"Stocks, by just about every long-term valuation measure, are undervalued," says John Reese, who continues to recommend putting money to work in undervalued stocks.

In his Validea newsletter, he selects "undervalued" issues by using screens based on the investment strategies of leading investors such as Peter Lynch, Ben Graham and Warren Buffett. Here's a a look at four current buys in the oil sector.

Reese explains, "If you think you can predict investors' emotional states, or how an unprecedented economic crisis will play out, then go ahead and wait for the bottom. I suffer no such delusions, however.

"Rather than playing the risky game of bottom-calling -- which more often than not leads to investors missing the big initial push of a new bull run -- I'll continue to put money into undervalued stocks.

Continue reading Guru strategies find value in oil sector

Guru strategies find value in oil sector originally appeared on BloggingStocks on Wed, 15 Apr 2009 10:40:00 EST. Please see our terms for use of feeds.

Alcoa Inc. (NYSE: AA) started off the new earnings season with disappointing results that helped to stifle the recent rally. Was that enough of a sign of what's to come? No, probably not. But the earnings reports start to fly in earnest this week, which should provide a more detailed picture of the state of things.

Analysts surveyed by Thomson Reuters anticipate that some of the biggest names will prove to be holding their own. Google Inc. (NASDAQ: GOOG) is expected to post a profit of $4.91 per share, marginally higher than a year ago, and Johnson & Johnson's (NYSE: JNJ) expected $1.22 per share profit is slightly lower year over year. Even Mattel Inc.'s (NYSE: MAT) estimated loss of $0.13 per share is the same as in the year-ago period.

Continue reading The week in preview: The new earnings season ramps up

The week in preview: The new earnings season ramps up originally appeared on BloggingStocks on Sun, 12 Apr 2009 12:30:00 EST. Please see our terms for use of feeds.

• AFLAC Inc. (NYSE: AFL) reported better-than-expected earnings for the first quarter.
• Ambac Financial Group Inc. (NYSE: ABK) posted a wider-than-expected loss; shares hit new low.
• Amdocs Ltd. (NYSE: DOX) beat Q2 estimates on strength in the managed services businesses.
• Amphenol Corp. (NYSE: APH) beat expectations in the first quarter and raised its guidance.
• Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) posted a larger-than-estimated Q1 loss.
• Aptar Group Inc. (NYSE: ATR) posted record Q1 results and raised its Q2 guidance.
• Bank of America (NYSE: BAC) Q1 earnings plunged on further housing-related write-downs.
• Brinker International Inc. (NYSE: EAT) narrowly beat earnings expectations on cost cutting.
• Bristol-Myers Squibb Co. (NYSE: BMY) beat analysts' estimates for the first quarter.
• Credit Suisse Group (NYSE: CS) reported a wider-than-forecast loss on subprime-related write-downs.
• Cree Inc. (NYSE: CREE) earnings slipped while revenues soared 29%.
• Eli Lilly & Co. (NYSE: LLY) reported worse-than-expected Q1 earnings on discontinued product charge.
• Gannet Inc. (NYSE: GCI) beat low expectations as earnings and revenue continue slump.
• Hasbro Inc. (NYSE: HAS) posted better-than-expected Q1 earnings on international strength.
• JAKKS Pacific Inc. (NASDAQ: JAKK) missed Q1 expectations on restructuring and litigation costs.
• Kimberly-Clark Corp. (NYSE: KMB) beat EPS estimates by a penny, as revenue jumped 10%.

Continue reading Earnings highlights: Bank of America, Merck, Mattel, Phillip Morris, AFLAC and others

Earnings highlights: Bank of America, Merck, Mattel, Phillip Morris, AFLAC and others originally appeared on BloggingStocks on Sat, 26 Apr 2008 09:40:00 EST. Please see our terms for use of feeds.

Lufkin Industries (NASDAQ: LUFK) serves the heavy industry arena. Its oil field division manufactures, services and refurbishes oil field pumping units. It also provides computer control equipment for the units and operates an iron foundry to produce castings for new units. The company's power transmission segment provides gearboxes for industrial applications and makes parts for after-market service. The firm operates in North America, Latin America and Europe.

Lufkin pleased investors last week, when it reported Q1 EPS of $1.01 and revenues of $147 million. Analysts had been expecting $1.00 and $132.7 million. Management also guided Q2 EPS to $1.30-$1.40 ($1.20 consensus) and FY08 EPS to $5.10-$5.30 ($5.17 consensus). Backlog totals increased 45.2% from the year-ago quarter and 17.9% from the end of 2007.

Continue reading Lufkin Industries (LUFK): Shares define bullish 'flag'

Lufkin Industries (LUFK): Shares define bullish 'flag' originally appeared on BloggingStocks on Mon, 21 Apr 2008 11:10:00 EST. Please see our terms for use of feeds.

If you are ever called on to write a piece about vertical business integration, there is an interesting case in Lufkin, Texas. The firm provides oil well pumps, the gears to run them, the electronic systems to control them and the trailers to haul them.

Lufkin Industries (NASDAQ: LUFK) serves the heavy industry arena through three divisions. Its Oil Field segment manufactures, services and refurbishes oil field pumping units. It also provides computer control equipment for the units and operates an iron foundry to produce castings for new units. The company's Power Transmission segment provides gearboxes for industrial applications and makes parts for after-market service. Lufkin's Trailer segment manufactures and services various highway trailers for the freight-hauling market. The company operates primarily in the United States, Canada, Europe and Latin America.

The firm pleased investors last week, when it reported Q1 EPS of $1.17 and revenues of $148.10 million. Analysts had been expecting $1.05 and $146.1 million. Management also offered in-line guidance for Q2 and FY07 earnings.

Continue reading Lufkin Industries: Getting pumped

Lufkin Industries: Getting pumped originally appeared on BloggingStocks on Mon, 23 Apr 2007 15:05:00 EST. Please see our terms for use of feeds.