As noted earlier, if you're looking for a sleep-well-at-night energy play, skip Canada-based oil sands company Suncor Energy (SU
Suncor, which I first wrote about on February 5, 2009 at a price of $18.35, has chopped and bounced its way up to the $40-level,
primarily largely on oil's sustained, higher price -- necessary to make higher-cost oil-sands extraction profitable.
But to say the rise has had its fits-and-starts would be an understatement: $4 weekly gains are followed $3 losses.
Further, if you're in/at near $18.35, now may be a good time to consider taking some profits with SU.
Continue reading Suncor Energy Chops Above $40
"KKR Financial Holdings (KFN) is a leading alternative asset manager; led by its founders, Henry Kravis and George Roberts, KKR specializes in large, complex buyouts," notes Mark Skousen.
The editor of The Hedge Fund Trader explains, "The company's edge is industry-leading private equity experience, in-depth industry knowledge, sophisticated processes for growing and improving businesses and an almost unbeatable information network.
"KKR has a history of landmark achievements in private equity, including the first leverage buyout above the $1-billion mark.
Continue reading Insider Shows Confidence in KKR Financial (KFN)
Over the years I have referred to "my pal Warren" (Warren Buffet) on many occasions. He has taught me a great deal. I have learned a few things from Sir John Templeton (RIP) as well. But when I think about the price-to-earnings-to-growth (PEG) ratios, it is Peter Lynch who stands tall.
Lynch has been retired for many years and has been generous enough to share some of his thoughts in a couple of worthy books: One Up on Wall Street and Beating the Street. I highly recommend these best sellers to anyone that wants to expand their knowledge of value investing or manage their own finances.
Continue reading Serious Money: Buying the Super Caps, Part 3
Yesterday Hasbro, Inc. (HAS
) reported 2009 fourth quarter and full-year results
For the fourth quarter 2009, the Company reported net revenues of $1.38 billion, an increase of $144.1 million or 12%, compared to $1.23 billion a year ago. 2009 fourth quarter revenues grew 7% excluding a $55.4 million positive impact of foreign exchange. The Company reported net earnings for the quarter of $165.6 million or $1.09 per diluted share, an increase of $72.0 million or 77%,
compared to $93.6 million or $0.62 per diluted share in 2008.
The strong results in a bad year support my contention that today's stock market, even in these uncertain times, does have plenty of bargains.
Continue reading Chasing Value: Hasbro Earnings Makes My Point
We frequently receive comments that the market is overpriced. Recently one of our active readers commented that the market P/E was 30, which it's not. The actual rate (S&P forecast) has been even higher at times
due to the volatile market.
The average should trend closer to the long term P/E of 15.7 in the next few years. However, I have reviewed companies often covered on our site and come up with a list of 35 stocks that have price-to-earning ratios below the long-term average already. I think there are dozens of bargains regardless of the status of the overall market.
Continue reading Serious Money: Market Looks Cheap to Me -- 35 Stocks
The contenders list is down to twelve stocks and three puts. I will not be trimming the list today. Instead, I will be reviewing possibilities among four more stocks of well established companies.
There are the two largest home improvement stores, Home Depot (HD
) and Lowe's Cos (LOW
) as well as the two largest payroll companies, Automatic Data Processing (ADP
) and Paychex Inc. (PAYX
). They are all fine, well-managed companies, so this will just be a numbers game along with a sense of whether the economy is going to reward investors in 2010, or if it's too early.
Continue reading Chasing Value: Ten stocks for 2010 -- Part 10
In Part 6, we're going back for seconds: our second alcohol company, energy company and medical company. The reasons should be apparent, but in case they aren't: I think all three are essential -- maybe alcohol more than the other two. Ironically alcohol can be substituted for the other two, and often has been.
All three companies are well-established and U.S. based, lead their respective industries, have top flight management in the judgment of their peers and the investment community, pay dividends and have a long history of high return-on-equity.
Continue reading Chasing Value: Ten stocks for 2010 -- Part 6
We started this review with 25 stocks
of companies noted for their quality of management and how successful they have been at nurturing new leaders as presented in Fortune magazine. After running them through a serious screening process using universally agreed upon key metrics, the list has been reduced to six candidates for potential investment.
I will reiterate that there is no imperative to invest in any of them even if they might be among the best opportunities from a select list. While I think all of the original companies listed and stocks screened are well regarded that does not mean now is the right time to invest.
Regardless of the outcome of this process, and since price and timing are critical, it would be smart to create a stock watch-list with the inclusion of all six of these companies.
Continue reading Serious Money: Fortune's 25 leaders, final 4
This is the third screening to find value among Fortune's 25 corporate world leaders that have demonstrated an ability to regenerate themselves from within. The list has been cut to 18 and will be cut further here.
The methodology of using basic stock data points to identify potential value investments only sets the stage for success -- it assures nothing. While it is true that paying less is better than paying more and getting a higher yield is better than less, this gives you a scant picture of what is in people's hearts and minds, and that is harder to judge. Like the weather, no matter the predictions, you may not find out it is raining until you are standing in it. Regardless, it should be advantageous to start with good stock (pun intended) before you take to whittlin', and that we have.
Continue reading Serious Money: Fortune's 25 leaders, 18 remain
Yesterday I started a review of 25 companies that Fortune deemed most successful according to their peers in developing quality leadership. Today I review the remaining 20, searching to find the ones that might be worth investing in.
Price-to-book (from 11/27/09) was used as the first value screen. The theory being from a value investor's perspective that buying for a price at or near the break-up value of the company provides downside protection. Of course that is easier said than done.
Continue reading Serious Money: Fortune's 25 leaders, now 20
The recent issue of Fortune magazine discusses how the best of the best train, guide and nurture top managers to become the leaders that will propel their corporations successfully forward. They list the top 25 companies, which I have used as the basis of a new review to see how they would fair against common metric screens.
In the past few months, many articles have posited that large-cap stocks should excel in the coming year based on their lagging the market behind smaller, more volatile stocks flying out of the March lows. I do not believe this is universally true. Plenty of large-cap stocks did well, such as Anadarko Petroleum (APC), Apple (AAPL) and Google (GOOG), while many small caps went nowhere. Even among the large caps included in Fortune's "Leadership 25," some have doubled.
Continue reading Serious Money: Fortune's 25 leaders among leaders
"Some sectors tend to do better than others in tough times; biotechnology often surprises investors in good times and bad," suggests Brandon Clay
In his Invest with an Edge advisory service, the growth stock advisor looks to Celgene Corporation (NASDAQ: CELG), a player in developing cancer treatments. Here's his review.
"This sometimes-perilous market niche can make or break a portfolio depending on several factors: drug pipeline, continued investment, market factors, and government approvals.
"However, despite the risks, there are times when we believe that individual biotech stocks make sense -- such as our latest recommendation for Celgene.
Continue reading Celgene (CELG): Cancer progress boosts biotech
Next Page »