Microsoft's Sticking to Its Guns With Windows 8.1

Microsoft (NASDAQ: MSFT  ) took a break from shooting itself in the foot to announce some much-needed updates to the Windows 8 operating system. Windows division CMO and CFO Tami Reller took pains to explain that the company must have a point of view and basically stick to its guns.

Microsoft is trying to revive the flagging PC market by making desktops more like tablets, but isn't that a completely backwards strategy? The company touts 1.3 billion global customers, all of whom expect a certain experience on their traditional computer systems. And Microsoft just keeps pushing that carrot out of reach.

In the video below, Fool contributor Anders Bylund explains the move to investors.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

Solazyme Adds (More) Precision to Tailored Oil Platform

Synthetic biology company and renewable oils manufacturer Solazyme (NASDAQ: SZYM  ) reported earnings after the market closed on Wednesday. Investors worried about a quiet start to the year were reminded that the company remains occupied preparing its three commercial-scale facilities for operations and developing oil profiles. The waiting game isn't quite over for investors, but management announced one major event that should keep investors happy. Here is a recap of recent developments at Solazyme.

Financials
As a developmental stage company with few revenue streams, Solazyme doesn't give investors much to look for in traditional financials. The operating results compared to the year-ago period are displayed below nonetheless.

 

1Q13

1Q12

% Change

Total Revenue	$6.68 million	$13.56 million	(50.8%)
Product Revenue	$4.00 million	$3.996 million	0%
Cost of Product	$1.45 million	$1.25 million	17.0%
Total Costs	$30.03 million	$30.66 million	(2.0%)
Net Loss	$26.53 million	$16.78 million	58.0%

Source: Solazyme

More important is the fact that cash on hand grew 60% to $239 million after a successful debt note offering shortly after the beginning of the year. Meanwhile, shareholders' equity fell 10% to $164 million compared to the fourth quarter of 2012. The company's strong financial health equates to the "no news is good news" mantra for investors.

Partnership outlook
Solazyme announced a sales agreement with AkzoNobel, a global paints and coatings company, as the first concrete off-take agreement for oils originating from the biorefinery in Moema, Brazil. The agreement will send bulk quantities of oils to AkzoNobel in 2014, with the companies beginning to develop oils for the agreement in the second half of 2013. It is important for investors to remember that the Moema facility will be operating at a restricted capacity until at least 2015, as it generally takes 12-18 months to ramp up to nameplate capacity.

Investors will be on the lookout for further, perhaps larger, customer announcements in the coming quarters. Just remember that there is plenty of time between now and mid-2015. Until then, there should be no worries from the guidance and commercialization aid Solazyme will receive from agri-giants Bunge (NYSE: BG  ) and Archer Daniels Midland (NYSE: ADM  ) .

Product commercialization outlook
The biggest announcement from Solazyme during the earnings call was the development of a new oil-tailoring capability. Below you will see a series of pictures showing a triglyceride oil, which is a glycerol backbone (grey) and three fatty acid chains (black). Controlling the structure of a triglyceride oil gives Solazyme unparalleled capabilities in biomanufacturing. For instance, the company already had the ability to control chain length of oils, which yields the highest value fatty acids.

Source: Solazyme

Additionally, Solazyme already had the ability to control saturation along the fatty acid chain, which is noted by the double line (a double bonded carbon) in the picture below. This affects the functionality and specifications of tailored oils.

Source: Solazyme

Now, the company has developed the ability to control the positioning of functional groups along the fatty acid chain.

Source: Solazyme

Why does this new development matter? Solazyme can now eliminate trans fats in its nutritional oils, retain texture of oils without hydrogenation, and control the functionality of oils with even greater precision. Positioning does not necessarily apply to all oils in the company's portfolio, but it will open up a new frontier for what is possible with Solazyme's platform. This is definitely an awesome development for investors, even if it is in the early stages.

In other news, each of the three commercial biorefineries under construction remains on track.

Biorefinery

Nameplate Capacity

Commissioning

Product By...

Peoria (product development)	8,000 metric tons	Active	(test quantities)
Solazyme Roquette Nutritionals	5,000 metric tons	June 2013	2H13
Solazyme Bunge	100,000 metric tons	2H13	4Q13
ADM/Clinton	20,000 metric tons	Early 2014	Early 2014

Source: Solazyme

The following updates were also provided by management:

The Algenist product portfolio launched two new products and expanded into Turkey. Further expansion is expected into Mexico and Asia soon, with sales predicted to pick up in the second quarter. Levels of myristic acid, one of the highest-value oils targeted by the company with partner Mitsui, reached levels of 60% in the company's myristic oil profile. That is 400% greater than levels found in coconut oil, the traditional source of myristic acid.

Foolish bottom line
There is much work to be done to de-risk Solazyme's technology. However, the company's strong financial position and commitment to execution could bolster the argument for an investment. Solazyme had a quiet quarter, but made progress where it counts. The company remains on track with commercial progress on the construction side and product development side. Investors should not rock the boat one way or the other from an investment strategy perspective -- just stick to your plan. 

Be on the lookout for continued Solazyme coverage from The Motley Fool in the next few weeks. In the meantime, The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

These Crushed Gold Stocks Are Poised to Profit From a Gold Rebound

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some gold-related stocks to your portfolio, the iShares MSCI Global Gold Miners ETF (NYSEMKT: RING  ) 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 iShares ETF's expense ratio -- its annual fee -- is a rather low 0.39%. The fund is fairly small, though, 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 much of a track record to assess. It's down more than 40% over the past year, though. 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.

Why gold?
Gold is not everyone's cup of tea, but some investors like to include some in their portfolios for the sake of diversification. Some also favor precious metals, as some of them have more utility. With gold's recent plunge, some are steering clear, while others are seeing bargains.

It wasn't a pretty past 12 months for gold-related companies, due to falling gold prices, rising costs, and even some labor difficulties around the globe, along with a strengthening dollar.

AuRico Gold (NYSE: AUQ  ) plunged 44%, having posted some disappointing results lately, and is also suffering from a competitive disadvantage, with its costs above those of some peers. On the plus side, though, the company recently initiated a dividend, which now yields about 2.8%.

Kinross Gold (NYSE: KGC  ) sank 40%, and yields about 3%. It has some worried, with its rising debt, and recently negative free cash flow. Its stock has been setting some multi-year lows and, while its earnings are in the red, its revenue has been growing steadily over the past few years. Last year, management committed itself to quality over quantity -- and delayed some mining projects.

Randgold Resources (NASDAQ: GOLD  ) shed 19%, despite posting record production last year. The company has significant operations in Mali, which has been in the midst of considerable political upheaval. Still, its sizable African operations are promising. The company recently hiked its dividend by 25%,

Yamana Gold (NYSE: AUY  ) fell 18%. It recently yielded 2%, and it has been upping that payout significantly. Bulls like its conservative management and relatively low costs, and have high hopes for its recently acquired Cerro Moro mine in Argentina.

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.

Want another gold candidate for your portfolio? Consider Goldcorp, one of the leading players in the gold mining market. For the last several years, investors have been the beneficiaries of several successful acquisitions and strong organic growth. Goldcorp's low-cost production of one of the most sought-after metals in the world continues to make this stock an attractive choice for long-term investors. To learn everything you need to know about this mining specialist, you're invited to check out The Motley Fool's premium research report on the company, which comes with a full year of ongoing updates and analysis to keep you informed as key news breaks. Click here now to claim your copy today.

3 Things to Watch at Google This Earnings Season

Google (NASDAQ: GOOG  ) steps up with fresh quarterly reports on April 18. 

There's plenty riding on the results. Shares of the dot-com bellwether hit an all-time high last month, and now Google will have to prove that the gains are justified. 

There are a lot of factors that investors will need to keep in mind as they dig into the numbers, and you can be sure that investors in Yandex (NASDAQ: YNDX  ) and Baidu (NASDAQ: BIDU  ) will also be tuning in. Both companies report just two trading days after Google steps up with its financials, and it wouldn't be a surprise to see those region-specific search engines that dominate their home markets move on positive or negative developments.

In this video, Rick picks out the three things that investors will need to keep an eye on as they take in Big G's numbers.

Gear up for the report by diving deeper into Google
As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

Intel and Rockchip Release an ARM Chip: What You Need to Know

Liliputing reported Rockchip is "showing off one of the first chipsets" based on the partnership that Intel (NASDAQ: INTC  ) and Rockchip announced back in May. In particular, it looks as though this is a dual core ARM (NASDAQ: ARMH  ) Cortex A5 processor which has an integrated 2G/3G modem as well as separate RF chip that integrates 2G/3G RF, Wi-Fi/Bluetooth, and GPS functionality.

What seems to have people freaked out is that this is based on an ARM processor rather than an Intel processor, leading some to believe that there has been an abrupt change in plan.

This couldn't be farther from the truth.

This is SoFIA's predecessor
Remember when Intel first announced its SoFIA system-on-chip platform for low-cost smartphones and tablets? Intel's management team explicitly noted that they were taking a design that had already been under development from its "feature phone" (i.e., dumbphone) product offerings and goosing it to include Intel-designed processor cores.

What we are seeing here with the recently announced platform from Rockchip and Intel is a modem platform known as the XMM 6321 (consisting of the XG632 baseband/SoC and AG620 RF chip). According to an Intel road map that leaked quite some time ago, this part was under development well before Intel inked its deal with Rockchip.

Why release this chip?
In this day and age, smartphones are ubiquitous, and with each passing day "smartphones" displace traditional "feature phones" as prices on the latter come down. It's interesting, then, to see Intel (along with Rockchip) release what is essentially a feature-phone-targeted part.

According to the aforementioned leaked roadmap, Intel had listed Samsung, Huawei, LG, and ZTE as (potential) customers for this product. The fact that the product is still being launched leads me to believe that there is nontrivial demand for the platform, and given how low Intel's Mobile and Communications Group revenue is (it raked in a mere $1 million last quarter), my guess is that Intel is happy to grab any business that it can.

What does the future hold?
Intel's CEO Brian Krzanich talked about the company's strategy with SoFIA and the low-cost smartphone market on the company's most recent earnings call. He alleged that Intel has "SoFIA in the labs running" and that the LTE version of SoFIA is "on schedule" for the "first half of [2015]."

These chips, by their very name ("Smart or Feature Phone on Intel Architecture") will feature Intel-designed processor cores, and should actually offer much better performance than the dual core ARM Cortex A5 found inside of this XMM 6321 modem platform. That said, SoFIA will probably be more expensive to build, so it probably won't go into the same types of phones as the XMM 6321 will.

Foolish bottom line
When all is said and done, this new chip likely doesn't mean too much for Intel from a revenue perspective; the revenue per chip that Intel will be able to get from it is probably not high, and it's not clear how many Intel will actually be able to sell.

However, given that XMM 6321 apparently served as the springboard for Intel's upcoming SoFIA product, I'd say that whether it generates a material amount revenue or not, it was still a worthwhile for Intel to develop it.

Apple Watch revealed: The real winner is inside
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here!

Dow Industrials Jump 150 Points as Losses, Losses Go Away

The stock market broke its losing streak in a big way today.

Getty Images

The S&P 500 gained 0.8% to 1,998.30, while the Dow Jones Industrial Average rose 154.19 points, or 0.9%, to 17,210.06. The Nasdaq Composite advanced 1% to 4,555.22 and the small-company Russell 2000 finished up 0.9% at 1,128.37.

Chalk up the gains to better-than-forecast new home sales and the desire of investors to, you know, buy the dips.

The folks at Birinyi Associates remain upbeat about the market and think the S&P 500 could hit 2,100 by the end of the year:

We will continue positive because history suggests higher prices and the negative case continues to be, as the kids say, "sketchy." While the market, we are told, is expensive we might first point out that its multiple is lower than it was five years ago. Some stocks – obviously not all – are actually cheaper than they were six months ago. Apple (AAPL), for example is trading at 16 times earnings vs 22x five years ago.

Barclays’ Jonathan Glionna and team don’t expect the S&P 500 to hit 2,100 until the end of 2015:

We are also somewhat critical about the quality of EPS growth from US corporates…as the benefits of margin expansion and share repurchases look priced in and a return of faster revenue growth becomes a prerequisite for another re-rating higher. However, sales growth is currently only at 3%. Therefore US equity markets may have entered a period of lower returns.

This is not to say we are bearish on the prospects of US stock markets. M&A activity remains robust, and the outperformance of acquirers…suggests that the cycle will last longer than usual. This should remain supportive of US stock markets. Our S&P 500 targets of 1975 for 2014 and 2100 for 2015 suggest modest upside.

And that’s what counts as bearish on Wall Street these days.

Harley-Davidson's Heavyweight Motorcycles Aren't Leading The Parade On Wall Street

It's the Fourth of July! And almost all of the holiday fun-seeking Americans are out on the road to enjoy the festivities of the highly valued Independence Day. Practically every major road and highways have been teeming with all types of vehicles for them to celebrate this revered and most popular national holiday.

The usual roar of motorbikes, for one, led by the No. 1 of them all, the Harley-Davidson power motorcycles, continue to lead all kinds of parades or road activities in most towns and cities. But despite Harley's globally popular Hog and its other motorbikes, shares of this maker of major heavyweight motorcycles haven't been leading the parade on Wall Street, where the stock market has been operating on all cylinders, with the Dow Jones industrial average and S&P 500-stock index hitting multiple all-time record highs this year.

Shares of Harley have slumped to $68.75 a share on July 2, 2014, down from $73.23 on April 30, 2014, in part due to dire forecasts of sales prospects ahead. The drop in Harley-Davidson's stock price has surprised investors because the stock market has been on a tear. The motorcycle leader's stock had been expected to join the market's big rally this year. But the one big reason behind the stock's retreat: Worry about a softening in motorcycle sales worldwide.

"We now see a somewhat heightened level of risk in the near term, given recent indications of sluggish year-to-date motorcycle industry retail trends that appear essentially flat," warns Scott Hamann, analyst at KeyBanc in a note to clients. He has downgraded Harley-Davidson to a hold from a buy, and removed his price target of $80 a share.

One major source of concern is the continuing weakness in the European market. "Near-term results could be weighed down by economic weakness in Europe," says Efraim Levy, analyst at S&P Capital IQ, who recently reiterated his recommendation of a "Hold" on Harley-Davidson's stock, even as he continues to hold a positive outlook for long-term sales growth. In fact, Levy expects revenues rise this year by 12% and by 8.5% in 2015. "We have a positive view of Harley-Davidson's cost-cutting  efforts," adds Levy, and the company's solid balance sheet.

Still he and other analysts aren't inclined to minimize the potential risks involved in the sluggish European market and how that could hurt motorcycle sales should the situation dampen the global economic recovery. Expanding its operations internationally is one of the company's major objectives. It expects to open 100 to 150 new dealerships from 2009 through the end of this year. Through the end of December 2013, Harley-Davidson has added 118 new international dealers.

Harley Davidson (Photo credit: racin jason)

The company may have to re-study and revise the timing and schedule in its international expansion plans in light of the weak forecasts for sales in Europe.  

Although "we feel the stock has worthwhile total return potential out to 2017-2019," says Alan G. House of investment research firm Value Line, "conservative accounts should note, however, that the company is susceptible to economic downturns, as is evidenced by its subpar Earnings Predictability score (in Value Line's ranking system)." Value Line ranks Harley-Davidson only No. 3 in its Timeliness and Safety metrics.

In the meantime, however, the analyst expects Harley-Davidson's profitablity will continue. He sees the company earning $3.90 a share in 2014 on projected revenues of $6.5 billion, and $4.50 a share in 2015 on estimated sales of $7 billion. In 2013, Harley-Davidson earned $3.28 a share on revenues of $5.8 billion.

The company has about 30 models of Harley-Davidson heavyweight motorcycles, with U.S. manufacturer's suggested prices ranging from $249,849 in 2012 and $235,188 in 2011 — but still below the high of $303,479 in 2008. The company manufacturers five families of Harley-Davidson brand motorcyclces: Sportster. Dyuna, Softtail, Touring, and VRSC.

Newly Blue: 5 Blue-Chip Stocks to Buy

Popular Posts: 9 Cheap Stocks to Buy Now for $10 or Less11 Best Cheap Stocks Under $10 to Buy Now10 Cheap Stocks to Buy Under $10 Recent Posts: Newly Blue: 5 Blue-Chip Stocks to Buy 5 Hot Stocks Getting Their Momentum Back 5 Robot Stocks to Buy View All Posts Newly Blue: 5 Blue-Chip Stocks to Buy

The broadest definition of a blue-chip stock is a large company with a market capitalization of many billions that is also the market leader in its sector and a big-time name.

Source: Flickr

To some, the term "blue chip" also comes with a certain risk profile — a company that has been around for a long time, pays a dividend and is stable even in the worst of times. Think picks like Procter & Gamble (PG) and Coca-Cola (KO).

But blue chip investors don't have to be limited to the same stodgy list of companies. After all, there are a bunch of companies that have grown explosively over the past decade or two and have carved out a very comfortable and established niche and a massive market size.

Even if they haven't been around for a hundred years, I think these picks still qualify as blue-chip stocks to buy based on their dominance, dividend and stability.

So if you're looking for blue chip stocks to buy, consider these new members of the club:

Blue-Chip Stocks to Buy: Starbucks (SBUX)

McDonald's (MCD) is a blue chip stock in the eyes of many investors, and it's time to add Starbucks (SBUX) to the list of stable dividend players who operate in the restaurant space.

SBUX stock has traded publicly for more than 20 years, and currently boasts an impressive market capitalization of $56 billion — right in the ballpark of General Motors (GM) and Prudential (PRU).

And while Starbucks only recently began paying dividends four years ago, its dividend growth has been amazing. Payouts are up 160% from 10 cents per share quarterly in 2010 to 26 cents currently. That might only translate to a 1.4% yield, but at only 40% of this year's earnings, that leaves plenty of room for future growth.

As for stability, Starbucks continues to expand its brand globally and is as entrenched as any restaurant in the U.S. Also the company has just $2 billion in debt and liabilities just shy of $3 billion — an amazing balance sheet for a company this size, and particularly one in the restaurant sector.

Oh yeah, and SBUX is sitting on $1.7 billion in cash and short-term investments.

While you may not think of Starbucks first when you think of blue-chip stocks to buy, give this coffee king a look. Because the stability and dividends are certainly there — and will be there in the years to come.

Blue-Chip Stocks to Buy: Intel (INTC)

Growing up in the computer age and only seriously investing in the 2000s, I have always thought of Intel (INTC) as a blue-chip stock, even while older investors scoff at the notion.

I mean, the company has a $148 billion market cap right now — bigger than Citigroup (C) and on par with Bank of America (BAC) — and it has traded publicly since the 1970s. INTC also boasts a 3.2% yield with a 20-year history of payouts and impressive dividend growth.

So … why is this not already widely accepted as a blue chip stock?

Sure, in the 2000s there was the dot-com hangover, and recently there has been hype about a "post-PC age." However, talk about the rise of e-commerce doesn't mean that Wal-Mart (WMT) must cancel its dividend and get summarily booted from the Dow Jones Industrial Average.

Intel is evolving with the times. And heck, even if it doesn't, there is zero chance of its entire semiconductor business evaporating overnight. Intel remains the No. 1 chipmaker in the world with a roughly 15% market share according to research firm IHS.

It may be a tech stock, and it may be facing risks right now. But Intel is assuredly a low-risk, dividend-paying blue chip that will survive no matter what the market throws its way.

Blue-Chip Stocks to Buy: China Mobile (CHL)

To some investors, only stocks in developed markets qualify as blue chip-stocks. And to others, even stocks like Swiss consumer giant Nestle (NSRGY) don't count because they are headquartered overseas.

However, we live in the age of globalization, and that kind of thinking is a bit naïve. After all, how is Chevron (CVX) all that much different than Royal Dutch Shell (RDS.A) because they are headquartered on different continents?

The next geographic step for blue chip stocks, then, is to go beyond Europe and even into some major emerging markets where the stocks there are even more entrenched than their American peers.

One stock that fits this bill is Chinese telecom China Mobile (CHL), a massive company worth about $200 billion that commands over 750 mobile subscribers — twice the population of the entire united states!

You don't get much more entrenched than that.

Furthermore, look at these dividend stats for CHL:

Current dividend yield: 4.4% (based on its total 2013 payouts of roughly $2.01) Dividend payout ratio: 41% of projected 2014 earnings Dividend growth: 550% in 10 years, from 30.8 cents per share in 2003 to $2.01 last year

Sure, China Mobile is still growing as rural China continues to get connected. However this stock is already so huge that even adding a few million extra subscribers here and there doesn't really move the needle dramatically on a percentage basis.

There is assuredly risk to all China stocks, but investors can take heart in the fact that CHL has largely been rangebound between $40 and $60 per share since the end of 2008 — and is currently in the middle of those bounds at just shy of $50 per share.

Don't be fooled by the China hype. CHL has stability, a robust dividend and blue chip status despite its presence in this emerging market.

Blue-Chip Stocks to Buy: Visa (V)

Visa (V) certainly meets the standard of a household name, with this company at the center of the credit card industry for decades. But to many investors, Visa is simply too young to trust with blue-chip stocks status because it only went public in 2008.

That's just plain silly. Visa is a $130 billion company that operates in 200 countries and has been at the forefront of payments processing since it was created in the mid-1970s. The company's brand is synonymous with credit cards, Visa has deftly branched out into emerging markets and leadership continues to forge ahead with mobile payments to find even more growth in a digital age.

What's not "blue-chip" about Visa, aside from its relatively short presence on the NYSE?

Visa pays an admittedly disappointing dividend of just 0.8%, however the company has paid distributions since shortly after its IPO and has almost quadrupled payments from 10.5 cents quarterly to 40 cents currently. Furthermore, the dividend payout ratio is a highly sustainable 21% of earnings — and with those earnings consistently growing, the dividend should grow, too.

The stock is stable, the business is entrenched and the dividend has big upside … sounds like another winner on the list of blue-chip stocks to buy.

Blue-Chip Stocks to Buy: Cisco (CSCO)

Some investors are happy to place the label of blue chip stock on IBM (IBM), but for some reason similar enterprise technology companies don't enjoy the same status in their eyes.

That's nonsense. Even though IBM is (ostensibly) over 100 years old, a company like Cisco (CSCO) shouldn't be denied the same label just because it doesn't have the same age.

Consider that Cisco is worth over $125 billion in market capitalization, and has operated since the 1980s. Oh yeah, and after Citigroup (C) and General Motors (GM) were booted from the Dow Jones Industrial Average thanks to the financial crisis, they were replaced by this relatively young tech stock in the flagship stock market index.

And despite criticism in recent years about how the company foolishly chased consumer products like the Flip video camera and is losing out in the new era of tech, CSCO happened to be No. 1 in cloud computing infrastructure market share last quarter — beating out Hewlett-Packard (HPQ) and IBM.

Cisco only recently began paying dividends, starting in 2011. But those dividends have tripled in short order from 6 cents quarterly to 19 cents per quarter currently. That's good for a 3.1% yield.

Critics will say that CSCO stock has been very sleepy and has gone nowhere since its dot-com bust. But remember, blue-chip stocks are about stability and not explosive moves. The slow-and-steady nature of Cisco for the last 10 years actually proves pretty well why this stock should be included in the conversation of new blue chip stocks.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. 

Intel Inside the Indexes Gave the Market a Boost

Stocks ended a mini-losing streak on Friday, led by upbeat news from Intel (INTC). The Dow Jones industrial average (^DJI) rose 41 points, after sliding more than 200 over the previous two days. The Nasdaq composite (^IXIC) gained 13 and the Standard & Poor's 500 index (^GPSC) added 6 points. Those modest gains did little to trim the loss for the week. The major averages posted their biggest weekly declines in more than two months. Intel is a component of all three big indexes, and it jumped 7 percent after raising its revenue guidance for the current quarter. The company sees stronger business demand for PCs than it previously expected. Intel shares are up 23 percent over the past six months. The Intel news had a ripple effect. Computer maker Hewlett-Packard (HPQ) rose more than 5 percent and Microsoft (MSFT) gained 1½ percent. Part of the increased demand Intel points to is tied to corporate buyers who need to replace their Windows XP machines, because Microsoft has stopped providing technical support for that platform. But Apple (AAPL) lost more than 1 percent. The stock is down since its 7-for-1 stock split took effect on Monday. There were two other big stories that had some legs beyond the companies directly involved. Open Table (OPEN) agreed to be acquired by Priceline (PCLN) for $2.6 billion. Open Table, which provides restaurant reservations, jumped 48 percent. Other online service providers rode the coattails of that deal. Yelp (YELP) gained 14 percent and Groupon (GRPN) gained 4 percent. In the retail arena, Express (EXPR) jumped 21 percent after a private equity firm took a 9.9 percent stake in the teen retailer and indicated it may make a buyout offer. That gave a boost to Aeropostale (ARO) and American Eagle (AEO), which both rose more than 2 percent. Abercrombie & Fitch (ANF) gained 1½. Elsewhere, International Game Technology (IGT) gained 10½ percent on a Reuters report that a bidding war could erupt for the maker of slot machines. Karyopharm Therapeutics (KPTI) soared 80 percent on positive news from a clinical trial on its treatment of multiple myeloma. But OncoMed Pharmaceuticals (OMED) fell 11 percent after halting two drug trials due to adverse events. What to Watch Monday: The New York Federal Reserve releases its survey of manufacturing conditions in New York state at 8:30 a.m. Eastern time. The Federal Reserve releases industrial production for May at 9:15 a.m. The National Association of Home Builders releases its housing market index for June at 10 a.m. Korn/Ferry International (KFY) reports quarterly financial results after U.S. markets close. -.

Market Hustle: Stocks Rise Despite Poor China Manufacturing Data; Bank Stocks Fall

NEW YORK (TheStreet) -- U.S. stocks were slipping Monday as manufacturing in China contracted and tensions in Ukraine rose. Key bank stocks were lower.

WATCH: More market update videos on TheStreet TV | More videos from Debra Borchardt The Dow Jones Industrial Average was 0.07% lower to 16,501.91 while the S&P 500 was down 0.04% to 1,880.47. The Nasdaq slipped 0.06% to 4,121.4. Economic data was broadly positive. The ISM Non-Manufacturing Index beat expectations with an April result of 55.2, up from 53.1 in March. The Markit PMI services index was 55 in April down from 55.3 in March as job creation fell to a 13-month low. The result beat flash estimates of 54.2.  "The ISM non-manufacturing index is consistent with GDP growth of about 2.5% annualised, but we wouldn't be surprised to see it strengthen further over the next few months and we currently expect that second-quarter GDP growth will be as high as 3.5%," Capital Economics chief U.S. economist Paul Ashworth told clients.  Pfizer (PFE) was dropping 2.5% after it reported first-quarter earnings of 57 cents a share on revenue of $11.29 billion, missing analysts' estimates on the top-line The earnings announcement arrived after AstraZeneca  (AZN) on Friday rejected Pfizer's sweetened bid that values AstraZeneca at $106 billion. Target (TGT) shares were shedding nearly 3% after CEO Gregg Steinhafel resigned on Monday, with Chief Financial Officer John Mulligan replacing him on an interim basis. The company had an embarrassing data breach over the holidays. JPMorgan  (JPM) was falling 2.6% after it said on Friday that revenue in fixed-income and equities trading would drop about 20% from a year earlier. Goldman Sachs (GS) and Bank of America (BAC) were also lower, down 1.8% and 1.3%, respectively. Sotheby's (BID) was up 1.8% after agreeing Monday to give Daniel Loeb's hedge fund Third Point LLC board seats and the option to lift his stake.  Tensions in Ukraine heightened over the weekend as pro-Russian militants burst into a Ukrainian police station in Odessa on Sunday, freeing about 70 activists. The DAX in Germany closed 0.28% lower and the Hong Kong Hang Seng was down 1.28%. Markets in London and Tokyo were closed for public holidays. Manufacturing in China contracted in April for the fourth straight month, according to the HSBC's purchasing managers' index released on Monday. U.S. stocks closed lower Friday, erasing early gains after April's jobs report showed a falling work force participation rate. -- By Jane Searle and Keris Alison Lahiff in New York

Stock quotes in this article: ^DJI, ^GSPC, ^IXIC, PFE, AZN, TGT, JPM, GS, BAC, BID 

A guide through the complexities of 401(k) fees

Where to find the fees charged by your 401(k) retirement funds?

"Sorry to say there isn't an easy answer to where to find all expenses on retirement accounts, which is definitely part of the problem," says Jennifer Erickson, co-author of a new study of 401(k) fees by the Center for American Progress.

Your quarterly statement may not show all the fees and "can be even more confusing," Erickson says.

Most fees —more than 80% of them — are covered by a plan's "expense ratio." The expense ratio includes recurring fees you're charged when you invest in a fund. The ratio is disclosed in a document — form 404(a)(5) — sent annually to participants in 401(k) plans.

The expense ratio appears as a percentage of assets. It's also shown as an annual dollar amount for every $1,000 you invest. But the $1,000 figure can be misleadingly low. It doesn't illustrate how fees pile up year after year as you put more money into the plan.

For example, a 1% expense ratio comes out to $10 per $1,000 invested. Yet as you contribute more money and your investment grows over several decades, that 1% will likely add up to tens of thousands of dollars.

Among the fees some funds collect that aren't included in the expense ratio: Sales charges. These are also known as "loads" or commissions. These fees can vary from plan to plan and can be hard to find in the fund documents.

Erickson and co-author David Madland suggest asking your human resources department to help you compare fees among different plan options.

How else to minimize what you pay in 401(k) fees?

Greg McBride, chief financial analyst at Bankrate.com, suggests favoring index funds that track broad market measures, such as the Standard & Poor's 500, rather than costlier funds that actively buy and sell investments.

And McBride has another suggestion: Lobby for lower-cost options from your employer's human resources department and from the company that sponsors your employer's 401(k) plan.

Will a Plan to Pay for Google Business Apps Users Disrupt Microsoft Office?

Want to make a fast $15? Recommend Google's (NASDAQ: GOOG  ) business apps suite to a friend and help the search king disrupt Microsoft's (NASDAQ: MSFT  ) Office. Fool contributor Tim Beyers explains the strategy's implications in the following video.

Specifically, the promo calls for paying $15 for every user who signs up for Google business apps, up to the first 100 who've paid for at least 120 days of access. Why the bribe? The problem may not be with the suite so much as what it offers beyond the free versions of Google's productivity software. Tim, an avid user of the search king's free services, says he doesn't yet see a difference worth paying for -- unless you own a business large enough to demand a standardized suite of productivity software.

No doubt ironic given the work-anywhere-and-however-you-want nature of cloud computing. And yet there's evidence that cloud-based productivity suites are catching on. Gartner's latest estimate put Google business apps at 33% to 50% of the market as of 2012.

Microsoft has taken notice of the threat and last month made it easier for users to navigate to and begin using the free versions of its productivity software at Office.com. An iPad version could arrive as early as next week, adding to Mr. Softy's existing Office 365 apps for iOS and Android.

In that sense, Google is paying to defend an emerging business (i.e., Google business apps) as Microsoft fights to keep its legacy business (i.e., Office). For investors, it's a fight to see who will own the future -- one that's worth watching. Now it's your turn to weigh in. Are you using Google business apps? Why or not? Sound off in the comments section below.

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Goldman Sachs: Alcoa Could Gain More Than 30% on Auto, Aerospace Aluminum Demand

Goldman Sachs is bullish on aluminum–and Alcoa (AA).

Associated Press

Goldman Sachs’ Sal Tharani and team see Buy-rated Alcoa gaining more than 30%% during the next six months. They explain why:

We raise our 6-month P/E-, EV/EBITDA-, and DCF-based price target to $15 from $12, and raise our multiples an average of 15% to reflect the strong growth potential from automotive aluminum sheet and continued aerospace strength. We expect [Alcoa] to see multiple expansion as investors gain more confidence in the demand growth for automotive aluminum sheet, growing aerospace demand, and its continued cost cutting initiative in the upstream businesses. We believe automotive aluminum will be the fastest growing market for metals over the next several years, where Alcoa has a leading position in the US.

We believe the North American automotive aluminum sheet market will grow at an over 50% CAGR from 2013-2016 and believe the Ford (F) F-150 is just tip of the iceberg. We expect further announcements of aluminum body vehicles in the US, as automakers work to achieve CAFE emission standards and gain customers who are more concerned about fuel costs. For instance, Ford expects the F-150 to have +30% fuel efficiency gains by switching to an all-aluminum body; when comparing the steel Toyota (TM) Venza (with only 3% Al content) to the aluminum intensive
model (37% content) fuel efficiency improved by over 18%.

Tharani also added Constellium (CTSM) to his conviction list with a $35 price target.

Shares of Alcoa have gained 2.5% to $11.34, while Constellium has advanced 1.9% to $25.25. Ford has risen 0.6% to $14.93 and Toyota Motor is up 0.7% at $117.84.

New Era for Uranium

One in every ten light bulbs in the US gets its power from Russian fuel. It's been that way ever since 1993, when the "Megatons to Megawatts" program began, explains energy sector expert Peter Krauth in Money Morning.

Under this agreement, highly-enriched uranium, contained in ex-Soviet nuclear weapons, was converted into nuclear fuel. But, by the end of December, that deal will end and about 13% of the global uranium supply will simply dry up.

That's a serious challenge to replace. America's nuclear plants, all 104 of them, consume a whopping 43 million pounds of uranium every year.

There are 435 nuclear reactors in the world, with another 66 under construction. That's 15% more than are currently operating. By some estimates, 408 more will be added in the next couple of decades.

The outlook is simple. We're going to need to produce more uranium. The question is: Can this uranium be produced cost-effectively?

Through all of this, uranium prices—both spot and long-term—have been struggling since early 2011.

But here's what you need to know about the uranium price: although the spot price (currently $36/lb) is the one most often quoted, as much as 85% of all uranium is sold under long-term, multi-year contracts (currently averaging about $50/lb).

The other salient point is that, according to some experts, it actually costs $85/lb to produce. So, the average miner is losing about $50 on every pound of uranium sold at spot, and $35 for each pound sold on a long-term basis. How long do you figure that can last, really?

There's little doubt nuclear will remain a cornerstone of the world's future energy mix. And uranium producers won't keep losing money indefinitely. The price simply has to rise, and here's how we can benefit.

Uranium Participation Corp. (TSX:U) is a physically-backed uranium ETF. The fund's manager simply buys uranium oxide and uranium hexafluoride, with the purpose of selling those holdings in the future.

According to their most recent statement of investment, Uranium Participation Corp. holds about 5.75 million pounds of uranium oxide and about 4.85 million pounds of uranium hexafluoride.

While there's no leverage like that, which comes with uranium miners, Uranium Participation also carries little more than uranium price risk.

And right now, spot uranium is changing hands at a 60% discount to the cost to produce it—never mind turning a profit.

Current low prices are a disincentive way to build new supply, as well as to expand mine output. The "Megatons to Megawatts" program is over and about 13% of global supply, 24 million pounds of high-grade uranium, is about to be erased.

This situation cannot last. Uranium prices must rise—which makes Uranium Participation Corp. the best uranium play there is.

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