Top 5 Quality Stocks To Own Right Now

Yes, again, as General Motors (GM) has announced more recalls. RBC Capital Markets’ Joseph Spak and team explain the impact:

AP

This morning, General Motors announced five new safety recalls which covers ~2.7mm vehicles in the US. The company expects to take a charge of $200mm (~$0.07/share) in 2Q14 primarily for the cost of recall-related repairs from these actions. This is separate, and in addition to, the previously announced and well publicized recalls (primarily ignition switch) that resulted in a $1.3bn 1Q14 charge…

Though the charge (similar to 1Q14 $1.3bn charge) isn�� recurring and thus results won�� be representative of ��ore underlying profitability�� we believe all OEMs [auto manufacturers like Ford Motor (F), General Motors and Toyota Motor�(TM). ed.] should expect a more intense focus on quality and recalls (perhaps�General Motors more than most). So even if a recall charge can�� be considered part of the run-rate, in our view, it seems likely that warranty accruals may have to be raised negatively impacting future margins. As far as the stock, we believe General Motors was gaining some interest off of very low sentiment. This headline won�� help.�General Motors is perhaps even more of a 2015 story at this point (with some easier comps now as well).

Top 5 Performing Companies To Watch For 2015: QUALCOMM Incorporated(QCOM)

QUALCOMM Incorporated engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. The company operates in four segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), Qualcomm Wireless and Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies code division multiple access (CDMA)-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products. The QTL segment grants licenses to use portions of its intellectual property portfolio comprising patent rights useful in the manufacture and sale of wireless products, such as products implementing cdmaOne, CDMA2000, WCDMA, CDMA TDD, GSM/GPRS/EDGE, and/or OFDMA standards and their derivatives The QWI segment consists of Qualcomm Internet Services that provides content enablement services for the wireless industry and pu sh-to-talk and other products and services for wireless network operators; Qualcomm Government Technologies, which offers development, hardware, and analytical services to the United States government agencies involving wireless communications technologies; Qualcomm Enterprise Services that provides satellite and terrestrial-based two-way data messaging, position reporting, wireless application services, and managed data services to transportation and logistics companies and other enterprise companies; and Firethorn, which builds and manages software applications that enable mobile commerce services. The QSI segment makes strategic investments to support the worldwide adoption of CDMA- and OFDMA-based technologies and services. QUALCOMM Incorporated primarily operates in China, South Korea, Taiwan, Japan, and the United States. The company was founded in 1985 and is based in San Diego, California.

Advisors' Opinion:

• [By Eric Bleeker, CFA, Lyons George, and Alison Southwick]

  Inside China, a crash below the $50 barrier has unleashed a massive tablet boom. How are companies doing this? For one, local processor companies have created "good enough" designs that sell for a fraction of the price of high-end designs from�NVIDIA� (NASDAQ: NVDA  ) and�Qualcomm� (NASDAQ: QCOM  ) . On its budget-priced Slate 7, HP used a design from Chinese chip designer Rockchip. When HP tried to sell its TouchPad tablet for prices starting at $500 in 2011, it used a Qualcomm design. Perversely, low-cost tablets are also cutting costs by salvaging memory from PCs.�

Top 5 Quality Stocks To Own Right Now: Genel Energy PLC (GEGYF.PK)

Genel Energy plc, formerly Vallares PLC, is an exploration and production company. It is an independent oil producer in the Kurdistan Region of Iraq. The Group has two reportable business segments, which are its oil and gas exploration and production business in the KRI and its oil and gas exploration business in Africa. The Company had operational bases in Ankara, Turkey; in Taq Taq, Erbil and Suleimaniah in the Kurdistan Region, and in London. The Company�� oil producing fields of Taq Taq (in which it held a 44% interest) and Tawke (25% interest) had estimated gross proven and probable reserves of 1.2 billion barrels of oil and proven, probable and possible reserves of 1.9 billion barrels of oil. The Company�� subsidiaries include: Genel Energy Holding Company Ltd, Genel Energy Somaliland Limited, A&T Petroleum Limited, Genel Energy UK Services Limited, Genel Energy Netherlands Holding 2 B.V. and Genel Energy Somaliland Limited. Advisors' Opinion:

• [By Street Smart Investor]

  DNO International is an independent E&P company, geographically focused on the Middle East and North Africa with operations in Yemen, the Kurdistan region of Iraq, Tunisia, Oman, Ras Al Khaimah and Somaliland. The company's asset portfolio currently stands at 20 assets in six countries. For the year ended December 2012, DNO International has proven and probable reserves of 520.3 MMboe with 90% of the reserves in the Kurdistan region of Iraq. The company's reserves in Kurdistan come from the Tawke oil block, which is among the largest oil blocks in Kurdistan. DNO International has a 55% stake in the Tawke block with Genel Energy PLC (GEGYF.PK) holding a 25% stake. The remaining 20% stake is held by the Kurdistan Regional Government. For the first half of 2013, DNO International had a production rate of 33,917 boepd, which includes production from Kurdistan, Oman and Yemen.

Top 5 Quality Stocks To Own Right Now: Abraxas Petroleum Corp (AXAS)

Abraxas Petroleum Corporation is an independent energy company primarily engaged in the acquisition, exploitation, development and production of oil and gas in the United States and Canada. As of December 31, 2011, the Company�� estimated net proved reserves were 29.0 million barrels of oil equivalent (MMBoe), (including reserves attributable to its 34.7% equity interest in the proved reserves of Blue Eagle), of which 53% were classified as proved developed, 54% were oil and natural gas liquids (NGL��) and 94% by PV-10 were operated. Its daily net production during the year ended December 31, 2011, was 3,484 barrels of oil equivalent per day, of which 45% was oil or liquids. Its oil and gas assets are located in four operating regions in the United States, the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast, and in the province of Alberta, Canada.

The Company�� properties in the Rocky Mountain region are located in the Williston Basin of North Dakota and Montana and in the Green River, Powder River and Unita Basins of Wyoming and Utah. In this region, its wells produce oil and gas from various reservoirs, including the Niobrara, Turner, Bakken and Three Forks formations. Well depths range from 7,000 feet down to 14,000 feet. The Company�� properties in the Mid-Continent region are primarily located in the Arkoma Basin and principally produce gas from the Hartshorne coals at 3,000 feet. Its properties in the Permian Basin region are primarily located in two sub-basins, the Delaware Basin and the Eastern Shelf. In the Delaware Basin, its wells are located in Pecos, Reeves, and Ward Counties, Texas and produce oil and gas from multiple stacked formations from the Bell Canyon at 5,000 feet down to the Ellenburger at 16,000 feet.

In the Eastern Shelf, its wells are principally located in Coke, Scurry, Midland, Mitchell and Nolan Counties, Texas and produce oil and gas from the Strawn Reef formation at 5,000 to 7,500 feet and oil from the shallower Clea! rfork formation at depths ranging from 2,300 to 3,300 feet. The Company�� properties in the onshore Gulf Coast region are located along the Edwards trend in DeWitt and Lavaca Counties, Texas and in the Portilla field in San Patricio County, Texas. In the Edwards trend, its wells produce gas from the Edwards formation at a depth of 14,000 feet and in the Portilla field, its wells produce oil and gas from the Frio sands and the deeper Vicksburg from depths of approximately 7,000 to 9,000 feet. In addition, the Company also owns a 34.7% equity interest in a joint venture targeting the Eagle Ford in South Texas. Its properties in the province of Alberta, Canada are located in the Pekisko fairway and the Nordegg/Tomahawk area of Central Alberta.

As of December 31, 2011, the Company leased approximately 20,835 net acres, primarily in counties located on the Nesson Anticline and in areas west, including Rough Rider and Lewis & Clark in North Dakota and in Sheridan County, Montana, which are prospective for the Bakken and Three Forks formations. During the year ended December 31, 2011, the Company drilled two operated wells and participated in an additional 19 gross (1.0 net) non-operated wells. In July 2011, Abraxas purchased a used Oilwell 2000 horsepower diesel electric drilling rig. In August 2010, the Company formed a joint venture, Blue Eagle, with Rock Oil to develop its acreage in the Eagle Ford Shale play. As of December 31, 2011, the Company owned a 34.7% interest in Blue Eagle. During 2011, Blue Eagle drilled, completed or participated in three gross (2.4 net) wells and added approximately 3,800 net acres to its holdings, principally in McMullen County, Texas.

As of December 31, 2011, the Company leased a total of approximately 20,720 gross (17,800 net) acres in the southern Powder River Basin, of which 17,800 gross (15,700 net) acres were located in the Brooks Draw field of Converse and Niobrara Counties, Wyoming. In addition, it owns approximately 2,100 net acres in sout! hern Camp! bell County, Wyoming which are held by production and are near the Crossbow field operated by EOG Resources, Inc. and other recent horizontal activity. As of December 31, 2011, the Company leased 6,880 net acres in western Alberta. In 2011, it drilled or completed six gross (6 net) wells in the Twining area. In the emerging southern Alberta Basin Bakken play of Toole and Glacier Counties, Montana, the Company leased approximately 10,000 gross/net acres under long-term leases or direct mineral ownership. As of December 31, 2011, it leased approximately 5,600 gross/net acres in Nolan County, Texas. In 2011, the Company drilled three wells in the Spires Ranch offsetting the prolific Nena Lucia field.

Advisors' Opinion:

• [By Ben Levisohn]

  Penn Virginia has gained 6.9% to $7.15 at 11:56 p.m. today, while Sanchez Energy (SN) has advanced 5.2% to $29.10, Abraxas Petroleum (AXAS) has risen 2.4% to $2.97 and Gulfport Energy (GPOR) is up 1.3% at $67.31.

• [By Monica Gerson]

  Abraxas Petroleum (NASDAQ: AXAS) is estimated to post its Q4 earnings at $0.04 per share on revenue of $23.05 million.

  Broadwind Energy (NASDAQ: BWEN) is projected to post a Q4 loss at $0.19 per share on revenue of $56.54 million.

Top 5 Quality Stocks To Own Right Now: Rowan Companies Inc.(RDC)

Rowan Companies, Inc. provides onshore and offshore oil and gas contract drilling services in the United States and internationally. The company offers its contract drilling services through its fleet of 28 self-elevating mobile offshore drilling platforms and 30 deep-well land drilling rigs. The company was founded in 1923 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Ben Levisohn]

  A bad year for offshore drillers is likely to get worse–and Morgan Stanley says even market favorite Rowan (RDC) could get hit. It recommends yield plays, including Seadrill (SDRL).

• [By Dimitra DeFotis]

  Among energy stocks rising today: Producers of gas and gas liquids were higherm, including Devon (DVN) and�Consol Energy (CNX) rose about 2% each, while drillers�Nabors Industries (NBR) and�Rowan Companies (RDC) jumped more than 3% apiece. Oilfield services names Halliburton (HAL) and Baker Hughes (BHI) each rose nearly 2%.

• [By Ben Levisohn]

  This year started so badly for Seadrill (SDRL), Transocean (RIG) and Rowan (RDC) and other offshore drillers that it shouldn’t come as a surprise that some investors are seeing value in their beaten down shares. The folks at Raymond James, however, see conditions at offshore drillers getting worse before they get better.