While its biggest competitor is embroiled in an M&A battle with giant Japanese banks and telecom juggernauts, DIRECTV (NASDAQ: DTV ) continues to dominate at its core business. In the just-ended quarter, the company added another 583,000 subscribers in Latin America -- that small, extremely populous region of the world that other cable providers glossed over when glancing at their corporate-strategy edition Rand McNally. In the meantime, North American revenues are rising healthily as well, proving that the company not only gets customers in the door but upsells them as well. The market has rewarded it with new 52-week highs and a healthy valuation, but is there still room left to run? Let's take a look.
Earnings recap
DIRECTV revenues grew 8% in the first quarter to $7.6 billion, driven by the aforementioned Latin American growth and North American average revenue per user, or ARPU, improvements. Operating profit surged 11%, mainly due to the fact that the increased ARPUs in North America boost margins, softening the effects of the slimmer margins in Latin America. On the bottom line, DIRECTV brought in $1.43 per share -- a 34% increase over the year-ago quarter and far beyond analyst expectations. The EPS gain was a result of higher net income and the ongoing stock buyback.
5 Best Valued Stocks To Own Right Now: West Pharmaceutical Services Inc.(WST)
West Pharmaceutical Services, Inc. manufactures and sells components and systems for injectable drug delivery and plastic packaging, and delivery system components for the pharmaceutical, healthcare, and consumer products industries. The company?s Packaging Systems segment provides packaging components and systems used in injectable drug delivery. This segment offers elastomeric stoppers and discs, elastomeric plungers, needle shields, tip caps, aluminum seals and removable plastic buttons, elastomeric components, flashback bulbs and sleeve stoppers, elastomer and co-molded elastomer/plastic components, non-filled syringe components, and dropper bulbs, as well as pharmaceutical containers, closures, and dispensers. This segment also provides laboratory and other services comprising extractables and leachables testing, package/container testing, method development/validation, stability testing, process development, and problem resolution. Its Delivery Systems segment offer s healthcare devices, such as ready-to-use prefilled syringe systems and sterile vials. This segment also offers sterile devices and electronic patch injector systems; passive safety needle systems, disposable auto-injector systems, and safety systems for prefilled syringes; and contract manufacturing services for personal care and consumer products, including infant nurser assemblies, closures for beverage containers, and child-resistant and tamper-evident closures and dispensers. In addition, this segment engages in contract manufacturing and assembling injection molded components and devices for surgical, ophthalmic, diagnostic, and drug delivery systems. The company distributes its products through its sales force and distribution network, as well as through contract sales agents and regional distributors in the United States, Germany, France, and other European countries. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Lionville, Pennsylva nia.
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 West Pharmaceutical Services (NYSE: WST ) , whose recent revenue and earnings are plotted below.
Top 5 Japanese Stocks To Buy Right Now: Nuveen Tax-Advantaged Total Return Strategy Fund (JTA)
Nuveen Tax-Advantaged Total Return Strategy Fund operates as a diversified and closed-end management investment company. The fund primarily invests in dividend-paying common stocks. It also invests in senior loans, U.S corporate bonds, notes and debentures, convertible debt securities, as well as high yield debt securities. Its portfolio primarily includes investments in oil and gas, diversified telecommunication, services, diversified financial services, tobacco, insurance, aerospace and defense, metals and mining, commercial banks, electric utilities, thrifts and mortagage finance, and paper and forest product sectors. Nuveen Tax-Advantaged Total Return Strategy Fund was organized in 2003 and is based in Chicago, Illinois.
Advisors' Opinion:- [By Dividends4Life]
According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer
Top 5 Japanese Stocks To Buy Right Now: Oriental Financial Group Inc.(OFG)
Oriental Financial Group Inc., a financial holding company, provides various banking and financial services to mid and high net worth individuals, and families, including professionals and owners of small and mid-sized businesses primarily in Puerto Rico. It operates in three segments: Banking, Wealth Management, and Treasury. The Banking segment offers commercial and consumer lending, saving and time deposit products, financial planning, and corporate and individual trust services. It also provides mortgage lending products that include the origination and purchase of residential mortgage loans. As of October 25, 2011, this segment operated 30 branches in Puerto Rico. The Wealth Management segment offers securities brokerage, trust services, retirement planning, insurance, pension administration, and other wealth management services. Its securities brokerage services include various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, sto cks, and bonds to retail and institutional clients. This segment also provides public offerings and private placements of debt and equity securities, underwriting, and merger and acquisition and financial restructuring advisory services. In addition, it engages in insurance agency services and administration of retirement plans in the United States, Puerto Rico, and the Caribbean. The Treasury segment is involved in various treasury related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, Puerto Rico government and agency obligations, structured credit investments, and money market instruments. The company was founded in 1964 and is based in San Juan, Puerto Rico.
Advisors' Opinion:- [By Marc Bastow]
Diversified financial services company OFG Bancorp (OFG) raised its quarterly dividend 33% to 8 cents per share, payable on Jan. to shareholders of record as of Dec. 31.
OFG Dividend Yield: 1.8% - [By Paul Ausick]
The third recommended multinational is another Puerto Rican bank, OFG Bancorp (NYSE: OFG). A recent dividend increase could indicate a share buyback for next year. The bank raised its EPS guidance in every quarter of 2013. This small cap bank closed at $16.82 on Friday in a 52-week range of $12.86 to $19.33. The Sterne Agee price target on the stock is $23.00, yielding a potential upside of almost 79%. The EPS estimate for 2014 is $2.05 and the stock�� forward multiple for 2014 is a low 8.3 from the firm while the consensus multiple is 9.45.
- [By John Udovich]
For investors looking for exposure to the US commonwealth of Puerto Rico, banking stocks Doral Financial Corp (NYSE: DRL), First Bancorp (NYSE: FBP), OFG Bancorp (NYSE: OFG) and Popular Inc (NASDAQ: BPOP) offer the best bet as these Puerto Rico stocks trade on major US exchanges rather than the OTC. However, it should be mentioned that there has been a slowdown in Puerto Rico�� economy which has also shrunk in five of the past seven fiscal years. Then last�February, Puerto Rico�� debt was cut to speculative grade by the three largest credit-rating companies while�Governor Alejandro Garcia Padilla has proposed a series of budget cuts to help tackle the island�� mounting debt load -including the freezing public workers��salaries and the closing about 100 schools.
Top 5 Japanese Stocks To Buy Right Now: IDGlobal Corp (IDGC)
ID Global Corporation (IDGC), incorporated on March 1, 2006, is a diversified holdings company with a focus on emerging and middle market investment opportunities in North America. The Company seeks to invest in emerging and private companies. The Company acts as a catalyst between the companies to raise and infuse capital when required.
The Company offers finance, social media and eco friendly products so that companies can independently manage and operate their business. IDGC through its debt and equity investments, controls interests in private companies, as well as special situation start-ups.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks IDGlobal Corp (OTCMKTS: IDGC), Embarr Downs Inc (OTCMKTS: EMBR) and SourcingLink.net, Inc (OTCMKTS: SNET) have been getting some extra attention in various investment newsletters or investor alerts lately as at least two of these stocks have been the subject of paid promotions or other types of investor relations activities. Of course, there is nothing wrong with properly disclosed promotions or investor relations activities. But just how hot are these two small cap stocks? Here is a closer look and a quick reality check:
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