Super Bowl ad sellout announced by Fox

The final gun has sounded for Super Bowl advertisers. Now, the real off-the-field action begins.

Fox has sold out all of its TV broadcast slots roughly two months before the Feb. 2 football championship in New Jersey, the company announced Wednesday. The sellout comes about one month earlier than did CBS's sellout announcement for the last Super Bowl.

"It's the worst kept secret," says Neil Mulcahy, executive vice president of Fox Sports. "The demand has been incredible. Having the game in the New York market this year meant a lot to people wanting to be there.

Fox also says the game will be live-streamed on an app for the first time -- allowing even wider access to the game.

While Fox won't say what it charged for the broadcast ad space, top media buyers estimate that some 30-second slots sold upwards of $4 million. That's $200,000 more than the average $3.8 million per slot that CBS took in for its 2013 broadcast.

In a still-wobbly economy, the early sell-out signals that advertisers not only like the New York market, but are still more than willing to invest big-time in an event that guarantees a mass audience – particularly an event that is so multi-media friendly.

"The Super Bowl is a unique TV event," says Jon Swallen, chief media research officer at Kantar Media, which monitors media ad placements. "With advertisers now routinely building integrated marketing campaigns around the Super Bowl spots, locking down commercial time early fits in with the longer lead times for planning these complex campaigns."

About a dozen major advertisers already have announced plans to return to the game, including Anheuser-Busch, Pepsi and Hyundai. General Motors, which was not in the 2013 contest but has been in past Super Bowls, has said it's returning to the 2014 game. Among the new advertisers are Intuit and Nestle's Butterfinger, which will promote a new peanut butter cup stuffed with Butterfinger.

Once again, auto advertisers will air long-form commercial! s, including two, two-minute commercials. Mulcahy declined to state who would air the two-minute spots, but Chrysler is expected to air at least one of them.

There will be fewer major motion picture advertisers in this Super Bowl, Mulcahy says. "That's the only category where there's anything less." He says he expects fewer major film releases are due-out in the spring.

But the Super Bowl may have faced some ad competition from the Winter Olympic Games, which begins just days after the Super Bowl. Subway, for example, which had two commercials in the most recent Super Bowl, says it's opting for the Olympics this go-round.

"The (Super Bowl) pricing this year was very, very aggressive," says Tony Pace, chief marketing officer at Subway. "The pricing has gone crazy." Also, Pace says, Subway prefers the Olympics because "shared family viewing doesn't happen much."

But Mulcahy strongly insists that the Olympics presented no competition and "did not impede our sales."

Announced Super Bowl Advertisers for 2014:

Anheuser-Busch InBev

Dannon

Doritos

General Motors (Chevrolet)

GoDaddy

Hyundai

Intuit

Jaguar

Mars

Nestle (Butterfinger)

Soda Stream

Wonderful Pistachios

Source: USA TODAY research

Next electric cars burn rubber, not just save gas

LOS ANGELES — Automakers focused on selling electric cars to the environmentally minded are now also setting their sights on new potential buyers: performance addicts.

They are rolling out new plug-in models that put the premium on breakneck acceleration and fun behind the wheel, not just relieving pain at the pump. At the same time, the new sleek models are certain to glamorize electric cars, which often come across as stodgy, utilitarian subcompacts meant for solo commuting or grocery runs.

At auto shows here and in Tokyo last month, Audi showed a new A3 that will come in a plug-in version; BMW and Porsche displayed production versions of their sexy electric sports cars; and Nissan offered a futuristic electric concept. All are following the path blazed by Tesla Motors, first with a plug-in sports car and lately with its performance electric sedan.

"Tesla proved to a lot of automakers that there is a market at the upper end for electric-drive vehicles" — with "exhilarating" driving characteristics, says John O'Dell, senior editor for "green" cars for Edmunds.com, a major auto-buying research site. "They can get almost scary. It's like driving a very fast car."

New performance plug-ins are coming from:

• BMW. The 2014 i8 plug-in hybrid sports car combines electric motors with the output of a 1.5-liter, three-cylinder turbocharged gas engine. It was just priced at $135,700 plus delivery fees and arrives in the spring.

• Audi. A plug-in hybrid version of the A3 Sportback, which has a 100-horsepower electric motor plus a gas engine, arrives in early 2015. No price yet.

• Porsche. The true supercar of the bunch, the plug-in hybrid 918 Spyder will come with a staggering 887 horsepower to rocket from zero to 60 miles per hour i! n less than 2.8 seconds, according to the automaker. When deliveries begin early next year, it will also come with a supercar price: $845,000.

• Nissan. The automaker that brought the plug-in all-electric Leaf to the U.S. showed off an unusual concept in Tokyo called the BladeGlider that's narrow in the front and wide in the rear. Nissan says it "embodies a fearless vision of the EV future," although it has not committed to producing it in its current form.

The hot-rod aspects of electric cars aren't lost on Detroit's Big Three.

General Motors customized an all-electric Chevrolet Spark EV for the big SEMA aftermarket parts industry trade show last month to include a performance mode. It sacrificed a little battery range to gain even quicker acceleration to demonstrate how enthusiasts can retune their own electrics for even more rubber-burning acceleration.

"It shows there is huge potential out there for electric vehicles," says Carl Smith, engineering group manager for Chevrolet performance parts. "It was a fun little vehicle to put on the track."

Massachusetts Regulator Finds Custody Infractions Among Switching Advisors

Of the 139 advisors that switched from federal to state registration in Massachusetts under the Dodd-Frank Act, only three had been examined by the Securities and Exchange Commission in the years before the law took effect, and the state has found custody infractions among the switching advisors it has examined.

So says a new report released by Massachusetts securities regulator William Galvin. The Massachusetts Securities Division so far has examined half of the Massachusetts-based advisors that switched.

The state says investment advisors’ custody of clients’ funds or securities has been a “common deficiency.”

To this end, Galvin released a policy statement Thursday to make clear that the investment advisors who register with the Division in the wake of the Dodd-Frank Act must follow the “stricter” state rules on reporting when they have custody of client funds.

“In many instances, advisors unknowingly possessed custody of clients’ trust assets due to the advisor or a related person’s position as a trustee of the trust,” according to the report. “Many of the advisors deemed by the Division to have custody failed to disclose that in their regulatory filing, nor have they had a surprise independent audit as required by state rules."

“With the recent Madoff scandal we have all seen the risks that can occur when an adviser abuses custody authority,” said Galvin, in a statement.

The policy statement sets out the Division’s custody requirements and specifically states that the Division does not follow the SEC exemption from custody for appointments of supervised persons of an advisor as executors, conservators or trustees that arise as a result of family or personal relationship with the decedent, beneficiary or grantor.

Advisors directly deducting advisory fees from client accounts are deemed to have custody unless they comply with certain additional requirements, the policy statement says.

The policy statement says that state-registered investment advisors “must comply with the custody rules as spelled out in the federal Investment Advisers Act of 1940, specifically Rule 206(4)-2 which requires, among other things, an annual surprise audit of advisors by an independent public accountant.”

While this will mean additional costs to registered investment advisors, the “cost is outweighed by the additional protections these measures afford to investors,” the Division said.

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Check out SEC: Don’t Use ‘Protected’ or ‘Guaranteed’ in Fund Names on ThinkAdvisor.

New retirement Income designation attracts thousands of advisers

One of the first blogs I ever wrote for InvestmentNews back in early 2012 discussed the need for a retirement income designation (http://www.investmentnews.com/article/20120210/BLOG05/120219990). As many of my readers know, I firmly believe that retirement income planning requires different skills and tools than those used in the accumulation phase.

Many financial advisers obviously agree given the numbers who are enrolling in retirement income designation programs.

The American College of Financial Services announced this week that its Retirement Income Certified Professional (RICP) designation is the fastest-growing financial adviser credential ever launched in the nonprofit college's 87 year history.

Since the RICP was launched a year ago, more than 3,000 licensed advisers and insurance agents have registered for the online program which includes three college-level courses and subsequent exams.

The RICP program includes textbooks for self-study, online lectures and video interviews with leaders in the retirement income planning field. The curriculum explores questions such as:

&bull:What is the best strategy for meeting a client's income needs in retirement?

&bull:What is the safe withdrawal rate from a portfolio?

&bull:How should portfolios be managed differently during the course of retirement?

&bull:How can clients maximize income in a low-interest-rate environment?

&bull:What is the most tax-efficient withdrawal strategy?

&bull:How can clients choose the best Social Security claiming strategy?

&bull:How do income annuities and employer-sponsored benefits fit into the mix?

“The main feedback we get from program participants is praise for the practical nature of the coursework,” RICP Program Director David Littell told me. “They can watch a video and use the information in their practice the next day.”

Advisers can learn more about the RICP program by visiting TheAmericanCollege.edu/RICP. Much of the video content is free to anyone at the site's New York Life Center for Retirement Income.

Although the RICP designation is the fastest growing credential in the retirement income field, it is certainly not the only one.

This summer, retirement income professor and researcher Wade Pfau shared his perspectives on the three leading retirement income designations in a guest post on Michael Kitces Nerd's Eye View blog.

Mr. Pfau created a side-by-side table comparing what he called ”the three most promising designations”, including : the International Foundation for Retirement Education's (InFRE) Certified Retirement Counselor (CRC); the Retirement Income Industry's Association's (RIIA) Retirement Income Management Analyst (RMA) and the ! American College's RICP.

The CRC is the oldest and most established with more than 1,800 current designee holders. The RICP is the newest and fastest growing designation, awarding its first 247 designations in 2013.The RMA certification, first awarded in 2010, has 74 designees so far.

“H

Ballmer gets less than ‘A’ grade in compensation

Microsoft CEO Steve Ballmer was awarded 79% of his target bonus for the company's latest fiscal year, with the software giant citing falling profits for its Windows division and sluggish sales of the Surface tablet.

The $550,000 award was detailed in a securities filing Thursday and is tiny compared with Ballmer's $11.3 billion fortune in Microsoft stock. But it reflects the Microsoft board's dissatisfaction at a key turning point in the company's 32-year history as it tries to become a devices and services company, moving beyond mostly software.

MORE: Ford's Mulally dispels Microsoft CEO rumors

Ballmer, 57, said in August that he'd step down within 12 months and Microsoft is searching for a new CEO.

Ballmer has long requested relatively low pay for the CEO of a major U.S. company, mainly because his wealth is already tied to Microsoft's fortunes. Including salary of $697,500, his total pay for the fiscal year that ended June 30 was valued at nearly $1.3 million, down 4% from the year before.

Over the year, Microsoft's adjusted revenue grew 4% to $77.3 billion but adjusted operating income fell 5% to $26.96 billion and earnings per share dropped 6% to $2.62. Earnings were hit by an 18% decline in operating income at its flagship Windows division, despite the launch of Windows 8 last October.

REPORT: Microsoft investors want Bill Gates out as chairman

Poor reception of the newest operating system, which attempts to bridge the gap between tablets and PCs, has been cited by some analysts for accelerating the decline of global PC sales. Later this month, Microsoft is releasing a free update called Windows 8.1 that aims to fix some of the problems users have complained about.

The company also launched its first self-made tablet computer, Surface, last October. In July, it booked a $900 million write-down on excess Surface inventory and slashed prices to stimulate demand. It updated the tablet with Surface 2 models last month.

It also said last month that! it would buy Nokia's mobile phone business for $7.2 billion, pushing it further into the hardware business. Nokia phones account for the vast majority of devices sold that use Microsoft's Windows Phone platform.

STOCK: Microsoft joins the buyback bandwagon

Microsoft's stock price rose 13% in the fiscal year to $34.54 on June 28 from $30.59 a year earlier as investors still valued its steadily profitable enterprise software business and Office suite of software. However, the stock price has been around that level since the early 2000s.

The company's profitable enterprise software businesses prompted a $2 billion investment in April by activist investment firm ValueAct Capital, which said Microsoft was undervalued even if one took a very pessimistic view of Windows' decline. In August, Microsoft agreed to give ValueAct a seat on its board starting with the first quarterly board meeting next year.

Compared to Ballmer, other top Microsoft executives were well rewarded, all receiving bonuses that were 100% or more than the target, with the exception of outgoing Chief Financial Officer Peter Klein who did not collect a bonus.

Chief Operating Officer Kevin Turner was awarded a total package valued at $10.4 million; new CFO Amy Hood's was $7.5 million; Server and Tools president Satya Nadella, now executive vice president of cloud and enterprise, received one worth $7.7 million; and Office division president Kurt DelBene, who's leaving at the end of the year, received compensation valued at $7.6 million.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in some cases from the total reported by companies to the Securities and E! xchange C! ommission.

The value that a company assigned to an executive's stock and option awards for 2013 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.

Fidelity target date funds pile on stocks

Fidelity Investments is increasing the stock allocation across its target date funds after research found that investors are OK with more risk in retirement accounts and the outlook for bonds dims.

The biggest reason for the change was new research Fidelity conducted on how 401(k) plan participants reacted to the stock market plunge in 2008, the worst decline since the Great Depression. The firm's research uncovered no discernible change in the 401(k) participation rate or in fund turnover across the 12 million participants in its record-keeping platform.

“We looked at investor behavior in 2008 and our conclusion was that people can tolerate a lot more equities than we thought in their retirement planning,” said Bruce Herring, group chief investment officer of the global asset allocation division within Fidelity.

The most change will be in Fidelity's longer-dated target date funds. Freedom Fund investors will now hold a 90% allocation to stocks until they are about 20 years away from their retirement date. Currently, they invest in less than 75% equities at the same point.

“To start de-risking 25 years before the retirement date is too conservative,” Mr. Herring said. “We've never had a drawdown that hasn't been fully recovered within 19 years.”

Near-term target date funds will also see a boost in equities. The Fidelity Freedom 2020 Fund (FFFDX) will increase its stock holdings to 61%, from 53%, and decrease its bond allocation to 39%, from 47%.

Fidelity's outlook for the bond market played a role in the increased stock holdings.

Fidelity's capital market assumption team looks at 20 years of historical returns and current valuations to forecast asset class returns. The team's outlook for stocks is largely in line with historical averages but with the today's interest rates, it's not expecting bonds to perform the way they have.

“We think it's unrealistic the next 20 years will have the same returns of the last 20 years,” Mr. Herring said.

The alterations to the glide path are the latest change to the Fidelity target date funds as the mutual fund giant fights to hold on to its top spot in the target date fund world.

Late last year, Fidelity added new funds managed by superstar stock managers Will Danoff and Joel Tillinghast to the target date funds' underlying holdings. They each manage around 7% of the domestic stock allocation.

Fidelity target date funds are the largest in the industry, with $170 billion in assets, but its biggest competitor is catching up quickly.

The Vanguard Group Inc.'s $124 billion target date fund lineup had organic growth of 21% in 2012, more than double the rate of the Fidelity target date funds, according to Morningstar Inc.

Combined, the two fund companies manage approximately 58% of all target date fund assets.

How to Prepare for "The Mother of All Bubbles"

From the Editor: No fewer than 165 stocks on the major exchanges hit new 52-week highs yesterday, which is all the more reason to take notes today... Shah's been identifying bubbles for decades, ever since his hedge fund days. And now that he uncovers them for individual investors, his readers know firsthand that "bubble watching" is more than a wealth protection strategy.

They made 218% the last time Shah prepared them. And they made 371% and 455% the time before that. Those bubbles were little, too, compared to this one...

There are lots of reasons to be fully invested in the stock market. And that's why it's so important right now to keep an eye on all the bubbles.

They're everywhere. And we have plenty of reasons to fear any number of them bursting.

So let's look at these bubbles now, while you still have time to prepare. And I'm not just talking "capital preservation" here...

You can make a killing when a bubble bursts, especially the one we'll start with today.

It's the biggest of the big bubbles. And it could start hissing at any moment.

The hissing will be loud, too...

"The Mother of All Bubbles"

It may not be classified as a bubble, but it is. We know what bubble-bursting effects it has because it burst in 2008 and shook the life out of global financial markets.

I'm talking about "interconnectedness."

Manifest and growing interconnectedness creates its own bubble. The bubble enlarges as masses of banks and financial institutions and private investors end up on the same side of the same bets. The bubble bursts when they want out, when they all head for the exit doors at the same time.

In 2008, the bubble, on the outside, stretched around mortgages, subprime and prime mortgages. But on the inside, the massively inflating mortgage bubble resulted from a desperate clamor by investors of all stripes. The hunt for yield took investors further and farther out on the risk spectrum.

Low interest rates were the conduits through which hot air filled the mortgage market balloon.

Why is that important now?

Because the same-as-before manipulation of interest rates by governments and central banks has forced investors into riskier and riskier assets in the hunt for yield across the global low-rate environment, again.

In order to maximize low-yielding investments in bonds, namely sovereign and corporate bonds, collectively far and away the largest asset class on the planet, investors leverage themselves by borrowing to increase exposure to magnify their returns. It is this debt surge that underlies the interconnectedness pumping up the interconnectedness bubble.

As long as interest rates are low and yield curves around the globe are fairly steep, which means short-term rates are a lot lower than long-term rates, the leverage that investors have employed in the form of short-term borrowings to pay for higher-yielding longer-term bonds will work in their favor.

But if short-term rates rise faster than long-term rates...

The "Hissing" Will Be Loud

It's bad enough if long-term rates rise, knocking down the price of existing bonds that offer lower yields, such that investors holding those long-term bonds have mark-to-market capital losses on their books. Investors, like banks, have to contend with reserve ratios, and losses on their portfolios will cause them to have to raise capital or deleverage. Still, they don't have to sell the bonds and actually take capital losses.

The Federal Reserve is the best example of this.

It is sitting on over $3 trillion in bonds and has an approximate loss on its portfolio of some $200 billion as rates have ticked higher. But it doesn't have to mark-to-market its portfolio (like banks do), and it doesn't have to sell its bonds, ever.

The hissing sound of the debt interconnectedness bubble deflating will start to be heard if short rates start to rise, and it will be heard loudly.

Mass panic could ensue if investors' cost of carrying their inventory of relatively low-yielding longer-term bonds rises.

Because most institutional investors and all banks borrow short term on a huge scale, if short-term interest rates they have to pay start rising and they keep having to rollover and borrow more when their short-term borrowings mature in days, weeks, and months, they will start losing the "spread" on the investment they bet on. If at the same time long-term rates move up (causing capital losses), then the "trade" becomes increasingly unprofitable, and to unwind positions, investors will sell their long inventory of bonds before their capital losses mount.

Selling, on a massive scale, would create a global panic as leveraged investors everywhere rush for the exit doors.

It's the global interconnected of the same debt bubble caused by low rates that worries central bankers and governments.

And rates are starting to rise.

But, so far, central banks have kept a lid on short rates. Long rates can rise, and although they are causing many problems already, a steady and measured rise in long rates can be absorbed by most economies without dire consequences.

However, if long rates jump precipitously or if short-term rates rise unexpectedly and central bankers can't keep a lid on them, look out!

What to Watch

Investors have to watch the yield curve and know at what rates the long end of the curve and the short end of the curve are rising, both in absolute terms and relative to each other.

Rising rates will cause massive problems, economic disruptions, and losses everywhere, in some places and on some assets more than others. We'll cover all of those scenarios in this series.

But as far as interconnectedness and the bubble brewing in global debt interconnectedness, investors can hedge their exposure to rising interest rates by buying inverse bond ETFs, by buying puts on debt-denominated ETFs, and by managing their own bond portfolios by deleveraging themselves and keeping portfolios short term in duration.

For investors seeking to profit from the debt interconnectedness bubble bursting, taking longer-term positions, meaning buying inverse ETF instruments and ETFs that will rise if bond prices fall, is much better than buying options, which if you don't get the timing right will expire and have to be continually rolled over.

But don't worry...

I'll be covering this situation for you right here in Money Morning. And I'll be suggesting specific positions you can take to either hedge yourself or play the bursting of these bubbles for pure profit.

Stay tuned...

Oil Forecast: The "Syrian Premium" Is Not Temporary

By an apparent agreement to place its chemical weapons under international control, Syria seems to have dodged an imminent American military attack.

Yet even as the world takes a step back from the brink, three critical questions still remain:

Will Syrian President Bashar Assad hand over all of his chemical weapons? Will the proposed international control mechanisms satisfy Washington? Will the final result contained in the U.N. report on the chemical weapons use outside of Damascus alter the outcome?

Of course, until the latest news hit, one result had seemed certain: The global oil market was bracing for higher prices. West Texas Intermediate (WTI) closed at a 28-month high on Friday, while Brent crossed the $116 a barrel level.

Following the agreement, that trend has reversed, sending oil prices in both New York and London lower.

But has this crisis really been defused?

Just look at oil prices, and where they're undoubtedly headed...

Calculating the "Syrian Premium"

The developing tensions have added a "Syrian Premium" to the price of oil. By my best estimate, this "crisis premium" was $4 a barrel in New York and $8 in London.

In other words, absent this premium, WTI should trade at about $103 a barrel, while Brent should trade near $107.

As of Tuesday, that premium stands at $4 in London and $3 in New York, down 50% and 30% respectively off of Friday's close.

Given Syria's place in the energy markets, that is the most direct way the crisis has impacted the energy sector.

But it is hardly the only effect.

The truth is the market has no genuine way to determine the degree of volatility resulting from what is an unknown level of instability.

Needless to say, that is usually a formula for an increase in price beyond what the market fundamentals would sustain.

How long the spike remains depends on the level of uncertainty. At the moment there are more questions than answers.

And despite this morning's news, that uncertainty is not likely to be receding anytime soon.

That is because, absent a "palace coup" to unseat Assad in Damascus, nothing was likely to happen this week to reduce the tension. Congress is back in session, but the Obama Administration is still faced with a very close vote on obtaining a Congressional approval for any strike. The specter of Iraq still weighs heavily on both sides of the aisle.

It is the same case in London, where Parliament has made it clear it will not agree to support a missile strike until the U.N. team reports findings that chemical weapons were used. That may well not take place until the end of the month, although there are likely to be leaks of the main points beforehand.

France and Saudi Arabia may have already declared support for military action, but there has been no approval for any other EU or Gulf Coordination Council member state.

Meanwhile, Moscow is pledging ongoing support for Assad (while also leaving the door open to apply U.N. Security Council-sponsored pressure against the Syrians should the U.N. report justify such a move).

In short, before the news, this week had been shaping up as one of accelerating rhetoric from the White House, considerable lobbying on both sides of the issue, and a continuing impasse.

What's Our "Goodbye Code?"

Of course, President Obama could authorize a strike without the permission of Congress. But the domestic political environment in the U.S. would not support that decision.

There are clear misgivings emerging these days over the proper American position in what is a civil conflict in Syria and little support for another open-ended military excursion into the region.

That seems to be the gravamen in all of this political maneuvering and rancor. It also reminds me of a basic rule in my earlier career.

You see, in the intelligence business, you always wanted to have what we called a "goodbye code."

A "goodbye code" was the way you intended to get out of whatever situation the higher pay grades were about to put you into. It was a basic element of strategy and the primary foundation for whatever tactics we introduced to meet our objectives.

Recent American excursions - Viet Nam, Iraq, and Afghanistan - have been light on this front. What is the objective? How do we limit our involvement to meet that end? And, most importantly, how do we prevent "mission creep?"

This is what happens when what is set up to reach an objective ends up having a life of its own. It expands into something more than initially contemplated. Means become an end in themselves, clouding the goals and the ability to wind down involvement.

Nobody in Washington wants another "boots on the ground" deployment, or a multi-year commitment to overthrowing another two-bit dictator.

For their part, the wide majority of the U.S. population needs something in addition to the acceptance that Assad is a nasty fellow. No argument there.

But what is the specific American objective, and what is our "goodbye code?"

To date, the administration has not been forthcoming here. A strike means we would be injecting U.S. power into a civil war in what is already a regional pressure cooker, a move that would certainly change the dynamics for all of the countries bordering Syria and the integrity of crude oil export routes.

No Quick Answers Here

That brings us back full circle to how this will play out for energy investors.

The truth is there will be no quick answer to anything in Syria. The talking heads will continue their banter on TV (I gave my views yesterday on Fox Business). However, there will be no resolution of the instability.

And that means oil prices will continue to rise.

It is too early to make any meaningful forecasts about how this will impact the economy as a whole. What we do know is this: There will be an observable negative pressure on economic recovery should those prices rise too quickly.

My guess this morning is that a level of $120 a barrel in New York would probably result in a market pullback, although hardly a move into another recession.

Still, hedge funds are already placing bets on higher gold prices in anticipation of higher oil levels. This is merely a result of something I identified here in Oil & Energy Investor several months ago about how oil is becoming the new "gold standard."

Oil is now playing the tune that gold dances to, with the rest of the market following closely behind.

At least until Tuesday...

Until the specifics are in, however, the proof this situation has been defused is in the details.

And those may now be set, at least initially, not in Washington or Damascus but in Moscow.

Next: Here's How to Play the "Syrian Premium"

Rainbow Coral Corp. Praises Partner TheraKine’s Fundraising Results in $60B Drug Delivery Market (OTCBB:RBCC, ASX:TEX)

Rainbow Coral Corp. (RBCC)

Today, RBCC has shed (-11.76%) down -0.034 at $.255 with 18,300 shares in play thus far (ref. google finance Delayed: 11:33AM EDT July 10, 2013), but don't let this get you down.

Rainbow Coral Corp. previously praised the fundraising results achieved by joint venture partner TheraKine, Ltd., as both companies work together to solve the problems posed by systemic drug delivery.

"TheraKine has done a tremendous job of bringing in outside funds to help push its innovations further into a hungry marketplace," said RBCC CEO Patrick Brown. "The interest in TheraKine's new drug delivery solutions is a fantastic illustration of this new system's incredible market potential."

Rainbow Coral Corp. (RBCC) 5 day chart:

Target Energy Limited (TEXQY) (TEX)

Target Energy Limited (OTCQX:TEXQY, ASX:TEX) (http://targetenergy.com.au/) is an oil and gas exploration and production company listed on the Australian Securities Exchange and trading under ticker “TEX” and OTC Markets trading under ticker “TEXQY”.

Today (July 10), Target Energy Limited ticker (OTCQX:TEXQY) had remained (0.00%) +0.000 at $6.48 thus far (ref. google finance 12:34PM EDT July 10, 2013), and Target Energy Limited on the Australian Securities Exchange ticker (ASX:TEX) had surged (+9.68%) +0.006 at $.068 with 106,557 shares in play at the close (ref. google finance July 10, 2013 – Close).

Target Energy Limited previously reported that the company is continuing drilling operations at the Pine Pasture #3 oil well on their East Chalkey Oil Field in Parish, Louisiana. The Company had independent studies which indicated that put upside recoverable reserves for Pine Pasture #3 range between 250,000 and 450,000 barrels of oil. In addition, the report also revealed that the East Chalkey Field has an upside estimate of 4 million barrels of oil.

To view Target Energy Limited video click link http://crwetube.com/media/target-energy-ltds-managing-director-laurence-roe .

Keep in mind, Target Energy Limited production increased by +320% in 2013 following successful Permian Basin drilling campaign. In April, the Company was generating in excess of $400,000 per month in net sales revenue. The Company's ongoing 2013 drilling programs in Permian Basin and Louisiana are likely to add significantly to their production and reserves.

Target Energy Limited (ASX:TEX) 5 day chart:

Want to invest for the short term? Check out top strategies

There was a research conducted in United States on the average number of days investors hold the stock. The number was 187 (about 6 months) in 1991-1996 period. The median was worse with just 90 days. With internet boom era and overpriced IPOs in 2000s, this came down to about 3 months. There is no data available for Indian market but looking at the volatility of our stock market, the numbers will be very close or even less. 

This tells us there are mostly short term traders in the market. Is there anything wrong with short term trading? Absolutely not, but investors should know the rules of the game before they trade short term. Apart from knowing the rules, investors should also understand that short term trading mostly relies on luck and on study, which at best can be termed speculative.

In the current volatile market scenario, you could be tempted to try your luck in some short term investment strategies to make the best out of a bad situation. Here is an understanding of some short term trading strategies usually followed by short term traders. Knowing these strategies will make you aware of your own actions. However, do proceed with caution.

Day-trade in stocks

In this trading style, traders buy and sell the stocks on the same day or in a very short period of time. The traders take advantage of daily market volatility to profit. They buy when the stock prices go down hoping the prices to appreciate in the day. They square-off by the end of the day. This can result in profit or loss depending on whether the price they sold at was higher or lower than their buy price. This is a very popular way to trade. The popularity stems from the fact that this looks exciting. Even if traders lose money, the loss doesn�t seem big as daily variation is not very volatile.

Day-trading, however, is the most popular way to lose money. Majority of day-traders either lose money or do not make better than a long term investor. Investors look at daily loss and assume that this is not a big loss but accumulate the losses for the year and they can see the big picture.

For example. If I have 1 lakh and I gamble, I will be happy to earn Rs 2000 from my gamble. However, I will not be too worried if I lose Rs 2000. This psychology works against traders. The happiness to get marginal profit is more than the sorrow of suffering a marginal loss. Take another example. A buyer goes to a showroom and to buy a car worth 3 lakh. At the last moment, he comes to know that the seller is giving Rs 6000 coupon free to be spent in lifestyle. At the same time, another buyer goes to another shop and buys the car at 2 lakh and 94000 rupees. Both come out of the shop. Whom do you think will have bigger smile?

Risk mitigation

Investors should not put all their money in day-trading. If you are too excited by daily price volatility and want to try your hands in day-trading, put at most 10% of your total investment for this and play with this. Do not gamble more.

Trading on margin

In margin trading, the investor spends some part from his or her pocket and borrows the rest from the broker at an interest. In this context, investors have to understand the concept of initial and maintenance margin. Initial margin is the % of total investment that investors have to put. When the prices go down, your contribution in terms of percentage will go down. After it goes below a certain percentage, the broker will ask you to put more money to take it to the initial margin. This �certain percentage� is called maintenance margin.
Take an example.

Let�s say an investor, Rakesh buys 100 stock of Airtel at Rs 400 a share. The initial margin is 25% and maintenance margin is 10%. This means Rakesh has to put 10,000 (25% of total investment of 40,000). The rest 30,000 is borrowed by broker. Suppose the prices start going down and goes to Rs 330 a share. In this case, the total value is 330*100 = Rs 33,000. Let�s calculate what the contribution by investor at this point is. The investor contribution is (33000-30000)/33000. This is less than 10%. Hence investor will get a call to put more money so that his or her contribution is 25% of Rs 33000 which is Rs 8250. Since his amount is 3000, he will have to deposit another 5250.

This is high risk high return strategy. The advantage is that if the prices go up, you earn all the profit minus the interest you pay to the broker on his contribution. However, the loss is equally yours because the broker will anyway charge the interest. This is a double whammy.

Risk Mitigation

The only risk mitigation strategy is that the investors should never put more money when margin call is given by the broker. The investor, instead, should ask the broker to square off the position with whatever loss has happened. Avoid the temptation to put more money after the margin call.

Selling short

In this short term strategy, investors borrow and sell the shares and later they have to buy this from open market and give it back to the lender. The idea is to benefit from decreasing prices. Investors short-sell stocks because they assume that prices will go down and when it goes down they buy it cheaper and give it back. The difference is the profit to investors.

For example. An investor Rakesh expects the price of Airtel with current market price @400 to go down. Since he has no stocks, he borrows 100 Airtel stocks from the market and sells it immediately earning 40,000. After sometime, as he expected, the Airtel price went down to 350. He buys 100 stocks back at 35,000 and gives it back. He earns Rs 5000 from this transaction. We are ignoring transaction costs and other charges for the sake of simplicity.

Risk mitigation

Short-selling is speculative in nature and investors may lose if the prices go up. There is no guarantee that stocks will go down as expected. There are other ways to mitigate the risk by using derivatives but those are out of scope of this article. If you are keen on doing it, use a very small amount (less than 10% of your investment) for short-selling.

Short term is tempting to investors. Short term trading offers excitement, action, and instant gratification. Compared to this, long term is boring, tedious, and requires extreme patience. However, there is no way to build wealth but by using long term strategies.

This is true for most of the investors. There are short term investors who have done tremendously well but they are few and far between. Hence investors should put their major portion of investment corpus for long term wealth building assets and segregate a minor portion for short term speculation.

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WebMD Surges On Earnings Surge--Buy Or Sell?

Health information provider WebMD (Nasdaq:WBMD) announced second quarter earnings July 12 that included a surprise profit instead of a loss. Its stock jumped 27% on the news. If you currently own its stock, should you be selling? If you don't, should you be buying? I'll answer these two questions below.

Why The Jump?
You don't get eight times the usual average daily volume without a real catalyst of some sort. WebMD's jolt came as a result of a 5-cent profit in Q2 compared to an 11-cent loss in the same quarter a year earlier. Probably even more surprising was the fact analysts expected it to deliver a break-even quarter. Revenues are expected to come in around $124 million, a 10% increase year-over-year and $7 million higher than analyst expectations. In addition, it upped its full-year guidance for revenue to between $485 million and $505 million, its best yearly increase since 2010.

It's official. WebMD's stock has more than doubled year-to-date, up 138% through July 12. In comparison, the PowerShares NASDAQ Internet Portfolio (Nasdaq:PNQI) has gained 25% so far in 2013. WebMD was hot before its latest announcement which is good news for long time shareholders like Kensico Capital, which first made a $92 million investment in WebMD's predecessor company, HLTH Corporation, in Q2 2007. Today, Kensico owns approximately 5.69 million shares in WebMd, making the health information site the hedge fund's eighth largest holding out of a total of 36.

If You Own
Shareholders got 0.444 shares in WebMD for every share of HLTH Corp. Kensico Capital held 4.16 million shares in WebMD once the merger was completed on October 23, 2009. WebMD's share price is flat from the merger date through July 12's big move. How much they actually paid for those shares is a bit tricky to calculate because they've done a considerable amount of trading in and out of the position before and after the merger. An educated guess--they were bought for less than $34. Since the merger, Kensico's picked up an additional 1.53 million shares. Again, that's with a lot of trading in and out of WebMD's shares.

SEE: Friday's ETF Chart To Watch: XLY Rally In Focus

So let's assume that the average long-term investor bought just after the merger for $34 per share. Only now are they getting back to break-even. Should he or she ride the momentum of 2013? Or should they call it a day having recouped their initial investment? Four years is a long time to sit on an investment without any kind of return. Warren Buffett types might be able to hang in their but when you consider that its stock was as high as $58.55 only 18 months after the merger, it's really difficult to accept that you could have sold two years ago when you had the chance and didn't.

WebMD's business went off a cliff in the first six months of 2012 as its pharmaceutical customers held back its spending. In January 2012, former CEO Wayne Gattinella resigned just as the company projected its 2012 revenue would be as much as 8% lower than in 2011. It turns out that was a conservative estimate as revenues declined 16% year-over-year to $470 million with an operating loss of $25 million, $135 million worse than in 2011. At the end of May 2012, WebMD hired Pfizer (NYSE:PFE) executive Cavan Redmond to right the ship. In his first conference call in July of that year, Redmond indicated that the company's cost structure was out of whack given the patent expiration troubles many of its clients were facing. One year later it appears that revenues are growing again and more importantly, it's once again making money. In hindsight, Redmond clearly was a temporary hire (resigned May 7) meant to calm investors and influence Big Pharma into spending once again. On both fronts it appears to have worked.

If you already own its stock I think you have to see how this plays out. With the economy improving, advertising spend increasing and big product introductions by the pharmaceutical companies ramping up, all the signs point to a good future. I'd hang in there.

Should You Buy
Absolutely! If everything plays out as I've described in the previous paragraph, its all-time high of $58.55 isn't too far off. In the past rumors have cropped up that someone like Google (Nasdaq:GOOG) or Yahoo (Nasdaq:YHOO) would buy it. While that's unlikely, two or three more quarters with solid numbers and someone will step up--and not at $34.

If you've got some speculative dough, I'd seriously consider making a bet. However, be prepared for extreme volatility. A stock going up 25% in one day can also come down 25%. But other than that, you'll be fine.

Can Toyota Cruise to Higher Prices?

Toyota has faced a challenging environment in the last few years. The devastating tsunami that hit the Japanese coast in 2011, low automotive demand, and recently unfavorable exchange rates have all stifled revenues and earnings for the Japanese automaker. However, the stock has advanced almost 35 percent since the beginning of the year. Can Toyota carry this momentum into the second half of the year? Let's use our CHEAT SHEET investing framework to decide whether Toyota is an OUTPERFORM, WAIT AND SEE OR STAY AWAY.

C = Catalysts for the Stock's Movement

Toyota's bottom-line is extremely sensitive to fluctuations in the yen — every 1 yen change against the dollar affects Toyota's profitability by an astounding $353.4 million. A weaker yen benefits Toyota's sales, as around 75 percent of its cars go to overseas consumers.

Shinzo Abe has been somewhat of a savior to Toyota since his election last year. His aggressive stimulus plan has helped depreciate the yen by more than 20 percent against the dollar, leading to a 113.5 percent increase in first quarter earnings from the previous year's quarter.

In the chart below you can see the strong correlation between Toyota's rising share price and the depreciation of the yen. While the stock's strong performance can also be attributed to other factors — such as rebounding auto demand — there certainly seems to be a pattern between movements in Toyota's share price and the yen.

Favorable exchange rates aren't the only factor helping Toyota's earnings. Aggregate demand for vehicles has picked back up since the financial crisis. June auto sales increased 6.3 percent from last year, and were the strongest they have been since December 2007. Additionally, auto sales in China increase more than 10 percent last month. Toyota saw sales to its neighbor pick back up, following a temporary lull in sales caused by strained political relations between the two countries. Additionally, domestic sales in the U.S. are expected to grow at around 7 percent for the rest of the year. This is good news for Toyota as it heads into second quarter earnings.

E = Earnings are Increasing Year-over-Year

Toyota's earnings have increased over the last 5 quarters. The most recent quarterly figure was $2.05, beating analysts' estimates and showing substantial growth from the previous year's same quarter earnings of $0.96. Toyota's revenue declined around 11 percent in the first quarter — weak sales in China amidst political strife are still hurting revenues, but Toyota believes sales will improve there. Earnings have not been affected as much, with the company continuing to benefit from a depreciating yen. Toyota anticipates that net income will grow by 42 percent to $14 billion this year.

	2013 Q1	2012 Q4	2012 Q3	2012 Q2	2012 Q1
Qtrly. EPS	$2.04	$0.73	$2.10	$2.31	$0.96
EPS Growth YoY	113.5%	9.74%	213.1%	25230.0%	387.0%
Revenue Growth YoY	-10.59%	-1.86%	16.55%	63.44%	23.05%

E = Excellent Relative Performance to Peers

Toyota’s chief competitors are Ford (NYSE:F), GM (NYSE:GM), and Honda (NYSE:HMC). While Toyota isn't cheaply priced, and doesn't offer an attractive dividend like its American counterparts, investors are really paying for the company's high future growth prospects. Toyota's PEG ratio — the ratio of the P/E to the expected future earnings growth rate of the company — is the most attractive among the group. Lower PEG ratios tend to suggest that a stock is undervalued, if it performs in line with its future earnings growth. While these future earnings are only estimates, Toyota's low PEG ratio and high 2013 growth estimate are certainly bullish indicators.

	TM	F	GM	HMC
Trailing P/E	16.75	11.51	12.39	14.86
PEG Ratio	0.52	1.01	0.71	0.88
Growth Est. (2013)	19.3%	0.7%	1.5%	19.6%
ROE	9.09%	33.97%	15.2%	8.08%

T = Technicals on the Stock Chart are Strong

Toyota is currently trading at $129.29, well above both its 200-day moving average of $109.01, and its 50-day moving average of $120.68. The company has experienced a strong uptrend in the last year — up 70 percent in the last 12 months. Toyota is trading right around its 52-week high of $130.99 it achieved in late-May. Toyota’s relative strength index is flirting with 80, implying the stock may be overbought in the current, short-term period.

Conclusion

Toyota looks like it has put its worst days behind it, as Japan has largely recovered from the 2011 tsunami disaster, and the yen is at a more attractive rate for exporters. It looks like the weak yen is here to stay: Prime Minister Abe shows no sign of scaling back 'Abenomics,' and the U.S. dollar should appreciate as the domestic economy continues to strengthen. Additionally, increased global aggregate lightweight vehicle demand, as well as improved relations between China and Japan, should increase Toyota's sales in the coming quarters. Even though Toyota trades at a relatively high price, its future earnings growth is very attractive. Look for Toyota to OUTPERFORM.

Charting Albemarle's Latest Earnings Release

Albemarle (NYSE: ALB  ) reported earnings on July 17. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share increased significantly.

Gross margins shrank, operating margins dropped, net margins expanded.

Revenue details
Albemarle recorded revenue of $634.2 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $653.5 million on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $684.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.97. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.98 per share. Non-GAAP EPS of $0.97 for Q2 were 22% lower than the prior-year quarter's $1.24 per share. GAAP EPS of $0.98 for Q2 were 133% higher than the prior-year quarter's $0.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.0%, 440 basis points worse than the prior-year quarter. Operating margin was 17.7%, 380 basis points worse than the prior-year quarter. Net margin was 13.0%, 750 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $704.8 million. On the bottom line, the average EPS estimate is $1.36.

Next year's average estimate for revenue is $2.73 billion. The average EPS estimate is $4.68.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 220 members out of 235 rating the stock outperform, and 15 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Albemarle a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Albemarle is hold, with an average price target of $67.50.

Looking for alternatives to Albemarle? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Add Albemarle to My Watchlist.

What It Takes to Make a Fortune in Hollywood

Have you ever wondered what it takes to really make a fortune in Hollywood? You can get a pretty good idea of this from an article in the June issue of The Hollywood Reporter.

April and May saw a flurry of big-budget blockbusters from almost all of the major studios. The Reporter tapped some insider sources to get a fresh handle on the production and marketing costs for each one, and then sat down to do the math. The following chart will help you visualize the discussion.

 

Walt Disney (NYSE: DIS  ) takes the cake with Iron Man 3's estimated global box office of $1.2 billion. The Marvel purchase is starting to look savvy these days, don't you think?

The Robert Downey Jr. movie spent the most on production and marketing, and it also led the league in terms of profit-sharing arrangements. But it's all worth it: A solid $400 million drops all the way down to the final profit line. That's more than the other four titles put together, on just 62% of the rivals' combined revenues. Economies of scale really pay off here. Iron Man scores the highest profit margin in this comparison at a solid 33%.

The muscle cars of Universal's Fast & Furious 6 aren't far behind, though. The sixth car-chase extravaganza in the series is set to deliver 27% of its box office take straight to studio owner Comcast's (NASDAQ: CMCSA  ) operating income. That's in spite of the second-thickest slice of profit-sharing deals with superstars like Vin Diesel and The Rock. Seems like you often get what you pay for in Hollywood. Big names pull in large audiences. In a business where nearly 100 cents out of every extra revenue dollar turns into operating profit, that's a pretty nice deal.

For another example of this, check out Time Warner's (NYSE: TWX  ) Hangover franchise. The first installment was a surprise hit, but the actors have blossomed into bankable stars by now. A sequel without Ed Helms or Zach Galifianakis would lose its marquee luster very quickly. Keep the production and marketing costs equal, reduce the star bait fees by half, and drop the ticket take to $200 million. You'd end up with a $100 million loss. The Hangover series has allegedly run its course -- if not for running out of raunchy jokes, it might be because the studio can't afford to pay the stars what they'd demand for a fourth installment.

The smallest profit-sharing budgets here also end up with the highest straight-up production costs per box office dollar. Viacom's (NASDAQ: VIAB  ) Star Trek crew is largely made up of relatively fresh faces, hoping to take a star turn after this marketing blitz. Warner's The Great Gatsby hangs its hat on the fading star of Leo DiCaprio, who isn't the ticket seller he once was.

Gatsby's $25 million profit contribution would be a rounding error in Warner's $1.2 billion of annual operating income. Viacom runs a smaller ship with just $325 million of reported EBIT income last year, so Spock's efforts will be appreciated. But in the context of Viacom's $3.9 billion of cable network profits, the entire Paramount venture seems like an afterthought.

The combined production and marketing budgets for these silver screen hits range from $253 million to $375 million, which is a fairly tight range. But the varied franchise brand values and star power quotients make a big difference to ticket sales. Disney and Comcast can laugh about it all the way to the bank while writing the huge paychecks they owe to Vin Diesel and Iron Man himself.

It's easy to forget that Walt Disney is more than just the House of Mouse. True, Disney amusement parks around the world hosted more than 121 million guests in 2011. But from its vast catalog of characters to its monster collection of media networks, much of Disney's allure for investors lies in its diversity, and The Motley Fool's premium research report lays out the case for investing in Disney today. This report includes the key items investors must watch as well as the opportunities and threats the company faces going forward. So don't miss out -- simply click here now to claim your copy today.

Investment News Flash: California Teen Invents Super-Battery

Don't look now, but electric cars just became viable.

And I don't mean just Tesla Motor's (NASDAQ: TSLA  ) $100,000-plus electric-powered supercar, either -- the ones that can go 300 miles on a single charge, while Nissan's LEAF and Ford's (NYSE: F  ) electric Focus sputter to a halt around the 100-mile mark. In fact, today's investment news out of Arizona appears to have implications for everyone who's making electric-powered passenger cars today -- and even a few folks who aren't.

The investment news in a nutshell
On Monday, the announcement went out: Over in Arizona, 18-year-old high school student Esha Khare of Saratoga, Calif., just made history by inventing a new super-battery that can:

Hold more electric power than an ordinary battery Hold this power longer without going "dead" Change its shape to accommodate battery designs other than your basic "rectangular solid" Endure 10,000 recharge cycles -- 10 times more than your average rechargeable battery can And best of all -- charge fully in as little as 20 seconds

Impressed yet? You should be. For the time being, all Khare has powered with her revolutionary "supercapacitor" is a single light-emitting diode. Pretty small potatoes, to be sure. But considering that this young lady was working under a high school student's budget, it's still quite an accomplishment, and it's easy to see how a truly flush multinational corporation could scale up her gizmo in a jiffy. A company like...

Intel (NASDAQ: INTC  )
Intel, which sponsored the International Science and Engineering Fair, and awarded Khare her $50,000 prize, has been trying to break into the mobile computing market for some time now. The fact that most investment news stories on Khare's invention are focusing on the "time to recharge a cell phone" angle suggests this is the first tech improvement we should look at. If Intel is able to secure rights to develop and scale up Khare's invention, it could simply dominate the market for electricity-hungry cell phones, tablets, and notebook PCs.

Google (NASDAQ: GOOG  )
Google actually has phones, tablets, and laptops in production, and is clearly going to be interested in commercializing Khare's invention. In fact, according to press reports, Google's reached out to Khare already.

AeroVironment (NASDAQ: AVAV  )
Shifting over the implications of this news for automotive investments, the key attraction for AeroVironment investors (aside from selling UAVs into an Afghan war that's winding down) has been the company's "PosiCharge" electric-car battery recharging technology. AV says it beats all comers with the ability to recharge a lithium ion battery pack in mere minutes. But if Khare's invention bears fruit, and battery recharge times begin getting measured in seconds, AV's raison d' etre could vanish.

Tesla
Tesla's also in a very interesting place -- ideally placed among automakers, you might say, to profit from this investment news. It's the only car company currently powering its vehicles with an array of (many, many) cell phone batteries. As such, it's probably closer in scale already to what Khare's device will be able to accomplish, than are rivals like Ford and Nissan, whose electric cars are powered by fewer, larger car batteries.

On the other hand, this week's investment news also holds peril for Tesla. One of the company's key advantages in the electric-car market -- and one reason it's been able to charge upwards of $100,000 for its electro-buggies, while its rivals tend to circle the $40,000 price point and below -- is the fact that Tesla's battery design permits its cars to drive as far as 300 miles without recharging.

In a world where recharging a car battery was a 12-hour-long proposition, that gave Tesla a decided advantage. Factor in today's investment news, though, and the possibility of recharging an electric car's battery in less time than it takes to fill up the tank on an ordinary car... just might have taken away Tesla's biggest selling point.

Tesla's plan to disrupt the global auto business has yielded spectacular results. But giant competitors are already moving to disrupt Tesla. Will the company be able to fend them off? The Motley Fool answers this question and more in our most in-depth Tesla research available. Get instant access by clicking here now.

I'm Sorry -- Now Boost My Sales

Department-store chain J.C. Penney (NYSE: JCP  ) recently launched a mea culpa advertising campaign, asking customers to give it another shot after royally screwing up its marketing, switching as it did from regular sales days to an everyday low-price scheme. Customers fled, sales plunged, and Penney risks financial disaster. I likened the new advertising to begging and thought it unseemly for the venerable retailer to get on its knees.

Spirits maker Beam  (NYSE: BEAM  ) did the same thing after its Maker's Mark brand announced that it was going to water down its iconic bourbon to stretch volume, lowering alcohol content from 45% to 42%. After the outcry, it quickly reversed course and made a big show of contrition on its Facebook page.

While this seems to be a new trend in corporate advertising -- making a big blunder and then telling your customers you're sorry -- it's not really all that novel. Coca-Cola  (NYSE: KO  ) famously (or infamously) was forced to acknowledge the error of its ways with New Coke -- but there seems to be more of this kind of thing around these days. 

Beam released its first-quarter earnings results the other day and noted a spike in Maker's Mark sales because of its "error." First-quarter comparable sales surged 44% as management attributed the sustained demand to its proposed change. Some are even hinting at the possibility it was all a calculated move, though as Penney can attest, throwing consumers off their stride can be deadly.

After Anheuser-Busch InBev  (NYSE: BUD  ) got sued for watering down its beer earlier this year, it may be time for it to go on an apology tour in hopes of causing a recovery in beer sales.

So there could be hope for Penney in Beam's effort. Although the distiller admits the sales growth rate is unsustainable, it did revive an interest in the brand, and even Coke credits the New Coke debacle with helping it regain lost market share from PepsiCo. Although there's a big difference in a bourbon or cola and an amorphous clothing and housewares chain, perhaps asking forgiveness will have a similar salutary effect on Penney's sales numbers after all.

If you're wondering whether J.C. Penney is a buy today, you're invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about Penney's turnaround -- or lack thereof. Simply click here now for instant access.

Target Reports 40 Million Credit, Debit Cards May Have Been Hacked

By Hal M. Bundrick

NEW YORK (MainStreet) Your holiday shopping may have just taken an ugly turn. If you shopped at a Target store between November 27 and December 15 and used a debit or credit card, keep a close eye on your bank account. There's a good chance you've been hacked. Some 40 million cards accounts may be affected by an expansive security breach, according to a Target statement. The company has retained the services of a third-party forensics firm to assist in the investigation.

"Target's first priority is preserving the trust of our guests and we have moved swiftly to address this issue, so guests can shop with confidence. We regret any inconvenience this may cause," said Gregg Steinhafel, chairman, president and CEO of Target. "We take this matter very seriously and are working with law enforcement to bring those responsible to justice."

The popular national chain says the "issue has been identified and resolved." Unauthorized access to Target payment data potentially impacts purchases made at all of the 1,797 Target stores in the U.S. during the two and a half week period. "We began investigating the incident as soon as we learned of it," a statement on the Target Website says. "We have determined that the information involved in this incident included customer name, credit or debit card number, and the card's expiration date and CVV (the three-digit security code)." Consumers are urged by the company to keep a close eye on their accounts for signs of fraud or identity theft. Any suspicious or unusual activity should be reported to the financial institution that issued the credit or debit card. --Written by Hal M. Bundrick for MainStreet

Top 10 Oil Companies To Watch For 2014

October 24, 2013: U.S. markets opened higher Tuesday morning as investors interpreted the weak non-farm payroll report�to indicate a continuation of the Fed�� asset purchase program at existing levels. That�� probably a good bet at least for the next couple of months. How good? The S&P 500 index closed at an all-time high today.

European and Latin American closed mostly higher today while Asian markets were mixed.

Wednesday�� calendar includes the following scheduled data releases and events (all times Eastern).

7:00 a.m. – Mortgage Bankers Association purchase applications 8:30 a.m. – Import and export prices 9:00 a.m. – FHFA house price index 10:30 a.m. – EIA weekly petroleum status report

Here are the closing bell levels for Tuesday:

S&P500 1754.67 (+10.01; +0.57%) DJIA 15467.46 (+75.26; +0.49%) NASDAQ 3929.57 (+9.52; +0.24%) 10YR TNOTE 2.516% (+0.78125) Gold $1,342.60 (+26.80; +2%) WTI Crude oil $97.80 (-1.42; -1.4%) Euro/Dollar: 1.3784 (+0.0102; +0.74%)

Big Earnings Movers: Netflix Inc. (NASDAQ: NFLX) is down 9% at $322.99 after a stellar report and some cautionary comments from the CEO. VMware Inc. (NYSE: VMW) is up 2.9% at $85.01 after a very positive report. Delta Air Lines Inc. (NYSE: DAL) is up 3.3% at $25.51 after a solid quarter. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is up 3.7% at $36.35 on an earnings boost from its recent oil and gas acquisitions. RadioShack Corp. (NYSE: RSH) is down 17.9% at $2.89 after a reporting dismal results.

Top 10 Oil Companies To Watch For 2014: Transocean Inc.(RIG)

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:

• [By Dividend]

  Transocean (RIG) has a market capitalization of $16.64 billion. The company employs 18,400 people, generates revenue of $9.196 billion and has a net income of $816.00 million. Transocean�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.592 billion. The EBITDA margin is 39.06 percent (the operating margin is 17.21 percent and the net profit margin 8.87 percent).

• [By Arjun Sreekumar]

  Another major risk is equipment failure, which could lead to major fines, as well as jeopardize the company's reputation. For instance, rig provider Transocean (NYSE: RIG  ) came under attack for its involvement in the 2010 Deepwater Horizon incident, in which a BP (NYSE: BP  ) well blew out, leading to a fire and subsequent explosion aboard the Deepwater Horizon rig that discharged nearly 5 million barrels of oil into the Gulf of Mexico. �

• [By Holly LaFon]

  In 2008, when most of the market was crashing, Passport�� returns when down with it, like most funds. They posted a 50.9 percent loss that year. Though 13Fs from the period are not available, a Forbes article from April 2008 says that a quarter of the fund was invested in basic materials such as iron ore and gold miners, with other large positions in Indian financial exchange firm Financial Technologies, Asian education company Raffles Education, Yamana Gold (AUY) and Transocean (RIG).

Top 10 Oil Companies To Watch For 2014: BlueFire Equipment Corp (BLFR)

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Advisors' Opinion:

• [By CRWE]

  Today, BLFR surged (+8.91%) up +0.049 at $.599 with 202,607 shares in play thus far (ref. google finance Delayed: 12:28PM EDT July 15, 2013).

  BlueFire Equipment Corporation previously reported field testing of its proprietary polycrystalline diamond cutter (PDC) drill bits has exceeded company expectations.

  BlueFire�� exclusive technology provides the potential for higher rates of penetration (ROP) and longer bit runs in hard rock formations and shales.

  BlueFire Equipment Corporation Chairman and CEO William A. Blackwell said, ��.S. drilling companies continue to seek out and employ new technologies to improve performance and effectiveness. Culminating years of research and development, BlueFire has taken a ground up approach to redesigning the PDC bit to help meet these needs.��/p>

• [By CRWE]

  Today, BLFR has surged (+5.08%) up +0.030 at $.620 with 208,022 shares in play thus far (ref. google finance Delayed: 11:01AM EDT July 19, 2013).

  BlueFire Equipment Corporation previously reported field testing of its proprietary polycrystalline diamond cutter (PDC) drill bits has exceeded company expectations.

  BlueFire�� exclusive technology provides the potential for higher rates of penetration (ROP) and longer bit runs in hard rock formations and shales.

  BlueFire Equipment Corporation Chairman and CEO William A. Blackwell said, ��.S. drilling companies continue to seek out and employ new technologies to improve performance and effectiveness. Culminating years of research and development, BlueFire has taken a ground up approach to redesigning the PDC bit to help meet these needs.��/p>

Top Penny Stocks For 2014: Freedom Energy Holdings Inc (FDMF)

Freedom Energy Holdings, Inc. (FDMF), incorporated in June 2005, is a holding company with a focus on the identification of opportunities within the oil and energy sectors. KC-9000 is the Company�� heavy oil technology, to assist in the recovery of heavy oil. As of December 31, 2011, the Company research had developed and shown a new product SR-139 at breaking down asphalt shingles allowing the extraction and recovery of hydrocarbons.

KC-9000 is a micro-emulsion technology. KC 9000 is a micro-emulsion developed to assist in the recovery and extraction of heavy based hydrocarbons that are saturated with high metals and paraffin content. KC 9000 is used for tank cleaning processes. By injecting KC 9000 directly into the tank port holes, at the tank bottom, with the emulsifies turning into an easily extractable slurry.

Top 10 Oil Companies To Watch For 2014: Royal Caribbean Cruises Ltd.(RCL)

Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisi�es de France. The Royal Caribbean International brand provides various itineraries and cruise lengths with options for onboard dining, entertainment, and other onboard activities primarily for the contemporary segment. It offers surf simulators, water parks, ice skating rinks, rock climbing walls, and shore excursions at each port of call, as well as boulevards with shopping, dining, and entertainment venues. The Celebrity Cruises brand operates onboard upscale ships that offer luxurious accommodations, fine dining, personalized services, spa facilities, venue featuring live grass, and glass blowing studio for the premium segment, as well as resells computers and other media devices. The Pullmantur brand provides an array of onboard activities and serv ices to guests, including exercise facilities, swimming pools, beauty salons, gaming facilities, shopping, dining, complimentary beverages, and entertainment venues serving the contemporary segment of the Spanish, Portuguese, and Latin American cruise markets. The Azamara Club Cruises brand offers various onboard services, amenities, gaming facilities, fine dining, spa and wellness, butler service for suites, and interactive entertainment venues for the up-market segment of the North American, United Kingdom, German, and Australian markets. The CDF Croisieres de France brand offers seasonal itineraries to the Mediterranean; and various onboard services, amenities, entertainment venues, exercise and spa facilities, fine dining, and gaming facilities for the contemporary segment of the French cruise market. As of December 31, 2011, the company operated 39 ships with a total capacity of approximately 92,650 berths. Royal Caribbean Cruises Ltd. was founded in 1968 and is headqua rtered in Miami, Florida.

Advisors' Opinion:

• [By Caroline Bennett]

  Royal Caribbean Cruises (NYSE: RCL  ) has signed a contract with shipyard Meyer Werft to begin building a new Quantum-class cruise ship, its third such vessel, the company announced today. The ship is scheduled for delivery during the middle of 2016.

Top 10 Oil Companies To Watch For 2014: Linn Energy LLC (LINE.O)

Linn Energy, LLC (LINN Energy) is an independent oil and natural gas company. The Company�� properties are located in the United States, primarily in the Mid-Continent, the Permian Basin, Michigan, California and the Williston Basin. Mid-Continent Deep includes the Texas Panhandle Deep Granite Wash formation and deep formations in Oklahoma and Kansas. Mid-Continent Shallow includes the Texas Panhandle Brown Dolomite formation and shallow formations in Oklahoma, Louisiana and Illinois. Permian Basin includes areas in West Texas and Southeast New Mexico. Michigan includes the Antrim Shale formation in the northern part of the state. California includes the Brea Olinda Field of the Los Angeles Basin. Williston Basin includes the Bakken formation in North Dakota. On December 15, 2011, the Company acquired certain oil and natural gas properties located primarily in the Granite Wash of Texas and Oklahoma from Plains Exploration & Production Company (Plains).

On November 1, 2011, and November 18, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On June 1, 2011, it acquired certain oil and natural gas properties in the Cleveland play, located in the Texas Panhandle, from Panther Energy Company, LLC and Red Willow Mid-Continent, LLC (collectively Panther). On May 2, 2011, and May 11, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Williston Basin. On April 1, 2011, and April 5, 2011, the Company completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On March 31, 2011, it acquired certain oil and natural gas properties located in the Williston Basin from an affiliate of Concho Resources Inc. (Concho). During the year ended December 31, 2011, the Company completed other smaller acquisitions of oil and natural gas properties located in its various operating regions. As of December 31, 2011, the Company operated 7,759 or 69% of its 11,230 gross produc! ! tive wells.

Mid-Continent Deep

The Mid-Continent Deep region includes properties in the Deep Granite Wash formation in the Texas Panhandle, which produces at depths ranging from 10,000 feet to 16,000 feet, as well as properties in Oklahoma and Kansas, which produce at depths of more than 8,000 feet. Mid-Continent Deep proved reserves represented approximately 47% of total proved reserves, as of December 31, 2011, of which 49% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 285 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.

Mid-Continent Shallow

The Mid-Continent Shallow region includes properties producing from the Brown Dolomite formation in the Texas Panhandle, which produces at depths of approximately 3,200 feet, as well as properties in Ok lahoma, Louisiana and Illinois, which produce at depths of less than 8,000 feet. Mid-Continent Shallow proved reserves represented approximately 20% of total proved reserves, as of December 31, 2011, of which 70% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 665 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.

Permian Basin

The Permian Basin is an oil and natural gas basins in the United States. The Company�� properties are located in West Texas and Southeast New Mexico and produce at depths ranging from 2,000 feet to 12,000 feet. Permian Basin proved reserves represented approximately 16% of total proved reserves, as of December 31, 2011, of which 56% were classified as proved developed reserves.

Michigan

The Michigan region includes proper ties producing from the Antrim Shale formation in the no! rthe! rn ! part o! f the state, which produces at depths ranging from 600 feet to 2,200 feet. Michigan proved reserves represented approximately 9% of total proved reserves, as of December 31, 2011, of which 90% were classified as proved developed reserves.

California

The California region consists of the Brea Olinda Field of the Los Angeles Basin. California proved reserves represented approximately 6% of total proved reserves, as of December 31, 2011, of which 93% were classified as proved developed reserves.

Williston Basin

The Williston Basin is one of the premier oil basins in the United States. The Company�� properties are located in North Dakota and produce at depths ranging from 9,000 feet to 12,000 feet. Williston Basin proved reserves represented approximately 2% of total proved reserves, as of December 31, 2011, of which 48% were classified as proved developed reserves.

Top 10 Oil Companies To Watch For 2014: Western Refining Inc.(WNR)

Western Refining, Inc. operates as an independent crude oil refiner and marketer of refined products. The company operates in three segments Refining Group, Wholesale Group, and Retail Group. The Refining Group segment operates two refineries in Texas and Mexico; two stand-alone refined product distribution terminals in New Mexico; and four asphalt terminals in Texas, as well as operates crude oil transportation and gathering pipeline system in New Mexico. It refines various grades of gasoline, diesel fuel, jet fuel, and other products from crude oil, other feedstocks, and blending components; and acquires refined products through exchange agreements and from various third-party suppliers. This segment sells its products through its wholesale group and service stations, independent wholesalers and retailers, commercial accounts, and sales and exchanges with oil companies. The Wholesale Group segment distributes commercial wholesale petroleum products primarily in Arizona, California, Colorado, Nevada, New Mexico, Texas, and Utah for retail fuel distributors, as well as for the mining, construction, utility, manufacturing, transportation, aviation, and agricultural industries. The Retail Group segment operates service stations, which include convenience stores or kiosks that sell various grades of gasoline, diesel fuel, general merchandise, and beverage and food products to the general public. As of February 24, 2012, it operated 210 service stations with convenience stores or kiosks located in Arizona, New Mexico, Colorado, and Texas. The company was incorporated in 2005 and is headquartered in El Paso, Texas.

Advisors' Opinion:

• [By Ben Levisohn]

  Westlake also finds Western Refining (WNR) and�Delek US (DK) interesting, while upgrading�Calumet Specialty Products to Neutral from Underperform as “the themes which drove expected underperformance have now become more visible.”

Top 10 Oil Companies To Watch For 2014: Precision Drilling Corp (PDS)

Precision Drilling Corporation (Precision) is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States. The Company operates in two segments: Contract Drilling Services, and Completion and Production Services. In Canada, the Contract Drilling Services segment includes land drilling services, directional drilling services, procurement and distribution of oilfield supplies and the manufacture and refurbishment of drilling and service rig equipment, and the Completion and Production Services segment includes service rigs for well completion and workover services, snubbing services, camp and catering services, wastewater treatment services and the rental of oilfield surface equipment, tubulars, well control equipment and wellsite accommodations.

Top 10 Oil Companies To Watch For 2014: Enhanced Oil Resources Inc (EOR)

Enhanced Oil Resources Inc. is a natural resource company. The Company is engaged in the acquisition, exploration, exploitation, and development of natural resource properties in the Southwestern United States. The Company produces oil and gas from three Permian Basin crude oilfields located in eastern New Mexico and certain oilfield properties (Winters Fields) located near Abilene, Texas. The Company, through its wholly owned subsidiary EOR Operating Inc., owns a 98% interest in the 800 acre Crossroads Siluro-Devonian Unit and a 100% interest in an adjacent 160 acre lease. The Company, through its wholly owned subsidiary EOR Operating Inc., owns a 99% interest in the 4,880 acre Milnesand San Andres Unit and a 100% interest in the adjacent 1,800 acre Horton Federal lease.

Top 10 Oil Companies To Watch For 2014: Halliburton Company(HAL)

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Travis Hoium]

  In the early to mid 2000s, companies such as Halliburton (NYSE: HAL  ) developed the technology to extract both oil and gas from shale plays economically, unlocking energy plays across the country. One of the largest plays in oil was the Bakken Shale in western North Dakota and eastern Montana, and companies flooded in to pick up as much land as possible.

• [By Paul Ausick]

  Oilfield services firms have been allowed to work in Mexico, and Halliburton Co. (NYSE: HAL) is especially well-positioned to step up its business in Mexico. Last summer the company agreed to provide production services at a price of one cent per barrel in a new field believed to hold 341 million barrels of oil equivalent. Halliburton has worked in Mexico for years, and the company’s patient spade work is likely to lead to more contracts now.

• [By Dimitra DeFotis]

  Among energy stocks rising today: Producers of gas and gas liquids were higherm, including Devon (DVN) and�Consol Energy (CNX) rose about 2% each, while drillers�Nabors Industries (NBR) and�Rowan Companies (RDC) jumped more than 3% apiece. Oilfield services names Halliburton (HAL) and Baker Hughes (BHI) each rose nearly 2%.

• [By Sue Chang]

  Halliburton Co. (HAL) �is likely to report third-quarter earnings of 82 cents a share.

Top 10 Oil Companies To Watch For 2014: Markwest Energy Partners LP (MWE)

MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.

Southwest Segment

The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.

The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.

Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.

Northeast Segment

The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers.

Liberty Segment

The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.

Utica Segment

Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.

Gulf Coast Segment

The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.

Advisors' Opinion:

• [By Matt DiLallo]

  Moving Marcellus gas
  In Summit's second deal it is purchasing the Mountaineer Midstream gas-gathering system in the Marcellus from MarkWest (NYSE: MWE  ) �for�$210 million.�The newly constructed 40-mile system leads into MarkWest's Sherwood Processing Complex which is currently being expanded from 400 million cubic feet per day to 800 million cubic feet per day of processing capacity. The system Summit is acquiring is secured by a long-term, fee-based contract with Antero Resources. Again, the company is picking up an asset that has secured revenue while providing MarkWest with capital so it can grow its processing capacity.

• [By Mike Deane]

  After the bell on Tuesday, Markwest Energy Partners LP (MWE) announced its third quarter earnings, with revenue rising substantially from last year’s third quarter.

  MWE Earnings in Brief

  -Markwest’s revenue for the quarter came in at $420.5 million, a huge gain from last year’s same quarter revenue of $280.6 million. This was still not enough to top analysts’ revenue estimates of $458.22 million
  -Even with much higher revenue, MWE still posted a loss for the quarter of $20.03 million, which was more than last year’s loss of $15.27 million.
  -The company posted an EPS loss of 17 cents, which was larger than last year’s Q3 loss of 13 cents, and far below the analysts’ estimate of 24 cents EPS profit.

  CEO Commentary

  Frank Semple, Markwest’s chairman, president and CEO, had the following comments about the quarterly results: ��ur results reflect the continued success of our producers��as they rapidly develop their acreage positions in high-quality unconventional resource plays, as well as several short-term operational constraints that we have recently experienced in the Northeast. Development of the Marcellus and Utica Shales continues to provide us with significant future growth opportunities for the expansion of critical midstream infrastructure. We are committed to providing our producers with exceptional customer service and unique solutions that will support their ongoing success.��/p>

  Dividend

  Markwest made no mention of a dividend change in its earnings report, which was not a surprise, as the company just raised its quarterly dividend by 1 cent at the end of October. The quarterly dividend of 85 cents went ex-dividend on November 5 and will be paid this Thursday. Markwest has raised its dividend every quarter for the past three years.

  Stock Performance

  MWE stock was up 39 cents, or 0.52%, at Tuesday’s market close. YTD, the company’s s

• [By Matt DiLallo]

  In Magnum Hunter's two core operating areas, the Williston Basin and the Appalachian Basin, it has felt this impact directly. The company has been forced to endure production shut-ins because critical midstream assets, like those now in service by MarkWest (NYSE: MWE  ) , weren't yet available. Further, in order to access MarkWest's plants, Magnum Hunter has been building the pipeline infrastructure critical to connect its gas to these plants. As seen in the map below, Magnum Hunter's Eureka Hunter Pipeline is providing it with critical access to MarkWest's new Mobley plant: