First Drive: 2011 Aston Martin V8 Vantage S

Nestled in a secluded valley in the south of Spain is the Ascari Race Resort. Celebrated as one of the world's most beautiful tracks, the private 3.2-mile ribbon of perfectly smooth blacktop challenges drivers with 26 corners, 10-degree climbs and 18-degree banks as it weaves through the mature oak trees that dot the landscape. Named after Alberto Ascari, the first double world Formula 1 champion, the well-manicured decade-old venue is the type of circuit enthusiasts fantasize about.

Our private shuttle takes us through the manned guard gate towards the main clubhouse. As we round the corner, and head down the shallow hill, the sun reflects off something in the distance. Parked in the paddock are a dozen glistening sports cars – some coupes, some roadsters – each still dripping wet from the overnight shower that leaves the air fresh and crisp. The vehicles, the latest offering from Aston Martin, are the enthusiast-targeted Vantage S Coupe and Roadster.

Nine times zones from home with jet lag extinguished by a morning café grande, I figure it is time to get behind the wheel. Only one thing is more enjoyable than driving the new Aston Martin Vantage S through the mountains of Spain – spending a long afternoon with the sports cars on the wide-open Ascari race circuit.

The Aston Martin Vantage secured its position as the automaker's sportiest model when it was introduced at the 2005 Geneva Motor Show for the 2006 model year. Like the DB9, the then-new two-door utilized the now common VH Architecture (the chassis is constructed with extruded and bonded aluminum panels). Today, the platform is also shared with the DBS and Rapide.

The four basic body styles in the Aston Martin lineup have much in common, but the Vantage holds the trump card when it comes to handling. Unlike its architecture-sharing siblings, the Vantage is shorter by a foot and its wheelbase undercuts the others by nearly six inches – the reduction in overall size translates to a lighter curb weight (3,549 pounds Coupe, 3,726 pounds Roadster) and greatly improved handling.

Aston Martin offers its Vantage in a dozen flavors these days, from the entry-level V8 Vantage Coupe ($120,350) to the flagship V12 Vantage Carbon Black ($194,995). Following on the heels of the limited-edition sport-tuned V8 Vantage N420 models, introduced less than a year ago, are two new models both wearing the automakers coveted 'S' badge - the 2011 Vantage S Coupe and 2011 Vantage S Roadster.

2011 Aston Martin V8 Vantage S side view2011 Aston Martin V8 Vantage S front view2011 Aston Martin V8 Vantage S rear view

While their aluminum platforms are virtually identical to the standard coupe and roadster models, the British automaker is targeting driving enthusiasts with these heavily upgraded Vantage S variants. Under the hood of each is a specially-tuned version of the familiar all-alloy 4.7-liter V8. Fitted with an adjustable air intake (engineered to open nearly unrestricted at 3,500 rpm), more aggressive spark mapping and the ability to take advantage of higher octane fuel, the engine delivers 430 horsepower at 7,200 rpm and 361 pound-feet of torque at 5,000 rpm (its power rating tops the N420's output by about ten horsepower). We estimate the Vantage S will hit 60 mph in about 4.5 seconds (Aston Martin lists the maximum speed at 189 mph).

The Vantage S also boasts a new transmission. The six-speed Sportshift gearbox (a single-clutch automated manual transmission) fitted to the standard Vantage models and the N420 has been superseded by Aston Martin's all-new seven-speed Sportshift II. While it remains a single-clutch automated manual transmission (rumor has it a dual-clutch unit won't fit), Sportshift II is 52 pounds lighter than Sportshift I. Plus, it is at least 100 pounds lighter than a dual-clutch transmission, reports Aston. Specifically designed with the performance of the V8 Vantage S in mind, the transmission is engineered to operate automatically in Drive mode, or to be manually commanded via column-mounted magnesium shift paddles (the new transmission is reportedly able to select gears 20 percent faster than the older gearbox, in both modes). The rear-mounted gearbox is also now air-cooled, not oil-cooled like its predecessor, helping to shed an oil pump and other unnecessary ancillaries.

2011 Aston Martin V8 Vantage S engine

The exhaust system is also unique to the V8 Vantage S (it shares some commonality with the aggressive muffler system used on the V12 Vantage). Its overall capacity is larger, and the bypass valves are engineered to open earlier in the rev range to produce a throatier sound and more "crackle on the overrun," says the automaker.

The steering rack has been modified with a quicker ratio (now 15:1, as compared to 17:1 on the standard Vantage models), dropping the number of wheel turns (lock-to-lock) down to just 2.62. The suspension has also been overhauled with retuned passive damper valves, revised rear spring coil rates and revised bump stop rates and lengths.

The braking system delivers more stopping power, thanks to larger 15-inch slotted front rotors with six-piston calipers. While their overall diameter has increased over the standard Vantage, their weight has done just the opposite (credit an innovative two-piece system that uses a lightweight aluminum hub with a durable iron braking surface). The rear 13-inch rotors are cast iron, with four-piston calipers. The braking software has been refined to take advantage of existing brake-related systems (ABS, electronic Brake Force Distribution, Traction Control and Positive Torque Control), and the three-mode Dynamic Stability Control has been specially calibrated for its new enthusiast-tuned role. The Vantage S is also the first Aston Martin to be configured with Hill Start Assist (the brakes are automatically used to hold the vehicle stationary on a steep grade for two seconds, or until the accelerator is pressed).

2011 Aston Martin V8 Vantage S side detail

Visually differentiating the Vantage S from its other siblings, Aston Martin has resculpted the front bumper and added a carbon fiber lower front splitter (its larger intake channels more air to the engine and brakes). There are larger side sills with styling derived from the GT4 race car, and a new carbon-fiber rear diffuser. Lastly, the rear decklid features the slightly raised "flip" shared with the V12 Vantage. All of the design elements contribute to lowering the coefficient of lift and drag, thus increasing high speed stability.

The wheels are also unique to the Vantage S lineup. Standard fitment is 19-inch "V-spoke" cast aluminum alloys, wrapped in Bridgestone Potenza RE050 performance tires (245/40R19 in the front and 285/35R19 in the rear - the rears on the Vantage S are 10 mm wider out back when compared to the standard Vantage). Forged 10-spoke aluminum alloy wheels, saving additional unsprung weight, are optional.

2011 Aston Martin V8 Vantage S exhaust system2011 Aston Martin V8 Vantage S wheel

A glance at the interior reveals that it, too, has its own unique look. The cabin has been upgraded with distinctive three-track stitching on the door panels and seats (Aston Martin says the design element "echoes the gills of a shark"). The steering wheel can be covered in Obsidian Black leather (or Alcantara) with matching or contrasting stitching and there is an option to specify a Piano Black package, complete with a piano black center console, door handle surrounds and handles. The option list for both Vantage S models reads nearly identical to the other Aston Martin siblings, whether one is seeking a 1000-watt Bang & Olufsen BeoSound audio system, satellite radio upgrade or a boot-mounted umbrella. Track junkies overseas will want to opt for the extra-cost carbon-fiber and Kevlar bucket sport seats, with soft leather faces, saving nearly 40 pounds of weight (sadly, the DOT won't certify them for the States).

Aston Martin is offering the 2011 Vantage S in two body styles. The standard V8 Vantage S Coupe (with mandatory Sportshift transmission), starts with a base price of $138,000. The V8 Vantage S Roadster with a power-operated soft top (also only fitted with Sportshift) will set you back $151,000. The pricing puts the two new models comfortably mid-pack in the Vantage lineup. (All pricing includes gas guzzler tax, but exclude the $1,615 fee for delivery and destination.)

2011 Aston Martin V8 Vantage S interior2011 Aston Martin V8 Vantage S interior2011 Aston Martin V8 Vantage S door trim2011 Aston Martin V8 Vantage S instrument panel

By luck of the draw, I'm on the track in the first round. My fortune is short-lived, however, as I quickly realize my dallying in the heated lounge has cost me first choice of vehicles – I'm left holding the glass key to a bright blue right-hand-drive model. The minor annoyance accepted, my six-foot, two-inch frame settles comfortably into the optional sport seats (as mentioned, the nice carbon/Kevlar buckets won't be offered in the States). Strapped in place with the standard three–point belts, I slide the white open-face helmet over my skull. I have plenty of wiggle room.

The new Sportshift II, like its predecessor, doesn't have a traditional PRNDL gate on the lower console. Instead, there are four round buttons ("Sport," "R," "N" and "D") high on the center stack. The Vantage S, like all Aston Martins these days, is started with the signature key held in place for a few seconds. The V8 fires over and settles to a tempered growl. I step on the brake and tap the "D" button, followed immediately by the "Sport" button – it electronically changes transmission maps so the new gearbox will shift more rapidly and hold each gear longer through the counterclockwise sweep of the tachometer. The sport mode also alters the flapper in the exhaust to give it a more aggressive note.

2011 Aston Martin V8 Vantage S on track

With an open track beaconing, and a flagman waving a bandera verde, I bury my right foot on the metal accelerator pedal. There is a very reassuring growl from the ass-end of the coupe as the 4.7-liter forces me back into the seat.

It takes about three full laps of the 3.1-mile circuit before I am comfortable with the layout. There are twenty-six corners, so much of the orientation is spent memorizing entry points (speed will come). With most committed to my internal RAM, I increase my velocity gradually. I immediately find the Vantage S very docile - it is nearly perfectly balanced (49:51 front to rear) and the steering is nicely weighed. I'm pleasantly surprised.

After ten minutes, I'm starting to really enjoy things. The Bridgestone Potenza tires are getting some good heat into them, as are the brakes. I push harder. At about eight-tenths, the Vantage S transforms from being a street car on a track to a showroom-ready racer. The back end starts to break free if power is applied on a lightened rear end (easily corrected with some opposite steering input) and a bit of understeer in the sharper corners becomes an issue. It's time to crank things up.

2011 Aston Martin V8 Vantage S on track

At nine-tenths, I'm grinning ear-to-ear. Diving into the hairpin corners, I use trail braking to help rotate the Vantage S (masking much of the understeer). Body roll is minimal, and there is plenty of low-end torque to control rotation and bring the coupe back to speed upon exit. The width of the Vantage requires some caution in the tighter areas (unless you enjoy unsettling impacts with curbs), but nothing overly distracting. That same low stance does contribute to ample, and welcomed, grip on the small and medium-size corners. On the larger sweepers, I find it easiest to keep my foot down until I feel the rear end get light. Then I just hang it there and enjoy the ride.

The Vantage S is truly one of the more enjoyable vehicles I have ever driven on the track. The engine pulls with gusto (it prefers to spin at the top of the tachometer, so be wary of the fuel cutoff), the exhaust sounds tremendous (even through a helmet) and the brakes are more than competent for the job. And one has to mention the chassis – it is a spectacularly stiff platform. Aston Martin takes some abuse for using the same VH architecture on all of its models. I say, who cares? It works.

2011 Aston Martin V8 Vantage S on track2011 Aston Martin V8 Vantage S on track2011 Aston Martin V8 Vantage S on track

Yet hold your applause.

Even with its sexy styling and eight-cylinder rumble, there is something working against the Vantage S. It's the darn brand-spanking new Sportshift II gearbox. While it is admirably lighter and quicker than its predecessor, it still trails the pack when compared against the dual-clutch offerings from the competition (there is no prize for inventing the ultimate VHS machine these days). Even when the transmission is in manual-shift mode, there is an agonizingly noticeable delay between gears. Aston Martin's redesigned single-clutch gearbox may finally be quickest of its kind, but the industry moved on. Several years ago.

With my helmet back in the lounge, I grab the keys to another Vantage S and depart Ascari Circuit on two-lane public roads for the small Spanish villages of Cuevas del Becerro, Setenil de las Bodegas and Arriate. In a relaxed manner, the transmission is left in "D" allowing the electronic nannies do the shifting. Once again, I find myself flustered with the slow gearbox, so it's back to manual mode (thankfully, it only takes a brief tap on the paddleshifter to kill the autobox and the system doesn't revert back to automatic without pressing the "D" button again). With my brain in control, and my fingers doing the work, the Vantage S is a fun scalpel to carve local Spanish roads. I am smiling once again.

2011 Aston Martin V8 Vantage S rear 3/4 view

The British automaker doesn't hesitate when asked to put the crosshairs on the Vantage's direct competition. It understandably comes from the volume-selling rear-engine Porsche 911. Granted, Aston Martin money ($138,000-plus) will buy every single naturally-aspirated 911 in today's lineup, and get you in a standard 911 Turbo – an established segment benchmark.

Aston Martin Vantage S verses Porsche 911 Turbo. That's a tough dilemma.

If asked to choose a weekend track car with those lottery winnings, I'd toss both aside and place my money on the Porsche 911 GT3 RS – that lightweight slot car is a no brainer. But, if asked to pick a sports car to fill the void in the third garage slot, one that would shuttle me to work a couple days a week, get front billing with the valet at the country club, provide me with an engaging driving experience up Mulholland Highway on days off and make me look over my shoulder each time I park, I'd choose the new Aston Martin Vantage S. But, really... can I get one with a manual transmission?

Debt Makes a Comeback: The New Bubble in the Financial Sector

As we signed off on Friday, the Saudis were suppressing a 'Day of Rage' in Arabie... Gaddafi was mopping up the resistance in Libya... And an earthquake and tsunami left thousands dead in Japan.


But that didn't stop the stock market. The Dow rose 59 points.



Now it is Monday. And in all the excitement we kinda lost track... But we gots to know...



Is the Great Correction over?

Permalink: [699] Top Stocks To Buy - Debt Makes a Comeback: The New Bubble in the Financial Sector

We are coming up on the 4th anniversary. Countrywide - one of America's leading subprime lenders - went broke in 2007. That was when it began. After more than 6 decades of adding to its liabilities, America began to off-load debt.




And now we have to face a critically important question. Is the Great Correction over?



The New York Times tells us that the Great Correction has done its work. By defaulting on their mortgages and cutting spending, they've got their debt burden down to the lowest level in 6 years:

Total US household debt, including mortgages and credit cards, fell for the second straight year in 2010 to $13.4 trillion, the Federal Reserve reported Thursday. That came to 116% of disposable income, down from a peak debt burden of 130% in 2007, and the lowest level since the fourth quarter of 2004.



With the help of rising stock prices, the decrease in debts put average household net worth at $505,000 at the end of 2010, up 5.1% from 2009, though still well below a peak of $595,000 in the second quarter of 2007, before housing prices plunged.



Defaults on mortgages and credit cards played a large role in bringing down household debt, underscoring the extent of the financial distress still afflicting US families. Commercial banks wrote off $118 billion in mortgage, credit-card and other consumer debt in 2010, the Fed said. That's over half the total $208.8 billion drop in household debt, which also includes new mortgages and credit cards.



People are also fixing their finances the hard way, by boosting the portion of their income that they use to pay down debt. The personal savings rate averaged 5.8% in 2010, up from a low of 1.4% in 2005, and back to a level last seen in the early 1990s.




Even as US households reduce their debt, the country's overall obligations are rising, with weak tax revenues and efforts to stimulate the economy translating into large budget deficits. Total US nonfinancial debt rose 4.8% to $36.3 trillion, driven largely by a 20% increase in federal debt. Debts of nonfarm, nonfinancial companies rose 5.4% as companies took advantage of low interest rates, but much of that money went to boost their cash coffers, which grew to $1.9 trillion.

The TIMES tells the story of one couple who have reduced their debts... (Notice to grammarians... Yes, it should be a couple "that has reduced its debts." But, what the heck? We've stopped wearing a tie to work. We haven't been to church in weeks. And now we're going to be a little loose with the language too.):

Since late 2008, he and his wife have slashed their total debt from nearly $1 million to zero by walking away from the mortgages on four rental properties and paying off two others, all of which lost about half their value in the housing bust. He's no longer taking up to $4,000 from his monthly income to pay mortgage interest that the rental income didn't cover.



Instead, he and his wife are fulfilling their goal of building a new $350,000, four-bedroom home in the Dallas suburb of Lewisville, where they plan to retire. "It's a big relief," said Mr. Shah. "We went through some rough times, but now I'm comfortable and don't have to worry about my retirement."

What a happy story. Here's a couple that improved its balance sheet by $1 million...simply by "walking away" from mortgages.



And more thoughts...




Hey, wait a minute. Surely, those debits were someone else's credits. What happened to the million bucks?



Oh, don't play dumb, dear reader. You know how the system works. The mortgages were held by banks. The banks wrote off $118 billion last year. Other mortgages were included in packages known as derivatives. When they went bad, the banks sold them to the Fed, which included them on its list of "assets."



In 2007-2009 the banks faced losses that would have wiped many of them out - including the biggest. But what are the feds for if not to protect half-wits, incompetents and bankers? So, the bankers were allowed to dump their mistakes on the Fed...and the public. Zero interest rates then allowed them to restock their bonus pools while force-feeding debt onto the whole society.



You have to marvel at it. It is as though the debt just disappeared. Trillions' worth.



And now what? Private households may still be reducing their debt, but the financial sector - with the Fed behind it - is off to the races again. Corporations are going into the marketplace, borrowing money and distributing it to their owners.



The Financial Times:

Economist Andrew Smithers points out that in the first 9 months of last year, non-financial corporations, listed and un-listed, paid out more to shareholders than they made in profits. In other words, they took advantage of record low interest rates to transfer money from lenders and bondholders to shareholders.

Yes, dear reader, the world may not be going back to the naive bubble of the '05-'07 years. No one would want it to. It's moving on - to a new bubble. Total bank loans are still below the level of 2009. But they're going up. "Cov-lite" loans - those with little protection for the lenders - are coming back. Even interest only loans are making a re-appearance.



Capital is changing hands...from the fools to the knaves. Private equity hotshots are borrowing money at low rates so they can pay themselves. The underlying business is weakened with debt; but nobody seems to care.



The other sector of the economy that is leveraging up in a big, big way is government. Here again, the money goes from the fools to the knaves. Government squanders the money in all the usual ways. But lenders still believe they will get it back. Our guess is that the lenders will be wrong. They are making a bad bet. They will not be repaid.



*** Oh those poor Japanese. It was not enough that they have had to endure a 21-year on-again, off-again slump. Nor that their economy, their country, and their race are all facing extinction. Now, they have Mother Nature washing them away too.



New Zealand was hit by a disastrous earthquake recently too. In response, its central bank lowered interest rates. Central banks are now called upon not merely to maintain full employment and level out the ups and downs of the business cycle. Now, they're called out like the National Guard.




Last week, the Kiwi central bank lowered its key lending rate from 3% to 2.5%.



But what will the Bank of Japan do? It already has a lending rate at zero - where it's been for the last 15 years. And yet, it is sure to need more cash and credit to rebuild infrastructure washed away by the tsunami.



Oh my... That's the problem with being "zero bound." There's nothing left. You can't give help when it is really needed.

2012 Saab 9-3 test mule spied again

Here are a set of spy shots of the 2012 Saab 9-3 test mule.

The chassis on this mule appears to have some modifications, including a wider front axle. In a set of shots snapped during testing in southern Europe in February, we also noticed the extended wheel arches.

As the model is slated for a debut next year, we can expect a full body prototype to begin testing soon.

The 2012 Saab 9-3 will be offered in both three- and five-door hatchback body styles. It will be built on a modified Epsilon I platform with parts sourced from other automakers such as BMW.

Earlier this month, Saab introduced an updated 9-3 convertible which featured two variants of a 2.0 liter turbocharged petrol engine, with outputs at 163 PS (120 kW / 161 hp) and 320 Nm (236 lb-ft) of torque as well as 220 PS (162 kW / 217 hp) and 350 Nm (258 lb-ft) of torque. Those are possibilities for the next 9-3.

But last September Saab announced an engine purchasing agreement with BMW that raises the possibility of new or additional power plants. The MINI Cooper has a 1.6 liter turbo that comes in three output levels: 175 PS (129 kW / 173 hp), 184 PS (135 kW / 181 hp) and 211 PS (155 kW / 208 bhp).

Also a candidate may be BMW's new 2.0-liter turbo but perhaps dialed down a bit to 225 PS (166 kW / 222 bhp). BMW recently unveiled that new power plant in the X1 xDrive28i with an output of 245 PS (180 kW / 242 bhp).

The new Saab 9-3 is expected to hit the market in 2012.

Mercedes-Benz S-Class by Inden Design

German tuner Inden Design has a package that aims to bring the (W221) Mercedes-Benz S500 closer to an S65 AMG, at least in terms of looks.

The tuning package begins on the outside with a new front spoiler, side sills and a rear diffuser with integrated quad exhaust pipes. Daytime running lights are also added while taillights and side mirrors get their own touches too. The S500 gets coated in a charcoal-gray matte film for that unique flush look.

For the engine tuning, there's a power upgrade to 420 PS (309 kW / 414 bhp) up from the series' 388 PS (285 kW / 383 bhp) on the 5.5 liter V8. That comes in part due to the new stainless-steel exhaust system with AMG pipes.

Brakes are upgraded to those found on the S600 V12 BiTurbo with 6-piston calipers for the front wheels and 4-piston brake calipers to keep the rear axle in check.

Suspension lowering of 50 mm also takes place and helps highlight the new 20-inch wheels with 265/30-20 tires at the front and 275/30-20 tires for the rear rims.

For the cabin Inden Design has a two-tone leather and Alcantara finish for the headliner, door panels and all three pillars along with carbon inserts replacing the former wood trims. A new speedometer now reads up to 360 km/h.

Source: Inden Design

Motley Fool Top Stocks Advisors 2011

Motley Fool Top Stocks Advisors 2011:The third high-yield superstar

Annaly Capital Management (NYSE: NLY) is my final dividend pick for 2011. This mortgage real estate investment trust (REIT) currently pays out a 14% yield, and it could be a great play for next year if inflation doesn't rear its ugly head. Annaly makes its money on interest rate spreads, using short-term financing to buy longer-term mortgage-backed securities, largely issued by Fannie Mae and Freddie Mac.

Annaly thrives in a low-interest rate environment, making it a great countercyclical play, and we have every indication that low interest rates will continue for some time. The Fed has already said that it will maintain low rates for an extended period. And even with Quantitative Easing 2.0 in full gear, there are already rumblings of a third iteration of the program, which would push interest rates still lower. So if you believe in the disinflation or deflation hypothesis, this company could be for you.

Alternative ways to play the deflation hypothesis would include Annaly spinoff Chimera Investment (NYSE: CIM) and American Capital Agency (Nasdaq: AGNC), which are both REITs and have the same fundamental business model as Annaly. American Capital Agency pays out a trailing yield of 18.7%, while Chimera sports a 16.9% yield.
Motley Fool Top Stocks Advisors 2011:Alex Dumortier, CFA, Fool contributor

In this environment, you're much more likely to find 2011's best international stock in the old-world, slow-growth markets of Europe or Japan. Most investors are now chasing emerging market stocks and acting as if no valuation is too high to own a piece of companies in high GDP growth countries -- never mind that the link between GDP growth and stock returns is very weak. Meanwhile, Europe and Japan have been left for dead by investors, despite the fact that both can boast world-class companies, some of which derive substantial profits outside their domestic/regional markets.

If you are willing to consider buying foreign stocks trading on the pink sheets (which I strongly recommend), I urge you to take a look at Pargesa Holding (OTC: PRGAF.PK). This Swiss holding company is jointly controlled by a master capital allocator, Albert Frere (it is no exaggeration to call him the Belgian Warren Buffett).

Pargesa owns large shareholdings in a small number of European blue chips, including Total (NYSE: TOT), Lafarge, and Pernod Ricard, which are all global franchises. Pargesa's Swiss shares currently trade at a 23% discount to their adjusted net asset value, enabling investors to buy some of the world's greatest companies with a healthy margin of safety. However, the U.S.-traded shares are very illiquid and are suitable only for those who would be willing to hold them beyond 2011.
Motley Fool Top Stocks Advisors 2011:Gerard Torres, Fool contributor

Remember the story of the tortoise versus the hare? Well, Israeli wireless service provider Partner Communications (Nasdaq: PTNR) is a lot like the tortoise. It churns out steadily growing profits, which it willingly returns to its shareholders.

The Israeli telecommunications market is undergoing a makeover. Recent regulatory changes have been instituted to promote greater competition. Meanwhile, the wireless market has hit its saturation point and is only expected to grow modestly. That doesn't sound like ideal business conditions, but Partner will be able to overcome these obstacles and continue to build its intrinsic value.

Partner Communications has first-mover advantage. While any new competitors will have to build up their infrastructure, Partner is continually adding customers, particularly to its higher-margin data services. Sure, it's not going to win any awards for staggering growth, but new entrants will have an uphill battle over the next decade if they want to take market share.

In the meantime, Partner offers impressive profitability and strong growth of free cash flow. Better yet, it maintains a dividend policy in which it will pay out at least 80% of its net income to shareholders while carrying a tempting price-to-earnings ratio of 9.2. Just like the tortoise, bit by bit it will get you to the finish line.
Motley Fool Top Stocks Advisors 2011:Tim Hanson, advisor, Global Gains

Markel Chief Investment Officer Tom Gayner was speaking at Fool HQ recently and was asked why his portfolio doesn't have more international exposure. He responded to that question with a question, challenging his interlocutor to decide whether Peoria, Ill., industrial giant Caterpillar (NYSE: CAT), or Japanese auto manufacturer Honda (NYSE: HMC) was the more international firm. The answer is that based on where these companies do business, Caterpillar is the more international pick. As it turns out, just 32% of Caterpillar's revenue comes from the U.S. versus 45% for Honda.

Now keep that example in mind as I reveal that my top international pick for 2011 is Bentonville, Ark.,-based retail giant Wal-Mart (NYSE: WMT). Although Wal-Mart is America's largest retailer and employer, the company actually has a very international future -- with aggressive expansion plans in place in China and Brazil, a recent acquisition in South Africa, and a rumored acquisition in Indonesia looming. And while many emerging markets stocks are being valued at a premium at present given the outsized growth expectations in these markets, you can buy Wal-Mart's exposure at a sharp discount given the market perception that it's a low-growth domestic retailer. I expect that perception to change in 2011 and for investors in Wal-Mart to benefit as a result.
Motley Fool Top Stocks Advisors 2011:Telecom darlings

The wireline space has been a particularly good performer in 2010, with major players CenturyLink (NYSE: CTL), Windstream (Nasdaq: WIN), and Frontier Communications (NYSE: FTR) all moving up nicely and paying out nice dividends. Frontier's EBITDA margins are comparable to those of Windstream at around 50%, with both trailing CenturyLink's 54%. So they are all able competitors.

But I think Frontier still has a lot of room to run, especially since these companies should be valued on their dividends. Frontier now offers a 7.9% yield, compared to Windstream's 7.1% and CenturyLink's 6.2%. Why do these three companies have such disparate yields?

If the market were to give Frontier shares similar yields to either Windstream or CenturyLink, its stock could still have upside of 11% to 27%, respectively, in addition to that meaty dividend. Even better, Frontier's free-cash-flow payout in the latest quarter was just 59% -- leaving the company some room to boost its dividend, perhaps back to the $1 level that we saw before the recent acquisition of Verizon's lines.

One further kick to all the companies in the industry is the possibility of consolidation as the wireline space becomes even more competitive. We've already seen some of the effects of that in the past few years, and there well could be more of it. This would push up stock prices even further. So those are the reasons Frontier could be a nice winner in 2011, and they're why I own the stock myself.
Motley Fool Top Stocks Advisors 2011:Smokin' dividends

It's hard to argue with a company that has been a dividend darling for as long as Altria (NYSE: MO) has. Altria has one of the strongest brands in the world, in Marlboro, and the company has boosted its quarterly dividend three times in just the last six quarters. Given the company's commitment to pay out at least 80% of its earnings, the stock looks like a great place for 2011 and some time beyond. With that commitment, any earnings increase goes straight back into investors' pockets.

Like the wireline telecom space, the tobacco industry has come under pressure, but Altria the stock has plenty of puffs left in it. And using the simple mathematics that I described above, it still can make a lot of sense to buy into this market leader now.

How S&P Responds to 1275 Is Huge Market 'Tell'

The Dow [.DJIA 12066.80 8.78 (+0.07%) ]

suffered a triple digit sell off Tuesday and the S&P [.SPX 1308.44 2.11 (+0.16%) ]

closed sharply lower with investors running for the exits after crude hit $100 and comments from Ben Bernanke sparked inflation concerns.

Demonstrations overseas sent oil prices [CLCV1 102.45 0.22 (+0.22%) ]

surging with varying degrees of violence reported in Libya, Yemen, Bahrain, Oman, Iran and Iraq. Investors now worry that oil workers in some of these nations may strike.

Meanwhile, in testimony before Congress, Ben Bernanke showed little concern about the move in oil, and again called the risk of inflation ‘modest.'

The Street largely took his comments to mean the recent spike in oil and other commodities will not lead to a broad policy response from the Fed, at least for now. In other words the Fed had no plans to aggressively fight inflation by raising rates.

How should you position now? What should you be watching?

Instant Insights with the Fast Money traders

Considering these developments, Guy Adami is concerned that a sell-off may be brewing. “I’m not sure 1300 holds,” he says. And if the S&P tests 1275 it could be a huge market tell. “1275 was resistance on the way up late last year and support on the way down earlier this year. If we test that level, what happens will be telling.”

Mary Ann Bartels, Bank of America Merrill Lynch head of U.S. Technical Analysis largely agrees. She tells us 1270 is her key level on the S&P. And if we breech 1270 then we’re looking at 1220 to 1170, she counsels. "We'll be in for a deeper correction," she says.





Pete Najarian is also growing skeptical of the rally. He points to the Vix [VIX 20.70 -0.31 (-1.48%) ] which closed above 21. “That’s a huge concern,” he says "And when oil ticks above $99 people start to panic," he adds. “Oil can flicker above $100 and we can handle it,” he says, but Najarian needs to see oil really pullback before he can feel bullish.

Joe Terranova thinks the next big move has everything to do with oil. “The market is extremely sensitive to it right now,” he says. In other words, he expects an almost inverse correlation between the price action in crude and that of the S&P. As one goes higher the other likely goes lower.

Tim Seymour is focused on the negative action in energy stocks [XLE 77.51 0.44 (+0.57%) ] despite the stead climb in WTI. He finds the divergence notable.

Geneva 2011: Mini Rocketman Concept misses the Earth so much, misses its wife

Mini's new space-age Rocketman Concept previews what the future of urban mobility could look like for the BMW sub-brand. It's slightly smaller than the current Cooper, and we're big fans of the dual-hinged doors that pivot outwards, complete with the sills. In fact, the whole concept strikes us as totally cool, and is further proof that Mini's cheekiness can be further evolved to new types of vehicles.

The Rocketman's interior uses a space-efficient three-plus-one seating arrangement, and we're told that the car is powered by a highly efficient powertrain capable of returning 78 miles per gallon on the U.S. cycle. Mini's new Connected infotainment system is displayed via three-dimensional graphics on the interactive speedometer screen, and there's even a steering wheel-mounted joystick to operate the whole slew of functions.

There's a whole host of clever features found within the Rocketman, but above all, the concept's design is what really stands out.