North Dakota has a flaring problem, and it's hurting the U.S. economy and the environment. A negative impact of soaring hydrocarbon production is the rapid increase in natural gas flaring in North Dakota. Oil and gas producers don't want to set valuable production ablaze, and neither does the general population, but without adequate midstream infrastructure in place there are no other options.

Currently ~30% of North Dakota's natural gas production is being flared, but by 2020, the state government wants to reduce that to just 10% of natural gas output. While legislative action is under way, Oneok Partners L.P. has already embarked on a comprehensive plan that will cut gas flaring substantially. 

Who wants more processing capacity?
By the end of 2014, Oneok Partners L.P. will have fully built out its Divide County Gathering System in the Bakken, which currently is operational. By expanding its gas gathering capacity, Oneok Partners L.P. will also be able to boost its natural gas processing capacity. Through the end of 2015, Oneok Partners L.P. wants to bring three new gas processing facilities online in the Bakken. 

Garden Creek II will come online in the third quarter of 2014, with the ability to process 100 MMcf/d (million cubic feet a day) of natural gas. Six months later, Garden Creek III is projected to come online, and it too will have 100 MMcf/d of gas processing capacity.

To top it off, the 200 MMcf/d Lonesome Creek plant will be completed in the fourth quarter of 2015. Combined, these three plants will add 400 MMcf/d of processing capacity to service natural gas production, on top of the 300 MMcf/d of capacity that Oneok Partners has added since April 2011.

For June, the EIA predicts Bakken natural gas production to come in at 1,262 MMcf/d. Flaring roughly a third of that means North Dakota is "letting" 380 MMcf/d of production go to waste, which soon will instead go to one of Oneok Partners' new plants. As North Dakota's production continues its meteoric rise, albeit at a slower pace, Oneok Partners' new investments should easily be running at full capacity by the time construction is completed. 

An E&P player on top of things
The expansion of Hess Corp's Tioga gas plant in North Dakota will aid Oneok Partners' fight to reduce gas flaring. At first the Tioga plant had 100 MMcf/d of natural gas processing capacity, which has been increased to 120 MMcf/d and will soon be ramped up to 250 MMcf/d. Through this expansion, Hess Corp is forecasting that its flaring will be reduced to 15%-20% of gas output from 25% before the plant reopened. This will allow more of Hess' output to be sold, boosting cash flow. 

To bring that down further, Hess Corp could increase Tioga's processing capacity to 300 MMcf/d. Since 2012, Hess has spent $1.5 billion building out oil and gas infrastructure in North Dakota, supporting its 17 rig drilling program that is developing its Bakken/Three-Forks position. For 2014, Hess Corp hopes to produce 80,000-90,000 boe/d out of the Bakken/Three-Forks play, which could possibly double to 150,000 boe/d by 2018 if guidance is met. While most of Hess' output from North Dakota is crude, it still is smart for Hess Corp to build gas processing capacity. By expanding the Tioga plant Hess has removed the regulatory uncertainty around its growth ambitions, painting a clear path of future value creation for shareholders. 

Foolish conclusion
Oneok Partners L.P. has been leading the pack in regards to building out the necessarily infrastructure to keep the Bakken boom alive. E&P players, like Hess Corp, that are planning ahead by undertaking midstream projects now will be greatly rewarded in the future by ensuring that future production will be able to be sold. Plus, the reduced regulatory uncertainty regarding new gas flaring rules will work heavily in Hess Corp's favor.

When natural gas prices were low, it was hard to justify expanding gas gathering and processing capacity. But as prices rebounded and legislative action was taken up on the state level, those like Oneok Partners that saw through the rough patch are prepared to profit. As natural gas production keeps rising from the Bakken/Three-Forks formation, those who planned ahead like Oneok have the midstream operations in place to rake in much larger streams of distributable cash flow. Not only will Oneok Partners benefit, but so will the environment due to the expected decrease in gas flaring over the next few years. 

Most people who enroll in Medicare have their required premiums withheld from their Social Security benefits. But if you don't get Social Security, will Medicare force you to do so in order to pay for premiums?

In the latest installment of our Social Security Q&A video series, Dan Caplinger, The Motley Fool's director of investment planning, takes a question from Janet, who wants to wait until full retirement age of 66 to get Social Security but worries that applying for Medicare at age 65 might not make that possible. Dan reassures his viewers that Medicare and Social Security are unrelated in the sense that you don't have to take one to get the other. As Dan discovers, all you have to do is to send a separate check or have your premiums taken from a bank account through an electronic funds transfer. That way, you can make the smart decision about your Social Security benefits without worrying about the impact on Medicare.

Many people who give charitable donations to nonprofits are uncertain that their giving is effective -- that it makes a difference, that the nonprofits are high-performing, and that significant impacts are being achieved. You can do research on a nonprofit's website, and rating sites like Charity Navigator and Guide Star, which provide background information on nonprofits.

However, if you're passionate about a nonprofit's cause, you can offer it more than a monetary contribution -- and learn how your contributions are being used. Here is the best way to assess nonprofits, and multiply the impact of your giving: Engage.

Source: Flickr user, Michael Cardus

• Volunteer: Help to do the work of the organization, whether it is community service, joining a committee or board, or helping in its administrative office. You will meet staff people and other volunteers, see how they work, and better understand how it is supporting its beneficiaries.

• Attend events: Most nonprofits put on events for fundraising, advocacy, or media purposes. You will meet other supporters, and get a sense of their constituent network, while providing some help. In the process, you might also make some good contacts for yourself, and even have some fun.

• Participate in social media: Sign up for a nonprofit's electronic newsletter, Twitter feed, or blog RSS feed. You'll learn more about the organization and its efforts. And using these outlets, you can easily share with others, spreading its message and building its support community. Better yet, share your story publicly, about why you support this organization's mission. Nothing is as influential as a sincere, personal recommendation.

• Help raise funds: This prospect can send chills through some people; others participate with gusto. Studies show that about 30% of donors actively fundraise for organizations they care about. Nonprofits provide help, and make it as easy as possible for you, so please consider it when they ask. You will benefit from knowing that you belong to a community of contributors, are helping it to grow, and the people you reach out to may be impressed by your generosity.

Nobody has time or money to waste, so skillful and sustainable giving takes some planning and research. A good first step is to identify a few focus areas of concern, and then do some field research into nonprofits working in those areas by making an initial donation, learning more about an organization on the Web, and finding an opportunity to engage in person.

Do you hate Bank of America ? How its actual customers feel about it will stun you.

Since the financial crisis, Bank of America has been the object -- and at times rightly so -- of much criticism.

So, how do the people who actually park their money with Bank of America feel about it?

The answer: Good. And it's only getting better.

Things are looking up for Bank of America.

The rebound
Every year, Satmetrix releases its Net Promoter Score, which surveys more than 23,000 Americans to see what products and services they would recommend to someone else. It asks questions about brands and products across 22 different industries and spans more than 219 brands.

The way it calculates the score is relatively simple, as it takes the percent of those who are deemed "promoters" -- ranking the brand and product a 9 or 10 on the 10 point scale -- and subtracts out those who are "detractors," who rank it six or below.

And while Bank of America didn't lead the banks, 2014 marked an incredible turnaround. In the study's own words:

Bank of America's surge in loyalty continued for the second year in a row, with a 20 point increase in NPS in 2014, following a 25 point increase in 2013. This dramatic jump in loyalty has brought the bank up from worst performer in 2012 to sixth place out of the 14 banks included.

After the banking sector as a whole finally rose in 2013, after years of troubles, the study noted:

Bank of America led the rebound charge, with unprecedented increases of 34 and 25 points for their credit cards and banking ratings respectively. The jolt in Bank of America's banking NPS provides a dramatic halt to a six-year downward trend in loyalty.

Brighter days are  ahead for Bank of America. Source: Flickr / Mike Mozart.

The encouraging signs
Look back again at the words used to describe how the opinion of the actual customers at Bank of America has changed over the last two years: Unprecedented increases. Surge. Dramatic jump. Jolt.

Through its Project New BAC, Bank of America said it's "focusing all of its resources on serving individuals, companies, and institutional investors." While one of the key parts of the project was reducing the massive costs required to run the bank, it's important to know it was seeking to better serve its customers as well.

In a recent interview with Forbes magazine, Bank of America's CEO, Brian Moynihan, said:

We've fined-tuned the business around basic principles: Who are our customers? What do they need from us? And what can we be good at?

In 2014, we've learned that its improvements in J.D Power's customer satisfaction index outpaced all the other banks. Over the last two years, Bank of America also noted the number of satisfied customers has risen by more than 10%. Knowing it has 92 million accounts, a gain of 10% means millions more happy.

All of that is to say, Brian Moynihan and the employees at Bank of America aren't simply talking about the bank becoming new, but providing evidence after evidence that the change is actually happening.

What to take away from it
I've said it before, but I have to wonder if Bank of America and Brian Moynihan are clinging to the Warren Buffett wisdom -- remember his investment in B of A is worth nearly $11 billion -- that says, "if we are delighting customers, eliminating unnecessary costs and improving our products and services, we gain strength."

More and more each day we learn Bank of America isn't just eliminating "unnecessary costs," but it's also "delighting customers." Troubles once plagued it, but it's "gaining strength," and the new Bank of America is clearly here.

With Apple stock approaching a split-adjusted $100 per share, Cook & Co. may have finally convinced the Street that the stock is worthy of rebounding to the all-time high it reached in 2012. Undoubtedly, part of resurgence of Apple stock has to do with Apple CEO Tim Cook's promises of products in new categories. But can Apple really live up to the market's higher standards for the company?

AAPL data by YCharts

The ever-active Apple rumor mill has pretty much agreed on at least one product in a new category that Apple likely has in its pipeline: the so-called iWatch. Recent speculation asserts the company plans to launch the device in October. How will the device perform? Incredibly well, according to some sources.

Three different sources are predicting Apple will sell more iWatch devices in the first year of availability than the iPad did during its first year.

Morgan Stanley
Longtime Morgan Stanley analyst Katy Huberty has huge expectations for the iWatch.

In a February note to investors, Huberty said she believes the iWatch can boost Apple's top line by as much as $17.5 billion in the first year. That would be a 10% incremental gain over Apple's current top line. The figure would easily outperform the $12 billion the iPad contributed to Apple's top line during its first year of sales, making it Apple's most successful first-year product sales for a new category ever.

Her bullish outlook for the iWatch was based primarily on Apple's enormous guidance for capital expenditures in fiscal 2014, which came in at $10.45 billion. The figure is up 32% from Apple's 2013 capital expenditures.

"We believe this is an indication that Apple is investing in new product categories as single-digit iPhone and iPad growth no longer demands significant increases in capital expenditures," Huberty wrote.

UBS
In terms of units sold, UBS analyst Steven Milunovich is also bullish on the iWatch. He's estimating 21 million units sold in fiscal 2015. That compares to 19.5 million iPad's sold during its first year.

In terms of revenue, however, UBS predicts the iWatch will underperform the iPad. With an average selling price of $300, 21 million units would only boost Apple's current level of revenue by $6.5 billion. 

"We expect iWatch sales to roughly track iPad unit sales -- similar penetration rates would mean higher sales. iWatch might do better because the customer base is larger than when iPad launched and the ASP might be less," Milunovich said (via AppleInsider). But his prediction has baked in some conservatism: "On the other hand, iWatch is the first product to be worn, which might not appeal to all users."

Apple?
But the most bullish source of all on the outlook for the iWatch may be Apple itself. As I detailed recently, a report last week from Nikkei Asian Review said sources familiar with Apple's plans assert the tech giant is planning for "monthly commercial output" of about three to five million units per month. Assuming an average selling price of $300, this figure could mean Apple expects slightly higher incremental sales from the device than Huberty's prediction.

Recent confidence from Apple's Internet Software and Services chief Eddy Cue seems to echo this rosy outlook for the iWatch.

Apple "has the best product pipeline I've seen in my 25 years at Apple," Cue said at the Code Conference earlier this month.

Finally, if Apple's previous blockbuster launches into new categories are any indication of how the iWatch will play out, Apple investors may be in for a pleasing fiscal 2015.

In the ongoing competition between Boeing and Airbus Group , Middle Eastern carriers like Emirates, Qatar Airways, and Etihad are becoming prized customers. Due to their rapid growth and a shared business strategy of routing lots of traffic through a single hub, these carriers have became big buyers of large widebodies -- the priciest planes sold by Boeing and Airbus.

As the largest of this trio by a wide margin, Emirates is a particularly important customer for Boeing and Airbus. Last week, it dealt Airbus a big blow by canceling its entire order of 70 Airbus A350s. This order cancellation means that the Boeing 777 will be the centerpiece of Emirates' fleet for the foreseeable future.

Wrong plane for the mission
Emirates did not put much blame on Airbus for its order cancellation. The company simply stated that the change came out of a review of its "fleet requirements". However, Emirates CEO Tim Clark has never been a big fan of the A350, the all-new Airbus widebody that is supposed to go toe-to-toe with Boeing's 787 Dreamliner and 777X.

Emirates CEO Tim Clark has been critical of Airbus' A350. Photo: Airbus Group

In fact, in late 2012, Clark criticized Airbus for delivering the A350 "late and overweight". The best he could say about it was that Airbus' A380 superjumbo was also late and overweight, but eventually managed to meet and even exceed its performance targets.

More importantly, Emirates is moving toward larger and larger aircraft in its fleet as a way to grow, because its hub in Dubai has limited capacity for additional flights. The A350-900 is roughly comparable in size to the smallest version of the current-generation Boeing 777, but that represents only a small portion of Emirates' fleet.

Meanwhile, the larger A350-1000 will still be significantly smaller than the biggest version of Boeing's upcoming 777X. For Emirates -- which usually has no trouble filling seats due to the number of connections it offers in Dubai -- the larger aircraft makes more sense.

Indeed, Emirates ordered a stunning 150 777X planes last fall, and obtained purchase rights for another 50. Of the three widebodies entering service during this decade (Boeing's 787 and 777X, and Airbus' A350), Emirates now has orders only for the 777X.

Airbus will be fine
Even after canceling all of its A350 orders, Emirates remains a major customer for Airbus due to its interest in the A380 superjumbo. In fact, Emirates is nearly singlehandedly keeping the A380 program afloat. Emirates has cumulatively ordered 140 A380s, representing 43% of the A380s ordered worldwide.

Emirates remains by far the largest customer for Airbus' A380 superjumbo jet. Photo: Emirates

The A380 fits into Emirates' strategy in the same way as the 777X -- it's the biggest plane of its type and therefore provides low unit costs while using airport resources efficiently. Emirates has also been a big advocate for re-engining the A380 to reduce fuel consumption. If Airbus eventually approves an "A380neo" project, Emirates would probably place a sizable order.

Airbus also doesn't have to worry too much about filling Emirates' A350 delivery slots. Since Emirates wasn't scheduled to receive the A350 until near the end of the decade, Airbus has plenty of time to resell those aircraft. Furthermore, there is strong demand for fuel-efficient widebodies today, ensuring that Boeing and Airbus will be able to sell every 787/777X/A350 they can make in the next decade.

This is still a big win for Boeing
In the very long-run, Emirates' decision to drop the A350 from its fleet plan is great news for Boeing. Emirates likes to refresh its fleet frequently, and with this move it appears to be standardizing around Boeing's 777/777X and Airbus' A380.

If that's the case, Boeing is likely to get significantly more orders over time than Airbus (and today about 70% of Emirates' order backlog is with Boeing). Not every market can handle an aircraft the size of the A380. Moreover, the 777-9X is likely to deliver lower unit costs than the A380 because it has only two engines, making it a more profitable aircraft for most routes.

Emirates could order more Boeing 777X planes to replace the A350s it canceled. Photo: Boeing

If Emirates continues growing and maintains its policy of frequently updating its fleet, Boeing could gain even more orders from Emirates for the 777X than the 150 it has confirmed. That's important because it is still unclear how large demand for the 777X will be.

Boeing plans to increase Dreamliner production to a rate of 14/month by the end of the decade. This record production rate (for a wide-body) is supported by Boeing's introduction of the 787-10, which is itself a potential 777-200 replacement. If Boeing can create enough demand for the 777X to build 100 /year (in line with the current 777 production rate) despite cannibalizing sales with the 787-10, its profitability will surge by 2020.

Foolish bottom line
Airbus isn't too worried about Emirates' recent decision to cancel its order for the new A350 aircraft that is scheduled to enter service later this year. Indeed, Airbus should have no trouble selling Emirates' delivery spots to other customers.

However, Emirates' apparent vote in favor of the 777X opens up the possibility that Boeing will be able to operate two high-volume widebody programs simultaneously. Considering the solid profit margins typically available on these planes, this bodes well for Boeing's long-term earnings power.

This week, we answer the big questions from the annual E3 gaming and entertainment expo in Los Angeles. Will Sony's new $99 PlayStation TV be a catalyst for the stock? Will the new "Master Chief" edition of Halo be enough to satisfy gamers itching for a new version of Microsoft's signature franchise?

And what about Nintendo ? Amid disappointing sales for the Wii U, the gaming giant is preparing to release a number of big titles in 2015 while giving gamers more control of their experience. Is now the time to buy the stock?

Finally, we shift from the floor of E3 to the back lot of Walt Disney's Marvel Studios. Can Peyton Reed fill Edgar Wright's shoes directing Marvel's Ant-Man? Does landing Vincent D'Onofrio to play Kingpin in Daredevil mean the studio is back on track?

Analysts Nathan Alderman and Tim Beyers have these stories and more in this week's episode of 1-Up on Wall Street. Click the video to watch now, and then be sure to follow us on Twitter for more segments and regular geek news updates!

The U.S. Environmental Protection Agency (EPA) just proposed new rules for the utility industry. Despite players like Xcel Energy working hard to improve their carbon footprint, industry outsiders like Google may actually benefit from the EPA mandate to trim carbon dioxide emissions by 30% by 2030.

Xcel Energy is blowing in the wind
In 2005, roughly 80% of Xcel Energy's power came from carbon-based fuels (coal and natural gas). That's important, because 2005 is the reference date for the EPA's reduction plan. Last year, coal and gas made up about 70% of Xcel's power. Wind farms have picked up the difference.

Wind is a carbon-free power source, showing that Xcel is already well on its way to satisfying the EPA's demands. But it isn't done yet; by 2020 Xcel plans to have carbon fuels down to just 60% of the pie. Wind, meanwhile, will have increased from 3% in 2005 to 22% in 2020. Xcel believes this wind power shift will allow it to reduce CO2 emissions by 30%, meeting the EPA target. 

That said, in 2020 Xcel will still be heavily reliant on coal (43% of its power) and natural gas (18%). So while Xcel is clearly being proactive on the carbon front, it is also facing the reality that it needs reliable base-load power, and carbon-heavy fuels are a cheap and reliable option. This is going to be a difficult issue for the power industry to overcome.

(Source: Leaflet, via Wikimedia Commons)

Google on the demand!
That's where Google comes in. This technology juggernaut is known for taking on challenges well outside of its search and video strongholds. For example, its driverless cars have been making headlines, and likely scaring a few auto execs, recently.

The common theme here is that Google is using its technology know-how to improve everyday life in new ways. That's why power could be the next big thing for Google. For starters, it's investing heavily in renewable power. As an example, it was a key backer of the giant Ivanpah solar installation in California.

That's a big part of the company's commitment to the environment and tags along with Xcel Energy's wind power theme. However, Google is also working hard to control its consumption of power. Its data centers, for example, use 50% less power than the average. And its offices are no different, with Google highlighting that it uses "sophisticated building control technologies to ensure systems are on only when we need them."

That's the demand side of the energy equation, and Google is ready to bring some of its "sophisticated" control systems to your home. Early this year it agreed to pay $3.2 billion for Nest Labs. That company makes a smart thermostat. Thermostats may not sound exciting, but they are an important piece of the carbon puzzle.

Plenty of options
The EPA plans to give states broad leeway in how they reduce their carbon footprint. That includes on the demand side, with customers upgrading their homes to use less power. Google's Nest investment will allow it to ride that wave. Moreover, it will give Google a key seat at the table with utilities like Xcel.

(Source: grantsewell, via Wikimedia Commons)

Xcel Energy is facing relatively large expenses in its efforts to reduce its carbon footprint, with plans to spend nearly $15 billion over the next five years. To give you an idea of the magnitude of that expense, Xcel Energy's market cap is just over $15 billion.

Google's revenues, meanwhile, topped $16.8 billion last year, and its net income was $3.3 billion. Google has more than enough firepower to back its Nest push. Better yet, smart thermostats will create massive amounts of data that Google can parse—something it does exceptionally well.

Advertising is still the big driver at Google, but products like Nest and the driverless car that help the tech giant invade aging but vital industries show that companies like Xcel have more to fear than just government regulations. And this incursion comes at a time when Xcel Energy and other utilities face big bills to reduce their carbon dioxide emissions.

The gap between the S&P 500's best and worst performing stocks in any given week is typically large, and the past five days haven't been an exception, as Family Dollar Stores was up by 10% while Delta Air Lines was off by more than 7%.

Why Family Dollar Stores soared
In the case of Family Dollar, the market was responding to news that billionaire activist investor Carl Icahn has taken a 9% position in the discount retail chain.

As The Wall Street Journal wryly observed, "Carl Icahn has probably purchased only one thing at Family Dollar: its stock."

Perhaps more surprising than Icahn's interest in Family Dollar is that he's only one of many high-profile investors to recently stake claims in it. Together with hedge fund manager John Paulson and "takeover artist" Nelson Peltz, the three own almost a quarter of the company's outstanding shares.

The rationale appears to be twofold. In the first case, it seems to reflect an unfortunate pessimism in the ongoing economic recovery -- and particularly among the patrons of deep-discount retailers.

In short, the slower the recovery, the better it is for companies like Family Dollar.

Additionally, as my colleague Dan Caplinger pointed out on Saturday, Icahn has his sights set on consolidation within the industry. "If successful," says Dan, "making Family Dollar a merger candidate could be the key to investors' long-term success."

Why Delta Air Lines plummeted
On the other end of the spectrum, Delta Air Lines was subject to a very different type of reaction in the market.

After more than doubling over the past year, shares in the transportation giant took a sharp downward turn on Wednesday after fears that an escalating conflict in Iraq could cause oil prices to increase.

Suffice it to say, given that oil prices are one of the biggest expenses in the airline industry, the net result would be an almost certain decline in profitability for companies like Delta Air Lines, United Continental, and Southwest Airlines, among others.

Is this bound to happen? Not necessarily, as much of it depends on the positions of Delta's hedges. If it's positioned for a sharp increase in energy costs, it could even benefit relative to peers -- though, investors certainly shouldn't bet on this being the case.

Moreover, if the conflict in Iraq does weigh on oil prices, as I discussed yesterday, it's likely to be only temporary. The net result, as my colleague Adam Levine-Weinberg wrote last week, is that "the sudden weakness in airline stock prices could represent a good buying opportunity."

I, for one, would exercise more caution when considering whether to invest in this sector -- in fact, I wouldn't touch airline stocks with a 10-foot pole. But that being said, if a company like Delta Air Lines is on your watchlist, then this may be the opportunity you've been waiting for.

The first quarter brought good news for Juniper Networks , including strong performance in two of its three main segments and a favorable announcement from customer AT&T . Still, the company continues to see intense competition in its security business from the likes of F5 Networks  and some uncertainty due to a restructuring program. What's going on behind the scenes at Juniper?

Switching and routing
The big surprise for the quarter was the continued strong performance of Juniper's switching portfolio, which earned $192 million, a 46% increase, year-over-year. The performance was driven by demand in both enterprise and service provider clients, and across both lines of Juniper's switching products.

Management did admit that due to to the large size of the clients for switching, income can be lumpy, and the current level of performance is probably not sustainable. Nonetheless, this quarter's results and the record switching revenue in the preceding quarter justify the company's continued development of a segment that activist investors had recently called an "unsuccessful extension" of Juniper's core business.

As for the core business, routing, no news is good news. The segment continues to do well, with stable 7% year-over-year growth and revenue of $550 million. This was driven primarily by strong demand for Juniper's edge routers, which management claims are one of the primary areas of investment in routing at the moment.

Still committed to security
Security, Juniper's third main segment along with routing and switching, isn't doing as well, with total security product revenue down 2%, year-over-year. While this is an improvement over the 16% and 31% contractions in the preceding quarters, Juniper seems to have its work cut out against such competitors as F5 Networks, which has been winning share in the network security market and views security as its biggest growth opportunity.

Activist investors targeted the security segment as a possible market that Juniper should exit in order to improve its profitability. However, on the most recent conference call, management reiterated that it remains fully committed to the security business, and that security is of "paramount importance" to Juniper's strategy of being a cloud network provider. Additionally, thanks to strong bookings, security might return to growth in 2014.

Integrated operating plan progress
Since Shaygan Kheradpir took over as CEO in January, Juniper has embarked on a restructuring program it calls the integrated operating plan, or IOP. The main goals of the IOP are cost reductions, a more focused product portfolio, and greater cash returns for investors.

In the first quarter, Juniper has been moving forward with this plan. It reduced headcount by 6% and started shedding some real estate. It also closed down several research projects, such as the application delivery controller, that had not yet started earning revenue. In all, these measures are expected to reduce annual costs by $160 million in the next year.

Juniper also initiated a $1.2 billion accelerated share repurchase program, $900 million of which was used in the first quarter. This is part of Juniper's commitment to return at least $3 billion to investors over the next three years, including a $0.10 per share dividend that the company will start paying out in the third quarter.

Domain 2.0
In April, AT&T announced that Juniper has been included as a vendor in its "user-defined network cloud" program. Also known as Domain 2.0, this is an initiative to modernize AT&T's network by using new technologies such as software-defined networking and by working with a wider range of suppliers, including start-ups.

Juniper's management hailed this as a big achievement for the company. AT&T has been a major customer for Juniper, and the Domain 2.0 announcement seems to bring the two companies closer together. Still, considering that one of the major goals of the Domain 2.0 program is cost cutting by having more suppliers compete for AT&T's business, it remains to be seen whether this will really benefit Juniper or not.

In conclusion
Juniper has continued to post good results in its routing and switching segments. Security is still not growing, but there are signs that the business might be getting back on track. Finally, shareholders should be happy with the progress on Juniper's restructuring plan, as the company has moved to reduce costs over the next year and return significant cash to investors.

America's Navstar GPS satellites. Soon to be superfluous? Photo: US Air Force.

Technically speaking, the Pentagon's top-secret weapons lab, "DARPA," stands for the Defense Advanced Research Projects Agency. You could just call it the Defense Department's office of "Wow!"

Since its inception in 1958, DARPA has played a role in the creation of such technological wonders as the Internet (once known as ARPAnet), humanoid and animal-form robots, unmanned aerial vehicles of all shapes and sizes, and even Global Positioning Satellites, or GPS. DARPA's latest project -- "C-SCAN" -- has the potential to improve and perhaps even replace GPS.

10 times more interesting than C-SPAN
Teaming up with Northrop Grumman as its primary contractor, DARPA is working today to integrate micro-electro-mechanical systems, called MEMS, and atomic inertial guidance technologies, forming a new "single inertial measurement unit" in a project designated the "Chip-Scale Combinatorial Atomic Navigator" -- C-SCAN.

Translated into plain English, what C-SCAN aims to accomplish is to create a chip that performs the functions today served by orbiting GPS satellites. The chip would constantly "know" where it is in space-time, and would have this knowledge without having to ping a satellite (and maintain line-of-sight communication with a satellite) to do it.

What C-SCAN might look like when complete. Source: DARPA.

Why do it?
If you've ever tried to access the GPS system on your car while parked in a garage, and been unable to do so while the device is "searching for satellites," you'll understand the usefulness of a device that can perform like GPS, without need for actual GPS. Elimination of the need to rely on satellites to determine one's location would similarly enable the use of "GPS-like" technology for getting directions within buildings and underground -- for example, in subway systems.

So C-SCAN has obvious civilian applications. Of course, DARPA's primary aim is enhancing the functioning of the nation's military. And C-SCAN would be invaluable for that purpose.

Why we need to do it
One of the primary vulnerabilities in today's hi-tech, ultra-accurate weapons systems, you see, is their dependence upon GPS signals to guide them to their destinations. American "smart bombs" and guided missiles all depend greatly on GPS to know where they are, and to get where they're going. American dominance in drone technology, similarly, depends on GPS.

Problem is, while we know this is a problem, the "bad guys" know it, too -- and can sometimes hack GPS signals so as to confuse, and even hijack, American weapons systems. Case in point: in 2011, Iran boasted that it had commandeered and captured a Lockheed Martin RQ-170 Sentinel -- one of our most advanced "stealth" surveillance drones -- in flight over Iranian territory. The Iranians didn't have to shoot the drone down, either. Instead, they forced it to land in Iran, and captured it intact. According to Iranian engineers, this was accomplished by first jamming communications with the Sentinel's remote controllers, then "spoofing" GPS signals, tricking the drone into landing at what it thought was its home base in Afghanistan -- but what was actually an Iranian airfield.

Drones equipped with a future C-SCAN technology would be less likely to fall victim to such a trap. While their communications might be cut off, forcing them to default to autopilot and return to base, they'd at least return to the right base, because an internal chip would tell them how to get there.

The future is now
Current weapons systems often include internal gyroscopes, granted, that perform some of the functions that C-SCAN aims to perfect. But as DARPA observes, present-day gyroscopes are "bulky" equipment, "expensive," and don't perform with the kind of accuracy that DARPA wants to see.

The objective, therefore, is to explore cutting edge technologies to put gyroscope-like functionality on a chip, resulting in "small size, low power consumption, high resolution of motion detection and a fast start up time" -- all loaded onto one small microchip.

What it means to investors
If DARPA succeeds with C-SCAN, it will have obvious benefits for the nation's bombs, missiles, and drones -- but it would also benefit Northrop Grumman as DARPA's primary collaborator on the project. Last quarter, Northrop saw its revenues decline 4% as the U.S. government increasingly tightened its belt on defense spending. Market researcher IBISWorld recently released a report projecting that total U.S. government spending on defense would shrink 2% annually, year after year, over the next five years. But by helping the U.S. government solve one of its most vexing defense problems, Northrop could help secure as big a piece as available, of the shrinking defense pie.

Indeed, it might help to grow that pie. Microchip-based guidance could be the solution the military is seeking to an oft-discussed problem with the nation's newest generation of Mach 7 railguns, whose great range, speed, power -- and cheapness -- make them an attractive weapons system... if we can only figure a way to guide their projectiles accurately.

Miniaturized, GPS-like guidance systems-without-satellites would be even more crucial for introducing this technology into civilian applications. While you could probably attach a gyroscope to your smartphone, you might have trouble getting it to fit in your pocket. But put the gyroscope on a chip?

Voila! Instant GPS functionality, indoors and out.

That's a future worth buying into, for defense investors, and tech investors alike.

General Electric hasn't been a simple business since Thomas Edison founded the conglomerate's first ancestor. A hundred years ago, Edison Electric had already adopted its new name, and had branched out from making electric light bulbs to locomotives, ceramic stove tops, power generators, X-ray machines, and plastics.

Source: GE.

Nothing much has changed in the last century. GE is still around and it still runs one of the largest, most complex industrial conglomerates on the planet. You might expect GE to compete with other heavy manufacturing groups, such as Honeywell International or United Technologies, and you'd be right -- but that's far from GE's whole story. The company also faces off against more surprising rivals, like National Oilwell Varco and Citigroup .

No joke. This old company really gets around. So, how does today's General Electric make money? Let's take a deeper look at GE's sprawling operations.

Source data: GE 10K filing.

Starting with a world map, General Electric is very much a global business.

The U.S. market is key, of course, representing 47% of GE's sales in 2013. But that still leaves 53% coming from abroad.

And the geographic mix is changing. Sales have remained stable in the Americas over the last two years, while European revenues fell by 10%. Making up for the Old World drop, GE expanded sales by 10% in Asia and 13% in the Middle East and Africa segment.

In other words, GE's meat and potatoes are still served at home, but the company is very connected to the world's fastest-growing economies.

That's what GE looks like today.

30% of the conglomerates sales come from GE Capital, the financial arm. This is why some compare GE to global banks like Citigroup. The company is selling off its financial services for consumers to refocus on business-class banking operations. This includes fleet management services, commercial loans, and commercial leases.

General Electric and GE Capital used to sport a AAA Standard & Poor's credit rating, which is the highest possible credit quality. After the 2008-2009 financial crash, these ratings have dropped to AA+ -- still the second highest rating in S&P's system.

GE Capital exited 2013 with $380 billion in Ending Net Investment, which is GE Capital's closest thing to the Basel III assets reported by other large banks. That's down from $419 billion in 2012 and $445 billion in 2011, and GE has its sights set on reaching an ENI as low as $300 billion.

This company wants to become less of a megabank, and more of an industrial powerhouse. In 2011, GE held about 35% as much invested capital as Citigroup -- not bad for a supposed industrial complex! Today, the GE-to-Citigroup capital ratio is down to 32%.

Digging deeper into the industrial side of the house, you'll find four very large sub-divisions and three smaller operations. But even here, the mix is changing quickly.

GE has grown its energy management sales by 18% in the last two years, while oil and gas services jumped 25% higher. In a series of energy-focused acquisitions, GE is indeed becoming comparable to National Oilwell and other giants of petroleum drilling and transport equipment.

Treating GE's energy management and oil segments as a unified business, its $25 billion in 2013 revenues would have surpassed National Oilwell's total sales. GE's energy equipment and services would still rank behind the absolute top layer of this industry, but we're still looking at one of the top names in oil drilling supplies. Again, not bad for a diversified conglomerate.

And GE is still working on its ideal business mix, here. If the proposed $13.5 billion buyout of French rival Alstom's power plant and electrical grid operations passes regulatory muster, the deal would instantly boost GE's power and water sales by 80%. This would go a long way toward boosting industrial sales past 75% of total revenue, which is another of GE's stated long-term goals.

Let's finish up with GE's segment sales over time. This is how the company has rebalanced its operating portfolio in the last five years. The blue wedge that disappeared in 2011 mainly consists of the NBC Universal media division, which was sold to Comcast for $30 billion.

That's a high-level view of GE's complex operations. Long story short:

• GE rakes in about half of its sales from the Americas and the rest from distant shores.

• Financial services are huge but destined to shrink.

• You should expect the industrial mix to change often.

Spirit Airlines stock has soared more than 90% over the past year. Source: Benjamin Beyers for The Motley Fool.

In the 1980s, a budget carrier known as PEOPLExpress changed the pricing model for airline tickets. Now a management group is resuscitating the brand while introducing some twists that Spirit Airlines investors might find familiar.

Looking back, and finding the future
The old PEOPLExpress opened for business in 1981 and flew a wide range of national and international routes. In 1985 alone, the carrier flew 17.6 billion revenue passenger kilometers, according to data supplied Air Transport World.

Early innovations included charging for bags, soda, and snacks in-flight -- unfortunate take-backs that have since become the standard among major and discount carriers alike, though Spirit has taken the practice to new, but arguably necessary, lows.

A few people at a time
By 1987, PEOPLExpress had taken on too much debt in expansion, forcing a sell-off to then-Continental Airlines and parent Texas Air. This PEOPLExpress isn't as interested in serving major hubs. Instead, the airline will target underserved markets when its first 737-400s take off on June 30.

The new PEOPLExpress takes off on June 30. Credit: PEOPLExpress.

Initial flights will originate at Newport News/Williamsburg International Airport and carry passengers to Boston, Newark, NJ, and Pittsburgh. Additional flights to Atlanta, New Orleans, and St. Petersburg and West Palm Beach, Fla. will launch between July 15 and Aug. 28. Competition is likely to be limited to Delta's regional flight to Atlanta, which should make it easier for PEOPLExpress to gain traction and test its flexible pricing model.

Smells like more Spirit
"Air travel had become an unpleasant, difficult and costly experience for many travelers -- and in response to that need, the new PEOPLExpress was born with a name that left an indelible mark on aviation history," longtime airline executive Jeff Erickson said in a press release announcing the carrier.

Just as Spirit offers customers a variety of upgrades from an ultra-low base fare, PEOPLExpress pitches a customized flying experience where passengers can choose the amenities they need. Or, if they wish, just buy the cheapest available seat.

Fares begin at $76 each way. Cabins include coach and "Living Large" seats that offer extra room and run $59 per segment. Exit row seats cost $25 extra, and pre-assigned seats another $15. Fees add up quickly if you want to fly comfortably, or if you want to store anything. Overhead space is $25 per bag. Checked bags cost $20 for the first and $25 for the second.

Sound over the top? Maybe it is, but I can hardly blame PEOPLExpress for pricing this way. According to S&P Capital IQ, Spirit Airlines has grown revenue more than 20% in each of the last two years and the trailing 12 months, all while enjoying a better-than-30% gross margin and 20%-plus returns on capital. An enviable (and uncommon) record that PEOPLExpress, in building on its history, will seek to duplicate.

For now, there's no way to invest in PEOPLExpress. But if the airline catches on, it'll be a good sign for Spirit and others who've embraced the a la carte pricing model. For investors, that makes this a story worth watching.

China has a virtual monopoly on rare earth metals. These 17 chemical elements are key components in today's technology, including everything from LCD screens to batteries. However, environmental issues in China could open an opportunity for Molycorp to compete.

So rare that Ford's conserving
Rare earth metals and related products, such as the neodymium-iron-boron and samarium-cobalt alloys that Molycorp produces, are the driving force behind much of the technology we use every day; this includes the cell phone in your pocket and the batteries that power electric and hybrid cars. You'd think, then, that this would be a growing sector... but it's not.

For example, Molycorp's shares have fallen into the low single digits after running up to over $70 a share in 2011. The problem is China. This giant nation controls roughly 90% of the rare earth's market. On top of that, the World Trade Organization (WTO) says that the country isn't playing fair, using tariffs and quotas to limit exports and boost prices.

MCP data by YCharts

China's efforts to keep control of its rare earth metals has led at least one user to openly discuss conservation. Ford states, "The growing demand for rare earths has called into question future supply and material costs. They are also a concern due to the geographic concentration of supply and environmentally unsustainable mining practices." Those last two points speak, indirectly, to China.

Ford has good reason to be concerned. It just reported a year-over-year sales advance of 3% in May, with record monthly sales of the Ford Fusion, Ford Escape, and the Lincoln MKZ. The company's business is clearly coming back after the brutal 2007 to 2009 recession. Since more and more technology is appearing in autos, this means Ford is increasingly reliant on rare earth metals.

To help offset that risk, Ford has reduced the amount of dysprosium in "the electric machine permanent motor magnets used in our hybrid system" by around 50%. That's good from a cost standpoint, reducing the cost of its hybrid systems by 30%. Not only that, but the new system is also "50% lighter and 25 to 30% smaller than previous-generation hybrid batteries." That's a win-win.

China's problems
China claims that its tax and export efforts were put in place because the price of rare earth metals wasn't high enough to pay for the environmental impact of mining. The WTO rebuke doesn't change those problems. Illegal production and environmentally unfriendly mining practices are still prevalent. Now the country is said to be considering environmental certificates for exports and a value tax on producers.

(Source: CIA)

That's where Molycorp's opening may come from. China is openly trying to boost the price of rare earth metals to help solve some of its own environmental problems. Molycorp mines for rare earth metals in California. According to Molycorp, "Rare earth economics derive from production costs, and we will have one of the lowest cost producing plants in the world." That's because it is upgrading its Cali mine. It also happens to be one of the most environmentally friendly mines.

Molycorp's opportunity
As China tries to get customers to pay for its environmental cleanup, Molycorp has already spent the money to upgrade. That means higher prices will simply allow the miner to earn more from every ounce of rare earth metal it sells. That said, Molycorp has lost money over the last two years, which helps explain the precipitous share price drop. The first step is for the company to get back into the black.

That's why Molycorp is not an investment for the faint of heart. The WTO ruling shows that China's efforts at fixing its own rare earth metal problems are ruffling a few feathers, so it's hard to tell what the outcome will be in China. What is certain, though, is that China controls virtually all of the market and it wants to raise prices; if it doesn't succeed this time then it will likely try again. That's what makes Molycorp an interesting rare earth metal play for aggressive investors.

Health-care payers already spend more per member on diabetes medicine than for any other disease, and that spending is likely to grow substantially as the number of people diagnosed with the disease climbs from 366 million to 552 million by 2030.

If health-care payers hope to keep those costs in check, they'll need device and drug makers to come through with solutions that allow patients to better manage their diabetes and help prevent debilitating nerve damage and life-threatening cardiovascular disease.

MannKind , Apple , and Novo Nordisk are working on just those sorts of solutions, so let's look at each.

Changing how diabetics take their insulin

Source: MannKind

MannKind has twice failed to move its inhalable insulin Afrezza past regulators, but the company hopes the FDA's third review of the drug in July will have a better outcome.

An OK for Afrezza to go to market would give diabetics more options for mealtime insulin, potentially improving glycemic control. In studies, Afrezza demonstrated that it was as effective an insulin source as Novo Nordisk's top-selling NovoLog. However, that assessment comes with a caveat: As the FDA advisory panel pointed out when it gave Afrezza a thumbs up in April, dosing in important phase 3 trials climbed for type 1 diabetes patients receiving Afrezza while remaining the same for patients receiving NovoLog. That raises questions over whether the study's findings were clouded by Afrezza's variable dosing.

If approved, Afrezza could provide a valuable additional tool for diabetics that may bolster adherence, but it will only become a commercial success for MannKind if embraced by patients. Pfizer previously pulled its own inhaled insulin, Exubera, when sales proved lackluster. 

Personalized medicine at your fingertips

Source: Apple.

Apple executives sat down with the FDA last December to discuss how the regulator would handle devices from the tech giant that include sensors and a glucometer.

That kicked off a frenzy of excitement among diabetics and Apple fans speculating that such features could be incorporated into a long-rumored iWatch

According to an FDA response to a Freedom of Information Act request from Apple Toolbox, the agency would regulate software used to collect and provide a readout of blood sugar levels for diabetics, but not the device used to display that information. Additionally, the FDA seemed to suggest it wouldn't regulate Apple's glucometer if its intention was for a general user interested in improving their nutrition, but would regulate it if it was marketed specifically to diabetics.

The fact that Apple is asking the question supports the notion that personal mobile devices will increasingly include features designed to provide users with a running snapshot of their overall health. That type of information could go a long way toward helping patients better control their disease. However, Apple hasn't yet announced (much less launched) such a product, so it's only a guess as to what might happen here.

Tossing aside needles for good

Source: Novo Nordisk

While MannKind's focus is on launching inhalable insulin, Novo Nordisk believes a much bigger opportunity exists for insulin in tablet form.

The appeal of replacing insulin shots with a pill that can be taken like aspirin is significant. People are notoriously gun-shy when it comes to self-injection, and studies have shown that insulin injection is one reason that up to a third of diabetics fail to take their medicine as prescribed. That concerning adherence rate is particularly skewed toward younger, type 2 patients.

As a result, eliminating the use of insulin injections is becoming an important focus for drugmakers. Novo plans to invest $3.7 billion in programs to develop tablet alternatives to current injectable diabetes drugs, including both insulin and and GLP-1 agonists like Novo's blockbuster drug Victoza, which stimulates natural insulin production. If successful, Novo believes the market for tablet alternatives to injections could be worth $18 billion in the next decade.

Fool-worthy final thoughts
MannKind hopes to secure FDA approval in July, but even then it would face the major problem of paying for the launch of Afrezza. Marketing diabetes drugs is terribly expensive and MannKind's coffers aren't as full as they once were. As of the most recent quarter, the company had just $36 million in cash and $174 million in debt. That suggests MannKind may need a partner (or dilution).

That's a challenge Apple doesn't have to worry about. There's no question the company has the financial firepower to advance any number of innovative software and hardware products oriented toward health care. At Apple's Worldwide Developers Conference last week, the company revealed HealthKit, a tool that will connect developers of health-care apps to each other and to devices, so Cupertino is already moving in that direction. A bigger challenge may be developing a product that is awe-inspiring enough to become mainstream.

Of the three, Novo Nordisk is furthest away from potentially delivering on its diabetes game changer. Creating a pill form of insulin won't be easy given that the stomach is designed to break down proteins like insulin, not protect them. Even if Novo can overcome that hurdle, it will still need to figure out how to deliver enough insulin to the body (and have it last long enough) to match up or outperform current insulin injectables. Regardless, these three efforts suggest companies are focused on creating new solutions that could have an important impact on patients, so stay tuned.

Shopping for used cars can be a serious drag and there only seems to be a few options when doing so. First you can visit a handful of dealerships and scope out some potential new rides for your driveway. But when you go to these dealerships, you question whether the vehicles are fairly priced, which can leave you with that "Am I being swindled?" concern in the back of your head. 

And if you're looking online, such as at Cars.com or Autotrader.com, or in the classified section of the newspaper, you have to wonder how well the private sellers took care of their vehicles and their maintenance requirements. Some are legit, sure, but how can you be certain which cars are and which cars aren't?

There are just too many questions when searching for a reliable and legitimate car in the used auto market. However, there's one site out there that does exist, and its "secret weapon" can help you know exactly what the going market price is for a specified model. 

The site I'm referring to is MojoMotors.com and instead of trying to tell you what MojoMotors does, I'll let this one-minute video below do it for me:

Source: MojoMotors.com

Taking it a step further, I went on the site to look at one of the cars I had followed in the past. Have a look below: 

Source: Author's screenshot, MojoMotors.com

The website features and a closer look at MojoMotors
The layout at MojoMotors is very simple. You can see the vehicle information, plenty of photos when scrolling, the car's features, a dealer contact form, and perhaps most importantly, the price history. 

This shows what price the car started at, when and by how much the price dropped, and what it currently costs. 

Prospective automobile buyers can use the price history on a specific model to determine what levels other car shoppers feel comfortable paying. In other words, shoppers can get a sense for the true market value of each model. 

Think of it like a stock. When its price falls, it generally finds support at a certain level. Well, cars are the same way, just in a less liquid market. For instance, a used 2012 Ford Fusion with less than 40,000 miles might fall down to "support" near $14,000, a level that other car buyers are obviously willing to pay, since that's the point at which it sells. 

When I talked to founder and CEO Paul Nadjarian, who has roughly 20 years of experience in the auto industry, he told me that consumers can use this vital information to "shop like an expert, which is a huge win for them." 

And because cars are depreciating assets, used car dealers drop prices every five to 15 days. Going to dealerships can be intimidating and frustrating. He added that "people prefer going to the dentist, than shopping for used cars."

It's Mojo's goal to change that, and the simplicity and confidence boost it can give consumers is just one way the company plans to do it. 

New and used auto sales 
When I first spoke to Nadjarian in early March, I asked him two things: How the weather is impacting new vehicle sales, and how the high average life of U.S. vehicles is impacting used car sales.

New car sales have been slightly above flat for the last several months, as a cold and nasty winter held down consumer spending. However, it didn't diminish the need for a new car. It simply pushed the demand back into the late spring and early summer, he told me. 

So far, that thesis has been spot on, as May auto sales in the U.S. finally burst through investors' expectations, with 1.6 million vehicles sold, the most since February 2007. 

Last August, the average U.S. car was estimated to be 11.4 years old, surpassing the previous record of 11 years set old in 2012. 

So do older cars help or hurt used auto sales? According to Nadjarian, they actually help used auto sales. He reasons that because of the recession about five years ago, new vehicle sales took a severe beating.

Because many consumers no longer had the money to justify buying a new car for several years following the 2008 financial collapse, it forced them to keep their current vehicles, quickly driving up the average car's life. 

Of course, very much improved vehicle quality is also helping to keep more cars on the road for longer. However, the consumers that were postponing the purchase of a new vehicle are now moving forward with that decision and are equipping themselves with a new set of keys.

In order to make room in their garages -- and in their wallets -- consumers have to sell their old, used cars. And as car quality continues to improve, so do the resale values of the used vehicles. In the month of May (link opens a PDF), the seasonally adjusted used vehicle price index published by the National Automobile Dealers Association was at 125.8, tied with March as the highest figure ever recorded.

Many of these used vehicles fall right in the "sweet spot," according to Nadjarian, which is between $8,000 and $15,000. So it's reasonable to suggest that as long as new car sales continue to hum along near or above the 16 million seasonally adjusted annual rate, then used car sales should continue to do well too. 

Final thoughts and looking forward
And while MojoMotors' coverage does not blanket the entire country, it is rolling out and covering as much ground as possible. So if you're interested in buying a new car, why not head over to MojoMotors.com and check out the site. 

Even if it does not directly serve your area, you can choose a close-by region, and get a sense of what buyers are willing to pay for the particular car you're interested in. That way, it can help make combing your local lots a little bit easier, and less intimidating.

Source: SolarCity

SolarCity , the leader in residential solar installations, is off to a bright start in 2014. Expanding into Nevada, the 15th state in which it operates, the company recorded 136 MW of bookings in the first quarter -- an all-time record. Sourcing its PV modules from a variety of Chinese companies, SolarCity offers its customers competitive pricing by mitigating the risks associated in dealing with only a few suppliers. An invaluable customer to companies like Trina Solar  and Yingli Green Energy , SolarCity dealt its Chinese suppliers a crushing blow when it recently announced an agreement with REC Group.

Why the bears are growling
Earlier in the week, the U.S. Department of Commerce dealt the first blow to the Chinese PV suppliers when it announced, in a preliminary ruling, that the Chinese companies unfairly benefited from government subsidies. The U.S. International Trade Commission is expected to make its final ruling on the issue in October. According to the Commerce Department, the Chinese products affected by the ruling amounted to approximately $1.5 billion in 2013.

Source: Trina Solar.

Imposing a preliminary duty of 18.56% on imports of Trina Solar, the Commerce Department imposed a duty of 26.89% on most other Chinese companies. Following the news, shares of Yingli Green Energy dropped nearly 10% while shares of Trina Solar dropped nearly 6%.

Salt on the wound
In an effort to diversify where it sources its panels from, SolarCity announced an agreement in which it will purchase a minimum of 100 MW and up to 250 MW of solar panels from REC Solar during a 12 month period beginning in Q4 2014. Addressing the deal, Tanguy Serra, SolarCity's chief operating officer, said, "The availability of competitively priced, U.S. trade-compliant PV modules is an important development for the global solar industry."

Following the Commerce Department's preliminary ruling, SolarCity's decision to move away from Chinese suppliers was expected. In the company's 10-Q SEC filing, it states:

...business and financial results may be harmed as a result of increases in the cost of solar panels or tariffs on imported solar panels imposed by the U.S. government." Furthermore, the company states that "the declining cost of solar panels and the raw materials necessary to manufacture them has been a key driver in the pricing of our solar energy systems and customer adoption of this form of renewable energy.

The deal with REC Solar will not fully meet SolarCity's expected demand for solar panels in 2014. Having booked 136 MW in the first quarter, this translates to an annualized rate of 544 MW. Should SolarCity deem the supply agreement a success at the end of the year, REC solar could benefit substantially in that SolarCity is guiding for a range of 900-1,000 MW to be deployed in 2015.

The Foolish conclusion
I've been bullish on SolarCity's disruptive business model for a long time, and the recent findings from the Commerce Department are not changing my opinions in the slightest; nonetheless, it is something to definitely keep an eye on. SolarCity's customer base is growing by leaps and bounds. From 2010 to mid-2015, the company is guiding for a CAGR of 98%, and it will be critical that it find solar panel suppliers to meet that demand. 

Time Warner's HBO confirmed that total viewership for this season of Game of Thrones (18.4 million per episode) passed the 2002 season of The Sopranos (18.2 million), making it the network's most popular show ever. Given what an absolute cultural phenomenon The Sopranos was, that's pretty impressive.

But The Sopranos was the product of a different television era, with DVRs, on-demand, and online streaming viewing still largely futuristic talking points. At the time, its audience skewed heavily toward first-run broadcasts. In an era where Netflix  and Amazon.com are just as much rivals to HBO as Showtime or Starz, the way we watch television across the past 12 years has changed dramatically. The percentage of people who watch Game of Thrones as first-run TV on Sunday night is relatively low compared with its total audience size, but lots of on-demand, DVR, and online viewings have pushed the series to the top..

In this episode of The Next, Motley Fool tech analyst Eric Bleeker and Rule Breakers analyst Simon Erickson talk about how multiple viewing platforms is shaping viewing habits, as well as how production of original programming is changing in an era where between cable, premium channels like Time Warner's HBO, and online subscription products like Netflix and Amazon Prime, consumers have more choice than ever. 

PNC Financial's focus on its deposit, lending and asset management business has yielded great results for shareholder over the last two years. In 2011, PNC Financial's tangible book value stood at just $44.38 and has now increased to $56.33 in the first quarter of 2014 driven by higher earnings from its asset management and residential mortgage business.

PNC Financial did a great job at compounding book value and the stock now trades at a 55% premium to tangible book value. With about $17 per share in intangible assets, though, PNC Financial trades at just an 18% premium to total book value.

With increasing book values, improving asset quality and record earnings in 2013, PNC Financial is clearly an interesting regional bank alternative to other high-profile banks in the financial sector.

PNC Financial flies under the radar
Many Wall Street institutions and fund managers solely concentrate on high-profile banking institutions such as Bank of America, Citigroup and Wells Fargo when they want to gain financial services exposure. Large-cap banking institutions like the ones mentioned above do not only have a larger domestic branch network, but also international exposure to strategic growth markets, for instance, in Asia and Latin America.

However, investors neglect the second league of financial institutions which actually make quite attractive value propositions, too.

The financial crisis is still fresh in investors' minds and banking firms are not on the preferred shopping list of U.S. investors yet. That, however, could be a big mistake.

Since the U.S. economy is still not growing as strongly as it could, bank earnings have substantial room to grow. Broadly positioned banking institutions like PNC Financial are set to reap the rewards that come with stronger economic growth and rebounding demand for commercial banking, mortgage lending as well as asset management services.

While large-cap banks like Bank of America and Citigroup are constantly in the headlines because of settlement and litigation issues, PNC Financial takes on a low-profile role, but is nonetheless strongly growing its core business.

Solid business fundamentals
From 2011 to 2013, PNC Financial's grew revenues increased from $15.8 billion to $16.9 billion: A solid plus of 7% in an arguably difficult banking environment.

Over the same time, PNC Financial's net income skyrocketed by an even higher growth rate of 38% from $3.1 billion to $4.2 billion. Better commercial lending performance and tight cost controls have led to record earnings in 2013, a year in which other banks still struggled with litigation expenses and settlements.

Another theme worth mentioning is PNC Financial's improving underlying asset quality. Despite a short-lived spike in non-performing loans and net charge-offs in the first quarter of 2013, the trend clearly indicates that PNC Financial's asset quality is rapidly improving (see chart below). Troubled loans and net charge-offs have materially improved since the fourth quarter of last year.

(Source: PNC Financial Fourth Quarter and Full Year 2013 Results Presentation)

Final assessment
Since PNC Financial has a convincing record of increasing earnings and book value, the premium multiples do not seem to be out of touch with the underlying fundamentals. Second league banks like PNC Financial should benefit handsomely from an improving U.S. economy and stronger growth in the years ahead.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Karyopharm Therapeutics , a clinical-stage biopharmaceutical company focused on developing therapies to treat cancer and other diseases, dipped as much as 13% after the company announced a positive view from the Food and Drug Administration regarding verdinexor as an oral treatment for lymphoma in dogs.

So what: According to the company's early morning press release, the FDA's Center for Veterinary Medicine found the effectiveness and safety portion of its new animal drug application to be sufficiently complete that it would support conditional approval of verdinexor. As Karyopharm noted, the drug would be classified as "minor use," which is similar to a drug for humans being classified as orphan in that it treats a fairly small patient population. As part of its conditional marketing approval, Karyopharm must complete a randomized study to confirm the activity of verdinexor within the next five years. In phase 2 studies of the single-agent drug, 34% of dogs exhibited an overall objective response, with 19 showing signs of partial response and one having a complete response. Furthermore, dog owners claimed via a questionnaire that verdinexor didn't reduce their pet's quality of life, enhancing the tolerability and safety of the drug.

Now what: As Karyopharm noted, this is the first approval to treat canine lymphoma in more than two decades, so for client-owned dogs with B- and T-cell lymphomas this could be a great alternative care option.

By now you're probably wondering why Karyopharm is down. That likely has to do with profit-taking following its 93.5% price surge on Friday after the company reported positive phase 1 data from its combo of selinexor and a low dose of dexamethasone as a treatment for advanced multiple myeloma (in humans). Out of its evaluable patients, 50% exhibited in an objective response, with 75% showing a clinical benefit (i.e., some degree of tumor response or shrinkage and/or stable disease). While that is good news, perhaps a near-doubling in its share price, even with these patients having averaged 5.5 therapies prior to treatment with selinexor and low-dose dexamethasone, was a bit premature for a phase 1 investigational drug. I look forward to Karyopharm finally being generating some revenue via verdinexor to lessen its cash burn, and will be watching the development of selinexor closely, but with the company's valuation topping $1.2 billion I'm sticking to the sidelines.

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