After the Dow Jones Industrial Average (DJINDICES: ^DJI ) charged to a new record high yesterday on the back of strong economic data, the blue chips gave back exactly all of those gains today, falling 106 points, or 0.7%. There was no major news dragging the Dow down, but fear of the Fed's curtailing its stimulus program has hung in the air for the past week, and investors also seem to feel the market rally may have gotten ahead of itself as major indexes are already up more than 15% this year.
Ten-Year Treasury Yields (INDEX: ^TNX) also climbed to as high as 2.23% last night, their highest mark in more than a year, which seems to have provoked a flight from dividend stocks to the safer T-notes. The Fed's murmurs on cutting its bond-buying program also seem to have prompted the rise in treasury yields as loose monetary policy is generally bad for bond investors since it can cause inflation. The benchmark bond yields are up more than 10% since Fed Chairman Ben Bernanke's speech last Wednesday.
Top Blue Chip Companies To Own For 2014: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Paul]
IBM. Emerging markets are a big growth driver for this computer systems and software provider. Not only that, Resendes says, IBM has "a bullet-proof balance sheet that will allow it to weather the current storm and position it for superior growth and profitability in the long term." He thinks the stock, which recently traded at $93, is worth $120 a share: ''There are some obvious companies that offer much bigger discounts, but you have to incorporate the safety factor. You're getting a premium company here that's a good spot to be in within the tech space."
- [By Peter Hughes]
International Business Machines (IBM) -- our aggressive pick for the year -- is one of the world's most dominant technology companies, with annual revenues of $105 billion and net income of $16 billion.
Top Blue Chip Companies To Own For 2014: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Victor Mora]
Visa strives to help consumers, companies, governments, and other entities by providing methods of easy transaction worldwide. The company recently reported earnings that made investors happy, and the stock is now trading near all-time high prices, with still more room to rise. Over the last four quarters, earnings and revenue figures have been increasing, which has pleased investors in the company. Relative to its strong peers and sector, Visa has been an average year-to-date performer. Look for Visa to continue to OUTPERFORM.
- [By Rebecca Lipman]
Operates retail electronic payments network worldwide. Market cap of $82.48B. EPS growth (5-year CAGR) at 15%. According to Morgan Stanley: "Global penetration of electronic payments remains low with 85% of the world's transactions still cash-based, leaving ample runway to support healthy growth prospects through (at least) 2015."
- [By Ed Carson]
The holiday season was hit or miss for many retailers, but indicators are that consumers were using plastic. Visa shares have risen steadily for the past seven months, with a strong 6% gain so far in 2013. Even in America, consumers continue to shift more from cash and checks to credit and debit cards. Overseas, consumers are adopting plastic, while some are bypassing cards and going straight to mobile payments. Visa wants to make sure it's part of that mobile solution.
Visa earnings growth has decelerated for the past two quarters from 30% to 24% to 21%. Revenue growth in the latest quarter picked up to 15%, matching the best gains of the past two years.
- [By Charles Sizemore]
One of the “big picture” economic themes that I expect to play out over 2011 and beyond is the secular shift to a global cashless society.?Though the process is well on its way in the U.S. and Europe, roughly 40% of all transactions are still made with cash and paper checks according to Barron’s.
This means that even in “boring” developed markets, there is ample room for growth in electronic payments. And there is no better company to benefit from this trend than credit card giant Visa (NYSE: V).
Top Gold Stocks To Own For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By David Eller]
Apple (Nasdaq: AAPL) is loved by its customer base, but it remains a hardware company. After being disappointed by Dell and HP throughout 2012, professional investors have not been willing to acknowledge that Apple may be different, and that traditional hardware margin compression may not be in store for Apple. The fact is that Apple is selling a closed ecosystem of products, not commodity products that interact with third-party hardware. This is similar to IBM’s early days, but with one major difference: Apple provides a better user experience for its customers. Estimates as well as expectations have come down over the last two quarters, and Apple is now trading at less than 10x out year earnings. The company merely needs to execute on its current product line to meet estimates and see a dramatic increase in share price. If it executes on a revised Apple TV product or builds out a Netflix-like, on-demand content offering, these new revenue streams would dramatically increase Apple’s earnings potential. It seems strange but a combination of execution and new product offerings at a time when expectations (and valuation) are low could drive 50% upside to its existing massive valuation.
- [By Jim Jubak]
Not all my picks for 2013 are riding trends. Some, including Apple (AAPL), make their own trends. If Apple's remarkable and maddening stock performance in 2012 demonstrated anything, it was that this stock dances to its own music. Apple shares are capable of climbing when everything else is tumbling and of plunging while the rest of the market is slowly moving ahead.
The stock ended 2012 in deep retreat as sentiment, rather than fundamentals, turned against it. (And sentiment on this baby can quickly go into reverse.) Apple fell from $589 on Nov. 11 to $509 on Dec. 14 -- and that's after a plunge from $702 on Sept. 19 to $526 on Nov. 15.
Investors sold Apple at the end of 2012 on downgrades from Wall Street analysts that cited order reductions to Apple suppliers. But curiously, sellers seem not to have read all the way through these opinions. For example, the analyst at Canaccord Genuity who cut his target price to $750 from $800 (while maintaining a buy rating) wrote that reduced orders to iPhone suppliers could be a result of softer-than-expected sales in international markets or Apple's intention to launch a new iPhone model in June. Other technology analysts,most notably Horace Dediu on Asymco, have argued that Apple is moving to a six-month cycle from a new-model-every-year cycle. This would be a huge change, and I find the argument convincing.
- [By Roberto Pedone]
Finally, we're revisiting Apple (AAPL) this week. Last week, Apple was just starting to break out above it's the downtrending resistance line that's held shares lower for months. And sure enough, in the sessions that have followed, Apple has quietly made a move to test its last swing high at $466.
That price is the nearest important resistance level for the stock; traders should treat a move through $466 as a buy signal. If Apple's downtrend is truly broken, we'll want to see the stock make a series of higher lows and higher highs. Now, the $436 billion firm is finally in a position where it can start to do that. This week's price action could get interesting for Apple bulls.
I'm still recommending buyers keep a protective stop on the other side of the 50-day moving average; it should start looking like a decent proxy for support when a move through $466 happens.
- [By Geoff Gannon] bott Laboratories (ABT), Autodesk (ADSK), Cisco (CSCO) and Exelon (EXC). Others were ideas collected from places like news, etc.
��The ranking exercise (is) based on growth and fundamental analysis. EXC ranks at the bottom in both analyses��op 4 results are Apple, BHP Billiton (BHP), Mosaic (MOS) and Rio Tinto (RIO). MOS was eliminated as it has one year of negative FCF.
Since AAPL is listed as No. 1, I went back and looked at P/E when I bought it at $333 in April and May 2011. The P/E was 11 - 13 times. It is currently 15 times��I think the iPhone 4s plus Sprint network addition plus iPad plus enterprise adoption of Mac will provide an impressive fabric of earning growth that is sustainable.
The other two on the list are basic materials, they could be��good long-term to my stock portfolio. Assuming scarcity as their global trend (need to learn more here.)
From the fundamental analysis: Rio is cheaper than BHP. But, RIO is qualitatively inferior when compared to BHP (ROIC, ROE, ROA). I have not looked at Vale (VALE), so maybe next weekend I will continue this exercise with VALE.
I am not confident what the next step can be.
Should I do more work or buy AAPL or EXC?
Thank you very much.
Ning
(I should mention here that Ning included some very extensive Excel tables with this email.)
Those are some extensive tables you included there. They are thorough. But I think the next step is not quantitative. It is qualitative. I would first look at the stocks you already own and feel you know best.
This sounds like Apple (AAPL) and Exelon (EXC).
I may be wrong about that. But it sounded to me like you had a lot of basic materials stocks show up for purely quantitative reasons, while you yourself didn�� have a strong feeling whether buying basic materials was a good idea or not. It could be. But you didn�� seem to have any special insight there. Am I right?
Where you did have some special insight ��or at lea! st a very clear opinion ��was on Apple. Now, normally I wouldn�� encourage anyone to start with one of the most talked about, written about, gossiped about companies out there.
Everybody has an opinion on Apple. Everybody knows the company. It is hardly a hidden gem. But it might be a gem in plain sight. And it sounds like you have some ideas about Apple beyond the numbers. So, that�� where you should start.
The other company it sounds like you��e interested in is Exelon. Part of the reason why I�� saying you sounded interested in doing more work on Exelon is that you talked about the stock despite it finishing at the bottom of your purely quantitative comparison.
Is that really a good sign? Am I really saying you should spend more time studying a company that finished at the bottom of a comparison you drew up?
Here�� what I�� saying. You did a wonderful quantitative comparison of some very different stocks. A bunch of the stocks you��e got there are basic materials stocks. This should tip you off that something is ��amiss. When you do a purely quantitative survey of stocks you��e casting a net. When you get back a list of stocks that are all in the same industry, you need to take a good, long pause.
You may not be measuring what you think you��e measuring. Or at least you may not be catching what you wanted in that numerical net you threw.
I think Exelon and Apple are a good place to start.
They are very different companies. That's good. Apple is a very high profile company. While Exelon is not. Both are potentially very interesting companies.
You could argue that either has a wide moat.
I wouldn't disparage the quality of either business relative to its peers. However, I think the next step ��for me at least ��would be to look at the industries they operate in. Are Apple and Exelon predictable? Do they have sustainable competitive advantages ��especially in regards to operating margins and return on equity. ! Look at t! he stocks found in GuruFocus�� Buffett-Munger Screener. Compare the stocks you��e interested in with those companies. Not just quantitatively, but qualitatively as well. Right now, it doesn�� look like either Apple or Exelon score very high in terms of business predictability (as GuruFocus measures it). Again, that�� a purely quantitative judgment ��like your own Excel tables ��but it�� worth keeping in mind.
I��l tell you how I use quantitative measures. I don�� think of them as giving me the whole picture. I like to think of them more like vital signs. They are alerts. They let me know what areas of a stock I need to study more thoroughly. For example, Apple gets a 1-Star business predictability rating. Does that mean it�� a bad, unpredictable company?
Absolutely not. It just means that the trajectory Apple has had these last 10 years hasn�� been predictable. It has been phenomenal.
So you need to focus ��this is always true, but it�� especially true with Apple ��on whether or not the current level of sales, earnings, etc., are sustainable for the long-term. In Apple�� case, this means you need to do qualitative analysis. Probably competitive analysis.
The industry Apple operates in ��consumer electronics ��is not an especially predictable one. It is not one where competitive advantages ����oats����tend to be especially durable. That doesn�� mean that Apple can�� maintain its terrific position. It doesn�� mean Apple lacks a moat. It just means that you need to investigate that issue.
Okay. Another good question to ask is what the risks are. What happens if your assessment of a company is wrong? What if you think Apple has a wide moat and it doesn��? What if you think a barrel of oil will be $150 in 2013 and it ends up being $50? Often, investors focus on the probability of an event. That�� important. But it�� not more important than thinking about what happens if your assessment is wrong. Maybe $150 a barrel oil ! is way mo! re likely than $50 a barrel oil. But ��no matter how sure you felt about the future price of oil ��would you really buy a stock that could go to zero if oil stayed at $50 for any length of time? Probably not. Likewise, however strongly you feel about Apple�� ��oat��as of this moment ��it�� important to be honest about what would happen to the stock (and your portfolio) if Apple�� moat were breached.
I wrote about mean reversion in one of my net-net posts. My point was that when you buy a company that's very cheap relative to its liquid and/or tangible assets any movement toward that company doing "about average" relative to American business generally is a positive for you. Well, these two stocks ��Apple and Exelon ��are far from net-nets. Any movement towards an "about average" business performance for stocks like Apple and Exelon will be very, very bad for you. That is because you are ��in both cases ��paying a high price to liquid and tangible assets (relative to the price you could buy many of their peers at).
That doesn't mean they are bad businesses. An insurer or bank that trades at a premium to tangible book value may be quite a bargain if it is something like Progressive (PGR) or Wells Fargo (WFC).
The important thing is not to confuse a temporarily wonderful competitive position with a competitive position like PGR or WFC that can probably be maintained for many, many years.
You may disagree with me here, but I think in the case of Apple you are really betting on the organization. And in the case of Exelon you are betting on the assets. Basically, you are saying that Apple's brand and people and culture working together are going to achieve things ��like higher returns on investment ��than competitors who seek to do the same thing. In the case of Exelon, I think you are saying that their assets are lower cost (higher margin) generators of power than their competitors. In fact, you are saying they are so much more efficient that it is wort! h paying ! a substantial premium to tangible book value.
I don't disagree with either claim. I think Apple has a superior organization. And Exelon has superior assets.
Exelon's assets are clearly carried at far below their economic value. So the issue with Exelon is how to value those assets.
Have you read Phil Fisher's "Common Stocks and Uncommon Profits?"
It is a good book to read if you are thinking about investing in Apple.
And "There's Always Something to Do" is a good book to read when thinking about Exelon.
After reading the information you sent me, I'd say that the most important thing for you to do now is get some distance from comparative numbers. Think about what it is you are buying in each case. What aspect of the business is providing you with your margin of safety?
It�� not the price.
These are not cheap stocks on an asset value basis if you consider only their tangible book value.
Therefore, either the tangible assets must be worth much more than they are carried for on the books ��or the intangibles must be very valuable for you to buy these stocks.
In your final analysis I think you should focus on one question:
How comfortable would you be if you had to hold this stock forever?
This is an important question because you may have in mind that you have a lot of faith in Apple right now. That faith may be well founded. But if you have little faith in Apple four or five or six years out ��do you really think you will be the first to spot the company's loss of leadership? Think about how quickly companies like Nokia (NOK) and Research In Motion (RIMM) saw their P/E ratios contract when investors realized just how far they were behind the competition. Do you really think you will be fast enough to spot a change in Apple's position? It�� not enough to see the writing on the wall. You have to see it faster than everyone else. You have to sell before they do.
That�� not the Phil Fisher way. The Phil F! isher way! is to be very sure when buying a growth company. Then, yes, you do monitor the situation. But it is not about understanding the situation one or two years out. It is about understanding the qualities already present in the company that will prove durable.
Even if you've read Phil Fisher and Peter Cundill's books, I'd suggest looking at them again as they are good examples of the kind of investing you are trying to do in Apple (Fisher) and Exelon (Cundill).
Also, you might want to read a bit about Marty Whitman's philosophy and Mario Gabelli's philosophy. If you think Exelon is a buy, it is probably because you have reasons similar to the reasons those two investors have when they buy a stock.
Basically, Marty Whitman and Mario Gabelli try to find out the value of a company's assets in a private transaction. They don't try to figure out what public markets will pay for the stock. They try to figure out what private owners would pay for the business and they work back from there to figure out the stock's value.
So my advice is to step back from all the numbers. Zero in on just a couple companies. Don't look at more than one stock in the same day. If you are thinking about Apple today then think only about Apple for today. Exelon can wait until tomorrow. Think about what aspect of the company makes the stock clearly worth more than its current price. Then study that aspect. And don't add a dime to your investment in that stock until you are comfortable with betting on the permanence of that aspect.
Make sure you understand the value in the company. And make sure that value is durable.
Understanding often requires more than just numbers. So, I
Top Blue Chip Companies To Own For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Hawkinvest]
Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.
Here are some key points for CVX:
Current share price: $104.25
The 52 week range is $85.63 to $110.01
Earnings estimates for 2012: $12.66 per share
Earnings estimates for 2013: $13.20 per share
Annual dividend: $3.42 per share which yields 3.1%
- [By Victor Mora]
Chevron provides essential energy products and services to growing companies and consumers worldwide. The stock has been on a bullish run for many years that has taken it to all-time high prices. Over the last four quarters, earnings and revenue figures have been mixed, however, investors in the company have been mostly happy with earnings reports. Relative to its peers and sector, Chevron has been a year-to-date performance leader. Look for Chevron to OUTPERFORM.
- [By Jonas Elmerraji]
Surprisingly, one of the names that's correlating the highest with the S&P 500 right now is oil and gas supermajor Chevron (CVX). Just like the S&P, Chevron is trading in a very well-defined trend channel. The key difference is that the Chevron trade is further along; this stock is bouncing off of trendline support this week. That means it's time to be a buyer.
Commodities and materials stocks are seeing some buoyancy this week, but Chevron's price action is different -- it's been more sustained over the course of 2013. This stock's proximity to trendline support right now makes it the best-in-breed oil name in my view. As geopolitical risks propel oil prices, the real story at CVX is the fact that support is just a few points away. That makes Chevron a great setup from a risk management perspective.
Speaking of risk management, if you decide to jump into shares here, I'd recommend keeping a protective stopprotective stop just above the 200-day moving average.
- [By GuruFocus] Tom Gayner initiated holdings in Chevron Corp. His purchase prices were between $114.81 and $126.43, with an estimated average price of $120.86. The impact to his portfolio due to this purchase was 0.18%. His holdings were 43,000 shares as of 06/30/2013.
New Purchase: Brookfield Property Partners LP (BPY)
Tom Gayner initiated holdings in Brookfield Property Partners LP. His purchase prices were between $19.57 and $23.64, with an estimated average price of $21.67. The impact to his portfolio due to this purchase was 0.13%. His holdings were 175,122 shares as of 06/30/2013.
New Purchase: ONEOK, Inc. (OKE)
Tom Gayner initiated holdings in ONEOK, Inc.. His purchase prices were between $41.16 and $52.13, with an estimated average price of $46.98. The impact to his portfolio due to this purchase was 0.1%. His holdings were 70,000 shares as of 06/30/2013.
New Purchase: Blackstone Group LP (BX)
Tom Gayner initiated holdings in Blackstone Group LP. His purchase prices were between $19.1 and $23.45, with an estimated average price of $21.2. The impact to his portfolio due to this purchase was 0.09%. His holdings were 116,900 shares as of 06/30/2013.
New Purchase: BlackRock Inc (BLK)
Tom Gayner initiated holdings in BlackRock Inc. His purchase prices were between $245.3 and $291.69, with an estimated average price of $267.9. The impact to his portfolio due to this purchase was 0.08%. His holdings were 9,100 shares as of 06/30/2013.
New Purchase: KKR & Co LP (KKR)
Tom Gayner initiated holdings in KKR & Co LP. His purchase prices were between $17.8 and $21.15, with an estimated average price of $19.85. The impact to his portfolio due to this purchase was 0.08%. His holdings were 115,000 shares as of 06/30/2013.
New Purchase: Eni SpA (E)
Tom Gayner initiated holdings in Eni SpA. His purchase prices were between $40.39 and $48.96, with an estimated average price of $45.85. The impact to his portfolio due to this purchase was 0.04%. His ! holdings were 30,000 shares as of 06/30/2013.
New Purchase: Ross Stores, Inc. (ROST)
Tom Gayner initiated holdings in Ross Stores, Inc.. His purchase prices were between $59.26 and $66.5, with an estimated average price of $64.05. The impact to his portfolio due to this purchase was 0.04%. His holdings were 18,000 shares as of 06/30/2013.
New Purchase: Carlyle Group LP (CG)
Tom Gayner initiated holdings in Carlyle Group LP. His purchase prices were between $24.19 and $32.87, with an estimated average price of $29.56. The impact to his portfolio due to this purchase was 0.02%. His holdings were 20,000 shares as of 06/30/2013.
Sold Out: EOG Resources (EOG)
Tom Gayner sold out his holdings in EOG Resources. His sale prices were between $113.44 and $137.9, with an estimated average price of $128.22.
Sold Out: State Street Corp (STT)
Tom Gayner sold out his holdings in State Street Corp. His sale prices were between $56.51 and $67.44, with an estimated average price of $62.2.
Sold Out: Bunge Ltd (BG)
Tom Gayner sold out his holdings in Bunge Ltd. His sale prices were between $66.4 and $73.51, with an estimated average price of $70.39.
Added: UnitedHealth Group Inc (UNH)
Tom Gayner added to his holdings in UnitedHealth Group Inc by 45.25%. His purchase prices were between $58.54 and $66.09, with an estimated average price of $62.22. The impact to his portfolio due to this purchase was 0.4%. His holdings were 569,800 shares as of 06/30/2013.
Added: Liberty Media Corporation (LMCA)
Tom Gayner added to his holdings in Liberty Media Corporation by 102.38%. His purchase prices were between $108.75 and $130.01, with an estimated average price of $119.32. The impact to his portfolio due to this purchase was 0.2%. His holdings were 85,000 shares as of 06/30/2013.
Added: National Oilwell Varco, Inc. (NOV)
Tom Gayner added to his holdings in National Oilwell Varco, Inc. by 40.44%. His purchase prices were bet! ween $64.! 14 and $71.57, with an estimated average price of $68.35. The impact to his portfolio due to this purchase was 0.14%. His holdings were 191,000 shares as of 06/30/2013.
Added: Google, Inc. (GOOG)
Tom Gayner added to his holdings in Google, Inc. by 86%. His purchase prices were between $765.914 and $915.89, with an estimated average price of $849.25. The impact to his portfolio due to this purchase was 0.13%. His ho
Top Blue Chip Companies To Own For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Louis Navellier]
Philip Morris International (NYSE:PM) is involved with the manufacture and sale of cigarettes and other tobacco products in over 180 countries across the globe. Year to date, PM stock is up 16%, compared to a loss of nearly 2% for the Dow Jones.
- [By Roberto Pedone]
One stock that insiders are buying up a large amount of here is Philip Morris International (PM), which manufactures and sells cigarettes and other tobacco products in markets outside the U.S. Insiders are buying this stock into modest strength, since shares are up 5.5% so far in 2013.
Philip Morris International has a market cap of $143 billion and an enterprise value of $168 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 17.25 and a forward price-to-earnings of 14.6. Its estimated growth rate for this year is 4.2%, and for next year it's pegged at 11.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.59 billion and its total debt is $25.50 billion. This stock currently sports a dividend yield of 3.8%.
A director just bought 123,500 shares, or about $11.01 million worth of stock, at $89.15 per share.
From a technical perspective, PM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last two months and change, with shares dropping from its high of $95.38 to its recent low of $85.21 a share. During that move, shares of PM have been mostly making lower highs and lower lows, which is bearish technical price action.
If you're bullish on PM, then I would look for long-biased trades as long as this stock is trending above some near-term support at $87.65 to $87 and then once it takes out its 200-day at $88.72 and its 50-day at $89.25 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 5.10 million shares. If we get that move soon, then PM will set up to re-test or possibly take out its next major overhead resistance levels at $91.40 to $92.26 a share. Any high-volume move above those levels will then put $94 to $95 into range for shares of PM.
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