Most investors probably have some familiarity with a price-to-earnings ratio as a form of pegging a value on a company. Unfortunately, as you will soon see, it’s really not the best tool to use to gauge relative values when investing in an oil and gas producer. To demonstrate, let’s look at a chart that groups a number of well-known energy companies by P/E ratio:

Source: Occidental Petroleum Investor Presentation (Opens in a PDF).

Smaller oil-focused E&P company Pioneer Natural Resources (NYSE:PXD) trades at what would appear to be a rather expensive 30.6 times earnings. That’s about twice what Bakken-focused Continental Resources, Inc. (NYSE:CLR) trades at. Both appear to be valued much more expensively than larger independent E&P companies including Marathon Oil Corporation (NYSE:MRO) or Occidental Petroleum Corporation (NYSE:OXY), which could hurt your investing returns.

Drilling down, looking for value
The other thing to keep in mind when looking at a P/E ratio is that it tells only part of the story. Earnings could have been affected by one-time charges resulting from an asset impairment or gains on derivatives used in hedging out oil and gas price volatility. For example, last year, low natural gas prices cost Pioneer Natural Resources (NYSE:PXD) a total of $532.6 million after the company took several writedowns on its Barnett shale dry-gas properties. Meanwhile, Continental Resources, Inc. (NYSE:CLR) took more than $100 million in property impairment charges last year, however, that was more than offset by nearly $200 million in gains on derivatives last year. The volatility of commodity prices can really affect the earnings number, making the P/E ratio a less than optimal metric to use in valuing a potential investment.

A much better metric for an apples-to-apples comparison is the enterprise value-to-EBITDA ratio. This takes into account all of a company’s assets and debt and divides it by its earnings before interest, taxes, depreciation, and amortization. When looking at these same companies and applying that valuation metric, you get a very different investment story:

Source: Occidental Petroleum Investor Presentation.

In this case we can see that Pioneer Natural Resources (NYSE:PXD) is still actually pretty expensive on a relative basis, while Continental Resources, Inc. (NYSE:CLR) also possesses a high-end valuation. On the other hand, Whiting Petroleum Corp (NYSE:WLL) and Marathon Oil Corporation (NYSE:MRO) and very inexpensive on a relative basis. While this metric doesn’t tell you why these companies are cheap, it does provide you with a great starting point when investing with an eye for value.

Out with the old…
The initial incident arose when two Albuquerque workers claimed they were suspended after complaining about the policy. Whole Foods Market, Inc. (NASDAQ:WFM) management, for their part, stated that the paid, one-day suspensions didn’t actually stem from a violation of the policy, but instead were the result of “rude” workplace behavior exhibited by the employees.

Even so, co-CEO Walter Robb noted in a company blog posting that the “unfortunate incident” has provided Whole Foods Market, Inc. (NASDAQ:WFM) the opportunity to revise the language of the policy “which, while in place for years, does not reflect and is not in alignment with the spirit of this company.”

Also in the post, Robb wrote, “On behalf of the Whole Foods Market, Inc. (NASDAQ:WFM) Leadership Network … we sincerely apologize that a section of our handbook regarding team member interactions in the workplace was not clearly written, and for any misunderstandings or offense it has created. Its intention was to foster inclusion, not exclusion.”

Sure enough, part of the old policy dictated that English-speaking workers must speak English to customers and other employees while on the clock, unless “all present prefer to speak a language other than English.”

…and in with the new
By contrast, the respective sections of the new policy state:

If you speak English and you need to communicate with an English-speaking customer, please speak with them in English, unless requested otherwise by the customer.

When speaking with customers or fellow Team Members, please make sure you are sensitive to others who may want to join in your conversation or ask you a question. If needed, switch to a common language to be inclusive and respectful.

What’s more, similar to the old policy, employees who don’t understand English are asked to inform a “Team Leader so that communications may be translated” for them.

FedEx Corporation (NYSE:FDX) has gotten used to the challenges of dealing with sluggish economic conditions. With a variety of cost-cutting initiatives, the transportation giant has done a good job of getting the most from the revenue it generates. Let’s take an early look at what’s been happening with FedEx Corporation (NYSE:FDX) over the past quarter and what we’re likely to see in its quarterly report.

Stats on FedEx

Source: Yahoo! Finance.

What will FedEx’s earnings say about the economy?
Analysts have gotten markedly less enthusiastic in recent months about FedEx Corporation (NYSE:FDX)’s earnings prospects, cutting their May-quarter estimates by a dime per share and reducing their full-year fiscal 2014 estimates by more than $0.45 per share. The stock has responded negatively, falling nearly 10% since mid-March.

FedEx has been going through an extended phase of restructuring lately, with the recognition that the changing global economy requires some consolidation of its business. Between slimming down its air-transport network and offering voluntary employee buyouts to reduce unnecessary staffing, FedEx Corporation (NYSE:FDX) has started to make itself more efficient going forward. Moreover, the greater emphasis on ground transportation puts it in more direct competition with United Parcel Service, Inc. (NYSE:UPS), allowing FedEx to prove its mettle against its chief rival.

Cost-cutting measures remain exceedingly important for FedEx. Earlier this month, the company said it would retire some of its older aircraft and replace them with more fuel-efficient planes. The Boeing Company (NYSE:BA) is keeping its 767 production line in operation solely to serve FedEx’s needs, with its order for 50 aircraft to replace FedEx Corporation (NYSE:FDX)’s existing The Boeing Company (NYSE:BA) 727 planes, as well as MD-10 and Airbus A300 and A310 aircraft. Yet FedEx expects to pass on some of its costs to customers. As of July 1, FedEx will implement a 4.5% rate increase throughout most of North America for its freight division, noting that its freight fuel surcharge remains much lower than that of most of its peers in the business of shipping quantities of goods that don’t make up full truckloads.

The Kroger Co. (NYSE:KR)’s grocery stores don’t have the cutting-edge panache of some of the natural-foods-focused stores that the company’s competitors operate, but that hasn’t stopped Kroger from making the most of the grocery business. Still, with relatively little pricing power to boost revenue above costs, groceries always run with very little margin for error. Let’s take an early look at what’s been happening with The Kroger Co. (NYSE:KR) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Kroger

Source: Yahoo! Finance.

Can Kroger’s earnings keep impressing investors?
Analysts have mostly held steady on their views of The Kroger Co. (NYSE:KR)’s earnings recently, keeping their April-quarter estimates unchanged and boosting their consensus for the current fiscal year by a penny per share. The stock, though, has continued advancing sharply, rising more than 12% since mid-March.

Kroger has done a great job keeping its earnings up even in trying times for the grocery industry. In its previous quarterly report, Kroger posted 13% revenue growth in reversing a year-ago loss, crossing expectations and giving better-than-expected guidance for the full fiscal year. Annual sales growth of 2.5% to 3.5% might not sound like much, but The Kroger Co. (NYSE:KR) has learned to do as much as it can with the revenue it earns.

Much of Kroger’s success has come from its early recognition that it needed to jump on the potential of store brands to boost margins. ConAgra (NYSE:CAG)‘s Ralcorp unit and its peers have seen substantial growth in recent years in producing the private-label items that companies like Kroger sell under their own brand names, and Kroger has used private-label sales to keep its stock moving upward even as rivals Safeway Inc. (NYSE:SWY) and SUPERVALU INC. (NYSE:SVU) have suffered from their focus on the struggling mid-tier grocery market. Safeway only managed 1.5% same-store sales gains in its most recent quarter, compared to double that for Kroger, and Safeway Inc. (NYSE:SWY)’s operating margins are barely half Kroger’s levels.

Yet what many people don’t know about Kroger is that it has a much more diversified set of store offerings. It operates convenience stores as well as a set of high-margin jewelry business chains, giving it some additional chances to benefit from better economic conditions. Still, what Kroger doesn’t offer is the emphasis on natural foods that have helped its specialty rivals.

In The Kroger Co. (NYSE:KR)’s report, watch for discussion of how the company is responding to the SUPERVALU INC. (NYSE:SVU) reorganization. As competitive conditions change, Kroger has to adapt in order to avoid getting stuck in the traps that have held its competitors down over the years.

The article Can Kroger’s Surprising Rally Continue? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of SUPERVALU.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Image source: Amazon.com.

So how does it work?

In short, anyone with a Facebook account can “start” a gift through Amazon.com, Inc. (NASDAQ:AMZN) for as little as $1 along with a custom birthday message. Then, other Facebook friends can add their own messages while incrementally increasing the gift card by $1, $5, $10, or $25, allowing the gift to grow until the recipient’s birthday.

Then, on the birthday, the “many individual birthday messages will appear on his or her Timeline along with links to claim the gift — surprising the recipient with much more than just the traditional birthday messages and letting the recipient get exactly what he or she wants from millions of items on Amazon.com, Inc. (NASDAQ:AMZN).”

What’s more, for those early adopters of the novel gift card concept, Amazon’s offering a $3 credit if you purchase at least three gifts for your friends over the next month.

Why this is great for Amazon stock
As it stands, assuming the interface is as easy to use as the rest of Amazon.com, there’s plenty of reason to believe consumers should have no trouble embracing the new service.

After all, a recent consumer survey from the Retail Gift Card Association showed a full 71.3% of consumers said they were “very satisfied” when they received a retail gift card as a gift, and 91.4% of all consumers reported they plan to give between one and three gift cards as gifts over the next three months. What’s more, the survey also showed 73.2% “prefer to give a retail gift card when giving a gift from a group of people,” and 84.6% like receiving gift cards simply because it allows them to purchase items they want.

Amazon.com, Inc. (NASDAQ:AMZN)’s move isn’t entirely selfless. Remember, like any other retailer, Amazon gets to collect the cash up front for its gift cards, but doesn’t have to deliver anything until the cardholder actually decides to use it.

Of course, this is fantastic for Amazon stock from a cash flow and inventory management perspective, especially considering the same RGCA survey also said one in eight consumers waits at least six months to redeem their card. In turn, this frees up more funds for Amazon.com, Inc. (NASDAQ:AMZN) to pay for its ever-growing, increasingly efficient infrastructure, which helps provide the lowest possible prices and fastest delivery options for consumers.

With the outpouring of support, and given the scope of the devastation, it might surprise you to learn that one company initially told a fire victim that he had to pay for the satellite-TV equipment that was burned during the fire. More importantly, this isn’t the first time this company has taken such a stance. I’m talking about DIRECTV (NASDAQ:DTV). Here’s what you need to know.

You’ve got to be kidding me
Jeremy Beach’s home is gone, burned to the ground by the Black Forest Fire. Luckily, he escaped with his wife — who is 37 weeks pregnant with twins, his 5-year-old son, and two dogs. When he got the news his home had burned, Jeremy told the The Gazette that he started making calls to cancel his services, including cable, utilities, and trash. However, when he contacted DIRECTV, they told him he owes the company $400 for the burned satellite dish and receivers.

This news is shocking, but it’s not unpredictable when it comes to DIRECTV (NASDAQ:DTV). During the Waldo Canyon fire, which destroyed 347 homes, The Gazette reported that DIRECTV also charged fire victims for burned equipment. A spokeswoman for DIRECTV told the Gazette that they decided to charge customers because most people’s insurance would cover the cost. While that may sound like a valid argument, to victims of the fire, and the surrounding community, the explanation left consumers angry.

Social-media backlash
It’s pretty obvious that businesses shouldn’t alienate the customers they rely on for profits. As such, DIRECTV (NASDAQ:DTV)’s reported position could cause investors concern, as comments on The Gazette’s article, and across social media, show that consumers in Colorado are irate, stating that they intend to cancel their subscriptions ASAP.

The negative backlash created such a stir that DIRECTV (NASDAQ:DTV) issued an apology to the fire victim and said it’d do everything it could to help. It also stated: “DIRECTV has a clear policy that fully supports its customers during natural disasters that includes replacement of damaged equipment at no charge, long-term suspensions of accounts for customers who must leave their home, and waiving cancellation fees for those who need to disconnect service.”

Colorado may hate it, but is DIRECTV still a good investment?
DIRECTV (NASDAQ:DTV)’s apology is a step in the right direction, but comments from consumers show that there’s still widespread anger against DIRECTV dating back to the Waldo Canyon fire. More pointedly, Colorado residents aren’t the only ones to show dissatisfaction with DIRECTV.

The world’s leading search provider announced yesterday that the number of stores stocking Chromebook notebooks will triple this week. Between Wal-Mart Stores, Inc. (NYSE:WMT) beginning to sell the $199 Acer Chromebook yesterday and Staples, Inc. (NASDAQ:SPLS) carrying Chromebooks from three different manufacturers later this week, it’s going to be hard to avoid the line’s retail presence.

Chromebook’s presence in 2,800 Wal-Mart Stores, Inc. (NYSE:WMT) superstores and 1,500 Staples office supply stores will triple the notebook’s availability to 6,600 physical stores.

Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) aren’t necessarily worried about laptops running Google Inc (NASDAQ:GOOG)’s web-heavy Chrome operating system.

Microsoft feels as if user familiarity and access to Office and countless other Windows games and software applications make its laptops more than worth the premium. Apple is even higher along on the prestige ladder, but that didn’t stop Google Inc (NASDAQ:GOOG) from putting out the $1,299 Chromebook Pixel netbook earlier this year that clearly targeted Apple Inc. (NASDAQ:AAPL)’s MacBook Pro and MacBook Air.

Microsoft Corporation (NASDAQ:MSFT) and Apple taking a nonchalant attitude is paying off for now. Chromebooks have yet to make any serious dent in the market. The bad news for Microsoft and Apple is that the pie itself is shrinking.

Back in April, industry tracker IDC reported that the number of PCs shipped during this year’s first quarter plunged 13.9% to 76.3 million from the prior year.

When your back’s to the Wal-Mart
Google Inc (NASDAQ:GOOG) clearly thinks it has a shot at making a difference at the retail level.

The Staples, Inc. (NASDAQ:SPLS) deal may generate some buzz as the country’s leader in office supplies. Staples is stocking Chromebooks months ahead of its two nearest rivals, and once all three chains are carrying the laptops, it’s going to make things interesting for corporate America. The uniform presence will validate the platform, especially for businesses that are flocking to more and more cloud-based solutions.

However, the big deal here really is Wal-Mart Stores, Inc. (NYSE:WMT). The world’s largest retailer doesn’t stock new $199 laptops. The cheapest new laptop, netbook, or ultrabook on Walmart.com starts at $249. Chromebook is going to stand out when someone comes in looking for the cheapest way to get online.

Shoppers don’t go to Wal-Mart Stores, Inc. (NYSE:WMT) to talk up the greeter or embrace the minimalist architecture of exposed beams. They’re there to save money, and that’s going to make Acer’s $199 Chromebook the belle of the bargain-priced ball.

If Chromebook can’t make it there, it won’t be making it anywhere.

The article Wal-Mart May Be Google’s Secret Weapon originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple and Google Inc (NASDAQ:GOOG). It also owns shares of Microsoft and Staples.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

1. Mr. Market realizes Baidu is a revenue-generating machine.
Yes, in its latest quarterly report, Baidu missed analysts’ revenue estimates. But it also grew revenues by 40% year over year. That’s HUGE. For comparison, Google Inc (NASDAQ:GOOG) has only grown its revenues by about 30%.

In fact, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has been crushing Google for the past five years.

Source: YCharts.

2. Baidu is the juggernaut it’s always been.
Over the past year, you’ve seen that market share fall as low as the 55%, according to Statcounter. This is all because of Qihoo 360 Technology Co Ltd (NYSE:QIHU)‘s entrance into the market.

Around this time last year, Qihoo came in and decided it didn’t just want a piece of the anti-virus or browser market, but it also wanted a piece of the search market. And, boy, did it deliver. It went for 0% to 8% of the search market in under a year. As the stock continues to hit new 52-week highs, it seems that Mr. Market believes Qihoo 360 Technology Co Ltd (NYSE:QIHU) will continue to steal away market share.

Luckily for Baidu.com, Inc. (ADR) (NASDAQ:BIDU), Google’s the one that got hurt the most. In China, Google Inc (NASDAQ:GOOG)’s market share has fallen from 16% to the single digits.

In any case, Baidu seems like it’s doing more than fine. Bloomberg Businessweek reports that Baidu has reclaimed its monopoly-like dominance: It commands about 80% of search market share in China — thus showing Wall Street that it’s still the juggernaut it has always been.

3. The PPS Deal will help make Baidu a “Netflix of China”
In May, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) announced that it would pay $370 million to acquire Shanghai-based video provider PPS. In essence, Baidu is looking to merge PPS with its own video arm iQiyi, making Baidu the biggest place to watch videos online. By doing so, Baidu is stealing the title from Youku Tudou Inc (ADR) (NYSE:YOKU).

More importantly, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) may soon become a “Netflix, Inc. (NASDAQ:NFLX) of China,” providing on-demand access to a variety of video content. Already, Baidu iQiyi is called the “Hulu of China” because of its focus on longer-form, high-quality domestic content. Now that it has PPS, Baidu’s video site will soon provide foreign content such as popular American TV shows. All this spells trouble for its competitors like Youku Tudou Inc (ADR) (NYSE:YOKU).

That’s why The Boeing Company (NYSE:BA) recently decided to double down on its plans for the Dreamliner by offering a new stretched model, the 787-10. The new version of the Dreamliner was officially launched this week at the Paris Air Show with more than 100 initial orders from customers like aircraft leasing upstart Air Lease Corp (NYSE:AL), top global carrier United Continental Holdings Inc (NYSE:UAL), and Singapore Airlines.

Stretching the 787 looks like it was a good move for The Boeing Company (NYSE:BA). Top competitor Airbus has been saying that it wants to win more than 50% of the widebody market, where it has traditionally lagged Boeing. Airbus is relying on its upcoming A350 aircraft to achieve that goal. The new 787-10 will allow Boeing to compete more effectively against the A350, as it now can offer a wider variety of aircraft sizes for customers.

Cannibalizing to compete
The 787-10 will have a slightly shorter range than the first two Dreamliner models at 7,000 nautical miles, but that will still allow it to cover more than 90% of the world’s twin-engine widebody routes, according to The Boeing Company (NYSE:BA). On the other hand, it will seat 300-330 passengers, roughly 40 more than the 787-9, the larger of the two models initially announced.

That size puts the new 787-10 into direct competition with the upcoming Airbus A350-900, which recently had its first test flight and is expected to enter service in late 2014. Air Lease Corp (NYSE:AL) CEO Steven Udvar-Hazy — a legend in the aerospace industry — says that he chose the 787-10 over the A350 because it will be slightly more fuel efficient, although it will offer less range. Udvar-Hazy’s job is to understand what airlines (i.e., his customers) want in an airplane, and his preference for the Dreamliner is great news for The Boeing Company (NYSE:BA).

The 787-9 will also compete with two current generation planes; the Airbus A330-300 Boeing’s own 777-200. The new aircraft could therefore cannibalize some of Boeing’s own 777 sales, as the 787 will be a much more fuel-efficient aircraft.

Nevertheless, this cannibalization was absolutely necessary for The Boeing Company (NYSE:BA) to remain competitive in the market for larger widebodies. While the 777 has been a big seller since it was introduced in 1995, new engine and airframe technology will make it increasingly obsolete by the end of the decade. Airbus has been touting the significant fuel-efficiency advantage that the A350 will have, compared to the 777, and Boeing risked losing some orders altogether if it did not respond.

Grom’s bullish call on J.C. Penney Company, Inc. (NYSE:JCP) is refreshingly courageous; most Wall Street analysts tend to be overly focused on short-term results, rather than long-term trends. By contrast, Grom is clearly focused on long-term opportunities at J.C. Penney, not short-term sales or profit results.

Unfortunately, even from a long-term perspective, there’s not much to like about J.C. Penney. The company was already under pressure before its missteps under Ron Johnson. The mid-price department store segment is not a great place to do business these days, as Sears Holdings Corporation (NASDAQ:SHLD) can attest. Moreover, J.C. Penney has taken on billions of dollars in new debt to fund its capital expenditures and operating losses, adding over $100 million of annual interest payments.

Regaining the $5 billion in sales that it has lost over the last six quarters could take more time than the company can spare, raising the likelihood of an eventual bankruptcy restructuring.  As a result, investors should be very wary of this stock.

Transformation gone awry
Ron Johnson was hired two years ago in order to transform J.C. Penney Company, Inc. (NYSE:JCP) because the department store concept was going stale and financial results were starting to go sideways. In the last year of CEO Mike Ullman’s previous tenure — Ullman was recently brought back as CEO, just a year and a half after his ouster — the company posted a dismal 0.2% comparable-store sales gain.

The external environment has not improved since then, while J.C. Penney has gone into a tailspin; the company lost more than $1.5 billion before taxes last year. Moreover, J.C. Penney’s performance has continued to slide year to date. While analysts expect sales to improve and losses to narrow later this year, the company’s full-year loss will probably be similar to its 2012 results.

To regain its level of sales from 2010 — the last time the company earned more than $2 per share — J.C. Penney Company, Inc. (NYSE:JCP) will need to increase its revenue by 43% beyond its expected 2013 total. In order to accomplish that task by 2017, J.C. Penney would need to achieve a compound annual sales growth rate of more than 9%! Even the most successful department stores today are not growing that quickly.

To some observers, it appears that J.C. Penney Company, Inc. (NYSE:JCP) should be able to get back to $17 billion or $18 billion in annual sales, because the company “only” has to win back the customers it lost last year. In reality, J.C. Penney’s task is not so simple. Sears Holdings Corporation (NASDAQ:SHLD) has seen its domestic comparable-store sales sink every year for the past decade. Total revenue peaked at $53 billion in 2006, but has plunged to less than $40 billion last year.

Weak results in one year have not made it easier for Sears to “recapture” revenue in later years. While Sears lost 25% of its revenue over six years and J.C. Penney lost that much in just one year, the two situations are quite similar. Time has passed these retailers by, and it’s unrealistic to hope for more than modest sales growth going forward.

A short lease on life
J.C. Penney Company, Inc. (NYSE:JCP) recently closed on a $2.25 billion term loan with Goldman Sachs Group, Inc. (NYSE:GS). This gives the company much-needed liquidity, but longer term, this deal looks more likely to be an anchor than a solution for J.C. Penney. The loan will reportedly bear interest at LIBOR plus 5 percentage points, with a LIBOR floor of 5%. Thus, the interest rate will be a minimum of 6%, meaning that J.C. Penney will be on the hook for annual interest payments of $135 million.

Bank of American Corp Director Sells 580K Shares and 4 Insider Sales to Note (Wall St. Cheat Sheet)
Gifford Charles K who is Director at Bank of America Corp (NYSE:BAC), sold 580,734 shares at $13.07 per share for a total value of $7,590,193. The shares recently traded at $13.21, up $0.14, or 1.07% since the insider sale. Everist Thomas S who is Director at MDU Resources Group Inc (NYSE:MDU), sold 30,000 shares at $25.06 per share for a total value of $751,800. The shares recently traded at $25.19, up $0.13, or 0.52% since the insider sale.

Bank of America robbed in Cutlerville (WOOD-TV)
The Kent County Sheriff’s Department is looking for the person who robbed the Bank of America Corp (NYSE:BAC) in Cutlerville on Tuesday afternoon. It happened around 4 p.m. at the bank in the intersection of 68th Street and Division Avenue S. The suspect came into the bank and implied a weapon before leaving with an unknown amount of money, according to the Kent County Sheriff’s Department. Deputies would not confirm whether the suspect was male or female. There were no injuries reported.

Ex-Bank of America mortgage workers were ‘told to lie’ (CBC.ca)
Former Bank of America Corp (NYSE:BAC) employees say in court documents that the bank routinely lies to customers about their mortgages, and denies their requests for modifications without even looking at the paperwork. In sworn affidavits, four former employees, for example, describe policies in place at the bank that they say are designed to subvert the Home Affordable Modification Program (HAMP), 2009 government-sponsored initiative that was designed to keep distressed homeowners above water during the depths of the housing crisis. The affidavits are part of multiple court cases against the bank brought by homeowners who say they were unfairly foreclosed upon. Bank of America, based in North Carolina, is disputing the allegations.

Bank of America looks to sell local bank branches (Standard Speaker)
A new bank may be coming to a corner near you as Bank of America Corp (NYSE:BAC) reportedly looks to unload eight branches in Northeastern Pennsylvania. As the nation’s second largest bank shifts its attention and money elsewhere, it plans to divest of its branches in Northeast Pennsylvania and New York – 41 offices in all – according to news reports attributed to anonymous Bank of America Corp (NYSE:BAC) employees. A hot sheet of the branches compiled by Griffin Financial Group Inc. showed eight branches for sale in the region from the downtown Scranton office to those in Freeland and Lehighton.

Bank of America’s Simple and Ingenious Business Model (DailyFinance)
Bank of America Corp (NYSE:BAC) headquarters in Charlotte, N.C. Bold statement alert! Bank of America may have the best business model in the world right now. Unfortunately for Bank of America shareholders, just having the best business model in theory doesn’t guarantee operational or financial success. Bank of America Corp (NYSE:BAC)’s master plan isn’t relatively new, but leadership blunders and lack of communication across the company have prevented the bank from fulfilling its true potential. So, what is this mind-blowing, revolutionary strategy? In the words of CEO Brian Moynihan at a recent Goldman Sachs Group, Inc. (NYSE:GS) conference, “We’re pursuing the customer relationship model.”

Sirius Tops 10,000 Used-Car Partners (DailyFinance)
Sirius XM Radio says it has just passed the 10,000 mark on the number of auto dealers participating in its “SiriusXM Pre-Owned Vehicle Program.” Sirius XM Radio Inc (NASDAQ:SIRI) announced the milestone Wednesday morning, saying members of the program are eligible to give buyers of their used cars a three-month subscription to SiriusXM satellite radio service, assuming the vehicles are already factory-equipped with a satellite radio system. Sirius said seven of the top 10 franchised auto dealer chains in the nation are part of its network, helping to broaden its reach to more potential subscribers to its service.

Is Apple The Reason The Price Of Sirius Dropped? (Seeking Alpha)
This past week, the shares of Sirius XM Radio Inc (NASDAQ:SIRI) dropped more than 11% from the post merger high of $3.63 reached in the last week of May to a low of $3.21 before closing at $3.29 on Thursday. There are all sorts of explanations for the drop, including the announcement of Apple Inc. (NASDAQ:AAPL) Computer’s venture into the crowded field of Internet radio. While Sirius XM offers commercial free music, advertising based alternatives, will be attractive to many potential Sirius XM subscribers. And, before everyone starts screaming about the exclusive content of Sirius XM, it should be remembered that the content is only exclusive for the duration of the contract. If Apple Inc. (NASDAQ:AAPL) were to view sports programming as an opportunity, would Sirius XM Radio Inc (NASDAQ:SIRI) be able to compete – or even want to?

Sirius XM Radio Inc (SIRI) Is Alright — For Now (Insider Monkey)
As part of its iOS 7 unveiling, Apple Inc. (NASDAQ:AAPL) announced that owners of particular automobiles would soon be able to beam a version of their iPhone’s interface directly to their vehicle’s touch-screen. This feature, combined with Apple’s upcoming iTunes Radio, has left some assuming the worse for Sirius XM Radio Inc (NASDAQ:SIRI). While I agree that Sirius XM could be challenged over the very long-term, the company has a number of unique value-adds that should prevent it from been pressured anytime soon. Last quarter, the company reported that it had 24.4 million subscribers, its most ever. The ongoing recovery in the US auto market may be benefitting Sirius, as it has a deal in place with most major automakers — Sirius is often included free for a limited time with new car purchases (and even some used).

SIRIUS XM Radio Inc. (NASDAQ:SIRI) and Amazon.com Inc. (NASDAQ:AMZN) Added to Equity Profile Report’s NASDAQ Gainers Watch List. (SBWire)
Equity Profile Report expands its NASDAQ Gainers Weekly Watch List adding Sirius XM Radio Inc (NASDAQ:SIRI) and Amazon.com, Inc. (NASDAQ:AMZN). SIRIUS XM Radio Inc. a company that provides satellite radio services in the United States and Canada is currently up (+2.60%) on 50,924,904 shares traded after Sirius XM Hosted Tina Sinatra For Father’s Day. Sirius XM Radio Inc (NASDAQ:SIRI) is currently up (+86.11%) from its recent 52-week low which has prompted Equity Profile Report to add the stock to their NASDAQ Gainers Watch List.

Dell Helps Redstation Grow Business by 70 Percent a Year (DailyFinance)
Redstation, a provider of dedicated hosting and co-location services, has experienced year-on-year growth of up to 70 percent with its dedicated infrastructure and cloud services underpinned by Dell Inc. (NASDAQ:DELL) PowerEdge 12th generation servers. The company selected Dell PowerEdge servers following a competitive analysis against Hewlett-Packard Company (NYSE:HPQ) and Supermicro. Redstation states it is able to achieve improved scalability, memory density and storage capacity with Dell PowerEdge R720xd servers and PowerVault storage. A 72 percent reduction in power cost has been achieved with the new infrastructure in place compared with its legacy infrastructure, allowing for an improved density per footprint without increased power costs. This has helped Redstation keep its prices low for customers, which is critical in the hosting industry where the ability to bring solutions to market quickly and at an affordable cost defines success.

Icahn Urges Dell to Commence $14-a-Share Tender Offer (Bloomberg)
Billionaire investor Carl Icahn, seeking to derail a planned leveraged buyout of Dell Inc. (NASDAQ:DELL), urged the computer manufacturer to make a tender offer for about 1.1 billion of its shares at $14 apiece. Icahn proposed the arrangement as an alternative to the Round Rock, Texas-based company’s plan to be taken private in a $13.65-a-share deal, outlined in a February proposal by founder Michael Dell and private-equity firm Silver Lake Management LLC. In an open letter today, Icahn urged Dell shareholders to vote against that proposal at a special meeting set for July 18.

Dell Chooses ZeroLag Communications as Part of its Dell Cloud Partner Program (PR Web)
ZeroLag Communications, Inc., an emerging leader in cloud hosting, has been selected by Dell Inc. (NASDAQ:DELL) as one of the three initial partners in the new Dell Cloud Partner Program to deliver public cloud Infrastructure as a Service (IaaS) to its customers. ZeroLag vCloud is an enterprise class, multi-tenant infrastructure-as-a-service public cloud solution that is hosted in secured ZeroLag and Dell Inc. (NASDAQ:DELL) data centers with cutting edge provisioning, management and performance managed by ZeroLag. With its unique hybrid cloud capabilities, the ZeroLag vCloud provides Dell’s customers with on-demand computing capacity to extend their internal data center with the same benefits they have in their own virtualized infrastructure.

Dell Beats Peers with PowerEdge Servers (Zacks.com)
Dell Inc. is going through a revival phase as it begins acting on the strategies discussed in the Dell Enterprise forum in June 2013, to evolve its business model. Dell Inc. (NASDAQ:DELL) has adopted some innovative solutions, which include the PowerEdge 12th generation servers. These servers are designed to attract more customers and address more dynamic business requirements. While they increase the level of business efficiency, productivity and reliability, they effectively reduce costs. Dell is making valuable contribution to its customers. The company has been instrumental in reducing the Chinese steel maker TAGAL’s cost of ownership by 20.0%, and has been able to improve the customer response time with its enterprise solution.

Dell VRTX — A Nice Package for SMBs, Remote Offices (SiliconANGLE)
Dell Inc. (NASDAQ:DELL) has introduced a nice converged system for the SMB and remote office marketplaces in the VRTX, writes Wikibon Analyst, Founder, and Managing Consultant of the 1610 Group, and former CIO Scott Lowe in his latest Wikibon Alert. The VRTX is unusual in its size — it is limited to four servers and 48 TB of storage. “And that’s it,” he writes. “There is no ‘expansion pack’ or ‘scalability cable’ that magically expands the VRTX beyond these walls.” Physically it is a small box that can fit under a desk or in a corner of the otherwise empty office or closet that serves as the data center for many SMBs and remote offices.

At its worst, an act of RN comes without warning, and without compensation for the seized assets. More commonly, a government fails to honor a contract, demands a larger percentage of ownership, changes partnership or JV terms or cancels an agreement entirely.

Resource Nationalism, More Than Meets the Eye

However, RN manifests itself in less explicit ways. For example, via a sudden increase in corporate taxes or royalties. Or, special treatment for domestic companies. Forcing foreign companies to use favored entities for transporting or processing commodities is another example. State-controlled agencies can delay, cancel or fail to grant key permits and fine or suspend mining licenses.

In recent years, non-government actors are playing a disturbing role. Terrorism, for example, is increasingly targeting “soft” industrial assets. Environmental groups are stepping up their game with legal challenges and interruptions of mining activities. Probably the biggest increase in RN is from labor unions and local community opposition groups. In these later instances, clashes sometimes become violent.

Resource Nationalism, in all forms, is a global scourge, and it’s getting worse. There is no cure, and the problem is spreading to countries traditionally deemed to be safe–countries like South Africa, Peru and Chile. Even Australia dropped a bombshell a few years back with a large increase in mining taxes.

Why You Should Care

In the past two years, most commodity prices have fallen significantly. However, demand for key commodities is certain to grow. Global population growth and urbanization leave little doubt. When demand picks up, challenges from RN, will inhibit supply from keeping pace. Foolish investors who pick the right natural resource stocks stand to benefit from rising commodity prices.

Which Commodities Are Most at Risk to Supply Shortfalls?

Two things need to be analyzed in trying to pick the best commodities: supply/demand dynamics and geographic diversity/security of supply. The first can be measured by the spot price and current pricing trends. Iron ore prices are down about 30% from February. Supply is known to be going up as Rio Tinto plc (ADR) (NYSE:RIO), BHP Billiton Limited (ADR) (NYSE:BHP) and Vale SA (ADR) (NYSE:VALE) have ample new production planned for 2014-15.

Iron ore is the poster boy of a commodity that investors should stay away from. Rio Tinto plc (ADR) (NYSE:RIO), BHP Billiton Limited (ADR) (NYSE:BHP) and Vale SA (ADR) (NYSE:VALE) have a stranglehold. Even with iron ore prices down 30%, at a spot price of about $112 per metric tonne, the Big-3 producers still enjoy 50%+ gross margins while companies like Cliffs Natural Resources flounder with much higher costs.

The drug is the long-acting version of the oral version of Zyprexa, which is taken daily. Zyprexa Relprevv is injected every two to four weeks.

Eli Lilly & Co. (NYSE:LLY) had trouble getting Zyprexa Relprevv approved, and when it did, the FDA slapped a black box warning recommending that patients be observed by a health care professional for at least three hours after each injection because high levels of the drug can cause sedation and delirium.

The two patients died three to four days after receiving the dose, well after the observation period. Both had high levels of the active ingredient in their blood.

Not the end of the world
We’re still in the investigation phase. At this point, there appears to only be a correlation, but causation hasn’t been established just yet. Even if Zyprexa Relprevv is pulled from the market because the FDA is worried that the drug is released faster than it’s supposed to, it won’t be a major issue for Eli Lilly & Co. (NYSE:LLY).

The company doesn’t even bother breaking out sales of Zyprexa Relprevv in its earnings report. Bloomberg reported that a Eli Lilly & Co. (NYSE:LLY) representative said Zyprexa Relprevv sales accounted for less than $60 million last year. That’s out of $22.6 billion, or about 0.2% of revenue. Losing the drug would hardly be noticed, certainly nothing like Eli Lilly & Co. (NYSE:LLY) experienced when the oral version, which was selling $4.6 billion per year, started seeing generic competition.

Johnson & Johnson (NYSE:JNJ) is the leader for the long-acting antipsychotic, selling $1.4 billion worth of Risperdal Consta and $800 million worth of Invega Sustenna last year. Alkermes Plc (NASDAQ:ALKS) also benefits from a royalty on both drugs. It developed the extended-release technology in Risperdal Consta, and Alkermes Plc (NASDAQ:ALKS) acquired the royalty rights to Invega Sustenna when it bought Elan Corporation, plc (ADR) (NYSE:ELN)‘s drug technology division.

Those sales are pretty impressive considering that the oral version of Risperdal is available as a generic. Doctors clearly see an advantage in having schizophrenic patients not taking daily oral medications, where compliance isn’t always as high as doctors would like. Since they have to be injected by a health-care professional, prescribing the injected medication also allows psychiatrists more frequent contact with the patient and better drug monitoring.

The article The FDA Might Pull This Drug From the Market (and Why It Doesn’t Matter) originally appeared on Fool.com is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

I’ll also be asking whether these negative factors make this FTSE 100 mining giant a poor investment today.

Remuneration
Remuneration committees bang on about having to provide executives with “competitive” pay packages. Fair enough, but I think shareholders like to see remuneration balanced toward a relatively low fixed element — base salary, pension and other benefits — with a significant element linked to performance.

The table below shows the FTSE 100′s big four miners, their turnover for 2012, and the fixed element of the chief executives’ remuneration.

Not hard to spot the anomaly, is it?

Asset writedowns
During January this year Rio Tinto plc (LON:RIO) announced US$14 billion of asset writedowns. There was a reduction of US$10-11 billion in the carrying value of the group’s aluminum assets (mostly those acquired by the 2007 takeover of Alcan), an impairment charge of $3 billion for coal assets acquired during 2011, and a number of other smaller writedowns.

What this means is that Rio Tinto plc (LON:RIO) has a recent history of paying over the odds for assets. Will there be further writedowns? I don’t know, but the company has repeatedly reduced the carrying value of the Alcan assets, such that it has now written down something like US$28 billion of the US$38 billion purchase price.

Norway
What’s Norway got to do with anything? Well, the country has the largest sovereign wealth fund in the world. The “Government Pension Fund – Global”, established in 1990 to invest Norway’s surplus oil income, has a current asset value of US$737 billion and holds about 1% of the entire shares of global equity markets.

The fund has an “ethical” screen, but not a very severe one. It’s something of an embarrassment, then, that Rio Tinto plc (LON:RIO), unlike its big Footsie peers, doesn’t come up to scratch. Rio is ranked alongside Indian company Vedanta Resources as a no-go miner on account of ”Actions or omissions that constitute an unacceptable risk of the Fund contributing to … severe environmental damages”.

A poor investment?
Let’s be generous and say that the past is the past. Rio’s previous chief executive, Tom Albanese, was given the heave-ho after the asset writedowns I mentioned, and new man Sam Walsh is well respected within the industry. Walsh has promised that Rio will be a very different company going forward, particularly with regard to discipline in capital allocation, which includes acquisitions.

With the mining sector currently out of favor generally, Rio Tinto plc (LON:RIO), at a share price of around 2,800 pence, is trading on just eight times forecast earnings for 2013, falling to seven times 2014 earnings. At the same time, analysts reckon we’ll see Rio Tinto plc (LON:RIO) deliver double-digit earnings growth for each of those years. And there’s a prospective 4.2% dividend income just for good measure.

The article 3 Things to Loathe About Rio Tinto originally appeared on Fool.com and is written by G. A. Chester.

G.A. Chester has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

About PPG Industries

PPG Industries, Inc. (NYSE:PPG) makes most of its money from coatings, and about 15% from its glass products. The business is divided into five segments, three for the coatings and two for the glass business.

As far as coatings go, the largest segment by revenue is the Performance segment, which produces aerospace, protective, marine, and automotive coatings. Industrial coatings consist of packaging coatings and other coatings meant for various industrial equipment. Finally, Architectural coatings produces coatings for use by painting professionals that are sold through PPG Industries, Inc. (NYSE:PPG)’s company-owned stores and other retail channels.

The company’s glass business is divided into two segments. The first, simply called the glass segment, consists of PPG Industries, Inc. (NYSE:PPG)’s flat glass business, which is one of the largest in North America. The company produces flat glass for construction, aircraft, furniture, and other uses. The other segment is called Optical and Specialty materials, and includes Transitions lenses, sun lenses, and many other optical products.

A busy year so far…

In addition to the business segments listed above, PPG was involved in the commodity chemicals business until this year, producing chlor-alkali and various derivatives. At the end of January, the company merged its commodities chemicals business with Georgia Gulf, now Axiall Corp (NYSE:AXLL). As a result of the transaction, $900 million in cash was paid to PPG directly and about $1 billion of Axiall shares was paid to PPG’s shareholders. Commodity chemicals is a rather volatile business that tend to carry with it lower profit margins, so this transaction helps PPG reach its goal of more consistent and predictable growth. On an investment note, Axiall could end up producing great returns if raw material and energy costs continue to work in their favor.

Individual investors can benefit greatly from studying insider activity. Whether you are taking a sector view or considering an individual company, learning to read the SEC filings can be a powerful resource and strengthen your overall investment thesis.

Here are three large insider purchases that caught my eye in recent days:

Multinational cruise company

The Miami, FL headquartered Carnival plc (ADR) (NYSE:CUK) is the largest cruise company in the world, with a portfolio of cruise brands operating in North America, Europe, Australia, and Asia. Readers may recognize Carnival plc (ADR) (NYSE:CUK) by its chairman and CEO Micky Arison, the owner of professional basketball team Miami Heat which is competing in the NBA Finals.

Back on May 20, Carnival plc (ADR) (NYSE:CUK) provided new earnings guidance for the second half of 2013. Aggressive marketing has caused Carnival plc (ADR) (NYSE:CUK) to lower its ticket prices, thereby reducing its full year revenue guidance by 2 to 3% compared to prior guidance of flat Year-over-Year (YoY) revenue. The competitive ticket pricing will have a significant effect on earnings, however, which Carnival reduced to a $1.45 to $1.65 range from a prior $1.80 to $2.10.

Shares of Carnival plc (ADR) (NYSE:CUK) fell nearly 10% following the news as investors adjusted their positions for lowered expectations. However, insider buying at Carnival leads me to believe that recent selling is overdone.

Carnival plc (ADR) (NYSE:CUK) board member Randall J. Weisenburger stepped in on May 24 amidst the negativity, purchasing 40,000 shares of stock for $32.96 per share. The transaction value amounted to a massive $1,318,000 when the stock was purchased, one of the largest insider purchases in recent weeks.

While only time will tell if Carnival can recover its former earnings growth, shareholders are paid to wait with a 3.0% dividend.

Online advertising giant

Readers may reminisce about AOL, Inc. (NYSE:AOL) from its tech-bubble heyday when the technology giant became one of the world’s most valuable companies. While AOL, Inc. (NYSE:AOL) no longer maintains its former dominance, the company is one of the largest producers of digital content and sellers of display advertising.

On May 8, AOL, Inc. (NYSE:AOL) reported first quarter 2013 results with impressive profit and revenue growth across nearly all business lines. Earnings rose to $0.32 compared to $0.22 during the first quarter of 2012, while advertising revenue grew 9% year-over-year.

AOL, Inc. (NYSE:AOL) is transitioning from a subscription-based model used at Internet providers such as EarthLink, Inc. (NASDAQ:ELNK) and Time Warner Cable Inc (NYSE:TWC) to an advertising model like Google Inc (NASDAQ:GOOG). Total revenue grew 2% compared to the first quarter 2012 as gains in advertising (+$29.1 million) offset declines in subscription revenue (-$16.3 million). As fewer customers use AOL, Inc. (NYSE:AOL)’s “You’ve Got Mail” online service, the company is gaining market share in the digital advertising market.

In addition to fundamentals, recent insider buying adds optimism that AOL’s transition is going well. Board member Frederic Reynolds bought 28,000 shares of stock for $34.26 following the first quarter earnings release. The transaction value amounted to $959,000 when the shares were purchased on May 29. Prior to retirement, Reynolds was an executive vice president and chief financial officer at CBS Corporation (NYSE:CBS), a leader in media advertising.

Despite being less than 1% the size of Google Inc (NASDAQ:GOOG), I believe AOL, Inc. (NYSE:AOL) is gaining traction among advertisers. I recommend buying the shares on the back of the strong quarter and recent insider purchases.

Investors seem to be increasingly asking the question: What is the fair price for a quality transportation company? With many traditional valuation methodologies reverting to mean historical multiples, investors could make the case that many transportation stocks are nearing ‘full’ valuation. However, with lower multiples relative to other large industrial companies and near top quartile return generation, certain ‘quality’ stocks within the group deserve a wider comparison universe apart from the usual suspects.

In this note, we take a fresh view on valuation for the largest and highest return companies. Slow growth and a rapidly appreciating market make stock picking a challenge for sell-side analysts and investors alike. It is surely acknowledged that upside from here in many stocks is challenging, at least through the cautious outlook. However, the chase for yield is powerful and has us revisiting what to pay for the high return generators in the transportation group.

Screening the best transportation companies

We run a screening test on three filters:

1) Capital returns

2) Cash flow generation

3) Annual earnings growth

Results highlight that top performing transportation companies Canadian National Railway (USA) (NYSE:CNI), Union Pacific Corporation (NYSE:UNP) and United Parcel Service, Inc. (NYSE:UPS) screen favorably relative to both respective sub-sector and industrial peers, making a strong case for the ‘top-quality transport companies.’ These three companies ranked in the top two quartiles in terms of capital returns and potential earnings growth, while also screening favorably in terms of cash flow generation:

*Qtl denotes Quartile.

Union Pacific remains a top holding

Admittedly, Union Pacific Corporation (NYSE:UNP)’s share performance this year (+9% vs. S&P) has captured a majority of the expected upside. But with an improving return and cash generation profile as well as higher near-term growth expectations, the shares are expected to benefit from an improved relative multiple, similar to other large industrial companies.

The railroad has been one of the most popular transportation companies at the Street for its potential growth. Its western network has helped it to benefit from the rising demand for crude oil in domestic energy markets. Not only this, the network has also helped the company to transport automotives and hence benefit from the rapidly surging US auto SAAR (seasonally adjusted auto rate).

However, this should not mean the peak for Union Pacific Corporation (NYSE:UNP). The company is still expected to make a business of $850 million by transporting crude oil by 2014. This would equal almost 4% of the overall revenue for the company. Also, the carrier is expected to benefit from pricing gains in its southern network where it is operating on near capacity conditions.

The snacking powerhouse

With annual revenues of approximately $36 billion, Mondelez is a global snacking power house and a dominating player in the snack food industry. It owns a strong product and brand portfolio which includes: Cadbury, Nabisco, Ritz, Chips Ahoy, and Oreo.

Mondelez was previously part of Kraft Foods Group Inc (NASDAQ:KRFT), but was spun off into a global snacking business. The decision to spin-off will eventually reward Mondelez International Inc (NASDAQ:MDLZ) investors as the stock will trade at higher price multiple over time, mainly due to international growth opportunities.

It is predicted by management and analysts that Mondelez will experience 5% – 7% top line growth and double digit bottom line expansion over the long term. The key catalysts are the significant emerging market exposure, further margin expansion, and a strong product portfolio.

Growth drivers

Almost 44% of the total revenue for the company is earned from emerging markets including Mexico and the BRIC nations.  As the middle class grows, income levels will grow, and this will likely drive up the demand for food categories offered by Mondelez.

Mondelez also has potential to expand its bottom line over time through margin expansion. It has lower operating margins in the industry as compared to its competitors. Mondelez International Inc (NASDAQ:MDLZ) is working towards cost reduction and achieving operational efficiency, which will likely drive its bottom line.

Another important growth driver for the company is its strong product portfolio. The company has a leading market share in chocolate, biscuits, and sugar confectionery.  73% of its revenue comes from snacks, 17% from beverages, and 10% from cheese and grocery products. With such a dominating product portfolio Mondelez should continue to enjoy consumer loyalty and robust growth.

Other players

Kellogg Company (NYSE:K) is a producer of cereals and convenience foods, with annual revenue of approximately $12.5 billion. Kellogg manufactures its products in 20 countries and markets them in more than 150 countries. The leading cereal brands for Kellogg are Rice krispies, Kellogg’s Frosted Flakes and Special K. Kellogg is well positioned in the industry to grow at healthy rates over the coming years due to productivity gains and strong product innovation.