With shares of General Electric (NYSE:GE) trading at around $23.52, is GE an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock�� Movement
GE is a unique story. For instance, many companies throughout the broader market saw consistently increasing revenue from 2009 to 2011 and then suffered revenue declines in 2012. GE, on the other hand, saw revenue declines from 2009 to 2011 and then increasing revenue in 2012. Does this make GE one of the best plays going forward? Does it also make GE one of the safest plays if the market suffers a steep correction at some point over the next few years?
There are no definitive answers to the two questions above. However, GE is certainly headed in the right direction. What wasn�� mentioned above is that EPS has improved on an annual basis for three consecutive years. EPS also improved 16.20 percent last quarter on a year-over-year basis. It’s well known that GE focuses on the bottom line. This should be good news for investors going forward.
Best Insurance Stocks For 2015: Fomento Economico Mexicano SAB de CV (FMX)
Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), incorporated on May 30, 1936, is a holding company. The Company conducts its operations through principal holding companies, each of which it refers to as a principal sub-holding company. These companies are Coca-Cola FEMSA, S.A.B. de C.V. (Coca-Cola FEMSA), which engages in the production, distribution and marketing of soft drinks, and FEMSA Comercio, S.A. de C.V. (FEMSA Comercio), which operates convenience stores. The Company�� convenience store chain OXXO operated a total of 7,492 stores as of March 31, 2010. Compania Internacional de Bebidas, S.A. de C.V. (CIBSA) owns a 53.7% interest in Coca-Cola FEMSA. On April 30, 2010, FEMSA announced the closing of the transaction, pursuant to which FEMSA agreed to exchange 100% of its beer operations conducted by FEMSA Cerveza for a 20% economic interest in the Heineken Group. In February 2009, Coca-Cola FEMSA acquired with The Coca-Cola Company the Brisa bottled water business in Colombia from Bavaria, a subsidiary of SABMiller. Coca-Cola FEMSA acquired the production assets and the rights to distribute in the territory, and The Coca-Cola Company obtained the Brisa brand.
Coca-Cola FEMSA, S.A.B. de C.V.
Coca-Cola FEMSA is a bottler of Coca-Cola trademark beverages. Coca-Cola FEMSA operates in various territories, including Mexico, a substantial portion of central Mexico (including Mexico City and the states of Michoacan and Guanajuato) and southeast Mexico (including the Gulf region); Central America, including Guatemala (Guatemala City and surrounding areas), Nicaragua (nationwide), Costa Rica (nationwide) and Panama (nationwide); Colombia; Venezuela; Argentina, including Buenos Aires and surrounding areas, and Brazil, including the area of greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do Sul, the state of Minas Gerais and part of the state of Goias.
Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages, own brands and b! rands licensed from the Company. The Coca-Cola trademark beverages include sparkling beverages (colas and flavored sparkling beverages), water, and still beverages (including juice drinks, ready-to-drink teas and isotonics). Out of the more than 100 brands and line extensions of beverages sold and distributed by Coca-Cola FEMSA, its most important brand, Coca-Cola, together with its line extensions, Coca-Cola light, Coca-Cola Zero and Coca-Cola light caffeine free, accounted for 61.4% of total sales volume during the year ended December 31, 2009. Coca-Cola FEMSA�� next largest brands, Ciel (a water brand from Mexico), Fanta (and its line extensions), Sprite (and its line extensions), ValleFrut and Hit, accounted for 10.5%, 5.8%, 2.6%, 1.5% and 1.3%, respectively, of total sales volume in 2009. Coca-Cola FEMSA uses the term line extensions to refer to the different flavors in which it offers its brands.
Coca-Cola FEMSA produces, markets and distributes Coca-Cola trademark beverages in each of its territories in containers authorized by The Coca-Cola Company, which consist of a variety of returnable and non-returnable presentations in the form of glass bottles, cans and plastic bottles made of polyethylene terephtalate (PET). Coca-Cola FEMSA uses the term presentation to refer to the packaging unit in which it sells its products. Presentation sizes for its Coca-Cola trademark beverages range from a 6.5-ounce personal size to a 3-liter multiple serving size. For all of its products excluding water, Coca-Cola FEMSA considers a multiple serving size as equal toor larger than one liter. In addition, it sells some Coca-Cola trademark beverage syrups in containers designed for soda fountain use, which it refers to as fountain. It also sells bottled water products in bulk sizes, which refers to presentations equal to or larger than five liters, which have a much lower average price per unit case than its other beverage products.
In Mexico, Coca-Cola FEMSA�� product portfolio consis! ts of Coc! a-Cola trademark beverages, and includes Mundet trademark beverages licensed from FEMSA in some Mexican territories. Coca-Cola FEMSA�� product sales in Latincentro consist predominantly of Coca-Cola trademark beverages. Per capita consumption of its sparkling beverages products in Colombia and Central America was 92 and 146 eight-ounce servings, respectively, in 2009. Its product portfolio in Venezuela consists of Coca-Cola trademark beverages. Sparkling beverages per capita consumption of its products in Venezuela was 174 eight-ounce servings during 2009. Coca-Cola FEMSA�� product portfolio in Mercosur consists mainly of Coca-Cola trademark beverages, and the Kaiser beer brand in Brazil, which Coca-Cola FEMSA sells and distributes on behalf of FEMSA Cerveza. Sparkling beverages per capita consumption of its products in Brazil and Argentina was 214 and 359 eight-ounce servings, respectively, in 2009.
The Company competes with Pepsi Beverage Company, Grupo Embotelladores Unidos, S.A.B. de C.V., Grupo Jumex, Groupe Danone, Cadbury Schweppes, Big Cola, Consorcio AGA, S.A. de C.V., Postobon, Florida Ice and Farm Co. S.A., Cerveceria Nacional, S.A., Pepsi-Cola Venezuela, C.A., AmBev and Quilmes Industrial S.A.
FEMSA Comercio, S.A. de C.V.
FEMSA Comercio operates a chain of convenience stores in Mexico, under the trade name OXXO. OXXO stores are concentrated in the northern part of Mexico, but also have a presence in central Mexico and the Gulf coast. FEMSA Comercio is the largest single customer of FEMSA Cerveza and of the Coca-Cola system in Mexico. During 2009, a typical OXXO store carried 1,954 different store keeping units (SKUs) in 31 main product categories.
The Company competes with 7-Eleven, Super Extra, Super City, Circle-K and AM/PM.
Advisors' Opinion:- [By Robert Martin]
South Africa, China, Mexico and Brazil collectively make up 68% of ECON�� holdings. The top three holdings are Naspers LTD (NPSNY) at 10%, AmBev (ABV) at 8% and FEMSA (FMX) at 5.6%.
Best Safest Stocks To Own Right Now: Mastercard Incorporated(MA)
MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers? cheque programs. Its payment solutions include payment programs, marketing, product development, technology, processing, and consulting and information services. The company provides transaction processing services comprising transaction switching, which include authorization, clearing, and settlement; connectivity services, such as network access, equipment, and the transmission of authorization and settlement messages; and other payment-related services consisting of products used to prevent or detect fraudulent transactions, cardholder services, professional consulting and research services, compliance and penalty, account and transaction enhancement services, holograms, and publication services. MasterCard Incor porated manages and licenses payment card brands, including MasterCard, MasterCard Electronic, Maestro, and Cirrus. The company?s payment programs, which are facilitated through its brands, include consumer credit, debit and prepaid programs, commercial payment solutions, and contactless payment solutions. It serves approximately 22,000 financial institutions. The company was founded in 1966 and is headquartered in Purchase, New York.
Advisors' Opinion:- [By Andy Obermueller]
The magazine examined some large companies as the drivers in this new technological push, which hinges largely on the continued adoption of portable devices, like cellphones, that can be used much like a credit or debit card. Its winners are Google (Nasdaq: GOOG) because of its Google Wallet initiative, which I was among the first to cover; eBay's (Nasdaq: EBAY) PayPal; Visa (NYSE: V); MasterCard (NYSE: MA); Apple (Nasdaq: AAPL) and Facebook (Nasdaq: FB).
- [By Dan Caplinger]
2. A simple savings account
Savings accounts aren't popular among financial institutions because they aren't big revenue generators. The profits from prepaid cards come from merchant charges that Visa (NYSE: V ) and MasterCard (NYSE: MA ) collect, keeping a portion and giving the rest to card-issuing institutions. That's likely where SpendSmart expects to get the money to pay Bieber's $3.75 million endorsement fee. - [By Sital S. Patel]
��f you look at Visa, MasterCard Inc. (MA) �and American Express Company (AXP) �, they are basically drive by the transactions and don�� live off the balance sheet,��said Ellison. ��f you look at the (banking) industry it�� kind of stale, the business model is not evolving.��
Best Safest Stocks To Own Right Now: Lojas Renner SA (LREN3)
Lojas Renner SA is a Brazil- based company primarily involved in the operation of department stores. The Company divides its business into two segments. The Retail segment is engaged in sale of women's, men's and children's apparels, underwear and shoes, as well as sportswear and other department stores' articles in the domestic market. The Company also sells household articles, bedding and bath items, furniture and decoration articles. The Financial products segment is involved in the intermediation of financial services, including brokerage of personal loans, sales financing, brokerage of insurance and bonds, and credit card processing, among others. The Company operates through a numerous subsidiaries, including Dromegon Participacoes Ltda, Renner Administradora de Cartoes de Credito Ltda, Renner Empreendimentos Ltda and Maxmix Comercial Ltda. Advisors' Opinion:- [By Ney Hayashi]
Anhanguera Educacional Participacoes SA (AEDU3) tumbled after Brazil�� antitrust regulator signaled it may limit the education company�� merger with competitor Kroton Educacional SA. (KROT3) Lojas Renner SA (LREN3) led retailers higher after a report showed Brazil�� industrial production expanded faster than expected in October, easing concern that growth is faltering.
Best Safest Stocks To Own Right Now: Virco Manufacturing Corporation(VIRC)
Virco Mfg. Corporation engages in the design, production, and distribution of furniture for the commercial and education markets in the United States. The company offers seating products, including cantilever chairs, tablet arm chairs, rockers, hard plastic seats, backrests, work surfaces, task chairs, classroom chairs, stack chairs, folding chairs, upholstered stack chairs, plastic stack chairs, and upholstered ergonomic chairs, as well as provides various seating product for students in college, university, other adult education settings, and on high school campuses. It also offers folding and banquet tables, activity tables, office tables, computer tables, and mobile tables, as well as table products for working and learning environments, seminars, and conferences; and computer furniture, including keyboard mouse trays, CPU holders, support columns, desks and workstations, and specialty tables and other products for computing applications. In addition, the company provi des chair desks, combo units, teacher desks, and tablet arm units, as well as a collection returns and credenzas. Further, it offers administrative office furniture, such as desks, returns, and bookcases; laboratory furniture, including steel-based science tables, table bases, lab stools, and steel foot-rings for biology and chemistry classes, and other school and college based lab settings; and mobile furniture comprising mobile tables for school cafeterias and mobile chairs for school settings and offices, as well as provides handling and storage equipment and manufactures stackable storage trucks. The company?s brand portfolio primarily includes ZUMA, ZUMAfrd, Ph.D., I.Q. Virtuoso, Classic Series, Martest 21, Lunada, Plateau, Core-a-Gator, Future Access, Sigma, Metaphor, Telos, TEXT, and Parameter. It also serves convention centers and arenas, hospitality providers, government facilities, and places of worship. Virco Mfg. Corporation founded in 1950 and is based in Torra nce, California.
Advisors' Opinion:- [By John Udovich]
Small cap office furniture stock Steelcase Inc (NYSE: SCS) jumped 11.66% after beating earnings expectations, meaning it might be time to take a closer look at the stock along with potential office or commercial furniture stock peers like�HNI Corp (NYSE: HNI), Knoll Inc (NYSE: KNL) and Virco Mfg. Corporation (NASDAQ: VIRC). After all, the performance of any company selling office or commercial furniture would tend to give some insights into the office or employment markets.
Best Safest Stocks To Own Right Now: Consumer Staples Select Sector SPDR (XLP)
Consumer Staples Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond to the price and yield performance of the Consumer Staples Select Sector of the S&P 500 Index (the Index). The Index includes companies that are primarily involved in the development and production of consumer products that cover food and drug retailing, beverages, food products, tobacco, household products and personal products.
The Fund utilizes a passive or indexing investment approach to invest in a portfolio of stocks that seek to replicate the Index. The Fund�� investment advisor is SSgA Funds Management, Inc.
Advisors' Opinion:- [By Ben Levisohn]
The Energy Select Sector SPDR ETF (XLE) has gained 1.5% to $82.34 today, by far the best performance of any sector in the S&P 500. It’s lost 0.1% in August, but that too counts as a victory when every other sector has lost between the Materials Select Sector SPDR ETF’s (XLB) 0.2% loss and the Consumer Staples Select Sector SPDR’s (XLP) 5% drop. The S&P 500 has fallen 2.9%.
- [By Jon C. Ogg]
4. Cyclical stocks outperform defensive stocks – This puts consumer discretionary, energy, financials, industrials, technology and materials all doing better than consumer staples, healthcare, telecom, and utilities. Doll also prefers a free cash flow yield to dividend yield and dividend growth over dividend yield.
ETF Recommendation(s): Financial Select Sector SPDR (NYSEArca: XLF), Technology Select Sector SPDR (NYSEArca: XLK), Market Vectors Oil Services ETF (NYSEArca: OIH)… Avoid Consumer Staples Select Sector SPDR (NYSEArca: XLP) and Utilities Select Sector SPDR (NYSEArca: XLU).5. Dividends, stock buy-backs, capex, and M&A all increase at a double-digit rate – This is led by a lot of cash flow, underleveraged balance sheets, and possible great places to use cash. The argument for higher cap-ex is as follows: “Pent-up demand and aging of plant, equipment and technology argue for increases in those key areas.”
Best Safest Stocks To Own Right Now: Midstates Petroleum Company Inc (MPO)
Midstates Petroleum Company, Inc. is an independent exploration and production company. The Company�� areas of operation include Pine Prairie, South Bearhead Creek/Oretta, West Gordon and North Cowards Gully. Its Upper Gulf Coast Tertiary trend extends from south Texas to Mississippi across its operating areas in central Louisiana. As of December 31, 2011, it had accumulated approximately 77,100 net acres in the trend. As of December 31, 2011, its development operations are focused in the Wilcox interval of the trend. The Company�� business is conducted through Midstates Petroleum Company LLC, as a direct, wholly owned subsidiary. In September 2012, the Company and its subsidiary acquired all of Eagle Energy Production, LLC�� producing properties as well as their developed and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma and Kansas.
As of December 31, 2011, it drilled 57 gross wells in the trend, approximately 93% of. During the year ended December 31, 2011, its average daily production were 7,499 barrels of oil equivalent per day. As of December 31, 2011, it had a total of 974 gross vertical drilling locations, including 115 related to acreage under option, in the trend. As of December 31, 2011, the Company�� properties included approximately 92 gross active producing wells, 95% of, which it operate, and in which it held an average working interest of approximately 99% across its 77,100 net acre leasehold. During March 31, 2012, the Company continued its drilling program, spudding 14 wells, of which nine are producing, three are being drilled and two are waiting to be completed. As of December 331, 2011, it averaged daily production is approximately 9,000 barrels of oil equivalent per day.
Pine Prairie
The Company�� properties in the Pine Prairie area represented 46% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 3,793 net barrels of oil equ! ivalent per day, consisting of 2,143 barrels of oil, 565 barrels of natural gas liquidations (NGLs) and 6,508 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 92.2% and 68.9%, respectively, on its acreage in Pine Prairie area. The Company has an additional 194 identified drilling locations in this area based primarily on 10-acre spacing.
South Bearhead Creek/Oretta
The Company�� properties in the South Bearhead Creek/Oretta area represented 20.3% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 4,367 net barrels of oil equivalent per day, consisting of 2,196 barrels of oil, 438 barrels of NGLs and 10,396 million cubic feet of natural gas per day. During 2011, these wells produced at an average daily rate of 2,413 net barrels of oil equivalent per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 100% and 78.5%, respectively, on its acreage in South Bearhead Creek/Oretta area. The Company has an additional 43 identified drilling locations in this area based primarily on 40-acre spacing.
West Gordon
The Company�� properties in the West Gordon area represented 21% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 1,002 net barrels of oil equivalent per day, consisting of 617 barrels of oil, 68 barrels of NGLs and 1,901 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 95.9% and 71.2%, respectively, on its acreage in West Gordon area. The Company has an additional 74 identified drilling locations in this area based primarily on 40-acre spacing.
North Cowards Gully
The Company�� properties in the North Cowards Gully area represented 11.5% of ! its total! proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 149 net barrels of oil equivalent per day consisting of 103 barrels of oil, 11 barrels of NGLs, and 211 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 94.3% and 71.2%, respectively, on its acreage in North Cowards Gully area. The Company has an additional 95 identified drilling locations in this area based primarily on 40-acre spacing.
Advisors' Opinion:- [By The Energy Report]
Onshore, my favorite play is the Utica Shale, in which my top plays are Gulfport Energy Corp. (GPOR) and Rex Energy Corp. (REXX). Both companies have highly economic acreage, solid balance sheets and industry-leading production growth. I also like Rex Energy for its likely production upside. Another one of my favorite plays is the Eagle Ford Shale, in which my top plays are Penn Virginia Corp. (PVA) and Sanchez Energy Corp. (SN). Both have core acreage in the region, improving operating results and experienced management. Another favorite name of mine is Midstates Petroleum Co. Inc. (MPO). The company has assets in three solid plays and a management team with a long successful track record. Those are my favorite names at this time.
- [By Roberto Pedone]
One energy player that's starting to move within range of triggering a major breakout trade is Midstates Petroleum (MPO), an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources. This stock is off to a rough start in 2013, with shares off by 30%.
If you look at the chart for Midstates Petroleum, you'll notice that this stock has recently come out of a nasty downtrend that took shares from over $8 to its low of $4.26 a share. Shares of MPO have started to find some buying interest over the last month at $4.44, 4.26 and $4.48 a share, as the stock has held those levels on recent pullbacks. This could be signaling that a bottom is forming for MPO, since the downside volatility looks over. Shares of MPO are now rebounding strong off those support levels and are quickly moving within range of triggering a major breakout trade.
Traders should now look for long-biased trades in MPO if it manages to break out above some near-term overhead resistance levels at $4.82 a share and then once it takes out its 50-day moving average at $5.30 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 542,939 shares. If that breakout triggers soon, then MPO will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 200-day moving average of $6.54 a share.
Traders can look to buy MPO off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.48 or $4.26 a share. One can also buy MPO off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
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