LONDON -- The FTSE 100 has risen by 25% over the last year, and many top shares are beginning to look quite expensive. I'm on the hunt for companies that still look cheap, based on their long-term earnings potential. To help me hunt down these bargains, I'm using a special version of the price-to-earnings ratio called the PE10, which is one of my favorite tools for value investing.
The PE10 compares the current share price with average earnings per share for the last 10 years. This lets you see whether a company looks cheap compared to its long-term earnings.
Today, I'm going to take a look at the PE10 of the U.K.'s fourth-largest supermarket chain, Wm. Morrison Supermarkets (LSE: MRW ) (NASDAQOTH: MRWSY ) .
Is Morrison a buy?
Morrison's belated launch of an online service, in partnership with Ocado, has hit the headlines in recent weeks. However, the firm's market share keeps slipping: It dropped to 11.6% during the 12 weeks to June 9, according to retail experts Kantar Worldpanel.
Top 10 Solar Stocks To Watch For 2015: Ballard Power Systems Inc.(BLDP)
Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of fuel cell products for motive and stationary power applications worldwide. It offers clean energy PEM (proton exchange membrane) fuel cell stacks, modules, and complete systems. The company provides fuel cell products and services for material handling and bus, back-up power, and distributed generation applications; and fuel cell engineering solutions for various fuel cell applications. It also offers carbon-based engineered material products in the form of roll goods as woven carbon fiber textile fabrics or carbon fiber papers primarily for automotive transmissions and gas diffusion layers. Ballard Power Systems Inc., through its interests in Dantherm Power A/S develops clean energy backup power through utilization of hydrogen fuel cell technology; and Automotive Fuel Cell Cooperation Corp. develops fuel cell products for the automotive fuel cell market. The company was founde d in 1979 and is headquartered in Burnaby, Canada.
Advisors' Opinion:- [By Ben Levisohn]
Shares of Tesla have gained 0.8% to $232.83 at 12:18 p.m. That’s not bad considering that Plug Power (PLUG) is unchanged at $6.71, Ballard Power Systems (BLDP) has dropped 2.8% to $5.53 and FuelCell Energy (FCEL) has fallen 4.3% to $2.89.
- [By Bryan Murphy]
Had shares of its peers and competitors performed as well, it may not even be worth bringing up. But, Plug Power Inc. (NASDAQ:PLUG) shares have done significantly better than FuelCell Energy Inc. (NASDAQ:FCEL) and Ballard Power Systems Inc. (NASDAQ:BLDP) since the end of March. And, PLUG has performed considerably better than FCEL and BLDP have since mid-August. This is more than "just a little volatility." This is a leader breaking away from the pack after a very long lull. Thing is, there's plenty more room for Plug Power to keep running.
- [By Paul Ausick]
Peers Plug Power Inc. (NASDAQ: PLUG), Ballard Power Systems Inc. (NASDAQ: BLDP), and Hydrogenics Corp. (NASDAQ: HYGS) have also shared in the stock price run-up. Any investor expecting more from FuelCell�� results was, perhaps, being irrationally exuberant.
- [By Ben Levisohn]
Shares of FuelCell Energy have fallen 5,6% to $2.52 at 12:48 p.m., while Ballard Power Systems�(BLDP) has dropped 2.8% to $3.46 and Plug Power�(PLUG) has declined 3.5% to $5.28.
Hot Electric Utility Stocks To Own For 2014: Associated Banc-Corp(ASBC)
Associated Banc-Corp, a bank holding company, offers various banking and financial services to individuals and businesses primarily in Wisconsin, Illinois, and Minnesota. Its Banking segment provides loans and deposit products to businesses, governments, and consumers. Its products and services include checking, savings, money market deposit, and IRA accounts, as well as certificates of deposit and safe deposit boxes; and home equity loans and lines of credit, residential mortgage loans and mortgage refinancing, education loans, and personal and installment loans. This segment?s products and services also include business checking accounts, business loans, real estate financing, construction loans, letters of credit, revolving credit arrangements, business credit cards, equipment and machinery leases, night depository, cash management, international banking, check clearing, safekeeping, and other banking-based services. The company?s Wealth Management segment provides va rious fiduciary, investment management, advisory, and corporate agency services for individuals, corporations, small businesses, charitable trusts, endowments, foundations, and institutional investors. This segment also offers life, property, casualty, and credit and mortgage insurance, as well as fixed annuities and employee group benefits consulting and administration services; investment brokerage, variable annuities, and discount and online brokerage services; and trust/asset/investment management, administration of pension, profit-sharing and other employee benefit plans, personal trusts, and estate planning services. The company offers its products through branch facilities, loan production offices, supermarket branches, a customer service call center, an interstate automated teller machine network, and Internet banking services. As of December 31, 2010, its banking subsidiary had 280 offices in approximately 150 communities. The company was founded in 1964 and is base d in Green Bay, Wisconsin.
Advisors' Opinion:- [By Monica Gerson]
Associated Banc-Corp (NASDAQ: ASBC) shares rose 1.73% to reach a new 52-week high of $18.20 after the company announced a $120 million buyback plan and shelf registration of $500 million.
- [By Marc Bastow]
Green Bay-based bank holding company Associated Banc Corp (ASBC) raised its quarterly dividend 12.5% to 9 cents per share, payable on Dec. 16 to shareholders of record as of Dec. 2.
ASBC Dividend Yield:�2.19%
Hot Electric Utility Stocks To Own For 2014: Watson Pharmaceuticals Inc.(WPI)
Watson Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development, manufacture, marketing, sale, and distribution of generic and brand pharmaceutical products in the United States, western Europe, Canada, Australasia, Asia, South America, and South Africa. The company offers its products for therapeutic categories, such as central nervous system, cardiovascular, hormones and synthetic substitutes, anti-infective agents, and urology. It operates in three segments: Global Generics, Global Brands, and Distribution. The Global Generics segment develops, manufactures, and sells generic pharmaceutical products, as well as distributes generic versions of third parties? brand products. This segment offers various dosage forms, such as oral solids, transdermals, injectables, inhalation products, and transmucosals for indications, including pregnancy prevention, pain management, depression, hypertension, and smoking cessation. The Global Brands segment pr omotes and co-promotes Rapaflo, Gelnique, Trelstar, Androderm, Crinone, ella, INFeD, Generess, sodium ferric gluconate, AndroGel, and Femring branded products; and markets its products through sales professionals. It also sells various non-promoted products. The Distribution segment distributes generic and select brand pharmaceutical products, vaccines, injectables, and over-the-counter medicines to independent pharmacies, alternate care providers, pharmacy chains, and physicians? offices. The company sells its generic and brand pharmaceutical products primarily to drug wholesalers, retailers, and distributors, including national retail drug and food store chains, hospitals, clinics, mail order, government agencies, and managed healthcare providers, such as health maintenance organizations and other institutions. Watson Pharmaceuticals, Inc. was founded in 1983 and is headquartered in Parsippany, New Jersey.
Advisors' Opinion:- [By Louis Navellier]
Actavis Plc is one of the world’s largest generic drugmakers. For the past three decades, this company was known as Watson Pharmaceuticals (WPI), but the company rebranded itself as Actavis in 2013. With a portfolio of over 190 pharmaceutical product families, Actavis has its name on everything from antibiotics to contraceptives to smoking cessation treatments.
Hot Electric Utility Stocks To Own For 2014: Tempur-pedic International Inc (TPX)
Tempur-Pedic International Inc. manufactures, markets, and distributes bedding products in North America and internationally. Its products include pillows, mattresses, and adjustable beds, as well as various cushions and other comfort products. The company sells its mattresses and pillows under the TEMPUR and Tempur-Pedic brand names through furniture and bedding, specialty, and department stores; direct response, Internet, and own stores; chiropractors, medical retailers, hospitals, and other healthcare markets; and third party distributors. Tempur-Pedic International Inc. was founded in 1989 and is based in Lexington, Kentucky.
Advisors' Opinion:- [By Yoshiaki Nohara]
The MSCI Asia Pacific Index dropped 0.7 percent to 141.25 as of 4:16 p.m. in Hong Kong, with nine of the gauge�� 10 industry groups falling. The MSCI Asia Pacific excluding Japan Index declined 1.3 percent, with Japan�� Topix (TPX) index gaining 1 percent.
Hot Electric Utility Stocks To Own For 2014: Visteon Corporation(VC)
Visteon Corporation supplies automotive systems, modules, and components to automotive original equipment manufacturers worldwide. The company offers a range of electronics products, including audio/infotainment systems and components, such as base radio/CD head units, infotainment head units, audiophile systems and amplifiers, rear seat family entertainment systems, digital and satellite radios, HD and DAB broadcast tuners, MACH voice link technology, and connectivity solutions for portable devices; driver information systems comprising instrument clusters and displays to assist driving; and powertrain and feature control modules, including controllers for fuel pumps, transfer cases, tuning valves, and security and voltage regulation systems. It also provides electronic climate controls, such as single zone manual electronic and automatic multiple zone modules, as well as integrated audio and climate control assemblies; and lighting products consisting of headlamps, stop lamps, and fog lamps. In addition, the company offers integrated heating, ventilation, and air conditioning systems, which include evaporators, condensers, heater cores, climate controls, compressors, air handling cases, and fluid transport systems; and components and modules that provide cooling and thermal management for the vehicle?s engine and transmission, as well as for batteries and power electronics on hybrid and electric vehicles. Further, it provides interior products, including cockpit modules, which incorporate structural, electronic, climate control, mechanical, and safety components; door panels/modules and interior trim products; and console modules, which deliver storage options. The company was founded in 2000 and is headquartered in Van Buren Township, Michigan.
Advisors' Opinion:- [By David Sterman]
Auto parts maker Visteon (NYSE: VC) clearly embodies the new thinking about share buybacks. The company announced plans last month to sell its $1.5 billion stake in a joint venture with a Chinese partner. Visteon could have looked to pay down debt or make an acquisition, or simply keep the ($1.2 billion after-tax) proceeds. Instead, almost all of the money will go toward a share buyback that might reduce shares outstanding by 25%.
- [By Seth Jayson]
Visteon (NYSE: VC ) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Visteon beat expectations on revenues and crushed expectations on earnings per share.
Hot Electric Utility Stocks To Own For 2014: Asbury Automotive Group Inc (ABG)
Asbury Automotive Group, Inc. (Asbury), incorporated on February 15, 2002, is an automotive retailers in the United States. As of December 31, 2011, the Company operated 99 franchises (79 dealership locations). It offers a range of automotive products and services, including new and used vehicles; vehicle maintenance; replacement parts and collision repair services; new and used vehicle financing, and aftermarket products, such as insurance, warranty and service contracts. As of December 31, 2011, it offered 30 domestic and foreign brands of new vehicles. Its brand mix is weighted 84% towards luxury and mid-line import brands, with the remaining 16% consisting of domestic brands. As of December 31, 2011, it operated dealerships in 18 metropolitan markets throughout the United States. As of December 31, 2011, its retail network consisted of eight locally-branded dealership groups. As of December 31, 2011, its brand names included Nalley Automotive Group, Courtesy Autogroup, Coggin Automotive Group, Crown Automotive Company, David McDavid Auto Group, North Point Auto Group, Gray-Daniels Auto Family and Plaza Motor Company. During the year ended December 31, 2011, the Company sold its heavy truck business in Atlanta, Georgia, two franchises and one additional ancillary business. On May 2, 2011, the Company sold its luxury brand dealership in California. In December 2012, the Company acquired a Volkswagen and a Bentley store in the Atlanta, Georgia market.
New Vehicle Sales
As of December 31, 2011, the Company owned a range of 30 American, European and Asian brands. Its new vehicle unit sales consist of the sale of new vehicles to individual retail customers (new vehicle retail) and the sale of new vehicles to commercial customers (fleet). During the year ended December 31, 2011, it sold 71,449 new vehicles through its dealerships. During 2011, new vehicle sales were 54% of its total revenues and 22% of its total gross profit. The Company�� new vehicle revenues include new vehi! cle sale and lease transactions arranged by its dealerships with third parties.
Used Vehicle Sales
The Company sells used vehicles at all of its dealership locations. Used vehicle sales include the sale of used vehicles to individual retail customers (used retail) and the sale of used vehicles to other dealers at auction (wholesale). During 2011, it sold 55,805 used retail vehicles through its dealerships. During 2011, sales of used retail vehicles accounted for approximately 25% of its total revenues. During 2011, wholesale sales represented 4% of its total revenues.
The Company�� new vehicle operations provide its used vehicle operations with a supply of trade-ins and off-lease vehicles. It also purchases a portion of its used vehicle inventory at auctions restricted to new vehicle dealers and open auctions, which offer vehicles sold by other dealers and repossessed vehicles. Its used vehicle inventory is sold as wholesale if a vehicle is not sold at retail within 60 days, except for used vehicles, which does not fit within its inventory mix. The reconditioning of used vehicles also generates revenue for its parts and service departments.
Parts and Service
Asbury sells replacement parts and provides vehicle maintenance and collision repair service at all of its franchised dealerships, for the vehicle brands sold at those dealerships. As of December 31, 2011, in addition, it maintained 25 free-standing collision repair centers either on the premises of, or in close proximity to, its dealerships. During 2011, parts and service revenues accounted for approximately 14% of its total revenues.
Finance and Insurance
The Company refers to the finance and insurance portion of its business as F&I. Through its F&I business, it arranges, and receives commissions for, third-party financing of the sale or lease of new and used vehicles to customers, as well as offers a range of aftermarket products, such as extended servi! ce contra! cts, guaranteed asset protection (GAP) debt cancellation, pre-paid maintenance and credit life and disability insurance. It also generates F&I revenues from the receipt of marketing fees paid to it under agreements with preferred lenders. During 2011, its F&I business generated approximately 3% of its total revenues. Extended service contracts cover repair work after the expiration of the manufacturer warranty. GAP debt cancellation covers the customer after a total loss for the difference between the value of the vehicle and the outstanding loan or lease obligation after insurance proceeds. Prepaid maintenance covers routine maintenance work, such as oil changes, cleaning and adjusting of brakes, multi-point vehicle inspections and tire rotations. Credit life and disability covers the remaining amounts due on an auto loan or a lease in the event of death or disability.
The Company earns sales-based commissions from third-party lenders, including manufacturer captive finance subsidiaries which arranges on behalf of its customers. It may be charged back (chargebacks) for these commissions in the event a finance contract is cancelled or repaid, typically within the first 90 days of such contract. During 2011, it arranged customer financing on approximately 70% of the vehicles it sold. The Company is a party to a range of preferred lender agreements. These payments are determined by the lenders based upon an agreed-upon earnings schedule.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of Asbury Automotive Group (NYSE: ABG ) were revving up today, gaining as much as 15% after posting a strong earnings report.
- [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 Asbury Automotive Group (NYSE: ABG ) , whose recent revenue and earnings are plotted below.
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