Sunday, June 29, 2014

Top 5 Prefered Stocks To Own For 2014

With shares of eBay Inc. (NASDAQ:EBAY) trading at around $55.33, is EBAY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock�� Movement

EBay has a strong history of beating expectations, but that�� not what makes it special. Analysts love the stock: 30 Buy, 9 Hold, 0 Sell, but that�� not what makes it special, either. What makes it special is PayPal.

It�� amazing when you stop and think about. Think of all the acquisitions throughout the broader market over the years. What percentage of those acquisitions ended up working out? It�� likely a small percentage — and definitely well under 50 percent. There were many questions when eBay acquired PayPal, but there aren�� many questions now. PayPal�� potential is phenomenal. Consider that PayPal was responsible for 15 percent of all e-commerce transactions in 2012. Online spending is only going to increase as the years pass. Therefore, PayPal is extremely well-positioned. And this potential is global, not just domestic. eBay is looking to market PayPal globally through mobile. It�� especially going after Brazil, Russia, India, and China. It should also be noted that eBay is taking a slow and steady approach with PayPal opposed to getting ahead of itself. This is a good sign.

Top 5 Clean Energy Companies To Invest In Right Now: Accenture plc. (ACN)

Accenture plc provides management consulting, technology, and business process outsourcing services worldwide. It offers various management consulting services in the areas of finance and enterprise performance, operations, risk management, sales and customer service, strategy, sustainability, and talent and organization management, as well as provides industry-specific management consulting services. The company also offers system integration consulting services and solutions, including enterprise solutions and enterprise resource planning, industry and functional solutions, information management services, custom solutions, and Microsoft solutions; and technology consulting services and solutions comprising information technology (IT) strategy, infrastructure consulting, IT security consulting, and application modernization and optimization. In addition, it provides technology outsourcing services, which include application outsourcing services; infrastructure outsourcin g services in service desk, workplace, data-center, network, security, and IT spend management service areas; cloud computing services; and mobility and embedded software services. Further, the company provides business process outsourcing (BPO) services for business functions and/or processes, including finance and accounting, human resources, learning and procurement, and others, as well as industry-specific BPO services, such as credit services. It serves communications, electronics and high technology, media and entertainment, banking, capital markets, insurance, health, public service, airlines, freight and logistics, automotive, consumer goods and service, industrial equipment, infrastructure and transportation service, life sciences, retail, chemical, energy, natural resources, and utility industries. Accenture plc has a strategic collaboration with Marriott International, Inc. The company was founded in 1995 and is based in Dublin, Ireland.

Advisors' Opinion:
  • [By John Maxfield]

    Alternatively, the worst performing stock on the blue-chip index at the time of writing is IBM (NYSE: IBM  ) , down 2.6% in mid-afternoon trading. As my colleague Dan Dzombak pointed out, the impetus here stemmed from worse-than-expected quarterly results from its competitor Accenture (NYSE: ACN  ) . For its fiscal third quarter, Accenture marginally beat expectations on the bottom line with earnings per share of $1.14, but missed on the top line with revenue of $7.2 billion. The concern for IBM is that it will have a similar experience in terms of sales and thereby miss analyst estimates for its own upcoming quarter.

  • [By Jeff Reeves]

    To be clear, it�� not just IBM swimming upstream right now. Enterprise spending has been tough for everyone from Accenture (ACN) to Oracle (ORCL), and the current government shutdown and looming debt ceiling debacle aren�� making businesses any more eager to spend big in Q4.

  • [By Evan Niu, CFA]

    What: Shares of Accenture (NYSE: ACN  ) have plunged today by as much as 14% after the company reported fiscal third quarter earnings.

    So what: Revenue in the quarter totaled $7.2 billion, with earnings per share of $1.14. Sales were short of the $7.4 billion consensus estimate, although Accenture beat the bottom-line forecast of $1.13 per share. The company said consulting revenues were below internal expectations.

  • [By Dividend Growth Investor]

    Accenture plc (ACN) provides management consulting, technology, and business process outsourcing services worldwide. The company raised its semi-annual dividend by 15% to 93 cents/share. This marked the ninth consecutive annual dividend increase for Accenture. Over the past five years, Accenture has managed to increase dividends at a rate of 28.70%/year. The company is projected to earn $4.47/share in 2014 and $4.94 by 2014.

Top 5 Prefered Stocks To Own For 2014: BRE Properties Inc (BRE)

BRE Properties, Inc. (BRE), incorporated in 1970, is a self-administered equity real estate investment trust (REIT) focused on the development, acquisition and management of multifamily apartment communities primarily located in the metropolitan markets within the State of California, and the Seattle, Washington region. BRE also owns and operates communities in the Phoenix, Arizona and in the Denver, Colorado metropolitan markets. As of December 31, 2011, its multifamily portfolio had real estate assets, which included 76 wholly or majority owned stabilized multifamily communities, aggregating 21,336 units in California, Washington and Arizona; 11 stabilized multifamily communities owned through joint ventures comprised of 3,592 apartment units; and seven apartment communities in various stages of construction and development. In October 2013, the Company acquired Jefferson at Hollywood.

During the year ended December 31, 2011, BRE acquired three communities totaling 652 units: Lafayette Highlands, with 150 units, located in Lafayette, California; The Landing at Jack London Square, with 282 units, located in Oakland, California, and The Vistas of West Hills, with 220 units, located in Valencia, California. In addition to the communities, the Company acquired two parcels of land for future development in San Francisco, California�� Mission Bay district, and it purchased a 4.4 acre site contiguous to its existing Park Viridian operating community and its existing second phase land site in Anaheim, California. As of December 31, 2011, BRE had seven sites under development or construction.

During 2011, the Company sold two communities totaling 634 units: Galleria at Towngate, with 268 units located in Moreno Valley, California; and Windrush Village, a 366 unit property located in Colton, California. The two properties sold were located in the eastern half of the Inland Empire. In addition, during 2011, two joint venture assets were sold; The Landing at Bear Creek, a 224 unit j! oint venture community, located in Lakewood, Colorado; and The Pinnacle at Hunters Glen, a 264 unit joint venture community located in Thornton, Colorado.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    BRE Properties (NYSE: BRE) was also up, gaining 11.79 percent to $59.66 after Bloomberg reported that the company is working with Wells Fargo on a possible sale.

Top 5 Prefered Stocks To Own For 2014: Tesoro Logistics LP(TLLP)

Tesoro Logistics LP engages in the ownership, operation, development, and acquisition of crude oil and refined products logistics assets in the United States. The company is involved in the gathering, terminalling, transportation, and storage of crude oil and refined products. Its assets consist of a crude oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana; eight refined products terminals in the midwestern and western United States; a crude oil and refined products storage facility; and five related short-haul pipelines. The company was founded in 2010 and is based in San Antonio, Texas. Tesoro Logistics LP is a subsidiary of Tesoro Corporation.

Advisors' Opinion:
  • [By Robert Rapier]

    RRMS didn’t see the same kind of price surge in 2013 as ACMP, so offers a more generous  annualized yield of 5.2 percent. RRMS also has a lower total debt/equity (mrq), at 22 percent versus ACMP’s 71 percent. For Q3 2013, RRMS reported $15.4 million in adjusted EBITDA, a year-over-year increase of 65 percent. In comparison, adjusted EBITDA for the 2013 third quarter totaled $227 million for ACMP, an increase of 90 percent year-over-year.

    Tesoro Logistics (NYSE: TLLP) was spun off by the refiner Tesoro (NYSE: TSO) in 2011 to operate pipelines leading to and from its plants. TLLP’s assets consist of a crude oil gathering system in the Williston Basin area of North Dakota and Montana, 17 refined product and storage terminals, three dedicated storage facilities, four California marine terminals, a rail unloading facility, and a petroleum coke handling facility.

    Distributions have  grown steadily since the IPO, from $1.35 per unit (annualized) in Q2 2011 to the current annualized level of $2.18/unit. At a current unit price of $53.49, TLLP is well off its 52-week high of $71.92. Distributions have increased each quarter since the IPO, and units currently have a yield of 4.2 percent. But investors should be wary given that TLLP is highly leveraged. Its total debt/equity (mrq) is nearly 400 percent, much higher than most competitors.

    Of the three MLPs — ACMP, RRMS and TLLP — RRMS looks best at the moment with the least downside risk. It is by far the least-leveraged, didn’t have a huge run-up in 2013 that depressed its yield, and it has managed to steadily grow revenues and distributions since its IPO.    

  • [By Lee Jackson]

    Tesoro Logistics L.P. (NYSE: TLLP) is an Oppenheimer favorite, especially after the pullback in the stock price. The company has strong fee-based contracts that increase the likelihood of consistent increases in the distribution. The Oppenheimer price target is posted at $61, while the consensus is at $63. Shareholder are paid a 3.8% distribution.

Top 5 Prefered Stocks To Own For 2014: Sumitomo Mitsui Financial Group Inc(SMFG)

Sumitomo Mitsui Financial Group, Inc., through its subsidiaries, provides various banking and financial products and services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates in four segments: Commercial Banking, Securities, Leasing, and Credit Card. The commercial banking segment offers various financial services, including personal bank accounts, investment trusts, pension-type insurance products, life insurance products, and housing loans to individuals; and lending, cash management, settlement, leasing, factoring, management information systems consulting, collection, and investment banking services to mid-sized companies, and small- and medium-sized enterprises. It also provides various financial services, such as loans, deposits, and settlement services, as well as loan syndication, structured finance, and nonrecourse loans to large corporations and listed companies; international banking services comprising project finance, loan syndic ation, securitization, shipping finance, global cash management services, and yen custody services; and provides services related to foreign exchange, securities, and derivatives. The Securities segment offers various financial products, including stocks, bonds, investment trusts, and variable annuity insurance; investment consultation; and administration services to individual and corporate customers. The Leasing segment offers provides leasing services, such as leasing of information and communication equipment, industrial equipment, and construction equipment, as well as aircraft leasing. The Credit Card segment provides various credit cards; and settlement and financing services primarily related to credit card transactions. Sumitomo Mitsui Financial Group, Inc. is headquartered in Tokyo, Japan.

Advisors' Opinion:

    LOS ANGELES (MarketWatch) -- Japanese stocks slipped early Monday, with the Nikkei Stock Average (JP:NIK) down 0.1% at 14,298.17, and the Topix dropping 0.4%. Singapore-traded lead futures for the Nikkei Average had suggested a 0.8% gain for the index, but the indicator fell after the Cabinet Office reported fourth-quarter economic growth of 0.3%, flat from the previous quarter and below expectations in separate Reuters and Wall Street Journal/Nikkei surveys. The disappointing economic data also pushed the yen higher, weighing on some exporters, with Panasonic Corp. (JP:6752) (PCRFF) down 1.8%, NEC Corp. (JP:6701) (NIPNF) off 1.3%, and Sony Corp. (JP:6758) (SNE) down 0.7% after S&P downgraded the firm's credit rating to BBB- from BBB with a negative outlook. Shares of Internet retailer Rakuten Inc. (JP:4755) (RKUNF) dropped 12% after announcing plans to buy online messaging and telecom firm Viber Media Inc. for $900 million as well as posting below-consensus full-year profit. Banks were broadly lower, with Mizuho Financial Group Inc. (JP:8411) (MFG) off 1% and Sumitomo Mitsui Financial Group Inc. (JP:8316) (SMFG) off 1.1%, though Daiwa Securities Group Inc. (JP:8601)

No comments:

Post a Comment