Top 5 Electric Utility Companies To Watch For 2014

The U.S. mortgage market�� largest lenders are pulling back amid looming regulations and a drop in refinancing that fueled record profits last year.

Citigroup Inc. (C), the third-biggest U.S. bank, is selling mortgage-servicing rights on $63 billion of loans, or about 21 percent of its total contracts at midyear, according to two people briefed on the matter, who asked not to be identified because the sale is private. Wells Fargo & Co. (WFC), the largest home lender, began marketing rights on $41 billion of government-backed home loans in September.

Banks are scaling back from the almost $10 trillion market for mortgage servicing rights, or MSRs, amid looming Basel III regulations. That�� attracting private-equity firms and hedge funds to assets that can increase in value when borrowing costs rise and giving them increased control over the rights to collect Americans��monthly mortgage payments. Lenders such as Bank of America Corp. (BAC) are also cutting home-loan staff after refinancings dropped more than 60 percent since May, according to the Mortgage Bankers Association.

Best Net Payout Yield Companies For 2015: Public Service Enterprise Group Incorporated(PEG)

Public Service Enterprise Group Incorporated, through its subsidiaries, operates in the energy industry primarily in the northeastern and mid Atlantic United States. The company primarily operates as a wholesale energy supply company that integrates its generating asset operations through its wholesale energy, fuel supply, energy trading, and marketing and risk management activities. It operates nuclear, coal, gas, and oil-fired generation facilities. The company also involves in the transmission of electricity and distribution of electricity and natural gas to residential, commercial, and industrial customers, as well as invests in the development of solar generation projects and energy efficiency programs. In addition, it owns and operates domestic projects engaged in the generation of energy; and offers appliance services and repairs to customers. As of December 31, 2010, it owned approximately 13,538 megawatts of generation capacity. The company also owned and operated approximately 17,608 miles of gas mains, 12 gas distribution headquarters, and 2 subheadquarters, as well as 62 natural gas metering and regulating stations. Public Service Enterprise Group was founded in 1985 and is based in Newark, New Jersey.

Advisors' Opinion:

• [By Richard Stavros]

  Among those companies that are winding down their spending programs, NextEra Energy Inc (NYSE: NEE) accounts for almost 30 percent of the projected $10 billion decline in annual spending from 2013 to 2015. Other larger-cap companies with projected 2015 budgets that are below their 2013 levels include: CenterPoint Energy Inc (NYSE: CNP), Dominion Resources Inc (NYSE: D), PPL Corp (NYSE: PPL), Public Service Enterprise Group Inc (NYSE: PEG), and Southern Company (NYSE: SO).

• [By Stephen Quickel]

  The stock trades at forward P/E of 22.8 times the consensus 2014 earnings estimate. Factoring in its 23.2% a year expected bottom line growth, the stock's P/E to Growth (PEG) ratio of 0.98—right at the 1.00 level—is considered ideal by PEG ratio advocates.

• [By Richard Stavros]

  The Top Low-Carbon Utilities

  PG&E Corp (NYSE: PCG) Exelon Corp (NYSE: EXC) Entergy Corp (NYSE: ETR) Public Service Enterprise Group Inc (NYSE: PEG) NextEra Energy Inc (NYSE: NEE) Dominion Resources Inc (NYSE: D) Sempra Energy (NYSE: SRE)

  But that is not to say that, over the long term, high-carbon utilities might not be able to crack the technology and cost issues that would make “clean coal” competitive with other low-carbon energy sources. Secretary of Energy Ernest Moniz has said, “No discussion of US energy security and reducing global CO2 emissions is complete without talking about coal and the technologies that will allow us to use this resource more efficiently and with fewer greenhouse gas emissions.”

• [By Shauna O'Brien]

  Jefferies announced on Tuesday that it has upgraded Public Service Enterprise Group Inc. (PEG).

  The firm has lifted its rating on PEG from “Hold” to “Buy,” and has raised the company’s price target from $36 to $37. This price target suggests a 12% increase from the stock’s current price of $32.42.

  Analyst Paul Fremont commented: “We are upgrading to Buy based on the improving outlook for regulatory approval of the company’s “Energy Strong” capital spending program.

  “Each $1.0 billion of incremental spending will add an estimated $0.10 to PEG’s earnings. We assume that incremental spending is funded by debt and by incremental cash expected from the increasing gas basis differential between the Leidy hub and New Jersey. Our new estimates are considerably higher than consensus in 2014-16.”

  Public Service Enterprise Group shares were mostly flat during pre-market trading Tuesday. The stock is up 6% YTD.

Top 5 Electric Utility Companies To Watch For 2014: Janus Capital Group Inc (JNS)

Janus Capital Group Inc., and its subsidiaries (JCG), incorporated on January 23, 1998, provide investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, other pooled investment vehicles, separate accounts and sub advised relationships (collectively referred to as investment products) in both domestic and international markets. JCG provides investment management competencies across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives through its subsidiaries, Janus Capital Management LLC (Janus), INTECH Investment Management LLC (INTECH) and Perkins Investment Management LLC (Perkins). JCG's investment products are distributed through three primary channels: retail intermediary, institutional and international.

The institutional channel serves the United States corporations, endowments, foundations, Taft-Hartley funds and public fund clients and focuses on distribution direct to the plan sponsor and through consultants. As of December 31, 2012, assets in the institutional channel totaled 24% of total Company assets under management. The international channel primarily serves professional retail and institutional investors outside of the United States, including central and local government pension plans, corporate pension plans, multi-managers, insurance companies and private banks. International products are offered through separate accounts, sub advisory relationships and Janus Capital Funds Plc, a mutual fund trust. As of December 31, 2012, assets in the international channel totaled 11% of total Company assets under management. JCG operates international offices in London, Paris, Milan, Munich, Frankfurt, The Hague, Dubai, Zurich, Singapore, Hong Kong, Tokyo, Melbourne and Taipei. The retail intermediary channel serves financial advisors, third-party intermediaries and retirement platf! orms in the United States. In addition, this channel serves existing individual investors who invest in JCG products through a mutual fund supermarket or directly with JCG. As of December 31, 2012, assets in the retail intermediary channel totaled 65% of total Company assets under management.

Janus

Janus manages primarily growth equity portfolios. As of December 31, 2012, Janus managed 63% of total Company assets under management. The Janus Overseas Fund is included in the assets managed by Janus and represented approximately 6% during the year ended December 31, 2012.

INTECH

INTECH has managed institutional portfolios. INTECH's investment process is based on a mathematical theorem that seeks to add value for clients by capitalizing on the volatility in stock price movements. As of December 31, 2012, INTECH managed 26% of total Company assets under management.

Perkins

Perkins has managed value-disciplined investment products. With its fundamental research and careful consideration for downside risk, Perkins has established itself as a value manager. Perkins offers value equity investment products across a range of the United States asset classes and global equity. As of December 31, 2012, Perkins managed 11% of total Company assets under management.

Advisors' Opinion:

• [By Matt Jarzemsky]

  “Valuations for many of these companies seem just as stretch as Internet stocks were back then,” asset management firm Janus Capital(JNS) writes in its latest monthly equities update. Some Janus funds rode high-flying technology and communications stocks to big gains during the 1990s, but saw those bets sour as the tech bubble burst.

• [By Dan Caplinger]

  Who wants in on the action?
  All that said, plenty of mutual fund companies have seen the writing on the wall and are eager to come to market with active ETFs. Mutual fund giants Fidelity, Franklin Templeton (NYSE: BEN  ) , Janus Capital (NYSE: JNS  ) , and Legg Mason (NYSE: LM  ) are just some of the companies looking to follow in PIMCO's footsteps with active ETFs. Each of these companies owes a huge portion of its profits to management fees on the billions in assets that it holds, and each recognizes the need to defend its turf by reaching into the ETF space. For Legg Mason and Franklin Templeton, which already offer closed-end mutual funds that trade on exchanges, moving to ETFs is an even shorter step.

Top 5 Electric Utility Companies To Watch For 2014: Multi-Corp International Inc (MULI)

Multi-Corp International Inc., incorporated on December 10, 2006, is a energy company. The Company is engaged in the exploration, development, production and acquisition of oil and gas properties. The Company intends to focus its operations in Eddy County, New Mexico.

As of December 31, 2012, the Company had 100% working interest in the 2,800 acre Cave Pool Property in Eddy County, New Mexico. As of December 31, 2012, it owned 14 shut-in oil wells that had produced from the Grayburg sands and it had an estimated 51 identified drilling and recompletion locations, of which 14 were proved undeveloped.

Advisors' Opinion:

• [By Peter Graham]

  One way or the other, small cap stocks mLight Tech, Inc (OTCMKTS: MLGT), Multi-Corp International Inc (OTCMKTS: MULI) and Brownie's Marine Group Inc (OTCMKTS: BWMG) have been getting some attention lately. For starters, one of these stocks has been the subject of paid promotions, another might be getting dragged into a controversy involving yet another small cap and the last stock sank 18.34% on Friday. So what�� going on with these three small cap stocks and what should be your trading or investing strategy? Here is a close look:

Top 5 Electric Utility Companies To Watch For 2014: Atmos Energy Corporation(ATO)

Atmos Energy Corporation, together with its subsidiaries, engages primarily in the distribution, transmission, and storage of natural gas in the United States. The company operates in four segments: Natural Gas Distribution; Regulated Transmission and Storage; Natural Gas Marketing; and Pipeline, Storage, and Other. The Natural Gas Distribution segment involves in regulated natural gas distribution business and related sales operations. It distributes natural gas through regulated sales and transportation arrangements to approximately 3 million residential, commercial, public authority, and industrial customers in 12 states located primarily in the southern United States. As of September 30, 2009, this segment owned approximately 70,879 miles of underground distribution and transmission mains. The Regulated Transmission and Storage segment transports natural gas for third parties and manages five underground storage reservoirs in Texas. It owned 5,950 miles of gas transmis sion and gathering lines. The Natural Gas Marketing segment provides various natural gas management and marketing services to municipalities, other local gas distribution companies, and industrial customers. The Pipeline, Storage, and Other segment offers natural gas gathering, transmission, and storage services. It owned 113 miles of gas transmission and gathering lines. Atmos Energy Corporation was founded in 1906 and is headquartered in Dallas, Texas.

Advisors' Opinion:

• [By Marc Courtenay]

  Another lesser-known possibility is Atmos Energy (ATO), the $3.93 billion (market cap) company that engages in the distribution, transmission, and storage of natural gas in the United States. As of the last quarter of 2012, its year-over-year EPS growth was 17.5%.

• [By Garrett Cook]

  Utilities shares fell around 0.23 percent in trading on Wednesday. Top losers in the sector included Vectren (NYSE: VVC), down 1.47 percent, and Atmos Energy (NYSE: ATO), off 0.80 percent.

• [By Inyoung Hwang]

  Atos (ATO) dropped 3.5 percent to 62.07 euros for a fifth straight day of losses. Shareholder PAI Partners SAS is selling 8.9 million shares in the French company for 61.25 euros each.

• [By Marc Bastow]

  Natural gas distribution and storage company Atmos (ATO) raised its quarterly dividend 5.7% to 37 cents per share, payable on Dec. 9 to shareholders of record as of Nov. 25. The increase marks the 26th consecutive year Atmos has raised its annual dividend.
  ATO Dividend Yield: 3.26%