We've seen quite a long, and somewhat, complex bull market over the past few years, writes Tom Bradley, of The Globe and Mail, who analyzes it through a three-pronged approach.
A long stock market run goes through many phases. There's a healthy debate going on right now as to where this one is at��oes it have further to go, or is it over? In assessing where we are, it's useful to look back at how things unfolded over the last four and a half years, and understand why markets have gone up so much.
I'm going to look at it through three lenses��undamentals (the outlook for profits and dividends); valuation (what we're paying for those profits and dividends) and investor sentiment (how bullish or bearish investors are).
When this bull market started on March 9, 2009, the fundamentals didn't look very good. The banks were teetering, a recession was imminent, and the outlook for earnings was poor, to say the least.
In hindsight, it was as good a starting point for a bull market as you'll ever see. The necessary requirements were all there�� poor short-term outlook, rock-bottom price to earnings multiples (P/Es), forced selling from margin accounts and liquidity-strained pensions funds, and a feeling that we'll never make a decent return in the stock market again.
Top 10 Dividend Companies To Buy Right Now: Regal Beloit Corporation(RBC)
Regal Beloit Corporation, together with its subsidiaries, manufactures and sells electric motors and controls, electric generators and controls, and mechanical motion control products primarily in the United States and Asia. The company operates in two segments, Electrical and Mechanical. The Electrical segment manufactures and markets AC and DC commercial, industrial, and commercial refrigeration electric motors and blowers, as well as heating, ventilation, and air conditioning (HVAC) electric motors and blowers. It also provides precision servo motors, electric generators, automatic transfer switches and paralleling switchgear, and control electric power generation equipment; AC and DC variable speed drives and controllers, and other accessories for industrial and commercial applications; and capacitors for use in HVAC systems, high intensity lighting, and other applications. The Mechanical segment manufactures and markets a range of mechanical motion control products, i ncluding worm gears, bevel gears, helical gears, and concentric shaft gearboxes; marine transmissions; after-market automotive transmissions, and ring and pinions; custom gearing; gearmotors; electrical connecting devices; and manual valve actuators, which are used in oil and gas, water distribution and treatment, and chemical processing applications. The company sells its products to original equipment manufacturers, distributors, and end users through its direct sales people and manufacturer?s representative organizations. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin.
Advisors' Opinion:- [By Rich Duprey]
Electric-motor maker�Regal Beloit (NYSE: RBC ) announced on Friday its third-quarter dividend of $0.20 per share, the same rate it paid last quarter after raising the payout 5% from $0.19 per share.
Top 10 Dividend Companies To Buy Right Now: Cinemark Holdings Inc(CNK)
Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.
Advisors' Opinion:- [By Rich Smith]
As movie-theater operator Cinemark (NYSE: CNK ) exits the Mexican market, another "gringo" is expanding to fill the gap -- from even farther north of the border.
- [By John Udovich]
The shares of small cap IMAX Corporation (NYSE: IMAX) have slipped more than 10% this week on growth concerns - meaning it might be a good idea to take a closer look at the stock plus its performance�verses other cinema stocks like Carmike Cinemas, Inc (NASDAQ: CKEC), Cinemark Holdings, Inc (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) along with the PowerShares Dynamic Leisure & Entertainment ETF�(NYSEARCA: PEJ).
Hot Gold Companies To Own In Right Now: CRB Futures Index(CR)
Crane Co. manufactures and sells engineered industrial products in the United States and internationally. The company operates in five segments: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling, and Controls. The Aerospace & Electronics segment offers pressure, fuel flow, and position sensors and subsystems; brake control systems; coolant, lube and fuel pumps; and seat actuation products. This segment also provides power supplies and custom microelectronics for aerospace, defense, medical, and other applications; and electrical power components, power management products, electronic radio frequency, and microwave frequency components and subsystems for the defense, space, and military communications markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels for the truck trailer and recreational vehicle markets, industrial markets, and the commercial construction industry. The Merchandising Systems segmen t offers vending solutions, such as food, snack, and beverage vending machines; and vending machine software and online solutions, as well as payment solutions, including coin accepters and dispensers, coin hoppers, coin recyclers, bill validators, and bill recyclers. The Fluid Handling segment manufactures and sells various industrial and commercial valves and actuators; provides valve testing, parts, and services; manufactures and sells pumps and water purification solutions; distributes pipe, pipe fittings, couplings, and connectors; and designs, manufactures, and sells corrosion-resistant plastic-lined pipes and fittings. The Controls segment produces ride-leveling, air-suspension control valves for heavy trucks and trailers; pressure, temperature, and level sensors; ultra-rugged computers, measurement and control systems, and intelligent data acquisition products; and water treatment equipment. Crane Co. was founded in 1855 and is based in Stamford, Connecticut.
Advisors' Opinion:- [By CRWE]
Crane Co. (NYSE:CR) reported that Andrew L. Krawitt, Vice President, Treasurer and Principal Financial Officer, will be speaking at the 2012 Citi Global Industrials Conference in Boston on Wednesday, September 19, 2012 from 2:00 PM to 2:40 PM.
- [By Howard Gold]
In recent years, Congress has passed continuing resolutions (CR) instead of formal budgets to fund the government. The latest runs out on October 1, which is when fiscal year 2014 begins. Without that funding, the government would begin shutting down.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Crane (NYSE: CR ) , whose recent revenue and earnings are plotted below.
Top 10 Dividend Companies To Buy Right Now: M&T Bank Corporation (MTB)
M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; cred it life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.
Advisors' Opinion:- [By Jack Adamo]
We've owned the common stock of M&T Bank (MTB) for almost two years. It has returned 43% so far. Super bank analyst Meredith Whitney, and Tom Keene, the brilliant Bloomberg economist, both called M&T the best-managed large American bank. It consistently delivers superior returns while taking less risk.
Top 10 Dividend Companies To Buy Right Now: Telecom Corporation of New Zealand Limited(NZT)
Telecom Corporation of New Zealand Limited, together with its subsidiaries, provides telecommunications services, as well as information, communication, and technology services in New Zealand and Australia. Its products and services include local, national, international, and value-added telephone services; mobile services; data, broadband, and Internet services; IT consulting, implementation, and procurement services; and equipment sales and installation services. The company also involves in the retail of telecommunications products and services. It serves residential, business, and government customers. Telecom Corporation of New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.
Top 10 Dividend Companies To Buy Right Now: Avon Products Inc. (AVP)
Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.
Advisors' Opinion:- [By Sean Williams]
Finally, beauty products maker Avon Products (NYSE: AVP ) gained 4.1% after also reporting its first-quarter results. Total revenue dipped 4% for the quarter, but was hurt primarily by unfavorable currency translation. Volume dropped 3%, but was countered by a 3% jump in prices. The Street might appear pleased with Avon's stabilizing business, but I continue to see its volume declines and high representative turnover as discouraging. Price hikes seem to be the only way Avon can stabilize its domestic and overseas business, and that's a recipe that I'm fairly certain will lead to lost customers.
- [By Rich Duprey]
Health and beauty products provider Avon Products� (NYSE: AVP ) �will pay a regular quarterly dividend of $0.06 on�June 3 �to shareholders of record at the close of business on May 14. That's the same amount it declared in February and November.
- [By Grace L. Williams]
You don’t have to go door to door to find dismal news about Avon (AVP) today. Between the stock tanking over 20% and the company�� announcements of a weak third-quarter topped with news that federal regulators are increasing the penalties to resolve its ongoing bribery probe, it�� one ugly afternoon for the beauty product and cosmetics company.
The Wall Street Journal�� Serena Ng and Anna Prior recapped Avon�� woes nicely this afternoon:
The government’s position, disclosed by Avon in a regulatory filing, adds another big weight on a company already struggling to turn around a string of poor results. On Thursday, the door-to-door seller of makeup and consumer products reported a third-quarter loss following a steep drop in sales in the U.S. and China.
Regarding the bribery probe, the WSJ writes:
Avon has been trying to resolve a federal bribery probe that has dogged it since 2008 and has already racked up roughly $340 million in legal and related costs. The company is in talks with the Securities and Exchange Commission and Justice Department to settle an investigation into whether Avon breached the Foreign Corrupt Practices Act by providing gifts or making payments to officials in China and other countries to get licenses to sell its products.
Analysts were mixed-to-negative in reaction to the news, revising their recommendations and slashing price targets. Rommel Dionisio of Wedbush, for one, cut the price target to $21 from $24, writing:
Avon reported third-quarter revenue of $2.323 billion and adjusted earnings-per-share of 14 cents, again short of consensus forecasts of $2.443 billion and 19 cents, respectively. Overall local currency sales fell 1%, sequentially worse than the 2% growth seen in the second quarter, as sharp declines in North America (18%) and Asia-Pacific (19%) were partially offset by growth in Latin America (6%).
We believe shares of Avon should trade at a 5%-10% disc
Top 10 Dividend Companies To Buy Right Now: Deswell Industries Inc.(DSWL)
Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.
Top 10 Dividend Companies To Buy Right Now: R.R. Donnelley & Sons Company(RRD)
R.R. Donnelley & Sons Company provides pre-media, printing, logistics, and business process outsourcing products and services to private and public sectors worldwide. The company operates primarily in the commercial print portion of the printing industry, with related product and service offerings designed to offer customers solutions for communicating their messages to target audiences. Its products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial print, direct mail, forms, labels, office products, statement printing, pre media, and logistics services. The company also offers business process outsourcing services that comprise transactional print and outsourcing services, statement printing, direct mail, and print management services; and product configuration, customized kitting, and order fulfillment for technology, medical device, and other companies. It distributes its products to end-users through the United Sta tes postal services, retail channels, electronically, or by direct shipment to customer facilities. R.R. Donnelley & Sons was founded in 1864 and is based in Chicago, Illinois.
Advisors' Opinion:- [By Eric Volkman]
RR Donnelley (NASDAQ: RRD ) will pay a quarterly dividend of $0.26 per share of its common stock on June 3 to shareholders of record as of April 26, the company announced this week.
- [By John Udovich]
Printing and the various forms of marketing communications that need to be printed (like business cards and stationary) are fundamental to the needs of every business, meaning the recent share surge of small cap Standard Register Co (NYSE: SR) after it announced an acquisition along with its long-term performance against better known peers like RR Donnelley & Sons Co (NASDAQ: RRD) and VistaPrint Limited (NASDAQ: VPRT) is worth taking a closer look at. After all, Standard Register is up 363.2% since the start of the year verses a return of 113.4% for RR Donnelley & Sons Co and�75.9% for VistaPrint Limited.
- [By Brian Stoffel]
R.R. Donnelley & Sons (NASDAQ: RRD )
This company, based out of Chicago, has been an industry stalwart since its founding in 1864. Back then, founder Richard Donnelley printed the precursor to the Yellow Pages for Chicago residents. �
Top 10 Dividend Companies To Buy Right Now: Cummins Inc.(CMI)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Advisors' Opinion:- [By Sean Williams]
Second, fuel cost control has been crucial, and will remain a key component to Swift's success. Swift is handling its fuel costs this by maximizing the operating efficiency of its tractor and trailer fleet, and by partnering up with natural gas diesel engine manufacturer Cummins (NYSE: CMI ) . The goal of this partnership is to develop natural gas engines that get comparable mileage to diesel at a cheaper cost, and when combined with increased CNG fueling stations around the U.S. operated by Clean Energy Fuels (NASDAQ: CLNE ) , create a win-win scenario for all parties involved. To that end, Swift's fuel operating costs should drop, Cummins will have a steady stream of business, Clean Energy Fuels gets a large fueling customer under its belt that will help with building out its fuel station infrastructure, and the world gets fewer emissions from burning diesel.
Top 10 Dividend Companies To Buy Right Now: Johnson & Johnson(JNJ)
Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.
Advisors' Opinion:- [By Chris Hill]
Johnson & Johnson (NYSE: JNJ ) reported higher than-than-expected earnings. Shares of the consumer giant are up 28% in the past year. Will Johnson & Johnson continue to produce for investors? Should Johnson & Johnson follow Procter & Gamble's (NYSE: PG ) lead and double down on some of its more profitable assets. In this installment of MarketFoolery, our analysts talk about the future of Johnson & Johnson.
- [By WALLSTCHEATSHEET.COM]
Johnson & Johnson provides valuable and essential health care products and services to many consumers and companies operating worldwide. The company will pay at least $2.47 billion in damages related to defective hip implants sold by the company. This is the second multibillion-dollar settlement Johnson & Johnson has faced in the last month. The stock has been has been trending higher in the last several years and is currently trading near highs for 2013. Over the last four quarters, earnings have been mixed while revenues have been rising, which has led to positive feelings among investors about recent earnings announcements. Relative to its peers and sector, Johnson & Johnson has been a year-to-date performance leader. Look for Johnson & Johnson to OUTPERFORM.
- [By Chuck Saletta]
There are currently four U.S. companies with the top ranked AAA debt rating: Microsoft (NASDAQ: MSFT ) , ExxonMobil (NYSE: XOM ) , Johnson & Johnson (NYSE: JNJ ) , and Automatic Data Processing (NASDAQ: ADP ) . Investors buying their debt are nearly completely certain that they'll get all their interest payments on time, and get full redemption value when the bonds mature.
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