EV Energy Partners to Acquire Natural Gas Properties from Carrizo (EVEP, CRZO)

EV Energy Partners, L.P. (EVEP) announced on Friday that it will acquire natural gas assets from Carrizo Oil and Gas, Inc (CRZO).

With the help of institutional partnerships managed by EnerVest, EVEP will acquire a 31% stake in natural gas properties in the Barnett Shale from CRZO for $67.6 million. Including the partnerships managed by EnerVest, the deal will be worth a total of $218 million.

The deal has been approved by the board of directors of both companies and is expected to be finalized on October 31. The assets include 82 wells and over 17,000 gross acres.

EV Energy shares were mostly flat during pre-market trading Friday. The stock is down 36% YTD.

Ford Focus EV Under Investigation for Serious Sudden Stalling Claims

A series of consumer complaints against a popular electric vehicle has prompted an investigation by regulators.

Documents from the National Highway Traffic Safety Administration (NHTSA) indicate that the agency is looking at about 1,000 Ford (F) Focus EVs. The investigation was sparked by a dozen reports from consumers of sudden vehicle stalling, Reuters notes.

GM Recalls Nearly 300K Chevy Cruzes for Brake Issue

Ford says that it is cooperating with the investigation, which could potentially lead to a recall.

The agency says that the complaints were made within the last five months. The stalling events were not linked to any accidents and no injuries have been reported.

Vehicles from the 2012 and 2013 model years are affected by the preliminary investigation. In about half of the reports, the vehicles stalled while traveling at speeds greater than 30 miles per hour.

In July, Ford trimmed the base price of the Focus EV by $4,000, echoing similar price cuts by other electric vehicle manufacturers.

The company has recently announced plans to install charging stations at its U.S. offices and factories to encourage electric vehicle use by its workers.

Shares of Ford rose almost 1% in Monday morning trading.

How to Buy Prime Manhattan Real Estate for Less Than $100

Unless you own a home in each of America's 20 biggest cities - or you're an economist - a 12.4% increase in the S&P/Case-Shiller Index doesn't mean much.

You can't make money from a nationwide statistic. Not in real estate...

Cleveland, for example, may have seen a 3.4% increase from July 2012 to July 2013. But that's nothing compared to Los Angeles, where prices jumped 20.8%. Or San Francisco, which posted a 24% year-over-year increase.

Las Vegas prices jumped even higher, up more than 27%.

And then there's New York, where you can make a killing on some prime Manhattan real estate right now...

There's a hassle-free way to do it, too. So you'll never have to worry about tenants, taxes, insurance, maintenance...

You won't need a million-dollar down payment, either.

Thanks to one savvy New York firm, you can start building your own Manhattan real estate empire with less than $100...

You Can Invest in These All-Cash Deals

10 Best Cheap Stocks To Own For 2014

The recent housing and real estate recovery is a double-edged sword. There are amazingly low rates, but it's much harder to get a loan, especially if you're an average borrower.

The real driver of higher prices, particularly in neighborhoods like Beverly Hills and Manhattan, is all-cash international and institutional buyers.

And Vornado Realty Trust (NYSE: VNO) is one of these big buyers.

The Manhattan-based real estate investment trust (REIT) owns more than 28 million square feet of high-end office, retail, and residential space in its home town. (You can tour its New York properties right here.)

It owns high-rent properties in San Francisco, too, and in Washington, D.C.

But this is not your average REIT...

The Dividend Is Just a Bonus

Most people buy REITs because they come with above-average dividends. And Vornado certainly pays a decent one, at 3.4%.

But this is more than an income play. Way more...

First, this REIT comes with billionaire investor Stephen Roth, Vornado's founder. Thanks to his expertise, Vornado has bested the returns on the S&P 500 by a factor of six to one... since 1990.

Second, in addition to its substantive commercial real estate holdings in prime locations throughout the country, Vornado has equity stakes and minority holdings in many well-known businesses. The company currently has a 6% ownership stake in retailer J.C. Penny (NYSE: JCP), a 33% stake in privately owned retailer Toys R Us, and ownership of the landmark Chicago Merchandise Mart.

And third, Vornado is an equity REIT. So, unlike risky mortgage REITS, it's largely immune to the negative pressures of a rising interest rate environment.

That's one of the reasons why Vornado is so well positioned right now. The firm actually invests directly in prime real estate properties. And the rents from these properties are what Vornado uses to generate its income.

And if you buy Vornado's shares today, it'll be your income, too...

Robert Hsu is one of the world's leading financial analysts. He made his mark on the financial world early, first as a quant analyst for a billion-dollar hedge fund, then as a portfolio manager for Wall Street powerhouse Goldman Sachs. He earned his first million at 29 and then retired at 31.

After five years in retirement, Robert founded the world-class money management firm Absolute Return Capital Advisors LLC to help private investors build their wealth. He currently serves as president and lends his special expertise in income investing to his clients and subscribers.

Robert is a published author and appears regularly on national financial TV and radio shows like Bloomberg and CNBC. He graduated from the University of California-Los Angeles with a degree in economics. Robert and his family divide their time between their homes in Beverly Hills and Taipei.

European Stocks Rise for Third Week on Fed Taper Surprise

European stocks climbed for a third straight week after the Federal Reserve unexpectedly refrained from reducing its monthly bond purchases and Lawrence H. Summers withdrew from consideration as chairman of the central bank.

Glanbia Plc (GLB) rallied the most in more than two years as food and beverage shares gained. Hennes & Mauritz AB jumped 6.9 percent after reporting monthly sales that beat estimates. Edenred SA rose 7.8 percent after Raymond James Financial Inc. said margins may improve in 2014. Fresnillo Plc sank 14 percent after missing out on inclusion in a gold-miners gauge.

The Stoxx Europe 600 Index advanced 0.9 percent to 314.2 this past week. The equity gauge has surged 5.7 percent in September, putting it on course for the biggest monthly gain in almost two years. The measure has climbed 12 percent in 2013 as the euro area emerged from recession and central banks pledged to keep borrowing costs low to support the global economy.

"The lack of tapering was a real surprise," Philip Dicken, head of European equities at Threadneedle Asset Management Ltd. in London, said by phone. His firm oversees about $127 billion. "It signals that if the Fed is at all worried about growth, they will not use tapering if it will choke off that growth. It's another net positive for European equities, where life is getting incrementally better."

The Stoxx 600 climbed to its highest level since June 2008 on Sept. 19, a day after the Fed said it needs to see more evidence of lasting improvement in the U.S. economy before slowing bond purchases. Some 44 of 64 economists surveyed by Bloomberg before the decision had predicted that the central bank would start tapering stimulus measures this month.

Summers Withdrawal

The Fed repeated guidance that its target interest rate will remain low for at least as long as unemployment exceeds 6.5 percent, and the outlook for inflation remains no higher than 2.5 percent. Stocks worldwide also rallied this week after Summers withdrew from the running to replace Ben S. Bernanke as Fed chairman, paving the way for Janet Yellen, who investors say will favor slower stimulus reduction.

European equities fell yesterday after Fed Bank of St. Louis President James Bullard said a "small taper" in stimulus is possible next month and as investors awaited Sunday's elections in Germany.

The Bank of England released this week the minutes from its Sept. 4-5 meeting, which showed that officials unanimously concluded there was no need for additional stimulus given the improving outlook for the British economy.

Volatility Declines

The VStoxx Index, a measure of expected volatility in euro-area stocks, slid 8.8 percent to 16.76 this week, the lowest level in a month. National benchmark indexes climbed in 16 of the 18 western-European markets. Germany's DAX added 2 percent, France's CAC 40 rose 2.2 percent and the U.K.'s FTSE 100 gained 0.2 percent.

"Whereas before the news was always getting worse, now it's getting a little better," Dicken said. "That sort of turning point makes a critical difference to equities."

Glanbia rallied 9.2 percent in Dublin for the biggest gain in the Stoxx 600 this week. The Kilkenny, Ireland-based dairy producer led a gauge of food and beverage shares in the Stoxx 600 higher by 2.3 percent. Nutreco NV, the world's biggest maker of fish feed, rose 6.2 percent in Amsterdam.

Banks also climbed. Banco de Sabadell SA surged 9.1 percent for the second-biggest increase in the Stoxx 600. HSBC Holdings Plc raised Spain's fifth-biggest lender to neutral, or hold, from underweight. Unione di Banche Italiane SCPA jumped 7.5 percent after Goldman Sachs Group Inc. said capital-sensitivity at Italian banks is decreasing.

H&M Sales

H&M gained 6.9 percent, the biggest rally in 15 months. Europe's second-largest clothing retailer said revenue at stores open at least a year rose 4 percent in August compared with the same month last year. The average estimate in a SME Direkt survey was for a 2.5 percent increase.

Edenred climbed 7.8 percent for the biggest advance in 18 months. So-called organic-issue volume growth at the French seller of meal and service vouchers may climb 10.5 percent in the third quarter, Raymond James wrote in a report. The firm rates Edenred shares as outperform, similar to a buy recommendation.

Best Medical Companies To Watch For 2014

Remy Cointreau SA (RCO) jumped 6 percent, the most since January. Chinese cognac shipments increased 20.5 percent in August, rising for the first time since January, according to UBS AG, citing from BNIC, a trade association of cognac makers.

Fresnillo tumbled 14 percent for the biggest decline since June. The precious-metals producer wasn't added to the NYSE Arca Gold Miners Index (GDX), after the gauge's methodology was changed to include companies not listed in the U.S.

K+S AG, Europe's biggest potash distributor, sank 8.9 percent. Potash Corp. of Saskatchewan Inc., North America's largest fertilizer producer, said OAO Uralkali's withdrawal from a joint venture with Belarus has paralyzed global markets for the crop nutrient.

Homebuilder Confidence Still High but Buyer Optimism Wanes

NEW YORK (TheStreet) -- Homebuilder confidence remained high in September but signs of waning interest from homebuyers are a cause for concern.

The National Association of Homebuilders/Wells Fargo Housing Market Index, which measures builder confidence in the market for newly built single-family homes, had a reading of 58 in September, unchanged from the previous month. [Read: Ex-JPMorgan Traders Could Face 20 Years in Prison]

The index gauges builder perceptions of current single-family home sales and sales expectations in the next six months as well as their perceptions of traffic of prospective buyers.

A reading over 50 indicates that more builders view conditions as good rather than poor. While builder confidence has remained steady, many are reporting hesitancy on the part of buyers due to the sharp increase in mortgage rates. "Following a solid run-up in builder confidence over the past year, we are seeing a pause in the momentum as consumers wait to see where interest rates settle and as the headwinds of tight credit, shrinking supplies of lots for development and increasing labor costs continue," noted NAHB Chief Economist David Crowe. On Wednesday, the Census Bureau will release housing starts data. Homebuilders are expected to have begun construction on 915,000 homes on an annualized, seasonally adjusted basis in September, according to economists polled by Bloomberg. Builders have actually been slow to ramp up construction despite a shortage of inventory in the market. With the high cost of land, materials and labor, and tight credit conditions, builders have chosen to keep inventory lean and raise prices to boost their margins. But with buyer demand waning, homebuilders may have to reconsider their recent price hikes. [Read: Investment Ideas From Day 1 of the NY Value Investing Congress] Meanwhile, construction activity still is well below normal, according to Trulia's Jed Kolko. That's because the vacancy rate nationally is 10.3%, close to its recession-era peak. There isn't a shortage of housing, just a shortage of homes for sale. Also, household formation at the rate of 746,000 annually is also half of what is considered normal. Household formation and construction won't go back to normal unless the jobs market booms and young adults begin to re-enter the housing market.

Housing has recovered over the past year on low rates and a sharp decline in inventory. With higher rates and increasing inventory, home price gains are expected to slow.

For the recovery to continue, the economy has to continue to expand and create more jobs, or in the absence of that credit would have to loosen.

-- Written by Shanthi Bharatwaj New York.

>Contact by Email. Follow @shavenk

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Nomura Securities Upgrades American Tower Corp. to “Buy” (AMT)

Before the bell on Monday, analysts at Nomura Securities upgraded telecommunication tower site operator American Tower Corp (AMT) due to an industry wide upgrade of telecom tower operators, including the non-dividend paying companies SAB Comm (SBAC) and Crown Castle (CCI).

The analysts upgraded AMT from “Neutral” to “Buy” and now see shares reaching $90, up from the previous price target of $85. This new price target suggests a 22% upside to the stock’s Friday closing price of $73.71.

“Tower industry revenue grew over 20% in 1H13, helped by strong carrier network spending and tower acquisitions,” Nomura analyst Adam Ilkowitz noted. “On an organic basis, we believe site rental revenue growth of ~11% for the tower operators is a sign of the health of the U.S. wireless industry and elevated capital spending. After 30% portfolio growth in 2012 across the three tower operators, profitability is recovering from diluted levels. Despite a still-tepid global economy, carriers are investing in their networks to respond to consumer demands and traffic growth. With our positive outlook and upwardly revised estimates, we are increasing our target prices for AMT and SBAC both from $85 to $90 and raising AMT to a Buy. We are raising our 2014 AFFO estimates for all three operators given strong activity levels and announced acquisitions.”

Hot Biotech Stocks For 2014

Furthermore, the analysts at Nomura lowered AMT’s fiscal 2013 adjusted funds from operations (AFFO) estimates from $3.69 to $3.65, but raised its fiscal 2014 AFFO estimates from $4.25 to $4.50.

American Tower Corp shares were inactive during pre-market trading on Monday. The stock is up 22.83% year-to-date.

7 Stocks Moving on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume today.

Kraton Performance Polymers (KRA)

This company is a producer of styrenic block copolymers and other engineered polymers. This stock closed up 5.3% to $20.76 in Wednesday's trading session.

Wednesday's Volume: 605,000

Three-Month Average Volume: 269,288

Volume % Change: 125%

From a technical perspective, KRA ripped higher here back above its 50-day moving average of $19.96 with above-average volume. This move also pushed shares of KRA into breakout territory, since the stock took out some near-term overhead resistance at $20.07. This move is starting to push shares of KRA within range of triggering another big breakout trade. That trade will hit if KRA manages to take out Wednesday's high of $21.18 and then once it clears more resistance at $22.16 to $23.17 with high volume.

Traders should now look for long-biased trades in KRA as long as it's trending above its 50-day at $19.96 or above Wednesday's low of $19.63, and then once it sustains a move or close above those breakout levels with volume that hits near or above 269,288 shares. If that breakout hits soon, then KRA will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $27.

Net 1 Ueps Technologies (UEPS)

This company is a provider of payment solutions and transaction processing services across multiple industries. This stock closed up 7.5% to $11.92 in Wednesday's trading session.

Wednesday's Volume: 364,000

Three-Month Average Volume: 157,230

Volume % Change: 133%

From a technical perspective, UEPS ripped sharply higher here right above some near-term support at $11 with strong upside volume. This stock recently gapped up sharply from $7 to $11 with strong upside volume. Following that move, shares of UEPS have trended sideways inside of a consolidation chart pattern. This move on Wednesday has now pushed UEPS into breakout territory, since the stock took out the upper-end of its sideways range at $11.63.

Traders should now look for long-biased trades in UEPS as long as it's trending above support at $11, and then once it sustains a move or close above Wednesday's high of $12.18 with volume that hits near or above 157,230 shares. If we get that move soon, then UEPS will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $14 to $15.

Theravance (THRX)

This is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical companies. This stock closed up 2.5% at $38.74 in Wednesday's trading session.

Wednesday's Volume: 1.69 million

Top Dividend Stocks To Buy Right Now

Three-Month Average Volume: 916,688

Volume % Change: 140%

From a technical perspective, shares of THRX jumped modestly higher here back above its 50-day moving average of $37.88 with strong upside volume. This stock has been trending sideways for the last month and change, with shares moving between $39.73 on the upside and $34.76 on the downside. Shares of THRX are now starting to move within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if THRX manages to take out Wednesday's high of $39.28 and then once it clears more resistance at $39.73 with high volume.

Traders should now look for long-biased trades in THRX as long as it's trending above its 50-day at $37.88 or above $36, and then once it sustains a move or close above those breakout levels with volume that hits near or above 916,688 shares. If that breakout hits soon, then THRX will set up to re-test or possibly take out its 52-week high at $42.96.

Treehouse Foods (THS)

This company is a food manufacturer servicing mainly the retail grocery and foodservice distribution channels. This stock closed up 1.3% to $68.30 in Wednesday's trading session.

Wednesday's Volume: 411,000

Three-Month Average Volume: 138,234

Volume % Change: 196%

From a technical perspective, THS trended modestly higher here with above-average volume. This stock recently downtrended badly from its August high of $74.54 to its low of $63.37. During that move, shares of THS were consistently making lower highs and lower lows, which is bearish technical price action. Since hitting that low of $63.37, shares of THS have rebounded sharply and it's now trending within range of triggering a near-term breakout trade. That trade will hit if THS manages to take out some near-term overhead resistance at $68.62 to its 50-day moving average of $68.97 with high volume.

Traders should now look for long-biased trades in THS as long as it's trending above some key near-term support at $67, and then once it sustains a move or close above those breakout levels with volume that hits near or above 138,234 shares. If that breakout triggers soon, then THS will set up to re-test or possibly take out its next major overhead resistance levels at $72 to $74.

Gogo (GOGO)

This company provides a suite of connectivity solutions and other services, including Passenger Connectivity, Passenger Entertainment, In-Flight Portal as well as Operations-Oriented Communications Services. This stock closed up 10.7% at $13.57 in Wednesday's trading session.

Wednesday's Volume: 3.02 million

Three-Month Average Volume: 759,941

Volume % Change: 432%

From a technical perspective, GOGO bounced sharply higher here right above its 50-day moving average of $12.01 with heavy upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $9.71 to its intraday high of $13.75. During that move, shares of GOGO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GOGO within range of triggering a big breakout trade. That trade will hit if GOGO manages to take out some near-term overhead resistance levels at $13.89 to $14.35 with high volume.

Traders should now look for long-biased trades in GOGO as long as it's trending above $13 or $12.50, and then once it sustains a move or close above those breakout levels with volume that this near or above 759,941 shares. If that breakout hits soon, then GOGO will set up to re-test or possibly take out its next major overhead resistance levels at $15.50 to its all-time high at $17.

British American Tobacco (BTI)

This is a holding company that owns, directly or indirectly investments in the numerous companies constituting the British American Tobacco Group of companies. This stock closed up 0.66% at $105.41 in Wednesday's trading session.

Wednesday's Volume: 2.37 million

Three-Month Average Volume: 201,433

Volume % Change: 1122%

From a technical perspective, BTI trended modestly higher here right off its 50-day moving average of $104.64 with heavy upside volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $100.83 to its intraday high of $105.53. During that move, shares of BTI have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in BTI as long as it's trending above its 200-day at $104.13, and then once it sustains a move or close above Wednesday's high of $105.53 to more resistance at $106 with volume that hits near or above 201,433 shares. If we get that move soon, then BTI will set up to re-test or possibly take out its next major overhead resistance levels at $107.53 to $110.

Xoom (XOOM)

This company provides online consumer-to-consumer international money transfers in close to 30 countries. The company's customers use its website to send money to friends and families in these countries. This stock closed up 5.5% at $32.38 in Wednesday's trading session.

Wednesday's Volume: 3.96 million

Three-Month Average Volume: 265,931

Volume % Change: 1201%

From a technical perspective, shares of XOOM gapped sharply higher here and broke out above some near-term overhead resistance at $32 with heavy upside volume. This stock recently pulled back sharply from its July high of $36.46 to its recent low of $26.34. It looks like the downside volatility for XOOM is over in the short-term now that this stock has trended back above its 50-day with heavy upside volume flows.

Traders should now look for long-biased trades in XOOM as long as it's trending above $30, and then once it sustains a move or close above Wednesday's high at $33.46 with volume that's near or above 265,931 shares. If we get that move soon, then XOOM will set up to re-test or possibly take out its 52-week high at $36.46.

-- Written by Roberto Pedone in Delafield, Wis.

 

RELATED LINKS:

 

>>5 Tech Stocks Spiking on Big Volume

 

>>5 Stocks Setting Up to Break Out

 

>>4 Red-Flag Stocks to Sell This Fall

 

Follow Stockpickr on Twitter and become a fan on Facebook.

 

At the time of publication, author had no positions in stocks mentioned.

 

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Should the Big Banks Really Face Another Credit Downgrade?

The big banks have gone to considerable lengths to mend the weaknesses that they were in before, during and after the recession. The public perception of the big banks is not very highly regarded. Now the banks are apparently at risk of yet another credit rating downgrade. Late on Thursday came word out of Moody’s Investors Service that the credit ratings agency has placed the senior and subordinated debt ratings of the six largest U.S. bank holding companies on review “as it considers reducing its government (or systemic) support assumptions to reflect the impact of U.S. bank resolution policies.”

Moody’s signaled that the four on review for downgrade are Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS), both of which are bank holding companies with no retail banking operations, as well as J.P. Morgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC).

Where the rating changes become a wild card are in Bank of America Corp. (NYSE: BAC) and Citigroup Inc. (NYSE: C). These two were placed on “review direction uncertain” as Moody’s “considers the potentially offsetting influence of improvements in the standalone credit strength of their main operating subsidiaries, the ratings on which were simultaneously placed on review for upgrade.”

Two additional banks with ratings previously placed on review for a credit rating downgrade also were included in the review: Bank of New York Mellon Corp. (NYSE: BK) and State Street Corp. (NYSE: STT).

Moody’s said:

The ratings on the bank-level subordinated debt of JP Morgan Chase Bank N.A. and Wells Fargo Bank N.A. were placed on review for downgrade, while those at Bank of America N.A. are on review direction uncertain. The bank-level subordinated debt ratings of The Bank of New York Mellon and State Street Bank and Trust, which were previously placed on review for downgrade, are also included in the review. There is no rated bank-level subordinated debt outstanding at Citibank N.A., Goldman Sachs Bank USA or Morgan Stanley Bank N.A. … Moody’s actions follow its March 2013 announcement that it would reassess its support assumptions for bank holding companies in the US and that it would consider whether to revise these assumptions by the end of the year.

The ratings placed on review for a downgrade were as follows:

Goldman Sachs Group Inc. (A3 senior, Baa1 subordinated and Baa3 (hyb) trust preferred vehicles) J.P. Morgan Chase & Co. (A2 senior, A3 subordinated, Baa2 (hyb) trust preferred vehicles and Prime-1 short-term rating); J.P. Morgan Chase Bank N.A. (A1 subordinated) Morgan Stanley (Baa1 senior, Baa2 subordinated, Ba1 (hyb) trust preferred vehicles and Prime-2 short-term rating) Wells Fargo & Company Inc. (A2 senior, A3 subordinated, Baa1 (hyb) trust preferred vehicles and Prime-1 short-term rating); Wells Fargo Bank, N.A. (A1 subordinated and A3 (hyb) trust preferred vehicles) Bank of America Corp. (Prime-2 short-term rating) Citigroup, Inc. (Prime-2 short-term rating)

The following ratings continue to be on review for downgrade:

The Bank of New York Mellon Corp. (Aa3 senior, A1 subordinated, A2 (hyb) trust preferred vehicles and Baa1 (hyb) noncumulative preferred); The Bank of New York Mellon (B bank financial strength rating (BFSR)/aa3 baseline credit assessment (BCA), Aa1 deposits and senior and (P)Aa2 subordinated) State Street Corp. (A3 (hyb) trust preferred vehicles and Baa1 (hyb) noncumulative preferred); State Street Bank and Trust Co. (B BFSR/aa3 BCA, Aa2 deposits and senior and Aa3 subordinated)

The following ratings were placed on review for upgrade:

Bank of America, N.A. (D+ BFSR/baa3 BCA, A3/Prime-2 deposits and senior); Bank of America Corp. (B1 (hyb) noncumulative preferred) Citibank, N.A. (D+ BFSR/baa3 BCA, A3/Prime-2 deposits and senior); Citigroup Inc. (B1 (hyb) noncumulative preferred)

The following ratings were placed on review direction uncertain:

Bank of America Corp. (Baa2 senior, Baa3 subordinated and Ba2 (hyb) trust preferred vehicles); Bank of America, N.A. (Baa1 subordinated) Citigroup Inc. (Baa2 senior, Baa3 subordinated and Ba2 (hyb) trust preferred vehicles) State Street Corp. (A1 senior, A2 subordinated)

Is McDonald’s Tastier Than Burger King and Wendy’s?

With shares of McDonald's Corp. (NYSE:MCD) trading at around $101.72, is MCD an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

For those who haven't already heard, Technomic recently conducted a survey on Informal Eating Out establishments, including McDonald's, Burger King Worldwide (NYSE:BKW), and The Wendy's Company (NYSE:WEN). Below are the results:

Food Quality

1st Place: Wendy's

2nd Place: Burger King

3rd Place: McDonald's

Taste & Flavor

1st Place: Wendy's

2nd Place: Burger King

3rd Place: McDonald's

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You don't have to be a statistician to see a pattern forming here. However, the irony is that McDonald's dominates when it comes to running a business, and it has been the best investment of the three throughout the years. In addition to the most impressive stock appreciation, McDonald’s also offers the highest yield. McDonald's currently yields 3 percent whereas Burger King yields 1.30 percent and Wendy's yields 2.60 percent.

McDonald's is an exceptional performer when it comes to branding. It's the fourth most valuable brand in the world behind IBM (NYSE:IBM) (3rd), Google (NASDAQ:GOOG) (2nd), and Apple (NASDAQ:AAPL) (1st).

This doesn't mean that McDonald's is free of problems. It has too many menu items – 145 items to be exact. McDonald's better not sign up for an episode of Kitchen Nightmares. Chef Ramsay would tear the place apart. Having this many menu items has also led to slower food service. Considering many diners look at McDonald's as a fast food establishment – regardless of what McDonald's wants to call itself – this is a big negative. That said, it’s an easy problem to fix since many of the menu items are repetitive. Thankfully, McDonald's is reworking the menu. It's also going through a store reimaging process. This will lead to increased near-term costs, but it should also lead to increased market share over the long haul.

Now let's get to some numbers. Below is a chart comparing fundamentals for McDonald's, Burger King, and Wendy's.

	MCD	BKW	WEN
Trailing P/E	18.97	48.49	N/A
Forward P/E	16.39	20.78	26.65
Profit Margin	19.79%	8.07%	-0.12%
ROE	36.59%	12.07%	-0.23%
Operating Cash Flow	7.02B	250.20M	238.16M
Dividend Yield	3.00%	1.30%	2.60%
Short Position	1.10%	12.00%	9.40%

Let's take a look at some more important numbers prior to forming an opinion on this stock.

T = Technicals Are Strong

McDonald’s has been a steady winner over the past three years. This should come as no surprise.

	1 Month	Year-To-Date	1 Year	3 Year
MCD	2.23%	16.74%	15.63%	65.21%
BKW	3.35%	15.30%	-0.53%	-0.53%
WEN	13.33%	31.16%	37.56%	50.21%

At $101.72, McDonald’s is trading above its averages.

50-Day SMA	101.28
200-Day SMA	94.50

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for McDonald’s is close to the industry average of 0.90. Debt management has been good over the years, but there are now concerns about increased debt ratios due to consistent buybacks.

	Debt-To-Equity	Cash	Long-Term Debt
MCD	0.84	1.87B	12.80B
BKW	2.55	598.80M	3.05B
WEN	0.74	428.68M	1.46B

E = Earnings Are Steady

Earnings and revenue have steadily increased on an annual basis. However, the pace has slowed.

Fiscal Year	2008	2009	2010	2011	2012
Revenue ($) in millions	23,522	22,745	24,075	27,006	27,567
Diluted EPS ($)	3.76	4.11	4.58	5.27	5.36

When we look at the last quarter on a year-over-year basis, we see an increase in revenue and earnings. That said, both revenue and earnings declined on a sequential basis.

Quarter	Mar. 31, 2012	Jun. 30, 2012	Sep. 30, 2012	Dec. 31, 2012	Mar. 31, 2013
Revenue ($) in millions	6,546.60	6,915.90	7,152.40	6,952.10	6,605.30
Diluted EPS ($)	1.23	1.32	1.43	1.38	1.26

Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

Conclusion

McDonald's is one of the strongest brands in the world. For that reason alone, it would be unwise to bet against McDonald's. This doesn't mean a long position should be initiated. It simply means that shoring the stock would be extremely risky.

Buhler Industries: A Farm King In The Making

Buhler Industries Inc. (TSX: BUI) is headquartered in Winnipeg, Manitoba, Canada. The company was established in 1932 as an agricultural equipment manufacturer. It was purchased by John Buhler in 1969 and in 2007, Combine Factory Rostselmash Ltd. acquired 80% of the company's stock. Through steady expansion, new products and distribution channels, and acquisitions, Buhler has experienced impressive growth. With seven manufacturing plants across Canada and the United States as well as a great collection of brands like Farm King, Allied, Inland, and Versatile, this vertically-integrated manufacturer is an excellent way to invest in the global agricultural boom.

As of Wednesday, September 4th, Buhler's share price was $6.10 or 5.1x EV/EBITDA and 0.85x Price/Book. I believe the company is worth at least $11.25 per share or 9x EV/EBITDA and 1.57x Price/Book (over an 80% premium). Most of Buhler's competitors are trading at significantly higher valuations. For example, Deere & Company (NYSE: DE) is valued at 9.4x EV/EBITDA and 3.8x Price/Book. Caterpillar (NYSE: CAT) is trading at 9.4x EV/EBITDA and 3.1x Price/Book, and CNH Global (NYSE: CNH) is currently valued at 8.0x EV/EBITDA and 1.2x Price/Book. Kubota (OTC: KUBTY) is trading at 10.2x EV/EBITDA and 1.7x Price/Book. Even smaller competitor, Art's Way Manufacturing (NASDAQ: ARTW) is valued higher at 7.2x EV/EBITDA and 1.54x Price/Book.

5 Best Penny Stocks To Buy Right Now

The beauty of Buhler is that it is compounding its book value at roughly 13% per year with an EBITDA CAGR of 23% (run-rate over the past 5-6 years). Going forward, there should be significant opportunity for margin expansion and working capital reductions. Over the past several years, the company has invested heavily in new product development (an additional $5-6 million per year in R&D spending) and inventory. Buhler is currently sitting on $152 million of invento! ry, meaning that it's turning inventory only 2x per year or approximately every 185 days. Improving its inventory turns to 3x per year (which is a very reasonable expectation) would generate an additional $52 million of cash. On a "last twelve months" basis, the company generated $32.3 million of EBITDA. Therefore, a $52 million reduction of inventory could contribute 1.6 turns to Buhler's EV/EBITDA valuation.

Currently the company has 25 million shares outstanding. Twenty million shares (80%) are held by the company's largest shareholder, Combine Factory Rostselmash Ltd., 3.8 million shares (15%) are held by John Buhler, and 1.2 million shares (5%) are publicly traded. Therefore, it's only a matter of time before the public float gets acquired by long-term shareholders, and the stock trades significantly higher.

Buhler is a well-managed company (with very minimal capital expenditures) poised to benefit from a farming industry flush with cash. I think it has the potential to be a multi-bagger over the next several years.

Source: Buhler Industries: A Farm King In The Making

Disclosure: I am long BIIAF.PK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Additional disclosure: I am long shares of Buhler Industries (TSX: BUI) as are the accounts that I manage.

An Important Update on America's Natural Gas Boom

America's shale gas revolution just took another step forward...

 

Last week, the Department of Energy (DOE) approved the country's third natural gas export facility.

 

As I explained in February, recent studies show the huge economic benefits of exporting natural gas. It will create millions of new jobs and generate billions of dollars in new income for the government, which is in dire need of more revenue.

 

Nearly two dozen natural-gas-export projects are awaiting the DOE's approval. I expect at least half of them to get it in the coming months.

 

It's time to buy in to this megatrend before it's too late. Let me explain...

 

As regular Growth Stock Wire readers know, the U.S. has tapped into huge natural gas deposits over the last five years. Meanwhile, the world is starving for natural gas.

 

You see, the natural gas market is not a typical "global" market, like the markets for crude oil and copper. It's much harder to ship.

 

Because it doesn't have an extensive transportation network, natural gas prices have their own individual markets. In the U.S., where we have a huge supply, prices are extremely low. But in most countries, natural gas is harder to find, so prices are much higher. As you can see in the map, natural gas prices are 150%-300% higher in other major markets.

 

 

That "spread" has created a tremendous opportunity for our country to export natural gas.

 

Two years ago, Cheniere Energy was the first company licensed to build a liquefied natural gas (LNG) export facility in Louisiana. The second approval happened in May... when the government gave permission to LNG terminal operator Freeport LNG to export natural gas from its Quintana Island, Texas facility.

 

The third approval came just last week... The terminal will be built in Lake Charles, Louisiana. Once operational, up to 2 billion cubic feet (bcu) of natural gas will be exported each day to countries around the world.

 

But these three facilities are just the beginning. I expect more and more facilities to gain approval in the next 12-18 months.

 

A lot of companies like Westport Innovations (natural gas engines), Clean Energy Fuels (natural gas fueling stations), and Cheniere Energy (natural gas exporter) will start to see the benefits of these approvals almost immediately. But the biggest beneficiaries will be the companies that own and build the infrastructure needed to export natural gas.

 

A handful of firms have been in this business for over a decade – including Chicago Bridge & Iron (CBI) and KBR (KBR). And in May, I told you to buy these names on a pullback.

 

We haven't had much luck with getting a pullback with CBI. The stock – which receives more than 30% of its revenue from LNG projects – is trading near its 52-week high.

 

KBR, however, has pulled back about 10% in the past month. The stock fell after lowering its 2013 full-year earnings guidance. Most of the weakness was due to LNG project delays. KBR gets 40% of its revenues from LNG projects. The company expected to receive contracts in late 2013. It now sees these contracts hitting the bottom line early next year.

 

I suggest using this pullback to buy shares. The stock is now trading at 11 times forward earnings. That's cheap compared to the average S&P 500 stock – which trades around 15 times earnings. KBR also has a super-strong balance sheet.

 

The company is a key player in a high-growth market. And based on its strong fundamentals and growth, a larger competitor or private-equity firm may make a bid for KBR.

 

I wouldn't wait too long to buy the stock. With the DOE likely to approve several new projects over the next several months, it's just a matter of time before KBR receives new contracts. Once this happens, the stock will ramp higher... just like CBI.

 

Good investing,

 

Frank Curzio

Top 10 Best Foreign Countries for Retirement: 2013

Many groups and publications offer help in finding the best place to spend those retirement years. Obviously, everyone has an idea of what makes for paradise, but there are criteria that can help with the decision.

Two years ago, we looked at the Top 7 Cheap, Easy Foreign Cities to Retire as enumerated by International Living magazine. This year, we are revisiting the idea of foreign locales, this time by country.

International Living has rated countries on eight categories: real estate, special benefits, cost of living, ease of integration for foreigners, entertainment and amenities, health care, retirement infrastructure and climate.

The magazine looked at cost for a variety of things from Internet connections to food and talked to foreigners who have made the move to measure out more subjective parameters like how easy it is to make friends.

Of the 22 countries rated, the Dominican Republic finished at the bottom with an average score of 71. To find out which countries were highly rated, check out the Top 10 Best Foreign Countries for Retirement:

10. MALTA: 80.1

Real Estate: 87
Special Benefits: 72
Cost of Living: 81
Integration: 100
Entertainment & Amenities: 68
Health: 82
Retirement Infrastructure: 77
Climate: 75

Boasting a climate typical of the Mediterranean, the 415,000 residents of the Maltese islands enjoy warm winters and hot, dry summers. Malta became independent in 1974, ending nearly two centuries of British rule. The nation joined the European Union in 2004. The economy is driven by tourism, industry and services.

9. THAILAND: 82.3

Real Estate: 82
Special Benefits: 57
Cost of Living: 97
Integration: 87
Entertainment & Amenities: 96
Health: 81
Retirement Infrastructure: 77
Climate: 81

Equal in size to Spain, Thailand is the only nation in Southeast Asia not to be colonized by the European colonial powers. Its 65 million citizens live by constitutional monarchy. Temperatures range from 66 to 100 degrees, and the year can be divided into two seasons: hot and cool. Exports account for 60% of the country's GDP.

8. SPAIN: 82.5

Real Estate: 87
Special Benefits: 57
Cost of Living: 80
Integration: 83
Entertainment & Amenities: 96
Health: 80
Retirement Infrastructure: 93
Climate: 83

Spain, home to 50 million citizens, has three distinct climate zones: Mediterranean, semiarid and oceanic. This diversity offers weather to suit everyone. With nearly 5,000 miles of beaches, the country, ruled by parliamentary monarchy, has plenty of places to kick back and relax.

7. COLOMBIA: 83.0

Real Estate: 94
Special Benefits: 75
Cost of Living: 70
Integration: 90
Entertainment & Amenities: 82
Health: 84
Retirement Infrastructure: 83
Climate: 86

One thing Colombia has in common with the U.S. is that it has coasts on both the Pacific and the Atlantic, the only South American nation that can claim that distinction. Situated near the equator, Colombia has five climate zones inluding steppes, tropical rain forests, savannahs and mountain climate. The country lives under republican rule.

6. URUGUAY: 83.7

Real Estate: 87
Special Benefits: 72
Cost of Living: 69
Integration: 83
Entertainment & Amenities: 94
Health: 91
Retirement Infrastructure: 82
Climate: 86

Located on the east coast of South America, Uruguay is the size of Oklahoma. The country has 120 miles of Atlantic coastline, low plateau and a rolling plain. The constitutional republic has 3.3 million residents and variable weather with cool winters and warm to hot summers depending on location.

5. COSTA RICA: 84.4

Real Estate: 89
Special Benefits: 85
Cost of Living: 87
Integration: 90
Entertainment & Amenities: 94
Health: 86
Retirement Infrastructure: 73
Climate: 71

With a population of 4.6 million in an area slightly bigger than the combined area of New Hampshire and Vermont combined, Costa Rica includes a coast on the Pacific Ocean with good surfing and a coast on the Caribbean Sea with a rain forest. The democratic republic has a rainy season that runs from May to November, which consists of sunny morning and rainy afternoons. Trade winds in January and February make for cooler days.

4. MEXICO: 85.1

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Real Estate: 92
Special Benefits: 71
Cost of Living: 82
Integration: 100
Entertainment & Amenities: 100
Health: 84
Retirement Infrastructure: 74
Climate: 78

With a population of 112 million, the United States' large neighbor to the south (it's one-fifth as big) offers beaches, big-city life and mountains. And, except on the peaks, you won't have to worry about dealing with snow.

3. MALAYSIA: 87.6

Real Estate: 89
Special Benefits: 77
Cost of Living: 92
Integration: 90
Entertainment & Amenities: 100
Health: 93
Retirement Infrastructure: 85
Climate: 75

Slightly bigger than New Mexico, Malaysia sits on the Malay peninsula and is home to 26 million people. The nation is heavily forested and a mountain range runs its entire length. Ruled by constitutional monarchy, the citizens enjoy year-round temperatures in the mid-80s during the day and upper 60s at night. 

2. PANAMA: 89.0

Real Estate: 83
Special Benefits: 100
Cost of Living: 86
Integration: 93
Entertainment & Amenities: 95
Health: 85
Retirement Infrastructure: 81
Climate: 88

About 3.5 million people call Panama home. The country, about the size of South Carolina, is ruled by constitutional democracy and boasts its namesake canal, the passageway between the Carribbean Sea and the Pacific Ocean. The weather varies by region, but the humidity and temperature are often lower than in Florida. Be aware, the Panamanian winter and summer seasons are reversed from their U.S. counterparts.

1. ECUADOR: 91.9

Real Estate: 99
Special Benefits: 99
Cost of Living: 90
Integration: 90
Entertainment & Amenities: 95
Health: 83
Retirement Infrastructure: 79
Climate: 100

On the Pacific coast of northwest South America, Ecuador is home to 15.2 million people in an area about the size of Nevada. The Andes, with tall volcanic peaks, cross the nation in two ranges. The Galapagos Islands have been a part of Ecuador since 1832. Being directly on the equator means the country has 12 hours of daylight every day of the year. However, temperature can range from temperate at the beaches to cold in the mountains. 

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Check out these other Top 10 lists on AdvisorOne:

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Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Orient-Express Hotels (NYSE: OEH  ) , whose recent revenue and earnings are plotted below.

Top Stocks To Invest In: Prospero Silver Corp (PSL.V)

Prospero Silver Corp., together with its subsidiary, Minera Fumarola S.A. de C.V., engages in the acquisition, exploration, and development of mineral properties in Mexico. The company primarily explores for gold, silver, and base metals. Its properties include the Campana property consisting of 9 titled claims with an area of 6,035 hectares and an untitled claim of 7,226 hectares in north-central Durango; San Luis del Cordero project situated in Durango City in Durango state; Baborigame property comprising 8 claims with an area of 8,736 hectares located to the southwest of Chihuahua city in Chihuahua state; and Santa Maria del Oro project covering 33,800 hectares situated in Durango state. The company was founded in 2008 and is headquartered in Richmond, Canada.

Top Stocks To Invest In: Angle Energy Inc He Co.] (NGL.TO)

Angle Energy Inc. engages in the exploration, exploitation, development, and production of oil and natural gas reserves in Western Canada Sedimentary Basin, Canada. The company focuses on the recovery of liquids-rich natural gas and light crude oil. It owns interests in various properties located in the areas of Harmattan, Ferrier, Edson, and Lone Pine Creek in Alberta. As of December 31, 2011, the company had proved plus probable reserves of 18,575 thousand barrels of oil equivalent; and controlled 88,318 net acres of land. Angle Energy Inc. was founded in 2004 and is headquartered in Calgary, Canada.

Best Value Companies To Watch For 2014: Pacer International Inc.(PACR)

Pacer International, Inc., together with its subsidiaries, provides asset-light transportation and logistics services primarily in North America, Asia, Europe, Australia, South America, and Africa. It operates in two segments, Intermodal and Logistics. The Intermodal segment offers intermodal rail transportation, local cartage and trucking, intermodal marketing services, container capacity, on-site operational services, and door-to-door shipment management services. As of December 31, 2011, its equipment fleet consisted of 1,592 double-stack railcars, 18,183 containers, and 12,783 chassis. The Logistics segment provides highway brokerage, warehousing and distribution, international freight forwarding, ocean and air shipping, and supply chain management services, as well as offers non-vessel-operating common carrier to end-user customers. The company markets and supports its services to cargo owners, steamship lines, truckload carriers, truck brokers, and freight forwarders , as well as other third party transportation service providers, such as intermodal marketing companies, third-party logistics companies, and shippers? agents through its direct sales and customer service representatives. Pacer International, Inc. was founded in 1974 and is headquartered in Dublin, Ohio.

Top Stocks To Invest In: Pearl Healthcare Ltd(PHL.AX)

Pearl Healthcare Limited, together with its subsidiaries, operates a network of dental laboratories that offer various products and services for dental professionals and their patients in Australia. It offers bridges, crowns, chrome castings, dental implants, acrylic products, prosthetics, orthodontics, and sleep appliances. The company operates approximately 11 laboratories. Pearl Healthcare Limited is headquartered in Fitzroy, Australia.

Top Stocks To Invest In: ABAXIS Inc.(ABAX)

Abaxis, Inc. develops, manufactures, markets, and sells portable blood analysis systems for use in veterinary or human patient-care setting to provide blood constituent measurements for clinicians worldwide. The company offers point-of-care blood chemistry analyzer, which consists of a compact portable analyzer and a series of single-use plastic discs, called reagent discs, containing all the chemicals required to perform a panel of up to 14 tests on human patients and 13 tests on veterinary patients. It markets the blood analysis system under the Piccolo Xpress and Piccolo Classic names in the medical market; and under the VetScan VS2 and VetScan Classic names in the veterinary market. The company also provides VetScan HM5, VetScan HM2, VetScan HMII, and VetScan HMT hematology instruments for veterinary applications. In addition, its products include VetScan VSpro, which assists in the diagnosis and evaluation of suspected bleeding disorders, toxicity/poisoning, evaluatio n of disseminated intravascular coagulation, hepatic disease, monitoring therapy, and the progression of disease states. Further, the company offers VetScan VSpro fibrinogen test to provide in-vitro determination of fibrinogen levels in equine platelet poor plasma from a citrated stabilized whole blood sample; and i-STAT 1 that delivers blood gas, electrolyte, basic blood chemistry, and hematology results. Additionally, its products comprise Canine Heartworm Rapid Test to detect dirofilaria immitis in canine whole blood, serum, or plasma; Canine Parvovirus Rapid Test Kit to detect canine parvovirus antigen in feces; and VetScan Giardia Rapid Test to detect giardiasis, a gastrointestinal infection caused by the protozoan parasite Giardia. Abaxis sells its products through direct sales force and independent distributors. The company was founded in 1989 and is headquartered in Union City, California.