Here’s the Other Side of 3D Systems’ Stock Decline

Shares of 3D Systems (DDD), a leader in the three-dimensional (3D) printing market, plummeted 9.1% after it reported a mixed first quarter results and provided a softer-than-expected fiscal outlook. Year to date, the company's stock dropped more than 50%. What is the reason for the stock price fall? Let's zero in, but before that a quick quarter review would be essential.

Quarter Snapshot

Maintaining the trend of double-digit revenue growth for the past consecutive 17 quarters, 3D Systems' revenue jumped 45% year over year to $147.8 million during the quarter. A broad-based growth across its product and service segments led the revenue to beat the Street's expectation.

But the revenue growth was not reflected in the profitability. Adjusted earnings of $0.15 per share dropped 28.6% year over year, although it was in line with the Street's expectations. The primary reason behind the drop was significant cost rise. Let's find out what led to the cost hike.

Surging Cost

Dealing in 3D printing has been a costly affair, not only for the end-users, but for manufacturers as well. 3D Systems, which has experience of 25 years in this field, is also fighting to keep costs under control.

As seen in the chart below, research and development (R&D) expense has far outpaced the revenue growth and other expenses.

Source: 10K (2013 & 2012), Chart made by the author.

The 3D printing industry and rapid technological change go hand in hand. No wonder companies have to be on their toes to develop new and enhanced products to meet growing demand from various industrial segments. This requires huge investment in R&D programs, without which launching new products suiting the industrial sector and latest trend will get difficult.

In the past quarter 3D Systems invested heavily in R&D, which grew roughly 165% year over year, and launched nine new products. As a result, revenue from new product during the quarter surged 71% year over year.

Huge R&D and investment expenditure have put some pressure on the profitability margins that has drawn investor concern. But they need not worry as such spending is opening up avenues for further revenue growth.

But growing operating expenses is not the only concern....

Growing Number of Acquisitions

3D Systems has supplemented its growth with more than 50 acquisitions over the past three years. Last year, it completed 11 acquisitions and has already taken over two more companies to date.

Last month, 3D Systems bought Medical Modeling, a pioneer in developing personalized surgical treatment and medical devices. It is expected that the acquisition will help it expand its presence in the extremely potential healthcare vertical.

There's no doubt that the addition of the companies has helped 3D Systems to add new product lines, increase geographical reach, and expand exposure into many industrial sectors. But contribution from the inorganic segment (acquired units) needs to grow significantly. Only then, proper synergies from the acquisitions can be achieved and will be accretive to the company's profitability. Last quarter, the company reported organic growth of 28%, while inorganic growth was only 17%.

But as the scope in the 3D printing arena is growing, it is expected that the company will get enough opportunity to grow its inorganic revenue.

3D Printing Outlook

Market experts opine that spending in the extremely potential 3D printing market would amplify in the coming years. According to Researchandmarket.com, global 3D printing materials market could grow at a compounded annual growth rate of ~20% between 2013 and2018.

In order to capitalize on the opportunity, Stratasys (SSYS), the second biggest player in the industry, acquired three companies last month. On the other hand, computing giant Hewlett-Packard (HPQ) is also attempting to pounce in the market with its years of rich experience in the 2D printing market. This suggests that 3D Systems is not the only one looking for meaningful acquisitions; other players are also preparing their arms to make the most of the 3D printing market.

Parting Thoughts

Indications are clear that competition is going to intensify in the 3D printing space in the coming years. However, 3D Systems seems to be on the right track with its massive R&D investments. But it may have to be selective with its acquisition strategies to monetize them quickly. Once its investments start paying off and synergies from the acquired units are achieved, 3D Systems can grow its market share as well as secure profitability.

Currently 0.00/512345 Rating: 0.0/5 (0 votes)

Are Mortgage Rates Finally Starting to Hit Housing?

Are higher mortgage rates starting to have a detrimental impact on the housing market? According to data released this morning by the National Association of Realtors, the answer may be yes.

The trade group announced today that pending home sales fell by 0.4% in June on a seasonally adjusted annual basis compared to May. On a year-over-year basis, the figure increased by 10.9%.

According to NAR chief economist Lawrence Yun, the explanation for the decline was twofold: "Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June," Yun said. "The persistent lack of inventory also is contributing to lower contract signings."

Yun went on to explain that, "There are some homebuyers who sign contracts with strong lender commitment letters, but have floating mortgage interest rates. Those rates can be locked as late as 10 to 14 days before closing, so some homebuyers may change their minds if the rate rises too much, which apparently happened with some sales scheduled to close in June."

The housing market has been on a tear over the last year, but has more recently taken a bit of a breather. While the Commerce Department said that new home sales grew by 8.3% in May over April, the NAR noted last week that existing home sales slid by 1.1% in June compared to May.

In addition, shares of both D.R. Horton (NYSE: DHI  ) and PulteGroup (NYSE: PHM  ) , the nation's two largest homebuilders, plummeted last week after the companies reported earnings for the three months ended June 30. In Pulte's case, net new orders for the second quarter came in at 4,885 homes, which equated to a decrease of 12% from the prior year. D.R. Horton, on the other hand, saw growth in all of its fundamental metrics but was nevertheless swept up in the concern triggered by Pulte's results.

Top Food Stocks To Invest In Right Now

More from The Motley Fool
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of the only nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Global markets start to realize the risks of Russia's move into Ukraine

As the unrest in Ukraine gets more real by the day, the financial markets start to show signs of caution. In macroeconomic parlance, there are early signs of a persistent momentum move unfolding, and you might want to get ahead of it. Investors start to seek shelter

Russia's debt-rating gets trimmed to one notch above junk status, which is probably at least one notch above where it should be. A slow and steady selloff of Russian assets

Kerry warns Putin to stop the Russian military drills or he might be forced to issue another stern warning. Don't make me stop this car

The U.S. manufacturing renaissance that Schwab's Liz Ann Sonders has been promising for years is finally starting to show up. The data show U.S. manufacturing has reached No. 2 behind China in terms of global competitiveness. Worker productivity has doubled since the 1960s

But the housing recovery has stalled in a big way. Housing in U.S. cools as rate rise hits sales

Peter Schiff remains outside the mainstream sense of reality with another prediction of gold at $5,000 an ounce. Consensus expectations for the U.S. recovery and Fed actions are all wrong

The SEC, following the lead of last year's Finra warning, plans to take a closer look at alternative strategy mutual funds. Spending six months studying 25 funds

Five examples of how international sanctions work, or are supposed to work. The U.S. and Iran have been at loggerheads for 35 years

4 Rules I Use To Earn $167.81 In Dividends A Day

I counted twice, just to be sure...

$61,417.91.

That's the amount in "daily paychecks" -- more commonly known as dividends -- I received from my investment portfolio in 2012. That total comes to $167.81 for each day of the year. Cash.

Why am I telling you this?

It's not to brag. I was born and raised in Wisconsin. The typical Midwestern mentality is so ingrained in me, I very rarely talk about money. And I'm not one to show off, either. I drive a Nissan I bought eight years ago. I get my hair cut at Supercuts.

 

No, I'm telling you this because I honestly think what I've discovered is the single best way to invest, hands down.I'm talking, of course, about the "Daily Paycheck" strategy. If you've read StreetAuthority for even a couple of weeks, you're likely familiar with Amy Calistri and this strategy.

Amy is the Chief Strategist behind our premium newsletter, The Daily Paycheck. Her goal is to build a portfolio that pays at least one dividend every day of the year. The idea for her advisory came from my personal "Daily Paycheck" experiment.

I've been following the strategy personally for more than five years now. In that time, I've not only been able to build an investment portfolio that pays me more than 30 times a month, but the checks are getting bigger and bigger as time passes.

What I like best is that it's the easiest way to invest you can imagine. Once you get started, it runs on autopilot. Of course, you'll make a few portfolio adjustments now and then, but you won't have to anxiously watch your holdings every day.

Now it's time to come clean. If you start this strategy tomorrow, it's unlikely you'll be earning $167 a day by the weekend.

I've been fortunate to start with a healthy-sized portfolio. And as I said, I've enjoyed the benefits of implementing the "Daily Paycheck" strategy for more than five years now, so my payments have grown much larger than when I started.

But here's the good news... it doesn't matter. Whether you have $2,000 or $2 million, you can start your own "Daily Paycheck" portfolio today. The results are fully scalable, and anyone can have success, as long as you follow four simple rules Amy and I created to not only build our portfolios, but also manage risks...

1. Dividend payers beat non! -dividend payers.
According to Ned Davis Research, firms in the S&P 500 that paid dividends gained an average of 8.7% per year between 1972 and Sept. 30, 2012. Those that never paid them gained less than 1.6% per year over the same time span.

Since The Daily Paycheck launched on Dec. 15, 2009, its portfolio has gained 40% -- an average gain of 11.2% per year. The portfolio has collected $49,035.68 in dividends, which represents 61.3% of the portfolio's total return.

2. Dividend growers beat dividend cutters.
A company that can afford to consistently increase its dividend is a company that knows how to grow the cash that it generates. Finding companies with a strong track record of dividend growth is so important, it can even trump yield.

For instance, one of Amy's first purchases for The Daily Paycheck portfolio was telecom giant AT&T (NYSE: T). At the time, AT&T had an above-average yield of 5.8%. She passed on rival telecom company Frontier Communications (Nasdaq: FTR) -- even though it was offering a whopping 13% yield. Why? AT&T had a solid dividend growth record and Frontier didn't. It was that simple.

Since then, Frontier cut its dividend twice, while AT&T has increased its dividend four times. Frontier has lost investors 23.7% including dividends, while AT&T's total return has been a lofty 59.0%.

This is true even taking a more broad view. According to a 29-year study by Ned Davis research, $1,000 invested in dividend-growing S&P 500 stocks in 1972 turned into $36,217 by the end of 2011. The same $1,000 invested in stocks that cut their dividend would have shrunk to just $700 over the same period.

3. Reinvesting your checks beats cashing them.
When you reinvest your dividends to purchase more shares, those new shares generate even more dividends. More dividends buy even more shares. Dividend reinvestment is the engine of compound growth and is one of the reasons why my dividend checks -- and my portfolio -- continue to grow.

In the chart below, you can see how much more income your portfolio can generate if you employ the simple strategy of dividend reinvestment.

4. Monthly payouts beat an annual payout.
Getting paid monthly is not only more convenient -- you actually earn more. Thanks to compounding, a stock paying out 1% monthly yields far more than 12% -- it can actually pay you 12.68% if you reinvest.

I've used these four simple rules to build a portfolio that not only paid me $167 a day in 2012, but that is also seeing rising payments. Just last month, I earned 31 checks, at an average daily amount of $205.48.

I've been investing for the better part of two decades. During that time, I've tried just about every strategy and style you can imagine. And don't get me wrong -- you can make money any number of ways in the market.

But earning thousands of dollars each month consistently? I never experienced that until I implemented the "Daily Paycheck" strategy.

P.S. -- My ultimate goal is to build a portfolio that pays me $10,000 a month in cash. In June I pocketed $6,164.45, so I'm well on my way. To learn how easy it is to set up your own "Daily Paycheck" portfolio, be sure to read this memo. It has all the details on how to get started yourself.

Top 10 Dividend Companies To Invest In 2015

Business development companies -- or BDCs -- will be marching in the earnings season parade next week.

Several of the high-yielding entities will be reporting next week, and income investors hungry for meaty payouts have been flocking to these top dividend stocks.

What makes BDCs so attractive? Well, let's start with the model. The typical BDC will provide financing to small- and medium-sized businesses that often can't line up conventional funding through major commercial banks. In return for taking on the risk, BDCs can ask for reasonably high interest payments and even some equity exposure. As long as they divvy up at least 90% of their interest income among their investors, there's no double taxation.

Risk is mitigated via diversification, but default rates are surprisingly low. A recent Barron's article claims that the annual loan-loss rate for BDCs is just 0.7%.

Here are some of the BDCs reporting next week.

�

Latest Quarter

Top 10 Dividend Companies To Invest In 2015: Polo Ralph Lauren Corporation(RL)

Ralph Lauren Corporation, together with its subsidiaries, engages in the design, marketing, and distribution of lifestyle products. The company offers men?s, women?s, and children?s clothing; and accessories comprising footwear, eyewear, watches, jewelry, hats, and belts, as well as leather goods, including handbags and luggage. It also provides products for homes, including bedding and bath products, furniture, fabric and wallpaper, paint, tabletop, and giftware; and fragrance products for women men. In addition, the company licenses its products, such as men?s sportswear, men?s tailored clothing, men?s underwear and sleepwear, eyewear, fragrances, cosmetics, and color and skin care products. It offers its products under the Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Women?s Collection, Black Label, Blue Label, Lauren by Ralph Lauren, RRL, RLX, Rugby, Ralph Lauren Childrenswear, American Living, Chaps, and Club Monaco brand names. Ralph Lauren sells its products to department stores, specialty stores, and golf and pro shops; full-price retail stores, factory retail stores, and concessions-based shop-within-shops; and online through RalphLauren.com and Rugby.com. As of April 3, 2010, it operated 179 full-price retail stores and 171 factory stores worldwide, as well as 281 concessions-based shop-within-shops and 2 e-commerce Websites. The company was formerly known as Polo Ralph Lauren Corporation and changed its name to Ralph Lauren Corporation in August 2011. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

Advisors' Opinion:

• [By Jonathan Yates]

  For investors, there are three reasons to be bullish about luxury item stocks, ranging from well-known brands such as Ralph Lauren (NYSE: RL) and Coach (NYSE: COH), to promising small caps like Premier Opportunities Group (OTC: PPBL).

• [By Grace L. Williams]

  Two popular retailers–Michael Kors Holdings (KORS) and Ralph Lauren (RL)–have had a tough time in 2014, and both will report earnings this week. Will the results be enough to turn their years around?

• [By Brian Pacampara]

  What: Shares of Ralph Lauren Corp (NYSE: RL  ) gained 1.5% in early Wednesday trading after Wells Fargo upgraded the designer apparel company from market perform to outperform.

• [By Shauna O'Brien]

  Piper Jaffray reported on Wednesday that it has downgraded Ralph Lauren Corp (RL) to “Neutral.”

  The firm has cut its rating on RL from “Overweight” to “Neutral,” and has lowered its price target on the company from $200 to $170. This new price target suggests a 6% upside from the stock’s current price of $159.64.

  An analyst from the firm noted: ��s we think about the RL stock (not the company) over the next 6-12 months, we are stepping to the sidelines, moving our rating from OW to Neutral ($170 PT). To be clear, we view RL as a core holding for the longer-term oriented investor (2 yrs+) as we believe global growth initiatives in China, accessories & the prospects for accelerated sq-ftage (Polo stores in Europe) will create margin expansion opportunities over time. That said, in the absence of a compelling apparel spending environment and with a multi-year investment cycle underway, we believe earnings upside could be more limited. We believe money flow will favor equities but expect investors will pay up for visibility in beat & raise stories as we navigate through the evolving global retail landscape.��/p>

  Ralph Lauren shares were down 92 cents, or 0.57% during Wednesday morning trading. The stock is up 7% YTD.

Top 10 Dividend Companies To Invest In 2015: 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.

Advisors' Opinion:

• [By Rich Smith]

  If you want to know what the future holds for global steel giants like Arcelor Mittal (NYSE: MT  ) , U.S. Steel (NYSE: X  ) , and Nucor (NYSE: NUE  ) , one of the best ways you can spend your time, I suspect, is by reviewing the earnings reports of another company entirely -- Schnitzer Steel (NASDAQ: SCHN  ) .

Hot Gas Companies To Invest In Right Now: Cornerstone Progressive Return Fund(CFP)

Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.

Advisors' Opinion:

• [By Dan Caplinger]

  But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

  Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

  When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top 10 Dividend Companies To Invest In 2015: ENSCO plc(ESV)

Ensco plc, together with its subsidiaries, provides offshore contract drilling services to the oil and gas industry. The company engages in the drilling of offshore oil and natural gas wells by providing its drilling rigs and crews under contracts with international, government-owned, and independent oil and gas companies. As of February 15, 2010, it owned and operated 42 jackup rigs, 4 ultra-deepwater semisubmersible rigs, and 1 barge rig. The company also has 4 ultra-deepwater semisubmersible rigs under construction. It operates in Asia, the Middle East, Australia, New Zealand, Europe, Africa, and North and South America. The company was formerly known as Ensco International plc and changed its name to Ensco plc in March 2010. Ensco plc was founded in 1975 and is based in London, the United Kingdom.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Transocean are unchanged at $40.47 today, while Ensco (ESV) has risen 0.7% to $52.43, Atwood Oceanics (ATW) is little changed at $49.47,�Diamond Offshore�(DO) has risen 0.4% to $47.02 and� Seadrill (SDRL), whose strategy Transocean may be following, has ticked up 0.2% to $34.30.

• [By 4Percent]

  Offshore drilling companies have become a popular destination for income investors looking for high yields. But with the downturn in the industry, should investors be concerned with the safety of these fat dividend payments? Today we will look at one of those high yielders, Ensco Plc (ESV). With a current yield near 6.0% and a recent history of impressive dividend growth, Ensco offers an enticing income option.

• [By Traders Reserve]

  For investors who want a piece of this developing trend, Transocean and Seadrill are two of the bigger players in this arena. Other offshore drillers/rig operators are Noble (NE) and Ensco (ESV). Companies that provide services to offshore drillers and benefit from increases in exploration and drilling activity are Gulfmark Offshore (GLF), Hornbeck (HOS), Seacor (CKH) and Tidewater (TDW).

Top 10 Dividend Companies To Invest In 2015: Nordson Corporation(NDSN)

Nordson Corporation manufactures equipment used for precision dispensing, testing and inspection, and surface preparation and curing. Its Adhesive Dispensing Systems segment manufactures equipment for applying adhesives, lotions, and liquids to disposable products; automated adhesive dispensing systems for the food and beverage, and packaged goods industries; hot melt and cold glue adhesive dispensing systems for the paper and paperboard converting industries; adhesive and sealant dispensing systems for bonding or sealing plastic, metal, and wood products; and laminating and coating systems to manufacture continuous-roll goods in the nonwovens, textile, paper, and flexible-packaging industries. The company?s Advanced Technology Systems segment comprises automated gas plasma treatment systems used to clean and condition surfaces for the semiconductor, medical, and printed circuit board industries; controlled manual and automated systems for applying materials in customer pr ocesses requiring precision and material conservation; ultraviolet equipment used in curing and drying operations for specialty coatings, semiconductor materials, and paints; and bond testing and automated optical and x-ray inspection systems used in the semiconductor and printed circuit board industries. Its Industrial Coating Systems segment provides automated and manual dispensing systems used for applying coatings, paint, finishes, sealants, and other materials. Nordson Corporation markets its products in the United States and internationally through a direct sales force, as well as through qualified distributors and sales representatives. It serves various markets, including the appliance, automotive, bookbinding, container, converting, electronics, food and beverage, furniture, life sciences and medical, metal finishing, non woven, packaging, and semiconductor industries. The company was founded in 1935 and is headquartered in Westlake, Ohio.

Advisors' Opinion:

• [By Lauren Pollock]

  Nordson Corp.'s(NDSN) fiscal fourth-quarter earnings fell 12% on weaker demand, though the maker of dispensing equipment noted improvement in recent order trends.

• [By Travis Hoium]

  What: Shares of industrial product manufacturer Nordson (NASDAQ: NDSN  ) dropped as much as 10% today after the company reported fiscal second-quarter earnings.

Top 10 Dividend Companies To Invest In 2015: Wisconsin Energy Corporation (WEC)

Wisconsin Energy Corporation engages in the generation, distribution, and sale of electric energy and steam. The company also involves in the purchase, distribution, and sale of natural gas to retail customers, as well as in the transportation of customer-owned natural gas in Wisconsin. It generates electricity from coal, natural gas, wind, and hydro sources. The company offers its services under ?We Energies? name. It serves approximately 1,120,200 electric customers in Wisconsin and the Upper Peninsula of Michigan; approximately 1,064,500 gas customers in Wisconsin; and approximately 460 steam customers in metropolitan Milwaukee, Wisconsin. In addition, the company invests and develops in real estate properties, including business parks and other commercial real estate projects primarily in southeastern Wisconsin. It provides electric utility service to industries, such as mining, paper, foundry, food products, and machinery production, as well as to retail chains. The c ompany was founded in 1981 and is based in Milwaukee, Wisconsin.

Advisors' Opinion:

• [By Dividends4Life]

  This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
  
  Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.
  
  Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.
  
  Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.
  
  BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.
  
  ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.
  
  Omega Healthcare Investors Inc. (OHI) is a real es

• [By Chris Hill]

  Our analysts share why they're keeping a close eye on Apple (NASDAQ: AAPL  ) , Wisconsin Energy (NYSE: WEC  ) �and Coach (NYSE: COH  ) .

• [By Larry Smith]

  Wisconsin Energy (WEC) - Wisconsin Energy is the largest electric and gas company in Wisconsin with 1.1 million electric customers and 1 million gas customers. Wisconsin Energy also owns a 26% interest in American Transmission Company, a multistate, transmission only utility. WEC has been named the most reliable utility in the Midwest seven out of the last 10 years and has very high customer satisfaction. I owned WEC briefly and would be willing to own it again at a price under $38.00.

Top 10 Dividend Companies To Invest In 2015: Star Gas Partners L.P.(SGU)

Star Gas Partners, L.P., through its subsidiaries, operates as a home heating oil distributor and services provider in the United States. It provides its services to residential and commercial customers to heat their homes and buildings. As of March 31, 2011, the company served approximately 408,000 full-service residential and commercial home heating oil, and propane customers. It also sold home heating oil, gasoline, and diesel fuel to approximately 40,000 customers. In addition, Star Gas Partners installed, maintained, and repaired heating and air conditioning equipment, as well as provided ancillary home services, including home security and plumbing to approximately 11,000 customers. Kestrel Heat, LLC operates as the general partner of the company. Star Gas Partners, L.P. was founded in 1995 and is headquartered in Stamford, Connecticut.

Advisors' Opinion:

• [By Rich Smith]

  Stamford, Conn.-based Star Gas Partners (NYSE: SGU  ) is about to get a new CEO.

  The company (which, despite the name, actually spends more time delivering oil than gas for home heating), announced Tuesday that Chief Executive Officer Dan Donovan intends to retire on Sept. 30. When that happens, Chief Operating Officer Steve Goldman will move up to take the CEO's chair.

Top 10 Dividend Companies To Invest In 2015: Agrium Inc.(AGU)

Agrium Inc., together with its subsidiaries, produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South Americas. The company?s Retail segment markets crop nutrient products, including nitrogen, phosphate, potash, sulphur, and micronutrients; crop protection products, such as herbicides, fungicides, adjuvants, and insecticides; and seeds. This segment also offers agronomic services, as well as product application, soil and leaf tissue testing and analysis, and crop scouting services. This segment operates 1,192 outlets in the United States, Canada, Australia, Argentina, Chile, and Uruguay. The company?s Wholesale segment produces, markets, and distributes nitrogen, phosphate, potash, sulphate, and other crop nutrient products for agricultural and industrial customers. This segment also owns and operates facilities that upgrade ammonia t o other nitrogen products, such as urea, nitric acid, and ammonium nitrate, as well as provides Rainbow plant food products. Agrium?s Advanced Technologies segment produces and markets controlled-release crop nutrients and micronutrients for the agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.

Advisors' Opinion:

• [By Neha Chamaria]

  Tough times could be in store
  It will also be important to see whether Mosaic follows PotashCorp's footsteps on another count ��idling plants for maintenance during the summer months for an extended period of time. PotashCorp plans to shut one of its mines for an additional six weeks this year, which probably looks like a move to tackle the inventory glut. Lower demand from key global markets like India and China last year resulted in a huge imbalance between demand and supply for potash fertilizer, forcing the key potash players ��PotashCorp, Mosaic, and Agrium (NYSE: AGU  ) ��to idle several plants.

• [By Rich Duprey]

  Yet, Europe's leading potash player K+S (NASDAQOTH: KPLUY  ) just said that, because of the upheaval that's occurred in the market, it was slashing its dividend by 82% for 2013,�reducing the payout ratio to just 11% of adjusted after tax�earnings, a far cry from the miner's usual�ratio of between 40% and 50%. Could this signal a new era of austerity that will ultimately see Potash,�Agrium (NYSE: AGU  ) , and Mosaic (NYSE: MOS  ) �end up whacking their payouts, as well?

• [By Dan Burrows]

  Whether it’s phosphates, sulfur or nitrogen, agriculture stocks have stunk up the market this year. Agrium (AGU), which sells all three through both wholesale and retail, has seen its stock fall 15% for the year-to-date, lagging the S&P 500 by 33 percentage points.

• [By Russ Krull]

  Agrium (NYSE: AGU  ) funded some seeds for future growth with 10- and 30-year paper totaling $1 billion. According to the company's press release, the money will be used to fund planned capital expenditures. No specifics for the capex were provided.

Top 10 Dividend Companies To Invest In 2015: Northeast Utilities(NU)

Northeast Utilities, a public utility holding company, provides electric and natural gas energy delivery services to residential, commercial, and industrial customers in Connecticut, New Hampshire, and western Massachusetts. The company engages in the purchase, delivery, and sale of electricity; and owns and operates approximately 1,200 megawatts of primarily fossil-fueled electricity generation assets. As of December 31, 2010, it served approximately 1.2 million customers in 149 cities and towns in Connecticut; 497,000 retail customers in 211 cities and towns in New Hampshire; and 206,000 retail customers in 59 cities and towns in western Massachusetts. The company also operates a natural gas distribution system in Connecticut and serves approximately 206,000 customers in 71 cities and towns. It offers gas supply to commercial and industrial customers; and to residential customers for heating, hot water, and cooking needs, as well as provides gas transportation services t o commercial and industrial customers. In addition, the company offers electric transmission services. Northeast Utilities was founded in 1927 and is headquartered in Hartford, Connecticut.

Advisors' Opinion:

• [By David Dittman]

  Utilities in regions with better-than-average growth will also do well on this front. Northeast Utilities (NYSE: NU), a recent addition to the UF Portfolio, has significant FERC regulated transmission investments in line that will support dividend growth for years.

• [By David Dittman]

  Northeast Utilities (NU) is New England's largest utility system, serving more than 1.7 million electricity customers in Connecticut, Massachusetts, and New Hampshire.

• [By David Dittman]

  Answer: Growth: Magna International, Ag Growth International Inc (TSX: AFN, OTC: AGGZF), NextEra Energy Inc (NYSE: NEE), Aqua America Inc (NYSE: WTR) and, at these levels, Chevron Corp (NYSE: CVX). I like Verizon too.
  
  Income: Brookfield Renewable Energy, Northeast Utilities (NYSE: NU), Enterprise Products Partners LP (NYSE: EPD), Plains All American Pipeline Partners LP (NYSE: PAA), Pembina Pipeline.

Top 10 Dividend Companies To Invest In 2015: The Cushing MLP Total Return Fund(SRV)

Cushing MLP Total Return Fund is a closed-end mutual fund launched by Swank Capital, LLC. The fund is managed by Swank Energy Income Advisors L.P. It invests in the public equity and fixed income markets across the globe with a focus in United States. The fund typically invests in MLPs, Other Natural Resource Companies, and global commodities. It primarily invests in the securities of MLPs, other equity securities, debt securities, and securities of non-U.S. issuers employing a fundamental analysis. Cushing MLP Total Return Fund was formed on May 23, 2007 and is domiciled in Dallas.

Advisors' Opinion:

• [By Robert Rapier]

  As I write this, Tortoise Pipeline and Energy (NYSE: TTP) trades at a discount of 15.1 percent to its underlying assets, while at the other end of the spectrum Cushing MLP Total Return Fund (NYSE: SRV) trades at a 17.4 percent premium. The average MLP closed-end fund listed trades at a 4.9 percent discount, which is perhaps reasonable given the loss of certain tax advantages and the fact that management fees will eat into returns.

• [By Robert Rapier]

  As I write this, Tortoise Pipeline and Energy (NYSE: TTP) trades at a discount of 15.1 percent to its underlying assets, while at the other end of the spectrum Cushing MLP Total Return Fund (NYSE: SRV) trades at a 17.4 percent premium. The average MLP closed-end fund listed trades at a 4.9 percent discount, which is perhaps reasonable given the loss of certain tax advantages and the fact that management fees will eat into returns.

AT&T earnings dip but beat estimates

AT&T said Tuesday its first quarter net income dipped 1.2 % to $3.65 billion as expenses rose but robust demand for its more expensive wireless data plans drove quarterly revenue higher.

Revenue totaled $32.5 billion for the three-months period ending March 31, up 3.6% from a year ago.

Earnings per diluted share of 70 cents beat analysts' estimate by a penny.

"We have been working very deliberately to transform our business, and this quarter you really start to see the benefits," said Randall Stephenson, AT&T chairman and CEO, in a statement. Customers "are choosing to move off device subsidies to simpler pricing while at the same time, they are continuing to move to smartphones with larger data plans."

Shares of AT&T fell 1.49% in after-hours trading to $35.75.

Revenue for the wireless unit, which runs the nation's second largest wireless carrier, grew 7% year-over-year to $17.9 billion as it added more than 1 million subscribers.

About 625,000 new customers signed up for postpaid plans -- contract-based wireless voice-data plans that are considered the most profitable in the industry -- during the quarter. "This was the strongest first-quarter postpaid growth in five years," the company said.

Nearly 80% of AT&T's postpaid phone subscribers had smartphones, which generate higher revenue per customer. A year ago, 72% had smartphones.

Like its competitors, AT&T has been moving more customers to family data-sharing plans. They make up about 45% of postpaid subscribers, with an average of about three devices per account.

AT&T also noted that 46% of data share accounts had 10 gigabyte or higher plans, up from 28% in the year-ago quarter.

The gains in the postpaid segment were offset by a net loss of 50,000 prepaid subscribers, partly due to customers on its older 2G technology ending their accounts.

AT&T closed its acquisition of Leap Wireless on March 13, and expects about $1.2 billion of integration costs to conti! nue over the next two years.

Its wireline revenues were flat at $14.6 billion. But its U-verse revenues, including pay-TV, phone and broadband Internet, were 29% higher than the year-earlier quarter.

Revenues from residential customers rose 4.3% to $5.7 billion, the strongest rate of growth since the introduction of U-verse eight years ago.

U-Verse had 11.3 million customers in the first quarter, including 201,000 new TV customers who signed up during the quarter. Its Internet service gained 634,000 subscribers.

About two-thirds of U-verse TV subscribers take "three or four services" from AT&T, the company said. The average revenue per U-verse triple-play customer continues to be more than $170.

AT&T (T) Earnings: What to Expect

NEW YORK (TheStreet) -- AT&T (T) is due to report earnings after the bell Tuesday. Analysts surveyed by Thomson Reuters anticipate net income of 70 cents a share and $32.4 billion in revenue over the three months to March. 

In the year-ago quarter, the telecommunications company recorded 64 cents a share in net income and revenue of $31.4 billion. 

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate AT&T INC (T) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: T's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, AT&T INC's return on equity exceeds that of both the industry average and the S&P 500. The gross profit margin for AT&T INC is rather high; currently it is at 63.10%. It has increased significantly from the same period last year. Along with this, the net profit margin of 20.84% is above that of the industry average. The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Diversified Telecommunication Services industry average. The net income increased by 279.2% when compared to the same quarter one year prior, rising from -$3,857.00 million to $6,913.00 million. The debt-to-equity ratio is somewhat low, currently at 0.82, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.47 is very weak and demonstrates a lack of ability to pay short-term obligations. You can view the full analysis from the report here: T Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: T 

Tasty trio: Panera, Chipotle & Whole Foods

In our search for 'tasty investments', we looked for food companies with the potential to maintain rapid growth and chalk up stock gains by virtue of offering consumers a compelling mix of decent nutrition and sufficient calories at a reasonable price.

Among restaurant chains, two standouts are Panera Bread (PNRA) and Chipotle Mexican Grill (CMG). And when you think of healthful food markets, Whole Foods Market (WFM) springs naturally to mind.

Panera Bread gets the highest nutritional grade from Health magazine. Its more than 1600 stores in 44 states and Ontario offer fresh store-baked breads and a wide selection of salads and sandwiches. About half its bakeries and cafes are franchises, while half are company-owned.

The balance sheet is debt-free, with free cash flow plentiful. Earnings growth over the past five years has averaged 20 percent a year, and with the company still relatively small, this pace should be maintainable for the foreseeable future. With a PEG ratio slightly above 1, the stock seems primed to outperform the market.

Chipotle's more than 1,000 company-owned food outlets offer healthful Mexican fare including burritos, tacos, and salads designed to appeal both to the growing Hispanic population in the U.S. and to other demographics.

5 Best Logistics Stocks To Own Right Now

Profit growth has averaged 30 percent a year over the past five years, propelled by rising same-store sales and new stores. Cash flow is solid, allowing for share buybacks in conjunction with a virtually debt-free balance sheet.

The chain's enlarged base could slow growth somewhat to a still rapid 20 to 23 percent pace, keeping the PEG reasonable.

Whole Foods is built around organic and natural foods. Despite the higher prices such foods command, sales are growing more than twice as fast as overall food sales.

Its dominance in this market gives Whole Foods both scale and pricing power, letting the company buy goods more cheaply than competitors can and earn higher margins, while promoting greater values so as to attract more shoppers.

Whole Foods' same-store sales growth and operating margins far exceed those of other supermarket chains. Profits shrank during the 2008-09 recession, leading the company to emphasize value. But growth subsequently resumed.

Profits in fiscal 2014 should exceed 2.5 times 2007's earnings, for average annual growth of over 17 percent. If the economy expands even modestly in the next several years, Whole Foods' earnings should grow by at least 20 percent annually.

The stock isn't cheap, but with investors likely to support a premium multiple for some time to come, the shares should rise in line with earnings.

Learn  more about this financial newsletter at Stephen Leeb's The Complete Investor.

Ex-BP worker charged with insider trading

A former BP crisis manager was hit with insider-trading charges Thursday for using confidential information about the magnitude of the 2010 Deepwater Horizon oil spill disaster to unload his family's $1 million portfolio of company stock.

The improper trades enabled Keith Seilhan, who coordinated BP's oil collection and cleanup operations after the Gulf of Mexico catastrophe, to "avoid losses and reap unjust profits as the price of BP securities dropped by approximately 48%" after the improper sales, the Securities and Exchange Commission charged.

The explosion and fire disaster left 11 dead amid an uncontrolled spill that lasted 84 days and spewed an estimated 200 million gallons of oil into the Gulf and on surrounding coastlines.

"Corporate insiders must not misuse the material non-public information they receive while responding to unique or disastrous corporate events, even where they stand to suffer losses as a consequence of those events," said Daniel Hawke, chief of the SEC enforcement division's market abuse unit.

Seilhan, a former 20-year employee of BP, agreed to settle the case by returning $105,409 of alleged improper gains and paying a civil penalty for the same amount. The crisis manager, who will also pay $13,300 in prejudgment interest, neither admitted nor denied the allegations.

The settlement is subject to approval of a federal judge in Louisiana's eastern district.

"Four years have passed, and Mr. Seilhan wants to avoid further distraction and protracted litigation," said defense attorney Mary McNamara on Thursday. She added that Seilhan "is widely respected for his work helping to lead the cleanup and containment efforts in the Gulf of Mexico in 2010."

The case is the latest of dozens of similar civil or criminal proceedings brought by the SEC and federal prosecutors in a multiyear crackdown on suspected insider trading.

The Deepwater Horizon was an offshore drilling platform operated by a BP subsidiary in the Macondo Prospect area of ! the Gulf.. The rig exploded on April 20, 2010, killing 11 of the 126 workers on the platform before sinking about 5,000 feet to the sea floor two days later.

The disaster uncoupled the oil riser pipe that connected the wellhead below the Gulf to the rig. That unleashed a massive oil spill that caused billions of dollars in damages, losses and environmental harm in the Gulf, as well as coastal areas of Alabama, Florida, Louisiana, Mississippi and Texas.

Immediately after the explosion, BP deployed Seilhan, now a 47-year-old resident of Tomball, Texas, to serve as an on-scene coordinator of containment and cleanup efforts.

BP reported publicly and told the SEC in late April 2010 that estimated oil-flow rates from the disaster totaled approximately 5,000 barrels of oil per day.

But Seilhan learned from his role as response coordinator that the damage was far worse, the SEC charged. Among other sources of information, he received an April 22 e-mail from another BP manager with non-public estimates that the flow rate ranged from 64,000 barrels per day to 110,000 barrels per day, the agency's court complaint alleged.

Seilhan also "had additional non-public information that the flow rate of oil was well in excess of the then-public estimates," the complaint charged.

Acting on the confidential data, Seilhan on April 29 allegedly sold 87,512 units of the BP Stock fund in his and relatives' retirement accounts, generating proceeds of $984,697. He sold three different BP employee stock-option grants in a brokerage account the following day, netting $47,561 from those transactions, the court complaint charged.

Five days after the brokerage transactions, a BP attorney sent Seilhan and other disaster workers an e-mail that cautioned the firm's code of conduct "prohibits you from trading on the basis of any price sensitive information relating to either BP securities or those of any other publicly traded company."

The message advised recipients to contact the attorney i! f they had! any questions or uncertainties about prohibited transactions.

"Thanks for this. I would like to discuss with you soon," Seilhan allegedly e-mailed back.

He did not respond to subsequent email and voice-mail messages left by the attorney, and never disclosed his transactions to BP, the court complaint charged.

FINRA to Mull Beefing Up Broker Background Checks

After recent reports claimed that the Financial Industry Regulatory Authority’s BrokerCheck is full of holes and deletes crucial information about brokers’ backgrounds, FINRA’s board plans to consider on April 24 an amendment to its supervision rule, including background investigations of new brokers as well as requiring firms to beef up their verification of reps’ U4s.

FINRA announced Wednesday its rulemaking items for discussion at the April 24 board meeting, which includes a proposed amendment to FINRA Rule 3110, the supervision rule, regarding background investigations of applicants for registration, including requiring firms to adopt written procedures to verify Form U4.

Brokers use Form U4 to begin and end their registered relationship with FINRA; it asks questions about employment and criminal history. The self-regulator says that the forms are essential to its ability to perform its regulatory oversight responsibilities.

Top Industrial Disributor Companies To Own In Right Now

In March, The Wall Street Journal wrote that its own survey had revealed that more than 1,600 brokers had bankruptcy filings or criminal charges that weren’t publicly reported, which violated FINRA regulations.

The Journal says that it uncovered the reporting failures by comparing the records of more than 500,000 stockbrokers, obtained from states, with criminal and bankruptcy-court filings.

The Journal reported Tuesday that FINRA also intends “to vet the information publicly reported for each of the approximately 630,000 stockbrokers it oversees against public court records.”

The Public Investors Arbitration Bar Association (PIABA) released its own report in early March stating that BrokerCheck deletes crucial information about brokers’ backgrounds — including criminal records — despite the fact that such information is available from many state securities agencies operating under robust public records laws.

PIABA, a group of attorneys who represent investors in claims against brokers, stated in its report that the extent of omitted “red flag” background information in BrokerCheck is “so serious that unwitting investors relying on the online database may very well select brokers with whom they would not do business if they had access to the more complete picture available to FINRA but now being hidden.”

FINRA responded to the PIABA study by saying in a statement, “While the [BrokerCheck] system may not be perfect, we do have to make determinations on what information about registered representatives is appropriate to release, while at the same time balancing fairness rather than ignoring it.”

---

Check out FINRA's BrokerCheck 'Hides' Criminal Records on ThinkAdvisor.

Schwab Boosts Profits 58%: Q1 Earnings

Charles Schwab (SCHW) said early Tuesday that its net income soared 58% from last year to $326 million. Its net revenues improved 15% to nearly $1.5 billion.

“Our contemporary full-service investing model continued to resonate with investors during the first quarter,” said CEO Walt Bettinger, in a press release. “We gathered $34.2 billion of net new assets during the quarter, a 6% annualized organic growth rate, and 258,000 new brokerage accounts, up 6% year over year.”

According to Schwab, it now has some $2.3 trillion in client assets. Trading activity improved in early 2014, with the firm making an average of more than 550,000 total trades a day during the first quarter.

“More significantly, however, our work to build awareness of our professional advice capabilities continued during the quarter, and we ended March with approximately half of all client assets receiving some form of ongoing advisory service,” Bettinger explained.

Some $974 billion of client assets are shepherded by independent advisors, and $159 billion are part of the firm’s retail advisory program, up 16% and 17%, respectively, over the first quarter of 2013.

Schwab now serves 9.2 million active brokerage accounts and 933,000 banking accounts, up 4% and 5%, respectively, from year-ago levels.

“Schwab’s unique business model is able to produce solid operating results while enabling clients to invest as they choose,” the CEO noted.

Schwab Advisor Services

Net new client assets for the unit were $17.3 billion in the first quarter, up 9% from 15.9 billion last year and an increase of 18% from $14.6 billion in the fourth quarter of 2013.

The unit has some $1.04 trillion in client assets as of March 31 vs. $895 billion a year ago and $1.01 trillion in the prior quarter.

Average client assets that are managed and administered by the Advisory Services group stand at $158.4 billion, compared to $135.5 billion a year ago. Revenues tied to these managed and administered assets were $199 million in Q1’14 vs. $163 million in Q1’13, and the average fees were 0.51% and 0.49%, respectively.

Analyst’s View

Schwab’s net interest margin of 1.64%, was up 8 basis points sequentially and 7 bps above the expectations of Sterne Agee analyst Jason Weyeneth, CFA, “ despite continued pressure on both ends of the yield curve during the quarter.”

The main force behind this increase, Weyeneth says, is the firm’s held to maturity (HTM) securities bucket.

The firm also generated operating margins of 35.3%, “up 60 bps sequentially and 260 bps above our expectations, he notes. “The upside was driven by well-controlled compensation costs, where the 35.7% compensation to revenue ratio declined 20 bps sequentially despite seasonally higher costs and merit increases.”

“The year is off to a strong start with the margin above the levels communicated in management's full-year guidance (~34%),” the analyst said. Plus, demand for advice solutions “continues to grow across all of Schwab's offerings with assets managed by independent advisors or in SCHW's retail advisory solutions up 16-17% from a year ago,” he explained.

Indie Channels to Hold 38% of Assets by 2016: Cerulli

While the wirehouses experienced outflows of $74 billion due to advisor movement in 2012 — mainly in favor of the dually registered channel, which is anticipated to add 3.3% market share by 2016 — the wirehouses are still expected to retain their lead in assets, according to Cerulli Associates.

But that advisor migration is expected to grow independent channels to 38% of asset market share through 2016, according to Cerulli’s report, Intermediary Distribution 2013: Managing Sales Amid Industry Consolidation.

“We anticipate the registered investment advisor and the dually registered channels are going to be the beneficiaries of advisor movement,” said Kenton Shirk, associate director at Cerulli.

Indeed, Cerulli has predicted that independent and dually registered RIAs will account for 26% of all retail advisory assets by the end of 2016.

“Across the advisor industry, there is a strong desire for independent operation and ownership,” Shirk says. “The draw of autonomy, combined with the trend toward fee-only relationships, has enhanced the appeal of the independent channels.”

The report notes that “while many advisors desire a pure fee-only business, more often reality dictates a mix of fee and commission relationships. A legacy of commission business creates a familiarity with certain products, provides revenue in the form of trails, and breeds dependency on BD support.”

The report also notes advisors’ use of exchange-traded funds has boosted their asset growth. ETFs’ year-over-year asset growth outpacing their 5-year average, increasing an impressive 57.5% due to market appreciation and expanding advisor adoption.

While advisors’ use of alternatives has also grown in recent years, Cerulli notes that “many advisors are still reluctant to implement them in their portfolios.”

Best Oil Stocks To Own Right Now

Alternatives, Cerulli says, “are often associated with high risk, and many advisors fear that they will lose clients if alternative investments in their portfolios perform poorly.” The Boston-based firm goes on to say that “many advisors lack thorough understanding of how alternatives fit within a portfolio and how they will perform in different market environments.” However, “when used appropriately, alternatives can provide protection to downside risk, although they typically do not yield high returns in bull markets.”

The report also notes that while variable annuity sales have persisted at IBDs and banks “where a culture of transactional business is the norm,” many broker-dealers are looking to grow their fee-based business, “which has hampered but not eliminated the use of annuities.”

Top Gas Companies To Watch For 2015

Despite the markets' push to record levels, energy stocks have been locked into a bearish slump for the past two years. 

With natural gas plummeting to an all-time low in the summer of 2012 and crude contained by slow economic growth, energy stocks have been big underperformers. That shows up in the sector's 3% gain in the past five years, 12% gain in the past three and just 7% gain in 2013 against the S&P 500's 20%.

 

But with natural gas trading well above its multi-year low and crude recently breaking above $100, the stage could be set for a rebound.

One of my favorite ways to cash in on the energy trade is with offshore drillers. I'm bullish on the offshore drilling industry because that's where most of the new oil is being found. In the past decade, more than 40% of all newly discovered oil was found in ultra-deep water, bypassing both onshore and near-shore discoveries. Big finds in the Gulf of Mexico and off the coasts of Brazil and Africa will also continue to drive demand for offshore drilling services.

Top Gas Companies To Watch For 2015: Transdigm Group Incorporated(TDG)

TransDigm Group Incorporated designs, produces, and supplies engineered aircraft components for use on commercial and military aircraft principally in the United States. The company?s products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, pumps and valves, power conditioning devices, AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, cockpit displays, aircraft audio systems, lavatory components, engineered interior surfaces, and lighting and control technology. Its customers comprise distributors of aerospace components; commercial airlines, including national and regional airlines; commercial transport and regional and business aircraft original equipment manufacturers (OEMs); various armed forces of the United States and foreign governments; defense OEMs; system suppliers; and various other industrial customers. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

Advisors' Opinion:

• [By Seth Jayson]

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

Top Gas Companies To Watch For 2015: Pacific Coast Oil Trust (ROYT)

Pacific Coast Oil Trust is a statutory trust formed by Pacific Coast Energy Company LP (PCEC) to own interests in the Underlying Properties. As of December 31, 2011, the Underlying Properties consisted of the proved developed reserves on the Underlying Properties, which it refers to as the Developed Properties, and all other development potential on the Underlying Properties, which it refers to as the Remaining Properties. The Underlying Properties are located in California in the Santa Maria and Los Angeles Basins. PCEC produces oil and natural gas from its Orcutt properties in the Santa Maria Basin. The production in the Orcutt oilfield is produced from formations utilizing conventional production methods.

PCEC is engaged in the production and development of oil and natural gas from properties located in California. As of December 31, 2011, PCEC held interests in approximately 276 gross (215 net) producing wells, and had proved reserves of approximately 34.1 million barrels of oil equivalent. The Underlying Properties consist of producing and non-producing interests in oil units, wells and lands located onshore in California in the Santa Maria Basin, which contains PCEC�� Orcutt properties, and the Los Angeles Basin, which contains PCEC�� West Pico, East Coyote and Sawtelle properties. As of December 31, 2011, there were 37 producing wells and six waterflood injection wells in the West Pico Unit. West Pico also includes three wells held by the Stocker JV, a joint venture between PCEC and PXP.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

• [By Rich Duprey]

  Perpetual royalty trust�Pacific Coast Oil Trust (NYSE: ROYT  ) announced yesterday its July distribution of $0.15721�per unit. The amount of the trust's monthly distributions will fluctuate depending on the proceeds it receives from its owner, Pacific Coast Energy, as a result of actual production volumes, oil and gas prices, and development expenses.� The current distribution relates to net profits and overriding royalties generated during May 2013.

Top Electric Utility Companies To Own In Right Now: Frontline Ltd (FRO)

Frontline Ltd., incorporated on June 12, 1992, is a shipping company. The Company is engaged primarily in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. The Company operates tankers of two sizes: very large crude carriers (VLCCs), which are between 200,000 and 320,000 deadweight tons, and Suezmax tankers, which are vessels between 120,000 and 170,000 deadweight tons. As of December 31, 2010, its tanker and OBO fleet consisted of 73 vessels. The fleet consists of 44 VLCCs, which are either owned or chartered in, 21 Suezmax tankers, which are either owned or chartered in and eight Suezmax OBOs, which are chartered in. The Company also had five VLCC newbuildings and two Suezmax newbuildings on order and three VLCCs under its commercial management. In February 2010, it purchased the VLCC Front Vista from Ship Finance International Limited (Ship Finance). In January 2011, it sold the VLCC Front Shanghai.

The Company operates through subsidiaries and partnerships located in the Bahamas, Bermuda, the Cayman Islands, India, the Isle of Man, Liberia, Norway, the United Kingdom and Singapore. The Company is also engaged in the charter, purchase and sale of vessels. In April 2010, the Company delivered the single hull Suezmax Front Voyager. During the year ended December 31, 2010, six newbuildings were completed. Four Suezmax vessels were delivered: the Northia, on January 5, 2010; the Naticina, on March 9, 2010; the Front Odin, on May 5, 2010, and the Front Njord on August 12, 2010. Two VLCCs were delivered: the Front Cecilie on June 10 and the Front Signe on August 9, 2010. As of December 31, 2010, the Company's newbuilding program consisted of two Suezmax tankers and five VLCCs.

Advisors' Opinion:

• [By Tyler Crowe]

  Oil tankers could also see a benefit as well. With potential of the SUMED pipeline being shut down, it would mean that tankers would need to increase traffic by 2 million barrels per day and increase its shipment times as much as LNG tankers.�Norway's�Frontline� (NYSE: FRO  ) , the world's largest oil tanker fleet, has day rates of about $25,000 for its oil carriers, so it's not as much of a win as LNG carriers. Also, higher fuel prices for all shipments will eat into that revenue boost.�

• [By Karee Venema]

  One equity that falls under the small-cap umbrella, and looks poised to benefit from a contrarian boon is shipping concern Frontline Ltd. (FRO).

  Shares of Frontline have more than doubled in value since hitting a decade-plus low of $1.71 last May. In fact, the stock tagged a new annual high of $5.18 in early January.

• [By Paul Ausick]

  Big Earnings Movers: Hewlett-Packard Co. (NYSE: HPQ) is up 9.1% at $27.37 after beating on both the top and bottom lines last night. 58.com (NYSE: WUBA) is down 10% at $33.56. Frontline Ltd. (NYSE: FRO) is up 16.6% at $2.74.

• [By Sean Williams]

  Frontline (NYSE: FRO  )
  Shares of Frontline, a transporter of oil and oil products, as well as coal and iron ore, shot higher earlier this week despite no specific news. Many investors might remember Frontline as a company that paid out a double-digit yield as recently as a few years ago. However, the landscape of the shipping sector has drastically changed, and even at just $2 a share it's no longer the value it once was.

Top Gas Companies To Watch For 2015: Susser Petroleum Partners LP (SUSP)

Susser Petroleum Partners LP is primarily engaged in fee-based wholesale distribution of motor fuels to Susser Holdings Corporation (SHC) and third parties. SHC operates over 540 retail convenience stores under its Stripes convenience store brand. In addition to distributing motor fuel, the Company also distributes other petroleum products, such as propane and lube oil, and it receive rental income from real estate that it lease or sublease. In January 2014, Susser Petroleum Partners LP announced the acquisition of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores, Inc. and 3W Warren Fuels, Ltd.

During the year ended December 31, 2011, the Company distributed 789.6 million gallons of motor fuel to Stripes convenience stores and 522.8 million gallons of motor fuel to other customers. It also distributes Chevron, CITGO, Conoco, Exxon, Mobil, Phillips 66, Shamrock, Shell, Texaco and Valero branded motor fuel, as well as unbranded motor fuel. In addition to distributing motor fuel, it also distributes other petroleum products, such as propane and lube oil.

Advisors' Opinion:

• [By Robert Rapier]

  Susser Petroleum Partners (NYSE: SUSP) engages in fee-based wholesale distribution of motor fuels. The partnership also distributes petroleum products like propane and lube oil, and receives rental income from real estate.

• [By Robert Rapier]

  Susser Petroleum Partners (NYSE: SUSP) debuted in September 2012, and has appreciated by 50 percent since. Susser engages in fee-based wholesale distribution of motor fuels. The partnership also distributes petroleum products like propane and lube oil, and receives rental income from real estate.

Top Gas Companies To Watch For 2015: Surge Energy Inc (ZPTAF.PK)

Surge Energy Inc. is an oil focused exploration and production (E&P) company. The Company has projects in Southern Saskatchewan/the Williston Basin, SE Alberta and Valhalla/Nipisi. In January 2014, Surge Energy Inc. announced the SE Saskatchewan light oil acquisition. Advisors' Opinion:

• [By Value Digger]

  In late January 2013, I wrote an article about Surge Energy (ZPTAF.PK), an oil-weighted intermediate producer with operations in Canada and US. It was when the price dropped below $4. Actually, I recommended Surge Energy back then at $3.7, for the reasons mentioned here.

Top Gas Companies To Watch For 2015: Eagle Rock Energy Partners LP (EROC)

Eagle Rock Energy Partners, L.P. (Eagle Rock) is a limited partnership engaged in the business of gathering, compressing, treating, processing and transporting natural gas; fractionating and transporting natural gas liquids (NGLs); crude oil logistics and marketing; natural gas marketing and trading, known as Midstream Business, and developing and producing interests in oil and natural gas properties, known as Upstream Business. On May 3, 2011, the Company acquired CC Energy II, L.L.C and outstanding membership interests of Crow Creek Energy. On May 20, 2011, it sold the Wildhorse Gathering System in its East Texas and Other Midstream Segment.

Midstream Business

The Company�� Midstream Business is located in four natural gas producing regions: the Texas Panhandle; East Texas/Louisiana; South Texas, and the Gulf of Mexico. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production to the Company of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed. As of December 31, 2011, its Midstream Business consisted of Panhandle Segment and East Texas and Other Midstream Segment.

The Company�� Texas Panhandle Segment covers 10 counties in Texas and two counties in Oklahoma. Through the systems within this segment, the Company offers midstream wellhead-to-market services, including gathering, compressing, treating, processing and selling of natural gas, and fractionating and selling of NGLs. As of December 31, 2011, approximately 213 producers and 2,072 wells and central delivery points were connected to the systems in its Texas Panhandle Segment. The Texas Panhandle Segment averaged gathered volumes fo! r 2011 of approximately 155.1 million cubic feet of natural gas per day. As of December 2011, Chesapeake Energy and BP America Production represented 14% and 11%, respectively, of the total volumes of its Texas Panhandle Segment. The Texas Panhandle Segment consists of approximately 3,963 miles of natural gas gathering pipelines, ranging from two inches to 24 inches in diameter; seven natural gas processing plants with an aggregate capacity of 210 million cubic feet of natural gas per day; a propane fractionation facility with capacity of 1.0 million cubic feet of natural gas per day, and two condensate collection and stabilization facilities.

Eagle Rock�� systems in the East Panhandle (northern Wheeler, Hemphill and Roberts Counties, Texas) gather and process natural gas produced in the Morrow and Granite Wash reservoirs of the Anadarko basin. In the Panhandle Segment, natural gas is contracted at the wellhead primarily under percent-of proceeds (which includes percent-of-liquids) fixed recovery, percent-of-index and fee-based arrangements that range from one to five years in term. During the year endede December 31, 2011, it produced over 2,600 equity barrels per day of condensate in the Texas Panhandle Segment. During 2011, it stabilizes approximately 2,000 barrels per day combined at its Superdrip and Cargray Stabilizers.

The Company�� East Texas and Other Midstream Segment operates within the natural gas producing regions, such as East Texas/Louisiana, South Texas and the Gulf of Mexico. Through its Texas/Louisiana region, it offers producers natural gas gathering, treating, processing and transportation and NGL transportation across 21 counties in East Texas and seven parishes in West Louisiana. Its operations in the South Texas region primarily gather natural gas and recover NGLs and condensate from natural gas produced in the Frio, Vicksburg, Miocene, Canyon Sands and Wilcox formations in South Texas. Its operations in the Gulf of Mexico region are non-operated owne! rship int! erests in pipelines and onshore plants which are all located in southern Louisiana. The Gulf of Mexico region also provides producer services by arranging for the processing of producers��natural gas into third-party processing plants, known as Mezzanine Processing Services.

As of December 31, 2011, approximately 705 wells and central delivery points were connected to its systems in the East Texas and Other Midstream Segment. As of December 31, 2011, the East Texas and Other Midstream Segment provides gathering and/or marketing services to approximately 140 producers. During 2011, the East Texas and Other Midstream Segment averaged gathered volumes of approximately 319.9 million cubic feet of natural gas per day. As of December 31, 2011, Stone Energy Corporation and Anadarko Petroleum Company represented 18% and 9%, respectively, of the total volumes of its East Texas and Other Midstream Segment. Residue gas pipelines include Houston Pipeline Company, Natural Gas Pipeline Company, Tennessee Gas Pipeline, Crosstex Energy L.P. and Southern Natural Pipeline.

Upstream Business

The Company�� Upstream Business located in four regions within the United States, such as Southern Alabama, which includes the associated gathering, processing and treating assets; Mid-Continent, which includes areas in Oklahoma, Arkansas, Texas Panhandle and North Texas; Permian, which includes areas in West Texas, and East/South Texas/Mississippi assets. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed.

The Southern Alabama region includes the! Big Esca! mbia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Big Escambia Creek field encompasses approximately 11,568 gross and 7,334 net Eagle Rock operated acres. It operates 18 productive wells with an average ownership of 60% working interest and 51% net revenue interest in the Big Escambia Creek field. The Fanny Church field is located two miles east of Big Escambia Creek. Its ownership includes approximately 1,284 gross and 999 net operated acres that include three productive operated wells with an average ownership of 86% working interest and 66% net revenue interest. The Flomaton field is adjacent to and partially underlies the Big Escambia Creek field. The field encompasses approximately 1,280 gross and 1,256 net Eagle Rock operated acres and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. It operates three productive wells with an approximate average 91% working interest and 78% net revenue interest. The Smackover and Norphlet reservoirs are sour, gas condensate reservoirs which produce gas and fluids containing a high percentage of hydrogen sulfide and carbon dioxide.

The Mid-Continent region consists of operated and non-operated properties across the Golden Trend Field, Cana Shale play, Verden Field, and other western Oklahoma fields located in the Anadarko Basin in Oklahoma, the Mansfield Field and other various fields in the Arkoma Basin in Arkansas and Oklahoma, various fields in the Texas Panhandle, and the Barnett Shale in north Texas. Productive depths range from approximately 2,500 feet in the Arkoma fields of western Arkansas to greater than 18,000 feet in the Springer formation in certain western Oklahoma fields. Its producing field is the Golden Trend field that extends across Grady, McClain and Garvin counties in Oklahoma. It has 14,621 net acres in the Cana Shale play exte! nding acr! oss Canadian, Blaine and Dewey counties, Oklahoma. The Cana Shale produces from horizontal wells drilled to vertical depths of 11,000 - 13,000 feet and extended with horizontal lateral lengths of approximately 5,000 feet. In the total Mid-Continent region, it operate 316 productive wells and own a working interest in an additional 1,054 non-operated productive wells. The average working interest in these productive operated and non-operated wells is 83% and 9%, respectively. The net production averaged approximately 53.2 million cubic feet of natural gas per day during 2011, of which approximately 77% was produced from wells it operated.

The Permian region contains numerous fields, including Block 27, Estes Block 34, H.S.A., Heiner, Monahans N., Payton, Running W., Ward S, and Ward-Estes N. located mainly in Ward, Pecos, and Crane Counties, Texas. These fields are located in the Central Basin Platform which extends from central Lea County in New Mexico to central Pecos County in Texas and encompasses hundreds of individual fields with multiple productive intervals from the Yates-Seven Rivers-Queen through the Ellenburger formations. The Ward County fields contains two major properties, the Louis Richter and the American National Life Ins. Co. leases, and encompasses approximately 10,285 gross and 10,215 net Eagle Rock acres. It operate multiple fields consisting of stacked multi-pay horizons that produce from depths of 2,300 feet (Yates) to 9,100 feet (Pennsylvanian). The Southern Unit is located in the Running W Waddell field and produces predominantly oil at depths from approximately 5,750 to 5,900 feet. It operates approximately 5,875 net acres in this area.

The East/South Texas/Mississippi region includes the Aker, Birch, Edgewood, Eustace, Fruitvale, Ginger and Wesson fields in East Texas, the Jourdanton field in South Texas, and the Chicora W, High Road, and Stafford Springs fields in Mississippi. The East Texas fields produce primarily from the Smackover Trend at depth! s from 12! ,000 to 12,700 feet and encompass approximately 18,991 gross and 15,872 net Eagle Rock acres. It operates 32 productive wells, which produce gas that contains between approximately 30% to 69% of impurities (hydrogen sulfide, nitrogen, and carbon dioxide). The Edgewood field also contains two productive gas wells in the Cotton Valley at depths of 11,500 to 11,600 feet which produce sweet natural gas. The East Texas production, with the exception of a single well, is delivered to the third party owned Eustace Plant for separation of condensate, removal of impurities, and extraction of natural gas liquids and sulfur for a combination of fees and percentage of proceeds.

In South Texas, it operates wells in the Jourdanton field in Atascosa County, Texas. It operates nine productive wells with 100% working interest and 88% net revenue interest. Its production from the field is primarily from the Edwards carbonates (7,300 to 7,400 feet). On December 31, 2011, the Company had under operation 290 gross (261 net) productive oil wells and 301 gross (251 net) productive natural gas wells. On December 31, 2011, Eagle Rock owned non-operated working interests in an additional 148 gross (18 net) productive oil wells and 1049 gross (72 net) productive natural gas wells.

The Company competes with DCP Midstream, LLC and Enbridge Energy Partners, L.P., Crosstex Energy, L.P., Energy Transfer Partners, LP and Enterprise Products Partners, L.P.

Advisors' Opinion:

• [By Matt DiLallo]

  Investors face quite the dilemma when choosing which way to play the explosive growth of oil and gas production. Some choose to invest in the upside of the commodities by investing directly in an oil and gas producer. Others want the security of midstream cash flows and instead choose to invest in the MLP sector. That means that investors seeking a little bit of exposure to both plays need to invest in two separate companies. Unless, of course, they've invested in�Eagle Rock Energy Partners� (NASDAQ: EROC  ) .

• [By Robert Rapier]

  RGP has been a long-term holding in the MLP Growth Portfolio, returning nearly 25 percent in 2013 while paying a dividend yield above 7 percent. The partnership has been on an acquisition spree lately. Less than three months after unveiling a $5.6 billion buyout of Appalachia-focused gatherer PVR Partners (NYSE: PVR), Regency announced that it would spend $1.3 billion on the midstream assets of Eagle Rock Energy Partners (Nasdaq: EROC), one of the MLP sector�� biggest 2013 busts. RGP will also buy Hoover Energy Partners��midstream assets for $290 million.

• [By Lisa Levin]

  Eagle Rock Energy Partners LP (NASDAQ: EROC) shares touched a new 52-week low of $5.41. Eagle Rock Energy Partners' PEG ratio is -3.29.

  Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

• [By John Kell]

  Natural gas companies Eagle Rock Energy Partners L.P(EROC). and Regency Energy Partners L.P(RGP). said the Federal Trade Commission is requesting additional information regarding Eagle Rock’s sale of its midstream business to Regency. Eagle Rock slipped 2.6% to $4.95 premarket.

Top Gas Companies To Watch For 2015: Chesapeake Utilities Corp (CPK)

Chesapeake Utilities Corporation (Chesapeake), incorporated in 1947, is a utility company engaged in energy and other businesses. The Company operates in three segments: Regulated Energy, Unregulated Energy and Other. The Company operates regulated energy businesses through its natural gas distribution divisions in Delaware, Maryland and Florida, natural gas and electric distribution operations in Florida through Florida Public Utilities Company (FPU), and natural gas transmission operations on the Delmarva Peninsula and Florida through its subsidiaries, Eastern Shore Natural Gas Company (Eastern Shore) and Peninsula Pipeline Company, Inc. (Peninsula Pipeline), respectively. Its unregulated businesses include its natural gas marketing operation through Peninsula Energy Services Company, Inc. (PESCO); propane distribution operations through Sharp Energy, Inc. and its subsidiary Sharpgas, Inc. (collectively Sharp) and FPU�� propane distribution subsidiary, Flo-Gas Corporation; and its propane wholesale marketing operation through Xeron, Inc. (Xeron). It also has an advanced information services subsidiary, BravePoint, Inc. (BravePoint). In February 2013, Florida Public Utilities Company, a a subsidiary of the Company announced that its propane subsidiary, Flo-Gas Corporation, purchased the propane operating assets of Glades Gas Company. In June 2013, the Company acquired Eastern Shore Gas Company (ESG) and Eastern Shore Propane Company (ESP). In June 2013, Chesapeake Utilities Corp announced that it has acquired the operating assets of Austin Cox Home Services, Inc.

Regulated Energy

The Company�� regulated energy segment provides natural gas distribution service in Delaware, Maryland and Florida, electric distribution service in Florida and natural gas transmission service in Delaware, Maryland, Pennsylvania and Florida. As of December 31, 2011, its Delaware and Maryland natural gas distribution divisions serve 53,851 residential and commercial customers and 97 industrial ! customers in central and southern Delaware and on Maryland�� eastern shore. Its Florida natural gas distribution operation consists of Chesapeake�� Florida division and FPU�� natural gas operation. As of December 31, 2011, its Florida electric distribution operation distributed electricity to 30,986 customers in four counties in northeast and northwest Florida. Eastern Shore operates a 402-mile interstate pipeline system, which transports natural gas from various points in Pennsylvania to its Delaware and Maryland natural gas distribution divisions, as well as to other utilities and industrial customers in southern Pennsylvania, Delaware and on the eastern shore of Maryland. Eastern Shore also provides swing transportation service and contract storage services. Peninsula Pipeline provides natural gas transportation service to a customer for a period of 20 years. This service is provided at a fixed monthly charge, through Peninsula Pipeline�� eight-mile pipeline located in Suwanee County, Florida.

The Company�� Delaware and Maryland natural gas distribution divisions have both firm and interruptible transportation service contracts with five interstate open access pipeline companies, including the Eastern Shore pipeline. These divisions are directly interconnected with the Eastern Shore pipeline, and have contracts with interstate pipelines upstream of Eastern Shore, including Transcontinental Gas Pipe Line Company LLC (Transco), Columbia Gas Transmission LLC (Columbia), Columbia Gulf Transmission Company (Gulf) and Texas Eastern Transmission, LP (TETLP). The Transco, Columbia and TETLP pipelines are directly interconnected with the Eastern Shore pipeline. The Gulf pipeline is directly interconnected with the Columbia pipeline and indirectly interconnected with the Eastern Shore pipeline.

Chesapeake�� Florida natural gas distribution division has firm transportation service contracts with Florida Gas Transmission Company (FGT) and Gulfstream Natural Gas System, LLC ! (Gulfstre! am). Eastern Shore has three contracts with Transco for a total of 7,292 dekatherms of firm peak day storage entitlements and total storage capacity of 288,003 dekatherms. Its electric distribution operation through FPU purchases all of its wholesale electricity from two suppliers: Gulf Power Company (Gulf Power) and JEA (formerly known as Jacksonville Electric Authority). The JEA contract provides generation, transmission and distribution service to northeast Florida. The Gulf Power contract provides generation, transmission and distribution service to northwest Florida.

Unregulated Energy

The Company�� unregulated energy segment provides natural gas marketing, propane distribution and propane wholesale marketing services to customers. As of December 31, 2011, its natural gas marketing subsidiary, PESCO, provided natural gas supply and supply management services to 3,080 customers in Florida and 16 customers on the Delmarva Peninsula. The gas, which PESCO sells, is delivered to retail customers through affiliated and non-affiliated local distribution company systems and transmission pipelines. PESCO bills its customers through the billing services of the regulated utilities that deliver the gas, or directly, through its own billing capabilities. As of December 31, 2011, Sharp, its propane distribution subsidiary, served 34,317 customers throughout Delaware, the eastern shore of Maryland and Virginia, and southeastern Pennsylvania. Its Florida propane distribution subsidiary provides propane distribution service to 14,507 customers in parts of Florida. Xeron, its propane wholesale marketing subsidiary, markets propane to petrochemical companies, resellers and retail propane companies in the southeastern United States. Its propane distribution operations purchase propane from suppliers, including oil companies, independent producers of natural gas liquids and from Xeron. In current markets, supplies of propane from these and other sources are readily available for purchase. It! s propane! distribution operations use trucks and railroad cars to transport propane from refineries, natural gas processing plants or pipeline terminals to its bulk storage facilities.

Other

The other segment consists of its advanced information services subsidiary, other unregulated subsidiaries, which own real estate leased to Chesapeake and its subsidiaries. Its advanced information services subsidiary, BravePoint, provides domestic and a range of international clients with information technology services and solutions for both enterprise and e-business applications. Skipjack, Inc. and Eastern Shore Real Estate, Inc. own and lease office buildings in Delaware and Maryland to affiliates of Chesapeake. Chesapeake Investment Company is an affiliated investment company.

Advisors' Opinion:

• [By Rich Duprey]

  Natural gas and propane utility operator Chesapeake Utilities (NYSE: CPK  ) announced yesterday that as of May 31�it had completed the acquisition of Eastern Shore Gas (ESG) along with its affiliate Eastern Shore Propane (ESP), both indirect, wholly owned subsidiaries of Energy Equity Partners�that provide propane gas to residents of Worcester County, Md.

• [By Rich Duprey]

  Chesapeake Utilities� (NYSE: CPK  ) �has declared a regular quarterly dividend of $0.385 per share, a 5.5% increase over its previous payout of $0.365 per share. The dividend will be paid on July 5 to shareholders of record as of the close of business on June 17.�The increase raises the annualized dividend�$0.08�per share, from�$1.46, to�$1.54�per share.

Top Gas Companies To Watch For 2015: LinnCo LLC (LNCO)

Linn Co, LLC (Linn Co) sole purpose is to own LINN Energy, LLC (LINN) units. LINN is independent oil and natural gas company. LINN is focused on the development and acquisition of oil and natural gas properties, which include various producing basins within the United States. LINN�� properties are located in eight operating regions, which include Mid-Continent, which includes properties in Oklahoma, Louisiana and the eastern portion of the Texas Panhandle; Hugoton Basin, which includes properties located primarily in Kansas and the Shallow Texas Panhandle; Green River Basin, which includes properties located in southwest Wyoming; Permian Basin, which includes areas in west Texas and southeast New Mexico; Michigan/Illinois, which includes the Antrim Shale formation in the northern part of Michigan and oil properties in southern Illinois; California, which includes the Brea Olinda Field of the Los Angeles Basin; Williston/Powder River Basin, which includes the Bakken formation in North Dakota and the Powder River Basin in Wyoming, and East Texas, which includes properties located in east Texas. On March 30, 2012, the Company acquired certain oil and natural gas properties (Properties) located primarily in the Hugoton Basin of Southwestern Kansas from BP America Production Company (BP). On May 1, 2012, LINN completed the acquisition of certain oil and natural gas properties located in east Texas. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry's interest.

During the year ended December 31, 2011, LINN drilled a total of 294 gross wells. As of June 1, 2012, LINN had interests in approximately 15,000 gross productive wells (approximately 71% operated) and approximately 1.8 million net acres across seven regions in the United States.

Advisors' Opinion:

• [By Selena Maranjian]

  The biggest new holdings are Joy Global,�and Genworth Financial (NYSE: GNW  ) . Other new holdings of interest include Linn Co (NASDAQ: LNCO  ) , an oil-and-gas company with a dividend yield of 9.1%. It largely exists to own units of the master limited partnership Linn Energy�and convert distributions into dividends. Linn and Linn Co recently acquired Berry Petroleum, and Linn is also building its position in the promising Permian Basin. Bulls like Linn's cash generation and growth prospects. Bears have worried about operational mishaps and an SEC inquiry, but the inquiry has been fruitless. The stock has recently been upgraded by analysts at Robert W. Baird and Howard Weill.

• [By Matt DiLallo]

  As I write this units of LINN Energy (NASDAQ: LINE  ) are heading lower while shares of affiliate LinnCo (NASDAQ: LNCO  ) are following suit. The culprit is an article in Barron's on the company that is highlighting comments from a recent presentation by a hedge fund that's short the company. The article, "Twilight of a Stock-Market Darling", is one of the many recent publications on the company that have highlighted some areas of concern. Let's dig into the thesis of the recent concerns and see if we can glean some insight into what's going on.

• [By Matt DiLallo]

  LINN Energy (NASDAQ: LINE  )
  In my opinion, LINN offers investors the best the characteristics of both Conoco and Enterprise. Like Conoco it's�benefiting�from the tremendous growth in onshore U.S. oil and gas production. Yet like Enterprise it's structured in a more tax-efficient manner, as it's structured in a way similar to an MLP. Taken together, LINN or its affiliate LinnCo (NASDAQ: LNCO  ) make my list as one of the best long-term energy stocks for you to invest in if you're seeking a high yield.

• [By Matt DiLallo]

  LINN Energy (NASDAQ: LINE  ) , along with affiliate LinnCo (NASDAQ: LNCO  ) , are out with first-quarter earnings. The report was below the company's guidance expectations, as production came in at 796 Million cubic feet equivalent per day, or MMcfe/d, against a guidance range of 810 MMcf/d to 845 MMcf/day for the quarter. Let's drill down a little deeper and see what happened.

Top Gas Companies To Watch For 2015: Southern Pacific Resource Corp (STPJF.PK)

Southern Pacific Resource Corp. (Southern Pacific) is engaged in the acquisition and development of heavy oil and bitumen producing properties, with a focus on thermal extraction in-situ oil sands projects in the Western Canadian sedimentary basin. Southern Pacific has two principal assets STP-McKay and STP-Senlac. The Company also holds additional oil sands leases in the McMurray and Peace River sub-basins in northeastern Alberta. The Company has 100% working interest in approximately 37,760 acres, of oil sands leases in McKay Block. Southern Pacific has its 100% working interest SAGD thermal heavy oil asset near Unity, Saskatchewan, STP-Senlac. In September 2013, the Company announced the closing of a disposition of non-core assets related to its Leismer property. Advisors' Opinion:

• [By Stephan Dube]

  Cold Lake's most notable producers:

  Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here.

  Athabasca's most notable producers: