Is Apple Going to Wow Investors in June?

Summer is always an interesting time for Apple  (NASDAQ: AAPL  ) investors. In June, Apple will host its annual Worldwide Developers Conference in San Francisco, which usually brings at least one or two exciting announcements from the King of Cupertino. So, what's likely in store this year?

Investors and the media have been long speculating on what Apple could have up its sleeve. And although rumors have been swirling in the run-up to the conference, it's now widely expected Apple will use WWDC to unveil its new updates to its iOS and OSX software. What might that entail, and how will that affect Apple investors? In the video below, Fool contributor Andrew Tonner tells investors what they need to know.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on 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.

Has Japan's Stimulus Finally Killed Deflation?

Japanese investors got a scare on Thursday when the Nikkei (NIKKEIINDICES: ^NI225  ) took an unexpected dive after last Thursday's 7% single-day loss. The index managed to pull back some of its gains on Friday, but it still shed more than 3% for the week. Despite the negativity from investors, Japan got a big boost to end the week from data that showed that Prime Minister Shinzo Abe's aggressive stimulus plan is working. If it keeps up, this week's losses could be just the right dip for investors to capitalize on a new growth spurt across the Pacific.

Abe-nomics hits the right marks
The Tokyo metropolitan area's core consumer price index, a measurement that's often taken as a reading on Japan's greater inflation as a whole, grew by 0.2% in April and 0.1% year over year -- its first growth in four years. Japan's overall core CPI fell 0.4% year over year, but the country's deflation has been declining over the past few months as the impact of Abe's easy money spreads.

Japan's a long way away from hitting Abe's 2% inflationary target, but slowing deflation and the yen's dramatic fall against the dollar over the course of 2013 are great starts. Indeed, it's already helped industrial companies move forward, as Japan's industrial production advanced 1.9% for the month. Japan will still have to deal with its world-leading public debt problem, but the third-leading economy's move toward growth is something that investors and companies alike should celebrate.

What's in it for the automakers?
It could be a big trend for automakers such as Toyota (NYSE: TM  ) that rely heavily on exports. A cheap yen will make overseas investment more expensive for Toyota and its peers, but international sales will mean more for its revenue as Japan's currency falls. The world's leading automaker has predicted that U.S. sales will grow in May, particularly as its Prius hybrid model gains traction in the market.

The Prius has underperformed significantly so far in 2013, and Toyota's still facing tough competition. Leading rival General Motors (NYSE: GM  ) is the top automaker in China's surging auto market even as Toyota surpassed the firm as the largest car company in the world. Toyota will have to keep pressing in the U.S. to keep up with its rival, as GM posted its best April sales growth in five years this year, growing the figure by 11% for the month alone.

Competing Japanese automaker Honda (NYSE: HMC  ) isn't quite on GM's and Toyota's level, but the company's going after the latter's Camry hybrid sedan for Japanese sales. Honda's now preparing to sell a new hybrid version of the Accord slated to boast the highest fuel economy in its class, offering nearly seven kilometers per liter more fuel efficiency than the Camry hybrid. The Accord's performed exceptionally in the U.S., ranking as the nation's top-selling car in April and growing sales by 26% this year alone. Honda's overall sales are still lagging Toyota, but this firm's winning in U.S. sales growth in the midsize category.

Automakers across Japan are thriving this year, and even Nissan (NASDAQOTH: NSANY  ) is joining the party. The company's sales hit an all-time record in April by growing 0.2%, although Nissan's sales have lagged in Japan and fell off by 4.8% year over year for the month. As with Honda, Nissan's sales of vehicles have surged in the U.S.

With the average car on American roads aging and consumer confidence hitting highs, Americans are set to continue the auto industry's good year throughout 2013. As the yen falls further, those U.S. sales will mean all the more to Japanese automakers and their shareholders.

Toyota has rebounded nicely from the troubles of recent years, but is the stock still a buy at current prices? The Motley Fool's automotive expert John Rosevear and Industrials Bureau Chief Isaac Pino have collaborated to create some of the most in-depth Toyota research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

10 Best Freight Stocks To Watch Right Now

In what UPS (NYSE: UPS  ) CEO Scott Davis calls "a win-win-win for our people, customers, and shareholders," the company has reached a "tentative agreement" with nearly 250,000 Teamsters Union employees on two five-year contracts. The first deal addresses union employees in UPS' packaging unit; the other agreement impacts freight employees, the sides recently announced.

According to the Teamsters announcement, both agreements will "protect [union members'] health-care benefits, provide substantial wage increases and significantly raise contributions to pension and health and welfare benefits." The deals would affect UPS' 140,000 package employees, and the nearly 110,000 Teamsters Union employees in its freight unit.

In addition to the health-care benefits and higher wages, Teamsters said the new agreement would result in 2,000 full-time jobs from the ranks of existing UPS part-time package employees.

10 Best Freight Stocks To Watch Right Now: Clearwire Corporation(CLWR)

Clearwire Corporation, through its subsidiaries, provides fourth generation wireless broadband services in the United States. The company builds and operates mobile broadband networks that offer high-speed mobile Internet and residential Internet access services. It serves retail customers through its CLEAR brand. The company markets its products and services directly to consumers, as well as through cellular retailers, consumer electronics stores, satellite television dealers, and computer sales and repair stores; and through company-operated retail outlets. As of December 31, 2011, it had approximately 1.3 million retail and 9.1 million wholesale subscribers. The company is headquartered in Bellevue, Washington. Clearwire Corporation is a subsidiary of Sprint HoldCo LLC.

10 Best Freight Stocks To Watch Right Now: Bank of Marin Bancorp(BMRC)

Bank of Marin Bancorp operates as the bank holding company for Bank of Marin that offers a range of commercial and retail banking products and services in California. It offers personal and business checking and savings accounts; time deposit alternatives comprising time certificates of deposit, individual retirement accounts, health savings accounts, and certificate of deposit account registry services; remote deposit capture, direct deposit of payroll, social security and pension checks, fraud prevention services, and image lockbox services; and valet deposit pick-up service. The company provides its deposit products and services primarily to individuals, merchants, small to medium sized businesses, not-for-profit organizations, and professionals. Its loan portfolio comprises commercial and retail lending programs that include commercial loans and lines of credit, construction financing, consumer loans, and home equity lines of credit. In addition, the company provides m erchant card services, credit cards, and business Visa programs; cash management services to business clients through a third party vendor; wealth management and trust services, such as customized investment portfolio management, financial planning, trust administration, estate settlement and custody services, and advice on charitable giving; and 401(k) plan services to small and medium businesses through a third party vendor. Further, it provides private banking services, including deposit services and loans; international banking services; and automated teller machine, Internet banking, and telephone banking services. As of April 25, 2011, Bank of Marin Bancorp operated 17 branch offices in Marin, San Francisco, Napa, and Sonoma counties. The company was founded in 1989 and is headquartered in Novato, California.

Top 5 Quality Stocks To Buy For 2014: Cache Exploration Inc (CAY.V)

Cache Exploration Inc. engages in the acquisition, exploration, and development of mineral properties, primarily rare-earth metals in Canada. It holds options to acquire 70 % interest in certain mineral claims in the Bluff Lake property located in the Quesnel trough area of British Columbia; 80 % interest in the Welsford rare earth property located in New Brunswick; and 80 % interest in two property claims, such as the Cross Hills and the Louil Hills rare earth properties located in Newfoundland. The company also has options to acquire 100% interest in the Inner Welsford property claims in southern New Brunswick; and 160 claims in the Long Lake property located in northern New Brunswick. Cache Exploration Inc. is based in Vancouver, Canada.

10 Best Freight Stocks To Watch Right Now: Macatawa Bank Corporation(MCBC)

Macatawa Bank Corporation operates as the holding company for Macatawa Bank that provides various commercial and personal banking services. It offers various deposit products, which comprise checking accounts, savings accounts, time deposits, transaction accounts, savings and time certificates, non-interest bearing and interest bearing demand deposits, and money market accounts. The company?s loan portfolio comprises commercial and industrial loans, commercial real estate loans, construction and development loans, and multi-family and other non-residential real estate loans; residential mortgage loans; and consumer loans, including automobile loans, home equity lines of credit, installment loans, home improvement loans, deposit account loans, and other loans for household and personal purposes. It also provides cash management services, safe deposit boxes, travelers checks, money orders, and trust services; ATMs, Internet banking, telephone banking, and debit cards; and b rokerage services, including discount brokerage, personal financial planning, and consultation regarding mutual funds. In addition, the company offers personal trust services, such as financial planning, investment management services, trust and estate administration, and custodial services; and retirement plan services, including provision of various qualified retirement plans, such as profit sharing, 401(k)s, and pension plans. It operated a network of 26 branches and a lending and operation service facility in Kent, Ottawa, and northern Allegan counties of Michigan. The company was founded in 1997 and is headquartered in Holland, Michigan.

10 Best Freight Stocks To Watch Right Now: USA Truck Inc. (USAK)

USA Truck, Inc. operates as a truckload carrier that provides general commodities transportation services in the continental United States, Mexico, and Canada. The company transports full dry van trailer loads of freight from origin to destination. It offers truckload freight services as a short-to medium-haul common carrier, as well as freight brokerage services, rail intermodal services, and third party logistics. The company also provides transportation scheduling, routing, and mode selection services. USA Truck, Inc. offers its services to various industries, such as industrial machinery and equipment, rubber and plastics, retail stores, paper products, durable consumer goods, metals, electronics, and chemicals. As of December 31, 2010, its trucking fleet consisted of 2,363 in service tractors and 6,709 service trailers. The company was founded in 1983 and is headquartered in Van Buren, Arkansas.

10 Best Freight Stocks To Watch Right Now: Sappi Limited(SPP)

Sappi Limited manufactures and sells various pulp, paper, chemical cellulose, and wood products worldwide. It offers coated woodfree paper used for marketing promotions and brochures, catalogues, corporate communications materials, direct mail, textbooks, and magazines; uncoated woodfree paper used for business forms, business stationery, tissue, photocopy paper, books, brochures, and magazines, as well as cut-size, preprint, and office paper; specialty woodfree paper used in bags, labels, and packaging; and release paper for use in textile, automotive, furniture, and engineering film markets. The company also provides packaging paper products, including containerboards, sack kraft, and grocery bags used for primary and secondary packaging of fast moving consumer goods, and agricultural and industrial products. In addition, it offers mechanical newsprint paper used in advertising inserts and newspapers; uncoated mechanical fiber based printing paper used for the printing o f books and advertising inserts; and coated mechanical fiber-based paper used for magazines, catalogues, and advertising material. Further, the company provides pulp products, including paper pulp used in the production of printing, writing, and packaging paper; and chemical cellulose used in the manufacture of various cellulose textile and non-woven fiber products, as well as used in various other cellulose-based applications in the food, film, cigarette, chemical, and pharmaceutical industries. Additionally, Sappi Limited offers sawn timber for construction and furniture manufacturing purposes. Its customers include printers, publishers, corporate end-users, suppliers, and converters. The company was formerly known as South African Pulp and Paper Industries Limited and changed its name to Sappi Limited in 1973. Sappi Limited was founded in 1936 and is headquartered in Johannesburg, South Africa.

10 Best Freight Stocks To Watch Right Now: Premuda(PRNI.MI)

Premuda SpA operates as a shipping company in Italy. The company transports liquid and dry goods in bulk employing its own ships and those of third parties. It also engages in crude oil floating, production, storage, and offloading business, which comprises the extraction of crude oil and gas. In addition, the company involves in the transportation of oil and derivative products. As of June 30, 2010, it had an owned fleet composed of 14 units; and a chartered fleet comprising four Handymax bulk carriers The company was founded in 1907 and is headquartered in Genova, Italy.

10 Best Freight Stocks To Watch Right Now: Flaherty & Crumrine/Claymore Preferred Securities Income Fd In (FFC)

Flaherty & Crumrine/Claymore Preferred Securities Income Fund Inc. is a closed-ended fixed income mutual fund launched and managed by Flaherty & Crumrine Incorporated. It invests in the fixed income markets of the United States. The fund employs quantitative analysis to create its portfolios. It benchmarks the performance of its portfolio against the Merrill Lynch 8% Capped DRD Preferred Stock Index, Merrill Lynch Hybrid Preferred Securities Index, and Merrill Lynch Adjustable Preferred Stock 7% Constrained Index. Flaherty & Crumrine/Claymore Preferred Securities Income Fund Inc. was formed on May 23, 2002 and is domiciled in the United States.

10 Best Freight Stocks To Watch Right Now: China Xlx Fertiliser Ltd. (B9R.SI)

China XLX Fertiliser Ltd., an investment holding company, engages in the manufacture, sale, and trade of urea, compound fertilizers, methanol, and liquid ammonia and ammonia solution in Mainland China. The company offers urea that provides nitrogen to crops and serves as raw material for agricultural fertilizers, plastic, resin, coating materials and pharmaceutical industries; and methanol that is used in the industrial production of formaldehyde, synthetic fiber, plastic, pharmaceutical, pesticides, dye, and synthetic proteins, as well as used as fuel and energy resource in power stations. Its compound fertilizers can be used as ground fertilizer or added fertilizer and are suitable for growing wheat, paddy, corn, peanuts, tobacco, fruit trees, vegetables, and cotton. China XLX Fertiliser Ltd. also exports its products to the United States, south east Asia, and south Asia. The company was founded in 1970 and is headquartered in Xinxiang, the People�s Republic of China.

10 Best Freight Stocks To Watch Right Now: Severn Trent(SVT.L)

Severn Trent Plc engages in the treatment and provision of water; and removal of waste water in the United Kingdom. It operates in two segments, Severn Trent Water and Severn Trent Services. The Severn Trent Water segment provides water and sewerage services to approximately 3.2 million households and businesses in the Midlands and mid-Wales. The Severn Trent Services segment supplies water and waste water treatment solutions to utilities, municipalities, and commercial customers primarily in the Americas, Europe, the Middle East, North Africa, and the Asia Pacific. This segment offers contract operating services to manage and maintain water and waste water plants and networks; technologies and integrated solutions for water and waste water disinfection, filtration, adsorption, and marine/offshore waste water treatment; and analytical services comprising environmental water testing services. The company was founded in 1974 and is headquartered in Coventry, the United Kingd om.

Top Airline Stocks To Watch For 2014

Consumers play a vital role in the U.S. economy. So today's news on consumer sentiment, which signaled levels of optimism not seen in nearly six years, provided more fuel for the long series of new highs for the stock market. Add to that a better-than-expected gain in the Leading Economic Index, which is designed to predict future economic activity, and it's easy to understand why the Dow Jones Industrials (DJINDICES: ^DJI  ) are up sharply, rising about 54 points, or 0.35%, as of 10:50 a.m. EDT. The broader market gained even more on a percentage basis, with the S&P 500 up 0.48% and on track for a new record of its own.

Leading the Dow higher is Boeing (NYSE: BA  ) , which is up more than 2%. As the company moves beyond the extensive problems with its 787 Dreamliner aircraft, it recently received its first order for its 737 MAX 7 model, with Southwest Airlines (NYSE: LUV  ) converting some of its orders for other 737 models to the MAX 7. Southwest has traditionally operated only 737 aircraft, saving money by avoiding the need for pilots and maintenance crews trained on many different models. But Boeing can expect plenty more orders for the MAX 7 and other updated 737 variations in the years to come.

Top Airline Stocks To Watch For 2014: United Continental Holdings Inc.(UAL)

United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Admin]  

  United Continental Holdings provides passenger and cargo air transportation services. UAL recently traded at $17.3 and lost 15.8% during the past 12 months. The stock has a market cap of $5.7 billion, P/E ratio of 12.5 and forward P/E ratio of 3.5. The stock has total debt/equity ratio of 7 and Beta of 1.04.

Top Airline Stocks To Watch For 2014: Copa Holdings SA (CPA)

Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.

Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.

The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.

Advisors' Opinion:

• [By Kathy Kristof]

  Headquarters: Panama City, Panama
  
  52-Week High: $85.25
  
  52-Week Low: $57.03
  
  Annual Sales: $1.8 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  U.S. airlines have to scratch and claw for every penny of profit they earn. Not so for Panama City-based Copa Holdings, says Bob McAdoo, airline analyst with Imperial Capital, a Los Angeles investment firm. With a hub in the Southern Hemisphere’s cross-roads, Copa has few direct rivals. That has allowed Copa to charge premium prices for its flights and register operating profit margins of 15% to 20% year after year. As economies in Brazil and the rest of Latin America continue to expand, Copa is likely to benefit because it gives travelers the most convenient way to hop around the hemisphere. 
  
  Copa’s big advantage lies in the setup of Panama City’s airport, explains McAdoo. Panama knows that it’s a crossroads, so it treats connecting passengers as though they’re hopping on a domestic flight – no trip through customs unless you leave the airport. That saves time, and potentially the need to get a visa for a country you’re just passing through, making the airport the ideal hub for business travelers in a hurry.

Best Defensive Stocks For 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Top Airline Stocks To Watch For 2014: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Don't Get Too Worked Up Over Arabian American Development's Earnings

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 Arabian American Development (NYSE: ARSD  ) , 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, Arabian American Development generated $8.0 million cash while it booked net income of $11.5 million. That means it turned 3.7% of its revenue into FCF. That sounds OK. However, FCF is less than net income. Ideally, we'd like to see the opposite.

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 Arabian American Development 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 3.4% of operating cash flow, Arabian American Development's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 8.5% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 49.4% 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 Arabian American Development? 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 Arabian American Development to My Watchlist.

This Cancer Drug Developer Could Really Use a Partner

As we've learned over the past few years, getting a drug approved by the Food and Drug Administration is just half the battle in the biotech sector. Too many biotech companies have relied on the past to dictate the present and have simply assumed that a drug approval would equal success. As we've witnessed firsthand, that's not been the case.

Yesterday I pointed out the failure of KV Pharmaceuticals, whose pre-term-birth drug Makena was priced nearly 100 times higher than the previous combination of drugs given to treat pre-term birth. Just a year later, KV Pharmaceuticals was forced to declare bankruptcy.

This is why, over a three-day period, I'm looking at biotech companies that could really use a helping hand to get their lead drug off the ground. Yesterday, I examined VIVUS, looking at how its chronic weight-management drug Qsymia has failed to take off, and why now is the time to find a marketing partner.

Today, I'd like to add a familiar name to the list and discuss why Dendreon (NASDAQ: DNDN  ) should be raising the white flag and looking for marketing assistance.

Fighting cancer from within
Dendreon's lead drug is Provenge, an immunotherapy treatment for metastatic castration-resistant prostate cancer. The treatment involves harvesting white blood cells from a prostate cancer patient, introducing them to a protein that activates them to recognize and attack this protein (i.e., the same protein expressed by prostate cancer), and then reinjecting then back into the patient to fight their cancer. In trials, Provenge improved median overall survival to 25.8 months compared to just 21.7 months for the placebo. 

With results like that, you'd think it would practically be selling itself. However, a hefty $93,000 price tag, and physician concerns that they won't be reimbursed, compounded with insurers' slowness to latch onto the treatment, has caused sales to languish badly.

Perhaps the biggest problem for Dendreon now is the explosion of competition in advanced prostate cancer treatments in both the U.S. and in Europe, where Dendreon is currently running a trial for Provenge.

A slew of competitors
We've had two treatments recently approved by the FDA a full three months ahead of their PDUFA date: Medivation (NASDAQ: MDVN  ) and Astella Pharma's Xtandi, and Bayer and Algeta's Xofigo. Xtandi improved median overall survival to 18.4 months, compared with just 13.6 months for the placebo in trials while Xofigo's median overall survival tallied 14 months, compared with 11.2 months for the control arm.

In addition to these hot new medications are Johnson & Johnson's (NYSE: JNJ  ) Zytiga and Sanofi's (NYSE: SNY  ) Jevtana. In December, the FDA expanded Zytiga's indications to treat late-stage prostate cancer before chemotherapy. In trials, it helped add better than five months to the median overall survival relative to the placebo. Sanofi's Jevtana -- which ironically also got FDA approval three months early in 2010 -- was approved in combination with prednisone and extended overall survival by nearly three months.

It isn't difficult to see why Provenge is having a hard time gaining any market share, when the competition is mounting and the cost of its immunotherapy treatment is higher than all of its peers. This is why Dendreon needs to swallow its pride and seek out a marketing partner now.

Dendreon's likely partner
While it's purely speculation on my part, I believe the most likely marketing partner would be one of Europe's premier cancer-fighting companies, Roche (NASDAQOTH: RHHBY  ) .

To begin with, Roche was unsuccessful in its attempt in to get Avastin approved to treat prostate cancer some years back. Not only did it fail to meet its primary endpoint of improving overall survival in combination with prednisone, but some of the adverse effects were also fatal. Forging a marketing partnership with Dendreon would allow Roche an opportunity to make a difference in one of the very few cancer types it doesn't currently have a foothold in.

Another intriguing aspect is that Roche currently has a PD-1 inhibitor in very early studies known as MPDL3280A that it plans to detail further at the American Society of Clinical Oncology meeting later this week. This inhibitor is an immunotherapy drug that, like Provenge, teaches the body's immune system to help it fight solid tumors better. Helping Dendreon market Provenge could be another way for Roche to beef up its immunotherapy portfolio.

Stay tuned as tomorrow I'll reveal my third and final biotech company that would benefit greatly from finding a marketing partner.

Resurgence, or dead-cat bounce?
Shares of Dendreon have surged in recent months, with the stock gaining new life from the depths of late 2012. Has the company really solved its underlying problems, or are investors setting themselves up for more disappointment? Our new premium research report on Dendreon answers these questions, and many more, while also outlining just how Dendreon intends to regain its former glory. Claim your copy by clicking here now.

Taubman Keeps Dividend Steady

Shopping-mall operator Taubman Centers  (NYSE: TCO  )  announced yesterday its second-quarter dividend of $0.50 per share, the same rate it paid last quarter after raising the payout 8%, from $0.4625 per share.

The board of directors said the quarterly dividend is payable on June 28 to the holders of record at the close of business on June 14. Taubman has paid a dividend every year since 1998, and it has steadily increased over that time period.

The board also declared quarterly dividends on two series of cumulative preferred shares, as follows:

$0.40625 per share on the 6.5% Series J, for the period April 1 through June 30 $0.46007 per share on the 6.25% Series K, for the period March 15 through June 30

The preferred dividends will be payable on June 28 to shareholders of record on June 14.

The regular dividend payment equates to a $2.00-per-share annual dividend, yielding 2.4% based on the closing price of Taubman Centers' stock on May 29.

TCO Dividend data by YCharts

Housing Data Shelters Dow From Further Losses

A day after its biggest loss in four weeks, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is back on the rise. Following some encouraging economic data and a little relief on the Fed speculation front, investors may be feeling optimistic about today's prospects in the market. As of 11 a.m. EDT, the Dow is up 75 points thanks to good news.

Home is where the heart is
Housing data is a beacon in the current dimly lit economic environment. While the remainder of the economy's recovery seems very uncertain, the housing market has become the heart of the overall recovery -- repeatedly proving that the rebound is on the right track. This morning investors were given another glimpse of the positive momentum when the National Association of Realtors reported that pending home sales rose 0.3% in April. A three-year high, this is even more encouraging since the market has also been reporting consistent increases in home prices as available inventory continues to drop. With sales increasing, homebuilders will have greater incentive to begin new construction, which had slowed in the past months.

Another piece of economic news, which may not be good for the economy, may also be pushing shares higher. Since the recent comments from Fed Chairman Ben Bernanke, investors have been watching the labor market closely. Since Bernanke specifically mentioned improvements in the labor market as signs that the Fed might make changes to its current stimulus policy, positive news from that front has been received poorly. So this week's 10,000 jump in new unemployment claims may be driving the market higher as investors feel more at ease, knowing that the improvements the Fed is looking for haven't come yet.

Inside the Dow
Banks are reacting positively to the housing data this morning. Bank of America (NYSE: BAC  ) is up 1.82% and rival JPMorgan (NYSE: JPM  ) is enjoying a 1.45% gain. While JPMorgan was in the No. 2 spot for new mortgage business last year, following behind Wells Fargo's (NYSE: WFC  ) commanding 29% lead in the third quarter, banks have been seeing decreasing activity in that market. Both Wells and JPM noted in their first-quarter earnings presentations that they expected the lag in mortgage business to continue through the year. But with this week's mortgage application data showing that new mortgages are slowly representing more of the total application activity, these banks may be seeing new business walk through their doors in the coming quarters.

American Express (NYSE: AXP  ) is also enjoying the housing news, since an economic recovery would lead to more consumer spending. Up a more modest 0.98% this morning, the personal finance company is also enjoying a boost from Nomura Securities, which reaffirmed its buy rating of AmEx and increased its price target for the firm from $73 to $89 -- a 17% upside from yesterday's close.

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.

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More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

1 Simple Investment Strategy You Simply Must Learn

I'm going to let you in on a little secret. My favorite investment strategy is writing puts. This simple strategy has just two possible outcomes, you will either buy your desired stock at a price you are willing to pay or the put will expire leaving you with at least having earned some income for trying. This win-win outcome makes it such an optimal investment strategy for buying a stock that I think it's a strategy all investors need to learn.

I realize that many investors are wary of options and for good reason. If used incorrectly, you can get burned because options involve leverage, which can be dangerous. However, if used wisely options are a great tool to make your portfolio even better.

To put this simple investment strategy into practice, I'm going to run through three examples of companies I personally am looking to buy. These three companies are all onshore oil and gas producers that are working to turn things around after the gas bubble burst. This is where the cardinal rule of writing puts comes into play, you must be willing to buy the underlying stock at the strike price. 

Topping the list of companies I'd like to buy cheaper is SandRidge Energy (NYSE: SD  ) . The oil and gas producer has come under intense pressure from activist investors who don't like the way management has led the company. Further, its share price had been pressured by the debt it took on as it shifted from natural gas to oil; it's focused its attention on becoming the dominant player in the Mississippi Lime. Those past missteps have the company trading at a compelling value – the company currently pegs its net asset value at $32 per share, while those same shares now trade at just over $5 apiece.

I like the turnaround story, but I don't want to pay a penny more than $5 a share for the company because much risk still remains. I could just place a limit order and hope it hits, but by using put options as my investment strategy I can write the September $5 put options for around $55 per contract. That leads to two potential outcomes. First, the puts could expire and I'd be left with just that income. At more than 10% in just a few months, it's quite a payout. That being said, if I am assigned shares I'd be able to buy SandRidge for $4.45 a share which is less than its 52-week low. That's a win-win proposition if you ask me – earning healthy income or buying a stock below its 52-week low would both be terrific outcomes.  

Source: SandRidge Energy

Another company I'm looking at is Chesapeake Energy (NYSE: CHK  ) . Like SandRidge it's been weighed down by debt as the bursting of the gas bubble forced an expensive transition from gas to liquids. However, things are looking up as the company is making very good progress in its turnaround plan. Further, a big cloud of uncertainty was recently removed as it finally announced a successor to its embattled former CEO, Aubrey McClendon. I think that the future looks very promising and Chesapeake's stock is one I am very interested in owning.

Again, I could just buy shares but there is the potential for a bumpy ride so I'm looking at using put options as my investment strategy to buy shares cheaper. In this case, the October $20 puts look appealing. Recently paying around $100 each, by writing these puts I would earn 5%, or potentiality buy shares for $19 each. That's a nice discount from what I'd have to fork over to purchase shares today, which is why I like writing puts. 

The final company that's on my list is natural gas producer Ultra Petroleum (NYSE: UPL  ) . Unlike Chesapeake and SandRidge, Ultra hasn't bet big on switching from natural gas to liquids. Instead, as a low-cost producer its focus has been on drilling profitable natural gas wells. The company made the decision to cut back on its growth plans and instead is investing within its cash flow. That strategy could make Ultra a big winner if gas prices improve further.

I think that writing puts would be the best way to purchase this stock because shares could be volatile if natural gas prices move lower. The September $22 puts caught my eye as these can be written for around $140 per contract. That equates to around a 6% yield, which leads to a potential buy price of $20.60. That's a pretty compelling price to purchase shares while a 6% yield over the next few months wouldn't be a bad consolation prize. 

As you can see, writing puts is a great investment strategy to learn. Other than the income, this is a strategy that takes advantage of volatility by removing some of its sting, because you really have many ways to win when you write puts. However, before you begin your journey writing puts, let me just remind you of the three key takeaways:

You must be willing to buy the stock at the strike price.  The payment received needs to be worth it. You're biggest risk could be missing the stock's upside. 

That final takeaway is one that you can't neglect. If you'd be disappointed by missing a stock's upside then a put is not worth the risk. Instead, look at writing puts as an investment strategy to either begin a new position on a stock trading higher than you want to pay or even to add to a position. For these reasons and more, writing puts is, in my opinion, the one investment strategy you simply must learn. 

Finally, of the three companies I mentioned, the one that I find most compelling right now is SandRidge Energy. The company is really focusing on growing its liquids production, its fundamentals have really improved and its puts pay very well. There are many other reasons why I think its future looks optimistic so if you'd like to learn more about the future of this emerging oil and gas junior and are looking to find out more about its strengths and weaknesses, then check out The Motley Fool's premium research report detailing SandRidge's game plan and what to expect from the company going forward. To get started, simply click here now!

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More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Why Fluidigm May Be About to Take Off

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Fluidigm (Nasdaq: FLDM  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Fluidigm doing by this quick checkup? At first glance, pretty well. Trailing-12-month revenue increased 24.0%, and inventory increased 14.4%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue expanded 32.8%, and inventory increased 14.4%. Over the sequential quarterly period, the trend looks worrisome. Revenue dropped 7.2%, and inventory grew 2.8%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at Fluidigm? I chart the details below for both quarterly and 12-month periods.

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

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 14.8%. On a sequential-quarter basis, work-in-progress inventory was also the fastest-growing segment, up 14.8%. Fluidigm may display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide great returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

Looking for alternatives to Fluidigm? 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 Fluidigm  to My Watchlist.

Why Defense Robots Aren't Going Anywhere Anytime Soon

Motley Fool analyst Blake Bos discusses the implication of reports that conclude the cost of robots may be less than the cost of humans in battle.

Blake compares the cost of maintaining a soldier in Afghanistan to that of a battle robot and points to the F-35 fighter program as an example of how expensive manned programs have become.

In the video below, Blake observes how smaller companies like iRobot  (NASDAQ: IRBT  ) and AeroVironment (NASDAQ: AVAV  ) , as well as huge defense contractors such as Lockheed Martin  (NYSE: LMT  ) and Northrop Grumman  (NYSE: NOC  ) , are positioned to benefit from this trend.

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.

Top 5 Electric Utility Stocks To Buy For 2014

Yesterday, Apple (NASDAQ: AAPL  ) shares briefly fell below the $400 mark, dropping to their lowest levels since late 2011. Yet before you fall prey to the mad media frenzy that the milestone-breach created, step back and remember that every analyst, news source, and other so-called expert that drew any huge conclusions from Apple's short-term movements was guilty of making a simple mistake: anchoring their views on the stock to a particular price.

The meaninglessness of $400
Anchoring is a common practice among investors. Whenever you draw an arbitrary line in the sand for a particular financial metric such as a stock price or index level, you're anchoring your perspective on that stock to your chosen number, even if it's based on nothing other than psychology. Anchoring reflects the behavioral need to try to take the chaos of the stock market and draw seemingly orderly conclusions, even if they're based only on the initial arbitrary anchor.

Top 5 Electric Utility Stocks To Buy For 2014: Halozyme Therapeutics Inc.(HALO)

Halozyme Therapeutics, Inc., a biopharmaceutical company, engages in the research, development, and commercialization of recombinant human enzymes that transiently modify tissue under the skin to facilitate injection of other therapies or correct diseased tissue structures for clinical benefits. The company primarily offers recombinant human hyaluronidase, an enzyme that degrades hyaluronan, which is a matrix component in the skin, and facilitates the dispersion and absorption of drugs and fluids. Its portfolio of products and product candidates are developed based principally on intellectual property covering the family of human enzymes known as hyaluronidases. The company also provides Ultrafast Insulin program, a Phase II clinical trial product for the treatment of diabetes mellitus; and Enhanze technology, a proprietary drug delivery platform for subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as sma ll molecules and fluids. It offers PEGPH20, a new molecular entity that is in Phase I trial for the systemic treatment of tumors; and HTI-501, a recombinant human proteinase, which is in Phase 1/2 clinical trial used for the treatment of edematous fibrosclerotic panniculopathy (cellulite). The company has collaborative partnerships with F. Hoffmann-La Roche, Ltd and Hoffmann-La Roche, Inc.; ViroPharma Incorporated; and Intrexon Corporation to apply Enhanze technology to the partners? biological therapeutic compounds. Halozyme Therapeutics, Inc. was founded in 1998 and is based in San Diego, California.

Top 5 Electric Utility Stocks To Buy For 2014: Ardea Biosciences Inc.(RDEA)

Ardea Biosciences, Inc., a biotechnology company, focuses on the discovery and development of small-molecule therapeutics for the treatment of gout and cancer in the United States. Its product candidates include Lesinurad (RDEA594), an inhibitor of the URAT1 kidney transporter, which is in Phase III clinical trials for the treatment of gout; BAY 86-9766 (RDEA119), a mitogen-activated ERK kinase (MEK) inhibitor that is in Phase II clinical trials for the treatment of cancer; and RDEA3170, an URAT1 kidney transporter inhibitor, which is in Phase I clinical trials for the treatment of gout. The company has a development and commercialization license agreement with Bayer Healthcare AG to develop and commercialize MEK inhibitors for various indications. Ardea Biosciences, Inc. is based in San Diego, California.

10 Best Trucking Stocks To Watch For 2014: Oncothyreon Inc .(ONTY)

Oncothyreon Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic products for the treatment of cancer. Its primary product candidate, Stimuvax is in two phase III clinical trials for the treatment of non-small cell lung cancer. The company is also developing PX-866, a small molecule that is in phase II trials for various cancer indications. In addition, it engages in the preclinical development of ONT-10, a cancer vaccine; and ONT-701, a pan-inhibitor of the B-cell lymphoma-2 family of anti-apoptotic proteins. The company operates primarily in the United States and Canada. Oncothyreon Inc. was founded in 1985 and is headquartered in Seattle, Washington.

Top 5 Electric Utility Stocks To Buy For 2014: (DYMTF)

Dynamotive Energy Systems Corporation engages in the development and commercialization of energy solutions for biomass-to-liquid fuel conversion based on its fast pyrolysis technology. The company?s fast pyrolysis technology uses biomass or biomass waste feedstock to produce BioOil as a fuel and char. BioOil is a renewable fuel, which could be replaced with natural gas, diesel, and other fossil fuels to produce power, mechanical energy, and heat in industrial boilers, fuel gas turbines, and fuel reciprocating engines. The company has a strategic alliance with Tecna S.A. of Argentina to develop commercial energy systems based on Dynamotive?s pyrolysis technology in Latin America and other markets on a non-exclusive basis. It has operations in Canada, the United States, Argentina, and the United Kingdom. The company was formerly known as Dynamotive Technologies Corporation and changed its name to Dynamotive Energy Systems Corporation in June 2001. The company was founded i n 1991 and is headquartered in Richmond, Canada.

Advisors' Opinion:

• [By Paul]

  Although Dynamotive Energy Systems stock has lost value in 2012, so did a lot of green biotech and biofuel companies, and it has held its own since September, hovering around the $0.25 mark. The bio-oil company continues to grow and signed a new agreement, for project development in China, on December 1, 2012, generating a burst of excitement and growth for DYMTF shares.

Top 5 Electric Utility Stocks To Buy For 2014: Turkcell Iletisim Hizmetleri AS(TKC)

Turkcell Iletisim Hizmetleri A.S. engages in establishing and operating a global system for mobile communications network in Turkey. It provides mobile voice, and Internet services over its mobile communications network; voice services, which include wireless telephone services on a prepaid and postpaid basis; mobile Internet and 3G services; consumer services; Telco services; TV and video services; music services; infotainment services; social community and other services; and mobile financial services The company also offers Turkcell enablers and platforms; corporate (B2B); corporate telco; authentication; location based; mobile marketing; machine-to-machine communications; and international roaming services. In addition, it provides Mobile Signature, a GSM service that enables customers to sign electronic documents and transactions with a legally-accepted digital signature using GSM SIM cards; and Mobile Billboard, which enables brands to reach their targeted customers . As of December 31, 2010, the company had approximately 23.3 million prepaid subscribers and 10.1 million postpaid subscribers. It sells its products and services through its distribution network consists of distributors, Turkcell distribution centers, corporate solution centers, non exclusive dealers, Turkcell communication centers, Turkcell stores, and consumer electronic Chains, as well as points of sale for prepaid airtime, including ATMs, POS, Web, call centers, supermarkets, and kiosks. The company was founded in 1993 and is headquartered in Istanbul, Turkey. Turkcell Iletisim Hizmetleri AS is a subsidiary of Turkcell Holding A.S.

7 Things You Need to Know About American Express

If you grew up in the 1970s and 80s like I did, one of the things you most likely remember about American Express (NYSE: AXP  ) is the phrase "Don't leave home without it." Delivered from a seemingly endless stream of television commercials and print ads, the clever corporate tag line positively embedded itself in the psyche.

If AmEx's presence in American culture isn't quite what it used to be, it's not because the company isn't still highly successful. It definitely is. And its enough of a good investment that one of the country's most-successful investors is also one of its biggest fans. Thinking about investing in AmEx yourself? Here are seven things you need to know:

1. AmEx is bigger than you think
With almost $157 billion in assets as of March 31, 2013, AmEx is the country's 19th largest bank holding company, putting it ahead of Deutsche Bank AG, the German banking giant's American operation. Size doesn't mean anything in and of itself, but used skillfully, size can help generate revenue and profit far beyond that of a smaller rival.

2. Great share-price performance
Over the past year, AmEx has returned gains of 33.08% to its shareholders: impressive by any normal standard, which these times aren't. For the same period, Bank of America (NYSE: BAC  ) shares gained 77.96%. Even Citigroup (NYSE: C  ) is up by 86.97% in the past year. But even given all that, a return of 33.08% is nothing to look down on.

3. Revenue is up
For the first quarter of 2013, total revenue for AmEx was up 4% year over year: this at a time when revenue for some big banks is flat or declining. For the same period, total revenue at JPMorgan Chase and Wells Fargo (NYSE: WFC  ) was down 3.87% and 1.41%, respectively. Profit is all well and good, but if it isn't born out of ongoing revenue growth, then it's not sustainable.

4. Killer return-on-equity
Return-on-equity, or ROE, is a measure of management effectiveness, and gives you some notion of how much profit a company generates with shareholder money. AmEx's ROE is a staggering 22.99% trailing 12 months. Even the extraordinarily well-run JPMorgan has an ROE of only 11.55%.

5. Amex pays a dividend
Wells Fargo pays a quarterly dividend of 3%, and JPMorgan pays 2.8%. At 1.2%, AmEx's dividend yield isn't much, but it's something -- icing on the cake for what I consider to be more of a great growth stock.

6. Cardmember spending grew
As you might expect, cardmember spending is AmEx's bread and butter, and the good news is that it was up by 6% for the first quarter of 2013. It rose even higher if you take foreign currency translations into account: 7%. 

7. Buffett really likes Amex
Warren Buffett likes his bank-holding companies. Wells Fargo is Berkshire Hathaway's (NYSE: BRK-B  ) largest holding, and only three spots behind Wells is AmEx. With more than $151 million shares worth more than $11 billion, Buffett's Berkshire holds a 13.8% stake in the charge-card giant.  

Foolish bottom line
You should never invest in a company just because someone else does, even if that someone is Warren Buffett. But when the age's arguably greatest investor makes a company one of his top investments, it's a fact worth serious consideration. Add to that the other six points we've discussed today, and you definitely have an investment worth serious consideration.

Looking for in-depth analysis on Berkshire Hathaway? Then check out this Motley Fool premium report, written by our own Berkshire expert Joe Magyer. Joe will give you key reasons to buy as well as important risks to watch out for at Buffett's high-performance yet highly complex conglomerate. For immediate access, simply click here now. 

Whatever You Do, Avoid These 3 Stocks

As companies emerge from a rough stretch, their shares can quickly move back into favor with investors.

Trouble is, the rebounding share price can often overshoot the mark and move into overvalued territory, especially if there has been a massive short squeeze in play. Here are three fast-rising stocks that have rapidly moved from being undervalued to overvalued.

Best Buy (NYSE: BBY)

This beleaguered electronics retailer has seen its stock more than double this year as an extended period of quarterly profit shortfalls appeared to come to an end. Best Buy had been steadily losing traction as its prices were higher than online rivals such as Amazon (Nasdaq: AMZN) and Wal-Mart (NYSE: WMT). In response, Best Buy has been slashing prices, which has reduced gross margins but helped stabilize foot traffic. To offset the lower gross profits, management has been radically paring overhead, including sales staff. Note that Best Buy's business model once depended on a knowledgeable and friendly sales staff. Fewer salespeople means a lot more standing around for consumers, waiting to get their questions answered (which has been my experience on recent occasions). At some point in such an environment, shopping online becomes the easier option. More to the point, this stock’s rebound has eliminated any sense of this stock being a value play. Shares now trade for more than 10 times consensus fiscal 2014 earnings per share (EPS) of around $2.40. What’s an appropriate earnings multiple for a retailer with limited growth prospects and ever-deepening competitive pricing pressures? “We believe that 8X is a reasonable multiple given our view of the company’s risk profile, EPS growth trajectory, and recent low-quality earnings,” said analysts at Citigroup, adding that they expect shares will fall to their $19 price target. Analysts at Merrill Lynch said, “While cost reductions so far have been impressive and we believe there will be more to come, we think these initiatives will be insufficient to return earnings and cash flow to attractive levels in the next few years.” That view underpins an $11.50 price target, which is less than half of the current stock price.

 

Chipotle Mexican Grill (NYSE: CMG)

Holy guacamole! This stock has risen more than $100 in just six months, to a recent $370. The credit goes to a string of impressive quarterly results as last year's slowdown in profit growth appears to have abated. Chipotle has topped profit forecasts by exactly 16% for four straight quarters. Investors may see a smooth ride to higher profits, as EPS is expected to rise roughly 20% in 2013, 2014 and again in 2015, when this company will be earning $15 a share, according to analysts at Citigroup. Yet that view may prove to be too optimistic. Goldman Sachs analysts think sales growth will start to decelerate, partially due to the fact that same-store sales, which used to rise at a high-single-digit year-over-year pace, are now growing half as fast. And they think that Chipotle’s heady expansion is leading to oversaturation in some markets, noting that recently opened stores aren’t generating the initial traffic results that store openings used to generate. And Goldman’s analysts think that as Chipotle enters a more mature growth phase, the stock price will be impacted. “We do not believe in-line growth is likely to support a superior multiple, as was the case in CMG’s hyper-growth heyday. As such, multiple contraction may serve to offset the compounding EPS base, limiting shareholder returns over the next few years.” They see shares falling $50 from current levels to a $320 target price.

 

H&R Block (NYSE: HRB)

Shares of this tax preparation service have risen more than 50% this year on hopes that the imminent major changes in health care stemming from the Affordable Care Act will make personal income taxes so complex that consumers will flock to H&R Block for help. But will that really be the case? After all, tax prep volumes for the season just ended were down 0.9% compared with a year earlier for H&R Block, mirroring pressures seen by Intuit (Nasdaq: INTU). Additionally, in the past few years, this industry has evolved into a slowly growing, mature market. What impact will the Affordable Care Act have? Well, there is sure to be some confusion around its implementation. Many consumers are likely to need help figuring out which health care subsidy they should receive, or what health care taxes they might owe. In response, the U.S. government is planning a major PR blitz later this year to inform and educate consumers, including explicit tax information. So it’s probably too soon to expect any bump for H&R Block and Intuit.

Risks to Consider: As an upside risk, these stocks each has a short interest that is equivalent to at least two days' trading volume, and rising stock market could squeeze them higher.

Action to Take --> These bull market stocks appear to have been lifted by the sense that troubles in 2012 have been replaced by blue skies ahead in 2013 and beyond. Yet such a sunny view should invite caution, as the fundamentals underpinning each of these stocks’ gains appear to be on shaky ground.

P.S. -- StreetAuthority's Amy Calistri has one objective for readers of Stock of the Month: to provide one quality stock pick each month, with in-depth analysis in plain English that investors can understand. In fact, she just released a special presentation, "How to Beat the Stock Market... In Just 12 Minutes per Month," that tells you more about her strategy. Go here to learn more.

Can Samsung Squeeze Apple Where It Hurts?

3 Reasons to Buy Melco Crown

Melco Crown (NASDAQ: MPEL  ) has been the big winner of expansion on the Cotai Strip and has two more resorts in the works. A project in the Philippines will open next year, and in 2016 Studio City on Macau will add to Melco's presence in the largest gaming region in the world. Kristen Coia sat down with gaming analyst Travis Hoium to get more insight into the exciting opportunities for Melco Crown. 

Melco Crown is often a forgotten company in gaming, but it has tremendous upside from Studio City and its partnership in the Philippines, which could more than double the company's revenue base. This being a more speculative investment, is it worth the risk for smaller investors? The Motley Fool answers this question and more in our most in-depth Melco Crown research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

Top Asian Stocks To Invest In 2014

There's an old stock market adage: "Sell in May and go away, don't come back till Labor Day." Personally, I don't believe in timing the market, especially on the merits of an anonymous maxim, but today's sell-off certainly didn't do much to disprove the saying. That said, there was some actual news today -- global manufacturing is starting to cool down, U.S. companies are hiring more slowly than anticipated -- that substantiated the drop. By day's end, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) had lost 138 points, or 0.9%, to close at 14,700http://www.bloomberg.com/news/2013-05-01/asian-stocks-fall-as-yen-gains-amid-growth-concerns-oil-drops.html.

Walt Disney (NYSE: DIS  ) was one of just a handful of blue chips to advance today, adding 0.6%. Although the House of Mouse doesn't report quarterly figures until next Tuesday, the stock was buoyed by good results from several other rival entertainment and broadcasting mainstays. Both CBS and Viacom surprised Wall Street today, and with big media beating expectations, investors grew optimistic for Disney's numbers next week.

Top Asian Stocks To Invest In 2014: Genesis Land Devel Com Npv (GDC.TO)

Genesis Land Development Corp., a real estate development company, together with its subsidiaries, engages in the acquisition, development, subdivision, construction, sale, and leasing of land, residential lots and homes, and commercial properties in Alberta and British Columbia. It operates in four divisions: Land Development, Single-Family Home Building, Multi-Family Home Building, and Commercial Development. The Land Development division principally develops residential lots in the cities of Calgary, Airdrie, Edmonton, and Cochrane, Alberta; and in Prince George, Kamloops, and Radium, British Columbia. The Single-Family Home Building division builds and sells single-family homes. The Multi-Family Home Building division builds town homes and apartment complexes. The Commercial division engages in selling, leasing, and developing commercial, industrial, and office properties. The company was formerly known as Genesis Capital Corp. and changed its name to Genesis Land Deve lopment Corp. in October 1998. Genesis Land Development Corp. was founded in 1997 and is headquartered in Calgary, Canada.

Top Asian Stocks To Invest In 2014: Brazilian Real(BK)

The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. It also provides investment management, wealth and estate planning, and private banking solutions to high-net-worth individuals and families, charitable gift programs, endowments and foundations, and related entities, as well as offers mutual funds, separate accounts, and annuities. In addition, the company provides global custody and fund, securities lending, investment manager outsourcing, performance and risk analytics, alternative investment, securities clearance, collateral management, corporate trust, broker-dealer, and employee investment plan services, as well as clearing services and global payment/working capital solutions to institutional clients. Further, it offers American and global depositary re ceipt programs, cash management solutions, payment services, liquidity services, foreign exchange, global clearing and execution, managed account services, and global prime brokerage solutions to corporations, public funds, government agencies, foundations, and endowments; global financial institutions, including banks, broker-dealers, asset managers, insurance companies and central banks; and financial intermediaries, independent registered investment advisors, and hedge fund managers. Additionally, the company provides credit-related services, and global markets and institutional banking services; engages in business exits, and corporate treasury activities; and leases financing portfolios. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Elissa]

  The Bank of New York Mellon was formed by a merger in 2007 and serves many institutions, corporations and wealthy individuals across the country. With assets equivalent to $325 billion, the company focuses on asset and wealth management for its customers.

Top Gold Stocks To Invest In Right Now: Medley Capital Corporation (MCC)

Medley Capital Corporation is a business development company. The fund seeks to invest in privately negotiated debt and equity securities of small and middle market companies. It targets private debt transactions ranging in size from $10 million to $50 million to borrowers principally located in North America. It structures its investments as first lien senior secured loans, second lien senior secured loans, senior secured notes, senior subordinated notes, unitranche loans, and seeks warrants or other equity participation. The fund may take a board seat on its investee companies and exits its investments between three years and seven years.

Top Asian Stocks To Invest In 2014: Olam International Limited (O32.SI)

Olam International Limited engages in sourcing, processing, packaging, merchandising, and exporting agricultural products. The company operates in five segments: Edible Nuts, Spices and Beans; Confectionery and Beverage Ingredients; Industrial Raw Materials; Food Staples and Packaged Foods; and Commodity Financial Services. The Edible Nuts, Spices and Beans segment offers cashews, peanuts, almonds, hazelnuts, spices and vegetable ingredients, sesame, dehydrated vegetables, tomatoes, and specialty vegetables, as well as beans comprising pulses, lentils, and peas. The Confectionery and Beverage Ingredients segment provides cocoa, coffee, and shea nuts. The Industrial Raw Materials segment offers cotton, wool, wood products, and rubber products, as well as agri inputs, such as fertilizers. This segment is also involved in the development of a special economic zone project. The Food Staples and Packaged Foods segment provides rice, sugar and natural sweeteners, palm and dairy products, and packaged foods, as well as grains, including wheat, barley, and corn. The Commodity Financial Services segment offers market making and volatility trading, risk management solutions, and commodity funds management services. The company serves various customers worldwide. Olam International Limited was founded in 1989 and is headquartered in Singapore.

Top Asian Stocks To Invest In 2014: The Medicines Company(MDCO)

The Medicines Company, a pharmaceutical company, provides various medicines to hospitals for advancing the treatment of critical care patients worldwide. The company markets Angiomax, an intravenous direct thrombin inhibitor for use as an anticoagulant in combination with aspirin in patients with unstable angina undergoing percutaneous transluminal coronary angioplasty and for use in patients undergoing percutaneous coronary intervention; and Cleviprex, an intravenous small molecule calcium channel blocker for the reduction of blood pressure, as well as to treat neurocritical care and cardiac surgery patients. Its products under development include Cangrelor that is in Phase III clinical trial acts as an intravenous small molecule antiplatelet agent to prevent platelet activation and aggregation; and Oritavancin, which is in Phase III clinical trial acts as an investigational intravenous antibiotic for the treatment of serious gram-positive bacterial infections, including acute bacterial skin and skin structure infections. The company?s products under development also comprise MDCO-157, a pre-registration stage product for platelet inhibition in patients suffering from acute coronary syndrome (ACS), and patients experiencing myocardial infarction, stroke, or peripheral arterial disease; MDCO-2010, a small molecule serine protease inhibitor that is in Phase II clinical trial used for the reduction of blood loss during surgery; and MDCO-216, which is in Phase I clinical trial used for the reversal of atherosclerotic plaque development and the reduction of the risk of coronary events in patients with ACS. Its products also consist of Argatroban, a direct thrombin inhibitor used as anticoagulant for prophylaxis or for the treatment of thrombosis; and acute care generic products. The Medicines Company was founded in 1996 and is based in Parsippany, New Jersey.

Top Asian Stocks To Invest In 2014: First Advantage Bancorp(FABK)

First Advantage Bancorp operates as the holding company for First Federal Savings Bank that provides various financial services to individuals and businesses in Tennessee. The company offers various deposit products comprising non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts, including NOW and money market accounts; regular savings accounts; and certificates of deposit. Its loan portfolio include real estate mortgage loans, including one-to-four family residential loans and nonresidential real estate loans; construction loans for one-to-four family homes, commercial, multi-family, and other nonresidential purposes; land loans for developing vacant land; consumer loans consisting primarily of home equity loans; and commercial business loans secured by equipment, inventory, or accounts receivable to small businesses. As of June 10, 2010, the company operated five full-service offices in Montgomery County. First Advantage Banco rp was founded in 1953 and is headquartered in Clarksville, Tennessee.

1 Energy Policy Everyone Can Support

Whenever America debates energy policies, there's normally some heated rhetoric about one industry getting treated better than the other. Several fossil-fuel advocates are crying foul at the Obama administration, because they claim it's using the oil and gas sector as a piggy bank to finance alternative energy. Conversely, those cheering for alternative energy are pleading that these energy sources should receive the same benefits that other energy sources received when they got started years ago. 

Any way you shake it, the perception is that helping one industry irrevocably hurts the other, but that doesn't necessarily have to be the case. There are options to give alternative energy more equal treatment without taking away from traditional fossil fuels. Let's look at one idea: the Master Limited Partnership Parity Act.

MLPs for everybody
For investors who have followed the energy sector lately, master limited partnerships have more than likely come up in conversation. This MLP structure provides unique tax advantages for qualifying companies and provides investors with high-yielding investments ideally suited for those seeking income investments. The key phrase there is "qualifying companies," and that's where the Master Limited Partnership Parity Act comes into play. 

Under current rules, the only companies that are eligible for MLP status are those where more than 90% of revenue comes from the following sources:

Interest, dividends, and capital gains. Rental income and capital gains from real estate. Income from commodity investments. Income from qualifying natural resource activities. Any gains from assets used to generate these types of income.

Under these regulations, natural resources that qualify are depletable resources such as oil, gas, coal, timber, minerals, and biofuels such as ethanol. The MLP Parity Act, though, would expand the definition of qualifying industries to include wind, biomass, geothermal, solar, municipal solid waste, hydropower, marine and hydrokinetic, fuel cells and combined heat and power projects, certain renewable transportation fuels, carbon capture and storage, waste heat to power, renewable chemicals, and energy-efficient building projects..

If companies that participate in these kinds of activities were able to gain MLP status, they would be able to create an investment vehicle that could be more attractive to investors because of the higher yield. This could spur greater private investment in these types of companies. At the same time, by granting MLP status to companies that operate in these sectors, it doesn't create an additional financial burden on the oil and gas industries that may occur from additional taxes to support alternative energy investments. 

Despite the bill's bipartisan support and backing from giants Duke Energy (NYSE: DUK  ) , DuPont (NYSE: DD  ) , and NRG Energy (NYSE: NRG  ) , the bill hasn't been able to get past committee despite several attempts. The most recent iteration of this bill is currently in deliberation in both the Senate Finance Committee and the House Ways and Means Committee. Govtrack.us, a website dedicated to tracking congressional activity and voting records, currently gives the bill a 1% chance of making it to the House or Senate floor for a vote. 

The catch
Yes, MLP status for alternative energy companies would give them a needed boost in the equity markets, but not all companies are fit to be a good MLP investment. For a company to be a good investment as an MLP, it needs to generate a consistent cash flow that can cover its operations and still return a consistent distribution to its shareholders. Some of the most successful MLPs have been in the midstream sector of the oil and gas industry. Companies such as Enterprise Products Partners (NYSE: EPD  ) have thrived under this model because revenue is relatively predictable and it can continuously raise its distributions without seriously jeopardizing its operations.

Much of the alternative energy space is still young and growing, fast. Right now, there are only a handful of companies that could benefit from MLP status. As the industry matures and outcomes are more predictable, though, more and more companies will be in a position to take advantage of this unique business structure.

What a Fool believes
The energy industry has for hundreds of years been closely tied to politics, and political beliefs have always in some way or another influenced our thoughts on the energy sector. Regardless of whether you're bullish or bearish on the prospects of alternative energy fuels, a move like this would provide a more attractive investment vehicle for these companies and could potentially result in greater private investment, and in turn it might reduce the need for public funding for the sector. 

Just as investing in only one company isn't the best idea, energy requires more than just one solution. Based on financial performances from this past quarter, fossil fuels and alternative energy can coexist and strive. Demand for energy will keep all of these different sectors busy for many years, and investors should plan their portfolios accordingly. 

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand new premium research report on the company.

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