DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons. ��
Must Read: Warren Buffett's Top 10 Dividend Stocks
They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.
Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share. ��
But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.
The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.
Hot Small Cap Stocks To Watch Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Mani]
Dollar Tree, Inc. (NASDAQ:DLTR) is one of the companies that are set to exploit the ongoing trend of consumers' increasing focus on value with significant opportunity to grow its store base, and expand margins.
- [By Victor Reklaitis]
Today�� movers & shakers: Retailers have dropped in the wake of disappointing quarterly results or outlooks. Target Corp. (TGT) �was down 4% after posting weaker margins and earnings at its U.S. business, while Dollar Tree Inc. (DLTR) �dropped 4% after its earnings fell in the third quarter. Read more in the Movers & Shakers column.
- [By Rising Dividend Investing]
Falling Stock Correlation: What It Says About Consumer Spending
As we mentioned in the Take Aways from the August 26th Investment Policy Committee meeting, the correlation index has been steadily declining. In 2008-09, macroeconomic events drove nearly every stock downwards. Specific sectors and stocks moved in tandem with one another. Today, stocks and sub-industries within each sector are performing very differently – which indicates a return to a more normal stock market environment.
The Consumer Discretionary (also known as Consumer Cyclicals) sector is an example of an industry that has been rewarded for its fundamental success over the past 12 months. As a whole, the sector grew sales 6.1% and earnings 9.2% in the second quarter - much better than the 1.4% sales and 3.3% earnings growth of the S&P 500. While the overall sector did well in the second quarter, the table below shows how differently the 5 sub-categories of Consumer Discretionary performed:
(click to enlarge)
As we drill down even further, sub-categories of sub-sectors differ even more dramatically. Below is a snapshot of the Retailing sub-sector and its notable components:
(click to enlarge)
Specific stocks within each sub-category are varying in performance as well. General Merchandise retailers were significantly differentiated in the second quarter. Target’s (TGT) adjusted EPS were up 6.1% from 2012, while Dollar General (DG) and Dollar Tree’s (DLTR) earnings were up nearly 12% and 9%, respectively.
The differences in sales and earnings growth amongst these different industries tell a story. The economy is not improving enough that people feel like they can let go and spend money on pure pleasures, but it is improving enough that they can afford to replace their cars and fix the doors on their houses. As these items wear out and need to be replaced, we expect the pent up demand will drive increased economic activity from cons - [By Richard Stavros]
For example, Dollar General (NYSE: DG), the nation’s largest dollar-store chain with 11,100 locations, offered a weak profit outlook in the early part of the year after reporting weak fourth-quarter sales. And Dollar Tree (Nasdaq: DLTR), which operates about 5,000 locations, missed profit expectations for the holiday quarter in February. What has happened to the American consumer? Even McDonald�� sales were flat in April.
Top Valued Stocks To Buy Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Dan Caplinger]
The other surprise gainer was Caterpillar (NYSE: CAT ) , which some blamed for the Dow's initial drop after announcing disappointing earnings and guidance. Yet, by the end of the day, investors seemed to focus on the company's more upbeat statement of confidence and optimism about what it called the "relative stability" in the economies of the U.S. and China so far this year. That's hardly a glowing recommendation, given Caterpillar's guidance cut for 2013 earnings, but with the stock already having gotten beaten down, relieved investors bid shares up 2.8%.
- [By Dimitra DeFotis]
The S&P 500 Index climbed 0.57 points, or 0.03%, to 1,978.91 on Monday, the fourth rise in the past five trading days. The Dow Jones Industrial average rose 22.02 points or 0.13% to 16,982.59, snapping a three-day losing streak. Among the Dow’s laggards: Caterpillar (CAT), Visa (V), Microsoft (MSFT)�and Coca-Cola (KO). Dow transports were down 1.13% on the day.
- [By Rupert Hargreaves]
Caterpillar (NYSE: CAT ) and Joy Global (NYSE: JOY ) have a problem: China. No, I'm not talking about the Chinese economy here, I am in fact talking about the quality of mining equipment being manufactured within China, which has drastically improved in recent years.
- [By Travis Hoium]
Another Dow stock sinking is Caterpillar (NYSE: CAT ) , also down 1.9% after it was put on notice by short-seller James S. Chanos, who said he was shorting the stock because Caterpillar faces a lot of headwinds relating to the commodities market, where miners generate demand. If commodities demand drops in China, it will hit Caterpillar's sales and profit. The stock still pays a considerable 2.8% dividend yield and trades at just 12 times trailing earnings, but demand can swing wildly, and eventually China will have to stop its stimulus-fueled growth, which could have a big impact on demand. A short-seller's call isn't reason to dump the stock, but it may be a reminder to look at the macro picture and re-evaluate Caterpillar's prospects. �
Top Valued Stocks To Buy Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By David Smith]
It's now two to one among the big oil-field services companies regarding the North American oil and gas markets. Through Monday, Schlumberger (NYSE: SLB ) , the largest company in the sector had expressed concern about the market and its short-term prospects, while Halliburton (NYSE: HAL ) , the second-biggest member of the group, joined Baker Hughes (NYSE: BHI ) in assessing our continent's activity levels more positively.
- [By Holly LaFon]
Our worst performers during the third quarter were Cummins (CMI) (-颅14.5%), Schlumberger (SLB) (-颅13.8%) and Cognizant Technology (CTSH) (-颅8.5%). Our best performers during the quarter were EMC (EMC) (+11.1%), Berkshire Hathaway (BRK.A) (+9.2%) and Apple (AAPL) (+8.4%). During the quarter we trimmed positions in Apple as it approached our maximum position weighting of 10%. We added to existing positions in Qualcomm (QCOM), LKQ (LKQ) and Cognizant Technology (CTSH) ��all on improved prospective risk-颅reward on respective share-price declines. The Great Bull Market of 2009-2014 started on March 9, 2009 when the S&P 500 Index stood at 667. The S&P 500�� relentless bull market advance over the course of the next 2,000 days would reach a record high index level of 2000 in late August. Relentless indeed, according to Bespoke, the S&P 500 Index has been up seven quarters in a row ��the best streak since 1998 and the fourth best since 1950.
- [By David Smith]
A promising partnership
Total outlays for subsea facilities were slightly more than $25 billion in 2011. That number is expected to rocket to about $130 billion by 2020. Among several companies that will benefit from this nearly five-fold growth are Schlumberger (NYSE: SLB ) and Cameron International (NYSE: CAM ) .
Top Valued Stocks To Buy Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Dan Caplinger]
Where growth will come from
One area that Newell Rubbermaid still has to tap fully is emerging markets. The company has done a good job of expanding overseas, with 17% annual growth in Latin America. But with barely a quarter of its sales coming from outside the U.S. and Canada, the company has a lot further to go. Storage rival Tupperware (NYSE: TUP ) gets fully 60% of its total revenue from emerging markets, and it too has seen impressive gains in South America as well as the Asia-Pacific region.
No comments:
Post a Comment