Top 6 Stocks to Buy for February in 2012

With business inventories low, manufacturing up in December, an increase in housing starts in November, consumer confidence up, and the unemployment rate falling, the economy appears to be slowly improving. But global issues and especially problems in the EU still plague the market.
January started on a positive note with the Dow up over 3%, thus the familiar saying, “As goes the first week of the new year, so goes the month and so goes the year,” was frequently repeated. But on Jan. 26, the Dow and the S&P 500 executed “daily reversals,” and since then prices have been falling. All of our internal and sentiment indicators are overbought, and so the market could end the month on a negative yet still have delivered one of the most impressive bullish performances in years.
It is important for investors to focus on high-quality stocks that pay dividends and/or have a history of regular dividend increases. Some also have stock buyback programs in place to use part of their cash and reduce the number of shares trading. Both strategies should have a positive long-term impact on the companies’ stocks.
Here are your top stocks to buy for February:

Top Stock to Buy #1 – Barrick Gold Corp. (ABX)

Barrick Gold Corp. (NYSE:ABX), an acquirer, explorer and developer of gold, copper, silver and zinc, is charted using monthly rather than daily data. This long-term chart clearly shows a bullish cup-and-handle formation. But for the stock to break out it must close above $55. If ABX breaks $55, look for a major rally to $75 to $80.
Earnings are estimated at $4.94 in 2011 and $5.58 in 2012. The dividend yield is 1.21%. This stock is rated a “five-star strong buy” by S&P with a 12-month target of $80.

Top Stock to Buy #2 – Chevron Corp. (CVX)

Chevron Corp. (NYSE:CVX) primarily engages in exploration, refining, transportation and storage of crude oil and natural gas. The stock has formed a neckline at $110 after establishing a double-bottom. The overall pattern is an inverse head-and-shoulders — a very bullish development. All that is required to trigger a strong buy is for the stock to close above the neckline. This is a huge bullish formation with a technical target of $132.
S&P has CVX rated a “five-star strong buy” with a target of $132. The consensus estimated earnings for 2011 are $14.02 and $13.65 for 2012. The annual dividend is $3.24, providing a yield of 3.12%. The company is expected to continue to increase dividends and is executing a share buyback program.
Top Stock to Buy #3 – H.J. Heinz Co. (HNZ)
H.J. Heinz Co. (NYSE:HNZ), a producer of a wide variety of food products, has a new, more aggressive corporate strategy. Acquisitions in “emerging markets” began two years ago, and in 2011 that new direction accounted for 16% of total sales. Earnings for FY 2011 were $3.06 and are estimated to be $3.30 in FY 2012. HNZ has a dividend yield of 3.71% and a history of increasing dividends. The fundamental target for HNZ is $60.
Technically the stock has double-bottomed at $48 and formed a neckline of resistance at $54.50. A recent buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), tells us to buy now for a breakout and run to $62.

Top Stock to Buy #4 – United Health Group (UNH)

The diversified United Health Group (NYSE:UNH) provides health care programs and retirement plans, has a life sciences group, and provides health plans to physicians, clinical services, etc.
Credit Suisse analysts consider UNH to be the best-positioned company in its field and look for earnings of $4.85 this year compared to $4.73 in 2011, and an increase to $5.60 in 2013. UNH has a dividend yield of 1.27%.
Technically the stock has consolidated in a broad cup. A break through $54 should produce a trading target of $62.
Top Stock to Buy #5 – Verizon Communications (VZ)
Verizon Communications’ (NYSE:VZ) earnings are expected to grow to $2.50 next year, up from $2.23 in 2011, and strong operating margins and network quality are expected to attract customers to its 3G and 4G networks.
The communications sector has been one of the strongest in the closing months of 2011, and VZ has been a leader of the group. But the sector, and Verizon, may have run too far too fast. An increase in sellers and a short-term sell signal from its stochastic warn that a correction is likely.
Buy VZ on a pullback under $38 for a longer-term advance to the mid-$40s.
Top Stock to Buy #6 – Whole Foods Market (WFM)
Whole Foods Market (NASDAQ:WFM), the operator of the largest chain of natural food supermarkets in theUnited States, appears headed to new highs. Sales are expected to increase by 15% in 2012, and earnings are estimated to increase to $2.27 from $1.93 in 2011 and $1.43 in 2010. The adoption of a new price strategy, more lower-priced offerings, and an expansion plan are expected to lead to better-than-average industry growth. The dividend will likely be increased from the current 56 cents per share, and the repurchase of shares is expected.
Technically WFM has been in a powerful bull channel for over a year, and while there is no reason to expect a change, the stock is currently in a correction and will most likely hold at the lower support line of the channel at the 50-day moving average at $70 where it should be bought. The target for a trade is $80 by the end of March. Longer-term buyers should expect continued growth and higher prices.

3 Undervalued Tech Stocks to Buy in 2012

When investors see the words “undervalued tech stocks,” the first companies that jump to mind are probably the mega-cap giants like Cisco (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT). The large-cap space certainly has more than its share of cheap tech stocks, but a look into mid- and small-cap territory reveals other, less talked-about opportunities. Computer Sciences (NYSE:CSC), Lexmark International (NYSE:LXK), and China Digital TV (NYSE:STV), are three such stocks that deserve more attention than they receive.
3 Undervalued Tech Stocks to Buy in 2012 - Computer Sciences
Shares of CSC, an IT-outsourcing company, have been pummeled from a February high above $56 to $37.20 on Wednesday. The stock has been hit by less-than-stellar earnings results and concerns that the U.S. government’s perilous fiscal situation will weigh on the 39% of CSC’s business that comes from federal contracts. That’s undoubtedly a legitimate worry, but also one that is well-known at this point. At 7.3 times 2012 estimates (and a price-to-earnings-to-growth ratio of 0.9) and a share price sitting at 0.8 times book value, it appears that the bad news is fully discounted in the stock. Two other key points regarding CSC: first, the stock yields 2.2% – much better than you’ll find with the average large-cap tech stock. Second, the company is cash-rich and is frequently mentioned as a target of a buyout. Betting on a takeover is always a dicey proposition, but CSC offers investors a solid risk-reward tradeoff even without the benefit of a buyout.
Keep in mind: The last time CSC’s P/E was at this level, the stock traded up 25% in less than two months.
3 Undervalued Tech Stocks to Buy in 2012 - Lexmark International
A maker of printers, ink, and imaging products, Lexmark has seen its shares come under heavy selling pressure since late 2010 – a trend that wasn’t helped by its May earnings miss. While the printing business is indeed in gradual decline, it may finally be time to say “enough is enough” regarding the downturn in Lexmark’s share price. After hitting a high above $47 in mid-October, the stock now stands at $28.62. At this level, the stock trades at forward P/E of less than 7x, and removing the net cash of $7 a share (about a quarter of its market cap) on its balance sheet brings the P/E below 5.5x. A low P/E can be a trap when growth is slowing, of course, but the company’s core ink business continues to generate substantial free cash flow. And like CSC, Lexmark has the added benefit of being a strong candidate for an eventual takeover.
Keep in mind: The recent selloff has driven LXK’s valuation to its lowest level in history.
3 Undervalued Tech Stocks to Buy in 2012 - China Digital TV
The smallest of the three companies discussed here, China Digital could offer big potential to patient investors. The company makes smart cards that allow the conversion of an analog signal to digital. A boring business perhaps, but consider that China is the world’s largest TV market with 377 million viewing households. Of these, 187 million have cable and only 90 million currently have a digital signal. This adds up to a stellar growth opportunity for a company with no debt and over 70% of its market cap accounted for by the $214 million of cash on its balance sheet. The stock trades for less than 7x 2012 earnings estimates and a PEG of just over 0.4. Chinese stocks are not without risk, as 2011 has taught us, but patient investors who tune into STV may be in for quite a show.

Keep in Mind: Like LXK, CSC trades at an all-time low P/E.
Technology investing has been no picnic for investors thus far in 2011, but these stocks provide a compelling margin of safety in the event of further volatility in the months ahead.

Best Energy Stocks Pick For 2013

President Obama made a speech where he announced a goal of cutting oil imports by a third over the next decade. He included a pledge to have federal agencies buy only alt-fuel vehicles by 2015 and a promise to expand U.S. oil exploration and production.
Transitioning half the cars and trucks in the U.S. to natural gas transportation over the next 5 to 10 years could reduce foreign oil imports by 5 million barrels every day.
So natural gas is an obvious play. Renewable/alternative fuels are other good choices.
Here are my four best picks that could make investors a bundle from  the President’s new policy:
Best Energy Stocks Pick For 2013#1—
Clean Energy Fuels (CLNE)
The company owns and/or supplies more than 200 natural gas fueling stations across the U.S. and Canada. It serves over 320 fleet customers operating over 20,000 natural gas vehicles. The customers can use Clean Energy’s fuel stations to tank up their vehicles with compressed natural gas (CNG) or liquefied natural gas (LNG).
Clean Energy Fuels also provides natural gas vehicle systems and conversions for taxis, limousines, vans, pick-up trucks, and shuttle buses through its BAF subsidiary in Texas. Clean Energy helps customers buy and finance natural gas vehicles and obtain government incentives.
The company buys CNG from local utilities and produces LNG at its two plants (in California and Texas) with a combined capacity of 260,000 gallons per day.
Clean Energy owns and operates an LNG liquefaction plant near Houston, Texas, which it calls the Pickens Plant, capable of producing up to 35 million gallons of LNG per year.
And investors who buy CLNE won’t be alone …
Founder and billionaire oilman T. Boone Pickens owns a sizeable chunk of Clean Energy.
Best Energy Stocks Pick For 2013 #2—
Westport Innovations (WPRT)
This company makes natural gas engines for forklifts, oilfield services engines, trucks and buses and automobiles. Its 50-50 joint venture Cummins Westport project builds natural gas vehicle engines for trucks and buses that could refill at the clean energy stations built by Clean Energy.
It made revenues of $154 million in the last year and isn’t close to profitability yet. But a concerted push toward natural-gas powered vehicles could change that.
WPRT is at the top of its 52-week range. So I’d wait for a pullback.
Best Energy Stocks Pick For 2013 #3—
Talisman Energy (TLM)
Talisman had 1.4 billion barrels of oil equivalent in reserves last year. It has material positions in three world-class, liquids-heavy shale plays in North America: The Marcellus shale (Pennsylvania), Montney shale (British Columbia) and Utica shale (Quebec). It is also expanding its Eagle Ford shale properties, in a 50-50 joint venture with Statoil.
The company also signed two $1.05 billion deals with Sasol of South Africa. This partnership is sketching out plans for a new multibillion-dollar facility near Edmonton that could process as much as a billion cubic feet of natural gas a day into 96,000 barrels of refined products through the Fischer-Tropsch process.
Fischer-Tropsch works by using heat and chemical catalysts to break down a substance like natural gas into its molecular basics and then rebuild those molecules into something else — such as diesel.
Why do that?
A barrel of oil contains roughly six times the energy content of a thousand cubic feet of gas. Since 6 thousand cubic feet of gas is worth about $24 (U.S.), and one barrel of oil is worth about $100, there is a tremendous profit margin if you can convert one to the other cost-effectively.
Best Energy Stocks Pick For 2013 #4—
PowerShares Wilderhill
Clean Energy Fund (PBW)
This is one of the largest alternative energy ETFs with over $500 million in assets. Large holdings include GT Solar, Yingli Green Energy, SunPower Corp., Trina Solar and more.

Top 10 High Dividend Growth Stocks for Long-Term Returns

Dividend growth stocks are one of the best-kept secrets in the investing world. After all, these are high-quality companies with strong competitive advantages that allow them to generate rising earnings over time. As a result, most of these companies generate so much in excess cash flow that they are able to pay a higher dividend over time without sacrificing long-term growth.
Companies that raise dividends at a high rate could easily generate double-digit yields on cost for investors who bought early and at the right time.
The following dividend champions have the highest consistent dividend growth rates:
Lowe’s (NYSE:LOW), together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. The company has boosted distributions for 49 years in a row. Ten-year annual dividend growth rate: 27.6%. Yield: 2.8%. (analysis)
McDonald’s (NYSE:MCD), together with its subsidiaries, operates as a worldwide foodservice retailer. The company has increased distributions for 35 consecutive years. Ten-year annual dividend growth rate: 26.5% Yield: 2.8%. (analysis)
Raven Industries (NASDAQ:RAVN) manufactures various products for industrial, agricultural, construction and military/aerospace markets in the United States and internationally. The company has boosted distributions for 25 years in a row. Ten-year annual dividend growth rate: 18.2%. Yield: 1.5%.
Wal-Mart (NYSE:WMT) operates retail stores in various formats worldwide. The company has increased distributions for 37 consecutive years. Ten-year annual dividend growth rate: 17.8% Yield: 2.8%. (analysis)

High Dividend Stocks For 2013

Go Global for Bigger Dividends, Growth

How is a prudent, conscientious person supposed to retire these days? The mutual fund industry tells you to invest in their low-dividend (or no-dividend) funds and hope the capital gains will be enough to carry you through. As we’ve seen in the past decade, though, the gains don’t always materialize when you need them. What then?
High-dividend stocks. Rather than buying an index fund yielding only 1.8%, you should choose carefully among high-dividend stocks. And while there are dividend stocks on our own shores that may fit the bill, investors who are willing to look beyond our borders can find generous yields with greater growth potential.
Here are seven top global dividend stocks to buy:

High Dividend Stocks For 2013#1 – Cellcom Israel (CEL)

Recommended by: Richard Band, Editor, Profitable Investing
Cellcom Israel (NYSE: CEL), Israel’s largest wireless carrier with 34% of the market, just declared its first quarterly dividend for 2011 — the equivalent of 85.7 cents (U.S.) per share. Annualized, that works out to a super-sweet yield of almost 11%!
CEL hands over virtually all its profits to shareholders as dividends, so there’s a chance the company may have to trim the payout in future quarters if business hits a speed bump. On the other hand, this “pay it all out” policy (similar to the approach taken by most U.S. master-limited partnerships) imposes rigorous capital allocation discipline on management. In short, Cellcom execs don’t waste money.
Buy dividend stock CEL on a pullback below $33.

High Dividend Stocks For 2013 #2 – Aberdeen Chile Fund (CH)

Recommended by: Bryan Perry, Editor, Cash Machine
One of my mega-themes for 2011 (and beyond) is the emergence of certain South American countries toward becoming developed nations. At the forefront of this movement, most would argue for Brazil, but within the past year, it has become evident that Chile might be the first to become a comparable neighbor to that of its northern counterparts, the United States and Canada.
Because many of the companies that thrive in the Chilean economy are not listed here in the United States, I find it suitable to embrace the Chilean investment theme with the purchase of the Aberdeen Chile Fund (AMEX: CH), a closed-end fund that has been a star performer in 2010. CH traded ex-dividend on March 29, and after hitting $23, it is now trading back down to support near $21 where a good entry point can be established while locking in a 9.61% dividend yield. Shares of CH should make their way back to $26. Buy CH up to $22.

High Dividend Stocks For 2013#3 – Telkom Indonesia (TLK)

Recommended by: Richard Band, Editor, Profitable Investing
The mantra here is “free cash flow.” In recent years, Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia, has poured huge sums into upgrading its networks. Now the company has the luxury of throttling back a bit.
Starting in 2011, each sales dollar (rupiah, actually) will generate more profit — along with a surge of cash that can be distributed to shareholders. I predict, in fact, that Indonesia’s largest telco will boost its dividend more than 30% by 2013 (from a 2010 base). That’s the kind of growth you want in retirement! Current yield, based on my estimate of 2011 dividends, is 4.8%. Buy TLK up to $36.

High Dividend Stocks For 2013 #4 – ING Asia Pacific High Dividend Equity Income Fund (IAE)

Recommended by: Bryan Perry, Editor, Cash Machine
We are witnessing the re-acceleration of the BRIC countries (Brazil, Russia, India and China) following a period of consolidated growth. The BRICs are enjoying renewed gross domestic product (GDP) expansion in the first quarter of 2011, especially China, and revving up for a strong year following a full six-month correction.
Pacific Rim countries will lead the way, making the ING Asia Pacific High Dividend Equity Income Fund (NYSE: IAE) an attractive buy after trading ex-dividend on April 1. With the stock sitting right on its 200-day moving average at $18.50, sporting a current dividend yield of 9.12%, it’s timely to pick up some shares. Buy IAE under $21.

High Dividend Stocks For 2013 #5 – CPFL Energia S.A. (CPL)

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Recommended by: Louis Navellier, Global Growth
It is a well-known fact that electricity consumption grows faster than the rate of growth of the economy. This is because as people build their wealth, they consume more. They buy bigger houses, they get more appliances and technology and such. Also, as industries enter a growth phase, they tend to use more power.
Because of the above characteristics, electric utilities in emerging markets are the first to see their businesses flourish. Brazil’s CPFL Energia S.A. (NYSE: CPL) distributes electricity to 6.4 million customers in about 570 communities, primarily in the states of Sao Paulo and Rio Grande do Sul. CPFL Energia also owns hydroelectric power plants and trades wholesale power in the open market and offers energy management services. Management estimates show that the company provides about 13% of Brazil’s electricity.
The company currently has a 6.9% dividend yield and should also benefit from a strong “currency tailwind” from the Brazilian real. The Brazilian real is a very strong currency as the central bank there maintains the highest real interest rates among major emerging economies. The shares offer a rare combination of both a high dividend yield and high growth rates, which makes them a great buy. Currently trading around $88, buy CPL on a pullback.

High Dividend Stocks For 2013 #6 – Telenor (TELNY)

Recommended by: Richard Band, Editor, Profitable Investing
Why would you want to own a telco in Norway? For one thing, as a hedge against the ruinous financial policies of the U.S. government. Thanks to prudent management of the country’s oil revenues, Norway has run a budget surplus every year since 1995. The Norwegian currency (krone), in which Telenor (OTC: TELNY) reports its profits (and pays its dividends), is sounder than both the euro and the U.S. dollar.
But there’s more to this story. TELNY has expanded far beyond its Norwegian base, with mobile and broadband operations in Sweden, Denmark, central and eastern Europe, plus five Asian countries. As a result, little-known Telenor is one of Europe’s fastest-growing telecom businesses. Sales will likely pass $19 billion in 2011. Current yield: 4.2%. Dividends have nearly quadrupled over the past seven years. This year’s dividend amounts to only about half of TELNY’s estimated 2011 profits, so an increase of 10% or so seems probable when the board declares next year’s payout. Buy TELNY on a pullback below $49.

High Dividend Stocks For 2013 #7 – SeaDrill (SDRL)

Recommended by: Bryan Perry, Editor, Cash Machine
SeaDrill Ltd. (NYSE: SDRL) is a unique opportunity for income investors seeking a pure play on deep-water drilling outside the post-BP spill in the Gulf of Mexico. The company was formed in 2005, and owns the most state-of-the-art drilling equipment in the entire industry that commands premium day rates. It is in big demand with utilization rates running near100% as big oil deposits become harder to find without going deep.
These guys operate all over the world in 15 countries on four continents, owning 54 rigs with exposure to only one rig in the Gulf of Mexico. Most of their drilling activity is off the coast of Norway and South Asia, so it has no exposure to the now unstable Middle East. However, news of ARAMCO in Saudi Arabia upping drilling production is hugely positive news for the oil and gas drilling sector. It confirms the belief that the worldwide drilling rig count will rise as well as day rates for the balance of 2011.
Shares of SeaDrill stand to trade significantly higher than its current price of $36.50, while paying a dividend yield of 7.5%. Buy SDRL under $40.

Best Investment For 2012 - 3 Shocking Energy Trends That Should Scare Investors

Energy is the lifeblood of the global economy. Factories need energy to run, and goods need fuel to get shipped.

So it is wise for investors to keep an eye on trends in the energy sector as a way to gauge the status of the economic recovery — or, when trends are ugly, a sign that investors might be in for a bumpy ride.

There are a host of indicators and headlines relating to oil and energy consumption, but here are three recent reports I found that I think are particularly telling.

All three should set off warning bells, and investors should take note:
Diesel Consumption

The UCLA Anderson School of Management teams up with employment services firm Ceridian Corporation to track real-time diesel fuel consumption data. The pair’s most recent report shows an alarming decline in use of the key fuel.

Specifically, the “Pulse of Commerce Index” — that’s the official name for the diesel data — fell 1.7% in January following a 0.4% decrease in December. January’s figures are not just down month-over-month, but also off 2.2% from last year.


Click to Enlarge Most disturbing? The diesel index shows almost zero growth since the summer of 2010. Check out the chart.

“It seems difficult to square the behavior of the PCI with the evident improvement in a number of economic indicators, most notably the increase in payroll jobs and the decrease in initial claims for unemployment,” said Ed Leamer, chief economist for the index.

In short, something doesn’t add up.

This index is not a magic measuring stick. But diesel obviously is a crucial part of the national economy and a good proxy for rail traffic and truck traffic … and thus worth paying attention to.
Gasoline Deliveries


Click to Enlarge As with diesel, broader gasoline deliveries reflect the ebb and flow of the economy. Check out this chart about monthly total U.S. deliveries as measured by the U.S. Energy Information Administration:

This data is most interesting because it is raw. It is not “seasonally adjusted” or modified based on flash estimates and revisions. It is, for all intents and purposes, real demand.

The biggest takeaway? Retail gasoline deliveries are well below 1980 levels, with no sign of rebound, despite the fact that the recession is “over.”

Now, we have to consider that these are deliveries, not raw demand. So the phenomenon takes into account the general trend that gas stations are stockpiling much less than they used to — likely because margins are so tight and there isn’t a lot of cash on hand to tie up in inventories. Stations are not in the storage business at all these days.

But it’s hard to blame everything on a drop in inventories alone. In November 1983, gasoline deliveries were 51.1 thousand gallons per day. In November 2010, the total was 42.8 thousand gallons daily. Even more disturbing? Just a year later, in November 2011, they were 30.9 thousand gallons.
No Leaders in Alternative Energy
Click here to find out more!

Energy isn’t all about fossil fuels, cars and broad demand. So-called “green collar” jobs are part of what should be an emerging industry as alternative energy gains popularity and as Americans move toward cleaner sources of power.

Except there’s no money in green energy. So companies are going under and jobs are being eliminated, not added.

Take First Solar (NASDAQ:FSLR), the biggest U.S. solar company, which ousted its chief executive officer in October and still is seeking a replacement. Few people want the job, since FSLR stock has gone from over $310 per share in 2008 to a mere $40 right now. Earnings per share have fallen from $7.68 in 2010 to $5.80 in 2011 to a projected $3.93 in 2012. Not good for the heavyweight of U.S. solar.

Wind isn’t much better. At Vestas Wind Systems (PINK:VWDRY), the largest turbine maker, the chairman and finance director are leaving after the company cut sales forecasts twice in three months.

If there is trouble filling jobs in the corner office, that’s not very inspiring for rank-and-file employees.

Throw in the bankruptcy of Solyndra LLC, which left the U.S. government responsible for $527 million in debt, and things are ugly in alternative energy.

Just consider this telling quote from an alternative energy headhunter, trying to find leaders for these struggling companies:

“It’s becoming significantly more difficult to attract people into this market,” said a clean technology recruiter at Korn/Ferry International. “In my 15 years, this is probably the most difficult time to recruit.”

Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. As of this writing, he did not own a position in any of the aforementioned stocks.

Best Energy Stocks Pick For 2012

President Obama made a speech where he announced a goal of cutting oil imports by a third over the next decade. He included a pledge to have federal agencies buy only alt-fuel vehicles by 2015 and a promise to expand U.S. oil exploration and production.
Transitioning half the cars and trucks in the U.S. to natural gas transportation over the next 5 to 10 years could reduce foreign oil imports by 5 million barrels every day.
So natural gas is an obvious play. Renewable/alternative fuels are other good choices.
Here are my four best picks that could make investors a bundle from  the President’s new policy:
Best Energy Stocks Pick For 2012#1—
Clean Energy Fuels (CLNE)
The company owns and/or supplies more than 200 natural gas fueling stations across the U.S. and Canada. It serves over 320 fleet customers operating over 20,000 natural gas vehicles. The customers can use Clean Energy’s fuel stations to tank up their vehicles with compressed natural gas (CNG) or liquefied natural gas (LNG).
Clean Energy Fuels also provides natural gas vehicle systems and conversions for taxis, limousines, vans, pick-up trucks, and shuttle buses through its BAF subsidiary in Texas. Clean Energy helps customers buy and finance natural gas vehicles and obtain government incentives.
The company buys CNG from local utilities and produces LNG at its two plants (in California and Texas) with a combined capacity of 260,000 gallons per day.
Clean Energy owns and operates an LNG liquefaction plant near Houston, Texas, which it calls the Pickens Plant, capable of producing up to 35 million gallons of LNG per year.
And investors who buy CLNE won’t be alone …
Founder and billionaire oilman T. Boone Pickens owns a sizeable chunk of Clean Energy.
Best Energy Stocks Pick For 2012 #2—
Westport Innovations (WPRT)
This company makes natural gas engines for forklifts, oilfield services engines, trucks and buses and automobiles. Its 50-50 joint venture Cummins Westport project builds natural gas vehicle engines for trucks and buses that could refill at the clean energy stations built by Clean Energy.
It made revenues of $154 million in the last year and isn’t close to profitability yet. But a concerted push toward natural-gas powered vehicles could change that.
WPRT is at the top of its 52-week range. So I’d wait for a pullback.
Best Energy Stocks Pick For 2012 #3—
Talisman Energy (TLM)
Talisman had 1.4 billion barrels of oil equivalent in reserves last year. It has material positions in three world-class, liquids-heavy shale plays in North America: The Marcellus shale (Pennsylvania), Montney shale (British Columbia) and Utica shale (Quebec). It is also expanding its Eagle Ford shale properties, in a 50-50 joint venture with Statoil.
The company also signed two $1.05 billion deals with Sasol of South Africa. This partnership is sketching out plans for a new multibillion-dollar facility near Edmonton that could process as much as a billion cubic feet of natural gas a day into 96,000 barrels of refined products through the Fischer-Tropsch process.
Fischer-Tropsch works by using heat and chemical catalysts to break down a substance like natural gas into its molecular basics and then rebuild those molecules into something else — such as diesel.
Why do that?
A barrel of oil contains roughly six times the energy content of a thousand cubic feet of gas. Since 6 thousand cubic feet of gas is worth about $24 (U.S.), and one barrel of oil is worth about $100, there is a tremendous profit margin if you can convert one to the other cost-effectively.
Best Energy Stocks Pick For 2012 #4—
PowerShares Wilderhill
Clean Energy Fund (PBW)
This is one of the largest alternative energy ETFs with over $500 million in assets. Large holdings include GT Solar, Yingli Green Energy, SunPower Corp., Trina Solar and more.

Why Tech Stocks Look Better—Even for the Risk Averse

The technology sector is known for two things: growth potential and risk.

Apple's trouncing of Wall Street earnings forecasts this past week suggests growth is still abundant. Yet Big Tech is looking less risky than it has in the past.

Here are four reasons conservative investors should consider adding exposure to tech stocks.

An Apple store in New York: Apple holds more than $97 billion in cash and securities.

Valuation. Tech stocks have had more than a decade to work off the bloated share prices from the dot-com stock bubble of the 1990s, says Cliff Hoover, chief investment officer of Dreman Value Management in Jersey City, N.J., which manages $5 billion. Many have become a good home for safety-oriented investors, he says.

The information-technology sector of the Standard & Poor's 500-stock index recently traded at 13 times estimated 2011 earnings, on par with the broad index, according to S&P data. The consumer staples and utilities sectors, typically considered safe and stodgy, fetch 14 times earnings. And Wall Street expects the tech sector to increase its earnings by almost 14% in 2012, versus 8% for consumer staples and 1% for utilities.

! Volatility. Over the past five years, large pockets of the tech sector, including hardware makers, systems software firms and consulting shops, have been no more volatile in terms of share-price changes than the broad S&P 500 index, according to S&P data.

Financial strength. The tech sector of the S&P 500 sits on $380 billion in cash and equivalents, more than any other sector and equal to 15% of its market value, according to Howard Silverblatt, senior index analyst at S&P. That doesn't include holdings in long-term securities. Apple holds a $67 billion portfolio that is "very liquid," Mr. Silverblatt says.

The two largest companies in the sector, Apple and Microsoft, have forward price/earnings ratios in single digits after deducting their cash and investments from their stock-market values. Microsoft and Intel now have fatter "dividend yields," or the percentage of share price paid out as dividends, than the 500 index average.

Mr. Hoover, who considers himself a "deep value" stock picker, likes Microsoft, Intel, Cisco Systems and Applied Materials. "They're big free-cash-flow generators and pretty good dividend payers," he says. Microsoft pays 2.7%, Cisco 1.2%, Intel 3.1% and Applied Materials 2.6%, versus 2% for the broad S&P 500.

Low expectations. With 37% of S&P 500 companies having announced December-quarter earnings results, 68% of the technology companies that have reported have beaten analysts' estimates, versus 59% for the index and 40% for consumer-staples companies, according to a Friday report from Thomson Reuters. (Only three utilities have reported, with one beating estimates.)

Tech outfits are doing well in part because companies that delayed technology purchases during the 2008 financial crisis are starting to spend, says David B. Armstrong, co-founder of Monument Wealth Management in Alexandria, Va., which oversees $200 million.

"Techno! logy has become more of a necessity, and companies can only delay investments for so long," he says. "That helps make the sector more stable."

When hunting for tech stocks, investors should consider not only traditional factors like valuation and income growth, but also the "network effect," says Kishore Rao, a research principal with Sustainable Growth Advisers in Stamford, Conn., which manages $3 billion in pension funds and other assets. The term refers to goods and services becoming more valuable as more people use them. For example, securities exchanges benefit from the network effect because as they attract more traders they become better able to handle additional trading volume.

Mr. Rao cites eBay's marketplace, Google's search advertising and Apple's community of mobile-application developers as examples of the network effect. "There's a high degree of predictability for these companies," he says. His firm, which tends to hold 25 to 30 stocks at a time, invests in all three companies.

Another factor to consider beyond financial results is "switching costs," says Grady Burkett, an analyst at Morningstar. The best companies are ones whose customers would find it a burden to switch to competitors, he says.

That typically means companies with plenty of large business customers, such as Cisco and Oracle, Mr. Burkett says. He calls Apple a rare example of a consumer-focused business with high switching costs because customers are attached to its music, photo and other applications. "They'll find it harder to give up their iPhones than they did their Motorola flip phones years ago," he says.

Of course, the technology sector remains exposed to sharp economic downturns, says David Roda, an investment strategist at Wells Fargo Private Bank. But breakthroughs in areas like mobile computing and Web-based, or "cloud," services are "just beginning," he says, and emerging markets have shown a voracious appetite for technology.

Mutual-fund investors who favor portfolios run by ! stock pi ckers should look for long-tenured management, solid returns and limited volatility, says Flynn Murphy, a mutual-fund analyst at Morningstar. He highlights two examples: Columbia Seligman Communications & Information, which has returned an average of 6.6% a year after expenses over the past 10 years, and Waddell & Reed Advisers Science & Technology, which has returned 7% a year, according to Morningstar data. The category average is 3.3% a year. Returns for both funds are for Class A shares, which carry upfront sales charges of up to 5.75% and yearly expenses of 1.36%.

For investors who chafe at high fees, exchange-traded funds like Vanguard Information Technology and Technology Select Sector SPDR offer broad exposure to technology at yearly expenses of 0.19% and 0.20%, respectively.

Another option is a more broadly focused mutual fund that happens to favor tech. The Oakmark Global fund, one of Morningstar's top picks, has 35% in tech, versus an average for world stock funds of 14%, Mr. Murphy says. It has returned 9.0% a year on average over the past decade, versus an average for world stock funds of 5.2%. There isn't an upfront sales charge, and yearly expenses are 1.16%.

3 Stocks That Are Better Than Facebook to buy in 2012

Chances are that you have to allocate your investing dollars wisely and where you think you’ll get the best payoff. So, should you put your money on Facebook? Or might it be another company?
I actually think investors can find some much better deals to choose from — without worrying about the fickleness of Internet fads, upstart competitors — which are getting tons of venture capital — as well as giant rivals like Google (NASDAQ:GOOG). Besides, in the Facebook S-1, Mark Zuckerberg does write: “we don’t build services to make money; we make money to build better services.” Yes, this may be scary for some investors.
So what might be some other stocks to consider? Here’s my shortlist of those with a market cap similar to Facebook’s estimated $100 billion:
3 Stocks That Are Better Than Facebook to buy in 2012 - ConocoPhillips (NYSE:COP) — $92 billion market cap.
Let’s face it, the world is having a tougher time finding oil reserves. Yet the demand continues to grow, especially in countries like China.
In the latest quarter, Conoco’s profits came to $3.39 billion while revenues increased by 17% to $62.39 billion. The company also plans to spin off its refining division, which will generate cash to pay down debt and allow for more focus on deepwater exploration.
Finally, Conoco has a juicy dividend, currently at 3.8%.  In other words, if you bought Conoco for $92 billion, your annual distribution would be $3.5 billion.  That should be enough for any kind of lifestyle.
Oh yeah, Berkshire Hathaway’s (NYSE:BRK.A) Warren Buffett, who is probably still worth more than Facebook’s Zuckerberg, holds 2.19% of the stock.
3 Stocks That Are Better Than Facebook to buy in 2012 - McDonald’s (NYSE:MCD) — $100 billion market cap.
As seen recently, the company has had some snafus with its social media marketing campaigns. But it’s something that Mickey D. will definitely learn from. When it comes to building a brand, few are better than McDonald’s.
And as InvestorPlace.com contributor Gene Marcial points out, the company is really the Apple (NASDAQ:AAPL) of fast food. And unlike Facebook, it also has a thriving business in China.
Despite the sluggishness in the global economy — especially in Europe — McDonald’s still finds ways to crank out growth. In November, global comparable sales growth came to 7.4%.
What about a dividend? The current yield is 2.8%.
3 Stocks That Are Better Than Facebook to buy in 2012 - QUALCOMM (NASDAQ:QCOM) — $103 billion market cap.
Yesterday, Qualcomm reported a blowout quarter. Revenues soared by 40% to $4.68 billion, with profits coming to $1.4 billion, or 81 cents per share. The company sees next quarter’s revenues at $4.6 billion to $5 billion, which compares to the analyst consensus of $4.51 billion.
Of course, Qualcomm is getting a lift from its Apple business, and it has lots of strength in India and China. So, in light of the expected momentum in the smartphone market, Qualcomm is likely to continue to post high-performance results. By contrast, Facebook makes virtually nothing from its mobile business.
Something else: Qualcomm even has a decent dividend yield of 1.5%.  Don’t expect a dividend from Facebook anytime soon.

Consider This Gasoline ETF As A Hedge (UGA)

The United States Gasoline Fund (NYSEARCA:UGA) is a way for investors and hedgers to manage their exposure to gasoline prices. This exchange traded fund is designed to reflect changes in percentage terms of the price of gasoline as measured by the change in the price of the gasoline futures contract traded on the New York Mercantile Exchange.
Let's take a look at the chart below. UGA formed a breakaway gap from a "Descending Triangle" pattern to start 2012. A descending triangle pattern shows demand at a fixed price level which is where I drew the blue horizontal trendline. It also shows increasing supply pressures with each rally off of support marked by the falling blue trendline.
Eventually either the demand or the supply is going to be depleted by the other. Normally this is a very bearish pattern, since once demand has been depleted; you can almost hear on the chart "look out below". The path of least resistance is lower below $45. Why? Traders who were buying and holding inside the triangle now have a losing position and potentially will be looking to cut losses. This increases supply. Bids become smart money doesn't like to catch a falling knife. Increasing supply with decreasing demand means down we go in price. Eventually the market hits a stopping price where the prior sellers are gone and long term investors now believe there is value and step in for a bargain. This is the reality of a two way auction.
The breakout that we see now on the other hand is not the most bullish indicator. What happened does signal a potential change in trend when the trendline is broken to the upside but you may still have some buy and hold investors at higher levels looking to get out. This can cause a false breakout. Volume was not that strong so this has potential to fill the gap.
I do not rely on technical indicators to make trading decisions, but it's worth pointing out that we had a MACD centerline crossover while UGA was inside the triangle as well as some prior positive bullish! diverge nce the last time UGA was bouncing on support. This was a signal to some technicians that momentum was building to the upside.
I would like to see Gasoline fill the gap and retest that backside of the falling trendline to see if any additional supply comes in. Any move back above this recent high afterward will be bullish and have me taking trades.
A longer term investor might find the horizontal support a great place to put a protective stop, but keep in mind this would be about a 10% move if you are proven wrong. Position sizing would be critical to keep losses to a minimum. Position sizing has everything to do with your account size and how much you are comfortable risking in capital (or how much you drive, since you may offset losses in your UGA hedge at the pump).
UGA often trades less than 100,000 shares so this is not a wise day trading vehicle.

The Reorganization Man - the government we have is not the government we need

The Washington rap on President Obama is that he's humorless, but that's unfair. He may not be Jay Leno funny, but his bit Friday on reforming and reducing government was great.
There he was in the East Room, explaining that "the government we have is not the government we need." That's for sure, and Mr. Obama even added the Gingrichian theme that "We live in a 21st-century economy, but we've still got a government organized for the 20th century. Our economy has fundamentally changed—as has the world—but our government, our agencies, has not."

President Obama delivers remarks on reforming the size of the federal government at the White House on Friday.

Alas, the President wasn't talking about modernizing Medicare or the entitlement state. He merely wants Congress to give him more power to reorganize the government. He says he wants his team to scrub down the executive branch looking for waste, duplication and bureaucratic complexity, and then to fast-track their proposals to Congress for an up-or-down vote within 90 days.
Mr. Obama's first targets for such "consolidation authority" are the six agencies related to business and the world economy, from the Commerce Department to the Export-Import Bank to the U.S. Trade Represen! tative. Maybe the White House chose to start there because, with an eye on the GOP campaign, Rick Perry wants to eliminate Commerce and a few other cabinet departments he can't remember.
Another way of putting it is that this new emphasis on streamlining the bureaucracy is Mr. Obama's version of the Texas Governor's "Oops." Having presided over the largest expansion of government since LBJ—health care, financial reregulation, spending 24% of GDP, the surge of industrial policy—Mr. Obama's pollsters must be saying that voters have the jimmy-legs about bigger government and that he thus can't run only as a Great Society man.

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But let's go to the videotape. One measure of government size is the federal work force, measured by the White House budget office as civilian full-time equivalent employees, excluding the military and Post Office. The executive branch had about 1.875 million workers in 2008 when the financial crisis hit, a number that held relatively constant throughout the post-9/11 Bush Administration. That number climbed to 2.128 million two years later under the 111th Congress—or growth of 13.5%. That's the largest government since 1992, when the Clinton Administration began to slash defense! spendin g.
This jobs boom is projected to decline slightly this year, to 2.116 million public employees, and the Administration says the Commerce unwind will take it down by another 1,000 or so. Yet even that would come through attrition, which usually means the competent people leave when they've had it with the lifers.
Proposals for government reorganization are the elevator music of politics, always present but never leaving much of an impression. Newt Gingrich says he's running in part to apply Lean Six Sigma best practices to the bureaucracy. Al Gore famously drew up a scheme for "reinventing government" in the late 1990s. He abandoned it after the airline unions revolted amid his attempt to reinvent the Federal Aviation Administration.

Joe Rago on President Obama's proposal to merge agencies within the Commerce Department.

Reshuffling agencies rarely works because what's important in government isn't where the bureaucrats sit but their mindset. The incentives are for inertia, turf protection and blame-shifting—unless change is imposed from the top. Mr. Obama has made it clear with his priorities over three years that his preference is for the government status quo, only more of it.
But Mr. Obama is now at least bowing to the principle of smaller government, and our advice to Congress is to weigh his proposals and extract some concessions to see if the President means what he says.
A major concern is the office of the U.S. trade rep, which Mr. Obama wants to subsume within the Commerce monolith. But the trade rep office is one of the best in government precisely because it is small, reports to the White House, and is focused on the single mission of trade expansion. As part of Commerce it may be drowned out by protectionist voices.
Another priority ought! to be r eforming the 47 separate job retraining programs, all but three of which overlap. The Government Accountability Office calls this wasteful with "no measurable benefit," but the White House has rebuffed any meaningful change.
This is a President who last year promised a review of all regulations while riding the greatest rule-making wave in American history. Now he's calling for leaner government without mentioning ObamaCare and Dodd-Frank, which create so many new boards and commissions that government auditors (literally) can't even count them. We suspect many in the White House were laughing themselves when they came up with this one.

A123 Systems Expands Partnership With IHI Corporation to Meet Increasing Demand for Lithium Ion Battery Technology in Japanese Transportation Market

IHI to License A123’s Nanophosphate(R) Battery System Technology to Develop Solutions for Passenger and Commercial Electric Vehicles in Japan; IHI Will Make $25 Million Equity Investment in A123
WALTHAM, Mass., Nov. 7, 2011 (CRWENewswire) — A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate(R)lithium ion batteries and systems, today announced that it has expanded its business development partnership with IHI Corporation, one of the largest industrial equipment manufacturers in Japan, to more strategically meet increasing demand for A123’s solutions in the Japanese transportation market. A123 will license its battery system technology to IHI, which will develop solutions for passenger and commercial electric vehicles in Japan using A123 battery cells. In addition, IHI will make a $25 million equity investment in A123.
“Since first partnering with A123 in 2009, we have seen increasing interest in A123’s advanced lithium ion battery technology for transportation and other applications. We believe that expanding our partnership enables IHI to address this growing market opportunity by commercializing innovative solutions powered by A123’s batteries,” said Taizo Suga, Associate Director, General Manager, Corporate Development Division at IHI. “A123’s Nanophosphate lithium ion chemistry has proven to be among the highest-performing, most durable and longest lasting battery technologies we’ve seen, which we feel makes them optimal for vehicle electrification. We look forward to working closely with A123 as a technology partner, and we also believe our equity investment in A123 will demonstrate a meaningful commitment to our expanded strategic business relationship.”
Under the terms of a technology license agreement, IHI will be the exclusive provider of A123 battery systems and modules in the Japanese transportation market, licensing A123’s advanced battery system technol! ogy and systems integration expertise to manufacture solutions for electric vehicles. It is expected that this will enable A123 to leverage the customer relationships IHI has developed with leading Japanese automakers. A related product supply agreement also establishes A123 as the exclusive supplier of lithium ion battery cells to IHI for transportation as well as non-transportation applications that IHI may develop as a future value-added reseller, which has the potential of creating new market opportunities for A123 technology across IHI’s global businesses.
“IHI is a well-established technology supplier to the Japanese auto industry , so we believe that expanding our relationship provides us with a strong strategic partner to help us more effectively and efficiently deliver our solutions to the Japanese transportation market,” said Jason Forcier, vice president of the Automotive Solutions Group at A123. “Additionally, we believe that we have a competitive advantage as the exclusive provider of lithium ion battery cells to IHI for the licensed applications as well as potential additional applications beyond transportation, allowing us to capitalize on new market opportunities introduced by IHI’s robust global network of businesses.”
About A123 Systems
A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company’s proprietary Nanophosphate(R) technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please vis! it www.a 123systems.com.
Safe Harbor Disclosure
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including statements with respect to the anticipated benefits of the expanded strategic business relationship, the market for alternative energy transportation in Japan and the timing of expected production and availability of IHI’s solutions based on A123’s system technology and their anticipated performance, benefits and features, as well as the expected demand by IHI for battery cells to be supplied by A123, and the expected performance of A123’s battery technology and lithium ion battery cells . Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: delays in customer and market demand for and adoption ofIHI’s battery system products, delays in the development, production and supply of IHI’s products, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 and IHI operate and other risks detailed in A123 Systems’ 10-Q for the quarter ended June 30, 2011 and other publicly available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123’s expectations only as of the date of this release and should not be relied upon as reflecting A123’s views, expectations or beliefs at any date subsequent to the date of this release.

McCann and His Team: Lots of Merrill Lynch

Bob McCann, the former head of Merrill Lynch's brokerage force, joined UBS in November 2009, when it had about 7,300 advisors in the Americas. And the recently hired head of wealth management for the Americas is now putting together a team to help him boost results.
In a January 19 memo, in which he describes his effort in forming a "Renewal Team," McCann says that leaders are being hired to make changes "in how we interface with our clients and financial advisors, with particular focus on streamlining processes, increasing efficiencies and driving the business forward."
The new hires and leadership shifts include:
- Bob Mulholland, formerly of Merrill Lynch, will now head UBS Americas' Wealth Management Advisor Group (replacing Jamie Prince);
- Brian Hull, another ex-Merrill Lynch executive, will head Wealth Management Partnerships;
- John Brown, head of Wealth Management Solutions;
- David Satler, chief of staff - as well as head of Human Resources; and
- Paula Polito, another Merrill Lynch veteran, is now chief marketing officer.
Other executive changes effect:
- Jamie Price, who moves to an advisory role for the firm, "working with Bob Mulholland and his team, while he considers new career opportunities;"
- Jim Hausmann, who has been serving as interim head of Products and Services for the past six months, will assume a leadership role in the new Wealth Management Solutions organization, reporting to John Brown; and
- Kim Jenson takes on a new senior role and will be responsible for Wealth Management Advisor communications, reporting to Paula Polito.