Top Safest Stocks For 2014

Pipeline blaze in the Gulf. Photo credit: AP Photo/US Coast Guard, Petty Officer 3rd Class Carlos Vega.

So far, 2013 isn't shaping up to be the energy industry's safest year. A number of disasters have occurred, which have brought unwanted attention to the industry. Here's a look at the industry's five biggest blunders so far this year.

A Herculean disaster averted in the Gulf
Just this past week, a blowout occurred on a Hercules (NASDAQ: HERO  ) -owned rig operating in the shallow waters of the Gulf of Mexico. Natural gas leaking from a well off the coast of Louisiana caught fire and spread to the Hercules rig. Fortunately, all 48 personnel in the rig were safely evacuated. However, the incident underscores the risks of drilling offshore. It could have been a lot worse, as no one was hurt, and this is a natural gas well so the environmental threats are far less than if it were an oil well. While the well is not yet under control, Hercules investors appear to have caught a break, which is why stock was down only about 4% on the week.�

5 Best Asian Stocks To Own For 2015: Raytheon Company(RTN)

Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.

Advisors' Opinion:

• [By Rich Smith]

  The common factor in all these variants is Australia's intention to use Raytheon's� (NYSE: RTN  ) AN/BYG-1 advanced submarine combat control system to fight the boats. As for the rest of the plan, the country has time to work out the details. According to the white paper, the RAN's Collins-class fleet is good for 28 years of service life per sub, suggesting they won't start going obsolete until 2024 at the earliest.

• [By Katie Spence]

  Plus, following the unsuccessful missile test, it's become clear that more needs to be done to make sure that the U.S. has effective ballistics missile interceptors. That's great news for defense contractors. Northrop Grumman (NYSE: NOC  ) , for one, is the prime contractor on the Missile Defense Agency's Joint National Integration Center, a simulating and war-gaming center that provides answers for America's missile defense capabilities. Boeing makes ground-based interceptors. And Raytheon (NYSE: RTN  ) builds the SM-3, a defense weapon used to destroy incoming ballistic missiles. �

Top Safest Stocks For 2014: PostRock Energy Corporation(PSTR)

PostRock Energy Corporation, an integrated independent energy company, engages in the acquisition, exploration, development, production, and transportation of oil and natural gas in the United States. It operates in two segments, Oil and Gas Production, and Natural Gas Pipelines. The Oil and Gas Production segment primarily focuses on the development of coal bed methane in the Cherokee basin and the Marcellus Shale in Appalachian Basin, as well as has oil properties in Central Oklahoma. As of December 31, 2009, it had approximately 51.9 billion cubic feet equivalent (Bcfe) of estimated net proved reserves; development rights to approximately 516,184 net acres; and operated approximately 2,849 gross wells in the Cherokee Basin. It also had approximately 44,507 net acres of oil and natural gas producing properties with estimated proved reserves of 18.9 Bcfe and approximately 498 gross wells in Appalachian Basin; and had 65 gross wells, development rights to approximately 1,4 80 net acres, and estimated net proved reserves, 3.9 Bcfe in Central Oklahoma. The Natural Gas Pipelines segment involves in transporting, gathering, treating, and processing natural gas. It owns and operates a natural gas gathering pipeline networks of approximately 2,173 miles in the Cherokee Basin and 183 miles in the Appalachian Basin; and a 1,120 mile interstate natural gas pipeline, which transports natural gas from northern Oklahoma and western Kansas to the metropolitan Wichita and Kansas City markets. The company is headquartered in Oklahoma City, Oklahoma.

Advisors' Opinion:

• [By Eric Volkman]

  LeBlanc is a veteran energy industry CFO. He has filled that role at East Resources -- now a unit of Royal Dutch Shell (NYSE: RDS-A  ) -- as well as�PostRock Energy (NASDAQ: PSTR  ) , and Range Resources, among others.

Top Safest Stocks For 2014: Pimco High Income Fund(PHK)

PIMCO High Income Fund is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in the public fixed income markets across the globe. The fund invests in U.S. dollar denominated high-yield corporate debt obligations. It employs fundamental analysis along with a top down stock picking approach to make its investments. PIMCO High Income Fund was formed on April 30, 2003 and is domiciled in the United States.

Advisors' Opinion:

• [By Morgan Housel]

  Interest rates have risen over the last month, offering a taste. Pimco High Income Fund (NYSE: PHK  ) is down 10% in the last month. The Vanguard Long Term Corporate Bond Fund (NASDAQ: VCLT  ) lost 4.6%. Mortgage REITS sensitive to the same interest rate risk have been pummeled; Annaly Capital Management (NYSE: NLY  ) shares are off by one-fifth over the last year.

• [By Dan Caplinger]

  Lesson 1: Income is king.
  A look at the four funds trading at the highest premiums to net asset value reveals a common thread: They're all focused on maximizing income. What's interesting, though, is that they use different methods to reach the same ends. Among the three PIMCO funds, PIMCO High Income (NYSE: PHK  ) looks largely to the high-yield bond market for its holdings, while PIMCO Corporate & Income Opportunities (NYSE: PTY  ) has a somewhat lower distribution rate but has a sizable allocation to investment-grade debt. The fund with the highest premium, PIMCO Global StocksPLUS, uses futures contracts to add stock exposure to its portfolio of income-producing bonds. Finally, BlackRock Virginia Municipal Bond rounds out the top four with its tax-free bond portfolio.

• [By Dan Caplinger]

  But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

  Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

  When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top Safest Stocks For 2014: Zoom Technologies Inc (ZOOM)

Zoom Technologies, Inc. (Zoom), incorporated on February 29, 2002, is engaged in design, production, marketing, sales, and support of broadband and dial-up modems, voice over Internet Protocol or (VoIP) products and services, Bluetooth wireless products, and other communication-related products. The Company through its wholly owned holding-company subsidiary, Gold Lion Holding Limited (Gold Lion) is the owner of 100% of Profit Harvest Corporation Ltd. (Profit Harvest) and through Gold Lion's wholly owned subsidiary, Jiangsu Leimone Electronics Co., Ltd. (Jiangsu Leimone) is the owner of 80% of Tianjin Tong Guang Group Digital Communication Co., Ltd. (TCB Digital). The Company through its subsidiaries is engaged in manufacturing, research and development, and sales of electronic and telecommunication products for the latest generation mobile phones, wireless communication circuitry, and related software products. On January 4, 2011, the Company acquired 100% ownership of Celestial Digital Entertainment, Ltd., (CDE). During the year ended December 31, 2011, the Company acquired 55% of Portables.

TCB Digital is engaged in electronic and telecommunication product design, development, and manufacturing for original equipment manufacturers (OEM) customers and for its own products under the brand name of Leimone. The Company offers electronic manufacturing service (EMS) to both domestic and global customers including Samsung, Beijing Tianyu Langtong, CECT, Danahar and Spreadtrum. Its primary products include mobile phones, wireless telecommunication modules, digital cameras, cable television (TV) set-top boxes and global positioning system ( GPS) equipment.

The Company has developed mobile phones and Smartphones based on both of the main network technologies: Global System for Mobile Communications (GSM), and Code Division Multiple Access (CDMA), and beginning in 2010 also 3G CDMA2000 capable products. As of December 31, 2011, the Company markets its mobile phone products through di! stributors in China and also supplies GSM, CDMA and 3G CDMA2000 mobile phones to customers, including one of China's main mobile operators, China Telecom. The Company through its Portables subsidiary operates a wholesale distributor business for T-Mobile products and services in the United States. The Company also has the right to sell branded mobile handsets including those carrying the Zoom brand name and related peripherals in the retail stores managed by Portables under the agreement with T-Mobile.

The Company competes with Bird Ningbo Co., Ltd, Haier Telecom Co. Ltd., Konka Group Co., Ltd, Lenovo Group Limited, TCL Communication Technology Holdings Limited, LG Electronics Ltd., Motorola Inc., Nokia Corporation, Samsung Electronics Co., Ltd., and Sony Ericsson Mobile Communications (China) Co., Ltd.

Advisors' Opinion:

• [By Lauren Pollock]

  Shares of Zoom Technologies Inc.(ZOOM) soared� 37% to $5.90 after the Chinese mobile and telecommunications investor inked an all-stock deal to acquire an online business travel provider.

Top Safest Stocks For 2014: Precision Castparts Corporation(PCP)

Precision Castparts Corp. (PCC) manufactures and sells metal components and products worldwide. Its Investment Cast Products segment offers aerospace structural and airfoil castings; industrial gas turbine (IGT) castings; artificial hips and knees; parts for satellite launch vehicles; landing gear struts and engine inlets for unmanned aerial vehicles; impellers for pumps and compressors; components for armament systems; and alloys for other manufacturers of investment castings. The company?s Forged Products segment provides forged components for jet engines, including fan discs, compressor discs, turbine discs, seals, spacers, shafts, hubs, and cases; airframe structural components, such as landing gear beams, bulkheads, wing structures, engine mounts, struts, tail flaps, and housings; discs, spacers, and valve components for steam turbine and IGT engines; shafts, cases, and compressor and turbine discs for marine gas engines; mechanical and structural tubular forged produ cts for energy markets; and forged components for propulsion systems on nuclear submarines and aircraft carriers, as well as forgings for pumps, valves, and structural applications. PCC?s Fastener Products segment offers aerospace fasteners comprising bolts, nuts, nut plates, latches, expandable diameter fasteners, quick release pins, hydraulic fittings, bushings, inserts, collars, and other precision components. It also provides refiner plates and screen cylinders for the pulp and paper industry; metal-injection-molded and ThixoFormed components; grinder pumps and components for sewer systems; gas monitoring systems for the power generation industry; and thread-rolling and trimming dies, pins and steel, and carbide forging tools for fastener production. PCC sells its fastener products and services through a network of distributors and independent sales representatives, as well as through a direct sales and marketing staff. The company was founded in 1949 and is based in Por tland, Oregon.

Advisors' Opinion:

• [By Ben Levisohn]

  The S&P 500 is up 0.1% at 1,800.48 at 2:29 p.m., getting a boost from big gains in Precision Castparts (PCP), which has risen 3.6%, Jabil Circuit (JBL), which is up 2.5% to $20.32 and Celgene (CELG), which has jumped 2.5% to $154.86. Even Abercrombie & Fitch (ANF) is lending helping hand today–its shares are up 2.5%.

• [By CanadianValue]

  The fiscal year of Precision Castparts (PCP) ends in March. Through the first nine months of the fiscal year, sales advanced 16% and EPS grew 18%. The company is on track to earn about $8.40 for fiscal 2012, up from $7.01 a year ago. Precision has deployed its prodigious cash flow on acquisitions. It created a new platform in aerospace structural components with the $800 million-acquisition of Primus International. In addition, it beefed up its fastener and forgings businesses with two small acquisitions and added to its technical capability in oil & gas pipes with two other acquisitions. The deal making in the oil patch paid off in September when it won a large order to supply specialty pipe to Saudi Aramco with a unique offering that allows customers to pump more oil in less time. Precision has since won an order even larger than the first. We expect more growth from Precision this year as Boeing and Airbus raise production rates. Despite last year�� activity, Precision still has more cash than debt on its balance sheet, giving it plenty of flexibility to make more acquisitions.

Top Safest Stocks For 2014: America's Car-Mart Inc.(CRMT)

America?s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. It primarily sells older model used vehicles and provides financing for its customers. As of February 3, 2012, the company operated 112 automotive dealerships in 9 states. The company was founded in 1981 and is based in Bentonville, Arkansas.

Advisors' Opinion:

• [By Lawrence Meyers]

  However, that growth is 20% in FY13, 15% in FY14 and 9% in the long term. PAG stock trades at $41, or about 13x FY14 estimates. It has the least leverage of all, at about $1 billion, and while it has positive FCF, that figure is weaker than our other options. PAG isn’t the worst of the car stocks, but AN stock is in better condition. I��l pass on PAG.

  America�� Car-Mart (CRMT)

  America�� Car-Mart (CRMT) is the last of our used car stocks.