If you follow the investing world at all, you've likely heard the Warren Buffett quote: "Be fearful when others are greedy and greedy when others are fearful." You can apply that to many different situations in the investing world and it will serve you well. I applied it to a situation recently in which I felt that two stocks were unfairly undervalued, and asked whether it was time to scoop up some shares while others are fearful of them? There's definitely a bearish case to be made about each stock, but I'll show you why each one has sustainable, profitable growth ahead.
First up
Ford (NYSE: F ) has long been a favorite of mine; even after its recent climb in stock price, I feel it's undervalued. In my opinion it's undervalued mainly due to the dismal outlook from Europe, which weighs heavily ��an estimated $2 billion in losses ��on the balance sheet. Here's why I think investing in Ford now could be a good play.
Growth
Its new global platforms of vehicles have been successes, every single one. The Fiesta, Focus and F-Series are all in the top six in global sales. The Fusion, which has had more success than the Fiesta and Focus in the U.S., is just now entering Europe and China. Ford will be introducing 15 models into China by 2015, expecting to double its market share as the region quickly expands. The growth story is compelling, but is profitability sustainable now?�
Top 5 Warren Buffett Companies To Own In Right Now: Investors Real Estate Trust(IRET)
Investors Real Estate Trust, a real estate investment trust (REIT), engages in the ownership and operation of income-producing real estate properties in the United States. It owns multi-family residential properties and commercial office, medical, industrial, and retail properties located primarily in the upper midwest states of Minnesota and North Dakota. As of April 30, 2008, the company operated a real estate portfolio of 72 multi-family residential; 65 office; 48 medical; 17 industrial; and 33 retail properties. Investors Real Estate Trust has elected to be taxed as a REIT under the Internal Revenue Code of 1986. As a REIT, the trust is not subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1970 and is headquartered in Minot, North Dakota with additional offices in Minneapolis, Minnesota, and Omaha, Nebraska; and Kansas City, Kansas, and St. Louis, Missouri.
Top 5 Warren Buffett Companies To Own In Right Now: Pro Minerals Inc(PRM.V)
Pro Minerals Inc. engages in the acquisition, exploration, and development of mineral properties in Ontario and Quebec, Canada. It primarily explores for gold, silver, copper, and zinc. The company principally holds interests in the Discovery Lake VMS project that consists of 36 mineral claims totaling an area of approximately 5,059 hectares and is located in the Petawanga Lake (Fort Hope) area of the Thunder Bay Mining District in northern Ontario; and the Shining Tree gold project, which consists of 1 mineral claim covering an area of approximately 72 hectares and is situated within the Abitibi Greenstone belt in Churchill Township, north-eastern Ontario. Pro Minerals Inc. was founded in 2006 and is headquartered in Vancouver, Canada.
Top 5 Insurance Companies To Own In Right Now: Comtech Telecommunications Corp.(CMTL)
Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite pac ket data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Comtech Telecommunications (Nasdaq: CMTL ) , whose recent revenue and earnings are plotted below. - [By Rich Smith]
Maybe there's something to this whole "sequestration" phenomenon after all -- because for all intents and purposes -- and certainly in comparison with recent trends -- Department of Defense spending has come to a screeching halt in recent days. On Wednesday, for example, DoD issued a grand total of three new contracts, totaling a mere Pentagon pittance of just $44.4 million.
Top 5 Warren Buffett Companies To Own In Right Now: TRW Automotive Holdings Corporation(TRW)
TRW Automotive Holdings Corp., together with its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components for automotive original equipment manufacturers and related after-markets. It operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics, and Automotive Components. The Chassis Systems segment offers product lines relating to steering gears and systems, foundation brakes, modules, brake controls, and linkage and suspension. The Occupant Safety Systems segment provides airbags, seat belts, steering wheels, and occupant restraint systems. The Electronics segment offers various products comprising safety electronics, radio frequency electronics, chassis electronics, powertrain electronics, and driver assist systems. The Automotive Components provides body controls, engine valves, and engineered fasteners and components. The company offers its products for passenger cars, light trucks, and commercial vehicles worldwid e. TRW Automotive Holdings Corp. was founded in 1904 and is based in Livonia, Michigan.
Advisors' Opinion:- [By guruek]
TRW Automotive Holdings Corp (TRW): Director Neil P. Simpkins Sold 10,273,062 Shares
Director of TRW Automotive Holdings Corp (TRW) Neil P. Simpkins sold 10,273,062 shares on 08/05/2013 at an average price of $71.34. - [By Ben Levisohn]
Cooper Tire & Rubber (CTB) has gained 1% to $24.86 today, but its trading more on whether investors expect its acquisition by Apollo Tyres to be completed. Car-part companies, however, are also exhibiting weakness today. TRW Automotive (TRW) has fallen 0.8% to $77.91, Lear (LEA) has dipped 0.4% to $74.78 and American Axel and Manufacturing (AXL) is off 0.5% to $18.99.
- [By Patricio Kehoe]
Automobile manufacturers have been performing well as of late, largely due to increasing sales pushed by a recovering U.S. economy and growing emerging markets. Auto parts suppliers, such as TRW Automotive Holdings Corp (TRW) and Johnson Controls Inc. (JCI), are bound to benefit largely from rising sales, and thus present themselves as interesting investment opportunities. However, due to their focus on different industry segments, and their current stock valuation, investing in only one of these companies makes sense.
Safety Sells
Top 5 Warren Buffett Companies To Own In Right Now: Tate & Lyle(TATE.L)
Tate & Lyle PLC provides ingredients and solutions to the food, beverage, and other industries worldwide. It operates through two units, Speciality Food Ingredients and Bulk Ingredients. The Speciality Food Ingredients unit offers starch-based speciality ingredients, including corn-based speciality starches, sweeteners, and fibres; no calorie sweeteners, including SPLENDA Sucralose; and Food Systems, which provides blended ingredient solutions. The Bulk Ingredients unit provides corn-based bulk sweeteners, industrial starches, and fermentation products primarily acidulants. The company offers its products primarily in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. Tate & Lyle PLC is headquartered in London, the United Kingdom.
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