Best Energy Companies To Own For 2014

The surge of natural gas production in the U.S. has opened several doors that many didn't think were previously economically feasible: Manufacturers are reconsidering a move back to the U.S. for cheap energy prices, using natural gas as a transportation fuel is not a joke, and we're even debating the merits of exporting natural gas.

One thing is certain: Our ability to extract shale gas has given the U.S. a competitive advantage that could potentially hold for a decade. According to panelists at the 2013 Energy Forward conference at the University of Chicago's Booth School of Business, only China has a shot at effectively producing from shale gas in the next 10 to 15 years. Let's look at how the U.S. will keep that position for that long and one policy that will prevent others from doing the same.

Best Energy Companies To Own For 2014: Hoku Corporation(HOKU)

Hoku Corporation operates as a solar energy products and services company primarily in the United States. It focuses on manufacturing polysilicon, a primary material used in the manufacture of photovoltaic (PV) modules; and designing, engineering, and installing turnkey PV systems and related services in Hawaii using solar modules purchased from third-party suppliers. The company was formerly known as Hoku Scientific, Inc. and changed its name to Hoku Corporation in March 2010. Hoku Corporation was incorporated in 2001 and is headquartered in Honolulu, Hawaii.

Advisors' Opinion:

• [By Chuck]

  Hoku Corp.(NASDAQ: HOKU) closing price in the stock market Tuesday, Jan. 3, was $0.5501. HOKU is trading -32.79% below its 50 day moving average and -61.84% below its 200 day moving average. HOKU is -80.90% below its 52-week high of $3.24 and 10.02% above its 52-week low of $0.50. HOKU‘s PE ratio is N/A and its market cap is $30.21M.

  Hoku Corp. operates as a solar energy products and services company primarily in the United States. HOKU focuses on manufacturing polysilicon, a primary material used in the manufacture of photovoltaic (PV) modules; and designing, engineering, and installing turnkey PV systems and related services in Hawaii using solar modules purchased from third-party suppliers.

Best Energy Companies To Own For 2014: First Solar Inc.(FSLR)

First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. It also designs, constructs, and sells photovoltaic solar power systems. The company?s solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. Its integrated solar power systems activities include the project development; engineering, procurement, and construction services; operating and maintenance services; and project finance. The company sells solar modules to project developers, system integrators, and operators of renewable energy projects; and solar power systems to investor owned utilities, independent power developers and producers, and commercial and industrial companies, as well as other system owners. It operates in the United States, Germany, France, Canada, and internationally. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar was founded in 1999 a nd is headquartered in Tempe, Arizona.

Advisors' Opinion:

• [By Nelson]

  First Solar, Inc.(NASDAQ: FSLR) closing price in the stock market Tuesday, Jan. 3, was $35.79. FSLR is trading -11.87% below its 50 day moving average and -54.60% below its 200 day moving average. FSLR is -79.60% below its 52-week high of $175.45 and 19.82% above its 52-week low of $29.87. FSLR‘s PE ratio is 5.80 and its market cap is $3.09B.

  First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. It also designs, constructs, and sells photovoltaic solar power systems. FSLR’s solar modules employ a thin layer of semiconductor material to convert sunlight into electricity. FSLR was recently headlined when Billionaire Investor Warren Buffett became a largely vested shareholder in them.

• [By Chuck]

  First Solar (FSLR) has been picked by J.P. Morgan as the worst company in this sector and it is recommended that stocks be sold in the short run. With the reduction in subsidies, First Solar is likely to see a reduction in the sale of modules (which constitutes the largest part of its revenue). Operating margins are expected to be lower than expectations due to lower module margins. The stock is currently trading at $46.11 and is expected to go south of $4 0. Earnings per share of $7.71 are expected to decrease to $5.13 by the end of 2012. The company has market capitalization of $3.99 billion.

• [By Hawkinvest]

  First Solar (FSLR) is a U.S.-based solar company that was once the darling of Wall Street. A couple of years ago, this stock traded for over $250 per share, but due to challenging business conditions and a change in investor psychology, the stock now trades below book value, which is $46.61 per share. There is still plenty to like with this company. It has a technological edge over other companies, a strong balance sheet, and it is one of the few solar firms that have been able to remain solidly profitable during an extremely difficult period for the industry.

  First Solar expects revenues to range from $3.7 to $4.0 billion, and earnings to come in somewhere between $3.75 to $4.25 per share for 2012. The company is expected to report fourth quarter earnings on February 28, 2012, so it could make sense to wait for a financial update before making a large investment. However, the stock is trading below book value, and for less than 10 times earnings. Investors who like buying low should consider this industry leader, while the stock is still trading at depressed levels.

• [By Cutler]

  First Solar (FSLR) is a leading manufacturer of solar power modules, boasting great growth of both revenues and earnings … and profit margins of 27% in the latest quarter, very impressive for a manufacturer. The stock was a big winner for Cabot Market Letter in 2006 (we sold in March 2007) and like most stocks in the industry it’s spent the time since then cooling off. I think it’s cool enough now. First Solar was on the list three years ago, too.

Hot Financial Companies To Own For 2014: EXCO Resources NL(XCO)

EXCO Resources, Inc., an independent oil and natural gas company, engages in the exploration, exploitation, development, and production of onshore North American oil and natural gas properties with a focus on shale resource plays. The company holds interests in various projects located in East Texas, North Louisiana, Appalachia, and the Permian Basin in west Texas. As of December 31, 2010, it had proved reserves of approximately 1.5 trillion cubic feet equivalent; and operated 7,276 wells. The company was founded in 1955 and is based in Dallas, Texas.

Advisors' Opinion:

• [By Quickel]

  Exco Resources, Inc. (XCO) is trading around $10.70. Exco is an onshore North American oil and natural gas company, and is based in New York. These shares have traded in a range between $9.33 to $21.04 in th e last 52 weeks. XCO is estimated to earn about 78 cents per share in 2011. XCO pays a dividend of 16 cents per share which is equivalent to a 1.5% yield. The book value is stated at $7.69. In 2011, Barclays Capital set a price target of $23 per share for XCO.

Best Energy Companies To Own For 2014: China Petroleum & Chemical Corporation(SNP)

China Petroleum & Chemical Corporation engages in the exploration, development, production, and marketing of crude oil and natural gas properties primarily in China. It operates 16 oil and gas production fields in China. As of December 31, 2010, the company?s estimated proved reserves of crude oil and natural gas consisted of 3,963 million barrels-of-oil equivalent comprising 2,888 million barrels of crude oil and 6,447 billion cubic feet of natural gas. It also engages in the refining of crude oil; marketing and distribution of refined petroleum products; and production and sale of petrochemical products that consist of intermediate petrochemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers, as well as owns and operates oil depots and service stations. The company was founded in 2000 and is based in Beijing, the People?s Republic of China. China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.

Advisors' Opinion:

• [By Dave Friedman]

  Institutional investors bought 5,494,530 shares and sold 2,172,970 shares, for a net of 3,321,560 shares. This net represents 0.00% of common shares outstanding. The number of shares outstanding is 86,702,513,470. The shares recently traded at $91.14 and the company’s market capitalization is $95,379,393,775.12. About the company: China Petroleum and Chemical Corporation (Sinopec) refines, produces and trades petroleum and petrochemical products such as gasoline, diesel, jet fuel, kerosene, ethylene, synthetic fibers, synthetic rubber, synthetic resins, and chemical fertilizers. Also, The company explores for and produces crude oil and natural gas in China.

Best Wireless Telecom Stocks To Buy Right Now

LONDON -- The last 12 months have been huge for bookmaker�William Hill� (LSE: WMH  ) . The company has undergone one fundraising, made two large acquisitions, and seen its share price increase by more than 50%.

The biggest issue affecting bookmakers is not who wins the 2:30 at Haydock but how governments worldwide will regulate gambling. While operating in an unregulated market may be highly profitable, the market usually awards a very low value to such earnings.

The other story in the industry is the massive change away from traditional high-street betting to online, mobile, and in-play products.

Recent moves at William Hill mean that the company is now in a far stronger position.

The 460 million pound acquisition in March of Sportingbet's Spanish and Australian operations brought new, regulated operations into William Hill. This was followed by the 429 million pound acquisition of the minority stake in William Hill Online. The company now has full control of its online offering.

Best Wireless Telecom Stocks To Buy Right Now: ExlService Holdings Inc.(EXLS)

Exlservice Holdings, Inc., together with its subsidiaries, provides outsourcing and transformation services primarily in the United States and the United Kingdom. Its outsourcing services include claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business processing, policy servicing, trades/sub-account transactions, add-on processing, premium audit, billing and collection, and customer services in insurance and healthcare sector; back-office processing for customer operations, metering-related services and billing, debt recovery operations, imbalance management, and account management services in utilities sector; and servicing and processing various banking products, including residential mortgage lending, retail banking, credit cards, consumer finance, commercial lending, and investment management in banking and financial services sector. The company?s outsourcing services also co mprise processing transactions, including supply chain management, warehousing, transloading, transportation management, and international logistics services in transportation and logistics sector; managing and improving operational, financial, and analytical functions for travel management companies; and finance and accounting services, including accounts payable, accounts receivable, inter-company reconciliations, financial and statutory reporting, treasury management, and tax compliance. In addition, it offers transformation services consisting of decision analytics services, including data filtering, organization and synthesis, management information system reporting, trend and variance analysis, statistical and econometric modeling, and economic and financial markets research; finance transformation services; and operations and process excellence services. The company was founded in 1999 and is headquartered in New York, New York.

Best Wireless Telecom Stocks To Buy Right Now: Penson Worldwide Inc.(PNSN)

Penson Worldwide, Inc., through its subsidiaries, provides various critical securities and futures processing infrastructure products and services to the financial services industry. Its products and services include securities and futures clearing and execution, clearing and custody services, trade settlement, technology services, risk management services, and customer account processing and customized data processing services, as well as financing and cash management technology and other related products. The company also participates in margin lending, securities borrowing, and lending transactions, primarily to facilitate clearing and financing activities, as well as provides tools and services to support trading in multiple markets, asset classes, and currencies. In addition, it offers Internet account portfolio information, holding and safeguarding securities and cash deposits, securities lending and borrowing, proprietary trading, futures products, and institutional and active retail front-end trading software products and services, as well as technology and data product offerings, including customizable front-end trading platforms, options and futures trade data, and order-management services. It serves online, direct access, and traditional retail brokers, as well as banks, institutional brokers, financial technology companies, and securities exchanges in the United States, Canada, Europe, and Asia. The company?s securities and futures processing infrastructure products and services are marketed principally under the Penson name. Penson Worldwide, Inc. was founded in 1995 and is headquartered in Dallas, Texas.

Top 5 Wireless Telecom Stocks To Buy For 2014: The Andersons Inc.(ANDE)

The Andersons, Inc. engages in the grain, ethanol, plant nutrient, railcar leasing and repair, turf products production, and general merchandise retailing businesses. It operates in six segments: Grain, Ethanol, Rail, Plant Nutrient, Turf & Specialty, and Retail. The Grain segment operates grain elevators; and is involved in the storage, merchandising, and trading of grains, as well as offers marketing, risk management, and corn origination services to its customers. The Ethanol segment operates three ethanol production facilities; and provides facility operations, risk management, and ethanol and distillers dried grains marketing to the ethanol plants. The Rail segment buys, sells, leases, rebuilds, and repairs a fleet of approximately 23,000 railcars and locomotives; offers fleet management services to private railcar owners; engages in metal fabrication business; and invests in short-line railroad. The Plant Nutrient segment manufactures, distributes, and retails dry an d liquid agricultural nutrients, and pelleted lime and gypsum products to agricultural farm supply dealers; and essential crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. This segment also offers warehousing, packaging, and manufacturing services to manufacturers and other distributors; and various industrial products, including nitrogen reagents for air pollution control systems. The Turf & Specialty segment produces granular fertilizer and control products for the turf and ornamental markets; and fertilizer and control products, and corncob-based animal bedding and cat litter for the consumer markets. The Retail segment operates The Andersons retail stores; The Andersons Market, a specialty food market; a distribution center; and a lawn and garden equipment sales and service shop. The Andersons, Inc. was founded in 1947 and is headquartered in Maumee, Ohio.

GM Tries Again to Catch Ford's Fusion

Top New Companies To Watch For 2014

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. Cool beans
Amazon.com (NASDAQ: AMZN  ) is a distant second when it comes to video-streaming smorgasbords, but the leading online retailer isn't afraid to bid up exclusive content.

Amazon has a deal in place with NBC for Amazon Prime members to stream some of the network's most recent shows -- Grimm, Suits, Covert Affairs, Hannibal, and Defiance -- on an exclusive basis.

In another smart move, Amazon jumped into the virtual currency market by giving Kindle Fire 500 coins for free. Amazon Coins can be used for apps and games, with Amazon keeping nearly a third of the revenue. This isn't an easy market to crack, but the e-tailer is smart for handing out $5 worth of the new currency to tablet owners who are already familiar with Amazon's digital ecosystem. Educating the consumer and encouraging them to lean on Amazon Coins for future virtual purchases sometimes needs that little push to get it going.

Top New Companies To Watch For 2014: EverBank Financial Corp (EVER.N)

EverBank Financial Corp, incorporated in 2004, is an unitary savings and loan holding company. The Company provides a range of financial products and services directly to customers through multiple business channels. Its operating subsidiary is EverBank. As of December 31, 2011, EverBank had $ 10.3 billion deposits. EverBank offers a range of banking, lending and investing products to consumers and businesses. EverBank provides services to customers through Websites, over the phone, through the mail and at 14 Florida-based Financial Centers. The Company operates in two operating business segments: Banking and Wealth Management, and Mortgage Banking. Its Banking and Wealth Management segment includes earnings generated by and activities related to deposit and investment products and services and portfolio lending and leasing activities. Its Mortgage Banking segment consists of activities related to the origination and servicing of residential mortgage loans. In April 201 2, the Company acquired MetLife Bank�� warehouse finance business. In October 2012, it acquired Business Property Lending, Inc.

Asset Origination and Fee Income Businesses

The Company has a range of asset origination and fee income businesses. The Company generates generate fee income from its mortgage banking activities, which consist of originating and servicing one-to-four family residential mortgage loans. It originates prime residential mortgage loans using a centrally controlled underwriting, processing and fulfillment infrastructure through financial intermediaries (including community banks, credit unions, mortgage bankers and brokers), consumer direct channels and financial centers. Its mortgage origination activities include originating, underwriting, closing, warehousing and selling to investors prime conforming and jumbo residential mortgage loans. From its mortgage origination activities, it earns fee-based income on fees charged to b orrowers and other noninterest income from gains on sales ! fr! om mortgage loans and servicing rights. During the year ended December 31, 2011, it originated six billion dollars of residential loans. It generates mortgage servicing business through the retention of servicing from its origination activities, acquisition of bulk mortgage servicing rights (MSR) and related servicing activities.

The Company�� mortgage servicing business includes collecting loan payments, remitting principal and interest payments to investors, managing escrow funds for the payment of mortgage-related expenses, such as taxes and insurance, responding to customer inquiries, counseling delinquent mortgagors, supervising foreclosures and liquidations of foreclosure properties and otherwise administering its mortgage loan servicing portfolio. It earns mortgage servicing fees and other ancillary fee-based income in connection with these activities. It services a portfolio by both product and investor, including agency and private pools of mortgages secured by properties throughout the United States. As of December 31, 2011, its mortgage servicing business, which services mortgage loans for itself and others, managed loan servicing administrative functions for loans with unpaid principal balance (UPB) of $54.8 billion.

The Company originates originate equipment leases nationwide through relationships with approximately 280 equipment vendors with networks of creditworthy borrowers and provide asset-backed loan facilities to other leasing companies. Its equipment leases and loans finance essential-use health care, office product, technology and other equipment. Its commercial financings range from approximately $25,000 to $1.0 million per transaction, with typical lease terms ranging from 36 to 60 months. Its commercial finance activities provide it with access to approximately 25,000 small business customers nationwide, which creates opportunities to cross-sell its deposit, lending and wealth management pro ducts. It focuses to offer warehouse loans, which are s! hort-! te! rm revo! lving facilities, primarily securitized by agency and government collateral. It provides financial advisory, planning, brokerage, trust and other wealth management services to its mass-affluent and high-net-worth customers through its registered broker dealer and recently-formed registered investment advisor subsidiaries.

Interest-Earning Asset Portfolio

As of December 31, 2011, the Company�� interest-earning assets were $11.7 billion. As of December 31, 2011, its loan and lease held for investment portfolio was $6.5 billion. As of December 31, 2011, the carrying values of its interest-earning assets are: residential, government-insured (residential), securities, commercial and commercial real estate, Bank of Florida (covered), lease financing receivables, and other.

Residential includes primarily prime loans originated and retained from its mortgage banking activities, acquired from third parties or held for sale to other investors. government-insured (residential) includes Government National Mortgage Association (GNMA) pool buyouts with government insurance, sourced from its mortgage banking segment and third-party sources. Securities include non-agency residential mortgage-backed securities (MBS) and collateralized mortgage obligation (CMO) purchased at significant discounts. This portfolio includes protection against credit losses from purchase discounts, subordination in the securities structures and borrower equity. Commercial and commercial real estate includes a range of commercial loans, including owner-occupied commercial real estate, commercial investment property and small business commercial loans. As of December 31, 2011, Bank of Florida (Covered) includes commercial, multi-family and commercial real estate loans with $71.3 million of purchase discounts. Lease financing receivables include covered lease financing receivables. As of December 31, 2011, the lease portfolio had $64.7 million of total discounts. Other includes home equity loan! s and lin! ! es of cre! dit, consumer and credit card loans and other investments.

Deposit Generation

As of December 31, 2011, the Company had approximately $10.3 billion in deposits. Its market-based deposit products, consisting of its WorldCurrency, MarketSafe and EverBank Metals Select products, provide investment capabilities for customers seeking portfolio diversification with respect to foreign currencies, commodities and other indices. Its financial portal includes online bill-pay, account aggregation, direct deposit, single sign-on for all customer accounts and other features. Its Website and mobile device applications provide information on its product offerings, financial tools and calculators, newsletters, financial reporting services and other applications for customers to interact with it and manages all of their EverBank accounts on a single integrated platform. Its new mobile applications allow customers using iPhone, iPad, Android and Blackberry devices to view account balances, conduct real time balance transfers between EverBank accounts, administer billpay, review account activity detail and remotely deposit checks.

The Company generates deposit customer relationships through its consumer direct, financial center and financial intermediary distribution channels. Its consumer direct channel includes Internet, e-mail, telephone and mobile device access to product and customer support offerings. Its direct distribution with a network of 14 financial centers in Florida metropolitan areas, include Jacksonville, Naples, Ft. Myers, Miami, Ft. Lauderdale, Tampa Bay and Clearwater. As of December 31, 2011, its financial centers had average deposits of $130.5 million, which is approximately double the industry average. In addition, it generates noninterest-bearing escrow deposits from its mortgage servicing business.

Top New Companies To Watch For 2014: Vringo Inc. (VRNG)

Vringo, Inc., together with its subsidiaries, engages in the innovation, development, and monetization of mobile technologies and intellectual property. Its intellectual property portfolio consists of approximately 500 patents and patent applications covering telecom infrastructure, Internet search, and mobile technologies. The company operates a platform for the distribution of mobile social applications and services, including Facetones and Video Ringtones that transform the basic act of making and receiving mobile phone calls into a visual, social experience. Its Video Ringtones platform allows users to create, download, and share mobile entertainment content in the form of video ringtones for mobile phones; and Facetones is a social ringtone platform that allows users to create social picture ringtone and ringback content in the form of animated slideshows sourced from friends� social networks. The company also provides Fan Loyalty platform that allows users to obtain video and video ringtones, view information on reality television series and stars, and vote for contestants; and Video ReMix platform, which allows users to download an application for iPhone, iPad, iPod, or Android phones, and create their own music video by tapping on various music beats and video files. Vringo, Inc. is headquartered in New York, New York.

Top Information Technology Stocks For 2014: Trustmark Corporation(TRMK)

Trustmark Corporation operates as the bank holding company for Trustmark National Bank, which provides banking and financial solutions to individuals and corporate institutions in Florida, Mississippi, Tennessee, and Texas. It operates in three segments: General Banking, Insurance, and Wealth Management. The General Banking segment provides commercial and consumer banking products and services, including checking accounts, savings programs, overdraft facilities, commercial loans, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, and safe deposit facilities. The Insurance segment provides retail insurance products, including commercial risk management products, bonding, group benefits, and personal lines coverage. The Wealth Management segment offers private banking, money management, full-service brokerage, financial planning, personal and institutional trust, and retirement services, as well as life insurance an d risk management services. This segment also acts as an agent to provide life, long-term care, and disability insurance services for wealth management customers. The company operates 140 full-service branches, 17 limited-service branches, 1 in-store branch, and an ATM network with 132 ATMs at on-premise locations and 67 ATMs located at off-premise sites. Trustmark Corporation was founded in 1889 and is headquartered in Jackson, Mississippi.

A Failure To Act: Fed Policy And Interest Rates

Is the Fed responsible for the pernicious low-interest rate environment? Yes, but not for the reasons you think. I explained why in a new National Review article:

While this absolves the Fed of direct responsibility for the low-interest-rate environment, it does not absolve it for its indirect influence. Through its control of the monetary base, the Fed can shape expectations of the future path of current-dollar or nominal spending. Thus, for every spike in broad money demand, the Fed could have responded in a systematic manner to prevent the spike from depressing both spending and interest rates. In other words, the Fed could have adopted a monetary-policy rule that would have committed it to maintaining stable growth of total-dollar spending no matter what happened to money demand. A promise from the Fed to do “whatever it takes” to maintain stable nominal-spending growth would have done much by itself to prevent the money-demand spikes from emerging at all. Why hold a greater number of safe, liquid assets if you believe the Fed will keep the dollar value of the economy stable?

[...]

The Fed’s failure to adopt something like a nominal-GDP target in 2008 meant that the central bank would not be able to adequately respond to the subsequent money-demand shocks that arose over the next four years. That is, the Fed’s inaction allowed the pernicious low-interest-rate environment to develop. So while the Fed did not directly cause the low-interest-rate environment, our central bank allowed it and all of its associated problems to emerge. For that it should be blamed.

Readers of my blog will be familiar with this argument (e.g. see here, here, and here). Here are some figures that corroborate the points made in my article. First, the figure below shows the Fed's share of treasuries over the past twelve years. It has been overall relatively stable around 15%. Observers who blame the Fed for pushing down treasury yields, though, often note the Fed's ! relatively large share of treasury purchases in 2011. What they ignore is the Fed also sold a similar proportion in 2007-2008. By their logic the Fed should have caused treasury yields to rise during this time. But this period is when the long decline in treasury yields actually begins.

When confronted with this fact, some of these critics will then point to long-term treasury yields and say the market is "front-running" the Fed stated plans to buy long-term treasuries. But if that is the explanation for the falling long-term yields then this next figure should not be possible. It shows the Fed's treasury holdings were relatively stable between the end of QE2 in mid-2011 and the beginning of QE3 in late 2012. It also shows that real interest rates on 10-year treasuries continued to fall. There was no front-running during this time since there were no QE programs. There were, however, ongoing global economic problems that can explain the decline.

(click to enlarge)

Finally, it is worth pointing out that as the U.S. economic recovery has begun to appear more firm, long-term treasury rates have also started to gradually rise. The Fed has not changed its pace, but yields are now rising. The easiest explanation is that the long-term yields are directly reflecting the expected state of the economy. Indirectly, though, the rising yields can be traced in part to the Fed actions which under QE3 has become more closely to tied to the state of the economy. Too bad it took the Fed almost four years to get here.

This Tech Stock Needs a Revamped Mobile OS

Why the Dow Is Reclaiming Yesterday's Lost Ground

After falling nearly 100 points for no apparent reason yesterday, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is currently retaking most of the lost ground despite worse-than-expected weekly jobless claims and a disappointing first-quarter GDP estimate. With about an hour left in the trading session, the blue-chip index is up by 90 points, or 0.59%.

Investors were reminded this morning that while the unemployment situation is improving, it's doing so in fits and starts. According to data released by the Department of Labor today, the number of Americans filing for unemployment insurance increased last week by 10,000 to 354,000. On the face of it, this is unquestionably bad news. At the same time, however, given that it only covers a one-week time period, its susceptibility to variation is high.

Also out today were revised figures on the nation's first-quarter GDP. For the three months ended March 31, the Bureau of Economic Analysis estimates that domestic output expanded at an annualized rate of 2.4%. While this was lower than the BEA's previous estimate of 2.5% and also came up slightly short of the consensus forecast, there were a number of positive signs. Among others, both consumer spending and international trade are headed in the right direction, offset in part by a reduction in government expenditures.

In terms of individual stocks, the Dow is being led this afternoon by Bank of America (NYSE: BAC  ) , which is up by 3.2% at the time of writing. Its larger rival JPMorgan Chase (NYSE: JPM  ) isn't far behind, with shares up 2.2%.

The performance of both banks is likely a function of two things. In the first case, the National Association of Realtors reported this morning that pending home sales increased last month by 0.3% compared to March and 10.3% on a year-over-year basis. And in the second case, data from Freddie Mac showed that mortgage rates, which both of these banks rely on to fuel their bottom lines, are ascending as well. The rate on a 30-year fixed-rate conventional mortgage for the current week came in at 3.81%, or 22 basis points higher than last week.

Headed lower, alternatively, are shares of Disney (NYSE: DIS  ) , down by 1.6% in mid-afternoon trading. The entertainment company has been in the spotlight of late after reporting that it will lay off hundreds of employees from its highly profitable ESPN division. The move is in line with other companies seeking to boost their bottom lines despite tepid revenue growth. What's of particular concern to Disney investors, however, is the possibility that new competition will enter the market and further pressure margins. Among others, News Corp's Fox network is purportedly slated to enter the field in the not-too-distant future.

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Why Apple Is Still One of the Best Buys in Tech Today

Why Dangdang Shares Jumped

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

What: Shares of Dangdang (NYSE: DANG  ) have jumped by as much as 18% today following two analyst upgrades.

So what: BOC International boosted its rating from "hold" to "buy" while Morgan Stanley upgraded Dangdang from "equal weight" to "overweight." Morgan Stanley analyst Philip Wan expressed confidence that the company's margins are improving, and raised the firm's price target from $5 to $6.50.

Now what: Wan cites improving scale in the self-procurement business, among other things, and expects margins to continue improving if Dangdang continues to execute. The analyst notes that Dangdang's first-quarter results (reported last week) were ahead of his estimates, thanks to better sales mix and increased operating leverage. The $0.15-per-share loss it posted was better than the $0.19-per-share loss that the Street was expecting.

Interested in more info on Dangdang? Add it to your watchlist by clicking here.

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

Best Telecom Companies To Watch In Right Now

LONDON -- After offering my�pick of our telecom companies�last week, today I'm turning my attention to the FTSE 100 Pharmaceuticals and Biotechnology sector. This time there are three companies that make the top flight --�GlaxoSmithKline� (LSE: GSK  ) (NYSE: GSK  ) ,�AstraZeneca� (LSE: AZN  ) (NYSE: AZN  ) and�Shire� (LSE: SHP  ) .

I'll start with a few fundamentals:

Company GlaxoSmithKline AstraZeneca Shire

Market cap	76.9 billion pounds	41.5�billion pounds	10.9�billion pounds
Share price	1,576 pence	3,308�pence	1,992�pence
Share price growth	13%	19%	-1.3%
Historic EPS growth	-1%	-12%	-14%
Forward EPS growth	2%	-18%	68%
Historic P/E	11.8	7.0	21.6
Forward P/E	13.5	9.6	13.3
Historic Dividend	5.5%	6.3%	0.6%
Historic Cover	1.5x	2.3x	7.7x
Forward Dividend	5.1%	5.5%	0.6%
Forward Cover	1.5x	1.9x	11.8x

Share price growth is over the past 12 months, historic figures are for December 2012, forward figures are based on December 2013 forecasts.

Best Telecom Companies To Watch In Right Now: United States Cellular Corporation(USM)

United States Cellular Corporation operates as a wireless telecommunications service provider in the United States. The company offers wireless voice and data services to retail consumer and business customers. It provides wireless services in postpaid service plans with voice, messaging, and data services; and prepaid service plans with minutes, messaging, and data services for a monthly fee. The company also offers various additional features, including caller ID blocking, call forwarding, voicemail, call waiting, and three-way calling; and data usage features consisting of Web browsing, email services, instant messaging, text messaging, and picture and video messaging. As of December 31, 2010, it provided wireless voice and data services to 6.1 million customers in 26 states. In addition, the company operates retail stores that sell a range of wireless devices, including handsets, modems, and tablets, as well as accessories, such as carrying cases, hands-free devices, b atteries, battery chargers, memory cards, and other items to consumers and small businesses. Further, it sells wireless devices to agents and other third-party distributors for resale; operates service facilities that provide servicing and repair for wireless devices; and enables customers to activate service and purchase wireless devices online. The company?s business customers include small-to-mid-size businesses in various industries, including construction, retail, professional services, and real estate. It offers its products and services through retail sales and service centers, direct sales, and independent agents. The company was founded in 1983 and is based in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

Best Telecom Companies To Watch In Right Now: Partner Communications Company Ltd.(PTNR)

Partner Communications Company Ltd. provides various telecommunications services in Israel. It offers cellular telephony services on GSM/GPRS and UMTS/HSDPA networks. The company also provides basic services, including domestic mobile calls, international dialing, roaming, voice mail, short message services, intelligent network services, content based on its cellular portal, data and fax transmission, and other services. In addition, it offers Internet services provider services that provides access to the Internet, as well as home WiFi networks; value added services, such as anti-virus and anti-spam filtering; and transmission services; and Web video on demand services, music tracks, and games. Further, the company provides voice over broadband and primary rate interface fixed-line telephone services; and data capacity services. Additionally, it offers content services comprising voice mail, text, and multimedia messaging, as well as downloadable wireless data application s, including ring tones, music, games, and other informational content; and sells handsets, phones, routers, and related equipment. The company markets its products through its sales centers, business sales representatives, traditional networks of specialized dealers, and non-traditional networks of retail chains and stores under the Orange brand name. Partner Communications Company Ltd. was founded in 1997 and is headquartered in Rosh Ha-ayin, Israel.

Advisors' Opinion:

• [By Chris Stuart]

  Partner Communications(PTNR) is Israel's second-largest wireless operator, but is facing fierce competition in the industry. Recent regulatory changes in the cellular market are also a major headwind for the company. The government has implemented a massive 76% cut in interconnection fees (the charges by mobile-phone operators when connecting users between networks) and lower exit penalties. The company has warned that free cash flow will likely be significantly hurt over coming quarters.

  So what's there to like here? Israeli analysts at Bank Leumi believe the selloff has been overdone, saying "the market has overshot to the downside by pricing in an unreasonably pessimistic outcome to the changes in the industry."

  The stock currently pays a 7.3% dividend, but that could change, given the downward pressure on cash flow. Consider this a high-risk, high-reward investment. TheStreet Ratings has a $19 price target on Partner Communications.

• [By Kevin1977]

  Partner Communications Company is a mobile phone operator in Israel and its GSM network covers over 98% of Israel's population. It has also diversified its services to offer roaming, voice mail, voice messaging, color picture messaging, ringtone and game downloads, information services, and general packet radio services (GPRS) to customers as well as smartphones that run on its 3G network. Its stock is currently trading at 8.86 times earnings and sports a trendy 11.47% dividend yield. The company has a market cap of $2.96 billion & its shares are traded as American depositary receipt (ADR) on the Nasdaq stock exchange.

Top 10 Tech Companies For 2014: CalAmp Corp (CAMP)

CalAmp Corp. (CalAmp) develops and markets wireless technology solutions that deliver data, voice and video for critical networked communications and other applications. The Company has two business segments: Wireless DataCom, which serves commercial, industrial and government customers, and Satellite, which focuses on the North American Direct Broadcast Satellite (DBS) market. In May 2012, CalAmp Corp announced that it has entered into a five-year supply agreement to provide fleet tracking products to Navman Wireless. As part of the transaction, CalAmp has acquired certain products and technologies from Navman Wireless and established a research and development center in Auckland, New Zealand. The assets acquired by CalAmp include technology for Mobile Display Terminals (MDT) and an MDT product line marketed to telematics original equipment manufacturers (OEMs) globally. In March 2013, it completed the acquisition of the operations of Wireless Matrix Corporation.

Wireless DataCom

The Wireless DataCom segment provides wireless technology, products and services for industrial Machine-to-Machine (M2M) and Mobile Resource Management (MRM) market segments for a range of applications, including optimizing and automating electricity distribution and ancillary utility functions; facilitating communication and coordination among emergency first-responders; increasing productivity and optimizing activities of mobile workforces; improving management control over valuable remote and mobile assets, and enabling emerging applications in a wirelessly connected world.

The Company's Wireless DataCom segment is comprised of a Wireless Networks business and an MRM business. CalAmp's Wireless Networks business provides products, systems and services to industrial, utility, energy and transportation enterprises and state and local governmental entities for deployment where the ability to communicate with mobile personnel or to command and control remote assets is crucial. Utilities! , oil and gas, mining, railroad and security companies rely on CalAmp products for wireless data communications to and from outlying locations, permitting real-time monitoring, activation and control of remote equipment. Applications include remotely measuring freshwater and wastewater flows, pipeline flow monitoring for oil and gas transport, automated utility meter reading, remote Internet access and perimeter monitoring. CalAmp is among the leaders in the application of wireless communications technology to Smart Grid power distribution automation for electric utilities.

MRM wireless solutions include global positioning system (GPS) location, cellular data modems and programmable events-based notification firmware as key components, allowing customers to know where and how their assets are performing, no matter where those mobile assets are located. Commercial organizations, vehicle finance providers, city and county governments, and a range of other enterprises rely on CalAmp products and systems to optimize delivery of services and protect valuable assets. Applications include fleet management, asset tracking, student and school bus tracking and route optimization, stolen vehicle recovery, remote asset security, remote vehicle start, and machine-to-machine communications. In addition to functioning as an OEM supplier of location and communications hardware for MRM applications, CalAmp is a total solutions provider of turn-key systems incorporating location and communications hardware, cellular airtime and Web-based remote asset management tools and interfaces.

The Company competes with Motorola Solutions, GE-MDS, Freewave, Sierra Wireless, GenX, Spireon, Novatel Wireless-Enfora and Xirgo.

Satellite

The Satellite segment develops, manufactures and sells DBS outdoor customer premise equipment and whole home video networking devices for digital and high definition satellite television (TV) reception. CalAmp's satellite products are sold primarily to ! EchoStar,! an affiliate of Dish Network.

The Company's DBS reception products are installed at subscriber premises to receive television programming signals transmitted from orbiting satellites. These DBS reception products consist principally of outdoor electronics that receive, process, amplify and switch satellite television signals for distribution over coaxial cable to multiple set-top boxes inside the home that can acquire, recognize and process the signal to create a picture.

The Company competes with Sharp, Wistron NeWeb Corporation, Microelectronics Technology, Pro Brand and Global Invacom.

Best Telecom Companies To Watch In Right Now: Verizon Communications Inc.(VZ)

Verizon Communications Inc. provides communication services. The company operates through two segments, Domestic Wireless and Wireline. The Domestic Wireless segment offers wireless voice and data services; and sells equipment in the United States. The Wireline segment provides voice, Internet access, broadband video and data, Internet protocol network, network access, long distance, and other services in the United States and internationally. The company serves consumer, business, and government customers, as well as carriers. As of December 31, 2010, its network covered a population of approximately 292 million and provided service to a customer base of approximately 94.1 million. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is based in New York, New York.

Advisors' Opinion:

• [By Jim Cramer,TheStreet]

  This is the year for Verizon Communications (VZ). The iPhone is coming in the first quarter, which will lead to a growth spurt.

  The FIOS buildout is largely paid for, and now the company can reap the benefits. The company's half-owned portion of Verizon Wireless will be paying hefty dividends in 2011, and I think we will get a nice dividend boost.

  We're talking about $40 being reasonable, if conservative, giving this stock one of the best risk-reward profiles we've got in the Dow, or the S&P 500, for that matter.

  CEO Ivan Seidenberg has done a remarkable job turning this staid company into a growth vehicle with a nice dividend. It will be a core holding for many mutual funds.

• [By Brian Gorban]

   Telecommunications giants Verizon (NYSE: VZ) and AT&T (NYSE: T) are ubiquitous and very well-respected companies that benefit from some compelling competitive advantages. Having well over $110 billion in annual revenue allows both of these firms to benefit from economies of scale, much like Coca-Cola,  while each have well over 100 million wireless subscribers giving them a huge advantage of their distant number three competitor, Sprint, which has approximately 55 million. Perhaps most importantly, management has been very kind in rewarding shareholders through billions in share buybacks and current dividend yields at approximately 5%, well ahead of the average  2% Fortune 500 company. Moreover, with the Nokia Lumia 920 smartphone being received comparatively well by the general public and helping improve margins for both companies as these have less costly subsidies than the more expensive Apple iPhone, expect earnings to improve further in the upcoming quarter. Both of these companies are sitting approximately 10% from their highs, while their fundamentals have only improved, so I think these are two solid dividend companies for the long-term income investor to consider adding to their portfolio.

  I’d like to also say I appreciate you reading my thoughts and reiterate that these are just the views of the blogger and should not serve as a substitute for any professional financial advice or counsel in general. Respectful comments and questions are always welcome below on the comment board.

Nike Stock Is Back in Fashion

Fashion and retail are notoriously hard businesses to gain a stable competitive advantage in, but Nike (NYSE: NKE  ) has managed to do just that over the past three decades. Since the mid-'80s, Nike has wildly outperformed the S&P 500 on its way to becoming a iconic global brand.

NKE Total Return Price data by YCharts.

But success comes with a target ,and other athletic companies are gunning for Nike's growth. Under Armour (NYSE: UA  ) , Oakley, Puma, Adidas, and other brands are trying to play where Nike dominates. Here's how Nike has gotten ahead of the competition, as well as a look at how it can stay ahead.

Staying a step ahead in technology
Athletic gear isn't just about fashion; it's about technology as well. Under Armour made a splash in athletic wear when it launched with its compression fabric, and Nike was forced to respond or lose the market. The competition led to the Dri-Fit line that's come to dominate everything from cold-weather gear to golf polos for Nike.

Technology is even key to staying competitive in a sport like golf. Year after year, golf manufacturers fight to stay a step ahead of the competition with minor tweaks that improve performance. Nike has the R&D team to keep up, and with names such as Tiger Woods and Rory McIlroy at the top of Nike golf, the company is set up for success.

The next step of Nike's technology strategy is NikeFuel, a number generated through Nike FuelBands that tracks movement and calories burned. Now Nike is connected to its customers daily through the bands and electronically through tracking apps. Nike isn't just athletic wear; it's trying to become an athletic lifestyle through technology.

Growing up with the generations
Nike has managed to stay relevant among multiple generations as well, something that very few companies can do. In the youth market it competes against Under Armour in football, track, and other sports. Among adults it's a huge player in golf, competing against Callaway, Titleist, and Oakley.

A strategy that includes so many different sports and age ranges usually leads to disaster for a brand. What 16-year-old kids want to wear the same brand as their parents do? Somehow, Nike has managed to balance being "cool" with kids and being stylish with adults without alienating either. If Nike is going to stay a top stock, this will be key going forward.

Untapped markets
Finally, for Nike stock to continue outperforming, the market the company will have to continue expanding its presence. Before Tiger Woods, the company had almost no presence in golf, and today it's a major player. A market that Nike has left virtually untapped is the yoga market. lululemon athletica (NASDAQ: LULU  ) has a virtual monopoly on yoga, which provides an incredible opportunity for competitors.

A snafu in Lululemon's supply chain earlier this year may have supplied just the opportunity Nike and others needed. A batch of errant "see-through" pants has left stores out of stock in some of the most desirable fashions the company offers.

This is one area where Nike can actually compete on cost, offering yoga pants for a lower price than Lululemon. That's not usually a selling point for Nike, but it might be in this case.

Nike stock has upside
If Nike can execute on the keys I've highlighted, I think the stock has plenty of upside. Nike has been growing at high single or low double digits over the past three years, and that trend should continue as emerging markets spend more on athletic gear and Nike expands its product line.

From a margin standpoint, Nike is actually lagging behind both Under Armour and Lululemon, but that means there's either an opportunity to improve margins or to undercut these companies on cost (like in yoga).

NKE Gross Profit Margin Quarterly data by YCharts.

Nike stock trades at 25 times earnings, which is a reasonable price given the upside potential I've highlighted. I'm confident enough in the company's future to make an outperform call on MyCAPS. Follow this and the rest of my picks here.

Can Lululemon fight off Nike?
Lululemon has the potential to grow its sales by 10 times if it can penetrate its other markets like it has in Canada, but the competitive landscape is starting to increase. Can Lululemon fight off larger retailers and ultimately deliver huge profits for savvy investors? The Motley Fool answers these questions and more in its most in-depth Lululemon research available. Thousands have already claimed their own premium ticker coverage; gain instant access to your own by clicking here now.

 

The 6 Most Generous States in America

Tragedy has always inspired Americans to give their support to those in need. The devastating tornado that hit the Oklahoma City suburb of Moore earlier this month is just the latest example of how natural disasters and other catastrophic events draw in charitable support from people seeking to lend their aid, with tonight's benefit concert and telethon to broadcast on NBC adding to the influx of donations that charities have already seen in the past week.

Although Americans across the nation are generous in their giving, it's still interesting to see which states see the most charitable activity. One simple way of looking at generosity would be simply to look at total giving, as a study last year from The Chronicle of Philanthropy did in its analysis of 2008 IRS data. But another way to look at the question is to examine the percentage of tax returns filed in each state that claim a deduction for charitable giving, and the Tax Foundation looked at that question in its analysis of more-recent 2011 IRS data. Let's take a look at the six states that had the highest percentages of tax returns claiming charitable deductions, also including information from The Chronicle of Philanthropy's study about total and median contribution levels to see how they compare.

Coin images courtesy U.S. Mint.

6. Virginia
In Virginia, 32.5% of all tax returns included a charitable deduction. The state made total contributions of $4.2 billion, amounting to a median amount of $2,790 per taxpayer. One big loss for the state's charitable community will come from the winding-down of the Freddie Mac Foundation, which expects to distribute all of its assets by the end of 2014 in connection with the conservatorship of Freddie Mac (NASDAQOTCBB: FMCC  ) .

5. Minnesota
Among Minnesotans, 32.7% claimed a charitable deduction on their tax returns. With median contributions of $2,213 per taxpayer, Minnesota gave a total of $2.6 billion. Corporate giving in Minnesota is also a high priority, with foundations associated with 3M and US Bancorp (NYSE: USB  ) among many with annual giving amounts of $10 million or more. US Bancorp recently started accepting donations at its ATMs for Oklahoma-directed efforts of the American Red Cross.

4. Utah
Utah boasted the fourth-highest percentage of returns, including a deduction for charitable giving at 33.1%. The Chronicle of Philanthropy found that Utah residents boasted the highest percentage of discretionary income devoted to charitable giving, at 10.6%. Median contributions of $5,255 per taxpayer amounted to total giving of $2.4 billion.

3. Connecticut
Connecticut weighed in with 35.9% of taxpayers claiming a charitable deduction. Total contributions of $2.3 billion reflected relatively low median contributions of $1,916 per taxpayer. With General Electric (NYSE: GE  ) having its corporate headquarters within the state, the GE Foundation represents a huge influence on philanthropic activity both inside Connecticut and across the nation. GE and the foundation also stepped up with donations of medical equipment to one Oklahoma City-area hospital to help handle the influx of patients injured in the Oklahoma tornado.

2. New Jersey
Among New Jersey taxpayers, 36% deducted charitable donations in 2011. State residents gave $4.5 billion, with the typical taxpayer contributing $2,181. Among corporate donors, the Robert Wood Johnson Foundation, named after one of the founders of Johnson & Johnson, and Merck's (NYSE: MRK  ) foundation both have an important impact on the state's charitable activity. Merck gave out almost $1.3 billion in cash and products during 2011 in efforts to get its medications into the hands of those who otherwise couldn't afford them.

1. Maryland
Maryland topped the list with a whopping 40.1% of all tax returns including a deduction for charitable donations. Median contributions of $2,969 led to total giving of $3.9 billion. Numerous private foundations help in the charitable efforts of the state, with a broad-based set of organizations providing support for a large number of different initiatives and charitable missions.

One key to keep in mind
It's reasonable to argue that this measure of generosity among states is unfair because of the nature of the charitable deduction. In order to deduct donations to charity, you have to itemize your deductions; those who take the standard deduction instead won't get included in these percentages even if they made charitable gifts. Indeed, among these states, only Virginia managed to crack the top 10 on The Chronicle of Philanthropy's overall list. Yet many of the states on this list have relatively high state income and property taxes, which are also deductible items and make it more likely that taxpayers will itemize deductions rather than taking the standard deduction.

Merck has done a solid job with its charitable giving, but this titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a premium research report on Merck, The Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

First Solar No Longer the Shining Star of Solar Stocks

For nearly a decade First Solar (NASDAQ: FSLR  ) has paced the solar industry. The company's thin-film solar modules were by far the most affordable per watt when the industry was emerging in the 2000s, and it generated a gross margin of over 50% for a period of time.

But First Solar is no longer the dominant player it once was. Competition from China rapidly lowered the cost of polysilicon panels and the company's cost leadership has evaporated. To make matters worse, as the cost of modules has fallen, efficiency has become more important and First Solar has effectively been forced out of the residential solar market. Add all of this up and margins have dropped, and so has First Solar stock along with them.

FSLR Gross Profit Margin Quarterly data by YCharts

To make up for these challenges First Solar has made some bold moves recently. It bought start-up TetraSun, who can supposedly build polysilicon panels at high efficiencies and low cost. In theory, this will eventually allow First Solar to focus on areas outside of utility-scale solar.

Utility-scale solar drives the business
Where First Solar still has a significant lead is in utility-scale solar, where module cost per watt and installation efficiencies mean more than in smaller installations. But for utility-scale projects to drive the business, a company needs to continue adding projects to make up for projects built in a quarter. That's why it's of concern that backlog has fallen from 3.0 GW six months ago to 2.5 GW today.

The company's economies of scale may not lead to industry leading margins for much longer either. SunPower (NASDAQ: SPWR  ) is releasing C7 this year, which concentrates the sun's rays seven times onto its high-efficiency solar cells. With a higher-efficiency offering SunPower can pack more solar onto the same land as First Solar, which will put pressure on First Solar's less-efficient modules as SunPower's costs drop.

MEMC Electronic Materials (NYSE: WFR  ) is also transitioning from a solar supplier to a project builder, adding competition to the business. MEMC also has a larger 2.7 GW pipeline, although it doesn't have the same history in utility-scale projects as First Solar.

The bottom line is that a lead in utility-scale solar isn't durable without differentiating modules, which is where First Solar is falling behind.

No presence in residential solar
The biggest disadvantage for First Solar right now is that it doesn't have exposure to the growing residential solar market. This is where SunPower and SolarCity (NASDAQ: SCTY  ) are growing their leasing businesses and defining what the future of solar power will look like. It's this distributed solar source that makes more financial sense than giant utility projects in the long term because they'll have power consumed at the source and cut down on transmission and distribution costs.

What SolarCity and SunPower are transitioning to is an energy solution model, where they provide energy monitoring, storage, efficiency, as well as solar modules. In the utility space, First Solar is just competing on cost, but in an effort to improve efficiency in the residential market is why First Solar bought TetraSun.

First Solar stock priced for perfection
Combine all of the factors above with the fact that First Solar's stock is trading at 11 times trailing earnings, and the only conclusion is that it's asking a lot of the company's growth. Unless First Solar can start up TetraSun's production without hiccups, and fill backlog more quickly in coming quarters, I don't think it looks like a value.

I recently took a deep dive into First Solar to see what the company's prospects look like, even in the best case scenario. If you're looking for this and continuing updates and guidance on the company whenever news breaks, The Motley Fool has created a brand-new report that details every must know side of this stock. To get started, simply click here now.

Seagate to Float New Bond Issue

Seagate Technology (NASDAQ: STX  ) is tapping the debt markets for a fresh infusion of cash. The company announced that it will offer up to $1 billion in senior notes in a private placement.

The company will use the proceeds to restock its coffers following the redemption of a 10% senior secured notes issue, to pay down $250 worth of other senior notes, and for "general corporate purposes." It said the latter might include capital expenditures, investments, and repayments of other existing debt facilities.

In its recently reported Q3 2013, the company's cash and cash equivalents stood at $1.4 billion, down from $1.7 billion in the same period of 2012.

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Tiffany's Gem of a Quarter

The following video is from Tuesday's Investor Beat, in which host Chris Hill and analysts Jason Moser and Matt Koppenheffer dissect the hardest-hitting investing stories of the day.

Shares of Tiffany shine after the jeweler reports higher-than-expected quarterly earnings. Same-store sales were up 20% in Japan and 8% overall. Shares of the luxury retailer hit an all-time high on the news. Should investors be excited? In this installment of Investor Beat, our analysts discuss this story, as well as four stocks that made big moves on Tuesday's market and two stocks they will be watching with great interest this week.

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

Staples Is a Free Cash Flow Machine

Though considered by some to be a sinking ship and/or takeover target, office supply juggernaut Staples (NASDAQ: SPLS  ) is pushing through its 52-week highs as the company reported respectable earnings during Thursday's trading. Realistically, revenue is growing, the balance sheet is very conservative, and management has taken solid steps in pushing Web-based sales and delivery, as well as international expansion. Still, the company faces headwinds in a devastatingly low-margin business that requires expansion outside of core office products. Should Staples be a part of your retail portfolio? Let's take a look at recent earnings to find out.

Earnings recap
For the first quarter of 2013, Staples brought in $5.8 billion in revenue -- a 3% discount to last year's number and roughly in line with analysts' estimates. On the bottom line, the company earned $0.36 per share, a miss of one penny from the Street's estimate and, again, slightly less than 2012's number.

One of the more exciting figures was the $306 million in free cash flow that the company generated. European same-store sales were also encouraging -- reaching a three-year high.

As is so many a big-box store these days, Staples is in the midst of a "reinvention," and management claims this one is right on target. But, as we have seen with some of the less successful retail turnarounds lately, management optimism is not always a guarantee of success.

Negotiating headwinds
Staples is planning a comeback based on European expansion, continued rollout of its Quill delivery service, a widening of product offerings, and cost-control efforts. In the past year, the company introduced 90,000 new SKUs to the website, which management says have resulted in a $1 million-per-week sales increase.

The website overall has seen a 3% increase in sales, compared to the year-ago quarter. The company recently appointed Raul Vasquez to its board of directors. Vasquez was previously CEO of Walmart.com and is a omnichannel retailing veteran.

On the brick-and-mortar front, the company is downsizing its square footage, with 13 stores closed this year, and 48 North American stores in the past 12 months. The move is part of a larger, $150 million cost-saving effort that should free up additional cash flows.

Management expects the top line to grow minimally, especially in Europe, but sees opportunity in margin improvements and streamlining operations. The company expects $900 million in free cash flow for the full year.

Foolish bottom line
Though I was not a fan of brick-and-mortar Staples, I am inclined to take a deeper look at its slimmer self. The company seems to be shifting to a more asset-light, high-ROIC, low-capex model that resembles that of growth companies -- tech in particular. The company is planning to pay down nearly $870 million in debt this year, and still has $1.4 billion in cash and equivalents. A year-end enterprise value of roughly $10 billion (an approximation) implies an EV/FCF ratio of 11.1 times. For comparison, Office Depot (NYSE: ODP  ) expects $10 million to $20 million in free cash flow for the year, implying an EV/EBITDA of 64 times to 128 times. On an EV/EBITDA basis, however, the two look nearly identical.

Given that Office Depot seems to be focusing on cost-cutting to offset sales drops, and given the favorable free cash flow metrics for Staples, I am firmly of the belief that Staples is the more favorable investment of the two and that investors interested in a turnaround retail play should take notice.

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

Stocks Surge on High Consumer Confidence

After the long holiday weekend, market participants were given some great news this morning: Consumer confidence has hit a five-year high. Industry group The Conference Board claims that consumer attitudes jumped to 76.2 from a revised 69 in April. Most estimates had pinned the number at 71, so this was quite the surprise.  

As of 11:45 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 159 points, or 1.04%. The S&P 500 has risen 19.62 points, or 1.19%, while the Nasdaq has gained 44 points, or 1.28%. Investors seem to have all but forgotten about the possible Fed slowdown, which everyone was so fearful of last week, and at this time all but one of the Dow's 30 components are moving higher.

Besides the consumer confidence number, a positive housing report also reached investors today, and is likely the reason shares of Home Depot (NYSE: HD  ) rose 1.72%. The better-than-expected home price report showed that in March prices once again rose, and year-over-year gains have now risen 11%. With home prices continuing to climb, Home Depot should continue to see increased business levels, which will likely be followed by higher profits.  

Big pharmaceutical company Merck (NYSE: MRK  ) received a boost from an analyst at Jefferies today. The firm increased Merck's rating from a hold to a buy. The analyst feels Merck is among the best restructuring plays in the drug business, and that the company will likely spin off units as its core pharmaceutical business underperforms. Merck does have an animal division as well as a consumer health unit, which could both be peeled away. Shares of Merck are up 2.12% this morning.

Light crude is higher by 1.2% this morning and now trading in the $95 range, which is one reason shares of both ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) are moving higher today. Exxon is up 1.29% while Chevron has risen 1.1%. Chevron also announced that it would be extending a $2 billion loan to a joint venture it has with a Venezuelan state-run oil company. Chevron holds 40% of the venture and the loan will be used to increase production.  

More foolish insight
If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For free access to this special report, simply click here now.

These Miners Are Decliners

Down under in Australia, new BHP Billiton (NYSE: BHP  ) CEO Andrew Mackenzie has just laid out a plan to cut capital spending "quite significantly" over the next few years. BHP's capital investment will drop from $22 billion to $18 billion in 2014 -- and then keep falling.

According to Mackenzie, this reduced spending on capex is going to release a gusher of free cash flow at the company. But what does it mean for other companies that sell to BHP? Listen in, as Fool.com contributor Rich Smith explains...

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's brand-new report. Just click here to access it now.

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More Expert Advice from The Motley Fool

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Top 5 Prefered Stocks To Invest In Right Now

With a stock price that's up 0.8% after Wednesday trading, Hartford, Conn.-based United Technologies (NYSE: UTX  ) looks bulletproof today. Helping it get that way is a new contract that UTC subsidiary LifePort just won from the U.S. Air Force.

On Wednesday, UTC announced that USAF Special Operations has contracted with LifePort to outfit its fleet of Sikorsky HH-60G PAVE HAWK�helicopters with a bulletproof Improved Ballistic Armor Sub System to protect helicopter pilots from ground fire. The PAVE HAWK is a variant of UTC's famed UH-60 Black Hawk helicopter, preferred by U.S. special forces.

According to UTC, LifePort is currently "the only company in the marketplace today able to" manufacture "qualified armored flight seat pallets based on strict USAF specifications." It's also apparently able to manufacture them quickly. UTC says it will have the entire USAF HH-60G fleet outfitted with the new ballistic armor before the end of September.

Top 5 Prefered Stocks To Invest In Right Now: NVE Corporation(NVEC)

NVE Corporation engages in the development and sale of devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information. It manufactures high-performance spintronic products, including sensors and couplers used to acquire and transmit data. The company?s products comprise standard sensors to detect the presence of a magnet or metallic material to determine position or speed; and custom and medical sensors primarily for medical devices to replace electromechanical magnetic switches. It also offers spintronic couplers, including passive-input couplers, digital-input couplers, and isolated network couplers in various series. In addition, the company licenses the spintronic magnetoresistive random access memory technology, as well as provides contract research and development services. NVE Corporation sells its products through distributors, principally in the United States, Europe, and Asia. The company was founded in 19 82 and is headquartered in Eden Prairie, Minnesota.

Top 5 Prefered Stocks To Invest In Right Now: Northwest Natural Gas Company(NWN)

Northwest Natural Gas Company stores and distributes natural gas primarily in Oregon, Washington, and California. The company operates in two segments, Local Gas Distribution and Gas Storage. The Local Gas Distribution segment distributes natural gas in Oregon and southwest Washington. The Local Gas Distribution segment distributes natural gas in Oregon and southwest Washington. This segment engages in building and maintaining pipeline distribution system, purchasing gas from producers and marketers, contracting for the transportation of gas over pipelines from the supply basins to service territory, and reselling the gas to customers. It also transports gas owned by customers from the interstate pipeline connection, or city gate, to the customers? facilities. This segment serves various industries, including pulp, paper, and other forest products; companies manufacturing electronic, electrochemical, and electrometallurgical products; companies engaged in processing of fa rm and food products; metal fabrication and casting companies; organizations that produce various mineral products, machine tools, machinery, and textiles; companies that manufacture asphalt, concrete, and rubber; printing and publishing companies; nurseries; government and educational institutions; and electric generation companies. It has approximately 674,000 utility customers comprising approximately 611,000 residential, 62,000 commercial, and 1,000 industrial customers. The Gas Storage segment offers underground natural gas storage services to interstate and intrastate customers. It holds interests in approximately 9,900 net acres of underground natural gas storage in Oregon and approximately 5,000 net acres of underground natural gas storage in California. This segment serves primarily natural gas distribution, electric generation, and energy marketing companies. The company was founded in 1910 and is headquartered in Portland, Oregon.

Top Energy Stocks To Own For 2014: B Communications Ltd. (BCOM)

B Communications Ltd. provides various communications services in Israel. The company offers a range of telecommunications services, including local fixed-line, cellular, Internet, international communication, multi-channel television, satellite broadcasting, and customer call center. It also engages in the development and maintenance of communications infrastructures; provision of communications services to other communications providers, television, and radio broadcasts; and supply and maintenance of equipment on customer premises, such as network endpoint services. The company was formerly known as 012 Smile.Communications Ltd. and changed its name to B Communications Ltd. in March 2010. The company was founded in 1999 and is headquartered in Ramat Gan, Israel. As of June 30, 2010, B Communications Ltd. operates as a subsidiary of Internet Gold-Golden Lines Ltd.

Top 5 Prefered Stocks To Invest In Right Now: Xyratex Ltd.(XRTX)

Xyratex Ltd provides modular solutions for the enterprise data storage industry and hard disk drive (HDD) capital equipment for the HDD industry. It offers enterprise data storage solutions that include storage enclosures, which provide a common technology platform that reduces qualification time for original equipment manufacturer (OEM) customers and includes management interface software, standardized across enclosures, and provides easy integration as new platforms; integrated application platforms that comprise embedded storage platforms, which incorporate embedded server modules into its storage enclosures; and HPC Solutions that consolidate controllers, storage enclosures, application platforms, operating system, data protection, Lustre File System, and management software into a optimized scale-out storage platform that can be deployed in hours rather than weeks. The company also designs and manufactures a range of process test systems, which incorporate mechanical and electronic hardware, and firmware for controlling the HDD operating environment during the formatting of the disk drive. In addition, it provides automated solutions comprising substrate and media inspection systems; servo track writers and related subassemblies; and head testing systems that test and process HDD components throughout the manufacturing process. The company markets and sells its products primarily to OEMs and disk drive manufacturers, as well as to other companies in North America, Asia, and Europe. Xyratex Ltd was founded in 1966 and is headquartered in Havant, the United Kingdom.

Top 5 Prefered Stocks To Invest In Right Now: Dynetek Industries Com Npv (DNK.TO)

Dynetek Industries Ltd., together with its subsidiary, Dynetek Europe GmbH, engages in the design, manufacture, and marketing of lightweight compressed gas fuel storage systems and high pressure components for alternative fuel technologies and industrial gas suppliers primarily in North America and the European Union. The company offers DyneCell cylinders, which are thin-walled lightweight storage cylinders for the storage of compressed natural gas, compressed hydrogen, and other industrial compressed gases, such as oxygen and helium; and pressure regulators, valves, and other components that control the pressure and flow of compressed gas. It also provides fuel storage systems design and integration; testing and validation; certification and compliance; system level assembly; training; and service and warranty services. The company�s cylinders and fuel storage systems are primarily used in passenger automobiles; light and heavy-duty trucks; transit vehicles and school bu ses; the bulk hauling of compressed gases; and stationary storage or ground storage refueling applications. In addition, Dynetek Industries Ltd. is involved in various hydrogen and research and development projects with original equipment manufacturers. The company was formerly known as Island Packaging Supplies Ltd. and changed its name to Dynetek Industries Ltd. in December 1990. Dynetek Industries Ltd. was founded in 1990 and is headquartered in Calgary, Canada. As of September 17, 2012, Dynetek Industries Ltd. operates as a subsidiary of Luxfer Holdings PLC.

Oil Falls on Concerns for China Demand, Fed Policy

NEW YORK (AP) -- The price of oil fell Thursday as weak manufacturing data from China raised questions about the strength of oil demand in the world's No. 2 economy.

Oil's decline was exacerbated by sharp declines in global stock markets amid indications that the U.S. Federal Reserve may pull back on its economic stimulus program. An earlier loss of $2 a barrel was trimmed by midday, however, as U.S. stock markets recovered.

Benchmark oil for July delivery was down 64 cents to $93.64 a barrel in midday trading on the New York Mercantile Exchange.

HSBC (NYSE: HBC  ) said a preliminary version of its monthly purchasing managers' index fell to 49.6 for May from 50.4 in April. Numbers below 50 indicate contraction. Oil prices fell because a downturn in energy-hungry China would likely lead to a decline in crude demand.

Oil prices struggled as global stock markets turned lower due to signs that the U.S. Federal Reserve could slowly tighten its monetary policy. Equity markets posted large losses Thursday in Asia and Europe, including a 7.3 percent fall in Tokyo's Nikkei 225 index of shares. U.S. stock markets fell initially then recouped some earlier losses. On Wednesday, stocks slumped in the afternoon when minutes from the Fed's last policy meeting showed some members favored slowing the central bank's stimulus program.

Ample U.S. supplies of crude oil and refined products such as gasoline are also weighing on oil, even as the summer driving season gets under way in the U.S. with Memorial Day weekend. AAA's prediction that for the third time in four years more than 31 million Americans would hop in the car and drive 50 miles or more didn't sway analysts.

"Ahead of the start of the summer driving season, (gasoline) stocks are 6 percent up on the long-term average and 10 percent higher than last year's level," said a report from Commerzbank.

The average price of a gallon of gas held steady at $3.66, up 6 cents from a week ago although still 2 cents cheaper than at this time last year.

Brent crude, a benchmark for many international oil varieties, was down $1.05 to $101.55 a barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

Wholesale gasoline fell 1 cent to $2.81 a gallon. Heating oil lost 2 cents to $2.85 a gallon. Natural gas rose 3 cents to $4.22 per 1,000 cubic feet.

Is Hershey Stock on a Sugar High?

Hedge fund manager David Einhorn criticized the Federal Reserve last year for "force-feeding us what seems like the 36th Jelly Donut of easy money and wondering why it isn't giving us energy or making us feel better." Since that comment, both Einhorn and the Fed have probably lost count of just what number doughnut the market has consumed. But the analogy stands: Prices built on short-term actions, results, or sentiment don't lead to sustainable returns. Is Hershey  (NYSE: HSY  ) , the seller of many sugar highs, on its own unsustainable high at a P/E of 30? Or can Hershey keep stuffing enough chocolate into the world's mouth to keep stockholder returns sweet?

A history of Hershey's valuation
Outside of recessionary blips, Hershey's P/E has never hit above 35:

HSY P/E Ratio TTM data by YCharts.

Of course, past results have no bearing on the future. And Hershey's earnings could very well grow into supporting this P/E while rewarding shareholders. CEO John Bilbrey enlightened investors as to just how that might be achieved in the latest conference call, expecting net sales for the rest of the year growing 5% to 7%, gross margins growing 1.9% to 2.1%, and earnings per share growing 12%. This kind of expected growth puts its forward P/E around 22.

Plans to turn sugar into profit
Hershey is in the midst of what it calls "Project Next Century," in which it is spending $250 million to $300 million to modernize facilities, with annual savings between $60 million and $80 million. The company will be able to cut 500 to 600 jobs in total by the time the project is completed in 2014 as it moves to more automated processes.

Hershey's also is pushing its new Brookside brand, which "artfully combines smooth dark chocolate with exotic fruit juices." It is still early in the brand's launch, but Bilbrey says, "from what we see of the early customer reaction, consumer reaction, offtake, repurchase, we're just awfully encouraged, and we think this could be a very big brand."

Additionally, the company's international operations are seeing some high energy. China, Mexico, and Brazil revenue taken together increased 20% over the past year. In China, the small chocolate Kisses took more than a percentage point of market share recently, for a total near 6% of market share. In Mexico, the company said it was the fastest-growing chocolate brand in convenience stores, while in supermarkets its Kisses sales were up over 16%. In Brazil, the company beat a local branded chocolate bar to take the No. 3 spot in the market.

But is it worth the potential sugar crash?
Hershey's solid profit margins, capital investments, and strong sales performance make it a quality company, but you have to pay up for that quality. A competitor like Mondelez  (NASDAQ: MDLZ  ) has lower margins, with lower return on assets and equity, but is a little more than half as expensive based a variety of valuations:

Company P/E PEG P/S Price to Cash Flow

Hershey	30	2.6	3	22.9
Mondelez	18.5	1.5	1.6	12.8

With Hershey's stock up over 20% this year so far, the phrase "priced for perfection" comes into mind. Depending on how well you think Hershey can execute in the future, it's likely worth its premium price.

On the other hand, shares of Mondelez International fell immediately after it separated from its parent company, Kraft. Is this an indictment of the idea, or a buying opportunity today? Our top consumer goods analyst will give you the scoop in our premium research report on Mondelez. Just click here now for instant access.

Monro Muffler Brake Beats on Revenue, Matches Expectations on EPS

Monro Muffler Brake (Nasdaq: MNRO  ) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q4), Monro Muffler Brake beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Monro Muffler Brake booked revenue of $195.9 million. The eight analysts polled by S&P Capital IQ expected a top line of $190.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $171.7 million.

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

EPS details
EPS came in at $0.25. The eight earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS of $0.25 for Q4 were 22% lower than the prior-year quarter's $0.32 per share.

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

Margin details
For the quarter, gross margin was 36.0%, 270 basis points worse than the prior-year quarter. Operating margin was 7.9%, 340 basis points worse than the prior-year quarter. Net margin was 4.1%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $209.4 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $864.6 million. The average EPS estimate is $1.78.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 77 members out of 91 rating the stock outperform, and 14 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Monro Muffler Brake a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monro Muffler Brake is outperform, with an average price target of $40.00.

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European Stocks Advance as China Backs Germany in Crisis

European stocks rose as Chinese Premier Li Keqiang said his country will rely on Germany to lead the euro out of its crisis and boost the global economy as European leaders begin to tackle soaring unemployment after three years of budget cuts. Asian shares fell.

SAP AG (SAP) rose 0.7 percent after ending talks to buy Jive Software (JIVE) Inc. Club Mediterranee (CU) SA, the French holiday-resort operator, jumped 24 percent after saying that it got a friendly bid from two shareholders.

The Stoxx Europe 600 Index climbed 0.3 percent to 304.28 at 8:08 a.m. London time. European stocks posted their first weekly loss in more than a month last week as investors debated when the Federal Reserve will scale back momentary stimulus, Chinese manufacturing unexpectedly shrank and Japanese markets slid. U.S. markets are closed for the Memorial Day holiday today. The MSCI Asia Pacific Index fell 1.3 percent.

"We have a mixed situation on the trading floor," Roger Peeters, chief executive officer at Close Brothers Seydler Research in Frankfurt, wrote in a note. "On the one hand, the strong uptrend over the last few months has giving investors the awareness that markets have a strong momentum, which is not expected to turn suddenly. On the other hand, the solid and strong losses in Japan, which also had some serious consequences on the development in Europe, have underlined the dependence of this bull market on cheap money stimuli."

Li, on the final stop of his first trip as Chinese leader, said the government in Beijing will continue to stand by the EU. He said the fact that Germany was the only EU nation he visited underscored its position and the "very, very important" ties between Germany and China.

Resolve Difficulties

"We earnestly hope that the EU resolves these temporary difficulties, and we hope that the euro area can remain stable," Li told reporters as he stood beside Merkel yesterday in Berlin. A strong euro "is also a good thing for China's own development -- and good for the whole world."

German consumer confidence will jump to the highest in more than 5 1/2 years in June as low unemployment and receding inflation encourage households to spend, GfK AG said.

The market research company forecast today that its consumer-sentiment index, based on a survey of about 2,000 people, will increase to 6.5 next month from 6.2 in May. That would be the highest since September 2007. Economists expected the index to remain unchanged, according to the median of 26 estimates in a Bloomberg News survey.

Jobless Proposals

Germany and France are due to announce joint proposals tomorrow to address youth unemployment under the banner of a "New Deal for Europe." The blueprint may involve the European Investment Bank "leveraging" 6 billion euros available through 2020 from the EU to yield as much as 60 billion euros in loans to tackle joblessness, Germany's Rheinische Post reported May 13.

The plan will be aired by the German and French finance ministers, Wolfgang Schaeuble and Pierre Moscovici, and by the respective labor ministers, Ursula von der Leyen and Michel Sapin, in the French capital.

SAP AG added 0.7 percent to 59.06 euros. The world's largest maker of business-management software held discussions within recent weeks to acquire Jive Software, which has a market value of more than $1 billion, people familiar with the matter said.

SAP quit talks with Jive, which makes social-networking applications for businesses, after a thorough review of the company, said the people, who asked not to be named because the matter is private.

Club Mediterranee

Club Mediterranee soared 24 percent to 17.12 euros, its biggest gain on record, after it said that Axa Private Equity and Fosun Property made a friendly bid for the French tour operator.

Club Mediterranee has set up a committee to assess the offer, and has suspended its share buyback program. The company also reported first-half income of 18 million euros, compared with 17 million euros a year earlier.

Fiat SpA, Italy's largest carmaker, climbed 3.2 percent to 5.60 euros. The Italian government will ask Chief Executive officer Sergio Marchionne what it "can do to let the carmaker keep its plants in Italy," Industry Minister Flavio Zanonato said in a television interview with Sky Tg24. "We should find a way to match Fiat's interest with the country's," he said.