Trend-spotting is an important skill for investors. Let’s see if we can spot the trend here:
In 1984, Continental Illinois, the seventh-largest bank in the nation, failed because it had invested too heavily in oil and gas loans.
In the 1980s and 1990s, hundreds of banks and savings & loans collapsed because they had invested too much in frothy real estate.
In 2009, Washington Mutual failed, the largest failure since Continental Illinois, because it, too, had made too many awful real estate loans.
The trend, of course, is to be as wary of banks selling loans as you would be of gift-bearing Greeks. Which brings us to today’s topic: Bank loan funds.
Banks make most of their money by taking short-term deposits and making long-term loans. Your certificate of deposit, most likely, is not sitting in the Bedford Falls Building & Loan, but has been lent to homeowners in Bailey Park — or just as likely, a local business.
5 Best Blue Chip Stocks For 2014: McDonald’s Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
- [By Douglas A. McIntyre]
And Starbucks will be nagged forever by the fact it was flanked by McDonald’s Corp. (NYSE: MCD) in the coffee business. Wall Street has not forgotten that one of America’s oldest fast-food companies trumped one of its newest ones using distribution heft, brand and a huge store chain size to stagger Starbucks within the business in which it claimed to be the leader.
- [By Jim Jubak]
If those traders are right, and food commodity prices are headed much higher, it would be bad news for consumers and for consumer companies such as McDonald’s (MCD) and PepsiCo (PEP) that have to pay higher prices.
- [By Steven Russolillo]
Gap Inc.(GPS), McDonald’s Corp.(MCD) and General Motors Co.(GM) were among other companies that cited the weather as a factor in their results and projections. Companies in the energy, consumer-discretionary and industrial sectors mentioned the weather the most on their calls, FactSet data show.
- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number CINF is trading at a discount to only 3.) above. The stock is trading at a 36.8% premium to its calculated fair value of $34.96. CINF did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% CINF earned two Stars in this section for 1.) and 2.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1954 and has increased its dividend payments for 54 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA The NPV MMA Diff. of the $62 is below the $500 target I look for in a stock that has increased dividends as long as CINF has. If CINF grows its dividend at 1.2% per year, it will take 5 years to equal a MMA yielding an estimated 20-year average rate of 3.68%. Memberships and Peers: CINF is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers™ Index and a Divid
5 Best Blue Chip Stocks For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
- [By Lee Jackson]
Apple Inc. (NASDAQ: AAPL) remains a top stock on the radar screen. Excitement over the new iPhone 6 is starting to gain traction as rumors of a larger screen and other new improvements are getting the Apple nation stirred up. Trading at just 12 times forward earnings, the stock remains a solid buy for investors. Shareholders are paid a 2.3% dividend. The UBS price target for the technology giant is $625. The Thomson/First Call consensus price target for Apple is $591.52. The stock closed Tuesday at $53122.
- [By Rahul Chattaraj]
The mighty Apple (AAPL) has greatly reaped benefits from its epic innovation –iPhone. Smartphones have been around us in various forms since early 2000. But, right from its introduction in 2007, till the present day Apple has made millions by revolutionizing the smartphone experience, the latest and the greatest contribution being made by the iPhone 5S.
5 Best Blue Chip Stocks For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
- [By Paul Ausick]
The sales big spender was Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) which posted 16 high bids, totaling just over $321 million. Chevron Corp. (NYSE: CVX) offered six high bids, totaling $106 million, followed by Murphy Oil Corp. (NYSE: MUR) with 16 high bids, totaling nearly $50 million, and Royal Dutch Shell PLC (NYSE: RDS-A) with four high bids, totaling more than $45 million.
- [By Jon C. Ogg]
Chevron Corp. (NYSE: CVX) is down some 7.4% so far year to date, but it is down 10.2% from its 52-week high of $127.83. It is trading at $114.60, and the consensus target of $129.56 implies upside of just over 13% for the oil giant. While Exxon was barely behind this one, Chevron does at least have that higher 3.5% dividend yield, and that dividend is likely to rise yet again. The company’s capex and drilling outlook failed to excite Wall Street, but that happens sometimes, and vast fields are getting harder to find at economical levels.
- [By Paul Ausick]
After falling nearly 1.2% yesterday after announcing that production would be falling and capex spending would be lower, Chevron Corp. (NYSE: CVX) trades up 0.96% today at $115.61 in its 52-week range of $109.27 to $127.83 shortly before the closing bell. Trading volume for Chevron’s shares was about 12% below the daily average of around 6.5 million shares.
5 Best Blue Chip Stocks For 2014: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is base d in Armonk, New York.
- [By Paul Ausick]
Every one of the 30 Dow stocks is trading higher about half an hour before Monday’s closing gell. International Business Machines Corp. (NYSE: IBM) has posted the largest gain today, up 1.82% at $185.55 in a 52-week range of $172.19 to $215.82 just ahead of the closing bell. Volume is on track to be about 20% below the daily average of some 5 million shares traded. IBM’s share price is second-highest among the Dow stocks.
- [By Jon C. Ogg]
Before thinking that these five are the biggest drags on the DJIA for 2014, other DJIA stocks have been dead weight for a bit longer then 2014. Shares of Cisco Systems Inc. (NASDAQ: CSCO) are down some 18% from their 52-week high, and International Business Machines Corp. (NYSE: IBM) are down some 14% from their 52-week high. Their problems began in 2014, so they are not on the year-to-date loser list of the DJIA stocks.
5 Best Blue Chip Stocks For 2014: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors’ Opinion:
- [By Lee Jackson]
Colgate-Palmolive Co. (NYSE: CL) is a top consumer staples name to make the UBS. Colgate sells its products in more than 200 countries and makes more than 75% of its revenue outside the United States, which provides geographic diversification and growth opportunities in emerging markets for the company. This diversity, matched with a huge list of consumer products, keeps revenues and dividends growing. Investors are paid a 2.3% dividend. The consensus target is $67.14. Colgate closed Tuesday at $64.34.
- [By TaniaC]
Colgate-Palmolive Company (CL) is a consumer products company whose products are marketed in over 200 countries and territories throughout the world. It operates in two segments: Oral, Personal and Home Care and Pet Nutrition.