With the shocking potential of the shale oil boom finally starting to sink in, the only real challenge left is finding the best investments in this exciting slice of the energy industry.
Let's start the hunt by looking at where oil production is accelerating the most.
Total U.S. oil production last year grew by approximately 1 million barrels a day, according to BP's Statistical Review of World Energy, but most of the gains came from just three shale oil fields: the Bakken in North Dakota, and the Eagle Ford and Permian Basin, both in Texas.
That's why Money Morning Global Energy Strategist Dr. Kent Moors said "It's practically raining money" in Texas.
Here's a look at some of the impressive numbers coming out of these three fields:
In the second quarter of this year alone, there were 1,050 new wells drilled in the Eagle Ford, according to oilfield services supplier Baker Hughes. Over the past year, a total of 4,092 new wells were drilled there. International energy analysts Wood Mackenzie project that Eagle Ford shale oil output will jump 50% this year, to an average of 844,000 barrels a day. The Permian Basin had 9,061 wells drilled in the past year, the most in the United States, and the Bakken had 2,357 new wells drilled. Wood Mackenzie forecast tight oil production in the United States to exceed 5 million barrels a day by 2019 - just a few years away - with more than half of that total coming from the Bakken and Eagle Ford.And even those numbers are only the beginning.
Top Supermarket Companies To Invest In 2015: Winning Brands Corp (WNBD)
Winning Brands Corporation is a manufacturer of cleaning solutions. The Company offers products in three markets: Consumer, Industrial and Commercial. Its Consumer products include 1000+ Stain Remover; KIND Laundry Detergent; KIND Fabric Softener; KIND Laundry Stain Remover, and CLEAN1 All Purpose. Its Industrial products include TrackMoist Dust Suppressant, and ReGuard-4 Equipment Cleaning for Emergency Responders. Its Commercial products include Professional Wet Cleaning Solutions. The Company owns 100% interests in Niagara Mist Marketing Ltd.
The consumer products are offered for sale through stores in various sectors, such as hardware, paint, convenience, and grocery. The industrial products are targeted for sale through professional property maintenance personnel in the case of TrackMoist and distributors to fire-fighting organizations in the case of ReGuard-4. The commercial products are for use by businesses in their line of work to generate a finished product, with an emphasis on the dry-cleaning sector, such as on cruise ships to perform cleaning of Dry Clean Only garments in substitution of the solvent perchloroethylene (Perc).
Advisors' Opinion:- [By Peter Graham]
Small cap stocks Beamz Interactive Inc (OTCBB: BZIC), EHouse Global (OTCBB: EHOS) and Winning Brands Corporation (OTCMKTS: WNBD) were all heading in different directions at the end of last week with the first small cap surging 49.94% while the other two sank 31.28% and 25.32%, respectively, on Friday. Moreover, all three small cap stocks are already heading in different directions again this morning. So where should investors and traders place their bets? Here is a closer look at all three small cap stocks:
Hot Services Companies To Buy For 2014: Saks Incorporated(SKS)
Saks Incorporated operates retail stores in the United States. Its stores offer an assortment of fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. The company operates stores under the brand name of Saks Fifth Avenue (SFA) that are principally free-standing stores in shopping destinations or anchor stores in upscale regional malls. It also operates Saks Fifth Avenue OFF 5TH (OFF 5TH) stores, which are primarily located in upscale mixed-use and off-price centers. As of January 28, 2012, the company operated 46 SFA stores; and 60 OFF 5TH stores. Saks Incorporated also sells its products online at saks.com, as well as through catalogs. The company was founded in 1919 and is headquartered in New York, New York.
Advisors' Opinion:- [By Andrew Marder]
The 1% has seen phenomenal income growth recently, and that's spurred growth at companies like Saks (NYSE: SKS ) and Nordstom (NYSE: JWN ) , both of which managed 5% increases in revenue in the last quarter.
- [By Rich Duprey]
The own of upscale retailer Lord & Taylor is adding another luxury nameplate to its portfolio. Canadian shop Hudson's Bay will buy Saks (NYSE: SKS ) , the two retailers jointly announced, in a deal valued at about $2.9 billion, including debt.
- [By Andrew Marder]
For a company that is putting up solid sales growth, has a great brand, and has seen its stock price rise more than 40% in the last 12 months, Saks (NYSE: SKS ) didn't demand much of a premium. Hudson's Bay, the operator behind Lord & Taylor, picked up Saks for just $16 per share, representing a 4.5% bump to Friday's closing price.
- [By Chris Hill]
Hertz (NYSE: HTZ ) dips on good-not-great earnings. Candian retailer Hudson's Bay buys Saks (NYSE: SKS ) for $2.4 billion. Wynn Resorts' (NASDAQ: WYNN ) second-quarter profit gets hit with one-time charges. Omnicom Group (NYSE: OMC ) merges with Publicis Group to form the world's largest advertising and marketing firm. In this segment from Investor Beat, Motley Fool analysts Bill Barker and Andy Cross discuss four stocks making moves on Tuesday.
Hot Services Companies To Buy For 2014: DC Brands International Inc (HRDN)
DC Brands International, Inc. (DC Brands), incorporated on April 29, 1998, is engaged in the manufacture, marketing and distribution of health-related products that utilize natural botanicals, vitamins, minerals and supplements. As of December 31, 2009, the Company focused on the sale of products under its H.A.R.D. Nutrition label. As of December 31, 2009, the Company had two distinct types of products sold under its H.A.R.D. Nutrition logo, such as Functional Water Systems and nutritional supplements. Its H.A.R.D. Nutrition Functional Water System provides consumers with the combination of nutraceutical supplements with a functional beverage. All of the products sold under its H.A.R.D. Nutrition Functional Water System are sold in a bottle, which combines in one container water, which is lightly flavored, with vitamins stored in its licensed flip top compartment on the top of the bottle. DC Brands also sells other products included in its H.A.R.D. Nutrition label, such as herbal supplements, which are made from a mixture of herbs. The Company�� products are sold to consumers, primarily through retail outlet distribution. The Company�� wholly owned subsidiaries are DC Nutrition, Inc. and DC Brands, LLC. As of December 31, 2009, DC Brands, LLC was inactive. In June 2013, DC Brands International Inc acquired an undisclosed minority stake in Village Tea Co Distribution Inc.
Functional Water Systems
DC Brands��Functional Water Systems are a combination of a functional beverage and a nutraceutical. The Company provides consumers with a combination of a beverage and a nutraceutical supplement all in one convenient bottle. As of December 31, 2009, the Company manufactured nine water systems. Each system includes supplements, vitamins and minerals that are enclosed in its licensed cap, which is attached to its bottle filled with a lightly flavored water specially formulated to act as a catalyst for the enclosed supplements. The Functional Water Systems have a shelf life of one! year. The Company conducts periodic tests of the color, flavor and desired results of its products in house. Each product contains a label with a date stamp that specifies the shelf life.
The Company�� nine different systems are The Daily Basics, The Fat Fighter, The Get Over It-Feel Better Now, Whacked Energy, Wide Awake, Win, Fix It, Cleanse +, and Rebuild and Recover. The Daily Basics is a wellness product that includes vitamins and supplements. The Fat Fighter falls under the diet and weight loss category. The Get Over It-Feel Better Now is a wellness product that is a blend of vitamins, herbs and minerals. As of December 31, 2009, The Get Over It-Feel Better Now water system was sold in certain hotels in Las Vegas on a trial basis and was stocked in the guest rooms in the hotels and was marketed to combat hangovers. Whacked Energy and Wide Awake are part of its energy line. Win is geared towards athletes for use when conducting fitness training. Fix It is a combination of herbs and supplements. Cleanse+ is a 12 days total body cleansing system intended to be taken once every 90 days and Rebuild and Recover is a combination of products focused towards the serious athlete. All of its products contain ingredients that are focused to provide health-related benefits. The H.A.R.D. Nutrition Functional Water Systems are primarily sold in retail establishments.
Nutritional Supplements
The Company�� H.A.R.D. Nutrition Supplements are sold primarily though its wholly owned subsidiary DC Nutrition, Inc. and are focused at athletes and improving performance. As of December 31, 2009, the Company had approximately 300 products in this product line, which it divided into the four categories: performance and strength supplements, wellness products, energy supplements, and the weight loss and diet products.
The Company competes with Coca-Cola and Pepsi.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks COREwafer Industries Inc (OTCMKTS: WAFR), DC Brands International, Inc (OTCMKTS: HRDN) and PV Enterprises International (OTCMKTS: PVEC) surged 82.86%, 33.33% and 25%, respectively, last Friday ��meaning investors or traders got a nice Christmas present. Moreover, these small cap stocks have been the subject of minimal paid stock promotions. But will these three small cap stocks continue to deliver a good performance into and after the holidays? Here is a quick reality check before you get overly excited:
Hot Services Companies To Buy For 2014: American Public Education Inc.(APEI)
American Public Education, Inc., together with its subsidiary, American Public University System, Inc., provides online postsecondary education focusing on the needs of the military and public service communities. The company operates through two universities, American Military University (AMU) and American Public University (APU) serving approximately 110,000 students in the United States and internationally. The universities share a common faculty and curriculum, which includes 87 degree programs and 69 certificate programs in disciplines related to national security, military studies, intelligence, homeland security, criminal justice, technology, business administration, education, nursing, and liberal arts. The company was founded in 1991 and is headquartered in Charles Town, West Virginia.
Advisors' Opinion:- [By James Brumley]
American Public Education (APEI) has been one of the biggest victims of the DOE’s partial shutdown. The 41,000 individual online classes scheduled to begin a few days ago were reduced by 13,000 when many military and government employees lost their tuition assistance as of October 1st.
- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Non-cyclical consumer goods & services shares climbed around 0.22 percent in trading on Friday. Leading the sector was strength from American Public Education (NASDAQ: APEI) and XO Group (NASDAQ: XOXO). In trading on Friday, telecommunications services shares were relative laggards, down on the day by about 0.41 percent. - [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 American Public Education (Nasdaq: APEI ) , whose recent revenue and earnings are plotted below.
Hot Services Companies To Buy For 2014: Performant Financial Corp (PFMT)
Performant Financial Corporation (Performant), incorporated on October 8, 2003, provide technology-enabled recovery and related analytics services in the United States. The Company�� services help identify and recover delinquent or defaulted assets and improper payments for both government and private clients in a broad range of markets. The Company provides its services on an outsourced basis, where the Company handles many or all aspects of its clients��recovery processes. The Company derives its revenues from services for clients in a range of different markets. These markets include student lending and healthcare, as well as its other markets, which include delinquent state taxes and federal Treasury and other receivables. The Company�� clients include 12 of the 32 public sector participants in the student loan industry. In February 2012, it purchased a perpetual software license and computer equipment from HOPS, Inc.
Student Lending
The Company derives its revenues from the recovery of student loans. These revenues are contract-based and consist primarily of contingency fees based on a specified percentage of the amount the Company enables its clients to recover. The Company engages subcontractors to assist in the recovery of a portion of the client�� portfolio. It also receives success fees for the recovery of loans under Master Service Agreements (MSAs) and its revenues under MSA arrangements include fees earned by the activities of its subcontractors. The Company uses its technology to identify, track and communicate with defaulted borrowers on behalf of its clients to implement suitable recovery programs for the repayment of outstanding student loan balances.
The Company�� client�� contract with it to provide recovery services for large pools of student loans generally representing a portion of the total outstanding defaulted balances they manage, which they provide to us as placements on a periodic basis. The Company also restructures and r! ecovers student loans issued directly by banks to students outside of federal lending programs.
Healthcare
The Company derives revenues from the healthcare market primarily from its Recovery Audit Contractor (RAC), contract, under, which it is a prime contractor responsible for detecting improperly paid Part A and Part B Medicare claims in 12 states in the Northeastern United States. Revenues earned under the RAC contract are driven by the identification of improperly paid Medicare claims through both automated and manual review of such claims. The Company outsourced certain aspects of its healthcare recovery process to three different subcontractors.
Other
The Company derives revenues from the recovery of delinquent state taxes, and federal Treasury and other receivables, default aversion services for certain clients, including financial institutions and the licensing of hosted technology solutions to certain clients. For its hosted technology services, the Company licenses its system and integrates its technology into its clients��operations, for which it is paid a licensing fee. The Company�� revenues for these services include contingency fees, fees based on dedicated headcount to its clients and hosted technology licensing fees. The federal agency market consists of government debt subrogated to the Department of the Treasury.
For state and municipal tax authorities, the Company analyzes a portfolio of delinquent tax and other receivables placed with the Company, develop a recovery plan and execute a recovery process designed to maximize the recovery of funds. In some instances, it has also run state tax amnesty programs, which provide one-time relief for delinquent tax obligations, and other debtor management services for its clients. For the Department of the Treasury, it recovers government debt subrogated to it by numerous different federal agencies. The placements it has provided represent a mix of commercial and individual oblig! ations.
Data Management Expertise
The Company�� platform manages and stores large amounts of data throughout the workflow process. This includes both data it has compiled, as well as third-party data.
Data Analytics Capabilities
The Company�� data analytics capabilities screen and allocate massive volumes of recovery inventory. Upon receipt of each placement of student loans, the Company utilize its algorithms to assist its in determining the recovery process and the optimal allocation of recovery specialist resources for each loan. In the healthcare market, the Company analyze millions of Medicare claims to find potential correlations between claims data and improper payments.
Workflow Processes
The Company refers to the patented technology that supports its workflows as Smart Bins. The Company�� workflow processes integrate a range of functions that encompass each stage of a recovery process.
The Company competes with Health Management Systems, Inc., Connolly Consulting, Inc. and CGI Group.
Advisors' Opinion:- [By Magic Diligence]
Much of United Online's appeal was due to its over 4% dividend yield, but the company announced in late January that it would be discontinuing its dividend to focus on growth initiatives. This follows itsNovember spin-off of FTD, which leaves United with 3 cash producing but declining businesses: Classmates.com, NetZero, and Juno. NetZero Mobile Broadband is an interesting product but one with a lot of competition from the carriers. Frankly, the dividend has been the main attraction for some time, and without it this is a declining company with a fair bit of debt. That does not make for the most attractive option. PASS.
Performant Financial (PFMT) - down 28.1%Performant earns fees for collecting delinquent student loans (about 60% of the business) and providing recovery services for improper Medicare payments (close to 30%). The recent sell-off in the stock seems due to comments from Sallie Mae regarding lower rehabilitation fees paid to Guarantee Agencies, which investors expect to "trickle down" to service providers like PFMT. The stock has been sold off dramatically on these assumptions. We should know more when the company reports earnings in the coming weeks, but this is one worth looking at more closely - the firm has been growing revenue at 30%+ rates. WORTHY OF CONSIDERATION.
- [By Roberto Pedone]
Performant Financial (PFMT) provides technology-enabled recovery and related analytics services in the U.S. This stock closed up 6.9% at $11.84 in Friday's trading session.
Friday's Volume: 310,000
Three-Month Average Volume: 261,916
Volume % Change: 60%From a technical perspective, PFMT soared higher here right off both its 200-day moving average of $11.02 and its 50-day moving average at $11.06 with decent upside volume. This move is quickly pushing shares of PFMT within range of triggering a major breakout trade. That trade will hit if PFMT manages to take out some near-term overhead resistance levels at $12.47 to $13.26 with high volume.
Traders should now look for long-biased trades in PFMT as long as it's trending above its 200-day at $11.02 and then once it sustains a move or close above those breakout levels with volume that's near or above 261,916 shares. If that breakout hits soon, then PFMT will set up to re-test or possibly take out its all-time high at $14.09. Any high-volume move above $14.09 will then give PFMT a chance to trend north of $15.
Hot Services Companies To Buy For 2014: Paradise Inc (PARF)
Paradise, Inc., incorporated in September, 1961, conducts operations through two business segments: Candied Fruit and Molded Plastics. The Candied Fruit segment is engaged in the production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Based on market conditions, it is also engaged in the processing of frozen strawberry products for sale to commercial and institutional users, such as preservers, dairies and drink manufacturers. The Molded Plastics segment is engaged in the production of plastic containers for the Company�� products and other molded plastics for sale to unaffiliated customers.
During the year ended December 31, 2011, in terms of candied fruit sales, approximately 20% were shipped to manufacturing bakers and other institutional users, with the balance being sold through supermarkets and other retail outlets for ultimate use in the home. Sales to retail outlets are usually generated through registered food brokers operating in exclusively franchised territories.
The Company�� trademarks Paradise, Dixie, Mor-Fruit and Sun-Ripe are registered with the appropriate Federal and State authorities for use on the Company�� candied fruit. During 2011, the Company derived approximately 15% of its consolidated net sales from Wal-Mart Stores, Inc.
Advisors' Opinion:- [By Geoff Gannon]
What is the advantage of being a huge company? There are some. For one, we know the business is ��or was ��growable. A lot of small companies stay small because their circle of competence is small. Paradise (PARF) is an over the counter stock. It has a market cap of $10 million. And it dominates the candied fruit market in the U.S. Why isn�� the company bigger?
Hot Services Companies To Buy For 2014: GSE Holding Inc (GSEH)
GSE Holding, Inc. (GSE) is a provider of engineered geosynthetic containment solutions. GSE�� products are used in a range of infrastructure end markets, such as mining, waste management, liquid containment (including water infrastructure, agriculture and aquaculture), coal ash containment and shale oil and gas. The Company operates in two segments: North America, which represents the United States, Canada and Mexico, and International, which represents the rest of its global operations. The Company is a provider of products required to deliver customized solutions for projects on a global basis, including geomembranes, drainage products, geosynthetic clay liners, or GCLs, nonwoven geotextiles, and specialty products. In April 2010, the Company sold its 75.5% interest in GSE Bentoliner (Canada). In June 2010, it divested the United States Installation. In July 2010, GSE closed GSE UK, its manufacturing facility in the United Kingdom. In March 2012, the Company announced the purchase, by one of its subsidiaries, of certain manufacturing equipment from Poly-America, L.P. and Poly-Flex, Inc. In February 2013, the Company acquired SynTec, LLC.
GSE has seven manufacturing facilities located in the United States, Germany, Chile, Egypt and Thailand, 18 regional sales offices located in 12 countries. The Company serves mining, waste management and power companies; independent installers and dealers; general contractors and government agencies.
Geomembranes
Geomembranes are synthetic polymeric lining materials used as barriers in geotechnical engineering applications in mining, solid waste containment and liquid containment markets. Geomembranes are manufactured from polyethylene and polypropylene resins with additives designed to resist weathering, ultraviolet degradation and chemical exposure for extended time periods. Its geomembranes include GSE high-density polyethylene (HDPE), GSE LLDPE, GSE Textured, GSE White and GSE Conductive. GSE HDPE liners are used material! for lining applications in the geosynthetic products industry.
Drainage Products
The Company�� primary drainage products are GSE HyperNet and GSE FabriNet. GSE HyperNet. GSE�� geonet product consists of two sets of HDPE strands intertwined to form a channel along which fluid is conveyed for drainage. GSE HyperNet liners are used as part of a landfill liner system. Its geocomposite product is produced by heat bonding nonwoven geotextiles to one or both surfaces of the GSE HyperNet. This permeable textile serves as a separator and a filter, keeping soils out of the GSE HyperNet drainage layer, which allows the product to perform its function of transmitting liquids and gases. GSE FabriNet liners are used as part of a landfill liner system.
Geosynthetic Clay Liners
GSE offers two varieties of GCLs: GSE GundSeal and GSE Bentoliner. GCL, which includes GSE GundSeal, combines HDPE liners with sodium bentonite clay. The sodium bentonite clay is adhered directly to the liner and serves as a support layer to the liner, sealing any small punctures in the overlaying liner by expanding or swelling upon contact with liquids. Applications of GSE GundSeal include landfill liners and water containment pond liners. GSE Bentoliner combines durable geotextile outer layers with an inner layer of low permeability sodium bentonite clay. GSE Bentoliner includes patent-pending coal ash-resistant GCL. GSE Bentoliner offers an array of application usages for low to high loads and flat to steep slopes in landfill liners, mining heap lead pads and water containment pond liners.
Nonwoven Geotextiles
Nonwoven geotextiles are synthetic, staple fiber, nonwoven needle-punched fabrics used in environmental and other industrial applications that include filtration, soil stabilization, separation, drainage and gas transmission, cushion and liner protection applications. The Company�� nonwoven geotextile products are available in many weights and thickness! es. They ! are used primarily internally to manufacture its geocomposite and Bentoliner products. During the year ended December 31, 2010, sales of nonwoven geotextiles represented 3% of its total product sales.
Specialty Products
The Company offers other specialty polysynthetic products. GSE CurtainWall and GSE GundWall specialty products are vertical barrier systems that block the lateral migration of subsurface fluids. GSE CurtainWall is suited for trench-style installations, while GSE GundWall is installed with trenchless, vibratory and installation techniques. GSE StudLiner is a studded geomembrane that protects against corrosion and deterioration of concrete structures, including tanks, pipes, drainage channels and tunnels. Common applications for GSE StudLiner include industrial, municipal and civil applications, such as concrete storage tank protection. Pre-Fabricated Products include pipe boots, corners, sumps or other ancillary parts.
The Company competes with Agru Kunststofftechnik GmbH (Agru) and Agru America.
Advisors' Opinion:- [By James Miller Phd]
As we can see, the firm has a higher ROE than it peers: Sharps Compliance, Casella Waste Systems, Inc. (CWST), Donaldson Company, Inc. (DCI) and GSE Holding Inc. (GSEH).
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