St. Jude Medical and its investors have weathered quite a storm in the medical device industry. The company has pushed past falling sales and earnings through 2013 to post remarkable gains over the past 52 weeks. Still, growth has remained elusive in some of St. Jude's top business divisions. The company has turned to one of its smaller businesses with big potential for its future: neuromodulation.

St. Jude's neuromodulation business made up less than 10% of its total sales through the nine months of 2013 that ended in September, but this division's managed to eke out minor growth despite slips at St. Jude's larger units. The company's banking on a new trial of its Prodigy next-generation neurostimulation device to help boost growth in the near future, launching a new study of the device in the U.S. this week.

But can the Prodigy device -- and St. Jude's neuromodulation business -- help restore growth to this cardiovascular giant? Fool contributor Dan Carroll tells you all you need to know in the video below, and explains how tough competition from the likes of Medtronic and Stryker will weigh on St. Jude's neuromodulation push.

Here are today's top news headlines from Fool.com. Check back throughout the day as this list is updated, and follow us on Twitter at TMFBreaking.

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The online retail sector saw more than $500 billion in revenue last year. Between 2008 and 2012, this market also saw an annual growth rate of 19%, and it is expected to reach $1 trillion within the next six years. With such enormous scale and accelerating growth at stake, traditional retailers such as Wal-Mart and Costco have been increasing their e-commerce exposure in the last five years. With more than $50 billion in online sales in 2012, however, Amazon.com is the clear market leader.

Considering that it took Amazon.com 20 years to reach its current scale of operations, is it possible to develop a strong competitor in a short time from scratch? It is, according to Chieh Huang, CEO of e-commerce start-up Boxed.The story of Boxed, which as its site says, sells "bulk-sized products at pint-sized prices," shows how 10 people managed to build an Amazon.com competitor in only three months. It also shows what the most important ingredient of building a successful e-commerce start-up is and how important it is for investors to understand that there are no high barriers to entry for a creative start-up.

Source: AT Kearney, Euromonitor.

How Boxed plans to become the online Costco
With roughly $1 million in initial funding, Chieh Huang formed a team of 10 engineers and planners, most of whom had experience in developing online games. Together they developed a mobile-only e-commerce application called Boxed, which was released three months ago. 

Aware of the intense competition in the online retail space, the team decided to focus on a particular niche that was unserved. They focused on building an online platform for bulk orders, a segment traditionally dominated by big club retailers such as Sam's Club and Costco, because they could build an economic moat faster by saving time for customers who are either too busy or live too far away from a warehouse club. As Quartz contributor Christopher Mims notes, if Amazon is the online Wal-Mart, Boxed aims to be the online Costco.

To differentiate its product as much as possible from Costco's online site, the Boxed team used its experience making games for Zynga to develop a user-friendly back-end interface that allows anybody to edit the app. They also designed a pleasant front-end user experience, with friendly icons and game characters.

Fighting against Amazon.com and Wal-Mart
To remain competitive against Amazon.com (which has spent more than $14 billion on 50 warehouses since 2010) or Wal-Mart (which is transforming its more than 4,000 U.S. locations into an efficient distribution network), Boxed decided to rent its own warehouses in Las Vegas and New Jersey. These cities were chosen due to their proximity to most cities located on either the east or west coast.

In order to provide free overnight shipping for orders over $75, the company decided to ship wholesale staples out via regular ground mail. By keeping its own warehouses, relying on regular ground mail, and using its own proprietary software to manage supply and demand, the company has been able to provide competitive pricing despite its small scale of operations. Notice that unlike Costco, which may have 5,000 items in its stores, Boxed keeps only 500 units available for users in its own warehouses.

To remain efficient, Boxed decided to carry only a limited range of products. The company now sells roughly 600 items that were chosen due to their popularity and high liquidity, including items such as cereals, diapers, or toilet paper. This allows the company to keep minimal inventory.

By contrast, Amazon.com has more than 200 million items in its catalog and adds nearly 175,000 new items per day. Boxed wisely left the be-everything job to Amazon, choosing a niche that has led to an average order higher than most of its competitors -- Boxed shoppers typically spend more than $100 each time they shop.

Final Foolish takeaway
The retail industry is probably the most competitive space, with Wal-Mart dominating the traditional segment by employing an "every day low prices" strategy, Costco controlling the warehouse segment, and Amazon.com ruling the online space. Boxed demonstrated that it is possible to build out an economic moat from zero, even in such a fierce landscape. To achieve this, the key ingredients involve focusing on a specific -- preferably unserved -- niche, developing for mobile, and keeping a light and efficient logistics system.

This segment is from Thursday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

For General Electric , the time for natural gas demand to grow on a global scale is now. Over the next 12 years, the company expects global demand to increase by 36%. One way energy analyst Taylor Muckerman thinks investors can get involved in the international growth is with Clean Energy Fuels . The company and its subsidiaries have already inked a few deals in China, and there doesn't appear to be any reason why this won't continue. After early success in the U.S. with companies like United Parcel Service and Waste Management , China could be the next logical area of growth.

Shares of SodaStream have plunged 14% since the at-home carbonation specialist posted mixed quarterly results a little more than one month ago.

But in the following video, the Fool's Steve Symington reminds investors why SodaStream's results weren't nearly as bad as they seemed and why the stock looks incredibly cheap at today's levels -- so much so, in fact, that he decided to take the opportunity to buy shares of SodaStream for the first time in his personal portfolio earlier this week.

Check out the video below to get Steve's full take, then feel free to weigh in to let us know whether you think SodaStream is a buy now.

Actress Gal Gadot will play the mighty Amazon in Batman vs. Superman. Source: DC Entertainment.

After weeks of speculation, Time Warner's DC Entertainment has found its Wonder Woman: Israeli actress Gal Gadot.

Confused? You aren't alone. Gadot's filmography is limited to a handful of TV spots and three appearances in the six films of The Fast and the Furious franchise. She plays the former Mossad agent Gisele, who becomes a trusted member of Vin Diesel's crew of car thieves.

Her presence did nothing to hurt the box office. Fast & Furious put up 2009's seventh-best opening weekend on the way to $363.1 million in worldwide grosses. Her 2011 follow-up, Fast Five, topped $600 million worldwide after a 15-week run at the box office while this year's Fast & Furious 6 earned just short of $789 million over the same period. 

Now she graduates from car thief to one the world's most famous superheroines -- and with Lynda Carter's blessing, no less.

Congratulations to Gal Gadot! http://t.co/lRu7tvr0RB

— Lynda Carter (@RealLyndaCarter) Dec. 4, 2013

Predictably, the choice has brought mixed reactions. You'll find some of the best here, courtesy of Alex Zalben over at MTV News. What am I expecting from Gadot? More than a cameo, that's for sure. Here's what director Zack Snyder had to say about casting her for Batman vs. Superman:

Wonder Woman is arguably one of the most powerful female characters of all time and a fan favorite in the DC Universe. Not only is Gal an amazing actress, but she also has that magical quality that makes her perfect for the role. We look forward to audiences discovering Gal in the first feature film incarnation of this beloved character.

Big words from a filmmaker with a big budget, and now, a cast that includes the Justice League's Big Three: Batman, Superman, and Wonder Woman. Add four more heroes and you've got a full team. Introducing them one film at a time, as Marvel and Walt Disney  did with The Avengers, probably isn't necessary thanks to the success of Arrow.

But don't take my word for it. Look at the ratings. This week's episode, which introduces Grant Gustin as police scientist Barry Allen (i.e., the Flash), drew 3.165 million viewers -- a season high.  Stephen Amell's emerald archer is also fit for a Justice League film, seeing as his character is already on a collision course with infamous DC Universe villains such as Brother Blood, Ra's al Ghul, Professor Ivo, and Deathstroke. Using Arrow and a planned Flash TV spinoff to develop both characters could take pressure off Snyder and the brass at Warner Bros. films to fund expensive "origin" movies that would otherwise be needed to tee up up the team up.

Maybe that's the point of all this. Maybe, in adopting Batman vs. Superman as the code name, DC is disguising the truth that it's next movie is about more than the Man of Steel and the Dark Knight. Rather, it's shaping up to be the origin of the Justice League.

You can't have the JLA without Wonder Woman. In casting Gadot, Snyder and DC have just solved that problem.

In an effort to boost investor sentiment, J.C. Penney recently announced that comparable store sales rose 10.1% in November.

Why, then, did the stock fall more than 4% on the news?

In the following video, the Fool's Steve Symington says it helps to consider J.C. Penney's dismal comparable-store sales results during the same year-ago quarter, which set an incredibly low bar for the struggling retailer to beat.

In fact, Steve notes, there are a number of reasons these seemingly positive results are actually worrisome. Check out the video below to get his full take, then feel free to weigh in to let us know whether you think shares of J.C. Penney are a buy at today's levels.

There's been a lot of financial improvement for Chinese solar companies this year, but not everyone has enjoyed the same level of success. For every Trina Solar and Canadian Solar -- which are now solidly profitable -- there's a money-losing JA Solar or Yingli Green Energy .

ReneSola's results yesterday fell somewhere in the middle. Revenue jumped 11.1% sequentially to $419.3 million and gross margin was up to 8.1%, but net loss was $200.3 million when you include a $194.7 million impairment charge for a polysilicon factory upgrade gone wrong. If we adjust for that, the company's loss was just $5.6 million, within shouting distance of a profit.  

How does ReneSola stack up?
One of the challenges for ReneSola is that it was a major polysilicon and wafer producer but not a major module maker until recently. When the polysilicon and wafer business became oversupplied, margins dropped and it didn't have anywhere to sell product. So, the transition to a module maker has increased margins, but they still lag behind industry leaders.

Just how does ReneSola stack up to the leaders and laggards I mentioned above?

Note: Adjusted or non-GAAP loss.

You can see that gross margins are even lower than JA Solar and Yingli Green Energy and in the fourth quarter management only expects gross margin to be 9% to 11%. That's not likely enough to swing ReneSola to a profit.

Foolish bottom line
ReneSola has made strides in 2013, but it's not the best Chinese solar stock by a long shot. I like both Canadian Solar and Trina Solar better, partly because they both have exposure to project development.

Solar is all about risk vs. reward right now and ReneSola is just too high a risk for me.

Wireless carriers are always trying lure customers by touting the faster networks and better monthly plans, and AT&T and T-Mobile are in the middle of a fight for both right now.

Source: T-Mobile.

Expanding the wireless domain
Reports surfaced this week that AT&T may be considering purchasing Verizon Communications' 700MHz A block wireless spectrum, the same block T-Mobile is likely pursuing. T-Mobile just raised about $4 billion through a second stock offering and sale of senior notes, which the company could use in bidding for the wireless spectrum. If AT&T and T-Mobile both want the spectrum enough, they could start a bidding war that ends with the spectrum going to the one with the deepest pockets.

Verizon paid more than $2 billion for the spectrum block, so it likely will look for at least the same amount, if not more. The company has been quick to note that if it doesn't get the price it wants, it'll use the spectrum for its own network. BTIG analyst Walter Piecyk recently said T-Mobile could spend about $3 billion purchasing spectrum from Verizon.

T-Mobile is the smallest of the four major U.S. wireless carriers, and buying up additional spectrum would allow the company to handle additional customer data usage. For AT&T, the purchase could mean holding on to as much wireless spectrum as possible to retain an advantage over the smaller -- but quickly growing -- T-Mobile.

Pricing wars
Buying up spectrum isn't the only way the two carriers may battle it out. This week AT&T announced that starting Dec. 8 it will reduce monthly charges for certain no-contract subscribers. The plan is called Mobile Share Value and customers who buy a phone without a subsidy, sign up for AT&T Next, or bring their own device to the network will pay up to $15 less per month than they previously did.

The move is an effort by the carrier to compete directly with T-Mobile's no-contract plans. But as The Verge pointed out, some of the AT&T plans with multiple users on a shared plan will actually see their monthly prices go up. Overall, though, the pricing should help some AT&T subscribers save money, but still won't quite match T-Mobile's pricing deals.

Foolish final thoughts
AT&T's change in pricing strategy for some customers shows just how much T-Mobile is starting to influence the other U.S. wireless carriers -- no matter how big they are. T-Mobile is still the dark horse right now, but its pricing model has started to resonate with customers, and in the third quarter of this year it gained more than 1 million net customers, including prepaid subscribers.

T-Mobile still falls short of both AT&T's network coverage and number of customers, but AT&T's pricing change and its possible competitive bid against T-Mobile for wireless spectrum shows that the "uncarrier" strategy may be paying off. Investors should watch how the spectrum bid plays out and also look for AT&T's next quarterly earnings for any news on how the contract changes have helped or hurt the company. AT&T may have made the changes simply in order to keep current customers from jumping ship, rather than trying to win over new ones who are looking for a better mobile plan deal.

Brace yourselves, Universal Display investors, because Apple just took another big step in your direction.

Remember, last month it came to light that Apple and LG Display were close to signing a supply agreement for small, flexible OLED screens, presumably for use in an iWatch-type device to be launched in late 2014.

Now, the folks over at Patently Apple just highlighted a newly published patent application outlining Apple's invention of OLED displays with integrated thermal sensors.

But first, some background...
Before we tackle what this means, does anyone remember Apple CEO Tim Cook's curious stance on OLED back in February?

Specifically, that's when shares of Universal Display plunged after Cook absolutely bashed the OLED specialist's flagship phosphorescent display technology.

Sure, you could argue Cook was a teensy bit biased, especially considering archrival Samsung has long used OLED displays as a differentiating factor for its competing Galaxy devices.

And Cook pulled no punches at the time, railing that -- at least compared with Apple's own Retina displays -- OLED color saturation is "awful." What's more, he asserted, "If you ever buy anything online and really want to know what the color is, as many people do, you should really think twice before you depend on the color from an OLED display."

Even so, I found it curious at the time that Apple had just quietly hired a prominent OLED specialist away from LG Display -- a seemingly contradictory move to Cook's stance against the versatile technology.

Cook foreshadowed this moment
Then in April, Cook once again piqued my interest with the following comments during the Q&A portion of Apple's fiscal second-quarter conference call:

Some customers value large screen size; others value also other factors such as resolution, color quality, white balance, brightness, reflectivity, screen longevity, power consumption, portability, compatibility with apps and many things. Our competitors had made some significant trade-offs in many of these areas in order to ship a larger display. We would not ship a larger-display iPhone while these trade-offs exist.

As a result, and noting some would argue OLED already held the advantage in a number of the above categories, I couldn't help but wonder whether Cook was indirectly hinting at improvements in the works with Apple's pending implementation of OLEDs in its devices.

Heck, I even wrote at the time, "While the iPhone's LCD Retina display may currently have the edge [with] accurate color reproduction, brightness, and white balance, I can't imagine Apple -- with all its vast resources -- would find it that difficult to make the necessary tweaks to an OLED screen."

What this Apple patent means
And that's where Apple's latest patent comes in.

So what are the "integrated thermal sensors" all about? In short, Apple realized OLED pixels operating at higher temperatures can emit slightly different light from pixels operating at low temperatures. This, in turn, can result in inconsistent colors -- and, yes, "awful" color saturation -- for displays with non-uniform temperature gradients.

But wait, you say, aren't OLED displays supposed to be cool to the touch? Well... yes. But that doesn't eliminate changes in ambient environmental temperatures (like partial sunlight, for example) or heat generated by the components underlying the OLED display.

As a result, Apple's integrated thermal sensors should be able to dynamically adjust the light output of each OLED, which in effect resolves Tim Cook's beef with the technology.

With the most significant of the aforementioned "trade-offs" eliminated, Apple would then be free to take advantage of all the compelling design possibilities enabled by the implementation of OLED displays, which can be made to be flexible, transparent, and nearly unbreakable.

That's why I remain convinced that shareholders of both Apple and Universal Display stand to be handsomely rewarded as the two companies usher in a new era of electronic displays.

Share repurchases are a tried and tested way of increasing earnings by reducing the share count. Dillard's has been aggressively and consistently using this method while competing with the likes of Macy's and Kohl's . Along the way, Dillard's has managed to effectively navigate the negativity persisting in the retail sector and this company stands out from the crowd.

Dillard's share price has been going up ever since it started buying back shares as shown below. Through buybacks, Dillard's has returned cash to its shareholders and also increased its earnings which has led to optimism on the Street. Looking forward, it looks like Dillard's shares might continue to rise.

DDS Shares Outstanding data by YCharts

Strong results
Dillard's recently announced estimate-beating third-quarter results. Its comparable store sales, or comps, grew 1% compared to the same quarter a year ago. Dillard's saw similar growth in its construction business and as a result, consolidated revenue increased marginally by 1.4% versus last year to $1.51 billion. 

As a result of positive comps combined with cost-cutting measures and increased share buybacks, Dillard's earnings per share grew 17.6% versus the year-ago period to $1.13, which beat the consensus estimate by $0.13 per share. This was the third consecutive quarter with an earnings beat.

Going forward, Dillard's strong performance is expected to sustain and analysts are bullish on the company. They estimate that it will earn more than $8 per share in 2015, up 10% from the 2014 estimate.

Financially sound
Another thing in Dillard's favor is its debt-to-equity ratio, which is the lowest in the history of the company and also the lowest among the three companies discussed here. This is why Dillard's is less vulnerable to risks such as rising interest rates or a change in its credit rating. This comes despite its aggressive and continued share repurchases that we discussed earlier. In addition, the company anticipates that it will have no short-term borrowings at fiscal year-end 2013.

DDS Debt to Equity Ratio (Quarterly) data by YCharts

In comparison, Macy's debt to equity ratio is almost 7 times that of Dillard's and Kohl's ratio is almost 2.5 times that of Dillard's as shown in the chart above.

Macy's and Kohl's: How the competition is performing
Macy's has performed pretty well. It reported a third-quarter revenue increase of 3.5% to $6.28 billion and a 31% gain in earnings per share versus the same quarter in the prior year. This brought in an element of relief for investors after the tepid second-quarter figures. This growth was on the back of broad-based strengthening across all major categories of business for Macy's and management said there were very few weak areas.

Macy's reiterated its guidance for the fall season, expecting comps growth of 2.5%-4% for the back half of the year and annual earnings per share in the range of $3.80-$3.90. Macy's is confident of a good holiday season ahead.

Kohl's, on the other hand, didn't perform well as it missed consensus estimates. It reported a comps decline of 1.6%, accompanied by a revenue decline of 1% for the third quarter to $4.44 billion. 

Kohl's missed the consensus estimate on earnings as well and its adjusted earnings came in at $0.81 per share, declining 11% versus the same quarter a year ago. Earnings were lower due to lower sales and gross margins, which contracted 60 basis points due to lower revenue.

Going forward, Kohl's expects sales to decline in the range of 2%-4% and comparable-store sales to dip in the range of 0%-2% in the fourth quarter, which aren't good signs for investors.

Takeaway
Hence, investors should avoid Kohl's as it is declining. However, both Macy's and Dillard's look like good bets and both have their own attractive points. Macy's is set to perform well in the holiday quarter and the company also has a good dividend yield of 2%.

In comparison, Dillard's looks strong financially when stacked against Macy's and Kohl's. In addition, Dillard's has been aggressively buying back shares and it is the cheapest of the three with a P/E ratio of 11.6. Dillard's earnings have been growing well and more earnings growth is expected. Keeping all of these factors in mind, Dillard's looks like a good pick for conservative investors.

Demand for liquefied natural gas, or LNG, is set to rise faster than supply during the next few years. This is likely to lead to higher profits for all companies operating within the industry. Indeed, a research note published by Bank of America in November highlighted the fact that many major LNG projects will not come online until 2015, even as demand for the fuel accelerates.

Rising cost of production
Royal Dutch Shell (NYSE: RDS-B) is more aware than most about the rising cost of LNG production. The company owns a 25% share in the Gorgon LNG project, which is majority owned by Chevron (NYSE: CVX). Unfortunately, the cost of getting Gorgon into production has spiraled out of control, from the initial estimate of $37 billion, projected back in September 2009, to a current figure of $52 billion. This extra $15 billion is not small change, even for Chevron and Shell.

These high costs, according to some, are due to the high cost of labor within Australia along with a strong Aussie dollar. Poor rates of productivity have also seen the first expected date of export from the site pushed back to the first quarter of 2015 instead of late 2014.

Nonetheless, with demand for LNG set to rocket, major integrated oil and gas companies would be silly to let this opportunity pass them by. So, Shell is using its imagination and going offshore.

In particular, Shell is constructing the world's first floating liquefied natural gas facility, Prelude FLNG, off Australia's northwest coast. The scale of this project is, in a word, huge: The Prelude vessel is going to be longer than 450 feet but with as much capacity as a conventional plan, albeit with a lower price tag. Prelude is the first of many FLNG vessels and should allow Shell to participate in the LNG boom while cancelling, or scaling back, some of its onshore projects.

According to analysts at Deutsche Bank, a conventional, onshore LNG plant would cost around $3.6 billion to build for every million tonnes of output per year. In comparison, a floating project would only cost $2.9 billion to construct for a similar output.

Rapidly rising demand
Nonetheless, within Asia there are currently a number of factors driving the demand for LNG higher. For example, all 50 nuclear reactors remain shut down within Japan, and South Korea is having issues with nuclear safety certificates. What's more, China has warned that the country may face natural gas shortages this year. All in all, these factors indicate that demand for LNG this winter could exceed supply.

It would appear that this demand is already having an effect on the market as ICIS, the world's largest petrochemical market information provider, recently reported that the LNG contract for January delivery closed at $18.78 per million British thermal units, the highest monthly level ever recorded by the ICIS.

Transport
With demand rising faster than supply, it is likely that buyers will want their cargoes delivered quickly, and they'll be willing to pay a premium for this, good news for Golar LNG (NASDAQ: GLNG) and Teekay LNG Partners (NYSE: TGP). Now, unfortunately, Golar reported a third quarter EBITDA loss of $3.3 million. However, according to management, this loss was due to the fact that two of the company's ships, Viking and Gimi, were idle for a large part of the third quarter. Nonetheless, with demand for LNG exploding, Viking soon found a charter at the beginning of the fourth quarter. Although, due to Gimi's size and age, the vessel could not find a customer and had to be laid up.

Still, Golar took delivery of two new boats during October and has plans for an additional four to be delivered in 2014. With activity in the LNG market increasing, Golar should not have trouble finding customers for these ships, and growth should ensue.

Meanwhile, Teekay reported rapid growth during the third quarter with distributable cash flow expanding 12% year on year. The company benefited from the acquisition of another tanker and an investment in European, Exmar LPG. Teekay has acquired a 50% share of Exmar. What's more, it would appear as if Teekay's growth is set to continue as the company has an additional ship expected to be delivered, well, around now; the this ship is already contacted out on a four-year contract.

In addition, including orders from Exmar, Teekay has 12 mid-sized carriers on order for delivery through 2018, with growth expected in the LNG market and several huge new LNG production projects being completed between now and 2015, it would appear that these new vessels will arrive in a market where demand for their services is high. I should also mention that Teekay is planning to sell some older vessels in its fleet, which should improve efficiency when the new boats come online.

Weatherford International , a large multi-national oil service company, has clearly shown it can disappoint shareholders. High-profile accounting issues and legal woes have made many wary of the stock. But there is evidence that most of the troubles may be over. Can a return of investor trust take Weatherford shares higher? Or are more dependable competitors such as Baker Hughes or Halliburton  better investment considerations? Let's take a look.

Weatherford's string of confidence destroying issues
Weatherford has reported some disturbing news over the last few years, with accounting problems being the most unsettling. Material inaccuracies were found in the company's income tax calculations in 2011. Though remedial actions were taken, the firm was forced to restate previous financial statements again when further errors appeared in 2012. There were also other bookkeeping missteps. A $79 million overstatement of a long-term contract in Iraq was unearthed in 2012. Correcting this miscalculation proved the project, formerly thought to be profitable, a money loser.

The accounting miscues alone would be alarming enough but Weatherford also faced serious legal challenges. Multiple investigations by The U.S. Department of Justice and the Securities and Exchange Commission, among others, looked into the company's participation in the United Nations' oil-for-food program with Iraq, possible improper sales within sanctioned countries, and potential non-compliance with the Foreign Corrupt Practices Act.

While this litany of issues has understandably pressured the company's stock, there are signs things may be getting better. Weatherford strengthened its accounting function, including the hiring of more than 25 highly qualified tax professionals, with no major problems reported since 2012. Progress has also been made on the legal front. The company recently resolved governmental investigations with a $253 million settlement.

Weatherford's results will ultimately decide
Without any accounting or legal overhangs, the oil service provider's results will end up determining its worth. Unfortunately, Weatherford's recent quarterly results weren't very good. Revenues were held flat and operating income declined 24%, year over year, but there were some bright spots.

Overseas business did very well. Revenues were up 17% in the Middle East and North Africa region year over year, and operating income jumped 92%. Sales and income from Europe, Sub-Saharan Africa, and Russia were the highest ever with revenues up 10% and profits increasing 17% from those areas.

Good international results couldn't offset tough conditions in North America, however. The region's quarterly revenues, accounting for over 41% of total sales, dropped 7% from 2012, and operating income fell 20% with intense pricing pressure and falling demand causing the slump.

Surprisingly, given Weatherford's travails, the stock seems reasonably priced. Trading with a market value around 9.16 times trailing 12-month operating cash flows and an enterprise value to revenue multiple of about 1.34, its valuation looks pretty close to industry averages. This may mean the company needs to both regain investor confidence and boost results to achieve a meaningful share price advance.

A dependable peer with excellent performance
Baker Hughes, another leading oil service provider, has proven it can post commendable results. The company recently reported record quarterly revenues that were up 8% year over year with net income rising 22%.

North American revenues, which account for around 49% of total sales, increased a strong 4%, and pre-tax profits grew around 2% -- excellent results in the listless but highly competitive U.S. land-based drilling market. The gains were helped by busier and more lucrative service activity in the Gulf of Mexico.

Baker Hughes' results outside of North America were exemplary. Sales increased 14% year over year, driven by worldwide growth. The international projects were especially fruitful with profits jumping 38%, helped by both more work and better margins.

Baker Hughes shares look conservatively priced, given the company's recent performance. At around 7.81 times trailing 12-month operating cash flow with an enterprise value to sales ratio of roughly 1.30, investors may be overly cautious about the company's reliance on North American oil exploration activity.

A top-notch firm with plenty of investor confidence
Halliburton shareholders don't seem to have many concerns. One of the world's largest oil service providers, its stock looks confidently priced. Trading at about 10.41 times 12-month trailing operating cash generation with an enterprise value of 1.83 times revenues, the valuation suggests ample investor conviction.

Recent results may show why. Halliburton posted record revenue in its latest quarter, up 5% from 2012, with a 16% increase in operating income. Sales gained due to improved demand in all international regions, headed by a record setting performance in Europe, Africa, and Russia. While strong execution worldwide helped boost income, improved profitability in North America was especially impressive.

Despite a North American revenue drop of around 2% year over year, the region's operating profit climbed a lofty 18%. Cost controls and higher drilling efficiencies more than offset pricing pressures from an intensely competitive environment. Halliburton expects even better returns in North America as more business in the Gulf of Mexico develops.

Final thoughts
Weatherford investors have endured a lot of disappointment but the worst could be over. The company may finally be able to go from fixing past problems to improving future results. But to ensure meaningful share price gains, the oil service provider will probably need to match performances posted by peers like Baker Hughes and Halliburton. While it's not clear if Weatherford can meet that challenge, it appears it will at least have the chance, which should be very good news for investors who've coped with the company's tainted and tumultuous past.

Animal health company Zoetis has had a lackluster year since its spinoff and IPO from Pfizer , rising barely more than 1% since February.

Meanwhile, investors who scooped up IPO shares of Zoetis at its initial price of $26 are sitting on a 21% gain, following some volatile bounces in a wide 52-week range from $28.81 to $35.42.

Source: YCharts.

What three investing lessons can we learn from Zoetis' flat performance in 2013? Does this company have a bright future ahead of it in 2014?

Lesson No. 1: Spinning off non-core businesses can boost a company's bottom line
Pfizer's spinoff of Zoetis into a new publicly traded company was a brilliant move for three reasons:

• Zoetis' animal health business didn't fit in with Pfizer's other pharmaceutical businesses.

• A spinoff, rather than an outright sale, helped Pfizer avoid a large tax bill.

• By allowing Pfizer shareholders to exchange their Pfizer shares for Zoetis shares (at a 1:0.9898 ratio), Zoetis started out with a more established investment base than other newer companies.

As a result of Zoetis' IPO, Pfizer decreased its full-year revenue guidance by $4.5 billion and its full-year earnings by $0.04 per share.

However, spinning off the company was an essential part of Pfizer's strategy to sell other non-core businesses, such as its Capsugel unit to KKR in 2011 and its baby food unit to Nestle earlier this year. All these sales and spinoffs were aimed at coping with the loss of Pfizer's blockbuster cholesterol drug, Lipitor, which generated peak sales of $13 billion in 2011, the same year it lost U.S. patent protection.

Pfizer's strategy is now being mirrored by Novartis . The company recently announced that it was ready to sell its animal health unit, which generated $1.1 billion in revenue last year, to interested buyers, including Bayer, Merck , and Eli Lilly .

If Bayer acquires Novartis' animal health unit, it would boost its market position from fifth place to either third or fourth, with combined annual veterinary sales of $2.8 billion. Meanwhile, if Merck were to acquire Novartis' business, it could overtake Zoetis' top spot by boosting its annual revenue from $3.4 billion to $4.5 billion. Lilly could also jump from third place to second place, with its annual revenue climbing from $2.8 billion to $3.9 billion. Zoetis, by comparison, generated $4.2 billion in revenue last year.

Due to those high stakes, Novartis' animal health segment could fetch a high price tag -- more than $4 billion.

Lesson No. 2: Zoetis is still the dominant leader in animal health
Until such a deal closes, however, Zoetis is still the top name in animal health. Simply compare its quarterly revenue growth against that of its closest competitors, Merck and Eli Lilly.

Source: Company quarterly reports.

Zoetis has also been growing globally, reporting positive sales growth in all four of its global regions.

Source: Zoetis Q3 report.

Zoetis reported strong demand for livestock products, such as treatments for cattle, swine, and poultry, although sales of companion animal products rose across all regions as well.

Lesson No. 3: China's demand for pork could be the key to Zoetis' future
Although Zoetis' Asia-Pacific business is its smallest and slowest growing segment, I believe that investors should keep a close eye on its growing presence in China.

In August, Zoetis' joint venture in Jilin, China announced the launch of Rui Lan An, a specialized swine vaccine for porcine reproductive and respiratory syndrome. PRRS causes reproductive failure during late-term gestation in sows and respiratory conditions in pigs of all ages. Back in 2006, a new strain of PRRS emerged, adding high fever, skin discoloration, and a high fatality rate between 20% and 100% to the already devastating disease. As a result, roughly 20 million pigs (3% of China's swine population) must be culled annually.

China's massive demand for pork fueled Hong Kong-based Shuanghui's $4.7 billion purchase of Smithfield Foods, the world's largest hog and pork producer, earlier this year. However, China's food safety problems, such as the 10,000 diseased pigs that washed up in Shanghai in March, are causing the public to seriously question the ability of the government to guarantee their safety.

Therefore, China is the ideal market for Zoetis to thrive in, since it has already proven its ability to address one of the worst problems facing pig farmers in the country.

Although Zoetis has been in China since 1995 as part of Pfizer, its operations are still fairly small and have plenty of room to grow. Therefore, I wouldn't be surprised if the company's Asia-Pacific sales eventually overtake those of its other regions in growth and importance.

The Foolish takeaway
Looking ahead, I believe Zoetis investors should keep an eye on two things -- if the sale of Novartis' animal health unit gives its rivals a boost that could threaten its leading position in the market, and its growth in Asia, which will be fueled by the simultaneous demand for more meat and better food safety.

In closing, although Zoetis has gotten off to a very slow start in 2013, I think investors should have some patience with the stock and consider it a solid long-term investment.

Nitrogen fertilizer producer CF Industries Holdings is a company that agriculture investors should pay attention to. CF Industries may be flying under the radar of many investors since it's having a tough time keeping profits afloat during a poor operating environment for fertilizer. Despite this, CF Industries deserves serious consideration because it's making big moves that should benefit investors greatly over the long term.

Business is better than it seems
Investors may hesitate to consider CF Industries in light of the struggles it's having this year. That's due to some severe headwinds facing the global fertilizer market. Global nitrogen prices have declined considerably in addition to the company having to endure the traditional seasonally slow third quarter. In all, CF Industries' profit is down through the first nine months of the year. But even amid such a difficult operating environment, CF Industries saw profits drop 10% through the first three quarters, which represents an entirely manageable decline.

Going forward, CF Industries' management remains entirely confident in its future. That's because of the favorable underlying economics of the agriculture industry that still remain intact. Despite poor fertilizer pricing, CF Industries continues to see strong product demand. Moreover, management points to the company's low-cost provider status in the North American market as a key catalyst for rising future profits.

Shaking things up
Under pressure from noted investor Dan Loeb to increase its paltry dividend, CF Industries announced it would evaluate its dividend, and over the next three years expects to devote $2 billion to capital returns and growth efforts. Loeb, famous for his investor activism, took a 1.5% stake in CF Industries and earlier this year the company significantly increased its dividend, from $0.40 per share to $1 per share.

In addition, CF Industries announced several strategic agreements with fellow agricultural nutrient supplier Mosaic . CF Industries will sell its phosphate mining and manufacturing business to Mosaic for $1.4 billion. Furthermore, CF Industries will provide 600,000 to 800,000 tons of ammonia per year to Mosaic. This should pay dividends for both companies, as each will be able to enhance what they do best. CF Industries will be able to focus on its nitrogen business, and the agreement supplements Mosaic's already considerable phosphate operations.

Not only is CF Industries evaluating its dividend to appease investors going forward, but the company is also in preliminary talks with advisors to create a Master Limited Partnership. MLPs have their earnings shielded from corporate taxes so long as they operate in a natural resource business. That, of course, goes without saying, since CF Industries is the largest maker of nitrogen fertilizer in the United States. This shouldn't be a difficult endeavor, since CF Industries is currently the owner of the general partner of Terra Nitrogen , a fertilizer MLP itself.

It seems plausible that Terra Nitrogen and a newly formed MLP from CF Industries would share many characteristics, primarily a huge distribution. Terra Nitrogen is also seeing difficult business conditions this year. Net sales and net earnings are both down through the first nine months of the year. This is having a see-saw effect on the company's distribution. Terra Nitrogen distributed $2.02 per unit in November, down nearly half from the previous quarter's payout. It's unclear whether an MLP spun off from CF Industries would carry the same level of volatility in its own distribution.

Keep an eye on CF Industries
Nitrogen fertilizer is a tough market right now due to falling prices. This is having a negative effect on most industry players, so naturally CF Industries is not immune to broader economic difficulties. However, CF Industries faces a bright future. The underlying conditions of the fertilizer industry should reverse soon thanks to strong worldwide demand. CF Industries is taking significant steps now to reap future benefits, including its promising partnership with Mosaic.

Investors stand to win with CF Industries, especially if the company funnels its assets into an MLP. That would give investors the chance to earn hefty distributions as the underlying economics of the fertilizer industry improve. As a result, investors interested in the agriculture should give consideration to CF Industries.

Worried about CF Industries but enjoy yield? Try these 9 out for size

For many consumers, last week marked the beginning of the widely anticipated 2013 shopping season.

But while many retailers fell all over themselves to bring customers through the door with big discounts, the Fool's Steve Symington offers four companies that don't need to sacrifice margins to boost their top lines.

In the video below, Steve describes why he thinks both Under Armour and lululemon athletica will be able to maintain their torrid pace of growth in the athletic apparel space, and how Michael Kors and Coach should each reward shareholders in different ways through the world of fashion apparel.

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.

Lots to discuss today, but before I go any further, I'd like to salute Nelson Mandela, who passed away yesterday. His human rights achievements are universally recognized, but check out this review of his unsung economic legacy, courtesy of Bloomberg Businessweek.

Following five consecutive days of losses, stocks are finally getting a lift this morning, ostensibly on the back of a strong November employment report. The S&P 500 and the narrower, price-weighted Dow Jones Industrial Average are up 0.85% and 0.82%, respectively, at 10:17 a.m. EST.

The U.S. economy added 203,000 jobs last month, as the unemployment rate fell three-tenths of a percentage point to 7%, the lowest rate in five years. Both figures surpassed economists' median forecast. Through November, monthly payroll growth has averaged 189,000, above than last year's 183,000 and the highest figure since 2005, when the economy added 207,000 jobs per month.

Oddly, yesterday, lower-than-expected initial jobless claims figures for the most recent week were blamed for a fall in stock prices on the basis that a strengthening economy will prompt the Federal Reserve to reduce its monthly bond purchases earlier than anticipated. Today, however, it appears that traders are willing to embrace the "growth narrative" instead -- hey, economic growth and lower unemployment must favor increased consumer spending, and that is surely a boon for corporate profits.

China's bitcoin slap-down
Bitcoin has gotten a lot of press this week, so I think it's worth saying a few words about the cryptocurrency. It appears that bitcoin proponents had hoped that China would continue to look on the digital currency with a benevolent eye, but those hopes were dashed when authorities declared that it is a "virtual commodity that does not share the same legal status of a currency. Nor can, or should, it be circulated or used in the marketplace as a currency."

In the space of a year, China has become one of the most active markets for bitcoin trading, and that may well continue. The Chinese have a taste for gambling and the government confirmed its citizens "have the freedom to participate in Bitcoin transactions as a kind of commodity trading activity on the Internet, provided they assume the risks themselves." Chinese banks, on the other hand, will be restricted from using bitcoins.

In response to the news, the price of a bitcoin fell from a high of $1,240 to $870 intraday. That's real volatility! Bitcoin may end up gaining widespread acceptance and revolutionizing payment systems, but, for now, it is mainly the province of lunatics, fraudsters, and speculators. I would strongly urge investors not to view a foray into this market as any different from a trip to Vegas and, as such, it should be kept entirely separate from one's investment activities.

If you are curious about bitcoin, make sure to educate yourself properly. Reviewing the bitcoin website is a good place to start; the FAQ section contains the following warning: "You should never expect to get rich with Bitcoin or any emerging technology. It is always important to be wary of anything that sounds too good to be true or disobeys basic economic rules."

Caveat emptor!

This segment is from Thursday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy. 

With its Sabine Pass liquified natural gas export facility estimated to come online in 2015, Cheniere Energy, Inc. continues lining up deals for its Corpus Christi project. Once approved for non-FTA exporting, the facility should have the capacity to export 2.1 billion cubic feet per day. A portion of that will now be going to Pertamina, a state-owned energy company in Indonesia. The deal will last from 2018 until 2038. With the first four trains of the Sabine Pass, operated by Cheniere Energy Partners , facility already approved, further good news out of Corpus Christi should continue driving Cheniere Energy's stock price higher. 

Source: CVR Refining.

CVR Energy has been able completely turn its balance sheet around. The company went from being $487 million in debt to having $210.7 million in cash over the past five years.

CVR Energy may have turned its balance sheet positive with $887.1 million in cash and $676.4 million in debt, but its YTD stock performance has been dismal. This can be attributed to shrinking crack spreads and the 53-day shutdown at its refinery in Coffeyville, KS, which has sent CVR's earnings lower year over year.

Ouch
The refinery in Coffeyville is owned by CVR Refining LP , which CVR Energy has a 71% stake in. CVR Refining is an MLP with a 5% distribution, so CVR Energy receives 71% of that payout. The refinery had a capacity of 115,000 bpd, so taking that out of the picture puts a huge damper on CVR Refining's distribution and thus CVR Energy's income.

CVR Refining operates two refineries: the Coffeyville refinery, and a 70,000 bpd refinery in Wynnewood, OK. With the majority of CVR Refining's capacity taken out of the picture, you can see why CVR Energy has been taking a hit.

Now that the refinery is up and running again, CVR Energy and CVR Refining investors have something to look forward to. CVR Energy sees crude differentials widening again going into the fourth quarter, which is supported by E&P companies like Kodiak Oil & Gas stating that seasonality trends tend to increase the differential as refineries shut down for maintenance.

Refining
CVR Refining will be able to purchase crude oil at a lower price for the next few months as the differential widens, a move that will boost its margins. CVR Refining has been doing pretty well considering the circumstances, posting revenue of $6.323 billion with net income of $700.6 million in the first nine months of 2013. This is compared to net income of $540.7 million on $6.466 billion in revenue for the first nine months of 2012. 

While CVR Refining's latest quarter was dismal due to the refinery shutdown, it still has done pretty well as a standalone entity since its IPO. The reason why CVR Energy wasn't able to profit as much as investors would think is because CVR Refining's distributions were smaller than expected.

Back in 2010, CVR Refining (which was still a part of CVR Energy at that point) invested roughly $500 million into upgrading its refineries. Now that it has a positive balance sheet, it can upgrade and improve its operations once again. This will help it increase its margins and revenue.

With 350 miles of pipelines and a crude gathering system already in place, CVR Refining can expand both its refining and gathering capacity to grow beyond crack spreads. 

Where's the love?
On a side note, CVR Energy is also invested in making fertilizer through CVR Partners LP , an MLP with a 10.11% distribution. CVR Partners makes a fertilizer out of UAN, a combination of urea and ammonium nitrate.

CVR Partners converted approximately 70% of its NH3 ammonium production to UAN, allowing it to make more money per ton of fertilizer. CVR Partners sees an additional $70 per ton of fertilizer if it converts its last NH3 production into UAN. UAN is currently selling at a premium to traditional fertilizer, and CVR Partners wants to make the most of that premium.

As CVR Partners continues its switch to 100% UAN, it will earn more. This will in turn allow it to pay out a larger distribution. CVR Energy owns approximately 53% of CVR Partners and profits off of its distribution.

Final thoughts
CVR Energy is a holding company with two segments: refining, which is done through CVR Refining, and UAN fertilizer production, which is done through CVR Partners. Both are MLPs that pay the majority of their distributions to CVR Energy.

CVR Energy pays out a large 8% yield and is a way to play two different industries at once; in this sense, it's almost like a mini-MLP ETF. CVR Energy has had a rough 2013, but looking ahead the skies look a little more clear. As CVR Partners fully upgrades its fertilizer production to UAN and CVR Refining experiences better crack spreads in the fourth quarter with both refineries up and running, both segments can start increasing their distributions again.

Potash is a critical part of the global fertilizer market, and the industry faces falling prices and excess supply. In 2013 copper and iron ore prices have fallen steeply. Now more miners would like to turn to potash as a way to escape traditional markets where slowing Chinese industrialization is reducing demand. 

BHP Billiton (NYSE: BHP) approved $2.6 billion of work on its Jansen potash project, even though it has a negative present value at current market rates. With prices forecasted to be around $330 per tonne in 2014, the potash industry is facing a big drop from the $390 per tonne it saw in the majority of 2013.

Get ready for falling profits
PotashCorp's (NYSE: POT) decision to lay off 1,045 workers and take a minimum $70 million severance charge should not come a surprise. In the first three quarters of 2012 the company brought in $6.29 billion in revenue and $1.93 earnings per share (EPS). In the first three quarters of 2013 its revenue fell to $5.76 billion and its EPS fell to $1.79.

The company is aiming for lower costs in the midst of the current downturn. By continuing its Rocanville expansion, reducing production at its Cory facility, and stopping production altogether in Penobsquis, New Brunswick, PotashCorp hopes to achieve cost savings of $15-$20 per tonne in 2014.

Regardless, the company's EPS is expected to fall from $2.13 in 2013 to $2.06 in 2014 thanks to challenging prices. A 3.41% fall in profits may sound quite small, but Wall Street thrives on growth. Any notion of shrinking profits can send a stock falling like a rock. Until prices come back and more of the industry's production is taken offline, it is best to put PotashCorp on the side-burner.

Some players in the potash market are only slightly exposed to falling prices. Agrium (NYSE: AGU) runs a big retail arm, and its wholesale potash operations in Q3 2013 were only 3.2% of its total sales. The market could still get spooked by falling margins from Agrium's planned 14-week potash outage in 2014, but the company is promising permanently lower costs in 2015 and beyond. Agrium is taking some short-term pain for long-term gain. While traders may punish the stock for decreased potash output in 2014, its long-term growth plans still stand strong.

The bigger downside
Get ready for more potash mining operations to be idled or shut down. The market will freak out over one-time charges and falling profits, but lower prices help existing miners by discouraging new entrants. If the prices don't stay low enough, big miners like BHP Billiton will increase supply by shoving billions of new capex into the industry. BHP Billiton boasts profit margins around 16.8% and a return on investment (ROI) 11.1%, pumping out the profits necessary to afford the multi-billion dollar price tag for greenfield development.

Vale's (NYSE: VALE) current potash operations are very small. In Q3 2013 potash produced a minuscule 0.49% of total operating revenues. The company recently got out of a $6 billion potash project in Argentina and suspended a $3 billion potash project in Canada. If potash prices rebound in the coming years these projects could be restarted. As it stands the Brazilian government is putting pressure on Vale to secure more potash supplies for Brazil's domestic agriculture sector.

BHP Billiton and Vale are cutting back on capex, but what they really want is a stable market not dependent on China's slowing growth. Potash demand is dependent on the world's food consumption. Seeing as conservative estimates forecast a growing world population until 2055, big miners are ready to gain a bigger share of the potash market once the prices are permitting. 

The good news
As prices fall and more mines are idled, existing potash players like PotashCorp and Agrium will probably see their stock prices dinged. The positive side is that falling potash profits have not been brought on by gross mismanagement or heavy debt loads. The industry needs to rationalize production. Depressed prices decrease competition from big miners like BHP Billiton and Vale. As valuations come down and 2014 earnings bottom out PotashCorp and Agrium will be worth a second look.