Choosing the right company
It is paramount for an investor to pinpoint the right company. This implies identifying a company which offers growth opportunities. Growth that is not just sustainable but also superior (that is, minimum 20 per cent) as well as profitable.
That is to say, the company should earn a superior return (of not less than 20 per cent) on its shareholders�capital (net worth).
Getting the investment 'time' perspective right
'Time is money' is a one-liner that says it all when it comes to equities! Timing your investment is extremely crucial. In terms of the investment 'time' perspective, in the short-run (typically 3 to 6 months), the performance of equity shares is driven more by market sentiment than by company fundamentals.So, you should invest so that you can participate in and benefit from the company's growth. Keeping this in mind, the ideal period to stay invested should preferably be greater than 5 years.
You would learn that in the long run, the relevance of the right price diminishes. If you choose the right company and have the right time perspective, in the longer term, it doesn't really matter too much whether you bought it at the lowest (right) price or not. This is because as long as the company is growing and you hold on to your investment, the Power of Compounding will multiply the value of your investment at a rate that will make the initial investment price insignificant. This makes a real mantra for wealth creation!
Returns you will earn
Top 10 Gas Stocks To Own Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Lee Jackson]
Schlumberger Ltd. (NYSE: SLB) is a top mega cap oil field services stock rated as an Overweight at Baird. Strong offshore drilling activity combined with a seasonal rebound in western Canadian activity have driven Schlumberger’s recent growth. The company said it expects double-digit earnings growth for the rest of the year when it reported earnings recently. For 2014 and beyond, Schlumberger sees five markets providing strong growth: Russia, Sub-Saharan Africa, the Middle East, China and Australia. Shareholders are paid a 1.8% dividend. The consensus price target is $110.83. Schlumberger closed Thursday at $91.11.
- [By David Smith]
Big and not so big at your service
In the services sector, perhaps the most difficult to comprehend of the sub-sectors, you likely have a good handle on the kingpin, Schlumberger (NYSE: SLB ) . The company, with a $100 billion market cap, operates in about 85 countries, through the efforts of more than 100,000 employees. Its services include everything from soup to nuts, or seismic to production assistance. So, if you're looking for an ideal company to constitute a single proxy for the services contingent, Schlumberger's a good bet.
Top 10 Value Stocks To Own Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Arie Goren]
After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP ) has earned a coveted five-star ranking.
Top 10 Value Stocks To Own Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Mani]
Dollar Tree, Inc. (NASDAQ:DLTR) is one of the companies that are set to exploit the ongoing trend of consumers' increasing focus on value with significant opportunity to grow its store base, and expand margins.
- [By Ben Levisohn]
Shares of Supervalu have dropped 8.3% to $6.31 at 2:59 p.m., within spitting distance of Goldman’s $6 target price, while competitors Family Dollar Stores (FDO) has gained 0.2% to $70.16,�Dollar General�(DG) has fallen 0.4% t0 $59.02,�Dollar Tree (DLTR) is off 1% to $59.33 and Wal-Mart (WMT) is little changed at $79.19.
- [By Victor Reklaitis]
Today�� movers & shakers: Retailers have dropped in the wake of disappointing quarterly results or outlooks. Target Corp. (TGT) �was down 4% after posting weaker margins and earnings at its U.S. business, while Dollar Tree Inc. (DLTR) �dropped 4% after its earnings fell in the third quarter. Read more in the Movers & Shakers column.
- [By Rich Duprey]
Deep discounter Dollar Tree (NASDAQ: DLTR ) announced today that its current chief operating officer, Gary Philbin, will now also carry the title of president, a position previously held by company CEO Bob Sasser.
Top 10 Value Stocks To Own Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Jeremy Bowman]
Caterpillar (NYSE: CAT ) was the worst performer out of the 30 Dow components, falling 1.5%. Talks between the construction equipment maker and a Milwaukee union fell apart after workers rejected a new contract that would have frozen wages for current employees and paid new employees a lower wage. Shares of Caterpillar had increased more than 10% in the last three weeks so the stock may just be cooling off after its bullish run.
- [By WALLSTCHEATSHEET]
Caterpillar is a provider of construction and related industrial products and services during a time where countries around the world are seeing expansion. The stock has not done so well in the last year as it trades at the low-end of an established price range. Over the last four quarters, earnings and revenue figures have been mixed which has surprisingly sat well with investors in the company. Relative to its peers and sector, Caterpillar has been a poor year-to-date performer. WAIT AND SEE what Caterpillar does in coming quarters.
- [By Mike Deane]
Before the opening bell on Monday, Caterpillar Inc. (CAT) announced its fourth quarter and full year earnings, posting lower revenue compared to last year’s quarterly and FY results.
CAT’s Earnings in Brief
Caterpillar reported fourth quarter revenues of $14.402 billion, down 10% from last year’s Q4 revenue of $16.075 billion. The company’s Q4 profit came in at $1 billion, up from last year’s Q4 profit of $697 million. SWK’s EPS for the quarter was $1.54, up from last year’s Q4 EPS of $1.04. CAT beat analysts’ estimates of $1.28 EPS on revenues of $13.64 billion. For the full year, CAT posted revenues of $55.565 billion, down from $65.875 billion, and profit of $3.789 billion versus last year’s $5.681 billion. For the FY2014, CAT expects EPS of $5.85.CEO Commentary
Caterpillar’s chairman and CEO Doug Oberhelman had the following comments about the company’s earnings:�”In such a challenging environment, I am proud of the way our employees came together in 2013. Despite a sales and revenues decline of about $10 billion, we set a record for operating cash flow, strengthened our balance sheet and improved our overall market position for machines. We continued to improve safety in our facilities and the quality of the products we ship each day. Cost flexibility is critical to our strategy and was a significant focus in 2013 as we took substantial actions to help maintain profitability as sales declined. Excluding the impact of cost absorption our�manufacturing costs�and SG&A and R&D expenses were favorable by $1.2 billion compared with 2012. It wasn’t easy, especially for our employees who endured an incredibly tough year, but the actions we initiated helped us deliver strong operational performance in 2013.”
CAT’s Dividend and Stock Buyback
Caterpillar did not announced any changes to its dividend in its earnings report. The compa
- [By DAG1996]
Opportunity Highlights:
The market is overreacting to recent company-specific news.Coinciding market weakness is likely to present a buying opportunity.Forward P/E = 11.87Next 5-year annual EPS growth estimate >41%.Manitowoc 24% gross margin [ttm] is the highest in the Heavy Machinery & Vehicles industry and is growing.In Q2, Manitowoc Crane revenue grew 7.6% year over year, while competitor Terex (TEX) crane revenue grew only 3.2% and Caterpillar (CAT) construction business revenue declined 9%.Morgan Stanley notes: "We believe that Manitowoc can add 12% and 31% upside to EPS in the event of a modest and robust non-residential construction recovery, respectively."Stifel Nicolaus rates Manitowoc a "buy" with a $25 price target.Why is there an opportunity in Manitowoc shares?
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