Lloyds Raises £3.3bn From U.S. Mortgage Portfolio Sale

LONDON -- Lloyds Banking Group  (LSE: LLOY  ) (NYSE: LYG  )  this morning announced the latest disposal in its continued "non-core asset reduction," in the form of selling a portfolio of US residential mortgage-backed securities to a number of different institutions for a cash consideration of £3.3 billion.

With a book value of £2.7 billion, the transaction will gift Lloyds around £540 million prior to tax, which will be reinvested into the company for "general corporate purposes."

As part of the sale, Lloyds' pension trust also sold its £805 million (book value) share of the portfolio, to realize a pre-tax gain of £360 million. Management said that this will go toward reducing the deficit in the scheme.

Representing further reduction in its risk-weighted assets, this morning's statement from the 39%-taxpayer-owned bank claimed that the sale will lift the group's core tier 1 capital by around 47 points (£1.4 billion capital equivalent).

Today's news follows last week's disposal of 77 million shares in St. James's Place for £450 million, while Lloyds also reassured investors by saying that it is unlikely to need to raise further funds from shareholders, instead using cash generated from its business and disposals like today's to raise capital needed to absorb future losses on loans.

The share price was little moved in early trade, and still hovers close to its 24-month high of 63 pence. But if you are looking for alternative investment opportunities within the FTSE 100, then this exclusive wealth report reviews five particularly attractive possibilities.

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3 Stocks Near 52-Week Lows Worth Buying

Just as we examine companies each week that may be rising past their fair value, we can also find companies potentially trading at bargain prices. While many investors would rather have nothing to do with companies tipping the scales at 52-week lows, I think it makes a lot of sense to determine whether the market has overreacted to the downside, just as we often do when the market reacts to the upside.

Here's a look at three fallen angels trading near their 52-week lows that could be worth buying.

Don't write off this sector just yet
Want to know a surefire way to scare an investment banker away with two simple words? Just say "mortgage REIT" and you'll likely see him or her scamper away.

The mREIT sector has been nothing short of slammed over the past quarter on speculation that the Federal Reserve will begin winding down its $85 billion in monthly bond purchases, which have worked in mREIT's favor by keeping long-term lending rates at historically low levels. I, however, see things a bit differently and think plenty of opportunity still exists here, including with American Capital Mortgage Investment (NASDAQ: MTGE  ) .

There are two ways to play the mREIT sector. The first method is by purchasing agency-only mREITs like American Capital Agency. Agency-only mREITs purchase mortgage-backed securities and mortgage loan assets that are fully backed by the U.S. government in case of default. Often this means agency mREITs can utilize high leverage ratios but usually deliver lower net interest margins. American Capital Agency has used this leverage to its advantage and currently delivers a projected yield of 20%!

Then there's the second method, which is by purchasing hybrid companies that buy agency and non-agency MBS's. Non-agency loans aren't backed by the government, which means any defaults are taken as losses on the balance sheet. The trade-off is that non-agency loans yield much higher net interest margin rates.

For American Capital Mortgage, investors seem hell-bent to focus on its non-agency risk when just $727 million of its $11.8 billion investment portfolio is tied up in non-agency investments. Other metrics, including its leverage ratio of 4.9 and net interest margin of 1.90%, appear to be well in line with the sector average. Furthermore, American Capital Mortgage is trading at just 68% of its book value, implying that investors may be emotionally overreacting on this move lower.

Even if American Capital Mortgage had its payout halved, it would still net investors close to 10%. I think this is an mREIT you need to dig more deeply into.

Screening for great deals
If you're looking for a potentially undervalued medical device and diagnostics company, consider looking no further than Hologic (NASDAQ: HOLX  ) .

With Hologic completing the sale of its Lifecodes business segment to Immucor in March and Europe consistently weighing down medical device and diagnostic sales lately, investors have multiple reasons to be skeptical of Hologic's impending growth slowdown. With a forecast sales growth rate of 26% in 2013, it's a bit disappointing to see sales growth slow to just 6% next year. But I see multiple growth drivers on the horizon.

Nothing in Hologic's pipeline of products offers more promise than its 2D + 3D mammography Affirm breast biopsy guidance system. One of the biggest challenges in diagnosing and treating breast cancer is getting an accurate and detailed view of the area of concern. Hologic's mammography products are making this process quicker, cheaper, and more reliable for patients. This should be an area of big growth given that breast cancer is the second-most diagnosed of all cancer types.

Another overlooked factor is that Hologic is a niche company in women's health. Because women statistically live longer than men, this means a company like Hologic will be able to sell its diagnostic and medical products to female patients for a longer period of time than, say, a medical device and diagnostic company focused solely on men.

At 11 times forward earnings and with a sea of potential growth in breast cancer screening, Hologic is a name I believe you should have a close eye on.

Living in a renter's paradise
The last quarter has been rough on housing and office space real estate investment trusts, with 30-year mortgage rates spiking from less than 3.5% to as high as 4.75% recently. Low lending rates were one of the keys fueling the housing rally higher, so higher lending rates stemming from the potential wind-down of QE3 could serve to stymie growth. Yet for residential-REITs like Mid-America Apartment Communities (NYSE: MAA  ) , the effect would actually be extremely positive.

Mid-America Apartment, which thankfully has a much shorter moniker in MAA, is already enjoying very high occupancy rates of 96.1% as of its most recent quarter. Where it's really benefiting is with regard to rental rates. Vacancies for apartments are already low, but with mortgage rates rising, the incentive to purchase a home is quickly dwindling away. Instead, prospective homebuyers may choose to rent and wait out the next drop in interest rates. This expected influx of renters into an already tight market only serves to boost MAA's pricing power. Not surprisingly, rental rates were up 4.7% in the past quarter. 

Another growth driver looks to be its pending $8.6 billion merger with Colonial Properties Trust (NYSE: CLP  ) . The combined entity would become the second-largest U.S. based residential REIT, with 85,000 apartment units. Opposition to the deal from some of Colonial's shareholders does exist, but comparatively speaking, MAA is in great shape either way. It already has a high occupancy rate, and the addition of Colonial's properties would only further serve to enhance its rental pricing power.

With a yield in excess of 4%, MAA could have years of good time ahead if lending rates continue to trickle higher.

Foolish roundup
Sometimes investors need to be reminded that macroeconomic events that can affect a large group of stocks don't necessarily hold true for every stock in a sector. QE3 may pose challenges to mREITs and residential-REITs, but there are certainly hidden gems mixed in with the possible losers. The same goes for Hologic with regard to its promise in women's diagnostics, even with Europe weighing on most of the health care sector.

I'm so confident that these three names will bounce off their lows that I'm going to make a CAPScall of outperform on each one.

Solid companies selling at depressed prices, such as those which I've attempted to highlight above, have consistently helped generations of the world's most successful investors preserve capital, minimize risk, and achieve long-term, market-trampling returns. For one such company, read our free report: "The One REMARKABLE Stock to Own Now." Just click here to get started.

Get Paid To Buy This Rebound Play, With A Shot At 80% Upside

The changes at Groupon (Nasdaq: GRPN) appear to be paying off. The departure of founder and CEO Andrew Mason in February marked an emotional low point. The stock has doubled since then, and it is now up nearly 250% from the extreme low in November.

 

The bottoming bounce from the $2.60 low to the $9.43 yearly high has support at the $6 midpoint of the range.

Looking at the bigger picture, the post-IPO high near $31 to the extreme lows has a recovery target of about $16, about 82% above the current price.

As of this writing, GRPN is trading around $8.80. If you are comfortable holding on to this inexpensive stock for a potential recovery, then selling put options could allow you to collect income while you wait to get into GRPN at a 14% discount.

Cash-Secured Put Selling Strategy
While the typical investor might use a limit order to buy a stock or ETF at a designated price or lower, the options trader can do one better by selling a cash-secured put.

This strategy has the same mathematical risk profile as a covered call. With put selling, there is an obligation to buy the stock at the strike price if it is assigned, allowing you to get into the stock at a discount. In fact, the true entry cost basis is even lower with the subtraction of the premium you earned from selling the puts.

And if the stock is not below the strike price at expiration, then the premium received is all profit. In other words, you're getting paid not to own the stock.

There are two rules traders must follow to be successful at selling put options.

Rule One: Sell puts only on stocks you want to own.
The intention of this strategy is to be assigned the stock as a long-term investment (each option contract represents 100 shares). So make sure you have the money ready to buy the stock at the options' strike price if a sell-off occurs. Paying in full ensures that no additional money is needed to hold the stock for potentially many months or even years until a price recovery.

Rule Two: Sell either of the front two option expiration months to take advantage of time decay.
Collect premium every month on put sales until you are assigned shares at a cost-reduced basis. Every month that you keep the premium is money subtracted from your entry price.

Action to Take --> Sell to open GRPN Aug 8 Puts at 40 cents or better. (This is a volatile stock, so I suggest using a limit order to get the desired price.)

This cash-secured put sale would assign long shares at $7.60 ($8 strike minus 40-cent premium), which is about 14% below GRPN's current price, costing you $760 per option sold. If the options expire worthless, you keep the $40 premium, earning a potential 5.3% return in 23 days.

But remember, you should only sell this put if you want to own GRPN at a discount to the current price. If you are assigned the shares, a September covered call can be sold against the stock to lower your cost basis even further.

If the stock does not fall below the strike price before expiration, then you keep the premium you collected, essentially getting paid not to buy the stock.

For more analysis on GRPN, see the video below (starting at 3:10):

This article was originally published at ProfitableTrading.com:
Get Paid to Buy This Stock at a Discount for a Chance at an 80%-Plus Rally

The Real Crisis in Employer-Provided Health Insurance

One of objections that opponents of Obamacare give against the landmark health care legislation is that employers will have an incentive to drop the health insurance coverage that millions of workers currently receive as employee benefits. Yet even before Obamacare became law, the trend among employers was to offer health insurance to fewer employees, leading to increased stress on families seeking to protect themselves against potentially catastrophic health care costs.

In particular, a recent study from the Employee Benefit Research Institute looked at the question of workplace-provided health insurance coverage. With its examination of trends in recent years, the EBRI confirmed what has long been a known fact: that the cost of health insurance is the key determining factor in whether employees choose coverage. Let's take a closer look at the study and its implications for your insurance coverage going forward.

2 key trends in health insurance
The EBRI study focused on two different measures of health insurance coverage. First, the study looked at the percentage of workers with employer-provided health benefits. Then, it turned to the reasons that those who weren't covered cited in explaining why they went without insurance coverage.

On the first topic, trends toward a smaller percentage of workers having employer-based health benefits have been in place for well over a decade. After peaking above 80% in 1999 and 2000, the percentage of people having any employer-based source of insurance coverage -- whether in their own name or by being a qualifying dependent on another person's policy -- has fallen steadily ever since, with levels declining to the low 70% range as of early last year. In particular, coverage in workers' own names has fallen dramatically in recent years, with the 60.4% in December 2007 falling to just 54.7% as of October 2011.

Those figures suggest that more employers have been pulling back on offering health insurance benefits to their workers. Yet in the second part of the survey, the experience of uninsured workers strongly contradicts that hypothesis, pointing instead to cost considerations as being paramount in the decision to go uncovered.

In particular, the EBRI found that as recently as 2001, roughly 40% of uninsured workers claimed that their employers didn't offer them health benefits. Yet by the end of 2011, that figure had declined almost in half, to 22%.

Access therefore might not be the issue. But what nearly 90% of uninsured workers say is that even if they're eligible for employer-provided health insurance, its cost is too high for them to accept it. Cost has always been a major consideration for those who go uninsured, with figures since 1995 routinely falling within the 70% to 90% range, but cost has been particularly important in the years since the 2008 recession.

Why the uninsured are so important
One big question that Obamacare proponents and opponents are wrestling with right now is the extent to which these uninsured workers will get coverage under new health care laws. On one hand, the individual mandate requires most people to obtain coverage. Yet if cost truly is the problem, Obamacare provides an exception to the mandate that exempts those for whom the cost of care is prohibitive.

That in turn could create a problem for hospital companies. Tenet Healthcare (NYSE: THC  ) , Community Health Systems (NYSE: CYH  ) , and Health Management Associates (NYSE: HMA  ) have all seen their share prices jump sharply as investors grow increasingly excited about the prospects of uninsured Americans getting mandated coverage under Obamacare. The hope is that by having more people insured, these hospital companies will lose less in uncovered health care expenses they incur when they treat uninsured patients.

As a result, much will depend on government subsidies to help low-income workers bridge the gap between available coverage and affordable coverage. If subsidies don't succeed, then the real crisis in employer-provided health insurance could well continue -- and hospital stocks could give back much of their gains.

Still confused about how Obamacare might affect you and your portfolio? The Motley Fool's special report "Everything You Need to Know About Obamacare" takes a 360-degree look at how the law may impact your taxes, health insurance, and investments. Click here to grab your free copy today.

Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter @DanCaplinger.

Obama Focusing on Job Creation in Baltimore Visit

BALTIMORE (AP) -- President Barack Obama is leaving behind scandal-focused Washington to focus on the country's slowly improving jobs picture.

Obama is to fly by helicopter Friday about 40 miles north to Baltimore, which has had its share of tough times in the move from an industrial to service economy. But Maryland has experienced job growth this year as part of a nationwide economic recovery.

The White House said the trip is designed to focus on three areas of needed investment to grow the middle class -- jobs, skills, and opportunity.

The president plans to highlight one of the manufacturing companies still thriving in the city by speaking at Ellicott Dredges. It makes equipment for excavation under water and on beachfronts around the world.

Obama also plans to visit a community center that provides job training to parents and an elementary school that provides early childhood education. Obama has proposed that public preschool be available for all 4-year-olds from low-income families.

The focus on Obama's economic agenda comes at the end of a week that has been consumed by a trio of political controversies. They include the targeting of conservative political groups by the Internal Revenue Service, the administration's response to last year's deadly attack on a U.S. diplomatic facility in Benghazi, Libya, and the seizure of Associated Press phone records by the Justice Department as part of a leak investigation.

Obama's turn to the economy comes in a state that added 31,200 jobs over a year to climb to a 6.5 percent unemployment rate in April, according to the most recent data by the U.S. Labor Department's Bureau of Labor Statistics. April saw a downturn, with Maryland losing 6,200 jobs after four consecutive month of job growth.

"Last year, we had the best-rated job creation of any state in our region and we have very nearly recovered 100 percent of the jobs that we lost during the recession," Maryland Gov. Martin O'Malley said at a bill-signing ceremony on Thursday.

Rep. Andy Harris, Maryland's only Republican congressman, criticized Obama's trip as a photo opportunity, instead of staying in Washington to work on economic problems. For example, Harris said Obama has been dragging his feet on developing the Keystone XL pipeline that would carry oil from western Canada to the Texas Gulf Coast and create jobs. The administration has not yet taken a position on the project, which is opposed by environmentalists but supported by the president of Ellicott Dredges, Peter Bowe, in testimony before Congress Thursday.

"That would boost jobs at Ellicott Dredges, but other than that, it's just going to be another photo op on a campaign-style tour when the president should be in Washington tending to the nation's business and to address the huge scandals that are popping up on a daily basis in Washington," Harris said in a conference call with other Maryland Republicans.

Obama planned to tout another effort to create jobs in his visit to Ellicott Dredges. He signed a memorandum Friday to federal agencies directing them to update infrastructure permit processes with the goal of cutting their timelines in half. The White House said it's an important step in his goal of creating jobs by making urgent repairs to roads, bridges, and railways.

"By cutting red tape and shaving months, and even years, off the time it takes to review and approve major infrastructure projects, we will be able to start construction sooner, create jobs earlier, and fix our nation's infrastructure faster," the White House said in a statement. It cited an example of the recently approved replacement of the aging Tappan Zee Bridge across the Hudson River in the suburbs just north of New York City, which saved two to three years on the timeline.

China Biotech In Review: Despite Its China Problems, GlaxoSmithKline Moving Forward With Vaccine Collaboration Plan

Ford's 2013 Fusion Hybrid Dominates Competition

Why Zynga Shares Folded

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Zynga (NASDAQ: ZNGA  ) plummeted 18% today after the social gaming specialist issued a disappointing outlook and said that it is abandoning plans to enter the U.S. online-gambling business.

So what: The stock has surged in 2013 on optimism over its online betting prospects, so today's announcement to scrap the U.S. gambling license -- coupled with downbeat guidance for the rest of the year -- is forcing Mr. Market to quickly sober up. And while Zynga's second-quarter loss narrowed to $15.8 million, versus $22.8 million in the year-ago period, an alarming 40% drop in its monthly average users suggests that its popularity and competitive strength continues to rapidly diminish.

Now what: Management now sees an adjusted third-quarter loss of $0.05-$0.09 on revenue of $175 million-$200 million, versus Wall Street's view of a $0.02 loss and sales of $216.2 million. "[W]e need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company," said CEO Don Mattrick. "We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters." Given the huge uncertainty surrounding Zynga's short and long-term prospects, conservative Fools might want to keep watching from the sidelines.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Hot Value Companies For 2014

LONDON -- I've been popping stocks into my shopping basket in recent weeks and it's time I took one or two to the checkout. Here are five stocks I've found tempting. Should I buy any of them?

G4S� (LSE: GFS  )
G4S won the wooden spoon at last year's Olympic Games, due to its security recruitment disaster. But the Olympics is history now, so is G4S back on track? First-quarter results suggest it still has a long way to go, with group operating margins down 0.6% year over year. Performance has been hit by worries in Europe. Prices are also under pressure in the U.K. and Ireland, but U.S. corporate spending has picked up. Happily, G4S generates 70% of its profits outside the U.K., where U.S. corporate spending helped revenues grow 7.5%. G4S may be a national joke, but it's a global company, generating 70% of its profits outside the U.K. That's good news, with healthy 12% growth in emerging markets helping to offset the modest 4% rise in developed countries. The share price has grown just 3% in the past three years, compared to 30% for the FTSE 100 as a whole, leaving G4S on a relatively lowly 12.3 times earnings. That could make it a good value play, but it still has a lot to prove to this investor.

Hot Value Companies For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Sam Collins]

  Caterpillar (NYSE:CAT) is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The stock has been in a bull market since the market bottomed in March 2009. CAT was one of our Top Stocks to Buy for December because of its position as a major supplier to the third world and China. The company should also be a beneficiary of orders from Japan due to the damage from earthquakes and the tsunami.

  Revenues in 2011 are expected to increase by 36%, according to S&P, and margins are expected to increase, as well. Earnings for 2012 are forecast at $9.10, up from $7.50 this year, and S&P has a target of $142 over the next 12 months.

  Technically CAT has strong support at $95 and currently appears to be oversold, according to Moving Average Convergence/Divergence (MACD). If it is able to hold at the support line, look for a rally to $110 within 30 days. Longer term the stock could trade north of $125.

Hot Value Companies For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Dave Friedman]

  Institutional investors bought 66,328,670 shares and sold 64,611,410 shares, for a net of 1,717,260 shares. This net represents 0.14% of common shares outstanding. The number of shares outstanding is 1,250,000,000. The shares recently traded at $74.84 and the company’s market capitalization is $100,986,600,000.00. About the company: Schlumberger Limited is an oil services company. The Company, through its subsidiaries, provides a wide range of services, including technology, project management and information solutions to the international petroleum industry as well as advanced acquisition and data processing surveys.

• [By Robert Holmes]

   Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

  "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

  Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

• [By Kathy Kristof]

  Headquarters: Houston
  
  52-Week High: $79.38
  
  52-Week Low: $56.86 
  
  Annual Sales: $39.5 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 
  
  With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

Top 5 Growth Companies To Watch For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Sam Collins]

  Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

  S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

  Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Hot Value Companies For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Profits Tumble for Valero

With second-quarter earnings season picking up stream, Valero Energy (NYSE: VLO  ) posted a tumultuous drop in year-over-year net income, but the refiner still beat analyst estimates with normalized earnings of $0.96 per share. With the United States' WTI crude benchmark closing the gap with the international Brent crude price, U.S. refiners are looking for new competitive advantages, and Valero is starting to make solid inroads. Check out the video below for more information on Valero's second quarter and see which direction the company is moving.

With WTI benchmarked crude trading over $100 once again, investors need to follow the money to find the most intriguing energy plays. To gear you in this direction, The Motley Fool has a limited time free report titled, "3 Stocks for $100 Oil." For FREE access to this special report, simply click here now.

 

Here's What This Big Value Investor Has Been Buying and Selling

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today, let's look at Diamond Hill Capital Management, founded in 2000 and based in Ohio. Its management has explained that, "Our research is predominantly a bottom-up process beginning with fundamental analysis of a company's profitability and market position, financial and competitive position, management quality, valuation, and growth components of valuation." Like other value-oriented investors respected by The Motley Fool, Diamond Hill seeks undervalued investments and margins of safety.

The company's reportable stock portfolio totaled $9.3 billion in value as of June 30, 2013.

Interesting developments
So what does Diamond Hill's latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Willis Group Holdings and Whirlpool. Other new holdings of interest include Baidu (NASDAQ: BIDU  ) and Huntington Bancshares (NASDAQ: HBAN  ) . Chinese search-engine giant Baidu has been hurt by China's slowing economic growth as well as by tough competition, such as from Qihoo 360. Many like its profitability and growth prospects, such as in video, and recent news that it's buying a major Chinese mobile apps company sent shares soaring.

Huntington Bancshares is viewed by many as a high-quality bank due to its low percentage of non-performing assets. It's also viewed favorably for its effective management and smart growth strategy. Its recently reported quarter featured earnings topping estimates, but revenue lagging them. Last quarter, it upped its dividend by 25% and recently yielded 2.4%.

Among holdings in which Diamond Hill Capital Management increased its stake was B&G Foods (NYSE: BGS  ) , a snack specialist recently yielding 3.3%. B&G has faced rising food costs in recent years, and has also been a frequent acquirer, though some would like to see it grow organically, without relying on acquisitions. (A recent buy is Pirate Brands, maker of Pirate's Booty snacks.) Its brands include Ortega, Mrs. Dash, Cream of Wheat, Underwood, Molly McButter, Baker's Joy, and Static Guard. Its just-completed quarter featured revenue up 8% but net income in the red and overall results underperforming expectations.

Diamond Hill Capital Management reduced its stake in lots of companies, including Devon Energy (NYSE: DVN  ) , which has been shifting its focus more to oil and liquids. The company has been seeing its debt grow while revenue and earnings shrink. Still, many like the company's involvement in promising shale fields and its savvy dealmaking and see the stock as attractive. Devon may be spinning off a master limited partnership with its midstream assets.

Finally, Diamond Hill's biggest closed positions included Chubb and Merck. Other closed positions of interest include mortgage insurer Radian Group (NYSE: RDN  ) , one of the most popular stocks among hedge funds -- for good reason, apparently, as it has more than quadrupled in value over the past year. The recovering housing market is helping Radian, along with tighter lending rules likely to lead to greater need for its coverage. Delinquent loans are a risk for Radian, as is strong competition.

We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.

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Can These 5 Pillars Save RadioShack's Bacon?

Another quarter has passed for RadioShack (NYSE: RSH  ) and things are still looking pretty bleak for the once high-flying electronics retailer. This past quarter revealed that while The Shack's heart is still beating, it's on life support, and I'm doubtful it will come off anytime soon.

Mmmmmm... bacon
The key to The Shack's success depends on "five pillars" that will guide the turnaround strategy. Let's take a look at these five pillars and dissect what they really mean:

Repositioning the brand: Sounds great, but the fact of the matter is, the more time that passes, the less relevant RadioShack's brand is, which makes it even more difficult to reposition.

Revamping product assortment: One of the biggest problems RadioShack faces is that consumers can get what they sell virtually anywhere; there's no real differentiation at this point. And this problem is only growing worse.

Reinvigorating stores: The stores are part of the problem indeed, but I'm not sure reinvigorating them is going to make much of a difference. For the most part it's a matter of convenience, not the experience.

Operational efficiency: This is a must. Margins all the way across have fallen off a cliff for these guys, and if they don't pull it together it's over, Johnny.

Financial flexibility: Anytime a company calls out their financial flexibility in the release as "total liquidity," red flags should go up. This means they are looking at everything they have; it's not necessarily a good thing. Total liquidity of $818 million doesn't matter much if sales aren't going anywhere. And when we look at how RadioShack's most recent sales stack up against some formidable competitors, it's a tough road ahead:

Company

TTM Revenue
(in millions)

TTM Net Income
(in millions)

RadioShack	$4,189	($206.8)
Best Buy	$48,191	($720.1)
Wal-Mart	$470,339	$17,041
Target	$73,140	$2,800

TTM = trailing 12 months.

Give me the "how"
Management is bringing in a team to try to help turn this boat around. AlixPartners, a global business advisory firm specializing in turnarounds, is in the mix now along with Peter J. Solomon Company, which is an investment banking firm. Both hires are signs that RadioShack is digging in to try to figure out how to deal with a difficult situation, and they may very well have some creative ideas. But former CFO Dorvin Lively isn't sticking around to find out. He's taken off for greener pastures, and an interim CFO (a director at AlixPartners) has been named in light of his departure.

The Foolish bottom line
I can't say I'm all that optimistic where RadioShack's future is concerned, but maybe there's some potential here. While sales have remained flat over the last five years, management's pillars are at least an effort to get things moving. For me, though, they speak more to the "what" as opposed to the "how." And it's the "how" that really matters, isn't it? If RadioShack turns this ship around, it will be epic. I for one, though, will not be holding my breath.

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Best Warren Buffett Companies To Buy Right Now

1.�Since Warren Buffett took the helm in 1964, Berkshire Hathaway (NYSE: BRK-B  ) has�never�underperformed the S&P 500 over any five-year interval.�

2. If you had taken $10,000 back then and achieved the same rate of return as Berkshire's growth in per share book value, at the end of 2012, you would have had $58,681,700.

3.�Under Buffett, Berkshire shareholders have collected just one dividend: a $0.10 per share payout in 1967. Buffett jokes he "must have been in the bathroom when that decision was made."

4.�Berkshire's roots go back more than 174 years to the founding of textile manufacturer Valley Falls Company, which itself merged with Berkshire Cotton Manufacturing Company in 1929. The resulting company merged with Hathaway Manufacturing to create Berkshire Hathaway in 1955.

Best Warren Buffett Companies To Buy Right Now: Merrimack Pharmaceuticals Inc (MACK)

Merrimack Pharmaceuticals, Inc., incorporated in 1993, is a biopharmaceutical company discovering, developing and preparing to commercialize medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. The Company�� product candidates include MM-398, MM-121, MM-111, MM-302 and MM-151. As of June 31, 2011, the Company owned approximately 74% interest of Silver Creek.

The Company�� Network biology is an interdisciplinary approach to drug discovery and development that enables the Company to build functional and predictive computational models of biological systems based on quantitative, kinetic, multiplexed biological data. The Company provides its scientists with insights into how the complex molecular interactions that occur within cell signaling pathways, or networks, regulate cell decisions and how dysfunction within these networks leads to disease. The Company applies network biology throughout the research and development process, including for target identification, lead compound design and optimization, diagnostic discovery, in vitro and in vivo predictive development and the design of clinical trial protocols.

MM-398

MM-398 is a stable nanotherapeutic encapsulation, or enclosed sphere carrying an active drug, of the marketed chemotherapy drug irinotecan. MM-398 achieved its primary efficacy endpoints in Phase 2 clinical trials in pancreatic and gastric cancer. In an open label, single arm Phase 2 clinical trial of MM-398 as a monotherapy in 40 metastatic pancreatic cancer patients who had previously failed treatment with gemcitabine, patients treated with MM-398 achieved median overall survival of 22.4 weeks. Additionally, 20% of the patients in this Phase 2 trial survived for more than one year, and the Company observed a disease control rate, meaning patients exhibited stable disease or partial or complete response to treatment, of 47.5% at six weeks.

The Company focuses on initiati! ng a Phase 3 clinical trial of MM-398 for the treatment of patients with metastatic pancreatic cancer who have previously failed treatment with gemcitabine. The trial is expected to enroll approximately 250 patients and is designed to compare the efficacy of MM-398 as a monotherapy against the combination of the chemotherapy drugs fluorouracil, or 5-FU, and leucovorin. There are multiple ongoing Phase 1 and Phase 2 clinical trials of MM-398. In July 2011, the United States Food and Drug Administration (FDA) granted MM-398 orphan drug designation for the treatment of pancreatic cancer.

MM-121

MM-121 is a fully human monoclonal antibody that targets ErbB3, a cell surface receptor, or protein attached to the cell membrane that mediates communication inside and outside the cell, that the Company�� network biology approach identified as a target in a range of cancers. A monoclonal antibody is a type of protein normally produced by cells of the immune system that binds to just one epitope, or chemical structure, on a protein or other structure. MM-121 is designed to inhibit cancer growth directly, restore sensitivity to drugs to which a tumor has become resistant and delay the development of resistance of a tumor to other agents. In collaboration with Sanofi, the Company focuses on testing MM-121 in combination with both chemotherapies and other targeted agents across a range of spectrum of solid tumors, including lung, breast and ovarian cancers. The Company partnered MM-121 with Sanofi after it initiated Phase 1 clinical development of the product candidate.

MM-111

MM-111 is a bispecific antibody designed to target cancer cells that are characterized by overexpression of the ErbB2 cell surface receptor, also referred to as HER2. A bispecific antibody is a type of antibody that is able to bind simultaneously to two distinct proteins or epitopes. The Company�� network biology approach identified that ligand-induced signaling through the complex of ErbB2 ! (HER2) an! d ErbB3 is a promoter of tumor growth and survival than previously appreciated.

MM-302

MM-302 is a nanotherapeutic encapsulation of doxorubicin with attached antibodies that are designed to target MM-302 to cells that over express the ErbB2 (HER2) receptor. The Company is conducting a Phase 1 clinical trial of MM-302 in patients with advanced ErbB2 (HER2) positive breast cancer.

MM-151

MM-151 is an oligoclonal therapeutic consisting of a mixture of three fully human monoclonal antibodies designed to bind to non-overlapping epitopes of the epidermal growth factor receptor (EGFR). EGFR is also known as ErbB1. An oligoclonal therapeutic is a mixture of two or more distinct monoclonal antibodies. The Company has designed MM-151 to block signal amplification that occurs within the ErbB cell signaling network. The Company has submitted an investigational new drug application (IND), to the FDA for MM-151 in July 2011.

Best Warren Buffett Companies To Buy Right Now: Hilltop Holdings Inc. (HTH)

Hilltop Holdings Inc., through its subsidiary, NLASCO, Inc., operates as a property and casualty insurance company in the United States. The company�s personal product line includes homeowners, dwelling fire, manufactured home, flood, and vacant insurance policies; and commercial product line consists of commercial, builders risk, builders risk renovation, sports liability, and inland marine insurance policies. It distributes its insurance products through a network of independent agents and managing general agents. The company was formerly known as Affordable Residential Communities Inc. and changed its name to Hilltop Holdings Inc. in July 2007. Hilltop Holdings Inc. was founded in 1948 and is headquartered in Dallas, Texas.

5 Best Stocks To Watch Right Now: Singapore Post Limited (S08.SI)

Singapore Post Limited provides postal and logistics services in Singapore and internationally. The company operates in three segments: Mail, Logistics, and Retail. The Mail segment offers services for collecting, sorting, transporting, and distributing domestic and international mail, as well as sells philatelic products. This segment�s international mail service includes handling incoming international mail and outgoing international mail. It also provides ePost hybrid mail service, which integrates electronic data communication with traditional mail. The Logistics segment offers a range of mail logistic services comprising domestic and international distribution and delivery services. The services include cross-border mail services and other value-added services, express delivery services, shipping services at vPOST Internet portal, warehousing, fulfillment, and distribution services and self storage solutions. The Retail segment provides various products and services comprising agency and remittance services, as well as financial services, which are delivered through post offices, authorized postal agencies, and stamp vendors; self-service automated machines (SAMs); virtual post Internet portal for bill presentment/payment; and online shopping platforms. The company operates approximately 60 post offices and 300 SAMs. It also provides electronic printing and dispatching, and electronic platform and recyclable lockers for merchandise distribution. The company was founded in 1819 and is based in Singapore.

Best Warren Buffett Companies To Buy Right Now: Tekmira Pharmaceut Com Npv (TKM.TO)

Tekmira Pharmaceuticals Corporation, a biopharmaceutical company, focuses on developing ribonucleic acid interference (RNAi) therapeutic product candidates and providing its lipid nanoparticle delivery technology to pharmaceutical partners in the Canada. The company�s internal product development candidates include TKM-PLK1, an oncology product candidate that is in Phase I clinical trials to kill cancer cells; and TKM-Ebola, an antiviral product, which is in Phase I of clinical trials for the treatment of the Zaire species of Ebola virus infection. It also develops TKM-ApoB that has completed Phase I clinical trials to reduce the production of apolipoprotein B 100 in patients with high levels of low-density lipoprotein cholesterol. In addition, the company has licenses from Alnylam targeting two validated oncology targets, WEE1 and CSN5; and to develop TKM-ALDH2, a systemically delivered RNAi therapeutic that utilizes lipid nanoparticle technology for the treatment of alc ohol dependence. Tekmira Pharmaceuticals Corporation was founded in 1992 and is headquartered in Burnaby, Canada.

The Top 3 Dow Stocks This Week

If it weren't for a crash late in the day Friday, it may have been another positive week on Wall Street. But stocks fell dramatically in the last hour of trading and, when the dust had settled, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) was down 1.23% for the week, and the S&P 500 (SNPINDEX: ^GSPC  ) had fallen 1.14%.

Economic data was mixed with consumer confidence hitting a level we haven't seen since July 2007, and GDP growing more slowly than expected in the first quarter. Interest rates also began rising this week, and that may hurt the tepid economic recovery. With government spending falling, and interest rates having nowhere to go but up, it's likely to be a choppy remainder of 2013, as consumers and investors adjust to the new state of the economy.

There weren't a lot of winners on the Dow this week, but mega banks Bank of America (NYSE: BAC  ) and JPMorgan Chase (NYSE: JPM  ) were among them, after gaining 3.2% and 1.7%, respectively. There was more positive news out of the housing industry, and RealtyTrac reports that foreclosure sales were down 18% sequentially in the first quarter, and down 22% from a year before. That's both a sign that people are now able to pay their mortgages, and that home values are rising, and that's good for banks. 

The more important news this week may be what's called a steepening yield curve. When short-term interest rates are low, and long-term interest rates are high, it's called a steep curve; so when long-term rates jumped this week, the curve got steeper. That's good for banks, which can borrow money short term, and loan it out long term in mortgages or other loans. As the curve gets steeper, profits should go up, and that helped bank stocks this week.

Rounding out the top three Dow stocks this week was Cisco Systems (NASDAQ: CSCO  ) , which was up 2.5%. The company made headlines this week by arguing in a European court that Microsoft's deal to buy Skype should have been looked at more closely before being approved. CEO John Chambers said he doesn't want the deal undone, but wants greater interoperability, which would allow Skype to communicate with systems like Cisco's TelePresence. 

Once a high-flying tech darling, Cisco is now on the radar of value-oriented dividend lovers. Get the lowdown on the routing juggernaut in The Motley Fool's premium report. Click here now to get started.

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More Expert Advice from The Motley Fool

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The FDA Might Pull This Drug From the Market (and Why It Doesn't Matter)

The Food and Drug Administration is investigating two deaths that occurred after patients were injected with Eli Lilly's (NYSE: LLY  ) antipsychotic Zyprexa Relprevv.

The drug is the long-acting version of the oral version of Zyprexa, which is taken daily. Zyprexa Relprevv is injected every two to four weeks.

Lilly had trouble getting Zyprexa Relprevv approved, and when it did, the FDA slapped a black box warning recommending that patients be observed by a health care professional for at least three hours after each injection because high levels of the drug can cause sedation and delirium.

The two patients died three to four days after receiving the dose, well after the observation period. Both had high levels of the active ingredient in their blood.

Not the end of the world
We're still in the investigation phase. At this point, there appears to only be a correlation, but causation hasn't been established just yet. Even if Zyprexa Relprevv is pulled from the market because the FDA is worried that the drug is released faster than it's supposed to, it won't be a major issue for Eli Lilly.

The company doesn't even bother breaking out sales of Zyprexa Relprevv in its earnings report. Bloomberg reported that a Lilly representative said Zyprexa Relprevv sales accounted for less than $60 million last year. That's out of $22.6 billion, or about 0.2% of revenue. Losing the drug would hardly be noticed, certainly nothing like Eli Lilly experienced when the oral version, which was selling $4.6 billion per year, started seeing generic competition.

Johnson & Johnson (NYSE: JNJ  ) is the leader for the long-acting antipsychotic, selling $1.4 billion worth of Risperdal Consta and $800 million worth of Invega Sustenna last year. Alkermes (NASDAQ: ALKS  ) also benefits from a royalty on both drugs. It developed the extended-release technology in Risperdal Consta, and Alkermes acquired the royalty rights to Invega Sustenna when it bought Elan's (NYSE: ELN  ) drug technology division.

Those sales are pretty impressive considering that the oral version of Risperdal is available as a generic. Doctors clearly see an advantage in having schizophrenic patients not taking daily oral medications, where compliance isn't always as high as doctors would like. Since they have to be injected by a health-care professional, prescribing the injected medication also allows psychiatrists more frequent contact with the patient and better drug monitoring.

With two of its top three drugs poised to lose patent protection this year, is Eli Lilly a dividend stock headed nowhere fast? In a new premium report, The Motley Fool's senior pharmaceuticals analyst breaks down all of Lilly's moving parts, including an in-depth analysis of the company's must-know opportunities and reasons to buy and sell today. To find out more click here to claim your copy today.

The 2 Potential Paths Of Conoco's Dividend

For long-term investors of Conoco Phillips stock (COP), the 2001-2011 stretch was a good decade stretch of time, indeed. The earnings per share for the company's operations grew from $2.90 per share to $8.76 per share, and the dividend grew every year during that time frame from an annual payout of $0.70 in 2001 to $2.64 in 2011 before spinning off Phillips 66 (PSX) to the existing shareholders.

That's what the good side of dividend growth investing looks like: you quadrupled your overall dividend income in less than ten years while getting annual raises and growing your paper wealth by 12.9% annually.

Many of you Conoco shareholders reading this may have noticed the announced dividend increase today from $0.66 to $0.69 per share, for an increase of 4.5%. As a shareholder of Conoco with a 20+ year time horizon in mind, I am interested in setting my expectations for Conoco's dividend now that I need to adjust for the Phillips 66 spinoff in addition to the asset shedding that has taken place in the past two years.

The general trend with Conoco is that it is moving in the direction of becoming a pure earnings and exploration company. That is not a bad place to be: this is a company pumping out about 1.5 million barrels of oil and oil equivalents per day, and has an estimated 9 billion barrels of oil and oil equivalents in proven reserves.

Furthermore, we can see where the company is investing its money: high-margin projects in the Gulf. Continued strength in the Permian Basin. Increased investment at Eagle Ford.

Forbes gave a great synopsis to investors at the end of April, describing the direction that Conoco management will be taking the company:

ConocoPhillips is at the forefront of the debate in the oil industry, having decided to get rid of its lower-margin downstream business and concentrate on exploration and production…

Still in the process of selling assets and streamlining its operations, Conoco's total revenue fell 10% to $14.65 billion, bu! t still beat the estimate which called for $12.79 billion in sales. The company is betting on the U.S. energy miracle, investing $1.28 billion (38% of total quarterly capex) in the liquids-rich Eagle Ford, Bakken Field, and Permian Basin; production there was up 42%. Part of that spending also went to Columbia, where Conoco is expected to begin drilling at the La Luna shale field in the second quarter.

Conoco's asset optimization should benefit long-term shareholders in two meaningful ways: the volume will increase 4-5% annually, but more importantly, the profits that Conoco generates should be higher because the company has been switching to higher-margin opportunities while selling the low-margin cash cows.

The implications of Conoco's spinoff of Phillips 66 and general asset shedding is that a focus on upstream production ties earnings closer to the price of the underlying commodities, and thus makes the earnings more volatile (that is because you focus on making capital expenditures to find new wells and get the energy from the ground, rather than transporting them or processing them). The good news for Conoco shareholders is that the upstream opportunities are where the fast growth is at, particularly in times of decent or high energy pricing. The bad news is that, at the bottom of an energy cycle, the profits at Conoco are likely to be lower.

If low energy prices persist for a long time, upstream companies usually look to merge so that they can rely on midstream and downstream profits to fund the capital expenditures necessary to find new wells (the best case studies of this are the low energy prices that drove Exxon to merge with Mobil, BP to merge with Amoco, and even Conoco to merge with Phillips in the first place).

In terms of dividend policy, it seems that Conoco management has two options going forward:

1. Either establish dividend policy that reflects business performance, meaning sharp dividend hikes during periods of rising prices and high volume production ! (and cons! equently dividend freezes or token dividend growth during periods of low asset pricing or asset reshuffling)

2. Or establish a policy of moderate annual dividend growth in the 4-7% annual range that smoothes out the earnings experience for shareholders, softening their income gains in good years but providing them the psychological support and sustained income growth during the lean years.

From 2001 to 2011, the growth of the dividend played a large part in Conoco's story as it increased from $0.70 to $2.64. Conoco is now pursuing more volatile, but likely more lucrative, paths to creating wealth. That means that the total returns experienced by investors over the coming years is likely to be due to the current dividend payout plus the growth in retained earnings (namely, the market multiple placed on those earnings) instead of the growth of the dividend itself. In short, long-term profits should continue to grow substantially but less linearly, and as a result, the growth of the dividend will play a meaningful but less lucrative role in the story of Conoco going forward.

Source: The 2 Potential Paths Of Conoco's Dividend

Disclosure: I am long COP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

The Fool Looks Ahead

Big Pharma's 3 Most Profitable Companies

Patent expirations have cut into sales at Big Pharma's best in recent quarters. Doom-and-gloom talk over the patent cliff ,and shaky pipelines at pharmaceutical firms, have waxed and waned, but some of the industry's best firms have kept up profitability that would make any Wall Street analyst blush.

Which firms are earning the most for your investment -- and are they really worth your money? Motley Fool contributor Dan Carroll takes a look below at the three firms maintaining the industry's best net profit margins, and explains if these stocks match up to what their businesses are bringing in.

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Did These Earnings Reports Drive the Dow Today?

It's been a busy day for the market's most important tickers. No fewer than five of the 30 Dow (DJINDICES: ^DJI  ) companies reported earnings either last night or this morning. If you had expected these news-heavy tickers to set the tone for the Dow's trading action, you may be disappointed. Three of the five missed analysts expectations -- yet the Dow is trading up today anyhow.

How did these five blue chips fare last quarter? Let's take a look at the Dow's biggest movers.

Image source: UnitedHealth Group.

Let's start with the day's biggest winner. Shares of health insurance giant UnitedHealth Group (NYSE: UNH  ) have jumped 6.8% today on a combination of strong earnings and in-line sales. In the second quarter, revenue rose 12% year over year to $30.4 billion. Diluted GAAP earnings jumped 10% to $1.40 per share. Analysts were expecting sales of $30.5 billion and earnings of $1.25 per share.

UnitedHealth investors started the year in a skittish mood, haunted by the ghosts of sequestration and the implementation of Obamacare. But the stock started rising when UnitedHealth boosted its dividend and received an analyst upgrade in early June, and this earnings report proved the bullish analyst firm right (in the short term, at least). All told, shareholders have enjoyed a market-crushing 29% return in 2013 -- far above the Dow's 19% gain.

Image source: IBM.

The other winner is Dow heavyweight IBM (NYSE: IBM  ) , whose pricey shares have risen 1.8%. Like UnitedHealth, Big Blue beat analysts' earnings targets in the second quarter despite a not-so-impressive revenue performance. Non-GAAP diluted earnings per share improved 8% to $3.91 on revenue that was down 3% year over year to $24.9 billion.

Big Blue pulled off this two-headed performance by doing well in high-margin segments like software sales and mainframe server systems. That made up for flat revenue in the BRIC bloc and other supposedly high-growth markets, not to mention poor results in the mid-tier server markets.

For the second half of the year, management said the backlog of service orders is the strongest IBM has seen in the last four years. Combined with strong software sales, that points to improving margins and a better revenue performance in the back half of 2013. As a result, IBM increased its full-year earnings guidance by $0.20 per share.

Investors took the good news to heart, but IBM shares still lag the Dow in 2013. There's plenty of work to be done in this turnaround story, and the second quarter only provided a few first steps on a long journey. Just remember: Past performance is no guarantee of future returns. Despite this year's disappointments and headwinds, IBM remains a 4-star CAPS stock (out of 5), and my own bullish CAPScall on the stock stays in place for the long run.

Image source: Intel.

On the other side of the coin, you'll find American Express, Verizon, and Intel (NASDAQ: INTC  ) holding the Dow back today. The biggest drag of them all came from Intel.

Shares of Verizon and American Express fell about 3% at today's low, while Intel is down 3.9% at the time of writing. In this trio, only Intel failed to grow its earnings and sales by at least 10% and 4%, respectively. The chip giant still delivered both top-line and bottom-line results within its original guidance, but investors were hoping for more.

In particular, the PC division reported 7.5% lower sales compared with the same period in 2012, which looks like bad news for smaller rival Advanced Micro Devices (NYSE: AMD  ) . While Intel's performance was weak, it's still several percentage points stronger than the overall market's 11% swoon, according to industry watcher Gartner. With only two competitors fighting for slices of that shrinking market, it seems inevitable that AMD will report terrible results tonight. Intel's segment-leading performance must steal unit sales from the only other guy in the race.

Looking ahead, freshly appointed CEO Brian Krzanich promised to focus on "the best products for the fast-growing ultra-mobile market segment," which means doubling down on tablet and smartphone chips.

Before the report, I said that a big drop in Intel's share prices here might spell an investment opportunity. Well, the stock trades for just 11.6 times trailing earnings now, and I don't see the company falling apart. Krzanich has a plan for the increasingly mobile era, and servers will eventually bounce back. Intel shares may have underperformed the Dow so far in 2013, but they seem primed for a great long-term comeback. That's another bullish CAPScall that isn't going away -- and this time it's paired with a personal stake in Intel shares.

These earnings reports may move the market today, but they're often forgotten just a few quarters later. True investors always take a long-term view of the market. If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

Charting Albemarle's Latest Earnings Release

Albemarle (NYSE: ALB  ) reported earnings on July 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Albemarle missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP earnings per share increased significantly.

Gross margins shrank, operating margins dropped, net margins expanded.

Revenue details
Albemarle recorded revenue of $634.2 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $653.5 million on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $684.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.97. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.98 per share. Non-GAAP EPS of $0.97 for Q2 were 22% lower than the prior-year quarter's $1.24 per share. GAAP EPS of $0.98 for Q2 were 133% higher than the prior-year quarter's $0.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.0%, 440 basis points worse than the prior-year quarter. Operating margin was 17.7%, 380 basis points worse than the prior-year quarter. Net margin was 13.0%, 750 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $704.8 million. On the bottom line, the average EPS estimate is $1.36.

Next year's average estimate for revenue is $2.73 billion. The average EPS estimate is $4.68.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 220 members out of 235 rating the stock outperform, and 15 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Albemarle a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Albemarle is hold, with an average price target of $67.50.

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Top 5 Bank Companies To Own In Right Now

Love it or hate it, Obamacare is now the American health care system. But even ardent supporters acknowledge that it's not perfect. Some would prefer a universal health care system similar to several European countries.�

There is another path to potentially addressing shortcomings in the Patient Protection and Affordable Care Act, though. Singapore boasts one of the world's most effective and low-cost health systems. And it's quite different from what you'll find in much of Europe. Here are three intriguing ways that Obamacare could change to replicate some of Singapore's success.

1. Implement a new individual mandate
Singapore's health care system incorporates an individual mandate, but it's not what you might think. Instead of merely requiring citizens to purchase insurance, the country mandates that individuals save money for their health care needs. We're not talking piggy bank money, though. Singapore residents below the age of 50 pay 20% of their salaries, with another 16% kicked in by their employers. Those percentages decrease for older citizens.

Top 5 Bank Companies To Own In Right Now: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:

• [By Philip]

  Shares of Popular, Inc. (BPOP), of Hato Rey, Puerto Rico, closed at $1.75 Friday, declining 44% year-to-date. Based on a consensus price target of $3.55, the shares have 103% upside potential.

  The company owes $935 million in TARP money.

  Popular had $11.6 billion in total assets as of Sept. 30 and announced third-quarter earnings to common shareholders of $26.6 million, or 3 cents a share, compared to second-quarter earnings of $109.8 million, or 11 cents a share, and third-quarter 2010 earnings of $494.1 million, or 48 cents a share, when the company booked a $531 million gain on the sale of a 51% stake in its Evertec subsidiary.

  Third quarter earnings declined sequentially because of a $32 million increase in provisions for loan losses and because the second-quarter results included "a tax benefit of approximately $59.6 million related to the timing of loan charge-offs for tax purposes."

  Third-quarter provisions increased because the company on September 29 "completed the sale of construction and commercial real estate loans with an unpaid principal balance and net book value of approximately $358 million and $128 million, respectively," the majority of which were nonperforming loans.

  Following the earnings announcement, Cantor Fitzgerald analyst Michael Diana reiterated his "Buy" rating on Popular, raising his price target for the shares to $2.50 from $2.25.

  All five analysts covering Popular rate the shares a buy.

• [By Hilary Kramer]

  Popular (NASDAQ: BPOP) provides a range of retail and commercial banking products and services in Puerto Rico, the United States, Venezuela, the Dominican Republic, El Salvador and Costa Rica. The stock has dipped along with the entire banking sector, but as is often the case when sentiment is negative, I think investors have overreacted and knocked it down too much.

  Potential improvements in the Puerto Rican economy should help it bounce back, as well as clarity on the company’s recent decision to pull out of an agreement to sell non-performing construction loans. It’s important to note that Popular has already successfully sold a lot of its troubled loans, and the company’s capital levels are solid, which puts it in good position for a rebound once conditions improve.

Top 5 Bank Companies To Own In Right Now: Wilshire Bancorp Inc.(WIBC)

Wilshire Bancorp, Inc. operates as the holding company for Wilshire State Bank that offers a range of financial products and services. It accepts various deposit products that include certificates of deposit, regular savings accounts, money market accounts, checking and negotiable order of withdrawal accounts, installment savings accounts, and individual retirement accounts. The company?s loan portfolio comprises commercial real estate and home mortgage loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including personal loans, auto loans, and other loans. It also provides trade finance services that include issuance and negotiation of letters of credit, handling of documentary collections, advising and negotiation of commercial letters of credit, transfer and issuance of back-to-back letters of credit, and trade finance lines of credit. In addition, the company offers Internet banking services, auto matic teller machines, and armored carrier services. It has 24 full-service branch offices in Southern California, Texas, New Jersey, and the greater New York City metropolitan area; and 6 loan production offices in Colorado, Georgia, Texas, New Jersey, and Virginia. The company was founded in 1980 and is headquartered in Los Angeles, California.

Advisors' Opinion:

• [By Philip]

  Shares of Wilshire Bancorp (WIBC) of Los Angeles closed at $3.42 Friday, down 55% year-to-date. The shares have 18% upside potential, based on a mean 12-month price target of $4.04, among analysts polled by FactSet.

  The company had $2.7 billion in total assets as of Sept. 30, with 24 branches in Southern California, Texas, New Jersey, and the New York City area, and six loan production offices in n Colorado, Georgia, Texas (two offices), New Jersey, and Virginia.

  Wilshire Bancorp owes $62.2 million in federal bailout funds received through the Troubled Assets Relief Program, or TARP. The company raised $100 million in common equity during the second quarter, following an agreement with the Federal Deposit Insurance Corp. and state regulators to bring main subsidiary Wilshire State Bank's Tier 1 leverage ratio up to at least 10%. The Bank subsidiary's Tier 1 leverage ratio was 13.24% as of Sept. 30.

  The holding company reported third-quarter net income available to common shareholders of $10.2 million, or 14 cents a share, increasing from $2.1 million, or 4 cents a share, during the second quarter, and $5.0 million, or 14 cents a share, during the third quarter of 2010.

  The main factor in the earnings improvement was a reduction in credit costs, with a third-quarter provision for loan losses of $2.5 million, declining from $10.3 million the previous quarter and $18.0 million a year earlier. A $5.7 million decline in loan loss reserves during the third quarter directly boosted earnings.

  With the company continuing its aggressive reduction of its commercial real estate loan portfolio and its nonperforming loans, Wilshire Bancorp's total assets declined 17% from a year earlier. During the third quarter, the company sold $28.7 million in loans, most of which were nonperforming, for a gain of $1.7 million.

  Net interest income declined 14% year-over-year to $25.5 million in the third quarter, reflecting the balance sheet reduction.

  The net interest margin -- t! he difference between a bank's average yield on loans and investments and its average cost for loans and deposits -- was a strong 4.23% in the third quarter, which was down from 4.42% the previous quarter, but up from 3.393% a year earlier.

  Wilshire Bancorp's ratio of nonperforming assets to total assets was 2.46% as of Sept. 30, improving from 3.22% the previous quarter and 2.87% a year earlier. The annualized ratio of net charge-offs -- loan losses less recoveries -- to total loans was 0.46%, and with reserves covering 5.27% of total loans, the company appeared well-positioned for continued significant releases of reserves.

  FIG Partners analyst Timothy Coffey on Oct. 28 reiterated his "Outperform" or "Buy" rating for Wilshire Bancorp, raising his 12-month price target to $4.50 from $3.80, also "estimating tangible book values of $3.43 in 2011, $4.21 in 2012 and $4.84 in 2013." The analyst said that he anticipated that "could start to reverse the DTA-Deferred Tax Asset valuation allowance over the coming quarters," and that "the improvement in the earnings power has resulted in losses below management's projections, which has increased the valuation allowance to $40 million." Coffey estimated that "company could have no tax expense or very limited expense in 2012 before a normalized expense returns in 2013."

  The shares trade for 6.8 times the consensus 2012 earnings estimate of 50 cents, among analysts polled by FactSet, and just above their Sept. 30 tangible book value of $3.27, according to SNL Financial.

  Four out of seven analysts covering Wilshire Bancorp rate the shares a buy, while the remaining analysts all have neutral ratings.

10 Best Stocks To Invest In Right Now: New York Community Bancorp Inc (NYCB)

New York Community Bancorp, Inc. is a bank holding company and a producer of multi-family mortgage loans in New York City, with an emphasis on apartment buildings that feature below-market rents. It has two bank subsidiaries: New York Community Bank (the Community Bank),New York Commercial Bank (the Commercial Bank. The Community Bank has 241 branches and operates through seven divisional banks. The Commercial Bank has 34 branches in Manhattan and operates 17 of its branches under the divisional name Atlantic Bank.

During the year ended December 31, 2011, all of the one-to-four family loans the Company originated was sold to government-sponsored enterprises (GSEs). In New York, the Company serves its Community Bank customers through Roslyn Savings Bank, with 55 branches on Long Island; Queens County Savings Bank, with 34 branches in the New York City borough of Queens; Richmond County Savings Bank, with 22 branches in the borough of Staten Island, and Roosevelt Savings Bank, with eight branches in the borough of Brooklyn. As of December 31, 2011, in the Bronx and neighboring Westchester County, the Company had four branches that operated directly under the name New York Community Bank.

In New Jersey, the Company serves its Community Bank customers through 51 branches that operate under the name Garden State Community Bank. In Florida and Arizona, where it has 25 and 14 branches, respectively, the Company serves its customers through the AmTrust Bank (AmTrust) division of the Community Bank. In Ohio, the Company serves its Community Bank customers through 28 branches of Ohio Savings Bank. Customers of the Community Bank and the Commercial Bank have access to their accounts through 261 of its 285 automatic teller machines (ATMs) locations in five states. The Company also serves its customers through three Websites, which include www.myNYCB.com, www.NewYorkCommercialBank.com and www.NYCBfamily.com.

Lending Activities

The Company�� principal asset is l! oans. Its loan portfolio consists of three components: covered loans, non-covered loans held for sale and non-covered loans held for investment. As of December 31, 2011, the balance of covered loans was $3.8 billion, of which $3.4 billion were one-to-four family loans. Non-covered loans held for sale consists of the one-to-four family loans that are originated for sale, primarily to GSEs. At December 31, 2011, the held-for-sale loan portfolio totaled $1.0 billion

As of December 31, 2011, loans held for investment consisted of loans that it originates for its own portfolio, and totaled $ 25.5 billion.

In addition to multi-family loans, loans held for investment include commercial real estate loans (CRE); acquisition, development and construction (ADC) loans; commercial and industrial loans (C&I), and one-to-four family loans. As of December 31, 2011, its multi-family loans represented $17.4 billion, or 68.3%, of total loans held for investment, and represented $5.8 billion, or 64.1%, of the total loans that it originated for investment. The multi-family loans it originates are typically secured by non-luxury apartment buildings in New York City. It also makes multi-family loans to property owners who are seeking to expand their real estate holdings by purchasing additional properties.

As of December 31, 2011, CRE loans represented $6.9 billion, or 26.9%, of total held for investment; ADC loans represented $445.7 million, or 1.7%, of total loans held for investment. Its ADC loan portfolio consists of loans that were originated for land acquisition, development, and construction of multi-family and residential tract projects in New York City and Long Island.

C&I loans represented $600.0 million, or 2.4%, of total held for investment. It also offers a range of loans to small and mid-size businesses for working capital (including inventory and receivables), business expansion, and the purchase of equipment and machinery. Non-covered one-to-four family loans totaled $127! .4 millio! n at December 31, 2011.

Investment Activities

The Company�� securities portfolio primarily consists of mortgage-related securities, and debt and equity (other) securities. Its investments include GSE certificates, GSE collateralized mortgage obligations (CMOs) and GSE debentures. The Community Bank and the Commercial Bank are members of the Federal Home Loan Bank of New York (FHLB-NY), one of 12 regional Federal Home Loan Banks (FHLBs) consisting of the FHLB system. As of December 31, 2011, the Company�� securities represented $4.5 billion, or 10.8%, of total assets. As of December 31, 2011, 93.7% of its securities portfolio consisted of GSE obligations; held-to-maturity securities represented $3.8 billion, or 84.0%, of total securities, and its investment in bank-owned life insurance (BOLI) was $769.0 million.

Source of Funds

The Company has four primary funding sources. These include the deposits that it added through its acquisitions or gathered through its branch network, and brokered deposits; wholesale borrowings, primarily in the form of FHLB advances and repurchase agreements with the FHLB and various brokerage firms; cash flows produced by the repayment and sale of loans, and cash flows produced by securities repayments and sales. As of December 31, 2011, deposits totaled $ 22.3 billion, which included certificates of deposit (CDs) of $7.4 billion; negotiable order withdrawal (NOW) and money market accounts of $8.8 billion; savings accounts of $ 4.0 billion, and non-interest-bearing accounts of $2.2 billion. As of December 31, 2011, the Company�� borrowed funds totaled $14.0 billion, loan repayments and sales generated cash flows of $15.0 billion, and securities sales and repayments generated cash flows of $4.2 billion.

Subsidiary Activities

As of December 31, 2011, Community Bank had 34 subsidiary corporations. Of these, 22 are direct subsidiaries of the Community Bank and 12 are subsidiaries of Community Bank! -owned en! tities. The 22 direct subsidiaries of the Community Bank include DHB Real Estate, LLC, Mt. Sinai Ventures, LLC, NYCB Community Development Corp., NYCB Mortgage Company, LLC, Eagle Rock Investment Corp., Pacific Urban Renewal, Inc., Somerset Manor Holding Corp., Synergy Capital Investments, Inc., 1400 Corp., BSR 1400 Corp., Bellingham Corp., Blizzard Realty Corp., CFS Investments, Inc., Main Omni Realty Corp., NYB Realty Holding Company, LLC, O.B. Ventures, LLC, RCBK Mortgage Corp., RCSB Corporation, RSB Agency, Inc., Richmond Enterprises, Inc. and Roslyn National Mortgage Corporation.

The 12 subsidiaries of Community Bank-owned entities include Bronx Realty Funding Company, LLC, Columbia Preferred Capital Corporation, Ferry Development Holding Company, Peter B. Cannell & Co., Inc., Roslyn Real Estate Asset Corp., Walnut Realty Funding Company, LLC, Woodhaven Investments Inc, Your New REO, LLC, Ironbound Investment Company, Inc.,The Hamlet at Olde Oyster Bay, LLC, The Hamlet at Willow Creek, LLC and Richmond County Capital Corporation.

The two direct subsidiaries of the Commercial Bank include Beta Investments, Inc., and Gramercy Leasing Services, Inc. The two subsidiaries of Commercial Bank-owned entities include Omega Commercial Mortgage Corp. and Long Island Commercial Capital Corp.

Top 5 Bank Companies To Own In Right Now: Northern Trust Corporation(NTRS)

Northern Trust Corporation, through its subsidiaries, provides asset servicing, fund administration, asset management, and fiduciary and banking solutions for corporations, institutions, families, and individuals worldwide. The company offers corporate and institutional services, including global master trust and custody, trade settlement, and reporting; fund administration; cash management; investment risk and performance analytical services; investment operations outsourcing; and transition management and commission recapture services. It also provides personal financial services, such as personal trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; brokerage services; and private and business banking services, as well as customized products and services. In addition, the company offers active and passive equity and fixed income portfolio management, as well as alternative asset classes comprisin g private equity and hedge funds of funds, and multi-manager products and advisory services. Further, it engages in fund administration, investment operations outsourcing, and custody business that provides specialized services to a range of funds, which include money-market, multi-manager, exchange-traded funds, and property funds for on-shore and off-shore markets. Additionally, the company provides administrative and middle-office services consisting of trade processing, valuation, real-time reporting, accounting, collateral management, and investor servicing. Northern Trust Corporation was founded in 1889 and is based in Chicago, Illinois.

Top 5 Bank Companies To Own In Right Now: Banco Bilbao Vizcaya Argentaria S.A. (BBVA.N)

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. The Company also has investments in some of Spain�� companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities. On August 21, 2009, through its subsidiary BBVA Compass, BBVA acquired certain assets of Guaranty from the United States Federal Deposit Insurance Corporation (the FDIC).

Spain and Portugal

The Spain and Portugal business area focuses on providing banking services and consumer finance to private individuals, enterprises and institutions in Spain and Portugal. The main business units included in the Spain and Portugal area Spanish Retail Netwo rk, which manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; Corporate and Business Banking, which manages business with small and medium enterprises (SMEs), large companies, institutions and developers in the Spanish market, and Other units, which includes consumer finance, that manages renting and leasing business, credit to individual and to enterprises for consumer products and Internet banking; European Insurance that manages the insurance business in Spain and Portugal, and BBVA Portugal, that manages the banking business in Portugal. The Spanish Retail Network unit services the financial and non-financial needs of households, professional practices, retailers and small businesses. The Corporate and Business Banking unit offers a range of services and products to SMEs, large companies, institutions and developers with specialized branch networks for each segment.

The Company