Sunday, March 30, 2014

3 Stocks for an Income Investor's Roth IRA

The Roth IRA contribution deadline is looming. With less than two weeks left, it's time to fund your account if you haven't already done so. Let's quickly review why a Roth IRA is so critically important in saving for your retirement. Then we'll look at three great stocks for a dividend investor's Roth.

Best bang for your buck
Your most powerful way to save for retirement is a Roth IRA. It allows after-tax contributions in exchange for tax-free income in retirement. If you haven't made your contribution for 2012, you have until the tax-filing deadline to do so. If you're under age 50, you can fork over $5,000 into a Roth. If you are age 50 or older, you can contribute an additional $1,000.

If you're flush with cash, strongly consider getting a jump on your 2013 contribution. The limits are more generous -- $5,500 if you're under age 50. If you're 50 or older, you can still contribute that additional $1,000.

But keep in mind that some individuals are excluded from contributing to a Roth. If you're a high-wage earner, familiarize yourself with Roth eligibility requirements before contributing.

Stock ideas for the dividend investor
For income-desiring investors, there are many solid dividend-paying stocks trading at good buys in today's market. I've found three companies with competitive positions whose stocks boast strong dividend yields and attractive valuations. They each have forward price-to-earnings ratios less than the S&P 500's current P/E of 18. And while the average dividend yield of S&P 500 companies is 1.9%, these companies pay yields greater than the market.

Illinois Tool Works (NYSE: ITW  )
This Illinois-based manufacturer will likely benefit as spending ramps up in transportation and construction, two industries that make up a healthy portion of the company's revenue. Illinois Tool Works holds nearly 20,000 patents, indicating a successful history of innovation. The century-old company boasts a forward price-to-earnings ratio of 13 and a 2.5% dividend yield. 

US Bancorp (NYSE: USB  )
A top holding of Warren Buffett's Berkshire Hathaway, it's what US Bancorp has avoided that makes it appealing for investors: The bank didn't aggressively lend to the extent of its too-big-to-fail counterparts. The conservative nature of this regional bank has helped it return healthy shareholder value during the past several decades. The stock pays a 2.3% dividend yield and boasts a forward P/E ratio of 10. 

Coca-Cola (NYSE: KO  )
Another Berkshire Hathaway favorite, Coca-Cola dominates Interbrand's "Best Global Brand" list, having secured its top-spot status every year since the list's inception. With its beloved and blockbuster brand, the company enjoys fantastic margins and robust sales growth despite global economic headwinds. As a tasty bonus for shareholders, Coca-Cola pays a 2.8% dividend yield, which it's increased for 50 consecutive years.

Foolish bottom line
The Roth IRA contribution deadline is fast approaching. So, don't miss your opportunity to fund a retirement account and secure your financial future. Consider these three great dividend-paying stocks for your contribution dollars today.

Coca-Cola has long been a favorite stock of dividend investors. The cola giant's wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you'll want to click here now and get started!

Thursday, March 27, 2014

Diet Coke Slurpee RIP: But not from brain freeze

It's not yet summer -- barely spring -- but the new Diet Coke Slurpee briefly sold at 7-Eleven already has melted down.

Just one month after rolling out the Diet Coke Frost Cherry Slurpee, the frozen concoction has been removed from 7-Eleven stores nationally, Coca-Cola and 7-Eleven confirmed in a joint statement. The problem: It didn't freeze right.

"A significant number of stores experienced dispensing quality issues involving the product freezing consistency," the joint statement says. Never mind that last month, Coca-Cola executives boasted about cracking the code after 31 years on how to blend the world's best-selling diet soft drink into a frozen beverage.

It's back to the drawing board.

"In keeping with both companies' quality standards, 7-Eleven has removed the product," says the statement.

Executives from both companies declined to discuss the snafu any further. No clue if the beverage will ultimately return to 7-Eleven or elsewhere. Coca-Cola had previously announced plans to add other diet flavors to the line later this spring and expand the frozen beverage to other retailers.

John Sicher, editor of Beverage Digest, the specialty trade publication, says the process of freezing diet sodas isn't simple. "Creating frozen diet carbonated beverages is tricky. The diet sweeteners don't facilitate viscosity control like sugar or corn sweetener," he says, in an email.

Executives from Coke and 7-Eleven note there are no health or safety issues with the product.

But one brand guru notes that while the two consumer product giants should certainly have done better product testing, they won't walk off with too much Slurpee on their collective faces.

"A major trend today is high tolerance for trial and error," says Steven Addis, CEO of the branding agency Addis. Companies, he says, tend to get more credit for pushing the boundaries. "Consumers are more open to companies trying new things and will give them the benefit of the doubt for attempts at! innovation -- even if they fail."


Wednesday, March 26, 2014

EU-US Summit: Transatlantic Trade, Russia Sanctions Top Agenda

NEW YORK (TheStreet) -- Reducing Europe's dependence on Russian gas is one of the aims of a free-trade accord discussed at today's EU-US summit in Brussels, President Barack Obama's first visit to the EU capital.

He met with European Commission President Jose Manuel Barroso and EU President Herman Van Rompuy to discuss ways to strengthen transatlantic ties - economically, politically, and even militarily - as tensions remain high over Russia's annexation of Crimea.

"Events in Ukraine and elsewhere go to show that there are many unsettling uncertainties, and that's why the solid certainty of the transatlantic relationship is so crucial," Van Rompuy told journalists after the summit, which lasted just over an hour. "It is the bedrock to face these challenges, a bond of friendship tested by history, and that bond is shock-proof. Cooperation among our countries is unrivaled."

President Obama, who attended the summit after paying tribute to American World War I veterans in Flanders, north of Brussels, underscored that Europe and the 28-nation EU is the "cornerstone of America's engagement around the globe." "We are more secure and we are more prosperous, the world is safer, and more just," he said, "when Europe and America stand as one." The two sides recently launched talks on a free-trade treaty the EU says can boost its economy by 119 billion Euros ($164.2 billion) a year and that of the United States by 95 billion Euros a year. Besides slashing tariffs for all sectors, the aim is to tackle barriers at the customs border -- like differences in technical regulations, standards and approval procedures - to make it easier for companies big and small to export in either direction. Currently, when a car is approved as safe in the EU, it still has to go through a new approval procedure in the U.S. under similar safety standards. A free trade pact is expected to boost EU car exports to Europe by as much as 149%, boosted by the already strong two-way trade in parts and components. That could give an added boost to Germany's Volkswagen, Mercedes-Benz and BMW, already among the top-selling foreign brands in the U.S. As for other industrial sectors, the EU predicts a 12% rise in metal exports to the U.S. post-treaty, 9% in processed foods and in chemicals, 6% in other manufactured goods and 6% in transportation equipment unrelated to cars. On Wednesday, both sides gave reassurances that they won't push for a pact at the price of sacrificing environmental standards or consumer protections. "I have fought my entire political career and as president to strengthen consumer protections," Obama said. "I have no intention of signing legislation that would weaken those protections." Nor does the Commission's negotiating mandate on behalf of the EU's 28 member states allow for any kind of weakening of standards, said Commission President Barroso. Freer trade is also seen as a way to reduce Europe's dependence on natural gas from Russia, all the more urgent in the wake of the Ukraine crisis. Obama said freer trade should make it easier for the U.S. to export liquefied natural gas to Europe, "something that's obviously relevant in today's geopolitical climate." Already, the U.S. has authorized the export of as much natural gas as Europe uses every day, he said. He also urged Europe to look for other sources of energy, cautioning that, "just as there's no easy, free simple way to defend ourselves, there's no perfect, free, ideal, cheap energy sources." At the same time, the EU and the US to stand shoulder to shoulder against Russia's actions in Ukraine, and waved the threat of additional sanctions if the situation escalates. "If Russia continues on its current course," Obama said, "the isolation will deepen. Sanctions will increase and there will be growing consequences for the Russian economy.....This reflects the enduring commitment to the goal that has brought Europe and the United States together for decades - a Europe that is whole and free and at peace." EU President Van Rompuy emphasized that sanctions should not be an end in itself, underscoring the need to stabilize the situation politically, economically and financially, "because that is the best answer." President Obama had a packed 24 hours in Brussels, meeting briefly with NATO Secretary-General Anders Fogh Rasmussen and ending the day with an evening speech to students in central Brussels before jetting to Rome to meet with Pope Francis.

-- Written by Renee Cordes in Brussels.

Tuesday, March 25, 2014

Wolff: GM's Barra shames voiceless CEOs

The CEO is an equivocal figure in American life. On the one hand, the job is among the most highly paid and most central social and economic leadership roles in the nation—the bigger the company you run, the more power and influence you have. On the other hand, almost all CEOs prefer to keep their heads down, to be inside players, to protect themselves. To be public is to be exposed.

It was puzzling, then, if not downright ill advised, for GM's CEO, Mary Barra to last week personally lay claim to the biggest crisis at her company since the financial crisis.

"She's owning it," The New York Times quoted a prominent public relations executive saying. "She will not be able to distance herself from it. It's now hers," said the P.R. man, Daniel G. Hill, in what sounded a bit like a threat.

"It" is the recall of 1.6 million GM cars with faulty ignition switches responsible for the deaths of 12 people—a mechanical flaw that GM knew about for a decade before issuing the massive recall.

Her "owning it" strategy, the Times said, will be "severely tested" as the government presses the company for accountability and as civil law suits unfold. Congress, regulators and the Justice Department are lining up.

The obvious point is that Barra could have personally sidestepped this. She's only been the CEO for two months—it didn't happen on her watch. And, anyway, CEOs assign responsibility, they don't assume it.

Indeed, her response seemed so out of the usual playbook that it might reasonably seem like she had something else up her sleeve. She wasn't just apologizing and accepting accountability, she was announcing herself.

MORE: GM says first sign of switch problem came in 2001

Then again, she's a woman. Arguably, she is part of a new fashion of women running major companies who are, suspiciously, media-willing and comfortable. Yahoo now exists as much as an expression of its CEO, Marissa Mayer, as it does as an expression of forward thinking technology—in a sense, sh! e's single-handedly keeping it relevant. Sheryl Sandberg, Facebook's front man executive, has built a cottage industry for herself as a public person, while the men in the company huddle in secret.

Best High Tech Companies To Buy For 2014

But these are tech companies, so outside the usual.

Barra is running a car company. General Motors. That symbol of deeply entrenched and conservative American corporate and economic life. If GM's CEO is not acting like a CEO is supposed to act, then what?

Barra was not just positioning the company to weather a bad PR situation. She was going from facelessness to full-frontal presence, from the highly controlled environments favored, almost fetishistically, by most CEOs, to an unprotected public role.

Once you go public like this, it's hard to put the toothpaste back in the tube. You're out there now, transparently, or you're in retreat. Once a CEO has spoken, has shown him or herself capable of public utterance, nobody really wants to hear from anyone else.

MORE: Other GM cars have recalled Cobalt steering

Much of the commentary about Barra's singular owning up identified her with 1980s Chrysler chief Lee Iacocca. In fact, other than running car companies, there is nothing much that would seem to link Barra with Iacocca.

Iacocca was pitchman, huckster and showboat. Barra, so far, is not clearly any of those things. Or, if so, a much gentler, and vastly more astute version.

But part of the point about returning to Iacocca is that, other than tech geniuses and billionaires, there has not really been a clear CEO model since him. Iacocca, along with GE's Jack Welch, Amex's Jim Robinson and a memorable list of other hams and egomaniacs, helped create, for better or worse, the '80s and '90s cult of the CEO: outsize men (always men) whose companies were their personal expression.

I can't think of a contemporary conventional-c! ompany CE! O who would not now wince or even recoil at that management style. This is partly a reflection of the bad odor of American business—any public outing threatens to confront a CEO with issues over even his grandiose pay grade. And it is partly a reflection of a hostile media. Basic survival instincts dictate that a CEO play a circumspect, cautious and internal role. This, however, has meant that the faceless managers and accountants now running the show have left most companies—and arguably American business itself—without voice, ideas or presence.

MORE: GM CEO to testify in Congress April 1 on recall

Curiously, Barra is now no longer a faceless manager, but she seems far from an egomaniac. She is out front, though. She is clearly willing to be General Motors. She's personifying what the company stands for—owning it. Barra may, in one day of effort, have become the most prominent major CEO in industrial America.

This invariably raises complicated and chilling issues for other CEOs (all of them obsessed with the moves, styles and methods of their fellow CEOs). Once a public role is defined and demonstrated, it becomes obvious that a company's leadership ought to be able and eager to say what a company is about. What else is there?

Hence, suddenly, with Mary Barra so dramatically owning up, the rest of American C-suites seem not just petrified and hunkered down but wholly unable to adequately express themselves.

Monday, March 24, 2014

Starbucks serving alcohol at more locations

Don't be surprised if you soon get carded at your neighborhood Starbucks.

Like others in the ultra-competitive restaurant world, the coffee giant plans to expand the number of domestic locations that sell alcoholic beverages.

What began with a single Starbucks location in Seattle selling beer and wine in 2010, has slowly but methodically evolved to 26 locations. That's about to go into hyper-drive. Within the next several years, the alcoholic beverage platform will expand to thousands of locations, spokeswoman Lisa Passe says.

"The concept is a natural progression for Starbucks as we seek to create a new occasion for customers to gather, relax and connect with each other in the evenings," Passe says.

Starbucks once again finds itself at the leading edge of an industry trend on the grow. Not only are sales of alcoholic beverages lucrative, but they attract night-time customers, when business typically slows down. The risk is turning off customers who don't want to be part of that environment. The chain has seen little of that blow-back in its slow expansion of beer and wine, which will reach 40 locations by the end of this year.

Hot Energy Stocks To Buy For 2014

Some unlikely restaurants have increasingly embraced sales of alcoholic beverages in recent years. Applebee's has heavily marketed its alcoholic beverage sales. Red Robin earned some recent social media buzz when it began to roll out wine shakes — a few years after rolling out beer shakes. Burger King gave it a go, when it began selling beer and burgers four years ago at its new concept, the Whopper Bar in Miami Beach's tourist-heavy South Beach. And three years ago, Sonic began to sell beer at a couple of its Florida locations.

Among other things, wine and beer sales can substantially boost the average ticket at Starbucks. At Wednesday's annual shareholders meeting, CEO Howard Schultz noted that the typical S! tarbucks customer spends about $5 per visit. A glass of beer or wine can instantly double that figure. "We are in the early stages of our growth and development," Schultz said. "If we're a 20-chapter book, we are only in chapter four or five."

One of those chapters could be the careful evolution from coffee to alcohol. There are no plans for alcoholic beverages beyond wine and beer, Passe says. Nor are there plans to expand the program outside the USA.

She says the menus at these locations typically offer shareable, warm small plates and desserts. The same stores typically sell artisan flatbreads, truffle mac n' cheese, bacon-wrapped dates, salted caramel and cheesecake brownies.

Even then, coffee rules. "In the true spirit of a traditional coffeehouse, while some stores may serve wine and beer," Passe says, "coffee will remain the focus of the experience."

Sunday, March 23, 2014

Why the Fed has no ammo left

The Federal Reserve gets a lot of credit for what passes as an economic recovery. Whether it deserves that credit, going forward the Fed has very little power to influence events because it is essentially out of ammo to further ease. The economy, meanwhile, is still lackluster, despite the central bank's unjustified optimism.

The Fed cast a warm and fuzzy glow in January, when it predicted a pickup in economic growth, which it cited as its rationale for tapering its bond buying campaign, called quantitative easing (QE). And if that acceleration doesn't happen in the near future?

Don't worry: Wall Street will just shift its predictions for a growth resurgence to the second half of the year, as it's done every year since about 2005 -- if memory serves correctly. At this time of year, the Street always says that things will get better in the second half.

The revision of fourth-quarter 2013 gross domestic product growth of 2.8% is not enough of a reason to reverse the Fed's QE policy, which seems to have less and less effect on the real economy, according to the central bank's own research. The Fed says it will gradually taper its monthly bond buying, most likely ending it altogether late in the year. But the Fed's new chief,Janet Yellen, adds that it reserves the right to change course and increase the purchases if the economy dips.

If the current first quarter does end up with say, 1.5% GDP growth, the bad weather in much of the nation will be a factor. But the weather effect is still amorphous enough not to reverse course. Once winter fades, there will inevitably be a rebound effect, so the bank may have to wait until the third quarter before it feels comfortable saying anything about the true core rate of growth (although it probably will cut its 2014 forecast by the June meeting).

Keep in mind that the only easing tools the Fed has left are forward guidance – its practice, through issuing forecasts of its policy intentions, of influencing market behavior – and more QE. ! It can't run about ramping up money printing for every bump in the road. Its bond purchases succeeded in raising asset prices by progressively upping the ante each time; that option isn't available anymore, not when the price tag is the Fed's bloated balance sheet already on its way to $5 trillion. Also, 2014 is a mid-term election year, and I suspect that the Fed governors would really like to be out of the program entirely come November.

Finally, as dovish as Yellen and the others may want to be, there are a couple of realities confronting the bank. One is the lack of ammunition for any crisis that might pop up before the current QE program is back to zero again. QE is partly a psychological effect, and backing out of tapering it in mid-stream is likely to induce considerable anxiety after the initial euphoria wears off.

Top 5 Japanese Stocks For 2014

The other is the nature of the Fed's charter. Quantitative easing was predicated from the beginning on improving employment, a goal handed to the bank in the 1970s by the Humphrey-Hawkins Act. The unemployment rate, now 6.6%, is unlikely to rise anytime soon, given that unemployment is a lagging indicator. So far as the business cycle goes, it is one of the last parts to decline. A resumption of QE after a weak GDP report and a Fed prediction that unemployment might worsen would be politically lethal - the central bank is only as independent as Congress says it is.

The economy hasn't shown any signs whatsoever of accelerating to a sustained 3% growth rate. The recovery from the Great Recession has been choppy, with one quarter's surge followed by a weaker performance. Fourth-quarter 2012 growth slipped to a mere 0.1%, for example. Temporary growth surges sometimes occur, due to sporadic influences like the inventory-restocking episode from last year, when this sudden and unexpected increase helped propel the third-quarter gain to 4.1%.

I couldn! 't believ! e my ears on Thursday when I saw a fellow on CNBC say with a straight face "well, the economy really is getting better this year." The economy is only getting better on the same basis it's gotten better the last five years - somewhere over the rainbow.

The current stock market rebound is getting stretched: The Standard & Poor's 500 has nearly reclaimed its January peak, while the Nasdaq is making new post-2000 highs. All of that in spite of some pretty weak data recently, such as the housing sector's downbeat results. The National Association of Realtors says January existing home sales slumped 5.1%, which it ascribed to poor weather, and rising home prices and mortgage rates.

That said, equities could still squeak out mild gains ahead, after a breather here and there. I've talked about a first-quarter top for stocks since the beginning of the year, and my prediction is still intact. But it still appears to me to be a top to sell, not to buy.

MORE: Jim Blankenship on unequal spousal benefits

MORE: Adam Glassberg on 8 keys to a workable budget

MORE: Manisha Thakor on talking money with your honey

M. Kevin Flynn, CFA, is president of Avalon Asset Management Co. in Lexington, Mass., and is a member of the AdviceIQ Financial Advisors Network, which is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY. Follow AdviceIQ on Twitter at @adviceiq.


Saturday, March 22, 2014

Wal-Mart's new tool gives competitors prices

NEW YORK (AP) — The "Every Day Low Price" king is trying to shake up the world of pricing once again.

Wal-Mart told The Associated Press that it has rolled out an online tool that allows shoppers to compare its prices on 80,000 food and household products to those of its competitors. The world's largest retailer began offering the feature that's called "Savings Catcher" on its website late last month in seven big markets that include Dallas, San Diego and Atlanta.

The move by Wal-Mart, which has a long history of undercutting competitors, could change the way people shop and how other retailers price their merchandise. After all, Americans already increasingly are searching for the lowest prices on their tablets and smartphones while in checkout aisles.

Shoppers do this so often that big retailers that include behemoths like Target and Best Buy have started offering to match the lower prices of rivals — but only if shoppers do the research on their own. The idea behind Wal-Mart's online feature, on the other hand, is to do the legwork for customers.

The tool isn't revolutionary. For instance, Citibank launched a program two years ago that sends Citi credit card customers a check for the difference if it finds a lower price from an online retailer. But Wal-Mart is the first traditional retailer to offer such a program, and if it's successful, others may follow.

Duncan MacNaughton, chief merchandising and marketing officer for Wal-Mart Store's U.S. discount division told The Associated Press in an exclusive interview that shoppers are looking for "technological answers to saving them money and time."

Wal-Mart, which declined to comment on when the program would be rolled out nationwide, said it's hoping the online tool will build more confidence among Wal-Mart shoppers that it has the best price whenever they shop in stores.

The company built its business on offering the lowest prices on staples such as milk, bread and laundry detergent. But Wal-Mart's "every d! ay low price" model is under attack from online king Amazon and other competitors that sometimes offer items cheaper. On top of that, the retailer's primarily lower-income customers continue to cut back on spending during the economic recovery.

As a result, Wal-Mart's U.S. discount division recorded its fourth consecutive quarter of declines in revenue at stores opened at least a year, a critical yardstick for measuring a retailer's health. The discounter also has seen a decline in the number of shoppers going to its stores.

Wal-Mart has had a price matching strategy for several years. In 2011, it simplified the policy by making sure workers have the advertised prices of competitors on hand at the register, eliminating the need for shoppers to bring in an ad from a rival store.

Wal-Mart said the idea for Savings Catcher was born last year during a focus group. The idea instantly resonated with the group, the retailer said, and by last summer, Wal-Mart was testing it in four markets on an invitation-only basis. In late February, the company began rolling it out to the seven markets that also include Charlotte, N.C., Huntsville, Ala., Minneapolis, and Lexington, Ky.

Here's how the tool works: A customer has to set up an account on Wal-Mart.com, then logs onto the Savings Catcher page on www.walmart.com/ and type in the number on their receipt. Shoppers need to register the number within seven days of purchase. Savings Catcher compares prices of every item on the receipt to a database of advertised prices of competitors. The database is provided by an undisclosed third party that analyzes retail ads.

The prices at Wal-Mart stores are matched to competitive stores based on geographic location, but not online retailers. For example, in Atlanta, Wal-Mart compares prices to nearly 20 rivals, including Aldi, CVS, Food Lion, Target and Dollar General. The tool doesn't include purchases on store label brands or those made online. The tool also doesn't apply to general merchandise lik! e clothin! g or electronic gadgets, but does include groceries and things like detergent.

The savings are issued on a Wal-Mart online gift card and the customers can accumulate savings or use the credit immediately. Shoppers can use the credit in stores or online by printing out the gift card receipt.

Wal-Mart's MacNaughton said preliminary data shows that in the markets that have the Savings Catcher, shoppers are putting more items in their basket and the checkout lines are faster because people don't feel like they have to pull out their smartphones or circular ads to check prices.

Anne Jurchak was part of Wal-Mart's focus group. She said she's been getting back $5 to $7 on her weekly trips to Wal-Mart in which she typically spends $200 to $250. Jurchak has used those savings to buy holiday stocking stuffers and a case for her e-reader.

As a part-time marriage counselor and mother of two sons, Jurchak, 41, a said she's never had time to take advantage of price matching.

"They're doing the work for me," said Jurchak, who lives in Belmont, N.C. "The only thing they're not doing is putting the groceries away."

Follow Anne D'Innocenzio at —http://www.Twitter.com/adinnocenzio

Friday, March 21, 2014

Bank Bets: New York to Palo Alto

Top 5 Dividend Stocks For 2014

Doug Hughes, explains the attraction of smaller, regional banking stocks; here, the editor of Bank Newsletter, also highlights two current favorites in this niche market.

Steve Halpern: Joining us today is bank sector expert, Doug Hughes. How are you doing today, Doug?

Doug Hughes: Good, how are you?

Steve Halpern: Very good. In your Bank Newsletter, you specialize in smaller regional banks. Could you briefly explain for our listeners the attraction of these smaller firms relative to the larger national financial institutions?

Doug Hughes: The main attractions are, usually, you can speak to management and get to know them on a personal basis, and/or they have a valuation that's just much simpler and easier to understand, and usually they're at a small niche market where they can write much better profits than the bigger banks if they're run correctly.

Steve Halpern: Now, are these also areas where you're looking at these banks and other analysts may not be following them closely?

Doug Hughes: Yeah, a lot of the smaller or mid-sized regionals are trading, maybe 10,000, maybe 20,000 shares a day and that's probably not enough shares or volume for the bigger mutual funds—hedge funds—to get involved in these situations.

Steve Halpern: Okay, today we're going to walk through two specific investment ideas that you find attractive in the banking sector. The first is Chemung Financial (CHMG), a New York-based operation that happens to be one of the oldest banks in the country. Could you tell us a little more about that?

Doug Hughes: Correct. It was established in 1833, if you can believe it. It's just an upstate New York bank that's probably doing quite a bit of expansion.

They've just picked up a bunch of branches from Bank of America, in summary, the same markets, decent growth college towns, and they've expanded to Albany area of New York where there's definitely some better growth and they seem to be growing their loans, finally, at a decent clip, and management owns 25% of the stock.

The hidden asset on this one is they own almost a $2 billion fund that they actually manage at their bank. It's bigger than the size of their bank in assets, so there's some definitely some value there.

It's trading just $2 over book value, pays a 3.5% cash dividend, and, if it was to sell out, which is one of the main reasons to own these community banks, its worth, at least, double the current trading range.

Steve Halpern: So, when you look at a bank like this that could possibly be a buyout, I assume you like the bank—if it remained as an independent, you would still like the operations?

Doug Hughes: Of course. Always. This bank has earning power of $5 a share, if it was run correctly. Currently it's earning under $3 a share, and/or if management is gone, the top 10 guys pay themselves over $2.5 million, right there is another 70 cents in earnings per share.

So there's many ways to value this company, but I always go by earnings. That's the number one thing, if there is no takeout, and $5 times a fee of, say $12, would give you the $60 buyout price, which would be even low.

Steve Halpern: Now, you also like the outlook for a company called AVIDBANK Holdings (AVBH), which you notice is a fast-growing bank in an area that's best known for its technology companies. Could you share your thoughts on AvidBank?

Doug Hughes: Sure, also, this one is a completely, basically, opposite of the slower growth Chemung areas. This is in Palo Alto, California, the hottest part of the country, where Facebook is headquartered. Tons of new technology companies, old technology companies, everybody is in this market.

They do all kinds of commercial lending, so all different types of offers. And the one thing that you have to be careful of here is, they're not having any bad loans, this bank has none. It's run by very smart management. Management owns 25%, also, of the stock here.

They also did a secondary back about nine months ago, the management bought 25% of that, institutions bought the rest. It was like a private placement to raise capital because they're growing so fast. This bank, in this type of market, is worth at least two times book.

Currently, it's trading about one times book, maybe a buck over that, and has earnings power here of $2.50 a share next year, once it gets running on all cylinders, which, again, gives it a buyout price, honestly, over $25, and it's currently trading at only $11.

Steve Halpern: Well, we appreciate you taking the time today. Thank you so much for joining us.

Doug Hughes: You're welcome. Have a nice day.

Subscribe to Bank Newsletter here...

Hot Medical Stocks To Own For 2014

Hot Medical Stocks To Own For 2014: ZELTIQ Aesthetics Inc (ZLTQ)

ZELTIQ Aesthetics, Inc. (ZELTIQ), incorporated on March 22, 2005, is a medical technology company. The Company is focused on developing and commercializing products utilizing its controlled-cooling technology platform. Its commercial product is the CoolSculpting System that reduces stubborn fat bulges. The Company generates revenues from capital sales of its CoolSculpting System and from procedure fees its physician customers pay for each CoolSculpting procedure they perform. As of March 31, 2011, it had an installed base of 346 and 475 CoolSculpting Systems worldwide and over 88,000 CoolSculpting procedures had been sold to its physician customers. The Company markets CoolSculpting to the dermatologists, plastic surgeons, and aesthetic specialists. As of March 31, 2011, ZELTIQ's North American direct sales force consisted of 23 professionals, and over 88,000 CoolSculpting procedures were sold to ZELTIQ's physician customers.

CoolSculpting System

ZELTIQ generates revenues from capital sales of its CoolSculpting System and from procedure fees its physician customers pay for each CoolSculpting procedure they perform. Capital sales of ZELTIQ's CoolSculpting System include the CoolSculpting control unit and its CoolSculpting vacuum applicators. ZELTIQ generates procedure fees through sales of CoolSculpting procedure packs, which include its consumable gelpads and liners and a disposable computer cartridge that it markets as the CoolCard. The CoolCard contains enabling software that permits its physician customer to perform a fixed number of CoolSculpting procedures.

The CoolSculpting control unit is the base of the CoolSculpting System. ZELTIQ's CoolSculpting control unit also contains software that tracks and collects data about each procedure performed and any error messages that may be generated duri! ng the procedure. CoolSculpting System includes three CoolSculpting vacuum applicators. ZELTIQ's CoolSculpting procedure packs facilitate the pay-per-procedu! re feature of its CoolSculpting System. Its CoolSculpting procedure packs include CoolCard and its consumable gelpads and liners.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    ZELTIQ Aesthetics (NASDAQ: ZLTQ) was also up, gaining 6.92 percent to $18.76. Stifel Nicolaus initiated coverage on the stock with a Buy rating and a $28.00 price target.

  • [By Jake L'Ecuyer]

    ZELTIQ Aesthetics (NASDAQ: ZLTQ) was also up, gaining 6.44 percent to $18.68. Stifel Nicolaus initiated coverage on the stock with a Buy rating and a $28.00 price target.

  • source from Top Stocks Blog:http://www.topstocksblog.com/hot-medical-stocks-to-own-for-2014.html

Thursday, March 20, 2014

Top 10 Low Price Companies To Watch For 2014

Top 10 Low Price Companies To Watch For 2014: Manitex International Inc.(MNTX)

Manitex International, Inc. provides engineered lifting solutions. The company operates through two segments, Lifting Equipment and Equipment Distribution. The Lifting Equipment segment designs, manufactures, and distributes boom trucks and crane products that are primarily used for industrial projects and energy exploration, as well as for infrastructure development, including, roads, bridges, and commercial construction; and specialized rough terrain cranes and material handling products for the construction, municipality, and railroad industries. This segment also provides rough terrain forklifts for use in commercial and military applications; special mission oriented vehicles; and other specialized carriers, heavy material handling transporters, and steel mill equipment, as well as offers specialized custom trailers and hauling systems used for transporting heavy equipment. The Equipment Distribution segment distributes rough terrain and truck cranes, material handler s, boom trucks, and sky cranes for infrastructure development and commercial construction; supplies repair parts for various medium to heavy duty construction equipment; markets used lifting and construction equipment; and offers repair services. This segment sells its products to end users, including the rental market. Manitex International sells its products primarily in the United States, Canada, Algeria, the United Arab Emirates, Brazil, Italy, Korea, Mexico, China, Russia, Spain, Turkey, Puerto Rico, the Netherlands, Indonesia, and Chile. The company was formerly known as Veri-Tek International, Corp. and changed its name to Manitex International, Inc. in May 2008. Manitex International was founded in 1993 and is based in Bridgeview, Illinois.

Advisors' Opinion:
  • [By James Brumley]

    Value fans also will love XRX! 217;s forward-looking P/E of roughly 10.

    Manitex International (MNTX)

    12/2 Price: $13.28

    There might be nothing special about an obscure crane manufacturer at first glance, but a closer inspection of Manitex International (MNTX) reveals this company is driving some serious sales and earnings growth now that it has found its niche. Profits should be up 33% next year.

  • [By Zacks Investment Research]

    1. Manitex International, Inc. (MNTX)

    Manitex manufactures lifting solutions including cranes, reach stackers and container handling equipment, rough terrain forklifts, and indoor electric forklifts. Headquartered in Illinois, it supplies crane parts to customers throughout the world.

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-10-low-price-companies-to-watch-for-2014.html

Tuesday, March 18, 2014

Ask Matt: Don't rush in on individual stocks

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: What's the most I could have lost in stocks the past three years?

A: Investors like to think they can't do all that much damage. Many investors are blinded by the fact that the market tends to rise. So even if they choose poorly, how bad can the losses really be?

But that's not really the case.

Investors who don't do their research, pick stocks about to crash or are just plain unlucky can cause tremendous damage to their portfolios. Bad stock picking doesn't just hurt your returns, but has the potential of destroying your portfolio. Investors who picked the worst stock in the current Standard & Poor's 500 in 2011, 2012 and 2013 would have suffered a 93% loss over the three years. That means an initial investment of $10,000 in 2011 would be worth a mere $651 at the end of three years. That's a loss few investors can ever recover from.

It's not as hard as it seems. Investors chasing alternative energy and solar during the craze of 2011 might have jumped into First Solar. Those shares, though, fell 74.1% in 2011. Hoping to score from the mobile gadget craze, these investors might have seen Best Buy as a winner. But shares of the retailer fell 49.3% in 2012. And then investors hoping for a commodity bounce, who jumped into Newmont Mining, lost 50.4%.

These numbers are a big reminder to investors that trying to pick individual stocks is risky and the losses can be enormous when you're wrong. Don't think the market's general upward trend will bail you out.

TRACK YOUR STOCKS: Get real-time quotes with our free Portfolio Tracker

Follow Matt Krantz on Twitter: @mattkrantz.

Sunday, March 16, 2014

Top 5 Low Price Stocks To Buy For 2014

Top 5 Low Price Stocks To Buy For 2014: ReachLocal Inc.(RLOC)

ReachLocal, Inc. provides a suite of online marketing and reporting solutions to small and medium-sized businesses (SMBs) primarily in the United States, Canada, Australia, the United Kingdom, India, the Netherlands, Germany, and Japan. The company?s products include ReachSearch, a search engine marketing product; ReachDisplay, a display advertising and remarketing product; ReachCast, a solution that builds and optimizes Web presence for the purpose of driving online search discovery, powering reputation management, and managing social media marketing; and remarketing and retargeting products. It also provides a suite of digital marketing solutions comprising TotalTrack, TotalLiveChat, TotalVideoNow, and TotalBannerNow to address specific marketing needs, such as lead optimization, online analytics, and digital creative solutions. The company serves clients in various industry verticals, such as home repair and improvement, automobile sales and repair, medical and health s ervices, legal services, and retail and personal services. It delivers its solutions through a combination of its proprietary ReachLocal Platform and direct sales force of Internet marketing consultants, as well as through select third-party agencies and resellers. ReachLocal, Inc. was founded in 2003 and is headquartered in Woodland Hills, California.

Advisors' Opinion:
  • [By Jeremy Bowman]

    What: Shares of ReachLocal (NASDAQ: RLOC  ) were moving the wrong way today, falling as much as 19% after providing disappointing guidance in its quarterly report.

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-5-low-price-stocks-to-buy-for-2014.html

Saturday, March 15, 2014

Top 5 High Tech Stocks To Buy For 2014

Top 5 High Tech Stocks To Buy For 2014: Cedar Shopping Centers Inc (CDR)

Cedar Shopping Centers, Inc., real estate investment trust, engages in the ownership, operation, development and redevelopment of supermarket-anchored community shopping centers and drug store-anchored convenience centers in the United States. As of December 31, 2007, it owned 118 properties, aggregating approximately 12.0 million square feet of gross leasable area primarily in Pennsylvania, Massachusetts, Virginia, Ohio, Connecticut, New Jersey, Maryland, Michigan, and New York. Cedar Shopping has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 1984 and is based in Port Washington, New York.

Advisors' Opinion:
  • [By Bill Smith]

    Valuation
    Lastly, because of the negative perception the entire industry has received, prices in this sector have been absolutely pummeled. ESI now trades at the lower end of all of its historical valuation bands: P/E, P/B, and P/S.

    Bullish Points
    Guru ownership and avg price: ESI owned by Hussman ($76.15), Weitz ($75.32), and Greenblatt ($73.29)Over 35% of shares are short, potential short squeezeStock buyback plan: ESI reduced outstanding shares by 19% yoy at the end of the 4th quarter. They repurchased 370K shares in 3Q11.The business model is scalable; the incremental cost to educate each additional student is low, leading to high marginsESI acquired Daniel Webster College, giving them a regional accreditation which they can use to broaden their reach in online classes
    Bearish Points
    High costs of education, in general, rightly or wrongly attract government intervention and could squeeze margins over time. Total student debt surpassed credit card bal ances, and sits at $1 Trillion as of ! the end of 2011.Subject to compliance with Dept of Education's 90/10 rules, which states a college can't collect more than 90% of revenue from students participating in federal loan programs.Cohort Default Rate (CDR): for-profit colleges must monitor the federal loan default rates of students who graduate or leave the school. If a school's CDR exceeds 25% for 3 consecutive years, or 40% in any one year, its students won't be eligible for federal financial aid.ESI competes on quality of product which is measured by graduation rates and ability to secure employment. For 2010, 70% of ESI graduates got employment in positions using skills taught in their program of study within 1 year. As of Oct 2011, this rate was 600 bp higher. The average annual salary reported by employed 2011 grads was $32K, compared to $32.4K for 2010 grads.With an improving economy, there's a potential ESI would see declining new student enrollmentsOver 35% of shares a re short
    Summary

    source from Top Stocks Blog:http://www.topstocksblog.com/top-5-high-tech-stocks-to-buy-for-2014.html

Friday, March 14, 2014

Aeropostale’s Results Pitiful; Barters More of the Company for Cash

Aeropostale Inc. (NYSE: ARO) reported fourth-quarter and fiscal year 2013 results after markets closed Thursday afternoon. The teen clothing retailer posted an adjusted diluted earnings per share (EPS) loss of $0.35 on revenues of $670 million. In the same period a year ago, Aeropostale reported EPS of $0.24 on revenues of $797.7 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for an EPS loss of $0.31 and $683.79 million in revenue.

For the full year, Aeropostale reported an EPS loss of $1.13 on revenues of $2.09 billion, compared with EPS of $0.68 on revenues of $2.39 billion in the prior year. The consensus estimates called for an EPS loss of $1.10 on revenues of $2.1 billion.

Same-store sales, including e-commerce sales, fell 15% in the fourth quarter on top of a 6% drop in the fourth quarter a year ago. For the full year same-store sales also fell 15% compared with a 2% drop in 2012.

Aeropostale also announced today that it had signed a commitment letter with private equity firm Sycamore Partners for a strategic partnership and $150 million in senior secured debt facilities. Sycamore receives convertible preferred stock that can be converted to a total of 5% of the company's common stock at an exercise price of $7.25, Wednesday night's closing price. Sycamore also gets two board seats and the right to approve a third.

The company expects to post an EPS loss of $0.70 to $0.75 in the first quarter of 2014, far worse than the $0.17 loss estimated by analysts. The company plans to close 50 Aeropostale stores and two P.S. stores in 2014.

The company's CEO said:

The results we generated in 2013 are not acceptable nor are they a reflection of the progress we believe we have made in transforming our brand. Having evaluated what we set out to do in 2013 and what we learned, we believe our strategy surrounding product, brand projection, process and growth is even more crucial to winning in today’s challenging retail landscape.

Hot Low Price Stocks For 2014

We noted Aeropostale in our recent report on the nine retailers set to close the most stores as the company ranked third in most store closings. Aeropostale may close as many as 175 stores over the next few years. The deal with Sycamore Partners buys the company some time, but not much.

Shares are down nearly 12% in after-hours trading, at $6.45 in a 52-week range of $6.04 to $17.10. Thomson Reuters had a consensus analyst price target of around $8.90 before today's results were announced.

Thursday, March 13, 2014

Top Up And Coming Stocks To Own Right Now

Top Up And Coming Stocks To Own Right Now: Ishares Msci Italy Index Fund (EWI)

iShares MSCI Italy Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index (the Index). The Index seeks to measure the performance of the Italian equity market. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization. Component companies are adjusted for available float and must meet objective criteria for inclusion in the Index. The Index is reviewed quarterly.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund's investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:
  • [By Tom Aspray]

    This is quite a bit better than the 9.2% gain of the iShares MSCI Italy (EWI) or the 8.9% rise in the iShares MSCI Austria (EWO). All three have done significantly better than the Spyder Trust (SPY), which is up 3.6%. The French and German country ETFs have not yet moved above their late 2013 highs.

  • [By Dan Caplinger and Mike Klesta]

    In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about three countries with particularly high unemployment rates. As Dan notes, even though the employment picture in Europe is ugly, one of these three countries has made some progress toward getting unemployment under control. Dan also weighs in with some investment ideas for those seeking to bet on a turnaround in Europe, with thoughts for both ETF investors and those who prefer individual stocks (NYSEMKT: EWI  ) .

  • source from ! Top Stocks Blog:http://www.topstocksblog.com/top-up-and-coming-stocks-to-own-right-now-2.html

Wednesday, March 12, 2014

Is Buffett's Graham Holdings Deal a Glimpse into Berkshire's Future?

Updated from 10:50 a.m. ET to include closing share prices and calculations of Graham Holdings exchange

NEW YORK (TheStreet) -- Warren Buffett may be perfecting a new way for Berkshire Hathaway to exit its large investments. On Wednesday, Berkshire Hathaway (BRK.A) and Graham Holdings (GHC) agreed to a deal where the Warren Buffett-run company will acquire Miami TV station WPLG, cash and Graham Holdings shares in Berkshire Hathaway in exchange for Berkshire's 1.6 million share stake in the former owner of the Washington Post.

Berkshire Hathaway's deal essentially cashes out the investing conglomerate from its long-standing investment in Graham Holdings. But Berkshire won't sell a single share in the deal, even as it forks over about 21% of graham Holdings' stock.

Instead of selling shares on the open market, Berkshire will give its 1.6 million shares back to Graham for a TV station, cash and Berkshire shares that Graham Holdings acquired during a long-relationship between Buffett and the newspaper's founding family.

The Miami TV station will be valued at $364 million, and Graham Holdings will fork over $327.7 million and $400.3 million worth of Berkshire shares, as part of the deal, according to an 8-K filing with the Securities and Exchange Commission. Berkshire Hathaway will retain between 91,490 and 111,716 shares in Graham Holdings depending on the trading prices of both firms as the exchange closes.

For Berkshire Hathaway, the deal is more of an estate sale than anything. Buffett held onto a large chunk of Graham Holdings shares for decades amid the chronic decline in the newspaper industry, partly out of a relationship he had with the Graham family and particularly Katherine Graham. "I can afford to be sentimental," Buffett said of Berkshire's investment in Graham Holdings.

That sentiment, however, may have been lost when Graham Holdings sold The Washington Post to Amazon (AMZN) founder Jeff Bezos in 2013. What remains of Graham Holdings, formerly known as The Washington Post Company, is a conglomeration of educational businesses and broadcast TV channels.

If history is any guide, there may be tax savings in Buffett's share swap deal with Graham Holdings, over a sale of the company's stock.

For Graham Holdings, Monday's deal mostly amounts to a large stock buyback. Instead of Berkshire selling those shares on the open market, Graham will transfer assets such as WPLG, cash and Berkshire shares to Buffett.

Essentially Berkshire and Graham Holdings agreed to a swap, and not a sale.

Two things stand out. First, Buffett has now officially exited Berkshire's biggest newspaper investment, a stake often criticized by outside observers. There are few stock market "Oracles" still invested heavily in newspapers.

More importantly, however, Buffett's swap deal may be indicative of how Berkshire Hathaway could increasingly look to exit large investments.

Because Berkshire has so many large investments with unrealized gains, both Buffett and the company he invests in are in a slight bind if Berkshire wants to exit an investment. Large sellers of shares sometimes cause a company's stock to fall. There are also tax implications for Buffett.

Exchanges of company assets appear be an alternative way for Berkshire to exit its investments.

In December, Berkshire Hathaway exited its stake in Phillips 66 (PSX) by agreeing to a deal with the company for its Phillips Specialty Products unit, which optimizes the flow of oil and gas through pipelines. The deal may have underscored Buffett's willingness to invest in the logistics surrounding a surge in onshore oil and gas transport across the U.S.

It also amounted to a cash-rich spin-off for Phillips 66 and Berkshire Hathaway, according to Robert Willens, a tax expert.

Willens noted that the Phillips 66 deal was similar to Berkshire's divestment of White Mountains Insurance Group (WTM). In 2008, Berkshire divested an over 16% stake in White Mounts directly to the company in exchange for $751 million in cash plus two units of the Hamilton, Bermuda-based insurer.

Berkshire's Graham deal is similar to its White Mountain and Phillips 66 stake sales.

Whether Buffett's deal-making ways extend to Berkshire's larger investments like Wells Fargo (WFC), American Express (AXP), Coca-Cola (KO) and IBM (IBM) could be a story to watch in coming years.

"I am sure this is a mutually beneficial transaction for both companies," Buffett said of his Graham Holdings deal on Monday. "While this transaction will greatly reduce our position in Graham Holdings, our admiration for the company and its management is undiminished."

"Warren Buffett's 40-year association with our company has been extremely good for our shareholders. Naturally, the deal that we have put together is one that will be good for both companies," said Donald E. Graham, chairman and chief executive officer of Graham Holdings Company, said on Wednesday.

Graham Holdings gained over 3% in Wednesday trading, closing at $730.79. Berkshire Hathaway shares closed up less than 0.5% at $187,750.  -- Written by Antoine Gara

Stock quotes in this article: BRK.B, GHC 

Tuesday, March 11, 2014

5 Reasons Why Apple Inc. Won't Put Sapphire Screens on iPads

Apple wants to see fewer of these shattered glass covers -- but at what cost?

Apple (NASDAQ: AAPL  ) is building a sapphire screen factory in Arizona. The move could be bad news for Corning (NYSE: GLW  ) , which currently supplies Gorilla Glass for Apple's gadget lineup. If Apple moves wholesale to sapphire screens instead, it'll take the wind out of Gorilla Glass' sails very quickly.

Sapphire is the second-hardest material known to man, just behind diamond. Replacing Corning's specialized Gorilla Glass with sapphire would make the screen unscratchable -- assuming that you don't walk around with your iPhone in a pocket full of diamonds.

But scratch-proof glass isn't everything. Ask Corning's accounting officer Tony Tripeny, who spoke on the matter at a telecom conference this week. Tripeny would like to set the record straight on a few points:

Sapphire is about 10 times more expensive than comparable Gorilla Glass slates.

Sapphire manufacturing processes use 100 times the energy of Gorilla Glass, running at much higher melting temperatures.

The screen formation takes 4,000 times longer.

Sapphire is so hard that forming proper screens out of it requires very expensive machinery.

Oh, and the extreme hardness against scratches doesn't translate into shatter-proof panels -- Tripeny said that Gorilla Glass can take 2.5 times as much pressure as a sapphire screen before cracking.

And then, once you've formed your expensive sapphire slate, this single crystal is prone to low-manufacturing yields. With glass panes, Corning and others have developed tricks of the trade to get usable end products out of slightly flawed slates. That's not possible with sapphire's single-crystal structure.

But it all comes down to cost. In consumer electronics, costs can make or break a product. So, replacing Gorilla Glass in large screens like 10-inch iPads or even 5-inch iPhones doesn't make much sense. If Apple is hell-bent on using Sapphire screens, Tripeny suggests that it has smaller form factors in mind.

Fact checking Corning's claims
All of this checks out against a sapphire-centric conversation I recently had with a materials engineer. In addition, my source says that sapphire slates have to be split just right, or the crystal structure will start playing tricks with both that supreme hardness and with the ability to let light through the screen.

So maybe we shouldn't expect sapphire screens for Apple's entire range of products. It's true that both Mr. Tripeny and my materials specialist have a bit of bias in favor of Gorilla Glass and against sapphire screens, but their talking points make sense from top to bottom.

Given these parameters, Apple might restrict sapphire screens to fairly small products, like perhaps a revamped iPod Nano -- or that elusive iWatch, where scratch resistance might matter more than shatterproofing or low costs.

How to get rich on smartphones -- from a brand new angle
Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

FINRA Backs Off Collecting Personal Data in CARDS Plan

The Financial Industry Regulatory Authority announced Tuesday that it will not collect sensitive personally identifying information from the data the self-regulator is to receive from its new Comprehensive Automated Risk Data System (CARDS).

FINRA stated that after considering the written comments on the CARDS concept proposal and the views expressed discussions with industry participants regarding investor privacy, the regulator “has concluded that the CARDS proposal will not require the submission of information that would identify to FINRA the individual account owner, particularly account name, account address or tax identification number.”

Dale Brown, president and CEO of the Financial Services Institute (FSI), said that while he applauded FINRA’s decision to not collect sensitive data, FSI still has some concerns about the CARDS plan. “Today, FINRA took an important step forward in their CARDS proposal, by announcing they will not collect sensitive personally identifying information from the data they plan to receive,” Brown said. “While we still have concerns with data security, costs and other unintended consequences of the proposal, we applaud FINRA’s response to industry concerns. We will continue to work with them as this proposal is considered.”

In December, FINRA requested comments on the concept of a new Comprehensive Automated Risk Data System. FINRA is taking comments on the CARDS proposal until March 21.

CARDS is a rule-based program that would allow FINRA to collect on a standardized, automated and regular basis, account information, as well as account activity and security identification information that a firm maintains as part of its books and records.

Sunday, March 9, 2014

Is Facebook a Healthy Stock for Your Portfolio?

With shares of Facebook (NASDAQ:FB) trading around $69, is FB 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

Facebook is engaged in building social products in order to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family to discover what is going on in the world around them, and to share and express what matters to them with the people they care about. Developers can use the Facebook platform to build applications and websites that integrate with Facebook to reach its global network of users, building personalized and social products. Advertisers can engage with more than 900 million monthly active users on Facebook — or subsets of its users — based on information they have chosen to share.

Facebook's recent acquisition of WhatsApp is prompting privacy probes throughout the European Union. A top privacy regulator for the EU claims watchdogs want to keep an eye on the mobile messaging service and Facebook. It's this large acquisition that sparked serious interest in WhatsApp from the authorities. Bloomberg News added, "The proposed cash-and-stock acquisition would be the biggest by Facebook, the world's largest social network, and gives WhatsApp roughly the same valuation as Gap Inc. and more than half the market value of microblogging service Twitter (NYSE:TWTR). WhatsApp lets users send messages through its service on mobile devices based on different operating systems including Apple (NASDAQ:AAPL)'s iOS, Google (NASDAQ:GOOG)'s Android, Microsoft Corporation (NASDAQ:MSFT)'s Windows Phone and BlackBerry Ltd (NASDAQ:BBRY)'s software."

T = Technicals on the Stock Chart Are Strong

Facebook stock has been exploding to the upside in recent years. The stock is currently trading near all time highs and looks set to continue. 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, Facebook is trading above its rising key averages which signal neutral to bullish price action in the near-term.

FB

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Facebook options

42.62%

36%

33%

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

Put IV Skew

Call IV Skew

March Options

Flat

Average

April 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 minimal 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 Facebook's stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Facebook look like and more importantly, how did the markets like these numbers?

2013 Q4

2013 Q3

2013 Q2

2013 Q1

Earnings Growth (Y-O-Y)

1,322.38%

108.33%

58.33%

0.00%

Revenue Growth (Y-O-Y)

5.65%

59.75%

53.13%

37.81%

Earnings Reaction

14.10%

2.44%

29.61%

5.61%

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

P = Excellent Relative Performance Versus Peers and Sector

How has Facebook stock done relative to its peers, Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG), LinkedIn (NASDAQ:LNKD), and sector?

Facebook

Microsoft

Google

LinkedIn

Sector

Year-to-Date Return

27.02%

0.24%

8.89%

-2.19%

3.31%

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

Conclusion

Facebook looks to provide a valuable social networking experience to its users, developers, and advertisers. The company's recent acquisition of WhatsApp is prompting privacy probes throughout the European Union. The stock has been exploding to the upside and is currently trading near all time highs. Over the last four quarters, earnings and revenues have been increasing, which has left investors pleased about recent earnings announcements. Relative to its peers and sector, Facebook has been a relative year-to-date performance leader. Look for Facebook to continue to OUTPERFORM.

Saturday, March 8, 2014

Jim Cramer's Top Stock Picks: GTAT CSOD VEEV

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK (TheStreet) -- Here are some of the hot stocks Jim Cramer talked about on Friday's Mad Money on CNBC:

GTAT Chart
GTAT data by YCharts

GT Advanced Technologies (GTAT): Cramer said he'll be watching this stock when it presents at an analyst briefing next week.

Stock quotes in this article: GTAT, CSOD, VEEV 

CSOD ChartCSOD data by YCharts

Cornerstone On Demand (CSOD): Cramer said this cloud-computing company still tells a great story.

Stock quotes in this article: GTAT, CSOD, VEEV 

VEEV Chart
VEEV data by YCharts

Veeva Systems (VEEV): Cramer said he couldn't find anything wrong with this company's last quarter and he'd be a buyer into weakness.

To read a full recap of "Mad Money" on CNBC, click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

Stock quotes in this article: GTAT, CSOD, VEEV  At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.

Friday, March 7, 2014

Top 5 Transportation Stocks To Watch Right Now

Businesses added 139,000 jobs in February, private payroll processor ADP said Wednesday, adding to concerns that the labor market continued to struggle last month amid extreme winter weather.

Economists expected ADP to report 158,000 additional private-sector jobs, according to a consensus forecast. They predict the Labor Department's more closely watched survey, due Friday, will show 150,000 job gains by businesses and federal, state and local governments.

ADP said that small businesses added 59,000 jobs; mid-size ones, 35,000 and large companies, 44,000.

Professional and business services led job gains, with 33,000. Trade, transportation and utilities added 31,000 and construction firms, 14,000. Manufacturers added 1,000 jobs.

"February was another soft month for the job market," said Mark Zandi, chief economist of Moody's Analytics, which helps ADP compile the report. "Bad winter weather, especially in mid-month, weighed on payrolls. Job growth is expected to improve with warmer temperatures."

Top 5 Transportation Stocks To Watch Right Now: YRC Worldwide Inc.(YRCW)

YRC Worldwide Inc., through its subsidiaries, provides various transportation services worldwide. The company?s YRC National Transportation unit offers a range of services for the transportation of industrial, commercial, and retail goods, such as apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2009, it had 11704 owned tractors, 1239 leased tractors, 50083 owned trailers, and 3244 leased trailers. Its YRC Regional Transportation unit?s service portfolio includes regional delivery, which comprises next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, and various specialized offerings; expedited delivery, that comprises day-definite, hour-definite, and time definite capabilities; inter-regional delivery; cross-border delivery; and operation of my.yrcregional.com and NewPenn.com, which are e-commerce Websites offering online resources to manage transportation activity. The company?s YRC Logistics units? service portfolio consists of distribution services that include flow through and pool distribution, dedicated warehousing, and value-added services; global services, which comprise international freight forwarding, customs brokerage, and value-added services; and transportation services, such as truckload brokerage, domestic freight forwarding, and transportation management. Its YRC Truckload unit provides customized truckload services on regional and national level through the use of company and team-based drivers. The company was founded in 1924 and is headquartered in Overland Park, Kansas.

Advisors' Opinion:
  • [By DailyFinance Staff]

    Job creation last month was shockingly weak, but analysts couldn't really explain why –- other than to blame the weather -- which left investors unsure how to react Friday. Many analysts say the numbers are likely to be revised higher next month, and in the end, market reaction was muted. The Dow Jones industrial average (^DJI) lost ground for a third straight day, declining nearly 8 points, but the Standard & Poor's 500 index (^GPSC) added 4, and the Nasdaq composite index (^IXIC) rose 18 points. Target (TGT) lost more than a point after saying the data breach that began on Black Friday was much worse than previously thought. The company now says as many as 70 million customers had personal information stolen. Target also lowered its fourth quarter outlook, partly because sales slumped after the data breach was first revealed. Sears (SHLD) tumbled by around 13.5 percent. It expects a big quarterly loss as sales fell during the holiday shopping season. Several smaller, specialty retailers also fell: Pacific Sunwear (PSUN) slid 16 percent, Five Below (FIVE) fell 7 percent, Shoe Carnival (SCVL) lost 5 percent, and Conn's (CONN) lost 2 percent. But Abercrombie & Fitch (ANF) jumped 12 percent. It raised its earnings forecast as sales were not as bad as expected. Elsewhere, Alcoa (AA) fell about 5.5 percent. It's not quite the economic bellwether it used to be, but the aluminum giant still matters, and its net came in a bit shy of expectations. YRC Worldwide (YRCW) tumbled 13 percent after workers rejected a contract offer. That has raised fears the trucking company could be forced into bankruptcy. On the upside, the weak jobs report could keep mortgage rates from rising, and that boosted housing stocks. KB Homes (KBH) rose 3 percent, William Lyons up 4 percent, and Lennar (LEN) was up 2 percent. And on Thursday we reported that shares of Intercept Pharmaceuticals nearly quadrupled in price on news of a positive clinical study for its liver dr

  • [By Lauren Pollock]

    YRC Worldwide Inc.(YRCW) swung to a third-quarter loss as the trucking company’s results were stung by driver shortages and higher expenses, offsetting higher revenue from the regional transportation segment. Shares slumped, as results for the period missed expectations.

  • [By Jon C. Ogg]

    YRC Worldwide Inc. (NASDAQ: YRCW) remains an entity that is at-risk by our count. The trucking company managed to swing back to a loss on worse than expected earnings, in-part blaming a shortage of drivers and also higher expenses. You would think that lower gasoline prices would be helping matters, but this turnaround just cannot seem to turn around. Shares were down some 20% on Wednesday after earnings, and the drop on Friday was another 6% down to $7.41. The overall drop from Monday’s close of $10.64 was just over 30%. With a wide loss expected in 2013 and another loss expected in 2014, combined with spotty revenue expectations, is it fair to worry about this company’s future?

  • [By Sean Williams]

    Even the trucking companies that have been struggling are showing signs of life. Just last week, Arkansas Best (NASDAQ: ABFS  ) announced a tentative agreement between its ABF Freight Systems subsidiary and the Teamsters union that should dramatically lower costs. Just days later, struggling trucker YRC Worldwide (NASDAQ: YRCW  ) , which also reported its first quarterly profit in six years recently, confirmed that it's offered a preliminary proposal to acquire Arkansas Best. �

Top 5 Transportation Stocks To Watch Right Now: CryoPort Inc (CYRX)

Cryoport, Inc. (CryoPort), incorporated on May 25, 1990, provides frozen shipping logistics solutions to the biotechnology and life science industries. The Company�� solutions are disruptive to old technologies and provide reliable, economic alternatives to existing products and services utilized for frozen shipping in biotechnology and life sciences including stem cells, cell lines, vaccines, diagnostic materials, semen and embryos for in-vitro fertilization, cord blood, bio-pharmaceuticals, infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures.

The Company offer its solutions to companies in the biotechnology and life sciences industries and specific verticals including manufacturers of stem cells and cell lines, diagnostic laboratories, bio-pharmaceuticals, contract research organizations, in-vitro fertilization, cord blood, vaccines, tissue, animal husbandry, and other producers of commodities requiring reliable frozen solutions for logistics problems.

The CryoPort Express System

Cryoport Express Solutions include a cloud-based logistics management software branded as the Cryoportal. The Cryoportal supports the management of the entire shipment process through a single interface which includes initial order input, document preparation, customs clearance, courier management, shipment tracking, issue resolution, and delivery. Cryoport�� total turnkey logistics solutions offer reliability, cost effectiveness, and convenience, while the use of recyclable and reusable components provides green, environmentally friendly solutions. The Cryoportal provides an array of information dashboards and validation documentation for every shipment.

Cryoport Express Solutions include recording and retaining a fully documented chain-of-custody and, at the client�� option, chain-of-condition for every shipment, helping ensure that safety, efficacy, and stability of shipped commodities are maintained. This re! corded and archived information allows its customers to meet the exacting requirements necessary for scientific work and for regulatory purposes. Cryoport Express Solutions can be used by customers, as a turnkey solution, through direct access to the cloud-based Cryoportal, or by contacting Cryoport Client Care for order entry tasks. Cryoport provides 24/7/365 logistics services through its Client Care team and also provides complete training and process management services to support each client�� specific requirements.

The CryoPort Express System

The CryoPort Express System consists of the CryoPort Express Portal, which programmatically manages order entry and all aspects of shipping operations, CryoPort Express Shippers, the CryoPort Express Smart Pak data logger, and CryoPort Express Analytics, which monitors shipment performance metrics and evaluates temperature-monitoring data collected by the data logger during shipment. In addition, the Company provides a containment bag, which is used in connection with the shipment of infectious or dangerous goods using the CryoPort Express Shipper and other accessories used in the shipment of biological and pharmaceutical specimens.

CryoPort Express Portal

The CryoPort Express Portal is used by CryoPort, the Company�� customers and its business partners to automate the entry of orders, prepare customs documentation and to facilitate status and location monitoring of shipped orders while in transit it is used by CryoPort to manage shipping operations. It is also used to support the high level of customer service. The CryoPort Express Portal also serves as the communications nerve center for the management, collection and analysis of Smart Pak data collected from Smart Pak data loggers in the field.

The CryoPort Express Shippers

The Company�� CryoPort Express Shippers are cryogenic dry vapor shippers capable of maintaining cryogenic temperatures of minus 150掳 Celsius or below f! or a peri! od of 10 or more days. A dry cryogenic shipper is a device that uses liquid nitrogen contained inside a vacuum insulated bottle, which serves as a refrigerant to provide stable storage temperatures below minus 150掳 Celsius. It has developed a retention system to ensure that liquid nitrogen stays inside the vacuum container, which allows the shipper to be designated as a dry shipper meeting International Air Transport Association (IATA) requirements. The Company is offering two sizes of dry vapor shippers, the CryoPort Express Standard Shipper with a storage capacity of up to 75 0.2 milliliter vials and the CryoPort Express High Volume Shipper, which was introduced, in January of 2012 with a capacity of up to 500 0.2 milliliter vials.

The CryoPort Express Standard Shipper

The Standard CryoPort Express Shippers are lightweight, re-usable dry vapor liquid nitrogen storage containers. A Standard CryoPort Express Shipper is composed of an aluminum metallic dewar flask, with a well for holding the biological material in the inner chamber.

The CryoPort Express High Volume Shippers

The Cryoport Express High Volume Shipper also uses a dry vapor liquid nitrogen (LN2) technology to maintain below -150掳 C temperatures with a dynamic shipping endurance of 10 days. The CryoPort Express High Volume dry shipper uses a dry vapor liquid nitrogen (LN2) technology to maintain below -150掳 Celsius temperatures. The High Volume dry shipper has a storage capacity of up to 500 0.2 milliliter vials.

The CryoPort Express Smart Pak

Phase II of the Company�� Smart Pak System, which is a self-contained automated data logger capable of recording the internal and external temperatures of samples shipped in its CryoPort Express Shipper is used in every shipment. Phase III of its Smart Pak System consists of developing and rolling out a chip with wireless connectivity to enable its customers to monitor a shipper�� location, specimen temperature and over! all state! of health via its Web portal. The Company is developing the requirements for Phase III.

Cryoport Express Analytics

The Cryoportal is an important information technology element of its business strategy and has been designed to support planned future features to allow for an expansion of its solutions offering. Analytics is a term used by IT professionals to refer to performance benchmarks or Key Performance Indicators (KPI��) that management utilizes to measure performance against desired standards. Examples for analytics tracked through the Cryoportal include time-based metrics for order processing time and on-time deliveries by its shipping partners, as well as profiling shipping lanes to determine average transit times and predicting potential shipping exceptions based on historical metrics.

Biological Material Holders

The Company has developed a containment bag, which is used in connection with the shipment of infectious or dangerous goods using the CryoPort Express Shipper. Up to five vials, watertight primary receptacles are placed onto aluminum holders and up to fifteen holders (75 vials) are placed into an absorbent pouch, which is designed to absorb the entire contents of all the vials in the event of leakage. This pouch containing up to 75 vials is then placed in a watertight secondary packaging Tyvek bag capable of withstanding cryogenic temperatures, and then sealed. This bag is then placed into the well of the cryogenic shipper.

The Company competes with MVE/Chart Industries, Taylor Wharton and Air Liquide, Marathon Products Inc., Kodiak Thermal Technologies, Inc, BioStorage Technologies and BioMatrica, Inc.

Advisors' Opinion:
  • [By CRWE]

    Today, CYRX has shed (-10.00%) down -0.050 at $.450 with�179,695 shares in play thus far (ref. google finance Delayed: 12:35PM EDT October 4, 2013).

    Cryoport, Inc. and OCASA, Inc. have previously entered into a master services agreement to provide global cold chain logistics solutions for life science and biotech commodities requiring cryogenic temperatures. OCASA will have access to Cryoport�� full range of cryogenic business solution capabilities including its proprietary Cryoport Express庐 Shippers and cloud-based logistics management software platform, the CryoportalTM. Cryoport will leverage OCASA�� global logistics network to provide more complete global services to its customers. In conjunction with Cryoport and OCASA providing each other with logistics solutions, the Companies will engage in co-marketing, joint sales activities, and a wide range of customer-driven support requirements to provide comprehensive and seamless solutions to the life sciences and biotech industries

Best Bank Stocks To Invest In 2015: Frontline Ltd (FRO)

Frontline Ltd., incorporated on June 12, 1992, is a shipping company. The Company is engaged primarily in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. The Company operates tankers of two sizes: very large crude carriers (VLCCs), which are between 200,000 and 320,000 deadweight tons, and Suezmax tankers, which are vessels between 120,000 and 170,000 deadweight tons. As of December 31, 2010, its tanker and OBO fleet consisted of 73 vessels. The fleet consists of 44 VLCCs, which are either owned or chartered in, 21 Suezmax tankers, which are either owned or chartered in and eight Suezmax OBOs, which are chartered in. The Company also had five VLCC newbuildings and two Suezmax newbuildings on order and three VLCCs under its commercial management. In February 2010, it purchased the VLCC Front Vista from Ship Finance International Limited (Ship Finance). In January 2011, it sold the VLCC Front Shanghai.

The Company operates through subsidiaries and partnerships located in the Bahamas, Bermuda, the Cayman Islands, India, the Isle of Man, Liberia, Norway, the United Kingdom and Singapore. The Company is also engaged in the charter, purchase and sale of vessels. In April 2010, the Company delivered the single hull Suezmax Front Voyager. During the year ended December 31, 2010, six newbuildings were completed. Four Suezmax vessels were delivered: the Northia, on January 5, 2010; the Naticina, on March 9, 2010; the Front Odin, on May 5, 2010, and the Front Njord on August 12, 2010. Two VLCCs were delivered: the Front Cecilie on June 10 and the Front Signe on August 9, 2010. As of December 31, 2010, the Company's newbuilding program consisted of two Suezmax tankers and five VLCCs.

Advisors' Opinion:
  • [By Tyler Crowe]

    Oil tankers could also see a benefit as well. With potential of the SUMED pipeline being shut down, it would mean that tankers would need to increase traffic by 2 million barrels per day and increase its shipment times as much as LNG tankers.�Norway's�Frontline� (NYSE: FRO  ) , the world's largest oil tanker fleet, has day rates of about $25,000 for its oil carriers, so it's not as much of a win as LNG carriers. Also, higher fuel prices for all shipments will eat into that revenue boost.�

  • [By Dan Caplinger]

    The reason for the disconnect between earnings and stock performance has to do with the changing fundamentals for shipping overall. For years, shipping companies both on the dry-bulk and the tanker side of the industry have suffered from weakness in the global economy after having built huge numbers of new ships during better times. That forced Overseas Shipholding Group to seek bankruptcy protection late last year and has left tanker giant Frontline (NYSE: FRO  ) under considerable financial pressure as it continues to labor under a substantial debt load.

Top 5 Transportation Stocks To Watch Right Now: Pembina Pipeline Corp (PBA)

Pembina Pipeline Corporation (Pembina) is a Calgary-based company, engaged in providing transportation and midstream services. It owns and operates: pipelines that transport conventional and synthetic crude oil and natural gas liquids produced in western Canada; oil sands, heavy oil and diluent pipelines; gas gathering and processing facilities; and, an oil and natural gas liquids infrastructure and logistics business. It has facilities located in western Canada and in natural gas liquids markets in eastern Canada and the United States. Pembina also offers a spectrum of midstream and marketing services. Pembina�� Midstream business is organized into two segments: crude oil and NGL. The crude oil segment represents the Company�� midstream operations. The NGL segment includes two operating systems: Redwater West and Empress East. Pembina's Conventional Pipelines business consists of a pipeline network, located 7,850 kilometers, that extends across much of Alberta and British Columbia. Advisors' Opinion:
  • [By Vanin Aegea]

    Two companies that have been around for some time now are Imperial Oil (IMO) and Pembina Pipeline (PBA). Political instability in the Middle East has also given an extra relevance to the reserves found at this region, so let us see what the future holds and what gurus think of them.

  • [By Rich Duprey]

    Midstream operator Pembina Pipeline (NYSE: PBA  ) announced yesterday its monthly dividend for July, of $0.135 per share, which is designated an "eligible dividend" for Canadian income tax purposes. For non-resident shareholders, Pembina's dividends are considered "qualified dividends," subject to Canada's withholding tax.

Top 5 Transportation Stocks To Watch Right Now: Marlin Midstream Partners LP (FISH)

Marlin Midstream Partners, LP, incorporated on April 19, 2013, develops, owns, operates and acquires midstream energy assets. The Company provides natural gas gathering, transportation, treating and processing services and One million cubic feet (NGL) transportation services, which it refer to as its midstream natural gas business, and crude oil transloading services, which it refer to as its crude oil logistics business. The Company operates in two segments: Midstream Natural Gas and Crude Oil Logistics. Its primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas; a natural gas processing facility located in Tyler County, Texas; two natural gas gathering systems connected to its Panola County processing facilities, and two NGL transportation pipelines that connect its Panola County and Tyler County processing facilities to third party NGL pipelines.

Midstream Natural Gas

The Company's primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas with an approximate design capacity of 220 One million cubic feet per day (MMcf/d), a natural gas processing facility located in Tyler County, Texas with an approximate design capacity of 80 MMcf/d, two natural gas gathering systems connected to its Panola County processing facilities that include approximately 65 miles of natural gas pipelines with an approximate design capacity of 200 MMcf/d, and two NGL transportation pipelines with an approximate design capacity of 20,000 Stock tank barrel per day (Bbls/d) that connect its Panola County and Tyler County processing facilities to third party NGL pipelines. Its primary midstream natural gas assets are located in long-lived oil and natural gas producing regions in East Texas and gather and process NGL-rich natural gas streams associated with production primarily from the Cotton Valley Sands, Haynesville Shale, Austin Chalk and Eaglebine formations.

Crude Oil Logistics

The Company's crude oil logistics assets consist of two crude oil transloading facilities: its Wildcat facility located in Carbon County, Utah, where it operates one skid transloader and two ladder transloaders, and its Big Horn facility located in Big Horn County, Wyoming, where the Company operates one skid transloader and one ladder transloader. Its transloaders are used to unload crude oil from tanker trucks and load crude oil into railcars and temporary storage tanks. It�� Wildcat and Big Horn facilities provide transloading services for production originating from well-established crude oil producing basins, such as the Uinta and Powder River Basins. Its skid transloaders each have a transloading capacity of 475 Stock tank barrel per hour (Bbls/hr), and its ladder transloaders each have a transloading capacity of 210 Bbls/hr.

Advisors' Opinion:
  • [By Robert Rapier] In last week’s MLP Investing Insider (MLPII) I took a look at the MLP IPOs from the first half of 2013. Today I review the half dozen that have debuted in the second half of 2013.

    Phillips 66 Partners (NYSE: PSXP) launched on July 23 as one of the most anticipated IPOs this year. PSXP owns some of the midstream logistics assets of its sponsor, Phillips 66 (NYSE: PSX). PSXP has yet to announce its first distribution, but according to the IPO prospectus the minimum yield will be $0.85 per unit on an annualized basis. At the current unit price, this equates to a minimum annual yield of 2.8 percent, which is mainly a function of the huge run-up in unit price between the IPO pricing and today’s unit price. If the distribution does come in near the minimum, the unit price will almost certainly correct downward following the announcement.

    Marlin Midstream Partners (Nasdaq: FISH) launched on July 26. The partnership provides natural gas gathering, transportation, treating and processing services, NGL transportation services and crude oil transloading services. Marlin’s assets include three natural gas processing facilities in Texas, two natural gas gathering systems, two NGL transportation pipelines, and two crude oil transloading facilities. Marlin expects most of the gross margin to be generated under fee-based, minimum volume commercial agreements.

    Marlin targets a coverage ratio of 1.10x to support distributions. Marlin’s partnership agreement provides for a minimum quarterly distribution of $0.35 per unit for each whole quarter, or $1.40 per unit on an annualized basis. The prorated distribution for the two months of the recently concluded quarter since tje IPO should be announced soon. The minimum annual yield based on the current unit price is projected at 7.7 percent. The unit price has declined 6 percent since the IPO.

  • [By Aimee Duffy]

    The surge of master limited partnership initial public offerings continued this week, as Phillips 66 Partners (NYSE: PSXP  ) and Marlin Midstream Partners� (NASDAQ: FISH  ) commenced trading. In this video, Fool.com contributor Aimee Duffy looks at both of these IPOs, breaking down the potential opportunities for investors.

Top 5 Transportation Stocks To Watch Right Now: Enterprise Products Partners LP (EPD)

Enterprise Products Partners L.P. (Enterprise), incorporated on April 9, 1998, owns and operates natural gas liquids (NGLs) related businesses of Enterprise Products Company (EPCO). The Company is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and certain petrochemicals. Its midstream energy asset network links producers of natural gas, NGLs and crude oil from supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets. Its midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals; crude oil gathering and transportation, storage and terminals; offshore production platforms; petrochemical and refined products transportation and services; and a marine transportation business that operates on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Its assets include approximately 50,000 miles of onshore and offshore pipelines; 200 million barrels of storage capacity for NGLs, petrochemicals, refined products and crude oil; and 14 billion cubic feet of natural gas storage capacity. In addition, its asset portfolio includes 24 natural gas processing plants, 21 NGL and propylene fractionators, six offshore hub platforms located in the Gulf of Mexico, a butane isomerization complex, NGL import and export terminals, and octane isobutylene production facilities. The Company operates in five business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Onshore Crude Oil Pipelines & Services; Offshore Pipelines & Services, and Petrochemical & Refined Products Services.

NGL Pipelines & Services

The Company�� NGL Pipelines & Services business segment includes its natural gas processing plants and related NGL marketing activities; approximately 16,700 miles of NGL pipel! ines; NGL and related product storage facilities; and 14 NGL fractionators. This segment also includes its import and export terminal operations. At the core of its natural gas processing business are 24 processing plants located across Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. Natural gas produced at the wellhead (especially in association with crude oil) contains varying amounts of NGLs. Once the mixed component NGLs are extracted by a natural gas processing plant, they are transported to a centralized fractionation facility for separation into purity NGL products. Once processed, this natural gas is available for sale through its natural gas marketing activities. Its NGL marketing activities generate revenues from the sale and delivery of NGLs it takes title to through its natural gas processing activities and open market and contract purchases from third parties. Its NGL marketing activities utilize a fleet of approximately 670 railcars, the majority of which are leased from third parties.

The Company�� NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities, refineries and import terminals to fractionation plants and storage facilities; distribute and collect NGL products to and from fractionation plants, storage and terminal facilities, petrochemical plants, export facilities and refineries, and deliver propane to customers along the Dixie Pipeline and certain sections of the Mid-America Pipeline System. Revenues from its NGL pipeline transportation agreements are based upon a fixed fee per gallon of liquids transported multiplied by the volume delivered. Certain of its NGL pipelines offer firm capacity reservation services. It collects storage revenues under its NGL and related product storage contracts based on the number of days a customer has volumes in storage multiplied by a storage fee. In addition, it charges customers throughput fees based on volumes delivered into and subsequently withdrawn from storage. Its ! principal! NGL pipelines include Mid-America Pipeline System, South Texas NGL Pipeline System, Seminole Pipeline, Dixie Pipeline, Chaparral NGL System, Louisiana Pipeline System, Skelly-Belvieu Pipeline, Promix NGL Gathering System, Houston Ship Channel pipeline, Rio Grande Pipeline, Panola Pipeline and Lou-Tex NGL Pipeline. It operates its NGL pipelines with the exception of the Tri-States pipeline.

The Company�� NGL operations include import and export facilities located on the Houston Ship Channel in southeast Texas. It owns an import and export facility located on land it leases from Oiltanking Houston LP. Its import facility can offload NGLs from tanker vessels at rates up to 14,000 barrels per hour depending on the product. During the year ended December 31, 2012, its average combined NGL import and export volumes were 132 thousand barrels per day. In addition to its Houston Ship Channel import/export terminal, it owns a barge dock also located on the Houston Ship Channel, which can load or offload two barges of NGLs or other products simultaneously at rates up to 5,000 barrels per hour.

The Company owns or have interests in 14 NGL fractionators located in Texas and Louisiana. NGL fractionators separate mixed NGL streams into purity NGL products. The primary sources of mixed NGLs fractionated in the United States are domestic natural gas processing plants, crude oil refineries and imports of butane and propane mixtures. Mixed NGLs sourced from domestic natural gas processing plants and crude oil refineries are transported by NGL pipelines and by railcar and truck to NGL fractionation facilities.

The Company�� NGL fractionation facilities process mixed NGL streams for third party customers and support its NGL marketing activities. It earns revenues from NGL fractionation under fee-based arrangements, including a level of demand-based fees. At its Norco facility in Louisiana, it performs fractionation services for certain customers under percent-of-liquids co! ntracts. ! Its fee-based fractionation customers retain title to the NGLs, which it processes for them. Its NGL fractionators include Mont Belvieu fractionator, Shoup and Armstrong fractionator, Hobbs NGL fractionator, Norco NGL fractionator, Promix NGL fractionators and BRF fractionators.

Onshore Natural Gas Pipelines & Services

The Company�� Onshore Natural Gas Pipelines & Services business segment includes approximately 19,900 miles of onshore natural gas pipeline systems, which provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. It leases salt dome natural gas storage facilities located in Texas and Louisiana and own a salt dome storage cavern in Texas, which are integral to its pipeline operations. This segment also includes its related natural gas marketing activities.

The Company�� onshore natural gas pipeline systems and storage facilities provide for the gathering and transportation of natural gas from producing regions, such as the San Juan, Barnett Shale, Permian, Piceance, Greater Green River, Haynesville Shale and Eagle Ford Shale supply basins in the western United States. In addition, these systems receive natural gas production from the Gulf of Mexico through coastal pipeline interconnects with offshore pipelines. Its onshore natural gas pipelines receive natural gas from producers, other pipelines or shippers at the wellhead or through system interconnects and redeliver the natural gas to processing facilities, local gas distribution companies, industrial or municipal customers, storage facilities or to other onshore pipelines.

Its onshore natural gas pipelines generates revenues from transportation agreements under which shippers are billed a fee per unit of volume transported multiplied by the volume gathered or delivered. Its onshore natural gas pipelines offer firm capacity reservation services whereby the shipper pays a contractually stated fee based on the level of through! put capac! ity reserved in its pipelines whether or not the shipper actually utilizes such capacity. Under its natural gas storage contracts, there are typically two components of revenues monthly demand payments, which are associated with a customer�� storage capacity reservation and paid regardless of actual usage, and storage fees per unit of volume stored at its facilities. The Company�� natural gas marketing activities generate revenues from the sale and delivery of natural gas obtained from third party well-head purchases, regional natural gas processing plants and the open market.

Onshore Crude Oil Pipelines & Services

The Company�� Onshore Crude Oil Pipelines & Services business segment includes approximately 5,100 miles of onshore crude oil pipelines, crude oil storage terminals located in Oklahoma and Texas, and its crude oil marketing activities. Its onshore crude oil pipeline systems gather and transport crude oil in New Mexico, Oklahoma and Texas to refineries, centralized storage terminals and connecting pipelines. Revenue from crude oil transportation is based upon a fixed fee per barrel transported multiplied by the volume delivered.

The Company owns crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are used to store crude oil volumes for it and its customers. Under its crude oil terminaling agreements, it charges customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a contractual storage fee. With respect to storage capacity reservation agreements, it collects a fee for reserving storage capacity for customers at its terminals. In addition, it charges its customers throughput (or pumpover) fees based on volumes withdrawn from its terminals. It provides fee-based trade documentation services whereby it documents the transfer of title for crude oil volumes transacted between buyers and sellers at its terminals. The Company�� crude oil marketing activities generate revenues! from the! sale and delivery of crude oil obtained from producers or on the open market.

Offshore Pipelines & Services

The Company�� Offshore Pipelines & Services business segment serves active drilling and development regions, including deepwater production fields, in the northern Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. This segment includes approximately 2,300 miles of offshore natural gas and crude oil pipelines and six offshore hub platforms. Its offshore Gulf of Mexico pipelines provide for the gathering and transportation of natural gas or crude oil. Revenue from its offshore pipelines is derived from fee-based agreements whereby the customer is charged a fee per unit of volume gathered or transported multiplied by the volume delivered. Poseidon Oil Pipeline Company, L.L.C. (Poseidon), in which it has a 36% equity method investment, purchases crude oil from producers and shippers at a receipt point (at a fixed or index-based price less a location differential) and then sells quantities of crude oil at onshore Louisiana locations (at the same fixed or index-based price, as applicable).

The Company�� offshore platforms are components of its pipeline operations. Platforms are used to interconnect the offshore pipeline network; provide means to perform pipeline maintenance; locate compression, separation and production handling equipment and similar assets, and conduct drilling operations during the initial development phase of an oil and natural gas property. Revenues from offshore platform services consist of demand fees and commodity charges. Revenue from commodity charges is based on a fixed-fee per unit of volume delivered to the platform multiplied by the total volume of each product delivered.

Petrochemical & Refined Products Services

The Company�� Petrochemical & Refined Products Services business segment consists of propylene fractionation plants, pipelines and related marketing activities; a butane isom! erization! facility and related pipeline system; octane enhancement and isobutylene production facilities; refined products pipelines, including its Products Pipeline System, and related marketing activities, and marine transportation and other services.

The Company�� propylene fractionation and related activities consist of seven propylene fractionation plants (six located in Mont Belvieu, Texas and a seventh in Baton Rouge, Louisiana), propylene pipeline systems aggregating approximately 680 miles in length and related petrochemical marketing activities. This business includes an export facility and associated above-ground polymer grade propylene storage spheres located in Seabrook, Texas. Results of operations for its polymer grade propylene plants are dependent upon toll processing arrangements and petrochemical marketing activities. The toll processing arrangements include a base-processing fee per gallon (or other unit of measurement). Its petrochemical marketing activities include the purchase and fractionation of refinery grade propylene obtained in the open market and generate revenues from the sale and delivery of products obtained through propylene fractionation. The revenues from its propylene pipelines are based upon a transportation fee per unit of volume multiplied by the volume delivered to the customer. As part of its petrochemical marketing activities, it has refinery grade propylene purchase and polymer grade propylene sales agreements. Its butane isomerization business includes three butamer reactor units and eight associated deisobutanizer units located in Mont Belvieu, Texas, which comprise the commercial isomerization facility in the United States.

The Company�� commercial isomerization units convert normal butane into mixed butane, which is fractionated into isobutane, isobutane and residual normal butane. The uses of isobutane are for the production of propylene oxide, isooctane, isobutylene and alkylate for motor gasoline. These processing arrangements inclu! de a base! -processing fee per gallon (or other unit of measurement). Its isomerization business also generates revenues from the sale of natural gasoline created as a by-product of the isomerization process. The Company owns and operates an octane enhancement production facility located in Mont Belvieu, Texas, which produces isooctane, isobutylene and methyl tertiary butyl ether (MTBE). The products produced by this facility are used in reformulated motor gasoline blends. The isobutane feedstocks consumed in the production of these products are supplied by its isomerization units. The Company owns a facility located on the Houston Ship Channel, which produces high purity isobutylene (HPIB). The feedstock for this plant is produced by its octane enhancement facility located at its Mont Belvieu complex. HPIB is used in the production of alkylated phenols used as antioxidants, lube oil additives, butyl rubber and resins.

Refined products pipelines and related activities consist of its Products Pipeline System, equity method investment in Centennial Pipeline LLC (Centennial) and refined products marketing activities. The Products Pipeline System transports refined products, and petrochemicals, such as ethylene and propylene and NGLs, such as propane and normal butane. These refined products are produced by refineries and include gasoline, diesel fuel, aviation fuel, kerosene, distillates and heating oil. Refined products also include blend stocks, such as raffinate and naphtha. Blend stocks are used to produce gasoline or as a feedstock for certain petrochemicals. The Centennial Pipeline intersects its Products Pipeline System near Creal Springs, Illinois, and loops the Products Pipeline System between Beaumont, Texas and south Illinois. In addition, it has refined products terminals located at Aberdeen, Mississippi and Boligee, Alabama adjacent to the Tombigbee River and on the Houston Ship Channel in Pasadena, Texas. Its related marketing activities generate revenues from the sale and delivery of refin! ed produc! ts obtained from third parties on the open market.

The Company�� marine transportation business consists of tow boats and tank barges, which are used to transport refined products, crude oil, asphalt, condensate, heavy fuel oil, liquefied petroleum gas and other petroleum products along inland and intracoastal the United States waterways. Its marine transportation assets service refinery and storage terminal customers along the Mississippi River, the intracoastal waterway between Texas and Florida and the Tennessee-Tombigbee Waterway system. It owns a shipyard and repair facility located in Houma, Louisiana and marine fleeting facilities in Bourg, Louisiana and Channelview, Texas. Other services consist of the distribution of lubrication oils and specialty chemicals and the bulk transportation of fuels by truck, in Oklahoma, Texas, New Mexico, Kansas and the Rocky Mountain region of the United States.

Advisors' Opinion:
  • [By Arjun Sreekumar]

    One of the major reasons for this dramatic contraction in the WTI-Brent spread has been the decline in crude oil stockpiles at Cushing due to improved pipeline capacity. One of the most important projects in this respect is the Seaway pipeline, which ships crude from Cushing to Houston-area refineries. In January, the line's joint operators,�Enterprise Products Partners (NYSE: EPD  ) and Enbridge,�boosted capacity along the Seaway system from 150,000 barrels per day to 280,000 barrels per day, which provided additional relief to the glut at Cushing.

Top 5 Transportation Stocks To Watch Right Now: DryShips Inc (DRYS)

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocean Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.

As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of four Aframax and one Suezmax tankers.

The Company�� drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk vessels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.

Drybulk Operations

The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.

Offshore Drilling Operations

In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko Cote d��voire Company (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).

The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShips�� wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryShips also has contracts to provide offshore drilling services and drilling units.

Tanker Operations

The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.

Advisors' Opinion:
  • [By Dan Caplinger]

    Finally, beyond the Dow, DryShips (NASDAQ: DRYS  ) has fallen more than 6% as investors anticipate the shipping company's earnings release after today's close. Recent optimism has spurred greater interest in DryShips and its peers, but it'll take a long time for anticipated improvement in economic conditions to make their effects felt among shippers. With its ongoing financial challenges, DryShips needs to give encouraging guidance for its future if it wants to keep investors assured that the stock is a good investment.

Top 5 Transportation Stocks To Watch Right Now: GasLog Ltd (GLOG)

GasLog Ltd. (GasLog), incorporated on July 16, 2003, is an owner, operator and manager of liquefied natural gas (LNG) carriers. The Company is a holding company. Its subsidiaries conduct all of its operations and own all of its operating assets, including its ships. The Company operates in two segments: vessel ownership and vessel management. In the vessel ownership segment, the services provided primarily consist of chartering out company-owned LNG carriers, and in the vessel management segment the services provided consist of LNG carrier technical management services, as well as LNG carrier construction supervision services and other vessel management services provided to the Company�� vessel ownership segment and to external third parties.

In February 2011, GasLog Carriers Ltd. established two vessel-owning companies, GAS-five Ltd. and GAS-six Ltd. In March 2011, GasLog Carriers Ltd. established two vessel-owning companies, GAS-seven Ltd. and GAS-eight Ltd. In June 2011, GasLog Carriers Ltd. established two additional vessel-owning companies, GAS-nine Ltd. and GAS-ten Ltd. In June 2011, Ceres Shipping Ltd. (Ceres Shipping) transferred its interest in GasLog Ltd. to Blenheim Holdings Ltd. (Blenheim Holdings). In June 2011, an entity jointly owned by the Livanos and Radziwill families (Joint Venture Partner) sold its 49% interest in GAS-three Ltd., GAS-four Ltd., GAS-five Ltd. and GAS-six Ltd. to Ceres Shipping. Ceres Shipping contributed the 49% interest in GAS-three Ltd., GAS-four Ltd., GAS-five Ltd. and GAS-six Ltd. to Blenheim Holdings, who in turn contributed the 49% interest in these four vessel-owning companies to GasLog Ltd., which contributed the same to GasLog Carriers Ltd. As of December 31, 2011, the Company owned 100% interest in GAS-three Ltd., GAS-four Ltd., GAS-five Ltd. and GAS-six Ltd. On July 11, 2011 and September 5, 2011, the Company transferred its interest of two dormant subsidiaries, GasLog Holdings Limited and GasLog Services Limited, respectively, to Ceres Shi! pping.

As of December 31, 2011, the Company�� owned fleet consisted of 10 wholly owned LNG carriers. As of December 31, 2011, the Company managed and operated 14 LNG carriers, which included its owned ships, as well as 11 ships owned or leased by BG Group plc (BG Group), a participant in the worldwide energy and natural gas markets, and one additional LNG carrier in which it had a 25% interest. As of December 31, 2011, the Company owned a 25% interest in Egypt LNG Shipping Ltd. (Egypt LNG), whose principal asset is the LNG carrier Methane Nile Eagle. The Company�� owned fleet includes the GasLog Savannah, the GasLog Singapore, four LNG carriers on order at Samsung Heavy Industries Co., Ltd. (Samsung Heavy Industries) in South Korea, two LNG carriers on order at Samsung Heavy Industries in South Korea, and two LNG carriers on order at Samsung Heavy Industries in South Korea.

The Company�� wholly owned subsidiary, GasLog LNG Services Ltd., (GasLog LNG Services) handles the technical management of its fleet. Through GasLog LNG Services, it provides technical ship management services for 12 LNG carriers owned by third parties in addition to management of the two LNG carriers operating in its owned fleet. The Company provides the services of its owned ships under time charters. The Company�� subsidiaries include GasLog Investments Ltd., GasLog Monaco S.A.M., Ceres LNG Employee Incentive Scheme Ltd., GasLog Carriers Ltd., GAS-one Ltd., GAS-two Ltd., GAS-three Ltd., GAS-four Ltd., GasLog Shipping Company Ltd., GasLog Shipping Limited and Egypt LNG Shipping Ltd.

Advisors' Opinion:
  • [By Rich Duprey]

    LNG carrier owner-operator GasLog (NYSE: GLOG  ) will pay a second-quarter dividend of $0.11 per share, the same rate it's paid for the last two quarters after initiating its dividend payment, the company announced today.

Top 5 Transportation Stocks To Watch Right Now: CSX Corporation (CSX)

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. The company offers traditional rail service, and the transport of intermodal containers and trailers. It transports crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer, agricultural, automotive, paper, and chemical products; and utility, industrial, and export coal to electricity-generating power plants, steel manufacturers, industrial plants, and deep-water port facilities. The company also provides intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States, as well as performs drayage services and trucking dispatch operations. In addition, it operates distribution centers and storage locations; connects non-rail served customers to the benefits of rail by transferring products, such as ethanol and minerals, from rail to trucks; engages in the real estate sale, leasing, acquisition, and management and development activities. CSX Corporation operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as operates approximately 4,000 locomotives. It also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

Advisors' Opinion:
  • [By Dan Caplinger]

    CSX (NYSE: CSX  ) will release its quarterly report next Tuesday, and investors have already prepared for a slight reduction in the company's net income from a year ago. But even as the railroad industry has had to deal with the big drop in domestic demand for commodities like coal and iron ore, it has found ways to replace lost revenue and hold its own against unfavorable trends, and that's a big part of why CSX earnings have held up as well as they have.

  • [By Chuck Saletta]

    Two of those companies, railroad tycoon CSX (NYSE: CSX  ) and safety equipment provider Mine Safety Appliances (NYSE: MSA  ) , paid out higher per-share amounts than they did last quarter. Both raised their payments by about 7% -- with CSX's moving from $0.14 to $0.15 per share and Mine Safety Appliances' rising from $0.28 to $0.30.

Top 5 Transportation Stocks To Watch Right Now: C.H. Robinson Worldwide Inc.(CHRW)

C.H. Robinson Worldwide, Inc., a third-party logistics company, provides multimodal freight transportation services and logistics solutions to companies in various industries worldwide. It offers freight transportation services through its contractual relationships with various transportation companies, including motor carriers, railroads, air freight carriers, and ocean carriers. The company has contractual relationships with approximately 49,000 transportation companies. Its transportation and logistics services include truckload, less-than-truckload, intermodal, ocean, and air freight transportation, as well as transportation management, customs brokerage, and warehousing services. In addition, it engages in buying, selling, and marketing fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors under the Fresh 1 and OurWorld Organics names, as well as under Tropicana, Welch?s, Mott?s, and Glory Foods names. Further, the company provides spend management and payment processing services through a platform that facilitates funds transfer, vendor payments, fuel purchasing, and online expense management primarily for motor carriers and truck stop chains. It operates through a network of 232 branch offices in North America, Europe, Asia, South America, Australia, and the Middle East. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

Advisors' Opinion:
  • [By Arie Goren]

    After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

Top 5 Transportation Stocks To Watch Right Now: Enbridge Energy Partners LP (EEP)

Enbridge Energy Partners, L.P. (the Partnership) owns and operates crude oil and liquid petroleum transportation and storage assets, and natural gas gathering, treating, processing, transportation and marketing assets in the United States. The Company was formed by its Enbridge Energy Company, Inc. (General Partner), to own and operate the Lakehead system, which is the United States portion of a crude oil and liquid petroleum pipeline system extending from western Canada through the upper and lower Great Lakes region of the United States to eastern Canada. A subsidiary of Enbridge Inc. (Enbridge), owns the Canadian portion of the Mainline system. Enbridge, which is based in Calgary, Alberta, Canada is a provider of energy transportation, distribution and related services in North America and internationally. Enbridge is the ultimate parent of its General Partner. As of December 31, 2011, its portfolio of assets included the approximately 6,500 miles of crude oil gathering and transportation lines and 32 million barrels of crude oil storage and terminaling capacity; natural gas gathering and transportation lines totaling approximately 11,500 miles; nine natural gas treating and 25 natural gas processing facilities with an aggregate capacity of approximately 3,255 million cubic feet per day, including plants; trucks, trailers and railcars for transporting natural gas liquids (NGLs), crude oil and carbon dioxide, and marketing assets, which provide natural gas supply, transmission, storage and sales services. The Company conducts its business through three business segments: Liquids, Natural Gas and Marketing.

Liquids Segment

The Company�� Lakehead system consists of crude oil and liquid petroleum common carrier pipelines and terminal assets in the Great Lakes and Midwest regions of the United States. The Mainline system serves refining centers in the Great Lakes and Midwest regions of the United States and the Province of Ontario, Canada. Its Lakehead system spans a distance ! of approximately 1,900 miles, and consists of approximately 5,100 miles of pipe with diameters ranging from 12 inches to 48 inches, and is transporter of crude oil and liquid petroleum from Western Canada to the United States. In addition, the system has 61 pump station locations with a total of approximately 900,000 installed horsepower and 72 crude oil storage tanks with capacity of approximately 13.9 million barrels. The Mainline system operates in a segregation, or batch mode, allowing the transport in excess of 50 crude oil commodities, including light, medium and heavy crude oil, condensate and NGLs.

The Company�� Mid-Continent system is located within PADD II and is consisted of its Ozark pipeline and storage terminals at Cushing and El Dorado, Kansas. Its Mid-Continent system includes over 430 miles of crude oil pipelines and 17.3 million barrels of crude oil storage capacity. Its Ozark pipeline transports crude oil from Cushing to Wood River where it delivers to ConocoPhillips��Wood River refinery and interconnects with the Woodpat Pipeline and the Wood River Pipeline. The storage terminals consist of 91 individual storage tanks ranging in size from 58,000 to 575,000 barrels. Of the 17.3 million barrels of storage capacity on its Mid-Continent system, the Cushing terminal accounts for 16.1 million barrels. A portion of the storage facilities are used for operational purposes, while it contracts the remainder of the facilities with various crude oil market participants for their term storage requirements. Contract fees include fixed monthly capacity fees, as well as utilization fees, which it charges for injecting crude oil into and withdrawing crude oil from the storage facilities.

The Company�� Mid-Continent system operates under month-to-month transportation arrangements and both long-term and short-term storage arrangements with its shippers. Its North Dakota system is a crude oil gathering and interstate transportation system servicing the Williston basin in! North Da! kota and Montana, which includes the Bakken and Three Forks formations. The crude oil gathering pipelines of its North Dakota system collect crude oil from points near producing wells in approximately 22 oil fields in North Dakota and Montana. Its North Dakota system is made at Clearbrook to its Lakehead system and to a third-party pipeline system. As of December 31, 2011, its North Dakota system included approximately 240 miles of crude oil gathering lines connected to a transportation line, which is approximately 730 miles long, with a capacity of approximately 210,000 barrels per day. Its North Dakota system also has 21 pump stations, one delivery station and 11 storage facilities with an aggregate working storage capacity of approximately 870,000 barrels. During the year ended December 31, 2011, it added 25,000 barrels per day of capacity from Berthold, North Dakota to the international border near Lignite, North Dakota.

Natural Gas Segment

The Company owns and operates natural gas gathering, treating, processing and transportation systems, as well as trucking, rail and liquids marketing operations. It purchases and gathers natural gas from the wellhead and delivers it to plants for treating and/or processing and to intrastate or interstate pipelines for transmission to wholesale customers, such as power plants, industrial customers and local distribution companies. As of December 31, 2011, it had nine active treating plants and 25 active processing plants, including two hydrocarbon dewpoint control facilities (HCDP) plants. Its treating facilities have a combined capacity, which approximates 1,240 million cubic feet per day while the combined capacity of its processing facilities approximates 2,015 million cubic feet per day, including 350 million cubic feet per day provided by the HCDP plants.

The Company�� natural gas business consists of East Texas system, Anadarko system and North Texas system. East Texas system includes approximately 3,900 miles of nat! ural gas ! gathering and transportation pipelines, eight natural gas treating plants and five natural gas processing plants, including two HCDP plants. Anadarko system consists of approximately 2,900 miles of natural gas gathering and transportation pipelines in southwest Oklahoma and the Texas panhandle, one natural gas treating plant and 11 natural gas processing plants. North Texas system includes approximately 4,700 miles of natural gas gathering pipelines and nine natural gas processing plants located in the Fort Worth basin. Its East Texas system is located in the East Texas basin. Natural gas on its North Texas system is produced in the Barnett shale area within the Fort Worth basin conglomerate. Its Anadarko system is located within the Anadarko basin.

As of December 31, 2011, the Company�� Elk City system includes one carbon dioxide treating plant and three cryogenic processing plants with a total capacity of 370 million cubic feet per day, and a NGL production capability of 20,000 barrels per day. It also includes its trucking and NGL marketing operations in its Natural Gas segment. These operations include the transportation of NGLs, crude oil and other products by truck and railcar from wellheads and treating, processing and fractionation facilities to wholesale customers, such as distributors, refiners and chemical facilities. In addition, its trucking and NGL marketing operations resells these products. Its services are provided using trucks, trailers and rail cars, pipeline capacity, fractionation agreements, product treating and handling equipment. Its trucking operations transport NGLs, condensate and crude oil from its processing facilities and from third party producers to its United States Gulf Coast customers. As of December 31, 2011, its fleet consisted of approximately 220 trucks and 375 trailers. Its trucking and NGL marketing operations are wholesale customers, such as refineries and propane distributors. Its trucking and NGL marketing operations also market products to whol! esale cus! tomers, such as petrochemical plants.

Marketing Segment

The Company�� Marketing segment transacts with various counterparties to provide natural gas supply, transportation, balancing, storage and sales services. Its Marketing business uses third-party storage capacity to balance supply and demand factors within its portfolio. Its Marketing business pays third-party storage facilities and pipelines for the right to store gas for various periods of time. These contracts may be denoted as firm storage, interruptible storage or parking and lending services. Its Marketing business leases third-party pipeline capacity downstream from its Natural Gas assets under firm transportation contracts. This capacity is leased for various lengths of time and at rates.

Advisors' Opinion:
  • [By Robert Rapier]

    Next week�� issue will tackle the three remaining questions: one on MLP equivalents in Canada and Australia, one on Enbridge Energy Partners (NYSE: EEP) �and TC Pipelines (NYSE: TCP), and a third query on Access Midstream Partners (NYSE: ACMP), Crestwood Midstream Partners (NYSE: CMLP) and Mid-Con Energy Partners (Nasdaq: MCEP).

Top 5 Transportation Stocks To Watch Right Now: World Point Terminals LP (WPT)

World Point Terminals, LP, incorporated on April 19, 2013, is a fee-based Delaware limited partnership formed to own, operate, develop and acquire terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. WPT GP, LLC is the general partner of the Company. It operates in a single reportable segment consists primarily of the fee-based storage and terminaling services it performs under contracts with its customers. The Company�� storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the United States and, as of May 31, 2013, had a combined available storage capacity of 12.4 million barrels. The Company provides terminaling and storage of light refined products, such as gasoline, distillates and jet fuels; heavy refined products, such as residual fuel oils and liquid asphalt, and crude oil. Most of its terminal facilities are located on waterways, and have truck racks. Several of its terminal facilities also have rail or pipeline access. As of May 31, 2013, approximately 93% of its available storage capacity was under contract.

The Company generates revenue from Storage Services Fees, Ancillary Services Fees and Additive Services Fees. Storage Services Fees are its customers pay base storage services fees, which are fixed monthly fees paid at the beginning of each month to reserve storage capacity in its tanks and to compensate it for receiving up to a base product volume on their behalf. The Company charges ancillary services fees to its customers for providing services, such as heating, mixing and blending its customers��products that are stored in its tanks; transferring its customers��products between its tanks; at its Granite City terminal, adding polymer to liquid asphalt, and rail car loading and dock operations. The Company generates revenue from fees for injecting generic gasoline, gasoline, lubricity, red dye and cold flow additives to its customers��products.

Advisors' Opinion:
  • [By Robert Rapier]

    World Point Terminals (NYSE: WPT) owns and operates terminals and other assets for the storage of light refined products, heavy refined products and crude oil. World Point’s storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the US. The partnership debuted on Aug. 9, and units have gained 2 percent since. The partnership agreement provides for a minimum quarterly distribution of $1.20 per unit on an annualized basis. At the recent closing price of $19.64/unit, this equates to a minimum annualized yield of 6.1 percent.

  • [By John Emerson]

    Berman pioneered the idea of the World Poker Tour (WPT) and sold the concept to the Travel Channel. Watching poker on television had always been boring since the viewing audience could not see the down cards which the players held. Berman remedied that problem by allowing a camera to expose the down cards to the TV audience. That idea suddenly transformed Texas Holdem into a fascinating spectator�� sport. By the end of 2003 the stock had reached its book value of 15 dollars a share and I decided to take my profits, perhaps a bit prematurely. The stock quickly climbed to about 30 dollars a share on sheer momentum.

  • [By Jon C. Ogg]

    World Point Terminals L.P. (NYSE: WPT) was initiated as Outperform with a $23 price target at Credit Suisse.

    See also more analyst upgrades and downgrades for Tuesday.

Top 5 Transportation Stocks To Watch Right Now: Kinder Morgan Inc (KMI)

Kinder Morgan, Inc. (KMI), incorporated on August 23, 2006, owns and manages a diversified portfolio of energy transportation and storage assets. The Company operates in five business segments: Products Pipelines-KPM, Natural Gas Pipelines-KMP, CO2-KMP, Terminals-KMP and Kinder Morgan Canada-KMP. The Company through Kinder Morgan Energy Partners, L.P. (KMP) operates or owns an interest in approximately 37,000 miles of pipelines and approximately 180 terminals. These pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and other products, and its terminals store petroleum products and chemicals, and handle such products as ethanol, coal, petroleum coke and steel. The Company is a provider of carbon dioxide (CO2), for enhanced oil recovery projects in North America. On December 15, 2011, KMP acquired a refined petroleum products terminal located on a 14-acre site in Lorton, Virginia from Motiva Enterprises, LLC. On May 25, 2012, KMI acquired El Paso Corporation. In August 2012, Kinder Morgan Energy Partners, L.P. acquired Tennessee Gas Pipeline (TGP) and a 50% interest in El Paso Natural Gas (EPNG) pipeline from KMI.

NGPL PipeCo LLC consists of its 20% interest in NGPL PipeCo LLC, the owner of Natural Gas Pipeline Company of America LLC and certain affiliates (collectively NGPL), an interstate natural gas pipeline and storage system, which it operates. On November 30, 2011, KMP acquired certain natural gas treating assets from SouthTex Treaters, Inc. On July 1, 2011, KMP acquired from Petrohawk Energy Corporation both the remaining 50% ownership interest in KinderHawk Field Services LLC that KMP did not already own and a 25% equity ownership interest in EagleHawk Field Services LLC. As of December 31, 2011, its interests in KMP and its affiliates consisted of the general partner interest, which the Company holds through its ownership of the general partner of KMP and which entitles the Company to receive incentive distributions; 21.7 million of the 238.0 mi! llion outstanding KMP units, representing an approximately 6.4% limited partner interest, and14.1 million of KMP�� 98.5 million outstanding i-units, representing an approximately 4.2% limited partner interest, through its ownership of 14.1 million Kinder Morgan Management, LLC (KMR) . The Company�� subsidiaries include Kinder Morgan Kansas, Inc. (KMK) and Kinder Morgan Energy Partners, L.P. (KMP).

Products Pipelines-KMP

The segment consists of KMP�� refined petroleum products and natural gas liquids pipelines and their associated terminals, Southeast terminals, and its transmix processing facilities. Products Pipelines-KMP, which consists of approximately 8,400 miles of refined petroleum products pipelines that deliver gasoline, diesel fuel, jet fuel and natural gas liquids to various markets; plus approximately 60 associated product terminals and petroleum pipeline transmix processing facilities serving customers across the United States.

KMP�� West Coast Products Pipelines include the SFPP, L.P. operations (often referred to in this report as the Pacific operations), the Calnev pipeline operations, and the West Coast Terminals operations. The assets include interstate common carrier pipelines regulated by the FERC, intrastate pipelines in the state of California regulated by the California Public Utilities Commission, and certain non rate-regulated operations and terminal facilities. The Pacific operations serve six western states with approximately 2,500 miles of refined petroleum products pipelines and related terminal facilities that provide refined products to population centers in the United States, including California; Las Vegas and Reno, Nevada, and the Phoenix-Tucson, Arizona corridor. During the fiscal year ended February 22, 2012 (fiscal 2011), the Pacific operations��mainline pipeline system transported approximately 1,071,400 barrels per day of refined products, with the product mix being approximately 59% gasoline, 24% diesel fuel, and 17! % jet fue! l.

The Calnev pipeline system consists of two parallel 248-mile, 14-inch and eight-inch diameter pipelines that run from KMP�� facilities at Colton, California to Las Vegas, Nevada. The pipeline serves the Mojave Desert through deliveries to a terminal at Barstow, California and two railroad yards. It also serves Nellis Air Force Base, located in Las Vegas, and also includes approximately 55 miles of pipeline serving Edwards Air Force Base in California. During fiscal 2011, the Calnev pipeline system transported approximately 118,800 barrels per day of refined products, with the product mix being approximately 41% gasoline, 33% diesel fuel, and 26% jet fuel.

KMP owns approximately 51% of Plantation Pipe Line Company, the sole owner of the approximately 3,100-mile refined petroleum products Plantation pipeline system serving the southeastern United States. KMP operates the system pursuant to agreements with Plantation and its wholly-owned subsidiary, Plantation Services LLC. The Plantation pipeline system originates in Louisiana and terminates in the Washington, District of Columbia area. It connects to approximately 130 shipper delivery terminals throughout eight states and serves as a common carrier of refined petroleum products to various metropolitan areas, including Birmingham, Alabama; Atlanta, Georgia; Charlotte, North Carolina, and the Washington, District of Columbia area. An affiliate of ExxonMobil Corporation owns the remaining approximately 49% ownership interest, and ExxonMobil has historically been one of the shippers on the Plantation system both in terms of volumes and revenues. In fiscal 2011, Plantation delivered approximately 518,000 barrels per day of refined petroleum products, with the product mix being approximately 67% gasoline, 20% diesel fuel, and 13% jet fuel.

KMP owns 50% of Cypress Interstate Pipeline LLC, the sole owner of the Cypress pipeline system. KMP operates the system pursuant to a long-term agreement. The Cypress pipeline is a! n interst! ate common carrier natural gas liquids pipeline originating at storage facilities in Mont Belvieu, Texas and extending 104 miles east to a connection with Westlake Chemical Corporation, a petrochemical producer in the Lake Charles, Louisiana area. Mont Belvieu, located approximately 20 miles east of Houston, is a hub for natural gas liquids gathering, transportation, fractionation and storage in the United States. The Cypress pipeline system has a capacity of approximately 55,000 barrels per day for natural gas liquids. In fiscal 2011, the system transported approximately 45,000 barrels per day.

KMP�� Southeast terminal operations consist of 27 liquid petroleum products terminals located along the Plantation/Colonial pipeline corridor in the Southeastern United States. The marketing activities of the Southeast terminal operations are focused on the Southeastern United States from Mississippi through Virginia, including Tennessee. The primary function involves the receipt of petroleum products from common carrier pipelines, short-term storage in terminal tankage, and subsequent loading onto tank trucks. Combined, the Southeast terminals have a total storage capacity of approximately 9.1 million barrels. In fiscal 2011, these terminals transferred approximately 353,000 barrels of refined products per day and together handled 9.2 million barrels of ethanol.

KMP�� Transmix operations include the processing of petroleum pipeline transmix, a blend of dissimilar refined petroleum products that have become co-mingled in the pipeline transportation process. During pipeline transportation, different products are transported through the pipelines abutting each other, and generate a volume of different mixed products called transmix. KMP processes and separates pipeline transmix into pipeline-quality gasoline and light distillate products at six separate processing facilities located in Colton, California; Richmond, Virginia; Dorsey Junction, Maryland; Indianola, Pennsylvania; Wood Riv! er, Illin! ois; and Greensboro, North Carolina. Combined, KMP�� transmix facilities processed approximately 10.6 million barrels of transmix in 2011.

Natural Gas Pipelines-KMP

Natural Gas Pipelines-KMP, which consists of approximately 16,200 miles of natural gas transmission pipelines and gathering lines, plus natural gas storage, treating and processing facilities, through which natural gas is gathered, transported, stored, treated, processed and sold. The Natural Gas Pipelines-KMP business segment contains both interstate and intrastate pipelines. Its primary businesses consist of natural gas sales, transportation, storage, gathering, processing and treating. Within this segment, KMP owns approximately 16,200 miles of natural gas pipelines and associated storage and supply lines that are strategically located at the center of the North American pipeline grid. KMP�� transportation network provides access to the gas supply areas in the western United States, Texas and the Midwest, as well as consumer markets.

KMP�� subsidiary, Kinder Morgan Treating, L.P., owns and operates (or leases to producers for operation) treating plants that remove impurities (such as carbon dioxide and hydrogen sulfide) and hydrocarbon liquids from natural gas before it is delivered into gathering systems and transmission pipelines to ensure that it meets pipeline quality specifications. Additionally, its subsidiary KM Treating Production LLC designs, constructs, and sells custom and stock natural gas treating plants. Combined, KMP�� rental fleet of treating assets include approximately 213 natural gas amine-treating plants, approximately 56 hydrocarbon dew point control plants, and more than 140 mechanical refrigeration units that are used to remove impurities and hydrocarbon liquids from natural gas streams prior to entering transmission pipelines.

KinderHawk Field Services LLC gathers and treats natural gas in the Haynesville shale gas formation located in northwest Louisiana.! Its asse! ts consist of more than 450 miles of natural gas gathering pipeline in service, with average throughput of approximately 1.1 billion cubic feet per day of natural gas. Additionally, the system�� natural gas amine treating plants have a capacity of approximately 2,600 gallons per minute. During 2011, KinderHawk executed firm gathering and treating agreements with a third-party producer for the long-term of five sections. KinderHawk also holds additional third-party gas gathering and treating commitments. In total, these contracts provide for the dedication of 36 sections, from four shippers, for 3 to 10 years. EagleHawk Field Services LLC provides natural gas gathering and treating services in the Eagle Ford shale formation in South Texas.

KMP owns a 40% interest in Endeavor Gathering LLC, which provides natural gas gathering service to GMX Resources��exploration and production activities in its Cotton Valley Sands and Haynesville/Bossier Shale horizontal well developments located in East Texas. GMX Resources, Inc. operates and owns the remaining 60% ownership interest in Endeavor Gathering LLC. Endeavor�� gathering system consists of over 100 miles of gathering lines and 25,000 horsepower of compressors that collect and compress natural gas from GMX Resources��operated natural gas production from wells located in its core area. The natural gas gathering system has takeaway capacity of approximately 115 million cubic feet per day. KMP owns a 50% equity interest in Eagle Ford Gathering LLC, which provides natural gas gathering, transportation and processing services to natural gas producers in the Eagle Ford shale gas formation in south Texas.

KMP�� Natural Gas Pipelines��upstream operations consist of its Casper and Douglas, Wyoming natural gas processing operations and its 49% ownership interest in the Red Cedar Gas Gathering Company. KMP owns and operates its Casper and Douglas, Wyoming natural gas processing plants, and combined, these plants have the capacity ! to proces! s up to 185 million cubic feet per day of natural gas depending on raw gas quality. Casper and Douglas are the natural gas processing plants, which provide straddle processing of natural gas flowing into KMP�� Kinder Morgan Interstate Gas Transmission LLC pipeline system. KMP also owns the operations of a carbon dioxide/sulfur treating facility located in the West Frenchie Draw field of the Wind River Basin of Wyoming, and includes this facility as part of its Casper and Douglas operations. The West Frenchie Draw treating facility has a capacity of 50 million cubic feet per day of natural gas.

KMP owns a 49% interest in the Red Cedar Gathering Company (Red Cedar). Red Cedar owns and operates natural gas gathering, compression and treating facilities in the Ignacio Blanco Field in La Plata County, Colorado. The remaining 51% interest in Red Cedar is owned by the Southern Ute Indian Tribe. Red Cedar�� natural gas gathering system consists of approximately 750 miles of gathering pipeline connecting more than 900 producing wells, 104,600 horsepower of compression at 22 field compressor stations and three carbon dioxide treating plants. The capacity and throughput of the Red Cedar gathering system is approximately 600 million cubic feet per day of natural gas.

KMP�� subsidiary, TransColorado Gas Transmission Company LLC (TransColorado), owns a 300-mile interstate natural gas pipeline that extends from approximately 20 miles southwest of Meeker, Colorado to the Blanco Hub near Bloomfield, New Mexico. KMP operates and owns 50% of the 1,679-mile Rockies Express natural gas pipeline system, a natural gas pipelines constructed in North America. The Rockies Express system consists of three pipeline segments: a 327-mile pipeline that extends from the Meeker Hub in northwest Colorado, across southern Wyoming to the Cheyenne Hub in Weld County, Colorado, a 713-mile pipeline from the Cheyenne Hub to an interconnect in Audrain County, Missouri and a 639-mile pipeline from Audrain Count! y, Missou! ri to Clarington, Ohio. KMP�� ownership is through its 50% equity interest in Rockies Express Pipeline LLC, the sole owner of the Rockies Express pipeline system. Sempra Pipelines & Storage, a unit of Sempra Energy, and ConocoPhillips each own 25% of Rockies Express Pipeline LLC.

The Rockies Express pipeline system is powered by 18 compressor stations totaling approximately 427,000 horsepower. The system is capable of transporting two billion cubic feet per day of natural gas from Meeker, Colorado to the Cheyenne Market Hub in northeastern Colorado and 1.8 billion cubic feet per day from the Cheyenne Hub to the Clarington Hub in Monroe County in eastern Ohio. Capacity on the Rockies Express system is contracted under 10 year firm service agreements with producers from the Rocky Mountain supply basin. These agreements provide the pipeline with fixed monthly reservation revenues for the primary term of such contracts through 2019, with the exception of one agreement representing approximately 10% of the pipeline capacity that grants a shipper the one-time option to terminate effective late 2014. With its connections to numerous other pipeline systems along its route, the Rockies Express system has access to almost all of the gas supply basins in Wyoming, Colorado and eastern Utah. Rockies Express is capable of delivering gas to multiple markets along its pipeline system, primarily through interconnects with other interstate pipeline companies and direct connects to local distribution companies.

KMP�� Central interstate natural gas pipeline group, which operates primarily in the Mid-Continent region of the United States, consists of four natural gas pipeline systems: Trailblazer Pipeline, Kinder Morgan Louisiana Pipeline, KMP�� 50% ownership interest in the Midcontinent Express Pipeline and KMP�� 50% ownership interest in the Fayetteville Express Pipeline. KMP�� subsidiary, Trailblazer Pipeline Company LLC (Trailblazer), owns the 436-mile Trailblazer natural gas pipelin! e system.! The Trailblazer pipeline system originates at an interconnection with Wyoming Interstate Company Ltd.�� pipeline system near Rockport, Colorado and runs through southeastern Wyoming to a terminus near Beatrice, Nebraska where it interconnects with NGPL�� and Northern Natural Gas Company�� pipeline systems. NGPL manages, maintains and operates the Trailblazer system for KMP, for which it is reimbursed at cost. Trailblazer offers its customers firm and interruptible transportation, and in 2011, it transported an average of approximately 717 million cubic feet per day of natural gas.

KMP�� subsidiary, Kinder Morgan Louisiana Pipeline LLC owns the Kinder Morgan Louisiana natural gas pipeline system. KMP owns a 50% interest in Midcontinent Express Pipeline LLC, the sole owner of the approximate 500-mile Midcontinent Express natural gas pipeline system. KMP also operates the Midcontinent Express pipeline system. Regency Midcontinent Express LLC owns the remaining 50% ownership interest. The Midcontinent Express pipeline system originates near Bennington, Oklahoma and extends eastward through Texas, Louisiana, and Mississippi, and terminates at an interconnection with the Transco Pipeline near Butler, Alabama. It interconnects with numerous pipeline systems and provides an important infrastructure link in the pipeline system moving natural gas supply from newly developed areas in Oklahoma and Texas into the United States��eastern markets. The pipeline system is comprised of approximately 30-miles of 30-inch diameter pipe, 275-miles of 42-inch diameter pipe and 197-miles of 36-inch diameter pipe. Midcontinent Express also has four compressor stations and one booster station totaling approximately 144,500 horsepower. It has two rate zones: Zone 1 (which has a capacity of 1.8 billion cubic feet per day) beginning at Bennington and extending to an interconnect with Columbia Gulf Transmission near Delhi, in Madison Parish Louisiana and Zone 2 (which has a capacity of 1.2 billion cubic feet ! per day) ! beginning at Delhi and terminating at an interconnection with Transco Pipeline near the town of Butler in Choctaw County, Alabama. Capacity on the Midcontinent Express system is 99% contracted under long-term firm service agreements that expire between 2012 and 2021. The ity of volume is contracted to producers moving supply from the Barnett shale and Oklahoma supply basins.

CO2-KMP

The CO2-KMP business segment consists of Kinder Morgan CO2 Company, L.P. and its consolidated affiliates, (collectively referred to KMCO2). The CO2-KMP business segment produces, transports, and markets carbon dioxide for use in enhanced oil recovery projects as a flooding medium for recovering crude oil from mature oil fields. CO2-KMP, which produces, markets and transports, through approximately 2,000 miles of pipelines, carbon dioxide to oil fields that use carbon dioxide to increase production of oil; owns interests in and/or operates eight oil fields in West Texas; and owns and operates a 450-mile crude oil pipeline system in West Texas

KMCO2 holds ownership interests in oil-producing fields located in the Permian Basin of West Texas, including an approximate 97% working interest in the SACROC unit; an approximate 50% working interest in the Yates unit; an approximate 21% net profits interest in the H.T. Boyd unit; an approximate 65% working interest in the Claytonville unit; an approximate 99% working interest in the Katz Strawn unit, and lesser interests in the Sharon Ridge unit, the Reinecke unit and the MidCross unit.

KMCO2 operates and owns an approximate 65% gross working interest in the Claytonville oil field unit and operates and owns an approximate 99% working interest in the Katz Strawn unit, both located in the Permian Basin area of West Texas. The Claytonville unit is located approximately 30 miles east of the SACROC unit, in Fisher County, Texas. The unit produced approximately 200 gross barrels of oil per day during 2011 (100 net barrels to KMCO2! per day)! . During 2011, the Katz Strawn unit produced approximately 500 barrels of oil per day (400 net barrels to KMCO2 per day). In 2011, the average purchased carbon dioxide injection rate at the Katz Strawn unit was 46 million cubic feet per day.

KMCO2 operates and owns an approximate 22% working interest plus an additional 28% net profits interest in the Snyder gasoline plant. KMCO2 also operates and owns a 51% ownership interest in the Diamond M gas plant and a 100% ownership interest in the North Snyder plant, all of which are located in the Permian Basin of West Texas. The Snyder gasoline plant processes natural gas produced from the SACROC unit and neighboring carbon dioxide projects, specifically the Sharon Ridge and Cogdell units, all of which are located in the Permian Basin area of West Texas. The Diamond M and the North Snyder plants contract with the Snyder plant to process natural gas. Production of natural gas liquids at the Snyder gasoline plant during 2011 averaged approximately 16,600 gross barrels per day (8,300 net barrels to KMCO2 per day excluding the value associated to KMCO2�� 28% net profits interest).

KMCO2 owns approximately 45% of, and operates, the McElmo Dome unit in Colorado, which contains more than 6.6 trillion cubic feet of recoverable carbon dioxide. It also owns approximately 87% of, and operates, the Doe Canyon Deep unit in Colorado, which contains more than 870 billion cubic feet of carbon dioxide. For both units combined, compression capacity exceeds 1.4 billion cubic feet per day of carbon dioxide and during 2011, the two units produced approximately 1.25 billion cubic feet per day of carbon dioxide. KMCO2 also owns approximately 11% of the Bravo Dome unit in New Mexico. The Bravo Dome unit contains more than 800 billion cubic feet of recoverable carbon dioxide and produced approximately 300 million cubic feet of carbon dioxide per day in 2011. As a result of KMP�� 50% ownership interest in Cortez Pipeline Company, it owns a 50% equity inter! est in an! d operates the approximate 500-mile Cortez pipeline. The pipeline carries carbon dioxide from the McElmo Dome and Doe Canyon source fields near Cortez, Colorado to the Denver City, Texas hub. The Cortez pipeline transports over 1.2 billion cubic feet of carbon dioxide per day. The tariffs charged by the Cortez pipeline are not regulated, but are based on a consent decree.

KMCO2 also owns a 13% undivided interest in the 218-mile, Bravo pipeline, which delivers carbon dioxide from the Bravo Dome source field in northeast New Mexico to the Denver City hub and has a capacity of more than 350 million cubic feet per day. Tariffs on the Bravo pipeline are not regulated. Occidental Petroleum (81%) and XTO Energy (6%) hold the remaining ownership interests in the Bravo pipeline. In addition, KMCO2 owns approximately 98% of the Canyon Reef Carriers pipeline and approximately 69% of the Pecos pipeline. The Canyon Reef Carriers pipeline extends 139 miles from McCamey, Texas, to the SACROC unit in the Permian Basin. The pipeline has a capacity of approximately 270 million cubic feet per day and makes deliveries to the SACROC, Sharon Ridge, Cogdell and Reinecke units. The Pecos pipeline is a 25-mile pipeline that runs from McCamey to Iraan, Texas. It has a capacity of approximately 120 million cubic feet per day and makes deliveries to the Yates unit. The tariffs charged on the Canyon Reef Carriers and Pecos pipelines are not regulated.

Terminals-KMP

The Terminals-KMP business segment includes the operations of KMP�� petroleum, chemical and other liquids terminal facilities (other than those included in the Products Pipelines-KMP business segment) and all of its coal, petroleum coke, fertilizer, steel, ores and other dry-bulk material services facilities, including all transload, engineering, conveying and other in-plant services. Combined, the segment is composed of approximately 115 owned or operated liquids and bulk terminal facilities and approximately 35 rail transloadin! g and mat! erials handling facilities. The terminals are located throughout the United States and in portions of Canada.

KMP�� liquids terminals operations primarily store refined petroleum products, petrochemicals, ethanol, industrial chemicals and vegetable oil products in aboveground storage tanks and transfer products to and from pipelines, vessels, tank trucks, tank barges, and tank railcars. Combined, KMP�� approximately 25 liquids terminals facilities possess liquids storage capacity of approximately 60.2 million barrels, and in 2011, these terminals handled approximately 616 million barrels of liquids products, including petroleum products, ethanol and chemicals. KMP�� bulk terminal operations primarily involve dry-bulk material handling services. KMP also provides conveyor manufacturing and installation, engineering and design services, and in-plant services covering material handling, conveying, maintenance and repair, truck-railcar-marine transloading, railcar switching and miscellaneous marine services. KMP owns or operates approximately 90 dry-bulk terminals in the United States and Canada, and combined, its dry-bulk and material transloading facilities handled approximately 100.6 million tons of coal, petroleum coke, fertilizers, steel, ores and other dry-bulk materials in 2011.

Kinder Morgan Canada-KMP

The Kinder Morgan Canada-KMP business segment includes the Trans Mountain pipeline system, KMP�� ownership of a one-third interest in the Express pipeline system, and the 25-mile Jet Fuel pipeline system. The Trans Mountain pipeline system originates at Edmonton, Alberta and transports crude oil and refined petroleum products to destinations in the interior and on the west coast of British Columbia. Trans Mountain�� pipeline is 715 miles in length. KMP also owns a connecting pipeline that delivers crude oil to refineries in the state of Washington. The capacity of the line at Edmonton ranges from 300,000 barrels per day when heavy crude represents 20% ! of the to! tal throughput (which is a historically normal heavy crude percentage), to 400,000 barrels per day with no heavy crude. Trans Mountain is the sole pipeline carrying crude oil and refined petroleum products from Alberta to the west coast.

In 2011, Trans Mountain delivered an average of 274,000 barrels per day. The crude oil and refined petroleum products transported through Trans Mountain�� pipeline system originates in Alberta and British Columbia. The refined and partially refined petroleum products transported to Kamloops, British Columbia and Vancouver originates from oil refineries located in Edmonton. Petroleum products delivered through Trans Mountain�� pipeline system are used in markets in British Columbia, Washington State and elsewhere offshore. Trans Mountain also operates a 5.3 mile spur line from its Sumas Pump Station to the United States.-Canada international border where it connects with KMP�� approximate 63-mile, 16-inch to 20-inch diameter Puget Sound pipeline system. The Puget Sound pipeline system in the state of Washington has a sustainable throughput capacity of approximately 135,000 barrels per day when heavy crude represents approximately 25% of throughput, and it connects to four refineries located in northwestern Washington State. The volumes of crude oil shipped to the state of Washington fluctuate in response to the price levels of Canadian crude oil in relation to crude oil produced in Alaska and other offshore sources.

NGPL PipeCo LLC

The Company owns a 20% interest in NGPL PipeCo LLC and account for its interest as an equity method investment. The Company continues to operate NGPL PipeCo LLC�� assets pursuant to an operations and reimbursement agreement effective through February 15, 2023. NGPL PipeCo LLC owns a interstate gas pipeline and storage system consisting primarily of two interconnected natural gas transmission pipelines terminating in the Chicago, Illinois metropolitan area. NGPL�� Amarillo Line originates in th! e West Te! xas and New Mexico producing areas and is comprised of approximately 4,400 miles of mainline and various small-diameter pipelines. Its other pipeline, the Gulf Coast Line, originates in the Gulf Coast areas of Texas and Louisiana and consists of approximately 4,100 miles of mainline and various small-diameter pipelines. These two main pipelines are connected at points in Texas and Oklahoma by NGPL�� approximately 800-mile Amarillo/Gulf Coast pipeline.

NGPL is a natural gas storage operator with approximately 600 billion cubic feet of total natural gas storage capacity, approximately 278 billion cubic feet of working gas capacity and over 4.3 billion cubic feet per day of peak deliverability from its storage facilities, which are located in supply areas and near the markets it serves. NGPL owns and operates 13 underground storage reservoirs in eight field locations in four states. These storage assets complement its pipeline facilities and allow it to optimize pipeline deliveries and meet peak delivery requirements in its principal markets.

Advisors' Opinion:
  • [By Roberto Pedone]

    One energy player that insiders are buying up a huge amount of stock in here is Kinder Morgan (KMI), which owns interests in an energy transportation and storage company. Insiders are buying this stock into modest strength, since shares are up 2.4% so far in 2013.

    Kinder Morgan has a market cap of $37.5 billion and an enterprise value of $71 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 37.94 and a forward price-to-earnings of 23.03. Its estimated growth rate for this year is 153.1%, and for next year it's pegged at 26.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.02 billion and its total debt is a whopping $35.60 billion. This stock currently sports a dividend yield of 4.2%.

    The CEO and chairman of the board just bought 500,000 shares, or about $17.86 million worth of stock, at $35.74 a share.

    From a technical perspective, KMI is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last two months, with shares moving lower from its July high of $40.03 a share to its recent low of $34.82 a share. During that downtrend, shares of KMI have been making mostly lower highs and lower lows, which is bearish technical price action.

    If you're bullish on KMI, then I would look for long-biased trades as long as this stock is trending above its 200-day at $36.97, and then once takes out some near-term overhead resistance levels at 50-day at $37.80 a share to more resistance at $38.29 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 4.91 million shares. If we get that move soon, then KMI will set up to re-test or possibly take out its next major overhead resistance levels at $40.03 to $41.06 a share.

  • [By Dividend Monk]

    Much like Kinder Morgan Inc. (KMI) and Energy Transfer Equity (ETE), Oneok Inc. is a publicly traded general partner of another publicly traded partnership (Oneok Partners LP), and the overall benefits are similar.

  • [By Arjun Sreekumar]

    Other leading midstream companies, such as Kinder Morgan Energy Partners (NYSE: KMI  ) , Plains All American (NYSE: PAA  ) , and Sunoco Logistics Partners ��now a part of Energy Transfer Partners (NYSE: ETP  ) ��are also working on boosting storage and distribution capacity along the Gulf Coast to handle the influx of crude oil. �

  • [By Tyler Crowe]

    These two companies, just like all exploration and production companies, will still be at the whim of commodity price risks. So swings in natural gas prices could eat into that profit. For the more risk-averse investor, these new LNG facilities will need to have gas brought to them, and the only feasible way to do that right now is natural gas. Look for companies that will be building out pipelines to these new facilities, as they will be able to get a decent chunk of the action without as much exposure to commodity prices. Natural gas pipeline giant Kinder Morgan (NYSE: KMI  ) will more than likely be reaping benefits from this action in the years to come.�

Top 5 Transportation Stocks To Watch Right Now: Snam SpA (SRG)

Snam SpA is an Italy-based company engaged in the management of natural gas services. The Company is diversified into four operating segments. The Transportation segment covers transportation-related gas services, including capacity management and transportation of the gas at the entry points of the gas network to the redelivery points. It owns transportation infrastructures of gas pipelines. The Regasification segment is focused on extraction activities of natural gas, its liquefaction for transport by ship and subsequent regasification. The Storage segment covers deposits, gas treatment plants, compression plants and the operational dispatching system. The Distribution segment engages gas distribution through local transportation networks from delivery points at the metering and reduction stations to the gas distribution network redelivery points at the end customers. Additionally, Snam SpA as the parent company, focuses on planning, management, coordination and control of the group. Advisors' Opinion:
  • [By Tom Stoukas]

    Snam SpA (SRG) dropped the most in almost a year as Eni SpA sold an 11.7 percent stake in the owner of Italy�� biggest natural-gas network. Wm Morrison Supermarkets Plc tumbled the most in more than 14 months. Experian Plc jumped to a record after the world�� largest credit-checking company raised its dividend and announced a share buyback.

Top 5 Transportation Stocks To Watch Right Now: 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.

Advisors' Opinion:
  • [By Aaron Levitt]

    While you can debate whether beaten-down natural gas producer Chesapeake (CHK) is a buy or just junk, its former MLP subsidiary Access Midstream Partners (ACMP) is very much in the ��uy, buy, buy!��camp.

  • [By Marc Bastow]

    Natural gas and gas liquids owner and operator Access Midstream Partners (ACMP) raised its quarterly distribution 23.5% to 55.5 cents per unit for its Common and Class C units, payable on Feb. 14 to unit holders of record as of Feb. 7.
    ACMP Dividend Yield: 3.96%

  • [By Robert Rapier]

    Access Midstream Partners (NYSE: ACMP) is the successor to Chesapeake Midstream, after it bought Chesapeake Energy’s (NYSE: CHK) midstream assets. At the same time Williams (NYSE: WMB) acquired a 50 percent stake in Access Midstream’s general partner from the master limited partnership’s private equity sponsor. ACMP is now one of the largest midstream companies in the US with gathering pipelines and facilities in the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica shales, and elsewhere in the Mid-Continent.