Morning Movers: Energizer Surges on Planned Split; Panera Slides on Sales Disappointment

Stocks have dipped slightly this morning after U.S. gross-domestic product barely rose during the first quarter. The market, however, is also waiting to hear from the Federal Reserve this afternoon.

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S&P 500 futures have dipped 0.1%, while Dow Jones Industrial Average futures are off just 2 points.Nasdaq Composite futures have fallen 0.3%.

U.S. GDP rose just 0.1%, well below forecasts for 1.1%. Blame the weather.

Energizer Holdings (ENR) has jumped 18% to $115 after it said it planned to split itself in two.

Pepco (POM) has surged 18% to $26.87 after it agreed to be purchased by Exelon (EXC) for $27.25 a share in an all-cash deal. Exelon has dropped 2.4% to $35.31.

Panera Bread (PNRA) has dropped 5.5% to $154.23 after beating earnings forecasts, but reporting tepid same-store-sales growth and offering disappointing guidance.

GlaxoSmithKline (GSK) has fallen 1.8% to $55.38 after reporting sluggish sales.

 

Pfizer Proposes $100 Billion Takeover of AstraZeneca (PFE, AZN)

On Monday, bio-pharmaceutical company Pfizer (PFE) announced its proposed takeover of AstraZeneca (AZN).

Hot Information Technology Stocks To Buy For 2015

Pfizer most recently proposed to AstraZeneca a $100 billion takeover, and was rebuffed. Pfizer had proposed its takeover to AstraZeneca in January, and once again contacted its British rival on Saturday; Pfizer’s offer included buying AstraZeneca at 47 pounds per share, with 70% paid in shares and only 30% in cash.

AstraZeneca, however, stated that Pfizer’s offer greatly undervalued the company. Furthermore, AstraZeneca urged its investors to remain confident in the company’s independent strategy.

Pfizer Chief Executive Ian Read stated “Society wants products faster, they want more products and they want value. Industry is responding to society’s request for increased efficiencies and productivity.”

Shares of Pfizer rose 4.2% during the session; YTD the stock is up 0.95%. AstraZeneca rallied 12.16%; YTD the stock is up 17.23%.

Top 10 Quality Companies To Invest In Right Now

Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Dick's Sporting Goods (NYSE: DKS  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

What we're looking for
The graphs you're about to see tell Dick's story, and we'll be grading the quality of that story in several ways:

Growth: are profits, margins, and free cash flow all increasing? Valuation: is share price growing in line with earnings per share? Opportunities: is return on equity increasing while debt to equity declines? Dividends: are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let's take a look at Dick's key statistics:

Top 10 Quality Companies To Invest In Right Now: LTC Properties Inc (LTC)

LTC Properties, Inc., incorporated on May 12, 1992, a health care real estate investment trust (REIT). The Company invests primarily in senior housing and long term care properties through property lease transactions, mortgage loans and other investments. Its primary senior housing and long term healthcare property types include skilled nursing properties (SNF), assisted living properties (ALF), independent living properties (ILF) and combinations thereof. During 2011, it leased a private school property to a non-for-profit corporation providing therapeutic support and intensive home, school and center-based behavioral therapy for children, youth and families affected by Autism Spectrum Disorders. The Company, during 2011, acquired a 196-bed skilled nursing property. It purchased a 140-bed skilled nursing property located in Texas during 2011. During December 31, 2011, it acquired a vacant parcel of land in Texas. The Company, on March 26, 2012, acquired a skilled nursing property with 144 licensed beds. In May 2012, the Company acquired a 3.16 acre vacant parcel of land in Colorado. In July 2012, the Company acquired a skilled nursing property with 90 licensed beds. In August 2012, it acquired two skilled nursing facilities with a total of 288 licensed beds. In January 2013, the Company purchased two parcels of land.

As of 2011, it has investments in 12 states that include mortgages to 14 different operators. Skilled nursing facilities provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient's family, private health insurance, or through the federal Medicare or state Medicaid programs.

Assisted living facilities serve elderly persons who require assistance w! ith activities of daily living, but do not require the constant supervision skilled nursing facilities provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs.

Independent living facilities, also known as retirement communities or senior apartments, offer a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers.

One of the properties in the Company�� real estate investment portfolio is a charter school. Charter schools provide an alternative to the traditional public school. Charter schools are autonomous entities authorized by the state or locality to conduct operations independent from the surrounding public school district. Laws vary by state, but generally charters are granted by state boards of education either directly or in conjunction with local school districts or public universities. Operators are granted charters to establish and operate schools based on the goals and objectives set forth in the charter. Upon receipt of a charter, schools receive an annuity from the state for each student enrolled. The other school in the Company�� investment portfolio is a private school and is closed and classified as held-for-sale.

As of 2011, the Company had investments in 25 states leased to 30 different operators. The Company�� owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 10 to 15 years. Many of the leases contain renewal options and! one cont! ains limited period options that permit the operator to purchase the property. The leases provide for fixed minimum base rent during the initial and renewal periods. The majority of the Company�� leases contain provisions for specified annual increases over the rents.

Advisors' Opinion:

• [By GURUFOCUS]

  LTC Properties Inc. (LTC) operates as a health care real estate investment trust (REIT) in the United States.Yield: 5.2%

  Gladstone Commercial Corporation (GOOD) operates as a real estate investment trust (REIT) in the United States.Yield: 7.9%

• [By Marc Bastow]

  Healthcare real estate investment trust LTC Properties (LTC) announced a 9.7% increase to its monthly dividend, to 17 cents per share, payable Oct. 31, Nov. 29 and Dec. 31 to shareholders of record as of Oct. 23, Nov. 21, and Dec. 23, respectively.
  LTC Dividend Yield: 5.46%

Top 10 Quality Companies To Invest In Right Now: New Western Energy Corp (NWTR)

New Western Energy Corporation, incorporated on September 25, 2008, is an oil and gas and mineral exploration and production company with current projects located in Oklahoma, Kansas and Texas. The Company�� principal business is in the acquisition, exploration and development of, and production from oil, gas and mineral properties. The Company�� project includes Oklahoma Project, Texas Project, Kansas Project and Pennsylvania project. As of December 31, 2011, the Company�� total estimated unproved reserves were approximately 1,495,757 barrels of oil reserves. On January 2, 2012, the Company acquired of 100% interest in Royal Texan.

Oklahoma Project

This project comprises of two leases Glass and Phillips. The Glass Lease is located in Roger County, Oklahoma. The Glass leasehold property contains approximately 120 acres. The Phillips Lease is located in Rogers County, Oklahoma. The Phillips leasehold property contains approximately 150 acres. The Company�� oil leases located in Oklahoma were originally obtained from one lessor RC Oil Co.

Texas Project

This project comprises of three leases Swenson, Reves and McLellan. On January 27, 2011, the Company�� subsidiary New Western Texas acquired a 50% working interest in 160 acres of oil and gas leases in Jones County, Texas, known as the Swenson Lease. On August 8, 2011, the Company�� subsidiary New Western Texas was assigned from a third party a Paid Up Oil and Gas Lease agreement with Michael L. McLellan and Paula McLellan (Lessors), which provided us a 50% working interest in approximately 160 acres of land for the purpose of exploring for developing, producing and marketing oil and gas, along with all hydrocarbon and non-hydrocarbon substances produced.

Kansas Project

On December 20, 2011, entered into an assignment of oil and gas lease with an independent third party for an oil and gas property in Kansas referred to as Chautauqua Lease, whereby the assignor gra! nted the rights to the Company to carry on geographical and other exploratory work, including core drilling, and the drilling, and operating for producing, and marketing all of the oil, gas, including all associated hydrocarbons. As of December 31, 2011, the Company has not started any oil and gas exploration on Chautauqua Lease.

Pennsylvania project

The property is approximately 23 acres and is located on a glacial aged kame terrace. The terrace sands, gravels and finer sediments were deposited in response to blockage by glacial ice. Pennsylvania's Marcellus Shale natural gas producers operate approximately 50,000 wells and deliver more than 158 billion cubic feet of natural gas.

Advisors' Opinion:

• [By Peter Graham]
  New Western Energy Corp (OTCMKTS: NWTR) May Have Enough Cash for Now

  Small cap New Western Energy Corp is an independent energy company engaged in the acquisition, development, production, and exploration of oil, gas and minerals primarily in North America. On Friday, New Western Energy Corp fell 16% to $0.189 for a market cap of $13.02 million plus NWTR is down 37% over the past year and down 10% since February 2012 according to Google Finance.

Hot Warren Buffett Companies To Buy Right Now: Micromem Technologies Inc (MMTIF)

Micromem Technologies Inc. (Micromem), incorporated on October 21, 1985, is a development-stage company. The Company is engaged in the development of memory technology that has the characteristics of non-volatility, which is the ability to retain information after power has been shut off. The Company is focused on magnetic sensor applications. The Company is focused on research and development of nano-magnetic random access memory (MRAM). Micromem operates in a single segment as a developer of non-volatile magnetic memory and sensor technology. The Company partners with industry to manufacture.

The Company�� technology is based on the ability to use magnetic materials in combination with a sensor to record the state of magnetization. Each magnetic element stores one bit of data based on its ability to alternate between states of magnetic polarization, which states are determined by a sensor.

The Company competes with IBM.

Advisors' Opinion:

• [By Peter Graham]

  At the end of last week, small cap stocks Senesco Technologies, Inc (OTCBB: SNTI), VolitionRX Ltd (OTCMKTS: VNRX) and Micromem Technologies Inc (OTCBB: MMTIF) were all trending upwards ��ending up 13.65%, 8.73% and 7.61%, respectively, on Friday. However, it�� a new trading week with the last two trading days for the year. So what direction will these three small caps head in for the end of this year and into next year? Here is a quick look to help you decide on a trading or investment strategy:

Top 10 Quality Companies To Invest In Right Now: Naturalnano Inc (NNAN)

NaturalNano, Inc. (NaturalNano), incorporated on February 18, 2000, is engaged in the development and commercialization of material science technologies with an emphasis on additives to polymers and other industrial and consumer products by taking advantage of technology advances developed in-house. During the year ended December 31, 2011,the Company�� activities are directed toward research, development, production and marketing of its technologies relating to the treatment and separation of nanotubes from halloysite clay and the development of related commercial applications for cosmetics, health and beauty products, and polymers, plastics and composites.

The company�� halloysite natural tube (HNT) products involve filling HNTs with active agents for use in the polymer composites, health and beauty, household product, and agrichemical industries. The filled tube product contains a material of interest within the tubes, such as an antimicrobial compound to provide antimicrobial properties to the resulting polymer composite material. The filled-tube products will focus on the utilization of the tubular nature of the halloysite nanotubes, by filling or adsorbing the tubes with active agents for the polymer nanocomposites, household products, cosmetics, agriculture, and pharmaceutical industries. The Company designs, manufactures and sells custom designed error prevention/safety checklist boards.

The Company competes with Air Products and Chemicals, BASF, Dow, E.I. DuPont de Nemours & Company, Applied Minerals, Davis International and Imagexpress.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Naturalnano Inc (OTCMKTS: NNAN), Global Payout, Inc (OTCMKTS: GOHE) and Blue Water Global Group Inc (OTCBB: BLUU) were either jumping higher or diving lower yesterday. To complicate matters for investors, two of these small cap stocks have been subjects of disclosures about paid promotion or investor relation campaigns. So what will these three small caps do for the rest of this week? Here is a closer look to help you decide on a trading or investing strategy:

Top 10 Quality Companies To Invest In Right Now: Progenics Pharmaceuticals Inc.(PGNX)

Progenics Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases in the United States and internationally. Its primary programs focus on gastroenterology, oncology, and virology. The company offers RELISTOR (methylnaltrexone bromide) subcutaneous injection, a therapy for opioid-induced constipation. It is also conducting a Phase I clinical trial of a human monoclonal antibody-drug conjugate directed against prostate specific membrane antigen (PSMA), a protein found at high levels on the surface of prostate cancer cells, as well as in blood vessels supplying other solid tumors. In addition, the company is developing PRO 140, a viral-entry inhibitor for human immunodeficiency virus (HIV), which is in Phase II clinical testing; and multiplex PI3-Kinase inhibitors for the treatment of cancer. Progenics Pha rmaceuticals, Inc. has license agreement with Salix Pharmaceuticals, Ltd. for the development and commercialization of RELISTOR worldwide other than Japan. The company was founded in 1986 and is based in Tarrytown, New York.

Advisors' Opinion:

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Progenics Pharmaceuticals (NASDAQ: PGNX  ) has received a distressing two-star ranking.

Top 10 Quality Companies To Invest In Right Now: Helios Advantage Income Fund Inc. (HAV)

Helios Advantage Income Fund, Inc. is a close ended fixed income mutual fund launched and managed by Brookfield Investment Management Inc. The fund invests in the fixed income markets of the United States. It invests a majority of its assets in below investment grade debt securities, which are bonds rated Ba1 or lower by Moody's Investors Service, Inc., BB+ or lower by Standard & Poor's Ratings Group. The fund benchmarks the performance of its portfolio against the Barclays Capital U.S. Corporate High Yield Index and the Barclays Capital Ba U.S. High Yield Index. It was formerly known as RMK Advantage Income Fund, Inc. Helios Advantage Income Fund, Inc. was formed on November 8, 2004 and is domiciled in the United States.

Advisors' Opinion:

• [By Namitha Jagadeesh]

  Havas SA (HAV) lost 1.6 percent to 5.78 euros. Barclays Plc downgraded the French advertising company to equal weight, similar to neutral, from overweight, citing the need to ��ause for breath��after its strong performance over the past three months. Havas climbed 28 percent from a June 24 low through yesterday�� close.

• [By Tom Stoukas]

  Havas SA (HAV) surged 6 percent to 5.82 euros, its largest rally in 14 months. The French advertising company reported first-half profit of 58 million euros ($77 million), beating the average analyst estimate of 55.9 million euros.

Top 10 Quality Companies To Invest In Right Now: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.

Advisors' Opinion:

• [By Diane Alter]

  Dividend Stocks That Increased Payout in September

  Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good
• [By Rich Smith]

  Raytheon's rockets will be deployed to defend the base, while Lockheed Martin (NYSE: LMT  ) is managing the overall project. And last week, we found out who will build it, when government contractor KBR (NYSE: KBR  ) was awarded $134 million to turn the 430-acre site into a missile base.

• [By Jim Royal]

  In this series, we examine several companies in a single industry to determine their ROIC. Let's take a look at Lockheed Martin (NYSE: LMT  ) and three of its industry peers, to see how efficiently they use cash.

Top 10 Quality Companies To Invest In Right Now: Toro Co (TTC)

The Toro Company (Toro), incorporated on November 7, 1983, designs, manufactures, and markets professional turf maintenance equipment and services, turf irrigation systems, agricultural micro-irrigation systems, landscaping equipment and lighting, and residential yard and snow removal products. The Company operates in three business segments: Professional, Residential, and Distribution. Its products are advertised and sold at the retail level under the names of Toro, Exmark, Irritrol, Hayter, Pope, Lawn-Boy and Lawn Genie. In October 2013, the Company acquired Xiamen Xiangfeng Water Saving Equipment Co., Ltd.

Professional

The Company designs professional turf, landscape, and agricultural products and markets them worldwide through a network of distributors and dealers, as well as directly to Government customers, rental companies, and retailers. These channel partners then sell its products to professional users engaged in creating and renovating landscapes, irrigating turf and agricultural fields, and maintaining turf, such as golf courses, sports fields, municipal properties, and residential and commercial landscapes.

Landscape Contractor Market

The Company market products to landscape contractors under the Toro and Exmark brands. Products for the landscape contractor market include zero-turn radius riding mowers, heavy-duty walk behind mowers, mid-size walk behind mowers, stand-on mowers, and turf renovation and tree care equipment. It also offers some products with electronic fuel injection engine options. In fiscal 2013, it enhanced its line of Toro Z Master Commercial 3000 Series mowers, featuring its TURBO FORCE cutting deck, integrated pump, and wheel motors designed for professional results, performance, and dependability. In addition, in fiscal 2013, it introduced the new Exmark Vantage X-Series stand-on mower.

Sports Fields and Grounds Market

Products for the sports fields and grounds market include riding rotar! y mowers and attachments, aerators, and debris management products, which include versatile debris vacuums, blowers, and sweepers. Other products include multipurpose vehicles, such as the Toro Workman, that can be used for turf maintenance, towing, and industrial hauling. These products are sold through distributors, who then sell to owners and/or managers of sports fields, Governmental properties, and residential and commercial landscapes.

Golf Course Market

The Company�� products for the golf course market include large reel and rotary riding products for fairway, rough and trim cutting; riding and walking mowers for putting greens and specialty areas; greens rollers; turf sprayer equipment; utility vehicles; aeration equipment; and bunker maintenance equipment. In fiscal 2013, it introduced the Reelmaster 3550-D, which features a productive 82 inch cutting width, enhanced ground-following capability with turf-friendly tires, and three-wheel drive system designed for traction in hilly and wet conditions. In addition, in fiscal 2013, it began offering versions of its golf products which are compliant with Tier 4 diesel engine emission requirements. It also manufacture and market underground irrigation systems for the golf course market, including sprinkler heads, controllers, turf sensors, and electric, battery-operated, and hydraulic valves. Its 835S/855S Series golf sprinklers are equipped with a unique TruJectory feature that provides enhanced water distribution control. Its Turf Guard wireless soil monitoring systems are designed to measure soil moisture, salinity, and temperature through buried wireless sensors that communicate through an Internet server for processing and presentation to a user through the Web.

Residential/Commercial Irrigation and Lighting Market

Turf irrigation products marketed under the Toro and Irritrol brands include rotors; sprinkler bodies and nozzles; plastic and brass valves; drip tubing and subsurface irrigation; ! electric ! and hydraulic control devices; and wired and wireless rain, freeze, and climate sensors. These products are designed to be used in residential and commercial turf irrigation systems that are installed into new systems or used to replace or retrofit existing systems. Most of the product lines are designed for underground automatic irrigation. Electric and hydraulic controllers activate valves and sprinkler bodies and nozzles in a typical irrigation system. Its retail irrigation products are marketed under the Toro and Lawn Genie brand names. These products are designed for homeowner installation and include sprinkler heads, valves, timers, and drip irrigation systems. Its ECXTRA sprinkler timers can be used with a home computer and its Scheduling Advisor recommends the proper watering schedule based on the local weather, plant type, and sprinkler. It manufactures and market lighting products under the Unique Lighting Systems brand name.

Micro-Irrigation Market

Products for the micro-irrigation market include products that regulate the flow of water for drip irrigation, including Aqua-Traxx PBX drip tape, Aqua-Traxx PC (pressure-compensating) drip tape, Blue Stripe polyethylene tubing, BlueLine drip line, and NGE emitters, all used in agriculture, mining, and landscape applications. In addition to these products, it offers control devices and connection options. These products are sold primarily through dealers and distributors who then sell to end users for use primarily in vegetable fields, fruit and nut orchards, vineyards, landscapes, and mines. In fiscal 2013, it expanded its product offering of the Neptune thinwall dripline into the North America market, featuring a medium-durability dripline that enables growers to install a subsurface drip irrigation system designed to last for up to ten years and to allow growers of medium-length crops to adopt drip irrigation. In addition, in fiscal 2013, it introduced AquaFlow 3.2 Drip Irrigation Design Software, a new software packag! e used to! help design drip irrigation systems.

Rental and Construction Market

The Company offers over 35 attachments for our compact utility loaders, including trenchers, augers, vibratory plows, and backhoes. In fiscal 2013, it launched the STX-38 Stump Grinder featuring high maneuverability and hydraulic sweep control. Products for the rental market include compact utility loaders, walk-behind trenchers, stump grinders, and turf renovation products, many of which are also sold to landscape contractors. Its presence in the construction market is driven by an equipment line of vibratory plows, trenchers, and horizontal directional drills, all of which are used in the installation, repair, and replacement of underground utilities with minimal impact on surrounding landscapes or structures. In fiscal 2013, it introduced the Toro Pro Sneak Vibratory Plow that delivers consistent and powerful plowing in a compact, maneuverable package.

Residential

The Company markets its residential products to homeowners through a variety of distribution channels, including outdoor power equipment dealers, hardware retailers, home centers, mass retailers, and over the Internet. These products are sold mainly in North America, Europe, and Australia, with the exception of snow removal products that are sold primarily in North America and Europe.

Walk Power Mower Products

The Company manufactures and markets a number of walk power mower models under its Toro and Lawn-Boy brand names, as well as the Pope brand in Australia and the Hayter brand in the United Kingdom. Toro also offers a line of rear-roller walk power mowers, a design that provides a striped finish, for the United Kingdom market.

Riding Products

The Company manufactures and markets riding products under the Toro brand name worldwide and under the Hayter brand name in the United Kingdom. Riding products primarily consist of zero-turn radius mowers. Lawn and garden tra! ctor mode! ls are sold worldwide. In addition, its rear engine and direct-collect riding mowers are manufactured and sold in the European market. A number of models are available with a variety of engines, decks, transmissions, and accessories.

Home Solutions Products

Toro designs and markets home solutions products under the Toro and Pope brand names, including electric and battery-operated grass trimmers, electric blower-vacuums, electric blowers, and electric snow throwers. In Australia, the Company also designs and markets underground and hose-end retail irrigation products under the Pope brand name.

Gas Snow Removal Products

The Company manufactures and markets a range of gas-powered single-stage and two-stage snow thrower models. Single-stage snow throwers are walk behind units with lightweight two- and four-cycle gasoline engines. Its two-stage snow throwers are designed for large areas of deep, heavy snow and use four-cycle engines. The Company�� two-stage snow throwers include a line of models featuring the Power Max auger system and the Quick Stick chute control technology.

Advisors' Opinion:

• [By Rich Duprey]

  Consumer landscape equipment maker�Toro� (NYSE: TTC  ) �announced yesterday its second-quarter dividend of $0.14 per share, the same rate it paid the past two quarters after raising the payout 27% from $0.11 per share.

• [By Charles Sizemore]

  Stuart Varney took it a step further, mentioning Toro Company (TTC), the maker of many of the snow blowers that have become a common sight across much of America this year. I agreed, adding that Toro is a major manufacturer of lawn and turf maintenance equipment — and because virtually every lawn, park and golf course in America has suffered damage this year, and Toro is well positioned to profit from the repairs.

• [By Seth Jayson]

  There's no foolproof way to know the future for Toro (NYSE: TTC  ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

Top 10 Quality Companies To Invest In Right Now: Navistar International Corporation (NAV)

Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, buses, diesel engines, and recreational vehicles, as well as provides service parts for trucks and trailers worldwide. The company operates in four segments: Truck, Engine, Parts, and Financial Services. The Truck segment manufactures and distributes trucks and buses for the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicles, and student and commercial transportation markets under the International and IC brands; assembles components; and produces sheet metal components, including truck cabs. This segment markets its products through its independent dealer network, and distribution and service network retail outlets comprising 784 in the United States and Canada, 86 in Mexico, and 292 internationally, as well as markets reconditioned used trucks to owner-operators and fleet buyers through its network of us ed truck centers. The Engine segment designs, manufactures, and sells diesel engines under the MaxxForce brand for use in the medium trucks, heavy trucks, and military vehicles, as well as for its IC branded school buses and other applications. The Parts segment provides customers with products required to support the company�s brands, as well as offers other truck, trailer, and engine service parts. The Financial Services segment provides and manages retail, wholesale, and lease financing services for products sold by the Truck and Parts segments and their dealers. It also operates as a private-label designer and manufacturer of diesel engines for the pickup truck, van, and sport utility vehicle markets. Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois.

Advisors' Opinion:

• [By Dave Paterson]

  One unfortunate drawback is that sometimes the market price may be higher or lower than the Net Asset Value (NAV) of the underlying basket of securities.

• [By Arjun Sreekumar]

  And finally, several companies are working hard to surmount the challenge of limited refueling infrastructure. For instance, Navistar (NYSE: NAV  ) , a manufacturer of trucks and diesel engines, is partnering with Clean Energy Fuels (NASDAQ: CLNE  ) to offer natural gas-powered trucks and greater refueling infrastructure.

Top 10 Quality Companies To Invest In Right Now: Tumi Holdings Inc (TUMI)

Tumi Holdings, Inc. (Tumi), incorporated in September 2004, offers a range of travel and business products and accessories in various categories. The Company designs its products for, and markets its products to, professionals, travelers and individuals. As of December 31, 2011, the Company distributed its products worldwide in over 70 countries through approximately 1,600 points of distribution. The Company sells its products worldwide to consumers through both direct and indirect channels and manages its business through four operating segments: Direct-to-Consumer North America, Direct-to-Consumer International, Indirect-to-Consumer North America and Indirect-to-Consumer International.

Tumi utilizes an array of channels, including retail, wholesale and e-commerce. The Company�� retail stores are located in retail venues worldwide, including New York, San Francisco, Chicago, Paris, London, Rome, Tokyo, Munich, Moscow, Milan and Barcelona. The Company designs its products in its United States design studios. The Company sells its products directly to consumers through a worldwide network of approximately 100 company-owned locations, consisting of full-price stores located in retail malls or street venues, outlet stores in outlet malls and its e-commerce Websites. During the year ended December 31, 2011, Direct-to-Consumer sales consisted approximately 48% of its net sales.

The Company sells its products indirectly to consumers through various channels that include partner stores (wholesale accounts operated by local distributors or retailers that carry only Tumi products), its worldwide wholesale distribution network of specialty luggage retailers, department stores and business-to-business channels, retail concessions within department stores and third-party e-commerce sites, such as Amazon.com, Zappos.com. Indirect-to-Consumer sales consisted of approximately 52% of its net sales during 2011. Tumi offers travel and business products, as well as accessories. Travel produc! ts include wheeled and soft carry-on luggage, garment bags, totes, duffels, wheeled packing cases and travel kits. Business products include business cases, day bags and totes. Its accessories include agendas and planners, passport cases, umbrellas and travel accessories, such as electric current adapters, key fobs, packing accessories, toiletry kits and foldable travel totes. Its accessories also include belts, outerwear and sunglasses and eyewear.

Direct-to-Consumer North America

The Company sells its products directly to consumers through a network of 83 company-owned retail stores consisting of full-price stores and outlet stores located in retail malls or street venues. It also sells its product directly to consumers through its e-commerce Website.

Direct-to-Consumer International

As of December 31, 2011, the Company sold directly to consumers through a network of 14 company-owned full-price and outlet stores in street venues and select malls in international locations. It also sells its products directly to consumers through its two international e-commerce Websites.

Indirect-to-Consumer North America

As of December 31, 2011, the Company sold to wholesale customers in North America through approximately 700 doors, including specialty luggage retailers, department stores and business-to-business channels. Many of its wholesale customers also operate their own e-commerce Websites through which it sells. The Company�� products are also sold in partner stores operated by local distributors or retailers that carry only Tumi products.

Indirect-to-Consumer International

The Company sells its products to wholesale customers through approximately 800 doors, approximately 59% of which are in the Europe, Middle East and Africa region, 39% of which are in the Asia-Pacific region, and 2% of which are in the Central and South America region. It has distribution channels in Australia, China, Europe, Hong Kon! g, the Mi! ddle East, South Africa, South Korea, Southeast Asia and Taiwan. Its products are also sold in partner stores operated by local distributors or retailers that carry only Tumi products. The Company also operates concessions in department stores throughout Europe and the Middle East. Many of its wholesale customers also operate their own e-commerce Websites through which they sell its products.

Tumi competes with Rimowa, Samsonite, Bally, Burberry, Dunhill, Ferragamo, Gucci, Louis Vuitton, Montblanc, Porsche, Prada, Victorinox, Briggs and Riley, Mandarina Duck, Piquadro, Porter, Ace Brand, and Coach.

Advisors' Opinion:

• [By Luke Jacobi]

  Tumi Holdings (NYSE: TUMI) was also up, gaining 6.09 percent to $20.55 after the company signed a licensing agreement with David Peyser Sportswear.

Amazon: The Song Remains the Same

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The Street eagerly awaits Amazon (AMZN) earnings each quarter … but really, why even bother?

You see, nearly every quarter we get a case of what classic rockers Led Zeppelin call, "The Song Remains the Same." That is to say, Amazon earnings come in with big revenue growth and a tiny profit due largely to massive reinvestment of capital into the business that allows it to expand.

This is all part of CEO Jeff Bezos' master plan to take over not just the electronic retailing world (it has long since done that), but also the way humans consume everything, from books to entertainment to groceries.

To couch it in Led Zeppelin-like poetry, you might say Bezos, "Had a dream. Crazy dream."

A Look at Amazon Earnings … For What They’re Worth

During Q1, AMZN reported earnings growth of 28% vs. the prior year, with EPS coming in at 23 cents. That metric was in line with consensus expectations. As for the top line, Amazon saw sales growth of 23% year over year to a remarkable $19.74 billion.

That's a lot of cheese, as the saying goes.

More importantly, it also represents revenue acceleration over Q4's relatively low (yet still enviable) growth of “just” 20% year-over-year.

The bad news for Q1 Amazon earnings is that the company saw operating income fall 19% to $146 million. Amazon cited increased costs and increased sales support spending for the tepid bottom-line while reporting that total operating expenses — things such as fulfillment, content, marketing and technology — jumped by 23.3%. Shipping costs, always an issue for Amazon, rose some 28% worldwide.

Shareholders got even more bad news on Friday, as Wall Street basically interpreted Amazon earnings negatively … and started to look ahead.

Specifically, AMZN shares sank nearly 9% in mid-Friday trade, as the fast money focused on the company's less-than-robust Q2 outlook. Amazon forecasts sales in the coming quarter to be $18.1 billion to $19.8 billion. That's a disappointment when the average analyst forecast sits at $19.03 billion. The company also said it anticipates operating at a loss in the second quarter.

That’s Fine. AMZN Isn’t About Earnings

Now, the Street's reaction to the Q1 metrics and Q2 forecast is clear in terms of how bad AMZN stock was tanking late Friday.

Thing is, like it always is, when considering AMZN, you have to play the long game.

Yes, profits are tiny, but that has always been the case. The more important thing here is that revenue continues to grow, and Amazon continues to make investments in future growth areas. Some recent examples of this are video content deals with the likes of HBO, as well as future plans to move into the so-called "last mile" delivery. (This delivery issue is where I suspect that, given time, we'll ultimately see costs reduced significantly.)

Of course, the issue for investors here is, should you be buying the same old song and dance from Amazon?

Absolutely.

Given the double-digit percentage haircut in the shares over the past several months, I think now could be the best time in years to buy AMZN stock for the intermediate and/or long term. Much harder here is what to do with the stock if you've been long and have a substantial gain.

For example, those who bought and held AMZN five years ago now are sitting on a profit of more than 300%. Hey, if you're one of those investors, then banking gains certainly is understandable.

However, one thing for certain is that Jeff Bezos is in it for the long haul.

If you want to make money in the long haul too (and don't we all), then I say buy more AMZN stock at current levels.

As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.

MSFT Wins In The Cloud, Suffers On PCs In New CEO's First Quarter

New Microsoft Microsoft CEO Satya Nadella has a big turnaround to manage.

One one hand, Microsoft's third quarter earnings beat Wall Street estimates: earnings per share registered at $0.68 vs. $0.63 estimated, and revenue hit $20.4 billion vs. $20.39 billion estimated. But those numbers represent a decline from a year ago. Sales fell 0.4%, while profit declined 6.5%.

What growth there was came from cloud services, like Office 365, where revenue grew over 100%, and Azure, which grew more than 150%. Bing US search grew market share too, reaching 18.6% and driving search advertising revenue up 38%.

But those highlights couldn't make up for declining personal computer sales. Microsoft also announced that it expects to close its $7 billion acquisition of Nokia's handset business on Friday.

"This quarter's results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world," CEO Satya Nadella said in a statement. "We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth. We are focused on executing rapidly and delivering bold, innovative products that people love to use."

On Wednesday, Apple Apple CEO Tim Cook said Microsoft erred by not releasing iOS versions of popular Office software sooner. "If it had been done earlier, it would've been better for Microsoft frankly," he told analysts in a conference call.

Microsoft shares sank in morning trading on Thursday, then rallied in the afternoon to end the day nearly flat. Shares ticked up over 2.6% in after hours trading on the earnings release.

Follow Brian on Facebook and Twitter.

Microsoft's Biggest Hits And Flops

2 Reasons to Sell IPG Photonics Stock Today

I'm going to attempt something a little odd today, Fools. Even though IPG Photonics (NASDAQ: IPGP  ) -- a company that makes fiber optic lasers -- makes up 5% of my real-life holdings, I'm going to be giving you two reasons to consider selling IPG stock today.

Why am I doing this?

Recently, Nobel Prize winner Daniel Kahneman visited Fool headquarters in Virginia. While visiting, he talked about how a number of different biases can lead us to believe we can predict the future with relative certainty. In reality, he argued, we're just deluding ourselves.

It got me to thinking about how I don't write enough about the risks of owning the stocks I own. So although I don't plan on selling my IPG stock anytime soon, I think it's healthy for me to practice and model this behavior.

Let's go over the three points.

Disrupting the disruptor
When I purchased shares of IPG Photonics last April, I used this chart as the basis for my investing thesis.

Source: Author, based on The Innovator's Dilemma by Clayton Christensen

This is my own representation of an idea gleaned from Clayton Christensen's The Innovator's Dilemma. The book demonstrates how new technologies eventually usurp standard technologies. Just as important, while standard technologies usually maintain the same price point, newer technologies become cheaper with time.

For decades, the standard technology in the laser industry has been the carbon-based laser. In reality, these lasers are still commonly used, and sold in bulk by the likes of Rofin-Sinar (NASDAQ: RSTI  ) and Coherent (NASDAQ: COHR  ) . They are used largely for precision cutting of large pieces of metal.

But starting in the 1990s, when IPG was founded, a new type of laser began developing. Though IPG's fiber optic lasers were at first far too expensive, and not powerful enough, to gain wide acceptance, that has changed with time. Now, IPG's lasers are more efficient, and powerful, than their carbon-based partners, and can compete on price to boot!

The problem, however, is that there could be further disruption right around the corner. I am far from being an expert in lasers -- and I'm guessing the same is true of many Fools. Because of that, it's going to be very difficult for me to see a newer laser -- one that's even cheaper and more powerful than fiber optics -- coming to the market. If that does happen, IPG could quickly lose market share.

The downside of vertical integration
While IPG was the first on the scene with fiber optic lasers, it's no longer the only company with skin in the game. Rofin-Sinar and Coherent now offer fiber optic lasers along side their carbon lasers. Furthermore, JDS Uniphase  (NASDAQ: JDSU  ) , which focuses much more on the communications industry, has entered the fray by offering clients fiber optic lasers.

With the competition, IPG decided to further differentiate itself by becoming vertically integrated. Usually, a laser-making company will contract out for component parts, like laser diodes, to be delivered and then assembled by its own people. IPG, on the other hand, does everything—from manufacturing the small component parts to assembling them to shipping them off the customers—in house.

During boom times, this is great for business. IPG is able to get all of its component parts for much cheaper than JDS, Coherent, and Rofin-Sinar. That makes it easier to turn a profit and/or offer lasers for cheaper than the competition.

During difficult economic times, however, the situation gets flipped on its head. JDS, Rofin-Sinar, and Coherent can simply order less component parts and spend less money in the face of less demand. IPG, however, has a certain amount of fixed overhead costs it will have to pay no matter the economic climate.

IPG stock, therefore, can get hit much harder during downturns than the competition's.

What's a Fool to do?
To be honest, the concerns over vertical integration don't bother me too much, as I think the boom times typically occur with greater frequency than bust times. The first concern -- over being disrupted -- is one that I definitely need to keep my eye on.

Another disruptive innovator that I own and believe in is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table. Find out why he and I are so confident this will be a huge winner in 2013 and beyond. Just click here to watch!

Chipotle Earnings Look Primed to Stay Spicy-Hot

Chipotle Mexican Grill (NYSE: CMG  ) will release its quarterly report on Thursday, and shareholders have already gotten a head-start on celebrating, with shares starting to approach levels not seen since last summer. But will the burrito giant be able to keep investors happy this time around, or will its shares plunge again as they did a year ago?

For Chipotle, it's not a matter of whether earnings will grow but rather how much they'll grow, as the chain has tapped into the trend toward healthier foods and limited-menu options that emphasize the company's strengths. Let's take an early look at what's been happening with Chipotle over the past quarter and what we're likely to see in its quarterly report.

Stats on Chipotle

Analyst EPS Estimate	$2.81
Change From Year-Ago EPS	9.8%
Revenue Estimate	$803.07 million
Change From Year-Ago Revenue	16.2%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

Will Chipotle earnings get spicier this quarter?
Analysts have gotten even more optimistic in recent months about Chipotle's earnings prospects, boosting their June-quarter estimates by a nickel per share and their full-year 2013 consensus by more than $0.35 per share. The stock has also responded favorably, having risen more than 12% since early April.

Much of those share-price gains came right after Chipotle reported earnings for the first quarter in April. Even though same-store sales only managed to rise 1% and operating margins declined by more than a full percentage point, the company posted strong earnings and overall revenue growth from new restaurant locations, and more importantly gave positive guidance on future store openings toward the higher end of its previously expected range.

Still, Chipotle has looked for ways to boost its growth even further. Plans to offer premium margaritas with Patron tequila could help drive further sales, although other food chains have had mixed results from premium beverages. McDonald's (NYSE: MCD  ) , for instance, has seen a rise in customer complaints as waits in line for beverages have gotten longer.

Chipotle has also decided to expand on its ShopHouse Asian Kitchen concept, announcing last month that it would open new stores in Washington, D.C., and Los Angeles. Chipotle hasn't gone very fast with its expansion plans, but given the success of its test restaurant near Washington's Dupont Circle, ShopHouse could give Chipotle a way to grow even in areas where it already has a large number of its own namesake restaurant locations.

Another potential way that Chipotle could probably boost sales would be to raise its menu prices. Food costs have risen substantially, and McDonald's and Panera Bread (NASDAQ: PNRA  ) have both successfully pushed price hikes through to customers. At the same time, though, Chipotle doesn't want to alienate customers at a time in which sales growth is already under pressure.

In Chipotle's earnings report, watch to see how the company responds to news late last month that Jack in the Box (NASDAQ: JACK  ) would close 67 of its Qdoba restaurants, which compete against Chipotle in the Mexican food space. With its having demonstrated its superiority over its burrito rivals, Chipotle is still in a strong position to make the most of the industry's potential well into the future.

One area where Chipotle still has plenty of potential is in expanding internationally. Many other stocks have drawn a lot of success from overseas moves, and The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you some of the best examples. Click here to get your free copy before it's gone.

Click here to add Chipotle to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

3 High-Yield Stocks on the Road Less Traveled

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One of the benefits of quantitative easing was that as bond yields cratered, it required me to hunt down other yield opportunities for both myself and for readers.

Not that I particularly enjoyed having to look elsewhere — but hey, it’s what you do for yield.

Still, the hunt has led me to some interesting discoveries, some of which involved creative or specialty lending firms, real estate investment trust hybrids, and closed-end funds I usually don’t look at.

None of those asset classes are your regular rank-and-file stocks, but then, neither are their dividend yields. So, let’s take a look at three of these high-yielding stocks, and the wrinkles that make them tick.

High-Yield Stocks: BlackRock Municipal Income Trust II (BLE)

BLE Dividend Yield: 7%

BlackRock Municipal Income Trust II (BLE) is the first of our high-yield stocks, and — wouldn’t you know it? — it’s not really even so much a stock as it is a closed-end fund.

A closed-end fund essentially is just a fund that initially raises capital via an initial public offering with a fixed number of shares, purchased as stock. However, rather than a share representing one particular company, it actually represents interest in an actively managed securities portfolio. So it's a bit like a mutual fund, but trades like a stock, rather than just settling on a price at the end of each business day.

This particular BlackRock closed-end fund invests at least 80% in investment-grade municipal bonds, with the other 20% permitted to be allocated towards lower-grade munis that are "judged to be of comparable quality by BlackRock." So you're relying on the managers of BLE stock to truly find market inefficiencies in those lower-rated munis, and not just trying to goose the yield of the fund.

A few other details:

35% of the bonds are rated AA or higher and 94.5% have maturities greater than 4 years. 21.8% are tax-backed, 19% are transportation-related, 15% health-related, 14% are corporate-backed, and 13% are utility-related. The top three states represented in the portfolio are Texas, Illinois and California at 13.8%, 10.8% and 10.4%, respectively.

I would consider BLE stock a somewhat risky choice, but not as crazy risky a full-on junk bond portfolio. It's well-diversified, trades at $14 and certainly is a high-yield qualifier at roughly 7% annually.

High-Yield Stocks: Franklin Street Properties (FSP)

FSP Dividend Yield: 6.1%

Franklin Street Properties (FSP) belongs to another set of high-yield stocks — real estate investment trusts (or just REITs, for brevity’s sake).

Franklin Street invests in "institutional-quality" office properties with concentrations in Atlanta, Dallas, Denver, Houston and Minneapolis. FSP chooses central business district properties, as well as "urban infill" — a fancy name for repurposing real estate that didn't have any purpose.

Top Promising Stocks To Own Right Now

A better way of putting it: Franklin Street is aimed at urban renewal. Still, I like a company that tackles a niche like this. There's risk here, however. If these urban renewals fail, then the company is stuck owning properties with few or no tenants.

But, broadening things a little bit: FSP also has operations involving property acquisitions and dispositions, leasing, development and asset management.

This high-yield stock trades at $12.33 and generates a 6.1% yield.

High-Yield Stocks: American Capital Senior Floating (ACSF)

ACSF Dividend Yield: 5.4%

Our last of the high-yield stocks is American Capital Senior Floating (ACSF). No, ACSF isn't a retirement boating community — it's a business development company. Get ready to yawn.

A business development company, or BDC, are publicly traded vehicles that, like closed-end funds, raise money via a public offering, then invest in various middle-market or early-stage companies. Like REITs, they must spin out 90% of net income to shareholders.

American Capital Senior Floating is different from many BDCs in that 20% to 30% of their investments are in the equity portions of collateralized debt obligations. Rather than take a position as the senior lienholder in an investment, it takes on an equity stake. Other lenders have higher claims on principal and interest, and therefore ACSF is granted a higher effective yield, somewhere in the 15% range.

ACSF stock is relatively new to the markets, so a clear dividend yield hasn't been established yet. However, based on the ignition payout of 18 cents per share, the running dividend yield is about 5.4%.

Like what you see? Sign up for our Dividend Insights e-letter and get income investment advice delivered to your inbox every Friday!

As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at pdlcapital66@gmail.com and follow his tweets @ichabodscranium.

Hot Food Stocks To Watch For 2015

On Friday, McDonald's (NYSE: MCD  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

McDonald's is the sole restaurant chain in the Dow Jones Industrials (DJINDICES: ^DJI  ) , and its golden arches have been a ubiquitous part of American culture for more than half a century. But fast food is big business, and McDonald's has to face many of the same pressures as more traditional industrial members of the Dow. Let's take an early look at what's been happening with McDonald's over the past quarter and what we're likely to see in its quarterly report.

Stats on McDonald's

Analyst EPS Estimate

Hot Food Stocks To Watch For 2015: Terra Nitrogen Company L.P.(TNH)

Terra Nitrogen Company, L.P. engages in the production and sale of nitrogen fertilizer products for agricultural and industrial applications. The company primarily offers anhydrous ammonia and urea ammonium nitrate solutions. Its customers for fertilizer products include dealers, national farm retail chains, and distributors. Terra Nitrogen GP Inc. serves as the general partner of the company. Terra Nitrogen Company, L.P. was founded in 1991 and is based in Deerfield, Illinois. Terra Nitrogen Company, LP. operates as a subsidiary of Terra Industries Inc.

Advisors' Opinion:

• [By Alex Planes]

  The exception, Terra Nitrogen (NYSE: TNH  ) , is a master limited partnership that operates under somewhat different accounting rules. No other major fertilizer company trades as cheaply as CF, and the company is presently paying out just 18% of its free cash flow in dividends. There's a lot of room to boost that payout, which is currently good enough for a tiny 0.9% yield after the pop.

• [By Dan Caplinger]

  Much of the pessimism about PotashCorp has come from two factors. Slower growth in key fertilizer markets China and India have held back the potash producer, as prices for the commodity have fallen from past levels. Meanwhile, lower prices for natural gas have encouraged greater use of nitrogen-based fertilizers, with Terra Nitrogen (NYSE: TNH  ) and a host of other nitrogen-fertilizer producers benefiting at the expense of PotashCorp and other potash producers.

Hot Food Stocks To Watch For 2015: General Mills Inc (GIS)

General Mills, Inc. (General Mills), incorporated on June 20, 1928, is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is also a supplier of branded and unbranded food products to the foodservice and commercial baking industries. The Company manufactures its products in 15 countries and markets them in more than 100 countries. The Company's joint ventures manufacture and market products in more than 130 countries and republics worldwide. General Mills operates in three segments: U.S. Retail, International, and Bakeries and Foodservice. In addition, the Company sells ready-to-eat cereals through its Cereal Partners Worldwide (CPW) joint venture. In February 2012, General Mills acquired Food Should Taste Good, a natural snack foods company based in Needham Heights, Mass. During the fiscal year ended May 27, 2012, the Company acquired a 51% interest in Yoplait S.A.S. and a 50% interest in Yoplait Marques S.A.S. In August 2012, it acquired Yoki Alimentos SA.

General Mills�� ready-to-eat cereals consists of Cheerios, Wheaties, Lucky Charms, Total, Trix, Golden Grahams, Chex, Kix, Fiber One, Reese�� Puffs, Cocoa Puffs, Cookie Crisp, Cinnamon Toast Crunch, Clusters, Oatmeal Crisp and Basic 4. Its refrigerated yogurt include Yoplait, Trix, Delights, Go-GURT, Fiber One, YoPlus, Whips!, Mountain High, Liberte, YOP, Perle de Lait, Petits Filous and Panier. The Company�� refrigerated and frozen dough products consists of Pillsbury, the Pillsbury Doughboy character, Grands!, Golden Layers, Big Deluxe, Toaster Strudel, Toaster Scrambles, Simply, Savorings, Jus-Rol, Latina, Pasta Master, Wanchai Ferry, V.Pearl and La Saltena. The dry dinners and shelf stable and frozen vegetable products includes Betty Crocker, Hamburger Helper, Tuna Helper, Chicken Helper, Old El Paso, Green Giant, Potato Buds, Suddenly Salad, Bac*O��, Betty Crocker Complete Meals, Valley Selections, Simply Steam, Valley Fresh Steamers, Wanchai Ferry, Diablitos and Parampara. Its gr! ain, fruit, and savory snacks consists of Nature Valley, Fiber One, Betty Crocker, Fruit Roll-Ups, Fruit By The Foot, Gushers, Chex Mix, Gardetto��, Bugles, Food Should Taste Good and Larabar. The sessert and baking mixes includes Betty Crocker, SuperMoist, Warm Delights, Bisquick and Gold Medal. Ready-to-serve soup consists of Progresso. The Company�� ice cream and frozen desserts include Haagen-Dazs, Secret Sensations, Cream Crisp and Dolce. Its frozen pizza and pizza snacks includes Totino��, Jeno��, Pizza Rolls, Party Pizza, Pillsbury Pizza Pops and Pillsbury Pizza Minis. General Mills�� organic products include Cascadian Farm and Muir Glen.

The Company�� products are marketed under trademarks and service marks that are owned by or licensed to the Company. Some of the brand names include Dora the Explorer, Disney Cars, and Disney Princesses for yogurt, and Dora the Explorer for cereal; Reese's Puffs for cereal; Hershey's chocolate for a variety of products; Weight Watchers as an endorsement for soup and frozen vegetable products; Macaroni Grill for dry and frozen dinners; Sunkist for baking products and fruit snacks; Cinnabon for refrigerated dough, frozen pastries, and baking products; Bailey's for super-premium ice cream, and a range of characters and brands for fruit snacks, including Scooby Doo, Batman, Tom and Jerry, Ocean Spray, Thomas the Tank Engine, My Little Pony, Transformers, and various Warner Bros. and Nickelodeon characters. Its primary customers include grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores.

U.S. Retail segment

The Company�� U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, and drug, dollar and discount chains operating throughout the United States. Its product categories in thi! s busines! s segment include ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and a range of organic products, including granola bars, cereal and soup.

International segment

The Company�� International segment consists of retail and foodservice businesses outside of the United States. In Canada, its product categories include ready-to-eat cereals, shelf stable and frozen vegetables, dry dinners, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza snacks, refrigerated yogurt, and grain and fruit snacks. In markets outside North America, its product categories include super-premium ice cream and frozen desserts, refrigerated yogurt, grain snacks, shelf stable and frozen vegetables, refrigerated and frozen dough products, and dry dinners. Its International segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products it manufactures for sale to its international joint ventures.

Bakeries and Foodservice segment

In Company�� Bakeries and Foodservice segment its product categories include cereals, snacks, refrigerated yogurt, unbaked and fully baked frozen dough products, baking mixes, and flour. It sells to distributors and operators in many customer channels, including foodservice, convenience stores, vending and supermarket bakeries.

Advisors' Opinion:

• [By Dan Newman]

  When you think General Mills� (NYSE: GIS  ) , you probably think of Cheerios. Maybe even Honey Nut Cheerios. But the brands it owns -- and the land it operates in -- are vast. If you had no clue the company earns as much in the Asia and Pacific region as it does in Canada, and that international revenue has grown 23% over the past nine months, you should probably take a second glance at this seemingly boring stock.

Top Industrial Disributor Companies To Own In Right Now: Sprouts Farmers Market Inc (SFM)

Sprouts Farmers Market, Inc. (Sprouts), incorporated on January 27, 2011, is a specialty retailer of natural and organic food focusing on health and wellness. The Company offers fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, bakery, dairy, frozen foods, body care and natural household items. The Company�� product offerings focus on fresh, natural and organic foods. Natural foods can be defined as foods that are minimally processed and are free of synthetic preservatives, artificial sweeteners, colors, flavors and other additives, growth hormones, antibiotics, hydrogenated oils, stabilizers and emulsifiers. The Company categorize the over 7,000 range of products, it sells as perishable and non-perishable. Perishable product categories include produce, meat, seafood, deli and bakery. Non-perishable product categories include grocery, vitamins and supplements, bulk items, dairy and dairy alternatives, frozen foods, beer and wine, and natural health and body care.

The cornerstones of the Company�� business are fresh, natural and organic products. As of July 19, 2013, the Company opened 87 new stores while rebranding 43 Henry�� and 39 Sunflower stores to the Sprouts banner. The Company�� stores include Produce, Bulk Items, Vitamins and Supplements, Grocery, Meat, Seafood, Deli, Bakery, Dairy and Dairy Alternatives, Frozen Foods, Beer and Wine and Natural Health and Body Care.The Company offer its customers a farmers market open-feel environment consisting of an abundant and affordable offering of fresh fruits, vegetables and herbs, focused on appearance, flavor and value. The Company�� stores include a crafted selection of more than 450 ranges of scoopable nuts, fruits, trail mixes, grains, beans, cereals, coffee, tea, spices, candy and snacks featured in the center of the store. The Company�� stores feature more than 4,200 vitamins, supplements, natural remedies, functional food, lifestyle support, and herbal supplements. This department includes ! an extensive private label offering.

The Company�� grocery offering focuses on healthy options. The Company carries approximately 4,200 natural and organic products in its grocery aisles, including meal components, natural sodas and other beverages, snacks and bars, baking goods, baby, pet and household items such as detergent and paper towels, and earth-friendly mercantile items. The Company�� Olde Tyme Butcher Shops combine sourcing through its trusted supplier network, product variety and old-fashioned customer service. The Company offers a range of seafood favorites delivered up to six days a week. The Conpany feature a range of fresh deli specialties, including sliced deli meat, salads, dips, entrees, side dishes, fresh made to order sandwiches at value prices and an abundant selection of over 200 varieties of cheeses from around the world.

The Company��bakery offering includes artisan bread alongside a wide assortment of sandwich breads, rolls, tortillas, pitas, muffins, cookies and pies as well as sugar free, gluten free and low carbohydrate products. The Company�� dairy department features a selection of organic, natural and regionally sourced milk, yogurt (including Greek, Australian, organic, and soy-based), butter and eggs, as well as a full selection of vegan and vegetarian alternative dairy products. The Company�� freezer cases feature traditional and ethnic natural and organic entrees and side dishes, along with frozen vegetables, desserts and specialty items, such as gluten-free breads and non-dairy ice creams. The Company offers approximately 2,400 natural, cruelty-free health and beauty products, old-fashioned remedies and modern body care innovations, including facial care products and make up, skin, hair, dental, baby care and grooming products.

Advisors' Opinion:

• [By Teresa Rivas]

  Sprouts Farmers Market (SFM) more than doubled in its trading debut today, jumping to $36.52.

  The organic grocery chain’s initial public offering price was $18, ahead of the $14 to $16 range it had expected, and raised about $333 million.

  Goldman Sachs, Credit Suisse, and Bank of America Merrill Lynch were the lead underwriters of the deal.

  The company operates 163 stores, primarily in the southwestern U.S. Sales surged 113% year-over-year in fiscal 2011 and then 62% last year to $1.79 billion, according to Briefing.com.

  Larger rival Whole Foods Market (WFM) was inching down in recent trading; the company reported fiscal third-quarter earnings after the bell Wednesday.

• [By Leslie Patton]

  Whole Foods is facing increased competition from expanding organic and natural-food sellers including Fairway Group Holdings Corp. (FWM) and Sprouts Farmers Market Inc. (SFM) The chain has been adding more of its 365 private-label brand items to attract price-conscious shoppers. Sales at stores open at least a year rose 5.9 percent in the fourth quarter, which ended Sept. 29, the slowest growth in 15 quarters.

• [By Dan Caplinger]

  In the following video, Dan Caplinger, director of investment planning for The Motley Fool, looks at whether the IPO market is overheating once more. Dan points to some huge gains from recent IPOs, with FireEye (NASDAQ: FEYE  ) rising 80% in its first day while Rocket Fuel (NASDAQ: FUEL  ) and Foundation Medicine (NASDAQ: FMI  ) both posted gains of between 90% and 100%. Dan also highlights Sprouts Farmers Market� (NASDAQ: SFM  ) , which climbed a whopping 123% in its first day as a public company.

• [By Jon C. Ogg]

  Sprouts Farmers Market Inc. (NYSE: SFM) and The Fresh Market Inc. (NYSE: TFM) were both started with Buy ratings at Deutsche Bank.

  Tidewater Inc. (NYSE: TDW) was started as Buy at Wunderlich Securities.

Hot Food Stocks To Watch For 2015: Nestle SA (NESN)

Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd. Advisors' Opinion:

• [By Corinne Gretler]

  Swiss stocks fell for a second day, their first back-to-back losses this month, as Nestle (NESN) SA retreated after reporting slower growth in sales.

• [By Chad Fraser]

  These are the first significant moves made by the Caira, a former executive at Nestle SA (NYSE: NESN) who helped expand that company’s hot and cold beverage division.

Hot Food Stocks To Watch For 2015: Sysco Corporation(SYY)

Sysco Corporation, through its subsidiaries, distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. The company offers a line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats, custom-cut fresh steaks, other meat, seafood, and poultry; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products, such as disposable napkins, plates, and cups; tableware, which include china and silverware; cookware comprising pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. In addition, the company offers personal care guest amenities, equipment, housekeeping supplies, room accessories, and textiles to the lodging industry. It serves restaurants, hospitals and nursing homes, schools and colleges, hotels and mote ls, lodging establishments, and other foodservice customers. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Sysco (NYSE: SYY) shares tumbled 1.97 percent to $34.39 after the company reported a drop in its fiscal second-quarter earnings.

  Mattel (NASDAQ: MAT) was down, falling 4.24 percent to $36.24 after B. Riley & Co downgraded the stock from Buy to Neutral and lowered the target price from $55 to $41.

• [By Holly LaFon]

  The disciplined investors at Yacktman Funds have stuck with the world�� highest quality businesses, most of which offer products or services integral to society. Their top holdings are PepsiCo (PEP), News Corp Cl. A (NWS), Procter & Gamble (PG), Microsoft (MSFT), C.R. Bard (BCR), Cisco Systems (CSCO), Sysco Corporation (SYY), Coca-Cola (KO), Pfizer (PFE) and U.S. Bancorp (USB).

Hot Food Stocks To Watch For 2015: Barry Callebaut AG (BARN)

Barry Callebaut AG is a Switzerland-based producer of cocoa, chocolate and confectionery products. The Company�� manufacturing process involves all stages of the cocoa and chocolate value chain from the sourcing of raw materials to the delivery of the finished products. The Company operates three geographical segments, including Europe, Americas and Asia-Pacific, as well as its business segment Global Sourcing & Cocoa. The Global Sourcing & Cocoa business segment is responsible for the procurement of ingredients for chocolate production, including mainly cocoa, as well as sugar, dairy and nuts as common ingredients, as well as the Company's cocoa processing business. The Company serves the food industry, from industrial food manufacturers to professional or artisanal users of chocolate. The Company operates more than 50 chocolate and cocoa factories, and is present in over 30 countries. Advisors' Opinion:

• [By Sofia Horta e Costa]

  Elan Corp. jumped 8.4 percent in Dublin after authorizing the process of its sale. Hochtief AG gained the most in four months after the German builder said it will buy as much as 260 million euros ($346 million) of its own shares. Michelin & Cie, Europe�� largest tiremaker, added 4.7 percent after data on its website showed tire demand surged in Brazil last month. Barry Callebaut AG (BARN) lost 3.4 percent after the maker of bulk chocolate sold about $302 million of new shares.

Hot Food Stocks To Watch For 2015: H.J. Heinz Company (HNZ)

H. J. Heinz Company manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. The company primarily offers ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition, and other food products. It sells its products through its sales organizations, independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience stores; bakeries; pharmacies; mass merchants; club stores; foodservice distributors; and institutions, including hotels, restaurants, hospitals, health-care facilities, and government agencies. The company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

Advisors' Opinion:

• [By Rich Duprey]

  Companies have been experimenting for some time with using their label for further imprinting their brand on our brains. H.J. Heinz (NYSE: HNZ  ) offers up personalized ketchup bottles, but they're more of a limited-run novelty. It also more broadly offers other labels with witty or pithy sayings on them, more reminiscent of Dr. Pepper Snapple Group's fun facts found under their bottle caps than something that would allow a person to identify with a product.

• [By Rich Duprey]

  Ketchup maker H.J. Heinz (NYSE: HNZ  ) has received all regulatory approvals necessary for the $28 billion acquisition by Berkshire Hathaway (NYSE: BRK-B  ) and an investment fund affiliated with 3G Capital, and plans for the deal to close on or about June 7, the company announced today.

Stock Market's Fed Freak-Out Continues

Stock markets tumbled today as investors sold Federal Reserve Chairman Ben Bernanke's talk of tapering bond-buying. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) crashed at the open of trading and is down a full 351 points, or 2.32%, as of 3:25 p.m. EDT. The S&P 500 (SNPINDEX: ^GSPC  ) has lost 2.5% of its value.

Tapering is the code word investors are using for the Fed's slowing-down of its $85 billion-per-month bond-buying program intended to keep interest rates low and goose the economy. Bernanke didn't give a timetable for this tapering, but he said the Fed could slow buying later this year, and there's speculation that the program could end entirely next year. 

Before you go selling every stock you own to buy rations for your economic bomb shelter, remember why the Fed would slow bond purchases. The Fed started the program to keep long-term interest rates low and encourage investors to bid up stocks and prompt businesses to borrow money to expand. The ultimate goal was that the money would trickle down into the economy in the form of lower unemployment. It's the Fed's view that unemployment is slowly falling and that it will soon be time to take off the training wheels and allow the economy to operate with fewer stimuli.

So the Fed would taper bond-buying because the economy is doing well -- not the opposite. For long-term investors, that's great news, although we'll likely see more daily fits and starts on Wall Street. Look at these as buying opportunities, because the Fed is actually bullish on the state of the economy, and you should be, too.

The market freak-out has sent all 30 Dow components lower today, but two stocks have been hit particularly hard. Intel (NASDAQ: INTC  ) is down 3% today, but it's just beginning to gain traction in the mobile market, and with 14 nanometer chips due out next year, it could be a big winner in smartphones as well. The stock trades at just 12 times trailing earnings, and a 3.6% dividend yield is better than 10-year Treasuries and provides great upside for investors.

The other stock to take note of is Disney (NYSE: DIS  ) , which is down 3.5% today. If the Fed is right and the economy is improving, that's great news for Disney, because more people will shell out to see its movies and attend its theme parks. Yesterday, I highlighted why I think Disney is still in prime position to grow despite a changing media environment, and that thesis only gets better if the economy improves.

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

The market can go crazy on a daily basis, and keeping a cool head is critical on days like this. The sell-off was caused by the Fed, but the Fed is bullish on the economy. For investors, that's great news -- no matter what Mr. Market says today.

Harsh Weather Hurt DuPont’s Q1

DuPont (DD) slipped on Thursday after its first quarter missed analysts' estimates.

The conglomerate said it earned $1.44 billion or $1.54 a share; excluding one-time items, per-share earnings were $1.58 a share, up two cents from the year-ago period but a penny below the $1.59 consensus.

Revenue slipped 2.7% to $10.1 billion, also below the $10.45 analysts were expecting.

The company noted that the extraordinarily harsh winter in many parts of the country hurt the results, to the tune of seven cents a share, as farmers delayed buying seeds and other agricultural products. Political uncertainty also disrupted sales in Ukraine, one of the world's largest corn and wheat exporters.

S&P Capital IQ's Christopher Muir was downbeat about the prospect of DuPont's outlook improving in the near term, lowering his rating on the stock to Sell from Hold, and lowered his target price by $1 to $64. "We negatively view the 3.4% year-over-year drop in sales, though the drop was more than offset by strong cost control efforts. Q1 recurring EPS of $1.58, vs. $1.56, missed our $1.76 estimate and the $1.59 Capital IQ consensus. The shares are yielding 2.7%.

By contrast, Citigroup's P.J. Juvekar reiterated a Buy rating and $78 price target, noting that the company executes as well as could be expected in poor weather conditions, and that its full-year guidance and share repurchase plan are positives: "DD reported 1Q14 EPS of $1.58 vs. our $1.56 and consensus of $1.58. The company explicitly called out a 7c/share impact from adverse weather conditions in 1Q, reflecting a combination of higher operating costs and lost sales. 2014 EPS guidance of $4.20-$4.45 was reaffirmed, with an estimated 70% of FY14 EPS expected in 1H. DD repurchased ~$1B of stock in 1Q, more than we anticipated, and is well-positioned to complete the targeted $2B of stock this year. The Perf Chemicals separation is on track for mid-2015, with physical separation of manufacturing sites underway and initial regulatory filings expected in 4Q14."

Don’t Bet Against Warren Buffett

To many investors, Warren Buffett is over the hill. At 83, they say, he has lost more than a few steps. Over the past five years, the Class B shares of Berkshire Hathaway (BRK.B), the sprawling conglomerate he presides over, returned an annualized 14.8%—an average of 3.9 percentage points per year less than Standard & Poor's 500-stock index. There's nothing cutting edge about the insurance companies, railroads and utilities Berkshire owns. What's more, when Buffett leaves Berkshire, who will manage the company?

See Also: Dividends from Berkshire? Not on Buffett's Watch

To all that skepticism, Matthew Coffina, editor of Morningstar Stock Investor, says, essentially, "nuts." I couldn't agree with him more.

Sure, Berkshire's stock will lag in powerful markets, as it has in the current one. But Coffina says Berkshire will handily beat the S&P 500 in flat and down years. Overall, he predicts that Berkshire will return roughly 10% annually over the next ten years, and that should easily outpace the S&P 500.

Coffina has made Berkshire the largest position—10.9%—in his newsletter's model "tortoise" portfolio. (The newsletter also has a "hare" portfolio, which consists of slightly more-volatile stocks.) At its current price of $122, Berkshire shares are $21 below Morningstar's $143-per-share estimate of Berkshire's fair value. With so few stocks selling below what Morningstar analysts consider to be fair value, Berkshire looks like a steal. (Unless otherwise noted, prices and returns are as of April 11.)

Berkshire's long-term record is astounding. Berkshire high-priced Class A shares have returned an annualized 20.7% since Buffett took over the company in 1965. That's more than double the return of the S&P 500. Ancient history? Since October 9, 2007, just as the catastrophic 2007-09 bear market was getting under way, Berkshire has returned an annualized 6.3%, an average of 1.7 percentage points better than the S&P index. (Berkshire's Class B shares came into existence in 1996.)

But Buffett doesn't focus on share price as much as he does on book value (assets minus liabilities), his preferred method of figuring his company's performance. From 1965 through the end of 2013, Berkshire's book value has compounded at an average annual rate of 19.7%. That said, Buffett believes that book value underestimates the "intrinsic," or true, value of his company by a "meaningful amount." He has said that Berkshire, which is awash in cash, will buy back shares when they fall to 120% of book value, or about $108.

Buffett's buyback plans, Coffina says, "put a psychological floor under the stock, not that far below where we are currently."

Perhaps the biggest question on the minds of Berkshire shareholders is who will replace Buffett and Vice Chairman Charlie Munger, who are both in their 80s, when they leave the scene. Buffett has hired two talented stock pickers, Ted Weschler and Todd Combs, to manage Berkshire's massive stock portfolio; each already manages $7 billion worth of Berkshire assets. The bigger issue will be who runs the rest of the company. Buffett and the Berkshire board say they have a plan in place and have identified potential successors, but haven't disclosed any names yet.

No doubt Berkshire's price will plunge when Buffett announces his retirement or dies. But Coffina says Buffett is "taking the right steps to ensure that Berkshire's culture endures." He adds: "Berkshire has assembled a unique collection of businesses with solid management, sustainable competitive advantages and the ability to compound intrinsic value for years to come."

Buffett likes to say that he stays within his "circle of competence" when buying stocks or entire companies. That has led him to avoid technology altogether. The empire he has built contains an enormous number of companies in a variety of businesses.

Top Cheapest Stocks To Invest In Right Now

Berkshire's "crown jewels," says Coffina, are in its insurance businesses: Geico and reinsurers General Re and Berkshire Hathaway Reinsurance. Berkshire's financial strength gives it the capital to underwrite risks that most firms can't—or won't—touch. Coffina says Berkshire's underwriting discipline and investing discipline distinguish it from competitors.

The insurance businesses allow Buffett to invest money during the often lengthy period after premiums are received but before claims must be paid out to policyholders. This "float" now stands at $77 billion.

Outside of insurance, Berkshire owns the Burlington Northern Santa Fe railroad and utility MidAmerican Energy, in addition to a hodgepodge of other businesses. Among the more recognizable names: Fruit of the Loom, Benjamin Moore paints, Shaw carpets, Dairy Queen and Clayton Homes.

To get a sense of just how sprawling Berkshire is, the 30-plus newspapers it owns represent no more than a rounding error in the company's $222 billion book value.

Coffina puts it well: "Berkshire's existing businesses can stand on their own. Although I think management will continue to add value for shareholders through new acquisitions and investments, this isn't necessary for Berkshire to be a worthwhile holding."

Plus, of course, Berkshire has major stock holdings in such companies as American Express (AXP), Coca-Cola (KO), International Business Machines (IBM) and Wells Fargo (WFC).

My bottom line: Buffett is to investing as Albert Einstein was to physics. Buffett may well be past his prime, but Einstein was a pretty smart old man, too.

Steve Goldberg is an investment adviser in the Washington, D.C., area.

These 3 American Giants Had Very Different Days

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was down 98 points early in the Tuesday afternoon trading session. The Consumer Price Index ticked up 0.2% in March, slightly higher than the expected 0.1% boost, driven by shelter and food prices. Overnight, Japanese markets were up, while Europe saw flat-to-moderate weakness across the continent's stock exchanges.

Domestically, headlines again revolved around earnings as the markets entered the heart of the first-quarter releases.

Big names report earnings on Tuesday
Johnson & Johnson  (NYSE: JNJ  ) reported fantastic numbers before the bell, beating analyst expectations on revenue and earnings. Earnings were particularly strong, rising 35%, primarily on the back of the company's pharmaceutical division. The stock opened the trading session up over 2% but retreated to a 1.1% gain as of 1 p.m. EDT. 

Also delivering fresh earnings numbers Tuesday was Coca Cola (NYSE: KO  ) , the largest beverage company in the world. In recent quarters, Coke has been pressured by falling revenue primarily linked to declining demand in the U.S. In its latest quarterly report, though, Coke beat analyst expectations for revenue. 

However, revenue and earnings were still down. In other words, it's not good news, it's just better than everyone anticipated That was good enough for Wall Street, as the company's stock was up 3.5%..

A Coca Cola advertisement in Rio de Janeiro.

The existing big-picture trends largely continued for Coke, with the U.S. unit lagging more than its foreign sales could mitigate. Consumers have moved away from carbonated drinks, particularly diet carbonated drinks. That's bad news for Coca Cola's second biggest brand -- Diet Coke. I've written that four particular countries are the key to Coke's future, and the first quarter supported that long-term thesis.

General Electric might pivot philosophy on CEO tenure
While Coke and Johnson & Johnson investors celebrated Tuesday morning, General Electric (NYSE: GE  )  shareholders had more complicated news to digest.

Rumors swirled that CEO Jeff Immelt might choose to leave his leadership position earlier than the anticipated 20 years.

Speculation immediately began on who might replace Immelt, but the more interesting question may be why 20 years was ever considered the standard at GE in the first place.

Former GE CEO Jack Welch

Even at GE, the precedent for that long tenure is thin. Yes, legendary CEO Jack Welch held the position for two decades, but Welch was a singular leader with endless energy, passion, and vision. Reginald Jones, the General Electric CEO prior to Welch, only served nine years, the same length as Jones' predecessor Fred Borch.  Even at a company with GE's depth of management talent, it would take lightning striking twice to successfully hire two Jack Welch-level CEOs. 

The conglomerate has had 11 CEOs in its history, and five have served longer than 13 years. But since 1945, only Welch has served 20 years.

Immelt, now in his 13th year as CEO, has led the company through some extremely trying times. The terrorist attacks of Sept. 11, 2001, devastated the company's airline and reinsurance businesses just four days into his leadership term. The financial crisis also nearly brought the entire company down due to risk-taking in GE Capital. The company during those 13 years was also forced to cut its dividend and lost its AAA credit rating. 

GE data by YCharts.

Fortunately, GE has a long list of both young and seasoned executive talent fully capable of leading the company into the next chapter. The stock is up 36% over the past 24 months, and the post-financial crisis transition away from GE Capital appears to be going smoothly. 

General Electric's stock was largely unchanged Tuesday morning on the news, and perhaps rightly so. The company has always taken the long view, and all indications are that GE will continue to be a leader of American business for the next 20 years -- whether headed by Jeff Immelt or another of GE's talented managers.

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