Top Oil Stocks To Own For 2014

Investors in Devon Energy (NYSE: DVN  ) are probably pretty pleased with the pipeline partnership deal it just inked with Crosstex Energy, but investors need to know what Devon must do to remain successful past this one-off agreement. For the natural gas and oil producer to stay on top of the U.S. shale drilling game, it will need to shift its focus away from the Barnett shale to the Permian Basin.�

Both Devon and Pioneer Natural Resources (NYSE: PXD  ) have been pulling out of the Barnett recently for good reason -- the economics for wells just aren't there based on today's gas prices. So Devon and Pioneer have set their sights on the Permian instead. Devon already has a major presence in the Permian, so ramping up activity there should be easier than at many of its other holdings across the country. In the video below, Fool contributor Tyler Crowe discusses the other reasons why Devon will need the Permian going forward.�

Who Will Join Devon in Dominating the American Energy Boom?
Devon is carving out a position as a top American energy company, but they aren't alone. The transformation of the American energy space is creating investment opportunities everywhere, but picking the right ones will mean the difference between a flash in the pan and a long term jewel. For this reason, we have put together comprehensive look at three energy companies set to soar during this transformation in the energy industry. Find out which two companies have joined Devon on our list of companies that are spreading their wings by checking out our special report, "3 Stocks for the American Energy Bonanza." Simply�click here�and we'll give you free access to this valuable investing resource.�

Top Oil Stocks To Own For 2014: Occidental Petroleum Corporation(OXY)

Occidental Petroleum Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company primarily in the United States. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. The Oil and Gas segment explores for, develops, produces, and markets crude oil, natural gas liquids, and condensate and natural gas. Its domestic oil and gas operations are located in Texas, New Mexico, California, Kansas, Oklahoma, Utah, Colorado, North Dakota, and West Virginia; and international oil and gas operations are located in Bahrain, Bolivia, Colombia, Iraq, Libya, Oman, Qatar, the United Arab Emirates, and Yemen. As of December 31, 2010, this segment had proved reserves of approximately 3,363 million barrels of oil equivalent. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, and ethylene dichloride products; vinyls, such as vinyl chloride monomer and polyvinyl chloride; and other chemicals comprising chlorinated isocyanurates, resorcinol, sodium silicates, and calcium chloride products. The Midstream, Marketing, and Other segment gathers, treats, processes, transports, stores, purchases, and markets crude oil that includes natural gas liquids and condensate, as well as natural gas and carbon dioxide. This segment also involves in the power generation; and trades around its assets comprising pipelines and storage capacity, as well as oil and gas, other commodities, and commodity-related securities. Occidental Petroleum Corporation was founded in 1920 and is based in Los Angeles, California.

Advisors' Opinion:

• [By Federico Zaldua]

  Occidental Petroleum (OXY), just bought by George Soros for his family-owned hedge fund, is more highly leveraged into oil than most of its large exploration and production (E&P) peers. That said, the company presented slightly disappointing quarterly earnings. Earnings were down 4% from a year ago and 7% sequentially despite the good results at the oil and gas division. Nevertheless, the future performance of the stock will mainly depend on what the board decides about corporate restructuring.

• [By Sean Williams]

  In the Permian Basin, Occidental Petroleum (NYSE: OXY  ) has been a big rail transport beneficiary, since it produced as much oil in 2011 as the No. 2, No. 3, and No. 4 producers combined! Being able to pilfer a few extra dollars per barrel can mean hundreds of millions of dollars extra for companies like Occidental with huge oil exposure.

Top Oil Stocks To Own For 2014: Chesapeake Energy Corporation(CHK)

Chesapeake Energy Corporation engages in the acquisition, development, exploration, and production of natural gas and oil properties in the United States. It also provides marketing and other midstream services. The company?s properties are located in Alabama, Arkansas, Colorado, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. As of December 31, 2010, it had interests in approximately 45,800 gross productive wells. The company?s proved reserves include 17.096 trillion cubic feet of natural gas equivalent. Chesapeake Energy Corporation was founded in 1989 and is based in Oklahoma City, Oklahoma.

Advisors' Opinion:

• [By Arjun Sreekumar]

  Last week, Chesapeake Energy (NYSE: CHK  ) reported a first-quarter profit that beat Wall Street expectations, aided by strong oil production growth and higher natural gas prices during the quarter.

• [By Matt DiLallo]

  Because of the lackluster returns so far, major oil and gas producers like Chesapeake Energy (NYSE: CHK  ) and Devon Energy (NYSE: DVN  ) have announced plans to reduce operations in the play. Devon, which is completely exiting the play, really had a rough year, as most of the wells it drilled were not economical. One of the issues is the oil accumulations located in the shale were in areas that lacked the pressure necessary to force the oil out of the shale. Chesapeake, on the other hand, is selling what is no longer core acreage in order to shore up its balance sheet.

• [By WALLSTCHEATSHEET.COM]

  Chesapeake is definitely on the correct path. However, it might be too little too late. If the global economy continues to weaken, then Chesapeake will have to fight hard just to break even. In the current economic environment, the majors like Exxon Mobil (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are safer alternatives.

• [By Dan Caplinger]

  Perhaps most importantly, Ultra hasn't made the same mistakes as some of its formerly gas-focused competitors in buying high and selling low. Chesapeake Energy (NYSE: CHK  ) and SandRidge Energy (NYSE: SD  ) largely gave up on gas, seeking to broaden their asset bases further into more lucrative oil and natural gas liquids. Yet as Chesapeake and SandRidge have sold off assets at the least desirable time, Ultra has stayed committed to gas and therefore stands to benefit more from its recent gains.

Top 10 Value Stocks To Buy Right Now: Falcon Oil & Gas Ltd (FO)

Falcon Oil & Gas Ltd. (Falcon) is an energy company engaged in the business of acquiring, exploring and developing petroleum and natural gas properties. The Company focuses on the acquisition, exploration and development of conventional and unconventional petroleum and natural gas projects in Central Europe (specifically Hungary), Australia and South Africa. Falcon holds 100% interest in 245,775 acres in a production license in the Mako Trough, southern Pannonian Basin in Hungary. Effective July 18, 2013, Falcon Oil & Gas Ltd raised its interest to 96.9% from 72.68%, by acquiring a further 24.22% interest in Falcon Oil & Gas Australia Ltd, from Sweetpea Petroleum Corp Pty Ltd, a unit of PetroHunter Energy Corp. Effective September 19, 2013, Falcon Oil & Gas Ltd acquired the remaining 3.1% stake, which it did not already own, in Falcon Oil & Gas Australia Ltd, a oil and gas exploration and production company.

Top Oil Stocks To Own For 2014: Access Midstream Partners LP (ACMP)

Access Midstream Partners, L.P., formerly Chesapeake Midstream Partners, L.L.C. (Partnership), incorporated on January 21, 2010, owns, operates, develops and acquires natural gas, natural gas liquids (NGLs) and oil gathering systems and other midstream energy assets. The Company is focused on natural gas and NGL gathering. The Company provides its midstream services to Chesapeake Energy Corporation (Chesapeake), Total E&P USA, Inc. (Total), Mitsui & Co. (Mitsui), Anadarko Petroleum Corporation (Anadarko), Statoil ASA (Statoil) and other producers under long-term, fixed-fee contracts. On December 20, 2012, the Company acquired from Chesapeake Midstream Development, L.P. (CMD), a wholly owned subsidiary of Chesapeake, and certain of CMD's affiliates, 100% of interests in Chesapeake Midstream Operating, L.L.C. (CMO). As a result of the CMO Acquisition, the Partnership owns certain midstream assets in the Eagle Ford, Utica and Niobrara regions. The CMO Acquisition also extended the Company's assets and operations in the Haynesville, Marcellus and Mid-Continent regions.

The Company operates assets in Barnett Shale region in north-central Texas; Eagle Ford Shale region in South Texas; Haynesville Shale region in northwest Louisiana; Marcellus Shale region in Pennsylvania and West Virginia; Niobrara Shale region in eastern Wyoming; Utica Shale region in eastern Ohio, and Mid-Continent region, which includes the Anadarko, Arkoma, Delaware and Permian Basins. The Company's gathering systems collect natural gas and NGLs from unconventional plays. The Company generates its revenues through long-term, fixed-fee gas gathering, treating and compression contracts and through processing contracts.

Barnett Shale Region

The Company's gathering systems in its Barnett Shale region are located in Tarrant, Johnson and Dallas counties in Texas in the Core and Tier 1 areas of the Barnett Shale and consist of 25 interconnected gathering systems and 850 miles of pipeline. During the year! ended December 31, 2012, average throughput on the Company's Barnett Shale gathering system was 1.195 billion cubic feet per day. The Company connects its gathering systems to receipt points that are either at the individual wellhead or at central receipts points into which production from multiple wells are gathered. The Company's Barnett Shale gathering system is connected to the three downstream transportation pipelines: Atmos Pipeline Texas, Energy Transfer Pipeline Texas and Enterprise Texas Pipeline. Natural gas delivered into Atmos Pipeline Texas pipeline system serves the greater Dallas/Fort Worth metropolitan area and south, east and west Texas markets at the Katy, Carthage and Waha hubs. Natural gas delivered into Energy Transfer Pipeline Texas pipeline system serves the greater Dallas/Fort Worth metropolitan area and southeastern and northeastern the United States markets supplied by the Midcontinent Express Pipeline, Centerpoint CP Expansion Pipeline and Gulf South 42-inch Expansion Pipeline. Natural gas delivered into Enterprise Texas Pipeline pipeline system serves the greater Dallas/Fort Worth metropolitan area and southeastern and northeastern the United States markets supplied by the Gulf Crossing Pipeline.

Eagle Ford Shale Region

The Company's gathering systems in its Eagle Ford Shale region are located in Dimmit, La Salle, Frio, Zavala, McMullen and Webb counties in Texas and consist of 10 gathering systems and 618 miles of pipeline. During 2012, gross throughput for these assets was 0.169 billion cubic feet per day. The Company connects its gathering systems to central receipt points into which production from multiple wells is gathered. The Company's Eagle Ford gathering systems are connected to six downstream transportation pipelines, which include Enterprise, Camino Real, West Texas Gas, Regency Gas Service, Eagle Ford Gathering and Enerfin. The Company processes gas at Yoakum or other Enterprise plants and transports residue to Wharton residue header w! ith conne! ctions to numerous interstate pipelines.

Haynesville Shale Region

The Company's Springridge gas gathering system in the Haynesville Shale region is located in Caddo and DeSoto Parishes, Louisiana, in one of the core areas of the Haynesville Shale and consists of 263 miles of pipeline. During 2012, average throughput on the Company's Springridge gathering system was 0.359 billion cubic feet per day. The Company connects its gathering system to receipt points that are at central receipt points into which production from multiple wells is gathered. The Company's Springridge gathering system is connected to three downstream transportation pipelines: Centerpoint Energy Gas Transmission, ETC Tiger Pipeline and Texas Gas Transmission Pipeline. The Company's Mansfield gas gathering system in the Haynesville Shale region is located in DeSoto and Sabine Parishes, Louisiana, in one of the areas of the Haynesville Shale and, as of December 31, 2012, consist of 304 miles of pipeline. During 2012, average throughput on the Company's Mansfield gathering system was 0.720 billion cubic feet per day. The Company connects its gathering system to receipt points that are at central receipt points into which production from multiple wells is gathered and treated. The Company's Mansfield gathering system is connected to two downstream transportation pipelines: Enterprise Accadian Pipeline and Gulf South Pipeline. Natural gas delivered into Enterprise Accadian pipeline can move to on-system markets in the Midwest and to off-system markets in the Northeast through interconnections with third-party pipelines. Natural gas delivered into Gulf South pipeline can move to on-system markets in the Midwest and to off-system markets in the Northeast through interconnections with third-party pipelines.

Marcellus Shale Region

Through Appalachia Midstream, the Company operates 100% of and own an approximate average 47% interests in 10 gas gathering systems that consist of approximately 5! 49 miles ! of gathering pipeline in the Marcellus Shale region. The Company's volumes in the region are gathered from northern Pennsylvania, southwestern Pennsylvania and the northwestern panhandle of West Virginia, in core areas of the Marcellus Shale. The Company operates these smaller systems in northeast and central West Virginia, southeast Pennsylvania, northwest Maryland, north central Virginia, and south central New York. During 2012, gross throughput for Appalachia Midstream assets was just over 1.8 billion cubic feet per day. The Company's Marcellus gathering systems' delivery points include Caiman Energy, Central New York Oil & Gas, Columbia Gas Transmission, MarkWest, NiSource Midstream, PVR and Tennessee Gas Pipeline. Natural gas is delivered into a 16-inch pipeline and delivered to the Caiman Energy Fort Beeler processing plant where the liquids are extracted from the gas stream. The natural gas is then delivered into the TETCo interstate pipeline for ultimate delivery to the Northeast region of the United States. Natural gas delivered into Central New York Oil & Gas 30-inch diameter pipeline can be delivered to Stagecoach Storage, Millennium Pipeline, or Tennessee Gas Pipeline's Line 300. In Columbia Gas Transmission lean natural gas is delivered into two 36-inch interstate pipelines for delivery to the Mid-Atlantic and Northeast regions of the United States. Natural gas is delivered into a MarkWest pipeline for delivery to the MarkWest Houston processing plant where the liquids are extracted from the gas stream. In NiSource Midstream natural gas is delivered into a 20-inch diameter pipeline and delivered to the MarkWest Majorsville processing plant where the liquids are extracted from the rich gas stream. In PVR natural gas is delivered into the 24-inch diameter Wyoming pipeline and the Hirkey Compressor Station. In Tennessee Gas Pipeline natural gas is delivered into this looped 30-inch diameter pipeline (TGP Line 300) at three different locations can be received in the Northeast at points along th! e 300 Lin! e path, interconnections with other pipelines in northern New Jersey, as well as an existing delivery point in White Plains, New York.

Niobrara Shale Region

The Company's gathering systems in the Niobrara Shale region are located in Converse County, Wyoming and consist of two interconnected gathering systems and 79 miles of pipeline. During 2012, average throughput in the Company's Niobrara Shale region was 0.013 billion cubic feet per day. The Company connects its gathering systems to receipt points,which are either at the individual wellhead or at central receipts points into which production from multiple wells are gathered. The Company's Niobrara gathering systems are connected to two downstream transportation pipelines: Tallgrass/Douglas Pipeline and North Finn/DCP Inlet Pipeline. Natural gas delivered into Tallgrass/Douglas pipeline is sent to the Tallgrass processing facility; after processing, natural gas is delivered to Cheyenne Hub, Rockies Express Pipeline, or Trailblazer Pipeline through Tallgrass Interstate Gas Transmission.

Utica Shale Region

The Company's gathering systems in the Utica Shale region are located in northeast Ohio and consist of 67 miles of pipeline. The Company's Utica gathering systems are connected to two downstream transportation pipelines: Dominion East Ohio (Blue Racer) and Dominion Transmission, Inc.

Mid-Continent Region

The Company's Mid-Continent gathering systems extend across portions of Oklahoma, Texas, Arkansas and Kansas. Included in the Company's Mid-Continent region are three treating facilities located in Beckham and Grady Counties, Oklahoma, and Reeves County, Texas, which are designed to remove contaminants from the natural gas stream.

Anadarko Basin and Northwest Oklahoma

The Company's assets within the Anadarko Basin and Northwest Oklahoma are located in northwestern Oklahoma and the northeastern portion of the Texas Panhandle and consist of appro! ximately ! 1,578 miles of pipeline. During 2012, the Company's Anadarko Basin and Northwest Oklahoma region gathering systems had an average throughput of 0.457 billion cubic feet per day. Within the Anadarko Basin and Northwest Oklahoma, the Company is focused on servicing Chesapeake's production from the Colony Granite Wash, Texas Panhandle Granite Wash and Mississippi Lime plays. Natural gas production from these areas of the Anadarko Basin and Northwest Oklahoma contains NGLs. In addition, the Company operates an amine treater with sulfur removal capabilities at its Mayfield facility in Beckham County, Oklahoma. The Company's Mayfield gathering and treating system gathers Deep Springer natural gas production and treats the natural gas to remove carbon dioxide and hydrogen sulfide to meet the specifications of downstream transportation pipelines.

The Company's Anadarko Basin and Northwest Oklahoma systems are connected to a transportation pipelines transporting natural gas out of the region, including pipelines owned by Enbridge and Atlas Pipelines, as well as local market pipelines such as those owned by Enogex. These pipelines provide access to Midwest and northeastern the United States markets, as well as intrastate markets.

Permian Basin

The Company's Permian Basin assets are located in west Texas and consist of approximately 358 miles of pipeline across the Permian and Delaware basins. During 2012, average throughput on the Company's gathering systems was 0.076 billion cubic feet per day. The Company's Permian Basin gathering systems are connected to pipelines in the area owned by Southern Union, Enterprise, West Texas Gas, CDP Midstream and Regency. Natural gas delivered into these transportation pipelines is re-delivered into the Waha hub and El Paso Gas Transmission. The Waha hub serves the Texas intrastate electric power plants and heating market, as well as the Houston Ship Channel chemical and refining markets. El Paso Gas Transmission serves western the United ! States ma! rkets.

Other Mid-Continent Regions

The Company's other Mid-Continent region assets consist of systems in the Ardmore Basin in Oklahoma, the Arkoma Basin in eastern Oklahoma and western Arkansas and the East Texas and Gulf Coast regions of Texas. The other Mid-Continent assets include approximately 648 miles of pipeline. These gathering systems are localized systems gathering specific production for re-delivery into established pipeline markets. During 2012, average throughput on these gathering systems was 0.031 billion cubic feet per day.

The Company competes with Energy Transfer Partners, Crosstex Energy, Crestwood Midstream Partners, Freedom Pipeline, Peregrine Pipeline, XTO Energy, EOG Resources, DFW Mid-Stream, Enbridge Energy Partners, DCP Midstream, Enterprise Products Partners Inc., Regency Energy Partners, Texstar Midstream Operating, West Texas Gas Inc., TGGT Holdings, Kinderhawk Field Services, CenterPoint Field Services, Williams Partners, Penn Virginia Resource Partners, Caiman Energy, MarkWest Energy Partners, Kinder Morgan, Dominion Transmission (Blue Racer), Enogex and Atlas Pipeline Partners.

Top Oil Stocks To Own For 2014: Transocean Inc.(RIG)

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:

• [By Matt DiLallo]

  As a contract driller this company works with large international oil companies to drill for oil and gas.�It has one of the largest fleets in the business, currently second only to Transocean (NYSE: RIG  ) . Also worth noting, the company isn't as directly�affected by commodity prices as the exploration and production�companies�that contracts with it.���

Top Oil Stocks To Own For 2014: Noble Corp (NE)

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (FPSO) located globally. As of December 31, 2011, its fleet consisted of 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Its fleet includes 11 units under construction, which include five ultra-deepwater drillships, and six jackup rigs. As of February 15, 2012, approximately 84% of its fleet was located outside the United States in areas, which included Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During the year ended December 31, 2011, it completed construction on the Noble Bully I, a drillship, owned through a joint venture with a subsidiary of Royal Dutch Shell plc; completed construction on the Noble Bully II, a drillship, and it completed construction of Globetrotter-class drillship. As of February 15, 2012, it had 10 rigs under contract in Mexico with Pemex Exploracion y Produccion (Pemex).

During 2011, the Company conducted offshore contract drilling operations, which accounted for over 98% of its operating revenues. It conducts its contract drilling operations in the United States Gulf of Mexico, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During 2011, revenues from Shell and its affiliates accounted for approximately 24% of its total operating revenues. During 2011, revenues from Petroleo Brasileiro S.A. (Petrobras) accounted for approximately 18% and 19% of its total operating revenues. Revenues from Pemex accounted for approximately 15%, 20% and 23% of its total operating revenues.

Semisubmersibles

Semisubmersibles are floating platforms which, by means of a water ballasting system, can be submerged to a predetermined depth so that a substantial portion of the hull is b! elow the water surface during drilling operations. As of December 31, 2011, the semisubmersible fleet consisted of 14 units, including five Noble EVA-4000 semisubmersibles; three Friede & Goldman 9500 Enhanced Pacesetter semisubmersibles; two Pentagone 85 semisubmersibles; two Bingo 9000 design unit submersibles; one Aker H-3 Twin Hull S1289 Column semisubmersible, and one Offshore Co. SCP III Mark 2 semisubmersible.

Drillships

The Company�� drillships are self-propelled vessels. These units maintain their position over the well through the use of either a fixed mooring system or a computer controlled dynamic positioning system. Its drillships are capable of drilling in water depths from 1,000 to 12,000 feet. The maximum drilling depth of its drillships ranges from 20,000 feet to 40,000 feet. As of December 31, 2011, the drillship fleet consisted of 14 units, including four drillships under construction with Hyundai Heavy Industries Co. Ltd. (HHI); three Gusto Engineering Pelican Class drillships; two Bully-class drillships to be operated by it through a 50% joint venture with a subsidiary of Shell; one dynamically positioned Globetrotter-class drillship that left the shipyard during the fourth quarter of 2011; one Globetrotter-class drillship under construction; one moored Sonat Discoverer Class drillship capable of drilling in Arctic environments; one NAM Nedlloyd-C drillship, and one moored conversion class drillship.

Jackups

As of December 31, 2011, the Company had 49 jackups in its fleet, including six jackups under construction. The rig hull includes the drilling rig, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. All of its jackups are independent leg and cantilevered. Its jackups are capable of drilling to a maximum depth of 30,000 feet in water depths up to 400 feet.

Submersibles

The Company has two su! bmersible! s in the fleet, which are cold-stacked. Submersibles are mobile drilling platforms, which are towed to the drill site and submerged to drilling position by flooding the lower hull until it rests on the sea floor, with the upper deck above the water surface. Its submersibles are capable of drilling to a depth of 25,000 feet in water depths up to 70 feet.

Advisors' Opinion:

• [By Travis Hoium]

  The second quarter wasn't a blowout for Noble (NYSE: NE  ) but it was an incremental improvement without the help of new drilling rigs to boost results. It really sets a solid foundation until new rigs commanding high dayrates will begin contributing to revenue.

• [By Paul Ausick]

  Two oil field services companies announced on Tuesday that they plan to spin off parts of their businesses into separately traded companies. National Oilwell Varco Inc. (NYSE: NOV) will hive off its distribution business, and Noble Corp. (NYSE: NE) plans to spin off its standard specification (shallow-water) drilling units.

• [By Rich Duprey]

  For the second time in five years, oil giant Noble (NYSE: NE  ) wants to pick up stakes and move. It announced today that its board of directors approved a move from its current location in Switzerland to a new home in the United Kingdom. The move would need to be approved by shareholders.�In 2008, the Houston-based driller had been incorporated in the Cayman Islands and moved to Switzerland to take advantage of preferential tax treatments there.

• [By Claudia Assis]

  Noble (NE) , one of the world�� largest offshore drillers, said late Tuesday it would spin off its that may go public next year.

Top Oil Stocks To Own For 2014: Transportadora de Gas del Sur SA (TGS)

Transportadora de Gas del Sur S.A. (TGS) is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (NGL). TGS�� pipeline system connects major gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. The Company also renders midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation, and maintenance services. The Company operates in three segments: natural gas transportation services through its pipeline system; NGL production and commercialization, and other services, which include midstream and telecommunication services.

During the year ended December 31, 2009, the Company�� gas transportation represented approximately 42% of total net revenues. During 2009, its NGL production and commercialization segment accounted for 50% of the total revenues of the Company. During 2009, its other services segment accounted for 8% of total revenues of the Company. Its other services segment consists of midstream and telecommunications services. Through midstream services, TGS provides integral solutions related to natural gas from wellhead up to the transportation systems. The services consists of gas gathering, compression and treatment, as well as construction, operation and maintenance of pipelines, which are generally rendered to natural gas and oil producers at wellhead. The customers��portfolio also includes distribution companies, industrial users, power plants and refineries.

During 2009, the Company provided a range of technical services to different customers. The services consisted of connections to the transportation system, engineering inspections, project management and professional technical counseling. Telecommunication services are provided through Telcosur S.A. (Telcosur), who renders services both as an independent c! arrier of carriers and to corporate clients within its area. Telcosur has a digital land radio connection system.

Advisors' Opinion:

• [By Dividend]

  Transportadora de Gas Del Sur S.A. (TGS) has a market capitalization of $308.26 million. The company employs 829 people, generates revenue of $466.44 million and has a net income of $43.33 million. Transportadora de Gas Del Sur�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $170.33 million. The EBITDA margin is 36.52 percent (the operating margin is 27.41 percent and the net profit margin 9.29 percent).

• [By Corinne Gretler]

  TGS (TGS) slumped 7.4 percent to 176.90 kroner as Norway�� largest surveyor of underwater oil-and-gas fields lowered its forecast for full-year revenue to $920 million to $1 billion because of lower-than-expected demand from industry. It had projected sales of $970 million to $1.05 billion.

• [By Sofia Horta e Costa]

  Telecom Italia SpA (TIT) lost 1.8 percent as Standard & Poor�� said it may downgrade the phone company�� debt to non-investment grade. TGS Nopec Geophysical Co. (TGS) tumbled the most in two years after reducing its revenue forecast. Celesio AG jumped to a three-year high on a report that McKesson Corp. may buy the German drug distributor.

Top Oil Stocks To Own For 2014: Magellan Midstream Partners L.P.(MMP)

Magellan Midstream Partners, L.P., together with its subsidiaries, engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. Its pipeline system transports petroleum products and liquefied petroleum gases from the Gulf Coast refining region of Texas through the Midwest to Colorado, North Dakota, Minnesota, Wisconsin, and Illinois. The company owns and operates marine terminals, which store and distribute refined petroleum products, blendstocks, crude oils, heavy oils, and feedstocks, as well as inland terminals that consist of storage tanks connected to third-party interstate pipeline systems to deliver refined petroleum products. Its ammonia pipeline system transports ammonia from production facilities in Texas and Oklahoma to terminals in the Midwest. The company also stores, blends, and distributes biofuels, such as ethanol and biodiesel. As of March 31, 2011, it operated approximately 9, 600 miles of petr oleum products pipeline system and 51 terminals; 6 marine petroleum terminals located along the United States Gulf and East Coasts; a crude oil storage in Cushing, Oklahoma; 27 petroleum products inland terminals located principally in the southeastern United States; and a 1,100-mile ammonia pipeline system and 6 associated terminals. The company also provides ancillary services, such as heating, blending, and mixing of stored petroleum products and additive injection services. Its customers comprise independent and integrated oil companies, wholesalers, retailers, railroads, airlines, and regional farm co-operatives. The company serves various markets, including retail gasoline stations, truck stops, farm co-operatives, railroad fueling depots, and military and commercial jet fuel users. Magellan GP, LLC serves as the general partner of the company. The company was founded in 2000 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Dividends4Life]

  Magellan Midstream Partners LP (MMP) is engaged in the transportation, storage and distribution of refined petroleum products primarily through its 9,600-mile pipeline system.
  Yield: 3.9% | Years of Dividend Growth: 12

• [By Arjun Sreekumar]

  Additionally, new and reversed pipelines are allowing more crude oil to flow directly from oil and gas hot spots, such as the Permian Basin of West Texas, to Gulf Coast refineries. For instance, Magellan Midstream Partners' (NYSE: MMP  ) started up its reversed Longhorn pipeline in April, which provided another 225,000 barrels per day of incremental capacity from West Texas to Houston-area refineries, while Sunoco Logistics Partners (NYSE: SXL  ) is expected to start up its Permian Express project this month, which will provide additional capacity out of the Permian Basin of about 90,000 barrels per day.

Is Lockheed Martin Headed for Blue Skies in 2013?

The federal budget sequester went into effect March 1, but given the strong performance defense giant Lockheed Martin (NYSE:LMT) has experienced over the past five months, you wouldn't know it. However, the company has compressed its 2013 outlook to reflect impending spending reductions spurned by sequestration. Will Lockheed Martin be able to keep its momentum despite reduced government funding? Let's use our CHEAT SHEET investing framework to decide whether Lockheed Martin is an OUTPERFORM, WAIT AND SEE, or STAY AWAY.

C = Catalysts for the Stock's Movement

Because around 82 percent of Lockheed Martin's sales are to the U.S. government, the company is highly dependent on the domestic defense budget. Sequestration measures enacted earlier this year require the government to reduce defense spending by $500 billion over the next 10 years. The Department of Defense projects automatic cuts will reduce its budget by around $37 billion this year and $52 billion in 2014. Lockheed Martin announced along with its 2013 earnings report that these budget cuts could reduce its sales by $825 million this year.

Luckily for Lockheed Martin, its industry-leading F-16, F-22, and F-35 fighter jet models may be in the clear — at least for now — as the Pentagon decides how to reduce its budget. Lockheed Martin continues to receive funding from the Department of Defense, including an additional $8.4 billion in funding this year to develop its turbulent F-35 joint strike fighter, a program that is seven years behind schedule. As a result of the domestic spending cuts, CEO Marillyn Hewson indicated that the company might begin concentrating its efforts on its overseas business, which currently makes up around 17 percent of its revenues. Recently, Lockheed Martin announced large contracts to bring its F-35 stealth fighter to both Japan and Israel.

E = Earnings are Increasing Year-Over-Year 

The automatic spending cuts, which began March 1, did not seem to impact Lockheed Martin's first quarter. In fact, the company posted strong earnings per share of $2.33 — a 14.78 percent increase from the previous year's quarter. Lockheed Martin has increased earnings in four of the last five quarters, but with revenue growth decreasing in the last three quarters, the company has increased profitability by reducing expenses. These cost-cutting initiatives come mainly in the form of job cuts, but as revenues continue to fall with sequestration measures, Lockheed Martin may not be able to keep reducing its costs. Lockheed Martin announces its second quarter earnings Tuesday.

	2013 Q1	2012 Q4	2012 Q3	2012 Q2	2012 Q1
Qtrly. EPS	$2.33	$1.74	$2.21	$2.38	$2.03
EPS Growth YoY	14.78%	-16.97%	5.24%	11.22%	35.33%
Revenue Growth YoY	-1.97%	-0.92%	-2.06%	3.27%	6.28%

E = Exceptional Performance Relative to Peers?

The entire defense industry is in a tough spot with looming sequestration of the Pentagon’s budget. Let's see how Lockheed Martin, the biggest government contractor by contracts, stacks up against the other major players: Boeing (NYSE:BA), Northrup Grumman (NYSE:NOC), and Raytheon (NYSE:RTN). All of the companies are trading at a relatively low price-to-equity ratio besides Boeing, mainly because Boeing also has exposure to the commercial aviation industry. Lockheed Martin has a significantly higher return on equity than its peers. Part of this higher ROE has to do with its substantial leverage. However, with a high credit rating and a strong interest coverage ratio, the company's high debt level should not worry investors for now. Lockheed Martin has a very attractive dividend yield of 4.1 percent and has increased its dividend by at least 10 percent in each of the last 10 years.

	LMT	BA	NOC	RTN
Trailing P/E	13.01	19.69	11.08	12.20
Operating Margin	9.15%	17.37%	12.31%	12.22%
ROE	302.40%	64.43%	19.60%	22.91%
Dividend Yield	4.10%	1.90%	2.80%	3.2%

T = Technicals on the Stock Chart are Strong

Lockheed Martin is currently trading at around $112.80, well above both its 200-day moving average of $97.53 and its 50-day moving average of $107.44. The stock has been on a tear since the beginning of March — it’s up around 30 percent since March 4. Additionally, Lockheed Martin experienced a “golden cross” — when the 50-day moving average crosses over the 200-day moving average — right around its first-quarter earnings announcement. A golden cross usually indicates strong investor sentiment.

Conclusion

Lockheed Martin has a lot to prove in its second-quarter earnings announcement, which is less than a week away. As the sequester continues to decrease profit margins and revenues on native soil, the defense giant must look elsewhere in order to grow its revenues. Additionally, in order to continue generating earnings growth, Lockheed Martin must keep reducing its costs. The stock currently trades at a relatively low price-to-earnings multiple of 13.01 and has an attractive dividend yield. The automatic spending cuts have not significantly affected Lockheed Martin, but the company could see some reduction in earnings growth and changing investor sentiment over the coming quarters. For now, Lockheed Martin is a WAIT AND SEE.

Francesca's Holdings: High Quality Retailer, Currently At A Bargain Bin Price

The consumer retail segment is one of my favorite areas to invest in, as it remains a relatively easy business for investors to evaluate and understand. For the most part, all that is necessary for a successful investment in the retail industry is a consistently strong and unique core product line that has the potential for significant expansion. While there are numerous mid-cap companies that I feel offer this kind of aggressive growth, one of which I own in Under Armour Inc. (UA) and another that I'd like to own in Michael Kors Holdings Ltd. (KORS), there are surprisingly not many small-cap companies that meet this criteria.

However, one company that has recently come to my attention seems to fit the mold quite well, Francesca's Holdings Corporation (FRAN). As a specialty retailer with a penchant for creating unusually high demand for its product line, Francesca's Holdings has fostered its image among consumers as an upscale boutique with an independent streak. By introducing new but limited product lines weekly, the company's stores have the rare ability to remain popular and innovative amongst consumers, all while being positioned with few direct competitors outside of local establishments.

When compared to most retail stocks of similar size, Francesca's Holdings offers vastly superior growth prospects at comparable valuation multiples. Currently, FRAN is unloved by the majority of investors and shares are off more than 30% from all-time highs. This presents investors with a rare opportunity to own superior retail growth at bargain pricing.

The Company:

Francesca's Holdings Corporation operates primarily as a specialty, boutique retailer in The United States. The company sells clothing apparel, jewelry and accessories to its core target audience of female shoppers, 18-35 years old. According to the company's website, Francesca's store locations are "designed and merchandised to feel like independently owned, upscale boutiques and provide our customers with an inviting,! intimate and differentiated shopping experience."

Originally founded in 1999, the company's first boutique shop was opened in Houston, Texas. In the past 14 years, the company has rapidly expanded its store count to include over 400 locations, as of June 2013, across 45 states in the US. The Texas-based company also operates a popular website, francescas.com, that ships the retailer's limited supply items throughout the continental United States.

The Stock:

Unfortunately, performance for shares of FRAN has been relatively weak since the company's initial public offering of stock a little over two years ago. FRAN has significantly underperformed many of its peers as well as the general indices by a wide margin. The following is a breakdown of the equity's performance since its IPO on July 21, 2011 compared to the S&P 500 (SPY) index:

Equity/Index	FRAN	SPY
Return Since 7/21/11	-11.3%	31.33%
1-Yr. Return	-20.2%	23.84%
YTD Return	-5.4%	19.85%

(Numbers from YCharts.com, as of 8/07/13, numbers include dividends reinvested where applicable)

On every major comparative basis, FRAN has underperformed the S&P 500 significantly over the last two years, which is especially concerning considering the consumer retail sector as a whole has fared very well in the stated time period. The following is a two-year chart of FRAN (included are 50-day 100-day, 200-day moving averages as well as MACD and slow stochastic indica! tors):

(click to enlarge)

(Chart courtesy of Yahoo! Finance, as of 8/06/13)

The two-year chart of FRAN, which begins a few weeks after the company's IPO, is not strong as an overall uptrend has yet to be established. MACD and stochastic indicators show heavy and extended selling pressure amidst relatively weak buying pressure. Also worth noting is that shares of FRAN are currently trading below all major moving average support and as such remain susceptible to further price declines. From a technical perspective, FRAN's chart is very weak and warrants caution going forward.

Growth and Valuation:

For comparative purposes, alongside Francesca's Holdings, I have chosen to include the growth rates of ANN Inc. (ANN), owner and operator of Ann Taylor and LOFT brands, and Chico's FAS Inc. (CHS). Although Francesca's Holdings manages to separate itself from the majority of companies that target similar consumer groups, ANN and CHS are of similar size, in terms of market capitalization, and operate in similar retail segments and therefore serve as reliable comparisons.

Company*	ANN	CHS	FRAN
Revenue Growth (2013)	6.4%	5.7%	26%
Revenue Growth (2014)	6.6%	10%	20.9%
Revenue Growth (2-Yr. Avg.)	6.5%	7.85%	23.45%
EPS Growth (2013)	5.9%	5.5%	23.8%
EPS Growth (2014)	16.4%	16.5%	22.3%
EPS Growth (2-Yr. Avg.)	11.15%	11%	23.05%

(Numbers from Yahoo! Finance, as of 8/07/13)

*All three listed companies' current fiscal years end in January 2014

Even though all three companies are projected to grow revenue and earnings per share at solid rates in 2013-2014, FRAN is expected to experience growth in both areas that is more than double that of ANN and CHS on average. Particularly strong in comparison to peers is FRAN's revenue growth, which is projected to be approximately three times that of both ANN and CHS over the next two years.

Considering the vastly superior growth that is currently projected for FRAN, investors might expect the stock to trade at valuation levels that greatly exceeds those of its peers. Fortunately, that is not the case. The following is a breakdown of all three companies' current and future price/earnings ratios:

Company	ANN	CHS	FRAN
Trailing P/E	16.38	15.34	22.28
Forward P/E	! 12.91	12.24	15.28

(Numbers from Yahoo! Finance, as of 8/07/13)

While FRAN is the most expensive out of all listed peers on both a trailing 12-month basis and a future 12-month basis, the stock's valuation appears compelling considering the company's robust growth relative to peers. On a forward-looking basis, FRAN's P/E of 15.28 is not too out of line with ANN's 12.91 and CHS's 12.24 despite the stock being projected to offer nearly triple the revenue growth and more than double the EPS growth of both listed competitors.

Growth Catalysts:

What makes Francesca's Holdings stand out from the majority of large-scale, specialty retail competitors is the company's ability to constantly update its product inventory, which it accomplishes by delivering new items to stores every five days, and the limited availability of the brand's popular wares. With this successful strategy already in place and proven, management has a three-pronged approach to deliver consistent growth going forward.

The three main drivers of growth for the company are expansion via new boutique opening initiatives, growth in the brand's direct-to-consumer channel and various operational improvements. Of paramount importance, and despite investors' seeming disregard for the fact, is that Francesca's Holdings' recent earnings release and conference call seemed to confirm that the company is making significant progress in all three regards.

In terms of new store openings, Francesca's Holdings is expanding at a blistering pace. The company managed to open 56 new boutiques in the first quarter alone, which is equal to 13.86% growth of the total store count and up significantly from Q1 2012, which saw the company open up 44 new locations. Perhaps even more impressive is that management also raised store growth guidance in the most recent earnings call and now expects to open a total of 85 new stores in fiscal 2013 instead ! of the pr! eviously anticipated 80. CEO Neill P. Davis explained, "Several new location opportunities have materialized over the course of the first quarter. And as a result, we're expanding our new boutique-opening target for the full year to 85."

This recently depicted growth in store locations for Francesca's Holdings should give investors confidence that management will be able to make good on their stated goal of reaching 900 total locations for The United States in the future. At the end of 2013, management expects the company's store count to be 445, which would be 49% of the long-term goal of 900 domestic locations.

Moving past 2013, management has already begun to send out letters of intent to open at least an additional 60 locations in fiscal 2014. Considering that growth in store openings is slowing, as 2012 saw 26.85% growth, 2013 is projected to see 23.6% growth and 2014 is tentatively projected to see 13.48%, a very conservative approach would be to estimate 10% growth in store openings after 2014. At this rate, Francesca's Holdings would reach management's goal of 900 locations in six-and-a-half years. Of course, management's willingness to capitalize on burgeoning opportunities, as it has this year by planning to open an extra 5 stores, suggests that the goal of 900 domestic locations could happen much sooner.

Secondly, management at Francesca's Holdings has taken strides to improve the company's online experience in what seems like an attempt to make the website more comparable to the unique boutique store experience and this strategy runs parallel with management's plans to improve operating efficiency. Since the beginning of a major overhaul in late 2012, which focused on providing a cleaner and more easily navigable interface, the site has experienced increased user traffic and conversion rates, which has led to a 23% gain in the company's email address database over the prior quarter.

Additionally, the process is still ongoing and management expects to make fu! rther pro! gress in terms of increased customer service, personal shopping and improved data collection. Perhaps the largest potential driver of growth, which has remained essentially unmentioned by management, is the opportunity for expansion of the online business into new geographic markets. Currently, francescas.com does not ship to Alaska, Hawaii or any U.S. territories as well as Post Office boxes or Army Post Office boxes. Most importantly, the company does not ship internationally and this could be a potential massive driver of growth, as the company's unique shopping experience should have little trouble translating well overseas.

In summation, Francesca's Holdings' biggest strength is its brand's ability to remain new and fresh in the minds of its target audience. As long as the company can successfully drive demand for its wares through constant new product introduction and limited supply runs, then the growth that comes from new store openings and broader direct to consumer channels will inevitably follow.

Risks:

A primary concern for investors is a potential slowdown in revenue and earnings per share growth, especially because the company's currently above-average projected growth is what allows it to carry a higher multiple than peers. This was exemplified in Francesca's Holdings' most recent conference call in which the company's reported net revenue of $79 million fell slightly short of the consensus estimate of $79.56 million.

However, more concerning is that management also provided ranges of revenue and EPS guidance for the rest of fiscal 2013 that were again slightly below the average analyst estimates. Management now expects fiscal 2013 EPS to be in a range of $1.27-$1.30, which is down to flat from the average estimate of $1.30, and revenue to be in a range of $365-$370 million, which is down to flat from the average estimate of $370 million. It is worth noting that fiscal 2013 EPS and revenue could still come in at the higher end of the company's range, which would be! in-line ! with Wall Street estimates and would make the stock's sell-off unwarranted.

Perhaps most important is that the company's recent earnings and guidance, as disappointing as they may be to some investors, still show year-over-year growth in terms of both revenue and earnings per share. In the most recently reported quarter, EPS grew an impressive 30% year-over-year while revenue grew 28.83%. Also, management's guidance still calls for yearly EPS growth of 22%-25% and yearly revenue growth of 23.1%-24.8%.

Conclusion:

Francesca's Holdings is a unique retailer that has an edge in the competitive world of women's retail. With an interesting ability to keep company-owned stores fresh and exciting by way of a constantly updated and limited product inventory, the company will most likely be able to capitalize on rising consumer sentiment and spending in the future. Although there is still significant room for growth in domestic markets, including a store count that could stand to double in six years or less, the as of yet untapped international potential for the Francesca's brand likely remains the largest catalyst for the company's future growth.

As a stock, FRAN offers robust growth that outclasses most of its competitors in terms of both revenue and earnings per share, all while trading at only slightly elevated valuation multiples. Despite the company's most recent earnings/guidance coming in slightly below expectations, the fact remains that the stock is still poised to grow aggressively on a year-over-year basis. Although the stock's current downtrend is disappointing, it is also what is providing investors with the rare opportunity to purchase an above-average retailer at average valuation levels.

Source: Francesca's Holdings: High Quality Retailer, Currently At A Bargain Bin Price

Disclosure: I am long UA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Ketchup switch-up at McDonald's

Would you like ketchup with that?

NEW YORK (CNNMoney) If you'd like fries with that, you may have to settle for different ketchup on the side.

McDonald's (MCD, Fortune 500) is ending its relationship of four decades with Heinz, citing "recent management changes." The ketchup maker recently installed as CEO a former top executive of rival Burger King (BKW).

Most McDonald's customers won't notice the change, the company suggested.

"We only used Heinz in the Minneapolis and Pittsburgh markets in the U.S," said Becca Hary, McDonalds' director of global media relations. "Globally, Heinz represents a small percentage of McDonald's condiment and sauce business."

Hary pledged "a smooth and orderly transition" over time to new ketchup suppliers in those cities.

A senior official with Heinz said the company had "virtually no business" with McDonald's.

The condiment change appears unrelated to other shuffles at the fast food giant. It is adjusting the famed Dollar Menu, including adding pricier options. McDonald's reported this month that sales grew only slightly in the past year.

Bernardo Hees, the new Heinz chief, led Burger King through a menu redesign of its own.

Hot Medical Stocks To Own Right Now

These two big tech companies are facing challenges in the years ahead but MoneyShow's Jim Jubak explains why he has a favorite.

If you need a reminder that Intel isn't Microsoft, the Intel's announcement of a new line of chips called Quark, on September 11, should be a good place to start. Now Microsoft—it's in a really kind of bind, because what they seem to have to do to move away from their dependence on PC software, is to help the PC industry make the transition onto a whole new set of devices, so they bought Nokia, they've done a tablet, they're pushing these devices. Well this is a software company that has to do investments in hardware in order to get the hardware companies to move up fast enough, so they can create a new market force. You could argue, and I would, that Microsoft is moving away from its traditional strengths in software, into a field where, despite the success of the Xbox, its record is kind of mixed. Remember the Zune—okay.

Intel, on the other hand, has got a similar problem, that PC sales are slowing; that the market seems to moving away from the desktop to mobile, whether it's a Smartphone or a tablet or an iPad-like device and Intel's been relatively late in coming to this market, so it doesn't really have much market share. It doesn't have chips that are very popular, haven't been designed in. It's really trailing people like Qualcomm and ARM Holdings. The Quark however, shows, I think, that Intel doesn't need to go out and start making devices. The Quark is a line of smaller, lower powered chips designed for a new emerging market and this is the sort of embedded market, the idea that you're going to have intelligent refrigerators that will be somehow connected to the internet and a part of that or intelligent posters. The Quark is actually small enough so that Intel says one of the uses could be ingestible diagnostic devices—medical devices that give readings on body conditions that you can actually swallow and give you a reading from the inside about certain processes. The whole point is that this really plays, not to Intel's moving to another area, but to Intel's strength.

Hot Medical Stocks To Own Right Now: Johnson & Johnson(JNJ)

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.

Advisors' Opinion:

• [By Dan Caplinger]

  But looming larger is the specter of increased competition in prostate cancer. Late last month, Medivation (NASDAQ: MDVN  ) got a favorable opinion from an advisory panel for the European Medicine Agency for its Xtandi treatment, which will expand the drug's reach beyond the U.S., where the FDA approved Xtandi last August. Moreover, Johnson & Johnson's (NYSE: JNJ  ) Zytiga saw sales grow 72% in the company's first-quarter report, with even faster growth internationally. Essentially, what the success of Dendreon's rivals shows is that the company is running out of time to carve out its niche in the industry.

Hot Medical Stocks To Own Right Now: Zynex Inc (ZYXI)

Zynex, Inc. operates under three primary business segments: Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions. Zynex Medical engineers, manufactures, markets and sells its design of electrotherapy medical devices used for pain management and rehabilitation. Zynex Medical�� product lines are cleared by the United States Food and Drug Administration (FDA) and sold worldwide. Zynex NeuroDiagnostics, sells the Company's NeuroMove device designed to help stroke and spinal cord injury patients and is seeking opportunities into markets for electromyogram (EMG), electroencephalogram (EEG), sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. As of January 30, 2012, Zynex Monitoring Solutions was in the development-stage and was established to develop and market medical devices for non-invasive cardiac monitoring. In February 2012, the Company announced the creation of a European wholly owned subsidiary in Denmark. In June 2012, the Company acquired ZYNEX.com Internet domain.

The Company�� products include TruWave TENS, ValuTENS II, IF8100 Interferential Current, E-Wave Muscle Stimulator, NeuroMove NM900, PGS-123 Pulsed-Galvanic Stimulator, NuTrac Pelvator, Knapp Knee Brace and ValuTENS III. TruWave TENS is used for management and symptomatic relief of chronic intractable pain, post-traumatic and post-surgical Pain. ValuTENS II is used for the indications of chronic and acute pain symptoms and post-operative pain. IF8100 Interferential Current is used for symptomatic relief of chronic intractable pain, post-traumatic and post-surgical pain. E-Wave Muscle Stimulator is used for muscle re-education, prevention or retardation of disuse atrophy, increasing local blood circulation, maintaining or increasing range of motion and relaxation of muscle spasms. NeuroMove NM900 is used for stroke rehab by muscle re-education, relaxation of muscle spasms, prevention of retardation of disuse atrophy, increase local blo! od circulation, muscle re-education and maintaining range of motion. PGS-123 Pulsed-Galvanic Stimulator is used for muscle re-education, prevention of retardation of disuse atrophy, increase local blood circulation, maintain or increase range of motion and relaxation of muscle spasms. NuTrac Pelvator - Pelvic Floor Stimulator provides electrical stimulation and neuromuscular re-education for the purpose of rehabilitation of weak pelvic floor muscles for the treatment of stress, urge and mix urinary incontinence in women. ValuTENS III is used for chronic and acute pain symptoms and post-operative pain. Knapp Knee Brace is used for the indications of MCL and LCL Sprains, pre and post-op care of meniscus injuries, mild to moderate ACL and PCL Sprains and general knee instability.

Top 10 High Tech Stocks To Buy For 2014: Applied Nanotech Holdings Inc (APNT)

Applied Nanotech Holdings, Inc., incorporated on May 22, 1989, is engaged in nanotechnology research and development business. The Company's nanotechnology research involves performing contract research and development services for others to develop products and materials for new applications, and then leveraging this research by applying it to other similar applications in other industries. The Company also develops intellectual property (IP) around its products and technologies. The Company develops five technology platforms: nanosensor technology; nanocomposites, based on carbon nanotube composites; thermal management materials; nanoelectronics applications, and electron emission activities, primarily in the display area. The Company's electron emission IP is divided into display activities and non-display activities. Applied Nanotech Holdings, Inc. is the parent company. Applied Nanotech, Inc. (ANI) is a subsidiary of ANHI. During the year ended December 31, 2012, the Company formed EZDiagnostix, Inc., (EZDX).

Sensors

The Company develops sensors based on ion mobility sensor technology and differential mobility spectroscopy. The Company is involved in projects to develop Mercaptan and Methane sensors for uses in the natural gas industry. The Company is also applying this technology to other applications, including agricultural pathology, wound care, and breath analysis. The Company develops hydrogen sensor for use in the measurement of hydrogen in power transformer products. The Company develops carbon monoxide sensor that can last for 10,000 hours on a single battery. The Company's carbon nanotube technology is for use in biosensors. Sensors based on carbon nanotubes or other nanomaterials can be used to detect chemical, organic, or biological warfare agents, as well as explosives, hydrogen, ammonia and numerous other chemicals.

Nanocomposites

The Company is in the advanced stages of development of nanomaterials using carbon nanotube (CNT) and! other composites. Epoxies are used in industries with worldwide markets, with applications, including adhesives, paints, coatings, and composites. In addition to epoxy resins, the Company develops other types of resins, including polyesters and vinyl esters. Vinyl esters are used in a variety of industrial applications, including storage tanks, piping, and construction. The Company develops a process for coating nylon pellets with CNTs to improves electrical conductivity. Nylon 6 with improved electrical conductivity can be used for its anti-static qualities, electrostatic discharge, and electromagnetic/RF shielding.

Thermal Management

The Company markets thermal management material called CarbAl. CarbAl provides a passive thermal management solution for temperature control issues that plague electronics manufacturers. CarbAl is a carbon based metal nanocomposite comprised of 80% carbonaceous matrix and a dispersed metal component of 20% aluminum. The Company also develops a simplified version of CarbAl based on graphite.

Conductive Inks

The Company develops aluminum and silver inks and pastes that is ideal for use in the production of solar cells. The Company also develops aluminum paste that can be used in current solar cell production.

The Company competes with Zyvex Performance Materials, GSI Creos, Amroy Europe, Ltd., DuPont and Ferro

Advisors' Opinion:

• [By Anuchit Nguyen]

  India�� S&P BSE Sensex rose, holding at a three-year high, amid better-than-estimated corporate earnings. Engineering company Larsen & Toubro Ltd. (LT) rallied to a three-month high and Asian Paints Ltd. (APNT) surged about 6 percent after reporting profit that beat forecasts.

Hot Medical Stocks To Own Right Now: Baxano Surgical Inc (BAXS)

Baxano Surgical Inc, formerly TranS1 Inc., incorporated in May 2000, is a medical device company focused on designing, developing and marketing products that implement its approach to treat degenerative conditions of the spine affecting the lower lumbar region. It develops its pre-sacral approach to allow spine surgeons to access and treat intervertebral spaces without compromising important surrounding soft tissue, nerves and bone structures. As of December 31, 2011, the Company was marketing the AxiaLIF family of products for single and multilevel lumbar fusion, the Vectre and Avatar lumbar posterior fixation systems and Bi-Ostetic bone void filler, a biologics product. All of the Company�� AxiaLIF products are delivered using its pre-sacral approach. It generates revenue from the sales of itsimplants and disposable surgical instruments. It has two distinct sales methods. The first method is when implants and/or disposable surgical instruments are sold directly to hospitals or surgical centers for the purpose of conducting a scheduled surgery. In November 2011, the Company launched its VEO Lateral Access and Interbody Fusion System.

The Company sells its products directly to hospitals and surgical centers in the United States and certain European countries, and to independent distributors elsewhere. The Company also markets its products at various industry conferences and through industry organized surgical training course. The Company has developed and markets two fusion products that are delivered using its pre-sacral approach include AxiaLIF 1L and AxiaLIF 2L+. Its products include surgical instruments for creating an access route to the L4/L5/S1 vertebral bodies, fusion implants, as well as supplemental stabilization products.

AxiaLIF Lumbar Fusion Implants

The Company markets AxiaLIF family of products for single and two level lumbar fusion, the VEO lateral access and interbody fusion system, the Vectre and Avatar posterior fixation systems and Bi-Ostet! ic bone void filler, a biologics product. The Company also market products that may be used with its AxiaLIF surgical approach, including bowel retractors, a bone graft harvesting system and additional discectomy tools. Its AxiaLIF implants and instruments, combined with facet screws or pedicle screws, provide surgeons with the tools necessary to perform a lumbar fusion.

The Company's AxiaLIF 1L and AxiaLIF 2L+ implants are threaded titanium rods, that come in varying lengths to enable one-level L5/S1 fusions and two-level L4/L5/S1 fusions. As they are implanted, its design allows for the separation of the vertebrae to restore disc height.

VEO Lateral Access and Interbody Fusion System

This system features a two-stage retraction method that focuses on nerve visualization followed by controlled retraction. The VEO Lateral System is designed for direct visualization of the psoas muscles and adjacent nerves prior to muscle dissection, and features a full range of PEEK lateral interbody implants and a variety of ergonomic instruments.

TranS1 Access and Disc Preparation Instruments

The Company�� pre-sacral approach requires the use of a sterile set of surgical instruments that are used to create a safe and reproducible working channel and to prepare the disc and vertebrae for its implant. The instrumentation contained in the set includes stainless steel navigation tools and tubular dissectors to create the working channel, as well as nitinol cutters and brushes to cut and remove the degenerated disc material and prepares the disc space for its implant and the bone graft material.

Vectre Facet Screw System

The Company's Vectre facet screw system offers a cannulated facet screw inserted over a guidewire to provide stability while reducing the muscle and tissue trauma associated with conventional pedicle screws. The Vectre system features offer a reproducible posterior fixation option in select patients.

A! VATAR Ped! icle Screw System

In January 2010, the Company entered into an agreement to distribute Avatar, a pedicle screw system. Avatar can be used with or without its implants to provide lumbar posterior fixation. The AVATAR MIS System offers cannulated pedicle screws inserted over a guidewire to reduce muscle and tissue trauma. Extended tabs integrated to the screws provide a pathway for implantation of the rod while minimizing tissue dissection.

Bi-Ostetic Bone Void Filler

In February 2010, TranS1 entered into an agreement to sell Bi-Ostetic, an osteoconductive bone substitute. Bi-Ostetic is an alternative to allografts or cadaver bone. The spongy granules are bioceramics with interconnected porosity that mimic the cancellous bone structure.

Iliac Crest Bone Graft Harvesting System

The Company�� Iliac Crest Bone Graft Harvesting System is developed to aid surgeons in harvesting iliac crest autograft via a minimally invasive approach. Use of autograft, which is osteogenic, osteoinductive and osteoconductive, further improves the chances of fusion success. It provides structural support as well as scaffolding for new bone growth.

The Company competes with Medtronic Sofamor Danek, Johnson & Johnson DePuy Spine, Stryker Spine, NuVasive, Zimmer Spine, Synthes, Orthofix International, Globus Medical and Alphatec Spine.

Hot Medical Stocks To Own Right Now: Inergetics Inc (NRTI)

Inergetics, Inc., formerly Millennium Biotechnologies Group, Inc., incorporated on November 9, 2000, is a holding company for its sole operating subsidiary, Millennium Biotechnologies, Inc. (Millennium). The Company through its subsidiary Millennium, engages in the research, development, and marketing of specialized nutritional supplements as an adjunct to medical treatments for select medical conditions, as well as for athletes seeking improved recovery and advanced performance. The Company markets products, which are targeted toward immuno-compromised individuals undergoing medical treatment for diseases, such as cancer, as well as wound healing and post-surgical healing and geriatric patients in long-term care facilities among other conditions. In January 2013, the Company acquired Bikini Ready and SlimTrim brands from Whole Products Group.

The Company�� product portfolio include, Resurgex Select, Ready-To Drink Resurgex Essential and Ready-To-Drink Resurgex Essential Plus. Resurgex Select is a whole foods-based, calorically dense, high-protein powdered nutritional formula developed for cancer patients undergoing chemotherapy or radiation treatments. Resurgex Essential and Resurgex Essential Plus represent Millennium�� Ready-to-Drink product line and are being sold into the Long-Term Care geriatric markets.

Resurgex Select

Resurgex Select is a whole foods-based nutritional product that is designed to be used throughout the course of cancer treatment (chemotherapy, radiation, etc.), as many times patients lose weight and cannot consume adequate nutrition. This product combines dietary fiber (3 g), low sugar (5 g), and high protein (15 g) with no added antioxidants to be a high-calorie (350 calorie) supplement. It is available in three flavors (Vanilla Bean, Chocolate Fudge, and Fruit Smoothie) and each can be mixed with water, milk, juices, or in soft cold foods, such as yogurt, apple sauce or pudding.

Surgex

Surgex (www.surgexspor! ts.com), is a nutritional support formula that aims to address the concerns of many elite athletes who suffer from symptoms, such as fatigue, lean muscle loss, lactic acid buildup, oxidative stress, and stressed immune systems. This formula is designed to improve recovery parameters in efforts to enhance the performance of professional and collegiate athletes.

Resurgex Essential

The Essential line is a ready-to-drink alternative to Ensure and Boost designed to be marketed into the long-term care channel. Resurgex Essential has 250 whole food calories containing no corn syrup or corn oil. The product also contains fruit and vegetable extracts, and FOS Fiber to provide calories and taste.

The Company competes with Nestle and Abbott Laboratories Inc.

Hot Medical Stocks To Own Right Now: InspireMD Inc (NSPR)

InspireMD, Inc., incorporated on February 29, 2008, is a medical device company. The Company is focusing on the development and commercialization of its stent platform technology, MGuard. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. Its initial products are marketed for use mainly in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). The Company�� products include MGuard Coronary Plus Bio-Stable Mesh, MGuard Peripheral Plus Bio-Stable Mesh, MGuard Carotid Plus Bio-Stable Mesh and MGuard Coronary Plus Bio-Absorbable Drug-Eluting Mesh. Its initial MGuard Coronary products incorporated a stainless steel stent. The Company subsequently replaced this stainless steel platform with a more advanced cobalt-chromium based platform, which the Company refers to as the MGuard PrimeTM version of its MGuard Coronary. The Company operates in Germany through its wholly owned subsidiary InspireMD GmbH.

The Company focuses on applying its technology to develop additional products used for other vascular procedures, specifically carotid (the arteries that supply blood to the brain) and peripheral (other arteries) procedures. The MGuard stent is an embolic protection device based on a protective sleeve, which is constructed out of an ultra-thin polymer mesh and wrapped around the stent. The protective sleeve is comprised of a micron level fiber-knitted mesh, engineered in an optimal geometric configuration and designed for utmost flexibility while retaining strength characteristics of the fiber material.

MGuard - Coronary Applications

The Company�� MGuard Coronary with a bio-stable mesh and its MGuard Coronary with a drug-eluting mesh focuses on the treatment of coronary arterial disease. The Company�� first MGuard product, the MGuard Coronary with a bio-stable mesh, is comprised of its mesh sleeve wrapped around a! bare-metal stent. The bio-absorbability of MGuard Coronary with a drug eluting bio-absorbable mesh is intended to improve upon the bio-absorbability of other drug-eluting stents, in light of the wide surface area of the mesh and the small diameter of the fiber.

MGuard - Carotid Applications

The Company focuses on marketing its mesh sleeve coupled with a self-expandable stent for use in carotid-applications. Expandable stent is a stent that expands without balloon dilation pressure or need of an inflation balloon. This product is under development, although the Company has temporarily delayed its development until additional funding is secured.

MGuard - Peripheral Applications

Peripheral Artery Disease, also known as peripheral vascular disease, is characterized by the accumulation of plaque in arteries in the legs, need for amputation of affected joints or even death, when untreated. Peripheral Artery Disease is treated either by trying to clear the artery of the blockage, or by implanting a stent in the affected area to push the blockage out of the way of normal blood flow.

The Company competes with Abbott Laboratories, Boston Scientific Corporation, Johnson & Johnson, Medtronic, Inc., The Sorin Group, Xtent, Inc., Cinvention AG, OrbusNeich, Biotronik SE & Co. KG, Svelte Medical Systems, Inc., Reva Inc. and Stentys SA.

Hot Medical Stocks To Own Right Now: Navidea Biopharmaceuticals Inc (NAVB)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-center Phase II trial and three multi-center Phase II trials inv! olving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has been studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Advisors' Opinion:

• [By Keith Speights]

  3. Navidea Biopharmaceuticals (NYSEMKT: NAVB  )
  Some investors were likely befuddled by Navidea's stock action earlier this year. The company received FDA approval in March for Lymphoseek, its radiopharmaceutical agent used for imaging lymph nodes in patients with breast cancer or melanoma. That was great news, but shares dropped quickly and still haven't returned to previous levels.

• [By Sean Williams]

  Diagnostics can also play an important role in early and late-stage breast cancer diagnoses. Navidea Biopharmaceuticals (NYSEMKT: NAVB  ) had Lymphoseek, its external lymph-node imaging and intra-operative lymphatic mapping diagnostic device, approved by the Food and Drug Administration earlier this year to help doctors stage cancer. Discovering whether breast cancer has invaded adjacent lymph nodes has never been easier or safer thanks to Lymphoseek, and it can dramatically aid physicians in determining the best course of action for breast cancer patients.

• [By Sean Williams]

  Another prime example here would be Navidea Biopharmaceuticals' (NYSEMKT: NAVB  ) Lymphoseek which is an injectable agent used in external lymph-node imaging and intra-operative lymphatic mapping. In English this means it will dramatically improve the staging and treatment options for patients with breast cancer. Being that breast cancer was also listed as a commonly misdiagnosed cancer, this is a big step in the right direction for patient care.

Hot Medical Stocks To Own Right Now: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

The Most Important Trend for Traders to Track

 With the market still down from its highs... and "gloom and doom" news in the headlines... it's important for traders and investors to step back and take the "long view."   When we say the "long view," we mean looking at the stock market from a multiyear viewpoint... not just a few weeks or a few months.   Taking this view will help you make more money over the coming months...    Back in November, the benchmark S&P 500 Index had fallen 4% from its highs. Bearish news was dominating the headlines. But as we showed you, in the "long view," stocks were locked in a long series of "higher highs and higher lows."   This simply means each push higher results in higher prices than the previous push (higher highs). It also means each correction stops short of the previous correction (higher lows).   This is the definition of an uptrend. It is classic bull market price action. About a week after our note, the market "made a stand," stopped falling, and began a 23% rally.   Anyone who kept the "long view" in mind was able to use the correction to establish positions in cheap, high-quality stocks. The rally that followed handed those traders big, short-term gains.    Today, once again, we're hearing "doom and gloom" from all sides. But many years of trading have taught us that minding the "long view" – the overall trend – is a key component of successful trading.   When sizing up the overall trend in stocks, we see that the S&P 500 could fall more and still stay in its uptrend...     Old market hands say it's reasonable – even healthy – for a bull market to "retrace" 50% of a big gain before heading higher. If the S&P 500 retraces 50% of the gain it saw from its bottom in November to its high last month, it would decline an additional 6.5% to reach the 1,511 area.   We'll keep an eye on that level... But until stocks fall that far, we'll consider the uptrend intact.    Understand, we don't have a bias or an agenda to defend. As we noted last week, some smart folks are preparing for a crisis-level selloff. And if the facts change, we'll change our minds. In our DailyWealth Trader service, we consider ourselves "mercenaries"...   We'll go to whichever side of the market is offering the most money for the least amount of risk.   While stocks could stay weak and correct in the short term, we're keeping the "long view" in mind. We know big, multiyear trends tend to last longer than most people believe is possible. We know public sentiment toward stocks isn't rosy, which is a positive for stocks.   So we're using this correction to find great opportunities to go long.   – Amber Lee Mason and Brian Hunt

Merck Insomnia Therapy Gets Complete Response Letter

Pharmaceutical giant Merck (NYSE: MRK  ) is bound to lose a little sleep over this. The FDA sent it a complete response letter regarding its new drug application for an investigational medicine for the treatment of insomnia, suvorexant.

The CRL said the pharma's idea to start elderly patients on a 15 mg regimen and move them up to 30 mg if necessary was not safe. Nor was Merck's idea to start non-elderly patients at 20 mg and kick them up to 40 mg if necessary. Instead, the regulatory agency said it was best to start most patients off at 10 mg and, if it was well tolerated, they could move up to 15 mg or 20 mg. Before Merck could move forward, however, it would have to have a 10 mg dosage already in hand.

Merck said it doesn't believe it would need to do additional clinical studies for the 10 mg dosage of suvorexant, but would need to do manufacturing studies. Analysts have speculated it might cause a delay of a year or more to conduct such studies. They estimate the drug could have sales of $700 million annually by 2018.

If approved, suvorexant would be the first in a new class of medicines, called orexin receptor antagonists, for use in patients with insomnia. Orexins are neurotransmitters in the brain that help to keep a person awake and suvorexant blocks their action, allowing them to go to sleep.

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A 5 mg dose of suvorexant was also recommended by the FDA for patients taking concomitant moderate CYP3A4 inhibitors. Merck will be discussing with the regulatory body whether additional studies will be required to support the lower dosage.

Merck stock closed down $0.13 today at $46.32 per share.

Crop Progress: Improved Weather Helped Crop Conditions

Crop conditions were enhanced over the past three week hiatus of the Crop Progress Report during the recent Federal Government shutdown. Harvest is picking up steam, but still trailing historical averages.

As of October 20, 2013, 14% of the corn crop was in poor or very poor condition, a decrease of 2% from three weeks prior. Corn in good or excellent condition was 60%, compared to 55% from three weeks ago. Corn that has been harvested was at 39%, behind the five-year average of 53%.

Soybean condition was 14% in poor or very poor condition, a 1% decrease from three weeks ago. Soybeans in good or excellent condition was 57%, an increase of 4% from three weeks prior. A total of 63% of the soybean crop has been harvested, 6% behind the five year average.

Winter wheat planted as of October 20, 2013, was 79%, in line with the five-year average. 53% of the winter wheat crop has emerged, 1% behind the five-year average.

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December futures for corn ended the week at $4.44 per bushel, a 1.6% increase from last week. November soybeans ended the week at $13.03, a 2.4% increase from last week, and December wheat ended the week at $6.99, a 1.0% increase from last week. Year to year corn prices are down 41.7%, soybeans are down 15.7%, and wheat is down 20.4%.

Source: Crop Progress: Improved Weather Helped Crop Conditions

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. (More...)