Friday, August 30, 2013

5 Ways To Increase Your Chances Of Getting A Job After College

Top 5 Cheap Companies To Own In Right Now

There's a disturbing trend in America and it's causing soon to be high school graduates to question whether college truly is the key to finding success in a difficult job market. A recent report by the Associated Press found that one out of every two college graduates is either unemployed or underemployed, often working in a field that isn't related to their degree. This, along with the student loan debt topping $1 trillion, is causing graduates to find themselves with low-paying jobs that make them no better off than if they hadn't gone to college at all.

According to economists, college is still the best way to land the higher-paying jobs, but no longer is the act of attending college the key to success. Making the wrong decisions before entering college can hurt your chances of putting your degree to work later on.

Have a Plan
It used to be OK to head to college now and figure out a degree later. According to MyMajor.com, 80% of students entering college hadn't picked a major and 50% will change their major while in college. With rising college tuition and students spending more time in college, they are amassing more debt which translates into higher payments upon graduation. Harvard economist Richard Freeman advises students who are undecided about their future plans to find a job after high school until they decide what they want to study instead of heading to college without a clear plan.

Don't Follow Your Passion
Mark Cuban, entrepreneur and star of the hit television series Shark Tank, advises people not to follow their passion. According to Cuban, we have a lot of passions in our life, but most won't translate into successful careers. Instead, he advises to follow our effort. Look at how you spend your time. Whatever you spend the most time doing may be your perfect career. When we spend time with something, we gain a lot of skill which makes us an expert in that field and being an expert translates to career success.

Create a Barrier
Pursuing a profession that requires a specialized degree creates a barrier to entry. Fields like medicine, education, law and accounting require that you have a degree in order to gain the certification needed to apply for those jobs. Other careers, like the arts, many business jobs and sports management, have collegiate degree programs, but they aren't required to work in the field making the amount of eligible people much higher.

Check BLS
The Bureau of Labor Statistics' website has detailed information about most career paths including average salary and the amount of people needed in those careers in the future. If you're considering more than one degree path, choose one that will have a large need for workers in the future. Fields that have a saturated market not only make it harder to find a job, but the salary may also go down due to the oversupply of workers willing to work for less.

Reduce Your Debt
There are plenty of ways to reduce college debt. Go to a state college if appropriate for your field. You can live at home instead of paying the high price of campus housing, purchase used books, work a part time job if your degree program allows or take summer classes to reduce the amount of time you're in school.

The Bottom Line
Although the college years are still full of fun and great memories for many, making the most of your college education is essential to having the best chances of finding the job you dreamed of having. Remember, the sooner you get out of college, the sooner you will earn money instead of building up more debt.

Wednesday, August 28, 2013

Will Britain Tide Over Banking Blues? - Analyst Blog

When The Royal Bank of Scotland Group plc (RBS) became the fifth largest in the world in terms of assets, it was easily deemed Scotland's economic miracle. However, this brainchild of Sir Fred Goodwin, which broke numerous records on its way to nearly 26 acquisitions in 7 years (up to 2007), is still reeling under recessionary pressures.

When the banking crisis erupted, triggered by the fall of Lehman Brothers in the U.S., it became obvious that many of the assets against which Royal Bank of Scotland had borrowed money were worth only a portion of its previous value. This had prompted the British government to step in with the biggest bailout in history for the Royal Bank of Scotland. Five years later, the British government is still struggling to recover that amount and put the past behind.

The Rise and Fall

Royal Bank of Scotland is an eyesore in the British banking system, a key reminder that all is not well with the sector. The bank, which is a major threat to the stability and health of the country's economy, is an example of a fancy deal that has backfired.

Once the shining example of Britain's banking system, RBS has established that market dominance is transient. After being rescued by the government with £45 billion ($70 billion) in 2008, the bank is still 81% owned by U.K. taxpayers. Private ownership looks unlikely and the Bank of England is now forcing the U.K. Treasury to consider splitting up Royal Bank of Scotland into a nationalized bank and a commercial banking unit.

Is a Split Possible?

The feasibility of the split is, however, in question. The Royal Bank of Scotland plodded on for years since the economic crisis without restructuring its troubled and non-profitable units. This was partly because of the government's decision in 2008 to take a passive approach to manage its stakes in the deeply troubled banks, including Lloyds Banking Group plc (LYG).

Anticipating the banks' quick return to their private ownerships, the gove! rnment did not intrude on their strategies. This was in sharp contrast to the U.S. government, which strategically forced bailed out giant banks like Citigroup Inc. (C) and Bank of America Corp (BAC) to vend their toxic assets.

Additionally, the nagging Eurozone crisis is slowing down investments and trade, throwing further challenges to the already beleaguered financial sector. It also faces stringent regulations and higher taxes on the face of tougher immigration rules. Even international regulations like Basel III that will force all banks to increase capital adequacy, are expected to be detrimental. In short, banks will be heavily regulated with little scale for racy profits but will have a much less chance of failing.

Has Government Taken a Stand?

Initially, the British government was commended for its efforts in dealing with the financial crisis in 2007. While Lloyds is looking up, the long process of restructuring banks is hurting the still-weak British economy.

However, after years of a muted approach, the Treasury is adopting a strapping strategy for The Royal Bank of Scotland. The British administration has pressed the bank to reduce its investment bank, shrink its U.S. unit and refocus on the U.K. business.

The potential split of the bank is likely to be a topic of hot debate, as it is evident that taxpayers will surely incur huge losses. Further, it is expected to hit roadblocks with regulatory authorities. However, we believe that separate banking entities will be easier to regulate. Then again, with impending regulations posing threats, we do not foresee much respite in the near term.

Tuesday, August 27, 2013

Even IBM Subject To Gravity

Strong market share in a variety of hardware, software, and IT service markets makes IBM (NYSE:IBM) a great company, but it doesn't immunize investors against the risks of holding an overpriced stock. To that end, while I've liked the company for some time, I've also thought the shares were too pricey. With the stock down about 5% over the past quarter (and underperforming the S&P 500 by about 14%), though, IBM shares have gotten closer to a potential buy point.

Okay Second Quarter Results, But Quality May Be A Talking Point
IBM missed the top-line target for the second quarter, reporting that revenue fell 3% (or 1% on a constant currency basis). Not unlike Accenture (NYSE:ACN), IBM saw weakness in its large service operations, with revenue down 4%. Hardware remains very weak, with revenue down 12% (though up 21% on a sequential basis), but software was up 4%, with 8% organic constant currency growth in middleware.

IBM's margins were once again mixed. Gross margin improved more than a point from the year-ago level, but operating income declined 15% and the margin declined about two and a half points. It's well worth noting that 12 cents of the company's 13-cent beat was generated from a lower tax rate. It's also worth noting that IBM has changed how it calculates its non-GAAP EPS numbers – although this doesn't change much of anything from a cash flow perspective, it could create some worries about the clarity/quality of IBM's reporting

SEE: A Look At Corporate Profit Margins

How Did IBM Do So Well In Software?
The biggest surprise to me in this quarter was the strength of IBM's middleware business. Websphere revenue was up 10% this quarter, which was much, much stronger than the results reported a little while ago by Oracle (Nasdaq:ORCL) and TIBCO (Nasdaq:TIBX). While I'll grant that maybe conditions are getting better again in the market, it's hard for me to think that IBM isn't gaining share in the middleware market from Oracle, TIBCO, and Software AG (Nasdaq:STWRY). Likewise, the company's information management, Tivoli, and Rational businesses seem to be doing very well against the likes of Oracle, Microsoft (Nasdaq:MSFT), CA (NYSE:CA), and Hewlett-Packard (NYSE:HPQ).

Hardware Still Struggling
IBM's hardware results aren't encouraging for investors hoping for a similar turnaround in this segment of the tech space. Mainframe sales were up 11%, but server sales were weak again (both System p and System x sales were down double-digits), and IBM continues to lose share in its traditional storage hardware operations.

Services Still Adjusting
While IBM's results in the services segments weren't as strong as those recently reported by Infosys (Nasdaq:INFY), companies like Accenture and Hewlett-Packard are probably the better comps. In any case, the 20% year-on-year growth in signings was a positive sign that companies are getting a little more willing to commit to projects beyond 2013. At the same time, investors shouldn't overlook that IBM is still going through some adjustments and restructuring designed to unwind less profitable business, so I don't necessarily believe that this quarter's results are a completely clear look at the health of the business.

The Bottom Line
With as much as $6 billion left to spend on M&A over the next couple of years, IBM still has capital to put to work in expanding its business operations. Moreover, the strength in software suggests that IBM is still pretty competitive on its own merits and has a solid vision for how the enterprise IT market is evolving.

SEE: Technology Sector Funds

I'm still looking for modest growth from IBM (3% revenue growth, 5% free cash flow growth), as I believe that a company of this size is going to be find it challenging to post significantly above-market growth rates for extended periods of time. In any case, those growth numbers suggest a fair value of over $190, which puts these shares as close to value territory as they have been in some time.


Monday, August 26, 2013

Is Xerox Undervalued?

With shares of Xerox (NYSE:XRX) trading around $9, is XRX an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Xerox provides a portfolio of business process and information technology outsourcing support, document technology and solutions. Through the company's business process and information technology outsourcing, it offers global services from claims reimbursement, electronic toll transactions, management of human resource benefits and customer care centers, and the operation of a company’s technology infrastructure. Xerox operates in three business segments: Services, Technology, and Other. Companies are growing at explosive rates worldwide and they need support from companies who have already dealt with these situations. Look for Xerox to continue supporting businesses in growing economies worldwide.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

T = Technicals on the Stock Chart are Strong

Xerox stock has not done very well over the last several years. The stock is currently climbing higher and may be headed towards multi-year highs. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Xerox is trading above its rising key averages which signal neutral to bullish price action in the near-term.

XRX

10 Best Low Price Stocks To Watch Right Now

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Xerox options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Xerox Options

28.39%

23%

20%

What does this mean? This means that investors or traders are buying a small amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

June Options

Flat

Average

July Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a small amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Xerox’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Xerox look like and more importantly, how did the markets like these numbers?

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

21.05%

4.13%

-4.55%

0%

Revenue Growth (Y-O-Y)

-2.67%

-0.69%

-2.87%

-1.30%

Earnings Reaction

-1.86%

2.24%

-5.12%

-6.81%

Xerox has seen mostly increasing earnings and while revenue has decreased over the last four quarters. From these figures, the markets have been disappointed with Xerox’s recent earnings announcements.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

P = Excellent Relative Performance Versus Peers and Sector

How has Xerox stock done relative to its peers, Accenture (NYSE:ACN), Canon (NYSE:CAJ), Hewlett-Packard (NYSE:HPQ), and sector?

Xerox

Accenture

Canon

Hewlett-Packard

Sector

Year-to-Date Return

32.33%

24.92%

-5.23%

48.63%

21.84%

Xerox has been a relative performance leader, year-to-date.

Conclusion

Xerox provides valuable information technology as well as document technology products and services to consumers and growing companies worldwide. The stock has not done too well over the last few years but has seen a nice year-to-date pop. Over the last four quarters, earnings have seen an overall rise while revenue has declined, which has disappointed investors. Relative to its peers and sector, Xerox has been a year-to-date performance leader. Look for XEROX to OUTPERFORM.

Pet Smart's Second Quarter Growls With Delight

The specialty retailer announced solid second quarter results August 21. PetSmart's (Nasdaq:PETM) future seems exceptionally bright. Its stock, however, is another story up just 1% over the past 52 weeks. Is now the time to buy? I'll have a look.

Past Performance
Although the past year hasn't been particularly kind to PetSmart's stock; the same can't be said for the past decade. It's achieved an annualized total return over the past 10 years of 13.2%, 600 basis points higher than the S&P 500 and 325 basis points higher than its specialty retail peers. It's currently trading within 5% of its all-time high of $75.15. In every way it's done what you'd want a stock to do over the long haul.

So why has its stock stalled?

I suspect Barron's May 21 article that brought up investor concerns about online competition was enough to spook anyone considering taking a position. It certainly can't be its financial results. In the first and second quarters it beat earnings per share by two and three cents respectively. In terms of revenues, it missed the Q2 consensus estimate of $1.712 billion by $6 million and the Q1 consensus estimate of $1.72 billion by $10 million. Investors chose to ignore the fact PetSmart increased revenue by 5.3% in Q2 year-over-year and by 5% in Q1. Instead they've hung their hat on a combined revenue miss of $16 million in the first two quarters of the fiscal year—less than 1% of $3.43 billion in revenue. That's just silly.

Margins
My wife and I regularly shop at PetSmart for cat litter. We'd buy our food there as well but it sells our favorite brand for C$3.15 per 13-ounce tin. That's highway robbery in my opinion—instead we buy it a Canadian pet food franchise where we pay C$2.50 for the exact same product.

I've never quite understood why a store with such great buying power and size would sell a product for 26% more than its much smaller competitor. Clearly it's not interested in the Costco (Nasdaq:COST) approach to retail, which is to pass on to their customers any cost savings extracted from suppliers rather than sticking the extra profit in their pockets. However, there's method in its madness.

Over the past decade it's consistently delivered 30% gross margins. It takes all the various products and services it provides to customers and figures out how much it needs to charge for every item in the store in order to annually hit that number. As a consequence it charges a king's ransom for some things and a mere pittance for others. It's taken the art of retail pricing and turned it into a science. My guess is it doesn't sell a great deal of our particular brand and so it sets the price higher while the most popular items are more competitive in order to drive traffic. It's frustrating to have to go to more than one store but I understand why it does this.

SEE: Great Company Or Growing Industry?

You Know What You're Getting
Its consistent gross margin is one of the reasons its stock's done so well over the years. No one wants to invest in a specialty retailer whose margins are all over the map. When you buy PetSmart stock you generally know you're going to get 5% revenue growth, 3% same-store sales growth, 20% earnings growth and an annual increase in its dividend. It's not glamorous but it gets the job done.

Bottom Line
If you look at PetSmart's business there are just three pieces: Consumables, Hard Goods and Pet Services. Consumables, which is food, treats and litter, represents slightly more than half of its overall revenue. Hard goods like collars and leashes accounts for another 33% and the remainder consists of pet services like grooming, training, and boarding. It goods you in the door with the food—at least that's the plan—and then sells you the other stuff later on. It's a very simple business model executed extremely well.

When do the good times end?

I don't think they will. We are a pet-obsessed society and there's nothing on the horizon that suggests this is going to change. In many ways PetSmart is a really expensive Safeway (NYSE:SWY) or Kroger (NYSE:KR)—only for pets. Or more precisely it's a pet version of Tractor Supply (Nasdaq:TSCO), providing everything a pet might need all in one place.

If you compare PetSmart to Tractor Supply from a valuation perspective I think you'll come to the conclusion that both are reasonably priced given their niche businesses. The fact that PetSmart's stock's done nothing the past year while Tractor Supply's achieved a total return of 27% tells me it's ready to pop.

Disclosure: At the time of writing, the author did not own shares of any company mentioned in this article.

Saturday, August 24, 2013

Top Value Companies To Buy For 2014

Gold traders are the most bullish since before the bear market began two months ago after a retreat in equities from an almost five-year high and a weakening dollar spurred demand for bullion.

Nineteen analysts surveyed by Bloomberg expect prices to rise next week, with eight bearish and six neutral, the largest proportion of bulls since March 22. Global stocks that rose to the highest since June 2008 on May 22 reached a six-week low yesterday amid mounting speculation about whether the Federal Reserve will taper stimulus. The U.S. Dollar Index, a measure against six currencies, slipped to the lowest in three months.

Weekly sales of gold held through exchange-traded products are poised for the second-lowest level since March after the value of holdings slumped by about $45 billion this year. The start of the bear market in April spurred a surge in demand for coins and jewelry, with the U.S. Mint saying June 5 that its sales may be a record this year. Demand has been so great in India, the biggest buyer, that the government is curbing imports to ease the nation�� current-account deficit.

Top Value Companies To Buy For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Brian Stoffel]

    This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

    Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

    Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

  • [By Robert Holmes]

     Schlumberger has the most potential upside of any stock in this group of 50 that also makes the firm's Best Ideas list. Analyst Ole Slorer says Schlumberger has "what we consider the most advanced technology portfolio in the industry."

    "Its fundamentals are impressive, with what we think are some of the best field personnel, a pristine service and performance reputation, and leading market share in most of its product lines," Slorer writes.

    Though Slorer's price target is 42% above current levels, his most bullish scenario for Schlumberger over the next year would see shares climb a whopping 116%. On the downside, his most bearish scenario for the company would see shares slide 38% over the next 12 months.

  • [By Rebecca Lipman]

     Together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $91.49B. EPS growth (5-year CAGR) at 24%. According to Morgan Stanley: "Thanks to an estimated $1 billion investment per year in R&D, Schlumberger has what we consider the most advanced technology portfolio in the industry."

Top Value Companies To Buy For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Sam Collins]

    Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

    Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Top 5 High Tech Stocks To Buy For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Ben Levisohn]

    For one day at least, this CAT is not a dog.

    Caterpillar (CAT) has gained 2% to $86.22 today, its largest gain since in a month and the largest gain among the Dow components. The machinery manufacturer has dropped 11% during the past six months, however, as a slowdown in China and cost-cutting at mining companies have hit its shares.

    Bloomberg

    Susquehanna’s Ted Grace offers reasons for optimism, even as he lowers his 12-month price target to $97 from $104:

    CAT remains Positive rated with 15% upside to our $97 price target and upside-downside of 1.2-to-1 (which, like most of our machinery names, is admittedly shy of the 2-to-1 or better ratio we prefer). Despite our 2014-15 EPS being ~6% below consensus, we view our updated estimates as closer to buyside expectations while noting that consensus appears to embed a low tax rate that explains over half of the variance. While there remains plenty of uncertainty on 2014/15, particularly in mining, we believe CAT shares currently discount reasonable top-line expectations while recent meetings with mgmt suggest potential for structural cost savings that could drive better than expected margins/ incrementals. While difficult to identify discernible catalysts, if CAT’s framework for flat-to-better RI revenue growth in 2014 proves correct (admittedly not assumed in our estimates), this would almost certainly debunk the core of the bear thesis and be meaningfully positive for shares.

    Investors waiting for the stock to actually, you know, rise can take comfort in Caterpillar’s $2.40 dividend per share and its more than $3 per share in buybacks in 2013, Grace says.

    Caterpillar’s 2% gain has trumped the Dow Jones Industrial Average’s 0.04% rise, and United Technology’s (UTX) 0.1% drop, while competitor Deere (DE) has gained 1.9% to $83.22.

  • [By Jim Cramer,TheStreet]

    Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

    Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

    Still a fantastic mineral play and a terrific call on world growth.

Top Value Companies To Buy For 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Sam Collins]

    Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

    S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

    Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Friday, August 23, 2013

Top 5 Clean Energy Stocks To Own For 2014

RENO, Nev. (AP) -- Apple (NASDAQ: AAPL  ) said it will pay for construction of an 18-megawatt photovoltaic solar plant in northern�Nevada�to provide power for a data center the technology giant plans east of Reno.

The Fort Churchill Solar Array, to be built in Yerington, was included in a filing Monday by NV Energy (NYSE: NVE  ) with the Public Utilities Commission.

Apple announced plans last year to build the data center. The solar generating plant would be located in Lyon County, south of that facility. The solar plant proposal must be approved by state regulators, a process that could take several months.

In a statement, Apple said the solar project would provide renewable energy for the data center and add clean energy to the power grid.

Top 5 Clean Energy Stocks To Own For 2014: World Wrestling Entertainment Inc.(WWE)

World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business. The company develops content centered around its talent, and presents at its live and televised events featuring World Wrestling Entertainment. It operates through four segments: Live and Televised Entertainment, Consumer Products, Digital Media, and WWE Studios. The Live and Televised Entertainment segment conducts live events; produces television shows; sells merchandise at its live events; provides sponsorships, such as various promotional vehicles, including Internet and print advertising, arena signage, on-air announcements, and pay-per-view sponsorships for advertisers; offers television rights; and markets and promotes the storylines associated with pay-per-view events. It also provides WWE Classics On Demand, a subscription video on demand service that offers classic television shows, pay-per-view events, specials, and original programmi ng. This segment distributes its programming in approximately 30 languages and in approximately 145 countries. Its merchandise consists of various WWE-branded products, such as T-shirts, caps, and other novelty items. The Consumer Products segment licenses and sells retail products, including toys, video games, home videos, apparel, and books; and publishes magazines comprising lifestyle publications with native language editions in the UK, Mexico, Greece, and Turkey. The Digital Media segment operates Web sites; provides advertising services; sells merchandise on its Web site at WWEShop Internet storefront; and offers broadband and mobile content. The WWE Studios segment is involved in the distribution of entertainment films. This segment focuses on creating a mix of filmed entertainment. The company was founded in 1980 and is based in Stamford, Connecticut.

Top 5 Clean Energy Stocks To Own For 2014: International Game Technology (IGT)

International Game Technology (IGT) designs, manufactures, and markets electronic gaming equipment and systems worldwide. The company offers casino-style slot machines that determine the game play outcome at the machine; wide area progressive jackpot systems with linked machines across various casinos; central determination system machines connected to a central server that determines the game outcome, encompassing video lottery terminals used primarily in government-sponsored applications and electronic or video bingo machines; and amusement with prize games. Its systems products include applications for casino management, customer relationship marketing (CRM), and server-based games and player management. IGT?s casino management solutions comprise integrated modules for machine accounting, patron management, cage and table accounting, ticket-in/ticket-out, bonusing (jackpots and promotions), and table game automation. The company?s CRM solutions feature integrated market ing and business intelligence modules that provide analytical, predictive, and management tools for maximizing casino operational effectiveness; and server-based solutions enable game delivery to slot machines, computers, mobile phones, tablets, and other networked devices. Its gaming markets comprise the United States, Canada, Europe, the Middle East, Africa, Mexico and South/Central America, Asia, Australia, New Zealand, the Pacific, and the United Kingdom. The company was founded in 1980 and is headquartered in Reno, Nevada.

Top 5 China Stocks For 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Advisors' Opinion:
  • [By Zachary Silver]

    Delta impressed analysts with its first-quarter earnings figures, and the airline industry appears to be operating with some semblance of stability recently. Delta, however, has been unable to show that it can generate steady earnings per share growth due to the high variability of its operating expenses. The erratic increases in operating expenses are partially a result of the volatile industry and partially a result of Delta�� management team. For example, Delta recently acquired a refinery in Trainer,�Pennsylvania, last May. The refinery is supposed to save $300 million in fuel costs but has posted losses in two straight quarters. Despite some poor managerial decisions, the outlook of the airline industry looks better compared to the last few years. Investors should WAIT AND SEE if Delta can post steady earnings numbers and profit margins in the next quarter before deciding to initiate a long position.

Top 5 Clean Energy Stocks To Own For 2014: Peoples Bancorp Inc.(PEBO)

Peoples Bancorp Inc. operates as a holding company for Peoples Bank, National Association that provides financial products and services. It offers commercial and retail banking, insurance, brokerage, and trust services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and provides commercial, consumer, and real estate mortgage loans, as well as lines of credit. It also offers debit and automated teller machine (ATM) cards; corporate and personal trust services; safe deposit rental facilities; travelers checks, money orders, and cashier?s checks; and telephone and Internet-based banking services. In addition, the company provides a range of life, health, and property and casualty insurance products; and fiduciary and wealth management services. Further, it offers brokerage services through an unaffiliated registered broker-dealer; and credit cards to consumers and business es, as well as provides merchant credit card processing services through joint marketing arrangements with third parties. The company offers its financial products and services through 47 financial service locations and 40 ATMs in southeastern Ohio, northwestern West Virginia, and northeastern Kentucky. Peoples Bancorp Inc. was founded in 1902 and is based in Marietta, Ohio.

Top 5 Clean Energy Stocks To Own For 2014: Marylebone Warwick Balfour Grp(MWB.L)

MWB Group Holdings Plc owns and operates hotels and serviced offices in the United Kingdom. It operates 26 hotels with approximately 1,900 bedrooms under the brand names of Malmaison and Hotel du Vin that provide bars, brasseries, function and private dining rooms, meeting rooms of various sizes, champagne bars, spas, and gyms. The company also offers serviced offices that provide office spaces for small and medium enterprises, corporates, and other clients. It operates 65 centers that provide workstations with office space. MWB Group Holdings Plc was founded in 1994 and is headquartered in London, the United Kingdom.