(HMN) - Horace Mann Educators - beat the Street's earnings estimate in eight out of the past 10 quarters by an average of 25.5%

Horace Mann Educators Corporation (HMN) exceeded analysts' earnings expectations in eight out of the past 10 quarters, most recently by 28.9%. Solid results for the first half of 2006 prompted the company to boost its full-year earnings per share guidance. Consensus estimates have been trending higher for this Zacks #1 Rank stock. HMN has a price-to-book ratio of only 1.5, compared to 5.2 for the market. The company is currently yielding 2.2%. Full Analysis Horace Mann Educators Corporation is the largest multiline insurance company focusing on the nation's educators and their families. The company aims to provide lifelong financial well-being for educators and their families through personalized service, advice, and a full range of tailored insurance and financial products. HMN beat the Street's earnings estimate in eight out of the past 10 quarters by an average margin of 25.5%. In seven of those eight quarters it was able to produce a double-digit earnings surprise. Earnings per share grew 20.4% over the past five years. On Aug 2, the company crushed the consensus estimate by 28.9% when it posted second-quarter earnings per share of 58 cents. Analysts were calling for profits of 45 cents per share. HMN is expected to release its third-quarter results on Nov 2. Citing strong results for the first half of the year, HMN revised its full-year earnings per share outlook. The company now expects earnings per share between $1.80 and $1.95. HMN's previous guidance called for profits between $1.65 and $1.80 per share. President and Chief Executive Officer Louis G. Lower II stated, “This projection anticipates continued favorable property and casualty loss trends, while remaining appropriately cautious regarding potential catastrophe losses in the second half of the year.” The company has successfully grown profits for three years running, most recently by 37.3% in 2005. The consensus estimate for this quarter increased substantially over the past seven days. Analysts are expecting 52 cents per share, which marks a 62.5% increase when compared to the consensus just a week earlier. For the full year, profit forecasts jumped 9.0% to $2.07 over the same period of time. The Board of Directors declared a quarterly dividend of 10.5 cents per share on Sep 12. The company has a current dividend yield of 2.2% and a five-year average dividend yield of 2.5%. HMN is currently trading at a valuation of 13.9x trailing 12-month earnings and at 9.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.1x trailing 12-month earnings and at 16.1x its current fiscal-year estimated earnings. The company has a price-to-book ratio of only 1.5, compared to 5.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: HMN, Horace Mann Educators, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks, earnings, analysts, analysts estimates

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(PVH) - Phillips-Van Heusen Corporation - Over the past 12 quarters, the company beat the Street's estimate by an average margin of 16.3%

Phillips-Van Heusen Corporation (PVH), which was first presented as a Growth and Income pick on Jan 17, continues to beat analysts' earnings expectations. In fact, it has done so for 12 consecutive quarters. Furthermore, consensus estimates continue to climb higher. As a result, the company is a Zacks #1 Rank stock. PVH raised its full-year earnings per share guidance in late August. The company's return on equity more than triples that of the industry average. Full Analysis Phillips-Van Heusen Corporation is an apparel company that designs and markets branded dress shirts, sportswear, footwear and other related products. The company's portfolio of brands includes its own brands, as well as its licensed brands. PVH was first highlighted as a Growth and Income pick on Jan 17. At the time, the company held the coveted status of a Zacks #1 Rank stock. Thanks to exceeding analysts' earnings expectations, coupled with profit forecasts trending higher, PVH is still rated a strong buy. One would have to go all the way back to the second quarter of 2003 to find an occasion in which PVH failed to produce a positive earnings surprise. Over the past 12 quarters, the company beat the Street's estimate by an average margin of 16.3%. Earnings per share grew 23.2% over the past five years. On Aug 23, PVH posted second-quarter profits of 53 cents per share. With analysts calling for 47 cents, the company surprised by 12.8%. Compared to the prior-year period, earnings ballooned 23.3%. Revenues jumped 3.5% to $458.9 million. The company said revenue growth was fueled by a 13% increase in the Calvin Klein Licensing business and the continued strong performance of its outlet retail business and wholesale sportswear business. Profits and revenues for the first six months of the year rose 60.2% and 5.4%, respectively, when compared to the first six months of 2005. PVH increased revenues for the past three years and expanded gross margins for the past eight. For the full year 2006, PVH upped its earnings per share guidance to between $2.46 and $2.50. The company's previous outlook called for profits between $2.32 and $2.37 per share. Earnings per share are forecasted to grow 17% over the next 3-5 years, with the industry expected to grow at a 15% clip. Consensus estimates have been on the rise. Profit forecasts for this quarter increased 7.9% to 82 cents over the past 60 days. Estimates for the full year are up 5.9% to $2.51 over the same period of time. Five analysts submitted upward revisions for both this quarter and for the full year. PVH's return on equity more than triples that of the industry average—22% compared to 7%. The company has a five-year average dividend yield of 1.8%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: PVH, Phillips-Van Heusen Corporation, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks, earnings, analysts, analysts estimates

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(ESLR) - Evergreen Solar - Two analysts have raised their numbers for this year while one has done so for next year

Evergreen Solar has exceeded earnings estimates in each of the past three quarters by an average of 20%. Two analysts have raised their numbers for this year while one has done so for next year. ESLR is still losing money, but next year's estimates have increased 12.5% to a loss of 14 cents per share over the past month. Full Analysis Evergreen Solar, Inc. (ESLR) engages in the development, manufacturing, and marketing of solar power products worldwide, including solar cells, panels, and photovoltaic systems. The company, through its crystalline silicon technology known as String Ribbon, offers solar modules which are used to generate electricity for on-grid and off-grid applications. These modules are designed for a range of solar electric power applications, including water pumping, communications, outdoor lighting, rural electrification, recreational vehicles, and stand-alone or grid-connected AC applications. The company sells its products through distributors, system integrators, and other value-added resellers. Evergreen Solar's business strategy is to develop, manufacture, and market solar power products that use the company s photovoltaic technologies in commercial applications around the world. The company remains focused on maintaining its technology leadership through continuous innovation, expanding its market reaches through strategic partnerships, lowering its manufacturing costs and increasing capacity, concentrating on higher growth areas of the solar market where it perceives the greatest competitive advantage, and diversifying and differentiating its product lines. According to Zacks Equity Research Analyst Jon Kolb, the company has a number of promising technologies under development to reduce the variable costs of producing solar panels. At its Marlboro, Massachusetts plant, Evergreen seeks to enhance its thin ribbon manufacturing process. ESLR's progress on 150mm thin ribbon wafers, which reportedly uses 50% less silicon than the current 300mm wafers, is an important competitive advantage, as ESLR already uses about 35% less silicon than its primary crystalline competitors. This should further help to enhance the company's cost leadership. The company has exceeded earnings estimates in each of the past three quarters by an average of 20%. Two analysts have raised their numbers for this year while one has done so for next year. ESLR is still losing money, but next year's estimates have increased 12.5% to a loss of 14 cents per share over the past month. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: ESLR, Evergreen Solar, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks, earnings, analysts, analysts estimates

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(SPIL) - beat analysts' earnings expectations for five straight quarters by an average margin of 23.9%

Siliconware Precision Industries Co., Ltd. (SPIL) topped analysts' earnings expectations for the past five quarters by an average margin of 23.9%. Profits and revenues for the second quarter and first six months of 2006 were solid. This Zacks #1 Rank stock has a price-to-book ratio of 2.5, compared to 5.2 for the market. SPIL has a PEG ratio of 0.44 and is currently yielding 4.1%. Full Analysis Siliconware Precision Industries Co., Ltd., based in Taiwan, offers semiconductor packaging and testing services to the semiconductor industry for applications in communications, computing, consumer, automotive and industrial end markets. SPIL beat analysts' earnings expectations for five straight quarters by an average margin of 23.9%. During this period of time, double-digit earnings surprises were achieved on four occasions. On Jul 26, the company posted second-quarter profits of 20 cents per share, which beat the Street's estimate by a solid 25.4%. Compared to the prior-year period, earnings skyrocketed 150.0%. Revenues came in at NT$ 13,640 million (US$ 425 million), up 1.5% sequentially from NT$ 13,439 million (US $417 million) and up 50.9% year over year. SPIL is expected to release its third-quarter results on Oct 24. For the first six months of the year, SPIL reported revenues of NT$ 27,080 million, up 59.1% compared to the first six months of 2005. Profits ballooned to NT$ 6,316 million, compared with NT$ 2,488 million achieved in the prior-year period. SPIL increased revenues, expanded gross margins and grew profits for the past three years. Growing cash flows from operating activities have enabled SPIL to pay a cash dividend of NT$ 1.66. The company is currently yielding 4.1%. SPIL is currently trading at a valuation of 8.8x trailing 12-month earnings and at 8.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.1x trailing 12-month earnings and at 16.1x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.5, compared to 5.2 for the market. Earnings per share are forecasted to grow 20% over the next 3-5 years. The industry is projected to grow at an 18% clip. Taking SPIL's expected growth rate into account, its PEG ratio currently resides at 0.44. The company has a return on equity of 31%, compared to the industry average of negative 18%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: SPIL, Siliconware Precision Industries, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks, earnings, analysts, analysts estimates

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(ACE) - Consensus estimate for this quarter currently sits at $1.58. When compared to the consensus 60 days earlier, it has risen 7.5%

ACE limited (ACE) exceeded analysts' earnings expectations in 12 out of the past 14 quarters, most recently by 10.8%. Earnings per share are projected to grow 12% over the next 3-5 years. The Board of Directors declared a quarterly cash dividend of 25 cents per share on Aug 18. ACE has a current dividend yield of 1.8% and a five-year average dividend yield of 1.9%. Full Analysis ACE Limited, the Bermuda-based holding company of the ACE Group of Companies, provides a range of insurance and reinsurance products to insureds through operations in more than 50 countries around the world. ACE has been a rather dependable company when it comes to exceeding analysts' earnings expectations. Over the past 14 quarters, the company topped the Street's estimate on 12 occasions by an average margin of 8.9%. On Jul 25, ACE posted second-quarter profits of $579 million, or $1.74 per share, compared with $443 million, or $1.50 per share, in the prior-year period. With analysts expecting $1.57, the company surprised to the upside by 10.8%. Net premiums written jumped 6%, while net premiums earned advanced 1% when compared to the second quarter of 2005. President and Chief Executive Officer Evan Greenberg stated, “This was another excellent quarter for ACE, marked by both record net and operating income.” With fewer hurricanes this year, and with forecasters revising their predictions, ACE may be poised for a better-than-expected third quarter. This compares to the last two years when seven major storms led to 5.5 million claims and more than $80 billion in insured losses, according to the Insurance Information Institute. The company is expected to release results for the third quarter on Oct 25. The consensus estimate for this quarter currently sits at $1.58. When compared to the consensus 60 days earlier, it has risen 7.5%. Profit forecasts for the full year increased 13 cents to $6.57 over the same period of time. Four analysts boosted their estimates for this quarter while five did so for the full year. Earnings per share are projected to grow 12% over the next 3-5 years—in line with the expected growth rate of the industry. The Board of Directors declared a quarterly cash dividend of 25 cents per share on Aug 18. The current dividend was increased by 8.7% from 23 cents per share in mid May. The company has a current dividend yield of 1.8% and a five-year average dividend yield of 1.9%. ACE is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: TICKER, ACE Limited, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks, earnings, analysts, analysts estimates

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(KSS) - "We also made great progress on our share repurchase program, buying over $1 billion of our stock during the quarter."

Kohl's Corporation has met or exceeded earnings estimates in 10 out of the past 11 quarters. Ten analysts have raised their numbers for both this year and next. Over the past two months, this year's estimates have jumped 5% to $3.17 per share. The stock is trading at 18.6x next year's estimates, slightly higher than the company's long-term growth rate of 17.82%, giving the stock a PEG ratio of 1.05. Full Analysis Kohl's Corporation (KSS) operates specialty department stores in the United States. Its stores sell apparel, footwear, accessories, and beauty products for women, men, and children, as well as soft home products, such as towels, sheets and pillows, and housewares. As of March 13, 2006, the company operated 741 stores in 41 states. The stock recently got a boost after the company said same-store sales -- or sales at stores open at least a year, a closely watched measure of retail performance -- rose 16.3 percent in September. Kohl's also boosted its third-quarter profit-per-share forecast to a range of 56 cents to 59 cents, from previous guidance of 53 cents to 56 cents. "All regions of the country experienced double-digit comparable store sales increases for the month," Larry Montgomery, Kohl's chairman and chief executive, said in a statement. "We are experiencing healthy increases in both transactions per store and average transaction value." Similarly, the company reported strong second-quarter earnings in mid-August. Income for the quarter ended July 29 was $232.4 million, or 69 cents per share, compared with $187.2 million, or 54 cents per share, a year earlier. Net sales rose 14 percent to $3.29 billion from $2.89 billion, while same-stores sales grew 5.5%. Analysts had expected 65 cents per share in earnings. "We achieved improvement in our gross margin rate and experienced significant expense leverage on our sales increase," said Larry Montgomery, Kohl's chairman and chief executive. "We also made great progress on our share repurchase program, buying over $1 billion of our stock during the quarter." KSS has met or exceeded earnings estimates in 10 out of the past 11 quarters. Ten analysts have raised their numbers for both this year and next. Over the past two months, this year's estimates have jumped 5% to $3.17 per share. The stock is trading at 18.6x next year's estimates, slightly higher than the company's long-term growth rate of 17.82%, giving the stock a PEG ratio of 1.05. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: KSS, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks

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(FE) - The consensus estimate for 2006 currently resides at $3.84, and represents upward revisions by three analysts over the past 60 days

FirstEnergy Corp. (FE), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 11 out of the past 12 quarters by an average margin of 10.5%. The company raised its full-year 2006 earnings per share guidance in early August. Consensus estimates for this year and next have been on the rise. FE has a price-to-book ratio of 2.0, compared to 5.2 for the market. The company has a current dividend yield of 3.2%. Full Analysis FirstEnergy Corp. is a diversified energy company in the United States that is engaged in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Over the past 12 quarters, FE succeeded in beating the Street's earnings estimate on 11 occasions. During this period of time, the average margin of surprise was 10.5%. The company managed to match the consensus estimate in the one quarter in which it did not surprise. On Aug 1, FE topped analysts' second-quarter earnings expectations by two cents when it posted profits of 94 cents per share. Compared to the 71 cents per share recorded in the prior-year period, the result represented an impressive 32.4% year-over-year improvement. Revenues were down slightly to $2.79 billion from $2.84 billion due to the company's sale of 62% of its interest in MYR Group, a construction services company, earlier this year. Commenting on FE's strong quarter, President and Chief Executive Officer Anthony J. Alexander stated, “The strong performance of our generating fleet enabled us to produce and sell more electricity compared with the same period last year, despite significantly milder weather during the quarter.” The company raised its full-year 2006 earnings per share guidance to between $3.65 and $3.85. Its previous outlook called for profits between $3.45 and $3.65 per share. Analysts responded by bumping up their forecasts. The consensus estimate for 2006 currently resides at $3.84, and represents upward revisions by three analysts over the past 60 days. Looking ahead to next year, revised estimates were submitted by four analysts, with the consensus currently sitting at $4.19. On Sep 19, the Board of Directors declared a quarterly cash dividend of 45 cents per common share of stock. The dividend will be paid on Dec 1, to shareholders of record as of Nov 7. FE is currently yielding 3.2%. The Board also announced on Aug 10 that it repurchased 10.6 million shares, equating to about 3.2% of its outstanding common stock, for an initial price of $600 million. Alexander stated, “This share repurchase, along with the three dividend increases we've implemented over the past two years, are key elements of our ongoing efforts to enhance the value of our shareholders' investment in FirstEnergy.” FE is currently trading at a valuation of 16.7x trailing 12-month earnings and at 14.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.0x trailing 12-month earnings and at 16.0x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 5.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(HLT) - Exceeded analysts' earnings expectations in 12 out of the past 16 quarters by an average margin of 21.8%

Hilton Hotels Corporation (HLT) matched or beat analysts' earnings estimates in 15 out of the past 16 quarters. HLT raised its full-year 2006 revenue and profit guidance in early August. Earnings per share are forecasted to grow 15% over the next 3-5 years. The company's current development pipeline is truly remarkable and represents the largest for any U.S.-based hotel company. HLT has a current dividend yield of 0.55% and a five-year average dividend yield of 0.56%. Full Analysis Hilton Hotels Corporation, along with its subsidiaries, engages in the ownership, management and development of hotels, resorts and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. The company has over 2,800 hotels and 492,000 rooms in more than 80 countries. HLT exceeded analysts' earnings expectations in 12 out of the past 16 quarters by an average margin of 21.8%. Furthermore, the company matched or beat estimates in 15 out of the past 16. Over the past five years, earnings per share grew 19% and are forecasted to grow 15% over the next 3-5 years, in line with the industry average. HLT missed the second-quarter consensus earnings estimate by a penny when it posted profits of 32 cents per share. However, when compared to the 27 cents posted in the second quarter of 2005, earnings represented an 18.5% year-over-year improvement. Renovations at key properties were cited as the reason behind the company's failure to surprise to the upside. Revenues nearly doubled to $2.2 billion from $1.18 billion a year earlier. The company is expected to release its results for the third quarter prior to the opening of the market on Oct 31. HLT added 55 properties and 8,362 rooms in the quarter and expects to add around 225 hotels and 36,000 rooms to its system in 2006. The company's current development pipeline is quite impressive and represents the largest for any U.S.-based hotel company. More than 700 hotels and 100,000 rooms made up the development pipeline as of June 30, 2006, with approximately 90% of the hotels to be built in the Americas. The company raised full-year 2006 outlook in early August and now projects revenues between $8.10 billion and $8.13 billion. Earnings per share are forecasted to come in between $1.17 and $1.21 and between $1.08 and $1.12, excluding items. The consensus estimate for 2006 currently sits at $1.10. On Jul 21, the Board of Directors declared a quarterly cash dividend of four cents per share. HLT has a current dividend yield of 0.55% and a five-year average dividend yield of 0.56%. HLT is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(LIOX) - Over the past two months analysts have adjusted their numbers by 12.5%. Two analysts bumped up their estimates for this year

Lionbridge Technologies exceeded earnings estimates in its latest quarter by 100% and has also seen this year's estimates increase over the past two months. Over that time period, analysts have adjusted their numbers by 12.5%. Two analysts bumped up their estimates for this year. Full Analysis Lionbridge Technologies, Inc. (LIOX) is a leading provider of globalization, testing and application development services that enable customers to create and manage technology applications and enterprise content in various languages. Lionbridge's globalization services include internationalization, software localization, application development, translation, and multilingual content management. The testing services not only assist customers in controlling support costs but they also identify and rectify problems relating to usability of a product. Further, Lionbridge s product certification and benchmark testing services help independent software vendors to verify that their products conform to standards and quality. The company maintains more than 50 solution centers in 25 countries and provides services under the Lionbridge and VeriTest brands. Lionbridge is shifting more work to China and India, where wages are lower, and the company has completed the integration of its India operation. This should help the company grow its bottom line in coming quarters. Recently, Lionbridge added a new solution center in India, and is in the process of hiring 200 developers, test engineers, and project managers. This India expansion should help to further reduce costs. In addition, Lionbridge has acquired a larger, more diverse client base, which should help to smooth out revenue fluctuations, making planning somewhat easier. The company exceeded earnings estimates in its latest quarter by 100% and has also seen this year's estimates increase over the past two months. Over that time period, analysts have adjusted their numbers by 12.5%. Two analysts bumped up their estimates for this year. The stock is relatively thinly traded, but has six analysts following the stock. LIOX is currently trading at 19.6x next year's estimate of 40 cents per share, slightly below the company's projected long-term growth rate of 20%, giving the stock a PEG ratio of 0.98. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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(FRO) - (OMM) - Paul Tracy, StreetAuthority Market Advisor newsletter - direct play on burgeoning global trade is the transportation industry

Paul Tracy, editor of the StreetAuthority Market Advisor newsletter, explains that the most direct play on burgeoning global trade is the transportation industry. More specifically, this featured expert notes that the shipping industry has been doing quite well in recent years. Take a look at two of the plays Tracy details, Frontline and OMI Corporation. FEATURE ARTICLE from October 2 Los Angeles is best known as the center of the global entertainment industry. And certainly, Hollywood's film industry is a global behemoth. But the Southern California city is also host to a lower-profile industry that carries arguably even more importance for the U.S. economy. Specifically, look out over the Pacific Ocean on any given day, and you're likely to see a line of gigantic ships stretching toward the horizon. Most hail from Asia and are headed to the ports of Los Angeles and Long Beach. On an average day last summer, these ports received nearly 24,000 shipping containers -- known as twenty- foot equivalent units -- or TEUs -- loaded with goods ranging from televisions to auto parts to toys. That's about +10% more containers than these two ports handled just one year earlier. You see, the Los Angeles area is a key center of the U.S. container port industry, accounting for as much as 15% of all containers shipped into the U.S. on a given day. And container ship traffic has been growing exponentially since the early 1990s in both Southern California and other key U.S. ports. Of course, consumer goods and container shipping are just one part of global trade -- trade in commodities is every bit as important. For example, U.S. imports of oil total more than 13 million barrels per day, and Chinese crude imports have grown from zero to more than 3.3 million barrels per day since 1992. Furthermore, agricultural products from Brazil and the U.S. feed countries in Asia, Europe, and the Middle East. There are literally thousands of globally traded metals, agricultural products, and energy commodities. Growth in trade should come as little surprise -- just consider the products you use every day. If you're like most Americans, many of the goods you consume are made or produced outside the U.S. Whether you own a Japanese car, an Italian suit, or simply enjoy Chilean avocados in the winter months, you're a participant in global trade. In fact, you may be importing goods without even knowing it. For example, most American cars actually contain significant amounts of foreign- made parts. Plus, the fuel you use to power your car is sourced from all over the globe. And it's not just manufactured products -- that jar of mayonnaise in your refrigerator quite possibly contains palm oil from Indonesia, sugar from Brazil, and eggs from the U.S. And just as you enjoy foreign goods, foreign countries are big consumers of U.S. products. In fact, while America is the world's largest importer, it's also the globe's second largest exporter. American agricultural products, movies, advanced technologies, and a host of other items are exported to countries all over the world. Of course, this isn't just a U.S. centric phenomenon. Consumers around the world are increasingly buying goods sourced from distant corners of the globe. For instance, while most pundits focus on China's growing exports, the nation is also among the world's largest importers. In China, rapid economic growth spells rapidly rising disposable income. This jump in available income has been a factor in Chinese imports, which have increased at an annualized pace of more than +27% over the past four years. And global trade is likely to continue growing. Over the past three decades, most countries in the developed and developing world alike have gradually been reducing barriers to trade. Countries have reduced tariffs on imported goods and eliminated limits on certain exports. Protectionist policies once designed to favor domestic companies over foreign competitors have been softened or dismantled in many cases. While global free trade is still a work in progress, there have been meaningful steps taken to encourage trade and open up markets to outsiders. Moreover, it's cheaper to move goods now than at any time in the past. Before the advent of container shipping in the 1950s and 1960s, shipping goods meant loading individual irregular-shaped items onto a ship. This proved inefficient, as there was no way to move many individual items at once, and securing odd-shaped goods for an ocean voyage took a great deal of time and labor. Nowadays, items are packed into standard 20 or 40-foot long containers that can be stacked neatly on the decks of giant ships. Standardizing containers makes it easier to handle loading, unloading, and bundling cargo from multiple shippers. And the development of ever- larger and more energy-efficient container ships has made it even cheaper to transport items. Rapid growth in global trade and increased efficiency certainly impacts a myriad of industries. Manufacturers can now source parts from all over the world, looking for the best price and quality. And producers of goods and commodities no longer have to sell their wares locally -- it's easy and cheap to load products onto a ship and transport them almost anywhere in the world. But the most direct play on burgeoning global trade is the transportation industry -- companies that physically move goods and commodities from producers to consumers. And when it comes to international trade, most goods and commodities are carried the same way they were two or three centuries ago -- by ship. Companies that own fleets of container ships charge a fee to move all those goods to wherever in the world they are needed. Plus, the big energy companies rent tankers to move oil from the Middle East to the U.S. for refining. Add in the growth of Chinese imports, and you can see why the shipping industry has been doing quite well in recent years. Even better, the global transportation industry offers an attractive one-two punch for investors --solid growth powered by rising trade, coupled with dividend yields that hover close to 10%. Here are two of Paul Tracy and his team's favorite plays on the burgeoning business of trade . . . Frontline (FRO): Major oil companies don't generally own their own fleet of tanker ships. Instead, these firms lease their ships from third-party tanker companies like Frontline. FRO owns a fleet of about 60 tanker ships divided roughly equally between mid-sized Suezmax carriers, which are designed for shorter journeys, and Very Large Crude Carriers (VLCC), which are used to transport crude over long distances. Like most tanker firms, FRO leases its ships under a combination of spot and time charter contracts. Time charter contracts are longer-term contracts at a fixed day-rate -- often charters can be one to five years in duration. Spot rates are short-term agreements cut at the prevailing market day-rate at the time of contracting. Spot contracts offer more upside potential. Meanwhile, time charters offer more stable, predictable rates. The advantage of FRO's balanced contract portfolio is that its spot rate contracts allow it to benefit handsomely during strong tanker markets, while its time charters offer a measure of stability during weak periods. Tanker rates are determined by two main factors: the supply of tankers and demand for crude oil shipping. Demand for crude oil shipping has been growing rapidly in recent years as countries like China import greater quantities of crude oil. China's crude oil demand is set to grow by roughly +6% over the next two years, and that means more demand for oil transport. On the supply front, there are new tankers being built, but that new supply is partly offset by the phase-out of older, single- hull tankers. Single-hull tankers are more prone to spills, and international agreements schedule all single-hull ships to be phased out over the next five years. Many major energy producers have already decided to lease only double-hull ships -- well ahead of international deadlines. While tanker rates are volatile and seasonal, strong demand and weak supply growth has spelled a gradual rise in rates since the beginning of the decade. With rates at current levels, FRO is a highly cash flow positive business. This strong cash flow generation allows FRO to pay impressive dividends. Specifically, management has targeted a goal of paying out at least $2.50 per share in dividends, equivalent to a 6.7% yield. But with day-rates running above average, FRO has actually been exceeding that target handily, paying an annualized yield closer to 16% this year. With this in mind, FRO remains a core member of our Income Portfolio. OMI Corporation (OMM) operates a fleet of 46 tanker ships. The company operates 13 mid-sized Suezmax tankers and another 33 so-called product carriers. Product carriers generally do not carry crude oil -- instead these ships are designed to carry refined products like jet fuel, gasoline, or diesel. The product carrier business is a compelling growth market. No new refineries have been built in the U.S. since 1976. Meanwhile, over the past 30 years, demand for refined products has grown significantly. Environmental regulations and local opposition make it extremely difficult to site new refineries. That spells a major shortage of refining capacity in the U.S., particularly for gasoline. Thus, the U.S. has to import significant quantities of gasoline from regions that have excess gasoline refining capacity -- mainly Caribbean nations and Europe. Imports of gasoline and other refined products are growing even faster than crude oil imports. That should lead to solid growth for OMM. The stock is a current member of our Income Portfolio. This article highlights the commentary of Paul Tracy for the Zacks.com audience. Paul Tracy provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "StreetAuthority Market Advisor" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "StreetAuthority Market Advisor" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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(PG) - Charles Carlson, DRIP Investor newsletter - companies whose business models should hold up regardless of economic conditions

Charles Carlson, editor of the DRIP Investor newsletter, highlights a large-company defensive name that is a leading provider of household products. Read this featured expert's commentary and receive an update in the company's recent performance. Afterward, learn Carlson's outlook on the stock. P&G A Play on Large Caps, Defensive Stocks from October 2 An emerging theme in the stock market is the rebound in large-company stocks, especially mega-cap stocks. A parallel theme is the continued attraction of “defensive” stocks — companies whose business models should hold up regardless of economic conditions. One stock that fits both of these themes nicely is Procter & Gamble (PG). The company, a component of the Dow Jones Industrial Average, is a leading provider of household products. The firm should see its top and bottom lines hold up even if the economy slips. Profits are expected to be a record in the current fiscal year, and long-term prospects are excellent. Charles Carlson has owned Procter & Gamble stock for several years and has been rarely disappointed. DRIP investors should consider these shares a core holding for any portfolio. Corporate Profile Procter & Gamble is the home of some of the strongest consumer brands in the world. Brands include Tide, Swiffer, Cascade, Head & Shoulders, Olay, Sure, Pampers, Charmin, Bounty, Pringles, Crest, and Prilosec OTC. The firm expanded its operations with the October 2005 acquisition of Gillette. Fiscal 2006 ended in June was a solid year for the company. Net sales increased 20% for the fiscal year. The firm achieved organic sales growth of 7%, with every business segment delivering organic sales growth for the fiscal year. Excluding dilution from the Gillette acquisition, earnings per share rose around 12%. The company's efficient operations generated $8.7 billion in free cash flow for the fiscal year. That cash generation gives the firm plenty of options in the way of future acquisitions and stock buybacks. P&G, trading at 21 times fiscal 2007 earnings estimate, is not a cheap stock. Still, these shares merit a premium valuation given the company's steady performance. Dividend investors take note that Procter & Gamble's payout has more than doubled since 1999. The company currently pays a quarterly rate of $0.31 per share, giving the stock a yield of 2.0%. Conclusion Steady, dependable growers will be highly prized should Wall Street fears of a slowdown in corporate earnings increase. Procter & Gamble is the antidote for uncertainty. While the stock is not likely to be at the top of the leader board in any one year, Carlson expects these shares to produce market- beating returns over the next several years. Please note that Procter & Gamble's direct-purchase plan permits initial purchases with a minimum $250. This article highlights the commentary of Charles B. Carlson for the Zacks.com audience. Charles B. Carlson provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "DRIP Investor" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "DRIP Investor" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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(NDE) - (CVX) - (TWGP) - John Reese, Validea Hot List newsletter

John Reese, editor of the Validea Hot List newsletter, notes that the Validea Hot List has grown nearly five times the 35.3 percent increase in the S&P 500 during the same period. Find out the percentage gain for the Hot List. Then receive an update on the year-to-date and more recent gains of the Validea versus the S&P 500. Afterward, learn about an addition to this featured expert's portfolio as well as a couple other Hot List holdings. Validea Hot List Performance from October 6 Since inception, the Validea Hot List has grown 166.6 percent, nearly five times the 35.3 percent increase in the S&P 500 during the same period. Year-to-date, the Validea Hot List is up 20.1 percent, more than double the 8.4 percent gain of the S&P 500. And since the last issue of the newsletter two weeks ago, the Validea Hot List is up 3.5 percent, at a time when the S&P 500 rose 2.7 percent. An Addition to the Hot List IndyMac Bancorp (NDE) This company is favored by two guru strategies. One of the gurus is David Dreman. The strategy based on David Dreman's approach to investing likes IndyMac. IndyMac passes three contrarian tests: being in the bottom 20 percent of the market for P/E ratio, price-to-cash flow ratio and price-to-dividend ratio. As indications of the company's financial health, it has a strong return on equity of 21.16 percent, pre-tax profit margins of 44.91 percent (way above the 8% minimum required) and a strong yield of 4.5 percent. Other Hot List stocks include: Chevron Corp. (CVX), formerly ChevronTexaco Corporation, manages its investments in subsidiaries and affiliates, and provides administrative, financial and management support to the United States and foreign subsidiaries that engage in integrated petroleum operations, chemicals operations, coal mining, power and energy services. Petroleum operations consist of exploring for, developing and producing crude oil and natural gas; refining crude oil into finished petroleum products; marketing crude oil, natural gas and the many products derived from petroleum, and transporting crude oil, natural gas and petroleum products by pipeline, marine vessel, motor equipment and rail car. Chemicals operations include the manufacture and marketing, by affiliates, of commodity petrochemicals for industrial uses, and the manufacture and marketing, by a consolidated subsidiary, of fuel and lubricating oil additives. Tower Group, Inc. (TWGP) offers a range of specialized property and casualty insurance products and services to small to mid-sized businesses and to individuals in New York State and the surrounding areas through its wholly owned subsidiaries, Tower Insurance Company of New York (TICNY), Tower National Insurance Company (TNIC) and Tower Risk Management Corporation (TRM). TICNY is a property-casualty insurance company. TNIC is a property and casualty insurance company. TRM is a non-risk-bearing insurance services company that produces, through its managing general agency, business on behalf of other insurance companies. The Company's commercial lines products provide insurance coverage to businesses, such as retail and wholesale stores, grocery stores, restaurants, artisan contractors, and residential and commercial buildings, while its personal lines products focus on modestly valued homes and dwellings. Tower operates in three segments: Insurance, Reinsurance and Insurance Services. This article highlights the commentary of John Reese for the Zacks.com audience. John Reese provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "The Validea Hot List" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "The Validea Hot List" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home

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