Hot Cheap Stocks To Invest In 2014

Two key issues have been in play in the stock market as we head into the long Labor Day weekend. Insider buying has been robust in the past month, yet the market has moved steadily downward. The S&P 500 has slid 5% since Aug. 2.

As a result, many recent insider purchases are now "underwater." That spells opportunity. If these stocks are even cheaper than the levels in which insiders found them to be appealing, then we may witness even deeper insider buying in coming weeks, further validating this "buy" signal. Here's a look at six examples.

1. Aircastle (NYSE: AYR) In early June, this aircraft leasing firm agreed to sell a 15% stake in itself to Japan's Marubeni Corp. The two firms aim to leverage each other's global transport divisions, cross-selling services and equipment to each other's customer base.

Marubeni began buying shares in subsequent weeks, and by early August, already qualified as an insider as its ownership stake moved above 5%. Throughout the past month, Marubeni has kept on buying, even as shares moved past the $17 mark. Yet in recent days, the market turmoil has pushed shares down close to $16. Look for Marubeni to keep buying until it hits the 15% ownership threshold. Meanwhile, analysts have yet to project the benefits of these two firms' partnership, as forward earnings estimates have remained largely static over the past 90 days.

Hot Dividend Stocks For 2015: Cloud Peak Energy Inc(CLD)

Cloud Peak Energy Inc., through its subsidiaries, engages in coal mining operations in the Powder River Basin of the United States. It produces sub-bituminous steam coal with low sulfur content for electric utilities and industrial customers. The company owns and operates Antelope surface coal mine located to the south of Gillette, Wyoming; the Cordero Rojo surface coal mine located to the south of Gillette, Wyoming; and the Spring Creek surface coal mine located in Montana. It also owns a 50% interest in the Decker surface coal mine located in Montana. As of December 31, 2010, it had approximately 970 million tons of proven and probable reserves. The company was founded in 1993 and is headquartered in Gillette, Wyoming.

Advisors' Opinion:

• [By Johanna Bennett]

  As for specific stocks, the Goldman analysts issued five ratings changes:

  Upgrade CONSOL Energy to Buy given strong production growth at its E&P segment, improving cash flow from the coal business and potential for asset sales/restructuring to help realize its SOTP value. Downgrade Arch Coal to Sell due to high leverage, peak valuations and low free cash flow levels. Neutral Ratings on Cloud Peal Energy (CLD), Alpha Natural Resources (ANR) and Walt Energy (WLT): Goldman downgrade Cloud to a Neutral given a lower production outlook and a reduced PRB price forecast. The firm upgraded Alpha and Walt to Neutral from Sell, predicting that met coal prices have bottomed.

  Arch Coal has fallen 5.7% to day to $4.26, followed by Cloud Pearl, down 3.4% to $14.68, and a 3% drop by Walt Energy to $14.10. Alpha Natural dropped 2.8% to $6.10. And CONSOL fell 0.9% to $33.46.

• [By Joshua Bondy]

  Not all coal is the same. Utilities can buy relatively clean, low-sulfur Powder River Basin coal from�Cloud Peak Energy (NYSE: CLD  ) , or stick to more traditional dirty sources. �China and the U.S. are tiring of highly polluting coal, and Cloud Peak Energy is a critical part of the solution.

• [By Ben Levisohn]

  During the past three months, Consol Energy (CNX) has gained 11%, Peabody Energy (BTU) has risen 3.4% and Cloud Peak Energy (CLD) has dropped just 0.8%. (Arch Coal (ACI), it should be noted, has plunged 11% during that time period.) Is this the start of a good thing?

Hot Cheap Stocks To Invest In 2014: Hewlett-Packard Company(HPQ)

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Its Personal Systems Group segment offers commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, and software and services for the commercial and consumer markets. The company?s Services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. Its Imaging and Printing Group segment provides consumer and commercial printer hardware, supplies, media, and scanning devices, such as inkjet and Web solutions, laser jet and enterprise solutions, managed enterprise solutions, graphics solutions, and printer supplies. The company?s Enterprise Servers, Storage, and Networking segment offers industry standard s ervers, business critical systems, storage platforms, and networking products, including switches, routers, wireless LAN, and TippingPoint network security products. Its HP Software segment provides enterprise IT management software, information management solutions, and security intelligence/risk management solutions. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services; and financial asset management services for enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. Hewlett-Packard Company also provides business intelligence solutions that enable businesses to standardize on consistent data management schemes, connect and share data across the enterprise, and apply analytics, as well as licenses its specific technology to third parties. The company was founded in 1939 and is headquartered in Palo Alto, California.

Advisors' Opinion:

• [By Keith Fitz-Gerald]

  And finally, there's good ol' Hewlett-Packard Co. (NYSE: HPQ). Rumors are flying that the company is going to enter the 3D printing market next year. While this may be great for 3D consumers and print fanatics, I have a hard time envisioning the company making the jump to 4D. Still, the 2.5% dividend may be compelling enough to justify playing around the edges here.

• [By Jamal Carnette and Nathan Hamilton]

  Hewlett-Packard (NYSE: HPQ  ) is a company still searching for a turnaround. After a tumultuous past marked by a revolving door of executives, former eBay head Meg Whitman came in to right the ship. After instituting many changes and marking down past acquisitions, Whitman promised a turnaround for HP -- one that hasn't quite materialized yet.�

• [By Dan Caplinger]

  Finally, it's hard to predict which individual stocks will follow the rule. For instance, selling in May last year led you to miss out on nearly 30% gains in Wal-Mart (NYSE: WMT  ) and a 20% gain in Home Depot (NYSE: HD  ) , and while Home Depot has continued to rise sharply since then, Wal-Mart has trailed the Dow's overall rise since November. Yet Hewlett-Packard (NYSE: HPQ  ) and Intel (NASDAQ: INTC  ) have exhibited classic sell-in-May behavior, rebounding in recent months from last summer's swoon.

Hot Cheap Stocks To Invest In 2014: Alliance Holdings GP L.P.(AHGP)

Alliance Holdings GP, L.P., through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. The company operates nine underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. As of December 31, 2010, it had approximately 697.4 million tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, the company leases land; and operates a coal loading terminal, with a capacity of 8.0 million tons with ground storage of approximately 60,000 to 70,000 tons, on the Ohio River at Mt. Vernon, Indiana. Further, it engages in purchasing and selling coal; and providing services, including ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. Alliance GP, LLC, serves as the general partner of the company. Allian ce Holdings GP, L.P. is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Robert Rapier]

  The National Association of Publicly Traded Partnerships (NAPTP) lists five MLPs in the category ��atural Resources – Coal,��although two of the five are Alliance Holdings (NYSE: AHGP) and its operating affiliate, Alliance Resource Partners (NYSE: ARLP). The other three are Natural Resource Partners (NYSE: NRP), Rhino Resource Partners (NYSE: RNO), and Oxford Resource Partners (NYSE: OXF).

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Alliance Holdings GP (Nasdaq: AHGP  ) , whose recent revenue and earnings are plotted below.

Hot Cheap Stocks To Invest In 2014: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.

Advisors' Opinion:

• [By Jeremy Bowman]

  UnitedHealth (NYSE: UNH  ) was the Dow's top dog today, bucking the overall trend and rising 1.5% on an overall strong day for health insurers. Peers Humana and WellPoint were up 1.5% and 1.8%, respectively, as well. There was no specific news on UnitedHealth, but with markets at record highs, investors may be looking to defensive stocks to stretch their gains, and UnitedHealth is one of the cheapest on the Dow based on P/E. With a revenue stream protected from the vicissitudes of the business cycle, and a potential market opportunity with Obamacare set to begin enrollment in two months, it could be a smart bet.

Hot Cheap Stocks To Invest In 2014: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors' Opinion:

• [By Ben Levisohn]

  The market in aggregate might have gone nowhere, but that wasn’t for lack of big moves from individual stocks. Parker-Hannifin (PH) gained 2.4% to $115.06 after it was upgraded to Outperform from Neutral at Baird, while Newmont Mining (NEM) gained 2.2% as gold miners headed higher today.

• [By Monica Gerson]

  Parker-Hannifin (NYSE: PH) is expected to report its Q1 earnings at $1.48 per share on revenue of $3.26 billion.

  Textron (NYSE: TXT) is estimated to report its Q3 earnings at $0.47 per share on revenue of $2.97 billion.

• [By Lauren Pollock]

  Parker Hannifin Corp.'s(PH) fiscal second-quarter earnings rose 40% as the maker of motion and control equipment’s orders continued to grow and gains from a joint-venture agreement with General Electric Co.(GE) (GE) offset a costly write-down. Adjusted earnings were ahead of expectations, yet the company lowered its per-share earnings estimate for the year. Shares dropped 3.8% to $122 premarket.

• [By Mani]

  Parker-Hannifin Corporation (NYSE:PH) has significant opportunities to expand its operating margins, especially within the Aerospace segment where significant longer term business has already been won, and aftermarket opportunities should increase.