Saturday, September 13, 2014

5 Best Shipping Stocks To Own For 2014

In the following video, Motley Fool industrials analyst Blake Bos takes a look at the big spike in dry bulk shipping rates recently, up 40% since the beginning of June. Blake tells investors why this isn't as clear cut a story as many are hoping, and that a high dependence on the strong Chinese economy could mean that if there were a Chinese pullback, many of these companies are so debt-laden that they could be in serious trouble. He looks at one company in this space that could be a conservative and less-risky play, but continues to tell investors why this space, as a whole, is a bit too frightening for him at the moment.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.�Click here now�to keep reading.

Best Investments For 2015: Kingdee International Software Group Co Ltd (KGDEF)

Kingdee International Software Group Company Limited is an investment holding company. The principal activities of the Company and its subsidiaries are developing, manufacturing and selling of enterprise management software products and provision of software-related technical services in the People's Republic of China. The Company operates in two segments: enterprise management software business, which is engaged in the sales and implementation of enterprise management software, provision of other related services and sales of hardware related to enterprise management software arrangements, and others, which is engaged in the sales of middleware software business and provision online management services. Its subsidiaries include Beijng Kingdee System Technology Co., Ltd., Kingdee E-commerce Service (Shenzhen) Co., Ltd. and others. Advisors' Opinion:
  • [By WWW.MARKETWATCH.COM]

    HONG KONG (MarketWatch) -- Hong Kong stocks trimmed their gains but held to positive territory Wednesday after data showing China's economic growth accelerated to 7.5% in the second quarter, ticking up from a 7.4% gain in the first quarter. The Hang Seng Index (HK:HSI) inched up 0.2%, off slightly from a 0.3% advance ahead of the data, while the Shanghai Composite Index (CN:SHCOMP) dipped 0.1%. Mainland Chinese power companies posted broad gains, with Huadian Power International Corp. (HK:1071) rallying 4.2% after the company forecast its profit for the first six months of the year would jump 55% to 65% from a year earlier. Other stocks in the sector also attracted investors' interest, with Datang International Power Generation Co. (HK:0991) (DIPGF) (CN:601991) and Huaneng Power International Inc. (HK:0902) (HUNGF) (CN:600011) gaining 2.3% and 1.6%, respectively. Menswear maker China Fordoo Holdings Ltd. (HK:2399) rose 1% on its first day of trading. However, most software and gaming companies declined, with Kingdee International Software Group (HK:0268) (KGDEF) losing 1.4%, bigger rival Kingsoft Corp. (HK:3888) (KSFTF) falling 0.9%, and Forgame Holdings L

5 Best Shipping Stocks To Own For 2014: Banca Monte dei Paschi di Siena SpA (BMPS)

Banca Monte dei Paschi di Siena SpA is an Italy-based company engaged in the banking sector. It provides traditional banking services, asset management and private banking, including life insurance, pension funds and investment trusts. It operates though three business segments. The Retail Banking segment covers consumer lending, insurance, provision of financial and non-financial services to retail customers, wealth management, tax planning, financial advisory and planning for private customers. The Corporate Banking division oversees the Group's business strategies targeted to small and medium enterprises, institutions and large corporate for which it offers leasing, factoring, lending and financial products, among others. The Corporate Center segment includes the cancellation of intergroup entries, treasure, governance and support functions. In January 2014, the Company completed the sale of its entire shareholding in Sorin SpA, equal to approximately 5.7%. Advisors' Opinion:
  • [By Corinne Gretler]

    Kesko Oyj, Finland�� biggest publicly traded retailer, rallied 9 percent. Banca Monte dei Paschi di Siena SpA (BMPS) added 2 percent as Italy�� third-largest lender set out a plan to return to profit after cutting costs and raising capital as part of its restructuring plan. Speedy Hire Plc sank the most since 2009 after the construction-equipment leasing company said it found evidence of false accounting at one of its units.

5 Best Shipping Stocks To Own For 2014: First Commonwealth Financial Corporation(FCF)

First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, and IRA accounts. It also provides secured and unsecured installment loans, construction and mortgage loans, safe deposit facilities, credit lines with overdraft checking protection, and student loans, as well as Internet and telephone banking, and automated teller machine services. In addition, the company offers commercial banking services, including commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposi t, commercial cash management services, and repurchase agreements. Further, it provides various trust and asset management services, as well as a complement of auto, home, business, and term life insurance. Additionally, the company offers annuities, mutual funds, stock, and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. It operates 115 community banking offices in western Pennsylvania and 2 loan production offices in downtown Pittsburgh and State College, Pennsylvania. The company was founded in 1982 and is headquartered in Indiana, Pennsylvania.

Advisors' Opinion:
  • [By anina Egea]

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new products, make acquisitions, pay dividends and reduce debt.

  • [By Fede Zaldua]

    Eni (E) is an authentic cash cow for its shareholders. I believe the company will be able to sustain a greater than 6% cash dividend yield in 2014 even when the company's estimated 2015 free cash flow (FCF) yield is at just 4%. Asset sales as well as high oil prices should help the company meet its capex requirements and to continue giving back cash to shareholders through dividends. The recent sale of its stake in Sever Energia to the Novatek-GazpromNeft Joint Venture represents a clear hint into the company's strategy. After all, Eni's portfolio has several high quality disposal candidates which could attract the industry's interest – the first disposal candidate that comes to my mind is the remaining 8% stake Eni owns in Galp. The Italian oil and gas leader, which is held by Tom Gayner, sells for 12.5 times 2014 earnings and 5.5 times EV/EBITDAX.  

  • [By Ray Merola]

    Global recession notwithstanding, International Paper has re-imagined itself as a strong cash generator. I focus upon Free-Cash-Flow (FCF), thereby subtracting routine capital expenditures from Operating Cash. What remains is what Warren Buffett refers to as "Owner Earnings," or what is left over after a company has handled all aspects of running and maintaining its business.

  • [By Fede Zaldua]

    Overall, the company is trying to resist European volume trends while successfully putting in practice its pricing power. Even when market-trends flow against Imperial's top-line, the company should be able to grow its Free Cash Flow (FCF) per share once again in 2013 -its 2013 FCF yield should be as high as 9%. Some businesses are simple great. They deliver growing cash yields to its owners even when conditions are tough.

5 Best Shipping Stocks To Own For 2014: MPLX LP (MPLX)

MPLX LP, incorporated on March 27, 2012, is a fee-based limited partnership formed by Marathon Petroleum Corporation to own, operate, develop and acquire crude oil, refined product and other hydrocarbon-based product pipelines and other midstream assets. The Company�� assets consist of a 51% indirect interest in a network of common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States.

The Company generates revenue by charging tariffs for transporting crude oil, refined products and other hydrocarbon-based products through its pipelines and at its barge dock and fees for storing crude oil and products at its storage facilities. The Company is also the operator of additional crude oil and product pipelines owned by Marathon Petroleum Corporation and its subsidiaries (MPC) and third parties, for which it is paid operating fees.

The Company�� assets consist of a 51% partner interest in Pipe Line Holdings, an entity which owns a 100.0% interest in Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), which in turn own: a network of pipeline systems, which includes approximately 962 miles of common carrier crude oil pipelines and approximately 1,819 miles of common carrier product pipelines extending across nine states. This network includes approximately 153 miles of common carrier crude oil and product pipelines, which it operates under long-term leases with third parties; a barge dock located on the Mississippi River near Wood River, Illinois, and crude oil and product tank farms located in Patoka, Wood River and Martinsville, Illinois and Lebanon, Indiana; and a 100.0% interest in a butane cavern located in Neal, West Virginia, which serves MPC�� Catlettsburg, Kentucky refinery.

Crude Oil Pipeline Systems

The Company�� crude oil pipeline systems and related assets are positioned to support crude oil supply options for MPC�� Midwest refineries, whic! h receive imported and domestic crude oil through a range of sources. Imported and domestic crude oil is transported to supply hubs in Wood River and Patoka, Illinois from a range of regions, including Cushing, Oklahoma on the Ozark pipeline system; Western Canada, Wyoming and North Dakota on the Keystone, Platte, Mustang and Enbridge pipeline systems, and the Gulf Coast on the Capline crude oil pipeline system.

The Company�� Patoka to Lima crude system is comprised of approximately 76 miles of 20-inch pipeline extending from Patoka, Illinois to Martinsville, Illinois, and approximately 226 miles of 22-inch pipeline extending from Martinsville to Lima, Ohio. This system also includes associated breakout tankage. Crude oil delivered on this system to MPC�� tank farm in Lima can then be shipped to MPC�� Canton, Ohio refinery through MPC�� Lima to Canton pipeline, to MPC�� Detroit refinery through MPC�� undivided joint interest portion of the Maumee pipeline, and its Samaria to Detroit pipeline, or to other third-party refineries owned by BP, Husky Energy, and PBF Energy in Lima and Toledo, Ohio.

The Company�� Catlettsburg and Robinson crude system is consisted of the pipelines: Patoka to Robinson and Patoka to Catlettsburg. Its Patoka to Robinson pipeline consists of approximately 78 miles of 20-inch pipeline, which delivers crude oil from Patoka, Illinois to MPC�� Robinson, Illinois refinery. Its Patoka to Catlettsburg pipeline consists of approximately 140 miles of 20-inch pipeline extending from Patoka, Illinois to Owensboro, Kentucky, and approximately 266 miles of 24-inch pipeline extending from Owensboro to MPC�� Catlettsburg, Kentucky refinery. Crude oil can enter this pipeline at Patoka, and into the Owensboro to Catlettsburg portion of the pipelines at Lebanon Junction, Kentucky, from the third-party Mid-Valley system.

The Company�� Detroit crude system is consisted of Samaria to Detroit and Romulus to Detroit. Its Samaria to Detroit pi! peline co! nsists of approximately 44 miles of 16-inch pipeline that delivers crude oil from Samaria, Michigan to MPC�� Detroit, Michigan refinery. This pipeline includes a tank farm and crude oil truck offloading facility located at Samaria.

The Company�� Romulus to Detroit pipeline consists of approximately 17 miles of 16-inch pipeline extending from Romulus, Michigan to MPC�� Detroit, Michigan refinery. Its Wood River to Patoka crude system is consisted of two pipelines: Wood River to Patoka and Roxanna to Patoka. Its Wood River to Patoka pipeline consists of approximately 57 miles of 22-inch pipeline, which delivers crude oil received in Wood River, Illinois from the third-party Platte and Ozark pipeline systems to Patoka, Illinois.

The Company�� Roxanna to Patoka pipeline consists of approximately 58 miles of 12-inch pipeline, which transports crude oil received in Roxanna, Illinois from the Ozark pipeline system to its tank farm in Patoka, Illinois.

Product Pipeline Systems

The Company�� product pipeline systems are positioned to transport products from five of MPC�� refineries to MPC�� marketing operations, as well as those of third parties. These pipeline systems also supply feedstocks to MPC�� Midwest refineries. These product pipeline systems are integrated with MPC�� expansive network of refined product marketing terminals, which support MPC�� integrated midstream business.

The Company�� Gulf Coast product pipeline systems include Garyville products system and Texas City products system. The Company�� Garyville products system is consisted of approximately 70 miles of 20-inch pipeline, which delivers refined products from MPC�� Garyville, Louisiana refinery to either the Plantation Pipeline in Baton Rouge, Louisiana or the MPC Zachary breakout tank farm in Zachary, Louisiana, and approximately two miles of 36-inch pipeline that delivers refined products from the MPC tank farm to Colonial Pipeline in Zachary.

The Company�� Texas City products system is comprised of approximately 39 miles of 16-inch pipeline that delivers refined products from refineries owned by MPC, BP and Valero in Texas City, Texas to MPC�� Pasadena breakout tank farm and third-party terminals in Pasadena, Texas. The system also includes approximately three miles of 30- and 36-inch pipeline that delivers refined products from MPC�� Pasadena breakout tank farm to the third-party TEPPCO and Centennial pipeline systems.

The Company�� Midwest product pipeline systems include Ohio River Pipe Line (ORPL) products system, Robinson products system and Louisville Airport products system. The Company�� ORPL products system is consisted of Kenova to Columbus, Canton to East Sparta, East Sparta to Heath, East Sparta to Midland, Heath to Dayton, and Heath to Findlay.

The Company�� Kenova to Columbus pipeline consists of approximately 150 miles of 14-inch pipeline that delivers refined products from MPC�� Catlettsburg refinery to MPC�� Columbus, Ohio area terminals. Its Canton to East Sparta pipeline consists of two parallel pipelines, which connect MPC�� Canton, Ohio refinery with its East Sparta, Ohio breakout tankage and station. The first pipeline consists of approximately 8.5 miles of six-inch pipeline that delivers products (distillates) from Canton to East Sparta. The second pipeline consists of approximately 8.5 miles of six-inch bi-directional pipeline, which can deliver products (gasoline) from Canton to East Sparta or light petroleum-based feedstocks from East Sparta to Canton.

The Company�� East Sparta to Heath pipeline consists of approximately 81 miles of eight-inch pipeline that delivers products from its East Sparta, Ohio breakout tankage and station to MPC�� terminal in Heath, Ohio. The Company�� East Sparta to Midland pipeline consists of approximately 62 miles of eight-inch bi-directional pipeline, which can deliver products and light petroleum-based feedstocks betwe! en its br! eak-out tankage and station in East Sparta, Ohio and MPC�� terminal in Midland, Pennsylvania. MPC�� Midland terminal has a marketing load rack and is able to connect to other Pittsburgh, Pennsylvania-area terminals through a pipeline owned by Buckeye Pipe Line Company, L.P. and a river loading/unloading dock for products and petroleum feedstocks. This pipeline can also transport products to MPC�� terminals in Steubenville and Youngstown, Ohio through a connection at West Point, Ohio with a pipeline owned by MPC.

The Company�� Heath to Dayton pipeline consists of approximately 108 miles of six-inch pipeline, which delivers products from MPC�� terminals in Heath, Ohio and Columbus, Ohio to terminals owned by CITGO and Sunoco Logistics Partners, L.P. in Dayton, Ohio. This pipeline is bi-directional between Heath and Columbus for product deliveries. Its Heath to Findlay consists of approximately 100 miles of eight- and 10-inch pipeline, which delivers products from MPC�� terminal in Heath, Ohio to MPC�� pipeline break-out tankage and terminal in Findlay, Ohio. Robinson products system is consisted of Robinson to Lima, Robinson to Louisville, Robinson to Mt. Vernon, Wood River to Clermont, Dieterich to Martinsville and Wabash Pipeline System.

The Company�� Robinson to Lima pipeline consists of approximately 250 miles of 10-inch pipeline, which delivers products from MPC�� Robinson, Illinois refinery to MPC terminals in Indianapolis, Indiana, as well as to MPC terminals in Muncie, Indiana and Lima, Ohio. Its Robinson to Louisville pipeline consists of approximately 129 miles of 16-inch pipeline, which delivers products from MPC�� Robinson, Illinois refinery to two MPC and multiple third-party terminals in Louisville, Kentucky. In addition, these products can supply MPC and Valero terminals in Lexington, Kentucky through the Louisville to Lexington pipeline system owned by MPC and Valero.

The Company�� Robinson to Mt. Vernon pipeline consists of ap! proximate! ly 79 miles of 10-inch pipeline that delivers products from MPC�� Robinson, Illinois refinery to a MPC terminal located on the Ohio River in Mt. Vernon, Indiana. It leases this pipeline from a third party under a long-term lease. The Company�� Wood River to Clermont pipeline consists of approximately 153 miles of 10-inch pipeline extending from MPC�� terminal in Wood River, Illinois to Martinsville, Illinois, and approximately 156 miles of 10-inch pipeline extending from Martinsville, Illinois to Clermont, Indiana. This pipeline also includes approximately 9.5 miles of pipelines utilized for the local movement of products in and around Wood River, Illinois, and Clermont, Indiana.

The Company�� Dieterich to Martinsville pipeline consists of approximately 40 miles of 10-inch pipeline, which delivers products from the termination point of Centennial Pipeline to Martinsville, Illinois. From Martinsville, these products (including refinery feedstocks) can be distributed to MPC�� Robinson, Illinois refinery or to other destinations through our other pipeline systems. Its Wabash Pipeline System consists of three interconnected pipeline pipelines: approximately 130 miles of 12-inch pipeline extending from MPC�� terminal in Wood River, Illinois to Champaign, Illinois (the West leg); approximately 86 miles of 12-inch pipeline extending from MPC�� Robinson, Illinois refinery to Champaign (the East leg), and approximately 140 miles of 12- and 16-inch pipeline extending from the junction with the East and West legs in Champaign to MPC�� terminals in Griffith, Indiana and Hammond, Indiana. This pipeline system delivers products to MPC�� tanks at Martinsville, Champaign, Griffith and Hammond. This pipeline system also delivers products to tanks owned by Meier Oil Company at Ashkum, Illinois. The Wabash Pipeline System connects to other pipeline systems in the Chicago area through a portion of the system located beyond MPC�� Griffith terminal. The Company�� Louisville airport product! s system ! consists of approximately 14 miles of eight- and six-inch pipeline, which delivers jet fuel from MPC�� Louisville, Kentucky refined product terminals to customers at the Louisville International Airport.

Other Major Midstream Assets

The Company�� butane cavern is located in Neal, West Virginia, across the Big Sandy River from MPC�� Catlettsburg, Kentucky refinery. This storage cavern has approximately 1.0 million barrels of storage capacity and is connected to MPC�� Catlettsburg refinery. Rail access to the storage cavern is also available through connections with the refinery.

The Company�� barge dock is located on the Mississippi River in Wood River, Illinois and is used both for crude oil barge loading and products barge unloading. The barge dock is connected to its Wood River tank farm by approximately two miles of 14-inch pipeline, which transfers crude oil from the tank farm to the dock, and two 10-inch pipelines, which are each approximately two miles long and transfer products and feedstocks from the dock to the tank farm. This dock generates revenue through a FERC tariff, which is collected for the transfer and loading/unloading of crude oil and products. It also owns tank farms located in Patoka, Martinsville and Wood River, Illinois and Lebanon, Indiana, which it uses for storing both crude oil and products. These storage assets are integral to the operation of its pipeline systems in those areas.

Advisors' Opinion:
  • [By Robert Rapier]

    Refiners that have spun off midstream assets have done very well over the past years.�Valero Energy Partners�(NYSE: VLP) is up nearly 60 percent since its December IPO,�Phillips 66 Partners�(NYSE: PSXP) has more than doubled since its July IPO (and is the biggest gainer among MLPs year-to-date), and�MPLX�(NYSE: MPLX) — formed from�Marathon Petroleum�(NYSE: MPC) — is up 110 percent since its November 2012 IPO.

  • [By Robert Rapier]

    Two things PSXP has going for it are that it has no debt, and is likely to be able to grow future distributions. But there are other midstream MLPs that have little or no debt and are also in position to grow distributions, but with a higher yield than PSXP. Marathon Petroleum’s (NYSE: MPC) midstream affiliate MPLX (NYSE: MPLX) also has essentially no debt, but a slightly higher yield of 2.9 percent.

  • [By Dan Caplinger]

    In Marathon's quarterly report, watch for how the refiner's relationship with spun-off midstream pipeline operator MPLX (NYSE: MPLX  ) is faring. With Marathon holding a majority stake in MPLX, its pipeline assets will play an increasingly important role in bringing midcontinent energy products to its refineries.

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