Europe: Weaker Economy But Stocks Look Okay

European stocks surged during the summer, narrowing their wide gap with US equities after years of underperformance. But since autumn began, US stocks have retaken the lead.

This could be because the glimmers of hope that accompanied the euro zone’s economic improvement in the second quarter were dissipating with the renewed weakness in the third quarter.

But don’t count Europe’s stocks out, despite the feeble economy.

The overall economy of the 17-nation euro-currency bloc grew just 0.1 percent in the third quarter, or a 0.4 percent annual rate, from the second quarter, said Eurostat, the European Union’s statistical agency this week.

After the second-quarter results, there was some optimism that a sustainable recovery was starting after six straight quarters of contraction and five years of stagnation.

The overall European Union, made up of 28 countries, grew 0.2 percent from the second quarter (1 percent annualized) to the third, Eurostat said.

Other leading economies are doing considerably better. The US grew at an annualized 2.8 percent rate in the third quarter, although that number seems to have been boosted artificially by inventory buildups. Japan has reported 1.9 percent growth. China, the world’s fastest-growing major economy, said it expanded at a robust 7.8 percent rate in the third quarter.

In Germany, Europe’s biggest economy by far, quarterly growth slowed to 0.3 percent (1.2 percent annualized) from Q2′s 0.7 percent (2.8 percent), primarily because of flat growth of exports. Increased consumer spending was the major plus.

France’s economy, the region’s second largest, contracted 0.1 percent in the third quarter, down from 0.5 percent growth for the previous three months. Italy’s economy also shrank 0.1 percent, its ninth consecutive quarterly contraction. Germany, France and Italy together acc! ount for two-thirds of euro zone gross domestic product.

There was some good news. The economies of Spain and the Netherlands, the fourth and fifth-largest euro zone economies, inched ahead 0.1 percent, at least temporarily breaking their losing streak. And EU member Great Britain saw robust 0.8 percent quarterly growth.

As we advised in September, Europe’s “very gradual economic improvement would still be inadequate to reduce the euro zone’s main  problems, led by a record-high unemployment rate of 12.1 percent, hefty government debt, and uncompetitive labor costs, benefits and taxes.”

While the euro zone is growing slightly, unemployment, wages and inflation are all under significant pressure. The jobless rate now is at a peak of 12.2 percent. Annual inflation dropped to 0.7 percent in October, far below the European Central Bank’s target of almost 2 percent. In Ireland, Greece and Spain, inflation rates are at zero or lower.

No wonder the ECB last week made a surprise interest-rate cut, reducing its key lending rate to 0.25 percent, a record low. The ECB could take additional stimulus steps if  necessary, including private-sector asset purchases and even negative interest rates.

This ongoing willingness to provide monetary-policy support is a significant plus for European stocks in general, just as it has been here in the US.

Yet another reminder of that fact came this week with the testimony of Janet Yellen before the Senate Banking Committee on her nomination to succeed Chairman Ben Bernanke, whose term ends in January.

She indicated that she would stick to plans to wind down the central bank’s $85 billion-a-month bond-buying program in coming months if the economy picks up. But that’s a big if, as we’ve often advised. And she offered no timetable for when and how any tapering will occur.

“There is no set time,” said Yellen, who is currently the Fed vice chairwoman. “W! e have ma! de good progress, but we have farther to go to regain the ground lost in the crisis and the recession.”

As Yellen noted, the Fed still has a way to go in pursuit of its “dual mandate” for maximum employment and stable prices. Unemployment, currently at 7.3 percent, “is still too high, reflecting a labor market and economy performing far short of their potential,” she said. And inflation is below the central bank’s 2 percent target and will likely remain low for some time, she added.

What’s more, the Fed has continued to emphasize that short-term interest rates will remain low for a long time to come. And that may be even longer than generally expected now. The current position is that the Fed won’t raise rates until the unemployment rate drops below 6.5 percent. But an even lower threshold is being considered.

It’s no wonder that US stocks hit new all-time highs this week. Europe and the rest of the world also climbed.

Top 10 Performing Companies To Watch In Right Now

Sales at America's automakers have been going great guns these past few quarters, and you'd think that would be great news for the companies that make parts for all these shiny new autos. In some cases, you'd be right to think that. But in at least one case -- the case of Johnson Controls (NYSE: JCI  ) stock -- you'd be very, very wrong.

Shares of auto-parts makers such as Lear (NYSE: LEA  ) and Magna International (NYSE: MGA  ) have rocketed this past year, outperforming the S&P 500 with 46% and 56% returns, respectively. Yet Johnson Controls stock has lagged the market average by more than five points. Why?

Three reasons.

Johnson Controls stock is worse than average
Turns out that when you stack up Johnson Controls stock against its two smaller rivals, there's precious little to recommend it. Johnson Controls' P/E ratio of 27.8 is no bargain. It's more than twice the cost of a share of Magna (which costs 10.5 times earnings), and nearly six times the cost of Lear, which sells for only 4.7 times earnings.

Top 10 Performing Companies To Watch In Right Now: Nortec Ventures Corp. (NVT.V)

Nortec Minerals Corp., an exploration stage company, engages in the acquisition and exploration of mineral properties in Canada, Ecuador, and Finland. The company explores for gold, copper, silver, platinum, palladium, nickel, lithium, tin, tantalum, and cobalt ores. It owns interest in the Tammela project in south-west Finland; the Kaukua and Haukiaho projects in north-central Finland; the TL property in Northern Labrador, Canada.The company was formerly known as Nortec Ventures Corp. and changed its name to Nortec Minerals Corp. in January 2010. Nortec Minerals Corp. was incorporated in 1999 and is headquartered in Vancouver, Canada.

Top 10 Performing Companies To Watch In Right Now: Global Minerals Ltd (CTG.V)

Global Minerals Ltd., an exploration stage junior mining company, engages in the identification, acquisition, and exploration of mineral properties in Canada, the United States, and Europe. The company principally owns 100% interest in the Strieborna silver/copper/antimony project that consists of Roznava I and III mining license covering an area of approximately 140 hectares; Roznava East exploration license covering an area of approximately 1.61 square kilometers; and Roznava West exploration license covering an area of approximately 2.84 square kilometers. It also has additional exploration concessions covering an area of approximately 135 square kilometers surrounding the original mining and exploration concessions. The company was formerly known as Consolidated Global Minerals Ltd. and changed its name to Global Minerals Ltd. in November 2006. Global Minerals Ltd. was incorporated in 1989 and is headquartered in Vancouver, Canada.

Top Warren Buffett Companies To Own In Right Now: EntreMed Inc (ENMD.PH)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. E NMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Top 10 Performing Companies To Watch In Right Now: American Independence Corp.(AMIC)

American Independence Corp., through its subsidiaries, engages in the health insurance and reinsurance businesses in the United States. The company provides specialized health coverage and related services to commercial customers and individuals. It offers various insurance products comprising medical stop-loss, fully insured health and dental, and short-term statutory disability. American Independence Corp. offers its products and services through managing general underwriter and agency subsidiaries, independent brokers, producers, and agents. The company was incorporated in 1956 and is headquartered in New York, New York. American Independence Corp. operates as a subsidiary of Independence Holding Co.

Top 10 Performing Companies To Watch In Right Now: Empresa Distribuidora Y Comercializadora Norte S.A. (EDENOR)

Empresa Distribuidora y Comercializadora Norte S.A., a public service company, engages in the distribution and sale of electricity in Argentina. The company, through a concession, distributes electricity to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires. It serves residential, small and medium commercial, industrial, wheeling system, and public lighting customers. As of December 31, 2012, the company served 2,726,422 customers. The company was formerly known as Empresa Distribuidora Norte Sociedad An贸nima and changed its name to Empresa Distribuidora y Comercializadora Norte S.A. in June 1996. The company was founded in 1992 and is based in Buenos Aires, Argentina. Empresa Distribuidora y Comercializadora Norte S.A. is a subsidiary of Electricidad Argentina S.A.

Top 10 Performing Companies To Watch In Right Now: Northeast Utilities(NU)

Northeast Utilities, a public utility holding company, provides electric and natural gas energy delivery services to residential, commercial, and industrial customers in Connecticut, New Hampshire, and western Massachusetts. The company engages in the purchase, delivery, and sale of electricity; and owns and operates approximately 1,200 megawatts of primarily fossil-fueled electricity generation assets. As of December 31, 2010, it served approximately 1.2 million customers in 149 cities and towns in Connecticut; 497,000 retail customers in 211 cities and towns in New Hampshire; and 206,000 retail customers in 59 cities and towns in western Massachusetts. The company also operates a natural gas distribution system in Connecticut and serves approximately 206,000 customers in 71 cities and towns. It offers gas supply to commercial and industrial customers; and to residential customers for heating, hot water, and cooking needs, as well as provides gas transportation services t o commercial and industrial customers. In addition, the company offers electric transmission services. Northeast Utilities was founded in 1927 and is headquartered in Hartford, Connecticut.

Advisors' Opinion:

• [By Richard Stavros]

  Meanwhile, the companies that are projected to be spending more in 2015 than they are presently include The AES Corp (NYSE: AES), Ameren Corp (NYSE: AEE), American Electric Power Co Inc (NYSE: AEP), CMS Energy Corp (NYSE: CMS), and Northeast Utilities (NYSE: NU).

Top 10 Performing Companies To Watch In Right Now: Hillenbrand Inc(HI)

Hillenbrand, Inc. designs, manufactures, distributes, and sells funeral service products to licensed funeral directors operating licensed funeral homes. The company?s products include burial caskets, cremation caskets, containers, vaults, urns, and selection room display fixturing for funeral homes, as well as other personalization and memorialization products and services, including Web-based applications, and the creation and hosting of Websites for licensed funeral homes. It markets its products under the Batesville and Options brand name through direct sales force in the United States, Puerto Rico, Canada, Mexico, the United Kingdom, and Australia. The company also designs, produces, markets, sells, and services bulk solids material handling equipment and systems for various industrial markets, including plastics, food, chemicals, pharmaceuticals, power generation, coal mining, pulp and paper, frac sand, industrial minerals, agribusiness, recycling, wood and forest pr oducts, and biomass energy generation. It offers feeders and pneumatic conveying equipment under the K-Tron brand name; and size reduction equipment, such as hammer mills, double-roll crushers, wood and bark hogs, chip sizers, screening equipment, pneumatic and mechanical conveying systems, storage/reclamation systems, and specialty crushers and other equipment under the Pennsylvania Crusher, Gundlach, and Jeffrey Rader brand names. In addition, the company manufactures dry material separation machines that sort dry, granular products based on the particle?s size serving various industries, including frac sand, potash, urea, phosphates, chemical, agricultural, plastics, and food processing. The company sells its material handling equipment and systems worldwide through a combination of a direct sales force, and a network of independent sales representatives and distributors. Hillenbrand, Inc. was founded in 2008 and is headquartered in Batesville, Indiana.

Advisors' Opinion:

• [By WWW.GURUFOCUS.COM]

  Hillenbrand Inc. (HI), a diversified industrial company, makes and sells business-to-business products and services for various industries worldwide. Dec. 4, the company increased is quarterly dividend 1.3% to $0.1975 per share. the dividend is payable Dec. 31, 2013, to shareholders of record at the close of business on Dec. 17, 2013. The yield based on the new payout is 2.8%.

Top 10 Performing Companies To Watch In Right Now: Shell Refining Company (SHELL)

Shell Refining Company (Federation of Malaya) Berhad is principally engaged in refining and manufacturing of petroleum products. The Company operates primarily in Malaysia. Its operations also include the gas to liquids (GTL) plant of its kind in Bintulu, Sarawak, and a refinery in Port Dickson, Negeri Sembilan. Its upstream operations focus on the development and extraction of crude oil and natural gas offshore Sarawak and Sabah. In downstream its main activity is in refining, supply, trading and shipping of crude oil and petroleum products through the sales and marketing of transportation fuels, lubricants, specialty products and technical services. The Company is also a partner in two joint ventures that convert natural gas to liquefied natural gas. Royal Dutch Shell plc is its holding company.

Top 10 Performing Companies To Watch In Right Now: U308 Ltd(UTO.AX)

U3O8 Limited engages in the acquisition and exploration of uranium in Australia. It controls approximately 31 exploration licenses in Western Australia, Queensland, and South Australia. The company primarily focuses on the Ashburton project comprising 18 granted exploration tenements prospective for gold, silver, rare earths, base metals, and uranium located to the south of Paraburdoo in Western Australia; the Saltwater Pool Joint Venture project area prospective for gold and silver in the Ashburton area of Western Australia; the Ardmore project prospective for base metal and uranium mineralization located to the south of Mt Isa in Queensland; and the Olary Creek iron ore project located in South Australia. U3O8 Limited is based in West Perth, Australia.

Top 10 Performing Companies To Watch In Right Now: Insteel Industries Inc.(IIIN)

Insteel Industries, Inc. manufactures and markets steel wire reinforcing products for concrete construction applications. The company offers pre-stressed concrete strand (PC strand) and welded wire reinforcement (WWR) products. Its PC strand is a high strength seven-wire strand that is used to impart compression forces into precast concrete elements and structures, which may be either pre-tensioned or post-tensioned, providing reinforcement for bridges, parking decks, buildings, and other concrete structures. The company?s WWR is produced as either a standard or a specially engineered reinforcing product for use in nonresidential and residential construction. Its products comprise concrete pipe reinforcement, an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts, and precast manholes for drainage and sewage systems, water treatment facilities, and other related applications; engineered structural mesh, an engineered m ade-to-order product, which is used as the primary reinforcement for concrete elements or structures; and standard welded wire reinforcement, a secondary reinforcing product for crack control applications in residential and light nonresidential construction, including driveways, sidewalks, and various slab-on-grade applications. Insteel Industries sells its products through sales representatives to the manufacturers of concrete products, distributors, and rebar fabricators in the United States, Canada, Mexico, and Central and South America. The company was founded in 1958 and is headquartered in Mount Airy, North Carolina.

Advisors' Opinion:

• [By Seth Jayson]

  Insteel Industries (Nasdaq: IIIN  ) reported earnings on April 18. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 30 (Q2), Insteel Industries missed estimates on revenues and beat expectations on earnings per share.

Top 10 Performing Companies To Watch In Right Now: Reynolds American Inc(RAI)

Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. It offers cigarettes under the brand names of CAMEL, PALL MALL, WINSTON, KOOL, DORAL, SALEM, MISTY, and CAPRI; and cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand name, as well as manages various licensed brands, including DUNHILL and STATE EXPRESS 555. The company also provides smokeless tobacco products, including moist snuff under GRIZZLY and KODIAK brand names; pasteurized tobacco under CAMEL Snus brand name; milled tobacco under the brand name of CAMEL Dissolvables; other tobacco products, such as little cigars under WINCHESTER and CAPTAIN BLACK brand names; and roll-your-own tobacco under the brand name of BUGLER. RAI sells its products primarily through distributors, wholesalers, and other direct customers, including retail chains, as well as distributes its cigarettes to public warehouses. The compan y was founded in 1875 and is headquartered in Winston-Salem, North Carolina.

Advisors' Opinion:

• [By Dan Caplinger]

  On the other hand, toward the top of the return list, you'll find many old-economy stocks that were largely out of favor in 2000. Reynolds American (NYSE: RAI  ) has soared almost 2,500% since then, having overcome the threat of major tobacco-litigation losses largely unscathed. Pharmacy benefit manager Express Scripts (NASDAQ: ESRX  ) has climbed more than 2,200%, with several health-insurance companies also posting strong performance as the health-care industry has changed to favor companies that help manage costs of providing medical services.

• [By Sean Williams]

  Things aren't much better here, either
  Domestically, Altria (NYSE: MO  ) and Reynolds American (NYSE: RAI  ) have performed well, all things considered, with both stocks near an all-time high (adjusting for Altria's spinoff of Philip Morris International). However, the underlying fundamentals of the U.S. tobacco business aren't nearly as good as their stock prices would indicate. Altria laid off 15% of its workforce and Reynolds American 10% in response to falling cigarette volume. Furthermore, in President Obama's budget proposal, the federal cigarette tax would be raised 93% to $1.94 per pack, making it even more burdensome on American consumers to purchase a pack of cigarettes.�

• [By Alex Planes]

  The deal took 16 years for KKR to digest, and RJR Nabisco soon split back into its component parts. Today, R.J. Reynolds has become Reynolds American (NYSE: RAI  ) , and Nabisco's brands were shuttled from one tobacco company to another, becoming part of the Kraft food empire before spinning off into the hard-to-pronounce food conglomerate Mondelez International (NASDAQ: MDLZ  ) . Nabisco's Oreo was an important part of that spinoff -- it's been the world's most popular cookie for decades.

• [By Sean Williams]

  The end result of these multiple actions has been an ongoing reduction in smoking rates over the past four decades and tougher times for U.S. tobacco producers such as Altria (NYSE: MO  ) and Reynolds American (NYSE: RAI  ) . In fact, a tough domestic sales climate was one reason Altria decided to spin off its overseas operations into Philip Morris International (NYSE: PM  ) in 2008. By separating its business, the hope was that investors would have a better understanding of the fundamental forces driving Altria and Philip Morris.

Home Remodeling Boom Points To This ETF

Hot Insurance Companies To Invest In 2014

Data out last week from the US Department of Housing and Urban Development showed that sales of newly built single family homes declined by 7 percent in December, signaling a slowdown in the once resurgent US housing market.

But the news wasn’t all bad: US homes sales were 16 percent higher in 2013 than in 2012.

“December’s decline in new-home sales follows elevated levels in the previous two months and means the fourth quarter was still much stronger than the third,” says Rick Judson, chairman of the National Association of Home Builders (NAHB). “While we expect sales to gain strength in 2014, builders still face considerable constraints, including tight credit conditions for home buyers, and a limited supply of labor and buildable lots.”

On the surface, that would seem to show that homebuilding stocks could be a burden on investors’ portfolios, and to an extent, that may be true right now.

But there’s another area of the residential home market that growing fast, and deserves a closer look by investors.

I’m talking about the home remodeling market, which “should see strong growth in 2014”, according to a new study from the Joint Center for Housing Studies at Harvard University.

The study calls for “double-digit gains” in the remodeling sector in the first half of 2014, then moderating to 10 percent over the second half of the year.

“The ongoing growth that we’ve seen in home prices, housing starts, and existing home sales is also being reflected in home improvement activity,” says Eric S. Belsky, managing director of the JCHS.  “As owners gain more confidence in the housing market, they are likely to undertake home improvements th! at they have deferred.”

The US remodeling market has actually been on a steady upward path for three years. Data from the US Census Bureau shows that total US consumer remodeling expenditures grew from $111 billion in early 2011, to $153 billion at the end of 2013.

All of that activity should lead opportunistic investors toward home retailer-oriented stocks like Home Depot (NYSE: HD), Lowes (MYSE: LOW), and Bed, Bath and Beyond (NASDAQ: BBBY).

There’s a good case to be made for all three of the above stocks, but I’m not here to make one. I’m here to make a case for home retail-oriented exchange traded funds (ETFs), specifically SPDR S&P Homebuilders ETF, which holds a number of home retail stocks including Lumber Liquidators (NYSE: LL), Pier One Imports (NYSE: PIR), Whirlpool (MYSE: WHR), and mattress maker Select Comfort (NASDAQ: SCSS).

The ETF’s main competitor is iShares U.S. Home Construction (NYSE: ITB), which has 82 percent of its holdings in consumer cyclicals, including the two major home retailers, Lowes and Home Depot. The primary difference is in this fund’s “top ten” component, which holds eight pure homebuilding stocks in its top ten holdings, which isn’t exactly where you want to be, not with the real money to be made in home remodeling.

So let’s check out XHB. This ETF is loaded up with home consumer stocks. Consumer cyclicals comprise 66.8 percent of the fund’s holdings (and 14.77 percent in basic building materials stocks). Here’s how the fund’s holdings break down:

Home building companies – 29 percent
Household appliances  – 15 percent
Special retail stocks – 29 percent
Building materials – 28 percent

The fund is trading at $30.65, and has ample net assets of $2.01 billion, and is trading at the upper end of its $26-$33 52-week trading range. It leans heavily toward home furnishings in its holdings. They comprise 37 per! cent of t! he entire fund, which sets the table nicely to take full advantage of the big uptick in home remodeling market cited by the Harvard study.

Fee-wise, the fund offers a good deal for investors. It only charges 35 basis points annually, giving investors a low barrier to cross to gain access to the home remodeling boom.

Going all in on home remodeling could lead you to the Home Depots and Lumber Liquidators of the world, and that’s fine. But if you really want to take some risk out of the equation, try home construction ETFs, and XHB, in particular.

Brian O’Connell is an investment analyst at Investing Daily. He has appeared as an expert financial commentator on CNN, NPR, Fox News, Bloomberg, CNBC, C-Span, CBS Radio, and many other media broadcast outlets.

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Celebrities swarming Super Bowl ads

One celebrity is no longer enough for Super Bowl advertisers.

Big Game commercials are becoming a team sport, too. In an era when Super Bowl marketers are paying $4 million for each 30 seconds of broadcast time, the advertisers are working every angle to get viewers to pay attention. It's arguably the world's biggest ad stage, with up to 110 million TV viewers expected — plus many millions more oglers via social media.

Some advertisers believe it's no longer possible to stand out with just one celebrity. Several are now widening the field to two, three, four — or more.

Dannon and Jaguar each have three celebrities in their ads. Anheuser-Busch has four, , including Arnold Schwarzenegger — and a rock band. Speaking of rock bands, U2 will perform its new song Invisible in a fund-raising ad sponsored by Bank of America for (RED) to fight AIDS. Toyota's celebrity, former NFL player turned actor, Terry Crews, is teamed with a car full of Muppets. And on Friday, Hyundai is expected to name two celebrities who will star in one of its Super Bowl ads.

"In most cases, it's just the theory that if one is good, two or three are better," says Noreen Jenney Laffey, president of Celebrity Endorsement Network.

Call it the shotgun approach. The Super Bowl audience is so massive that it includes every conceivable demographic, says Darcy Bouzeos, founder of DLB, a sports and entertainment marketing firm. "Using multiple celebrities helps a brand appeal to a more diverse audience." The strategy also helps create a "wow" factor, says Bouzeos. "The audience may be impressed by the shear star power connected to the brand."

MORE NEWS, HELP JUDGE THE ADS: Get more Super Bowl ad news and join the Ad Meter panel to judge the ads

The exception is that if a celebrity is very big, the star doesn't typically share screen time. For example, red-hot actress Scarlett Johansson's only co-star is the soda-making machine in her SodaStream spot. And soccer hunk David Beckham, isn't ex! pected to have celebrity company when he shows some skin in his Super Bowl ad for H&M undergarments.

These are some of the Super Celebs we know. More are being kept under wraps. Chrysler, which has plucked Clint Eastwood and rapper Eminem for past Super Bowl commercials, is tight-lipped about its 2014 plans.

Perhaps the key to a hit Super Bowl ad with celebrities is for them to play against their typecast roles. Laurence Fishburne, for example, who starred as the oh-so-serious Morpheus in The Matrix films,reprises the role with a comic twist in Kia's Super Bowl spot, unexpectedly breaking into opera. "It's really going to be funny," says Fishburne, by phone from the Hollywood set where he filmed the spot. "You see Morpheus in a whole new light."

But increasingly, celebrities are being teamed with other celebrities for symmetry or, hopefully, bigger laughs. "Sometimes, the creative works better if it's written for people to play off each other," says Laffey. The social-media impact can be bigger, too, when popular celebrity names are involved.

But beware; celebrities can totally tank, too. A study by the research firm Ace Metrix of 2011 Super Bowl spots reported that ads without celebrities performed more than 9% better than ads with them.

"If you can come up with a great non-celebrity spot, it can be just as effective." says Laffey. "It's all about this: Does anyone remember the commercial after Super Bowl Sunday?"

Celebrities run up the cost of Super Bowl spots. Even the lowest B-lister will demand at least $250,000; A-listers typically get $1 million or more, says Laffey.

Hot Performing Companies To Own For 2015

How several S! uper Bowl! advertisers plan to blanket viewers with multiple celebrities:

• Lots of everything. Anheuser-Busch, the game's biggest advertiser, will have one Bud Light spot with four celebrities (all in cameos) and a rock band. Schwarzenegger, Don Cheadle, and Reggie Watts are three of the stars, A-B won't yet reveal the rest. A teaser for the ad that aired in last weekend's games breathlessly boasted: "412 actors ... 58 hidden cameras... five rock stars ... and four celebrities."

"When you introduce a new campaign at the Super Bowl called 'The Perfect Beer for Whatever Happens,' there's an expectation for the unpredictable," says Rob McCarthy, vice president of Bud Light.

• Lots of villains. British car maker Jaguar is plopping three actors who have played notorious villains — Sir Ben Kingsley, Tom Hiddleston and Mark Strong — into a single Super Bowl spot. The use of three "elevates the spot to major motion picture caliber," explains Jeff Curry, brand vice president at Jaguar North America, and using three familiar villains "gives the audience added subjects around whom they can start a conversation."

• Lots of laughs. There's nothing like a prime-time reunion to get folks talking. Three key actors from sitcom Full House — John Stamos, Bob Saget and Dave Coulier — reunite in a spot for Dannon's Oikos yogurt. "These three guys help to personalize that Dannon Oikos can be a delicious part of every day — including game day," says Art D'Elia, vice president of marketing at Dannon.

• Lots of Muppets. Then there's Toyota, which is linking the Muppets with Crews. "It gives our spot immediate recognition," says Toyota Vice President of Marketing Jack Hollis. "We're able to create anticipation through social media and provide fun and excitement! on game ! day — a time when viewers are expecting a memorable ad."

Crews, in a phone interview, says he knows why lots of game ads have celebrities. "You have to give people a reason not to click the remote," he says. "When Kate Upton shows up in an ad, I guarantee you, most guys aren't going to change the channel."

Alas, Upton, who starred in a steamy Mercedes-Benz Super Bowl spot last year, isn't booked for a Super Bowl ad this go-round — that we know of.

Microsoft + Nokia vs. Google + Motorola = Win for Ballmer

Microsoft Corp. (NASDAQ: MSFT) has decided to buy the Nokia Inc. (NYSE: NOK) handset business for $7.17 billion, which is not much for a company with its balance sheet. In 2011, Google Inc. (NASDAQ: GOOG) bought Motorola Mobility for $12.5 billion, another small investment, based on the search company’s balance sheet. Which company got the better deal? Microsoft.

Nokia may be crippled, but it is still, by many measures, the larger of the two handset companies. Motorola’s near-death experience, triggered when its popular RAZR’s sales disappeared, has been a shell of late, and that is all it is today.

Google Android has dominated the smartphone market for years, and the OS is on the handsets of most of the industry’s leaders. In buying Motorola, it got only one Android-based hardware company. And it ran the risk of alienating its other Android hardware partners.

Microsoft has tried to get its Windows mobile OS onto handsets for years. Its success has been very limited. In Nokia, it finds a ready customer base. It could be argued that its 2011 $1 billion deal with Nokia worked in that direction. However, owning a company and having a strategic deal with it are two different things. Like Motorola is a slave to Google, Nokia will become one to Microsoft. There were rumors Microsoft would launch its own Windows 8 based phone this year. Instead, it will buy its own large launch platform.

The deals are very different from another standpoint. Microsoft has been on a push into hardware for years. Its signature product has been the Xbox, which leads its industry ahead of the Sony Corp. (NYSE: SNE) PS products and a bevy of products from Nintendo. It has been less successful (much less) as it has tried to enter the tablet market with the Surface. Microsoft CEO Steve Ballmer, on his way to retirement, obviously has convinced his board to stick with his vision — part of the future of Microsoft is in hardware. Redmond once again admitted as much in its announcement: “Microsoft aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing.”

One part of the announcement that was given a great deal of attention is that Steve Elop, a former Microsoft employee and current Nokia CEO, will remain with the company. That might be a signal he eventually will lead Microsoft. However, most of Nokia will remain intact. Smartphone development will even stay in Finland, according to Ballmer. Not too much should be read into the Elop decision. He is part of an entire team Microsoft has decided to retain.

Hot Energy Stocks For 2014

Nokia has 15% of the global handset business, an awful fall from 39% five years ago. But Motorola has been worse off than that for years. Microsoft may be buying a weak company. Google bought an industry ghost.

Microsoft needs Nokia. The same cannot be said about Google’s deal to buy Motorola. Each got money losing operations. However, no matter how crippled Nokia is, it is Microsoft’s best, and perhaps last, hope to go mobile

The Fresh Market Drops 10%: Just How Bad Were Its Earnings?

The Fresh Market’s (TFM) earnings didn’t look so fresh–and its shares are tumbling today.

REUTERS

The high-end grocery store reported a profit of 32 cents, in line forecasts, and revenue of $354.8 million, above forecasts for $355.8 million. The guidance, however, disappointed, as the Fresh Market now expects earnings of $1.50 to $1.57 per share, below expectations for $1.57.

In a note yesterday, Sterne Agee’s Charles Grom and Renato Basanta argued that the numbers aren’t so bad. They write:

2Q results came in mostly as expected, but investor focus is likely on FY13 EPS guidance, which was reduced by $0.02 at the midpoint. We point out that a large part of the guidance revision is due to higher costs from opening new stores more quickly (a positive, in our view), and believe the essence of TFM’s growth story remains intact. In fact, 2Q traffic accelerated and TFM’s FY13 SSS view was increased. Net, we continue to like TFM, particularly in the context of a choppy retail environment.

UBS analysts Jason DeRise and Mark Carden, disagreed, and cut the stock to Neutral from Buy last night. They write:

TFM outperformed the market by 33% since its Q4 results on March 6. At the time, the market questioned the TFM business model following weak Q4 12 same store sales growth (1.9%) and guided its EPS mid point 8% below consensus. We believe the market underappreciated the cyclical nature of TFM's gourmet grocery sales. Its comp sales began to recover in H1, while it continues to open up new stores at rapid pace (+17% y/y in 13E). But, its new guidance suggests another 6 months until the better EPS growth kicks in, which differed from our expectations.

Investors sided with UBS. Shares of Fresh Market have dropped 10% to $48.80 today. Competitor Kroger (KR) has gained 1.2% to $36.83, while Whole Foods Market (WFM) has risen 1.5% to $52.53 and Safeway (SWY) has advanced 1.2% to $11.40.

Correction: This post originally contained the wrong ticker for Safeway. Its SWY, not SFY.

Schwab, Fidelity Donor-Advised Funds Report Strong Results

Donors are taking advantage of higher market performance to grant appreciated assets, such as stocks and mutual funds, to charitable donor-advised funds.

Both Fidelity and Schwab reported Wednesday that the number of outgoing grants and incoming donations increased significantly in the first half of 2013, with Fidelity in particular experiencing all-time highs for both measures of donor activity.

Donors recommended more than 214,000 grants totaling $919 million, a 33% increase in dollars granted over the same period last year, and contributed $879 million to their charitable accounts, a 7% increase. Additionally, the 1,640 new charitable accounts established represent a 43% increase over the first half of 2012.

The Boston-based company futher noted that grants made to nonprofit organizations of $1 million or more were up 50% over the same period the previous year. The uptick in the number of large outgoing grants helped boost the average grants size for the first half to $4,285, a 10% increase.

5 Best Heal Care Stocks To Own For 2014

“We saw 43% of donations come from securities, and 5% come from non-publically traded stock,” said Kim Gagliardi, senior manager of public relations for Fidelity Charitable. “What sets us apart is our complex assets division. We have lawyers on staff to help business owners and senior executives with company stock make donations without having to first liquidate.”  

Schwab Charitable reported assets under management of $4.8 billion and grants to charities for the fiscal year, ending June 30, totaled more than $600 million, 55% and 12% growth from the previous year, respectively. The organization also doubled its new accounts in fiscal year 2013, underscoring what it says is the “popularity of donor-advised funds as part of holistic financial and charitable planning.”

According to the San Francisco-based firm’s 2013 RIA Benchmarking Study, released last week, 54% of all firms with AUM of $25 million or more currently offer charitable planning services, and of those, 85% indicated that at least some of their clients are using those services. Furthermore, 34% are considering offering charitable planning in the future. For those firms with AUM between $50 million and $100 million, 50% are considering offering charitable planning in the next 12 to 18 months.

"For the entire fiscal year, 62% of the donations were made with appreciated securities," said Kim Laughton, president of Schwab Charitable. "The rest, 38%, came from cash.”

Laughton also noted the firm has a separate department dedicated to assisting with complex assets (usually private stock), including positions in LLCs, private equity and hedge funds.

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Check out Online Donations Surged in 2012 on ThinkAdvisor.

The 2015 Chrysler 200: It's Better, But Is It Great?

Chrysler brand chief Al Gardner unveils the all-new 2015 Chrysler 200 sedan in Detroit. Photo credit: Chrysler.

Chrysler took the wraps off of its all-new 2015 200 sedan in Detroit on Monday. 

The new Chrysler may share a name with its predecessor, but it's a very different car. Working with the resources of its soon-to-be-merger-partner Fiat  (NASDAQOTH: FIATY  ) , Chrysler was able to rethink its midsize sedan from the ground up. The result is an intriguing product.

The new 200's styling has more than a little bit in common with the compact Dodge Dart. That's not a coincidence: Like the Dart, the 200 is built on a platform that started its life with corporate sibling Alfa Romeo, before being stretched and modified for American tastes.

The 200 is packed with intriguing high-tech features, including a sophisticated nine-speed automatic transmission. It has a plush interior filled with soft leather and unusual wood accents, and its optional V6 will give it 295 horsepower -- big power for a mainstream sedan.

The 2015 Chrysler 200's clean lines are a definite improvement on its predecessor's somewhat odd looks. But will it stand out in the brutally competitive midsize sedan segment?

That's one of the questions that the Motley Fool's John Rosevear and Rex Moore ponder in the video below. John and Rex were there as Chrysler revealed its new sedan, and they spent some time up close to (and inside) the new 200. Check it out to hear their thoughts from the show floor in Detroit, and then scroll down to leave a comment and let us know what you think: Did Chrysler hit the mark here?

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Two Very Different Retailers, Two Similar Responses to Downgrades

Two very different retailers–supermarket chain Kroger (KR) and high-end apparel retailer Ralph Lauren (RL)–caught our eye this afternoon for the same reason: analyst downgrades that slammed stock prices.

Kroger

We'll start with grocery giant Kroger, whose shares are down 4.6% at $37.45 at 3:22 p.m. after Credit Suisse analyst Edward Kelly downgraded it to Neutral from Outperform and slashed the price target to $39 from $48.

“While Kroger remains a well managed, high quality company positioned for long-term share gains, the risk/reward seems to be deteriorating,” Kelly cautions.

It isn't just Kroger that Kelly and co. are hesitant to get excited about. The entire supermarket industry comes under fire:

We have become more cautious on the sector given weakening volumes, extremely low inflation, and always intense competition against improved valuations…Kroger seems particularly vulnerable given its strong performance and what now seems to be somewhat aggressive consensus estimates. We recommend investors move to the sidelines for the time being.

That said, Kelly raised estimates of Kroger to $3.08 and $3.35 from $3.02 and $3.33 respectively.

Curious to see what the competition was doing, we found Safeway (SWY) down 0.1% at $31.67, Supervalu (SVU) down 1.4% at $6.25, and Sprouts Farmers Markets (SFM) up 0.9% at $39.60.

Switching gears, Ralph Lauren has taken a pounding this afternoon after Jay Sole of Morgan Stanley assumed coverage of the company and downgraded it to Equal Weight.

Sole notes that the company's predictable EPS growth since the mid-2000s was helped by retail growth, license buybacks and infrastructure investments, but the categories are slowing down. As a result, Sole warns, Ralph Lauren is looking to branch out into uncharted territory:

Part of the new plan calls for growth in areas where [Ralph Lauren] has not had as much success – China and accessories…

We think high-single-digit sales growth, with 110 basis points margin expansion, and 7% share count reduction is the new plan, delivering a 12% 4-year EPS compound annual growth rate, in-line with consensus. In a bull case, where China and accessories sales accelerate, we calculate mid-teens EPS growth. However, if new initiative growth lags, we forecast only mid-single-digit bear case profit expansion.

Shares of Ralph Lauren have dropped 2.5% to $163.86.

Top Insurance Companies To Own For 2014

Jeffrey Gundlach, manager of the top-performing DoubleLine Total Return Bond Fund, is expanding to variable annuities by subadvising a fund modeled after his flagship for Prudential Plc's Jackson National Life Insurance.

DoubleLine received a $450 million mandate from Jackson for the Curian/DoubleLine Total Return Fund, which plans to invest more than half its assets in mortgage-backed securities, according to a statement today from Los Angeles-based DoubleLine. The fund, to be run by DoubleLine Chief Executive Officer Gundlach and President Philip Barach, can also bet on junk bonds, bank loans and credit-default swaps.

“This mandate marks the continuing institutional interest in DoubleLine's investment services and our channel diversification into the variable-annuity space,” Ron Redell, president of DoubleLine Funds Trust, said in the statement.

Top Insurance Companies To Own For 2014: Prudential Financial Inc (PRH)

Prudential Financial, Inc. (Prudential Financial) is a financial services company. Prudential Financial has operations in the United States, Asia, Europe and Latin America. Through its subsidiaries and affiliates, the Company offers an array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. It offers these products and services to individual and institutional customers through proprietary and third party distribution networks. Prudential Financial has two businesses: the Financial Services Businesses and the Closed Block Business. The Financial Services Businesses consists of its United States Retirement Solutions and Investment Management division, United States Individual Life and Group Insurance division, and International Insurance division, as well as its Corporate and Other operations. The Closed Block Business consists of the assets and related liabilities of the Closed Block described below and certain related assets and liabilities. On January 1, 2012, it merged with Gibraltar Life Insurance Company, Ltd (Gibraltar Life).

On February 1, 2011, Prudential Financial completed the acquisition from American International Group, Inc. (AIG), of AIG Star Life Insurance Co., Ltd. (Star), AIG Edison Life Insurance Company (Edison), and certain other AIG subsidiaries. In July 2011, it sold its global commodities business to Jefferies Group, Inc. In November 2011, it acquired an office building located in downtown Chicago's Central Loop. On December 06, 2011, the Company announced the sale of Prudential Real Estate and Relocation Services (PRERS), the Company's real estate brokerage and relocation services unit, to Brookfield Residential Property Services.

Financial Services Businesses

The Financial Services Businesses consist of three operating divisions, which together encompass six segments, and its Corporate and Other operations. The United States Retirement Solutions an! d Investment Management division consists of its Individual Annuities, Retirement and Asset Management segments. The United States Individual Life and Group Insurance division consists of its Individual Life and Group Insurance segments. The International Insurance division consists of its International Insurance segment. Its Corporate and Other operations include corporate items and initiatives that are not allocated to business segments, as well as businesses that have been or will be divested.

The Individual Annuities segment manufactures and distributes individual variable and fixed annuity products, primarily to the United States market. The Company�� annuity products are distributed through a diverse group of independent financial planners, wirehouses, banks, and insurance agents, including Prudential Agents and the agency distribution force of The Allstate Corporation (Allstate). It offers variable annuities that provide its customers with tax-deferred asset accumulation together with a base death benefit and a suite of optional guaranteed death and living benefits. Its variable annuity investment options provide the customers with the opportunity to invest in proprietary and non-proprietary mutual funds, frequently under asset allocation programs, and fixed-rate accounts. The Company�� prudential agents distribute variable annuities with proprietary and non-proprietary investment options, as well as fixed annuities. Its individual annuity products are also offered through a range of third party channels, including independent brokers, wirehouses, banks, and Allstate�� proprietary distribution force.

The Company�� retirement segment, which is referred as Prudential Retirement, provides retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. Its full service business provides recordkeeping, plan administration, actuarial advisory services, tailored participant education and communicati! on servic! es, trustee services and institutional and retail investments. It services defined contribution, defined benefit and non-qualified plans. For participants leaving the clients��plans, it provides a range of rollover products through its broker-dealer, Prudential Investment Management Services LLC, its bank, Prudential Bank & Trust, FSB (PB&T), and certain of its insurance companies. Its institutional investment products business offers guaranteed investment contracts (GICs), funding agreements, institutional and retail notes, structured settlement annuities, and group annuities, for defined contribution plans, defined benefit plans, non-qualified plans, and individuals.

The Company�� full service business offers plan sponsors and their participants a range of products and services to assist in the delivery and administration of defined contribution, defined benefit, and non-qualified plans, including recordkeeping and administrative services, comprehensive investment offerings and consulting services to assist plan sponsors in managing fiduciary obligations. As part of its investment products, it offers a range of general and separate account stable value products and other fee-based separate accounts, as well as retail mutual funds and institutional funds advised by affiliated and non-affiliated investment managers.

It also offers fee-based separate account products, through which customer funds are held in a separate account, retail mutual funds, institutional funds, or a client-owned trust. These products generally pass all of the investment results to the customer. In addition, it offers guaranteed minimum withdrawal benefits associated with certain defined contribution accounts, and hedge certain of the related risks utilizing externally purchased hedging instruments. It also offers a range of rollover solutions, including individual retirement accounts, mutual funds, and guaranteed income products. Its rollover products and services are marketed to participants who ter! minate or! retire from organizations that are clients of its retirement plan recordkeeping services.

The Asset Management segment provides an array of investment management and advisory services by means of institutional portfolio management, mutual funds, asset securitization activity and other structured products, and strategic investments. These products and services are provided to the public and private marketplace, as well as its United States Individual Life and Group Insurance division, International Insurance division and Individual Annuities and Retirement segments, as well as the Closed Block Business. Its products and services include Public Fixed Income Asset Management, Public Equity Asset Management, Private Fixed Income Asset Management, Commercial Mortgage Origination and Servicing, Real Estate Asset Management, Strategic Investments, and Mutual Funds and Other Retail Services.

The public fixed income organization manages fixed income portfolios for United States and international, institutional and retail clients, as well as for its general account. Its products include traditional broad market fixed income strategies and single-sector strategies. It manages traditional asset-liability strategies, as well as customized asset-liability strategies. It also manages hedge strategies, as well as collateralized loan obligations. It also serves as a non-custodial securities lending agent. The public equity organization provides discretionary and non-discretionary asset management services to a range of clients. It manages an array of publicly-traded equity asset classes using various investment styles. The public equity organization is consisted of two wholly owned registered investment advisors, Jennison Associates LLC and Quantitative Management Associates LLC.

The private fixed income organization provides asset management services by investing in private placement investment grade debt, private placement below investment grade debt, and mezzanine debt securi! ties. The! se investment capabilities are utilized by its general account and institutional clients through direct advisory accounts, insurance company separate accounts, and private fund structures. The commercial mortgage operations provide mortgage origination, asset management and servicing for its general account, institutional clients, and government-sponsored entities, such as Fannie Mae, the Federal Housing Administration, and Freddie Mac. It also originated shorter-term interim loans for spread lending that are collateralized by assets generally under renovation or lease up

The global real estate organization provides asset management services for single-client and commingled private and public real estate portfolios and manufactures and manages a range of real estate investment vehicles investing in private and public real estate, primarily for institutional clients through 22 offices worldwide. Its domestic and international real estate investment vehicles range from fully diversified open-end funds to specialized closed-end funds that invest in specific types of properties or specific geographic regions or follow other specific investment strategies. The Company makes strategic investments to support the creation and management of funds offered to third-party investors in private and public real estate, fixed income and public equities asset classes. Other strategic investments are made with the intention to sell or syndicate to investors, including its general account, or for placement in funds and structured products that it offers and manages. It also makes loans to, and guarantees obligations of, the Company�� managed funds that are secured by equity commitments from investors or assets of the funds.

The Company manufactures, distributes and services investment management products primarily utilizing asset management expertise in the United States retail market. Its products are designed to be sold primarily by financial professionals, including both Prudential Agents an! d third p! arty advisors. It offers a family of retail investment products consisting of 41 mutual funds as of December 31, 2011. These products cover an array of investment styles and objectives designed to retain assets of individuals with varying objectives and to accommodate investors��changing financial needs. In addition, it offers banks and other financial services organizations a wealth management platform, which permits, such banks and organizations to provide their retail clients with services, including asset allocation, investment manager research and access, clearing, trading services, and performance reporting. The U.S. Individual Life and Group Insurance division conducts its business through the Individual Life and Group Insurance segments. Its Individual Life segment manufactures and distributes individual variable life, term life and universal life insurance products primarily to the U.S. mass middle, mass affluent and affluent markets. During 2011, its primary insurance products are variable life, term life and universal life and represent 41%, 49% and 9%, respectively, of its face amount of individual life insurance in force, net of reinsurance.

The Group Insurance segment manufactures and distributes a range of group life, long-term and short-term group disability, long-term care, and group corporate-, bank- and trust-owned life insurance in the United States primarily to institutional clients for use in connection with employee and membership benefits plans. Group Insurance also sells accidental death and dismemberment, preferred provider and indemnity dental and other ancillary coverages, and provides plan administrative services in connection with its insurance coverages. It offers group life insurance products, including employer-pay (basic) and employee-pay (voluntary) coverages. This portfolio of products includes basic and supplemental term life insurance for employees, optional term life insurance for dependents of employees and group universal life insurance. It also of! fers grou! p variable universal life insurance, basic and voluntary accidental death and dismemberment insurance and business travel accident insurance. It also offers a living benefits option that allows insureds that are diagnosed with a terminal illness to receive a portion of their life insurance benefit upon diagnosis, in advance of death, to use as needed.

The Company�� International Insurance segment manufactures and distributes individual life insurance, retirement and related products, including certain health products with fixed benefits. It provides these products to the broad middle income market across Japan through multiple distribution channels, including Life Advisors, who are associated with its Gibraltar Life operations. It also provides similar products to the mass affluent and affluent markets in Japan, Korea and other countries outside the United States through its Life Planner operations. It also offers variable life products in Japan, Korea, Taiwan and Poland and interest-sensitive life products in all countries with the exception of Brazil and Mexico. In most of its operations, it also offers certain health products with fixed benefits, some of which include a high savings element. In addition, similar products are offered to the middle income market across Japan through Life Advisors, the distribution channel of the Company�� Gibraltar Life Insurance Company, Ltd. (Gibraltar Life) operation.

The Company�� international insurance operations offer various traditional whole life, term life, endowment policies, which provide for payment on the earlier of death or maturity and retirement income life insurance products that combine an insurance protection element similar to that of term life policies with a retirement income feature. It also offers variable life products in Japan, Korea, Taiwan and Poland and interest-sensitive life products in all countries. It also offers certain health products with fixed benefits, as well as annuity products, which are primari! ly repres! ented by United States and Australian dollar-denominated fixed annuities in its Gibraltar Life operations.

Closed Block Business

The Closed Block Business includes liabilities for its individual in participating products, together with assets that are used for the payment of benefits and policyholder dividends, expenses and taxes with respect to these products. The Closed Block is 90% reinsured, including 7% by a wholly owned subsidiary of Prudential Financial. During 2011, the Company also reinsured 90% of the short-term risks associated with the Closed Block policies to a wholly owned subsidiary of Prudential Financial.

Top Insurance Companies To Own For 2014: Axa SA (AXA)

Axa SA (AXA) is a France-based holding company engaged in the business of financial protection, insurance and asset management. It operates in three segments: Life & Savings, Property & Casualty Insurance and Asset Management. The Company�� business involves the sale of savings policies, retirement accounts, estate planning services, health insurance, car and home insurance, insurance against property damage and civil liability, among others, for individual and business clients. AXA operates through subsidiaries in Europe, North America, and the Asia-Pacific Region alsoin the Middle East, Africa, and Latin America. In November 2012, the Company acquired HSBC Bank Plc P&C�� operations in Hong Kong and Singapore and in October 2013, it sold MONY Life Insurance Co to Protective Life Insurance Company. On September 30, 2013, AXA SA's private equity arm completed a spin out from its parent company, and was named Ardian. In October 2013, it created Axa Lab and Silicon Valley.

Top 10 Undervalued Companies To Invest In 2014: Sun Life Financial Inc.(SLF)

Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Monica Gerson]

  Sun Life Financial (NYSE: SLF) shares gained 2.47% to create a new 52-week high of $34.80 on Q3 results. Sun Life reported its Q3 operating net income from continuing operations of $422 million.

Top Insurance Companies To Own For 2014: Fairfax Financial Holdings Ltd (FRFHF)

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

• [By Dan Caplinger]

  That business model has been so successful that other, smaller insurance companies have emulated it. For instance, Fairfax Financial (NASDAQOTH: FRFHF  ) and Markel (NYSE: MKL  ) have used the same investing model to take advantage of their respective core insurance businesses. Both Fairfax and Markel have had substantial success, showing the power of using temporarily available premium reserves to make higher-return investments.

• [By Tim Brugger]

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

Top Insurance Companies To Own For 2014: Aon Corporation(AON)

Aon Corporation provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services primarily in the United States, the Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia Pacific. The company?s Risk Solutions segment offers retail brokerage products and services, including affinity products, general underwriting management services, placement services, and captive management services; and advisory services to technology, financial services, agribusiness, aviation, construction, health care, and energy industries, as well as facilitates various risk management solutions for property liability, general liability, professional liability, directors' and officers' liability, workers' compensation, and various healthcare products. This segment also provides risk consulting services comprising captive management; eSolutions products that enable clients to manage risks, policies, claims, and safet y concerns through an integrated technology platform; reinsurance brokerage services, such as actuarial, enterprise risk management, catastrophe management, and rating agency advisory services; property and casualty reinsurance; and specialty lines, which include professional liability, medical malpractice, accident, life, and health, as well as capital management transaction and advisory services. Its HR Solutions segment offers human capital services in the areas of health and benefits, retirement, compensation, and strategic human capital; and benefits administration and human resource business process outsourcing services. The company was founded in 1919 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Holly LaFon]

  Company Dell Inc. (DELL) Chesapeake Energy (CHK) DirecTV (DTV) Loews (L) Walt Disney (DIS) Aon Plc (AON) The Travelers Companies (TRV) Level 3 Communications (LVLT) FedEx (FDX) Bank of New York Mellon (BK)
  Learn more about Mason and his views on the present economy in his second-quarter letter here. See his portfolio here.

• [By Rich Duprey]

  Risk manager�Aon� (NYSE: AON  ) announced yesterday its third-quarter dividend of $0.175 per share, the same rate it paid last quarter after raising the payout 11%, from $0.1575 per share.

• [By Keith Speights]

  AON Hewitt, the human resources business unit of AON (NYSE: AON  ) , successfully enrolled more than 100,000 employees across the U.S. in health insurance plans last fall through its Corporate Health Exchange product. The company's survey of enrollees found that nearly 80% "felt confident they chose the health plan that offered the best value for them and their family." 93% liked being able to choose from multiple insurance carriers.

• [By WWW.GURUFOCUS.COM]

  For the YTD, Aon (AON), the world's largest insurance broker and a leading benefits management firm, was among the Fund's largest contributors as the company's lower tax rate and increasing cash flow helped drive a 35% return. Higher interest rates will increase fiduciary income and help close the gap in the underfunded pension. Although nascent, Aon's healthcare exchange for corporate employees is gaining critical mass, most recently adding Walgreen Co in the third quarter. We applaud Greg Case and his team for their customer- focused, shareholder-oriented leadership.

Top Insurance Companies To Own For 2014: Berkshire Hathaway Inc (BRKB)

Berkshire Hathaway Inc. (Berkshire), incorporated on June 16, 1998, is a holding company owning subsidiaries engaged in a number of diverse business activities. The Company is engaged in the insurance businesses conducted on both a primary basis and a reinsurance basis, a freight rail transportation business and a group of utility, and energy generation and distribution businesses. Berkshire also owns and operates a number of other businesses engaged in a variety of activities. In October 2012, HomeServices acquired a 66.7% interest in the residential real estate brokerage franchise network in the United States. In May 2013, Berkshire acquired the remaining 20% stake in IMC International Metalworking Companies BV.

Insurance and Reinsurance Businesses

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

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

Property/Casualty Reinsurance

General Re�� property/casualty reinsurance business in North America is conducted through GRC. Property/casualty operations in North America are also conducted through 16 branch offices in the United States and Canada. Reinsurance activities are marketed directly to clients without involving a broker or intermediary. General Re�� property/casualty business in North America also includes specialty insurers (primarily the General Star and Genesis companies). These specialty insurers underwrite primarily liability and workers��compensation coverages on an excess and surplus basis and excess insurance for self-insured programs. General Re�� international property/casualty reinsurance business operations are conducted through internationally-based subsidiaries on a direct basis (through General Reinsurance AG, as well as several other General Re subsidiaries in 23 countries) and through brokers (primarily through Faraday, which owns the managing agent of Syndicate 435 at Lloyd�� of London and provides capacity and participates in 100% of the results of Syndicate 435).

Life/Health Reinsurance

General Re�� North American and international life, health, long-term care and disability reinsurance coverages are written on an individual and group basis. Most! of this ! business is written on a proportional treaty basis, with the exception of the United States group health and disability business, which is predominately written on an excess treaty basis. Lesser amounts of life and disability business are written on a facultative basis. The life/health business is marketed on a direct basis.

The Berkshire Hathaway Reinsurance Group (BHRG) operates from offices located in Stamford, Connecticut. Business activities are conducted through a group of subsidiary companies, led by National Indemnity Company (NICO) and Columbia Insurance Company (Columbia). BHRG provides principally excess and quota-share reinsurance to other property and casualty insurers and reinsurers. BHRG�� underwriting activities also include life reinsurance and life annuity business written through Berkshire Hathaway Life Insurance Company of Nebraska and financial guaranty insurance written through Berkshire Hathaway Assurance Corporation.

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

The Berkshire Hathaway Primary Group is a collection of primary insurance operations that provide a range of insurance coverages to insureds located principally in the United States. NICO and certain affiliates underw! rite moto! r vehicle and general liability insurance to commercial enterprises on both an admitted and excess and surplus basis. This business is written nationwide primarily through insurance agents and brokers and is based in Omaha, Nebraska. U.S. Investment Corporation (USIC), through its four subsidiaries led by United States Liability Insurance Company, is a specialty insurer that underwrites commercial, professional and personal lines of insurance on an admitted and excess and surplus basis. Policies are marketed in all 50 states and the District of Columbia through wholesale and retail insurance agents. USIC companies underwrite and market 110 distinct specialty property and casualty insurance products. Medical Protective Corporation (MedPro) is based in Fort Wayne, Indiana. MedPro offers products and solutions through its subsidiaries, The Medical Protective Company and Princeton Insurance Company and is a primary healthcare malpractice insurance coverage and patient safety solutions to physicians, dentists, other healthcare providers and healthcare facilities. Other insurance operations include the Berkshire Hathaway Homestate Companies (BHHC), a group of six insurance companies that primarily offers standalone workers��compensation, commercial auto and commercial property coverages.

Railroad Business

Through Burlington Northern Santa Fe, LLC (BNSF) Railway, BNSF operates a railroad network in North America with approximately BNSF operates a railroad network in North America with approximately 32,500 route miles of track (excluding multiple main tracks, yard tracks and sidings) in 28 states and two Canadian provinces as of December 31, 2012. BNSF owns approximately 23,000 route miles, including easements, and operates on approximately 9,500 route miles of trackage rights that permit BNSF to operate its trains with its crews over other railroads��tracks. As of December 31, 2012, the total BNSF Railway system, including single and multiple main tracks, yard tracks and sidings,! consiste! d of approximately 50,500 operated miles of track, all of which are owned by or held under easement by BNSF except for approximately 10,500 miles operated under trackage rights.

BNSF is based in Fort Worth, Texas, and through BNSF Railway Company operates railroad systems in North America. In serving the Midwest, Pacific Northwest, Western, Southwestern and Southeastern regions and ports of the country, BNSF transports a range of products and commodities derived from manufacturing, agricultural and natural resource industries. Over half of the freight revenues of BNSF are covered by contractual agreements of varying durations. BNSF�� primary routes, including trackage rights, allow it to access major cities and ports in the western and southern United States, as well as parts of Canada and Mexico.

Utilities and Energy Businesses

MidAmerican�� businesses are managed as separate operating units. MidAmerican�� domestic regulated energy interests are consisted of two regulated utility companies serving more than three million retail customers, two interstate natural gas pipeline companies with approximately 16,600 miles of pipeline and a design capacity of approximately 7.7 billion cubic feet of natural gas per day and a 50% interest in electric transmission businesses. Its Great Britain electricity distribution subsidiaries serve about 3.9 million electricity end-users. In addition, MidAmerican�� interests include a diversified portfolio of domestic independent power projects, a hydroelectric facility in the Philippines, the residential real estate brokerage firm in the United States and the residential real estate brokerage franchise network in the United States.

PacifiCorp is a regulated electric utility company, serving regulated retail electric customers in portions of Utah, Oregon, Wyoming, Washington, Idaho and California. The combined service territory�� diverse regional economy ranges from rural, agricultural and mining areas to urban,! manufact! uring and government service centers. As a vertically integrated electric utility, PacifiCorp owns approximately 10,600 net megawatts (MW) of generation capacity.

MidAmerican Energy Company (MEC) is a regulated electric and natural gas utility company, serving regulated retail electric and natural gas customers primarily in Iowa and also in portions of Illinois, South Dakota and Nebraska. MEC has a diverse customer base consisting of urban and rural residential customers and a range of commercial and industrial customers. In addition to retail sales and natural gas transportation, MEC sells regulated electricity principally to markets operated by regional transmission organizations and regulated natural gas to other utilities and market participants on a wholesale basis and sells non-regulated electricity and natural gas services in deregulated markets. As a vertically integrated electric and gas utility, MEC owns approximately 7,400 net megawatts of generation capacity.

The natural gas pipelines consist of Northern Natural Gas Company (Northern Natural) and Kern River Gas Transmission Company (Kern River). Northern Natural is based in Nebraska and owns interstate natural gas pipeline system in the United States reaching from southern Texas to Michigan�� Upper Peninsula. Northern Natural�� pipeline system consists of approximately 14,900 miles of natural gas pipelines. Northern Natural also operates three underground natural gas storage facilities and two liquefied natural gas storage peaking units.

Kern River is based in Utah and owns an interstate natural gas pipeline system that consists of approximately 1,700 miles and extends from supply areas in the Rocky Mountains to consuming markets in Utah, Nevada and California. Kern River transports natural gas for electric utilities and natural gas distribution utilities, major oil and natural gas companies or affiliates of such companies, electricity generating companies, energy marketing and trading companies, a! nd financ! ial institutions. The Great Britain utilities consist of Northern Powergrid (Northeast) Limited (Northern Powergrid (Northeast)) and Northern Powergrid (Yorkshire) plc (Northern Powergrid (Yorkshire)), which own a substantial Great Britain electricity distribution network that delivers electricity to end-users in northeast England in an area covering approximately 10,000 square miles. The distribution companies primarily charge supply companies regulated tariffs for the use of electrical infrastructure. MidAmerican also owns HomeServices of America, Inc. (HomeServices), a full-service residential real estate brokerage firm in the United States. HomeServices offers integrated real estate services, including mortgage originations and mortgage banking primarily through joint ventures, title and closing services, property and casualty insurance, home warranties, relocation services and other home-related services. It operates under 27 residential real estate brand names with over 16,000 sales agents and in nearly 375 brokerage offices in 21 states.

Manufacturing, Service and Retailing Businesses

Berkshire�� numerous and diverse manufacturing, service and retailing businesses. Marmon Holdings, Inc. (Marmon) consists of approximately 140 manufacturing and service businesses that operate independently within 11 diverse business sectors. These sectors are distribution services, electrical and plumbing products, industrial products, crane services, engineered wire and cable, transportation services and engineered products, food service equipment, highway technologies, retail home improvement products, retail store fixtures, and water treatment.

Distribution Services supplies specialty metal pipe and tubing, bar and sheet products to markets, including construction, industrial, aerospace and many others. Electrical and Plumbing Products is engaged in the distribution, supplying electrical building wire primarily for residential and commercial construction, and copper tube for th! e plumbin! g, heating, ventilation, and air conditioning (HVAC), refrigeration and industrial markets, through the wholesale channel. Industrial Products consists of metal fasteners and fastener coatings for the construction, industrial and other markets, gloves for industrial markets, portable lighting equipment for mining and safety markets, overhead electrification equipment for mass transit systems, custom-machined aluminum and brass forgings for the construction, energy, recreation and other industries, brass fittings and valves for commercial and industrial applications, and drawn aluminum tubing and extruded aluminum shapes for the construction, automotive, appliance, medical and other markets.

Crane Services is engaged in providing the leasing and operation of mobile cranes primarily to the energy, mining and petrochemical markets. Engineered Wire and Cable is engaged in supplying electrical and electronic wire and cable for energy related markets and other industries. Transportation Services and Engineered Products includes manufacturing, leasing and maintenance of railroad tank cars, leasing of intermodal tank containers, in-plant rail services, manufacturing of bi-modal railcar movers, wheel, axle and gear sets for light rail transit and gear products for locomotives, manufacturing of steel tank heads, and services, equipment and technology for processing and distributing sulfur.

Food Service Equipment is engaged in supplying commercial food preparation equipment for restaurants and shopping carts for retail stores. Highway Technologies primarily serve the heavy-duty highway transportation industry with trailers, fifth wheel coupling devices and undercarriage products, such as brake parts and suspension systems, and also serving the light vehicle aftermarket with clutches and related products. Retail Home Improvement Products is engaged in supplying electrical and plumbing products through the home center channel. Retail Store Fixtures provides shelving systems, other merchandising di! splays an! d related services for retail stores, as well as work and garden gloves sold at retail. Water Treatment includes residential water softening, purification and refrigeration filtration systems, treatment systems for industrial markets including power generation, oil and gas, chemical, and pulp and paper, gear drives for irrigation systems and cooling towers, and air-cooled heat exchangers.

McLane Company, Inc. (McLane) provides wholesale distribution and logistics services in all 50 states and internationally in Brazil to customers that include convenience stores, discount retailers, wholesale clubs, drug stores, military bases, quick service restaurants and casual dining restaurants. Operations include grocery distribution, foodservice distribution, beverage distribution, international logistics and software development. McLane�� foodservice distribution unit, based in Carrollton, Texas, focuses on serving the quick service restaurant industry. Operations are conducted through 18 facilities in 16 states. The foodservice distribution unit services more than 19,000 chain restaurants nationwide.

Other Manufacturing, Other Service and Retailing Businesses

Berkshire�� apparel manufacturing businesses include manufacturers of a range of clothing and footwear. Businesses engaged in the manufacture and distribution of clothing products include Fruit of the Loom, Inc. (Fruit), Russell Brands, LLC (Russell), Vanity Fair Brands, LP (VFB), Garan and Fechheimer Brothers. Berkshire�� footwear businesses include H.H. Brown Shoe Group, Justin Brands and Brooks Sports. Fruit, Russell and VFB (together FOL) is primarily a vertically integrated manufacturer and distributor of basic apparel, underwear and athletic apparel and products. Products, under the Fruit of the Loom and JERZEES labels are primarily sold in the mass merchandise and wholesale markets. In the VFB product line, Vassarette, Bestform and Curvation are sold in the mass merchandise market, while Vanity Fair and! Lily of ! France products are sold in the mid-tier chains and department stores. FOL also markets and sells athletic uniforms, apparel, sports equipment and balls to team dealers; college licensed tee shirts and fleecewear to college bookstores and mid-tier merchants; and athletic apparel, sports equipment and balls to sporting goods retailers under the Russell Athletic and Spalding brands. Additionally, Spalding markets and sells balls in the mass merchandise market and dollar store channels.

Garan designs, manufactures, imports and sells apparel primarily for children, including boys, girls, toddlers and infants. Products are sold under its own trademark Garanimals and private labels of its customers. Garan also licenses its registered trademark Garanimals to independent third parties. Garan conducts its business through operating subsidiaries located in the United States, Central America and Asia. Fechheimer Brothers manufactures, distributes and sells uniforms, principally for the public service and safety markets, including police, fire, postal and military markets. Fechheimer Brothers is based in Cincinnati, Ohio.

Justin Brands and H.H. Brown Shoe Group manufacture and distribute work, rugged outdoor and casual shoes and western-style footwear under a number of brand names, including Justin, Tony Lama, Nocona, Chippewa, Carolina, Sofft, Double-H Boots, Eurosoft, and Softspots. Acme Building Brands (Acme) manufactures and distributes clay bricks (Acme Brick and Jenkins Brick), concrete block (Featherlite) and cut limestone (Texas Quarries). In addition, Acme distributes a range of other building products of other manufacturers, including glass block, floor and wall tile, wood flooring and other masonry products. Acme also sells ceramic floor and wall tile, as well as marble, granite and other stones through its subsidiary, American Tile and Stone. Benjamin Moore & Co. (Benjamin Moore) is a formulator, manufacturer and retailer of a range of architectural coatings, available principa! lly in th! e United States and Canada. Products include water-thinnable and solvent-thinnable general purpose coatings (paints, stains and clear finishes) for use by the general public, contractors and industrial and commercial users. Products are marketed under various registered brand names, including Regal, Super Spec, MoorGard, Aura, Nattura, ben, Coronado, Insl-x and Lenmar.

Johns Manville (JM) is a manufacturer and marketer of products for building insulation, mechanical insulation, commercial roofing and roof insulation, as well as fibers and nonwovens for commercial, industrial and residential applications. JM serves markets that include aerospace, automotive and transportation, air handling, appliance, HVAC, pipe insulation, filtration, waterproofing, building, flooring, interiors and wind energy. The Shaw Industries Group, Inc. (Shaw) is a carpet manufacturer based on both revenue and volume of production. Shaw designs and manufactures over 3,000 styles of tufted carpet, tufted and woven rugs, laminate and wood flooring for residential and commercial use under about 30 brand and trade names and under certain private labels. Shaw also provides installation services and sells ceramic and vinyl tile along with sheet vinyl. Forest River, Inc. (Forest River) is a manufacturer of recreational vehicles, utility, cargo and office trailers, buses and pontoon boats. Albecca Inc. (Albecca) does business primarily under the Larson-Juhl name. Albecca designs, manufactures and distributes a range of products, including wood and metal molding, matboard, foamboard, glass, equipment and other framing supplies in the United States, Canada and 15 countries outside of North America.

FlightSafety International Inc. (FSI) is engaged in professional aviation training services to individuals, businesses (including certain commercial aviation companies) and the United States. Government. FSI primarily provides training to pilots, aircraft maintenance technicians, flight attendants and dispatchers who op! erate and! support a range of business, commercial and military aircraft. NetJets Inc. (NJ) is a provider of fractional ownership programs for general aviation aircraft. TTI, Inc. (TTI) is a specialty distributor of passive, interconnect, electromechanical and discrete components used by customers in the manufacturing and assembling of electronic products. TTI�� customer base includes original equipment manufacturers, electronic manufacturing services, original design manufacturers, military and commercial customers, as well as design and system engineers. TTI services a range of industries, including telecommunications, medical devices, computers and office equipment, aerospace, automotive and consumer electronics.

Finance and Financial Products

The Company�� finance and financial products businesses include manufactured housing and finance (Clayton Homes), transportation equipment leasing (XTRA), furniture leasing (CORT), as well as various miscellaneous financing activities. Clayton Homes, Inc. (Clayton) is a vertically integrated manufactured housing company. As of December 31, 2012, Clayton operated 34 manufacturing plants in 12 states. Clayton�� homes are marketed in 48 states through a network of 1,441 retailers, including 323 company-owned home centers. XTRA is a transportation equipment lessor operating under the XTRA Lease brand name. XTRA manages a diverse fleet of approximately 82,000 units located at 58 facilities throughout the United States and two facilities in Canada. The fleet includes over-the-road and storage trailers, chassis, temperature controlled vans and flatbed trailers. CORT Business Services Corporation is a provider of rental relocation services, including rental furniture, accessories and related services in the rent-to-rent segment of the furniture rental industry.

Advisors' Opinion:

• [By Tiernan Ray]

  Berkshire Hathaway�(BRKB) this afternoon reported Q2 operating earnings per Class-A share of $2,384, up 6% from the year-earlier period, and topping a consensus for $2,163 according to FactSet.

  The company’s book value per share rose 7.6% from the beginning of the year to $122,900.

  The company saw a $322 million gain on investments, better than the prior-year’s $81 million gain, and a $300 million gain on derivatives, versus a year-earlier $693 million loss.

  Total revenue for the company from all its holdings was up 16% at $44.69 billion.

  Total assets rose to $446.56 billion from $427.45 billion a year earlier.

  The full federal filing for the quarter is available on the company’s Web site.

  In the filing,�Warren Buffett and his team outlined gains in the underwriting business, railroads, and energy, with a “mixed” bag of results for manufacturing, services and retail:

  Our insurance businesses generated significant underwriting gains in the first six months of 2013 and 2012. Our railroad and utilities and energy businesses continued to generate significant earnings in 2013. Earnings from our manufacturing, service and retailing businesses in 2013 were mixed, but as indicated in the table above earnings from these businesses increased about 4.8% during the second quarter and 7.4% during the first six months [...] Premiums written [by Geico] in the second quarter and first six months of 2013 were $4,548 million and $9,389 million, respectively, representing increases of 11.7% and 11.5%, respectively, compared to the corresponding 2012 periods. Premiums earned in the second quarter and first six months of 2013 increased $465 million (11.3%) and $848 million (10.4%), respectively, compared to premiums earned in the corresponding 2012 periods. The growth in premiums earned for voluntary auto was 10.4%, reflecting an increase in policies-in-force of 8.2% over the past year, and to a lesser d

• [By WALLSTCHEATSHEET.COM]

  Berkshire Hathaway is an investment manager with a variety of investments in a number of industries. It is being reported that the company made significant gains from investments during the Financial Crisis. The stock has been flying higher in recent years and is now consolidating near all time high prices. Over the last four quarters, earnings and revenues have been rising. Relative to its peers and sector, Berkshire Hathaway �has been an average year-to-date performer. Look for Berkshire Hathaway to OUTPERFORM.

Top Insurance Companies To Own For 2014: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

• [By Sally Jones]

  
  Genworth Financial Inc. (GNW): Sold Out

  Up 142% over 12 months, Genworth Financial has a market cap of $6.26 billion and trades with a P/E of 14.10. The current share price is $12.68.

• [By David Hanson and Matt Koppenheffer]

  The broader stock market has been on a great run so far in 2013, but a few stocks are soaring past the market.�On its road to recovery, shares of Genworth Financial (NYSE: GNW  ) are up over 40% year to date. However, with shares are still trading at a huge discount to book value, is there more room to run?

• [By Ben Levisohn]

  Its big day has also boosted other insurers. Radian Group (RDN) has risen 7.2% to $14.39, while Old Republic International (ORI) has advanced 2.1% to $15.24, Genworth Financial (GNW) is up 3.6% at $13.41 and MBIA Inc. (MBI) has jumped 4.3% to $10.76.

Top Insurance Companies To Own For 2014: Fairfax Financial Holdings Ltd (FRFHF.PK)

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

Advisors' Opinion:

• [By Alex Jordon]

  There's talk that Prem Watsa, head of Fairfax Financial Holdings (FRFHF.PK), could possibly be involved in a privatization bid for the company. Consider:

• [By Infinity Group]

  With 515 million shares outstanding, this equates to 33% of all shares being shorted. It should also be noted that Prem Watsa's Fairfax Financial Holdings (FRFHF.PK) is holding 51.8 million BlackBerry shares. Prem Watsa stated at the annual FairFax shareholders meeting that Fairfax is holding a long position with BlackBerry and anticipates shareholder value increasing over the next 2-3 years. The cost basis for FairFax financial holdings is approximately $17 per BlackBerry share.