1 Iron Ore Stock To Buy To Play A Rebound, 1 To Avoid

The iron ore market is showing signs of improvements, as prices increased to a three-month high and Brazil reported the third highest shipments ever in a month. However, as we will discuss later, the market still remains balanced and investors are looking at what actions the new leadership will take in China to boost steel demand.
We have a bullish stance on Vale S.A. (VALE). We think that this low cost producer with its long life reserves and strong balance sheet is well positioned to benefit from a rebound in iron ore prices. Vale is also offering a dividend yield of 3.4 per cent. However, the CLF Natural Resources (CLF) has operational concerns and it might cut dividend if prices do not rebound. Other than a dividend cut, raising capital and selling core assets are the other two options for CLF. We would advise investors to avoid this iron ore stock for the time being.
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Why Will Agency Mortgage REITs Get Hit The Most From QE3?

The announcement and the launch of the much-awaited third round of quantitative easing (QE3) by the U.S. Federal Reserve (Fed) has had mixed effects on the U.S. mortgage industry. Mortgage REITs are put in a difficult position as the street and investors in general welcomed Fed's new initiative to stimulate the sluggish US economy. Though we believe the interest spreads at agency mortgage REITs will be hurt, mortgage REITs that invest primarily in non-agency REITs will benefit. Mortgage REITs, which have large proportions of adjustable-rate securities in their holdings, will be least hurt by the acceleration in prepayments. Therefore, we recommend long positions in non-agency mortgage REITs. The remaining of the investment thesis aims at discussing the effects of QE3 on agency mortgage REITs (Annaly Capital (NLY) and American Capital Agency (AGNC), mortgage REITs that invest exclusively in adjustable rate securities (CMO), non-agency mortgage REITs (Newcastle Investment (NCT) and PennyMac (PMT)), and mREITs that hold a combination of agency and non-agency mortgage-backed securities MFA Financials (MFA) and Invesco Mortgage (IVR).

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AT&T: Limited Dividend Growth For This Dog Of The Dow

AT&T (T) is one of the dogs of the Dow, which is a strategy designed to pick ten stocks offering the highest dividend yields from the Dow Jones Industrial Average. Under this strategy, an investor who purchases these stocks should outperform the market benchmark on a total return basis. The telecom industry in the US is characterized by companies that boast high dividend yields. AT&T recently announced that it will increase its quarterly dividend to 45 cents per share, which roughly translates into a dividend yield of 5.4%, based on the current share price of $33.20. In the rest of the report, we will discuss the company's cash flow position and the sustainability of its high payout.

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Dividend Growth Of Newmont Mining: A Story Of Rising Costs And Declining Production

Although gold prices increased recently and a majority of the analysts interviewed by Bloomberg remain bullish on the commodity in the short term, we have a neutral rating on Newmont Mining Corporation (NEM). We believe the company has a strong base of operations but the rising costs, particularly at its APAC operations, and declining production remain as concerns for NEM.
Recent Developments in Gold:
On speculations that there will be more stimulus measures in the wake of President Obama's re-election, gold surged to a three-week high and the precious yellow metal is set to achieve its highest weekly gain since January 2012.
Gold ETFs tracked by Bloomberg surged to an all-time high of 2,596.1 metric tons, valued at $144.5 billion. This year gold prices rose by 11 per cent, and have been rising for 12 straight years, the longest upward trend in at least nine decades.
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Annaly Capital's Diversification Out Of Agency MBS

On the 12th of November 2012, Annaly Capital (NLY), one of the large cap US Agency mortgage REITs, announced the proposed acquisition of CreXus Investment (CXS) for a price of $12.5 per share. CreXus is a commercial mortgage REIT that does not only invest in agency residential mortgage backed securities but also in commercial mortgage loans and other commercial real estate debt. It also invests in commercial real estate property, commercial mortgage-backed securities and other commercial real estate-related assets.

The acquisition signifies Annaly Capital's attempts to diversify its asset base in a challenging environment where the Fed is committed to buying Agency mortgage backed securities. This has resulted in a decline in the yields for these securities. In several of our previous reports, we favored mortgage REITs with significant holdings of non-agency mortgage backed securities as opposed to agency mortgage backed securities. Annaly Capital is committed to allocating up to one fourth of its equity to assets other than agency residential mortgage backed securities. The company is also committed to restructuring its capital by buying back convertible notes worth $441 million, extending the duration of its short-term borrowings (repurchase agreements) by another 93 days to 220 days, and lowering the company's cost of capital by issuing preferred shares and convertible notes worth $1.5 billion.
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Down In Its Own Rubble; The Sorry State Of J.C. Penney

J.C. Penney (JCP) is a struggling company with blurred strategic horizons and increased loses. Strategic revamping by changing layouts has been the key strategy of J.C. Penney this year. The company has tried to develop mini stores within stores but the strategy has faced many issues because of a deviation from the core competitive advantage i.e. promotions and low pricing.
Q3 earnings have not been able to change our bearish stance that we took in our previous articles. We have been standing by our bearish stance mainly because of a partial failure that the company has faced in its restructuring efforts. The forecast of the CEO of bad financial results this year added weight to our belief. Quite interestingly, the results of the third quarter seem to agree with the forecasts.
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AK Steel: A Steel Stock To Sell Despite Price Hikes

Scrap prices have increased marginally because scrap demand has increased and mills are trying to build up inventory before the winter season. However, overall steel demand remains depressed and we believe AK Steel (AKS) is facing a double-edged sword as costs increase and demand remains depressed. We maintain our sell rating on AKS.
Since the last time we wrote on AK Steel, the steel manufacturer has announced that it will increase prices of some of its flat rolled products, (200, 300 and 400 series flat rolled stainless steel products) effective from shipments on December 30, 2012. This was AK Steel's second price increase in one week. On November 5th, AKS announced, with immediate effect, a $50 per ton increase in spot market base price for carbon flat-rolled steel products, mainly used in automobiles and appliances industries.
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RF Micro Devices: How To Play The Growing Telecom Market Of China

We recommend investors to take a long position in RF Micro Devices (RFMD) as the company has significant growth potential due to its presence in the growing telecom market of China. Rising smartphone penetration and upgrades to the faster 3G and 4G technology by the telecom carriers should work in the favor of RFMD by increasing demand for its products and services. The stock is trading at cheap valuations and the current price of $4.45 could prove to be a good entry point for investors to take advantage of its future growth.
RF Micro Devices Inc. designs and manufactures high performance radio frequency components and semiconductor equipment for its customers, both domestically and internationally. The company's products enable mobility and connectivity in the mobile devices, wireless infrastructure, local area network, cable television, and aerospace and defense markets.

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Bottom In Coal Stocks?

Last week, Arch Coal Inc. (ACI) reported its third quarter results, which were better than expected. The stock was up 10% on the earnings release. Strong results for the company were driven by better demand and cost control efforts. ACI's results for the quarter are being viewed as a positive sign for the industry.
Arch Coal Inc. is the second largest domestic coal producer and one of the world's largest coal producers. It sold more than 156 million tons of coal in 2011. Last week, the company reported its third quarter 2012 results, which were better than what the market and analysts were anticipating. Reported revenues for the quarter were $1.09 billion, down 9% YOY, beating analysts' revenue expectations of $1 billion. Reported net income for the quarter was $45.8 million or 22 cents per share as compared to $8.9 million or 4 cents per share in the third quarter of 2011. The company was able to beat earnings estimates as analysts were expecting a loss of 16 cents per share. In 3Q 2012, EBITDA increased to $257 million, up 21% YOY. Better than expected results for the company in 3Q 2012 were mainly driven by cost control efforts, rising natural gas prices and favorable weather, leading to better domestic thermal coal demand.
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Why Is This Brazilian Oil Company A Buy?

We revise our future outlook to bullish on Petroleo Brasileiro Petrobras (PBR), based upon achieving 98 percent of nominal capacity, 31 percent increase in EBITDA, operational efficiencies and production start-up in the field of Campos basin and Gulf of Mexico. In our opinion, the company's expansion plans, its cost control philosophy and the expected increase in production activities, will enable the company to further improve its profitability position.
PBR's bright future prospects are reflected in its production start-up of Baleia Azul field in the Campos Basin, which will enable the company to add 100,000 barrels per day to its production capacity by February 2013. Moreover, investment in another lucrative project of oil and gas exploration in Chinook water field would help the company add 80,000 barrels of oil per day to its production portfolio. Currently, the company is on the track towards strengthening its position and becoming attractive for value investors.
In Q3, the company benefited profits of $2,744 million, as compared to a loss of $685 million in the third quarter of 2011. It has also expanded its margins by making its operations more efficient. PBR's EBITDA increased by 31 percent over the course of last one year.
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AIG Earnings Beat, Cheap Valuation Make Us Bullish

On November 1, 2012, American International Group (AIG) reported (pdf) performance for its third quarter, which topped analysts' consensus expectations by 12%. AIG reported a bottom line of $1 per share against consensus mean expectation of $0.88 per share. The company has shown a remarkable turnaround since 2008, when it was rescued with a massive bailout package. The Treasury Department of the US government has recouped $197.4 billion on its initial investment of $182.5 billion in the company, and is no longer the majority owner of the company.
The performance in the third quarter of the current year was an improvement on the same quarter of the previous year. The following table is a snapshot of the company's performance during the third quarter.
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Trina Solar: Not The Way To Play A Solar Rebound

We recommend avoiding a position in Trina Solar Ltd. (TSL). Our recommendation is based upon the anti-dumping policy of the U.S against Chinese solar manufacturers, the rising price of polysilicon, a decline in profit margins, rising inventory, and slow demand in Europe. Trina missed its second quarter earnings by $0.51 and declared Q2 EPS of $1.3. Its revenue fell by 40% YoY and it missed revenue estimates by $52 million. The company has cut its future guidance based upon demand constraints and a high level of inventory.
The company got a hit because of the 30%-250% U.S. tariffs that were imposed on Chinese solar imports in a bid to protect domestic producers. The impact was seen in the results for the last quarter, as the company's revenue from U.S. markets declined from 36.8% to 26.3%. The revenue mix from Germany increased up to 42.1% from 36.7% in the first quarter. But Trina Solar has faced poor demand from European markets due to snowy weather conditions and, most importantly, European markets are in their maturity stage.
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UBS AG: Bottom Line Improves

On October 30, 2012, UBS AG (UBS) reported solid performance for the third quarter of the current year. All business segments reported growth in their respective bottom lines, while the company also built a strong capital base during the second quarter. The bank reported pre-tax earnings of Swiss Franc CHF 1.4 billion after adjusting its own credit losses, impairment losses and restructuring provisions. This is against a pre-tax profit of CHF 951 million at the end of the second quarter of the current year. The improvement in the bottom line, when compared to the linked quarter, was largely due to an improvement in net interest and trading revenues.

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MetroPCS Beats Earnings: Are Consumers Shifting To Prepaid Phones?

The largest pay as you go telecom carrier in the United States, MetroPCS (PCS) Communications Inc., recently reported its third quarter results. Results were impressive as the company more than doubled its bottom line from the same quarter last year. The company posted earnings per share of $0.52 on revenues of $1.26 billion. Both revenues and earnings grew, by 5% and 177%, respectively. The company ended the quarter beating estimates for both revenues and earnings. Third quarter revenues of $1.26 billion beat revenue estimates of $1.25, whereas, PCS beat earnings estimate by a comfortable margin of $0.26. Despite the fact that earnings were helped by a $53 million gain on sale of certain securities, the company would have still beaten the EPS estimates by a margin of $0.19 per share after excluding the effects of the said sale of securities.

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U.S. Steel: Short-Term Troubles Are Not Going Anywhere

Based on third quarter results, lower than expected Q4 guidance and weaker tubular outlook, we maintain our neutral rating on United States Steel Corporation (X). The largest producer of steel in United States by volume, U.S. Steel reported third quarter adjusted EPS of $0.01, with a domestic flat rolled segment and European segments performing better than expectations. However, it provided weak Q4 guidance for all its reporting segments.
Weak European and North American steel markets do not come as a surprise. What is of concern is the magnitude of expected decline in profitability of the tubular segment and U.S. Steel Europe (USSE). U.S. Steel now expects lower tubular shipments in 4Q due to declining rig counts and lagging imports. Higher levels of imports (more than 50 percent of market share in 3Q) are putting downward pressure on prices. Although we expect oil country tubular goods (OCTG) earnings to improve in 2013, we believe that over the coming years, this highly profitable segment of U.S. Steel will see increasing competition. Higher costs and elevated inventory levels do not bode well for 4Q and 1H13.
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A Multiple Of 6x Makes General Motors A Great Buy For Long-Term Investors

From a growth perspective, General Motors' (GM) results were extremely disappointing. Revenue fell by 2.4% and profits fell by 13%. Most of the losses were propelled by declining revenues from European operations, especially the Opel unit in Germany. Bears point out that Ford (F), facing the same problems in Europe, has managed to post a rise of 17% in EPS. However, one needs to understand that GM has been restructuring its Opel unit under its Interim Vice Chairman Stephen Girsky. Therefore, the costs associated with restructuring have adversely impacted profits. The stock is only trading at a forward price to earnings multiple of 6x.

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This 11.5% Dividend Yielder Is Safe Despite Operating In Volatile Drybulk Shipping Industry

Navios Maritime (NMM) is an international owner and operator of drybulk carriers, formed by Navios Maritime Holdings Inc (NM). NMM reported its earnings last Tuesday. The company topped both the earnings and revenue estimates. This was a surprise, given that dry bulkers have been facing tough times since 2009, when most of them could not predict the future demand and ordered much more vessels than actually required. This led to overcapacity, which in turn brought down the freight rates to ridiculously low levels. NMM offers a dividend yield of 11.5%.
An Update on the Baltic Dry Index (BDI)
BDI is composed of weighted averages of Baltic Capesize Index (BCI), Baltic Handysize Index (BHI), Baltic Panamax Index (BPI) and Baltic Supramax Index (BSI).
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Buy Equinix To Play Growing Demand In Data And Network Traffic

Equinix (EQIX) recently announced that its data center in Hong Kong has been chosen by RTS Realtime Systems Group. Realtime, which is a leader in providing electronic trading software as well as risk management solutions, is in the process of expanding its operations in Asia and has selected Equinix to provide data center solutions. Equinix's data center will serve as RTS's solution to providing trading solutions in the Asia-Pacific region. The data center will be linked to the company's global network which provides market access to over 60 exchanges worldwide. RTS's clients depend on its network for high speed access to various asset classes, and with access to Equinix's data center, its clients can have easy access to major exchanges around the world.
This latest development is another milestone for Equinix, not only because it further cements the long standing strategic relationship with RTS, but also because it further enhances its presence in Asia, a region with tremendous growth potential. Over the last few years, Asia has been a particularly lucrative market for Equinix as it is one of the fastest growing economies in the world and, according to the International Monetary Fund, Asia will continue to be the global growth generator going forward, despite the cut in the recent growth forecast of the region.
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Caterpillar's Woes In China Continue

Over the last two weeks, all news about the Chinese construction sector has been marked with ambiguity. On one hand, Caterpillar's (CAT) CEO Doug Oberhelman was reported saying that his recent visit to China revealed a positive "attitude change" among CAT's customers. On the other hand, CAT's largest competitor in China, Sany Heavy Industry Co, reported a 59% decline in profits and attributed it to slow economic growth in the region.
Competitor's Point of View
Sany
China's largest machinery manufacturing firm according to market cap reported a 59 percent YoY decline in profits and an 18 percent decline in revenues. Net income declined from 1.73 billion Yuan to 714 million Yuan. Revenues fell from 10.85 billion Yuan to 8.9 billion Yuan. The company was wary of the decelerating economic growth in the region. Another sign of the economic slowdown was the fact that accounts receivable jumped up by 83 percent YoY to 20 billion Yuan. The company's excavator sales, its second biggest revenue contributor, plummeted by 27 percent.
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Seadrill's 8.2% Dividend Yield, Potential Price Appreciation Make It A Buy

We maintain our bullish stance on Seadrill (SDRL) based upon its quality of asset base, high dividend yield, attractive contract backlog, and continuous focus on growing fleets. It is highly attractive to dividend growth investors, with a dividend yield of 8.2 percent, in comparison to the industry average of 1.8 percent. The company's recent initiative to relocate its business operations from Norway would bring logistic efficiencies and enable the company to attain more potential customers.
The company's modern fleet is enjoying high demand in the market, after oil exploration companies increased their production with increasing oil prices. As the total rig counts in the Middle East and Africa have increased by 31% and 38% over the course of the last one year, we believe the company has the potential to capitalize on growing energy demand in the coming years.
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Is American Capital Agency's 15.6% Dividend Yield Best Amongst mREITs?

American Capital Agency (AGNC), a U.S. mortgage REITs that is largely followed, disclosed its third quarter performance on October 29, 2012.
The company's net interest income will be negatively affected if the Fed decides to accelerate its bond buying. AGNC has one of the lowest conditional prepayment rates but at the same time most of the company's asset portfolio is invested in fixed rate securities. High exposure to fixed rates securities does pose a threat of a future dividend cut but this risk is with almost every mREIT. AGNC remains one of our most favored agency mortgage REITs, as it has the lowest conditional prepayment rate among its peers. Therefore, we recommend the stock to income-oriented investors for a 15.6% dividend yield.

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Volatile Netflix Is A No Go For Investors

Netflix's (NFLX) shares had plummeted around 16% due to cutting down of the challenging domestic subscription target, from 7 million to 5.4 million for the year. The decline has been offset by unconfirmed rumors of Microsoft (MSFT) looking to buy the company. The current price of $69 is above the consensus mean price target of $65. As the volatility in the stock price continues, we reiterate our earlier recommendation of avoiding NFLX.
In the 10% session after the Q3 earnings release, CEO Reed Hastings said that the company is on track to full brand recovery within a three year period, helped by spending on originals. Free cash flow is expected to be negative for several coming quarters due to funding of originals. It is of importance to know that according to the earnings call transcript, the company does not have rights for syndication, DVD and licensing of original content. Moreover, the CFO David Wells said in the earnings call that original content would be less than 10% of the hours viewed, or maybe less than 5% for next year. This gives rise to the debate of how many subscriptions can be gained through offering the expensive original content.

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Earnings Growth, Dividend Hike Make Us Bullish On BP Plc

We have changed our stance to positive on BP plc (BP) based on its impressive earnings growth of up to 40 percent, dividend increase of 12.5 percent and its current restructuring efforts. Its rising refinery margin, operational efficiencies, plans to increase investment in its upstream business segment and high free cash flow growth in the coming years make it a good stock for value investors. In our opinion, it is expected to increase its production capacity significantly in the fourth quarter after the completion of its ongoing maintenance projects and on the expected start-up of its new lucrative projects. BP has strategically aligned its business operations to cater to the upcoming oil consumption growth of 0.9 million barrels per day in 2013, according to a report by U.S Energy Information Administration. Therefore, we recommend investors to take a long position in the stock.

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Buy Ford: North America To Drive The Stock Higher

Ford (F) reported its earnings yesterday before the market opened. It managed to top earnings estimate but missed revenue expectations, largely due to the continuing problems in the European auto market. The market has developed a new interest in the recent European turnaround strategy announced by Ford's CEO Alan Mulally. Other highlights of the earnings release were a record profit margin of 12% in North America, improved sales in Asia, Africa and China, and the success story of the F-Series truck, which alone accounts for 90% of the total global auto profits made by Ford.

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Windows 8: The Brave And The Bold

The launch of a new Windows is not an ordinary event in the technology world. The Microsoft (MSFT) OS is still the most-used in the world, by a considerable margin. Therefore, any changes or updates have a global impact and significance. Windows 8 is even more significant in this regard. The company is shifting, for the first time, to a touch based interface as compared to its 'mouse' or 'touchpad' interface. Considering that 25% of PC users still use Windows XP, which was released more than a decade ago, it's a big risk. However, the recent shift of computing to handheld and touch-based devices makes this move necessary, to say the least. Many argue that Microsoft has been reactionary, and has delayed its response to the tablet/smartphone boom. For example, only a few months back, it was pushing its WP7 on manufacturers such as Nokia (NOK). Despite the 'uneasy' reaction of most Windows users, Windows 8 is an inevitable evolution, and Microsoft could either board the wagon or become extinct. We have been bullish on Windows 8 for quite some time, and post-launch our conviction has only become stronger. The broad range of partners, high dividend yield, a beautiful OS; all contribute to our buy rating on MSFT.

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Buy Nucor For The Long Term: 3.6% Dividend Yield Is As Solid As Steel

Nucor Corporation (NUE) reported better than expected third quarter earnings as metal margins came out better than what the sell side was expecting. Lower scrap cost was the reason for higher-than-expected margins. However, NUE is expecting Q4'12 earnings to decline sequentially due to high import levels, excess domestic supply, weak economic outlook, and seasonally weak demand in Q4'12.
In addition to declining steel mill profits, NUE is expecting LIFO credit to be approximately $0.05 in the fourth quarter, down from $0.16 in the third quarter. It is also expecting marginally higher start-up costs. The acquisition of Skyline was cash accretive in Q3'12 and is expected to be earnings accretive in Q4'12.
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Despite QE3, Anworth Mortgage's 10% Dividend Yield Is Safe

Anworth Mortgage (ANH) reported below expected third quarter performance on October 25, 2012. Analysts were expecting a consensus mean earnings per share of $0.17, whereas the company reported an EPS figure of $0.15 per share, about 12% below expectations.

The company generated $47 million in interest income during the third quarter of the current year, which was 14% below the interest income that it generated during the third quarter of the previous year. Despite a 5.6% year over year increase in the interest yielding assets, the interest income declined. Much of the decline in interest income was attributed to the decline in asset yields, from 3.15% in the linked quarter to 3.04% at the end of the third quarter. This represents a direct impact of the implementation of the third round of easing conducted by the Fed, where the Fed is buying agency bonds that are fixed rate in nature. Around 21% of Anworth's entire portfolio is invested in such fixed rate mortgage backed securities that the Fed is buying. As a result of Fed bond buying, the prices of these bonds have increased, resulting in a decrease in the yields.

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Procter & Gamble: Buffett Reduced His Stake But Restructuring Efforts On Track

Procter & Gamble (PG) last week reported better than expected results for the first quarter of fiscal year 2013. These results can be viewed as the beginning of a positive momentum in the company's performance. We expect the company to deliver improved results in upcoming quarters as well. Recent quarterly results helped relieve the pressure on the company's CEO who has been criticized for the company's weak financial performance in recent years. However, Warren Buffett's Berkshire Hathaway Inc. (BRK.A) has sold some of its holdings in PG. Buffett has stated that he does not have the answer to the company's earnings woes.

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Buy Rider Systems For Cheap Valuations, Dividends And Cost Cutting Measures

A leader in trucking transportation and logistics, Ryder Systems (R) topped earnings and EPS estimates, but missed revenue targets. It is yet again an example of an industrial that has missed the sales estimate, but made higher than expected profits. This solidifies Qineqt's stance that industrials this year are trimming their cost structures, but have not found enough sales coming their way to provide impressive results on the earnings release. Earlier on, Harley-Davidson (HOG), the manufacturer of stylish motorbikes also missed revenue estimates, but exceeded EPS expectations. Similarly, Caterpillar (CAT), the giant equipment manufacturer, Norfolk Southern (NSC), U.S.-based railroad, Chicago Bridge & Iron (CBI), the engineering & construction company, and several other manufacturers missed sales expectations but exceeded EPS estimates. The positive news for Ryder investors was that the company raised its full year outlook to $3.93-$3.98, from the prior guidance of $3.75-$3.9.

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Why You Need To Buy Valero Energy

As Valero Energy (VLO) has posted earnings per share of $1.91 - beating the street estimates by $0.18 - we reiterate our bullish stance on the stock. VLO is mainly attractive to investors because of its cheap valuations. It is currently trading at a forward price to earnings of 6x - at a significant discount when compared to industry average of 7.2x. Its dividend yield is 2.4 percent, which is greater than its peers' average of 1.9 percent. In our opinion, Valero's St. Charles and Port Arthur hydrocracker projects are expected to be completed sometime next year, enabling the company to bring enhancement in its profitability situation.

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Solazyme: In The Wrong Place At The Wrong Time

We recommend investors not to take any position in Solazyme (SZYM) due to its continuous deteriorating profitability, lack of product commercialization, operational inefficiencies and inability to bring growth. Its business model of producing oil through transformation of food, plants and animal fats is a matter of concern for investors. The company's lack of SKUs in its skin care segment, limited distribution network and heavy third party dependence will render its revenue contribution stagnant going forward. Solazyme's financial problems, its inability to design a worthwhile manufacturing facility, and the delay in regulatory approval for the sale of microalgae would trouble the company further.

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The Fundamentals of Investing in the Mutual Funds

Obviously you must have some sort of financial plans for your future.  Even if you do not have any plans there must be some money that you need in the future so that you can meet your growing financial needs.  Most of the times the needs are not met with simple of savings account and therefore you need further investments.  The most common type and popular type of investment are the future mutual funds.  There are various types of mutual funds and the different types such that you can look at and pick up which you think is the best one for you.  Before you invest in the mutual funds you have to keep one thing in mind and that is that you have to understand your mutual funds investments.  In order to know about the mutual fund’s investments you will have to know everything about the company and what does it do.  If you do not know anything about a company in which you are interested to invest your money then you cannot hope for better returns.  This is because you will never know whether the company’s product is strong enough to survive in the future and give you better terms.

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.

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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.

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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.

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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.

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The Advantages of Stock Investment

If you do not want to earn through a job that requires you to work very long hours then you can always go and invest in the stock market and earn an income through investing in the stocks to buy now.  There are a lot of advantages of stock investment because of which many people are getting inclined towards it and earning money.  Where there are advantages of stock investment is there are also disadvantages of it.  However if you manage the stock investment with intelligence then you can minimize the disadvantages and get the maximum out of the advantages of the stock market.

The very first advantage of the stock market investment is the flexibility that it offers to everybody who was trying to invest in it and the stocks to buy now.  Firstly you do not have to work long hours that you will have to work in a regular job.  You will select the time of investing in the stock market and managing it according to your ease and schedule and convenience.  There is no pressure and you will be the boss of yourself.  This will take out the stress and anxiety from many people’s lives which are associated with long hours of work.  You will feel extremely easy when you will start investing in the stock market because you will not have to sit in one chair for long hours and work on the same boring thing every day.

Top five tips to buy best dividend paying stocks

Summary

Buying best dividend paying stocks is always considered as a challenging task for researchers/investors. Recently we have seen a lot of shocking trends in the worldwide stock market. There are many high dividend paying stocks around the international stock market but as a researcher you need to choose the best stock very carefully.

Look at the whole scenario of the stock market 

Firstly you need to look at the whole scenario of the international stock market very vigilantly as well as carefully. Let me clear one very important thing before you that stock market is a fluctuating market. Everyday you will see the fluctuations and changing trends in stocks to buy. You will see how the gold prices are going up and down in the market. You will also find how the oil and gasoline worth is rapidly changing. You will also come across that how the penny stocks worth is fluctuation. So it has been a changing scenario in the stock market. No one could predict exactly about the stock market changing trends. 

Investment in Stocks Means Worthwhile For Investors

Summary

Investors should look into the key factors which play a vital role in the selection of the stocks to buy now. What are the most valuable and compatible stocks to buy for you? You need to make an in-depth analysis of the whole stock market as quickly as possible. There are plenty of stock marketing companies and service providers around the world today.

What you need to do for finding a top rated company?

Don’t forget that finding company in any stock market is not easy. Therefore if you want to take hold of unique stocks, you need to patch up with top rated stock marketing companies. These are available on the internet and are offering the best dividend paying stocks to their customers as well as shareholders. The stock market exists very heavily in China, Japan, United States, Canada and several other countries. The good news for investors and shareholders is that wherever they are residing they do not need to bother themselves because best stock marketing companies are based in your own areas, regions and countries at the moment. All you need to do is enhance your web research a bit so that you can find the best results within a shorter time span.

It Is Better For You To Invest In High Yielding Stocks

Every business needs investment either it is for the short term or long term. Therefore the goal of every businessman or investor is make instant money. Stock investment has become a lucrative job for the majority of the investors around the world at the moment. Investment in stock market can produce higher returns than average yield. All you need to do is buy top stocks so as to cultivate ample amount of benefits. As a matter of fact, you have several options for choosing the stocks in the market.

High return stocks

Obviously high return stocks offer huge benefits to the investors than the average stocks. This is the reason why finding these kinds of stocks in the market is not easy. There is usually a tendency of more risk involved in high return stocks than the average return stocks. Penny stock is one of the latest examples of this. So you should wait for an opportunity where there is a less risk factor involved. You should always find and patch up with those companies that have shown their consistent performance and growth during the last ten years. It is a good reason to invest in.

Dividend stocks

There is another unique option available for you, which is called as high yield dividend stocks. Generally speaking, a dividend is reckoned as a fixed amount. This fixed amount is paid per share. Dividend can be very high as well as low depending upon the amount of investment in stocks. The more you find and invest in the best dividend paying stocks the more you have a chance to generate huge returns.

While looking into good dividend investment you should carefully examine the company’s cash flow and past performance. In addition, you should find the viability as well as growth of the stock company. Further you should discover a factor that how much company is debt oriented. If a company has lower level of debts, then it is obviously a good sign to invest.

Other types of investments

In addition to stock market, there are some other valuable sources for the people to invest their money for generating ample returns consistently. One of the most useful ways for investment is Real Estate Investment Trusts. They have reaped dividends in between 6% to 10%. Before investing the money in stock trading you should conduct a thorough research on stock trading on the internet. You should evaluate the companies through your in-depth research. You should stay cool as cucumber throughout the investigation and scrutiny.

Invest in those stocks which are reliable, steadfast and high yielding. Don’t choose the shortcuts. Rather you should always choose the right path for a long term investment plan. The reason is obvious that if you choose the long term investment with a systematic research you can reap huge returns shortly. It is better for you to find the best stocks to buy.