In this segment of The Motley Fool's everything-financials show,�Where the Money Is, banking analysts Matt Koppenheffer and David Hanson tell investors what they'll be reading this weekend. David plans to zero in on some recent data from Zillow to see what it means to that business, as well as some regional banks.
Matt highlights the importance of digesting some of the under-covered earnings releases.
In addition to discussing their weekend reading, Matt and David tell viewers how they feel about the market's lofty levels and how they think investors should be handling it.
There's still great opportunity left in 2013!
The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.
Top 10 Managed Healthcare Companies To Own In Right Now: Dun & Bradstreet Corp (DNB)
The Dun & Bradstreet Corporation (D&B), incorporated on April 25, 2000, is the source of commercial information and insight on businesses, enabling customers to Decide with Confidence. As of December 31, 2012, the Company�� global commercial database contained more than 220 million business records. The database is enhanced by its DUNSRight Quality Process, which transforms commercial data into valuable insight which is the foundation of its global solutions. Customers use D&B Risk Management Solutions to mitigate credit and supplier risk, increase cash flow and drive profitability; D&B Sales & Marketing Solutions to provide data management capabilities that provide marketing solutions to increase revenue from new and existing customers, and D&B Internet Solutions to convert prospects into clients by enabling business professionals to research companies, executives and industries.
The Company operates in three segments: North America (which consists of its operations in the United States and Canada); Asia Pacific (which primarily consists of its operations in Australia, Greater China, India and Asia Pacific Worldwide Network), and Europe and other International Markets (which primarily consists of its operations in the United Kingdom, the Netherlands, Belgium, Latin America and its European Worldwide Network). The Company conducts its business internationally through its wholly owned subsidiaries, majority-owned joint ventures, independent correspondents, strategic relationships through its D&B Worldwide Network and minority equity investments.
Risk Management Solutions
The Company provides traditional, value-added and supply management solutions. The Company�� Traditional Risk Management Solutions, which primarily includes its core DNBi product line, as well as reports from its database which are used primarily for making decisions about new credit applications, constituted 74% of its Risk Management Solutions revenue and 47% of its total revenue for the ye! ar ended December 31, 2012. Its Value-Added Risk Management Solutions, which constituted 20% of its Risk Management Solutions revenue and 12% of its total revenue for the year ended December 31, 2012, generally support automated decision-making and portfolio management through the use of scoring and integrated software solutions. The Company�� Supply Management Solutions, which can help companies understand the financial risk of their supply chain, constituted 6% of its Risk Management Solutions revenue and 4% of its total revenue in 2012. Risk Management Solutions accounted for 63% of its total revenue in 2012.
Effective January 1, 2013, the Company began managing and reporting its North America Risk Management Solutions business as DNBi subscription plans, Non-DNBi subscription plans, and projects and other risk management solutions.
The Company�� principal Risk Management Solutions are DNBi, various business information reports, eRAM, and D&B Direct. DNBi is the Company�� interactive, customizable online application that offers customers a subscription based real time access to its complete and up-to-date global DUNSRight information, comprehensive monitoring and portfolio analysis. It is also focused on helping more customers protect their business from risk through additions of DNBi products: DNBi Corporate, offering flexible pricing options allowing credit departments of all sizes to get data and options they need and Portfolio Risk Manager for DNBi, a module which allows DNBi users to create strategic one -click analytic reports to see risk and opportunity across their customer base. Various business information reports include Business Information Report, its Comprehensive Report, and its International Report that are consumed in a transactional manner across multiple platforms, such as DNB.com. eRAM is an enterprise solution for large global and domestic customers for automated decisioning and portfolio analytics. D&B Direct is a software application programming inter! face (API! ) that enables data integration inside enterprise applications, such as ERP, and enables master data management.
Sales & Marketing Solutions
The Company�� Sales & Marketing Solutions is a customer solution set, which accounted 29% of its total revenue in 2012. Within this customer solution set, it offers traditional and value-added solutions. Its Traditional Sales & Marketing Solutions generally consist of its marketing lists and labels used by the Company�� customers in direct mail and marketing activities, its education business and its electronic licensing solutions. These solutions constituted 30% of its Sales & Marketing Solutions revenue and 9% of its total revenue in 2012. Effective January 1, 2013, The Company began managing and reporting its Internet Solutions business as part of its Traditional Sales & Marketing Solutions set. Its Value-Added Sales & Marketing Solutions generally include decision-making and customer information management solutions, including data management solutions like Optimizer (its solution to cleanse, identify and enrich its customers' client portfolios) and products introduced as part of its Data-as-a-Service (DaaS) Strategy, which integrates the Company�� data directly into the applications and platforms that its customers use every day. The Value-Added Sales & Marketing Solutions constituted 70% of Sales & Marketing Solutions revenue and 20% of its total revenue in 2012
Internet Solutions
The Company�� Internet Solutions business provides organized and easy-to-use products that address the online sales and marketing needs of professionals and businesses, including information on companies, industries and executives. Internet Solutions, primarily representing the results of its Hoover's business, accounted for 7% of its total revenue in 2012. Effective January 1, 2013, the Company began managing and reporting its Internet Solutions business as part of its Traditional Sales & Marketing Solutions set.
T! he Company competes with Equifax, Inc., Experian Information Solutions, Inc., infoGROUP, Graydon, and Sinotrust.
Advisors' Opinion:- [By Geoff Gannon] ly doesn�� need working capital even when it grows say 3% a year or so. And some companies always need a ton of working capital like Lakeland (LAKE) or ADDvantage (AEY). How you feel about how those companies use working capital has a lot to do with whether or not you like those stocks long-term.
Then there are companies that have increased working capital very, very fast over the last decade or so ��but they��e also increased sales at a startling clip.
That�� Carbo.
Let�� look at where the difference between EBITDA and operating cash flow is coming from.
Cash flow from others as shown on GuruFocus�� 10-year financials page for Carbo ��I��l use this as a proxy for working capital changes ��was positive in only two years. And not by much. Usually, it�� been negative. Over the 10 years, that single line has added up to a negative $173 million. Wow.
Okay. Then there�� the difference between free cash flow and owner earnings. Owner earnings as you��l remember is Warren Buffett�� calculation of what a business could pay out to owners in cash at the end of the year ��if it stopped growing. But didn�� shrink. More on that later. For now, let�� look at the difference between Carbo�� depreciation and Carbo�� spending on property, plant and equipment.
Over the last 10 years, cap-ex has been: $546 million (or $425 million if you allow cap-ex to provide cash flow in certain years, this is a weird issue I don�� want to touch right now)
And over the last 10 years, depreciation has been: $201.52 million
That�� a big gap. We��e got some combination of Carbo underreporting economic depreciation by anywhere from $225 million to $350 million or so ��or we��e got Carbo investing something like $225 million to $350 million in growth.
Which is it?
Let�� check the growth angle first.
Over the last 10 years, Carbo has grown total sales by just under 18% a year. Now, I happen to
Hot Regional Bank Companies To Invest In 2014: Interval Leisure Group Inc.(IILG)
Interval Leisure Group, Inc., together with its subsidiaries, provides membership and leisure services to the vacation industry in the United States, the United Kingdom, and internationally. The company operates through two segments, Membership and Exchange, and Management and Rental. The Membership and Exchange segment offers travel and leisure related products and services to owners of vacation interests, and others primarily through various membership programs, as well as related services to resort developer clients. As of December 31, 2011, its Interval Network comprised approximately 2,600 resorts located in approximately 75 countries, as well as had approximately 1.8 million vacation ownership interest owners enrolled as members. The Management and Rental segment offers hotel, condominium resort, timeshare resort and homeowners association management, and vacation rental services to vacationers and vacation property owners. As of the above date, this segment provided management and rental services to approximately 60 vacation properties and hotels. Interval Leisure Group, Inc. was incorporated in 2008 is headquartered in Miami, Florida.
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 Interval Leisure Group (Nasdaq: IILG ) , whose recent revenue and earnings are plotted below. - [By Lawrence Meyers]
DRII stock hit the market just last year at $16.15 and now trades above $20. Only 3 analysts follow it, and earnings estimates aren�� spectacular. FY14 earnings are expected to be 92 cents, down from 96 in FY13 — but they’re also supposed to rise to $1.06 in FY15. The problem with Diamond is its debt structure. It paid $88 million on its $414 million in long-term debt last year. If it gets its interest payments refinanced, it�� worth a look because revenue growth is strong.
Interval Leisure Group (IILG)Interval Leisure Group (IILG) feels to me like it has been bought and sold many times, probably because it�� one of the oldest timeshare stocks, founded in 1976. Its 2,900 resorts are spread across 16 nations, with more than 2 million owners. It also diversifies its revenue stream by selling ownerships, and by managing and renting properties. Virtually ever major hotel chain is partnered with it.
- [By Lawrence Meyers]
Diller then spins off some of these entities into public companies, as he did with Home Shopping Network (HSNI) and timeshare company Interval Leisure Group (IILG). The company�� 52 week high was $80.64, it trades right now at $66. I�� love to make this one of my stocks to buy in the below the $50 mark, but IACI would be a bargain under $55.
Hot Regional Bank Companies To Invest In 2014: Grupo Televisa S.A.(TV)
Grupo Televisa, S.A.B., together with its subsidiaries, operates as a media company in Mexico and internationally. It operates in seven segments: Television Broadcasting, Pay Television Networks, Programming Exports, Publishing, Sky, Cable and Telecom, and Other Businesses. The Television Broadcasting segment engages in the production of television programming and broadcasting of channels 2, 4, 5, and 9; and production of television programming and broadcasting for local television stations in Mexico and the United States. The Pay Television Networks segment provides programming services for cable and pay-per-view television companies in Mexico, as well as other countries in Latin America, the United States, and Europe. The Programming Exports segment offers international licensing of television programming. The Publishing segment primarily publishes Spanish-language magazines in Mexico, the United States, and Latin America. The Sky segment provides direct-to-home broadcas t satellite pay television services in Mexico, Central America, and the Dominican Republic. The Cable and Telecom segment operates a cable and telecommunication system in the Mexico City metropolitan area. This segment provides data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network in Mexico and the United States; basic and premium television, pay-per-view, and telephone services. The Other Businesses segment engages in sports and show business promotion, soccer, feature film production and distribution, Internet, gaming, radio, and publishing distribution operations. The company was founded in 1990 and is headquartered in Mexico City, Mexico.
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 Grupo Televisa (NYSE: TV ) , whose recent revenue and earnings are plotted below.
Hot Regional Bank Companies To Invest In 2014: Standard Motor Products Inc (SMP)
Standard Motor Products, Inc. (Standard Motor Products) is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry, with a focus on the original equipment service market. The Company operates in two segments: Engine Management Segment and Temperature Control Segment. The Engine Management Segment manufactures ignition and emission parts, ignition wires, battery cables and fuel system parts. The Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories, and windshield washer system parts. In January 2014, the Company acquired the assets of Pensacola Fuel Injection, a privately-held company.
The Company�� customers consist of warehouse distributors, such as CARQUEST Corporation and NAPA Auto Parts, as well as auto parts retail chains, such as Advance Auto Parts, Inc., AutoZone, Inc., O��eilly Automotive, Inc., Canadian Tire Corporation and Pep Boys. Its customers also include national program distribution groups, such as Federated Auto Parts, Inc., All Pro/Bumper to Bumper (Aftermarket Auto Parts Alliance, Inc.), Automotive Distribution Network and The National Pronto Association, and specialty market distributors. The Company distributes parts under its own brand names, such as Standard, BWD, Intermotor, GP Sorensen, TechSmart, OEM, Four Seasons, Factory Air, EVERCO, ACi, Imperial and Hayden and through private labels, such as CARQUEST, O��eilly Import Direct and Master Pro, NAPA Echlin, NAPA Temp Products and NAPA Belden.
Engine Management Segment
The Company manufacture a line of engine management replacement parts including, electronic ignition control modules, fuel injectors, ignition wires, voltage regulators, coils, switches, emission sensors, EGR valves, distributor caps and rotors and other engine management components primarily under its brand names Standard, BWD! , Intermotor, OEM, TechSmart and GP Sorensen, and through private labels, such as CARQUEST, O��eilly Import Direct and Master Pro, NAPA Echlin and NAPA Belden. In its Engine Management Segment, replacement parts for ignition, emission control and fuel systems accounted for approximately 60% of the Company�� revenues during the year ended December 31, 2011.
Vehicles are factory-equipped with computer-controlled engine management systems to control ignition, emission and fuel injection systems. The on-board computers monitor inputs from many types of sensors located throughout the vehicle, and control a myriad of valves, injectors, switches and motors to manage engine and vehicle performance. Electronic ignition systems enable the engine to operate with improved fuel efficiency and reduced level of hazardous fumes in exhaust gases. Wire and cable parts accounted for approximately 12% of the Company�� revenues during 2011. These products include ignition (spark plug) wires, battery cables and a range of electrical wire, terminals, connectors and tools for servicing an automobile�� electrical system. The component of this product line is the sale of ignition wire sets.
Temperature Control Segment
The Company manufactures, remanufactures and markets a line of replacement parts for automotive temperature control (air conditioning (AC) and heating) systems, engine cooling systems, power window accessories and windshield washer systems, primarily under its brand names of Four Seasons, EVERCO, ACi, Hayden, Factory Air and Imperial, and through private labels, such as CARQUEST, NAPA Temp Products and Murray.
The product groups sold by its Temperature Control Segment are new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, expansion valves, heater valves, AC service tools and chemicals, fan assemblies, fan clutches, engine oil coolers, transmission coolers, wind! ow lift m! otors, motor/regulator assemblies and windshield washer pumps. The Company�� temperature control products accounted for approximately 27% of the Company�� revenues during 2011.''
The Company competes with ACDelco, Delphi Automotive PLC, Denso Corporation, Robert Bosch Corporation, Visteon Corporation, NGK/NTK, General Cable, Prestolite, United Components, Inc, ACDelco, Delphi Automotive PLC, Denso Corporation, Sanden International, Inc., Continental AG and Vista-Pro Automotive, LLC.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of Standard Motor Products (NYSE: SMP ) weren't looking up to snuff today, falling as much as 10% today after Goldman Sachs downgraded the entire U.S. auto sector and lowered its rating on Standard form "neutral" to "sell."
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