At the start of my Real Money Portfolio, I want to address a few key points. I knew that my first pick had to be a company that could be the cornerstone of my portfolio and generate income through dividend payments along with the potential for growth in share price. Global diversification is also a key tenet that I have my eye on. The final criterion that I want to build around is value. When screening for these qualities, Vale S.A. (NYSE: VALE ) leapt out at me.
It's no secret that mining companies rely on worldwide growth for their success. With all of the worries permeating the globe these days, there is no shortage of reasons why companies like Vale have struggled over the past two years. During this time frame, this Brazilian giant has fallen nearly 50% on the New York Stock Exchange. The demand for its mined products like iron ore pellets, coal, and base metals just hasn't materialized like it did following the 2008 financial collapse. Because of this, Vale is now trading at just 1.15 times its book value. With a stable dividend yield north of its peer group, that's a rock-bottom price.
Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the Williston Basin Bakken play, the United States. As of June 30, 2011, the company?s principal assets included approximately 158,046 net acres located in the northern region of the United States; and 439 gross wells. Northern Oil and Gas, Inc. is based in Wayzata, Minnesota.
Advisors' Opinion: - [By Sean Williams]
Northern (under)exposure
No one ever said being an oil and gas driller was easy. Costs to build out a company, drill, and hire a workforce are huge, and if spot oil, liquid natural gas, and natural gas prices don't cooperate relatively quickly, then the chances of success can be quite low. However, I think the market isn't giving nearly enough credit to small-time Bakken shale player Northern Oil & Gas (NYSEMKT: NOG ) , which has all the tools essential for long-term profits.
Best Electric Utility Stocks To Invest In Right Now: Vanguard Large Cap Etf (VV)
Vanguard Large-Cap ETF, formerly known as Vanguard Large-Cap VIPERs, is an exchange-traded share class that seeks to track the investment performance of the Morgan Stanley Capital International (MSCI) US Prime Market 750 Index (Index). The Fund employs an indexing approach to provide exposure to predominantly large-cap companies in the United States, diversified across growth and value styles.
The Index represents the universe of predominantly large-capitalization companies in the United States equity market. Using full replication, the Fund invests in all of the Index stocks, holding each stock in approximately the same proportion as its weighting in the Index.
Advisors' Opinion: - [By Selena Maranjian]
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add some large-cap stocks to your portfolio but don't have the time or expertise to hand-pick a few, the Vanguard Large-Cap ETF (NYSEMKT: VV ) could save you a lot of trouble. Instead of trying to figure out which large-cap stocks will perform best, you can use this ETF to invest in lots of them simultaneously.
The basics
ETFs often sport lower expense ratios than their mutual-fund cousins. This ETF, focused on large-cap stocks, sports a relatively low expense ratio -- an annual fee -- of 0.1%. It yields about 2%.
This ETF has performed reasonably, but it's also very young, with just a few years on the books. It underperformed the S&P 500 in 2008 and 2010, though it beat it substantially in 2007 and 2009. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
Best Electric Utility Stocks To Invest In Right Now: CareFusion Corp (CFN)
CareFusion Corporation (CareFusion), incorporated on January 14, 2009, is a global medical technology company. The Company operates in two segments: Medical Systems and Procedural Solutions. The Medical Systems segment is organized around its medical equipment businesses. The Company�� Medical Systems segment�� business units and product lines include Infusion Systems, Dispensing Technologies, and Respiratory Technologies. The Procedural Solutions segment is organized around the Company�� disposable products and reusable surgical instruments businesses. The Company�� Procedural Solutions segment�� business units and product lines include Infection Prevention, Medical Specialties and Specialty Disposables. In August 2011, the Company acquired Rowa. In June 2012, the Company acquired U.K. Medical Limited. In July 2012, Natus Medical, Inc. acquired the Nicolet neurodiagnostic business from CareFusion. Effective December 31, 2013, CareFusion Corp acquired Vital Signs Inc from GE Healthcare, a unit of General Electric Co.
Medical Systems Segment
The Company�� develops, manufactures and markets capital equipment and related supplies for medication management, which includes its infusion and medication dispensing technologies, supply dispensing technologies and respiratory technologies. Its products are designed to enable healthcare professionals to improve patient safety by reducing medication errors and improving administrative controls, while simultaneously improving workflow and increasing operational efficiency. The Company sells these products primarily through its direct sales force, but use third-party distributors as well, particularly outside the United States. Many of its products in this segment are integrated with other information systems within the hospital, including financial and business systems that support patient admissions, discharges and transfers, operational systems that include inventory management and clinical systems that include pharmacy inf! ormation and electronic medical records.
The Company offers value-added services and programs, software technical services and clinical education, which are designed to enhance its customers��utilization of its medical equipment products. The Company�� project management, field service organization and customer call centers support its customers before, during and after product installation. The Company�� project management teams assist customers with the development of project implementation plans, which are designed to ensure rapid, seamless implementation of its products. The Company�� field service organization provides on-site expertise to resolve customers��service issues. The Company�� customer call centers provide additional support to its customers.
The Company is engaged in designing, developing and marketing of IV infusion systems that deliver medications and other fluids directly into a patient�� veins in precise, measured quantities over a range of infusion rates. The Company is provider of point-of-care systems that automate the dispensing of medications and supplies in hospitals and other healthcare facilities in the United States. The Company develops, manufactures, markets and services mechanical ventilators and associated consumables for patients with respiratory disorders.
The Company competes with Baxter International, B. Braun, Fresenius Kabi, Hospira, Omnicell, McKesson; Drager, and MAQUET.
Procedural Solutions Segment
The Procedural Solutions segment is organized around its disposable products and reusable surgical instruments businesses. In its Procedural Solutions segment, the Company develops, manufactures and markets single-use skin antiseptic and other patient-preparation products, non-dedicated IV infusion administration sets and accessories, reusable surgical instruments and non-dedicated ventilator circuits and other disposables used for providing respiratory therapy. The products in this segm! ent are u! sed in the operating room, interventional suites, and in the critical care departments of hospitals. The Company sells these products and services through a combination of direct sales representatives and third-party distributors.
The Company�� Infection Prevention business unit consists mainly of single-use medical products used in surgical and vascular access procedures, including skin preparation products and disposable IV infusion administration sets and accessories. The Company�� Medical Specialties business unit consists mainly of specialty medical devices used in delivering interventional care and reusable surgical instrumentation products. The Company�� Specialty Disposables business unit focuses on providing clinicians with respiratory consumable products that work either independently or in conjunction with its range of ventilators.
The Company competes with 3M, ICU Medical, Becton, Dickinson, Baxter International, B. Braun; Hospira; Smiths Medical; CR Bard, Integra Life Sciences, and Teleflex.
Advisors' Opinion: - [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 CareFusion (NYSE: CFN ) , whose recent revenue and earnings are plotted below.
- [By ovenerio]
In the medical supplies division (17%), Covidien competes with Becton Dickinson (BDX), 3M (MMM), Con- Med, CareFusion (CFN) and First Quality.
Strengths
- [By Sean Williams]
Heading notably higher as well, up 5.5%, was medical-products supplier CareFusion (NYSE: CFN ) which is said to be in talks as a possible acquirer of Britain-based Smiths Group's medical division. Although neither company would comment on a potential sale it would clearly be a positive for CareFusion since its revenue growth has stagnated in recent years. We should hopefully know more about these developments over the coming weeks.
Best Electric Utility Stocks To Invest In Right Now: Penske Automotive Group Inc.(PAG)
Penske Automotive Group, Inc. operates as an automotive retailer. It sells new and used vehicles of approximately 40 vehicle brands; offers vehicle maintenance and repair services; and engages in the sale and placement of third-party finance and insurance products, third-party extended service contracts, and replacement and aftermarket automotive products. As of December 31, 2011, the company operated 320 retail automotive franchises, of which 166 franchises were located in the United States and 154 franchises are located outside of the United States primarily in the United Kingdom. It also has operations in Puerto Rico and Germany. Penske Automotive Group, Inc. was founded in 1990 and is headquartered in Bloomfield Hills, Michigan.
Advisors' Opinion: - [By Richard Moroney]
Penske Automotive (PAG) announced a 6.3% increase in its quarterly dividend on October 23, saying the move reflected its confidence in the ��trength of the auto retail marketplace.��
- [By Ben Levisohn]
But just because Parker sees underperformance for consumer stocks, doesn’t mean that some can outperform (just don’t look for consumer staples). They screened for stocks that appear set to outperform over three months and 24 months based on their quantitative models, yet are also favorites of Morgan Stanley’s fundamental analysts. Stocks that meet the criteria include Delphi Automotive, Macy’s and Penske Automotive (PAG), while stocks that fail on all criteria include J.C. Penney and VF Corp. (VFC).
- [By Marc Bastow]
Automotive retail and transportation services giant Penske (PAG) raised its quarterly dividend 6.3% to 17 cents per share, payable on Dec. 2 to shareholders of record as of Nov. 11.
PAG Dividend Yield:�1.72%
- [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 Penske Automotive Group (NYSE: PAG ) , whose recent revenue and earnings are plotted below.
Best Electric Utility Stocks To Invest In Right Now: Tesco Corporation(TESO)
Tesco Corporation engages in the design, manufacture, and service delivery of technology based solutions for the upstream energy industry worldwide. The company?s Top Drive segment manufactures, sells, and supports top drives used in drilling operations to rotate the drill string while suspended from the derrick above the rig floor. This segment?s product line includes various portable and permanently installed top drive products with lifting capacities of 150 through 750 tons, which are hydraulically and electrically powered. It also provides top drive rental services on a day-rate basis for land and offshore drilling rigs and engages in the recertification of working units, such as top drives, power units, and other top drive product and component repairs. This segment serves drilling contractors, rig builders, equipment brokers, and oil and natural gas operating companies. Its Tubular Services segment offers proprietary tubular services using its Casing Drive System, a tool that facilitates running and reaming casing into a well bore; and installation service of deep water smart well completion equipment using the company?s Multiple Control Line Running System technology. This segment also provides equipment and personnel for the installation of tubing and casing, including power tongs, pick-up/lay-down units, torque monitoring services, connection testing services, and power swivels for new well construction, and in work-over and re-entry operations. The company?s CASING DRILLING segment provides CASING DRILLING technology, which allows an oil or gas well to be drilled using well casing pipe, eliminating the use of drill pipe and drill collars. Tesco Corporation was founded in 1986 and is headquartered in Houston, Texas.
Advisors' Opinion: - [By Alanna Petroff]
His famed investment company, Berkshire Hathaway (BRKA), is the third biggest Tesco (TESO) shareholder, with a stake of almost 4%.
Tesco is the U.K.'s leading supermarket operator.
Best Electric Utility Stocks To Invest In Right Now: Move Inc.(MOVE)
Move, Inc., together with its subsidiaries, operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America. The company operates REALTOR.com, a Web site that offers property listings and neighborhood profiles; and consumers information and tools designed to assist the customers in understanding the value of their home, preparing the home for sale, listing and advertising the home, home affordability, the offer process, applying for a loan, understand the mortgage options available, closing the purchase, and planning the move. REALTOR.com provides showcase listing enhancements; display ad products; and a series of template Websites primarily for agents and brokers. The company also offers 8i solution, a Web-based customer relationship management software application for real estate agents. In addition, it provides Market Snapshot and Market Builder products that allow real estate professionals to offer real-time mult iple listing services market updates and trend analysis to their online prospects and clients; and Move Rentals that displays rental listings. Further, the company provides graphical display advertisements, text links, sponsorships, and directories for advertisers for mortgage companies, home improvement retailers, moving service providers, and other consumer product and service companies. Additionally, it offers quotes from moving companies, truck rental companies, and self-storage facilities, as well as other move-related information on Moving.com Website. Move, Inc. also operates as an online real estate listing syndicator and provider of performance reporting solutions for the purpose of helping to drive an online advertising program for brokers, real estate franchises, and individual agents. The company was formerly known as Homestore, Inc. and changed its name to Move, Inc. in June 2006. Move, Inc. was founded in 1993 and is headquartered in Westlake Village, Californi a.
Advisors' Opinion: - [By James E. Brumley]
No, it's not a Trulia Inc. (NYSE:TRLA) or a Zillow Inc. (NASDAQ:Z). In fact, it's not even close to being a Zillow or a Trulia. Yet, for the time being anyway, Move Inc. (NASDAQ:MOVE) may be the best trade within the online real estate group right now.
- [By Peter Graham]
The Q3 2014 earnings report for mid cap�online real estate information stock Zillow Inc (NASDAQ: Z), a peer of small cap�Move Inc (NASDAQ: MOVE) which News Corp (NASDAQ: NWSA) is acquiring and small cap�Trulia Inc (NYSE: TRLA) which Zillow is also acquiring, is scheduled for after the market's close on Wednesday (November 5th). Aside from the Zillow Inc earnings report, it should be said that Move Inc reported Q2 2014 earnings on July 29th (revenue rose 7% to $61.3M, average monthly unique users of realtor.com庐's web and mobile sites grew 18% to 31.2M and Non-GAAP Loss Per Share was $0.03 per diluted share verses Non-GAAP Earnings Per Share of $0.11) and Trulia Inc reported Q3 2014 earnings on October 29th (total revenue rose 67% to $67.1M along with an adjusted net loss of $2.8 million, or $0.08 per share on a basic and diluted basis, compared with adjusted net income of $9.1 million, or $0.26 and $0.24 per share on a basic and diluted basis, respectively). The acquisition of Move Inc and Trulia Inc though (assuming the Federal Trade Commission approves the deal)�really leaves Zillow Inc as the main publicly traded online real estate information.�
- [By Mark Holder]
Zillow (NASDAQ: Z ) is facing increasing pressure for the leadership position in the online real estate marketplace. The recent purchase of Market Leader by Trulia (NYSE: TRLA ) places it in a more comparable position based on revenue. Move (NASDAQ: MOVE ) continues to make long-needed enhancements to realtor.com, but it has fallen far behind the monthly unique users, or MUUs, of Zillow and Trulia.�
- [By Lisa Levin]
Move (NASDAQ: MOVE) shares jumped 36.82% to touch a new 52-week high of $20.92 after the company agreed to be acquired by News Corp (NASDAQ: NWSA) for $21 per share, or $950 million.