Wednesday, 31 October 2012

Tesoro Is Cheaper Than Valero


When we compare two giant refineries, namely Tesoro (TSO) and Valero (VLO), we observe that the former is more attractive than the latter due to its low valuations, higher profit margins, better return on equity, and low dependence on debt. TSO is trading at attractive valuations, with an EV/EBITDA of 3.75x, at a discount when compared to its peer VLO's EV/EBITDA of 4x. Tesoro's five-year expected PEG ratio of 0.75 in comparison to 0.99 for Valero depicts that TSO's investors can buy growth cheaply. Therefore, we recommend investors to prefer Tesoro over Valero.
Tesoro should be preferred by investors due to its increasing crack spreads, higher capacity utilization, and increasing throughput. We believe the company will acquire BP's (BP) Carson refinery with its strong financial and legal position. This acquisition in Carson City will enable the company to achieve synergies because of its strategic location with TSO's West Coast refinery. Moreover, this acquisition will further increase the company's profitability through managing the carbon tax regulation in the California region.
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Sprint: A Turnaround Stock To Buy


The third largest telecom carrier in terms of subscribers, Sprint Nextel Corporation (S), announced its quarterly results last Thursday, posting a wider loss in the third quarter as compared to the same quarter of the previous year. The company, which recently was part of the $20 billion deal with the Japan-based telecom operator SoftBank (SFTBF.PK), reported a loss of $767 million and a loss per share of $0.26, which was largely due to the expenses incurred in regards to its Network Vision Program. Loss per share of $0.26 is much lower than what analysts were expecting. Sprint recognized approximately $400 million in depreciation during the quarter for the shutdown of its iDen Nextel platform, which affected its profitability, however, its network vision program, which involves shutting its iDen Network, is well on track, as the number of sites that are ready for construction or already underway has doubled to reach a total of approximately 14,000 sites.

Sprint: A Turnaround Stock To Buy


The third largest telecom carrier in terms of subscribers, Sprint Nextel Corporation (S), announced its quarterly results last Thursday, posting a wider loss in the third quarter as compared to the same quarter of the previous year. The company, which recently was part of the $20 billion deal with the Japan-based telecom operator SoftBank (SFTBF.PK), reported a loss of $767 million and a loss per share of $0.26, which was largely due to the expenses incurred in regards to its Network Vision Program. Loss per share of $0.26 is much lower than what analysts were expecting. Sprint recognized approximately $400 million in depreciation during the quarter for the shutdown of its iDen Nextel platform, which affected its profitability, however, its network vision program, which involves shutting its iDen Network, is well on track, as the number of sites that are ready for construction or already underway has doubled to reach a total of approximately 14,000 sites.

Paccar Is A Buy Despite Weakness In Truck Manufacturers


Paccar Ltd (PCAR), the truck manufacturer, has topped earnings estimates for all of its previous four quarters. While the same did not happen this time around, as the company produced an EPS in-line with expectations, it did manage to top revenue estimates.
PCAR is a light, medium and heavy duty truck and engines manufacturer. The company sells its trucks to other dealers with nameplates of Kenworth, Peterbilt and DAF. During the past three months, analyst estimates for EPS had been brought down from 78 cents too 66 cents. The decline in both earnings and revenue figures paints a dirty picture for not only the company, but also for the overall truck manufacturer industry. The PCAR management itself admitted that truck orders had been weak from the North American and European markets.
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Paccar Is A Buy Despite Weakness In Truck Manufacturers


Paccar Ltd (PCAR), the truck manufacturer, has topped earnings estimates for all of its previous four quarters. While the same did not happen this time around, as the company produced an EPS in-line with expectations, it did manage to top revenue estimates.
PCAR is a light, medium and heavy duty truck and engines manufacturer. The company sells its trucks to other dealers with nameplates of Kenworth, Peterbilt and DAF. During the past three months, analyst estimates for EPS had been brought down from 78 cents too 66 cents. The decline in both earnings and revenue figures paints a dirty picture for not only the company, but also for the overall truck manufacturer industry. The PCAR management itself admitted that truck orders had been weak from the North American and European markets.
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Buy Linn Energy: 7% Dividend Yield With Hedged Oil And Gas Production


Linn Energy (LINE) has shown impressive third quarter results, with EPS of $0.45 beating analyst estimates by $0.16. Its superior financial performance is reflected in the 14% increase in profitability, 65% improvement in EBITDA margins, and 106% rise in average daily production. In our opinion, its high dividend yield of 7 percent and dividend payout of 60.5 percent makes it a good prospect for dividend-seeking investors. We believe the company is on the right track to achieve cost efficiencies, and its continuously increasing reserves portray its bright future profitability. Therefore, we reiterate our bullish stance on the stock.
Linn Energy is one of the largest U.S. oil and gas development, production and exploration companies. Its reserves have shown remarkable growth of 50% over the course of the last year, and a CAGR of approximately 65% from 2006 to 2012. It had recorded total reserves of 5.1 Tcfe till the end of first half of 2012, as reflected in the chart below. We assume the continuation of this reserve growth rate will enable the company to generate a sustainable amount of revenue in the coming period.
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Berkshire Hathaway, Hedge Funds Are Buying DaVita



Between September 26th and September 28th, Berkshire Hathaway (BRK.A) purchased 283,403 shares of DaVita Inc. (DVA), in the price range of $100.96-$103.7272. Lately, it has been observed that Berkshire continues to purchase shares, and the latest figures show that the current holdings of Berkshire amount to $10,547,040. DVA has also been reported to be a consensus buy among hedge funds in the second quarter of 2012. DVA currently trades at all time high prices of 16x its forward (2013) earnings.
DVA is a provider of kidney dialysis services, chiefly within the U.S., for patients suffering from chronic kidney failure (end stage renal disease or ESRD). It served a total of 142,000 patients throughout the U.S. 93% of the consolidated net operating revenue was accounted for by the company's dialysis and lab related services, while the remaining was chipped in by other ancillary services, which related to the core business of providing dialysis services.
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2 Solar Stock Buys To Play A Solar Rebound


The solar industry has become extremely competitive over the last few years. The primary reason was a decline in polysilicon prices that led to Chinese solar manufacturers adding to their production capacities (to benefit from declining raw material prices). The result was an excess supply of solar cells that led to a massive decline in solar ASPs and hitting the bottom line of solar companies. In this scenario, we are recommending investors to take long positions in MEMC Electronic (WFR) and SunPower Corporation (SPWR) based upon the respective following key points:
MEMC Electronic:
  • MEMC has shown impressive revenue growth of 78% in the second quarter, led by strong demand from uncertain European markets.
  • The stock has shown an upward movement of 30% over the course of the last three months, and has significant potential to show a further upside.
  • The drastic increase of 120% in the PV Industry in 1H2012 makes it a good prospect to take advantage of ongoing increasing demand in the United States.
  • The stock is trading at low valuations, as compared to its peers in the industry.
  • Its earnings will grow by 280% by the end of FY2013, according to 16 analyst estimates.
  • The company has significant potential to capture growing demand in emerging solar markets in the U.S., India and China.

2 Solar Stock Buys To Play A Solar Rebound


The solar industry has become extremely competitive over the last few years. The primary reason was a decline in polysilicon prices that led to Chinese solar manufacturers adding to their production capacities (to benefit from declining raw material prices). The result was an excess supply of solar cells that led to a massive decline in solar ASPs and hitting the bottom line of solar companies. In this scenario, we are recommending investors to take long positions in MEMC Electronic (WFR) and SunPower Corporation (SPWR) based upon the respective following key points:
MEMC Electronic:
  • MEMC has shown impressive revenue growth of 78% in the second quarter, led by strong demand from uncertain European markets.
  • The stock has shown an upward movement of 30% over the course of the last three months, and has significant potential to show a further upside.
  • The drastic increase of 120% in the PV Industry in 1H2012 makes it a good prospect to take advantage of ongoing increasing demand in the United States.
  • The stock is trading at low valuations, as compared to its peers in the industry.
  • Its earnings will grow by 280% by the end of FY2013, according to 16 analyst estimates.
  • The company has significant potential to capture growing demand in emerging solar markets in the U.S., India and China.

Tuesday, 23 October 2012

Key Ways to Earn Money from Stocks


We all hear a lot about the stock market investment and the way it is growing every day.  Stock market of a country or city is what runs its economy and is responsible for generating the profits and funds for different companies as well as people of the general public.  In the olden times all the countries that have seen their downfall is because their economies went down and that is because their stock markets were ruined to manipulation of top stocks.  Therefore the role of stock market in the city or country is extremely important.  It is because stock markets are important to the public limited companies that have grown from a certain size to a certain size and need their funding and financing of operations through another source.  Therefore they turn to the stock markets in order to sell their stocks to the general public by registering themselves on stock market as a company who is ready to sell the stocks to the general public.

There are many ways in which you can earn money from stocks.  It is not necessary for you to buy stocks that are in the stock market in order to earn money through stocks.  If you have no other job and you are looking for one then you can start researching on the stock market in order to know how things work there in stocks to buy now are sold.  The very first way in which you can earn money on the stocks is by becoming a stock broker.  Stock brokers as a very common occupation in the stock market and you will find lots of stock brokers were ready to help you there.  The purpose of a stock broker is to find clients who are ready to buy stocks and are looking forward to it.  The stock brokers know everything about the stock market and they earn their commission by selling the stocks of a company to a particular person who is interested in buying stocks that pay dividends.  Many people that want to buy stocks off a company but they do not know how to end this is where the role of stock brokers comes in.  They guide these people and have to know not of knowledge about stock market as well as different companies.  Therefore if you want to become a stock broker then you have to have all the knowledge about the stock market investment.

Monday, 15 October 2012

Excel in Stock Market Investment


There are a lot of benefits in investing in the stock market.  Stock market is a place where public limited companies decide to issue their dividend paying stocks to other companies and general public in the exchange of money with which they will execute their expansion plans through the funds they receive by the issuing of shares.  Working on the stock market as a broker or as an individual who is hoping for higher profits, can become an easy task if you can manage it well.  To excel in the stock market investment you need to have a lot of knowledge of the stock market.  There are ways to manage your time between your actual professional lives and stocks, on the stock market investment.  People who think that they will have to work long hours in managing their stocks that they have bought from the stock market, think wrong.

We all know that investing in the stock market is a very flexible business.  Stocks are very liquid, which means that they can be converted into cash very quickly.  This is one of the best flexibility being offered in the stock market.  You can always turn your stocks to buy into cash if they are not giving you profit. For this very reason that the purchasing and selling of stocks is extremely easy many people choose to invest in the stock market.  Another flexibility of the stock market is the fact that you can manage your stocks easily through the Internet.  Due to the progress of technology, the best dividend stocks markets have started updating their statuses online.  This means that if you have trouble in visiting the stock market yourself you can always check it out through the Internet.  However doing so also takes an experience and knowledge of how things work in the stock market.

Wednesday, 10 October 2012

The fluctuating trends of the global stock market


Summary

Stock market is well placed around the world at the moment. We have to confess that high dividend paying stocks are delivering the best yet instant results for the investors. There are a wide range of stocks for us wherein you can invest in for accumulating considerable profits/revenues. However, there are indeed some fluctuating trends around the international stock market. Read below:

Dynamic shift in oil & gasoline prices

Certainly oil and gasoline as well as diesel prices are getting changed drastically around the globe at the moment which is very good news for investors. They are always in search of opportunities where they could invest in for converting their income into a bigger income. How do you achieve this goal being a regular investor? Obvious you will need to invest in oil, gasoline and diesel stocks to buy now in order to ensure the instant return on investment. Currently many companies are working strongly in the buying and selling of the oil stocks as well as gas stocks in China, Japan, India, United States and several other countries. Remember that investment in crude oil/gasoline/diesel is a profitable business for you at any cost. We are dealing in stocks to buy and sell in a very professional and dedicate manner.

Wednesday, 3 October 2012

The best dividend paying mutual funds


Summary
There are many stock market investment plans but none is more valuable and competitive than best dividend paying mutual funds. The most significant aspect about the mutual funds is that these are yours long-term investment plans. What are your hot favorite mutual performing funds available on the stock market? Read on:


T. Rowe Price Equity Income
When we talk about T. Rowe Price Equity Income (PRFDX) mutual funds, they are specially known as no-load mutual funds for the investors of the stock market. These are generally invested in the top rated US companies which have huge revenue volume and dividend paying ratio. There are several kinds of top ranking companies in this regard involving:

·          JP Morgan Chase
·          Chevron Corp
·          General Electric
·          Bank of American
·          ExxonMobil Oil
·          American Express

Currently T. Rowe Price Equity Income has generated up to 1.72% turnover and it does have huge assets and belongings around about $23.3 billion.