Aggression was once a huge positive for SandRidge Energy, Inc. (SD), but it seems that this has started to backfire for the company. SandRidge Energy continues to grow through its mid-continent focus, but its stock is being held back by what many investors are viewing as an overly optimistic goal sheet compared to several months ago. Its three major priorities are to bring EBITDA to $2 billion or above, fund its expenditures entirely within cash flow, and improve its credit standings overall. These are strong goals, but SandRidge intends to accomplish all three within the next three years. This has its followers wondering whether these will come at the expense of growth, or become missed targets, in which case the company’s stock could sink.

Thanks to an August bond offering, SandRidge fully funded its 2012 spending. However, its 2013 program will only be funded by taking on further debt written into its plan after exhausting its anticipated cash flow. Although substantially less leveraged than it was even two quarters ago, when its debt stood as high as 4.3 times EBITDA and uncomfortably close to competitor Chesapeake Energy Corporation‘s (CHK), its pro forma debt for the second quarter of 2012 was 2.9 times EBITDA. This is just low enough to avoid scaring off investors in large numbers, but high enough to be a concern. Additionally, for the current forecast, SandRidge intends to keep its leverage around 3 times EBITDA, meaning substantial relief is far in the future.

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Is Ford (F) a bargain or a total lemon to stay away from? On the plus side, Ford’s earnings per share look good overall compared to Toyota (TM), Tata Motors (TTM), or even General Motors (GM). Ford currently has EPS of $4.40, with Toyota at $4.67, Tata Motors at $4.06, and GM at $2.81.

Looking at share price, some people think Ford is a real bargain, but the charts show a different story. The company suffered serious losses over the summer, and its share value has never really recovered. Ford’s share value sank, even though its sales increased by 13% in the U.S. in August. Ford has delivered some bestselling models, including the Escape SUV, the Focus compact, and the Fusion sedan. News reports indicate that sales for the new Escape increased by 37%, and Fusion sales increased by 21%.

The problem is that Ford’s success in its home market is not being duplicated overseas. The biggest problem for Ford is Europe, where its sales are now in free fall because of aggressive competition and a lousy economy. Ford’s European business reported a $404 million pretax operating loss in the second quarter of 2012. That is more than double the loss for the same period last year. Ford admitted that it lost $1,125 per car it made in Europe in the last year, and that its losses on the continent for this year might exceed $1 billion.

What this seems to indicate is that for every dollar it makes in the U.S., it loses in Europe. To continue reading, click here.

Developments made in medical science are coming at a faster pace in recent times. For patients, this is very beneficial, as a cure for thus far untreatable ailments may be close at hand, potentially saving thousands of lives. At the same time, this could provide a huge opportunity for investors. Which companies have the biggest potential to leap on new drug approvals, and what potential investment opportunities are out there?

GlaxoSmithKline (GSK) and Theravance (THRX) recently completed a phase 3 program for LAMA/LABA (UMEC/VI), which is used to treat chronic obstructive pulmonary disease (COPD). GlaxoSmithKline is on schedule to apply for regulatory approval for LAMA/LABA by 2013. If LAMA/LABA is approved, it will replace Advair, GlaxoSmithKline’s blockbuster drug, which brought in $8.1 billion in revenue in 2011. With total revenue of $20.02 billion in the second quarter, and total cash of $12.23 billion, GlaxoSmithKline is in a good position to push for approval of this drug. This could present a lucrative buying opportunity for investors. We will have to wait and see if LAMA/LABA is approved, but investors should watch closely for any new developments and buy opportunities.

Bapineuzumab, made by Johnson & Johnson (JNJ) and Pfizer (PFE), is now showing new promise. The experimental drug had previously failed to halt mental decline in Alzheimer’s patients. But new results show the drug might work if given earlier on, before most of the damage and memory loss has occurred, which may not be possible to reverse. Dementia is a global condition, affecting nearly 35 million people worldwide. To continue reading, click here.

As the auto industry has been booming, some investors have been disappointed that General Motors (GM) has not been making as strong of gains as other companies. Its new money-back, no-haggle-price promotion is an attempt to attract more customers and gain market share, but in comparison to promotions involving Chrysler, Nissan, Honda (HMC), Toyota (TM), Ford (F) and even eBay (EBAY), this does not seem like such a big deal. I think the General Motors promotion has received too much hype and will ultimately have no significant impact on the company. Due to its low price, I suggest watching for other developments, but I would not recommend this stock quite yet.

General Motors is currently trading around $21, which is at the low end of its 52-week range of $19 to $31.30. It has a market cap of $31.11 billion and a trailing P/E of 5.98. GM’s revenue and gross profit numbers are up from this point last year, though perhaps not as much as investors would like.

Other companies have been passing by General Motors this year, as auto sales grew by 15% industry-wide, but sales increased by just over 6% for General Motors’ Chevrolet brand. As a result, General Motors is offering a 60-day money-back promotion, where customers will be able to return unwanted new Chevrolet, GMC, Buick, and Cadillac vehicles within 60 days of their purchase. The requirements are quite reasonable, furthermore, as the vehicle must be undamaged, it must have less than 4,000 miles, and the customer must be up to date on payments. To continue reading, click here.

Something very interesting is happening in the metals markets these days. Copper prices are up, and the demand for the metal is high despite a dismal global economy. Copper was actually trading at $7,815 a metric ton for three-month contracts on the London Metals Exchange on July 3. The situation was even better in Shanghai, where an October copper contract on the Shanghai Futures exchange was trading at 56,310 yuan, or $8,900 a metric ton, according to Reuters. Reuters speculated that the increased demand was created by an increase in the Chinese Purchasing Managers Index, which expanded at its fastest pace in June. In this article, I will look at how this development could impact copper miners Freeport-McMoRan (FCX), Southern Copper (SCCO), Newmont Mining (NEM), BHP Billiton (BHP), Rio Tinto (RIO), Anglo American (AAUKF.PK), and Barrick Gold (ABX).

Freeport’s stock went up by 3.9% on July 3 and it is easy to see why. The company is in a perfect position to meet China’s increased demand for copper with its Grasberg Mine in Indonesia. The reason for this is obvious the Grasberg mine is located in New Guinea, which means a shorter voyage to China. That gives Freeport an edge over competitors like Southern Copper that have to ship copper half way around the world from Chile and Peru. Even if Freeport has to pay higher excise taxes to the Indonesian government it can still make up profits with lower shipping costs. Therefore Freeport should be one of the first companies to profit from higher copper prices because of its proximity to the biggest copper consumer China.To continue reading, click here.

Ford (F)seems to be having a very good year despite a low stock price. Not only was its F-Series pickup truck the best-selling vehicle in America for the third decade in a row, sales for the F-Series increased by 14% in the last year.

The figures seem to indicate that Ford has a moat around it in the pickup truck business. Its closest competitor in pickups is General Motors (GM), which sold 194,058 of its Silverado pickups in the last year. Yet Ford was able to sell 310,141 F-Series in the same period. Sales figures for Chrysler’s Dodge Ram pickup were less than half of those for Ford. Only 138,351 Rams were sold in the last year.

The sales figures for the F-Series were not the only good news for Ford in June. Its Claycomo plant in Kansas City was the top producing U.S. auto factory in 2011. The Kansas City Business Journal reported that Claycomo produced 460,338 vehicles in 2011, the highest output of any U.S. auto factory.

Those figures and the F-Series sales prove that Ford is an extremely productive company that knows how to market. So it would seem to be a growth stock, right? It has high production and cash flow from sales. Pickup truck sales in particular would seem to be a cash cow for Ford.

Why is Ford’s Share Price so Low?

Ford seems to own the pickup truck business, but its stock price was still under $10 a share on July 9, 2012. To continue reading, click here.

In recent remarks, David O’Reilly, CEO and chairman of Chevron (CVX) until January 2011 and now chairman of the National Petroleum Council, indicated he is betting against U.S. oil independence based on shale extraction. O’Reilly said, “I do believe that we will still be importing oil 20 to 25 years from now, and that is one area of vulnerability we have in our supply system,” citing weakness in the current infrastructure and a lack of economic scale. O’Reilly’s view partly explains why Chevron is moving slowly on entering unconventional plays in the lower 48 states, which I believe is ultimately to Chevron’s detriment.

Chevron’s reluctance to participate in shale plays puts it behind all of its U.S. based competitors. Marathon Oil (MRO) is betting heavily on shale to fuel its growth. Exxon Mobil (XOM) is now the largest producer of natural gas in the U.S. following its acquisition of XTO Energy in 2009. It was not until February 2011 that Chevron acquired Atlas Energy to obtain its first foothold on U.S. shale gas, though the deal was nowhere near as large or as successful as Exxon Mobil’s acquisition of XTO. As of the end of 2011, Chevron owned 700,000 acres in the Marcellus and 600,000 acres in the Utica, but is apparently not very excited about the prospects here as these plays are not even mentioned in the company’s first quarter earnings presentation.

If Not Drilling in the U.S., then Where?

Chevron’s strongest area of focus remains its natural gas projects, primarily centered in Australia, where it operates the Gorgon and Wheatstone projects, among others. To continue reading, click here.

One of the leading independent energy companies leading the way in the exploration and development of natural gas liquids (NGL) is Devon (DVN). While other energy companies are searching out alternative resources because of the downward pricing of natural gas, Devon is going for the liquid.

This is a smart move especially when analysts are expecting this company’s growth, due to NGL, to be close to 13% this year. Of course NGL is not Devon’s only energy resource to bring to market. The company is expecting growth of up to 24% from its oil plays. In the most recent quarter, the company reported record production of 694,000 barrels of oil equivalent (BOE) per day in the most recent quarter, up 10% from the first quarter of 2011. Devon is a company that I believe investors should not just keep a keen eye on, but own the company while watching its phenomenal growth.

Two of Devon’s competitors, Apache (APA) and Anadarko (APC) are in for a surprise when Devon’s plans finally begin to take hold. Lesser competitors such as Cabot Oil & Gas (COG), Comstock Resources (CRK), and Canadian Natural Resources (CNQ) will also need to be on their toes as Devon begins taking action on its lofty goals. The company has set a goal to spend $1 billion more than originally planned for oil exploration, or close to $6.5 billion, with expectations of increasing its oil and gas production by 6% to 8% on an annual basis over the next five years.To continue reading, click here.

General Motors’ (GM) brands include Buick Chevrolet, GMC, Opel, Cadillac, Daewoo, Holden and Vauxhall. Its total revenue accrued from vehicle sales worldwide amounted to nine million during the year ended December 31, 2011. According to the company’s latest earning figures, GM surprised the market with a sales growth of 10.8% and an income growth of 62.5%. As an organization, General Motors is making progress in North America and this is attributed to a rise in fuel prices which has inspired replacement of aging motor vehicles with modern fuel efficient versions. However, many competitors are also taking advantage of that growth through aggressive discounts and other incentives. The company enjoys robust sales and annual revenue of about $151.84 billion, which surpasses most of its competitors. It also has one of the best operating margins of about 5.2%, amongst the large companies in this industry. The net income of the company has also achieved a turnaround after the reverses during the recession of 2008 and currently stands at about $5.44 billion. One of the factors that favors General Motors in this sector is its low price to earnings multiples. With a P/E ratio of about 6.62, the company betters the Industries’ average of 12.61 by quite a margin. It also has one of the lowest price/ earnings to growth ratio of 0.48, thus being an attractive growth story for long-term investors. Further within the industry, General Motors is one of the organizations which has shown positive growth in its business over the last one year or so, wherein other major competitors have failed.To continue reading, click here.

Alcoa (AA) is the third largest aluminum producer in the world and the biggest based in the United States. Recently, it reported a surprise net income for the first quarter of $0.09 per share versus an expected loss by its stock followers. Alcoa shares rose 6% on the news but I believe that the stock should go up even more in the next couple of years. The main reason is that Alcoa is reducing its capacity and is also undergoing a cost restructuring program which should reduce its aluminum producing costs by 10% through 2015 and the company also has a number of segments which are more profitable than its main aluminum segment. Second, the shares are trading below their price to earnings range and earnings should improve substantially in the next couple of years which should drive the share price up after a 44% decline in 2011 and a riseof around 7% year-to-date.

Alcoa is the largest domestic aluminum producer with a market capitalization of $10.5 billion, enterprise value of $18 billion, a price to earnings ratio of 18 and an annualized dividend yield of 1.2%. The company is trading near its 52-week low of $8.45 and has a 5 year trading range between $5 and $48 per share. Historically, Alcoa stock has been trading at an average of between 16 and 23 and its current price to earnings ratio is at the lower end of this range at around 18. I believe that due to efficiencies, increased demand due to higher economic activities, and a rising price of aluminum, Alcoa will earn $0.60 this year and $0.95 per share next year. Assuming the aluminum price increases by 25% from the current price of about $2,000 per tone, to $2,500 per tone, which is roughly the average price for the past five years, Alcoa should be able to earn $1 per share in 2013 and its current price implies a price to earnings ratio for 2013 of 10 or two times lower than the average price to earnings ratio of 20 which the company has been able to maintain in the past decade. To continue reading, click here.

Recently, Exxon Mobil (XOM) announced its intentions to partner with ConocoPhillips (COP), BP (BP) and the Alaska Pipeline Project to work toward commercializing the North Slope natural gas resources in Alaska. There is a huge amount of unutilized natural gas resources in Alaska, and Exxon is a forerunner in the move to find new energy sources such as this in order to meet the ever rising demand for energy.

A development that may work in favor of Exxon is the recent decision of the Russian government to cancel the export tax for new shelf projects. This will directly benefit Exxon’s activities with Rosneft in the Arctic region by boosting the profits earned from this endeavor.

A dispute that Exxon has somehow managed to get into the middle of is between the Baghdad and Kurdistan governments. The underlying problem here is that Kurdistan is a semi-autonomous state that has been in conflict with Baghdad regarding oil rights in their respective regions for a long time. Recently, the government of Baghdad went as far to declare any foreign contracts made with Kurdistan regarding oil will be deemed illegal. As Exxon has existing contracts with Kurdistan in this regard, tensions flared with Baghdad vowing to put an end to all such agreements. The long-term ramifications of this have caused unrest in the minds of many stockholders, especially as the area continues to be a volatile one for American investment.

More recent news has revealed that Baghdad may be willing to respect these existing agreements to a certain degree. To continue reading, click here.