Wednesday, 31 October 2012

Tesoro Is Cheaper Than Valero


When we compare two giant refineries, namely Tesoro (TSO) and Valero (VLO), we observe that the former is more attractive than the latter due to its low valuations, higher profit margins, better return on equity, and low dependence on debt. TSO is trading at attractive valuations, with an EV/EBITDA of 3.75x, at a discount when compared to its peer VLO's EV/EBITDA of 4x. Tesoro's five-year expected PEG ratio of 0.75 in comparison to 0.99 for Valero depicts that TSO's investors can buy growth cheaply. Therefore, we recommend investors to prefer Tesoro over Valero.
Tesoro should be preferred by investors due to its increasing crack spreads, higher capacity utilization, and increasing throughput. We believe the company will acquire BP's (BP) Carson refinery with its strong financial and legal position. This acquisition in Carson City will enable the company to achieve synergies because of its strategic location with TSO's West Coast refinery. Moreover, this acquisition will further increase the company's profitability through managing the carbon tax regulation in the California region.
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Tesoro Is Cheaper Than Valero


When we compare two giant refineries, namely Tesoro (TSO) and Valero (VLO), we observe that the former is more attractive than the latter due to its low valuations, higher profit margins, better return on equity, and low dependence on debt. TSO is trading at attractive valuations, with an EV/EBITDA of 3.75x, at a discount when compared to its peer VLO's EV/EBITDA of 4x. Tesoro's five-year expected PEG ratio of 0.75 in comparison to 0.99 for Valero depicts that TSO's investors can buy growth cheaply. Therefore, we recommend investors to prefer Tesoro over Valero.
Tesoro should be preferred by investors due to its increasing crack spreads, higher capacity utilization, and increasing throughput. We believe the company will acquire BP's (BP) Carson refinery with its strong financial and legal position. This acquisition in Carson City will enable the company to achieve synergies because of its strategic location with TSO's West Coast refinery. Moreover, this acquisition will further increase the company's profitability through managing the carbon tax regulation in the California region.
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Sprint: A Turnaround Stock To Buy


The third largest telecom carrier in terms of subscribers, Sprint Nextel Corporation (S), announced its quarterly results last Thursday, posting a wider loss in the third quarter as compared to the same quarter of the previous year. The company, which recently was part of the $20 billion deal with the Japan-based telecom operator SoftBank (SFTBF.PK), reported a loss of $767 million and a loss per share of $0.26, which was largely due to the expenses incurred in regards to its Network Vision Program. Loss per share of $0.26 is much lower than what analysts were expecting. Sprint recognized approximately $400 million in depreciation during the quarter for the shutdown of its iDen Nextel platform, which affected its profitability, however, its network vision program, which involves shutting its iDen Network, is well on track, as the number of sites that are ready for construction or already underway has doubled to reach a total of approximately 14,000 sites.

Paccar Is A Buy Despite Weakness In Truck Manufacturers


Paccar Ltd (PCAR), the truck manufacturer, has topped earnings estimates for all of its previous four quarters. While the same did not happen this time around, as the company produced an EPS in-line with expectations, it did manage to top revenue estimates.
PCAR is a light, medium and heavy duty truck and engines manufacturer. The company sells its trucks to other dealers with nameplates of Kenworth, Peterbilt and DAF. During the past three months, analyst estimates for EPS had been brought down from 78 cents too 66 cents. The decline in both earnings and revenue figures paints a dirty picture for not only the company, but also for the overall truck manufacturer industry. The PCAR management itself admitted that truck orders had been weak from the North American and European markets.
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Buy Linn Energy: 7% Dividend Yield With Hedged Oil And Gas Production



Linn Energy (LINE) has shown impressive third quarter results, with EPS of $0.45 beating analyst estimates by $0.16. Its superior financial performance is reflected in the 14% increase in profitability, 65% improvement in EBITDA margins, and 106% rise in average daily production. In our opinion, its high dividend yield of 7 percent and dividend payout of 60.5 percent makes it a good prospect for dividend-seeking investors. We believe the company is on the right track to achieve cost efficiencies, and its continuously increasing reserves portray its bright future profitability. Therefore, we reiterate our bullish stance on the stock.
Linn Energy is one of the largest U.S. oil and gas development, production and exploration companies. Its reserves have shown remarkable growth of 50% over the course of the last year, and a CAGR of approximately 65% from 2006 to 2012. It had recorded total reserves of 5.1 Tcfe till the end of first half of 2012, as reflected in the chart below. We assume the continuation of this reserve growth rate will enable the company to generate a sustainable amount of revenue in the coming period.
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Berkshire Hathaway, Hedge Funds Are Buying DaVita


Between September 26th and September 28th, Berkshire Hathaway (BRK.A) purchased 283,403 shares of DaVita Inc. (DVA), in the price range of $100.96-$103.7272. Lately, it has been observed that Berkshire continues to purchase shares, and the latest figures show that the current holdings of Berkshire amount to $10,547,040. DVA has also been reported to be a consensus buy among hedge funds in the second quarter of 2012. DVA currently trades at all time high prices of 16x its forward (2013) earnings.
DVA is a provider of kidney dialysis services, chiefly within the U.S., for patients suffering from chronic kidney failure (end stage renal disease or ESRD). It served a total of 142,000 patients throughout the U.S. 93% of the consolidated net operating revenue was accounted for by the company's dialysis and lab related services, while the remaining was chipped in by other ancillary services, which related to the core business of providing dialysis services.
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2 Solar Stock Buys To Play A Solar Rebound



The solar industry has become extremely competitive over the last few years. The primary reason was a decline in polysilicon prices that led to Chinese solar manufacturers adding to their production capacities (to benefit from declining raw material prices). The result was an excess supply of solar cells that led to a massive decline in solar ASPs and hitting the bottom line of solar companies. In this scenario, we are recommending investors to take long positions in MEMC Electronic (WFR) and SunPower Corporation (SPWR) based upon the respective following key points:
MEMC Electronic:
  • MEMC has shown impressive revenue growth of 78% in the second quarter, led by strong demand from uncertain European markets.
  • The stock has shown an upward movement of 30% over the course of the last three months, and has significant potential to show a further upside.
  • The drastic increase of 120% in the PV Industry in 1H2012 makes it a good prospect to take advantage of ongoing increasing demand in the United States.
  • The stock is trading at low valuations, as compared to its peers in the industry.
  • Its earnings will grow by 280% by the end of FY2013, according to 16 analyst estimates.
  • The company has significant potential to capture growing demand in emerging solar markets in the U.S., India and China.

Monday, 15 October 2012

Benefits of Buying Stocks


The most lucrative types of investment available in the market nowadays are a trading of stock in the stock market.  However there are many conditions before you start trading of stocks in any market.  You have to be experienced so that you can minimize the loss whenever you have stocks to buy and preserve profits.  If you do this with great care you can have a lot of investment and returns for yourself.

Stocks are one of the most liquid investments that can have both a benefit under his he signed.  Which one works for you will depend entirely on your skill of anticipating the market trends and the stock market you.  By liquidity it is meant that you can convert your top stocks back into cash in a very short time.  It has been observed that people who have the knowledge and skill of the stock trading market usually have a positive return on their investments as they are likely to minimize all the risks involved.

Friday, 12 October 2012

The Three Rules for Beginners in Stock Market


A stock market is the market where shares or stocks are sold as securities to the general public or other trading companies.  This is also a meeting place for brokers and buyers to come together and exchange top stocks.  Sometimes a stock market exists physically in a place where buyers and Sellers come together and have stocks to buy.  On other occasion a stock market can also exist on the Internet, where buyers and sellers gather together to exchange and trade electronically.  These other two types of stock markets and are known as the primary and secondary markets.

The primary stock market that has the physical location is basically the place where big companies, sell their shares to expand their businesses and generate lots of funds.  When the company is doing this for the first time and changing its status to public limited company, then the issuing of shares by that company is called the Initial Public Offering.  Shares and top stocks are small certificates of ownership of the company.  When people buy the shares, they have a part of ownership in the company.  They also get lots of dividends which are profits shared by the companies.

Wednesday, 10 October 2012

Top Three Stocks To Buy Now For All Time


Summary 
Stocks are certainly considered as a handy investment. Essentially there are several stocks to buy available for the researchers as well as investors in the international stock market at the moment. But an immediate question arises here that what are the most suitable and compatible stocks to buy now for the investors? Don’t forget there are more than enough stocks available for the researchers. However, we have to consider that gold, oil & gas stocks are reckoned to be one of the best dividend paying stocks for us.

Gold stocks to buy 
Gold is standard value. The worth of gold can never be diminished. Rather gold price is aimed to be increasing ever and ever. At the moment, many individuals have a huge amount of gold stocks in United States. You know that gold worth is beating all other stocks worth. Indeed big tycoons, goldsmiths and rich people are stocking gold in bulk at the moment. In fact, they are generating huge returns and profits by stock gold reserves in their lockers. So if you are keen to increase your incomes and net profit, you need to invest in gold stocks. I am very much sure that your turnover will be increased within a shorter time span. Several gold stock companies are buying and selling gold stocks around the world. So don’t waste anymore time to buy top stocks to buy.