Sysco dominates its industry of restaurant supply around the country, but it’s finding out its customers aren’t very hungry. See how David Mamos rates Sysco. Read more...
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Buy, Sell or Hold: Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is a Mining Play with a Major Upside
Sometimes the market offers investors a rare chance to buy shares of a great company on a dip. That's precisely the opportunity we're getting right now with Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX).
The current market volatility is giving investors with an eye toward long-term investments a great chance to buy shares in a world-class company.
FCX is one of the best-run global mining companies and a great way to gain exposure to gold and copper. So it's time to "Buy" Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) (**).
And if scooping up a top-notch commodities play on a pullback isn't reason enough, here are six other reasons to buy FCX.
The current market volatility is giving investors with an eye toward long-term investments a great chance to buy shares in a world-class company.
FCX is one of the best-run global mining companies and a great way to gain exposure to gold and copper. So it's time to "Buy" Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) (**).
And if scooping up a top-notch commodities play on a pullback isn't reason enough, here are six other reasons to buy FCX.
Buy, Sell or Hold: The Libya Crisis and Record Oil Prices Will Ground United Continental Holdings Inc. (Nasdaq: UAL)
The growing Middle East unrest - and the impact that the turmoil and the resulting uncertainty is having on global oil prices - is clobbering the airline sector's bottom line. The crisis is far from over, and the implications of the higher fuel costs have not yet been fully discounted by the market.
The bottom line: It's time to sell United Continental Holdings Inc. (Nasdaq: UAL) - before it breaks down to new levels of weakness (**).
The bottom line: It's time to sell United Continental Holdings Inc. (Nasdaq: UAL) - before it breaks down to new levels of weakness (**).
Buy Sell Hold: Alcoa Inc. (NYSE: AA) is a Turnaround Play Worthy of Long-Term Investment
While U.S. unemployment is still high and showing no real signs of receding, there are a few indications that the economy is slowly edging back toward a pattern of sustained growth.
That's important because smart investors are always looking for a turnaround play - that is, a situation that has changed the underlying market dynamics surrounding it.
In today's case, we look at a company - Alcoa Inc. (NYSE: AA) - that just last week reported its best quarterly results since the third quarter of 2008.
Alcoa in the last 10 quarters laid-off 20,000 employees as management attacked its cost structure by closing facilities around the world. And today it is a much leaner company and better prepared for the future than it was in the fall of 2008.
That's important because smart investors are always looking for a turnaround play - that is, a situation that has changed the underlying market dynamics surrounding it.
In today's case, we look at a company - Alcoa Inc. (NYSE: AA) - that just last week reported its best quarterly results since the third quarter of 2008.
Alcoa in the last 10 quarters laid-off 20,000 employees as management attacked its cost structure by closing facilities around the world. And today it is a much leaner company and better prepared for the future than it was in the fall of 2008.
Buy, Sell or Hold: Brace for Inflation with Kraft Foods Inc. (NYSE: KFT)
Growing up in the 1970s, I remember seeing fears of food inflation affect the life around me.
My parents purchased a small farm and put in an
organic garden so that we would always have food. My mom was always canning food and my father was riding the tractor. They had grown up in the 1930s and remembered the key to surviving tough economic times was to be able to feed yourself when you needed to.
Today, we have a generation of fast food buyers. But the problem with that diet - besides its impact on your health - is that it is not as cheap as it once was. People will have to change their spending habits if they're going to cope with inflation.
My parents purchased a small farm and put in an
organic garden so that we would always have food. My mom was always canning food and my father was riding the tractor. They had grown up in the 1930s and remembered the key to surviving tough economic times was to be able to feed yourself when you needed to.
Today, we have a generation of fast food buyers. But the problem with that diet - besides its impact on your health - is that it is not as cheap as it once was. People will have to change their spending habits if they're going to cope with inflation.
Buy, Sell or Hold: Six Reasons Claude Resources Inc. (AMEX: CGR) is a 'Buy'
When I was doing due diligence for my investors, I remember the CEO of an oil and gas company once telling me: "If you want to find oil, it's easier if you drill where oil has already been found."
This rule carries with it a lot of truth about geology. However, it works with gold resources just as much as it does with oil. It's always easier to find gold, where it has already been discovered.
In Canada, the most prolific gold mining district is the Red Lakes District. If you want to find gold, it helps to have ownership in a Red Lake property. It is the heart of high volume gold production in Canada.
And Claude Resources Inc. (AMEX: CGR) is one of the few companies to own one of the historic mines in that district. The Madsen mine is still fully permitted with a mill ready to operate again.
This rule carries with it a lot of truth about geology. However, it works with gold resources just as much as it does with oil. It's always easier to find gold, where it has already been discovered.
In Canada, the most prolific gold mining district is the Red Lakes District. If you want to find gold, it helps to have ownership in a Red Lake property. It is the heart of high volume gold production in Canada.
And Claude Resources Inc. (AMEX: CGR) is one of the few companies to own one of the historic mines in that district. The Madsen mine is still fully permitted with a mill ready to operate again.
Buy, Sell or Hold Pairs Trade: Why it's Time to Sell Fiat SpA (Pink ADR: FIATY) and Buy Ford Motor Co. (NYSE: F)
With all that's happening in Europe right now - not to mention economic expectations and consumer-spending trends both overseas and here in the United States - I find that we have an interesting "pairs trade" available to us.
And the trade that I'm talking about is to have investors sell Fiat SpA (Pink ADR: FIATY) and buy Ford Motor Co. (NYSE: F).
The inspiration for this trade stems from an experience I had as a teenager.
Indeed, it's been more than 25 years since the story I'm about to relate took place, but the memories are so vivid that they're never far from my thoughts.
Neither are the lessons I learned - which is fortuitous, since those lessons are especially applicable in today's unforgiving financial markets.
And the trade that I'm talking about is to have investors sell Fiat SpA (Pink ADR: FIATY) and buy Ford Motor Co. (NYSE: F).
The inspiration for this trade stems from an experience I had as a teenager.
Indeed, it's been more than 25 years since the story I'm about to relate took place, but the memories are so vivid that they're never far from my thoughts.
Neither are the lessons I learned - which is fortuitous, since those lessons are especially applicable in today's unforgiving financial markets.
Buy, Sell or Hold: Six Reasons That VMware Inc. (NYSE: VMW) Shares Are Poised for a Breakout
I've always been a hands-on kind of person. And that includes information-technology (IT) projects. While it has been a number of years since I was involved in a serious IT project - with most of that work having been done before I started and ran my hedge fund - I have worked on Website projects for a number of S&P 500 companies in the past.
I am comfortable around large IT projects, so I was a bit shocked when I realized how much VMware Inc. (NYSE: VMW) had changed the basic structure of the game while I was gone. That point was driven home when I volunteered to head a major IT project for a local city; it turned into a project-manager job that has involved making director-level decisions.
It didn't take long for me to realize that the city needed to deep-six its computer system and start over: Hardware from the late 1990s and early 2000s just won't cut it in a world that's on the doorstep of 2011. The key to this future is the virtualization of operating systems. This virtualized operating system also serves as a basic building block of the new "cloud-computing" technology that everyone seems to be talking about in the land of IT.
I am comfortable around large IT projects, so I was a bit shocked when I realized how much VMware Inc. (NYSE: VMW) had changed the basic structure of the game while I was gone. That point was driven home when I volunteered to head a major IT project for a local city; it turned into a project-manager job that has involved making director-level decisions.
It didn't take long for me to realize that the city needed to deep-six its computer system and start over: Hardware from the late 1990s and early 2000s just won't cut it in a world that's on the doorstep of 2011. The key to this future is the virtualization of operating systems. This virtualized operating system also serves as a basic building block of the new "cloud-computing" technology that everyone seems to be talking about in the land of IT.
Buy, Sell or Hold: A Rebound is Sprouting for Monsanto Co. (NYSE: MON)
The explosive move up in prices among most crops futures over the past several months has been nothing short of spectacular. The market today is reminiscent of the 1970s with a weak U.S. dollar is playing havoc with world exports.
Indeed, the drop in the dollar's value has investors and speculators seeking physical commodities to park their funds in. This has caused the prices to expand in the grains sector, and when next year rolls around, you can expect that seed manufacturers will have priced next year's crop accordingly. So while the trading pits and the farmers are all banking money now, the next round of inflation is already being calculated into next year's margins.
And we can use those inflationary expectations to grow some profits of our own by investing in Monsanto Co. (NYSE: MON) - one of the world's largest seed producers.
Think of it as a "picks-and-shovels" play to capitalize on all of the farmers rushing to cash in on surging commodities prices.
Indeed, the drop in the dollar's value has investors and speculators seeking physical commodities to park their funds in. This has caused the prices to expand in the grains sector, and when next year rolls around, you can expect that seed manufacturers will have priced next year's crop accordingly. So while the trading pits and the farmers are all banking money now, the next round of inflation is already being calculated into next year's margins.
And we can use those inflationary expectations to grow some profits of our own by investing in Monsanto Co. (NYSE: MON) - one of the world's largest seed producers.
Think of it as a "picks-and-shovels" play to capitalize on all of the farmers rushing to cash in on surging commodities prices.
Buy, Sell or Hold: It's Time to Park Harley-Davidson Inc. (NYSE: HOG)
Harley-Davidson Inc. (NYSE: HOG) may well be the ultimate U.S. corporate icon.
The company's motorcycles are certainly American cultural icons: Big, squat, slathered in chrome, they're essentially functional pieces of fine art. Each motorcycle emits a deep, staccato bark at idle, a signature sound that prompted aficionados to christen Harley bikes as "hogs."
The fact that "Hogs" have been owned and ridden by such celebrities as Elvis Presley, Malcolm Forbes Sr., Jay Leno, Mickey Rourke, Tina Turner, Arnold Schwarzenegger and Elizabeth Taylor helped imbue the Harley brand with an aura of desirability and exclusivity.
Little wonder the company has historically generated 5% of its revenue just from the licensing of its logo alone.
The company's motorcycles are certainly American cultural icons: Big, squat, slathered in chrome, they're essentially functional pieces of fine art. Each motorcycle emits a deep, staccato bark at idle, a signature sound that prompted aficionados to christen Harley bikes as "hogs."
The fact that "Hogs" have been owned and ridden by such celebrities as Elvis Presley, Malcolm Forbes Sr., Jay Leno, Mickey Rourke, Tina Turner, Arnold Schwarzenegger and Elizabeth Taylor helped imbue the Harley brand with an aura of desirability and exclusivity.
Little wonder the company has historically generated 5% of its revenue just from the licensing of its logo alone.
Buy, Sell or Hold: Hewlett-Packard Co. (NYSE: HPQ) – It's Time to Sell This High-Tech Stalwart
Now's not the time to own Hewlett-Packard Co. (NYSE: HPQ). Long one of the bluest of blue chips in the U.S. high-tech sector, H-P has been in the spotlight and under the gun since its early August ouster of Chief Executive Officer Mark Hurd. And while Hurd's unceremonious resignation following an internal sexual harassment investigation […]
Buy, Sell or Hold: Exelon Corp. (NYSE: EXC) Can Energize Your Portfolio with a High-Powered Dividend
With the yield on U.S. Treasury bonds sitting well below 3%, income investors have to get creative. Those seeking dividend-based cash flow must to be willing to look in less traditional places to find a safe yield. And what could be less traditional than nuclear power?
After the Three Mile Island disaster of 1979, nuclear energy became the forgotten carbon-free source of electricity. However, a small renaissance in nuclear power is happening as we speak, and Exelon Corp. (NYSE: EXC) gives us a great tool to capture the upside from this renaissance - with some solid income, to boot.
Exelon is the largest operator of nuclear power plants in the United States, with 10 plants operating a total of 17 individual reactors. It's the third-largest operator of nuclear plants in the world, and it has a massive barrier to entry around its niche market.
After the Three Mile Island disaster of 1979, nuclear energy became the forgotten carbon-free source of electricity. However, a small renaissance in nuclear power is happening as we speak, and Exelon Corp. (NYSE: EXC) gives us a great tool to capture the upside from this renaissance - with some solid income, to boot.
Exelon is the largest operator of nuclear power plants in the United States, with 10 plants operating a total of 17 individual reactors. It's the third-largest operator of nuclear plants in the world, and it has a massive barrier to entry around its niche market.
Buy, Sell or Hold: Despite Challenges, Innovation Will Provide Long-Term Boost to Software Leader Microsoft Corp. (Nasdaq: MSFT)
Thanks to some shrewd maneuvering with its first major software contract in the early 1980s, Microsoft Corp. (Nasdaq: MSFT) built itself into a tech giant and software powerhouse. But the global financial crisis and increasing competition are eroding that longstanding dominance.
There's no doubt the company has made successful strategic decisions for decades.
Founder and Chairman William H. Gates III established Microsoft in 1975 and made it the worldwide leader in software products and services, including operating systems for servers, personal computers and intelligent devices, server applications, business solutions applications, software development tools and video games. It offers product support and consulting services on its impressive array of products, including its widely used Windows operating systems and Microsoft Office software suite.
There's no doubt the company has made successful strategic decisions for decades.
Founder and Chairman William H. Gates III established Microsoft in 1975 and made it the worldwide leader in software products and services, including operating systems for servers, personal computers and intelligent devices, server applications, business solutions applications, software development tools and video games. It offers product support and consulting services on its impressive array of products, including its widely used Windows operating systems and Microsoft Office software suite.
Buy, Sell or Hold: BCE Inc. (NYSE: BCE) Has Canada Covered
The market right now is torn between data that suggests the U.S. is waning and reports that many companies are increasing guidance and beating earnings estimates.
This has created a lot of volatility, and if you already have enough strong growth plays in your portfolio, adding some large, established companies with stable cashflows and hefty dividend yields could ease some of the anxiety you may be feeling.
Such an approach in my opinion is superior to bonds, since bond yields are just too low at these levels. That means you actually risk capital losses if they go up. In addition, safe dividends paid by leading companies are higher than bond yields. And unlike bonds, big companies usually can adjust prices in accordance with inflation.
There are a lot of companies for an investor to choose from, but BCE Inc. (NYSE: BCE) jumps out at me immediately. It is a dominant, well-managed company, and it has strong upside potential.
This has created a lot of volatility, and if you already have enough strong growth plays in your portfolio, adding some large, established companies with stable cashflows and hefty dividend yields could ease some of the anxiety you may be feeling.
Such an approach in my opinion is superior to bonds, since bond yields are just too low at these levels. That means you actually risk capital losses if they go up. In addition, safe dividends paid by leading companies are higher than bond yields. And unlike bonds, big companies usually can adjust prices in accordance with inflation.
There are a lot of companies for an investor to choose from, but BCE Inc. (NYSE: BCE) jumps out at me immediately. It is a dominant, well-managed company, and it has strong upside potential.
Buy, Sell or Hold: The Clorox Co. (NYSE:CLX) Is Cleaning Up
The Clorox Co. (NYSE:CLX) on Thursday reported net earnings of $171 million on sales of $1.52 billion for the fourth quarter of fiscal year 2010 ended June 30, compared to net earnings of $170 million on net sales of $1.5 billion the year prior.
This continued the company's trend of improvement. But more importantly, the bulk of Clorox's profit and margin growth came from its international unit, and the firm projected an expansion in earnings per share of at least 10% to 14% for next fiscal year.
Boring is beautiful when you're dealing with consumer staples, since share prices improve with incremental increases in sales and margins. In Clorox's case, this has meant taking advantage of low rates and dependable cashflow to finance expansion plans. But the good news is that the high financial leverage results in an exorbitant return on equity.
This continued the company's trend of improvement. But more importantly, the bulk of Clorox's profit and margin growth came from its international unit, and the firm projected an expansion in earnings per share of at least 10% to 14% for next fiscal year.
Boring is beautiful when you're dealing with consumer staples, since share prices improve with incremental increases in sales and margins. In Clorox's case, this has meant taking advantage of low rates and dependable cashflow to finance expansion plans. But the good news is that the high financial leverage results in an exorbitant return on equity.
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