Jabil Circuit, Inc. (JBL) Analyst Day Preview: All Eyes On Blackberry Ltd (BBRY) Update

Jabil Circuit, Inc. (NYSE: JBL) is holding its analyst day on Oct. 30 in Boston followed by an afternoon event in Clinton where investors will get to see Nypro's facilities first hand.

Based in St. Petersburg, Florida,  Jabil Circuit is the third-largest provider of electronic manufacturing services (EMS) to global OEMs. The company's principal markets include computing and storage, networking, telecommunications, mobility, industrial, medical, mobility, and consumer electronics.

Jabil has historically been a top performer in the EMS space. The company is currently above peak operating margins and has seen considerable growth over the past few quarters.

Subsequent to Jabil's most recently reported results, a number of EMS peers have reported, suggesting a more muted outlook for the December.

"We believe this could suggest a modest cut to guidance, although we expect F1Q-14 guidance was overly conservative to account for BBRY uncertainty," Deutsche Bank analyst Sherri Scribner wrote in a note to clients.

Jabil's near-term challenge is navigating its exposure to BlackBerry Ltd. (NASDAQ: BBRY), a 12 percent customer in fiscal 2013. Jabil is expected to disengage with Blackberry as it has been decreasing its production of BlackBerry handsets and is likely to end its relationship with BlackBerry as soon as practicable.

At its analyst day, the company is expected to provide an update on current demand trends and a preliminary fiscal 2014 outlook which factors in the Nypro acquisition, as well as the impact of the BlackBerry business.

Outside of BlackBerry, Apple, Inc. (NASDAQ:AAPL) has grown to 19 percent of sales, an exposure that it would also need to manage gradually. Nypro's addition bolsters Jabil's HC business while also expanding into packaged goods serving brands like P&G, Clorox, Coke.

More detail on restructuring actions following probable BlackBerry disengagement is expected at the event. In fact, a major topic of discussion during Jabil's fo! urth quarter 2013 call was the company's possible disengagement from BlackBerry given the uncertain revenue outlook.

In anticipation of lower-than-expected sales from BlackBerry, Jabil suggested it would take additional restructuring actions in the range of $35 million to $85 million, aimed at resizing the HVS segment.

"Given the decision was in the early stages of discussion at the time of JBL's F4Q-13 earnings call, we would expect more detail on JBL's plans with BBRY and for its underutilized equipment, as well as the margin impact of a possible disengagement over the next few quarters," Scribner said.

Meanwhile, Jabil may provide additional information on its fiscal 2014 outlook as well as more detail on Nypro, which represented $1 billion of fiscal 2013 revenue. As is typical, management should provide an update on its long-term outlook for its business, including growth expectations given the probable loss of Blackberry, which accounted for $2.2 billion in revenue in fiscal 2013.

Margins will be another area of focus, given the different moving parts. On its fourth quarter call, Jabil updated its fiscal 2014 EPS expectations to be roughly $2.48 (down from $2.77), and the Street would expect further detail on strategies over how the company reaches that goal.

"The impact of Nypro in particular will be a focus, and we would expect an update and more detail on when Nypro will become accretive to JBL's margins in FY-14, including when DMS margins return to target ranges of 5.5-7.0%," Scribner said.

Moreover, the company may be asked over the operating margin leverage, which may offset positive trends of improved margins and potential return of growth rates to more normal levels over the next year. In future quarters, the market sees more difficult revenue growth in some of its segments and the same concerns would be shared with the company at the event.

"In contrast to his predecessor, we believe new CEO Mondello will likely place a greater emphasis on growth ! and ROIC,! rather than specifically on margins. We see M&A playing a greater role complementing existing markets, technologies, and increasing Jabil's value-add with key customers," UBS analyst Amitabh Passi said in a client note.

In this scenario, the right strategy is to diversify further into non-technology markets with longer design and product cycles, especially in healthcare, industrial, A&D, and packaged goods.

JBL shares, which trade times its 2014 consensus estimate, have gained 30 percent in the last year,. Given near-term uncertainties with BlackBerry, the stock likely remains in a holding pattern for the next quarter or two until there is greater clarity on how the BlackBerry situation ges resolved.

GM, Chrysler report Q3 earnings Wednesday

General Motors and Chrysler Group are due to report third-quarter earnings Wednesday, testing whether they were able to sail on the same strong breeze that propelled Ford Motor to healthy results last week.

The earnings reports are due early in the day. Both automakers discuss the numbers later in the morning with investment analysts and journalists. .

While car sales in the U.S. are expected to be a bright spot as the economy recovers, the real test will be whether Europe has recovered sufficiently to avoid dragging down the fortunes of GM and Chrysler's parent, Fiat, there.

China is important, too, and the market for cars there continues to grow.

On Tuesday, the government's General Accountability Office issued an update on GM, citing "increasingly positive financial results" as the car company continues to make progress from its low in 2009, when both it and Chrysler went through government-scripted Chapter 11 bankruptcy reorganizations.

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"For each of the past three years, GM has reported profits, positive and growing operational cash flow, and a stable liquidity position. This improved financial performance has been reflected in GM's credit rating, as each of the three largest credit rating agencies has increased GM's long-term credit rating," the GAO wrote.

The GAO noted, however, that GM has lower market share than before its bankruptcy filing and it still has a large pension liability, despite a series of moves to reduce the burden.

Data from Kelley Blue Book show GM's share of the U.S. new-vehicle market is 17.7% in the third quarter this year. Its Q3 market share from 2007 before the Great Recession hit hard, to last year, generally has tracked down, from 25.1% in 2007 to 18% a year ago.

Bill to slow Labor Department fiduciary-duty rule headed for House vote

Yea or Nay: Rep. Ann Wagner's bill that would slow or even stop the Labor Department's fiduciary rule is up for a vote this week.

The House is scheduled to vote this week on legislation that would slow or even kill a Labor Department regulation to strengthen investment advice rules governing retirement plans.

The measure, written by Rep. Ann Wagner, R-Mo., would prohibit the Labor Department from proposing the rule, which would expand the definition of “fiduciary” as it applies under federal retirement law, until 60 days after the Securities and Exchange Commission adopts a separate rule that would raise standards for brokers providing retail investment advice.

In addition, the bill would require the SEC to determine whether retail investors are harmed by the different advice standards governing investment advisers and brokers. Advisers must act in the best interests of their clients, while brokers adhere to a less stringent suitability standard when selling financial products.

The measure was approved in June by the House Financial Services Committee, 44-13 — a tally that included 13 Democrats.

A KILL BILL?

Critics of the bill say that it could effectively kill the DOL rule because the SEC has not determined whether to proceed with its own regulation.

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The DOL originally proposed its rule in 2010 to protect workers and retirees from conflicted investment advice as they build their nest eggs through 401(k) plans and individual retirement accounts.

The rule was withdrawn after a fierce backlash from the financial industry, which argued that it would subject IRAs to fiduciary duty for the first time — curtailing broker commissions and potentially driving them out of the market.

The DOL was scheduled to re-propose the rule this month, but it has been delayed.

In a video released Sunday, Ms. Wagner said that the DOL rule would “likely increase the cost of doing business for Main Street financial professionals and cut off access to financial advice for low- and middle-income families.”

CONFLICTING RULES

Brian Graff, chief executive and executive director of the American Society of Pension Professionals and Actuaries, said that if the DOL and SEC don't coordinate their efforts, they could produce different rules for investment advice within the same portfolio.

“It's important that regulators tread very carefully so that we don't reduce access to advice or create rules that will make advice more confusing to investors, not less confusing,” Mr. Graff said Sunday on the sidelines of ASPPA's annual conference in National Harbor, Md. “We should focus more on disclosure and not on prohibiting this access.”

Assistant Labor Secretary Phyllis Borzi is the champion of the DOL rule. She has said that the measure will address IRAs but not prohibit commissions. Her goal is to hold investment advisers accountab! le.

“What I'm talking about is making sure the advice you give is primarily, overwhelmingly and unassailably the best plan for the client,” Ms. Borzi told an audience in September at a Financial Services Institute Inc. conference in Washington.

Ms. Borzi has been feeling heat from both sides of the aisle. Observers expect that 50 to 75 Democrats will vote for Ms. Wagner's bill.

Even though its passage in the House is assured, there doesn't appear to be any interest in the Senate for a similar version of the measure.

But even if the Senate doesn't act, the House vote will send a message, according to Mr. Graff.

“Everyone expects that the regulation is still going to come out next year,” he said. Ms. Wagner's “bill is intended to convey a concern.”

Yelp Inc (YELP) Q3 Earnings Preview: Shorts Beware

Yelp, Inc. (YELP) will issue its financial results for the third quarter ended September 30, 2013 after the market close on Tuesday, October 29, 2013.  Yelp will host a conference call to discuss the results at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day.

Wall Street anticipates that internet services provider will lose a penny for the quarter. iStock expects YELP to hit Wall Street's consensus number. The iEstimate is a loss of a penny, too.

Yelp, Inc. operates Yelp.com, an online urban city guide that helps people find places to eat, shop, drink, relax, and play based on the informed opinions of a community of locals in the know.

Since Yelp business is online and advertising dependent, investors can get an idea of what to expect by looking at traffic and search volume trends. According to Alexa.com, Yelp's page views were up 9.5% versus the previous three months. Quantcast.com shows the online service's number of unique visitors rising in July and August, but flattening out in September.

When we flip over to Google trends, we find that search volume intensity for "Yelp" is up 3.44% in the third quarter relative to Q2, and 8.5% compared to Q2 2012.

Based on the trio of online resources, iStock expects to see Yelp's unique visitor number to log in at a minimum of 112 million. More visitors with more page views equal more ads served, which usually means more advertising dollars.

Based on our calculations, those dollars should add up to revenue close to $59.98 million for the three months ended September 30, 2013. Our estimate is a little higher than the consensus revenue target of $59.41 million.

If the relationship between sales growth and cost increases remains somewhat constant quarter-over-quarter (QoQ), then our excel sheet says total costs and expenses should be in the neighborhood of $58.54 million, which mean an operating profit of $0.013 before other income/expenses.

Should YELP deliver a profit, not matter how small wh! en a loss is expected, we wouldn't be too shocked to see the stock rock. In its limited public life, Yelp has produced two bullish surprises in its half-dozen quarterly checkups. The pair of beats propelled bulls big-time as the stock gained 28.30% and 30.3% in the three days bookending the better than expected EPS announcements.

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With 26.10% of the float (stock available for trading) sold-short, a surprise trip into the black could make short-sellers yelp, ENOUGH! and write up a bunch of buy tickets to cover.

Overall: Web traffic and Google trends hint at a little better than expected quarter for Yelp, Inc.'s (YELP) top and bottom lines. Shorts beware if we've made the correct call.

What age is best to start taking Social Security?

USA TODAY personal finance reporter John Waggoner answers a different reader question every week on retirement. To submit a question, e-mail John at jwaggoner@usatoday.com.

Q: I was born in 1951. What's the best age to start taking Social Security?

A: You're 62, so you could start taking your Social Security benefits now.

But you'd be better off waiting. If you retire now, a $1,000 monthly benefit would be cut to $750, according to the Social Security Administration. You won't be able to collect your full benefit until you hit age 66.

NEW: USA TODAY Retirement Section

You receive your maximum benefit at age 70, and you won't get a larger benefit if you wait until after 70 to collect. By and large, you'll get about the same amount of money from Social Security whether you retire early or not.

If you retire now, you'll get smaller payments over a longer time. But if the level of income you get is important, your best bet is to wait.

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Stocks up on hopes Fed stimulus will continue

Click the chart for more stock market data.

NEW YORK (CNNMoney) The September jobs report wasn't great, but stocks rose Tuesday as investors anticipated that lackluster hiring will push the Federal Reserve to keep its monetary stimulus as is in the months ahead.

The Dow Jones industrial average, S&P 500 and the Nasdaq were all up modestly. The S&P 500 once again hit an all-time high in morning trading.

The jobs report, which was delayed more than two weeks because of the government shutdown, showed the economy gained just 148,000 jobs last month. But the unemployment rate ticked down to 7.2%, the lowest November 2008.

Still, the numbers suggest that the U.S. economic recovery remains fragile and that the Fed will likely keep buying $85 billion in bonds each month for a bit longer.

The Fed has repeatedly said it wants to see more improvement in the job market before it decides to begin scaling back, or tapering, its bond buying program.

Economists expect the Fed will want more data on how the shutdown impacted the economy before it will be ready to start cutting back on its $85 billion a month in bond purchases. Most economists forecast the central bank won't begin tapering until 2014.

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Earnings keep rolling in: After surging to an all-time high in early trading, Netflix (NFLX) reported strong quarterly earnings and a rosy outlook late Monday. Shares initially surged to an all-time high in early trading, but quickly fell into the red.

Netflix shares have been on a tear all year, up 270% so far. But Netflix CEO Reed Hastings said he isn't comfortable with the huge run-up. On a post-earnings conference call with analysts, he said Netflix thinks "momentum investors" are "driving the price more than we like normally" -- but that it's out of the company's control.

StockTwits user keywestbidwacker said Hasting's comments should be a red flag for investors.

"$NFLX never own a stock that a CEO talks down... not shareholder friendly at all... crazy...," he said.

Others suggested that investors who have profited from Netflix's significant advance may be starting to take money off the table to rake in some profit, including billionaire investor Carl Icahn.

"$NFLX Perfect example of not looking a gift horse! in the mouth," TechTrader17 said. "I bet Icahn finally took some skin out of the game too."

Delta (DAL, Fortune 500) shares also jumped after the airline reported quarterly profit growth.

DuPont (DD, Fortune 500) reported slightly better quarterly earnings, boosted by a lower tax rate and growth in its electronics and communications business.

Coach (COH) posted earnings and sales that missed forecasts, led by a drop in domestic sales. The one bright spot was China, where sales jumped 35%.

Lockheed Martin (LMT, Fortune 500) shares rose after the aircraft manufacturer reported a jump in quarterly profit, year over year, and increased its full-year outlook. The good news came despite the government shutdown, which led Lockheed and other defense contractors to furlough some workers.

  Whirlpool cleans up

Whirlpool (WHR, Fortune 500) shares rallied after the home appliance giant reported a third-quarter profit that doubled from a year ago and boosted its outlook for the year.

Tablet-palooza: Apple (AAPL, Fortune 500) will be in the spotlight in the afternoon, when it hosts an event at which it is expected to unveil a new version of the iPad.

Nokia (NOK), which is selling its device business to Microsoft (MSFT, Fortune 500), unveiled its first full-size tablet and a pair of big-screen colorful Lumia smartphones earlier Tuesday. Shares of Nokia were also up after Dan Loeb said his hedge fund Third Point purchased a stake in Nokia during the third quarter. In a letter to clients, Loeb said he made the purchase after the sale to Microsoft was announced.

"Here come the activist investors! $NOK," said StockTwits user CS917047.

One trader said he expects Loeb's position could help drive shares of Nokia up 10% in the com! ing weeks! .

"$NOK Now everyone is positive except some early bargain hunters who are exiting like Nordea," said mecka. "Dan Loeb will take it to $8 in few weeks."

European markets edged higher in afternoon trading. Asian markets ended the day mixed. Stocks in Hong Kong fell after a weak earnings report from China Mobile (CHL), while Japan's Nikkei inched higher.

Men's Wearhouse Board Outlines Why It Fired Zimmer

The Men's Wearhouse (NYSE: MW  ) board of directors, which abruptly terminated 64-year-old company co-founder George Zimmer from his position as executive chairman last week, today commented on why it was severing its ties with the company's iconic face and voice.

The board said Zimmer "had difficulty accepting the fact that Men's Wearhouse is a public company with an independent Board of Directors and that he has not been the Chief Executive Officer for two years. He advocated for significant changes that would enable him to regain control ... "

According to the board of directors, issues of contention included:

A refusal to support CEO Doug Ewert and his management team unless they "acquiesced to his demands." Zimmer handed over the CEO title to Ewert in 2011. An expectation of "veto power over significant corporate decisions" including executive compensation. A desire to take the company private despite the board's belief that "such a transaction would be highly risky."

Men's Wearhouse's annual shareholders meeting, which was to be held on June 19, has been postponed to a to-be-announced date in order to renominate its current slate of directors, but without Zimmer.

Zimmer, best-known for his gravely voiced television sales pitch -- "You'll like the way you look. I guarantee it." -- submitted his letter of resignation from the board on Monday. Zimmer said in the letter that it's clear from his firing that the board is determined to avoid addressing his growing concerns with recent board decisions and the company's direction.

Zimmer built Men's Wearhouse from one small Texas store using a cigar box as a cash register to one of North America's largest men's clothing sellers with 1,143 locations.

Zimmer still owns 3.5% of Men's Wearhouse shares.

-- Material from The Associated Press was used in this report.

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5 Stocks Poised for Breakouts

 DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

RealD

One entertainment production equipment player that's starting to move within range of triggering a big breakout trade is RealD (RLD), which is a licensor of 3D technologies. This stock has been hit hard by the sellers so far in 2013, with shares off by 37%.

If you take a look at the chart for RealD, you'll notice that this stock has been destroyed by the bears over the last four months and change, with shares plunging from its 52-week high of $16.05 to its 52-week low of $6.19 a share. During that downtrend, shares of RLD have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of RLD might be ready to see its downside volatility end in the short-term, since the stock is starting to stabilize and move within range of triggering a big breakout trade.

Traders should now look for long-biased trades in RLD if it manages to break out above some near-term overhead resistance levels at $7.17 to $7.45 a share, and then once it clears its 50-day moving average at $7.66 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 447,771 shares. If that breakout hits soon, then RLD will set up to re-test or possibly take out its next major overhead resistance levels at $8.26 to $9 a share. Any high-volume move above those levels will then give RLD a chance to tag $10 to $11 a share.

Traders can look to buy RLD off any weakness to anticipate that breakout and simply use a stop that sits right around its 52-week low at $6.19 a share. One can also buy RLD off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Fusion-IO

Another technology player that looks ready to trigger a big breakout trade is Fusion-IO (FIO), which is a provider of data-centric computing solutions. This stock has been hammered by the bears so far in 2013, with shares off by 38%.

If you take a look at the chart for Fusion-IO, you'll notice that this stock has been uptrending modestly over the last month, with shares moving higher from its low of $13.05 to its recent high of $14.78 a share. During that uptrend, shares of FIO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FIO within range of triggering a big breakout trade.

Traders should now look for long-biased trades in FIO if it manages to break out above some near-term overhead resistance levels at $14.40 to $14.90 a share, and then once it takes out its 200-day moving average at $15.22 a share to more resistance at $15.50 to $16 with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 3.69 million shares. If that breakout hits soon, then FIO will set up to re-fill some of its previous gap down zone from May that started near $19 a share. Shares of FIO could even tag $20 to $22 if that gap gets filled with strong upside volume flows.

Traders can look to buy FIO off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $13.55 to $13 a share. One could also buy FIO off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Biolase

One health care player that's starting to trend within range of triggering a major breakout trade is Biolase (BIOL), which is a medical technology company that develops, manufactures and markets laser systems for dental and medical applications. This stock is off to a decent start in 2013, with shares up 12%.

If you take a look at the chart for Biolase, you'll notice that this stock has been trending sideways and consolidating for the last two months, with shares moving between $1.64 on the downside and $2.24 on the upside. Shares of BIOL have now started to spike higher right off its 200-day moving average of $1.87 a share. That spike is quickly pushing shares of BIOL within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in BIOL if it manages to break out above some near-term overhead resistance levels at $2.15 to $2.24 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 627,655 shares. If that breakout triggers soon, then BIOL will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $4 a share.

Traders can look to buy BIOL off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.85 to $1.80 a share. One can also buy BIOL off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

E-Commerce China Dangdang

Another e-commerce player that's quickly moving within range of triggering a big breakout trade is E-Commerce China Dangdang (DANG), which is engaged in selling books online. It is also engaged in other media products and selected general merchandise categories. This stock has been on fire so far in 2013, with shares up a whopping 170%.

If you look at the chart for E-Commerce China Dangdang, you'll notice that this stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $7.68 to its recent high of $12.19 a share. During that uptrend, shares of DANG have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DANG within range of triggering a big breakout trade.

Traders should now look for long-biased trades in DANG if it manages to break out above some near-term overhead resistance levels at $11.50 to its 52-week high at $12.19 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 3.15 million shares. If that breakout triggers soon, then DANG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17 a share.

Traders can look to buy DANG off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $9.71 a share. One can also buy DANG off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

NeoPhotonics

My final breakout trading prospect is technology player NeoPhotonics (NPTN), which is a designer and manufacturer of PIC-based modules and subsystems for bandwidth-intensive, high-speed communications networks. This stock is off to a strong start in 2013, with shares up sharply by 31%.

If you look at the chart for NeoPhotonics, you'll notice that this stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $6.20 to its recent high of $7.75 a share. During that uptrend, shares of NPTN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NPTN within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in NPTN if it manages to break out above some near-term overhead resistance levels at $7.58 to $7.75 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 129,108 shares. If that breakout triggers soon, then NPTN will set up to re-test or possibly take out its next major overhead resistance levels at $8.72 to its 52-week high at $9.77 a share. Any high-volume move above $9.77 will then give NPTN a chance to tag $11 to $12 a share.

Traders can look to buy NPTN off any weakness to anticipate that breakout and simply use a stop that sits right below either its 50-day moving average at $7.04 or its 200-day moving average at $6.65 a share. One could also buy NPTN off strength once it clears those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Diamondback: Permian Pick

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The top dog for oil exploration and production in the US at the moment just might be the Permian Basin in the western part of Texas, suggests Tyler Laundon in the 100% Letter.

The Permian lies just northwest of the Eagle Ford and is home to a number of shale intervals, including the Cline, Spraberry, and Wolfcamp. These stacked formations are gaining notoriety as they appear to hold far more oil than any previous estimate.

Diamondback Energy (FANG) is a relatively new small-cap pure play on the Permian Basin, given that the company just went public in October of 2012.

The company is smallish with a market cap of $1.8 billion. It has a nice acreage position approaching 65,000 acres (including recent acquisitions, which I'll soon discuss), almost all of which it operates.

It's a pure play Permian oil stock. It's also a fairly pure oil investment. The company's production split is 75% oil, 14% natural gas liquids (NGLs) and 11% natural gas. On a revenue basis, 90% of revenues come from oil, while 6% and 4% come from NGLs and natural gas, respectively.

FANG is aggressively transitioning away from vertical drilling and toward horizontal drilling, a move which is paying off in spades. In fact, based on management comments, it sounds like it will only drill vertical wells if it has to, to keep current with exploration commitments. Horizontal is the way to go, no ifs, ands, or buts.

Why horizontal? It's simple really—horizontal wells are far more profitable. While they cost several times more than a vertical wells (~$7.5 million versus ~$2.1 million), a horizontal well generates a much higher return, around 40% versus just 25% for a vertical well, according to FANG's reports.

Because of horizontal drilling, cost per barrel is going down, drilling time is going down, and returns are going up. Seems like a pretty sweet deal that's likely to get sweeter when FANG gets more rigs going.

The pace of drilling is ramping up; FANG has averaged around 16 wells per quarter over the last six months.

Meanwhile, acquisitions are fueling growth in reserves, drilling inventory, production and cash flow. FANG is on target to more than double its well count in 2013, it's moving more rigs in for 2014, and it has acquired a lot of very attractive acreage to drill out in the coming years.

In 2012, revenues were $75 million. It's on pace to hit ~$210 million in 2013—that represents a 180% increase. And I see 2014 revenues growing by another 120% to 140% considering the catalysts discussed above.

Given this revenue growth, earnings per share should be in the neighborhood of $1.30 in 2013 and $3.10 in 2014. That implies a forward-PE ratio on shares of about 14 times 2014 earnings, which is insanely cheap for this kind of growth.

The bottom line, in my view, is that Diamondback is an exciting small exploration and production company; operations are great, rig and well count is rising, production is growing, and the company has shown an ability to complete really attractive deals.

The Permian is one of the best places to be for US oil, and FANG is 100% levered to it. The stock has been a strong performer, but I don't see that as a reason to stay away. I'm looking for a steady grind higher from FANG.

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CBOE Delays Extended VIX Trading Due to Government Shutdo

CBOE Holdings Inc. (CBOE), the largest U.S. options exchange operator, delayed the start of extended trading of its volatility futures because the U.S. government shutdown is preventing regulators from approving its plans.

The exchange had planned to introduce an additional session for trading on the Chicago Board Options Exchange Volatility Index, or VIX, futures starting on Oct. 21. The sessions were planned for Monday through Thursday from 4:30 p.m. to 5:15 p.m. New York time. In the second phase, beginning on Oct. 28, the exchange was due to open at 3 a.m. New York time on each weekday, CBOE said Sept. 30.

The exchange will delay the second phase, and may have to push back the first phase of extended trading if the U.S. Commodity Futures Trading Commission is not able to resume full operations until after Oct. 15, CBOE said in a notice to members today. CBOE said it will announce a new date after the government shutdown ends.

The exchange "is operationally prepared to proceed with these launch dates," the company said in a notice to members today. "However, due to the government shutdown, the CBOE Futures Exchange must defer the launch of the second phase of expanded VIX futures extended trading hours."

The U.S. government's partial shutdown entered its third week. Congressional leaders have yet to reach an agreement on how to end the U.S. fiscal impasse amid mounting concern in financial markets three days before the government's borrowing authority lapses. Senate Majority Leader Harry Reid said yesterday that he had a "productive conversation" with Minority Leader Mitch McConnell without reaching a conclusion on a plan to send to the Democratic-controlled chamber for a vote.

Rule Changes

The exchange "is unable to implement the rule changes related to the second phase of expanded VIX futures extended trading hours by Oct. 28 because the CFTC is not processing rule certification filings from designated contract markets during the government shutdown," the company said in a notice to members today.

CBOE is trying to win more business outside the U.S. with the extended hours. A software update to prepare for the shift caused a malfunction that shut Chicago-based CBOE's main market for three-and-a-half hours in April, prompting the company to delay the introduction of the longer trading hours.

VIX futures, which let traders speculate on the size of equity market price swings, have grown in popularity with the bull market in U.S. stocks in its fifth year. More than 322,000 of the contracts changed hands on Oct. 8, the fourth-highest level on record, according to data compiled by Bloomberg. Average daily volume this year is on pace for a record high.

The exchange on Oct. 1 also introduced the CBOE S&P 500 Short-Term Volatility Index that tracks nine-day options on the Standard & Poor's 500 Index. The company's most famous gauge, the VIX, measures 30-day options on the S&P 500.

CBOE controls exclusive rights to the VIX and leverages that position by offering options and futures on the benchmark gauge of U.S. equity derivatives.

5 Stocks Under $10 Set to Soar

DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the hot movers in the under-$10 complex from Thursday, including Ku6 Media (KUTV), which is rocking higher by 29%; FreeSeas (FREE), which is soaring higher by 20%; Vonage (VG), which is ripping to the upside by 17%; and EnteroMedics (ETRM), which is spiking up 13%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently skyrocketed higher is agricultural biotechnology player Ceres (CERE), which I highlighted in Sept. 27's "5 Stocks Poised for Breakouts" at $1.47 per share. I mentioned in that piece that shares of CERE were just starting to trend back above its 50-day moving average at $1.45 a share with heavy upside volume. That spike was quickly pushing shares of CERE within range of triggering a big breakout trade above some near-term overhead resistance levels at $1.67 to $1.68 a share.

Guess what happened? Shares of CERE started to trigger that breakout on October 2 after the stock hit an intraday high of $1.80 a share. The stock pulled back off that $1.80 level and traded right to its 50-day moving average of $1.39 a share and held at that key support zone. Then yesterday, shares of CERE exploded to the upside with monster upside volume as the stock hit an intraday high of $1.84 a share. That move represents a gain of over 30% for anyone who bought the stock under $1.50 a share. Shares of CERE have now hit an intraday high today of $2.09 a share, which adds even more gains to anyone who played this favorable technical setup. Shares of CERE still look poised for more upside, so traders should now watch for this stock to take out Thursday's high of $2.09 a share with strong volume.

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

Top 5 Clean Energy Stocks To Own Right Now

I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Empresas ICA

One under-$10 name that's starting to trend within range of triggering a big breakout trade is Empresas ICA SA (ICA), which is engaged in construction and related activities, including the construction of infrastructure facilities as well as industrial, urban and housing construction. This stock is off to a decent start in 2013, with shares up 11.8%.

If you take a look at the chart for Empresas ICA SA, you'll notice that this stock has been trending sideways inside of a consolidation chart pattern for the last two months, with shares moving between $7.94 on the downside and $9.73 on the upside. Shares of ICA are now starting to push back above its 50-day moving average of $8.75 a share, and the stock is quickly moving within range of triggering a big breakout trade. That trade will hit if ICA manages to take out the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in ICA if it manages to break out above some near-term overhead resistance levels at $9.34 to $9.73 a share and then once it clears its 200-day moving average at $9.94 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 527,965 shares. If that breakout triggers soon, then ICA will set up to re-test or possibly take out its next major overhead resistance levels at $11.50 to $12 a share. Any high-volume move above those levels could then put its 52-week high at $13.73 into focus for shares of ICA.

Traders can look to buy ICA off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8 a share, or around $7.94 a share. One can also buy ICA off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Hutchinson Technology

Another under-$10 electronic component player that's starting to move within range of triggering a big breakout trade is Hutchinson Technology (HTCH), which is a technology manufacturer that creates value by developing solutions to critical customer problems. This stock has been on fire during 2013, with shares up a whopping 75%.

If you take a look at the chart for Hutchinson Technology, you'll notice that this stock has been finding significant buying interest over the last two months, whenever it has pulled back to around $3.30 to $3.20 a share. This pattern could be signaling that shares of HTCH are forming a major bottoming chart pattern if those levels can hold as support. Shares of HTCH are now starting to flirt with its 50-day moving average at $3.56 a share. That move is starting to push the stock within range of triggering a big breakout trade above a key downtrend line.

Market players should now look for long-biased trades in HTCH if it manages to break out above its 200-day moving average of $3.65 a share and then once it clears more overhead resistance levels at $3.89 to $4.13 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 392,134 shares. If that breakout triggers soon, then HTCH will set up to re-test or possibly take out its next major overhead resistance levels at $4.75 to $5.50 a share, or even $6 a share.

Traders can look to buy HTCH off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.37 or at $3.17 a share. One can also buy HTCH off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Higher One

One under-$10 business services player that looks poised for a run higher is Higher One (ONE), which provides technology-based refund disbursement, payment processing and data analytics services to higher education institutions and students. It also provides banking services to campus communities. This stock has been hit hard by the bears so far in 2013, with shares down by 26%.

If you take a look at the chart for Higher One, you'll notice that this stock has been downtrending badly for the last three months, with shares plunging from its high of $11.93 to its recent low of $6.97 a share. During that downtrend, shares of ONE were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ONE have recently formed a double bottom chart pattern at $7.05 to $6.97 a share. This stock has now started to rebound sharply off that double bottom and move within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in ONE if it manages to break out above some near-term overhead resistance at $7.85 a share and then once it clears its 50-day moving average at $8.11 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 196,360 shares. If that breakout triggers soon, then ONE will set up to re-test or possibly take out its next major overhead resistance levels at $9 to its 200-day moving average of $9.77 a share. This stock could even tag $11 a share if that 200-day gets taken out with volume.

Traders can look to buy ONE off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.39 a share, or below $7 a share. One can also buy ONE off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Shanda Games

Another under-$10 gaming player that's starting to move within range of triggering a major breakout trade is Shanda Games (GAME), which is an online game company in China in terms of the size, diversity of its game portfolio, game revenues and game player base. This stock is off to a strong start in 2013, with shares up by 24%.

If you take a look at the chart for Shanda Games, you'll notice that this stock has formed a major bottoming chart pattern over the last two months, with shares of GAME finding significant buying interest whenever it's pulled back to around $3.80 a share. Shares of GAME are now starting to trend within range of triggering a major breakout trade above some key near-term overhead resistance levels. Those levels have acted as resistance for GAME for the last two months.

Market players should now look for long-biased trades in GAME if it manages to break out above some near-term overhead resistance levels at $4.85 to $4.98 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.71 million shares. If that breakout triggers soon, then GAME will set up to re-test or possibly take out its 52-week high at $6.42 a share.

Traders can look to buy GAME off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $4.18 a share or below that major support at $3.80 a share. One can also buy GAME off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Sirius XM Radio

One final under-$10 stock that looks ready to trend significantly higher is Sirius XM Radio (SIRI), which broadcasts its music, sports, news, talk, entertainment, traffic and weather channels in the U.S. for a subscription fee. This stock has been in play with the bulls so far in 2013, with shares up sharply by 36%.

If you take a look at the chart for the Sirius XM Radio, you'll notice that this stock has been uptrending strong for the last three months, with shares pushing higher from its low of $3.04 to its recent high of $4 a share. During that uptrend, shares of SIRI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SIRI within range of triggering a big breakout trade.

Traders should now look for long-biased trades in SIRI if it manages to break out above its 52-week high at $4 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 37.6 million shares. If that breakout triggers soon, then SIRI will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $5 to $6 a share.

Traders can look to buy SIRI off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $3.80 a share or near some more key support at $3.55 a share. One can also buy SIRI off strength once it clears its 52-week high at $4 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Handicapping America's Best Small Stocks

Few were surprised when small-cap stocks fell hard during the financial crisis. They are generally considered the riskiest group in the equity markets. In fact, during 2008 and early 2009 valuations for high-growth small caps dropped to their lowest levels in 30 years.

But as the market rebounded and our economy grew stronger from 2009 to 2012, investor appetite for risk—arguably more important than individual stock fundamentals during some periods—helped kick prices back up to more normal valuations.

These days a different dynamic is in play. With valuations no longer at bargain-basement levels, earnings growth will be the driver for high returns. For companies under $1 billion in market capitalization and with annualized growth rates of 30% or more, the average forward price-to-earnings multiple is now 16.1—a shade above the 15.6 times earnings for the S&P 500. But you're paying for faster growth, and it's actually an unusually small premium to those large-cap stocks.

I think there's still room for more fun. Here are my picks from the list of America's Best Small Companies. I've recommended some of these stocks in previous columns. I still like them and own them in my asset management firm.

8x8 8x8 is disrupting the telecom market for small businesses with cloud-based solutions for hosted PBX telephony, unified communications and videoconferencing. I expect revenues to grow 20% in the next year, while improving margins lead to an even stronger 43% earnings growth. The stock currently trades at 35 times my 2014 EPS estimate of 30 cents.

An uncertain economy is good for temporary staffing firm Barrett Business Services Barrett Business Services, which focuses on telecom needs of small and medium-size businesses mostly in the western U.S. As its customers expand, they're more likely to prefer the flexibility of temps and outsource noncore functions like human resources. The employer mandate of the Affordable Care Act may push many cost-conscious companies to part-time help. Shares trade at 25 times my 2014 earnings estimate of $2.80, for expected EPS growth of 37%.

Special Offer: For most investors, the overall U.S. stock market was a losing game for the last dozen years…but not for Oberweis Report readers, who have enjoyed triple-digit returns since 2000. See how we do it.

InvenSense is riding the Samsung boom. Its motion-tracking devices, such as gyroscopes (see Can InvenSense Make Microchips Sexy?), originally used in game systems like the Nintendo Nintendo Wii, are now becoming standard in smartphones. InvenSense recently ramped its market-leading six-axis single-chip gyro/accelerometer platform across Android phones, while contending with fierce rivalry and falling prices.

Though the company failed to get a design win in Apple's iPhone 5S and 5C, it has a shot with the new iPad later this year. I expect revenue to grow at 30% in the next 12 months. Shares trade for 23 times my 2014 EPS estimate of 85 cents.

IPG Photonics (IPGP, 60) produces fiber lasers whose high output and energy efficiency is well suited to such industrial applications as materials processing and automotive welding. Nearly seven in ten fiber lasers are made by IPG. China is a big buyer, accounting for about 35% of its sales; as its factories start whirring again, IPG is getting the updraft. Shares trade for 17 times my 2014 estimate of $3.50, with a 15% growth.

Stamps.com (STMP, 43) provides a service for purchasing and printing postage over the Internet (see Darwin's Digital Darlings: How These Web 1.0 Companies Survived And Thrived) and aims one day to cancel the old Pitney Bowes meters. Its customer list of individuals and small businesses grew 12% last quarter, year over year, and their postage use jumped 60%. Stamps.com has tremendous leverage, as seen by a 600-basis-point operating margin expansion last quarter. I expect the company will increase revenues at a 15% clip and earnings at an even faster rate. Shares trade at 17 times my 2014 EPS estimate of $2.65.

Jim Oberweis is president of Oberweis Asset Management and editor of the Oberweis Report. For more information visit www.forbes.com/oberweis.

 

The Benefits of Tactical Rotation in Any Market: Braver’s D’Amico

How far we’ve come.

The plethora of new products and strategies to help with portfolio management is something at which to marvel. Yet the confusion that accompanies many, and how, exactly, they’re best deployed, it a constant struggle for the advisory industry.

“A big issue is the way investment solutions have changed and evolved over the past 10, 15 and 20 years, and how it helps investors today, especially with interest rates as they are,” says Dave D’Amico.

Twenty years ago, it was pretty simple, notes the president and chief market strategist of Boston-based Braver Capital Management .

“As someone entered retirement, you’d take them down the risk curve by incorporating more fixed income investments. At the time, Treasuries not only had the safety they were known for, but were also offering 6% and 7% yields.”

Today, however, you have all these new alternative investments and tactical strategies in addition to traditional equities, fixed income and cash, D’Amico adds. Although interest rate risk is rising, fixed income investing is still relatively safe if one holds to maturity; however he emphasizes that yields will no longer support clients in retirement, and have advisors wondering what to do.

So what, exactly, should they do?

“Alternative investments and tactical strategies can deliver hedge-fund-like returns with risk that approximates fixed income but they can also provide a competitive total return as markets advance,” he argues. “Many of these alternative asset classes come with a standard deviation equal or less than fixed income, but they get the returns.”

Of course, definitions vary as to what alternative investments really are. D’Amico and his team, which manages $750 million in assets, stay away from managed futures and similar products because “they can get messy, especially in rising markets.”

“We keep it clean, and have a number of tactical rotation strategies that strategically move to cash when appropriate,” he says.

In this way, investors get the upside participation and downside protection so many crave.

“One common allocation is to have roughly 33% of our portfolio in equities, 33% in fixed income and 33% in tactical rotation strategies, with tactical rotation on the rise.”

Like many, he concludes that modern portfolio theory isn’t dead, but it has to evolve.

“You can’t stay fully invested with today’s volatility; it’s just too dangerous.”

---

Check out this year's Think Retirement Income Conference in Boston on Oct. 10 and 11. For more information and a list of speakers, please visit www.thinkretirementincome.com. 

 

Hot Oil Companies For 2014

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 W&T Offshore (NYSE: WTI  ) were getting pumped up today, gaining as much as 16% after reporting earnings and increasing its dividend payout.

So what: The Gulf of Mexico oil and gas explorer posted revenue in the quarter of $259.2 million, well ahead of estimates of $239 million, and delivered earnings per share of $0.35, which also easily beat expectations of $0.28. CEO Tracy Krohn noted that W&T "saw 20% growth in oil production" and credited the results on "the success of our strong development drilling program." W&T also raised its quarterly dividend 12.5% from $0.08 to $0.09, giving investors a 2.5% yield.

Hot Oil Companies For 2014: Phillips 66 (PSX)

Phillips 66 is a holding company. The Company is engaged in producing natural gas liquids (NGL) and petrochemicals. The Company operates in three segments: the Refining and Marketing (R&M) segment, the Midstream segment and the Chemicals segment. The Refining and Marketing (R&M) segment purchases, refines, markets and transports crude oil and petroleum products, mainly in the United States, Europe and Asia, and also engages in power generation activities. The Midstream segment gathers, processes, transports and markets natural gas, and fractionates and markets NGL, predominantly in the United States. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. The Company�� operations encompass 15 refineries with a gross crude oil capacity of 2.8 million barrels per day, 10,000 branded marketing outlets and 7.2 billion cubic feet per day of gross natural gas processing capacity.

R&M

The Company�� R&M segment primarily refines crude oil and other feedstocks into petroleum products (such as gasolines, distillates and aviation fuels); buys, sells and transports crude oil; and buys, transports, distributes and markets petroleum products. This segment also engages in power generation activities. R&M has operations in the United States, Europe and Asia.

The Company�� Bayway Refinery is located on the New York Harbor in Linden, New Jersey. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil. Its Trainer Refinery is located on the Delaware River in Trainer, Pennsylvania. Refinery facilities include fluid catalytic cracking units, hydrodesulfurization units, a reformer and a hydrocracker. The Alliance Refinery is located on the Mississippi River in Belle Chasse, Louisiana. The single-train facility includes fluid catalytic cracking units, hydrodesulfurization units and a reformer and aromatics unit. Alli! ance produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other products include petrochemical feedstocks, home heating oil and anode petroleum coke.

The Lake Charles Refinery is located in Westlake, Louisiana. Its facilities include crude distillation, fluid catalytic cracker, hydrocracker, delayed coker and hydrodesulfurization units. The refinery produces a percentage of transportation fuels, such as gasoline, off-road diesel and jet fuel, along with home heating oil. It owns a 50% interest in Excel Paralubes, a joint venture which owns a hydrocracked lubricant base oil manufacturing plant located adjacent to the Lake Charles Refinery. The Sweeny Refinery is located in Old Ocean, Texas, approximately 65 miles southwest of Houston. Refinery facilities include fluid catalytic cracking, delayed coking, alkylation, a continuous regeneration reformer and hydrodesulfurization units. It produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other products include petrochemical feedstocks, home heating oil and coke.

The Company�� Merey Sweeny, L.P. (MSLP) owns a delayed coker and related facilities at the Sweeny Refinery. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. The Company owns 50% operating interest in Sweeny Cogeneration, a joint venture, which owns a simple cycle, cogeneration power plant located adjacent to the Sweeny Refinery. The plant generates electricity and provides process steam to the refinery, and it also provides merchant power into the Texas market.

The Company�� Wood River Refinery is located in Roxana, Illinois, about 15 miles northeast of St. Louis, Missouri, at the convergence of the Mississippi and Missouri rivers. Operations include three distilling units, two fluid catalytic cracking units, hydrocracking, coking, reforming, hydrotreating and sulfur recovery. The refinery produces a percentage of transportation fuels, such as gasoline,! diesel a! nd jet fuel. Other products include petrochemical feedstocks, asphalt and coke. Its Borger Refinery is located in Borger, Texas, in the Texas Panhandle, approximately 50 miles north of Amarillo. The refinery facilities consist of coking, fluid catalytic cracking, hydrodesulfurization and naphtha reforming, in addition to a 45,000-barrels-per-day NGL fractionation facility. It produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as coke, NGL and solvents.

The Ponca City Refinery is located in Ponca City, Oklahoma. It is a high-conversion facility, which includes fluid catalytic cracking, delayed coking and hydrodesulfurization units. It produces a range of products, including gasoline, diesel, jet fuel, liquefied petroleum gas (LPG) and anode-grade petroleum coke. The Billings Refinery is located in Billings, Montana. Its facilities include fluid catalytic cracking and hydrodesulfurization units. The Ferndale Refinery is located on Puget Sound in Ferndale, Washington, approximately 20 miles south of the United States-Canada border. Facilities include a fluid catalytic cracker, an alkylation unit, a diesel hydrotreater and an S-Zorb unit. The Los Angeles Refinery consists of two linked facilities located about five miles apart in Carson and Wilmington, California. The San Francisco Refinery consists of two facilities linked by a 200-mile pipeline. The Santa Maria facility is located in Arroyo Grande, California, about 200 miles south of San Francisco.

As of December 31, 2011, the Company marketed gasoline, diesel and aviation fuel through approximately 8,250 marketer-owned or -supplied outlets in 49 states. At December 31, 2011, its wholesale operations utilized a network of marketers operating approximately 6,875 outlets that provided refined product offtake from its refineries. In addition to automotive gasoline and diesel, it produces and markets aviation gasoline, which is used by smaller piston engine aircrafts. As December 31, 2011,! aviation! gasoline and jet fuel were sold through dealers and independent marketers at approximately 875 Phillips 66-branded locations in the United States.

The Company manufactures and sells automotive, commercial and industrial lubricants, which are marketed worldwide under the Phillips 66, Conoco, 76 and Kendall brands, as well as other private label brands. It also manufactures Group II and import Group III base oils and market both globally under the respective brand names Pure Performance and Ultra-S. It manufactures and markets graphite and anode-grade petroleum cokes in the United States and Europe for use in the global steel and aluminum industries. It also manufacture and market polypropylene to North America under the COPYLENE brand name. Its ThruPlus Delayed Coker Technology, a process for upgrading heavy oil into higher value, light hydrocarbon liquids, was sold in June 2011. In October 2011, it sold Seaway Products Pipeline Company to DCP Midstream. In December 2011, the Company sold its 16.55% interest in Colonial Pipeline Company and its 50% interest in Seaway Crude Pipeline Company. The Company manufactures and sells a variety of specialty products, including pipeline flow improvers and anode material for high-power lithium-ion batteries. Its specialty products are marketed under the LiquidPower and CPreme brand names.

The Company owns four refineries outside the United States: the Humber Refinery, Whitegate Refinery, Melaka Refinery and Wilhelmshaven Refinery. The Humber Refinery is located on the east coast of England in North Lincolnshire, United Kingdom. It is an integrated refinery, which produces a high percentage of transportation fuels, such as gasoline and diesel. Humber�� facilities encompass fluid catalytic cracking, thermal cracking and coking. The refinery has two coking units with associated calcining plants, which upgrade the heaviest part of the crude barrel and imported feedstocks into light oil products and graphite and anode petroleum cokes.

!

Th! e Whitegate Refinery is located in Cork, Ireland. The refinery primarily produces transportation fuels, such as gasoline, diesel and fuel oil, which are distributed to the inland market, as well as being exported to Europe and the United States. It also operate a crude oil and products storage complex consisting of 7.5 million barrels of storage capacity and an offshore mooring buoy, located in Bantry Bay, about 80 miles southwest of the refinery in southern Cork County.

The Mineraloelraffinerie Oberrhein GmbH (MiRO) Refinery, located on the Rhine River in Karlsruhe in southwest Germany, is a joint venture in which it owns an 18.75% interest. Facilities include three crude unit trains, fluid catalytic cracking, petroleum coking and calcining, hydrodesulfurization units, reformers, isomerization and aromatics recovery units, ethyl tert-butyl ether (ETBE) and alkylation units. MiRO produces a percentage of transportation fuels, such as gasoline and diesel. Other products include petrochemical feedstocks, home heating oil, bitumen, and anode- and fuel-grade petroleum coke. The Wilhelmshaven Refinery is located in the northern state of Lower Saxony in Germany, and has a 260,000 barrels-per-day crude oil processing capacity.

As of December 31, 2011, the Company had approximately 1,430 marketing outlets in its European operations, of which approximately 900 were Company-owned and 330 were dealer-owned. It also held brand-licensing agreements with approximately 200 sites. Through its joint venture operations in Switzerland, it also has interests in 250 additional sites.

Midstream

The Midstream segment purchases raw natural gas from producers, including ConocoPhillips, and gathers natural gas through pipeline gathering systems. Its Midstream segment is primarily conducted through its 50% investment in DCP Midstream. DCP Midstream also owns or operates 12 NGL fractionation plants, along with propane terminal facilities and NGL pipeline assets. It has a 25% inte! rest in R! ockies Express Pipeline LLC (REX).

Chemicals

The Chemicals segment consists of its 50% investment in CPChem. As of December 31, 2011, CPChem owned or had joint-venture interests in 38 manufacturing facilities. CPChem�� business is structured around two primary operating segments: Olefins & Polyolefins (O&P) and Specialties, Aromatics & Styrenics (SA&S). The O&P segment produces and markets ethylene, propylene, and other olefin products, which are primarily consumed within CPChem for the production of polyethylene, normal alpha olefins, polypropylene and polyethylene pipe. The SA&S segment manufactures and markets aromatics products, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers.

Advisors' Opinion:

• [By Maxx Chatsko]

  Phillips 66 (NYSE: PSX  )
  The refiner's top and bottom lines have exploded in recent years thanks to America's energy renaissance. Net income in 2012 was 461% higher than in 2010 and 766% higher than during the recession in 2009. That's incredible for a company of such size, but can it continue? Both sales and income slipped compared with 2011, and it seems as if the market is pricing in a continuing trend. The company trades with a P/E below 8 and a dividend yielding more than 2%, both potential steals for investors. Better yet, the profit margin in the first quarter of this year was 143% higher than that from the year ago period. It looks as if Phillips 66 can keep its profit machine going so long as domestic oil prices maintain their advantage on the international market.�

• [By Claudia Assis]

  Shares of refiner Phillips 66 (PSX) �were among the day�� top losers, down 0.7%.

Hot Oil Companies For 2014: Helmerich & Payne Inc (HP)

Helmerich & Payne, Inc., incorporated on February 29, 1944, is engaged in contract drilling of oil and gases wells for others and this business. The Company's contract drilling business is composed of three reportable business segments: U.S. Land, Offshore and International Land. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company's U.S. Land operations drilled in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Pennsylvania, Ohio, Utah, Arkansas, New Mexico, Montana, North Dakota and West Virginia. Offshore operations were conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea. During fiscal 2012, the Company's International Land segment operated in six international locations: Ecuador, Colombia, Argentina, Tunisia, Bahrain and United Arab Emirates. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Each of the businesses operates independently of the others through wholly owned subsidiaries. The Company's real estate investments located exclusively within Tulsa, Oklahoma, include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company's subsidiary, TerraVici Drilling Solutions, Inc. (TerraVici), is developing rotary steerable technology. As of September 30, 2012, it had 176 rigs under fixed-term contracts. During fiscal 2012, the Company leased a 150,000 square foot industrial facility near Tulsa, Oklahoma for the purpose of overhauling/repairing rig equipment and associated component parts.

U.S. Land Drilling

As of September 30, 2012, the Company had 282 of its land rigs available for work in the United States. During fiscal 2012, the Company's U.S. Land operations contributed approximately 85% of the Compan! y's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 89%. During fiscal 2012, the Company's fleet of FlexRigs had an average utilization of approximately 97%, while the Company's conventional and mobile rigs had an average utilization of approximately 11%. As of September 31, 2012, 231 out of an available 282 land rigs were working.

Off Shore Drilling

During fiscal 2012, the Company's Offshore operations contributed approximately 6% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 79%. During fiscal 2012, the Company had eight of its nine offshore platform rigs under contract and continued to work under management contracts for four customer-owned rigs. During fiscal 2012, revenues from drilling services performed for the Company's offshore drilling customer totaled approximately 56% of offshore revenues.

International Land Drilling

During fiscal 2012, the Company's International Land operations contributed approximately 9% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was 77%. As of September 30, 2012, the Company had nine rigs in Argentina. During fiscal 2012, the Company's utilization rate was approximately 52%. During fiscal 2012, revenues generated by Argentine drilling operations contributed approximately 2% of the Company's consolidated operating revenues. The Argentine drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had seven rigs in Colombia. During fiscal 2012, the Company's utilization rate was approximately 79%. During fiscal 2012, revenues generated by Colombian drilling operations contributed approximately 3% of the Company's consolidated operating revenues. During fiscal 2012, revenues from drilling services performed for the Company's customer in Colombia totaled approximately 1% of consolidated operating revenues and approximately 16% of inter! national ! operating revenues. The Colombian drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had five rigs in Ecuador. During fiscal 2012, the utilization rate in Ecuador was 97%. During fiscal 2012, revenues generated by Ecuadorian drilling operations contributed approximately 2% of consolidated operating revenues. As of September 30, 2012, the Company had two rigs in Tunisia, four rigs in Bahrain and two rigs in United Arab Emirates.

Advisors' Opinion:

• [By Eric Volkman]

  Relatively speaking, Helmerich & Payne's (NYSE: HP  ) new shareholder payout is a gusher. The company on Wednesday declared a big bump in its regular common stock dividend, to $0.50 per share for its Q3, up from $0.15.

• [By Dividends4Life]

  Helmerich & Payne Inc. (HP) is the holding company for Helmerich & Payne International Drilling Company, an international drilling contractor.
  Yield: 3.0% | Years of Dividend Growth: 41

• [By Seth Jayson]

  Helmerich & Payne (NYSE: HP  ) is expected to report Q3 earnings on July 26. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Helmerich & Payne's revenues will expand 3.1% and EPS will compress -2.2%.

• [By Richard Moroney, Editor, Dow Theory Forecasts]

  Helmerich & Payne (HP) has paid a dividend without interruption since 1959 and raised the distribution in 40 straight years.

  Following a pair of hikes in less than 12 months, Helmerich's quarterly dividend stands at $0.50 per share, compared to $0.07 per share a year ago.

Hot Oil Companies To Invest In 2014: Archer Ltd (ARCHER.OL)

Archer Ltd, formerly Seawell Limited is a Bermuda-based global oilfield service company. The Company provides drilling services, such as platform drilling, land drilling, modular rings, directional drilling, drill bits, tubular services, drilling and completion fluids, cementing tools, plugs and packers, underbalanced services, rentals and engineering. It specialises also in well services, such as wireline intervention, specialist intervention, frac valves, wireline logging, integrity diagnostics, imaging, production monitoring, coiled tubing, completion services and fishing. As of January 3, 2012, the Company's organizational structure centered on four geographic and strategic areas: North America (NAM), North Sea (NRS), Latin America (LAM) and Emerging Markets & Technologies (EMT). As of December 31, 2010, it was active through a number of subsidiaries, namely Seawell, Allis-Chalmers Energy, Gray Wireline, Rig Inspection Services and TecWel, among others.

Hot Oil Companies For 2014: Marathon Petroleum Corp (MPC)

Marathon Petroleum Corporation (MPC), incorporated on November 9, 2009, is a petroleum product refiners, transporters and marketers in the United States. The Company operates in three segments: Refining & Marketing, Speedway and Pipeline Transportation. Marathon Petroleum�� refining, marketing and transportation operations are concentrated in the Midwest, Gulf Coast and Southeast regions of the United States. MPC has two retail brands: Speedway and Marathon. Effective as of June 30, 2011, MPC was separated from Marathon Oil Corporation (Marathon Oil) and became an independent company in a spin-off transaction.

Refining & Marketing

The Company owned and operated six refineries in the Gulf Coast and Midwest regions of the United States with an aggregate crude oil refining capacity of approximately 1.2 million barrels per calendar day as of December 31, 2011. During 2011, its refineries processed 1,177 million barrels per day of crude oil and 181 mbpd of other charge and blend stocks. Its refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a range of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with fuel ethanol and ultra-low-sulfur diesel fuel, to heavy fuel oil and asphalt. Additionally, MPC manufacture aromatics, propane, propylene, cumene and sulfur.

The Company�� Garyville, Louisiana refinery is located along the Mississippi River in southeastern Louisiana between New Orleans and Baton Rouge. The Garyville refinery is configured to process heavy sour crude oil into products, such as gasoline, distillates, asphalt, polymer grade propylene, propane, isobutane, sulfur and fuel-grade coke. The Catlettsburg, Kentucky refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence! with the Ohio River. The Catlettsburg refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, cumene, petrochemicals, propane and propylene. The Robinson, Illinois refinery is located in southeastern Illinois. The Robinson refinery processes sweet and sour crude oils into products, such as multiple grades of gasoline, distillates, anode-grade coke, propane, butane and propylene.

MPC�� Detroit, Michigan refinery is located near Interstate 75 in southwest Detroit. It is the petroleum refinery operating in Michigan. The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products, such as gasoline, distillates, asphalt, slurry, propane, and propylene. Its Canton, Ohio refinery is located approximately 60 miles southeast of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, propane, slurry and roofing flux. Its Texas City, Texas refinery is located on the Texas Gulf Coast approximately 30 miles south of Houston, Texas. The refinery processes sweet crude oil into products such as gasoline, chemical grade propylene, propane, slurry and aromatics.

As of December 31, 2011, the Company owned and operated 62 light product and 21 asphalt terminals. In addition, it distributes through approximately 52 third-party light product and 12 third-party asphalt terminals in its market area. During 2011, marine transportation operations included 15 towboats, as well as 167 owned and 14 leased barges that transport refined products on the Ohio, Mississippi and Illinois rivers and their tributaries, as well as the Intercoastal Waterway. As of December 31, 2011, the Company leased or owned approximately 1,950 railcars of various sizes and capacities for movement and storage of refined products. In addition, it own 124 transport trucks for the movement of refined products.

The Company produces propane at all six of its! refineri! es. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles. The Company is also a producer and marketer of feedstocks and specialty products. Product availability varies by refinery and includes propylene, cumene, dilute naphthalene oil, molten sulfur, toluene, benzene and xylene. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles.

Speedway

The Company sells transportation fuels and convenience products in the retail market in the Midwest, primarily through Speedway convenience stores. The Speedway segment sells gasoline and merchandise through convenience stores that the Companu owns and operates, primarily under the Speedway brand. Speedway-branded convenience stores offer a range of merchandise, such as prepared foods, beverages and non-food items, including a number of private-label items. As of December 31, 2011, Speedway had 1,371 convenience stores in seven states.

Pipeline Transportation

The Company transports crude oil and other feedstocks to our refineries and other locations, delivers refined products to wholesale and retail market areas and includes, among other transportation-related assets, a majority interest in LOOP LLC, which is the owner and operator of the United States deepwater oil port. It owns common carrier pipeline systems through Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), both of which are wholly owned subsidiaries. These pipeline systems transport crude oil and refined products, primarily in the Midwest and Gulf Coast regions, to its refineries, its terminals and other pipeline systems. The Company�� MPL and ORPL wholly owned carrier systems consist of 1,707 miles of crude oil lines and 1,825 miles of refined product lines comprising 31 systems located in 11 states, as of Decem! ber 31, 2! 011. In addition, MPL leases and operates 217 miles of common carrier refined product pipelines.

The common carrier refined product pipelines include the owned and operated Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers refined products from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other refined product pipelines owned and operated by MPL extend from: Robinson, Illinois to Louisville, Kentucky; Robinson, Illinois to Lima, Ohio; Wood River, Illinois to Indianapolis, Indiana; Garyville, Louisiana to Zachary, Louisiana, and Texas City, Texas to Pasadena, Texas.

As of December 31, 2011, the Company had partial ownership interests in the pipeline companies that have approximately 110 miles of crude oil pipelines and 3,600 miles of refined products pipelines, including about 970 miles operated by MPL, which include Centennial Pipeline LLC (Centennial), Explorer Pipeline Company (Explorer), LOCAP LLC (LOCAP), LOOP LLC (LOOP), Muskegon Pipeline LLC (Muskegon) and Wolverine Pipe Line Company (Wolverine).

The Company holds a 50% interest in Centennial, which owns a refined products pipeline system connecting the Gulf Coast region with the Midwest market. The Company holds a 17% interest in Explorer, a refined products pipeline system extending from the Gulf Coast to the Midwest. It holds a 51% interest in LOOP, the owner and operator of the Louisiana Offshore Oil Port, which is a deepwater oil port capable of receiving crude oil from large crude carriers, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana. The Company holds a 60% interest in Muskegon, which owns a refined products pipeline extending from Griffith, Indiana to North Muskegon, Michigan. It hold a 6% interest in Wolverine, a refined prod! ucts pipe! line system extending from Chicago, Illinois to Toledo, Ohio.

Advisors' Opinion:

• [By Holly LaFon]

  His largest holdings are Cytec Industries Inc. (CYT), Vivus Inc. (VVUS), Marathon Petrol (MPC), Google Inc. Cl A (GOOG) and Liberty Media A (LINTA).

• [By Claudia Assis]

  Among a handful of gainers, Marathon Petroleum Corp. (MPC) �shares advanced 1.3%.

• [By Dan Caplinger]

  Before you conclude that a stock is fundamentally cheap based on its P/E ratio, though, you need to look not just at its current earnings but also at its future prospects. Often, especially with cyclical stocks, you'll find that P/E gives you the exact opposite message that you'd expect. Consider these examples:

  In the energy sector, oil giants ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) both have attractive P/E ratios of around 10. Yet looking forward, analysts don't expect either company to produce a lot of profit growth, as both companies have had to work extremely hard to avoid massive output declines stemming from falling production levels from their respective oil-field assets. As long as Exxon and Chevron can acquire new properties with lucrative prospects, they'll be able to keep revenue up, but it's far from certain whether they'll succeed in finding new discoveries. The cyclical trend is even more apparent in the refining industry. Marathon Petroleum (NYSE: MPC  ) and Phillips 66 (NYSE: PSX  ) have made huge share-price advances over the past year, as extremely wide spreads between crude oil prices in the U.S. and abroad have led to unusually high profits for refined-product sales. Now, though, analysts have increasingly concluded that a combination of rising costs, greater regulation, and narrowing spreads will lead to falling profits, making current P/Es based on trailing earnings artificially low if they turn out to be right. You can find similar trends in other industries as well. Even in the traditionally high-growth tech industry, many sector giants have seen their P/E ratios plunge as earnings growth has slowed to a standstill. Dell (NASDAQ: DELL  ) is one of the most notable of these companies, with explosive growth during the 1990s having given way more recently to the PC bust and concerns about the viability of its business model going forward. Its share price has fall

Hot Oil Companies For 2014: Imperial Oil Limited(IMO)

Imperial Oil Limited engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment engages in the exploration and production of conventional crude oil, natural gas, synthetic oil, and bitumen primarily in the Western Provinces, the Canada Lands, and the Atlantic Offshore. Its primary conventional oil producing asset includes the Norman Wells oil field in the Northwest Territories. The Downstream segment engages in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It owns and operates crude oil, and natural gas liquids and products pipelines in Alberta, Manitoba, and Ontario. The Chemical segment engages in the manufacture and marketing of various petrochemicals, including ethylene, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. As of De cember 31, 2010, Imperial Oil Limited had 1,204 million oil-equivalent barrels of proved undeveloped reserves; maintained a nation-wide distribution system, including 24 primary terminals, to handle bulk and packaged petroleum products moving from refineries to market by pipeline, tanker, rail, and road transport; and sold petroleum products through 1,850 Esso retail service stations, of which approximately 510 were company owned or leased. The company was founded in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited operates as a subsidiary of Exxon Mobil Corporation.

Advisors' Opinion:

• [By Arjun Sreekumar]

  Cost overruns and abandoned projects
  As a result of these factors, cost overruns have become quite common in Alberta. For instance, Imperial Oil (NYSEMKT: IMO  ) said it exceeded its cost estimates for the first phase of its Kearl bitumen mining facility by about C$2 billion.�And some companies have even decided to abandon expensive projects altogether.

• [By Caiman Valores]

  But as highlighted earlier Whitecap's Canadian light sweet crude is not as heavily discounted as Canadian heavy oil or bitumen. This does not leave it exposed to the same price risks and volatility as those companies that have a significant portion of their production made up by Canadian heavy oil and Bitumen, such as Husky Energy (HUSKF.PK), Suncor (SU), Imperial Oil (IMO) and Canadian Natural Resources (CNQ).

• [By Stephan Dube]

  Cold Lake's most notable producers:

  Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here.

  Athabasca's most notable producers:

Hot Oil Companies For 2014: Halliburton Company(HAL)

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Michael Flannelly]

  Analysts at Raymond James are optimistic that shares of Halliburton Company (HAL) will perform well going forward. As such, the analysts upgraded the oilfield services company early on Wednesday.

  The analysts upgraded HAL from “Market Perform” to “Outpeform” and see shares reaching $63. This price target suggests a 29% upside to the stock’s Tuesday closing price of $48.66.

  Raymond James analyst J. Marshall Adkins noted, ��ur continued optimism on 2014 North American E&P capex is a theme we’ve been consistently touting. As such, we’re upgrading the premier North American service company, Halliburton, to Outperform with a target price of $63. Our optimism is fueled by 1) upward bias to consensus EPS via North American operations, 2) upcoming Analyst day, and 3) option value in international turnaround.��/p>

  Halliburton shares were up a fraction during morning trading on Wednesday. The stock is up 40.47% year-to-date.

• [By Taylor Muckerman and Joel South]

  Several companies on the production side, such as Southwestern Energy (NYSE: SWN  ) and Sandridge Energy (NYSE: SD  ) , have begun addressing this problem. From a services standpoint, Halliburton (NYSE: HAL  ) is pioneering multiple, different applications that producers can choose from to both ease the stress on the environment and reduce overall costs.

• [By Tony Daltorio]

  The biggest oilfield service companies should get a big lift from the boom, Moors said. That includes Schlumberger Ltd. (NYSE: SLB), Halliburton Co. (NYSE: HAL), Weatherford International Ltd. (NYSE: WFT), and Baker Hughes Inc. (NYSE: BHI).

• [By Arjun Sreekumar]

  Halliburton
  In general, the rise in global E&P spending bodes well for the companies that provide the equipment and expertise necessary to exploit shale reserves. One company that's aptly positioned to profit is Halliburton (NYSE: HAL  ) , which, in addition to its dominant position in the U.S., also stands to benefit from the increase in E&P activity outside North America.

Hot Oil Companies For 2014: American Petro-Hunter Inc (AAPH)

American Petro-Hunter Inc., incorporated on January 24, 1996, is an oil and natural gases exploration and production company with projects in Kansas and Oklahoma. As of March 15, 2012, the Company has two producing wells in Kansas and six producing wells in Oklahoma. The Company also has rights for the exploration and production of oil and gas on an aggregate of approximately 6,230 acres in those states. On January 4, 2011, the Company announced plans to drill the NOS227 Well as a direct offset to the NOJ26 Well.

On March 25, 2011, the Company announced that the Company had acquired a working interest in an additional 2,000 acres located in Payne County in northern Oklahoma, near the Company�� Yale Prospect. The project has been named North Oklahoma Mississippi Lime Project. On May 16, 2011, the Company announced that drilling operations had commenced at the Company�� first horizontal well, NOM1H. The Company owns a 25% Working Interest in the lease. On June 29, 2011, the Company announced that NOM1H had begun commercial production. On July 18, 2011, the Company announced drilling plans for a total of 11 horizontal wells at the North Oklahoma Project. On July 20, 2011, the Company announced the acquisition of a 40% working interest in the South Oklahoma Project on 3,000 acres of land in south-central Oklahoma.

On February 6, 2012, the Company announced that the Company had drilled a total of 1,988 feet in the horizontal well segment penetrating into the 100 plus foot thick Mississippi pay zone. As of March 2012, there are nine locations left to drill on the acreage. The Company's crude oil production is sold to N.C.R.A. in MacPherson Kansas and Sunoco in Oklahoma. The Company sells natural gas through such pipeline to DCP Midstream, LP of Tulsa, Oklahoma.

Hot Oil Companies For 2014: Noble Corp (NE)

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (FPSO) located globally. As of December 31, 2011, its fleet consisted of 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Its fleet includes 11 units under construction, which include five ultra-deepwater drillships, and six jackup rigs. As of February 15, 2012, approximately 84% of its fleet was located outside the United States in areas, which included Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During the year ended December 31, 2011, it completed construction on the Noble Bully I, a drillship, owned through a joint venture with a subsidiary of Royal Dutch Shell plc; completed construction on the Noble Bully II, a drillship, and it completed construction of Globetrotter-class drillship. As of February 15, 2012, it had 10 rigs under contract in Mexico with Pemex Exploracion y Produccion (Pemex).

During 2011, the Company conducted offshore contract drilling operations, which accounted for over 98% of its operating revenues. It conducts its contract drilling operations in the United States Gulf of Mexico, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During 2011, revenues from Shell and its affiliates accounted for approximately 24% of its total operating revenues. During 2011, revenues from Petroleo Brasileiro S.A. (Petrobras) accounted for approximately 18% and 19% of its total operating revenues. Revenues from Pemex accounted for approximately 15%, 20% and 23% of its total operating revenues.

Semisubmersibles

Semisubmersibles are floating platforms which, by means of a water ballasting system, can be submerged to a predetermined depth so that a substantial portion of the hull is b! elow the water surface during drilling operations. As of December 31, 2011, the semisubmersible fleet consisted of 14 units, including five Noble EVA-4000 semisubmersibles; three Friede & Goldman 9500 Enhanced Pacesetter semisubmersibles; two Pentagone 85 semisubmersibles; two Bingo 9000 design unit submersibles; one Aker H-3 Twin Hull S1289 Column semisubmersible, and one Offshore Co. SCP III Mark 2 semisubmersible.

Drillships

The Company�� drillships are self-propelled vessels. These units maintain their position over the well through the use of either a fixed mooring system or a computer controlled dynamic positioning system. Its drillships are capable of drilling in water depths from 1,000 to 12,000 feet. The maximum drilling depth of its drillships ranges from 20,000 feet to 40,000 feet. As of December 31, 2011, the drillship fleet consisted of 14 units, including four drillships under construction with Hyundai Heavy Industries Co. Ltd. (HHI); three Gusto Engineering Pelican Class drillships; two Bully-class drillships to be operated by it through a 50% joint venture with a subsidiary of Shell; one dynamically positioned Globetrotter-class drillship that left the shipyard during the fourth quarter of 2011; one Globetrotter-class drillship under construction; one moored Sonat Discoverer Class drillship capable of drilling in Arctic environments; one NAM Nedlloyd-C drillship, and one moored conversion class drillship.

Jackups

As of December 31, 2011, the Company had 49 jackups in its fleet, including six jackups under construction. The rig hull includes the drilling rig, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. All of its jackups are independent leg and cantilevered. Its jackups are capable of drilling to a maximum depth of 30,000 feet in water depths up to 400 feet.

Submersibles

The Company has two su! bmersible! s in the fleet, which are cold-stacked. Submersibles are mobile drilling platforms, which are towed to the drill site and submerged to drilling position by flooding the lower hull until it rests on the sea floor, with the upper deck above the water surface. Its submersibles are capable of drilling to a depth of 25,000 feet in water depths up to 70 feet.

Advisors' Opinion:

• [By Matt DiLallo]

  What Seadrill does see for small and midsized companies is that these operators will look to sign short-term contracts for exploration drilling. Larger companies like BP will counterbalance this with long-term drilling campaigns. Overall, Seadrill expects oil companies to continue to increase their budgets and spending on ultra-deep water by double digits. The company sees a strong trend here which also bodes well for competitors such as Noble Corp (NYSE: NE  ) and Transocean (NYSE: RIG  ) .

• [By Claudia Assis]

  Noble (NE) , one of the world�� largest offshore drillers, said late Tuesday it would spin off its that may go public next year.

• [By Lauren Pollock]

  Offshore driller Noble Corp.(NE) disclosed a plan to split the company into two separate firms, potentially moving to file an initial public offering for a business that would own the company’s older rigs. Noble has been mulling a plan to shed some assets for a few years and even conceded the process to evaluate such a move was taking longer than expected.

• [By Michael Flannelly]

  Bernstein analysts downgraded drilling company Noble Corporation (NE) on Friday, as they believe the current industry cycle is likely beginning to end.

  The analysts downgraded NE from “Outperform” to “Market Perform” and see shares reaching $41. This price target suggests a slight upside to the stock’s Thursday closing price of $39.34.

  Noble shares were down 14 cents, or 0.36%, during pre-market trading on Friday. The stock is up 12.98% year-to-date.