Friday, May 31, 2013

Friday's Top Upgrades (and Downgrades)

This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature a pair of new buy ratings for resorts operators Vail Resorts (NYSE: MTN  ) and SeaWorld Entertainment (NYSE: SEAS  ) . But the news isn't all good, so before we address those two, let's take a look at why one analyst thinks that...

Micron will get smaller 
Shares of NAND flash and DRAM memory maker Micron (NASDAQ: MU  ) are moving lower today, hurt in part by a downgrade from analysts at MKM Partners -- but not hurt too much.

Although it's technically bad news, MKM didn't do as much damage to Micron's share price as it might have, a fact resulting from two things: First, the downgrade was only to "neutral," and not the dread "sell" rating. Second, despite downgrading the stock to hold, MKM says it still thinks Micron shares are worth $13 apiece -- and with the stock still trading south of $12, that's hardly horrible news. But is MKM right? Is there still some room for upside in these shares?

Sadly, probably no. On one hand, things aren't quite as bleak as they look at Micron. While technically "unprofitable" from a GAAP-earnings perspective, Micron actually is generating a bit of free cash flow from its business. Over the past year, the company produced $235 million worth of real cash profits, and while that still leaves Micron trading for a heady 52 times FCF, at least it's a positive number.

With a long-term growth rate estimated at just over 14%, it's hard to say why anyone would want to buy Micron at these prices -- and that's probably why MKM no longer is telling people to buy. That said, a valuation this high also leaves me scratching my head, and wondering why the analyst stopped short at a neutral rating, and didn't take the next, obvious step of downgrading all the way to "sell."

Vail: Climb this mountain?
Turning now to the good news of the day: Investors in Vail Resorts are running away from today's sideways market with a 1.6% pop, courtesy of -- you guessed it -- MKM Partners again.

MKM initiated coverage of the ski resorts stock with a buy rating and an $82 price target this morning. The question is, why?

At a price tag 90 times its trailing earnings, even Vail's robust 29% projected growth rate looks too gradual an incline to justify the stock's price. And yet, Vail generated just less than $126 million in real free cash flow over the past year. That's a number nearly five times as big as the firm's $25.7 million in reported GAAP income, and big enough to work the price-to-free cash flow ratio on this one down to just 18.2.

On a 29% growth rate, MKM's right -- this makes Vail stock an attractive vacation location for investor cash.

See the world, but not with SeaWorld
If only we could say the same about Busch Gardens operator SeaWorld Entertainment, just initiated at "overweight" by Barclays.

The Brit banker thinks this stock will sell for $40 a share a year from now, but with the stock already costing nearly $36, that hardly seems enough profit potential to justify a full-throated buy recommendation. The more so when you consider that SeaWorld may never hit that $40 price at all.

Remember, this stock already costs a pretty penny at more than 36 times trailing earnings. Its robust free cash flows ($169 million, trailing) mean SeaWorld's P/FCF ratio is quite a bit less -- about 20. But with a projected growth rate of only 8% going forward, and no dividend to recommend it, the stock looks like a less attractive deal than Vail's.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Vail Resorts.

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Thursday, May 30, 2013

Top 5 Supermarket Companies To Watch In Right Now

LONDON -- Top British supermarket�Tesco� (LSE: TSCO  ) (NASDAQOTH: TSCDY  ) is due to announce its annual results on April 17.

At the time of writing, Tesco's shares are trading at 380 pence -- up 17% from a year ago compared with a 13% rise for the FTSE 100.

How will Tesco's businesses have performed in 2012/13 compared with the previous year? And will the results justify the strong performance of the shares? Here's your cut-out-and-check results table!

�Metric

FY 2011/12

Forecast
FY 2012/13

Forecast
Growth

Revenue (excluding VAT, including petrol)

65.2 billion pounds

Top 5 Supermarket Companies To Watch In Right Now: SWS Group Inc.(SWS)

SWS Group, Inc., a diversified financial services holding company, provides a range of investment and commercial banking, and related financial services to individual, corporate, and institutional investors, as well as broker/dealers, governmental entities, and financial intermediaries in the United States. It operates in four segments: Clearing, Retail, Institutional, and Banking. The Clearing segment provides clearing and execution services for general securities broker/dealers, bank affiliated firms, and firms specializing in high volume trading. The Retail segment offers retail securities products and services, such as equities, mutual funds, and fixed income products; insurance products; and managed accounts. The Institutional segment provides securities lending, investment banking and public finance, fixed income sales and trading, proprietary trading, and agency execution services to institutional customers. The Banking segment offers various banking products and se rvices, including certificates of deposit, money market accounts, interest-bearing demand accounts, savings accounts, federal home loan bank advances, federal funds purchased, and non interest-bearing demand accounts, as well as one to four family residential loans and construction loans, lot and land development loans, commercial real estate loans, multi family loans, commercial loans, and consumer loans. SWS Group, Inc. was founded in 1972 and is headquartered in Dallas, Texas.

Top 5 Supermarket Companies To Watch In Right Now: Omega Protein Corporation(OME)

Omega Protein Corporation, a nutritional ingredient company, engages in the processing, marketing, and distribution of fish meal, oil, and soluble products. The company produces and sells various protein and oil products derived from menhaden, a herring-like species of fish found in the U.S. coastal waters of the Atlantic Ocean and Gulf of Mexico. Its fish meal products include the Special Select, a premium grade fish meal that is targeted for monogastrics, including baby pigs, pets, shrimps, and fish; SeaLac, a premium grade fish meal that is targeted for the ruminant industry; and Fair Average Quality Meal, a commodity grade fish meal that is used in protein blends for catfish, pets, and other animals. Omega Protein Corporation?s fish oil products comprise crude unrefined fish oil, refined fish oil, and food grade oils. Its oil products are used in food production, feed production, certain industrial applications, and dietary supplements. The company?s fish solubles in clude Neptune fish concentrate that is used as the attractant in commercial baits, as well as in shrimp and finfish diets; OmegaGrow, a liquid soil or foliar-applied fertilizer for plant nutrition; and OmegaGrow Plus, a liquid foliar-applied fertilizer for plant nutrition that also helps to control insect and fungus problems. The company sells its products in the United States Mexico, Europe, Canada, Asia, and South and Central America. Omega Protein Corporation was founded in 1998 and is based in Houston, Texas.

Top Gold Companies To Invest In Right Now: Takara Resources Inc (TKK.V)

Takara Resources Inc. engages in the acquisition, evaluation, exploration, and development of mineral properties, primarily gold. The company principally holds interests in the Tassawini gold project and the Arakaka joint venture project located in Guyana, South America. It also holds interest in the Miskamowin nickel project located in northern Manitoba. The company is based in Toronto, Canada. Takara Resources Inc. operates as a subsidiary of Victoria Gold Corp.

Top 5 Supermarket Companies To Watch In Right Now: Oil States International Inc.(OIS)

Oil States International, Inc., through its subsidiaries, provides specialty products and services to the oil and gas drilling and production companies worldwide. It operates in four segments: Accommodations, Offshore Products, Well Site Services, and Tubular Services. The Accommodations segment offers temporary and permanent work force accommodation services for people working in remote locations. The Offshore Products segment designs and manufactures flexible bearings and connector products; sub sea pipeline products; marine winches, mooring systems, and cranes and rig equipment; and conductor casing connections and pipes, as well as provides blowout preventer stack assembly, integration, testing, and repair services; and drilling riser and related repair services. The Well Site Services segment offers a range of products and services that are used to drill for, and establish and maintain the flow of oil and gas from a well throughout its lifecycle. This segment engages in the rental of wireline and coiled tubing pressure control equipment; wellhead isolation equipment; pipe recovery systems; thru-tubing fishing services; hydraulic chokes and manifolds; blow out preventers; well testing and flowback equipment; gravel pack operations on well bores; and surface control equipment and down-hole tools utilized by coiled tubing operators. This segment also provides land drilling services. The Tubular Services segment distributes a range of casing and tubing products; and offers threading, logistical, and inventory management services. The company serves national oil companies, independent oil and gas companies, onshore and offshore drilling companies, and other oilfield service and mining companies. Oil States International, Inc. was founded in 1995 and is based in Houston, Texas.

Top 5 Supermarket Companies To Watch In Right Now: Hot Topic Inc.(HOTT)

Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.

Advisors' Opinion:
  • [By Wyatt Research]

    The teen retailer reported its same-store sales rose 0.4 percent, with same-store sales at its Torrid chain for overweight teens rising 7 percent. Analysts were expecting a decline.

Wednesday, May 29, 2013

10 Best Restaurant Stocks To Own Right Now

Knowing your particular traveling style can make your adventures to exotic locations run more smoothly. Each style brings advantages and disadvantages; do you know yours?

If you are a Vacationer with limited travel time, you will probably be staying in more expensive hotels and eating most of your meals out in tourist-priced restaurants. Organized tours with a paid guide will appeal to you instead of venturing out on your own by taking local transport and being armed with a personal travel book and your own maps.

If you are a Visitor, you might have a little longer time frame in which to enjoy a place and perhaps you have found that you like to do more things independently. You probably speak some survival phrases in the native tongue and will choose to dine in local eateries.

10 Best Restaurant Stocks To Own Right Now: Celanese Corporation (CE)

Celanese Corporation, a technology and specialty materials company, engages in manufacture and sale of value-added chemicals, thermoplastic polymers, and other chemical-based products. It operates through four business segments: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates. The Advanced Engineered Materials segment offers specialty polymers for application in automotive, medical, and electronics products, as well as other consumer and industrial applications. The Consumer Specialties segment provides cellulose acetate flake, film, and tow that are primarily used in filter products applications; Sunett, a sweetener; and food protection ingredients, such as sorbates and sorbic acid for the food, beverage, and pharmaceutical industries. The Industrial Specialties segment produces emulsions and ethylene vinyl acetate (EVA) performance polymers. Its emulsions products are used in applications, such as paints and coatings, adhesives, construction, glass fiber, textiles, and paper; and EVA performance polymers are used in flexible packaging films, lamination film products, hot melt adhesives, medical products, automotive, carpeting and photovoltaic cells. The Acetyl Intermediates segment offers acetyl products, including acetic acid, vinyl acetate monomer, acetic anhydride, and acetate esters for use as starting materials for colorants, paints, adhesives, coatings, and medicines. It also provides organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. The company offers its products directly, as well as through distributors and electronic marketplaces in North America, Europe, Africa, the Asia-Pacific, and South America. Celanese Corporation was founded in 2004 and is headquartered in Dallas, Texas.

10 Best Restaurant Stocks To Own Right Now: EXACT Sciences Corporation(EXAS)

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing a molecular diagnostic technology for the early detection and prevention of colorectal pre-cancer and cancer. The company develops the Cologuard, a non-invasive stool-based DNA colorectal cancer screening test that is designed to detect each of the four stages of colorectal cancer, as well as pre-cancerous lesions. Its test includes proprietary and patented methods, which isolate and analyze the trace amounts of human DNA that are shed into stool every day from the exfoliation of cells that line the colon. The company?s Cologuard test is also used to detect blood in stool, utilizing an antibody-based fecal immunochemical test. It has a strategic alliance agreement with LabCorp under which it licenses its patents and patent applications relating to the stool-based colorectal cancer screening technology to LabCorp; a collaboration, license, and purchase agreement with Genzyme Corporation to d eliver intellectual property improvements through licenses; and a license agreement with MAYO Foundation for medical education and research. Exact Sciences Corporation was founded in 1995 and is headquartered in Madison, Wisconsin.

Hot Small Cap Stocks For 2014: Allied World Assurance Company Holdings AG (AWH)

Allied World Assurance Company Holdings, AG operates as a specialty insurance and reinsurance company in Bermuda, Hong Kong, Ireland, Singapore, Switzerland, the United Kingdom, and the United States. It offers casualty insurance products that provide coverage for specialty type risks, such as professional liability, environmental liability, product liability, inland marine liability, healthcare liability risks, and commercial general liability products, as well as professional liability products, including policies covering directors and officers, employment practices, and fiduciary liability insurance. The company also provides a mix of errors and omissions liability coverages for various service providers comprising law firms, technology companies, insurance companies, insurance agents and brokers, and municipalities; primary and excess liability, and other casualty coverages to the healthcare industry, including hospitals and hospital systems, managed care organization s, and medical facilities, such as home care providers, specialized surgery and rehabilitation centers, and outpatient clinics; and general casualty products for a range of industries consisting of construction, real estate, public entities, retailers, manufacturing, transportation, and finance and insurance services, as well as workers compensation insurance products. In addition, it offers property insurance products covering physical property and business interruption for commercial property risks; and general property products covering risks for retail chains, real estate, manufacturers, hotels and casinos, and municipalities. Further, the company provides the reinsurance of property, general casualty, professional liability, specialty lines, property catastrophe, accident and health, and marine and aviation coverages. Allied World Assurance Company Holdings, AG was founded in 2001 and is headquartered in Baar, Switzerland.

10 Best Restaurant Stocks To Own Right Now: L (MCG.V)

Melco China Resorts (Holding) Limited develops and operates ski resorts in China. Its portfolio includes Sun Mountain Yabuli, Sky Mountain Beidahu, The Lotus Mountain Club, Adventure Mountain Changchun, and Star Mountain Beijing resort properties in Beijing, Heilongjiang Province, and Jilin Province. The company offers a range of accommodations, including full-service hotels, condominium-hotels, and luxury resort homes. Melco China Resorts (Holding) Limited is based in Beijing, China.

10 Best Restaurant Stocks To Own Right Now: Amkor Technology Inc.(AMKR)

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. It offers package formats and services using wirebonding and flip chip interconnect technologies that connect the die to the package carrier. The company?s package carriers include leadframe packages that utilize metal and place the electrical interconnect leads to the system board around the perimeter of the package; substrate packages, which utilize a laminate as the package carrier; and wafer-level packages. It provides chip scale packages comprising stacked chip scale packages for chipsets and memory applications; package-on-package solutions for the integration of logic and memory in a single footprint; and system-in-package modules that integrate two or more chips and passive device elements into a single package. The company also offers ball grid array packages comprising flip chip ball grid array packages that are used with silicon nodes f or small devices and other applications; and plastic ball grid array packages, which use wirebond technology. In addition, it provides other packaging services, such as wafer bumping services. Further, the company offers semiconductor testing services, including wafer testing or probe, final testing, strip testing, and end-of-line test services; and specialized logistical services, such as security certification and anti-counterfeit measures. It primarily serves the communications, consumer, computing, networking, automotive, and industrial markets. Amkor Technology, Inc. was founded in 1968 and is headquartered in Chandler, Arizona.

10 Best Restaurant Stocks To Own Right Now: Miranda Gold Corp (MAD.V)

Miranda Gold Corp., a mineral exploration company, engages in the acquisition, exploration, and development of mineral properties in the United States and Colombia. The company primarily explores for gold properties. It holds interests in various properties located in Nevada, Alaska, and Colombia. The company was founded in 1993 and is headquartered in White Rock, Canada.

10 Best Restaurant Stocks To Own Right Now: Bank of South Carolina Corp.(BKSC)

Bank of South Carolina Corporation operates as the holding company for The Bank of South Carolina that provides commercial banking products and services to individuals, and small and medium-sized businesses in South Carolina. The company accepts a range of deposit products, which include checking accounts, negotiable order of withdrawal accounts, savings accounts, individual retirement accounts, and other time deposits, such as daily money market accounts and longer-term certificates of deposit. It also offers various commercial loans, including secured and unsecured loans for working capital, business expansion, and purchasing machinery and equipment; mortgage loans; industrial loans; real estate loans; loans to individuals for household, family, and other personal expenditures; and other loans, including overdrafts. In addition, the company provides Internet banking services, including online bill pay and remote deposit capture; credit cards; check card services; and saf e deposit boxes, letters of credit, travelers checks, direct deposit of payroll, social security and dividend payments, and automatic payment of insurance premiums and mortgage loans. Further, it offers a courier service and ACH origination service as part of its deposit services for commercial customers; and a portfolio of wealth management/trust, investment, and retirement services. The company has four banking house locations in Charleston, Summerville, and Mt. Pleasant, South Carolina. It serves customers in Berkeley, Charleston, and Dorchester counties. The company was founded in 1986 and is headquartered in Charleston, South Carolina.

10 Best Restaurant Stocks To Own Right Now: Red Metal Ltd(RDM.AX)

Red Metal Limited engages in the acquisition and exploration of mineral prospects in Australia. It primarily explores for uranium, gold, copper, silver, lead, zinc, nickel, zircon, titanium, and platinum group metals. The company holds interests in projects primarily located in the Mount Isa Inlier, Gawler Craton, Curnamona Province, and the Eucla Basin, as well as the Eastern Arunta region. It also explores for fertilizer mineral projects, including the Swift Hills Phosphate project in Queensland, Australia; and the Colorado Potash project located in Paradox Basin in the United States. The company is based in Sydney, Australia.

10 Best Restaurant Stocks To Own Right Now: Molson Coors Brewing Company(TAP)

Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. It sells its products in Canada, under the Coors Light, Molson, Rickard's Red, Carling, Pilsner, Keystone Light, Creemore Springs, and Granville Island brands. The company also brews or distributes products under license from third parties, which include Heineken, Amstel Light, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, it imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, the company sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Blue Moon, Henry Weinhard 's, George Killian's Irish Red, Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in the United Kingdom comprising Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as various regional ale brands. The company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd.; and distributes brands sold under license, including Corona, Coronita, Negra Modelo, Pacfico, Singha, and Magners Draught Cider. In addition, it markets and sells Zima, Si'hai, Coors Gold, and Coors Extra brands to various international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartere d in Denver, Colorado.

10 Best Restaurant Stocks To Own Right Now: MB Financial Inc.(MBFI)

MB Financial, Inc. operates as a bank holding company for MB Financial Bank, N.A. that provides various financial services to small and middle market businesses, and individuals in the United States. It offers commercial banking products and services, including credit products, comprising working capital loans and lines of credit, accounts receivable financing, inventory and equipment financing, industrial revenue bond financing, business acquisition loans, and owner occupied real estate loans, as well as financial, performance, and commercial letters of credit. The company?s commercial banking products and services also consists deposit treasury management products, such as Internet banking products, investment sweep accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, lockbox, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, wire transfers, vault services for currency and coin, international banking services, capital markets products, and checking accounts, as well as provides various credit, deposit, and treasury management services for real estate operators and investors. In addition, it offers retail banking products and services; and wealth management solutions, which include banking, investment management, custody, personal trust, financial planning, wealth advisory services, estate settlement, guardianship, tax deferred exchange services, and retirement plan services. The company provides its services through operating 87 banking offices in Chicago, Illinois metropolitan area; and 1 banking office in Philadelphia, Pennsylvania. MB Financial, Inc. was founded in 1911 and is headquartered in Chicago, Illinois.

Tuesday, May 28, 2013

3 Questions for the Next Chapter in Natural Gas Exports

For quite some time, people who follow the energy space have been waiting to see what the government would decide to do with natural gas exports. With opponents and proponents of exports spending big money on lobbying efforts, there was a little uncertainty on how the government would continue.

Now that ConocoPhillips (NYSE: COP  ) has received an export license for non-free trade agreement countries for its Freeport LNG facility, we have entered a new chapter in the natural gas export debate. This new phase also brings with it new questions. Let's examine three of these questions to see if it can shed some light onto this new territory.

Question 1: How much will we export? 
For the next couple of years, the answer to this question will depend heavily on one man: Dr. Ernest Moniz, the new secretary of energy. While Dr. Moniz is a proponent of LNG exports, he is not about to let natural gas exports go unfettered. LNG exports will have to be treated as a balancing act. How much can the U.S. realistically export without drastically affecting prices here?

The two facilities that have non-free trade agreement licenses already, Cheniere Energy's (NYSEMKT: LNG  ) Sabine Pass and ConocoPhillips' Freeport LNG, will have a combined export capacity of 3.6 billion cubic feet per day, which is about 5.2% of all U.S. production today. It is very likely that more licenses will be administered. If all applications were granted, though, the U.S. would have capacity to export 41% of total domestic production. The chances of us exporting that much gas are next to nothing, since it would likely have a big influence on domestic prices. This raises the next question.

Question 2: How will this change gas prices?
Study upon study have been done looking at how exports will affect natural gas prices, and all of them are more or less based on who has performed the studies. A study in January conducted by The U.S. Energy Information Administration modeled the effect of natural gas exports on price using various scenarios that varied in total gas exported and rate at which these facilities are brought online. In the most severe case (high total export volumes adapted very quickly), natural gas prices would be 35% higher than the reference case in 2018, but would subside as production caught up. The more modest approaches never saw a price increase greater than 20%.

One of the reasons that natural gas exporters do not want to see prices rise too sharply is because it would completely wipe out their competitive advantage in the global natural gas market. According to Richard Bass and Gordon Pickering of Navigant Consulting, the costs for liquefaction and transportation for natural gas costs approximately $4.00 per million BTUs. For American natural gas exports to be competitive, prices here need to be low enough that the price of gas plus the processing cost (and profit) are less than spot prices in other countries. This will give gas prices in the U.S. some wiggle room, but not much if companies want LNG to remain profitable.

Question 3: How should investors play LNG exports?
The energy space has a lot of moving parts, and sometimes getting a pulse on the entire industry can be difficult. So rather than trying to find some convoluted investment theory regarding natural gas, let's boil it down to one take-home message: Demand for natural gas will go up. 

Using this simple thesis not only makes the whole idea of LNG exports rather simple, it doesn't need to drastically change the way you think about the energy space already. For those who are a little more tolerant of risk, natural gas producers should look a bit more attractive. Low-cost producers like Ultra Petroleum (NYSE: UPL  ) and Exco Resources (NYSE: XCO  ) beat analyst expectations this past quarter because the small uptick in gas prices gave them enough room to profit. If we were to see an uptick in demand thanks to natural gas, then these companies could stand to profit greatly. 

These two companies, just like all exploration and production companies, will still be at the whim of commodity price risks. So swings in natural gas prices could eat into that profit. For the more risk-averse investor, these new LNG facilities will need to have gas brought to them, and the only feasible way to do that right now is natural gas. Look for companies that will be building out pipelines to these new facilities, as they will be able to get a decent chunk of the action without as much exposure to commodity prices. Natural gas pipeline giant Kinder Morgan (NYSE: KMI  ) will more than likely be reaping benefits from this action in the years to come. 

What a Fool believes
The book about natural gas exports is not completely written, and it be a few more years before we see a definitive conclusion on where natural gas exports will take us. This work may not be of the length of War and Peace, but it will take longer to finish than we may have hoped. 

It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size -- it's the fourth-largest energy company in the U.S. – not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity -- as well as the risks to watch out for -- in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.

Buffett's Single Greatest Accomplishment

One of the benefits of attending the Berkshire Hathaway (NYSE: BRK-B  ) shareholders' meeting is learning from the great value investors and Buffettologists who also make the yearly trek to Omaha. In this multipart series, Fool analyst Rex Moore speaks with Lawrence Cunningham, author of The Essays of Warren Buffett: Lessons for Corporate America. The book offers a unique approach by arranging all of Buffett's shareholder letters thematically, rather than chronologically.

Today, Professor Cunningham talks about one of Warren's most amazing accomplishments.

Is Berkshire for you?
Thanks to the savvy of investing legend Warren Buffett, Berkshire Hathaway's book value per share has grown a mind-blowing 586,817% over the past 48 years. But with Buffett aging and Berkshire rapidly evolving, is this insurance conglomerate still a buy today? In The Motley Fool's premium report on the company, Berkshire expert Joe Magyer provides investors with key reasons to buy as well as important risks to watch out for. Click here now for instant access to Joe's take on Berkshire!

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Monday, May 27, 2013

Starbucks Appoints Chiquita Exec As Supply Chain Executive VP

Starbucks  (NASDAQ: SBUX  ) has appointed Deverl Maserang to lead the company's Global Supply Chain Organization, the company announced Thursday.
 
Beginning June 3, Maserang will become executive vice president responsible for supply chain operations worldwide, which encompasses responsibilities from manufacturing and engineering to procurement and inventory management. Maserang joins Starbucks from Chiquita Brands International and brings more than two decades of experience in supply chain leadership positions. In leading the Global Value Chain for Chiquita and Fresh Express, he oversaw about 20,000 employees. Before Chiquita, Maserang worked in supply chain positions at Pepsi Bottling Group, United Parcel Service, and several start-ups.
 
Maserang will report to Starbucks CFO Troy Alstead, who is also the company's chief administrative officer, and be a part of the company's Senior Leadership Team. Maserang's appointment follows other recent, senior leadership appointments by the company. After its first-quarter report, Starbucks moved around five people in its Senior Leadership Team.

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Sunday, May 26, 2013

Reviewing the Z10: Is BlackBerry's Savior a Flop?

BlackBerry's (NASDAQ: BBRY  ) new Z10 smartphone has been widely touted as a critical step in the company's efforts to regain its former glory against Google's (NASDAQ: GOOG  ) Android platform and Apple's (NASDAQ: AAPL  ) iOS. How does the device perform?

Motley Fool analyst Rex Moore used the phone for several weeks and offers his review in the following video. With the help of tech experts Andrew Tonner and Robert Brokamp, Rex argues that the Z10 is a great device, but it won't be the product that's going to drive a significant number of new customers to BlackBerry.

Who wins the tech war?
Meanwhile, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded 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 among the five kings of tech. Click here to keep reading.

Saturday, May 25, 2013

Top Industrial Disributor Stocks To Own Right Now

Filtration systems specialist Donaldson� (NYSE: DCI  ) �announced yesterday�its second-quarter dividend of $0.13 per share, a�30% increase from the $0.10 per share payout it made last quarter.

The board of directors said the quarterly dividend is payable on June 21 to the holders of record at the close of business on June 7.�It marks Donaldson's 231st�consecutive quarterly cash dividend paid over 57 years, and is the 27th consecutive year it has raised the payout.

Donaldson CEO Bill Cook�said, "Our updated dividend payout policy, combined with our long-standing practice of repurchasing an average of 2 percent of our outstanding shares each year, firmly demonstrates our commitment of returning a high percentage of our earnings to our Shareholders while continuing to grow our Company's sales and earnings."

Top Industrial Disributor Stocks To Own Right Now: Interm.cap(ICP.L)

Intermediate Capital Group PLC is a private equity firm specializing in mezzanine financing and mid-market investments in growth capital, restructuring, acquisitions, public to private transactions with or without private equity backing, management buyouts and management buyins, development capital, public quoted company finance, off-balance-sheet finance, refinancings and recapitalizations, and pre-IPO financing. The firm does not invest in property companies or start-ups. It seeks to invest in companies whose principal place of business is the European Union, Bulgaria, Romania, North America, and the Asia Pacific, including Hong Kong, South Korea, Singapore, Taiwan, Japan, Australia, and New Zealand. The firm provides mezzanine financing in the range between ?15 million ($21.43 million) and ?500 million ($714.18 million) to firms with an enterprise values between ?250 million ($338.48 million) and ?1 billion ($1353.94 million). The firm seeks to acquire minority stak es. It generally structures its financing in the form of subordinated loan with equity warrants, as preference shares, convertible loan, leveraged loans, mezzanine loans, and CDOs. The firm provides loans for a maturity period between seven years and ten years with repayments to be made in one payment at final maturity. Its mezzanine investments are usually structured to provide a cash yield between three percent and four percent over the relevant interbank rate, plus an additional return to reflect the risk involved. The firm seeks to invest in debt. The firm is also a manager of third party mezzanine, CDO, and Institutional Client Funds. Intermediate Capital Group PLC was founded in 1989 and is based in London with additional offices across Europe, North America, and Asia.

Top Industrial Disributor Stocks To Own Right Now: Data#3 Ltd (DTL.AX)

Data#3 Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions company in Australia and the Asia Pacific. The company provides software licensing, software asset management, and workforce productivity solutions to optimize and manage the acquisition and use of software licensed in volume from global manufacturers; integrated solutions to design and deploy hardware and software infrastructure for the desktop, network, and data centre; and product solutions for procuring, configuring, rolling-out, and disposing of technology cost effectively. It also offers managed services to provide outsourced solutions for infrastructure operations, support, and maintenance; and people solutions to provide contract and permanent recruitment and human capital performance management. The company�s services include strategic consulting, software licensing, asset management, business productivity, SaaS, security, hardware procurement and lif ecycle management, mobility, recruitment and HR, managed operations and support, maintenance, IaaS, end-user support, datacenter, virtualization, systems management, network integration, disaster recovery, collaboration, end-user computing, and enterprise productivity applications. The company serves a range of industries, including banking and finance, mining, tourism and leisure, legal, healthcare, manufacturing, distribution, government, and utilities sectors. Data#3 Limited was founded in 1977 and is headquartered in Toowong, Australia.

5 Best Heal Care Stocks To Own For 2014: NuFarm Ltd(NUF.AX)

Nufarm Limited, together with its subsidiaries, operates as a crop protection company worldwide. The company engages in the manufacture and supply of agricultural chemicals, including turf and ornamental, glyphosate, insecticide, fungicide, and non-glyphosate herbicides. It also operates a seeds business focusing on canola, sorghum, and sunflower seeds, as well as offers seed treatment products. The company supplies its products to farmers to protect crops from damage caused by weeds, pests, and diseases. Nufarm Limited sells its products in 100 countries. The company is headquartered in Laverton, Australia.

Top Industrial Disributor Stocks To Own Right Now: Daily Journal Corp.(S.C.)

Daily Journal Corporation publishes newspapers and Web sites in California, Arizona and Colorado. It publishes 11 newspapers that include Los Angeles Daily Journal, Daily Commerce, San Francisco Daily Journal, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Sonoma County Herald-Recorder, Orange County Reporter, San Diego Commerce, Business Journal, and The Record Reporter. The company also offers California Lawyer magazine; produces various specialized information services; and serves as a newspaper representative specializing in public notice advertising. In addition, Daily Journal Corporation, through its subsidiary, Sustain Technologies, Inc., supplies case management software systems and related products to courts and other justice agencies, including administrative law organizations to help users manage electronic case files from inception to disposition, which include various aspects of calendaring and accounting, report and notice generation, the i mplementation of standards and business rules, and other corollary functions. The company was founded in 1986 and is based in Los Angeles, California.

Top Industrial Disributor Stocks To Own Right Now: Paid, Inc.(PAYD)

Paid, Inc. focuses on providing brand-related services to businesses and celebrity clients in the entertainment, sports, and collectible industries. The company?s brand management, brand marketing, social media marketing, product design and merchandising, and authentication services, as well as Website design, development, and hosting services help its clients in growing their customer base in size, loyalty, and revenue generation. It offers entertainers, celebrity athletes, and business entities Web-presence and related services supporting and managing clients? official Websites and fan-community services, including e-commerce, VIP ticketing, live event fan experiences, user-generated content, client content publishing and distribution, fan forums, social network management, and social media marketing, as well as customer data capture, management, and analysis. Its brand support services also comprise design and production of print, audio, and video promotion marketing ma terials for client branded products and events. In addition, Paid, through official fan Website stores and other Web-based outlets, and on-tour and retail outlets, sells merchandise for celebrities. Further, the company, through AuctionInc, offers a suite of online shipping management tools, which assist businesses with e-commerce storefronts, shipping solutions, inventory management, and auction processing. Paid, Inc. was founded in 1986 and is based in Worcester, Massachusetts.

Advisors' Opinion:
  • [By Fitz Gerald]

    Paid Inc. (OTC: PAYD)PAID is a one-stop brand management and marketing resource to music, entertainment and sports personalities and organizations, and offers AuctionInc online shipping calculation and shopping cart software employing its patented technology to streamline ecommerce. (OTC:PAYD), (PAYD)

Friday, May 24, 2013

Best Defense Companies To Invest In Right Now

Last week, defense juggernaut Northrop Grumman (NYSE: NOC  ) officially launched its CUTLASS unmanned ground vehicle, or UGV for short.

Northrop Grumman CUTLASS UGV. Image Source: Northrop Grumman

In describing the new robot, Northrop managing director Greg Roberts stated:

Our CUTLASS vehicle is setting new standards in the UGV market and significantly enhancing the ability of users to handle hazardous threats safely. It is more dexterous, cost effective and, as a package, four times faster than any other UGV.�The vehicle is already in service across the U.K. and has proven itself to be robust and capable in the most demanding environments. We look forward to exploiting the potential opportunities for exporting this capability into international markets.

Best Defense Companies To Invest In Right Now: Methanex Corporation (MEOH)

Methanex Corporation, together with its subsidiaries, engages in the production, marketing, and sale of methanol. The company also purchases and re-sells methanol produced by others. Its methanol is a clear liquid commodity chemical that is used to produce traditional chemical derivatives, including formaldehyde, acetic acid, and various other chemicals. The company�s methanol is also used in energy-related applications; for blending into gasoline, as a feedstock in the production of dimethyl ether, which can be blended with liquefied petroleum gas for use in household cooking and heating, and in the production of biodiesel; and used to produce methyl tertiary-butyl ether, a gasoline component, as well as used into olefins applications. The company supplies its methanol to petrochemical producers and distributors in North America, the Asia Pacific, Europe, and Latin America. Methanex Corporation was founded in 1968 and is headquartered in Vancouver, Canada.

Best Defense Companies To Invest In Right Now: Transpac Industrial Hldgs Ltd (T55.SI)

Transpac Industrial Holdings Limited, an investment holding company, provides venture capital to companies with capital appreciation potential in Asia. It invests in the securities of growing private companies principally located in China/Hong Kong SAR, Taiwan, Singapore, Malaysia, Thailand, and Indonesia. The company is based in Singapore.

5 Best Energy Stocks To Own Right Now: MOD-PAC CORP.(MPAC)

MOD-PAC Corp. designs, manufactures, and markets folding cartons, stock packaging, and print products in the United States and Canada. It provides custom folding cartons for customers in the healthcare, confectionary, food and food service, and automotive industries, including private label manufacturers. The company also sells stock packaging products, including a collection of candy boxes and gourmet bags, and trays and other complementary items for the independent confectionary industry through distributor networks and on direct basis, as well as provides retail packaging solutions for gift retailers and general consumer use. In addition, it produces and markets various customized products, including invitations, napkins, announcements, bags, boxes, and various accessory product line for various social occasions, such as corporate events, weddings, bar/bat mitzvahs, graduations, and anniversaries. The company offers its customized products to corporate and consumer mark ets through retailers, including bridal and gift shops, and branded Internet Web resellers, as well as through the partybasics.com and myweddingbasics.com Websites, and retail outlet store located in its facilities. Further, it provides design assistance, finishing, and digital asset management services. MOD-PAC Corp. was founded in 1881 and is headquartered in Buffalo, New York.

Thursday, May 23, 2013

Top High Tech Stocks To Watch Right Now

In case you couldn't tell from the gasoline prices in your area, oil prices have been on the move. The chart below pretty much says it all.

As you can see, benchmark West Texas Intermediate Crude has been bubbling higher lately, and prices have now ascended into near triple-digit territory. For the record, that's an impressive 120% bounce off the lows from January 2009.

There are compelling reasons to believe these elevated prices might stick around for a while. In fact, further upside to $150 is a distinct possibility. That could act as an economic drag, siphoning money from consumers and sparking inflationary price hikes for goods and services.

Top High Tech Stocks To Watch Right Now: Pacific Biosciences of California Inc.(PACB)

Pacific Biosciences of California, Inc., a development stage company, develops, manufactures, and markets an integrated platform for genetic analysis. The company engages in developing a technology platform that enables single molecule, real-time (SMRT) for the detection of biological processes. It primarily focuses on the deoxyribonucleic acid sequencing market. The company?s product includes the PacBio RS, a sequencing platform, which consists of an instrument platform that uses its proprietary consumables, such as SMRT Cells and reagent kits. The company?s customers include genome centers, genomics service providers, and agricultural companies, as well as clinical, government, and academic institutions. Pacific Biosciences of California, Inc. was founded in 2000 and is headquartered in Menlo Park, California.

Top High Tech Stocks To Watch Right Now: Compass Gold Corporation (CVB.V)

Compass Gold Corporation, an exploration stage company, focuses on gold exploration in Africa. It holds an option to acquire an indirect 51% working interest in 4 gold exploration permits, including the Yanfolia license covering 250 square kilometres in south Mali; the Dandoko license covering an area of 134 square kilometres located in west Mali; the Kolondieba permit covering 250 square kilometres in south Mali; and the Solabougouda license covering an area of 250 square kilometres in south Mali. The company, formerly known as Nordic Gold Corporation, is based in Vancouver, Canada.

Top Heal Care Stocks For 2014: Eagle Bulk Shipping Inc.(EGLE)

Eagle Bulk Shipping Inc. engages in the ocean transportation of bulk cargoes in the dry bulk industry. The company primarily transports iron ore, coal, grain, cement, and fertilizer along worldwide shipping routes. As of December 31, 2009, it owned and operated a fleet of 27 oceangoing vessels with a combined carrying capacity of 1,412,535 deadweight tons. The company was founded in 2005 and is headquartered in New York, New York.

Top High Tech Stocks To Watch Right Now: B2Gold Corp(BTO.TO)

B2Gold Corp., together with its subsidiaries, engages in the acquisition, development, and exploration of mineral properties. It primarily explores for gold and silver deposits. The company?s property portfolio comprises the La Libertad gold mine and the El Limon gold mine in Nicaragua; Ojtikoto gold project in Namibia; Cebollati property in Uruguay; Bellavista property in Costa Rica; and Quebradona, Gramalote, and Mocoa properties in Colombia. B2Gold Corp. was incorporated in 2006 and is headquartered in Vancouver, Canada.

Top High Tech Stocks To Watch Right Now: Alvarion Ltd.(ALVR)

Alvarion Ltd. supplies top-tier carriers, Internet service providers (ISPs), and private network operators with solutions based on the worldwide interoperability for Microwave Access (WiMAX) standard, as well as other wireless broadband solutions. The company provides WiMAX and non-WiMAX wireless broadband systems, and launched 250 commercial WiMAX deployments worldwide. Its solutions are designed to cover a range of frequency bands with fixed, portable, and mobile applications to enable the delivery of personal broadband services, business and residential broadband access, corporate virtual private network (VPN), toll quality telephony, mobile base station feeding, hotspot coverage extension, and services for various vertical markets, such as municipalities, public safety, mining, utilities, video surveillance, and border control. The company?s business mainly focuses on solutions, based on the WiMAX standard, that are used for primary wireless broadband access. In addit ion, Alvarion sells its non-WiMAX products, which address point-to-point and point-to-multipoint architectures for various end-user profiles, including residential, small office/home office, small/medium enterprises, multi-tenant/multi-dwelling units, and large enterprises, as well as provides network management solutions for its wireless solutions. Its solutions provide high-speed wireless ?last mile? connection to the Internet for homes and businesses in both developed and emerging markets. The company was formerly known as BreezeCOM Ltd. and changed its name to Alvarion Ltd. as result of merger with Floware Wireless Systems Ltd. in August 2001. Alvarion Ltd. was founded in 1992 and is headquartered in Tel Aviv, Israel.

Advisors' Opinion:
  • [By Sy_Harding]

    This is a backdoor play on the growth in the developing world. The company supplies the WiMax networks that allow people in the developing world to get Internet access. This will be a high growth area but also at $3.80 a share, Alvarion is dirt cheap. It has $2.50 a share in cash in the bank, no debt, and is expected to earn 14 cents a share next year. Trading at less than 10 times earnings (when you back out the cash) and with the safe cushion of the cash, this stock is very attractive.

Wednesday, May 22, 2013

This Trend Could Bottle Up Coca-Cola's Stock

We may have our love affair with beer, wine, and spirits, but none of those beverages can quench our thirst for profits like bottled water does. Coca-Cola (NYSE: KO  )  as one of the premier bottled water companies, saw case volumes surge 10% in 2012 for its Dasani brand, and they were up 6% in the first quarter of 2013.

At 3.2% compounded annual growth between 2005 and 2011, bottled water has surpassed beer's 2.2% increase in that time frame and is on equal footing with the better-than-3% rise in wine and spirits sales. It's far outpacing the seven consecutive years of carbonated beverage volume declines, too.

Drinking from a firehose
While water may not be enjoying the same double-digit growth rates it enjoyed in the last decade, it is recovering enough to begin building up some heady growth again. After two straight years of declines in 2008 and 2009, bottled water's cup is running over again. Sales grew 2.6% in 2010 and were up 3.2% in 2011, and then they more than doubled to 6.7% last year. It may not be long before sales achieve double-digit growth once more.

Water, water everywhere
And therein lies the problem. Despite the marketing efforts of major bottled water sellers like Coke, PepsiCo (NYSE: PEP  )  (which owns Aquafina), and Nestle, there's really not that much difference between what they're selling you in their plastic bottles and what comes out of your tap. Indeed, a few years ago, Pepsi was forced to acknowledge that its Aquafina brand is nothing more than tap water. Nestle's Pure Life brand is also municipally sourced, as is Dasani, which Coke admits is just "purified" tap water. That's a big difference from "source water," which comes from a spring. 

Poland Spring's brand does actually come from the real Poland Spring in Maine, but only 30% worth. The rest is from other springs in the state including Clear, Evergreen, and Spruce, among others.

Tap that keg!
There's no difference, that is, except money. Bottled water sales totaled $11.8 billion last year, according to BottledWater.org. Yet if you're buying bottled water, you're paying simply for Coke's and Pepsi's marketing machines, which have created the impression that municipally treated water provided by facility operators like American Water Works and Aqua America is unsafe.

Admittedly, it bothers me when state governments force the fluoridation of water, for example, but there are means for removing it. Yet, in general, you'll do well for yourself financially and physically by drinking the water from your tap instead of buying bottled. It's why the bottlers themselves tap into it in the first place!

Still, Coca-Cola's stock at least ought to be able to bubble up again as consumers seem willing again to buy bottled water, perhaps letting the beverage maker catch lightning in a bottle again.

Coca-Cola's wide moat has helped provide its shareholders with superior gains in the past, but the company faces some new threats to its continued market dominance. The Motley Fool recently compiled a premium research report containing everything you need to know about Coca-Cola. If you own or are considering owning shares in the company, you'll want to click here now and get started.

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More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Tuesday, May 21, 2013

Bank of America Case Burns JPMorgan Chase

In the swirl of lawsuits facing the big banks over mortgage-backed securities, things can change seemingly on a daily basis. A recent example can be found in the sudden settlement between Bank of America (NYSE: BAC  ) and mortgage insurer MBIA (NYSE: MBI  ) , a squabble that had been brewing for some time, with no apparent end in sight.

Now, a suit AIG (NYSE: AIG  )  is pursuing against B of A has opened up a can of worms for peer JPMorgan Chase (NYSE: JPM  ) , as the judge in the latter case has cited the former litigation as proof that he had no jurisdiction to throw out claims by Dexia that MBSes it bought from Bear Stearns, Washington Mutual, and, on its own and as purchaser of those two entities, JPMorgan.

Venue change makes all the difference
The change stems from the fact that a New York appeals court is allowing the larger AIG v. Bank of America suit to be heard in state, rather than federal court. In the Dexia case, the judge used the Edge Act, which makes a distinction between domestic and foreign banking activities, to throw out the bulk of Dexia's case against JPMorgan.

But AIG's tenacity in its mission to recoup some of its crisis-era losses has spurred the megainsurer to push its case concerning $10 billion of crummy MBSes against B of A, despite a supposed vow to the latter by the New York Fed that the bank would not be responsible for such claims.

The decision to move the AIG case to a state rather than a federal venue was a big win for the insurer, and a blow to B of A. Now this complaint is proving to be a problem for JPMorgan, too.

Just the beginning?
Though the Dexia v. JPMorgan lititgation involves a small number of disputed securities -- 65 in all -- with a relatively small overall value of $774 million, this case is obviously important. At the time of the original ruling, the decision was hailed as a boon to big banks, which would now be considered immune from similar lawsuits.

JPMorgan apparently saw the suit as significant, as well, or it would not have put such time and effort into fighting it; given its small size, it surely would have been much cheaper to settle. Unfortunately for the big banks, this litigation news looks like the well-worn road of toxic MBS lawsuits just got a lot longer.

With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or if finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, check out The Motley Fool's premium research report on the company. Click here now for instant access!

Monday, May 20, 2013

How to Play the E-Commerce Trend in China

Consulting giant PricewaterhouseCoopers has just released a survey of the online shopping habits of more than 11,000 online shoppers in 11 countries. And according to PwC, the No. 1 country for e-commerce today is... China!

Take a look at some of these numbers:

$211 billion in annual online sales. 58% of shoppers, shopping online in the past week. 64% growth in e-commerce revenues over just the past year.

Clearly, China is turning into a big market for online marketing -- but who's best positioned to profit from it? In the video below, Fool contributor Rich Smith lays out the field of possibilities for you.

The titans of tech
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Hot Communications Equipment Stocks To Buy Right Now

French-American communications equipment giant Alcatel-Lucent (NYSE: ALU  ) reported its Q1 2013 financial results Friday.

Characterizing the results as showing "continued progress with The Performance Program," the company announced that revenues increased 0.6% in Q1 2013 over Q1 2012 levels, rising to 3,226 million euros ($4.2 billion).

Net losses for the quarter came to 353 million euros ($460 million), of which approximately one-third, 122 million euros, came from restructuring charges. On a per-share basis, this worked out to 16 euro cents lost per share, vs. last year's 10 cent euro profit. The company continued to burn cash as well, with operating cash flow running negative to the tune of 144 million euros before deducting capital expenditures.

Commenting on the last figure, Alcatel CEO Michel Combes observed: "Free cash-flow remains a challenge."

Hot Communications Equipment Stocks To Buy Right Now: Cisco Systems Inc (CSCO)

Cisco Systems, Inc., incorporated on December 10, 1984, designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate, and collaborate. Its products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses, and personal residences. The Company has five segments: United States and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan. The Emerging Markets theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States. In July 30, 2012, it acquired NDS Group Ltd. In October 2012, it acquired virtual networking company, vCider. In August 2011, the Company acquired Versly. In November 2011, it acquired BNI Video. In March 2012, the Company acquired Lightwire, Inc. In May 2012, the Company acquired ClearAccess. In December 2012, the Company acquired Cloupia. In December 2012, the Company acquired Cariden Technologies Inc. In December 2012, the Company acquired Meraki, Inc.

The Company�� product offerings fall into three categories: its core technologies, routing and switching; advanced technologies, and other products. In addition to its product offerings, the Company provides a range of service offerings, technical support services and advanced services. The advanced services program supports networking devices, applications, solutions, and complete infrastructures.

Routing

The Company offers a range of routers, from core network infrastructure for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at ho! me. Key products within its routing category are the Cisco ASR 901/903, Cisco 1000, 5000, and 9000 Cisco Aggregation Services Routers (ASR), as well as the Cisco ASR 800, 1900, 2900 and 3900 Cisco Integrated Services Routers (ISR):; Cisco CRS-1, 7600 and Cisco CRS-3 Cisco Carrier Routing Systems (CRS). During the fiscal year ended July 31, 2010 (fiscal 2010), Cisco introduced the Cisco CRS-3 Carrier Routing System (CRS-3) and Cisco 7600 Series Routers.

Service Provider Video

The Company�� end-to-end, digital video distribution systems and digital interactive set-top boxes enable service providers and content originators to deliver entertainment, information, and communication services to consumers and businesses around the world. Key product areas within its Service Provider Video category are: Set-Top Boxes, IP set-top boxes (both High-Definition (HD) and Standard Definition (SD)); Digital cable set-top boxes (both HD and SD); Cable Modem CPE (Data, EMTA, and Gateways); Videoscape Software Products and Headend Equipment (Encoders, Decoders, and Transcoders).

Switching

The Company�� switching products offer many forms of connectivity to end users, workstations, IP phones, access points, and servers, and also function as aggregators on local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs). Its switching systems employ several widely used technologies, including Ethernet, Power over Ethernet, Fibre Channel over Ethernet, Packet over Synchronous Optical Network, and Multiprotocol Label Switching. Many of its switches are designed to support an integrated set of advanced services, allowing organizations to be more efficient by using one switch for multiple networking functions rather than multiple switches to accomplish the same functions.

Cisco offers a family of Ethernet switching solutions from fixed-configuration switches for small and medium-sized businesses to modular switches for enterprise! s and ser! vice providers. Its fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. Key products within its switching category are the Cisco Catalyst 2960, 3560, 3750, 4500 and 6500 Series; the Cisco Nexus 2000, 3000, 5000 and 7000 Series switches; and MDS Series: MDS 9000.

Fixed-configuration switches are designed to cover a range of deployments in small and medium-sized businesses. It fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. They range from small, standalone switches to stackable models that function as a single, scalable switching unit. Modular switches are typically utilized by enterprise and service provider customers. Fixed-configuration and modular switches also include products such as optics modules which are shared across multiple product platforms.

NGN Routing

Routing technology is fundamental to the Internet, and this technology interconnects public and private IP networks for mobile, data, voice, and video applications. The Company's NGN Routing products are designed to enhance the intelligence, security, reliability, scalability, and level of performance in the transmission of information and media-rich applications. It offers a broad range of routers, from core network infrastructure and mobile Internet network for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at home. Key product areas within its NGN Routing category are, Cisco Aggregation Services Routers: Cisco ASR 901/903, Cisco ASR 1000, Cisco ASR 5000 and Cisco ASR 9000. Cisco Integrated Services Routers: Cisco ISR 800, Cisco ISR 1900, Cisco ISR 2900 and Cisco ISR 3900. Cisco Carrier Routing Systems: Cisco CRS-1, Cisco CRS-3 and Cisco 7600 Series Routers.

Security

Cisco security solutions deliver identity, network and content security solutions designed to enable customers to reduce the ! impact of! threats and realize the benefits of a mobile, collaborative, and cloud-enabled business. The products in this category span firewall, intrusion prevention, remote access, virtual private networks (VPNs), unified clients, network admission control, Web gateways, and email gateways. Its AnyConnect Secure Mobility Client solution enables users to access networks with their mobile device of choice, including laptops and smartphone-based mobile devices, while allowing organizations to manage the security risks of networks. Its cloud-based Web security service is designed to provide real-time threat protection and to prevent malware from reaching corporate networks, including roaming or mobile users. It focuses on a proactive, layered approach to counter both existing and emerging security threats. During the fiscal year ended July 28, 2012, it introduced the Cisco ASA 5500-X Series Midrange Security Appliance, Cisco Security Manager 4.3, the IPS 4500 Series, and Prime Security Manager.

Wireless

The Cisco Unified Wireless Network aims to harness the network to solve business problems, uniting high-performance wireless access across campus, branch, remote and outdoor environments. Its offerings include wireless access points (including the Cisco Aironet product family), controllers, antennas, and integrated management. The Company�� offerings provide users with simplified management and mobile device troubleshooting features which are designed to reduce operational cost and maximize flexibility and reliability. It is also investing in custom chipsets to deliver functions such as CleanAir proactive spectrum intelligence, ClientLink acceleration for mobile devices and VideoStream multicast optimization technology.

Data Center

The Company�� data center product category has been its major product category for the past two fiscal years. Cisco Unified Computing System (UCS) and Server Access Virtualization form the core of the Data Center product category.! Key prod! uct areas within its Data Center product category are: Cisco UCS B-Series Blade Servers, Cisco UCS C-Series Rack Servers and Cisco UCS Fabric Interconnects.

Other Products

The Company�� other products category primarily consists of Linksys home networking products, certain emerging technologies, and other networking products. In addition to its product offerings, it provide a range of service offerings, including technical support services and advanced services.

The Company competes with Alcatel-Lucent; ARRIS Group, Inc.; Aruba Networks, Inc.; Avaya Inc.; Belden Inc.; Brocade Communications Systems, Inc.; Check Point Software Technologies Ltd.; Citrix Systems, Inc.; D-Link Corporation; LM Ericsson Telephone Company; Extreme Networks, Inc.; F5 Networks, Inc.; Force10 Networks, Inc.; Fortinet, Inc.; Hewlett-Packard Company; Huawei Technologies Co., Ltd.; International Business Machines Corporation; Juniper Networks, Inc.; LogMeIn, Inc.; Meru Networks, Inc.; Microsoft Corporation; Motorola, Inc.; NETGEAR, Inc.; Polycom, Inc.; Riverbed Technology, Inc.; and Symantec Corporation.

Advisors' Opinion:
  • [By James K. Glassman]

     Cisco's shares have never recovered after sinking sharply after the tech bubble burst in 2000. But the company's balance sheet is rock solid, with cash far outweighing debts. And the stock is dirt-cheap, going for 9 times estimated earnings of $1.91 per share for the year that ends in July 2013. 

    The telecom-equipment giant began paying a dividend in 2011 and increased the quarterly payout by 2 cents, to 8 cents a share, in April. In mid August, Cisco announced another dividend increase, to 14 cents a share, starting with the October payment. Its stock, at $17.35, yields 3.2%. The company also bought back $4.4 billion worth of shares in the fiscal year that ended in July.

  • [By Jim Jubak]

     Cloud computing is a trend you want to own a part of -- Cisco Systems (CSCO) projects that global cloud traffic will make up 64% of total data center traffic by 2016, up from 29% in 2011. But how to buy in? Many of the biggest cloud-computing "companies" are actually units of larger companies rather than standalone businesses. I don't think buying Amazon.com (AMZN) to get its data center and cloud-computing business makes a whole lot of sense.

  • [By Jonas Elmerraji]

     As the standard bearer in the IP networking business, Cisco (CSCO) gets a lot of eyes on it. Despite a somewhat soft market for corporate spending, IT dollars have been flowing in the last several years as new trends like cloud computing up the infrastructure that firms need to offer customers. That's helped spur on the solid growth rates that Cisco's been booking in each of the last four years.

    A big installed base gives Cisco an inherent advantage in selling its big-ticket networking components. Because IT departments want minimal headaches when adding onto their infrastructure, going with a single vendor is typically the most painless approach -- and that's boosted customer stickiness for CSCO. That's not to say that there hasn't been increased competition lately; as enterprise IT spending continues to climb higher, more firms want to eat Cisco's lunch. To avoid that, the firm is going to have to keep innovating.

    One result of Cisco's dominant position in the IP networking business is a mountain of cash -- around $30 billion after all of its debt is accounted for. Cash comes with some concerns for big tech companies, namely the propensity to overpay for acquisition opportunities. And even though Cisco's latest targets haven't come cheap, they've been small enough to not dilute shareholder vale enough to matter. That said, Cisco's management needs to return more value to shareholders in the form of dividends or buybacks in this market -- holding $30 billion in cash in a low rate, [comparatively] high inflation environment isn't viable for long.

    The need to return cash to shareholders isn't exactly a secret, so when that value return happens, expect CSCO's share price to jump in kind…

Hot Communications Equipment Stocks To Buy Right Now: Research in Motion Ltd (BBRY.O)

Research In Motion Limited, incorporated on March 7, 1984, is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services, it provides platforms and solutions for seamless access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. The Company's technology also enables an array of third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data and third-party support programs.Its portfolio of products, services and embedded technologies are used by thousands of organizations and millions of consumers around the world and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools and other software and har dware.

On March 25, 2011, the Company purchased 100% of the shares of a company whose technology is being incorporated into the Company�� developer tools. On April 26, 2011, the Company purchased certain assets of a company whose acquired technologies will be incorporated into the Company�� products. In June 2011, the Company acquired Scoreloop. On March 8, 2012, the Company acquired Paratek Microwave Inc. During the fiscal year ended March 3, 2012 (fiscal 2012), the Company purchased 100% interests of a company, whose technology will be incorporated into its technology; whose technology offers cloud-based services for storing, sharing, accessing and organizing digital content on mobile devices; whose technology is being incorporated into an application on the BlackBerry PlayBook tablet; whose technology offers a customizable and cross-platform social mobile gaming developer tool kit, and whose technology will provide a multi-platform BlackBerry Enterprise Solution for managing and securing mobile devices for enter! p! rises and government organizations.

On April 24, 2012, the Company launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in Indonesia. April 18, 2012, it launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in India. On April 17, 2012, it announced availability of the BlackBerry Bold 9790 smartphone in Spain. On April 3, 2012, it launched BlackBerry Mobile Fusion, and launched four BlackBerry smartphones powered by the BlackBerry 7 operating system (OS) in Cambodia, which included BlackBerry Bold 9900, BlackBerry Bold 9790, BlackBerry Curve 9360 and BlackBerry Curve 9380. On April 2, 2012, it announced the availability of BlackBerry App World, the official application store for BlackBerry smartphones in Brunei, and it announced availability of the BlackBerry Bold 9790 and BlackBerry Curve 9380 smartphones for Cell C customers in South Africa. On March 27, 2012, it launched of the BlackBerry solution in Benin Republic. On March 15, 2012, it launched of BlackBerry services in China. On March 7, 2012, it launched the BlackBerry service in Angola.

The Company's primary revenue stream is generated by the BlackBerry wireless solution, consists of smartphones and tablets, service and software. BlackBerry service is provided through a combination of its global BlackBerry Infrastructure and the wireless networks of its carrier partners. On February 21, 2012, it released the BlackBerry PlayBook OS 2.0 software. It generates hardware revenues from sales, primarily to carriers and distributors. During fiscal 2012, the Company launched the wireless fidelity (WiFi)-enabled BlackBerry PlayBook tablet in 44 markets around the world. On July 21, 2011, the BlackBerry PlayBook tablet received Federal Information Processing Standard 140-2 certification.

BlackBerry Smartphones and Tablets

BlackBerry smartphones uses wireless, push-based technology that delivers data to m obile users��business and consumer applications. Black! Berr! y s! martph! ones integrate messaging including instant messaging, email and SMS; voice calling; Webkit browser; multimedia capabilities; calendar, and other applications. During fiscal 2012, it introduced 10 new smartphones and launched software updates to both its smartphone and tablet platforms. BlackBerry smartphones are available from hundreds of carriers and indirect channels, through a range of distribution partners, and are designed to operate on a variety of carrier networks, including HSPA/HSPA+/UMTS, GSM/GPRS/EDGE, CDMA/Ev-DO, and iDEN.

During fiscal 2012, its BlackBerry smartphone and tablet portfolio included BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series and The BlackBerry PlayBook tablet. Its BlackBerry Bold series includes BlackBerry Bold 9900 and 9930 and BlackBerry Bold 9790. The Company�� BlackBerry Torch series include BlackBerry Torch 9810 and All-Touch BlackBerry Torch 9850 and 9860. The Company's BlackBerry Curve series inc lude BlackBerry Curve 9350/9360/9370 and All-Touch BlackBerry Curve 9380 Smartphone. The BlackBerry PlayBook tablet features the BlackBerry PlayBook OS 2.0. The BlackBerry PlayBook offers a seven-inch high definition display, a dual core one gigahertz processor, dual high definition cameras, multitasking and a Web browsing.

BlackBerry Enterprise Solution

BlackBerry Enterprise Server is software that acts as the centralized link between BlackBerry smartphones, enterprise systems, business applications and wireless networks. BlackBerry Enterprise Server integrates with enterprise messaging systems including Microsoft Exchange, IBM Lotus Domino and Novell GroupWise to synchronize with BlackBerry smartphones to provide mobile users with wireless access to e-mail, calendar, contacts, notes and tasks. It also provides access to business applications and enterprise systems. In addition, it provides security features and offers administrative tools. BlackBe rry Enterprise Server is required for certain othe! r enterpr! i! se soluti! ons, such as BlackBerry Mobile Voice System (for bringing desk phone functionality to BlackBerry smartphones); BlackBerry Clients for Microsoft Office Communications Server, IBM Lotus Sametime and Novell GroupWise Messenger (for enterprise instant messaging); IBM Lotus Connections (for enterprise social networking); IBM Lotus Quickr (for document sharing and collaboration); and Chalk Pushcast Software (for corporate podcasting).

The Company�� BlackBerry Mobile Fusion provides a Web-based interface that allows enterprises to provision, audit, and protect mobile devices including BlackBerry smartphones, BlackBerry PlayBook tablets, and devices that use iOS and Android. BlackBerry Balance helps enterprises support the Bring Your Own Device (BYOD) trend. BlackBerry Enterprise Server Express is free server software that synchronizes BlackBerry smartphones with Microsoft Exchange or Microsoft Windows Small Business Server. BlackBerry Enterprise Server Express works with Microsoft Exchange 2010, 2007 and 2003 and Microsoft Windows Small Business Server 2008 and 2003 to provide users with wireless access to e-mail, calendar, contacts, notes and tasks, as well as other business applications and enterprise systems behind the firewall.

BlackBerry Mobile Voice System (BlackBerry MVS) allows organizations to converge office desk phones and BlackBerry smartphones. BlackBerry MVS is consists of three components: BlackBerry MVS Client, BlackBerry MVS Services, and BlackBerry MVS Server. It unifies fixed and mobile voice communications. Hosted BlackBerry services bring the BlackBerry Enterprise Server features, functionality, and security capabilities in a package that is managed for end users. Hosted BlackBerry services are conveniently handled and supported by a BlackBerry certified partner from the BlackBerry Alliance Program, giving small and medium -sized enterprise (SME) enterprises the support and convenience they need.

Service

The Company gen! erates se! rvice ! revenues ! from billings to RIM's BlackBerry subscriber account base. It generates service revenues primarily from a monthly infrastructure access fee charged to a carrier or reseller, which the carrier or reseller in turn bills the BlackBerry subscriber.

BlackBerry Technical Support Services

BlackBerry Technical Support Services are a suite of annual technical support and software maintenance programs. The programs are designed to meet the customer�� BlackBerry support needs by offering a contact for BlackBerry wireless solution technical support directly from the Company.

Non-Warranty Repairs

The Company generates revenue from its repair and maintenance program for BlackBerry smartphones that are returned to it by the carrier, the reseller, or the customer. It generates revenue for repair after the expiration of the contractual warranty period.

The Company competes with Apple Inc., Microsoft Inc., Nokia Corporation, Dell, Inc., Fujitsu Limited, General Dynamics Corporation, Hitachi America, Ltd., HTC Corporation, Huawei Technologies Co. Ltd., LG Electronics Mobile Communications Company, Mitsubishi Corporation, Motorola Mobility Holdings, Inc., NEC Corporation, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Corporation, ZTE Corporation, IBM Corporation, Microsoft Corporation, Notify Technology Corporation, Openwave Systems Inc., Seven Networks, Inc., Sybase, Inc. and Good Technologies.

Top Paper Companies To Invest In Right Now: Alcatel Lucent SA (ALU)

Alcatel Lucent, incorporated on June 18, 1898, is engaged in mobile, fixed, Internet Protocol (IP) and Optics technologies, applications and services. The Company is a partner of service providers, enterprises, industries and governments worldwide. Alcatel-Lucent includes Bell Labs centres of research in communications technology. Its operations are in more than 130 countries. The Company operates in three business segments: networks, applications, and services. On December 31, 2010, the Company completed the sale of its Vacuum pump solutions and instruments business to Pfeiffer Vacuum Technology AG. In September 2010, the Company acquired OpenPlug, a mobile software and applications development tools vendor. In June 29, 2010, the Company acquired ProgrammableWeb.

During 2010, the Company launched the Digital Media Store, a multicontent digital storefront that allows service providers to deliver content to end-users. Launched during 2010, Optism is a permission-based mobile marketing solution. During 2010, it launched Alcatel-Lucent�� Mobile Wallet Service (MWS), which allows the mobile operator to leverage its secure network to deliver a mobile payment capability through a mobile handset. During 2010, it also launched Alcatel-Lucent�� Application Exposure Suite to facilitate the development of new services by third-party application developers and content providers.

Networks Segment

The Networks segment supplies a portfolio of products and offerings used by fixed, wireless and converged service providers, as well as enterprises and governments for their business communications. The Company�� IP portfolio consists of four product families that deliver multiple services, including broadband triple play for residential customers; Ethernet and IP Virtual Private Network (VPN) services for Enterprise customers, and wireless second-generation (2G), third-generation (3G) and long term evolution (LTE) broadband services for mobile operators. The main product fami! lies include Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers, Carrier Ethernet service switche, Multi-service wide-area-network (or MS WAN) switches and Content Delivery Network (CDN) appliances.

Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers direct traffic within and between carriers��national and international networks to enable delivery of a range of IP-based services (including Internet access, Internet Protocol TV (IPTV), Voice over IP (VoIP), mobile phone and data, and managed Enterprise VPN services) on a single common network infrastructure with superior performance, with application intelligence, and with scalability (such as the simultaneous support of many diverse types of traffic and customers); Carrier Ethernet service switches. Carrier Ethernet service switches enable carriers to deliver residential, business and wireless services, and these products are mainly used in metropolitan area networks; Multi-service wide-area-network (MS WAN) switches. Multi-service wide-area-network (MS WAN) switches enable fixed line and wireless carriers to transition their existing networks to support newer technologies and services, and Content Delivery Network (CDN) appliances. Content Delivery Network (CDN) appliances distribute and cache (store) Web and video content.

The Company�� Internet Protocol/Multiprotocol Label Switching (IP/MPLS) and Carrier Ethernet products are designed to facilitate the development and availability of applications for the more participatory and interactive Web 2.0 business and consumer services. Its service routers are particularly well suited to deliver complex services to business, residential and mobile end-users. Its IP/MPLS service routers and Carrier Ethernet service switches are often used in conjunction with its DSL and Gigabit Passive Optical Network (GPON) access products to deliver these newer triple-play services, or with its wireless access products to deliver LTE solutions, or w! ith its D! ense Wave Division Multiplexing (DWDM) and optical switching products to deliver converged backbone transformation solutions for optimizing IP transport. Its Optics division designs and markets equipment for the long distance transportation of data over fiber optic connections via land (terrestrial) and under sea (submarine), as well as for short distances in metropolitan and regional areas.

The Company�� transport portfolio also includes the microwave wireless transmission equipment. Its terrestrial optical products offer a portfolio designed to seamlessly support service growth from the metro to the network core. With its products, carriers manage voice, data and video traffic patterns based on different applications or platforms and can introduce a range of managed data services, including multiple service quality capabilities, variable service rates and traffic congestion management. These products allow carriers to leverage their existing network infrastructure to offer these new services. Its submarine cable networks can connect continents (using optical amplification required over long distances), a mainland and an island, several islands together, or many points along a coast. It offers a portfolio of point-to-point microwave radio products meeting both European telecommunications standards (ETSI) and American standards-based (ANSI) requirements.

The Company�� Wireless All Around message developed during 2010 is a combination of wireless and IP products. The version of CDMA technology, known as 1X EV-DO Revision A, enables operators to offer two-way, real-time, high-speed data applications, such as VoIP, mobile video, push-to-talk and push-to-multimedia. The introduction of High Speed Packet Access (HSPA) and HSPA+ (the latest evolutions of W-CDMA technology) on networks and devices has led to increases in data speeds available to broadband devices. The Company develops mobile radio products for the second generation (2G) Global System for Mobile communications (GS! M) standa! rd, including General Packet Radio Service / Enhanced Data Rates for GSM Evolution (GPRS/EDGE) technology upgrades to that standard.

LTE offers service providers a compelling evolution path from all existing networks (GSM, W-CDMA, CDMA or WiMAX) by simplifying the radio access network and converging on a common IP base. RFS designs and sells cable, antenna, tower systems and their related electronic components, providing an end-to-end suite of radio frequency products. RFS serves original equipment manufacturers (OEMs), distributors, system integrators, network operators and installers in the broadcast, wireless communications, microwave and defense sectors. Specific applications for RFS products include cellular sites, in-tunnel and in-building radio coverage, microwave links, television and radio. The Company offers products that extend from legacy switching systems to IP multimedia subsystem (IMS) solutions for fixed, mobile, and converged operators. It has deployed its next-generation network (NGN) products in more than 170 fixed NGN networks, and it has provided the core network for more than 66 full IMS fixed and mobile networks. Its fixed access solutions allow carriers to offer triple-play services over a single access line. Its carrier customers are offering both residential and business customers multiple services, such as a number of broadcast channels, video on demand, high definition television (HDTV), VoIP, high speed Internet, and business access services.

Applications Segment

The Applications segment develops software-based applications and solutions that contribute to the personal communications for users. The Applications group is divided into two businesses: Enterprise Applications and Network Applications. The Enterprise Applications business includes its IP-based communications and collaboration applications for enterprises, including the Genesys contact center business. The Network Applications business develops applications used by service pr! oviders t! o deliver a range of services to their customers, and also includes Motive, which provides software for service providers to remotely manage their customers��at-home networks, networked devices and broadband and mobile data services. During the year ended December 31, 2010, its Applications segment accounted 12% of its total revenue.

The Applications segment is investing resources in next generation collaboration and communications systems offered by its Enterprise Applications division; customer contact, customer engagement and service management areas addressed by its Genesys and Motive businesses; carrier applications, such as communication and messaging, next-generation telephony, digital media and multi-screen delivery of content and personalized advertising, device agnostic location based address book services, and technologies, such as Long Term Evolution (LTE), IP multimedia subsystem (IMS), and Application Enablement.

Services Segment

The Services segment is focused in helping the service provider and customers realize the potential of media, information technology (IT) and telecommunications services and technologies. These services address the lifecycle of its customers��networks and operations, and encompass business consulting, systems design and integration, maintenance and managed services. The service offerings are organized around four areas: network and system integration, managed and outsourcing solutions, multi-vendor maintenance, and product-attached services.

The Company competes with Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, ZTE and Nokia Siemens Networks.

Hot Communications Equipment Stocks To Buy Right Now: Cisco Systems Inc (CSCO.O)

Cisco Systems, Inc., incorporated on December 10, 1984, designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate, and collaborate. Its products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses, and personal residences. The Company has five segments: United States and Canada, European Markets, Emerging Markets, Asia Pacific, and Japan. The Emerging Markets theater consists of Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States. In July 30, 2012, it acquired NDS Group Ltd. In October 2012, it acquired virtual networking company, vCider. In August 2011, the Company acquired Versly. In November 2011, it acquired BNI Video. In March 2012, the Company acquired Lightwire, Inc. In May 2012, the Company acquired ClearAccess. In December 2012, the Company acquired Cloupia. In December 2012, the Company acquired Cariden Technologies Inc. In December 2012, the Company acquired Meraki, Inc.

The Company�� product offerings fall into three categories: its core technologies, routing and switching; advanced technologies, and other products. In addition to its product offerings, the Company provides a range of service offerings, technical support services and advanced services. The advanced services program supports networking devices, applications, solutions, and complete infrastructures.

Routing

The Company offers a range of routers, from core network infrastructure for service providers and enterprises to access route rs for branch offices and for telecommuters and consumers a! t! home. Key products within its routing category are the Cisco ASR 901/903, Cisco 1000, 5000, and 9000 Cisco Aggregation Services Routers (ASR), as well as the Cisco ASR 800, 1900, 2900 and 3900 Cisco Integrated Services Routers (ISR):; Cisco CRS-1, 7600 and Cisco CRS-3 Cisco Carrier Routing Systems (CRS). During the fiscal year ended July 31, 2010 (fiscal 2010), Cisco introduced the Cisco CRS-3 Carrier Routing System (CRS-3) and Cisco 7600 Series Routers.

Service Provider Video

The Company�� end-to-end, digital video distribution systems and digital interactive set-top boxes enable service providers and content originators to deliver entertainment, information, and communication services to consumers and businesses around the world. Key product areas within its Service Provider Video category are: Set-Top Boxes, IP set-top boxes (both High-Definition (HD) and Standard Definition (SD)); Digital cable set-top boxes (both HD and SD); Cable Modem CP E (Data, EMTA, and Gateways); Videoscape Software Products and Headend Equipment (Encoders, Decoders, and Transcoders).

Switching

The Company�� switching products offer many forms of connectivity to end users, workstations, IP phones, access points, and servers, and also function as aggregators on local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs). Its switching systems employ several widely used technologies, including Ethernet, Power over Ethernet, Fibre Channel over Ethernet, Packet over Synchronous Optical Network, and Multiprotocol Label Switching. Many of its switches are designed to support an integrated set of advanced services, allowing organizations to be more efficient by using one switch for multiple networking functions rather than multiple switches to accomplish the same functions.

Cisco offers a family of Ethernet switching solutions from fixed-configuration switches for small and medium-sized businesses to modular switches for ente! rpr! ises! and ! service providers. Its fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. Key products within its switching category are the Cisco Catalyst 2960, 3560, 3750, 4500 and 6500 Series; the Cisco Nexus 2000, 3000, 5000 and 7000 Series switches; and MDS Series: MDS 9000.

Fixed-configuration switches are designed to cover a range of deployments in small and medium-sized businesses. It fixed-configuration switches are designed to provide a foundation for converged data, voice, and video services. They range from small, standalone switches to stackable models that function as a single, scalable switching unit. Modular switches are typically utilized by enterprise and service provider customers. Fixed-configuration and modular switches also include products such as optics modules which are shared across multiple product platforms.

NGN Routing

Routing technology is fundamental to the Internet, and this technology interconnects public and private IP networks for mobile, data, voice, and video applications. The Company's NGN Routing products are designed to enhance the intelligence, security, reliability, scalability, and level of performance in the transmission of information and media-rich applications. It offers a broad range of routers, from core network infrastructure and mobile Internet network for service providers and enterprises to access routers for branch offices and for telecommuters and consumers at home. Key product areas within its NGN Routing category are, Cisco Aggregation Services Routers: Cisco ASR 901/903, Cisco ASR 1000, Cisco ASR 5000 and Cisco ASR 9000. Cisco Integrated Services Routers: Cisco ISR 800, Cisco ISR 1900, Cisco ISR 2900 and Cisco ISR 3900. Cisco Carrier Routing Systems: Cisco CRS-1, Cisco CRS-3 and Cisco 7600 Series Routers.

Security

Cisco security solutions deliver identity, network and content security solutions designed to enable customers to r! educe t! ! he impact! of threats and realize the benefits of a mobile, collaborative, and cloud-enabled business. The products in this category span firewall, intrusion prevention, remote access, virtual private networks (VPNs), unified clients, network admission control, Web gateways, and email gateways. Its AnyConnect Secure Mobility Client solution enables users to access networks with their mobile device of choice, including laptops and smartphone-based mobile devices, while allowing organizations to manage the security risks of networks. Its cloud-based Web security service is designed to provide real-time threat protection and to prevent malware from reaching corporate networks, including roaming or mobile users. It focuses on a proactive, layered approach to counter both existing and emerging security threats. During the fiscal year ended July 28, 2012, it introduced the Cisco ASA 5500-X Series Midrange Security Appliance, Cisco Security Manager 4.3, the IPS 4500 Series, and Prime Securit y Manager.

Wireless

The Cisco Unified Wireless Network aims to harness the network to solve business problems, uniting high-performance wireless access across campus, branch, remote and outdoor environments. Its offerings include wireless access points (including the Cisco Aironet product family), controllers, antennas, and integrated management. The Company�� offerings provide users with simplified management and mobile device troubleshooting features which are designed to reduce operational cost and maximize flexibility and reliability. It is also investing in custom chipsets to deliver functions such as CleanAir proactive spectrum intelligence, ClientLink acceleration for mobile devices and VideoStream multicast optimization technology.

Data Center

The Company�� data center product category has been its major product category for the past two fiscal years. Cisco Unified Computing System (UCS) and Server Access Vi rtualization form the core of the Data Center pr! oduct cat! ego! ry. Key p! roduct areas within its Data Center product category are: Cisco UCS B-Series Blade Servers, Cisco UCS C-Series Rack Servers and Cisco UCS Fabric Interconnects.

Other Products

The Company�� other products category primarily consists of Linksys home networking products, certain emerging technologies, and other networking products. In addition to its product offerings, it provide a range of service offerings, including technical support services and advanced services.

The Company competes with Alcatel-Lucent; ARRIS Group, Inc.; Aruba Networks, Inc.; Avaya Inc.; Belden Inc.; Brocade Communications Systems, Inc.; Check Point Software Technologies Ltd.; Citrix Systems, Inc.; D-Link Corporation; LM Ericsson Telephone Company; Extreme Networks, Inc.; F5 Networks, Inc.; Force10 Networks, Inc.; Fortinet, Inc.; Hewlett-Packard Company; Huawei Technologies Co., Ltd.; International Business Machines Corporation; Juniper Networks, Inc.; LogMeIn, Inc.; Meru Networks, Inc.; Microsoft Corporation; Motorola, Inc.; NETGEAR, Inc.; Polycom, Inc.; Riverbed Technology, Inc.; and Symantec Corporation.

Hot Communications Equipment Stocks To Buy Right Now: Research in Motion Ltd (BBRY)

Research In Motion Limited, incorporated on March 7, 1984, is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services, it provides platforms and solutions for seamless access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. The Company's technology also enables an array of third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data and third-party support programs.Its portfolio of products, services and embedded technologies are used by thousands of organizations and millions of consumers around the world and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools and other software and hardware.

On March 25, 2011, the Company purchased 100% of the shares of a company whose technology is being incorporated into the Company�� developer tools. On April 26, 2011, the Company purchased certain assets of a company whose acquired technologies will be incorporated into the Company�� products. In June 2011, the Company acquired Scoreloop. On March 8, 2012, the Company acquired Paratek Microwave Inc. During the fiscal year ended March 3, 2012 (fiscal 2012), the Company purchased 100% interests of a company, whose technology will be incorporated into its technology; whose technology offers cloud-based services for storing, sharing, accessing and organizing digital content on mobile devices; whose technology is being incorporated into an application on the BlackBerry PlayBook tablet; whose technology offers a customizable and cross-platform social mobile gaming developer tool kit, and whose technology will provide a multi-platform BlackBerry Enterprise Solution for managing and securing mobile devices for enterpris! es and government organizations.

On April 24, 2012, the Company launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in Indonesia. April 18, 2012, it launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in India. On April 17, 2012, it announced availability of the BlackBerry Bold 9790 smartphone in Spain. On April 3, 2012, it launched BlackBerry Mobile Fusion, and launched four BlackBerry smartphones powered by the BlackBerry 7 operating system (OS) in Cambodia, which included BlackBerry Bold 9900, BlackBerry Bold 9790, BlackBerry Curve 9360 and BlackBerry Curve 9380. On April 2, 2012, it announced the availability of BlackBerry App World, the official application store for BlackBerry smartphones in Brunei, and it announced availability of the BlackBerry Bold 9790 and BlackBerry Curve 9380 smartphones for Cell C customers in South Africa. On March 27, 2012, it launched of the BlackBerry solution in Benin Republic. On March 15, 2012, it launched of BlackBerry services in China. On March 7, 2012, it launched the BlackBerry service in Angola.

The Company's primary revenue stream is generated by the BlackBerry wireless solution, consists of smartphones and tablets, service and software. BlackBerry service is provided through a combination of its global BlackBerry Infrastructure and the wireless networks of its carrier partners. On February 21, 2012, it released the BlackBerry PlayBook OS 2.0 software. It generates hardware revenues from sales, primarily to carriers and distributors. During fiscal 2012, the Company launched the wireless fidelity (WiFi)-enabled BlackBerry PlayBook tablet in 44 markets around the world. On July 21, 2011, the BlackBerry PlayBook tablet received Federal Information Processing Standard 140-2 certification.

BlackBerry Smartphones and Tablets

BlackBerry smartphones uses wireless, push-based technology that delivers data to mobile users��business and consumer applications. BlackBerry s! martphone! s integrate messaging including instant messaging, email and SMS; voice calling; Webkit browser; multimedia capabilities; calendar, and other applications. During fiscal 2012, it introduced 10 new smartphones and launched software updates to both its smartphone and tablet platforms. BlackBerry smartphones are available from hundreds of carriers and indirect channels, through a range of distribution partners, and are designed to operate on a variety of carrier networks, including HSPA/HSPA+/UMTS, GSM/GPRS/EDGE, CDMA/Ev-DO, and iDEN.

During fiscal 2012, its BlackBerry smartphone and tablet portfolio included BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series and The BlackBerry PlayBook tablet. Its BlackBerry Bold series includes BlackBerry Bold 9900 and 9930 and BlackBerry Bold 9790. The Company�� BlackBerry Torch series include BlackBerry Torch 9810 and All-Touch BlackBerry Torch 9850 and 9860. The Company's BlackBerry Curve series include BlackBerry Curve 9350/9360/9370 and All-Touch BlackBerry Curve 9380 Smartphone. The BlackBerry PlayBook tablet features the BlackBerry PlayBook OS 2.0. The BlackBerry PlayBook offers a seven-inch high definition display, a dual core one gigahertz processor, dual high definition cameras, multitasking and a Web browsing.

BlackBerry Enterprise Solution

BlackBerry Enterprise Server is software that acts as the centralized link between BlackBerry smartphones, enterprise systems, business applications and wireless networks. BlackBerry Enterprise Server integrates with enterprise messaging systems including Microsoft Exchange, IBM Lotus Domino and Novell GroupWise to synchronize with BlackBerry smartphones to provide mobile users with wireless access to e-mail, calendar, contacts, notes and tasks. It also provides access to business applications and enterprise systems. In addition, it provides security features and offers administrative tools. BlackBerry Enterprise Server is required for certain other enterprise ! solutions! , such as BlackBerry Mobile Voice System (for bringing desk phone functionality to BlackBerry smartphones); BlackBerry Clients for Microsoft Office Communications Server, IBM Lotus Sametime and Novell GroupWise Messenger (for enterprise instant messaging); IBM Lotus Connections (for enterprise social networking); IBM Lotus Quickr (for document sharing and collaboration); and Chalk Pushcast Software (for corporate podcasting).

The Company�� BlackBerry Mobile Fusion provides a Web-based interface that allows enterprises to provision, audit, and protect mobile devices including BlackBerry smartphones, BlackBerry PlayBook tablets, and devices that use iOS and Android. BlackBerry Balance helps enterprises support the Bring Your Own Device (BYOD) trend. BlackBerry Enterprise Server Express is free server software that synchronizes BlackBerry smartphones with Microsoft Exchange or Microsoft Windows Small Business Server. BlackBerry Enterprise Server Express works with Microsoft Exchange 2010, 2007 and 2003 and Microsoft Windows Small Business Server 2008 and 2003 to provide users with wireless access to e-mail, calendar, contacts, notes and tasks, as well as other business applications and enterprise systems behind the firewall.

BlackBerry Mobile Voice System (BlackBerry MVS) allows organizations to converge office desk phones and BlackBerry smartphones. BlackBerry MVS is consists of three components: BlackBerry MVS Client, BlackBerry MVS Services, and BlackBerry MVS Server. It unifies fixed and mobile voice communications. Hosted BlackBerry services bring the BlackBerry Enterprise Server features, functionality, and security capabilities in a package that is managed for end users. Hosted BlackBerry services are conveniently handled and supported by a BlackBerry certified partner from the BlackBerry Alliance Program, giving small and medium -sized enterprise (SME) enterprises the support and convenience they need.

Service

The Company generates service rev! enues fro! m billings to RIM's BlackBerry subscriber account base. It generates service revenues primarily from a monthly infrastructure access fee charged to a carrier or reseller, which the carrier or reseller in turn bills the BlackBerry subscriber.

BlackBerry Technical Support Services

BlackBerry Technical Support Services are a suite of annual technical support and software maintenance programs. The programs are designed to meet the customer�� BlackBerry support needs by offering a contact for BlackBerry wireless solution technical support directly from the Company.

Non-Warranty Repairs

The Company generates revenue from its repair and maintenance program for BlackBerry smartphones that are returned to it by the carrier, the reseller, or the customer. It generates revenue for repair after the expiration of the contractual warranty period.

The Company competes with Apple Inc., Microsoft Inc., Nokia Corporation, Dell, Inc., Fujitsu Limited, General Dynamics Corporation, Hitachi America, Ltd., HTC Corporation, Huawei Technologies Co. Ltd., LG Electronics Mobile Communications Company, Mitsubishi Corporation, Motorola Mobility Holdings, Inc., NEC Corporation, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Corporation, ZTE Corporation, IBM Corporation, Microsoft Corporation, Notify Technology Corporation, Openwave Systems Inc., Seven Networks, Inc., Sybase, Inc. and Good Technologies.

Hot Communications Equipment Stocks To Buy Right Now: Nokia Oyj (NOK)

Nokia Corporation (Nokia) has three operating segments: Devices & Services; NAVTEQ, and Nokia Siemens Networks. Devices & Services is responsible for developing and managing the Company�� portfolio of mobile products, as well as designing and developing services, including applications and content. NAVTEQ is a provider of digital map information and related location-based content and services for mobile navigation devices, automotive navigation systems, Internet-based mapping applications, and government and business solutions. Nokia Siemens Networks provides mobile and fixed network infrastructure, communications and networks service platforms, as well as professional services and business solutions, to operators and service providers. In April 2010, the Company completed the acquisition of Novarra, Inc. and MetaCarta Inc. In September 2010, Nokia acquired Motally, Inc. In December 2010, Renesas Electronics Corporation acquired Nokia�� Wireless Modem business. In August 2012, the Company sold a portfolio consisting of over 500 patents and patent applications worldwide to Vringo Inc.

Mobile Phones

Nokia produces a range of mobile phones based on the Series 30 and Series 40 operating systems. These products have voice capability, basic messaging and calendar features, and, increasingly, color displays, radios, basic cameras and Bluetooth functionality. Series 30-based mobile phones do not provide Internet connectivity, access to Ovi or offer opportunities for application development by third parties. During 2010, its portfolio of Series 30-based mobile phones included the Nokia 1616, equipped with a long-lasting anti-dust keypad, frequency modulation (FM) radio, a flashlight, and a display that makes viewing information on the small screen easier. Its Series 40 operating system powers the mobile phone models and supports more functionalities and applications, such as Internet connectivity and access to its services.

Series 40 is open to third-party developers! to build Java and Adobe Flash Lite applications and content, which they can make available through the Ovi Store. It combines a touchscreen and a traditional phone keypad, is equipped with a five megapixel camera, quad-band for voice calling and third generation (3G), high speed packet access (HSPA) and wireless fidelity (WiFi) connectivity for data in a bushed aluminum finish. Other additions to the Company�� portfolio included the Nokia C3 Touch & Type, a stainless steel device, which also combines the touch screen and traditional phone keypad, and the Nokia 2690, memory card slot, and which gives access to Ovi Mail and features an FM radio and video graphics array (VGA) camera. It is also incorporating some of the software features and related services popular in its smartphones into the Series 40-based mobile phones. These include the new Ovi Web browser, which is based on the browser technology. It also offers Ovi Mail, a free e-mail service designed for users in emerging markets with Internet-enabled devices.

Smartphones

Nokia�� smartphones are based on the Symbian operating system, which supports an array of functionalities and provides opportunities for the development of applications and content by third parties. During 2010, Nokia also offered a product built on the Linux-based Maemo operating system. The Company makes smartphones for a range of consumer groups, offering Internet access, entertainment, location-based and other services, applications and content. With smartphones, its product categories include music players, cameras, pocketable computers, gaming consoles and navigation devices.

During 2010, the Company introduced a family of smartphones based on a new generation of the Symbian operating system. These were the Nokia N8, a smartphone crafted from anodized aluminum and available in a range of colors, and which offers imaging, video and entertainment capabilities; the Nokia C7, a sleek, full-touch smartphone crafted from stainless stee! l and gla! ss that is designed to appeal to social networkers; the Nokia C6-01, a smaller, full-touch smartphone that features Nokia ClearBlack display technology for outdoor visibility; and the Nokia E7, a business smartphone equipped with a full keyboard and 4-inch touchscreen display also featuring Nokia ClearBlack technology.

During 2010, the Company introduced a number of models based on the Symbian operating system, including the Nokia C6-00, a messaging-optimized smartphone with a 3.2-inch high definition (HD) touchscreen display, a slide out four-row QWERTY keyboard and a five megapixel camera; and the Nokia E5, a messaging-optimized QWERTY smartphone that builds on the Nokia E71 and Nokia E72. The Company also manufactures and sells luxury mobile devices under the Vertu brand. Vertu has more than 600 points of sale globally, including more than 90 Vertu boutiques, in almost 70 countries worldwide.

NAVTEQ

NAVTEQ Corporation (NAVTEQ) offers context and geographical services through Ovi Maps to a range of location-based services, such as pedestrian navigation, traffic and public transport information, local services and city guides, integration with social networks and contextual advertising. In January 2010, Nokia introduced a new version of Ovi Maps for its smartphones, which includes navigation to the user, and it is using NAVTEQ�� digital map information and related location-based content in this offering. This new version of Ovi Maps includes car and pedestrian navigation features, such as turn-by-turn voice guidance. During 2010, the Company�� NAVTEQ launched its new advanced mapping collection technology, NAVTEQ True. During 2010, its NAVTEQ launched Natural Guidance, a product to enable guidance in a human manner through the use of descriptive reference cues.

NAVTEQ�� map database enables the Company�� customers to offer navigation, route planning, location-based services and other geographic information-based products and services to con! sumer and! commercial users. NAVTEQ provides its database to mobile device and handset manufacturers, automobile manufacturers and dealers, navigation systems manufacturers, software developers, Internet portals, parcel and overnight delivery services companies and governmental and quasi- governmental entities, among others. The products and services incorporating NAVTEQ map data include Advanced Driver Assistance Systems, Dynamic navigation, Route planning, Location-based services and Geographic information systems. Advanced Driver Assistance Systems are in-vehicle applications that require geographic data, such as curve, slope, speed limits and highly detailed geometry. Dynamic navigation is real-time, detailed turn-by-turn route guidance, which can be provided to end-users through vehicle navigation systems, as well as through Global Positioning System (GPS)-enabled handheld navigation devices, and other mobile devices.

Route planning consists of driving directions, route optimization and map display through services provided by Internet portals and through computer software for personal and commercial use. Location-based services include location-specific information services, providing information about people and places that is tailored to the proximity of the specific user. The applications using NAVTEQ�� map database include points of interest locators, mobile directory assistance services, emergency response systems and vehicle-based telematics services. Geographic information systems render geographic representations of information and assets for management analysis and decision making. In addition, NAVTEQ has a traffic and logistics data collection network in which it processes traffic incident and event information, along with traffic flow data collected through its network of roadside sensors and from GPS data records from Nokia devices and other NAVTEQ customers, in order to provide detailed traffic information to radio and television stations, in-vehicle and mobile navigation systems! , Interne! t sites and mobile device users.

NAVTEQ�� map database is a representation of road transportation networks in Europe, North America, Australia, Asia and other regions around the world. This database offers geographic coverage, including data at various levels of detail for 84 countries on six continents, covering more than 19 million miles of roadway worldwide. The most detailed coverage includes road, route and related travel information, including attributes collected by road segment that are essential for routing and navigation, such as road classifications, details regarding ramps, road barriers, sign information, street names and addresses and traffic rules and regulations. In addition, the database includes over 50 million points of interest, such as airports, hotels, restaurants, retailers, civic offices and cultural sites.

Nokia Siemens Networks

Nokia Siemens Networks has three business units: network systems; global services; and business solutions. Nokia Siemens Networks is jointly owned by Nokia and Siemens. Nokia Siemens Networks is a provider of telecommunications infrastructure hardware, software and professional services globally. Nokia Siemens Networks��customers include network operators, such as Bharti Airtel, Deutsche Telecom, France Telecom, Telefonica O2 and Vodafone, as well as service providers, such as Unitech and XO Communications. Nokia Siemens Networks has a products and services portfolio designed to address the needs of communication service providers. Nokia Siemens Networks provides its products and services to more than 600 communication service providers in over 150 countries and has systems serving in excess of 1.5 billion subscribers.

Network systems offers communication service providers both fixed and mobile network infrastructure, including Nokia Siemens Networks��Flexi Multiradio base stations, a software defined radio supporting global system for mobile (GSM), 3G and LTE radio technologies, packet product! s, optica! l transport systems and broadband access equipment. For wireless networks, Network Systems develops and manufactures GSM/EDGE and WCDMA/HSPA radio access networks for network operators. It also develops products, such as I-HSPA and new technologies, such as LTE to support the uptake of mobile data services. For fixed line networks, Network Systems focuses on transport networks. Network Systems provides the fundamental elements for high-speed transmission through optical and microwave networks, including packet-oriented technologies, such as Carrier Ethernet and traditional protocols, such as time-division multiplexing (TDM).

Global services business unit offers network operators a range of professional services, including network planning and optimization, the management of network operations and the care and maintenance of software and hardware, and a range of network implementation and turnkey solutions. As of December 31, 2010, 180 million global subscribers were managed througt Nokia Siemens Networks��global delivery hubs. Global services consists of three businesses, which include managed services, which offers network planning and optimization and the management of network operations, with the market share position in India, Latin America and the Middle East and Africa; care, which offers software and hardware maintenance, proactive and multi-vendor care and competence development services, dealing with one million global hardware service transactions, and network implementation, which offers project management and turnkey implementations and energy efficient sites, remotely activating a site every two minutes, 365 days per year.

Business solutions offers products to communication service providers for business and operations support systems and customer experience management, such as charging and billing software, service management software and subscriber database management, and products that enable enhancement and delivery of services across multiple networks and d! evices an! d convergent service control and network security, together with services related to consulting, product implementation, support and care, systems integration and managed services. Business solutions offer products for five areas, as well as services relating to consulting, product implementation, support and care, systems integration and managed services includes business support systems; operations support systems; customer experience management; service enablement and delivery, and converged service control.

The Company competes with Google, HTC, LG, Motorola, Samsung, Sony Ericsson, Apple, Tele Atlas, CISCO, NEC and Motorola.