As 2013 rolls to a close, energy will end up being one of the underperforming S&P 500 sectors in what largely has been a tremendous year for investors. While some stocks disappointed, the energy team at Merrill Lynch are actually reasonably positive about the sector for 2014. They do not see a total collapse in West Texas Intermediate (WTI) crude due to oversupply, and they anticipate fairly firm pricing for natural gas. Their average price forecast for WTI is $92. For natural gas, they expect $3.90 per MMBtu.
In a new research report, Merrill Lynch analysts�have a list of some specific energy sector themes they expect to play out over the course of the coming year. We picked the themes that may have the largest effect on investors.
Theme 1: Rising self-sufficiency in the Northeast gas market could have big implications for the entire market. With the price of gas likely to remain in a narrow range next year, Merrill Lynch�suggests investors buy high-quality, large resource-based stocks. The analysts have two top names to buy.
Top 10 High Tech Companies To Buy For 2015: 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.
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.
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.
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.
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.
Top Quality Stocks To Watch For 2014: American Capital Mortgage Investment Corp (MTGE)
American Capital Mortgage Investment Corp., incorporated on March 15, 2011, is a real estate investment trust (REIT). The Company�� investment objective is to provide risk-adjusted returns to its investors over the long-term through a combination of dividends and capital appreciation. It invests to achieve this objective by selectively constructing and managing a mortgage investment portfolio consisting of asset classes that, when properly financed and hedged, are designed to produce risk adjusted returns across a variety of market conditions and economic cycles. In December 2013, American Capital Mortgage Investment Corp, through its subsidiary acquired Residential Credit Solutions, Inc.
The Company is externally managed and advised by American Capital MTGE Management, LLC. American Capital MTGE Management, LLC is an indirect subsidiary of American Capital, LLC, which is a wholly portfolio company of American Capital, Ltd.Advisors' Opinion:
- [By Matt Koppenheffer and David Hanson]
After an incredible run-up this year, the broader market trend was downward this week, to the tune of 1.6%, but some of the stocks out there were hit particularly hard. In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson take a look at what was behind three big dives this week:�National Bank of Greece� (NYSE: NBG ) ,�Newcastle Investment� (NYSE: NCT ) , and�American Capital Mortgage Investment� (NASDAQ: MTGE ) .�
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT American Capital Mortgage Investment (NASDAQ: MTGE ) has earned a coveted five-star ranking.
- [By Dan Caplinger]
But those fears continued to expand in the second quarter, and the bond market finally made significant moves that hurt bond prices and sent yields soaring. In response, many mortgage REITs expanded their purview to go beyond their traditional agency-backed securities. Annaly Capital (NYSE: NLY ) , for instance, started adding securities backed by commercial mortgages, while Armour Residential (NYSE: ARR ) set the stage for a shift by changing its charter to allow non-agency purchases. But because American Capital Agency has a sister REIT, American Capital Mortgage (NASDAQ: MTGE ) , that has a broader scope, CIO Gary Kain plans to keep American Capital Agency's investing strategy true to its name by staying focused on agency-backed bonds.
- [By Rich Duprey]
Mortgage REIT�American Capital Mortgage (NASDAQ: MTGE ) announced yesterday its second-quarter dividend of $0.80 per share, an 11% decrease from the payout it made to investors last quarter of $0.90 per share.
Top Quality Stocks To Watch For 2014: Pampa Energia S.A.(PAM)
Pampa Energia S.A., through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina. It has an installed hydro electricity generation capacity of approximately 2,217 megawatts. The company also joint-controls the operation and maintenance of the high-tension transmission network covering 10,613 kilometers (km) of own lines, as well as 6,110 km of high-tension lines belonging to Empresa de Transporte de Energ� El�tricapor Distribuci� Troncal de la Provincia de Buenos Aires Sociedad An�ima Transba S.A. It distributes electricity to approximately 3.5 million residential, commercial, and industrial customers. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energia S.A. in September 2008. Pampa Energia S.A. was incorporated in 1945 and is headquartered in Buenos Aires, Argentina.Advisors' Opinion:
- [By Jake L'Ecuyer]
Leading and Lagging Sectors
In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.46 percent. Top gainers in the sector included PPL (NYSE: PPL), Empresa Distribuidora y Comercializadora Norte SA (NYSE: EDN), and Pampa Energia SA (NYSE: PAM). Telecommunications services sector was the top decliner in the US market on Wednesday.
- [By Garrett Cook]
Utilities shares fell around 0.30 percent in trading on Friday. Top losers in the sector included Pampa Energia SA (NYSE: PAM), revesed loses and is currently up 1.75 percent, and Korea Electric Power (NYSE: KEP), off 3.16 percent.
- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Utilities stocks gained Friday, with Korea Electric Power (NYSE: KEP) leading advancers. Meanwhile, gainers in the sector included Huaneng Power International (NYSE: HNP), with shares up 2.1 percent, and Pampa Energia SA (NYSE: PAM), with shares up 2.5 percent.
- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Utilities stocks gained Thursday, with Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS) leading advancers. Among the leading sector stocks, gains came from Companhia Paranaense de Energia (NYSE: ELP), Pampa Energia SA (NYSE: PAM) and CenterPoint Energy (NYSE: CNP).
Top Quality Stocks To Watch For 2014: Trulia Inc (TRLA)
Trulia, Inc. is a real estate search engine company. The Company helps in finding homes for sale and provides real estate information. The Company is also a tool for real estate professionals to market their listings, view real estate data and promote their services. It provides local information, community insights, market data and national listings. Effective August 20, 2013, Trulia Inc acquired the entire interest of Market Leader Inc.
Trulia.com is an online real estate site focused on buyers, sellers and renters with tools to help them find the right home. The Company�� Website, www.trulia.com, is a search engine for buying and renting homes, advising homes and mortgages. The Company is headquartered in downtown San Francisco and is backed by Accel Partners and Sequoia Capital.Advisors' Opinion:
- [By Shaun Currie, CFA]
Competition in this segment includes Zillow (Z) and Trulia (TRLA). The company differentiates itself from the competition in multiple ways:The focus is on serious customers, defined as those who expect to purchase or sell a home within the next six to eighteen months. ZIPR does not have the reach or traffic that Zillow or Trulia has, but they have a higher conversion rate from users. The company is also known for having the most up-to-date listings in the industry, which improves customer satisfaction with serious customers.The focus is more geared towards real estate agents than the other sites. This allows the company to better foster relationships and convert a higher percentage of users. The company provides a more user-friendly platform that its competition.The platform creates a competitive advantage for the third party users. ZIPR not only helps to generate online leads on their behalf, but also provides them access to an enterprise cloud-based application that better enables them to turn client leads into closed transactions. Zap offers these brokers crystal-clear, real-time visibility on their transaction pipeline, brokerage operations and financials, while facilitating a paperless transaction environment. Because Zap is a cloud-based application, third parties benefit from a rapid innovation cycle without the burden of expensive IT maintenance and software upgrade costs.
We have talked about the inflection point of the company as it restructured its traditional business and launched its software-as-a-service business. Let's now talk more about other catalysts for the stock…
- [By Caroline Bennett]
Zillow a zippy stock?
Even though its P/E looks overvalued, Zillow is still the stock to watch when it comes to online real estate markets. In 2012, the company made $50 million more in revenue than did rival business Trulia (NYSE: TRLA ) . In addition, its spike in advertising dollars could lead to even more traffic, which could interest even more real estate agents and create a solid cycle of sales for the company. It's a buyer's market in the real estate industry, and Zillow has its finger squarely on that market's pulse.
Top Quality Stocks To Watch For 2014: Mazda Motor Corp (MZDAY.PK)Mazda Motor Corporation is a Japan-based company engaged in the manufacture and distribution of automobiles and automobile parts. The Company provides mini vans, compact vehicles, sports cars, sport-utility vehicles, station wagons, sedans, light cars, commercial vehicles, welfare vehicles and special edition automobiles, as well as automobile accessories, including car navigation systems, automobile audio systems, side monitors, rear seat monitors, electronic toll collection (ETC) in-vehicle equipment, security products, driving support products, bulbs, pet carriers and child seats, among others. As of March 31, 2013, the Company had 56 consolidated subsidiaries and 15 associated companies. Advisors' Opinion:
- [By Elliott Gue]
This so-called One Ford initiative involved the US$2.3 billion sale of Jaguar and Land Rover to Tata Motors (TTM) and the US$1.6 billion divestment of Volvo to Geely Automobile Holdings (GELYF.PK). After selling the majority of its stake in Mazda Motor Corp (MZDAY.PK) and discontinuing Mercury, Ford Motor Company's portfolio consists of its eponymous mass-market brand and the higher-end Lincoln.
Top Quality Stocks To Watch For 2014: The AES Corporation(AES)
The AES Corporation, through its subsidiaries, operates as a power company in Latin America, Africa, North America, Europe, the Middle East, and Asia. The company owns and operates two businesses, Generation and Utilities. The Generation business owns and/or operates power plants to generate and sell power to wholesale customers, such as utilities and other intermediaries. It generates electricity through various sources, including coal, gas, fuel oil, biomass, hydroelectric, wind, and solar. The Utilities business owns and/or operates utilities to distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors. As of December 31, 2010, the company owned electricity generation and distribution facilities with a total capacity of approximately 40,500 megawatts and distribution networks serving approximately 12 million people in 28 countries. The AES Corporation was founded in 1981 and is based in Arlingto n, Virginia.Advisors' Opinion:
- [By Seth Jayson]
AES (NYSE: AES ) is expected to report Q1 earnings on May 9. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict AES's revenues will wither -2.4% and EPS will shrink -18.9%.
Top Quality Stocks To Watch For 2014: iShares Russell 3000 Index Fund (IWV)
iShares Russell 3000 Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Russell 3000 Index (the Index). The Index measures the performance of the United States equity market. The Index serves as the underlying index for Russell 3000 Growth and Value Series, and the Russell 1000 and Russell 2000 Indexes, as well as their respective Growth and Value series. The Index is a capitalization-weighted index and consists of the 3000 largest companies domiciled in the United States and its territories.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. iShares Russell 3000 Index Fund's investment advisor is Barclays Global Fund Advisors.Advisors' Opinion:
- [By John Maxfield]
Over the past five years, this ETF has beaten the Dow Jones Industrial Average (DJINDICES: ^DJI ) by 23 percentage points. It's outperformed the Russell 3000 (NYSEMKT: IWV ) by 21 percentage points. And it's done the same to the eponymous S&P 500, exceeding it by 11 percentage points.