Top 5 Penny Companies To Own For 2014

Introduction

In last week�� issue of The Energy Letter, I discussed my January prediction that the average natural gas price in the US would be higher this year than last year. While that prediction is looking pretty safe because of the extremely cold winter, I also predicted that ��rent and West Texas Intermediate (WTI) crude prices will average less in 2014 than in 2013.��Let�� see how that one is faring.

I also predicted lower oil prices for 2013, and ended up being only partially right. In 2013 the average price of Brent crude was 2.8 percent lower than in 2012 with an average of $108.56/barrel (bbl). West Texas Intermediate (WTI) was up 4 percent in 2013 to an average daily price of $97.98/bbl. So in 2013 I was right on the direction of Brent, and wrong on the direction of WTI. (I also predicted that the differential between the two would decline, which it did).

As I write this, the price of WTI has so far averaged $97.75 this year (only three cents lower than last year�� average), while the price of Brent has averaged $108.55 (a penny below last year�� average). At this point this year�� average is nearly identical to last year�� average. But with WTI presently trading at $102.55 and Brent at $109 it won�� take long for average prices to rise above my prediction.

Top 5 Healthcare Equipment Stocks To Invest In Right Now: Tyson Foods Inc.(TSN)

Tyson Foods, Inc., together with its subsidiaries, engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. The company?s Chicken segment involves in breeding and raising chickens, as well as processing live chickens into fresh, frozen, and value-added chicken products. Its Beef segment processes live fed cattle and fabricates dressed beef carcasses into primal and sub-primal meat cuts and case-ready products The company?s Pork segment involves in the processing live market hogs; and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Its Prepared Foods segment manufactures and markets frozen and refrigerated food products comprising pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. The company mark ets and sells its products to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, international export companies, and domestic distributors, as well as to foodservice operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors. Tyson Foods, Inc. also offers its allied products to the manufacturers of pharmaceuticals and technical products, as well as to pork processors. The company was founded in 1935 and is headquartered in Springdale, Arkansas.

Advisors' Opinion:

• [By Arturo Cuevas]

  It looks like you and I will be eating more chicken this 2014. Retail beef prices remain at record highs, and we consumers will likely be driven more toward comparatively cheaper chicken meat in 2014. Given this trend, loading up on shares of Sanderson Farms (NASDAQ: SAFM  ) , Pilgrim's Pride (NASDAQ: PPC  ) , and�Tyson Foods (NYSE: TSN  ) �should be worth considering.

• [By jaggom]

  The world�� second-largest meat processor, Tyson Foods (TSN), released impressive results for the third quarter. The company reported fantastic growth in its top line and its results came in line with expectations. Greater demand for chicken and pork products were the main growth drivers for the company. There are many key points Tyson Foods is counting on, which can take its growth to a new level. With rising demand for meat products and the proposed selling of Latin American chicken operations, Tyson Foods is expected to get better in the future.

• [By abirk]

  Since 2009, Tyson Foods Inc. (TSN) has made a turnaround. It is an integrated producer, processor, and marketer of chicken and poultry-based food products. The company operates in four segments: Chicken, Beef, Pork and Prepared Foods. It supplies chicken products through food service, retail grocery stores, club stores and international distribution channels. Tyson is the largest protein processor in the U.S. (where the core business is chicken), and its common stock offers a good investment opportunity. This Springdale, Ark.-based company also makes corn and flour tortillas under the Mexican Original brand and through its subsidiary Cobb Vantress, a chicken breeding stock supplier.

Top 5 Penny Companies To Own For 2014: Cash America International Inc.(CSH)

Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. This segment also involves in arranging loans for customers with independent third-party lenders through a credit services organization program; providing marketing and loan processing services for a third-party bank issued line of credit on certain stored-value debit cards that the bank issues; and purchasing a participation interest in certain line of credit receivables originated by the bank. The Check Cashing segment provides check cashing and other financial services, such as stored-value cards, money orders, and money transfers. This segment operates its check cashing locations under the Mr.Payroll name. As of December 31, 2009, it operated 676 pawn lending locations, including 667 company-owned units and 9 unconsolidated franchised units; 246 cash advance locations; and 120 unconsolidated franchised and 6 consolidated company-owned check cashing locations. The company was founded in 1984 and is headquartered in Fort Worth, Texas.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of World Acceptance Corporation have plunged 19% to $79.19 at 3:43 p.m.–and dragged down anything remotely connected to payday lending. Cash America International (CSH) has dropped 7.8% to $39.35, pawn-shop operator EZCorp (EZPW) has fallen 3.7% to $12.33, and wire-transfer companies Western Union (WU) and MoneyGram International (MGI) have fallen 2.6% and 5.8%, respectively.

• [By Jon C. Ogg]

  Cash America International Inc. (NYSE: CSH) was raised to Neutral from Underperform and its price target was increased to $40 from $38 by Sterne Agee.

Top 5 Penny Companies To Own For 2014: L-3 Communications Holdings Inc. (LLL)

L-3 Communications Holdings, Inc., through its subsidiary, L-3 Communications Corporation, provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally. Its C3ISR segment offers fleet management sustainment and support, such as procurement, systems integration, sensor development, modifications, and periodic depot maintenance for signals intelligence and communications intelligence systems; strategic and tactical signals intelligence systems; secure data links; secure terminal and communication network equipment and encryption management; and communication systems. The company?s Government Services segment provides communication software support, information technology services, and various engineering development services and integration support; engineering and information systems support services; teaching and training; h uman intelligence support services; command and control systems and software services; and technical and management services. Its Aircraft Modernization and Maintenance segment offers modernization and refurbishments, upgrades and sustainment, maintenance, and logistics support services, as well as turnkey aviation life cycle management services for military and various government and commercial customers. The company?s Electronic Systems segment provides components, products, subsystems, systems, and related services across various business areas, including power and control systems, electro-optic/infrared, microwave, simulation and training, precision engagement, warrior systems, security and detection, propulsion systems, avionics and displays, telemetry and advanced technology, undersea warfare, and marine services. L-3 Communications Holdings, Inc. was founded in 1997 and is based in New York, New York.

Advisors' Opinion:

• [By Jon C. Ogg]

  L-3 Communications Holdings Inc. (NYSE: LLL) is also now back above the price a week ago, up 0.9% at $91.40 versus $90.80 at the time. Its 52-week range is $68.72 to $94.32 and the consensus price target is still $94.64. L-3 may be more for communications on the surface, but it is involved in many aspects that advanced systems need.

• [By Rich Smith]

  Defense contractor L-3 Communications (NYSE: LLL  ) enjoyed a banner year for its stock in 2013, gaining 39% in 12 months of trading. But heading into its Thursday earnings report, things were looking pretty bleak for the company. Earnings for the year were expected to be only $8.30 or thereabouts, less than a 4% increase over 2012 levels, and probably too little growth to support the stock's 13-times earnings P/E ratio. But then the numbers came out, and a miracle happened:

• [By Rich Smith]

  Starting the week off slow, the U.S. Department of Defense announced only a half-dozen new contracts Monday, worth a bit over $345 million in aggregate value. Raytheon scored the big win of the day -- a monster $279 million deal to develop a new electronic warfare product for the Navy. But it wasn't the day's only winner:

• [By Rich Smith]

  The U.S. Department of Defense awarded nine new contracts on Monday worth some $1.121 billion in aggregate. The largest of these awards, however, swallowed more than 85% of the funds on offer. Split among five publicly traded companies, and one privately owned, this monster IT contract envisions paying out $960 million over the course of time to contractors:

  Lockheed Martin (NYSE: LMT  ) Raytheon (NYSE: RTN  ) Harris� (NYSE: HRS  ) L-3 Communications (NYSE: LLL  ) TYBRIN Corp., a subsidiary of Jacobs Engineering Group (NYSE: JEC  ) SRA International

  The multiple award, indefinite- delivery/indefinite-quantity (IDIQ) contract was awarded under the U.S. Air Force's Network-Centric Solutions-2 (NETCENTS-2) Application Services program, which the Air Force describes as being one of its primary vehicles for purchasing "sustainment, migration, integration, training, help desk support, testing and operational support" services. Over the course of the contract, the six named contactors will be the only ones entitled to bid (against each other) for task orders awarded under the umbrella IDIQ contract.

Top 5 Penny Companies To Own For 2014: MGP Ingredients Inc.(MGPI)

MGP Ingredients, Inc. produces ingredients and distillery products in the United States. It processes wheat flour and corn into various products through an integrated production process. The company operates in three business segments: Ingredient Solutions, Distillery Products, and Other. The Ingredient Solutions segment products consist of specialty proteins, specialty starches, vital wheat gluten, commodity wheat starch, and mill by-products. The Distillery Products segment offers food grade alcohol; fuel grade alcohol, commonly known as ethanol; and distiller?s feed and carbon dioxide, which are co-products of the company?s distillery operations. The Other segment products comprise resins, and plant-based polymers and composites. MGP Ingredients, Inc. sells its products directly or through distributors to the manufacturers and processors of finished goods. The company was founded in 1941 and is headquartered in Atchison, Kansas.

Advisors' Opinion:

• [By John Udovich]

  Small cap ingredients stock Balchem Corporation (NASDAQ: BCPC) jumped 22.76% yesterday on news about an acquisition, meaning its worth taking a closer look at the stock along with potential peers like small cap MGP Ingredients Inc (NASDAQ: MGPI) and the PowerShares Dynamic Food & Beverage ETF (NYSEARCA: PBJ).