In a market where virtually everything has risen, where should investors look for the next move? By splitting S&P 500 industries into defensive and cyclical camps we found that cyclicals offer richer fields to plow for new investment ideas.
Below, we review four cyclical stocks that could be positioned for strong gains in the second half of 2013: BE Aerospace (BEAV), Blackrock (BLK), DirecTV (DTV), and Qualcomm (QCOM). Each are long-term buys on our recommended Focus List.
Cyclical industries collectively enjoy better growth prospects for both this year and next year. They look cheap relative to 10-year norms for trailing earnings, current-year estimates, and next-year estimates. Conversely, defensive stocks as a group trade at a premium to historical norms.
Top 10 Building Product Stocks To Invest In Right Now: Altair Nanotechnologies Inc.(ALTI)
Altair Nanotechnologies Inc. develops, manufactures, and sells nano-structured lithium titanate spinel, battery cells, battery packs, and multi-megawatt battery systems, as well as provides related design, installation, and test services in the United States and internationally. The company also provides contract research services to develop intellectual property and/or new products and technology. It markets its energy storage solutions to power companies and electric grid operators; and batteries to electric and hybrid-electric bus manufacturers, and other industrial markets. The company was formerly known as Altair International Inc. and changed its name to Altair Nanotechnologies Inc. in July 2002. Altair Nanotechnologies Inc. was founded in 1973 and is headquartered in Reno, Nevada. Altair Nanotechnologies, Inc. operates as a subsidiary of Canon Investment Holdings Limited.
Advisors' Opinion:- [By Bryan Murphy]
Anybody who was lucky enough to be in an Altair Nanotechnologies Inc. (NASDAQ:ALTI) position anytime before October 11th, then congratulations - you're now up anywhere between 38% and 157%, depending on when you stepped in. Now get out. Instead, use that capital to step into an Amarin Corporation plc (NASDAQ:AMRN) position, which took a 20% hit on Friday. The rally from ALTI looks like it's ready to unravel, while the implosion from AMRN looks ripe for a reversal too.
5 Best Defensive Stocks To Watch For 2014: Ensign Group Inc (ENSG)
The Ensign Group, Inc., incorporated in 1999, is a holding company. The Company is a provider of skilled nursing and rehabilitative care services through the operation of 103 facilities, five home health and three hospice operations located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Oregon, Texas, Utah and Washington. Its facilities provide a spectrum of skilled nursing, assisted living, home health and hospice services, including physical, occupational and speech therapies, and other rehabilitative and healthcare services, for both long-term residents and short-stay rehabilitation patients. Its walk-in clinics will offer daily access to healthcare for minor injuries and illnesses, including x-ray and lab services, all from convenient neighborhood locations with no appointments. In March 2014, the Company acquired Horizon Post-Acute and Rehabilitation Center, a 196-bed skilled nursing facility in Glendale, Arizona.
On January 1, 2011, the Company purchased one skilled nursing facility which also offers assisted living and independent living services and one independent living facility. On February 1, 2011, the Company purchased one skilled nursing facility in Utah, which also offers assisted living and independent living services. On March 18, 2011, the Company purchased one assisted living facility in California. On May 15, 2011, the Company purchased a home health and hospice operation in Utah. On June 1, 2011, the Company purchased an assisted living facility in Nevada. On July 18, 2011, the Company acquired nine skilled nursing facilities. On August 1, 2011, the Company acquired a skilled nursing facility in Texas; the Company acquired a skilled nursing facility in Utah, and the Company acquired an independent living facility. On October 1, 2011, the Company acquired a skilled nursing facility in California. On December 1, 2011, the Company acquired a skilled nursing facility in Nevada. On December 30, 2011, the Company acquired an assisted living facility in Ari! zona. In November 2011, the Company acquired Pocatello Care and Rehabilitation Center. On November 22, 2011, the Company acquired Homecare Solutions.
The Company's facilities provide a range of skilled nursing and assisted living services, physical, occupational and speech therapies, and other rehabilitative and healthcare services, for both long-term residents and short-stay rehabilitation patients. As of December 31, 2011, it operated 102 facilities, of which it owned 77 and operated an additional 25 facilities under long-term lease arrangements, and had options to purchase five of those 25 facilities.
The Company's wholly owned subsidiaries, which include the Service Center, provides centralized accounting, payroll, human resources, information technology, legal, risk management and other centralized services to the other operating subsidiaries through contractual relationships with such subsidiaries. The Company also has a wholly owned captive insurance subsidiary (the Captive) that provides some claims-made coverage to the Company's operating subsidiaries for general and professional liability, as well as coverage for some workers' compensation insurance liabilities.
Skilled nursing facility revenue is primarily derived from Medicaid, private pay, managed care and Medicare payors. The Company�� skilled nursing facilities provide Medicaid-covered services to individuals consisting of nursing care, room and board and social services. Rehabilitation therapy revenue is primarily received from private pay and Medicare for services provided at skilled nursing facilities and assisted living facilities. Assisted living facility revenue is primarily derived from private pay residents. In addition, Medicaid or other programs in some states where it operates supplement payments for board and care services provided in assisted living facilities. Hospice revenues are primarily derived from Medicare. It derives substantially all of the revenue from its home health busines! s from Me! dicare and Managed Care sources. Its home health care services generally consist of providing some combination of the services of registered nurses, speech, occupational and physical therapists, medical social workers and certified home health aides.
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 Ensign Group (Nasdaq: ENSG ) , whose recent revenue and earnings are plotted below. - [By Marc Bastow]
Skilled nursing and rehabilitative services holding company Ensign Group (ENSG) raised its quarterly dividend 7.7% to 7 cents per share, payable on Jan. 31 to shareholders of record as of Dec. 31.
ENSG Dividend Yield: 0.6% - [By Eric Volkman]
Ensign Group (NASDAQ: ENSG ) has a new asset in its medicine chest. The company announced that, at the end of June, it had closed the acquisition of the Mountain View Rehabilitation and Care Center in Washington state. The center is an 82-bed skilled nursing facility located in the town of Marysville. The terms of the deal were not disclosed, although Ensign Group admitted that the purchase was effected in cash.
5 Best Defensive Stocks To Watch For 2014: The Navigators Group Inc.(NAVG)
The Navigators Group, Inc., together with its subsidiaries, engages in underwriting ocean marine, property and casualty, professional liability, and specialty insurance products and services. The company?s marine and inland marine insurance products include marine and energy liability, cargo, craft/fishing vessel, bluewater hull, brownwater hull, protection and indemnity, war, customs bonds, commercial output policy, construction, transportation, specialty, specie, and marine excess-of-loss reinsurance Its property and casualty insurance products comprise general and environmental liability, umbrella and excess, offshore energy, onshore energy, operational engineering, construction, life sciences, exporters package liability, accident and health reinsurance, Latin America property and casualty reinsurance, agriculture reinsurance, professional liability reinsurance, bloodstock, and the U.S. casualty insurance products. The company?s professional liability products inclu de directors and officers, employment practices, fiduciary, crime, accountants professional, lawyers professional, insurance agent errors and omissions, miscellaneous professional, technology and media, design professionals, and real estate agent liability insurance products. The Navigators Group, Inc. distributes its products through global, national, and regional retail and wholesale insurance brokers. The company was founded in 1981 and is based in Rye Brook, New York.
Advisors' Opinion:- [By CRWE]
The Navigators Group, Inc. (NASDAQ:NAVG) reported that its principal underwriting agency subsidiary, Navigators Management Company, Inc., has expanded Adrien T. Robinson’s responsibilities to include the open-brokerage products of Life Sciences, Global Package, Environmental Casualty, Commercial Auto and Excess Casualty Retail. Mr. Robinson was previously President of the Environmental Casualty division.
5 Best Defensive Stocks To Watch For 2014: MicroFinancial Incorporated(MFI)
Microfinancial Incorporated, through its subsidiaries, operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. The company provides financing alternatives, and leases and rents commercial equipment to start-up and established businesses for use in their daily operations. It leases water filtration systems, food service equipment, security equipment, point-of-sale cash registers, salon equipment, health care and fitness equipment, and automotive equipment. The company primarily sources its originations through a network of independent equipment vendors, sales organizations, and other dealer-based origination networks. Microfinancial Incorporated was founded in 1987 and is headquartered in Woburn, Massachusetts.
Advisors' Opinion:- [By Gerrit De Vynck]
Maple Leaf Foods Inc. (MFI), the Canadian producer of foods from hamburgers to frozen pasta, has drawn bids for its bread unit from Grupo Bimbo SAB, Flowers Foods Inc. (FLO) and several private-equity firms, three people with knowledge of the matter said.
- [By Magic Diligence]
One stock that has been in the official Magic Formula (MFI) screen for the past month or so has piqued my interest: Kraft (KRFT).
The MFI screens, particularly the $50 million screen, are usually reserved for deep value stocks. Usually you find stocks in here suffering serious adverse business developments (LQDT, NSR, etc.), operate in out-of-favor industries (APOL, STRA, etc.), have volatile and difficult-to-predict future prospects (PDLI comes to mind), or are just simply cheap quantitatively (CSCO, COH, et.al.).
- [By Eric Lam]
Alacer Gold Corp. and Iamgold Corp. rallied at least 5.9 percent as the metal traded at its highest in 11 weeks. Maple Leaf Foods Inc. (MFI) jumped 7.8 percent as it agreed to sell a unit for C$645 million ($614 million). Penn West Petroleum (PWT) Ltd. added 1.7 percent after cutting 25 percent of its workforce to reduce costs.
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