Canadian Stocks For 2014: August 2013

Saturday, August 31, 2013

Here are few strategies to plan your finances

Below is the verbatim transcript of Mashruwala's interview with CNBC-TV18.

Q: It is the beginning of the financial year and our only hope is that people will use this opportunity to plan their finances as well as their taxes much in advance and not in March 2014, when the year ending comes. What would your strategy be in terms of people planning their finances; a lot of people get their increments around this time. Do you think it is good idea for employees to voluntarily opt for higher Employees Provident Fund (EPF) deductions?

A: It makes lot of sense because what happens is usually, whenever one has an increment or bonus or anything, retirement takes the backseat in the sense that people look at either splurging because of nearing summer vacations or people get into funding for their other goals. So, it makes sense to focus on retirement when one gets an increment and ensure that the additional amount that he will be getting gets deducted and added to the retirement corpus.

Voluntary contribution voluntarily to provident fund, usually companies prefer that the request is made at the beginning of financial year. So, if one has got an increment now then inform the HR department that he wants to make additional contribution to his provident fund.

One can do up to 100 percent of basic. Obviously that may or may not make sense but one may want to do it, put it on autopilot so that throughout the year, every month from the basic pay, there will be contribution happening to his voluntary provident fund.

Q: What is the rate of interest on this? Is there something like lock in period and if someone wants to withdraw then will you take a haircut on it?

A: Interest rates hover every year. The employees' provident fund organisation (EPFO) meets and the interest rates normally vary between 8-8.5 percent - that's number one. One can take out his corpus at the time of retirement however there are certain situations where he can withdraw interim. So, if there are situations like marriage in the family or home buying or there are some special situations where one is allowed to withdraw.

In terms of tax implications, contribution to provident fund is tax free, the growth is tax free and when one takes that money out, there is also a tax benefit. In fact, public provident fund is one more option where one can contribute. There has been some reduction in rate of interest there by 0.1 percentages. There is another option one can consider but here, generally, people tend to keep money till end and they only take it out towards the retirement. So, only when one retires, he should take out money and that is a prudent strategy.

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Friday, August 30, 2013

Uncommon Jobs For Your Finance Degree

When it is time for college students to decide their majors, the vast majority choosing to major in finance (or economics) do so in the hope of securing high-paying and relatively stable employment after graduation. Many seek career opportunities with banking institutions, insurance companies and Big 4 accounting firms. Most finance (or economics) undergrads and MBAs have investment banks, hedge funds, management consulting and private equity at the top of their employment priority list - mostly because they typically pay more and carry a relatively high level of prestige.

Unfortunately, there are far more students than opportunities available in the most desirable financial fields. The majority of finance students, and many MBAs, have to weigh in on the prospect of working at one of the departments of a company, a commercial bank, insurance company, accounting firm or small consulting shop (i.e., marketing, supply chain, etc.). But just because you can't land a glamorous finance job - or don't want to - doesn't necessarily mean you don't belong in this major. Read on for some uncommon jobs in finance that you might want to consider.

When Finance Doesn't Suit You
Finance isn't for everybody and, over time, people and interests change. Don't think that you need to work in the area you obtained your degree in for the rest of your career. Undergrad finance students may have been exposed to, and affected by, other classes that they take at university. Perhaps it is an acting class, a political science class, a volunteer opportunity, study abroad or community activism that exposed you to prospective and authentic interests beyond the world of finance.

Use these experiences to guide your career choices. MBAs, who were once undergrads may have felt dishonest in working a few years in a job that they disliked or lacked passion on. Couple that with a competitive job market, and they too may seek a vocation more in tune with what they think could be their "true" calling.

"Non-Traditional" Jobs for the Left-Brained
If investment banking, hedge funds, management consulting or private equity are not viable options for you, consider matching your personal interests with your finance and business skill sets. Some examples include:

Sales/Business Development
Many finance majors gravitate toward technical positions within an organization such as finance, accounting, or even IT. Responsibilities that involve "soft skills" (or interpersonal communication and team work skills) are often beyond the comfort zone. Jack Welch, the former CEO of General Electric, recommends that every business professional should undertake at least one sales job in his or her career. A business development/marketing role allows you to understand your company's product and service offerings and be attuned to customers' preferences and sensibilities. Besides, if you want to rise up to executive ranks, you will sooner or later need to successfully acquire business development skills. Why put it off?

Look at partners at investment banks and consulting firms: most of their time is spent in client development. For those of you who are entrepreneurially deficient, this means bringing in revenue (money) to the office so that the office can afford to pay salaries (and put food on the table for everyone). Hedge fund managers and private equity partners are often on road shows raising capital and selling their investment theses to cynical high-net-worth investors, family offices and institutions. Private equity shops also spend a lot of time developing their relationships with groups that bring them deals (such as intermediaries and investment banks).

When you are a commoditized operation, you can bet there are many "soft interactions" involved. Business development skills are critical sooner or later in your career. The novice who shuns - or worse, looks down upon - a sales job eventually runs into his or her inability to be promoted beyond middle management.

Startup Company/Entrepreneurial Role
In your search for career opportunities, you might come across startups with interesting product or service offerings. As a caution, most startups fail within their first five years. However, a small company may offer a unique technology product or niche service offering that the marketplace is receptive to. Joining an entrepreneurial environment means you will have to rapidly execute a variety of different tasks such as administration, accounting, marketing and strategy. Based on your personality, you might enjoy this kind of environment as opposed to a much more structured, narrowly-defined job inside a larger corporation.

Analyst/Associate for Nonprofit Organizations
Some nonprofit company examples include the Ford Foundation, the Bill and Melinda Gates Foundation and others. The nonprofit sector is also in need of some financially savvy individuals - and what better way to feel good about yourself than to join a group that is trying to make the world a better place?

Teaching or Volunteering
Some companies allow you to defer your employment start date so that you work for one or two years at a nonprofit organization. In addition, there are plenty of executives at Fortune 500 companies - such as Bank of America, Goldman Sachs, Exxon Mobil and Coca Cola - who were once Peace Corps volunteers.

Finance Officer in the Military
These officers execute financial management duties including contract management, budgets and forecasting. If you consider this option early enough, the military may help to pay for your educational costs and guarantee employment after graduation.

Financial Analyst for a Government Agency
Some government examples include Homeland Security, the Department of Defense, Office of Management and Budget, Department of the Treasury, etc.

The Bottom Line
Finance students and MBAs do not have to sulk or succumb to depression if they don't receive employment offers from an investment bank, hedge fund, management consulting firm or private equity shop. If you are one of many who has to choose (or perhaps forge) a new direction, it could be a blessing that you escaped the rat race of 90-hour work weeks. Alternatively, you get the chance to align your personal interests by exploring vocations that turn out to be surprisingly fun or more fulfilling than the traditional route - whatever that means for you. You can also be in a better position for leadership opportunities at that organization - effective leadership, after all, requires authenticity.

However you define personal greatness and sense of worth may lead you to discover your calling - not simply your job offer. As the great Winston Churchill said, "Courage is rightly esteemed the first of human qualities, because, as has been said, 'it is the quality which guarantees the others.'"

Thursday, August 29, 2013

Hot Warren Buffett Stocks To Buy Right Now

How is it that Warren Buffett seems to be so good at picking stocks that increase their EPS year after year while automated screens tend to have much less success separating the companies that will continue to grow their EPS from those that simply had a good run for a decade or so but are now stalling out?

Someone sent me an email asking this very question.

I think it is helpful to look deeper than just the financial statements. Look inside the business. This seems to be something Warren Buffett does. The example I would give is Western Union (WU). This is a company where it looks like operating income is flat regardless of the economy:

2005: $1.27 billion

2006: $1.31 billion

2007: $1.32 billion

2008: $1.36 billion

2009: $1.28 billion

2010: $1.30 billion

Hot Warren Buffett Stocks To Buy Right Now: Synnex Corporation(SNX)

SYNNEX Corporation provides distribution and business process outsourcing (BPO) services to resellers, retailers, and original equipment manufacturers (OEMs) worldwide. The company operates in two segments, Distribution Services and Global Business Services (GBS). The Distribution Services segment distributes information technology (IT) products, including IT systems, peripherals, system components, software, networking equipment, consumer electronics, and complementary products in the United States, Canada, Japan, and Mexico. This segment also offers contract assembly services, such as systems design, build-to-order, configure-to-order, and assembly capabilities; value-added services comprising kitting, reconfiguration, asset tagging, and hard drive imaging for government and healthcare sectors; and specialized services in print management, renewals, and networking. The GBS segment offers a range of BPO services, including customer management, renewals management, back of fice processing, and IT outsourcing on a global platform comprising technical support, demand generation, and marketing and administration services through voice, chat, Web, email, digital print, and social media. SYNNEX Corporation also provides logistics services, such as outsourced fulfillment, virtual distribution and direct ship to end-users; financing services consisting of net terms, third party leasing, floor plan financing, letters of credit backed financing, and arrangements; marketing services comprising direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, database analysis, print on demand services, and Web-based marketing; and online and technical support services. The company was formerly known as SYNNEX Information Technologies, Inc. and changed its name to SYNNEX Corporation in October 2003. SYNNEX Corporation was founded in 1980 is headquartered in Fremont, California.

Hot Warren Buffett Stocks To Buy Right Now: Electrocomponents(ECM.L)

Electrocomponents plc distributes electronics and maintenance products to engineers in the United Kingdom, rest of continental Europe, North America, and the Asia Pacific. It offers electronics, electrical, industrial, and commercial supplies and services primarily under the RS brand, as well as under the Allied brand. The company sells its products through catalogues, trade counters, third party distributors, and ecommerce operations, as well as trading Web sites serving electronics and maintenance engineers. Electrocomponents plc was founded in 1937 and is based in Oxford, the United Kingdom.

10 Best Clean Energy Stocks For 2014: National Security Group Inc.(NSEC)

The National Security Group, Inc., an insurance holding company, provides various property and casualty, and life insurance products and services in the United States. It operates in two segments, Property and Casualty Insurance, and Life Insurance. The Property and Casualty Insurance segment primarily provides personal lines coverage, including dwelling fire and windstorm, homeowners, mobile homeowners, ocean marine, and personal non-standard automobile lines of insurance in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, and operates on a surplus lines basis in the states of Louisiana, Missouri, and Texas. The Life Insurance segment principally offers ordinary life, accident and health, supplemental hospital, and cancer insurance products in Alabama, Florida, Georgia, Mississippi, South Carolina, and Texas. The company markets its products through a field force of agents and career agents, as well as thr ough a network of independent agents and brokers. The National Security Group, Inc. was founded in 1947 and is based in Elba, Alabama.

Tuesday, August 27, 2013

Top Undervalued Companies To Own In Right Now

FactSet Research System (FDS) is a company in the publishing industry, and appears on GuruFocus��Buffett-Munger screener. This screener can be used to find companies with high quality businesses at undervalued, or fairly-valued, prices. Businesses on this screener are able to consistently grow revenue and earnings, maintain and expand profit margins while growing, and incur little debt during growth.

As of April 21, 2012, the company traded for $103.67, had a market cap of $4.45 billion, and had the following price multiples: P/E=25.5; P/B=8.2, and P/S=6.1.

Let's take a quick, broad look at the company to see why you might be interested in it.

What Do They Do?

Top Undervalued Companies To Own In Right Now: 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 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 Undervalued Companies To Own In Right Now: 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.

Top 10 Oil Companies To Watch 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 Undervalued Companies To Own In Right Now: 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 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."

Monday, August 26, 2013

Will News Corp Continue This Monster Surge?

With shares of News Corp. (NASDAQ:NWSA) trading around $33, is NWSA 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

News Corp. is a diversified global media company that operates in six segments: Cable Network Programming; Filmed Entertainment; Television; Direct Broadcast Satellite Television; Publishing; and Other. The company is involved in programming distribution through cable television systems and direct broadcast satellite operators; live-action and animated motion pictures distribution and licensing; operation of broadcast television stations and the broadcasting of network programming and in direct broadcast satellite business through its subsidiary, SKY Italia. News Corp. distributed information and entertainment through just about every medium possibe which reinforces a powerful presence. As companies and consumers continue to search for entertainment and information at increasing rates, look for companies like News Corp. to see rising profits.

T = Technicals on the Stock Chart are Strong

News Corp. stock has seen a consistent uptrend over the last several years. The stock is now trading at all-time high prices and sees no significant signs of slowing. 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, News Corp. is trading above its rising key averages which signal neutral to bullish price action in the near-term.

NWSA

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(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
News Corp. Options	20.29%	3%	2%

What does this mean? This means that investors or traders are buying a very minimal 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 very minimal 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 Increasing 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 News Corp.’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for News Corp. 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)	221.05%	140.48%	235.71%	273.83%
Revenue Growth (Y-O-Y)	13.54%	5.01%	2.22%	3.87%
Earnings Reaction	4.48%	-2.33%	1.6%	-0.21%

News Corp. has seen increasing earnings and revenue figures over the last four quarters. From these figures, the markets have been pleased with News Corp.’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has News Corp. stock done relative to its peers, Time Warner (NYSE:TWX), Viacom (NASDAQ:VIA), Walt Disney (NYSE:DIS), and sector?

	News Corp.	Time Warner	Viacom	Walt Disney	Sector
Year-to-Date Return	32.34%	27.05%	31.62%	33.30%	26.85%

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

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Conclusion

News Corp. provides entertainment and information through a variety of mediums to consumers and companies all around the world. The stock has been on a bullish run over the last several years and is now trading at all-time high prices. Over the last four quarters, earnings and revenue figures have been increasing which has pleased investors. Relative to its peers and sector, News Corp. has been a year-to-date performance leader. Look for News Corp. to OUTPERFORM.

Alan Fournier's Top Five Positions

Alan Fournier is the founder and manager of Pennant Capital Management. Prior to creating Pennant, Fournier spent some time working at David Tepper's Appaloosa Management managing global equity investments. During the second quarter Fournier sold out of four companies and made initial buys into eight new stocks. His second quarter portfolio held 46 stocks valued at $5.373 billion. The following five companies represent Fournier's top five positions.

TransDigm Group (TDG)

Fournier maintains his largest position in TransDigm Group where he holds 2,152,710 shares. His position in TransDigm represents 4.30% of the company's shares outstanding and 6.3% of his total portfolio.

During the second quarter, Fournier decreased his position in TransDigm by -2.23%. The guru sold a total of 49,000 shares in the second quarter price range of $144.18 to $162.48, with an estimated average price of $150.05. Since then, the share price has dropped about -7.2%.

Fournier's holding history as of the second quarter:

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The Company is a global designer, producer and supplier of engineered aircraft components for use on nearly all commercial and military aircraft in service today.

TransDigm's historical revenue and earnings growth:

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The Peter Lynch Chart suggests that TransDigm is currently overvalued:

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TransDigm Group has a market cap of $7.31 billion. Its shares are currently trading at around 139.18 with a P/E ratio of 32.80, a P/S ratio of 4.10 and a P/B ratio of 8.70. The company had an annual average earnings growth of 21.4% over the past five years.

DaVita Health Care Partners (DVA)

Fournier's second largest holding is in DaVita Health Care Partner! s. The guru holds on to 2,675,972 shares, representing 2.54% of the company's shares outstanding and 6% of his total portfolio.

During the second quarter Fournier reduced his position by -1.51%. The guru sold a total of 41,000 shares in the second quarter price range of $117.32 to $131.19, with an estimated average price of $124.88. Since then the price per share has dropped about -12.3%.

Fournier's holding history as of the second quarter:

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DaVita is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease, or ESRD.

DaVita's historical revenue and earnings growth:

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The Peter Lynch Chart suggests that DaVita is currently overvalued:

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DaVita Health Care Partners has a market cap of $11.7 billion. Its shares are currently trading at around $110.08 with a P/E ratio of 20.00, a P/S ratio of 1.10 and a P/B ratio of 2.90. The company had an annual average earnings growth of 16.5% over the past ten years.

GuruFocus rated DaVita the business predictability rank of 3.5-star.

Priceline.com (PCLN)

Fournier currently holds 329,800 shares of Priceline.com making it his third largest position. The guru's holdings make up 0.66% of the company's shares outstanding and 5.1% of his total portfolio.

Fournier upped his position in Priceline over the duration of the second quarter. Fournier increased his holdings 10.37% by purchasing a total of 31,000 shares in the price range of $683.57 to $842.50. The price per share has increased about 24.6% from the estimated average second quarter price.

Fournier's holding history as of the second quarter:

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Priceline.com is an online travel company that offers its customers a range of travel services, including hotel rooms, car rentals, airline tickets, vacation packages, cruises and destination services.

Priceline's historical revenue and net income:

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The Peter Lynch Chart suggests that Priceline is currently overvalued:

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Priceline has a market cap of $49.04 billion. Its shares are currently trading at around $952.15 with a P/E ratio of 31.30, a P/S ratio of 8.30 and a P/B ratio of 8.40. The company had an annual average earnings growth of 55.1% over the past five years.

NVR Inc. (NVR)

Alan Fournier's fourth largest holding is in NVR Inc where he maintains 259,302 shares. His position makes up 5.19% of the company's shares outstanding and 4.4% of his total portfolio.

Fournier hasn't changed his position in NVR since 2012Q4. The guru's holding history as of the most recent quarter:

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The Company's main business is the construction and sale of single-family detached homes, townhomes and condominium buildings.

NVR's historical revenue and earnings growth:

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The Peter Lynch Chart suggests that NVR is currently overvalued:

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NVR has a market cap of $4.16 billion. Its shares are currently trading at around $897.33 with a P/E ratio of 22.80, a P/S ratio of 1.30 and a P/B ratio of 3.50. The company had an annual average earnings growth of 6.9% over the past five years.

Huntington Ingalls! Industri! es (HII)

Fournier's fifth largest position is in Huntington Ingalls Industries. The guru holds on to 4,129,567 shares, representing 8.32% of the company's shares outstanding and 4.3% of his total portfolio. The guru did not make any changes to his holdings in Huntington over the second quarter.

Fournier's holding history as of June 30:

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Huntington Ingalls builds, overhauls & repairs ships primarily for the U.S. Navy and the U.S. Coast Guard. It is the nation's sole industrial designer, builder and refueler of nuclear-powered aircraft carriers, the sole supplier and builder of amphibious assault and expeditionary warfare ships to the U.S. Navy, the sole builder of National Security Cutters for the U.S. Coast Guard.

Huntington Ingalls' historical revenue and net income:

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The Peter Lynch Chart suggests that Huntington Ingalls is currently overvalued:

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Huntington Ingalls Industries has a market cap of $3.24 billion. Its shares are currently trading at around $65.13 with a P/E ratio of 20.10, a P/S ratio of 0.50 and a P/B ratio of 3.60.

Check out Alan Fournier's second quarter portfolio here.

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Top Warren Buffett Companies To Buy For 2014

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Saturday, August 24, 2013

More Retirement Savers Turning to Professional Advice: Vanguard

The total number of participants invested in a professionally managed allocation has more than doubled from 17% at the end of 2007, according to Vanguard’s recently released How America Saves 2013 report.

By 2017, Vanguard estimates that 55% of all participants will be entirely invested in a professionally managed investment option.

The annual report notes that in 2012, 36% of all participants in 401(k) retirement plans at Vanguard invested their plan assets in a professionally managed investment option, “dramatically improving their portfolio diversification and potentially making them more financially prepared for retirement compared with participants making investment choices on their own.”

Jean Young, co-author of How America Saves, said in a statement that “the number of participants completely turning their portfolio construction over to a professional, or obtaining advice from professionals, is an important trend in the potential future financial security of retirees. It represents a shift in responsibility for investment decision-making away from participants—many of whom may be inexperienced investors—to investment and advice programs that have been vetted by employers as part of their fiduciary obligations.”

The study also notes that 27% of all participants in 2012 were invested in a single target-date fund, 6% held a single traditional balanced fund, and 3% used a managed account advisory program. Also, 14% of participants who were offered an investment advice service through their plan adopted one.

The report also points out that average plan account balances rose by 10% in 2012, to $86,212, which reflects both “the effect of both ongoing contributions and market returns,” Vanguard says.

For participants with a balance at both the end of 2007 and the end of 2012—the worst five-year period in the markets in most people’s lifetimes—the median account balance grew 67% for the same reasons, Vanguard notes. “Nearly 90% of participants in this group saw their balances rise during this time.”

Hot Low Price Stocks To Watch For 2014

Steve Utkus, director of the Vanguard Center for Retirement Research, and co-author of How America Saves, says that “Some may look solely at plan account balances and underestimate the retirement readiness of Americans, saying that most of us still aren’t financially prepared for retirement.” However, he said, “when you look at the data comprehensively, the fact remains that many Americans are doing a good job accumulating private savings to supplement Social Security in retirement.”

Indeed, Vanguard says that many participants are “strong savers” in their plan. One-fifth of them saved 10% or more, 11% saved the maximum allowed, and 15% of participants over age 50 made catch-up contributions in 2012. “Taking into account both contributions made by participants and those made by employers to participants’ accounts, the average total savings rate was 10.5% in 2012,” the report notes.

However, one-third of participants contributed less than 4% to their plan. The average participant deferral rate was 7% in 2012, down slightly from the peak of 7.3% in 2007, the report states, which is largely due to the default contribution rates set by many automatic enrollment plans. “Although automatic enrollment raises plan participation rates and thus helps to ensure that more people overall save for retirement, the default rates are often set too low (3% or less) and thus pull down the overall average savings rate,” the report states.

Following are other highlights of the report:

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Check out Bogle Blasts Financial Industry, Calls Compensation a ‘Disgrace’ on AdvisorOne.

Sunday, August 18, 2013

Intuitive Surgical's Miss Looks Systemic And ...

It wasn't so long ago that Intuitive Surgical (Nasdaq:ISRG) was one of the cleanest growth stories in med-tech, as hospitals seemingly couldn't buy the company's surgical robots fast enough. Not only did Intuitive's daVinci robot come to all but dominate the prostatectomy market, but it was well on its way to taking significant share in hysterectomy as well.

Then the bad news began. From reports of surgical complications to multiple papers alleging that robotic surgery is not cost-effective, the news flow turned decidedly negative even as procedure counts continued to grow.

Now we have a major quarterly earnings miss to digest. While there are enough rumblings out there to suggest that it's not a solely Intuitive-specific issue and the procedure growth numbers still look decent, it looks this highly-valued stock is going back into the penalty box. I do believe Intuitive continues to offer above-average growth in the med-tech space, though, and the reality is that this stock only seems to get cheap when the news flow gets pretty scary.

A Big Miss For Q2, But Maybe Not Where You'd Expect
Intuitive Surgical doesn't miss very often, so the company's warning that second quarter earnings would significantly miss expectations is rare enough all on its own. Against an average estimate of about $630 million, Intuitive management is calling for $575 million in revenue in the quarter – a 9% miss that is also about 6% below the lowest estimate on the Street. Although the company didn't give EPS guidance, the net income number would suggest an EPS miss of similar magnitude assuming that the company didn't repurchase a huge number of shares during the quarter.

So what happened?

On first blush, it's tempting to think that Intuitive is finally falling victim to all of the bad press. The combination of more conservative prostate cancer management and the growth of new drugs like Johnson & Johnson's (NYSE:JNJ) Zytiga and Medivation's (Nasdaq:MDVN) Xtandi has been reducing prostatectomy volumes, and it sounds as though more conservative management is coming into vogue for hysterectomy cases as well. Couple that with a steady drumbeat of negative press about robot-assisted surgical complications and the cost-benefit of these procedures, and maybe hospitals are easing back on the reins.

I don't know about that. Although instrument/accessory growth of 18% suggests some softness in procedure volumes, it's not nearly enough to account for the miss.

On the other hand, US system placements plunged almost 30% to 90 (against an expectation of about 120 to 125) and total system placements declined (from 150 last year to 143) for the first time since the miserable capital equipment market of 2009.

SEE: A Checklist For Successful Medical Technology Investment

Is Intuitive Surgical No Longer Special?
That there is pressure in the med-tech cap-ex space is not exactly news. Radiation oncology Varian (NYSE:VAR) has been seeing iffy order patterns, and other vendors of permanent (or semi-permanent) equipment like General Electric (NYSE:GE), Philips (NYSE:PHG), and CareFusion (NYSE:CFN) have been getting more cautious. What is news is that it's impacting Intuitive Surgical – a company that heretofore often seemed impervious to the economic conditions that affect demand for hospital cap-ex.

But it may also not be an "either or" situation. As prostatectomy and hysterectomy volumes weaken, hospital administrators are likely not seeing nearly so much pressure to buy additional units. Likewise, pushback from payors may be leading hospitals to take more of a "start slow and go from there" approach with new units – making sure that a new daVinci system is fully utilized before shelling out the $1.5 million-plus for a new system.

The Bottom Line
Intuitive's stock is getting hammered today, but it won't really be clear what's going on in the market until we hear from others in the space like Stryker (NYSE: SYK) and Covidien (NYSE:COV) and get a better sense of what is going in terms of surgery volumes, cap-ex, and so on. What's more, even with this expected decline it is not as though Intuitive will look cheap by traditional metrics like EV/EBTIDA or P/E.

All of that said, more risk-tolerant investors who've been waiting for a chance to get into Intuitive shares may welcome this opportunity. I continue to believe that the Intuitive platform offers a compelling proposition for doing procedures on a minimally-invasive basis that would otherwise have to be done as open surgeries, with the attendant risks, pain, side-effects and so on. Accordingly, I think that so long as the utilization numbers hold up, this is a stock worth considering on weakness.

Saturday, August 17, 2013

Bull of the Day: Gap (GPS) - Bull of the Day

Everything appears to be going right for Gap, Inc. (GPS) as it has become the darling retailer of Wall Street. Left for dead during the Great Recession, shares of this Zacks Rank #1 (Strong Buy) are at 10-year highs as monthly comps continue to come in stronger than expected.

Gap is a famous American retailer with three main brands: Gap, Old Navy and Banana Republic. It also operates Athleta, the women's athletic and yoga retailer which is a big part of its strategy to expand into the lucrative athletic wear market.

It has over 3100 company operated stores and 300 franchise stores. Each brand also has its own web site.

Another Strong Month in June

Gap is one of the few retailers which still reports monthly sales results. On July 11, it reported June results which were better than the analysts had expected, with same store sales jumping 7% compared to flat sales the year before.

Other retailers' results weren't as strong as many blamed the cooler than expected weather.

Old Navy, its largest segment, led the quarter as sales rose 13% due to summer promotions and strength in flip flops and dresses. Gap also showed strength as its sales rose 5% due to strong sales in denim and shorts.

Only Banana Republic struggled, as global sales fell 1% due to softness in the women's side of the business. Athleta is not yet big enough to be broken out separately.

Earnings Estimates Revised Higher

But with strong June sales, the analysts moved to raise full year fiscal 2013 estimates. 9 raised estimates in the last 30 days. The 2013 Zacks Consensus rose to $2.73 from $2.63 in the last 90 days.

That is earnings growth of 17%.

Estimates for fiscal 2014 also have risen in the last 30 days. Earnings are now expected to jump another 11.8%.

Perfect Earnings Record

Gap will report July sales on Aug 8 and then will report quarterly results on Aug 22. The company has an impressive earnings track record. It hasn't missed in 5 years.

Shares at 10-Year High

Even though shares are at 10-year highs, the valuation isn't ridiculous. Gap is trading at 16.9x forward estimates. While this is above the average of the S&P 500 at 15.5x, it is under the company's 10-year average of 17.1x.

Fall fashions are now coming into the stores. On Aug 8, Banana Republic will launch the limited edition Issa London collection. This collection is highly anticipated. Issa London is best known for designing the Duchess of Cambridge's engagement dress in 2010.

For retailers, there's a lot riding on getting the fashion right. Gap has managed to do just that over the last several quarters.

If you're an investor looking for a retail play, Gap is a standout among its peers.

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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec.

Thursday, August 15, 2013

Best Heal Care Companies To Buy For 2014

Washington Post columnist Neil Irwin stopped by to discuss his book,�The Alchemists: Three Central Bankers and a World on Fire.�It's a great read on the history of central banks, including how they responded to the financial crisis and the challenges they face in the future.

There are many different approaches the Fed could take when it comes time to "turn the dial" on an exit strategy. In this video segment, Neil explains some of the factors they'll have to balance, with timing being perhaps the most critical. A full transcript follows the video.

Morgan Housel: To the extent that the housing bubble last decade is what got us here, to the extent that that was caused by interest rates being held too low back then, it seems like the history of getting it wrong -- having the tools to do it right, but not the will to do it right -- the history points to the idea that they will not get it right at the right time. What does that mean for us, over the next decade?

Best Heal Care Companies To Buy For 2014: M Health Ltd(MHL.AX)

Orca Energy Limited engages in the exploration and evaluation of minerals, oil and gas, and uranium opportunities in Australia and Kyrgyzstan. The company holds a 22.5% interest in the East Kokmoinok Uranium license in the Kyrgyz Republic; and 100% interest in three petroleum licenses covering an area of approximately 6,000 square kilometers located in the Kyrgyz Republic. It also holds licenses in the onshore Cooper Basin, South Australia. The company was formerly known as Monitor Energy Limited and changed its name Orca Energy Limited in August 2011. Orca Energy Limited was incorporated in 1985 and is based in West Perth, Australia.

Best Heal Care Companies To Buy For 2014: Omnicom Group Inc.(OMC)

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It offers services in traditional media advertising, customer relationship management, public relations, and specialty communications groups. The company?s services include advertising, brand consultancy, corporate social responsibility consulting, crisis communications, custom publishing, database management, digital and interactive marketing, direct marketing, directory advertising, entertainment marketing, environmental design, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts, healthcare communications, and instore design. Omnicom Group also offers investor relations, marketing research, media planning and buying, mobile marketing services, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, recruitment communications, reputation consulting, retail marketing, search engine marketing, and sports and event marketing services. It offers its services in the Americas, Europe, the Middle East, Africa, Asia, and Australia. The company was founded in 1944 and is based in New York, New York.

Advisors' Opinion:

[By Martin]
Omnicom Group provides advertising, marketing and corporate communications services. OMC recently traded at $37.1 and has a 2.7% dividend yield. OMC gained 3.7% during the past 12 months. The stock has a market cap of $10.4 billion, P/E ratio of 12.2 and forward P/E ratio of 10. The stock has total debt/equity ratio of 0.9 and Beta of 1.16.
[By Geoff Gannon] ��of course ��Berkshire Hathaway (BRK.A)(BRK.B). There is nothing wrong with owning huge stocks. There is something wrong with spending a lot of time picking them.

The best way to own huge stocks is to own an index fund. You only need one. So go with the S&P 500. Mutual funds are mostly a waste of time. There are a couple ��like Fairholme ��that really do make big, concentrated bets that don�� mirror index funds. And there are some other funds ��like Hussman Strategic Growth and Third Avenue Focused Credit ��that are structured to do something other than chase an index. I�� not sure those funds will perform well. I am sure they will give you diversity. They��l actually add something to your account ��beyond most mutual funds.

The biggest problem for most investors is bad timing. They are greedy when others are greedy and fearful when others are fearful. That�� a problem no matter what you invest in. It�� a problem in an index fund. It�� a problem in a mutual fund. And it�� a problem in a stock. The biggest challenge for most investors is getting over that. If you can be greedy when others are fearful and fearful when others are greedy ��you can make money in index funds, mutual funds and individual stocks. If not, you will always underperform the assets you invest in.

Can you do any better than that though? Can you actually improve on an index�� performance through stock picking?

Sure. And it�� not that hard. There are many strategies that outperform indexes. I��e mentioned a few before. I will once again mention an insanely simple one that will tend to work over time.

Rule #1: Never pay more than 8 times EBITDA for a stock.

Rule #2: Never buy a stock that has lost money in any of the last 10 years.

Rule #3: Never sell a stock within the first year of buying it.

Rule #4: Hold 10 stocks.

Rule #5: Hold the stocks with the longest history of consistent profits.

This is a very simple screen. It�� not ! optimal. Paying less than 6 times EBITDA would do better than paying less than 8 times EBITDA. But that would be more of an extreme value screen. Using 8 times EBITDA is just a common sense requirement never to pay an unreasonable price for a stock�� current earnings ��and never to be fooled by leverage.

Today, following those five rules would put you in these stocks:

Superior Uniform (SGC)

Friedman (FRD)

Stepan (SCL)

Frisch�� (FRS)

Eastman (EML)

Archer Daniels Midland (ADM)

Walgreen (WAG)

Weis Markets (WMK)

H&R Block (HRB)

John Wiley (JW.A)

Notice that 4 of those 10 stocks have a market cap under $100 million. This is shocking. I�� ranking the companies by years of positive earnings (special items ��which explain H&R Block�� losses ��are excluded). If a company earns money for several decades ��this group has tended to be profitable for over 30 years ��and it retains that money, it will end up with a big market cap.

Some of these companies have ended up with big market caps. Walgreen has a market cap over $30 billion. Archer Daniels is around $17 billion. Those are huge companies.

What is the advantage of being a huge company? There are some. For one, we know the business is ��or was ��growable. A lot of small companies stay small because their circle of competence is small. Paradise (PARF) is an over the counter stock. It has a market cap of $10 million. And it dominates the candied fruit market in the U.S. Why isn�� the company bigger?

The candied fruit market is tiny. Even with 100% market share ��no company in the industry could have a market cap anywhere near $100 million.

We��l use that $100 million market cap level as a cut-off. A lot of investors do. A lot of investors have never owned a stock with a market cap less than $100 million.

How much of the market are they missing? In dollar terms ��almost nothing. In company terms ��probably about 3! 5% of Ame! rica�� public companies.

When you limit yourself to stocks with a market cap over $100 million ��you are limiting yourself to the two-thirds of American companies that are best known and best followed by analysts, investors, the media, etc. You are ignoring the one-third of American companies that are obscure. That is the group I want to focus on today.

Is it just a question of market cap? Are the smallest companies in terms of market cap always the most obscure companies?

And what if you have a lot of money to invest? What if you can�� invest in stocks with a market cap of $10 million or $30 million? Does that mean you can�� buy obscure stocks?

Not necessarily. There are some big obscure stocks. The example everyone who knows obscure stocks will give you is Seaboard (SEB). This is a company with a $3 billion market cap. But it�� also a company that has been run the way obscure companies are run.

It is family controlled. It doesn�� split the stock ��shares go for $2,529. Most of the information you can turn up about the company is in the form of SEC reports, legal documents, and unauthorized (often unfriendly) news stories. Yahoo tells me no analysts cover Seaboard. But there were reports written on the company. So that�� a bit of an overstatement of the stock�� obscurity. Still, Seaboard fits the mold of a big, obscure stock.

What makes a stock obscure?

Think about when you hear about a stock. Probably it�� from some sort of news involving analysts, conference calls, press releases, acquisitions, and share issuances.

Imagine companies that aren�� followed by analysts, don�� hold conference calls, don�� put out press releases, don�� do (investment banker sourced) acquisitions, and don�� issue stock or bonds. Those companies will tend to stay out of the public eye.

There is one other ��very powerful but hard to find ��reason why a public company stays unknown. The shares were spread out weirdly. There are c! ompanies ! where shareholders got stock because of a bankruptcy, antitrust issue, tax issue, spin-off, etc. The further this event happened from Wall Street�� eyes ��the more obscure the stock will be.

Imagine a situation where trade creditors end up with common stock. That�� very different from a situation where distressed debt investors end up with common stock. From Warren Buffett�� career we have the example of the Blue Chip Stamps consent decree. That put Blue Chip stamps in the hands of grocery stores. Grocery stores are not exactly institutional investors. Buffett took advantage of this. He didn�� just buy Blue Chip shares. He even bought shares of grocers figuring he could convince them to swap Blue Chip shares for their own shares.

Look for shareholders who aren�� institutions. This is something you can screen for.

That brings me to the best way to find obscure stocks. Stocks you can�� screen for are harder to find than stocks you can screen for. Measures like EPS and book value are very easy to screen for. Excessive depreciation, understated asset values, tax assets, etc., are hard to screen for.

Look for companies that use short useful lives in their depreciation calculations, LIFO inventory accounting, carry old real estate, don�� have to pay taxes for a while, and use the equity method of accounting. Public companies that own parts of other public companies are always worth investigating.

This is the real work you want to do. But it�� too much to ask of most investors who have never invested in obscure stocks before. So, let�� talk about starting points. You want to end up thinking about all the things I��e mentioned ��family control, unusual accounting, ��idden��assets, etc. But where do you start? Where can you come up with lists of obscure stocks?

There is a new website called Unlistedstocks.net. It looks like it will be an excellent starting place. That site was started by the author of Oddball Stocks. I know Oddball Stocks is ! already a! great place to find obscure stocks. Read all of that blog�� archives. And keep a file with the names of obscure stocks covered on the blog. You can also read blogs like OTC Adventures and Whopper Investments in the U.S. And the Share Sleuth blog in the UK.

The other way to find obscure stocks is to screen for them. But you��l need a good screener. You should use StockScreen123. And you should create your own screens. Anything else is unlikely to do the job as well. So don�� skimp on your search for obscure stocks by trying to find a free screener. It�� not worth it.

The same goes for UnlistedStocks.net. It costs $300 a year. Or $75 if you contribute obscure stocks to the database. If you do the math on how much obscure stocks can earn you beyond an index fund ��you��l find that it�� probably worth the investment in that $300-a-year subscription.

Even a cheapskate like Warren Buffett has subscribed to some very expensive trade magazines since his partnership days. When you find an information source that suits your process ��it�� worth paying for it. Don�� be stupid about trying to save money. If it sacrifices return on investment ��it�� not worth it.

So what kind of screens should you run at StockScreen123? A simple low float search works well in turning up obscure companies. As a rule, float in share terms works best. Float in terms of market capitalization is trickier. And float in percentage terms can be low at some large, well known companies.

Why does float in terms of shares matter?

Share splits and share issuance are both signs of management that cares what the public thinks about the company.

You will find many fine companies where fewer than 5 million shares are in the hands of outsiders. A simple screen for such companies ��again putting the companies with the longest history of consistent profitability on top ��looks like this:

Weyco (WEYS)

Bowl America (BWL.A)

The Washington Post (WPO)
New Ul! m (NULM)

Atrion (ATRI)

Arden (ARDNA)

RGC Resources (RGCO)

National Presto (NPK)

National Technical Systems (NTSC)

Micropac (MPAD)

Utah Medical Products (UTMD)

There are some interesting stories on that list. Buffett watchers know The Washington Post. Ben Graham fans know National Presto. Anyone who follows net-nets is familiar with Micropac. If you��e a high ROC investor you��e probably come across Utah Medical Products (operating margins are over 30%). Atrion has one of the most interesting histories of value creation starting in the 1990s. And Arden is a grocer that earns a 15% return on equity in a bad year.

And that�� not a finessed list. All I did is eliminate all stocks with more than 5 million shares in the hands of outsiders. Then I sorted by years of consecutive profitability.

As you can see, it�� very easy to turn up stocks most people have never heard of.

You�� be much better off fishing in the pond of stocks with a float of 5 million shares or less than in a pond like the S&P 500.

One of the benefits of studying obscure stocks is that it teaches you a lot about business. Most investors can�� imagine a grocer that earns 15% to 30% on equity (while using less leverage than the big boys).

If you can�� understand a grocer with $400 million in sales ��how can you understand a grocer with $90 billion sales? Kroger (KR) is 225 bigger than Arden. Its competitive position is more tenuous. And its financial position is a lot more tenuous than Arden��.

It�� a lot harder to value the equity of Kroger than the equity of Arden. And yet more investors are trying to value Kroger�� stock price than Arden��. That�� a problem for the folks trying to value Kroger. And it�� an opportunity for the investors focused on Arden.

The other problem with ignoring obscure stocks is best illustrated with this quote from an analyst report:

��he Kroger Company is the only traditi! onal groc! ery store operator to consistently generate returns above its cost of capital.��br>
There are several grocers that earn their cost of capital. They just aren�� in the S&P 500.

Line up the return on capital lines ��for the last 10 years ��for Arden, Village (VLGEA), Weis, Harris Teet

5 Best Low Price Stocks To Buy For 2014: FSA Group Ltd (FSA.AX)

FSA Group Limited provides debt solutions and direct lending services to individuals and businesses in Australia. The company operates in three segments: Services, Home Loans, and Small Business. The Services segment offers debt agreement proposal preparation and administration, trustee, and other related services. The Home Loans segment provides mortgage finance, home loan broking, and mortgage management services. The Small Business segment offers corporate consultancy services, as well as bridging finance, factoring finance, and other related services. FSA Group Limited is headquartered in Sydney, Australia.

Best Heal Care Companies To Buy For 2014: United Parcel Service Inc.(UPS)

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

[By Mark]
UPS is a package delivery company. Cramer holds 600 shares of UPS stocks. UPS has a dividend yield of 3.20% and returned -6.68% since the beginning of this year. It has a market cap of $63.89B and a P/E ratio of 16.08. Jason Capello invested $253 million in UPS.

Best Heal Care Companies To Buy For 2014: Brookfield Residential Properties Inc (BRP)

Brookfield Residential Properties Inc. (Brookfield Residential) is a land developer and homebuilder.The Company entitles and develops land and builds homes for its own communities, as well as sells lots to third-party builders. It operates in three segments in North America: Canada, California and Central and Eastern U.S. Each of the Company�� segments specializes in lot entitlement and development and the construction of single-family and multi-family homes. As of December 31, 2011, Brookfield Residential controlled 108,197 lots. The Company became a public company on March 31, 2011, by combining the former business of Brookfield Homes Corporation (Brookfield Homes) and the residential land and housing division (BPO Residential) of Brookfield Office Properties Inc. into a single residential land and housing company, achieved through a merger and series of related transactions completed on March 31, 2011. Advisors' Opinion:

[By James K. Glassman]
A developer and homebuilder in the U.S. and Canada, Brookfield Residential Properties (symbol: BRP) is well positioned: More than 80% of its Canadian assets are in oil-sands-rich Alberta. The Calgary company has owned most of its land for years but carries the value of that property on its books at cost. If the shares traded in line with Brookfield's peers, they would triple.

Best Heal Care Companies To Buy For 2014: (ENTI)

Encounter Technologies, Inc. operates as an online video distribution and technology company that launches proprietary syndication platforms and offers a range of video technology and distribution services to other companies. The company develops and programs solutions for the online streaming, distribution, and networking, as well as for the social network and distribution platforms. It offers end-to-end technology and online marketing services, including design, build, hosting, and online marketing support. The company primarily operates GlobalAdOn.com, a patented technology for the yellow pages publishing industry. Its sales and management platform facilitates the sales and video production process for Internet yellow page publishers and their sales forces, as well as integrates and facilitates various processes, such as video shoot, sales rep, and publisher. The company was formerly known as Encounter.com, Inc. and changed its name to Encounter Technologies, Inc. in De cember 2009. Encounter Technologies, Inc. is based in Fort Myers, Florida.

Advisors' Opinion:

[By Stock Chaser]
Encounter Technologies, Inc. (PINK:ENTI) is up 75% at $0.0007 with an intraday high of $0.0008. Encounter Technologies announced today that they are in strategic discussions with Pegasus Tel, Inc.

Wednesday, August 14, 2013

8 Strategies for Women from Warren Buffett, the Feminist Capitalist

Looking out at the faces of people waiting to hear me discuss Warren Buffett's investment strategies recently, I asked myself the same, but always unanswered, question the world's greatest investor would himself ask: Where were the women?

Buffett knows one thing other men tend to overlook — being a feminist is good for the bottom line.

As an expert on Buffett's business strategies, I travel the world speaking at major investment conferences. Buffett speaks at none, except for one. When senior editor-at-large Carol Loomis, one of his most trusted advisors since 1966, invites him to speak at Fortune's Most Powerful Women Summit, Buffett says yes. Throughout the year, he also welcomes universities to send graduate students to question and learn from him, as long as one requirement is met: 30% or more must be female.

Raised with two beloved sisters by a strong-willed mother, and father to a brilliant daughter himself, Buffett's feminism isn't just emotional, it's pragmatic. He knows women own more than 10 million businesses with nearly $2 trillion in sales each year. Those are numbers he pays attention to, and invests in.

But Buffett is also highly aware that "winning the ovarian lottery," as he calls it, gave him opportunities for success his sisters could not have. As he says, the ovarian lottery is one thing you have no control over. It determines your sex, your race, your place and era of birth. Your IQ and eye color. Your temperament, your sense of humor and health risks. It also includes parental support or lack thereof, along with the income and occupations of your parents. Warren's father happened to be a stockbroker. Discussions about money and investments were a daily part of his life.

Being a numbers man, Buffett assigns probability to everything. He determined the probability of being born a white male in the U. S. in 1930, the year of his birth, was 2%. He had a 50% chance of being born female with the same IQ and talent, which wo! uld have made career options as limited as his sisters', when women were allowed to only be schoolteachers, nurses or secretaries.

Today, career options are virtually unlimited, and Buffett actively encourages women to increase their presence in the still-male dominated arenas of corporate leadership and investment. Feminism is not a new role for Buffett. He did, in fact, become a teacher — in his 20s, one of the first courses he taught at what is now the University of Nebraska Omaha was titled "Women and Investing."

So, if the "ovarian lottery" provided you a set of ovaries, here are eight strategies you can learn from Buffett to maximize your future.

1) Invest in your own expertise. Find a niche and focus on it. Buffett would agree with a statistic from Malcolm Gladwell's book, "Outliers," that it takes 10,000 hours of practice to become an expert. Doris Christopher was 34 years old when she invested $3,000 to start Pampered Chef in her basement in 1980. Over the next 20 years she invested thousands of hours developing a distribution network through home party sales before selling the company to Buffett for a cool three-quarters of a billion dollars. Over those two decades, she'd invested far more than 10,000 hours. Bill Gates, a close friend and board member of Buffett's, had the good fortune to be in eighth grade at a school that acquired an extremely rare item at the time — a computer. It became his obsession. Seven years later, he quit Harvard in his sophomore year to start his own company. By then, he'd invested far more than 10,000 hours. Buffett himself started at an even earlier age, making his first investment while in fifth grade. He made his first million by the age of 30, after investing more than 10,000 hours building his skill.

2) Invest in other women's success. Buffett puts his money where his mouth is, investing in successful companies that were begun or are headed by women.

Godiva Chocolates are known to probably every! woman in! America.. But Buffett didn't invest in Godiva, he invested in Mary See's candy. See's Candies use the very same ingredients as Godiva, except without preservatives, and sell for $17 a pound, a third of Godiva's price. Buffett bought the company in 1972 for $25 million. Today, See's Candies earns four times that, about $100 million a year, just between Thanksgiving and Christmas alone. See's seasonal kiosks in high-end shopping malls during the holiday season are often set up near a Helzberg Diamond Store, another Buffett-owned company that's led by a woman, CEO Beryl Raff.

3) Surround yourself with smart women and trust their advice. Since the death of his first wife, Susan, whom he always credited for making him a success, the most influential woman in Buffett's personal life is his daughter, Susie. Number two is Debbie Bosanek, his secretary since 1993. No one gets past Ms. Bosanek without her approval, and anyone who treats her poorly will never get his approval. Number three is his wife, Astrid, who was a close friend for nearly 30 years before their marriage in 2006. These are the three most influential women of the many he relies on. Carol Loomis, his long-time friend, editor and occasional bridge partner, is another. When they team up at cards, he says Loomis is "the strongest part of my game."

Buffett trusts women just as much for their business acumen. Berkshire Hathaway's board has 10 outside members, typical for a Fortune 500 company. What's not typical is that three of the 10 are women: Charlotte Guyman, a retired manager at Microsoft; Susan Decker, former president of Yahoo; and the most recent nominee, Meryl Witmer, principal of Eagle Capital Partners. Most Fortune 500 corporations only have one female member.

4) Plan your advancement strategy. It's a given you need to do deep research on any company you want to join. Look for companies where women excel. Seek out bosses who support women on their paths to success. I recently asked an atto! rney what ! her career advice would be to a young woman entering the legal profession. She said, "Choose a firm that has partners who have daughters." There's a saying that the fastest way to make a man a feminist is to give him a daughter. It's true. I want everything for my daughter that I would want for a son.

And don't assume that working for a woman will automatically be more advantageous. Sadly, some feel threatened by other women and will undermine them. Whether you'll be working for a male or female boss, find out the answer to two questions before making a career decision: What is the overall turnover rate, and what is the turnover rate of women, under that person's direction?

5) Pick the right role models and heroes. Study what they do that makes them successful. You should be able to distill their motivation down to a simple credo. For example, Russian immigrant Rose Blumkin started Nebraska Furniture Mart with one goal, to "Sell Cheap and Tell the Truth." Buffett bought the company in 1988 for $60 million. Each of the company's two current stores sell more than a million dollars of home furnishings and electronics every day. Susan Jacques is CEO of Borsheims, also owned by Buffett and the largest single-location jewelry store in the U.S. Her mission statement is "to provide exemplary customer service and the Midwest attitude" — "Midwest attitude" being another way of saying "tell the truth." Cathy Baron Tamraz at Business Wire, a wholly owned Berkshire Hathaway (BRK.A)(BRK.B) company and global leader in press release distribution, joined the company in 1979 and is now CEO. Part of the corporate mission statement reads, "We develop and maintain relationships ... based upon mutual respect and integrity."

"Pick out associates whose behavior is better than yours," Buffett has said, "and you'll drift in that direction."

6) Selling your integrity for short-term gain guarantees a long-term loss. Martha Stewart's name will be forever! connecte! d to two things: building a multi-million dollar business empire, and serving prison time for insider trading. She may have avoided losing $45,000 in the transaction, but she lost far more: she was forced to resign her position on the board of the New York Stock Exchange, sentenced to federal prison, fined $30,000, and paid penalties of nearly $200,000. Leona Helmsley, another multi-million-dollar business mogul, was convicted of tax evasion, assisting in the filing of false corporate and partnership tax returns, and mail fraud. Sandra Jackson, wife of former U.S. Rep. Jesse Jackson Jr., recently pled guilty to knowingly understating joint income on their tax returns. Buffett sums up it up succinctly: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."

7) Study Buffett to invest wisely in your own portfolio. Men and women alike often ask me to recommend works by Buffett that will help them become better investors. My answer is always the same: Read his annual letters to shareholders. The third edition of a compilation of those letters, "The Essays of Warren Buffett: Lessons for Corporate America," edited by Lawrence Cunningham comes out in March 2013. Buffett's annual letters dating back to 1977 are available at www.BerkshireHathaway.com, a no-nonsense but wise and entertaining website where Buffett quotes everyone from Mae West to Groucho Marx to Woody Allen. "You don't need to be a rocket scientist," he says. "Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ ... Risk comes from not knowing what you're doing."

8) Focus on the future. Buffett is firmly bullish on women in the economy. Last December during a BBC interview, Buffett recalled his sisters. "I saw two human beings with enormous potential and it was just assumed that they could be a nurse, they could be a secretary, they could be a flight attendant ... What a waste of human talent." He added, �! �Fifty pe! rcent of the talent in the country, we've pushed off in the corner for almost 200 years. Now we're getting to the point where we are using 100%. It makes me optimistic but we still have a way to go." Known as the Oracle of Omaha for his accurate predictions, Buffett firmly predicts that women will save the U.S. economy, and asserts that women's opportunities are key to his optimism. While panes have been broken in the glass ceiling, it hasn't come down completely. One day it will. Of the Fortune 500 companies, only 4% are headed by women. But remember this: 28 years ago there were zero.

Whether you want to head a Fortune 500 company, build your own business or grow your portfolio, remember: A woman of genius is admired. A woman of wealth is envied. A woman of power is feared. But only a woman of character can be trusted.

Robert P. Miles teaches the "Genius of Warren Buffett Seminar," April 29–May 1, at the University of Nebraska Omaha (http://cba.unomaha.edu/execmgmt/buffettgenius), and is director of the 10th Annual Value Investor Conference, May 2–3 (http://www.valueinvestorconference.com/). For more information, visit http://www.robertpmiles.com/

Saturday, August 10, 2013

Is PGT Going to Burn You?

There's no foolproof way to know the future for PGT (Nasdaq: PGTI ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Hot Safest Stocks To Own For 2014

Why might an upstanding firm like PGT do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.

Is PGT sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. PGT's latest average DSO stands at 30.2 days, and the end-of-quarter figure is 34.6 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does PGT look like it might miss its numbers in the next quarter or two?

The numbers don't paint a clear picture. For the last fully reported fiscal quarter, PGT's year-over-year revenue grew 30.1%, and its AR grew 30.7%. That looks OK. End-of-quarter DSO increased 0.5% over the prior-year quarter. It was up 23.0% versus the prior quarter. That looks like seasonality. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.

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Add PGT to My Watchlist.

Thursday, August 8, 2013

Top 10 Financial Companies To Own For 2014

The much-heralded return of the iconic Twinkie to store shelves this past week was met with a bit of a surprise: The golden cake had slimmed down.

According to the Associated Press, rather than the 42.5-gram/150-calorie tube of sugary goodness you remember, the new Twinkie being sold is a trim 38.5 grams and 135 calories. Now you don't have to feel so guilty about eating a pack or two in one sitting. You can tell everyone it's "diet food"!

In reality, the change occurred before cake maker Hostess went bankrupt. Apparently in the months leading up to seeking court protection because of its high legacy costs, the Twinkies maker sought to save money by stretching the ingredients thin. Now that they're in the hands of private equity firms Apollo Global Management and�Metropoulos, keeping the trimmed-down cake size makes good financial sense.

Top 10 Financial Companies To Own For 2014: New Hampshire Thrift Bancshares Inc.(NHTB)

New Hampshire Thrift Bancshares, Inc. operates as the holding company for Lake Sunapee Bank, fsb that provides banking and other financial services in New Hampshire and Vermont. The company accepts various deposit products, including business checking, money market accounts, savings, negotiable order of withdrawal, and certificate accounts. Its loan portfolio comprises real estate loans, real estate construction loans, consumer loans, commercial loans, and municipal loans. The company also sells brokerage, securities, and insurance products. It operates 28 branches in Grafton, Hillsborough, Sullivan, Chester, and Merrimack counties in west central New Hampshire; and in Rutland and Windsor counties in Vermont. The company was founded in 1868 and is headquartered in Newport, New Hampshire.

Top 10 Financial Companies To Own For 2014: Banca Ifis(IF.MI)

Banca IFIS S.p.A., together with its subsidiaries, provides financing and management assistance primarily to small and medium enterprises (SMEs) through factoring in Italy and internationally. The company offers various factoring services, including international factoring, recourse factoring, non-recourse factoring, maturity factoring, indirect factoring, and full factoring, as well as financing for SMEs. It is also involved in various leasing activities comprising nautical leasing, property leasing, equipment leasing, and vehicle leasing. In addition, the company provides Rendimax, an online savings account. It also serves large enterprises, business people, and private individuals. The company was founded in 1983 and is headquartered in Venice, Italy. Banca IFIS S.p.A. is a subsidiary of La Scogliera S.p.A.

Top 10 Warren Buffett Stocks To Buy For 2014: Citigroup Inc.(C)

Citigroup, Inc., a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment operates as a global bank for businesses and consumers with two primary businesses, Regional Consumer Banking and Institutional Clients Group. The Regional Consumer Banking business provides traditional banking services, including retail banking, and branded cards in North America, Asia, Latin America, Europe, the Middle East, and Africa. The Institutional Clients Group business provides securities and banking services comprising investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking; and transaction services consisting of treasury and trade solutions, and securiti es and fund services. The Citi Holdings segment operates Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool businesses. The Brokerage and Asset Management Business, through its 49% stake in Morgan Stanley Smith Barney joint venture and Nikko Cordial Securities, offers retail brokerage and asset management services. The Local Consumer Lending business provides residential mortgage loans, retail partner card loans, personal loans, commercial real estate, and other consumer loans, as well as western European cards and retail banking services. The Special Asset Pool business is a portfolio of securities, loans, and other assets. Citigroup Inc. has approximately 200 million customer accounts and operates in approximately 160 countries. The company was founded in 1812 and is based in New York, New York.

Advisors' Opinion:

[By Kathy Kristof]
To be sure, the stocks are still well below where they were before the financial crisis struck five years ago. For example, Citigroup (symbol C), which closed at $42.77 on April 4, sold for as much as $551 in 2007 (adjusted for a one-for-ten reverse split in 2011). But Citi may be the most promising of the big-bank stocks, says Raymond James analyst Anthony Polini. In the midst of a miserable 2012, during which Citi's profits dropped sharply, the New York City-based bank ousted its CEO last fall and rejiggered the entire management team a few months later. New CEO Michael Corbat takes every opportunity to stress that the bank is leaner and more focused on cutting costs and managing risks than ever, and that it is nothing like the company that posted massive losses a few years ago.

Citi's finances have improved so much that the company recently announced plans to buy back up to $1.2 billion worth of stock. Citi apparently isn't ready, however, to pay a meaningful dividend. The bank pays out only 4 cents per share, and the stock yields a piddling 0.1%.

Analysts expect Citi's earnings to grow about 12% annually over the next three to five years. Citi can goose profits by trimming unnecessary expenses, says Polini. "There is a lot of dry powder at Citi that some of the better-managed companies don't have," he says. The profit growth should boost the stock, which trades at 9 times estimated 2013 earnings of $4.61 per share. Polini expects the stock to hit $52 within a year.
[By Louis Navellier]
Citigroup provides consumers, corporations, governments and institutions across the globe with a range of financial products and services. A year-to-date drop of 46% for C stock has left shareholders shaking their heads throughout 2011.
[By Elissa]
Citigroup is an investment on the rise because the company owns more than 1.8 trillion dollars in assets, serves more than 200 million customer accounts, and conducts business in over 140 countries. It operates in the lines of consumer banking and credit, corporate banking, wealth management and securities brokerage.
[By John Grgurich]
The house that Pandit was unceremoniously ejected from closed the year up 39.64%, moving from $28.17 per share to $39.56. Citi also found itself in the summer doldrums, hitting its low point on June 4, as well: $24.82. It's high point was $40.17, reached on December 20, the same day Goldman's share price hit its yearly high point. There must be something in the water on Wall Street.

The scandal (of sorts) out of Citi in 2012 was CEO Vikram Pandit's abrupt exit from the bank in October, engineered by chairman Michael O'Neill. The two, apparently, didn't see eye to eye on many issues, but Pandit was still reportedly caught very much off guard by the corporate coup, as were shareholders.

Top 10 Financial Companies To Own For 2014: Bank Of Ireland(BKIR.L)

The Governor and Company of the Bank of Ireland provides banking and other financial services to small and medium-sized commercial and industrial companies in Ireland and internationally. The company?s products include interest and non-interest bearing current accounts; demand and time deposit accounts; savings accounts; loans to customers, including overdrafts, installment credit, and finance lease receivables; and mortgage loans for house purchases, home improvement loans, and secured personal loans, as well as term loans, working capital finance, and business and corporate loans. It also offers international asset financing, leasing, installment credit, invoice discounting, foreign exchange facilities, and interest and exchange rate hedging instruments; and executor, trustee, life assurance, pension, and financial advisory services, including mergers and acquisitions. In addition, the company provides treasury products and services, credit card, online and telephone ba nking services, private banking, and fiduciary services; and car, home, and life insurance products, as well as offers an ATM infrastructure and related services in various post office locations. Further, it provides foreign currency note services and international money payment services to various banking institutions throughout the United States and Canada. As of December 31, 2010, it operated 298 bank branches, including 254 branches in Ireland and 44 branches in northern Ireland, as well as 1,280 ATMs The Governor and Company of the Bank of Ireland was founded in 1783 and is headquartered in Dublin, Ireland.

Top 10 Financial Companies To Own For 2014: IP Group(IPO.L)

IP Group plc, Formerly known as IP2IPO Group plc, is a private equity and venture capital firm specializing in seed, early stage, and mature financing. The firm also provides seed capital financing to spin out companies from the universities. It seeks to invest in the life sciences, physical sciences, energy & renewables, medical equipment and supplies, intellectual property, pharmaceuticals & biotechnology, information technology & communications, and chemicals & materials. It also provides support for its university partners' intellectual property commercialization activities, as well as in the identification of intellectual property and in return takes equity positions in its portfolio companies. IP Group plc was founded in 2001 and is based in London, United Kingdom.

Top 10 Financial Companies To Own For 2014: Bank of the Carolinas Corporation(BCAR)

Bank of the Carolinas Corporation operates as the holding company for Bank of the Carolinas that provides commercial and consumer banking services to individuals and small-and medium-sized businesses primarily in the Piedmont region of North Carolina. Its deposit products portfolio includes business and individual checking accounts, savings accounts, negotiable order of withdrawal accounts, certificates of deposit, and money market checking accounts, as well as fixed interest rate certificates with varying maturities. The company?s loan products portfolio comprises consumer and commercial loans offered to individuals and small-and medium-sized businesses for various personal, business, and agricultural purposes, including term and installment loans, commercial and equity lines of credit, and overdraft checking credit; and commercial operating and working capital loans, residential mortgage loans, home equity lines of credit, other consumer loans, and loans secured by comm ercial real estate. It operates through 10 banking offices. The company was founded in 1998 and is based in Mocksville, North Carolina.

Top 10 Financial Companies To Own For 2014: Suffolk Bancorp(SUBK)

Suffolk Bancorp operates as the holding company for Suffolk County National Bank, a national-chartered commercial bank that provides domestic, retail, and commercial banking services, as well as trust services in Suffolk County, New York. The company offers various deposit products consisting of checking accounts, savings accounts, time and savings certificates, money market accounts, negotiable-order-of-withdrawal accounts, holiday club accounts, and individual retirement accounts. It also provides various secured and unsecured loans, including commercial loans to individuals, partnerships, and corporations; agricultural loans to farmers; installment loans to finance small businesses; automobile loans; and home equity and real estate mortgage loans. In addition, the company offers safe deposit boxes, and trust and estate services; sells mutual funds and annuities; and maintains a master pension plan for self-employed individuals? participation. As of December 31, 2010, i t operated 30 full-service offices in Suffolk County, New York. Suffolk Bancorp was founded in 1890 and is headquartered in Riverhead, New York.

Top 10 Financial Companies To Own For 2014: Gladstone Commercial Corporation(GOOD)

Gladstone Commercial Corporation operates as a real estate investment trust (REIT) in the United States. It engages in investing in and owning net leased industrial and commercial real properties, and making long-term industrial and commercial mortgage loans. The company leases its real estate properties to small businesses, as well as to large public companies. As of December 31, 2009, it owned 64 properties, and held 1 mortgage loan. The company qualifies as a REIT under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal tax to the extent that it distributes at least 90% of its taxable income to its shareholders. The company was founded in 2003 and is based in McLean, Virginia.

Top 10 Financial Companies To Own For 2014: Western Asset Global High Income Fund Inc (EHI)

Western Asset Global High Income Fund, Inc is a closed-ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. The fund is also co-managed by Western Asset Management Company, Western Asset Management Company Limited, and Western Asset Management Company Pte. Ltd. It invests in the fixed income markets across the globe. The fund invests in undervalued bonds of companies operating across diversified sectors. It seeks to invest in a portfolio of below investment grade fixed income securities, emerging market fixed income securities and investment grade fixed income securities. The fund employs quantitative analysis to build its portfolio. It invests in fixed income securities with an average credit quality of BB as per S&P and an average duration of 3.8 years. The fund benchmarks the performance of its portfolio against the Barclays Capital U.S. Aggregate Index, the Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index, and the JPMorgan Emerging Markets Bond Index Global. It was formerly known as Salomon Brothers Global High Income Fund Inc. Western Asset Global High Income Fund, Inc was formed on July 28, 2003 and is domiciled in the United States.

Top 10 Financial Companies To Own For 2014: The Herzfeld Caribbean Basin Fund Inc. (CUBA)

Herzfeld Caribbean Basin Fund Inc. is a closed-ended equity mutual fund launched by Thomas J. Herzfeld Advisors, Inc. The fund is managed by Herzfeld/Cuba. It invests in the public equity markets of the Caribbean Basin Countries and the United States. The fund makes its investments in stocks of companies operating across diversified sectors. Herzfeld Caribbean Basin Fund Inc. was formed on March 10, 1992 and is domiciled in the United States.