Top 5 Clean Energy Stocks To Buy For 2014

The S&P 500 (SNPINDEX: ^GSPC  ) is the benchmark by which thousands of money managers overseeing trillions of dollars in assets are judged. For passive index investors who believe that active management doesn't add value over the long run, choosing index-tracking exchange-traded funds tied to the S&P 500 helps them meet their goal of matching the market's overall return.

But many different ETFs track the S&P 500. Which one makes the most sense for you? Let's look at some of the more popular S&P 500-tracking ETFs to pinpoint their differences.

A look at three top S&P ETFs
The biggest S&P-tracking ETF is the SPDR S&P 500 (NYSEMKT: SPY  ) , affectionately known as the Spiders. It was the first exchange-traded fund product to gain widespread use, and it's now a giant in the industry, with $140 billion under management. Its expense ratio is 0.09%, and with average volume of about 133 million shares daily, the Spiders trade $22 billion worth of shares each day -- meaning it takes less than seven days for the entire outstanding share-count to turn over.

Top 5 Clean Energy Stocks To Buy For 2014: Royal And Sun Alliance(RSA.L)

RSA Insurance Group plc, through its subsidiaries, provides personal and commercial general insurance products and services worldwide. Its personal insurance products include motor, household, travel, and pet insurance; and commercial products comprise motor, marine, engineering, liability, property, and professional financial insurance. It also provides insurance coverage for a range of renewable energy technologies, including wind energy, solar energy, small hydro, and bio energy. In addition, the company offers claim handling and insurance brokerage services. It distributes its products through brokers and affinity partnerships. The company was formerly known as Royal & Sun Alliance Insurance Group plc and changed its name to RSA Insurance Group plc in 2008. RSA Insurance Group plc was founded in 1710 and is based in London, the United Kingdom.

Top 5 Clean Energy Stocks To Buy For 2014: CompuCredit Holdings Corporation(CCRT)

CompuCredit Holdings Corporation provides credit and related financial services and products to underserved consumer credit market in the United States. It operates in five segments: Credit Cards, Investments in Previously Charged-Off Receivables; Retail Micro-Loans; Auto Finance; and Internet Micro-Loans. The Credit Cards segment involves in credit card investment and servicing activities with respect to receivables underlying accounts originated and portfolios purchased by the company. The Investments in Previously Charged-Off Receivables segment acquires and sells previously charged-off credit card receivables. The Retail Micro-Loans segment, through a network of storefront locations, provides small-balance, short-term cash advance loans that are due on the customer?s next payday; state installment loans, title loans, and other credit products; money transfer, bill payment, and related financial services; and tax preparation services, money order, and wire transfer ser vices. Its loans and products are marketed through retail branch locations in Alabama, Colorado, Kentucky, Mississippi, Ohio, Oklahoma, South Carolina, Tennessee, and Wisconsin. The Auto Finance segment purchases auto loans and services the loans to pre-qualified auto dealers. The Internet Micro-Loans segment involves in Internet micro-loan operations. The company also offers other ancillary products, such as memberships, insurance products, subscription services, and debt waiver. CompuCredit Holdings Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.

Top Low Price Stocks To Own For 2014: Lam Research Corporation(LRCX)

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipments used in the fabrication of integrated circuits. The company offers etch products that remove portions of various films from the wafer in the creation of semiconductor devices. Its etch products include dielectric etch, conductor etch, three-dimensional integrated circuit etch, MEMS devices, CMOS image sensors, and power devices for etching process. Lam Research Corporation also provides wafer cleaning steps that comprise post-etch and post-strip cleans, and pre-diffusion and pre-deposition cleans; and single-wafer wet clean and plasma-based bevel clean systems. The company offers its products to semiconductor manufacturers. It operates in the United States, Europe, Taiwan, Korea, Japan, and the Asia Pacific. Lam Research Corporation was founded in 1980 and is headquartered in Fremont, California.

Top 5 Clean Energy Stocks To Buy For 2014: Core-Mark Holding Company Inc.(CORE)

Core-Mark Holding Company, Inc., together with its subsidiaries, markets fresh and broad-line supply solutions to the convenience retail industry in the United States and Canada. It provides various products, including cigarettes, other tobacco products, candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise, and health and beauty care products; marketing programs; and technology solutions. The company distributes its products to traditional convenience stores, grocery stores, drug stores, liquor stores, and other specialty and small format stores that carry convenience products through a network of 26 distribution centers. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.

Top 5 Clean Energy Stocks To Buy For 2014: Blue Dolphin Energy Company (BDCO)

Blue Dolphin Energy Company operates as an independent refiner and marketer of petroleum products. The company separates crude oil and condensate into off-road diesel and jet fuel for sale into nearby markets, as well as naphtha and atmospheric gas oil for sale to nearby refineries for further processing. It also provides pipeline transportation services comprising gathering and transporting oil and natural gas for producers/shippers operating offshore in the U.S. Gulf of Mexico. In addition, the company engages in the oil and gas exploration and production activities. It holds leasehold interests in the North Sumatra Basin-Langsa field located offshore Indonesia; and High Island Block 115 located to the southeast of Bolivar Peninsula, Galveston Area Block 321 located to the southeast of Galveston, and High Island Block 37 located to the south of Sabine Pass in the U.S. Gulf of Mexico. The company is headquartered in Houston, Texas. Blue Dolphin Energy Company operates as a subsidiary of Lazarus Energy Holdings, LLC.

3 Reasons to Sell Berkshire Hathaway Stock

I'm going to attempt something a little odd today, Fools. Even though Berkshire Hathaway (NYSE: BRK-B  ) stock makes up 3.7% of my real-life holdings, I'm going to be giving you three reasons to consider selling the stock today.

Why am I doing this?

Recently, Nobel Prize winner Daniel Kahneman visited Fool headquarters in Virginia. While visiting, he talked about how a number of different biases can lead us to believe we can predict the future with relative certainty. In reality, he argued, we are just deluding ourselves.

It got me to thinking about how I don't write enough about the risks of owning the stocks I own. So, though I don't plan on selling my Berkshire Hathaway stock anytime soon, I think it's healthy for me to practice and model this behavior.

1. Buffett and Munger aren't getting any younger

Source: ChinaFotoPress/Getty Images. 

Berkshire Hathaway's amazing appreciation over the last half-century has been accomplished through the shrewd decision-making of CEO and Chairman Warren Buffett, and later, Vice Chairman Charles Munger. Buffett is 82 years old, and Munger is 89.

Judging by their performance and generally upbeat mood at this year's stockholder meeting, neither man is showing signs of slowing down. But that doesn't mean the sad day when they leave the company won't soon come.

The company's 2013 annual report states that: "Berkshire's Board of Directors has identified three current Berkshire subsidiary managers who, in their judgment, are capable of succeeding Mr. Buffett." One contender that is generally considered the front runner is insurance guru Ajit Jain. Buffett, in fact, has so much faith in Jain that he once quipped: "If Charlie, I and Ajit are ever in a sinking boat -- and you can only save one of us -- swim to Ajit." 

While its comforting to know Warren has that level of confidence, investors should remember that Buffett and Munger have been the primary drivers of Berkshire's success over the decades.

2. It's too complicated
I like to keep my investing simple. Normally, I refuse to invest in a company if I can't explain to a kindergartener how it makes money. For Berkshire, I've broken that rule, and I'm not sure that's such a great thing.

For starters, the insurance underwriting industry can be extremely complex. It is here that Ajit has excelled, but the fact that it takes such a brilliant mind to adequately handicap risk shows that very few people can actually wrap their heads around the business.

Furthermore, this list of Berkshire subsidiaries -- taken from the company's website -- demonstrates the dizzying reach of the company -- from railroads like Burlington Northern Santa Fe, to See's Candy, and just about everything in between.

Source: Berkshire Hathaway.

Because of this, for many people, an investment in Berkshire Hathaway is more about investing alongside Buffett than it is investing in the underlying businesses (which brings us right back to my first point).

3. Berkshire Hathaway stock: low growth and no dividend
The final ding to an investment in Berkshire Hathaway is the fact that the company's prospects for significant growth are hampered by its sheer size. Currently, Berkshire has a market cap of $190 billion, with $162 billion in revenue just last year, and $44 billion in cash and cash equivalents sitting in the bank. When you accomplish that kind of size, it is very difficult to invest in anything that could possibly yield market-beating returns.

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Usually, when companies get to this size, they reward shareholders in the form of dividends. Not so for Berkshire Hathaway, however. The company has only paid one dividend in its history, and that was a $0.10 payout all the way back in 1967!

What's a Fool to do?
These are all legitimate reasons to be concerned about owning Berkshire Hathaway stock. I have certainly committed the error of investing because of Buffett, rather than because I can understand all of the moving parts that are Berkshire. Although I'll keep this in mind when reconsidering my holdings at year's end, I am comforted by the fact that Jain is on board. And the slim chance for appreciation isn't a big concern, as I've included Berkshire in my portfolio for its stability, rather than growth.

Solid companies selling at depressed prices have consistently helped generations of the world's most successful investors preserve capital, minimize risk, and achieve long-term, market-trampling returns. For one such company, read our free report: "The One REMARKABLE Stock to Own Now." Just click here to get started.

Treasuries Rise a Third Day as Investors Weigh Stimulus Outlook

Treasuries advanced for a third day as investors weighed whether the world's largest economy is expanding fast enough to prompt the Federal Reserve to taper monetary stimulus.

Ten-year notes headed for a weekly gain before Fed Governor Jeremy Stein speaks today on monetary policy in New York. Treasuries rallied yesterday when New York Fed Bank President William C. Dudley said policy makers may prolong asset purchases. Economists say U.S. reports today will show consumer confidence fell from a six-year high this month and business activity slowed.

The benchmark 10-year yield fell one basis point, or 0.01 percentage point, to 2.46 percent at 8:18 a.m. London time, according to Bloomberg Bond Trader prices. The 1.75 percent note due in May 2023 rose 1/8, or $1.25 per $1,000 face value, to 93 26/32. The yield has declined seven basis points this week.

5 Best Stocks To Own For 2014

The Thomson Reuters/University of Michigan index of consumer sentiment was at 83 in June, compared with a prior reading of 82.7 for the month and 84.5 in May, according to a Bloomberg News survey. The MNI Chicago Report's business barometer fell to 55 from 58.7 in May, a separate survey showed. A reading above 50 signals expansion.

5 Chinese Stocks That Soared Last Week

Chinese growth stocks stormed higher last week.

NQ Mobile (NYSE: NQ  ) continues its amazing run, soaring 26% on the week after climbing 17% a week earlier.

The provider of mobile Internet services took off after announcing encouraging preliminary results for its second quarter. NQ Mobile was forecasting no more than $38.8 million in net revenue two months ago for the period, but now it sees revenue surpassing $40 million for the quarter that ended in June.

NQ Mobile has managed to close higher for 11 consecutive trading days since releasing its upbeat report. You don't see that kind of streak too often.

Are investors finally ready to buy back into China? Are the high growth rates and often reasonable valuations enough to outweigh the geopolitical risks of buying into Chinese growth stocks?

Let's take a closer look at some of the other winners from last week.

Company

July 26

Weekly Gain

Nam Tai Electronics (NYSE: NTE  )	$8.10	23%
Kandi Technologies (NASDAQ: KNDI  )	$5.26	16%
Baidu (NASDAQ: BIDU  )	$127.56	15%
Dangdang (NYSE: DANG  )	$8.86	13%

Source: Barron's.

Nam Tai Electronics was one of this week's biggest winners, soaring 23% on the week. The contract manufacturer made the cut as one of my favorite stocks trading under $10 two weeks ago. Its push to make liquid display modules for smartphones last year has been a questionable call given the competitive climate, but last week's surprisingly robust iPhone shipments are getting investors excited about smartphone-related companies again.

Despite the run, Nam Tai's quarterly dividend of $0.15 a share leaves the stock currently yielding a healthy 7.4%.

Kandi Technologies made most of its move on Friday after announcing that the first 100 Kandi-Geely co-developed electric vehicles were delivered for the public car sharing system in Hangzhou City. A vertical parking and charging facility was recently completed to assist with the system.

Kandi shares soared last month after it announced its plans to develop electric passenger cars alongside Geely. The stock went on to more than double within a week at the peak, but it had given up most of those gains in recent weeks.

Baidu moved higher after delivering better-than-expected quarterly results. Revenue climbed 39% during the quarter, and the leading search engine's guidance calls for top-line growth to increase by at least 40% in the current quarter. Analysts certainly weren't banking on Baidu's revenue growth rate to accelerate.

Baidu shares had also moved 15% higher a week earlier after its proposed $1.9 billion acquisition of China's leading mobile apps marketplace operator.

Finally, we have Dangdang on the move. The Chinese online retailer continues to head higher as we approach next month's quarterly report. Dangdang has seen its shares more than double since bottoming out three months ago.

Dangdang is still at least a couple of years away from annual profitability, but analysts do see revenue climbing 26% and its deficit narrowing when it reports in two weeks.

Dangdang has been following the Jeff Bezos playbook in China. It began by stocking hundreds of thousands of book titles. It then went on to carry more media and general merchandise, eventually introducing a marketplace platform for third-party merchants.

The strategy appears to be resonating with investors now, though Dangdang is still trading below its IPO price of $12 from three years ago.

Betting on China
There's plenty of growth still to be had if you buy the right Chinese growth stocks.

China is already the world's largest auto market -- and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free -- just click here for instant access.

Why Sherwin-Williams Shares Sank

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

What: Shares of Sherwin-Williams (NYSE: SHW  ) sank as low as 10% today after the paint specialist announced disappointing second-quarter results and said that its bid to acquire a Mexican company was rejected by antitrust regulators. 

So what: The stock has soared over the past year on solid earnings growth, but today's second-quarter miss -- adjusted EPS of $2.54 on revenue of $2.7 billion versus the consensus of $2.57 and $2.76 billion -- is forcing analysts to scale back their expectations a bit. Additionally, the decision by Mexican regulators to reject Sherman's planned $2.3 billion purchase of paint company Consorcio Comex puts another little dent into its growth prospects going forward.

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Now what: Management backed its full-year EPS guidance of $7.45-$7.55 per share and expects sales to grow in the mid-single digits. "Our Global Finishes Group continues to improve its operating margins through improved operating efficiencies and good cost control," said Chairman and CEO Christopher Connor. "The Latin America Coatings Group is managing to improve its core operating margins through selling price increases and good cost control despite the difficult environment in which they are operating." More important, with the stock now off about 15% from its 52-week highs, Mr. Market might be offering a decent opportunity to buy into that bullishness.

Solid companies selling at depressed prices have consistently helped generations of the world's most successful investors preserve capital, minimize risk, and achieve long-term, market-trampling returns. For one such company, read our free report: "The One REMARKABLE Stock to Own Now." Just click here to get started.

The Best DC Comics Movie of the Summer Isn't "Man of Steel"

Of all the wonderful things that make San Diego Comic-Con great, nothing thrills so much as the opportunity to be among the first to see a new property come to life on screen. So when I had the chance to see the world premiere of DC Entertainment's latest animated epic, Justice League: The Flashpoint Paradox, I took it. And boy, am I glad I did.

The film, based on the comic book series "Flashpoint," takes a dark departure from the typical fare in Time Warner's (NYSE: TWX  ) DC Comics universe.

The original "Flashpoint" storyline as published by DC. Source: DC Comics.

DC's scarlet speedster, The Flash, races back in time to prevent the murder of his mother. He succeeds but changes history in the process, creating a fractured timeline where the world is at war, Batman isn't quite Batman, Superman can't be found, and Cyborg is a government official.

There's more, but I won't spoil it for you. Let's just say this isn't a kid's film, and in terms of plot depth, character development, and pacing, Justice League: The Flashpoint Paradox is, in my opinion, at least as good as Man of Steel and possibly better.

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Sources: YouTube, DC Entertainment.

Surprised? Offended? Both? Look, I recognize that taste is subjective, but DC has a long history of producing excellent adult animation. Marvel hasn't been as fortunate with its tries, an oddity when you consider its relationship to Walt Disney (NYSE: DIS  ) .

Don't take my word for it. Check out the "adult animation" section at Netflix. Look at the ratio of DC films to Marvel films. Then look at the ratings and reviews for 2010's Batman: Under the Red Hood, a critical success that earned more than $7 million in direct-to-DVD sales and which gets four stars from members. More than 1.32 million Netflixers have watched as of this writing.

Flashpoint, I think, is cut from the same mold and could do just as well. All of which has me wondering why DC isn't borrowing more of its animated talent to make live-action films. Two years ago, I argued that former animation chief Bruce Timm would be an excellent choice to assume the same role at DC that Joss Whedon holds at Marvel today. I still believe that.

Whether Timm gets the nod or not -- right now, it seems unlikely -- the important point for us as investors is that DC has significant assets that, if handled as well as Flashpoint was, could become a catalyst for Time Warner stock.

Now it's your turn to weigh in. Will you see Justice League: The Flashpoint Paradox? Leave a comment to let us know what you think of DC's efforts and Time Warner stock.

You know superhero stocks aren't easy to come by. Yet The Motley Fool's chief investment officer believes he's found one. Find out more in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report now, and we'll tell you the secret identity of this under-the-radar company.

Is Seagate Still an Outperformer?

Seagate Technology (NASDAQ: STX  ) is one of the most sensitive large-cap stocks on the market, given its close ties to the ever-degrading PC industry. For a while, the company was undeservedly punished by its affiliation, even while generating tons of free cash flow, returning it to shareholders, and shifting its operating business to the current and future trends. Things have stabilized a bit, and the stock has gained more than 55% in the last year alone, but with the recent earnings report, there actually are a few points that should make investors hesitate for a moment. Is Seagate still a buy?

Long-time bull
I've been a Seagate fan over the past few years, and have tried to defend it against the short-sighted "death of the PC" argument, which suggested the company would make little effort to shift out of a declining business and let its $15 billion market cap run to zero. I've enjoyed the company's shift to enterprise-level products and increasing exposure to the almighty cloud. Management has long impressed with smart buybacks beginning deep in undervalued territory, a move that has without doubt enhanced shareholders' returns in the long run.

By all definitions, I am a Seagate bull.

The company still trades at a seemingly cheap eight times forward earnings, and as mentioned by CEO Steve Luczo, the business has and will continue to adapt to the big growth in the market -- mobile, cloud, and open source applications. But my very favorite part of the Seagate story, regardless of its falling sales figures (which continued to fall -- 65% this quarter, year over year), was the company's immense cash flow. Throughout fiscal 2013, Seagate returned 96% of its considerable free cash flow to shareholders via buybacks and dividends. If the stock is considerably undervalued, buybacks do indeed add value to the company and its shareholders over time.

As of the fourth-quarter earnings, unfortunately, the cash flow faucet seems to have a small plug.

Fix the faucet
As part of its fourth quarter and year-end report, Seagate announced an additional $2.5 billion buyback program, bringing the total available buyback option to $3.3 billion worth of shares. In order for the ongoing buyback to remain beneficial, Seagate needs cloud and enterprise sales to tick up. In the near term, that may not be the case as the company forecast revenue for $3.5 billion in the first quarter.

Over time, I still believe that Seagate will successfully mitigate the damage of the PC fallout with its growing cloud storage business. In the meantime, however, investors may want to wait and see how punishing the market is on the stock, and potentially get in at a cheaper level than we have seen in a few months. Also keep an eye on Western Digital's apparent market share gains -- an emerging concern for some analysts. Seagate traded down as much as 10% upon releasing its earnings, but recovered to a 4% loss.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies like Seagate. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Top 5 Performing Stocks To Invest In 2014

Given that you clicked on this article, it seems safe to assume you either own stock in People's United Financial (NASDAQ: PBCT  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about People's United stock before deciding whether to buy, sell, or hold it.

But before getting to that, a brief introduction is in order. Founded in 1842, People's United is one of the oldest financial institutions in the country. And today, it's one of the largest regional banks in New England, with locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire, and Maine. It currently operates 418 branches and has $30 billion in assets.

As you can see in the table above, People's United exhibits a number of core strengths. Its net interest margin exceeds the industry average by 16 basis points, showing prudent interest rate risk. Its nonperforming loans ratio is far below its typical peer, demonstrating a convincing handle on credit risk. And finally, it pays out a generous 89% of its earnings via dividends.

Top 5 Performing Stocks To Invest In 2014: Zucchi(ZUCI.MI)

Vincenzo Zucchi S.p.A. engages the in manufacture and sale of household linen. The company offers bedroom products, such as sheets and pillowcases, duvet covers, and bedspreads; bathroom products, including towels, bathrobes, and bath mats; living room products comprising sofa covers, table and kitchen products, and throws; and outdoor products consisting of travel robes, travel sheets, and beach towels. It also operates Zucchi stores and outlets. The company was founded in 1920 and is based in Rescaldina, Italy.

Top 5 Performing Stocks To Invest In 2014: MedAssets Inc.(MDAS)

MedAssets, Inc. provides technology enabled products and services for hospitals, health systems, and other non-acute healthcare providers in the United States. It operates in two segments, Spend and Clinical Resource Management, and Revenue Cycle Management. The Spend and Clinical Resource Management offers a suite of cost management services, supply chain analytics, and data capabilities; medical device and clinical resource consulting, which includes implantable physician preference items, utilization management, and service line consulting; supply chain outsourcing and procurement services; capital equipment lifecycle management; lean process and workforce optimization solutions; process improvement consulting; business intelligence tools; and performance analytics and data management tools, such as service line analytics, spend analytics and strategic information services, e-commerce, client master item file services, electronic contract portfolio catalog, and decision support services. The Revenue Cycle Management segment provides a suite of products and services spanning the revenue cycle workflow from patient access and financial responsibility; case management, coding, and documentation; charge capture and revenue integrity; strategic pricing; claims processing; denials management and reimbursement integrity; revenue cycle and supply chain integration; revenue recovery and accounts receivable management; and outsourced services. It delivers technology-enabled solutions primarily through the company-hosted software, software-as-a-service, or Web-based applications. As of December 31, 2011, the company served approximately 4,200 acute care hospitals and 100,000 ancillary or non-acute provider locations. MedAssets, Inc. was incorporated in 1999 and is headquartered in Alpharetta, Georgia.

Best Investments For 2014: Fti Foodtech International Inc. (FTI.V)

FTI Foodtech International Inc. operates in the surplus goods industry. The company has multiple products and multiple buyers. It operates the Toronto office of the North American Barter Exchange Limited (NABEL) that provides business to business communications for its members� products and services. FTI Foodtech International, through NABEL, has access to hundreds of member-companies that provide products and services in North America. In addition, the company distributes Ageless, an oxygen absorber, to new and existing clients. FTI Foodtech International Inc. is headquartered in Don Mills, Canada.

Top 5 Performing Stocks To Invest In 2014: Advocat Inc.(AVCA)

Advocat Inc., together with its subsidiaries, provides long-term care services to nursing home patients. It offers health care, nursing, personal care, and social services to their patients and residents. The company also provides rehabilitation and nutritional support services. As of June 30, 2011, it operated 9 company-owned and 37 leased nursing centers with 5,364 licensed nursing beds in Alabama, Arkansas, Florida, Kentucky, Ohio, Tennessee, Texas, and West Virginia. The company was founded in 1994 and is based in Brentwood, Tennessee.

Top 5 Performing Stocks To Invest In 2014: Shengkai Innovations Inc.(VALV)

Shengkai Innovations, Inc., through its subsidiaries, engages in designing, manufacturing, and distributing ceramic valves and components for industrial use in the People?s Republic of China. It provides ceramic valves in various categories, including gate valves, ball valves, back valves, adjustable valves, cut-off valves, and special valves. The company also offers a series of services related to industrial ceramic valves comprising manufacture, installation, and maintenance of general industrial ceramic valves, as well as the design and manufacture of various non-standard ceramic valves. It sells its products to electric power, petrochemical, chemical, aluminum, and metallurgy industries through direct sales force and agents. The company also exports its products to Europe, North America, and the Asia-Pacific region. Shengkai Innovations, Inc. is based in Tianjin, the People's Republic of China.

BMW's New Electric Car Just Became a Major Problem

On Monday, BMW (NASDAQOTH: BAMXF  ) announced that the U.S. base price for its all-electric i3 will be $41,350, not including any federal or state incentives. For General Motors' (NYSE: GM  ) Chevy Volt, and possibly Tesla Motor's (NASDAQ: TSLA  ) Model S, BMW's move spells major trouble. Here's why.

The BMW i-Concepts i3. Source: Wikimedia Commons/Motohide Miwa. 

Bad news, GM
With a starting MSRP of $39,145 in 2012, the Volt was the best-selling EV, and it's not hard to see why. Really more of an electric hybrid than a straight EV, the Volt combines a 9.3-gallon fuel tank with a lithium-ion battery. This combination allows the Volt can go an estimated 38 miles on pure battery before switching to regular fuel, which extends the range to an estimated 380 miles. Because of this combination, the Volt cuts down on range anxiety, which is still a huge deterrent to getting consumers into EVs.

Now, compare the above to BMW's all-electric i3: According to BMW, the i3 has a pure-electric range of 80-100 miles, thanks to its lithium-ion battery, and has an optional range extender that lengthens that initial range by 80 miles. Plus, thanks to BMW's eDrive technology, a driver can extend the initial range up to 124 miles by putting the vehicle in one of the "EcoPro" modes.  

Right away you can see the problem. Not only does BMW's i3 go farther on pure battery power, but with the purchase of the optional range extender, range anxiety goes way down. More pointedly, the base MSRP for the BMW is only $2,000 more than the Volt. I don't know about you, but if I had to decide between spending $39,000 for a Volt, or $2,000 more for a BMW, I'm going with the BMW, hands down.

Tesla, this is bad for you, too
Right now, Tesla is the crème-de-la-crème of EVs. But it's competing against all-electric EVs like Nissan Motors' (NASDAQOTH: NSANY  ) Leaf, and Ford's (NYSE: F  ) Focus Electric. To put it simply, Tesla's Model S can drive circles around these cars. Yes, it's more expensive, but the technology, range, and precision of the Model S makes anything else seem almost silly in comparison. BMW, however, is a luxury brand with renowned German engineering, and its new i3, and the future i8 model, presents a new challenge for Tesla.

Consider this: The i3, designed from the ground up as an EV, has received praise from some of the industry's harshest EV critics. As BBC's "Top Gear" drivers put it:

At first sampling, then, this is a compelling electric car. It's not the first on the market, but BMW has put some original thinking into almost every part of its design and engineering. It drives sweetly, is distinctively designed, and has the reassuring range-extender option if you are anxious about running flat. 

These are the same critics that gave Tesla's Roadster a less than glowing report -- in fact, Tesla sued the show for "libel and malicious falsehood" because of the review.  

What to watch for
The i3 isn't set to hit showrooms until the second quarter of 2014, and right now it's too soon to predict exactly how this will affect GM and Tesla's sales. However, given BMW's reputation, the i3's reviews, and the just released base price, this is something investors would do well to monitor.

Electric cars are gaining in popularity, but they're still a niche market. Ford, however, has its hand in EVs and is starting to make its presence known in China. China is already the world's largest auto market -- and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", names Ford and one other global giant, poised to reap big gains that could drive big rewards for investors. You can read this report right now for free -- just click here for instant access.

Dow Advances With Caution Monday

Wall Street was eager to focus on the macro issues today, as a slowdown in real estate activity eased fears that the Federal Reserve would start tapering its asset purchases anytime soon. Purchases of already-owned houses fell 1.2% in June from May, clocking in at a 5.08 million annual rate. Weekend elections in Japan also gave more congressional power to Prime Minister Shinzo Abe's Liberal Democratic Party, which boosts the likelihood that Abe's easy money policies will continue. By day's end, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up 1.8 points, or less than 0.1%, to close at 15,545. 

Microsoft (NASDAQ: MSFT  ) shares led the gains, adding 1.9%, to recoup some of the steep losses its shares suffered Friday. That was the stock's worst single day of trading since 2009, when shares plummeted 11.4% after quarterly results that threw the success of the company's Windows division into doubt. With the PC industry quickly declining, widespread complaints about the design of Windows 8, and adoption of the software being heavily driven by defense agencies rather than the private sector, you can understand the concerns there.

Hewlett-Packard (NYSE: HPQ  ) tacked on 1.5% Monday. Like Microsoft, this PC maker also had a tough go of it Friday, as shares stumbled 4.5% on the heels of Microsoft's poor performance. If you're an HP investor, then you're well aware that global PC shipments have fallen for five consecutive quarters. But combine that with the fact that HP just lost the No. 1 market share position to Lenovo, and you'd better be crossing your fingers that the new focus on IT and enterprise services works out. 

On the losing side of the mix, shares of Intel (NASDAQ: INTC  ) slumped 1.2% Monday. The chipmaker announced a new strategy in a familiar market: the processors used in servers. The company, once frequently criticized for late entry into the mobile-chip market, recently launched a mobile chip called Atom, and today it announced that it's taking aim at a low-power, multifunctional chip for the data center. 

Leading all Dow decliners, however, were McDonald's (NYSE: MCD  ) shares, which slumped 2.7% after a quarterly earnings miss and the forewarnings of future headwinds in the business moving forward. The fast food giant's CEO even made the concession that the company no longer had "as much pricing power" because of stiff price competition and customers who are willing to eat somewhere else if it saves them a few cents. The restaurateur lamented global economic struggles and the high price of marketing new, healthier options as it warned investors of the challenging fiscal year ahead.

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Top 10 Undervalued Companies To Buy Right Now

At Bentek Energy's Benposium 2013, Motley Fool Special Ops�lead advisor Tom Jacobs asked analyst Eason Jostad the question on every energy investor's mind: At what natural gas prices does a power producer want to run its coal or natural gas plants -- and drive up demand and investing profits in each? Jostad, the reputed second best Rubik's Cube player at Bentek (but the best on this issue), explains that the floor for natural gas is probably $2.50 per thousand cubic feet, where gas beats coal hands down. But it's more complex than that.�

All coal is not created equal. Powder River Basin low sulphur coal has an�upper hand�regardless of pricing, especially with EPA regulations on scrubbers at high sulphur coal burning power plants. So there are three companies -- two coal producers big in the Powder River Basin and one large power producer -- that may be undervalued when coal is unpopular with investors today.

Top 10 Undervalued Companies To Buy Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By Sam Collins]

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

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

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

Top 10 Undervalued Companies To Buy Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Dug]

  Schlumberger(SLB) continues to lead the sector, particularly outside the U.S. in the growing markets for vertical drilling. Schlumberger remains my favorite. Another smaller company to look at with growing work in complex procedures is Helmerich & Payne(HP).

• [By Rebecca Lipman]

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

• [By Robert Holmes]

   Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

  "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

  Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

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

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

Advisors' Opinion:

• [By Sam Collins]

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

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

Top 10 Undervalued Companies To Buy Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Jim Cramer,TheStreet]

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

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

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

• [By Roberto Pedone]

  Caterpillar (CAT) is staging a textbook breakout in May. Shares of heavy equipment maker haven't exactly been kind to investors year-to-date; CAT has barely broken even during a time when the broad market has been in a historic rally. But a textbook breakout should change that.

  CAT started forming an inverse head and shoulders pattern back in early April. The inverse head and shoulders is formed by two swing lows that bottom out around the same level (the shoulders), separated by a lower low called the head; the buy signal comes on the breakout above the pattern's "neckline" level, which was just below $86 for CAT. That puts this stock's upside target right around $92.

  Even though CAT has nearly hit its upside target already (the post-breakout buying has been very quick), the longer-term implication for investors is a break of the downtrend that had been haranguing shares this year. Now, with that downtrend broken, CAT should have more room to move higher. I'd just expect some consolidation first.

Can Olive Garden Save Darden Restaurants?

Darden Restaurants (NYSE: DRI  ) just closed out a tough year. Sales at the company's flagship Red Lobster, Olive Garden, and LongHorn Steakhouse locations fell hard this past winter as value-minded customers flocked to cheaper alternatives.

In the following video, Fool contributor Demitrios Kalogeropoulos talks about how Darden has responded to the exodus, noting one recent good sign: a bounce in traffic back to its Olive Garden restaurants. The bad news for investors, though, is that Darden has had to sacrifice profits to get customers back into those booths.

Whether it's with a company like Darden Restaurants, or any other stock, 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.

How Apple's Attacking Its Emerging-Market Problem

It's no secret that emerging markets are arguably the biggest thorn in Apple's (NASDAQ: AAPL  ) side. With the high prices of its iGadgets, the company has found it increasingly difficult to gain meaningful traction in countries with lower income levels. This is huge problem in Cupertino, as archrival Google's free Android OS has spread like wildfire across the globe. However, Apple isn't merely sitting idle. The company recently adopted some interesting strategies to try to build a following in critical emerging markets like India. In this video, Fool contributor Andrew Tonner breaks down Apple's bold moves in India and how it could be a template for Apple to solve one of its biggest problems.

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

Here's How Outerwall Is Making You So Much Cash

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 Outerwall (Nasdaq: OUTR  ) , 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, Outerwall generated $246.8 million cash while it booked net income of $119.1 million. That means it turned 11.2% of its revenue into FCF. That sounds pretty impressive.

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

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

So how does the cash flow at Outerwall 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 24.4% of operating cash flow coming from questionable sources, Outerwall investors should take a closer look at the underlying numbers. 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 16.0% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 45.2% 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.

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

Add Outerwall to My Watchlist.

IMAX Is a Globetrotter Because It Has to Be

IMAX (NYSE: IMAX  ) announced a deal on Monday to add 35 new screens to China and South Korea. It's a smart move, especially with RealD (NYSE: RLD  ) taking a hit last week after announcing a sequential decline in ticket sales for June.

In this video, longtime Fool contributor Rick Munarriz explains why IMAX's push overseas is the reason the company is able to grow despite some headwinds closer to home.

Pacific Rim was a disappointment for IMAX investors this past weekend, given the disappointing box office receipts, but the Pacific Rim itself is certainly not going to let investors down.

Punch your passport without leaving the country
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The Market Is Up Big. Valuations Aren't.

Canadian Stocks For 2018

Canadian Stocks For 2018