Wednesday, July 31, 2013

Top Clean Energy Companies To Invest In Right Now

Quietly, Apple (NASDAQ: AAPL  ) is rolling out iCloud syncing for both movies and TV shows.

How do I know? I'm one of what seems to be a growing number of iTunes season pass subscribers. Last week, I downloaded the latest episode of the second half of Series 7 of Doctor Who -- see the trailer at the end -- and started watching as I always do: 15 minutes at lunch at my desk, followed by a download to my iPad Mini during a workout break later in the day.

In years past, I'd write down the time stamp for where I'd left off so that, when switching devices, I'd catch myself up manually. Not this time. This time, iTunes was smarter. The download to my iPad included a bookmark for where I'd stopped watching on my Mac.

Source: Apple.

Top Clean Energy Companies To Invest In Right Now: Singapore Shipping Corp Ltd (S19.SI)

Singapore Shipping Corporation Limited, an investment holding company, engages in the ownership and management of ships in Sweden, Japan, and Singapore. It owns a fleet of four car carriers for charter. The company offers ships management services in various areas comprising technical management, dry docking, procurement, crew procurement and management, and certification and audits, as well as ship inspection and new construction consultancy services. The company is based in Singapore.

Top Clean Energy Companies To Invest In Right Now: Rathbone Bros.(RAT.L)

Rathbone Brothers Plc, through its subsidiaries, provides investment management services and related professional advice to private individuals, trustees, charities, pension funds, and professional advisers in the United Kingdom and Jersey. The company offers discretionary, charity, and ethical investment management, as well as unit trusts, tax planning, trust and company management, pension advice, and banking services. Its trust and tax services consist of taxation services, such as compliance and planning; probate services; trust services, including trust formation, administration, accounting and provision of trustees, and protectors; and family office services. The company also provides financial planning, private banking, offshore fund management, and trust administration services. In addition, it offers self-invested personal pensions administration services. Rathbone Brothers was founded in 1742 and is headquartered in London, the United Kingdom.

5 Best Dividend Stocks For 2014: El En(ELN.MI)

El.En S.p.A., through its subsidiaries, engages in the research, development, manufacture, distribution, and sale of laser systems in Europe and internationally. It offers laser systems for medical applications, including aesthetics, surgical, physiotherapy, dermatology, surgery, cosmetics, dentistry, and gynaecology. The company also provides laser systems for industrial applications, such as cutting, marking, and welding of metals, wood, plastic, and glass, as well as in the decoration of leather and fabric, and the conservative restoration of works of art; and systems for scientific applications and research. In addition, it offers after-sales service, including support for the installation and maintenance of its laser systems; and spare parts, consumables, and technical assistance services. The company sells its products through its subsidiaries, as well as through a network of distributors. El.En S.p.A. was founded in 1981 and is headquartered in Calenzano, Italy.

Tuesday, July 30, 2013

2012 Was the Worst Year Ever for Nuclear Energy

There are lots of nuclear energy companies that would like to leave 2012 behind. Of all the major energy sources, it was the only one that saw a global decline in total consumption. The decline in the United States was largely attributed to cheap natural gas, as it captured a much larger chunk of market share, while alternative energy options became more attractive. To compound the problem, the Fukushima Daiichi meltdown made several countries abroad rethink nuclear use. In Japan, 89% of all nuclear power was shut down as a result of the disaster.

So the question remains, where does nuclear go from here? The increasing attractiveness of solar and wind is going to make it harder and harder to justify using nuclear as a base-load power source, because the economics of doing so is not as attractive as that for natural gas or even coal. One element that could completely change the landscape is restrictions on carbon emissions. Tune in to the following video, where Fool.com contributor Tyler Crowe discusses what these events could mean for nuclear and what some utility companies are doing in light of these new trends. 

5 Best Stocks To Watch For 2014

The energy industry in the United States is changing fast, but that doesn't mean you should immediately pull out and wait for the dust to settle. For disciplined investors who do their homework, there are several great stocks out there that would be a sound addition to your portfolio. The Motley Fool's chief investment officer has identified one under-the-radar energy company as his pick of the year. Let us help you get started on your analysis of this company by checking out our free special report: "The Motley Fool's Top Stock for 2013." Just click here to access the report.

Monday, July 29, 2013

TodayĆ¢€™s 3 Worst Stocks

Investors weren't blown away with today's data, which is understandable since there wasn't anything too meaningful released. Though the bearish mood can partially be justified by the downtick in June pending home sales, an even bigger decline was expected. The rest of the week looks to be more informative, with a deluge of economic events: A two-day Federal Open Market Committee meeting, weekly jobless claims, the monthly payroll report, and GDP all promise to spice things up. The S&P 500 Index (SNPINDEX: ^GSPC  ) fell 6 points, or 0.4%, ending at 1,685. 

"Alternative beverage" and energy drinks company Monster Beverage (NASDAQ: MNST  ) logged some of the steepest losses in the index today, losing 3.6%. There wasn't much material news today for investors to be fearful of, but the same can't be said for the last several months. One perpetual setback for the company is the legal risk it assumes for selling and marketing its controversial energy drinks. In May, for example, the city of San Francisco sued Monster for marketing its caffeine-heavy drinks to kids without concern for potential health risks. 

Drugmaker Biogen Idec (NASDAQ: BIIB  ) shed 3.3% Monday after Perrigo reached an agreement to buy the Ireland-based Elan. This entitles Perrigo to the royalties Biogen pays to Elan for its 50% ownership stake in multiple sclerosis drug Tysabri. While the success of the drug, which generated $1.6 billion in revenue last year, is obviously welcomed by Biogen investors, the company will start paying a higher royalty once sales cross $2 billion annually, a figure not so far away with a nearly 20% growth rate. 

Lastly, Southwestern Energy (NYSE: SWN  ) , which produces and explores for oil and natural gas in the U.S., slumped 3% today. A decline of some kind was appropriate, considering that the oil and gas sector was the worst-performing sector of the index today. The 3% slip becomes even easier to understand upon noting falling natural gas prices, an unfavorable trend for natural gas explorers like Southwestern. 

It's no secret that biotech stocks have been soaring recently, but the best investment strategy is to pick great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" not only shares stocks that could help you build long-term wealth, but also winning strategies that every investor should know. Click here to grab your free copy today.

Sunday, July 28, 2013

Starbucks Still Looks Like a Buy

The Street had high expectations for Starbucks (NASDAQ: SBUX  ) going into its third-quarter earnings release... and it delivered.

With the stock up about 6%, a quick glance at the quarter's key metrics in comparison to last quarter reveals why the market is reacting so positively.

Quarter

Revenue Growth (YOY)

Comparable Store Sales (Global)

Operating Margin

Q2 2013 

11%

6%

15.3%

Q3 2013

13%

8%

16.4%

Source: SEC filings for quarters shown.

The company's growth rates actually accelerated. Meanwhile, its operating margin continues to expand.

As if the quarter's performance wasn't enough to get the Street excited, Starbucks introduced robust guidance for 2014.

Metric

2014 Guidance

Revenue growth

10% to 13%

Net new stores

1,400

Consolidated operating margin improvement

150 to 200 basis points

EPS growth

18% to 22%

Source: Q3 FY13 earnings release.

The "flywheel" effect
Starbucks undoubtedly had a great quarter, but is the company really deserving of a price-to-earnings ratio of 35? Certainly not on the foundation of a great quarter and robust guidance alone.

To merit such a premium, a company should possess both a durable competitive advantage and meaningful momentum. Given these characteristics, projecting sustained high levels of EPS growth for years to come is a realistic assumption, giving credence to Starbucks' price-to-earnings ratio.

Its gross profit margin of 56% is solid evidence of the company's brand-enabled pricing power, supporting the argument for Starbucks' durable competitive advantage. Fifty-six percent is just 4 percentage points short of Buffett's beloved Coca-Cola stock, a classic example of a consumer goods business with a Buffett-like economic moat.

Its operating scale further reinforces the company's economic moat. As Starbucks continues to open new stores and expand its distribution, the company is benefiting from the scale that accompanies volume. Though refranchising in Europe and easing coffee costs can be credited for much of Starbucks' operating margin improvements, some of it is simply the result of a leverageable business. Going forward, management's guidance for 150 to 200 basis points' improvement in operating margin is also reflective of Starbucks' clear scale advantages.

Best Stocks To Buy For 2014

An economic moat alone, however, won't deliver the company from its lofty expectations. Starbucks needs momentum. Though management's plan for 1,400 new stores in 2014 will definitely help, it's Starbucks' ability to diversify its offerings and expand its distribution that is really propelling the company.

"Our more than 19,000 store global footprint, our fast-growing CPG presence and our best-in-class digital, card, loyalty and mobile capabilities are creating a 'flywheel' effect elevating the relevancy of all things Starbucks, and driving profitability," said Schultz in the third quarter earnings release.

Starbucks' massive store presence, its fast-growing consumer packaged goods business, and its successful loyalty card (dollars loaded on Starbucks Cards globally grew 30%, year over year) already makes for an impressive list, but there's more to Starbuck's flywheel effect: expansion to daypart business, revamped in-store food offerings, store redesigns, and expansion of drive-thru formats.

The flywheel effect, an idea popularized by business author Jim Collins, suggests that once companies build positive momentum, it is hard to slow them down. Starbucks' CFO, Troy Alstead, did an excellent job (intentionally or not) making a case for Starbucks' flywheel effect in the company's third-quarter earnings release:

Our ability to grow income at a pace that exceeds revenue growth clearly demonstrates the strategic synergies we generate across our global footprint, which combined with the diversity of our portfolio, enables consistent delivery of excellent results. Looking forward to FY14 and beyond, I am as confident as ever in our ability to continue to deliver strong revenue and earnings growth.

Don't run from Starbucks' valuation
Consistency. Starbucks' ability to consistently deliver excellent results thanks to its economic moat and diversified momentum make the company worthy of its premium valuation.

In the short term, Starbucks' lofty valuation could make for a bumpy ride. But for Foolishly long-term-minded investors, Starbucks seems like a low-risk bet for a sweet gain.

Are you looking for growth stocks? Motley Fool co-founder David Gardner, founder of the No. 1 growth stock newsletter in the world, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, WITH YOU! It's a special 100% FREE report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click HERE for instant access to a whole new game plan of stock picks to help power your portfolio.