The wooden but plucky CEO of GM (GM), Rick Wagoner, told the press that if his company is allowed to go into Chapter 11, it will end up being a simple liquidation. GM will be torn into pieces and sold off as scrap. He made one good point to support his point of view. If a bankruptcy of the No. 1 US car company drags on for several months, potential auto buyers will purchase vehicles from competitors that they view as being �safe�.” No one wants to buy a car that won�t be serviced. Wagoner has made this point before, but it is more compelling now that the deadline for the government to approve or disapprove GM�s restructuring plan is only two weeks away.
GM has effectively taken a page out of the AIG playbook for gaming the Administration and Congress. Henry Paulson and his associates were led to believe, perhaps rightly, that if AIG failed it would cost other financial companies so significantly that the government would have to bailout almost every large financial firm in the country. GM�s argument is even simpler. A liquidation of the car firm would probably cost tens of thousands of jobs at the company, and many times that at suppliers. That argument is also old, but with the chance of liquidation in the next few months becoming more likely, it refreshes the strength of the logic.
GM has been in the middle of quietly challenging the government�s plan to close it down for three months now. The Administration has now sent its car experts to Detroit, and they have said that a bankruptcy of either GM or Chrysler is undesirable. They did not elaborate much on this analysis, but, from the standpoint of the car companies, they do not need to. It is enough that the blue chip analysts sent by the President to evaluate the car companies have a belief system that matches the one in The Motor City.
The financial and car industries have effectively ganged up on the government. They would seem to be weak because of their remarkable failures and reliance on out! side hel p to keep them alive. The opposite is true. By being terribly crippled, they are sucking all of the money out of the US Treasury because the Administration knows that if these parts of American business fail, replacing the jobs and capital will be insurmountable tasks. The recession would get much, much worse. Staying ahead of the job losses would become impossible.
AIG has led the way for GM. It has taken government money and made it clear that a great deal of the cash has been wasted. Even with the evidence of that completely uncovered, the Administration has so little power that it cannot let AIG go under, as a punishment for taking taxpayer money and using it for multimillion dollar bonuses.
No one at GM is going to get a raise because the government will give it another $20 billion or $30 billion. The car industry embezzlement is more artful. With more than one million jobs at risk and unemployment rising at a pace rarely seen in American history, letting GM fail would completely compromise any chance of keeping the unemployment rate below 10%. If this figure rises above that number, it will make every American shudder.
Does Frontier Communications Pass Buffett's Test
We'd all like to invest like the legendary Warren Buffett, turning thousands into millions or more. Buffett analyzes companies by calculating return on invested capital, or ROIC, in order to help determine whether a company has an economic moat -- the ability to earn returns on its money above that money's cost.
In this series, we examine several companies in a single industry to determine their ROIC. Let's take a look at Frontier Communications (NYSE: FTR ) and three of its industry peers, to see how efficiently they use cash.
Of course, it's not the only metric in value investing, but ROIC may be the most important one. By determining a company's ROIC, you can see how well it's using the cash you entrust to it and whether it's creating value for you. Simply put, it divides a company's operating profit by how much investment it took to get that profit. The formula is:
This one-size-fits-all calculation cuts out many of the legal accounting tricks (such as excessive debt) that managers use to boost earnings numbers, and it provides you with an apples-to-apples way to evaluate businesses, even across industries. The higher the ROIC, the more efficiently the company uses capital.
Ultimately, we're looking for companies that can invest their money at rates that are higher than the cost of capital, which for most businesses is between 8% and 12%. Ideally, we want to see ROIC above 12%, at a minimum, and a history of increasing returns, or at least steady returns, which indicate some durability to the company's economic moat.
Here are the ROIC figures for Frontier and three industry peers over a few periods.
One thing that makes Frontier so attractive to investors is its high dividend yield. Unfortunately, its low returns, which are shrinking over time, suggest that Frontier may not be able to grow its dividend in the future. In fact, Frontier already had to decrease its dividend by 25% last year, and its shrinking ROIC suggests that it may have to reduce those yields even more.
On the upside, Frontier's acquisition of Verizon assets last year gives it the potential to take advantage of economies of scale, which could help it improve its returns on invested capital in the future. Its increase in returns! from la st year offers some hope in Frontier's ability to improve its ROIC to a more attractive level.
Businesses with consistently high ROIC show that they're efficiently using capital. They also have the ability to treat shareholders well, because they can then use their extra cash to pay out dividends to us, buy back shares, or further invest in their franchise. And healthy and growing dividends are something that Warren Buffett has long loved.
So for more successful investments, dig a little deeper than the earnings headlines to find the company's ROIC. Feel free to add these companies to your Watchlist:
In this series, we examine several companies in a single industry to determine their ROIC. Let's take a look at Frontier Communications (NYSE: FTR ) and three of its industry peers, to see how efficiently they use cash.
Of course, it's not the only metric in value investing, but ROIC may be the most important one. By determining a company's ROIC, you can see how well it's using the cash you entrust to it and whether it's creating value for you. Simply put, it divides a company's operating profit by how much investment it took to get that profit. The formula is:
ROIC = net operating profit after taxes / Invested capital(You can get further details on the nuances of the formula.)
This one-size-fits-all calculation cuts out many of the legal accounting tricks (such as excessive debt) that managers use to boost earnings numbers, and it provides you with an apples-to-apples way to evaluate businesses, even across industries. The higher the ROIC, the more efficiently the company uses capital.
Ultimately, we're looking for companies that can invest their money at rates that are higher than the cost of capital, which for most businesses is between 8% and 12%. Ideally, we want to see ROIC above 12%, at a minimum, and a history of increasing returns, or at least steady returns, which indicate some durability to the company's economic moat.
Here are the ROIC figures for Frontier and three industry peers over a few periods.
Company | TTM< /p> | 1 Year Ago | 3 Years Ago | 5 Years Ago |
|---|---|---|---|---|
| Frontier Communications | 4% | 2.8% | 6.9% | 8.2% |
| Windstream (Nasdaq: WIN ) | 6.9% | 7.2% | 12.4% | 7.9% |
| CenturyLink (NYSE: CTL ) | 2.9% | 7.5% | 6.7% | 6% |
| AT&T (NYSE: T ) | 5.6% | 5.9%* | 6% | 6.5% |
Source: S&P Capital IQ. TTM=trailing 12 months.
*Because T did not report an effective tax rate for one year ago, we used its 35% effective tax rate from three years ago.
Frontier's returns on invested capital are less than half of what they were five years ago. The other companies have also seen declines in their ROIC from five years ago, suggesting that the telecom space is particularly difficult.*Because T did not report an effective tax rate for one year ago, we used its 35% effective tax rate from three years ago.
One thing that makes Frontier so attractive to investors is its high dividend yield. Unfortunately, its low returns, which are shrinking over time, suggest that Frontier may not be able to grow its dividend in the future. In fact, Frontier already had to decrease its dividend by 25% last year, and its shrinking ROIC suggests that it may have to reduce those yields even more.
On the upside, Frontier's acquisition of Verizon assets last year gives it the potential to take advantage of economies of scale, which could help it improve its returns on invested capital in the future. Its increase in returns! from la st year offers some hope in Frontier's ability to improve its ROIC to a more attractive level.
Businesses with consistently high ROIC show that they're efficiently using capital. They also have the ability to treat shareholders well, because they can then use their extra cash to pay out dividends to us, buy back shares, or further invest in their franchise. And healthy and growing dividends are something that Warren Buffett has long loved.
So for more successful investments, dig a little deeper than the earnings headlines to find the company's ROIC. Feel free to add these companies to your Watchlist:
- Add Windstream to My Watchlist.
- Add AT&T to My Watchlist.
- Add Frontier�Communications to My Watchlist.
- Add CenturyLink to My Watchlist.
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!
Best Stocks For 2013 - Las Vegas Sands Beats on Revenue, Matches Expectations on EPS
Best Stocks For 2013 - Las Vegas Sands (NYSE: LVS ) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Las Vegas Sands beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Gross margins dropped, operating margins improved, and net margins grew.
Revenue details
Las Vegas Sands tallied revenue of $2.54 billion. The 15 analysts polled by S&P Capital IQ predicted revenue of $2.47 billion. Sales were 26% higher than the prior-year quarter's $2.02 billion.
Non-GAAP EPS came in at $0.57. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share on the same basis. GAAP EPS of $0.39 for Q4 were 15% higher than the prior-year quarter's $0.34 per share.
For the quarter, gross margin was 37.4%, 960 basis points worse than the prior-year quarter. Operating margin was 26.1%, 190 basis points better than the prior-year quarter. Net margin was 17.1%, 90 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $11.18 billion. The average ! EPS esti mate is $2.56.
Best Stocks For 2013 - Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,755 members out of 2,081 rating the stock outperform, and 326 members rating it underperform. Among 506 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 434 give Las Vegas Sands a green thumbs-up, and 72 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Las Vegas Sands is outperform, with an average price target of $59.82.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Las Vegas Sands beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Gross margins dropped, operating margins improved, and net margins grew.
Revenue details
Las Vegas Sands tallied revenue of $2.54 billion. The 15 analysts polled by S&P Capital IQ predicted revenue of $2.47 billion. Sales were 26% higher than the prior-year quarter's $2.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Best Stocks For 2013 - EPS detailsNon-GAAP EPS came in at $0.57. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share on the same basis. GAAP EPS of $0.39 for Q4 were 15% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin detailsFor the quarter, gross margin was 37.4%, 960 basis points worse than the prior-year quarter. Operating margin was 26.1%, 190 basis points better than the prior-year quarter. Net margin was 17.1%, 90 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $11.18 billion. The average ! EPS esti mate is $2.56.
Best Stocks For 2013 - Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,755 members out of 2,081 rating the stock outperform, and 326 members rating it underperform. Among 506 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 434 give Las Vegas Sands a green thumbs-up, and 72 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Las Vegas Sands is outperform, with an average price target of $59.82.
- Add Las Vegas Sands to My Watchlist.
Best China Stocks 2012 - Choose the Best Spa tub for Your Property
Portable hot tub. Searching for an ultimate time to acquire entire pleasure as well as amusement to your and your loved ones? If so you then must look into obtaining a top quality hot spa getting probably the most soothing benefits. In addition to offering any level of comfort, hot spa day spa acts while stunning house décor equipment. It’s for certain which a top quality bath tub can easily enhance your life style to a degree.
You are able to go with a much more traditions design, that you must build a sizable clip or barrel generally involving wooden. These kinds of solid wood staves are generally useful with regard to four to eight people as they go well with certain requirements. First and foremost, the river in the conventional swimming pool is still similar to swimming pool. You have to move in order to heat as well as filter the idea. In addition, sufficient level of chlorine as well as disinfectants are expected only to conserve the security with the drinking water.
Getting a solid wood outdoor patio in a very transportable hot spa is a great location for any hot spa. You are able to repair all of them outdoors in order that there’s no need to get extra place for these spas. If you’re investing in a bath tub to the amusement goal, mending the idea in the indoors might be only ideal for a person. Generally, any bath tub carries a solid wood chair or even counter caught the actual wall space, in order that it is easy for folks to sit down as well as relax. Temperature the river in various ways such as gas main, electrical power, propane, as well as using the assistance involving wooden to consume enough heat. Portable hot tub.
In the present contemporary spas, you will get complicated design to a less difficult pattern only to satisfy your choices. Perhaps, the options involving components are generally abundant and you’ll get the materials that you just sense will be close the needs you have. Search extensively and obtain the top ! to addre ss your current wants, comfort and ease as well as stimulating level. Portable hot tub.
You are able to go with a much more traditions design, that you must build a sizable clip or barrel generally involving wooden. These kinds of solid wood staves are generally useful with regard to four to eight people as they go well with certain requirements. First and foremost, the river in the conventional swimming pool is still similar to swimming pool. You have to move in order to heat as well as filter the idea. In addition, sufficient level of chlorine as well as disinfectants are expected only to conserve the security with the drinking water.
Getting a solid wood outdoor patio in a very transportable hot spa is a great location for any hot spa. You are able to repair all of them outdoors in order that there’s no need to get extra place for these spas. If you’re investing in a bath tub to the amusement goal, mending the idea in the indoors might be only ideal for a person. Generally, any bath tub carries a solid wood chair or even counter caught the actual wall space, in order that it is easy for folks to sit down as well as relax. Temperature the river in various ways such as gas main, electrical power, propane, as well as using the assistance involving wooden to consume enough heat. Portable hot tub.
In the present contemporary spas, you will get complicated design to a less difficult pattern only to satisfy your choices. Perhaps, the options involving components are generally abundant and you’ll get the materials that you just sense will be close the needs you have. Search extensively and obtain the top ! to addre ss your current wants, comfort and ease as well as stimulating level. Portable hot tub.
est Stocks To Invest In - Moving cheaper pharmaceuticals is much more profitable
Big Pharma undoubtedly hates the thought of losing billions in sales as some of its biggest selling drugs losing patent protection in the next few years. But there??s one health industry colleague that??s licking its chops at the prospect of several of the biggest blockbusters going generic: pharmaceutical distributors.
The big three of drug wholesalers are est Stocks To Invest In - McKesson (NYSE:MCK), Stocks To Invest In - Cardinal Health (NYSE:CAH) and AmerisourceBergen (NYSE:ABC), and all are expected to enjoy steep paydays as a result of the coming generic boon. That may come as a surprise to many investors, because brand-name drugs are much more expensive. But here??s the rub: generics are much more profitable for wholesalers. And that could mean huge dollars for the big
three because, during the next five years, more than $100 billion of branded-drug revenue will be lost to generic competition, according to one
industry consultant.
So is now a good time for investors to jump on the wholesaler bandwagon and capitalize on the coming generic surge?
Or are they already late to the party? After all, in the past two years, both AmerisourceBergen and McKesson have had nice runups, posting share gains of 140% and nearly 100%, respectively. Cardinal, meanwhile, rewarded shareholders with a 60% gain, the same as the Dow.
Still, the influence the big three wield shouldn??t be overlooked. In the battle for prized distribution deals, generic manufacturers must make substantial price concessions to the drug wholesalers if they want their products carried. Cardinal, for example, negotiates deals with generics manufacturers on behalf of its retail customers. That’s good for Cardinal because independent pharmacies provide higher margins, and it??s good for small pharmacies because Cardinal can pool its purchasing power and negotiate lower generic prices than the pharmacies could on their own.
It appears ther! e are st ill growth opportunities here for investors:
The big three of drug wholesalers are est Stocks To Invest In - McKesson (NYSE:MCK), Stocks To Invest In - Cardinal Health (NYSE:CAH) and AmerisourceBergen (NYSE:ABC), and all are expected to enjoy steep paydays as a result of the coming generic boon. That may come as a surprise to many investors, because brand-name drugs are much more expensive. But here??s the rub: generics are much more profitable for wholesalers. And that could mean huge dollars for the big
three because, during the next five years, more than $100 billion of branded-drug revenue will be lost to generic competition, according to one
industry consultant.
So is now a good time for investors to jump on the wholesaler bandwagon and capitalize on the coming generic surge?
Or are they already late to the party? After all, in the past two years, both AmerisourceBergen and McKesson have had nice runups, posting share gains of 140% and nearly 100%, respectively. Cardinal, meanwhile, rewarded shareholders with a 60% gain, the same as the Dow.
Still, the influence the big three wield shouldn??t be overlooked. In the battle for prized distribution deals, generic manufacturers must make substantial price concessions to the drug wholesalers if they want their products carried. Cardinal, for example, negotiates deals with generics manufacturers on behalf of its retail customers. That’s good for Cardinal because independent pharmacies provide higher margins, and it??s good for small pharmacies because Cardinal can pool its purchasing power and negotiate lower generic prices than the pharmacies could on their own.
It appears ther! e are st ill growth opportunities here for investors:
- San Francisco-based Stocks To Invest In - McKesson is the giant of the industry with a market cap of more than $21 billion and annual sales of more than $100 billion. The company said in May that it expects earnings to range between $5.55 and $5.75 a share for the year ending in March 2012. Analysts, however, think McKesson is lowballing and expect the number to be just over $6. If the analysts are right, the company??s stock is trading at a forward price-to-earnings of just 14 based on its current share price of $84.43. Wall Street expects McKesson??s EPS growth rate to average just under 11% during the next 5 years.
- AmerisourceBergen, trading near its 52-week high of $43.47 recently raised its guidance for 2011, saying profits should be between $2.41 and $2.49 a share. The company??s new CEO, Steve Collis, says the smallest of the big three will stay the course by focusing on specialty distribution and generics.
- Reflecting the importance of specialty distribution, Dublin, Ohio-based Cardinal bought P4 Healthcare last November for a half-billion dollars. The acquisition got the company back into the oncology and specialty pharma service game, according to CEO George Barrett. The company posted better-than-expected fiscal third-quarter results and raised its earnings guidance for the year. Investor confidence didn??t seem to be shaken by a prominent hedge fund??s move out of the stock in the second quarter.
Stocks to invest in 2012 - Fulsome Volume Stock at NASDAQ ¨C JVA
Stocks to invest in 2012 - Coffee Holding Co., Inc. (NASDAQ:JVA) witnessed volume of 5.02 million shares during last trade however it holds an average trading capacity of 366,858.00 shares. JVA last trade opened at $11.42 reached intraday low of $11.23 and went +9.23% up to close at $13.26.
JVA has a market capitalization $72.80 million and an enterprise value at $65.61 million. Trailing twelve months price to sales ratio of the stock was 0.76 while price to book ratio in most recent quarter was 4.64. In profitability ratios, net profit margin in past twelve months appeared at 3.27% whereas operating profit margin for the same period at 4.97%.
The company made a return on asset of 12.31% in past twelve months and return on equity of 22.10% for similar period. In the period of trailing 12 months it generated revenue amounted to $87.77 million gaining $16.03 revenue per share. Its year over year, quarterly growth of revenue was 20.00% holding 86.60% quarterly earnings growth.
According to preceding quarter balance sheet results, the company had $2.87 million cash in hand making cash per share at 0.52. The total of $1.82 million debt was there putting a total debt to equity ratio 12.60. Moreover its current ratio according to same quarter results was 2.29 and book value per share was 2.62.
Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 16.43% where the stock price exhibited up beat from its 50 day moving average with $6.99 and remained above from its 200 Day Moving Average with $5.06.
Stocks to invest in 2012 - JVA holds 5.49 million outstanding shares with 2.15 million floating shares where insider possessed 49.37% and institutions kept 3.90%.
JVA has a market capitalization $72.80 million and an enterprise value at $65.61 million. Trailing twelve months price to sales ratio of the stock was 0.76 while price to book ratio in most recent quarter was 4.64. In profitability ratios, net profit margin in past twelve months appeared at 3.27% whereas operating profit margin for the same period at 4.97%.
The company made a return on asset of 12.31% in past twelve months and return on equity of 22.10% for similar period. In the period of trailing 12 months it generated revenue amounted to $87.77 million gaining $16.03 revenue per share. Its year over year, quarterly growth of revenue was 20.00% holding 86.60% quarterly earnings growth.
According to preceding quarter balance sheet results, the company had $2.87 million cash in hand making cash per share at 0.52. The total of $1.82 million debt was there putting a total debt to equity ratio 12.60. Moreover its current ratio according to same quarter results was 2.29 and book value per share was 2.62.
Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 16.43% where the stock price exhibited up beat from its 50 day moving average with $6.99 and remained above from its 200 Day Moving Average with $5.06.
Stocks to invest in 2012 - JVA holds 5.49 million outstanding shares with 2.15 million floating shares where insider possessed 49.37% and institutions kept 3.90%.
Good Stocks To Invest In 2012
real conundrum has emerged in the stock market: it's become quite easy to find undervalued stocks, but when you have too many to choose from, it's hard to see which choice will be the first to rise or has the greatest upside relative to the hundreds of other stocks that will eventually rebound as well.
Then again, if the market fails to recover in coming weeks, months and quarters, then all of these cheap stocks will probably remain at their current levels. So perhaps the best approach is to find undervalued stocks that could be the beneficiary of upcoming events or transactions, what I call "catalysts." I've found three stocks that have clear catalysts in the months ahead...
Advisors' Opinion:
Then again, if the market fails to recover in coming weeks, months and quarters, then all of these cheap stocks will probably remain at their current levels. So perhaps the best approach is to find undervalued stocks that could be the beneficiary of upcoming events or transactions, what I call "catalysts." I've found three stocks that have clear catalysts in the months ahead...
Good Stocks To Invest In 2012:China Ceramics Co. Ltd. (CCCL)
China Ceramics Co., Ltd. engages in the manufacture and sale of ceramic tiles used for exterior siding, interior flooring, and design in residential and commercial buildings primarily in the People's Republic of China. It offers porcelain tiles, glazed tiles, glazed porcelain tiles, rustic tiles, and ultra-thin tiles under the Hengda, Hengdeli, TOERTO, and WULIQIAO brand names. The company primarily sells its products through a distributor network, as well as directly to property developers. China Ceramics Co., Ltd. is based in Jinjiang City, the People's Republic of China.Good Stocks To Invest In 2012:American Software Inc. (AMSWA)
American Software, Inc. and its subsidiaries develop, market, and support a portfolio of software and services that deliver enterprise management and collaborative supply chain solutions worldwide. The company operates in three segments: Supply Chain Management, Enterprise Resource Planning, and Information Technology Consulting. The Supply Chain Management segment provides collaborative supply chain solutions, which include supply chain planning, inventory optimization, manufacturing, and transportation and logistics solutions to streamline the market planning, management, production, and distribution of products for manufacturers, suppliers, distributors, and retailers. It also markets and sells Demand Solutions product line to small and medium sized enterprises through its value-added reseller distribution network; and offers Logility Voyager Solutions suite to customers with distribution-intensive supply chains through direct and indirect sales channels. The Enterprise Resource Planning segment offers purchasing and materials management, customer order processing, financial, e-commerce, flow manufacturing, and traditional manufacturing solutions, as well as provides industry-specific business software to retailers, importers, and manufacturers in the apparel, footwear, sewn products, and furniture industries. The Information Technology Consulting segment provides information technology staffing and consulting services, as well as support for software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration, and maintenance services. The company serves retail, apparel, consumer packaged goods, chemicals, pharmaceuticals, industrial products, and other manufacturing industries through its direct and indirect sales channels. American Software, Inc. was founded in 1970 and is headquartered in Atlanta, Georgia.Good Stocks To Invest In 2012:American Woodmark Corporation (AMWD)
American Woodmark Corp. engages in the manufacture and distribution of kitchen cabinets and vanities for the remodeling and new home construction markets in the United States. The company offers framed stock cabinets in approximately 380 cabinet lines of 90 door designs and in 12 colors. Its stock cabinets consist of a common box with interior components and a maple, oak, cherry, or hickory front frame. The company also provides various turnkey installation services to builder customers through its network of nine service centers. It markets its products primarily under American Woodmark, Timberlake, Shenandoah Cabinetry, and Potomac brand names. The company serves its products to home centers, builders, and independent dealers and distributors. It distributes its products directly through a third party logistics network. American Woodmark Corp. was founded in 1980 and is headquartered in Winchester, Virginia.Good Stocks To Invest In 2012:Nu Skin Enterprises Inc. (NUS)
Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The company also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.Good Stocks To Invest In 2012:JMP Group Inc (JMP)
JMP Group Inc., through its subsidiaries, operates as an investment banking, asset management, and corporate credit management company in the United States. The company provides various investment banking products and services, such as capital raising, mergers and acquisitions transaction, and other strategic advisory services to corporate clients. It also offers sales and trading services, which include distributing equity research products, communicating proprietary investment recommendations, executing equity trades on behalf of institutional clients, and marketing the securities of companies, as well as related brokerage services to institutional investors. In addition, the company provides proprietary equity research in five industries, including consumer, financial services, healthcare, real estate, and technology industries. Further, it provides asset management products and services to institutional investors, and high net-worth individuals; and involves in the management of collateralized loan obligations. JMP Group Inc. was founded in 1999 and is headquartered in San Francisco, California with additional offices in New York, New York; Boston, Massachusetts; Chicago, Illinois; and Alpharetta, Georgia.Good Stocks To Invest In 2012:Taubman Centers Inc. (TCO)
Taubman Centers, Inc. operates as a real estate investment trust. As of June 30, 2005, the company owned a 63% managing general partner?s interest in The Taubman Realty Group Limited Partnership (the operating partnership). The operating partnership is a subsidiary that engages in the ownership, management, leasing, acquisition, development, and expansion of regional retail shopping centers and interests therein. As of August 23, 2007, it owned and/or managed 23 urban and suburban shopping centers in 11 states the United States. These centers are located in metropolitan areas, including New York City, Los Angeles, San Francisco, Denver, Detroit, Phoenix, Miami, Dallas, Tampa, Orlando, and Washington, D.C. The operating partnership also owns certain regional retail shopping center development projects, as well as approximately 99% of The Taubman Company LLC, which manages the shopping centers and provides other services to the operating partnership and to the company. Taubman Centers qualifies as a REIT under the Internal Revenue Code. As a REIT, the company would not be subjected to federal income tax to the extent it distributes at least 90% of its taxable income to its shareholders. Taubman Centers was founded in 1950 by A. Alfred Taubman and is headquartered in Bloomfield Hills, Michigan.Good Stocks To Invest In 2012:Xilinx Inc. (XLNX)
Xilinx, Inc. designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. Its programmable platforms include advanced integrated circuits in the form of programmable logic devices (PLDs); software design tools; and predefined system functions delivered as intellectual property cores. The company?s PLDs comprise field programmable gate arrays, complex programmable logic devices, and extensible processing platforms, which perform desired logic functions. It also provides design services, customer training, field engineering, and technical support. The company offers its products to electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, aerospace and defense, audio, video and broadcast, consumer, automotive, and data processing. It sells its products through independent distributors, as well as through a network of independent sales representative firms, and a direct sales management organization. The company is founded in 1984 and is based in San Jose, California.Good Stocks To Invest In 2012:Transocean Inc. (RIG)
Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.Advisors' Opinion:
- By John Paulson At 2011-10-6
Transocean LTD., formerly Transocean Inc., is an international provider of offshore contract drilling services for oil and gas wells. Transocean Ltd. has a market cap of $24.06 billion; its shares were traded at around $75.41 with a P/E ratio of 13.11 and P/S ratio of 2.51. Transocean Ltd. had an annual average earnings growth of 12.7% over the past 10 years. GuruFocus rated Transocean Ltd. the business predictability rank of 2.5-star.
Transocean stock has not quite recovered from the market crash of 2008, when it plunged from a $160 range to the low $40 range. As of April 25, 2011, it is selling at $73.40, with a 52-week high of $90.53. Year to date, it is up 5.6%.
Paulson initiated his stake in the company in the fourth quarter of 2010. He bought 7.2 million shares at an average price of $67.17. The stock has gained 12.3% since then.
Transocean owned the right that exploded in the Gulf of Mexico oil spill in April, 2010. From 2006-2009, the company earned net income of $1 billion to over $5 billion. In 2010, the year of the oil spill, it took a dramatic hit, earning $961 million in net income. In the fourth quarter of 2010, it lost $799 million in net income. Transocean had a gross profit margin of 46.5% in 2010.
In April, Transocean’s ultra-deepwater drillship set the record for deepest water drill in history: 10,194 feet off the coast of India. The company will also pay the first installment of a proposed dividend of approximately $1 billion in June. - By Brian Stoffel At 2011-10-6
Finally, a list of energy stocks wouldn't be complete without a pure-play rig maker. Though the company took some hits for its role in the Deepwater Horizon disaster in 2010, that didn't stop Jim Mueller and Michael Olsen from adding Transocean to their portfolios.
Jim picked the stock back in November 2010 because he thought the market's expectations for the stock were simply messed up. Using a discounted cash flow model, Jim said the stock's price "implies the company can grow [free cash flow] by just 0.7% for each of the next five years, then by 0.4% for the following five years, followed by no more growth forever."A quick look at history showed him what a silly assumption this was: "Over the past five years, Transocean has grown free cash flow by an average of 41.7% per year."Shares are 19% cheaper than they were when Jim made his original recommendation, which means expectations must be downright outrageous by now.
Good Stocks To Invest In 2012:SuperValu Inc. (SVU)
SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. Its stores offer grocery, general merchandise, health and beauty care, pharmacy, and fuel products. The company operates stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher?s, Jewel-Osco, Lucky, Shaw?s, Shop ?n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates approximately 2,394 traditional and hard-discount retail food stores, including 899 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers, as well as provides logistics support services. SUPERVALU was founded in 1871 and is based in Eden Prairie, Minnesota.Top Stocks To Buy Now - Gold rallies on dollar pullback, Greece
Top Stocks To Buy Now - SAN FRANCISCO (MarketWatch) ? Gold futures rallied Thursday, boosted by a weaker dollar and expectations that central banks will maintain loose monetary policies for some time.
/quotes/zigman/660065 GCJ2 1,775.00, -11.30, -0.63%
Gold for April delivery GCJ2 ?advanced $16.30, or 0.9%, to $1,788.20 an ounce on the Comex division of the New York Mercantile Exchange, trading near session highs.
A day earlier, the metal settled at $1,771.30 an ounce, the highest since mid-November.
Bargain hunters stepped in during the prior session as the metal had eased following disappointment over Chinese data and fading optimism about Greece?s bailout deal.
Open interest, or the number of futures contracts outstanding, has picked up from a month ago ?which helps underpin the technical improvement? of the metal, said George Gero, a vice president with RBC Wealth Management in New York. ?We were looking for ($1,800 an ounce) by June, perhaps we may see if sooner,? he added.
Gold last topped $1,800 an ounce in mid-September after hitting a record $1,891.90 in late August.
Gold?s move! higher Wednesday ?was a reminder, if markets needed it, that central banks are set to remain in accommodative mode for some time to come,? said Michael Hewson, senior market analyst with CMC Markets.
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Top Stocks To Buy Now - Crude oil continues to climb
The price of crude oil has risen about 15% since the start of the year, fuelled by rising tension over Iran and the prospect of improved global growth.He said the dovish tone from the Bank of England on Wednesday, last week?s stimulus from the Bank of Japan and a new long-term refinancing operation from the European Central Bank next week will increase money supply and underpin gold prices ?for some time to come against most [Group of 10] currencies.?
Top Stocks To Buy Now - Upside targets: $1,800, then $2,000
?The key level on the upside lies at the November highs at $1,801 and if we can push above here, then the record highs last year will come back into view, with the likelihood we could well see levels above $2,000 an ounce within the next 12 months,? said Hewson, in e-mailed comments.
With Fitch Ratings earlier this week lowering Greece?s credit rating, ratings agencies are debating whether to take the same step of further downgrading Greece and rate it as a ?selective default,? analysts at Commerzbank said in a note to clients.
Greek lawmakers also need to ?swiftly rubber-stamp? reform measures, while at the same time it isn?t clear how many private bondholders will agree to the country?s agreed haircut, they added.
?The sovereign-debt crisis is thus likely to keep the market on tenterhooks for some time yet, which should benefit gold,? the analysts said. !
Gold futures also got a boost as the dollar fell versus most major rivals.
A weaker dollar is beneficial for gold and other dollar-denominated commodities as it makes them cheaper to holders of other currencies. The dollar index DXY , which compares the U.S. unit to a basket of six currencies, fell to 78.083 from 79.207 on Wednesday.
The euro EURUSD ?gained against the greenback after the Ifo Institute?s gauge of German business confidence rose more than forecast for February, and the shared currency earlier broke through resistance at $1.33 to trade above $1.3340, its highest against the dollar since mid-December. Read more.
Among other metals, copper for March delivery HGH2 ?pared losses, down 2 cents, or 0.5%, to $3.81 a pound.
Silver tracked gold higher, with the March contract SIH2 ?building on earlier gains and rallying $1.20, or 3.5%, to 35.46 an ounce.
Palladium turned higher, with platinum adding to earlier gains. Platinum has had steep recent gains on the back of a labor strike called at a top mine in South Africa.
Platinum for April delivery PLJ2 ?rose $4.60, or 0.3%, to $1,725.40 an ounce. March palladium PAH2 ! < /span>?rose $1.70, or 0.2%, to $719.45 an ounce.
Wednesday saw platinum?s first settlement above $1,700 since late September. For palladium, a settlement of $717.75 an ounce was its highest in five months.
Best Stocks to Buy - Consumers holding back, especially on cars
Best Stocks to Buy - NEW YORK (CNNMoney) -- Retail sales rose in January, but were dragged down by an unexpected decline in auto sales, according to government data released Tuesday.
Overall retail sales were up 0.4% compared to December, the Commerce Department reported. That's only half the gain forecast by economists surveyed by Briefing.com.
The biggest problem was a 1.1% decline in auto sales in the government report. Excluding auto sales, retail sales rose 0.7% in the latest report.
"January's retail sales data are better than they look, but they don't suggest that consumption growth is about to set the economic recovery alight," said Paul Dale, senior U.S. economist for Capital Economics.
The drop in auto sales caught many experts by surprise because automakers reported their best monthly U.S. sales since the spike that occurred during the "Cash for Clunkers" program in 2009.
But much of the gain in reported auto sales was due to a big jump in January fleet sales to business, such as rental car companies. Those sales do not get included in the retail sales reading.
Economists said the sales excluding autos actually came in a bit better than expected, despite the weaker-than-hoped headline reading.
Part of what drove higher spending was an increase in gasoline prices, which lifted money spent at gas stations by 1.4%.
But there was also an increase in spending at general merchandise retailers, which includes department stores. Those sales rose 2% compared to December.
"All the post-holiday markdowns and gift cards received during the holidays worked their magic. They brought people into the stores," said Li! bby Bier man, analyst at Sageworks.
Sales at food stores climbed 1.3%. Riccadonna said that like the increased spending at gas stations, part of rise at supermarket checkouts was due to rising prices. But unlike the gas station rise, food prices accounted for only part of that gain.
"Whether it's buying more food or better cuts of meat, we can't say. But they're buying more, as they are in other categories," he said.
The report revised December data lower, suggesting an even weaker holiday shopping season than previously reported. Overall spending was revised down to essentially no gain after a 0.1% increase in the initial report last month, and there is now a 0.5% drop in spending excluding autos.
Economists had been hopeful that Best Stocks to Buy - consumers would start spending again, as recent jobs reports showed a pick-up in hiring and a decline in unemployment. But consumers seem to be keeping spending in check, despite having more money in the their wallets.
Overall retail sales were up 0.4% compared to December, the Commerce Department reported. That's only half the gain forecast by economists surveyed by Briefing.com.
The biggest problem was a 1.1% decline in auto sales in the government report. Excluding auto sales, retail sales rose 0.7% in the latest report.
"January's retail sales data are better than they look, but they don't suggest that consumption growth is about to set the economic recovery alight," said Paul Dale, senior U.S. economist for Capital Economics.
The drop in auto sales caught many experts by surprise because automakers reported their best monthly U.S. sales since the spike that occurred during the "Cash for Clunkers" program in 2009.
But much of the gain in reported auto sales was due to a big jump in January fleet sales to business, such as rental car companies. Those sales do not get included in the retail sales reading.
Economists said the sales excluding autos actually came in a bit better than expected, despite the weaker-than-hoped headline reading.
Gift cards: Most popular holiday gift
Best Stocks to Buy - "To write this off as a weak report is a mistake," said Carl Riccadonna, senior U.S. economist at Deutsche Bank. He pointed out that most categories other than autos, furniture, health care products and nonstore retailers, primarily the online shopping, posted gains.Part of what drove higher spending was an increase in gasoline prices, which lifted money spent at gas stations by 1.4%.
But there was also an increase in spending at general merchandise retailers, which includes department stores. Those sales rose 2% compared to December.
"All the post-holiday markdowns and gift cards received during the holidays worked their magic. They brought people into the stores," said Li! bby Bier man, analyst at Sageworks.
Sales at food stores climbed 1.3%. Riccadonna said that like the increased spending at gas stations, part of rise at supermarket checkouts was due to rising prices. But unlike the gas station rise, food prices accounted for only part of that gain.
"Whether it's buying more food or better cuts of meat, we can't say. But they're buying more, as they are in other categories," he said.
The report revised December data lower, suggesting an even weaker holiday shopping season than previously reported. Overall spending was revised down to essentially no gain after a 0.1% increase in the initial report last month, and there is now a 0.5% drop in spending excluding autos.
Economists had been hopeful that Best Stocks to Buy - consumers would start spending again, as recent jobs reports showed a pick-up in hiring and a decline in unemployment. But consumers seem to be keeping spending in check, despite having more money in the their wallets.
Best Stocks To Buy Right Now - Energy stocks took a back seat in recent rally
I bet you want to know the answer to this question: If global stock markets do continue to bounce over the next 74 days until the end of the year, which stocks and ETFs would benefit?
We already have a lot of the positions that should benefit: Markets in southeast Asia, Asia Minor and South America, as well as gold and gold miners. However there could be a group of companies that start to gain ground: Ones that have been weak until now, and have rebound potential.
Best Stocks To Buy Right Now - Michael Belkin, an influential equity and credit researcher based on Bainbridge Island who has made countless great calls over the years — including a famous forecast of the collapse of the Japanese markets back at the end of 1989 when they were at their peak — says he says it is time to go back to Investing 101 and buy low.
His top picks include “frontier markets” such as Egypt, Vietnam, the Persian Gulf and Africa. “Since most managers haven’t figured out that these markets exist or how to invest in them, opportunities still exist for intrepid early adopters,” he said in a report late last week. “This asset class will probably get glued into emerging markets by capital flows over the next several years. It hasn’t happened yet.
The main fund covering this area is Best Stocks To Buy Right Now - Guggenheim Frontier Markets (FRN), though it is dominated by Chilean and Colombian stocks, which we already own. Going farther afield is Best Stocks To Buy Right Now - Market Vectors Africa (AFK). I don’t like this fund, however, because of its very low trading volume and the fact that it largely just tracks the price of crude oil, since energy exploration and production is the largest source of wealth in emerging Africa.
Best Stocks To Buy Right Now - MV Egypt (EGPT) is kind of interesting, but it’s mostly a cotton and finance story and the fund is again very lightly traded.Best Stocks To Buy Right Now - MV Vietnam (V NM) is more compelling as it is an emerging manufacturing hub as factory managers keep seeking cheaper labor for the sort of low-level finished goods that China first cut its teeth on.
Over on the Continent , the two main funds focused on this idea?would be SPDR S&P Emerging Europe (GUR), which has decent volume, and?iShares Emerging Eastern Europe (ESR), which has very light volume. There’s also a single country fund that looks very attractive from a valuation and business momentum perspective:?Market Vector Poland (PLND). The Polish economy is one of the most robust in Europe, with stronger than expected banking and manufacturing sectors.
Most commodities have been on a tear, with grains up +40% and gold up a ton in recent months. But one commodity group that has almost been forgotten, and is still cheap, is the most fundamental: energy. Belkin says his model has a fresh upward forecast for the prices of all carbon products — crude oil, gasoline and heating oil — as well as ethanol and sugar. A rotation to this area is likely.
The same could be said for energy stocks, which have taken a backseat in the recent rally. Belkin’s model favors higher-beta medium- and small-sized energy companies in the United States and Europe. Large-cap energy producers of all stripes are in the fund?SPDR Energy Select (XLE), while smaller energy companies are in?SPDR Oil Services (XES) and?SPDR Exploration (XOP).
Just smaller companies are in the new, lightly traded?PowerShares S&P Smallcap Energy (XLES). And a way to mix energy and emerging markets is through?MarketVectors Russia (RSX), which is largely driven by that country’s large energy companies.
Other buy-low sectors for Belkin with outperform prospects are in tech, heavy industry and discretionary or retail. Everyone knows that Apple! (NASDAQ: AAPL) and now Google (NASDAQ: GOOG) are up, but much of tech has been left behind. Some top rally prospects well below their all-time highs include?Western Digital (NYSE: WDC),?Alcatel Lucent (NYSE: ALU),?Ciena (NASDAQ: CIEN),?Micron (NASDAQ: MU),?LSI (NYSE: LSI) and?Applied Materials Best Stocks To Buy Right Now - (NASDAQ: AMAT).
Industrial stocks that his model considers undervalued are?Jacobs Engineering (NYSE: JEC),Best Stocks To Buy Right Now - Masco (NYSE: MAS),?Textron (NYSE: TXT) and?Mantiwoc (NYSE: MTW). The fundamental outlook for these companies is not great, but as Belkin notes, “that is how value stocks always look” before they turn higher at inflection points like this month promises to be. The overall view for a recovery rally is for a bottom-fishing expedition to emerge in depressed stocks and sectors.
For more ideas along these lines, please check out my daily Trader’s Advantage and Strategic Advantage newsletters.
We already have a lot of the positions that should benefit: Markets in southeast Asia, Asia Minor and South America, as well as gold and gold miners. However there could be a group of companies that start to gain ground: Ones that have been weak until now, and have rebound potential.
Best Stocks To Buy Right Now - Michael Belkin, an influential equity and credit researcher based on Bainbridge Island who has made countless great calls over the years — including a famous forecast of the collapse of the Japanese markets back at the end of 1989 when they were at their peak — says he says it is time to go back to Investing 101 and buy low.
His top picks include “frontier markets” such as Egypt, Vietnam, the Persian Gulf and Africa. “Since most managers haven’t figured out that these markets exist or how to invest in them, opportunities still exist for intrepid early adopters,” he said in a report late last week. “This asset class will probably get glued into emerging markets by capital flows over the next several years. It hasn’t happened yet.
The main fund covering this area is Best Stocks To Buy Right Now - Guggenheim Frontier Markets (FRN), though it is dominated by Chilean and Colombian stocks, which we already own. Going farther afield is Best Stocks To Buy Right Now - Market Vectors Africa (AFK). I don’t like this fund, however, because of its very low trading volume and the fact that it largely just tracks the price of crude oil, since energy exploration and production is the largest source of wealth in emerging Africa.
Best Stocks To Buy Right Now - MV Egypt (EGPT) is kind of interesting, but it’s mostly a cotton and finance story and the fund is again very lightly traded.Best Stocks To Buy Right Now - MV Vietnam (V NM) is more compelling as it is an emerging manufacturing hub as factory managers keep seeking cheaper labor for the sort of low-level finished goods that China first cut its teeth on.
Over on the Continent , the two main funds focused on this idea?would be SPDR S&P Emerging Europe (GUR), which has decent volume, and?iShares Emerging Eastern Europe (ESR), which has very light volume. There’s also a single country fund that looks very attractive from a valuation and business momentum perspective:?Market Vector Poland (PLND). The Polish economy is one of the most robust in Europe, with stronger than expected banking and manufacturing sectors.
Most commodities have been on a tear, with grains up +40% and gold up a ton in recent months. But one commodity group that has almost been forgotten, and is still cheap, is the most fundamental: energy. Belkin says his model has a fresh upward forecast for the prices of all carbon products — crude oil, gasoline and heating oil — as well as ethanol and sugar. A rotation to this area is likely.
The same could be said for energy stocks, which have taken a backseat in the recent rally. Belkin’s model favors higher-beta medium- and small-sized energy companies in the United States and Europe. Large-cap energy producers of all stripes are in the fund?SPDR Energy Select (XLE), while smaller energy companies are in?SPDR Oil Services (XES) and?SPDR Exploration (XOP).
Just smaller companies are in the new, lightly traded?PowerShares S&P Smallcap Energy (XLES). And a way to mix energy and emerging markets is through?MarketVectors Russia (RSX), which is largely driven by that country’s large energy companies.
Other buy-low sectors for Belkin with outperform prospects are in tech, heavy industry and discretionary or retail. Everyone knows that Apple! (NASDAQ: AAPL) and now Google (NASDAQ: GOOG) are up, but much of tech has been left behind. Some top rally prospects well below their all-time highs include?Western Digital (NYSE: WDC),?Alcatel Lucent (NYSE: ALU),?Ciena (NASDAQ: CIEN),?Micron (NASDAQ: MU),?LSI (NYSE: LSI) and?Applied Materials Best Stocks To Buy Right Now - (NASDAQ: AMAT).
Industrial stocks that his model considers undervalued are?Jacobs Engineering (NYSE: JEC),Best Stocks To Buy Right Now - Masco (NYSE: MAS),?Textron (NYSE: TXT) and?Mantiwoc (NYSE: MTW). The fundamental outlook for these companies is not great, but as Belkin notes, “that is how value stocks always look” before they turn higher at inflection points like this month promises to be. The overall view for a recovery rally is for a bottom-fishing expedition to emerge in depressed stocks and sectors.
For more ideas along these lines, please check out my daily Trader’s Advantage and Strategic Advantage newsletters.
Stocks to Buy 2012 - Best Stock Picks 2012
elow is a list of my latest stock picks for 2012. These 2012 Stock Picks are my favorite stocks to buy and some of the stocks I will be trading personally. Last year, one of my top stock picks was Best Stock Picks 2012 Apple (AAPL) which I recommended at $330 per share. Apple stock recently hit $400 per share. Another one of my hot stocks to buy in 2011 was Hyperdynamics (HDY). HDY stock provided a huge gain in January and several more good rallies.
I feel 2012 will be a sideways year for stocks and the overall stock market. As you know, 2012 is an election year. Stocks could get volatile late in the year as investors position their portfolios accordingly. Check out my 2012 best stocks to buy list below.
Latest 2012 Stock Picks
Top Stock Gainers - 2012
#1 Top Stock Pick 2012 - ( Small Cap Stocks ) - Direxion Daily Small Cap Bull 3X Shares (TNA) - Direxion Daily Small Cap Bull 3X Shares (TNA) is my top stock pick for 2012. As we head into December 2011, I am fine tuning my stocks to buy given the fluid conditions we are seeing with the overall stock market and Europe. TNA is one of the most volatile ETF's you can buy but it is a play on the direction of the stock market. TNA is currently trading around $33.50, down $13 per share in just six trading days as Wall St. stresses out about the problems in Europe. Earnings here in the U.S have been strong and some can argue that the jitters we are seeing are just fluff. However, as we head into 2012, we are seeing some great stocks to buy and TNA falls into that category. I feel TNA can rally back to $48-$50 at some point in 2012 with the chance to go to $60. TNA will be my top stock to trade in 2012 given It's volatility. TNA has huge swings almost daily so you can trade it all day long. And, if you want to go short the market, try Direxion Daily Small Cap Bear 3X Shares (TZA). However, TZA is not a good long term stock to buy.
What is Direxion Daily Small Cap Bull 3X Shares (TNA)? The investment seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 2000® Index. The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is non-diversified. TNA fund holds a basket of stocks and bonds with the highest percentage being technology, industrials, financials, and healthcare.
If the stock market crashes, TNA will get crushed. However, I am predictiing the S&P 500 to return to 1250-1300 at some point in 2012 so TNA will be a 35-45% gainer from here. Not a bad return on your money!
Stocks to Buy 2012 - ( Technology - Mobile Phone Stocks ) - Stocks to Buy 2012 - Apple Inc. (AAPL) - Apple Inc. (AAPL) is my top large cap stock pick in 2012. The iPad 3 in expected to launch early 2012 and the iPhone 5 will hopefully arrive at the end of 2012. The passing of Steve Jobs and a key earnings miss has caused AAPL stock to sell off back into the low $360's. AAPL hit a high of $424 in late 2011. I am giving AAPL a $450 price target in 2012 which represents a 25% gain from the current stock price. AAPL will be a monster stock in 2012 as iPhones and iPads sell like crazy. There is even talk of an iTV device coming in late 2012 or early 2013. With the current stock price around $360, you can't go wrong buying AAPL stock today!
#3 Best Stock Pick 2012 - ( Rare Earth Stocks - Metals ) - MolyCorp (MCP) - MolyCorp (MCP) stock recently dropped to $26 so I decided to add this stock to my Top 2012 Stocks to Buy list. Molycorp (MCP) is by far very risky but has been thrown out with the bath water. Rare Earth stocks are out of favor right now due to the huge drops in mineral prices. However, the Mountain Pass mine will come online by mid 2012 which will allow Molycorp to start earning big money. Look for rare earth prices to stablize in early 2012 and this stock to start going back up. This is by far my boldest stock pick of 2012 and if I am right, MCP will again see $40-$45 at some point during the year.
I feel 2012 will be a sideways year for stocks and the overall stock market. As you know, 2012 is an election year. Stocks could get volatile late in the year as investors position their portfolios accordingly. Check out my 2012 best stocks to buy list below.
Latest 2012 Stock Picks
Top Stock Gainers - 2012
#1 Top Stock Pick 2012 - ( Small Cap Stocks ) - Direxion Daily Small Cap Bull 3X Shares (TNA) - Direxion Daily Small Cap Bull 3X Shares (TNA) is my top stock pick for 2012. As we head into December 2011, I am fine tuning my stocks to buy given the fluid conditions we are seeing with the overall stock market and Europe. TNA is one of the most volatile ETF's you can buy but it is a play on the direction of the stock market. TNA is currently trading around $33.50, down $13 per share in just six trading days as Wall St. stresses out about the problems in Europe. Earnings here in the U.S have been strong and some can argue that the jitters we are seeing are just fluff. However, as we head into 2012, we are seeing some great stocks to buy and TNA falls into that category. I feel TNA can rally back to $48-$50 at some point in 2012 with the chance to go to $60. TNA will be my top stock to trade in 2012 given It's volatility. TNA has huge swings almost daily so you can trade it all day long. And, if you want to go short the market, try Direxion Daily Small Cap Bear 3X Shares (TZA). However, TZA is not a good long term stock to buy.
What is Direxion Daily Small Cap Bull 3X Shares (TNA)? The investment seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 2000® Index. The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is non-diversified. TNA fund holds a basket of stocks and bonds with the highest percentage being technology, industrials, financials, and healthcare.
If the stock market crashes, TNA will get crushed. However, I am predictiing the S&P 500 to return to 1250-1300 at some point in 2012 so TNA will be a 35-45% gainer from here. Not a bad return on your money!
Stocks to Buy 2012 - ( Technology - Mobile Phone Stocks ) - Stocks to Buy 2012 - Apple Inc. (AAPL) - Apple Inc. (AAPL) is my top large cap stock pick in 2012. The iPad 3 in expected to launch early 2012 and the iPhone 5 will hopefully arrive at the end of 2012. The passing of Steve Jobs and a key earnings miss has caused AAPL stock to sell off back into the low $360's. AAPL hit a high of $424 in late 2011. I am giving AAPL a $450 price target in 2012 which represents a 25% gain from the current stock price. AAPL will be a monster stock in 2012 as iPhones and iPads sell like crazy. There is even talk of an iTV device coming in late 2012 or early 2013. With the current stock price around $360, you can't go wrong buying AAPL stock today!
#3 Best Stock Pick 2012 - ( Rare Earth Stocks - Metals ) - MolyCorp (MCP) - MolyCorp (MCP) stock recently dropped to $26 so I decided to add this stock to my Top 2012 Stocks to Buy list. Molycorp (MCP) is by far very risky but has been thrown out with the bath water. Rare Earth stocks are out of favor right now due to the huge drops in mineral prices. However, the Mountain Pass mine will come online by mid 2012 which will allow Molycorp to start earning big money. Look for rare earth prices to stablize in early 2012 and this stock to start going back up. This is by far my boldest stock pick of 2012 and if I am right, MCP will again see $40-$45 at some point during the year.
Best Stocks For 2012 - Are Flagstar Bancorp (FBC) & Pacific Sunwear of California (PSUN) Really Top Rebound Candidates?
A lot of small cap stocks are starting to perk up, but none look quite as inviting as Best Stocks For 2012 - Flagstar Bancorp, Inc. (NYSE:FBC) and Best Stocks For 2012 - Pacific Sunwear of California, Inc. (NASDAQ:PSUN) do right now. But, are these charts to be taken at face value? Though it's the perceived value of FBC and PSUN that should be guiding these charts, the fact is, it's the shape of the charts that may be guiding investors to a "half full" conclusion in the half-empty/half-full debate. Take a look.
For Pacific Sunwear of California, Inc., the rally's been underway since December, but didn't get really juicy until this week when PSUN moved above its 200-day moving average line (green) for the first time since early 2011. That being said, it's worth noting that (1) the buyers barely even flinched when the 200-day line was approached, and (2) the buying volume actually increased as PSUN was plowing through that key long-term average. As for the underlying reason though, a couple of quarters' worth of rising top line and shrinking losses may get a big chunk of the credit.
Yes, PSUN is still losing money. There's a light at the end of the tunnel though. The $905 million revenue the company has booked over the past four quarters stops the bleeding revenue trend, and odds are good that 2012's expected sales figure of $889.7 million is simply too low given the unfurling - even if slow-moving - improvement trend. The pros are still thinking Pacific Sunwear of California will 'only' lose $0.78 per share in 2012, but that's actually progress... and sometimes progress is enough to get a stock going again. That's what's happening here anyway, and speculators may want to jump on board this technical strength.
Just to put this bullish reversal from Pacific Sunwear, check out! this we ekly chart.
As for Best Stocks For 2012 - Flagstar Bancorp, Inc., this chart doesn't look as compelling with just a quick glance, but there's a lot more going on with this small cap S&L stock than you might think.
For starters, FBC has finally - legitimately - stopped its own bleeding by using support at the $0.46 level (orange). That pause bought the bulls enough time to muster a rebound effort that has gotten traction... enough traction to push Flagstar Bancorp shares above all the key short-term moving averages, and even muster a few bullish crosses of those moving averages.
The final step in this recovery process for FBC will be a move above the 200-day moving average line (green) at $0.81, but that attack is already underway.
Like Pacific Sunwear of California, this rally from Flagstar Bancorp, Inc. is entirely stemming from a case of "the worst is over", and there are no profits to speak of yet. There are some projected for the near future though. While turning a $0.06 per-share loss into a $0.02 per-share profit isn't going to change the world, it's enough to set up some trade-worthy movement right now.
For Pacific Sunwear of California, Inc., the rally's been underway since December, but didn't get really juicy until this week when PSUN moved above its 200-day moving average line (green) for the first time since early 2011. That being said, it's worth noting that (1) the buyers barely even flinched when the 200-day line was approached, and (2) the buying volume actually increased as PSUN was plowing through that key long-term average. As for the underlying reason though, a couple of quarters' worth of rising top line and shrinking losses may get a big chunk of the credit.Yes, PSUN is still losing money. There's a light at the end of the tunnel though. The $905 million revenue the company has booked over the past four quarters stops the bleeding revenue trend, and odds are good that 2012's expected sales figure of $889.7 million is simply too low given the unfurling - even if slow-moving - improvement trend. The pros are still thinking Pacific Sunwear of California will 'only' lose $0.78 per share in 2012, but that's actually progress... and sometimes progress is enough to get a stock going again. That's what's happening here anyway, and speculators may want to jump on board this technical strength.
Just to put this bullish reversal from Pacific Sunwear, check out! this we ekly chart.
As for Best Stocks For 2012 - Flagstar Bancorp, Inc., this chart doesn't look as compelling with just a quick glance, but there's a lot more going on with this small cap S&L stock than you might think.
For starters, FBC has finally - legitimately - stopped its own bleeding by using support at the $0.46 level (orange). That pause bought the bulls enough time to muster a rebound effort that has gotten traction... enough traction to push Flagstar Bancorp shares above all the key short-term moving averages, and even muster a few bullish crosses of those moving averages.
The final step in this recovery process for FBC will be a move above the 200-day moving average line (green) at $0.81, but that attack is already underway.
Like Pacific Sunwear of California, this rally from Flagstar Bancorp, Inc. is entirely stemming from a case of "the worst is over", and there are no profits to speak of yet. There are some projected for the near future though. While turning a $0.06 per-share loss into a $0.02 per-share profit isn't going to change the world, it's enough to set up some trade-worthy movement right now.
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:
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.
American Capital Agency has plenty of promise, but we've got some ideas you may like even better. Let me invite you to learn about three smart long-term stock plays in the Fool's latest special report. It's yours for the taking and is absolutely free, but don't miss out -- click here and read it today.
Click here to add American Capital Agency to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
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.
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.
American Capital Agency has plenty of promise, but we've got some ideas you may like even better. Let me invite you to learn about three smart long-term stock plays in the Fool's latest special report. It's yours for the taking and is absolutely free, but don't miss out -- click here and read it today.
Click here to add American Capital Agency to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
2012 Best Dividend Stocks To Buy
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 top global dividend stocks to buy:
2012 Best Dividend Stocks To Buy: Mosaic Company (The) (MOS)
The Mosaic Company engages in the production and marketing of concentrated phosphate- and potash-based crop nutrients for the agriculture industry worldwide. The company also offers phosphate-based animal feed ingredients; and produces and sells potash for use as fertilizers and animal feed ingredients, as well as for use in industrial applications. Its potash products are also used for de-icing and as a water softener regenerant. The company?s distribution facilities include sales offices, port terminals, crop nutrient blending and bagging facilities, and warehouses. It sells its products primarily to wholesale distributors, retail chains, cooperatives, independent retailers, and national accounts. The company was founded in 2004 and is headquartered in Plymouth, Minnesota. As of May 25, 2011, The Mosaic Company operates independently of Cargill, Incorporated.Advisors’ Opinion:- Seeking Alpha2011-9-7Mosaic (MOS) potash production capacity has grown 10% since 2006 and is expected to increase another 60% between now and 2020. And as it rises, the company’s stock seems likely to follow. Currently yielding: 0.3%
2012 Best Dividend Stocks To Buy: Eaton Corporation (ETN)
Eaton Corporation operates as a power management company worldwide. It provides electrical components and systems for power quality, distribution, and control; hydraulics components, systems, and services for industrial and mobile equipment; aerospace fuel, hydraulics, and pneumatic systems for commercial and military use; and truck and automotive drivetrain, and powertrain systems for performance, fuel economy, and safety. The company also manufactures screw-in cartridge valves, custom-engineered hydraulic valves, and manifold systems; and electrical and electromechanical systems. In addition, it designs, manufactures, and distributes intake and exhaust valves for diesel and gasoline engines; supplies electrical components for commercial and residential building applications and industrial controls for industrial equipment applications; and manufactures human machine interfaces, programmable logic controllers, and input/output devices. Further, the company also operates as a provider of customized enclosures, rack systems, and air-flow management systems to store, power, and secure mission-critical IT data center electronics; and manufacturer, distributor, and service provider of single-phase and three-phase uninterruptible power supply systems. Eaton Corporation was founded in 1916 and is headquartered in Cleveland, Ohio.Advisors’ Opinion: - Curtis Hesler2011-9-28Eaton Corporation (NYSE:ETN): Down 0.23% to $34.73. Eaton Corporation manufactures engineered products which serve industrial, vehicle, construction, commercial, and aerospace markets. The Company’s principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, and a wide variety of controls.
Top 100 Dividend Stocks to Invest in 2012
In the light of the big news about the death of Osama Bin Laden, it should be an interesting on the world markets. That being said, no matter what happens, I think it’s fair to say that you should not let your future financial independence depend on world events such as this one. That is one reason why this monthly post is always so popular as it represents a good first step to build and improve your passive income portfolio in what could be the difference between an early & enjoyable retirement and a very late retirement where you depend on your former employer or the government to determine the level of your life. So today we resume our monthly tradition of looking at the top 100 dividend stocks in the broad based S&P500 index.
What to look for
Over the past few months, we have looked at quite a few criteria that have helped us find the best dividend stocks including current yield, dividend growth and also companies that produce solid enough earnings to keep up the dividend payments. We summed it all up when we discussed the 20 things that we look for in dividend stocks.
FTR remains once more at the top of our list although it continues to pay out much more than what it makes making its 9% dividend yield unsustainable for now. We did review FTR in the mailing list a few months and did determine it was not a great dividend stock. Both the #2 and #3 positions are also telephone/telecom stocks. Once again, later this week, we will be focused on growth stocks as those seem to be the key to a long term dividend portfolio.
Hopefully this will help you when building your passive dividend porrtfolio.
We will be filtering out the top 100 list to find the ones that fit all of these criteria! In the meantime, here is the list!
What to look for
Over the past few months, we have looked at quite a few criteria that have helped us find the best dividend stocks including current yield, dividend growth and also companies that produce solid enough earnings to keep up the dividend payments. We summed it all up when we discussed the 20 things that we look for in dividend stocks.
FTR remains once more at the top of our list although it continues to pay out much more than what it makes making its 9% dividend yield unsustainable for now. We did review FTR in the mailing list a few months and did determine it was not a great dividend stock. Both the #2 and #3 positions are also telephone/telecom stocks. Once again, later this week, we will be focused on growth stocks as those seem to be the key to a long term dividend portfolio.
Hopefully this will help you when building your passive dividend porrtfolio.
We will be filtering out the top 100 list to find the ones that fit all of these criteria! In the meantime, here is the list!
| Ticker | Name | Price | Dividend Yield | Payout Ratio | Ex-Date |
|---|
|
|---|
Time To Buy Starbucks Stocks in 2012
Time To Buy Starbucks Stocks in 2012 Starbucks K-cups are helping drive results
Starbucks has been a solid performer over the last couple of quarters, beating estimates on strong growth across its different business units. The trend will continue in the first quarter, according to UBS, with U.S. same store sales expected to grow 9%.
Among the best performing units, though, has been the fast growing consumer products group.? CPG, as the unit is called, recently released Starbucks brand K-cups, which are single-serve coffee capsules for Green Mountain Coffee?s Keurig brewers.
Strong early acceptance of Time To Buy Starbucks Stocks in 2012 Starbucks K-cups leads UBS? analysts to note ?the future of the high margin CPG division appears bright;? the product has already grabbed about 12% market share in the K-cup space. ?CPG had grown 20% year-over-year last quarter and is set for another strong run, with analysts forecasting 40% growth in fiscal Q1. Along with K-cups, Starbucks? bagged coffee and blonde roast will further drive the unit, which could add more than 10 cents to fiscal 2012 EPS.
The analysts expect 2012 revenues to grow 13% to $13.2 billion.? They have raised their fiscal 2012 and 2013 estimates to $1.89 and $2.40, which constitute 24% and 27% year-over-year growth respectively.
Starbucks remains a top performer in its sector, its stock up 47% over the last twelve months.? That?s better than competitors Dunkin? Brands (down 6% since it went public in late July) and fast food chains McDonald?s and Yum Brands (up 36% and 24% respectively).
On Thursday, shares in Starbucks traded in positive territory, closing the ! day up 1 % or 48 cents to $47.60 in New York.
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