Top 5 Bank Stocks To Invest In Right Now

In the wake of the financial crisis, consumers and shareholders clamored over bankers' pay. Many see "pay for performance" as the solution to this problem.

Despite more banks aiming to implement stronger long-term incentive plans, many banks are still falling short.

In this segment of The Motley Fool's everything-financials show,�Where the Money Is, banking analysts Matt Koppenheffer and David Hanson tackle the issue.

To view�Where the Money Is�in its entirety, click here!

You can follow�David�and�Matt�on Twitter.�

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's�new report. It's free, so click here to access it now.

Top 5 Bank Stocks To Invest In Right Now: Royal Bank Of Canada(RY)

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Dividend]

  Here are the biggest dividend growth stocks:
  
  Royal Bank of Canada (RY) has a market capitalization of $100.81 billion. The company employs 75,376 people, generates revenue of $19.794 billion and has a net income of $7.205 billion. Royal Bank of Canada�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.492 billion. The EBITDA margin is 63.10 percent (the operating margin is 32.55 percent and the net profit margin 25.49 percent).

• [By GuruFocus]

  This screen generates 37 stocks in the U.S. market as of today. The largest companies among the list are BHP Billiton (BHP) (BBL), Intel (INTC), China Petroleum & Chemical (SNP) and Royal Bank of Canada (RY).

Top 5 Bank Stocks To Invest In Right Now: M&T Bank Corporation (MTB)

M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; cred it life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

Advisors' Opinion:

• [By Jon C. Ogg]

  The M&T Bank Corp. (NYSE: MTB) and Hudson City Bancorp Inc. (NASDAQ: HCBK) transaction is the only pending deal of 2012 vintage due to various regulatory concerns. MTB currently has 9% short interest outstanding and PACW 15%. Another merger covered is the deal between Provident New York Bancorp (NASDAQ: PBNY) and Sterling Bancorp (NYSE: STL), and the balance are simply too small for us to warrant effort.

Top 10 Dividend Stocks To Buy Right Now: Northern Trust Corporation(NTRS)

Northern Trust Corporation, through its subsidiaries, provides asset servicing, fund administration, asset management, and fiduciary and banking solutions for corporations, institutions, families, and individuals worldwide. The company offers corporate and institutional services, including global master trust and custody, trade settlement, and reporting; fund administration; cash management; investment risk and performance analytical services; investment operations outsourcing; and transition management and commission recapture services. It also provides personal financial services, such as personal trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; brokerage services; and private and business banking services, as well as customized products and services. In addition, the company offers active and passive equity and fixed income portfolio management, as well as alternative asset classes comprisin g private equity and hedge funds of funds, and multi-manager products and advisory services. Further, it engages in fund administration, investment operations outsourcing, and custody business that provides specialized services to a range of funds, which include money-market, multi-manager, exchange-traded funds, and property funds for on-shore and off-shore markets. Additionally, the company provides administrative and middle-office services consisting of trade processing, valuation, real-time reporting, accounting, collateral management, and investor servicing. Northern Trust Corporation was founded in 1889 and is based in Chicago, Illinois.

Advisors' Opinion:

• [By Holly LaFon]

  In the fourth quarter, Yacktman�� biggest additions to his holdings were Research In Motion (RIMM) and Avon Products (AVP). He also surprised followers by venturing into financials, with new positions in Goldman Sachs (GS), Bank of America (BAC), State Street Corp. (STT) and Northern Trust Corp. (NTRS).

Top 5 Bank Stocks To Invest In Right Now: New York Community Bancorp Inc (NYCB)

New York Community Bancorp, Inc. is a bank holding company and a producer of multi-family mortgage loans in New York City, with an emphasis on apartment buildings that feature below-market rents. It has two bank subsidiaries: New York Community Bank (the Community Bank),New York Commercial Bank (the Commercial Bank. The Community Bank has 241 branches and operates through seven divisional banks. The Commercial Bank has 34 branches in Manhattan and operates 17 of its branches under the divisional name Atlantic Bank.

During the year ended December 31, 2011, all of the one-to-four family loans the Company originated was sold to government-sponsored enterprises (GSEs). In New York, the Company serves its Community Bank customers through Roslyn Savings Bank, with 55 branches on Long Island; Queens County Savings Bank, with 34 branches in the New York City borough of Queens; Richmond County Savings Bank, with 22 branches in the borough of Staten Island, and Roosevelt Savings Bank, with eight branches in the borough of Brooklyn. As of December 31, 2011, in the Bronx and neighboring Westchester County, the Company had four branches that operated directly under the name New York Community Bank.

In New Jersey, the Company serves its Community Bank customers through 51 branches that operate under the name Garden State Community Bank. In Florida and Arizona, where it has 25 and 14 branches, respectively, the Company serves its customers through the AmTrust Bank (AmTrust) division of the Community Bank. In Ohio, the Company serves its Community Bank customers through 28 branches of Ohio Savings Bank. Customers of the Community Bank and the Commercial Bank have access to their accounts through 261 of its 285 automatic teller machines (ATMs) locations in five states. The Company also serves its customers through three Websites, which include www.myNYCB.com, www.NewYorkCommercialBank.com and www.NYCBfamily.com.

Lending Activities

The Company�� principal asset is l! oans. Its loan portfolio consists of three components: covered loans, non-covered loans held for sale and non-covered loans held for investment. As of December 31, 2011, the balance of covered loans was $3.8 billion, of which $3.4 billion were one-to-four family loans. Non-covered loans held for sale consists of the one-to-four family loans that are originated for sale, primarily to GSEs. At December 31, 2011, the held-for-sale loan portfolio totaled $1.0 billion

As of December 31, 2011, loans held for investment consisted of loans that it originates for its own portfolio, and totaled $ 25.5 billion.

In addition to multi-family loans, loans held for investment include commercial real estate loans (CRE); acquisition, development and construction (ADC) loans; commercial and industrial loans (C&I), and one-to-four family loans. As of December 31, 2011, its multi-family loans represented $17.4 billion, or 68.3%, of total loans held for investment, and represented $5.8 billion, or 64.1%, of the total loans that it originated for investment. The multi-family loans it originates are typically secured by non-luxury apartment buildings in New York City. It also makes multi-family loans to property owners who are seeking to expand their real estate holdings by purchasing additional properties.

As of December 31, 2011, CRE loans represented $6.9 billion, or 26.9%, of total held for investment; ADC loans represented $445.7 million, or 1.7%, of total loans held for investment. Its ADC loan portfolio consists of loans that were originated for land acquisition, development, and construction of multi-family and residential tract projects in New York City and Long Island.

C&I loans represented $600.0 million, or 2.4%, of total held for investment. It also offers a range of loans to small and mid-size businesses for working capital (including inventory and receivables), business expansion, and the purchase of equipment and machinery. Non-covered one-to-four family loans totaled $127! .4 millio! n at December 31, 2011.

Investment Activities

The Company�� securities portfolio primarily consists of mortgage-related securities, and debt and equity (other) securities. Its investments include GSE certificates, GSE collateralized mortgage obligations (CMOs) and GSE debentures. The Community Bank and the Commercial Bank are members of the Federal Home Loan Bank of New York (FHLB-NY), one of 12 regional Federal Home Loan Banks (FHLBs) consisting of the FHLB system. As of December 31, 2011, the Company�� securities represented $4.5 billion, or 10.8%, of total assets. As of December 31, 2011, 93.7% of its securities portfolio consisted of GSE obligations; held-to-maturity securities represented $3.8 billion, or 84.0%, of total securities, and its investment in bank-owned life insurance (BOLI) was $769.0 million.

Source of Funds

The Company has four primary funding sources. These include the deposits that it added through its acquisitions or gathered through its branch network, and brokered deposits; wholesale borrowings, primarily in the form of FHLB advances and repurchase agreements with the FHLB and various brokerage firms; cash flows produced by the repayment and sale of loans, and cash flows produced by securities repayments and sales. As of December 31, 2011, deposits totaled $ 22.3 billion, which included certificates of deposit (CDs) of $7.4 billion; negotiable order withdrawal (NOW) and money market accounts of $8.8 billion; savings accounts of $ 4.0 billion, and non-interest-bearing accounts of $2.2 billion. As of December 31, 2011, the Company�� borrowed funds totaled $14.0 billion, loan repayments and sales generated cash flows of $15.0 billion, and securities sales and repayments generated cash flows of $4.2 billion.

Subsidiary Activities

As of December 31, 2011, Community Bank had 34 subsidiary corporations. Of these, 22 are direct subsidiaries of the Community Bank and 12 are subsidiaries of Community Bank! -owned en! tities. The 22 direct subsidiaries of the Community Bank include DHB Real Estate, LLC, Mt. Sinai Ventures, LLC, NYCB Community Development Corp., NYCB Mortgage Company, LLC, Eagle Rock Investment Corp., Pacific Urban Renewal, Inc., Somerset Manor Holding Corp., Synergy Capital Investments, Inc., 1400 Corp., BSR 1400 Corp., Bellingham Corp., Blizzard Realty Corp., CFS Investments, Inc., Main Omni Realty Corp., NYB Realty Holding Company, LLC, O.B. Ventures, LLC, RCBK Mortgage Corp., RCSB Corporation, RSB Agency, Inc., Richmond Enterprises, Inc. and Roslyn National Mortgage Corporation.

The 12 subsidiaries of Community Bank-owned entities include Bronx Realty Funding Company, LLC, Columbia Preferred Capital Corporation, Ferry Development Holding Company, Peter B. Cannell & Co., Inc., Roslyn Real Estate Asset Corp., Walnut Realty Funding Company, LLC, Woodhaven Investments Inc, Your New REO, LLC, Ironbound Investment Company, Inc.,The Hamlet at Olde Oyster Bay, LLC, The Hamlet at Willow Creek, LLC and Richmond County Capital Corporation.

The two direct subsidiaries of the Commercial Bank include Beta Investments, Inc., and Gramercy Leasing Services, Inc. The two subsidiaries of Commercial Bank-owned entities include Omega Commercial Mortgage Corp. and Long Island Commercial Capital Corp.

Top 5 Bank Stocks To Invest In Right Now: Australia and New Zealand Banking Group Ltd (ANZ)

Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Company conducts its operations in Australia, New Zealand and the Asia Pacific region. It also operates in a range of other countries, including the United Kingdom and the United States. The Company operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth and Private Banking. As of September 30, 2012, the Company had 1,337 branches and other points of representation worldwide, excluding automatic teller machines (ATMs). In September 2012, it sold its remaining shareholding in Visa Inc. Advisors' Opinion:

• [By Adam Haigh]

  Australia & New Zealand Banking Group Ltd. (ANZ) sank 3 percent after Australia�� third-largest bank by market value forecast interest margins will keep dropping. Hyundai Merchant Marine Co. jumped 6.9 percent in Seoul after North Korea and South Korea agreed to reopen the Gaeseong industrial complex. Chinese stock exchange officials are investigating a spike in the Shanghai Composite Index, which soared from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes. Everbright Securities Co. said it experienced a trading error.

• [By Weiyi Lim]

  The funds lured a net $25.9 billion in the period, Wei Liang Chang, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today, citing data from EPFR Global. Developed markets posted $24.3 billion of inflows, while emerging-nation funds drew $1.6 billion, according to Chang.

The Best MLP Investments You Can Make Today

One of the very best choices any investor can make when looking at master limited partnership (MLP) investments is going for those in the energy sector.

These MLPs offer investors both income and growth: Income through relatively high yields, and growth thanks to their involvement in America's booming energy industry.

As Money Morning Global Investing & Income Strategist Robert Hsu told readers Aug. 15, a $2,500 stake in energy MLPs 10 years ago is worth $10,000 today - twice the return of the S&P 500.

That's just the sector as a whole - that's not even just investing in the sector's best players.

For those unfamiliar with MLPs, here's what you need to know about what these investments are - and why you can't afford to leave them out of your portfolio.

Investing in MLPs

The first MLP investment started in 1981, with Apache Oil Co. Shortly after, other energy and real estate MLPs emerged. The goal was to raise capital from retail investors by offering an affordable and liquid security.

Best Casino Companies To Own For 2014

In 1987, Congress passed laws to clearly define MLP investments, which created the rules they operate under today.

To qualify as an MLP, a partnership must receive at least 90% of its income from qualifying sources. These sources include natural resource-related activities such as exploration and development, mining and production, processing, refining, storage, transportation, and marketing of a natural resource.

MLPs are traded on stock exchanges just like stocks. But instead of shares, you own units. And instead of dividends, you receive distributions.

Unlike with dividends, the majority of the income that unitholders receive is not taxed as income when received. Instead, it is considered as a reduction in the cost basis, creating a tax liability that is deferred until the units are sold.

Therefore, investing in MLPs for the long term can mean avoiding paying taxes on 80% to 90% of the distributions received.

Note: Investing in MLPs isn't the only way to accelerate your income. In fact, if you want to give your returns an extra shot in the arm, you'll sweeten your gains with these investments...

Types of MLPs

MLPs span a wide range of sectors, like coal mining, shipping, and hotels, but more than 80% are involved in the oil and gas sector.

There are two main types of oil and gas MLP investments:

Upstream MLPs: Those upstream MLPs focus on the exploration and development of oil and gas properties. This makes them a bit more risky since they are directly exposed to the fluctuations in the commodity price. However, many of these MLPs have and operate mature oil and gas fields that have long reserve lives. Midstream MLPs: The midstream segment includes the gathering, storing, transporting, and processing of oil and natural gas along with refined products. Many MLPs focus on transportation - in other words, pipelines. This is a very steady business and is the reason why MLPs are often called "toll road" businesses. Other MLPs in the sector may focus on storage and terminal facilities and processing of either oil or natural gas, which are also rather stable businesses.

The midstream is the MLP segment favored by Money Morning Global Energy Strategist Dr. Kent Moors.

What Lies Ahead for MLP Investments

With the shale boom rejuvenating the U.S. energy sector, MLP investments have been extremely profitable for investors. The total return of the broad-based Alerian MLP Index so far in 2013 is about 18.4%.

But it has been profitable for a while now. According to the Financial Times, the market capitalization of the MLP sector grew from just $8 billion in 1996 to about $480 billion today. And over the coming years, the MLP sector should grow into a trillion-dollar-plus asset class.

Income investors love their MLP investments. As of the end of June, the overall sector yielded 6.1%. And the Financial Times reported that distributions have risen 7.6% annually since the turn of the century, with income generated from MLPs doubling over the past decade.

Leonard Edelstein, portfolio manager at Yorkville Capital Management, told FT that the sector will easily return at least 10% to 15% annually to investors over the next few years. Income distributions alone from MLPs next year are forecast by Morgan Stanley to increase by 9%.

Translation: There is a lot more upside to come.

The Best MLPs

How can you find the best MLP investments today?

First, there are exchange-traded funds (ETFs) that offer a basket of MLPs.

The most liquid ETF is the Alerian MLP ETF (NYSEArca: AMLP). It tracks the Alerian MLP Index, which consists of the 50 most prominent energy MLPs.

Another MLP ETF is the Yorkville High Income MLP ETF (NYSE Arca: YMLP). Rather than weighting its constituents by market capitalization, the index this ETF is tied to targets MLPs with high yields and a strong record of growth in distributions.

Finally, there is the Global X Junior MLP ETF (NYSE Arca: MLPJ). The index it tracks follows the performance of the small capitalization segment of the MLP sector.

One of our favorite MLP investments is an energy-focused pick with a yield of 6.45%. By picking the best of the best, as Money Morning's Hsu explained, in 24 months you could be making 13.4% on every dollar you invest in today's market. Go here to learn more about one of the best MLPs to buy now.

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Revett Minerals is Knocking on the Door (RVM)

If you've never heard of Revett Minerals Inc. (NYSEMKT:RVM) before right now, don't worry about it - you're not alone. The $25 million silver and copper miner doesn't have enough size to merit much media attention, and to make things more difficult, silver and miner has spent the better part of 2013 being out of favor. Yet, things are slowing changing for RVM and its shareholders.... for the better. Though a little more work needs to be done, this stock's knocking on the door of a monster breakout.

Just to set the tone, RVM was - up until last quarter - an active producer. In Q4 of last year, the company generated $7.2 million worth of metals, and $19.3 million in Q3 of 2012. Since then, however, the shut-down of a key mine (Troy) limited Revett Minerals' top line to $216K in Q1, and nil in Q2.

A shutdown is an alarming turn of events for shareholders to be sure; that mine's original access route became impassable, and the company was forced to pull out, and then re-approach the Troy mine from a different angle. The new entry should work, but it takes time and money, which has meant trouble for the stock; RVM shares have fallen from $4.00 in the fall of last year to $0.73 now.

So what makes it worth bringing Revett Minerals up now? A light at the end of the tunnel, which is (more importantly) being reflected on a chart of RVM.

Though it's not done anything riveting after finally hitting bottom in June, shares have quietly and inconspicuously wiggled their way back above the 20-day moving average line (blue). Better still, Revett Minerals is working on clearing its 50-day moving average line. They're small step to be sure, but all large moves start small. The fact that traders aren't balking as the 50-day line is being tested speaks volumes.

That being said, one final milestone remains - the ceiling at $0.74. That's where RVM shares peaked in mid-July, again in late July, and where it peaked today. Clearly there's a mental hurdle there, but if the stock can close above that mark, this long-brewing breakout will finally take hold. The safe thing to do is wait for the final clue to fall into place, but as good as things look already, it may be worth taking a pre-emptive plunge and not waiting for that convincing close above $0.74.

If you'd like to get more trading ideas and insights like this, be sure to become a subscriber to the daily SmallCap Network e-newsletter. You'll get stock picks, market calls, and more. It's free!

Bond links: Puerto Rico bonds are bad news

WSJ: Big Brokerage firms in the U.S. move to shield investors from the island's bonds.

FT: Taper delay could be good news for stocks and bonds.

Learn Bonds: An introduction to income investing.

FT: Investors pour money into high yield.

Morningstar: The bond market after Lehman vs. the state of the bond market now.

Bloomberg: The Fed's move spurred a rally in Mexico bonds.

Telegraph: Bond funds to weather the storm.

NYT: Tax-exempt bonds referred to as a "stealth subsidy for private enterprise".

Best Dividend Stocks To Watch Right Now

Wolverine World Wide Inc.�� (WWW) board of directors recently announced a two-for-one stock split with respect to its common stock in the form of a stock dividend.

Simply put, the move involves altering the number of shares outstanding and proportionally adjusting the share price. This makes the shares look more reasonably priced, though the underlying value of the company remains constant. In a 2-for-1 stock split, every shareholder with one stock is given an additional share.

Additional shares on account of two-for-one stock split will be payable on Nov 1, 2013to stockholders of record as of Oct 1, 2013. Alongside, Wolverine announced a quarterly cash dividend of 6 cents a share on a post-split basis.

Recently, this Zacks Rank #1 (Strong Buy) company came up with strong second-quarter 2013 results, owing to the robust performance of its newly acquired brands. Wolverine�� quarterly earnings of 46 cents a share zoomed past the company�� previous guidance range of 31 cents ��35 cents and handily surpassed the Zacks Consensus Estimate of 34 cents. Moreover, the quarterly earnings jumped 12.2% year over year.

Best Dividend Stocks To Watch Right Now: Paragon Shipping Inc.(PRGN)

Paragon Shipping Inc. provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargoes and containers. Its fleet consists of 11 drybulk vessels with a total carrying capacity of 747,994 dwt. The company was founded in 2006 and is based in Voula, Greece.

Best Dividend Stocks To Watch Right Now: Tyco International Ltd.(Switzerland)

Tyco International Ltd. provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products worldwide. The company?s Tyco Security Solutions segment designs, sells, installs, services, and monitors electronic security, productivity, and lifestyle enhancement systems for residential, commercial, industrial, and governmental customers. This segment also designs, manufactures, and sells security products, including intrusion, security, access control, electronic article surveillance, and video management systems. Its Tyco Fire Protection segment designs, manufactures, sells, installs, and services fire detection and fire suppression systems, and building and life safety products for commercial, industrial, and governmental customers. The company?s Tyco Flow Control segment designs, manufactures, sells, and services valves, pipes, fittings, valve automation, and heat tracing products for general proce ss, energy, and mining markets, as well as the water and wastewater markets. Tyco International Ltd. was founded in 1960 and is based in Schaffhausen, Switzerland.

Hot Energy Companies To Buy For 2014: Kraft Foods Inc.(KFT)

Kraft Foods Inc., together with its subsidiaries, manufactures and markets packaged food products worldwide. The company offers biscuits, including cookies, crackers, and salted snacks; confectionery products, such as chocolate, gum, and candy; beverages comprising coffee, packaged juice drinks, and powdered beverages; cheese products, including natural, processed, and cream cheeses; grocery items consisting of spoonable and pourable dressings, condiments, and desserts; and convenient meals, which comprise processed meats, packaged dinners, and lunch combinations. Its primary brand portfolio includes Oreo, Nabisco, and LU branded biscuits; Milka and Cadbury branded chocolates; Trident branded gum; Jacobs and Maxwell House branded coffees; Philadelphia branded cream cheeses; Kraft branded cheeses, dinners, and dressings; and Oscar Mayer branded meats. The company sells it products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributor s, convenience stores, gasoline stations, drug stores, value stores, and retail food stores. Kraft Foods Inc. was founded in 2000 and is based in Northfield, Illinois.

Best Dividend Stocks To Watch Right Now: PMC Commercial Trust(PCC)

PMC Commercial Trust operates as a real estate investment trust (REIT). It primarily originates loans to small businesses, principally in the limited service hospitality industry, collateralized by first liens on the real estate of the related business. The company has elected to be treated as a REIT under the Internal Revenue Code and would not be subject to federal income tax, provided it distributes approximately 90% of its taxable income to its shareholders. PMC Commercial Trust was founded in 1993 and is headquartered in Dallas, Texas.

Best Dividend Stocks To Watch Right Now: Qualstar Corporation(QBAK)

Qualstar Corporation designs, develops, manufactures, and sells automated magnetic tape libraries used to store, retrieve, and manage electronic data primarily in network computing environments worldwide. Its tape libraries consists of cartridge tape drives, tape cartridges, and robotics to move the cartridges from their storage locations to the tape drives under software control. The tape libraries also provide data storage solutions for organizations requiring backup, recovery, and archival storage of critical electronic information. The company also offers ancillary products related to its tape libraries, such as tape media, tape magazines, cables, bar code labels, and fiber channel adapters. In addition, it designs, develops, and sells switching power supplies that are used to convert alternate current line voltage to direct current voltages for use in electronic equipment, such as telecommunications equipment, servers, routers, switches, lighting, and gaming devices. Qualstar Corporation sells its tape drive products primarily to value added resellers and original equipment manufacturers, as well as switching power supplies primarily to original equipment manufacturers, contract manufacturers, and distributors. The company was founded in 1984 and is headquartered in Simi Valley, California.

Best Dividend Stocks To Watch Right Now: Progress Energy Inc.(PGN)

Progress Energy, Inc., a utility holding company, engages in the generation, transmission, distribution, and sale of electricity in North Carolina, South Carolina, and Florida. It uses coal, oil, hydroelectric, natural gas, and nuclear power to generate electricity. The company also engages in various alternative energy projects to generate electricity from swine waste and other plant or animal sources, biomass, solar, hydrogen, and landfill-gas technologies. Progress Energy serves various industries, including chemicals, textiles, paper, food, metals, wood products, rubber and plastics, and stone products, as well as phosphate rock mining and processing, electronics design and manufacturing, and citrus and other food processing. It has approximately 22,000 megawatts of regulated electric generation capacity and serves approximately 3.1 million retail electric customers, as well as other load-serving entities. The company was formerly known as CP&L Energy, Inc. Progress En ergy, Inc. was founded in 1925 and is headquartered in Raleigh, North Carolina.

Best Dividend Stocks To Watch Right Now: Lorillard Inc(LO)

Lorillard, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes in the United States. The company offers 43 different product offerings under the Newport, Kent, True, Maverick, and Old Gold brand names. Lorillard, Inc. sells its products primarily to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies, including the United States? Armed Forces. The company was founded in 1760 and is headquartered in Greensboro, North Carolina.

Best Dividend Stocks To Watch Right Now: ProLogis(PLD)

Prologis Inc. is an independent equity real estate investment trust. It invests in the real estate markets across the globe. The firm engages in the ownership, development, management, and leasing of industrial distribution and retail properties. It was previously known as Security Capital Investment Trust. Prologis Inc. was formed in 1991 and is based in San Francisco, California with an additional office in Denver, Colorado.

Harshest Critics Don't Understand Apple

NEW YORK (TheStreet) -- If you're not concerned about Apple's (AAPL) long-term health and prosperity, there's something wrong with you. Simple as that. You're either a fanboy living in denial or have yet to deal with some type of intellectual issue that impedes efficient cognition.

It's just not possible to conduct Apple discourse without bringing up Steve Jobs' legacy and the unlikelihood that Tim Cook can do it justice from some point forward.

But this doesn't render every move Apple makes today crappy and brainless. If Apple can do no right in your mind, check yourself. There's a good chance you're committing the same type of injustice I chided Lazard Capital Markets' analyst Barton Crockett for committing a couple weeks ago. You have a conviction -- bullish or bearish -- but you filter out, gloss over or refuse to meaningfully acknowledge any data that counters it.

Top 5 Companies To Invest In 2014

I can't claim to know what's going on inside of TheStreet's Doug Kass' head as he formulates the opinion that Google (GOOG) and, more specifically, Android is an Apple killer, but I'd love to be able to peel the onion back a bit. While Kass has been right more than wrong on the stock (he might be batting 1,000?), that disconnect between company and stock, between the big money's whims and reality comes into play when he writes: Google, unlike Apple, understands the importance of market share; it is going to price this device at breakeven -- about $300 to 350 and less than half of iPhone D(ud) -- and that is going to be much higher spec'd (better and bigger screen, processor, battery and camera). Google is simply more innovative. It develops a broader ecosystem that includes newer and cooler devices like Google Glass, in addition to handsets and tablets, with numerous partners. It delivers better products, and prices them more aggressively to take market share. Meanwhile, Apple lives in the past and tries to compete on the basis of hardware features much more than it has at any point in the past. Quite a bit of that is subjective. A fair share is suspect (given its relative unavailability, Google Glass is a non-factor). But, once again, it's the market share comment that gives me the courage to go after one of TheStreet's biggest and most-respected names. On so many levels, Kass, like so many other Apple detractors, misses the point. First, objectively speaking, the most recent comScore U.S. data show that, among smartphone operating systems, Apple, despite popular meme, is the only one actually gaining market share. Between the quarters ending April 2013 and July 2013, Apple's market share increased by 1.2%, topping the 40% mark. Apple sits 11.4% behind Android, which saw its market share slip by 0.2% over the same people. BlackBerry (BBRY) continues to die a prolonged death, while Microsoft (MSFT), appropriately, is flat at a wimpy 3%. But here's where the cognitive skills come in.

In comScore's ranking of the top smartphone OEMs (companies that make the hardware) Apple remains number one by a relative mile. With a 40.4% market share, it's still growing and a full 16.3 percentage points ahead of second-place Samsung. Apple managed to grow without a new device. Samsung's share increased 2.1% over the same timeframe with too many devices to count.

You cannot look at the operating system and have a serious and honest market share discussion about Apple and smartphones. The OEM category provides a much more accurate, self-explanatory picture.

We could argue all day about "the importance of market share."

It's about as easy to achieve consensus there as it is to get a room full of Toronto Maple Leafs fans to agree on the team's goaltender strategy headed into the season. Do they give one guy the job and go with him all season or let James Reimer and Jonathan Bernier share the load? I could probably make an effective argument in either direction. So I'm not saying Doug Kass and others are wrong to argue that Apple should cheapen its brand and grab some low-hanging fruit. There aren't many among us -- Tim Cook included -- who don't think this approach would generate more market share for iOS. But I guarantee you this, lots of folks are in Apple-hate mode right now. If the company came out with a truly "cheap" phone, a 5S in multiple colors with multiple screen sizes they would be getting hammered for risking margins and profit. With some people right now the company can't win, even when it is winning. There's lots to worry about in Apple's future. But if you're calling the world's most popular smartphone a "dud" and suggesting it should cut prices by "$300 to $350" you're mistaking the here and now for a future that has yet to arrive. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Jefferies Analyst Sees Possibility of Microsoft Bid on BlackBerry (MSFT)

According to Jefferies analyst Peter Misek, software company Microsoft Corporation (MSFT) is now more likely to acquire BlackBerry.

On September 2, Microsoft announced that it had agreed to purchase Nokia's devices and services business. After this deal is finalized, the analyst sees Microsoft taking a closer look at BlackBerry.

The analyst noted that having both the Nokia business as well as BlackBerry assets, MSFT would be “1) the definitive #3 handset player with better carrier access and production economies of scale; 2) the leader in enterprise mobile devices with support from the U.S. gov’t; 3) a key player in MDM, an area they would love to get into and purchasing private leaders in the space would be pricey.”

Misek also reported that other bidders may include International Business Machines (IBM) and Samsung. He also suggested the possibility of BlackBerry splitting into several pieces.

China Undermines PC Industry, as Smartphones Take Hold Around the World

For many industries hurt by slow growth, there is China and there is the rest of the world. As consumer and business activity slows in the old world of Europe and the United States, the wildly expanding economy of the People’s Republic creates powerful demand for all sorts of goods and services, both for those originated inside its borders and for importers. The personal computing (PC) industry recently discovered that it can no longer count on China. More than its economy, it is the global move away from PCs to portable devices that will further hurt the aging industry.

A new IDC research study on the global PC outlook shows:

Worldwide PC shipments are now expected to fall by -9.7% in 2013, further deepening what is already the longest market contraction on record.

And:

Leading this trend is China's revised forecast, which calls for a double-digit decline in shipments this year compared to 2012, as channel sources report high levels of stagnant inventory and continued enthusiasm for tablets and smartphones.

Tablet sales might be a rescue for companies like Apple Inc. (NASDAQ: AAPL) and Samsung. Huge PC firms, especially Hewlett-Packard Co. (NYSE: HPQ) and Dell Inc. (NASDAQ: DELL), do not have that lifeline. But the strength of tablet sales has slowed as well, leaving the smartphone as the last man standing.

IDC research on the global tablet outlook shows:

Faced with growing competition from larger smartphones and the prospect of new categories such as wearable devices diverting consumer spending, International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker modestly lowered its tablet forecast for 2013 and beyond. The company now expects worldwide tablet shipments to reach 227.4 million units in 2013, down from a previous forecast of 229.3 million but still 57.7% above 2012 shipments.

The news is hardly devastating, but it does represent what appears to be a relentless trend. The companies that control the smartphone sector, once again primarily Apple and Samsung, have brighter futures that those that never got a foothold in the smartphone industry at all.

Hot Energy Companies To Invest In Right Now

Saudi Arabia can keep its oil, we have enough of our own. Photo Credit: Flickr/azrainman

It's an exciting time to be an energy investor. Oil production in the U.S. is booming and as oil prices stay high, it's easy to see a future in which U.S. oil production takes a giant leap forward. That future could yield real wealth-building profits for investors, which is why I'm going to show you where to look and how to invest in America's exciting oil future.

The Bakken is booming, but it's only the beginning
This past May, the Bakken set a new record for daily oil production at an average of 810,129 barrels of oil per day. That puts the play on pace to produce an average of 850,000 barrels of oil per day by year's end. That's a pretty big number, especially when considering the total output for the U.S. is around 7.3 million barrels of oil per day. It's even more impressive when considering that the Bakken has only been producing large quantities of oil for the past few years.

Hot Energy Companies To Invest In Right Now: Peabody Energy Corporation(BTU)

Peabody Energy Corporation engages in the mining of coal. It mines, prepares, and sells thermal coal to electric utilities and metallurgical coal to industrial customers. The company owns interests in 30 coal mining operations located in the United States and Australia, as well as owns joint venture interest in a Venezuela mine. It is also involved in marketing, brokering, and trading coal. In addition, the company develops a mine-mouth coal-fueled generating plant; and Btu Conversion projects that are designed to convert coal to natural gas or transportation fuels; and clean coal technologies. As of December 31, 2011, it had 9 billion tons of proven and probable coal reserves. The company was founded in 1883 and is headquartered in St. Louis, Missouri.

Advisors' Opinion:

• [By Sherry Jim]

  BTU International, Inc.(NASDAQ: BTUI) closing price in the stock market Tuesday, Jan. 3, was $2.5608. BTUI is trading -7.35% below its 50 day moving average and -45.75% below its 200 day moving average. BTUI is -80.90% below its 52-week high of $13.41 and 5.38% above its 52-week low of $2.44. BTUI‘s PE ratio is 12.93 and its market cap is $24.28M .

  BTU International, Inc. engages in the design, manufacture, sale, and service of thermal processing systems used in various manufacturing processes primarily in the electronics, alternative energy, and automotive industries worldwide.

• [By Victor Mora]

  Peabody Energy provides coal energy products and services to a wide range of companies in various industries worldwide. The stock has been in a steep decline for the last few years but may be stabilizing at these current prices. Earnings and revenue figures have been decreasing, over the last four quarters, but investors have been pleased with what they’ve heard during the earnings reports. Relative to its peers and sector, Peabody Energy has been one of the worst performers, year-to-date. STAY AWAY from Peabody Energy for now.

Hot Energy Companies To Invest In Right Now: Renesola Ltd.(SOL)

ReneSola Ltd, together with its subsidiaries, engages in the manufacture and sale of solar wafers and solar power products. It offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules. The company also provides cell and module processing services. Its products are used in a range of residential, commercial, industrial, and other solar power generation systems. The company sells its solar wafers primarily to solar cell and module manufacturers. It principally operates in Mainland China, Singapore, Taiwan, Hong Kong, Korea, India, Australia, Germany, Italy, Spain, Belgium, France, the Czech Republic, and the United States. The company was founded in 2003 and is based in Jiashan, the People?s Republic of China.

Advisors' Opinion:

• [By Martin]

  Renesola Ltd.(NYSE: SOL) closing price in the stock market Tuesday, Jan. 3, was $1.61. SOL is trading -6.98% below its 50 day moving average and -45.69% below its 200 day moving average. SOL is -87.85% below its 52-week high of $13.25 and 11.03% above its 52-week low of $1.45. SOL‘s PE ratio is 1.56 and its market cap is $139.77M.

  Renesola Ltd. engages in the manufacture and sale of solar wafers and solar power products together with its subsidiaries. SOL offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules.

• [By Roberto Pedone]

  
  

  One under-$10 name that's starting to move within range of triggering a big breakout trade is ReneSola (SOL), a manufacturer of solar wafers and producer of solar power products based in China. This stock has been on fire so far in 2013, with shares up sharply by 183%.

  If you take a look at the chart for ReneSola, you'll notice that this stock has been uptrending very strong for the last four months and change, with shares soaring higher from its low of $1.25 to its recent high of $4.85 a share. During that uptrend, shares of SOL have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of SOL have pulled back a bit during the last few weeks, with the stock coming off that high of $4.85 to its recent low of $3.52 a share. This stock has now started to bounce off that $3.52 low and it's quickly moving within range of triggering a big breakout trade.

  Traders should now look for long-biased trades in SOL if it manages to break out above some near-term overhead resistance levels at $4.25 to $4.50 a share and then once it clears its 52-week high at $4.85 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.09 million shares. If that breakout triggers soon, then SOL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $7 to $8 a share.

  Traders can look to buy SOL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $3.31 a share. One can also buy SOL off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 10 Biotech Stocks To Watch For 2014: Solar Energy Initiatives Inc (SNRY)

Solar Energy Initiatives, Inc., incorporated on June 20, 2006, is a provider of solar solutions with three wholly owned subsidiaries focused on projects, solar education and distribution of solar products. Its products include solar panels, inverters, solar thermal systems, system design, financial consulting and analysis, construction management, and maintenance and monitoring. The SNRYPower subsidiary is a developer and manager of municipal and commercial scale solar projects. The Solar-EOS Inc subsidiary is engaged in education and continuous improvement of solar energy trade professionals. The SNRYSolar Inc subsidiary is a wholesale distributor of branded photovoltaic and thermal (water heating) systems selling via a network of dealers throughout the United States and the Caribbean. During the fiscal year ended July 31, 2010 (fiscal 2010), the Company sold its interests in SolarEnergy.com, a domain name and digital property back to its original owner. In February 2011, the sold its Solar (EOS) Division.

Solar EOS, Inc.

Solar EOS, Inc. is a wholly owned subsidiary of Solar Energy Initiatives, Inc. It is an education group dedicated to the creation, training, advancement and continuous improvement of professionals through standard and customized solar training programs and workforce development. It supports the growth of the solar industry through training and education. Solar EOS provides training through its Professional Development Institute and through its Technical Installation Schools, as well as through its Customized Training Programs.

Professional Development Institute offers programs to architects, engineers, general contractors, roofers, plumbers, facility managers and owner�� representatives. The institute offers solar courses to members of the professional communities. Many courses provide needed continuing education units for licensure and professional registrations. Solar EOS is also an approved Ukulele Society of Great Britain (USGB) Educatio! n Provider. These classes are paid for by the professional or his company when taking the course.

Technical Installation Schools focus on workforce development and public/private partnerships. The school trains the next generation of solar thermal and photovoltaic installers in construction best practices, utilizing hands-on training, real world situations, theory and design coursework, and professional development training. Career Services programs, partnerships and dealer relationships drive the job placement of the students. These courses are paid for by the business rather than the individuals.

Customized Training Programs work through partnerships with universities, community and technical colleges, non profits, corporations, professional organizations, municipalities and workforce redevelopment agencies to meet the specific needs of groups of students. The Company writes the curriculum, provides the instructors, coordinates workshops, develops training programs, and hosts webinars and on-demand webcasts. The students do not pay for the course but is paid for through a variety of government programs in the form of a grant. As of October, 2010, the Company entered the fourth class for the Technical Installation School and graduated over 50 students, and trained more than 100 professionals in its Professional Development Institute.

SNRY Solar Inc.

SNRY Solar Inc. is a wholly owned subsidiary of Solar Energy Initiatives, Inc. (SEI). SNRY Solar is responsible for two areas: wholesale sales and government programs. SNRY Solar represents several manufacturers of solar systems and components in the Photovoltaic (PV), Solar Thermal / Hot Water (HW) and solar pool heating systems. SNRY Solar inventories and sells these components and systems to a network of installers, dealers and other business types across the United States and the Caribbean. SNRY Solar provides technical information, supply coordination and extensive sales support to aide these indep! endent bu! sinesses.. These support functions include but are not limited to preliminary engineering, scoping and drawings to support sales activity as well as lead generation tools, product recommendation and proposal support. SNRY Solar has developed business models which engage community groups, local, state and federal leaders and grass roots organizations to seek available funds to support job creation through solar.

SNRY POWER Inc.

SNRY POWER Inc. is a wholly owned subsidiary that focuses on developing solar photovoltaic (PV) panel systems for either mounting on the ground or on rooftops. These systems, once installed, generate electricity that is sold to various third parties including utilities, home and business owners, municipalities and other government agencies. In the Power Purchase Agreement (PPA) program, the Company builds the PV system at no charge to the host (the municipality or other customer). The system is built on space (either land or rooftop) provided by the host in exchange for a reduction in the hosts payment for electricity (usually expressed in cents per kilowatt hour (KWh).

The Company is constructing a one mega watt (MW) ground mounted solar PV system on land provided by the Cherokee School District in North Carolina. It has secured construction financing to build 50% of the system and considering selling the system in fiscal 2010.

Solar panels are solar cells electrically connected together and encapsulated in a weatherproof package. The Company purchases from Suntech, GE Solar, BP Solar and other vendors in the Unites States and off-shore. Inverters transform direct current (DC), electricity produced by solar panels into alternating current (AC), electricity used in homes and businesses. Inverters are used in every on-grid solar power system and feed power either directly into the structure�� electrical circuit or into the utility grid. In North America, it sells branded inverters designed for use in residential and commercia! l systems.! Inverters it sources include models spanning a power range of 2.5 to 500 kilowatts. Its inverters are manufactured by Solectria, Xantrex, SMA Technologies, AG and PV Powered. Solar thermal systems include a solar collector, which gathers solar radiation to heat air or water for domestic, commercial or industrial use, piping and/or pump(s) to move heated water and a tank for storage. The Company provides dealers and customers with a variety of services, including system design, energy efficiency, financial consulting and analysis, construction management and maintenance and monitoring. Solar electric and solar thermal systems are designed to take into account the customer�� location, site conditions and energy needs.

The Company competes with groSolar, Sunpower, Sunwize, BP Solar, Evergreen Solar and GE Solar.

Hot Energy Companies To Invest In Right Now: S&P 500/Barra Value(SU)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro duction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary , Canada.

Advisors' Opinion:

• [By Lowell]

  Suncor produces conventional and unconventional oil and owns the PetroCanada and Sunoco brands in Canada.  It recently successfully completed the acquisition and integration of the old Petro Canada – and now manages all of Petro Canada’s assets.  It took some time for the markets to react favorably to the integration, but Suncor is finally back in the game.  The shares have already run up a good 20% over the past six months.  Expect them to continue to do so if oil prices climb into the high nineties.  Trust me, you don’t want to be caught in the cold when this train takes off again.

Hot Energy Companies To Invest In Right Now: Gastar Exploration Ltd (GST)

Gastar Exploration Ltd (Gastar) is an independent energy company engaged in the exploration, development and production of natural gas and oil in the United States. The Company�� principal business activities include the identification, acquisition, and subsequent exploration and development of natural gas and oil properties with an emphasis on unconventional reserves, such as shale resource plays. As of December 31, 2011, it is pursuing the development of liquids-rich natural gas in the Marcellus Shale in the Appalachia area of West Virginia and, to a lesser extent, central and southwestern Pennsylvania. The Company also holds prospective acreage in the deep Bossier play in the Hilltop area of East Texas and conduct limited coal bed methane (CBM) development activities within the Powder River Basin of Wyoming and Montana. The Company is a holding company. Advisors' Opinion:

• [By Roberto Pedone]

   Gastar Exploration (GST) is an independent energy company, engaged in the exploration, development and production of natural gas and oil in the U.S. This stock is trading up 2.8% to $1.26 in recent trading.

  Today’s Range: $1.24-$1.30

  52-Week Range: $0.70-$3.36

  Volume: 186,000

  Three-Month Average Volume: 516,159

  From a technical perspective, GST is bouncing modestly higher here right above some near-term support $1.15 with light volume. This stock has been uptrending strongly for the last month and change, with shares soaring from a low of 70 cents to its recent high of $1.38. During that move, shares of GST have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed GST within range of triggering a major breakout trade. That trade will hit if GST clears some near-term overhead resistance levels at $1.38 to $1.39 with high volume.

  Traders should now look for long-biased trades in GST as long as it’s trending above $1.15, and then once it sustains a move or close above those breakout levels with volume that hits near or above 516,159 million shares. If that breakout triggers soon, then GST will set up to re-test or possibly take out its next major overhead resistance level at its 200-day moving average of $1.77 or possible even $1.89 to $1.96.

Hot Energy Companies To Invest In Right Now: SunPower Corp (SPWR.O)

SunPower Corporation, incorporated in April 1985, is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. The Company operates in two business segments: the Utility and Power Plants (UPP) Segment and the Residential and Commercial (R&C) Segment. The UPP Segment refers to its solar products and systems business, which includes power plant project development and project sales, turn-key engineering, procurement and construction (EPC) services for power plant construction, and power plant operations and maintenance (O&M) services. UPP Segment also sells components, including huge volume of sales of solar panels and mounting systems to third parties, sometimes on a multi-year, firm commitment basis. The R&C Segment focuses on solar equipment sales into the residential and small commercial market through its third-party global dealer network, as well as direct sales and EPC and O&M services in the United States and Europe for rooftop and ground-mounted solar power systems for the new homes, commercial and public sectors. In May 2012, K Road Power Holdings, LLC (K Road) and SunPower Corp announced that K Road acquired the 25-megawatt (AC) McHenry Solar Project, which the Company designed. In January 2013, the Company MidAmerican Solar acquired the 579-megawatt Antelope Valley Solar Projects (AVSP), two co-located projects in Kern and Los Angeles Counties in Calif from SunPower.

In January 2012, the Company completed its acquisition of the wholly owned Total SA subsidiary Tenesol SA, a global solar provider. In September 2011, NRG Energy Inc. acquired 250 megawatt California Valley Solar Ranch (CVSR) project from SunPower. In June 2011, the Company introduced SunPower E20 Series Solar Panel (E20) series. The Company�� customers in its UPP Segment include investors, financial instituti ons, project developers, electric utilities, and independen! t! power producers in the United States, Europe, and Asia. In its R&C Segment, the Company primarily sells its products to commercial and governmental entities, production home builders, and its third-party global dealer network serving residential owners and small commercial building owners.

Solar Cells

The A-300 solar cell is a silicon solar cell with a specified power value of 3.1 watts and a conversion efficiency averaging between 20.0% and 21.5%. The Company�� A-330 solar cell delivers 3.3 watts with a conversion efficiency of up to 22.7%.

Solar Panels

The Company�� SunPower solar panel series include solutions, such as SunPower E18 Series Solar Panel (E18), SunPower E19 Series Solar Panel (E19), and SunPower E20 Series Solar Panel (E20). Available in a 72-cell configuration, the E18 series panel uses its A300 all back-contact solar cells and delivers a total panel conversion of 18.1% to 18.5%. Available in a 72, 9 6, and 128-cell configuration, the E19 series panel uses its A300 all back-contact solar cells and delivers total panel conversion of 19.3% to 19.7%. Available in a 96-cell configuration, the E20 series panel uses its A-330 all back-contact solar cells and delivers total panel conversion of up to 20.1%.

Inverters

The Company sells a line of SunPower branded inverters. The inverters are manufactured by third parties.

Roof Mounted Products

The roof mounted products include SunPower T-5 Solar Roof Tile System (T-5), SunPower T-10 Commercial Solar Roof Tiles (T-10), PowerGuard Roof System (PowerGuard) and SunTile Roof Integrated System (SunTile). Tilted at a 5-degree angle, the T-5 roof tile is a non-penetrating photovoltaic rooftop product that combines solar panel, frame, and mounting system. The T-5 solar roof tile systems are primarily sold through its R&C Segment.

Tilted at a 10-degree angle, the T-10 commerci al solar roof tiles is a non-penetrating panel interlock! sys! tem! . Depe! nding on geographical location and local climate conditions, this can allow for the generation of up to 10% more annual energy output than traditional flat roof-mounted systems. The T-10 commercial solar roof tile is primarily sold through its R&C Segment.

PowerGuard is a non-penetrating roof-mounted solar panel that delivers electricity while insulating and protecting the roof membrane from ultraviolet rays and thermal degradation. The PowerGuard roof system is primarily sold through its R&C Segment. SunTile solar shingles are designed to replace multiple types of roof panels, including the common concrete flat, low and high profile S tile and composition shingles. The SunTile roof system is also sold through its R&C Segment.

Ground Mounted Products

The ground mounted products include SunPower T-0 Tracker (T-0) & SunPower T-20 Tracker (T-20), SunPower Oasis Power Plant (SunPower Oasis), SunPower C-7 Tracker (C-7), and Fixed Tilt and Su nPower Tracker Systems for Parking Structures. The T-0 and T-20 trackers are single-axis tracking systems that automatically pivot solar panels to track the sun's movement throughout the day. This tracking feature increases the amount of sunlight that is captured and converted into energy by up to 30% over flat or fixed-tilt systems, depending on geographic location and local climate conditions. A single motor and drive mechanism can control 10 to 20 rows, or more than 200 kilo watts of solar panels. The T-0 and T-20 trackers have been installed in a range of geographical markets principally in the United States, Germany, Italy, Portugal, South Korea, and Spain. The T-0 and T-20 trackers are sold through both its UPP and R&C Segments.

The Oasis is a solar power block that scales from 1 mega watts distributed installations to central station power plants. Oasis provides a way to deploy utility-scale solar power systems, streaming the development and construction process while optimizing the use of available land! . The Sun! ! Power Oas! is is sold through its UPP Segment. The C-7 combines a horizontal single-axis tracker with rows of parabolic mirrors, reflecting light onto linear arrays of its solar cells. The C-7 tracker is sold through its UPP Segment. SunPower has developed designs for solar power systems for parking structures in multiple configurations. These dual-use systems typically incorporate solar panels into the roof of a carport or similar structure to deliver onsite solar power while providing shade and protection. They are suited for parking lots adjacent to facilities. Fixed Tilt and SunPower Tracker Systems for parking structures are sold through both its UPP and R&C Segments.

Other System Offerings

SunPower�� metal roof system is designed for sloped-metal roof buildings, which are used in some winery and warehouse applications. This solar power system is designed for rapid installation. It also offers other architectural products, such as day lighting with tran slucent solar panels.

Balance of System Components

Balance of system components are components of a solar power system other than the solar panels. It includes SunPower branded inverters, mounting structures, charge controllers, grid interconnection equipment, and other devices depending on the specific requirements of a particular system and project.

The Company competes with Canadian Solar Inc., JA Solar Holdings Co., Kyocera Corporation, Mitsubishi Corporation, Q-Cells AG, Sanyo Corporation, Sharp Corporation, SolarCity Corporation, SolarWorld AG, Sungevity, Inc., SunRun, Inc., Suntech Power Holdings Co. Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd., Abengoa Solar S.A., Acconia Energia S.A., AES Solar Energy Ltd., Chevron Energy Solutions, EDF Energy plc, First Solar Inc., NextEra Energy, Inc., OPDE Group, NRG Energy, Inc., Recurrent Energy, Sempra Energy, Skyline Solar, Inc., Solargen Energy, Inc., Solaria Corporatio n, SolFocus, Inc., SunEdison and Tenaska, Inc! .

Will Sirius XM See an Explosive Move Higher?

With shares of Sirius XM (NASDAQ:SIRI) trading around $3.50, is SIRI an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Sirius XM broadcasts its music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States on a subscription fee basis through its two satellite radio systems. Subscribers can also receive its music and other channels over the Internet, including through applications for mobile devices. Audio entertainment has always pleased consumers and is a medium that is here to stay. Sirius XM is looking to expand its audio entertainment channels to every audio medium possible which will surely translate to rising profits. As consumers continue to adopt this technology, look for Sirius XM to gain market share.

T = Technicals on the Stock Chart are Strong

Sirius XM stock has seen an explosive move higher after establishing lows during the 2008 Financial Crisis. The stock is currently trading at multi-year highs and seems to want to keep plowing higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Sirius XM is trading above its rising key averages which signal neutral to bullish price action in the near-term.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Sirius XM options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Sirius XM Options	35.33%	53%	52%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
June Options	Flat	Average
July Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Sirius XM’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Sirius XM look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	0%	104.8%	-50%	1500%
Revenue Growth (Y-O-Y)	11.52%	13.87%	13.74%	12.51%
Earnings Reaction	5.86%	1.26%	0.35%	4.54%

Sirius XM has seen increasing earnings and revenue figures over most of the last four quarters. From these figures, the markets have been excited about Sirius XM’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Sirius XM stock done relative to its peers, Pandora (NYSE:P), Cumulus Media (NASDAQ:CMLS), Dialogic (NASDAQ:DLGC), and sector?

	Sirius XM	Pandora	Cumulus Media	Dialogic	Sector
Year-to-Date Return	21.80%	80.50%	41.57%	-36.22%	19.33%

Sirius XM has been an average relative performer, year-to-date.

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Conclusion

Sirius XM provides audio entertainment services through growing mediums to consumers of any age. The stock has been exploding higher over the last few years and is now trading at multi-year high prices. Earnings and revenue have been increasing over most of the last four quarters, which has really excited investors. Relative to its strong peers and sector, Sirius XM has been an average year-to-date performer. Look for Sirius XM to OUTPERFORM.

Is Verizon Stock a Buy After Its Recent Record Move?

With shares of Verizon (NYSE:VZ) trading around $46, is VZ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Verizon is a provider of communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. It operates in two primary segments: Verizon Wireless and Wireline. Verizon Wireless's communications products and services include wireless voice, data services, and equipment sales, which are provided to consumer, business, and government customers across the United States. Wireline's communications products and services include voice, Internet access, broadband video and data, Internet protocol network services, network access, long distance, and other services.

Verizon plans to sell between $45 billion and $49 billion in bonds to finance its $130 billion buyout of Vodafone's (NASDAQ:VOD) 45 percent stake in Verizon Wireless. The eight-part record bond offering could begin as soon as Thursday, according to sources who spoke to Bloomberg. The offering will consist of fixed-rate debt with maturities ranging between three and 30 years and two sets of floating-rate securities, sources said.

T = Technicals on the Stock Chart Are Mixed

Verizon stock has been part of an uptrend over the last several years. In the last few months, the stock has been pulling-back and heading towards opening prices for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Verizon is trading above its below key averages which signal neutral to bearish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Verizon options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Verizon Options	22.83%	70%	69%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
October Options	Steep	Average
November Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Rising Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Verizon’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Verizon look like and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	14.06%	15.25%	-107.21%	14.29%
Revenue Growth (Y-O-Y)	4.32%	4.17%	5.66%	3.92%
Earnings Reaction	-1.51%	2.76%	0.58%	2.37%

Verizon has seen rising earnings and revenue figures over the last four quarters. From these numbers, the markets have mostly been happy with Verizon’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Verizon stock done relative to its peers AT&T (NYSE:T), T-Mobile (NASDAQ:TMUS), Sprint (NYSE:S), and sector?

	Verizon	AT&T	T-Mobile	Sprint	Sector
Year-to-Date Return	7.33%	1.51%	27.21%	16.31%	10.38%

Verizon has been an average relative performer, year-to-date.

Conclusion

Verizon provides communications products and services through a variety of mediums to consumers and companies around the world. The company is involved in a record-breaking bond offering that is being used for the purchase of Vodafone’s stake in Verizon Wireless. The stock has not been doing well in the last several months as it continues to pull-back. Over the last four quarters, investors have mostly been happy as earnings and revenues have been rising. Relative to its peers and sector, Verizon has been an average year-to-date performer. WAIT AND SEE what Verizon does this coming quarter.

There Is Trouble Brewing at Two Defensive Tobacco Companies

After a record first half, tobacco stocks are now starting to pull back as the high-yield sector of the market is sold-off. During the first six and a half months of the year, Altria (NYSE: MO  ) matched the S&P 500 with gains of 17.5%, while Reynolds American (NYSE: RAI  )  climbed 24% and Philip Morris International (NYSE: PM  )  advanced 7.3%, all excluding dividends (the S&P 500 gained 18% over the same period). However, since the recent sell-off began, all three companies have wiped out most of their gains so far this year.  

So is it time to take a position? 

It could be, although there are several factors weighing on these companies that I am concerned about--and I'm not talking about the fact that they sell tobacco. 

Rising debt, falling equity 

Tobacco companies have been buying back shares in an attempt to offset declining sales and earnings. In particular, Philip Morris has been buying back huge quantities of stock, but this is at the expense of shareholder equity; the company has borrowed heavily to finance these buybacks.  

 Metric

2011 

2012 

Q1 2013

Q2 2013 

Cash Flow from operations	$10.5	$9.4	$1.4	$3.1
Buybacks and Dividends	$10.1	$12.0	$3.0	$3.0

Figures in $ billions 

Simply put, Philip Morris is spending more than it can afford on dividends and buybacks. During 2012, the company spent $2.6 billion more on investor returns than cash flow from operations provided, and the same can be seen for the first quarter of this year. 

  Metric

2008 

2009 

2010 

2011 

2012 

2013E 

2014E 

2015E 

Long-term debt	$11,377	$13,672	$13,370	$14,828	$17,639	$19,439	$21,725	$23,862
Fully diluted number of shares ...	$2,078	$1,950	$1,842	$1,762	$1,692	$1,607	$1,526	$1,445
Book Value per Share	$3.61	$2.93	$1.90	$0.13	-$2.05	-$3.28	-$4.96	-$6.71

Figures in millions

Applying this to long-term debt forecasts and the number of shares in issue, an astonishing trend appears. The company's book value per share will be-$6.71 by the end of 2015; considering the company has already committed to its buyback plan up to this point, this is almost a certainty.

Philip Morris' liabilities are far exceeding assets and total equity has rapidly declined. Now, I'm not saying that Philip Morris' debt is unsustainable; in fact, it is quite the opposite. Interest costs were covered 12x by EBIT during the first quarter of this year, and debt to EBITDA was only 1.2x at the end of 2012. However, what is concerning is that after Philip Morris has finished spending, what will happen to the debt? The company cannot continue spending indefinitely. It will need to pay down debt, and this will mean a reduction in shareholder returns.   

Elsewhere

In comparison, Altria, which is all around more diversified and financially prudent than Philip Morris, has a much stronger balance sheet with stable net debt, positive shareholder equity and a positive book value per share.  

 Metric

2008 

2009 

2010 

2011 

2012 

2013E 

2014E 

2015E 

Total equity	$2,828	$4,104	$5,227	$3,715	$3,204	$3,746	$4,638	$5,060
Net debt	-$442	$10,089	$9,880	$10,419	$10,978	$10,126	$9,593	$9,443
Fully diluted number of shares ...	2,087.00	2,071.00	2,079.00	2,064.00	2,024.00	2,000.00	1,980.00	1,960.00
Book Value per Share	$1.36	$1.98	$2.51	$1.80	$1.58	$1.87	$2.34	$2.58

Figures in $ except for number of shares

The lower amount of debt gives Altria a much better-looking balance sheet with more financial headroom for sudden surprises or growth through acquisitions. Of course, this will mean slower EPS growth for Altria's investors. Indeed, Altria's EPS growth over the past five years has been 7% compared to Philip Morris' 12%. However, Altria's outlook is more stable; the financial headroom gives the company space to generate cash, raise finance for acquisitions and return more to investors via a dividend. In addition, Altria is significantly more diversified than Philip Morris, and for this reason the company should be around longer than its international peer. 

Shareholder equity

In fact, Altria is the only big US-listed tobacco company that has positive shareholder equity. Well, actually, Reynolds also has positive shareholder equity, but the majority of this is goodwill.  

Reynolds' balance sheet

Metric	Q2 2013
Inventory	$1,026
Trade debtors	$208
Cash	$1,664
Net debt	$3,918
Goodwill	$8,010
Total assets	$15,532
Total equity	$5,096
Total assets ex. goodwill	$7,522
Total equity ex. goodwill	-$2,914

*Figures in millions

Goodwill is an intangible asset and it is often considered to be more of a liability. Certainly any company with a large amount of goodwill on its balance sheet should be carefully scrutinized as accounting standards, write-downs and revaluations can quickly adjust goodwill. Adjust Reynolds' balance sheet to remove the goodwill and the company has a total equity value of -$2.9 billion. 

Bigger problems

Reynolds has a bigger problem than negative equity. The company is facing the loss of 30% of its sales if menthol cigarettes are banned in the US. This issue has recently been reignited again after the FDA opened the discussion to public consultation last month. Meanwhile, Lorillard is facing total bankruptcy if menthol is banned, as nearly 90% of the company's sales come from menthol products.

Loss of menthol predictions

Metric	Q3 2012	Q4 2012	Q1 2013	Q2 2013	Q3 2013	Q4 2013	Q1 2014	Q2 2014
Revenue	$2,117	$2,078	$1,883	$2,179	$2,062	$2,061	$2,060	$2,059
Revenue after the loss of menthol	$1,482	$1,455	$1,318	$1,525	$1,443	$1,443	$1,442	$1,442
EBIT margin	62.30%	47.90%	61.30%	36.00%	55.67%	45.08%	42.57%	40.05%
EBIT	$923	$697	$808	$549	$803	$650	$614	$577
Interest Costs	$56	$64	$68	$71	$74	$80	$84	$88
Interest as a % of EBIT	6%	9%	8%	13%	9%	12%	14%	15%

*Figures in millions

The EBIT figures I have used above are a prediction based on the company's revenue after a 30% loss of revenue. As the table shows, if this were the case, by the half-year 2014, Reynolds would be paying out 15% of EBIT in interest to finance is growing debt pile. Bear in mind also that the company's current dividend commitment runs at $350 million a quarter. Plus, a continuation of buybacks at the current rate of $150 million a quarter indicates that the company will find it hard to exist if menthol products are restricted, something I would not like to have hanging over my investment. 

Conclusion

Borrowing to buy back stock is fine, but one day Reynolds and Philip Morris will have to pay back this debt. With tobacco consumption declining, paying back debt is going to become harder. As a long-term investment, Altria looks to be the best bet.

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