5 Good Value Stocks 2014

In mid-September, stocks broke through the top of a trading range that had stubbornly resisted both buyers and sellers for five months. But instead of the breakout being accompanied by high volume with emphasis on blue-chip stocks, the rally has lacked volume and is currently being led by lower-quality stocks. This conundrum has perplexed even the most experienced technicians and fund managers.
September turned the best performance in 71 years, with the major indices rising over 8%, but stocks now appear to be grossly overbought. Investors should consider locking in their gains by selling or using options strategies to stabilize their holdings. This is no time to be a hero by buying at the top. However, despite the short-term overbought nature of the market, there are always bargains to be found if you look hard enough. The six stocks to buy listed here represent extraordinary value even in the current market condition.

5 Good Value Stocks 2014:Olin Corporation (OLN)

 Olin Corporation engages in the manufacture and sale of chlor alkali products in the United States and internationally. The company operates in two segments, Chlor Alkali Products and Winchester. The Chlor Alkali Products segment manufactures and sells chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, bleach products, and potassium hydroxide. The Winchester segment offers sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. The company serves various industrial customers, wholesalers, and other distributors, as well as the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is based in Clayton, Missouri.

5 Good Value Stocks 2014:Avon Products Inc. (AVP)

 Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.

5 Good Value Stocks 2014:Ball Corporation (BLL)

 Ball Corporation, together with its subsidiaries, supplies metal packaging to the beverage, food, and household products industries worldwide. It offers aluminum and steel beverage containers for producers of beer, carbonated soft drinks, mineral water, fruit juices, energy drinks, and other beverages. The company also provides two-piece and three-piece steel food containers and ends for packaging vegetables, fruit, soups, meat, seafood, nutritional products, pet food, and other products, as well as aerosol cans, paint cans, custom and specialty containers and decorative steel tins. In addition, the company provides various aerospace systems comprising spacecraft, instruments and sensors, radio frequency and microwave technologies, data exploitation solutions, and other aerospace technologies and products, as well as offers technical services and products to government agencies, contractors, and commercial organizations for a range of information warfare, electronic warfare, avionics, intelligence, training, and space systems needs. Ball Corporation was founded in 1880 and is headquartered in Broomfield, Colorado.

5 Good Value Stocks 2014:Crown Cork & Seal Company Inc. (CCK)

 Crown Holdings, Inc. engages in the design, manufacture, and sale of packaging products for consumer goods. The company?s products include beverage cans and ends, and other packaging products for various beverage and beer companies; a range of food cans and ends, including two-and three-piece cans in various shapes and sizes for food marketers; and aerosol cans and ends for manufacturers of personal care, food, household, and industrial products. In addition, it produces a range of steel containers for cookies and cakes, tea and coffee, confectionery, giftware, personal care, tobacco, wines, and spirits, as well as for non-processed food products; and offers metal vacuum closures for food market and various specialty containers, as well as steel containers for paints, inks, chemical, automotive, and household products. Further, the company manufactures and sells can-making equipment. It has operations in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. Crown Holdings was founded in 1927 and is headquartered in Philadelphia, Pennsylvania.

5 Good Value Stocks 2014:Carriage Services Inc. (CSV)

 Carriage Services, Inc. provides death care services and merchandise in the United States. It operates through two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment offers various services to meet a family?s death care needs, including consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and services, and transportation services. As of December 31, 2010, it operated 147 funeral homes in 25 states. The Cemetery Operations segment provides interment services; the rights to interment in cemetery sites, including grave sites, mausoleum crypts, and niches; and related cemetery merchandise, such as memorials and vaults. This segment operated 33 cemeteries in 12 states. Carriage Services, Inc. also markets funeral and cemetery services and products on a preneed basis. Its preneed funeral or cemetery contracts enable families to establish, in advance, the type of service to be performed, the products to be used, and the cost of such products and services. The company was founded in 1991 and is headquartered in Houston, Texas.

Saba Software Misses on Revenues but Beats on EPS

Saba Software (Nasdaq: SABA  ) reported earnings on Jan. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Saba Software missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share contracted.
Margins dropped across the board.
Revenue details
Saba Software chalked up revenue of $30 million. The five analysts polled by S&P Capital IQ expected a top line of $32 million. Sales were 2.8% higher than the prior-year quarter's $29 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.10. The five earnings estimates compiled by S&P Capital IQ forecast -$0.11 per share on the same basis. GAAP EPS were -$0.16 for Q2 versus -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.1%, 290 basis points worse than the prior-year quarter. Operating margin was -17.6%, 1,530 basis points worse than the prior-year quarter. Net margin was -15.0%, 1,270 basis points worse than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?
Next quarter's average e! stimate for revenue is $33 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $131 million. The average EPS estimate is -$0.21.
Investor Sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 56 members out of 75 rating the stock outperform, and 20 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Saba Software a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Saba Software is buy, with an average price target of $11.88.

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