Sometimes, obvious is best: go with a "recession-proof" player.
Are you worried about slowing economic growth, or worse, looming on the horizon? If so, it might be good to play with a company that managed to show EPS growth during both of America�� most recent official recessionary periods, in 2001 and 2008 to 2009.
What company managed to grow earnings even when the economy was tanking? It was the much-despised low price champion, Wal-Mart (WMT).
When recession struck in 2001 its EPS grew from $1.40 to $1.50. The more recent "Great Recession" barely slowed this juggernaut. EPS ticked up 7% to $3.66 in the year ended January 2009, then kept right on going, registering $4.07 the next year while the country hunkered down.
There has been no letup since. Wal-Mart�� board was smart enough to massively increase their share buyback activity during 2010 to 2013 while the stock was trading at only 11 to 13 times earnings.
Hot Freight Stocks To Invest In Right Now: CapitalSource Inc (CSE)
CapitalSource Inc., through its subsidiaries, provides financial products to small and middle market businesses in the United States. It offers depository products and services, such as savings and money market accounts, individual retirement account products, and certificates of deposit. The company also provides senior secured real estate and asset-based loans, and cash flow loans, which have a first priority lien in the collateral securing the loan. Its asset-based loans are collateralized by specified assets of the client, primarily the client�s accounts/notes receivable, inventory, and machinery; and real estate loans are secured by senior mortgages on real property. The company focuses on providing equipment loans and leases; loans to healthcare providers; commercial real estate and multifamily real estate loans; loans secured by timeshare, auto, and other consumer receivables; student loans; traditional life insurance premium finance loans; and loans to technology companies, small businesses, dentists, physicians, pharmacists, and optometrists, as well as to companies in the physical security, government security, and public safety sectors. It operates through 21 retail bank branches in southern and central California, as well as lending offices in the United States. The company was founded in 2000 and is headquartered in Los Angeles, California.
Advisors' Opinion:- [By Eric Volkman]
CapitalSource (NYSE: CSE ) and PacWest Bancorp (NASDAQ: PACW ) are soon to be one and the same. The two companies have agreed to merge, both announced in a joint press release. CapitalSource investors will receive a cash payout of $2.47 and 0.2837 shares of PacWest common stock for each CapitalSource share they hold. This values the latter's stock at $11.68 per share, a nearly 19% premium to its most recent closing price. The total transaction value is estimated at roughly $2.3 billion.
- [By Nicole Seghetti]
Let's take a closer look at three stocks Fisher recently bought, including drugmaker Gilead Sciences (NASDAQ: GILD ) , materials manufacturer Owens Corning (NYSE: OC ) , and financial services provider CapitalSource (NYSE: CSE ) .
- [By Paul Ausick]
PacWest Bancorp (NASDAQ: PACW) is a small cap regional bank that mainly serves southern California. A likely merger with CapitalSource Inc. (NYSE: CSE) enhances the outlook for the coming year, bringing the bank�� assets to more than $10 billion. The bank�� stock closed at $41.66 on Friday in a 52-week range of $24.27 to $42.69. Sterne Agee projects 2014 EPS of $2.80, up 43% compared with estimated 2013 earnings. The implied gain to the target price of $48.00 is about 15% and the forward P/E ratio is 14.9.
- [By Brian Pacampara]
What: Shares of CapitalSource (NYSE: CSE ) soared 20% today after bank holding company PacWest Bancorp (NASDAQ: PACW ) agreed to acquire the financial services specialist in a deal valued at about $2.3 billion.
Top 10 Low Price Companies To Invest In 2014: EMCORE Corporation(EMKR)
EMCORE Corporation, together with its subsidiaries, provides compound semiconductor-based products for the broadband, fiber optics, satellite, and solar power markets. The company operates in two segments, Fiber Optics and Photovoltaics. The Fiber Optics segment offers broadband products, including cable television, fiber-to-the-premises, satellite communication, video transport, and defense and homeland security products; and digital products comprising telecom optical, enterprise, laser/photodetector component, parallel optical transceiver and cable, and fiber channel transceiver products. This segment?s products enable information that is encoded on light signals to be transmitted, routed, and received in communication systems and networks. The Photovoltaics segment provides gallium arsenide (GaAs) multi-junction solar cells, covered interconnected cells, and solar panels for satellite applications; and concentrating photovoltaic (CPV) power systems for commercial and utility scale solar applications, as well as GaAs solar cells and integrated CPV components for use in other solar power concentrator systems. The company markets its products through its direct sales force, external sales representatives and distributors, and application engineers worldwide. EMCORE Corporation was founded in 1984 and is headquartered in Albuquerque, New Mexico.
Advisors' Opinion:- [By CRWE]
EMCORE Corporation (Nasdaq:EMKR), a leading provider of compound semiconductor-based components and subsystems for the fiber optic and solar power markets, reported that it is ramping production and shipping the Opticomm-EMCORE NEXTGEN OTP-1DVI2A1SU insert cards for the Optiva platform.
- [By Roberto Pedone]
EMCORE (EMKR), together with its subsidiaries, provides compound semiconductor-based products for the broadband, fiber optics, satellite, and solar power markets. This stock closed up 1% to $4.09 in Tuesday's trading session.
Tuesday's Range: $4.00-$4.14
52-Week Range: $3.50-$5.62
Tuesday's Volume: 187,000
Three-Month Average Volume: 103,744From a technical perspective, EMKR trended modestly higher here back above its 50-day moving average of $4.03 with above-average volume. This stock has been making higher lows over the last three months each time it has pulled back, which is a bullish technical sign. This spike to the upside on Tuesday is starting to push shares of EMKR within range of triggering a big breakout trade. That trade will hit if EMRK manages to take out some key near-term overhead resistance levels at $4.16 to $4.20 and then above $4.22 with high volume.
Traders should now look for long-biased trades in EMKR as long as it's trending above some key near-term support levels at $3.90 to $3.86 or above more support at $3.78 and then once it sustains a move or close above those breakout levels with volume that hits near or above 103,744 shares. If that breakout gets underway soon, then EMKR will set up to re-test or possibly take out its next major overhead resistance levels at $4.53 to its 200-day moving average of $4.65, or even $5 to $5.30.
Top 10 Low Price Companies To Invest In 2014: TRW Automotive Holdings Corporation(TRW)
TRW Automotive Holdings Corp., together with its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components for automotive original equipment manufacturers and related after-markets. It operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics, and Automotive Components. The Chassis Systems segment offers product lines relating to steering gears and systems, foundation brakes, modules, brake controls, and linkage and suspension. The Occupant Safety Systems segment provides airbags, seat belts, steering wheels, and occupant restraint systems. The Electronics segment offers various products comprising safety electronics, radio frequency electronics, chassis electronics, powertrain electronics, and driver assist systems. The Automotive Components provides body controls, engine valves, and engineered fasteners and components. The company offers its products for passenger cars, light trucks, and commercial vehicles worldwid e. TRW Automotive Holdings Corp. was founded in 1904 and is based in Livonia, Michigan.
Advisors' Opinion:- [By guruek]
TRW Automotive Holdings Corp (TRW): Director Neil P. Simpkins Sold 10,273,062 Shares
Director of TRW Automotive Holdings Corp (TRW) Neil P. Simpkins sold 10,273,062 shares on 08/05/2013 at an average price of $71.34. - [By Ben Levisohn]
Cooper Tire & Rubber (CTB) has gained 1% to $24.86 today, but its trading more on whether investors expect its acquisition by Apollo Tyres to be completed. Car-part companies, however, are also exhibiting weakness today. TRW Automotive (TRW) has fallen 0.8% to $77.91, Lear (LEA) has dipped 0.4% to $74.78 and American Axel and Manufacturing (AXL) is off 0.5% to $18.99.
- [By Vera Yuan]
On the morning of September 15, TRW Automotive Holdings (TRW) announced it was going to be acquired by ZF Friedrichshafen for $105.60 per share. This was of more than a passing interest to us because at the time TRW was the largest holding in Oakmark Select. It was also the culmination of a process we applauded because TRW stock began 2012 at $33 per share, and was only up to $74 at the end of 2013. Over the years, takeovers have contributed significantly to Oakmark and Oakmark Select�� returns. In 2014 both Funds benefited when AT&T offered to buy DirecTV and when Actavis purchased Forest Laboratories. Additionally, Oakmark Fund owned Covidien, which increased from $72 to $92 after announcing its merger with Medtronic. Obviously, we welcome takeover activity in any of our holdings.But when TRW announced news of the acquisition at 8:16 a.m. Chicago time, it took less than an hour ��9:04 to be exact ��for the first law firm to announce its threat to sue TRW for accepting too low a price. Within 10 days I had counted at least 27 similar press releases from various law firms purporting to represent shareholders, threatening legal action to block the takeover. How do you square the law firms all jumping in to protect the shareholders while as a large shareholder ourselves, we were cheering the news?Merger objection lawsuits aren�� unique to the TRW deal. In fact, each of the takeovers we were invested in had multiple law firms trying to block the deals, alleging that shareholders weren�� getting paid a high enough price. And it isn�� just those takeovers. Within minutes of almost any takeover announcement, many law firms race to file press releases. Ten years ago, less than 10% of announced acquisitions of public companies were followed by merger objection suits. Today, almost every deal produces multiple suits. The overwhelming majority of these suits result in zero benefit to the shareholders, but almost all result in payments to law firms. Effecti
Top 10 Low Price Companies To Invest In 2014: Metals USA Holdings Corp. (MUSA)
Metals USA Holdings Corp., through its subsidiaries, provides carbon steel, stainless steel, aluminum and specialty metals, and manufactured metal components in the United States and Canada. It operates in three segments: Plates and Shapes, Flat Rolled and Non-Ferrous, and Building Products. The Plates and Shapes segment processes and sells steel plates and structural beams, bars, angles, and tubes. This segment provides processing services, such as cutting, cambering/leveling, punching, bending, shearing, cut-to-length, blast and paint, and tee-splitting. It serves customers in the the electrical and appliance manufacturing, fabrication, furniture, commercial construction, machinery and equipment, land and marine transportation, energy, and aerospace industries. The Flat Rolled and Non-Ferrous segment processes and sells flat rolled carbon and stainless steel, aluminum, brass, and copper in various alloy grades. This segment offers processing services, such as slitting, p recision blanking, leveling, cut-to-length, punching, and shearing. It serves customers in the electrical and appliance manufacturing, fabrication, furniture, machinery and equipment, transportation, and aerospace industries. The Building Products segment produces and distributes aluminum and steel building products consisting of covered canopies and walkways, awnings, sunrooms, solariums, and other products primarily for the commercial and residential building products industries. The company is headquartered in Fort Lauderdale, Florida.
Advisors' Opinion:- [By David Tristan Liu]
Murphy USA (MUSA) first caught my attention after Southeastern Asset Management acquired a massive stake ($668mm) in its former parent company Murphy Oil Corporation (MUR) in Q1 2013. One thing about Murphy Oil Corporation I noticed after an initial glance through their 10-K and annual report was its ownership of a valuable fuel and convenience retailer segment with high ROIC, valuable real estate, low CAPEX requirements, and relatively decent growth prospects that was under-followed and whose underlying value was concealed by the parent company's core production and exploration business.
Top 10 Low Price Companies To Invest In 2014: Perry Ellis International Inc.(PERY)
Perry Ellis International, Inc. engages in designing, sourcing, marketing, and licensing apparel products for men and women in the United States and internationally. The company?s men?s wear offerings include casual sportswear and bottoms, dress shirts and pants, jeans wear, golf apparel, sweaters, sports apparel, swimwear and swim accessories, active wear, outerwear and leather accessories. Its women?s wear offerings comprise dresses, sportswear, and swimwear and swim accessories. The company offers its products under the brand names of Perry Ellis, Axis, Tricots St. Raphael, Jantzen, John Henry, Cubavera, the Havanera Co., Centro, Solero, Natural Issue, Munsingwear, Grand Slam, Original Penguin, Mondo di Marco, Redsand, Pro Player, Manhattan, Axist, Savane, Farah, Gotcha, Girl Star, MCD, Laundry by Shelli Segal, C&C California, Ben Hogan, and Rafaella. It also licenses the Nike brand for swimwear and swimwear accessories; the JAG brand for men?s and women?s swimwear and cover-ups; the Callaway Golf brand and Top-Flite for golf apparel; the PGA TOUR brand, including Champions Tour for golf apparel; and Pierre Cardin for men?s sportswear. The company distributes its products primarily to wholesale customers, including department stores, national and regional chain stores, mass merchants, specialty stores, sporting goods stores, the corporate wear market, and e-commerce, as well as clubs and independent retailers. As of March 2, 2011, it operated 38 Perry Ellis and 3 Original Penguin retail outlet stores primarily in upscale retail outlet malls across the United States and Puerto Rico; 1 Perry Ellis and 1 Cubavera retail store in Miami, Florida; and 7 Original Penguin retail stores in upscale demographic markets in the United States. The company was formerly known as Supreme International Corporation and changed its name to Perry Ellis International, Inc. in June 1999. Perry Ellis International, Inc. was founded in 1967 and is headquarte red in Miami, Florida.
Advisors' Opinion:- [By Adem Tahiri]
Perry Ellis International (NASDAQ: PERY ) is an apparel company that designs, markets, and licenses its brand-name products. The stock has dropped by nearly half this year, and it has sparked the interest of many value investors. Last Thursday, fourth-quarter earnings results beat lowered expectations and gave the stock a small bump.�
Top 10 Low Price Companies To Invest In 2014: Commonwealth Bank of Australia (CBA)
Commonwealth Bank of Australia (the Bank) is engaged in the provision of a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Bank is a provider of integrated financial services, including retail, business and institutional banking, superannuation, life insurance, general insurance, funds management, broking services and finance company activities. Its operating segments include Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, Wealth Management, New Zealand, Bankwest and Other. Its retail banking services include home loans, consumer finance, retail deposits and distribution. Its business and private banking include corporate financial services, regional and agribusiness banking, local business banking, private bank and equities and margin lending. The Bank and its subsidiaries ceased to be a substantial holder in Ten Network Holdings Limited, as of September 12, 2012. Advisors' Opinion:- [By Jan Schalkwijk]
M-Pesa, the system that revolutionized mobile payments in Kenya and beyond, is not capital intensive for Safaricom, but the company has to pay 10% of revenues to Vodafone, which runs the system's technology backbone. Safaricom is planning to take this job on itself going forward, which should increase profitability, though there would be some operational risk if they can't deliver the same level of service. M-Pesa has now spawned M-Shwari, which is the same concept but adds mobile banking services such as the provision of credit. This new service is delivered in partnership with the unlisted Commercial Bank of Africa (CBA).
- [By Toshiro Hasegawa]
Commonwealth Bank of Australia (CBA) fell 1.1 percent to A$73.73. Singapore Telecommunications Ltd. (ST) retreated 1.1 percent to S$3.78 today after posting earnings.
Top 10 Low Price Companies To Invest In 2014: Want Want China Holdings Ltd (WWNTF)
Want Want China Holdings Limited is an investment holding company. The principal activities of the Company and its subsidiaries are the manufacturing, distribution and sale of rice crackers, dairy products and beverages, snack foods and other products. The Company segments include manufacturing and sale of Rice crackers, including sugar coated crackers, savoury crackers and fried crackers; dairy products and beverages, including flavored milk, yogurt drinks, ready-to-drink coffee, juice drinks, carbonated drinks, herbal tea and milk powder; snack foods, including candies, popsicles and jellies, ball cakes and beans and nuts, and other products, mainly including wine and other food products. Its operations are located in the People�� Republic of China, with the rest located in Taiwan, Hong Kong, Singapore and Japan. As of December 31, 2011, its subsidiaries included Want Want Holdings Ltd., Long Wave Foods Limited, Want-Want Foods Limited and others. Advisors' Opinion:- [By WWW.MARKETWATCH.COM]
HONG KONG (MarketWatch) -- Hong Kong stocks swung between small gains and losses early Thursday after hitting a seven-month high in the previous session, with the Hang Seng Index (HK:HSI) down less than 0.1%. Most mainland Chinese property developers outperformed the markets, with Guangzhou R&F Properties Co. (HK:2777) (GZUHF) rallying 3.4%, after the company reported a 44% month-on-month jump in sales for June. Shimao Property Holdings Ltd. (HK:0813) (SIOPF) climbed 2.6%, and China Resources Land Ltd. (HK:1109) (CRBJF) rose 1.7%. However, several retailers were weak, as Want Want China Holdings Ltd. (HK:0151) (WWNTF) , the country's top food and beverage maker, declined 2%. Hong Kong-based cosmetics brand Sa Sa International Holdings (HK:0178) (SAXJF) fell 1.6%, with a decline in Chinese June non-manufacturing data helping weigh on some retailers. Over on the Chinese mainland, the Shanghai Composite Index (CN:SHCOMP) retreated 0.4%, pulling back from its highest close in two weeks.
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