Freeport-McMoran (FCX), came out with some big announcements today: a 2-1 stock split and a $1/share special dividend. FCX closed up 2% today at $110.66 on the news.
The stock split was approved by the board of directors today and will take place in February 2011. As for the special dividend, the payments will be sent out on December 30 for all shareholders that hold the stock as of December 20. You have some time to get a stake in FCX to reap this special dividend.
Freeport's stock is able to boost its regular dividend from $1.20 to $2 and issue a special dividend based on its huge profits from the rising copper prices. The stock is up 38% this year and is positioning itself to move higher. Freeport is stepping up production to meet the demand for copper and is certainly reaping the benefits. Copper is expected to continue its climb after it closed at a record high yesterday, in the wake of higher demand and the construction of housing.
These events are fantastic but it also tells us, the investor, that Freeport cares about its shareholders and really want to return value to the shareholders. This is always a classic sign of a great, well-run company.
Fundamental Analysis
P/E: 14
Forward P/E: 11
Price/Sales: 2.84
PEG: 1.28
Price/Book: 4.4
ROE: 39%
Total Debt/Equity: 41
Revenue: 18B
Dividend yield: 3% (regular+special)
Earnings Growth (this year): 43%
Earnings Growth (next 5 years): 8%
Based on the fundamentals, it isn't oversold but the 8% growth over next 5 years isn't super attractive. However, you have to look at the some of the good signs: low P/E, low P/S, good ROE, great dividend. Remember, this is the bare bones fundamental analysis, more in depth would be needed to assume this is a good investment for you. Personally, FCX is a great way to play the rising demand of copper. They have solid management that know how to please the shareholders and they will continue to position themselves to profit nicely from copper and gold. FCX is one of my favorite mining stocks out there.
Trade: Pick up some FCX before December 20 to get in on that special dividend. I am bullish on FCX until copper's demand decreases. I would then scale back. In short, if you buy FCX, you have to be able to watch the copper and gold futures to monitor price movements and how they will affect the stock and its earnings.
Disclosure: plan on buying FCX in near future
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
Thursday, December 9, 2010
Sunday, December 5, 2010
Boosting Returns With These Dividend Stocks
There are many basics that you need for a well diversified portfolio. You need your techs like Intel (INTC), your energies Exxon Mobil (XOM), your food and drink Coca-Cola (KO), etc. What is very important for a basic portfolio to have is high yielding dividend stocks. Dividends are important because they can not only boost returns but they can also help cover losses sustained in the stock.
I put the stocks in bold for a reason, they all pay decent yielding dividends, 2.7%-3%.Yes, 3% is a good dividend but there are some stable companies paying huge dividends, 6-8%.
I recommend Verizon Communications (VZ), Eli Lilly (LLY), Waste Management (WM), Bristol-Myers Squibb (BMY), National Presto Industries (NPK).
Verizon Communications (VZ):
Verizon is the well known cell phone corporation that operates all over the US. Verizon recently introduced its new 4G experience which will be a huge growth driver over the next few years. VZ has benefited greatly from the Android phones this year, boosting sales. The big news for VZ is the fact that they may be getting the Apple iPhone in the coming year.
Dividend Yield: 6%
Price/Sales: .86
Eli Lilly (LLY)
Eli Lilly is a biotechnology company that develops drugs for mostly neuropsychological disorders such as schizophrenia, manic episodes, bipolar medications, ADHD, depression, etc. Although LLY is a strong company, its sales forecasts have been lowered because most of its cash cow drugs will be expiring. However, LLY is known for innovation and they are paying you pretty well to wait out any turbulence.
Dividend Yield: 5.7%
Price/Sales: 1.66
Waste Management (WM)
WM is a garbage company, literally. Waste Management offers collection, transfer, recycling, disposal, and waste-to-energy services. WM are the leaders of the trash industry with a market cap of 16.56B, nearly 5.5B larger than its next closest competitor Republic Services (RSG). WM has an expected growth of over 12% in 2011.
Dividend Yield: 3.6%
Price/Sales: 1.35
Bristol-Myers Squibb (BMY)
BMY is another pharmaceutical company that innovates drugs for serious diseases such as "affective (psychiatric) disorders, Alzheimer’s/dementia, cardiovascular (primarily atherosclerosis/thrombosis), diabetes, hepatitis, HIV/AIDS, obesity, oncology, rheumatoid arthritis and related diseases, and solid organ transplant". As you can tell by the list there are some very serious diseases on there: HIV/AIDS, Alzheimer's to name a few. BMY has had many successful drugs to combat these diseases and the stocks performance over the years shows that. BMY is one of the huge leaders in the biotech/pharmaceutical industry.
Dividend Yield: 5%
Price/Sales: 2.28
National Presto Industries (NPK)
A small, diversified company that makes diapers, cooking appliances and ammunition. NPK has a sizable insider holding of the stock at over 30%. Their balance sheets are clean of debt but the best part is they pay a regular dividend...and a special dividend every year. Thereby making a very sizable yield that is pretty attractive. NPK is estimated to grow over 11% in 2011. NPK is also estimated to make 157.75M this quarter, up 4.5% from last year.
Dividend Yield (Total): 6.5%
Price/Sales: 1.73
As you can see there are some nice dividends that were recommended that will surely boost your returns and give you some working capital while you earn capital gains. It is always important to have a great, big dividend yield to provide security in volatile times.
Announcements:
Dislosure: Long XOM
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
I put the stocks in bold for a reason, they all pay decent yielding dividends, 2.7%-3%.Yes, 3% is a good dividend but there are some stable companies paying huge dividends, 6-8%.
I recommend Verizon Communications (VZ), Eli Lilly (LLY), Waste Management (WM), Bristol-Myers Squibb (BMY), National Presto Industries (NPK).
Verizon Communications (VZ):
Verizon is the well known cell phone corporation that operates all over the US. Verizon recently introduced its new 4G experience which will be a huge growth driver over the next few years. VZ has benefited greatly from the Android phones this year, boosting sales. The big news for VZ is the fact that they may be getting the Apple iPhone in the coming year.
Dividend Yield: 6%
Price/Sales: .86
Eli Lilly (LLY)
Eli Lilly is a biotechnology company that develops drugs for mostly neuropsychological disorders such as schizophrenia, manic episodes, bipolar medications, ADHD, depression, etc. Although LLY is a strong company, its sales forecasts have been lowered because most of its cash cow drugs will be expiring. However, LLY is known for innovation and they are paying you pretty well to wait out any turbulence.
Dividend Yield: 5.7%
Price/Sales: 1.66
Waste Management (WM)
WM is a garbage company, literally. Waste Management offers collection, transfer, recycling, disposal, and waste-to-energy services. WM are the leaders of the trash industry with a market cap of 16.56B, nearly 5.5B larger than its next closest competitor Republic Services (RSG). WM has an expected growth of over 12% in 2011.
Dividend Yield: 3.6%
Price/Sales: 1.35
Bristol-Myers Squibb (BMY)
BMY is another pharmaceutical company that innovates drugs for serious diseases such as "affective (psychiatric) disorders, Alzheimer’s/dementia, cardiovascular (primarily atherosclerosis/thrombosis), diabetes, hepatitis, HIV/AIDS, obesity, oncology, rheumatoid arthritis and related diseases, and solid organ transplant". As you can tell by the list there are some very serious diseases on there: HIV/AIDS, Alzheimer's to name a few. BMY has had many successful drugs to combat these diseases and the stocks performance over the years shows that. BMY is one of the huge leaders in the biotech/pharmaceutical industry.
Dividend Yield: 5%
Price/Sales: 2.28
National Presto Industries (NPK)
A small, diversified company that makes diapers, cooking appliances and ammunition. NPK has a sizable insider holding of the stock at over 30%. Their balance sheets are clean of debt but the best part is they pay a regular dividend...and a special dividend every year. Thereby making a very sizable yield that is pretty attractive. NPK is estimated to grow over 11% in 2011. NPK is also estimated to make 157.75M this quarter, up 4.5% from last year.
Dividend Yield (Total): 6.5%
Price/Sales: 1.73
As you can see there are some nice dividends that were recommended that will surely boost your returns and give you some working capital while you earn capital gains. It is always important to have a great, big dividend yield to provide security in volatile times.
Announcements:
- Look for an upcoming interview with hedge fund manager Tim Ayles for his outlook for 2011 and how to set up your portfolio for success in the new year.
- Be sure to check out the "recommended ebook buys" section of the left side of the webpage to get in on some great financial ebooks that will make you money
- Also check out the book at the beginning of this post that can be purchased through Amazon. Aftershock by Robert Reich is a well done book about the 2008 crisis but way more indepth than most books about the crisis. Check it out, it is only $12.43, normally $25.
Dislosure: Long XOM
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Sunday, November 21, 2010
Cisco: Good Long Term Buy
Cisco Systems (CSCO) makes IP networking devices and is a very prominent tech company that has been known as an innovator. Last week Cisco (CSCO) reported 3Q earnings which were lower than the Street's estimates and on top of that, Cisco lowered its outlook. Cisco blames lower government spending of IP products as the new Congress campaigns on cutting spending. Needless to say, the stock was destroyed, down about 20%.
As Wall Street becomes more and more bearish on Cisco, it could be time to pick up some shares at a cheap price of $19.61. Cisco is a great value play if you are looking for a top tier tech stock that is temporally seeing some headwinds. They have experienced issues in the past that they were able to bounce back after they looked to innovate their products and expand their markets.
Cisco will do as it has done before, innovate. Find a new way to market their product, expand their market more rigorously in emerging countries. That's right, Cisco has a growth rate of 12% for fiscal 2011 and 17% growth over next 5 years. Much of this growth will come from emerging markets that are looking to update servers and networks.
On a more fundamental level, Cisco has a P/E ratio of 14, PEG (growth) of .99. The PEG shows that shares of cisco are a little undervalued at the moment, and the P/E is in normal area. As far at debt goes, Cisco has total debt of $15B but the debt/equity is at 34. Essentially, what this means is Cisco has for every $34 of debt, $1 of equity. This is a bit on the higher end of the spectrum, but Cisco is a stable company that will be able to pay off the debt. Cisco has pretty solid fundamentals which is giving the stock an undervalued look at this point in time.
Trade: Buy Cisco as a long term trade. Look for the long term view and ignore the current headwinds.
Disclosure: positions held in CSCO
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
As Wall Street becomes more and more bearish on Cisco, it could be time to pick up some shares at a cheap price of $19.61. Cisco is a great value play if you are looking for a top tier tech stock that is temporally seeing some headwinds. They have experienced issues in the past that they were able to bounce back after they looked to innovate their products and expand their markets.
Cisco will do as it has done before, innovate. Find a new way to market their product, expand their market more rigorously in emerging countries. That's right, Cisco has a growth rate of 12% for fiscal 2011 and 17% growth over next 5 years. Much of this growth will come from emerging markets that are looking to update servers and networks.
On a more fundamental level, Cisco has a P/E ratio of 14, PEG (growth) of .99. The PEG shows that shares of cisco are a little undervalued at the moment, and the P/E is in normal area. As far at debt goes, Cisco has total debt of $15B but the debt/equity is at 34. Essentially, what this means is Cisco has for every $34 of debt, $1 of equity. This is a bit on the higher end of the spectrum, but Cisco is a stable company that will be able to pay off the debt. Cisco has pretty solid fundamentals which is giving the stock an undervalued look at this point in time.
Trade: Buy Cisco as a long term trade. Look for the long term view and ignore the current headwinds.
Disclosure: positions held in CSCO
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Saturday, November 20, 2010
Stock Showdown: GM vs. Ford
GM (GM) returned to the Wall Street scene on Wednesday priced at $33 with about half a billion shares, the largest IPO in US history. The stock has risen about 4% since Wednesday and there is a huge bull sentiment on the stock. A huge catalyst for this sentiment was GM's better than expected 3Q earnings last week. The two analysts that are covering GM recommend a "strong buy" with a median target (price target over next 12 months) of 46.25.
With all of this attention going to GM, whats new with Ford (F)? Ford fell 4% on GM's debut, but managed to come come back 1% yesterday. Ford did not deserve the whipping on Wednesday, its just that its not "hip" right now with the coming of GM.
Although GM posted great 3Q earnings, I am going to need to see more quarters like that before I can fully endorse it. Ford has already recovered and it shows in the high customer satisfaction surveys, great sales and revenue and just overall has their organization better. Its their organization that helped them succeed in 2008.
Summary: GM's IPO is over hyped especially when their earnings are just now getting stronger. Not to mention over hyped IPOs tend to fall pretty hard once the hype goes away, so beware of that in the coming weeks. Ford on the other hand has had great success for a while now and needed no government assistance what so ever during 2008. GM has to prove that it can outperform again before I can get behind it .
Trade: Buy Ford (F)
Discloser: No positions at time of writing
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
With all of this attention going to GM, whats new with Ford (F)? Ford fell 4% on GM's debut, but managed to come come back 1% yesterday. Ford did not deserve the whipping on Wednesday, its just that its not "hip" right now with the coming of GM.
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| Chevy Camaro |
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| Ford Shelby Mustang |
The real question: Is GM's stock a buy or Ford's stock a buy?
Firstly, Ford was Invest Chief's Stock of the Month last month and it posted positive gains for us. The stock went as high as 17.42 but in the recent headwinds pulled back. I believe in Ford because they properly weathered the downturn without any government assistance. Not to mention Ford has been outselling all other major brands in the last few months, while GM is in 2nd and 3rd place. GM was hit very hard during the downturn and left the NYSE, bankrupt. GM was known as "Government Motors" because the government had and still has a huge stake in the company.
Although GM posted great 3Q earnings, I am going to need to see more quarters like that before I can fully endorse it. Ford has already recovered and it shows in the high customer satisfaction surveys, great sales and revenue and just overall has their organization better. Its their organization that helped them succeed in 2008.
Summary: GM's IPO is over hyped especially when their earnings are just now getting stronger. Not to mention over hyped IPOs tend to fall pretty hard once the hype goes away, so beware of that in the coming weeks. Ford on the other hand has had great success for a while now and needed no government assistance what so ever during 2008. GM has to prove that it can outperform again before I can get behind it .
Trade: Buy Ford (F)
Discloser: No positions at time of writing
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Wednesday, September 22, 2010
Update on Silver Weaton Trade---9/22/10
10:20 ET: Silver Weaton is up this morning about $.48 or 1.91%. SLW is just rising with the rest of the market and its overwhelming optimism surrounding the stock. I recommend you get into the trade now at a discounted price. Again the trade is SLW Oct 26 Puts. Buy them now at a discount and watch them rise over the next few weeks, making you a nice profit.
Check back for more updates as they occur.
Check back for more updates as they occur.
Tuesday, September 21, 2010
Silver Weaton Corp----Time to Short!
Silver Weaton (SLW) purchases and mines for silver and other precious metals. Silver Weaton has had a nice run, over 67% YTD gains. They have reported record quarters and management has certainly been doing a great job. I like Silver Weaton as a stock and a company...just not at the moment.
SLW is wayyy overbought and should be giving back gains in the very near future. If you examine the technicals, this stock is ripe for a fall....which it did today but regained with the Fed's announcement. This is a huge opportunity to purchase SLW Oct 26 Puts.
Here is why SLW is overvalued:
As you can see, SLW is wayy overvalued and will be headed lower. I recommend buying SLW Oct 26 Puts. These will provide you with some very nice gains within the next few weeks when Silver Weaton takes a fall.
SLW is wayyy overbought and should be giving back gains in the very near future. If you examine the technicals, this stock is ripe for a fall....which it did today but regained with the Fed's announcement. This is a huge opportunity to purchase SLW Oct 26 Puts.
Here is why SLW is overvalued:
- RSI is at 71.66--overbought territory
- MACD is at a ridiculous 1.186--huge signal of overbought status
- Williams%R is at -12.65---again way overbought
- Slow Stochastics is at 85.39--overbought
- Lots of recent buying activity
As you can see, SLW is wayy overvalued and will be headed lower. I recommend buying SLW Oct 26 Puts. These will provide you with some very nice gains within the next few weeks when Silver Weaton takes a fall.
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Thursday, September 16, 2010
RIM is a Dead Stock
Interesting, I stumbled upon this video that is harping the same things I am telling you about Research in Motion (RIMM).
1. It is losing market share!
2. RIM doesn't listen to what consumers want
3. Competition is way ahead of RIM and is too powerful at this point.
I recommend buying longer term put options because of the lack of competitive edge, as well as the 3 reasons above.
1. It is losing market share!
2. RIM doesn't listen to what consumers want
3. Competition is way ahead of RIM and is too powerful at this point.
I recommend buying longer term put options because of the lack of competitive edge, as well as the 3 reasons above.
Monday, September 6, 2010
Citigroup: Time to Buy?
I was checking around financial website on this nice labor day weekend and I stumbled upon an interesting video from thestreet.com. It was about Citigroup (C) and how analysts aren't very found of it at the moment. The best example of this nonsense is analyst Michael Mayo. He is upset with Citigroup because the company has declined to meet with him. Now Mayo is accusing Citigroup of not meeting with him because he is bearish on the stock. This is all just ridiculous and a waste of time.
The important aspect of Citigroup is that a number of hedge funds are reportedly cashing out of Bank of America (BAC) and buying up Citigroup shares. The reason is Citigroup is currently restructuring its banking services here in the US, as well as expanding their business into China. Citigroup plans to double its workforce in China over the next couple of years.
Its this aggressive expansion that has hedge funds buying up the $4 stock. Its going to take some time for its US business to rebound but in the mean time, its international business is doing very well. Invest Chief recommends a buy for Citigroup and we expect the stock to double buy the end of 2011.
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
The important aspect of Citigroup is that a number of hedge funds are reportedly cashing out of Bank of America (BAC) and buying up Citigroup shares. The reason is Citigroup is currently restructuring its banking services here in the US, as well as expanding their business into China. Citigroup plans to double its workforce in China over the next couple of years.
Its this aggressive expansion that has hedge funds buying up the $4 stock. Its going to take some time for its US business to rebound but in the mean time, its international business is doing very well. Invest Chief recommends a buy for Citigroup and we expect the stock to double buy the end of 2011.
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
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