Billionaires Warren Buffett and Bill Ackman have helped make investors serious money in the railroad industry over the past couple of years. If you missed these opportunities while trying to navigate the financial crisis, never fear: There's still time to get in on the next great railroad investment.
Back in 2010, Buffett took market leader BNSF private at a roughly 30% premium. Ackman went into activist mode at Canadian Pacific Railway in 2011 after Canada's No. 2 rail company had grossly underperformed top peer Canadian National for a number of years. For the three years prior to Ackman's Canadian Pacific stake, the stock was down 5%, while Canadian National was up nearly 70%.
Since Ackman got involved during mid-2011, Canadian Pacific has outperformed Canadian National four times. There's definitely still money to be made in railways.
Top 10 International Stocks To Invest In 2015: China Metro-Rural Holdings Limited(CNR)
China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.
Advisors' Opinion:- [By Katie Brennan]
Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.
Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.
5 Best Canadian Stocks To Watch For 2014: (AUQ)
AuRico Gold Inc. engages in the exploration, development, and production of gold and silver projects and properties in Canada, Mexico, and Australia. Its principal property includes the Ocampo mine covering approximately 15,000 hectares located in Chihuahua State. The company was formerly known as Gammon Gold Inc. and changed its name to AuRico Gold Inc. in June 2011. AuRico Gold Inc. was founded in 1986 and is based in Toronto, Canada.
Advisors' Opinion:- [By Garrett Cook]
In trading on Wednesday, basic materials shares were relative leaders, up on the day by about 0.93 percent. Top gainers in the sector included Aluminum Corporation Of China (NYSE: ACH), AuRico Gold (NYSE: AUQ), and Coeur Mining (NYSE: CDE).
- [By Garrett Cook]
In trading on Tuesday, basic materials shares were relative leaders, up on the day by about 0.13 percent. Top gainers in the sector included AuRico Gold (NYSE: AUQ), up 4.9 percent, and CF Industries Holdings (NYSE: CF), up 5.3 percent.
- [By Rich Duprey]
Gold miner�AuRico Gold (NYSE: AUQ ) announced today�its second-quarter dividend of $0.04 per share, the second dividend payment it's made since initiating the program earlier this year.�The board of directors said the quarterly dividend is payable on July 29 to the holders of record at the close of business on July 15.�
- [By Dan Caplinger]
Endeavour has also suffered company-specific issues. In January, the company lowered its production guidance for its key El Cubo mine. As Motley Fool contributor Christopher Barker noted at the time, former mine owner AuRico Gold (NYSE: AUQ ) did a poor job of managing and operating El Cubo, leaving Endeavour with a massive opportunity to refurbish and expand the mine. Yet at least in the short run, the company still faces a big challenge there, especially in light of a recent fatality of a contractor employee at the mine last month.
5 Best Canadian Stocks To Watch For 2014: Research in Motion Limited(RIMM)
Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, and Internet and Intranet-based applications and browsing. Its products and services principally comprise the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, the BlackBerry Torch, BlackBerry Curve series, the BlackBerry Style, BlackBerry Storm series, the BlackBerry Tour, BlackBerry Pearl series, and the BlackBerry PlayBook tablet. T he company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express, BlackBerry mobile voice system, and hosted BlackBerry services. Its technology also enables third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data, and third-party support programs. In addition, the company offers BlackBerry technical support services, non-warranty repairs, and nonrecurring engineering services. Further, it provides BlackBerry App World that offers BlackBerry smartphone users an electronic catalogue that aids in the discovery and download/purchase of applications directly from their BlackBerry smartphone. The company markets and sells its BlackBerry wireless solutions primarily through global wireless communications carriers, and third party distribution channels. Research In Motion Limited was founded in 1984 and is headquartered in Waterloo, Canad a.
Advisors' Opinion:- [By Geoff Gannon]
This is an important question because you may have in mind that you have a lot of faith in Apple right now. That faith may be well founded. But if you have little faith in Apple four or five or six years out ��do you really think you will be the first to spot the company's loss of leadership? Think about how quickly companies like Nokia (NOK) and Research In Motion (RIMM) saw their P/E ratios contract when investors realized just how far they were behind the competition. Do you really think you will be fast enough to spot a change in Apple's position? It�� not enough to see the writing on the wall. You have to see it faster than everyone else. You have to sell before they do.
- [By Holly LaFon] epublic Corp, one of the 50 largest publicly held insurance organizations in the nation, engages primarily in commercial lines underwriting and has a client base of leading industrial and financial services companies.
Watsa has held Old Republic shares since prior to 2007. He has not added to his holding since the third quarter of 2008, and since then the stock rarely went higher than his first quarter 2008 purchase price of almost $14. The stock dropped to an average of $9 in the fourth quarter of 2011, and he bought 5,000 more shares, bringing his total holding to 35,000 shares.
For the full year 2011, Old Republic experienced a loss of $218.5 million, compared to $40.6 million in 2010, due to two factors. The company�� general and title insurance segments turned positive for the first time since 2007, which was offset by the record-high operating losses due to dramatically increased claim costs. All of its gain in net income for the final quarter of the year was from substantially increased investment gains.
Johnson & Johnson (JNJ)
Prem Watsa has had Johnson & Johnson (JNJ) in his portfolio since prior to 2007, and it is his largest holding. Most recently, he purchased 763,000 shares in the fourth quarter of 2011 at an average of $64 per share.
Johnson & Johnson was founded in 1886 and today is one of the most comprehensive health care businesses in the world. It also has several impressive achievements that qualifies it as one of the nation�� premier blue-chip stocks: 27 consecutive years of adjusted earnings increases, 49 consecutive years of dividend increases. Johnson & Johnson stock generated 4% total return for investors over the last 10 years, compared to 1.4% for the S&P 500.
Currently, Johnson & Johnson, in partnership with Pfizer (PFE), is working on Bapineuzumab, what it calls the drug industry�� ��est chance��to delay Alzheimer��. They plan to release results of the drug�� Phase III data in the se
- [By GuruFocus] rch-In-Motion is a high-profile case as renowned investor Prem Watsa bought into the company and sits on the company�� board. The stock was traded at above $140 in 2008. It has since lost more than 95%, traded at single digits and still sinking.
Again let�� take a look at its gross margin:
While BlackBerry was a must-have in the corporate world, the profit margin of Research-In-Motion has started to decline. This was well before Apple (AAPL) released its first iPhone. Again as pointed by Adib, value investors did not buy into RIMM while it was traded at $140 because the P/E ratio then was 45. Value investors bought into RIMM while it was traded at $30-40 because the P/E ratio was at 10. This was in 2009 and the decline in profit margin had been happening for three years.
Why You Should Avoid Margin Decliners?
The reason is simple. The company is losing its price power or it never had price power. Competition is eating into its market.
Will the profit margin of these companies ever recover sustainably? That is a ��oo-hard��question. We should avoid situations where we have to answer this question.
Will these companies ever become good investments? They may. But not until they become net-nets.
The Power of Margin Expansion
On the other hand, if a company can expand its profit margin, it has a competitive advantage. A good example here is Apple (AAPL), which is the king of all margin-expanding companies:
We all know what has happened to the stock of Apple.
What�� Next?
GuruFocus will release a feature called ��arning Signs��which will warn you about the problems a company may have, including margin declines.
In the meantime, our new ��ll-In-One Screener��allows you to screen for the companies that can expand profit margins or those with declining margins. Those with expanding profit margins (think Apple) at reasonable prices will mostly likely be rewarding. Those
5 Best Canadian Stocks To Watch For 2014: TotalFinaElf S.A.(TOT)
TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.
Advisors' Opinion:- [By Jonas Elmerraji]
We'll start things out with a name that may come as a surprise, Total SA (TOT). Yes, the energy sector has gotten shellacked in recent months, and Total has been no exception: this $133 billion French oil and gas company is down almost 20% in the last six months. But while Total is down, it's not out yet – this stock looks ready for a reversal thanks to a classic technical price pattern.
Total is currently forming a "cup and handle pattern". The cup and handle is formed by a cup-shaped rounding bottom in shares that's followed up by a short-duration channel down. The buy signal comes on a move through the pattern's price ceiling at $60. A move through $60 tells us that buyers are squarely in control in IBM.
- [By Dan Caplinger]
Total (NYSE: TOT ) will release its quarterly report tomorrow, and investors have gotten a bit more upbeat about the prospects for the French oil company's stock. Yet from an income perspective, Total earnings aren't poised to deliver the growth that you'd expect in light of relatively strong price action in the oil market in recent months.
- [By Jim Jubak]
Shares of energy companies without any near-term way to take advantage of any stoppage were off, with Chesapeake Energy (CHK) down 1.2% and France's Total (TOT) off 2.31%.
- [By Paul Ausick]
What�� really interesting about this sale though, is the buyer. Rosneft will join other big oil companies like BP plc (NYSE: BP), Royal Dutch Shell plc (NYSE: RDS-A), and Total SA (NYSE: TOT) as an owner of its own oil trading desk. Rosneft already owns an oil trading business and late last year essentially borrowed $10 billion from commodity traders Vitol and Glencore to help fund Rosneft�� purchase of BP�� stake in BP-TNK. The Russian company pledged some 500 million barrels of future production to the two trading houses in exchange for the cash.
No comments:
Post a Comment