Restoration Hardware (RH) was Barron's latest weekend victim. To me, Barron's bearish take is reminiscent of its Facebook (FB) call, which was also an article I questioned. The similarities and situations surrounding the two calls include both stocks being post-IPO and both articles implying that stock performance indicates value and future trends. Here is why Barron's is wrong, again!
A Look Back At Barron's Premature Call
Back in September, just four months after Facebook's IPO, Barron's published a story saying "Facebook Is Worth $15." The core arguments for Barron's included Facebook's P/E ratio, its price/sales ratio, mobile monetization concerns, bad acquisitions, and that Facebook was becoming "less cool."
I immediately responded with an unbiased look at the article, not owning shares of Facebook but believing that much of the call was created due to a falling stock price. I argued that it wasn't fair to compare Facebook's P/E and price/sales ratios to Google and Apple, and that any trading metrics should be compared to the likes of LinkedIn or Yelp, showing Facebook as cheap.
Hot New Companies To Watch In Right Now: Lattice Semiconductor Corporation(LSCC)
Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP family for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP for the security, surveillance, and display markets. It also provides programmable logic device (PLD) products comprising various versions of ispMACH4000 in-system programmable complex programmable logic device family; MachXO family that is designed for a range of low density applications; platform manager, power manager, and ispClock programmable mixed signal devices; and software development tools and intellectual property cores. The company sells its products directly to end customers through a network of independent manufacturers? representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company was founded in 1983 and is headquartered in Hillsboro, Oregon.
Advisors' Opinion:- [By Lee Jackson]
Lattice Semiconductor Corp. (NASDAQ: LSCC) is a top chip stock to buy at Jefferies. The company announced last month three new complete reference designs that will make it easier for electronic OEMs to deliver media-rich experiences to their end users by taking advantage of low-cost, industry-standard MIPI (Mobile Industry Processor Interface) camera, application processor and display technologies. The Jefferies price objective for the stock is $6.50, and the consensus is also at $6.50. Lattice closed yesterday at $4.63.
- [By kcpl]
Lattice Semiconductor (LSCC) is doing well. It has seen improvements in its operations. The company excels in the manufacture of programmable chips which are sold in various segments such as mobile, communications, automotives, industrial etc. The reason for the company�� strong performance has been its key customers such as China Mobile and Cisco. On the back of a strong client base, Lattice has seen a good 40% growth in its stock price. Let us take a look at its business.
Top Cheap Companies To Own For 2014: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
Advisors' Opinion:- [By Holly LaFon] aremark is the nation's premier integrated pharmacy services provider, combining one of the nation's leading pharmaceutical services companies with the country's largest pharmacy chain.
Owens had a relatively small holding of 200,000 shares which he purchased in the third quarter of 2011 at about $36 per share. In the fourth quarter, he increased his holding by 50%, adding 100,000 shares at about $37 per share. CVS�� share price has actually increased more than 20% in the last year, and more than 21% in the fourth quarter alone.
Record-setting third-quarter earnings results, announced Nov. 3, 2011, contributed to the rise. Net revenues increased 12.5% to a record $26.7 billion. Revenues in its Pharmacy Services segment rose 25.8% to $14.8 billion, due primarily with the addition of a previously unannounced, long-term contract with Aetna Inc., and its acquisition of the Medicare prescription drug business of Universal American Corp. in the second quarter of 2011.
In the first nine months of 2011, the company also returned over $3 billion to shareholders in the form of dividends and share repurchases.
CVS has been growing over the long term as well. Its revenue per share increased at a 10-year annual rate of 11.5%, and its free cash flow per share increased at a 10-year annual rate of 21.4%. GuruFocus rated CVS Caremark the business predictability rank of 4.5-star. Steven Romick did an extensive analysis of CVS here.
Boston Scientific Corp. (BSX)
Boston Scientific Corporation is a worldwide developer
- [By Brian Orelli]
Instead, Pfizer is fighting against counterfeit medications, often sold on the Internet, which may not even contain the active drug. To battle back, the pharma is entering their realm, selling Viagra direct to consumers through its website. Pfizer won't fill the orders directly; they'll go through CVS Caremark's (NYSE: CVS ) mail-order pharmacy, which will presumably get a cut of the sales.
Top Cheap Companies To Own For 2014: Cloud Peak Energy Inc(CLD)
Cloud Peak Energy Inc., through its subsidiaries, engages in coal mining operations in the Powder River Basin of the United States. It produces sub-bituminous steam coal with low sulfur content for electric utilities and industrial customers. The company owns and operates Antelope surface coal mine located to the south of Gillette, Wyoming; the Cordero Rojo surface coal mine located to the south of Gillette, Wyoming; and the Spring Creek surface coal mine located in Montana. It also owns a 50% interest in the Decker surface coal mine located in Montana. As of December 31, 2010, it had approximately 970 million tons of proven and probable reserves. The company was founded in 1993 and is headquartered in Gillette, Wyoming.
Advisors' Opinion:- [By Reuben Brewer]
A ready supplier
Malaysia, which is a coal export powerhouse, is going to be there to help fill the void. However, Cloud Peak Energy (NYSE: CLD ) notes that Malaysian coal is at the lower end of the quality spectrum, particularly compared to its U.S. Powder River Basin coal. That's a positive sign for Cloud Peak's export hopes, particularly as China looks to clean up the most obvious pollution problems related to coal. Right now, Cloud Peak exports about 5% of its coal, but it plans to increase that as U.S. ports increase their capacity. - [By Ben Levisohn]
The price of natural gas, however, has dropped 0.4% today, and wouldn’t you know it, coal stocks are weak. Cloud Peak Energy (CLD) has dropped 4.2% to $16.15, while Peabody Energy (BTU) has fallen 2.9% to $17.27. Arch Coal (ACI) is off 1.3% at $4.45, Alpha Natural Resources (ANR) has declined 1.4% to $5.76 and Consol Energy (CNX) has dipped 0.7% to $31.35.
- [By Ben Levisohn]
Heading into the 2Q14 earnings season, we think the coal sector continues to be unloved with met coal prices close to bottom while steam coal prices are slightly cooling off after a strong rally during 1Q14. Similar to 1Q14, the two major challenges for coal producers remain weak met coal pricing and rail service limiting steam coal volume uptick. On the positive side, since 1Q14, we have gotten about 16 MTPA of global met coal production cuts, which are slowly flowing through the system but could take another three months to drive prices higher. On the other hand, rail service (BNSF and CSX) challenges continue, and we do not expect to see any major improvement through 2H14, which is later than expected during 1Q14, when some producers indicated 3Q14 normalization. We expect a majority of earnings calls to be focused on those two themes over and above company-specific issues (asset sales/divestitures, cost control, and balance sheet management). While still in the early days, we will look for any color on the coal industry’s preparedness for eventual implementation of GHG regulation announced by the EPA in early June. Within our coal coverage, we are lowering our 2014 EBITDA estimates by an average of 12% for the group, while our 2015��016 estimates are largely unchanged. In addition, we are adjusting our price targets for Cloud Peak Energy (CLD) to $25 from $26 and Walter Energy (WLT) to $7.50 from $8.50 as we update our coal price deck for 2Q14 actuals and the 3Q14 met coal benchmark settlement, as well as adjust for rail service issues in the Powder River Basin. In terms of our overall coal coverage, we continue to prefer steam coal names and/or low-cost met coal assets with solid balance sheets. Our Outperform rated names include Arch Coal, Peabody Energy, Cloud Peak Energy, and Consol Energy (CNX).
Top Cheap Companies To Own For 2014: Emerson Electric Company(EMR)
Emerson Electric Co. operates as a diversified manufacturing and technology company. The company engages in appliance solutions, climate technologies, industrial automation, motor technology, network power, process management, professional tools, and storage solutions businesses. Its appliance solutions business provides appliance controls, appliance motors, heating products, and white-rodgers; climate technology business provides heating, ventilation, air conditioning, and refrigeration (HVACR) solutions for residential, industrial, and commercial applications; and industrial automation business offers bearings and power transmission products, electrical power generation products, electric motors, variable speed drives and servos, electrical products, material joining solutions, fluid automation products, and wind turbine systems. The company?s motor technology business provides appliance motors, HVACR motors, DC motors, fractional horsepower motors, integral horsepower a nd larger motors, and drives; network power business provides power, precision cooling, connectivity, and embedded solutions; and process management business provides various wireless related products from self-organizing field networks to wireless asset and people tracking. Its professional tools business offers pipe working and threading equipment, pressing technology, utility locating and visual diagnostics systems, drain maintenance tools, power tools, air tools, general purpose hand tools, wet/dry vacs, job site storage equipment, truck tool boxes and equipment, and van storage equipment; and storage solutions business provides shelving and storage products for residential, commercial, and foodservice needs, as well as offers specialized carts, mobile computer workstations, and cabinet fixtures. The company was founded in 1890 and is headquartered in St. Louis, Missouri.
Advisors' Opinion:- [By Lee Jackson]
Rackspace Hosting Inc. (NYSE: RAX) recently added a huge new customer in Emerson Electric (NYSE: EMR). In January Emerson started using Rackspace to help tune and monitor climate control products for residential and commercial customers. Adoption has gone so well that Rackspace expects Emerson to hike its commitment from 43 servers today to 100 by year’s end. The consensus price target for the stock is posted at $52. The stock closed at $50.60.
- [By Alex Planes]
Eaton's been moving higher all year, but this is just the continuation of a longer bullish trend that's followed the company's efforts to both deepen and broaden its reach. A $12 billion acquisition last year put Eaton in direct competition with Emerson Electric (NYSE: EMR ) and ABB (NYSE: ABB ) in energy infrastructure. That acquisition provided a double benefit for Eaton's bottom line, as the acquired Cooper Industries provided a low-tax domicile in Ireland that's projected to save Eaton many millions each year. Every advantage counts, as Eaton has to contend with super-conglomerate General Electric (NYSE: GE ) in several of its most important segments. Eaton and ABB are also both at risk of disruptive innovation from electrical integration systems that could replace several green-car charging components in one fell swoop.
- [By Chuck Carnevale]
Actually, there are several companies on these lists that qualified for either or both of my favorites lists. For example, Aflac (AFL) and or Emerson Electric (EMR) could easily be on both lists. My point is that I feel the reader should give the same consideration to each of these names as they would the two top 10 lists. To be clear, selecting the top 10 was difficult and therefore to a great extent subjective on my part. My method was to simply run a F.A.S.T. Graphs��on each Dividend Champion with above-average total return calculations. Then my lists were created by picking and choosing those companies that from my review looked best based on value, earnings and safety.
Top Cheap Companies To Own For 2014: Rent-A-Center Inc.(RCII)
Rent-A-Center, Inc., together with its subsidiaries, primarily engages in leasing household durable goods to customers on a rent-to-own basis. The company?s stores offer durable products, such as consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. It also provides merchandise on an installment sales basis in its stores. As of December 31, 2010, the company operated 3,008 company-owned stores in the United States, and in Canada, Puerto Rico, and Mexico, including 42 retail installment sales stores under the names ?Get It Now? and ?Home Choice?; and 18 rent-to-own stores located in Canada under the ?Rent-A-Centre? name. It also operates 209 franchised rent-to-own stores in 32 states under the ColorTyme trade name; and 384 kiosk locations under the ?RAC Acceptance? model. In addition, the company, th rough its ColorTyme?s franchised stores, offers custom rims and tires for sale or rental under the trade names ?RimTyme? or ?ColorTyme Custom Wheels?. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of Rent-A-Center (NASDAQ: RCII) were down 21.51 percent to $24.51 on Q4 results.Apple (NASDAQ: AAPL) shares tumbled 7.80 percent to $507.55 after the company issued weak sales forecast for the second quarter and reported downbeat holiday iPhone sales.
- [By Garrett Cook]
Rent-A-Center (NASDAQ: RCII) shares tumbled 11.08 percent to $25.83 after the company issued a downbeat guidance for the second quarter. The company expected adjusted earnings of $0.36 to $0.38 per share on revenue of around $773 million.
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