Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.
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 Morningstar (Nasdaq: MORN ) , whose recent revenue and earnings are plotted below.
Top 10 Electric Utility Companies To Own In Right Now: Itau Unibanco Holding SA (ITUB)
Itau Unibanco Holding S.A., incorporated on September 9, 1943, is a bank in Brazil. The Company has four operational segments: Commercial Banking, Itau BBA, Consumer Credit and Corporate and Treasury. Commercial banking, including insurance, pension plan and capitalization products, credit cards, asset management and a variety of credit products and services for individuals, small and middle-market companies). Itau BBA includes corporate and investment banking. Consumer credit includes financial products and services to its non-accountholders. Corporate and treasury includes the results related to the trading activities in its portfolio, trading related to managing currency, interest rate and other market risk factors, gap management and arbitrage opportunities in domestic and foreign markets. It also includes the results associated with financial income from the investment of its excess capital.
On October 24, 2010, Itau Unibanco completed the integration of customer service locations throughout Brazil. In total, 998 branches and 245 customer site branches (CSB) of Unibanco were redesigned and integrated as Itau Unibanco customer service locations, thus creating a network of approximately 4,700 units in the country under the Itau brand. The Company is a financial holding company controlled by Itau Unibanco Participacoes S.A. (IUPAR). As of December 31, 2010, it had a network of 3,747 service branches throughout Brazil. As of December 31, 2010, it operated 913 CSBs throughout Brazil. As of December 31, 2010, it operated 28,844 automated teller machines (ATMs) throughout Brazil.
Commercial banking
The commercial banking segment offers a range of banking services to a diversified base of individuals and companies. Services offered by the commercial banking segment include insurance, pension plan and capitalization products, credit cards, asset management, credit products and customized products and solutions. The commercial banking segment comprises the specialized! areas and products, such as retail banking (individuals); public sector banking; personnalite (banking for high-income individuals); private banking (banking and financial consulting for wealthy individuals); very small business banking; small business banking; middle-market banking; credit cards; real estate financing; asset management; corporate social responsibility fund; securities services for third parties; brokerage, and insurance, private retirement and capitalization products.
The Company�� credit products include personal loans, overdraft protection, payroll loans, vehicles, credit cards, mortgage and agricultural loans, working capital, trade note discount and export. Its investments products include pension plans, mutual funds, time deposits, demand deposit accounts, savings accounts and capitalization plans. Its services include insurance (life, home, credit/cash cards, vehicles, loan protection, among others), exchange, brokerage and others. Its core business is retail banking, which serves individuals with a monthly income below R$7,000. In October 2010, it completed the conversion of branches under the Unibanco brand to the Itau brand and as of December 31, 2010, it had over 15.2 million customers and 4,660 branches and CSBs. Its public sector business operates in all areas of the public sector, including the federal, state and municipal governments (in the executive, legislative and judicial branches). As of December 31, 2010, it had approximately 2,300 public sector customers. Itau Personnalite�� focus is delivering financial advisory services by its managers, who understand the specific needs of its higher-income customers; a portfolio of exclusive products and services; special benefits based on the type and length of relationship with the customer, including discounts on various products and services. Itau Personnalite�� customer base reached more than 600,000 individuals as of December 31, 2010. Itau Personnalite customers also have access to Itau Unibanco netwo! rk of bra! nches and ATMs throughout the country, as well as Internet banking and phone.
Itau Private Bank is a Brazilian bank in the global private banking industry, providing wealth management services to approximately 17,951 Latin American clients as of December 31, 2010. The Company serves its customers��needs for offshore wealth management solutions in major jurisdictions through independent institutions in the United States through Banco Itau Europa International and Itau Europa Securities , in Luxembourg through Banco Itau Europa Luxembourg S.A. , in Switzerland through Banco Itau Suisse , in the Bahamas through BIE Bank & Trust Bahamas and in Cayman through Unicorp Bank & Trust Cayman. As of December 31, 2010, it had over 565 very small business banking offices located throughout Brazil and approximately 2,500 managers working for over 1,235,000 small business customers. Loans to very small businesses totaled R$5,981 million as of December 31, 2010. As of December 31, 2010, it had 374 small business banking offices located nationwide in Brazil and nearly 2,500 managers who worked for over 525,000 companies. Loans to small businesses totaled R$28,744 million as of December 31, 2010.
As of December 31, 2010, it had approximately 115,000 middle-market corporate customers that represented a range of Brazilian companies located in over 83 cities in Brazil. The Company offers a range of financial products and services to middle-market customers, including deposit accounts, investment options, insurance, private retirement plans and credit products. Credit products include investment capital loans, working capital loans, inventory financing, trade financing, foreign currency services, equipment leasing services, letters of credit and guarantees. The Company also carries out financial transactions on behalf of middle-market customers, including interbank transactions, open market transactions and futures, swaps, hedging and arbitrage transactions. It also offers its middle-market custom! ers colle! ction services and electronic payment services. The Company is able to provide these services for virtually any kind of payment, including Internet office banking. It charges collection fees and fees for making payments, such as payroll, on behalf of its customers.
The Company is engaged in the Brazilian credit card market. Its subsidiaries, Banco Itaucard S.A. (Banco Itaucard) and Hipercard Banco Multiplo S.A. (Hipercard), offers a range of products to 26 million customers as of December 31, 2010, including both accountholders and non-accountholders. As of December 31, 2010, it had approximately R$16,271 million in outstanding real estate loans. As of December 31, 2010, it had total net assets under management of R$291,748 million on behalf of approximately 2.1 million customers. The Company also provides portfolio management services for pension funds, corporations, private bank customers and foreign investors. As of December 31, 2010, it had R$184,496 million of assets under management for pension funds, corporations and private bank customers. As of December 31, 2010, the Company offered and managed about 1,791 mutual funds, which are mostly fixed-income and money market funds. For individual customers, it offered 154 funds to its retail customers and approximately 287 funds to its Itau Personnalite customers. Private banking customers may invest in over 600 funds, including those offered by other institutions. Itau BBA�� capital markets group also provides tailor-made mutual funds to institutional, corporate and private banking customers.
The Company provides securities services in the Brazilian capital markets. Its services also include acting as transfer agent, providing services relating to debentures and promissory notes, custody and control services for mutual funds, pension funds and portfolios, providing trustee services and non-resident investor services, and acting as custodian for depositary receipt programs. The Company also provides brokerage services to inte! rnational! customers through its broker-dealer operations in New York, through its London branch, and through its broker-dealers in Hong Kong and Dubai. Its main lines of insurance are life and casualty (excluding Vida Gerador de Benefucio Livre), extended warranties and property. Its policies are sold through its banking operations, independent local brokers, multinational brokers and other channels. As of December 31, 2010, it had 9.9 million in capitalization products outstanding, representing R$2,620 million in liabilities with assets that function as guarantees of R$2,646 million. The Company distributes these products through its retail network, Itau Personnalite and Itau Uniclass branches, electronic channels and ATMs. These products are sold by its subsidiary, Cia. Itau de Capitalizacao S.A.
Itau BBA
Itau BBA is responsible for its corporate and investment banking activities. As of December 31, 2010, Itau BBA offered a portfolio of products and services to approximately 2,400 companies and conglomerates in Brazil. Itau BBA�� activities range from typical operations of a commercial bank to capital markets operations and advisory services for mergers and acquisitions. As of December 31, 2010, its corporate loan portfolio was R$ 76,584 million. In investment banking, the fixed income department was responsible for the issuance of debentures and promissory notes that totaled R$18,888 million and securitization transactions that amounted to R$4,677 million in Brazil in 2010. In addition, Itau BBA advised 35 merger and acquisition transactions with an aggregate deal volume of R$16,973 million in 2010.
Itau BBA is also active in Banco Nacional de Desenvolvimento Economico e Social (BNDES) on-lending to finance large-scale projects, aiming at strengthening domestic infrastructure. In consolidated terms, total loans granted by Itau BBA under BNDES on-lending represented more than R$9,010 million in 2010. Itau BBA focuses on the products and initiatives in the international ! business ! unit, such as structuring long-term, bilateral and syndicated financing, and spot foreign exchange. In addition, in 2010 Itau BBA continued to offer a large number of lines of credit for foreign trade.
Consumer Credit
As of December 31, 2010, its portfolio of vehicle financing, leasing and consortium lending consisted of approximately 3.8 million contracts, of which approximately 71.1% were non-accountholder customers. The personal loan portfolio relating to vehicle financing and leasing reached R$60,254 million in 2010. The Company leased and financed vehicles through 13,706 dealers as of December 31, 2010. Sales are made through computer terminals installed in the dealerships that are connected to its computer network. Redecard S.A. (Redecard) is a multibrand credit card provider in Brazil, also responsible for the capturing, transmission, processing and settlement of credit, debit and benefit card transactions. As of December 31, 2010, the Company held approximately 50% interest in Redecard�� capital stock.
The Company competes with Bradesco, Banco do Brasil S.A. (Banco do Brasil), Banco Santander, Caixa Economica Federal (CEF), BNDES, HSBC, Banco Citibank S.A, Banco de Investimentos Credit Suisse (Brasil) S.A., Banco JP Morgan S.A., Banco Morgan Stanley S.A., Banco Merrill Lynch de Investimentos S.A., Banco BTG Pactual S.A., Banco Panamericano S.A, Citibank S.A., Banco GE Capital S.A. and Banco Ibi S.A.
Advisors' Opinion:- [By Charles Sizemore]
And speaking of top dividend stocks with high capital gains potential, next on the list of are Brazilian banking groups Banco Bradesco (BBD) and Banco Itau (ITUB) — two monthly dividend stocks you must consider.
- [By Will Ashworth]
Cencosud is one of the largest retailers in Latin America. It operates grocery stores, home improvement stores and department stores in five countries including Chile, its home base. Its stock is down 51% over the past year for several reasons, including a deal falling through that would have seen it sell 51% of its credit card operations in Chile and Argentina to Itau Unibanco (ITUB) and using the proceeds to reduce its heavy debt load. Add to that a major devaluation of the peso in Argentina, where it generates a quarter of its overall revenue, and you have investors in a full-on panic.
- [By Hilary Kramer]
Itau Unibanco (ITUB): A lot of investors have never heard of Itau because it’s headquartered in Brazil, but it’s one of the world’s largest financial institutions. With 5,000 branches, 100,000 employees and nearly $500 billion in assets (yes, half a trillion!), ITUB is not just the largest Latin American bank, it is one of the biggest in the world. With proven dominance in Brazil (and Latin America), Itau Unibanco is a go-to financial pick, and it currently yields an attractive 3.5%. I recently recommended that my Inner Circle readers sell ITUB on a nice bounce due to the risk of near-term weakness on economic data out of China, but I�� already looking for an opportunity to get back in.
Top 10 Electric Utility Companies To Own In Right Now: Alexion Pharmaceuticals Inc.(ALXN)
Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of biologic therapeutic products for treating patients with severe and life-threatening disease states in the United States, Europe, Latin America, Japan, and the Asia Pacific. It focuses on developing products for the treatment of diseases in the areas of hematology, nephrology, neurology, ophthalmology, and cancer. The company develops and commercializes Soliris (eculizumab), a therapeutic product for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH), a blood disorder. It also conducts various Phase II clinical trail programs on Soliris for its usage for the treatment of cold agglutinin disease; atypical hemolytic uremic syndrome; presensitized renal transplant; kidney transplant for catastrophic antiphospholipid syndrome; ABO incompatible renal transplant; dense deposit disease; myasthenia gravis; neuromyelitis optica; and dry a ge-related macular degeneration. In addition, the company conducts Phase IV clinical trails on Soliris for its usage for the treatment of PNH registry; and Phase I clinical trails on Samalizumab for the treatment of oncology diseases, such as chronic lymphocytic leukemia and multiple myeloma. Alexion Pharmaceuticals, Inc. serves specialty distributors and specialty pharmacies, which supply physician office clinics, hospital outpatient clinics, infusion clinics, or home health care providers; government agencies; and hospitals, hospital buying groups, pharmacies, other healthcare providers, and distributors. The company was founded in 1992 and is headquartered in Cheshire, Connecticut.
Advisors' Opinion:- [By Sean Williams]
Thursday, April 25
Biogen Idec (NASDAQ: BIIB ) : Biogen is so hot right now, I'd highly recommend using oven mitts when handling shares. Over the past quarter, Biogen announced the purchase of the remaining global rights to multiple sclerosis drug Tysabri from Elan�for $3.25 billion in cash and had the Food and Drug Administration approve its revolutionary new MS-drug Tecfidera. I don't believe Biogen Idec's first-quarter results will have much bearing on its share price so much as its forward guidance. This will be the first time Wall Street gets a glimpse at the growth Biogen expects from Tecfidera sales as well as owning the full global rights to Tysabri. Pay attention to its full-year EPS forecast and anything the company has to say regarding its 2014 growth estimates. Celgene (NASDAQ: CELG ) : Celgene's CEO, Robert Hugin, made some very bold claims at the JPMorgan Healthcare Conference in January that his company would be able to triple revenue and double EPS growth by 2017 based solely on organic growth. Consider this quarter the first test of that assertion. Things have definitely moved in Celgene's favor, with Abraxane gaining additional indications in cancer treatment and Revlimid sales running strong. However, it'll need to gain approval of Apremilast to treat psoriasis if it hopes to achieve its lofty growth targets. Following Celgene's huge first-quarter run, the company's guidance here will be everything, so focus all of your attention on that, and any comments with regard to the advancement of Apremilast. Alexion Pharmaceuticals (NASDAQ: ALXN ) : Having seen Affymax�shares implode because of a recall, I'm always concerned about companies whose entire pipeline lives and dies off one drug. Alexion's Soliris is a billion-dollar blockbuster, but its entire pipeline involves the use of Soliris in one indication or another. Therefore, my big focus in Alexion's first-quarter report will be if it can top EP - [By Sean Williams]
Alexion Pharmaceuticals (NASDAQ: ALXN )
If there's one company that certainly has big shoes to fill this earnings season its orphan drug developer Alexion whose lone drug, Soliris, is anticipated to bring in about $1.5 billion in sales this year. For the quarter, Alexion is forecast to grow revenue by 33% to $365 million with EPS rising 45% to $0.68. Given that Alexion has topped Wall Street's EPS estimates by an average of 19% in each of the past four quarters, I'd certainly be expecting an earnings beat if I were a shareholder. My worry here is that with Roche demonstrating potential interest in Alexion, even a big boost in its bottom line may not be enough to sustain Alexion at 34 times forward earnings. - [By gurujx]
Alexion Pharmaceuticals, Inc. (ALXN): Director Larry Mathis sold 80,729 Shares
Director Larry Mathis sold 80,729 shares of ALXN stock on Feb. 3 at the average price of $157.5. Larry Mathis owns at least 29,456 shares after this. The price of the stock has increased by 3.89% since.
- [By Sean Williams]
Alexion Pharmaceuticals (NASDAQ: ALXN ) , for example, is currently worth more than $21 billion because of its focus on rare diseases. Its lone drug approved by the Food and Drug Administration, Soliris, is the most expensive drug in the world and is approved to treat a rare blood disorder known as paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. This year alone, Soliris is expected to top $1.5 billion in sales.
5 Best Construction Material Stocks To Own For 2015: SK TELECOM ADR EACH REP 1/9 KRW500(CIT)
SK Telecom Co., Ltd. provides wireless telecommunications services using code division multiple access (CDMA) and wide-band CDMA technologies. It offers cellular voice services, such as wireless voice transmission services; and wireless global roaming services. The company also provides wireless data transmission services, such as wireless Internet access services, which allow subscribers to access online digital contents and services, as well as to send and receive text and multimedia messages. In addition, it offers broadband Internet and fixed-line telephone services, such as video-on-demand and IP TV services; and local, domestic, and international long-distance fixed-line telephone services to residential and commercial subscribers. Further, the company provides wireless entertainment-related contents and services, wireless finance-related contents and m-commerce services, and wireless news and search services; and international calling services, such as direct-dial, pre and post paid card calling services, bundled services for corporate customers, voice services using Internet protocol, Web-to-phone services, and data services. Additionally, it offers satellite digital media broadcasting services; telematics services; and fixed-line and online community portal services. The company also operates 11th Street, an online shopping mall; and T Store, an online open marketplace for mobile applications. As of March 31, 2011, SK Telecom Co. had 26 million wireless subscribers. It has strategic alliances with Bridge Alliance; Orange SA; Telecom Italia Mobile S.p.A.; T-Mobile International AG & Co; and Teliasonera Mobile Networks AB. The company was formerly known as Korea Mobile Telecommunications Co., Ltd. and changed its name to SK Telecom Co., Ltd. in March 1997. SK Telecom Co., Ltd. was founded in 1984 and is based in Seoul, South Korea.
Advisors' Opinion:- [By Lee Jackson]
CIT Group Inc. (NYSE: CIT) operates as the holding company for CIT bank, which provides commercial financing and leasing products, as well as deposit products and savings accounts. The company operates through five segments: Corporate Finance, Transportation Finance, Trade Finance, Vendor Finance, and Consumer. The Oppenheimer target for the stock was not listed in the report. The consensus target for the stock is $54.25.
Top 10 Electric Utility Companies To Own In Right Now: Strattec Security Corporation(STRT)
Strattec Security Corporation engages in the design, development, manufacture, and marketing of automotive access control products. The company?s products include mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding door systems, power lift gate systems, power deck lid systems, door handles, and related products. It also provides full service and aftermarket support for its products. The company offers its products primarily for automotive manufacturers. It markets its products in the United States, Canada, Mexico, Europe, South America, Korea, and China. The company was founded in 1994 and is headquartered in Milwaukee, Wisconsin.
Advisors' Opinion:- [By Martin Vlcek]
Strattec Security Corp. (STRT) is a growing small-cap company with more than 100 years in the automotive supply industry and strong sales growth since 2009. The success and growth of Strattec are still mostly influenced by the global automotive markets. As many analysts still predict ongoing industry growth, the company is poised to continue strongly benefiting from this automotive tailwind. However, the company's recent diversification efforts into new product lines, industries outside of automotive and countries outside of the U.S. have created multiple new growth drivers that will ensure Strattec's continued robust sales and EPS expansion. The company's growth has also become much more balanced and more resilient to a potential automotive industry shock or U.S. slowdown.
- [By Monica Wolfe]
Strattec Security (STRT)
Last week Mario Gabelli increased his position in Strattec Security. The guru increased his position 4.82% by adding a total of 13,136 shares to his holdings. He bought these shares at an average price of $43.15, and since then the price per share has increased approximately 5%.
Top 10 Electric Utility Companies To Own In Right Now: Swedbank AB (SWDBY.PK)
Swedbank AB is the parent company of Swedbank. Swedbank consists of subsidiaries, associates and a joint venture. The Company operates in six business areas: Swedish Banking, Baltic Banking, International Banking, Swedbank Markets, Asset Management and Ektornet. On January 20, 2009, Swedbank Robur AB acquired Banco Fonder AB from Alfred Berg. In February 2010, the Company acquired a 15% equity stake in OAO Swedbank from European Bank for Reconstruction and Development (EBRD). During the year ended December 31, 2009, Swedbank sold four branches to Sparbanken Nord, three branches to Sparbanken Dalsland, two branches to Sparbanken Rekarne, one branch to Tidaholms Sparbank and one branch to Sparbanken 1826.
Swedish Banking
Swedish Banking is engaged in offering a range of financial products and services to private customers, corporates, organisations and municipalities through close to 400 branches, as well as the telephone bank and Internet bank in Sweden. Swedbank�� products are also sold through the cooperating savings banks, which account for another 275 branches. The subsidiary in Luxembourg, with a representative office in Spain is included in the business area as well.
Baltic Banking
Baltic Banking offers a range of financial products and services to private and corporate customers in Estonia, Latvia and Lithuania. It offers its services through 226 branches, as well as the telephone bank and Internet bank.
International Banking
International Banking consists of operations outside Swedbank�� home markets, primarily the banking operations in Ukraine and Russia. In addition to Ukraine and Russia, the business area includes the branches in Denmark, Norway, the United States and China, as well as the representative office in Japan. The branch network in Ukraine, consists of 156 branches, serves both private and corporate customers. The Nordic branches offer corporate customers, mainly Swedish customers with operations in! the Nordic markets, a range of financial products and services.
Swedbank Markets
Swedbank Markets has operations in equity, fixed income and currency trading, corporate finance, as well as project, export and acquisition financing. In addition to its operations in Swedbank�� home markets, the business area includes the subsidiaries First Securities ASA in Norway and Swedbank First Securities LLC in New York.
Asset Management
Asset Management, which consists of the subsidiary Swedbank Robur Group, offers services in fund management, institutional and discretionary asset management in all of Swedbank�� home markets. Its customers include private customers, as well as institutions, foundations, municipalities, county councils and other investors. Its products are sold and distributed primarily by Swedish Banking and Baltic Banking and the savings banks in Sweden.
Ektornet
Ektornet is an independent subsidiary of Swedbank AB. It focuses on managing the Company�� repossessed assets and developing them over time. Most of the collateral consists of real estate, the part of which will be in the Baltic countries, though also in the Nordic region and the United States.
Advisors' Opinion:- [By David Hunkar]
Current Dividend Yield: 5.16%
Company: Swedbank AB (SWDBY.PK)
Sector: Oil, Gas & Consumable Fuels
Country: FranceCurrent Dividend Yield: 6.50%
Sector: Banking
Country: Sweden
Top 10 Electric Utility Companies To Own In Right Now: Teucrium Wheat Fund (WEAT)
Teucrium Wheat Fund (the Fund) is a commodity pool. The Fund is a series of the Teucrium Commodity Trust (Trust). The Fund provides investors unleveraged direct exposure to wheat without the need for a futures account. The investment objective of the Fund is to have the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for wheat (Wheat Futures Contracts) that are traded on the Chicago Board of Trade (CBOT), which includes the second-to-expire CBOT Wheat Futures Contract, weighted 35%; the third-to-expire CBOT Wheat Futures Contract, weighted 30%, and the CBOT Wheat Futures Contract, weighted 35%. The Fund is managed by Teucrium Trading, LLC. Advisors' Opinion:- [By Paul Ausick]
The Teucrium Wheat Fund (NYSEMKT: WEAT) closed down 2.43% on Friday to finish the week at $16.47. For the week the fund was up 0.8%. The 52-week range is $13.31 to $19.50. Like corn, the price is up more than 12% since the beginning of the year and down 10.5% over the past 12 months. This fund trades averages just 41,000 shares traded in a day, but nearly tripled that on Friday, when wheat prices fell more than 2% on the CBOT to close at $6.955 a bushel.
Top 10 Electric Utility Companies To Own In Right Now: Stamps.com Inc.(STMP)
Stamps.com Inc. provides Internet-based postage solutions. The company offers solutions to mail and ship various mail pieces, including postcards, envelopes, flats, and packages. Its products and services include the United States Postal Service (USPS)-approved PC Postage Service that enables users to print electronic stamps directly onto envelopes, plain paper, or labels using personal computer, printer, and Internet connection; and PhotoStamps, a patented form of postage, which allows consumers to turn digital photos, designs, or images into valid United States postage. The company also sells NetStamps labels, shipping labels, other mailing labels, postage printers, scales, and other mailing and shipping-focused office supplies through its mailing and shipping supplies store, as well as offers back-end integration solutions, an electronic postage for transactions to manage the front-end process. In addition, it offers Stamps.com branded insurance enabling users to insure their mail or packages; and official USPS package insurance. Stamps.com Inc. serves individuals, small businesses, home offices, medium-size businesses, and large enterprises. The company was formerly known as StampMaster, Inc. and changed its name to Stamps.com Inc. in December 1998. Stamps.com Inc. was founded in 1996 and is headquartered in Los Angeles, California.
Advisors' Opinion:- [By Michael Lewis]
While the United States Postal Service may be limping toward extinction, postage itself is far from a dying business. Web-based Stamps.com (NASDAQ: STMP ) had worried investors and analysts for some time that demand would soften along with the USPS decline, but it's done nearly the opposite. In its most recent quarter, Stamps.com broke company records and showed strong promise in the future. The announcement delighted investors, sending the stock up more than 13% immediately following. But with a relatively rich valuation, the company may only be a buy for opportunistic, growth-happy investors. Here's what you need to know.
- [By Bryan Murphy]
By almost any measure, Stamps.com Inc. (NASDAQ:STMP) is a solid investment. Revenue and profits are on the rise, and are projected to grow again in 2014. Stamps.com has also developed a penchant for earnings beats. And, at a trailing P/E of 18.3 and a forward-looking P/E ratio of 15.7, it's not like STMP shares cost a relative fortune. Yet, STMP is starting to look like a major liability where it could hurt shareholders the most... on the chart.
- [By Jon C. Ogg]
Then there is that lucky or unlucky outcome of price hikes. The public will pay more for stamps, making you and me the losers in this. The question to ask is whether or not Stamps.com Inc. (NASDAQ: STMP) just get a built-in revenue booster per customer on a static basis?
Top 10 Electric Utility Companies To Own In Right Now: Citadel Capital SAE (CCAP)
Citadel Capital SAE is an Egypt-based company engaged in the private equity investment activities. The Company manages an investment portfolio that consist of 19 Opportunity-Specific Funds (OSFs), which controls entities platform distributed across 12 countries in the Middle Eastern and North African markets, and span 14 industrial sector such as energy, cement manufacturing, solid waste management, real estate, mining, agricultural, glass manufacturing, transportation and metallurgy. Its OSFs entities include Asec Holding, Ascom Geology and Mining SAE, Nile Logistics, Rift Valley Railways, Gozour, Wafra, Nopc / Rally Energy Group, Nile Valley Petroleum Ltd, Egyptian Refining Company, Taqua Arabia, GlassWorks and Finance Unlimited, among others. On December 9, 2012, the Company announced that it has sold 100% of its interest in National Petroleum Company Egypt Limited (NPC Egypt), a wholly owned portfolio company, to Sea Dragon Energy Inc. Advisors' Opinion:- [By Joshi Madhavi]
Charlemagne Capital Limited (CCAP) is an established asset management group in the UK with an exclusively emerging markets focus and bottom-up stock picking process. The business is cyclical with fortunes linked to emerging market performance. The company�� strategy is to grow each category within its broad fund range: mutual funds, hedge funds, specialist funds and institutional products.
- [By Julia Leite]
Declines provided an opportunity for ��rofit taking��for ��hort term players who bought in the last week or so,��Julian Mayo, who helps manage $2.5 billion in emerging-market assets as the co-chief investment officer at Charlemagne Capital Ltd. (CCAP) in London, said by e-mail. ��fter a 5 to 10 percent gain in some emerging markets in such a short time, some correction is always likely.��
Top 10 Electric Utility Companies To Own In Right Now: Boot(h)
Henry Boot PLC, together with its subsidiaries, operates as a property and construction company in the United Kingdom. Its property portfolio includes retail warehousing properties, leisure and retail parks, town centre retail and mixed use properties, industrial and office properties, and business parks. The company engages in the acquisition, promotion, development, and trading of land; and holds interest in 8,200 acres of land through ownership, option, and agency agreements. It also involves in construction, civil engineering, and road maintenance activities; and offers construction services to the health, education, housing, custodial, and public sectors. In addition, the company offers a range of products and services for sale and hire, such as fleet of contractors' mechanical plant and equipment ranging from telehandlers to rollers; boom and scissor lift access platforms suitable for slab or rough terrain work; accommodation units for applications, including offices , canteens, showers, toilets, and security stores; power tools and equipment consisting of electric tools, engine powered items, concreting and compaction tools, lightweight access equipment, heating and lighting appliances, and home maintenance items; and fleet of machines for construction and industrial applications. Henry Boot PLC was founded in 1886 and is headquartered in Sheffield, the United Kingdom.
Advisors' Opinion:- [By CNNMoney Staff]
In corporate news, firms including Campbell Soup (CPB, Fortune 500) and Hyatt Hotels (H) are set to release quarterly results before the opening bell.
- [By Matt Thalman]
In the following video, Fool contributor Matt Thalman discusses why he believes MGM Resorts' (NYSE: MGM ) recent move to partner with both Southwest Airlines (NYSE: LUV ) and Hyatt Hotels (NYSE: H ) will greatly benefit not only MGM but also its two new partners.
- [By Holly LaFon]
After graduating from Harvard University, Mark Hoplamazian earned his MBA in 1989 from the University of Chicago's Booth School of Business. At Booth, Mark became friendly with Tom Pritzker, who then recruited Mark as a young executive for The Pritzker Organization. When no one in the Pritzkers' heavily Jewish family office could pronounce or spell Mark's Armenian Christian last name, Tom nicknamed him "Steinberg." The Pritzker Organization's flagship investment then, as now, was Hyatt Hotels Corporation (H).
- [By Dan Caplinger]
4. Hawaii
The poor pay 13% of their income in taxes in Hawaii, although the state has relatively high taxes across the board. Even tourists end up paying at least their fair share of taxes, with a double-digit percentage hotel tax imposed on Starwood (NYSE: HOT ) , Hyatt (NYSE: H ) , and other hotel chains, which they then pass on to their guests. The wealthy in Hawaii pay an average tax rate of 8%, the highest of the states on this list, because of extremely high marginal rates on income taxes that range as high as 11%. The sales tax is relatively reasonable at 4%, but the key problem is that the sales tax applies to grocery purchases, which hits the poor especially hard.
Top 10 Electric Utility Companies To Own In Right Now: Rogers Communication Inc.(RCI)
Rogers Communications, Inc. operates as a communications and media company in Canada. The company?s Wireless segment provides wireless voice and data communications services. It operates a global system for mobile communications and general packet radio service network. This segment markets its products and services under Rogers Wireless, Fido, and chatr brands. Its Cable segment offers cable television, high-speed Internet access, and cable telephony services. As of December 31, 2010, this segment provided digital cable services to approximately 1.7 million households; Internet service to approximately 1.7 million residential subscribers; and residential circuit-switched telephony services to approximately a million subscribers. This segment also offers local and long-distance telephone, enhanced voice and data services, and IP access. In addition, this segment operates a retail distribution chain consisting of approximately 400 stores that provide cable services and digi tal and Internet equipment, as well as offers digital video disc and video game sales and rentals. The company?s Media segment publishes magazines, trade and professional publications, and directories, as well as operates 55 radio stations in Canada; multicultural OMNI broadcast television stations; the 5 station Citytv television network; specialty sports television services, including Rogers Sportsnet, Sportnet ONE, and Setanta Sports Canada; specialty services, which comprise Outdoor Life Network, The Biography Channel Canada, and G4 Canada; and televised shopping service, The Shopping Channel. It also holds an ownership in a mobile sports and events production and distribution joint venture; delivers content and conducts ecommerce through the Internet; and owns Blue Jays, a League Baseball club, as well as Rogers Centre sports and entertainment venue. The company was founded in 1920 and is based in Toronto, Canada.
Advisors' Opinion:- [By Dan Caplinger]
The big news for Madison Square Garden has been the success of its key sports franchises. The New York Knicks basketball team made the playoffs and earned the No. 2 seed in the Eastern Conference. Even more importantly, the long-delayed National Hockey League season finally got going in January, helping resurrect what many had feared would be a lost season, sending shares of MSG, as well as Canadian venue/team-owners Rogers Communications (NYSE: RCI ) and BCE (NYSE: BCE ) , higher. As it turned out, MSG's New York Rangers made the playoffs and will go up against the Washington Capitals in the first round. Playoffs are an especially lucrative time for sports viewership, and usually translate into extra profits for the company's broadcast businesses.
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