Say What!? Symbian Still Beats iOS in China

Yes, you read that headline correctly. Nokia's (NYSE: NOK  ) Symbian is still alive -- but not doing well -- in China. That's not surprising considering the company abandoned Symbian a few years back and has since moved on to the Windows Phone platform. According to a recent report by Kantar Worldpanel ComTech, Symbian accounts for 23% of installed base mobile OS', while iOS has 19.9%.

But that's all about to change.

Apple's (NASDAQ: AAPL  ) iOS is expected to overtake Symbian over the next two quarters to become the No. 2 installed base smartphone platform in China. Even with Nokia's switch to the Windows Phone OS, Chinese smartphone users aren't staying with company.

That's because Chinese consumers are rapidly switching to Android. At the end of Q1 2013, Android accounted for more than 50% of the smartphone installed base market share in China. Android's growth is partly due to the plethora of inexpensive phones running the mobile OS. This has come about with help from Chinese brands like Lenovo, Huawei, Coolpad and Xiaomi, which make up one in five active smartphones in the country -- and their market share is growing fast.

The big smartphone player in China, though, is (surprise!) Samsung. The company is the fastest-growing brand in the country and has over 15% of the smartphone installed base. Samsung recently debuted the new Galaxy S4 Mini, which is expected to compete directly with Apple's iPhone 4S and a possible iPhone Mini (if the lower-cost iPhone ever becomes a reality). There's no set launch date for the S4 Mini in China (or anywhere yet), but the phone could pose a serious problem for Apple. Strategy Analytics expects the S4 Mini to be priced 5% lower than the iPhone 4S -- leaving Apple to sell an older, smaller phone for a higher price.

This could all change in an instant
In just a few weeks Apple is expected to debut a new iOS -- maybe even a new iPhone, though that's less likely. But without cheaper phone for emerging markets, Apple should be concerned about the S4 Mini. If Apple doesn't deviate from its current strategy, it's likely the company will continue to lose ground to Samsung and Android in China.

Apple CEO Tim Cook said at the end of April that the company will double the amount of Apple Stores in China over the next two years, and make the iPhone 4 "more attractive" to Chinese consumers. But I think selling an old phone as a mid-priced smartphone is a problematic strategy. Investors and consumers need something new from Apple that isn't in a price point beyond most Chinese consumers' reach. Apple can keep its high-end reputation intact and still release a mid-priced phone with great features; the two are not mutually exclusive.

Top 10 Biotech Stocks To Watch Right Now

Although Apple isn't exactly winning in China, the company is nowhere near being out of the Chinese smartphone game. But Apple hasn't done itself any favors by sticking to seemingly old principles of selling high-end phones with big margins while ignoring other price points. This refusal to adjust strategy hasn't built investor confidence as the company's stock price has plummeted over the past several months. Some question whether Apple remains a buy. To help  answer that question, The Motley Fool has put together a list of reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

10 Best Blue Chip Stocks To Invest In 2014

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) cranked higher again today, buoyed by the Federal Reserve's comments on its stimulus program and from a strong earnings report by Home Depot (NYSE: HD  ) . The blue chips finished up 0.3%, or 52 points.

Regarding the Fed, investors were warmed by remarks from New York Fed President William Dudley, who said that he wasn't sure whether the Fed would dial down or increase its $85 billion bond-buying program in the coming months due to economic uncertainty. The comments seem to fly against recent murmurs from a number of Fed members that the time to scale back the quantitative was fast approaching. Earlier in the day, James Bullard, the Fed president in St. Louis, said the European Central Bank would do well to follow the Fed's lead and implement a similar stimulus program. The Fed will remain in the spotlight tomorrow as Ben Bernanke speaks before and Congress's Joint Economic Committee, and in the afternoon, the minutes from its latest policy meeting will be released.

10 Best Blue Chip Stocks To Invest In 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Louis Navellier]

  IBM (NYSE:IBM) is an international IT company made famous by its line of personal computers and various IT services. A year-to-date gain of 18% shows IBM stock has a lot to offer.

• [By Paul]

  IBM. Emerging markets are a big growth driver for this computer systems and software provider. Not only that, Resendes says, IBM has "a bullet-proof balance sheet that will allow it to weather the current storm and position it for superior growth and profitability in the long term." He thinks the stock, which recently traded at $93, is worth $120 a share: ''There are some obvious companies that offer much bigger discounts, but you have to incorporate the safety factor. You're getting a premium company here that's a good spot to be in within the tech space."

• [By Jim Cramer]

  When this company talked about lofty EPS for 2015, initially the street was skeptical especially after IBM reported a blah quarter soon after the expectations were laid out. I now think the company has $20 earnings per share capabilities out three years and that $13 is doable for 2011. You keep the multiple the same and you get a $169 stock. I think it does just that. This one's cheap, way too cheap and it will be cheap next year, too, but on a bigger earnings base which is how it can get to my price target.

• [By Peter Hughes]

  International Business Machines (IBM) -- our aggressive pick for the year -- is one of the world's most dominant technology companies, with annual revenues of $105 billion and net income of $16 billion.

10 Best Blue Chip Stocks To Invest In 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Hawkinvest]

  Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.

  Here are some key points for CVX:

  Current share price: $104.25

  The 52 week range is $85.63 to $110.01

  Earnings estimates for 2012: $12.66 per share

  Earnings estimates for 2013: $13.20 per share

  Annual dividend: $3.42 per share which yields 3.1%

• [By Chuck Carlson]

  Chevron provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in petroleum operations, chemicals operations, mining operations, power generation and energy services. Cramer holds 500 shares of CVX stocks. CVX has a dividend yield of 3.21% and returned 10.91% since the beginning of this year. It has a market cap of $195.53B and a P/E ratio of 8.52. Phill Gross and Robert Atchinson invested over $300 million in CVX.

Top 10 Penny Stocks To Invest In 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By ChuckCarlson]

  Colgate-Palmolive Company (CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company has raised distributions for 48 years in a row. The 10 year annual dividend growth rate is 12.40%/year. The last dividend increase was 9.40% to 58 cents/share. Analysts are expecting that Colgate Palmolive will earn $5.52/share in 2012. I expect that the quarterly dividend will be raised to 64 cents/share in 2012. Yield: 2.60%

10 Best Blue Chip Stocks To Invest In 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Kevin M. O'Brien]

  Apple Inc. (AAPL) will reach $500.00/share at some point in 2012. I view Apple as trading at an extreme discount right now. I am expecting to see a run-up in price ahead of the company's next earnings call on January 17, 2012. I am also expecting that this earnings release is going to be absolutely fantastic. It would be a wise choice to block out all the negative rumors and sentiment surrounding Apple right now. This is a stock that is so attractively priced right now that it will not stay at this level for very long. Check back with me after January 17th next year.

• [By ANDREW]

  I am a huge believer in Apple’s brand internationally and I think they still have more room to grow than people think.  We all know the Iphone 5 is coming out and I think the sales will be insanely good.  People buy these products not only because they are great, but because they are the only fashionable computer item on the market.  Many people have no problem at all paying the large premium for Apple’s stuff just to look cool.  That’s not the reason everyone does it but it’s a reason that all the challenger companies won’t be able to touch a large % of Apple’s core user base.  Apple is in a league of their own and will stay that way for the foreseeable fut ure.  Any Apple naysayer makes very weak arguments against the investment.  Some people buy computers to get the most bang for their buck.  Apple users proudly pay the big premium.  That’s why they keep beating expectations on Wall Street.  They don’t pay a dividend but certainly could at any time.  They are a cash cow already sitting on a mountain of cash.  I can see the company going over $500 before the end of 2012.  Very strong buy.

10 Best Blue Chip Stocks To Invest In 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Louis Navellier]

  Philip Morris International (NYSE:PM) is involved with the manufacture and sale of cigarettes and other tobacco products in over 180 countries across the globe. Year to date, PM stock is up 16%, compared to a loss of nearly 2% for the Dow Jones.

10 Best Blue Chip Stocks To Invest In 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Jeff Reeves]

  Despite a very rough 2011 so far, payment processor Visa (NYSE:V) is right there beside Apple with gains of nearly 30% since the first of the year. Visa stock continues to set 52-week highs and is within striking distance of new all-time highs above $97.

  Visa doesn’t have quite the track record of many blue chips, having only gone public in 2008. However, there are some big reasons to expect that the recent growth is not just a flash in the pan.

  For starters, the demographic trends are hard to ignore. The percentage of cashless transactions continues to rise. Despite rapid growth from fees for payment processing, 40% of all transactions in the U.S. still are done with cash or paper checks. That’s to say nothing of rapid growth of debit and credit card business in emerging markets. Visa’s logo is everywhere and will only be accepted in more places as the months go by.

  And don’t forget, Visa is not a financial stock. Service fees account for more than one-third of revenue — meaning the stock is little more than a toll-taker on the road between a merchant and a customer’s checking account. It is not exposed to bad debt the way financial stocks like Bank of America (NYSE:BAC) and others are.

  Visa has seen year-over-year earnings growth every single quarter since going public, and it should keep up that growth. Additionally, revenue was up 17% from fiscal 2009 to fiscal 2010 and is forecast to jump another 12% in fiscal 2011.

  There is big growth to be had at Visa. It might not be Apple, but its strong growth potential and dominant brand make it a go-to stock for large-cap investors.

10 Best Blue Chip Stocks To Invest In 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By ETF_Authority]

  McDonald’s Corporation (MCD), together with its subsidiaries, operates as a foodservice retailer worldwide. The company has raised distributions for 35 years in a row. The 10 year annual dividend growth rate is 26.50%/year. The last dividend increase was 14.75% to 70 cents/share. Analysts are expecting that McDonald's will earn $5.73/share in 2012. I expect that the quarterly dividend will reach 77 cents/share in 2012. Yield: 2.80%

• [By Quickel]

  McDonald's, is just such a solid stock with the combination of growth, safety and income. We believe that MCD should be headed to $110 this year, which will not be as strong as some of our other targets. Yet, we also will be picking up a solid 2.8% yield that is attractive. Further, MCD has done a great job dealing with currency issues and has not seen a slowdown despite issues in Europe and China. We believe that MCD will continue to offer growth and value this year, and we like it to offset value and growth plays with income investing.

  Entry: $99.58

  Allocation: $2500

  Target: $105, $110

• [By Jeff Reeves]

  McDonald’s (NYSE:MCD) isn’t quite as dramatic as Apple when it comes to stock performance. The company has “only” doubled since 2007 and “only” tripled since 2005 — compared with 330% gains since 2007 and 900% gains since 2005 for Apple.

  But you have to admit, those gains still are incredibly impressive — especially for a mammoth blue chip like McDonald’s that is dominant worldwide.

  Also worth consideration is the fact that, since 2007, McDonald’s has paid dividends totaling $9.26 per share. Since McDonald’s stock was trading around $45 four years ago, that means on top of doubling your money via the share appreciation, you would have gotten back about 20% of your initial investment via dividends alone. Or if you reinvested those funds, you really could have supercharged your returns even more.

  Looking forward, McDonald’s shows no signs of slowing down. It has surpassed analysts’ expectations in?four of its past five earnings reports, most recently with second-quarter numbers boasting a 15% increase in profits. While its revenue has risen at a modest 3.6% annual rate during the past five years, net income has surged at a 14.6% annual rate — proving MCD can maintain margins and grow profits even if sales don’t soar.

  McDonald’s, like Apple, knows how to deliver small-cap gains despite its blue-chip size. That makes this pick a keeper.

Airline Demand Takes Off

Most major U.S. airlines reported second-quarter earnings last week, and profitability generally met or exceeded expectations. From a unit revenue perspective, most airlines had a rough spring, but this was offset by a significant year-over-year decline in fuel prices.

However, oil prices have begun to rise once again, and Gulf Coast jet fuel prices have climbed by $0.20 per gallon since the end of June. As a result, airlines will need revenue growth to accelerate this summer and beyond in order to deliver further earnings improvement. Fortunately, all of the major airlines have seen relatively strong demand for the summer season, and most expect to see unit revenues continue to increase this fall. This should allow the airlines to maintain their recent earnings momentum.

Summer demand looks strong
Delta Air Lines (NYSE: DAL  ) has been at or near the top of the industry in terms of unit revenue growth for the past two years. The carrier saw very strong demand around the July 4 holiday, which is helping to drive an expected 3% improvement in unit revenue for July. Management expects unit revenue for the rest of the quarter to improve in a similar fashion, as Delta continues to gain share in the corporate market.

By contrast, United Continental (NYSE: UAL  ) reported very disappointing unit revenue numbers for most of 2012, due to integration problems. However, the company has made up a little bit of ground in 2013, leading the industry in unit revenue gains in several different months, including June.

United's outlook for July is similar to Delta's, with unit revenue projected to improve 2.5%-3.5%. However, the company expects some strengthening in August and September, with unit revenue expected to increase by 3%-5% for the full quarter. Some of the upside may be due to United's poor performance last summer (when a variety of reliability problems led many customers to take their business elsewhere), making for easier comparisons.

US Airways (NYSE: LCC  ) has lagged the industry a bit in unit revenue performance during 2013, because its capacity has been growing due to the addition of larger Airbus A321 aircraft to its fleet. However, management expects June unit revenue to increase by around 4%, followed by 2%-4% gains in August and September. This implies that US Airways will keep pace with the rest of the industry on the unit revenue front, which should lead to strong profitability due to good cost control.

The outlook is murkiest at Southwest Airlines (NYSE: LUV  ) , which has gone from industry darling to problem child recently. Like US Airways, Southwest is adding larger aircraft to its fleet, which depresses unit revenue. However, the integration of AirTran is causing additional headwinds, which led to unit revenue declines in each month last quarter. Fortunately, the tide seems to be turning. Unit revenue is expected to show a 3% improvement in July, and management seems relatively happy about advance bookings for the rest of the quarter.

A stabilizing industry
The overall picture in the airline industry this summer is one of stability. While jet fuel prices have risen somewhat in the past month, they are still comparable to last summer's levels. Meanwhile, all of the major airlines expect to post modest but respectable unit revenue increases.

Investors should be cautious in this sector because valuations have risen substantially since late 2012. While the outlook for the industry seems positive, disappointment could lead to a sharp correction for any of these stocks. With that in mind, Delta still seems like the best investment candidate among major airlines, even after reaching a new 52-week high last Friday. Delta continues to post consistent, strong performance, and its cost-reduction initiatives provide further upside in 2014.

Southwest may also be worth a look for long-term investors. It is a contrarian play today, as the investment community seems more pessimistic about Southwest's prospects relative to peers. Southwest is making slow but steady progress on the AirTran integration, and initiatives such as the move to a point-to-point schedule in Atlanta should boost results next year.

On the other hand, I would not recommend investing in United or US Airways at this time. While United has gained a little ground on the industry in terms of unit revenue, its costs have been increasing much faster than rivals' recently. As a result, it was one of the few carriers to post a year-over-year adjusted profit decline last quarter. Meanwhile, US Airways is about to merge with American Airlines, which raises a variety of integration risks, offsetting the company's strong performance.

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Why SEI Investments's Earnings Are Outstanding

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on SEI Investments (Nasdaq: SEIC  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, SEI Investments generated $234.4 million cash while it booked net income of $206.8 million. That means it turned 23.6% of its revenue into FCF. That sounds pretty impressive.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at SEI Investments look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only -0.0% of operating cash flow, SEI Investments's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 6.1% of cash flow from operations. Overall, the biggest drag on FCF came from changes in accounts receivable, which represented 14.0% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Looking for alternatives to SEI Investments? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add SEI Investments to My Watchlist.

Are Subprime Loans Fueling Auto Sales?

A new report suggests that the Dodge Avenger may be especially popular with subprime new-car buyers. Photo credit: Chrysler

New-car sales have come a long way since the dark days of the economic crisis. Sales in 2009 hit lows not seen since the early 1980s -- but since then, things have picked up considerably. There are a lot of good reasons for that. The economy may not be booming, but more people are back to work, and more people are feeling confident that their jobs aren't in danger.

But lately, there have been a few signs popping up to suggest something worrisome. One of the drivers of new-car sales growth might be one of the factors that caused the economic crisis in the first place: subprime loans.

Car sales are up – and subprime lending may be, too
The worst year for sales in almost 30 years came in 2009, with only 10.4 million "light vehicles" (the industry's term for cars, pickups, and SUVs) sold. That represented a huge drop from the 16-million plus that had been common in the years leading up to 2008's banking crisis.

Sales aren't back to those 16-million-plus levels yet, but they've rebounded nicely. Automakers sold a total of 14.5 million new cars and trucks in the U.S. last year. And they're still improving: Most analysts expect sales to come in well over 15 million in 2013.

We know now, though, that a lot of the growth (not just in car sales) that we saw last decade was driven by subprime lending, the practice of making loans to people with poor credit ratings. Those loans were packaged into "asset-backed securities," sort of like bonds, and sold to hungry investors.

A lot of those investments didn't work out well, because a lot of those loans probably shouldn't have been made in the first place. That practice dropped out of sight for a while, but lately it has started to surface once again -- with car loans. That has some experts worried.

"White hot" demand for securities backed by subprime auto loans
A Reuters report earlier this month noted  that securities made from subprime auto loans were "white-hot" -- and just as in the economic crisis, some concerns are being raised both about the quality of the loans and about the ratings on the securities.

Some issuers are going to "deep, deep subprime," Reuters said -- borrowers with FICO credit scores around 500. And demand for these kinds of securities could be fueling a push to make more loans to subprime car buyers. That, in turn, could be nudging new-car sales upward. And there's some evidence that some automakers are benefiting more than others.

Are some automakers getting an outsized benefit from increased subprime lending?
This past week, auto-lending hub CarFinance.com released a list of the top 10 new vehicles bought by its below-prime borrowers over the last six months. On that list: Four Chrysler products, three Kia (NASDAQOTH: KIMTF  ) products, two Nissans, and a Ford (NYSE: F  ) -- the Focus compact.

At the top of the list? The Dodge Avenger, pictured above.

CarFinance.com's data is a limited pool, but I found it interesting, not least because Chrysler and Kia have both made huge sales gains in the U.S. since the financial crisis.

And we know that a lot of Americans saw their credit ratings take big hits during and after the worst of the downturn. An automaker that was quietly making it easier for folks with damaged credit ratings to buy new cars might be seeing outsized gains nowadays

Top Stocks To Own For 2014

Is that what's going on?

Not a big deal at Ford, but it might be at Chrysler
It's probably not what is happening at Ford. Ford's in-house financing arm, Ford Credit, has been quite conservative with its lending policies in recent years – shying away, for instance, from joining the trend toward ever-longer auto loan periods. (Those super-long auto loans are a dumb way to buy a new car, by the way.)

Ford Credit CFO Michael Seneski told analysts late last year that neither Ford nor Ford Credit was looking to greatly increase its subprime lending. About 5% to 6% of its loans are considered "high risk," he said at the time, a reasonable number that's in line with the industry average.

The percentage of subprime loans was a bit higher at General Motors (NYSE: GM  ) , which bought subprime lender AmeriCredit back in 2010, but still reasonable.

And that's OK. Subprime loans have been part of the new-car business for a long time. Carefully managed, they can work out well for everybody -- buyers and automakers alike.

But there have been whispers for a while that Chrysler's big sales gains – up 21% last year -- have been fueled by high-volume subprime lending. Last year, credit agency Experian said that 29 of every 100 new-car loans for Chrysler vehicles in the first quarter of 2012 went to buyers with credit scores below 680, which it considers subprime.

Think that could come back to haunt Detroit's No. 3 automaker?

Chrysler owner Fiat (NASDAQOTH: FIATY  ) has been talking lately about a Chrysler IPO, which would return the Detroit automaker's stock to the public exchanges. If Chrysler does decide to go public once again, expect this issue to get a lot of attention.

Thinking about buying Ford stock?
Ford's turnaround has been impressive. But there are great reasons to think that the Blue Oval automaker still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place. Just click here to get started now.

Will These Numbers from Cheesecake Factory Be Good Enough for You?

Cheesecake Factory (Nasdaq: CAKE  ) is expected to report Q2 earnings on July 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cheesecake Factory's revenues will grow 4.2% and EPS will grow 11.8%.

The average estimate for revenue is $473.7 million. On the bottom line, the average EPS estimate is $0.57.

Revenue details
Last quarter, Cheesecake Factory recorded revenue of $463.0 million. GAAP reported sales were 6.3% higher than the prior-year quarter's $435.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.47. GAAP EPS of $0.47 for Q1 were 27% higher than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.7%, 20 basis points better than the prior-year quarter. Operating margin was 8.1%, 120 basis points better than the prior-year quarter. Net margin was 5.5%, 70 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.91 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 516 members out of 646 rating the stock outperform, and 130 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Cheesecake Factory a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is outperform, with an average price target of $36.63.

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Add Cheesecake Factory to My Watchlist.

Is Apple's Tablet Loss Google's Gain?

With Apple's (NASDAQ: AAPL  ) latest quarterly earnings release came news that iPad sales dropped 14% from the same time a year ago. Apple said that when inventory changes were factored in, the drop was actually just 3%, but any slip in iPad sales is a win for the competition. With yesterday's debut of Google's (NASDAQ: GOOG  ) new Nexus 7, is the search giant ready to take on Apple's tablets? 

Nope, probably not.

The next iteration of Nexus
Google's Nexus 7 release was well received last year, and this year the tech dominator upped the ante by adding some significant hardware upgrades and releasing it with the Android 4.3 OS.

The new Nexus 7. Source: Google. 

The new Nexus 7 sports a 1,920 x 1,200 HD screen, LTE connectivity, a rear-facing 5-megapixel camera, a 1.5GHz Qualcomm Snapdragon S4 Pro 8064 processor, dual stereo speakers, and a battery that can last for 10 hours of web browsing. The 16 GB non-LTE Nexus 7 starts at just $229 -- $100 less than the 7.9-inch iPad Mini.

Despite the popularity of the Nexus 7, Google doesn't dominate the tablet market in terms of devices -- though its Android OS does. In the first quarter of 2013, Apple and Samsung claimed the top two market share spots, with Asus and Amazon.com  (NASDAQ: AMZN  ) taking No. 3 and No. 4, respectively. With Google giving away its mobile OS for free, it benefits from getting its search, maps, and advertising services into the hands of millions of tablet users. Gartner expects tablet shipments to increase by 68% this year, and the company hopes to benefit from both its services and selling its own devices.

Top Stocks To Own Right Now

Devices are a different game
But in the device market, Google is at a disadvantage. Samsung is dominating the Android tablet market and Apple's shipment numbers seem completely out of reach. The Nexus 7 did push Asus to the No. 3 spot last quarter, though, beating Amazon's 900,000 tablet shipments by almost 2 million. Google's clearly doing something right with the device, but it's still uncertain if it can make itself a top-device contender in a market it helped define with its software.

I doubt Google's tablet -- although seemingly a solid device -- will change Apple or Samsung's strategy. It'd be best for investors to keep an eye on how the Nexus 7 does in comparison to Amazon's Kindle Fire. The two devices are similarly priced and have the same goal of selling products and services, though they they vary greatly on what's being sold. 

The tech world is being molded by much more than just tablets, and there are four big companies that have Google in their sights. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Allegiant Enters the Big Time

Allegiant Travel (NASDAQ: ALGT  ) has become one of the most successful airlines in the U.S. (albeit not a very well-known one) by attacking a distinct niche: leisure travelers going from small cities to warm weather destinations. Focusing on markets where it does not face any competition has helped Allegiant generate margin performance near the top of the airline industry for the last several years.

Allegiant has also benefited from maintaining a very low cost structure. The company buys used, older-model airplanes that other airlines are replacing, which are often available at bargain prices. This allows Allegiant to concentrate its flying on days of the week and in months with the highest demand. Allegiant's strategy of flying its routes less than daily works because leisure travelers tend to be more flexible in their scheduling than business travelers.

Earlier this month, Allegiant announced a new route that marks a significant shift in the company's philosophy. Beginning in late October, Allegiant will serve the busy Los Angeles-Honolulu route twice a week. This route is already served by all three major network carriers, as well as Hawaiian Airlines (NASDAQ: HA  ) , with each carrier offering multiple daily flights. What is Allegiant up to? More importantly, will it work?

Rethinking the market
A few years ago, Allegiant purchased Boeing 757 aircraft, which are larger and have a longer range than the MD-80s that are the mainstay of Allegiant's fleet. The primary reason for buying the 757s was that they would enable Allegiant to begin flying to Hawaii, a market that fits with Allegiant's overall leisure-oriented strategy.

Allegiant finally entered the Hawaii market in mid-2012, and the company expanded its flight schedule later in the year and then again in early 2013. However, Allegiant has discovered that Hawaii demand is more seasonal than it expected, and some of its markets cannot profitably support even one or two weekly flights during the off-season. As a result, Allegiant is seasonally cutting service on most of its mainland-Hawaii routes in mid-August. It's unclear whether all of those routes will be restarted during the 2014 peak season.

However, this move left Allegiant with a lot of extra 757 capacity. While the company has some ability to use those planes on other routes, the additional capacity cannot be absorbed in many of Allegiant's markets. (The 757s contain nearly 35% more seats than Allegiant's MD-80s.) Entering a busy market like Los Angeles-Honolulu could make sense insofar as there are enough travelers to keep planes full outside of the peak travel season.

Searching for bargain hunters
The real question for Allegiant is whether it can make a name for itself on a highly competitive route. The company's strategy seems quite simple: dramatically undercut competitors on price. Allegiant is offering $99 one-way tickets on the route (in limited quantities). By contrast, the cheapest tickets on market leader Hawaiian Airlines for travel in November are $273.50 each way. Even with Allegiant's additional fees, its cheapest tickets are half the price of tickets on Hawaiian.

Allegiant thus hopes to stimulate new travel demand in the LA-Hawaii market. By offering base round-trip airfares that are hundreds of dollars lower than competitors' prices, Allegiant will make a Hawaii vacation affordable for many travelers who could not pay today's market price. Given the size of the Los Angeles market, it seems quite plausible that Allegiant's lower fares will stimulate enough demand to fill its two weekly round-trips to Honolulu without having a major effect on competitors like Hawaiian.

Foolish bottom line
In some ways, Allegiant's new service between Los Angeles and Honolulu represents a big change. For the first time, it will be serving a route with many direct competitors. That said, the route still fits into the company's broader strategy of stimulating demand for leisure travel to warm weather markets with low fares and infrequent service. Allegiant's lower cost structure and ancillary revenue opportunities give it a good chance to succeed in this new market.

Allegiant stock has dropped by more than 10% this week, based on a relatively minor earnings miss. This could be a good time for bargain-hunting investors to buy stock in a company that has consistently posted strong margins and free cash flow growth over the last 10 years. If Allegiant can succeed in the Los Angeles-Honolulu market, it could create numerous future expansion opportunities in similar markets.

Warren Buffett has claimed that investing in airlines is a surefire way to lose your hard-earned cash. But Allegiant and one other airline are breaking all the rules by keeping costs low and avoiding direct competition -- leading to enviable profits. Click here to learn how these two airlines are leading a revolution in the industry, and discover whether they can keep delivering big gains for shareholders!

10 Best Stocks For 2014

The 3 Dow Stocks That Helped the Index Hit a New All-Time High Today

With a number of Dow Jones Industrial Average's (DJINDICES: ^DJI  ) components reporting today, the index managed to set a new record closing high after it gained 22 points, or 0.14%. The Dow is now resting at 15,567 while the S&P 500 and the Nasdaq both lost ground today, falling 0.19% and 0.59%, respectively.

Let's take a quick look at three of the components that helped the index move higher.

Home Depot (NYSE: HD  ) rose by 0.24% today, after the Federal Housing Agency reported that the home price index rose in May by a seasonally adjusted 0.7% compared with April's results. That now means housing prices have risen 7.3% since May 2012. Home Depot's CFO has stated in the past that homeowners who aren't underwater on their mortgages spend three times as much as those who are. As housing prices continue to rise, we should see fewer Americans still underwater, and that would mean Home Depot's sales should increase.  

United Technologies (NYSE: UTX  ) also announced earnings before the opening bell this morning and beat analysts' estimates of $1.58 per share with $1.70, while revenue came in slightly below expectations. But shares rose 2.95% today on news that the company was raising full-year guidance. Management expects to have sales of $64 billion for 2013, with earnings per share somewhere in the range of $6.00 to $6.15, which is $0.15 higher than the previous estimate range the company gave. While that may sound like a tall order, the company's aircraft unit is really performing well, and as we continue to see increased sales from Boeing and Airbus, investors shouldn't have any doubt that the company can continue performing at a high level.  

Shares of AT&T (NYSE: T  ) also increased today, gaining 0.65% during the regular trading session as the company was set to release earnings after the closing bell. Wall Street was looking to see earnings per share come in at $0.68 and revenue at $31.81 billion. AT&T ended up reporting revenue of $32.08 billion, but after adjusted for a gain related to the sale of stock, earnings per share came in at $0.67. The results were lower than they were during the same period last year, when AT&T reported profits of $3.9 billion, compared with $3.8 billion this quarter. The company also experienced a higher churn rate at 1.02% compared with last year's 0.97%. Lastly -- and this is probably what's causing the most concern from investors -- is that operating expenses rose 4.9% during the quarter. The stock is lower in the after-hours session by 0.89% on the news, but those who own the stock for the safety of its 5% dividend yield don't have much to be concerned about and should stick with the company to see how some big changes play out. AT&T will be incorporating Leap Wireless, which it's buying for $1.2 billion, and will allow customers to upgrade sooner than they can now.  

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2 Industrial Giants Powering the Dow Toward Record Highs

At the outset of earnings season, investors were doubtful of the growth prospects for many of the biggest companies in the U.S. So far, though, the stock market has soared throughout this earnings season as many of those companies managed to outpace lowered expectations and make share price gains as a result. With so many members of the Dow Jones Industrials (DJINDICES: ^DJI  ) reporting their quarterly results this week, it's only natural for the market to put considerations about broader macroeconomic issues on the back burner and focus on individual company results. Given some good news this morning, the Dow is up a nominal 12 points as of 10:50 a.m. EDT, pushing forward to what could be a new all-time high if the index holds onto its current gains.

Driving the Dow higher are two industrial giants, United Technologies (NYSE: UTX  ) and DuPont (NYSE: DD  ) . For United Tech, a combination of continued strength in the aerospace industry and solid gains by its elevator segment sent the stock up 2.9%. The conglomerate also raised the lower end of its previous full-year earnings guidance, pointing to the success of its Goodrich acquisition in boosting sales of parts for large commercial engines. One analyst estimated that 65% of aircraft components now come from United Tech businesses, leaving its future firmly connected with currently rosy projections about aerospace demand over the next couple of decades.

DuPont, meanwhile, has gained 0.7% following its own quarterly report. Results from the quarter were mixed, with earnings falling from year-ago levels but narrowly beating estimates while revenue missed analysts' consensus figures. But the company said it's considering a sale of its "performance chemicals" segment, citing the exploration of "strategic alternatives" -- which might be a result of the recent investment from activist hedge-fund investor Nelson Peltz. The unit, which makes titanium dioxide pigment for paint and the popular Teflon coating, carries lower margins than DuPont's agricultural and energy-based businesses. Lately, potential M&A activity has spurred share price gains, and investors clearly expect DuPont's moves to unlock further value.

Finally, outside the Dow, earnings has helped drive smaller stocks higher as well. Coal stocks are climbing as Peabody Energy (NYSE: BTU  ) jumps 5.4% after reporting that its profit didn't drop quite so much as expected, with cost-cutting measures offsetting some of the negative impact of falling revenue. Peabody's results helped send the Market Vectors Coal ETF up more than 2%, but the industry has a long way to go before it can climb out from under the longer-term losses it has racked up in recent years.

The industrial sector is going through a huge transformation as investors prepare for the end of the "made in China" era. Read all about the biggest industry disrupters since the personal computer in 3 Stocks to Own for the New Industrial Revolution. Just click here to learn more.

3 Reasons to Buy This Stock if It Misses Earnings Estimates

Best Warren Buffett Stocks To Watch For 2014

Warren Buffett's Chinese automaker, BYD (BYDDY.PK) has been the subject of much criticism over the past couple of years as profits have dropped about as much as possible, only a short time after Berkshire Hathaway (NYSE: BRK-A, NYSE: BRK-B) announced its 10% stake in the company. Many investors have gone as far as to say this was outside of Buffett's wheelhouse and that the investment may be one of his worst. Though I am inclined to disagree, it is difficult to argue with the tremendous loss in value for the beleaguered auto company. This week, however, brought new and interesting news to light. The company is in talks with the U.S. government to provide electric buses to cities, subsidized by Uncle Sam. Could this be a catalyst to set the company back on track toward growth?

Yeesh!
When I first caught wind of Buffett's investment in BYD, I was eager to drink the Kool-Aid. Charlie Munger described the company's founder, once the richest man in China, as a cross between Henry Ford and Thomas Edison. That's a strong endorsement, coming from one of the drier, harsher personalities in the investing world (which is itself also a rare accomplishment). The company was gaining a reputation for its batteries and low-cost autos while investors rushed in on the news of the world's greatest investor taking a 10% stake.

Best Warren Buffett Stocks To Watch For 2014: P.T. Telekomunikasi Indonesia Tbk.(TLK)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.

Advisors' Opinion:

• [By Richard Band]

  Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia (population 237 million). As in most countries, the traditional wireline voice business is shrinking, albeit slowly. On the other hand, TLK’s broadband Internet subscriber rolls are estimated to have grown a torrid 50% or more in 2010. Cell phone usage is booming, too. In December, the company predicted it would add 10 million to 12 million new subscribers in 2011, on an existing base of 94 million.

  I love TLK’s conservative balance sheet. Net debt to cash flow (EBITDA) stands at a trifling 0.23, versus a median ratio of 1.3 for the global telecom industry. In addition, thanks to TLK’s strong earnings performance in 2010, I look for a plump double-digit dividend increase this year. Based on my projected dividend rate of $1.43 for 2011, the stock currently yields 4.3%. Buy TLK at $36 or less.

Best Warren Buffett Stocks To Watch For 2014: Marylebone Warwick Balfour Grp(MWB.L)

MWB Group Holdings Plc owns and operates hotels and serviced offices in the United Kingdom. It operates 26 hotels with approximately 1,900 bedrooms under the brand names of Malmaison and Hotel du Vin that provide bars, brasseries, function and private dining rooms, meeting rooms of various sizes, champagne bars, spas, and gyms. The company also offers serviced offices that provide office spaces for small and medium enterprises, corporates, and other clients. It operates 65 centers that provide workstations with office space. MWB Group Holdings Plc was founded in 1994 and is headquartered in London, the United Kingdom.

Best Stocks To Own For 2014: Challenger Financial Services Group(CGF.AX)

Challenger Financial Services Group Limited operates as an investment management firm in Australia. The company operates as an issuer of annuities and a provider of listed and unlisted investment products and services to institutional and retail clients. It also provides various investment choices across a range of asset classes and investment styles, as well as operates as an investment manager. The company was founded in 1985 and is based in Sydney, Australia.

Best Warren Buffett Stocks To Watch For 2014: Graphic Packaging Holding Co (GPK)

Graphic Packaging Holding Company (GPHC), incorporated on June 21, 2007, is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. The Company is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The Company operates in two business segments: paperboard packaging and flexible packaging. The Company�� customers include beverage, food and other consumer products industries. The Company operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific. In December 2011, the Company combined its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft, LLC and Mid-America Packaging, LLC (collectively DNK), both wholly owned subsidiaries of Capital Five Investments, LLC (CVI). Under the terms of the transaction, the Company formed a company, Graphic Flexible Packaging, LLC (GFP), in which it owns 87% interest. On April 29, 2011, the Company acquired all of the assets of Sierra Pacific Packaging, Inc. (Sierra), a producer of folding cartons, beverage carriers and corrugated boxes for the consumer packaged goods industry. In January 2013, the Company acquired Contego Packaging Holdings, Ltd.

Paperboard Packaging

The Company supplies paperboard cartons and carriers. The Company provides a range of paperboard packaging solutions for various end-use markets, such as beverage, including beer, soft drinks, energy drinks, water and juices; food, including cereal, desserts, frozen, refrigerated and microwavable foods and pet foods; prepared foods, including snacks, quick-serve foods for restaurants and food service products, and household products, including dishwasher and laundry detergent, healthcare and beauty aids, and tissues and papers. The Company produces paperboard at its mills; prints, cuts and glues (converts) the paperboard into fol! ding cartons at its converting plants; and designs and manufactures packaging machines that package bottles and cans and, to a lesser extent, non-beverage consumer products. The Company also installs its packaging machines at customer plants and provides support, service and performance monitoring of the machines. The Company offers a variety of laminated, coated and printed packaging structures that are produced from its coated unbleached kraft (CUK), coated-recycled board (CRB), kraft paper and uncoated-recycled board (URB), as well as other grades of paperboard that are purchased from third-party suppliers. The Company manufactures corrugated medium and kraft paper for sale in the open market and internal use.

Flexible Packaging

The Company�� flexible packaging segment includes multi-wall bags, plastics, labels, and the Pine Bluff, AR mill. The Company is a supplier of flexible packaging in North America. Its products include multi-wall bags, shingle wrap, plastic bags and film for building materials (such as ready-mix concrete), retort pouches (such as meals ready to go), medical test kits, batch inclusion bags and film. Its end-markets include food and agriculture, building and industrial materials, chemicals, minerals, pet foods, and pharmaceutical products. Approximately 27% of the plastics produced are consumed internally. The Company�� label business focuses on heat transfer labels and lithographic labels. The Company operates label plants, which produce labels for food, beverage, pharmaceutical, automotive, household and industrial products, detergents, and the health and beauty markets.

The Company competes with MeadWestvaco Corporation and Klabin Company.

6 Key Ingredients to Get for Chipotle Earnings

In the following video, Motley Fool consumer goods analyst Blake Bos takes a close look at Chipotle (NYSE: CMG  ) ahead of its earnings report this Friday. Blake gives investors six key things to watch for in Chipotle's earnings, so they can know whether the chain is continuing to execute on its growth targets, and what they can expect from the stock going forward.

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5 Best High Tech Stocks To Own Right Now

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

What: Shares of staffing service specialist Kforce (NASDAQ: KFRC  ) plunged 16% today after its quarterly results missed Wall Street expectations.

So what: The stock has slumped in recent weeks on concerns over slowing growth, and today's second-quarter results -- adjusted EPS slumped 25%, while revenue slipped 1% -- only reinforce those worries. Additionally, ADP's private survey results this morning indicated that the labor market is cooling, giving investors even more reason to doubt a near-term turnaround.

Now what: Management now sees second-quarter EPS of $0.19-$0.21 on revenue of $277 million-$281 million. "We are making progress toward our goal of accelerating revenue growth in the back half of the year, but there remains much work to do," CFO David Kelly said. "We remain confident in our strategy and long term prospects and expect to capitalize on the operating platform we have built to grow revenue and generate operating leverage." More important, with the stock now off about 25% from its 52-week highs, and trading at a forward P/E of 10, buying into that optimism might be worth looking into. ���

5 Best High Tech Stocks To Own Right Now: Highpower International Inc (HPJ)

Highpower International, Inc., incorporated on January 3, 2006, is engaged in the production and sales of rechargeable nickel-metal hydride (Ni-MH) batteries, lithium batteries and battery systems. The Company also recycles scrap battery materials through outsourcing and resells the recycled materials to some of its customers. The Company�� wholly owned subsidiary is Hong Kong Highpower Technology Company Limited (HKHTC). HKHTC�� wholly owned subsidiaries Shenzhen Highpower Technology Company Limited (SZ Highpower), Highpower Energy Technology (Hui Zhou) Company Limited (HZ Highpower), Springpower Technology (Shenzhen) Company Limited (SZ Springpower) and Icon Energy System Company Limited (ICON) and SZ Highpower�� wholly owned subsidiary Ganzhou Highpower Technology Company Limited (Ganzhou Highpower).

The Company�� Ni-MH rechargeable batteries are solutions for many applications. The Company�� Ni-MH rechargeable batteries offer capacity and energy density. As a result, users can expect a longer time between charges and longer running time. The Company�� Ni-MH rechargeable batteries are available in both cylindrical and prismatic shapes. The Company produces Li-ion batteries and Li-polymer batteries with hundreds of different models and specifications. As of December 31 2011, the Company produced an average of 1,520,000 lithium battery units per month.

The Company�� batteries fall into two main categories, such as consumer batteries and industrial batteries. The Company�� consumer batteries category produces Ni-MH and lithium batteries, which offers power capacity, allowing for longer working time and shortened charging time during equivalent working periods. The Company produces A, AA and AAA sized batteries in blister packing, as well as chargers and battery packs. The Company�� industrial batteries are designed for electric bikes, power tools and electric toys. They are specifically designed for high-drain discharge applications.

The Comp! any competes with SANYO Electric Co., Ltd., Panasonic, BYD Company Ltd., GPI International, Ltd., GS Yuasa Corporation, Desay Corp., Coslight Group, Tianjin Lishen Battery Co. Ltd. and ATL.

5 Best High Tech Stocks To Own Right Now: Section Rouge Media Inc. (SRO.V)

Section Rouge M茅dia inc. does not have significant operations. Previously, the company engaged in editing newspapers and magazines. The company was incorporated in 1996 and is based in Longueuil, Canada.

10 Best Stocks To Watch Right Now: Capital Blf Inc (BLF.V)

Capital BLF Inc. engages in the ownership and rental of nine multi-residential buildings located in the province of Quebec, Canada. The company was founded in 2007 and is based in Dorval, Canada.

5 Best High Tech Stocks To Own Right Now: Asia Pacific Breweries Ltd(A46.SI)

Asia Pacific Breweries Limited engages in the brewing, sale, export, and distribution of beer and stout. It offers a portfolio of approximately 40 beer brands and brand variants, including Tiger beer, Heineken, Anchor beer, ABC Extra Stout, Baron?s Strong Brew, and Bintang beer in 60 countries comprising Cambodia, Laos, Vietnam, Thailand, Singapore, Indonesia, Malaysia, Sri Lanka, New Zealand, Papua New Guinea, New Caledonia, the Solomon Islands, China, and Mongolia. The company was formerly known as Malayan Breweries Limited and changed its name to Asia Pacific Breweries Limited in 1990. Asia Pacific Breweries Limited was founded in 1931 and is based in Singapore. Asia Pacific Breweries Limited is a subsidiary of Asia Pacific Investment Pte Ltd.

5 Best High Tech Stocks To Own Right Now: TRW Automotive Holdings Corporation(TRW)

TRW Automotive Holdings Corp., together with its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components for automotive original equipment manufacturers and related after-markets. It operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics, and Automotive Components. The Chassis Systems segment offers product lines relating to steering gears and systems, foundation brakes, modules, brake controls, and linkage and suspension. The Occupant Safety Systems segment provides airbags, seat belts, steering wheels, and occupant restraint systems. The Electronics segment offers various products comprising safety electronics, radio frequency electronics, chassis electronics, powertrain electronics, and driver assist systems. The Automotive Components provides body controls, engine valves, and engineered fasteners and components. The company offers its products for passenger cars, light trucks, and commercial vehicles worldwid e. TRW Automotive Holdings Corp. was founded in 1904 and is based in Livonia, Michigan.

Advisors' Opinion:

• [By James K. Glassman]

  With auto sales reviving, things are looking up at TRW Automotive (symbol: TRW). The Livonia, Mich., firm is a leading supplier of safety systems to carmakers worldwide -- think seat belts, airbags, and braking and driver-assist systems. Over the past five years, TRW has cut long-term debt by 55%. It now has $1.2 billion in cash on its books -- 62% more than in 2008. And in 2012, it initiated a $1 billion share-buyback program. TRW expects revenues from China and South America to grow 10% a year through 2014, offsetting flat sales in Europe. The stock sells for 8 times estimated 2013 profits.

Don't Give Up on Brick and Mortar

Amazon (NASDAQ: AMZN  ) is firing on all cylinders, and Bezos' e-commerce behemoth will roll over any brick-and-mortar retailer that stands in its way... right?

Amazon's net sales in the company's first quarter were up about $2.02 billion, or 22%. Meanwhile, some brick-and-mortar retailers are struggling to grow their top line, and Amazon is likely at fault (or at least partly). Best Buy (NYSE: BBY  ) , for instance, saw revenue decline 9.6%, and comparable-store sales fall 1.3% from the year-ago quarter. Amazon rival Barnes & Noble continues to face rough waters; revenue continues to slide, and the company's CEO recently resigned.

For brick-and-mortar retailers in Amazon's lane, all is lost -- or so it seems. Is there any hope for Amazon competitors? Possibly. Are brick-and-mortar retail stocks competing with Amazon all a dangerous bet? Not necessarily.

A look at Amazon competitors Best Buy and Wal-Mart (NYSE: WMT  ) reveals some promising numbers.

Leveling the playing field
Believe it or not, Best Buy's stock has trumped Amazon's over the past 12 months, up 50% compared to Amazon's 41% gain. Year to date, Best Buy is up 140%, compared to Amazon's 23% gain. With Best Buy's revenue down, and Amazon's substantially higher, how is this possible? Expectations.

The stock market is all about expectations. If the market expects a business to perform exceptionally well, investors buy up a stock until the buoyant expectations are priced into the stock. Conversely, when investors expect a business to perform poorly, the stock sells off until poor expectations are priced into the stock.

In other words, valuation matters. That's the first reason investors shouldn't give up on brick-and-mortar retail stocks. Greatness is already priced into Amazon's stock. The stock trades at 2.2 times sales. Comparatively, Wal-Mart trades at .6 times sales.

Amazon's price-to-earnings and price-to-free cash flow ratios aren't even meaningful. Quarter after quarter, the company barely slips by with a profit -- sometimes reporting losses. Even worse, in the last thee years, the company's cumulative free cash flow is actually negative.

While investors wait for Amazon to bring in the dough, Best Buy and Wal-Mart both trade at realistic valuations, with free cash flow yields of about 4.5%. Amazon's free cash flow yield? Just 0.13%. Amazon investors obviously expect a very bright future for the company.

Sure, Amazon may grow into its valuation. But Best Buy and Wal-Mart may also outperform their low expectations. Valuation, therefore, levels the playing field.

Where's the money?
Yes, Best Buy's revenue is down this year. But the company is still generating a large amount of cash. Over the trailing 12 months, Best Buy raked in $564 million in free cash flow. Amazon? Just $177 million. That's a paltry number in light of the company's $140.5-billion market cap. (Best Buy's market cap stands at just 9.7 billion.)

How's Wal-Mart faring? Trailing 12-month revenue is at an all-time high. Even better, the company generated a meaningful $11.56 billion in free cash flow in the last 12 months.

It's not the end
Does this mean that Wal-Mart and Best Buy are better investments than Amazon? Not necessarily -- but don't count brick and mortar as dead yet. As an article in The Economist eloquently explained, there are still indications that brick and mortar has a chance against e-commerce:

Bricks-and-mortar retail may be losing ground to online shopping, but it remains more profitable. The physical world is also increasingly capable of taking the fight to its online competitors. Last year online sales of shop-based American retailers grew by 29%; those of online-only merchants grew by just 21%.

Keep your eyes peeled for brick-and-mortar investment opportunities. Sometimes, the greatest investments are found in unloved sectors.

Don't forget about dividends
One of the fortunate benefits of investing in stocks with low expectations is often their meaningful dividend yields. This holds true for both Wal-Mart and Best Buy. If you're on the lookout for high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here.

Top Companies To Own In Right Now

On Tuesday, shares of WD-40�Company (NASDAQ: WDFC  ) rose by as much as 12% before giving back all of those gains�to trade flat by the end of the session.

More specifically, quarterly net sales rose 7% year over year, to $93.1 million, while net income for the quarter came in at $10.3 million, representing an even more impressive 13.2% increase over last year.�Meanwhile, diluted earnings per share rose 15.8% year over year, to $0.66.

To be sure, these earnings crushed analysts' estimates by $0.10,�and the company raised its full-year earnings guidance by around 3.4% to boot, telling investors they now expect to earn between $2.40 and $2.48 per share.

So what happened?
So why did shares of WD-40 retreat as the day wore on?

As fellow Fool Jeremy Bowman�pointed out�Tuesday, some investors are worried that WD-40's growth doesn't seem to support its valuation. And, on the surface, with the stock trading at 22 times next year's estimated earnings, those concerns certainly look valid.�

Top Companies To Own In Right Now: Precision Castparts Corporation(PCP)

Precision Castparts Corp. (PCC) manufactures and sells metal components and products worldwide. Its Investment Cast Products segment offers aerospace structural and airfoil castings; industrial gas turbine (IGT) castings; artificial hips and knees; parts for satellite launch vehicles; landing gear struts and engine inlets for unmanned aerial vehicles; impellers for pumps and compressors; components for armament systems; and alloys for other manufacturers of investment castings. The company?s Forged Products segment provides forged components for jet engines, including fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs, and cases; airframe structural components, such as landing gear beams, bulkheads, wing structures, engine mounts, struts, tail flaps, and housings; discs, spacers, and valve components for steam turbine and IGT engines; shafts, cases, and compressor and turbine discs for marine gas engines; mechanical and structural tubular forged produ cts for energy markets; and forged components for propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves, and structural applications. PCC?s Fastener Products segment offers aerospace fasteners comprising bolts, nuts, nut plates, latches, expandable diameter fasteners, quick release pins, hydraulic fittings, bushings, inserts, collars, and other precision components. It also provides refiner plates and screen cylinders for the pulp and paper industry; metal-injection-molded and ThixoFormed components; grinder pumps and components for sewer systems; gas monitoring systems for the power generation industry; and thread-rolling and trimming dies, pins and steel, and carbide forging tools for fastener production. PCC sells its fastener products and services through a network of distributors and independent sales representatives, as well as through a direct sales and marketing staff. The company was founded in 1949 and is based in Por tland, Oregon.

Top Companies To Own In Right Now: Oplink Communications Inc.(OPLK)

Oplink Communications, Inc., together with its subsidiaries, designs, manufactures, and sells optical networking components and subsystems worldwide. The company?s products are used to expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance, redirect light signals, ensure signal connectivity, and provide signal transmission and reception within an optical network. It offers bandwidth creation products, such as wavelength expansion products comprising dense wavelength division multiplexers (DWDM), coarse wavelength division multiplexers, band wavelength division multiplexers, and DWDM interleavers; and optical amplification products consisting of gain blocks, erbium doped fiber amplifiers, wavelength division multiplexers pump/signal combiners, integrated hybrid components, WDM pump combiners, polarization beam combiners, gain flattening filters isolators, isolators, and tap couplers. The company also offers bandwidth management produc ts, such as optical switching and routing products comprising optical add/drop multiplexers, wavelength selective switches, reconfigurable OADMs, switches, and circulators; wavelength conditioning products that include variable optical attenuators, variable multiplexers, and dynamic band equalization products; and wavelength performance monitoring and protection products consisting of supervisory channel WDM, integrated WDM and tap monitor arrays, optical channel monitors, and wavelength protection subsystems. In addition, it provides optical interconnect products, including connectors and adapters, fixed attenuators, patchcords, and termination and distribution enclosures; and transmission products, such as small form-factor pluggable transceivers, XFP transceivers, CWDM transceivers, bi-directional transceivers, DWDM transceivers, optical supervisory channel transceivers, GEPON products, and 40G/100G transceiver products. The company was founded in 1995 and is headquartere d in Fremont, California.

Advisors' Opinion:

• [By Arohan]

  Another semiconductor company in this list, Oplink designs, manufactures and sells optical networking equipment. Market value is $343 million and the OPLK stock currently trades at 8.35 PE. The company has grown its EPS at 20% clip in the past 5 years and next 5 year growth rate is estimated to be 26%. It has $173 million in cash on books and no debt.

Best Stocks To Own For 2014: Whitbread Holdings(WTB.L)

Whitbread PLC operates hotels, restaurants, and coffee shops in the United Kingdom and internationally. It owns and operates 590 hotels with approximately 43,219 rooms in the United Kingdom and 5 hotels with approximately 1,076 rooms internationally under the Premier Inn brand name; and 379 restaurants under the Beefeater Grill, Table Table, Brewers Fayre, and Taybarns brand names, as well as operates 1,217 coffee shops in the United Kingdom and 654 coffee shops internationally under the Costa Coffee brand name. The company also operates roasters and facing espresso based coffee vending machines; and involves in wholesale of coffee beans. Whitbread PLC was founded in 1742 and is based in Dunstable, the United Kingdom.

It's Not Hard to Swallow Cider's Potential

It might not be a big market at the moment, but the analysts at Rabobank see hard cider sales growing, and like vodka and other distilled spirits before, the real opportunity will be at opposite ends of the spectrum, both in the super-premium market and at the value end.

According to the report, consumption has increased 50% over the past decade, making the segment difficult to ignore. As beer consumption has contracted over the past few years, we've seen more brewers turning to cider and hard teas to supplement and support their operations. Boston Beer (NYSE: SAM  ) , for example, saw depletions for the 13-week period ending March 30 grow 16% from the year-ago period precisely because of the emphasis it placed on its Angry Orchard cider and Twisted Teas.

What brewers like is that cider is not a replacement for beer but a supplement to it, perhaps because women are the biggest consumers of it. Rabobank says 55% of consumers are women under 30, making them a particularly attractive target. And when it comes to ordering drinks, their demographic is more likely to eschew the middle market, which is why the extreme ends need to be tapped.

Recently, Anheuser-Busch InBev (NYSE: BUD  ) introduced in the U.S. its Stella Artois Cidre brand of cider as a means of siphoning off wine drinkers but also trying to steal some of Boston Beer's thunder. According to GuestMetrics, hard cider sales soared 70% in the first quarter, and it was largely on the back of Angry Orchard. Notably, MillerCoors, the joint venture between SABMiller (NASDAQOTH: SBMRY  ) and Molson Coors (NYSE: TAP  ) , also acquired cider maker Crispin last year.

The growth in 2012 follows the success of hard cider sales the year before, which saw a 40% increase. Yet the industry leader remains C&C Group's (NASDAQOTH: CCGGY  ) Vermont Hard Cider, whose Woodchuck Hard Cider has a 41% share of the market, though analysts say Angry Orchard owns nearly half of the on-premises market at the end of the first quarter.

Although vintners seemingly have more to worry about as cider sips away at wine's share, that old Chinese proverb about crisis and opportunity would seem to apply here.

Those Rabobank analysts say wineries are already appropriately positioned to capitalize on the fermented beverage's growing popularity, and we're likely to see them move into the super-premium category. That bodes well for Constellation Brands, which is the largest wine producer in the world and the biggest premium wine producer in the U.S., with more than $1.7 billion in annual sales.

Euromonitor sees domestic cider sales growing 65% from 2011 to 2016, or 10.6% annually, compared with a 1% decline in beer sales. That already seems to be the pattern we're seeing with brewers such as Boston Beer, and it remains the one to beat here. But with shares hitting new highs daily and trading at more than 30 times estimated earnings and almost four times sales, it seems investors have already decided that waiting for a better buy-in price seems prudent, though an argument for sipping smaller tranches can be made, too.

Cider probably won't ever replace beer or wine, but it is well on its way to becoming a very valuable niche for brewers, and perhaps soon vintners, too.

Seasonals, ciders, and teas have bolstered the best beer brands these days, even if they've brought with them a bit of volatility. But don't let such swings scare you out of the market. The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Canadian Stocks For 2015

Canadian Stocks For 2015