‘Timely Ten’ from IQ Trends
"High-quality stocks bought at historically low-price-to-high-yield offer the best potential for downside protection and upside appreciation," says Kelley Wright, editor of IQ Trends.
"Our 'Timely Ten' list is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years. Do we believe that all 10 will go up simultaneously or immediately? Of course not.
"Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for both growth of capital and income.
"Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or fully invested and in need of some affirmation and hand holding, The Timely Ten represents our top tenr recommendations at a given time.
"The Timely Ten consists of undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better and a track record for exemplary long-term dividend growth.
"In addition, we look for a P/E ratio of 15 or less, a payout ratio of 50% or less, debt of 50% or less, and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.
"Our current Timely Ten and there current yield are:
Abbott Labs (NYSE: ABT) -- 3.5%
Coca-Cola (NYSE: KO) -- 3.3%
Johnson & Johnson (NYSE: JNJ) -- 3.3%
United Technologies (NYSE: UTX) -- 2.6%
Chevron (NYSE: CVX) -- 3.9%
CVS Caremark (NYSE: CVS) -- 0.8%
Philip Morris Int'l (NYSE: PM) -- 4.8%
Nike, Inc. (NYSE: NKE) 33% -- 1.8%
PepsiCo, Inc. (NYSE: PEP) -- 3.2%
Becton, Dickinson (NYSE: BDX) -- 1.9%
Education Realty (EDR): Ivy league income
"All across America, college town populations are rising much faster than practically any other real estate market; that's because enrollments on a national basis are on a steady rise," says income expert Bryan Perry.
In his The Cash Machine, he looks to Education Realty Trust (NYSE: EDR), a real estate investment trust that provides high-quality student housing throughout the US.
"While it's still early to call a bottom for real estate in a number of regions -- especially in commercial properties -- one thing is for sure: Parents will give their right arms to send their kids to great colleges.
"There is a stealth bull market for apartment growth in major college towns, and rents are only going to rise in the years to come as the broader economy rebounds.
"So if there were a definition of bulletproof real estate, investing in college apartments would come to mind. It's a powerful demographic trend, and one worth investing in.
"Founded in 1964 and based in Memphis, EDR is one of the largest owners and operators of collegiate student housing communities in the U.S. Currently, EDR owns and manages 65 communities in 21 states.
"With the strength of the collegiate housing market, EDR has posted solid results in recent quarters. Most recently, the company announced that second-quarter FFO earnings of 22 cents per share, which was two cents higher than expectations.
"In addition to posting better-than-expected numbers, EDR also announced the closing of its public share offering, with 28,175,000 shares purchased.
"From the sale, EDR received about $116 million in proceeds. For the sale, shares were priced at $4.35. Now, the stock is trading back around $5 on follow-on buying. Now that's a successful secondary offering.
"In regards to dividend, EDR is not subject to federal corporate income tax, as long as it distributes at least 90% of its taxable income to shareholders -- since it is structured as a REIT. So EDR pays a quarterly dividend of $0.1025 per share, or 41 cents per year. That translates to an 8.2% yield.
"For a REIT netting 22 cents for the quarter, it's easy to see how they can support a dividend that is half as much. And the fact that EDR affirmed its outlook for the balance of 2009 signals that forward dividend payments are good money, a prerequisite of our recommendations.
"Any high-yield income-generating stock that beats estimates, pays out its dividend, conducts a 28-million-share secondary offering and trades higher has my full attention.
"Going forward, I believe EDR's FFO will continue to improve, making the current 8.2% dividend yield very attractive for purchase."
Gilead (GILD): ‘A stock for all seasons’
"Gilead Sciences (NASDAQ: GILD), one of the world's largest biotechs, is a stock for all seasons," say growth expert Alexander Green.
The investment director for The Oxford Club explains, "It's a fine company with a solid balance sheet, a recession-proof business and excellent growth prospects."
"Gilead focuses on three main areas, including cardiovascular conditions and respiratory diseases. (Many may have taken its anti-influenza drug Tamiflu, Letairis to treat hypertension, or Macugen to treat macular degeneration.)
"But Gilead's real moneymaker is its antiviral franchise. The Centers for Disease Control and Prevention recently raised its annual estimate of new HIV infection in the United States from 40,000 to 56,000.
"Of the 30 million people worldwide who are infected with HIV, more than one million of those are in the United States and 54% of those are being treated with HIV drugs.
"Left untreated, the HIV virus progresses to AIDS, an immune deficiency that leaves the body vulnerable to a host of diseases. But with the right drugs, HIV can be managed for decades as a chronic illness rather than a death sentence.
"As the dominant player in the HIV drug market, Gilead benefits when the market expands. Four out of every five treated patients take at least one of Gilead's HIV drugs.
"Like most drug companies, Gilead's sales come mostly from the United States, Europe and Japan. In regions where patients can't afford to pay for drugs, such as Africa, Gilead licenses its drugs to third parties that sell them for a fraction of the cost.
"Business at the biotech giant is already robust. Shrugging off the recession, earnings are up 31% on a 29% increase in revenue. Annual revenues are $6 billion.
"Other numbers at Gilead look good, too. Operating margins top 49%. And management is earning an impressive 50% return on equity. No wonder 92% of the stock is in the hands of institutional investors.
"So ignore all the nattering about what the economy and stock market are going to do next. Nobody knows that. Pick up some Gilead instead. It's a fine company with a solid balance sheet, a recession-proof business and excellent growth prospects."
Skyworks Solutions (SWKS)
Skyworks Solutions (<a href=http://www.zacks.com/stock/quote/swks>SWKS</a>) is well positioned to benefit from recent trends in the handset market, which are favorable for increasing dollar content for RF (radio frequency) components. There is a significant growth opportunity in the handsets markets propelled by the launch of 3G networks in China. <p> The company has tie-ups with major OEMs (original equipment manufacturers) that underscore its success in gaining market share. The company is also making good progress in the linear business with WLAN wins at Intel and Broadcom. <p> Results for the June quarter were better than expected, with earnings per share beating the Zacks Consensus Estimate. Management provided a strong forecast for the coming quarter. Our long-term recommendation for Skyworks is Outperform.Valero Energy (VLO)
We reiterate our Underperform rating for Valero Energy (<a href=http://www.zacks.com/stock/quote/vlo>VLO</a>) shares as a combination of weak demand, excess production capacity and narrowing crude quality spreads are expected to weigh on near-term margins. <p> In addition to the near-term margin issues, commissioning of new refineries and extension projects indicate future struggle as global demand for almost all fuel products (except gasoline) is trending down. <p> The medium- to long-term outlook also remains cloudy, with unfavorable regulatory changes (growing biofuel mandates) weighing on demand growth and limiting margin gains. Being the largest independent refiner, Valero remains particularly exposed to this unfavorable macro backdrop.EV Energy Partners Announces Appalachia Acquisition
HOUSTON, TX--(Marketwire - September 29, 2009) - EV Energy Partners, L.P. (
The acquisition is expected to close by late November 2009, and is subject to customary closing conditions and purchase price adjustments.
John Murphy: PHARM HOLDERS REACH 52-WEEK HIGH — ABBOTT LABS GAPS HIGHER ON ACQUISITION NEWS — WYETH HITS THREE-YEAR HIGH — BRISTOL MYERS SQUIBB NEARS BULLISH BREAKOUT — WATSON PHARMACEUTICALS HITS FIVE-YEAR HIGH
At the start of last week, I wrote an article about some money starting to flow into the healthcare sector. My main focus in that earlier article was on biotech stocks that were starting to attract...Oracle Buys HyperRoll
Strengthens Oracle Enterprise Performance Management to Accelerate Financial Reporting for a Faster Close
ENVIROTEK Announces Acquisition of a Nevada-Based Green Energy Efficient Power & Lighting Manufacturing Company
COSTA MESA, CA--(Marketwire - September 29, 2009) - ENVIROTEK (
ENVIROTEK President, Robert Thompson, today announced the acquisition of The Green Energy Company, a privately held commercial energy efficient products and technology distributor and manufacturer.
Metatron Closes Acquisition of Internet Payment Processor, Just Data Inc.
SAN DIEGO, CA--(Marketwire - September 29, 2009) - Metatron, Inc. (
Organized in 1999, Just Data Inc. provides flexible electronic payment solutions including credit cards, electronic checks and telephone orders, and works with any business model, including internet, broadband, wireless, call centers and retail establishments. Just Data enables online companies to accept global payments without the need to obtain and manage their own merchant account. Benefits include worldwide acceptance, multiple currencies, state of the art merchant tools, subscription and per-unit billing, world class customer service, and a full suite of marketing and revenue features.