Dividend Stocks To Buy For 2014, Best Dividend Stocks For 2014: 2013

Tuesday, December 31, 2013

Top 10 China Stocks To Own For 2014

It has been a bullish quarter, at long last, for gold (NYSE: GLD) and silver (NYSE: SLV).

The exchange traded fund for gold, SPDR Gold Shares, is up for the last week, month, and quarter of market action. It is the much the same story for the exchange traded fund for silver, iShares Silver Trust. There is also a bullish outlook for publicly traded companies in the sector such as Barrick Gold (NYSE: ABX), Wishbone Gold PLC (PINK: WISHY), and Goldcorp (NYSE: GG).

In an interview on this site with Richard Fulden, the Executive Chairman of Wishbone Gold PLC, it was stated that, "India and China are the largest gold buyers worldwide. There has been a recent move away from derivative gold products (such as Exchange Traded Funds) and a move into directly holding the metal. Industrial demand only accounts for about 3% of world purchases so the major buyers of gold are doing so for investment."

Top 10 China Stocks To Own For 2014: TAL Education Group(XRS)

TAL Education Group, together with its subsidiaries, provides K-12 after-school tutoring services in the People?s Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, English, Chinese, physics, chemistry, and biology. The company provides tutoring services through small classes; personalized premium services, such as one-on-one tutoring; and online course offerings. As of May 31, 2011, it operated a network of 199 physical learning centers in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Wuhan, Nanjing, Hangzhou, Chengdu, and Xi?an; and eduu.com, an online education platform for online courses. The company also offers education and management consulting services, as well as sells software. It operates under the Xueersi brand. The company was founded in 2003 and is headquartered in Beijing, China.

Advisors' Opinion:

[By Lisa Levin]
TAL Education Group (NYSE: XRS) shares rose 4.30% to $20.86. The volume of TAL Education Group shares traded was 318% higher than normal. TAL Education's PEG ratio is 1.14.

Top 10 China Stocks To Own For 2014: Euro/Yen(EJ)

E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company in China. It provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate promotional event services, real estate online services, and real estate investment fund management services. The company offers primary real estate agency services to real estate developers. Its secondary real estate brokerage services include offering advisory services on choices of properties; accompanying potential buyers on house viewing trips; drafting purchase contracts; negotiating price and other terms; and providing preliminary proof of title, as well as coordinating with the notary, the bank, and the title transfer agency. The company also provides real estate information services comprising data subscription services and data integration services; and real estate cons ulting services, including land acquisition consulting, development consulting, marketing consulting, and comprehensive solution consulting. In addition, it offers real estate advertising services consisting of advertising design and sales in print and other media; and real estate promotional event services, including securing venues, hiring caters and other various service providers, formulating event themes, and inviting speakers and guests for real estate promotional events. Further, the company provides real estate online services, including real estate news, information, property data, and access to online communities to real estate consumers and participants through local Web sites; and involves in real estate investment fund management activities that consist of investments in China?s real estate sector. E-House (China) Holdings Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

[By Belinda Cao]
E-House China Holdings Ltd. (EJ), a real estate brokerage, gained 9.2 percent to $9.70, extending it advance to a third week. Its American depositary receipts retreated 3.1 percent Sept. 20 from the highest level since May 2011.
[By Roberto Pedone]
One under-$10 name that's quickly pushing within range of triggering a big breakout trade is E-House China (EJ), which is engaged in providing real estate agency and brokerage services in the primary and secondary markets and real estate consulting and information services in the People's Republic of China. This stock is off to a monster start in 2013, with shares up sharply by 131%.

If you take a look at the chart for E-House China, you'll notice that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $8.35 on the downside and $10.24 on the upside. Shares of EJ are starting to spike sharply higher today right above that $8.35 low, and this stock is now quickly moving within range of triggering a big breakout trade above the upper-end of its recent range.

Traders should now look for long-biased trades in EJ if it manages to break out above some near-term overhead resistance levels at $9.74 to $10.19 a share, and then once it clears its 52-week high at $10.24 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 1.11 million shares. If that breakout triggers soon, then EJ will set up to enter new 52-week-high territory above $10.24, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15 a share.

Traders can look to buy EJ off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $8.35 a share, or around its 50-day moving average at $7.96 a share. One can also buy EJ off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
[By Jake L'Ecuyer]
Shares of E-House (China) Holdings (NYSE: EJ) got a boost, shooting up 7.63 percent to $10.78 after the company reported Q3 results.

SINA (NASDAQ: SINA) was also up, gaining 12.98 percent to $85.76 after the company reported a strong rise in its Q3 profit.

5 Best China Stocks To Invest In Right Now: China Life Insurance Company Limited(LFC)

China Life Insurance Company Limited provides life, annuities, accident, and health insurance products in China. Its individual life insurance and annuity products consist of whole life and term life insurance, endowment insurance, and annuities. The company also engages in the writing of life insurance business. In addition, it offers group life insurance products, including group annuity products, and group whole life and term life insurance products to enterprises and institutions, as well as universal life products. Further, the company provides short-term insurance products comprising short-term accident insurance and short-term health insurance products; accident insurance products, such as individual accident insurance and group accident insurance; and health insurance products, including defined health benefit plans, medical expense reimbursement plans, and disease specific plans. It distributes its products through its direct sales representatives and exclusive ag ents, as well as through intermediaries comprising insurance agencies and insurance brokerage companies, non-dedicated agencies, bancassurance arrangements, travel agencies, and hotels and airline sales counters. The company was founded in 1949 and is based in Beijing, China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company.

Advisors' Opinion:

[By WWW.MARKETWATCH.COM]
LOS ANGELES (MarketWatch) -- Chinese stocks advanced early Monday, with strong gains for insurers helping support the market. Hong Kong's Hang Seng Index (HK:HSI) improved by 0.5% to 22,816.23, with the Hang Seng China Enterprises Index up 0.9%, while the Shanghai Composite (CN:SHCOMP) added 0.3%. China Life Insurance Co. (HK:2628) (LFC) added 2.5% in Hong Kong and 1.6% in Shanghai after swinging to a quarterly profit, while strong earnings for rival Ping An Insurance Group Co. (HK:2318) (PNGAY) (CN:601318) sent its shares up 2.2% in Hong Kong and 1.7% in Shanghai. Among other Hong Kong-listed financials, China Construction Bank Corp. (HK:939) (CICHF) (CN:601939) rose 1.1% despite posting earnings that trailed average expectations, while China Merchants Bank Co. (HK:3968) (CIHHF) (CN:600036) climbed 1.3% ahead of its own quarterly report due later in the day. Zoomlion Heavy Industry Science & Technology Co. (HK:1157) (ZLIOF) shot 7.8% higher after a Chinese journalist admitted to taking bribes to write reports damaging to the company. News reports had accused the major contruction-machinery firm of acc

Top 10 China Stocks To Own For 2014: Qihoo 360 Technology Co. Ltd.(QIHU)

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Its principal products include 360 Safe Guard, an Internet security product for Internet security and system optimization; 360 Anti-Virus, an anti-virus application to protect users? computers against trojan horses, viruses, worms, adware, and other forms of malware; and 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company?s platform products comprise 360 Safe Browser, a Web browser; 360 Personal Start-up Page, a default homepage of 360 Safe Browser and a key access point to popular and preferred information and applications; 360 Application Store, a key access point to securely obtain and manage software and applications; and 360 Safebox, a solution that protects users against thefts of personal account information. It also provides online advertising services, including online marketi ng services and search referral services; and Internet value-added services comprising the operation of Web games developed by third-parties, remote technical support, and cloud-based services. The company was formerly known as Qihoo Technology Company Limited and changed its name to Qihoo 360 Technology Co. Ltd. in December 2010. Qihoo 360 Technology Co. was founded in 2005 and is based in Beijing, the People?s Republic of China.

Advisors' Opinion:

[By Louis Navellier]
China’s Qihoo 360 Technology (QIHU) also made headlines today after its third-quarter earnings announcement. Net income more than tripled to $44.5 million, and revenues more than doubled to $187.9 million. Adjusted EPS beat the consensus estimate by $0.10, or 27%. Even so, shares fell after Stifel Research (SF) downgraded the stock to hold (despite the fact that Morgan Stanley raised its target price for QIHU to $95.30). As for me, I’m with Morgan Stanley (MS)� on this and consider .
[By Belinda Cao]
Oberweis China Opportunities Fund (OBCHX), the best-performing U.S.-based fund investing in Chinese stocks, said Internet companies from NQ Mobile Inc. (NQ) to Qihoo 360 Technology Co. (QIHU) will extend a rally after jumping more than three-fold this year.
[By Rick Munarriz]
China's leading search engine has come under fire after the surprising success of Qihoo 360's� (NYSE: QIHU ) �rival platform, which debuted last summer.
[By Andrew Tonner]
Although the market's been on a tear over the last 12 months, few companies have been hotter than Qihoo 360 (NYSE: QIHU ) �-- and for good reason. The company, which began as an anti-virus software firm, has morphed itself into one of the most powerful Internet companies in all of China. In fact, over the last year, the company's done an impressive job leveraging its popular browser franchise as a means of attacking the lucrative search market. So, with this company making all the right moves, and its stock price rising accordingly, have investors missed out on the party? In this edition of our Ask a Fool series, Fool contributor Andrew Tonner breaks down Qihoo and gives his pick for the best buy in this space.

Top 10 China Stocks To Own For 2014: ChinaEdu Corporation(CEDU)

ChinaEdu Corporation, together with its subsidiaries, provides educational services to the online degree programs of universities in the People?s Republic of China. It also offers online tutoring services to primary and secondary school students; operates primary and secondary schools; and markets international English language curriculum programs to established learning institutions, as well as international polytechnic programs to vocational schools in China. The company?s online degree programs offer associate and bachelor?s degree programs, including accounting, marketing, finance, business administration, international business, law, civil engineering, education, computer science, literature, project management, marketing, and administrative management. These online degree programs primarily target working adults. Its services also include academic program development, technology services, enrollment marketing, recruiting, student support services, and finance operati ons. The company provides technical, recruiting, and other services for the online degree programs of 27 universities; and technology support services to 7 additional universities that are awaiting regulatory approval to launch their online degree programs. As of December 31, 2010, it served approximately 311,000 online degree programs students, as well as approximately 51,450 students in other businesses. ChinaEdu Corporation was founded in 1999 and is based in Beijing, the People?s Republic of China.

Top 10 China Stocks To Own For 2014: Perfect World Co. Ltd.(PWRD)

Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West ; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.

Advisors' Opinion:

[By Paul Ausick]
Before markets open Tuesday morning we are scheduled to hear results from Perfect World Co. Ltd. (NASDAQ: PWRD), Urban Outfitters Inc. (NASDAQ: URBN), Barnes & Noble Inc. (NYSE: BKS) which announced a new video app today, Best Buy Co. Inc (NYSE: BBY) which is included in our preview of this week�� results from retailers, Dick�� Sporting Goods Inc. (NYSE: DKS), Home Depot Inc. (NYSE: HD), J.C. Penney Co. Inc. (NYSE: JCP), and Trina Solar Ltd. (NYSE: TSL).

Top 10 China Stocks To Own For 2014: Bitauto Holdings Limited (BITA)

Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People?s Republic of China. The company offers subscription services to new automobile dealers that enable them to list pricing and promotional information on its bitauto.com Website and partner Websites, and to interact with consumers through its virtual call center, as well as provides advertising service to dealers and automakers on its bitauto.com Website. It also offers listing services to used automobile dealers, which enable them to display used automobile inventory information through its ucar.cn Website and partner Websites; and advertising services to used automobile dealers and automakers with certified pre-owned automobile programs on its ucar.cn Website. In addition, the company provides digital marketing solutions, including Website creation and maintenance, online public relationship, online marketing campaigns, and advertising agent service s. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

[By Evan Niu, CFA]
What: Shares of Bitauto (NYSE: BITA ) have plunged today by as much as 18% after the company reported first-quarter earnings.

So what: Revenue in the first quarter added up to $38.6 million, which translated into non-GAAP profits of $3.7 million. The top and bottom lines were up 34.6% and 29.1% relative to a year ago, but investors were still left wanting more. The results were in line with Bitauto's guidance.
[By Kevin Marder]
Chinese company Bitauto Holdings (BITA) offers car pricing and reviews on its www.bitauto.com site. The consensus of Wall Street analysts look for earnings growth of 71% in 2013 and another 30% in 2014. These estimates have been most recently revised upward. Revenue growth has come in at 36% or more in each of the last eight quarters.

Top 10 China Stocks To Own For 2014: General Steel Holdings Inc. (GSI)

General Steel Holdings, Inc., through its subsidiaries, engages in the manufacture and sale of steel products in the People's Republic of China. It offers hot-rolled carbon and silicon steel sheets primarily for use in the production of small agricultural vehicles and other specialty markets; spiral-weld pipes for the energy sector primarily to transport oil and steam; and high-speed wire and reinforced bar products for the construction industry. The company sells its products primarily to distributors. General Steel Holdings, Inc. was founded in 1988 and is headquartered in Beijing, the People?s Republic of China.

Top 10 China Stocks To Own For 2014: CNOOC Limited(CEO)

CNOOC Limited, through its subsidiaries, engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. The company?s oil and natural gas properties are located in offshore China, which include Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea, as well as in Indonesia, Iraq, and other regions in Asia; and Oceania, Africa, North America, and South America. As of December 31, 2010, the company had net proved reserves of approximately 2.99 billion barrels-of-oil equivalent, including approximately 1.92 billion barrels of crude oil and 6,458.3 billion cubic feet of natural gas. It also provides bond issuance services; and has a joint venture with Bridas Energy Holdings. CNOOC Limited was founded in 1982. The company is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. CNOOC Limited is a subsidiary of China National Of fshore Oil Corporation.

Advisors' Opinion:

[By Rich Smith]
In a deal being described as its biggest international bond offering ever, and the largest dollar bond offering in all of Asia in at least the past decade, Chinese oil major CNOOC (NYSE: CEO ) announced Friday that it will issue $4 billion worth of dollar-denominated bonds. These include:�$750 million worth of 1.125% guaranteed notes due 2016,�$750 million worth of 1.750% guaranteed notes due 2018,�$2 billion in 3.000% guaranteed notes due 2023, and�$500 million in 4.250% guaranteed notes due 2043.
[By WWW.MARKETWATCH.COM]
LOS ANGELES (MarketWatch) -- Hong Kong stocks inched lower early Friday, with mainland Chinese banks and energy shares among the weak spots. The Hang Seng Index (HK:HSI) lost 0.1% to 22,824.44, with the Hang Seng China Enterprises Index down 0.4%, even as the Shanghai Composite (CN:SHCOMP) rose 0.1%. Concerns about the fiscal health of the top mainland lenders loomed again over the shares, with Bank of China Ltd. (HK:3988) (BACHY) down 0.9%, Bank of Communications Co. (HK:3328) (BKFCF) 1.3% lower, and China Construction Bank Corp. (HK:939) (CICHF) off 0.7%. In the energy sector, Cnooc Ltd. (HK:883) (CEO) gave up 0.9% after posting a 17% gain in third-quarter revenue but not reporting its profit for the period. Its peers also lost ground, as China Petroleum & Chemical Corp. (HK:386) (SNP) and PetroChina Co. (HK:857) (PTR) fell 1% apiece. On the upside, China Unicom Hong Kong Ltd. (HK:762) (CHU) added 1.6% after announcing a gain of more than 50% for its quarterly profit compared to a year earlier. Rival China Mobile Ltd. (HK:941
[By Arjun Sreekumar]
Initially, exploration activity in the Arctic was confined primarily to Western oil majors. But recently, the China National Offshore Oil Corporation, better known as CNOOC (NYSE: CEO ) , became the first Chinese oil company to make a play for Arctic oil. Let's take a closer look at why China has become increasingly interested in the Arctic frontier's vast resource potential.

Top 10 China Stocks To Own For 2014: Baidu Inc.(BIDU)

Baidu, Inc. provides Chinese and Japanese language Internet search services. Its search services enable users to find relevant information online, including Web pages, news, images, multimedia files, and blogs through the links provided on its Websites. The company also offers online community-based products and entertainment platforms; an instant messaging service; and a consumer-oriented e-commerce platform. In addition, it designs and delivers online marketing services and auction-based P4P services that enable its customers to reach users who search for information related to their products or services. The company serves online marketing customers consisting of small and medium sized enterprises, large domestic corporations, and Chinese divisions or subsidiaries of multinational corporations primarily operating in the medical, machinery, education, franchising, electronic products, e-commerce, ticketing, tourism, information technology, consumer products, real estate, entertainment, and financial services industries. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

[By Sally Jones] ng>Impacts Portfolio: -3.74%
Shares Owned: 1,830,950
Up 65% over 12 months, Baidu Inc. has a market cap of $55.41 billion; its shares were traded at around $158.46 with a P/E ratio of 40.00. The company does not pay a dividend.
Guru Action: As of Sept. 30, 2013, Robert Karr reduced his position by 20.09%, selling 460,400 shares at an average price of $128.96, for a gain of 22.8%.
Overall, Karr has averaged a 66% gain on 2,291,350 shares bought at an average price of $95.14 per share. He gained 23% on 460,400 shares sold at an average price of $128.96 per share.
Check out more gurus very active in the third quarter. No insiders were found.
Track historical share pricing, revenue and net income:

Google Inc. (GOOG)
Impacts Portfolio: -3.07%
Shares Owned: 247,064
Up 55% over 12 months, Google Inc. has a market cap of $345.72 billion; its shares were traded at around $1,034.81 with a P/E ratio of 27.60. Google Inc. does not pay a dividend.
Guru Action: As of Sept. 30, 2013, Robert Karr reduced his position by 14.17%, selling 40,800 shares at an average price of $887.31, for a gain of 16.5%.
Overall, Karr has averaged a 110% gain on 417,717 shares bought at an average price of $493.50 per share. He gained 91% on 369,543 shares sold at an average price of $541.78 per share.
Check out more gurus trading and insiders selling.
Track historical share pricing, revenue and net income:
Mead Johnson Nutrition Company (MJN)
Impacts Portfolio: -2.68%
Shares Owned: 1,371,900
Up 24% over 12 months, Mead Johnson Nutrition Company has a market cap of $16.91 billion; its shares were traded at around $83.69 with a P/E ratio of 27.00. The dividend yield is 1.60%.
Guru Action: As of Sept. 30, 2013, Robert Karr reduced his position by 22.36%, selling 395,000 shares at an average price of $74.97, for a gain of 11.8%.
Over four quarters, Karr aver
[By Daniel Sparks]
Up about 50% over the past six months, Baidu (NASDAQ: BIDU ) has rapidly recovered from the Street's pessimism that seemed to drown the stock from its previous highs. The stock was certainly a buy six months ago, but is it still a buy today? Fool contributor Daniel Sparks thinks so. In the following video, he highlights three reasons why.

Deutsche Bank Has Seven Top Oil Services and Equipment Stocks for 2014

As 2013 comes to an end, oil prices and natural gas prices have surged due to demand and extremely cold weather across the nation. With exploration and production (E&P) companies hitting all-time usage levels in the major shale plays around the country, the top oil field services names may be poised to have an outstanding 2014.

In a new research report, the oil services analysts at Deutsche Bank are clearly very positive on the sector for next year. Although, the market has been negative to energy stocks as fears of weakening U.S. oil prices remain pervasive, the outlook for activity next year continues to improve. The Deutsche Bank team continues to think North American leverage will outperform next year, but fighting sentiment is a losing battle at the moment. So they are focused on stocks with events and catalysts for 2014.

Here are the seven top stocks in the sector to buy for 2014 from Deutsche Bank. The first four are the high conviction stocks to buy and have among the highest price targets on Wall Street.

Baker Hughes Inc. (NYSE: BHI) is a top four name in oil field services. The company reported solid third-quarter earnings. Cash increased by $245 million to $1.37 billion as debt decreased by $334 million to $4.58 billion, sequentially. While Baker Hughes is a $25 billion oilfield services company, it never hurts to improve your balance sheet. The company is well positioned for the shale revolution and for the possible return of natural gas drilling activity. Investors are paid a 1.1% dividend. The Deutsche Bank price target is $86. The Thomson/First Call price target is set at $64. Baker Hughes closed Monday at $54.45.

Halliburton Co. (NYSE: HAL) is another one of the four names Deutsche Bank is very excited about. The company stands to benefit from continued robust levels of domestic drilling activity and a pickup in international markets. Management believes the company can deliver earnings per share of $6 by 2016, double the level from 2012. Investors receive a 1.2% dividend. The Deutsche Bank price target is posted at $84, and the consensus is much lower at $64. Halliburton closed Monday at $50.40.

Hercules Offshore Inc. (NASDAQ: HERO) is the top small cap name to buy for 2014. The company provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry worldwide. The company operates through five segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats and International Liftboats. The Deutsche Bank price target is posted at $10, and the consensus number is at $9.50. Hercules closed Monday at $6.39.

Nabors Industries Ltd. (NYSE: NBR) makes the top four list of the top stocks to buy at Deutsche Bank and is their top mid cap name. The company cites Nabors’ better than average fleet, including a large number of high-end rigs in the United States and strong international business to drive growth. The Deutsche Bank price target for the stock is $27, and the consensus is posted at $17. Investors are paid a 1% dividend. Nabors closed Monday at $16.87. The Deutsche Bank target is again the highest on Wall Street and would represent a 60% gain from current levels.

Patterson-UTI Energy Inc. (NASDAQ: PTEN) is another name in which the Deutsche Bank team sees tremendous upside. With strong cash flow generation and continued share repurchases to help as activity levels accelerate, the stock has solid potential for investors at this level. Deutsche Bank has a $30 price target and the consensus figure is at $23.50. Patterson closed Monday at $25.47. Investors are paid a 0.8% dividend.

Pioneer Energy Services Corp. (NYSE: PES) is another small cap name that could be a huge home run for investors in 2014. The company provides contract land drilling services and production services to independent and oil and gas exploration and production companies in the United States and Colombia. The company operates in two segments, Drilling Services and Production Services. The Deutsche Bank price target is a whopping $14, and the consensus is much lower at $9.50. Pioneer Energy closed Monday at $8.

Schlumberger Ltd. (NYSE: SLB) is another mega cap oil field services stock to buy for 2014. Strong offshore drilling activity combined with a seasonal rebound in Western Canadian activity have driven Schlumberger’s recent growth. Going into 2014, Schlumberger sees five markets providing strong growth: Russia, Sub-Saharan Africa, the Middle East, China and Australia. Shareholders are paid a 1.4% dividend. The Deutsche Bank price target is $124, and the consensus is lower at $110. Schlumberger closed Monday at $89.17.

Some of the Deutsche Bank price targets are among the most aggressive on Wall Street. Investors with little or no exposure to energy-related names should consider adding some of these top stocks to a well-rounded portfolio. As the shale boom continues in the United States, many of these top names should benefit in 2014.

Monday, December 30, 2013

Is Chesapeake Energy a Good Portfolio Play?

With shares of Chesapeake Energy (NYSE:CHK) trading around $27, is CHK 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

Chesapeake is involved in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. As the world continues to grow, energy is at the root of this expansion. In order for countries to build infrastructure, machinery requires energy products and services. Look for this company to capitalize on the growth of the world as it provides a product that is essential to development.

An overhaul of the operations at Chesapeake Energy in 2013 is expected to pay dividends for the Oklahoma City-based company in 2014. Doug Lawler took over as the company's chief executive in June and immediately began making some changes to the company's free-spending ways. It's starting to pay off, and the general outlook for the company is positive. Chesapeake's margins are improving and per-unit production costs are decreasing. Capital expenditures have been reined in, and assets have been shed. And those efforts will continue in 2014, analysts project. Chesapeake also is expected to rely more heavily on operating cash flows to fund drilling spending — a stark contrast to the Chesapeake of old when racking up debt was the norm.

T = Technicals on the Stock Chart Are Strong

Chesapeake Energy stock has been in a range over the last couple of years. The stock is currently trading sideways. 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, Chesapeake Energy is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

CHK

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Chesapeake Energy options	30.18%	96%	93%

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
January Options	Flat	Average
February 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 very 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 Chesapeake Energy’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Chesapeake Energy look like and more importantly, how did the markets like these numbers?

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-1229.17%	-48.84%	118.18%	-29.94%
Revenue Growth (Y-O-Y)	63.87%	37.95%	41.55%	29.74%
Earnings Reaction	-6.78%	7.08%	-1.79%	-0.24%

Chesapeake Energy has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been pleased with Chesapeake Energy’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Chesapeake Energy stock done relative to its peers, BP (NYSE:BP), ConocoPhillips (NYSE:COP), Anadarko Petroleum (NYSE:APC), and sector?

	Chesapeake Energy	BP	ConocoPhillips	Anadarko Petroleum	Sector
Year-to-Date Return	64.74%	15.63%	20.90%	6.54%	27.95%

Chesapeake Energy has been a relative performance leader, year-to-date.

Conclusion

Chesapeake Energy provides access to valuable and essential energy products around the world. The company is expected to pay dividends for the Oklahoma City-based company in 2014. The stock has been in a range over the last couple of years and is currently trading sideways. Over the last four quarters, earnings have been mixed while revenue figures have been rising, however, investors in the company are pleased about the most recent earnings announcement. Relative to its peers and sector, Chesapeake Energy has been a year-to-date performance leader. Look for Chesapeake Energy to continue to OUTPERFORM.

How To Trade The News

Two savage bear markets within the first decade of this millennium have made many investors question the wisdom of adhering to a "buy and hold" strategy for stocks. Although equity markets may display a sustained upward trend over long time periods, it's the intermittent tailspins – such as the 50% plunges endured by most major markets during the 2008-09 global credit crisis – that test the fortitude of any investor.

Trading the news, then, should be an integral component of your investing strategy. While day traders may trade the news several times in a trading session, longer-term investors might do so only occasionally. Regardless of your investing horizon, learning to trade the news is an essential skill for astute portfolio management and long-term performance.

Classifying News News can be broadly classified into two categories:

Periodic or recurring – News that is issued at regular intervals. For example, interest rate announcements by the Federal Reserve and other central banks, economic data releases and quarterly earnings reports from companies all fall into this category. Unexpected or one-time – This category includes "bolts from the blue" such as terrorist attacks or sudden geopolitical flare-ups, as well as abrupt market developments on the economic or financial front like the threat of debt default by an indebted nation. Unexpected news is more likely to be adverse than favorable. News can be specific to a particular stock or something that affects the broad market.

Trading the News Let's use a few examples to demonstrate these concepts:

1. Federal Reserve rate announcement: The Federal Open Market Committee's (FOMC) interest rate announcements have always been among the biggest market-moving events. But in 2013, the Fed's moves assumed unparalleled importance, as investors waited with bated breath to see if the central bank would continue to inject $85 billion monthly into the U.S. economy through bond purchases (the third round of quantitative easing or QE3), or if it would slow the pace of these purchases. Given that U.S. equity indices were at record highs in October 2013, an investor with a substantial long position in U.S. stocks who was looking to hedge potential downside risk could have done the following right after the Fed's Oct. 30 announcement:

Trimmed positions in highly profitable equity positions to take some money off the table. With market volatility near multi-year lows at that time, the investor could have purchased puts either on specific stocks in the portfolio or on a broad market index like the S&P 500 or Nasdaq 100. Purchasing puts gives the investor the right to sell a stock for an agreed-upon price at some future time. If the security's market price falls below the agreed-upon price, the investor gains by selling at the higher contractual price. Bought a certain amount of inverse exchange traded funds (ETFs) – which move in the opposite direction of the broad market or a specific sector – to protect portfolio gains. While these reactive moves would typically be carried out after the Fed announcement, a proactive investor could implement these same steps in advance of the Fed statement. This reactive or proactive approach to an important event or piece of news, of course, depends on a number of factors, such as whether the investor has a high degree of conviction about the market's near-term direction, risk tolerance, trading approach (passive or active) and so on.

2. U.S. employment situation summary (the "jobs report"): In terms of economic data releases, few are more important than the U.S. jobs report. Traders and investors closely watch the employment level, since it has a substantial influence on consumer confidence and spending, which accounts for 70% of the U.S. economy. Jobs numbers that miss economists' forecasts are generally interpreted as signs of incipient economic weakness, while payroll numbers that surge past forecasts are seen as strength. In the summer of 2013, investors were unfazed by payroll numbers that came in below expectations, in the belief that any signs of economic weakness would cause the Fed to keep QE3 going. The investor playbook for trading jobs data in 2013 could be easily based on predictable market reaction, which was as follows:

Payroll numbers below expectations: Implies that the Fed would be forced to keep interest rates low for an extended time period. The impact on specific asset classes was typically as shown in the table:

Asset/Instrument	Immediate Impact
Equities	↑
Bonds	↑
US dollar	↓
Volatility	↓
Gold	↔ (no clear trend)
Commodities	↔ (no clear trend)

Payroll numbers above expectations: Implies that the Fed may scale back the pace of asset purchases, which could send bond yields and market interest rates higher.

Asset/Instrument	Immediate Impact
Equities	↓
Bonds	↓
US dollar	↑
Volatility	↑
Gold	↔ (no clear trend)
Commodities	↔ (no clear trend)

An investor could use these market reactions to formulate an appropriate trading strategy to implement either in advance of the jobs report or after its release.

3. Earnings reports: It is generally advisable to have a trading strategy in advance of an earnings report, because a stock can bounce around in a much wider range post-earnings, as compared to the swings in an index after a data release. Imagine having a huge short position in a stock and watching it soar 40% in the after-market because its earnings were much better than expected.

Trading earnings reports may not be required for every stock in one's portfolio, but it may be necessary for a stock where the investor has a fairly large position, whether long or short. In this case, the investor needs to weigh the merits of leaving the position unchanged over the earnings report or making changes prior to it. Factors that should play a part in this decision include:

The current state of the overall market (bullish or bearish); Investor sentiment for the sector to which the stock belongs; Current level of short interest in the stock; Earnings expectations (too high or comfortably low); Valuations for the stock; Its recent and medium-term price performance; Earnings and outlook reported by the competition, etc. For example, an investor with a 15% position in a big-cap technology stock that is trading at multi-year highs may decide to trim positions in it ahead of the earnings report, so that it now constitutes 10% of the portfolio. This may be preferable to taking the risk of a steep decline post-earnings if the stock is unable to meet investors' high expectations. An alternative option could be to buy puts to hedge downside risk. While this would enable the investor to leave the position unchanged at 15% of the portfolio, this hedging activity would incur a significant cost.

It may also make sense to trade an earnings report for a stock where the investor does not have a position but (rightly or wrongly) has a high degree of conviction. Key points to note are – avoid taking an unduly large position, and have a risk mitigation strategy in place to cap losses if the trade does not work out.

4. Bolts from the blue: What should you do if the screens suddenly flash news of a terrorist attack somewhere in the United States, or war looks imminent between two nations in the volatile Middle East? While this is one time when you may need to be proactive to protect your investment capital, a kneejerk reaction to sell everything and take to the hills may not be the best course of action. Over the years, financial markets have demonstrated a great deal of resilience by taking in stride the occasional terrorist attack, such as the bomb blasts at the Boston Marathon's conclusion on April 15, 2013.

During times of geopolitical uncertainty, it may be prudent to rotate out of more speculative instruments and into higher-quality investments, and consider hedging downside risk through options and inverse ETFs. While you should scale back your equity exposure if it is uncomfortably high, bear in mind that in the majority of cases, the short-term corrections caused by unexpected geopolitical or macroeconomic events have proved to be quintessential long-term buying opportunities.

Tips for New News Traders Know the dates and times of important events: Information on the dates and times of key market events such as FOMC announcements, economic data releases and earnings reports from key companies is readily available online. Know this "calendar of events" in advance. Have a strategy in place beforehand: You should plot your trading strategy in advance, so that you are not forced into making rash decisions in the heat of the moment. Know your exact trading entry and exit points before the action begins. Avoid kneejerk reactions: Rather than kneejerk reactions, make rational investing decisions based on your risk tolerance and investment objectives. This may require you to be a contrarian on occasion, but as successful long-term investors will attest, this is the best approach for successful equity investing. Cap your risk levels: Avoid the temptation of trying to make a fast buck by taking a concentrated long or short position. What if the trade goes against you? Have the courage of your convictions: Assuming you've done your homework, consider adding to an existing position if the stock plunges to a level below its intrinsic value, or conversely, selling out to take profits in a stock that is wildly popular at the moment. See the big picture: Often, investor reaction to a development may not be as expected. For example, Canadian natural gas company EnCana (ECA) slashed its dividend by 65% on Nov. 5, 2013. While a dividend cut of this magnitude would normally send a stock plunging, EnCana actually rallied 3% on the day. This was because investors viewed the dividend cut as a cash-saving measure, and they also approved the company's plans to sell shares in a new royalty company. Don't be swayed by market sentiment: This is a corollary to some of the earlier tips, and it is important enough in its own right. Being overly swayed by market sentiment may result in too many instances of buying high – when euphoria runs rampant – and selling low, when gloom and doom prevails. Consider the plight of the many hapless investors who were so spooked by the unrelenting tide of bad news in 2008 that they exited their equity positions near the lows, incurring massive losses in the process. Numerous investors failed to get back into equities after that horrendous experience, and in the process, missed out on a stunning gain of 166% in the S&P 500 from March 2009 to October 2013. Know when to "fade" the news: Many times it is as important to ignore the news or "fade" it as it is to trade it. Best Buy (NYSE:BBY) is a great example of a stock where ignoring the steady drumbeat of bad news, and focusing instead on its valuations and turnaround prospects, would have paid off handsomely. The stock was trading at a decade-low $11.20 in December 2012, as it was losing market share to online rivals like Amazon.com (Nasdaq:AMZN) and aggressive retailers such as Wal-Mart (NYSE:WMT). But as of Nov. 6, 2013, it was the third-best performer on the S&P 500 for the year, having nearly quadrupled in price as profits surged thanks to cost-cutting measures and competitive product pricing. The Bottom Line Trading the news is crucial for positioning your portfolio to take advantage of market moves and boost overall returns.

Airline stocks soar on AMR, US Airways deal

NEW YORK — Shares of airline stocks took off Tuesday after the U.S. government settled a lawsuit and agreed to allow American Airlines and US Airways to merge, paving the way for the creation of the world's largest airline.

The terms of the deal also provided an opening for low-cost airlines to gain a foothold and fly more flights out of some of the nation's biggest airports.

With the merger deal now slated to be completed in December, pending approval from the U.S. Bankruptcy Court, shares of American Airlines' parent company jumped $2.38, or 26%, to an even $12. US Airways shares ended up 26 cents, or 11%, to $23.53.

Earlier this year, the U.S. Justice Department and a handful of states blocked the deal on antitrust grounds, arguing that a merger of the two airlines would hurt consumers by reducing competition and causing airfares to rise.

SETTLEMENT: Justice settles merger lawsuit with AA, US Airways

FIRST TAKE: Deal eases concerns air fares could spike

AMR, the parent of American Airlines which filed for bankruptcy protection nearly two years ago, and US Airways have said all along that the merger is necessary for them to remain competitive in an industry that has undergone massive consolidation in recent years.

Tuesday's settlement was cheered by investors for a number of reasons. For one, it erased fears that the merger would never come to fruition, clearing away much of the uncertainty that has plagued the two airlines since the deal was placed in limbo, says Jim Corridore, an airline equity analyst at S&P Capital IQ.

"American Airlines' shares enjoyed a relief rally as the stock had been starting to discount the possibility that there would be no merger," Corridore says. "Plus, investors are now more fully valuing the merger vs. it not happening at all."

The pending merger also turned out to be bullish for low-cost airlines, such as Jet Blue and Southwest Airlines. The reason: As part of the settlement, the newly merged airlines will hav! e to give up takeoff and landing slots in major airports, including Washington D.C.'s Reagan National Airport, New York's LaGuardia Airport, as well as airports in Boston, Chicago, Dallas, Los Angeles and Miami.

JetBlue surged 47 cents, or 6.1%, to $8.16. And Southwest Airlines saw its stock jump 22 cents, or 1.2%, to $18.03.

"There are only so many slots," says Corridore.

But by giving up dozens of slots at Reagan National and La Guardia, low-cost carriers now have a chance to move in, keeping fares from spiking and maintaining service to smaller communities that are often abandoned when larger carriers focus on only the most profitable routes.

"It gives those low-cost airlines that want to increase capacity and revenues access to business they would not have ever seen," says Basili Alukos, an analyst at Morningstar. "They are large markets, not third-tier cities. Revenue will basically shift from one carrier to the next."

Continental Holding United Airlines rose $1.48, or 4.2%, to $36.79. Delta Air Lines climbed 66 cents, 2.4%, to $28.13.

Sunday, December 29, 2013

U.K. hacking prosecutor: Murdoch execs had affair

LONDON — In a blockbuster declaration at Britain's phone hacking trial, a prosecutor said two of Rupert Murdoch's former senior tabloid executives — Rebekah Brooks and Andy Coulson, later a top aide to Prime Minister David Cameron — had an affair lasting at least six years.

Prosecutor Andrew Edis made the disclosure Thursday during Coulson's and Brooks' trial on phone hacking and other charges, the first major criminal case to go to court in the hacking saga that has shaken Britain's political, judicial and media elite.

Brooks, Coulson and six other people are now on trial, including Brooks' current husband Charles. All deny the various charges against them, which range from phone hacking to bribing officials for scoops to obstructing police investigations.

Edis said the relationship between Brooks and Coulson was relevant to the hacking case because it showed they trusted one another and shared intimate information.

"Throughout the relevant period, what Mr. Coulson knew Mrs. Brooks knew, and what Mrs. Brooks knew Mr. Coulson knew," Edis said.

Edis said the affair began in 1998 and lasted about six years. If his timeline is correct, the affair ended before Coulson became Cameron's top communications director, which began after Cameron's election in 2010. Coulson started working for Cameron in 2007, when Cameron became leader of Britain's Conservative opposition party.

The affair covered the period when Brooks was the top editor of Murdoch's News of the World tabloid and Coulson was her deputy. Brooks edited the paper from 2000 to 2003, then went on to edit its sister paper, The Sun, and later became the chief executive of Murdoch's British newspaper division. Coulson edited the News of the World from 2003 to 2007.

The affair covered the crucial period in 2002 when the News of the World hacked the phone of murdered teenager Milly Dowler. Brooks has long denied knowing about that hacking. When the Dowler hacking case became public in 2011, the outrage in Brit! ain was so great that Murdoch shut down the 168-year-old paper.

Edis said a February 2004 letter from Brooks showed there was "absolute confidence between the two of them in relation to all the problems at their work." He said the letter appeared to have been written by Brooks in response to Coulson's attempt to end the relationship.

"You are my very best friend. I tell you everything. I confide in you, I seek your advice," Brooks wrote, according to Edis. "Without our relationship in my life I am really not sure I will cope."

Edis said the affair was uncovered when police searched a computer found at Brooks' home in 2011 as part of the hacking investigation.

It's not clear whether the letter was ever sent.

Brooks married soap-opera star Ross Kemp in 2002. They later divorced and she married horse trainer Charles Brooks in 2009.

In his opening arguments Thursday, Edis said News of the World journalists, with consent from the tabloid's top editors, colluded to hack the phones of politicians, royalty, celebrities and even rival reporters in a "frenzy" to get scoops.

He said the "dog-eat-dog" environment led to routine lawbreaking that was sanctioned by those in charge of the Murdoch-owned tabloid: editors Rebekah Brooks and Coulson.

Jurors were shown email exchanges involving private investigator Glenn Mulcaire and News of the World news editor Ian Edmondson — one of the defendants — detailing the 2006 hacking of former government minister Tessa Jowell, royal family member Frederick Windsor and one-time Deputy Prime Minister John Prescott, who was the subject of a major kiss-and-tell story from a mistress.

Mulcaire also hacked the phones of two journalists at the rival Mail on Sunday tabloid who were working on their own story about the Prescott affair, the prosecutor said.

"In the frenzy to get the huge story … that's what you do," Edis said.

Edis also played a recording of Mulcaire "blagging" — seeking information about a voicemai! l passwor! d from a service provider using a false name. He said Mulcaire — an "accomplished" blagger and hacker — made the recording himself, and also recorded some of the voicemails he hacked.

The prosecutor said the emails, the recordings and pages from Mulcaire's notebooks provided "very clear evidence" of hacking so widespread that senior editors must have known about it.

Edis said Mulcaire was paid almost 100,000 pounds a year under a contract that started in 2001 and ended when he was arrested in 2006 for hacking the phones of royal aides. He and the tabloid's royal editor Clive Goodman were briefly jailed and for years, Murdoch's media company maintained that hacking had been limited only to that pair.

That claim was demolished when the Dowler case became public in 2011. Murdoch's company has since paid millions in compensation to scores of people whose phones were hacked.

Rebekah Brooks, Coulson, Edmondson and former managing editor Stuart Kuttner all deny charges of phone hacking. The trial is expected to last roughly six months.

Mulcaire has pleaded guilty, along with three former News of the World news editors.

Edis said there are few records of what Mulcaire was paid to do by the newspaper, but that senior editors must have known of his illicit activity.

"The question is, did nobody ever ask, 'What are we paying this chap for?'" he said. "Somebody must have decided that what he was doing was worth an awful lot of money. Who was that?"

He said Rebekah Brooks, who edited the News of the World when Mulcaire was put on retainer "was actively involved in financial management" and sent editors stern emails about keeping costs down.

Under Coulson, who succeeded her as editor, Mulcaire's fee was increased to 2,019 pounds a week.

Edis said there was no evidence that Mulcaire's fees were ever questioned.

"You would question it — unless you knew all about it," Edis said.

ExxonMobil: All Good But the Refining; Credit Suisse Upgrades Hess

Shares of ExxonMobile (XOM) have gained 1.8% to $90.41 today after the energy behemoth reported better-than-expected earnings.

Agence France-Presse/Getty Images

Reuters has the details on Exxon’s numbers:

Third-quarter oil and natural gas output rose 1.5 percent from a year earlier to 4 million barrels oil equivalent per day, helped by the start-up of new projects, the Irving, Texas, company said.

Natural gas from Australia’s Kipper Tuna Turrum project and accelerated output from projects in Nigeria and Canada also contributed to the higher production.

Profit in the third quarter was $7.87 billion, or $1.79 per share, compared with $9.57 billion, or $2.09 per share, a year earlier.

Analysts on average had expected $1.77 per share, according to Thomson Reuters I/B/E/S.

“Weaker margins, mainly in refining, decreased earnings by $2.4 billion,” Exxon said in a statement.

S&P Caiptal IQ’s Michael Kay says not to worry about refining:

Q3 EPS of $1.79, vs. $2.09, falls $0.08 short of our view, on upstream price realizations. Downstream and chemicals were better than we projected. Overall oil and gas production met forecasts and the mix was more favorable, as oil volumes (up 3%) beat and natural gas (down 1%) fell. XOM highlights its 41-rig onshore U.S. program, noting production of 65 MBOE/day at Bakken and over 90 MBOE/d from Permian. The Kearl project (58% complete) is producing 100 MBOE/d. We see onshore liquids growth and several expected project start-ups driving production gains between ’14-’17.

Kay maintained his buy rating on Exxon.

Exxon’s not the only strong energy stock today. Hess (HES) has gained 1.7% to $81.784 after it was upgraded by Credit Suisse, while ConocoPhillips (COP) has risen 1.1% to $74.07 after beating earnings estimates.

Credit Suisse explains why it raised Hess to Outperform from Neutral:

We are raising our NAV to $112/sh for HES on the basis of (1) better Bakken Well costs; (2) higher Bakken drilling activity; and (3) more credit for the Utica. With disposal proceeds still to come, the balance sheet is being derisked and growth through 2018 looks assured. The pro forma EV/CF multiple in 2014 looks too low. HES should outperform the Majors. While HES is not a pure play shale company and the returns on the Bakken are not as good as other plays, supporting a lower overall multiple, we see 25% upside through the next 6 months. Our $100/sh target represents a 12% discount to NAV, the typical point at which SOTP stories run out of steam.

Best Blue Chip Stocks To Own For 2014

Fidelity has a mutual fund roster filled with stalwarts: portfolios that consistently beat their peers over time, run by solid managers who stay put for decades. Will Danoff, for instance, has managed Contrafund for 23 years. Joel Tillinghast has been at Low-Priced Stock for 24 years. Both Contra and Low-Priced are members of the Kiplinger 25, the list of our favorite no-load funds. But Fidelity has several other funds that are run by an emerging group of stars and that are also worth a look. Here is a rundown of our favorites at the Boston-based behemoth (all figures are through October 16).

See Also: Don't Give Up on the American Funds Stock funds

Blue Chip Growth (FBGRX). This large-company growth fund often veers more toward the ��rowth��part of its name than the ��lue chip��part. For example, some of its best-performing-stocks over the past 12 month are such highfliers as Gilead Sciences, the biotech firm (up 92% over the past 12 months), carmaker Tesla Motors (554%) and Green Mountain Coffee Roasters (201%). Of course, bigger, more-established names that fit the fund�� blue-chip mandate are part of the portfolio, too: Apple (-22.9% over the past year), Coca-Cola (0.3%) and Procter & Gamble (13.5%), to name a few.

Best Blue Chip Stocks To Own For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

[By Alex Planes]
By 1928, Texaco was the first company to operate a unified sales network of one branded gasoline. Texaco developed modern service stations in 1937, with the familiar car wash, mechanic bays, sales office, restrooms, and large street-facing brand signs. In 1959, Texas Company officially changed its name to Texaco, which it retained until merging with Chevron (NYSE: CVX ) in 2001 to create one of the world's largest integrated oil companies, under the Chevron brand.
[By Bespoke Investment Group]
As we have pointed out multiple times in the last several weeks, large cap Energy stocks led by Exxon (XOM) and Chevron (CVX) have been big laggards over the last year. As you slide down the market cap scale, however, relative strength has been improving. Small cap Energy sector stocks, for example, have been on a tear, and are outperforming the S&P 600 small cap index by the largest margin of the year.

Best Blue Chip Stocks To Own For 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

[By Daniel Sparks]
When analyzing companies' balance sheets, many investors compare assets to liabilities with ratios like the debt-to-equity ratio. In the video below, Fool contributor Daniel Sparks suggests to instead focus on a company's ability to service its debt. Specifically, he suggests using the debt burden ratio. Comparing Apple (NASDAQ: AAPL ) and Google (NASDAQ: GOOG ) on this metric to other blue chip stocks, these tech behemoths look extremely compelling.

Hot Small Cap Stocks To Invest In Right Now: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

[By Dividend Growth Investor]
In a previous article, I outlined that it is getting more difficult to find quality dividend paying stocks to buy. Most of the usual suspects like Kimberly-Clark (KMB) or Colgate-Palmolive (CL) are very overvalued today, which prevents me from adding to my positions there. Other companies like Chevron (CVX) are attractively valued today, but unfortunately my portfolio is overweight in them. Currently I find the oil sector to be cheap and have some of the lowest P/E ratios in the market. However, I would hate to be concentrated in one sector which is exposed to the fluctuating prices in its commodity products.
[By Monica Gerson]
Colgate-Palmolive Co (NYSE: CL) is expected to report its Q3 earnings at $0.73 per share on revenue of $4.46 billion.

Precision Castparts (NYSE: PCP) is projected to report its Q2 earnings at $2.83 per share on revenue of $2.36 billion.
[By Dan Caplinger]
Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.
[By Ong Kang Wei]
Another example of such a product is Colgate-Palmolive (CL)'s Colgate toothpaste. I do not think I have to elaborate much here. Toothpaste is needed in our everyday life, and we will definitely have to buy more toothpaste after we have finished using a packet of it, ensuring that Colgate gets more and more sales over the years.

Best Blue Chip Stocks To Own For 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

[By Jane Edmondson]
Green Dot (GDOT), a Pasadena, CA-based company, is a leading provider of prepaid MasterCard (MA) and Visa (V) debit cards. Green Dot products are sold in more than 60,000 retail locations including drug stores, grocery stores, convenience stores, and discount department stores. The company also has a discounted offering available exclusively through Wal-Mart (WMT).
[By Chris Hill]
Visa (NYSE: V ) and Under Armour (NYSE: UA ) hit new all-time highs. General Motors (NYSE: GM ) appears to be turning the corner in Europe. And second-quarter profits for Crocs (NASDAQ: CROX ) fell a whopping 43%. In this installment of Investor Beat, Motley Fool analysts David Hanson and Jason Moser discuss four stocks making moves on Thursday.
[By Dan Caplinger]
2. A simple savings account
Savings accounts aren't popular among financial institutions because they aren't big revenue generators. The profits from prepaid cards come from merchant charges that Visa (NYSE: V ) and MasterCard (NYSE: MA ) collect, keeping a portion and giving the rest to card-issuing institutions. That's likely where SpendSmart expects to get the money to pay Bieber's $3.75 million endorsement fee.
[By David Hanson and Matt Koppenheffer]
In this video, Motley Fool financial analysts David Hanson and Matt Koppenheffer discuss three reasons American Express is well-positioned and a possibly better than Visa (NYSE: V ) or MasterCard (NYSE: MA ) �as�way to play the growth in plastic.�

Best Blue Chip Stocks To Own For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

[By Dan Caplinger]
IBM (NYSE: IBM ) , though, fell 0.6%, which made it the biggest loser in the Dow on a percentage basis. As numerous Fool contributors have noted earlier today, Oracle scored a big win in its challenge to IBM's strategy of dominating the Big Data market, when a study showed that Oracle's technology performed better than IBM's. As troubling as that is for Big Blue, it ordinarily wouldn't have a big impact on the broader stock market. But because IBM's share price is so high, it has a disproportionately heavy weighting in the price-weighted Dow. As a result, if IBM can't resolve its problems, a stock decline could make it very hard for the Dow to advance overall.
[By Anders Bylund]
Maybe Microsoft would be better off doubling down on the enterprise-class software portfolio instead, leaving others to battle over consumer gadgets like tablets and smartphones. Spin-off or sell the successful Xbox operation to give it the best possible shot at rewarding investors, and let the core of Microsoft go head-to-head with IBM (NYSE: IBM ) in the business-class sector instead.
[By Alex Planes]
To understand the opportunity, it helps to take a look back at the trend TIBCO's riding to greatness: big data. The growth of big data was one of my top tech predictions for 2012, but the outcome of that call seemed to be a bit ahead of the curve. That's not necessarily because the demand isn't there -- indeed, TIBCO, Splunk (NASDAQ: SPLK ) , and IBM (NYSE: IBM ) all impressed the Street with the strength of their analytics operations. Rather, it's because big data is really "difficult data," in the sense that it's really not that easy to find qualified workers for the field. A glance at these companies' job postings makes that evident. TIBCO has nearly 80 openings in�its U.S. offices alone, and the smaller Splunk has about two dozen openings for big data-focused jobs. This might not be such a big problem for the more diversified IBM, but without the right people in place, TIBCO won't be able to take full advantage of its unique position.
[By Rick Munarriz]
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
IBM (NYSE: IBM ) proved mortal on Thursday, missing Wall Street's profit expectations for the first time in ages. Outside of a quarter in 2007 when IBM merely matched analyst bottom-line estimates, IBM managed to keep its impressive streak of beats going until now. BTIG Research initiated coverage of Netflix (NASDAQ: NFLX ) with a Buy rating and a $250 price target. Some may argue that BTIG is late to the game, since the stock has already tripled from last year's low, but better late than never. Intel (NASDAQ: INTC ) didn't do itself any favors by missing Wall Street's profit projections. Rival Advanced Micro Devices (NYSE: AMD ) surpassed expectations, but it still recorded a loss. It was also surprising to hear Intel's CEO tease about lower prices. Folks won't be spending good money on tech if they see prices falling in the near future.

Best Blue Chip Stocks To Own For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

[By Andrew Marder]
Yesterday, Starbucks (NASDAQ: SBUX ) announced that starting next week, it will provide calorie counts on all of its menu boards in its U.S. stores. The move follows earlier menu updates by McDonald's (NYSE: MCD ) and others, as companies try to get out in front of any new legislation. Since 2010, when health care legislation came into effect, the FDA has been working on a law requiring businesses to display calorie information. That effort seems to have stalled out due to strong lobbying and sharp differences between the sides in the debate.
[By David Goodboy]
I regularly screen the market for pullback trading opportunities, and I recently found a powerful one. I would never buy a stock on the technical picture alone, but when other bullish factors combine with a technical setup, it can paint a compelling picture. The technical pullback setup is in none other than Dow Jones Industrial Average component McDonald's (NYSE: MCD).

Best Blue Chip Stocks To Own For 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

[By Rich Duprey]
Global tobacco giant�Philip Morris International (NYSE: PM ) announced this morning its second-quarter dividend of $0.85 per share, the same rate it's paid for the past three quarters after raising the payout 10% from $0.77 per share.
[By Diane Alter]
Dividend Stocks That Increased Payout in September
Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good
[By Dan Dzombak]
However, the tobacco industry has been a great hunting ground for investors. While no tobacco companies pay as high a dividend as Vector Group, long-term investors would do well to look at Altria in the U.S. or Phillip Morris International (NYSE: PM ) . Both were part of the original Phillip Morris conglomerate that split up around 2008 by spinning off Kraft and Phillip Morris International.� Both businesses are leaders in their respective markets -- Altria in the U.S. and Phillip Morris the world, excluding China and the U.S -- and have exceptionally high-returning businesses. This is in part due to both having one of the top brands in the world with Marlboro. For dividend investors, the key part is that both have long-term histories of steadily increasing their dividends. If I had to choose just one, while Altria has a higher yield than Phillip Morris (4.9% vs. 3.9%), I would go with Phillip Morris. The company has better growth prospects and a lower payout ratio, and the business is far more diversified in terms of legal risk, whereas Altria could be hurt by any laws or rulings that go against tobacco companies in the U.S.
[By Rich Smith]
The commonly accepted wisdom in the cigarette industry goes something like this: Smoking is in decline in the United States. Therefore, if you want to make money on tobacco, you must look abroad. You must buy Philip Morris International (NYSE: PM ) stock.

Saturday, December 28, 2013

CEO Forum with Mulally: Be nice, visionary

ATHENS, Ga. — College students packed an auditorium on the University of Georgia campus here this month seeking words of wisdom from Ford CEO Alan Mulally.

He passed along some sage advice … from his parents. "One thing I learned from (them) was that it's nice to be important, but it's more important to be nice," Mulally told the 425 students in the Tate Student Center's Grand Hall.

First Take: Ford misses chance to squelch Mulally, Microsoft talk

People skills and aptitude for teamwork are critical for students as they prepare to enter the work force, he said. "Be terrific at the skill you're doing right now, be open to the possibility of expanding those skills, and then just enhance and learn and develop your working together skills," Mulally said. "Be true to yourself and your values … and be accountable for actually getting things done."

That simple but solid counsel has served Mulally well. As an aerospace engineer and executive at Boeing, he helped the aircraft company take off with development of the 777 jetliner.

First Take: Ford's Mulally could bring wisdom to Microsoft

Arriving at Ford in 2006, Mulally, 68, helped steer the automaker through a restructuring and led it through the U.S. financial crisis and Great Recession while its Detroit rivals landed in bankruptcy court. Today, he's one of the most sought-after CEOs in the U.S., with persistent rumors that Microsoft might woo him away before his planned 2014 departure from Ford.

Mulally touched on that issue and many others, including globalization and in-vehicle technology, during the 16th USA TODAY CEO Forum, held Oct. 1 in cooperation with the university's Grady College of Journalism and Mass Communications, Terry College of Business, the College of Engineering, the Student Government Association, the University Union Student Programming Board and the Division of Student Affairs.

During the question-and-answer session with students, Mulally was asked what would persuade him to leave ! Ford for Microsoft by Holly Beale, a senior in information systems management who has been offered a job with Microsoft when she graduates.

"Congratulations. They are a great company," he said. "With respect to Microsoft, I love serving Ford, so I have nothing new to announce besides serving Ford."

Then he invoked another bit of parental advice to always be open to new possibilities. "I never really thought I would leave Ford," he said just as he hadn't planned to leave Boeing. "When (then-Ford CEO and current executive chairman) Bill Ford called, I knew I was having trouble, because I didn't say 'No' right away."

When he got to Ford, Mulally did a reality check on where the carmaker was at the time — a philosophy that students could apply to their own plans, he said. "The most important thing is to simultaneously deal with reality, really the way it is, not the way you wished it could be or you hoped it could be," he said. "But also have a vision about where you want to go."

He sold the Jaguar and Land Rover brands in 2008, Volvo two years later and through those same years, shed Ford's ownership stake in Mazda to focus on the core Ford and Lincoln brands. He committed the company to "quality, fuel efficiency, safety, really smart design like seamlessly connecting to the Internet, and also," Mulally said, "to be the most affordable, which was (company founder) Henry Ford's original vision."

Ford financed its overhaul — and avoided needing government aid to survive the financial crisis in 2009 the way General Motors and Chrysler did — with $23.6 billion in private credit that Mulally arranged in 2006, just months into the job, by mortgaging the entire company.Ford reported a profit in 2009 and is on a string of 16 consecutive profitable quarters.

A new companywide accountability process has helped identify problem areas sooner than was the case in the past, Mulally says. "Every week, we meet with the entire team worldwide, and we review the status against the pl! an," he s! aid. "Have we launched all of the new technology? What areas need special attention? And then we work together as a team worldwide to turn the reds to yellows to green. … We all can't wait to get back there the next week to see the progress."

Highlights of the conversation with Mulally, edited for space and clarity.

Q: What was like going from Boeing to an automaker?

A: At kind of the highest level, (the two industries) probably have more similarities than they're different. Most of them are very, very sophisticated vehicles. We design (planes) for the traveling public so you go point to point non-stop. Same with automobiles. I remember, when we walked out on stage in Dearborn (Mich.), and Bill Ford introduced me to all of the press, one of the journalists said, 'Mr. Mulally, with all due respect, you're not a car guy, and, you know, we're in trouble here. And what does that mean to us?' Because it's such a complicated industry starting with the vehicles themselves.

I kind of rubbed my chin, trying to buy myself some time to think of an answer, and I said, 'Well, I really agree with you that automobiles are very, very sophisticated. As a matter of fact, the average automobile has around 10,000 parts. They're very, very sophisticated. I might point out that the 777 has 4 million moving parts, and it stays in the air.'

Q: Technology has been very important at Ford. What is in the future for connected vehicles?

A: Because of the Internet of things, we're all going to be connected. Instead of inventing the technology, we're using all of the (current) smartphone devices. ... When you bring your smartphone into the car, then we allow you to use that smartphone. You provide the voice activations so you can keep your hands on the wheel, your eyes on the road and yet use your smartphone through voice, and you can operate not only your connection with the Internet, but you can also manage your apps.

The next step is going to be that we're going to end up with embedded! modems i! n the car, and now the car will really be another instrument on the Internet. That philosophy, keeping the driver as the center of the attention, is probably the most important thing we can do to remove distracted driving and making drivers better drivers.

I think you'll have a relationship with your Ford store like your Apple store, where you'll be able to flash (upgrade) the car every couple of months, (and) it will have all of the latest applications, latest upgrades.

Q: Talk about the importance of Ford's EcoBoost technology and the risks involved with that strategy.

A: It was probably one of the most significant breakthroughs in engine and propulsion technology. What EcoBoost is, is an internal-combustion engine but also using direct fuel injection and (a turbocharger). You run at higher temperatures at higher burner pressure rates, but it allows you to burn more in a clean way and improve fuel efficiency by over 25%. You can reduce the CO² by nearly 15%. Another neat thing is, you increase the torque at the lower (engine revolutions). When you're driving the vehicle, you just have this wonderful driving experience, plus you get all of the benefits of fuel efficiency.

In terms of the risks is that at the time, that technology was very expensive. But we knew that we could increase the scale and improve the costs of it, and get the real benefit worldwide. Now, within a few years, all of our vehicles will have this EcoBoost technology.

Q: There have been reports that younger people may not want to buy cars as much as Baby Boomers have. How is Ford targeting Millennials?

A: I just saw a student in the new Fiesta, and, my gosh, they're just the neatest vehicles. But it used to be, in the United States, that if you had a smaller vehicle, it's going to be considered to be cheap because it wouldn't have all of the features, and it wouldn't have the technology, and it wouldn't have the fuel efficiency and the quality. Now, back to our brand promise, these are th! e best-in! -class vehicles in the world. When you get a Fiesta, you get the best quality and all of the features. We're really attracting all age groups with all of the different interests and the different-size vehicles because we made that commitment.

Q: In your time as CEO, Michigan and northern Ohio have had some of the highest unemployment rates in the country. What is Ford's commitment to helping people who helped build Ford?

A: The most important thing that we can do and we're doing is to create an exciting, profitably growing Ford. We are now competing with the best companies in the world right here in the United States. That wasn't true seven years ago. In our case, we've announced that we're going to be hiring nearly 15,000 new employees within the next couple of years, and great salaried jobs, great hourly jobs and great careers. That's our commitment. The best thing we can do everywhere we operate in the United States is to grow by making the best cars and trucks in the world and provide for ever-increasing job opportunities.

Q: How will Ford compete internationally where companies in other countries can offer vehicles at lower prices?

A: Ford's point of view is that we believe that we can serve maybe three-fourths, 80% of the market, but we are not making vehicles at the very small, lowest end. It's just not our competency. There's a tremendous market all around the world for vehicles around the Fiesta size, a B (subcompact) size. So we compete on the B size all the way up through the larger vehicles.

When you look at automobiles worldwide, about 30% of all the vehicles sold over the next few years are going to be in the Americas, North and South America. About 30% will be in Europe, Russia and Africa, and 40% will be Asia Pacific, led by China. In China this year, the industry will probably sell 21 million vehicles. In the U.S., it will be around 16 million. In Europe, around 13 million. You can just see the impact Asia Pacific is going to continue to have thr! ough the ! world.

Ford is going to focus on the Fiesta size and the larger vehicles. The Chinese love the smaller SUVs, just like the rest of the world. They are just so practical, they're so fun, they're safe, you're sitting up high, you have great visibility. You can use it for work, you can use it for family, for leisure. It's probably the fastest-growing segment around the world. I think we're really well-positioned. We're increasing our production as fast as we can.

Q: What else is in the future for Ford and the U.S. auto industry?

A: We're going to see a lot of improvement in internal combustion, whether it's diesel or (gasoline), and new materials, integrated electronics, the aerodynamic improvements, system integration, so a lot of improvements. Looking forward, I think we're going to see more biomass fuels. I think we're going to see more natural gas vehicles — we're going to have one out there — but I also think we're going to see more electrified vehicles and more hybrids, then all of the electric vehicles that have a much larger battery. How fast that happens will be dependent on how we improve the costs and the capability and reduce the weight of the batteries, because that's the single most important thing.

You can imagine a world where you have a hydrogen tank and you mix the hydrogen with platinum, and water comes out of the tailpipe, electricity goes to the new high-efficiency battery, and now we're actually using our energy in a clean way. As we develop our energy policies in the United States to generate our energy clean, then I think we're going to really move to a world that all of us want, and that is a sustainable future.