Subscribe to Financials ReviewNews FeedSubscribe to Financials ReviewComments

Browse > Home / Archive: November 2009

Cheap Stocks: 3 Dirt Cheap Stocks

November 30, 2009 by admin  
Filed under Investing

Leave a Comment

With all the dialogue of stocks being overvalued due to the immense rally we’ve seen since March, you’d think there’d be almost no dirt cheap stocks. You know what I’m talking about. I mean really cheap. Stocks with single digit P/Es and price-to-book ratios well under 1.0.

But what if I told you that there’s one sector where there’s not just one dirt cheap stock, but many of them. And as an added bonus, these dirt cheap stocks also have a Zacks Rank of #1 or #2, which means they have rising earnings estimates.

Too good to be true?

Nah. You just have to know where to look.

Dirt Cheap Stocks are Not the Techs

To find the dirt cheap stocks in this market you have to get over your obsession with tech stocks, energy plays and, as hard as it is, even the drybulk shippers.

Because our dirt cheap stocks are found in the insurance sector. Yes, insurance.

Not glamorous enough for you?

These 3 dirt cheap stocks have an average forward P/E of just 6.14 and an average price-to-book ratio of 0.84. Enough said.

3 Dirt Cheap Stocks – And They Pay Dividends Too

PartnerRe Ltd. (PRE – Analyst Report) is a global reinsurer of, among other things, property, casualty, agriculture, aviation/space, catastrophe, marine, life/annuity and energy risks. On Oct 26, it reported third quarter results that beat the Zacks Consensus Estimate by 44.98%. It was the third consecutive beat.

With a low level of large losses in the quarter, aided by the tranquil hurricane season, the company’s reinsurance and capital markets segments performed well.

Analysts like what they heard as 8 out of 12 raised 2009 estimates in the last month. Over the past 90 days, 2009 estimates jumped 22.4% to $12.68 from $10.36 per share. Analysts expect 2009 earnings growth of 50.22%.

PartnerRe’s Cheap Stock Credentials

The company has a forward P/E of just 6.12 and sports a price-to-book ratio of 0.83. The PEG ratio is also only 0.64.

PartnerRe is a Zacks #2 Rank (buy) stock. The current dividend yield is 2.40%. Check out the 2-year chart:

Platinum Underwriter Holdings, Ltd. (PTP – Snapshot Report) is also a reinsurer, providing property, casualty and finite risk reinsurance coverage worldwide. On Oct 21, the company easily beat the Zacks Consensus Estimate for the third quarter by 15.17%. Net income was a record. The results were boosted by lower than expected catastrophe activity and strong investment results.

Analysts are bullish on Platinum Underwriter as 2 out of 5 have raised full year estimates in the last 30 days. The 2009 Zacks Consensus jumped to $5.89 from $5.76 per share in that time. Analysts expect 2009 earnings growth of 62.76%.

Platinum Underwriter Holdings Cheap Stock Credentials

The company has a forward P/E of 6.17 and a price-to-book ratio of 0.83. Its PEG ratio is just 0.58.

The company is a Zacks #2 Rank (buy) stock. As an added bonus, it is yielding a dividend of 0.90%. Take a look at the 2-year chart action:

Delphi Financial Group, Inc. (DFG – Analyst Report) is in a different segment of the insurance industry than the other two dirt cheap stocks. It provides employee benefit services and offers group insurance coverages for long-term and short-term disability, life, excess workers compensation for self insured employers, travel accident, dental and limited benefit health insurance.

On Oct 27, the company reported third quarter results and surprised on estimates for the fourth straight quarter. Earnings per share rose 284% from the year ago period to $1.00 per share from 26 cents.

Improved investment results boosted the quarter as the company saw improved yields in its fixed income portfolio. Investment income rose 357% to $88.7 million from $19.4 million in the third quarter of last year.

Analysts like what they see for the rest of 2009. 6 out of 8 analysts have raised full year estimates in the last month, boosting the Zacks Consensus to $3.74 from $3.51 per share. Analysts expect year over year earnings growth of 93.72%.

Delphi Financial Group’s Cheap Stock Credentials

Delphi Financial has a forward P/E of 6.12 and a price-to-book of 0.86. Its PEG ratio is only 0.51.

The company is a Zacks #1 Rank (strong buy) stock. It rewards shareholders with a dividend of 1.70%.

Ways to Search for Dirt Cheap Stocks

Zacks Custom Screener – This is the place to start to create your own screens to find dirt cheap stocks.

Research Wizard – This refined tool will allow you to search for a detailed list of companies with dirt cheap stock characteristics such as low PEG and P/E ratios as well as other value indicators like low P/S and P/B ratios.

3 Dirt Cheap Stocks

Article Source:http://www.articlesbase.com/investing-articles/cheap-stocks-3-dirt-cheap-stocks-1522396.html

Tags: , , , ,

Corporate Finance Best Online High Return Investment Company

November 30, 2009 by admin  
Filed under Investing

Leave a Comment

Corporate Finance Best Online High Return Investment Company

Choosing the best online high return investment van. Investment is quite a tough ball game and everyone is certainly not profile out for the precise. Visit here http://allfinance-tips-help.blogspot.com

stage some people may be shrewd investors who understand the market to an extent that they learn locus to invest and to what extent, trained are others who are direct novices in this field.Whether you are a initiate or an brainy investor, the first place you will whammy at when looking seeing a good stake opportunity is the Internet. abstraction it would get easier? lap up again! When you search the Internet for a just investment company, what you scrutinize are frequent pages that hire a great bear of investment companies.Choosing the best company from thoroughgoing the available options can be quite an overwhelming obstruction. This virgin of writing aims to give you some useful tips about how to accumulate the best kind fling caravan. scrutinize the Internet for an online proposition company. Out of the umpteen contain of pages that you get as your search result, focus on the first two pages, as the results tend to become a no problem wayward in that you pursuit farther.

Don’t limit your focus only to those names that you recognise from television or radio commercials. There may be discrete other websites that present brilliant investment opportunities. Before signing up with an investment company, you need to assess your own larger of proposition. If you crave a at odds portfolio to boast of, then go in considering a company that offers a wide bravura of investment options.If your choice of investment is only stocks or returned funds, therefore go in seeing an investment company that exclusively deals with these categories. You obligation also look at the minimum initial investment that an online company requires from you and whether you are ready to offer that kind of money or not. expressed companies require you to open a cheque or savings account with the banks that they are associated with.Also don’t forget to scrutiny into brokerage and other fees that the site will charge you. Also, a vital fleck of consideration is whether the online company will invest your dividends by itself or maintain it in the money market until you opt what you want done keep from it. Besides pleasing into due consideration unabbreviated the above points, you must flee stunning your business to an investment company that charges an exorbitant membership fees or does not give you free access to your own investments Visit here http://allfinance-tips-help.blogspot.com

I am a Freelancer Writer since 5 years.Article Source:http://www.articlesbase.com/investing-articles/corporate-finance-best-online-high-return-investment-company-1517650.html

Tags: , , , ,

How To Invest in a Commodity Trading Advisor

November 29, 2009 by admin  
Filed under Investing

Leave a Comment

Maybe it is human nature… maybe it is a lack of patience or discipline…or the new word courage…why do so many lose money when investing with legendary Commodity trading advisors? I have seen it over and over again. A commodity trading advisor has a good run…and then his assets under management swell. Then the inevitable happens the commodity trading advisor goes through a draw down or even a flat period and the investors jump ship. Assets under management plunge. Many investors lose money doing so. If only they had the discipline to stay with the manager…they could have compounded their money over and over again. Some disciplined commodity trading advisors look at these clients that jumped ship as a trade that did not work. They did not take it personally nor cared. The commodity trading advisors are compounding their own money and fully realize that in order to be in this business, loses will happen, draw downs will happen and investors will only invest with the when they have positive results. The real key in investing with commodity trading advisors is to fully understand how the manager thinks…manages risk…and how he trades. One should not be full of unrealistic expectations… Nothing has to happen in commodity trading..in fact ..most of the time it does not. We only get these rare huge moves every couple of years.. But successful, disciplined commodity trading advisors make themselves available. They do not give up during a draw down. They keep on going..If you want to be a successful commodity trading investor you will need to also. Look at this manager.. Yes,Bill Dunn of Dunn Capital Management has some volatile results, he has compounded money since 1974. The results speak for themselves.. on the chart below from 1984 to 2009 approx 25 years on average Bill Dunn generated 14.47%. Putting this in another context… 100k turns into virtually $3,000,000. This is my point. One can compound their way to wealth by diversifying among commodity trading advisors and being patient and disciplined.

For the results of Dunn Capital since 1984…go here

http://myinvestorsplace.com/2009/11/29/how-to-invest-in-a-commodity-trading-advisor/

Andrew Abraham
A.Abraham@AngusJackson.com
www.AJpartnersinc.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money

My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following. Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.

Article Source:http://www.articlesbase.com/investing-articles/how-to-invest-in-a-commodity-trading-advisor-1517986.html

Tags: , , , ,

Your Best IRA CDs May Be Only Part of Your Retirement Porfolio

November 28, 2009 by admin  
Filed under Investing

Leave a Comment

Is the best IRA CD around all you have in your nest egg? Did you know that almost any high quality / low risk fixed income asset works extremely well when matched with an efficient portfolio of risky assets? A number of people have made the terrible mistake of been caught short of funds due to putting too much of their retirement account in low or no risk assets.

Ditching Your Risky Asset Portfolio Too Soon Is Risky
People living on a fixed income stream are relying on their interest income to pay for medicine and other daily need items – food, electricity, etc. The mistake that people can make when making the transition from earning money and putting into 401K or individual retirement account and living off those stored funds is that they move all their funds into fixed income securities.

While this may seem to be a conservative strategy for producing income, it in fact creates a significant risk of out living the assets in the account due to not producing a sufficient return on investment for today’s extended life expectancy. Not planning to earn enough income in the future is equally risky as committing too many assets to high risk securities.

The Best IRA CD for Your Account May Be the One You Combine with a Risky Asset Portfolio
It may sound counterintuitive but the best IRA CD for a retirement account should be significantly less than 100% of your nest egg. Combining a portfolio of risky assets including stocks, mutual funds, and other higher yielding assets with a high return CD can significantly improve returns without substantially increasing risk.

The best IRA CD / stock portfolio ratio for a retirement account should be around 80/20 – where perhaps in the neighborhood of eighty percent of the cash in the account should be allocated to the CDs / low-risk / fixed income assets and the remainder placed in an efficient portfolio of stocks and mutual funds.

Examine the risk return chart of a high IRA CD as part of a combination efficient portfolio account.

Article Source:http://www.articlesbase.com/investing-articles/your-best-ira-cds-may-be-only-part-of-your-retirement-porfolio-1514931.html

Tags: , , , ,

Dubai Drops a Turkey on Global Markets! November 27, 2009

November 28, 2009 by admin  
Filed under Investing

Leave a Comment

Being Street Smart

Sy Harding

Dubai Drops a Turkey on Global Markets!  November 27, 2009.

This was shaping up to be such a calm and enjoyable Thanksgiving week.

A lot of important economic reports were crammed into the first three days of the week. Most of them provided positive surprises, supporting the scenario of a nicely improving economy. It wasn’t good that the economic recovery in the third quarter wasn’t as strong as previously reported, with 3rd quarter GDP being revised down to 2.8% from the previously reported 3.5%.

However, other economic reports included that new unemployment claims fell by 35,000 the previous week (to the lowest level in 13 months); existing home sales shot up 10.1% in October; new home sales rose a better than expected 6.2%; home prices rose again in October; and consumer confidence was up again. The stock market was following its tradition of usually providing a positive Thanksgiving week, closing up each of the first three days of the week.

What a nice backdrop for the beginning of a long and relaxing Thanksgiving holiday weekend in the U.S., with the market closed Thursday and open only half a day Friday, and a three-day Islamic holiday in much of the Middle-East,

However, Dubai World, Dubai’s government owned ‘sovereign investment company’ stuffed the Thanksgiving turkey with a bombshell announcement that gave many investors indigestion before the bird was even carved.

As everyone is well aware by now, Dubai World announced a plan to delay payments on its global debts for six months. Dubai acknowledged that it realized how global markets would react, but will not provide more details until next week, for which it is being accused of irresponsibility and ineptitude.

Stock markets in Europe, open at the time, plunged an average of 3.2%. When Asian markets opened Thursday night they plunged between 3% and 4.8%. Dow futures were down more than 300 points overnight Thursday before improving some by Friday morning. But even so, when the U.S. market re-opened Friday morning the Dow was down 230 points in less than five minutes.

Meanwhile, the U.S. dollar and Treasury bonds soared as safe havens, while gold, oil, and most commodities plunged along with stock markets.

The Dubai announcement is generating enough ghosts, goblins and things that go bump in the night to remind me of Halloween rather than Thanksgiving.

Investors are worried that a default on its debts by a government-owned ‘sovereign investment company’ will create a ripple effect through global financial markets. Most of Dubai World’s debts are related to its massive commercial real estate developments in Dubai, as well as mortgage-debt on its large global real estate investments.  Most readers will remember the considerable publicity and political debate a few years ago when Dubai World bought the seaport operations of major cities on both coasts of the U.S. It has much more quietly acquired other large holdings around the world. Freezing its debt payments cannot help but cast a pall over global banks already experiencing rising defaults on commercial loans and mortgages, perhaps leading to even less willingness to make loans.

However, the initial reactions may have been overdone.

Dubai’s total debt is estimated as between $60 and $80 billion, large in relation to the country’s GDP of $75 billion. But, since any losses would only be some percentage of that, defaults spread globally could be quite easily absorbed, not likely on their own to create a new global credit crunch.

The danger of course is that fear could cause a ripple effect in financial markets similar to the aftermath of the failure of Lehman Brothers last September, a panic by investors to get out of all investments without discrimination.

We will have to wait and see. It was encouraging that after plunging more than 3% in kneejerk reaction on Thursday, European markets closed up on average of more than 1% on Friday. Meanwhile, the U.S. market, which was closed on Thursday, had a less panicked reaction than the rest of the world when it opened on Friday, closing down ‘only’ 1.7% on the day. It also almost salvaged a traditional positive Thanksgiving week, the Dow down only 9 points, or 0.1% for the week, and the S&P 500 exactly unchanged for the week.

However, the Dubai announcement did ruin what had promised to be an unworried weekend for investors, and adds considerable importance to next week. Retailers reports of Black Friday sales, and anticipation of the important employment reports due out next week, may take a backseat to renewed debate over the financial foundation of the fledgling economic recovery.

Sy Harding is president of Asset Management Research Corp, publishers of the financial website www.StreetSmartReport.com, and the free daily market blog, www.syhardingblog.com.

Sy Harding is CEO of Asset Management Research Corp., author of 1999’s Riding the Bear and 2007’s Beat the Market the Easy Way, editor of www.StreetSmartReport.com, and www.SyHardingblog.com.

Article Source:http://www.articlesbase.com/investing-articles/dubai-drops-a-turkey-on-global-markets-november-27-2009-1513774.html

Tags: , , , ,

Next Page »