About a year ago, Orange (ORAN) was brought up on this site as a potential value investment. (Back then, we knew it as France Telecom (FTE).) Sentiment was in the toilet. A weak European economy combined with new regulations and an upstart competitor scared investors away, resulting in price to free cash flow ratios in the single digits. But these are exactly the conditions under which investors should be buying. When temporary issues (and there were a trifecta here!) affect a historically profitable business in an industry with barriers to entry, it can create a buying opportunity if investors are running scared. That appears to have been what happened here. The regulatory issues eased up as did the competitive environment, and shares of Orange have risen 60% to what I would consider a more appropriate valuation. Some of the comments I received when I wrote the article last year include: "FTE will end, but I think it has more than enough strength to limp on for another decade at least, dragging on yield hungry investors that don't know any better." "Lets not look at the horrible French economy" "worsening unemployment" "government that loves to socialize, ruin their private businesses" "It's been in decline year after year after year." Such macro-economic, backward-looking forecasts have no place in value investing! Go against the crowd.Disclosure: No position
Top Oil Service Companies To Own In Right Now: STMicroelectronics N.V.(STM)
STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Its products include discrete and standard commodity components, application-specific integrated circuits, custom devices and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications. The company also offers subsystems and modules for the telecommunications, automotive, and industrial markets comprising mobile phone accessories, battery chargers, ISDN power supplies, and in-vehicle equipment for electronic toll payment, as well as provides Smartcard products. Its products are used in various microelectronic applications consisting of automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation, and control systems. The company sells its products through distributors and ret ailers. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
Advisors' Opinion:- [By MONEYMORNING]
In 2009, Ericsson hooked up with STMicroelectronics NV (NYSE ADR: STM) - Europe's No. 1 chipmaker - to produce semiconductors for the wireless market. Launched in 2009, this also was ill-fated.
- [By Michael Allison]
On Aug. 13, 2013, the company announced that shareholders of Energy Fuels overwhelmingly approved Energy Fuel's acquisition of Strathmore Minerals Corp. (STM). (See Energy Fuel's press release here.)
- [By Vanina Egea]
Reed Elsevier NV (ENL) is a diversified publisher and information provider. It works on a wide range of market segments that include scientific, technical and medical (STM); legal; risks solutions and business information and exhibitions. The key of the company�� growth, however, lies almost exclusively in two brands: Elsevier and LexisNexis.
- [By Esekla]
Like Universal Display, InvenSense (INVN) represents a good long-term opportunity in its own right. The price entry point is not quite as good, though it has pulled back under my more recent price target of $15, when reports of a long-awaited Apple design win were challenged. Though conversations between the two are ongoing, InvenSense management's comments indicate an unwillingness to get roped into wrecking margin for volume, like many other Apple suppliers. Consequently, I don't believe they will gain Apple as a customer until the release of an iWatch or similar device that absolutely requires InvenSense's best-in-class form factors and power usage. It's also possible that continued good news on their legal battles with ST Micro (STM) could move the stock.
5 Best European Stocks To Invest In 2014: Aegon NV(AEG)
AEGON N.V. provides life insurance, pensions, and asset management products and services worldwide. The company?s life insurance products include traditional, term, universal, whole, and other life insurance products sold as part of defined benefit pension plans, endowment policies, post-retirement annuity products, and group risk products; supplemental health insurance products comprise accidental death, other injury, critical illness, hospital indemnity, medicare supplement, and student health; specialty lines consists of travel, membership, and creditor products; and long term care insurance products for policyholders who require care due to a chronic illness or cognitive impairment. It also offers a range of savings and retirement products and services, including mutual funds, and fixed and variable annuities, savings accounts and investment contracts, segregated funds, guaranteed investment accounts, and single premium immediate annuities, as well as investment advice to individuals. In addition, the company offers employer solutions and pensions, such as retirement plans, pension plans, and pension-related products and services; investment products, including onshore and offshore bonds, and trusts; reinsurance products and solutions to life insurance and financial services companies; general insurance products comprising house, car, and fire insurance; and asset management products and services, including general account assets, unit-linked funds, and third party activities. AEGON N.V. markets its products through independent and career agents, financial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, and specialized financial advisors, as well as through online, direct, and worksite marketing. The company was founded in 1900 and is headquartered in The Hague, the Netherl ands.
Advisors' Opinion:- [By Will Ashworth]
Assuming it delivers on its outlook for 2014, its current free cash flow yield is a very enticing 20%. This isn�� a growth stock, but its brands still possess hidden value. As cheap stocks go, it�� very attractive.
Cheap Stocks to Buy: Aegon (AEG)It�� not often that you can buy a $19 billion market cap for under 10 bucks. Aegon�� a Dutch insurance company that�� had a rough ride over the past few years, and its stock�� suffered as a result. In the late ’90s AEG stock traded around $60 — it hasn�� been anywhere close since. However, it�� got some good assets that should bear fruit in the years to come. Aegon has 12,000 employees in the Americas doing business primarily under the Transamerica brand, which has been a part of AEG since 1999.
5 Best European Stocks To Invest In 2014: British American Tobacco Industries p.l.c.(BTI)
British American Tobacco p.l.c., through its subsidiaries, engages in the manufacture, distribution, and sale of tobacco products. The company offers cigars, cigarettes, smokeless snus, roll-your-own, and pipe tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Viceroy, Kool, Rothmans, Peter Stuyvesant, Benson & Hedges, and State Express 555 brand names. It has operations in the Asia-Pacific, the Americas, eastern and western Europe, Africa, and the Middle East. The company was founded in 1902 and is headquartered in London, the United Kingdom. British American Tobacco p.l.c. operates independently of Remgro Ltd. as of November 03, 2008.
Advisors' Opinion:- [By Jayson Derrick]
Reynolds American (NYSE: RAI) announced it will acquire Lorillard (NYSE: LO) for $50.50 in cash and 0.2909 a share of Reynolds, implying a total price tag of $68.88 per share, or $27.4 billion. As part of the deal, British American Tobacco (NYSE: BTI) will maintain its 42 percent stake of Reynolds. Reynolds and British American tobacco also came to terms on sharing technology and development costs on future tobacco products. Reynolds American also said that it will unload Kool, Salem, Winston, Maverick, and blu eCigs brands to Imperial Tobacco for $7.1 billion. Reynolds American said that the deal will be accretive within the first full year with a double-digit accretion rate in the second year and beyond. Shares of Reynolds American lost 6.87 percent, closing at $58.84 while shares of Lorillard lost 10.49 percent, closing at $60.17. Shares of British American Tobacco lost 1.88 percent, closing at $120.61.
- [By Tony Reading]
In this series I'm subjecting companies to scrutiny under five headings: prospects, performance, management, safety, and valuation. How does�British American Tobacco� (LSE: BATS ) (NYSEMKT: BTI ) measure up?
- [By Alan Oscroft]
British American Tobacco (LSE: BATS ) (NYSEMKT: BTI )
Thursday will also bring us a first-quarter update from British American Tobacco, and yet again we're seeing a share price rise that has started to tail off. The price hit a 52-week peak of 3,640 pence on March 12 (the same day the FTSE 100 reached a five-year high of 6,534) but has since slipped back to 3,502 pence.
5 Best European Stocks To Invest In 2014: TotalFinaElf S.A.(TOT)
TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.
Advisors' Opinion:- [By Tom Taulli]
Efficient operator:�CVX stock has benefited from huge scale, with operations that span mining, chemicals and power generation. Yet, among its peers, the company is standout in its efforts to find cost savings. Its earnings per barrel come to about $23.33, which is $5 ahead of companies like BP (BP), Royal Dutch Shell (RDS.A), Total (TOT) and ExxonMobil (XOM).�But CVX the company is also one of the world�� largest producers of Liquefied Natural Gas (LNG), which has benefited from strong growth in places like Asia and Europe. Besides, LNG has massive barriers of entry because of the substantial requirements for infrastructure, logistics and technology.
- [By Dan Caplinger]
Time to diversify?
For international investors, weak stock markets might well offer a great opportunity. As stocks in the U.S. appear increasingly overpriced, beaten-down international stocks are a better value. For instance, European energy stocks BP (NYSE: BP ) and Total (NYSE: TOT ) haven't done as well as their U.S. counterparts, even though they both have similar global exposure to energy assets around the world. When you think about investing, don't ignore the Global Dow, despite the Dow Industrials' stronger performance recently. - [By Marc Bastow]
International oil and gas company Total (TOT) raised its quarterly dividend 3.4% to 61 cents per share, payable June 20 to shareholders of record as of May 30.
TOT Dividend Yield: 4.01%
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