Top 10 Canadian Stocks To Buy For 2014

The United States is overflowing with oil. In fact, the Energy Information Administration thinks the country could realistically produce 6 million to 8 million barrels of oil per day over the next three decades. The institution's high estimate exceeds 10 million barrels per day. Canadian production isn't doing too bad, either, although supporting infrastructure is less developed for our northerly neighbors. That bodes well for the companies pumping it out of the ground, but it also represents a big opportunity for the companies transporting and refining crude oil.

Here are four of the best investments supporting oil drillers.

Canadian National Railway (NYSE: CNI  )
Canadian National Railway is one company trying to bail-out Canada's ailing pipelines. In 2010 the company didn't move one carload of crude oil. This year it is expected to "choo-choo" its way to 60,000 carloads of oil from the country. This business in particular has boosted sales and income each year since 2010. Investors have to like that growth and where things are headed in the long term. Canadian National is cutting checks totaling $1.9 billion this year to repair its railways, accommodate growth needs, and purchase new freight cars, including new natural-gas powered models. �

Top 10 Canadian Stocks To Buy For 2014: Tsakos Energy Navigation Ltd(TNP)

Tsakos Energy Navigation Limited, together with its subsidiaries, provides seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services for national and independent oil companies and refiners under long, medium, and short-term charters. As of August 16, 2011, its fleet consisted of 50 vessels comprising 59 tankers, including 2 dynamic positioning 2 (DP2) shuttle tankers under construction, and 1 liquefied natural gas carrier. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001. Tsakos Energy Navigation Limited was founded in 1993 and is based in Athens, Greece.

Advisors' Opinion:

• [By Lowell]

  Tsakos Energy Navigation Limited is a provider of international seaborne crude oil and petroleum product transportation services. Its EPS forecast for the current year is 0.54 and next year is 0.99. According to consensus estimates, its topline is expected to grow 4.48% current year and 12.48% next year. It is trading at a forward P/E of 10.95. Out of eight analysts covering the company, two are positive and have buy recommendations, one has a sell recommendation and five have hold ratings.

Top 10 Canadian Stocks To Buy For 2014: Nexen Inc.(NXY)

Nexen Inc. operates as an independent energy company worldwide. The company?s Conventional Oil and Gas segment explores for, develops, and produces crude oil and natural gas from conventional sources. This segment operates in the United Kingdom, Canada and the United States, and offshore West Africa, Colombia, and Yemen. Nexen?s Oil Sands segment develops and produces synthetic crude oil from the Athabasca oil sands in northern Alberta. The company?s Shale Gas segment explores for and produces unconventional gas from shale formations in northeastern British Columbia. Nexen Inc. was founded in 1971 and is headquartered in Calgary, Canada.

5 Best Gold Stocks To Watch Right Now: Natural Gas(NG)

NovaGold Resources Inc., through its subsidiaries, engages in the exploration and development of mineral properties primarily in North America. The company primarily explores for gold, silver, copper, zinc, and lead ores. It holds interests in the Donlin Creek property covering 81,361 acres and the Ambler property comprising 90,614 acres located in Alaska; and the Galore Creek property comprising 293,838 acres located in northwestern British Columbia, Canada. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was founded in 1984 and is based in Vancouver, Canada.

Advisors' Opinion:

• [By Vodicka]

  Novagold Resources Inc New Ord (AMEX:NG): This equity had 11,424,918 shares sold short as of Aug 31st, as compared to 11,493,664 on Aug 15th, which represents a change of -68,746 shares, or -0.6%. Days to cover for this company is 4 and average daily trading volume is 2,735,045. About the equity: NovaGold Resources Inc. is a mineral exploration company. The Company, through its subsidiaries, explores and develops mineral properties in North America. NovaGold primarily focuses on gold properties, which may include copper, silver and zinc resources.

• [By Holly LaFon] John Paulson bough 20, 181,818 shares of NovaGold in the first quarter of 2010 at an average of $6 per share; he added 26,200 shares in the third quarter at an average of $9 per share, and 2,746,800 in the fourth quarter at an average of $9 per share. According to GuruFocus Real Time Picks, in February he increased this holding 30.49% and now owns 29,954,818 shares or 10.8% of the company.
  
  NovaGold Resources is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. NovaGold has a market cap of $2.26 billion; its shares were traded at around $7.68 with and P/S ratio of 5622. NovaGold had an annual average earnings growth of 31.1% over the past 10 years.
  
  It is not a surprise that Paulson would increase his gold holdings. He said in his 2011 investor letter that ��y gold fund will top all others.��He added:
  We anticipate that the divergence between gold and gold equities will narrow, given the booming earnings that a number of the major gold producers are delivering...We remain excited about the outlook for the Paulson Gold Funds over the next few years. Central banks have engaged in unprecedented amounts of quantitative easing, while investors are increasingly losing faith in paper currencies. The sovereign debt crisis in Europe continues to threaten the stability of the global financial system. In this environment, gold stands out as the most stable and credible currency alternative and we would argue that the potential upside in gold outweighs the potential downside. Gold equities are attractively priced given the strong financial performance than many of these companies are delivering... The Paulson Gold Funds, which are designed to outperform gold in a rising gold price environment, provides investors with a hedge against inflation and more.NovaGold does not have the robust earnings Paulson speaks of. But for the year ended Nov. 30, 2011, the company�� loss narrowed to $153 million, from $203.5 million, for 2010. ! Revenues declined to $111 million for 2011 from $172 for 2010. The company had $66.8 mil

Top 10 Canadian Stocks To Buy For 2014: Royal Bank Of Canada(RY)

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Its Canadian Banking segment offers personal financial services, business financial services, and cards and payment solutions. The company?s Wealth Management segment provides wealth and asset management, and estate and trust services to affluent and high net worth clients through distributors, as well as directly to institutional and individual clients in Canada, the United States, Europe, Asia, and Latin America. Its Insurance segment provides various life and health insurance, including universal life, accidental death and critical illness protection, disability, long-term care insurance, and group benefits; and property and casualty insurance comprising home, auto, and travel insurance, as well as wealth accumulation solutions; and reinsurance products through retail ins urance branches, call centers, independent insurance advisors and travel agencies, financial institutions, and career sales force. The company?s International Banking segment offers various financial products and services to individuals, business clients, and public institutions in the U.S. and Caribbean. This segment also provides global custody, fund and pension administration, securities lending, shareholder services, analytics, and other related services to institutional investors. Royal Bank of Canada?s Capital Markets segment engages in the trading and distribution of fixed income, foreign exchange, equities, commodities, and derivative products for institutional, public sector, and corporate clients; and involves in investment banking, debt and equity origination, advisory services, corporate lending, private equity, and client securitization businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

Top 10 Canadian Stocks To Buy For 2014: ConocoPhillips(COP)

ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.

Advisors' Opinion:

• [By Fabian]

  ConocoPhilips(COP) is a close second. This is a Warren Buffett darling that will benefit from its spinoff of refining assets some time in 2012.

  Conoco also continues to pay a consistent and reliable 3.75%. Note that COP has underperformed the rest of the sector recently. Correlations are normally so close that such an underperformance by one stock can point the way to value.

Top 10 Canadian Stocks To Buy For 2014: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Sam Collins]

  Houston-based Waste Management Inc. (NYSE: WM) is the largest trash hauling/disposal company in the United States. This company is a model for steady growth with earnings increasing steadily over many years.?

  S&P has a “four-star buy” on WM with a 12-month target of $42. WM pays an annual dividend of $1.36 for a yield of 3.7%.?

  Technically, the stock is in a powerful bull channel with support at $36 and resistance at $39. Buy WM as a long-term growth opportunity.

• [By Tom Konrad]

  The only household name in this year's list, Waste Management is coming back for an encore performance in 2013.  WM is the North American leader in recycling and renewable biogas among waste and environmental services companies.  The industry has been in a cyclical downturn, and WM's well-covered 4.2% dividend makes it a solid anchor for this portfolio of small and micro-cap clean energy stocks.

• [By Jonas Elmerraji]

  Investors think Waste Management (WM) is a garbage stock right now. Why else would WM's short interest ratio hover around 12.6? Of course, Waste Management is in fact a garbage stock of sorts -- it is the largest waste management service provider in the country. The firm boasts more than 270 landfills and a massive fleet of trash collection vehicles that spans the U.S.

  When I think garbage firms, the first thing that comes to mind is dividends: WM and its peers historically have generous, recession-resistant dividend payouts. Currently, Waste Management's yield adds up to 3.36% annually. Don't forget, dividends are like kryptonite to short sellers.

  WM's willingness to embrace innovation has big potential in the years ahead. Right now, the firm's portfolio includes 22 waste-to-energy plants that are designed to turn the waste that WM literally gets paid to collect into renewable energy that the firm gets paid for again. At this point, the firm's energy plants make up a very small part of its total business, but waste-to-energy projects and the recent acquisition of small oil service firms should look attractive to investors right now.

  Earnings in two months look like the next big catalyst for a short squeeze in WM.

Top 10 Canadian Stocks To Buy For 2014: (CG)

The Carlyle Group is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led buyouts, divestitures, strategic minority equity investments, equity private placements, consolidations and buildups, leveraged finance, and venture and growth capital financings. The firm typically invests in agriculture, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, technology, real estate, financial services, transportation, business services, telecommunications, and media sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, consumer services, personal care products, direct marketing, and education. W ithin aerospace, defense, business services, and government services sectors, it seeks to invest in defense electronics, manufacturing and services, government contracting and services, information technology, distribution companies. In telecommunication and media sectors, it invests in cable TV, directories, publishing, entertainment and content delivery services, wireless infrastructure/services, fixed line networks, satellite services, broadband and Internet, and infrastructure. The firm seeks to hold its investments for four to six years. In the healthcare sector, it invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies , managed care, pharmaceuticals, pharmaceutical related services, healthcare IT, medical, products, and devices. It seeks to invest in companies based in Sub-Saharan Africa, Asia, Australia, Europe, Middle East, North America, and South America. The firm seeks to invest in food, financial, and healthcare industries in Western China. In the real estate! sector, the firm seeks to invest in Italy, the United Kingdom, and the United States with a target on Florida and Atlanta. It typically invests between $5 million and $50 million for venture investments and between $50 million and $1 billion for buyouts. It typically holds its investments for three to five years. Within automotive and transportation sectors, the firm seeks to hold its investments in for four to six years. The firm originates, structures, and acts as lead equity investor in the transactions. The Carlyle Group was founded in 1987 and is based in Washington, District of Columbia with additional offices across North America, Latin America, Asia, Africa, and Europe.

Top 10 Canadian Stocks To Buy For 2014: Concord Medical Services Holdings Limited (CCM)

Concord Medical Services Holdings Limited, together with its subsidiaries, operates a network of radiotherapy and diagnostic imaging centers in the People�s Republic of China. The company�s services comprise linear accelerators external beam radiotherapy, gamma knife radiosurgery, head gamma knife systems, body gamma knife systems, proton beam therapy, diagnostic imaging, and other treatment and diagnostic modalities. It offers clinical support services; develops treatment protocols for doctors; and organizes joint diagnosis between doctors in its network and clinical research. The company also operates a specialty cancer hospital, as well as leases medical and diagnostic equipment. As of March 31, 2011, it operated a network of 121 centers with 68 hospital partners that cover 46 cities and 24 provinces, and administrative regions in China. The company was founded in 1996 and is headquartered in Beijing, the People�s Republic of China.

Top 10 Canadian Stocks To Buy For 2014: Nu Skin Enterprises Inc.(NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The c ompany also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.

Top 10 Canadian Stocks To Buy For 2014: Royal Caribbean Cruises Ltd.(RCL)

Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisi�es de France. The Royal Caribbean International brand provides various itineraries and cruise lengths with options for onboard dining, entertainment, and other onboard activities primarily for the contemporary segment. It offers surf simulators, water parks, ice skating rinks, rock climbing walls, and shore excursions at each port of call, as well as boulevards with shopping, dining, and entertainment venues. The Celebrity Cruises brand operates onboard upscale ships that offer luxurious accommodations, fine dining, personalized services, spa facilities, venue featuring live grass, and glass blowing studio for the premium segment, as well as resells computers and other media devices. The Pullmantur brand provides an array of onboard activities and serv ices to guests, including exercise facilities, swimming pools, beauty salons, gaming facilities, shopping, dining, complimentary beverages, and entertainment venues serving the contemporary segment of the Spanish, Portuguese, and Latin American cruise markets. The Azamara Club Cruises brand offers various onboard services, amenities, gaming facilities, fine dining, spa and wellness, butler service for suites, and interactive entertainment venues for the up-market segment of the North American, United Kingdom, German, and Australian markets. The CDF Croisieres de France brand offers seasonal itineraries to the Mediterranean; and various onboard services, amenities, entertainment venues, exercise and spa facilities, fine dining, and gaming facilities for the contemporary segment of the French cruise market. As of December 31, 2011, the company operated 39 ships with a total capacity of approximately 92,650 berths. Royal Caribbean Cruises Ltd. was founded in 1968 and is headqua rtered in Miami, Florida.

Advisors' Opinion:

• [By Hawkinvest]

  Royal Caribbean Cruises (RCL) is one of Carnival's competitors in the cruise industry. Royal does not have the same issues as Carnival in terms of the Costa Concordia incident, but it could be impacted by discounting in cruise fares, as well as higher fuel costs. Royal Caribbean shares were recently downgraded to a strong sell by Zacks Investment Research, and a recent analyst report states:

  We are a bit doubtful about the cruising sector in the near term after Carnival's ship Costa Concordia ran aground in mid-January on Italy's west coast. The disaster hit the industry in the wake of the wave season between January and March. The recent tragedy resulted in subdued bookings. Royal Caribbean's overall booking volumes in North America came down. In Europe, where the incident took place, the cut in bookings has been steeper. Business in APMEA was also down slightly. The company expects a 20% decline in new bookings during the peak of wave season.

  This stock was trading below $26 in early January, but it has rallied with the markets. With oil prices trending higher, and the stock at the high end of the recent trading range, the shares look vulnerable to a pullback.

  Here are some key points for RCL:

  Current share price: $29.89

  The 52 week range is $18.70 to $45.45

  Earnings estimates for 2011: $2.32 per share

  Earnings estimates for 2012: $2.94 per share

  Annual dividend: 40 cents per share which yields about 1.3%

Fixed deposits, bonds, real estate: Where to invest now?

Hot Companies To Buy For 2014

Check out: Things to be kept in mind for financial planning

Below is the verbatim transcript of Vaid's interview with CNBC-TV18.

Q: Post the recent Reserve Bank of India's curbs, the opinion is that the money would start flowing from bonds into fixed deposit (FDs). So, now everyone will redeem their bonds and move them back into the safe haven which is FDs. There are number of corporate bonds being introduced at this time but what would your recommendation be on where one should be putting in money?

A: Usually the reaction happens post the event and which is what is going to be the case at most of the individual family level. I do not know whether that would be the right strategy because whatever the surprise action by RBI was to happen has happened and now post that event if one move out of the existing bond fund where one has already incurred losses and move into fixed income or fixed maturity instrument like fixed deposit bond, I do not think that will be a good strategy because one cannot be a reactive investor. One has to have a strategy in mind and stay Put and carry it through and even after this event if one is in existing bond funds whether short-term, long-term the chances of having a capital erosion over a longer period of time is almost negligible.

In most of the bond funds because of these events, initially one will have negative return but the carry comes in and that carry helps to generate returns over a period of time. So, my advice to investors who already exist in bond funds is not to redeem and now look at any kind of other instruments like FD. Stay put, recoup returns and then think about what risk appetite is to the volatility and then decide for future accordingly.

Caller Q: I had bought a property in 2000 and sold it in 2013. Now I want to buy new property. Therefore, want to know within how many years should I purchase it and what will be the tax implications?

A: Since you mentioned that you had this property from 2010 so you will be applicable for long-term capital gain tax and within that if you use indexation, which is the inflation impact, you will get 20 percent long-term capital gains tax with the indexation benefit thrown in. So, in my view it will not be a big tax on you because it has been helpful for a long period of time.

You are also looking to buy a property. So, if you buy a property within two years of selling the earlier property then you do not need to pay capital gain tax because proceeds of property if reinvested again in property, this tax gets planned much better. So, our suggestion will be since you are looking at property, stay Put with the property itself because property as an asset class has done well. Whatever said and done in India over last two-three decades, that is one asset class which has consistently performed and looking at India demography and the kind of demand supply gap it, it will continue to remain to be a good investment. So, continue to look at property.

Statoil to Export from Utsira - Analyst Blog

Norwegian giant Statoil ASA (STO) and its partners have agreed to invest around NOK 2.1 billion ($344.6 million) relating to the construction of Edvard Grieg Pipeline – a new oil export pipeline in the Utsira High area, off Norway.

The planned 43 kilometer, 28-inch pipeline will facilitate the development of the Edvard Grieg and Ivar Aasen fields, as well as other future projects in the area. The new artery will link the Edvard Grieg field – operated by Lundin Petroleum – to the existing Grane oil pipeline for onward export to the Sture terminal.

The plan for the installation and operation of the Statoil-operated pipeline has been submitted to Norway's Petroleum & Energy Ministry. The approval is expected by this autumn. The construction of Edvard Grieg Pipeline was recommended by pipe infrastructure agency Gassco.

The pipe is scheduled to be installed in the summer of 2014 with tie-in work targeted in 2015, in line with the planned production start in the third quarter of 2015 from Grieg. Grieg is being jointly developed with Det Norske Oljeselskap's nearby Ivar Aasen field due to be commissioned in 2016.

Top 5 Safest Stocks To Buy For 2014

The partners have awarded JP Kenny the contract for detail engineering on the pipeline while Allseas will be in charge for installation. The pipe will have a design life of 30 years.

Located between the producing Sleipner and Grane fields in an area with well-established infrastructure – Utsira High – also hosts the massive Johan Sverdrup discovery that is being developed.

Statoil, the operator in the pipeline joint venture, has a stake of 20%. The other partners Lundin Norway, Wintershall Norge AS, Det norske oljeselskap ASA, OMV Norge AS and Bayerngas Norge AS have a share of 30%, 18%, 14%, 12% and 6%, respe! ctively.

Statoil carries a Zacks Rank #4 (Sell). However, there are other Zacks Ranked #1 (Strong Buy) stocks – PetroQuest Energy Inc. (PQ), Ocean Rig UDW Inc. (ORIG) and Hornbech Offshore Services, Inc. (HOS) – that are expected to perform impressively over the short term.

Top 5 High Tech Companies To Buy For 2014

Getty Images Until recently, many people had never heard of Bitcoin. But the hyperbolic rise in the price of the digital crypto-currency -- from $5 as recently as mid-2012 to more than $100 recently -- has captured broader attention as financial crises (most recently the one on Cyprus) continue to make markets and investors nervous about traditional, government-issued currencies.

Proponents argue that the rise in Bitcoin's value and use marks a lack of confidence in those fiat currencies whose value is under the influence of central bankers and politicians. Skeptics point back at a long line of economic bubbles as they predict an eventual plunge in Bitcoin prices.

Top 5 High Tech Companies To Buy For 2014: The Fresh Market Inc.(TFM)

The Fresh Market, Inc. operates as a specialty grocery retailer. The company offers various perishable product categories, including meat, seafood, produce, deli, bakery, floral, sushi, and prepared foods; and non-perishable product categories, such as traditional grocery and dairy products, as well as specialty foods, which include bulk, coffee and candy, and beer and wine. As of March 20, 2012, it operated 115 stores in 21 states located in the southeast, midwest, mid-Atlantic, and northeast of United States. The company was founded in 1981 and is headquartered in Greensboro, North Carolina.

Advisors' Opinion:

• [By Zachary Silver]

  Whole Foods continues to demonstrate profitability as a natural foods grocer. With an impressive expansion plan over the next several years and substantial investments in pricing discounts and promotions, the company will be able to cater to more customers than ever before and capitalize on the estimated 12-percent growth in the organic food industry over the next two years. While competition will certainly intensify as bigger-name retailers shift their focus toward natural foods, Whole Foods has built strong brand equity and a loyal customer base. There is certainly some downside risk if the macroeconomic picture darkens: Some customers will inevitably find cheaper substitutes to Whole Foods. However, because of the grocer�� strong history of profitability and impressive growth prospects, Whole Foods is an OUTPERFORM.

• [By Greg Harmon]

  The Fresh Market (TFM), has been rising off of a bottom in March. It recently went through a 'W' consolidation and jumped higher, but is now retesting the top of the 'W'. The relative strength index (RSI) has held the mid line during the pullback and remains bullish while the moving average convergence divergence indicator (MACD) is not as positive. A turn higher, back over 53.50 could be a catalyst for a long entry, but a fall under 52 sets a target for a measured move (MM) lower to 50. This stock does not report earnings until late August.

Top 5 High Tech Companies To Buy For 2014: Virtutone Networks Inc (VFX.V)

Virtutone Networks Inc. provides voice over Internet protocol (VoIP), fax over Internet protocol (FOIP), and related phone services to business and residential customers in North America, Australia, and the United Kingdom. The company offers various products and services, including managed voice lines, managed fax lines, hosted PBX systems, analog phone lines, calling cards, hosted exchange and BEZ solutions, wholesale VoIP, Internet, and analog line management. It also provides hardware, including IP phones, wireless conference phones, phone adapter with router, 8-port IP telephony gateway, and fax/voice adapters. The company serves oil and gas exploration companies, forestry and fire fighting departments, and other businesses/organizations. Virtutone Networks Inc. is headquartered in Sherwood Park, Canada.

Top 10 Insurance Stocks To Own For 2014: Kayne Anderson Energy Development Company (KED)

Kayne Anderson Energy Development Company is a principal investment firm specializing in energy investments. The firm prefers to invest in midstream energy companies. It seeks to invest between $10 million and $75 million. The firm typically invests in non-traded companies through equity and debt instruments. Kayne Anderson Energy Development Company is based in Houston, Texas.

Top 5 High Tech Companies To Buy For 2014: Cavan Ventures Inc (CVN.V)

Cavan Ventures Inc., a junior mining company, engages in the acquisition, development, and exploration of mineral properties in Canada and the United States. It focuses on exploration for gold, silver, iron ore, and rare earths deposits. The company holds an option agreements to acquire a 100% interests in the Kaslo Property and the Kisgegas (KM Claims) Property located in British Columbia. It also has option agreements to acquire a 65% interest in the Crown King Property in Arizona; and a 100% interest in the Pythonga Property in Maniwaki region in the province of Quebec. The company was incorporated in 2006 and is based in Vancouver, Canada.

Top 5 High Tech Companies To Buy For 2014: Med Biogene Inc. (MBI.V)

Med BioGene Inc., a life science company, engages in the development and commercialization of genomic-based clinical laboratory diagnostic tests. The company�s products include LungExpress Dx, a gene expression-based test for early-stage non-small-cell lung cancer that analyzes the molecular profile of a patient�s tumor to provide information to assist in tailoring treatment for that specific patient; and LymphExpress Dx, a gene expression-based microarray diagnostic test for common subtypes of lymphoma. It has collaboration agreement with the University of Ottawa Heart Institute for gene expression-based blood tests for cardiovascular disease. The company also has collaboration agreements with the University Health Network and Duke University. Med BioGene Inc. was founded in 2002 and is headquartered in Vancouver, Canada.

Is Sprint Stock Undervalued?

With shares of Sprint (NYSE:S) trading around $5, is S an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Sprint offers wireless and landline communications products and services to individuals and businesses in the United States. Through its two segments, Wireless and Wireless, it offers voice and data transmission services to subscribers in all 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Nextel, Boost Mobile, Virgin Mobile, and Assurance Wireless. An increasing share of the population is opting for these communications products and services, fueling profits for Sprint. A recent bidding war with Dish Network (NASDAQ:DISH) for Clearwire (NASDAQ:CLWR) has ended, and left Sprint with the opportunity to take over the rest of the company that will lead to further expansion.

Sprint posted earnings on Tuesday morning, with the company reporting net losses of $1.6 billion, up from $1.4 billion a year earlier. The company was hurt by the $623 million it cost to close Nextel, which also cost Sprint 1.05 million subscribers. However, revenue increased to its highest point ever of $7.2 billion, and the company has big plans for the cash it's getting from SoftBank and wireless holdings from Clearwire.

T = Technicals on the Stock Chart are Weak

Sprint stock has struggled a bit in the last year. The stock is now trading near lows for the year, where it may need to spend some time before moving higher. Analyzing the price trend and its strength can be done using key simple moving averages.

What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Sprint is trading below its key averages, which signals neutral to bearish price action in the near-term.

5 Best Stocks To Buy For 2014

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Sprint options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Sprint Options	50.84%	6%	4%

What does this mean? This means that investors or traders are buying a very small amount of call and put options contracts, compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
August Options	Steep	Average
September Options	Steep	Average

As of today, there is average demand from call buyers or sellers, and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very small amount of call and put option contracts, and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates, and what that means for Sprint’s stock.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. In addition, the last four quarterly earnings announcement reactions can help gauge investor sentiment on Sprint’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Sprint look like, and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	-15.21%	27.59%	-1.22%	-160.00%
Revenue Growth (Y-O-Y)	0.31%	0.68%	3.24%	5.16%
Earnings Reaction	2.44%*	-0.14%	-0.51%	-1.77%

Sprint has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about Sprint’s recent earnings announcements.

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Sprint stock done relative to its peers, AT&T (NYSE:T), Verizon (NYSE:VZ), T-Mobile (NYSE:TMUS), and sector?

	Sprint	AT&T	Verizon	T-Mobile	Sector
Year-to-Date Return	25.32%	6.93%	19.39%	22.82%	16.91%

Sprint has been a relative performance leader, year-to-date.

Conclusion

Sprint provides communications services and technology to a wide variety of consumers and companies in the United States and its territories. A recent earnings announcement has investors relatively pleased with the company. The stock is trading near lows for the year, so it may need to spend some time here before heading higher. Over the last four quarters, investors in the company have had mixed feelings, as earnings have been mixed, while revenue figures have been rising. Relative to its peers and sector, Sprint has been a year-to-date performance leader. WAIT AND SEE what Sprint does this coming quarter.

InSite Vision Received Notice of Allowance from USPTO for Patent on DuraSite® 2 Ophthalmic Drug Delivery System (OTCMKTS:INSV, OTCMKTS:EQLB)

InSite Vision Incorporated (INSV)

Today, INSV surged (+2.77%) up +0.009 at $.334 with 24,100 shares in play thus far (ref. google finance Delayed: 11:27AM EDT July 8, 2013).

InSite Vision Incorporated previously reported it has received a Notice of Allowance from the United States Patent and Trademark Office (USPTO) on its DuraSite® 2 next-generation enhanced drug delivery system. DuraSite 2 provides a broad platform for developing topically delivered ocular drugs with enhanced tissue penetration in order to improve efficacy and dosing convenience. The patent is expected to provide protection to 2029 for both the delivery system and the drugs that are formulated with DuraSite 2.

InSite Vision Incorporated (INSV) 5 day chart:

EQ Labs, Inc. (EQLB)

Today (July 8), EQ Labs, Inc. (OTCMKTS:EQLB) (www.drinkeq.com) had surged (+8.70%) up +0.0004 at $.0050 with 125,000 shares in play thus far (ref. google finance Delayed: 12:43PM EDT July 8, 2013). Now at the current price of $.0050, EQLB would be considered to have experienced a (+733.33%) gain if compared to the 52 week low of $.0006.

EQ Labs, Inc. manufactures and markets energy drink products in the United States and Latin America. The company offers EQ Smart Energy Drink, in an effervescent tablet form that provides an instant energy drink once added to a beverage of choice. EQ Labs, Inc. distributes its products through national and regional distributors.

To view EQ Labs, Inc. video click link http://crwetube.com/media/eq-labs-inc-and-its-revolutionary-eq-smart-energy-.

EQ Labs, Inc. (EQLB) 5d chart:

Rogoff on Gold: ‘Not Much Has Changed Since 2010’

Gold’s stratospheric run during the height of the economic crisis and its aftermath served as an effective hedge against the possibility of even more disaster to come. It should hold, therefore, that gold’s collapse would signal a vote of confidence in the way markets are currently performing.

That's the scenario laid out by the famed economist Kenneth Rogoff in a blog posted to The Guardian’s website on Tuesday. So is it, in fact, what’s happening?

Yes and no, Rogoff writes, with typical academic fuzziness.

“To say that the gold market displays all of the classic features of a bubble gone bust is to oversimplify,” Rogoff (left) argues. “There is no doubt that gold's heady rise to the peak, from around $350 per ounce in July 2003, had investors drooling. The price would rise today because everyone had become convinced that it would rise even further tomorrow.”

The case for buying gold had several strong components, he goes on to explain. Ten years ago, gold was selling at well below its long-term, inflation-adjusted average. The integration of 3 billion emerging-market citizens into the global economy could only mean a giant long-term boost to demand.

“That element of the story, incidentally, remains valid,” Rogoff notes. “The global financial crisis added to gold's allure, owing initially to fear of a second Great Depression. Later, some investors feared that governments would unleash inflation to ease the burden of soaring public debt and address persistent unemployment.”

In fact, the case for or against gold has not changed all that much since 2010, when he last wrote about it. In October of that year, he notes, the price of gold was on the way up, having just reached $1,300. But the real case for holding it was never a speculative one. Rather, gold is the aforementioned hedge. For a high-net-worth investor, or a sovereign wealth fund, it makes perfect sense to hold a small percentage of your assets in gold as a hedge against extreme events.

Stepping into his Wayback Machine, he points to research from Stephen Harmston's oft-cited 1998 study pointing to anecdotal evidence that an ounce of gold bought 350 loaves of bread in the time of Nebuchadnezzar II, king of Babylon, who died in 562 BC.

“Ignoring the fact that Babylon's bread was probably healthier than today's highly refined product, the price of gold today is not so different, equal to perhaps 600 loaves of bread. Of course, we do not have annual data for Babylonian gold prices. We can only assume, given wars and other uncertainties, that true market prices back then, like today, were quite volatile.”

He concludes buy noting the recent collapse of gold prices “has not really changed the case for investing in it one way or the other. Yes, prices could easily fall below $1,000, but, then again, they might also rise. Meanwhile, policymakers should be cautious in interpreting the plunge in gold prices as a vote of confidence in their performance."

---

Check out Gold Gets Blamed for Record Commodity ETP Outflows.

Daily ETF Roundup: PNQI Pops On Facebook Earnings, XLB ...

It was another choppy session on Wall Street today as investors digested yet another slew of mixed earnings reports. Conglomerate 3M (MMM) reported earnings that were in line with expectations, though the company posted a decline in sales of materials used in electronics and solar energy. Auto-maker General Motors (GM) beat the Street's expectations, though profits dropped 24% from a year earlier. Meanwhile, social media giant Facebook (FB) posted stellar results, easily surpassing earnings and revenue estimates. On the economic front, initial claims for jobless benefits rose slightly more than expected to a seasonally adjusted 343,000, while durable-goods orders for June rose 4.2% .



Global Market Overview: PNQI Pops On Facebook Earnings, XLB Rises On Durable GoodsFollowing today's earnings and economic reports, all three major U.S. equity indexes managed to close in positive territory. The tech-heavy Nasdaq ETF rose 0.67%, as its underlying index logged in its best gain in nearly to weeks. The Dow Jones Industrial Average ETF inched 0.1% higher, while the S&P 500 ETF gained 0.24%.

In Europe, markets were broadly lower following lackluster economic and earnings data; the Stoxx Europe 600 shed 0.5%. Meanwhile, Japan's Nikkei Stock Average fell 1.1% on a stronger yen, and China's Shanghai Composite fell 0.6% on disappointment over new stimulus policies that include tax cuts for small businesses and accelerated railway construction.

Bond ETF Roundup

U.S. Treasuries rose today after a WSJ report speculated that the possibility of the Fed scaling back its bond buying program at its next meeting is quite unlikely. Yields on 10-year notes fell 1.5 basis points, while 30-year bonds yields rose slightly to 3.649%. Following a government auction, 7-year note yields fell 2.5 basis points .

Commodity Roundup

Crude oil futures traded slightly higher today, settling just above $105 a barrel, following an upbeat U.S. durable-goods orders report.! In other energy trading, natural gas futures fell after the EIA reported a 41 billion cubic feet increase in supplies for the week ended July 19. Meanwhile, gold futures rose 0.7% to settle at $1,329.00 a troy ounce.

ETF Chart Of The Day #1: The Nasdaq Internet ETF was one of the best performers today, gaining 4.74% during the session. As Facebook (FB) shares rallied following its stellar earnings results, this ETF gapped significantly higher at the open. PNQI inched higher throughout the day, eventually settling at $54.37 a share .

Click To Enlarge

ETF Chart Of The Day #2: The Materials Select Sector SPDR ETF also posted a strong performance, gaining 0.94% during the session. After durable-goods orders were reported to have risen 4.2% in June, this ETF jumped after initially gapping lower at the open. XLB eventually settled at $40.64 a share .

Click To Enlarge

ETF Fun Fact Of The DayThe best-performing regional strategy over the trailing 4-week period has been the Africa-Centric Portfolio, which has gained 6.82%.



Disclosure: No positions at time of writing.

Prestige Brands Gets Upgraded: Should You Be Buying?

10 Best Gold Stocks To Own Right Now

At least two investment firms upgraded Prestige Brands' (NYSE:PBH) stock July 9 on news it had acquired a small Australian firm giving it access to the Asia/Pacific region. While there's a lot to like about the branded over-the-counter drug company, its stock's trading at 27 times earnings. Is there enough growth to justify this type of multiple? Should you be buying? I'll have a look.

Over The Counter
This is the company's only focus. With the health and wellness trend becoming mainstream, Prestige Brands is nicely positioned to take advantage of this. Its 14 core brands, which include Chloraseptic, Gaviscon, Efferdent and Clear Eyes, represent 70% of its fiscal 2013 revenue of $624 million. When CEO Matt Mannelly was hired in September 2009, its annual revenue was $293 million. By the end of March, 2013, its revenues had more than doubled as a result of three acquisitions totaling $943 million that Mannelly undertook in fiscal 2011 and 2012. Adding 23 different brands including 17 it picked up from GlaxoSmithKline (NYSE:GSK) for $663 million; it's made itself more attractive both as a possible acquisition for a larger consumer products company but also to any smaller companies looking to partner with a larger, more stable business. Whichever way the wind blows, Mannelly's put Prestige shareholders in a position to benefit.

SEE: Strategies For Quarterly Earnings Season

Adding products if it doesn't lead to greater profits simply doesn't make any sense. In fiscal 2013, Prestige Brands achieved several records including revenues of $624 million, a gross margin of 56.6%, an EBITDA margin of 34.9%, $138 million in cash flow, $127 million in free cash flow and 52% adjusted earnings per share growth. Of course, none of this was achieved without paying a price. Its long-term debt at the end of March 2010 was $328 million. By the end of March this year it had risen to $978 million, almost three times the amount. As a result of the increased debt, its interest expense increased to $84.4 million with a 7.9% cost of funds, 120 basis points higher than in 2012. However, as long as the company can keep growing margins on a quarterly basis, it'll do just fine. As it stands now, its EBITDA margin of 35% is 380 basis points higher than the industry median of 21.2% and better than both Johnson & Johnson (NYSE:JNJ) and Colgate-Palmolive (NYSE:CL). Furthermore, it paid approximately 7.2 times EBITDA for the three acquisitions and now it's valued at 12 times EBITDA, suggesting the 23 brands have added $500 million in value to the company.

EPS Growth
The company has a simple formula: If it can continue to grow its core over-the-counter business by 1-2% above than the industry average, generate more than $125 million in free cash flow per year leading to faster debt reduction, and continue to generate attractive M&A transactions, its stock will continue to deliver tremendous upside. To the end, the last 12 quarters it's outperformed the industry average by more than 1-2%; Its free cash flow over the last four years has grown by 18% annually on a compound basis; and just yesterday it made a small deal to buy Care Pharmaceuticals in Australia, which gives its OTC products immediate access to the Asian market. Given its ability to generate free cash combined with a strong operational focus, Prestige Brands could borrow as much as $2.4 billion in the next couple of years and still have a healthy balance sheet. While it's doubtful it will be able to find such a beast; it's nice to know it could.

Bottom Line
B. Riley analyst Linda Bolton Weiser believes that Prestige Brands will find another target within the next 6-12 months. If it does it generates additional cash flow. If not, it pays down its another $125 million in debt. Ultimately she believes it will be acquired for $48 per share or 17 times free cash flow. Either way, shareholders win.

Most of what it sells isn't sexy. They're definitely not Michael Kors (NYSE:KORS). But we all need its products from time to time and because they aren't very expensive, we tend to lose them occasionally and have to buy more. In other words, it's very much a consumables business with little capital spending required to keep the products rolling off the lines. Can you think of a better business model? I can't.

Should you buy its stock at 27 times earnings? I say go for it. But then again, I wouldn't be selling in two or three months. Good things sometimes take time.

Should gold be part of every investment portfolio?

He, however, cautions not to invest in gold just because price of gold has gone down but in case percentage wise one's allocation has reduced due to fall in price.

He advises that one has a demat account then one should look at buying gold through an gold ETF where the spread is less and more trades.

Below is the verbatim transcript of his interview on CNBC-TV18

Q:  Investors are likely to feel that they will see lower levels on gold and silver, and some people might jump in because they see a buy on dips kind of story? How should a retail and personal finance investor approach this selling?

A: Usually, when there are turbulences, we say instead of focusing on the market conditions, go back and focus on your own condition. Which means look again at your portfolio; look at your financial goals. Usually, gold should be part of every portfolio including debt and equity because the correlation between debt and equity is negative. Which means when equity is performing well, debt will give you poor returns and when debt is performing well, equity will give lower returns. However, gold does not have any relation to either of this. To that extent, gold acts as a balancing factor.

So don't invest in gold purely on momentary basis because the price has gone down. However if your allocation has reduced percentage wise and value wise then pick up some gold. There is no need to move in and move out, and exit. There is no need to do anything as far as retail and personal finance investors are concerned.

Q: For a person who wants to get to that level where 5-10 percent of your assets should be in gold. They would prefer buying not at Rs 30,000 per 10 grams but at Rs 28,000 per 10 grams. In that sense, should a little more be done or should one just stick to SIP?

A: If your allocation has reduced, for example if you have decided that you want 10 percent into gold and the rest 90 percent into debt and equity, whatever your composition is. Now, with this fall, your gold valuation would have gone down and you need to jack it up but the only thing is you don't get into it at every dip.

Normally, we say that if the deviation is more than 8-10 percent which means you have decided you want 10 percent into gold but it has come down to 8-9 percent then you want to hike it because from the overall allocation that you had decided, it has dipped. Otherwise, if it is just miniscule percentage here or there, just live with it. Keep doing your regular monthly or quarterly allocations that you are doing into gold. Don't get too bogged down by these market movements for retail and normal investors.

Caller Q: I already have investments in gold and have a Reliance Gold Savings Fund , should I increase my investments into gold?

A: If the caller has a demat account or something then ideally he should buy gold ETF instead of picking up a mutual fund which puts into gold ETF because that's where the cost increases. He can do it on his own and pick up gold ETF on regular basis.

Now the ETF that should be picked up is where the difference between the buying and selling price of that particular ETF is less, which means the spread is less. Lesser the spread, more beneficial to the investor; more the spread, the benefit is to the broker. So he should pick up gold ETF where spread is less.

Secondly, he should look that particular ETF that has enough number of trades, so there is liquidity. Because if at some point of time he wants exit, he should pick up an ETF, which will have higher liquidity.

Eventually all these ETFs and gold funds buy into physical gold and they are kept with custodians. So in terms of safety and in terms of one over the other, the underlying asset and the pricing remains same. The only way investor benefit is by choosing one which has lesser spread and which has more trades and that's what is better for him.

Q: Do you recommend any kind of investment in silver at all in 2013?

A: What happens is that silver from investment perspective; people have to only buy physical silver. We don't have any ETF or any other products. While there could be something on commodity exchange, there isn't anything here. Hence for a smaller invest or retail participant, it is not very easy from the purchase point of view and storing point of view. To that extent there is this little difficulty.

Otherwise silver should also be part of portfolio but a small investor who wants to invest Rs 5,000-10,000-20,000 every month; he doesn't have much option unless he is buying coins and all and then stores it physically. So that is a handicap and one has to deal with that.

Top Low Price Companies For 2014

In the following video, Motley Fool energy analysts Joel South and Taylor Muckerman discuss another solid quarter for U.S. pipeline company Enterprise Products Partners (NYSE: EPD  ) , in which the company increased its distributions for the 35th straight quarter. Joel gives investors several metrics to show not only that the company can continue to support strong dividend growth, but also that its solid backlog and low financing costs mean great prospects for continued, strong growth. He then discusses why Enterprise is a buy, even a better one than some of its high-growth pipeline contemporaries.

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand-new premium research report on the company.

Top Low Price Companies For 2014: Tata Communications Limited(TCL)

Tata Communications Limited provides integrated communications services worldwide. Its Global Voice Solutions segment offers international and domestic long distance voice solutions to mobile operators, broadband operators, Web portals, and carrier customers. The solutions include voice termination, international long distance inbound, universal international free phone, managed calling card, audiotext, ISDN, national long distance, and operator-assisted call services. This segment operates a network of approximately 41,000 route kilometers for domestic long distance services in India; and international networks with coverage in approximately 200 countries and territories. The company?s Global Data and Managed Services segment provides enterprise data solutions, such as international private leased circuits (PLC), national PLC, Internet leased line circuits, Internet access, frame relay, asynchronous transfer mode, data center infrastructure and application, virtual priva te network, television uplinking, transponder lease, hosted contacted center, MVOIP and IP voice connect, business messaging and collaboration, business audio and Web conferencing, managed security, telepresence virtual meeting room, media management platform, global video network, and Ethernet services. This segment?s carrier data services comprise global transmission, IP transit, managed node, and content delivery network services; and mobility services consist of wireless global and managed roaming, signaling connection control part, intelligent CAMEL eXchange, short messaging service hub enablement, and signaling monitoring, alarming, and reporting tool. Its Other segment offers net access using Wi-Fi, Internet telephony, broadband, and content services. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was founded in 1986 and is based in Mumbai, India.

Top Low Price Companies For 2014: GTSI Corp.(GTSI)

GTSI Corp., together with its subsidiaries, provides information technology (IT) hardware and solutions to federal, state, and local government customers, as well as to prime contractors in the United States. It offers IT infrastructure solutions, including data center consolidation and optimization solutions, server and desktop virtualization solutions, cloud computing solutions, network modernization solutions, unified communications and collaboration solutions, database and software development solutions, asset management solutions, and financial services solutions. The company also provides various services comprising software development and maintenance, program and project management, database development and maintenance, and legacy systems modernization services. In addition, it offers computer hardware, software, and peripheral products, as well as provides technical support and assistance services. The company markets and sells its computer hardware and software, and solutions through GTSI.com. It has strategic partner relationships with Cisco, Hewlett Packard, Crossmatch Technologies, Microsoft, Dell, Oracle, Net App, and Hitachi. GTSI Corp. was founded in 1983 and is headquartered in Herndon, Virginia.

Advisors' Opinion:

• [By Geoff Gannon] Graham: Net-Net Newsletter in June of last year. The model portfolio bought 128 shares of GTSI at $5.02 a share. It also paid a $7 commission which ��spread over the 128 shares bought in the account ��works out to a total cost of $5.07 a share.
  
  The purchase of real GTSI shares was made in a real brokerage account after the newsletter issue picking the stock came out. So, that isn�� the problem with net-net investing. Anyone who read the newsletter could��e bought GTSI shares. And they wouldn�� have had to pay any more than $5.07 a share ��including commissions. In fact, because the model portfolio made such a small purchase ��the per share cost would probably be lower for most investors. And GTSI spent a lot of time under that $5.07 total cost shown in the model portfolio. In fact, investors had plenty of opportunities to buy GTSI ��after the newsletter came out ��at prices between $4.00 and $5.00 a share. The lowest price shown in the last 52 weeks is $3.82 a share. You probably couldn�� have gotten anything like that. But no one would��e had any trouble buying shares at around $4.50 quite regularly if you kept faith in the stock.
  
  Okay. So the usual complaint about net-net stocks ��that you can pick them but you can�� really accumulate them in an actual portfolio ��doesn�� apply here. That wasn�� the problem.
  
  What was the problem?
  
  GTSI now trades at $7.74 a share. There is a buyout offer at $7.75 a share.
  
  Before we go any further, I should point out for those interested in GTSI as a stock that currently trades ��and not just as a case study of net-net investing ��this $7.75 a share buyout is not a done deal. There is a lawsuit alleging breach of fiduciary duties, etc. And the buyout offer of $7.75 a share is lower than the $8.70 intrinsic value appraisal I gave for the stock back in June 2011 when I picked it for the newsletter. Those are the facts. Draw whatever conclusions you want from them. I have nothing more to say about GTSI! as it stands today ��this article is a look back at the Ben Graham: Net-Net Newsletter�� investment in GTSI which began one year ago. For more information on GTSI, you should:
  
  路 Read all of GTSI�� SEC filings
  
  路 Read all of Whopper Investments��posts on GTSI
  
  路 Read all of Frank Voisin�� posts on GTSI
  
  Now back to the previously scheduled post mortem��br>
  There is a buyout offer at $7.75 a share.
  
  If that goes through, investors who got GTSI at the same price as the model portfolio ��including commissions ��will make 53% on the stock. And they��l have held it for about a year (longer if they wait for the buyout to go through, shorter if they sold on the announcement).
  
  Let�� call it a 50% profit in one year.
  
  How many readers of the Ben Graham: Net-Net Newsletter actually made that profit?
  
  That�� what makes net-net investing so hard.
  
  The Ben Graham: Net-Net Newsletter has far more past picks in the red than in the green. Now, true they aren�� in the red by 50%. But there are a couple big losers. One of which might end up permanently impaired within the next year or so. More on that stock when it�� turn for a ��ne year later��treatment comes up later this year (around August I think).
  
  So what is the hard part about net-net investing?
  
  The waiting. With no catalyst in sight ��no wonderful future to visualize ��you were going to be holding a bad business. Indefinitely. That�� scary.
  
  GTSI was an ugly business. It never earned very good returns on capital. And it probably never will ��in any form. But it was cheap. GTSI sold ��at quite a few times in the past year ��at below its likely liquidation value.
  
  There were three assets that might have value in liquidation ��together ��at more than the company�� market cap:
  
  1. Cash
  
  2. Receivables
  
  3. Stake in EyakTek
  
  The third one refers to a private ��scandal-ridden ��company GTSI had a stake i! n.
  Here�� what I wrote about EyakTek back in the June 2011 Ben Graham: Net-Net Newsletter:
  
  GTSI owns 37% of a company called EyakTek. The biggest owner of EyakTek��s the name suggests��s Eyak. Eyak is an Alaska Native Corporation. That�� a special kind of small business under federal government rules. Alaska Native Corporations��we��e intentionally avoiding discussing the politics of this issue here��et super preferential treatment under federal government rules. They can behave like small businesses even when they get very, very big. And they have gotten very, very big. From 2000 to 2008 the amount of federal government spending going to these Alaska Native Corporations went from $500 million to $5.2 billion. The reason for this seems to be that non-native government contractors like GTSI started using these Alaska Native Corporations very aggressively to funnel business to themselves. There are rules limiting subcontracting of government contracts won by Alaska Native Corporations to big businesses like GTSI. Apparently, everybody��nd based on what we��e read in a U.S. Senate report investigating these Alaska Native Corporations, we do mean everybody��gnored these rules.
  
  Which brings us to EyakTek. GTSI owns 37% of EyakTek. EyakTek is a small business that sells computers to the government. It�� a very profitable business. EyakTek�� earnings are around $20 million. GTSI�� share of those earnings amounts to around $7 million a year. None of that is included in the stats we��e been giving you on GTSI up to this point. The return on assets and equity numbers we provided counted only GTSI�� operating income. Not its share of EyakTek�� earnings. Which would amount to around $7 million a year. That works out to around 70 cents per GTSI share. In theory, GTSI�� EyakTek stake alone should be worth more than GTSI�� $5 share price. Eyak��hat�� the other owner of EyakTek��ade some moves in 2010 that suggest it too thinks EyakTek is worth a lot compared to G! TSI�� s! tock price. EyakTek offered to buy all of GTSI for $7 a share in cash. The offer was later raised to $7.50 a share. EyakTek dropped the offer the second GTSI got ensnarled in the SBA scandal.
  
  All this suggests Eyak thinks EyakTek is worth a lot. Maybe more than GTSI trades for. Maybe GTSI�� stake in EyakTek is worth close to the $7 EyakTek offered for GTSI. Here�� the catch. GTSI obviously doesn�� think so. GTSI had the option of allowing EyakTek to continue doing business after graduating from the small business designation made by the federal government. In other words, GTSI��y virtue of its 37% stake��ould decide whether or not EyakTek should liquidate its business instead of trying to compete as a big contractor. The original LLC agreement that formed EyakTek gave GTSI a veto over EyakTek�� continued existence in the case EyakTek graduated from being a small business. GTSI didn�� vote for continued existence. So EyakTek should have liquidated. But it didn��. Instead EyakTek tried to buy all of GTSI. Since then��s GTSI�� CEO put it��yakTek and GTSI have ��een in an adversarial relationship�� Basically, GTSI has no visibility into EyakTek. They aren�� on speaking terms. In fact, there was a sham meeting of the LLC owners where Eyak squashed GTSI�� attempts to discuss any business other than the liquidation vote, GTSI didn�� vote in favor, and then EyakTek kept operating as if the vote hadn�� failed.
  
  Enter the lawyers. And the arbitrator. And a lot of ugliness. But finally on last quarter�� conference call, GTSI�� CEO said EyakTek and GTSI are now in settlement talks and they hope to have a deal by the end of this quarter. Will they? Who knows?
  
  What if GTSI sells out of EyakTek? What if EyakTek tries to buy all of GTSI again?
  
  It�� hard to say. Think of it as a lottery ticket. For the purposes of this newsletter, we value GTSI at $8.69 a share. That assumes liquidation value for EyakTek. The upside on top of that in a buyout of GTSI! �� Eyak! Tek stake could conceivably be several bucks per GTSI share. It could add $5 a share to what GTSI is worth. But it�� such an odd, murky situation we don�� even like hinting at that kind of number. Instead just think of GTSI as being worth $8.69 a share plus a lottery ticket. Not bad for a $5 stock.
  
  First, let�� clear up how the EyakTek story actually ended. GTSI was paid about $2.07 a share for its stake. This was about 3 times EyakTek�� trailing earnings. So, maybe 4.5 times after-tax earnings. Something like that. The P/E ratio they got doesn�� matter. Because of the nature of what EyakTek was ��a loophole for doing business with the federal government ��I always thought it was worth a miniscule multiple of its past earnings. GTSI carried its EyakTek investment on its books at $1.21 a share. And it got more than that. For my $8.70 appraisal of GTSI ��I actually cut the value of GTSI�� investment in EyakTek from $1.21 (under the equity method of accounting) to $1.09 a share to estimate the liquidating distribution GTSI might get if EyakTek was shut down. I figured they wouldn�� settle for less than the liquidating distribution would be worth. And Eyak would offer GTSI more than what the liquidating distribution would be worth if they wanted to keep EyakTek in business.
  
  As it turned out, GTSI got almost twice as much for its EyakTek stake as I assumed. Although, like I said, I had no clue what they would get ��and if the relationship was poisonous enough between the two parties they might even end up getting close to nothing. Plus there�� be tons of litigation. It didn�� turn out that way. They settled pretty quickly after I picked GTSI for the newsletter. I think it happened within the next quarter or so.
  
  So if I was so conservative in valuing EyakTek, why was I so wrong in valuing GTSI? I put intrinsic value at $8.69 a share and yet it�� being bought out for just $7.75 a share. Does that mean the buyout price is too low?
  
  Maybe. I don�� really! think th! e buyout adds or subtracts much value from what GTSI shareholders already had. It�� just an event. A way of getting the market price of the stock to reflect what shareholders already owned. It�� not like the offer ��reated��value. Or like GTSI shareholders are getting a good deal. It�� not a particularly good sale price. The buyers will do fine from a price perspective. The quality of what they��e buying is where they will either end up making money or losing money ��depending on what they do with it. But the buyers got a fine deal on price.
  
  Before the deal was announced, GTSI shares were trading at $5.30. After the deal was announced, they were trading at $7.72 a share. So, the buyer and Mr. Market had two different appraisals of the company. I had a third ��and that was about $8.70 a share. That was not an overly conservative appraisal. I would never have suggested buying shares of GTSI at $8.70 a share. Only that you might get a chance to sell them at $8.70 a share in the future. It was a best guess as to what the company was really worth in June 2011. And I�� stick by that estimate. My appraisal in June 2011 was 73% higher than GTSI�� stock price at the time. The buyout offer ��a year later, with some intervening events ��turned out to be 54% higher than the June 2011 stock price.
  
  This highlights the importance of Ben Graham�� margin of safety principle. I was off by quite a bit. I appraised GTSI at 12% higher than what a control buyer actually offered. I was wrong. But Mr. Market was wronger. He guessed 35% lower than what a control buyer offered. And that was just in June 2011. Over the next year, Mr. Market would guess anywhere from 30% to 50% lower than what a control buyer would eventually offer for GTSI.
  
  Now, it could be argued that the really hard part of net-net investing is figuring out when some event like a buyout is going to happen. If GTSI hadn�� been sold to a control buyer in the next year ��but instead five or six years down the ro! ad, an in! vestor�� annual return in GTSI would��e turned out very differently.
  
  This is especially true because GTSI�� actual business is mediocre. And that�� a generous description. At best, holding GTSI just gets you long-term bond-like returns. Nothing better. Value does not build in a shareholder�� favor at GTSI. There was a one-time gap between price and value ��the value was anywhere from 50% to 100% higher than the stock price at various points over the last year. The issue was when you would get that 50% to 100% return.
  
  In fact, this might even be more important than whether you bought GTSI at a little higher than the Ben Graham: Net-Net Newsletter did ��say $5.30 a share ��or a lot lower (say $4.00 a share). That was obviously important. But if you buy a net-net within one year of its being bought out ��you��e often going to do all right regardless of the exact price you pay.
  
  There�� a big gap between $5.30 a share and $4.00 a share (pretty much the range GTSI had been trading in before the announcement). But it�� the gap between $7.75 a share and $5.30 a share that mattered most.
  
  So time matters. But focusing too much on time could be a problem in net-net investing. In fact, I think it is. And we can demonstrate that with a little annual return math.
  
  If you bought GTSI at a price of $5.30 a share right before the buyout happened ��which is pretty much the highest price you could��e paid in the last year ��and then the buyout actually didn�� happen for a full five years, what would your annual return be?
  
  Well, $5.30 invested today that turns into $7.75 in five years is an annual return of 7.9% a year.
  
  When you think of net-net investing, you probably think of big risks and big returns ��and there are both. So you probably want more than 7.9% a year. But I actually don�� expect the stock market to do any better than that for you over the next five years. So, getting stuck in GTSI for five years and bought out at $7.75 a! t the end! of that period would��e been pretty close to a market-matching investment. That�� my view. We��l see. Maybe stocks will return 10% or 15% or 20% between 2012 and 2017. But I think it�� a lot more likely they return about 8%. No more.
  
  If GTSI had been bought out in four years, your annual return would be 10% a year. If it had been bought out in three years, your annual return would be 13.5%. If it had been bought out in two years, your annual return would be 20.9% a year. And if it had been bought out in one year ��as it actually was ��your annual return would be 46%.
  
  All of this assumes you paid pretty much the highest price at which GTSI traded before the buyout. A price of $5.30 a share was actually higher than where the stock usually traded over the last year. Trust me ��it was in the red for most of the time after I picked it for the newsletter.
  
  And all of this assumes the potential buyout value of GTSI would neither grow or shrink over time. That�� clearly wrong.
  
  But over the last 10 years, the growth in GTSI�� value ��and yes, intrinsic value probably grew, I�� peg the very uneven growth at maybe 2% a year ��was hardly enough to offset the risk of a permanent and catastrophic loss in the stock. Something from which an investor couldn�� recover.
  
  Historically, GTSI had done better than the last 10 years. And if Ben Graham�� quote from the Roman poet Horace is to be believed ��perhaps it is not only the stock that would rise again in people�� perceptions but actual business conditions as well. It�� very possible. Maybe GTSI could earn 6% a year on its book value one day. I doubt it could do much more over a full decade.
  
  Over the last 20 years, GTSI�� average return on equity was 6%.
  
  A 6% build in intrinsic value hardly compensates a shareholder for the risk taken by owning a business like GTSI ��a business which often has operating margins around 1%.
  
  So, really we were always talking about a pretty simple! proposit! ion. The business may earn a return. Or it may not. What little return it manages to earn is unlikely to compensate shareholders beyond the risk they are taking holding the stock. This is not a buy and hold investment. It is nothing that will ��nowball.��br>
  But the stock price was wrong. It did not value the company at anywhere near its value to a control owner. Mr. Market was probably leaving anywhere from a 50% to 100% upside on the table when he offered to sell GTSI to you in the past year.
  
  So, the question was ��how long would it take for this gap between price and value to close:
  
  1 year: 46%
  
  3 years: 14%
  
  5 years: 8%
  
  10 years: 4%
  
  And that�� what a lot of net-nets look like. You think a control buyer would pay 50% (or more) for the whole business ��but you see no reason why he�� do that now. If he comes along in a year, you��l make 40%. If he comes along in a decade, you��l make 4%. All the while you��l be taking the risk of owning a lousy business.
  
  Is it worth it?
  
  In my experience, yes. It is worth it in theory. But, for the vast majority ��I don�� know if it�� 95% of investors or 99% or 99.99%, but it�� not 50% ��net-net investing is an emotional impossibility.
  
  I don�� know how many readers of the Ben Graham: Net-Net Newsletter owned GTSI. One reader did email me about it. But he�� an experienced net-net investor. Someone with the right psychological make up for this sort of thing. Certainly far ahead of most investors in terms of being able to own a mediocre business without an obvious catalyst slowly drift down in price for the better part of a year ��and then, bang! Make a 40% return in one day.
  
  So is net-net investing hopeless? Should you just give up?
  
  If you don�� think you like net-net investing now ��yes, you should give up. There�� no point in sticking around and trying to train yourself to love it. You won��. Move on to something else ��otherwise, you��l lose a lot! of money! in net-nets.
  
  If you think you really do like net-net investing ��and you can imagine yourself owning things like GTSI, I do have two pieces of advice:
  
  1. Put 100% of your focus on buying and 0% of your focus on selling
  
  2. Put 100% of your focus on the downside and 0% on the upside
  
  As my 12% misappraisal of GTSI shows ��versus Mr. Market�� 30% to 50% misappraisals ��it�� often not that hard to value a net-net better than the market. But valuing a net-net is not what makes you money. You have to buy a net-net and you have to hold a net-net.
  
  Some people can value net-nets really well. But they don�� actually end up buying them. Other folks buy and sell net-nets so rapidly they accumulate a long list of stocks they once owned that eventually got bought out ��a year or three after they had already sold them.
  
  You want to be there for the buyout.
  
  Now, of course, many net-nets do not get bought out. And the truth is that if Mr. Market had changed his perception of GTSI such that the stock traded at $9 a share ��there probably wouldn�� have been any buyout at all.
  
  That�� fine.
  
  Yes. It means you might have had to sell to realize a return. I�� not against selling net-nets. But I am against watching net-nets like a hawk. I don�� think it�� necessary. If you pick them right in the first place, a quick check up once a year is all the time you need to spend revisiting your already-owned net-nets. The rest of your time is better spent finding new ones.
  
  And that�� the hardest part of net-net investing.
  
  Waiting.
  
  It�� really easy to find net-nets. It�� a little bit difficult to actually have the stomach to buy them. And it�� emotionally impossible for most people to actually hold net-net long enough to get paid.
  
  And here we��e been talking about a stock you only needed to own for a year.
  
  Folks like Ben Graham and Walter Schloss ��great net-net investors ��often held net-nets for clos! er to fou! r years.
  
  How�� they do it?
  
  My theory is that they were always nibbling on a new net-net. Buying little bits of new stuff. Accumulating 100 net-nets. But never at once. So they could always focus on buying something cheap. And they didn�� have to worry about selling so much.
  
  They really did have faith that somehow price and value would converge. That they�� get paid one day for buying at two-thirds of intrinsic value.
  
  That faith is the hardest part of net-net investing. I think it�� easiest to have faith like that if you don�� focus on it. If you focus instead on a process that keeps you finding new net-nets and minimizes the temptation to sell what you already own.
  
  

Top 5 Cheap Stocks For 2014: Nadlan Ord 0.25p(NAD.L)

Namakwa Diamonds Limited, an integrated diamond resource company, through its subsidiaries, engages in the exploration, evaluation, development, and mining of diamond properties. Its flagship project is the kimberlite project covering 19.8 hectares located in Lesotho. The company also maintains alluvial assets in the North West Province of South Africa, as well as exploration and development assets in the Northern Cape of South Africa (alluvial) and Namibia (marine). Namakwa Diamonds Limited was founded in 1979 and is based in Hamilton, Bermuda.

Top Low Price Companies For 2014: Call Genie Inc(GNE.TO)

VoodooVox Inc. provides local mobile searching and advertising solutions to publishers, advertisers, and operators in North America and internationally. The company offers analytics tools for publishers to understand who their audience is; ad networks that supplies targeted advertisements in text, video, and voice formats; SMS, audio, and mobile-Web-enabled services; self-service toolkits; action tracking services with pay-per-call and pay-per-click options; and white-label local business search services. It also provides tools for creating advertisements, defining campaign targets and goals, monitoring results, and optimizing campaigns; direct VoIP call connection; interactive voice; and prepaid calling card offer wall, an interactive content channel. In addition, the company offers a suite of call center products, including directory workstation and search engine, directory data manager, open integration framework; and voice response products, which support various busin ess models. Further, it provides the VoodooVox Ad Exchange software for managing multi-media advertisements; and referred call services for telecommunications companies and directory assistance service providers on a licensed product basis. The company was formerly known as Call Genie Inc. and changed its name to VoodooVox Inc. in January 2012. VoodooVox Inc. was founded in 2000 and is headquartered in Toronto, Canada.

Top Low Price Companies For 2014: Pacific Ethanol Inc.(PEIX)

Pacific Ethanol, Inc. produces and markets low carbon renewable fuels in the United States. It sells ethanol to gasoline refining and distribution companies; provides ethanol transportation, storage, and delivery services in the Western United States, primarily in California, Arizona, Nevada, Utah, Oregon, Colorado, Idaho, and Washington; and markets ethanol co-products, including wet distiller grains and syrup to dairy operators and animal feed distributors. The company also provides operations, maintenance, and accounting services to a cellulosic integrated bio-refinery in Boardman, Oregon. Pacific Ethanol, Inc. was founded in 2003 and is headquartered in Sacramento, California.

Where Will Elan Go Next?

With shares of Elan (NYSE:ELN) trading around $15, is ELN an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Elan is a biotechnology company that is focused on discovering and developing advanced therapies in neurodegenerative and autoimmune diseases. Such diseases include Alzheimer's Disease, Parkinson's Disease, Celiac disease, Crohn's Disease, and Narcolepsy. As these diseases take a toll on many lives, any positive progress Elan can make will be very rewarding. As many of these diseases come to the attention of people around the world, biotechnology companies such as Elan will see rising demand.

Just recently, it was announced that Perrigo (NASDAQ:PRGO) will purchase the Irish pharmaceutical company, Elan, for $8.6 billion in order to take advantage of Ireland's lower tax rates. Perrigo's corporate income tax rate will drop from 30 percent to 12.5 percent by re-domiciling in Ireland. According to Perrigo, the deal will save the company $150 million a year in taxes.

T = Technicals on the Stock Chart are Strong

Elan stock has been rising over the last several months. The stock is now trading at highs for the year, and at prices not seen since 2008. Analyzing the price trend and its strength can be done using key simple moving averages.

What are the key moving averages? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Elan is trading above its rising key averages, which signals neutral to bullish price action in the near-term.

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Elan options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Elan Options	18.18%	86%	83%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
August Options	Flat	Average
September Options	Flat	Average

As of today, there is average demand from call buyers or sellers, and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts, and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Elan’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Elan look like, and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	78.42%	-20.00%	-452.69%	-133.33%
Revenue Growth (Y-O-Y)	900.00%	27350%	13.37%	9.74%
Earnings Reaction	4.46%	-0.75%	-10.13%	-0.28%

Elan has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about Elan’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

Top 5 Undervalued Stocks To Invest In 2014

How has Elan stock done relative to its peers, Pfizer (NYSE:PFE), Sanofi (NYSE:SNY), Biogen Idec (NASDAQ:BIIB), and sector?

	Elan	Pfizer	Sanofi	Biogen Idec	Sector
Year-to-Date Return	51.52%	17.87%	11.27%	48.91%	24.19%

Elan has been a relative performance leader, year-to-date.

Conclusion

Elan is a biotechnology company that is looking for ways to improve and better the lives of people with disruptive diseases. The company is now set to be bought-out by Perrigo. The stock has been rising over the last several months, and is now trading at prices not seen for five years. Over the last four quarters, investors have had mixed feelings about the company, as earnings have been mixed, while revenue figures have been improving. Relative to its peers and sector, Elan has been a year-to-date performance leader. Look for Elan to OUTPERFORM.

10 Best Gold Stocks To Own Right Now

 Let me start today's essay with an admission...

 

I have no idea what the price of gold will be by the end of the year. Of course, neither does anyone else.

 

I've recommended owning gold and silver bullion for many years. My company began recommending it repeatedly in the early 2000s because we saw the government's efforts to weaken the dollar as a bullish sign for gold prices.

 

Then in 2006, I began to see that we were inevitably heading for a currency crisis. These weak-dollar policies had continued for far too long and were joined by huge increases to both public and private debts. That's when I began warning about the ultimate loss of our dollar's world reserve currency status, something I've called the "End of America."

 

 So for nearly seven years, I've been telling people that, whether gold looked expensive or not, it was prudent... or even necessary... to own some as insurance. I still believe that's true. I personally own gold. I've never sold a single ounce.

 

I hold gold because I believe the entire global system of paper money and central banking is in the process of self-destructing. And I believe in a relatively short time – perhaps five or 10 years – the existing monetary system will collapse. During this period of turmoil, I expect gold and silver will maintain their purchasing power, while all forms of paper money will be rendered worthless.

 

I see gold as a form of savings... a universally recognized form of money that is no one else's liability. In that way, it is far superior to any other form of money currently available today.

 

 At the same time... I am fully aware that as the public's awareness of the risks associated with our paper-money system grow, volatility in gold prices will spike. Worse, I knew that as the public began to invest in gold, the likelihood increased for a wicked bear market designed to separate the foolish, the leveraged, and the ignorant from their savings.

 

Just remember... nothing goes up for 12 years in a row. Nothing. When my driver in Baltimore asked me if he should buy some gold in 2011, I figured we had to be near the top. But... gold continued to rise.

 

I've never seen any other company or commodity go up for 12 straight years like gold has done. (That happened, by the way, not because anything about the gold market changed but because of incredibly stupid government policies.)

 

 The Bank of Japan was the last major central bank to resist the inflationary policies embraced by the Federal Reserve and the European Central Bank. That changed with the election of new Prime Minister Shinzo Abe.

 

You would have thought that just as the last major central bank in the world (the Bank of Japan) had announced a policy of essentially unlimited money printing, the price of gold would soar. Japan's decision to inflate away its debts – along with the U.S. and Europe – means there's no major form of paper money left with any credibility at all.

 

The world has begun a "race to the bottom" – a race designed to rob creditors and wage earners. And so... why is gold collapsing? And why would the share prices of the highest-quality gold and silver companies – Newmont Mining (NEM), Freeport-McMoRan (NYSE: FCX), Silver Wheaton (NYSE: SLW), and Royal Gold (NASDAQ: RGLD) – be essentially in freefall?

 

 

 When I look at the precious-metals complex – the commodity prices, the production companies, the collectibles, and the royalty companies – I see a huge boom over the past dozen years.

 

When a sector booms, a lot of interesting things happen. People who are suddenly making a lot of money come to believe they're smart. They inevitably start doing foolish things. And so I've watched as people began to sell regular bullion coins as collectibles from China... and took huge commissions to do so. I've seen investors mortgage their homes to buy gold. (Yes, really.)

 

 I've watched well-run, conservative miners lose their footing, too. Many large mining companies have made horrendously expensive (and foolhardy) acquisitions over the past decade.

 

Stillwater Mining, for example, bought a $263 million mine in Argentina... a country not well-known for respecting the rule of law. As you may know, we recommended shares of Stillwater recently in my Investment Advisory. We did so because the stock was so cheap. Even after writing off Argentina completely, it still seemed attractive. But we were early. We stopped out of that position recently. (Likewise, we may still be proven wrong about our valuation of Newmont Mining, which seems incredibly cheap to us.)

 

 And worst of all, in my view, were the many companies in the sector that replaced their conservative leadership and strategies to become far more aggressive. Silver Standard (NASDAQ: SSRI) is perhaps the best example. In 2006, it decided to abandon its carefully constructed strategy of buying and holding silver in the ground – a strategy it had followed successfully for decades. As I explained in my November 2006 issue (where I recommended closing out of the position)...

 

Silver Standard's business to date has been focused on acquiring high-quality silver properties in the ground. However, it recently announced it will put one of its mines into production... This makes me uncomfortable.

10 Best Gold Stocks To Own Right Now: Claude Resources Inc.(CGR)

Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  Hardly a johnny-come-lately, Claude Resources initiated small-scale gold production from its flagship Seabee mine in Saskatchewan in 1991. Just last year, Claude added the Santoy 8 mine to that operation to offer a touch of timely growth. Meanwhile, the operation hosts a number of compelling exploration targets like the recently discovered Neptune zone. After 10 of 15 recent drill holes from Neptune featured visible gold, including a nice high-grade intercept of 84.66 g/t over 3.2 meters, prospects are building for Claude to add some additional years to this time-tested operation.

  While I welcome the existing cash flow from Seabee, my investment thesis for Claude Resources centers around a pair of exciting exploration properties: the Amisk joint venture project southeast of Seabee and the Madsen property at Red Lake, Ontario. At Madsen, historical gold production between 1938 and 1976 yielded 2.4 million ounces at an average grade of 9 g/t. To date, Claude has identified an indicated resource of 928,000 ounces at a comparable grade. At Amisk, drill intercepts of eye-catching thickness suggest strong potential for a profitable open pit operation, including an intercept of 2.16 g/t over 241 meters! The deposit's 921,000 indicated gold-equivalent ounces represent only an early stage hint of the deposit's full potential. The stock is a top-10 holding for Sprott Asset Management, and a core holding for this Fool as well.

10 Best Gold Stocks To Own Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  Although I have not shed my long-standing contention that Yamana Gold offers one of the more deeply discounted vehicles for long-term gold exposure, lately my outlook for IAMGOLD has turned particularly bullish. With a looming spin-off of a 10% to 20% stake in the company's reliably profitable Niobec niobium mine, and the recent sale of its interest in a pair of high-cost gold operations in Ghana for $667 million, IAMGOLD finds itself in terrific financial shape to execute an aggressive $1.2 billion expansion imitative at existing operations.

  Considering the $1.6 billion net asset value (after tax) that IAMGOLD recently assessed for the Niobec mine alone, and a presumed hoard of more than $1.2 billion (in cash, cash equivalents, and gold bullion held for investment), at a market capitalization of $6.9 billion I find extreme comfort in the market's resulting valuation for IAMGOLD's 15.2 million ounces of attributable gold reserves.

Hot Dividend Stocks For 2014: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Vatalyst]

  With headquarters in Canada, Agnico-Eagle is a gold producer that has been around for a while with operations in Canada, Finland and Mexico and the United States that has paid a cash dividend for 29 consecutive years. AEM gained 25% over the year and reported 83.5% growth in quarterly earnings. It has a market capitalization of $11.4 billion and a trailing P/E ratio of 34x with expectations of earning $0.55 per share. AEM, like other operators like it, are likely a better bet than ETF trust options like SPDR Gold Shares (GLD).

10 Best Gold Stocks To Own Right Now: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  I've been reminding Fools to consider positioning for Northgate Minerals' golden explosion for months, and patient gold investors continue to await the day when Northgate's powerful prospects are more fully reflected in the shares. Construction of the critical Young-Davidson mine continues right on schedule, and first production now stands about two quarters away. That means Northgate is reasonably likely to achieve its 2012 production target of 300,000 ounces, followed by 350,000 ounces in 2013. Meanwhile, Northgate recently drilled "one of the best holes ever intersected on the property" -- featuring 4.31 grams of gold per ton over a very wide 79.6-meter segment -- from a new discovery zone outside of the existing 2.8 million-ounce reserve.

  If Young-Davidson were Northgate's sole asset, these shares would still be undervalued here at about $2.60 per share. With a preliminary assessment looming for the reworked Kemess Underground project, a new drill program at the Awakening Gold project in Nevada, and two operating gold mines in Australia, Northgate figures among the clearest bargains in the gold patch.

10 Best Gold Stocks To Own Right Now: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:

• [By Mel Daris]

  AngloGold Ashanti (AU), a South African company, is trading for $33 and pays a dividend which yields 3.20%. The stock has an astonishing P/E of 1,015. Its net income totaled $112 million last year, but negative cash flows of $620 million. It holds net tangible assets of $4.3 billion and its balance sheet has not grown nearly as quickly as the other companies on this list. AngloGold has two new mines coming online in Congo and Colombia.

10 Best Gold Stocks To Own Right Now: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Smith]

  Although its name does little to denote this, Goldcorp is a well-positioned silver play for 2011, according to the analysts we surveyed.

  “The name is one that people tend to think of it as gold, but it's in the top 20 of silver producers globally with about 13 million ounces a year ,” says Peter Sorrentino of Huntington Funds.

  Morningstar analyst Min Tang-Varner recently raised her fair value estimate for Goldcorp by $12 a share to $48 after the company reported a 28 per cent rise in revenue for the third quarter ended Sept. 30 compared with the year before.

  This, despite 4 per cent decline gold production, as revenue received a boost from $1,239/oz realized gold prices and $19.15/oz silver prices.

  Tang-Varner tells investors that the reduction of Goldcorp's cash cost by $100/oz from the prior quarter to $260/oz due to higher silver, copper and zinc production and the run-up in their prices, was “rather extraordinary.”

  Sorrentino says Goldcorp is a stock that investors would be “wise to consider” if they were looking for a name that would be discovered suddenly as a major silver play, without feeling that they were overpaying for it.

  Goldcorp also prices everything that it does in Canadian dollars, which should reduce currency risks for investors in Canada.

• [By Christopher Barker]

  Every ship needs an anchor, and for gold investors looking to navigate the admittedly rough seas of the gold mining industry, I can think of no greater anchor than Goldcorp. With the important caveat that some of the company's substantial challenges faced during 2012 could present further selling pressure in early 2013 as forward production guidance takes a bit of a haircut, I agree with Credit Suisse analyst Anita Soni that any such weakness may present a meaningful buying opportunity. I won't go into great detail here, since investors can access my premium research report on Goldcorp for further discussion of the substantial long-term investment opportunity in the shares of this quality producer.

10 Best Gold Stocks To Own Right Now: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Christopher Barker]

  This stock has set the gold standard for share price appreciation among gold miners, advancing more than 140% since I introduced Fools to the new face of New Gold back in January 2010. Looking out over the long-term horizon, New Gold has constructed a gorgeous development pipeline to complement its trio of producing gold mines, featuring: a low-risk 30% stake in Goldcorp's El Morro project in Chile, the New Afton copper and gold project in British Columbia (with production scheduled to begin mid-2012), and the recently acquired Blackwater project north of New Afton.

  Although I expect the Blackwater deposit to expand considerably with further exploration, the project's initial indicated gold resource of 1.8 million ounces already leaves New Gold in command of 14.7 million ounces of measured and indicated gold resource. Tossing in copious supplies of by-product metals -- most notably 83.5 million ounces of silver and 3.5 billion pounds of copper -- New Gold is positioned to enjoy consistently low production costs throughout its sustained growth trajectory.

10 Best Gold Stocks To Own Right Now: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

10 Best Gold Stocks To Own Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Goodwin]

  The shares closed at $88.19, down $1.1, or 1.23%, on the day. Its market capitalization is $77.08 billion. About the company: Siemens AG manufactures a wide range of industrial and consumer products. The Company builds locomotives, traffic control systems, automotive electronics, and engineers electrical power plants. Siemens also provides public and private communications networks, computers, building control systems, medical equipment, and electrical components. The Company operates worldwide.

10 Best Gold Stocks To Own Right Now: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:

• [By Curtis]

  Golden Star Resources, Ltd Com (AMEX:GSS): This equity had 10,766,183 shares sold short as of Aug 31st, as compared to 9,400,663 on Aug 15th, which represents a change of 1,365,520 shares, or 14.5%. Days to cover for this company is 3 and average daily trading volume is 3,419,976. About the equity: Golden Star Resources Ltd. is a mid-tier gold mining company. The Company’s operating mines are situated along the Ashanti Gold Belt in Ghana, West Africa.