Best Stocks to buy Now - Asia investors watching for China price data

Best Stocks to buy Now - SYDNEY (MarketWatch) ? Asian investors will be waiting for Chinese consumer price data in the week ahead to gauge the likelihood of more monetary policy easing from Beijing.

Economists widely expect the data, due Thursday, to show Chinese consumer prices moderated to grow at around 4% in January on an annual basis. That would represent an easing from the 4.1% growth recorded in December.

Consumer-price inflation cooled in December, compared to November, and investors are likely hoping for a further decline in consumer prices in order to clear the way for further loosening in Chinese monetary policy to support economic growth.

Concerns about the health of the Chinese economy linger, with last week?s manufacturing survey data from China showing a slight improvement but also indicating that the sector remains sluggish.

The inflation numbers will be followed by Chinese trade data on Friday.

The health of the Chinese economy is of particular interest to Australia?s policy makers, given that China imports an outsized proportion of Australian commodities.

The Reserve Bank of Australia?s interest-rate-setting committee is set to announce a decision on interest rates early next week, and many economists expect another quarter-point interest rate cut from the central bank at its first meeting of the year.

The RBA?s key cash rate currently stands at 4.25%, having been cut twice in quick succession at the end of last year after developments in Europe unsettled global markets.

Elsewhere on the Asian economic calendar, the Bank of Korea will also announce a policy decision, while Indian industrial-produc! tion dat a, and Japanese machinery orders and balance-of-payments data are also due.

On the corporate front, Japanese car giant Toyota Motor Corp. JP:7203 ?TM ?is slated to announce fiscal third-quarter results on Tuesday, while Nissan Motor Co. JP:7201 ? NSANY ?is due to report quarterly results the next day.

Analysts are expecting Best Stocks to buy Now - Toyota to report an attributable net profit of 67.5 billion yen (886 million) for the quarter, from ?93.63 billion in the year-ago quarter, on revenue of ?4.892 trillion, compared to ?4.673 trillion, according to consensus data compiled by Thomson Reuters.

Back in November, when it announced second-quarter results, Toyota said that its operating income took a hit from currency fluctuations and that Japanese and North American sales dropped sharply due to the earthquake that devastated Japan early last year.

Best Stocks to buy Now - Nissan is expected to report a net profit of ?68.60 billion, down from ?80.07 billion last year, according to data compiled by Thomson Reuters.

Top Stocks To Invest In - Has American Capital Agency Become the Perfect Stock?

Every investor would love to stumble upon the perfect stock. But will you ever really find a stock that provides everything you could possibly want?
One thing's for sure: You'll never discover truly great investments unless you actively look for them. Let's discuss the ideal qualities of a perfect stock, then decide if Top Stocks To Invest In -American Capital Agency (Nasdaq: AGNC  ) fits the bill.
The quest for perfection
Stocks that look great based on one factor may prove horrible elsewhere, making due diligence a crucial part of your investing research. The best stocks excel in many different areas, including these important factors:

• Growth. Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line.
• Margins. Higher sales mean nothing if a company can't produce profits from them. Strong margins ensure that company can turn revenue into profit.
• Balance sheet. At debt-laden companies, banks and bondholders compete with shareholders for management's attention. Companies with strong balance sheets don't have to worry about the distraction of debt.
• Money-making opportunities. Return on equity helps measure how well a company is finding opportunities to turn its resources into profitable business endeavors.
• Valuation. You can't afford to pay too much for even the best companies. By using normalized figures, you can see how a stock's simple earnings multiple fits into a longer-term context.
• Dividends. For tangible proof of profits, a check to shareholders every three months can't be beat. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.

With those factors in mind, let's take a closer look at American! Capital Agency.

Factor	What We Want to See	Actual	Pass or Fail?
Growth	5-Year Annual Revenue Growth > 15%	129.4%*	Pass
?	1-Year Revenue Growth > 12%	176.7%	Pass
Margins	Gross Margin > 35%	100%	Pass
?	Net Margin > 15%	90.6%	Pass
Balance Sheet	Debt to Equity < 50%	796.7%	Fail
?	Current Ratio > 1.3	0.06	Fail
Opportunities	Return on Equity > 15%	19.8%	Pass
Valuation	Normalized P/E < 20	9.66	Pass
Dividends	Current Yield > 2%	16.4%	Pass
?	5-Year Dividend Growth > 10%	9.2%*	Fail
?	?	?	?
?	Total Score	?	7 out of 10

Source: S&P Capital IQ. Total score = number of passes. *Three-year growth rates.

Since we looked at American Capital Agency last year, the mortgage REIT has dropped a point. Dividend growth has slowed and recently even reversed course, which could be a sign of things to come for the company.
Investors have gravitated to mortgage REITs for their outsized dividends. With bonds yielding next to nothing, the double-dig! it yield s that American Capital Agency and its peers offer look exceptionally attractive.
But recently, changing trends are threatening those dividends. In its most recent quarter, American Capital Agency reported lower earnings per share due to a big jump in outstanding shares, and more importantly cut its dividend from $1.40 per share to $1.25 for the first quarter of 2012. The company's interest rate spread fell below 2%, prompting further concerns.
The challenges aren't unique to American Capital Agency. Top Stocks To Invest In -Annaly Capital (NYSE: NLY  ) saw similar drops in interest rate spreads, prompting its own dividend cut. Moreover, Annaly and Top Stocks To Invest In -Chimera Investment (NYSE: CIM  ) have started to clamp down on their leverage ratios, which helps make them less sensitive to adverse conditions going forward (but comes at the expense of some profits). Additionally, with new initiatives to help underwater homeowners refinance, prepayment rates could also hurt.
Given its leverage, American Capital Agency is as close to perfection as it's likely going to get. If conditions continue to worsen, though, the company could deteriorate further in the years ahead.
Keep searching
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you'll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.
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