Top 5 Value Stocks To Watch For 2014

Oil and gas income producer, LINN Energy (NASDAQ: LINE  ) , along with its affiliate LinnCo (NASDAQ: LNCO  ) , will report first-quarter earnings on April 25 before markets open. It's an important report for LINN which has been under the spotlight of short sellers that have questioned the company's true value proposition to investors. While the company has done a good jobs to alleviate investor concerns, the upcoming report needs to put them completely at ease. With that as context, here are three things I'll be watching for in the report.

The big deal
Last quarter LINN and LinnCo stunned the investment world by announcing a $4.3 billion deal to acquire Berry Petroleum (NYSE: BRY  ) . The all-stock deal is expected to close at the end of the second quarter. With a deal as large as this one, it's important to watch to make sure everything is still on track.

Top 5 Value Stocks To Watch For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Sam Collins]

  Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

  S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

  Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Top 5 Value Stocks To Watch For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Top 10 Growth Stocks To Invest In 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Roberto Pedone]

  Caterpillar (CAT) is staging a textbook breakout in May. Shares of heavy equipment maker haven't exactly been kind to investors year-to-date; CAT has barely broken even during a time when the broad market has been in a historic rally. But a textbook breakout should change that.

  CAT started forming an inverse head and shoulders pattern back in early April. The inverse head and shoulders is formed by two swing lows that bottom out around the same level (the shoulders), separated by a lower low called the head; the buy signal comes on the breakout above the pattern's "neckline" level, which was just below $86 for CAT. That puts this stock's upside target right around $92.

  Even though CAT has nearly hit its upside target already (the post-breakout buying has been very quick), the longer-term implication for investors is a break of the downtrend that had been haranguing shares this year. Now, with that downtrend broken, CAT should have more room to move higher. I'd just expect some consolidation first.

• [By Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

• [By Sam Collins]

  Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

  Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

  Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

Top 5 Value Stocks To Watch For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Michael]

  Schlumberger Limited (NYSE: SLB): Cramer also had more than $100,000 invested in SLB. As of Feb. 15, his charitable trust owns 1,300 shares for a total of about $100,724. SLB is also quite popular among hedge funds. At the end of last September, there were 42 hedge funds with SLB positions in their 13F portfolios. Ken Fisher was the most bullish hedge fund manager about SLB -- Fisher Asset Management had nearly $500 million invested in SLB at the end of the third quarter. Jim Simons’ Renaissance Technologies also invested nearly $200 million in this stock.

  Schlumberger has reasonable debt levels, growing net income and revenue, and healthy cash flow from operations. It is relatively expensive compared with its competitors though. SLB has a forward P/E ratio of 13.6. Its expected annual EPS growth rate is 21.82% on the average for the next five years, which means that its P/E ratio for 2014 will be around 9.2. This is quite low compared with the market, but not so versus its peers.

• [By Kathy Kristof]

  Headquarters: Houston
  
  52-Week High: $79.38
  
  52-Week Low: $56.86 
  
  Annual Sales: $39.5 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 
  
  With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

3 Things Investors Need to Know Going Into Today's Fed Meeting

U.S. stocks have posted gains in six of the last seven trading sessions, but they opened lower today, with the S&P 500 (SNPINDEX: ^GSPC  ) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES: ^DJI  ) down 0.39% and 0.5%, respectively, at 10:05 a.m. EDT.

Better Fed than red
All eyes on the Fed! The Federal Open Market Committee's regular two-day meeting begins today. The FOMC is responsible for setting U.S. monetary policy, including interest rates. Here are three things investors should keep in mind. If you only have time to read one, skip straight to No. 3:

1. The Fed will not raise rates at this meeting, nor anytime soon.
We know this is true because the Fed's stance on rates is well telegraphed. As the statement from the previous FOMC meeting indicated:

"In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

All of the conditions for maintaining a zero-interest-rate policy are easily met.

2. Bond-buying to continue. QE-infinity...and beyond!
The minutes of the last FOMC meeting showed the Fed was prepared to begin tapering its $85 billion per-month bond-buying program as early as this summer. With recent economic data coming in weaker than expected, it would not be surprising if the committee were to turn more dovish in this regard.

3. The attention you owe the Fed is inversely proportional to your investing time horizon and/or your value discipline.
If you're a stock trader with a short time horizon, you are driven by prices, therefore tracking the run-up to and outcome of a Fed meeting is critical. Long-term investors, on the other hand, can afford to take a much more nonchalant approach to these events, as they know their investing returns, measured over an equity-appropriate time horizon (i.e., 10 to 20 years), are a function of business fundamentals, rather than Fed policy.

As Berkshire Hathaway CEO Warren Buffett once declared: "I don't make guesses [regarding the economy], and when I do, I don't pay attention to myself. Charlie [Munger] and I never talk about macroeconomics." That doesn't appear to have harmed his results, and I suspect he would say the very same thing about monetary policy.

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Look Which Stocks Were the Dow's Worst in Today's Crash

Concerns about the Federal Reserve's eventual end to its quantitative easing program changed from a relatively orderly sell-off yesterday to slightly more panicked movements today. By the close, the Dow Jones Industrials (DJINDICES: ^DJI  ) plunged 354 points, the average's worst loss since November 2011. Not only did any single stock manage to avoid declining, but all 30 stocks posted declines of at least 1% or more, showing the depth of the negative sentiment that took over the market.

Given the way that investors have relied on the Fed throughout the market's long bullish run, it's not all that surprising to see the average pull back sharply on even the slightest hint that the Fed might stop doing what investors have been so happy to see for years. What is surprising, though, was that Disney (NYSE: DIS  ) was the biggest loser in the market, falling 3.7%. Despite the media giant's success with blockbuster films based on its Marvel acquisition, Disney has had to pay escalating amounts of money to secure the rights to broadcast sports on its ESPN channel, and a Wall Street analyst expects to see competition from other networks to try to capture the most popular sports leagues and sporting events. With expirations coming in its basketball and auto-racing contracts, ESPN could face challenges that would ripple throughout the media giant.

Intel (NASDAQ: INTC  ) also posted a sharp drop of about 3.25%. The stock's 25% gains since November left it poised for a pullback, but sellers are clearly ignoring Intel's prospects both in the mobile market and in its core PC business. With Intel finally gaining a place for its chips in a major mobile device, and with its recent moves to try to make PCs relevant again by emphasizing convenient form factors that blend full-power functionality and portability, investors shouldn't underestimate the chip giant's ability to regain its full strength in the semiconductor market.

Finally, although there was no lack of losing stocks in the broader market, gold mining companies took a huge hit in light of a plunge in the price of gold bullion that sent the yellow metal convincingly below the $1,300 per ounce level. Newmont Mining (NYSE: NEM  ) , Barrick Gold (NYSE: ABX  ) , and a host of other miners hit new 52-week lows, with Newmont falling 7%, and Barrick giving up 8%. If interest rates continue to rise, then the opportunity cost of owning gold will go up with them, making investors less prone to hold onto the metal, and potentially marking a long-term reversal in the more than decade-long bull market for gold.

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1 Company Left Exhausted After a Major Shopping Spree

Photo Credit: Flickr/Damian Gadal

After spending $19 billion to buy a couple of oil and gas companies, Freeport-McMoRan (NYSE: FCX  ) is understandably exhausted. In fact, the company has so exhausted its financial resources that it's looking to cut back its spending and is even planning to make a return or two. It hasn't helped matters that the company's profits have been pinched by low commodity costs, which is forcing Freeport to take a break from its free-spending ways.

Freeport currently has about $20.5 billion in total debt, which it's planning to reduce to $12 billion over the next three years. To get there, the company decided that it needed to be a bit more aggressive, in light of the fact that two of the top commodities it produces, copper and gold, fell in price and reduced its earnings. The company's plan now is to cut about $1.9 billion in capital cost reductions and project deferrals, as well as look to sell some of its assets.

The planned capital cost reductions are pretty broad-based:

Source: Freeport-McMoRan Investor Presentation (link opens a PDF)

What's most interesting to me is the planned capex reductions at its newly acquired oil and gas business as well as the asset it's planning to sell. Among the newly acquired assets is a solid position in the hot Eagle Ford Shale. While most of its peers are investing heavily in the play, Freeport will actually be pulling back on its capital. According to James Flores, the president of the oil and gas division, the company will be reducing its rig count to transition the asset to a focus on cash flow instead of growth.

This is a pretty radical change when you look at the numbers. Freeport is reducing its capex in the Eagle Ford by 20% which will shift the asset from one that was on pace to deliver 15% production growth to one that will actually decline 20%. However, in doing so the company will see a $600 million swing in cash flow.

Competitors like EOG Resources (NYSE: EOG  ) , for example, are instead relying on the Eagle Ford to deliver growth. In fact, much of EOG's 28% goal for production growth this year will be fueled by its Eagle Ford operations. The company is drilling 425 wells in the play this year and expects to continue at that pace for the next dozen years. What's different here is that in addition to the cash crunch, Freeport sees better growth opportunities elsewhere, as it has a strong position in the Gulf of Mexico, which EOG doesn't have.

Speaking of the Gulf, Freeport is actually looking to sell some of its lower-growth assets in the region in an effort to pay down its debt. In fact, according to CEO Richard Adkerson, the company has already initiated plans to sell some of its conventional oil and gas production on the shelf of the Gulf of Mexico. This move would follow on the heels of Apache's (NYSE: APA  ) , which recently announced a move to exit the Gulf's shelf.

Apache was able to get $3.75 billion for its shelf properties, while also keeping 50% of the upside of all the exploration blocks. That deal was a very good one for Apache because it was able to monetize a mature asset while also keeping some of the upside. The company is planning on using half of those proceeds on its own plan to pay down its debt. A similarly structured deal by Freeport would be welcomed news. 

In addition to selling some of its shallower Gulf of Mexico assets, Freeport is looking at other recently acquired oil and gas assets with which to part ways. The company's Madden natural gas assets in Wyoming, for example, could be one of the assets on the chopping block. Before Freeport bought Plains Exploration & Production, the plan had been to unload this non-operated natural gas asset. Freeport, which now holds the 14% interest in the gas field and an associated gas plant, could follow through on Plains' original plans and sell these assets. Madden is just one of Freeport's many options. 

While Freeport has exhausted its financial resources at the moment, there is no rest for the weary -- the company now needs to focus on shedding assets to go along with its cost reductions. With $1.9 billion in cost reductions already announced, Freeport has a nice head start. However, if commodity prices take a dive, the company might have to be even more aggressive in its approach. In the meantime, it's going to take advantage of high oil prices to sell some oil assets in the Gulf as well as milk the Eagle Ford for its oily cash flow. 

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Top 5 Clean Energy Companies To Invest In 2014

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some clean-energy-related stocks to your portfolio, the PowerShares WilderHill Clean Energy Portfolio ETF (NYSEMKT: PBW  ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The PowerShares ETF's expense ratio -- its annual fee -- is 0.70%. The fund is fairly small, too, so if you're thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF has performed�terribly, significantly underperforming the world market over the past three and five years. But the future counts more than the past, and it's been a rough few years for the entire solar energy industry, among others. And, as with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver. Indeed, stocks that have fallen sharply are sometimes great bargains.

Top 5 Clean Energy Companies To Invest In 2014: Indl Alliance Ins Com Npv(IAG.TO)

Industrial Alliance Insurance and Financial Services Inc., a life and health insurance company, engages in the provision of various insurance products, savings and retirement plans, and other financial products and services in the United States and Canada. The company offers various individual products and services, such as insurance products comprising life insurance, health insurance, disability insurance, and mortgage insurance products; and wealth management products, including registered retirement savings plans, non-registered retirement savings plans, registered education savings plans, tax free savings accounts, registered retirement income funds, life annuities, and fixed-term annuities, as well as segregated funds, mutual funds, and securities. It also provides various group insurance products consisting of employee plans, such as life and health insurance, accidental death and dismemberment, dental care insurance, short and long-term disability insurance, critic al illness insurance, home care insurance, and medical insurance; and creditor insurance products, such as life, disability, and critical illness insurance products to automobile and other motor vehicle dealers, and financial institutions. In addition, the company provides accidental death and dismemberment insurance, and other specialized insurance products to employers and associations, as well as travel and health insurance, and term life insurance to alumni associations and other affinity groups. Further, it offers mutual fund management, mutual fund brokerage, securities brokerage, trust services, investment management, and financial services brokerage. The company was formerly known as Industrial-Alliance Life Insurance Company and changed its name to Industrial Alliance Insurance and Financial Services Inc. in 2000. Industrial Alliance Insurance and Financial Services Inc. was founded in 1892 and is headquartered in Quebec City, Canada.

Top 5 Clean Energy Companies To Invest In 2014: Harris Corporation (HRS)

Harris Corporation, together with its subsidiaries, operates as a communications and information technology company that serves government and commercial markets worldwide. It operates in three segments: RF Communications, Government Communications Systems, and Broadcast Communications. The RF Communications segment designs, develops, and manufactures secure radio communications products and systems for manpack, handheld, soldier-worn, vehicular, strategic fixed-site, and shipboard applications that operate in various radio frequency bands. It also offers products and solutions ranging from wireless network infrastructure solutions to portable and mobile single-band and multiband radios, and public safety-grade broadband video and data solutions for the public safety, federal, utility, commercial, and transportation markets. The Government Communications Systems segment develops, supplies, and integrates communications and information processing products, systems, and netw orks for aerospace, terrestrial, and maritime applications supporting department of defense missions. This segment also provides mission-critical communications and information processing systems for the U.S. civilian Federal market, as well as offers IT transformation, managed, and information assurance solutions. The Broadcast Communications segment provides workflow, infrastructure, and networking solutions that enable media companies to streamline workflow from production through transmission; media solutions to manage digital media workflow through software solutions for advertising, media management, digital signage, broadband, digital asset management, and play-out automation; and transmission systems for delivery of media over wireless broadcast terrestrial networks. The company also offers healthcare IT solutions, IT compliance solutions, and mission-critical managed satellite communications services. Harris Corporation was founded in 1895 and is based in Melbourne, Florida.

Top Stocks To Own Right Now: CoreSite Realty Corporation(COR)

CoreSite Realty Corporation operates as real investment trust in the United States. The company engages in the ownership, acquisition, construction, and management of data centers. It provides data centers that optimize, secure, and interconnect the mission-critical IT assets of the organizations. The company offers private data centers and suites, cage-to-cabinet colocation, and interconnection services, such as Any2, CoreSite's Internet exchange. Its data centers are located in Los Angeles, the San Francisco Bay and Northern Virginia areas, Chicago, and New York City. The company provides its data centre services to enterprises, cloud providers, financial firms, and Government agencies. As of March 31, 2011, its property portfolio included 11 operating data center facilities, 1 data center under construction, and 1 development site. The company was founded in 2010 and is headquartered in Denver, Colorado.

Advisors' Opinion:

• [By Bryan Perry]

  CoreSite Realty Corp. (NYSE: COR) is structured as a REIT and is an owner, developer and operator of tactically positioned real estate, intended to meet the strict needs of the information technology community. It is one of the world’s biggest carrier-neutral suppliers of wholesale data center and co-location services, offering private data centers and suites, cage-to-cabinet co-location and interconnection opportunities.

  COR went public in the fall of 2010. Since the company is structured as a REIT, it must pay out at least 90% of net income to shareholders who, in turn, must pay ordinary income taxes on dividend income unless the shares are held in a retirement account.

  The two Wall Street analysts that cover the stock have the company earning a consensus 98 cents for 2011. That’s a 24% year-over-year growth rate in an economy forecast to grow by 2%. As such, if the company is set to pay out 90% of earnings, then we should see a forward dividend yield of around 6% for 2011, assuming earnings per share of roughly $1. COR currently yields 3.57%. Buy it up to $16.

Top 5 Clean Energy Companies To Invest In 2014: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors' Opinion:

• [By Putnam]

  Parker Hannifin (PH) operates in a broadly diversified engineering industry with peers such as General Electric (GE) and 3M Company (MMM). Its products serve aerospace, commercial, mobile and industrial markets.

  The 2011 fiscal year was stellar for Parker. An all time record of $12.3 billion in sales was reached, a 23.5% increase. Net income increased a whopping 90%.

  The common stock currently trades at a price to earnings ratio of 10.5, below the industry average of 14.8 and historical average of 14. Price to book ratio is 2.02 with price to cash flow being 7.3.

  Making comparisons in a broadly diversified industry is difficult, since products and service offerings vary greatly between businesses. Therefore, the peer company’s business lines and products were used as the main selection criteria for peer analysis.

Top 5 Clean Energy Companies To Invest In 2014: Trustmark Corporation(TRMK)

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

The Truth About Ford's Recalls

Ford's Michigan Assembly Plant. Photo Courtesy of Ford.

Last Friday The Detroit News reported the latest in Ford's (NYSE: F  ) round of vehicle recalls, noting that it would call back 465,000 vehicles for leaky fuel tanks and fire risks. Unfortunately for the Detroit automaker, it isn't the first issue that has made headlines over the last year as Ford's Escape and Fusion have been involved in numerous recalls.

However, if you were a general reader and glanced at these headlines you'd expect Ford to be near the top of vehicle recalls by manufacturer, but that's far from the truth. I dug deeper into past recall numbers, and was surprised at what I found.

By the numbers
I bet you'd be surprised to hear that in 2012 General Motor's (NYSE: GM  ) and Ford's vehicle recalls combined were less than Toyota's (NYSE: TM  ) or Honda's (NYSE: HMC  ) . Toyota took the top spot with 5.3 million vehicles recalled last year, which was nearly 2 million more than its Japanese rival Honda at 3.4 million. Ford and GM came in with significantly fewer recalls at 1.4 and 1.5 million, respectively. That's not an unusual result either; take a look at the graph below for cumulative recalls over the last three years:

Involved in Ford's recent recall of 465,000 vehicles are the 2013 Explorer, Taurus, Flex, and Fusion as well as the Lincoln MKS, MKT, and MKZ models. According to Detroit News, Ford received about 600 complaints of fuel leaks by the end of March. With the leaks a potential cause of fires, there's no doubt that this is an important issue to fix proactively, before a mandated recall, as Ford is doing. 

To help put the number of recalled vehicles in perspective, here is another recent recall for comparison. In January, Toyota recalled 1.29 million vehicles for two defects. Over 907,000, mostly Corolla models, were recalled for faulty air bags and 385,000 were recalled for defective wipers. While I'm sure the wiper issue won't cause uproar, Toyota had another string of airbag recalls in April where it had to hunt down an additional 170,000 vehicles for defective airbags.

Consumers obviously care about quality and recall issues, and it will take time for Detroit automakers to earn back the public's trust after years of poor-quality vehicles. By the same reasoning, we can't expect people to forget years of high-quality imports even though the last few years have been rough for Toyota and Honda. One thing is for sure: Ford and GM are making better vehicles than they were before the recession, and that's been proven by significantly lower recall numbers and increasing market share.

In addition to the lowered recall numbers lately, Ford is also handling these recalls extremely well. At the consumer level, it's almost gone unnoticed as Ford has voluntarily recalled this last batch of vehicles, notified the customers promptly, and offered to repair them free of charge.

That's largely why consumers have shrugged off the recall headlines while shopping at the nearest Ford dealership. For proof of that, the Fusion and Escape have combined for multiple recalls yet have set four straight months of record sales.

Bottom line
As mentioned earlier, last year Ford recalled 1.4 million vehicles and so far this year it's recalled a little over 700,000. Only time will tell how the rest of the year plays out with recalls, but Ford's CEO Alan Mulally said that the automaker was focused on quality and that Ford has learned something form each recall.

As long as that last statement holds true, and Ford continues to deal with issues quickly and effectively, it won't stir up much more than a headline or two. The truth is that Ford and GM aren't living up to the old stereotypes of making poor-quality vehicles that results in massive recalls – and that's a welcome headline for investors and consumers alike. 

If you're concerned that Ford's turnaround has run its course, relax – there's good reason to think that the Blue Oval still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place – click here to get started now.

8 Fascinating Reads

Happy Saturday! There are more good news articles, commentaries, and analyst reports on the Web every week than anyone could read in a month. Here are eight fascinating ones I read this week.

How to read smarter
Reading is a skill. The blog Farnam Street shares a tip from the book The Little Book of Talent: 52 Tips for Improving Your Skills on how to become a better reader: 

Research shows that people who follow strategy B [read ten pages at once, then close the book and write a one page summary] remember 50 percent more material over the long term than people who follow strategy A [read ten pages four times in a row and try to memorize them]. This is because of one of deep practice's most fundamental rules: Learning is reaching. Passively reading a book -- a relatively effortless process, letting the words wash over you like a warm bath -- doesn't put you in the sweet spot. Less reaching equals less learning.

One way to get it done 
Charlie Munger grew a publishing company with his investing chops: 

Daily Journal Corp., the California publisher that counts Charles Munger as its chairman, more than tripled in value since 2008 after the company jumped into stocks during the financial crisis.

Best known as Warren Buffett's longtime business partner, Munger began accumulating equities in early 2009 at the Daily Journal. The portfolio was worth $112.3 million as of March 31, or about 65 percent of the Los Angeles-based publisher's current market value ...

Munger's investments were disclosed in a May 2009 filing under the headline, "Liquidity and Capital Resources." The section outlined how the publisher was sitting on about $9 million in gains after spending $15.5 million on common stocks.

The results kept getting better. Three months later, the Daily Journal said the holdings were valued at more than $41 million. By the end of September of that year, they appreciated to almost $48 million.

Had enough 
From CNet, Facebook (NASDAQ: FB  ) is having a harder time holding down talent: 

Facebook executives and senior staffers have been saying goodbye to the social network at a speedy rate ever since its May 2012 initial public offering.

In the past few days alone, head U.S. sales guy Tom Arrix and Gowalla co-founder Josh Williams have said they're headed for the exits. Sure, Facebook, with 4,900 employees, should be forgiven for some expected turnover, but when the top brass bow out in successive fashion, some without rhyme or reason, you can safely bet that it's not all sunshine and rainbows inside the world's largest social network.

Human nature
Yale economist Robert Shiller says bubbles are here to stay: 

Because bubbles are essentially social-psychological phenomena, they are, by their very nature, difficult to control. Regulatory action since the financial crisis might diminish bubbles in the future. But public fear of bubbles may also enhance psychological contagion, fueling even more self-fulfilling prophecies.

One problem with the word bubble is that it creates a mental picture of an expanding soap bubble, which is destined to pop suddenly and irrevocably. But speculative bubbles are not so easily ended; indeed, they may deflate somewhat, as the story changes, and then reflate.

Up-to-the-minute
Mark Schneider in Financial Times has an idea: No more quarterly reports from companies. Instead, financial results should be presented continuously, in real time: 

Increasing the speed of reporting can deliver other benefits to both investors and companies. Businesses would benefit from improved internal financial controls as a result of a streamlined reporting structure. The timeliness of operating decisions would improve with more frequent disclosures. Investors would benefit from tighter financial management.

Gone would be some of the accounting games of the past -- such as the loading of sales into the last business days of a quarter. Yes, commercial practices vary between industries, but still a company with a steeper sales incline at quarter-end than its peers would have some explaining to do. The overall financial industry would also ultimately benefit from a smoother process of sharing information and building expectations.

Overexposed
TD AMERITRADE  (NYSE: AMTD  ) clients had a big exposure to Apple (NASDAQ: AAPL  ) stock on margin: 

One-third of the multi-billion dollar margin balances at TD Ameritrade are in accounts that have more than 25 percent market exposure to Apple.

"Our most widely held stock, our most actively traded stock and our most margined stock is Apple," TD Ameritrade Chief Executive Fred Tomczyk said on a conference call to discuss the firm's quarterly earnings report.

"A very large company that makes up a big part of our margin book has not participated in this rally over the last year."

Bucking the trend
The newspaper industry has tried to stay alive by slashing costs. The Orange County Register did the opposite, and it's thriving:

Conventional media wisdom posits several ways for a newspaper to commit suicide. It can drive up costs by multiplying staff and pagination. It can prioritise print over digital. It can erect a hard paywall to seal itself from the Internet.

Or, if you are the Orange County Register, you can do all three. The California daily did so almost exactly a year ago, prompting astonishment and morbid curiosity. How long would it last? In a crisis-stricken industry more accustomed to death by a thousand cuts, the Register, which dates back a century, at least promised a dramatic and original demise.

But this week, as the paper prepares to celebrate the experiment's first anniversary, it appears to be thriving. "It's working," marvelled the editor, Ken Brusic. "We believe that this will work."

Innovation 
Watch this fascinating video about a new high-speed engine technology:

Enjoy your weekend. 

For more big picture content, check out my report, "Everything You Need to Know About the National Debt." It walks you through step-by-step explanations about how the government spends your money, where it gets tax revenue from, the future of spending, and what a $16 trillion debt means for our future. Click here to read it. 

Why TripAdvisor Shares Took Off

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 travel website operator TripAdvisor (NASDAQ: TRIP  ) soared 15% today after its quarterly results easily topped Wall Street expectations.

So what: The stock has soared over the past year on a string of market-beating quarters, and today's Q2 results -- earnings spiked 26% on a 7% revenue increase -- are forcing analysts to up their growth estimates yet again. While that top-line growth might seem tame for a highflier, revenue from cost-per-click advertising -- which accounts for 74% of TripAdvisor's business -- surged 21% during the quarter.   

Now what: In a conference call with analysts, management reaffirmed full-year guidance of revenue growth in the low-20's. "We are very pleased with the positive user feedback on our new Meta Display and have made great progress driving more clicks and helping partners better determine their bidding efficiencies," said CFO Julie Bradley on the call. Of course, with the stock now up a whopping 150% over its 52-week lows and trading at a forward P/E of 30, I'd wait for some of the excitement to fade before buying into that operating momentum.

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

Hot Penny Stocks To Own For 2014

Planning for retirement is one of the hardest money issues people face, as the uncertainties of dealing with a goal that's years or even decades away are hard to navigate. In this edition of our Motley Fool Conversations series, Fool personal finance expert Dayana Yochim and retirement-planning analyst Dan Caplinger discuss retirement calculators and the ways that many people use them to try to find some answers to their questions of how much to save and how to invest.

Dayana notes how retirement calculators allow you to run any number of scenarios to help you plan your retirement. But as Dan points out, the to-the-penny answers that retirement calculators produce don't accurately reflect the bumpiness of real-life investing results, which inevitably include bumps and dips along the way.

Hot Penny Stocks To Own For 2014: Kenexa Corporation(KNXA)

Kenexa Corporation, together with its subsidiaries, provides software-as-a-service solutions that enable organizations to recruit, retain, and develop employees. The company offers talent acquisition solutions, such as recruitment technology systems that locates and tracks talented candidates; onboarding solutions, which provide form management for legal documents, workflow, and electronic signatures; employee assessments that help organizations to select and retain top performers; and skills tests, which enable organizations to identify and select talented candidates. Its talent acquisition solutions also include Kenexa Interview Builder system that provides an online structured interview reference library of approximately 3,000 questions; employment branding solutions; and recruitment process outsourcing (RPO) solutions, which offer global recruitment services. The company also provides talent retention solutions comprising performance management solutions that integrate performance management, compensation management, career development, goal alignment, and succession planning; employee surveys; learning management solutions, which enable organizations to deliver and track employee learning; leadership solutions, including leadership audit, leadership assessments, and leadership development solutions; CompAnalyst suite of compensation management solutions; and consumer solutions that provide compensation-focused tools and content. It serves financial services and banking, manufacturing, government, life sciences, biotechnology and pharmaceuticals, retail, healthcare, hospitality, call centers, and education industries. Kenexa Corporation operates primarily in the United States, the United Kingdom, Germany, the Netherlands, Canada, China, and other European countries. The company was formerly known as TalentPoint, Inc. and changed its name to Kenexa Corporation in November 2000. Kenexa Corporation was founded in 1987 and is headquartered in Wayne, Pennsylvania.

Hot Penny Stocks To Own For 2014: Ritchie Bros. Auctioneers Incorporated(RBA)

Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada.

Best Investments For 2014: Sport Chalet Inc.(SPCHB)

Sport Chalet, Inc. operates specialty sporting goods stores in California, Nevada, Arizona, and Utah. Its stores offer traditional sporting goods merchandise, including footwear, apparel, and other general athletic products; and core specialty merchandise, such as snowboarding, skateboarding, mountaineering, and scuba. The company?s stores also offer various services for the sports enthusiast, including backpacking, canyoneering and kayaking instruction, custom golf club fitting, snowboard and ski rental and repair, scuba training and certification, scuba boat charters, team sales, racquet stringing, and bicycle tune-up and repair. As of July 3, 2011, it operated 54 store locations; and an online store at sportchalet.com. The company was founded in 1959 and is based in La Ca�da, California.

These Tech Winners Defied the Dow's Losses

Why Silicom Shares Plunged

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 Silicom (NASDAQ: SILC  ) plunged today by as much as 12% after the company reported earnings.

So what: Revenue in the quarter added up to $15.7 million, with non-GAAP earnings per share of $0.48. Both figures topped consensus estimates of $15.5 million in sales and $0.40 per share in adjusted profit, but still weren't enough for investors.

Now what: The company said it scored two major deals, one with an existing customer and another with a new customer. The deals weren't enough to impress investors, though. Maxim Group downgraded its rating on Silicom from "buy" to "hold" following the results, but it was defended at Zacks.

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

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

 

Today's 3 Best Stocks

True to a Seinfeld episode, bad news means rising stock prices in today's bizarre trading environment.

The reason for the modest upside in the broad-based S&P 500 (SNPINDEX: ^GSPC  ) today came from June's U.S. retail sales figures, which, including and excluding autos, came in worse than expected (0.4% with, 0.1% excluding). Under normal circumstances, and using logic, lower retail sales are a bad thing! Consumer spending accounts for roughly 70% of U.S. GDP, and weaker retail sales figures would signify that consumers are holstering more of their disposable income.

The reason the market perceives this as good news is that it gives the Federal Reserve little impetus to scale back its monetary easing program known as QE3. This goes back to the vicious catch-22 that I alluded to weeks ago whereby we're darned if we do, darned if we don't,depending on what the Fed does next.

Despite what I feel are clear and present long-term concerns, the S&P 500 edged higher by 2.31 points (0.14%), to close at yet another new record, 1,682.50 – the S&P 500's eighth straight up day, and its 12th in the past 14 trading sessions.

Topping the biggest gainers today within the S&P 500 is solar panel producer First Solar (NASDAQ: FSLR  ) , which jumped 5.5% after a Bloomberg report noted China's intentions of beefing up its solar capacity to 35 gigawatts by 2015 in order to support domestic solar manufacturers. The news has more of an effect on First Solar's Chinese counterparts, but sheds even more light on just how decisively First Solar is beating up its Chinese counterparts. With stronger pricing power, and a balance sheet that's in much better shape than nearly all Chinese solar panel producers, First Solar still looks like a winner in this sector.

Shares of upscale jewelry chain Tiffany (NYSE: TIF  ) sparkled, up 3.6%, after Stifel Nicolaus analyst David Schick boosted his rating on Tiffany to buy, from hold, and initiated a price target of $92. The new price target would imply upside potential of 19% based on Friday's closing value. Specifically, Schick believes Tiffany will feel an uptick in its U.S. operations as consumers feel wealthier, and believes a better mix of fashion/color gemstone jewelry will help sales. I certainly agree with Mr. Schick that Tiffany represents a consumer niche that few can rival, but I'm not ready to give the jewelry industry a clean bill of health just yet.

Finally, Sprint (NYSE: S  ) , which has shed the "Nextel" part of its name following its buyout by SoftBank, added 4.2% on the day, fueled by investors' high hopes with consolidation in the sector increasing. Over the weekend, AT&T announced a $1.2 billion all-cash purchase of Leap Wireless to get a hold of its approximately 7 million members. Although no more M&A activity can be expected for Sprint at this point, the potential for M&A hiccups for AT&T in terms of assimilating Leap's customers, and in transitioning them from Leap's outdated network to its growing 4G LTE network, could give Sprint the opportunity to step in and take customers.

These three companies may be heading higher on some beneficial short-term news, but the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Why Nash-Finch and Spartan Stores Popped

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 Nash-Finch (NASDAQ: NAFC  ) and Spartan Stores (NASDAQ: SPTN  ) jumped as much as 16% and 15%, respectively, after Spartan said it would buy Nash-Finch, primarily for its military stores.

So what: Spartan will pay approximately $312 million in the all-stock transaction, as Nash-Finch shareholders will get 1.2 Spartan shares for every Nash-Finch share they own. The deal will give it a food distribution business as well as a stronghold in military retail, covering commissaries in 37 states and exchanges in foreign countries. Notably, the deal didn't give a premium for Nash shares, but it will become more valuable if Spartan shares continue to rise. The deal is expected to close by the end of the year, and management said it should enable $50 million in cost savings by its third year.

Now what: With the steady stream of consolidation in the grocery industry, it's easy to see why the market views the deal as a win-win. It will strengthen Spartan's presence in the Upper Midwest as well as giving it access to the military market. Shares cooled off after the initial pop to finish up between 3% and 4%, which seems more reasonable, as the earlier 16% spike was probably exaggerated for an acquisition without a premium. Look for these two stocks to travel in tandem from now until closing, as the value of Nash shares is now tied to Spartan.  

Will These Numbers from Cheesecake Factory Be Good Enough for You?

Cheesecake Factory (Nasdaq: CAKE  ) is expected to report Q2 earnings on July 24. 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 Cheesecake Factory's revenues will grow 4.2% and EPS will grow 11.8%.

The average estimate for revenue is $473.7 million. On the bottom line, the average EPS estimate is $0.57.

Revenue details
Last quarter, Cheesecake Factory recorded revenue of $463.0 million. GAAP reported sales were 6.3% higher than the prior-year quarter's $435.8 million.

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

EPS details
Last quarter, EPS came in at $0.47. GAAP EPS of $0.47 for Q1 were 27% higher than the prior-year quarter's $0.37 per share.

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

Recent performance
For the preceding quarter, gross margin was 42.7%, 20 basis points better than the prior-year quarter. Operating margin was 8.1%, 120 basis points better than the prior-year quarter. Net margin was 5.5%, 70 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.91 billion. The average EPS estimate is $2.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 516 members out of 646 rating the stock outperform, and 130 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give Cheesecake Factory a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is outperform, with an average price target of $36.63.

With hundreds of companies out there vying with Cheesecake Factory for shoppers' dollars, strong brands matter, and they can provide growth for even boring, mature companies -- as long as they're the right ones. That's why we've compiled a special report on "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

Add Cheesecake Factory to My Watchlist.

The $100 Billion Bankruptcy

On this day in economic and business history ...

On July 21, 2002, WorldCom declared what was at the time the largest bankruptcy in American history, with $107 billion in recorded assets. The story of one of the largest telecom companies in the United States thus drew to a disgraceful close. That story, as is often the case with monstrous bankruptcies, is riddled with scandal, fraud, and executives desperately trying to maintain their weakening grasp on great wealth and power. Let's get started with the early years, as the Daniels Fund Ethics Initiative explores WorldCom's rise:

The story of WorldCom began in 1983 when businessmen Murray Waldron and William Rector sketched out a plan to create a long-distance telephone service provider on a napkin in a coffee shop in Hattiesburg, Miss. Their new company, Long Distance Discount Service (LDDS), began operating as a long distance reseller in 1984. Early investor Bernard Ebbers was named CEO the following year. Through acquisitions and mergers, LDDS grew quickly over the next 15 years. The company changed its name to WorldCom, achieved a worldwide presence, acquired telecommunications giant MCI, and eventually expanded beyond long distance service to offer the whole range of telecommunications services. WorldCom became the second-largest long-distance telephone company in America, and the firm seemed poised to become one of the largest telecommunications corporations in the world.

It's an inspiring story, but what happened? WorldCom's spectacular rise, particularly during the 1990s during the dot-com bubble, was largely fueled by acquisition. Between 1991 and 1997, WorldCom acquired dozens of companies for a cumulative $60 billion, which resulted in $41 billion in debt.

WorldCom's $37 billion MCI acquisition, made public at the end of 1997, capped off this merger mania in an all-stock transaction that was then the largest corporate combination in American history. It also brought new problems for WorldCom -- combining large companies successfully is a difficult process, and it can easily be bungled if executives lack the will or the capacity to manage the melding of two corporate cultures into one coherent business. WorldCom CEO Bernie Ebbers was not the man to manage that merger. He was busy leveraging his WorldCom stock, which would make him a billionaire within two years, to finance other business interests as diverse as a lumber mill, a Louisiana rice farm, a luxury yacht company, and a minor-league hockey team.

WorldCom had massaged the accounting of its many acquisitions to show more profit growth than was actually taking place. A rising stock price greased the gears of this acquisition merry-go-round, allowing WorldCom to purchase more companies, massage more earnings, and continue presenting the investing world with a picture of consistent momentum. A planned $129 billion buyout of what is now Sprint Nextel (NYSE: S  ) that would have created the largest telecom company in America was scrapped because of regulatory opposition. Shortly thereafter, the dot-com bubble burst, and WorldCom's shares fell along with all the others, damaging its chances of securing that next big deal. Its merry-go-round of profit growth had finally stopped -- and lacking a mobile business, WorldCom was ill prepared for the shift away from landlines that was already under way.

The fall of WorldCom's stock price also caused problems for Bernie Ebbers, whose WorldCom shares were often used as leverage to purchase more WorldCom shares, creating a potentially devastating chain of margin calls. Ebbers pressured WorldCom's board to loan him $408 million at below-market rates, to cover his margin calls and avoid the damage a major stock sale by the company's CEO would do to WorldCom's share price and reputation. They didn't consider the possibility that WorldCom accountants, under Ebbers' direction, had been cooking the books to create a far more damaging situation.

Beginning with the 1999 fiscal year, WorldCom executives began using more aggressive accounting shenanigans, to maintain a picture of business growth and thus to prop up its stock price. In the three years before its bankruptcy, WorldCom overstated its income by $9 billion and also manipulated its cash flows by misreporting $3.8 billion in capital expenditures in 2001 and 2002.

A small group of WorldCom employees, led by internal auditor Cynthia Cooper, became whistleblowers after discovering a number of irregularities on WorldCom's books. This was not long after Enron's bankruptcy shone a harsh light on WorldCom (and Enron) accounting firm Arthur Andersen, and Cooper's team was not particularly willing to take that firm's assertions at face value. Shortly after Cooper exposed the problem to WorldCom's board, Ebbers resigned, and Arthur Andersen was convicted of obstructing justice in the Enron case. WorldCom, unable to hide the truth, announced its intention to make a major restatement of earnings on June 25, 2002, and the SEC filed charges against WorldCom the following day. Cooper later became one of Time's three People of the Year in an issue celebrating "the whistleblowers."

All told, the total value of WorldCom's accounting fraud was later estimated at nearly $80 billion . The bankrupt company later agreed to pay a $2.25 billion civil penalty to the SEC, which effectively took control of WorldCom by consent decree in 2003. In 2006, Bernie Ebbers was sentenced to 25 years in a Louisiana prison for his role in the fraud, and he will be ineligible for parole until 2028, when he will be 87 years old. Verizon (NYSE: VZ  ) purchased what remained of WorldCom for $6.7 billion  in 2006, and it now serves as Verizon's business telephony division.

Connecting East and West
The Trans-Siberian Railway was officially completed on July 21, 1904. Conceived in the 1870s, the plan for a rail link across the vast Russian nation almost stalled after the assassination of Czar Alexander II, its prime advocate. Restarted in 1886, the railway's construction got under way in 1891, and for over a decade laborers battled landslides, armed bandits, disease, and the occasional tiger attack to connect the Eastern and Western ends of Russia. When completed, its primary line, from Moscow to Vladivostok, became the longest continuous railway in the world at more than 5,700 miles. Two longer lines have since been built, but both rely on the Trans-Siberian's original tracks for much of their routes.

Down goes the Dow
On July 21, 1933, one day after its wildest day in years, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) fell by 7.8%, dismaying bulls who had been expecting a rebound. Volume, at 9.6 million shares , was the fourth-highest in the history of the New York Stock Exchange and the largest since the massive rally that followed Black Monday and Black Tuesday in 1929, but no one really had an answer as to why such a violent stampede took place. Panicky European investors were blamed, as were the same old saws of the previous day -- margin calls, a wholesale reevaluation of the speculative "liquor stocks," and the fear of a regulatory noose that might soon tighten around Wall Street.

President Franklin D. Roosevelt's administration said that no action would be taken in response to the two-day drop. The Los Angeles Times reported:

In official quarters the opinion was expressed that if speculators and investors are sully enough to bid up stocks far above their value they are very apt to lose their money. In official quarters, the view was expressed that many people attach undue importance to fluctuations in stock prices.

Two days of heavy losses had shaved nearly 15% off of the Dow, but this proved to be a rather short-lived correction. The bull market that had begun a year earlier, but which had really kicked in following Roosevelt's inauguration, would continue until 1937, tacking another 120% of gains onto the Dow from the end of July 21, 1933.

Millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, too scared to invest and put their money at further risk. Yet those who've stayed out of the market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

5 Best Tech Stocks To Own Right Now

Despite a spike following the release of the Federal Reserve minutes this afternoon, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) wasn't able to hang on to the gains, ending the day down a hair, off 8 points, or 0.06%. Investors reacted favorably to the Fed's Open Market Committee observations from its June meeting, even as the minutes showed that a number of central bank members favor beginning to taper its monthly bond-buying program starting this year. However, the bankers also acknowledged that more improvements in the job market are needed before the Fed can take away the stimulus program, an encouraging sign for investors who believe the Fed may be pulling the plug too soon on the fragile recovery.

Hewlett-Packard (NYSE: HPQ  ) topped Dow stocks today, gaining 1.8% and hitting a new 52-week high after receiving an upgrade from Citigroup to "buy" all the way from "sell," as analyst Jim Suva endorsed the PC-maker's turnaround strategy, saying it had cut $3 billion in costs through employee layoffs and was moving away from past failed strategies. Ironically, the upgrade came on the same day as tech research firm Gartner reported that worldwide PC shipments drop 11% in the second quarter, the fifth consecutive quarter of declines. In total, 76 million PCs were shipped, down from 85 million a year ago, and Lenovo narrowly beat out HP for the top spot. Facing the inevitable decline of the computer, HP has focused on enterprise and services as a way to drive profit growth.

5 Best Tech Stocks To Own Right Now: MoSys Inc.(MOSY)

MoSys, Inc., together with its subsidiaries, designs, develops, markets, and licenses embedded memory intellectual property (IP) for systems on chips (SOCs) designs. It provides a semiconductor memory technology, 1T-SRAM, which offers a combination of high density, low power consumption, and high-speed; and licenses this technology to companies that incorporate or embed memory on integrated circuits (ICs), such as system-on-chips. The company also designs, develops, markets, and licenses high-speed parallel and serial interface IP that includes physical layer circuitry, which allows ICs to communicate with each other or to discrete memory devices in networking, storage, computer, and consumer devices. Additionally, it supports serial I/O technologies, such as 10G KR, XAUI, PCI Express, and SATA, as well as parallel interfaces comprising DDR3. MoSys, Inc. offers its memory and I/O IP technologies to semiconductor companies, electronic product manufacturers, foundries, intel lectual property companies, and design companies through product development, technology licensing, and joint marketing relationships. It operates in Japan, the United States, Taiwan, and rest of Asia. The company was founded in 1991 and is headquartered in Santa Clara, California.

5 Best Tech Stocks To Own Right Now: DAQQ New Energy Corp.(DQ)

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon in China. The company sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions. It also produces and sells mono-crystalline and multi-crystalline modules to photovoltaic system integrators and distributors in China and internationally under its Daqo brand. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is headquartered Wanzhou, the People?s Republic of China.

Advisors' Opinion:

• [By Kevin1977]

  DAQQ New Energy Corp.(NYSE: DQ) closing price in the stock market Tuesday, Jan. 3, was $1.84. DQ is trading -4.75% below its 50 day moving average and -59.53% below its 200 day moving average. DQ is -87.71% below its 52-week high of $14.97 and 30.50% above its 52-week low of $1.41. DQ‘s PE ratio is 0.60 and its market cap is $64.66M .

  DAQQ New Energy Corp. manufactures and sells polysilicon in China together with its subsidiaries. DQ sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions.

Top Stocks To Watch Right Now: OPNET Technologies Inc.(OPNT)

OPNET Technologies, Inc. provides application and network performance management solutions in the United States and internationally. It offers AppCapacity Xpert to provide capacity planning for servers; AppInternals Xpert to extract performance and forensic data; AppMapper Xpert to produce run-time application maps; AppResponse Xpert to monitor and analyze end-user experience for various users and transactions; AppSQL Xpert to track database usage; AppTelemetry Xpert to capture performance information; and AppTransaction Xpert to analyze individual transactions. The company also provides IT Guru Network Planner and SP Guru Network Planner for network capacity planning and design optimization, and validation of network configuration changes; IT Sentinel that offers network configuration integrity and security auditing, and proactive change validation; nCompass for enterprises and service providers for visibility of network topology, traffic, and status; and Virtual Network Environment Server to maintain real-time data model of the production IT network. In addition, it offers SP Guru Transport Planner for designing optical networks; SP Sentinel to offer network configuration integrity and security auditing, and proactive change validation; and AppResponse Xpert to ensure application performance; OPNET Modeler, a network modeling and simulation product; Modeler Wireless Suite for wireless network R&D organizations; and Modeler Wireless Suite for defense. Further, the company develops and sells various software modules; and offers consulting services, product updates, technical support and services, and training services. OPNET Technologies, Inc. sells its products through direct sales force, as well as through distributors and value-added resellers. Its customers include corporate enterprises, government and defense agencies, network service providers, and network equipment manufacturers. The company was founded in 1986 and is headquartered in Bethesda, Maryland.

Advisors' Opinion:

• [By Martin]  

  The brokerage expects the company to continue competing successfully against larger application monitoring vendors, helped by the breadth of product portfolio and deep experience in network design and lifecycle technologies.

  The analysts see OPNET is capable of a sustained organic revenue growth rate approaching the mid-teens, which should enable the company to achieve scale advantages and increase gross margin profitability.

5 Best Tech Stocks To Own Right Now: Symmetricom Inc.(SYMM)

Symmetricom, Inc. provides timekeeping technologies, instruments, and solutions worldwide. Its Communications business unit provides timing technologies and services for communications infrastructure. The Communications business unit products comprise primary reference sources; edge clocks and distribution products for synchronization outside the network core; building integrated timing supply and sync supply unit for the central office; the PackeTime product suite; data over cable service interface specifications timing interface systems; network management and monitoring software; and embedded hardware and software solutions for integration with various elements of the communications ecosystem, such as silicon, routers, switches, microwave backhaul, and base stations. The company?s Government business unit offers time technology products for aerospace/defense, IT infrastructure, power infrastructure, and science and metrology applications. The Government business unit p roduct portfolio comprises timescale clock sources; network time servers; network time displays; time code generators; bus level timing cards; primary reference standards, such as rubidium and cesium oscillator standards; high stability masers; chip-scale atomic clocks; ruggedized crystal oscillators; and custom time and frequency systems. It offers timekeeping in GPS satellites, national time references, and national power grids, as well as in critical military and civilian networks, which enable data, voice, mobile, and video networks and services. The company sells its products through distributors, systems integrators, and manufacturer sales representatives. It serves various markets, including communications service providers; network equipment manufacturers; silicon suppliers; aerospace/defense; power utility infrastructure; IT infrastructure; underwater exploration and navigation; and science and metrology. The company was founded in 1956 and is headquartered in San J ose, California.

5 Best Tech Stocks To Own Right Now: TriQuint Semiconductor Inc.(TQNT)

TriQuint Semiconductor, Inc. provides radio frequency (RF) solutions and technology for communications, defense, and aerospace companies worldwide. The company designs, develops, and manufactures RF solutions with gallium arsenide (GaAs), gallium nitride, bipolar high electron mobility transistor, surface acoustic wave (SAW), temperature compensated surface acoustic wave, bulk acoustic wave (BAW), copper flip, and wafer level packaging technologies. The company offers an array of filtering, switching, and amplification products for RF, microwave, and millimeter-wave applications. It sells electronic components for mobile phones, including transmit modules, RF filters, power amplifiers and power amplifier modules, duplexers, switches, other RF devices, and integrated products to mobile device manufacturers. The company also offers signal amplification and filtering products, including a portfolio of GaAs microwave monolithic integrated circuits and transistors, and SAW and BAW filter components that support the transfer of voice, data, and video across wireless or wired infrastructure. Its network products comprise millimeter wave power amplifiers, frequency converters, and voltage controlled oscillators. In addition, the company provides defense and aerospace devices, including packaged products, die-level integrated circuits (ICs), microwave monolithic ICs, and multi-chip modules to military contractors serving the U.S. government for use in various communications and phased array radar programs, such as ship-based, airborne, and battlefield systems, as well as sat-com, electronic warfare, and guidance applications. Further, TriQuint Semiconductor, Inc. offers foundry services. The company sells its products through independent manufacturers? representatives, independent distributors, and direct sales staff. TriQuint Semiconductor, Inc. was founded in 1981 and is headquartered in Hillsboro, Oregon.

Advisors' Opinion:

• [By Sy_Harding]  

  Screaming buy, stock has a PEG ratio of 0.1 and is recommended by 91% of analysts.

Why Washington Federal Shares Flew

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 financial holding company Washington Federal (NASDAQ: WAFD  ) climbed as high as 10% today after its quarterly results topped Wall Street expectations. 

So what: The stock has spiked recently on strong earnings momentum, and today's third-quarter beat -- EPS of $0.36 versus the consensus of $0.33 -- only reinforces that trend. While net-interest income slipped 1.9% over the year-ago period, to $94.7 million, net interest margin increased 10 basis points, to 3.15%, giving analysts plenty of good vibes over its profitability going forward.

Now what: When you couple the company's trend of improving asset quality with the still-favorable interest rate environment, I'd expect the operating momentum to continue. "Loan demand has strengthened and if current conditions persist, the prospect of improved loan growth will become more likely," said Chairman and CEO Roy Whitehead. Of course, with the stock now up about 35% over the past three months alone, and trading at a not-so-cheapish P/E of 16, much of that bullishness might already be baked into the stock.    

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Look out Tesla, Here Comes Ford

Tesla's (NASDAQ: TSLA  ) meteoric rise this year has been nothing short of impressive, up over 250% year to date. The company itself has a lot going for it: its Model S received a 99 out of 100 from Consumer Reports, the best score for an auto in the publication's history. Aside from a quality product, Tesla's visionary CEO Elon Musk can apparently take any far-fetched idea and turn it into business gold. Despite that, I still believe Tesla's valuation has risen too high too quickly and will face competition from auto giants like Ford (NYSE: F  ) that could give Tesla trouble sooner than you think.

Electric vehicles
Ford's share of EVs in the U.S. has grown to nearly 16% this year through June, which is quadruple what it was last year. Ford's success in EVs is part of the reason that it has been able to fuel its overall market share growth in the U.S. by a full percentage point – the most by any full-line automaker, according to the company. 

Photo credit: Ford Motor Company press release.

Ford's success derives from a slew of vehicle options, as shown above. Now I understand that Tesla's Model S shouldn't be directly compared to Ford's models because it isn't an apples-to-apples comparison. However, when Elon Musk brings out the mass-produced vehicle at perhaps half the cost of the Model S the lines of competition between Tesla products and Ford's hybrids and EVs will definitely begin to blur.

Those who think that Tesla is the future of the industry may be correct, but those same people often think that juggernauts like Ford, General Motors (NYSE: GM  ) and Toyota (NYSE: TM  ) will simply roll over and die – which I believe to be very foolish.

Ford will be expanding electrification engineering jobs by nearly 50% to have more than 500 salaried employees working on research and development. It's also investing $50 million in EV development centers to further strengthen its vehicle quality. In addition to all that, Ford is also doubling its electrification battery-testing capabilities this year helping to speed hybrid and EV development by as much as 25%.

"This investment in new engineers and expanded facilities helps us prepare for growth," said Raj Nair, group vice president, global product development in a Ford press release. "All of us at Ford remain absolutely committed to offering customers a choice of leading fuel-efficient vehicles – from EcoBoost-powered gasoline engines and hybrids to plug-in hybrids and electrified vehicles."

Tesla isn't the only one that has to keep an eye on Ford's progress. According to Ford, last month 64% of C-MAX hybrid buyers switched over from non-Ford brands. Toyota's Prius was the vehicle most often traded in for the C-Max – contributing to why Toyota's share in the EV market dropped eight share points while Ford's claim jumped 12 share points.

Bottom line
Only time will tell how Tesla fares in the U.S. market as its groundbreaking vehicles continue to gain popularity and perhaps decline in price. Tesla as a company is very impressive and is disrupting an automotive industry that has long been dominated by the same old model of using internal combustion engines. One thing we know for sure is that businesses adapt or die, and as demand grows for vehicles such as Tesla's Model S, you can bet that Ford, GM, and Toyota will eventually join the party in full force by throwing hundreds of millions of dollars into research and development, which will change everything. To put it bluntly, I'm rooting for Tesla but I'm staying on the sidelines and avoiding a long position for now – Ford seems like a safer bet with plenty of room to run for investors.

Savvy investors that bet on the right automaker will see great returns throughout the decade, but which ones are best positioned for the future? China is already the world's largest auto market – and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free – just click here for instant access.

Today's 3 Best Stocks

What's more powerful than a speeding locomotive? The answer is the stock market -- when the Federal Reserve promises to keep pumping free money into the economy!

On top of calming commentary by Fed chairman Ben Bernanke, better-than-expected earnings reports continued to fuel the broad-based S&P 500 (SNPINDEX: ^GSPC  ) higher. Financials have been the big driving force thus far in earnings season, with Bank of America crushing estimates yesterday, and Morgan Stanley (NYSE: MS  ) following suit today. The No. 2 investment bank in the U.S., Morgan Stanley, delivered a 42% increase in total profits fueled by a ridiculous 83% surge in wealth management income. As long as the backbone of our economy (i.e., the financial sector) remains strong, this rally could have legs.

When the day was over the S&P 500 had, yet again, eclipsed another all-time high, rising 8.46 points (0.50%), to close at 1,689.37.

Sticking with the theme of earnings season, a better-than-expected earnings report from building and automotive efficiency company Johnson Controls (NYSE: JCI  ) is what propelled it to the top of the day's gainers, up 8.3%. For the third quarter, Johnson Controls increased revenue by 2%, to $10.83 billion, a bit lower than the Street had expected, but produced $0.78 in adjusted EPS, $0.03 better than analysts expected. Furthermore, Johnson Controls narrowed its full-year EPS range to a range of $2.64-$2.66, from $2.60-$2.70, which is higher than the current $2.61 consensus. It was definitely a good day overall for Johnson Controls, but I'd keep a cautious eye on its U.S. business, as a government spending slowdown could adversely impact its future results.

The nation's largest health insurer, UnitedHealth Group (NYSE: UNH  ) , also spiked 6.5% higher after reporting its second-quarter results. Fairly consistent with what we saw last quarter, UnitedHealth came in a tad light on the revenue side of its business than Wall Street had expected -- $30.4 billion versus $30.5 billion -- but tight cost controls helped push its $1.40 in EPS well past the $1.25 that the Street had forecast. UnitedHealth can attribute the majority of its earnings strength to strong commercial health-insurance enrollment. Looking forward, I like UnitedHealth's chances of heading higher, presuming the implementation of Obamacare goes off without too many hitches.

Finally -- and to keep with today's theme -- grocery store Safeway (NYSE: SWY  ) advanced 6.8% after reporting its second-quarter results. Although the grocer's profits fell from the previous year, adjusted EPS of $0.51 topped expectations by $0.01. Revenue also fell 2%, hurt by lower fuel sales. The big boost appears to have come from the company's forward guidance, which calls for same-store sales growth of 1.5% to 2%, and full-year EPS to come in at the lower-end of its previous forecast of $2.25-$2.45. With the Street only expecting $2.27 in EPS for the year, Safeway's in-line estimates appear to suggest its store remodeling and focus on organic products is working.

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How to Make Money in Smart Grid Stocks

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some smart grid stocks to your portfolio, but don't have the time or expertise to hand-pick a few, the First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (NASDAQ: GRID  ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of smart grid stocks simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The First Trust ETF's expense ratio -- its annual fee -- is 0.70%, which is a bit more than many ETFs, but still considerably lower than a typical stock mutual fund. The fund is fairly small, too, so if you're thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF is too young to have a sufficient track record to assess, but it has underperformed the world market over the past three years. It's the future that counts most, though, and, as with most investments, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why smart grid stocks?
Building a smart grid involves the process of modernizing, digitizing, and making more efficient our electricity industry's infrastructure. Many expect big things from it, with Cisco Systems CEO John Chambers suggesting, back in 2009, that it will be a bigger business than the Internet. Some smart grid stocks are pure plays, while others are bigger companies engaged in lots of other operations, too.

More than a handful of smart-grid-related companies had strong performances over the past year. Solar energy inverter maker Power-One (NASDAQ: PWER  ) , and utility contractor Pike Electric (NYSE: PIKE  ) , both surged 44%. Power-One's gain is in large part due to its being acquired, at a premium, by Switzerland-based power and automation technology giant ABB. Some have worried about inverters becoming commoditized, but others have admired Power-One's profitability and solid balance sheet.

Expectations for Pike Electric have been so high that the stock slumped in May on news that its third-quarter revenue and EPS grew only by 23% and 33%, respectively. Management blamed the weather for some slowdown in construction. Analysts at Stifel downgraded the stock in March, but then upgraded it back to a buy rating in May.

General Electric (NYSE: GE  ) jumped 24%, and recently yielded 3.2%. The company makes hardware and software for the smart grid, such as its smart meters. It's pretty far away from being a pure play among smart grid stocks, though, as its portfolio includes everything from light bulbs to refrigerators, to aircraft engines, to mammography systems, to mining equipment, and much more. Its latest earnings report is coming up later this week, and in its last quarter, it posted operating earnings up 15%, and equipment orders up 10%. One factor holding the company back has been weakness in Europe. GE has been boosting its involvement in renewable energy in recent years.

Canada's largest energy company, Suncor Energy (NYSE: SU  ) gained 10%, and yields about 2.5%. The company has expertise in deep oil sands, which are not known for cleanliness, but it's also investing more heavily in renewable energies. In recent news, pipeline shutdowns due to flooding put a crimp in production. Suncor is vulnerable to possible tightened regulations on pipelines, and its diversification beyond North America.

The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in, and profiting from it, that much easier. It you're interested in smart grid stocks, give this ETF a closer look. Or just examine the smart grid stocks within it.

This ETF focused on smart grid stocks isn't the only one to consider. I invite you to check out our special free report, "3 ETFs Set to Soar," which will introduce you to a few ETFs that have great promise for delivering profits to shareholders. Just click here to access it now -- for free.