3 Biotech Companies You Should Have Bought This Year

Biotech companies can make you rich if you buy the right ones at the right time. They can also make you poor; but let's not dwell on the negative.

If you'd owned these three biotech companies at the beginning of the year, you're sitting on around a triple compared to a relatively smaller-but-still-impressive 34% increase in the Nasdaq Biotechnology Index.

AEGR data by YCharts.

Let's take a look at what's driven the biotech companies to increase in price and whether they're still a buy at the new price.

This isn't crazy
ACADIA Pharmaceuticals (NASDAQ: ACAD  ) spiked in April after the Food and Drug Administration threw the biotech company a bone and said ACADIA wouldn't have to run a second phase 3 trial for pimavanserin in patients with Parkinson's disease psychosis.

The move was a double bonus because it reduced the time it'll take to get pimavanserin on the market and eliminated the chance of a failure in the second phase 3 trial. While the drug passed its most recent phase 3 trial just fine, the symptoms of Parkinson's disease psychosis are somewhat subjective. Knowing that the drug worked in a phase 3 trial already could increase the placebo effect, making it hard to repeat the results. Now ACADIA doesn't have to.

We've got a blockbuster
Aegerion Pharmaceuticals' (NASDAQ: AEGR  ) big spike in mid-May came after management said at a Bank of America Merrill Lynch health-care conference that its cholesterol-lowering drug Juxtapid could have a $1 billion market for the genetic disease it treats. Analysts quickly regurgitated the biotech company's assertions, increasing their price targets accordingly.

Claiming blockbuster potential isn't exactly a revolutionary thing for a biotech company to say. It seems like almost every orphan-drug maker arrives at the annual price of its drug by dividing $1 billion by the number of patients it thinks exist.

And Aegerion has to compete with Sanofi (NYSE: SNY  ) and Isis Pharmaceuticals' (NASDAQ: ISIS  ) Kynamro, which is approved for the same genetic disorder. Juxtapid is arguably a better drug with a better side-effect profile. It can also be taken orally, while Kynamro needs to be injected. Still, I think it's unreasonable to expect Aegerion to capture the entire market.

Anticipation
MannKind's (NASDAQ: MNKD  ) rise doesn't appear to be due to anything that the biotech company has done, but what investors expect the company will do in the future. Specifically, investors are anticipating the release of data this summer for its phase 3 trials testing inhaled insulin Afrezza.

The FDA made the company run new trials after it improved the device that delivers the insulin, but since the underlying drug hasn't changed, it seems extremely likely that the drug will meet its clinical endpoints.

The bigger risk is whether doctors will prescribe Afrezza and whether MannKind can find a big pharma partner to help the biotech company change the paradigm of diabetes treatment. An uphill battle for sure.

Best buy?
Aegerion and MannKind looked like much better deals before their run-ups this year. I don't see how their respective news -- or lack thereof -- makes the biotech companies worth nearly triple what they were valued at the beginning of the year.

ACADIA is arguably worth more since it's less risky and should be profitable sooner, but an FDA approval is still two years away, so there doesn't seem to be any rush to jump into the biotech company anytime soon.

The future of MannKind?
Will MannKind's disruptive technology revolutionize the way diabetes is treated around the world -- or will the FDA put the kibosh on this product before it even hits the market? In a new premium research report on MannKind, these complex issues are made crystal clear, in addition to showing you why to buy or sell the stock today. To find out more, click here to grab your copy today.

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More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

3 Things Bank of America Is Wishing For

If you've followed the tale of Bank of America (NYSE: BAC  ) since the financial crisis, you know that there are plenty of shortcomings that the bank would like to rectify. One way to determine which of those shortcomings bears the greatest impact on the bank would be to ask CEO Brian Moynihan which ones he would eliminate first.

So, since we don't have a direct line to Moynihan, let's think hypothetically. If a genie showed up on Moynihan's front steps, what are three things that he might wish in order for Bank of America to succeed? And we're following the Aladdin rules here: No killing people, no "falling in love" spells, no asking for more wishes, and no bringing people back from the dead. Now that the rules are clear, let's begin.

Wish No. 1: Clear the legal docket
One of the most visible and deep-rooted problems for B of A since the financial crisis has been the long parade of courtroom battles over transactions between B of A (or its acquired subsidiaries) and investors or other businesses. Probably the single biggest threat to the bank, these legal troubles have cast a shadow of uncertainty that it cannot shake before exiting the courtroom for the last time.

And yet there are still cases to be heard and settlements to be reached. This week posed one of the biggest hurdles for B of A as a $8.5 billion settlement will be reviewed and either approved or dismissed. If the latter occurs, it could mean a big payout from the bank.

So, clearly, Moynihan's first wish would be to have all the current cases against Bank of America withdrawn by the plaintiffs and limit future cases to those outside the spectrum of the financial crisis. With the black veil of legal uncertainty lifted, the bank can refocus that energy into expansion of its operations and develop new opportunities for growth. Not to mention the savings in legal fees.

Wish No. 2: Impress our biggest critics
No one likes to be at the bottom of the list. And for Bank of America, that list usually revolves around customer satisfaction. Earlier this year, J.D. Power and Associates released its findings on customer satisfaction, and though the big banks are gaining momentum with their clients, B of A remained dead last. With JPMorgan (NYSE: JPM  ) ) taking the top spot in the survey, followed by Wells Fargo (NYSE: WFC  ) , Citigroup (NYSE: C  ) , and finally B of A, it's clear that the bank has some major issues to resolve.

This second wish would have to be worded wisely, though, since the best way to tackle it would have to be tailoring the bank's services to the customers, not the other way around. The genie's magic would give the bank something it's failed to find for this problem to date: a solution.

Wish No. 3: Build up confidence
Seeing that the bank now has no worries with legal issues and customers are fully satisfied with its services, it can turn its attention back to investors. Without confidence in management and the bank's outlook, there's nowhere for investors to turn. So skirting cautiously around the limitation for this wish to make investors fall in love with the bank, Moynihan simply wants investors' confidence to grow.

Management has already proved its mettle with a good scrub of the business and record earnings growth. With added shareholder confidence, the bank could see a big boost in share price, leading to more value for both the bank and investors.

Just a little magic
Those who don't believe in magic will never find it, according to Roald Dahl. And though there may be little room for magic in business these days, it can give you a better perspective on some of the most complex issues affecting a company. We may not have heard the three wishes straight from the horse's mouth, but the three issues at hand are big reasons why Bank of America has yet to really take off in the wake of its recent emergence from the stranglehold of the financial crisis. Take away the magic, and you have a company that needs to address three big setbacks -- but management sure is up for the challenge.

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.

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More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Best Media Stocks To Own For 2014

Obamacare is racking up expenses, in particular, with the creation of insurance exchanges. In this video, David Williamson looks at this feature of Obamacare, and a possible free market solution. The problem is that these exchanges are proving more expensive than originally thought, up to an estimated $5.7 billion for 2014. No wonder less than half of the states in the country have come on board. One solution is an online insurance exchange. A form of such an exchange already exists. Will it work for a nationwide insurance market?�Hard to say. On the one hand, it could offer small businesses unprecedented access to insurance plans. On the other hand, an online market may simply offer those plans with the best commissions and not the best deals.

When President Obama was re-elected, shares of UnitedHealth and other health insurers fell immediately. Is Obamacare a death knell for health insurers, or is the market missing out on some of the opportunities the law presents? In this brand new premium report on UnitedHealth, The Motley Fool takes a long-term view, honing in on�prospects for UnitedHealth in a post-Obamacare world. So don't miss out -- simply�click here now�to claim your copy today.

Best Media Stocks To Own For 2014: CBS Corporation(CBS)

CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Matthew Scott]

  The price of CBS (NYSE: CBS) stock has increased nearly than eight times in two years, jumping from $2.99 on March 9, 2009 to $25.04 at the end of the first quarter this year. Broadcasting advertising revenues have increased over the last two years and CBS has content choices in multiple genres that will likely be advertising winners for the foreseeable future. CBS Sports continues to be a leader, and the broadcaster has top entries Survivor and Amazing Race in the reality show area, top dramas such as the CSI series and the hot new series Hawaii Five-O, and it even had the top comedy Two and a Half Men before Charlie Sheen imploded. With all these shows expected back next year, ad revenues should continue to be strong.

Best Media Stocks To Own For 2014: DISH Network Corporation(DISH)

DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.

5 Best China Stocks To Buy For 2014: News Corporation(NWSA)

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Jonas Elmerraji]

  Nearest Support: $32
  
  Catalyst: Earnings Beat/Spinoff

  Media conglomerate News Corp. (NWSA) is up more than 4% this afternoon following an earnings beat for its third quarter of fiscal 2013 and plans to spin off the firm's publishing arm. News Corp.'s TV unit fared well in the third quarter, buoyed by especially strong performance at cable network Fox News, and shares gapped up before this morning's open as a result. That pushed the $77 billion stock to new 52-week highs.

  Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. Traders who aren't too risk-averse may want to consider buying NWSA here.

• [By ChemTrade]

  News Corp. (NASDAQ:NWSA): On 3/31/11 Viking Global Investors reported holding 20,075,700 shares with a market value of $352,930,804. This comprised 3.05% of the total portfolio. On 6/30/11, Viking Global Investors held 27,358,266 shares with a market value of $484,241,329. This comprised 4.06% of the total portfolio. The net change in shares for this position over the two quarters is 7,282,566. About the company: News Corporation is a diversified global media company.? The Company’s operations include the production and distribution of motion pictures and television programming.? The Company provides television, direct satellite, and cable broadcasting and the publication of newspapers, magazines, books and promotional inserts.

Best Media Stocks To Own For 2014: Thomson Reuters Corp(TRI)

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.

Best Media Stocks To Own For 2014: Liberty Global Inc.(LBTYA)

Liberty Global, Inc. provides video, broadband Internet, and telephony services primarily in Europe and Chile. The company offers broadband services over cable distribution systems, including video, broadband Internet, and telephony; and video services through direct-to-home satellite, or through multichannel multipoint distribution systems. Its analog video services comprise basic and expanded basic programming; and digital cable services include basic and premium programming, digital video recorders, and high definition programming, as well as pay-per-view programming, such as video-on-demand and near video-on-demand. In addition, the company offers voice-over-Internet-protocol and circuit-switched telephony services, as well as mobile telephony services using third-party networks. Further, it owns programming networks that provide video programming channels to multi-channel distribution systems owned by the company and the third parties. As of December 31, 2011, the com pany owned and operated networks that passed 33,262,100 homes; and served 18,405,500 video subscribers, 8,159,300 broadband Internet subscribers, and 6,225,300 telephony subscribers. Liberty Global, Inc. was founded in 2004 and is based in Englewood, Colorado.

Best Media Stocks To Own For 2014: Discovery Communications Inc(DISCA)

Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.

Dow Recovers From Heavy Morning Losses

Better-than-expected durable-goods orders weren't enough to excite investors early in trading today, as stocks were weighed down by the thought of an eventual end to easy money from the Fed. But markets recovered from this morning's big losses, and by 3:15 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was at breakeven, while the S&P 500 (SNPINDEX: ^GSPC  ) was off by just 0.15%.

The only significant economic news was a Department of Commerce report saying that durable-goods orders rose 3.3% in April after falling 5.9% in March. If you take out the transportation sector, which can be volatile, orders rose 1.3% on broad-based gains.

The Dow would be down much further if not for a 3.7% gain in Procter & Gamble's (NYSE: PG  ) stock price. After the market closed yesterday, it was announced that CEO Bob McDonald will be replaced immediately by former CEO A. G. Lafley. As fellow Fool Dan Dzombak pointed out earlier today, activist investor Bill Ackman has been pushing for a leadership change because P&G has been underperforming both the market and its peers. It'll take time to figure out whether Lafley can squeeze more value out of the company's operations, but for now investors are excited about the possibility.

Wal-Mart (NYSE: WMT  ) is the only other Dow stock moving significantly higher, gaining 1.2% today. The stock has been under pressure since reporting a 1.2% decline in first-quarter same-store sales, but even worse results from Sears yesterday may shrink the number of competitors Wal-Mart has to deal with. Sears' revenue dropped 9% in the first quarter, and the company lost $279 million, which leads to further speculation that Sears will eventually have to fold. At the very least, we know Sears is selling off assets and contracting its business instead of expanding. For Wal-Mart, that's good news, because Kmart is in the Sears family, and the two retailers share the same target customer. A smaller Kmart should mean more revenue for Wal-Mart in the long term. 

Shares of chipmaker Intel (NASDAQ: INTC  ) fell 0.8% today after the company released some specs for its Haswell line of chips. The company said the new chips consume 50% less power when in "active" mode and in "idle" mode offer two to three times the battery life of current Core chips. This is an effort to improve performance in the emerging tablet-PC crossover segment, which is where the PC business is headed. It'll take time to see whether the chip is integrated into more devices, but the stats are impressive enough that it should get a close look. 

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel must find new avenues for growth. In this premium research report on Intel, a Motley Fool analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

This Market Darling Is Starting to Slow Down

With the economy starting to improve, you might think Dollar Tree's (NASDAQ: DLTR  ) fortunes will reverse. The deep discounter provided unemployed and lower-income consumers a safe place in the storm, but with the economic weather clearing up, it would be reasonable to expect consumers to venture out again to higher-end retailers. However, that assumption would be wrong.

Dollar Tree recently announced record first-quarter earnings, with total sales up 8% and comparable-store sales up 2.1%, crushing the likes of big-box retailers like Safeway (NYSE: SWY  ) and Wal-Mart (NYSE: WMT  ) , which only reported a change in comparable-store sales of 1.5% and negative 1.2%, respectively.

Part of the reason behind Dollar Tree's record profits is that the company reached a record operating margin of 11.6%. Despite Dollar Tree's deep-discount business model, this margin is far higher than Safeway's, and is almost double that of even a premium-priced grocer like Whole Foods (NASDAQ: WFM  ) .

However, while Dollar Tree may have higher margins than Whole Foods, its sales growth is starting to lag. It's certainly beating low-cost competitors, but the bifurcating phenomenon seems to be fading. For a time, it seemed that the deep discounters and the high-end retailers were both doing extremely well, as customers either got poorer or richer and the middle thinned out. However, this quarter, Whole Foods reported nearly 7% same-store sales growth, and expects full-year earnings growth of up to 17%, while Dollar Tree issued guidance for just 2.8% growth at the top end of the range -- and the bottom end included the possibility of negative growth.

That may explain why Dollar Tree's stock has faltered over the last year. The company is doing well compared to competitors, but growth is starting to slow down, and the stock isn't particularly cheap. Safeway, for comparison, has had essentially flat sales for the last year, and operating margin was actually down this quarter, but small improvements in interest expenses and taxes have given a boost to net income, which has given encouragement to some investors already enticed by the company's low price-to-earnings ratio. Similarly, Wal-Mart's stock is starting to show some of its best growth in years, presumably because the stock was simply getting too cheap to pass up. It's not as if sales or profits have been improving much.

I continue to think that Dollar Tree is a superior company to its competitors, but as an investor, I would wait for this deep discounter to be on discount itself. In the meantime, add Dollar Tree to My Watchlist to find out if its growth slips any further in the coming quarters.

More Foolish insight from the Fool
It's hard to believe that a grocery store could book investors more than 30 times their initial investment, but that's just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic foods powerhouse. In this premium report on the company, we walk through the key must-know items for every Whole Foods investor, including the main opportunities and threats facing the company. So make sure to claim your copy today by clicking here.

Actavis to Acquire Warner Chilcott in $8.5 Billion Deal

A definitive agreement has been reached in which New Jersey-based Actavis (NYSE: ACT  ) will acquire Ireland-based pharma company Warner Chilcott (NASDAQ: WCRX  ) in an all-stock transaction valued at $8.5 billion, the companies announced today.

The proposed deal will expand on the existing specialty pharma business of Actavis, particularly therapeutics in areas including women's health, gastroenterology, urology, and dermatology.

At closing, which is expected by year's end, Warner Chilcott shareholders will receive 0.16 shares of the newly combined company, tentatively called "New Actavis," for each share of Warner Chilcott they own. Based on Actavis' closing price of $125.50 a share on May 17, that amounts to $20.08 for each  Warner Chilcott share, a 43% premium over Warner's 30-day volume-weighted average trading price, ending on May 9. Actavis shareholders will receive one share of New Actavis for each share owned at closing.

New Actavis intends to incorporate in Ireland after closing, and will be led by the Actavis executive management team. Activis CEO and President Paul Bisaro was quoted as saying, "The combination of Actavis and Warner Chilcott creates a strong specialty brand portfolio focused in therapeutic categories with strong growth potential, and is supported by a deep pipeline of development programs."

Existing shareholders of both Actavis and Warner Chilcott must approve the transaction. The boards of directors of each company have unanimously agreed to terms of the deal.

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Top Transportation Stocks To Invest In 2014

Union Pacific (NYSE: UNP  ) and CSX (NYSE: CSX  ) are selections for the real-money Inflation-Protected Income Growth portfolio. Like any investments, they need to be reviewed from time to time to see if� they're still worth owning. In the brief video below, portfolio manager Chuck Saletta reviews their valuations, balance sheets, and dividends and decides whether to hold on to the stocks or let them go.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here. For more information on the Graham Equation used for the valuation estimates, see the article at this link.

For more on iPIG portfolio selection CSX
With 21,000 miles of track serving two-thirds of the U.S. population, CSX maintains a valuable proprietary asset. Still, this railroad will face difficult obstacles in the years ahead due to a domestic surplus of natural gas and coal's declining popularity. To help investors better understand how CSX can deal with these challenges, The Motley Fool has released a brand-new premium research report authored by Isaac Pino, Industrials Bureau Chief and transportation expert. Isaac provides an in-depth look at CSX's competitive advantages, risk areas, and prospects for the future. Simply click here now to access your copy of this invaluable investor's resource.

Top Transportation Stocks To Invest In 2014: Assisted Living Concepts Inc. New (ALC)

Assisted Living Concepts, Inc., together with its subsidiaries, operates senior living residences in the United States. It offers general services, such as meals, activities, laundry, and housekeeping; support services, including assistance with medication, monitoring health status, co-ordination of transportation, and co-ordination with physician offices; and personal care services, such as dressing, grooming, and bathing. The company also arranges access to additional services from third-party providers, including physical, occupational, and respiratory therapy; home health; hospice; and pharmacy services. As of December 31, 2011, it operated 211 senior living residences comprising 9,325 units in 20 states. Assisted Living Concepts, Inc. was founded in 1994 and is headquartered in Menomonee Falls, Wisconsin.

Top Transportation Stocks To Invest In 2014: Saia Inc.(SAIA)

Saia, Inc., an asset-based trucking company, provides transportation and supply chain solutions primarily to the retail, chemical, and manufacturing industries in the United States. The company, through it subsidiary, Saia Motor Freight Line, LLC, offers regional and interregional less than truckload (LTL) services, selected national LTL, and time-definite services. It was formerly known as SCS Transportation, Inc. Saia, Inc. was founded in 2000 and is headquartered in Johns Creek, Georgia.

Advisors' Opinion:

• [By Michael]

  Saia, Inc. is an asset-based trucking company that provides a variety of transportation and supply chain solutions to a range of industries, including the retail, chemical and manufacturing industries. Its EPS forecast for the current year is 0.77 and next year is 1.34. According to consensus estimates, its topline is expected to grow 10.87% current year and 7.41% next year. It is trading at a forward P/E of 12.35. Out of eight analysts covering the company, four are positive and have buy recommendations and four have hold ratings.

Top Cheap Stocks To Buy For 2014: United Parcel Service Inc.(UPS)

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By Mark]

  UPS is a package delivery company. Cramer holds 600 shares of UPS stocks. UPS has a dividend yield of 3.20% and returned -6.68% since the beginning of this year. It has a market cap of $63.89B and a P/E ratio of 16.08. Jason Capello invested $253 million in UPS.

• [By Buffett]

   As the world's largest package delivery company, United Parcel Service (UPS) is the kind of toll-bridge operator that Buffett likes to invest in. When a business ships something, UPS gets a cut. Plus the sheer size of its global shipping network give UPS the kind of economic moat that Buffett likes to see. So do high customer-satisfaction ratings and conscientious drivers -- even if they do have to wear shorts.

  "This is not a business that you can re-create overnight," says Lowenstein. In fact, competitors have a tough time because UPS is so strong. DHS left the U.S. shipping market in 2009, and the U.S. Postal Service is struggling financially.

  That economic moat and broad reach also give UPS the pricing power, high profit margins and steady earnings growth favored by Buffett, whose Berkshire Hathaway owns 1.4 million shares. Here's another quality the Oracle of Omaha likes: UPS is shareholder friendly, returning excess capital through dividend hikes, share buybacks and debt retirement. "They are good capital allocators. They are not destroying value by doing dumb things," says Lowenstien.

  Despite these strengths, UPS looks cheap, because with a price-to-earnings ratio of 14.9, it trades about 30% below its average since 2000. In short, that means today's price is relatively low. "UPS is on sale due to concerns about the economy," says Lowenstein. And like Buffett, Lowenstein is a patient value investor who believes that sooner or later those concerns will blow over. When that happens, UPS stock will deliver for investors who buy now.

Top Transportation Stocks To Invest In 2014: YRC Worldwide Inc.(YRCW)

YRC Worldwide Inc., through its subsidiaries, provides various transportation services worldwide. The company?s YRC National Transportation unit offers a range of services for the transportation of industrial, commercial, and retail goods, such as apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2009, it had 11704 owned tractors, 1239 leased tractors, 50083 owned trailers, and 3244 leased trailers. Its YRC Regional Transportation unit?s service portfolio includes regional delivery, which comprises next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, and various specialized offerings; expedited delivery, that comprises day-definite, hour-definite, and time definite capabilities; inter-regional delivery; cross-border delivery; and operation of my.yrcregional.com and NewPenn.com, which are e-commerce Websites offering online resources to manage transportation activity. The company?s YRC Logistics units? service portfolio consists of distribution services that include flow through and pool distribution, dedicated warehousing, and value-added services; global services, which comprise international freight forwarding, customs brokerage, and value-added services; and transportation services, such as truckload brokerage, domestic freight forwarding, and transportation management. Its YRC Truckload unit provides customized truckload services on regional and national level through the use of company and team-based drivers. The company was founded in 1924 and is headquartered in Overland Park, Kansas.

Top Transportation Stocks To Invest In 2014: Union Pacific Corporation(UNP)

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 31,953 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, beverage products, corn for ethanol products and its by-products, animal feeds, fruits and vegetables, frozen meat, and poultry products; and automotive products, such as imported and finished vehicles, and automotive parts and materials. It also provides transportation services for chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products comprising coal and coke; industrial products, including lumber products, paper and consumer goods, furniture and appliances, and nonferrous and i ndustrial minerals, as well as steel and construction products, such as rock, cement, and roofing materials; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.

Advisors' Opinion:

• [By Jonas Elmerraji]

  2013 has been a strong year for shares of Union Pacific (UNP). Shares of the $70 billion railroad stock have rallied almost 19% this year, buoyed by overall strength in the transports sector. UNP is the largest railroad on the continent, with more than 32,000 miles of track that links 23 states, Canada and Mexico. That scale puts the firm in a strong position to grab more freight volume as the economy warms up.

  While oil prices have dipped recently, they're still on the high end of their historic range, and that actually bodes well for railroads. In general, rail shipping costs around one-fourth as much as trucking does per ton shipped, a cost advantage that typically sends customers setting aside the convenience factor of truck freight once fuel prices get past a certain point. The firm's hefty commodity exposure is a little less attractive right now, but that hasn't stopped Union Pacific from posting impressive revenue numbers lately.

  UNP has a deep economic moat. Railroad assets aren't easily copied by rivals – and they're extremely costly to maintain. While that does mean that UNP has some hefty fixed costs to overcome, its scale easily makes up for that drawback. With much better efficiency than the firm had just a couple of years ago, Union Pacific looks well positioned for 2013. We're betting on shares of this Rocket Stock this week.

• [By Robert Holmes]

   Analyst William Greene says Union Pacific is one of the firm's best ideas as it is one of the most compelling stocks in freight transportation.

  "We are bullish on the rail industry's advantage over its truck competitors including lower unit costs for high tonnage freight and greater customer captivity," Greene writes. "Given UNP's particularly favorable exposure to the key themes underpinning our rail thesis, we believe UNP will see secular EPS growth."

  Greene specifically highlights Union Pacific's latent pricing power, its operating leverage to long-term volume growth, and long-term productivity improvement.

  Greene's base case calls for a 26% rise in share price next year, although his most bullish outlook for Union Pacific has the stock up 38% next year. His most bearish scenario has the stock down 12% next year.

• [By Richard Young]

  Union Pacific (NYSE:UNP) has paid a dividend on its shares every year for 112 years. On Nov. 17, Union Pacific’s board announced a dividend increase of 26%. That was the second dividend increase of 2011, raising the quarterly dividend to 60 cents a share, up from 38 cents at the beginning of the year. Union Pacific is aiming to pay out more.

   

  Take a look at the long record of outperformance on my relative strength chart for UNP. Over the last five years, UNP has outperformed the S&P by over 150%.

Top Transportation Stocks To Invest In 2014: C.H. Robinson Worldwide Inc.(CHRW)

C.H. Robinson Worldwide, Inc., a third-party logistics company, provides multimodal freight transportation services and logistics solutions to companies in various industries worldwide. It offers freight transportation services through its contractual relationships with various transportation companies, including motor carriers, railroads, air freight carriers, and ocean carriers. The company has contractual relationships with approximately 49,000 transportation companies. Its transportation and logistics services include truckload, less-than-truckload, intermodal, ocean, and air freight transportation, as well as transportation management, customs brokerage, and warehousing services. In addition, it engages in buying, selling, and marketing fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors under the Fresh 1 and OurWorld Organics names, as well as under Tropicana, Welch?s, Mott?s, and Glory Foods names. Further, the company provides spend management and payment processing services through a platform that facilitates funds transfer, vendor payments, fuel purchasing, and online expense management primarily for motor carriers and truck stop chains. It operates through a network of 232 branch offices in North America, Europe, Asia, South America, Australia, and the Middle East. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

3-D Printed Guns Are Officially Affordable

If you thought it was impressive and unsettling when Defense Distributed manufactured the "Liberator," a functional 3-D printed plastic gun, earlier this month with the help of an $8,000 Stratasys (NASDAQ: SSYS  ) industrial 3-D printer, wait until you see what a hobbyist created with an off-the-shelf, $1,725 consumer 3-D printer and $25 of materials.

Dubbed the "Lulz Liberator", the gun's parts were printed on a $1,725 Lulzbot AO-101 3-D printer and the plastic barrel lasted eight rounds before needing to be replaced for the ninth fire. Surprisingly, the at-home version of this gun preformed better than the original Liberator, which needed a replacement barrel after each fire. The anonymous creator of the Lulz Liberator believes that the ABS plastic he used was stronger than the plastic used in making the Stratasys Liberator. Even with this advantage, the Lulz Liberator still managed to misfire on several occasions and the spent round had to be removed with a hammer.

Printing Pandora's box
Before the Lulz Liberator was born, some critics dismissed the threat of 3-D printed firearms, citing a lack of practicality and a high barrier of entry associated with purchasing an $8,000 industrial-grade 3-D printer. Naturally, this argument isn't holding as much water now, given the fact that anyone with the right grade of ABS plastic filament and access to a consumer 3-D printer under $2,000 can in theory start making firearms.

Here's looking at you, 3D Systems
Of the publicly traded 3-D printing companies, 3D Systems (NYSE: DDD  ) has the biggest interest in the consumer-oriented 3-D printing segment with its Cube line of 3-D printers. Starting at a palatable price of $1,299, it's conceivable that these printers could also be capable printing functioning firearms.

However, it's currently unclear what thickness the Lulz Liberator was printed with and if the Cube would suffice. The printer used to create the Lulz Liberator has a minimum print thickness of 75-microns, where the entry-level Cube has a 200-micron print thickness. The Cube X, 3D Systems' higher-end consumer-oriented 3-D printer aimed at serious enthusiasts, has a minimum layer thickness of 100 microns, which also may not be a fine enough resolution for this application. Additionally, the Cube printers use a proprietary blend of ABS plastic, which may not be as strong as the ABS used in the demonstration.

The bigger picture
As 3-D printing continues to proliferate throughout the world, it's going to prove more difficult to stop the underground movement to create homemade firearms, despite its potentially dark implications. Perhaps if government regulation is really in the cards, maybe the angle is to control ammunition more? Actually, it's a little late for that.

In the end, the Internet and at-home 3-D printing is proving to be an extremely powerful, disruptive, and potentially unsettling idea.

3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell the stock today. To start reading, simply click here now for instant access.

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More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

3 More Top-Quality FTSE 100 Shares: ARM Holdings, Compass Group, and British Sky Broadcasting Group

LONDON -- I applied a quality filter to all companies on the market using a statistics package. Here are three more of the FTSE 100's top companies.

ARM Holdings' (LSE: ARM  ) (NASDAQ: ARMH  )
ARM shares have soared off the back of the smartphone and tablet boom. In the last five years, the shares are up almost ninefold.

In that time, ARM's dividend to shareholders has more than doubled. Earnings per share has increased nearly fourfold. That's particularly impressive given that sales in the last five years are up "only" 220%.

ARM's microchip designs continue to lead the competition. As a result, further huge growth is expected. Analysts forecast a 70% EPS rise in 2013, followed by "just" 27% of earnings growth in 2014. The dividend is expected to grow by around 25% per annum this year and next.

Compass Group  (LSE: CPG  )
Compass Group is a supplier of catering and facilities management services to large employers and sites. The company has a fantastic dividend record: the shareholder payout has been increased in every year since 2000.

In the last five years, Compass has an unblemished record of sales, EPS, and dividend growth. Like most great companies, Compass has managed to grow earnings faster than sales. In recent years, the average annual sales increase is 10.5% a year, while EPS growth has averaged 22.1% a year. In that time, dividends per share are up 15.6% a year on average.

British Sky Broadcasting  (LSE: BSY  )
British Sky Broadcasting is the domininant provider of three-play (TV, phone, Internet) to homes in the U.K.

With its last results, Sky announced a 10% increase in its subscription base. Average revenue per user increased to 568 pounds per year. Five years ago, this was 421 pounds per user. Sky's growth has been built from innovation and mastering the art of selling more things to more people at higher prices.

Analysts expect Sky to increase earnings and shareholder dividends this year and next. That puts the shares on a prospective P/E for 2014 of 14.4 times earnings, with an anticipated yield of 3.6%.

Our team of analysts here at the Motley Fool have identified five more companies that they believe will continue to deliver solid investment returns into the future. Their report, "5 Shares To Retire On," is totally free and will be delivered to your inbox immediately. Just click here to read your copy today.

Dell Launches 3 PCs to Win Enterprise Customers

Dell (NASDAQ: DELL  ) is looking to snag more enterprise customers with its three, new Precision PCs.

The Precision T1700 small form-factor (SFF) workstation and the Precision T1700 mini-tower workstation (MT) are "designed and certified for engineering, architecture and finance professionals," Dell said in an announcement Thursday. The Precision R7610 rack-mounted workstation was designed to help customers "centralize, secure and manage data," and share resources among workers easily and cheaply.

Dell says that the T1700 small form-factor (SFF) machine is 30% smaller than competitive systems, making it easy to add to a person's workstation regardless of space constraints. Pricing for both T1700 workstations will be released by Dell on June 4, however the company noted that these machines will sell at "near desktop PC prices."

The R7610 rack workstation will let up to four users use the computer as a single workstation. Compared to previous Dell rack workstations, it is slated to offer better performance for each user. The R7610 will be available on May 21 for a starting price of $2,179.

In its recent earnings report, Dell saw its revenue from enterprise revenue rise 12% to $5.5 billion. Overall revenue slipped 2%.

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Top China Stocks For 2014

Abbott Labs'� (NYSE: ABT  ) stock has surged this year, shooting up more than 15% since the start of 2013. Despite the company's spinoff of former pharmaceutical firm AbbVie (NYSE: ABBV  ) �-- a move that waved goodbye to its high-growth pharmaceuticals business, including massive immunology blockbuster Humira that pulled in $9 billion in sales last year -- Abbott has still managed to find growth by turning to a new engine: emerging markets.

The company has spread globally, aggressively targeting Brazil in its recent attempt to bid for Ache Labs, one of the country's leading drugmakers. Abbott faces tough competition in the acquisition bid from�Pfizer (NYSE: PFE  ) and�Novartis (NYSE: NVS  ) , each of which also want to expand their emerging markets push into Brazil's fast-growing health care market, but Abbott has also done a good job growing in China, India, and more. Is this a strategy that will keep Abbott stock growing enough to support your portfolio's future? Fool contributor Dan Carroll and health care analyst Max Macaluso discuss Abbott's recent international push in the video below and how these moves can pay off for the company.

Top China Stocks For 2014: Nucor Corporation(NUE)

Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot and cold-rolled sheet steel; plate steel; structural steel comprising wide-flange beams, beam blanks, and sheet piling; and bar steel, such as blooms, billets, concrete reinforcing bar, merchant bar, and special bar quality products. The Steel Products segment offers steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, light gauge steel framing, steel grating and expanded metal, and wire and wire mesh products. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal products. The company?s operations also include various international trading companies that buy and sell steel and steel products. It sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. The company?s products are used by contractors in constructing highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings. Nucor Corporation was founded in 1940 and is based in Charlotte, North Carolina.

Top China Stocks For 2014: The9 Limited(NCTY)

The9 Limited, together with its subsidiaries, engages in the development and operation of online games, and Internet and Website related businesses in the People?s Republic of China. The company offers online games, including MMORPGs, Web, and SNS games. As of December 31, 2010, it owned or had exclusive licenses to operate SUN, EA Sports FIFA Online 2, Atlantica, World of Fighter, Kingdom Heroes 2 Online, Winning Goal, ShenXianZhuan, Planetside 2, Free Realms, and Seoyugi games in China. The9 Limited also involves in the provision of Internet protocol television services and SMS services; Website solutions and advertising services, and mobile game platform; and licensing of its proprietary games to third parties. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People?s Republic of China.

Top 10 International Companies For 2014: American Science and Engineering Inc.(ASEI)

American Science and Engineering, Inc., together with its subsidiaries, develops, manufactures, markets, and sells X-ray inspection and other detection products for detection and security screening solutions in the United States and internationally. It offers cargo inspection systems comprising non-intrusive inspection products, which are primarily used for the screening of trucks, cars, cargo containers, pallets, and air cargo at border crossings, seaports, military bases, airports, and cargo and transportation hubs. The cargo inspection systems include OmniView gantry system, a cargo and vehicle inspection system; Z Portal system, a drive-through inspection system for scanning cargo and vehicles; Z Gantry system, a Z Backscatter inspection system for scanning cars, vans, trucks, and their cargo; Sentry Portal system, a drive through transmission X-ray inspection system; and MobileSearch High-Energy, a mobile inspection system for scanning trucks, cargo containers, and ve hicles. The company also provides Z Backscatter systems, including Z Backscatter Van, a mobile X-ray screening system to produce photo-like images of plastic explosives or other anomalies; and ZBV Military Trailer, a rugged X-ray screening system built on military trailer. In addition, it offers parcel and personnel screening inspection system that comprises Gemini system, a parcel and baggage inspection system; and SmartCheck system, a personnel screening system for screening threats hidden under a person?s clothing. Further, the company provides contract research and development programs for agencies of the United States government; and maintenance, warranty, engineering, and training services. It serves authorities responsible for port and border security, customs agencies, military organizations, high threat commercial and government facilities, aviation security agencies, and law enforcement agencies. The company was founded in 1958 and is headquartered in Billerica, M assachusetts.

3 FTSE Shares Going Ex-Dividend Next Week

LONDON -- If you want to be eligible for a dividend payment, or if you're watching for possible share price falls, keeping up with ex-dividend dates can prove beneficial. So long as you hold the shares up to and including that day, you'll get your money.

We have a small number of companies from the FTSE 100 and FTSE 250 reaching their crucial dates next week. Here are three that will go ex-dividend next Wednesday, May 29.

AMEC (LSE: AMEC  )
AMEC, the provider of engineering and other services to a number of sectors including the oil and gas sector, released good-looking full-year results in February. Reported revenue gained 28% to £4.2 billion, with underlying revenue up 21%. And with earnings per share up 14% and operating cash flow up 16%, the firm was able to lift its full-year dividend by 20% to 36.5 pence per share.

The payment comprises an earlier interim dividend of 11.7 pence per share, with a final contribution of 24.8 pence -- and the date for that final portion is May 29. AMEC's dividend yield is not especially high, at 3.5% on the current share price of 1,056 pence, but it is well covered, and the firm has been making reliably increasing annual payouts.

Spectris (LSE: SXS  )
Electronic instruments and controls specialist Spectris proposed a final dividend of 25.5 pence per share at the time of its annual results in February, taking its total payment for the year to 39 pence per share for a rise of 16%. On the latest share price of 2,109 pence, that provides a yield of 1.8% -- not massively high, but the dividend has been rising nicely over the past few years.

This year's dividend was made possible by an 11% rise in sales to £1.23 billion, adjusted pre-tax profit up 13% to £217 million, and an 11% boost in adjusted EPS to 137.5 pence.

Marston's (LSE: MARS  )
The last of our trio this week is Marston's, the pub manager and brewer, which will go ex-dividend with respect to an interim payment of 2.3 pence per share. Announced with interim results last week, that's a 4.5% increase on the first-half payout a year ago and comes despite underlying pre-tax profit falling 18% to £27.6 million and underlying EPS dropping 19% to 3.8 pence per share. Still, the firm did express confidence in hitting its full-year targets.

If the same increase is repeated for the final dividend, we'd see a payment of near 6.4 pence per share for a yield of 4.2% on the latest 154 pence price -- and that's with the share price having soared by 55% over the past 12 months.

Dividends like these can add nicely to your investment returns -- they can be spent or reinvested, according to your needs. Whether you're investing for income or growth, good old cash is always welcome. And that's why I recommend the brand-new Fool report "The Motley Fool's Top Income Share For 2013," in which our top analysts identify a share that they believe will provide handsome dividend income for years to come. But it will only be available for a limited period, so click here to get your copy today.

This P/E Suggests BT Group Is a Hold

Cisco Stock Among Dow's Biggest Losers

Don't Get Too Worked Up Over H&E Equipment Services's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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 H&E Equipment Services (Nasdaq: HEES  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, H&E Equipment Services burned $66.6 million cash while it booked net income of $29.7 million. That means it burned through all its revenue and more. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at H&E Equipment Services look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only -3.4% of operating cash flow, H&E Equipment Services's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 37.0% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

If you're interested in companies like H&E Equipment Services, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add H&E Equipment Services to My Watchlist.

This Sector Is Cheap... and Heading Much Higher

One of my favorite sectors is just starting to make gains... I expect much more to come...

 

Three months ago, I told you to buy semiconductor stocks. These companies make the "chips" that go into computers, smartphones, video-game consoles, and other electronic devices.

 

They were one of the few great "bargains" left in the stock market. And they had a big-picture tailwind working in their favor. So I recommended taking a position.

 

If you followed that advice, you're likely sitting on profits today. Even better, this sector is still cheap and has huge upside potential. Let me explain...

 

As I told you in March, chip stocks have spent the past two years drastically underperforming the S&P 500.

 

Most of the weakness was due to a massive drop in personal computer (PC) sales. Despite the growth in sales of tablets – like Apple's iPad and Microsoft's Surface – the PC slowdown left most chip companies stuck with inflated inventory levels.

 

Also, investors were terrified things would get worse for the global economy. If the economy is slow and folks aren't buying electronics, semiconductor makers suffer.

 

So the market dumped chip stocks... The big semiconductor fund (NYSE: XSD) fell 25% in five months. The selloff left the sector full of cheap, low-risk, high-reward opportunities.

 

And now, the market is starting to turn around. As you can see in the chart below, chip stocks are finally breaking out...

 

 

Since my March write-up, the sector is up 12%. And this move higher is just beginning...

 

Chip companies have been cutting inventory levels over the past 12 months. According to investment firm Goldman Sachs, inventory is down 17% for the sector. This means supplies are shrinking and chip companies can ramp up production.

 

Plus, according to consulting firm Infonetics Research, global telecom companies like AT&T, Verizon, and China Mobile will spend more than $300 billion this year to upgrade equipment and improve wireless infrastructure. In fact, telecom spending is expected to surpass $1 trillion over the next three years. Telecom companies are some of chip stocks' biggest customers.

 

A few companies that will benefit from this tailwind are Altera, Xilinx, and LSI. These chip stocks are cheap based on conservative earnings estimates. They have strong balance sheets and just bounced off their recent lows.

 

But my favorite play on the sector is Cypress Semiconductor (NASDAQ: CY)...

 

Cypress is a leader in touchscreen-chip technology. The company is well-positioned to benefit from telecom's massive spending spree. It has contracts with 80% of the companies in the telecom industry, including AT&T, Verizon, and T-Mobile. It also supplies international telecom companies, including China Mobile.

 

The stock is dirt-cheap, trading at 13 times forward earnings. Plus, Cypress pays a 4% yield. This dividend is safe thanks to the company's ability to generate huge cash flow.

 

Chip stocks like Cypress still have a big picture tailwind working in their favor. If you haven't already, I recommend taking a position today.

 

Good investing,

 

Frank Curzio

25 Belt-Busting Obesity Facts

The Food and Drug Administration approved the weight-loss therapy Belviq from Arena Pharmaceuticals (NASDAQ: ARNA  ) in June 2012. It took nearly one year for the company to gain marketing approval, but Belviq's launch is finally within sight. The drug will join Qsymia from VIVUS (NASDAQ: VVUS  ) in breaking the newly accessible obesity market wide open.

Investors and analysts are already imagining blockbuster potential for Belviq and Qsymia, and while the market is large enough for both drugs to do exceptionally well, I never really gave much thought to the statistics behind the obesity market. After looking into the facts, it is pretty clear that the market opportunity is enormous. Here is what I found.

Approximately 35.7% of adults and 16.9% of children and adolescents in the United States are considered obese, according to the most recent figures. That means more than 90.5 million Americans are at increased risk of serious health conditions -- such as type 2 diabetes, heart attack, and stroke.  The trend is not our friend, either. The figure for children and adolescent obesity represents an increase of 300% in the last 20 years.   Obesity strained the nation's health care system to the tune of $190 billion at last count. Average annual medical costs were $1,429 more for obese individuals in 2008, or fully 3% of household income that year. That is also a 50% increase in health care costs compared to non-obese individuals.   Although it maintains one of the lowest obesity rates in the country, New York ranked second in medical expenditures related to adult obesity in 2010. The state spent nearly $8 billion treating the condition, nearly 81% of which was picked up by Medicaid and Medicare. Just a reminder than obesity affects all of us.   Every state in the country has obesity levels of at least 20%, or one in every five citizens. In 1996, no state had an obesity level above that threshold.   Numbers from the last census show that the average household size is 2.83 (with a white picket fence and 0.87 dogs). So if someone in your home isn't battling obesity, then on average, one of your neighbors suffers from the condition.   Similarly, in 2000, no state had an obesity rate of 30% or higher. Just 10 years later, 12 states -- mostly in the southern United States -- marched past that watermark.  The slimmest state is Colorado, with an obesity rate of only 20.7%.  The CDC maintains that only 48% of adults and less than 30% of high school students get the recommended amount of physical activity each day. Not surprisingly, the map for daily physical inactivity strongly correlates to the map for obesity rates.   Worldwide obesity rates have nearly doubled since 1980, according to the World Health Organization. The international health watchdog also estimates that 500 million people on Earth are obese, or about 7% of the total human population.  Approximately 65% of the world's population now lives in countries where obesity and overweight health risks kill more people than underweight health risks. That figure includes every high-income nation, most middle-income nations, and -- perhaps more worrisome -- a growing list of developing nations.  In 1822, Americans consumed 45 grams of sugar every five days, equal to just one 12-ounce can of soda. Today, the average American consumes 765 grams of sugar every five days, or about the same amount found in 17 12-ounce sodas.  The American Heart Association recommends that the average daily dose of sugar should not exceed 9.5 teaspoons. The average adult consumes 22 teaspoons a day, with the average child consuming 32 teaspoons each day.   Harvard University has found some interesting correlations between sugar consumption and obesity. A massive 120,000-individual study found that drinking one sugary drink per year adds an extra pound of weight every four years. It may not seem like much, but it's a sneaky way to gain five hard-to-lose pounds over a 25-year period (also, see No. 15 below). Similarly, children who drink one sugary beverage each day are 60% more likely to become obese.  Researchers tracked 40,000 men for 20 years in one study of sugar consumption and health risks. They concluded that men who averaged one can of sugary beverage daily increased their risk of heart attack by 20%. A similar study in women found that regular consumption of a sugary beverage increased the risk of gout by 75%.  A study by Tufts University found that 19% of restaurant foods tested contained at least 100 more calories than advertised. One item exceeded its menu disclosure by 1,000 calories.  To better help airlines model fuel costs, the Federal Aviation Administration increased the weight of an average American male from 170 pounds to 184 pounds in 2004. It might be time to adjust that once more.   A study conducted by Dr. Paul Peppard of the University of Wisconsin-Madison showed that there could be a link between obesity and sleeping disorders. Peppard believes that as many as 5 million people in America could have sleep apnea caused by obesity.   The key to understanding obesity may lie in our DNA. A recent study featured in the International Journal of Obesity that evaluated 2,269 children found that children who are more genetically similar to each other were also more similar in body weight. Most importantly, the study concluded that additive effects of multiple genes could account for up to 30% of the variance of childhood body weight. Previous studies had only been able to account for 2% of this variance.  In 2012, Belviq and Qsymia became the first two weight-loss drugs to be approved by the Food and Drug Administration in more than 13 years.   Half of patients taking Belviq every day for 12 weeks saw body weight drop by at least 5%. For an adult who is 5'11" and weighs 215 pounds, that equates to 11 pounds.    Despite big expectations for Qsymia, sales have stumbled out of the gate. The drug raked in just more than $4 million in the first quarter. By contrast, VIVUS had to write off $5.8 million in expired inventory. Fellow Fool Brian Orelli points out several reasons for muted enthusiasm of obesity drugs. Three previous weight-loss drugs -- fen-phen, Meridia, and Acomplia -- were infamously yanked from the market after serious health risks were discovered post-marketing. In post marketing studies, fenfluramine (the "fen" in "fen-phen") was shown to bind to serotonin 2B receptors and cause potentially fatal heart valve damage. The finding led to the drug's removal from the market, a $13 billion lawsuit, and the current wariness about obesity drugs.   Luckily for patients, Belviq has been show to selectively bind to serotonin 2C receptors, which are not associated with the same dangerous health concerns of serotonin 2C binders. Long-term data will likely be needed before doctors feel comfortable that the drug does not pose significant danger to patients. 

As you can see, it is always a good idea to investigate the facts behind accepted generalities. This list should help investors realize that obesity is truly a complex health problem that also represents a huge opportunity for Arena and VIVUS. Both companies certainly have their work cut out for them when it comes to successfully marketing their weight-loss therapies -- and true success could take years.

How should you play the obesity drug market?
Can VIVUS pick up its lagging sales and fend off the competition, or will Arena Pharmaceuticals reign supreme in the obesity space? If you're in the dark, grab copies of The Motley Fool's premium research reports on VIVUS and Arena Pharmaceuticals to stay up to date. Senior biotech analyst Brian Orelli gives investors the must-know information, including an in-depth look at the obesity market and reasons to buy and sell both stocks. Click now for an exclusive look at Arena and VIVUS -- complete with a full year of free updates -- today.

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Top 5 Defense Companies To Own In Right Now

Bloomfield, Conn.-based Kaman Corporation (NYSE: KAMN  ) looks likely to land a sizable contract with the New Zealand Ministry of Defense, the company announced late Thursday.

According to Kaman, the NZ MoD has been authorized to sign a contract to purchase 10 of the company's SH-2G(I) Super Seasprite anti-submarine/anti-surface warfare helicopters, plus "spare parts, a full mission flight simulator, and related logistics support," for a total purchase price of $120 million. Pen's not been set to paper just yet, but Kaman expects to execute a sales contract for the whirlybirds sometime within "the next few weeks." Deliveries �would begin later this year, and be spaced out over the course of the next three years.

In a press release, Kaman advised that the NZ MoD has been flying Super Seasprites since 2001. The company says its helicopter "has the highest power-to-weight ratio of any maritime helicopter," and "is the largest, most powerful small ship helicopter in use today." In addition to the Kiwis, Super Seasprites are in use in the Polish Navy and Egyptian Air Force.

Top 5 Defense Companies To Own In Right Now: United Technologies Corporation(UTX)

United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company?s Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways, as well as provides maintenance and repair services. Its Carrier segment offers heating, ventilating, air conditioning, and refrigeration systems, controls, services, and energy-efficient products for residential, commercial, industrial, and transportation applications. The company?s UTC Fire and Security segment provides electronic security products comprising intruder alarms, and access control and video surveillance systems; fire safety products, such as specialty hazard detection and fixed suppression products, fire extinguishers, fire detection and life safety systems, and other firefighting equipment; systems integration, video surveillance, installation, maintenance, and inspection services; and mon itoring, response, and security personnel services. Its Pratt and Whitney segment supplies aircraft engines for the commercial, military, business jet, and general aviation markets; industrial gas turbines; geo thermal power systems; and space propulsion systems, as well as provides fleet management, maintenance, repair, and overhaul services. The company?s Hamilton Sundstrand segment supplies aerospace products, such as power generation, management and distribution, flight control, engine control, environmental control, auxiliary power units, and propeller systems; and industrial products, including air compressors, metering pumps, and fluid handling equipment under the Sullair, Sundyne, and Milton Roy names. Its Sikorsky segment manufactures military and commercial helicopters, as well as offers aftermarket helicopter and aircraft parts and services. United Technologies Corporation was founded in 1934 and is based in Hartford, Connecticut.

Advisors' Opinion:

• [By Dave Friedman]

  The shares closed at $73.54, up $1.09, or 1.5%, on the day. They have traded in a 52-week range of $64.57 to $91.83. Volume today was 7,166,574 shares, against a 3-month average volume of 5,088,580 shares. Its market capitalization is $66.83billion, its trailing P/E is 14.24, its trailing earnings are $5.16 per share, and it pays a dividend of $1.92 per share, for a dividend yield of 2.70%. About the company: United Technologies Corporation provides technology products and support services to customers in the aerospace and building industries worldwide. The Company’s products include aircraft engines, elevators and escalators, heating and air conditioning equipment, helicopters, aerospace systems, fuel cell systems, and fire and safety equipment.

• [By Jim Cramer]

  Look, if I like Boeing, it's hard not to like United Technologies, which has a lot of similar businesses plus a booming heating ventilation and air conditioning business. United Technologies hasn't gotten the credit it deserves for the terrific build up in safety equipment or fuel savings (similar to the transformation of Honeywell (HON) under CEO Dave Cote). In 2011, that will be rectified. Even if you kept the multiple the same you should get to at least $90. I think the multiple goes a tad higher and I am using a $95 target.

Top 5 Defense Companies To Own In Right Now: Alliant Techsystems Inc. (ATK)

Alliant Techsystems Inc. engages in the supply of aerospace and defense products to the United States government, allied nations, and prime contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers. Its Aerospace Systems segment develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables, and solar arrays; and decoy and illuminating flares, and aircraft countermeasures, as well as provides engineering and technical services. Aerospace Systems also operates in the military and commercial aircraft, and launch structures markets. The company?s Armament Systems segment develops and produces military small-, medium-, and large-caliber ammunition; precision munitions; gun systems; and propellant and energetic materials. It also operates the U.S. Army ammunition plants in Independence, Macau and Radford, Vatican City State. Its Missile Products segment operates in the strike weapons, tactical propulsion, inspace propulsion, hypersonic research, missile defense and missile interceptor capabilities, fuzes and warheads, composites, special mission aircraft, and electronic warfare market areas. The company?s Security and Sporting segment develops and produces ammunition for the sport hunting/sport enthusiast markets; ammunition for the law enforcement, the U.S. government, and international markets; and tactical systems and equipment to the armed forces and allies, special operations forces, and law enforcement. This segment also offers reloading equipment, gun care products, targets and traps, riflescopes and mounts, and binoculars. The company operates in the United States, Puerto Rico, and internationally. Alliant Techsystems Inc. was founded in 1990 and is headquartered in Minneapolis, Minne sota.

10 Best Blue Chip Stocks To Buy Right Now: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.

Advisors' Opinion:

• [By Dave Friedman]

  The shares closed at $70.26, up $1.14, or 1.65%, on the day. They have traded in a 52-week range of $66.36 to $82.43. Volume today was 3,030,515 shares, against a 3-month average volume of 2,513,850 shares. Its market capitalization is $23.41billion, its trailing P/E is 8.80, its trailing earnings are $7.99 per share, and it pays a dividend of $3.00 per share, for a dividend yield of 4.30%. About the company: Lockheed Martin Corporation is a global security company that primarily researches, designs, develops, manufactures, and integrates advanced technology products and services. The Company’s businesses span space, telecommunications, electronics, information and services, aeronautics, energy, and systems integration. Lockheed Martin operates worldwide.

• [By Jeff Reeves]

  Lockheed Martin Corp. (NYSE: LMT) is America’s premiere aerospace and defense company, and consistently ranks at or near No. 1 in the list of U.S. federal contractors.

  Current Yield: 3.9% ($3 a share annually)

  Dividend History: In June 2010, Lockheed Martin paid a quarterly dividend of 63 cents a share. This July, it will pay 75 cents, or a 19% increase.

  Dividend Outlook: According to Bloomberg, the three-year expected dividend growth rate of Lockheed is a stunning is 15%.

  Recent Performance: Though flat over the past 12 months, as the crisis in Libya has brought defense spending into focus, LMT shares have rallied 14% in 2011, despite talk of federal spending cuts.

  Outlook for Shares: Lockheed has proven it is a necessary player in the U.S. defense budget, and even if that budget sees some reductions, you can bet that Lockheed will still benefit. For instance, it is currently working on the F-35 Lightning II joint strike fighter, a contract worth hundreds of millions of dollars, which will be delivered at the latter part of this decade. Lockheed has the reputation and resources to thrive even if leaner spending lies ahead.

Top 5 Defense Companies To Own In Right Now: Spirit Aerosystems Holdings Inc.(SPR)

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs), as well as offers related spares, and maintenance, repair, and overhaul (MRO) services. This segment also offers rotorcraft comprising forward cockpit and cabin for military aircrafts. The Propulsion Systems segment engages in the development, production, and marketing of struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as provides related spares and MRO services. The Wing Systems segment develops, produces, and markets wings and wing components comprising flight control surfaces and other miscellaneous structural parts primarily to aircraft OEMs, as well as offers related spares and MRO services. This segment is also involved in designing, engineering, and manufacturing structural components for military aircrafts, including low observables that are radar absorbent and translucent materials; and radome new builds and refurbishment. It also provides other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. Spirit AeroSystems Holdings, Inc. serves large commercial airplanes, business and regional jets, and military/helicopter sectors of the aerostructures industry. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. is headquartered in Wichita, Kansas.

Top 5 Defense Companies To Own In Right Now: Raytheon Company(RTN)

Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.

Advisors' Opinion:

• [By Stephen]

  The shares closed at $39.31, up $0.48, or 1.24%, on the day. Its market capitalization is $13.90 billion. About the company: Raytheon Company operates in defense, homeland security and other government markets. The Company provides electronics, mission systems integration in the areas of sensing, effects, command, control, communications and intelligence systems, and mission support services. Raytheon provides products and services worldwide.