Top 10 Diversified Bank Companies To Buy For 2015


Next Monday, Netflix (NASDAQ: NFLX  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. 

Few stocks have given investors a bumpier ride over the past several years than Netflix, which went from euphoria to heartbreak in late 2011 only to post huge gains over the past quarter. Now that investors are excited again, can Netflix deliver the results they want? Let’s take an early look at what’s been happening with Netflix over the past quarter and what we’re likely to see in its report.


Stats on Netflix

Analyst EPS Estimate

$0.18

Year-Ago EPS

($0.08)

Top 10 Diversified Bank Companies To Buy For 2015: CSG Systems International Inc.(CSGS)

CSG Systems International, Inc. provides business support solutions primarily to the communications industry. Its suite of solutions comprises Advanced Convergent Platform, a billing and customer care, and business optimization platform; Singleview suite, an integrated customer care, billing, and real-time rating and charging solution; Total Service Mediation (TSM) framework supports offline, and real-time mediation requirements, as well as service activation; and Wholesale Business Management (WBM) solution, a wholesale settlement and routing solution that handles various types of traffic consisting of voice, data, and content. The company?s solutions also include customer interaction management solutions that deliver interactive voice, SMS/text, print, email, Web, and fax messages on behalf of clients; analytics and intelligence services suite delivers an approach for enhancing the customer experience, increasing sales opportunities, and optimizing business; and Content Direct solutions, which enable content providers to manage subscriber preferences and offer digital content. It also licenses software products, such as WBM solution, TSM, and Singleview products; and offers professional services to implement these software products. The company also provides its services to financial services, healthcare, utilities, entertainment, and content distribution industries. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1994 and is headquartered in Englewood, Colorado.


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 CSG Systems International (Nasdaq: CSGS  ) , whose recent revenue and earnings are plotted below.

  • [By Rich Duprey]

    Telecom industry services provider CSG Systems (NASDAQ: CSGS  ) announced today that it would initiate the payment of a quarterly dividend to investors, marking the first time in company history it has done so.

Top 10 Diversified Bank Companies To Buy For 2015: Exelis Inc (XLS)


Exelis Inc. (Exelis), incorporated on May 4, 2011, is engaged in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) related products and systems and information and technical services, which the Company supplies to military, government and commercial customers in the United States and globally. The Company’s customers include the United States Department of Defense (DoD), including the United States Army, Navy, Marines and Air Force, and its prime contractors, the United States Government intelligence agencies, National Aeronautics and Space Administration (NASA), Federal Aviation Administration (FAA), allied foreign governments and domestic and foreign commercial customers. As a prime contractor, subcontractor, or preferred supplier, the Company participates in many high priority defense and non-defense programs in the United States. In January 2013, it acquired C4i Pty. Ltd. In February 2014, Exelis, Inc purchased FareSight , ARC’s Web-based tool for corporate air travel optimization.


The Company operates in two segments: C4ISR Electronics and Systems, and Information and Technical Services. The Company’s C4ISR Electronics and Systems segment provides communications, electronic warfare, imaging and image-processing, radar and sonar systems, space systems, and aerostructures for government and commercial customers globally. The Company’s Information and Technical Services segment provides a range of systems integration, network design and development, cyber, intelligence, operations, sustainment, advanced engineering, logistics, space launch and range-support solutions for a range of the United States military and government agency customers. The Company has successfully completed and integrated several acquisitions over the last five years, which has broadened its product and technology portfolio and expanded its customer base.


C4ISR Electronics and Systems

Integrated Electronic Warfare Systems (IEWS) is a Electro! nic Warfare Countermeasures (ECM) and engaged in space microelectronics, mine-defense solutions and antennas. IEWS develops, produces and sells electronic warfare solutions to DoD services, classified customers and to allied nations. IEWS is a key player on platforms, such as the strike fighter, the F-18, and Special Operations Forces (SOF) MH-60s and MH-47, and also holds electronic warfare positions on the B-1B, B-52, CV-22, C-130 and F-16 (International) platforms. The Company is a provider of mechanical and combined influences mine sweeping devices to the United States Navy. IEWS is engaged in Airborne Electronic Attack (AEA), fielding systems on the B-1, B-52, F-16, F-18, SOF C-130s and the EA-6B. Communication Systems and Force Protection Systems (CFPS) is a engaged in the design and manufacture of radio frequency (RF)-based systems. The business has fielded more than 25,000 CREW Vehicle Receiver/Jammer (CVRJ) systems, in use by the United States Army, Marine Corps, Na vy and Air Force. The Company also specializes in tactical, satellite, wireless and special mission communications systems; information assurance and cryptographic systems; Global Positioning Systems (GPS); mobile ad hoc networking (MANET) solutions, and integrated C3 solutions for the United States and allied forces, as well as many government agencies. Products include SINCGARS, deployed military tactical radio program globally with more than 650,000 units in use in more than 35 countries. CFPS is also the developer of the Soldier Radio Waveform (SRW).


The Company’s Night Vision and Imaging business is a engaged in image intensification, sensor fusion and digital night vision technology, integrated power and sensing devices, and decision support software and services solutions, which manage, exploit, analyze, visualize, interpret, and disseminate image related data. The Company is a developer, producer, and supplier of Generation 3 images intensification tech nology for the United States and allied military forces, as ! well as t! he federal homeland security market, and the Company is a producer of night vision products globally. The Company provides AN /PVS-14 and AN /PVS-7 ground night visions goggles and spare image intensifier tubes to the the United States military and allies, through foreign military sales, and the Company is a supplier to the United States military for the AN/AVS-6 and AN/AVS-9 aviation night visions goggle, which provides rotary- and fixed-wing pilots the ability to operate in extreme low-light situations. The Company is a supplier of the 2nd generation ENVG(O) system, the Spiral Enhanced Night Vision Goggle (SENVG), to the United States military. In addition the Company offers integrated software solutions, which scientists, defense and intelligence professionals, Geographic Information System users, researchers, and medical researches professionals use to turn complex data into useful information. The Company delivers streaming imagery and video data in an environment chall enged by information overloads.


The Company’s Intelligence, Surveillance and Reconnaissance (ISR) Systems business serves a range of government, civil and commercial customers with intelligence, surveillance and reconnaissance systems, provide actionable data, and protect property and human life. The Company’s capabilities include remote sensing payloads for ground, air and space, offering active and motion imaging, which provide data processing, exploitation, and dissemination and system performance modeling and simulation. The Company also provides solutions, which map and monitors the earth for a range of commercial and governmental users. The Company’s sensors provide the commercial resolution space-based imagery in the United States.


Radar, Reconnaissance and Acoustic Systems (R2A) provides radio frequency (RF) and acoustic surveillance sensors for both domestic and international defense customers, with a portfolio of related technology-based p roducts in the commercial area. R2A’s capabilities include d! efense su! rveillance radars, air traffic control radars, command and control, towed and hull mount sonars, tactical data links and airborne multifunction radars. The R2A business also provides electronic warfare and signal intelligence systems for reconnaissance and surveillance, with monitoring and signal processing systems and equipment for Electronic Intelligence (ELINT), Electronic Support Measures (ESM), Electronic Counter Measures (ECM) and Signals Intelligence (SIGINT) applications.


Integrated Structures (IS) is a designer and producer of aircraft-armament suspension and release equipment, weapons interface systems, and advanced composite structures and subsystems for military and commercial customers. IS is an advanced designers and manufacturers of lightweight advanced fiber-reinforced composite structures. The Company has supplied composites to aerospace prime contractors, including Boeing, Airbus, Lockheed Martin, Sikorsky and BAE Systems.

The Com pany’s Positioning, Navigation and Timing (PNT) business is a total GPS navigation systems supplier providing GPS payload, receiver and control solutions. The next generation Global Positioning System Operational Control System (GPS OCX) provide command, control and mission support for current and future GPS satellites based on a modern, service-oriented architecture, which will integrate a government and industry open system standard. The Company is providing the key navigation processing elements and precision monitors station receivers during the current phase of the GPS OCX program, which includes advanced anti-jam capabilities, and system security, accuracy and reliability.


Information and Technical Services

The Company’s Communication, Command and Control Systems (C3S) business provides systems engineering, lifecycle sustainment, logistic support, modernization, and operations and maintenance for the United States military launch, test and t raining ranges, NASA’s Ground Communications Networks and ot! her the U! nited States Government assets globally. C3S supports complex mission requirements, which covers a spectrum of support, from facilities maintenance to reverse engineering of legacy systems. Key areas of support include system engineering, sustainment, logistics, depot maintenance, software engineering and configuration management for range instrumentation, such as tracking, telemetry, optical, weather, communications, and command & control networks and systems. The Company is a contractor on NASA’s Space Communications Network Services (SCNS) contract for the Goddard Space Flight Center, which provides communications and tracking services for a range of Earth-orbiting spacecraft, such as the International Space Station. The Company operates, maintain, and sustain the communications networks and infrastructure, which supports deep space exploration missions, such as the Cassini mission to Saturn and the Mars Rovers. The Company is also the contractor for the Joint Spectrum Ce nter’s (JSC) Electromagnetic Spectrum Engineering Services contracts, where the Company provides engineering systems support, technical analysis, test support, and long-term strategic planning. C3S also provides payload processing and launch services for numerous government agencies. These systems and assets are critical to the launch range and space communications network infrastructures, including air, land and sea training range for the United States Navy, the United States Air Force space launch ranges on the United States East and West Coasts and NASA’s space ground communications networks.


The Company’s Advanced Information Systems business serves a range of federal customers in defense, intelligence and homeland security. The Company serves missions in military and national intelligence, deterrence and defenses against chemical, biological, radiological nuclear and explosive (CBRNE) threats, strategic programs and other core defense programs. The Company develops information-enabled solutions for the United States! Governme! nt customers.

Afghanistan Programs (AP) consists of two contracts with the United States Army Corps of Engineers to provide facilities operations, maintenance and training services for the Afghan National Security Forces (ANSF) and the Combined Security Transition Command in both Northern and Southern Afghanistan (ANSF Facilities Support programs). Under these two contracts, AP provides operations and maintenance support for more than 300 ANSF locations in Afghanistan, while simultaneously training Afghans to assume responsibility for the facilities at the completion of the contract. AP also supports the warfighter under the Logistics Civilian Augmentation Program (LOGCAP), which provides logistics and supply operations, airfield operations and transportation support to the United States warfighter and to the Afghanistan National Security Forces.


The Company provides the FAA with engineering expertise and full system solutions in the development and implementation of a modernized air traffics system. The Company’s core program is the ADS-B system: the cornerstone program of the FAA’s Next Generation Air Transportation System (NextGen) initiative to modernize from a ground-based system of air traffic control to a satellite-based system of air traffic management. As a contractor on ADS-B, the Company is designing, building and operating a nationwide system of radio communications, telecommunications networks, information technology and software to deliver accurate, networked, real-time surveillance data to the automated systems of the FAA. The Company is developing concepts under the Systems Engineering 2020 (SE2020) contract. The work spans all dimensions of a national effort to transform air traffic control, including ground systems, avionics, aircraft, air traffic control rules and procedures, human factors, safety and security, environmental processes and standards.


Middle East Programs (MEP) provides o versight and management for the Company’s teams working in t! hat regio! n. The core capabilities of the MEP include logistics, vehicle maintenance and repair, facility and utilities maintenance and repair services, civil engineering, minor construction, transportation services, base operations, guard services, and emergency fire and life support services. MEP also maintains a range of equipment, from small arms to Patriot missiles, performing maintenance tasks both domestically and overseas. Logistics services also include transport of soldiers and equipment for combat operations. The Company’s vehicle maintenance and repair contract is its Kuwait based Army Preposition Stock-5 (APS-5 Kuwait) contract.


The Communications and Information Systems (CYBER) business supports a range of the United States and Joint Forces military activities, as well as Federal civilian communications infrastructures globally, ranging from wideband satellite communications systems to network operations and management services. CYBER’s capabilities include network management; mobile and fixed satellite communications operations and maintenance (SATCOM O&M); help desk support; switch, node and router support; database development; engineering; furnishing and installation of communications systems; information assurance of protected military networks, and field and depot level maintenance of communications equipment. As the prime contractor for the United States Army Network Command’s Total Army Communications for Southwest Asia, central Asia and Africa program (TACSWACAA), CYBER maintains operational availability and information security for network resources in the battlefield network ever deployed. For the United States Southern Command, it operates and maintains tethered aerostats, which perform core drug interdiction and air sovereignty missions along the United States southern border. Communications support includes operations and maintenance for missions, such as the Defense Red Switch Network, which provides the Presiden t, Secretary of Defense, Joint Chiefs of Staff, combatant co! mmanders ! and various agencies with secure communications technology and systems.


The United States and Europe Programs is centered on logistics, base operations and infrastructure support to multiple military and governmental agencies in the United States and Europe. The business consists of supporting contracts with the United States Air Force and United States Army, including bases in the United States and Germany. The Company provides full spectrum base operating support, logistics, supply, maintenance and security to each of these installations. United States and Europe programs also focus on the nature of surface, rail and air transportation services, all life support services, as well as civil engineering and minor construction services.


The Company competes with Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, L-3 Communications Corporation, SAIC Inc., Northrop Grumman Corporation, Harris Corporation, BA E Systems, Inc., Thales Group, EADS N.V., Finmeccanica S.p.A., DynCorp, KBR and Fluor.

Advisors’ Opinion:

  • [By Michael Robinson]

    Exelis (XLS) is a leader in military technology, covering everything from surveillance to communications to advanced materials. The company became a stand-alone unit back in January 2011, when it was also spun-off from ITT Corp.

  • [By MONEYMORNING]

    Exelis Inc. (NYSE: XLS) is a leader in military technology covering everything from surveillance to communications to advanced materials.

    For instance, it has 40 years’ experience building lightweight composite assemblies used in military airplanes and helicopters. Exelis also makes night vision goggles that provide voice and data communications in a secure format.

  • [By James Brumley]

    Equity investments provide little to no consistent cash flow, so new buyers can look forward to more debt-income in the future than previous buyers have enjoyed.


    Exelis (XLS)

    12/2 Price: $17.85

  • [By Rich Smith]

    U.S. defense contractor Exelis (NYSE: XLS  ) wants to help Italian soldiers see in the dark.

    On Wednesday, Exelis announced that it has been contracted by local Italian defense contractor Selex ES to supply Selex with binocular “i-Aware” Tactical Mobility Night Vision Goggles, which Italy will then incorporate into its “Future Soldier program.”

Top 10 Diversified Bank Companies To Buy For 2015: Caplease Funding Inc (LSE)


CapLease, Inc. operates as a real estate investment trust (REIT), focused on financing and investing in commercial real estate that is net leased primarily to single tenants with investment grade or near investment grade credit ratings. It provides private and corporate owners of net lease real estate with equity, debt, and mezzanine financing options. The company is organized to qualify as a REIT for federal income tax purposes and accordingly it distributes at least 90% of its taxable income to its stockholders. Capital Lease is based in New York City.

Advisors’ Opinion:

  • [By Inyoung Hwang]

    Berkeley Group Holdings Plc (BKG) surged 8.3 percent after saying first-half profit rose 22 percent. London Stock Exchange Group Plc (LSE) climbed 2.4 percent after Bank of America Corp.’s Merrill Lynch unit recommended buying the stock. Givaudan SA (GIVN) lost 1.3 percent after Nestle SA said it will sell $1.27 billion of shares in the world’s largest flavorings maker.

  • [By Brian Louis]

    Schorsch’s company had about $15 billion in pending acquisitions at the end of last month, including Phoenix-based Cole, according to Bloomberg Industries. American Realty agreed in May to purchase CapLease Inc. (LSE) for about $2 billion, and in July said it would acquire American Realty Capital Trust IV in a transaction it values at $3.1 billion. The deal for New York-based CapLease is scheduled to be completed this week.

  • [By Nandini Sukumar]

    London Stock Exchange Group Plc (LSE) hired Brian Schwieger from Bank of America Corp.’s Merrill Lynch unit, three people with knowledge of the plans said.

Top 10 Diversified Bank Companies To Buy For 2015: Avago Technologies Limited(AVGO)

Avago Technologies Limited engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. Its product portfolio comprises RF amplifiers, RF filters, RF front-end modules, ambient light sensors, light emitting diodes, low noise amplifiers, mm-wave mixers, optical finger navigation products, diodes, fiber optic transceivers, serializer/deserializer ASICs, motion control encoders and subsystems, optocouplers, and optical mouse sensors. The company?s products are used in cellular phones, consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, renewable energy and smart power grid, factory automation, displays, optical mice, printers, voice and data communications, keypad and display backlighting, backlighting control, base stations, storage area networking, in-car infotainment, lighting, motor controls, power supplies, and optical disk drives applications. It markets its produ cts through a network of distributors and its direct sales force worldwide. The company sells approximately 6,500 products to original equipment manufacturers of wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computing peripherals markets. Avago Technologies Limited was founded in 2005 and is based in Singapore.


Advisors’ Opinion:

  • [By Riddhi Kharkia] a promising investment at the end of last year, and the company has delivered on it so far in 2014. Since the beginning of 2014, the stock has surged nearly 38% on the back of growing smartphone markets. But this stellar performance has made Avago shares expensive at 29 times trailing earnings, while the dividend yield has come down to 1.70%.

    Moreover, the stock is trading close to its 52-week high, and Avago investors might be wondering if the stock is worth holding on to anymore. Well, the answer is that it is. Avago’s key clients Apple (AAPL) and Samsung (SSNLF) are going to take the smartphone war to the next level this year. Since Avago plays from both sides, there’s a high probability that it will see solid revenue and earnings growth this fiscal year as well.

    Smarter phones for smart people

    Since Avago’s wireless communications business accounts for half of its top line, the boost that it is supposed to receive from Apple and Samsung will play a big role in its financial performance. In fact, in the previous quarter, despite subdued production of Apple’s iPhones, Avago managed to increase its wireless revenue, year over year. This was down to “sustained demand from a large OEM customer,” which could be Samsung as it is ramping up production and sale of the Galaxy S5.

    Apple is expected to come into play later this year when it launches bigger iPhones. With the rumors around the launch of iPhone 6 gaining strength with every passing day, it is expected that the next iPhone product from Apple will include revolutionary features and break company’s previous sales records. Apple was a 10%-plus customer of Avago last fiscal year as the company gained content in the iPhone.

    Now, we could be looking at a bump in the addressable market for Apple this year as it introduces bigger-sized iPhones. Additionally, Avago also supplies content for iPads and hence, it could see more Apple goodness later this year with the new iPad cycle.