Top 10 Services Stocks To Buy For 2014

TOKYO–Japan’s $1.2 trillion public pension fund should consider pairing up with an overseas fund to diversify its portfolio, and should pursue infrastructure investments, the head of government-appointed panel said Friday.

The panel’s recommendations are the latest sign of growing pressure on the notoriously conservative fund to change its investment strategy.

The six-person panel submitted recommendations to Finance Minister Taro Aso Friday suggesting working with a foreign fund using the expertise of the Development Bank of Japan would an effective approach for the Government Pension Investment Fund.

Top 10 Services Stocks To Buy For 2014: Cal-Maine Foods Inc (CALM)

Cal-Maine Foods, Inc., incorporated on September 10, 1969, is a producer and marketer of shell eggs in the United States. During the fiscal year ended June 1, 2013 (fiscal 2013), the Company sold approximately 948.5 million dozen shell eggs. Its primary business is the production, grading, packaging, marketing and distribution of shell eggs. It sells most of its shell eggs in the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States. The Company markets its shell eggs through its distribution network to a group of customers, including national and regional grocery store chains, club stores, foodservice distributors and egg product manufacturers. It sells shell eggs to a majority of the food retailers in the United States. It is also a producers and marketers of specialty shell eggs in the United States. Specialty shell eggs include cage free and organic eggs. The Company owns 100% of Benton County Foods, LLC. In March 2014, the Company acqui red 50% interests of Delta Egg Farm, LLC from Sunbest Foods of Iowa, Inc., a Moark, LLC affiliate, as result Delta Egg Farm, LLC, is a wholly owned subsidiary of the Company.

The Company markets its specialty shell eggs under various brands, such as Egg-Land’s Best, Land O’ Lake, Farmhouse, and 4-Grain. It also produces specialty eggs, such as Egg-Land’s Best, Land O’ Lake, Farmhouse, and 4-Grain. It has exclusive license agreements to market and distribute Egg-Land’s Best specialty shell eggs in major metropolitan areas, including New York City, and a number of states in the southeast and southwest. It markets cage free eggs under its trademarked Farmhouse brand and distribute those shell eggs across the southeast and southwest regions of the United States. It markets organic, all natural, cage-free, vegetarian, and omega-3 eggs under its 4-Grain trademark. It also produces market and distributes private label specialty shell eggs to several customers . Sales of specialty shell eggs accounted for approximately ! 16.4% of its total shell egg dozen volumes during fiscal 2013.

The Company’s operations are integrated. At its facilities, it hatches chicks, grows pullets, manufactures feed, and produces and distributes shell eggs. It produces approximately 95% of its chicks in its own hatcheries. It owns breeder facilities producing 18.5 million pullet chicks per year. These pullets are distributed to 42 laying operations around the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States. The facilities produce an average of 1.9 million dozen shell eggs per day and process the shell eggs through grading and packaging without handling by human hands.

Advisors’ Opinion:

  • [By Mike Deane]

    Before the opening bell on Monday morning, Cal-Maine Foods Inc (CALM) reported its third quarter earnings, posting higher revenues and earnings than last year’s same period.

    CALM’s Earnings in Brief

    CALM reported third quarter sales of $395.5 million, which were up from last year’s Q3 revenues of $360.4 million. Net income for the quarter came in at $42.9 million, or $1.77 per diluted share, up from last year’s earnings of $30.6 million, or $1.27 per share. Cal-Maine blew analysts’ EPS estimates of $1.41 out of the water.

    CEO Commentary

    CALM’s chairman, president and CEO, Dolph Baker, had the following comments: “Cal-Maine Foods delivered a solid performance for the third quarter of fiscal 2014 with our net sales up 10 percent over the same period last year. The higher sales reflect both improved volumes through the holiday season and higher average selling prices compared with the third quarter of fiscal 2013. Consumer demand for shell eggs has been strong at the retail level for both generic and specialty eggs, supported by below average temperatures across the country. In addition, the egg products segment of the industry has continued to experience strong demand due to the introduction of breakfast items at many quick serve restaurants, as well as increased exports.

    CALM’s Dividend

    Cal-Maine has been inconsistent with its dividend payments in the past, having paid its most recent dividend of 36 cents on February 13. Before that the company paid a dividend of 7 cents in November, 2013. It’s hard to predict what CALM’s next payout will be, but judging from its history of paying out higher dividends in April/May versus February, and due to its positive earnings release, CALM is likely to declare a dividend above 36 cents in the coming month.

    Stock Performance

    CALM stock was inactive in pre-market trading. YTD, the company’s stock is up 0.

  • [By Jake L’Ecuyer]

    Shares of Cal-Maine Foods (NASDAQ: CALM) got a boost, shooting up 8.61 percent to $62.46 after the company reported a rise in its fiscal third-quarter profit.

Top 10 Services Stocks To Buy For 2014: Gannett Co. Inc. (GCI)

Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.

Advisors’ Opinion:

  • [By Mike Deane]

    Early on Monday morning, Gannett (GCI) had its price target raised to $35 from $34 at FBR Capital. The ratings company also affirmed that Gannett is a “Top Pick.” 

    Gannett, a publishing and broadcasting company that operates in the U.S. and the U.K., currently has a price of $29.76, and FBR’s new target suggests an 18% upside.

    FBR analyst William Bird had the following comments about GCI’s PT raise: “Based on our analysis, we estimate that Gannett’s spectrum is worth approximately $2.2 billion, or $9 per share, roughly doubling in value from the acquisition of BLC (i.e., pre-deal valuation of ~$1.1 billion). Separately, we are lowering our 2014 EPS estimate by $0.07 to reflect the previously announced sale of three stations to MDP (note: an expected midyear close means that the stations will not be in operating results from January 1, but the proceeds will not be received until midyear). We are increasing our price target to $35 from $34 to reflect shareholder accretion from the sale. We like Gannett’s improving business mix, growth profile, and ability to drive growth with its own propeller through higher retrans, synergies, and potential TV acquisitions.”

    Gannett stock was inactive in pre-market trading. So far this year, the company’s stock is up 0.61%.

  • [By Douglas A. McIntyre]

    Traditional media sites did unusually well, given that they are not the core products of their parent companies. Broadcaster CBS (NYSE: CBS) was in 9th place at 80.9 million unique visitors in November. Comcast NBCUniversal was 14th place with 64.4 million. Gannett (NASDAQ: GCI) sites were 16th at 57 million. Viacom had 54.3 million, and ESPN 38.7 million.

Top 10 Services Stocks To Buy For 2014: Target Corporation(TGT)

Target Corporation operates general merchandise stores in the United States. The company offers household essentials, including pharmacy, beauty, personal care, baby care, cleaning, and paper products; hardlines comprising music, movies, books, computer software, sporting goods, and toys, as well as electronics that comprise video game hardware and software; apparel and accessories consisting of apparel for women, men, boys, girls, toddlers, infants, and newborns; and intimate apparel, jewelry, accessories, and shoes. It also provides food and pet supplies, including dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and pet supplies; and home furnishings and d