Why Tumblr Didn't Turn Out More Like Twitter

Twitter was founded in March 2006. Tumblr was created in February 2007. Twitter has 230 million monthly active users, 53 million of them in the U.S. Tumblr is thought to be within an order of magnitude of that — between 30 million and 50 million actives, plus more than 300 million unique visitors. The two even share some DNA: Tumblr founder David Karp says Twitter borrowed the concept of the retweet from an action on his platform, the reblog.

Yet Twitter went public Thursday, raising $1.8 billion and achieving a market valuation of $31 billion by the end of the day, while Tumblr sold itself to Yahoo Yahoo for $1.1 billion in May amid reports that it was running short of money.

As the saying goes: Results may vary. But why?

"I think every company's different, every founder's different," says Bijan Sabet, whose venture firm, Spark Capital, was an early investor in both social startups. "They're two different situations. It's a funny day when we look at $1.1 billion as small."

Granted. But all else being equal, every founder would agree that $31 billion is cooler than $1.1 billion. And when I profiled David Karp for FORBES last year, he made it clear that an eventual IPO was at least on his mind, if not his preferred scenario. In a market where less-established startups like Snapchat and Pinterest are fetching valuations of several times Tumblr's sales price, it's worth asking why two outwardly similar companies that long appeared to be on similar trajectories ended up with such different outcomes.

I posed that question to a handful of smart people: Sabet of Spark Capital; venture capitalist David Pakman, a partner at Venrock Associates; Nihal Mehta, general partner at ENIAC Ventures and executive chairman of LocalResponse LocalResponse; Chris Tolles, co-founder and CEO of Topix; and Gartner analyst Brian Blau. Here's what they see as the key differentiators:

Leadership. This might be the big one, since everything a company does and is flows from its leadership. Tumblr spent the last year of its life as an independent company ostensibly on the hunt for its its own "Sheryl Sandberg" — a strong business executive who could complement Karp the way Sandberg does Mark Zuckerberg at Facebook. That it never found that person probably speaks to a lack of desire or interest on Karp's part.

Twitter certainly had its own leadership issues, but the appointment of Dick Costolo as CEO in 2010 put a period on them. " In order to build a company that is of value to brands, you actually have to want to do it from the top down," says Pakman. "You can't do it reluctantly. In Dick, you've got a guy who's really excited to build an unbelievably interesting advertising medium."

Karp's lack of interest in the mechanics of revenue was a big factor in winding up at Yahoo, Sabet agrees. "David's true love is product and thinking about the user," he says. "Now he gets to do that full time."

Brand. It may not have the market penetration of Facebook, but every wired American knows Twitter's little blue bird symbol. Do you know Tumblr's logo? Probably not. "It hasn't been able to break out to the mass market the way Twitter says," says Mehta. "You can't imagine your parents ever having a Tumblr account. That's a big difference."

It's one that stems from who sets the tone on the network. Twitter undertook a concerted campaign to get actors, comedians, athletes and politicians using its service, notes Gartner's Blau. "Tumblr did the same thing, but the people that self-selected Tumblr was the artist and designer crowd," he says. "Those are not influencers. In fact, those are people who really want to be off by themselves."

Content. In several ways, the nature of content that thrived on Tumblr made it a difficult business proposition. Some unknown proportion is pornography; estimates range as high as 30%. (One study found that 11.4% of the 200,000 most-visited domains were adult content.) A good deal more of it is copyrighted material, republished without consent. "I think Twitter is an important thought platform for the world, whereas Tumblr just isn't — it's a reblog site for 'memes,'" says Tolles.

Don't underestimate the importance of format, either. In the 140-character tweet, Twitter invented the equivalent of a new quantum particle — something that seemed like it should have existed all along. "They found a communications mechanism that really resonates with people," says Blau.

Mobility. Twitter was born as an SMS application. The migration of the internet from desktops to smartphones was never anything but a good thing for its growth. Meanwhile, "Tumblr was very desktop and had to port to mobile," notes Mehta. That posed various challenges. It's hard to blog from a phone, and the big, gorgeous images that populate so many Tumblrs don't look like much on a 3-inch screen.

Data: While Tumblr had a lot of users, on a per-user basis they weren't nearly as valuable to marketers as the people on Twitter or Facebook, says Pakman. The nature of follow/friend relationships on those sites generates the kind of data advertisers crave — about interests, affinities, personal relationships. "In the case of Tumblr, it's not really clear what the data tells you," he says. "It's not clear why people follow other people. It seems to be because you like their creative expression. I'm not sure that's very valuable data."

Geography. Karp has always said Tumblr's New York City location was a crucial element of its success. Tolles disagrees. "It's hard to make a platform work outside Silicon Valley. I just think there's a set of resources that NYC doesn't have that gets brought to bear — executive talent, technical talent and a desire to work together with other people in the industry."

——-

Update: I added a second, lower estimate of the amount of pornographic content on Tumblr to give a better idea of the possible magnitude of the issue.

Also on Forbes:

Yahoo's Top 10 Biggest Acquisitions

This Energy Bank's Fueling Change

10 Best Casino Stocks To Buy For 2014

Times are changing for this leading energy company, as asset sales needed to pay off debt have started to decline, meaning a new plan of attack needs to be introduced, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

Back in August, I wrote that Chesapeake Energy (CHK) was more a restructuring story than a production story. Judging from the company's November 6 report for the third quarter, that has started to change. Asset sales, to pay off debt, have started to decline. The capital budget is still shrinking, but not as quickly. Operating cash flow is on the increase. And production, once you account for asset sales, is climbing.

The stock pulled back sharply, dropping 6.8% for the day, on November 6, on the earnings news, but I think that's mostly a reflection of Chesapeake's huge move this year and an inappropriately negative reaction to the company's projections that production would fall in the fourth quarter. Yes, it will, as the company completes more asset sales. But that is part of the company's successful, so far, turnaround strategy.

The shares are up 59.9% for 2013 to date, and up 19% since I added them to my Jubak's Picks portfolio on June 7, 2013.

As of yesterday, November 6, I'm leaving my target price for June 2014 at $33 a share. That's roughly 26% above the November 6 closing price of $26.23.

Let's get the conventional quarterly numbers out of the way quickly. For the period, Chesapeake Energy reported earnings of 43 cents a share, excluding one-time items. That was a penny better than the Wall Street estimate. Revenue climbed 63.9% year over year to $4.87 billion. Wall Street was projecting revenue of $3.58 billion.

Daily production for the quarter fell 2% from the third quarter of 2012. Adjusting for the company's asset sales in the Mississippi Lime, Eagle Ford, Haynesville, and Permian Basis geologies, production climbed 8% year over year and 5% from the second quarter of 2013.

The number most important to me, however, is operating cash flow. That climbed to $1.37 billion, up 22% year over year. With operating cash flow in the black, and with capital spending projected to fall another $300 million in 2013, Chesapeake is moving toward the point where it doesn't need to be quite so aggressive about asset sales. In the first nine months of 2013, Chesapeake completed asset sales of about $3.6 billion. The company projects asset sales of another $600 million in the last quarter of the year and further asset sales in 2014. But the pace of asset sales is slowing, as the company gradually reduces what was once a staggering debt load. Net debt fell to $11.8 billion in the third quarter, down from $12.4 billion in the second quarter and $13.4 billion in the first quarter.

That's important to investors because they want Chesapeake to hold onto as many of its best assets as it can. Chesapeake's portfolio of oil and natural gas assets reads like a wish list of the leading non-conventional US oil and gas plays: In mid-2013, Chesapeake had 15 million acres in US on-shore oil and natural gas assets including leading positions in the Barnett, Haynesville/Bossier, Marcellus, Eagle Ford, Powder River Basin, Utica, and Anadarko Basin geologies. Chesapeake is now in the process of rationalizing its development of those holdings by prioritizing the drilling of the most profitable wells, and by applying the most cost effective drilling and grouping strategies.

If you think of Chesapeake as a huge energy bank, this process will allow the company to maximize the assets in the vault and to let the value of those assets compound over time.

I'd be a buyer on the November 6 drop.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did own shares of Chesapeake Energy as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here.

10 Best Penny Stocks For 2014

LONDON -- The�FTSE 100�set a five-and-a-half-year record of 6,638 points last Friday, and though the index is down from that today at 6,617, it still looks like hanging on to the 6,600 level -- even if that absolute value is ultimately meaningless. The top-tier index is also set to record its sixth successive close above 6,500 today, barring any afternoon slump. Recent levels are a far cry from the FTSE's 52-week low of just 5,230 points, set on June 1, 2012.

Which of the U.K.'s major companies are helping push up the FTSE? Here are three reaching new highs of their own today:

GlaxoSmithKline
Shares in pharmaceuticals giant and�Beginners' Portfolio�member�GlaxoSmithKline� (LSE: GSK  ) (NYSE: GSK  ) are up nearly 20% over the past 12 months, having hit a 52-week high of 1,692 pence today -- though as I write, the price is back a penny from that on 1,691 pence.

Despite the effect of the "patent cliff" when drug protection expires, and threats from generic competition, Glaxo has keep earnings up and there's a modest rise expected for the year to December -- the firm appears to be managing its expansion into new biotechnology areas reasonably well. The P/E is around the FTSE average of 14 even after the rise, and we have a nice dividend yield of 4.7% forecast for 2013.

10 Best Penny Stocks For 2014: PIMCO California Municipal Income Fund III(PZC)

PIMCO California Municipal Income Fund III is a close ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. It is co-managed by Pacific Investment Management Company LLC. The fund invests in fixed income markets. Its investment portfolio include California municipal bonds, and other municipal bonds and notes; California variable rate notes and other variable rate notes; California variable rate demand notes and other variable rate demand notes; U.S. treasury bills; and call options written and put options written. Allianz Global Investors Fund Management LLC serves as an investment Manager to the fund. PIMCO California Municipal Income Fund III was formed in 2002 and is based in New York City.

10 Best Penny Stocks For 2014: Qualstar Corporation(QBAK)

Qualstar Corporation designs, develops, manufactures, and sells automated magnetic tape libraries used to store, retrieve, and manage electronic data primarily in network computing environments worldwide. Its tape libraries consists of cartridge tape drives, tape cartridges, and robotics to move the cartridges from their storage locations to the tape drives under software control. The tape libraries also provide data storage solutions for organizations requiring backup, recovery, and archival storage of critical electronic information. The company also offers ancillary products related to its tape libraries, such as tape media, tape magazines, cables, bar code labels, and fiber channel adapters. In addition, it designs, develops, and sells switching power supplies that are used to convert alternate current line voltage to direct current voltages for use in electronic equipment, such as telecommunications equipment, servers, routers, switches, lighting, and gaming devices. Qualstar Corporation sells its tape drive products primarily to value added resellers and original equipment manufacturers, as well as switching power supplies primarily to original equipment manufacturers, contract manufacturers, and distributors. The company was founded in 1984 and is headquartered in Simi Valley, California.

Top Oil Stocks To Buy For 2014: Gentiva Health Services Inc.(GTIV)

Gentiva Health Services, Inc. provides home health services and hospice care in the United States. The company offers skilled nursing and therapy services, paraprofessional nursing services, and homemaker services primarily to adult and elderly patients through licensed and Medicare-certified agencies. It also provides its services through specialty programs comprising Gentiva Orthopedics, which offers individualized home orthopedic rehabilitation services to patients recovering from joint replacement or other major orthopedic surgery; Gentiva Safe Strides that provides therapies for patients with balance issues; and Gentiva Cardiopulmonary, which helps patients and their physicians manage heart and lung health in a home-based environment. In addition, the company offers services through Gentiva Neurorehabilitation, which helps patients who have experienced a neurological injury or condition by removing the obstacles to healing in the patient?s home; Gentiva Senior Health that addresses the needs of patients with age-related diseases and issues; and Rehab Without Walls unit, which provides neurorehabilitation therapies for patients with traumatic brain injury, cerebrovascular accident injury, and acquired brain injury. Further, it offers consulting services to home health agencies, which include operational support, billing and collection activities, and on-site agency support and consulting. Additionally, the company provides hospice services primarily in the patient?s home or other residence, such as an assisted living residence or nursing home, as well as in a hospital. Gentiva Health Services, Inc. was founded in 1999 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By Sean Williams]

  Last week, we saw home-health sector stocks like Amedisys (NASDAQ: AMED  ) and Gentiva Health Solutions (NASDAQ: GTIV  ) get clobbered because the Centers for Medicare and Medicaid Services recommended a 1.5% reduction in Medicare reimbursements each year between 2014 and 2017. With Amedisys and Gentiva reliant on Medicare for more than 80% and 90% of their revenue, respectively, it could put hospitals that rely on government reimbursements in a growth bind.�

10 Best Penny Stocks For 2014: UFP Technologies Inc.(UFPT)

UFP Technologies, Inc., through its subsidiaries, engages in the design and manufacture of engineered packaging solutions for medical and scientific, automotive, aerospace and defense, computer and electronics, industrial, and consumer markets. The company offers packaging products primarily using polyethylene, polyurethane, cross-linked polyethylene foams, and rigid plastics. Its packaging products include end-cap packs for computers, corner blocks for telecommunications consoles, anti-static foam packs for printed circuit boards, die-cut or routed inserts for cases, molded foam enclosures for orthopedic products, and plastic trays for medical devices and components. UFP Technologies also fabricates and molds component products made from cross-linked polyethylene foam and other materials, as well as engages in laminating fabrics and other materials to cross-linked polyethylene foams, polyurethane foams, and other substrates. The company?s component products include automo tive interior trim, athletic padding, industrial safety belts, medical device components, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, anti-fatigue mats, and shock absorbing inserts used in athletic and leisure footwear. It sells its products primarily under United Foam, Simco Automotive, and Molded Fiber brand names through direct sales force, independent manufacturer representatives, and distributors. The company was founded in 1963 and is headquartered in Georgetown, Massachusetts.

10 Best Penny Stocks For 2014: Brocade Communications Systems Inc.(BRCD)

Brocade Communications Systems, Inc. supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Its Data Storage segment provides infrastructure products and solutions, including directors, switches, routers, fabric-based software applications, distance/extension products, management applications, and utilities to centralize data management; and host bus adapters, converged network adapters, mezzanine cards, and switch modules for bladed servers. The company?s Ethernet Products segment offers Open Systems Interconnection Reference Model (OSI) Layer 2-3 switches and routers, which enable the use of bandwidth-intensive network business applications and digital entertainment on local area networks and wide area networks; and OSI Layer 4?7 switches that allow enterprises and service providers to build network infrastructures to direct the flow of traffic, and file area network products and associated management s olutions. The company?s Global Services segment provides break/fix maintenance, extended warranty, installation, consulting, network management, and related software maintenance and support services; consulting and support services that assist customers in designing, implementing, deploying, and managing networking solutions; and post-contract customer support and extended warranties. It serves various businesses and organizations, which include global enterprises and service providers, such as telecommunication firms, cable operators, and mobile carriers. The company has a strategic partnership with LG-Ericsson. It offers its products and services to end-user customers directly, and through various distribution partners comprising original equipment manufacturers, distributors, systems integrators, and value-added resellers in the United States, western Europe, Japan, and the greater Asia Pacific region. The company was founded in 1995 and is headquartered in San Jose, Cali fornia.

Advisors' Opinion:

• [By Lauren Pollock]

  Brocade Communications Systems Inc.(BRCD) raised its stock buyback program to $1 billion from $308 million, as the company cited confidence in generating greater cash flow as well as its long-term business prospects. Shares rose 3.8% premarket to $8.49.

• [By Selena Maranjian]

  The biggest new holdings are McGraw-Hill Financial�and industrial machinery specialist Gardner Denver. Other new holdings of interest include Kodiak Oil & Gas (NYSE: KOG  ) and Brocade Communications Systems (NASDAQ: BRCD  ) . Kodiak recently bought 42,000 acres in the productive Bakken region, upping its assets there by 27%, and adding thousands of new barrels of oil to its production levels. Bulls love Kodiak's rapid growth and see more room to grow. Bears worry that it might be too focused on the Bakken and not sufficiently diversified.

10 Best Penny Stocks 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 P.I.A.]

  Of its Ultra-deepwater units (greater than 5,000 feet depth), the company currently has three semi-submersible rigs that are capable of use in water to 10,000 feet, and total depth of 30,000 feet. All of them have been located in Brazil and used by Petrobas (West Taurus, owned by Ship Finance; West Eminence; and West Orion). Several drill ships for use in 12,000 feet of water, and total depths to 40,000 feet, are under construction and scheduled to be available in 2014. New ultra-deepwater floating equipment is expected to perform better and be safer, in consideration of Transocean's (RIG) Deepwater Horizon Incident, which has ongoing implications.

• [By Taylor Muckerman and Joel South]

  Shareholders of Transocean (NYSE: RIG  ) should be busy this weekend reading up on how the two proposed dividends could affect the company financially and about the backgrounds of the nominees to the Board of Directors. Each of these decisions will likely weigh heavily on the future outlook of Transocean which resides in a competitive and growing industry.��

• [By Tom Stoukas]

  Transocean Ltd (RIG), the world�� largest supplier of offshore oil rigs, posted the biggest gain on the SMI, rising 1.4 percent to 41.26 francs.

10 Best Penny Stocks For 2014: Magic Software Enterprises Ltd.(MGIC)

Magic Software Enterprises Ltd. develops, markets, and supports software development and deployment technology and applications. It offers uniPaaS, an application platform for developing and deploying business applications; and iBOLT, a platform for business and process integration. The company?s uniPaaS and iBOLT platforms enable enterprises to accelerate the process of building and deploying applications to customize and integrate with existing systems. It also provides information technology (IT) professional services in the areas of infrastructure design and delivery, application development, and technology planning and implementation services, as well as supplemental staffing services. In addition, the company offers consulting services in connection with installation assurance, application audits and performance enhancement, application migration, and application prototyping and design; maintenance contracts; technical support; and training on its development tools. Magic Software Enterprises Ltd. provides its products and services through a network of regional offices, independent software vendors, system integrators, distributors, and value added resellers, as well as through original equipment manufacturers and consulting partners in approximately 50 countries worldwide. It serves finance, insurance, government, health care, logistics, manufacturing media, retail, and telecommunications industries. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel. Magic Software Enterprises Ltd. is a subsidiary of Formula Systems (1985) Ltd.

10 Best Penny Stocks For 2014: Skechers U.S.A. Inc.(SKX)

Skechers U.S.A., Inc. engages in the design, development, marketing, and distribution of footwear for men, women, and children in the United States and internationally. The company offers various products comprising casuals, such as boots, shoes, and sandals for men, as well as slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals; relaxed fit for men; sandals; and casual fusion under the Skechers USA brand name. It also provides a line of sport footwear for men and women, including men?s lifestyle athletic footwear, lightweight women?s sneakers, and sport sandals under the Skechers Sport brand name. In addition, the company offers men?s and women?s casuals, field boots, hikers, and athletic shoes under the Skechers Work brand name; and a range of infants, toddlers, boys, and girls? boots, shoes, and sneakers under the Skechers Kids brand name. Further, its product line includes Skechers Active products, such as casual everyday and sport fusi on sneakers for females; Tone-ups and Tone-ups Fitness products comprising casual and athletic-inspired sandals for women, as well as sneakers; Shape-ups toning footwear for men and women; and Skechers Resistance Runner technical shoes for runners. Skechers U.S.A. markets its products through department and specialty stores, athletic and independent retailers, and boutiques, catalog and Internet retailers, as well as through own e-commerce Website and retail stores. As of February 15, 2011, it operated 105 concept stores, 99 factory outlet stores, and 40 warehouse outlet stores in the United States, as well as 28 concept stores and 16 factory outlets internationally. The company was founded in 1992 and is headquartered in Manhattan Beach, California.

Advisors' Opinion:

• [By Associated Press]

  Federal prosecutors and the Securities and Exchange Commission on Thursday filed criminal and civil charges against fired KPMG partner Scott London for conspiracy to commit securities fraud through insider trading. The 24-page affidavit filed in support of the criminal complaint alleges that London, 50, of Agoura Hills, Calif., provided confidential information about KPMG clients Herbalife (NYSE: HLF  ) , Skechers USA (NYSE: SKX  ) , Deckers Outdoor (NASDAQ: DECK  ) , RSC Holdings, and Pacific Capital to Bryan Shaw, a close friend, from late 2010 until last month. Prosecutors allege that Shaw made more than $1.2 million in illicit profits by trading in advance of company announcements on earnings results or mergers.

10 Best Penny Stocks For 2014: CSP Inc.(CSPI)

CSP Inc. engages in the development and marketing of information technology (IT) integration solutions and high-performance cluster computer systems to industrial, commercial, and defense customers worldwide. The company operates in two segments: Systems, and Service and System Integration. The Systems segment designs and manufactures specialty, high-performance computer signal processing systems for the aerospace and defense markets. These systems are used on land, and in airborne and shipboard platforms for high-speed digital signal processing in radar, sonar, and surveillance applications. The Service and System Integration segment consists of the computer maintenance and integration services, and third-party computer hardware and software value added reseller businesses. It also provides professional IT consulting services, including maintenance and technical support; implementation, integration, configuration, and installation services; enterprise security intrusion p revention, network access control, and unified threat management services; IT security compliance services; custom software applications and solutions development and support; and monitoring, reporting, and management of alerts for the resolution and preventive general IT and IT security support tasks. This segment offers its solutions and services for IT environments, including storage and servers, unified communications solutions, IT security solutions, and consulting services. The company markets its products and services through direct sales force, distributors, and resellers. CSP Inc. was founded in 1968 and is headquartered in Billerica, Massachusetts.

10 Best Penny Stocks For 2014: Flanigan's Enterprises Inc.(BDL)

Flanigan's Enterprises, Inc. operates a chain of full-service restaurants and package liquor stores in south Florida. It operates restaurants under Flanigan?s Seafood Bar and Grill name, which offers alcoholic beverages and full food services; and package liquor stores under Big Daddy?s Liquors name that provides brand name and private label liquors, beer, and wines. As of April 2, 2011, the company operated 24 units that consists of restaurants, package liquor stores, and combination restaurants/package liquor stores; 1 adult entertainment club; and franchised 5 units comprising 1 restaurant and 4 combination restaurants/package liquor stores. Flanigan's Enterprises, Inc. was founded in 1959 and is headquartered in Fort Lauderdale, Florida.

Stock futures trade lower ahead of Twitter debut

U.S. stock futures traded with modest losses as investors prepared to welcome Twitter to the New York Stock Exchange.

The micro-blogging service is due to start trading Thursday under the TWTR symbol. The company priced its shares at $26 each on Wednesday, which means it will raise around $2.1 billion from the IPO amid strong demand.

TWITTER IPO: All eyes on NYSE for Twitter IPO

MARKET DEBUT: Twitter prices IPO at $26

Ahead of that, Dow Jones industrial average index futures, Standard & Poor's 500 index futures and Nasdaq index futures were all down by around 0.1%.

On Wednesday, the Dow climbed 0.8% 15,746.88, the S&P 500 rose 0.4% to 1,770.49 and the Nasdaq ended down 0.2% to 3,931.95.

STOCKS: Dow hits new closing high, Nasdaq slips

In macroeconomic news, market expectations are growing that the European Central Bank and the Bank of England will not cut interest rates at policy meetings Thursday to shore up a recovery from recession.

In the commodities space, benchmark crude oil prices for December delivery were down 3 cents at $94.77 in electronic trading on the New York Mercantile Exchange. The contract rose $1.43 to close at $94.80 a barrel on Wednesday.

Asian stock markets were mostly weaker Thursday, with a cautious mood prevailing ahead of key U.S. data that will provide further clues on when the Federal Reserve will cut monetary stimulus. The Nikkei 225 index fell 0.8% in Japan.

The major European benchmarks were trading mostly flat. Germany's DAX 30 index was down 0.1% and the FTSE 100 index fell by a similar amount in the United Kingdom.

Contributing: Associated Press

10 Best High Tech Stocks To Buy Right Now

JUBA, South Sudan (AP) -- Following a lengthy Cabinet meeting, South Sudan's government spokesman said Wednesday that the country will continue to export oil through Sudan and that there had been only a temporary slowdown in production.

An official in South Sudan's oil ministry earlier told The Associated Press that Sudan had blocked the export of South Sudanese oil. The official insisted he not be identified because he is not authorized to release the information. But government spokesman Barnabas Marial Benjamin said later that it was only a temporary slowdown.

"It is not really a shutdown," Benjamin said, before explaining a technical process behind storage procedures and valve openings. "But as we speak now P2 is going to be opened later on this afternoon and the oil will continue to flow to reach Port Sudan."

Benjamin downplayed the summoning of the Chinese envoy to South Sudan over recent oil issues. South Sudan's oil industry sector is dominated by Chinese companies.

10 Best High Tech Stocks To Buy Right Now: Digital Realty Trust Inc.(DLR)

Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. It focuses on strategically located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter users, including the information technology departments of Fortune 1000 companies, and financial services companies. The company?s property portfolio consists of Internet gateway properties, corporate datacenter properties, technology manufacturing properties, and regional or national offices of technology companies. As of December 31, 2008, Digital Realty?s portfolio consisted of 75 properties, including 62 located in North America and 13 located in Europe. Digital Realty Trust has elected to be treated as a REIT for federal income tax purpo ses and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 2004 and is headquartered in San Francisco, California with additional offices in Boston, Chicago, Dallas, Los Angeles, New York, Northern Virginia, and Phoenix, as well as in Dublin, London, and Paris.

Advisors' Opinion:

• [By Eric Volkman]

  Digital Realty Trust (NYSE: DLR  ) results for the specialty REIT's Q1 have been released. For the quarter, operating revenues totaled $358 million, an improvement over the $283 million in the same period the previous year. Net income available to common shareholders advanced to $43 million ($0.34 per diluted share) from Q1 2012's $39 million ($0.36). Funds from operations, considered an important metric for REITs, also grew by 9%, to $1.16 per share. The year-ago quarter's FFO came in at $1.06.

• [By Rich Duprey]

  Data center solutions specialist�Digital Realty� (NYSE: DLR  ) �said yesterday it�will pay a�regular quarterly dividend�of $0.78 per share on its common stock on June 28 to the holders of record at the close of business on June 14.�

10 Best High Tech Stocks To Buy Right Now: Forest Place Group Ltd(FPG.AX)

Forest Place Group Limited engages in the ownership, development, and operation of retirement villages and residential aged care facilities (nursing homes) in south-east Queensland, Australia. The company?s portfolio comprises five retirement villages located in Albany Creek, Clayfield, Cleveland, Durack, and Taringa. It leases and re-leases 102 accommodation units in its owned retirement villages. The company is based in Brisbane, Australia.

10 Best Heal Care Stocks To Watch Right Now: Sappi Limited(SPP)

Sappi Limited manufactures and sells various pulp, paper, chemical cellulose, and wood products worldwide. It offers coated woodfree paper used for marketing promotions and brochures, catalogues, corporate communications materials, direct mail, textbooks, and magazines; uncoated woodfree paper used for business forms, business stationery, tissue, photocopy paper, books, brochures, and magazines, as well as cut-size, preprint, and office paper; specialty woodfree paper used in bags, labels, and packaging; and release paper for use in textile, automotive, furniture, and engineering film markets. The company also provides packaging paper products, including containerboards, sack kraft, and grocery bags used for primary and secondary packaging of fast moving consumer goods, and agricultural and industrial products. In addition, it offers mechanical newsprint paper used in advertising inserts and newspapers; uncoated mechanical fiber based printing paper used for the printing o f books and advertising inserts; and coated mechanical fiber-based paper used for magazines, catalogues, and advertising material. Further, the company provides pulp products, including paper pulp used in the production of printing, writing, and packaging paper; and chemical cellulose used in the manufacture of various cellulose textile and non-woven fiber products, as well as used in various other cellulose-based applications in the food, film, cigarette, chemical, and pharmaceutical industries. Additionally, Sappi Limited offers sawn timber for construction and furniture manufacturing purposes. Its customers include printers, publishers, corporate end-users, suppliers, and converters. The company was formerly known as South African Pulp and Paper Industries Limited and changed its name to Sappi Limited in 1973. Sappi Limited was founded in 1936 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:

• [By Seth Jayson]

  Sappi (NYSE: SPP  ) reported earnings on May 9. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q2), Sappi beat slightly on revenues and met expectations on earnings per share.

10 Best High Tech Stocks To Buy Right Now: Mariner Corporation Limited(MCX.AX)

Mariner Corporation Limited engages in the management of investment schemes in Australia. It also involves in the cattle leasing activities. The company was founded in 2003 and is based in Melbourne, Australia.

10 Best High Tech Stocks To Buy Right Now: Access International Education (AOE.V)

Access International Education Ltd., through its subsidiaries, provides educational and training programs to students. It offers senior secondary school programs, post-secondary school certificates, and diploma courses in Canada and the People�s Republic of China; and school-in-school English as a secondary language courses in the People�s Republic of China. The company was formerly known as Alcanta International Education Ltd. and changed its name to Access International Education Ltd. in December 2000. Access International Education Ltd. was incorporated in 1967 and is based in Calgary, Canada.

10 Best High Tech Stocks To Buy Right Now: Ultrapetrol(Bahamas)

Ultrapetrol (Bahamas) Limited, an industrial shipping company, provides marine transportation services primarily in South America, Europe, and Asia. Its shipping operations encompass grain, forest products, minerals, crude oil, petroleum, and refined petroleum products transportation for the shipping and offshore oil platform supply markets. The company operates in three segments: River, Offshore Supply, and Ocean. The River segment owns and operates river barges and pushboats that transport dry bulk and liquid cargos through the Hidrovia Region of South America. As of December 31, 2010, it had 602 barges and 33 pushboats with approximately 1,060,340 deadweight (dwt) capacity. The Offshore Supply segment owns and operates vessels that provide critical logistical and transportation services for offshore petroleum exploration and production companies in the North Sea and the coastal waters of Brazil. This segment?s fleet consists of seven platform supply vessels (PSVs) in o peration and five PSVs under construction. The Ocean segment operated 8 ocean-going vessels, including 4 product tankers, 2 container feeder vessels, 1 oceangoing pushboat, and 1 inland tank barge with an aggregate carrying capacity of approximately 110,000 dwt tons. The company was founded in 1992 and is headquartered in Nassau, the Bahamas.

10 Best High Tech Stocks To Buy Right Now: Oaktree Capital Group LLC (OAK)

Oaktree Capital Group, LLC (Oaktree) is a global investment management firm focused on alternative markets. Oaktree manages funds in investment strategies that fall into the six asset classes, which include distressed debt, corporate debt, control investing, convertible securities, real estate and listed equities. As of June 30, 2011, the Company�� assets under management (AUM) totaled $79.5 billion. The Company�� manager is Oaktree Capital Group Holdings GP, LLC. The Company manages assets on behalf of other institutional investors in the world, including 70 of the 100 United States pension plans, 37 states in the United States, over 350 corporations, over 300 university and charitable endowments and foundations, and over 150 non-United States institutional investors, including six of the top 10 sovereign wealth fund nations.

Funds managed by Oaktree include both separate accounts and commingled funds. The commingled funds include open-end and closed-end limited partnerships for which the Company or a subsidiary serves as the general partner or, in certain limited cases, co-general partner. Oaktree makes principal investments in these funds.

Advisors' Opinion:

• [By Bloomberg News]

  Oaktree Capital Group LLC (OAK), the world�� largest distressed-debt investor, is buying Chinese stocks after valuations tumbled, Chairman Howard Marks said.

• [By Dividend]

  Oaktree Capital (OAK) has a market capitalization of $9.73 billion. The company employs 750 people, generates revenue of $144.98 million and has a net income of $6,672.42 million. Oaktree Capital�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $-638.22 million. The EBITDA margin is -440.21 percent (the operating margin is -445.31 percent and the net profit margin 4,602.21 percent).

• [By Robert Rapier]

  In contrast with the steady distribution at IEP, investors in Oaktree Capital (NYSE: OAK) saw a 50 percent sequential payout cut as the prior payment was boosted by the profitable liquidation of an unusually large distressed debt fund. Still, this top alternative asset manager remains on track with 30 percent year-over-year growth in distributable earnings and $3.7 billion of gross capital raised for the quarter. Oaktree units initially slumped 5 percent on earnings news, but much of that discount evaporated in a matter of hours, underscoring strong investor support for this partnership, which has given us a 10 percent capital gain in under two months. Continue buying OAK on pullbacks below $56.

10 Best High Tech Stocks To Buy Right Now: Quantum Energy Ltd (QTM.AX)

Quantum Energy Limited, together with its subsidiaries, engages in the manufacture and distribution of energy saving hot water, heating, and cooling systems for residential and commercial markets in Australia and internationally. It provides solar power systems, hot water heaters, and pool heaters, as well as commercial and industrial building heaters. The company is also involved in the distribution of medical products primarily in the field of nuclear medicine. Quantum Energy Limited is based in Alexandria, Australia.

10 Best High Tech Stocks To Buy Right Now: Curis Inc.(CRIS)

Curis, Inc., a drug discovery and development company, focuses on the research and development of cancer therapeutics. The company, under collaboration with Genentech, Inc., is conducting a pivotal Phase II clinical trial on its lead molecule, GDC-0449 in advanced basal cell carcinoma patients, as well as various Phase II clinical trials in first-line metastatic colorectal cancer and advanced ovarian cancer patients. It is also evaluating CUDC-101, a small molecule that is in a Phase I clinical testing and is designed to target histone deacetylase, epidermal growth factor receptor, and epidermal growth factor receptor 2. In addition, Curis has a development candidate, Debio 0932, which is a Heat Shock Protein 90 or Hsp90 inhibitor. The company holds a license agreement with Debiopharm related to its Hsp90 technologies. Further, it involves in preclinical testing for the development of candidates from its targeted cancer programs. The company was founded in 2000 and is base d in Lexington, Massachusetts.

Advisors' Opinion:

• [By Monica Gerson]

  Curis (NASDAQ: CRIS) dipped 18.97% to $3.16 in the pre-market session after the company reported Q3 financial results and provided CUDC-427 development update.

10 Best High Tech Stocks To Buy Right Now: Ramco-Gershenson Properties Trust(RPT)

Ramco-Gershenson Properties Trust, a real estate investment trust (REIT), engages in the ownership, development, acquisition, management, and leasing of community shopping centers, single tenant retail properties, and one regional mall in the Midwestern, Southeastern, and Mid-Atlantic regions of the United States. As of December 31, 2007, the company owned interests in 89 shopping centers, which included 65 community centers, 21 power centers, 2 single tenant retail properties, and 1 enclosed regional mall. Ramco-Gershenson Properties has elected to be a taxable REIT for federal income tax purposes. As a REIT, it would not be subject to federal income taxes, if it distributes approximately 90% of its taxable income to its shareholders. The company was founded in 1988 and is based in Farmington Hills, Michigan with additional office in Boca Raton, Florida.

Top 10 Canadian Stocks To Invest In Right Now

Travelers (NYSE: TRV  ) has traveled north of the border for its latest large-scale asset purchase. The company announced Monday that it has agreed to a deal with Canada's E-L Financial to acquire The Dominion of Canada General Insurance.

The price is roughly $1.1 billion in cash, although the final amount is subject to adjustment.

In the press release announcing the news, Travelers quoted CEO Jay Fishman as saying that Dominion is "a great franchise, and this is a very good opportunity for Travelers to significantly improve its market position and scale in a meaningful market."

The American firm said Dominion's Canadian operations would be integrated with its own in that country, and the blended firms would have their headquarters in Toronto. Dominion's current CEO, Brigid Murphy, will serve in the same capacity for the combined entity. The Dominion was founded in 1887 in Toronto and has expanded across Canada. The transaction is expected to close in the fourth quarter.

Top 10 Canadian Stocks To Invest In Right Now: Crown Castle International Corporation (CCI)

Crown Castle International Corp., through its subsidiaries, owns, operates, and leases towers and other wireless infrastructure primarily in the United States and Australia. Its infrastructure includes distributed antenna system (DAS) networks, as well as rooftop installations. The company involves in the rental of antenna space of its towers to wireless communications companies. It also provides network services relating to its towers, which primarily include antenna installations and subsequent augmentations, as well as additional services, such as site acquisition, architectural and engineering, zoning and permitting, other construction, and other services related network development. As of December 31, 2010, it owned, leased, or managed approximately 23,900 towers, including 43 completed DAS networks. The company was founded in 1994 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Jon C. Ogg]

  We just gave a fresh synopsis of which telecom and wireless players could still be up for M&A in the final round of consolidation. American Tower’s market cap is about $28 billion and shares are up more than 4.5% at $71.75. To show how hard things have been, the 52-week trading range is $67.89 to $85.26. What today’s transaction does is quite simply add value to the rest of the public companies that own and operate cell towers:

  Crown Castle International Corp. (NYSE: CCI) is up almost 2.5% at $70.90, against a 52-week range of $63.16 to $81.16. SBA Communications Corp. (NASDAQ: SBAC) is up about 1.8% at $76.70. against a 52-week range of $59.00 to $82.31.

  American Tower expects that the portfolio addition will generate about $345 million in revenues and approximately $270 million of gross margin in 2014. If you value the deal solely on the 5,400 or so owned U.S. towers, this comes up to about $611,000 per tower before calculating the debt and other rights. Suddenly, SBA Communications Corp. (NASDAQ: SBAC) is vindicated because a deal it made in 2012 was deemed pricey as it paid about $1.45 billion for 3,252 towers from TowerCo, at about $445,000 per tower. Crown Castle also has spent close to $2.4 billion to acquire T-Mobile cell tower rights in late 2012.

• [By Ben Rooney]

  AT&T (T, Fortune 500) shares gained after the company announced over the weekend that it had inked a $4.8 billion lease deal with Crown Castle International Corp (CCI).

Top 10 Canadian Stocks To Invest In Right Now: Grupo Televisa S.A.(TV)

Grupo Televisa, S.A.B., together with its subsidiaries, operates as a media company in Mexico and internationally. It operates in seven segments: Television Broadcasting, Pay Television Networks, Programming Exports, Publishing, Sky, Cable and Telecom, and Other Businesses. The Television Broadcasting segment engages in the production of television programming and broadcasting of channels 2, 4, 5, and 9; and production of television programming and broadcasting for local television stations in Mexico and the United States. The Pay Television Networks segment provides programming services for cable and pay-per-view television companies in Mexico, as well as other countries in Latin America, the United States, and Europe. The Programming Exports segment offers international licensing of television programming. The Publishing segment primarily publishes Spanish-language magazines in Mexico, the United States, and Latin America. The Sky segment provides direct-to-home broadcas t satellite pay television services in Mexico, Central America, and the Dominican Republic. The Cable and Telecom segment operates a cable and telecommunication system in the Mexico City metropolitan area. This segment provides data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network in Mexico and the United States; basic and premium television, pay-per-view, and telephone services. The Other Businesses segment engages in sports and show business promotion, soccer, feature film production and distribution, Internet, gaming, radio, and publishing distribution operations. The company was founded in 1990 and is headquartered in Mexico City, Mexico.

Advisors' Opinion:

• [By Daniel Cross]

  Grupo Televisa (NYSE: TV) is a broadcasting company that is set to take advantage of growth in several areas. The increase in the United States' Hispanic population means there are 53 million potential users of Spanish-language networks like Univision. Grupo Televisa receives royalties from licensing its programs to Univision, and revenue is expected to top $270 million this year. The emergence of Mexico as a manufacturing powerhouse means that the middle class should see a boost as well. Pay TV is popular in Mexico, as seen by a 12% rise in that segment's revenues from last year. Operating margins are improving as well, increasing from 17% in 2011 to 26% as of the most recent quarter.

Top 10 Tech Companies To Invest In Right Now: Stantec Inc(STN)

Stantec Inc. provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics in the areas of infrastructure and facilities for public and private sector clients in North America and internationally. The company involves in the design of healthcare, education, science and technology, airport, retail and commercial, and sports and recreation facilities. Its environmental solutions include water supply, treatment, storage, and distribution; wastewater collection, pumping, treatment, and disposal; watershed management; environmental assessment, documentation, and permitting; ecosystem restoration planning and design; environmental site management and remediation; subsurface investigation and characterization; and geotechnical engineering services. Stantec Inc. also provides industrial planning, functional programming, engineering, project mana gement, and construction support services in oil and gas, fossil and renewable energy, underground mining, linear infrastructure, power transmission and distribution, automotive, forest products, food and beverage, and general manufacturing sectors. In addition, the company prepares transportation master plans for communities; conduct transportation investment studies; plans and designs airport, transit, rail, and highway facilities; and provides administration and support services for the construction of specific projects, and ongoing management planning for the upkeep of transportation facilities, as well as simulation modeling services. Further, it offers urban land solutions for the land development, real estate, and retail and commercial industries, as well as professional services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canad a.

Top 10 Canadian Stocks To Invest In Right Now: Suntech Power Holdings Co. LTD.(STP)

Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Its products include monocrystalline and multicrystalline silicon PV cells; PV modules; and building-integrated photovoltaics products. In addition, the company provides PV system integration services, including designing, installing, and testing PV systems used in lighting for outdoor urban public facilities, as well as in farms, villages, and commercial buildings; and project development services. Its products are used to provide electric power for residential, commercial, industrial, and public utility applications. The company sells its products through value-added resellers, such as distributors and system integrators; and to end users, such as project develo pers primarily in Germany, Italy, Spain, France, Benelux, Greece, the United States, Canada, China, the Middle East, Australia, and Japan. Suntech Power Holdings Co., Ltd. is headquartered in Wuxi, the People?s Republic of China.

Advisors' Opinion:

• [By Dan Carroll]

  China's companies now have even less wiggle room to operate, considering lending's either expensive or hard to come by. As investment flows out of the country, unstable companies won't survive, even with government support. Solar-power company Suntech Power's (NYSE: STP  ) recent bankruptcy is an early sign of things to come. Suntech was the first Chinese solar-power company to go public when it hit the market in 2005, and generous public subsidies helped propel its growth. With money tightening across the country, Suntech's questionable business practices sank it -- the first of what could be more troubles to come for weaker Chinese company.

• [By Wall Street Sector Selector]

  Previous to last week's solar flare, the sector has suffered through some awful growing pains. The financial crisis resulted in reduced subsidies for development in the rapidly-advancing photovoltaic power industry. Meanwhile, China increased government financing of its solar industry, having already established a strong presence in the sector with such companies as Suntech Power (STP) and LDK Solar (LDK).

• [By Travis Hoium]

  Stick with quality
  LDK Solar and Suntech Power (NYSE: STP  ) have already defaulted on debt, and the most leveraged Chinese manufacturers may follow others into full on bankruptcy (Suntech's subsidiary is already bankrupt, but the parent company isn't). Betting on leverage and hope for a recovery in China is a dangerous game, and investors should stick with high-quality manufacturers.

Top 10 Canadian Stocks To Invest In Right Now: Canadian Imperial Bank of Commerce(CM)

Canadian Imperial Bank of Commerce provides various financial products, services, and advice to individual, small business, commercial, corporate, and institutional clients in Canada and internationally. The company offers retail markets services comprising personal banking, business banking, and wealth management services, as well as investment management services to retail and institutional clients. It also provides wholesale banking services, including credit, capital markets, investment banking, merchant banking, and research products and services to government, institutional, corporate, and retail clients. The company provides its services through its branch network, automated bank machines, mobile banking, and online banking site. As of June 3, 2011, it operated approximately 1,100 branches and 4,000 automated bank machines in Canada. The company was founded in 1867 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Sean Williams]

  Looking north for opportunities
  As I head north to Canada in a few days for a vacation of my own, I can't help but think that the Canadian Imperial Bank of Commerce (NYSE: CM  ) , known better as CIBC, is getting a bad rap from shareholders in recent months, despite being one of Canada's most stable money center banks.

• [By Tony Daltorio]

  One of his companies, Cheung Kong Holdings Limited (CHEUY), recently formed a 50/50 joint venture with Canadian Imperial Bank of Commerce (NYSE: CM) called CEF Holdings. They want to invest into beaten-down mining stocks and particularly gold equities.

• [By Dan Caplinger]

  It's easy for U.S. investors to paint Canadian banks with a single brush-stroke, as the differences in the banking system helped keep Bank of Montreal and its peers safer during the financial crisis five years ago. As Canada's housing market has kept rising even after the housing bust south of its border, however, investors have gotten increasingly concerned about the potential health of its banks, especially the largest ones. With downgrades for Canadian Imperial Bank of Commerce (NYSE: CM  ) , Toronto-Dominion (NYSE: TD  ) , and Bank of Montreal among a total of six banks in January, Moody's identified higher debt levels among Canadian consumers as driving potential risk for the economy.

• [By Rich Duprey]

  Canadian Imperial Bank of Commerce� (NYSE: CM  ) �announced this morning�its second-quarter dividend of $0.96 per share, a 2% increase over the $0.94-per-share payout it made last quarter.

Top 10 Canadian Stocks To Invest In Right Now: Nexen Inc.(NXY)

Nexen Inc. operates as an independent energy company worldwide. The company?s Conventional Oil and Gas segment explores for, develops, and produces crude oil and natural gas from conventional sources. This segment operates in the United Kingdom, Canada and the United States, and offshore West Africa, Colombia, and Yemen. Nexen?s Oil Sands segment develops and produces synthetic crude oil from the Athabasca oil sands in northern Alberta. The company?s Shale Gas segment explores for and produces unconventional gas from shale formations in northeastern British Columbia. Nexen Inc. was founded in 1971 and is headquartered in Calgary, Canada.

Top 10 Canadian Stocks To Invest In Right Now: Chipotle Mexican Grill Inc.(CMG)

Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in the United States, Canada, and England. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of December 31, 2011, it operated 1,230 restaurants, which includes 1 ShopHouse Southeast Asian Kitchen. Chipotle Mexican Grill, Inc. was founded in 1993 and is based in Denver, Colorado.

Advisors' Opinion:

• [By Ben Levisohn]

  Chipotle Mexican Grill (CMG) has gained 1.6% to $425.84 after it was upgraded to Overweight from Equal Weight by Morgan Stanley, while Panera Bread (PNRA) has fallen 1.7% to $161.25 after the investment bank downgraded it to Equal Weight from Overweight.

• [By Dan Caplinger]

  One way that Panera has successfully gone beyond its coffee rival is in offering catering services. The company saw its catering sales rise 19% last quarter, and Panera expects to continue to expand in the area as customers get familiar with its availability and convenience. Fellow healthy-eatery Chipotle (NYSE: CMG  ) announced at the beginning of the year that it would follow suit with its own catering service, seeking to keep up with its competitor's faster growth rate.

Top 10 Canadian Stocks To Invest In Right Now: S&P 500/Barra Value(SU)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro duction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary , Canada.

Advisors' Opinion:

• [By Arjun Sreekumar]

  Given current oil prices, that means several projects are barely profitable, leading some oil sands operators to reconsider new ventures. For instance, Suncor Energy (NYSE: SU  ) , one of the largest oil sands producers by output, has been mulling over the profitability of three mining-related ventures jointly proposed with French oil major Total (NYSE: TOT  ) .

• [By Selena Maranjian]

  Canada's largest energy company, Suncor Energy (NYSE: SU  ) gained 10%, and yields about 2.5%. The company has expertise in deep oil sands, which are not known for cleanliness, but it's also investing more heavily in renewable energies. In recent news, pipeline shutdowns due to flooding put a crimp�in production. Suncor is vulnerable to possible tightened regulations on pipelines, and its diversification beyond North America.

• [By Stephan Dube]

  Athabasca's most notable producers:

  Suncor Energy (SU) (Part 1), see article here.Suncor Energy (Part 2), see article here.Athabasca Oil (ATHOF.PK), see article here.Canadian Natural Resources, see article here.Imperial Oil, see article here.Cenovus Energy (CVE), see article here.MEG Energy (MEGEF.PK), see article here.Devon Energy, see article here.Royal Dutch Shell, see article here.Ivanhoe Energy (IVAN), see article here.Nexen (CNOOC) (CEO), see article here.

  An analysis of the current operations of the company will be examined with the objective to provide the most complete information available to potential investors before deciding to seize the opportunity that the 54,132 square miles of the Carbonate Triangle has to offer. Let's start by introducing Athabasca, a famous and most prolific region in the Canadian oil sands as well as one of the largest reserve in the world.

• [By Tyler Crowe]

  What a Fool believes
  When Suncor (NYSE: SU  ) , the largest producer of oil sands, is shelving oil sands projects, you know it's hard to make a Loonie in the Canadian oil sands business right now. For investors, there has been very little love on this roller coaster as of late. Hopefully, regions like the Utica will be a good luck charm and will help to resolve some of the operational woes for the region. Then all oil sands advocates will need to do is deal with is find a market that will buy its product. Gulp.

Top 10 Canadian Stocks To Invest In Right Now: Hudbay Minerals Inc (HBM)

HudBay Minerals Inc., an integrated mining company, engages in the exploration and development of copper, zinc, and precious metals mines in North and South America. It primarily produces copper concentrates containing copper, gold, and silver; and zinc metal. The company principally owns underground 777 mine that covers an area of 4,400 hectares and is located in Flin Flon, Manitoba. It also owns ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan. The company was founded in 1992 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  Dan also highlights a new agreement with Brazil's Vale (NYSE: VALE  ) as an example of a new partner streaming agreement that features a focus on gold. Can Silver Wheaton continue to profit from future agreements with partners such as Barrick Gold (NYSE: ABX  ) , Primaro Mining (NYSE: PPP  ) , and Hudbay Minerals (NYSE: HBM  ) ?

• [By Dan Caplinger]

  Dan, however, does believe CEO Randy Smallwood has the experience necessary to deal with these challenges. Strategies may include obtaining better terms from existing partners such as Barrick Gold (NYSE: ABX  ) , Goldcorp (NYSE: GG  ) , and Hudbay Minerals (NYSE: HBM  ) on future contracts.

• [By Sean Williams]

  In August, Silver Wheaton reached its most recent deal with HudBay Minerals (NYSE: HBM  ) , securing the rights to its silver production at a low fixed-cost of $5.90 per ounce and 100% of its gold production at its 777 mine through at least 2016 for $400 an ounce In return, Silver Wheaton will fork over up to $750 million in cash for the buildout of HudBay's Constancia mine. Even with the tumble metal prices took this week, Silver Wheaton's margins will continue to remain fat with gold hovering near $1,400 an ounce and silver near $23 an ounce, and its dividend could still head even higher.

Top 10 Canadian Stocks To Invest In Right Now: UniSource Energy Corporation(UNS)

UniSource Energy Corporation engages in the electric generation and energy delivery businesses. The company?s TEP segment generates, transmits, and distributes electricity to approximately 403,000 retail electric customers, including residential, commercial, industrial, and public sector customers in southeastern Arizona. It also sells electricity to other utilities and power marketing entities. As of December 31, 2010, this segment owned or leased 2,245 MW of net generating capacity, as well as owned or participated in electric transmission and distribution system consisting of 512 circuit-miles of 500-kV lines; 1,087 circuit-miles of 345-kV lines; 379 circuit-miles of 138-kV lines; 478 circuit-miles of 46-kV lines; and 2,621 circuit-miles of lower voltage primary lines. TEP segment generates electricity from coal, gas, oil, and solar sources. The company?s UNS Gas segment distributes gas to approximately 146,500 retail customers in Mohave, Yavapai, Coconino, and Navajo c ounties in northern Arizona, as well as Santa Cruz County in southeastern Arizona. As of December 31, 2010, this segment?s transmission and distribution system consisted of approximately 30 miles of steel transmission mains, 4,211 miles of steel and plastic distribution piping, and 136,439 customer service lines. The company?s UNS Electric segment transmits and distributes electricity to approximately 91,000 retail customers consisting of residential, commercial, and industrial customers in Mohave and Santa Cruz counties. As of December 31, 2010, UNS Electric?s transmission and distribution system consisted of approximately 56 circuit-miles of 115-kV transmission lines, 271 circuit-miles of 69-kV transmission lines, and 3,599 circuit-miles of underground and overhead distribution lines. This segment also owns the 65 MW Valencia plant, as well as 39 substations having an installed capacity of 1,788,050 kilovolt amperes. The company was founded in 1902 and is based in Tucson, Arizona.

Global Gaming Industry—Trick or Treat?

Growth and recovery continued for this hotel and casino company, not just in Las Vegas, but also in Macao, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

Thursday, October 31, MGM Resorts International (MGM) reported a loss for the September quarter of 7 cents a share. That compares with a loss of 37 cents a share in the September quarter of 2012. Excluding one-time items, the company moved into the black with earnings of 2 cents a share. That compares with a 3-cent a share loss in the September quarter of 2012. Revenue climbed 9% year over year. Cash flow rose 25% year over year. (MGM Resorts International is a member of my Jubak's Picks portfolio.)

The company's Las Vegas hotel and casino business continued its recovery. RevPAR (revenue per available room) rose 3% in the quarter. That was in line with guidance. In its conference call, the company forecast flat RevPAR in the fourth quarter, but then a pickup in the first quarter of 2014 that would continue throughout the year. The improvement is a result of a growth in convention bookings. (Convention goers pay higher room rates than leisure travelers.) The company normally has 80% of its convention target rooms booked by Halloween. This year, convention room booking was at 88% of target by Halloween.

The improvement in the company's Las Vegas business, where revenue climbed 6% year over year, was the payoff on room remodeling at the MGM Grand and the Bellagio, completed last year. Investments in nightclub, restaurant, and entertainment offerings at Mandalay Bay pushed EBITDA (earnings before interest, taxes, depreciation, and amortization) up 20% for the quarter year over year.

And MGM continued with the restructuring of the debt on its balance sheet that has added to cash flow during the company's recovery. In this case, it was a new $1.78 billion credit facility for the company's City Center project that reduced cash interest expense by about $80 million a year.

Growth was actually even better in MGM's Macao operation, although it did fall short of Wall Street expectations. Revenue from the Macao casino and hotel operation climbed 22% year over year and EBITDA rose 25% to $191 million. That missed Wall Street estimates for EBITDA by about 2%.

MGM's growth in Macao has been hampered by its lack of a second casino and hotel on the newly hot Cotai Strip, where its new development is projected to open in 2016. The company is on schedule to complete piling and site work by the end of 2013.

MGM's shares have recently climbed above my $18 target price to close last week at $19.30. As of Friday, November 1, I'm raising my target to $24 a share by October 2014.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did own shares of MGM Resorts International as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here.

401(k) Expenses Dropped in 2012: ICI

The expenses that 401(k) plan participants incurred for investing in long-term mutual funds—which include equity, bond and hybrid funds—declined in 2012, consistent with the downward trend of the past decade and a half, according to a just-released report by the Investment Company Institute.

The report, The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2012, found that plan participants holding mutual funds tend to invest in lower-cost funds. In 2012, the average expense ratio on equity funds offered for sale in the United States was 1.4%.

401(k) plan participants who invested in equity mutual funds paid less than half that amount, 0.63%, the study found. Expenses paid by 401(k) investors were also lower than the asset-weighted average expenses for all equity fund investors (0.77%).

“Our research bears out the fact that 401(k) plan participants investing in mutual funds tend to hold lower-cost funds,” said Sean Collins, ICI’s senior director of industry and financial analysis, in a statement. “As our study notes, this provides a market incentive for funds to offer their services at competitive prices. In addition, employers, as 401(k) plan sponsors, consider a range of factors when selecting investment options for the 401(k) plan, including performance, services, funds’ investment objectives, and, importantly, cost.”

Added Collins: “Plan sponsors are under competitive pressure to include in the plan menu funds that are responsive to participants’ desire for quality funds at a reasonable cost.”

For the last decade and a half, the ICI report notes that the costs 401(k) plan participants have incurred for investing in long-term mutual funds have declined.

Andrew Miller, director of retirement and investor services for the Principal Financial Group, told AdvisorOne in an email message that the ICI's report “validates one of the advantages of employer-sponsored plans: participants of all incomes have access to competitively priced mutual fund options they may not be able to access outside of the plan. There are no minimums for participants in 401(k) plans."

Miller adds that "while fees are important, the most effective way to evaluate their reasonableness is in the context of all the services offered to the plan and participants. The report emphasizes the valuable role of plan sponsors as fiduciaries in selecting and monitoring investments as well as other plan services that meet the needs of their employee demographics. As fiduciaries, they are charged with making sure fees are reasonable, another key advantage to employer-sponsored plans.”  

In 1998, 401(k) plan participants incurred expenses of 0.74% of the 401(k) assets they held in equity funds, the ICI report states. By 2012, that had fallen to 0.63%--a 15% decline. The expenses 401(k) plan participants incurred for investing in hybrid and bond funds have fallen even more, by 19% and 23%, respectively, from 1998 to 2012.

In line with the trend in recent years, the average expense ratio 401(k) plan participants incurred for investing in equity funds declined from 0.65% in 2011 to 0.63% in 2012, the study found.

Similarly, expense ratios that 401(k) plan participants paid for investing in hybrid funds fell from 0.61% in 2011 to 0.59% in 2012. The average expense ratio 401(k) plan participants incurred for investing in bond mutual funds dropped from 0.52% in 2011 to 0.50% in 2012.

Moreover, the study found that more than half of the $3.6 trillion invested in 401(k) plans at year-end 2012—or $2.1 trillion—was invested in mutual funds. Of the $2.1 trillion in 401(k) assets invested in mutual funds, 55% was in equity funds, 26% in hybrid funds, 15% in bond funds and 5% in money-market funds.

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Focus on debt funds as you near retirement: Wiseinvest

Rustagi recommends, "The focus for an individual close to retirement has to be primarily on investing predominantly in debt instruments. If he is looking at earning healthy return and a more tax efficient return, he can look at mutual funds. There are debt oriented hybrid funds. These are typically monthly income plans. He can opt for growth option under these plans. These funds typically invest around 80-85% money in debt and the balance is invested in equity. These are more tax efficient compared to traditional options like bonds and fixed deposits."

Here is the edited transcript of the interview on CNBC-TV18.

Q: An investor can invest Rs 2000 per month. He has a time horizon of three years. He wants to invest for his retirement. How should he allocate his money?

A: He has mentioned that he is 57 years old and will retire in the next three years. It is quite evident that he should not take too much of risk at this stage because once he retires, he has to ascertain what his needs are and may be then realign his portfolio.

Currently, his focus has to be primarily on an option which is investing predominantly in debt instruments. If he is looking at earning healthy return and a more tax efficient return, he can look at mutual funds. There are debt oriented hybrid funds. These are typically monthly income plans. He can opt for growth option under these plans. These funds typically invest around 80-85% money in debt and the balance is invested in equity. These are more tax efficient compared to traditional options like bonds and fixed deposits.

He can consider investing through SIP in Reliance MIP . He also invests around Rs 50,000 per month in gold. Looking at the return that gold has given over the past few years, my recommendation is that he should reduce his exposure to gold because it is very high compared to his overall portfolio. Some part of it can also go into debt oriented hybrid fund that will also help in terms of diversification and given better returns over the next couple of years.

There are two more funds that I recommend in the same space, Canara Robecco MIP and HDFC MIP long-term.
 
Q: An investor can invest Rs 5000 per month. His time horizon is 10-12 years. He wants to invest for his child's education. What is your advice?

A: Since he has a time horizon of 10-12 years, he can afford to invest predominantly in equity funds. Both funds that he is currently invested in are of good quality. These are HDFC top 200 and DSP Blackrock equity fund .

What he can do is he can invest around 60% of the money of Rs 5000 in these existing funds because there is no point in adding too many funds. So I would recommend that he can add Rs 2000, put additional money in HDFC top 200 and Rs 1000 in DSP equity and may be add one balance fund to create the right balance in the portfolio. He can look at HDFC balanced fund .

If I assume returns of around 12% over the next 10 years, he can hope to build a corpus of around Rs 11 lakh. He is looking to build a corpus of Rs 25 lakh for which he will have to invest Rs 11,000 per month. If he can't invest Rs 11,000 then I would say that he can begin with whatever he has right now and try and increase it over a period of time.

Another area where he needs to focus is also his insurance portfolio. He has two insurance policies - money back policy and endowment policy. These are basically not the right products to give you the adequate risk cover.

My recommendation is that he should look at a term plan and try and separate his risk cover from investments. For long-term investment, he can continue with the existing mutual funds because these two products that he has will give him guaranteed return but he will have to struggle to beat inflation.

Since his time horizon is 10 years, the bigger risk is inflation. He needs to invest to beat inflation. Debt funds have a role to play while investing for short to medium term because there the focus has to be on capital protection. While he needs to look at diversification in the portfolio, it need not be done for each of the goals because the time horizon is 10 years and because he is investing regularly. So the volatility risk automatically is taken care of.