Hot Electric Utility Stocks For 2014

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NEW YORK (CNNMoney) Stocks drifted higher in early trading Monday as U.S. investors got back into action after the long holiday weekend. It will be a week full corporate earnings reports, including well known brands like Netflix (NFLX) and McDonald's (MCD, Fortune 500) and Facebook (FB, Fortune 500).

The Dow Jones industrial average, the S&P 500 and Nasdaq were all flat in early trading. Trading volume was anemic with many professional money managers taking the day off.

U.S. markets were closed Friday for Good Friday. European markets and some Asian markets are still closed Monday for the Easter holiday.

Corporate earnings will be the main focus this week, with 11 Dow companies and 161 of the S&P 500 scheduled to release quarterly reports.

Top Airline Companies To Buy Right Now: VirnetX Holding Corp(VHC)

VirnetX Holding Corporation engages in developing and commercializing software and technology solutions for securing real-time communications over the Internet. Its software and technology solutions, which include secure domain name registry and GABRIEL Connection Technology, facilitate secure communications and create a secure environment for real-time communication applications, such as instant messaging, voice over Internet protocol, smart phones, eReaders, and video conferencing. The company focuses on commercializing its technology to original equipment manufacturers within the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. VirnetX Holding Corporation was founded in 2005 and is headquartered in Scotts Valley, California.

Advisors' Opinion:

• [By Richard Lomas]

  Further declines in profit margins will most likely cause further declines in share price. One key upcoming event could have a significant impact on Apple's profit margin, the setting of a royalty rate for Apple's products that infringe on Virnetx (VHC) patents. Apple was sued by Virnetx for infringing on its data security patents with the trial concluding in November, 2012, with a Virnetx victory. After many motions and negotiations no settlement has been reached between Virnetx and Apple. Judge Davis is expected to rule shortly (probably within the next two weeks) on a royalty rate for the offending products. The royalty rate could be set anywhere between .5% to 1.5% and possibly even more. As this royalty rate will apply to all infringing products, (iPhone, iPad, and others supporting Face Time and iMessage), this will have a direct effect on Apple's profit margin which will also impact stock price.

• [By James E. Brumley]

  While there's no denying that Vringo, Inc. (NASDAQ:VRNG) and VirnetX Holding Corporation (NYSEMKT:VHC) have made a big name for themselves - not to mention made big, even if uneven, gains for shareholder of VHC and VRNG - within the worked of intellectual property enforcement, bigger isn't always better. Smaller companies in the IP arena have a focus and flexibility that larger players like VirnetX and Vringo could never enjoy. Take, for instance, Endeavor IP Inc. (OTCBB:ENIP). This little patent owner may not look like much at first glance, but just ask the four organizations that have already entered licensing deals with ENIP and/or the four, well, now five companies that are currently litigating against Endeavor IP.... this little outfit packs a huge punch.

• [By Rich Duprey]

  Hanging up on mobile growth
  If there's been one stock suffering from a bout of manic investor behavior, it's Internet security specialist VirnetX Holdings (NYSEMKT: VHC  ) , which has found its stock bouncing all over the market. Following a patent infringement win over Apple late last year, shares soared, only to crash miserably after losing a similar case to Cisco (NASDAQ: CSCO  ) , with its shares losing nearly a quarter their value. It was as if all the wheels had fallen off the gravy train it was riding to collecting royalties on its wireless patents.

Hot Electric Utility Stocks For 2014: American States Water Co (AWR)

American States Water Company (AWR), incorporated on February 25, 1998, is the parent company of Golden State Water Company (GSWC) and American States Utility Services, Inc. (ASUS) and its subsidiaries (Fort Bliss Water Services Company (FBWS), Terrapin Utility Services, Inc. (TUS), Old Dominion Utility Services, Inc. (ODUS), Palmetto State Utility Services, Inc. (PSUS) and Old North Utility Services, Inc. (ONUS)). AWR operates in three segments: water, electric and contracted services. Within the segments, AWR has two principal business units, water and electric service utility operations, conducted through GSWC, and contracted services conducted through ASUS and its subsidiaries.

GSWC is a California public utility company engaged principally in the purchase, production and distribution of water in 75 communities in 10 counties in the State of California. GSWC also provides electric service to the City of Big Bear Lake and surrounding areas in San Bernardino County, California through its Bear Valley Electric Service (BVES) division. GSWC served 255,657 water customers and 23,379 electric customers as of December 31, 2012. ASUS, through its wholly owned subsidiaries, has contracted with the United States government to provide water and/or wastewater services at various military installations, including the operation, maintenance, renewal and replacement of the water and/or wastewater systems, pursuant to 50-year firm, fixed-price contracts. As of December 31, 2012, GSWC�� physical properties consisted of water transmission and distribution systems which included 2,786 miles of pipeline together with services, meters and fire hydrants and approximately 425 parcels of land.

As of December 31, 2012, GSWC owned 244 wells, of which 188 are active operable wells equipped with pumps with an aggregate production capacity of approximately 202.7 million gallons per day. GSWC has 63 connections to the water distribution facilities of the Metropolitan Water District of Southern Cali! fornia (MWD), and other municipal water agencies. GSWC�� storage reservoirs and tanks have an aggregate capacity of approximately 111 million gallons. GSWC owns no dams. GSWC�� electric properties are located in the Big Bear area of San Bernardino County, California. As of December 31, 2012, GSWC owned and operated 29.6 miles of overhead 34.5 kilovolt transmission lines, 1.4 mile of underground 34.5 kilovolt transmission lines, 179.6 miles of 4.16 kilovolt or 2.4 kilovolt distribution lines, 53.2 miles of underground cable, 13 sub-stations and a natural gas-fueled 8.4 megawatt peaking generation facility. GSWC also has franchises, easements and other rights of way for the purpose of constructing and using poles, wires and other appurtenances for transmitting electricity.

Advisors' Opinion:

• [By Sean Williams]

  Debt is another big concern in the utility sector. In order to expand and maintain its existing network of pipes and sewers, American Water and its peers have had to take on a significant amount of debt. American Water Works, for example, carries $5.6 billion in net debt on its balance sheet, but has brought in close to $1 billion in operating cash flow over the trailing-12-month period. By comparison, California's American States Water (NYSE: AWR  ) only has $303 million in net debt but generated only $106 million in operating cash flow over the past 12 months. American States may be in better financial shape than American Water Works with regard to debt to equity, but it doesn't have nearly the same bargaining or expansionary power.

• [By MONEYMORNING]

  If you're buying a stock for income, note that, along with how much money you expect it to kick off. That way you can look back years from now and really appreciate something like an American States Water (NYSE: AWR) pick, which has increased its dividend for 59 years.

• [By Insider Monkey]

  American States Water (AWR), meanwhile, is another dividend giant that has seen bullish insider activity of late. The Western US-focused water utilities company has raised dividends in 59 straight years and currently offers a yield of 2.9%. Somewhat astoundingly, American's payout ratio (47%) is still below its industry's average (59%), so the dividend growth doesn't look set to end anytime soon.

• [By Michael Flannelly]

  On Tuesday, analysts at Brean Capital upgraded American States Water Co (AWR), as they now believe the shares have reached an attractive entry point.

  The analysts upgraded AWR from “Hold” to “Buy” and see shares reaching $28. This price target suggests an 11% upside to the stock’s Monday closing price of $25.22.

  Brean Capital analyst Michael Gaugler said, “The shares have fallen to a price level that we now consider attractive, and our sum-of-the-parts valuation indicates fair value is $28 based on our 2014 EPS forecasts. We recommend investors begin accumulating positions under the $25.50 price level to allow sufficient (10%) upside (excluding dividends) to our target price.”

  “We acknowledge that the current environment for utility stocks in terms of interest rate impacts is less than ideal. However, we note the shares of AWR (and our other utility coverage names) have traded at higher P/E multiples when the general level of interest rates was much higher. We see the impact of higher rates as short term and negligible, particularly when we look closely at AWR’s ability to continue to raise its dividend payout versus the peer group by using free cash flow from the ASUS business,” Gaugler added.

  American States Water shares were up 72 cents, or 2.85%, during early morning trading on Tuesday. The stock is up 8% year-to-date.

Hot Electric Utility Stocks For 2014: Dr. Reddy's Laboratories Ltd(RDY)

Dr. Reddy?s Laboratories Limited, together with its subsidiaries, operates as a pharmaceutical company. It produces finished dosage forms, active pharmaceutical ingredients and intermediates, and biotechnology products. The company also conducts research in the areas of cancer, diabetes, cardiovascular, inflammation, and bacterial infection. In addition, it involves in the contract manufacture generic prescription and over-the-counter products for branded and generic companies in the United States. The company primarily focuses on therapeutic categories of cardiovascular, diabetes management, gastro-intestinal, and pain management. It markets its products in India, the United States, Europe, and the Russian Federation. The company has a co-development and commercialization agreement with Rheoscience A/S for the development and commercialization of Balaglitazone/DRF 2593, a partial PPAR-gamma agonist for the treatment of type 2 diabetes; an agreement with ClinTec Internatio nal for the development of an anti-cancer compound, DRF 1042; collaboration with the National Cancer Institute in Maryland; and an agreement with Argenta Discovery Limited for the joint development and commercialization of a novel approach to the treatment of chronic obstructive pulmonary disease. It also has an agreement with 7TM Pharma for drug discovery collaboration on selected drug targets; and an agreement with GlaxoSmithKline plc to develop and market pharmaceuticals for the treatment of cardiovascular disease, diabetes, oncology, gastroenterology, and pain management. Dr. Reddy?s Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India.

Advisors' Opinion:

• [By Monica Gerson]

  Dr. Reddy's Laboratories (NYSE: RDY) is expected to report its Q4 earnings at $0.52 per share.

  YuMe (NYSE: YUME) is estimated to post a Q1 loss at $0.15 per share on revenue of $35.36 million.

Hot Electric Utility Stocks For 2014: CBIZ Inc (CBZ)

CBIZ, Inc. (CBIZ) provides professional business services, products and solutions. These services are provided to businesses of various sizes, as well as individuals, governmental entities and not-for-profit enterprises throughout the United States and parts of Canada. CBIZ delivers its services through four practice groups: Financial Services, Employee Services, and National Practices. Its Financial Services group includes accounting, tax, financial advisory, valuation, litigation support, internal audit, family office services, fraud detection and real estate advisory. Its Employee Services group provides group health, property and casualty, retirement planning, payroll services, life insurance, human capital management, compensation consulting, recruiting and actuarial services. MMP group includes coding and billing, accounts receivable management and full practice management services. National Practices group includes managed networking and hardware services, health care consulting, and mergers and acquisitions. Effective July 1, 2012, the Company acquired the assets of Stoltz and Company, LTD., L.L.P. In October 2012, it acquired the assets of ProMedical, Inc. On December 31, 2012, the Company acquired the non-attest assets of PHBV Partners, L.L.P. Effective May 1, 2013, it announced that it has acquired Associated Insurance Agents. In September 2013, CBIZ, Inc completed the sale of its Medical Management Professionals (MMP) business to Zotec Partners, LLC.

On January 1, 2011, CBIZ sold its individual wealth management business. Effective November 1, 2011, the Company acquired the defined benefit actuarial consulting practice of PSA Insurance and Financial Services of Hunt Valley, Maryland. During the year ended December 31, 2011, CBIZ acquired four businesses: Thompson Dunavant PLC, Gresham Smith LLC, Multiple Benefit Services, Inc. and Atlantic MDR, LLC (d/b/a Advantage Benefit Planning). On January 1, 2012, the Company acquired Meridian Insurance Group, LLC.

Financial! Services

The Financial Services practice is divided into a Financial Services division, representing the United States, and a National Services division consisting of those units that provide their services nationwide. CBIZ and its subsidiaries maintain joint-referral relationships and administrative service agreements (ASAs) with independent licensed Certified Public Accounting (CPA) firms under which audit and attest services may be provided to CBIZ�� clients by such CPA firms. Under these ASAs, CBIZ provides a range of services to the CPA firms, including (but not limited to) administrative functions, such as office management, bookkeeping, and accounting, preparing marketing and promotion materials, providing office space, computer equipment, and systems support, and leasing administrative and professional staff. As of December 31, 2011, CBIZ maintained ASAs with four CPA firms.

Employee Services

The business units that comprise CBIZ�� Employee Services group are organized between Retail and National Services. The Retail offices provide services within their geographic area. The National group includes a number of specialty operations that provide services on a national scale. CBIZ�� Employee Services group maintains relationships with different insurance carriers. Some of these carriers have compensation arrangements.

National Practices

The National Practices group offers technology, health care consulting, and merger and acquisition services. The units within the National Practices group each have a Business Unit President.

Advisors' Opinion:

• [By Seth Jayson]

  CBIZ (NYSE: CBZ  ) reported earnings on July 29. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended June 30 (Q2), CBIZ whiffed on revenues and missed estimates on earnings per share.

Hot Electric Utility Stocks For 2014: Precision Castparts Corporation(PCP)

Precision Castparts Corp. (PCC) manufactures and sells metal components and products worldwide. Its Investment Cast Products segment offers aerospace structural and airfoil castings; industrial gas turbine (IGT) castings; artificial hips and knees; parts for satellite launch vehicles; landing gear struts and engine inlets for unmanned aerial vehicles; impellers for pumps and compressors; components for armament systems; and alloys for other manufacturers of investment castings. The company?s Forged Products segment provides forged components for jet engines, including fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs, and cases; airframe structural components, such as landing gear beams, bulkheads, wing structures, engine mounts, struts, tail flaps, and housings; discs, spacers, and valve components for steam turbine and IGT engines; shafts, cases, and compressor and turbine discs for marine gas engines; mechanical and structural tubular forged produ cts for energy markets; and forged components for propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves, and structural applications. PCC?s Fastener Products segment offers aerospace fasteners comprising bolts, nuts, nut plates, latches, expandable diameter fasteners, quick release pins, hydraulic fittings, bushings, inserts, collars, and other precision components. It also provides refiner plates and screen cylinders for the pulp and paper industry; metal-injection-molded and ThixoFormed components; grinder pumps and components for sewer systems; gas monitoring systems for the power generation industry; and thread-rolling and trimming dies, pins and steel, and carbide forging tools for fastener production. PCC sells its fastener products and services through a network of distributors and independent sales representatives, as well as through a direct sales and marketing staff. The company was founded in 1949 and is based in Por tland, Oregon.

Advisors' Opinion:

• [By Selena Maranjian]

  Precision Castparts (NYSE: PCP  ) , up 38%, has been busy. The aerospace components maker recently acquired Permaswage for $600 million, and sold Primus Composites to Triumph Group. Its last quarter featured double-digit revenue and earnings growth, benefiting from the acquisition of Titanium Metals. One catalyst for the company is expected growth in commercial airplane sales.

• [By GURUFOCUS]

  Precision Castparts Corp. (PCP) is a prime component supplier to the commercial aircraft manufacturers. Indicative of the attractiveness of this business was The Boeing Company ' s recent announcement that its year - end backlog was 5,080 planes compared to the 648 jets delivered in 2013. By the same token, Airbus ' (a subsidiary of Airbus Group NV) backlog at the end of November was 5,400 versus the 562 planes del ivered in the first eleven months of the year.