Goliath Gold Miner Creation Has Failed

It's now official: Barrick Gold (NYSE: ABX  ) and Newmont Mining (NYSE: NEM  ) failed to negotiate a merger. This means that we will not see a creation of a $33 billion gold mining company – at least for now. Both Barrick Gold and Newmont Mining shares finished the day of the announcement on a sour note. However, I don't see that much reason for pessimism regarding the failed merger.

Press release quarrel highlights merger difficulties
The merger talks finished with the issue of belligerent press releases from both companies. In short, both Barrick Gold and Newmont Mining accused each other of the failed negotiations. Barrick stated that Newmont was trying to reverse the previously arranged terms regarding the location of the head office, the assets that would have been included in a spinoff company and the governance arrangements. In its turn, Newmont stated that it strongly disagrees with Barrick's view of the merger process.

This press release quarrel raises the important question of whether Barrick's and Newmont's union would have been organizationally viable. It looks like officials of both companies held different views on important things while negotiating the merger, and those views did not come closer to each other as a result of negotiations.

Not a merger of equal
The merger of Barrick Gold and Newmont Mining would not have been a merger of equal companies. Barrick Gold is bigger and more cost efficient. Newmont's recent first quarter earnings release revealed that the company was successful in pushing its all-in sustaining costs to $1,034 per ounce of gold. However, Barrick showed sub-$1,000 performances on the cost front in each quarter of 2013. Thus, the possible merger would have lifted the cost of mining gold for Barrick's shareholders.

Barrick stated that the proposed merger could have brought positive synergies on the cost front, but never mentioned which synergies it was talking about. The size of such savings was also unclear. At the same time, one could imagine the difficulties of running the joint company with a plethora of stalled projects and a pile of debt.

Spinoff negotiations could have broken the deal
One thing that Barrick Gold mentions in its press release regarding merger discussions with Newmont is the asset composition of a spinoff company. Spinoffs often receive poorly performing assets, lifting the burden from the parent company. At the same time, the spinoff must be viable enough to continue operating on its own.

Importantly, shareholders do receive shares of the spinoff, and are still exposed to the performance of its assets, just like they were exposed to their performance when these assets were a part of a parent company. That's why the mix of assets in the spinoff is important. The fact that Barrick and Newmont were unable to strike a deal on the composition of the spinoff highlights the differences between the two companies.

Bottom line
So far, this is not a good year for deal making for big gold miners. Goldcorp failed to acquire Osisko Mining, and Barrick Gold failed to merge with Newmont Mining. I don't think that Barrick and Newmont shareholders should be disappointed with the outcome. The resulting company would have been huge and difficult to manage, while the obtained synergies might not have translated to real benefits.

OPEC is absolutely terrified of this game-changer
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How to Select Investments For Your Retirement Accounts

Ariel Skelley/Getty Images Often, when investing in a retirement account, people end up inadvertently titling their overall risk profile in their combined accounts into either too much risk or too little risk. They can also end up not fully utilizing the tax advantages inherent in their qualified-retirement accounts. You want to invest prudently in all of your investment accounts, as you will need your money to grow over your lifetime. But how do you decide which types of investments should go into your retirement accounts vs. your taxable accounts? It is best to start by deciding on the contents and weightings of your overall investment portfolio. It is advisable to first talk to a financial planner to make sure you map out how long your money will be invested, and when you plan to start taking money out of your accounts. Establishing the appropriate risk profile of your overall portfolio is probably the most important decision you have to make. Then, you and your planner can decide on your diversification allocation across a variety of asset classes and styles of investment. Such investment categories should include a variety of domestic and international stocks and bonds as well as an allocation to short-term low risk savings. Small amounts of nontraditional asset classes, such as real estate investment trusts and commodities, can also help balance out the risk and return of your overall portfolio. Only after you have decided on the contents of this total portfolio and your investing time horizon, should you then move to the next step of allocating the investments across the different types of accounts.

These 13 states raked in $34B in gaming revenue

Las Vegas is easily America's city that is most synonymous with recreational risk-taking. Atlantic City, especially for those on the East Coast, has also long been known as a place to take a chance on blackjack or drop coins in a slot machine. But in truth, the United States is dotted with gambling havens from coast to coast. With tax rates up to 40%, these businesses can generate hundreds of millions in state revenues.

We decided to look at the states with the most revenue from commercial gambling in 2012. Some of the 13 states that made our list won't surprise you. Others, such as Iowa, may.

The numbers do not include tribal gaming, because The National Indian Gaming Association does not publish state-by-state revenue, though revenue on all Native lands combined was $27 billion in 2013. Including all of the money tribal casinos generate would place California and Connecticut among the top markets for gambling in the U.S., and onto this list.

But non-tribal casinos are growing, and most of the states on this list legalized gambling sometime in the last 25 years. New casinos are built every year and many of the states with the biggest gaming markets may surprise you.

13. Colorado

Revenues: $766 Million
Year Legalized: 1990
Types: Land-based

Yes, the state that has lately become famous for its, well, greener economy, also happens to be a great place to risk the family fortune. Colorado has a staggering 41 casinos, which generate more than $100 million in taxes for the state.

12. West Virginia

Revenue: $948 Million
Year legalized: 1994
Types: Racetrack with games, land-based

Known primarily for mining industry and Appalachian culture, the state of West Virginia rakes in almost $1 billion a year in gaming revenues from only five casinos. In addition to the racetrack casinos in several cities, the four-star Greenbrier Hotel in White Sulphur Springs recently added gaming, the first non-track casino in the state.

11. Michigan

Revenue! : $1.42 billion
Year legalized: 1996
Types: Land-based

Detroit's auto industry may be trying to regain its footing, but Michigan's casinos are holding steady at $1.42 billion in revenues from just three casinos. The motor city is home to an MGM Grand hotel with casino, and two other casinos: Greektown and Motor City.

10. Iowa

Revenue: $1.47 billion
Year legalized: 1989
Types: Riverboat, land-based and racetracks

Iowa's gaming industry has actually grown modestly over the last couple of years. The state has a mix of 18 riverboat, standalone and racetrack casinos with slots and table games.

9. Illinois

Revenue: $1.64 billion
Year legalized: 1990
Types: Riverboat

Illinois' 10 riverboat casinos host roughly 16 million visitors a year. Its most recent addition opened in 2011, leading to a 10% jump in revenues in 2012.

8. Missouri

Revenue: $1.77 billion
Year legalized: 1993
Types: Riverboat

Missouri's thirteen riverboats net about $471 million in tax revenues for the state, but new competition from neighboring state Kansas is stealing away business—it contributed to a 2.2 % decline in sales in 2013.

7. New York

Revenue: $1.8 Billion
Year legalized: 2001
Types: Racetrack casinos and one land based-casino

The year-old Resorts World New York in Queens is the state's first casino that is not attached to a racetrack. It helped revenues leap 43% last year. The nearby Empire Raceway in Yonkers is still the biggest money maker in the state.

6. Mississippi

Revenue: $2.25 Billion
Year legalized: 1990
Types: Docked riverboats, land-based

Flooding in the Mississippi River was hard on the riverboat casinos that are more or less permanently docked on the riverbanks. But they have recovered and enjoyed a slight revenue increase in 2012.

5. Louisiana

Revenue: $2.40 Billion
Year Legalized: 1991
Types: Riverboat, land-based and racetrack casinos with slots and table games

Many of! Louisiana's 18 casinos are in New Orleans, but the opening of the L'Auberge Casino Hotel in Baton Rouge boosted the state's revenue's by 1.3% in 2012.

4. Indiana

Revenue: $2.61 Billion
Year Legalized: 1993
Types: Riverboats, land-based and racetrack casinos with slots and table games

Indiana does an unexpectedly large business in gaming, but increasing competition from neighboring states Ohio and Kansas contributed to a 4% revenue decline.

3. New Jersey

Revenue: $3.05 Billion
Year Legalized: 1976
Types: Land-based

All of New Jersey's non-tribal casinos are concentrated in the city of Atlantic City, which alone generates almost as much revenue as the entire state of Pennsylvania.

2. Pennsylvania

Revenue: $3.16 billion
Year Legalized: 2004
Types: Land-based and racetrack casinos with slots and table games

Pennsylvania surpassed New Jersey in overall revenue for the first time in 2012. The 11 casinos in cities across the state generated almost $1.5 billion in tax revenues that year.

1. Nevada

Revenue: $10.86 Billion
Year Legalized: 1931
Types: Land-Based

Besides Las Vegas, of course, Nevada is freckled with towns and cities that offer gambling—the state has 265 casinos. The northeastern corner of the state is even home to a town called Jackpot.

MORE: Online gambling -- New home for money launderers?

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CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Diggers ready to unearth Atari's E.T. games

Hidden for three decades in a landfill deep in the New Mexico desert lie thousands of Atari cartridges from what is widely believed to be worst video game ever made — or so the urban legend goes.

A group of filmmakers hopes to get to the bottom of the mystery Saturday by digging up the concrete-covered landfill in search of up to a million discarded copies of "E.T. The Extraterrestrial" that the game's maker wanted to hide forever. The game and its contribution to the demise of Atari have been the source of fascination for video game enthusiasts for 30 years, and the search for the cartridges will be featured in an upcoming documentary about the biggest video game company of the early '80s.

"Bottom line, this is just trash. But there is a legend in it, we want to unlock that legend, that mystery," a spokeswoman for the public relations firm working on behalf of Xbox Entertainment Studios, one of the companies developing the film. The documentary is expected to be released later this year on Microsoft's Xbox game consoles.

Top Heal Care Companies To Own In Right Now

The event is expected to draw hundreds of video game enthusiasts, pop culture fans and self-described geeks to Alamogordo, a small town in southeastern New Mexico that is home to an Air Force base and White Sands National Monument. A pre-dig party is planned for Friday night with Atari games and free T-shirts for the first 250 people at the site.

Whether — and most importantly, why — Atari decided to bury thousands or millions of copies of the failed game is part of the urban legend and much speculation on Internet blog posts and forums.

Kristen Keller, a spokeswoman at Atari, said "nobody here has any idea what that's about." The company has no "corporate knowledge" about the Alamogordo burial. Atari has changed hands many times over the years, and Keller said, "We're just watching like everybody else." ! Atari currently manages about 200 classic titles such as Centipede and Asteroids. It was sold to a French company by Hasbro in 2001.

A New York Times article from Sept. 28, 1983, says 14 truckloads of discarded game cartridges and computer equipment were dumped on the site. An Atari spokesman quoted in the story said the games came from its plant in El Paso, Texas, some 80 miles south of Alamogordo.

Local news reports from the time said that the landfill employees were throwing cartridges there and running a bulldozer over them before covering them with dirt and trash.

The city of Alamogordo agreed to give the documentarians 250 cartridges or 10% of the cartridges found, whichever is greater, according to local media reports.

The "E.T." game is among the factors blamed for the decline of Atari and the collapse in the U.S. of a multi-million dollar video game industry that didn't bounce back for several years.

Tina Amini, deputy editor at gaming website Kotaku, says the game tanked because "it was practically broken." A recurring flaw, she said, was that the character of the game, the beloved extraterrestrial, would fall into traps that were almost impossible to escape and would appear constantly and unpredictably.

The company produced millions of cartridges, and although sales were not initially bad, the frustrating gameplay prompted an immense amount of returns. "They had produced so many cartridges that were unsold that even if the game was insanely successful I doubt they'd be able to keep up," Amini says.

Joe Lewandowski, who became manager of the 300-acre landfill a few months after the cartridge dump and has been a consultant for the documentarians, told The Associated Press that they used old photographs and dug exploratory wells to find the actual burial site. A spokeswoman for Xbox said they've dug to remove the upper layers of trash in preparation for Saturday's dig.

Lewandowski says he remembers how the cartridge dump was a monstrous fiasco for ! Atari, at! least from the perspective of a small desert town. The company, he says, brought truckloads from El Paso, where at the time scavenging was allowed in the city's landfills. "Here, they didn't allow scavenging. It was a small landfill, it had a guard."

The guard, however, was either away or unable to stop scores of teenagers from rummaging through the Atari waste and showing up in town trying to sell the discarded products and equipment from the backs of pickup trucks, Lewandowski, said. "That's when they decided to pour concrete over."

The incidents following the burial remained as part of Alamogordo's local folklore, he said. For him "E.T." the game did not stir any other memories than an awful game he once bought for his kid.

"I was busy merging two garbage companies together," he said. "I didn't have time for that."

Charles Schwab Is a Fast Growing Stock

The Charles Schwab Corporation (SCHW) is a savings and loan holding company. The company is engaged, through its subsidiaries, in securities brokerage, banking, money management, and financial advisory services. Its subsidiaries include Charles Schwab & Co. (a leading discount broker-dealer), Charles Schwab Investment Management (a mutual fund investment advisor) and Charles Schwab Bank.In this article, let's take a look at this brokerage firm and try to explain to investors the reasons this is an apparently appealing investment opportunity.The FocusThe company provides financial services to individuals and institutional clients through two segments: Investor Services and Institutional Services. The Investor Services segment provides retail brokerage and banking services to individual investors. The Institutional Services segment provides custodial, trading, and support services to independent investment advisors. The Institutional Services segment also provides retirement plan services, specialty brokerage services, and mutual fund clearing services. The company seeks to meet the financial services needs of investors, advisers and employers. It focuses on building client loyalty with the goal of attracting new clients and serving them. Additionally, Schwab´s strengths through shared core processes and technology advances which help create services that are scalable and consistent with the business.Interest Rates, Capital Structure and Debt-to-Capital RatioThe results are dependent on short-term interest rates, as 37% of its top line came from net interest income in the first quarter of 2014.The broker has been making significant efforts to become less dependent on interest rates, which we expect Federal Reserve will raise them in late 2014 or 2015. Also, the company´s plan is to reach a low-cost capital structure and targets a long-term debt-to-total financial capital ratio of less than 30%.Lucrative Derivatives Trading In 2011, the company acquired Compliance11 Inc. and optionsXpress Holdings! Inc., a leader in options and futures trading. The optionsXpress deal expands its options and futures reach, adding the retail options brokerage. This also has an impact on the company´s registered investment advisor (RIA) business. Schwab has completed a lot of takeovers since 1999, according to data compiled by Bloomberg.Analyst RecommendationThe firm is currently Zacks Rank # 2 – Buy, and it also has a longer-term recommendation of "Neutral". A Buy rating indicates that the stock, over the next 1 to 3 months, will perform at an annualized rate of 19.04%, which we think is very attractive. For investors looking for a Zacks Rank# 1–Strong Buy, Interactive Brokers Group, Inc. (IBKR), Investment Technology Group Inc. (ITG) and Piper Jaffray Companies (PJC) could be better options.Relative Valuation, Earnings and ROEIn terms of valuation, the stock sells at a trailing P/E of 35.3x, trading at a premium compared to the industry mean. Due to its revenue growth, Earnings per share (EPS) have increased in a by 60%in the most recent quarter compared to the same quarter a year ago. In the next graph we include the stock price because EPS often lead the stock price movement. As we can appreciate in the chart, the price performance was really good in the past year.Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has increased from the same quarter one year prior. This is a clear sign of strength within the company.Let´s compare the current ratio with the peer group in the next table:

Ticker	Company Name	ROE (%)
SCHW	Charles Schwab	10.32
IBKR	Interactive Brokers Group, Inc	5.23
ITG	Investment Techn! ology Gro! up Inc.	7.45
PJC	Piper Jaffray Companies	6.14
AMTD	TD Ameritrade Holding Corporation	14.44
ETFC	E*TRADE Financial Corporation	1.77
AI	Arlington Asset Investment Corp.	8.96

Charles Schwab has a current ratio of 10.32% which is higher than the ones registered by Interactive Brokers Group, Inc., Investment Technology Group Inc., Piper Jaffray Companies, E*TRADE Financial Corporation (ETFC) and Arlington Asset Investment Corp. (AI). For investors looking for a higher ROE, TD Ameritrade Holding Corporation (AMTD) is a good option.Final CommentAs outlined in this article, we think Schwab should be a good fit in investor´s portfolios. We expect the recent move to a flat commission schedule and free trades for many of its ETFs will sustain revenues' growth.I would recommend investors to consider adding the stock for their long-term portfolios. Hedge fund gurus have also been active in the company in the fourth quarter of 2013. Gurus like Murray Stahl (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Arnold Van Den Berg (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jim Chanos (Trades, Portfolio) and Frank Sands (Trades, Portfolio) have taken long positions on it.Disclosure: Victor Selva holds no position in any stocks mentioned.Also check out: Arnold Van Den Berg Undervalued Stocks Arnold Van Den Berg Top Growth Companies Arnold Van Den Berg High Yield stocks, and Stocks that Arnold Van Den Berg keeps buying Frank Sands Undervalued Stocks Frank Sands Top Growth Companies Frank Sands High Yield stocks, and Stocks that Frank Sands keeps buying

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FDA slaps rules on e-cigarettes, cigars

As electronic cigarettes soar in popularity, the U.S. government Thursday is proposing historic rules to ban their sale to minors and require warning labels as well as federal approval.

Three years after saying it would regulate e-cigarettes, the Food and Drug Administration is moving to control not only these battery-powered devices but also cigars, pipe tobacco, hookahs (water pipes) and dissolvable tobacco products. Currently, the FDA regulates cigarettes, roll-your-own tobacco and smokeless products such as snuff.

The proposed rules won't ban advertising unless the products make health-related claims nor will they ban the use of flavors such as chocolate or bubble gum, which public health officials say might attract children.

"This is an important moment for consumer protection," said FDA Commissioner Margaret Hamburg, noting tobacco remains "the leading cause of death and disease in this country." The rules will require manufacturers to report their ingredients to the FDA and obtain its approval. They also ban free tobacco samples and most vending-machine sales.

"Some of these regulations will be very restrictive," said Ray Story, founder of industry group TVECA (Tobacco Vapor Electronic Cigarette Association), who added he obtained his own pre-release copy of the rules. He said they could be costly for smaller businesses and slow the growth of a product that advocates say has helped many smokers kick the habit.

Still, Story said, consumers might benefit, because "it provides them a product that will be consistent." E-cigarettes contain varying ingredients and levels of nicotine that are heated into a vapor that users inhale in a practice known as "vaping." Most look like conventional cigarettes but some resemble everyday items such as pens and USB memory sticks.

The rules come as e-cigarette sales, buoyed by TV ads with Hollywood celebrities , have soared in recent year and debate has risen about whether the devices are more apt to lure kids toward tobacco! or help adults quit smoking.

An increasing number of states have cracked down by extending indoor smoking restrictions to e-cigarettes. Last month, U.S. poison centers reported a surge in illnesses linked to the liquid nicotine used in the devices.

While they don't contain many of the harmful chemicals of conventional cigarettes, the FDA found trace amounts of toxic and carcinogenic ingredients in several samples in late 2008 when the e-cigarette market was just beginning in the United States. It sought to regulate them as drug-delivery devices, but in 2010, a federal judge ruled it could only do so if they made therapeutic claims. So in April 2011, the agency said it would regulate them as tobacco products, because the nicotine is derived from tobacco leaves.

"It's taken more than three years to issue a proposed rule, which we think is inexcusable," said Vince Willmore of the Campaign for Tobacco-Free Kids, an anti-smoking group. "It's allowed a Wild West marketplace with irresponsible marketing and no control over the product." He says the FDA should quickly finalize the rules, which face a 75-day public comment period and further review.

The proposed rules walk a narrow path. They will require tobacco products that weren't on the market by Feb. 25, 2007 — a date set by a federal law — to apply for FDA review within 24 months after the rules are issued. The products can stay on the market pending FDA's review, says Mitch Zeller, director of FDA's Center for Tobacco Products, adding they can seek an exemption from additional reviews if minor changes are made.

Despite these requirements, the proposal doesn't contain the marketing restrictions sought by some critics that were almost sure to trigger litigation. Craig Weiss, CEO of NJoy, a top-selling e-cigarette, said he supports "reasonable regulation" but would "respond very forcefully to any attempt to limit my free speech right to promote my product."

Several dominant e-cigarette manufacturers, which now inclu! de the na! tion's three largest cigarette makers — Philip Morris, R.J. Reynolds and Lorillard — have embraced limited regulation such as a ban on sales to minors. Yet they've argued that their e-products shouldn't be regulated as tightly as conventional cigarettes — an approach the FDA appears to be taking.

The FDA said the rule aims to bolster product safety. It said since e-cigarettes have not been fully studied, consumers have no way to know how much nicotine or other chemicals they contain and whether they're safe or beneficial.

FDA's 20-year road to regulating tobacco:

August 1996: FDA issues rules to ban tobacco sales to minors and its advertising near schools or playgrounds

March 2000: U.S. Supreme Court, in 5-4 decision, rules that Congress did not give FDA such authority

December 2008: FDA, after detaining import shipments of e-cigarettes, declares they're unapproved drug delivery devices

April 2009: E-cigarette distributor Smoking Everywhere files suit against the FDA, joined a month later by Sottera (doing business as NJOY)

June 2009: Congress passes law granting FDA authority to regulate tobacco products

January 2010: U.S. District Court for the District of Columbia bans FDA from stopping e-cigarette imports

June 2010: FDA issues final rules to ban the sale of cigarettes and smokeless tobacco to minors and to restrict their marketing

December 2010: U.S. Court of Appeals for the D.C. Circuit, upholding lower court decision, rules e-cigarettes can be regulated as tobacco products but not as drugs/devices unless marketed for therapeutic purposes

April 2011: FDA says it intend to expand to its authority over tobacco products to include e-cigarettes

June 2011: FDA issues new graphic warning labels that will need to be placed on cigarette packs and ads by Sept. 2012

April 2014: FDA proposes rules to regulate e-cigarettes and cigars as tobacco products

Gannett Q1 revenue rises on Belo integration

Gannett Co., the parent of USA TODAY, said Wednesday first quarter revenue and operating income rose from a year ago following the acquisition of former competitor Belo, but quarterly net income fell as it incurred interest expenses related to the deal.

Reporting after its first full quarter of operating Belo's TV stations, Gannett said the net income attributable to the company for the three-months period ending March 30 declined 43% year-over-year to $59.1 million after accounting for $69.6 million in interest expense. But adjusted earnings per share of 47 cents beat analysts' estimates of 46 cents and were up from 37 cents a year ago.

Quarterly revenue for the McLean, Va.-based media company -- owner of 40 TV stations, 82 daily newspapers and a network of websites -- totaled $1.4 billion, a 13.4% gain from a year ago. Operating income rose 35% year-over-year to $204 million.

Shares of Gannett fell 0.33% Wednesday morning to $27.06.

The broadcasting division's revenue nearly doubled to $382.3 million as Belo's TV stations were integrated following the closing of the Belo deal in December.

"This was a terrific first quarter for Gannett, in which the fundamental changes we've been making to our business meaningfully impacted our top and bottom lines," said Gannett CEO Gracia Martore, in a statement. "An outstanding performance by our new broadcast stations fueled double-digit increases in both revenue and profitability in our Broadcast Segment."

Reflecting the continued sluggishness in the print business, publishing advertising revenues for Gannett -- still the company's largest source of revenue -- fell 4.8% from a year ago $501.3 million.

Circulation revenue for the publishing segment dipped 1.4% to $282 million.

The digital segment's revenue rose 2.8% to $179.7 million.

In recent years, Gannett has sought to diversify its business lines beyond newspapers and publishing, culminating in the acquisition of Belo for $1.5 billion. With the number of Gan! nett's TV stations now nearly doubled, the sharp rise in its first quarter broadcasting revenue was largely attributable to higher retransmission revenues.

Retransmission fees are paid by cable and satellite operators for the rights to include Gannett's TV stations in their TV lineup. Gannett's retransmission revenue for the quarter totaled $87.5 million, a 142% increase from a year ago.

Its NBC stations also generated about $41 million of advertising associated with the Winter Olympic Games during the quarter.

3 High-Yield Stocks on the Road Less Traveled

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One of the benefits of quantitative easing was that as bond yields cratered, it required me to hunt down other yield opportunities for both myself and for readers.

Not that I particularly enjoyed having to look elsewhere — but hey, it’s what you do for yield.

Still, the hunt has led me to some interesting discoveries, some of which involved creative or specialty lending firms, real estate investment trust hybrids, and closed-end funds I usually don’t look at.

None of those asset classes are your regular rank-and-file stocks, but then, neither are their dividend yields. So, let’s take a look at three of these high-yielding stocks, and the wrinkles that make them tick.

High-Yield Stocks: BlackRock Municipal Income Trust II (BLE)

BLE Dividend Yield: 7%

BlackRock Municipal Income Trust II (BLE) is the first of our high-yield stocks, and — wouldn’t you know it? — it’s not really even so much a stock as it is a closed-end fund.

A closed-end fund essentially is just a fund that initially raises capital via an initial public offering with a fixed number of shares, purchased as stock. However, rather than a share representing one particular company, it actually represents interest in an actively managed securities portfolio. So it's a bit like a mutual fund, but trades like a stock, rather than just settling on a price at the end of each business day.

This particular BlackRock closed-end fund invests at least 80% in investment-grade municipal bonds, with the other 20% permitted to be allocated towards lower-grade munis that are "judged to be of comparable quality by BlackRock." So you're relying on the managers of BLE stock to truly find market inefficiencies in those lower-rated munis, and not just trying to goose the yield of the fund.

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A few other details:

35% of the bonds are rated AA or higher and 94.5% have maturities greater than 4 years. 21.8% are tax-backed, 19% are transportation-related, 15% health-related, 14% are corporate-backed, and 13% are utility-related. The top three states represented in the portfolio are Texas, Illinois and California at 13.8%, 10.8% and 10.4%, respectively.

I would consider BLE stock a somewhat risky choice, but not as crazy risky a full-on junk bond portfolio. It's well-diversified, trades at $14 and certainly is a high-yield qualifier at roughly 7% annually.

High-Yield Stocks: Franklin Street Properties (FSP)

FSP Dividend Yield: 6.1%

Franklin Street Properties (FSP) belongs to another set of high-yield stocks — real estate investment trusts (or just REITs, for brevity’s sake).

Franklin Street invests in "institutional-quality" office properties with concentrations in Atlanta, Dallas, Denver, Houston and Minneapolis. FSP chooses central business district properties, as well as "urban infill" — a fancy name for repurposing real estate that didn't have any purpose.

A better way of putting it: Franklin Street is aimed at urban renewal. Still, I like a company that tackles a niche like this. There's risk here, however. If these urban renewals fail, then the company is stuck owning properties with few or no tenants.

But, broadening things a little bit: FSP also has operations involving property acquisitions and dispositions, leasing, development and asset management.

This high-yield stock trades at $12.33 and generates a 6.1% yield.

High-Yield Stocks: American Capital Senior Floating (ACSF)

ACSF Dividend Yield: 5.4%

Our last of the high-yield stocks is American Capital Senior Floating (ACSF). No, ACSF isn't a retirement boating community — it's a business development company. Get ready to yawn.

A business development company, or BDC, are publicly traded vehicles that, like closed-end funds, raise money via a public offering, then invest in various middle-market or early-stage companies. Like REITs, they must spin out 90% of net income to shareholders.

American Capital Senior Floating is different from many BDCs in that 20% to 30% of their investments are in the equity portions of collateralized debt obligations. Rather than take a position as the senior lienholder in an investment, it takes on an equity stake. Other lenders have higher claims on principal and interest, and therefore ACSF is granted a higher effective yield, somewhere in the 15% range.

ACSF stock is relatively new to the markets, so a clear dividend yield hasn't been established yet. However, based on the ignition payout of 18 cents per share, the running dividend yield is about 5.4%.

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As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at pdlcapital66@gmail.com and follow his tweets @ichabodscranium.

New York Attorney General to Subpoena Airbnb on Sublets

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Janine Wiedel Photolibrary/Alamy New York Attorney General Eric Schneiderman is set to subpoena online home-rental marketplace Airbnb seeking records to identify users who are illegally renting out apartments, the New York Post reported, citing sources. Nearly two-thirds of New York city apartments recently listed on Airbnb were illegal sublets, according to an affidavit from the state Attorney General's office, the newspaper said. The affidavit, which is expected to be filed in court Monday by the AG's office, shows 64 percent of Airbnb's 19,500-plus offerings for Jan. 31 cover an "entire apartment," the Post said. More than 200 of the offerings came from just five "hosts," suggesting third parties were renting out pads on behalf of their owners, the newspaper said. Schneiderman opened an investigation last year into whether hosts on Airbnb, a Silicon Valley venture capital-backed website that lets people put up spare rooms or couches for rent, are breaking a 2010 law that prohibits renters from subletting their room for less than 30 days. Schneiderman's office first demanded in August that the company turn over records of all Airbnb hosts in New York State. State prosecutors issued a subpoena in October after failing to obtain the records, despite several rounds of negotiations with Airbnb lawyers. Airbnb then went to court to block the subpoena.

No Monthly Jobs Report? What Will the Talking Heads Do?

J. Scott Applewhite/APPresident Barack Obama appears on a video monitor as he discusses jobs and the economy during 2010 event hosted by CNBC. WASHINGTON -- The latest victims of the government's partial shutdown: policy wonks, politicians and TV talking heads who are losing their monthly opportunity to dissect the jobs report issued by the Bureau of Labor Statistics. The ritual unfolds every month: The jobs report comes out, and Wall Street panics or exults. Political advocates spin. And economic analysts crowd cable-TV to offer us their insights. It happens the first Friday of the month at 8:30 a.m. Eastern time. Except this Friday. The government's partial shutdown means the September jobs report is being postponed. The workers who produce it aren't deemed "essential," which is why they're among the 800,000 federal employees being furloughed. They aren't doctors treating wounded soldiers at military hospitals or air traffic controllers ensuring that planes take off and land safely. They're statisticians. Yet for a subculture of Americans whose professional lives are tied to the monthly jobs report, its absence may be disorienting. "Economists and journalists will have some withdrawal pains," suggests Mark Zandi, chief economist at Moody's Analytics and a fixture on cable-TV gabfests after the jobs reports are released. Diane Swonk, chief economist at Mesirow Financial and another regular television presence on the morning of the jobs reports, jokes that she won't have to get up so early Friday. Yet she'll feel the loss. The jobs report is a "flashlight into the dense forest of global economic information," Swonk says. "We've turned the flashlight off." Wall Street traders whose computers are normally primed to spring into action milliseconds after the report is issued will have to manage without it. "Most investors I talk to are taking a wait-and-see attitude," says Jack Ablin, chief investment officer at BMO Private Bank. "I don't think anybody is crying in their beer." Wall Street bases its buy-and-sell decisions on countless data -- from economic growth in the United States and abroad to corporate profits, manufacturing output and home sales. But the jobs report tends to occupy center stage. Job growth drives consumer spending, which fuels most of the U.S. economy. "The economic data everybody looks at all month long leads up to a day like Friday," says Jonathan D. Corpina, senior managing partner at Meridian Equity Partners. "Without having that core ingredient to your economic calendar, the dish really isn't going to be done." So can stock analysts just take Friday off? Joel Naroff of Naroff Economic Advisors in Holland, Pa., mused, half-seriously, that he might as well head to his weekend place on the Jersey shore. "Employment Fridays are always an incredibly busy time for me," Naroff says. "This one is going to be strangely quiet." What will the cable financial news outlets, from CNBC to Bloomberg to Fox Business News, do Friday morning with no jobs report? CNBC issued a statement saying it's "still planning a big show on Friday" focused on the uncertainty from the shutdown and the "incomplete picture on where the jobs market currently stands." Friday's report was expected to show that the economy added 180,000 jobs in September, slightly more than the modest 169,000 in August. The unemployment rate was expected to remain at a still-high 7.3 percent. Without the jobs data, it isn't only Wall Street that will have to act without its usual information. The Federal Reserve will almost surely put off any move to slow its bond purchases when it meets later this month. The purchases have been designed to keep long-term borrowing rates low. A resolution of the shutdown would allow the government to eventually release the September jobs report. But Naroff is already worried about the October jobs report, set for release in early November. A prolonged shutdown would bar the government from doing the necessary surveys on hiring and employment. "Do they do it a week late?" Naroff says. "Do they just not do it? I don't know." Zandi says he'll grow alarmed only if a prolonged shutdown shuts off the flow of economic data for weeks. No one would know precisely how the economy is reacting to Washington's political standoff. "It's like flying a plane with few instruments." Zandi says. "You're able to do it for a while. But if you hit a storm, there's a good chance you'll crash." Still, important as the jobs report is, some find its coverage on cable TV to be overkill. Barry Ritholtz, chief investment officer at Ritholtz Wealth Management, calls it "the single most overanalyzed, overwrought, overemphasized data point in finance." Ritholtz notes that each month's job figure is later revised twice, sometimes sharply. "It's only a function of financial television and radio that have time to fill." Regardless, Zandi plans to be exactly where he is on every other first Friday of the month: speaking on a panel of experts on CNBC. "There's always something to talk about," he says.

Does the Fed Have Street Cred?

The biggest challenge for the Federal Reserve over the next two years is “to manage market expectations for interest rates,” according to a report issued by Merrill Lynch on Thursday. “It is safe to say that many bond investors are confused and frustrated by the Fed communication,” it noted.

What’s behind the confusion and what exactly is needed to guide the markets in a rising-rate environment after last summer’s tapering drama? The Merrill experts lay out exactly what happened and what needs to change.    

They also draw a clear conclusion on the level of clarity the Fed has been sharing of late, which should be good news for investors and advisors seeking less volatility in both the fixed-income and equity markets.

“The Fed has had a tough time communicating its policy intentions,” Ethan Harris and several other economists explained. “At the start of last summer, tapering talk caused a sharp sell-off in the bond market. A few months later, the Fed surprised the markets by not tapering.”

In recent months, there’s been confusion around how to interpret the “dot plot,” which shows forecasts by various members of the Fed Open Market Committee of how high the federal funds rate will be at different times in the future, and whether there is a “six-month rule” for interest-rate hikes, the economists say.

The confusion, the Merrill experts say, stems from the “uncharted territory” of both a weak recovery and the use of “unconventional policy.”

The Fed also suffers from a “very awkward communication structure.”

In contrast, Norway’s central bank, which has used forward guidance for a decade, employs a simple and transparent process. “With just seven members, the committee is small enough to be efficient and big enough to get a diversity of views,” the report explained.

“These published forecasts, including the interest-rate projection, are derived from a consistent set of underlying assumptions,” it added. “By contrast, the Fed has a very awkward structure.”

Indeed. The FOMC has 19 members and 11 regional presidents, including four voting positions that rotate each year. It also has 13 different research groups.

“The official forecasts are not derived from a careful discussion with consistent assumptions, but are delivered by spreadsheet without a systematic discussion,” the economists explained.

The group relied on different and inconsistent means of communication.

“In our view, all of this means lots of head fakes for the markets and headaches for investors,” the Merrill analysts said.

What makes for good guidance?  

Olystein Olsen, governor of the Norges Bank, says first and foremost, economic agents must indeed understand the “announced reaction pattern.”

Second, the conditionality of the guidance must be very clear and easily understood.

Third, the Fed’s guidance must affect agent “expectations.”

Fed Report Card

Merrill Lynch economists using these standards conclude the Fed, in fact, has done a good job at guiding agents’ expectations.

Over the last three business cycles, the market consistently mispriced the Fed, expecting rate hikes much too early. But then, in 2011, the Fed announced “calendar guidance.”

In general, the markets looked for rate hikes around the corner, sometimes three years too early.

However, recent expectations have moved out beyond a year. The market is now pricing in about 100 basis points of rate hikes in the first year of tightening and less in the second year, the report states. “And yet in the past two cycles, a year and a half before the first rate hike, the markets were pricing in 140-150 bp in rate hikes in the first year of the tightening.

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“Clearly, the Fed has been quite effective, at least so far, in convincing the markets that the tightening cycle will be much slower and later than normal."

As for the conditional nature of the Fed’s promises, the Fed seems to be succeeding on this measure as well. “In particular, the markets seem to have correctly interpreted the Fed’s unemployment rate thresholds,” the economists say. 

As for the Fed's impact on agent expectations, while there will be some short-term deviations, Yellen and her supporters should “continue to jawbone the markets back in line,” the Merrill team concludes. The Fed is expected “to likely lean on low inflation to justify a slow exit.”

Its overall conclusion is even clearer: “While there have been plenty of bumps along the road, the Fed’s forward guidance has worked quite well in anchoring expectations. We expect the Fed to defend their exit strategy rigorously and effectively against likely challenges in the years ahead.”

Schlumberger Slips On Mixed Q1

Schlumberger (SLB) was down in Thursday afternoon trading after a mixed first quarter.

The oilfield giant said first quarter earnings were $1.59 billion, or $1.21 a share, up from 94 cents in the year-ago period and one penny ahead of estimates. Revenue rose 6.3% to $11.24 billion, just below the $11.49 billion analysts were expecting.

The Middle East and Asia a was the strongest region, with sales up 19%, followed by North America, with 12%. Revenue edged ahead by 0.6% in Europe and Africa, while Latin America saw a 7.7% decline.

Stephens analyst Michael Marino reiterated an Overweight rating on the stock: "While SLB’s geographically diversified footprint will likely limit exposure to the accelerating margin trends in North America this year, global oilfield spending continues to grow at a modest pace. Overall, we continue to see slow and steady revenue growth for the Company and solid incremental margins on higher deepwater mix, overall efficiency gains and potential pricing gains in North America."

FBR Capital Markets' Thomas Curran and Juan Avendano reiterated their Outperform rating on the stock, noting the company's share repurchases and reiteration of gudiance:

Reveals several awards, confirming it claimed lion’s share of Pemex’s Mega-Tenders. In (1) Mexico, SLB officially announced that it won the largest combined award in Pemex’s recent Mega-Tender round: three multi-year IPM contracts worth, in aggregate, over $1.9B in revenues or nearly 50% of the spoils; (2) Norway, the Company inked a 5-year (plus two option periods of one year) IPM contract, of undisclosed value, with Det norske oljeselkap ASA for exploration drilling and development of the Ivar Aasen field in northern North Sea; (3) Australia, SLB completions signed a $40M contract with INPEX covering the upper and intermediate completions for its first 20 wells at the offshore Ichthys field; and (4) Brazil, SLB artificial lift won a 5-year, $50M award from Petrobras for the provision, installation, and monitoring of ESPs on 6 wells at the offshore Parque Das Baleais field.

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Global customer spending (i.e. upstream capex) expectations unchanged. As a reminder, SLB lays out the macro view from the masthead for the rest of the sector. CEO Paal Kibsgaard remarked “we continue to believe that…well-related spend will increase north of 6% in 2014, and that spend growth rates will be relatively evenly split between the international and North American markets, driven by the independent and national oil companies”.

Fellow oilfield services company Baker Hughes (BHI) also reported today.

Investors cheer India election's reform potential

HONG KONG (CNNMoney) Indian markets are riding high as investors bet that an election and new administration will cure some of the country's economic ills.

Mumbai's benchmark Sensex index has trounced its Asian peers in recent months, hitting a record high last week and gaining 7% since the start of the year. The rupee has strengthened too, clawing its way back from a dismal performance in 2013.

Much of the optimism hinges on forecasts that India's 815 million voters will make Bharatiya Janata Party candidate Narendra Modi the next prime minister.

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Victory for a Modi-led coalition would end the Congress Party's dominance, and create an opening for a new government to implement economic reforms.

Analysts say India would benefit greatly from changes to its tax code, a reduction in excessive bureaucracy and more efficient agricultural policies. Momentum on these long-promised reforms stalled under the leadership of the Congress Party.

India's potential for growth was once mentioned in the same breath as that of China. But the world's second most populous nation and biggest democracy has failed to deliver and its economy is just a fifth the size of its Asian rival.

Economic growth has fallen below 5% in recent quarters, some of the lowest levels in years. The currency has lost more than a third of its value since 2011.

Observers don't expect much improvement this year, a troubling sign for one of the world's top 10 economies.

Modi has presented himself as a candidate in the mold of a CEO, campaigning on his economic record as head of Gujarat state. Investors are hoping that he will be able to conjure some of the same magic on a bigger stage.

Related story: Trial by fire for India's new central banker

But there are plenty of arguments for taking a more cautious view before the election concludes in the middle of May.

India's mammoth exercise in democracy is notoriously difficult to forecast, and polling data is thin. Even if the BJP does well in the vote tally, the party's ability to govern could be hamstrung by its eventual coalition partners.

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In addition, the BJP may prove to be less enthusiastic about economic reforms than some observers imagine.

Eurasia Group analysts wrote recently that they expect only "piecemeal improvements," noting that the BJP is not resolutely free-market oriented. Instead, they said, the BJP should be characterized primarily as a nationalist party.

The election will also do little to change India's fractious legislative process, which can even trip up parties with plenty of political capital to burn.

"We continue to believe that the new government's potential accomplishments will be substantially more modest than current market expectations," the Eurasia Group analysts said.

Related story: Investors dip a toe back in emerging markets

Many observers have also expressed concern over Modi's association with Hindu nationalist causes -- a potentially destabilizing agenda.

Much of the criticism centers on Modi's handling of riots between Muslims and Hindus in 2002 that resulted in the deaths of 2,000 people. Modi was accused of not responding quickly or adequately to the tumult, but he has denied any responsibility.

Some are not convinced. The Economist won't back Modi, saying the candidate has stonewalled and refused to explain his role in the violence.

Should Modi choose to pursue a controversial agenda in office, investor sentiment could sour quickly.

What's the Best Farmland Stock? FPI, LAND, ALCO & LMNR

Last Friday, small cap Farmland Partners Inc (NYSEMKT: FPI) had an IPO to join Gladstone Land Corp (NASDAQ: LAND), Alico, Inc (NASDAQ: ALCO) and Limoneira Company (NASDAQ: LMNR) as the latest option for retail investors seeking a way to invest in American farmland. After all, there is that old quote attributed to Mark Twain: "Buy land, they're not making it anymore." Moreover, February Wall Street Journal article noted that From 2009 to mid-2013, average prices for agricultural land in the US rose by half while in Iowa, Nebraska and some other Midwest farm states, prices more than doubled. However, the same article noted that there is mounting evidence that the farmland boom is fizzling out as farmland prices in Iowa fell 3% over the second half of last year and those in Nebraska fell 1%. The good news though is that today's agricultural sector looks markedly different than it did during the last farmland bust back in the early 1980s while Greyson Colvin, the managing partner at investment manager Colvin & Co. (which owns about 7,000 acres of farmland), was quoted as saying: "We think this next 12 months is going to be the best window we've had in the past five years [to invest in farmland]."

With that in mind, here is a closer look at four farmland stocks for investors:

Farmland Partners Inc. A small cap REIT, Farmland Partners owns and seeks to acquire high-quality primary row crop farmland located in agricultural markets throughout North America with the substantial majority of the farms in its initial portfolio devoted to primary row crops, such as corn and soybeans, as the company believes primary row crop farmland is likely to provide attractive risk-adjusted returns over time through a combination of stable rental income generation and value appreciation. Upon completion of a series of formation transactions, Farmland Partners' initial portfolio will be comprised of 38 farms with approximately 7,300 total acres, including 33 farms in Illinois, four farms in Nebraska and one farm in Colorado plus the initial portfolio will include three grain storage facilities. Farmland Partners priced its IPO of 3,800,000 shares at a public offering price of $14.00 per share to raise $49.5 million ($56.9 million if the underwriters exercise their over-allotment option in full) after deducting underwriting discounts and commissions with shares down at $12.98. On Tuesday, Farmland Partners rose 0.76% to $13.20 (FPI has a three day trading range of $12.50 to $13.76 a share) for a market cap of $64.24 million.

Gladstone Land Corp. The owner of farmland in Arizona, California, Florida, Oregon and Michigan with an appraised value over $113 million, small cap Gladstone Land Corp is a REIT that acquires farmland to rent to corporate and independent farmers on a triple-net lease basis, an arrangement under which the farmer maintains the property while paying rent to the company. The company's goal is to build a premier farmland real estate company focused on ownership of high quality farms and farm-related properties that are leased on a triple-net basis lease to good tenants. In late February, Gladstone Land Corp reported earnings with the CEO commenting:

"Our first year as a public company was a good one, but the expenses associated with our first year as a public company impacted our earnings.  However, we are now in a position to grow.  The fourth quarter ended December 31 showed an increase in revenues from our farm acquisitions. To become a REIT, we were required to pay out in 2013 all the earnings and profits accumulated from prior years.  We paid out total distributions in 2013 of $1.49 per share, of which $1.47 related to prior years' earnings and profits."

He added:

"We believe that investing in farmland is more of an asset appreciation investment than an income investment.  We expect farmland values to increase in value faster than inflation."

JMP Securities lowered its price target after earning but continues to see the stock as an effective inflation hedge as well as a quality play for long-term capital appreciation. Gladstone Land Corp has a forward P/E of 45 along with a forward dividend of $0.36 for a 2.8% dividend yield. On Tuesday, Gladstone Land Corp rose 0.46% to $13.05 (LAND has a 52 week trading range of $11.75 to $18.74  a share) for a market cap of $85.22 million plus the stock is down 19% since the start of the year, down 23.2% over the past year and down 13% since February 2013.

Alico, Inc. A Florida-based agribusiness and land management company, small cap Alico, Inc's principle business lines include citrus groves, improved farmland (including sugar cane, cattle ranching and conservation) and other operations (which include rock mining). Alico, Inc is one of the largest private landowners in Florida - owning 130,800 acres in six counties (Alachua, Collier, Glades, Hendry, Lee and Polk) plus it's a leading citrus grower with 11,000 producing acres. In early February, Alico, Inc reported its fiscal first quarter earnings and it was noted that agricultural operations are seasonal in nature with the second and third quarters generally producing the majority of annual revenue while the first and fourth quarters produce less revenue. It should also be noted that last October, two New York-based agricultural companies spent $137.8 million to purchase the shares of Alico Inc held by the heirs of Ben Hill Griffin Jr (the Griffin clan includes prominent Florida political figures including his's granddaughter Katherine Harris, who was secretary of state during the 2000 presidential election recount). Alico, Inc has a trailing P/E of 14.38 and a forward P/E of 33.09 along with a forward dividend of $0.24 for a 0.70% dividend yield. On Tuesday, Alico, Inc fell 2.42% to $35.08 (ALCO has a 52 week trading range of $34.22 to $47.60 a share) for a market cap of $257.85 million plus the stock is down 9.84% since the start of the year, down 18.3% over the past year and up 35.2% over the past five years.

Limoneira Company. Founded in Ventura County, California in 1893, small cap Limoneira Company has nearly 11,000 acres of agricultural production plus its one of the largest providers of lemons and avocados in the United States. In addition to agricultural investments, commercial and residential income producing and for-sale properties round out the company's portfolio. In early March, Limoneira Company reported fiscal first quarter 2014 earnings with revenues coming in at $25.9 million verses $17.4 million as agribusiness revenue came in at $24.7 million verses $16.3 million primarily due to higher lemon revenue. Net loss applicable to common stock, after preferred dividends, came in at $1.3 million verses $3.2 million. The CEO noted:

"While our results reflect the anticipated seasonality of our agribusiness in the quarter, we achieved strong year-over-year revenue growth and operating results, primarily driven by higher lemon sales. Our acquisition of Associated Citrus Packers, Inc mitigated a portion of the seasonality of our business contributing approximately $2.0 million of operating income for the quarter and underscores our ability to successfully integrate acquired orchards into our operations."

He also commented:

"Lastly, even with the current drought in California, we believe our extensive water resources including water rights, usage rights and pumping rights associated with our property provide adequate supplies of water for our agribusiness as well as our real estate development and rental operations."

Limoneira Company has a trailing P/E of 44.91 and a forward P/E of 49.09 along with a forward dividend of $0.15 for a 0.70% dividend yield. On Tuesday, Limoneira Company rose 0.23% to $21.60 (LMNR has a 52 week trading range of $17.19 to $27.41 a share) for a market cap of $303.49 million plus the stock is down 19% since the start of the year, up 12.5% over the past year and up 6.7% since June 2010.

Finally, here is a look at the long term performance of small cap farmland stocks Farmland Partners, Gladstone Land Corp, Alico and Limoneira Company:

As you can see from the above performance chart, small cap farmland stocks have had a bit of a mixed performance when it comes to capital gains and appreciation – meaning investors will need to look more closely at their dividends or income producing abilities.

5 Rocket Stocks for a Tumbling Market

BALTIMORE (Stockpickr) -- Stocks took a tumble last week, as the S&P 500 fell 2.65% between Monday's open and Friday's close. All told, it was the worst single week for stocks going back to the summer of 2012.

>>5 Stocks Poised for Breakouts

That's more of a commentary on the last two years' price action than it is on the last week's price action, however. U.S. equities have gone straight up with very little volatility, which just makes every move lower all the more pronounced.

Zoom out to the bigger picture, and there's no reason to think that we're seeing anything other than another healthy correction. In fact, it even looks a lot less abrupt than the one that sent investors into panic mode back in January. There's still some room to the downside before bulls need to start worrying. Keep the context in mind: We're less than 5% away from all-time highs in the S&P 500 as I write this morning.

So to make the most of that market disconnect, we're turning to a new set of Rocket Stocks worth buying this week.

>>5 Big Trades to Survive a Roller Coaster Market

For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 244 weeks, our weekly list of five plays has outperformed the S&P 500 by 80.51%.

Without further ado, here's a look at this week's Rocket Stocks.

Apple

First up is Apple (AAPL), a name that's been absent from our Rocket Stocks list for a while now. Even though tech names have been getting hit harder than most over the course of this correction, Apple's complete lack of momentum during 2013 has helped to spare it from getting sold off. So why buy Apple here?

Apple doesn't need much of an introduction. The firm's offerings include the iPhone, iPad tablet and Mac computer line. It's also the world's largest seller of digital music and media through its iTunes store. The biggest detractor for AAPL right now is the fact that the most recent of those flagship products was released four years ago. Investors are biting at the bit for a new "game changer," and CEO Tim Cook has indicated that Apple will be entering new segments in 2014. Let the speculation machine have at it.

But speculation over Apple's next "killer app" isn't the reason to buy this stock. The valuation is. Apple trades for a measly 9.3 times earnings ex-cash, a multiple that's more fitting for a utility stock than the biggest tech name on earth. At current share prices, the firm could pay for 30% of its outstanding shares with cash on hand.

Earnings next week could be a big catalyst for upside in Apple, but investors should expect the firm's WWDC event in early June to be a bigger one.

EOG Resources

Against all odds, 2014 has been a solid year for shares of EOG Resources (EOG). While the S&P 500 index is down 1.8% since the calendar flipped over to January, EOG has actually managed to rally 17.5% over that same stretch. That's on top of a strong 2013 for investors in this oil and gas exploration and production firm. At the end of last year, EOG boasted proven reserves of 2.2 billion barrels of oil equivalent, 94% of which were located in the U.S.

EOG's positioning as a pure-play E&P stock is attractive. During a time of prolonged triple-digit oil prices and tightening refining margins, EOG has been able to avoid the mess by not owning downstream assets in the first place. The result is net profit margins that consistently hit the mid teens. Recent volatility in natural gas has been a boon to EOG's profitability -- approximately 45% of the firm's production is made up of natgas.

EOG is an expert in unconventional drilling situations, which means that the firm is able to unlock profits that would typically go to specialist oil field servicers -- or be left in the ground. As a result, the firm can buy up cheap projects that are no longer profitable for rivals, and wring cash out of them.

With rising analyst sentiment in shares this week, we're betting on this Rocket Stock.

Texas Instruments

This year hasn't been quite as breakneck for shares of semiconductor giant Texas Instruments (TXN), but this $49 billion analog chipmaker has at least managed to keep its price performance above where it ended 2013. That's more than most companies can say right now.

Even though Texas Instruments is best known to millions of school kids as a calculator maker, consumer calculators only contribute around 5% of sales. The other 95% of revenues are earned in the semiconductor business; TXN is the world's largest maker of analog chips. Analog chips are used to process analog signals (like the human voice) and turn them into digital ones. As a result, TXN has a big role supplying components to the high-demand mobile phone market.

The acquisition of National Semiconductor effectively doubled down TXN's bet on the analog chip business. It also gave the firm huge manufacturing capacity that few rivals can match. The semiconductor business is incredibly cyclical, and the long-term rut that chipmakers have been in for the last several years is finally giving way to increased demand and profitability. That makes Texas Instruments a good low-volatility way to play the trend.

Becton Dickinson

Health care giant Becton Dickinson (BDX) tips the scales as the world's largest medical supply company. The firm manufactures surgical instruments such as needles, syringes and scalpels and distributes them to facilities all over the world. That huge scale gives Becton some big competitive advantages as demographic shifts and policy changes ramp up demand for the firm's medical instruments.

Becton's offerings may be a lot of things, but they're not particularly exciting -- and neither are the margins. To change that, the firm has been at work for years to grow its complex high-margin medical equipment (like oncology and pathology diagnostic devices) into a bigger piece of the revenue pie. Together, those two parts of BDX's work very well together: the instruments business pays the bills and provides downside protection from a bumpy economy, while high-tech devices hold the promise for revenue growth and margin expansion.

Financially, Becton is in solid shape. The firm carries just $1.4 billion in net debt on its balance sheet, a very small amount of leverage for a firm of BDX's scale. With more than $2.5 billion in cash on hand, the firm has more than enough wherewithal to handle any economic hiccups along the way. It also has a long history of paying a solid dividend payout; currently that adds up to a 2% dividend yield.

Johnson & Johnson

Last up is Johnson & Johnson (JNJ), a bigger health care name with an even bigger reach. JNJ is the world's biggest and broadest health care company, with more than $71 billion in annual revenues spread out across pharmaceuticals, medical devices, and consumer products. That diversification makes JNJ the total package when it comes to healthcare sector exposure.

On the consumer side, Johnson & Johnson owns a valuable portfolio of brands that includes names like Band-Aid, Tylenol, Neutrogena and Acuvue. But it's the non-consumer side of the business -- pharmaceuticals and medical devices -- that provide the majority of JNJ's sales. The firm made a big bet on the medical device space with the $20.2 billion acquisition of Synthes in 2012, a move that should expand the high-margin devices business as a share of JNJ's total revenue in the next few years.

JNJ's businesses throw off substantial cash. Even after deploying considerable cash for the Synthes acquisition, the firm currently carries a net cash position of $11 billion. Johnson & Johnson's 2.7% dividend yield makes it a particularly attractive name in this environment, where rate-sensitive stocks are benefitting on fears of a prolonged market drop. So, with rising analyst sentiment in JNJ this week, we're betting on shares.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Ways to Profit From a Crowded Short Trade

>>5 Stocks to Sell Before It's Too Late

>>5 Stocks Under $10 Set to Soar

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author was long AAPL.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Dow Beats Initial June Swoon

Though it's had its share of ups and downs this morning, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has kept its feet firmly in positive territory. Some worry that the dreaded "June Swoon" may take hold, since the markets have historically underperformed in the month of June, to the tune of a 0.1% decline. And though some discouraging economic data started the morning, some of the index's component stocks are shouldering the burden and leading the way higher. Though its rise has been modest so far in trading, the Dow is up 32 points as of 11:30 a.m. EDT.

Manufacturing a recovery
This morning's unexpected report of a contracting manufacturing market sent a ripple through the market, leading to the Dow's biggest drop in trading. The contraction in activity is the first the economy has seen in six months, with the index of national factory activity falling to 49.0. While analysts had expected the index to stay flat with April's 50.7, the more worrying issue is a reading below 50, the level at which expansion reverts to contraction. The last time the index was below 50 was in November 2012, just after Hurricane Sandy.

Another report this morning showed a small increase in construction spending, though the 0.4% rise was only half of estimates. Business spending helped offset declines in private homes and the public sector. While governmental cutbacks have hurt this statistic, private nonresidential building is on the rise, as well as utilities construction. Construction of residential properties increased over the month, though improvements in private homes slowed that segment's growth.

Leaders and laggards
Merck (NYSE: MRK  ) is at the top of the class this morning with a 5.19% gain following some extremely encouraging news about its latest experimental drug, lambrolizumab. Aimed at unleashing the powers of a patient's own immune system, the drug disables the immune system cells' prevention method that curbs its attack on cancer cells -- a protein called the programmed death 1 receptor, or PD-1. Merck's drug has shown a 38% rate in tumor reduction in patients with advanced melanoma, and up to 52% in patients who received the highest dosage of the drug. Though the patients have not undergone the trial for a long enough period yet, the results are attracting attention for matching the current treatments from two Bristol-Meyers Squibb (NYSE: BMS  ) drugs, Yervoy and nivolumab, with potentially milder side effects. The news is great for Merck investors, as the company has only played a small part in oncology treatments to date.

Banks are headed lower this morning, with Bank of America (NYSE: BAC  ) leading the laggards with a 3.07% drop this morning. Today is the big day for B of A as it heads back into the courtroom for a hearing on its $8.5 billion settlement with investors. The court will determine if the settlement is approved or rejected. If it's rejected, the bank could potentially be on the hook for $60 billion. Though the settlement is supported by investors like BlackRock and Goldman Sachs, opposition is coming from AIG (NYSE: AIG  ) , which has stated that the settlement is too small for the outstanding claims against the bank. AIG has a separate case against Bank of America in the courts, with a $7 billion claim based on losses from insured mortgage-backed securities.

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

3 Reasons to Buy Target Stock

The retail space has never been more competitive and pressure on brick-and-mortar retailers has never been higher. In the first quarter, Target (NYSE: TGT  ) reported a 0.6% decline in same-store sales and its biggest competitor Wal-Mart's (NYSE: WMT  )  same-store sales fell 1.2%. Meanwhile, Amazon.com (NASDAQ: AMZN  ) grew revenue 22%, showing that online retail is taking significant share.

But it's not time to sell all brick-and-mortar retailers, and Target is one company with a few advantages over the competition. Here are the three biggest reasons to buy its stock right now.

Online tax bill
The bill floating through Congress that would allow for the collection of online sales tax could be a boon for a company like Target. First, large purchases like TVs may move back into brick-and-mortar stores from online shops, where you can save sales tax. Smaller items, where the sales tax wouldn't be so onerous, may still make sense to make with a company like Amazon because of the free shipping available to Prime members.

The bigger advantage of an online sales tax bill may be in Target's size and infrastructure to pay state and local taxes already. If online retail shops are forced to pay taxes to thousands of different jurisdictions, it would be a nightmare for a small retail shop but would require little change for Target.

If Target can merge online shopping and local pickup -- like Wal-Mart is testing -- it could give the company another advantage of online-only retail.

Classy consumers
The payroll tax increase that took effect on Jan. 1 has hit consumer spending but its impact is felt more by low-income shoppers than those on the high end. As a discount retailer, Target gets its fair share of low-income shoppers but this is Wal-Mart's bread and butter.

With designer clothes and stylish products, Target is going after a slightly more affluent consumer than Wal-Mart, which makes it a little less susceptible to the cost-conscious consumer.

We sell groceries, too
Most importantly, even if online shopping continues to take share in retail, there are products that will never sell well online. Products like toilet paper and groceries are Target specialties and they will keep the company in business even as Amazon continues to grow like a weed.

Both Target and Wal-Mart have really become the new grocery store, serving up food and all of the other staples consumers need. We're a long way from home delivery for bananas and toilet paper so Target will continue to play a key role in retail.

Target stock is a steady retail play
The retail space is tough for brick-and-mortar companies, but Target offers services many online shops won't be able to match. If sales taxes hit online sales in the future, that's another advantage for the company.

Target stock isn't cheap at 15 times earnings, but it's about as steady a retailer as you can get right now and I think that will help it outperform the market.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Top Railroad Stocks To Buy Right Now

When it comes to investing, it's all about valuation and timing. If you can find undervalued assets at the right time, you can make an absolute fortune.

Some assets are priceless because they are not easily replaced and offer few viable alternatives. Think about fine art, rare diamonds or vintage gold coins.

Now think about the irreplaceable roads, airports and railroads we use every day. How valuable are those assets?

One of the concerns the United States is currently facing is the growing need for improved infrastructure. It is a $2 trillion crisis no one is talking about. So when I think about long-term investments, infrastructure seems to be a safe bet.

 

Infrastructure businesses often generate consistent, growing long-term cash flows. This is because the demand for the everyday services they provide exists in virtually every economic cycle. Also, those companies are often in sectors where there are high barriers to entry. They often own high-value physical assets that are difficult to replicate.

Top Railroad Stocks To Buy Right Now: New Source Energy Partners LP (NSLP)

New Source Energy Partners L.P., incorporated on October 2, 2012, is engaged in the acquiring oil and natural gas properties in the United States. The Company�� properties consist of non-operated working interests in the Misener-Hunton formation (the Hunton Formation), a conventional resource reservoir located in east-central Oklahoma. As of June 30, 2012, of which approximately 58% were classified as proved developed reserves and of which approximately 76.4% were comprised of oil and natural gas liquids. As of June 30, 2012, the Company had 89,116 gross (31,554 net) acres, of which 6,796 gross (2,323 net) acres were undeveloped. As of June 30, 2012, the Company had 127 gross (28.5 net) proved undeveloped drilling locations, of which 66 gross (20.7 net) were infill drilling locations. In June 2013, New Source Energy Partners LP announced that it has acquired additional oil and natural gas properties from New Source Energy Corporation. In November 2013, New Source Energy Partners LP acquired MCE LP.

The Company�� properties are located in the Golden Lane field within the Hunton Formation of east-central Oklahoma and consist of mature, legacy oil and natural gas reservoirs. The Company�� properties consist of non-operated working interests in producing and undeveloped leasehold acreage, including 215 gross (82.4 net) producing wells with working interests ranging from 21% to 87% (38.3% weighted average); and 127 gross (28.5 net) proved undeveloped drilling locations with working interests ranging from 1% to 84% (22.4% weighted average). As of June 30, 2012, the Company had 89,116 gross (31,554 net) acres in the Golden Lane field.

Advisors' Opinion:

• [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
  
  The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
  
  The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut.  CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
  
  But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
  
  SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M
• [By Robert Rapier]

  New Source Energy Partners (NYSE: NSLP) debuted in February 2013 as the year’s first initial public offering of an upstream master limited partnership, with an initial enterprise value (EV) of $186 million. The partnership is engaged in the development and production of liquids-rich conventional resource reservoirs in east-central Oklahoma.

• [By Lee Jackson]

  New Source Energy Partner L.P. (NYSE: NSLP) is definitely a name for investors interested in yield. While the company faced some issues in the second quarter due to flooding in some of its drilling areas, production is back to normal and management is very positive for the remainder of 2013. Oppenheimer has a $23 price objective, while the consensus is at $24. Investors are paid a stellar 11% distribution.

Top Railroad Stocks To Buy Right Now: Antofagasta PLC (ANTO)

Antofagasta plc (Antofagasta) is a Chile-based copper mining company with interests in transport and water distribution. The Company operates in three segments: Mining, Transport and Water. Antofagasta is a holding company that operates through its subsidiaries, associates and joint ventures. The principal activities of the Company are copper mining (including exploration and development), the transportation of freight by rail and road and the distribution of water. Its mining operations produce copper with by-products of gold, molybdenum and silver. Its activities are mainly concentrated in Chile. The Company�� segments include Los Pelambres, Esperanza, El Tesoro, Michilla, Antucoya, Exploration and evaluation, Railway and other transport services, Water concession, and Corporate and other items. Advisors' Opinion:

• [By Sarah Jones]

  Rio Tinto, the world�� second-largest mining company, fell 2.7 percent to 2,959.5 pence. Anglo American dropped 2.6 percent to 1,606 pence and Antofagasta Plc (ANTO), which mines for copper in Chile, retreated 3.9 percent to 916 pence.

5 Best Sliver Stocks To Own Right Now: Nissan Motor Co Ltd (NSANF.PK)

NISSAN MOTOR CO., LTD. is an automobile manufacturer. The Company has two business segments. The Automobile segment is engaged in the manufacturing, trading and distribution of various types of automobiles, marine products and accessories, as well as the research, development and sale of lithium-ion secondary batteries. The Sales Financing segment is engaged in the provision of sales financing, as well as property and casualty insurance services, among others. On November 11, 2013, the Company announced that it had established an Indonesia-based subsidiary, which is engaged in the captive finance business to make loans to the customers of Indonesia. Advisors' Opinion:

• [By Quoth the Raven]

  Regardless, through July of this year, Fusion was on pace to beat its 2012 numbers significantly.

  RankCarJuly
  2013
  YTD% ChangeJuly
  2013% Change#1Toyota (TM) Camry242,406- 0.6%34,780+ 16.3%#2Honda (HMC) Accord218,367+ 18.8%31,507+ 10.0%#3Nissan (NSANF.PK) Altima197,321+ 7.4%29,534+ 11.0%#4Honda Civic191,120+ 1.9%32,416+ 29.6%#5Toyota Corolla/Matrix183,435+ 4.6%24,463+ 3.5%#6Ford Fusion181,668+ 13.4%20,522

  - 12.0%

Top Railroad Stocks To Buy Right Now: Ultratech Inc.(UTEK)

Ultratech, Inc. develops, manufactures, and markets photolithography and laser thermal processing equipment. It supplies step-and-repeat photolithography systems based on one-to-one imaging technology to semiconductor device manufacturers for applications involving line geometries of 0.75 microns or greater and to nanotechnology manufacturers. The company?s steppers are also used to manufacture semiconductors that are used in various applications, such as telecommunications, automotive control systems, power systems, and consumer electronics. It also supplies 1X photolithography systems to thin film head manufacturers; and offers LSA100, a laser-based thermal annealing tool used by the semiconductor industry for various process steps, including activation of implanted impurities, dielectric film formation, formation of silicides, and stabilization of copper grain structures. Ultratech, Inc. sells its systems to semiconductor, advanced packaging, high-brightness light emit ting diodes, thin film head, and various other nanotechnology manufacturers in North America, Europe, and Asia. The company was founded in 1979 and is headquartered in San Jose, California.

Advisors' Opinion:

• [By Seth Jayson]

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

Top Railroad Stocks To Buy Right Now: Airbus Group NV (EADSY)

Airbus Group NV, known as European Aeronautic Defence and Space Company EADS NV, is a Netherlands-based company active within the aerospace and defense sector. The Company manufactures aircrafts, helicopters, commercial space launch vehicles, missiles, satellites, defense systems and defense electronics, and offers services related to these activities. The Company oprates four divisions. The Airbus division comprises the Airbus Commercial and Airbus Military segments, which develop, manufacture, market and sell commercial jet aircrafts, military transport aircrafts and special mission aircrafts, among others. The Eurocopter division develops, markets and sells civil and military helicopters. The Astrium division develops, manufactures and sells satellites, orbital infrastructures and launchers, as well as provides space-related services. The Cassidian division develops, manufactures and sells missiles systems, military combat and training aircrafts, among others. Advisors' Opinion:

• [By Rich Smith]

  Foolish takeaway
  Boeing's planes have, and Boeing's stock has, stood the test of time -- 97 years, to be precise. Does all this prove conclusively that Boeing stock should be bought today, at a 19 P/E ratio? Maybe, maybe not. But before you count Boeing out over a couple of mishaps, remember -- its biggest rival today, Airbus parent EADS (NASDAQOTH: EADSY  ) , costs more than 25 times earnings. And EADS has only been around since 2000.

• [By Ben Levisohn]

  Shares of Boeing have dropped 0.4% to $128.99 today at 12:56 p.m., while Airbus (EADSY) has gained 1.4% to $18.16 and Embraer (ERJ) has dropped 0.9% to $33.38.

Top Railroad Stocks To Buy Right Now: Eco Building Products Inc (ECOB)

ECO Building Products, Inc. (ECOB), incorporated on March 21, 2007, is a manufacturer of wood products treated with an eco-friendly chemistry that protects against fire, mold/mycotoxins, fungus, rot-decay, wood ingesting insects and termites with ECOB WoodSurfaceFilm and fire retardant coating). ECOB�� newest product, Eco Red Shield also serves as a fire inhibitor protecting lumber from fire, slowing ignition time and reducing the amount of smoke produced. The Eco Building Products line includes dimensional lumber, wall and floor panels, I-joists, GluLam Beams, laminated veneer lumber (LVL) beams, truss lumber and trim. These products can be coated at its production facilities and at the mill or distributor with its formula and coating machines. Its products include Eco Red Shield, Eco Clear Shield, Eco Blue Shield, Eco Shelter, Eco Cabinets, Smart Components Seismic Walls, Eco LVL Beam, Eco I Joist, Eco Corbels, Eco Trim, Eco LVL Studs, and Calvert Curved Beams.

As of June 30, 2012, the Company owned 100% of E Build & Truss, Inc. (E Build), Red Shield Lumber, Inc. (Red Shield) and Seattle Coffee Exchange (Seattle). Red Shield was formed for the purpose of opening a plant in Canada utilizing the Company�� red coating process for sale and distribution. As of December 31, 2011, the wholly owned subsidiary had little operating activity. E Build was formed for the purpose of operating the Company�� Framing Labor and Truss manufacturing activities. ECOB has developed a line of eco-friendly protective wood coatings that extend the life of framing lumber and other wood used in the construction of single-family homes, multi-story buildings, as well as The Eco Shelter. In December 2011, the Company formed Seattle in the State of California. Seattle is a coffee shop which is located in the 1st floor of the Company�� corporate headquarters in Vista, California. This wholly owned subsidiary has not started its operations, as of June 30, 2012.

The Company�� eco-friendly formula ! controls moisture and protects lumber from mold, mildew, fungus, decay, rot, termites (and other wood boring insects including Formosan termites), while simultaneously serving as a fire inhibitor. The Company�� eco-friendly formula was designed for staining - it controls moisture and protects lumber from mold, mildew, fungus, decay, rot, termites while simultaneously serving as a fire inhibitor. ECOB�� eco-friendly formula controls moisture and protects lumber from mold, mildew, fungus, decay, rot, termites (and other wood boring insects including Formosan termites). Eco Red Shield Smart ComponentsO wall systems are pre-engineered seismic wall systems. The Company�� pre-engineered and pre-packaged kit comes pre-cut and ready to assemble with hammer and nails - the simple design makes it ideal for rapid response relief housing, events, offices, meeting halls, storage sheds, medical clinics and more. It is available in a range of sizes and floor plans.

Eco has delivered cabinet solutions for kitchen, bath, garage and office space. Smart Components is made with Eco Red Shield Protected Lumber for builders in seismic hot spots, such as California, Mexico and Japan. The I beam joist is eco-friendly solution to large structural beams. Laminated Eco Trim is protected on all six sides and available in any protective coatings providing a nearly impenetrable barrier against moisture, mold and insects. It also offers an ultra-smooth surface for painting and a clean, finished look that builders and homeowners desire.

The Company competes with Arch Chemical and Osmose, Inc.

Advisors' Opinion:

• [By Peter Graham]

  Small cap green stocks Eco Depot Inc (OTCMKTS: ECDP), Eco Building Products Inc (OTCMKTS: ECOB) and Profire Energy, Inc (OTCBB: PFIE) has been getting some extra attention lately in various investment newsletters thanks to paid promotions or investor relation campaigns. Of course, there is nothing wrong with properly disclosed promotions and investor relations campaigns, but small cap green stocks tend to be extra volatile when compared with other stocks. So how in greenbacks will these three small cap green stocks produce for investors? Here is a quick reality check: