The United States is overflowing with oil. In fact, the Energy Information Administration thinks the country could realistically produce 6 million to 8 million barrels of oil per day over the next three decades. The institution's high estimate exceeds 10 million barrels per day. Canadian production isn't doing too bad, either, although supporting infrastructure is less developed for our northerly neighbors. That bodes well for the companies pumping it out of the ground, but it also represents a big opportunity for the companies transporting and refining crude oil.
Here are four of the best investments supporting oil drillers.
Canadian National Railway (NYSE: CNI )
Canadian National Railway is one company trying to bail-out Canada's ailing pipelines. In 2010 the company didn't move one carload of crude oil. This year it is expected to "choo-choo" its way to 60,000 carloads of oil from the country. This business in particular has boosted sales and income each year since 2010. Investors have to like that growth and where things are headed in the long term. Canadian National is cutting checks totaling $1.9 billion this year to repair its railways, accommodate growth needs, and purchase new freight cars, including new natural-gas powered models. �
Top 5 Canadian Stocks To Buy For 2014: Agrium Inc.(AGU)
Agrium Inc., together with its subsidiaries, produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South Americas. The company?s Retail segment markets crop nutrient products, including nitrogen, phosphate, potash, sulphur, and micronutrients; crop protection products, such as herbicides, fungicides, adjuvants, and insecticides; and seeds. This segment also offers agronomic services, as well as product application, soil and leaf tissue testing and analysis, and crop scouting services. This segment operates 1,192 outlets in the United States, Canada, Australia, Argentina, Chile, and Uruguay. The company?s Wholesale segment produces, markets, and distributes nitrogen, phosphate, potash, sulphate, and other crop nutrient products for agricultural and industrial customers. This segment also owns and operates facilities that upgrade ammonia t o other nitrogen products, such as urea, nitric acid, and ammonium nitrate, as well as provides Rainbow plant food products. Agrium?s Advanced Technologies segment produces and markets controlled-release crop nutrients and micronutrients for the agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.
Advisors' Opinion:- [By Jonas Elmerraji]
Hard commodities aren't getting all of institutional investors' hate in 2013; agricultural commodity stocks are too. Enter Agrium (AGU), the Canadian agricultural retailer. Agrium is the largest ag retailer in the U.S., selling fertilizers, chemicals and seed directly to farmers through more than 1,250 locations. One of the most attractive attributes of Agrium is the fact that the firm isn't merely a seller -- it's also the third-largest producer of potash in North America, a factor that should bode well for Agrium's margins as fertilizer prices rise.
Agrium is well-positioned to grab onto bullish trends in the agricultural commodities. Because its customers, the farmers, have that same exposure, they're less price-sensitive to changes in costs than they would otherwise be; fertilizer and seed prices tend to move in lock-step with the prices that farmers are able to charge for their crops.
From a macro standpoint there's reason to be bullish on the agriculture business: Growing populations and declining farmland continue to be major themes worldwide, and demand for efficiency-improving products (like fertilizers) should continue to strengthen. At the same time, Agrium's push to other regions should help to spawn growth in the next few years.
While a proxy battle at AGU has added some extra headline risks for the firm (big holders want to split the firm's retail and wholesale fertilizer businesses), it's my view that ultimately either outcome will likely add value for investors. The combined firm has more cost savings, while the split up firm will likely see value unlocked from a public offering.
Institutions unloaded more than $25 million shares of AGU in the last quarter.
- [By Lowell]
Agrium Inc. (NYSE:AGU): Down 1.01% to $71.84. Agrium Inc. supplies nitrogen, potash and phosphate for agricultural, industrial, and specialty use. The Company operates throughout the America’s while it markets its products globally.
Top 5 Canadian Stocks To Buy For 2014: Goldman Sachs Group Inc.(The)
The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.
5 Best Stocks To Own For 2014: Assisted Living Concepts Inc. New (ALC)
Assisted Living Concepts, Inc., together with its subsidiaries, operates senior living residences in the United States. It offers general services, such as meals, activities, laundry, and housekeeping; support services, including assistance with medication, monitoring health status, co-ordination of transportation, and co-ordination with physician offices; and personal care services, such as dressing, grooming, and bathing. The company also arranges access to additional services from third-party providers, including physical, occupational, and respiratory therapy; home health; hospice; and pharmacy services. As of December 31, 2011, it operated 211 senior living residences comprising 9,325 units in 20 states. Assisted Living Concepts, Inc. was founded in 1994 and is headquartered in Menomonee Falls, Wisconsin.
Top 5 Canadian Stocks To Buy For 2014: Yamana Gold Inc.(AUY)
Yamana Gold Inc. engages in gold and other precious metals mining, and related activities, including exploration, extraction, processing, and reclamation. It also explores for copper, molybdenum, zinc, and silver metals. The company's portfolio includes 7 operating gold mines namely Chapada; El Pen Advisors' Opinion:
- [By Luke Burgess]
Yamana Gold is a significant gold mining, exploration and development company with projects in Brazil, Argentina, Chile, Mexico and Colombia.
Revenue exceeded $2.2 billion in 2011, as the company reached record production of 1.10 million gold equivalent ounces – a 5.3% increased over the previous year.
This year Yamana expects output to be in the range of 1.2 to 1.3 million gold-equivalent ounces – a 13% increase over 2011.
Going forward, the company says production is expected to increase to 1.5 to 1.7 million gold equivalent ounces by 2013, and 1.75 million ounces gold-equivalent ounces by 2014.
Yamana’s co-product cash costs increased 5% last year to $463 per gold equivalent ounce. The company has not yet announced a guidance of operational costs across all its projects for 2012.
Yamana increased its dividend by 10% on February 22, 2012, making the company’s dividend yield one of highest in the industry. The firm recently declared a quarterly dividend of $0.055 per share, payable April 13, 2012 to shareholders on record at the close of business on March 30, 2012.
- [By Barker]
I believe I have touted Yamana Gold's clear prowess as a deep-value favorite from every possible angle. With arguably the lowest downside risk of any stock in the sector, I join fellow value hounds in waiting patiently for the market to recognize the full value of these shares.
- [By Vatalyst]
A gold producer focused in Canada with land positions in Brazil, Argentina, Chile, Mexico and Colombia, Yamana plans to target gold consolidation opportunities with a primary focus in the Americas. AUY gained 29% during the last year with a 343.5% quarterly earnings growth rate. It has a market capitalization of $9.2 billion and a trailing P/E ratio of 20.4x. AUY is expected to earn $0.75 earn per share in 2012.
Top 5 Canadian Stocks To Buy For 2014: PerkinElmer Inc.(PKI)
PerkinElmer, Inc. provides technology, services, and solutions to the diagnostics, research, environmental, industrial, and laboratory services markets worldwide. The company operates in two segments, Human Health and Environmental Health. The Human Health segment develops diagnostics, tools, and applications to help detect diseases earlier, as well as accelerate the discovery and development of critical new therapies. This segment provides early detection for genetic disorders from pre-conception to early childhood, as well as digital x-ray flat panel detectors and infectious disease testing for the diagnostics market. It also provides a suite of solutions, including instrumentation for automation and detection solutions, in vitro and in vivo imaging and analysis hardware and software, and a portfolio of consumable products, such as drug discovery and research reagents that enable researchers to enhance the drug discovery process. The Environmental Health segment offers t echnologies and applications to facilitate the creation of safer food and consumer products, secure surroundings, and efficient energy resources. This segment provides analytical technologies that address the quality of environment, sustainable energy development, and ensure safer food and consumer products; analytical instrumentation for the industrial market, which includes the semiconductor, chemical, petrochemical, lubricant, construction, office equipment, and quality assurance industries; and laboratory services. The company markets its products and services directly through its own sales forces and distributors for customers, including pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies. PerkinElmer, Inc. was founded in 1931 and is headquartered in Waltham, Massachusetts.
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