Exxon stunned Wall Street on Monday announcing a deal to buy XTO Energy. This is not just a play on natural gas. This is also a play on unconventional asset exploration.
Today’s FRAT™ Videx™ looks at these two companies based on historical earnings.
Best when viewed in full youtube screen.
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For a clearer view, use FRAT™ VidEx™ (click to open in full screen)
Both companies experienced earnings declines following energy price declines. The question is what does the future hold?
The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
Tags: Exxon Mobile Corp., XOM, XTO, XTO Energy Inc.
Posted in Earnings Growth, Fundamentals, Valuation | Comments Off
There is a lot going on in potential healthcare reform. The final outcome is sure to have an impact on major private health insurers. At this juncture the effects could go either way. However, the rejection of a pure public plan could be a positive for private insurers.
Today’s FRAT™ Videx™ looks at a few major health insurers based on historical fundamentals.
Best when viewed in full youtube screen.
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For a clearer view, use FRAT™ VidEx™ (click to open in full screen)
As you do your own research, please keep in mind that the future healthcare insurance landscape is sure to be materially different than it has. Whether this is a great risk or opportunity is up to you to decipher. Good luck!
Disclosure: Author Manages Portfolios Long UNH
The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
Tags: HUM, Humana Inc., UNH, UnitedHealth Group, Wellpoint Inc., WLP
Posted in Earnings Growth, Fundamentals, Valuation | Comments Off
Due to the recent recession, everyone is looking for a deal. This has actually been good news for certain companies. In the long run, at least a business cycle (3-5 years), the rate of earnings growth is important. A fast growing company will command a higher valuation than a slower growing company.
Today’s FRAT™ Videx™ looks at a fast growing business that is prospering in the weak economy.
Best when viewed in full youtube screen.
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For a clearer view, use FRAT™ VidEx™ (click to open in full screen)
Just because one company trades at a lower PE ratio than another does not necessarily mean it’s cheaper. It all depends on the growth rate.
Disclosure: Author Manages Portfolios Long PCLN
The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
Tags: PCLN, priceline com inc
Posted in Earnings Growth, Fundamentals, Valuation | Comments Off
In the long run the relationship between earnings and market price is very correlated. In the short run, price volatility may do anything which can be unnerving. I believe buy and sell decisions are more intelligent when based on earnings rather than price.
Today’s FRAT™ Videx™ on TJX Companies, Inc. shows how price is driven by profits.
Best when viewed in full youtube screen.
[youtube E8ZwxrzeuVA]
For a clearer view, use FRAT™ VidEx™ (click to open in full screen)
If the price of a good and healthy business falls, I believe that’s a buy signal. It never pays to sell a stock for less than it’s worth.
The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
Tags: JCP, JCPenney Co., TJX, TJX Companies
Posted in Earnings Growth, Fundamentals, Valuation | Comments Off
On Monday I blogged about how the stock market had been overvaluing Medtronic. I believe the principle of valuation is critical to sound investment analysis. Unfortunately, I believe it is also a principle that is most often neglected. Overvaluation can destroy the returns of strong businesses. Undervaluation can enhance them. Sound valuation should mirror operating results.
Barron’s magazine Weekday Trader ran a feature on St. Jude Medical (STJ) another quality heart device maker. They are making a case for undervaluation.
Today’s FRAT™ Videx™ features St. Jude Medical and illustrates the principles of valuation.
Best when viewed in full youtube screen.
[youtube f6qappDxAoY]
For a clearer view, use FRAT™ VidEx™ (click to open in full screen)
Warren Buffett once said that “investing is most intelligent when it is most businesslike.” Valuation levels are based on business principles.
The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
Tags: St. Jude Medical, STJ
Posted in Earnings Growth, Fundamentals, Valuation | Comments Off