Stocks crept higher again today as the S&P 500 set another record at 1,597, coming within inches of the 1,600 milestone. The Dow Jones Industrial Average (DJINDICES: ^DJI ) , meanwhile, moved up 21 points, or 0.14%, to finish at 14,840.
Economic reports were mixed as the Chicago PMI dipped into contraction range with a rating of 49.0, hitting a three-and-a-half year low. The figure was significantly coming below projections of 52.0 and down from last month's total of 52.4. Stocks fell off after the report, but began to recover after a better-than-expected consumer confidence report came out. The Conference Board said consumers' perception of the economy jumped from 59.7 last month to 68.1 in April, well ahead of expectations of just 61.0. The recovery in home prices and record-high stocks helped lift consumer sentiment.
The two contradicting reports presented a muddled message for investors trying to decipher which direction the economy is headed.
Turning to individual stocks, Pfizer (NYSE: PFE ) tumbled 4.5% after releasing earnings this morning. The drugmaker fell off as it cut guidance and turned in an EPS of $0.54 a share, a penny below estimates. Revenue, however, was down 9% from a year ago, at $13.5 billion, missing analysts' mark by about 4%. Pfizer has struggled to overcome the expiration of its patent on Lipitor, which was the world's best-selling drug for a decade. Generic competition is also eating into margins on other Pfizer brands as the company is now cutting costs to try to grow profits, and is focusing on developing very expensive drugs for limited markets and targeting China. Pfizer cut its full-year EPS forecast by $0.06 to $2.14-$2.24, and dropped its revenue forecast as well, in part due to currency translation weakness.
Best Low Price Companies To Invest In Right Now: Diana Shipping inc. (DSX)
Diana Shipping Inc. provides shipping transportation services. It transports dry bulk cargoes that include commodities, such as iron ore, coal, grain, and other materials along worldwide shipping routes. As of December 31, 2010, the company?s fleet consisted of 23 dry bulk carriers, including 14 Panamax, 1 Post-Panamax, and 8 Capesize dry bulk carriers with a combined carrying capacity of approximately 2.5 million deadweight tonnage. Its customers include national, regional, and international companies. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was founded in 1999 and is based in Athens, Greece.
Advisors' Opinion:- [By Nickey Friedman]
China announced it is shooting for 7.5% GDP for 2014. At the sound of that target, DryShips (NASDAQ: DRYS ) and�Diana Shipping (NYSE: DSX ) are likely celebrating. China is the primary country these days responsible for rising market rates for dry shipping, but something in the announcement may warrant a bit of caution.
Best Penny Companies To Invest In 2014: NET Servicos de Comunicacao S.A.(NETC)
Net Servicos de Comunicacao S.A., through its subsidiaries, provides cable television, Internet access, and voice services in Brazil. It offers cable television services under the ?NET? brand name through various cable networks located in the largest cities of Brazil. The company also offers broadband Internet access services under the ?NET VIRTUA? brand name by using Embratel's IP backbone infrastructure. In addition, it provides voice services under the ?NET FONE VIA EMBRATEL? brand name jointly with Embratel. Further, the company offers integrated video, broadband, and voice services. Net Servicos de Comunicacao S.A. was founded in 1994 and is headquartered in Sao Paulo, Brazil.
Advisors' Opinion:- [By Vanina Egea] offers bundled services and has aggressively expanded its Internet and TV subscriber base in the state.
Investing for Long-term Growth
Looking forward, Telef贸nica Brasil is investing in technology and network expansion to further empower its competitive position. The firm is expanding its 3G network based on CDMA EV-DO and HSPA technologies, which provide a great advantage over its peers. Further, it expects to benefit from the growth opportunities in the 4G market. Consequently, it has signed a deal with Ceragon Networks Ltd. (CRNT) to deploy the superfast 4G network nationwide.
A Valuable Stock
Telef贸nica Brasil has a healthy balance sheet with strong cash flow generation (up to 9,576 million in 2013 from 3,488 million in 2011) and reasonable debt levels. Its net debt-to-EBITDA ratio is of 0.17 times and it has a debt- to-equity ratio of 0.2 against its peers��average of 0.9. Its financial strength and a robust dividend have attracted investment gurus like Charles Brandes (Trades, Portfolio) and David Dreman (Trades, Portfolio), who have recently incorporated the company to its portfolio.
Considering the stock�� trading price of 14.6x its trailing earnings compared to the peer group average of 16.90x, and a compelling dividend yield of 7.30 with a payout ratio of 1.1 (against its competitors��median of 3.53 and 0.62, respectively), I believe this stock is a worthy investment opportunity with excellent growth potential.
Disclosure: Vanina Egea holds no position in any stocks mentioned.
Also check out: Charles Brandes Undervalued Stocks Charles Brandes Top Growth Companies Charles Brandes High Yield stocks, and Stocks that Charles Brandes keeps buyingAbout the author:Vanina EgeaA fundamental analyst at Lone Tree AnalyticsVisit Vanina Egea's Website
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Best Penny Companies To Invest In 2014: Books-A-Million Inc.(BAMM)
Books-A-Million, Inc. operates as a book retailer in the southeastern United States. The company operates superstores and traditional bookstores that offer a selection of hardcover and paperback books, magazines, and newspapers. It also offers other merchandise, including gifts, cards, collectibles, magazines, music, DVDs, and electronic accessories, as well as coffee, tea, and other edible products. The company markets its products under the trademarks of Books-A-Million, BAM! Books-A-Million, Bookland, Books & Co., Millionaire?s Club, Sweet Water Press, Thanks-A-Million, Big Fat Coloring Book, Up All Night Reader, Read & Save Rebate, Readables Accessories for Readers, Kids-A-Million, Teachers First, The Write-Price, Bambeanos, Hold That Thought, Book$mart, BAMM, BAMM.com, BOOKSAMILLION.com, Chillatte, Joe Muggs Newsstand, Page Pets, JOEMUGGS.com, FAITHPOINT.com, Faithmark, Joe Muggs, Anderson?s Bookland, Snow Joe, Summer Says, On the John University, OTJU, American Whole sale Book Company, AWBC, and NetCentral. It also offers its products over the Internet at Booksamillion.com. As of August 11, 2011, the company operated 231 stores in 23 states and the District of Columbia. Books-A-Million, Inc. was founded in 1917 and is based in Birmingham, Alabama.
Advisors' Opinion:- [By John Udovich]
Vitamin Shoppe Inc (NYSE: VSI), Books-A-Million, Inc (NASDAQ: BAMM) and Perfumania Holdings, Inc (NASDAQ: PERF) have the dubious distinction of being�the worst performing small cap�specialty retail stocks for this year (according to Finviz.com) with losses of 4.85% and�3% and a gain of 0.61%, respectively, since the start of the year (See my previous article: This Year�� Best Performing Small Cap Specialty Retail Stocks? UNTD, TA & HZO). I should mention that the definition of specialty retail stocks might vary from one stock screener to another, but what�� clear is that these three small cap retail stocks have been heading in the wrong direction for investors for much of this year. �With that in mind, what sort of performance should investors expect from these small cap specialty retail stocks on Black Friday and for the all important holiday season? Here is what you need to be aware of:
Best Penny Companies To Invest In 2014: Jinpan International Limited(JST)
Jinpan International Limited engages in the design and manufacture of cast resin transformers for voltage distribution equipment. Its cast resin transformers allow high voltage transmissions of electricity to be distributed to various locations in lower, more usable voltages. The company provides medium voltage cast resin transformers for various end uses and applications, including industrial, infrastructure, and municipal projects, such as factories, real estate developments, airports, and subway systems. It also offers switchgears, which enable operators of a power distribution network to switch equipment in and out of the network; line reactors that limit current, filter waveforms, and attenuate electrical noise and harmonics associated with the inverter and driver output of wind powered turbines; and unit substations, which are integrated assemblies comprising high voltage switchgear, a transformer, a low voltage switchgear, a power meter, and a power factor compensat ion device interconnected with cables or buss bars. The company?s unit substations function as miniature power distribution stations and are used in applications related to the construction and maintenance of city power networks. Jinpan International sells its products in the People?s Republic of China, the United States, and Europe. The company was founded in 1993 and is headquartered in Haikou, the People's Republic of China.
Advisors' Opinion:- [By CRWE]
Jinpan International Ltd (Nasdaq:JST), a leading designer, manufacturer, and distributor of cast resin dry type transformers, recently reported that its subsidiary Hainan Jinpan Electric Co. Ltd. successfully developed a 40,000KVA / 35KV cast resin dry type power transformer. The Company has shipped the transformer to the customer’s site in China’s Anhui province for installation in a transformer substation that will deliver power to gas liquification systems.
Best Penny Companies To Invest In 2014: The Hackett Group Inc.(HCKT)
The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in the United States and western Europe. The company offers executive advisory programs, benchmarking, business transformation, and technology consulting services, as well as shared services, offshoring, and outsourcing advice. Its executive advisory programs consists of advisor inquiry, an inquiry service used by clients for access to fact-based advice on proven approaches and methods to increase the effectiveness of selling, general, and administrative processes (SG&A); best practice research, a research that provides insights into the proven approaches in use at organizations; peer interaction program comprising member-led Webcasts, annual Best Practice Conferences, annual Member Forums, membership performance surveys, and client-submitted content; and best practice intelligence center, an online, searchable repository of practices, performance metrics, conference presentat ions, and associated research. The company?s bench marking services conduct studies in the areas of SG&A, finance, human resources, information technology, procurement, enterprise performance management, shared service centers, and working capital management. These services are used by clients to establish priorities, generate organizational consensus, align compensation to establish performance goals, and develop the required business case for business and technology investments. Its business transformation programs help clients to develop coordinated strategy for achieving performance improvements across the enterprise; and Hackett Technology Solutions help clients choose and deploy the software applications that meet their needs and objectives. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in January 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.
Advisors' Opinion:- [By ValueArtifex]
One such situation currently in the process of unfolding this month is a Dutch Tender by The Hackett Group (HCKT). I will briefly discuss the underlying business, what exactly a Dutch Auction (or in this case, a Tender) is, what options investors have when approaching this situation and how it could play out.
Best Penny Companies To Invest In 2014: Comtech Telecommunications Corp.(CMTL)
Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite pac ket data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.
Advisors' Opinion:- [By Wallace Witkowski]
Shares of Comtech Telecommunications Corp. (CMTL) �rose 6.2% to $33.24 on moderate volume after the company beat Wall Street estimates for the fiscal first quarter and raised its guidance.
- [By Dividends4Life]
Comtech Telecommunications Corp. (CMTL) designs, develops, produces, and markets products, systems, and services for communications solutions. December 9th the company increased its quarterly dividend 9.1% to $0.30 per share. The dividend is payable February 19, 2014, to stockholders of record on January 17, 2014. The yield based on the new payout is 3.6%.
- [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 Comtech Telecommunications (Nasdaq: CMTL ) , whose recent revenue and earnings are plotted below.
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