Although Intel (NASDAQ: INTC ) stock may look cheap compared to the S&P 500, there's good reason for the low price tag. Between a faltering PC market, anemic revenue growth, and profitability concerns, Intel investors have a lot of things to worry about. Together, these factors certainly beg the question: Should you sell your Intel stock today?
PC sales still top dog
As exciting as it is for Intel to develop cutting-edge technology that threatens ARM Holdings' mobile computing stronghold, the company remains deeply entrenched in the PC market. Intel reported its second-quarter earnings results last week, showing that more than 63% of the company's revenue came from its PC client group segment. With worldwide PC shipments as bad as they've been, it's not surprising that investor enthusiasm would be muted toward the company's mobile computing ambitions. Simply put, it's going to take a considerably large tail to wag this dog.
Best Cheap Companies To Own In Right Now: Freeport-McMoran Copper & Gold Inc.(FCX)
Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.
Advisors' Opinion:- [By Income Hunter]
Freeport-McMoRan is down to about 40% of its 2011 high. Just like the entire gold market, the company based out and by early September began to make bullish moves. I suspect Freeport-McMoRan will grow as much as 70% when the 50-day moving average moves above the 200-day moving average.
Jefferies downgraded Alcoa (AA) and has expressed preference for Freeport-McMoRan demonstrating some of the benefits of the QE3. Along with this, operating activities are up and there was a vast improvement in accounts receivables from Q1 to Q2.
I like Freeport-McMoRan because it is an industry leader, drawing investments most likely from QE3, and an improvement of assets will lead to a substantial growth both as a short- and long-term investment.
- [By Mel Daris]
Finally shifting stateside, we have Freeport-McMoRan (FCX), a Phoenix-based company with mines throughout North America, South America, and in the Democratic Republic of Congo. The stock changes hands for $37 and pays a solid 3.30% dividend. It owns 120 billion pounds of proven copper reserves, 330 million ounces of silvers, and 34 million ounces of gold. Its mining portfolio also includes some trace elements, such as molybdenum and cobalt.
- [By Sherry Jim]
Freeport McMoRan is a copper, gold and molybdenum mining company. Cramer holds 800 shares of FCX stocks. FCX has a dividend yield of 2.51% and returned -29.50% since the beginning of this year. It has a market cap of $37.77B and a P/E ratio of 6.80. Ken Fisher invested over $400 million in FCX shares.
- [By Roberto Pedone]
One integrated mining player that insiders are buying up a huge amount of stock in here is Freeport-McMoRan Copper & Gold (FCX), which deals in the mining of copper, gold and molybdenum. Insiders are buying this stock into weakness, since shares are off by 17.5% so far in 2013.
Freeport-McMoRan Copper & Gold has a market cap of $27.5 billion and an enterprise value of $50.2 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.95 and a forward price-to-earnings of 8.92. Its estimated growth rate for this year is -23.9%, and for next year it's pegged at 27.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.29 billion and its total debt is $21.22 billion. This stock currently sports a dividend yield of 4.3%.
A director just bought 517,350 shares, or about $14.82 million worth of stock, at $28.64 per share.
From a technical perspective, FCX is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last five month, with shares dropping from its high of $33 to its recent low of $26.07 a share. Shares of FCX recently formed a double bottom chart pattern at $26.04 to $26.07 a share. Following that bottom, this stock has trended higher to $30.14 a share, but it just failed to hold above its 50-day at $28.60 a share.
If you're bullish on FCX, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $27 to $26 and then once it takes out its 50-day at $28.60 a share with high volume. Look for a sustained move or close above its 50-day with volume that hits near or above its three-month average action of 17.31 million shares. If we get that move soon, then FCX will set up to re-test or possibly take out its next major overhead resistance levels at $30.14 to $32 a share.
Best Cheap Companies To Own In Right Now: The Travelers Companies Inc.(TRV)
The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.
Advisors' Opinion:- [By Vodicka]
Shares are trading around $51.50 at the time of writing, as against their 52-week trading range of $45.97 to $64.17. At the current market price, the company is capitalized at $21.64 billion. Earnings per share for the last year were $5.29, placing the shares on a price to earnings ratio of 9.77. It paid a dividend of $1.64 (a yield of 3.20%).
Still in the memory is the financial crisis of 2008, and the mess that insurance companies like AIG managed to get themselves into. Travelers avoided that, but investors are fickle creatures and sometimes look at the short term rather than the long term. Travelers are well managed with good prospects going forward. Operating margins of nearly 13% hold well against rivals Hartford Financial Services Group (HIG) at around 10% and W.R. Berkley Corporation (WRB) at a shade under 14%. Good management should keep gross margins healthy (currently 26.5% versus Hartford’s 30% and W.R. Berkely’s 18%), and the company’s ongoing policy of share repurchases and dividend payout should continue to add value to shareholders. A good buy.
Top Tech Companies To Own In Right Now: Aegon NV(AEG)
AEGON N.V. provides life insurance, pensions, and asset management products and services worldwide. The company?s life insurance products include traditional, term, universal, whole, and other life insurance products sold as part of defined benefit pension plans, endowment policies, post-retirement annuity products, and group risk products; supplemental health insurance products comprise accidental death, other injury, critical illness, hospital indemnity, medicare supplement, and student health; specialty lines consists of travel, membership, and creditor products; and long term care insurance products for policyholders who require care due to a chronic illness or cognitive impairment. It also offers a range of savings and retirement products and services, including mutual funds, and fixed and variable annuities, savings accounts and investment contracts, segregated funds, guaranteed investment accounts, and single premium immediate annuities, as well as investment advice to individuals. In addition, the company offers employer solutions and pensions, such as retirement plans, pension plans, and pension-related products and services; investment products, including onshore and offshore bonds, and trusts; reinsurance products and solutions to life insurance and financial services companies; general insurance products comprising house, car, and fire insurance; and asset management products and services, including general account assets, unit-linked funds, and third party activities. AEGON N.V. markets its products through independent and career agents, financial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, and specialized financial advisors, as well as through online, direct, and worksite marketing. The company was founded in 1900 and is headquartered in The Hague, the Netherl ands.
Advisors' Opinion:- [By seekingalpha.com]
Shares of this life insurance company are trading at $4.25 at the time of writing, and at the low end of their 52-week trading range of $4.18 to $8.07. At the current market price, the company is capitalized at $7.50 billion. Earnings per share for the last fiscal year were $0.69, placing the shares on a price-to-earnings ratio of 6.13.
These earnings are expected to rise through the next couple of years, hitting $0.73 this year, and then rising to $0.89 the following year. AEG received Dutch government aid in the 2008 financial crisis, and has been selling operations to repay its debts. The latest sale, Guardian Life in the U.K. for $451 million, takes it a step closer to achieving this goal. It will continue to manage Guardian’s assets of £7.5 billion (approximately $11 billion).
Well on the way to achieving its target of full repayment to the Dutch government, and continuing to shed non core assets, for Aegon it is deals like the Guardian one that will push it to a better-managed profit stream. When the company has fully repaid its debts, it is likely to reinstate dividend payments. This will help the stock price near and long term.
Best Cheap Companies To Own In Right Now: DRDGOLD Limited(DROOY)
DRDGOLD Limited engages in the exploration, extraction, processing, and smelting of gold in South Africa. It holds interests in the Blyvoor mine; and the Crown gold surface tailings retreatment facility that reprocesses sand and slimes dumps, as well as involves in the surface retreatment operations. The company was incorporated in 1895 and is based in Roodepoort, South Africa.
Advisors' Opinion:- [By seekingalpha.com]
With mining assets in South Africa, the company runs operations from exploration through to smelting.
Shares are trading at $4.23 at the time of writing, toward the bottom end of their 52-week trading range of $3.96 to $6.23. At the current market price, the company is capitalized at $162.80 million. Earnings per share for the last fiscal year were $1.21, placing the shares on a price to earnings ratio of 3.49. It paid a dividend of $0.06 last year (a yield of 1.40%) which was covered over 20 times by its earnings.
It has the lowest price-to-earnings ratio of the gold mining stocks, though its share price is being held back by recent employee unrest in the region. There is room for the company to increase its well-covered dividend, and that should be attractive to income investors. With gold prices increasing, and production costs likely to remain stable, DRDGold could be a stock worth investing in for the gearing that the safe haven value of its gold reserves offers to its potential earnings.
Best Cheap Companies To Own In Right Now: Partner Communications Company Ltd.(PTNR)
Partner Communications Company Ltd. provides various telecommunications services in Israel. It offers cellular telephony services on GSM/GPRS and UMTS/HSDPA networks. The company also provides basic services, including domestic mobile calls, international dialing, roaming, voice mail, short message services, intelligent network services, content based on its cellular portal, data and fax transmission, and other services. In addition, it offers Internet services provider services that provides access to the Internet, as well as home WiFi networks; value added services, such as anti-virus and anti-spam filtering; and transmission services; and Web video on demand services, music tracks, and games. Further, the company provides voice over broadband and primary rate interface fixed-line telephone services; and data capacity services. Additionally, it offers content services comprising voice mail, text, and multimedia messaging, as well as downloadable wireless data application s, including ring tones, music, games, and other informational content; and sells handsets, phones, routers, and related equipment. The company markets its products through its sales centers, business sales representatives, traditional networks of specialized dealers, and non-traditional networks of retail chains and stores under the Orange brand name. Partner Communications Company Ltd. was founded in 1997 and is headquartered in Rosh Ha-ayin, Israel.
Advisors' Opinion:- [By Chris Stuart]
Partner Communications(PTNR) is Israel's second-largest wireless operator, but is facing fierce competition in the industry. Recent regulatory changes in the cellular market are also a major headwind for the company. The government has implemented a massive 76% cut in interconnection fees (the charges by mobile-phone operators when connecting users between networks) and lower exit penalties. The company has warned that free cash flow will likely be significantly hurt over coming quarters.
So what's there to like here? Israeli analysts at Bank Leumi believe the selloff has been overdone, saying "the market has overshot to the downside by pricing in an unreasonably pessimistic outcome to the changes in the industry."
The stock currently pays a 7.3% dividend, but that could change, given the downward pressure on cash flow. Consider this a high-risk, high-reward investment. TheStreet Ratings has a $19 price target on Partner Communications.
- [By Kevin1977]
Partner Communications Company is a mobile phone operator in Israel and its GSM network covers over 98% of Israel's population. It has also diversified its services to offer roaming, voice mail, voice messaging, color picture messaging, ringtone and game downloads, information services, and general packet radio services (GPRS) to customers as well as smartphones that run on its 3G network. Its stock is currently trading at 8.86 times earnings and sports a trendy 11.47% dividend yield. The company has a market cap of $2.96 billion & its shares are traded as American depositary receipt (ADR) on the Nasdaq stock exchange.
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