Concerning the current debate over executive bonuses, value investor Charles Mizrahi contents, "As a shareholder, I have the choice of becoming partners with more than 7,000 businesses on the American stock exchanges."

In his Hidden Values Alert he states, "I've found two companies with managers who are aligned with shareholders. Their compensation packages put them in the same boat as shareholders, and as an owner that is exactly where you want them to be."

Here, the advisor looks at insurance firm Markel Corporation (NYSE: MKL) and business supplies retailer Staples (NYSE: SPLS).

Continue reading Shareholder-focused managements: Markel (MKL) & Staples (SPLS)

Shareholder-focused managements: Markel (MKL) & Staples (SPLS) originally appeared on BloggingStocks on Mon, 09 Mar 2009 16:20:00 EST. Please see our terms for use of feeds.

The focus of last week's preview was on oil and energy companies, and we saw that big oil had a good week, reporting better-than-expected results and record profits driven by high prices in the third quarter. Energy-related companies are well represented again this week and expectations in general remain high.

Early in the week, analysts surveyed by Thomson Financial anticipate that the big earnings gainers will include EOG Resources Inc. (NYSE: EOG), Anadarko Petroleum Corp. (NYSE: APC), and Cimarex Energy Co. (NYSE: XEC), which are expected to post profits of $2.24 per share (up 64.7% from a year ago), $1.48 per share (up 52.7%) and $2.26 per share (up 61.1%) respectively. All three of them have offered positive surprises in recent quarters, and analysts on average recommend buying EOG and Anadarko. Other expected big earnings gainers early in the week include Forest Oil Corp. (NYSE: FST), Pioneer Natural Resources Co. (NYSE: PXD), Comstock Resources Inc. (NYSE: CRK), and MasterCard Inc. (NYSE: MA). The earnings of phosphates producer Innophos Holdings Inc. (NASDAQ: IPHS) are expected to have risen 92.3% to $3.37 per share. Innophos beat estimates in the previous quarter by a whopping 210%, and analysts have been impressed with Innophos's lack of debt and pricing gains despite the slowing economy, so, on average, they recommend buying IPHS.

Also early in the week, analysts expect Goodyear Tire & Rubber Co. (NYSE: GT), Kaiser Aluminum Corp. (NASDAQ: KALU), and Oshkosh Corp. (NYSE: OSK) to report that their profits fell 52.9% to $0.33 per share, 45.1% to $0.67 per share, and 41.2% to $0.67 per share, respectively. These companies have tended to beat estimates in recent quarters, and the consensus recommendations of analysts are to buy them. However, PMI Group Inc. (NYSE: PMI), one of the largest private mortgage insurance providers in the U.S., is expected to take another hit as the housing slump drags on. The California-based company is expected to have widened its net loss from $1.04 per share a year ago to $2.43 per share in the most recent quarter. Its shares are down 84.5% from a year ago, and have been trading recently near their 52-week low.

Continue reading The week in preview: Expectations remain high for energy and oil

The week in preview: Expectations remain high for energy and oil originally appeared on BloggingStocks on Sun, 02 Nov 2008 12:30:00 EST. Please see our terms for use of feeds.

Jay Winthrop of Douglass Winthrop Advisors LLC, a $250 million (assets under management) New York registered investment advisory firm, likes to buy stocks whose prices are so low that the odds of them benefiting from a positive surprise exceed those of losing from a negative one. Douglass Winthrop is ahead of the S&P year-to-date and has delivered "positive, tax-efficient results since inception in 2002." Through its 10% to 15% stock turnover, it offers investors lower expenses and taxes than its higher turnover "fast money" peers. As Winthrop summed it up: "Good things happen to cheap stocks."

Four stocks that he mentioned particularly caught my attention:

• Nestle S A (OTC: NSRGY). Nestle has benefited from its investment in emerging markets -- giving it a strong brand and distribution presences in countries experiencing rapid growth. A significant share of its profits are generated in developing markets. And its core food business is cheap when its strategic investments are backed out. Nestle trades at a mere 13x to 14 x operating earnings -- which is lower than the value of stocks in its peer group. Finally, Nestle is capitalizing on the profitable and growing health and wellness trend.
• Legg Mason (NYSE: LM). Legg Mason is a pre-eminent asset manager with $1 trillion under management. But its stock has declined due to temporary problems. Its Value Trust fund -- which had long outperformed the market under its manager Bill Miller -- has had two sub-par performing years in a row. And it's had troubles integrating a merger with Citigroup Inc.'s (NYSE: C) mutual fund unit. Winthrop also thinks Legg Mason has been hit by the overall decline in financials. However, he argues, Legg Mason trades at 1% of assets under management which is far below the 2% industry average. And its valuation is much less than that of newly public alternative investment managers.

Continue reading Douglass Winthrop picks for 2008: Nestle, Legg Mason, Comcast, Markel

Douglass Winthrop picks for 2008: Nestle, Legg Mason, Comcast, Markel originally appeared on BloggingStocks on Sun, 16 Dec 2007 11:10:00 EST. Please see our terms for use of feeds.