Top 10 Bank Stocks To Own Right Now

On Thursday, Dendreon (NASDAQ: DNDN  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

Dendreon has fallen from grace since its Provenge prostate-cancer treatment received Food and Drug Administration approval three years ago. Investors had banked on the drug becoming a hot seller, but the anticipated ramp-up in revenue hasn't materialized nearly as quickly as shareholders had hoped. Let's take an early look at what's been happening with Dendreon over the past quarter and what we're likely to see in its quarterly report.

Stats on Dendreon

Analyst EPS Estimate

Top 10 Bank Stocks To Own Right Now: First Commonwealth Financial Corporation(FCF)

First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, and IRA accounts. It also provides secured and unsecured installment loans, construction and mortgage loans, safe deposit facilities, credit lines with overdraft checking protection, and student loans, as well as Internet and telephone banking, and automated teller machine services. In addition, the company offers commercial banking services, including commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposi t, commercial cash management services, and repurchase agreements. Further, it provides various trust and asset management services, as well as a complement of auto, home, business, and term life insurance. Additionally, the company offers annuities, mutual funds, stock, and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. It operates 115 community banking offices in western Pennsylvania and 2 loan production offices in downtown Pittsburgh and State College, Pennsylvania. The company was founded in 1982 and is headquartered in Indiana, Pennsylvania.

Advisors' Opinion:

• [By Paul McWilliams]

  Trailing 12-month free cash flow (FCF) was $1.58 per fully diluted share, versus Cree's reported non-GAAP earnings of $1.32, and net cash per fully diluted share increased by $2.06 year-over-year.

• [By Fede Zaldua]

  Overall, the company is trying to resist European volume trends while successfully putting in practice its pricing power. Even when market-trends flow against Imperial's top-line, the company should be able to grow its Free Cash Flow (FCF) per share once again in 2013 -its 2013 FCF yield should be as high as 9%. Some businesses are simple great. They deliver growing cash yields to its owners even when conditions are tough.

Top 10 Bank Stocks To Own Right Now: First Republic Bank (FRC)

First Republic Bank is a full-service bank and wealth management firm. First Republic Bank and its subsidiaries provide private banking, private business banking and private wealth management, including investment, trust and brokerage services. The Company specializes in delivering service through offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. The Company's products and services include residential lending, commercial real estate lending, personal lending, private business banking, deposit services, trust services, brokerage services and investment management services. Investment advisory services are provided by First Republic Investment Management, Inc. Trust services are provided by First Republic Trust Company. Brokerage services are offered through First Republic Securities Company, LLC. In March 2012, the Company announced the opening of a new trust company.

The Company offers full-service banking on both coasts, including free online banking, free bill pay and free access to over 800, 000 automated teller machines (ATMs) worldwide. Its private business banking provides specialized services for accounting firms, architecture and design, art and antique dealers, business management firms, business partnership, entertainment/media, entrepreneurs, family offices, financial services, independent school, investment firms, law firms, medical firms, non-profit organizations, private equity funds, property management firms, real estate investors, venture capital funds, wineries, and yacht, golf, city and country clubs. The Company�� private wealth management offers customized investment management, trust, and brokerage services for individuals, trust endowments, and pension plans. Wealth management services include asset allocation, trust administration and custody, portfolio management, financial and estate planning, manager selection and comprehensive brokerage services.

Advisors' Opinion:

• [By Monica Gerson]

  First Republic Bank (NYSE: FRC) is estimated to report its Q3 earnings at $0.76 per share on revenue of $320.72 million.

  Renasant (NASDAQ: RNST) is expected to post its Q3 earnings at $0.31 per share on revenue of $60.87 million.

Top 10 Small Cap Companies To Buy Right Now: HDFC Bank Ltd (HDB)

HDFC Bank Limited (HDFC Bank), incorporated in August 1994, is a banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has overseas branch operations in Bahrain and Hong Kong. The Bank operates in four segments: treasury, which primarily consists of net interest earnings from the Bank�� investment portfolio, money market borrowing and lending, gains or losses on investment operations and on account of trading in foreign exchange and derivative contracts; retail banking, which serves retail customers through a branch network and other delivery channels; wholesale banking, which provides loans, non-fund facilities and transaction services to corporate, public sector units, government bodies, financial institutions and medium scale enterprises, and other banking business, segment includes income from para banking activities, such as credit cards, debit cards, third party product distribution, primary dealership business and the associated costs. Revenues of the retail banking segment are derived from interest earned on retail loans, net of commission (net of subvention received) paid to sales agents and interest earned from other segments for surplus funds placed with those segments, fees from services rendered, foreign exchange earnings on retail products.

Retail Banking

The Bank is a financial services provider of various deposit products, of retail loans (auto loans, personal loans, commercial vehicle loans, mortgages, business banking, loan against gold jewellery), credit cards, debit cards, depository (custody services), investment advisory, bill payments and several transactional services. Apart from its own products, the Bank distributes third party financial products, such as mutual funds and life and general insurance. As of March 31, 2012, the Bank had 2,544 branches in 1,399 Indian cities. The Bank had 8,913 automated teller machines (ATMs) during the fiscal year ended March 31,! 2012. In addition to the Bank does home loans in conjunction with HDFC Limited. Under this arrangement the Bank sells loans provided by HDFC Limited through its branches. HDFC Limited approves and disburses the loans, which are booked in their books, with the Bank receiving a sourcing fee for these loans. HDFC Limited offers the Bank an option to purchase up to 70% of the fully disbursed home loans sourced under this arrangement through either the issue of mortgage backed pass through certificates (PTCs) or by a direct assignment of loans; the balance is retained by HDFC Limited. It also distributes life, general insurance and mutual fund products through its tie-ups with insurance companies and mutual fund houses.

Wholesale Banking

The Bank provides its corporate and institutional clients a range of commercial and transactional banking products. The Bank�� commercial banking business covers the corporate sector, the emerging corporate segments and some small and medium enterprises (SMEs). The Bank has a number of business groups catering to various segments of its wholesale banking customers with a range of banking services covering their working capital, term finance, trade services, cash management, foreign exchange and electronic banking requirements. The Bank�� financial institutions and government business group (FIG) offers commercial and transaction banking products to financial institutions, mutual funds, public sector undertakings, central and state government departments. The main focus for this segment is offering various deposit and transaction banking products to this segment besides offering funded, non-funded treasury and foreign exchange products.

The Bank provides its customers both working capital and term financing. The Bank�� corporate banking business includes cash management and vendor and distributor (supply chain) finance products. The Bank has a wholesale banking branch in Bahrain, a branch in Hong Kong and two representative offic! es in the! United Arab Emirates (UAE) and Kenya. The branches offer the Bank�� suite of banking services including treasury and trade finance products to its corporate clients. The Bank offers wealth management products, remittance facilities and markets deposits to the non-resident Indian community from its representative offices.

Treasury

The treasury group is responsible for compliance with reserve requirements and management of liquidity and interest rate risk on the Bank�� balance sheet. On the foreign exchange and derivatives front, revenues are driven primarily by spreads on customer transactions based on trade flows and customers��demonstrated hedging needs. The Bank offers Indian rupee and foreign exchange derivative products to its customers. The Bank enters into foreign exchange and derivative deals with counterparties after it has set up appropriate counterparty credit limits based on its evaluation of the ability of the counterparty to meet its obligations in the event of crystallization of the exposure. The Bank also deals in Indian rupee derivatives on its own account, including for the purpose of its own balance sheet risk management.

Other banking business

The Bank has two subsidiaries: HDFC Securities Limited (HSL) and HDB Financial Services Limited (HDBFS). HSL is primarily in the business of providing brokerage services through the Internet and other channels. As of March 31, 2012, HSL had a network of 184 branches across the country. HDBFS is a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, it grants loans to small and medium business enterprises and micro small and medium enterprises, the principle businesses of HDBFS include loans, which offers a range of loans in the secured and unsecured loans space that fulfill the financial needs of its target segment; insurance services, HDBFS is a corporate agent for HDFC Standard Life Insurance Company and sells insurance products ,as well as products, ! such as L! oan Cover and Asset Cover, and collections-BPO services, which runs six call centres. These centres cover collection requirements at over 200 towns through its calling and field teams. As on March 31, 2012, HDBFS had 180 branches in 135 cities in order to distribute its products and services.

Top 10 Bank Stocks To Own Right Now: Australia and New Zealand Banking Group Ltd (ANZ)

Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Company conducts its operations in Australia, New Zealand and the Asia Pacific region. It also operates in a range of other countries, including the United Kingdom and the United States. The Company operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth and Private Banking. As of September 30, 2012, the Company had 1,337 branches and other points of representation worldwide, excluding automatic teller machines (ATMs). In September 2012, it sold its remaining shareholding in Visa Inc. Advisors' Opinion:

• [By Adam Haigh]

  Komatsu Ltd. tumbled 8 percent in Tokyo after the world�� second-largest maker of construction equipment cut its full-year profit forecast by 26 percent. Industrial & Commercial Bank of China Ltd. gained 1.4 percent in Hong Kong, pacing an advance among Chinese lenders, after China�� central bank added funds to the financial system for the first time in two weeks. Australia & New Zealand Banking Group Ltd. (ANZ) climbed 1.4 percent to a record in Sydney after posting its highest profit and raising its dividend more than forecast.

• [By Adam Haigh]

  Australia & New Zealand Banking Group Ltd. (ANZ) sank 3 percent after Australia�� third-largest bank by market value forecast interest margins will keep dropping. Hyundai Merchant Marine Co. jumped 6.9 percent in Seoul after North Korea and South Korea agreed to reopen the Gaeseong industrial complex. Chinese stock exchange officials are investigating a spike in the Shanghai Composite Index, which soared from a loss of as much as 1 percent to a gain of 5.6 percent in two minutes. Everbright Securities Co. said it experienced a trading error.

Top 10 Bank Stocks To Own Right Now: State Street Corporation(STT)

State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. The company?s Investment Servicing business line provides products and services, including custody, product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loan and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk, and compliance analytics. This segment also offers shareholder services, which comprise mutual fund and collective investment fund shareholder accounting. Its Investment Management business line provides a range of investment management, investment research, and other related services, such as securities finance; and strategies for managing passive and active financ ial assets, such as enhanced indexing and hedge fund strategies for U.S. and global equities and fixed-income securities. The company serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1832 and is headquartered in Boston, Massachusetts.

Advisors' Opinion:

• [By Rich Smith]

  When it comes to big, publicly owned investment management companies, there's little doubt which one investors love best:�Blackrock� (NYSE: BLK  ) �is top of the heap. Rated "four stars" by The Motley Fool's�CAPS supercomputer, Blackrock easily eclipses smaller rival�State Street� (NYSE: STT  ) , rated three stars, and larger rival�UBS� (NYSE: UBS  ) �-- an anemic two stars. But why?

• [By Anders Bylund]

  State Street (NYSE: STT  ) and Goldman Sachs (NYSE: GS  ) do consistently well on these metrics, ranking first and second in two categories. In layman's terms, this means that these banks carry much lower investment risks than the Fed now requires, since their financial bets are backed by strong balance sheets.

Top 10 Bank Stocks To Own Right Now: Federal National Mortgage Association Fannie Mae (FNMAT)

Federal National Mortgage Association Fannie Mae is a government-sponsored enterprise (GSE) chartered by the United States Congress to support liquidity and stability in the secondary mortgage market, where mortgage-related assets are purchased and sold. The Company�� activities include providing market liquidity by securitizing mortgage loans originated by lenders in the primary mortgage market into Fannie Mae mortgage-backed securities (Fannie Mae MBS), and purchasing mortgage loans and mortgage-related securities in the secondary market for its mortgage portfolio. Fannie Mae operates in three business segments: Single-Family business, Multifamily Business (formerly Housing and Community Development (HCD)) and Capital Markets group. Its Single-Family Credit Guaranty and Multifamily businesses work with its lender customers to purchase and securitize mortgage loans customers deliver to the Company into Fannie Mae MBS.

The Company obtains funds to support its business activities by issuing a variety of debt securities in the domestic and international capital markets. Fannie Mae acquires funds to purchase mortgage-related assets for its mortgage portfolio by issuing a variety of debt securities in the domestic and international capital markets. It also makes other investments. Fannie Mae conducts its business in the United States residential mortgage market and the global securities market. It conducts business in the United States residential mortgage market and the global securities market. During the year ended December 31, 2011, the Company��

Single-Family Business

Single-Family business includes mortgage securitizations, mortgage acquisitions, credit risk management and credit loss management. Single-Family business works with the Company�� lender customers to provide funds to the mortgage market by securitizing single-family mortgage loans into Fannie Mae MBS. Its Single-Family business also works with its Capital Markets group to facilitate the purc! hase of single-family mortgage loans for the Company�� mortgage portfolio. Fannie Mae�� Single-Family business prices and manages the credit risk on its single-family guaranty book of business, which consists of single-family mortgage loans underlying Fannie Mae MBS and single-family loans held in its mortgage portfolio. Single-Family business and Capital Markets group securitize and purchase primarily single-family fixed-rate or adjustable-rate, first lien mortgage loans, or mortgage-related securities backed by these types of loans.

The Company securitizes or purchases loans insured by Federal Housing Administration (FHA), loans guaranteed by the Department of Veterans Affairs (VA), and loans guaranteed by the Rural Development Housing and Community Facilities Program of the Department of Agriculture, manufactured housing loans, reverse mortgage loans, multifamily mortgage loans, subordinate lien mortgage loans and other mortgage-related securities. Its Single-Family business securitizes single-family mortgage loans and issues single-class Fannie Mae MBS. Fannie Mae�� Single-Family business securitizes loans solely in lender swap transactions, in which lenders deliver pools of mortgage loans to the Company, which are placed immediately in a trust, in exchange for Fannie Mae MBS backed by these loans. Generally, the servicing of the mortgage loans held in its mortgage portfolio or that backs its Fannie Mae MBS is performed by mortgage servicers on the Company�� behalf. Lenders who sell single-family mortgage loans to Fannie Mae service these loans for the Company. For loans it owns or guarantees, the lender or servicer must obtain its approval before selling servicing rights to another servicer.

Fannie Mae�� mortgage servicers collect and deliver principal and interest payments, administer escrow accounts, monitor and report delinquencies, perform default prevention activities, evaluate transfers of ownership interests, respond to requests for partial releases of sec! urity, an! d handle proceeds from casualty and condemnation losses. Its mortgage servicers are the primary point of contact for borrowers and perform implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and loss mitigation activities. Mortgage servicers also inspect and preserve properties and process foreclosures and bankruptcies.

Multifamily Mortgage Business

Multifamily business works with the Company�� lender customers to provide funds to the mortgage market by securitizing multifamily mortgage loans into Fannie Mae MBS. Through its Multifamily business, Fannie Mae provides liquidity and support to the United States multifamily housing market principally by purchasing or securitizing loans that finance multifamily rental housing properties. It also provides some limited debt financing for other acquisition, development, construction and rehabilitation activity related to projects that complement this business. Fannie Mae�� Multifamily business also works with its Capital Markets group to facilitate the purchase and securitization of multifamily mortgage loans and securities for Fannie Mae�� portfolio, as well as to facilitate portfolio securitization and resecuritization activities.

The Company�� multifamily guaranty book of business consists of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans and securities held in Fannie Mae�� mortgage portfolio. Revenues for Fannie Mae�� Multifamily business are derived from a variety of sources, including guaranty fees received as compensation for assuming the credit risk on the mortgage loans underlying multifamily Fannie Mae MBS and on the multifamily mortgage loans held in its portfolio and on other mortgage-related securities; transaction fees associated with the multifamily business, and other bond credit enhancement related fees. As with the servicing of single-family mortgages, multifamily mortgage servicing is performed by the lenders who s! ell the m! ortgages to the Company. Fannie Mae�� Multifamily business is organized and operated as an integrated commercial real estate finance business.

Capital Markets

Capital Markets group's primary business activities include mortgage and other investments, mortgage securitizations, structured mortgage securitizations and other customer services, and interest rate risk management. Capital Markets group manages the Company�� investment activity in mortgage-related assets and other interest-earning, non-mortgage investments. It funds its investments primarily through proceeds the Company receives from the issuance of debt securities in the domestic and international capital markets. Its business activity is focused on making short-term use of its balance sheet rather than long-term investments. Activities Fannie Mae is undertaking to provide liquidity to the mortgage market include whole loan conduit, early funding, real estate mortgage investment conduit (REMICs) and other structured securitizations and dollar roll transactions. Whole loan conduit activities include its purchase of both single-family and multifamily loans principally for the purpose of securitizing them. During the year ended December 31, 2010, it was engaged in dollar roll activity. A dollar roll transaction is a commitment to purchase a mortgage-related security with a concurrent agreement to re-sell a similar security at a later date or vice versa.

Fannie Mae�� Capital Markets group is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Its Capital Markets group creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in its mortgage portfolio. Fannie Mae�� Capital Markets group may sell these Fannie Mae MBS into the secondary market or may retain the Fannie Mae MBS in its investment portfolio. The Company�� Capital Markets group creates single-class ! and multi! -class structured Fannie Mae MBS, for its lender customers or securities dealer customers, in exchange for a transaction fee. The Company�� Capital Markets group provides its lender customers and their affiliates with services that include offering to purchase a range of mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans, and assisting customers with hedging their mortgage business.

Although the Company�� Capital Markets group�� business activities are focused on short-term financing and investing, revenue from its Capital Markets group is derived primarily from the difference, or spread, between the interests it earns on its mortgage and non-mortgage investments and the interest it incurs on the debt the Company issues to fund these assets. Its Capital Markets revenues are primarily derived from the Company�� mortgage asset portfolio. Capital Markets group funds its investments primarily through the issuance of a variety of debt securities in a range of maturities in the domestic and international capital markets. Investors in the Company�� debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks.

The Company competes with Freddie Mac, FHA and Ginnie Mae.

Top 10 Bank Stocks To Own Right Now: M&T Bank Corporation (MTB)

M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; cred it life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

Advisors' Opinion:

• [By The Part-time Investor]

  The following stocks met the criteria in January of 2008 and were put into the initial portfolio:

  Abbot Labs (ABT)Advanced data processing (ADP)Associated Banc-Corp (ASBC)Bank of America (BAC)BB&T Corp. (BBT)Bemis Company (BMS)Anheuser Busch (BUD)The Chubb Corporation (CB)Clorox (CLX)Comerica Inc. (CMA)Diebold Inc. (DBD)Emerson Electronics (EMR)First Dollar Corp. (FDO)First Third BanCorp. (FITB)Gannett Co, Inc. (GCI)General Electric (GE)Hershey (HSY)Illinois Tools Works (ITW)Johnson and Johnson (JNJ)Leggett and Platt (LEG)Eli Lilly (LLY)La-Z-Boy (LZB)McDonald's (MCD)Marsh and Ilsley (MI)M&T Bancorp (MTB)PepsiCo (PEP)Pfizer (PFE)Procter & Gamble (PG)Pentair Ltd. (PNR)Regions Financial Corp. (RF)Rohm and Haas (ROH)RPM International (RPM)Sherwin Williams (SHW)Sysco Corp. (SYY)UDR Inc. (UDR)

  Historical quotes were taken from Yahoo Finance. $10,000 was put into each position, to the nearest whole share, so a total of $349,262.89 was invested. From 1/15/08 through 5/16/13 all dividends were reinvested back into the stock that paid them. If a dividend cut was announced, that stock was sold on the ex-div date of the new, lower dividend.

• [By David Hanson]

  After dominating the mortgage business throughout 2012, Wells Fargo (NYSE: WFC  ) and JPMorgan Chase (NYSE: JPM  ) both reported lower mortgage banking revenue for the first quarter of 2013. While these megabanks lost ground, smaller rival M&T Bank (NYSE: MTB  ) posted a 66% increase in mortgage banking revenue. Is this a sign of the largest banks losing their competitive advantage?

• [By Matt Koppenheffer]

  I feel very good about our investment in Wells Fargo� (NYSE: WFC  ) , I feel very good about our investment in US Bancorp� (NYSE: USB  ) , I feel very good about our investment in M&T Bank� (NYSE: MTB  ) .

• [By Eric Volkman]

  M&T Bank (NYSE: MTB  ) will take a little longer to absorb fellow lender Hudson City Bancorp (NASDAQ: HCBK  ) . The companies said in a joint press release that they believe more time will be needed to address regulatory issues in order to effect the planned acquisition, first announced in Aug. 2012.

Top 10 Bank Stocks To Own Right Now: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:

• [By Paul Ausick]

  Among multinationals, Sterne Agee recommends three banks. The first is Puerto Rico�� Popular Inc. (NASDAQ: BPOP). The mid-cap bank�� stock closed at $28.21 on Friday in a 52-week range of $20.31 to $34.34. Based on Sterne Agee�� 2014 price target of $40.00, Popular has an upside potential of nearly 42% and a 2014 EPS estimate of $2.90. The investment firm�� forward multiple is just 9.6, below the Thomson Reuters consensus multiple of 10.3. Popular received TARP funds in 2009 and could repay the loan in the first quarter of next year, which will give the stock a shot in the arm as well.

• [By Jake L'Ecuyer]

  Popular (NASDAQ: BPOP) shares tumbled 5.54 percent to $27.48 after Morgan Stanley downgraded the stock from Equal-weight to Underweight.

  Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

Top 10 Bank Stocks To Own Right Now: Banco Bilbao Vizcaya Argentaria S.A. (BBVA)

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. The Company also has investments in some of Spain�� companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities. On August 21, 2009, through its subsidiary BBVA Compass, BBVA acquired certain assets of Guaranty from the United States Federal Deposit Insurance Corporation (the FDIC).

Spain and Portugal

The Spain and Portugal business area focuses on providing banking services and consumer finance to private individuals, enterprises and institutions in Spain and Portugal. The main business units included in the Spain and Portugal area Spanish Retail Network, which manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; Corporate and Business Banking, which manages business with small and medium enterprises (SMEs), large companies, institutions and developers in the Spanish market, and Other units, which includes consumer finance, that manages renting and leasing business, credit to individual and to enterprises for consumer products and Internet banking; European Insurance that manages the insurance business in Spain and Portugal, and BBVA Portugal, that manages the banking business in Portugal. The Spanish Retail Network unit services the financial and non-financial needs of households, professional practices, retailers and small businesses. The Corporate and Business Banking unit offers a range of services and products to SMEs, large companies, institutions and developers with specialized branch networks for each segment.

The Company�� European Insurance unit�� activities are conducted through! various insurance companies that provide direct insurance, reinsurance and insurance brokering services in Spain and Portugal and market products for different types of customers (private individuals, SMEs, retailers, professional service firms and providers and self-employed individuals) through this unit�� branch offices. BBVA Portugal manages its banking business in Portugal.

Wholesale Banking and Asset Management

The Wholesale Banking and Asset Management area focuses on providing services to large international companies and investment banking, capital markets and treasury management services to clients. The business units included in the Wholesale Banking and Asset Management area are Corporate and Investment Banking, which coordinates origination, distribution and management of a complete catalogue of corporate and investment banking products (corporate finance, structured finance, syndicated loans and debt capital markets) and provides global trade finance and global transaction services with coverage of large corporate customers specialized by sector (industry bankers); Global Markets, which handles the origination, structuring, distribution and risk management of market products, which are placed through its trading rooms in Europe, Asia and the Americas; Asset Management, which designs and manages the products that are marketed through its different branch networks including traditional asset management, alternative asset management and Valanza (its private equity unit); Industrial and Other Holdings, which helps to diversify the area�� businesses with the aim of creating medium and long-term value through active management of a portfolio of industrial holdings and other Spanish and international projects, and Asia.

During the year ended December 31, 2009, it launched two products: BBVA Bonos Cash (BBVA Cash Bonds), a money market fund for retail customers, and BBVA Bonos Largo Plazo Gobiernos II (BBVA Long-Term Government Bonds), a public-debt fu! nd. In ad! dition it launched through this unit additional fixed-income long-term funds, including BBVA Bonos Corporativos 2011 and BBVA Bonos 2014, which were sold to HNWI customers.

Mexico

The business units included in the Mexico area are Retail and Corporate banking and Pensions and Insurance. BBVA Bancomer launched six new mortgage products for lending to home buyers in 2009. These products included: loans for home improvements, remodeling or additions to homes and financial discount which provides liquidity to construction companies. In Mexico, it operates its pensions business through Afore Bancomer, its insurance business through Seguros Bancomer, its annuities business through Pensiones Bancomer and its health insurance business through Preventis.

The United States

The business units included in the United States area are BBVA Compass and Other units: BBVA Puerto Rico and Bancomer Transfers Services (BTS). During 2009 this unit marketed and sold several new products, The ClearPoints credit card, Business Build-to-order Checking, Compass for your Cause and Money Market Sweep.

South America

The South America business area includes its banking, insurance and pension businesses in South America. The business units included in the South America business area are Retail and Corporate Banking, which includes banks in Argentina, Chile, Colombia, Panama, Paraguay, Peru, Uruguay and Venezuela; Pension businesses, which includes pensions businesses in Argentina, Bolivia, Chile, Colombia, Ecuador and Peru and Dominican Republic, and Insurance businesses, which includes insurance businesses in Argentina, Chile, Colombia, Dominican Republic and Venezuela.

Corporate Activities

The Corporate Activities area handles its general management functions. These mainly consist of structural positions for interest rates associated with the euro balance sheet and exchange rates, together with liquidity management and shareholde! rs��fun! ds.

Advisors' Opinion:

• [By Lee Jackson]

  Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) was raised to Outperform from Neutral by Credit Suisse.

  Caterpillar Inc. (NYSE: CAT) was started as Equal Weight at Morgan Stanley

Top 10 Bank Stocks To Own Right Now: Access National Corp (ANCX)

Access National Corporation (ANC) operates as a bank holding company. The Company has two wholly owned subsidiaries: Access National Bank (the Bank) and Access National Capital Trust II. The Bank is the operating business of the Company. The Bank provides credit, deposit, and mortgage services to middle market commercial businesses and associated professionals, primarily in the greater Washington, D.C. Metropolitan Area. The Bank offers a range of financial services and products and specializes in providing customized financial services to small and medium sized businesses, professionals, and associated individuals. The Bank provides its customers with personal customized service utilizing the latest technology and delivery channels. The Bank�� business is serving the credit, depository and cash management needs of businesses and associated professionals. The products and services offered by the Bank include accounts receivable lines of credit, accounts receivable collection accounts, growth capital term loans, business acquisition financing, online banking, checking accounts, money market accounts, sweep accounts, personal checking accounts, savings /money market accounts and certificates of deposit.

The Bank�� revenues are derived from interest and fees received in connection with loans, deposits, and investments. The Bank operates from five banking centers located in Chantilly, Tysons Corner, Reston, Leesburg and Manassas, Virginia and online at www.accessnationalbank.com. The Mortgage Corporation specializes in the origination of conforming and government insured residential mortgages to individuals in the greater Washington, D.C. Metropolitan Area, the surrounding areas of its branch locations, outside of its local markets through direct mail solicitation, and otherwise. The Mortgage Corporation has offices throughout Virginia, in Fairfax, Reston, Roanoke, and McLean.

Lending Activities

The Bank�� lending activities involve commercial real estate loa! ns, residential mortgage loans, commercial loans, commercial and residential real estate construction loans, home equity loans, and consumer loans. These lending activities provide access to credit to small to medium sized businesses, professionals, and consumers in the greater Washington, D.C. Metropolitan Area. Loans originated by the Bank are classified as loans held for investment. At December 31, 2011 loans held for investment totaled $569.4 million. At December 31, 2011 unsecured loans were comprised of $2.9 million in commercial loans and approximately $124 thousand in consumer loans and collectively equal approximately 0.5% of the loans held for investment portfolio.

The Bank�� commercial real estate loans-wner Occupied represented 30.14% of our loan portfolio held for investment, as of December 31, 2011. Its commercial real estate loans-non-owner occupied loans represent ed18.44% of its loan portfolio held for investment, as of December 31, 2011. The Bank�� residential real estate loans represented 22.56% of the loan portfolio, as of December 31, 2011.

These loans fall into one of three situations: loans supporting an owner occupied commercial property; properties used by non-profit organizations, such as churches or schools where repayment is dependent upon the cash flow of the non-profit organizations, and loans supporting a commercial property leased to third parties for investment. Its residential real estate loans category includes loans secured by first or second mortgages on one to four family residential properties, extended to the Bank clients.

As of December 31, 2011, commercial loans represented 23.15% of the Bank�� loan portfolio held for investment. These loans are to businesses or individuals within its market for business purposes. As of December 31, 2011, real estate construction loans consisted of 5.22% of loans held for investment loan portfolio. These loans include loans to construct owner occupied commercial buildings; l! oans to i! ndividuals; loans to builders for the purpose of acquiring property and constructing homes for sale to consumers, and loans to developers for the purpose of acquiring land, which is developed into finished lots for the ultimate construction of residential or commercial buildings. As of December 31, 2011, consumer loans made up approximately 0.49% of its loan portfolio.

Investment Activities

The Company�� investment securities portfolio is consisted of the United States Treasury securities, the United States Government Agency securities, municipal securities, Community Reinvestment Act (CRA) mutual fund, and mortgage backed securities issued by the United States Government sponsored agencies and corporate bonds. At December 31, 2011, securities totaled $85.8 million. . The securities portfolio is comprised of $45.8 million in securities classified as available-for-sale and $40.0 million in securities classified as held-to-maturity.

Sources of Funds

As of December 31, 2011, deposits totaled $645.0 million. As of December 31, 2011, deposits consisted of noninterest-bearing demand deposits in the amount of $113.9 million, savings and interest-bearing deposits in the amount of $182.0 million, and time deposits in the amount of $349.1 million. The Bank also uses wholesale funding or brokered deposits to supplement traditional customer deposits for liquidity. It participates in the Certificate of Deposit Account Registry Service (CDARS). Through CDARS its depositors are able to obtain FDIC insurance of up to $50 million. As of December 31, 2011, brokered deposits totaled $223,554,000, which includes $192,326,000 in reciprocal CDARS deposits. It also maintains lines of credit with the Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB). At December 31, 2011 there was $284.9 million available under these lines of credit. Borrowed funds consist of advances from the FHLB, senior unsecured term note, FHLB long-term borrowings, subordinated debentures (! trust pre! ferred), securities sold under agreement to repurchase, United States Treasury demand notes, federal funds purchased, and commercial paper. As of December 31, 2011 borrowed funds totaled $123.6 million. At December 31, 2011 borrowed funds totaled $70.9 million.

American International Group Inc (AIG): Current Weakness Offers A Buying Opportunity

Shares of American International Group, Inc. (NYSE: AIG) were down more than 6 percent after CEO Bob Benmosche's "goals" versus "guidance" commentary that was a retraction on the company's plan to achieve a 10 percent plus return on equity (ROE) by 2015.

Benmosche stressed that the goals set in the 2011 re-IPO process--the centerpiece being a 10 percent plus ROE in 2015--were very much aspirational in nature, noting that the company still aspires to achieve them.

Management is unsure whether AIG can reach its aspirational goals by 2015, suggesting these goals may take longer to reach. Goals with time distant deadlines begin to look more like guidance as the deadline approaches, and AIG does not intend to give guidance to the investment community.

[Related -American International Group Inc (AIG): Buy This 'Hated' Company While It's Still An Incredible Bargain]

The knee-jerk reaction of investors is that AIG management is now concerned about its ability to meet its goals in a timely manner, and so they are retracting these goals. That's probably the worst-case interpretation of Benmosche's comments, and that is precisely the correct way investors ought to interpret them.

However, the question is whether this is actually problematic?

Investors should note that precise guidance is tough for an insurance company, which deals with events such as natural disasters. Insurance is not a business that operates under strict degrees of accuracy.

[Related -A Couple Of Facts About Small Bank Failures In The US]

Consensus 2015 EPS forecasts suggest a 2015 ROE range of 7-9 percent without a single analyst believing AIG is capable of achieving a 10%+ ROE in 2015.

" Essentially, AIG management is coming around to a view that investors have already widely shared. Our view has been and continues to be that AIG does not need to achieve a 10% ROE to be an attractive investment. We have and continue to forecast an 8% as attractive enough to buy the stock today," Deutsch! e Bank analyst Joshua Shanker said in a client note.

Best Heal Care Companies To Watch For 2014

If AIG management has merely scaled back its guidance to a consensus view, there is some mystery as to why the stock is down over four days of trading. The market at times is subject to irrational dislocations.

It may be the case that there were some investors whose blue sky 2015 scenario has been reined in. However, for most investors, not much has changed.

The company proposed (and perhaps retracted) a lofty and likely unachievable goal of a 10 percent plus ROE in 2015. This involves execution, cost-cutting, capital management and high interest yields.

On the other hand, the company may be able to execute on some of these plans and achieve a stable 8 percent plus ROE instead. If the company is able to show quarterly consistency, implementation of a nominal dividend and deployment of cash into interest bearing investments, the stock can appreciate.

"We believe AIG shareholders will enjoy healthy double-digit appreciation in the stock with a mere 8% ROE in two years," Shanker added.

As the company monetizes assets for the purpose of share repurchase, the book value per share growth can be accelerated. There is additional upside associated with improved operations at its United Guaranty subsidiary, actualization of deferred tax assets and gains in its diminished derivatives portfolio.

In addition, under the leadership of Benmosche, the company has improved the results of all of its key segments. It has lowered its financing costs and spent heavily on infrastructure, which should help underwriting margins going forward.

AIG offers continued earnings growth, with EPS expected to increase at an average rate of 11.33 percent over the next five years. In comparison, the industry and sector growth rates are estimated at 11.09 percent and 10.54 percent, respectively. The ! S&P 5! 00 is expected to grow 9.78 percent for the same period.

Further, AIG generates excess liquidity that should continue enhance its ability to buyback shares at a discount to tangible book value, likely reducing downside.

Shares of AIG trade 11 times its 2014 consensus earnings estimate, and traded between $30.64 and $53.33 during the past 52-weeks.

As such, investors should take the current weakness in AIG shares as a buying opportunity, as AIG at $47 to $48 represents likely the best risk/reward opportunity.

This 'Unusual' Stock Could Jump 50%

If you enjoy the finer things in life, then you'll love the action taking place in the specialty retail market. Great paintings, sculptures and fine jewelry are not only to be appreciated, but they can make for great investments as well.  

We've already seen one shake-up in the specialty retail industry this year. Billionaire John Paulson is taking famous piano maker Steinway Musical Instruments private for $512 million. The bidding war between Paulson, private equity firm Kohlberg & Co. and Samick Musical Instruments has driven Steinway's stock up 90% this year.

While Paulson is a fan of pianos, it's no secret that billionaire and activist investor Daniel Loeb loves art. He is said to have various pieces of art hanging in his Park Avenue office and enjoys going to art shows.

Loeb and his Third Point hedge fund are coming off one of their biggest wins after helping turn around Yahoo (Nasdaq: YHOO). Loeb sold two-thirds of his position back in July when the stock was trading around $25, locking in a cool half-billion dollars in profits.

Now Loeb's looking to put that capital to work in other markets, with the art market being a perfect candidate. Loeb and his Third Point hedge fund have started their latest activist campaign with leading auction house Sotheby's (NYSE: BID). Loeb joins fellow activist investor Marcato Capital in the stock.

Marcato now owns 6.6% of the company, and Third Point owns 5.7%. Third Point and Marcato join billionaire and notable activist investor Nelson Peltz's Trian Fund Management, which owned 3% of Sotheby's as of the end of the second quarter.

	Wikipedia/Jim Henderson
	Sotheby's headquarters in New York City.

So what are these billionaires and activists expecting to get out of Sotheby's? Are they after the real estate value? Is the company grossly undervalued? Are they playing the expected rebound in art sales? Will they push the company to boost shareholder returns?

The hedge funds involved have kept their public statements vague, and while none of the activists involved has outlined his plans for the stock, it's safe to say there is value in the company that needs unlocking.

Part of Sotheby's moat is its unrivaled name recognition. For those who don't know, Sotheby's is an auctioneer of specialty retail items, which includes fine art, antiques, jewelry and other collectible items. Its roots date to 1744, when it was founded in London.

With the industry being niche, and the fact that Sotheby's is the only major publicly traded auction house, relative valuation is next to impossible. However, from a historical valuation perspective, Sotheby's does not look all that appealing. The stock is trading at near-decade highs on price-to-earnings (P/E), price-to-sales and price-to-book bases.

Thus, there will need to be a catalyst to drive the stock higher. Here are a few possibilities these activist investors could be looking at to unlock value.

Economic Expansion
Sothebys took quite a nasty spill along with the broader economy back in 2008, trading below $9 per share before rebounding to the over $45 it trades at today. As income levels rise and the broader economy strengthens, the demand for the finer things in life, such as art, should also rebound. The company's underlying reliance on the economy is exhibited by the stock's 2.7 beta.

Although the expected boost in sales and earnings, due to a rebounding economy, will likely boost the share price, that's not the sole reason for the activists' investing. Activists generally get involved for something more than market-moving events. They look to generate their own alpha through management shakeups, strategy realignment, balance sheet restructuring, and so on.

Real Estate 
The big news of late, in addition to the activist campaigns, is that Sotheby's is planning to sell its New York headquarters. Stifel Nicolaus has said that those real estate properties could hold unrealized value for Sotheby's, noting that the New York and London properties might be worth $300 million more than is carried on the balance sheet.

It's no secret that one of the activists involved in Sotheby's, Marcato Capital, specializes in real estate investments. That firm may be looking to get its hands on any profits from Sotheby's real estate and return them to shareholders.

Margin Expansion
Loeb and his activist buddies may believe Sotheby's can expand its margins to historic levels. The company's trailing 12-month margin on earnings before taxes (EBT) is 18.4%, while in previous years it has had margins between 27% and 30%. If we think about where earnings would be if the EBT margin were 27%, there is definitely upside here. With a 27% EBT margin, earnings could easily be nearly 50% higher than current levels; assuming Sotheby's keeps its premium 31 P/E multiple, the price target would be $68.

Boosting Shareholder Value
The activists could also be looking at Sotheby's cash on hand. The company has more than $10 in cash per share and could increase its modest 0.8% dividend yield or boost share repurchases. Its debt-to-equity ratio is down to 0.5 as of last quarter, compared with 0.9 in 2009. Sotheby's recently said it was exploring new ways to boost shareholder value, which could include a higher dividend or share buybacks.

Whatever the reasoning behind Loeb's investment, you'd better believe the upside will be realized in a short period. Loeb isn't necessary a long-term investor, rather an opportunist. So the question remains whether he'll treat this like a short-term investment, as was the case with Yahoo, or an ultra-short-term investment, like his stake in Herbalife (NYSE: HLF). 

Sotheby's has only five analysts following it -- compared with the 48 following Apple (Nasdaq: AAPL) -- so it can be tough to get information on the company. But investors can use this to their advantage: Despite the fact that Sotheby's has three activist investors collectively owning 15% of the company, the stock is flat since Loeb's involvement. 

Sotheby's also offers investors downside protection given its inherent moat as the only major publicly traded auction house. The other major player in the $8 billion art dealership industry, Christie's International, is private. Sotheby's other moatlike characteristics include its cash-generating capabilities and strong liquidity. Over the trailing 12 months, Sotheby's managed to generate $237 million in free cash flow. That's $6.50 a share, or an 8.7% free cash flow yield.

Risks to consider: The biggest risk is another pullback in the economy. Investors should also consider the risk that the activist investors announce a sound strategy for unlocking value, sending the stock surging, but ultimately their plans fail, sending the stock plunging.

Action to take --> Get into Sotheby's before the real bidding process begins. If the activists get their way, there could easily be more than 50% upside to the stock over the next couple of years. The stock has a solid moat and business model that makes the downside limited. The company's balance sheet and free cash flow are both relatively solid.

P.S. -- Activist investing is a bit different from buy and hold, and isn't suitable for every investor. Owning "Forever" stocks is, however, for everyone. These companies have large moats that allow them to dominate their industries and as a result, you can add them to your portfolio and simply forget about them. To learn the names and ticker symbols of these stocks -- click here.

Retirement Pros Weigh In on DOL’s Lifetime Income Plan

Retirement planning groups are weighing in with their reviews of the Department of Labor’s proposed rule that would require lifetime income illustrations be given to participants in defined contribution plans, such as 401(k)s and 403(b)s.

In early May, DOL’s Employee Benefits Security Administration announced that it was seeking public input on the proposed rule, and said it would take comments until July 8. However, that comment period was extended until Aug. 7.

Phyllis Borzi (left), assistant secretary of Labor for EBSA, said in releasing the proposal that EBSA is “looking for the best ideas on how to show people what their lump-sum retirement savings look like when they are spread out over all the years of retirement.” Retirees, she said, “run the risk of outliving their savings. If workers have the benefit of seeing how long their savings could last, it might spur better planning for the future, such as adopting more effective savings strategies.”

Best China Stocks To Invest In 2014

A bipartisan group of senators took a cue from the DOL when they introduced a bill in mid-June that would allow workers in retirement plans to receive an annual statement of how their lump-sum savings translate into a lifetime stream of monthly income.

The Lifetime Income Disclosure Act was introduced by Sens. Johnny Isakson, R-Ga.; Christopher Murphy, D-Conn.; Tim Scott, R-S.C.; Bill Nelson, D-Fla.; and Elizabeth Warren, D-Mass.

The companion bill, H.R. 2171, was previously introduced in the House by Reps. Rush Holt, D-N.J.; Tom Petri, R-Wis.; Ron Kind, D-Wis.; and Dave Reichert, R-Wash.

The Insured Retirement Institute told EBSA in its comment letter that it is “highly supportive” of EBSA’s initiative as it enhances “Americans’ understanding of their retirement savings and helps them effectively” plan for retirement.

“Given the prevailing need to improve education about lifetime income needs, we strongly support the concept of providing lifetime income illustrations on participant benefit statements,” said IRI President Cathy Weatherford (right). “These illustrations would provide participants with a better understanding about how much income can be generated from savings and go a long way toward helping participants put their savings in proper perspective. As such, providing lifetime income illustrations may spur participants to begin saving more and help them to plan more effectively for retirement.”

While the American Society of Pension Professionals and Actuaries says that it also supports EBSA’s lifetime income initiative, ASPPA would like to see some enhancements made to the current proposal.

“ASPPA recommends that a lifetime income disclosure be focused and concise,” Craig Hoffman, ASPPA’s general counsel and director of regulatory affairs, told EBSA in his comment letter.

“The [lifetime income] estimates should be calculated using 3%, 5%, and 7% as the three nominal rates of return to provide useful information without overloading the benefit statement,” he said, and “the calculation should be done without any assumption that there will be future contributions by the employer or the employee, because future contributions are rarely guaranteed.”

Also, Hoffman said that ASPPA recommends that the proposal include a “safe harbor” that plan sponsors can rely on “for the assumptions used in calculating the lifetime income stream, and that those assumptions be modified in several ways to facilitate the disclosure regime in a cost-effective manner.”

The modifications would include “setting the time period for the projection as a static age and limiting the form of distribution to a single life annuity and a 50% joint and survivor annuity for a spouse of the same age, to make results across multiple plan sponsors more consistent.

Finally, ASPPA said that DOL’s online calculator could be enhanced to be “more educational and to allow consideration of many different assumptions including retirement assets held outside of the plan, such as in an IRA.” The use of an enhanced DOL calculator or the use of a private service provider online calculator, Hoffman said, “should then be encouraged so participants can individualize the assumptions used to calculate potential lifetime income distribution streams.”

First Eagle’s High Risk Investment in the Gold Industry

Despite plummeting prices and underperformance of industry peers, First Eagle Investment Management LLC continues to invest heavily in the gold industry. The investment firm is not only holding on to previously held stocks, but is increasing his exposure to the market, buying up shares of troubled companies such as Anglogold Ashanti Limited (AU). So the question arises: Why is First Eagle bullish regarding such a company? The answer might lie in the huge discount at which the third-largest gold producer by output is trading, along with a certain degree of long-term optimism.

Huge Holdings Point to Long-Term Commitment

Since First Eagle recently increased its stake in Anglogold by more than 20%, bringing his total holding to over 32.5 million shares, I believe we are looking at a long-term investment. I am keen on pointing this out, since the stock is currently performing very poorly, and has already lost around 275% of its value year to date. Above average production costs and plummeting gold prices have put a huge deal of pressure on the gold miner, leading to very poor results. In addition, since many of its operations are in geopolitically risky countries such as Mali and the Democratic Republic of Congo, shareholders have been shedding this stock in large volumes.

Although Anglogold had a very rough year, and will continue to face elevated cash costs and reduced margins going into 2014, there are some positive signals looking forward. One of the most promising features, are the firm's operations in South America and Australia, which are enjoying solid organic growth. Although investors will have to wait some years for assets in these regions to reach full production, large profits should be achieved in the long-term. In other words, First Eagle surely has its eyes set on the company's new projects, and their future growth potential.

Projected Growth and Low Price

Another attractive feature investors must keep in mind is a stock's growth potential. When looki! ng at Anglogold, this becomes especially relevant, as a comparison to Barrick Gold Corp (ABX) will demonstrate. Anglogold currently offers 13.6% returns on invested capital, compared to Barrick's -2.8%, and has an EBITDA growth rate of 465.7%, the highest in the industry. Thus, whereas the Canadian miner has a negative EPS growth rate of 48%, Anglogold is looking quite profitable going into 2014.

Despite the differences, Anglogold and Barrick at trading at similar values, making choosing between the two stocks an easy decision. Anglogold is particularly attractive, since it has actually reached its 52-week low and thus offers ample room for growth. As the third-largest gold miner, the company will surely recover from its current situation, making First Eagle's investment very profitable in a few years.

Risky Nonetheless

First Eagle might be an Anglogold bull, yet investment gurus do not agree with the company. John Hussman recently sold off 60% of his holdings in the firm, John Burbank and Steven Cohen shed all their shares, and Jim Simons and Jeremy Grantham are also bearish regarding this stock. With inflation costs rising and the price of gold not expected to pick up any time soon, I consider Anglogold to be too risky to invest in.

 

Disclosure: Patricio Kehoe holds no position in any stocks mentioned.

 

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Top 10 Low Price Companies To Own For 2014

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Finding the best stocks under $10 per share is no easy task. Inherently, cheap stocks come with bigger risks because they are either very small companies or a big company that has been beaten down to a low price.

Top 10 Low Price Companies To Own For 2014: Castings(CGS.L)

Castings P.L.C. produces and sells various iron castings. It offers ductile iron castings, spheroidal graphite (SG) iron castings, austempered ductile iron castings, simo castings, Ni-resist castings, and grey iron castings. The company also undertakes the design, including virtual analysis, of ductile and SG iron castings; and produces prototypes and pre-series castings, as well as fully machined ductile iron castings and sub-assemblies. It serves the commercial vehicle and automotive markets. The company has operations primarily in the United Kingdom, Sweden, rest of Europe, and North and South America. Castings P.L.C. is headquartered in Brownhills, the United Kingdom.

Top 10 Low Price Companies To Own For 2014: Apex Minerals NL(AXM.AX)

Apex Minerals NL engages in the mining and production of gold, as well as exploration of mineral resources in Australia. It holds interests in the Wiluna gold project, which covers an area of approximately 50 square kilometers located to northeast of Perth; and in the Youanmi project that covers an area of 40 kilometers located to northeast of Perth. The company is based in West Perth, Australia.

10 Best Growth Stocks To Own For 2014: Tufco Technologies Inc.(TFCO)

Tufco Technologies, Inc., together with its subsidiaries, provides integrated manufacturing services in the United States. The company offers contract manufacturing and specialty printing services. Its services include wet and dry-wipe converting, wide web flexographic printing, hot melt adhesive laminating, folding, integrated downstream packaging, and quality and microbiological process management. The company involved in the contract manufacture of products from various materials, such as polyethylene films, nonwovens, papers, and tissues. Its products comprise disposable wet and dry wipes for home, personal/baby/medical care use, flexible packaging, and disposable table covers. The company also manufactures and distributes business imaging paper products. It converts a range of paper products, including specialty and fine printing papers, thermal papers, inkjet papers, and coated products for use in retail, convenience store, restaurant, dry cleaning, and bank applicat ions. In addition, the company provides business forms products in laser cut sheets and multi-part forms; wide format rolls for drafting and architectural applications; printed and unprinted paper products used in business imaging equipment in market segments comprising architectural and engineering design, high speed data processing, point of sale, automatic teller machines, and office equipment; and various products for the restaurant market, such as children?s placemats, crayons, and guest checks. It markets its products and services through its sales and customer service employees, manufacturer?s representatives, and distributors to multinational consumer products companies, and dealers and distributors of business imaging papers. The company was founded in 1974 and is headquartered in Green Bay, Wisconsin.

Top 10 Low Price Companies To Own For 2014: Labtech Systems Ltd (LBT.AX)

LBT Innovations Limited involves in the research and development of technologies for the healthcare and laboratory supply markets primarily in Australia. It offers MicroStreak technology that enables an automated system for streaking biological samples onto agar plates; and automated plate assessment system, a platform technology for the automation of culture plate screening and interpretation. The company was formerly known as LabTech Systems Ltd and changed its name to LBT Innovations Limited in December 2009. LBT Innovations Limited was founded in 2004 and is based in Adelaide, Australia.

Top 10 Low Price Companies To Own For 2014: Techne Corporation(TECH)

TECHNE Corporation develops, manufactures, and sells biotechnology products, and hematology calibrators and controls worldwide. The company?s Biotechnology segment offers proteins, such as cytokines, and enzyme substrates and inhibitors; antibodies, including polyclonal and monoclonal antibodies; immunoassays comprising quantikine kits for the detection of human and animal proteins, and immunoassays that allow researchers to quantify a specific analyte in a biological fluids sample; clinical diagnostic immunoassay kits consisting of erythropoietin, transferrin receptor, and beta2-microglobulin immunoassays for use as in vitro diagnostic devices; flow cytometry products, such as fluorochrome labeled antibodies and kits; intracellular cell signaling products, including antibodies, phospho-specific antibodies, antibody arrays, active caspases, kinases, and phosphatases, and ELISA assays to measure the activity of apoptotic and signaling molecules; and natural and synthetic c hemical compounds for use as agonists, antagonists, and inhibitors of various biological functions by investigators. Its Hematology segment provides whole blood CBC controls controls and calibrators; linearity and reportable range controls for the assessment of the linearity of hematology analyzers for white blood cells, red blood cells, platelets, and reticulocytes; whole blood reticulocyte controls for manual and automated counting of reticulocytes; whole blood flow cytometry controls for the identification and quantification white blood cells; whole blood glucose/hemoglobin control to monitor instruments, which measure glucose and hemoglobin in blood; erythrocyte sedimentation rate control to monitor erythrocyte sedimentation rate tests; and multi-purpose platelet reference controls, such as Platelet-Trol II and Platelet-Trol Extended for use by automated and semi-automated analyzers, which monitor platelet levels. The company was founded in 1976 and is headquartered in M inneapolis, Minnesota.

Advisors' Opinion:

• [By Rich Duprey]

  Biologics researcher�Techne� (NASDAQ: TECH  ) �will pay a regular quarterly dividend of $0.30 on May 24 to the holders of record at the close of business on May 10.

• [By Rich Duprey]

  Medical device maker Techne (NASDAQ: TECH  ) announced today that it's taking a 100% ownership stake in�Bionostics Holdings for $104 million cash.

Top 10 Low Price Companies To Own For 2014: Boeing(BOE.L)

The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates through five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S), and Boeing Capital Corporation (BCC). The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements, as well as provides related support services to the commercial airline industry. It also offers aviation services support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial and government customers. The BMA segment engages in the research, development, production, and modification of manned and unmanned military weapons systems for the glo bal strike, mobility and surveillance, and engagement markets, as well as provides related services. The N&SS segment is involved in the research, development, production, and modification of products and services to assist its customers in transforming their operations through its network integration, information and cyber applications, command, control, communications, computers, intelligence, surveillance, and reconnaissance space exploration and satellites. The GS&S segment offers operations, maintenance, training, upgrades, and logistics support services for military platforms and operations. The BCC segment facilitates, arranges, structures, and provides financing solutions for its commercial airplanes customers and government customers. Its financing portfolio consists of equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The Boeing Company was founded in 1916 and is based in Chicago, Illin ois.

Top 10 Low Price Companies To Own For 2014: Intl Barrier Technology Inc. (IBH.V)

International Barrier Technology Inc. develops, manufactures, and markets proprietary fire resistant building materials designed to protect people and property from the destruction of fire in the United States. The company uses non-toxic Pyrotite formulation that is used to coat wood panels and has application to engineered wood products, paint, plastics, and expanded polystyrene. It offers Pyrotite, a fire-barrier material designed to prevent ignition and inhibit the spread of flames. The company markets its products as LP FlameBlock fire-rated oriented strand board sheathing for residential roof deck, wall assembly, wildland urban interface zones, and structurally insulated panel market; and MuleHide FR deck panels for the commercial modular market. International Barrier Technology Inc. offers its products to builders through building product distribution companies. The company was formerly known as Barrier Technology Inc. and changed its name to International Barrier Te chnology Inc. in November 1996. International Barrier Technology Inc. was founded in 1986 and is based in Watkins, Minnesota.

Top 10 Low Price Companies To Own For 2014: Dollar Financial Corp.(DLLR)

DFC Global Corp. provides retail financial services to unbanked and under-banked consumers, and small businesses. Its primary products and services include short-term consumer loans, single-payment consumer loans, check cashing services, secured pawn loans, and gold buying services. The company also provides other retail services and products comprising money order and money transfer products, foreign currency exchange, VISA and MasterCard branded reloadable debit cards, electronic tax filing, bill payment, and prepaid local and long-distance phone services. In addition, it offers military installment loan and education services, such as fee based services to enlisted military personnel applying for loans to purchase new and used vehicles. The company provides its products and services through storefront locations, as well as via the Internet. As of August 25, 2011, it operated through a network of approximately 1,300 retail storefront locations. It operates its locations principally under the Money Mart, The Money Shop, mce, Insta-Cheques, Suttons and Robertson, The Check Cashing Store, Sefina, Helsingin Panttism, Optima, and Money Now in Canada, the United Kingdom, the United States, Poland, the Republic of Ireland, Sweden, and Finland. The company was formerly known as Dollar Financial Corp. and changed its name to DFC Global Corp. in August 2011. DFC Global Corp. was founded in 1990 and is headquartered in Berwyn, Pennsylvania.

Advisors' Opinion:

• [By John Udovich]

  Despite�a slow global economy and continued high unemployment in many countries, small cap payday or pawn stocks Cash Store Financial Services Inc (NYSE: CSFS), DFC Global Corp (NASDAQ: DLLR) and Cash America International, Inc (NYSE: CSH) have not exactly been performing well since the start of the year. In fact, these three stocks are the worst performers in the payday or pawn loan sector, down 38.5%, down 14.4% and up 4.6%, respectively, since the start of the year.

Top 10 Low Price Companies To Own For 2014: Voyager Oil & Gas Inc.(VOG)

Voyager Oil & Gas, Inc. engages in the exploration and production of oil and gas in the United States. It primarily focuses on oil shale resource prospects in Montana, North Dakota, Colorado, and Wyoming. As of May 17, 2011, the company controlled approximately 141,500 net acres in the five primary prospect areas comprising 28,000 net acres targeting the Bakken/Three Forks in North Dakota and Montana; 14,200 net acres targeting the Niobrara formation in Colorado and Wyoming; 800 net acres targeting a Red River prospect in Montana; 33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield, and Fergus counties of Montana; and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill, and Chouteau counties of Montana. It supplies energy and fuel for industrial, commercial, and individual consumers. The company is based in Billings, Montana.

Top 10 Low Price Companies To Own For 2014: Alkermes Inc.(ALKS)

Alkermes plc, an integrated biotechnology company, develops medicines that enhance patient outcomes. The company has a diversified portfolio of approximately 20 commercial drug products and a clinical pipeline of product candidates that address central nervous system (CNS) disorders, such as addiction, schizophrenia, and depression. It manufactures and commercializes VIVITROL for alcohol and opioid dependence; RISPERDAL CONSTA for schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia; AMPYRA to improve walking in patients with multiple sclerosis; and BYDUREON for the treatment of type II diabetes. Alkermes? pipeline includes extended-release injectable and oral products for the treatment of prevalent, chronic diseases, such as central nervous system disorders, addiction, and diabetes. The company was founded in 1987 and headquartered in Dublin, Ireland.

Advisors' Opinion:

• [By Roberto Pedone]

  Alkermes (ALKS) is engaged in developing, manufacturing and commercializing medicines designed to yield better therapeutic outcomes and improve the lives of patients with serious diseases. This stock closed up 2% to $33.63 in Monday's trading session.

  Monday's Volume: 3.14 million
  
  Three-Month Average Volume: 1.51 million
  
  Volume % Change: 98%

  From a technical perspective, ALKS trended up here and broke out above some near-term overhead resistance at $34.30 with heavy upside volume. This move also pushed shares of ALKS into new 52-week-high territory, since the stock hit an intraday high of $34.74.

  Traders should now look for long-biased trades in ALKS as long as it's trending above $31.50 and then once it sustains a move or close above Monday's high of $34.74 with volume that hits near or above 1.51 million shares. If we get that move soon, then ALKS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $40 to $43.

How to Take a Stress-Free Holiday Break From Investing

Top 10 Stock Investments For 2014

Getty Images Taking vacation during the holidays get together with family is a time-honored tradition. But if you spend more time than you'd like to admit following the ups and downs of your favorite stocks, you might get nervous at the prospect of letting your portfolio fly on autopilot for a week or longer. Fortunately, you can protect yourself from some of the problems that could arise while you're taking that break from your investing regimen. Using a combination of the following ideas can help you go on vacation without being constantly worried about your investments. 1. Rebalance Your Portfolio If you're not a short-term trader, then there's little reason for you to take dramatic action to change your investment strategy. But one thing to consider in light of the run-up in stocks during 2013 is rebalancing your portfolio. Many investors are surprised at just how far out of balance an investment portfolio can get even in a short period of time. For instance, with the S&P 500 up almost 30 percent this year including dividends while a long-term bond fund tracking an index of Treasuries is down 13 percent, someone who started the year with a 50/50 split between stocks and bonds now has 60 percent of their money in stocks and only 40 percent in bonds. If that's riskier than you're comfortable with, rebalancing to get yourself back to 50/50 will lock in some of your stock gains and let you take advantage of lower bond prices in the process. 2. Look At Less-Volatile Investments Whether you're looking at stocks, bonds, or other assets, some investments within a class will always be less volatile than others. With stocks, one measure of volatility is known as "beta" and generally measures how much you can expect a given stock to rise or fall in relation to broader market moves. A stock with a beta of 1 generally moves about the same amount as the overall market in percentage terms, while a beta of 2 indicates a stock that's twice as volatile and a beta of 0.5 signals half the volatility of the market.

5 Best Penny Stocks To Buy Right Now

This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include a pair of retail downgrades for shopping center staples Bed Bath & Beyond (NASDAQ: BBBY  ) and PetSmart (NASDAQ: PETM  ) . But the news isn't all bad, so why don't we end the week on a bright note, and look first at why one analyst thinks...

comScore deserves a touchdown
Investment banker Cantor Fitzgerald upped its rating on market researcher comScore (NASDAQ: SCOR  ) to "buy" this morning, predicting the stock will hit $20 within a year. As StreetInsider.com reports today, Cantor is endorsing comScore because "the company seems to be gaining traction with new offerings, including validated Campaign Essentials (vCE), Digital Analytix, and Media Metrix Multi-Platform."

Even so, that's not much of an endorsement -- I mean, a "buy," but only a $20 price target? After beating earnings by a penny yesterday, comScore shares have already surged 16% to north of $18. That means there's only 8 percentage points' worth of daylight left between where the stock's at now and where Cantor hopes it to be 12 months from now -- less than the average annual gain on the S&P 500. On the other hand, Cantor may actually be a bit too conservative in its price target.

5 Best Penny Stocks To Buy Right Now: Mad Catz Interactive Inc(MCZ)

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes accessories for videogame platforms and personal computers (PC), as well as for iPod and other audio devices. Its products include videogame, PC, and audio accessories, such as control pads, video cables, steering wheels, joysticks, memory cards, light guns, flight sticks, dance pads, microphones, car adapters, carry cases, mice, keyboards, and headsets. It markets its products primarily under the Mad Catz, Saitek, Cyborg, Eclipse, Joytech, GameShark, Tritton, and AirDrives brands. The company also develops flight simulation software; operates flight simulation centers under its Saitek brand; operates a videogame content Website under its GameShark brand; publishes games under its Mad Catz brand; and distributes games and videogame products for third parties. It distributes its products through retailers in the United States, Europe, and Canada, as well as in Australia, Japan, Korea, New Zeal and, and Singapore. The company was founded in 1989 and is headquartered in San Diego, California

Advisors' Opinion:

• [By Bryan Murphy]

  If the name Mad Catz Interactive, Inc. (NYSEMKT:MCZ) rings a bell, it might be because yours truly penned some bullish thoughts on the video-gaming hardware (joysticks, control pads, headsets, etc.) back on August 20th. Neither MCZ nor my write-up were received as anything partially special at the time - it was just another stock dissected by just another guy, and you may or may not have given it a second thought. The 37% rally in the meantime, however, may garner a little more attention.

5 Best Penny Stocks To Buy Right Now: Summit State Bank(SSBI)

Summit State Bank operates as a community bank in Sonoma, Napa, San Francisco, and Marin Counties in California. It offers deposit accounts, such as transaction accounts, money market accounts, savings accounts, time deposit accounts, business checking accounts, time certificates of deposit, sweep accounts, and specialized deposit accounts, including professional, small business packaged, and tiered accounts for larger deposits, and Keogh and IRA accounts. The company also provides commercial and industrial lines of credit and term loans, credit lines to individuals, equipment loans, real estate and construction loans, small business loans, and business lines of credit; consumer loans, including auto loans, mortgage loans, home improvement loans, and home equity lines of credit; and loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs. In addition, it offers banking by appointment, on line and telephone banking services, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier services, safe deposit boxes, night depository facilities, notary services, travelers? checks, lockbox, and banking by mail. Further, the company, through its subsidiary, Alto Service Corporation, provides deed of trust services. It serves small-to medium-sized businesses, professionals and professional associations, entrepreneurs, high net worth families, foundations, estates, and individual consumers. The company operated five offices in Santa Rosa, Petaluma, Rohnert Park, and Healdsburg. Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.

Best Clean Energy Stocks To Own For 2014: PIMCO California Municipal Income Fund III(PZC)

PIMCO California Municipal Income Fund III is a close ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. It is co-managed by Pacific Investment Management Company LLC. The fund invests in fixed income markets. Its investment portfolio include California municipal bonds, and other municipal bonds and notes; California variable rate notes and other variable rate notes; California variable rate demand notes and other variable rate demand notes; U.S. treasury bills; and call options written and put options written. Allianz Global Investors Fund Management LLC serves as an investment Manager to the fund. PIMCO California Municipal Income Fund III was formed in 2002 and is based in New York City.

5 Best Penny Stocks To Buy Right Now: Skechers U.S.A. Inc.(SKX)

Skechers U.S.A., Inc. engages in the design, development, marketing, and distribution of footwear for men, women, and children in the United States and internationally. The company offers various products comprising casuals, such as boots, shoes, and sandals for men, as well as slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals; relaxed fit for men; sandals; and casual fusion under the Skechers USA brand name. It also provides a line of sport footwear for men and women, including men?s lifestyle athletic footwear, lightweight women?s sneakers, and sport sandals under the Skechers Sport brand name. In addition, the company offers men?s and women?s casuals, field boots, hikers, and athletic shoes under the Skechers Work brand name; and a range of infants, toddlers, boys, and girls? boots, shoes, and sneakers under the Skechers Kids brand name. Further, its product line includes Skechers Active products, such as casual everyday and sport fusi on sneakers for females; Tone-ups and Tone-ups Fitness products comprising casual and athletic-inspired sandals for women, as well as sneakers; Shape-ups toning footwear for men and women; and Skechers Resistance Runner technical shoes for runners. Skechers U.S.A. markets its products through department and specialty stores, athletic and independent retailers, and boutiques, catalog and Internet retailers, as well as through own e-commerce Website and retail stores. As of February 15, 2011, it operated 105 concept stores, 99 factory outlet stores, and 40 warehouse outlet stores in the United States, as well as 28 concept stores and 16 factory outlets internationally. The company was founded in 1992 and is headquartered in Manhattan Beach, California.

Advisors' Opinion:

• [By Rich Smith]

  Herbalife (NYSE: HLF  ) has had a rough time of things so far this year, and things got even rougher when the multilevel marketer got sucked into an insider trading scandal at KPMG last week. When a KPMG partner was caught selling inside information on two clients he was auditing, Skechers (NYSE: SKX  ) and Herbalife, and subsequently "fired" both clients,�Skechers shares skated away unscathed -- but Herbalife lost more than $100 million in market cap.

• [By Associated Press]

  Federal prosecutors and the Securities and Exchange Commission on Thursday filed criminal and civil charges against fired KPMG partner Scott London for conspiracy to commit securities fraud through insider trading. The 24-page affidavit filed in support of the criminal complaint alleges that London, 50, of Agoura Hills, Calif., provided confidential information about KPMG clients Herbalife (NYSE: HLF  ) , Skechers USA (NYSE: SKX  ) , Deckers Outdoor (NASDAQ: DECK  ) , RSC Holdings, and Pacific Capital to Bryan Shaw, a close friend, from late 2010 until last month. Prosecutors allege that Shaw made more than $1.2 million in illicit profits by trading in advance of company announcements on earnings results or mergers.

• [By Dan Moskowitz]

  Skechers (NYSE: SKX  ) has is up 65% year-to-date, outperforming Brown Shoe (NYSE: BWS  ) , Wolverine World Wide (NYSE: WWW  ) , Deckers Outdoor (NASDAQ: DECK  ) , and Nike (NYSE: NKE  ) , which have appreciated 26%, 39%, 62%, and 43%, respectively. Skechers' upside move is justifiable based on the company's recent performance. At the same time, this doesn't mean Skechers will offer the best long-term investment opportunity in this group.

5 Best Penny Stocks To Buy Right Now: Pizza Inn Inc.(PZZI)

Pizza Inn, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out, and express restaurants in the United States and internationally. Its buffet restaurants offer dine-in, carryout, and catering services, as well as delivery services. The company?s delivery/carryout restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments. Its express restaurants serve its customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, athletic facilities, or other commercial facilities. The company operates restaurants under Pizza Inn trademark. As of July 1, 2011, it owned and operated 5 restaurants; and franchised approximately 300 restaurants. Pizza Inn, Inc. was founded in 1958 and is based in The Colony, Texas.

After Market: Stocks Circle in a Holding Pattern, Airlines Glide Lower

Hot Low Price Companies To Invest In Right Now

Investors took a wait-and-see attitude Tuesday, but airline stocks lost altitude. The market is in a holding pattern until 2 p.m. Wednesday, when the Fed reveals details of this week's FOMC policy meetings, and whether it's ready to begin cutting back on its main economic stimulus program. If it does begin to taper, the next debate will begin immediately: Is that good or bad for investors? On Wall Street today, the Dow Jones industrial average (^DJI) edged down 9 points, the Nasdaq composite (^IXIC) fell nearly 6, and the Standard & Poor's 500 index (^GPSC) lost 5 points. The Dow's gainers were led by a pair of companies hiking their dividends. 3M (MMM), which makes everything from Post-It notes to medical equipment, rose 3 percent after increasing its payout by 35 percent. And Boeing (BA) rose 1 percent. It boosted the dividend by 50 percent and announced a big stock buyback. The other big blue chip winner was Visa (V), which gained another 2.5 percent. Its stock is now up 43 percent from a year ago. On the downside, Verizon (VZ), IBM (IBM), McDonald's (MCD) and Microsoft (MSFT) all lost about one percent. Microsoft says it will not name a new CEO until next year. And airline stocks were broadly lower. United (UAL) and Delta (DAL) both fell 3 percent. American Airlines (AAL), which completed its merger with U.S. Airways last week, fell 2 percent. And Southwest (V) also lost 2 percent. Brokerage recommendations gave a boost to several issues. Data storage companies Seagate (STX), up 3 percent, and Western Digital (WDC), up 2.5 percent, following JP Morgan upgrades. And iRobot (IRBT) surged 17 percent after Raymond James gave it a 'strong buy.' Shares of Facebook (FB) rose 2 percent, hitting an all-time high. The social media giant is rolling out new video ads this week. That's expected to boost revenue. The question is, will it alienate users? On the downside, Targacept (TRGT) lost more than a third of its value. A clinical trial of its schizophrenia drug did not meet expectations, and the company is dropping development. And chicken producer Sanderson Farms (SFAM) lost 3.5 percent as earnings fell far short of expectations. What to Watch Wednesday: The Commerce Department releases housing starts for November at 8:30 a.m. Eastern time. Federal Reserve policymakers release a statement on interest rates at 2 p.m. The Senate Finance subcommittee holds a hearing on retirement security. These major companies are due to report quarterly financial results: FedEx (FDX) General Mills (GIS) Lennar (LEN) Neiman Marcus Paychex (PAYX) Oracle (ORCL) -

Dividend Stocks Doing Fine But Utilities Looking Dim

Excerpted from the Dec. 13 Top 25 issue of Forbes Dividend Investor.

On Friday, December 6, stocks cheered the strong November jobs report and the major equity indexes rallied to new highs, but then hit a four-day skid going into last Friday.  A strong catalyst for the profit taking: the two-day Federal Open Market Committee policy meeting on Tuesday and Wednesday.

The fear is that the raft of upbeat economic data will prompt the Fed to slow its current pace of $85 billion in monthly purchases of long-term U.S. Treasury bonds and agency-backed mortgage securities, putting upward pressure on interest rates, which have already moved sharply in the past 17 months. The yield on the 10-year U.S. Treasury note has more than doubled to 2.87% from 1.40% in July 2012—and it's up from 1.6% just since May 1 of this year.

Higher rates have certainly been toxic for longer maturity bonds.  Since May 1, the iShares Barclays 20+ Year Treasury Bond (TLT) ETF is down -15.3%. Stocks have been a good place to be, with the S&P 500 up 13.7%, but not all equities, especially dividend stocks, have handled higher rates with aplomb.

Tough Time For REITs & Utilities

The chart below shows performance of ETFs representing different segments of the stock market since interest took flight in early May. Note that DJ Select Dividend (DVY) has lagged the SPDR S&P 500 (SPY). That's because you'll find a lot of utility stocks in the DVY. Utilities—tracked by the XLU—tend to get treated like bonds because they usually offer income with a miniscule growth component.

For REITs, it's been ugly.  The Cohen & Steers Realty Majors (ICF) is down 14% and the mortgage REITs in the REM have been hammered nearly 20% lower as rates have moved higher.

It's important to note that not everything with a fat yield has a hard time with higher interest rates.  The Alerian MLP Index (AMLP) is up better than 2% in price since May 1, while business development companies, tracked by BIZD, are up 6.7%.

In the Forbes Dividend Investor Top 25 new money buys, you'll find two BDCs, THL Credit (TCRD) and Prospect Capital (PSEC), yielding 8% and 12%, respectively.  Three diverse MLPs are also recommended again this week: Hi-Crush Partners (HCLP), Susser Petroleum (SUSP) and AllianceBernstein (AB), an investment management partnership.

Note, too, that regional banks in the KRE have been stellar performers. Among the peewees of the financial sector looking good now are Ames National (ATLO) and Oritani Financial (ORIT).

Since July 11, 2012, our 234 recommendations of dividend-paying stocks and subsequent sell recommendations have produced a total return of 24.1% with a 5.7% average yield at time of purchase.  If you had instead bought and sold the SPDR S&P 500 (SPY) at each of the same times, you would have earned 19.2% total return with an average yield of 1.94%.

Below is the Top 25, ranked by score on our model.  Other recommendations may also be suitable for fresh buying, but these 25 stocks rank highest along the criteria by which they were originally chosen. The three columns on the far right show each stock's percentage discount from five-year average multiples on ratios of price to sales, book value and earnings. The average yield of these stocks is 5.0%. –JD

click to enlarge

For the complete Top 25 and new dividend stock recommendations every Monday and Wednesday, click here for a special offer from Forbes Dividend Investor.