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Three Oil Stocks to Watch as Drilling Activity Soars
North America oil drilling is on the rise, and many oil companies – and their stocks – are following.
The Oil and Gas Journal reported for the week ended May 18 there were 12% more oil and gas drilling rigs active in the United States from the same period a year ago, totaling 1,986.
Just look at the Texas Eagle Ford shale region, the largest U.S. shale oil deposit, which is booming more than expected. Shale oil production has increased nearly seven-fold from 2010 to 2011, from an average of just less than 12,000 barrels a day to about 83,400 barrels a day.
And that could explode to 500,000 barrels a day by the end of 2012, according to Valero Energy Corp. (NYSE: VLO) CEO Bill Klesse, with output expected to double to 1 million barrels a day "in the next few years."
Eagle Ford isn't the only area exploding with activity. More than 475 rigs are working across the Permian in West Texas and southeastern New Mexico. Those areas are already producing close to a million barrels a day. By decade's end, that daily total could double to nearly the total oil output of Nigeria.
"We're having a revolution," G. Steven Farris, chief executive of Apache Corp. (NYSE: APA), one of the basin's most active producers, told The New York Times. "And we're just scratching the surface."
How To Find the Best Online Broker for You
Internet stock trading has soared in popularity recently – but most investors still are not well versed in how to find the best online broker for their needs.
Finding an online broker may seem easy. Nowadays, all the resources you need are at your fingertips, 24 hours a day, seven days a week. There are many reputable sites that have become household names.
While you may recognize the E*Trade (Nasdaq: ETFC) from the catchy commercials it runs during the Superbowl, you might find you fall short of actually knowing if E*Trade is a good broker for you.
When it comes down to it, selecting an online broker requires some serious thought. Several factors must be weighed, and what is good for your neighbor, brother, or co-worker might not be the best option for you.
These brokers provide a service, but a personal one; it is more akin to choosing a doctor than choosing a restaurant or drycleaner.
Here is a three-step breakdown of what to consider when picking the best online broker for you:
Europe Drives Gold Prices This Week, But Don't Lose Sight of Long-Term
Gold prices managed to eke out a slight gain Friday to move back above the $1,560 a troy ounce mark – but the precious metal has had a less-than-stellar run this week, on track for a 1.9% loss.
In London trading Friday, the spot gold price was up 0.4% at $1,563.71, bouncing from as low as $1,533.41 earlier this week.
The upward move in gold came as the euro rebounded some from two-year lows against the dollar. The euro inched up from early lows against the dollar Friday, although sentiment around the troubled currency remains guarded.
Gold's rise Friday also was attributed to bargain hunting, calmer markets and short covering ahead of the three-day holiday weekend.
This week continues gold's eleven-week downward trend as the state of Greece and the entire Eurozone region has kept world markets on edge and investors jittery.
Worries over Greece exiting the Eurozone prompted heavy selling in the currency this week as the ailing Mediterranean country, operating without a government, faces imminent default.
"Gold's direction seems to be driven more by the level of market risk aversion and the euro currently," BNP Paribas analyst Anne-Laure Tremblay told Reuters. "Market sentiment on gold is fragile at the moment. There have been tentative rebounds, but so far bullish momentum has yet to materialize."
As always, however, there's another side to this story.
Tech Stocks: Can Meg Whitman Deliver the Next Great Turnaround?
Meg Whitman is aiming to be Hewlett-Packard's Lou Gerstner.
Gerstner was the CEO of International Business Machine (NYSE: IBM) from 1993 until his retirement in 2002, and is widely credited for IBM's turnaround.
How did he save IBM from going out of business and reverse its fortunes?
Well, among other things Gerstner made the difficult decision to lay off more than 100,000 employees shortly after his arrival.
And now Meg Whitman, CEO of Hewlett-Packard (NYSE: HPQ), has taken a page from IBM's playbook.
On Wednesday, Hewlett-Packard announced it would lay off 27,000 employees, or roughly 8% of its worldwide workforce, over the next two years.
HP hopes the layoffs will save the company $3 billion to $3.5 billion and it plans to reinvest those savings in research and development, innovation, and the overall quality and design of products.
These High-Yield Natural Gas Stocks are Cheap Buys
Cheap natural gas has made this a year for price pullbacks among natural gas stocks and related investments.
Look at United States Natural Gas Fund (NYSE: UNG), the exchange-traded fund following the price of the fuel. In July 2011 it was selling for over $45 a share.
UNG hit a 52-week low of $14.25 on April 19.
Now it's climbed back up to near $20, but still well off its 52-week high of $50.52.
But don't think this price lull is permanent. There are many reasons the fuel will be more in demand – and eventually, more pricey.
"Natural gas doesn't give cancer…it'sa very useful product, very cheap per Btu — much less than oil, and is less pollutive than oil or coal," said legendary investor Wilbur Ross, who is long-term bullish on natural gas, in a recent interview. "There may be a little more downward blip but I think the worst part has got to be over."
Still, no one wants to "catch a falling knife."
Apple (Nasdaq: AAPL) Patent War with Samsung A Fight No One Wins
Like two mighty monsters in a 1950s sci-fi B-movie, Apple Inc. (Nasdaq: AAPL) and Samsung Electronics Co. (PINK: SSNLF) have locked horns for over a year in an epic patent war neither can win.
Over the past year, the two tech titans have filed dozens of patent infringement lawsuits against each other in 10 countries. Most seek to block the sale of one or more of the other's smartphone and tablet products.
The biggest case, filed in San Jose, CA, is scheduled for a July trial, which U.S. District Judge Lucy Koh is desperate to avoid. (She called the case "cruel and unusual punishment" for the jury.)
Earlier this week Koh ordered the CEOs of both Apple and Samsung to meet in mediation sessions, but nothing came of the meetings.
The mutual stubbornness makes sense when you realize what's at stake.
Eurozone Debt Crisis: What to Expect if Greece Dumps the Euro
The only certain thing if Greece leaves the Eurozone is the uncertainty that will certainly follow.
Unable to form a coalition government during May elections, Greece has been forced to hold a second vote on June 17.
In the balance is the future of the Eurozone itself as a "Grexit" looms large.
So much is riding on the outcome that U.S. President Barack Obama and other leaders of the G-8 have conveyed their optimism that Greece will remain in the Eurozone when they convened for a summit on Saturday aimed at keeping Europe's economic woes from stretching around the globe.
"All of us are absolutely committed to making sure that growth and stability and social consolidation are part of an overall package," President Obama said.
But many other principals and economic experts are not as committed and believe a Greek exit would be the best move in the long run.
The question is what impact its departure will have beyond its own ailing borders if Greece renounces its debt and leaves the Eurozone.
Gold Prices and the "Grexit" Effect
Lately gold prices have been affected by a strengthening dollar resulting from troubles overseas.
On Tuesday, Greek Prime Minister Lucas Papademos told Dow Jones Newswires that considerations were being made for a potential exit by Greece from the euro. He also warned that such an exit would be "catastrophic" for the country and that fallout across the entire Eurozone would be severe.
Concerns over what will happen to Greece and the Eurozone if Greece leaves have caused the euro to drop to $1.255, its lowest level against the dollar since July 2010.
These issues have led to a rising dollar as investors continue to move out of gold and into the dollar.
"Not surprisingly, Greece is the biggest single factor behind the move [out of gold and into dollars]," said Money Morning Chief Investment Strategist Keith Fitz-Gerald on May 11. "Traders are concerned that the nation will summarily go its own way, shatter the EU's bailout and potentially sink the euro itself."
Constant worries loom of a "Grexit" as European leaders met in an informal summit in Brussels today (Wednesday) to talk about the debt crisis and how best to spur growth in the struggling Eurozone.
The meeting comes a day after the Organization for Economic Cooperation and Development (OECD) issued a warning that the 17 countries that use the euro risk falling into a "severe recession."
"The crisis in the Eurozone remains the single biggest downside risk facing the global outlook," said Pier Carlo Padoan, chief economist for the OECD.
So just how low can gold prices go?
Facebook Stock Price Drama Heats up with Lawsuit (Nasdaq: FB)
Investors are not taking lightly the lackluster performance of the Facebook stock price (Nasdaq: FB).
On Tuesday the finger pointing blame game began, followed today (Wednesday) by lawsuits.
Investors who claim they were misled in the purchase of the social network firm's stock filed a lawsuit against underwriters Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE:GS), JPMorgan (NYSE: JPM) and the other underwriters, some 33 in total.
According to a complaint filed Wednesday in Manhattan federal court, the investors, who are members of a proposed class action lawsuit, claim they have lost more than $2.5 billion since Facebook's debut last week.
Morgan Stanley has been accused of mismanaging the offering by either signing off on a price that was too high, or agreeing to sell too many shares.
Facebook went public May 18 amid much hype and fanfare at $38 a share, the high end of the increased price range.
Several investors are frustrated that they got more shares than they were expecting in the IPO. They in turn dumped those shares when Facebook began trading Friday, pressuring the stock's price down and taxing the Nasdaq's overburdened platform. This resulted in a myriad of problems including late execution reports, communication problems, and delayed quotes.
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