Investors have a unique perspective on current events, as they always have to consider the financial ramifications of what’s happening throughout the world. Sometimes, as we saw with the Greek sovereign debt crisis, the event that spurs civil unrest is itself a direct consequence of activity in the financial markets. Yet more recently, uprisings in Egypt, Turkey, and Brazil have raised concerns about the potential future economic impact if tensions continue to rise — and have stirred some opportunistic investors to try to take advantage of falling markets in those countries to find investment bargains.
Before you seek your fortune in potential hot spots around the world, though, you need to know some of the dangers involved. With your investment safety in mind, let’s take a look at the biggest risk that faces investors looking to concentrate on particular countries and what you need to do to control that risk.
The danger of thinly traded markets
Your most important concern when investing in a particular country should be figuring out how easy or difficult it will be for you to get your money into and out of its financial markets. With the rise of exchange-traded funds and other focused investment products, the days of having to find a country-specific brokerage account in order to invest are long gone.
Best Valued Stocks To Watch 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.
- [By Luke Jacobi]
Caterpillar (NYSE: CAT) gave up ground after the company reported slow North American growth and continued declines in Asia and Europe.
Home Depot (NYSE: HD) reported that it has removed all malware from its systems late Thursday. A dollar amount was not put on expected losses, but the company warned expenses could be high.
- [By Ben Levisohn]
Shares of Joy Global have dropped 1.4% to $62.98 at 10:48 a.m. today, while Caterpillar (CAT) has fallen 0.3% to $108.25, Manitowoc (MTW) has declined 0.3% to $28.34 and Terex (TEX) is off 0.3% at $37.22.
- [By Jayson Derrick]
Analysts at Tigress Financial upgraded Caterpillar (NYSE: CAT) to Neutral from Underperform. Shares lost 1.25 percent, closing at $103.38.
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- [By Jayson Derrick]
Caterpillar (NYSE: CAT) will purchase $2.5 billion of its common stock under an accelerated stock repurchase transaction. Shares gained 0.52 percent, closing at $104.69.
Best Valued Stocks To Watch 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 .
- [By reports.droy]
In a recent article from the Financial Times, GE’s Oil and Gas division head Lorenzo Simonelli stated that the company had started to become a major player in the oil and gas industry, taking market share from the “big four” in the industry- Schlumberger (SLB), Halliburton (HAL), Weatherford (WFT) and Baker Hughes (BHI). Although it still remains smaller than the big four it does have a promising future ahead.
- [By Holly LaFon]
For the 12-month period ending June 30, 2014 the Russell 3000® Index rose 25.22%. The Davis Opportunity Fund significantly outperformed the Index over this shorter time period as well.1 On a sector basis, consumer discretionary and information technology were the leading contributors to performance. Individual contributors for this period included Google (GOOG), (GOOGL), (a global leader in online search), Wells Fargo (WFC), (a U.S.-based financial services firm), Schlumberger (SLB), (a leading global energy services company), UnitedHealth Group (UNH), (the largest health care insurance business in the United States), Vipshop Holdings (VIPS), (a Chinese online retailer), and Textron (TXT), (a U.S.-based industrial conglomerate).2 Detractors included Experian PLC (EXPN), (a leading global consumer credit bureau), Angie’s List (a U.S.-based online small business ratings service), and Amazon.com (AMZN), (a U.S.-based global e-commerce business).
- [By Ben Levisohn]
Schlumberger (SLB) has become the latest company to say that it will get hit by Russian sanctions on U.S. companies today.
Sterne Agee’s Stephen Gengaro and Ivan Suleiman assess the potential impact:
Schlumberger expects that the economic sanctions in Russia will have a small financial impact on Schlumberger’s Russian operations. The company estimates that it could be up to $0.03 per share due to a short-term impact in operational efficiencies and costs in Russia.
Schlumberger remains confident that it can support its Russian clients without material disruption and will continue to work closely with its Russian customers.
Although other large-cap service companies have exposure to Russia, we believe the effect is also minimal. Specifically, Weatherford (WFT) has noted that the Russian sanctions are not a concern as this is a very small portion of its business. In addition, this business is not impacted by the sanctions which are against Arctic and shale-related technologies. We estimate that Weatherford’s revenue in Russia is less than 3% of our estimated 2014 revenue.
Other companies with large exposure to Russia include Nabors Industries (NBR), Halliburton (HAL) and Baker Hughes (BHI).
RBC’s Kurt Hallead and Robert Pinkard use the occasion to assess the potential impact on Schlumberger from Iraq instability:
We estimate roughly $600mn in annual Iraq revenue ($0.06-$0.08 in EPS) for Schlumberger with operating margins of ~20%. The situation due to political unrest is still very fluid in the country and EPS impact at this point is unknown.
We are risk adjusting the next 6 quarters which we believe could be characterized by activity disruptions, higher security expenses and unabsorbed fixed costs.
Hallead and Pinkard lowered their 2014 earnings-per share forecast to $5.56 from $5.64, and cut their 2015 prediction to $6.63 from $6.70. They did, however, leave their pric
- [By Dimitra DeFotis]
The market seems to be showing fatigue particularly with positive onshore oil service data points that may no longer seem incremental. Investors have become especially focused on potential issues and macro concerns. We believe this phase of enhanced risk perceptions will pass and still recommend owning selective stocks based on attractive valuations and healthy fundamentals. Of the 16 oilfield services companies having reported their quarters to date, the share price changes have at times been difficult to tie to specific results. … Five of the 12 companies who have beaten earnings expectations have seen their share prices drop on the day, including Basic Energy Services (BAS) (-9.0%), Baker Hughes (BHI) (-2.5%), National Oilwell Varco (NOV) (-1.5%), Oceaneering (OII) (-4.2%), and Schlumberger (SLB) (-2.0%). Other stocks beating expectations have traded higher as expected, including Cameron International (CAM) (+4.1%), FMC Technologies (FTI) (+3.1%), Mitcham In dustries (MIND) (+3.8%), Nabors Industries (NBR) (+1.2%), Patterson-UTI Energy (PTEN) (+1.8%), RPC (RES) (+8.4%), and Weatherford International (WFT) (+2.3%). Companies which have missed have universally seen their share prices decline, including Diamond Offshore Drilling (DO) (-4.3%), Gulfmark Offshore (GLF) (-0.1%), and Hercules Offshore (HERO) (-6.9%). Halliburton (HAL) was in line and flat on the day.
Best Valued 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.
- [By MONEYMORNING.COM]
Retail Stocks to Watch No. 4: Family Dollar Stores Inc. (Nasdaq: FDO)
One-year retail sales growth: 11.4%
Total 2013 U.S. sales: $10.4 billion
The poor economy has been good to Family Dollar, which has gained customers seeking the lowest possible prices. To accommodate such demand, FDO added 1,000 new items, many of them groceries. It also added 506 new stores to bring its total to 7,916. Although it has agreed to sell itself to Dollar Tree Inc. (Nasdaq: DLTR) for $8.5 billion, Dollar General Corp. (NYSE: DG) keeps making new offers. FDO is up 36.8% over the past three months as a result. FDO closed at $80.22.
- [By reports.droy]
As the competitive ground in dollar-stores intensifies in the U.S., the No. 3 dollar-store, Dollar Tree (DLTR), first placed a bid to acquire Family Dollar for $8.5 billion. This created some tension among the top brass of Dollar General who placed a counter-bid of $9 billion (excluding debt) for Family Dollar – knowing well that if Family Dollar accepted the bid, then it would become a giant with over 13,000 stores in North America with the revenue swelling to over $18 billion.
Best Valued Stocks To Watch 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.
- [By James Brumley]
CSCO stock might be one of the market’s dark-horse stories of 2014; the dividend yield is the icing on the cake.
Dividend Stocks to Buy: Tupperware Brands (TUP)
Dividend Yield: 3.2%
- [By Jonathan Berr]
Multilevel marketing (MLM) groups such as Herbalife operate through independent sales representatives, who earn money both through the sales of product and by recruiting other people to join their team. This business model — which is used by scores of companies, including Pampered Chef, which is owned by Warren Buffett’s Berkshire Hathaway (BRK.B), Tupperware (TUP) and Mary Kay Cosmetics — is legal provided that actual products are sold.
- [By Johanna Bennett]
Corporate earnings took a back seat today to the Fed’s latest policy decision. Still, quarterly financial results, and other news sent shares of McCormick & Co. (MKC) and Tupperware (TUP), falling during regular market hours Here’s a rundown of several of today’s moves: