Top 10 Cheap Stocks To Watch For 2014: Bank of America Corporation(BAC)
Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.
Advisors' Opinion:- [By Holly LaFon] Buffett bought $5 billion worth of Bank of America warrants to buy 700 million shares at $7.14 each until they expire in 2012, and perpetual preferred stock that yields $300 million a year. In his annual letter, Buffett said, ��ur warrants to buy 700 million Bank of America shares will likely be of great value before they expire.��Bank of America trades for $8.04 on Monday, giving Buffett a paper profit of $656 million already.
Bank of America had mixed financial results in 2011. Deposits declined from $13.6 billion in 2010 to $12.7 billion in 2011, as 9.6 percent of all bank customers switched banks, compared to 8.7 percent in 2010. Bank of America particularly suffered customer backlash from its attempt to raise fees in order to generate revenue. Revenue declined from $52.7 billion in 2010, to $45.6 billion in 2011. Net income increased to $1.4 billion in 2011 from a net loss of $2.2 billion in 2010.
Brian Moynihan, who Buffett extols in his shareholder letter, introduced Project New BAC, which aims to streamline the business. Phase one, which began in 2011, included the elimination of 30,000 jobs and reduction of costs by $5 billion per year by 2014. The company does not yet know where it will make reductions for Phase 2.
��t Bank of America, some huge mistakes were made by prior management. Brian Moynihan has made excellent progress in cleaning these up, though the completion of that process will take a number of years,��Buffett added in his letter.
Bank of America�� P/E, P/B and P/S ratios:
BAC pe,ps,pb Interactive Chart
JP Morgan (JPM)
Top 10 Cheap Stocks To Watch For 2014: Ur Energy Inc(URG)
Ur-Energy Inc., an exploration stage junior mining company, engages in the identification, acquisition, evaluation, exploration, and development of uranium mineral properties. The company has 13 projects located in Wyoming and Nebraska, the United States; and 3 exploration projects located in the Northwest Territories and Nunavut, Canada. Its landholdings cover approximately 90,000 acres in the United States and approximately 140,000 acres in Canada. The company was founded in 2004 and is headquartered in Littleton, Colorado.
Advisors' Opinion:- [By Louis]
Junior mining company UR-Energy Inc.(URG) has watched its stock increase 73% in the past 12 months. Currently trading at $1.64, URG has more than doubled its 52-week low of 73 cents, and is a great choice for penny stock investors.
Hot Gold Companies To Invest In Right Now: Horizon Lines Inc.(HRZ)
Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.
Advisors' Opinion:- [By Hutchinson]
Horizon Lines (NYSE: HRZ) is the largest oceangoing shipping company in the United States with a dominant market position along protected shipping lanes. One look at the steady resurgence in shipping demand, coupled with the company’s improving financials, and it seems the worst is behind them — making now the perfect time to scoop up this stock at a discount.
HRZ is up almost 30% since September, and I expect it to continue moving higher. Recent data show more goods are being manufactured, and they need to be shipped. Horizon will be one of the biggest beneficiaries.
Buy HRZ on pullbacks under $5.
Top 10 Cheap Stocks To Watch For 2014: SMTC Corporation(SMTX)
SMTC Corporation provides advanced electronics manufacturing services to original equipment manufacturers (OEMs) worldwide. The company?s services include product design and engineering services, printed circuit board assembly production, enclosure fabrication, systems integration, testing, and configuration services. It also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. The company offers its integrated contract manufacturing services to OEMs and technology companies primarily in the industrial, computing and networking, communications, consumer, and medical market segments. SMTC Corporation was founded in 1985 and is based in Markham, Canada.
Advisors' Opinion:- [By Paul]
SMTC Corp. (NASDAQ: SMTX) is a Canadian company that provides contract electronics manufacturing services, such as surface-mount and through-hole circuit board assembly, product design, testing, packaging and supply chain management. Manufacturers use products built or assembled by SMTC in their computer servers, networking devices or communications products.
In its most recent earnings report, the company said Q3 sales rose 48% in the quarter to $65.4 million, and earnings per share were 16 cents, up from 3 cents in the same quarter of 2009. Eight of its top 10 customers increased orders as a result of strong market demand for electronics manufacturing. The addition of five new clients added $10 million to the company’s sales in the quarter. SMTX’s year-over-year gross profit more than doubled to $7.9 million, as a result. Generated cash flow reached $4.6 million and the company used much of this extra cash to pay down debt. That’s why SMTX’s debt was just $18 million at the end of the quarter, the lowest level in the company’s history.
SMTX is in an excellent position to profit from increasing electronics and technology demand, which will continue to climb next year. Buy SMTX below $4.
Top 10 Cheap Stocks To Watch For 2014: Whole Foods Market Inc.(WFM)
Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.
Advisors' Opinion:- [By Dan Moskowitz]
Whole Foods has consistently improved revenue and earnings on an annual basis, it has established its own niche where it rules the organic and natural food industry, debt management is good, margins are strong for the industry, leadership is solid, and analysts love the stock: 13 Buy, 11 Hold, 0 Sell.
Top 10 Cheap Stocks To Watch For 2014: Lionbridge Technologies Inc.(LIOX)
Lionbridge Technologies, Inc. provides language, development, and testing services. Its Global Language and Content segment provides product localization services, such as creating foreign language versions of its clients? products and software applications, including the user interface, online help systems, and documentation; and content translation services, such as translating and maintaining clients? Web-based content, eLearning courseware and training materials, technical support, and sales and marketing information. It also offers technical authoring, eLearning courseware development, and production and integration of content; and global language and content services delivery. The company?s Global Development and Testing segment develops and maintains on-premise, SaaS, and smart phone and tablet applications, as well as provides Web production services. This segment also offers various testing services under the VeriTest brand, including managed test teams, test proc ess design, test automation, functional testing, performance testing, globalization testing, and product certification. In addition, it provides specialized search relevance, online content editorial, keyword optimization, and related services. Its Interpretation segment offers interpretation services for government business and healthcare organizations that require experienced linguists to facilitate communication. It provides interpretation communication services, such as onsite interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services in approximately 360 languages and dialects. The company serves the technology, mobile and telecommunications, Internet and media, life sciences, government, manufacturing, automotive, retail, and aerospace sectors in the Americas, Europe, and Asia. Lionbridge Technologies, Inc. was founded in 1996 and is headquartered in Waltham, Massachusetts.
Advisors' Opinion:- [By Vodicka]
Lionbridge Technologies (NASDAQ: LIOX) provides language, development and testing services to businesses all over the world. Its focus is on technology, and it helps its clients manage their enterprise content and technology applications, and supports those efforts with training materials, as well as sales and marketing information. By affecting optimal communication in local languages, it helps its clients capture market share, escalate adoption of their global content and products, increase the return on their enterprise application investments and boost workforce productivity. All while reducing costs! So it’s no wonder that the 10 largest software companies and the five largest Internet portals in the world use LIOX to help them internationalize their products and services.
This strong customer base helped the company weather the recession, as its top 10 customers expanded their business by more than 8% in the fourth quarter over the third quarter. This helped the company generate $11.7 million in cash flow, improve its gross profit to 33.5% and revenues grow 7% quarter over quarter. That’s definitely a great sign, especially since technology spending is taking flight, and globalization of industry is in a rapid phase of expansion. Buy LIOX under $4.50.
Top 10 Cheap Stocks To Watch For 2014: AeroVironment Inc.(AVAV)
AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.
Advisors' Opinion:- [By Chris Stuart]
AeroVironment(AVAV) sells unmanned, remote-control military aircraft and rapid-charging battery stations for electric vehicles.
The stock has fallen due to concerns over U.S. defense budget cuts. According to Benchmark Research, the company should do well because of growth in its electric-vehicle-charging business. "We will see major deployment of electric-vehicle-charging infrastructure in the coming year to support multiple electric-vehicle introductions and the White House's target of 1 million EV by 2015."
AeroVironment was recently named to a list of stocks by Goldman Sachs that have a 15% probability, or better, of being acquired. Shares of AeroVironment rocketed 20% Wednesday as quarterly earnings exceeded analysts' estimates. While the shares are not quite as attractive compared with when I first ran the screen June 20, they still have upside potential, given TheStreet Ratings $38 price target.
Top 10 Cheap Stocks To Watch For 2014: TII Network Technologies Inc.(TIII)
Tii Network Technologies, Inc., together with its subsidiaries, designs, manufactures, and sells products for use in the networks to service providers in the communications industry in the United States. It provides network interface devices (NID), including overvoltage surge protectors, digital subscriber line (DSL) service splitters, and customer bridge modules; building entrance terminals; and accessories comprising station protectors, customer wiring modules, electro-magnetic interference filters, and line test modules. The company also offers broadband products, such as DSL electronic products that include xDSL plain old telephone service splitters to isolate voice and data signals; Outrigger, an outdoor intelligent residential gateway; HomePlug technology that enables networking of voice, data, and audio devices through the consumers? AC power lines. In addition, it provides connectivity products consisting of connector block and terminal block products; voice over I nternet protocol products; switchable voice NID products; voice intercom systems for use in multi-dwelling units; and wire terminals and other connectivity products. Further, the company offers fiber optic products which comprise wall mount enclosures, rack mount enclosures, OSP fiber enclosures, cable assemblies, miscellaneous fiber accessories, and optic network terminals installation accessories. Additionally, it offers overvoltage surge protection products, including two and three electrode gas tubes; station overvoltage surge protectors; protector modules; and protector packs and cat 5 cat 6 protection products, as well as other surge protection products comprising a 75 ohm coaxial protector for cable networks; a 50-ohm coaxial protector for wireless service providers? cell sites; a gel-sealed Ethernet data protector; and power line/data line protectors for personal computers and home entertainment systems. The company was founded in 1964 and is headquartered in Edgewoo d, New York.
Advisors' Opinion:- [By John Reese]
Tii Network Technologies (NASDAQ: TIII) helps protect expensive telecom equipment with its overvoltage surge protection devices. This is especially useful during lightning strikes and power surges. Its Total Failsafe products offer modular station protectors, while its In-Line products protect broadband coaxial cables.
Naturally, large telecom carriers like Verizon Communications (NYSE: VZ) are big customers and account for 34% of sales. DIRECTV (NASDAQ: DTV), Power & Telephone Supply and Tyco Electronics (NYSE: TEL) are also customers. With Verizon and other cell phone providers upgrading to 4G, Tii’s sales should remain very strong.
The stock is a good buy, but it is thinly traded, so use a limit order within 10 cents of the previous day’s closing price. Buy TIII under $3.
Top 10 Cheap Stocks To Watch For 2014: S&P Smallcap 600(PH)
Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.
Advisors' Opinion:- [By Putnam]
Parker Hannifin (PH) operates in a broadly diversified engineering industry with peers such as General Electric (GE) and 3M Company (MMM). Its products serve aerospace, commercial, mobile and industrial markets.
The 2011 fiscal year was stellar for Parker. An all time record of $12.3 billion in sales was reached, a 23.5% increase. Net income increased a whopping 90%.
The common stock currently trades at a price to earnings ratio of 10.5, below the industry average of 14.8 and historical average of 14. Price to book ratio is 2.02 with price to cash flow being 7.3.
Making comparisons in a broadly diversified industry is difficult, since products and service offerings vary greatly between businesses. Therefore, the peer company’s business lines and products were used as the main selection criteria for peer analysis.
Top 10 Cheap Stocks To Watch For 2014: MetroPCS Communications Inc.(PCS)
MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. Its services include voice services, such as local, domestic long distance, and international call services; and data services, including domestic and international text messaging, multimedia messaging, mobile Internet access, mobile instant messaging, location based services, social networking services, push e-mail, and multimedia streaming and downloads, as well as services provided through the binary runtime environment for wireless (BREW), Blackberry, Windows, and the Android platforms, including ringtones, ring back tones, games, and content applications. The company also offers custom calling features consisting of caller ID, call waiting, three-way calling, and voicemail services. In addition, it sells mobile handsets. The company offers its products and services under the MetroPCS brand name, directl y through the company-operated retail stores and indirectly through independent retail outlets, as well as through Internet. As of December 31, 2010, it served approximately 8.1 million subscribers, as well as operated 159 retail stores primarily in the metropolitan areas of Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota. The company is headquartered in Richardson, Texas.
Advisors' Opinion:- [By Larry Gellar]
Although this company is known in some circles for its poor phone service, PCS stock has seen some serious gains in the past 12 months. In fact, look for this trend to continue when earnings are announced on August 2. Much smaller than AT&T (T) and Verizon (VZ), MetroPCS best compares with Sprint Nextel (S). With an operating margin of 16.79 compared with Sprint Nextel’s 0.15%, it’s clear that MetroPCS is better suited for future growth. Gross margin and PEG are also favorable for MetroPCS, currently 42.69% and 1.36 respectively. For another great Seeking Alpha article on cell phone companies, consider reading this. Perhaps the most important point raised is that Sprint Nextel’s purchases of Virgin Mobile and Boost Mobile pose a serious threat to MetroPCS. These companies will fight MetroPCS for the low-end cell phone market and may come out on top due to incr easing problems with MetroPCS’s call quality. Essentially, MetroPCS’s problem is that although it offers unlimited talk, text, and web, these features don’t actually work very well. The future success of this company is highly dependent on an improvement in quality as existing customers continue to get fed up. Luckily for MetroPCS, Sprint seems to be having a setback with its 4G service.
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