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5 U.S. Housing Booms in 2011

Tags: Best Stocks To Own ,Best Stocks To Own 2012 ,Best Stocks To Own In 2012 ,DMND ,India Stocks ,PG ,Top Stocks In 2012

The U.S. real estate market continues to struggle, but some cities actually saw housing booms of sorts over the past year.

Consider Fort Myers/Cape Coral, Fla.

Long the poster child for Florida's housing bust, the Gulf Coast community's median list prices soared more than 20% during 2011's first 11 months as investors grabbed low-cost homes, according to Realtor.com.

"Like many Florida markets, Fort Myers has experienced a large increase in investor activity, which has driven down inventories and put a floor under prices," says Paul Bishop of the National Association of Realtors, which operates Realtor.com. "As the rest of the national economy stabilizes and picks up, vacation buyers will also look to snap up bargains."

Here's a look at 2011's five best U.S. housing markets, based on increases in Realtor.com's median list prices for each community between January to November of 2010 and January to November of this past year:

Fifth-best market: San Antonio, Texas
Median 2011 price gain: 4.05%
San Antonio's housing benefited from strong population growth, a below-average foreclosure rate and some of the nation's best job gains in 2011.

Manpower Group recently predicted the city will have the best employment increases of any major U.S. metropolitan area during the f! ourth qu arter, with health care and bioscience jobs leading the way.

"More than half of the recent job growth has been in health care -- a stable sector that attracts professionals and skilled workers from all areas of the country," Bishop says. "With strong population growth and gains in employment, household formation in San Antonio has continued at a solid pace."

That helped push the city's median list price up to $169,500 during 2011's first 11 months -- a 4.05% gain from the same 2010 period.

Fourth-best market: Fort Wayne, Ind.
Median 2011 price gain: 5.11%
Fort Wayne's median list price rose more than 5% during 2011's first 11 months, hitting $105,000. Bishop attributes the gains to a combination of affordable home prices and an improving employment picture.

"Fort Wayne is recovering from a significant recession, but has managed to see tally job growth in the past few months," he says. "The unemployment rate is on par with the national average, but the metro area has performed better than the state overall in generating new jobs."

The community, which ranked ninth on Realtor.com's third-quarter list of "Top 10 Turnaround Cities," has also seen an improving foreclosure picture.

The number of foreclosed Fort Wayne homes listed for sale on Realtor.com dropped 19% over the past year, with asking prices on bank-owned homes rising 6.5% due to strong demand and falling supply.

Third-best market: Washington, D.C.
Median 2011 price gain: 5.16% (city), 5.11% (Virginia suburbs)
Median list prices rose more than 5% during 2011's first 11 months in the District of Columbia and Washington's Virginia suburbs.

Median asking prices increased to $369,900 in the District, while Virginia suburbs saw the typical list price rise to $332,970.

Bishop attributes the gains to Washington's large base of federal government jobs.

"The federal government and contractors prov! ide a st able, well-paying block of jobs that has allowed D.C. to weather the recession better than most areas," he says. "Rents have [also] risen strongly, pushing some households to purchase their first home either in the District or in one of the nearby suburbs. "

Second-best market: Shreveport/Bossier City, La.
Median 2011 price gain: 7.01%
This northwest Louisiana community's median list price increased to $168,000 during 2011's first 11 months.

Bishop cites "better-than-average job growth, especially in higher-wage sectors such as manufacturing, mining/energy and construction. Homes remain affordable and with an unemployment rate of just over 6%, the areas has attracted job seekers from other areas of the country."

Historically an oil-and-gas powerhouse, Shreveport /Bossier City has become a tourism and gambling mecca in recent years, with five riverboat casinos and one racetrack. The local economy also benefits from the presence of nearby Barksdale Air Force Base, which has some 9,000 employees.Best market: Fort Myers/Cape Coral, Fla.
Median 2011 price gain: 20.7%
Fort Myers/Cape Coral saw prices drop more than 60% during the housing bust, but has since begun a rebound.

Foreclosure filings are down, median list prices hit $174,900 in 2011's first 11 months and real estate investors are pouring in.

"Underlying all of this is a modest increase in employment and a decline in the unemployment level -- although it's still above 10%," Bishop says.

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Is This Hot Stock a Buy, Sell, or Hold?

Tags: 2012 Silver Stocks ,Banks ,Fed ,Federal Reserve ,Great Silver Stocks ,Great Stocks To Watch 2012 ,Lending ,U.S. Treasury ,Top Stocks In 2012

So far this year, lululemon athletica (Nasdaq: LULU  ) has absolutely trounced the broader market. With the macro environment as precarious as it now stands, the high-end retail segment deserves its fair share of caution.

S&P 500 Stock Chart by YCharts

Considering the yoga guru's healthy run over the past year, is it a buy, sell, or hold?

Buy

• International: lululemon has been putting up major growth, with last quarter's revenue jumping 31% and net profit soaring 50%. Yet the retailer's footprint remains primarily within Canada and the U.S. It has a small presence in Australia with 14 stores, far fewer than the 45 in Canada and the 106 in the U.S.
  
  Five years ago, when management was less experienced, the company unsuccessfully attempted to expand into Japan through a joint venture. Less than two years after the foray, lululemon pulled the plug on the four stores it had in the region since it was occupying a "disproportionate amount of management time." At the same time, it announced that Christine Day would become CEO in June 2008.
  
  Day previously ! spent 20 years at another retail growth company that has since expanded into more than 50 countries, Starbucks, where she led the coffee giant's International Asia Pacific Group. lululemon still has no physical presence in two of the most important international luxury retail geographies: Europe and China. These are areas on which other luxury retailers, like Coach (NYSE: COH  ) and Tiffany (NYSE: TIF  ) , have been focusing.
  
  lululemon has been growing its e-commerce platform, with direct-to-consumer sales jumping 71%. Day attributed some of this strength to growth in Germany, the U.K., and France in Europe, and Hong Kong and Japan in Asia. Building brand awareness through online sales lays the foundation for a renewed retail push into emerging markets, and Day has what it takes for lululemon to succeed this time around.
  
  
• The Apple of apparel: lululemon shares a lot of traits with Apple (Nasdaq: AAPL  ) . The Mac maker is one of my favorite companies to cover, and I see a lot of similarities. Both companies are vertically integrated, which not only boosts margins but also allows the companies to mold the retail customer experience from the moment one sets foot in the store.
  
  This lets them have locations staffed with a knowledgeable sales force, as opposed to having goods sold through third-party retailers whose sellers know little about the dozens of brands on hand. This is a distinct advantage over rival wholesale apparel makers like Under Armour (NYSE: UA  ) . Apple and lululemon boast sales per square foot among the highest in retail.
  
  Both companies are known for trendsetting design and are able to convey the message that you're buying more than a product, you're buying into a lifestyle. That distinction is what has c! reated a cult-like following for lululemon gear, not unlike Apple's. This brand loyalty is the most striking and important likeness, as it also drives the company's premium pricing power and comparable-store sales.

Sell

• Intellectual property: Unlike Apple, lululemon has no intellectual property rights on its technology. The company's suppliers own or control the rights to the fabrics and processes used to manufacture the goods, which allows competitors to freely imitate its yoga attire. There are fakes and counterfeits out there, which can hurt the brand perception. A couple of years ago, Nordstrom (NYSE: JWN  ) even poached a lululemon product manager to help design a competing yoga lineup, Zella. lululemon has little to no legal recourse if competitors choose to blatantly mimic its wares.
  
  
• Inventory: Some Fools find lululemon's growing inventory position a cause for concern. It's generally a bad sign when inventory growth outpaces revenue growth, and lululemon's inventory soared by 77% while sales growth rose by "only" 31%. Inventory management is more art than science. Having too little, like lululemon did throughout much of the year, can mean missing out on sales and unmet customer demand. On the other hand, having too much may result in write-offs down the road if those $98 Back on Track running tights jog in place at storage warehouses.

Hold

• Competition: After lululemon showed other apparel makers that yoga-inspired active gear was fit for growth, rivals have been trying to tap into the market. The Gap (NYSE: GPS  ) bought Athleta in 2008 to spearhead its push. Nike and Under Armour have always been geared toward activewear, but are now drawing inspiration from the yoga trend that lululemon has sparked. Market r! esearche r NPD Group even said, "This trend is 100% driven by lululemon." The company has been managing competition well so far, but the rivalry will be more of a marathon than a sprint.
  
  
• Valuation: Trading at 42 times earnings, lululemon sits at a premium valuation compared to peers. Shareholders like me are already expecting healthy growth going forward. Some analysts have argued that shares are priced for perfection. High-multiple stocks are prone to plunging if their future prospects get called into question.

The verdict
lululemon is still a buy. Its future prospects have never looked better. The company has gained unstoppable momentum and its brand recognition continues to gain traction, which will keep growth coming for years. It has the highest margins among peers, and it has nearly limitless international opportunities.

The inventory balance was $129 million as of Oct. 30, just before Black Friday kicked off the holiday shopping season, which is going swimmingly so far. Building up inventory to meet surging demand is the right thing to do.

I'm expecting lululemon to continue besting rivals, even without patents. Long-term Fools looking for a retail play should give lululemon some serious consideration.

International retail growth in emerging markets is a tremendous opportunity if you know where to look, and it's one reason that lululemon looks so promising. We've just released a brand-new special free report directly from the desk of our chief investment officer that details The Motley Fool's top stock for 2012. The company is positioned to cash in on the explosive growth in emerging markets, and its business model resembles two retail titans you probably visit each week. Check it out now -- it's free.

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Italian Debt Concerns Paint The World Markets Red; Basic Materials Loses Ground

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The U.S. market closed Wednesday's trading on a negative note, a day before an important auction of long-date Italian debt. Italy's strong sale of short-term bonds Wednesday morning initially brought some relief to markets, but concerns about Thursday's more challenging auction eventually hurt market sentiment.

The Dow Jones industrial average lost 1.14 percent or 139.86 points to close at 12,151.49. The Standard & Poor's 500 index was down 1.25 percent or 15.77 points to close at 1,249.66. The Nasdaq Stock Market Inc. composite index lost 1.34 percent or 35.22 points to close at 2,589.98.

Hot Stocks of the Day: NYT, MCP, C, EBS, ABT, NYX

The New York Times Co. (NYSE: NYT) said it will sell 16 regional newspapers spread across the U.S. Southeast and California to Halifax Media Holdings for $143 million in cash as it looks to cut costs and focus on its most important papers and their websites. Shares of NYT were down 1.03 percent, or $0.08, to close at $7.68.

Shares of Molycorp Inc. (NYSE:MCP) fell 13.79 percent, or $3.86, to close at $24.14 after J.P. Morgan Chase & Co. reduced its price estimate to $39 from $57 previously for the owner of rare-earth deposits.

Citigroup, Inc. (NYSE: C) selling its Belgian retail operations to French lender Credit Mutuel Nord Europe ! for an u ndisclosed price. The sale will take place in the second quarter of fiscal 2012. Shares of Citigroup fell 2.71 percent, or $0.73, to close at $26.17.

Emergent BioSolutions, Inc. (NYSE: EBS) said Abbott Laboratories (NYSE: ABT) will terminate its co-development and co-commercialization agreement for the TRU-016 drug, as Abbott told the biopharmaceutical company it is changing its portfolio priorities. Shares of EBT were down 4.07 percent, or $0.70, to close at $16.51. Shares of ABT fell 0.66 percent, or $0.35, to close at $55.88.

NYSE Euronext, Inc. (NYSE: NYX) and Deutsche Boerse have extended the deadline for completion of their planned merger to March 31 next year as they seek to convince European regulators to back the $9 billion deal. Shares of NYX lost 0.64 percent, or $0.27, to trade at $25.99.

Currencies and Commodities:

In the world of currency, the US dollar gained 1.40 percent against the British pound, 1.01 percent against euro.

However, the dollar lost 0.20 percent against the Japanese yen.

Commodities ended the day's trading in a positive note with oil losing 1.78 percent to close at $99.54 per barrel. Natural gas prices were down 1.35 percent to close at $3.07 per million metric British thermal units. Gold prices were down 2.43 percent to close at $1,556.70 per ounce. Silver prices slumped 5.64 percent to settle at $27.12 per ounce. Among major indices, the DJ-UBS Commodity lost 0.53 percent, and the Reuters-Jeffries CRB fell 0.24 percent.

Global Market:

The global markets closed on a losing note today amidst rising concerns about the next Italian debt auction. The Stoxx 600 Europe index gained 0.46 percent to close at 243.03. Germany's DAX was down by 2.01 percent, or 118.49 points to 5,771.27. France's CAC40 was down 1.03 percent or 32.03 points to close at 3,071.08. Great Britain's FTSE 100 fell 0.10 percent or 5.30 points to close! at 5,50 7.40.

In the Asian market, China's Shanghai Composite closed higher by 0.18 percent, or 3.81 points to 2,170.01. Hong Kong's Hang Seng fell 0.59 percent or 110.50 points to 18,518.67. Japan's Nikkei 225 was down 0.20 percent or 16.94 points to close trading at 8,423.62. India's BSE 30 Sensex lost 0.92 percent or 146.10 points to close at 15,727.85.

Sector Scan:

The basic materials sector closed Wednesday's trading as the worst performing sector after losing 2.42 percent during the day. Among major movers in the sector, the Dow Jones U.S. Basic Materials ETF (NYSEArca: IYM) was down 2.41 percent, or $1.57, to close at $63.5. The S&P Global Materials ETF (NYSEArca: MXI) lost 2.37 percent, or $1.36, to close at $56.12. Among major stocks, shares of Newmont Mining Corp. (NYSE: NEM) lost 2.97 percent or $1.82 to close at $59.55. Shares of El Paso Corp. (NYSE: EP) were down 0.72 percent or $0.19 to close at $26.19. Shares of Barrick Gold Corp. (NYSE: ABX) were down 3.01 percent or $1.37 to close at $44.13.

Biggest Gainer and Loser Stocks:

The biggest gainer of the day was Premier Exhibitions, Inc. (Nasdaq: PRXI), which jumped 22.70 percent, or $0.42, to close at $2.27 per share.

The biggest loser of the day was LiveDeal, Inc. (Nasdaq: LIVE), which slumped 23.61 percent, or $0.98, to close at $3.17.

{$end}

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Efficient Market Theory Cannot Apply To Molycorp (MCP, AVL, REE, REMX)

Tags: 2012 Chinese Stocks ,Best Chinese Stocks To Hold ,Best Stocks of 2012 ,Best Stocks To Hold 2012 ,CASC ,Top Stocks In 2012

Molycorp, Inc. (NYSE: MCP) is being punished today on news which some would argue is very mixed.? J.P. Morgan decided to lower its price target and earnings estimates for Molycorp.? The new target is down at $39.00 versus a prior target of $57.00 and 2012 estimates were cut to $2.78 EPS from $4.50 per share.

What is interesting about the news is that China has been reported as cutting its export quotas for the year ahead. The problem is that the levels are still higher than what many investors were expecting.? Further increased production targets from both Lynas?(Australia) and Molycorp are also expected to weigh on prices of rare earths.? It is currently overlooked that Molycorp’s production is mostly booked up for a year (and more from some customers) at this point.

Avalon Rare Earth Metals Inc. (AMEX: AVL) s down “only” 3.1% at $2.50 and Rare Element Resources Ltd. (AMEX: REE) is down 6% at $3.41 on the day with a new 52-week low.? The Market Vectors Rare Earth/Strategic?Metals ETF (NYSE: REMX) is down only 1.2% a $15.01 and its 52-week range is $13.82 to $28.91.

Based upon its valuations, we recently provided a full outlook for 2012 in Molycorp because its stock has been sold down so much from highs.? The short version is that the stock is attractive, but there are some serious caveats.? What price Molycorp truly bottoms out at is truly guesswork.

Investors need to understand one key issue about Molycorp.? It is a euphoria or hypochondriac when it comes to its ! stock.? China has proven to be untrustworthy when it comes to forecasting output versus saber-rattling over what it is willing to export (and at what price).? If China comes back out and says in the first quarter that its rare earth supply quotas are being absorbed too rapidly and that it will not allow exports later in the year, then traders and investors will not bother conducting even a forward P/E analysis in Molycorp shares.? They will just start loading up.

The other side of the coin is that China could cheat on its export quotas.? It would be no surprise, and there is some history to suggest that it could happen.? Does each nation inside OPEC actually stop every barrel of oil exports when they hit the OPEC-mandated quotas?? Sometimes yes, many times no.? When news comes out (if it does) that Chinese companies have sold more rare earths than what was expected, it is only normal to expect investors to sell the shares off without conducting any analysis.

Molycorp is now down over 8% and share hit a 52-week low after breaking under $25.50.? This is the hypochondriac version of the stock… bad headlines kill the stock, regardless of what should have already been priced in.? The market has known for some time that China is not going to be as strict as investors once feared.? Molycorp has also?lost literally two-thirds of its value from the peak of $79.00.?

It is our take that the market has proven over and over in 2011 that it is just not capable of pricing in good news or bad news any longer.? That is exponentially the case for a company in rare earths.? Still, today’s news should have been fairly easy to anticipate.

JON C. OGG

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Currency War Heats Up as Japan Lowers Interest Rates to Devalue Yen

Tags: 2012 Hot Stocks ,DHT ,DRYS ,FRO ,GLNG ,Hot Stocks To Invest In 2012 ,Hot Stocks To Own ,NAT ,SFL ,TNK ,Top Stocks In 2012

In a move designed to jolt its economy back to life and protect its export industries from an international currency war, the Bank of Japan (BOJ) said yesterday (Tuesday) that it would expand its balance sheet and lower its benchmark interest rate to "virtually zero."

The bank cut the overnight call rate target to a range of 0.00% to 0.1%, the lowest level since 2006. It last cut the target rate to 0.1% from 0.3% in December 2008.

Policymakers also will establish a $60 billion (5 trillion yen) fund to buy government bonds and other assets, inflating the balance sheet at a time when U.S. and U.K. central bankers are contemplating doing the same.

The move, labeled "comprehensive monetary easing" by Governor Masaaki Shirakawa and his colleagues, still falls short of a wider expansion of debt purchases sought by some politicians.

"With today's decision, the Bank of Japan paved the path for the next step," Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo told Bloomberg News. "What will be critical will be how foreign-exchange rates move as a result," along with the impact of any additional e! asing by the Federal Reserve, she said.

Business leaders have urged authorities to step up efforts to shield exports from the yen's surge to a 15-year high in September. Officials last month intervened in the currency market for the first time since 2004, selling 2.12 trillion yen to halt the currency's gains.

The central bank may sell yen again at anytime, Joseph Capurso, a foreign- exchange strategist at Commonwealth Bank of Australia in Sydney told Bloomberg.

There is ample evidence the yen's strength is hindering economic growth.

Industrial production unexpectedly declined for a third month and gains in retail sales were smaller than economists' forecast, government figures released last week showed. The overall economy grew just 1.7% in the April- June period, compared to a 5% expansion in the first three months of the year.

Japan's economy will probably contract in the fourth quarter because the government's incentives to subsidize energy efficient cars expired in September, and increased consumer spending due to an unusually hot summer will wane, Masaaki Kanno, a former BOJ official and now chief Japan economist at JPMorgan Chase & Co. (NYSE: JPM) in Tokyo told Bloomberg.

By artificially devaluing the yen, Japan joins a chorus of countries entering what is now being called an "international currency war."

The war already involves China, Japan, Brazil, Korea and even the United States, to name just a few of the main combatants.

The U.S. Federal Reserve has held its benchmark-lending rate down in a record low range of 0.00% to 0.25% for close to two years now in an effort to boost its exports and shore up the economy. And governments from South Korea to Brazil are stepping up attempts to control their currencies as investors pour a record amount of money into emerging markets.

Investors have plowed a record $49.4 billion into emerging-mar! ket stoc k funds this year and $39.5 billion into bond funds, EPFR Global data show. Pacific Investment Management Co. LLC, which manages more than $1 trillion, in April raised its holdings of developing-nation bonds to the most since 2008.

World Bank President Robert Zoellick said yesterday that he sees tensions rising from currency devaluations as nations seek to buoy their economies.

"This war is over the ability to export finished products, to importing nations," Contributing Writer Jack Barnes wrote in yesterday's edition of Money Morning. "It is about keeping your own citizens employed during an extended economic slowdown in global demand, even if that means damaging national relationships. This war will vault the winners into positions of global leadership, while severely penalizing the losers."

Meanwhile, central banks around the world are weighing the need for more stimulus as growth cools.

Federal Reserve Chairman Ben S. Bernanke said this week the Fed's large-scale asset purchases improved the economy and further buying is likely to help more. The European Central Bank (ECB) last week stepped up its government-bond purchases.

But keeping economies afloat through the use of stimulus programs and loose monetary policies comes at a steep price, leaving many countries facing giant fiscal deficits that threaten to overwhelm their ability to fund operations.

The nation's economic future would be endangered if the government does not rein in budget deficits in the years ahead, Bernanke said Monday, and Congress should consider new budgeting rules to try to make that happen, the Washington Post reported.

Bernanke has been vigorously trying to give more momentum to efforts to reduce the budget deficit in the medium to long term, and said it is "crucially important" that fiscal policy be put on a more sustainable path.

He did, howev! er, say "economic conditions provide little scope for reducing deficits significantly further over the next year or two" and that "premature fiscal tightening could put the recovery at risk."

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The 10 Worst Aerospace and Defense Stocks of 2011

Tags:   ,2012 Best Performing Stocks ,Best Performing Stocks To Invest In ,Best Performing Tech Stocks ,Tech Stocks ,Top Stocks In 2012

What a crazy year it's been for investors. The S&P 500 jumped up more than 8% by May, only to turn around and find itself down more than 10% in August, mainly a result of the European debt crisis and Washington's inability to agree on a solution to our debt dilemma. Now, at the end of December, the S&P has fought back and is poised to end the year essentially flat.

While the markets as a whole didn't change much overall for the past 52 weeks, there were certainly companies that had a year to forget in 2011.

Here's a list of the 10 worst performers of 2011 in the aerospace and defense industry.

Company	Percent Return in 2011
Digital Globe	(47.7%)
AAR (NYSE: AIR  )	(27.8%)
National Presto Industries (NYSE: NPK  )	(25.3%)
Alliant Techsystems	(23.4%)
Textron (NYSE: TXT  )	(21.3%)
American Science & Engineering (NYSE: ASEI  )	! (20.8%)< /td>
Esterline Technologies	(18.9%)
CAE	(15.1%)
Embraer (NYSE: ERJ  )	(15.0%)
Elbit Systems??	(13.6%)

Source: S&P Capital IQ. Only includes companies listed on U.S. exchanges that contain a?market capitalization?greater than $500 million. Returns as of Dec. 27.

Defense cuts
Clearly, the big story for aerospace and defense companies is the looming budget cuts that could reduce military spending by nearly $1 trillion over the next 10 years if sequestration cuts are implemented. That is potentially devastating for some of these companies, particularly the smaller defense contractors that are more reliant on their revenue from the Department of Defense.

Luckily for these companies, they do have some major players on their side battling these defense cuts. Defense Secretary Leon Panetta called these cuts a "doomsday scenario," and the DoD is only accounting for a total of $489 billion in cuts over the next decade for its 2013 defense budget (though Washington is the only place that you can use "only" and "489 billion" in the same sentence).

Regardless, it may be unlikely that we'll see a resolution to this until after 2012's presidential elections. Both parties will want to use this as a campaign issue, and that may leave only two months after the election to tackle this issue before $500 billion in automatic cuts are implemented on Jan. 1, 2013.

Small caps struggling
It's not particularly surprising to see many smaller cap defense companies at the top of this list. Four of the six biggest aerospace and defense losers have a market cap of under $1 billion. These companies tend to be more exposed to defense cuts, and a loss of a contract or two can affect t! hem much more than larger, better diversified contractors.

National Presto, which sports a market cap of $670 million, got more than half of its revenue in 2010 from its defense products segment. The stock is down 25% on the year, perhaps due to investors' concerns that the end of the Iraq War and winding down of the war in Afghanistan will affect the company's ammunition sales, which account for such a large percentage of its revenues. Still, the company's dividend yield is 8.5%, and the cheaper stock price may make it attractive for long-term investors.

Opportunity is knocking
So while these companies have been beaten down in 2012, it may be an opportunity to purchase them for cheap. A company like United Technologies (NYSE: UTX  ) , just missing this list after declining 5.9% on the year, is a huge, diversified company that is much more capable of weathering defense cuts. The company gets 20% of its revenues from emerging markets, which have been providing steady growth. The company's Pratt Whitney division is the sole provider of the engines for Lockheed Martin's F-35, the biggest defense contract ever.

Another company that barely missed this list is General Dynamics (NYSE: GD  ) . While the company's stock lost 6.2% of its value on the year, General Dynamics is better diversified than many of its defense contractor peers due to its Gulfstream business jet segment. We'll have to see whether the company's acquisition of Force Protection, completed this month, can contribute to the bottom line.

As defense cuts loom on the horizon, many think 2012 could be a year of consolidation in the aerospace and defense industry. That's something we'll certainly be watching going into 2012.

These defense companies had a lackluster 2011, but if you're looking for a strong outperformer in the year ahead, you're in luck. The Motley Fool has created ! a brand new free report called "The Motley Fool's Top Stock for 2012." It highlights one company that we've picked out for explosive growth ahead. You can get instant access to the name of this company by?clicking here -- it's free.

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Spectrum Pharmaceuticals, Inc (NASDAQ:SPPI) achieved its new 52 week high price of $13.54 where it was opened at $12.78 up 0.38 points or +2.96% by closing at $13.23. SPPI transacted shares during the day were over 2.41 million shares however it has an average volume of 1.19 million shares.

SPPI has a market capitalization $754.77 million and an enterprise value at $585.27 million. Trailing twelve months price to sales ratio of the stock was 4.34 while price to book ratio in most recent quarter was 4.34. In profitability ratios, net profit margin in past twelve months appeared at 25.69% whereas operating profit margin for the same period at 30.83%.

The company made a return on asset of 16.49% in past twelve months and return on equity of 37.51% for similar period. In the period of trailing 12 months it generated revenue amounted to $173.93 million gaining $3.35 revenue per share. Its year over year, quarterly growth of revenue was 204.90%.

According to preceding quarter balance sheet results, the company had $148.90 million cash in hand making cash per share at 2.61. The total of $17.00K debt was there putting a total debt to equity ratio 0.01. Moreover its current ratio according to same quarter results was 2.75 and book value per share was 3.05. !

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated -0.86% where the stock current price exhibited up beat from its 50 day moving average price $10.25 and remained above from its 200 Day Moving Average price $9.24.

SPPI holds 57.05 million outstanding shares with 50.57 million floating shares where insider possessed 12.52% and institutions kept 28.60%.

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Wall Street can’t get anything right. It’s apparently waited until the eighth day to rest.

After seven days of pretty impressive gains, amid an earnings season that’s had a decided tilt to the constructive side, U.S. equities have shown some signs of flagging Wednesday.

Yes, there are some fundamental reasons for the rally to top out in this trading day. The numbers out of Morgan Stanley (MS)didn’t offer anything near the summer-blockbuster thrills the Goldman Sachs (GS)results displayed last week. It’s like going to the multiplex with your heart set on a big-budget action movie only to find it’s sold out and you have no recourse but a romantic comedy. Sure, the director remembered to take thelens cap off the camera and all, but if nothing blows up ….

The quarter out of Wells Fargo (WFC)wasn’t bad at all: earnings beat estimates handily, revenues jumped 28% yearover year – of course, it didn’t ownthe assets of Wachovia this time last year, so that helps – and the bank talked about signs of stabilization in some ofits loan portfolios, and moderation of consumer and small-business losses. Nevertheless, there’s a kind of direct-to-video quality to the bank earnings this week. Sharesof Wells have fallen 5% in premarket.

There’s some stocks ! trading down in response to fundamentals, including Pfizer(PFE), which has fallen 2% after its quarter showed a little sales shortfall and some disappointment with the volume of its Lipitor franchise. There’s others effectively trading on their legacy, such as Boeing (BA), which probably couldn’t win a pie-eating contest at the county fair this week; shares eased nearly 2% after initially responding affirmatively to its results.

And there are some outright winners, including Starbucks (SBUX), which has shown some pluck in the face of the incursion by McDonald’s (MCD)into its caffeine franchise. Starbucks climbed 9%.

But overall, stocks are sagging at the open for the same reason Lili von Shtupp wants to sit down during the dance-hall number in ”Blazing Saddles”:tired.

The Dow Jones Industrial Average (DJI)has been up seven straight trading sessions, and it’s been pretty much a rocket ride the whole way, gaining 9% in that period. The S&P 500 (GSPC)staged one indifferent performance in that time, so it’sstreak has been broken. But it’s nonetheless ahead in six of seven trading days.

All of which isn’t to say that the fate of the bulls has been sealedhenceforth from this day. The Dow is about 85 points away from 9000, and revisiting a niceround number, while not technically significant, could provide another psychological lift to the bulls. Don’t rule it out.

The last half-hour of the trading day has been the bulls’ playground the last several tradingsessions. If the outcome of the trading day is uncertain thirty minutes from the closing bell, chances are the bears will fold their camp and head for the high brush once again.

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EIB¡¯s Carbon Disclosure May Learn From Oil, Standard Bank Says

Tags: Best Silver Stocks ,Best Silver Stocks To Invest In ,Best Stocks To Hold ,Best Stocks To Hold 2012 ,Nasdaq:ULTR ,Ultrapetrol ,Top Stocks In 2012

The European Investment Bank, whichmay have started selling 2013 carbon allowances in a 1.8billion-euro ($2.4-billion) program, may strive for more timelymarket disclosure, said a trader at Standard Bank Plc.

��In the oil market, the U.S. government generallyannounces up to a month in advance when they intend to lendvolume from the strategic reserve and exactly what volume willbe lent,�� Geoff Sinclair, London-based head of carbon tradingat Standard Bank, said by e-mail on Dec. 21. ��Even in emergencysituations they forewarn the market. That is an appropriatelevel of transparency that institutions in the carbon marketcould aspire to.��

The EIB received the permits from the European Commission,the regulator of the world��s largest emissions market at thebeginning of December and has to sell them within 10 months.Prices fell to a record 12 days later amid uncertainty aboutwhether the sales had started. EIB spokesmen including Nick Antonovics didn��t immediately reply to e-mails and calls.

Companies buying 2013 European Union carbon permitsdirectly from the EIB may have ��privileged�� information thatother traders don��t have, according to an emissions tradinglobby group. The lack of public information about thecommencement of the sales means that ��if you are a recipient ofa large volume you are in a privileged position,�� Simone Ruiz,Brussels-based European policy director at the InternationalEmiss! ions Tra ding Association, said Dec. 16.

Selling Privately

The EIB may have begun selling privately the first trancheof 200 million EU permits for the third phase of the EU��semissions trading system, which begins in 2013, to fundrenewable energy and carbon capture projects as part of the EU��sdrive toward a low-carbon economy, according to Orbeo andBloomberg New Energy Finance.

The EIB, whose president is Philippe Maystadt, will receivefees of as much as 45 million euros for its role in helping theEU sell allowances and choose investments, according to a co-operation agreement with the commission. It will get 15 millioneuros, or a fee of 5 euro cents a ton, for selling a total of300 million tons of carbon and managing the proceeds, theagreement shows.

The EIB��s over-the-counter transactions ��will bestructured in a way to ensure best competition and limit anyinformation advantage to the amount executed with each marketcounterpart,�� the bank said in a statement on its websiteupdated Dec. 2.

Strategic Petroleum Reserve

On June 23, the U.S. Department of Energy said it and otherInternational Energy Agency participating nations would releaseoil into the world market from the Strategic Petroleum Reserveto offset disruption in the oil supply caused by unrest in theMiddle East. On June 30, the department said it had receivedbids and on July 11 it said it had awarded contracts for 30.6million barrels.

In the carbon market, the European Commission in Brusselssaid on Dec. 2 it had delivered 300 million metric tons of so-called NER300 phase-three allowances to the EIB, 200 million ofwhich need to be sold by Oct. 2. Sales would start ��soon��after the delivery, according to the bank, which has sincedeclined to confirm whether sales had started. On Dec. 21, theEIB said it will publish on or around Jan. 11 its first monthlyreport on sales of carbon allowances from the reserve.

EU Carbon Falls

EU carbon for 2013 dropped to a record 7.26 euros a metricton on! Dec. 14 on the ICE Futures Europe exchange in London. Thecontract fell 5 percent today to 8.47 euros at 4:57 p.m. on ICE.

The EIB should seek to disclose its interventions in thecarbon market almost as often as they occur, said Jan Pravda,director of Dublin-based CO2 brokerage Carbon Warehouse and aninvestor. ��I don��t see a reason why they should use differentdisclosure rules than the U.S. Federal Reserve,�� he said Dec.21 by e-mail.

Disclosure may be made ��not necessarily every day, butevery time and very quickly, keeping in mind that the marketresponds in minutes to news like this,�� Pravda said. Should theEIB sell or buy, it ��inevitably begins filling the void becausethere is currently no central bank�� for the main global-warmingmarket, EU carbon allowances, he said.

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AuthenTec, Inc. (AUTH) Acquires PeerSec Networks to Strengthen Its Embedded Security Business Segment

Tags: 2012 Silver Stocks ,Best Silver Stocks 2012 ,Best Stocks To Invest In ,Best Stocks To Invest In 2012 ,JPM ,SWEDA ,TELL ,Top Stocks In 2012

AuthenTec Inc. ?(Nasdaq: AUTH), a provider of identity, security, and touch control technologies in the Asia Pacific, Japan, the United States, Canada, and Europe, announced that it has acquired PeerSec Networks, a Seattle-based provider of networking solutions. The PeerSec Networks team and the complete product portfolio, which includes the Matrix? family of leading device security solutions, will become part of AuthTec's Embedded Security business offerings. Financial terms of the transaction were not disclosed.

"We are very pleased to add the PeerSec team, which has extensive experience with embedded development and device management expertise, and their MatrixSSL?, MatrixSSH? and MatrixDTLS? products to AuthenTec. This is a strategic acquisition which adds key secure networking technology that complements our solutions around secure networking by allowing us to provide optimized software toolkits for all the protocols that our hardware IP packet engines support," said Dr. Simon Blake-Wilson, Vice President of AuthenTec's Embedded Security Solutions. "There are tremendous growth opportunities across multiple markets, driven by the need for secure communication. With this strategic acquisition we not only expand our portfolio but are also able to accelerate our product roadmap activities and address new markets."

"We are excited to join the AuthenTec Embedded Security te! am and b uild on the market success of our Matrix family of software products," said PeerSec Networks CEO J Harper. "As part of AuthenTec, we'll be able to leverage their market leading position, channels to top tier customers and synergistic product roadmap to accelerate the momentum of our complementary products."

The new addition of PeerSec Networks helps to complement AuthenTec's pre-existing Embedded Security offering for mobile, multifunction printers and smart grid, and creates new opportunities in the machine-to-machine (M2M) sector. M2M technology allows for both wired and wireless systems to communicate device to device, and is used more commonly in areas such as medical, industrial automation, and telemetry.

PeerSec Networks also adds to AuthenTec's strong intellectual property and technology portfolio by supporting secure network standards, which include Datagram Transport Layer Security (DTLS), Transport Layer Security (TLS), and Secure Sockets Layer (SSL). The combined AuthenTec-PeerSec Network security offering is a comprehensive bundle of secure networking toolkits, which span IPsec, MACsec, SSL, TLS, EPA, SSH, and DTLS security protocols.

PeerSec Networks was founded in 2002 and offers solutions that are currently shipping in trusted computing platforms, networking equipment, secure VoIP phones, Wi-Fi devices and wireless printers. PeerSec Networks' client list includes some of the top leaders in the semiconductor, network and printer industries, such as Toshiba, Gemalto, Motorola Solutions, and Neopost, among others.

Article written by QualityStocks �� Visit www.QualityStocks.net for more emerging growth companies to discover and evaluate.

For Quality Stocks full disclaimer, visit the company's Web site

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Gold trading in low $1,870s, silver trading in mid-$39s

ReneSola Almost Gets Solar Right (SOL)

Tags: 2012 Gas Stocks ,2012 Top Stocks ,Top Stocks of 2012 ,Top Stocks To Own 2012 ,Top Stocks To Own In 2012 ,Top Stocks In 2012

ReneSola Ltd. (NYSE: SOL) just popped up after the Chinese solar player reiterated earnings guidance.? But it is not immune to the ways of the world, and the 2009 guidance looks lite.

The company estimates that fourth quarter 2008 net revenues were $157 million to $159 million.? This translates to a 2008 range of $669 million to $671 million, above the mid-point of its $640 million to $670 million guidance.? First Call estimates are $153.63 million for the quarter and $663.35 million for the year.

For the quarter, ReneSola reached production output of approximately 112 megawatts, and approximately 363 megawatts for the year.? It had guided megawatt production of 340 to 350 for the year.

The company? said average selling wafer price have declined.? Sound familiar to what others are saying?? ReneSola is expecting writedowns of $130 to $140 million against the net value of inventories die to the rapid decrease in market prices.? As a result, ReneSola will report a quarter net loss of $125 to $130 million.

On a longer-term basis, the company sees a range of $650 million? to $700 million for the full-year 2009 revenues.? Unfortunately, First Call estimates are for $759.1 million for this year.? It is putting production output between 620 to 670 MW, but expects to have wafer manufacturing capacity of 825 MW by this July.

JON C. OGG
MARCH 3, 2009

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2012¡äs Big Trade? How to Invest in Oil's Rapid Rise

Tags: Oil Stocks ,Top Performing Oil Stocks To Own ,Top Performing Stocks To Own ,Top Performing Stocks To Own In 2012 ,Top Stocks In 2012

Oil prices gained for a fourth day after U.S. crude supplies dropped the most in a decade. Bloomberg reports that Energy Department data showed stockpiles fell 10.6 million barrels, the largest decrease since February 2001.

As a result, futures rose as much as 0.7% after gaining 1.5% on Wednesday. "New York oil will average a record $100 a barrel next year as the U.S. averts recession, while London-traded Brent will decline from the 2011 mean, according to a Bloomberg News survey of analysts."

Thursday's crude prices for February climbed $0.72 to $99.39 per barrel on the New York Mercantile Exchange. This is up from Wednesday, when contracts increased by $1.43 to $98.67 per barrel.

Overall, crude prices have risen 8.5% this year after climbing 15% in 2010. Prices are up 25% this quarter alone, the biggest gain since the second quarter of 2009.

Investing ideas
So we were wondering, which oil companies have been boosted by bullish sentiment?

To create this list, we started with a universe of about 150 high growth oil companies. To refine the list, we collected data on institutional transactions, and identified the names that have seen significant inflows during the current quarter.

And to further refine the list, we collected data on short-seller trends, and identified the names that have seen a significant decrease in shares shorted during the current month (i.e., short-sellers think the upside of these stocks outweighs the downside)

Sophisticated investors, like hedge! fund ma nagers and short-sellers, think these names are going higher -- do you agree?

List sorted by projected earnings growth. (Click here to access free, interactive tools to analyze these ideas.)

1. Gulfport Energy (Nasdaq: GPOR  ) : Develops, and produces oil and gas in the Louisiana Gulf Coast. Wall Street analysts expect the company's earnings to grow by 43.50% over the next five years. Net institutional purchases in the current quarter at 7.4M shares, which represents about 17.09% of the company's float of 43.29M shares. Shares shorted have decreased from 4.23M to 3.67M over the last month, a decrease which represents about 1.29% of the company's float of 43.29M shares.

2. Approach Resources (Nasdaq: AREX  ) : Engages in the acquisition, exploration, development, and production of oil and gas properties in the United States. Wall Street analysts expect the company's earnings to grow by 34.40% over the next five years. Net institutional purchases in the current quarter at 3.3M shares, which represents about 13.24% of the company's float of 24.92M shares. Shares shorted have decreased from 6.39M to 5.59M over the last month, a decrease which represents about 3.21% of the company's float of 24.92M shares.

3. Rex Energy (Nasdaq: REXX  ) : Operates as an independent oil and gas company in the Appalachian, Illinois, and Denver-Julesburg Basins. Wall Street analysts expect the company's earnings to grow by 33.60% over the next five years. Net institutional purchases in the current quarter at 3.7M shares, which represents about 10.67% of the company's float of 34.69M shares. Shares shorted have decreased from 10.74M to 10.31M over the last month, a decrease which represents about 1.24% of the company's float of 34.69M shares.

4. GeoResources (Nasdaq: GEOI  ) : Eng! ages in the acquisition, reengineering, development, and exploration of oil and gas reserves in the Southwest, Gulf Coast, and the Williston Basin areas of the United States. Wall Street analysts expect the company's earnings to grow by 23.53% over the next five years. Net institutional purchases in the current quarter at 900.9K shares, which represents about 4.54% of the company's float of 19.83M shares. Shares shorted have decreased from 3.64M to 3.36M over the last month, a decrease which represents about 1.41% of the company's float of 19.83M shares.

5. Hornbeck Offshore Services (NYSE: HOS  ) : Operates offshore supply vessels (OSVs), multi-purpose support vessels, and a shore-base to provide logistics support and specialty services to the offshore oil and gas exploration and production industry primarily in the United States and Gulf of Mexico. Wall Street analysts expect the company's earnings to grow by 17.63% over the next five years. Net institutional purchases in the current quarter at 1.6M shares, which represents about 6.55% of the company's float of 24.43M shares. Shares shorted have decreased from 6.54M to 6.14M over the last month, a decrease which represents about 1.64% of the company's float of 24.43M shares.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.

List compiled by Eben Esterhuizen, CFA. Kapitall's Eben Esterhuizen and Rebecca Lipman do not own any of the shares mentioned above. Institutional data sourced from Fidelity, Short data sourced from Yahoo! Finance.

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Is Royal Caribbean the Perfect Stock?

Tags: 2012 Penny Stocks ,Best Penny Stocks ,Best Stocks To Buy For 2012 ,Melco Crown ,MPEL ,NASDAQ:MPEL ,Top Stocks In 2012

Every investor would love to stumble upon the perfect stock. But will you ever really find a stock that provides everything you could possibly want?

One thing's for sure: You'll never discover truly great investments unless you actively look for them. Let's discuss the ideal qualities of a perfect stock, then decide if Royal Caribbean Cruises (NYSE: RCL  ) fits the bill.

The quest for perfection
Stocks that look great based on one factor may prove horrible elsewhere, making due diligence a crucial part of your investing research. The best stocks excel in many different areas, including these important factors:

• Growth. Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line.
• Margins. Higher sales mean nothing if a company can't produce profits from them. Strong margins ensure that company can turn revenue into profit.
• Balance sheet. At debt-laden companies, banks and bondholders compete with shareholders for management's attention. Companies with strong balance sheets don't have to worry about the distraction of debt.
• Money-making opportunities. Return on equity helps measure how well a company is finding opportunities to turn its resources into profitable! busines s endeavors.
• Valuation. You can't afford to pay too much for even the best companies. By using normalized figures, you can see how a stock's simple earnings multiple fits into a longer-term context.
• Dividends. For tangible proof of profits, a check to shareholders every three months can't be beat. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.

With those factors in mind, let's take a closer look at Royal Caribbean.

!

Factor	What We Want to See	Actual	Pass or Fail?
Growth	5-Year Annual Revenue Growth > 15%	7.4%	Fail
?	1-Year Revenue Growth > 12%	12.7%	Pass
Margins	Gross Margin > 35%	34.8%	Fail
?	Net Margin > 15%	8.2%	Fail
Balance Sheet	Debt to Equity < 50%	103.1%	Fail
?	Current Ratio > 1.3	0.40	Fail
Opportunities	Return on Equity > 15%	7.5%	Fail
Valuation	Normalized P/E < 20	14.59	Pass
Dividends	Current Yield > 2%	1.6%	Fail
?	5-Year Dividend Growth > 10%	(7.8%)	Fail
?	?	?	?
?	Tota l Score	?	2 out of 10

Source: Capital IQ, a division of Standard & Poor's. Total score = number of passes.

With only two points, Royal Caribbean looks like it's sailing into shark-infested waters. The cruise line may offer customers a one-stop shop for entertainment and travel, but its financials may leave you feeling seasick.

Royal Caribbean is the operator behind Celebrity Cruises and has a fleet of about 40 ships that offer perks like rock-climbing walls, surf simulators, and even ice-skating rinks. With peers taking shots at their own demographic niches -- Carnival (NYSE: CCL  ) goes after the budget-conscious while Disney (NYSE: DIS  ) hits young families -- Royal Caribbean has focused on the active crowd. But that hasn't stopped the line from also treading on competitors' turf, with its own partnership with DreamWorks Animation (Nasdaq: DWA  ) to feature characters like Shrek on Royal Caribbean ships.

Unfortunately, cruise lines do best in a strong economy, and that's been sorely lacking lately. In addition, uprisings in areas like Egypt have soured some potential travelers from going abroad for cruises, and high fuel costs are hitting ship operators' bottom lines. In addition, Royal Caribbean itself announced in July that it would have to make some accounting restatements in past periods, spooking investors.

With cruise lines fighting one another with ever more attractive services, companies like onboard spa operator Steiner Leisure (Nasdaq: STNR  ) have a lot of leverage to extract profits. That, along with the unfavorable macroeconomic trends that the company faces, is likely to keep Royal Caribbean from sailing into a perfect sunset for the foreseeable future.

Keep sear! ching
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you'll go a long way toward improving your investing prowess and learning how to separate the best investments from the rest.

Click here to add Royal Caribbean to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Finding the perfect stock is only one piece of a successful investment strategy. Get the big picture by taking a look at our "13 Steps to Investing Foolishly."

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Tags: 2012 Best Stocks ,2012 UnderValue Stocks ,Best Stocks To Hold In 2012 ,Best UnderValue Stocks To Hold ,SM ,Top Stocks In 2012

Crude oil prices have risen this year, although they have been tapering off in the past couple of months. Pump prices have been driven by the price differential between Brent crude and WTI crude, and integrated oil companies that could take advantage of the differential made substantial margins on refining WTI crude and selling the products as if higher priced Brent were the refineries' feedstock. The differential reached more than $25/barrel earlier this year, but has fallen back to about $8-$9/barrel currently.

The fortunes of any oil & gas producer depends on the price of the commodity, and crude prices in the US have been rising, while natural gas prices have been no better than flat for the year. And while crude prices could rise to an average of more than $105/barrel in 2012, natural gas prices are not expected to rise much next year as abundant supplies are likely to increase even more.

We've looked at several oil & gas companies, including the three US-based supermajors and a number of independents with market caps above $10 billion: Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), ConocoPhillips (NYSE: COP), Range Resources Inc. (NYSE: RRC), Tesoro Corp. (NYSE: TSO), Pioneer Natural Resources Co. (NYSE: PXD); Anadarko Petroleum Co. (NYSE: APC), Chesapeake Energy Corp. (NYSE: CHK), Apache Corp. (NYSE: APA), and Occidental Petroleum Corp. (NYSE: OXY). We've looked at the past year's stock price performance and compared that with median target prices as reported b! y Thomso n Reuters in an effort to find the stocks we think will be top performers in 2012.

Exxon Mobil Corp. (NYSE: XOM) has a median price target of $92 and a current price of around $84.62, for a potential upside of 8.7%. That's the lowest potential gain of any of the stocks in this survey, but combined with a share price gain of about 15% in the past 12 months and a dividend yield of 2.3%, Exxon's upside is stronger than the simple calculation. The stock's 52-week trading range is $67.03-$88.23, so the stock is trading within about 5% of its 52-week high. Crude oil price hikes provide substantial benefits to Exxon's shares, and those price hikes could add $10-$20/barrel to the company's revenues in the coming year.

Chevron Corp. (NYSE: CVX) has a median price target of $122.50 and a current price of around $106.76, for a potential upside of 14.7%. Of the three supermajors, Chevron's potential gain is the largest, it's share price gain of nearly 16.5% in the past year is the largest, and its dividend yield of 3% is second in among the three giants. The stock's 52-week trading range is $86.68-$110.01. Chevron has been the strongest bet among the three US supermajors this past year, and there's little reason to expect that to change in 2012. A new 52-week high is close, and current events in the Middle East could push shares to a new high before the new year.

ConocoPhillips (NYSE: COP) has a median price target of $82 and a current price around $72.24, for a potential upside of about 13.5%. Conoco trails the other two supermajors in share price gain for the past 12 months, posting a rise of just 6.35%. The company's dividend yield is highest of the supers, at 3.7%. The stock's 52-week trading range is $58.65-$81.80. Conoco just sold assets in the North Sea for $330 million as it continues to try to bring its debt back under control. Of the three supermajors, this is the least likely to achieve its potential upside.

Range Resources Inc. (NYSE: RRC) has a median price target of $77.50 and a! current price around $61.55, for a potential upside of 26%. But Range's share price has jumped more than 36% in the past year, but the company pays a paltry dividend yield of just 0.3%. The stock's 52-week trading range is $44.20-$77.24. With a market cap of right around $10 billion, Range is often mentioned as a takeover target from one of the supers or another mining company that wants to diversify into energy. Range holds about 800,000 leased acres in the Marcellus shale play, which is located close to the massive northeast US market.

Tesoro Corp. (NYSE: TSO) has a median price target of $28 and a current price around $23, for a potential upside of about 22%. The refiner's share price has gained more than 25% this year, but the company pays no dividend. The stock's 52-week trading range is $17.43-$29.61. Unlike the other major US refiner, Valero Energy Corp. (NYSE: VLO), Tesoro has made no major acquisitions recently, apparently satisfied to play the hand it's got. That's probably smart, considering Valero shares got whacked in the past 12 months, down more than -9%. But as the Brent/WTI differential closes, no refining stock is a good bet for 2012, regardless of the potential upside calculation.

Pioneer Natural Resources Co. (NYSE: PXD) has a median price target of $115 and a current price around $75.75, for a potential upside of 31.4%. The company's shares gained a meager 2.2% in the past 12 months and the dividend yield is just 0.1%. The stock's 52-week trading range is $58.63-$106.07. Like Range Resources, Pioneer carries a market cap of right around $10 billion. Most of the company's assets are in Texas, and most are oil. Either as a takeover target or as a liquids producer, Pioneer is a solid play.

Anadarko Petroleum Co. (NYSE: APC) has a median target price of $100 and a current price of $75.75, for a potential upside of 32%. The share price gained more than 9% in the past year and the company pays a dividend yield of just 0.5%. The stock's 52-week trading range is $57.11-$85.50. Unt! il fairl y recently, Anadarko's assets have been exclusively onshore in the US, but its acquisition of Kerr-McGee gave it a position in the Gulf of Mexico and the company has also acquired assets offshore of Africa. The potential upside here, combined with the company's share price performance last year, make Anadarko a solid prospect for gains in 2012.

Chesapeake Energy Corp. (NYSE: CHK) has a median target price of $35.50 and a current price around $22.87, for a potential upside of 55%. Shares have lost more than -11% in the past 12 months and the company pays a dividend yield of 1.5%. The stock's 52-week trading range is $22-$35.95. Chesapeake's shares are near the 52-week low today following a report from Reuters on how the company used shell companies to secure leases to drilling rights in Michigan and potential lawsuits springing from the practice. On the other side, at least one analyst thinks Chesapeake offers a "compelling risk/reward" opportunity. That awe-inspiring upside potential is probably out of reach though. Chesapeake holds a lot of debt, and any hiccup in the financial markets could raise havoc with the company.

Apache Corp. (NYSE: APA) has a median price target of $134 and a current price of $88.63, for a potential upside of 51.2%. The company's share price has fallen more than -25% in the past year and it pays a dividend yield of 0.7%. The stock's 52-week trading range is $73.04-$134.13. Several directors and company officers have been buying shares in the past month or so. Just under half of the company's liquids production comes from its US assets, so the rising prices for WTI are positives for Apache. The large potential upside is probably not going to be closed, but the company's shares could easily improve by 25% in 2012.

Occidental Petroleum Corp. (NYSE: OXY) has a median price target of $117.50 and a current price around $93.69, for a potential upside of 25.4%. The company's share price has fallen more than -4% in the past 12 months and it pays a dividend yield of 2%.! The sto ck's 52-week trading range is $66.36-$117.89. Oxy's assets include liquids-rich fields in southern California, where pricing for crude and liquids is higher than anywhere else in the country. Other assets in Texas and elsewhere onshore in the US will drive revenue and profit at Oxy this year, and the stock's potential upside is not an impossible goal.

Overall, among these oil & gas stocks, Chevron would be the pick among the supermajors, and either Range Resources or Pioneer among the independents, primarily on the possibility of a takeover. Refiners face a tough 2012 and Conoco's decision to split off its refining into a separate company won't help matters.

Paul Ausick

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Four Stocks to Fit in a Basket of Negative Enterprise Value with Certain Profitability: GENC, ABAT, TRGT, TSRI

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There is a wide variety of strategies in value investing, based on the three pillars which Benjamin Graham has described: Mr. Market, Circle of Competence and Margin of Safety. It can be net-net positions, where the stock is trading less than the liquidation value. It can be based on the relative multiples valuation compared to peers, which Buffett called ��Generals: Relatively Undervalued" when he was running his partnership. It also can be investing in the great moat businesses at fair value, etc. Generally, it can be divided into buying into the businesses which selling for less than either (1) asset value or (2) earning power.

As earning power is very hard to define, and it depends on the predictability of the business as well as the moat around that, not many investors can pick a great business without spending a lot of time doing the ��scuttlebutt approach�� which can help them really understand the good side, the bad side and the unbeatable side of any businesses. That is why it seems to me that many Buffett wannabes will start out picking cheap quantitative stocks and get some diversification.

The key concept ��Buying a stock is like buying a piece of the business,�� means you, as the purchaser of the business, have to bear all the liabilities the business has, and can use all the cash and assets it has on hand. So we have the definition of ��negative enterprise value,�� meaning that the buyer theoretic! ally get s paid to purchase the business. I wrote a piece on the basics of enterprise value or market capitalization, and which one investors should choose.

Normally negative enterprise value businesses are not very profitable businesses. So a basket of negative enterprise value businesses along with profitability can make a good portfolio. Currently, I have found four stocks that match the screen of negative enterprise value with a certain level of profitability.

Genco Industries (GENC): This stock has been mentioned several times on GuruFocus, and I personally had written on it in the article, ��Genco Industries: $15 Million in Cash and the Company for Free.�� GENC is the leading manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels and environmental control equipment. The company has two manufacturing sites, one in the U.S. and one in the UK. It is quite profitable, experiencing a loss in only one out of ten years. Currently the enterprise value is -$28.2 million, with the net margin of 13.2%.

Advanced Battery Technologies (ABAT) is a company which develops, manufactures and distributes rechargeable PLI battery cells using lithium cobalt oxide anodes. The products are used in electric vehicles, mine lamps, walkie-talkies and consumer electronics. The manufacturing site of the company in Harbin, China and administrative office is based in New York. Although with the market capitalization is $42 million, but with the cash level of $74 million and debt-free, the enterprise value is -$32 million. ABAT, since 2006 got positive growing net income, from just $6 million in 2006 to $37 million in 2010. The return on equity for the past 05 years has been mainly in the north of 20%, no single year is under 20% level.

Another candidate is involved in pharmaceuticals, which relies on the medicine research and development of neuronal nicotinic receptor for the treatment of nervous system. The company is called Targacept (TRGT! ), and i t has been also mentioned quite a number of times in our site as well. It got $213 million in cash and cash equivalent, $4 million in debt and now around $180 million market capitalization. So the enterprise value of Targacept reached -$37 million. The profitability is on and off, it just got $11 million profit in 2010, generating operating cash flow for that year of $138 million. The stock just got bought up to 16% of the company by one of our gurus, Seth Klarman. Readers can read further at my previous post on Targacept position.

Last but not least, TSR Inc. (TSRI) is in the business of providing contract computer programming services to its clients. The company supply technical computer personnel to companies to supplement the in-house staff IT of the clients. Net cash and short-term investment reached more than $8 million, approximates the market capitalization, and the company��s debt free. So the enterprise value is close to zero. However, it can be in the portfolio of negative enterprise value because of the consistent 10 year even low but positive net profit.

This is the subjective viewpoint of the author, and it is not the recommendation to buy, hold or sell the stocks mentioned in this analysis. Anyone who wishes to buy, hold or sell the stocks has to do his/her own analysis at his/her own risk.

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H. J. Heinz (NYSE:HNZ) is best known for its ketchup, but it manufactures a wide range of food products and claims to have 150 of the?No. 1?or?No. 2?brands worldwide. From frozen potatoes to soup and baby food, the company constantly realigns its portfolio of brands to compete better internationally.

Such recent action includes an 80% stake in Coniexpress S.A. Industrias Alimenticias, a leading Brazilian manufacturer of the Quero brand of tomato-based sauces, tomato paste, ketchup, condiments and vegetables. By becoming a controlling shareholder of a Brazilian company Heinz can leverage its product line and use the local distribution network to better position itself in Latin America��s most populous emerging market. There are similar moves in the Chinese market, as well as divestitures of slower growing brands.

Although the company had to cut its dividend in 2003 as part of a restructuring, management took it upon itself to increase the dividend as profitability returned. Now Heinz pays a quarterly dividend of 48 cents a share, which is higher than it paid investors before the time of the dividend cut. The increased profitability due to the numerous reorganizations of business lines in the past?eight years suggests that this highest rate of quarterly dividend is sustainable, with a 59% payout ratio at last check.

While earnings have been stagnant overall due to continued restructuring in 2011, this is less relevant for income investors as they can participate in a company with serious up! side exp osure to growth in emerging markets. In the U.S., volumes fell 2.4% in the latest reported quarter and were down 4.9% in the Asia-Pacific region (due to troubles in Australia).

Still, sales volume jumped 5.6% in the rest of the world, clearly showing where the biggest potential lies. The company has been selling smaller packages of its favorite foods in the U.S. (and other developed markets), as penny-pinching consumers trade down toward private label goods; they still end up paying the same for good stuff, but when presented in smaller packages it looks cheaper.

This trend is likely to accelerate due to better demographics in emerging markets and faster GDP growth, which translates to faster rising incomes for emerging market consumers. China and India combined have 2.4 billion people, and many of them still live below the poverty line. As 8%-9% GDP growth in both countries translates into more people becoming middle class consumers, Heinz�� sales in emerging markets are likely to keep rising much faster than those in developed markets.

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According to Reuters, manufacturing weakness in the US has raised new fears of recession.

Reuters reports that the most recent Fed minutes indicate a willingness to cut rates again.

Reuters reports that US retail sales rose 14% in the week after the holiday.

The Wall Street Journal writes that Chinese stock gains may be undercut by slowing earnings growth.

The Wall Street Journal reports that GM (GM) stuck with a relatively positive tone for 2008 sales.

The Wall Street Journal writes that NetFlix (NFLX) and LG Electronics will offer a box which allows movies to be downloaded to TVs.

The Wall Street Journal writes that Dell (DELL) is moving slowly into retail sales of PC to keep customers who buy its products on the web.

The Wall Street Journal reports that Lenovo is launching a consumer notebook aimed at products from HP (HPQ) and Apple (AAPL).

The New York Times writes that the Weather Channel is for sale and may bring $5 billion.

The FT writes that Qualcomm (QCOM) said its count loss to Broadcom (BRCM) would effect short-term earnings.

The FT writes that fears about the falling dollar are pushing up prices of oil and gold.

Barron’s writes that shares of Kroger are attracting insider buying.

Douglas A. McIntyre

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Steve Jobs’ Leave Of Absence

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Steve Jobs has finished what he needs to do for Apple (AAPL) in 2007. The iPhone and iTV initiatives are launched. The new MacBooks are out. iPod sales will undoubtedly set a record in the calendar fourth quarter of 2006.

The back-dating options probe, expecially as it relates to grants to Mr. Jobs, is not going away. On Friday, the US Attorney in San Francisco opened a criminal investigation into the matter. The Apple board has exonerated Jobs, but it is hard to see how they could have done otherwise without a dead body and a video of the crime. He is arguably more important to the fate of his company than any other large-cap  CEO in the world.

Which is precisely why Jobs should take a leave while the matter is resolved and remove any hint that his finger may be on the scales as the investigation proceeds.

Giving Jobs the benefit of every doubt, perhaps he knew nothing about the changes in options paperwork and all of the nastiness went on among people well below him in the chain of command. It should not take long to figure that out, and, in the meantime, he would do his shareholders a favor.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

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A bad economy isn't the only thing plaguing this retailer

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While many retailers remain on pins and needles about how their holiday receipts will stack up, there��s no mystery at Sears Holdings (NASDAQ:SHLD). The company that operates Sears and Kmart department stores has been losing customers and bleeding red ink forever — and the past few months were no exception.

So Sears wasted no time announcing a huge cutback on its store count. Between 100 and 120 Sears and Kmart stores will be closed. The company says $140 million to $170 million will be made as the inventory is shuffled out at fire-sale prices.

But more disturbing isn��t the store closures — it��s the context. Sears is losing money, and no profits are expected anytime soon. It makes you wonder if this really is just the beginning of the end for the once-iconic department store.

How bad is it? Well, consumers should know first-hand just by visiting their local Kmart or Sears locations. Fallen flagship brands like Craftsman tools and Kenmore appliances used to be quality names for many Americans but have little currency with shoppers today.

Even more damning is the tarnish on the stores themselves — aging stores ideally could use a fresh design and at the least need a good cleaning and repair job.

Hedge fund manager Edward Lampert and his cronies merged Sears with Kmart in 2005. Lampert began focusing on online boondoggles such as an online marketplace in the vein of eBay (NASDAQ:EBAY) rather than acknowledging the power of its ! legacy b rands at physical stores. You can��t fault the logic, since online retail is crushing brick-and-mortar sales. But the result is online efforts have failed to bear fruit yet, and existing stores present customers with a rather disappointing experience.

It��s a lose-lose situation that has cost Sears dearly.

That��s just from a taste perspective, however. The harshest reality for the company is the poor sales numbers that have plagued Sears and Kmart for some time. Sears Holdings has lost money in five of the past six quarters. Even worse: November marked a stunning 19 straight quarters of sales declines!

The icing on the cake is that Wall Street estimates for the company project consecutive quarterly losses in each period through all of fiscal 2013. That means if you��re being charitable, Sears will continue to lose money for another year-and-a-half.

But let��s be honest — the reality is that forecasters aren��t looking past 2013 because that��s too far down the road. There��s a very good chance that a year from now, the outlook might be just as grim.

Sears has yet to determine which stores will be closed, or how many jobs will be lost. Management is casting the store closures as an unfortunate event prompted by a bad economy — and that is indeed partly true. Many big retailers like Wal-Mart (NYSE:WMT) have struggled to find their way as consumers have cut back and are more savvy about getting the best deals. It might sound counterintuitive that the king of low-priced retail would be hurting, but Wal-Mart has suffered for a few years now as smaller discounters like Dollar General (NYSE:DG) connect with customers and sometimes even undercut pricing at the big guys.

It is indeed challenging for retailers. But Sears is in a class of its own when it comes to losing customers and losing money in the retail space. And it��s worth noting that some retailers are booming.

Sales at the company have dropped every single year sinc! e Lamper t took over in 2005. No wonder shares are off almost 50% year-to-date in 2011 and almost 70% from the 2010 peak of SHLD stock.

To be clear, bankruptcy might not be an immediate concern. Sears doesn��t have the crippling debt load that drives companies directly into bankruptcy. But it��s certainly on its way. Unless Sears can streamline its operations and find a good way to use funds from this inventory liquidation, it��s likely we will see only more store closures in the future and a race to the bottom for this once-storied retail brand.

Not everyone is bearish on Sears. Jonathan Berr thinks a new focus on licensing deals — such as a Sears partnership with the Kardashians — can help the company.

But it��s going to take more than star power to right this sinking ship.

Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace??.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. Jeff Reeves holds a position in Alcoa, but no other publicly traded stocks.

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