2014 and the Presidential Cycle

The road ahead is likely to become a little rougher as we head into this new year, and one reason is that 2014 is a mid-term election year, says Jim Stack, editor of InvesTech Market Analyst, money manager, and noted market historian.

In the four-year Presidential Election cycle, the Presidential Election year has historically been one of relative stability and generally positive outcome for the stock market. However, mid-term election years are anything but stable.

Since 1940, these years have averaged a modest 5.7% gain, but they have seen much greater variability in market performance than Presidential Election years.

While nine of the past 18 mid-term election years have ended with double-digit market gains, five have seen double-digit losses. Thus, this year could hold a few surprises.

Mid-term election years tend to experience significant volatility. We looked at the average quarterly performance for each year of the Presidential Election Cycle since 1940.

In Year 2 (which is the mid-term election year), the first quarter shows a small average gain of 0.7%; however, this quarter still saw modest losses about half the time.

More sizable losses are typically experienced in Q2 and Q3, with these being two of the three worst quarters of the entire cycle. On average, the S&P 500 (SPX) declined -2.2% in Q2 and -0.6% in Q3.

Delving a little deeper, the second quarter has been particularly weak, with negative returns for half of the 18 years in the study and double-digit declines in four of those years. The third quarter ended with losses seven times, and five of those were double-digit losses.

Yet, despite the poor track record for the first three quarters of the year, mid-term election years generally end on a strong positive note, with an average fourth quarter gain of 7.8% and the S&P 500 finishing the quarter higher about 90% of the time.

Based on these statistics, the odds of a significant market correction are quite high this year, and it's likely to occur in the second or third quarter.

A look at the past also shows that election dynamics don't rule out a new bear market. Three of the last 12 bear markets started in mid-term election years. Still, we don't want to be overly cautious, as the average gain for Q4 is the best of the entire Election Cycle.

With the recent technical strength in the stock market and improving economic reports, there's a definite possibility of additional gains this year; however, it's important not to abandon our safety-first strategy.

Market performance during the first three quarters of a mid-term election year can be particularly weak, and if this year follows historical precedent, there is likely to be a significant pullback, or correction, around mid-year. Thus, it's advisable to proceed with caution.

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Beer Man: Blonde Ale tops Day of the Dead brews

Beer Man is a weekly profile of beers from across the country and around the world.

This week: Death Rides a Pale Horse

Cerveceria Mexicana, Tecate, Mexico

http://mexicalibeer.com

I came across some samples of Day of the Dead beer the last week of October, and although the official observances of this tradition have passed, the beers should still be available.

On Nov. 2, All Soul's Day, I tried five different DOTD ales with varying results. My favorite of the bunch was Death Rides a Pale Horse Blonde Ale. The 5.6% ABV ale had a nice light malt profile, slight sweetness and little bitterness, tempered by a bit of grassy hops. A tingly carbonation and a dryness that kicked in quickly after each sip made for a nice finish. Blonde ales can be rather bland, but this was worth having more than one.

My second favorite was Immortal Beloved Hefeweizen. It didn't skimp on the typical banana-clove aroma from the yeast and also had a hint of vanilla in the background. The flavor was quite fruity, overshadowing the wheat grain, with banana winning the fight with lemon. There was a slight sharpness to the finish that helped alleviate the fruit flavors and the creamy body.

The 5.5% ABV beer did not have the overwhelming pour that most German wheat beers do, but this did not affect the carbonation at all. A bit different from the typical wheat beer, but not detrimental to its enjoyment.

The other beers didn't quite live up to the standards of the initial two. Queen of the Night Pale Ale, Hop On or Die India Pale Ale and Death Becomes You Amber Ale were not bad, but nothing made them stand out from the hundreds of other similar beers on U.S. shelves. They were all better than Corona, however.

Cerveceria Mexicana has widespread distribution throughout the U.S., so although Day of the Dead observances are over, these beers should have some staying power on the shelves. It would be nice to see the Mexican brewery find a way to put a native spin on its beers instead of ! just offering styles that the U.S. is already bombarded with.

Many beers are available only regionally. Check the brewer's website, which often contains information on product availability. Contact Todd Haefer at beerman@postcrescent.com. To read previous Beer Man columns Click here.

Deckers Surges as Profit Falls Less-than-Expected

NEW YORK (TheStreet) - Deckers (DECK) shares were surging 14% in post-markets trading even as the UGG's maker's profits fell in the third quarter. Wall Street was expecting a larger drop in earnings.

The Goleta, Calif.-based company reported profit of $33 million, or 95 cents a share, a 23% decline compared to the same period a year ago. The decline wasn't as bad as analysts expected, easily surpassing an estimate of 72 cents a share.

Shares rose 13.6% to $66 in post-markets trading.

"The UGG brand has shown great resiliency over the past year driven by innovative new products and advancements in our marketing, merchandising and selling strategies," Chairman and CEO Angel Martinez said in the earnings statement. "The fall selling season started well led by demand for our expanded collection of casual shoes and boots. As we move further into the back half of the year, sell-through of our core Classic and slipper collections is accelerating. We are pleased with our current business trends and believe the company is well positioned for the upcoming holiday period. More importantly, we believe the investments we are making in our brands, distribution platforms and supply chain will strengthen our growth profile and enhance our profitability over the long-term," Martinez said. Deckers' net sales rose 2.7% to $386.7 million compared to the same period last year and surpassed analysts' expectations of $385.9 million. Gross margin rose 90 basis points to 43.2% in the same time period. The company's UGG brand - its largest generator of sales rose 1.3% to $337 million year over year. Deckers also makes shoes under the Teva and Sanuk brands. Same-store sales rose 1.9% in the quarter, while the company's e-commerce platform saw double-digit increase of 12.2% to $14.9 million. The company is seeing solid progress in their international sales as well, up 10.3% to $147.9 million. Decker's raised its full-year outlook on earnings and revenue. It now expects a 10% increase in earnings per share over last year's earnings of $3.45 a share, compared to 8%. Wall Street was expecting earnings of $3.77 a share. However Deckers tempered expectations of fourth-quarter earnings. It now expects diluted earnings per share to increase approximately 32% over 2012 levels, compared to its previous projection of approximately 38%. -- Written by Laurie Kulikowski in New York.

How Currency Works

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Whether we pull out paper bills or swipe a credit card, most of the transactions we engage in daily use currency. Indeed, money is the lifeblood of economies around the world.

To understand why civilized societies have used currency throughout history, it's useful to compare it to the alternative. Imagine you make shoes for a living and need to buy bread to feed your family. You approach the baker and offer a pair of shoes for a specific number of loaves. But as it turns out, he doesn't need shoes at the moment. You're out of luck unless you can find another baker - one who happens to be short on footwear - nearby. Money alleviates this problem. It provides a universal store of value that can be readily used by other members of society. That same baker might need a table instead of shoes. By accepting currency, he can sell his goods and have a convenient way to pay the furniture maker.

In general, transactions can happen at a much quicker pace because sellers have an easier time finding a buyer with whom they want to do business.

There are other important benefits of money, too. The relatively small size of coins and dollar bills makes them relatively simple to transport. Consider a corn grower who would have to load a cart full of food every time he needed to buy something.

Additionally, coins and paper have the advantage of lasting a long time, which is something that can't be said for all commodities. A farmer who relies on direct trade, for example, may only have a few weeks before his assets spoil. With money, she can accumulate and store her wealth.

Various Forms

Today, it's natural to associate currency with coins or paper notes. However, money has taken a number of different forms throughout history. In many early societies, certain commodities became a standard method of payment. Around the 16th century, for example, the Aztecs often used cocoa beans instead of trading goods directly. However, commodities have clear drawbacks in this regard. Depending on their size, they can be hard to carry around from place to place. And in many cases, they have a limited shelf life.

These are some of the reasons why minted currency was an important innovation. As far back as 2500 BC, Egyptians created metal rings that they used as money, and actual coins have been around since at least 700 BC, when they were used by a society in modern-day Turkey. Paper money didn't come about until the Tang Dynasty in China, which lasted from 618-907 AD.

More recently, technology has enabled an entirely different form of payment: electronic currency. Using a telegraph network, Western Union (NYSE:WU) completed the first electronic money transfer way back in 1871. With the advent of mainframe computers, it became possible for banks to debit or credit each others' accounts without the hassle of moving large sums of cash.

Types of Currency

So, what exactly gives our modern forms of currency – whether it's an American dollar or a Japanese yen – value? Unlike early coins made of precious metals, most of what's minted today doesn't have much intrinsic value. However, it retains its worth for one of two reasons.

In the case of "representative money," each coin or note can be exchanged for a fixed amount of a commodity. The dollar fell into this category in the years following World War II, when central banks around the world could pay the U.S. government $35 for an ounce of gold.

However, worries about a potential run on America's gold supply led President Nixon to cancel this agreement with countries around the world. By leaving the gold standard, the dollar became what's referred to as "fiat money." In other words, it holds value simply because people have faith that other parties will accept it.

Today, most of the major currencies around the world – including the euro, British pound and yen – fall into this category.

Exchange-Rate Policies

Because of the global nature of trade, parties often need to acquire foreign currencies as well. Governments have two basic policy choices when it comes to managing this process. The first is to offer a fixed exchange rate.

Here, the government pegs its own currency to one of the major world currencies, such as the American dollar or the euro, and sets a firm exchange rate between the two denominations. To preserve the local exchange rate, the nation's central bank either buys or sells the currency to which it is pegged.

The main goal of a fixed exchange rate is to create a sense of stability, especially when a nation's financial markets are less sophisticated than those in other parts of the world. Investors gain confidence by knowing the exact amount of the pegged currency they can acquire, if they so desire.

However, fixed exchange rates have also played a part in numerous currency crises in recent history. This can happen, for instance, when the purchase of local currency by the central bank leads to its overvaluation.

The alternative to this system is letting the currency float. Instead of pre-determining the price of a foreign currency, the market dictates what the cost will be. The United States is just one of the major economies that uses a floating exchange rate.

In a floating system, the rules of supply and demand govern a foreign currency's price. Therefore, an increase in the amount of money will make the denomination cheaper for foreign investors. And an increase in demand will strengthen the currency – that is, make it more expensive.

While a "strong" currency has positive connotations, there are drawbacks. Suppose that the dollar gained value against the yen. Suddenly, Japanese businesses would have to pay more to acquire American-made goods, likely passing their costs on to consumers. This makes U.S. products less competitive in overseas markets.

The Impact of Inflation

Most of the major economies around the world now use fiat currencies. Since they're not linked to a physical asset, governments have the freedom to print additional money in times of financial trouble. While this provides greater flexibility to address challenges, it also creates the opportunity to overspend.

The biggest hazard of printing too much money is hyperinflation. With more of the currency in circulation, each unit becomes worth less. While modest amounts of inflation are relatively harmless, uncontrolled devaluation can dramatically erode the purchasing power of consumers.

If inflation reaches 5 percent annually, each individual's savings – assuming it doesn't accrue substantial interest – is worth 5 percent less than it was the previous year. Naturally, it becomes harder to maintain the same standard of living.

For this reason, central banks in developed countries usually try to keep inflation under control by indirectly taking money out of circulation when the currency loses too much value.

The Bottom Line

Regardless of the form it takes, all money has the same basic goals. It helps encourage economic activity by increasing the market for various goods. And it enables consumers to store wealth and therefore address long-term needs.

EBAY Stock: Sorry, Carl Icahn, But a PayPal Spinoff Only Helps You

Popular Posts: 5 Tech Stocks With Electric Dividend Yields5 Biotech Stocks With Big Catalysts on the HorizonMore U.S. Companies Realize China Isn’t Worth the Trouble Recent Posts: EBAY Stock: Sorry, Carl Icahn, But a PayPal Spinoff Only Helps You More U.S. Companies Realize China Isn’t Worth the Trouble EXPE: Expedia Has More to Fear Than the Google Penalty Box View All Posts

Look out! Carl Icahn is on the rampage again, only this time it’s not just Apple (AAPL) that has his blood pumping. On Wednesday, the highly vocal activist investor recommended that eBay (EBAY) spin off its PayPal division as a way to unlock shareholder value and juice EBAY stock.

Is it a good idea? Sure, on paper — breaking a multi-faceted company down into its smaller, standalone parts makes it easier for investors to see exactly what they own.

But sometimes, a company is better off just dealing with keeping two distinct divisions operating under one roof.

Ebay is one of those companies.

What Icahn Wants

Just so there’s no confusion, it’s not as if Carl Icahn made a random observation as a disinterested, third-party observer — he now owns nearly 1% of all EBAY stock.

It wasn’t just an off-the-cuff hypothetical, either. Carl Icahn submitted a nonbinding proposal to spur the spinoff at the same time he nominated two of his own people to the board. There’s no guarantee those two individuals will be placed on the board — and even if they are, there’s no guarantee the board will agree to split eBay into two pieces. Still, in the name of “unlocking value,” Icahn has to at least give it a shot.

If the idea of splitting up eBay and PayPal rings a bell, there are a couple of possible reasons. One is the fact that eBay has considered doing so before. Several times, in fact. It came up in 2009 when both Skype and PayPal were on the chopping block, again in early 2012 when then-PayPal president Scott Thompson left his post for a position at the helm of Yahoo (YHOO), and it’s an idea that’s been floated to lesser degrees several times since eBay acquired PayPal back in 2002. Each time the issue has been pressed, eBay decided to hold into the payment-making division.

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If the idea of Carl Icahn wanting to split a company up seems vaguely familiar, too … well, that’s hardly anything new, either. Icahn was the key driver behind Transocean (RIG) opting to divest some of its master limited partnership holdings, he desperately wanted OshKosh (OSK) to spin off JLG, and somehow Icahn got credit for sparking Motorola’s (MSI) spinoff of its mobile phone business.

The spinoff is just one of Icahn’s oft-used ideas in a relatively small bag of tricks. (The other mainstay is harassing a company into giving a great deal of its cash back to shareholders, but that’s another story.)

But the $64,000 question is, will a spinoff of PayPal truly be the best outcome for current EBAY stock owners? Or is Carl Icahn just looking to make a quick buck, then aiming to move on to the next target?

The Rest of the Icahn (and EBAY Stock) Stories

Just for the record, Icahn’s intuitions aren’t always right. He became a huge Blockbuster stakeholder in 2005, and his position began losing ground immediately. By 2010, Blockbuster filed for bankruptcy.

Icahn also took on a 10% stake in Guaranty Financial in early 2008, with plans to force parent company Temple-Inland to spin off the bond insurer. Guaranty Financial declared bankruptcy a year-and-a-half later.

Point being, just because Icahn is a billionaire doesn’t make him right every time. Likewise, he might well be wrong about PayPal.

In fact, he probably is.

Yes, it’s true that the PayPal division is growing much faster than online-auction revenue is for eBay. Last quarter, the payment arm of the company saw a 19% increase in year-over-year revenue, while the auction and online-retailing business has struggled to grow at all, facing formidable opponent Amazon.com (AMZN). Icahn doesn’t see — or perhaps doesn’t want to see — however, that much of PayPal’s growth is the result of the online auction division.

Last quarter, one-third of new PayPal signups were driven by the e-commerce activities at www.ebay.com. Moreover, the company reports that half of the online-auction division’s earnings are being channeled toward PayPal to support its substantial growth rate.

If the two companies are split, eBay won’t be as keen on sending users to a third-party that makes money doing something eBay made a point of bringing in-house a decade ago. And you can be absolutely certain that eBay wouldn’t be writing a check to PayPal every quarter to help it keep growing at its current 19% clip.

Bottom Line

So is Carl Icahn truly missing the boat about the symbiotic relationship between PayPal and eBay (and EBAY stock, for that matter), or is he just throwing spaghetti on the wall to see if any of it sticks?

I say it’s the latter.

Remember, Carl Icahn isn’t an investor. He’s an opportunist. He doesn’t care if eBay or PayPal survive past the point he exits his position, and while he might choose to hold both for years to come after any spinoff, he also might choose to sell EBAY stock and the newly created PayPal equities five minutes after all the value is unlocked.

One thing is for sure, though … most small investors won’t know he has shed his eBay or PayPal holdings until after the fact.

Traders looking for firm evidence that Icahn isn’t truly concerned about a company’s longevity (nor is he on the same side of the table as the average investor) only have to look at a comment he made regarding a potential cash distribution he has been hounding Apple for since the middle of last year.

In an interview he gave regarding the Apple matter, Icahn said, “If we lose, we lose, from a financial point of view it might be better for a lot of shareholders if they [Apple] don’t do this.”

If he knows it might not be good for AAPL to let go of so much of its cash, yet he’s pushing for it anyway, it’s possible — even likely — he doesn’t actually think splitting eBay and PayPal is the best outcome for EBAY stock owners either.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

10 Best Insurance Stocks To Buy For 2014

U.S. Department of Health and Human Services/AP WASHINGTON -- The federal government will end its contract with CGI Federal for the error-plagued HealthCare.gov website, instead signing a contract with Accenture, The Washington Post reported Friday in its online edition. U.S.-listed shares of CGI Group (GIB), the parent of CGI Federal, were down 3.5 percent at $31.36 in late trading on the New York Stock Exchange. HealthCare.gov's technology failures in the weeks after its Oct. 1 launch created a political crisis for President Barack Obama, threatening the rollout of his signature health care law to consumers and emboldening its foes among Republican lawmakers to call for its delay. CGI has been immersed in the effort to repair the site, which began working more smoothly for hundreds of thousands of consumers in December, allowing them to enroll in new health insurance plans offered under Obama's Affordable Care Act. But the government's dissatisfaction over the website's early crash, as well as aspects of the site that still do not work, are behind plans to sign a one-year contract with Accenture (ACN) instead, the Post report said, quoting a person familiar with the matter. CGI's current contract for the work ends in late February, and the new 12-month agreement with Accenture is valued at about $90 million, the Post said. In an emailed statement, an Accenture spokesman said, "We are in discussions with clients and prospective clients all the time -- but it is not appropriate to discuss new business opportunities we may or may not be pursuing." Officials at CGI weren't immediately available for comment. The Center for Medicare and Medicaid Services, the government agency overseeing the health-reform law's rollout, wouldn't confirm or deny that it planned to end its contract with CGI. "We are working with our contract partners to make a mutually agreed upon transition to ensure that HealthCare.gov continues to operate smoothly for consumers," a CMS spokeswoman said in an emailed statement. More than 1 million people in 36 states have enrolled in health plans through HealthCare.gov, most of them in December. Another 1 million people enrolled through websites run by individual exchanges in the other 14 U.S. states. -.

10 Best Insurance Stocks To Buy For 2014: Berkshire Hathaway Inc (BRKB)

Berkshire Hathaway Inc. (Berkshire), incorporated on June 16, 1998, is a holding company owning subsidiaries engaged in a number of diverse business activities. The Company is engaged in the insurance businesses conducted on both a primary basis and a reinsurance basis, a freight rail transportation business and a group of utility, and energy generation and distribution businesses. Berkshire also owns and operates a number of other businesses engaged in a variety of activities. In October 2012, HomeServices acquired a 66.7% interest in the residential real estate brokerage franchise network in the United States. In May 2013, Berkshire acquired the remaining 20% stake in IMC International Metalworking Companies BV.

Insurance and Reinsurance Businesses

Berkshire�� insurance and reinsurance business activities are conducted through numerous domestic and foreign-based insurance entities. Berkshire�� insurance businesses provide insurance and reinsurance of property and casualty risks worldwide and also reinsure life, accident and health risks worldwide. The Company�� insurance underwriting operations are consisted of the sub-groups, including GEICO and its subsidiaries, General Re and its subsidiaries, Berkshire Hathaway Reinsurance Group and Berkshire Hathaway Primary Group. GEICO insurance subsidiaries include Government Employees Insurance Company, GEICO General Insurance Company, GEICO Indemnity Company, GEICO Casualty Company, GEICO Advantage Insurance Company, GEICO Choice Insurance Company and GEICO Secure Insurance Company. These companies primarily offers private passenger automobile insurance to individuals in all 50 states and the District of Columbia. In addition, GEICO insures motorcycles, all-terrain vehicles, recreational vehicles and small commercial fleets and acts as an agent for other insurers who offer homeowners, boat and life insurance to individuals. GEICO markets its policies primarily through direct response methods in which applications for insura! nce are submitted directly to the companies via the Internet or by telephone.

General Re Corporation (General Re) is the holding company of General Reinsurance Corporation (GRC) and its subsidiaries and affiliates. GRC�� subsidiaries include General Reinsurance AG, an international reinsurer based in Germany. General Re subsidiaries conduct business activities globally in 51 cities and provide insurance and reinsurance coverages throughout the world. General Re provides property/casualty insurance and reinsurance, life/health reinsurance and other reinsurance intermediary and risk management, underwriting management and investment management services.

Property/Casualty Reinsurance

General Re�� property/casualty reinsurance business in North America is conducted through GRC. Property/casualty operations in North America are also conducted through 16 branch offices in the United States and Canada. Reinsurance activities are marketed directly to clients without involving a broker or intermediary. General Re�� property/casualty business in North America also includes specialty insurers (primarily the General Star and Genesis companies). These specialty insurers underwrite primarily liability and workers��compensation coverages on an excess and surplus basis and excess insurance for self-insured programs. General Re�� international property/casualty reinsurance business operations are conducted through internationally-based subsidiaries on a direct basis (through General Reinsurance AG, as well as several other General Re subsidiaries in 23 countries) and through brokers (primarily through Faraday, which owns the managing agent of Syndicate 435 at Lloyd�� of London and provides capacity and participates in 100% of the results of Syndicate 435).

Life/Health Reinsurance

General Re�� North American and international life, health, long-term care and disability reinsurance coverages are written on an individual and group basis. Most! of this ! business is written on a proportional treaty basis, with the exception of the United States group health and disability business, which is predominately written on an excess treaty basis. Lesser amounts of life and disability business are written on a facultative basis. The life/health business is marketed on a direct basis.

The Berkshire Hathaway Reinsurance Group (BHRG) operates from offices located in Stamford, Connecticut. Business activities are conducted through a group of subsidiary companies, led by National Indemnity Company (NICO) and Columbia Insurance Company (Columbia). BHRG provides principally excess and quota-share reinsurance to other property and casualty insurers and reinsurers. BHRG�� underwriting activities also include life reinsurance and life annuity business written through Berkshire Hathaway Life Insurance Company of Nebraska and financial guaranty insurance written through Berkshire Hathaway Assurance Corporation.

BHRG writes catastrophe excess-of-loss treaty reinsurance contracts. BHRG also writes individual policies for primarily large or otherwise unusual discrete risks on both an excess direct and facultative reinsurance basis, referred to as individual risk, which includes policies covering terrorism, natural catastrophe and aviation risks. A catastrophe excess policy provides protection to the counterparty from the accumulation of primarily property losses arising from a single loss event or series of related events. Catastrophe and individual risk policies may provide amounts of indemnification per contract and a single loss event may produce losses under a number of contracts. BHRG also underwrites traditional non-catastrophe insurance and reinsurance coverages, referred to as multi-line property/casualty business.

The Berkshire Hathaway Primary Group is a collection of primary insurance operations that provide a range of insurance coverages to insureds located principally in the United States. NICO and certain affiliates underw! rite moto! r vehicle and general liability insurance to commercial enterprises on both an admitted and excess and surplus basis. This business is written nationwide primarily through insurance agents and brokers and is based in Omaha, Nebraska. U.S. Investment Corporation (USIC), through its four subsidiaries led by United States Liability Insurance Company, is a specialty insurer that underwrites commercial, professional and personal lines of insurance on an admitted and excess and surplus basis. Policies are marketed in all 50 states and the District of Columbia through wholesale and retail insurance agents. USIC companies underwrite and market 110 distinct specialty property and casualty insurance products. Medical Protective Corporation (MedPro) is based in Fort Wayne, Indiana. MedPro offers products and solutions through its subsidiaries, The Medical Protective Company and Princeton Insurance Company and is a primary healthcare malpractice insurance coverage and patient safety solutions to physicians, dentists, other healthcare providers and healthcare facilities. Other insurance operations include the Berkshire Hathaway Homestate Companies (BHHC), a group of six insurance companies that primarily offers standalone workers��compensation, commercial auto and commercial property coverages.

Railroad Business

Through Burlington Northern Santa Fe, LLC (BNSF) Railway, BNSF operates a railroad network in North America with approximately BNSF operates a railroad network in North America with approximately 32,500 route miles of track (excluding multiple main tracks, yard tracks and sidings) in 28 states and two Canadian provinces as of December 31, 2012. BNSF owns approximately 23,000 route miles, including easements, and operates on approximately 9,500 route miles of trackage rights that permit BNSF to operate its trains with its crews over other railroads��tracks. As of December 31, 2012, the total BNSF Railway system, including single and multiple main tracks, yard tracks and sidings,! consiste! d of approximately 50,500 operated miles of track, all of which are owned by or held under easement by BNSF except for approximately 10,500 miles operated under trackage rights.

BNSF is based in Fort Worth, Texas, and through BNSF Railway Company operates railroad systems in North America. In serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and ports of the country, BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. Over half of the freight revenues of BNSF are covered by contractual agreements of varying durations. BNSF�� primary routes, including trackage rights, allow it to access major cities and ports in the western and southern United States, as well as parts of Canada and Mexico.

Utilities and Energy Businesses

MidAmerican�� businesses are managed as separate operating units. MidAmerican�� domestic regulated energy interests are consisted of two regulated utility companies serving more than three million retail customers, two interstate natural gas pipeline companies with approximately 16,600 miles of pipeline and a design capacity of approximately 7.7 billion cubic feet of natural gas per day and a 50% interest in electric transmission businesses. Its Great Britain electricity distribution subsidiaries serve about 3.9 million electricity end-users. In addition, MidAmerican�� interests include a diversified portfolio of domestic independent power projects, a hydroelectric facility in the Philippines, the residential real estate brokerage firm in the United States and the residential real estate brokerage franchise network in the United States.

PacifiCorp is a regulated electric utility company, serving regulated retail electric customers in portions of Utah, Oregon, Wyoming, Washington, Idaho and California. The combined service territory�� diverse regional economy ranges from rural, agricultural and mining areas to urban,! manufact! uring and government service centers. As a vertically integrated electric utility, PacifiCorp owns approximately 10,600 net megawatts (MW) of generation capacity.

MidAmerican Energy Company (MEC) is a regulated electric and natural gas utility company, serving regulated retail electric and natural gas customers primarily in Iowa and also in portions of Illinois, South Dakota and Nebraska. MEC has a diverse customer base consisting of urban and rural residential customers and a range of commercial and industrial customers. In addition to retail sales and natural gas transportation, MEC sells regulated electricity principally to markets operated by regional transmission organizations and regulated natural gas to other utilities and market participants on a wholesale basis and sells non-regulated electricity and natural gas services in deregulated markets. As a vertically integrated electric and gas utility, MEC owns approximately 7,400 net megawatts of generation capacity.

The natural gas pipelines consist of Northern Natural Gas Company (Northern Natural) and Kern River Gas Transmission Company (Kern River). Northern Natural is based in Nebraska and owns interstate natural gas pipeline system in the United States reaching from southern Texas to Michigan�� Upper Peninsula. Northern Natural�� pipeline system consists of approximately 14,900 miles of natural gas pipelines. Northern Natural also operates three underground natural gas storage facilities and two liquefied natural gas storage peaking units.

Kern River is based in Utah and owns an interstate natural gas pipeline system that consists of approximately 1,700 miles and extends from supply areas in the Rocky Mountains to consuming markets in Utah, Nevada and California. Kern River transports natural gas for electric utilities and natural gas distribution utilities, major oil and natural gas companies or affiliates of such companies, electricity generating companies, energy marketing and trading companies, a! nd financ! ial institutions. The Great Britain utilities consist of Northern Powergrid (Northeast) Limited (Northern Powergrid (Northeast)) and Northern Powergrid (Yorkshire) plc (Northern Powergrid (Yorkshire)), which own a substantial Great Britain electricity distribution network that delivers electricity to end-users in northeast England in an area covering approximately 10,000 square miles. The distribution companies primarily charge supply companies regulated tariffs for the use of electrical infrastructure. MidAmerican also owns HomeServices of America, Inc. (HomeServices), a full-service residential real estate brokerage firm in the United States. HomeServices offers integrated real estate services, including mortgage originations and mortgage banking primarily through joint ventures, title and closing services, property and casualty insurance, home warranties, relocation services and other home-related services. It operates under 27 residential real estate brand names with over 16,000 sales agents and in nearly 375 brokerage offices in 21 states.

Manufacturing, Service and Retailing Businesses

Berkshire�� numerous and diverse manufacturing, service and retailing businesses. Marmon Holdings, Inc. (Marmon) consists of approximately 140 manufacturing and service businesses that operate independently within 11 diverse business sectors. These sectors are distribution services, electrical and plumbing products, industrial products, crane services, engineered wire and cable, transportation services and engineered products, food service equipment, highway technologies, retail home improvement products, retail store fixtures, and water treatment.

Distribution Services supplies specialty metal pipe and tubing, bar and sheet products to markets, including construction, industrial, aerospace and many others. Electrical and Plumbing Products is engaged in the distribution, supplying electrical building wire primarily for residential and commercial construction, and copper tube for th! e plumbin! g, heating, ventilation, and air conditioning (HVAC), refrigeration and industrial markets, through the wholesale channel. Industrial Products consists of metal fasteners and fastener coatings for the construction, industrial and other markets, gloves for industrial markets, portable lighting equipment for mining and safety markets, overhead electrification equipment for mass transit systems, custom-machined aluminum and brass forgings for the construction, energy, recreation and other industries, brass fittings and valves for commercial and industrial applications, and drawn aluminum tubing and extruded aluminum shapes for the construction, automotive, appliance, medical and other markets.

Crane Services is engaged in providing the leasing and operation of mobile cranes primarily to the energy, mining and petrochemical markets. Engineered Wire and Cable is engaged in supplying electrical and electronic wire and cable for energy related markets and other industries. Transportation Services and Engineered Products includes manufacturing, leasing and maintenance of railroad tank cars, leasing of intermodal tank containers, in-plant rail services, manufacturing of bi-modal railcar movers, wheel, axle and gear sets for light rail transit and gear products for locomotives, manufacturing of steel tank heads, and services, equipment and technology for processing and distributing sulfur.

Food Service Equipment is engaged in supplying commercial food preparation equipment for restaurants and shopping carts for retail stores. Highway Technologies primarily serve the heavy-duty highway transportation industry with trailers, fifth wheel coupling devices and undercarriage products, such as brake parts and suspension systems, and also serving the light vehicle aftermarket with clutches and related products. Retail Home Improvement Products is engaged in supplying electrical and plumbing products through the home center channel. Retail Store Fixtures provides shelving systems, other merchandising di! splays an! d related services for retail stores, as well as work and garden gloves sold at retail. Water Treatment includes residential water softening, purification and refrigeration filtration systems, treatment systems for industrial markets including power generation, oil and gas, chemical, and pulp and paper, gear drives for irrigation systems and cooling towers, and air-cooled heat exchangers.

McLane Company, Inc. (McLane) provides wholesale distribution and logistics services in all 50 states and internationally in Brazil to customers that include convenience stores, discount retailers, wholesale clubs, drug stores, military bases, quick service restaurants and casual dining restaurants. Operations include grocery distribution, foodservice distribution, beverage distribution, international logistics and software development. McLane�� foodservice distribution unit, based in Carrollton, Texas, focuses on serving the quick service restaurant industry. Operations are conducted through 18 facilities in 16 states. The foodservice distribution unit services more than 19,000 chain restaurants nationwide.

Other Manufacturing, Other Service and Retailing Businesses

Berkshire�� apparel manufacturing businesses include manufacturers of a range of clothing and footwear. Businesses engaged in the manufacture and distribution of clothing products include Fruit of the Loom, Inc. (Fruit), Russell Brands, LLC (Russell), Vanity Fair Brands, LP (VFB), Garan and Fechheimer Brothers. Berkshire�� footwear businesses include H.H. Brown Shoe Group, Justin Brands and Brooks Sports. Fruit, Russell and VFB (together FOL) is primarily a vertically integrated manufacturer and distributor of basic apparel, underwear and athletic apparel and products. Products, under the Fruit of the Loom and JERZEES labels are primarily sold in the mass merchandise and wholesale markets. In the VFB product line, Vassarette, Bestform and Curvation are sold in the mass merchandise market, while Vanity Fair and! Lily of ! France products are sold in the mid-tier chains and department stores. FOL also markets and sells athletic uniforms, apparel, sports equipment and balls to team dealers; college licensed tee shirts and fleecewear to college bookstores and mid-tier merchants; and athletic apparel, sports equipment and balls to sporting goods retailers under the Russell Athletic and Spalding brands. Additionally, Spalding markets and sells balls in the mass merchandise market and dollar store channels.

Garan designs, manufactures, imports and sells apparel primarily for children, including boys, girls, toddlers and infants. Products are sold under its own trademark Garanimals and private labels of its customers. Garan also licenses its registered trademark Garanimals to independent third parties. Garan conducts its business through operating subsidiaries located in the United States, Central America and Asia. Fechheimer Brothers manufactures, distributes and sells uniforms, principally for the public service and safety markets, including police, fire, postal and military markets. Fechheimer Brothers is based in Cincinnati, Ohio.

Justin Brands and H.H. Brown Shoe Group manufacture and distribute work, rugged outdoor and casual shoes and western-style footwear under a number of brand names, including Justin, Tony Lama, Nocona, Chippewa, Carolina, Sofft, Double-H Boots, Eurosoft, and Softspots. Acme Building Brands (Acme) manufactures and distributes clay bricks (Acme Brick and Jenkins Brick), concrete block (Featherlite) and cut limestone (Texas Quarries). In addition, Acme distributes a range of other building products of other manufacturers, including glass block, floor and wall tile, wood flooring and other masonry products. Acme also sells ceramic floor and wall tile, as well as marble, granite and other stones through its subsidiary, American Tile and Stone. Benjamin Moore & Co. (Benjamin Moore) is a formulator, manufacturer and retailer of a range of architectural coatings, available principa! lly in th! e United States and Canada. Products include water-thinnable and solvent-thinnable general purpose coatings (paints, stains and clear finishes) for use by the general public, contractors and industrial and commercial users. Products are marketed under various registered brand names, including Regal, Super Spec, MoorGard, Aura, Nattura, ben, Coronado, Insl-x and Lenmar.

Johns Manville (JM) is a manufacturer and marketer of products for building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and nonwovens for commercial, industrial and residential applications. JM serves markets that include aerospace, automotive and transportation, air handling, appliance, HVAC, pipe insulation, filtration, waterproofing, building, flooring, interiors and wind energy. The Shaw Industries Group, Inc. (Shaw) is a carpet manufacturer based on both revenue and volume of production. Shaw designs and manufactures over 3,000 styles of tufted carpet, tufted and woven rugs, laminate and wood flooring for residential and commercial use under about 30 brand and trade names and under certain private labels. Shaw also provides installation services and sells ceramic and vinyl tile along with sheet vinyl. Forest River, Inc. (Forest River) is a manufacturer of recreational vehicles, utility, cargo and office trailers, buses and pontoon boats. Albecca Inc. (Albecca) does business primarily under the Larson-Juhl name. Albecca designs, manufactures and distributes a range of products, including wood and metal molding, matboard, foamboard, glass, equipment and other framing supplies in the United States, Canada and 15 countries outside of North America.

FlightSafety International Inc. (FSI) is engaged in professional aviation training services to individuals, businesses (including certain commercial aviation companies) and the United States. Government. FSI primarily provides training to pilots, aircraft maintenance technicians, flight attendants and dispatchers who op! erate and! support a range of business, commercial and military aircraft. NetJets Inc. (NJ) is a provider of fractional ownership programs for general aviation aircraft. TTI, Inc. (TTI) is a specialty distributor of passive, interconnect, electromechanical and discrete components used by customers in the manufacturing and assembling of electronic products. TTI�� customer base includes original equipment manufacturers, electronic manufacturing services, original design manufacturers, military and commercial customers, as well as design and system engineers. TTI services a range of industries, including telecommunications, medical devices, computers and office equipment, aerospace, automotive and consumer electronics.

Finance and Financial Products

The Company�� finance and financial products businesses include manufactured housing and finance (Clayton Homes), transportation equipment leasing (XTRA), furniture leasing (CORT), as well as various miscellaneous financing activities. Clayton Homes, Inc. (Clayton) is a vertically integrated manufactured housing company. As of December 31, 2012, Clayton operated 34 manufacturing plants in 12 states. Clayton�� homes are marketed in 48 states through a network of 1,441 retailers, including 323 company-owned home centers. XTRA is a transportation equipment lessor operating under the XTRA Lease brand name. XTRA manages a diverse fleet of approximately 82,000 units located at 58 facilities throughout the United States and two facilities in Canada. The fleet includes over-the-road and storage trailers, chassis, temperature controlled vans and flatbed trailers. CORT Business Services Corporation is a provider of rental relocation services, including rental furniture, accessories and related services in the rent-to-rent segment of the furniture rental industry.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  Berkshire Hathaway is an investment manager with a variety of investments in a number of industries. It is being reported that the company made significant gains from investments during the Financial Crisis. The stock has been flying higher in recent years and is now consolidating near all time high prices. Over the last four quarters, earnings and revenues have been rising. Relative to its peers and sector, Berkshire Hathaway �has been an average year-to-date performer. Look for Berkshire Hathaway to OUTPERFORM.

10 Best Insurance Stocks To Buy For 2014: Cincinnati Financial Corporation(CINF)

Cincinnati Financial Corporation engages in the property casualty insurance business in the United States. Its Commercial Lines Property Casualty Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers? compensation. It also offers specialty packages, including coverages for property, liability, and business interruption for specific industry classes, such as artisan contractors, dentists, or street businesses. In addition, this segment provides contract and commercial surety bonds, fidelity bonds, and director and officer liability insurance, as well as machinery and equipment coverage. The company?s Personal Lines Property Casualty Insurance segment offers coverage for personal auto and homeowners, as well as other insurance products, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. Cincinnati Financial?s Excess and Surplus Lines Property Casualty Insurance s egment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, including products and completed operations; and commercial property insurance, which insures loss or damage to buildings, inventory, equipment, and business income from causes of loss, such as fire, wind, hail, water, theft, and vandalism. The company?s Life Insurance segment provides term insurance; universal life insurance; whole life insurance; and worksite products, which include term, whole life, universal life, and disability insurance offered to employees through their employer. This segment also markets disability income insurance, deferred annuities, and immediate annuities. Its Investment segment invests in fixed-maturity investments, equity investments, and short-term investments. Cincinnati also offers commercial leasing and financing services. The company was founded in 1950 and is headquarte red in Fairfield, Ohio.

Advisors' Opinion:

• [By Insider Monkey]

  Cincinnati Financial (CINF), lastly, is an under-covered insurance company that has grown dividends in 53 straight years. The stock pays a yield of 3.5% at a modest payout of 47% of earnings, and in 2013, it has appreciated by more than 20%. Three Cincinnati Financial insiders-one director, a senior VP and the company's CFO-have bought shares in the past six months. CFO Michael Sewell initiated the biggest transaction of the bunch when he bought $147K worth of the stock in the last few days of July.

Top 5 Insurance Companies To Own In Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Namitha Jagadeesh]

  HSBC Holdings Plc (HSBA), Europe�� largest bank, slid 2.1 percent. International Consolidated Airlines Group SA (IAG) declined 2 percent as it canceled some of its flights following a disruption caused by one of its planes at Heathrow airport. Next Plc (NXT) retreated 2.4 percent as Morgan Stanley cut its recommendation on the shares.

• [By Holly LaFon]

  He increased his holdings in gold companies in the fourth quarter accordingly. Gold stocks he found attractive in the fourth quarter are: Novagold Resources (NG), Randgold Resources (GOLD), Iamgold Corp. (IAG), Barrick Gold Corp. (ABX), Agnico Eagle (AEM) and International Tower Hill (THM).

• [By Rich Duprey]

  IAMGOLD (NYSE: IAG  ) still has an interest in the�Quimsacocha gold mine it sold to INV Metals last year, which has an indicated mineral resource estimated at 3.3 million ounces gold. China's�Ecuacorriente is also pursing a major copper project at Panantza-San Carlos, and International Minerals will seek out gold and silver at Rio Blanco.

10 Best Insurance Stocks To Buy For 2014: Principal Financial Group Inc(PFG)

Principal Financial Group, Inc. provides retirement savings, investment, and insurance products and services worldwide. The company?s Retirement and Investor Services segment provides retirement savings and related investment products and services, including a portfolio of asset accumulation products and services primarily to small and medium-sized businesses and individuals in the United States. This segment offers products and services to businesses for defined contribution pension plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, and employee stock ownership plan consulting services; and annuities, mutual funds, and bank products and services to the employees of its business customers and other individuals. Principal Financial Group?s Principal Global Investors segment offers a range of equity, fixed income, and real estate investments, as well as specialized overlay and advisory services to institutional inve stors. The company?s Principal International segment offers retirement products and services, annuities, mutual funds, institutional asset management, and life insurance accumulation products in Brazil, Chile, China, Hong Kong SAR, India, Indonesia, Malaysia, Mexico, Singapore, and Thailand. Principal Financial Group?s U.S. Insurance Solutions segment offers individual life insurance, as well as specialty benefits in the United States. Its individual life insurance products include universal and variable universal life insurance and traditional life insurance; and specialty benefit products comprise group dental and vision insurance, individual and group disability insurance, and group life insurance, as well as fee-for-service claims administration and wellness services. The company was founded in 1879 and is based in Des Moines, Iowa.

10 Best Insurance Stocks To Buy For 2014: Axa SA (AXA)

Axa SA (AXA) is a France-based holding company engaged in the business of financial protection, insurance and asset management. It operates in three segments: Life & Savings, Property & Casualty Insurance and Asset Management. The Company�� business involves the sale of savings policies, retirement accounts, estate planning services, health insurance, car and home insurance, insurance against property damage and civil liability, among others, for individual and business clients. AXA operates through subsidiaries in Europe, North America, and the Asia-Pacific Region alsoin the Middle East, Africa, and Latin America. In November 2012, the Company acquired HSBC Bank Plc P&C�� operations in Hong Kong and Singapore and in October 2013, it sold MONY Life Insurance Co to Protective Life Insurance Company. On September 30, 2013, AXA SA's private equity arm completed a spin out from its parent company, and was named Ardian. In October 2013, it created Axa Lab and Silicon Valley.

10 Best Insurance Stocks To Buy For 2014: Lincoln National Corporation (LNC)

Lincoln National Corporation, through its subsidiaries, engages in multiple insurance and retirement businesses in the United States. The company operates in Annuities, Retirement Plan Services, Life Insurance, and Group Protection segments. It sells a range of wealth protection, accumulation, and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term life insurance, employer-sponsored defined contribution retirement plans, mutual funds and group life, disability, and dental products. The company also provides employer-sponsored fixed and variable annuities, and mutual fund-based programs; single and survivorship versions of UL and VUL, including corporate-owned UL and VUL, and bank-owned UL and VUL products to small- to mid-sized banks, and mid- to large-sized corporations; and group non-medical insurance products, prin cipally term life, universal life, disability, dental, vision, accident, and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. Lincoln National Corporation distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1904 and is headquartered in Radnor, Pennsylvania.

Advisors' Opinion:

• [By Sean Williams]

  Finally, shares of life insurance company Lincoln National (NYSE: LNC  ) added 5.7% on the day despite no company-specific news. Today's move higher could very well just be carryover from its third-quarter results reported a little more than a week ago where it handily topped the consensus EPS and revenue forecast of analysts. Annuities and retirement planning services have been a big boost to the sector over the past couple of quarters, and a rising market is surely going to encourage investors, young and old, to consider jumping back in and investing for their futures.

• [By Jonas Elmerraji]

  Lincoln National (LNC) is a financial stock that's forming a channel of its own... But with a twist.

  That's because the $12 billion wealth management firm is moving sideways in a range-bound trade called a rectangle. The setup gets its name because price action is essentially "boxed-in" by resistance above shares at $45, and support to the downside at $42. Instead of buying within the channel, rectangles are breakout trades – you want to trade this name when it breaks outside of the box.

  That means that a move through the $45 level is a buy signal, and a move through support at $42 is an indicator that it's time to sell (or short) LNC. Right now, there's some extra bias to the upside – typically, rectangles are continuation patterns, and since Lincoln's preceding price action was up, it's likely next move is up as well. Still, it doesn't become a high probability trade until the breakout happens, so wait to get your direction from the market.

• [By Rich Duprey]

  Insurance provider�Lincoln National� (NYSE: LNC  ) �announced yesterday�its second-quarter dividend of $0.12 per share, the same rate it paid for the past two quarters after raising the payout 50%, from $0.08 per share.

• [By Monica Wolfe]

  Bruce Berkowitz�� second quarter Fairholme Capital Management portfolio was released yesterday and noted two new stocks to his holdings: Lincoln National Corp (LNC) and Hartford Financial Services (HIG).

10 Best Insurance Stocks To Buy For 2014: AmTrust Financial Services Inc (AFSI.O)

Amtrust Financial Services, Inc., incorporated on November 7, 1990, is a holding company. The Company is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. The Company operates in four business segments: small commercial business, specialty program and personal lines reinsurance. The Company transacts business through 11 insurance company subsidiaries: Technology Insurance Company, Inc. (TIC), Rochdale Insurance Company (RIC), Wesco Insurance Company (WIC), Associated Industries Insurance Company, Inc. (AIIC), Milwaukee Casualty Insurance Company (MCIC), Security National Insurance Company (SNIC), AmTrust Insurance Company of Kansas, Inc. (AICK) and AmTrust Lloyd�� Insurance Company of Texas (ALIC). In January 2013, the Company acquired First Nonprofit Companies, Inc. In February 2013, the Company's subsidiary acquired Car Care Plan (Holdings) Limited (CCPH) from Ally Insurance Holdings, Inc.

Sma ll Commercial Business

Small Commercial Business segment provides workers��compensation to small businesses that operate in low and medium hazard classes, such as restaurants, retail stores, physicians and other professional offices, and commercial package and other property and casualty insurance products to small businesses. The Company is authorized to write its Small Commercial Business products in all 50 states. The Company distributes its policies through a network of over 8,100 select retail and wholesale agents who are paid commissions based on the annual policy premiums written. Commercial package products provide a range of insurance to small businesses, including commercial property, general liability, inland marine, automobile, workers��compensation, and umbrella coverage.

The Company maintains Small Commercial Business property and casualty claims operations in several of its domestic offices and the commercial package claims opera tion is separated into four processing units: casualty, pr! op! erty, cost-containment/recovery and a fast-track physical damage unit. As of December 31, 2012, its Small Commercial Business property and casualty claims were approximately 61% automobile and 13% property and inland marine with the remaining 26% involving general liability and umbrella losses.

Specialty Risk and Extended Warranty

The Company��Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans offered in connection with the sale of consumer and commercial goods in the United States and Europe, and certain niche property, casualty and specialty liability risks in the United States and Europe, including general liability, employers��liability and professional and medical liability. specialty risk business primarily covers, such as legal expenses in the event of unsuccessful litigation; property damage for resid ential properties; home emergency repairs caused by incidents affecting systems, such as plumbing, wiring or central heating; latent defects that materialize on real property after building or completion; payment protection to insureds if they become unable to meet financial obligations under finance contracts; guaranteed asset protection (GAP) to cover the difference between an insurer�� settlement and the asset value in the event of a total loss, and general liability, employers��liability, public liability, negligence of advisors and liability of health care providers and medical facilities.

The Company's extended warranty business covers selected consumer and commercial goods and other risks, including personal computers; consumer electronics, such as televisions and home theater components; consumer appliances, such as refrigerators and washing machines; automobiles (excluding liability coverage); furniture, and heavy equipment. The Company also serve a s a third party administrator to provide claims handli! ng and! c! all cen! ter services to the consumer products and automotive industries in the United States and Canada. It underwrites the specialty risk coverage on a coverage plan-level basis, which involves substantial data collection and actuarial analysis, as well as analysis of applicable laws governing policy coverage language and exclusions.

Specialty Program

The Company�� Specialty Program segment provides workers��compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance to a narrowly defined, homogeneous group of small and middle market companies. The type of risk covered by this segment is similar to the type of risk in Small Commercial Business but also covers, to a small extent, certain higher risk businesses. The coverage is offered through accounts with various agents to multiple insureds. Policyholders in this segment primarily include industries, such as retail, wholesale, service operations, artisan contracting, trucking, light and medium manufacturing, habitational and professional employer organizations. As of December 31, 2012, the Company underwrote 77 programs through 44 independent wholesale and managing general agents. Workers��compensation insurance consists approximately 33% of this business during the year ended December 31, 2012.

Personal Lines Reinsurance

The Company�� Personal Lines Reinsurance Segment has a 20% participation in the Personal Lines Quota Share, by which it receive 10% of the net premiums of the personal lines business. The Personal Lines Quota Share provides that the reinsurers, severally, in accordance with their participation percentages, will receive 50% of the net premium of the GMACI Insurers and assume 50% of the related net losses.

10 Best Insurance Stocks To Buy For 2014: Metlife Inc (MET)

MetLife, Inc. (MetLife), incorporated on August 10, 1999, is a provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife operates in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. It is organized into six segments: Insurance Products, Retirement Products, Corporate Benefit Funding and Auto & Home (collectively, U.S. Business), and Japan and Other International Regions (collectively, International). In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Bank, National Association (MetLife Bank) and other business activities. U.S. Business provides insurance and financial services products, including life, dental, disability, auto and homeowner insurance, guaranteed interest and stable value products, and annuities through independent retail distribution channels, as well as at the workplace. Outside the U.S., it operates in Japan and over 50 countries within Latin America, Asia Pacific, Europe and the Middle East. MetLife is the life insurer in Mexico and also holds positions in Japan, Poland, Chile and Korea. This business provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement and savings products to both individuals and groups. In August 2012, it acquired Reynolds Plantation. In January 2013, the Company completed the sale of MetLife Bank, N.A.'s deposit business. Effective July 25, 2013, MetLife Inc acquired Broadstone Laurel Highlands, from Alliance Residential Fund I. In September 2013, MetLife Inc and Thayer Lodging Group acquired the 365-room Hilton Los Cabos Beach & Golf Resort in Cabo San Lucas, Mexico in a joint venture.

Insurance Products

The Insurance Products segment offers a range of protection products and services aimed at serving the financial needs of its customers throughout their lives. These pro! ducts are sold to individuals and corporations, as well as other institutions and their respective employees. It is organized in three businesses: Group Life, Individual Life and Non-Medical Health.

The Group Life insurance products and services include variable life, universal life, and term life products. It offer group insurance products as employer-paid benefits or as voluntary benefits where all or a portion of the premiums are paid by the employee. These group products and services also include employee paid supplemental life and are offered as standard products or may be tailored to meet specific customer needs.

The Individual Life insurance products and services include variable life, universal life, term life and whole life products. Additionally, through its broker-dealer affiliates, it offers a full range of mutual funds and other securities products. The products within both Group Life and Individual Life include Variable Life, Universal Life, Term Life and Whole Life. Variable life products provide insurance coverage through a contract that gives the policyholder the policyholder flexibility in investment choices and, depending on the product, in premium payments and coverage amounts, with certain guarantees. With variable life products, premiums and account balances can be directed by the policyholder into a variety of separate account investment options or directed to the Company�� general account. In the separate account investment options, the policyholder bears the entire risk of the investment results.

Universal life products provide insurance coverage on the same basis as variable life, except that premiums, and the resulting accumulated balances, are allocated only to the Company�� general account. Universal life products may allow the insured to increase or decrease the amount of death benefit coverage over the term of the contract and the owner to adjust the frequency and amount of premium payments.

Term life products provid! e a guara! nteed benefit upon the death of the insured for a specified time period in return for the periodic payment of premiums. Specified coverage periods range from one year to 30 years, but in no event are they longer than the period over, which premiums are paid. Death benefits may be level over the period or decreasing. Decreasing coverage is used principally to provide for loan repayment in the event of death. Premiums may be guaranteed at a level amount for the coverage period or may be non-level and non-guaranteed. Term insurance products are sometimes referred to as pure protection products, in that there are typically no savings or investment elements. Term contracts expire without value at the end of the coverage period when the insured party is still living.

Whole life products provide a guaranteed benefit upon the death of the insured in return for the periodic payment of a fixed premium over a predetermined period. Premium payments may be required for the entire life of the contract period, to a specified age or period, and may be level or change in accordance with a predetermined schedule. Whole life insurance includes policies that provide a participation feature in the form of dividends. Policyholders may receive dividends in cash or apply them to increase death benefits, increase cash values available upon surrender or reduce the premiums required to maintain the contract in-force.

The Non-Medical Health products and services include dental insurance, group short- and long-term disability, individual disability income, long-term care (LTC), critical illness and accidental death & dismemberment coverage. Other products and services include employer-sponsored auto and homeowners insurance provided through the Auto & Home segment and prepaid legal plans. The Company also sells administrative services-only (ASO) arrangements to some employers. The products in this area are Dental, Disability and Long-term Care (LTC). Dental products provide insurance and ASO plans that ass! ist emplo! yees, retirees and their families in maintaining oral health while reducing out-of-pocket expenses and providing superior customer service. Dental plans include the Preferred Dentist Program and the Dental Health Maintenance Organization. Disability products provide a benefit in the event of the disability of the insured. This benefit is in the form of monthly income paid until the insured reaches age 65. In addition to income replacement, the product may be used to provide for the payment of business overhead expenses for disabled business owners or mortgage payment protection. This is offered on both a group and individual basis. LTC products provide protection against the potentially high costs of LTC services. They generally pay benefits to insureds that need assistance with activities of daily living or have a cognitive impairment.

Retirement Products

The Retirement products segment includes a variety of variable and fixed annuities that are primarily sold to individuals and employees of corporations and other institutions. The products in this area are Variable Annuities and Fixed Annuities. Variable annuities provide for both asset accumulation and asset distribution needs. Variable annuities allow the contract holder to make deposits into various investment options in a separate account, as determined by the contract holder. The risks associated with such investment options are borne entirely by the contract holder, except where guaranteed minimum benefits are involved.

Fixed annuities provide for both asset accumulation and asset distribution needs. Fixed annuities do not allow the same investment flexibility provided by variable annuities, but provide guarantees related to the preservation of principal and interest credited.

Corporate Benefit Funding

The Corporate Benefit Funding segment includes a range of annuity and investment products, including, guaranteed interest products and other stable value products, income annuitie! s, and se! parate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes certain products to fund postretirement benefits and company, bank or trust owned life insurance used to finance non-qualified benefit programs for executives. The products in this area are Stable Value Products, Pensions Closeouts, Torts and Settlements, Capital Markets Investment Products and other Corporate Benefit Funding Products and Services. The Company offers general account guaranteed interest contracts, separate account guaranteed interest contracts, and similar products used to support the stable value option of defined contribution plans. It also offers private floating rate funding agreements that are used for money market funds, securities lending cash collateral portfolios and short-term investment funds.

The Company offers general account and separate account annuity products, generally in connection with the termination of defined benefit pension plans, both in the United States and the United Kingdom. It also offers partial risk transfer solutions that allow for partial transfers of pension liabilities and annuity products that include single premium buyouts. It offers strategies for complex litigation settlements, primarily structured settlement annuities. Under the Capital Markets Investment Products, the products offered include funding agreements, Federal Home Loan Bank advances and funding agreement-backed commercial paper. Under the Other Corporate Benefit Funding Products and Services, it offers specialized insurance products designed specifically to provide solutions for non-qualified benefit and retiree benefit funding purposes.

Auto & Home

The Auto & Home segment includes personal lines property and casualty insurance offered directly to employees at their employer�� worksite, as well as to individuals through a variety of retail distribution channels, including independent agents, property and casu! alty spec! ialists, direct response marketing and the individual distribution sales group. Auto & Home primarily sells auto insurance, which represented 67% of Auto & Home�� total net earned premiums in 2011. Homeowners and other insurance represented 33% of Auto & Home�� total net earned premiums in 2011. The products in this area are Auto Coverages and Homeowners and Other Coverages. Auto insurance policies provide coverage for private passenger automobiles, utility automobiles and vans, motorcycles, motor homes, antique or classic automobiles and trailers. Auto & Home offers traditional coverage, such as liability, uninsured motorist, no fault or personal injury protection, as well as collision and comprehensive. Homeowners��insurance policies provide protection for homeowners, renters, condominium owners and residential landlords against losses arising out of damage to dwellings and contents from a variety of perils, as well as coverage for liability arising from ownership or occupancy. Other insurance includes personal excess liability (protection against losses in excess of amounts covered by other liability insurance policies), and coverage for recreational vehicles and boat owners. Most of Auto & Home�� homeowners��policies are traditional insurance policies for dwellings, providing protection for loss on a replacement cost basis. These policies also provide additional coverage for reasonable, normal living expenses incurred by policyholders that have been displaced from their homes.

International

International provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement & savings products to both individuals and groups. The Company focuses on markets primarily within Japan, Latin America, Asia Pacific, Europe and the Middle East. It operates in international markets through subsidiaries and affiliates. The Company operates in 22 countries in Latin America, with operations in Mexico, Chile and Argentina. It operates in fou! r countri! es in Asia Pacific with operations in Korea, Hong Kong and Australia. It operates in 35 countries in Europe and the Middle East with operations in Poland, the United Kingdom, France, and the United Arab Emirates, as well as through a consolidated joint venture in India.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, which is invested to optimize investment spread and to fund company initiatives and various start-up and run-off entities. Mortgage products offered by MetLife Bank include forward and reverse residential mortgage loans. Residential mortgage loans are originated through MetLife Bank�� national sales force, mortgage brokers and mortgage correspondents. The residential mortgage banking activities include the origination and servicing of mortgage loans. Mortgage loans are held-for-investment or sold primarily into Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) or Government National Mortgage Association (GNMA) securities. Deposit products include traditional savings accounts, money market savings accounts, certificates of deposit (CDs) and individual retirement accounts.

Advisors' Opinion:

• [By Ben Levisohn]

  MetLife (MET) has gained 3.1% to $48.53, while�Prudential�(PRU) has climbed 3.1% to $78.29 after Barclays upgraded the stocks to Overweight from Equal Weight Underweight. Analyst Jay Gelb and team explain why:

• [By Dan Caplinger]

  MetLife (NYSE: MET  ) will release its quarterly report on Wednesday, and shareholders couldn't be more optimistic about the company's future prospects. Yet even though the stock has traded at five-year highs recently, MetLife earnings haven't yet begun to grow in the way investors will want to see in the long run.

10 Best Insurance Stocks To Buy For 2014: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

• [By Jon C. Ogg]

  Genworth Financial Inc. (NYSE: GNW) has not paid a dividend since 2008. That may soon be about to change if an analyst call from Monday turns out to be true. UBS raised the financial services firm up to Buy from Neutral, with a focus on the dividend and return of capital.

• [By Eric Volkman]

  Genworth Financial (NYSE: GNW  ) plans to to eliminate roughly 400 positions, which includes 150 open jobs that it will not fill, the company announced Thursday.

• [By James E. Brumley]

  Never let it be said I didn't follow up on my prior ideas and commentaries. In November of last year I said MGIC Investment Corp. (NYSE:MTG), Radian Group Inc. (NYSE:RDN), and Genworth Financial Inc. (NYSE:GNW) were budding bullish idea.
  
  For those of you with good memories, you'll likely know why that sounds a little bit "off." Though GNW, MTG, and RDN had all three been quite bullish that particular day as well as flashed bursts of bullishness in the days leading up to that November 1st look, the market was still more than a little pessimistic on on insurers like Radian Group, MGIC Investment, and Genworth Financial. I'm sure glad I was willing to go out on a limb. All three stocks have gone on to make big - and surprising - gains.
  
  So do I come here to pound my chest on RDN, GNW, and MTG? Nope - not at all. I'm chiming in again today to let you know if you got in on my advice, it's now time to lock in those gains and get out.
  
  Just so there's no confusion, I don't see any particular overbearing problems hanging over the industry's head. It's just that these stocks have outlived their usefulness and opportunity for us.
  
  Take MGIC Investment Corp. for instance. MTG has advances 340% since then, yet still isn't profitable on a net trailing basis. Positive earnings are sill in the cards. But, priced at 27.6 times 2014's projected income, the value argument is gone, as well as the technical one.
  
  Ditto for Genworth Financial and Radian Group Inc. Both stocks have posted huge gains over the past ten months, and while their forward-looking ratios are more attractive, after a 118% and 200% runup, respectively - given the back stories and timing - you have to believe the best-case scenario has already been priced into RDN and GNW shares.
  
  Just for the record, I would be more than willing to buy back into any and all of these names once we get a healthy pullback and start to see decent evidence of a bullish reversal. While we

10 Best Insurance Stocks To Buy For 2014: W.R. Berkley Corporation(WRB)

W. R. Berkley Corporation, an insurance holding company, operates as commercial lines writers in the property casualty insurance business primarily in the United States. The company operates in five segments: Specialty, Regional, Alternative Markets, Reinsurance, and International. The Specialty segment underwrites third-party liability risks, primarily excess, and surplus lines, including premises operations, professional liability, commercial automobile, products liability, and property lines. The Regional segments provide commercial insurance products to small-to-mid-sized businesses, and state and local governmental entities primarily in the 45 states of the United States. The Alternative Markets segment develops, insures, reinsures, and administers self-insurance programs and other alternative risk transfer mechanisms. This segment offers its services to employers, employer groups, insurers, and alternative market funds, as well as provides a range of fee-based servic es, including consulting and administrative services. The Reinsurance segment engages in the underwriting property casualty reinsurance on a treaty and a facultative basis, including individual certificates and program facultative business; and specialty and standard reinsurance lines, and property and casualty reinsurance. The International segment offers personal and commercial property casualty insurance in South America; commercial property casualty insurance in the United Kingdom and continental Europe; and reinsurance in Australia, Southeast Asia, and Canada. The company was founded in 1967 and is based in Greenwich, Connecticut.

Advisors' Opinion:

• [By Rich Duprey]

  Insurance holding company�W.R. Berkley� (NYSE: WRB  ) �announced yesterday�its second-quarter dividend of $0.10 per share, an 11% increase over the $0.09 per share it paid last quarter.

4 Highest Yielding Stocks Mostly Picked by Stock Market Pros

Big investors are sometimes better informed about the issues of a company. They know where to find low hanging fruits and to make profits. It could make sense for us normal investors to observe the activities from the big investors in order to get a feeling about the good and bad companies, stocks that investors love and hate.

Each month, I develop a little screen about the largest stock buys from 49 super investors. I analyze how often a stock was bought over the recent six months and ranked them in my 100 best guru buy list. All super gurus combined bought 631 stocks within the recent half year; they seem to be more bullish.

In my view, it's a good tool to look at the activities of the guru investors in the market because they have huge amounts of capital and if they invest combined, they can change the market very easy. Their attitude to stocks is also lightning the way to return, not always but sometimes because the media notices the portfolio changes of the hedge fund managers and create additional publicity.

Technology is still the place to be for the investment gurus. The top three results from the guru 100 best buy list are all tech stocks: Oracle, Apple and Microsoft.

And investors bet more on dividends: Now, 80 percent of the equities they bought pay a dividend. But most of them are low yielding stocks, with around 11 stocks yielding over 3 percent. Investment gurus still look for growth and don't seek for high cash compensation.

Here are the highest yielding results:

BP (BP) has a market capitalization of $130.11 billion. The company employs 85,700 people, generates revenue of $388.285 billion and has a net income of $11.816 billion. BP's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39.891 billion. The EBITDA margin is 10.27 percent (the operating margin is 5.08 percent and the net profit margin 3.04 percent).

Financial Analysis: The total debt represents 16.26 percent of BP's assets and the total de! bt in relation to the equity amounts to 41.21 percent. Due to the financial situation, a return on equity of 10.07 percent was realized by BP. Twelve trailing months earnings per share reached a value of $8.07. Last fiscal year, BP paid $1.98 in the form of dividends to shareholders. BP shares were bought by 6 guru investors.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.12, the P/S ratio is 0.34 and the P/B ratio is finally 1.11. The dividend yield amounts to 5.23 percent and the beta ratio has a value of 1.21.

Intel (INTC) has a market capitalization of $109.50 billion. The company employs 106,000 people, generates revenue of $53.341 billion and has a net income of $11.005 billion. Intel's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.160 billion. The EBITDA margin is 41.54 percent (the operating margin is 27.44 percent and the net profit margin 20.63 percent).

Financial Analysis: The total debt represents 15.94 percent of Intel's assets and the total debt in relation to the equity amounts to 26.26 percent. Due to the financial situation, a return on equity of 22.66 percent was realized by Intel. Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, Intel paid $0.87 in the form of dividends to shareholders. INTC shares were bought by 4 guru investors.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.88, the P/S ratio is 2.05 and the P/B ratio is finally 2.12. The dividend yield amounts to 4.09 percent and the beta ratio has a value of 1.02.

Philip Morris International (PM) has a market capitalization of $135.05 billion. The company employs 87,100 people, generates revenue of $77.393 billion and has a net income of $9.154 billion. Philip Morris International's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.827 billion. The EBITDA margin is 19.16 percent (the operating margin is 17.89 percent ! and the n! et profit margin 11.83 percent).

Financial Analysis: The total debt represents 60.63 percent of Philip Morris International's assets. Twelve trailing months earnings per share reached a value of $5.16. Last fiscal year, Philip Morris International paid $3.24 in the form of dividends to shareholders. PM shares were bought by 5 guru investors.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.19, the P/S ratio is 1.75 and the P/B ratio is finally not calulable. The dividend yield amounts to 4.07 percent and the beta ratio has a value of 0.87.

Merck (MRK) has a market capitalization of $138.39 billion. The company employs 81,000 people, generates revenue of $47.267 billion and has a net income of $6.299 billion. Merck's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.343 billion. The EBITDA margin is 47.27 percent (the operating margin is 18.49 percent and the net profit margin 13.33 percent).

Financial Analysis: The total debt represents 19.38 percent of Merck's assets and the total debt in relation to the equity amounts to 38.79 percent. Due to the financial situation, a return on equity of 11.47 percent was realized by Merck. Twelve trailing months earnings per share reached a value of $1.68. Last fiscal year, Merck paid $1.68 in the form of dividends to shareholders. MRK shares were bought by 6 guru investors.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.15, the P/S ratio is 2.93 and the P/B ratio is finally 2.70. The dividend yield amounts to 3.64 percent and the beta ratio has a value of 0.58.

Take a closer look at the full table of stocks with biggest guru buys over the past six months. The average P/E ratio amounts to 18.90. Exactly 80 companies pay dividend; one High-Yield is below the results. The average dividend yield amounts to 1.73 percent. P/S ratio is 2.39 and P/B ratio 4.67.
Monthly Yield Fact Book | Yields Dividend Champions | Yields Dividen! d Contend! ers | Yields Dividend Challengers | High-Yield Large Cap | +10% Yielding Stocks |

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Top Penny Companies For 2014

Even though it is, and will probably always be, the world's largest chain of hamburger fast food restaurants in the world, the forecast for this company's growth has started to look a little bleak, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

McDonald's (MCD) customers are getting squeezed and so, therefore, is McDonald's.

For the third quarter, comparable store sales grew by just 0.7% in the United States. That's down from 1% comparable store sales growth in the second quarter. Global comparable sales climbed by 0.9%. Wall Street had been expecting 1% growth.

McDonald's did beat analyst earnings estimates of $1.52 a share by a penny, but that wasn't enough to offset a rather gloomy forecast for growth. In October, the company said it expects flat comparable store sales. The shares finished down 0.64% at the close on October 21.

In the United States, new menu items such as pumpkin-spice lattes and Mighty Wings didn't draw enough new spending to offset the company's need to focus on value pricing, as lower income customers continue to cut their spending. The problem seems to be worse, though, than at competitors. Wall Street analysts project that McDonald's will grow revenue by just 2.4% in 2013, compared to the National Restaurant Association's estimate of 4.9% growth for the US quick-service dining sector.

Top Penny Companies For 2014: Daily Journal Corp.(S.C.)

Daily Journal Corporation publishes newspapers and Web sites in California, Arizona and Colorado. It publishes 11 newspapers that include Los Angeles Daily Journal, Daily Commerce, San Francisco Daily Journal, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Sonoma County Herald-Recorder, Orange County Reporter, San Diego Commerce, Business Journal, and The Record Reporter. The company also offers California Lawyer magazine; produces various specialized information services; and serves as a newspaper representative specializing in public notice advertising. In addition, Daily Journal Corporation, through its subsidiary, Sustain Technologies, Inc., supplies case management software systems and related products to courts and other justice agencies, including administrative law organizations to help users manage electronic case files from inception to disposition, which include various aspects of calendaring and accounting, report and notice generation, the i mplementation of standards and business rules, and other corollary functions. The company was founded in 1986 and is based in Los Angeles, California.

Top Penny Companies For 2014: Grupo Radio Centro S.A. de C.V.(RC)

Grupo Radio Centro, S.A.B. de C.V., a radio broadcasting company, through its subsidiaries, engages in the production and broadcasting of music, entertainment, news, and special event programs in Mexico. The company owns and operates 15 radio stations, which comprise 5 AM and 6 FM stations in Mexico City, 2 AM stations in Guadalajara and Monterrey, and 1 FM station in Los Angeles, as well as 1 AM radio station in Mexico City that is operated and managed by a third party. It also operates Organizaci

10 Best Heal Care Stocks To Invest In 2014: YRC Worldwide Inc.(YRCW)

YRC Worldwide Inc., through its subsidiaries, provides various transportation services worldwide. The company?s YRC National Transportation unit offers a range of services for the transportation of industrial, commercial, and retail goods, such as apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2009, it had 11704 owned tractors, 1239 leased tractors, 50083 owned trailers, and 3244 leased trailers. Its YRC Regional Transportation unit?s service portfolio includes regional delivery, which comprises next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, and various specialized offerings; expedited delivery, that comprises day-definite, hour-definite, and time definite capabilities; inter-regional delivery; cross-border delivery; and operation of my.yrcregional.com and NewPenn.com, which are e-commerce Websites offering online resources to manage transportation activity. The company?s YRC Logistics units? service portfolio consists of distribution services that include flow through and pool distribution, dedicated warehousing, and value-added services; global services, which comprise international freight forwarding, customs brokerage, and value-added services; and transportation services, such as truckload brokerage, domestic freight forwarding, and transportation management. Its YRC Truckload unit provides customized truckload services on regional and national level through the use of company and team-based drivers. The company was founded in 1924 and is headquartered in Overland Park, Kansas.

Advisors' Opinion:

• [By Sean Williams]

  Even the trucking companies that have been struggling are showing signs of life. Just last week, Arkansas Best (NASDAQ: ABFS  ) announced a tentative agreement between its ABF Freight Systems subsidiary and the Teamsters union that should dramatically lower costs. Just days later, struggling trucker YRC Worldwide (NASDAQ: YRCW  ) , which also reported its first quarterly profit in six years recently, confirmed that it's offered a preliminary proposal to acquire Arkansas Best. �

Top Penny Companies For 2014: Diana Shipping inc. (DSX)

Diana Shipping Inc. provides shipping transportation services. It transports dry bulk cargoes that include commodities, such as iron ore, coal, grain, and other materials along worldwide shipping routes. As of December 31, 2010, the company?s fleet consisted of 23 dry bulk carriers, including 14 Panamax, 1 Post-Panamax, and 8 Capesize dry bulk carriers with a combined carrying capacity of approximately 2.5 million deadweight tonnage. Its customers include national, regional, and international companies. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was founded in 1999 and is based in Athens, Greece.

Advisors' Opinion:

• [By Jon C. Ogg]

  Dianna�Shipping Inc. (NYSE: DSX) was raised to Neutral from Underperform at Credit Suisse.

  Facebook Inc. (NASDAQ: FB) was started as Buy with a $50 fair value at Janney Capital.

• [By Nickey Friedman]

  Diana Shipping (NYSE: DSX  ) is pure investment in dry shipping. The company transports dry bulk cargoes worldwide, including commodities such as iron ore, coal, grain, and other materials. Analysts have yet to respond to the rate increases, but no doubt more of them will be raising their 2014 EPS estimates shortly. Diana Shipping trades around 20% below book value now; back in its heyday, it traded north of $40 per share.

Top Penny Companies For 2014: Innovaro Inc(INV)

Innovaro, Inc. provides a comprehensive portfolio of end-to-end innovation solutions primarily in the United States and the United Kingdom. It helps clients develop compelling strategies to drive and catalyze growth, source externally developed technologies, create added value from their intellectual property, and gain foresight into marketplace and technology developments that affect their business. The company operates in two segments, Strategic Services and Technology Services. The Strategic Services segment offers strategic innovation consulting; business model and product development consulting; identify and develop new segments and markets; and create and act on game-changing strategies. The Technology Services segment provides futures scenario development and planning; custom and syndicated research; online information services; IP consulting; IP and market landscape analysis; technology search; In- and out-licensing; online marketplaces; and partner search and prof iling services. Its clients include consumer goods, consumer packaged goods, retail, medical, telecommunications, chemicals, media, financial services, energy, utilities, and government agencies. The company was formerly known as UTEK Corporation and changed its name to Innovaro, Inc. in July 2010. Innovaro, Inc. is based in Tampa, Florida.

Top Penny Companies For 2014: Qualstar Corporation(QBAK)

Qualstar Corporation designs, develops, manufactures, and sells automated magnetic tape libraries used to store, retrieve, and manage electronic data primarily in network computing environments worldwide. Its tape libraries consists of cartridge tape drives, tape cartridges, and robotics to move the cartridges from their storage locations to the tape drives under software control. The tape libraries also provide data storage solutions for organizations requiring backup, recovery, and archival storage of critical electronic information. The company also offers ancillary products related to its tape libraries, such as tape media, tape magazines, cables, bar code labels, and fiber channel adapters. In addition, it designs, develops, and sells switching power supplies that are used to convert alternate current line voltage to direct current voltages for use in electronic equipment, such as telecommunications equipment, servers, routers, switches, lighting, and gaming devices. Qualstar Corporation sells its tape drive products primarily to value added resellers and original equipment manufacturers, as well as switching power supplies primarily to original equipment manufacturers, contract manufacturers, and distributors. The company was founded in 1984 and is headquartered in Simi Valley, California.

Top Penny Companies For 2014: Capital Bank Corporation(CBKN)

Capital Bank Corporation operates as the holding company for Capital Bank that provides general commercial banking products and services in North Carolina. Its deposit products include checking, savings, negotiable order of withdrawal, money market, and individual retirement accounts, as well as certificates of deposit. The company?s loan products portfolio comprises loans for real estate, construction, businesses, agriculture, personal use, home improvement, and automobiles, as well as equity lines of credit, mortgage loans, credit loans, consumer loans, and credit cards. It also offers safe deposit boxes, bank money orders, Internet banking services, traveler?s checks, and notary services, as well as electronic funds transfer services, including wire transfers and remote deposit capture. In addition, the company provides automated teller machine access to its customers; and a line of uninsured investment products and services. It operates 32 branch offices in North Carol ina, including 5 in Raleigh, 4 in Asheville, 4 in Fayetteville, 3 in Burlington, 3 in Sanford, 2 in Cary, and 1 each in Clayton, Graham, Hickory, Holly Springs, Mebane, Morrisville, Oxford, Pittsboro, Siler City, Wake Forest, and Zebulon. The company was founded in 1997 and is headquartered in Raleigh, North Carolina. Capital Bank Corporation is a subsidiary of North American Financial Holdings, Inc.

Top Penny Companies For 2014: Medallion Financial Corp.(TAXI)

Medallion Financial Corp., through its subsidiaries, operates as a specialty finance company in the United States. The company engages in originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses. It offers commercial loans to finance the purchase of the equipment and related assets necessary to open a new business, or the purchase or improvement of an existing business; asset-based loans to small businesses; and secured mezzanine loans to businesses in various industries, including manufacturing and various service providers. The company also raises deposits; originates consumer loans for the purchase of recreational vehicles, boats, motorcycles, trailers, and hearing aids; and conducts other banking activities. In addition, it provides other debt, mezzanine, and equity investment capital to companies in various industries. The company was founded in 1995 and is headquartered in New York, New York.