Top 5 Sliver Companies To Watch For 2014

Delta's aircraft were more than 86% full in May. Credit: Benjamin Beyers for The Motley Fool.

According to new data from the International Air Transport Association, or IATA, via CNN, the world's airlines average just $5.42 in profit per ticket, for a net profit margin of only 2.4%.

Think that sounds bad? You don't know the half of it. Cut-rate retailer Wal-Mart still earns 3.3% on the bottom line -- nearly a percentage point better than the average airline. No wonder some carriers are struggling.

What to do, especially now that overall capacity is shrinking the wake of big mergers? Fill more seats on every flight. As an investor, you can track this via a widely reported metric known as "load factor."

Busier skies mean more potential profit
To be fair, there's no perfect correlation between high load factor and high profits. Even a carrier that packs its aircraft sardine-tight could still fall victim to unexpected fuel, maintenance, or labor expenses. Or weather delays could cancel flights and cut overall capacity, crimping profits. Airlines suffer from unknowns like no other industry.

Best Medical Stocks For 2015: Basf SE (BASFY)

BASF SE is a chemical company. The Company operates in six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas. Chemicals segment offers products in the chemical, electronic, construction, textile, automotive, pharmaceutical and agricultural industries. Plastics segment offers a range of products, system solutions and services. Performance Products help its customers to improve their products and processes. Functional Solutions segment bundles system solutions and products for customers and industries. The Company�� Agricultural Solutions segment includes crop protection products, which guard against fungal diseases, insects and weeds. Its Oil & gas segment is a producer of oil and gas. On April 9, 2009, the Company acquired Ciba Holding AG. In April 2010, Intertek Group plc acquired the Regulatory and Safety Testing businesses of Ciba Expert Services (Ciba ES) from the Company. In December 2010, the Company completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l.

Chemicals

The Company�� Chemicals segment portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and flat panel display industry, to solvents and plasticizers, as well as starting materials for detergents, plastics, textile fibers, paints, coatings and pharmaceuticals. This segment is organized into three divisions: Inorganics, Petrochemicals and Intermediates. The important basic products of the Inorganics division are ammonia, methanol, sodium hydroxide, chlorine, as well as sulfuric and nitric acid. The Petrochemicals division produces products, such as ethylene, propylene, butadiene and benzene, which are produced in steam crackers from naphtha or natural gas. In further processing stages, it produces alcohols, solvents and plasticizers for the chemicals and plastics industries. BASF SE�� Intermediates division develops, produces and markets a range of intermediates of all produc! ers worldwide. The product lines include amines, diols, polyalcohols, acids and specialties. They serve as starting materials for products, such as coatings, plastics, pharmaceuticals, textile fibers, crop protection products, as well as detergents and cleaners.

Plastics

BASF�� Plastics segment is organized into two divisions: Performance Polymers and Polyurethanes. The Performance Polymers division is a supplier of engineering plastics, polyamides and polyamide intermediates, foams and specialty plastics. The Company offers its customers a portfolio of engineering plastics based on polyamide 6 and polyamide 6,6. This is complemented by products Ultradur, Ultraform and Ultrason. For the packaging, textile and food industries, it offers Ultramid, a base product for the manufacturing of fibers and foils. BASF SE�� product range also includes Ecoflex and Ecovio, biodegradable specialty plastics for the packaging industry. Styropor and its refinement Neopor are styrene-based precursors for foams used in insulating material for construction and packaging. The Polyurethanes division is a supplier of basic products, systems and specialties. The Company offers polyurethane products for numerous customer applications. Under brand names, such as Elastoflex and Elastopor, polyurethanes are used, as rigid or flexible foams in construction for furniture and household appliances.

Performance Products

The Performance Products segment consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. Acrylics & Dispersions produces acrylic acid, as well as its derivatives superabsorbents and polymer dispersions. Superabsorbents are used particularly in diapers. Polymer dispersions are used in the production of glues, coatings, nonwoven materials and construction chemicals. The Company�� product portfolio for the paper industry consists of binders, process chemicals and kaolin pigments. Its Care Chemicals portfolio consists of products f! or cleani! ng, care, cosmetics and hygiene. Performance Chemicals pools specialties for various customer industries. The product portfolio consists of antioxidants, pigments, light stabilizers and specialty additives. The division also makes chemicals for the production and finishing of leather and textiles.

Functional Solutions

The Functional Solutions segment consists of the Catalysts, Construction Chemicals and Coatings divisions. The Catalysts division develops catalysts and adsorbents. It produces catalysts that transform pollutants in the exhaust flows of vehicles into harmless chemical and plastics. The Construction Chemicals division is engaged in development of concrete admixtures, such as concrete plasticizers, deferrers and curing agents. It also produces and markets construction systems. The Coatings division is a provider of coatings solutions for automotive and industrial applications. Its brands Glasurit and R-M are for the car refinish business.

Agricultural Solutions

The Agricultural Solutions segment consists of the Crop Protection division. The Company develops and produces active ingredients and formulations for the improvement of crop health and yields, and markets them worldwide. Its portfolio includes fungicides, insecticides, herbicides and seed treatments. Its product Headline contains the active ingredient F500, which is not only used for corn and soybean, but also for numerous other crops.

Oil & Gas

BASF�� oil and gas activities are bundled in the Wintershall Group. Wintershall and its subsidiaries operate in the business sectors exploration and production, and natural gas trading. In the exploration and production of oil and natural gas, the Company focuses on oil and gas regions in Europe, North Africa and South America, as well as Russia and the Caspian Sea region. The Mittelplate oil field in the North Sea tidal flats is the cornerstone of the Company�� oil production in Germany. Wintershall and RWE-D! EA each h! old a 50% interest in this field. During the year ended December 31, 2009, it acquired 25% interest in Cuxhaven concession. It operates 26 offshore platforms in Mittelplate region, of which 19 are actually controlled. In Libya, Wintershall operates eight onshore oil fields in the concessions 96 and 97 and exploits the associated gas released during crude oil production in a gas utilization plant for the local demand. In Mauritania, it operates two onshore exploration blocks. In 2008, Wintershall acquired stakes of 50% each in two exploration areas in the Canadon Asfalto Basin. It supplies Germany and several other European countries. The gas pipeline network operated by WINGAS TRANSPORT connects the markets in Western Europe with a natural gas infrastructure that runs through Eastern Europe and the Russian Federation all the way to the gas fields in Siberia. Other components portfolio include natural gas storage facility in Western Europe, in Rehdn, Germany, and the natural gas storage facility in Haidach, Austria.

Advisors' Opinion:

• [By Maxx Chatsko]

  It was only a matter of time. Last month BASF (NASDAQOTH: BASFY  ) , the world's largest chemical company, announced three separate developments that will thrust it from being a mediocre player in industrial enzymes to a dominant force. BASF acquired Henkel's detergent enzyme technology, licensed the C1 biotechnology platform from Dyadic, and befriended Direvo Industrial Biotechnology from Germany for a next-generation animal feed enzyme.

Top 5 Sliver Companies To Watch For 2014: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.

Advisors' Opinion:

• [By Dan Caplinger]

  UnitedHealth (NYSE: UNH  ) also fell, losing 0.9% on the same day that rival Aetna (NYSE: AET  ) reported earnings. Aetna managed to increase its earnings by keeping premium prices high and cutting its costs, and it's positioning itself to deal with the onset of health exchanges and other key provisions of Obamacare that will take effect within the next year. But what's increasingly clear is that competition among health insurance carriers will become fierce as Obamacare is increasingly implemented, and UnitedHealth needs to defend its leadership position by getting its plans onto as many health exchanges as possible without cutting profit margins any further than the new health-care law will require.

• [By Keith Speights]

  Moving mountains?
  There isn't much for investors to get excited about with this development at first glance. Sure, several publicly traded companies should like the news. For example, UnitedHealth Group (NYSE: UNH  ) and Aetna (NYSE: AET  ) sell insurance in Arkansas. These insurers could potentially pick up additional business.

Top 5 Sliver Companies To Watch For 2014: Lowe's Companies Inc.(LOW)

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.

Advisors' Opinion:

• [By Chris Hill and Jason Moser]

  In the video below, Motley Fool analyst Jason Moser discusses why Home Depot (NYSE: HD  ) will benefit from a growing trend of home renovation. Historically, Home Depot and Lowe's (NYSE: LOW  ) have traded places for industry dominance, but over the past few years Home Depot has held on to the top spot. But with shares of Home Depot near an all-time high, is the stock too pricey for investors? Moser shares why he believes Home Depot is still a good value.

• [By John Maxfield]

  The news added to a growing chorus of evidence that the housing recovery is gaining momentum and is helping to fuel the shares of companies that look to the housing market for business. As I write, home improvement retailers Lowe's (NYSE: LOW  ) and Home Depot (NYSE: HD  ) are both trading higher. The former is up 2.6% while the latter is gaining 0.22%.

• [By Ben Levisohn]

  J.M. Smucker (SJM) dropped 6.5% to $101.49 today, making it the biggest loser in the S&P 500, with Lowe’s (LOW) close behind, down 6.2% at $47.33. Other big losers include Newmont Mining (NEM), which fell 3.5% to $26.39, eBay (EBAY), which has dropped 3.3% to $50.39, and Iron Mountain (IRM), which declined 3.3% to $28.71.

• [By Jeremy Bowman]

  Home-improvement retailer Lowe's (NYSE: LOW  ) wasn't as lucky as its shares fell 6.2% on a weaker-than-expected outlook. Overall, it was a strong report for the Home Depot rival as same-store sales grew 6.2%, and earnings per share jumped 34.3% to $0.47, but that missed the Street's expectations of $0.48. Lowe's also raised its full-year EPS guidance to $2.15 from $2.10, but that was below the analyst mark at $2.19. The housing sector has boomed this year, lifting retailers and homebuilders alike, and Lowe's shares are still up 30% year to date. Today's drop seems to be more of a valuation-based correction rather than a long-term sign.

Top 5 Sliver Companies To Watch For 2014: Rio Tinto Plc(RIO)

Rio Tinto plc engages in finding, mining, and processing mineral resources. The company produces aluminum products, including bauxite, alumina, and aluminum; copper, gold, molybdenum, silver, and nickel; diamonds; minerals, such as borates, titanium dioxide feedstocks, high purity iron, metal powders, zircon, and rutile; thermal and coking coal, and uranium; and iron ore and salt. It primarily operates in Australia, North America, South America, Asia, Europe, and southern Africa. The company was founded in 1873 and is headquartered in London, the United Kingdom. Rio Tinto plc is a subsidiary of Rio Tinto Group.

Advisors' Opinion:

• [By Brian Pacampara]

  So what: Unfortunately for Turquoise, and parent company Rio Tinto (NYSE: RIO  ) , the Mongolian parliament is currently in summer recess and the approval process will take plenty of time even after that, so all work on the underground development will be put on hold indefinitely. Given that Oyu Tolgoi is Turquoise's primary operation -- total capital invested in the mine to March 31 was about $6 billion -- the delay represents a huge setback for management and raises plenty of uncertainty for shareholders. �

• [By Paul Ausick]

  The warehouses have been getting heat for more than two years for long delays in shipping aluminum to buyers. The Coca-Cola Co. (NYSE: KO) filed a complaint with the LME in 2011 alleging that Metro brought aluminum into its warehouses and then refused to let the stuff leave, which caused delays in delivery, higher storage charges and higher prices for aluminum. Coke claimed that Goldman/Metro paid cash incentives to producers like Alcoa Inc. (NYSE: AA) and Rio Tinto PLC (NYSE: RIO) to store aluminum in Metro’s warehouses during the 2008 and 2009 recession.

• [By Paul Ausick]

  Big mining firms wrote down more than $50 billion in assets in 2012, led by Rio Tinto PLC (NYSE: RIO), which wrote down $14 billion and fired its CEO. Mergers and acquisitions in the mining business totaled more than $1 trillion in the past decade, and the 5% write-down is really not so bad, all things considered.

• [By Tony Reading]

  In this series I'm subjecting companies to scrutiny under five headings: prospects, performance, management, safety and valuation. How does Rio Tinto (LSE: RIO) (NYSE: RIO) measure up?