With shares of Boeing (NYSE:BA) trading around $138, is BA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s MovementBoeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management, and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corp.
Boeing has secured orders for $95 billion worth of its 777X jets, which were debuted at the Dubai Airshow. The record-breaking sum is the largest product launch by dollar value in commercial plane history and represents orders for 259 units from four different airlines. Boeing received orders for the new craft from Emirates, Lufthansa, Qatar Airways, and Etihad Airways. The New York Times reported that the orders show how airlines in the Middle East and Asia are quickly growing and spending money on new aircraft. In addition, Boeing is considering sites outside Washington state for the production of the new craft, as the machinists union in Washington rejected Boeing�� contract offer.
Top 5 Long Term Companies To Buy For 2015: Honeywell International Inc.(HON)
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment provides turbine propulsion engines, auxiliary power units, environmental control and electric power systems, engine systems and accessories, avionic systems, aircraft lighting, inertial sensors, control products, space products and subsystems, and landing products for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations, as well as offers management and technical, logistics, aircraft wheels and brakes and repair, and overhaul services. The company?s Automation and Control Solutions segment provides environmental and combustion controls, and sensing controls; security and life safety products and services; scanning and mobility products; process automation products and solutions; and building solutions and services for homes, buildings, and industrial facilities. Its Specialty Materials segment prov ides resins and chemicals; hydrofluoric acid; fluorocarbons; fluorine specialties; nuclear services; performance chemicals; chemical processing sealants; fibers and composites; specialty films and additives; imaging and electronic chemicals; semiconductor materials and services; catalysts, adsorbents, and specialties; and renewable fuels and chemicals. It offers these products for refining, petrochemical, automotive, healthcare, agricultural, packaging, refrigeration, appliance, housing, semiconductor, wax, and adhesives segments. This segment also provides process technology and equipment for the petroleum refining, and petrochemical and gas processing industries. The company?s Transportation Systems segment provides charge-air systems; thermal systems; filters, spark plugs, electronic components, and car care products; and brake hard parts and other friction materials for passenger cars and commercial vehicles. The company was founded in 1920 and is headquartered in Morris Township, New Jersey.
Advisors' Opinion:- [By Teresa Rivas]
Honeywell (HON) was another of the many names that reported earnings Thursday.
The conglomerate said first-quarter earnings were $1.02 billion, or $1.28 a share, up from $1.21 a share in the year-ago period and two cents better than the $1.26 analysts had forecast.
Revenue climbed 3.8% to $9.68 billion, just below the $9.74 billion consensus.
As for individual divisions, its transportation systems unit saw the biggest sales jump, at 8.6%, followed by automation and control systems, the biggest contributor to the top line, which saw revenue climb 7.6%. The performance materials and technologies arm logged a 2.2% rise in sales, while the aerospace unit slipped $1.8%.
Honeywell also increased the lower end of its full-year earnings outlook by a nickel, saying it now expects to earn between $5.40 and $5.55 a share.
Citigroup�� Deane Dray maintained a Neutral rating on the stock: ��he company reported disappointing 1% organic revenue growth vs. 2%-4% expectations that were reiterated in March due to Aerospace and PMT. On the operating line, the company beat our estimates by $0.04 including better than expected operating margin in all four business segments. Despite some headwinds in PMT, the company was able to post consolidated 16.5% margins, up 30 bps Y/Y. Above-plan profitability allowed Honeywell to spend an extra penny on restructuring and proactive environmental remediation, above its $0.10 gain on its sale of BEAV shares. Cash was strong in the seasonally weak quarter with 49% conversion, allowing the company to increase its full year cash guidance. EPS guidance was increased by 5c at the low-end to $5.40-$5.55 with 3%-4% organic rev growth reaffirmed. Guidance for 2Q14 is $1.32-$1.36 vs our $1.37 estimate and consensus.��/p>
Morningstar�� Daniel Holland was more optimistic, however, and reiterated a Buy rating and $105 fair value on the stock: ��oneywell�� first-quarter performance reflected the benefits of hav
- [By Dan Caplinger]
Boeing (NYSE: BA ) made the biggest news among the gainers today, rising 3.7% in light of revelations that the recent fire aboard a 787 Dreamliner last week wasn't connected to recent improvements the company made to its battery systems. Indeed, Reuters reported this afternoon that investigators were looking at a Honeywell-produced (NYSE: HON ) emergency locator transmitter as a possible source of the fire. For its part, Honeywell fell only slightly on the news, clearly reflecting the fact that the investigation process is only in its beginning stages currently.
- [By Kyle Woodley]
In-flight Internet service provider Gogo Inc. (GOGO) reports earnings in a couple of weeks, but that report has been relegated to the back pages today. That’s because AT&T (T) and Honeywell (HON) just challenged GoGo to a dogfight, and GOGO stock — already mired in big losses prior to today — is reeling hard.
- [By Muhammad Bazil]
Though GE Capital has been a huge source of revenue for the parent company, its earnings aren�� always seen in the light of income from industrial activities leading to how it has been cheaply perceived among its peers. For example, among GE�� peers in the industrial sector like Honeywell International (HON), United Technologies (UTX), Illinois Tool Works (ITW) and Emerson Electric (EMR), only Illinois Tool Works is cheaper than GE, but it is miles apart in growth potential when compared with GE. So, GE stock trades at a huge discount relative to all of its industrial peers except ITW which is rather odd all because of GE Capital. Though GE Capital has been contributing about 30% of GE�� earnings and, hence, a good percentage of its earnings per share (EPS), shedding GE Capital is the only way to make the industrial segments of GE to strive for better growth in the near future to make up for the original earnings growth of GE facilitated by GE Capital.
Top 10 Information Technology Companies To Buy For 2014: WPP plc (WPPGY)
WPP plc provides communications services worldwide. Its Advertising and Media Investment Management segment plans and creates marketing and branding campaigns; and designs and produces advertisements for television, cable, the Internet, radio, magazines, and newspapers, as well as outdoor locations, including billboards. This segment also has media investment management capabilities in the areas of business science, consumer insight, communications and media planning implementation, interactions, content development, and sports and entertainment marketing. The company�s Consumer Insight segment offers custom research services in various sectors, including strategic market studies; brand positioning; equity research; customer satisfaction surveys; product development; international research; advanced modeling; advertising research; pre-testing, tracking, and sales modeling; and trends and futures research and consultancy. Its Public Relations & Public Affairs segment provi des advice to clients that seek to communicate with consumers, governments, and/or the business and financial communities. This segment�s activities include corporate, financial, and marketing communications; crisis management; reputation management; public affairs; and government lobbying. The company�s Branding & Identity, Healthcare, and Specialist Communications segment engages in branding and identity; healthcare communications; and direct, digital, promotional, and relationship marketing activities. This segment also offers specialist communications services, such as custom media and multicultural marketing; event, sports, youth, and entertainment marketing; corporate and business-to-business; and media, technology, and production services, as well as digital and measurable interactive marketing, digital marketing strategy, mobile solutions, and platforms services. The company has a strategic partnership with Twitter, Inc. WPP plc was founded in 1971 and is based in London, the United Kingdom.
Advisors' Opinion:- [By Kevin Godbold]
So this series aims to identify appealing FTSE 100 investment opportunities and today I'm looking at�WPP� (LSE: WPP ) (NASDAQ: WPPGY ) , which provides marketing communications services such as advertising and public relations.
- [By Alan Oscroft]
WPP (LSE: WPP ) (NASDAQ: WPPGY )
WPP shares have gained a modest 0.5% after the advertising giant revealed an acquisition. The firm's wholly owned operating network VML will take a 49% stake in Polish digital agency Heureka Group, with an option to acquire a majority stake at a later date. - [By Alanna Petroff]
2. Earnings expectations: Shares in advertising giant WPP (WPPGY) were higher by roughly 2% in London after the firm reported strong half-year earnings.
Top 10 Information Technology Companies To Buy For 2014: World Acceptance Corp (WRLD)
World Acceptance Corporation operates a small-loan consumer finance business in 12 states and Mexico. The Company is engaged in the small-loan consumer finance business, offering short-term small loans, medium-term larger loans, related credit insurance and ancillary products and services to individuals. As of March 31, 2012, the Company offered standardized installment loans through 1,137 offices in South Carolina, Georgia, Texas, Oklahoma, Louisiana, Tennessee, Illinois, Missouri, New Mexico, Kentucky, Alabama, Wisconsin, and Mexico. The Company serves individuals with limited access to consumer credit from banks, credit unions, other consumer finance businesses and credit card lenders. In the United States offices, the Company also offers income tax return preparation services to its customers and others.
During the fiscal year ended March 31, 2012 (fiscal 2012), the Company opened 69 new offices. In each state in which it operates and in Mexico, the Company offers consumer installment loans, which are standardized by amount and maturity. The Company's loans are consumer installment loans, which are payable in fully amortizing monthly installments with terms generally of 4 to 36 months, and all loans are pre-payable at any time without penalty. During fiscal 2012, the Company's average originated gross loan term was approximately 12 months. As of March 31, 2012, the annual percentage rates on loans offered by the Company, which include interest, fees and other charges as calculated for the purposes of the requirements of the federal Truth in Lending Act, ranged from 24% to 204% depending on the loan size, maturity and the state, in which the loan is made. In addition, in certain states, the Company, as agent for an unaffiliated insurance company, sells credit insurance in connection with its loan transactions.
Specific allowable charges vary by state and, consistent with industry practice, the Company generally charges at or close to the maximum rates allowable under app! licable state law in those states that limit loan rates. Statutes in Texas and Oklahoma allow for indexing the maximum loan amounts to the Consumer Price Index. The Company�� loan products are pre-computed loans in which the finance charge is a combination of origination or acquisition fees, account maintenance fees, monthly account handling fee and other charges permitted by the relevant state laws.
The Company, as an agent for an unaffiliated insurance company, markets and sells credit life, credit accident and health, credit property, and unemployment insurance in connection with its loans in selected states where the sale of such insurance is permitted by law. Credit life insurance provides for the payment in full of the borrower's credit obligation to the lender in the event of death. Credit accident and health insurance provides for repayment of loan installments to the lender, which come due during the insured's period of income interruption resulting from disability from illness or injury. Credit property insurance insures payment of the borrower's credit obligation to the lender in the event, which the personal property pledged as security by the borrower is damaged or destroyed by a covered event. Unemployment insurance provides for repayment of loan installments to the lender, which come due during the insured�� period of involuntary unemployment. The Company requires each customer to obtain specific credit insurance in the amount of the loan for all loans originated in Georgia under the Georgia Industrial Loan Act, and encourages customers to obtain credit insurance for all loans originated in South Carolina, Louisiana, Alabama and Kentucky and on a limited basis in Tennessee, Oklahoma, and Texas. Customers in those states obtain such credit insurance through the Company.
In South Carolina, Georgia, Louisiana, Kentucky and Alabama, the Company charges its borrowers for its non-file premiums in connection with certain loans in lieu of recording and perfecting the! Company� �s security interest in the loan collateral. The premiums are remitted to a third party insurance company for non-file insurance coverage. The Company also markets automobile club memberships to its borrowers in Georgia, Tennessee, New Mexico, Louisiana, Alabama, Texas, and Kentucky as an agent for an unaffiliated automobile club. Club memberships entitle members to automobile breakdown and towing reimbursement and related services. The Company is paid a commission on each membership sold.
The Company offers income tax return preparation and electronic filing. This program is provided in all but a few of the Company�� the United States offices. During fiscal 2012, the Company prepared 44,000 returns. During fiscal 2012, 93.4% of the Company�� revenues were attributable to the United States customers and 6.6% were attributable to customers in Mexico. During fiscal 2012, approximately 84.7% of the Company's loans were generated through refinancings of outstanding loans and the origination of new loans to previous customers.
Advisors' Opinion:- [By Ong Kang Wei]
Besides this, I would also avoid companies which had previously fooled investors by using things such as "creative accounting" or "aggressive accounting" (Remember Enron); had been involved in a scandal which required it to restate past financials or go to court with shareholders (Remember the Diamond Foods (DMND) scam); was unable to produce financial statements on time [One recent case being World Acceptance (WRLD)]; or was being investigated by the SEC. These are all some signs of management being dishonest, and I would rather avoid companies with such a history, unless there is a change in the company's management team.
- [By Roberto Pedone]
One credit services player that insiders are jumping into big here is World Acceptance (WRLD), which is engaged in small-loan consumer finance business in the U.S. and Mexico. Insiders are buying this stock into notable weakness, since shares have dropped lower by 14.8% so far in 2014.
World Acceptance has a market cap of $734 million and an enterprise value of $1.2 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 7.5 and a forward price-to-earnings of 6.4. Its estimated growth rate for this year is 16.1%, and for next year it's pegged at 9.5%. This is not a cash-rich company, since the total cash position on its balance sheet is $14.63 million and its total debt is $559.70 million.
A director just bought 129,580 shares, or about $9.27 million worth of stock, at $71.44 to $72.08 per share.
From a technical perspective, WRLD is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong over the last few weeks, with shares moving higher from its low of $63.25 to its recent high of $75.20 a share. During that uptrend, shares of WRLD have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WRLD within range of triggering a near-term breakout trade.
If you're bullish on WRLD, then I would look for long-biased trades as long as this stock is trending above its 50-day moving average of $70.85 a share and then once it breaks out above some near-term overhead resistance at $75.20 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average volume of 169,386 shares. If that breakout materializes soon, then WRLD will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $79.54 to $84 a share.
Mu - [By Geoff Gannon]
1. World Acceptance (WRLD)
2. Express Scripts (ESRX)
3. Walgreen (WAG)
4. Humana (HUM)
5. McDonald's (MCD)Those are the kinds of companies a younger ��and poorer ��Warren Buffett might buy. Actually, a few of those companies are big enough for Warren Buffett to buy today.
Top 10 Information Technology Companies To Buy For 2014: Stone Energy Corporation(SGY)
Stone Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and operation of oil and gas properties in the Gulf of Mexico and the Appalachia region. As of December 31, 2010, it had estimated proved oil and natural gas reserves of approximately 473.9 billion cubic feet of gas equivalent. The company was founded in 1993 and is headquartered in Lafayette, Louisiana with additional offices in New Orleans, Louisiana; Houston, Texas; and Morgantown, West Virginia.
Advisors' Opinion:- [By John Udovich]
While the Bakken formation is already on most investor radars,�few American investors may realize that the formation stretches North into the oil and gas rich Canadian province of Saskatchewan where�stocks like Surge Energy Inc (TSE: SGY), Questerre Energy Corp (TSE: QEC), Crescent Point Energy Corp (TSE: CPG), Keyera Corp (TSE: KEY) and Centor Energy Inc (OTCBB: CNTO) have been pumping out a good flow of newsworthy news in recent weeks. I should mention that Canada�� oil reserves are ranked #3 after to Venezuela and Saudi Arabia with over 95% of these reserves being the oil sands of Alberta while the neighboring province of Saskatchewan (which the Bakken formation stretches into from South Dakota and Montana) along with offshore areas of Newfoundland also contain substantial production and reserves (Note:�Excluding oil sands, Alberta would have 39% of Canada�� remaining conventional oil reserves,�followed by�offshore Newfoundland with�28% and Saskatchewan with 27%).
Top 10 Information Technology Companies To Buy For 2014: TFS Financial Corporation(TFSL)
TFS Financial Corporation operates as a holding company for Third Federal Savings and Loan Association of Cleveland. The company provides retail consumer banking, including mortgage lending, deposit gathering, and other financial services in Ohio and Florida. Its deposit accounts consist of savings accounts, negotiable order of withdrawal accounts, certificates of deposit accounts, individual retirement accounts, and other qualified plan accounts. The company also offers residential real estate mortgage loans, home equity loans, lines of credit, residential construction loans, and consumer loans. It operates 39 full-service branches and 8 loan production offices. TFS Financial Corporation, through its subsidiary, Third Capital, Inc. engages in net lease transactions of commercial buildings; maintains minority investments in private equity funds, and provide escrow and settlement services; and reinsures private mortgage insurance on residential mortgage loans. The company w as founded in 1938 and is headquartered in Cleveland, Ohio.
Advisors' Opinion:- [By Jim Royal]
The special situation
For those of you following my Special Situations portfolio, Investors Bancorp is in a spot similar to First Financial Northwest (NASDAQ: FFNW ) and TFS Financial (NASDAQ: TFSL ) , both of which are featured substantially in the portfolio. While Investors Bancorp is still only a partially demutualized thrift (like TFS Financial today), it will soon become a fully public institution, like First Financial.
Top 10 Information Technology Companies To Buy For 2014: Grupo Casa Saba S.A. de C.V.(SAB)
Grupo Casa Saba, S.A.B. de C.V., through its subsidiaries, operates as a multi-channel and multi-product wholesale distributor primarily in Mexico. It distributes pharmaceutical products; health and beauty aids; publication products, such as magazines, books, albums, and stickers; food and non-perishable products; personal care and consumer goods; and general merchandise. The company also sells pharmaceutical products through its Farmacias ABC pharmacy chain located in Guadalajara, Jalisco; Farmacias Provee de Especialidades primarily located in Monterrey and Nuevo Leon of Mexico, as well as in the states of Chihuahua and Coahuila; and through Farmacias Benavides. In addition, it provides freight services to third parties. Further, it operates medical clinics; and offers specialized medical, rehabilitation, and surgical services, as well as provides real estate services. The company serves pharmacies, mass merchandisers, retail and convenience stores, specialty stores, sup ermarkets, and other specialized channels. As of December 31, 2010, it operated a distribution network consisting of 22 active distribution centers. It also operates in Brazil, Chile, and Peru. Grupo Casa Saba, S.A.B. de C.V. was founded in 1892 and is based in Mexico, Mexico.
Advisors' Opinion:- [By Tom Stoukas]
SABMiller Plc (SAB) lost 2.1 percent to 3,462 pence. The world�� second-largest brewer said earnings before interest, taxes and amortization in the year to March 31 rose to $6.42 billion. That missed the median estimate of 13 analysts in a Bloomberg News survey that called for $6.46 billion.
Top 10 Information Technology Companies To Buy For 2014: BYD Co Ltd (BYDDF)
BYD COMPANY LIMITED is principally engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Company operates its businesses primarily through secondary rechargeable battery business, which provides lithium-ion batteries and nickel batteries, which are applied in mobile phones, digital cameras, electric tools, electric toys and other portable electronic devices; mobile phone components and assembly businesses, which offers casings, keypads, liquid crystal display (LCD) modules, cameras, flexible circuit boards, chargers, and mobile phone design and assembly services, as well as automobile business, which provides automobiles, including G6, S6 and other series. Advisors' Opinion:- [By Chris Isidore]
Shares of Tesla (TSLA) shot up as high as $196, before easing off those highs later in the day. That topped the previous record set Sept. 30 Shares of Chinese electric carmaker BYD (BYDDF), in which Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500) has taken a stake, were also higher in trading in China and the United States.
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