Top 5 Undervalued Stocks To Own Right Now

Shares of unmanned aerial vehicle specialist-cum-battery fast-charger equipment maker AeroVironment (NASDAQ: AVAV  ) surged in early Wednesday trading, helped by kind words from a new investor that's just taken a substantial stake in the company.

This morning, activist investor Engaged Capital announced that it has taken a 5.1% equity stake in AeroVironment. Simultaneous with announcing its interest in the stock rising, Engaged explained why it thinks the stock will rise.

Specifically, Engaged argued that AeroVironment is "undervalued" because of a combination of "poor corporate governance ... financial disclosure ... capital structure, and ... capital allocation." The company hopes, however, "to work constructively with the Company's board of directors and management" to improve governance, enhance disclosure, and optimize capital allocation, all with the aim of achieving "fair valuation for AeroVironment."

Top 5 Undervalued Stocks To Own Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Sam Collins]

  Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

  S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

  Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Top 5 Undervalued Stocks To Own Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Top Stocks To Own For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Sam Collins]

  Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

  Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

  Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

• [By Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

Top 5 Undervalued Stocks To Own Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Brian Stoffel]

  This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

  Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

  Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

• [By Dave Friedman]

  Institutional investors bought 66,328,670 shares and sold 64,611,410 shares, for a net of 1,717,260 shares. This net represents 0.14% of common shares outstanding. The number of shares outstanding is 1,250,000,000. The shares recently traded at $74.84 and the company’s market capitalization is $100,986,600,000.00. About the company: Schlumberger Limited is an oil services company. The Company, through its subsidiaries, provides a wide range of services, including technology, project management and information solutions to the international petroleum industry as well as advanced acquisition and data processing surveys.

• [By Rebecca Lipman]

   Together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $91.49B. EPS growth (5-year CAGR) at 24%. According to Morgan Stanley: "Thanks to an estimated $1 billion investment per year in R&D, Schlumberger has what we consider the most advanced technology portfolio in the industry."

Weekend Edition: Here's how to run a newsletter business into the ground

 We have two major announcements to share with you...

 

The first announcement is that Dan Ferris has unveiled a new "World Dominator" buy recommendation. It appeared in this month's issue of Extreme Value, out yesterday after market close. And this new recommendation is special... It could turn out to be Dan's best ever.

 

Before we get into the details, we need to discuss why a new "World Dominator" recommendation is a big, big deal for our best readers and our staff...

 

 Longtime subscribers know that our firm recommends more than 100 different trading positions and investments per year. We cover growth stocks, value stocks, options, corporate bonds, exchange-traded funds, oil and gas royalties, real estate stocks, mining stocks, and currencies.

 

Some folks aren't interested in our options research. Navigating the options market requires a level of sophistication that some folks will never reach... and aren't interested in reaching. And that's fine. While we believe adding options knowledge to your investor "tool box" is a great thing, an investor can do fine without it. The same goes for buying individual corporate bonds, resource stocks, and many other investment/trading vehicles.

 

But one idea that is absolutely necessary to your success as an individual investor is a deep commitment to buying extremely high-quality businesses at good prices. You need to know how to spot great businesses. You need to know how to value them. You need the patience to hold them for years... to allow compounding to work its magic. A reminder: Compounding is the most powerful financial force on the planet. (Read about it here.)

 

When an investor makes this commitment to buy and own quality stocks (usually only after years of trying everything else), he reaches an important level. He graduates to a level of knowledge that most people never reach. He "joins the club." He joins wealthy, successful investors like Warren Buffett and his business partner Charlie Munger.

 

 Over the years, we've written volumes on how to identify these businesses.

 

Porter's writings on "capital efficiency" contain some of the most important ideas we've ever published. Doc Eifrig's phenomenal "118 for 118" Retirement Trader track record is built around these exceptional businesses.

5 Best Stocks To Watch Right Now

 

And Dan's work on "World Dominators" like Coca-Cola and Wal-Mart is a revelation to many people. It has guided thousands of readers to safe gains of more than 10% annually, year after year after year.

 

Dan's Extreme Value track record is ridiculously good. It's full of 40%... 50%... 70%... and 100%-plus winners. And readers earned all of these gains while sleeping soundly at night... rather than watching green and red lights flicker on a screen all day.

 

That's the power and safety of buying "World Dominators" at great prices. When people "get" this idea, they often refuse to buy any other kind of stock. Why eat bologna when you can have filet mignon?

 

 This is why we all get excited when Dan introduces a new World Dominator recommendation.

 

Dan's standards are extremely high. (This is just the second new Extreme Value recommendation this year.) He's extremely patient waiting for bargain prices. He waits for rare times when you can buy trophy beachfront estates for ghetto prices.

 

These opportunities are rare... but they do occur in the stock market. When you see them, don't hesitate. They don't last long. Take advantage of them with substantial position sizes. These positions can help build a lifetime of worry-free wealth.

 

To many of us, "new World Dominator recommendation" might as well read "incredible buying opportunity."

 

 In his newest Extreme Value issue, Dan recommended a controversial stock. Dan calls it one of the "most misunderstood" businesses in the world today.

 

Because of this misunderstanding, this World Dominator is trading at a price that Dan says offers "an enormous margin of safety." He says this is the cheapest price for a World Dominator that he's ever seen.

 

This World Dominator is also a solid dividend-payer. Its dividend isn't eye-popping right now, but Dan expects the payments to grow so much that in a few years, it will be regarded as one of the best income investments in the world.

 

Dan describes how this company has all the financial attributes of a wonderful business... consistently thick profit margins... consistently high returns on invested capital... tremendous free cash flow generation... a fortress balance sheet... and it rewards shareholders with dividends and share buybacks.

 

 Out of fairness to Dan's paid-up subscribers, we can't say much more about this stock. Only once you learn the story, you'll be amazed at how this company is poised to be one of the world's top income investments... and why it's currently one of the world's safest stocks.

 

 The second announcement regards a new milestone in our misguided, thankless efforts to help readers understand basic investment ideas.

 

We've covered why these efforts are extremely unpopular. Remember, learning is work. It can be painful. Most people just want a fish... They don't want to learn how to fish.

 

Most newsletter readers just want to hear about the next Facebook... or the next great gold mine... or the magic strategy that will make them rich overnight. They reject our efforts to teach key concepts, like proper asset allocation, business evaluation, position sizing, and stop losses.

 

As Porter has said many times, if you want to run your publishing business into the ground – if you want to receive piles of angry letters telling you to shut your mouth and just pick stocks – try to help people learn.

 

Still... despite the abuse we receive... we press on. We want to share the ideas we'd like to hear from you if our roles were reversed.

 

We also know that unless you see the value and importance of learning the basics of finance, you'll never read our work carefully or internalize its meaning. Unless you understand the basics, our newsletters won't help you. The most valuable information we can provide isn't just a stock tip. It's the understanding of how to use that tip.

 

 That's why last week, we introduced the Stansberry & Associates "Education Center."

 

In the Education Center, you'll find a large collection of our best essays and interviews about timeless investment concepts. You'll find our best essays on how to identify and value great businesses. You'll find our best pieces on "unconventional" investments, like timberland and royalty companies. You'll find interviews that cover the most important trading concepts, like sentiment analysis, short selling, and "anaconda" trading.

 

You'll also find general wealth ideas, like Steve Sjuggerud's popular "Seven Secrets From the Best Businessman I Know" essay.

 

These pieces contain knowledge you can use to achieve a lifetime of success in the markets and business.

 

In addition to our essays and interviews, you'll also find our Recommended Reading list. This is a list of our favorite books on investing, trading, history, and economics. Collectively, S&A analysts have read more than 1,000 books on these subjects. This list contains 50 or so of our favorite books. These are the best of the best. We plan to add to the list over time... and add Analyst Favorite lists.

 

 Now... an embarrassing admission. We're very good at analyzing the markets. But we've struggled with developing the perfect website. Right now, our "Education Center" section is ONLY visible if you are not logged into our website. To find it, you'll have to log out as a user. You'll find the link at the top of the log-in page, below the boxes where you enter your user ID and password. You can also simply click here.

 

We're moving into 2013 with our website technology, but we're not fully there yet. Our apologies in advance.

 

Please... take 10 minutes and check out our Education Center. It's a work in progress.

 

Regards,

 

Brian Hunt

Hot Growth Stocks To Buy Right Now

Good(ish) news came out last week: Americans now have a record net worth of more than $70 trillion, surpassing the old peak set in 2007.

Sort of, anyway. As my colleague John Maxfield pointed out, adjust�the figure for inflation, and we're still poorer than we were six years ago.

You can take this several steps further. Adjust household net worth for both inflation and population growth, and we're still a good 15% below the peak:

Source: Federal Reserve, author's calculations.

More importantly, America's wealth is highly skewed. Looking at aggregate wealth per person doesn't tell a fraction of the true story. Wal-Mart has 263,499 common shareholders, but just seven members of the Walton family own 50.9% of the company. That's an extreme example, but it's a reminder that the median (the middle level) is more revealing than the mean average.

Hot Growth Stocks To Buy Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Hot Growth Stocks To Buy Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Sam Collins]

  Houston-based Waste Management Inc. (NYSE: WM) is the largest trash hauling/disposal company in the United States. This company is a model for steady growth with earnings increasing steadily over many years.?

  S&P has a “four-star buy” on WM with a 12-month target of $42. WM pays an annual dividend of $1.36 for a yield of 3.7%.?

  Technically, the stock is in a powerful bull channel with support at $36 and resistance at $39. Buy WM as a long-term growth opportunity.

• [By Tom Konrad]

  The only household name in this year's list, Waste Management is coming back for an encore performance in 2013.  WM is the North American leader in recycling and renewable biogas among waste and environmental services companies.  The industry has been in a cyclical downturn, and WM's well-covered 4.2% dividend makes it a solid anchor for this portfolio of small and micro-cap clean energy stocks.

Best Companies To Buy Right Now: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By McWillams]

  TrueBlue, Inc. is a provider of temporary blue-collar staffing. Its EPS forecast for the current year is 0.69 and next year is 1.1. According to consensus estimates, its topline is expected to grow 8.96% current year and 10.03% next year. It is trading at a forward P/E of 15.76. Out of 10 analysts covering the company, six are positive and have buy recommendations and four have hold ratings.

Hot Growth Stocks To Buy Right Now: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:

• [By McWillams]

  Wall Street is expecting Thoratec’s (THOR: 30.70 0.00%) growth rate to accelerate to 15% next year with earnings growth of over 20%. That type of growth has Wall Street analysts bullish on the medical device stock. The stock has a consensus price target of $38 and some analysts think THOR could go to $50.

Hot Growth Stocks To Buy Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Hot Growth Stocks To Buy Right Now: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:

• [By Michael]

  OK, so Checkpoint (CKP: 13.80 0.00%) probably isn’t going to see its stock price double in 2011. However, the stock gained 35% in 2010 with earnings expected to climb 13%. Next year, Wall Street sees earnings growth accelerating to 25%. Despite the impressive growth rate, the stock trades at only 16x next year’s earnings estimates and analysts have a $25 price target for CKP.

Hot or Not: Q2 Midstream Earnings Roundup

Second-quarter midstream earnings have finally started to trickle in, as energy giants Kinder Morgan Energy Partners (NYSE: KMP  ) and TransCanada (NYSE: TRP  ) have reported, as well as a couple of smaller outfits, EQT Midstream Partners (NYSE: EQT  ) and NuStar Energy (NYSE: NS  ) . The industry is off to a great start, and the week was made even more impressive by a spectacular midstream IPO. More on that later, but first the earnings recap.

Q2 Earnings round-up
Kinder Morgan kicked off second-quarter reporting for the midstream industry 10 days ago, posting some knockout numbers. Much of the growth at Kinder Morgan was driven by its recent acquisition of Copano Energy, as well as dropdowns from its 2012 acquisition of El Paso. Four out of Kinder Morgan's five business segments posted year-over-year growth, and all of the Kinder Morgan entities increased their distributions to investors.

TransCanada reported on Friday, and investors were either disappointed or delighted, depending on how high they set their expectations. The company missed analyst estimates but increased revenue and earnings per share on a year-over-year basis. Two of its three business segments posted growth compared with the second quarter last year, including its energy segment, which nearly doubled.

EQT Midstream Partners (NYSE: EQT  ) officially has four full quarters under its public-company belt, and things are going pretty well for the tiny midstream. It reported Friday, announcing that adjusted operating income was 24% higher year over year. Distributable cash flow was $21.1 million for the quarter and led to an 8% increase sequentially in the partnership's distribution payment. EQT Midstream announced that it was increasing its yearlong guidance range for adjusted EBITDA, now $113 million to $118 million, and distributable cash flow, now $95 million to $100 million.

NuStar Energy (NYSE: NS  ) executed a 180-degree turnaround from the second quarter of 2012. The partnership posted EBITDA of $112.8 million, compared with a loss of $161.4 million a year ago. As a result, distributable cash flow increased from $31.5 million last year to $55.1 million this year. Much of the downside to the 2012 numbers came at the hands of asset impairment charges related to business restructuring, as the partnership moved to limit its exposure to margin-based revenue. The Eagle Ford shale drove organic growth at NuStar for the quarter, which is more or less an industry trend right now.

More to come
In addition to earnings season, two new midstream MLPs joined the fray this week, as Phillips 66 Partners (NYSE: PSXP  ) and Marlin Midstream Partners both held initial public offerings. Phillips 66 Partners had the market really moving on Tuesday, climbing more than 29% on its first day of trading. Marlin Midstream was more or less a dud, falling 2.5% when it made its debut on Friday.

On deck
Of course, the great majority of midstream companies have yet to report. Next week Enbridge, Enterprise Products Partners, and Magellan Midstream Partners all report on Thursday, Aug. 1.

Are you looking for a few more energy stock ideas? If so, check out The Motley Fool's "3 Stocks for $100 Oil." For free access to this special report, simply click here now.

1 Problem Apple Doesn't Want to Talk About

In the wake of Apple's (NASDAQ: AAPL  ) recent earnings report, investors seem to be convinced that all is well with the Cupertino giant after all. However, there's one problem that Tim Cook and crew are facing outside the realm of smartphones and tablets: cyber crime. Following a breach in one of the company's websites late last week, one of the world's most respected technology companies suddenly finds itself looking surprisingly vulnerable.

Watch as Motley Fool analyst Lyons George breaks down why cyber crime is currently creating $100 billion worth of problems for American businesses -- and no small amount of opportunity for investors who can connect the dots.

Top 5 Gold Stocks To Own Right Now

Apple has a history of cranking out revolutionary products -- and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.

Will Texas Roadhouse Beat These Analyst Estimates?

Texas Roadhouse (Nasdaq: TXRH  ) is expected to report Q2 earnings on July 29. 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 Texas Roadhouse's revenues will grow 10.7% and EPS will increase 3.6%.

The average estimate for revenue is $354.6 million. On the bottom line, the average EPS estimate is $0.29.

Revenue details
Last quarter, Texas Roadhouse reported revenue of $359.7 million. GAAP reported sales were 11% higher than the prior-year quarter's $324.9 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 $0.37. GAAP EPS of $0.37 for Q1 were 37% higher than the prior-year quarter's $0.27 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 34.2%, 30 basis points worse than the prior-year quarter. Operating margin was 10.6%, much about the same as the prior-year quarter. Net margin was 7.3%, 150 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.42 billion. The average EPS estimate is $1.17.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 292 members out of 332 rating the stock outperform, and 40 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Texas Roadhouse a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Roadhouse is hold, with an average price target of $19.89.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Texas Roadhouse. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Add Texas Roadhouse to My Watchlist.

Top 5 Safest Companies To Watch For 2014

The New York Times called it a "moment of reckoning." Widely followed commodities trader Dennis Gartman in a note to his clients wrote that he's "never...ever...EVER" seen anything quite like it.

The references, of course, are to March 15's collapse in the price of gold, the largest single-day percentage drop in 30 years, capping a two-day decline of 13%.

The selling was triggered in part by worries that Cyprus and possibly other European nations might have to dump their gold holdings to raise funds or satisfy bailout requirements. Also, after acting as a commodities tailwind for much of the past two years, the Fed's quantitative easing program looks to be winding down, which would relax inflationary pressure.

Suddenly, the "safest" investment no longer seemed so safe. In fact, there's a good chance that gold's 12-year streak of uninterrupted gains will come to an end this year.

Top 5 Safest Companies To Watch For 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Roger]

  Under Armour (NYSE:UA), a maker and designer of apparel, footwear and accessories that target sports enthusiasts, has more than doubled in one year. But despite the advance, many research firms still have a “strong buy” recommendation on the stock. And S&P recently revised its annual target to $93.

  Technically UA has advanced on a series of stair steps, sometimes called “base moves.”? These are very bullish formations that resemble cups. UA reversed up recently following a signal from our proprietary Collins-Bollinger Reversal (CBR) indicator. If the recent pullback to its 50-day moving average (blue line) holds, then the next move up should break the prior high with a target of $85.

  Traders could take risk positions now with a target of $85 to $90. But be careful and use stop-loss orders to protect against a violent reversal, which could drop prices back to support at $62 where this volatile stock could be bought again.

Top 5 Safest Companies To Watch For 2014: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

5 Best Stocks To Watch For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By David Sterman]

  Market Value: $173 billion
  Fall from 52-week high: 38%

  This Brazilian oil giant has lost $100 billion in market value since March 2011. That's a lot of dough. The sell-off is the result of a drop in oil prices, slightly stricter government policies regarding oil and gas royalties, and recent moves to issue more stock and debt to help fund business development. (Though the company now vows to stop issuing any more equity.)

  Indeed, this company has been sucking in cash for quite some time, generating a cumulative $40 billion in free cash flow loss in just the past two years. Pretty soon, though, losses will morph into outsized profits when the company's heavy investments to tap massive offshore oil fields finally bear fruit. In 2007, 2008 and again in 2009, Petrobras discovered three new offshore oil fields, known as Tupi, Jupiter, and yet-to-be-named site off of the state of Sao Paolo.

  It's the Tupi energy play that should pique your interest. It's the largest new find of oil since the Kashagan oil field was discovered in Kazakhstan in 2000 and instantly put Brazil's oil reserve base on par with industry giant Norway. Tally up all of its fields, and Petrobas' engineers estimate the country is sitting on more than 12 billion barrels of oil.

  The recent sell-off has put shares of Petrobras deep into bargain territory, trading at just 7.3 times projected 2011 profits and 1.2 times tangible book value.

• [By Dave Friedman]

  Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

• [By ETF Authority]  

  Current Price: $47.68 12-month target: $80

  PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.

Top 5 Safest Companies To Watch For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Will AbbVie Earnings Stay Healthy?

AbbVie (NYSE: ABBV  ) will release its quarterly report on Friday, and with its stock having jumped considerably since it started trading as a separate entity, investors are hoping for more good news from the drugmaker. Yet even if AbbVie earnings contract slightly from pro forma figures from the previous year, the company has some promising prospects in its pipeline to help it drive long-term growth in future years.

AbbVie has historically relied on a single drug, Humira, for much of its revenue, and the company's spinoff from Abbott Labs (NYSE: ABT  ) only magnified the importance of Humira to its results. Yet AbbVie knows it has to move beyond its blockbuster drug to find potential replacements down the road. Let's take an early look at what's been happening with AbbVie over the past quarter and what we're likely to see in its quarterly report.

Stats on AbbVie

Analyst EPS Estimate	$0.79
Change From Year-Ago EPS	(1.3%)
Revenue Estimate	$4.54 billion
Change From Year-Ago Revenue	1%
Earnings Beats in Past 4 Quarters	1*

Source: Yahoo! Finance. *Out of one earnings release since spinoff.

Can AbbVie earnings perk up this quarter?
Analysts have generally gotten more optimistic in recent months about AbbVie earnings, keeping their short-term estimates for the June quarter unchanged but raising their full-year 2013 consensus by a penny per share. The stock's ascent has slowed in recent months, but it still posted a 5% gain since mid-April.

AbbVie's first-quarter results underscore the importance of Humira to the company's overall results. Sales of $2.2 billion for the drug represented half of AbbVie's overall revenue, and those figures continue to accelerate higher as a new indication for ulcerative colitis sent Humira revenue up 16% worldwide and up 23.7% in the U.S. market. Yet Humira's coming expiration dates of 2016 in the U.S. and 2018 in Europe make it clear that the company has to move forward with new initiatives.

One possibility comes from the company's direct-acting antiviral combination to treat hepatitis C, which earned favorable status as a breakthrough therapy from the FDA in May. The problem, though, is that the hep-C space is extremely competitive, with both Gilead Sciences (NASDAQ: GILD  ) and Johnson & Johnson (NYSE: JNJ  ) having submitted their own hep-C treatments for FDA priority review. Although J&J's simeprevir was first to get into the FDA's review process, it shares the same drawback as AbbVie's treatment in that it only treats one genotype of the hep-C virus. That puts Gilead's sofosbuvir in the driver's seat, as it treats hep-C viruses of different genotypes. The big question for AbbVie is whether breakthrough status will give it a leg up as it seeks to combine its own stable of drugs into a single therapy to avoid revenue sharing. But the recent approval of Abbott Labs' hep-C genotyping test could boost attention for the disease and paint AbbVie in a favorable light within the industry.

Still, AbbVie faces plenty of competitive pressure. Late last month, the company got bad news when the European Medicines Agency approved two rival autoimmune-disease medications that were biosimilars for J&J's Remicade. If the trend continues, the EMA could move on to approve other biosimilars that would hurt AbbVie more directly.

In the AbbVie earnings report, watch to see how the company discusses its strategy for its hep-C treatment, as well as the rest of its pipeline. With the importance of figuring out what it will look like after Humira, AbbVie has plenty of work to do to convince investors that the company will thrive beyond the next few years.

Your financial health is just as important as your personal health. The Motley Fool's special free report "3 Stocks That Will Help You Retire Rich" names specific investment opportunities that could help you build long-term wealth and help you retire well. The Fool also outlines critical wealth-building strategies that every investor should know. Click here to keep reading.

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

Computer Task Group Increases Sales but Misses Revenue Estimate

Computer Task Group (Nasdaq: CTG  ) reported earnings on July 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 28 (Q2), Computer Task Group missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share contracted.

Gross margins dropped, operating margins increased, net margins dropped.

Revenue details
Computer Task Group tallied revenue of $107.1 million. The four analysts polled by S&P Capital IQ hoped for a top line of $111.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $0.24. The four earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.24 for Q2 were 4.0% lower than the prior-year quarter's $0.25 per share.

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

Margin details
For the quarter, gross margin was 21.1%, 40 basis points worse than the prior-year quarter. Operating margin was 6.0%, 20 basis points better than the prior-year quarter. Net margin was 3.8%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $115.0 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $455.0 million. The average EPS estimate is $1.06.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Task Group is buy, with an average price target of $24.19.

Is Computer Task Group playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.

Add Computer Task Group to My Watchlist.

Why Detroit's Bankruptcy Matters to Bonds

As nearly everyone has heard, the city of Detroit filed for bankruptcy last week, and the bankruptcy and its resolution have the potential to rattle municipal bond markets. The $18 billion filing is the largest municipal bankruptcy in history.

First, here's what won't roil markets. The $18 billion of liabilities is only a tiny fraction of the municipal bond market, and about $9 billion is retiree health and pension benefits, not bonds. Even among high-yield muni bonds, exposure to Detroit is a small. The Market Vectors High-Yield Muni ETF (NYSEMKT: HYD  ) shows one City of Detroit issue in its list of holdings at 0.05% of assets. The SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEMKT: HYMB  ) has a Detroit water and sewer bond in its list of holdings at 0.42%. The two funds dropped 1.4% and 1.2%, respectively, on Friday -- much more than the holdings of Detroit paper. Losses may be serious for pensioners and anyone heavily invested in Detroit debt, but the liabilities alone simply aren't big enough to rattle the markets alone.

Here's what could roil the markets or change municipal finance.

The Detroit filing is classing general-obligation bonds as unsecured debt, putting them lower down the food chain than many had expected. If that holds as a precedent, investors and ratings agencies would re-evaluate risk and loss-given-default models. That would raise costs for municipal borrowers, particularly those with less-than-stellar credit ratings.

Municipal borrowers with underfunded pension plans may experience more scrutiny and doubt about their ability to meet their obligations. That may already be happening: The day before Detroit's filing, Moody's lowered Chicago's credit rating three steps to "Aa3" -- still investment grade, but three notches lower than it was. Pension liabilities were cited for the downgrade.

Public-sector unions may start to demand higher levels of pension-plan funding, thereby putting more strain on government budgets. It doesn't do much good to negotiate great pension benefits if there's no money to pay them.

If for no other reason than the size of the bankruptcy, the settlement will certainly establish a pecking order among creditors. To the extent that any new precedents change current perceptions, they'll change both risk and risk pricing in the markets, for better or worse.

The federal government could get involved in some way.

No one knows how everything will shake out, and maybe nothing will happen to drastically shake up municipal bankruptcy. However, I'd bet this case will set or change some assumptions along the way. I'm sure municipal bond managers will be watching closely.

The U.S. government has piled on more than $10 trillion of new debt since 2000. Annual deficits topped $1 trillion after the financial crisis. Millions of Americans have asked: What the heck is going on? The Motley Fool's new free report, "Everything You Need to Know About the National Debt," walks you through with step-by-step explanations about how the government spends your money, where it gets tax revenue from, the future of spending, and what a $16 trillion debt means for our future. Click here to read the full report!

Severn Trent Rejects Latest Bid Approach

LONDON -- The board of Severn Trent (LSE: SVT  ) this morning announced that it has rejected another bid from the LongRiver group attempting to take it over.

In mid-May, a bid was made by a consortium made up of Borealis Infrastructure Management, the Kuwait Investment Office, and Universities Superannuation Scheme Limited -- and swiftly rejected.

Today's news revealed that LongRiver has returned with an improved offer at a price of 2,125 pence per Severn Trent ordinary share. However, the statement claimed that the revised proposal "assumed that the 45.51 pence per share final dividend already announced in respect of the year ended 31 March 2013 was not paid to shareholders. If the announced final dividend was paid to shareholders, then the Revised Proposal valued each ordinary share at 2,079.49 pence."

Representing a premium of just 16% to the share price the day before the announcement of LongRiver's interest, the board decided to reject the latest terms on the basis that it still doesn't "reflect the significant long term value of Severn Trent or to recognise its future potential," citing its attractive yield and inflation-linked business model in particular.

The shares are little changed by the news today. Of course, whether today's results make Severn Trent a buy, is something only you can decide. But if you are looking for alternative investment opportunities, this exclusive wealth report reviews five particularly attractive possibilities.

Indeed, all five opportunities offer a mix of robust prospects, illustrious histories, and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On." Just click here for the exclusive report -- it's free!

With $60B on the Line, Bank of America Stumbles

With investors on Main Street and Wall Street waiting to see how an argument over Bank of America's (NYSE: BAC  ) $8.5 billion settlement will shake out, one big revelation in court has proved to be false. So, will the courts side with investors like BlackRock (NYSE: BLK  ) , who are in favor of the settlement figure, or with lead dissenter AIG (NYSE: AIG  ) ?

In the video below, Motley Fool contributor Jessica Alling discusses the newest information and why investors should pay close attention to how the hearing plays out as it resumes in July.

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

LinkedIn Earnings: 4 Metrics to Watch

Trading at a premium that trumps even Facebook, LinkedIn (NYSE: LNKD  ) investors have very high expectations for this professional social network. Last quarter, the company certainly delivered. Its largest segment, Talent Solutions, delivered an 80% year-over-year gain for investors. But can LinkedIn continue to post such incredible growth?

In the video below, Fool contributor Daniel Sparks identifies four metrics that will help investors gauge LinkedIn's growth when it reports earnings on Aug. 1.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies like LinkedIn and Facebook. 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.

Will Nissan's Next Electric Car Finally Challenge Tesla?

The all-electric Infiniti LE concept car was shown in New York in 2012. Photo credit: Nissan

We've been hearing for a while that Nissan (NASDAQOTH: NSANY  ) is planning an all-electric luxury car to be sold under the Infiniti brand. It's expected to look a lot like the Infiniti LE concept car, shown above, which the company first unveiled last year.

Many have speculated that this could be the first direct competitor to Tesla Motors' (NASDAQ: TSLA  ) hot Model S sedan, coming from the company that had the first successful mass-market electric car with its Nissan Leaf. But more recently, Nissan has said that the program could be delayed, hinting that other (non-electric) new models might take precedence.

A few weeks ago, Fool.com contributor John Rosevear asked if the real reason for the car's delay might have to do with Nissan's worries about competing with Tesla. Now, new information on the real reasons for the car's delay has come out -- and in this video, Rosevear explains what's going on and how this is likely to play out.

Black Friday in July

Is Target's (NYSE: TGT  )  recent Bonus Black Friday akin to Christmas come early for investors? Or is it a sign of desperation from the retailer? Meanwhile, Best Buy's (NYSE: BBY  ) been on a strong run recently and is looking to continue that trend with its new store-within-a-store concept -- will this new strategy set it on a course toward profits? And finally, CEO Mike Ullman is looking to cement his place as the once and future CEO of J.C. Penney (NYSE: JCP  ) with a strong back-to-school season -- but will a slow spring and summer stop him from turning his company around? Watch this video by Motley Fool blog editor Mark Reeth and find out!

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Will ATRION Blow It Next Quarter?

There's no foolproof way to know the future for ATRION (Nasdaq: ATRI  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like ATRION do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is ATRION sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. ATRION's latest average DSO stands at 40.9 days, and the end-of-quarter figure is 46.7 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does ATRION look like it might miss its numbers in the next quarter or two?

Investors should watch the top line carefully during the next quarter or two. For the last fully reported fiscal quarter, ATRION's year-over-year revenue grew 14.5%, and its AR grew 40.4%. That's a yellow flag. End-of-quarter DSO increased 21.2% over the prior-year quarter. It was up 10.8% versus the prior quarter. That demands a good explanation. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

Looking for alternatives to ATRION? 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.

Add ATRION to My Watchlist.

Canadian Stocks For 2019

Canadian Stocks For 2019