Real estate websites Zillow Inc. (Nasdaq: Z) and Trulia Inc. (NYSE: TRLA) saw their stocks soar yesterday (Thursday) on rumors that the sector's top two leaders would merge. Z stock surged more than 15.3% to $145.76 and TRLA roared ahead 32.4% to $53.74 after the deal news broke.
But there is little supporting this rise for the long term.
The two real estate search engines are almost identical in what they do. They serve as a portal that connects potential homebuyers with real estate professionals, and together they lead the sector in real estate search traffic.
They are so similar, in fact, that at one point Zillow filed a lawsuit against Trulia, claiming that TRLA's property valuation tools infringed upon Z's patent of their signature "Zestimate" home value estimation service.
But their business purpose isn't the only thing these companies share; there's a more damaging common factor... �
The Problem with the Z-TRLA DealWhat many traders and industry analysts have noticed and commented on is that behind this deal - and surging share prices - are two money-losing businesses.
Best Long Term Companies To Buy For 2015: Sony Corp Ord(SNE)
Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company offers consumer products and devices, including televisions, video cameras, compact digital cameras and interchangeable single-lens cameras, Blu-ray Disc players/recorders, DVD-video players/recorders, home theaters and audio systems, and portable audio and car audio products. It also provides charged coupled devices, complementary metal-oxide semiconductor image sensors, system LSIs, small- and medium-sized LCD panels, and other semiconductors; and components, such as batteries, optical disk drives, chemical products, audio/video/data recording media, storage media, and optical pickups. In addition, the company develops, produces, markets, and distributes games, such as PlayStation3, PlayStation Portable, and PlayStation 2 hardware and related software; and PCs and flash memory digital audio pl ayers, as well as manufactures broadcast- and professional-use products, Blu-ray discs, DVDs, and CD discs. Further, it produces and distributes motion pictures and television programs, and home entertainment; creates and distributes digital content; operates television networks and studio facilities; and develops entertainment products, services, and technologies. Additionally, the company engages in the music publishing business, as well as provision of various financial services, including insurance, savings products, loans, and credit financing services; and a network service business and an advertising agency business. It also involves in research, development, design, production, marketing, sales, distribution, and servicing mobile phones, accessories, services, and applications. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in 1958. Sony Corporation was founded in 1946 and is based in Tokyo, Japan.
Advisors' Opinion:- [By Chris Hill]
Shares of Sony (NYSE: SNE ) rise after the company's new PlayStation4 game console is priced at $399. Softbank raised its offer to buy Sprint Nextel (NYSE: S ) by $1.5 billion. Dole Food (NYSE: DOLE ) CEO David Murdock offers to buy the entire company. And bricks-and-mortar retailer GameStop (NYSE: GME ) also gets a boost from Sony's news that the new PlayStation4 will allow unlimited used-game sales. In this installment of Investor Beat, our analysts discuss four stocks making big moves.
- [By Evan Niu, CFA]
Not long ago, Ouya represented a potentially disruptive threat to console gaming. The affordable $99 gaming console that was looking to borrow from mobile platforms in more ways than one had serious potential to hurt Microsoft (NASDAQ: MSFT ) and Sony (NYSE: SNE ) just as they prepare to release their respective next-generation consoles.
Best Long Term Companies To Buy For 2015: Freescale Semiconductor Inc (FSL)
Freescale Semiconductor, Ltd. provides embedded processing solutions for automotive, networking, industrial, and consumer markets worldwide. The company�s embedded processor products comprise microcontrollers, such as ultra low power, low end 8-bit, and 32-bit products with on-board flash memory, which provide the digital logic or intelligence for electronic applications; single-and multi-core microprocessors; and applications processors with embedded memory, and special purpose hardware and software for multimedia applications. It also offers wireless connectivity products for low power wireless communications functionality; communications processors that perform tasks related to control and management of digital data, and network interfaces; and radio frequency (RF) devices, which consist of power transistors, amplifiers, receivers, and tuners for amplifying RF signals. In addition, the company provides analog, mixed-signal, and power management integrated circuits (ICs ) that include switches, power management devices, battery and motor control devices, CAN/LIN network transceivers, and signal conditioners that perform audio processing, backlight management/control, power management, and charging functions; sensors comprising pressure, inertial, magnetic, and proximity sensors, which act as an interface between an embedded system and external environment; and cellular products consisting of baseband processors, power management ICs, and RF subsystems. It sells its products to original equipment manufacturers, distributors, original design manufacturers, and contract manufacturers through its direct sales force and distributors. The company was formerly known as Freescale Semiconductor Holdings I, Ltd. and changed its name to Freescale Semiconductor, Ltd. in April 2012. The company was incorporated in 2006 and is headquartered in Austin, Texas. Freescale Semiconductor, Ltd. is a subsidiary of Freescale Holdings L.P.
Advisors' Opinion:- [By Alex Planes]
The Internet of Things is about to get a little smaller. Make that a lot smaller -- so small you could put it on a pill and become a thing on the Internet yourself. Freescale Semiconductor (NYSE: FSL ) unveiled a new ARM Holdings (NASDAQ: ARMH ) -based microcontroller chip last month, dubbed the Kinetis KL02, that has everything necessary on board to produce, track, record, and analyze the essential information that device creators might need in a package smaller than your pinky toenail. That's it over to the left -- all 1.9 millimeters by 2 millimeters of it.
- [By Lee Jackson]
Freescale Semiconductor Ltd. (NYSE: FSL) also has a less than 10% exposure in sales to Cisco. With a large percentage of sales, totaling close to 30% to the growing automotive sector, Freescale may be able to dodge lower orders for its digital networking chips. The consensus price target for the stock is $19.
- [By Evan Niu, CFA]
What: Shares of Freescale (NYSE: FSL ) have skyrocketed today by upwards of 12% after the semiconductor specialist posted first-quarter earnings results.
- [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 Freescale Semiconductor (NYSE: FSL ) , whose recent revenue and earnings are plotted below.
Top 5 Companies To Own For 2015: Koninklijke DSM NV (RDSMY.PK)
Koninklijke DSM N.V. (DSM), incorporated on December 28, 1966, is engaged in creating products and services in Life Sciences and Materials Sciences. DSM�� products and services are used in a range of markets and applications. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. The activities of DSM are grouped into five clusters: Nutrition, Pharma, Performance Materials, Polymer Intermediates, and Base Chemicals and Materials. In May 2010, Orascom Construction Industries announced that the acquisition of the Company�� agro and melamine businesses has been finalized. DSM completed the disposal of DSM Energie Holding B.V. (DSM Energy) to TAQA Abu Dhabi National Energy Company PJSC on September 30, 2009. In September 2010, the Company acquired Microbia, Inc. from Ironwood Pharmaceuticals, Inc. In December 2010, the Company completed the sale of DSM Special Products B.V. to Emerald Performance Materials. In February 2011, the Company completed the acquisition of Martek Biosciences Corporation. In May 2011, the Company sold DSM Elastomers to Lanxess AG. In June 2012, the Company acquired Kensey Nash Corporation (Kensey Nash).
Nutrition
The Nutrition cluster comprises DSM Nutritional Products and DSM Food Specialties. The nutrition and food ingredients businesses serve the food, feed, cosmetic and pharmaceutical industries. DSM holds positions in the markets for ingredients for human and animal nutrition and health. DSM Nutritional Products is the supplier of vitamins, carotenoids, nutritional ingredients, ultra-violet (UV) filters and premixes for human and animal nutrition and health. DSM Nutritional Products is organized around two entities: Animal Nutrition and Health (ANH) and Human Nutrition and Health (HNH). DSM Food Specialties is a global manufacturer of food enzymes, cultures, yeast extracts and other specialty ingredients for the food and b! everage industries.
DSM Food Specialties comprises two business units and an Ingredients Development Unit. Enzymes & Dairy Ingredients supplies a range of food enzymes for applications such as dairy, baking, fruit processing, brewing and wine, starter cultures for cheese and yogurt, preservation solutions for cheese and meat, and tests for the detection of residues of antibiotics in milk. Savoury Ingredients is a major supplier of ingredients for flavorings and flavor enhancers (such as yeast extracts) used in products, such as soups, instant meals, sauces and savory snacks.
Pharma
The Pharma cluster comprises the business groups DSM Pharmaceutical Products (DPP) and DSM Anti-Infectives. DSM is an independent supplier to the pharmaceutical industry. DSM Pharmaceutical Products is a provider of custom contract manufacturing and development services to the pharmaceutical, biopharmaceutical and agrochemical industries.
DSM Pharmaceutical Products consists of three business units: DSM Pharma Chemicals (custom chemical manufacturing services for complex registered intermediates and active pharmaceutical ingredients (APIs), including DSM Exclusive Synthesis (custom manufacturing services for the crop protection industry), DSM Biologics (biopharmaceutical manufacturing technology and services) and DSM Pharmaceuticals, Inc. (finished-dose-form manufacturing services). DSM BioSolutions focuses on custom manufacturing services based on microbial fermentation. DSM Anti-Infectives holds global leadership positions in penicillin G, penicillin intermediates (6-APA and 7-ADCA), active pharmaceutical ingredients such as semi-synthetic penicillins and semi-synthetic cefalosporins (beta-lactams), and other active ingredients, such as nystatin.
Performance Materials
The Performance Materials cluster comprises the business groups DSM Engineering Plastics, DSM Dyneema and DSM Resins. The products are used in a variety of end-use markets: the au! tomotive ! industry, the aviation industry, the electrical and electronics industry, the sports and leisure industries, the paint and coatings industry and the construction industry.
DSM Engineering Plastics is a global player in polyamides, polyesters, polycarbonates and adhesive resins. These materials are used in components for the electrical and electronics, automotive, engineering and packaging industries. DSM produces Dyneema fiber and UD (unidirectional textile sheets) in Heerlen (Netherlands) and in Greenville (North Carolina, United States) through its gel-spinning process. DSM Resins consists of four business units: DSM NeoResins+, DSM Powder Coating Resins, DSM Desotech and DSM Composite Resins.
Polymer Intermediates
The Polymer Intermediates cluster consists of DSM Fiber Intermediates. DSM Fibre Intermediates produces caprolactam and acrylonitrile, which are raw materials for synthetic fibers and engineering plastics. Other products include ammonium sulfate (a fertilizer), diaminobutane, sodium cyanide and cyclohexanone. DSM�� caprolactam production capacity is more than 600,000 tons per annum.
Base Chemicals and Materials
The Base Chemicals and Materials cluster consists of DSM Agro, DSM Melamine, DSM Elastomers and a number of activities that have been carved out from other clusters. DSM Agro produces fertilizers and is active in Northwestern Europe. DSM Melamine is a producer of melamine, used in wood-based panels and laminates for furniture and flooring. DSM Elastomers manufactures synthetic rubbers (EPDM) for use in cars and other transportation vehicles, white goods, various industrial products and construction materials and as motor-oil additives.
DSM Agro is a producer of ammonia and high-nitrogen fertilizers for grasslands and agricultural crops; products and services for responsible fertilization. DSM Agro sells about 2.4 million tons of fertilizers per year. The Base Chemicals and Materials cluster also includes! several ! activities that have been carved out from other clusters. These include Citric Acid, DSM Special Products and the Maleic Anhydride and derivatives business.
Other activities
Other activities comprise various activities and businesses that do not belong to any of the five reporting clusters. It consists of both operating and service activities and also includes a number of costs that cannot be logically allocated to the clusters. Other activities includes the DSM Innovation Center, DSM Venturing and a number of other activities, such as Sitech Services, EdeA, DSM Insurances and part of the costs of corporate activities. Sitech Services provides technological consultancy, expertise in energy and auxiliary materials, the supply of utilities and human resources.
EdeA VoF owns, operates and maintains most of the production and distribution facilities for utilities (for example steam, power and water) at the Chemelot site in Sittard-Geleen (Netherlands). EdeA VoF is a joint venture with Essent, an energy production and distribution company. DSM�� stake is 50%. DSM retains a limited part of its Property Damage and Business Interruption and Product Liability risks via a captive insurance company. DSM has a share in a limited number of associates.
Advisors' Opinion:- [By Markus Aarnio]
BioAmber expects its advanced bio-based specialty chemicals to compete with petrochemical equivalents that are proven in the market and manufactured by established companies, such as Gadiv Petrochemical Industries, Kawasaki Kasei, DSM (RDSMY.PK) and numerous small Chinese producers including Anqing Hexing Chemical, and Anhui Sunsing Chemicals. In addition, BioAmber's products will compete against other companies in the bio-based specialty chemical industry, both early stage companies, such as Genomatica (for bio-based 1,4 BDO) and Myriant Corporation (for bio-succinic acid), and established companies, such as a collaborative venture between DSM and Roquette Frères S.A. and a collaborative venture between BASF (BASFY.PK) and Purac (both for bio-succinic acid).
Best Long Term Companies To Buy For 2015: Groupe Steria SCA (RIA)
Groupe Steria SCA is a France-based holding company engaged in the provision of end-to-end information technology (IT) services. The Company�� business is divided into four segments: Systems Integration, offering design and development of system; Application Management, providing maintenance and supervision of the stages in the life cycle of software applications; Management of IT Infrastructure, providing technical and business assistance, supervision of systems and network infrastructures, administration and operation of systems and network infrastructures, and hosting infrastructures in data centers; and Business Process Outsourcing (BPO), providing taking over the operation of part or all of business function on behalf of the customer. The Company is operational mainly in the United Kingdom, France, Germany and other European countries. The Company has subsidiaries in France, Morocco, the United Kingdom, India, Germany, Austria and Poland, among others. Advisors' Opinion:- [By victorselva]
The Charles Schwab Corporation (SCHW) is a savings and loan holding company. The company is engaged, through its subsidiaries, in securities brokerage, banking, money management, and financial advisory services. Its subsidiaries include Charles Schwab & Co. (a leading discount broker-dealer), Charles Schwab Investment Management (a mutual fund investment advisor) and Charles Schwab Bank.In this article, let's take a look at this brokerage firm and try to explain to investors the reasons this is an apparently appealing investment opportunity.The FocusThe company provides financial services to individuals and institutional clients through two segments: Investor Services and Institutional Services. The Investor Services segment provides retail brokerage and banking services to individual investors. The Institutional Services segment provides custodial, trading, and support services to independent investment advisors. The Institutional Services segment also provides retirement plan services, specialty brokerage services, and mutual fund clearing services. The company seeks to meet the financial services needs of investors, advisers and employers. It focuses on building client loyalty with the goal of attracting new clients and serving them. Additionally, Schwab麓s strengths through shared core processes and technology advances which help create services that are scalable and consistent with the business.Interest Rates, Capital Structure and Debt-to-Capital RatioThe results are dependent on short-term interest rates, as 37% of its top line came from net interest income in the first quarter of 2014.The broker has been making significant efforts to become less dependent on interest rates, which we expect Federal Reserve will raise them in late 2014 or 2015. Also, the company麓s plan is to reach a low-cost capital structure and targets a long-term debt-to-total financial capital ratio of less than 30%.Lucrative Derivatives Trading In 2011, the company acquired Compl
Best Long Term Companies To Buy For 2015: LMP Real Estate Income Fund Inc (RIT)
LMP Real Estate Income Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund�� primary investment objective is to provide high current income. Its secondary investment objective is capital appreciation. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund�� investment manager and AEW Management and Advisors, L.P. (AEW) is the Fund�� subadviser. LMPFA is a wholly owned subsidiary of Legg Mason, Inc.
The Fund invests in securities related to the real estate industry. Its portfolio includes common stocks, preferred stocks and short-term investments. The Fund invests in sectors, such as office, healthcare, diversified, apartments, industrial, shopping centers, home financing, lodging/resorts, regional malls and specialty.
Advisors' Opinion:- [By GURUFOCUS]
Special Purpose Funds- Eaton Vance Tax-Adv. Global Dividend Oppor. Fund (ETO) | Yield: 7.3%
- The Gabelli Global Utility & Income Trust (GLU) | Yield: 6.2%
- Pimco Global Stocksplus Income Fund (PGP) | Yield: 9.5%
- LMP Real Estate Income Fund Inc. (RIT) | Yield: 7.0% - [By Joe Eqcome]
Actionable Items:
Highest Positive Spread: Nuveen Mortgage Opportunity Term Fund (JLS)Focus Stock: LMP Real Estate Income Fund (RIT)Last Week's Focus Stock: ASA Gold and Precious Metals (ASA)ECB cuts its rates: The European Central Bank (ECB) will cut its benchmark rate a quarter-of-a-point to 0.5%.
Best Long Term Companies To Buy For 2015: International Tower Hill Mines Ltd (THM)
International Tower Hill Mines Ltd. (ITH) is an exploration-stage company. The Company is engaged in the business of acquiring, exploring and evaluating mineral properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. As of December 31, 2011, the Company controlled a 100% interest in its Livengood project in Alaska, the United States. The Livengood property is located approximately 115 kilometers northwest of Fairbanks, Alaska in the Tolovana Mining District within the Tintina Gold Belt. The property is approximately 145 square kilometers and consists of fee land leased from the Alaska Mental Health Trust. The project area is centered on Money Knob. Advisors' Opinion:- [By Anthony Mirhaydari]
For now, I continue to recommend investors maintain a cautious stance, focusing on the buying interest coming into safe-haven assets like U.S. Treasury bond and precious metals while booking profits in biotech stocks that have been red hot this month. The leveraged Direxion 3x Treasury Bond Bull (TMF) is up nearly 7% in my Edge Letter Sample Portfolio since it was added on Jan. 10. I just sold Tower Hill Mines (THM) and Rosetta Genomics (ROSG) for gains of 46% and 18% respectively.
Best Long Term Companies To Buy For 2015: LTC Properties Inc (LTC)
LTC Properties, Inc., incorporated on May 12, 1992, a health care real estate investment trust (REIT). The Company invests primarily in senior housing and long term care properties through property lease transactions, mortgage loans and other investments. Its primary senior housing and long term healthcare property types include skilled nursing properties (SNF), assisted living properties (ALF), independent living properties (ILF) and combinations thereof. During 2011, it leased a private school property to a non-for-profit corporation providing therapeutic support and intensive home, school and center-based behavioral therapy for children, youth and families affected by Autism Spectrum Disorders. The Company, during 2011, acquired a 196-bed skilled nursing property. It purchased a 140-bed skilled nursing property located in Texas during 2011. During December 31, 2011, it acquired a vacant parcel of land in Texas. The Company, on March 26, 2012, acquired a skilled nursing property with 144 licensed beds. In May 2012, the Company acquired a 3.16 acre vacant parcel of land in Colorado. In July 2012, the Company acquired a skilled nursing property with 90 licensed beds. In August 2012, it acquired two skilled nursing facilities with a total of 288 licensed beds. In January 2013, the Company purchased two parcels of land.
As of 2011, it has investments in 12 states that include mortgages to 14 different operators. Skilled nursing facilities provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient's family, private health insurance, or through the federal Medicare or state Medicaid programs.
Assisted living facilities serve elderly persons who require assistance w! ith activities of daily living, but do not require the constant supervision skilled nursing facilities provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs.
Independent living facilities, also known as retirement communities or senior apartments, offer a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers.
One of the properties in the Company�� real estate investment portfolio is a charter school. Charter schools provide an alternative to the traditional public school. Charter schools are autonomous entities authorized by the state or locality to conduct operations independent from the surrounding public school district. Laws vary by state, but generally charters are granted by state boards of education either directly or in conjunction with local school districts or public universities. Operators are granted charters to establish and operate schools based on the goals and objectives set forth in the charter. Upon receipt of a charter, schools receive an annuity from the state for each student enrolled. The other school in the Company�� investment portfolio is a private school and is closed and classified as held-for-sale.
As of 2011, the Company had investments in 25 states leased to 30 different operators. The Company�� owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 10 to 15 years. Many of the leases contain renewal options and! one cont! ains limited period options that permit the operator to purchase the property. The leases provide for fixed minimum base rent during the initial and renewal periods. The majority of the Company�� leases contain provisions for specified annual increases over the rents.
Advisors' Opinion:- [By GURUFOCUS]
LTC Properties Inc. (LTC) operates as a health care real estate investment trust (REIT) in the United States.Yield: 5.2%
Gladstone Commercial Corporation (GOOD) operates as a real estate investment trust (REIT) in the United States.Yield: 7.9%
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