2015 Mustang radically new, retro, too

DEARBORN, Mich. — A 1964 copy of the Saturday Evening Post magazine at Ford Motor's archives here has the Beatles on the cover, on the cusp of making a huge splash on the U.S. music scene. Inside, a two-page ad for Kodak photo film, and another ad for the new Ford Mustang.

"The Mustang's the only one still around, intact," says archivist Dean Weber.

Still around, but hardly the same. Thursday, Ford is unveiling a redesigned version for 2015, the sixth-generation Mustang, by Ford's count, since the car was launched on April 17, 1964. It goes on sale next fall.

The Mustang "is important because it has been a symbol of Ford for 50 years," says Jack Nerad, market analyst at Kelley Blue Book.

Bill Ford, chairman of the namesake company, says in a video for employees: "This is the most important product we have, at least to me personally. Every time we unveil a Mustang, the stakes are raised, and yes, I get nervous, but more than that, I'm really excited."

Though Mustang was the original of what came to be called "pony cars," rival Chevrolet Camaro now outsells it. "I'm certain that Chevy's sales success in the segment sticks in the craw of many high-ranking Ford executives. They believe they should own the pony-car segment," Nerad says.

The 2015 is easily recognizable as a Mustang, but there are dramatic chassis, body, interior and drivetrain changes.

Planners decided on evolutionary styling to appeal to traditionalists, but adventuresome enough to draw new buyers. The overall effort, according to theme boards at Ford's huge Mustang styling studio here, has been to deliver a car seen as:

• "Breaking out," illustrated by a picture of a fist smashing through glass.

• Oozing "power and control," illustrated by the haunches of a muscular jungle cat.

• "Masculine and cool," portrayed on the boards by actor Steve McQueen, a Mustang icon for the chase scene in his movie Bullitt.

That last goal comes as most automakers seek more women buyers, b! ut the masculine emphasis simply acknowledges reality.

Jessica Caldwell, senior analyst at Edmunds.com, says women are 26% of Mustang buyers this year, about flat for the past five years. It's 32% for rival Camaro, 27% for Dodge Challenger.

She also notes a "big leap" in Mustang buyers 55 and older, up 12 percentage points in five years, to 36% this year. Mustang buyers under 35 have slipped three points.

Potential new buyers will see a design similar to the outgoing Mustang, but with significant differences in dimensions. The rear wheels are pushed out about 1.6 inches to be flush with the sheetmetal, which is about 2.8 inches wider than the 2014.

Taking advantage of the 2015's new chassis, designers were able to lower the roof 1.5 inches, the hood 1.3 inches and the dashboard about 2.8 inches.

The result: a sleeker look, obvious when it's next to a 2014.

The 2015 Mustang's underpinnings amount to an "all-new" platform, says Raj Nair, Ford's vice president in charge of global product development.

The original idea was to evolve the current chassis. But once Ford decided that the new car would have independent rear suspension (IRS) — a first for mainstream Mustang models. "We started having some trouble with the steering and proportion of the vehicle," Nair says. "We decided fairly late in development to widen the vehicle."

IRS improves handling, ride and steering precision, but is more costly and complicated than the solid rear axle that Mustangs have had since 1964.

The engine selection also didn't work out as planned. The intent was an EcoBoost turbocharged four-cylinder as the base engine and the V-8 as the up-level engine. But a less expensive V-6 was added to be the base, says chief engineer Dave Pericak. "We added the V-6 later in development, as a value item; Mustang's always had a value element," says Pericak.

Thus, the engine lineup will be:

• Base: 3.7-liter V-6, about 300 horsepower.

• Optional: 2.3-liter turbocha! rged EcoB! oost four-cylinder. Ford says it'll have at least 305 hp and significantly more torque than the V-6.

• Top-end: 5-liter V-8, rated "more than 420 hp," he says.

Less dramatic, but likely endearing, new features you might overlook:

• Front roof pillars are realigned, and nearly 1.3 inch thinner. Combined with a new location for the outside mirror, the 2015 has better front visibility.

• Passenger's airbag is in the glove box door, smoothing the look of the dashboard by eliminating the seam for a separate panel. Ford assumes — this remains to be verified in real life — that people won't drive around with the glove box open, which would interfere with bag operation.

• Tires, which now sit flush with the outside edge of the sheetmetal, have "rub" ribs to minimize the chance you'll get curb rash on the expensive alloy wheels most models will have.

• The middle roof pillar is hidden behind the door glass to avoid interrupting the silhouette.

• The convertible, coming at nearly the same time as the coupe, will have the fastest top in the business — up or down in seven seconds. And it'll operate up to 5 mph.

• Front seats — none too soon, some might argue — have "memory recline," so they return to your preferred setting after tipping them forward to let passengers into or out of the back seat.

• New colors to address owner requests, including Triple Yellow (literally painted three times, instead of one or two, to eliminate the "dirty" look of gray primer that yellow has trouble hiding).

"There's actually a Yellow Mustang Club, and boy, do we hear from them when we don't offer a yellow," says Susan Lampinen, the chief designer in charge of color, among other things, for all Ford and Lincoln models.

Best Black Friday deals with biggest markdowns

Black Friday, the biggest shopping day of the year, looms, and once again retailers are offering holiday deals in an attempt to get more shoppers into their stores. Several of the biggest retailers are extending their opening hours even more than in previous years to try to one-up their competition.

The deals listed by retailers are as big as ever. Home Depot, Target, Wal-Mart, and Best Buy, among others, are selling popular items at discounts of 30% or more off their regular price. Retailers plan to sell laptops, HDTVs, and other products at several hundred dollars off. Consulting with several groups that compile Black Friday deals, 24/7 Wall St. identified some of the products with the biggest markdowns.

MORE: Thanksgiving opening hours for eight big retailers

Retailers usually offer the best deals on already established products. For example, several big box stores offer considerable rollbacks on the 50" HDTVs because they have been on the market for several years. Fatwallet.com's Brent Shelton explained, "A couple of years ago, the bigger screens with the lighter technology were still new. But last year, prices really came down as they became less of a novel item."

Many other products offered with significant markdowns are either being phased out and replaced with a new product type or improved versions of the same model. This is the case with laptops, for example. "With laptops, particularly the medium-level laptops, retailers discount them because people are turning to tablets as their general surf-communication device," Shelton said. Laptops can therefore be very good deals for students who don't care about having a tablet, he added.

Despite the many holiday deals, it's probably not the best time to buy some products. Holiday decorations and winter clothing tend to be more expensive now than any time of year because most stores have just put them in stock. There are also products that tend to have better deals during other holidays. For example, the biggest deals for ! tools tend to be during Father's Day. That being said, during Black Friday you can find products at considerable markdowns in nearly every area.

24/7 Wall St. consulted shopping experts at Fatwallet.com, GottaDeal.com, and BFAD.com to identify the Black Friday deals with the biggest discounts compared to the product's MSRP or pre-sale price.

These are the nine best deals on Black Friday:

1. Element 50" 1080p LED HDTV

> Pct. discount: 61.8%

> Retailer: Target

> Black friday price: $229.00

> Was: $599.99

Target plans to offer the Element 50-inch flat-screen TV at a more than 60% discount, which constitutes savings of nearly $400. According to Gottadeal.com, 50-inches is the new "sweet spot" for TV display size. The same TV is available at Wal-mart, which also offers a smaller-sized 40-inch Element for considerably less, $178.

2. Nikon L320 Digital Camera

> Pct. discount: 56.8%

> Retailer: Target

> Black friday price: $99.00

> Was: $229.00

With smartphone users taking pictures with their device at an increasing rate, demand for digital cameras has waned. On Black Friday this year, however, Target will tempt consumers with the Nikon L320 16-megapixel 26x optical zoom digital camera, which is capable of 720p HD movies, as well as a variety of automatic features. Target will offer the camera for less than $100, or $130 off its normal value.

3. Kindle Fire 7" HD 16GB Tablet

> Pct. discount: 53.3%

> Retailer: Staples

> Black friday price: $79.00

> Was: $169.00

The new Kindle Fire HD is lighter than the original model. Other upgrades include a longer battery life, a faster processor, and a sharper display. The market for 7-inch tablets is competitive, with the Nexus 7 and iPad mini both offering similar features. Staples' Black Friday discount of more than 50% on the new Kindle Fire, however, will be difficult to beat.

4. Sony Wifi Blu-ray Player

! > Pct.! discount: 47.6%

> Retailer: Target

> Black friday price: $55.00

> Was: $105.00

On Thanksgiving, Target will cut the price of Sony's WiFi Blu-ray player by nearly half, from $105.00 to $55.00. Since Blu-ray technology has become available, its popularity has risen, especially as old movies, previously unavailable in such high quality, have been enhanced.

MORE: See the rest of the top Black Friday deals with the biggest markdowns

Financial news and commentary website 24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Finally, Someone Else Says Housing Market Rebound Suspicious

 

By Moe Zulfiqar

It’s as bad as expected, or should I say so far so good? I have been critical about the housing market in the U.S. economy for some time now; I don’t buy the blind optimism that is heard in the mainstream these days, which states the housing market will continue to increase at the rate we have seen in 2012. I stand in the camp that says we are not going to see a crash like the one we saw not too long ago, but at the same time, the increase in the U.S. housing market won’t be as exuberant as we witnessed last year—in fact, we might even see a correction going forward.

It’s not just me saying this; Fitch Ratings also agrees with this notion. According to its U.S. RMBS Sustainable Home Price and Economic Risk Factor Report, home prices in the U.S. housing market are overvalued by 17% as per Fitch’s Sustainable Home Prices (SHP) model. The rating agency said that the U.S. housing market has increased 20% year-over-year; this is the highest growth rate in any time in the last 10 years. (Source: “Fitch: Several U.S. Cities Nearing Bubble-Year Home Price Peaks,” Fitch Ratings web site, November 6, 2013.)

Here’s why the housing market looks to be facing hardships going forward.

The U.S. economy is still in trouble, as the financial crisis has left deep wounds that haven’t healed. If someone doesn’t have enough income to pay for their expenses and they’re relying heavily on government assistance, such as food stamps, would they actively look to buy a home? I don’t think it would be their first priority.

In addition to this, the mortgage rates have increased substantially since May of this year. This is all thanks to the quantitative easing taper speculation. What it has done is send those who were thinking of entering the housing market away. When the mortgage rates increase, it makes it more expensive for an individual to own a house. For example, According to the National Association of Realtors, 28% of all existing home sales in the U.S. housing market in September were from first-time home buyers. Compared to last year, this number has declined 12.5% from the same period a year ago. (Source: “Existing-Home Sales Down in September but Prices Rise,” National Association of Realtors web site, October 21, 2013.)

Worst of all, the U.S. housing market saw an influx of investors coming in and buying homes in bulk with cash. We have seen this in the past, when companies like Blackrock, Inc. (NYSE: BLK) purchased a significant amount of residential properties for the sole purpose of renovating and renting them out.

With all this in mind; one must wonder what happens to the homebuilder stocks, since they are closely related to the housing market.

Truth be told, if the housing market in the U.S. economy faces hurdles, the homebuilder stocks will face a precarious future ahead. If investors are heavily invested in them, this may be the time to think and reflect on what’s happening in the U.S. housing market. If they insist on keeping those stocks, then they should consider taking some profits off the table.

This article Finally, Someone Else Says Housing Market Rebound Suspicious was originally published at Daily Gains Letter

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Economics Markets Trading Ideas

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular Earnings Expectations For The Week Of November 11: Walmart And Other Retailers Three iPhone Rumors from the Weekend SLIDESHOW: Larger iPad, iPad Mini Delay And More From The First Week Of November Benzinga's Top #PreMarket Losers The Twitter Week in Review UPDATE: Zalicus Reports Results from Phase 2 Clinical Trials of Z160 in Chronic Neuropathic Pain Related Articles (BLK) Finally, Someone Else Says Housing Market Rebound Suspicious Anything a Bond Can Do, These Stocks Can Do Much, Much Better BlackRock CEO Reports QE Causing Bubbles in Markets ETF Outlook for Friday October 25, 2013 Splurge-Worthy Stocks For Your Portfolio UPDATE: BlackRock Q3 Profit Surges 14% View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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Jobs Growth Slowed in Sept.; Unemployment Rate Drops to 7.2%

After the government shutdown held up its planned release more than two weeks ago, the Department of Labor released its September employment situation report (link opens in PDF) today, and numbers are mixed.

After increasing a revised 193,000 for August, total nonfarm payroll employment eased down to just 148,000 new jobs this past month, well below analyst estimates of 185,000. And while the unemployment rate did manage to slip down 0.1 percentage points to 7.2%, the dip was largely due to declining labor force numbers, rather than more Americans employed.

In the private sector, the biggest employment improvements came from construction (up 20,000), wholesale trade (up 16,000), and transportation and warehousing (up 23,000).

Government work, as well as mining and logging, manufacturing, and information industries, showed little overall employment changes for September. In the only industry decline, food services and drinking places took a slight 7,000-employee hit.

10 Best Medical Stocks To Own Right Now

For those with jobs, September's hourly earnings did manage to edge up 0.1%, although analysts had expected another 0.2% rise from August. In September, average hourly earnings for all employees on private nonfarm payrolls rose by $0.03 to $24.09. Over the year, average hourly earnings have risen by $0.49, or 2.1%.

Average U.S. job growth has fallen sharply in the past three months after a promising start this year. The economy added an average of 143,000 jobs a month from July through September. That was down from the 182,000 average gain during from April through June and well below the 207,000-a-month pace from January through March.

link-- Material from The Associated Press was used in this report.

link

Jefferies Gets Negative on Gold Miners, with an Interesting Pairs Trade Idea

Given the dramatic decline in share prices, some investors may perceive gold equities as inexpensive. The analysts at Jefferies strongly disagree. In their opinion, gold equities rarely have been more expensive, when current gold prices are incorporated. Despite a quintupling of the commodity price from 2003 to 2011, the gold mining majors generated little to no free cash flow. The Jeffries analysts feel the majors likely will generate negative free cash flow over the next several years.

The one thing that is appealing to the team at Jefferies is the volatility in gold. They believe higher interest rates will be the key to force gold prices modestly lower. Regardless of whether the Federal Reserve tapers its efforts or the market raises interest rates by itself, they analysts believe interest rates will go modestly higher. Therefore, they are sticking with a long-term forecast of $1,250 an ounce. They do have an interesting avenue for investors, should they want to put a gold trade on.

The trade is called a pair trade, and it is a common strategy used by portfolio managers on Wall Street. It involves being long and short stocks that are in the same category or sector. In this case, the Jefferies team has put together a trade that involves being long the actual physical gold, while being short the gold miners. Here is how the trade is constructed.

SPDR Gold Trust ETF (NYSEMKT: GLD) is bought as a long position. This is the exchange traded fund that serves as a vehicle for holding the physical gold itself. Typically in a pair trade, the portfolio manager will match the dollar amount of the long and short positions. So investors seeking to put the pair trade on buy the GLD in their account.

Barrick Gold Corp. (NYSE: ABX), Goldcorp Inc. (NYSE: GG), Kinross Gold Corp. (NYSE: KGC) and Newmont Mining Corp. (NYSE: NEM) are all sold short in the account, in equal lots of 25% each. This provides the investor with the basket of stocks that make up the other part of the trade.

The main idea behind the trade is that while physical gold prices often can spike on inflation threats, geopolitical risk and headlines, the actual gold miners are in far bigger trouble from a profit standpoint. Gold mining is an extremely capital intensive and expensive business. Given the short reserve lives, rising costs, rising political risks and a stagnant commodity price, the Jefferies analysts believe an argument could be made that gold equities should trade at valuation discounts to other resource equities. Instead, they continue to garner valuation premiums. So, that continues to make the risk/reward for the North American gold group very unattractive.

For investors wanting just to be either long or short the gold trade, Jefferies does have specific recommendations in its report.

Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) is the favorite name in the space. The company announced Friday that its Indonesian union workers are expected to sign a new contract within two weeks after reaching an agreement over wages. Freeport Indonesia employs about 24,000 workers, including contractors and staff. About three-quarters are union members. This puts one of its top copper mines back in production. The Thomson/First Call price target for the stock is $37.50. Investors are paid a very solid 3.7% dividend. Freeport closed Thursday at $33.01.

Newmont Mining Corp. (NYSE: NEM) is the stock to focus on if investors are looking for a specific gold mining stock to sell short. The stock was hit hard this week on speculation the company would bid for a large copper mine in Peru. The Jefferies target for the stock is $18, and it has an Underperform or Sell rating on the stock. The consensus price target is $32. Investors are paid a 3.6% dividend. Remember, in a short sale the seller is responsible to pay the dividend. Newmont closed Thursday at $26.96.

Gold stocks remain very expensive in Jefferies’ opinion. The analysts believe the only way they make sense is if gold prices rise materially. They also expect the gold equity multiple to continue to compress. The analysts are very in the pair trade that is long gold and short gold equities. This may be a smart way for investors to play what has become a very tricky sector, after a long upward move.

Are Subprime Loans Fueling Auto Sales?

A new report suggests that the Dodge Avenger may be especially popular with subprime new-car buyers. Photo credit: Chrysler

New-car sales have come a long way since the dark days of the economic crisis. Sales in 2009 hit lows not seen since the early 1980s -- but since then, things have picked up considerably. There are a lot of good reasons for that. The economy may not be booming, but more people are back to work, and more people are feeling confident that their jobs aren't in danger.

But lately, there have been a few signs popping up to suggest something worrisome. One of the drivers of new-car sales growth might be one of the factors that caused the economic crisis in the first place: subprime loans.

Car sales are up – and subprime lending may be, too
The worst year for sales in almost 30 years came in 2009, with only 10.4 million "light vehicles" (the industry's term for cars, pickups, and SUVs) sold. That represented a huge drop from the 16-million plus that had been common in the years leading up to 2008's banking crisis.

Sales aren't back to those 16-million-plus levels yet, but they've rebounded nicely. Automakers sold a total of 14.5 million new cars and trucks in the U.S. last year. And they're still improving: Most analysts expect sales to come in well over 15 million in 2013.

We know now, though, that a lot of the growth (not just in car sales) that we saw last decade was driven by subprime lending, the practice of making loans to people with poor credit ratings. Those loans were packaged into "asset-backed securities," sort of like bonds, and sold to hungry investors.

A lot of those investments didn't work out well, because a lot of those loans probably shouldn't have been made in the first place. That practice dropped out of sight for a while, but lately it has started to surface once again -- with car loans. That has some experts worried.

"White hot" demand for securities backed by subprime auto loans
A Reuters report earlier this month noted  that securities made from subprime auto loans were "white-hot" -- and just as in the economic crisis, some concerns are being raised both about the quality of the loans and about the ratings on the securities.

Some issuers are going to "deep, deep subprime," Reuters said -- borrowers with FICO credit scores around 500. And demand for these kinds of securities could be fueling a push to make more loans to subprime car buyers. That, in turn, could be nudging new-car sales upward. And there's some evidence that some automakers are benefiting more than others.

Are some automakers getting an outsized benefit from increased subprime lending?
This past week, auto-lending hub CarFinance.com released a list of the top 10 new vehicles bought by its below-prime borrowers over the last six months. On that list: Four Chrysler products, three Kia (NASDAQOTH: KIMTF  ) products, two Nissans, and a Ford (NYSE: F  ) -- the Focus compact.

At the top of the list? The Dodge Avenger, pictured above.

CarFinance.com's data is a limited pool, but I found it interesting, not least because Chrysler and Kia have both made huge sales gains in the U.S. since the financial crisis.

And we know that a lot of Americans saw their credit ratings take big hits during and after the worst of the downturn. An automaker that was quietly making it easier for folks with damaged credit ratings to buy new cars might be seeing outsized gains nowadays

Is that what's going on?

Not a big deal at Ford, but it might be at Chrysler
It's probably not what is happening at Ford. Ford's in-house financing arm, Ford Credit, has been quite conservative with its lending policies in recent years – shying away, for instance, from joining the trend toward ever-longer auto loan periods. (Those super-long auto loans are a dumb way to buy a new car, by the way.)

Ford Credit CFO Michael Seneski told analysts late last year that neither Ford nor Ford Credit was looking to greatly increase its subprime lending. About 5% to 6% of its loans are considered "high risk," he said at the time, a reasonable number that's in line with the industry average.

The percentage of subprime loans was a bit higher at General Motors (NYSE: GM  ) , which bought subprime lender AmeriCredit back in 2010, but still reasonable.

And that's OK. Subprime loans have been part of the new-car business for a long time. Carefully managed, they can work out well for everybody -- buyers and automakers alike.

But there have been whispers for a while that Chrysler's big sales gains – up 21% last year -- have been fueled by high-volume subprime lending. Last year, credit agency Experian said that 29 of every 100 new-car loans for Chrysler vehicles in the first quarter of 2012 went to buyers with credit scores below 680, which it considers subprime.

Think that could come back to haunt Detroit's No. 3 automaker?

Chrysler owner Fiat (NASDAQOTH: FIATY  ) has been talking lately about a Chrysler IPO, which would return the Detroit automaker's stock to the public exchanges. If Chrysler does decide to go public once again, expect this issue to get a lot of attention.

Thinking about buying Ford stock?
Ford's turnaround has been impressive. But there are great reasons to think that the Blue Oval automaker still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place. Just click here to get started now.

10 Big-Name Stocks Going Ex-Dividend Next Week (Dec 23-27)

Ex-dividend dates are very important to dividend investors, since you must purchase a stock prior to its ex-dividend date in order to receive its upcoming dividend payout. For more information, check out Everything Investors Need to Know About Ex-Dividend Dates.

Below we highlight 10 big-name stocks going ex-dividend for the week of December 23-27:

1. Altria

Altria Group Inc (MO) is set to trade ex-dividend on December 23. The tobacco company offers a dividend yield of 5.03% based on Wednesday's closing price of $38.16 and the company's quarterly dividend payout of 48 cents. The stock is up 21% year-to-date. Dividend.com currently rates MO as “Recommended” with a DARS™ rating of 3.5 stars out of 5 stars.

2. Phillip Morris

Philip Morris International Inc. (PM) is set to trade ex-dividend on December 23. The tobacco company offers a dividend yield of 4.40% based on Wednesday's closing price of $85.48 and the company's quarterly dividend payout of 94 cents. The stock is up 2% year-to-date. Dividend.com currently rates PM as “Recommended” with a DARS™ rating of 3.5 stars out of 5 stars.

3. Kraft

Kraft Foods Group Inc (KRFT) is set to trade ex-dividend on December 24. The packaged foods company offers a dividend yield of 3.94% based on Wednesday's closing price of $53.34 and the company's quarterly dividend payout of 52.5 cents. The stock is up 17% year-to-date. Dividend.com currently rates KRFT as “Recommended” with a DARS™ rating of 3.5 stars out of 5 stars.

4. Illinois Tool Works

Illinois Tool Works Inc. (ITW) is set to trade ex-dividend on December 27. The industrial product maker offers a dividend yield of 2.07% based on Wednesday's closing price of $81.19 and the company's quarterly dividend payout of 42 cents. The stock is up 34% year-to-date. Dividend.com currently rates ITW as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

5. Dow Chemical

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The Dow Chemical Company (DOW) is set to trade ex-dividend on December 27. The chemical company offers a dividend yield of 2.94% based on Wednesday's closing price of $43.51 and the company's quarterly dividend payout of 32 cents. The stock is up 35% year-to-date. Dividend.com currently rates DOW as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

6. Avalon Bay

AvalonBay Communities Inc (AVB) is set to trade ex-dividend on December 27. The real estate investment trust offers a dividend yield of 3.58% based on Wednesday's closing price of $119.63 and the company's quarterly dividend payout of $1.07. The stock is down 11% year-to-date. Dividend.com currently rates AVB as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

7. Deere & Company

Deere & Company (DE) is set to trade ex-dividend on December 27. The agriculture machinery maker offers a dividend yield of 2.28% based on Wednesday's closing price of $89.41 and the company's quarterly dividend payout of 45 cents. The stock is up 67% year-to-date. Dividend.com currently rates DE as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

7. U.S. Bancorp

U.S. Bancorp (USB

American Airlines: History Suggests Post-Merger Doldrums, Barclays Says

Shares of American Airlines (AAL) took flight leading up to its merger with US Airways. Is the ride about to get bumpier?

Bloomberg

Barclays’ David Fintzen and Isaac Husseini say American Airlines shares could start to feel more turbulence. They write:

On the technical side, the stocks are historically volatile and prone to relative underperformance. Even the best performing emergence (LCC as old US air emerged from bankruptcy and closed the America West merger) saw 40% relative out-performance in the first months quickly wiped out, before seeing the shares recover 6-7 months post emergence and solidly out-perform peer airlines in the months following. [Delta Air Lines (DAL)], NWA and UAUA (the pre-merger United  all saw reasonably large post emergence sell-offs, ranging from ~10% ([Delta]), 20% (NWA) and the extreme of ~60% relative declines for UAUA.

Also problematic for American Airlines are post-bankruptcy margins, which have tended to drop, and the timing of integration risks, which don’t typically emerge for a few months.

Still, there is good news: American Airlines’ “extremely competitive cost structure.” Fintzen and Husseini write:

[American Airlines] looks to emerge with a very sizable cost advantage over its largest competitor (12% lower all-in CASM versus [United Continental (UAL)]) and a more modest 2% advantage over [Delta]. Labor costs will escalate going forward ($400m+/yr per management comments), with old-US Airways labor moving to American rates, contractual raises and an eventual 'parity review'. Even including labor mark-up, we think [American Airlines] can sustain a cost advantage to both [United Continental] and [Delta] over the coming years. All that assumes [American Airlines] can contain cost pressures that come with the challenges of integration.

Top 10 Low Price Stocks To Buy For 2014

Fintzen and Husseini started American Airlines with an Equal Weight rating, and a $30 price target.

Shares of American Airlines have dropped 2.1% to $26.06 today at 2:02 p.m., while Delta Air Lines has dropped 3.4% to $26.97 and United Continental has decline 3.2% to $37.25.

Palatin Technologies Close to Being Catapulted (PTN)

At first glance, Palatin Technologies, Inc. (NYSEMKT:PTN) doesn't look like anything particularly special, nor anything particularly investment-worthy. The longer you study the chart of PTN, however, the clearer it becomes... this stock is on the verge of breaking out, and should be on most traders' watchlists.

The name doesn't necessarily suggest it, but Palatin Technologies is actually a biopharma stock. It's got nothing on the market right now, though the PTN pipeline is relatively full. The big kahuna the company is working on is a female sexual-dysfunction drug, currently ready to begin Phase 3 trials. It's got four more drugs in the works too... well, three more drugs taking aim at four more illnesses. Two are in Phase 1 testing, and two more are in preclinical phases. All in all, it's not a bad pipeline for a company of this size, age, and ilk.

The details are relatively inconsequential to anyone who's been following the Palatin Technologies, Inc. saga so far, however. The reason the story got real interesting real quick has everything to do with the chart today, yet nothing to do with any news. In fact, there hasn't been any news from, or even about, PTN in days. That's what makes today's strength even more compelling.

The weekly chart below tells the story as well as any words could. Since early 2012, Palatin Technologies has been in a sideways mode, ending a downtrend that lasted all the way through 2011. With just a quick look, the stock doesn't look it's done anything other that move sideways. When you lay down the horizontal lines, however, you can see we've actually been chipping away at higher highs and higher lows. Fast forward to today. PTN poked through a ceiling at $0.75, and even took a shot at hurdling $0.80. Indeed, the stock hit a high of $0.83 before pulling back to $0.77. The cat's out of the bag though... the bulls have tipped their hand.

5 Best Gold Stocks To Own For 2014

It's still a little premature to jump on the bandwagon, but it's not too soon to start thinking about it. If Palatin Technologies can make a close above $0.80 - and bear in mind it might take a few days for that move to materialize - that should yank the stock out of a sideways rut and kick-start a new uptrend. After two years of consolidation, the pump is primed.

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Top 5 Insurance Companies To Invest In Right Now

As part of the Affordable Care Act, the new Health Insurance Marketplace (or ��xchange�� opens for business on Oct. 1, 2013. The Marketplace is an online, one-stop shopping experience for health coverage designed to make it easier for individuals and families to compare and purchase insurance. Each state has its own Marketplace, which offers a variety of plans from participating health insurance companies.

In addition to finding health coverage, you can use the Marketplace to find out if you qualify for money-saving federal subsidies, including Cost-Sharing Reductions, which can lower your out-of-pocket costs, and Advanced Premium Tax Credits, which lower your monthly premiums. These subsidies are available only on the Marketplace, and can make a significant difference in the type of coverage you might be able to afford. During open enrollment, which runs from Oct. 1 through March 31, 2014, you can set up an account and fill out the online application on your state�� Marketplace to see the health coverage options available to you and find out if you qualify for subsidies.

Top 5 Insurance Companies To Invest In Right Now: Fidelity National Financial Inc. (FNF)

Fidelity National Financial, Inc. provides title insurance, mortgage services, and diversified services in the United States. The company provides title insurance, escrow, and other title related services, including collection and trust activities, trustee’s sales guarantees, recordings, and reconveyances, as well as home warranty insurance to various customers in the residential and commercial market sectors of the real estate industry. It is also involved in the design, manufacture, remanufacture, market, and distribution of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks, and other vehicles worldwide. In addition, the company owns and operates restaurants comprising the O'Charley's, Ninety Nine Restaurants, Max & Erma's, Village Inn, Bakers Square, and Stoney River Legendary Steaks concepts in the United States. Fidelity National Financial, Inc. is headquartered in Jacksonville, Florida.

Advisors' Opinion:

• [By Jon C. Ogg]

  Fidelity National Financial Inc. (NYSE: FNF) was raised to Outperform from Market Perform at Keefe Bruyette & Woods.

  Finish Line Inc. (NASDAQ: FINL) was raised to Buy from Neutral at Janney Capital Markets.

• [By Rich Duprey]

  Title insurance company�Fidelity National Financial (NYSE: FNF  ) announced yesterday its third-quarter dividend of $0.16 per share, the same rate it's paid for the past three quarters after raising the payout 14% from $0.14 per share.

Top 5 Insurance Companies To Invest In Right Now: Metlife Inc (MET)

MetLife, Inc. (MetLife), incorporated on August 10, 1999, is a provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife operates in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. It is organized into six segments: Insurance Products, Retirement Products, Corporate Benefit Funding and Auto & Home (collectively, U.S. Business), and Japan and Other International Regions (collectively, International). In addition, the Company reports certain of its results of operations in Corporate & Other, which includes MetLife Bank, National Association (MetLife Bank) and other business activities. U.S. Business provides insurance and financial services products, including life, dental, disability, auto and homeowner insurance, guaranteed interest and stable value products, and annuities through independent retail distribution channels, as well as at the workplace. Outside the U.S., it operates in Japan and over 50 countries within Latin America, Asia Pacific, Europe and the Middle East. MetLife is the life insurer in Mexico and also holds positions in Japan, Poland, Chile and Korea. This business provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement and savings products to both individuals and groups. In August 2012, it acquired Reynolds Plantation. In January 2013, the Company completed the sale of MetLife Bank, N.A.'s deposit business. Effective July 25, 2013, MetLife Inc acquired Broadstone Laurel Highlands, from Alliance Residential Fund I. In September 2013, MetLife Inc and Thayer Lodging Group acquired the 365-room Hilton Los Cabos Beach & Golf Resort in Cabo San Lucas, Mexico in a joint venture.

Insurance Products

The Insurance Products segment offers a range of protection products and services aimed at serving the financial needs of its customers throughout their lives. These pro! ducts are sold to individuals and corporations, as well as other institutions and their respective employees. It is organized in three businesses: Group Life, Individual Life and Non-Medical Health.

The Group Life insurance products and services include variable life, universal life, and term life products. It offer group insurance products as employer-paid benefits or as voluntary benefits where all or a portion of the premiums are paid by the employee. These group products and services also include employee paid supplemental life and are offered as standard products or may be tailored to meet specific customer needs.

The Individual Life insurance products and services include variable life, universal life, term life and whole life products. Additionally, through its broker-dealer affiliates, it offers a full range of mutual funds and other securities products. The products within both Group Life and Individual Life include Variable Life, Universal Life, Term Life and Whole Life. Variable life products provide insurance coverage through a contract that gives the policyholder the policyholder flexibility in investment choices and, depending on the product, in premium payments and coverage amounts, with certain guarantees. With variable life products, premiums and account balances can be directed by the policyholder into a variety of separate account investment options or directed to the Company�� general account. In the separate account investment options, the policyholder bears the entire risk of the investment results.

Universal life products provide insurance coverage on the same basis as variable life, except that premiums, and the resulting accumulated balances, are allocated only to the Company�� general account. Universal life products may allow the insured to increase or decrease the amount of death benefit coverage over the term of the contract and the owner to adjust the frequency and amount of premium payments.

Term life products provid! e a guara! nteed benefit upon the death of the insured for a specified time period in return for the periodic payment of premiums. Specified coverage periods range from one year to 30 years, but in no event are they longer than the period over, which premiums are paid. Death benefits may be level over the period or decreasing. Decreasing coverage is used principally to provide for loan repayment in the event of death. Premiums may be guaranteed at a level amount for the coverage period or may be non-level and non-guaranteed. Term insurance products are sometimes referred to as pure protection products, in that there are typically no savings or investment elements. Term contracts expire without value at the end of the coverage period when the insured party is still living.

Whole life products provide a guaranteed benefit upon the death of the insured in return for the periodic payment of a fixed premium over a predetermined period. Premium payments may be required for the entire life of the contract period, to a specified age or period, and may be level or change in accordance with a predetermined schedule. Whole life insurance includes policies that provide a participation feature in the form of dividends. Policyholders may receive dividends in cash or apply them to increase death benefits, increase cash values available upon surrender or reduce the premiums required to maintain the contract in-force.

The Non-Medical Health products and services include dental insurance, group short- and long-term disability, individual disability income, long-term care (LTC), critical illness and accidental death & dismemberment coverage. Other products and services include employer-sponsored auto and homeowners insurance provided through the Auto & Home segment and prepaid legal plans. The Company also sells administrative services-only (ASO) arrangements to some employers. The products in this area are Dental, Disability and Long-term Care (LTC). Dental products provide insurance and ASO plans that ass! ist emplo! yees, retirees and their families in maintaining oral health while reducing out-of-pocket expenses and providing superior customer service. Dental plans include the Preferred Dentist Program and the Dental Health Maintenance Organization. Disability products provide a benefit in the event of the disability of the insured. This benefit is in the form of monthly income paid until the insured reaches age 65. In addition to income replacement, the product may be used to provide for the payment of business overhead expenses for disabled business owners or mortgage payment protection. This is offered on both a group and individual basis. LTC products provide protection against the potentially high costs of LTC services. They generally pay benefits to insureds that need assistance with activities of daily living or have a cognitive impairment.

Retirement Products

The Retirement products segment includes a variety of variable and fixed annuities that are primarily sold to individuals and employees of corporations and other institutions. The products in this area are Variable Annuities and Fixed Annuities. Variable annuities provide for both asset accumulation and asset distribution needs. Variable annuities allow the contract holder to make deposits into various investment options in a separate account, as determined by the contract holder. The risks associated with such investment options are borne entirely by the contract holder, except where guaranteed minimum benefits are involved.

Fixed annuities provide for both asset accumulation and asset distribution needs. Fixed annuities do not allow the same investment flexibility provided by variable annuities, but provide guarantees related to the preservation of principal and interest credited.

Corporate Benefit Funding

The Corporate Benefit Funding segment includes a range of annuity and investment products, including, guaranteed interest products and other stable value products, income annuitie! s, and se! parate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes certain products to fund postretirement benefits and company, bank or trust owned life insurance used to finance non-qualified benefit programs for executives. The products in this area are Stable Value Products, Pensions Closeouts, Torts and Settlements, Capital Markets Investment Products and other Corporate Benefit Funding Products and Services. The Company offers general account guaranteed interest contracts, separate account guaranteed interest contracts, and similar products used to support the stable value option of defined contribution plans. It also offers private floating rate funding agreements that are used for money market funds, securities lending cash collateral portfolios and short-term investment funds.

The Company offers general account and separate account annuity products, generally in connection with the termination of defined benefit pension plans, both in the United States and the United Kingdom. It also offers partial risk transfer solutions that allow for partial transfers of pension liabilities and annuity products that include single premium buyouts. It offers strategies for complex litigation settlements, primarily structured settlement annuities. Under the Capital Markets Investment Products, the products offered include funding agreements, Federal Home Loan Bank advances and funding agreement-backed commercial paper. Under the Other Corporate Benefit Funding Products and Services, it offers specialized insurance products designed specifically to provide solutions for non-qualified benefit and retiree benefit funding purposes.

Auto & Home

The Auto & Home segment includes personal lines property and casualty insurance offered directly to employees at their employer�� worksite, as well as to individuals through a variety of retail distribution channels, including independent agents, property and casu! alty spec! ialists, direct response marketing and the individual distribution sales group. Auto & Home primarily sells auto insurance, which represented 67% of Auto & Home�� total net earned premiums in 2011. Homeowners and other insurance represented 33% of Auto & Home�� total net earned premiums in 2011. The products in this area are Auto Coverages and Homeowners and Other Coverages. Auto insurance policies provide coverage for private passenger automobiles, utility automobiles and vans, motorcycles, motor homes, antique or classic automobiles and trailers. Auto & Home offers traditional coverage, such as liability, uninsured motorist, no fault or personal injury protection, as well as collision and comprehensive. Homeowners��insurance policies provide protection for homeowners, renters, condominium owners and residential landlords against losses arising out of damage to dwellings and contents from a variety of perils, as well as coverage for liability arising from ownership or occupancy. Other insurance includes personal excess liability (protection against losses in excess of amounts covered by other liability insurance policies), and coverage for recreational vehicles and boat owners. Most of Auto & Home�� homeowners��policies are traditional insurance policies for dwellings, providing protection for loss on a replacement cost basis. These policies also provide additional coverage for reasonable, normal living expenses incurred by policyholders that have been displaced from their homes.

International

International provides life insurance, accident and health insurance, credit insurance, annuities, endowment and retirement & savings products to both individuals and groups. The Company focuses on markets primarily within Japan, Latin America, Asia Pacific, Europe and the Middle East. It operates in international markets through subsidiaries and affiliates. The Company operates in 22 countries in Latin America, with operations in Mexico, Chile and Argentina. It operates in fou! r countri! es in Asia Pacific with operations in Korea, Hong Kong and Australia. It operates in 35 countries in Europe and the Middle East with operations in Poland, the United Kingdom, France, and the United Arab Emirates, as well as through a consolidated joint venture in India.

Corporate & Other

Corporate & Other contains the excess capital not allocated to the segments, which is invested to optimize investment spread and to fund company initiatives and various start-up and run-off entities. Mortgage products offered by MetLife Bank include forward and reverse residential mortgage loans. Residential mortgage loans are originated through MetLife Bank�� national sales force, mortgage brokers and mortgage correspondents. The residential mortgage banking activities include the origination and servicing of mortgage loans. Mortgage loans are held-for-investment or sold primarily into Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) or Government National Mortgage Association (GNMA) securities. Deposit products include traditional savings accounts, money market savings accounts, certificates of deposit (CDs) and individual retirement accounts.

Advisors' Opinion:

• [By Ben Levisohn]

  MetLife (MET) has gained 3.1% to $48.53, while�Prudential�(PRU) has climbed 3.1% to $78.29 after Barclays upgraded the stocks to Overweight from Equal Weight Underweight. Analyst Jay Gelb and team explain why:

• [By Amanda Alix]

  Pity poor MetLife (NYSE: MET  ) . Never has a life insurer shed more in an attempt to wind up with less. In MetLife's case, its sale of its retail banking unit to GE Capital (NYSE: GE  ) was an exercise in frustration, as one regulatory hurdle rose up to replace those already vanquished. At the end of last year, the sale was finally given the green light, effectively pulling MetLife out from under the banking regulators' scrutiny.

• [By Steve Sears]

  New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).

10 Best Undervalued Stocks To Buy For 2014: Citizens Inc (CIA)

Citizens, Inc. (Citizens), incorporated on November 8, 1977, is an insurance holding company serving the life insurance needs of individuals in the United States. The Company operates in three segments: Life Insurance, Home Service and Other Non-insurance Enterprises. Its core insurance operations include issuing and servicing the United States Dollar-denominated ordinary whole life insurance and endowment policies predominantly to high net worth, high income foreign residents, principally in Latin America and the Pacific Rim, through independent marketing consultants; ordinary whole life insurance policies to middle income households concentrated in the midwest and southern United States through independent marketing consultants, and final expense and limited liability property policies to middle and lower income households in Louisiana, Arkansas, and Mississippi through employee and independent agents in its home service distribution channel.

Life Insurance

The Company�� Life Insurance segment issues ordinary whole life insurance domestically and in United States Dollar-denominated amounts to foreign residents. These contracts are designed to provide a fixed amount of insurance coverage over the life of the insured. Additionally, endowment contracts are issued by the Company, which are principally accumulation contracts that incorporate an element of life insurance protection. The Company operates the segment through its subsidiaries: CICA Life Insurance Company of America (CICA) and Citizens National Life Insurance Company (CNLIC).

The Company offers several ordinary whole life insurance and endowment products designed to meet the needs of its non-United States policy owners. Its domestic life insurance products focus primarily on living needs and provide benefits focused toward accumulating money for the policyowner. The Company�� life insurance products are principally designed to address the insured�� concern about outliving his or her monthly income,! while at the same time providing death benefits. The primary purpose of its product portfolio is to help the insured create capital for needs, such as retirement income, children's higher education funds, business opportunities, emergencies and health care needs.

Home Service Insurance

The Company operates in the Home Service market through its subsidiaries Security Plan Life Insurance Company (SPLIC) and Security Plan Fire Insurance Company (SPFIC), and focus on the life insurance needs of the middle and lower income markets, primarily in Louisiana, Mississippi and Arkansas. Its home service insurance products consist primarily of small face amount ordinary whole life and pre-need policies, which are designed to fund final expenses for the insured, primarily consisting of funeral and burial costs.

Other Non-Insurance Enterprises

Other Non-insurance Enterprises includes Computing Technology, Inc., which provides data processing services to the Company, and Insurance Investors, Inc., which provides aviation transportation to the Company. This segment also includes the results of Citizens, Inc., the parent Company.

Top 5 Insurance Companies To Invest In Right Now: Berkshire Hathaway Inc (BRKA)

Berkshire Hathaway Inc. (Berkshire) is a holding company owning subsidiaries engaged in a number of diverse business activities. The Company is engaged in insurance businesses conducted on both a primary basis and a reinsurance basis. Berkshire also owns and operates a number of other businesses engaged in a variety of activities. On December 30, 2011, Medical Protective Corporation (MedPro) completed the acquisition of 100% of the Princeton Insurance Company, a professional liability insurer for healthcare providers based in Princeton, New Jersey. During the year ended December 31, 2011, Acme Building Brands (Acme) acquired the assets of Jenkins Brick Company, the brick manufacturer in Alabama. In September 2011, Berkshire acquired The Lubrizol Corporation (Lubrizol). In June 2011, the Company acquired Wesco Financial Corporation. In June 2012, Media General, Inc. sold 63 daily and weekly newspapers to World Media Enterprises, Inc., a subsidiary of Berkshire. In July 2012, Berkshire�� The Lubrizol Corporation acquired Lipotec SA.

Insurance and Reinsurance Businesses

Berkshire�� insurance and reinsurance business activities are conducted through numerous domestic and foreign-based insurance entities. Berkshire�� insurance businesses provide insurance and reinsurance of property and casualty risks world-wide and also reinsure life, accident and health risks world-wide. Berkshire�� insurance underwriting operations are consisted of the sub-groups, including GEICO and its subsidiaries, General Re and its subsidiaries, Berkshire Hathaway Reinsurance Group and Berkshire Hathaway Primary Group. GEICO insurance subsidiaries include Government Employees Insurance Company, GEICO General Insurance Company, GEICO Indemnity Company and GEICO Casualty Company. These companies primarily offers private passenger automobile insurance to individuals in all 50 states and the District of Columbia. In addition, GEICO insures motorcycles, all-terrain vehicles, recreational vehicles and s! mall commercial fleets and acts as an agent for other insurers who offer homeowners, boat and life insurance to individuals. GEICO markets its policies primarily through direct response methods in which applications for insurance are submitted directly to the companies through the Internet or by telephone.

General Re Corporation (General Re) is the holding company of General Reinsurance Corporation (GRC) and its subsidiaries and affiliates. GRC�� subsidiaries include General Reinsurance AG, a international reinsurer based in Germany. General Re subsidiaries conduct business activities globally in 51 cities and provide insurance and reinsurance coverages throughout the world. General Re provides property/casualty insurance and reinsurance, life/health reinsurance and other reinsurance intermediary and risk management, underwriting management and investment management services.

Property/Casualty Reinsurance

General Re�� property/casualty reinsurance business in North America is conducted through GRC. Property/casualty operations in North America are also conducted through 16 branch offices in the United States and Canada. Reinsurance activities are marketed directly to clients without involving a broker or intermediary. General Re�� property/casualty business in North America also includes specialty insurers (primarily the General Star and Genesis companies domiciled in Connecticut and Ohio). These specialty insurers underwrite primarily liability and workers��compensation coverages on an excess and surplus basis and excess insurance for self-insured programs. General Re�� international property/casualty reinsurance business operations are conducted through internationally-based subsidiaries on a direct basis (through General Reinsurance AG, as well as several other General Re subsidiaries in 25 countries) and through brokers (primarily through Faraday, which owns the managing agent of Syndicate 435 at Lloyd�� of London and provides capacity and particip! ates in 1! 00% of the results of Syndicate 435).

Life/Health Reinsurance

General Re�� North American and international life, health, long-term care and disability reinsurance coverages are written on an individual and group basis. Most of this business is written on a proportional treaty basis, with the exception of the United States group health and disability business which is predominately written on an excess treaty basis. Lesser amounts of life and disability business are written on a facultative basis. The life/health business is marketed on a direct basis. The Berkshire Hathaway Reinsurance Group (BHRG) operates from offices located in Stamford, Connecticut. Business activities are conducted through a group of subsidiary companies, led by National Indemnity Company (NICO) and Columbia Insurance Company (Columbia). BHRG provides principally excess and quota-share reinsurance to other property and casualty insurers and reinsurers. BHRG�� underwriting activities also include life reinsurance and life annuity business written through Berkshire Hathaway Life Insurance Company of Nebraska and financial guaranty insurance written through Berkshire Hathaway Assurance Corporation.

BHRG writes catastrophe excess-of-loss treaty reinsurance contracts. BHRG also writes individual policies for primarily large or otherwise unusual discrete risks on both an excess direct and facultative reinsurance basis, referred to as individual risk, which includes policies covering terrorism, natural catastrophe and aviation risks. A catastrophe excess policy provides protection to the counterparty from the accumulation of primarily property losses arising from a single loss event or series of related events. Catastrophe and individual risk policies may provide amounts of indemnification per contract and a single loss event may produce losses under a number of contracts. BHRG also underwrites traditional non-catastrophe insurance and reinsurance coverages, referred to as multi-line property/c! asualty b! usiness.

The Berkshire Hathaway Primary Group is a collection of primary insurance operations that provide a variety of insurance coverages to insureds located principally in the United States. NICO and certain affiliates underwrite motor vehicle and general liability insurance to commercial enterprises on both an admitted and excess and surplus basis. This business is written nationwide primarily through insurance agents and brokers and is based in Omaha, Nebraska. U.S. Investment Corporation (USIC), through its three subsidiaries led by United States Liability Insurance Company, is a specialty insurer that underwrites commercial, professional and personal lines of insurance on an admitted and excess and surplus basis. Policies are marketed in all 50 states and the District of Columbia through wholesale and retail insurance agents. USIC companies underwrite and market 109 distinct specialty property and casualty insurance products. Medical Protective Corporation (MedPro) is based in Fort Wayne, Indiana. Through its subsidiary, the Medical Protective Company, MedPro is engaged in primary medical professional liability coverage and risk solutions to physicians, dentists, other healthcare providers and healthcare facilities.

Railroad Business

Through BNSF Railway, BNSF operates a railroad network in North America with approximately 32,000 route miles of track (excluding multiple main tracks, yard tracks and sidings) in 28 states and two Canadian provinces as of December 31, 2011. BNSF owns approximately 23,000 route miles, including easements, and operates on approximately 9,000 route miles of trackage rights that permit BNSF to operate its trains with its crews over other railroads��tracks. As of December 31, 2011, the total BNSF Railway system, including single and multiple main tracks, yard tracks and sidings, consisted of approximately 50,000 operated miles of track, all of which are owned by or held under easement by BNSF except for approximately 10,000 route! miles op! erated under trackage rights.

BNSF is based in Fort Worth, Texas, and through BNSF Railway Company operates railroad systems in North America. In serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and ports of the country, BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. In serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and ports of the country, BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. Over half of the freight revenues of BNSF are covered by contractual agreements of varying durations. BNSF�� primary routes, including trackage rights, allow it to access cities and ports in the western and southern United States as well as parts of Canada and Mexico. In addition to cities and ports, BNSF efficiently serves many smaller markets by working closely with approximately 200 shortline partners. BNSF has also entered into marketing agreements with other rail carriers, expanding the marketing reach for each railroad and their customers.

Utilities and Energy Businesses

MidAmerican�� businesses are managed as separate operating units. MidAmerican�� domestic regulated energy interests are comprised of two regulated utility companies serving more than three million retail customers and two interstate natural gas pipeline companies with approximately 16,600 miles of pipeline and a design capacity of approximately 7.7 billion cubic feet of natural gas per day. Its United Kingdom electricity distribution subsidiaries serve about 3.9 million electricity end-users. In addition, MidAmerican�� interests include a diversified portfolio of domestic independent power projects, a hydroelectric facility in the Philippines and residential real estate brokerage firm in the United States.

PacifiCorp is a regulated electric utility compa! ny headqu! artered in Oregon, serving regulated retail electric customers in portions of Utah, Oregon, Wyoming, Washington, Idaho and California. The combined service territory�� diverse regional economy ranges from rural, agricultural and mining areas to urban, manufacturing and government service centers. As a vertically integrated electric utility, PacifiCorp owns approximately 10,600 net megawatts of generation capacity. MidAmerican Energy Company (MEC) is a regulated electric and natural gas utility company headquartered in Iowa, serving regulated retail electric and natural gas customers primarily in Iowa and also in portions of Illinois, South Dakota and Nebraska. MEC has a diverse customer base consisting of residential, agricultural and a variety of commercial and industrial customer groups. In addition to retail sales and natural gas transportation, MEC sells regulated electricity to markets operated by regional transmission organizations and regulated electricity and natural gas to other utilities and market participants on a wholesale basis and sells non-regulated electricity and natural gas services in deregulated markets. As a vertically integrated electric and gas utility, MEC owns approximately 7,000 net megawatts of generation capacity.

The natural gas pipelines consist of Northern Natural Gas Company (Northern Natural) and Kern River Gas Transmission Company (Kern River). Northern Natural is based in Nebraska and owns interstate natural gas pipeline systems in the United States reaching from southern Texas to Michigan�� Upper Peninsula. Northern Natural�� pipeline system consists of approximately 14,900 miles of natural gas pipelines. Northern Natural has access to supplies from mid-continent basin and provides transportation services to utilities and numerous other customers. Northern Natural also operates three underground natural gas storage facilities and two liquefied natural gas storage peaking units.

Kern River is based in Utah and owns an interstate natural! gas pipe! line system that consists of approximately 1,700 miles and extends from the supply areas in the Rocky Mountains to consuming markets in Utah, Nevada and California. Kern River transports natural gas for electric utilities and natural gas distribution utilities, oil and natural gas companies or affiliates of such companies, electricity generating companies, energy marketing and trading companies, and financial institutions. The United Kingdom utilities consist of Northern Powergrid (Northeast) Limited (Northern Powergrid (Northeast)) and Northern Powergrid (Yorkshire) plc (Northern Powergrid (Yorkshire)), which own a substantial United Kingdom electricity distribution network that delivers electricity to end-users in northeast England in an area covering approximately 10,000 square miles. The distribution companies primarily charge supply companies regulated tariffs for the use of electrical infrastructure. MidAmerican also owns HomeServices of America, Inc. (HomeServices), a full-service residential real estate brokerage firm in the United States. HomeServices also offers integrated real estate services, including mortgage originations through a joint venture, title and closing services, property and casualty insurance, home warranties, relocation services and other home-related services. It operates under 22 residential real estate brand names with over 14,000 sales associates and in nearly 300 brokerage offices in 20 states.

Manufacturing, Service and Retailing Businesses

Berkshire�� numerous and diverse manufacturing, service and retailing businesses. Marmon consists of approximately 140 manufacturing and service businesses that operate independently within eleven diverse, stand-alone business sectors. These sectors are Building Wire, Crane Services, Distribution Services, Engineered Wire and Cable, Flow Products, Food Service Equipment, Highway Technologies, Industrial Products, Retail Store Fixtures, Transportation Services and Engineered Products and Water Treatment.

!

Building Wire, providing copper electrical building wire for residential, commercial and industrial construction. Crane Services provides the leasing and operation of mobile cranes primarily to the energy, mining and petrochemical markets. Distribution Services, supplying specialty metal pipe and tubing, bar and sheet products to markets including construction, industrial, aerospace and many others. Engineered Wire & Cable, providing electrical and electronic wire and cable for energy related markets and other industries. Flow Products is producing copper tube for the plumbing, heating, ventilation, and air conditioning (HVAC), refrigeration, and industrial markets. Food Service Equipment is supplying commercial food preparation equipment for restaurants and shopping carts for retail stores. Highway Technologies, primarily serving the heavy-duty highway transportation industry with trailers, fifth wheel coupling devices and undercarriage products such as brake parts and suspension systems, and also serving the light vehicle aftermarket with clutches and related products.

Industrial Products, consisting of metal fasteners for the building, furniture, cabinetry, industrial and other markets, gloves for industrial markets, portable lighting equipment for mining and safety markets, overhead electrification equipment for mass transit systems, custom-machined brass, aluminum and copper forgings for the construction, valve and other industries, brass fittings and valves for commercial and industrial applications, and drawn aluminum tubing and extruded aluminum shapes for the construction, automotive, appliance, medical and other markets . Retail Store Fixtures, providing shelving and other merchandising displays and related services for retail stores worldwide. Transportation Services & Engineered Products, including manufacturing, leasing and maintenance of railroad tank cars, leasing of intermodal tank containers, in-plant rail services, manufacturing of bi-modal railcar movers, wheel, axle ! and gear ! sets for light rail transit and gear products for locomotives, manufacturing of steel tank heads, and services, equipment and technology for processing and distributing sulfur. Water Treatment, equipment including residential water softening, purification and refrigeration filtration systems, treatment systems for industrial markets including power generation, oil and gas, chemical, and pulp and paper, gear drives for irrigation systems and cooling towers, and air-cooled heat exchangers. Marmon operates approximately 300 manufacturing, distribution and service facilities that are primarily located in North America, Europe and China, and employs more than 16,000 people worldwide.

McLane Company, Inc. (McLane) provides wholesale distribution and logistics services in all 50 states and internationally in Brazil to customers that include discount retailers, convenience stores, wholesale clubs, quick service restaurants, drug stores and military bases. Operations are divided into five business units: grocery distribution, foodservice distribution, beverage distribution, international logistics and software development. McLane�� foodservice distribution unit, based in Carrollton, Texas, focuses on serving the quick service restaurant industry. Operations are conducted through 18 facilities in 16 states. The foodservice distribution unit services more than 20,000 chain restaurants nationwide.

Other Manufacturing, Other Service and Retailing Businesses

Berkshire�� apparel manufacturing businesses include manufacturers of a variety of clothing and footwear. Businesses engaged in the manufacture and distribution of clothing products include Fruit of the Loom, Inc. (Fruit), Russell Brands, LLC (Russell), Vanity Fair Brands, LP (VFB), Garan and Fechheimer Brothers. Berkshire�� footwear businesses include H.H. Brown Shoe Group, Justin Brands and Brooks Athletic. Fruit, Russell and VFB (together FOL) is primarily a vertically integrated manufacturer and distributor of ba! sic appar! el, underwear and athletic apparel and products. Products, under the Fruit of the Loomand JERZEES labels are primarily sold in the mass merchandise and wholesale markets. In the VFB product line, Vassarette, Bestformand Curvationare sold in the mass merchandise market, while Vanity Fairand Lily of Franceproducts are sold in the mid-tier chains and department stores. FOL also markets and sells athletic uniforms, apparel, sports equipment and balls to team dealers; college licensed tee shirts and fleecewear to college bookstores and mid-tier merchants; and athletic apparel, sports equipment and balls to sporting goods retailers under the Russell Athleticand Spaldingbrands. Additionally, Spaldingmarkets and sells balls in the mass merchandise market and dollar store channel. During the year ended December, 31, 2011, approximately 30% of FOL�� sales were to Wal-Mart. FOL generally performs its own spinning, knitting, cloth finishing, cutting, sewing and packaging.

Garan designs, manufactures, imports and sells apparel primarily for children, including boys, girls, toddlers and infants. Products are sold under its own trademark Garanimalsand private labels of its customers. Garan also licenses its registered trademark Garanimalsto independent third parties. Garan conducts its business through operating subsidiaries located in the United States, Central America and Asia. Substantially all of Garan�� products are sold through its distribution centers in the United States to national chain stores, department stores and specialty stores. In 2011, over 90% of Garan�� sales were to Wal-Mart. Fechheimer Brothers manufactures, distributes and sells uniforms, principally for the public service and safety markets, including police, fire, postal and military markets. Fechheimer Brothers is based in Cincinnati, Ohio.

Justin Brands and H.H. Brown Shoe Group manufacture and distribute work, rugged outdoor and casual shoes and western-style footwear under a number of brand names, including! Justin, ! Tony Lama, Nocona, Chippewas, Born, Sofft, Carolina, Double-H Boots, Corcoran, Matterhornand Kork-Ease. Brooks Athletic markets and sells running footwear to specialty retailers under Brooksbrand. In 2011, Brooksachieved #1 market share in footwear with specialty retailers. A volume of the shoes sold by Berkshire�� shoe businesses are manufactured or purchased from sources outside the United States. Products are principally sold in the United States through a variety of channels including department stores, footwear chains, specialty stores, catalogs and the Internet, as well as through Company-owned retail stores.

Acme manufactures and distributes clay bricks (Acme Brickand Jenkins Brick), concrete block (Featherlite) and cut limestone (Texas Quarries). In addition, Acme distributes a number of other building products of other manufacturers, including glass block, floor and wall tile and other masonry products. Acme also sells ceramic floor and wall tile, as well as marble, granite and other stones through its subsidiary, American Tile and Stone. Products are sold primarily in the South Central and South Eastern United States through Company-operated sales offices. Acme distributes products primarily to homebuilders and masonry and general contractors.

Benjamin Moore & Co. (Benjamin Moore) is a formulator, manufacturer and retailer of a range of architectural coatings, available principally in the United States and Canada. Products include water-thinnable and solvent-thinnable general purpose coatings (paints, stains and clear finishes) for use by the general public, contractors and industrial and commercial users. Products are marketed under various registered brand names, including Regal, Superspec, Moorcraft, Moorgard, Aura, Nattura, ben, Coronado Paint, Insl-xand Lenmar.

Benjamin Moore and its manufacturing subsidiaries rely primarily on an independent dealer network for the distribution of its products. Its distribution network includes approximately 100! Company-! owned stores as well as over 4,500 third party retailers representing over 10,300 storefronts in the United States and Canada. Benjamin Moore�� Company-owned stores represent several multiple-outlet and stand-alone retailers in various parts of the United States and Canada serving primarily contractors and general consumers. The independent retailer channel offers an array of products including Benjamin Mooreand Insl-xbrands and other competitor coatings, wallcoverings, window treatments and sundries. Benjamin Moore also has three color stations located in regional malls that serve as brand marketing tools. In addition to the independent retailer channel, Benjamin Moore has recently begun to sell direct to the consumer through e-commerce sites and its customer care program, which includes national accounts and government agencies.

Johns Manville (JM) is a manufacturer and marketer of products for building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and nonwovens for commercial, industrial and residential applications. JM serves markets that include aerospace, automotive and transportation, air handling, appliance, HVAC, pipe and equipment filtration, waterproofing, building, flooring, interiors and wind energy. Fiber glass is the basic material in a majority of JM�� products, although JM also manufactures a portion of its products with other materials to satisfy the broader needs of its customers. JM regards its patents and licenses as valuable, however it does not consider any of its businesses to be materially dependent on any single patent or license. JM is headquartered in Denver, Colorado, and operates 40 manufacturing facilities in North America, Europe and China and conducts research and development at several other facilities. JM sells its products through a variety of channels, including contractors, distributors, retailers, manufacturers and fabricators.

MiTek is a provider of engineered connector products, engine! ering sof! tware and services and computer-driven manufacturing machinery to the truss fabrication segment of the building components industry. Primary customers are truss fabricators who manufacture pre-fabricated roof and floor trusses and wall panels for the residential building market, as well as the light commercial and institutional construction industry. MiTek also participates in the light gauge steel framing market under the Ultra-Spanname, manufactures and markets assembly line machinery used by the lead acid battery industry, manufactures and markets a line of masonry connector products and manufactures and markets air handling systems used in commercial building. MiTek operates on six continents with sales into approximately 90 countries. MiTek has 34 manufacturing facilities located in eleven countries and 45 sales/engineering offices located in 17 countries.

The Shaw Industries Group, Inc. (Shaw) is a carpet manufacturer based on both revenue and volume of production. Shaw designs and manufactures over 3,000 styles of tufted carpet, tufted and woven rugs, laminate and wood flooring for residential and commercial use under about 30 brand and trade names and under certain private labels. Shaw also provides installation services and sells ceramic and vinyl tile along with sheet vinyl. Shaw�� manufacturing operations are fully integrated from the processing of raw materials used to make fiber through the finishing of carpet. Shaw�� carpet, rugs and hard surface products are sold in a broad range of prices, patterns, colors and textures.

Shaw products are sold wholesale to over 40,000 retailers, distributors and commercial users throughout the United States, Canada and Mexico and are also exported to various overseas markets. Shaw�� wholesale products are marketed domestically by over 2,000 salaried and commissioned sales personnel directly to retailers and distributors and to national accounts. Shaw�� 10 carpet full-service distribution facilities, three hard surface an! d two rug! full-service distribution facilities and 24 redistribution centers, along with centralized management information systems, enable it to provide prompt efficient delivery of its products to both its retail customers and wholesale distributors.

Berkshire acquired an 80% interest in IMC International Metalworking Companies B.V. (IMC B.V.). Through its subsidiaries, IMC B.V. is a multinational manufacturers of consumable precision carbide metal cutting tools for applications in a range of industrial end markets under the brand names ISCAR, TaeguTec, Ingersoll, Tungaloy, Unitac, UOP It.te.diand Outiltec. IMC B.V.�� manufacturing facilities are located in Israel, United States, Germany, Italy, France, Switzerland, South Korea, China, India, Japan and Brazil. IMC B.V. has five primary product lines: milling tools, gripping tools, turning/thread tools, drilling tools and tooling. Forest River, Inc. (Forest River) is a manufacturer of recreational vehicles, utility, cargo and office trailers, buses and pontoon boats, headquartered in Elkhart, Indiana. Its products are sold in the United States and Canada through an independent dealer network.

Scott Fetzer companies are a diversified group of 20 businesses that manufacture and distribute a variety of products for residential, industrial and institutional use. The two of these businesses are Kirby home cleaning systems and Campbell Hausfeld products. Albecca Inc. (Albecca), headquartered in Norcross, Georgia, does business primarily under the Larson-Juhlname. Albecca designs, manufactures and distributes a complete line of branded custom framing products, including wood and metal moulding, matboard, foamboard, glass, equipment and other framing supplies in the United States, Canada and 15 countries outside of North America. CTB International Corp. is a designer, manufacturer and marketer of systems used in the grain industry and in the production of poultry, hogs and eggs.

Lubrizol is a specialty chemical company that pro! duces and! supplies technologies for the global transportation, industrial and consumer markets. Lubrizol operates two business sectors: Lubrizol Additives, which includes engine, driveline and industrial additive products and Lubrizol Advanced Materials, which includes personal and home care, engineered polymer and performance coating products. FlightSafety International Inc.(FlightSafety) is engaged primarily in the business of providing high technology training to operators of aircraft. FlightSafety�� training activities include advanced training for pilots of business and commercial aircraft; aircrew training for military and other government personnel; aircraft maintenance technician training; flight attendant and aircraft dispatcher training, and ab-initio (primary) pilot training to qualify individuals for private and commercial pilots��licenses. FlightSafety also develops classroom instructional systems and materials for use in its training business and for sale to others.

NetJets Inc. (NJ) is a provider of fractional ownership programs for general aviation aircraft. TTI, Inc. (TTI) is a global specialty distributor of passive, interconnect, electromechanical and discrete components used by customers in the manufacturing and assembling of electronic products. Business Wire provides electronic dissemination of full-text news releases daily to the media, online services and databases and the global investment community in 150 countries and 45 languages. Berkshire�� retailing businesses principally consist of several independently managed home furnishings and jewelry operations. The home furnishings businesses are the Nebraska Furniture Mart (NFM), R.C. Willey Home Furnishings (R.C. Willey), Star Furniture Company (Star) and Jordan�� Furniture, Inc. (Jordan��). NFM, R.C. Willey, Star and Jordan�� each offer a wide selection of furniture, bedding and accessories. In addition, NFM and R.C. Willey sell a line of household appliances, electronics, computers and other home furnishings. N! FM, R.C. ! Willey, Star and Jordan�� also offer customer financing to complement their retail operations. An important feature of each of these businesses is their ability to control costs and to produce high business volume by offering value to their customers.

NFM operates its business from two retail complexes with almost one million square feet of retail space and sizable warehouse and administrative facilities in Omaha, Nebraska and Kansas City, Kansas. NFM is a furniture retailer in each of its markets. NFM also owns Homemakers Furniture located in Des Moines, Iowa, which has approximately 215,000 square feet of retail space. R.C. Willey, based in Salt Lake City, Utah, is a home furnishings retailer in the Intermountain West region of the United States. R.C. Willey operates 11 retail stores, two retail clearance facilities and three distribution centers. Borsheim Jewelry Company, Inc. (Borsheims) operates from a single store located in Omaha, Nebraska. Borsheims is a high volume retailer of jewelry, watches, crystal, china, stemware, flatware, gifts and collectibles. Helzberg�� Diamond Shops, Inc. (Helzberg), based in North Kansas City, Missouri, operates a chain of 233 retail jewelry stores in 37 states, which includes approximately 550,000 square feet of retail space. Most of Helzberg�� stores are located in malls, lifestyle centers or power strip centers, and all stores operate under the name Helzberg Diamonds. The Ben Bridge Corporation (Ben Bridge Jeweler), based in Seattle, Washington, operates a chain of 70 upscale retail jewelry stores located in 11 states that are primarily in the Western United States. Three of its locations are concept stores that sell only PANDORA jewelry.

Finance and Financial Products

Clayton Homes, Inc. (Clayton) is a vertically integrated manufactured housing company. At December 31, 2011, Clayton operated 33 manufacturing plants in 12 states. Clayton�� homes are marketed in 48 states through a network of 1,333 retailers, inclu! ding 333 ! Company-owned home centers. Financing is offered through its finance subsidiaries to purchasers of Clayton�� manufactured homes as well as those purchasing homes from selected independent retailers. XTRA Corporation (XTRA), headquartered in St. Louis, Missouri, is a transportation equipment lessor operating under the XTRA Leasebrand name. XTRA manages a diverse fleet of approximately 83,000 units located at 63 facilities throughout the United States and two facilities in Canada. The fleet includes over-the-road and storage traile

Advisors' Opinion:

• [By Tiernan Ray]

  Berkshire B shares ended the day at $117.82 and were up another 68 cents, or 0.6%, at $118.50, in late trading. The Class A stock (BRKA) closed at $176,500 and were up another $250.04 at $176,750 after hours.

• [By WALLSTCHEATSHEET.COM]

  Berkshire Hathaway is a well-regarded investment manager that has been led by Warren Buffett to great successes. The stock has risen consistently over the last several years and is now trading at all-time high prices. Earnings and revenue have shown steady growth, over the last four quarters, which has really pleased investors. Relative to its peers and sector, Berkshire Hathaway has been a year-to-date performance leader. Look for Berkshire Hathaway to OUTPERFORM.

Top 5 Insurance Companies To Invest In Right Now: Fairfax Financial Holdings Ltd (FRFHF)

Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited. Advisors' Opinion:

• [By Tim Brugger]

  Citing the letter of intent to be acquired�for $9 a share signed Monday with a consortium led by its largest shareholder, Fairfax Financial (NASDAQOTH: FRFHF  ) , BlackBerry� (NASDAQ: BBRY  ) �has opted to cancel its conference call and webcast following the 7 .a.m EST release of Q2 earnings this Friday, the company announced yesterday.