My favorite value stock remains Warren Buffett�� holding company; its diversified operations make this stock similar to owning a mutual fund with a long history of beating the market, explains Ian Wyatt, growth stock expert and editor of $100K Portfolio.
We added Berkshire Hathaway "B" shares (BRK-B) to our $100k Portfolio in March 2011, and the stock is one of my biggest personal holdings.
Berkshire Hathaway had a record year in 2013. Sales grew by 12%, and net income soared 32%, reaching a staggering $19.5 billion. That means the company's profits stand at $1.6 billion per month! Meanwhile, the company's investments per share increased nearly 14% and now stand at $129,253.
Buffett has been aggressively looking to make big acquisitions, which he describes as "elephant hunting." Last year, Berkshire closed two such transactions. The company bought a 50% stake in H.J. Heinz for $12 billion, and purchased utility giant NV Energy for $5.6 billion.
Buffett has continued to transition investment management to Todd Combs and Ted Weschler. According to this year's shareholders letter, both of Buffett's investment successors manage a portfolio of more than $7 billion.
Top Growth Companies To Buy Right Now: Sierra Wireless Inc. (SWIR)
Sierra Wireless, Inc., together with its subsidiaries, provides cellular wireless solutions to the machine-to-machine (M2M) and connected device markets in North America, Europe, and the Asia Pacific. The company operates through two segments, Mobile Computing and Machine-to-Machine. It offers AirPrime embedded wireless modules, which are used to wirelessly enable various products and solutions by original equipment manufacturers (OEMs); and AirLink intelligent gateways that are rugged and industrial-grade wireless terminals for M2M and mobile applications to public safety, transportation, field service, energy, industrial, and financial organizations. The company�s AirVantage M2M cloud platform provides secure, scalable, and device-to-cloud infrastructure for M2M applications. It also provides professional services to OEM customers during their product development and launch process. The company offers its products to consumer electronics, networking equipment, automotiv e, energy, security, sales and payment, industrial control and monitoring, fleet management, field service, and healthcare industries. It sells its products and solutions through various indirect channels, such as OEMs, wireless operators, distributors, and value-added resellers. Sierra Wireless, Inc. was founded in 1993 and is headquartered in Richmond, Canada.
Advisors' Opinion:- [By Chris Neiger]
Making the connection
One of the biggest leaders in machine-to-machine communication, or M2M, is Sierra Wireless (NASDAQ: SWIR ) , a small-cap company that's helping usher in the Internet of Things. The company's 3G-connection module sits in Tesla's Model S sedan and helps the car connect to AT&T's�network. - [By rusticnomad]
There can't be a superior time to purchase Sierra Wireless (SWIR), the chip creator which is on track to profit from the development in Cisco's (CSCO) Internet of Things.
Hot Warren Buffett Companies To Own In Right Now: Associated Estates Realty Corp (AEC)
Associated Estates Realty Corporation (AEC), incorporated on July 29, 1993, is an integrated, self-administered and self-managed equity real estate investment trust (REIT). As of December 31, 2012, the Company�� portfolio consisted of 52 properties containing 13,950 units located in 10 states. The Company operates in one segment: multifamily properties. The Company is focused on multifamily ownership, operation, acquisition, development, construction, disposition and property management activities. Its multifamily properties provided approximately 99.4% of its consolidated revenue. In 2012, the Company acquired four properties. Three of the properties, totaling 760 units, are located in the Raleigh/Durham submarket and the fourth is a 396-unit property located in Dallas, Texas. In addition, in 2012, it acquired land for development of an apartment community in Los Angeles, California that also includes a building containing approximately 78,800 total square feet of office and retail space. In 2012, it sold six properties containing 1,356 units, one in Georgia, one in Central Ohio and four in Western Michigan. During the three years ended December 31, 2012, it acquired 11 multifamily properties.
The Company�� primary source of income is rental revenue. The Company�� subsidiary, Merit Enterprises, Inc. (Merit), is a general contractor and construction manager, which acts as its in-house construction division. In March 2012, the partnership acquired a 2.5 acre parcel of land in Bethesda, Maryland.
Advisors' Opinion:- [By Nathan Slaughter]
Shocking new data reveals that of the 5.5 million new households that will be formed between now and 2016, an estimated 3.8 million, or nearly 70%, will be renters, not homeowners according to Jeffrey Friedman, CEO of apartment REIT Associated Estates Realty (Nasdaq: AEC).
- [By Sally Jones]
Associated Estates Realty Corp. (AEC) - Yield 4.90
Associated Estates Realty Corp. is up 1% over 12 months. The company has a market cap of $764.39 million; it trades with a P/E ratio of 16.60 and P/S ratio of 4.10.
Hot Warren Buffett Companies To Own In Right Now: Community Trust Bancorp Inc.(CTBI)
Community Trust Bancorp, Inc. operates as the holding company for Community Trust Bank, Inc. that provides various banking products and services. It accepts various deposit product that include checking accounts, regular and term savings accounts and savings certificates, commercial demand deposit accounts, individual retirement accounts and Keogh plans, non interest bearing deposits, NOW accounts, money market deposits, savings accounts, and certificates of deposit and other time deposits. The company?s loan portfolio comprises residential and commercial real estate loans; commercial loans; commercial, construction, mortgage, and personal loans; and lease-financing, lines of credit, revolving lines of credit, term loans, and other specialized loans, including asset-based financing. It also provides full service securities brokerage services; annuity and life insurance products; trust services; debit cards; cash management services to corporate and individual customers; l etters of credit; safe deposit boxes; and funds transfer services. In addition, the company acts as a trustee of personal trusts, an executor of estates, trustee for employee benefit trusts, registrar, transfer agent, paying agent for bond and stock issues; and depositor for securities, as well as provides full service brokerage services. Community Trust operates 80 banking locations in eastern, northeastern, central, and south central Kentucky; southern West Virginia; and northeastern Tennessee, as well as 5 trust offices across Kentucky. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.
Advisors' Opinion:- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
NUE is trading at a premium to all four valuations above. The stock is trading at a 85.8% premium to its calculated fair value of $28.51. NUE did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
NUE earned one Star in this section for 2.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 40 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
The negative NPV MMA Diff. means that on a NPV basis the dividend earnings from an investment in NUE would be less than a similar amount invested in MMA earning a 20-year average rate of 3.68%. If NUE grows its dividend at 0.7% per year, it will never equal a MMA yielding an estimated 20-year average rate of 3.68%.
Memberships and Peers: NUE is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers
Hot Warren Buffett Companies To Own In Right Now: Questcor Pharmaceuticals Inc.(QCOR)
Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides prescription drugs for the treatment of auto-immune diseases. The company?s primary product is H.P. Acthar Gel (repository corticotropin injection), an injectable drug for the treatment of acute exacerbations of multiple sclerosis; infantile spasms in infants and children under two years of age; nephrotic syndrome; and Lupus. Questcor Pharmaceuticals, Inc. was founded in 1990 and is headquartered in Anaheim, California.
Advisors' Opinion:- [By Philip Springer]
What’s more, earnings estimates for 2014 by Wall Street analysts have increased for seven of the 10 companies over the last three months. Amgen’s are down slightly and those for Celgene and Novo Nordisk are unchanged.
Two of the 10 stocks currently are in the PF Growth Portfolio. Another, Allergan, was sold for a 75 percent long-term gain since its initial recommendation.
As of late February, the 10 stocks profiled carried market capitalizations of roughly $30 billion and up. Here are another four companies to watch: Grifols SA (NSDQ: GRFS), Jazz Pharmaceuticals PLC (NSDQ: JAZZ), Questcor Pharmaceuticals (NSDQ: QCOR) and Salix Pharmaceuticals (NSDQ: SLXP). Each of these four companies is generating rapid revenue and profit growth, and each stock carries a market capitalization of $5 billion or more.
Have a happy and safe Fourth of July weekend! - [By George Budwell]
Questcor Pharmaceuticals (NASDAQ: QCOR ) is a prime example. Despite Questcor being investigated by multiple agencies, there has yet to be a single charge brought against the company in over two years. In short, I don't see this investigation being a major risk for shareholders next year, and United looks like it will continue to outperform.
- [By Shauna O'Brien]
Goldman Sachs reported on Tuesday that it has started coverage on Questcor Pharmaceuticals Inc (QCOR).
The firm has initiated coverage on QCOR with a “Neutral” rating and $71 price target. This price target suggests a 8% upside from the stock’s current price of $65.27.
An analyst from the firm noted: “We are confident in the continued growth of Acthar by expanding further in new indications, and we believe the deal for Synacthen helped ensure the sustainability of the franchise and removed a key overhang on the stock.”
“However, given the recent very strong run in the stock and the current valuation, we’re taking a more cautious stance on risk/reward for being an aggressive buyer here. We think there are a number of factors that could cause some downward volatility in the stock, and we would be opportunistic and look for a better entry point,” added the analyst.
Questcor Pharmaceuticals shares were mostly flat during pre-market trading Tuesday. The stock is up 144% YTD.
- [By Rich Duprey]
Biopharmaceutical�Questcor Pharmaceuticals� (NASDAQ: QCOR ) �announced this morning�its second-quarter dividend of $0.25 per share, the same rate it paid last quarter after raising the payout 25%, from $0.20 per share.
Hot Warren Buffett Companies To Own In Right Now: Sprouts Farmers Market Inc (SFM)
Sprouts Farmers Market, Inc. (Sprouts), incorporated on January 27, 2011, is a specialty retailer of natural and organic food focusing on health and wellness. The Company offers fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, bakery, dairy, frozen foods, body care and natural household items. The Company�� product offerings focus on fresh, natural and organic foods. Natural foods can be defined as foods that are minimally processed and are free of synthetic preservatives, artificial sweeteners, colors, flavors and other additives, growth hormones, antibiotics, hydrogenated oils, stabilizers and emulsifiers. The Company categorize the over 7,000 range of products, it sells as perishable and non-perishable. Perishable product categories include produce, meat, seafood, deli and bakery. Non-perishable product categories include grocery, vitamins and supplements, bulk items, dairy and dairy alternatives, frozen foods, beer and wine, and natural health and body care.
The cornerstones of the Company�� business are fresh, natural and organic products. As of July 19, 2013, the Company opened 87 new stores while rebranding 43 Henry�� and 39 Sunflower stores to the Sprouts banner. The Company�� stores include Produce, Bulk Items, Vitamins and Supplements, Grocery, Meat, Seafood, Deli, Bakery, Dairy and Dairy Alternatives, Frozen Foods, Beer and Wine and Natural Health and Body Care.The Company offer its customers a farmers market open-feel environment consisting of an abundant and affordable offering of fresh fruits, vegetables and herbs, focused on appearance, flavor and value. The Company�� stores include a crafted selection of more than 450 ranges of scoopable nuts, fruits, trail mixes, grains, beans, cereals, coffee, tea, spices, candy and snacks featured in the center of the store. The Company�� stores feature more than 4,200 vitamins, supplements, natural remedies, functional food, lifestyle support, and herbal supplements. This department includes ! an extensive private label offering.
The Company�� grocery offering focuses on healthy options. The Company carries approximately 4,200 natural and organic products in its grocery aisles, including meal components, natural sodas and other beverages, snacks and bars, baking goods, baby, pet and household items such as detergent and paper towels, and earth-friendly mercantile items. The Company�� Olde Tyme Butcher Shops combine sourcing through its trusted supplier network, product variety and old-fashioned customer service. The Company offers a range of seafood favorites delivered up to six days a week. The Conpany feature a range of fresh deli specialties, including sliced deli meat, salads, dips, entrees, side dishes, fresh made to order sandwiches at value prices and an abundant selection of over 200 varieties of cheeses from around the world.
The Company��bakery offering includes artisan bread alongside a wide assortment of sandwich breads, rolls, tortillas, pitas, muffins, cookies and pies as well as sugar free, gluten free and low carbohydrate products. The Company�� dairy department features a selection of organic, natural and regionally sourced milk, yogurt (including Greek, Australian, organic, and soy-based), butter and eggs, as well as a full selection of vegan and vegetarian alternative dairy products. The Company�� freezer cases feature traditional and ethnic natural and organic entrees and side dishes, along with frozen vegetables, desserts and specialty items, such as gluten-free breads and non-dairy ice creams. The Company offers approximately 2,400 natural, cruelty-free health and beauty products, old-fashioned remedies and modern body care innovations, including facial care products and make up, skin, hair, dental, baby care and grooming products.
Advisors' Opinion:- [By Rich Duprey]
Struggling to combat inroads that new entrants such as Sprouts Farmers Market� (NASDAQ: SFM ) �are making on its turf, Whole Foods saw its same-store sales rise less than 6% in the organic grocer's fourth quarter, its slowest rate in nearly four years. In contrast, Sprouts saw pro forma comps surge 10% year over year, leading to a 24% increase in total sales from the year-ago period.
- [By William Bias]
People love organic food which contains no unnatural ingredients such as pesticides or fertilizers. �They increasingly crave food that will allow them to live healthier, longer, and cheaper due to the rising cost of health care. Organic grocery store chains Whole Foods Market (NASDAQ: WFM ) and Sprouts Farmers Market (NASDAQ: SFM ) certainly reap the benefit of this increasing consumer preference.
- [By Leslie Patton]
Whole Foods is facing increased competition from expanding organic and natural-food sellers including Fairway Group Holdings Corp. (FWM) and Sprouts Farmers Market Inc. (SFM) The chain has been adding more of its 365 private-label brand items to attract price-conscious shoppers. Sales at stores open at least a year rose 5.9 percent in the fourth quarter, which ended Sept. 29, the slowest growth in 15 quarters.
- [By Maureen Farrell]
Two other consumer companies have been among the hottest IPOs of 2013. Shares of sandwich shop Potbelly (PBPB) and organic food retailer Sprouts Farmers Market (SFM) more than doubled on their first day of trading.
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