Geoff,
I think most of your readers understand that every business is unique and therefore requires varying valuation techniques. However, I think that we could benefit from some advice from you on how to recognize what techniques are appropriate for which general type of business��For example, net-nets are easy ��in its most simplified form you could ask yourself, ��re the current assets (or some discounted version of them) greater than the total liabilities?��If the answer is yes, you know this is a net-net and should be valued as such.
But what questions would you ask to realize that a certain company is best valued on a price/book value? Maybe something like, ��oes the company have a strong intangible brands?��would clue you in that book value is not the right way to look at it? Or, ��oes the current book value represent reality?��might help you with asset-heavy companies like railroads where P/B might be misleading? Or why would you decide that book value is the most appropriate metric?
10 Best Dividend Stocks To Own Right Now: Ishares Trust S & P Global (IXC)
iShares S&P Global Energy Sector Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Standard & Poor�� Global Energy Sector Index (the Index). The Index is a subset of the Standard & Poor�� Global 1200 Index, and measures the performance of companies that Standard & Poor�� deems to be part of the energy sector. Component companies in the Index include those engaged in oil equipment and services, oil exploration and production, and oil refineries.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund�� investment advisor is Barclays Global Fund Advisors.
Advisors' Opinion:- [By Benjamin Shepherd]
So far, 2014 has been a year of heightened geopolitical risk. Russia has annexed the Crimea region of Ukraine, Syria remains embroiled in a civil war, political protests continue in Egypt and Turkey, and North Korea has once again fired missiles into the sea to protest joint US-South Korea military exercises.
Earlier this month, the managing director of the International Monetary Fund, Christine Lagarde, pointed to these simmering geopolitical tensions as an impediment to global economic growth.
Geopolitical risk can affect a variety of asset classes, ranging from energy and gold to bonds and equities. In the energy space, Brent crude, essentially the equivalent of West Texas Intermediate (WTI), traded above $109 a barrel thanks to worries that Russia might make a play for more Ukrainian territory. While WTI also spiked, it finished the week essentially flat following a stronger than expected inventory report from the Energy Information Administration (EIA).
Even as oil prices are on the rise, so is production. In the US, the EIA reports that crude production average 7.5 million barrels per day (BPD) last year, 1 million BPD over 2012 and the highest annual rate since 1989. The agency estimates that production should run about 8.5 million BPD this year and hit 9.6 million BPD next year, the highest level of production since 1970.
The Organization of Petroleum Exporting Countries (OPEC), which produces about 40 percent of the world�� oil, is forecasting similar supply growth. This past January production rose by 28,000 BPD to 29.71 million BPD, largely thanks to increased production from Libya. Including America�� production increase, non-OPEC countries are expected to boost their supply by 1.29 million BPD to 55.43 million BPD.
With consumption forecast to grow by about 1.3 million BPD in 2014, that leaves supply and demand in almost perfect balance, supporting strong oil prices even when and if the crisis in Ukraine abates.
Hot Railroad Stocks To Own For 2014: China HGS Real Estate Inc.(HGSH)
China HGS Real Estate Inc., through its subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd., engages in the real estate development in the People?s Republic of China. It is involved in the construction and sale of residential apartments, parking lots, and commercial properties. The company develops multi-layer, sub-high-rise, and high-rise apartment buildings, as well as office buildings. China HGS Real Estate Inc. was founded in 1995 and is headquartered in Hanzhong City, the People?s Republic of China.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top losers in the sector included China HGS Real Estate (NASDAQ: HGSH), off 4.8 percent, and China Life Insurance Co (NYSE: LFC), down 4 percent.
Hot Railroad Stocks To Own For 2014: Gentium SpA(GENT)
Gentium S.p.A., a biopharmaceutical company, focuses on the development and manufacture of its primary product candidate, defibrotide, an investigational drug based on a mixture of single-stranded and double-stranded DNA extracted from pig intestines. It develops defibrotide for the treatment and prevention of hepatic veno-occlusive disease (VOD), a condition that occurs when veins in the liver are blocked as a result of cancer treatments, such as chemotherapy or radiation, that are administered prior to stem cell transplantation. The company has completed a Phase III clinical trial of defibrotide for the treatment of severe VOD in the United States, Canada, and Israel; and a Phase II/III pediatric trial in Europe for the prevention of VOD. It also offers sulglicotide that is developed from swine duodenum, and has ulcer healing and gastrointestinal protective properties in South Korea; and urokinase, which is made from human urine to treat various vascular disorders, such as deep vein thrombosis and pulmonary embolisms. The company was formerly known as Pharma Research S.r.L. and changed its name to Gentium S.p.A. in July 2001. Gentium S.p.A. was founded in 1993 and is headquartered in Villa Guardia, Italy.
Advisors' Opinion:- [By Jake L'Ecuyer]
Shares of Jazz Pharmaceuticals Public Limited Company (NASDAQ: JAZZ) got a boost, shooting up 7.77 percent to $123.65 after the company announced its plans to buy Gentium SpA (NASDAQ: GENT) for around $1 billion.
Hot Railroad Stocks To Own For 2014: ResMed Inc (RMD)
ResMed Inc., (ResMed), incorporated on March 31, 1994, is a holding company for the ResMed Group. The Company, through its subsidiaries, is a developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. Sleep-disordered breathing (SDB) includes obstructive sleep apnea (OSA), and other respiratory disorders that occur during sleep. The Company has developed a number of products for SDB and other respiratory disorders including airflow generators, diagnostic products, mask systems, headgear and other accessories. Its manufacturing operations are located in Australia, Singapore, France, Germany, Malaysia and the United States. Its distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, Norway and Sweden. In December 2013, ResMed Inc acquired Unimedis SRO, a surgical appliance and manufacturing company.
Air Flow Generators
The Company produces continuous positive airway pressure (CPAP), variable positive airway pressure (VPAP) and AutoSet systems for the titration and treatment of SDB. The flow generator systems deliver positive airway pressure through a patient interface, either a small nasal mask, nasal pillows system, or full-face mask. Its VPAP units deliver bilevel therapy. There are two preset pressures: a higher pressure as the patient breathes in, and a lower pressure as the patient breathes out. AutoSet systems are based on a technology to monitor breathing and can also be used in the diagnosis, treatment and management of OSA. The Company�� Stellar 100 and 150 ventilation devices, provide both invasive and non invasive ventilation applications for adult and pediatric patients.
ResMed Inc.�� CPAP products include S8 Escape, S9 Elite and S9 Escape. Its VPAP products include VPAP III STA with QuickNav, VPAP S / VPAP IV, VPAP IV ST, S8 Auto 25, VPAP Tx Lab System, S9 VPAP S, S9 VPAP ST! , S9 VPAP Auto, S9 VPAP Adapt, S9 AutoSet CS, S9 Auto 25 and S9 VPAP COPD. The Company�� automatic positive airway pressure products include S9 AutoSet and S9 Escape Auto. Its ventilation products include Elisee 150, VS III and Stellar 100 and 150.
Masks, Accessories, Motors and Diagnostic Products
Masks, accessories, motors and diagnostic products together accounted for approximately 46% of its net revenues in fiscal 2012. Its Mask products include Activa LT, Swift LT for Her, Swift FX, Mirage SoftGel, Quattro FX, Swift FX for Her, Mirage FX, Mirage FX for Her, Pixi Pediatric Mask, Quattro FX for Her, Swift FX Bella, Quattro Air and Swift FX Nano. Its diagnostic products includes ApneaLink + Oximetry and ApneaLink Plus (U.S.)
Accessories and Other Products
The Company to assist those professionals diagnosing or managing the treatment of patients have data communications and control products, such as the EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan and ResTraxx modules that facilitate the transfer of data and other information to and from the flow generators. These products include humidifiers, such as H5i and H4i, which connect directly with the CPAP, VPAP and AutoSet flow generators to humidify and heat the air delivered to the patient, helping to prevent the drying of nasal passages that can cause discomfort. Other optional accessories include cold passover humidifiers, carry bags and breathing circuits. The Company�� data/patient management products include S9 Embletta Adapter, ResScan v3.14, ResTraxx v17.1., ResTraxx v18.3, ResScan v3.16 and EasyCare 1.0.
The Company competes with Philips BV, DeVilbiss Healthcare., Fisher & Paykel Healthcare Corporation Limited, Apex Medical Corp, BMC Medical Co. Ltd and Weinmann Gerate fur Medizin GmbH + Co. KG.
Advisors' Opinion:- [By Roberto Pedone]
Another earnings short-squeeze prospect is medical equipment player ResMed (RMD), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect ResMed to report revenue of $400.01 million on earnings of 64 cents per share.
The current short interest as a percentage of the float for ResMed is extremely high at 25.6%. That means that out of the 139.26 million shares in the tradable float, 35.89 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5%, or by about 1.72 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of RMD could easily trend sharply higher post-earnings as the shorts rush to cover some of their positions.
From a technical perspective, RMD is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. Shares of RMD have started to flirt with a near-term breakout trade today, since the stock has tested some past overhead resistance at $48.07 a share. That move is starting to push shares of RMD within range of triggering a much bigger breakout trade post-earnings.
If you're bullish on RMD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $51.22 to $51.32 share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.17 million shares. If that breakout hits post-earnings, then RMD will set up to re-fill some of its previous gap-down-day zone from October of 2013 that started just above $56 a share. If that gap gets filled with strong upside volume flows, then RMD could easily trend north of $60 a share.
I would simply avoid RMD or look for short-biased trades if after earnings
Hot Railroad Stocks To Own For 2014: Morgan Stanley(MS)
Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. It operates in three segments: Institutional Securities, Global Wealth Management Group, and Asset Management. The Institutional Securities segment offers financial advisory services on mergers and acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, exchange offers, and leveraged buyouts and takeover defenses, as well as shareholder relations, capital raising, corporate lending, and investments. This segment also engages in sales, trading, financing, and market-making activities, including equity trading, commodities, and interest rates, credit, and currencies, as well as financing services, such as prime brokerage, consolidated clearance, settlement, custody, financing, and portfolio reporting services. The Global Wealth Management Group segment provide s brokerage and investment advisory services covering various investment alternatives comprising equities, options, futures, foreign currencies, precious metals, fixed income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts, and mutual fund asset allocation programs; education savings programs, financial and wealth planning services, and annuity and insurance products; credit and other lending products; cash management services; retirement services; and trust and fiduciary services. The Asset Management segment offers products and services in equity, fixed income, and alternative investments, such as hedge funds, fund of funds, real estate, private equity, and infrastructure to institutional and retail clients through proprietary and third party distribution channels. This segment also involves in investment and merchant banking activities. The company was founded in 1935 and is headq uartered in New York.
Advisors' Opinion:- [By M. Joy Hayes]
Why would banks like Citigroup (NYSE: C ) , Morgan Stanley� (NYSE: MS ) , JPMorgan Chase� (NYSE: JPM ) , and Goldman Sachs� (NYSE: GS ) have policies that offer special financial benefits to employees taking government positions -- financial benefits that are usually reserved for employees who continue to work for the company?
- [By MONEYMORNING.COM]
The underwriters on the deal will be Credit Suisse Group (NYSE ADR: CS), Deutsche Bank AG (NYSE: DB), Goldman Sachs Group (NYSE: GS), JPMorgan Securities (NYSE: JPM), Morgan Stanley (NYSE: MS), and Citigroup Inc. (NYSE: C).
- [By Amanda Alix]
Also, while the debt of healthy companies is less onerous, those on shakier ground will obviously carry more risk. Citigroup (NYSE: C ) has been active in originating collateralized debt obligations�backed by subprime auto loans, and Goldman Sachs (NYSE: GS ) has been selling the debt of companies with ratings of CCC -- or lower. Many of these loans were covenant lite, and according to analysts at Morgan Stanley (NYSE: MS ) �-- also a player in the CLO market -- sales of these instruments have been brisk.
Hot Railroad Stocks To Own For 2014: Intelligent Living Inc (ILIV)
Intelligent Living Inc., formerly Feel Golf Co., Inc., incorporated on February 14, 2000, is a developer of healthy aging software tracking systems and wellness centers, which will provide integrated services promoting optimal health and wellness programs. The services to be offered by the Company are personalized programs and regimens developed by nutritionists, fitness specialists and hormone replacement therapists. The Company focuses to offer the benefits of tailored nutritional programs and its products, combined with healthy-aging bio-identical hormone replacement therapies (BHRT). The Company provides services, such as Age Management Medicine, Excercise & Nutrition, MIND360.COM, Nutraceuticals, Hormone Therapy, and Business Solutions.
Age Management Medicine
The Company's Age Management Medicine is a proactive and preventative approach to healthcare for an aging population. The basic tenets of Age Management Medicine include medical history examination of the patient, a thorough lifestyle assessment, and physical and laboratory evaluations, which are used to establish personalized treatment plans.
Business Solutions
The Company is in the development stages of launching its own Electronic Medical Records software. The product will be a Web-based clinical application for the management of patients with hormone and other chronic conditions.
Excercise & Nutrition
The Company has on-site fitness specialists and nutritionists to help one attain goals. Depending on personal goals, personalized consultations are available at their request.
Hormone Therapy
The Company works directly with a pharmacy that compounds products for hormone replacement therapy (HRT). It serves both men and women.
MIND360.COM
Mind360 enhances and maintains people�� mental fitness through an online cognitive training platform. Its engaging brain training games are designed to help strengthen ke! y cognitive functions, including memory, attention, executive functions, thinking and reasoning, and visual perception. Mind360 has over 10,000 users in every continent with more than 40 games.
Nutraceuticals
The Company is focused on optimizing health goals through proper nutrition and dietary supplementation. Its Nutraceutical products support this proactive approach to healthy aging and helps reduce the negative effects of aging and improve quality of life. The Company's Nutraceutical line of products are formulated by both pharmacists and physicians.
Advisors' Opinion:- [By Peter Graham]
Small cap healthcare and lifestyle stocks Axxess Pharma Inc (OTCMKTS: AXXE), Medefile International Inc (OTCMKTS: MDFI) and Intelligent Living Inc (OTCMKTS: ILIV) have all been getting some extra attention lately thanks in part to a few disclosed paid promotions or investor relations type of activities. But just how healthy are these small cap stocks for investors and traders alike? Here is a quick reality check:
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