Friday, November 25, 2011

Family Dollar Stores Earnings Cheat Sheet: Third Straight Quarter of Rising Profit

best shares to invest in 2012
24
Oct/11
Buy And Hold Isn’t Dead, Just Misunderstood
by admin under best forever stocks, best shares to invest in 2012, best stocks investments for 2012, best stocks to buy now for 2012, best stocks to hold 2012, best stocks to invest, Best stocks to invest in 2011, best stocks to invest in 2012, Best stocks to invest right now, best stocks to pick up, best way to invest in 2012, good stocks to invest in 2012, great stocks to invest in 2012, hot penny stocks for 2012, hot stocks for 2011, penny stock picks 2012, stocks to invest in 2012, top penny stocks for 2012

Every once in a while, a bunch of doomsayers pop up proclaiming the demise of buy and hold. This tends to happen more often during times of heavy volatility and uncertainty in the market, such as over the past few months. Some of these folks like to follow up with testaments to the superiority of whizbang new investment strategies, with names like “buy and watch” or “buy and monitor.” The problem isn’t that they’re wrong – on the contrary, they’re absolutely right. The problem is that the concept of “buy and hold” that they’re attacking is nothing more than a strawman. It’s easy to win when you’re dueling a scarecrow, because straw doesn’t fight back.

Let’s look at some articles here on SA that have been published recently: Investors Should Not Be Complacent About Dividend Champions, by James Kostohryz, and Why Picking A Stock To Hold Forever Is Folly: The Apple/Cisco Case, by Roger Nusbaum. First, let me say that Mr. Kostohryz and Mr. Nusbaum are both excellent writers who provide many articles of value to the investment community. I read both of them regularly and will continue to do so. However, both of the articles cited above pick on a premise that was never true to begin with: that the buy-and-hold investment style encourages investors to hang on to their stocks ad infinitum after they’ve bought them, without paying any attention to how the underlying businesses are doing.

The first and most important rule of buy-and-hold is to know your investments. That includes knowing when to get out. It’s very possible for traditional buy-and-hold investors who follow the school of long-term value investing to dump a stock one quarter after they purchased it. Their investment thesis may have been wrong. The fundamentals of the company may have changed. Unforeseen challenges to the business may have materialized. Such an action doesn’t diminish the validity of their strategy.

The “hold” of buy-and-hold refers to intent, not a guaranteed outcome. In this way, buy-and-hold investing is kind of like marriage. When we marry, most of us intend and hope to stay hitched for good. When long term investors buy a stock, we hope that the company will continue to grow and remain competitive forever. We select the partner/companies that have the best chance of making that hope a reality.

Of course, a lot of the time it doesn’t turn out that way. When you find out that the person you married is not who you thought they were, sometimes the best thing to do is to walk away. When you find out that the business you bought is no longer as strong a competitor as it once was, it may be time to cash in your chips and move to another table.

A character in a great movie once said, “On a long enough timeline, the life expectancy of everyone drops to zero.” The same is true of businesses. Of the original Dow stocks, only General Electric (GE) remains, and the financial crisis was a pretty close call for GE. Competitive destruction is one of the ugliest, but most fundamental forces of free market capitalism. It doesn’t matter how good you are, eventually someone better is going to come along to pick a fight with you, and then it’s game over. Nothing immunizes a company from the omnipresent threat of competitive destruction. Not a fat dividend, not a wide moat, not a fortress balance sheet. Eventually, all companies must die.

Buy-and-hold investors understand this, which is why the first principle of buy-and-hold is what it is. The more intimately familiar you are with a company’s operations, prospects, and financial health, the more likely it is that you’ll recognize when it’s time to take your money off the table. No one who actively practices buy-and-hold investing is under the delusion that they must hold on to their stocks forever no matter what happens. Some investors do a portfolio check-up more often than others, but the only investment vehicles that you can just dump money into and then forget about are index funds.

The only reason this is true is because index funds aren’t really completely passive. Every stock in an index was added there by a person, and stocks get removed when they no longer fit the profile of the index. When you buy an index ETF like the SPDR S&P 500 (SPY) or the iShares MSCI EAFE (EFA), you’re not holding on to your investments forever either, because the indexes get reshuffled every so often: new companies get added in, faltering companies get taken out. Index investors can afford to be less vigilant because they have the company behind the index acting as their portfolio manager. Investors who choose to pick their own stocks benefit from no such proxy.

If you’re not the kind of investor who has the time to stay on top of his portfolio 24/7, there are a lot of companies out there that operate under safeguards that make it less necessary to keep tabs on them all the time. Alcoa (AA) plies its trade in a capital intensive industry that poses formidable barriers to entry. Cisco (CSCO) has a huge war chest stuffed with cash, which helps to buffer against economic assault (though a technology stock is never really a safe investment no matter its balance sheet). Ford (F) benefits from great leadership that steered it through a market downturn that swallowed up most of its competitors. The more capable your managers are, the less risk you assume with a hands off approach to ownership. Finally, Intel (INTC) offers an unrivaled dividend yield compared to its industry peers that continues to grow, which means that by the time cracks begin to appear in the company’s foundation, investors may have already made their money back and more through dividends alone.

These companies may have an edge over their competitors in terms of stability, but there’s no such thing as a safe investment, only safer. You can call it buy-and-hold, buy-and-watch, buy-and-monitor, or whatever new catchphrase the news streams serve up, but in the end, it amounts to the same thing: buying great companies at a reasonable price, and letting them go when they’re no longer great companies at a reasonable price.

Times may change, but the fundamental ideas of value investing, of buy-and-hold investing will continue to remain relevant so long as people in society continue to make money by selling their stuff to other people.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in F over the 2next 72 hours.
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23
Oct/11
Infosys Up 6% As FYQ2 EPS Beats, Year View Tops Estimates
by admin under best forever stocks, best gold stock for 2012, best shares to invest in 2012, best silver stocks to buy 2012, best stocks investments for 2012, best stocks to buy now for 2012, best stocks to hold 2012, best stocks to invest, Best stocks to invest in 2011, best stocks to invest in 2012, Best stocks to invest right now, best stocks to pick up, good silver stocks 2012, good stocks to invest in 2012, great stocks to invest in 2012, hot penny stocks for 2012, hot stocks for 2011, stock selection for 2012, stocks to invest in 2012

Shares of Infosys (INFY) are up $3.34, or 6%, at $56 after the company this morning beat fiscal Q2 earnings per share estimates, and forecast Q3 profit ahead of expectations, and projected the year’s results ahead of consensus.

Revenue in the three months ended in September rose 17% to $1.75 billion, yielding EPS of 72 cents. Analysts had been modeling $1.75 billion and 69 cents.

CEO S.D. Shibulal remarked that the “global macroeconomic environment is still uncertain,” and that it “is and should be a concern for the IT industry.”

For Q3, the company sees revenue in a range of $1.8 billion to $1.84 billion, and EPS of 79 cents to 80 cents. That is a little light on the top line compared to the average $1.85 billion estimate, but ahead of the average 75-cent EPS estimate.

For the year, the company sees revenue of $7.1 billion to $7.2 billion, and EPS of $3.02 to $3.06. That is ahead of the average estimate for $7.1 billion and $2.88 per share.
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22
Oct/11
Family Dollar Stores Earnings Cheat Sheet: Third Straight Quarter of Rising Profit
by admin under best shares to invest in 2012, best stocks investments for 2012, best stocks to buy now for 2012, best stocks to hold 2012, best stocks to invest, Best stocks to invest in 2011, best stocks to invest in 2012, Best stocks to invest right now, best stocks to pick up, best way to invest in 2012, good stocks to invest in 2012, great stocks to invest in 2012, hot penny stocks for 2012

S&P 500 (NYSE:SPY) component Family Dollar Stores Inc. (NYSE:FDO) reported its results for the fourth quarter. Family Dollar Stores operates more than 6,600 retail discount stores across the U.S., offering consumables, home products, apparel accessories, seasonal and electronics.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Family Dollar Stores Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the discount store rose to $79.8 million (66 cents per share) vs. $74 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 8% from the year earlier quarter.

Revenue: Rose 9.1% to $2.13 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FDO beat the mean analyst estimate of 63 cents per share. Analysts were expecting revenue of $2.12 billion.

Quoting Management: “A year ago we launched an ambitious, multi-year plan to accelerate revenue growth, expand operating margins and optimize our capital structure, and I am pleased to announce that we have executed well against our plans in a very difficult operating environment,” said Howard Levine, Chairman and CEO.

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 6.5% and in the second quarter, the figure rose 9.8%.

Gross margin shrank 0.7 percentage point to 34%. The contraction appeared to be driven by increased costs, which rose 10.2% from the year earlier quarter while revenue rose 9.1%.

Revenue has risen the past four quarters. Revenue increased 7.8% to $2.15 billion in the third quarter. The figure rose 8.3% in the second quarter from the year earlier and climbed 9.5% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 91 cents versus a mean estimate of net income of 94 cents per share.

Competitors to Watch: Dollar General Corp. (NYSE:DG), 99 Cents Only Stores (NYSE:NDN), Dollar Tree, Inc. (NASDAQ:DLTR), Big Lots, Inc. (NYSE:BIG), Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), Fred’s, Inc. (NASDAQ:FRED), Costco Wholesale Corp. (NASDAQ:COST), Gordmans Stores, Inc. (NASDAQ:GMAN), and Amazing Savings, Inc (ODDJ).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Wednesday, November 23, 2011

Top Stocks of 2012 Aflac (AFL)

Top Stocks of 2012
“Aflac (NYSE: AFL) is best known in the U.S. for its ‘duck ads,’ but actually earns over 75% of its money from Japan,” says Dirk Van Dijk.
In selecting the stock as his top pick for 2012, the strategist for Zacks.com, recalls “Aflac happens to be an old favorite of mine, a stock that I first recommended back in 1991.” Here’s his current update.
“In the U.S., its policies are sold through employers on a payroll deduction, as part of companies ‘cafeteria plans’. They are pretty straight forward. If you get sick and can’t work, or are in the hospital, it pays out a set mount directly to the insured.
“It is thus not at risk for rising health care costs (but is if more people get sick). The U.S. unit was under some pressure as payrolls shrank, but with some positive news on the employment front, that should turn around.
“In Japan, once people get AFL insurance they don’t drop it (which is very important in the life and health insurance industry) with a persistency rate of 95%.
“The firm has a superb track record, but came under big pressure during the crash last year due to fears about its investment portfolio. I think those fears are being assuaged over time.
“It has already realized $1.7 billion (pre-tax) in investment losses. Some of those are not going to come back, like its holdings in Lehman Brothers and WAMU, but other parts of the holdings that were written down just might come back.
“Aflac did however write down $380 million as other than temporary losses in holdings of some Ford debt, and Ford has been doing much better of late, certainly much better that it looked back at the end of the first quarter when GM and Chrysler were going down for the count.
“The company has generated an ROE of 33.4% over the last 12 months, and its five year average ROE is 20.84% (it has leveraged up a bit, from having no debt to a still very manageable and conservative 22% debt to capital. As that happens AFL should return to its historic valuations.
“How much upside potential is that? A Lot. Over the last five years (which of course included the big sell o? last year) AFL’s P/E has averaged 15.4x.
“Based on 2010 earnings estimates it is going for 9.5x now, and 8.7X 2012 consensus estimates, and those estimates have been rising.
“AFL also has a habit of beating the estimates. It has done so the last three times out, and in 17 of the last 28 quarters, with only five disappointments.
“AFL currently yields 2.4%, which is nice. It has however, increased that dividend in each of the last 27 years, and over the last 15 years it has done so at a compound annual rate of 20.7%.
“AFL happens to be an old favorite of mine, a stock that I first recommended back in 1991, and was a core holding for most of my tenure at C.H. Dean. I know the management team well from those days, and they are amongst the best I know in the industry.”

Sunday, November 20, 2011

3 Undervalued Tech Stocks to Buy Now

When investors see the words “undervalued tech stocks,” the first companies that jump to mind are probably the mega-cap giants like Cisco (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT). The large-cap space certainly has more than its share of cheap tech stocks, but a look into mid- and small-cap territory reveals other, less talked-about opportunities. Computer Sciences (NYSE:CSC), Lexmark International (NYSE:LXK), and China Digital TV (NYSE:STV), are three such stocks that deserve more attention than they receive.

Computer Sciences

Shares of CSC, an IT-outsourcing company, have been pummeled from a February high above $56 to $37.20 on Wednesday. The stock has been hit by less-than-stellar earnings results and concerns that the U.S. government’s perilous fiscal situation will weigh on the 39% of CSC’s business that comes from federal contracts. That’s undoubtedly a legitimate worry, but also one that is well-known at this point. At 7.3 times 2012 estimates (and a price-to-earnings-to-growth ratio of 0.9) and a share price sitting at 0.8 times book value, it appears that the bad news is fully discounted in the stock. Two other key points regarding CSC: first, the stock yields 2.2% – much better than you’ll find with the average large-cap tech stock. Second, the company is cash-rich and is frequently mentioned as a target of a buyout. Betting on a takeover is always a dicey proposition, but CSC offers investors a solid risk-reward tradeoff even without the benefit of a buyout.

Keep in mind: The last time CSC’s P/E was at this level, the stock traded up 25% in less than two months.

Lexmark International

A maker of printers, ink, and imaging products, Lexmark has seen its shares come under heavy selling pressure since late 2010 – a trend that wasn’t helped by its May earnings miss. While the printing business is indeed in gradual decline, it may finally be time to say “enough is enough” regarding the downturn in Lexmark’s share price. After hitting a high above $47 in mid-October, the stock now stands at $28.62. At this level, the stock trades at forward P/E of less than 7x, and removing the net cash of $7 a share (about a quarter of its market cap) on its balance sheet brings the P/E below 5.5x. A low P/E can be a trap when growth is slowing, of course, but the company’s core ink business continues to generate substantial free cash flow. And like CSC, Lexmark has the added benefit of being a strong candidate for an eventual takeover.

Keep in mind: The recent selloff has driven LXK’s valuation to its lowest level in history.

China Digital TV

The smallest of the three companies discussed here, China Digital could offer big potential to patient investors. The company makes smart cards that allow the conversion of an analog signal to digital. A boring business perhaps, but consider that China is the world’s largest TV market with 377 million viewing households. Of these, 187 million have cable and only 90 million currently have a digital signal. This adds up to a stellar growth opportunity for a company with no debt and over 70% of its market cap accounted for by the $214 million of cash on its balance sheet. The stock trades for less than 7x 2012 earnings estimates and a PEG of just over 0.4. Chinese stocks are not without risk, as 2011 has taught us, but patient investors who tune into STV may be in for quite a show.

Keep in Mind: Like LXK, CSC trades at an all-time low P/E.

Technology investing has been no picnic for investors thus far in 2011, but these stocks provide a compelling margin of safety in the event of further volatility in the months ahead.

Thursday, November 17, 2011

Best Stocks to Invest in Right Now

Many experts are saying that the stock market is cheap right now. This includes great investors like Warren Buffett who thinks that equities are cheap. That is prompting a lot of investors to find the best stocks to buy right now as the market is still cheap. That is of course unless you are part of the crowd that things there will be a contraction once the quantitative easing measures are over.

I’ve heard Target as a good stock to buy recently. Their fundamentals are strong. They are profitable and the rest of the financial statements show a pretty strong company. They also look like they could potentially be undervalued from doing a business valuation based on discounted cash flows.

Ford is another good company right now. They are a strong company and were able to bounce back after they refused government bailout money. They are profitable in an industry that is bouncing back as a whole. More and more people will start buying cars again, and they already have. There is a lot of pent up demand that will be released on this market and Ford is one of the strongest players to profit off of this move.

More of the best investment options would be to be in technology stocks as well. You can see the fastest trending ones will be the likes of Apple and Google. Also look for Facebook to come out as an IPO at some point down the line. They have made some moves recently that have indicated that they may be interested in going public.

The healthcare industry is also good as well. Find strong companies that are growing with lots of future potential market growth. These would be niche markets like elderly care or the retirement industry. But really, most healthcare companies that are strong and growing will be good as this rising tide raises the good ships in this sector.

Tuesday, November 15, 2011

After the Cloud: Top Tech Trends for 2012

Last year belonged to Apple (NASDAQ:AAPL). The company’s share price rose to almost $350 over the course of 2010, making the company the most valuable tech entity on the planet.

Even more significantly, Apple’s touchscreen portable devices defined the industry. Even as the iPhone continued to grow and the iPad’s popularity spurred competitors to build their own tablet PCs, Google (NASDAQ:GOOG) was able to surpass Apple in at least one regard: More people bought Android phones than other kind. That wealth was spread across multiple manufacturers like HTC and Motorola (NYSE:MMI), but it showed that smartphone technology was now a mass-market force.

If 2010 was the year of smartphones and tablets, 2011 is proving itself to be the year of so-called cloud-based services (accessing applications via the Internet) for those devices. Google Music, Amazon’s (NASDAQ:AMZN) CloudPlayer, and Apple’s iCloud are just three of the new cloud businesses that will open before the year is out, each one of them allowing access to whatever entertainment or stored information, like documents and pictures, without the need of a hard drive.

The question now: What technology trends will define 2012? Here are three contenders:

The smaller, cheaper smartphone

AT&T (NYSE:T) and Verizon (NYSE:VZ) may be talking about how faster data transfer speeds will keep the smartphone market humming over the next 18 months, but the real hot commodity will be feature-light, cheap smartphones that can compete with the best iPhone and Android devices available now. AT&T and retailers like Wal-Mart (NYSE:WMT) have had tremendous success selling older model iPhones for $50 with new contracts. A smaller iPhone intended for teenagers that sells for $99 and runs as smoothly as the current iPhone model will be even more popular. Unsurprisingly, Apple is said to be working on just such a device.

Internet Television

Google bet big on its Google TV service being one of its biggest hits in 2010, but poor reviews of the service itself and complete consumer disinterest in the two major devices it came packed in, Sony’s (NYSE:SNE) Internet HD TV and the Logitech (NASDAQ:LOGI) Revue, put the kibosh on the company’s ambitions. Google plans to take another shot, though, and cable providers like Time Warner (NYSE:TWX) and Comcast (NASDAQ:CMCSA) are exploring multiple ways to allow access to the same content over mobile devices that people can get in the living room. Whether it’s as a service or a new type of living room TV set-top box like the kind made by Google and Roku, Internet TV will come into its own in 2012.

Hybrid PCs

The PC market has had a rough 2011 so far, with PC sales dropping more than 1% over the first quarter. That doesn’t mean the industry is done for, however — it’s merely in a state of transition. Next year will bring the introduction of more low-cost PCs like Google’s Chromebook as well as PCs that offer more functionality in line with those in the iPad. Hewlett-Packard (NASDAQ:HPQ) has had modest success with its all-in-one touch screen Omni PCs. Apple will likely introduce its own version of the Omni next year. The industry-changer will be the company that introduces an affordable hybrid that can act as both a portable tablet and a feature-rich PC.

Saturday, November 12, 2011

Top Oil Stocks 2011/2012 – Top Oil Stocks to Buy 2011/2012

Oil Stocks to Buy 2011/2012- 2011/2012 Oil Stocks

Below is a list of my latest oil stock picks for 2011/2012. These 2011/2012 Oil Stock Picks are my favor stocks to buy and some of the stocks I will be trading personally. Last year, one of my top oil stock picks was Brigham Exploration (BEXP). BEXP stock went from $15 to $27 from July to December of 2010 and was one of my biggest stock gainers of the year. I feel 2011 will be a good year for stocks and the overall stock market. Oil in 2011 should hit $110-$120 which would make the oil stocks rally even higher.

Key Areas of Oil Exploration in 2011 – Eagle Ford Shale – Niobrara Shale – Bakken Shale – Permian Basin – Oil Discoveries are still going on in these fields and in 2011, more Oil Discoveries will be made. Keep an eye on the Chainman Shale – Cabot Oil & Gas (COG) mentioned in late 2010 that they are drilling for oil in the Chainman Shale. We also have Venoco (VQ) drilling the Monterey Shale in California. With that, here is a list of my best oil stock picks for 2011

#1 Top Oil Stock Pick 2011/2012 – Oil Stocks – Hyperdynamics Corporation (HDY) – While Hyperdynamics (HDY) is my top stock pick of 2010, it is a risky one. The company has no revenues and does not make any money but could be sitting on a very large pool of oil off the coast of Africa. Drilling for oil is expected to begin in December 2011. Hyperdynamics was headed into a downward spiral over the past couple years but changed the management team in 2010 who vowed to take the company in a new direction. Hyperdynamics has a very large prospective leased area off the coast of the Republic of Guinea. In November 2010, Hyperdynamics raised $30 million in a private placement from financial giant Blackrock (BLK) which will help in preperation costs to drill for oil in late 2011. Hyperdynamics did a few surveys and believe they could be sitting on billions of barrels of oil.

As for HDY stock in 2011, It is my top stock to buy and my best trading idea. I have been trading HDY since the stock was $1.60 in August 2010 and gave it a price target of $4 – $6 for 2011. HDY hit a high of $3.63 in October 2010 and continues to trade around $3.00 as we head into 2011. If everything goes as planned and the company does infact sit on top of a large oil pool, we could be looking at a $8-$10 stock by year end 2011 in my opinion. I gave it a target of $4 – $6 when the stock was hitting $2.60 just to be on the conservative side. Of coarse, if Hyperdynamics announces any delays or lesser oil reserves, all bets are off. Pullbacks below $2.50 should be a great buy if you are looking for an entry point. I currently own HDY stock for the long term and will buy more stock on pullbacks. If you have any questions or feel like discussing HDY stock, visit my HDY message forum thread.

#2 Top Oil Stock Pick for 2011 - Kodiak Oil & Gas (KOG) – Kodiak Oil & Gas was another huge stock gainer for me at the end of 2010. I bought KOG stock at $4.30 in mid November 2010 and sold between $5.00-$5.70 a month later. KOG went on to hit $6.69 a few weeks later. Kodiak Oil in Gas recently aquired additional acreage in the Bakken Shale. This acreage is in some of the best zones in the Bakken which includes the Three Forks Oil zone. When I originally bought KOG at $4.30, I placed a personal target of $8-$10 on it for 2011. I am sticking with this and feel the stock could even hit $12. A lot will depend on what oil does but ultimately the stock is going a lot higher. While I don’t own KOG right now, I plan to buy the stock on any major correction.

Thursday, November 10, 2011

Invest 2012: best stocks to invest 2012

As many experts suggest, maybe most of us not feel an immediate impact on the life after U.S. credit downgrade by S&P, but all of us can see a change in the future. So, invest best stocks 2012 to maximize you odds of return is necessary.

* The money manager and editor of The Oberweis Report suggests, “Take a look at American Superconductor Corp. (NASDAQ: AMSC), my choice for the top stock idea for 2012”.

The bulk of AMSC business today comes from the wind power industry, as it designs wind turbines and sells turbine electrical systems that can be customized for each customer. AMSC is the leading provider of electrical components to China, US and Korea. The proof is in the pudding, of course. Amidst a weak economic backdrop, the company grew revenues by 85% in their latest reported quarter as they announced their third consecutive quarter of profitability.

* “Annaly Mortgage Management (NYSE: NLY) is our favorite investment idea for 2012,” says Jack Adamo.

The company uses modest leverage — about half what banks use — to increase shareholder returns. With short-term rates likely to remain low for several years, Annaly’s interest-rate spread will be wide and profitable. The company has never had a losing year. “The market is still scared blind by anything that has the word “mortgage” attached to it; so, the shares, which would normally yield about 7%, now yield nearly 15%, and the dividend has been growing!

* AOL (NYSE: AOL), formerly America Online, is one of the most storied – and bloodied – names in the Internet sector,” says Bernie Schaeyer.

* “Asian stocks are also booming as China’s growth remains strong,” says Mark Skousen, who chooses AsiaInfo Holdings (NASDAQ: ASIA) as his top pick for the coming year.

* “Atlantic Power Corp. (Toronto: ATP.TO) sells power primarily to electric utilities in major U.S. markets under long-term contracts,” notes income specialist Carla Pasternak.

Wednesday, November 9, 2011

Top Stocks of 2012 Aflac (AFL)

Top Stocks of 2012
“Aflac (NYSE: AFL) is best known in the U.S. for its ‘duck ads,’ but actually earns over 75% of its money from Japan,” says Dirk Van Dijk.

In selecting the stock as his top pick for 2012, the strategist for Zacks.com, recalls “Aflac happens to be an old favorite of mine, a stock that I first recommended back in 1991.” Here’s his current update.

“In the U.S., its policies are sold through employers on a payroll deduction, as part of companies ‘cafeteria plans’. They are pretty straight forward. If you get sick and can’t work, or are in the hospital, it pays out a set mount directly to the insured.

“It is thus not at risk for rising health care costs (but is if more people get sick). The U.S. unit was under some pressure as payrolls shrank, but with some positive news on the employment front, that should turn around.

“In Japan, once people get AFL insurance they don’t drop it (which is very important in the life and health insurance industry) with a persistency rate of 95%.

“The firm has a superb track record, but came under big pressure during the crash last year due to fears about its investment portfolio. I think those fears are being assuaged over time.

“It has already realized $1.7 billion (pre-tax) in investment losses. Some of those are not going to come back, like its holdings in Lehman Brothers and WAMU, but other parts of the holdings that were written down just might come back.

“Aflac did however write down $380 million as other than temporary losses in holdings of some Ford debt, and Ford has been doing much better of late, certainly much better that it looked back at the end of the first quarter when GM and Chrysler were going down for the count.

“The company has generated an ROE of 33.4% over the last 12 months, and its five year average ROE is 20.84% (it has leveraged up a bit, from having no debt to a still very manageable and conservative 22% debt to capital. As that happens AFL should return to its historic valuations.

“How much upside potential is that? A Lot. Over the last five years (which of course included the big sell o? last year) AFL’s P/E has averaged 15.4x.

“Based on 2010 earnings estimates it is going for 9.5x now, and 8.7X 2012 consensus estimates, and those estimates have been rising.

“AFL also has a habit of beating the estimates. It has done so the last three times out, and in 17 of the last 28 quarters, with only five disappointments.

“AFL currently yields 2.4%, which is nice. It has however, increased that dividend in each of the last 27 years, and over the last 15 years it has done so at a compound annual rate of 20.7%.

“AFL happens to be an old favorite of mine, a stock that I first recommended back in 1991, and was a core holding for most of my tenure at C.H. Dean. I know the management team well from those days, and they are amongst the best I know in the industry.”

Monday, November 7, 2011

Best Stocks (multibaggers) to invest in 2011-2012

low PE, high EPS indian stocks 2011-2012, best Stocks to invest in 2011-2012, best penny stocks, best fundamental stocks, fastest growing companies,multibaggers of year 2011-2012

Below are the multibaggers of year 2011-2012 with good fundamentals and trading on low price and PE. Investor can keep the stocks for 18-24 months perspective.

1. Choksi Imaging Ltd

cmp – 55.00
PE ratio 4.52
EPS (Rs) 12.28 till Mar, 10
Sales (Rs crore) 38.61 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 3.35 Mar, 10
Last dividend (%) 20

2. Diana Tea Company Ltd

cmp – 23.00
PE ratio 4.82 14/09/10
EPS (Rs) 4.72 Dec, 09
Sales (Rs crore) 11.02 Jun, 10
Face Value (Rs) 5
Net profit margin (%) 13.03 Dec, 09
Last bonus 3:2 14/07/05
Last dividend (%) 10 31/03/10

3. Zenith Birla (India) Ltd

cmp – 16.00
PE ratio 6.83 14/09/10
EPS (Rs) 2.23 Mar, 10
Sales (Rs crore) 129.83 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 2.36 Mar, 10
Last bonus 1:5 24/06/10
Last dividend (%) 20 25/06/10

4. Shalimar Paints Ltd

cmp – 380
PE ratio 13.77 14/09/10
EPS (Rs) 26.44 Mar, 10
Sales (Rs crore) 82.73 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 2.70 Mar, 10
Last bonus 3:10 11/09/82
Last dividend (%) 75 03/06/10

5. Alfa Transformers Ltd

cmp – 37.00
PE ratio 26.84 13/09/10
EPS (Rs) 1.41 Mar, 10
Sales (Rs crore) 3.66 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 3.52 Mar, 10

6. DMC Education Ltd

cmp – 11.50
PE ratio 13.22 13/09/10
EPS (Rs) 0.81 Mar, 10
Sales (Rs crore) 3.21 Jun, 10
Face Value (Rs) 5
Net profit margin (%) 14.99 Mar, 09
Last bonus 1:1 14/05/07

7. Disa India Ltd

cmp – 1400
PE ratio 21.59 13/09/10
EPS (Rs) 65.30 Dec, 09
Sales (Rs crore) 18.57 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 13.30 Dec, 09
Last dividend (%) 2000 20/02/08

8. MVL Industries

cmp – 31
PE ratio 5.17 14/09/10
EPS (Rs) 6.34 Jun, 10
Sales (Rs crore) 134.60 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 2.71 Jun, 09

9. Medi-Caps Ltd

cmp – 83
PE ratio 7.41 14/09/10
EPS (Rs) 11.34 Mar, 10
Sales (Rs crore) 6.29 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 16.48 Mar, 09
Last dividend (%) 15 27/08/10

10. N R Agarwal Industries Ltd

cmp – 76
PE ratio 6.02 14/09/10
EPS (Rs) 12.71 Mar, 10
Sales (Rs crore) 113.87 Jun, 10
Face Value (Rs) 10
Net profit margin (%) 5.52 Mar, 10
Last dividend (%) 18 30/07/10

Saturday, November 5, 2011

Where To Buy Penny Stocks

Tips On Where To Buy Penny Stocks
For those not acquainted with what penny stocks are, these would be stocks offered at under $5 a share. The goal here is to procure the stocks at reasonable prices and sell them for over what they cost to buy. Some will purchase these stocks for long-term investments but most of the people wondering where to buy penny stocks will look towards trading.

Daytrading is the method of selling and purchasing stocks in the exact same day. It’s no secret that such an enterprise includes great jeopardy. Nevertheless many have conclusively proved that huge profits can be generated thru such stocks which are why they’re perennially commended to those hunting for something more dynamic in their trading ventures.

Again, this all does raise issues concerning where to buy penny stocks. The fast answer will be to get them from a trusty service that trades in penny stocks. The majority already know this. What they want is a suggestion for a service that trades in such stocks. These are 3 of the most well-known brokers that handle this type of :

E*Trade : Is there a rather more well-liked online trading site than E*Trade? The solution to that question can be discussed for hours. There are scores of glorious trading firms out there. Having said that, few have the ability to deliver the top quality service this company is understood to supply.

Again, there are lots of corporations on the market that confess the facility to offer low cost, high volume trades but few deliver at the same quality level as E*Trade.

Scottrade : you might say that Scottrade gives E*Trade a run for its cash so far as renown goes. Scottrade has definitely merited its reputation as a quality trading service. This is a trading service that takes many further steps to be certain that clients have accessibility to the trades they want to make at costs which will prove reasonable to them. Such a combo is surely a noble one and Scottrade definitely is merited of its positive reputation.

Zecco : Zecco won’t be as well called the other 2 trading services it is unquestionably a top resource for those wondering where to buy penny stocks. What drives folks to get penny stocks from this actual broker? Low transaction costs and prime quality shopper service would be among the 2 most cited reasons.

Naturally, there are much more than 3 brokerages which handle penny stocks. The key is to get a service that charges a fair rate mixed with top quality shopper service. Such a twin approach will definitely evoke and excite folks into making the required trades that may yield major returns on their investments.

Thursday, June 23, 2011

Standard Life Investments pulls out of money market funds

Money Markets, Standard Life Investments

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Standard Life Investments has confirmed it is to exit its money market funds following a review of is cash investment business.

A spokesperson for the company said the decision to review its money market funds offering ahead of potential changes to the way the sector is regulated.

According to Standard Life Investments, money market funds could be brought 'within the scope of banking regulations' under proposed regulatory changes.

The decisions decided to exit the constant net asset value (CNAV) funds business to concentrate instead on funds with more variable net asset value.

The company is set to develop proposals, which will allow current investors to continue in CNAV-valued investments with a manager operating within banking regulations.

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Blue Chip Bulletin: BAT warns government of black market risks

British American Tobacco

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British American Tobacco (BATS.L) has attacked government plans to ban the display of cigarettes in shops, warning it could actually increase the appeal to some social groups.

The tobacco giant made the incredible claim after lashing out at the UK government for increasing tobacco duties by two per cent above inflation last month, which the company said would encourage illicit trade.

Speaking at today’s annual general meeting, Richard Burrows, chairman of BAT, said one in four cigarettes in Ireland is illicit or counterfeit and said the government was right to freeze cigarette duty as a result.

Burrows warned the UK government that there is a real prospect of a black market grabbing hold of the British smoking population.

He added, ‘The problem does not stop with tax. There is no convincing evidence that banning the display of tobacco in shops, requiring generic packaging or banning cigarette ingredients will cut smoking rates and help public health.

‘Forcing cigarettes under the counter, making packs easier to counterfeit or changing the taste of consumers’ favourite brands are likely to drive smokes to the unregulated market, possible forever.

‘I think governments have forgotten that the more tobacco that is driven underground, the more smoking may appeal to the curious.’

At the same meeting, shareholders voted in a final dividend of 81 pence per share, taking the total for the year to 114.2 pence per share – an increase of 15 per cent on the previous year.

The company has also reintroduced its share buy back programme, which had been suspended for two years.

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Standard Life Investments pulls out of money market funds

Money Markets, Standard Life Investments

Related Articles

Top ten trades: Wednesday 27 April 2011 (all day) more >>

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Market update (PM): Aggreko surges on trading update more >>

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Blue Chip Bulletin: Barclays reports first quarter profit drop more >>

Top ten trades: Tuesday 26 April 2011 (all day) more >>

Standard Life Investments has confirmed it is to exit its money market funds following a review of is cash investment business.

A spokesperson for the company said the decision to review its money market funds offering ahead of potential changes to the way the sector is regulated.

According to Standard Life Investments, money market funds could be brought 'within the scope of banking regulations' under proposed regulatory changes.

The decisions decided to exit the constant net asset value (CNAV) funds business to concentrate instead on funds with more variable net asset value.

The company is set to develop proposals, which will allow current investors to continue in CNAV-valued investments with a manager operating within banking regulations.

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Tuesday, May 17, 2011

Allianz launch UK Absolute Return fund

Absolute return, Allianz Global Investors, Uk

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more >>

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more >>

Allianz Global Investors has launched the UK Absolute Return Fund to be managed by RCM UK chief investment officer Jeremy Thomas.

The fund will aim to deliver returns greater than cash or bonds but with less volatility than equities.

Under Thomas, the fund will make stock selections based on a two-to-three year time horizon and be made up of a long and a market neutral portflio.

Thomas said, 'Sound stock selection will be the key driver of this Fund.  Our investment approach has three key pillars: Quality, Growth and Valuation.

'We believe that, taken together, they can produce consistent absolute returns over the economic cycle and through both up and down markets.'

The fund will carry a 3 per cent initial charge for individual savings account (ISA) investors or 4 per cent through a direct investment.

The new launch will also carry an annual management charge of 1.25 per cent and have a minimum investment of £500 (£1,000 through an ISA).

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Top ten trades: Thursday 28 April 2011 (until noon)

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more >>

Top ten trades
Thursday 28 April 2011 (until noon)
Source: TD Waterhouse

TD Waterhouse view:
'AIM-listed Toledo Mining is a new entry in 3rd position of our customer buys table this morning after the stock moved from last night’s close of 27.85 to 30.64 by midday today.

'Whitbread is another new entry in our customer buys table in 5th position after announcing a 20 per cent increase underlying pre-tax profit for Q1 but warned that recent like-for-like sales growth had slowed. That said, the hotel and restaurant group also unveiled plans to expand its Costa Coffee and Premiere Inn businesses over the next year, potentially creating 2,500 new jobs.'

BUY
1. Barclays, 21.7 per cent
2. Solo Oil, 16.4 per cent
3. Toledo Mining, 14.1 per cent
4. Lloyds Banking Group, 9 per cent
5. Whitbread, 7.9 per cent
6. Nighthawk Energy, 7.4 per cent
7. BP, 6.2 per cent
8

Reasons to Buy Gold Stocks For 2011

I always get a real kick out of hearing that "the consumer is 70 percent of the economy," mostly because it gives me a chance to heap ridicule and scorn on whoever said it, and I say that the consumer is 100 percent of the economy!

Tuesday, May 3, 2011

VIDEO: Investing in agriculture

Agriculture, First State

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The Share Centre's Sheridan Admans and First State's Skye Macpherson discuss the case for investing in agriculture.

Admans, investment adviser at The Share Centre, said First State's Global Agri-business fund had recently been added to its fund buy-list, the Platinum 120.

He said ' Although this fund has a short history, it is managed by a team that has a wealth of experience managing natural resources.'

'Due to the increased strain on food production, climate change and population growth, the supply and demand story for investment in agriculture and associated businesses is providing a very strong investment theme.'
 

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Top Penny Stocks For 2011

Penny stock profits can be so fast — piling up in just weeks, days, or sometimes even hours — that the gains are like waking up one morning as a millionaire! That's why I call them "overnight" profits!

Sunday, May 1, 2011

Top Penny Stocks For 2011

Penny stock profits can be so fast — piling up in just weeks, days, or sometimes even hours — that the gains are like waking up one morning as a millionaire! That's why I call them "overnight" profits!

Saturday, April 30, 2011

Mortgage Applications Fall as Rates Hit Seven-Month Highs

Applications for U.S. home mortgages declined last week as home loan interest rates rose for a fifth consecutive week, to seven-month highs, an industry group said on Wednesday.

Market update (PM): ITV leads the pack ahead of long weekend

FTSE 100, ITV

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The biggest riser at the close of trading before the UK's extended bank holiday weekend was commercial broadcaster ITV (ITV.L).

The broadcaster saw share price rise by 4.5 per cent to 76p after analysts at Panmure Gordon reiterated its 'hold' status for the stock.

Standard Life (SL.L) continued with a strong showing increasing by 3.4 per cent to 226.6p, after this morning reporting strong sales and inflows during the first quarter of 2011.

International Power (IPR.L) saw its share price rise by 3.3 per cent to 330.6p, insurance group Legal & General (LGEN.L) added 3.1 per cent to 123.1p, while advertising and marketing group WPP increased by 2.8 per cent rising to 781p.

Whitbread (WBI.L) dropped 3.4 per cent to 1,678p after its preliminary results failed to impress investors.

AstraZeneca (AZN.L) dropped 3.3 per cent to 2,996p, while both Unilever (ULVR.L) and Shire (SHP.L) fell 2.6 per cent to 1,938p and 1,852p, respectively. Elsewhere Barclays (BARC.L) dropped 1.9 per cent to 282.1p. 

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Top Penny Stocks For 2011

Penny stock profits can be so fast — piling up in just weeks, days, or sometimes even hours — that the gains are like waking up one morning as a millionaire! That's why I call them "overnight" profits!

Mortgage Applications Fall as Rates Hit Seven-Month Highs

Applications for U.S. home mortgages declined last week as home loan interest rates rose for a fifth consecutive week, to seven-month highs, an industry group said on Wednesday.