Since 2007, we had an undervalued market, as measured by the standard averages. I no longer think this is the case. Fortunately, however, we are not buying based on averages, notes Russ Kaplan, editor of Heartland Advisor.
We are buying individual companies and there are still many which we think qualify as buy candidates. Because of this, I do not recommend changing strategies. We do, however, see the need to be much more selective.
I first recommended Deere & Company (DE) in 1998. Since then the price has more than doubled and the dividend has been above average. So why buy it now?
I look for a price which is below intrinsic value (how much the company is really worth). This is the case with Deere, since its intrinsic value has grown more than the price at which the stock is now trading.
Back in 1837, when the Industrial Revolution was starting, and agriculture was moving beyond the horse and wooden plow, Deere was established. Their first invention and product was the steel plow, which ensured improvement for planting deeper rows.
Hot Undervalued Companies To Own In Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP ) has earned a coveted five-star ranking.
Hot Undervalued Companies To Own In Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Dan Caplinger]
6. Caterpillar (NYSE: CAT ) posted much uglier numbers yesterday, with a 16% drop in revenue driving a much larger 43% decline in earnings per share. Cutting its full-year earnings guidance by $0.50 to $6.50 took its toll on the stock, and further weakness today brought Caterpillar's post-earnings share-price drop to 4%. As long as commodity prices remain subdued and China doesn't heat up with greater levels of construction activity, Caterpillar will likely remain down.
Top Oil Companies To Watch In Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Taylor Muckerman and Joel South]
Many oil and natural gas service companies called the fourth quarter of 2012 a trough in the North American market. By all accounts so far during this reporting period, that appears to be especially prescient. International heavyweights Halliburton (NYSE: HAL ) and Schlumberger (NYSE: SLB ) both witnessed signs that a second half turnaround us likely upon them and the industry as a whole.
- [By Tyler Crowe]
Even though the country has so much oil, it has struggled to keep up production growth and has asked for outside help. This week, Venezuela has signed financing deals with Chevron (NYSE: CVX ) , Schlumberger (NYSE: SLB ) , and Russia's Rosneft that will total $5.6 to expand production. The country hopes to increase production from 3 to 5 million barrels per day by 2015.
Hot Undervalued Companies To Own In Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Traders Reserve]
I do believe as Wal-Mart gets hurt, the dollar stores will do a little better ��especially Dollar General (DG), but don�� overlook� Dollar Tree (DLTR). Wall Street is worried about Costco (COST) but I believe it will actually outperform expectations. Costco seems to have figured out how to grow much faster than Wal-Mart and still provide affordable health insurance for most employees.
- [By Demitrios Kalogeropoulos]
Costly market share gains
The problem is that Family Dollar has had to pay up for its increasing market share and sales levels. The company's gross profit margin fell by more than a full percentage point, to 34.7% last quarter. In contrast, Dollar Tree (NASDAQ: DLTR ) booked an expansion of profits, to 35.2%, continuing a trend that's seen it pull away from Family Dollar. - [By Jon C. Ogg]
Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.
Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.
No comments:
Post a Comment