There are some low-priced stocks out there that really catch Wall
Street’s fancy. There’s some kind of love affair with a cheap stock —
with investors fooling themselves into thinking that it’s easier for a
$1 stock to get to $2 than it is for a $100 stock to get to $200.
But
the bottom line is still the bottom line. A stock succeeds or fails on
the merit of its business, not logistical nonsense like shares
outstanding or the headline value of stock.
Take the 50-to-1 stock split that Berkshire Hathaway
(NYSE:BRK.B) executed in 2009 to bring its “Baby B” stock down from
more than $3,000 a pop to a manageable amount under $100 per share. Did
it change the company? Did Warren Buffett become any smarter or dumber
as a result?
And on a more basic level, you make the same amount
of money owning one share of a $3,000 stock as you do with 3,000 shares
of a $1 stock. Either way, you have the same amount of money invested —
it’s just divided up differently.
So if you’re afraid of
high-priced stocks or in love with bargain picks, take a moment to
consider these five stocks with $200-plus price tags — and the potential
to move even higher in the months ahead:
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - Intuitive Surgical
(NASDAQ:ISRG) makes the innovative da Vinci surgical systems that have
revolutionized operations used to treat cancer and heart disease, among
other things. Without getting too technical, Intuitive Surgical gear
allows doctors to operate on a patient with fewer incisions, speeding up
recovery time and reducing the risk of complications. ISRG is up 400%
in five years — taking the recession in stride thanks to powerful growth
as its technology has caught on and as aging baby boomers create
increased demand for surgeries. The company has seen nine straight
quarters of year-over-year profit increases and has seen a streak of
revenue increases even longer than that. Health care is one of the few
growth areas in the American economy, and ISRG is well positioned to
capitalize on this trend.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - Apple
(NASDAQ:AAPL) is the $400 gorilla of Wall Street that dares you to bet
against it. Yeah, shares dropped 15% from October to November — but
Apple has bounced back in a big way, hitting an all-time high Wednesday,
and seems ready to move even higher. The iPad 3 could come as recently
as February, if you believe the rumors, and Apple clearly is looking to
maintain its stranglehold on the tablet market. Wall Street is
admittedly ga-ga for Apple, so you have to beware of the hype. Still, a
forward price-to-earnings ratio of less than 11 hints that there still
is time to buy Apple for the continued march upward.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - MasterCard
(NYSE:MA) is at the center of a macro trend that is tough to ignore:
the death of paper money. Per-swipe transactions continue to rise even
in America, since as much as 40% of transactions in the U.S. still take
place with cash or paper checks. But the real growth for MasterCard is
coming from emerging markets, where a rising middle class is getting
access to bank accounts and debit cards. Remember, MasterCard is not a
debt issuer, but more of a toll-taker on the e-commerce superhighway.
Every time you make a purchase, MasterCard gets paid — and it’s hard to
believe that the number of people using plastic is going to decline
anytime soon.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - Priceline
(NASDAQ:PCLN) and its iconic pitchman William Shatner have taken over
the travel business with an innovative “name your own price” model for
airfares, hotels, rental cars and a host of other services. However, the
real growth isn’t at home from people booking trips to Florida to see
the grandparents — it’s internationally. PCLN offers hotel room
reservations in about 100 countries and more than 40 languages. That has
allowed for big growth despite the fact that Priceline is competing
with internet travel sites like Kayak that have popped up in recent
years. Profits are on track to double from 2010 to 2011, and grow an
additional 25% in 2012.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - W.W. Grainger
(NYSE:GWW) is a rather un-sexy company when compared to the others on
this list. It is engaged in “facilities maintenance,” a glorified way to
refer to distributing pumps, tools, motors and other gear that allow
businesses to … well, do business. That might not sound exciting, but a
60% surge in GWW stock since the summer is worth taking note of. The
company has seen eight consecutive quarters of year-over-year revenue
increases. EPS numbers jumped 29% from 2010 to 2011 and are set to surge
another 17% in 2012. W.W. Grainger is expanding in China and Panama,
too, which could add even more momentum to shares. You might want to
wait for a pullback after the red-hot run recently, however.
Showing posts with label Best Stocks To Invest In 2013. Show all posts
Showing posts with label Best Stocks To Invest In 2013. Show all posts
3 Undervalued Tech Stocks to Buy in 2012
When investors see the words “undervalued tech stocks,” the first
companies that jump to mind are probably the mega-cap giants like Cisco (NASDAQ:CSCO) and Microsoft
(NASDAQ:MSFT). The large-cap space certainly has more than its share of
cheap tech stocks, but a look into mid- and small-cap territory reveals
other, less talked-about opportunities. Computer Sciences (NYSE:CSC), Lexmark International (NYSE:LXK), and China Digital TV (NYSE:STV), are three such stocks that deserve more attention than they receive.
3 Undervalued Tech Stocks to Buy in 2012 - Computer Sciences
Shares of CSC, an IT-outsourcing company, have been pummeled from a February high above $56 to $37.20 on Wednesday. The stock has been hit by less-than-stellar earnings results and concerns that the U.S. government’s perilous fiscal situation will weigh on the 39% of CSC’s business that comes from federal contracts. That’s undoubtedly a legitimate worry, but also one that is well-known at this point. At 7.3 times 2012 estimates (and a price-to-earnings-to-growth ratio of 0.9) and a share price sitting at 0.8 times book value, it appears that the bad news is fully discounted in the stock. Two other key points regarding CSC: first, the stock yields 2.2% – much better than you’ll find with the average large-cap tech stock. Second, the company is cash-rich and is frequently mentioned as a target of a buyout. Betting on a takeover is always a dicey proposition, but CSC offers investors a solid risk-reward tradeoff even without the benefit of a buyout.
Keep in mind: The last time CSC’s P/E was at this level, the stock traded up 25% in less than two months.
3 Undervalued Tech Stocks to Buy in 2012 - Lexmark International
A maker of printers, ink, and imaging products, Lexmark has seen its shares come under heavy selling pressure since late 2010 – a trend that wasn’t helped by its May earnings miss. While the printing business is indeed in gradual decline, it may finally be time to say “enough is enough” regarding the downturn in Lexmark’s share price. After hitting a high above $47 in mid-October, the stock now stands at $28.62. At this level, the stock trades at forward P/E of less than 7x, and removing the net cash of $7 a share (about a quarter of its market cap) on its balance sheet brings the P/E below 5.5x. A low P/E can be a trap when growth is slowing, of course, but the company’s core ink business continues to generate substantial free cash flow. And like CSC, Lexmark has the added benefit of being a strong candidate for an eventual takeover.
Keep in mind: The recent selloff has driven LXK’s valuation to its lowest level in history.
3 Undervalued Tech Stocks to Buy in 2012 - China Digital TV
The smallest of the three companies discussed here, China Digital could offer big potential to patient investors. The company makes smart cards that allow the conversion of an analog signal to digital. A boring business perhaps, but consider that China is the world’s largest TV market with 377 million viewing households. Of these, 187 million have cable and only 90 million currently have a digital signal. This adds up to a stellar growth opportunity for a company with no debt and over 70% of its market cap accounted for by the $214 million of cash on its balance sheet. The stock trades for less than 7x 2012 earnings estimates and a PEG of just over 0.4. Chinese stocks are not without risk, as 2011 has taught us, but patient investors who tune into STV may be in for quite a show.
Keep in Mind: Like LXK, CSC trades at an all-time low P/E.
Technology investing has been no picnic for investors thus far in 2011, but these stocks provide a compelling margin of safety in the event of further volatility in the months ahead.
3 Undervalued Tech Stocks to Buy in 2012 - Computer Sciences
Shares of CSC, an IT-outsourcing company, have been pummeled from a February high above $56 to $37.20 on Wednesday. The stock has been hit by less-than-stellar earnings results and concerns that the U.S. government’s perilous fiscal situation will weigh on the 39% of CSC’s business that comes from federal contracts. That’s undoubtedly a legitimate worry, but also one that is well-known at this point. At 7.3 times 2012 estimates (and a price-to-earnings-to-growth ratio of 0.9) and a share price sitting at 0.8 times book value, it appears that the bad news is fully discounted in the stock. Two other key points regarding CSC: first, the stock yields 2.2% – much better than you’ll find with the average large-cap tech stock. Second, the company is cash-rich and is frequently mentioned as a target of a buyout. Betting on a takeover is always a dicey proposition, but CSC offers investors a solid risk-reward tradeoff even without the benefit of a buyout.
Keep in mind: The last time CSC’s P/E was at this level, the stock traded up 25% in less than two months.
3 Undervalued Tech Stocks to Buy in 2012 - Lexmark International
A maker of printers, ink, and imaging products, Lexmark has seen its shares come under heavy selling pressure since late 2010 – a trend that wasn’t helped by its May earnings miss. While the printing business is indeed in gradual decline, it may finally be time to say “enough is enough” regarding the downturn in Lexmark’s share price. After hitting a high above $47 in mid-October, the stock now stands at $28.62. At this level, the stock trades at forward P/E of less than 7x, and removing the net cash of $7 a share (about a quarter of its market cap) on its balance sheet brings the P/E below 5.5x. A low P/E can be a trap when growth is slowing, of course, but the company’s core ink business continues to generate substantial free cash flow. And like CSC, Lexmark has the added benefit of being a strong candidate for an eventual takeover.
Keep in mind: The recent selloff has driven LXK’s valuation to its lowest level in history.
3 Undervalued Tech Stocks to Buy in 2012 - China Digital TV
The smallest of the three companies discussed here, China Digital could offer big potential to patient investors. The company makes smart cards that allow the conversion of an analog signal to digital. A boring business perhaps, but consider that China is the world’s largest TV market with 377 million viewing households. Of these, 187 million have cable and only 90 million currently have a digital signal. This adds up to a stellar growth opportunity for a company with no debt and over 70% of its market cap accounted for by the $214 million of cash on its balance sheet. The stock trades for less than 7x 2012 earnings estimates and a PEG of just over 0.4. Chinese stocks are not without risk, as 2011 has taught us, but patient investors who tune into STV may be in for quite a show.
Keep in Mind: Like LXK, CSC trades at an all-time low P/E.
Technology investing has been no picnic for investors thus far in 2011, but these stocks provide a compelling margin of safety in the event of further volatility in the months ahead.
High Dividend Stocks For 2013
Go Global for Bigger Dividends, Growth
How is a prudent, conscientious person supposed to retire these days? The mutual fund industry tells you to invest in their low-dividend (or no-dividend) funds and hope the capital gains will be enough to carry you through. As we’ve seen in the past decade, though, the gains don’t always materialize when you need them. What then?High-dividend stocks. Rather than buying an index fund yielding only 1.8%, you should choose carefully among high-dividend stocks. And while there are dividend stocks on our own shores that may fit the bill, investors who are willing to look beyond our borders can find generous yields with greater growth potential.
Here are seven top global dividend stocks to buy:
High Dividend Stocks For 2013#1 – Cellcom Israel (CEL)
Recommended by: Richard Band, Editor, Profitable InvestingCellcom Israel (NYSE: CEL), Israel’s largest wireless carrier with 34% of the market, just declared its first quarterly dividend for 2011 — the equivalent of 85.7 cents (U.S.) per share. Annualized, that works out to a super-sweet yield of almost 11%!
CEL hands over virtually all its profits to shareholders as dividends, so there’s a chance the company may have to trim the payout in future quarters if business hits a speed bump. On the other hand, this “pay it all out” policy (similar to the approach taken by most U.S. master-limited partnerships) imposes rigorous capital allocation discipline on management. In short, Cellcom execs don’t waste money.
Buy dividend stock CEL on a pullback below $33.
High Dividend Stocks For 2013 #2 – Aberdeen Chile Fund (CH)
Recommended by: Bryan Perry, Editor, Cash MachineOne of my mega-themes for 2011 (and beyond) is the emergence of certain South American countries toward becoming developed nations. At the forefront of this movement, most would argue for Brazil, but within the past year, it has become evident that Chile might be the first to become a comparable neighbor to that of its northern counterparts, the United States and Canada.
Because many of the companies that thrive in the Chilean economy are not listed here in the United States, I find it suitable to embrace the Chilean investment theme with the purchase of the Aberdeen Chile Fund (AMEX: CH), a closed-end fund that has been a star performer in 2010. CH traded ex-dividend on March 29, and after hitting $23, it is now trading back down to support near $21 where a good entry point can be established while locking in a 9.61% dividend yield. Shares of CH should make their way back to $26. Buy CH up to $22.
High Dividend Stocks For 2013#3 – Telkom Indonesia (TLK)
Recommended by: Richard Band, Editor, Profitable InvestingThe mantra here is “free cash flow.” In recent years, Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia, has poured huge sums into upgrading its networks. Now the company has the luxury of throttling back a bit.
Starting in 2011, each sales dollar (rupiah, actually) will generate more profit — along with a surge of cash that can be distributed to shareholders. I predict, in fact, that Indonesia’s largest telco will boost its dividend more than 30% by 2013 (from a 2010 base). That’s the kind of growth you want in retirement! Current yield, based on my estimate of 2011 dividends, is 4.8%. Buy TLK up to $36.
High Dividend Stocks For 2013 #4 – ING Asia Pacific High Dividend Equity Income Fund (IAE)
Recommended by: Bryan Perry, Editor, Cash MachineWe are witnessing the re-acceleration of the BRIC countries (Brazil, Russia, India and China) following a period of consolidated growth. The BRICs are enjoying renewed gross domestic product (GDP) expansion in the first quarter of 2011, especially China, and revving up for a strong year following a full six-month correction.
Pacific Rim countries will lead the way, making the ING Asia Pacific High Dividend Equity Income Fund (NYSE: IAE) an attractive buy after trading ex-dividend on April 1. With the stock sitting right on its 200-day moving average at $18.50, sporting a current dividend yield of 9.12%, it’s timely to pick up some shares. Buy IAE under $21.
High Dividend Stocks For 2013 #5 – CPFL Energia S.A. (CPL)
marketing copy
It is a well-known fact that electricity consumption grows faster than the rate of growth of the economy. This is because as people build their wealth, they consume more. They buy bigger houses, they get more appliances and technology and such. Also, as industries enter a growth phase, they tend to use more power.
Because of the above characteristics, electric utilities in emerging markets are the first to see their businesses flourish. Brazil’s CPFL Energia S.A. (NYSE: CPL) distributes electricity to 6.4 million customers in about 570 communities, primarily in the states of Sao Paulo and Rio Grande do Sul. CPFL Energia also owns hydroelectric power plants and trades wholesale power in the open market and offers energy management services. Management estimates show that the company provides about 13% of Brazil’s electricity.
The company currently has a 6.9% dividend yield and should also benefit from a strong “currency tailwind” from the Brazilian real. The Brazilian real is a very strong currency as the central bank there maintains the highest real interest rates among major emerging economies. The shares offer a rare combination of both a high dividend yield and high growth rates, which makes them a great buy. Currently trading around $88, buy CPL on a pullback.
High Dividend Stocks For 2013 #6 – Telenor (TELNY)
Recommended by: Richard Band, Editor, Profitable InvestingWhy would you want to own a telco in Norway? For one thing, as a hedge against the ruinous financial policies of the U.S. government. Thanks to prudent management of the country’s oil revenues, Norway has run a budget surplus every year since 1995. The Norwegian currency (krone), in which Telenor (OTC: TELNY) reports its profits (and pays its dividends), is sounder than both the euro and the U.S. dollar.
But there’s more to this story. TELNY has expanded far beyond its Norwegian base, with mobile and broadband operations in Sweden, Denmark, central and eastern Europe, plus five Asian countries. As a result, little-known Telenor is one of Europe’s fastest-growing telecom businesses. Sales will likely pass $19 billion in 2011. Current yield: 4.2%. Dividends have nearly quadrupled over the past seven years. This year’s dividend amounts to only about half of TELNY’s estimated 2011 profits, so an increase of 10% or so seems probable when the board declares next year’s payout. Buy TELNY on a pullback below $49.
High Dividend Stocks For 2013 #7 – SeaDrill (SDRL)
Recommended by: Bryan Perry, Editor, Cash MachineSeaDrill Ltd. (NYSE: SDRL) is a unique opportunity for income investors seeking a pure play on deep-water drilling outside the post-BP spill in the Gulf of Mexico. The company was formed in 2005, and owns the most state-of-the-art drilling equipment in the entire industry that commands premium day rates. It is in big demand with utilization rates running near100% as big oil deposits become harder to find without going deep.
These guys operate all over the world in 15 countries on four continents, owning 54 rigs with exposure to only one rig in the Gulf of Mexico. Most of their drilling activity is off the coast of Norway and South Asia, so it has no exposure to the now unstable Middle East. However, news of ARAMCO in Saudi Arabia upping drilling production is hugely positive news for the oil and gas drilling sector. It confirms the belief that the worldwide drilling rig count will rise as well as day rates for the balance of 2011.
Shares of SeaDrill stand to trade significantly higher than its current price of $36.50, while paying a dividend yield of 7.5%. Buy SDRL under $40.
University of Charleston: How we cut tuition by 22%
NEW YORK (CNNMoney) -- After seeing enrollment decline for the first time in a decade, the University of Charleston, in West Virginia, slashed tuition by 22% for the upcoming school year hoping to entice more students.
The school, which currently has 1,006 undergraduate students, employed a series of initiatives to afford the cut, including reducing its financial aid, sharing professors with colleges in the region and graduating students early. As a result, tuition for new students will be $19,500 per year beginning in August -- down from the current rate of $25,000.
In an interview with CNNMoney, the university's president, Dr. Edwin Welch, explains why he took this unusual step and what the impact has been so far:
Why did you decide to cut tuition?
Last year, there were 30 students or so who had enrolled at the university but changed their minds after August 1. They went to different places -- we lost some students who transferred to community colleges. This was a new event for us.
We realized parents and families were now considering the overall price, not just the discount [financial aid and scholarships] they would be able to get. As universities we tend to market education the same way Joseph A. Banks advertises clothes, thinking the advertised price is not that important but the discounts are the most important part. But that's what is driving middle-class students away. So it seemed we needed to take a fresh look.
How did you decide on a 22% cut?
We had thought about cutting tuition by 20% at first, but the board said the total price should be under $20,000, so we cut it a little further and agreed on a ceiling price of $19,500.
How are you able to afford to cut tuition by 22%?
We've undertaken about half a dozen initiatives to reduce what it costs to run the institution.
We have a faculty-sharing program, which is a new initiative for this upcoming year. We'll share professors between five school! s to tea ch certain subjects. We also have a fast-track program, and 35% of the students who come to our school and stay earn a degree in three years instead of four or enroll in graduate school. That means students can replace a year of tuition with a year of income.
We have not lowered salaries.
Has the school reduced the total amount of financial aid it is offering to students?
We reduced how much aid we're giving overall. We're guaranteeing no one will pay more than $19,500.
Numbers won't be complete until the end of the year, but if we had 1,000 students and reduced tuition by $5,500 per student, that's $5.5 million that's not going to be awarded in financial aid. But on the other hand, all of our students get a discount anyway because we reduced the overall price.
We still have financial aid available -- a significant amount. This year we probably gave $15 million in financial assistance. Next year, we'll give maybe $10 million.
What has been the impact of the decision to lower tuition so far? Have you seen applications increase?
So far, the reaction from parents and students has been very positive. We expected a spike in applications, and applications are up nicely in our primary markets -- West Virginia, Virginia, Maryland, Pennsylvania, and Kentucky. Total applications are ahead of our two-year average but slightly behind last year.
More importantly, our deposits are up 40%. This suggests that students and families who look at us are finding the new tuition structure attractive and are depositing at a higher rate than previously.
As part of its 5-year vision, your university hopes to increase enrollment -- which currently stands at a total of 1,372 undergraduate and graduate students -- by 79%. Do you think this is a realistic goal?
As part of our vision, we want to reach total enrollment of 2,500 students within the next five years. We are starting a physician's assistant program which should bring some additional ! students , and we would like to add another graduate program. We hope that the process of lowering tuition helps us in the undergraduate area.
Have you seen enrollment decline in recent years?
We've had 60% more enrollment over the past 10 years, and we've had 10 years of increases. Then we had a decrease in new students this year [the 2011-2012 academic year]. We were down 70 students. So our commitment was to make sure this was the one exception to the trend.
What if the tuition cut does not boost enrollment? What's next?
This all revolves around net income. We can meet our budget targets either by increasing enrollment, increasing net revenue per student, or a combination of both. If neither of those three occur, then we will need to reduce expenses or expand other revenue sources.
Do you foresee your decision to cut tuition sparking a price war with other colleges?
I was at a national meeting with college presidents this January talking about tuition reduction, and a number of presidents talked to me in the meeting and outside of the meeting, saying they are considering lowering tuition.
I would hope schools would start to get their advertised price more in line with what people actually have to pay, but presidents are nervous, boards are nervous. It takes a while because it is such a bold and daring thing to do. Most schools are going to be afraid to do it. Sewanee, University of the South, did it last year and their enrollment went up, and we followed what they did.
Which colleges do you expect will be the first to follow your lead and lower tuition?
Schools like us who are second-tier educational institutions. Not Harvard, not the University of Pennsylvania. Schools that already have high rates of financial aid and are willing to market the price over the discount and change the way they operate.
Correction: An earlier version of this story incorrectly stated the school is hoping to add 2,500 students over five ye! ars. It' s trying to reach a total enrollment of 2,500 students in five years.
The school, which currently has 1,006 undergraduate students, employed a series of initiatives to afford the cut, including reducing its financial aid, sharing professors with colleges in the region and graduating students early. As a result, tuition for new students will be $19,500 per year beginning in August -- down from the current rate of $25,000.
In an interview with CNNMoney, the university's president, Dr. Edwin Welch, explains why he took this unusual step and what the impact has been so far:
Why did you decide to cut tuition?
Last year, there were 30 students or so who had enrolled at the university but changed their minds after August 1. They went to different places -- we lost some students who transferred to community colleges. This was a new event for us.
We realized parents and families were now considering the overall price, not just the discount [financial aid and scholarships] they would be able to get. As universities we tend to market education the same way Joseph A. Banks advertises clothes, thinking the advertised price is not that important but the discounts are the most important part. But that's what is driving middle-class students away. So it seemed we needed to take a fresh look.
How did you decide on a 22% cut?
We had thought about cutting tuition by 20% at first, but the board said the total price should be under $20,000, so we cut it a little further and agreed on a ceiling price of $19,500.
How are you able to afford to cut tuition by 22%?
We've undertaken about half a dozen initiatives to reduce what it costs to run the institution.
We have a faculty-sharing program, which is a new initiative for this upcoming year. We'll share professors between five school! s to tea ch certain subjects. We also have a fast-track program, and 35% of the students who come to our school and stay earn a degree in three years instead of four or enroll in graduate school. That means students can replace a year of tuition with a year of income.
We have not lowered salaries.
Has the school reduced the total amount of financial aid it is offering to students?
We reduced how much aid we're giving overall. We're guaranteeing no one will pay more than $19,500.
Numbers won't be complete until the end of the year, but if we had 1,000 students and reduced tuition by $5,500 per student, that's $5.5 million that's not going to be awarded in financial aid. But on the other hand, all of our students get a discount anyway because we reduced the overall price.
We still have financial aid available -- a significant amount. This year we probably gave $15 million in financial assistance. Next year, we'll give maybe $10 million.
What has been the impact of the decision to lower tuition so far? Have you seen applications increase?
So far, the reaction from parents and students has been very positive. We expected a spike in applications, and applications are up nicely in our primary markets -- West Virginia, Virginia, Maryland, Pennsylvania, and Kentucky. Total applications are ahead of our two-year average but slightly behind last year.
More importantly, our deposits are up 40%. This suggests that students and families who look at us are finding the new tuition structure attractive and are depositing at a higher rate than previously.
As part of its 5-year vision, your university hopes to increase enrollment -- which currently stands at a total of 1,372 undergraduate and graduate students -- by 79%. Do you think this is a realistic goal?
As part of our vision, we want to reach total enrollment of 2,500 students within the next five years. We are starting a physician's assistant program which should bring some additional ! students , and we would like to add another graduate program. We hope that the process of lowering tuition helps us in the undergraduate area.
Have you seen enrollment decline in recent years?
We've had 60% more enrollment over the past 10 years, and we've had 10 years of increases. Then we had a decrease in new students this year [the 2011-2012 academic year]. We were down 70 students. So our commitment was to make sure this was the one exception to the trend.
What if the tuition cut does not boost enrollment? What's next?
This all revolves around net income. We can meet our budget targets either by increasing enrollment, increasing net revenue per student, or a combination of both. If neither of those three occur, then we will need to reduce expenses or expand other revenue sources.
Do you foresee your decision to cut tuition sparking a price war with other colleges?
I was at a national meeting with college presidents this January talking about tuition reduction, and a number of presidents talked to me in the meeting and outside of the meeting, saying they are considering lowering tuition.
I would hope schools would start to get their advertised price more in line with what people actually have to pay, but presidents are nervous, boards are nervous. It takes a while because it is such a bold and daring thing to do. Most schools are going to be afraid to do it. Sewanee, University of the South, did it last year and their enrollment went up, and we followed what they did.
Which colleges do you expect will be the first to follow your lead and lower tuition?
Schools like us who are second-tier educational institutions. Not Harvard, not the University of Pennsylvania. Schools that already have high rates of financial aid and are willing to market the price over the discount and change the way they operate.
Correction: An earlier version of this story incorrectly stated the school is hoping to add 2,500 students over five ye! ars. It' s trying to reach a total enrollment of 2,500 students in five years.
Best Oil Stocks To Buy - Volume sunk to the lowest level of the year, but this could change if some of the big caps exceed estimates
Even though Monday turned out to be the fifth consecutive day of gains, it didn’t feel like a market that was headed higher. Perhaps it is the pause before Q2 earnings begin to pour in, or maybe after eight days down and five up investors are tired of the roller coaster. Both the NYSE and the Nasdaq traded less shares than on Friday, which was the lowest volume of the year until yesterday.
After spending most of the morning in minus territory, the Dow Industrials managed to break even at noon, but then trudged on to the close and a slight gain. Despite the overall lethargy, big-cap technology stocks were the beneficiary of analysts’ upgrades. Best Oil Stocks To Buy - Microsoft Corporation (NASDAQ: MSFT), SanDisk Corporation (NASDAQ: SNDK), and Best Oil Stocks To Buy - QUALCOMM, Inc. (NASDAQ: QCOM) benefitted from the attention. But the tech-heavy Nasdaq only rose by 0.9%.
And there was speculation that BP plc (NYSE: BP) or a substantial portion of it would be sold off to pay for the billions of dollars of losses incurred from the Gulf of Mexico crisis. Exxon Mobil Corporation (NYSE: XOM) was rumored to be a beneficiary of some of the pieces of BP, and Apache Corporation (NYSE: APA) was named by the Wall Street Journal as a buyer of up to $10 billion of BP’s assets.
At the close, the Dow Jones Industrial Average rose 18 points to 10,216, the S&P 500 gained under a point to 1,079, and the Nasdaq rose 2 points to 2,198.?
The NYSE traded 855 million shares with decliners over advancers by 1.7-to-1. The Nasdaq crossed 510 million shares and decliners there were ahead by 2.3-to-1.
Crude oil for August delivery fell $1.14 to $74.95 a barrel, and the Energy Best Oil Stocks To Buy - Select Sector SPDR (NYSE: XLE) lost 14 cents, closing at $52.48.?
August gold was hit with an $11.10 decline, closing at $1,198.70 an ounce, and the Best Oil Stocks To Buy - PHLX Gold/Best Oil Stocks To Buy - Silver S! ector In dex (NASDAQ: XAU) fell $1.36 to $173.73. The XAU has been hugging its 200-day moving average since February while recently in a trading range of $170 to $190. Its stochastic issued a buy signal yesterday.
Volume for the last two days has sunk to the lowest level of the year. This could change if some of the big caps exceed both earnings and revenue estimates. But following a rebound after a head-and-shoulders break the pattern of low volume is consistent with a faltering recovery.?
The big number to watch is the resistance zone around the S&P 500′s 1,100 area. That zone contains the primary bearish resistance line and the 50- and 200-day moving averages now at 1,094 and 1,112.?
The second quarter’s earnings started with Alcoa Inc.’s (NYSE: AA) report last night. The stock modestly exceeded analysts’ estimates for both earnings and revenues. Now let’s see what the bulls can do with it.
Earnings to be reported after the close include: AAR Corp., Adtran, Intel and YUM! Brands.
Economic reports due: NFIB small business optimism, ICSC-Goldman Sachs store sales, international trade (the consensus expects -$39 billion), Redbook and Treasury budget (the consensus expects -$70 billion).
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
The Secret to Banking Giant Options Gains–! If you&# 8217;re ready to make serious money, we’re talking about 100%-5,300% profits, read our just-released trading guide online now. In it we reveal the money-doubling secret we were banned from sharing, plus two free trades to get you started. Get your FREE copy here!
After spending most of the morning in minus territory, the Dow Industrials managed to break even at noon, but then trudged on to the close and a slight gain. Despite the overall lethargy, big-cap technology stocks were the beneficiary of analysts’ upgrades. Best Oil Stocks To Buy - Microsoft Corporation (NASDAQ: MSFT), SanDisk Corporation (NASDAQ: SNDK), and Best Oil Stocks To Buy - QUALCOMM, Inc. (NASDAQ: QCOM) benefitted from the attention. But the tech-heavy Nasdaq only rose by 0.9%.
And there was speculation that BP plc (NYSE: BP) or a substantial portion of it would be sold off to pay for the billions of dollars of losses incurred from the Gulf of Mexico crisis. Exxon Mobil Corporation (NYSE: XOM) was rumored to be a beneficiary of some of the pieces of BP, and Apache Corporation (NYSE: APA) was named by the Wall Street Journal as a buyer of up to $10 billion of BP’s assets.
At the close, the Dow Jones Industrial Average rose 18 points to 10,216, the S&P 500 gained under a point to 1,079, and the Nasdaq rose 2 points to 2,198.?
The NYSE traded 855 million shares with decliners over advancers by 1.7-to-1. The Nasdaq crossed 510 million shares and decliners there were ahead by 2.3-to-1.
Crude oil for August delivery fell $1.14 to $74.95 a barrel, and the Energy Best Oil Stocks To Buy - Select Sector SPDR (NYSE: XLE) lost 14 cents, closing at $52.48.?
August gold was hit with an $11.10 decline, closing at $1,198.70 an ounce, and the Best Oil Stocks To Buy - PHLX Gold/Best Oil Stocks To Buy - Silver S! ector In dex (NASDAQ: XAU) fell $1.36 to $173.73. The XAU has been hugging its 200-day moving average since February while recently in a trading range of $170 to $190. Its stochastic issued a buy signal yesterday.
What the Markets Are Saying
While everyone waits for the Q2 reports, market leadership has remained absent except for a minor run on utility stocks — the most defensive of all sectors and a discouragement for the bulls. To put it another way, looking to utilities for leadership would be about as weak as Barney Fife leading the charge up San Juan Hill.Volume for the last two days has sunk to the lowest level of the year. This could change if some of the big caps exceed both earnings and revenue estimates. But following a rebound after a head-and-shoulders break the pattern of low volume is consistent with a faltering recovery.?
The big number to watch is the resistance zone around the S&P 500′s 1,100 area. That zone contains the primary bearish resistance line and the 50- and 200-day moving averages now at 1,094 and 1,112.?
The second quarter’s earnings started with Alcoa Inc.’s (NYSE: AA) report last night. The stock modestly exceeded analysts’ estimates for both earnings and revenues. Now let’s see what the bulls can do with it.
Today’s Trading Landscape
Earnings to be reported before the opening include: Fastenal, Hi-Tech Pharmacal and Infosys.Earnings to be reported after the close include: AAR Corp., Adtran, Intel and YUM! Brands.
Economic reports due: NFIB small business optimism, ICSC-Goldman Sachs store sales, international trade (the consensus expects -$39 billion), Redbook and Treasury budget (the consensus expects -$70 billion).
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
The Secret to Banking Giant Options Gains–! If you&# 8217;re ready to make serious money, we’re talking about 100%-5,300% profits, read our just-released trading guide online now. In it we reveal the money-doubling secret we were banned from sharing, plus two free trades to get you started. Get your FREE copy here!
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