Best Defensive Stocks To Invest In 2014

The second quarter saw a sharp spike in interest rates, which caused havoc in the mortgage REIT sector. As inevitable book value losses became the norm, it became a question of which mREIT could get away with the least damage.�

Hatteras Financial (NYSE: HTS  ) �was one of the worst performers during the period despite following a relatively conservative strategy of investing mostly in adjustable-rate mortgage (ARM) mortgage-backed securities, as opposed to fixed-rate 30-year MBSes that can often carry a larger interest rate risk.�

How bad was it?
Hatteras reported EPS of $0.66 for the quarter, a rise of $0.04 per share over the previous quarter. The company's net interest spread dropped by 18 basis points from Q1 to 0.93% as its Constant Prepayment Rate (CPR) jumped to 20.8% -- the highest in almost two years. However, the real shock came in the form of a steep drop in book value, which fell to $22.18 from $28.18 in Q1 -- a drop of 21%.

This is bad by any standard, but what makes it even worse is that Hatteras is known to have a relatively defensive portfolio when compared to its fixed-rate focused peers; at the end of the second quarter, ARMs comprised almost 89% of Hatteras' MBS portfolio. Capstead Mortgage (NYSE: CMO  ) , a mortgage REIT that follows a similar strategy of investing in ARMs, reported that its book value per share declined by just 3.8% because of market price movements.

Top 5 Electric Utility Stocks To Own For 2015: Alamos Gold Inc (AGI)

Alamos Gold Inc. is engaged in the acquisition, exploration, development and extraction of precious metals in Mexico and Turkey. It owns and operates the Mulatos mine (Mulatos or the Mine) and holds the mineral rights to the Salamandra group of concessions in the State of Sonora, Mexico. The Mulatos mine is approximately 220 kilometers by air east of the City of Hermosillo. In addition, the Company owns the Agi Dagi and Kirazli advanced-stage gold development projects located in the Biga Peninsula of northwestern Turkey. Agi Dagi is located about 50 kilometers southeast of Canakkale, and Kirazli is located approximately 25 kilometers northwest of Agi Dagi. In January 2013, it acquired 14.3% interest of Aurizon Mines Ltd. (Aurizon). In August 2013, the Company acquired Esperanza Resources Corp. In September 2013, the Company announced that it has completed the acquisition of Orsa Ventures Corp. Advisors' Opinion:

• [By Jon C. Ogg]

  Alamos�Gold Inc. (NYSE: AGI) was reinstated as Buy with a target price of $21 in Canada, which would translate to closer to $20 in U.S. share prices (versus $16.33 current), at BofA/Merrill Lynch.

Best Defensive Stocks To Invest In 2014: Fortune Brands Home & Security Inc (FBHS)

Fortune Brands Home & Security, Inc., incorporated on June 9, 1988, is engaged in home and security products with companies focused on the design, manufacture and sale of products in Kitchen & Bath Cabinetry, Plumbing & Accessories, advanced material windows & entry door Systems, and security and storage products. The Company operates through four business segments: Kitchen & Bath Cabinetry, Plumbing & Accessories, Advanced Material Windows & Door Systems, and Security & Storage. The Kitchen & Bath Cabinetry segment manufactures custom, semi-custom, and stock cabinetry for the kitchen, bath, and other areas of the home. Plumbing & Accessories segment manufactures and assembles faucets, accessories, and kitchen sinks. The Advanced Material Windows & Door Systems segment manufactures and sells fiberglass and steel entry door systems. The Security & Storage segment provides locks, safety, and security devices and electronic security products. In June 2013, Fortune Brands Home & Security Inc completed the acquisition of WoodCrafters Home Products.

Kitchen & Bath Cabinetry

The Company�� Kitchen & Bath Cabinetry segment�� products includes brand names, such as Aristokraft, Omega, Kitchen Craft, Schrock, Diamond, HomeCrest, Decora, Kemper, Thomasville and Martha Stewart Living. Principally all of this segment�� sales are in North America. The Company sells directly to kitchen and bath dealers, home centers, wholesalers and builders. During the year ended December 31, 2012, sales to The Home Depot and Lowe's consisted of approximately 32% of net sales of the Kitchen & Bath Cabinetry segment.

The Company competes with Masco and American Woodmark.

Plumbing & Accessories

The Plumbing & Accessories segment manufactures accessories and kitchen sinks in North America, China and India, predominantly under the Moen brand. The sells its Plumbing & Accessories products principally in the United States and Canada. It also sells them in China, India, ! Mexico, South America and Southeast Asia. It sells directly through its own sales force and indirectly through independent manufacturers��representatives, primarily to wholesalers, home centers, mass merchandisers and industrial distributors. During 2012, sales to The Home Depot and Lowe's consisted of approximately 29% of net sales of the Plumbing & Accessories segment.

The Company competes with Delta, Kohler, Pfister and American Standard.

Advanced Material Windows & Door Systems

The Company�� Advanced Material Windows & Door Systems segment manufactures fiberglass and steel entry door systems, vinyl-framed window and patio doors, and urethane millwork product lines. Therma-Tru products include fiberglass and steel residential entry door and patio door systems, primarily for sale in the United States and Canada. Simonton brand of vinyl-framed windows and patio doors are mainly manufactured and sold in the United States. The segment�� principal customers are home centers, millwork building products and wholesale distributors, and specialty dealers that provide products to the residential new construction market, as well as to the remodeling and renovation markets. During 2012, sales to The Home Depot and Lowe�� comprised approximately 17% of net sales of the Advanced Material Windows & Door Systems segment.

The Company competes with Masonite, JELD-WEN and Plastpro, Silverline, Atrium and Milgard.

Security & Storage

The Company�� Security & Storage segment consists of locks, safety and security devices, and electronic security products manufactured, sourced and distributed by Master Lock and tool storage and garage organization products manufactured by Waterloo. The segment sells products principally in the United States Canada, Europe, Australia and Central America. Master Lock manufactures and sells key-controlled and combination padlocks, bicycle and cable locks, built-in locker locks, door hardware, automotive, t! railer an! d towing locks, and other specialty safety and security devices. Master Lock sells products for consumer use to hardware and other retail outlets, wholesale distributors and home centers, industrial and institutional users, original equipment manufacturers and retail outlets. During 2012, Security & Storage sales to international markets comprised approximately 20% of sales.

Waterloo manufactures tool storage and garage organization products, steel toolboxes, tool chests, workbenches and related products. Waterloo primarily sells to Sears retail stores. In addition, Waterloo sells under the Waterloo and private-label brand names to specialty industrial and automotive dealers, mass merchandisers, home centers and hardware stores.

The Company competes with Asian importers, Homak, Stanley Black & Decker, Snap-On, Kennedy, Stack-On and others in the metal storage segment and with Stanley Black & Decker, Keter, Newell Rubbermaid

Advisors' Opinion:

• [By Holly LaFon]

  Despite economic and political turmoil, equity markets performed well across the board in September of 2013 and over the trailing twelve months. The September gains reversed losses in August and also resulted in positive overall quarterly performance with a number of major indexes moving further into record territory. After disturbing the markets in May and June with comments that they may taper Quantitative Easing (QE), the Fed surprised investors with an announcement that it would not reduce its asset purchases in the near-term. The announcement removed fears that a continued rise in interest rates may stall the economic recovery, as seen by the market's negative reaction to the sharp rise in the 10-year Treasury rate in August of 2013. Investors were also comforted by improving fundamentals both domestically and abroad. The Eurozone may finally be emerging from its prolonged recession and a number of economic reports in the U.S. continue to show progress. Specifically, initial unemployment claims dropped to a multiyear low early in September and the housing market continued to improve, as evidenced by prices rising 12.4 percent year-over year, which along with the stock market's strength, has created a positive wealth effect for consumers. In response to this general economic improvement, consumer confidence increased at the end of September, and the index of leading economic indicators ticked up as well, suggesting that, absent the effects of politics, the recovery in the real economy was continuing. Our portfolios that focus on corporate restructuring (Keeley Small Cap Value, Keeley Small-Mid Cap Value, Keeley Mid Cap Value, Keeley All Cap Value, and Keeley Alternative Value) have all experienced a productive investment cycle with respect to their opportunity sets, and many of our holdings have posted impressive results in recent quarters. Although we acknowledge an improving economy has boosted the outlook for our more cyclical holdings, our research has gu

• [By Marc Bastow]

  Home security products distributor Fortune Brands Home and Security (FBHS) raised its quarterly dividend 20% to 12 cents per share, payable on March 19 to shareholders of record as of Feb. 28.
  FBHS Dividend Yield: 1.13%

• [By Travis Hoium]

  What: Shares of Fortune Brands Home & Security (NYSE: FBHS  ) jumped as much as 11% in early trading after the company released earnings.

• [By John Udovich]

  After the bedroom, the kitchen is probably the place where we spend the most time awake in our homes with small cap kitchen stocks Caesarstone Sdot-Yam Ltd (NASDAQ: CSTE) and American Woodmark Corporation (NASDAQ: AMWD) along with diversified midcap Fortune Brands Home & Security Inc (NYSE: FBHS) all putting in a good performance. After all, any sort of housing recovery with more new homes being sold will�help kitchen stocks and so will increased sales of older or foreclosed homes that need to have their kitchens remodeled. But which is the better kitchen stock for investors? Here is�closer look at all three:

Best Defensive Stocks To Invest In 2014: MasTec Inc. (MTZ)

MasTec, Inc., an infrastructure construction company, engages in the engineering, building, installation, maintenance, and upgrade of energy, utility, and communications infrastructure primarily in North America. The company builds natural gas, crude oil, and refined product transport pipelines; underground and overhead distribution systems, including trenches, conduits, and cable and power lines, which provide wireless and wireline communications; electrical power generation, transmission, and distribution systems; renewable energy infrastructure comprising wind and solar farms; and compressor and pump stations, and treatment and heavy industrial plants. It also installs electrical and other energy distribution and transmission systems, power generation facilities, buried and aerial fiber optic cables, coaxial cables, copper lines, and satellite dishes in various environments. In addition, the company provides maintenance and upgrade support services, such as the maintena nce of distribution facilities; and networks and infrastructure, including natural gas and petroleum pipelines, wireless, power generation, and electrical distribution and transmission infrastructure, as well as routine replacements and upgrades, and overhauls. Further, it offers emergency services for accidents or storm damage. The company�s customers include public and private energy providers, pipeline operators, wireless service providers, satellite and broadband operators, local and long distance carriers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

Advisors' Opinion:

• [By Rich Duprey]

  MasTec (NYSE: MTZ  ) is well-known for being�a leading infrastructure construction company across various industries, so its announcement this morning that it is acquiring an�oil and gas pipeline and facility construction services company should not come as a surprise.

• [By Michael Lewis]

  For a quick comparison, take a look at U.S.-based Mastec (NYSE: MTZ  ) , which trades at just under 13.75 times forward earnings yet holds a more conservative balance sheet and is a good bit larger at a market cap of $2.34 billion. While Mastec is building out its operations in Canada, Empresas offers potential outperformance by virtue of its market dominant position in Mexico.

• [By James E. Brumley]

  Last week, the headlines reporting the U.S. Census Bureau's construction numbers for November were a little alarming. Overall construction spending� fell 03% -- a big deal for this particular industry -- suggesting heavy construction stocks like MasTec, Inc. (NYSE:MTZ) and Granite Construction Inc. (NYSE:GVA) were in big trouble after a lackluster 2014. The headlines were a little (perhaps more than a little) misleading, though.

• [By Aaron Levitt]

  Despite its recent troubles, KBR is still one of the better stocks to buy if you want to play the prospective infrastructure boom.

  MasTec (MTZ)

  While it isn�� as big as KBR or CBI, MasTec (MTZ) is quickly becoming of the best energy stocks to buy. Shares of the construction firm recently hit 10-year highs.

Best Defensive Stocks To Invest In 2014: Samsung Electronics Co Ltd (SSNLF.PK)

Samsung Electronics Co., Ltd. mainly engaged in the production of consumer electronic products. It operates in two divisions: DMC division, which is divided into consumer electronics (CE) and information technology & mobile communications (IM) businesses, as well as DS division, which is divided into semiconductor and liquid crystal display (LCD) businesses. Its CE business engages in the production of color televisions (CTVs), monitors, air conditioners, refrigerators and others. Its IM business engages in the production of printers, computers, handhold phones (HHPs) such as feature phones, smart phones and others, and network systems, among others. Its semiconductor business engages in the production of semiconductors, such as memories, system large scale integrated circuits (LSIs) and others. Its LCD business engages in the production of thin film transistor (TFT) LCDs and organic light-emitting diodes (OLEDs), among others.

Advisors' Opinion:

• [By Charles Santerre]

  If the Lumia 925 and 928 have a derivative design, the same can be said for the complete line of Galaxy Series by Samsung (SSNLF.PK) and iPhones by Apple (AAPL). If there is one quality Nokia is still renowned for, it is for its beautiful and sturdy designs. I have even criticized them in an earlier article entitled Nokia's Challenger Checklist for spending too much on quality in their handsets while it does not seem to be such a high priority for their competitors. In any event, the Lumia 925 has not yet been released, so it's too soon to obtain real feedback. The 928 has only been available for three weeks now. To date the average rating on Amazon is 4.5 stars out of 5.

• [By Ashraf Eassa]

  Next, it is interesting to note that Samsung (SSNLF.PK) recently announced a device called the "Galaxy Tab 3 Kids", which is an Android based competitor to the LeapPad product line in the sense that it comes layered with a UI specifically targeted for children much in the same way that the LeapPad Ultra is. Of course, LeapFrog will (rightly) argue that its application ecosystem is more robust on the education side of things, but this is the sort of disruption - particularly by general purpose hardware - that can eventually spell disaster in the long run, particularly as a player like Samsung (which often in-sources many of its own parts) can drive prices down while maintaining reasonable margins and forcing out the smaller more niche players in a given space.

• [By George Kesarios]

  So in the prepaid market, surprisingly enough, Apple has actually scored points, despite the fact that it's a high-end high priced device maker. LG however is probably the biggest winner, because NPD tells us it doubled its market share, while Samsung (SSNLF.PK) has remained in the number one position having retained its market share. The biggest surprise of all however is that Nokia (NOK) is not on this list.