Top 5 Blue-Chip Stocks To Buy for February in 2012

These top five stocks for February have the immediate growth potential and are seeing exceptional buying pressure. I want to make certain you’re not missing out on these wonderful opportunities.
Two of the top five stocks for February are returning veterans from January and other months, but I’ve added some new stocks as well. Let’s get started:

Alexion Pharmaceuticals

Top 5 Blue-Chip Stocks To Buy for February in 2012 - Alexion (NASDAQ:ALXN) remains the No. 1 stock on my buy list. This stock has been surging higher in recent weeks, and shares responded very positively to the news that the company is expanding its product portfolio through its $1 billion bid for Enobia Pharma, a developer of therapies for serious genetic bone disorders. The company currently is working to get its hypophosphatasia treatment, asfotase alfa, approved in the United States. To date, there is no approved treatment for this life-threatening disease. So, if approved, the company would have a tremendous first-mover advantage. Alexion, who will acquire full worldwide development and commercial rights to asfotase alfa, is confident the drug can obtain approval. Analysts currently expect Alexion to grow sales by 41.4% and earnings by 30.8% in the fourth quarter. ALXN reports Thursday, Feb. 9.
AutoZone
Top 5 Blue-Chip Stocks To Buy for February in 2012 - AutoZone (NYSE:AZO) has taken off on its next leg higher because it is the perfect stock for the current automobile market. Although consumers are buying new cars when necessary, they also are extending the lives of those vehicles and getting as much mileage as they can for their buck. And companies like AutoZone do this superbly by supplying the parts to keep well-worn cars in top condition. Looking forward to the company’s next quarterly earnings report, expected in late February, analysts currently estimate AutoZone will announce 7% growth in sales and 19.8% growth in earnings. The stock should be a solid performer in the coming weeks. AZO is a strong buy.

Dollar Tree

Top 5 Blue-Chip Stocks To Buy for February in 2012 - Dollar Tree (NASDAQ:DLTR) knows one of the best ways of coping with thinning wallets is to stretch each and every dollar. So, while lean times hit other retailers particularly hard, Dollar Tree stores flourished. The company is the largest and most successful single-price-point retailer in the U.S. — everything in its 4,000 locations is just $1. The company has continued its success even as the U.S. economy improves, and I don’t believe the desire of consumers to save money will be disappearing anytime in 2012. In fact, analysts currently expect the company to report 11.5% sales growth and 22.5% earnings growth in its Feb. 22 earnings announcement.

McDonald’s

Top 5 Blue-Chip Stocks To Buy for February in 2012 - McDonald’s (NYSE:MCD) is the world’s No. 1 fast-food company and a solid winner for this buy list. Analysts expected the company to report 9.1% sales growth and 11.2% earnings growth this week. McDonald’s answered back by beating earnings expectations for 14th time in the past 16 quarters. Although this did not push the stock higher, I still believe the positive earnings report will be a catalyst for further gains. McDonald’s plans to invest in store expansions around the globe in 2012, with two-thirds of its new stores to be located in Asia.
Ross Stores
Top 5 Blue-Chip Stocks To Buy for February in 2012 - Ross Stores (NASDAQ:ROST) is the nation’s largest off-price apparel and home fashion retailer and continues to benefit from value-focused customers. The stock has been a solid performer so far in the new year. In December, ROST reported that its same-store sales jumped 9.2%, over double the 4% estimate! I’m looking forward to the company’s Q4 earnings announcement and finding out how these exceptional sales affected the company’s earnings. Analysts are currently expect the company to report 10.9% sales growth and 20.3% earnings growth, and a solid surprise could be just the ticket to the stock’s next leg higher.

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.

2012 Best Dividend Stocks To Buy

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 top global dividend stocks to buy:

2012 Best Dividend Stocks To Buy: Mosaic Company (The) (MOS)

The Mosaic Company engages in the production and marketing of concentrated phosphate- and potash-based crop nutrients for the agriculture industry worldwide. The company also offers phosphate-based animal feed ingredients; and produces and sells potash for use as fertilizers and animal feed ingredients, as well as for use in industrial applications. Its potash products are also used for de-icing and as a water softener regenerant. The company?s distribution facilities include sales offices, port terminals, crop nutrient blending and bagging facilities, and warehouses. It sells its products primarily to wholesale distributors, retail chains, cooperatives, independent retailers, and national accounts. The company was founded in 2004 and is headquartered in Plymouth, Minnesota. As of May 25, 2011, The Mosaic Company operates independently of Cargill, Incorporated.Advisors’ Opinion:

• Seeking Alpha2011-9-7Mosaic (MOS) potash production capacity has grown 10% since 2006 and is expected to increase another 60% between now and 2020. And as it rises, the company’s stock seems likely to follow. Currently yielding: 0.3%
  

  2012 Best Dividend Stocks To Buy: Eaton Corporation (ETN)

  Eaton Corporation operates as a power management company worldwide. It provides electrical components and systems for power quality, distribution, and control; hydraulics components, systems, and services for industrial and mobile equipment; aerospace fuel, hydraulics, and pneumatic systems for commercial and military use; and truck and automotive drivetrain, and powertrain systems for performance, fuel economy, and safety. The company also manufactures screw-in cartridge valves, custom-engineered hydraulic valves, and manifold systems; and electrical and electromechanical systems. In addition, it designs, manufactures, and distributes intake and exhaust valves for diesel and gasoline engines; supplies electrical components for commercial and residential building applications and industrial controls for industrial equipment applications; and manufactures human machine interfaces, programmable logic controllers, and input/output devices. Further, the company also operates as a provider of customized enclosures, rack systems, and air-flow management systems to store, power, and secure mission-critical IT data center electronics; and manufacturer, distributor, and service provider of single-phase and three-phase uninterruptible power supply systems. Eaton Corporation was founded in 1916 and is headquartered in Cleveland, Ohio.Advisors’ Opinion:
• Curtis Hesler2011-9-28Eaton Corporation (NYSE:ETN): Down 0.23% to $34.73. Eaton Corporation manufactures engineered products which serve industrial, vehicle, construction, commercial, and aerospace markets. The Company’s principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, and a wide variety of controls.

Top 100 Dividend Stocks to Invest in 2012

In the light of the big news about the death of Osama Bin Laden, it should be an interesting on the world markets.  That being said, no matter what happens, I think it’s fair to say that you should not let your future financial independence depend on world events such as this one. That is one reason why this monthly post is always so popular as it represents a good first step to build and improve your passive income portfolio in what could be the difference between an early & enjoyable retirement and a very late retirement where you depend on your former employer or the government to determine the level of your life. So today we resume our monthly tradition of looking at the top 100 dividend stocks in the broad based S&P500 index.
What to look for
Over the past few months, we have looked at quite a few criteria that have helped us find the best dividend stocks including current yield, dividend growth and also companies that produce solid enough earnings to keep up the dividend payments. We summed it all up when we discussed the 20 things that we look for in dividend stocks.
FTR remains once more at the top of our list although it continues to pay out much more than what it makes making its 9% dividend yield unsustainable for now.  We did review FTR in the mailing list a few months and did determine it was not a great dividend stock. Both the #2 and #3 positions are also telephone/telecom stocks. Once again, later this week, we will be focused on growth stocks as those seem to be the key to a long term dividend portfolio.
Hopefully this will help you when building your passive dividend porrtfolio.

We will be filtering out the top 100 list to find the ones that fit all of these criteria! In the meantime, here is the list!

Ticker	Name	Price	Dividend Yield	Payout Ratio	Ex-Date

FTR Frontier Communications Corp 8.27 9.07 346.75 6/7/2012 WIN Windstream Corp 12.81 7.81 150.63 6/28/2012 CTL CenturyLink Inc 40.78 7.11 92.65 6/6/2012 PBI Pitney Bowes Inc 24.56 6.03 97.09 5/11/2012 RAI Reynolds American Inc 37.11 5.71 81.34 6/8/2012 MO Altria Group Inc 26.84 5.66 77.98 6/13/2012 POM Pepco Holdings Inc 19.27 5.6 173.38 6/8/2012 T AT&T Inc 31.12 5.53 52.32 7/8/2012 RRD RR Donnelley & Sons Co 18.86 5.51 96.71 8/2/2012 FE FirstEnergy Corp 39.96 5.5 85.46 5/4/2012 HCN Health Care REIT Inc 53.77 5.32 554.64 5/6/2012 LLY Eli Lilly & Co 37.01 5.29 42.75 5/11/2012 DUK Duke Energy Corp 18.65 5.25 97.07 5/18/2012 AEE Ameren Corp 29.31 5.25 264.75 6/6/2012 PGN Progress Energy Inc 47.45 5.23 83.83 7/8/2012 TEG Integrys Energy Group Inc 52.36 5.2 94.56 5/25/2012 VZ Verizon Communications Inc 37.78 5.16 213.72 7/6/2012 PPL PPL Corp 27.43 5.1 63.35 6/8/2012 CINF Cincinnati Financial Corp 31.68 5.05 68.7 6/20/2012 AEP American Electric Power Co Inc 36.48 5.04 68.04 5/6/2012 EXC Exelon Corp 42.15 4.98 54.31 5/11/2012 LO Lorillard Inc 106.5 4.88 62.68 5/26/2012 HCP HCP Inc 39.62 4.85 198.62 5/5/2012 PNW Pinnacle West Capital Corp 43.39 4.84 67.88 7/29/2012 SO Southern Co 39.04 4.84 75.75 8/4/2012 ETR Entergy Corp 69.72 4.76 48.31 5/10/2012 NI NiSource Inc 19.45 4.73 86.8 7/27/2012 BMY Bristol-Myers Squibb Co 28.1 4.7 71.24 6/29/2012 SCG SCANA Corp 41.52 4.67 63.56 6/8/2012 ED Consolidated Edison Inc 52.12 4.61 68.15 5/16/2012 PBCT People’s United Financial Inc 13.69 4.6 254.49 7/29/2012 DTE DTE Energy Co 50.53 4.43 58.25 6/16/2012 TE TECO Energy Inc 19.27 4.26 73.1 5/11/2012 PEG Public Service Enterprise Group Inc 32.17 4.26 44.51 6/7/2012 CNP CenterPoint Energy Inc 18.6 4.25 72.35 5/12/2012 D Dominion Resources Inc/VA 46.42 4.24 36.37 5/25/2012 CMS CMS Energy Corp 19.8 4.24 43.38 5/4/2012 KMB Kimberly-Clark Corp 66.06 4.24 58.87 6/8/2012 MRK Merck & Co Inc 35.95 4.23 549.36 6/15/2012 XEL Xcel Energy Inc 24.33 4.15 61.8 6/21/2012 VTR Ventas Inc 55.93 4.11 153.91 6/8/2012 LEG Leggett & Platt Inc 26.29 4.1 87.94 6/13/2012 PCG PG&E Corp 46.08 3.95 60.24 6/28/2012 PCL Plum Creek Timber Co Inc 43.09 3.9 134.65 5/11/2012 NEE NextEra Energy Inc 56.57 3.89 41.93 6/1/2012 PFE Pfizer Inc 20.96 3.82 72.18 5/11/2012 PAYX Paychex Inc 32.71 3.79 93.94 7/28/2012 LMT Lockheed Martin Corp 79.25 3.79 36.64 5/27/2012 CAG ConAgra Foods Inc 24.45 3.76 46.82 7/27/2012 FII Federated Investors Inc 25.78 3.73 127.68 5/4/2012 PM Philip Morris International Inc 69.44 3.69 61.77 6/21/2012 KIM Kimco Realty Corp 19.54 3.69 361.29 6/29/2012 ABT Abbott Laboratories 52.04 3.69 59.05 7/15/2012 SYY Sysco Corp 28.91 3.6 49.64 6/29/2012 SE Spectra Energy Corp 29.04 3.58 62.32 5/11/2012 RTN Raytheon Co 48.55 3.54 30.6 7/6/2012 HNZ HJ Heinz Co 51.23 3.51 58.04 6/21/2012 SRE Sempra Energy 55.1 3.49 51.56 6/14/2012 HRB H&R Block Inc 17.29 3.47 41.09 6/7/2012 JNJ Johnson & Johnson 65.72 3.47 43.54 5/26/2012 WM Waste Management Inc 39.46 3.45 63.38 5/26/2012 KFT Kraft Foods Inc 33.58 3.45 81.98 6/27/2012 CPB Campbell Soup Co 33.59 3.45 44.08 6/30/2012 MAT Mattel Inc 26.72 3.44 42.53 5/23/2012 IP International Paper Co 30.88 3.4 27.48 5/13/2012 MCHP Microchip Technology Inc 41.04 3.36 115 5/17/2012 GAS Nicor Inc 55.43 3.36 61.42 6/28/2012 HCBK Hudson City Bancorp Inc 9.53 3.36 55.05 5/3/2012 COP ConocoPhillips 78.93 3.35 27.95 5/19/2012 GPC Genuine Parts Co 53.7 3.35 54.45 6/8/2012 WEC Wisconsin Energy Corp 31.21 3.33 41.15 5/11/2012 EIX Edison International 39.27 3.26 32.91 6/28/2012 PG Procter & Gamble Co/The 64.9 3.24 48.84 7/20/2012 MTB M&T Bank Corp 88.37 3.17 48.21 5/26/2012 CLX Clorox Co 69.66 3.16 48.09 7/26/2012 NOC Northrop Grumman Corp 63.61 3.14 26.74 5/26/2012 AVP Avon Products Inc 29.38 3.13 63.71 5/18/2012 INTC Intel Corp 23.19 3.13 30.56 5/4/2012 MCD McDonald’s Corp 78.31 3.12 48.68 5/26/2012 SVU SUPERVALU Inc 11.26 3.11 N/A 5/27/2012 NUE Nucor Corp 46.96 3.09 339.9 6/28/2012 NU Northeast Utilities 35.6 3.09 46.84 5/27/2012 BMS Bemis Co Inc 31.34 3.06 50.66 5/18/2012 K Kellogg Co 57.27 3 46.83 5/27/2012 NYX NYSE Euronext 40.05 3 43.85 6/14/2012 OKE Oneok Inc 69.94 2.98 57.84 7/27/2012 MWV MeadWestvaco Corp 33.69 2.97 61.83 7/28/2012 GE General Electric Co 20.45 2.93 42.29 6/16/2012 GIS General Mills Inc 38.58 2.9 42.06 7/7/2012 DD EI du Pont de Nemours & Co 56.79 2.89 49.75 5/11/2012 VNO Vornado Realty Trust 96.68 2.86 77.37 5/5/2012 CVX Chevron Corp 109.44 2.85 29.81 5/17/2012 AVB AvalonBay Communities Inc 126.61 2.82 304.59 6/28/2012 BLK BlackRock Inc 195.94 2.81 37.62 6/3/2012 SPG Simon Property Group Inc 114.54 2.8 123.98 5/13/2012 PEP PepsiCo Inc/NC 68.89 2.79 47.92 6/1/2012 KO Coca-Cola Co/The 67.46 2.79 34.4 6/13/2012 MMC Marsh & McLennan Cos Inc 30.28 2.78 79.67 7/6/2012 UPS United Parcel Service Inc 74.97 2.77 54.73 5/19/2012 PLD ProLogis 16.29 2.76 N/A 5/11/2012

Best Stocks For 2012 - Place Your Bid on eBay Stock Now

Best Stocks For 2012 - eBay (NASDAQ:EBAY) — This online auctioneer is in reality a global commercial platform that is the largest of its kind. It owns Pay-Pal, Bill Me Later, Gmarket, GSI Commerce, Shopping .com and StubHub.
Its fourth-quarter 2011 earnings were considerably above analysts’ estimates. Currently,11 Wall Streetanalysts have a “strong buy” on Best Stocks For 2012 - EBAY, nine are a “buy,” and 13 are a “hold. There is only one who rates the stock “underperform.”
Yesterday, EBAY confirmed a major breakout through a compound top that has taken a full year to form. Heavy accumulation in the past month helped it flash a “golden cross,” a long-term buy signal. The breakout has a trading target of $41.

Best Stocks For 2012 - Don’t Put Any Stock in Denim

Jeans. Long ago, this word evoked the most pedestrian of images — blue, rugged, simple, cheap. But over the past few decades (and a few million acid washes and knee holes later), jeans became the stuff of high fashion, selling for exorbitant prices.
So it’s logical to think that the premier makers of high-end denim should be minting money, right? Well, not exactly. While jeans have demonstrated staying power as a fashion statement, some of the biggest names in denim are far from a long-term lock as an investment.

Best Stocks For 2012 - Guess

Of this group, Guess is the oldest and the largest. Guess was one of the premier jean brands of the 1980s, then fell by the wayside in the ’90s to Best Stocks For 2012 - Gap (NYSE:GPS), Calvin Klein and others. But since the aughts, Guess has been heading in the right direction in several areas.
Guess increased sex appeal in its ads to improve popularity. It diversified both its offerings, adding accessories and perfume, and its finances — Guess’ revenues outside the U.S. and Canada have gone from 20% of total revenues in 2005 to almost half last year. Earnings have increased an average of 28% annually in the past five years, debt is next to negligible and GES has been increasing its dividend since 2007, currently yielding 20 cents, or 2.5%.
However, Guess stock has fallen almost 30% since a November 2010 peak above $50. Its most recent quarterly earnings of 71 cents per share were down 5%, and analysts expect similar drops in earnings across the next couple quarters and FY 2012. The Street does expect GES earnings to grow 10% in FY13, but that still would far lag an industry-wide expectation of about 23%. Though it has a fair forward P/E of about 12, the growth concerns raise a red flag.

Best Stocks For 2012 - True Religion

True Religion, while still a bit diversified in its offerings, is a purer play on jeans. It’s also a worse one. True Religion is a much smaller operation than Guess, though similar in that it also sells its clothes through other retailers. Its jeans run in a range between $220 and $320, so it’s safe to call TRLG a luxury stock. And a look at its share price shows True Religion definitely is behaving like other luxury stocks — TRLG is up 70% in the past year.
What’s troubling is that True Religion’s stock movement doesn’t reflect the company’s performance. TRLG’s earnings growth on a quarterly basis has been extremely inconsistent during the past two years. Also, while its full-year 2011 adjusted earnings reported Thursday were up 1 cent per share from 2010, at $1.88, they’re still 4 cents shy of 2009 earnings. Q4 2011 adjusted earnings also were down 2 cents down from 2010 levels, and well short of Wall Street expectations — and True Religion stock was hammered for it Friday, losing 27% in a single day!
But even if you think of buying on the dip at around $28, TRLG still isn’t a that much of a bargain, trading around 12 times expected 2012 earnings. And with no dividend, there’s nothing convincing me to stick around and wait for better times.

Best Stocks For 2012 - Joe’s Jeans

I saved the worst for last. Joe’s Jeans is a tiny company that sells jeans in the $100-$200 range, as well as other clothes and accessories. And there’s not much good to say about it. Its fourth-quarter earnings were … whoops! We don’t know. JOEZ was tentatively slated to report on Thursday, but as of this writing, it didn’t show. What we do know is the company lost 3 cents per share in its previous quarter, and analysts expect Joe’s Jeans to break even for the year, then earn 3 cents per share in FY12.
But don’t bother. Joe’s Jeans is dangling off the Nasdaq cliff — JOEZ has traded below $1 since April, so the company was given a six-month delisting warning from the Nasdaq in June, then got a six-month extension in December. And at about 70 cents per share, the company is as close as it has been to a buck since August.
In other words? This stock is sunk. If you’re dead-set on playing Joe’s Jeans, be aware that it has very thin daily volume and has a microcap market size ($45 million). So even though it doesn’t trade on the pink sheets yet, it is for all intents and purposes a high-risk penny stock gamble — not an investment.

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.

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.