The Deal: MSCI Puts ISS on the Block

NEW YORK (The Deal) -- Proxy advisory firm Institutional Shareholders Services finds itself on the block, as index provider MSCI (MSCI) initiates a strategic review of the business it acquired only three years ago through its purchase of RiskMetrics Group.

MSCI said Wednesday, Oct. 30, that it is working with Morgan Stanley to look into options including a possible or spin-off of ISS. MSCI did not provide a specific time frame for the review, but said ISS' senior management was supportive of the decision.

"The decision to do it is not surprising," UBS analyst Alex Kramm said in a phone interview Thursday, as "MSCI is really hopping to bring greater shareholder returns through focusing on its core index business."

MSCI's index business accounted for 35% of its total revenues of $258.2 million for the third quarter of 2013, while the governance division contributed only about 11% of that number, according to company filings. ISS, which is located in Rockville, Md., guides shareholders voting on key corporate transactions, including board elections and activist investor scenarios. Other notable proxy advisory firms include Glass, Lewis & Co. and Egan-Jones Ratings Co. ISS, which forms a part of MSCI's governance division, is the only remaining business in the division. In May, MSCI sold its forensic account research business, CFRA, also a part of that division, to an unnamed buyer. Terms of the deal weren't disclosed. On that transaction, Chudd William at David Polk & Wardwell LLP served as legal counsel to MSCI. Now, MSCI CEO and president Henry Fernance said in the statement about ISS, "the time is right to explore our strategic alternatives." "Over the past three years, MSCI has worked hard to return that business to a growth track. We have launched new products, most notably executive compensation data and analytics and Quickscore, grown our salesforce, reached out to new clients and invested in the technology platform," Fernandez said showcasing ISS as an attractive asset, ripe for acquisition/ "We also strengthened the senior management team ... the Governance business reported organic revenue growth of 7% and Adjusted EBITDA growth of 12%," for the third quarter ended Sept. 30, he added.

In the same quarter, however, ISS showed a 1.4% drop in revenues to $29.6 million. On the other hand, MSCI reported a 14.6% increase in net income to $55.3 million as well as a 4.4% increase in Ebitda to $112.8 million.

MSCI bought RiskMetrics in 2010 in a cash-and-stock deal valuing the company at $21.75 per share or $1.55 billion. ISS, known as Institutional Shareholder Services, had been bought by RiskMetrics from Warburg Pincus and Hermes Investment Management in 2006 for $553 million.

After MSCI bought RiskMetrics it moved the governance business into its own division.

New York.-based MSCI trades on the New York Stock Exchange under the ticker symbol MSCI. Shares closed down 1.07% at $40.77 Thursday, giving the company a market capitalization of about $4.9 billion. MSCI spokesman Edings Thibault said the company wasn't commenting further. -- Written by Tatjana Kulkarni in New York

5 Energy Stocks Under $10 to Buy Now

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One of the most common misconceptions for beginner investors is that low single-digit share prices are what make “cheap stocks.” No matter the sector — energy stocks, tech stocks and everything in between — nothing is further from the truth.

Instead, you must look at various metrics such as price-to-earnings or price-to-book ratios to find cheap stocks … and stocks under $10 a share stock can actually be quite expensive, while picks going for over $1,000 can be the real cheap stocks.

However, that doesn’t mean these low-priced “cheap stocks” can't be a huge source of returns for a portfolio. In fact, the Fidelity Low-Priced Stock Mutual Fund (FLPSX) has managed to beat the pants off of its benchmark indices and produce market-beating annual returns since its inception.

So for investors willing to delve into the world of cheap stocks based on share price, the rewards can be great. In fact, some of the best low-priced jewels are actually energy stocks … and thus members of my favorite sector.

Featuring decent reserves and production along with low share prices, consider these energy stocks to buy now — five names that could be some of your portfolio's biggest future winners.

Energy Stocks Under $10 to Buy Now: SandRidge Energy (SD)

First on our list of cheap energy stocks under $10 a share is a company whose fortunes have changed thanks to shareholder and hedge fund activism.

SandRidge Energy's (SD) founder and CEO Tom Ward was politely shown the door after years of ”robbing shareholders blind.” High debt and a series of acquisitions gone bad caused SandRidge Energy stock to fall around 80% since going public back in 2007.

Of course, that’s also made SandRidge one of the cheapest energy stocks out there, currently going for just over $6 a share. Plus, a turnaround could be at hand for SandRidge Energy.

See, SandRidge has recently undergone some major asset sales to right its ship. The energy stock sold its offshore Gulf of Mexico assets to a private buyer for $750 million dollars. While that sale was at a loss — based on the purchase price of those assets — SD now has the cash and ability to solely focus on its onshore unconventional plays. Those include acreage in the Mid-Continent, the Permian Basin, and the up-and-coming Mississippi Lime Field formation in Oklahoma and Texas.

SandRidge Energy expects production to see 37% growth this year by redeploying the offshore capital into its Mid-Continent assets. More importantly, the bulk of that production growth will be higher valued shale oil and NGLs. Overall, that could finally be the catalysts to take SandRidge off our list of cheap energy stocks under $10 as it soars into double digits.

Energy Stocks Under $10 to Buy Now: Magnum Hunter Resources (MHR)

Investors in energy stocks looking for the next big thing in shale should focus their research on the “Land Down Under.” New reports have confirmed that Australia could be the hottest place for unconventional shale gas drilling and fracking.

Plus, you can play that trend without leaving the world of cheap stocks. Magnum Hunter Resources (MHR) is at the forefront of the movement in Australia … and MHR stock can be had for around $8.

While it does have assets in the prolific Marcellus and Utica shales, MHR has chosen Australia as its next big focus. Magnum Hunter Resources recently purchased an equity stake in Perth-based New Standard Energy (NWSTF). That investment will help New Standard in the fracking technology department, while providing MHR access to Australia's gas-rich Cooper Basin.

Already, analysts predict that Magnum Hunter Resources will grow its earnings by roughly 70% this year as its domestic shale acreage takes off. Any additional boost from its new Australian holdings will only sweeten the pot, making MHR one of the top energy stocks under $10.

Energy Stocks Under $10 to Buy Now: EXCO Resources (XCO)

Natural gas producer EXCO Resources (XCO) is one of the best cheap stocks under $10 because it’s been attracting all the right kind of attention. Namely, several big-time value investors including billionaires Wilbur Ross and Prem Watsa have loaded up on XCO stock.

The reason? The low share price of EXCO Resources doesn’t adequately reflect the real value of the natural gas it has in the ground.

Like most small-cap energy stocks, XCO is asset-rich, yet very cash-poor. EXCO Resources features strong shale assets in the Permian Basin, north Louisiana and across Appalachia. The bulk of those assets are natural gas producing and about 95% of XCO production is dry gas. With its high debt load and the relatively low price for natural gas, EXCO Resources has had trouble getting those assets out of the ground.

Sensing an opportunity, value hounds have been scooping up shares of XCO stock … perhaps in order to take the company private. In fact, this isn't the first time EXCO Resources has attracted value investors’ attention. Back in 2010, former CEO Douglas Miller tried to take XCO private at $20.50 a share. Those efforts failed and natural gas began its fall downward.

But now that XCO is one of the cheapest energy stocks at just $5 a share, Ross and Watsa might just succeed and take it private. In fact, they already own about 15% of the company. For investors, this might be one of the quickest plays on cheap energy stocks there is.

Energy Stocks Under $10 to Buy Now: Forest Oil Corporation (FST)

Like most of the low-priced cheap stocks on this list, Forest Oil (FST) is in the middle of a major turnaround. That’s because, like many energy stocks, FST continues to undergo a major shift in focus for its production.

The first stop for Forest Oil was selling its Texas Pan-handle delineated oil, natural gas and natural gas liquids assets. Those fields brought in cash proceeds of about $944 million. That much-needed cash will be used to pay down the firm's hefty debt load and enhance its overall financial flexibility.

That includes fully funding its 2014 drilling program and plowing head first into the burgeoning Eagle Ford shale.

FST continues to add to its acreage in the region and newly tapped wells have begun producing some pretty impressive numbers. Overall, Forest Oil estimates that it will see strong oil production growth for the full year as it has finally begun to overcome the “learning curve” of operating in unconventional assets.

Over the long term, analysts speculate that FST will sell off the remaining chunk of its non-core properties in order to focus strictly on the Eagle Ford. If it's successful, the current share price of this $3.30 could be more valuable than a winning lotto ticket.

Energy Stocks Under $10 to Buy Now: Quicksilver Resources (KWK)

Quicksilver Resources (KWK) is the last name on our list of cheap energy stocks under $10 … and it could also be one of the best rocket-ship plays for rising natural gas. KWK focuses primarily on unconventional reservoirs, such as shale formations, coal beds and tight sands. As such, about 99% of the company’s production comes from natural gas and NGLs.

That fact has punished KWK stock. Remember, prices for natural gas have plunged over the years due to rising North American production.

Still, the key for this cheap energy stock is the long-term trend of rising natural gas prices as the U.S. finally exports its bounty. With new LNG exporting facilities being constructed, U.S. producers will be able finally realize a higher price for their production. That will ultimately benefit KWK stock and its wide asset base. Already, Quicksilver Resources has made some strategic deals with Asian partners to buy its gas in the ground.

And at just $3 per share, KWK stock — like previously mentioned FST — could be worth a gamble whether or not this scenario plays out. As a result, it’s definitely one of the best energy stocks under $10 to buy now.

As of this writing, Aaron Levitt did not hold a position in the aforementioned securities.

Chase scraps joint credit cards

You're no longer allowed to open a joint credit card at Chase. Other banks, including HSBC and Capital One, stopped offering this option years ago.

NEW YORK (CNNMoney) Chase will no longer allow customers to open joint credit cards, a popular option for couples who want to share equal responsibility for payments.

The issuer recently pulled the plug on the option in order to "simplify" its offerings, according to a Chase spokesman. Instead of opening a joint credit card, customers will have to add their spouse, partner or anyone else they want as an authorized user to an account. Existing customers who already have joint accounts will not be impacted, however.

As joint cardholders, both people are equally liable for the amount owed. However, when there is an authorized user on the card, only the primary account holder is liable for payments. That means they run the risk of getting stuck with the payments should the relationship end. In both scenarios, the card typically appears on the credit reports of both parties and has an equal impact on their credit scores.

Eliminating the joint cardholder option is not only a way to simplify things for card issuers, but it could also be a move to avoid extra scrutiny from regulators, said Nessa Feddis, a senior vice president at American Bankers Association.

Last year, the Consumer Financial Protection Bureau announced that issuers are no longer able to deny credit card applicants based on their income -- a move that mainly benefits spouses or partners who aren't bringing in any income like stay-at-home parents.

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Since regulators want to make sure card issuers aren't requiring one-income couple! s to apply for joint accounts, simply phasing out these accounts altogether may help issuers avoid suspicion from examiners, said Feddis. Plus, now that people without income should be able to qualify for a credit card, there will likely be less need for joint accounts.

Chase isn't the first issuer to get rid of the joint credit card option. HSBC scrapped it in 2010, and Capital One stopped offering the option about ten years ago.

TD Bank and American Express have never allowed joint account holders, while Bank of America, Wells Fargo, U.S. Bank and Discover still provide customers with this option.

More banks will likely follow, said John Ulzheimer, credit expert with CreditSesame.com.

That may not be such a bad thing for consumers, he said. Opening separate credit card accounts is often a smarter option than opening joint cards. That way, there's no question about who spent what amount and who is responsible for paying it -- and, even better, one person's bad habits can't hurt the other's credit score, he said.

Texas Industries Stock Stuck in Cement: Avoid TXI

Since Texas Industries (TXI) reported its fiscal 2014 second quarter results, consensus estimates have fallen for both this year and next. It is a Zacks Rank #5 (Strong Sell) stock.

Shares of Texas Industries do not look cheap at 78x forward earnings. Although the company may be a buyout target, investors should consider waiting for the company’s earnings momentum to improve before buying the stock.

Texas Industries supplies cement, aggregate and consumer product building materials for all types of construction. Its primary markets are Texas and California.

Second Quarter Results

Texas Industries reported its fiscal 2014 second quarter results on January 8. Adjusted earnings per share came in at -35 cents, missing the Zacks Consensus Estimate of -22 cents. It was the company’s second straight earnings miss.

Net sales rose 25% to $208.9 million, but this was well below the consensus of $222.0 million. The company cited a number of “non-recurring and short-term factors” that negatively impacted its results, including “[a]bnormal periods of inclement weather in Texas”.

The company reported top-line growth in each segment (Cement, Aggregate and Concrete), but operating income fell -39% in ‘Cement’.

Estimates Falling

Following the Q2 miss, analysts revised their estimates lower for both 2014 and 2015. This sent the stock to a Zacks Rank #5 (Strong Sell) stock. The 2014 Zacks Consensus Estimate is now -44 cents per share, down from -30 cents per share just 30 days ago. The 2015 consensus is currently $1.59, down from $1.65 over the same period.

In fact, falling estimates can be seen throughout the ‘Building – Cement, Concrete, Aggregate’ industry. It ranks 236 out of 265 industries based on earnings momentum, according to the Zacks Industry Rank. That puts it in the bottom 11%.

Premium Valuation

Shares of Texas Industries trade at a lofty 78x 12-month forward earnings, well above its historical forward multiple of 13x. One reason for this premium is because it was reported that the company is considering a sale. This news sent shares soaring.

The Bottom Line

Considering the industry headwinds and its premium valuation, investors should wait for earnings momentum to improve before buying Texas Industries.

Todd Bunton, CFA is the Growth & Income Stock Strategist for Zacks Investment Research and Editor of the Income Plus Investor service.

TEXAS INDS (TXI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

4 Big Stocks on Traders' Radars

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Big Trades to Survive the S&P's Cold Spell

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Shareholder Yield Winners to Beat the S&P 500

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Nokia

Nearest Resistance: $7.50

Nearest Support: $6.50

Catalyst: Earnings Miss

Finnish cell phone maker Nokia (NOK) is getting hammered 9% lower this afternoon following an earnings miss capped off by a 29% decline in the firm's handset sales. All told, the firm ended the final quarter of 2013 by losing $34 million. While NOK had been in rally mode for the better part of the last year, today's big gap down wipes out the uptrend in shares.

From a technical standpoint, today's decline is triggering a double top setup in NOK. While there's support down at $6.50, this trade's downside target goes as far as $6.25. That's reason enough to shy away from shares of NOK in January. A quick rebound in shares looks unlikely.

BlackBerry

Nearest Resistance: $11

Nearest Support: $9

Catalyst: Nokia Sympathy Move

Shares of BlackBerry (BBRY) are off around 6% this afternoon, but the high volume drop is really just a sympathy move to today's big earnings-induced slide in Nokia. BBRY is in the same boat as Nokia right now -- once a dominant handset maker, it's been trying to regain its former glory to little success. So today's selling comes on fears that BlackBerry will post some Nokia-like declines when it announces its numbers on March 28.

The big difference is that the uptrend in BlackBerry is still technically intact. Nokia may have lower ground ahead of it, but BBRY looks like it's just correcting at $11 on the way higher. Until trendline support gets taken out, traders should buy the dips. Just keep a tight stop in place.

Netflix

Nearest Resistance: N/A

Nearest Support: $380

Catalyst: Earnings Beat

Netflix (NFLX) is one of the names that's beating the market's slump this afternoon. Shares of the streaming video service are up more than 16% as I write, after piling on millions of new subscribers and posting net profits of 79 cents per share. Analysts were only hoping for 66 cents. The news gapped shares up to open at $387.40 this morning, a new all-time high for NFLX.

Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses.

If you decide to be a buyer here, I'd recommend keeping a tight stop in place.

SLM

Nearest Resistance: $26

Nearest Support: $22

Catalyst: Earnings Follow-through

Even through SLM (SLM) announced earnings a week ago, the drop in shares is carrying over to today's 4.87% loss. SLM fell 9 cents shy of analysts' expectations in its quarterly call, and this stock has been in free-fall ever since. While shares had spent most of the last year in an orderly uptrend, that "buy the dips" scenario broke when SLM opened below its 50-day moving average on Jan. 16.

From here, it still makes sense to avoid shares. Bargain-hunters may get a chance to buy closer to $22 support, but I'd recommend waiting for SLM to carve out a meaningful base before thinking about putting money on this trade.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>3 Stocks Spiking on Big Volume

>>5 Rocket Stocks to Buy for a Short Trading Week

>>5 Sin Stocks to Play Defense in 2014

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

VMware buys AirWatch for $1.54 billion

SAN FRANCISCO - VMware agreed to buy AirWatch for $1.54 billion on Wednesday as the virtualization and cloud computing firm expands into the business of managing mobile devices securely for big companies.

VMware said it is paying about $1.175 billion in cash and roughly $365 million in installment payments and assumed unvested equity.

"With this acquisition VMware will add a foundational element to our end-user computing portfolio that will enable our customers to turbo-charge their mobile workforce without compromising security," Pat Gelsinger, CEO of VMware, said in a statement.

More and more employees are using smartphones and tablets at work, a trend known as bring your own device, or BYOD. This is a technological and security challenge for many companies' IT departments, which are used to running fleets of desktop and laptop computers.

AirWatch specializes in helping companies manage the growing number of mobile devices used by employees. It has more than 10,000 customers and over 1,600 employees in nine global offices. The firm's Atlanta headquarters is expected to expand and be the center of VMware's mobile operations.

Top High Tech Stocks To Invest In Right Now

BlackBerry, the troubled smartphone maker, is focusing more on mobile device management and security and increasingly compete with AirWatch. BlackBerry shares jumped 7.8% to $10.70 on Wednesday.

VMware will pay for the AirWatch deal through a combination of balance sheet cash and proceeds from approximately $1 billion of additional debt provided by EMC. EMC, a storage technology company, owns a majority stake in VMware.

VMware said it will continue its current share buyback program.

VMware shares rose 1.7% to $99.02 on Wednesday.

The Week Ahead: Why More Taper Tantrums Will Be Bullish

Even though the market exhibited schizophrenic behavior last week, it is still up 16% for the year, and MoneyShow's Tom Aspray makes the technical case for why a deeper correction might be just what the doctor ordered.

Stocks were hit by a wave of news last Thursday, ranging from weaker-than-expected earnings and better-than-expected data on jobs and housing, which triggered a sharply lower opening in the stock market. The weekly close below the past five-week lows in several of the key market averages is consistent with a near-term top formation.

This drop was not surprising as the market internals early in the week suggested that the market was ready to catch a "summer cold" if not something worse. There were also warnings from the bond market as some of the largest bond funds completed bear flag formations early in the week. This was a clear sign that rates were again ready to move higher.

Of course, the trend of higher rates is a global phenomenon as this chart shows the rise of both the United Kingdom's and Germany's bond yields from their spring lows. This has been accompanied by net outflows from the Treasury market of over $40 billion. This is in contrast to the large inflows that had been the normal each year since 2004.

Over the past few months, there have been signs of improvement in the Eurozone stock markets as they had been badly lagging the US for the first half of the year. For example, the German Dax was basically flat from January through the latter part of April while the US market was moving sharply higher

The economic data has now started to confirm the improvement in the Eurozone as last week it was reported that their GDP has risen to 1.2%. This is the first positive-territory reading since late 2011.

The Percentage Change chart shows that while the Spyder Trust (SPY) and US stocks are still outperforming, the Vanguard FTSE Europe ETF (VGK) is now up 9.6% for the year. It was in negative territory as recently as late June. I will be looking for a correction in the euro-focused ETFs in the next month.

The emerging markets are still lagging badly as the Vanguard FTSE Emerging Markets (VWO) is still down 8.6% this year, while the big loser has been the bonds as the iShares Barclays 20+ Year Treasury Bond ETF (TLT) is down over 15%.

NEXT PAGE: What to Watch

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Why Are U.S. Businesses Still Hoarding $1.5 Trillion in Cash?

Best Dividend Companies To Own For 2014

Alamy For years -- ever since the Great Recession ended -- pundits have been pontificating about a strange trend in corporate America. Despite earning record profits, and having the ability to borrow cash easily, companies were refusing to spend. Like Scrooge in his office, they were raking in profits ... and then sitting on them, refusing to put the money to work to grow the American economy. Or so the story went. But was it true? it true? It turns out that this real story is a bit more complicated; and you'll be surprised where a lot of that cash came from ... and what it needs to be spent on. A Kernel of Truth Every complex tale grows from a kernel of truth, of course, and this one actually grows out of two such kernels. It's true that American corporations are fabulously profitable today. According to the Department of Commerce, profit margins at U.S. companies in 2013 were regularly hitting levels of 9.3 percentage points -- more than 57 percent higher than average over the past 60 years. Also true is that these profits, in turn, yielded a lot of cash for the corporations earning them. From 2006 through mid-2013, total cash reserves at U.S. nonfinancial companies (i.e., everything but banks) nearly doubled, rising from $820 billion to $1.48 trillion, an 81 percent increase. Credit ratings company Moody's (MCO) recently estimated that cash levels at the end of 2013 probably hit $1.5 trillion.

Hot, small luxury cars target younger buyers

DETROIT — Luxury automakers, trying to avoid being seen as old and stodgy, are trying to find a fountain of youth by increasingly offering small and performance-oriented cars.

Several brands unveiled smaller cars aimed at younger buyers or new models with souped-up performance at the press preview here for the North American International Auto Show — while still sporting luxury features.

The new cars stand in contrast with the staid, bigger sedans for which many of brands are are known

Automakers hope smaller and hotter wheels will lead to more passion — and sales — for their brands. Among those introducing new models here:

• Cadillac. In launching its new ATS coupe, Cadillac "brings the excitement" in an "expressive" car, says Alan Batey, the new head of General Motors North America.

The ATS sedan — the same car with four doors instead of two — is "bringing younger people to the brand." Some 70% are being lured from other brands. By luring them young, "you grow with them."

• Lexus. The RC-F, a hopped-up version of the RC sports car making its debut, is also calibrated to try to fire up buyers about owning a car from Toyota's luxury stable. "We need to find way to attract younger folks to the Lexus brand," says Jeff Bracken, a group vice president in charge of Lexus in the U.S.

• Infiniti. The Nissan luxury brand is being remade with the notion of trying to get prospective bu! yers inspired at the thought of owning it. As a result, Infiniti showed a variant of its Q50 midsize sedan here, the Eau Rouge named after a turn in a Belgian raceway. It will get a 500-horsepower engine.

"Performance is an essential part of who we are," says Johan de Nysschen, global chief of the Infiniti brand.

All follow on the heels of Mercedes-Benz' experiment in luring customers with a sub-$30,000 sedan. Mercedes executives think that the new smaller car, the CLA-Class, is leading to success by following a simple formula.

"Get 'em young, wow them with the best experience in the business and keep them for life" is the way Mercedes-Benz' U.S. sales chief, Steve Cannon, explains it.

Mercedes sold 14,113 CLAs last year, its first year on sale, according to Autodata. Inventories are tight at dealerships. One of five customers are in their twenties, and the average age of buyers is substantially below the rest of the brand, Cannon says.

Not all automakers, however, are willing to allow dramatic dips in their prices.

While they may crave luxury baubles, most young working people can't afford to sign on the dotted line. By and large, luxury cars are "not within the reach of young buyers," says Eric Ibarra, senior analyst for Kelley Blue Book.

But, hey, at least if they grow to love the cars they can't yet afford, that's progress.

Tesla Surges on Delivery Figures; How Boeing and Rival Airbus Compared in 2013

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is 0.5% higher as of 2 p.m. EST after retail spending rose 0.2% in December, beating the projected 0.1% increase. Whereas previous results were pulled higher by automotive sales, December's aggregate number would have been up 0.7% without the 1.8% drop in auto sales. With that in mind as earnings season begins to ramp up, here are some industrial companies making headlines today.

Tesla Motors (NASDAQ: TSLA  ) appeared suddenly in an industry long dominated by Detroit's big three automakers, and it has successfully grown its niche in electric vehicles. Tesla's stock is surging 11% after the company announced it delivered 6,900 vehicles in the fourth quarter of 2013 -- that's 20% more vehicles than it had forecast.

Top 5 Value Stocks To Invest In Right Now

Tesla also expects to grow "recklessly" in 2014 and doesn't think recent recalls of Tesla Model S chargers will hinder the company's performance in any way. Over the weekend, Tesla announced it would recall 29,000 chargers while denying that the charger itself was the cause of a fire that started in Irvine, Calif.

Meanwhile, in the aviation industry, Boeing (NYSE: BA  ) and rival Airbus continue to duke it out to be the industry leader in passenger aircraft. Last year, Airbus totaled net orders of 1,503 planes compared to 1,355 for Boeing. Those orders were valued at $225 billion for Airbus compared to $198 billion for Boeing.

While Airbus topped Boeing in orders, the latter delivered more airplanes to customers. Boeing delivered 648 airplanes, boosted by its popular 737 single-aisle airplanes, compared to Airbus' 626 deliveries. Both Airbus and Boeing still boast incredible revenue transparency with their extremely large backlogs of orders, which stand at 5,559 and 5,080 aircraft, respectively. As global fleets continue to grow and mature markets replace older passenger airplanes, both stand to capture their fair share of a market they collectively dominate.

As earnings season begins to heat up, investors watching the Dow are looking toward General Electric (NYSE: GE  ) . GE is still in a transitional period of shifting its business focus from financial services toward its industrial portfolio. Analysts polled by Thomson Reuters expect General Electric to report a strong rise in earnings of more than 20% to $0.53 cents a share. As the company continues through its transitional period, expect analysts to buy into the change in its business strategy; in fact, as of last quarter, General Electric's backlog rose 13% to a record high after its industrial products surged in demand during the U.S. energy boom and the commercial-aircraft rebound.

Dividend stocks like Boeing are poised to outperform
One of the dirty secrets that few finance professionals will openly admit is that dividend stocks as a group handily outperform their non-dividend-paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

5 Stocks With Awful Operating Margin Growth — CTEL TWGP TSRA NYNY SCHN

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This week, these five stocks have the worst ratings in Operating Margin Growth, one of the eight Fundamental Categories on Portfolio Grader.

City Telecom (H.K.) Ltd. () provides fixed telecommunications networks and international telecommunications services for residential and corporate customers. CTEL also gets F’s in Earnings Growth and Sales Growth. .

Tower Group International Ltd. () is a provider of property and casualty insurance products and services. TWGP also gets F’s in Earnings Momentum, Analyst Earnings Revisions, Equity, Cash Flow and Sales Growth. .

Tessera Technologies, Inc. () invests in, licenses and delivers miniaturization technologies for electronic devices. TSRA also gets F’s in Earnings Growth, Earnings Momentum, Analyst Earnings Revisions, Equity, Cash Flow and Sales Growth. Since January 1, TSRA has fallen 2%. This is worse than the Nasdaq, which has remained flat. .

Empire Resorts, Inc. () is a gaming and resort management company. NYNY gets F’s in Earnings Growth and Equity as well. .

Schnitzer Steel Industries, Inc. Class A () is a recycler of ferrous and nonferrous scrap metal, a recycler of used and salvaged vehicles and a manufacturer of finished steel products. SCHN gets F’s in Earnings Momentum, Analyst Earnings Revisions and Cash Flow as well. Since January 1, SCHN has fallen 2.7%. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Top Bank Companies To Buy For 2014

I sheepishly raised my hand to ask the real estate guru a simple question during a "no money down"-type investment seminar in Florida back in the 1990s.

"What happens when real estate prices stop appreciating and banks refuse to lend to support your investments?"

The guru literally jumped backward, visibly disturbed someone would even think in such a way. "Impossible!" he exclaimed. "That will never happen!"

Well, the guru couldn't have been more wrong. The overheated real estate market collapsed in 2008, bringing down the house-of-cards mortgage market along with it. The largest casualty was the quasi-governmental mortgage giant Fannie Mae (OTC: FNMA).

 

The U.S. government had to take the once-thriving entity into conservatorship for its very survival. This allowed Fannie Mae to use Treasury funds to support its operations. This maneuver resulted in the once highly regarded stock to plunge into penny-stock status.

Top Bank Companies To Buy For 2014: BB&T Corp (BBT)

BB&T Corporation (BB&T) is a financial holding company. BB&T conducts its business operations primarily through its commercial bank subsidiary, Branch Banking and Trust Company (Branch Bank), which has offices in North Carolina, Virginia, Florida, Georgia, Maryland, South Carolina, Alabama, West Virginia, Kentucky, Tennessee, Texas, Washington D.C and Indiana. In addition, BB&T�� operations consist of a federally chartered thrift institution, BB&T Financial, FSB (BB&T FSB), and a number of nonbank subsidiaries, which offer financial services products. BB&T�� operations are divided into six business segments: Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Services, and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients in its geographic markets, including small and mid-size businesses, public agencies, local Governments and individuals, through 1,779 offices as of December 31, 2011. During the year ended December 31, 2011, BB&T announced the acquisitions of Liberty Benefit Insurance Services, Atlantic Risk Management Corporation and the Precept Group. In April 2012, it acquired the life and property and casualty insurance operating divisions of Roseland, New Jersey - based Crump Group Inc. On July 31, 2012, it acquired BankAtlantic.

As of December 31, 2011, the principal operating subsidiaries of BB&T included Branch Banking and Trust Company, Winston-Salem, North Carolina; BB&T Financial, FSB, Columbus, Georgia; Scott & Stringfellow, LLC, Richmond, Virginia; Clearview Correspondent Services, LLC, Richmond, Virginia; Regional Acceptance Corporation, Greenville, North Carolina; American Coastal Insurance Company, Davie, Florida, and Sterling Capital Management, LLC, Charlotte, North Carolina. Branch Bank�� principal operating subsidiaries include BB&T Equipment Finance Corporation, BB&T Investment Services, Inc., BB&T Insurance Services, Inc., Stanley, Hunt, DuPree! & Rhine (a division of Branch Bank), Prime Rate Premium Finance Corporation, Inc., Grandbridge Real Estate Capital, LLC, Lendmark Financial Services, Inc., CRC Insurance Services, Inc. and McGriff, Seibels & Williams, Inc.

Community Banking

BB&T�� Community Banking serves individual and business clients by offering a range of loan and deposit products and other financial services. As of December 31, 2011, Community Banking had a network of 1,779 banking.

Residential Mortgage Banking

Residential Mortgage Banking segment retains and services mortgage loans originated by Community Banking, as well as those purchased from various correspondent originators. Mortgage loan products include fixed and adjustable rate Government and conventional loans for the purpose of constructing, purchasing or refinancing residential properties. Substantially all of the properties are owner occupied. BB&T retains the servicing rights to all loans sold. Residential Mortgage Banking earns interest on loans held in the warehouse and portfolio, fee income from the origination and servicing of mortgage loans and recognizes gains or losses from the sale of mortgage loans. BB&T�� mortgage originations totaled $23.7 billion in 2011. BB&T�� residential mortgage servicing portfolio, which includes both retained loans and loans serviced for third parties, totaled $91.6 billion in 2011.

Dealer Financial Services

Dealer Financial Services originates loans to consumers on a prime and nonprime basis for the purchase of automobiles. Such loans are originated on an indirect basis through approved franchised and independent automobile dealers throughout the BB&T market area and nationally through Regional Acceptance Corporation. This segment also originates loans for the purchase of boats and recreational vehicles originated through dealers in BB&T�� market area. In addition, financing and servicing to dealers for their inventories is provided through a ! joint rel! ationship between Dealer Financial Services and Community Banking.

Specialized Lending

BB&T�� Specialized Lending consists of eight business units that provide specialty finance products to consumers and businesses. The internal business units include Commercial Finance that contains commercial finance and mortgage warehouse lending; and, Governmental Finance that is responsible for tax-exempt Government finance. Operating subsidiaries include BB&T Equipment Finance which provides equipment leasing within BB&T�� banking footprint; Sheffield Financial, a division of FSB Financial, a dealer-based financer of equipment for both small businesses and consumers; Lendmark Financial Services, a direct consumer finance lending company; Prime Rate Premium Finance Corporation, which includes AFCO and CAFO, insurance premium finance business units that provide funding to businesses in the United States and Canada and to consumers in certain markets within BB&T�� banking footprint, and Grandbridge Real Estate Capital, a commercial mortgage banking lender providing loans on a national basis.

Insurance Services

BB&T Insurance Services provides property and casualty, life and health insurance to businesses and individuals. It also provides small business and corporate products, such as workers compensation and professional liability, as well as surety coverage and title insurance. In addition, Insurance Services also underwrites a limited amount of property and casualty coverage.

Financial Services

Financial Services provides personal trust administration, estate planning, investment counseling, wealth management, asset management, employee benefits services, corporate banking and corporate trust services to individuals, corporations, institutions, foundations and Government entities. Financial Services also offers clients investment alternatives, including discount brokerage services, equities, fixed-rate and variable-rate annuiti! es, mutua! l funds and governmental and municipal bonds through BB&T Investment Services, Inc., a subsidiary of Branch Bank. Financial Services includes Scott & Stringfellow, LLC, a brokerage and investment banking firm. Scott & Stringfellow provides services in retail brokerage, equity and debt underwriting, investment advice, corporate finance and equity research and facilitates the origination, trading and distribution of fixed-income securities and equity products in both the public and private capital markets. Scott & Stringfellow also has a public finance department that provides investment banking services, financial advisory services and municipal bond financing. Scott & Stringfellow�� investment banking and corporate and public finance areas conduct business as BB&T Capital Markets. This segment includes BB&T Capital Partners that is a group of BB&T-sponsored private equity and mezzanine investment funds that invest in privately owned middle-market operating companies. Financial Services also includes the Corporate Banking Division that originates and services corporate relationships, syndicated lending relationships and client derivatives.

Advisors' Opinion:

• [By Amanda Alix]

  How dangerous?
  Cyber attacks on websites, particularly the DDoS-type of disruption, first began in 2001. Back then, sites like eBay (NASDAQ: EBAY  ) and Yahoo! (NASDAQ: YHOO  ) were targeted, possibly in an attempt to disrupt e-commerce. Since then, groups like Izz ad-Din-as-Qassam or groups tied to the Iranian government have staged assaults on the websites of big banks like�Bank of America (NYSE: BAC  ) , Wells Fargo (NYSE: WFC  ) , and Citgroup (NYSE: C  ) , as well as large regionals such as BB&T (NYSE: BBT  ) and PNC Financial.

• [By Rich Smith]

  Few regional banking stocks in the U.S. today cost more than BB&T (NYSE: BBT  ) stock. Indeed, the stock's biggest distinguishing factor is probably its priciness. Valued at 14.1 times trailing earnings, shares of BB&T cost 14% more than bigger rival US Bancorp (NYSE: USB  ) , and 33% more than smaller Fifth Third Bancorp (NASDAQ: FITB  ) . But is there a good reason for investors to pay up for BB&T stock?

• [By Jay Jenkins]

  A consortium of banks, lead by Citigroup (NYSE: C  ) , Bank of America (NYSE: BAC  ) , BB&T (NYSE: BBT  ) , U.S. Bancorp (NYSE: USB  ) , and KeyCorp (NYSE: KEY  ) have joined forces to develop critical technology to pave the way for true mobile banking.�

• [By Eric Volkman]

  BB&T (NYSE: BBT  ) is keeping its common stock dividend policy steady. The company has declared a quarterly distribution of $0.23 per share to be paid on June 3 to shareholders of record as of May 10. This amount matches that of the previous payout, which was distributed in February, but is 15% higher than the year-ago disbursement of $0.20 per share.

Top Bank Companies To Buy For 2014: Federal Home Loan Mortgage Corp (FMCC)

Federal Home Loan Mortgage Corporation (Freddie Mac) conducts business in the United States residential mortgage market and the global securities market. The Company operates in three segments: Single-family Guarantee, Investments, and Multifamily. The Single-family Guarantee segment reflects results from the Company's single-family credit guarantee activities. The Investments segment reflects results from the Company's investment, funding and hedging activities. The Multifamily segment reflects results from the Company's investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. The Company conducts its operations in the United States and its territories.

Single-Family Guarantee Segment

In the Company�� Single-family Guarantee segment, it purchases single-family mortgage loans originated by the Company�� seller/servicers in the primary mortgage market. The Company uses the mortgage securitization process to package the purchased mortgage loans into guaranteed mortgage-related securities. The Company guarantees the payment of principal and interest on the mortgage-related security in exchange for management and guarantee fees. The Company�� customers are lenders in the primary mortgage market that originate mortgages for homeowners. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, Housing Finance Agency (HFAs), and savings and loan associations. The Company�� customers also service loans in its single-family credit guarantee portfolio.

Mortgage securitization is a process, by which the Company purchase mortgage loans that lenders originate, and pool these loans into mortgage securities that are sold in global capital markets. The United States residential mortgage market consists of a primary mortgage market that links homebuyers and lenders and a secondary mortgage market that links lenders and investors. The Company part! icipates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities. In the Single-family Guarantee segment, it purchase and securitize single-family mortgages, which are mortgages that are secured by one- to four-family properties. The types of mortgage-related securities it issue and guarantee include PCs, REMICs and Other Structured Securities and Other Guarantee Transactions. The Company also issue mortgage-related securities to third parties in exchange for non-Freddie Mac mortgage-related securities. The non-Freddie Mac mortgage-related securities are transferred to trusts that were specifically created for the purpose of issuing securities, or certificates, in the Other Guarantee Transactions.

Investments Segment

In the Company�� Investments segment, it invests principally in mortgage-related securities and single-family performing mortgage loans, which are funded by other debt issuances and hedged using derivatives. In the Company�� Investments segment, it also provides funding and hedging management services to the Single-family Guarantee and Multifamily segments. The Company�� customers for its debt securities predominantly include insurance companies, money managers, central banks, depository institutions, and pension funds. The Company funds its investment activities by issuing short-term and long-term debt. The Company�� PCs are an integral part of its mortgage purchase program. The Company�� Single-family Guarantee segment purchases many of its mortgages by issuing PCs in exchange for those mortgage loans in guarantor swap transactions. The Company also issue PCs backed by mortgage loans that it purchased for cash.

Multifamily Segment

The Company�� multifamily segment issues Other Structured Securities, but does not issue REMIC securities. The Company multifamily segment also enters into other guarantee commitments for mult! ifamily H! FA bonds and housing revenue bonds held by third parties. The Company acquires a portion of its multifamily mortgage loans from several large seller/servicers.

The Company competes with Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), Mae Federal Housing Administration/the United States Department of Veteran Affairs (FHA/VA) and Federal Home Loan Bank (FHLB).

Advisors' Opinion:

• [By Alex Dumortier, CFA]

  Fannie and Freddie: future uncertain
  At the beginning of the month, I highlighted government mortgage agencies Federal National Mortgage Association (NASDAQOTCBB: FNMA  ) and Federal Home Loan Mortgage Corp. (NASDAQOTCBB: FMCC  ) , commonly known as Fannie Mae and Freddie Mac. As the result of an extraordinary run this year, the stocks now have, to my knowledge, the highest market capitalization of any penny stocks in the U.S. market.

• [By Dan Caplinger]

  Interestingly, though, this analysis doesn't mention an important factor: Increasingly over the past decade, major mortgage lenders haven't held onto their loans but rather have sold them on to government-sponsored enterprises Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) . During the housing boom, mortgage lenders Bank of America (NYSE: BAC  ) and Citigroup (NYSE: C  ) didn't perform as well as they did because they were securing particularly high margins on their mortgage loans. Rather, they collected transaction-based income by immediately reselling conforming loans to Fannie and Freddie, often retaining streams of income from risk-free mortgage-servicing rights without keeping any liability for potential loan default. Even now, Wells Fargo (NYSE: WFC  ) relies on strength in mortgage-related income, and decreases in refinancing activity pose a threat to income growth in future quarters -- although unlike many of its peers, Wells has actually retained a good portion of its loans on its own books.

• [By Matthew Frankel]

  A lot of news stories today have to do with Fannie Mae (NASDAQOTCBB: FNMA  ) or Freddie Mac (NASDAQOTCBB: FMCC  ) , which have both become household names as a result of the mortgage crisis. However, even though these are both very well-known companies, not very many Americans really know what the companies do and why they were created.

• [By Dan Caplinger]

  The challenge of retiree mortgages
  Recently, Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) made it a little easier for retirees to get new mortgages or to refinance their existing mortgages. By changing the rules for what a lender can consider as income to include retirement account balances in IRAs, 401(k)s, and similar accounts, the mortgage agencies hope to make it easier for low-income seniors to make beneficial moves like refinancing existing debt to capture low interest rates or moving from a large family home to a more modest home to free up locked-in home equity.

Best Undervalued Stocks To Buy For 2014: Western Alliance Bancorporation (WAL)

Western Alliance Bancorporation (WAL) is a bank holding company. The Company provides full-service banking and lending to locally owned businesses, professional firms, real estate developers and investors, local non-profit organizations, high net worth individuals and other consumers through its three wholly owned subsidiary banks (the Banks): Bank of Nevada (BON), operating in Southern Nevada; Western Alliance Bank (WAB), operating in Arizona and Northern Nevada, and Torrey Pines Bank (TPB), operating in California. In addition, the Company�� non-bank subsidiaries, Shine Investment Advisory Services, Inc. (Shine) and Western Alliance Equipment Finance (WAEF), offer an array of financial products and services to small to mid-sized businesses and their proprietors, including financial planning, custody and investments, and equipment leasing nationwide. It operates in four segments: Bank of Nevada, Western Alliance Bank, Torrey Pines Bank and Other.

The Company provides a range of banking services, as well as investment advisory services, through its consolidated subsidiaries. As of December 31, 2011, WAL owned an 80% interest in Shine. As of December 31, 2011, the Company owned a 24.9% interest in Miller/Russell & Associates, Inc. (MRA), an investment advisor. MRA provides investment advisory services to individuals, foundations, retirement plans and corporations.

Lending Activities

Through the Company�� banking segments, the Company provides a variety of financial services to customers, including commercial real estate loans, construction and land development loans, commercial loans, and consumer loans. Loans to businesses consisted 89.2% of the total loan portfolio at December 31, 2011. Loans to finance the purchase or refinancing of commercial real estate (CRE) and loans to finance inventory and working capital that are additionally secured by CRE make up the majority of its loan portfolio. These CRE loans are secured by apartment buildings, professional of! fices, industrial facilities, retail centers and other commercial properties. As of December 31, 2011, 49% of its CRE loans were owner-occupied. Owner-occupied commercial real estate loans are loans secured by owner-occupied nonfarm nonresidential properties for which the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. Non-owner-occupied commercial real estate loans are commercial real estate loans for which the primary source of repayment is nonaffiliated rental income associated with the collateral property.

Construction and land development loans include multi-family apartment projects, industrial/warehouse properties, office buildings, retail centers and medical facilities. Commercial and industrial loans include working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans. Commercial loans are primarily originated to small and medium-sized businesses in a variety of industries. Consumer loans are generally offered at a higher rate and shorter term than residential mortgages. Its consumer loans include home equity loans and lines of credit, home improvement loans, credit card loans, and personal lines of credit. As of December 31, 2011, its loan portfolio totaled $4.68 billion, or approximately 68.4% of its total assets.

Investment Activities

All of the Company�� investment securities are classified as available-for-sale (AFS) or held-to-maturity (HTM). As of December 31, 2011, the Company had an investment securities portfolio of $1.48 billion, representing approximately 21.7% of its total assets. As of December 31, 2011, its investment securities portfolio consisted of the United States Government sponsored agency securities, Municipal obligations, Adjustable-rate preferred stock, Mutual funds, Corporate bonds, Direct the United States obligation and government-! sponsored! enterprise (GSE) residential mortgage-backed securities, private label residential mortgage-backed securities, Community Reinvestment Act (CRA) investments, Trust preferred securities, Private label commercial mortgage-backed securities, and Collateralized debt obligations.

Sources of Funds

The Company offers a variety of deposit products, including checking accounts, savings accounts, money market accounts and other types of deposit accounts, including fixed-rate, fixed maturity retail certificates of deposit. As of December 31, 2011, the deposit portfolio consisted of 27.5% non-interest bearing deposits and 72.5% interest-bearing deposits. Non-interest bearing deposits consist of non-interest bearing checking account balances. In addition to its deposit base, it has access to other sources of funding, including Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) advances, repurchase agreements and unsecured lines of credit with other financial institutions.

Financial Products and Services

In addition to traditional commercial banking activities, the Company offers other financial services to customers, including Internet banking, wire transfers, electronic bill payment, lock box services, courier, and cash management services. Through Shine, a full-service financial advisory firm, the Company offers financial planning and investment management.

Advisors' Opinion:

• [By Investment Biker]

  Investment Summary: This article is on Western Alliance Bancorporation (WAL), a growth-oriented commercial lender in the Southwest. The banks looks set to improve profitability supported by economic recovery in Last Vegas, industry-leading revenue performance and operating leverage supported by expense control. The credit profile of the bank looks excellent with limited exposure to residential mortgage and well poised to grow its loan portfolio by 20% annually over the next 3 years. It is also well set on a path to credit recovery with improving fundamentals that justifies premium valuation going forward.

Top Bank Companies To Buy For 2014: M&T Bank Corporation (MTB)

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

Advisors' Opinion:

• [By Paul Ausick]

  Sterne Agee�� top pick among regional banks is M&T Bank Corp. (NYSE: MTB). Sterne Agee cut its 2014 earnings per share (EPS) estimate on the Buy-rated bank from $8.20 to $7.90 and the 2015 estimate has been cut from $9.50 to $9.00. The bank�� fundamentals are strong and it continues to experience good organic lending growth. The consensus estimate on M&T shares from Thomson Reuters is around $121.20 yielding an implied gain of 6% based on Friday�� closing price of $114.34. The forward multiple is 13.86 based on the consensus estimate for 2014 EPS of $8.25. Based on the Sterne Agee estimate of $7.90, the forward P/E ratio is around 15.4. M&T�� 52-week range is $95.68 to $119.54.

• [By Lauren Pollock]

  M&T Bank Corp.(MTB) and Hudson City Bancorp Inc.(HCBK) said they expect additional delays in completing their merger deal, and any action isn’t expected to occur until the latter half of 2014. “While all parties are disappointed that the transaction is delayed further, we are gratified that M&T continues to see the value in the Hudson City franchise,” said Hudson City CEO Ronald E. Hermance Jr.

• [By Amanda Alix]

  Too little, too late?
  Whether the new regulations have arrived in time to prevent a bust in the commercial sector similar to the one seen with home mortgages remains to be seen. Some banks, at least, are recognizing the risks and staying away. As M&T Bank (NYSE: MTB  ) vice chair Mike Pinto tells the Financial Times, "Every 10 years or so, banks make some horrible mistake, and it usually starts with easy money." Hopefully, this time, such a calamity will be avoided.

• [By Amanda Alix]

  It was a long engagement, but the union between growth-oriented M&T Bank (NYSE: MTB  ) and Hudson City Bancorp (NASDAQ: HCBK  ) looks like it is definitely back on track.

Top Bank Companies To Buy For 2014: Ellington Financial LLC (EFC)

Ellington Financial LLC (EFC) is a specialty finance company, which specializes in acquiring and managing mortgage-related assets. As of December 31, 2011, its targeted assets included residential mortgage-backed securities (RMBS), backed by prime jumbo, Alternative A-paper (Alt-A), manufactured housing and subprime residential mortgage loans (non-Agency RMBS); RMBS for which the principal and interest payments are guaranteed by a United States Government agency or a United States Government-sponsored entity (Agency RMBS); mortgage-related derivatives; commercial mortgage-backed securities (CMBS), commercial mortgage loans and other commercial real estate debt, and corporate debt and equity securities and derivatives. It also acquires and manages other types of mortgage-related assets and financial assets, such as residential whole mortgage loans, asset-backed securities (ABS), backed by consumer and commercial assets, non-mortgage-related derivatives and real property.

Non-Agency RMBS

The Company acquires non-Agency RMBS backed by prime jumbo, Alt-A, manufactured housing and subprime residential mortgage loans. Its non-Agency RMBS holdings include investment-grade and non-investment grade classes. Non-Agency RMBS are debt obligations issued by private originators of or investors in residential mortgage loans. Non-Agency RMBS are issued as CMOs and are backed by pools of whole mortgage loans or by mortgage pass-through certificates. Non-Agency RMBS are securitized in senior/subordinated structures, or in excess spread/over-collateralization structures. In senior/subordinated structures, the subordinated tranches absorb all losses on the underlying mortgage loans before any losses are borne by the senior tranches.

Agency RMBS

The Company�� assets in this asset class consist of whole pool pass-through certificates, the principal and interest of which are guaranteed by Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Cor! poration (Freddie Mac), or Government National Mortgage Association (Ginnie Mae), and which are backed by adjustable rate mortgages (ARMs), hybrid ARMs or fixed-rate mortgages. Mortgage pass-through certificates are securities representing undivided interests in pools of mortgage loans secured by real property where payments of both interest and principal, plus pre-paid principal, on the securities are made monthly to holders of the security, in effect passing through monthly payments made by the individual borrowers on the mortgage loans that underlie the securities, net of fees paid to the issuer/guarantor and servicers of the securities. Whole pool pass-through certificates are mortgage pass-through certificates that represent the entire ownership of a pool of mortgage loans.

In addition to investing in specific pools of Agency RMBS, the Company utilizes forward-settling purchases and sales of Agency RMBS where the underlying pools of mortgage loans are to be announced mortgage-backed securities (MBS) (TBAs). Pursuant to these TBA transactions, it agrees to purchase or sell, for future delivery, Agency RMBS with certain principal and interest terms and certain types of underlying collateral. It uses TBAs for hedging purposes. It engages in TBA transactions for purposes of managing certain risks associated with its long Agency RMBS and its non-Agency RMBS.

Mortgage-Related Derivatives

The Company takes long and short positions in various mortgage-related derivative instruments, including credit default swaps. A credit default swap is a credit derivative contract in which one party (the protection buyer) pays an ongoing periodic premium (and often an upfront payment as well) to another party (the protection seller) in return for compensation for default (or similar credit event) by a reference entity. In this case, the reference entity can be an individual MBS or an index of several MBS, such as an ABX Index, PrimeX or a CMBX Index.

CMBS

CMBS ar! e mortgage-backed securities collateralized by loans on commercial properties. CMBS issued are fixed rate securities backed by fixed rate loans made to multiple borrowers on a range of property types, though single-borrower CMBS and floating-rate CMBS have also been issued. Commercial mortgage loans are loans secured by liens on commercial properties, including retail, office, industrial, hotel and multifamily properties. Commercial real estate loans may also be structured into more complicated senior/subordinate structures, including those providing for multiple B-Note or multiple mezzanine loan senior/subordinate components.

Corporate Debt and Equity Securities and Derivatives

For hedging purposes, the Company takes short positions in corporate debt and equity (including indices on corporate debt and equity) by entering into derivative contracts, such as credit default swaps, total return swaps and options. These hedges reference corporations (such as financial institutions that have substantial mortgage-related exposure) or indices whose performance has a degree of correlation with the performance of its portfolio. Given this correlation, a short position with respect to such corporations or indices provides a hedge to its portfolio of MBS as a whole.

Other Assets

The Company from time to time acquires other mortgage-related and financial assets, which include residential whole mortgage loans, ABS backed by consumer and commercial assets and real property. It also acquires real property interests, such as single family and multifamily residential properties.

Top Bank Companies To Buy For 2014: Popular Inc.(BPOP)

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

Advisors' Opinion:

• [By Jake L'Ecuyer]

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

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

• [By Paul Ausick]

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

Top Bank Companies To Buy For 2014: Australia and New Zealand Banking Group Ltd (ANZ)

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

• [By Adam Haigh]

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

• [By Weiyi Lim]

  The funds lured a net $25.9 billion in the period, Wei Liang Chang, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today, citing data from EPFR Global. Developed markets posted $24.3 billion of inflows, while emerging-nation funds drew $1.6 billion, according to Chang.

• [By Adam Haigh]

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

Top Bank Companies To Buy For 2014: Federal National Mortgage Association (FNMA)

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

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

Single-Family Business

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

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

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

Multifamily Mortgage Business

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

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

Capital Markets

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

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

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

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

Advisors' Opinion:

• [By Lisa Abramowicz]

  Mortgage financiers Fannie Mae (FNMA) and Freddie Mac (FMCC) were placed into government conservatorship, insurer American International Group Inc. agreed to a U.S. takeover to avert collapse, Merrill Lynch & Co. was compelled to sell itself to Bank of America Corp. and automaker General Motors Corp. faced insolvency.

• [By Alex Dumortier, CFA]

  Federal National Mortgage Association (NASDAQOTCBB: FNMA  )
  Federal mortgage agency Federal National Mortgage Association, known as Fannie Mae, is a conundrum, and a speculative vehicle par excellence. On the back of a spectacular 676% run-up this year (see the following graph), the company has become, to my knowledge, the most valuable over-the-counter penny stock there is. With its twin, the Federal Home Loan Mortgage Corp. (NASDAQOTCBB: FMCC  ) , both of which were nationalized in 2008, during the credit crisis, these companies now have a combined market value of $5.5 billion.

• [By Jay Jenkins]

  For these mREITS, the market has ignored the rebounding real estate market, the explicit backing of�Fannie Mae� (NASDAQOTCBB: FNMA  ) and�Freddie Mac� (NASDAQOTCBB: FMCC  ) by the U.S. government, strong performances from mortgage originators this year, and the impressive dividends offered by leading companies like�American Capital Agency (NASDAQ: AGNC  ) , CYS Investments (NYSE: CYS  ) , and Hatteras Financial (NYSE: HTSI  ) .�

Google Is No Pandora Killer

Shares of Pandora (NYSE: P  ) closed slightly lower on an otherwise upbeat trading day yesterday, and it's easy to see why.

Google (NASDAQ: GOOG  ) finally introduced a new music streaming service, and Pandora -- for now -- watches over the country's most popular music streaming service.

Google All Access offers a bit of everything. It's a provider of personalized radio, just like Pandora and Sirius XM's (NASDAQ: SIRI  ) recently introduced MySXM. It's an on demand and playlist platform, just like Spotify.

Google is big. Google is smart. Google is rich. If streaming tunes is Big G's next hobby, how can Pandora survive?

Well, the most important thing working in Pandora's favor is price.

Google is really gunning for Spotify, with its identical $9.99 a month cover charge. Those signing up to Google Access between now and the end of June can lock in a $7.99 monthly rate.

Pandora is mostly consumed as a free application. Just 12% of Pandora's revenue is derived from subscriptions, and that translates into roughly 1% of Pandora's 70.1 million active monthly users. If that 99% majority was interested in paying up for a better streaming experience, don't you think that they would have already shelled out money to Pandora for ad-free music?

For once, Pandora's growing army of earbud-donning freeloaders is a good thing.

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History has proven that there are two different types of music listeners. Would Sirius XM have grown to nearly 25 million premium subscribers if Pandora was enough? Would Pandora have seen its audience grow 35% since Spotify's arrival last year if money wasn't an issue? Google, Sirius XM, and Spotify have all thrived in this climate.

If anyone takes a hit here it would Spotify, with the similar model.

Pandora's fine -- for now.

The mobile revolution is still in its infancy, but with so many different companies, it can be daunting to know how to profit in the space. Fortunately, The Motley Fool has released a free report on mobile named, "The Next Trillion-Dollar Revolution," which tells you how. The report describes why this seismic shift will dwarf any other technology revolution seen before it, and also names the company at the forefront of the trend. You can access this report today by clicking here -- it's free.

Duke Joint Venture Takes Stake in Calif. Power Transmission Line

Bridging the gap between north and south in central California, a joint venture between Duke Energy (NYSE: DUK  ) and American Transmission has completed the acquisition of the 72% of capacity owned by Atlantic Power (NYSE: AT  ) in Path 15, an 84-mile, 500-kilovolt transmission line that links the state's two power grids.

Pacific Gas & Electric owns an 18% stake in the line. Western Area Power Administration owns the remaining 10% and will continue to be responsible for operating and maintaining the line.

10 Best Safest Stocks To Own Right Now

Duke-American Transmission was formed in 2011 to develop strategic transmission projects across the U.S. and Canada. The 9-year old transmission line known as Path 15 is essential to maintaining electric system reliability and market efficiency across California. 

When the acquisition was announced in March, Duke-America President Phil Grigsby said Path 15 was "a ground-breaking project that launched the competitive transmission industry by using private capital to fund much-needed new transmission infrastructure, and we're excited to be a part of that legacy."

Duke-American Transmission paid Atlantic Power approximately $56 million for its stake. The deal also includes the buyers assuming $137 million in debt.

FLT – Fuel Your Growth Portfolio With FleetCor Technologies

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Editor's note: This column is part of our Best Stocks for 2014 contest. Louis Navellier’s pick for the contest is FleetCor Technologies (FLT).

I'm always asked for my top stock pick. "If you could only buy one stock, Louis, what would it be?" Well, I'd be miserable and out of a job if I could only pick one, but with my feet to the fire, I would choose FleetCor Technologies (FLT).

For those who aren't familiar, this company operates in a niche market with tremendous profit potential: fuel cards.

FleetCor is best known for providing payment processing services and private-label fuel credit cards to gas station operators and owners of vehicle fleets. In addition to fleet cards, the company’s other payment products include food cards and corporate lodging discount cards. Currently, FleetCor serves more than half a million commercial accounts, covering millions of cardholders across North America, Europe, Africa and Asia. Last year alone, the company processed nearly 304 million transactions.

Lately, FleetCor has been on a buying spree. This spring, FLT agreed to buy out Telenav’s (TNAV) mobile business — an operation that serves 8,000 business clients by tracking the location of mobile workers in field-based businesses. FleetCor aims to adopt the business to add value to its ongoing fuel card programs.

Also earlier this year, FLT scooped up GE Capital Australia’s fuel card business. GE Capital’s Fleet Card is currently accepted at 6,000 fuel outlets and 7,000 automotive service centers across the country. This deal is expected to add 3 cents per share to FLT earnings.

But that's not all — Fleetcor then revealed in late October that it had bought out Epyx, which specializes in fleet maintenance in the United Kingdom. Epyx operates a vehicle repair network of 9,000 service garages and provides an Internet-based system to fleet operators across the pond.

And FleetCor’s earnings history and prospects are strong.

In the most recent quarter (reported Oct. 30), FLT reported earnings of $1.08, which were up 30% year-over-year and 10% better than analyst estimates. Revenues also jumped 20% to $225.2 million and topped the Street consensus.

For the upcoming quarter, while the average business services company is headed toward a 92% drop in earnings, FleetCor is expected to post 29% growth. Analysts have been scrambling to revise their estimates up as the company continues its buying spree. This means that we’ll likely see more earnings surprises from FLT stock; after all, the company has beaten estimates for numerous consecutive quarters.

FLT stock had gained an incredible 120% with just a couple weeks to go in 2013, but still trades at a relatively reasonable 24 times forward earnings.

I like the business, I like the company and I love the growth prospects of FLT stock. FleetCor Technologies isn’t just my entry for the Best Stocks of 2014 contest, but my top pick for 2014 and probably for the next few years.

Louis Navellier is the editor of Blue Chip Growth. As of this writing, he was long FLT in his Blue Chip Growth portfolio.