With shares of Wal-Mart (NYSE:WMT) trading around $78, is WMT an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Wal-Mart operates retail stores in various formats around the world. The company’s slogan, “Everyday Low Prices,” is also its pricing philosophy, under which it prices items at a low price every day. Wal-Mart operates in three business segments: the Walmart U.S. segment, the Walmart International segment, and the Sam�� Club segment. It�operates retail stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel stores, Sam�’s Clubs, neighborhood markets, and other small formats, as well as Walmart.com and Samsclub.com. Through its retail channels, Wal-Mart is able to provide a variety of products and services at very affordable prices to consumers and companies worldwide. For consumers and businesses looking for one location that contains a wide variety of products and services, Wal-Mart is the spot and will continue to be well into the future.
Best Services Companies To Watch For 2015: Diamondcorp PLC (DCP)
DiamondCorp plc is a United Kingdom-based diamond producer. The Company�� 74%-owned Lace diamond mine is located 200 kilometers southwest of Johannesburg in the Free State Province of South Africa. The project comprises the Lace kimberlite. Approximately 33 million tons of kimberlite have been outlined in the main Lace pipe between the 240 meter and the 855 meter level, containing an estimated 13.3 million carats of diamonds at an average estimated grade of 40 carats per hundred tons (cpht). Its subsidiaries include Diamondcorp Holdings Limited, Botswana Diamondcorp Limited, Lace Diamond Mine (Pty) Limited, which is engaged in diamond exploration, Soapstone Investments (Pty) Limited and DCP Exploration (Pty) Ltd. Advisors' Opinion:- [By Tyler Crowe]
Perhaps bigger players like Occidental were able to hog the limited takeaway capacity, but this won't be a good reason for slowed production very soon. Magellan Midstream Partners (NYSE: MMP ) and DCP Midstream (NYSE: DCP ) both have pipelines coming on line within the next couple of months that will have takeaway capacity of 225,000 and 350,000 barrels per day, respectively. Once these pipelines come on line, there should be much more room for LINN's production.�
- [By Aimee Duffy]
Winners
Buckeye Partners (NYSE: BPL ) �trounced analyst expectations on the top and bottom lines, and recorded a distribution coverage ratio of 1.21 times payouts, allowing the partnership to boost its distribution. DCP Midstream Partners' (NYSE: DCP ) �distributable cash flow popped 40% year over year, and the partnership completed its Eagle Ford dropdown transaction with parent company DCP Midstream, boosting its stake in the lucrative South Texas shale play. Boardwalk Energy Partners' (NYSE: BWP ) �operating revenue and net income increased 5% and 10% year over year. More importantly, distributable cash flow popped 24%, though the partnership elected to hold the distribution flat quarter over quarter. Energy Transfer Partners (NYSE: ETP ) �had no distribution increase either, but things are looking better than they have in a while. Production in the Eagle Ford Shale is driving growth at ETP, and the partnership is reorganizing into an operation that is stronger and more diverse than ever before.
Given the current state of U.S. energy production, most midstream companies are winners these days. Kinder Morgan Energy Partners (NYSE: KMP ) got things started off on the right foot, reporting in mid-April and beating expectations on revenue and EPS. Here are some highlights from around the industry:Very strong results here, now let's take a look at some midstream companies that didn't perform as well.
10 Best Low Price Stocks To Own For 2014: Select Medical Holdings Corporation(SEM)
Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. The company?s Specialty Hospitals segment offers long term acute care hospital services and inpatient acute rehabilitative hospital care. This segment provides services for various medical conditions, such as respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders, and cancer. As of December 31, 2011, it operated 110 long term acute care hospitals and 9 inpatient rehabilitation facilities in 28 states. The Outpatient Rehabilitation segment operates clinics; and provides physical, occupational, and speech rehabilitation services. It offers medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools, and worksites. This segment also pro vides specialized programs, such as functional programs for work related injuries, hand therapy, and athletic training services. As of December 31, 2011, it operated 954 outpatient rehabilitation clinics in 32 states and the District of Columbia. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.
Advisors' Opinion:- [By Keith Speights]
Patricia Rice
Patricia Rice has held the position as president of Select Medical (NYSE: SEM ) since 2005. She also served as chief operating officer for the company from 2005 until 2011. Select Medical is a leading provider of�long-term acute care, inpatient medical rehabilitation, outpatient physical therapy, and contract therapy. The company generated revenue of nearly $3 billion in 2012. - [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Select Medical Holdings (NYSE: SEM ) , whose recent revenue and earnings are plotted below. - [By Ben Levisohn]
Overvalued companies include MWI Veterinary (MWIV) and�Stericycle (SRCL), while companies with attractive valuations include Cardinal Health (CAH), Selected Medical (SEM). He’s not a fan of Intrexon (XON) but calls�Aratana (PETX) a “hidden gem.”
- [By Sean Williams]
What: Shares of Select Medical (NYSE: SEM ) , an operator of specialty hospitals and outpatient rehabilitation centers, dipped as much as 14% after the company reported disappointing first-quarter results and provided an uninspiring full-year outlook.
10 Best Low Price Stocks To Own For 2014: Woori Finance Holdings Co Ltd (WF)
Woori Finance Holdings Co., Ltd., incorporated on March 27, 2001, is a financial holding company. The Company serves over 24 million corporate and retail customers with a range of financial services, including commercial banking, credit card, capital market, international banking, wealth management and bancassurance services. The Company�� domestic network consists of more than 1,300 branches and 8,500 cash terminals. Its banking subsidiaries include Woori Bank, Kwangju Bank and Kyongnam Bank. Its non-banking subsidiaries include Woori Investment & Securities, Woori AVIVA Life Insurance, Woori CS Asset Management, Woori Financial, Woori Finance Information System, Woori F&I and Woori Private Equity.The Company established a new wholly owned subsidiary, on March 16, 2011. The new entity is mainly engaged in banking business.
The Company�� products in retail banking include Low-Carbon Green Deposit, Mommy Relief Deposit, Plus Savings Deposit, Plus Revolving Time Deposit, Solid Success Time Installment Deposit and Happy Time Installment Deposit. Mommy Relief Deposit facilitates response to locate missing children; the fingerprints of children under 10 are digitally recorded by the bank and made instantly available nationwide if the child should go missing. Plus Savings Deposit is a fixed-interest installment-based time deposit account that offers preferential rates to customers who also apply for credit card products. It also provides bonus services for special occasions and foreign travel. Plus Revolving Time Deposit is a compound-interest time deposit especially for customers who want to access their funds in under three months. Solid Success Time Installment Deposit is a time installment deposit product for business owners. It offers a sliding scale of interest rates if the customer purchases additional products, such as a retirement annuity. Happy Time Installment Deposit is a fixed-interest time installment deposit account for individuals. It also provides extra services for occasio! ns, such as weddings, overseas trips and the birth of a child.
The Company provides one-stop services to corporate clients through joint account management by Woori Bank, Woori Investment & Securities, Woori CS Asset Management and Woori Private Equity. It also carries out various sales and marketing activities to promote its products and services to domestic companies of all sizes. The Company supports small and medium-sized enterprise (SME). In addition to financial products, it also provides professional consulting services. Woori Bank ahs developed the Woori Robot Era Loan and Woori Green Solar Loan. To help family-owned businesses, Woori Bank operates the Woori Family Business Succession Consulting program.
Woori Bank has an investment banking firm in Hong Kong. Woori Financial Group acts as a developer of client specific derivatives. Woori Bank acts as a dealer in overseas index products, including NIKKEI and HSCEI-indexed derivatives. The Bank also sells comForex, combining F/X and spot transactions. As of December 31, 2009, the Company had 9.3 million cardholders. Woori Financial Group provides its private banking clients with financial solutions. Woori Bank has consulting centers for private banking customers, which offers advice on taxes, real estate, asset management, overseas investments and financing solutions for emigrants and students studying abroad.
The Company provides wealth management solutions for its customers. Octo is the name of Woori Investment & Securities wealth management service for high-networth individuals. Octo customers can use a single platform to buy and sell equity-linked securities, bonds, repurchase agreements, bills and beneficiary certificates, and access their cash management accounts. The Company provides professional advice and a range of consumer insurance products to its clients. It offers a portfolio of 61 insurance products, which includes 35 life insurance, and 26 property and casualty. Woori CS Asset Management has! one exch! ange traded funds and 63 other products, including structured products, overseas asset funds and index funds.
Woori Finance Information System has developed integrated customer relationship management (CRM) and Groupware systems, information technology (IT) systems for Woori Bank�� overseas branches and a credit risk management system for Woori Investment & Securities. The Company also deployed a standardized asset & liability management system and an imaging system for managing utility bill payments. The Company has also integrated the IT infrastructure of Woori CS Asset Management, Woori AVIVA Life Insurance and Woori Financial into its system.
Advisors' Opinion:- [By Holly LaFon]
Question: Is Berkshire too big to fail? How about DF and how does it impact insurance and Wells Fargo (WF) and Goldman Sachs (GS)?
Warren: It won�� affect it to my knowledge. Capital ratios for long banks at high levels and affects return on equity. Cap ratios increase and return on equity will increase. Banking in the U.S. is stronger than in the past 20 years. Compared to the EU or 20 years ago, it�� dramatically stronger. Don�� worry about banking being the cause of the next bubble. Usually we don�� get to a bubble the same way we got to the last one. I feel good about our investments at MNT and WFC. We won�� earn as much return on equity because the rules change.
- [By Holly LaFon]
Question: Is Berkshire too big to fail? How about DF and how does it impact insurance and Wells Fargo (WF) and Goldman Sachs (GS).
Warren: It won�� affect it to my knowledge. Capital ratios for long banks at high levels and affects return on equity. Cap ratios increase and return on equity will increase. Banking in the U.S. is stronger than in the past 20 years. Compared to the EU or 20 years ago, it�� dramatically stronger. Don�� worry about banking being the cause of the next bubble. Usually we don�� get to a bubble the same way we got to the last one. I feel good about our investments at MNT and WFC. We won�� earn as much return on equity because the rules change.
10 Best Low Price Stocks To Own For 2014: Acme United Corp (ACU)
Acme United Corporation, incorporated in 1882, is a worldwide supplier of cutting, measuring and safety products to the school, home, office, hardware and industrial markets. It markets and sells under five main brands - Westcott, Clauss, Camillus, PhysiciansCare and Pac-Kit. The Company has grouped its operations into three segments based on the Company's geographical organization and structure: United States, which includes its Asian operations; Canada and Europe. On February 28, 2011, the Company purchased all of the assets of The Pac-Kit Safety Equipment Company, which is a manufacturer of first aid kits for the industrial, safety, transportation and marine markets. In June 2012, the Company acquired selected assets of The C-Thru Ruler Company. In August 2013, the Company purchased a manufacturing and distribution center in Rocky Mount, North Carolina.
The Company's operations are in the United States, Canada, Europe (located in Germany) and Asia (located in Hong Kong and China). The operations in the United States, Canada and Europe are primarily engaged in product development, marketing, sales, administrative and distribution activities. The operations in Asia consist of sourcing, product development, production planning, quality control and sales activities.
Cutting
Principal products within the cutting device category are scissors, shears, guillotine paper trimmers, rotary paper trimmers, rotary cutters, knives, hobby knives and blades, utility knives, pruners, loppers, saws, manicure products, medical cutting instruments and pencil sharpeners. During the year ended December 31, 2011, products introduced included an expanded line of heavy duty school and office iPoint pencil sharpeners. Other recent product introductions included Westcott TrimAir paper trimmers with patented titanium coating and a blade change system for rotary and personal trimmers, Westcott Ultra Soft Handle scissors with anti-microbial product protection, True Professional sewing shear! s, as well as a line of iPoint pencil sharpeners utilizing the Company's non-stick coating. The Company also added to its KleenEarth family of recycled products by modifying the production process to allow for multi-colored products as opposed to the traditional black. During 2011, Clauss introduced the AirShoc line of titanium coated non stick garden tools.
Measuring
Principal products within the measuring instrument category are rulers, and math tools. During 2011, product introductions included Westcott branded compasses, protractors, rulers and math kits with anti-microbial product protection.
Safety
Principal products within the safety product category are first aid kits, personal protection products and over-the-counter medication refills. The Company markets these products under the PhysiciansCare brand.
The Company competes with Fiskars Corporation, Helix International Ltd. and Johnson and Johnson.
Advisors' Opinion:- [By Bristol Voss]
Acme United (NYSE: ACU) is a global supplier of cutting, measuring and safety products to consumer and industrial markets. It has neatly tracked the S&P small-cap index and shown the least volatility of the three stocks. While its $43.7 million market cap is the lowest of the three, its nearly $14 share price is the highest. It has a forward P/E of 9.2, and its dividend yield is the best of the three at 2.3%. In its most recent quarter, Acme posted a 7% increase in net income and a 3% rise in earnings.
10 Best Low Price Stocks To Own For 2014: Ishares Trust Russell 1000 (IWF)
iShares Russell 1000 Growth Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the large-capitalization growth sector of the United States equity market, as represented by the Russell 1000 Growth Index (the Growth Index). The Growth Index is a subset of the Russell 1000 Index. The Index is capitalization weighted, and consists of those companies, or portion of a company, with higher price-to-book ratios and higher forecasted growth within the Russell 1000 Index. The Growth Index represents approximately 49% of the total market capitalization of the Russell 1000 Index.
The Fund invests in a representative sample of securities included in the Growth Index that collectively has an investment profile similar to the Growth Index. iShares Russell 1000 Growth Index Fund's investment advisor is Barclays Global Fund Advisors.
Advisors' Opinion:- [By James Brumley]
It’s been especially untrue the last few years. Since this point in the year back in 2003, the iShares Russell 1000 Growth Fund (IWF) has advanced 81%, while the iShares Russell 1000 Value Fund (IWD) has only advanced 67%.
10 Best Low Price Stocks To Own For 2014: AIA Group Ltd (AAIGF.PK)
AIA Group Limited is an investment holding company. The Company and its subsidiaries are engaged in provision of products and services to individuals and businesses for their insurance, protection, savings, investment and retirement needs. The Company operates life insurance business, providing life, pensions, and accident and health products to customers in its local market, and distributes related investment and other financial services products. The Company serves more than 100,000 corporate clients with more than 13 million group insurance scheme members. It has operations in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Indonesia, Vietnam, India, Australia, Taiwan, New Zealand, Macau and Brunei. As of November 30, 2012, its subsidiaries included American International Assurance Company, Limited (AIA Co.), American International Assurance Company (Bermuda) Limited (AIA-B), AIA Australia Limited and PT AIA Financial, among others. Advisors' Opinion:- [By Holly LaFon]
Berkowitz�� top holdings continue to be: American International Group Inc. (AIG), AIA Group Ltd. (AAIGF.PK), Sears Holdings Corp. (SHLD), Berkshire Hathaway Inc. (BRK.B) and Brookfield Asset Management Inc. (BAM).
10 Best Low Price Stocks To Own For 2014: West Pharmaceutical Services Inc.(WST)
West Pharmaceutical Services, Inc. manufactures and sells components and systems for injectable drug delivery and plastic packaging, and delivery system components for the pharmaceutical, healthcare, and consumer products industries. The company?s Packaging Systems segment provides packaging components and systems used in injectable drug delivery. This segment offers elastomeric stoppers and discs, elastomeric plungers, needle shields, tip caps, aluminum seals and removable plastic buttons, elastomeric components, flashback bulbs and sleeve stoppers, elastomer and co-molded elastomer/plastic components, non-filled syringe components, and dropper bulbs, as well as pharmaceutical containers, closures, and dispensers. This segment also provides laboratory and other services comprising extractables and leachables testing, package/container testing, method development/validation, stability testing, process development, and problem resolution. Its Delivery Systems segment offer s healthcare devices, such as ready-to-use prefilled syringe systems and sterile vials. This segment also offers sterile devices and electronic patch injector systems; passive safety needle systems, disposable auto-injector systems, and safety systems for prefilled syringes; and contract manufacturing services for personal care and consumer products, including infant nurser assemblies, closures for beverage containers, and child-resistant and tamper-evident closures and dispensers. In addition, this segment engages in contract manufacturing and assembling injection molded components and devices for surgical, ophthalmic, diagnostic, and drug delivery systems. The company distributes its products through its sales force and distribution network, as well as through contract sales agents and regional distributors in the United States, Germany, France, and other European countries. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Lionville, Pennsylva nia.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on West Pharmaceutical Services (NYSE: WST ) , whose recent revenue and earnings are plotted below.