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Tesla Motors Means Business, Conquers Norway

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Within 24 hours,  Tesla Motors made these two tweets:

In other words, Tesla just went from zero to six Superchargers in Europe in one day. And according to another tweet, 6 Superchargers in Norway puts 90% of Norwegians within 320 km of a Supercharger station, "well within the Model S' 425 km range."


Supercharger coverage in Norway. Source: Tesla Motors official Twitter feed.

With 90% of Norwegians within range of a Supercharging station, the company exceeded the plan for 80% coverage that it laid out in the second quarter letter to shareholders.

Tesla said in its second quarter letter to shareholders that the company would begin its European expansion with deliveries to Norway, Switzerland, and the Netherlands.

"In Norway alone, we expect to deliver almost 800 vehicles this year based on current orders," the letter said.

A key point bears are missing
Though Tesla's stock boasts a dubiously lofty premium, this is still the wrong stock to short. If there's one aspect it seems like the bears are overlooking, it's Tesla's Superchargers expansion.

By 2015, the company plans for 98% of the U.S. population to have access to a Supercharging station.


Tesla Superchargers planned for 2015. Gray and red dots both indicate Supercharger stations. Source: Tesla Motors website.

And now investors are beginning to get a first glimpse of Tesla's ambitions for Supercharging stations in Europe -- and it's looking good.

Tesla is hedging its success with its aggressive Superchargers expansion by building out the infrastructure needed to support high volume production. And now with the company's aggressive expansion in Norway, investors can be even more confident in the its plan to expand its infrastructure.

This story is just another reason why Tesla stock is likely worth holding onto over the long haul, even at today's lofty valuation.

The article Tesla Motors Means Business, Conquers Norway originally appeared on Fool.com.

Fool contributor Daniel Sparks owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Weighing the Risks of These 3 Companies

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As an investor, the possibility of degrading fundamentals, false information, high stock prices, and political upheaval threaten the potential returns on your investment. Being aware and weighing the risks will help you understand what you're getting into.

Are uniforms and safety risky?

Cintas  sells and rents uniforms, provides cleaning services, and renders document management services. All in all, this company shows decent fundamental strength. Cintas increased revenue 5% last year, thanks to "salesman productivity" and an expanding economy in regions such as the United States. Its external auditors gave Cintas an "unqualified opinion,"  meaning they didn't find any qualifiers or proverbial dirty spots in its accounting and indicated less chance of information risk. Currently, Cintas' P/E ratio trades at 19, matching the S&P 500,  indicating that market risk is no greater than the overall market. As for political risk, Cintas' global scale means it operates in regions such as Europe where the sovereign debt crisis ravaged the economy, although the region shows signs of recovery .


Looking to the future, product innovation, such as customizable bathroom supplies, will keep new and old customers engaged. Recovering European and American economies on top of the robust Latin American economy will serve as potential macroeconomic catalysts for Cintas' fundamentals.

Is keeping the world clean risky?

Ecolab  sells cleaning and sanitation technologies mainly to industrial clients. It basically helps them maintain health compliance standards. Ecolab grew its revenue 74% last year due to its acquisition of Nalco , a chemicals sanitation company. Its financials received a "fairly presented" rating from external auditors, meaning its financial statements show reliability and information risk is limited. Ecolab's P/E ratio stands at 33, exceeding the P/E of 19 for the S&P 500, meaning that it's expensive, and that waiting for a market price correction to buy shares is warranted. Ecolab's global presence includes politically volatile regions such as the Middle East. The latest outbreaks in Syria serve as a huge example of political risk.

Looking forward, Ecolab constantly invests in product innovation. Back in May, Ecolab expanded its research center in Brazil and recently introduced a "STEALTH Fusion Fly Light"  system that helps eliminate pests indoors. This represents just one of its many new product innovations. Ecolab's recent acquisition of Champion Technologies should help it capitalize on the growing energy sector, but expect added volatility from the underlying commoditized nature of oil and gas. Given the high market price risk and potential political risk associated with this company, an investor should use caution.

Power brands?

VF  owns a variety of apparel and footwear brands, with The North Face serving as one of its highest growing brands. VF's strong portfolio of brands  resulted in solid fundamentals for the company. Its revenue grew 15%, stemming from robust growth of its outdoor and actions sports products last year. People want to look good when engaging in extreme sports, and this company provides a way to do just that. VF's external auditors said the company presented its financial statements fairly . VF trades at a P/E ratio of 19, in the same territory as the S&P 500, meaning it's fairly valued. 

This company grows through constant product innovation and acquisitions. For example, VF recently introduced "Thermoball," an insulation technology  that will go in its North Face products. In addition, VF plans on streamlining its recently-acquired Timberland brand , which  will add to its top and bottom lines.

Conclusion

On the whole, weighing the fundamental, information, market and political risks will help you determine the safety of your investments. In this case, all three companies show relatively low fundamental and information risk. However, the global scale of each of these companies means potentially high political risk. Ecolab, in particular, possesses a high market risk rating due to its relatively large P/E ratio.

The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

The article Weighing the Risks of These 3 Companies originally appeared on Fool.com.

William Bias has no position in any stocks mentioned. The Motley Fool recommends Cintas. The Motley Fool owns shares of Ecolab. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Could This Move Make Billions for BlackBerry?

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It seems every day new rumors emerge about what struggling Canadian smartphone maker BlackBerry will do next as it searches for the path that suits its shareholders best. Sifting through the recent rumors, one move in particular stands out: a potential spinoff of its subscriber-based messaging service, BBM. As one of BlackBerry's strongest assets, this could certainly help make some serious money for investors in the short term. However, it's worth remembering that what's good for BlackBerry and it its investors today might not set up the company to win for years to come. In this video, Fool contributor Andrew Tonner looks at this potential move in greater detail.

As BlackBerry has discovered, the biggest tech titans are increasingly willing to invade one another's turf in order to break into the trillion-dollar revolution in mobile. To find out which tech giant is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

The article Could This Move Make Billions for BlackBerry? originally appeared on Fool.com.

Fool contributor Andrew Tonner has no position in any stocks mentioned. Follow Andrew and all his writing on Twitter at @AndrewTonnerThe Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Pulled Down by a Few Big Losers, the Dow Closes in the Red

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

With Syria, a lower consumer sentiment report and, of course, Fed tapering on the minds of investors, the major markets all closed lower for the day and the month of August.

Today, the Dow Jones Industrial Average ended lower by 30 points, or 0.21%, and now sits at 14,810. The S&P 500 lost 0.32% today, while the NASDAQ moved lower by 0.84%. For the month, the Dow ended down 689 points, or 4.44%, while the S&P 500 fell 3.14%, and the NASDAQ ended lower by 1.02%. All the major indexes ended both the day and the month as losers; let's stick with that theme and look at a few of the big blue chip losers today.


Shares of McDonald's lost 0.53% of their value today. The total cost of the recent walk-out that employees staged earlier in the week is unknown. It's also unknown whether the fast-food companies will give in to the demands for higher wages and the right to unionize. But it's hard to imagine the walk-out didn't cost the company in terms of lower sales that day. Investors should keep an eye on how this plays out; if the company gives in to the demands of the workers, it will surely hurt margins.

Alcoa was the big loser on the Dow today, as the company lost 1.41% of its value, and is now down 11.29% year to date, making it the worst performer of 2013. The move lower today came after a report was released by JPMorgan Chase that stated that, based on their analysis and predictions, two-thirds of the world's aluminum producers would lose money if the London Metal's Exchange changes the way warehouse inventories are accounted for. Many have argued that warehouse owners are using unfair rules to keep the price of metals high, although supply is higher than demand. JPMorgan believes that the price of aluminum would drop to around $100 per metric ton, a substantial decrease from the current $250 per ton that the metal is trading at. The LME is set to vote on the changes in October, and many believe they will be approved. 

Shares of Verizon fell 0.92% today, after having a great session yesterday during which shares rose 2.71%. But, the two moves are probably closely tied. The move on Thursday came as the result of news that Verizon was in talks with Vodafone about purchasing its 45% stake in Verizon Wireless for a whopping $130 billion. While the initial reaction from most Verizon investors was a good one, further examination of how this deal would actually work, and what it would ultimately mean for Verizon, likely caused shares to fall. Yesterday, I mentioned this deal would give Verizon full control of the company and its profits, but it would also load the company up with as much as $60 billion in extra debt. It would also cost the company it's A- credit rating, and possibly dilute current shares, as many believe the deal would include Verizon stock. This would put the business in a situation where it may not have the cash to begin any new system upgrades for a few years. Investors should be both excited and nervous about the possible deal, which is likely the cause for the fluctuating stock price the past two days.

More foolish insight

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Pulled Down by a Few Big Losers, the Dow Closes in the Red originally appeared on Fool.com.

Fool contributor Matt Thalman has no position in any stocks mentioned.  Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513 The Motley Fool recommends McDonald's. The Motley Fool owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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This Stock Was the Dow's Only Winner in August

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

With the Syrian situation still up in the air, U.S. stocks suffered small losses today, with the S&P 500 down 0.3%, while the narrower, price-weighted Dow Jones Industrial Average rose 0.2%. Today capped stocks' third losing week out of the last four, and put the S&P 500 down 3.1% for August -- its worst monthly performance since May 2012.

However, while the month's poor performance was achieved with low realized volatility, its causes are already reflected in the outlook for volatility in September, embedded in today's CBOE Volatility Index's closing value of 17.01. (The VIX, Wall Street's "fear index," is calculated from S&P 500 option prices, and reflects investor expectations for stock market volatility over the coming 30 days.)


We came into August with the VIX at 13.45, a low value by historical standards, but the index fell further, bottoming out at 11.84 on Aug. 5. Looking back on the month now, realized volatility in the S&P 500 in August was lower yet than that, at 10.43%. However, combine the escalation over Syria with the prospect of a potential September Fed "taper" of its bond purchases -- and that of political squabbling over the federal deficit/debt -- and you've got more than enough reason for investors to push the VIX up 21% this week alone.

There can only be one: Microsoft
The Dow recorded a 4.4% loss in August, with only a single Dow component having a winning month. That stock was Microsoft , which gained 4.9% this month. Just a week ago, the company announced that CEO Steve Ballmer would step down within the next 12 months, and that the search for his replacement had begun. That news was good for a 7.3% pop in the stock.

However, that was not to be the last August surprise from the company. Today, Microsoft announced another fundamental governance change -- nay, improvement -- with the signing of a "cooperation agreement" with activist investor ValueAct Capital, which owns approximately 0.8% of the shares outstanding. The following paragraph from the press release highlights the crux of the agreement:

The cooperation agreement provides for regular meetings between Mason Morfit, president of ValueAct Capital, and selected Microsoft directors and management to discuss a range of significant business issues. The agreement also gives ValueAct Capital the option of having Morfit join the Microsoft board of directors beginning at the first quarterly board meeting after the 2013 annual shareholders meeting.

For shareholders, this is an excellent development. While it may be technically true that only independent directors make up Microsoft's four board committees, these same directors have done a poor job of holding Mr. Ballmer accountable for Microsoft's flagrant missteps in adapting to the rapidly changing technology landscape. Adding a director with a substantial economic interest in Microsoft to the mix will do no harm... quite the contrary!

Moreover, ValueAct's presence as a shareholder appears to already have had a broader effect. As Nomura Securities' Director of Technology Research Rick Sherlund said this week, before the latest announcement, "I do think there's a tidal shift in the corporate governance of Microsoft." The pieces are falling into place -- the next one being the critical hiring of a new chief executive.

Would Microsoft be better off abandoning consumer technologies to focus exclusively on the corporate market? One thing is certain: The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called, "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

The article This Stock Was the Dow's Only Winner in August originally appeared on Fool.com.

Fool contributor Alex Dumortier, CFA has no position in any stocks mentioned; you can follow him on LinkedIn. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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What Lies Ahead for BlackBerry Investors?

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The "Warren Buffett of Canada" (a ridiculous nickname), Prem Watsa, is a 10% owner of beleaguered smartphone maker BlackBerry and, at this point, the company's biggest cheerleader. Earlier this month, the value investor extraordinaire resigned from his board seat at BlackBerry, prompting the media and analysts to consider Watsa a potential bidder for the company, which has publicly disclosed its interest in going private. Together with Canadian pension funds and banks, Watsa's team effort would represent about 17% of BlackBerry's outstanding shares, and would likely be the leading contender. What does this mean for BlackBerry investors and the future of the company?

Unyielding support
To have Prem Watsa by your side through the depths of a near-fatal company crisis is about as strong a vote of faith as one can get. By any definition of the word, Watsa is a conservative investor. Behind Fairfax Financial, an insurance-based conglomerate that looks strikingly similar to a young Berkshire Hathaway, is Watsa's ultra-conservative value investing strategy. He attracts plenty of criticism from those who demand more impressive short-term results, as Watsa has kept a large cash hedge against what he considers to be an overvalued market. During the bull market of the past couple of years, Fairfax's holdings have not kept up pace and resemble a doomsday strategy.

This is important, because when it comes to investing in BlackBerry, let alone being its 10% owner, few would consider the position conservative. Yet Watsa stands firmly behind the company and appears convinced that the company holds far greater value than the market credits it with. Previously, the investor stated that BlackBerry was a five-year turnaround play -- as a public company. It is possible that Watsa has shifted course, and believes that the best way for the company to unlock its value is to remove itself from the public markets.


So, again, what does this suggest for BlackBerry investors?

Mixed bag
If Watsa comes out with an offer for the company, it's unlikely that it will be a large premium to the company's current price of approximately $10.30 per share. In the past year, the stock has traded as high as $18.30 per share, and as low as $6.22. As mentioned, the Canadian guru is one of the most conservative players out there, and he will not be making a gift to BlackBerry shareholders -- whatever price that comes out of this will be one that is firmly rooted in a heavily discounted thesis.

On the other hand, if Watsa does not come forward with an offer, the takeaway for investors will be that the company's value can improve and appreciate as a public entity. While it is not a guarantee that by following the moves of a famed investor, one will enjoy the same returns, Watsa's risk-averse investing prowess cannot be ignored in this situation. BlackBerry receives some of the most negative attention of any technology company out there, and it's easy to be blindsided by the sentiment. But, with a long-term attitude, BlackBerry remains an interesting investment. The company may spin off its messenger service, giving shareholders a piece of that more immediately profitable pie, and it also remains richly stocked with intangible assets that could fetch a pretty penny in a sale. The question of BlackBerry dying and the stock going to zero is an improbable event.

Don't expect the stock to rocket up any time soon without the catalyst of a premium buyout offer -- this is not a quick turnaround play. Current investors are best suited to leave the news regarding BlackBerry alone, and sit by Watsa's side as either a long-term investor, or perhaps as the recipient of a Canadian-fueled buyout.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

The article What Lies Ahead for BlackBerry Investors? originally appeared on Fool.com.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Dow's Miserable August Closes With a Whimper

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

August started out so promising with the Dow Jones Industrial Average hitting a record high on the second day of the month, but four weeks later, the blue chips index finds itself down 5% from that peak, and the broad-based S&P 500 turned in its worst month in more than a year. The Dow finished down 31 points, or 0.2%, to close out August at 14,810. Markets continued to react to developments in Syria, as Secretary of State John Kerry said the U.S. has declassified its evidence of chemical attacks, and urged nations to act against the Syrian regime. Meanwhile, President Obama said he had not yet come to a decision as to what action to take.

On the day's economic docket, reports were mostly positive. The University of Michigan consumer confidence survey improved from 80.0 earlier in the month, to 82.1, topping expectations of 80.0. Similarly, the Chicago Purchasing Managers Index increased from 52.3 a month ago, to 53.0, in-line with estimates, indicating a moderate expansion in manufacturing activity. On the down side, personal income and spending figures for July increased by just 0.1%, showing slow growth in consumer demand.


Turning to individual stocks, Alcoa took it on the chin today, falling 1.4%, more than any other blue chip. The aluminum manufacturer has already had a terrible year so far, falling 12% while the Dow is up double-digits, and slid more today after a report from JPMorganChase said that a pending decision to cut premiums on the London Metal Exchange would cause two-thirds of aluminum producers to lose money. The expected decision spells more bad news for the aluminum industry, which has struggled with low prices lately due to excess supply, and weak demand.

Wal-Mart , meanwhile, was the Dow's biggest gainer, rising 0.8%, perhaps in response to the better-than-expected consumer confidence numbers. The world's largest retailer also announced it would provide $50 million in low-interest loans to improve Bangladeshi factories after a building collapse in one of those plants killed over 1,000 workers earlier in the year. Several other companies have offered similar loans, some of which are over $100 million, to shore up the supply chain. Separately, the Wall Street Journal reported that the retailer is set to submit a proposal to operate supermarkets in India, which would expand Wal-Mart's nascent presence in the world's second-most-populous country, an important step for its long-term revenue growth.

Wal-Mart may be the reigning ruler of retail, but one of our analysts sees its demise coming around the bend. To find out more, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform, and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

The article Dow's Miserable August Closes With a Whimper originally appeared on Fool.com.

Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Should Microsoft Investors Hope for an Xbox Spinoff?

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As every analyst and media outlet spouts its own vision for tech giant Microsoft , it seems the future course for this tech laggard could head in one of a million possible directions. Investors hungry to actually make a buck after years of doing exactly the opposite have hoped for any number of moves, all aiming to unlock shareholder value. And while there are several interesting spinoff opportunities possibly in the future of the software powerhouse, one thing is clear: It needs to hold on to the Xbox. In this video, Fool contributor Andrew Tonner gives his case for why Microsoft is fundamentally better off by holding on to its gaming franchise.

Microsoft's world has been increasingly thrown into chaos as the biggest tech titans invade one another's turf in order to gain a slice of the trillion-dollar revolution in mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

The article Should Microsoft Investors Hope for an Xbox Spinoff? originally appeared on Fool.com.

Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew on Twitter: @AndrewTonnerThe Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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A Looming Risk for BlackBerry

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The recent confirmation that it's on the prowl for a possible buyer only helped to reiterate what observers of the global smartphone market have known for some time -- Canadian smartphone maker BlackBerry is in some seriously hot water. The company has seen its global share of the smartphone market slowly shrivel over the several quarters, and was recently passed by Microsoft as the No. 3 player in the smartphone market. Clearly, business ain't exactly booming.

However, one analyst recently made a set of very bold predictions that, if true, would mean things have gone from bad to worse at BlackBerry. In this video, tech and telecom analyst Andrew Tonner breaks down the rumors and what they could mean for BlackBerry and its buyout bonanza.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. BlackBerry may have already lost the war, as buyout rumors indicate. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!


The article A Looming Risk for BlackBerry originally appeared on Fool.com.

Fool contributor Andrew Tonner has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Will Expedia Buy This Travel Rival?

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The news that the world's largest online travel agent, Expedia , just agreed to power the website of rival Travelocity suggests Travelocity's parent, Sabre Holdings, might be clearing the decks in anticipation of its IPO.

There's no question the online travel agency -- or OTA -- space is a highly competitive business, and while Expedia might be the biggest player, priceline.com's Booking.com gives it a run for the money globally. Indeed, on its second-quarter conference call last month, Expedia said both Booking and its own spinoff TripAdvisor were hurting its performance.

In the case of TripAdvisor, there were fewer commissions paid per click as it moved to metasearch, so revenue and profits from referrals affected Expedia. Add in the declining performance of its Hotwire brand, and the OTA has enough internal issues before you even get to its rivals. As Booking's marketing spending has become more aggressive, the OTA needs to be able to juice its own operations.


Thus the deal for Travelocity gives it some leverage. Actually, a lot of leverage, since the agreement between the two applies only to North America. Sabre will keep hold of the European business for now, which presumably it can also sell if it so chooses. Foremost is that Expedia gets an upper hand in contract negotiations with hotels because it's eliminated a competitor from the market and will be the source of supply for the two. Travelocity merely becomes Expedia's distribution channel. Naturally, that means travelers have fewer options, too.

But the deal works out quite well for Sabre as it marches toward its IPO. It wipes from its balance sheet a lot of the costs associated with the operation and lets Expedia handle the technology aspects of the brand. While there's been no real statement that Sabre is going public anytime soon -- though it has stated its desire to do so in the past -- the speculation is running rampant.

Earlier this year Sabre brought in a new CFO with extensive experience at various financial institutions (the old one moved on to greener pastures at Sabre's private equity owners), and then two weeks ago the company president was abruptly made CEO with the former executive staying on as a director. If it walks like a duck, and talks like a duck... it's a company preparing for a re-introduction to the public markets.

In short, whatever the ultimate outcome, it looks like a win-win deal for everyone involved, including Priceline and the other OTAs. One less competitor means more for them. Yet it also highlights that while brand can be important, it's not everything.

Where Priceline has gained advantage from William Shatner being The Negotiator -- so much so they actually had to resurrect him from the dead after apparently killing him off -- the Traveling Gnome mascot had as much impact on Travelocity's performance as the Pets.com sock puppet did for that tech boom-era bust.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Shares of Expedia have lost nearly a quarter of their value this year and are down 30% from their 52-week high. While the OTA didn't gain any ground because of the news, it's still a low-risk, low-cost step to enhancing its own competitive position.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate and give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

The article Will Expedia Buy This Travel Rival? originally appeared on Fool.com.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Priceline.com and TripAdvisor. The Motley Fool owns shares of Priceline.com and TripAdvisor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Aerospace Testing Alliance's Defense Contract Begins Its Second Decade

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The U.S. Department of Defense announced no fewer than 35 separate contract awards, worth a combined $1.78 billion, on Friday. Of these, the single largest contract awarded went to a joint venture among GP Strategies' General Physics Corporation, Computer Sciences Corporation , and privately held Jacobs Sverdrup Construction, doing business as Aerospace Testing Alliance (ATA).

This contract, worth $218.6 million, is characterized as a "modification" of a cost-plus-award-fee contract previously awarded to ATA for its work in operating, maintaining, and performing information management services in support of the Arnold Engineering Development Complex (AEDC) at Arnold Air Force Base in Tennessee.

ATA has been working on this contract since at least 2004, assisting the Air Force in testing and evaluating weapons and aerospace systems ranging from the Pratt & Whitney F119 jet engine, to the ATK GASL supersonic scramjet, to the Boeing F-15K fighter jet being marketed to the Koreans, to the new Boeing F-15SA configuration ordered by the Royal Saudi Air Force.


Friday's contract modification will extend ATA's contract through Sept. 30, 2014.

The article Aerospace Testing Alliance's Defense Contract Begins Its Second Decade originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Boeing Wins Three Defense Contracts Friday

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The U.S. Department of Defense announced no fewer than 35 separate contract awards, worth a combined $1.78 billion Friday. Of these, Boeing won two contracts cleanly, and part of a third:

  • $24.1 million: to supply rotary wing blades for U.S. Army helicopters through Aug. 31, 2015.
  • $22.7 million: via a modification to a previously awarded contract to develop and demonstrate the new AH-64 Apache Block III attack helicopter. The latest iteration of the Apache, the Block III is said to include upgrades permitting, for example, the in-flight control of unmanned aerial vehicles from aboard the helo, as well as a new split-torque face gear transmission that boosts power throughout by more than 20% over previous versions of the Apache.

AH-64 Apache Block III, Source: Boeing

  • $8.9 million: via an award to the Bell Boeing Joint Project Office, through which Boeing collaborates with Textron's Bell Helicopter in the production of V-22 Osprey tiltrotor aircraft. This contract orders the JPO to supply 10 V-22 Block A to B 50-69 series upgrade kits and ten V-22 Block A to B 50-69 series installs for the U.S. Naval Air System Command.

The article Boeing Wins Three Defense Contracts Friday originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Textron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Pentagon Awards $1.78 Billion in Defense Contracts Friday

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The U.S. Department of Defense announced no fewer than 35 separate contract awards, worth a combined $1.78 billion Friday. Among them:

  • Elbit Systems subsidiary Kollsman, won a $44.8 million firm-fixed-price, five-year requirements contract to repair nine Weapon Repairable Assemblies on Night Targeting Systems installed in Marine Corps AH-1W SuperCobra helicopters through September 2018.
  • Lockheed Martin won a $44.1 million contract modification to conduct telemetry redesigns on the PATRIOT Advanced Capability-3 air defense system for the Army.
  • L-3 Communications won a $23.9 million cost-plus-fixed-fee, non-option eligible, non-multi-year contract to assist with upgrades for the U.S. Army Intelligence and Security Command Futures Directorate.
  • General Electric won a $25.1 million indefinite-delivery/indefinite-quantity, firm-fixed-price contract to supply the Navy with up to 190 Low-Rate Initial Production AV-8B Radar Display Computers, 15 spare card sets, and six engineering development units, and to provide non-recurring engineering support through April 2016.
  • Raytheon won an $11.4 million estimated cost-plus fixed-fee requirements foreign military sales contract to maintain F-15 and similar radar systems and avionics hardware for F-15 fighter jets operated by the air forces of Israel, Saudi Arabia, Korea, Japan, and Singapore. This contract runs through Sept. 1, 2018. 

The article Pentagon Awards $1.78 Billion in Defense Contracts Friday originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company, L-3 Communications Holdings, Lockheed Martin, and Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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FedEx Wins $221 Million Defense Contract

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The U.S. Department of Defense announced no fewer than 35 separate contract awards, worth a combined $1.78 billion Friday. A very significant portion of these funds, however, about 32%, was not spent on military hardware at all -- but on shipping costs.

Specifically, the U.S. Transportation Command awarded three contracts Friday, worth $171 million each, to hire FedEx , UPS , and Atlas Air Worldwide's Polar Air Cargo subsidiary to perform a second option year (out of four possible) on their respective indefinite delivery/indefinite quantity fixed-price contracts to perform Worldwide Express 5 (WWX-5) small package delivery services for the military. All three of these contracts will now run through Sept. 30, 2014.

Incidentally, FedEx won a second defense contract for itself Friday, this being a $49.8 million option-year exercise hiring FedEx to perform "overpacking" and transportation of perishable substances for the Defense Commissary Agency and Defense Logistics Agency. This contract, which specifically concerns the delivery of "primarily fresh fruits and vegetables," continues FedEx's contract to deliver such produce from the U.S. West Coast to Defense Department locations in Japan, Korea, Guam, and Alaska. Unless extended further, it will run from Oct. 1, 2013 through Sept. 30, 2014.

The article FedEx Wins $221 Million Defense Contract originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends FedEx and United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Apple Remains in Command of U.S. Mobile

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While much has been written about the ever-increasing market share leads being established by Google Android devices over Apple iOS when it comes to global device shipments, a recent report from Jumptap shows that the lead in U.S. mobile traffic still belongs to the King of Cupertino. Samsung, the clear Android leader, continues to gain on Apple's lead, but it has a long way to go before it becomes truly competitive. Samsung, and Android devices in general, may be shipping more units on a worldwide basis, but with Apple leading U.S. mobile traffic, the company is in great shape.

The report and what the numbers mean
Though research from IDC showed that Android's global market share of smartphones had jumped to 79.3%, while iOS fell to 13.2%, the Jumptap research examined at mobile usage in the U.S. On this basis, the iPhone was able to grow by 9.6% to a 41.4% market share from 2012 to 2013; most of this growth seems to have come from Apple's iPod Touch, which saw a decline in market share of 10.1% to 15.4%. On an overall basis, Apple's position remained quite strong, commanding well over 50% of mobile traffic and remaining significantly ahead of competitors. The largest gain outside Apple was the 3.6% gain for Samsung's Galaxy S line, bringing it to a 13% market share.

In tablets, while Apple was able to grow the iPad's share of mobile traffic to 70.1%, the Kindle Fire declined significantly to 10.1%, allowing Samsung's Galaxy Tabs to edge them out for second place, with 11.1% of the market share. The overall message is that while Samsung is gathering steam, Apple still has a healthy lead in terms of growing mobile traffic.


Why this matters for investors
When thinking about Apple, especially with the imminent release of the iPhone 5C that is believed to be targeted at helping Apple grow its emerging market business -- among other things -- it is important to remember that the U.S. market is still vital. Mobile advertising, which still remains in its infancy, is becoming increasingly important to monetizing the smartphone and tablet revolution. Apple makes a significant percentage of its profits selling iPhones, but becoming more fully integrated in the ad world will grow in importance as the U.S. market becomes more fully saturated.

New early-upgrade plans from three of the major U.S. carriers may accelerate the replacement cycle of smartphones, but finding additional ways to profit from established ecosystems is critical to the long-term success of each of these players. That's why developments like iOS in the Car and iTunes Radio are so important. The fact that Apple devices still heavily command the breadth of mobile traffic is great news for Apple shareholders because it means that, at least for now, the company has a captive and active audience that can be tapped for additional revenue with the introduction of new products.

Regardless of what you think of Apple's product cycle, which I believe will need to accelerate at some point, the Jumptap report shows that the company continues to be the dominant portal for bring U.S. mobile users online. With the stock still trading at a price-to-earnings multiple just over 12, this dominance is cheap and the stock belongs in your portfolio.

Not only is Apple in charge of the U.S. mobile landscape, it flourishes in devices. Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

The article Apple Remains in Command of U.S. Mobile originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Glancy Binkow & Goldberg Announces Lead Plaintiff Deadline in the Class Action Lawsuit against Light

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Glancy Binkow & Goldberg Announces Lead Plaintiff Deadline in the Class Action Lawsuit against LightInTheBox Holding Co., Ltd.

LOS ANGELES--(BUSINESS WIRE)-- Glancy Binkow & Goldberg LLP announces that all purchasers of the securities of LightInTheBox Holding Co., Ltd. ("LITB" or the "Company") (NYS: LITB) between June 6, 2013 and August 19, 2013, inclusive (the "Class Period'), have until October 28, 2013 to file a motion to be appointed as lead plaintiff in the shareholder lawsuit filed in the United States District Court for the Southern District of New York.

A COPY OF THE COMPLAINT IS AVAILABLE FROM THE COURT OR FROM GLANCY BINKOW & GOLDBERG LLP. PLEASE CONTACT US AT (212) 682-5340, TOLL-FREE AT (888) 773-9224 OR AT SHAREHOLDERS@GLANCYLAW.COM TO DISCUSS THIS MATTER. IF YOU INQUIRE BY EMAIL PLEASE INCLUDE YOUR MAILING ADDRESS, TELEPHONE NUMBER AND NUMBER OF SHARES PURCHASED.


LITB, through its subsidiaries, operates as an online retailing company and provides apparel products, including special occasion apparel, such as wedding dresses, bridesmaid dresses, groom wear, cocktail dresses, formal evening wear, graduation dresses, and accessories. The Complaint alleges that defendants issued false and/or misleading statements and/or failed to disclose that: (1) LITB's sales growth had dramatically decreased during the second quarter of 2013; (2) the Company's costs had grown more than its sales during the second quarter of 2013; and (3) as a result of the foregoing, the Company was not on track to achieve the financial results defendants had led the market to expect during the Class Period.

If you are a member of the Class described above you may move the Court no later than October 28, 2013 to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

To learn more about this action or if you have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, Toll-Free at (888) 773-9224, or contact Gregory Linkh, Esquire, of Glancy Binkow & Goldberg LLP at 122 E. 42nd Street, Suite 2920, New York, New York 10168, at (212) 682-5340, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.



Glancy Binkow & Goldberg LLP, Los Angeles, CA
Michael Goldberg, (888) 773-9224
or
Glancy Binkow & Goldberg LLP, New York, NY
Gregory Linkh, (212) 682-5340
shareholders@glancylaw.com
www.glancylaw.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article Glancy Binkow & Goldberg Announces Lead Plaintiff Deadline in the Class Action Lawsuit against LightInTheBox Holding Co., Ltd. originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of KiOR, Inc.

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Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of KiOR, Inc.

BENSALEM, Pa.--(BUSINESS WIRE)-- Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of purchasers of the common stock of KiOR, Inc. ("KiOR" or the "Company") (NAS: KIOR) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by KiOR between May 9, 2013 and August 7, 2013 concerning its financial prospects.

KiOR is a renewable fuels company that utilizes a proprietary biomass-conversion fuel technology platform for the production and sale of cellulosic gasoline and diesel. On May 9, 2013, KiOR's chief executive officer, Fred Cannon, projected the Company's Columbus, Mississippi facility would produce between 300,000 and 500,000 gallons of fuel during the second quarter of 2013, in line with the Company's estimate it would produce between 3 million and 5 million gallons of fuel in 2013.


On August 8, 2013, the Company announced that KiOR had shipped only 75,000 gallons of fuel from the Columbus facility during the second quarter. In addition, the Company reported revenue for the quarter of only $240,000 -- approximately 12% of the $1.93 million average of five analysts' estimates compiled by Bloomberg. Following this news, KiOR shares dropped from $4.76 per share on August 7, 2013 to $2.62 on August 15, 2013.

If you purchased KiOR shares, if you have information or would like to learn more about these claims, if you purchased KiOR shares prior to May 9, 2013 and have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020; by telephone at (215) 638-4847, Toll Free at (888) 638-4847; or by email to howardsmith@howardsmithlaw.com; or visit our website at www.howardsmithlaw.com.



Law Offices of Howard G. Smith
Howard G. Smith, Esquire
(215) 638-4847
(888) 638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com

KEYWORDS:   United States  North America  Pennsylvania

INDUSTRY KEYWORDS:

The article Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of KiOR, Inc. originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Oil Prices Won't Sink the Dow

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Both the Dow Jones Industrial Average and S&P 500 dropped early this week on fear of conflict in Syria and rapidly rising oil prices. You may think the rise in oil prices is bad for stocks, but in the long term that's actually not the case. The chart below shows that oil and stocks often move together, benefiting from good times in the economy and dropping when things go bad.

WTI Crude Oil Spot Price Chart

WTI Crude Oil Spot Price data by YCharts.


Oil and the Dow have a lot in common
When talking about the price of oil, the first thing we need to look at is what affects the price of oil in the long term. As with most commodities in the global market, supply and demand drive the price of oil. Supply can be complex, with OPEC regularly increasing or decreasing production, but demand is a little easier to understand. The bottom line is that what's good for stocks is good for the price of oil.

Overall, stock markets like to see rising GDP, a growing labor force, and increasing auto sales. All of those things are positive for oil producers, and they lead to increased demand.

On the flip side, recessions are bad for both stocks and oil. You can see above that between about 2000 and 2002, stocks dropped along with the price of oil. They have more in common than you might think.

More oil is coming from home
The biggest development in the energy business over the past decade has been improved efficiency in shale drilling. Land that was once nearly worthless in western North Dakota is now full of productive wells -- something that's been replicated around the country.

In 2005, the U.S. produced just 8.25 million barrels of oil per day. This July, production was up to 12.04 million barrels per day, largely because of the expansion of shale drilling. That has helped drive imports down: Just 35.9% of our net imports come from overseas versus 60.3% in 2005.  

When the price of oil rises, it may have a negative impact on consumers' bank accounts, but it's also creating jobs that help the economy. The good thing is that we're not sending as much money overseas as we once did, which makes the rising price of oil less concerning for the overall market.

There's a cap on the price of oil
The final reason I don't think investors need to be worried about the price of oil is consumers' ability to change their behavior. As the price of gasoline has risen over the past decade, we've begun driving more efficient vehicles, and recently alternatives like natural-gas and electric vehicles have become viable options. You can see below that consumption is dropping sharply as the price of oil has risen.

US Oil Consumption Chart

US Oil Consumption data by YCharts.

That trend will continue as consumers become more comfortable buying alternative vehicles. In effect, the threat of alternatives and the willingness of consumers to buy more efficient vehicles creates a cap on the price of oil. There's only so much we can take before we just stop driving.

Foolish bottom line
Unless all-out war breaks out in the Middle East and multiple major oil-suppliers are involved, I don't think there's a lot for investors to worry about. After all, we've been through two wars with Iraq and conflicts in Libya and Iran without much long-term impact on oil or stocks. That will likely be the case again this time around.

Rather than worry about oil, you should spend your time looking for great stocks you can hold for a long time. If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

The article Oil Prices Won't Sink the Dow originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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5 Stocks Growing Their Dividends by More Than 10% Per Year

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Dividend investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with a steadily rising income stream that essentially equates to a raise every year. And, well, who doesn't like a raise?

But there are other reasons to value dividend growth so highly, and they're well supported by research. For instance, a study by C. Thomas Howard published in Advisor Perspectives found that for every percentage point a stock's yield rises, its annual return increases by 0.22 percentage points if it's a large cap, 0.25 if it's a mid cap, and 0.46 if it's a small cap. Even better, Howard found that dividend-growing stocks outperformed dividend cutters by 10 percentage points per year from 1973 to 2010 and beat both flat- and no-dividend stocks. And the icing on the cake is that Howard showed that this outperformance came with a third less volatility. Higher returns, less volatility-induced stress, and a steadily growing income stream -- what's not to love?

With that in mind, here are five stocks that have grown their dividends by more than 10% over the past year.

Company

1-Year Dividend Growth Rate

El Paso Pipeline Partners

19%

Marathon Petroleum

13.1%

Lorillard

11.6%

United Technologies

11.5%

Eaton

11.1%


Source: S&P Capital IQ.

El Paso Pipeline Partners owns and operates interstate natural gas transportation and terminaling facilities with approximately 13,000 miles of pipeline serving the Rocky Mountain, Midwest, Southeast, and Gulf Coast regions of the United States . El Paso Pipeline Partners currently sports a five-star rating in CAPS and is yielding a hefty 6%.

Marathon Petroleum refines, transports, and markets petroleum products. The company owns and operates seven refineries in the Gulf Coast and Midwest regions of the U.S., as well as a network of more than 5,000 Marathon and approximately 1,470 Speedway gas stations. CAPS participants have awarded it with a five-star rating, and the company is paying out a 2.3% dividend yield.

Lorillard manufactures and sells cigarettes in the United States, under brands such as Newport, Kent, True, Maverick, and Old Gold. Lorillard's strong free cash flow generation allows the company to pay a sizable 5.2% dividend, helping the company earn a four-star ranking on CAPS.

United Technologies provides technology products and services to the building systems and aerospace industries worldwide. This diversified conglomerate owns Carrier heating and air conditioning, Otis elevators, Pratt & Whitney aircraft engines, Sikorsky helicopters, and more. Fools have given United Technologies a four-star rating in CAPS, and its stock is yielding 2.1%.

Eaton is a diversified power management company providing energy-efficient solutions that help its customers effectively manage electrical, hydraulic, and mechanical power. This Fool favorite has a top five-star CAPS rating and offers investors a growing 2.6% dividend.

The Foolish bottom line
Had you invested in these companies a year ago, you would have enjoyed total dividend increases ranging from 11% to 19%. That level of growth would provide a substantial boost to just about any investor's dividend income. But more important to investors today is to identify the companies that will grow their dividends substantially in the years ahead. If you're interested in hearing about some excellent companies that are likely to boost their dividends from this point forward, I'd like to offer you a brand-new free report from The Motley Fool's expert analysts called "Secure Your Future With 9 Rock-Solid Dividend Stocks." Today I invite you to download it at no cost to you. To discover the identities of these companies before the rest of the market catches on, you can access this valuable free report by simply clicking here now.

The article 5 Stocks Growing Their Dividends by More Than 10% Per Year originally appeared on Fool.com.

Joe Tenebruso manages a Real-Money Portfolio for The Motley Fool and is an analyst on the Fool's Stock Advisor and Supernova premium service teams. You can connect with him on Twitter: @Tier1Investor. Joe has no position in any stocks mentioned. The Motley Fool recommends El Paso Pipeline Partners. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Fallout From the NFL's Concussion Settlement

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The National Football League has agreed to a $765 million settlement in a dispute with retired players over the health impact from concussions. The settlement takes a potentially negative distraction away from the league before the start of its season. Fans love big hits, but they don't want to think about the damage those hits may incur in the long term. The NFL doesn't want any storms brewing that could damage the brand and its still increasing popularity.

After the lockout, the NFL signed contract extensions with CBS, NBC, and Fox that saw a 50% increase in rights fees. Disney's ESPN franchise paid even more, a 73% increase to $1.9 billion per year for Monday Night Football. Thanks to those deals, the league's revenue stream was in no danger of drying up soon, but if fans started to turn away from the violence inherent to the sport, it could have weakened the NFL's leverage for the next round of deals early in the next decade.

In this video, analyst David Williamson discusses the NFL and why its recent settlement with players is a win for the league. Learn how investors may benefit from health-care stocks associated with the concussion settlement and watch as David uncovers the truth behind why DIRECTV may lose its all-access Sunday Ticket to a huge tech giant. 


Tired of watching your stocks creep up year after year at a glacial pace? Motley Fool co-founder David Gardner, founder of the world's No. 1 growth-stock newsletter, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, with you! It's a special 100% free report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains, and click here for instant access to a whole new game plan of stock picks to help power your portfolio.

The article Fallout From the NFL's Concussion Settlement originally appeared on Fool.com.

David Williamson owns shares of Eli Lilly and Google. Follow David on Twitter: @MotleyDavid. The Motley Fool recommends DIRECTV and Google and owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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