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Qualcomm Does It Again

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Can't make it to the 2014 International Consumer Electronics Show? Never fear: The Fool is there to check out the tech and report back on who's there and what's new. With thousands of products in more than 15 categories, the next big thing is surely making its debut at the CES in Las Vegas.

Stopping by the Qualcomm booth, the Fool's Evan Niu gets a look at the new Snapdragon 805 in action. The new chip comes in under 2 watts and brings console-quality graphics to mobile devices.

It's technology like this that's led David Gardner to impossible gains like 926%, 2,239%, and 4,371% and he's ready to do it again. You can uncover his scientific approach to crushing the market today by simply clicking here now. Access is limited, so act fast!


A full transcript follows the video.

Evan Niu: Hey, Fools, Evan Niu here at CES. We're at Qualcomm's booth, and taking a look very specifically at the Snapdragon 800 chips that came out last year. This year, Qualcomm has really been pushing big on the graphics side; a lot of gaming displays up here. Tell us about the graphics capabilities in the Snapdragon 800.

Qualcomm Representative: Sure. Snapdragon 800 is the processor that we had shipping. We had lots of phones, like Samsung Galaxy S4, Nexus 5, LG G2, HTC 1; all are based on Snapdragon 800.

This year we announced the new product, called Snapdragon 805. That's the newest processor, and what this brings is a new GPU and new graphics capabilities with it. We're showcasing some of the graphics capabilities over here.

I'd like to show this demo to you first. This is the demo called the new Adreno 420 GPU, that is part of the Snapdragon 805 processor. It is 40% faster, it also is more efficient, and it has new features, which is cool. It's a complete DirectX 11.2 hardware, so it does support things like tessellation and geometry shaders.

This demo in particular is about the tessellation. I'll go over here so you can capture it on TV. This is how the game and graphics content looks today on mobile, where the ground is very flat, there's no details on the back of the hornet. But then when you have Snapdragon 805 and the ability to do dynamic tessellation, combined with the displacement mapping, it's able to add more data, more geometry, and more triangles to the already existing geometry within the game or content.

With that, what we can do is show more detail. You can see, on the ground, look at all the crevasses and the depth effects over there. You can look at the back of the hornet and you can see all these details on the eye and the back. All of these are possible because of the new dynamic tessellation feature on the GPU.

Niu: I know that graphics has been an important competitive area for you guys, versus NVIDIA . NVIDIA has always, historically, been very good at graphics. I know they announced their new Tegra chip with like 190-some odd cores. How do you see the newest Snapdragon holding up against those new Tegras?

Qualcomm Representative: I don't know enough about NVIDIA, so I wouldn't talk about it, but I can say that this 805 with Adreno 420 GPU brings all the capabilities that you would have on the highest NPCs and consoles because of this DirectX 11.2 hardware capability, so things like tessellation and geometry shaders are now possible on mobile.

The cool thing about it is that you can do the high dynamic or high fidelity geometry, and export all this data and have these HD effects, but with tessellation you can do it within the one-person power envelope that you have.

This is a very efficient way of doing the console-quality gaming. With Snapdragon 805, we delivered on that, bringing in the console-quality graphics in the most efficient way, under two watts.

Niu: Thank you very much. That's the Snapdragon 805. For more on Qualcomm at CES, check back at Fool.com.

The article Qualcomm Does It Again originally appeared on Fool.com.

Evan Niu, CFA, owns shares of Qualcomm. The Motley Fool recommends NVIDIA and owns shares of Qualcomm. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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WebOS Is Back ... Again!

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Get a glimpse of what's on the tech horizon with Foolish reports from the field at the 2014 International Consumer Electronics Show. Companies ranging from start-ups to Fortune 100 companies launch and showcase thousands of products at the event, which attracts visitors from around the world.

LG is giving webOS a try on some of its TVs, despite Palm and Hewlett-Packard's disappointing experiences with the operating system in the past. Is the time finally ripe? Foolish analyst Evan Niu is skeptical.

There were countless trends emerging from CES 2014 this year, but the real question for investors is how to capitalize on these revolutionary opportunities. Fortunately for you, David Gardner has an idea or two on how to invest in these new emerging technologies -- and how you can profit. Get in on the ground floor now by clicking here.


A full transcript follows the video.

Eric Bleeker: Hey, Fools. I'm Eric Bleeker, and I'm joined here by our technology analyst, Evan Niu. We're at CES, and what we're looking at right now is webOS on LG televisions.

Evan Niu: It's back for the third time.

Eric: It's back, it's back! Viewers out there might know it used to be a Palm property. Very well reviewed; did not sell well. It went to HP; they killed it.

Evan: Did not sell well!

Eric: It's now on televisions. What are your first impressions, after getting to use webOS on TV?

Evan: I'll say that they've definitely revamped and refurbished it for a TV interface. I don't really see any remnants of webOS from what we know from the smartphone days. I think that LG's real angle here is to try to redo the whole interface side of it, because I think that's where the biggest opportunity in TV is, is simplifying the interface.

They use this little clicker; anyone that's familiar with how a Wii works, it works the same way. It has a little clicker and you wave it around, and that's your cursor. But the implementation is a little weird. I found it a little finicky when I was trying to point at things.

It uses an accelerometer instead of an IR sensor to actually see where you're pointing. It just senses the movement, but it makes it a little hard to actually control sometimes.

Eric: Beyond functionality, I think the big concern for me, everything is moving so fast in this area right now. When they bought webOS and had plans for it, you didn't have things existing like Chromecast, which is now a $35 dongle which plugs into TVs.

When you try and build a platform -- we see content providers like USA Today on here -- are you really going to be able to build out that kind of rich ecosystem when you have both Google  and also Apple  moving to the TV?

For my two cents, I think you can try and build on the television, but eventually you just have such dominant smartphone properties that will not only transition to other home automation areas, but the television itself. What are your thoughts on that?

Evan: I think LG is very clearly trying to diversify, because obviously they have all their other regular TVs that will tie into these other platforms that Google and Apple are launching.

At the same time, they're kind of side-betting, hedging with webOS, like, "Maybe we can build our own content platform and be our own thing," but I don't think they're going to have a good shot at it; webOS doesn't have a good track record and I don't think this is going to change it.

Eric: Definitely a very innovative product, but doubtful third time will be the charm. I'm Eric Bleeker, and this is The Motley Fool at CES. 

The article WebOS Is Back ... Again! originally appeared on Fool.com.

Eric Bleeker, CFA, has no position in any stocks mentioned. Evan Niu, CFA owns shares of Apple. The Motley Fool recommends and owns shares of Apple and 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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This Company Is Here to Protect Against More Train Car Explosions

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Canadian National Railway  is the most recent company to experience a crude-by-rail accident in what is turning into series of tragic events in the industry. While the Department of Transportation is looking into the flammability of the crude itself, Greenbrier is hoping to retrofit 80,000 tank cars to make the transportation of oil safer. While new and improved tank cars could keep the number of explosions down, Greenbrier without question will profit enormously if the industry determines new cars are needed.   

The next energy boom
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

 


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

 

The article This Company Is Here to Protect Against More Train Car Explosions originally appeared on Fool.com.

Alison Southwick, Joel South, and  Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Canadian National Railway. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Jim Cramer's Crystal Ball Is Busted

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Photo credit: Flickr/Tulane Public Relations

Last month, Jim Cramer peered into his crystal ball and saw two American energy giants, EOG Resources and Pioneer Natural Resources , as prime takeover candidates in 2014. Personally, I thought his crystal ball was a bit cloudy, as neither looks like an ideal takeover candidate. Sure, EOG Resources is one of the best oil stocks in America, but it's also worth more than $45 billion. Even if it was bought out, shareholders wouldn't get much of a premium.


The same could be said for Pioneer Natural Resources. At nearly $25 billion, there are few companies that could afford to buy it out at much of a premium. Not only that, but Pioneer would be doing its investors a disservice by selling out now, as it believes that it's sitting on billions of barrels of untapped oil reserves.

That's why I wonder if Cramer's crystal ball isn't busted. Especially after reading about an energy buyout candidate that could double investors' money in 2014.

A double just waiting to happen
According to analysts at SunTrust Robinson Humphrey, the top takeover target for 2014 is Penn Virginia Corporation . They believe the stock is worth at least $18 a share. That's double the price it was trading before the firm made its bold call.

The analysts noted that, based on comparable recent sales in the Eagle Ford Shale, which is Penn Virginia's top asset, the company is trading at roughly 25% of the value of its acreage. It bases that number on Devon Energy's recent acquisition in the Eagle Ford, where it picked up 82,000 net acres for $6 billion.

With the Eagle Ford being such a core driver of American oil production growth, there are a number of companies that would like to pick up a prime spot in the play. Penn Virginia was ahead of the game when it bulked up on its position in the Eagle Ford earlier this year when Magnum Hunter Resources cashed out on its position in the play. While that was a solid deal for Magnum Hunter at the time as it produced a three-year internal rate of return more than 80%, the deal now looks like it will turn out to be a real steal for Penn Virginia.

Rapidly improving fundamentals
In addition to the upside from a potential buyout, Penn Virginia offers investors high-growth access to the Eagle Ford. The company currently has 72,000 net acres in the play, and has more than 890 future drilling locations. That should enable it to keep drilling for at least the next decade. However, it has set a realistic goal to grow its position to 100,000 net acres and more than 1,000 future drilling locations by pursuing small bolt-on deals to bolster its position. Overall, it sees the current implied value of its acreage position to be about $2.5 billion based on Devon Energy's recent purchase in the play.

These assets put the company in the position to fuel oil production growth of 65% to 85% in 2014. While Penn Virginia is currently funding its growth by selling assets and piling on debt, it has a plan in place to self-fund its drilling program within three years. Because of that, even if a buyout never develops, Penn Virginia's oil-focused growth in the Eagle Ford should fuel top returns for investors in the years ahead.

Investor takeaway
While both of Cramer's buyout candidates are great oil stocks, neither has the potential to deliver returns like Penn Virginia would if it was bought out in 2014. Further, neither of those top oil stocks have the untapped upside of Penn Virginia if a buyout doesn't occur. That's why investors looking to speculate on an energy buyout shouldn't follow Cramer's crystal ball in 2014.

The Motley Fool's top stock for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


The article Jim Cramer's Crystal Ball Is Busted originally appeared on Fool.com.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and EOG Resources. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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CSX Earnings: Will Railroad Stocks Keep Soaring Higher?

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CSX will release its quarterly report on Wednesday, and like peers Union Pacific and Norfolk Southern , CSX shares have hit their best levels ever recently. Yet among its competitors, CSX arguably has even further room for growth if it can take better advantage of some of the opportunities that Union Pacific in particular has capitalized on in recent years.

One of the most surprising things about how resilient CSX and other railroad stocks have been is that conditions have been terrible in many of the commodities markets that account for much of railroads' traditional shipping volume. In particular, CSX and Norfolk Southern have had some geographical disadvantages compared to Union Pacific that have made them even more vulnerable to adverse conditions in the coal industry. But even with poor coal volume weighing on revenue, CSX and its peers have looked to other sources for shipping growth. Let's take an early look at what's been happening with CSX over the past quarter and what we're likely to see in its report.


Photo credit: Wikimedia Commons/Nate Beal.


Stats on CSX

Analyst EPS Estimate

$0.43

Change From Year-Ago EPS

7.5%

Revenue Estimate

$3.00 billion

Change From Year-Ago Revenue

4%

Earnings Beats in Past 4 Quarters

4

Source: Yahoo! Finance.

Can CSX earnings grow faster this quarter?
In recent months, analysts have had mixed views on CSX earnings, raising their full-year 2013 estimates by $0.04 per share but cutting their 2014 projections by $0.02 per share. The stock has powered ahead, rising 15% since early October.

CSX's third-quarter results show how the railroad industry has adapted to changing conditions among its customers. The company overcame a 9% drop in coal-related revenue by boosting its movement of chemical and intermodal shipments, leading to a 4% jump in total sales from the year-ago quarter and sending earnings up a modest 2% year-over-year. In particular, the chemicals necessary for hydraulic fracturing and other unconventional energy production methods at shale plays across the continent have opened up opportunities for CSX as well as Union Pacific and Canadian rivals Canadian Pacific and Canadian National, and CSX is working hard to use that demand to keep its traffic up.

Yet even with lucrative markets like automobile shipping and intermodal transport, CSX's geographical disadvantage causes problems. Union Pacific, BNSF, and Kansas City Southern have more direct access to the West Coast than CSX and Norfolk Southern do, making it easier to serve high-growth Asian markets and the high volumes of trade that flow around the Pacific Rim.

The big hope for CSX is that markets for thermal coal could potentially rebound this year. With natural gas prices having hit bottom and actually rebounded substantially from 2012 lows, power plants are likely to keep current levels of coal demand stable. CSX has focused on low-cost coal areas in the Powder River and Illinois Basins to stay competitive, and that could help keep coal volumes flat or growing slightly from 2013 figures. At the same time, CSX could also benefit if exporters of coal take greater advantage of demand in the global coal market.

In the CSX earnings report, watch to see how the company's tests of natural-gas powered train engines are progressing. With the ability to switch from higher-cost diesel, changing fuel could help CSX and its peers cut their expenses and boost their profits -- a welcome sign that could send stocks climbing even further.

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Click here to add CSX to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

The article CSX Earnings: Will Railroad Stocks Keep Soaring Higher? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of CSX. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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This Late Billionaire's Most Interesting Holding

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Renowned takeover artist and financier Harold Simmons passed away recently. Thanks to a savvy investing instinct, he was able to amass a multi-billion dollar empire during his life. One of his holdings included Kronos Worldwide , a titanium dioxide, or TiO2, producer. Though the TiO2 industry has had its troubles, there are signs things may be turning around. If they do, Kronos, with competitors DuPont and Huntsman Corp. , could see its shares advance. Here's a quick look at a fascinating investor and one of his most interesting holdings.

Who was Harold Simmons?
Harold Simmons was a very successful investor who made a fortune by mastering the leveraged buyout, or buying a company with a small amount of equity and a significant amount of debt. The strategy can build wealth quickly when employed wisely. Simmons appeared to have the knack. Starting in 1960 with a single drugstore, he sold his then 100-property drugstore chain in 1973 for $50 million. Simmons multiplied that fortune as a feared participant in the debt-fueled merger and acquisition boom of the 1980's.

Mr. Simmons, estimated to be worth $8 billion in 2013, has owned or tried to acquire many businesses over the years, but one of his most notable raids was on defense contractor Lockheed Corporation in 1989. After Pentagon budget cuts depressed military contractor shares, Simmons gradually acquired almost 20% of the stock. Eyeing a $1.4 billion over-funded pension, many believed, the corporate raider withdrew only after Lockheed put up a stubborn poison-pill defense and won a hard fought proxy contest.


An astute investor, he described his stock picking style as "opportunistic" rather than proceeding by grand design. He also noted, "I look for value-financial and otherwise-that I feel has been overlooked by the market." Simmons also prudently avoided situations where he did not perceive an edge. "I try to stay away from regulated industries, and I try to stay away from high tech because I don't understand it," the financier stressed.

An interesting Simmons holding in a depressed industry
One of the most interesting Simmons-controlled companies is Kronos Worldwide, a leading global producer and marketer of TiO2. TiO2 is a vital coloring ingredient used in plastics, paints, and many other products. 2013 was an extremely difficult year for TiO2 producers. Product oversupply and sluggish demand caused selling prices to fall dramatically. Lower pricing, combined with a rise in raw material costs, obliterated industry profits. In its most recent quarter, Kronos reported a $29.9 million loss, compared with income of $35.2 million a year earlier. 

Kronos was not the only company to suffer. Chemicals industry giant DuPont, the world's largest TiO2 producer, found its titanium dioxide business to be depressing overall results. The company's TiO2 subsidiary, held in the performance chemicals division, was a notable laggard. DuPont reported a 5% year-over-year rise in operating earnings per share in its latest quarter with all company divisions producing sales and earnings improvements except performance chemicals. So, the subsequent plan to spin off the $7 billion segment wasn't too surprising. The split should help DuPont focus its substantial scientific expertise on secular growth markets like food, energy, and advanced materials, with shareholders ultimately benefiting.

The divestiture might help the TiO2 business as well. A leading player, DuPont Titanium Technologies, will have an incentive to help rationalize the industry. The firm's October product-pricing increase may be a sign of its intentions. Sustained higher selling prices are just what the industry needs to emerge from its slump. Kronos has also hinted that improved revenues may be on the horizon. It reported TiO2 selling prices decreased 18% year over year in the most recent quarter. A dismal figure, it was still a noticeable improvement over the 21% decline averaged over the first nine months of the year.

A stronger TiO2 industry on the horizon?
DuPont's impending departure from the industry also bodes well for further producer consolidation. Increased size, and the economies of scale it can deliver, may become a desired advantage -- at least Huntsman Corporation thinks so. A major chemicals producer, Huntsman expanded its TiO2 scope with the acquisition of Rockwood Holdings' titanium dioxide business. The $1.3 billion purchase makes Huntsman the second largest producer in the world, its goal being to integrate the acquisition, improve efficiencies, and eventually take the $3 billion entity public. Huntsman shareholders could benefit greatly if meaningful synergies are achieved and the TiO2 business environment improves.

Significant cost savings appear likely as Huntsman sees the transaction immediately boosting earnings per share. Industry recovery is also anticipated. Company management has stated that improved TiO2 sales are probable in the coming quarters. Huntsman is not alone in foreseeing better times. Though stressing he was committed to divesting the TiO2 operations, earlier this year Rockwood's CEO admitted that the business might be turning around. "We do believe that we are seeing a turnaround in our titanium dioxide cycle, and we expect the performance of this business to improve further in 2014," he mentioned.

Final thoughts
Harold Simmons was a very successful investor with an eye for value. One of his holdings, Kronos Worldwide has suffered due to a 2013 collapse in TiO2 pricing. There are some signs that things could be getting better, however. Though Kronos shares may have gotten ahead of themselves recently, investors may want to consider the company on any noticeable pullback. Improved supply and demand dynamics and a more consolidated, focused industry might provide for elevated TiO2 sales -- an occurrence that could propel Kronos, Huntsman or DuPont shares meaningfully higher.

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The article This Late Billionaire's Most Interesting Holding originally appeared on Fool.com.

Bob Chandler 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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10 Fastest Growing Jobs Over the Next Decade

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If you're likely to be in the job market at some point over the next decade, then I have some good news and some bad news.

The good news is that a number of occupations are projected to grow considerably over that time period. According to a recently released study by the U.S. Department of Labor, the average increase in new jobs among the 10 vocations with the highest forecasted numeric change in employment between 2012 and 2022 is 385,000.


By itself that may not seem like a lot, but that adds up to a total of nearly 4 million new jobs in these 10 professions alone. And if you include the next 10, the total figure shoots up to nearly 6 million new positions.

Occupation

Number of Projected New Jobs Over the Next Decade

2012 Median Pay

Personal-care aides

580,800

$19,910

Registered nurses

526,800

$65,470

Retail salespersons

434,700

$21,110

Home health aides

424,200

$20,820

Food-service workers

421,900

$18,260

Nursing assistants

312,200

$24,420

Administrative assistants

307,800

$32,410

Customer-service representatives

298,700

$30,580

Janitors and cleaners

280,000

$22,320

Construction laborers

259,800

$29,990

Source: U.S. Department of Labor

The demand for personal-care aides is expected to generate the largest single increase, with an estimated need for more than 580,000 new workers. Registered nurses come in second at 526,800, followed by retail salespersons, food-service workers, nursing assistants, and administrative assistants.

It's worth noting that four of the top six are in the health-care sector, likely a reflection of the aging baby boomer population.

So what's the bad news? The bad news is that many of these jobs pay meager salaries. Take the top profession on the list. The median pay for personal-care aides in 2012 came in just below $20,000. Retail salespersons earned slightly more at $21,110, and home health aides clocked in at a median pay of $20,820.

Meanwhile, the highest-paying position on the list, registered nurses, earned an increasingly respectable median income of $65,470 in 2012, while the lowest-paying positions, those in food service, earned a median income of only $18,260 over the same time period.

For investors in the stock market, if not prospective job applicants, it's hard to deny that the creation of new positions is good news. In an economy that's powered predominantly by consumer spending, any increase in employment is a positive sign, and one that's bound to buttress the S&P 500 , as well as other indexes.

The only question is whether the meager salaries will potentially counteract the numeric growth in positions. The answer to that question remains to be seen.

Discover The Motley Fool's top stock for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

The article 10 Fastest Growing Jobs Over the Next Decade originally appeared on Fool.com.

John Maxfield and The Motley Fool have no position in any of the stocks mentioned. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Big Changes and Small Moves for Teva Pharmaceutical Industries Ltd.

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Teva Pharmaceuticals has been engulfed with turmoil. Its blockbuster MS franchise is facing a new competitive thereat, and the company is staring down the barrel of its patent expiration. Then in October, we saw the surprise departure of still-new-on-the-job CEO Jeremy Levin.

Teva has not stood still. This past week has seen the company jump into the bidding for NuPathe , topping Endo Health's offer for the former's FDA-approved migraine patch. More importantly, it filled the vacancy in its CEO suite. Board member Erez Vigodman is set to take over, and has been hailed as an excellent choice, but he has a challenging road ahead.

In this video Motley Fool health-care analyst David Williamson discusses the competing NuPathe deals and what they mean for investors in both stocks, as well as the challenges Teva's new CEO will face and the important questions he must answer.


Our top stock for 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

The article Big Changes and Small Moves for Teva Pharmaceutical Industries Ltd. originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. Follow David on Twitter: @MotleyDavid. The Motley Fool recommends Teva Pharmaceutical Industries. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Considering Investing in Robotics Stocks in 2014? Here Are 4 Key Things You Should Know.

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You're likely aware that robots -- once the sole domain of futuristic cartoons, films, and literature -- are exploding onto the scene. While a Jetsons-like Rosie, who will do all your housekeeping, isn't here yet, iRobot  makes task-specific cleaning bots that will vacuum your carpets, among other things. Humanoid robots that will save the world from the baddies aren't here yet, either; however, Google's  Atlas, which it acquired when it snatched up Boston Dynamics last month, can perform some impressive tasks, such as climbing ladders, with operator assistance. 

The gadget lover in you might find all this cool, while the investor in you should know four key things if you're considering investing in robotics stocks. 

How are robots generally categorized?
Getting your head around the robotics market will be easier if you know that the market is generally broken down into three categories:

  • Industrial robots.
  • Professional service robots.
  • Consumer robots.
Defense robots -- part of the second category -- are sometimes broken out separately.
 
Industrial robots have been used in factory automation since their introduction in the late 1960s, so this category is quite mature. Like most things technological, however, factory bots are getting more advanced.
 
Some robots within the professional service category, notably defense-related ones, have been around for awhile, while others, such as telepresence robots for the health-care industry, are quite new.

Google's robots might eventually be joining the service robots category. Google hasn't said much about what it plans to do with its growing army of robots -- it acquired eight robotics companies last year, most notably Boston Dynamics and Schaft, which make the most advanced humanoid robots this side of the silver screen. However, there's buzz that Google intends to use them in its delivery service. This makes sense, as there seems to be considerable synergy between robots and Google's nascent delivery service, its Uber car service company acquired last summer, and its driverless-vehicle efforts. 

Overall, the consumer robotics market -- which includes robots used for domestic tasks and entertainment -- is the newest. 

What's the size of the robotics market?
The size of the market depends on how we define "robotics." If we're talking about just hardware, the overall market is about $13.1 billion. 

About $8.5 billion is a good consensus figure for sales of industrial robots in 2012. However, when the costs of software and engineering systems are tacked on, that number jumps to $26 billion, according to the International Federation of Robotics. The IFR estimates that the professional service robots and consumer robots generated sales of $3.4 billion and $1.2 billion, respectively, in 2012. 

Source: Data from International Federation of Robotics.

What's the projected growth of the robotics market?
The IFR projects the industrial robotics market will grow about 6% annually through 2017. 

There doesn't seem to be a good consensus estimate for growth in the other robotics markets. However, the general view is that the non-defense portion of the professional service market and the consumer market will experience faster growth than the industrial market. Growth in the consumer market is projected to be especially strong. Once this nascent market reaches a tipping point, growth should kick into high gear. 

How many pure-play robotics companies trade on a major U.S. stock exchange?
I know of five (there could be more) pure-play robotics companies that trade on a major U.S. exchange: iRobot, Intuitive Surgical Adept Technology, Hansen Medical, and Mazor Robotics. (MAKO Surgical was recently acquired by Stryker.)

This is an eclectic bunch with respect to type of robots produced, as well as company size and profitability.

If you want to invest only in companies that are currently profitable, you can shorten this list to two companies: iRobot and Intuitive Surgical, which have market caps of $1.1 billion and $16.0 billion, respectively.

iRobot is best known for its Roomba vacuuming robot, though it also makes other cleaning bots for consumers, as well as robots for defense and commercial applications. It's best considered a consumer robotics play, as its home segment accounted for 88.5% of its $61.1 million in revenue generated through the first nine months of 2013, with defense kicking in 9.3%. The nascent commercial products -- telepresence and videoconferencing assistance bots, primarily targeted to the health-care industry -- didn't contribute meaningfully to revenue and aren't expected to until 2015. 

iRobot is the only consumer play among the bunch (and, per my knowledge, among all publicly traded companies, regardless of stock exchange). The stock returned 85% in 2013, though the lion's share to the entire return was due to investors who bid up the valuation of the stock

Turning from mundane cleaning to highly skilled work -- surgery. Intuitive Surgical's da Vinci surgical systems work by translating a surgeon's natural hand movements on instrument controls at a console into corresponding movements of instruments positioned inside patients.  

This leader in robotic-assisted, minimally invasive surgery has been beset by a series of challenges lately, such as product recalls, a warning letter from the FDA, and questions about the efficacy of its systems. Intuitive Surgical posted strong results in 2012, with revenue and net income up 25% and more than 32%, respectively. However, its results for the first three quarters of 2013 have been adversely affected by moderating growth of benign gynecologic surgical systems, and changing hospital capital spending priorities because of the implementation of the Affordable Care Act. 

Intuitive Surgical is slated to report fourth-quarter and full-year results on Jan. 23. Investors should home in on company-specific variables affecting growth. The impact of the ACA on hospital capital spending is out of the company's (and its robots') hands, and will likely be a shorter-term challenge.

The three companies that are unprofitable are small, which presents additional volatility. Adept makes industrial robots, while Hansen and Mazor make medical and surgical robotic systems. Look for some coverage of one or more of these companies -- as well as some potentially interesting non-pure-play robotics stocks -- in future articles. 

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The article Considering Investing in Robotics Stocks in 2014? Here Are 4 Key Things You Should Know. originally appeared on Fool.com.

Fool contributor Beth McKenna has no position in any stocks mentioned. The Motley Fool recommends Google, Intuitive Surgical, and iRobot and owns shares of Google and Intuitive Surgical. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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LG Makes Its Move Over Roomba

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Can't make it to the 2014 International Consumer Electronics Show? Never fear: The Fool is there to check out the tech and report back on who's there and what's new. With thousands of products in more than 15 categories, the next big thing is surely making its debut at the CES in Las Vegas.

The Fool's Austin Smith visits the LG Connected Home Center at CES to get the dirt on Hom-Bot, a robotic vacuum cleaner that boasts a square design for corner access, as well as two on-board cameras and remote activation via Home Chat.

Even more exciting than this revolutionary technology are the incredible profits to be made from it, and when it comes to cashing in on big trends, no one is better than David Gardner. Click here now to uncover the one stock he's buying now. 


A full transcript follows the video.

Austin Smith: Hi. Austin Smith here on the floor of the CES, and we're at the LG Connected Home Center. We're here looking at the Hom-Bot, some home cleaning robots. I'm wondering if you could tell me a little bit about these devices.

LG Representative: The Hom-Bot, basically what it is, is a vacuum cleaner. It's different than the other brands because it's designed in a square, so it cleans all your corners really well, instead of the other ones that couldn't do it.

It also has a camera on the top and a camera on the bottom, which allows it to plan. It plans your house. It remembers where your furniture is, where everything is, so it doesn't bump into stuff and it doesn't break it.

Smith: We're looking at a couple design advantages, maybe, over a more entrenched home robot cleaner like iRobot . We have cameras on top, cameras on the bottom, and a square design, which allows you to clean the corners better.

What other benefits does this have -- integration with other LG-connected home products?

LG Representative: You can control it from your phone. You use our Home Chat, like all the other devices with LG, so that's another pretty good feature. You can be at the office, and you forgot to clean! You just go on your phone, and set it to clean the house. When you go back home, everything's clean!

Smith: Definitely more of a connected home platform than the traditional, maybe home-based cleaning robots we see out there. Anything else you want to touch on in particular with these devices, that make them stand out against an iRobot or a Roomba device?

LG Representative: That's pretty much it, but I think that's pretty cool, though!

Smith: Lots of very cool stuff from the Hom-Bot. Definitely just one more addition in the LG connected home sphere, something this company's taking very seriously. Thank you so much for the time.

Make sure to check back to Fool.com for more coverage of the CES.

The article LG Makes Its Move Over Roomba originally appeared on Fool.com.

Austin Smith has no position in any stocks mentioned. The Motley Fool recommends iRobot. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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5 Reasons 2014 Could Be the Year Microsoft's Windows Finally Dies

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Once a virtual monopoly, Microsoft's Windows business is but a shell of its former self. Apple's iOS and Google's Android have exploded in popularity in recent years, and the demand for mobile devices has weighed on the market for traditional PCs.

But 2014 could be the beginning of the end for Microsoft's Windows. More than just mobile devices, there are growing signs that Microsoft is losing control of the traditional PC. Let's look at five of those signs.

1. New Android-powered desktops
Last week at the Consumer Electronics Show, the world's top two PC vendors, Hewlett-Packard and Lenovo, unveiled radical new desktop PCs. I call them radical because, unlike the vast majority of desktop PCs, they run Google's Android -- not Microsoft's Windows.


HP's 21-inch all-in-one Android desktop is aimed at businesses, while Lenovo's machine is intended for home use. At any rate, if Android-powered PCs catch on, Microsoft's Windows will suffer.

2. The growth of Chrome OS
Google's other operating system, the Web-dependent Chrome OS, has been around for years but has finally started to gain traction. Amazon.com said two of the top three best-selling laptops during this past holiday season were Chromebooks, while Google's operating system now powers about one out of every five laptops sold through commercial channels.

Last week, Toshiba unveiled its first Chromebook, joining a long and growing list of Chromebook vendors. Almost every PC-maker will have at least one Chromebook model on sale in 2014.

3. Larger, enterprise-focused tablets
Also on sale in 2014 will be larger tablets aimed at business users. Samsung's 12.2-inch Galaxy Note Pro is a tablet powered by Google's Android intended to appeal to enterprise users. With a screen almost as large as those of many laptops, and a plethora of built-in business software, Samsung's device should cannibalize sales of Windows-powered PCs.

Apple is expected to join Samsung later this year. A number of reports have indicated that Apple is working on a 12- or 13-inch iPad "Pro" that will go on sale next fall. According to analysts at Evercore Partners, the iPad Pro will be pitched as hybrid between a tablet and a traditional laptop and will be aimed at business users.

4. Steam Machines
Outside the office, Microsoft's Windows still has a following among gamers, but they, too, could soon abandon their Windows PCs in favor of ones running an alternative operating system. Valve's Steam OS is based on Linux and aimed at gamers. A dozen different PCs running Steam OS -- "Steam Machines" -- were on display at CES last week and will go on sale later this year.

Steam OS can't do all the things Windows can, but if gaming is what you do most on your PC, Steam OS could be a potent alternative to Microsoft's operating system -- especially because it's free.

5. Cheaper Macs
Then there are Apple's Macs -- obviously, Apple has been a force in the PC market for decades, but its Macs have never taken more than a token share of the overall market. I wouldn't expect that to change dramatically, but Macs could become increasingly popular machines in 2014 and beyond. Historically, the problem with Mac adoption has been one of price: The absolute cheapest Mac models start at $999; the average PC sells for about half that amount. Put simply, most people just can't afford them.

But Apple has started to cut Mac prices. When Apple refreshed its Mac lineup in October, it cut prices of its MacBook Pro models by 13%. It also announced that its new operating system will be free to all users, and that buyers of new Macs will get several Apple-made applications for free. With Mac prices on the decline, Apple could take a larger percentage of the PC market. There are already signs this is beginning to take place -- according to Gartner, Apple's share of the U.S. PC market rose to 13.7% in the fourth quarter, up from less than 10% last year.

Is Microsoft rushing Windows 9?
According to longtime Microsoft observer Paul Thurrott, Microsoft is working hard to get Windows 8's successor -- Windows 9 -- shipped by April 2015. Thurrott notes that Microsoft is well aware of its Windows-related problems and is working hard to rectify the situation.

But in the tech world, 15 months can be an eternity. With Microsoft's Windows under siege from seemingly every angle, by the time Windows 9 is released, it could be too late.

A better investment than Microsoft? Get our top stock pick for 2014
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The article 5 Reasons 2014 Could Be the Year Microsoft's Windows Finally Dies originally appeared on Fool.com.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple and Google and owns shares of Apple, Google, and Microsoft. 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.

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The Hidden Partner in Audi's Driverless Car Revolution

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Get a glimpse of what's on the tech horizon with Foolish reports from the field at the 2014 International Consumer Electronics Show. Companies ranging from start-ups to Fortune 100 businesses launch and showcase thousands of products at the event, which attracts visitors from around the world.

Fully automated driverless cars may still be a way off, but Audi is moving in that direction with "piloted driving" -- technology that makes driving more comfortable, while still requiring a human behind the wheel.

Thanks to an uncanny ability to identify key trends in technology, David Gardner has established a market-thumping track record. Investors have seen a slew of storylines coming out of CES 2014, but the real challenge is recognizing where the opportunities truly lie. Click here to get David's latest thinking on where you should be invested to profit on the future of technology.


A full transcript follows the video.

Austin Smith: Hi. Austin Smith here at the floor of the CES. Here to talk about piloted driving and, in particular, Audi's work with piloted driving.

Now, you guys have been working on piloted driving technology for the last few years. This seems like something that a lot of car buyers out there have been seeing and anticipating. When do you think that this sort of technology becomes economically feasible and we'll start to see it in production vehicles?

Audi Representative: As you see, the message that we want to transfer with the CES is that we are definitely working on transferring that into serious production, and that we are shrinking, for example, ECUs [engine control units] in order to make that possible.

Smith: What do you think the biggest current obstacles are to piloted driving becoming a mass available technology to people? Is it regulations? Is it the cost of the technology? What is preventing that leap to mass adoption?

Audi Representative: First, the question regarding the costs. How we address the topic is to think about and to implement functionality which is affordable, for the first step.

For sure you can imagine about very sophisticated, fully autonomous driving without any driver anymore; this is much more cost intensive, but this is not our goal. We want to do the first step, which could be a short-term solution, and available for the customer.

An important obstacle, besides all the technical issues that remain, is for sure the regulations. There is some stuff -- like what we call "piloted driving" -- that will be available very soon. The real piloted driving, in the traffic jam, there are some regulations. You might be familiar with, that in the U.S., there are some regulations with respect to test activities, but there are no regulations about the regular usage at all.

Smith: For the consumers of the world, what should we look at to know piloted driving is just around the corner? Is it looking at Audi's vehicle lineup? What will be the big sign to us that it's here, that it's coming, that piloted driving is now suddenly going to be available for the masses?

Audi Representative: It will take a couple of years, and then simply check the newest model that we offer.

Smith: When we start seeing cars without drivers, I guess, then it will be obvious!

Audi Representative: Yeah, but as I mentioned the first step will be simply ... there is still a driver inside. There are some scenarios in which you can make the driving more comfortable, but the driver still will be there.

Smith: Thank you for your time. One last question; from a technical perspective, obviously just a huge amount of processing power and technology that has to go into these vehicles to make this possible.

What other companies, be they technology companies or manufacturers, do you see as really integral to this shift to piloted driving?

Audi Representative: You mean which companies will contribute on our work?

Smith: Yes, particularly for Audi, so Google  Maps ... who is really integral to this mass adoption of piloted driving?

Audi Representative: What we for sure need to work with are the No. 1 companies in the semiconductor markets, such as NVIDIA .

We announced in our press conference today that we cooperate with NVIDIA on that. We have a semiconductor program, in order to be not only on the leading edge, but always to push the bleeding edge forward, in order to have all those -- as you mention -- requirements with respect to more power in order of computing requirements.

Smith: That's wonderful. Thank you so much for your time.

Audi Representative: You're welcome.

The article The Hidden Partner in Audi's Driverless Car Revolution originally appeared on Fool.com.

Austin Smith has no position in any stocks mentioned. The Motley Fool recommends Google and NVIDIA 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Can Corning Make Apple's iWatch Dreams Come True?

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If tech giant Apple  has any hopes of making its much-rumored iWatch a reality (and I, for one, hope it does), it will need a little help from its friends.

How's that?


Well, depending on its chosen final design, Apple will possibly have to rely on third-party component suppliers like industrial dynamo Corning for critical next-gen materials. And, thankfully, in the case of Corning, it looks like Apple may have recently received good news on that front.

Corning coming up big
Last week, Corning made waves when it announced that it had recently developed a commercially viable version of its famous Gorilla Glass that can be molded into 3-D or curved shapes. 

And why does that matter for Apple?

Although by no means a sure thing, Corning's announcement paves the way for Apple to create its iWatch with the curved displays many longtime observers had hoped for. This is certainly a welcome notion as Apple certainly could use yet another growth driver these days.

In the video below, tech and telecom analyst Andrew Tonner discusses Corning's latest project and what it could mean for both it and Apple shareholders everywhere.

This stock could put Apple to shame in 2014
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

The article Can Corning Make Apple's iWatch Dreams Come True? originally appeared on Fool.com.

Fool contributor Andrew Tonner owns shares of Apple. The Motley Fool recommends and owns shares of Apple and Corning. 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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The U.S. Senate is Holding 1 Million Jobs Hostage

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Photo credit: Flickr/Phil Roeder

Still looking for a job? Blame the U.S. Senate. At least that's what the House Natural Resource Committee is saying. The committee has produced a half dozen bills that have all been passed by the U.S. House but are still awaiting Senate approval. Let's take a brief look at the six bills that the Committee believes would create more than a million jobs.


Restoring Healthy Forests for Healthy Communities Act
H.R. 1526 would renew the government's commitment to manage federal forests for the benefits of rural schools and counties. According to the committee, this legislation would create over 200,000 direct and indirect jobs as it would provide stable funding for counties to use for both education and infrastructure. This bill would actually save taxpayers $400 million over ten years while also improving local management of our forests and reduce the risk of forest fires.

Offshore Energy and Jobs Act
H.R. 2231 would open up new areas to offshore energy production. According to the Congressional Budget Office, it would generate $1.5 billion in new revenue over ten years as well as create 1.2 million long-term jobs.

One area that could hold a lot of oil is off of the Atlantic coast. Some estimates suggest that up to 10 billion barrels of oil could be produced from the Atlantic Outer Continental Shelf. Canada is already producing oil off of its Atlantic coast with oil giants like ExxonMobil and Chevron investing over $14 billion to develop the Hebron oil field. That's creating jobs and economic gains for Canadians. Developing our offshore resources could do the same for many Americans.

Federal Lands Jobs and Energy Security Act of 2013
H.R. 1965 is a package of bills that are designed to protect and expand onshore American energy production and create more American jobs. These bills will streamline government red-tape and regulations. These bills include the Federal Lands Job and Energy Security Act, Planning for American Energy Act, National Petroleum Reserve Alaska Access Act, BLM Live Internet Auctions Act and the Native American Energy Act.

These bills are designed to unlock the full potential of America's energy resources. By reforming the federal leasing process and opening up more areas to oil and gas exploration we would create jobs while also securing our energy future. 

Protecting States' Rights to Promote American Energy Security Act
H.R. 2728 would protect American jobs and American energy production by limiting the government's ability to impose duplicative regulations on hydraulic fracturing on federal lands. While fracking is a contentious issue, it has fueled remarkable jobs growth over the past few years. In fact, according to the IHS, shale oil and gas activity contributed to more than 1.7 million jobs in 2012. It expects that boom will fuel a 45% increase in jobs to 2.5 million by 2015.

National Strategic and Critical Mineral Production Act
H.R. 761 would allow the U.S. to more efficiently develop its strategic and critical minerals such as rare earth elements. These elements are critically important to the U.S. military as well as for technology and clean energy. This bill would enable more companies like Molycorp to increase production capacity for rare earth elements.

Mining is also an important jobs creator. For every job created by metals mining, it is estimated than an additional 2.3 jobs are created. Meanwhile, for every nonmetals mining job created, an additional 1.6 jobs are created.

Bureau of Reclamation Conduit Hydropower Development Equity and Jobs Act
H.R. 1963 would remove outdated federal statutory barriers and would create jobs and generate thousands of megawatts of clean hydropower. It wouldn't cost taxpayers a dime while at the same time creating revenue for local power providers and the federal government.

A call for action
If creating jobs is important to you, then now would be a good time to contact your U.S. Senators to get these bills passed. However, these bills are more than just about creating jobs. Each would spur economic growth while many would improve our national security.

U.S. energy security is one of OPEC's worst nightmares

Our abundant natural resources provide us with the opportunity to break away from OPEC's grip on our nation's energy supplies. That's opening the door for American's like you to take OPEC's profits and put them in your own pocket. In an exclusive, brand-new Motley Fool report we reveal the company doing just that. We're calling it OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock.

 

The article The U.S. Senate is Holding 1 Million Jobs Hostage originally appeared on Fool.com.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Chevron. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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35 Trillion Reasons Why Israel Could Be a Game Changer

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Source: Noble Energy

Not all of us can be born into riches, most of us have to go out and create our own wealth. Turns out we are in luck, as one company's namesake may just be able to lift investors into royalty as Noble Energy's strategic investments around the world could propel this stock higher.


Only the biggest and best for investors
Just off the coast of Israel and south of Cyprus, Noble Energy has made several of the biggest finds in decades. Noble Energy discovered the Tamar gas field in 2009, which houses around 10 trillion cubic feet of natural gas. Other major finds include the Leviathan field, which houses around 18 trillion gross cubic feet of gas (7.5 trillion net) and the 5 trillion gross cubic feet of gas found near Cyprus. 

The treasure hunt gets even better, with several other major finds bringing the total amount of natural gas discovered in the region to 35 trillion cubic feet. This represents a huge opportunity for Noble Energy, and Israel recently gave the green light for 40% of its gas output to be exported. Being able to export natural gas will allow Noble Energy to access several markets and further increase output capacity.

In Cyprus, Total SA signed a tentative deal to discuss building an LNG export terminal on the island. Total's commitment is dependent on its exploration efforts in the region, which begin in February. Depending on whether or not Total is able to find recoverable resources in the two blocks off of Cyprus' coast decides if the LNG facility will be created, but if Total is able to replicate Noble Energy's success, then both will be able to take advantage.

Noble is hoping Total goes through with its plans, so it can expand into other markets without having to build its own LNG export facility. Investors will have to wait and see if Total is successful.

Looking for partners
In the Tamar field, Noble Energy is pumping out roughly 750 MMcf/d with the capacity to increase that by an additional 250 MMcf/d. Looking out to 2016, Noble Energy hopes to increase that to 1.5 Bcf/d as more long term contracts justify the expansion. As Noble Energy ramps up production in the area, expect tidal waves of cash to wash over investors.

Monstrous amounts of potential
The Leviathan field holds around 7.5 trillion net cubic feet of natural gas, and will begin production around 2017. While the primary purpose of the gas field is to service Israel's domestic demand, Israel's neighbors want to get in on the action as well. Noble Energy could service Turkey, Jordan, Palestine, Egypt and Cyprus, which could provide demand north of 2 Bcf/d through LNG export facilities and domestic electricity needs. 

A historic moment
Most of the world is aware of Israel's tensions with Palestine, but that didn't stop a historic $1.2 billion deal from being signed. Palestine Power Generation Co plans on purchasing 168 billion cubic feet of natural gas from Noble Energy and its partners (who also have a stake in the Leviathan field) over the course of 20 years. Hopefully this deal will help bring some peace to region while promoting economic cooperation.

Clearly the major natural gas finds are more than just another source of power, it has the ability to reach across borders and open up dialogue, all while making you money. Palestine is going to receive the gas via pipeline, but if Total builds an LNG export facility then Israel will be able to create new economic acquaintances/friendships worldwide.

Foolish conclusion
Who knew hydrocarbons could be a source of peace in the Middle East rather than tension? Israel and Palestine aren't buddies, but at least this is a move in the right direction.

As for your portfolio, Noble Energy's stake in the various fields across the Mediterranean are perfect examples of the first class assets this company owns. Not all of us can be born into riches, but we can always go out and make our own fortune. In my next article I will continue my explanation as to why Noble Energy is worthy of your cash, focusing on Noble's investments in North American shale plays.

Speaking of the Middle East, OPEC better keep its eyes on this company moving forward

Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

The article 35 Trillion Reasons Why Israel Could Be a Game Changer originally appeared on Fool.com.

Callum Turcan owns August 16 call options for Noble Energy. The Motley Fool recommends Total SA. (ADR). 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Netflix Goes Beyond HD

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The Fool heads out to Vegas to check out the 2014 International Consumer Electronics Show. With more than 3,200 exhibitors, including 88% of the top retailers in consumer electronics, the CES is the place to be to see what's coming up in tech.

Which comes first, ultra-high definition content, or devices that can play it? Content providers such as Netflix and Amazon.com are teaming up with TV manufacturers to tackle the chicken-and-egg problem of 4K.

It's technology like this that's led David Gardner to impossible gains like 926%, 2,239%, and 4,371% and he's ready to do it again. You can uncover his scientific approach to crushing the market today by simply clicking here now. Access is limited, so act fast!


A full transcript follows the video.

Austin Smith: Hey, Fools. Austin Smith here on the floor of the CES with Eric Bleeker. Eric, I want to talk about 4K and the announcement that Netflix just made, that they're going to start streaming content in 4K. First of all, what is 4K, and why is this important for investors?

Eric Bleeker: Yeah, 4K is otherwise known as ultra-high definition. We started seeing a lot of buzz about it last year. It hasn't had a lot of pick-up, in part because there's not a lot of content for consumers that's been filmed in 4K.

Netflix, among other companies, is trying to change this. They just announced a partnership with four TV manufacturers, that they're going to be building in support for 4K streaming. Now, they're not alone; also Amazon announced their own partnerships.

It's important to get these TVs out, because House of Cards -- right here you can see it in the background, a very popular show -- they just released a 4K trailer. There are no TVs on the market that you can watch this trailer in 4K, so it's kind of a chicken-and-egg proposition. You need to get the content out, but you can't sell the hardware until you've created the content.

Smith: Definitely a bit of a chicken-and-egg problem in this industry, as we're seeing, but very fast movers here; Netflix and Amazon, a bit of a monkey see, monkey do. What things should investors be looking at, to know that this technology is getting serious traction?

Bleeker: One of the areas that you need to look at is, what could user-generated content actually do to help this? A great point was brought up in a previous panel that we watched by Qualcomm's CEO that, effectively, for the first time ever, very few professionals are actually filming in 4K, but a lot of people with smartphones can take advantage of it. The amateur photographer can do it.

Depending on what kinds of content we're creating, users might adopt, but realistically we need to look down at price. If 4K is too expensive, users have shown in recent years they're not as concerned about incremental spec upgrades. We saw last year, the iPad Mini -- as in non-Retina display -- come out to huge sales, even though there were Retina displays on the market for even cheaper amounts.

People are looking more for user friendliness, they're looking for "good enough" solutions, and if 4K stays too expensive and there's not content, consumers just aren't going to buy into it.

Smith: All right, Fools, there you have it. Amazon, Netflix, 4K, Apple -- definitely a hot corner of the tech space right now, and something investors should be keeping an eye on. Make sure you tune in to Fool.com for more coverage of the Consumer Electronics Show. Thanks, and Fool on! 

The article Netflix Goes Beyond HD originally appeared on Fool.com.

Eric Bleeker, CFA, has no position in any stocks mentioned. Austin Smith owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, and Netflix and owns shares of Amazon.com, Apple, Netflix, and Qualcomm. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Is Family Dollar Too Expensive?

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Discount retailer Family Dollar Stores seems to be imploding. The Matthews, N.C.-based discounter was already lagging rivals Dollar General , Dollar Tree, and Wal-Mart Stores , and now it seems to have fallen into greater despair.

In trouble
Family Dollar's just-released first-quarter results were not pretty. Revenue increased just 3.2% to $2.5 billion, but net income was down to $78 million in the quarter from $80.3 million in the prior-year period. While these numbers might not suggest that Family Dollar is in a precarious position, a 2.8% drop in same-store sales and a tepid outlook for the current fiscal year will remove any doubts.

Moreover, Family Dollar's president and chief operating officer, Michael Bloom, resigned recently after what seems like a fallout with Howard Levine, the CEO. According to Levine, "While we've made some progress during Mike's tenure, we weren't happy with our financial results. Ultimately, Mike and I were not aligned on our merchandising strategy and we decided to make a change." 


While rival dollar stores have been seeing an increase in traffic, Family Dollar is going the opposite way. In its last-reported quarter, Dollar General's same-store sales grew 4.4%, while revenue and net income grew in double digits. Also, in what was considered to be a weak quarterly performance, Dollar Tree managed to post same-store sales growth of 3.1%. 

Family Dollar struggled as lower-income customers looked to stretch their budgets. According to The Wall Street Journal, more than 50% of Family Dollar's customers receive some kind of government assistance. But now, high unemployment levels, higher payroll taxes, and reductions in government assistance programs have created more pressure on these lower-income customers.

Tough times ahead
Family Dollar employed a strategy of offering discounts on certain items and made up for those discounts by raising the prices of other items. However, this strategy hasn't worked quite well since shoppers are looking for everyday low prices rather than discounts on select items. Moreover, Family Dollar also had to incur costs in printing circulars to promote the discounted items, apart from spending effort on rearranging stores to better highlight them. 

Clearly, Family Dollar's strategies have failed to attract shoppers on a budget, and the competition is eating its lunch. As such, the company now expects its same-store sales to decline in low-to-mid single digits in the upcoming quarters. Additionally, Family Dollar trimmed its guidance for fiscal 2014, lowering the earnings-per-share range to $3.25-$3.55 from the former $3.80 -$4.15. 

Now, Family Dollar is looking to arrest the decline by looking to lower overall prices. However, there is no instant relief in the cards since rivals are probably better positioned. According to a Kantar Retail Survey, Dollar General is the least expensive place to shop, with an average basket price of $28.70 --  7.4% cheaper than Family Dollar, which was third in the survey with an average basket price of $30.81.

Dollar General has a network of more than 11,000 stores, and it plans to increase its store base by another 27% in the future. So, a combination of low prices and an increasing network of stores can make life difficult for Family Dollar going forward.

Then there's Wal-Mart, which was just behind Dollar General in the Kantar survey with an average basket size of $28.82. Going forward, Wal-Mart can make things more difficult for Family Dollar as it expands its neighborhood market stores. Wal-Mart plans to increase the number of its smaller stores by around 75% in the next year or so, and it is also testing the Express format, its smallest store concept. Thus, like Dollar General, Wal-Mart is also a big threat for Family Dollar going forward with its low prices and wide network.

The takeaway
Family Dollar's strategies have failed to click in a difficult retail environment. Management expects same-store sales to go south in the future and has also reduced its earnings forecast for the fiscal year, which should be a good enough reason for investors to question holding Family Dollar shares.

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The article Is Family Dollar Too Expensive? originally appeared on Fool.com.

Fool contributor Harsh Chauhan 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Will Intel Finally Crack Smartphones in 2014?

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Get a glimpse of what's on the tech horizon with Foolish reports from the field at the 2014 International Consumer Electronics Show. Companies ranging from start-ups to Fortune 100 businesses launch and showcase thousands of products at the event, which attracts visitors from all around the world.

Smartphone OEMs from Asus to Lenovo now have "Intel  Inside," as do the lower-end Nokia  Asha phones. Will Intel get some traction against Qualcomm in 2014, or will compatibility with Android be an issue? 

There were countless trends emerging from CES 2014 this year, but the real question for investors is how to capitalize on these revolutionary opportunities. Fortunately for you, David Gardner has an idea or two on how to invest in these new emerging technologies -- and how you can profit. Get in on the ground floor now by clicking here.


A full transcript follows the video.

Eric Bleeker: Hey, Fools. I'm Eric Bleeker, joined here by Evan Niu, and we're coming from CES today. We are at Intel's booth, and we want to look specifically at some of the smartphones they have on display here.

As many investors out there know, ARM Holdings  has been the dominant force within processors in smartphones. You see Qualcomm building off that, especially within not just processors but some of the baseband components, the radio components.

What are you seeing from Intel on the floor here? Does it show you that they could be more competitive in this space?

Evan Niu: It seems like it. We were just taking a look at some of these phones over here. We've got pretty big OEMs onboard -- you've got Asus, Lenovo -- Intel's now getting a smidge lower-end, Nokia Asha phones.

Another interesting thing for me is that some of these phones are running Intel basebands. I think this next year, Intel is really going to try and challenge Qualcomm on the baseband side of it. I think we're seeing a little bit of traction here.

Eric: Yeah, we saw Intel buy Infineon to try and catch up in the space. Obviously, having closed the technology gap with Qualcomm, LTE's maturing gives some companies a chance to make moves there.

I noticed, I was using a 6-inch smartphone, playing a relatively non-intensive game, Fruit Ninja. I was actually seeing some lag on there, in different portions. What is the consensus right now on Intel being able to run within Android?

Evan: I think that's probably the biggest question for Intel, strategically, is how the performance of their chips will match up, just because most code isn't necessarily optimized for Intel chips.

It doesn't actually matter for most apps, but 3-D games, really processor-intensive apps, that's where we'll start to see that performance lag. Like you say, if you're just playing something like Fruit Ninja, that's not a really intensive game. If you're talking about some hardcore 3-D game it's probably not going to hold up well, because it's not optimized for an Intel chip quite yet.

Eric: Yeah, I was definitely surprised to see some lag there. In any case, Intel's showing off its smartphones, wants to be a player, hoping for 2014 to be its biggest year yet.

I'm Eric Bleeker with Evan Niu. Thanks for tuning in!

The article Will Intel Finally Crack Smartphones in 2014? originally appeared on Fool.com.

Eric Bleeker, CFA, has no position in any stocks mentioned. Evan Niu, CFA, owns shares of Qualcomm. The Motley Fool recommends Intel and owns shares of Intel and Qualcomm. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Will a European Recovery Boost Ford in 2014?

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New models like the EcoSport SUV will help Ford gain ground in Europe this year. But the pressure to cut prices is still fierce, and that will make profits hard to find. Photo credit: Ford Motor Co.


After months and months of declines, analysts say that new-car sales in Europe could rise a bit this year.

That would be good news for both Ford  and General Motors . Both Detroit giants have worked hard to reverse billions in losses over the last few years, with turnaround plans that have cut costs and added new models to their respective European lineups.

Both Ford and GM have seen losses in Europe narrow recently, but profits still seem a long way off. Rising sales will help. But as Fool contributor John Rosevear points out in this video, another factor -- the need to offer steep discounts -- is likely to squeeze margins and keep profits away for a while longer.

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The article Will a European Recovery Boost Ford in 2014? originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of Ford and General Motors.  You can connect with him on Twitter at  @jrosevear The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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Where the Money Is: January 13

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We revisit our August "Stock Draft" to discuss the winners and loser, so far. Join Motley Fool analysts Matt Koppenheffer and David Hanson as they discuss Goldman's expectations, share how they try and find great management teams, and grade one crazy hair-style.

1 stock to rule them all
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

The article Where the Money Is: January 13 originally appeared on Fool.com.

David Hanson owns shares of American International Group, Annaly Capital Management, Capital One Financial (Warrant), Goldman Sachs, and JPMorgan Chase. Matt Koppenheffer owns shares of American International Group, Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase. The Motley Fool recommends American International Group, Bank of America, BofI Holding, eBay, Goldman Sachs, Wells Fargo, and WisdomTree Investments. The Motley Fool owns shares of American International Group, Bank of America, BofI Holding, Capital One Financial., Citigroup, eBay, JPMorgan Chase, and Wells Fargo and has the following options: long January 2016 $30 calls on American International Group. 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 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

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