For many investors, May is value investing month. It's when the cheapskates come together to celebrate all things Warren Buffett and Charlie Munger at the Berkshire Hathaway annual meeting in Omaha.
And yet history shows that sometimes the best value stocks are expensive at purchase. That's certainly been true of Apple (NASDAQ: AAPL ) in years past and Amazon.com (NASDAQ: AMZN ) for, well, ever. Both stocks have shown investors generous returns despite having traded for more than 100 times earnings at various points in their history, says Tim Beyers of�Motley Fool Rule Breakers and�Motley Fool Supernova in the following video.
Don't obsess over strict value investing principles. Instead, follow Buffett's own advice to avoid spending time valuing declining businesses. Look for rich opportunities led by healthy, growing enterprises such as Apple and Netflix (NASDAQ: NFLX ) , which Tim says are his top two holdings.
Do you adhere to strict value investing principles? Please watch the video to get Tim's full take, and then talk about your top two holdings in the comments box below.
Top 5 Cheapest Companies To Own For 2015: The Travelers Companies Inc.(TRV)
The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.
Advisors' Opinion:- [By Dan Carroll]
Things heat up on Tuesday for Dow investors, with four companies on the index reporting quarterly data. Analysts expect $0.01 year-over-year earnings gains from Travelers (NYSE: TRV ) and DuPont (NYSE: DD ) , projecting average EPS figures of $2.02 and $1.52, respectively, while estimating United Technologies' (NYSE: UTX ) earnings to dip $0.01 from last year's quarter to $1.30. AT&T (NYSE: T ) is also expected to succeed in its earnings on Tuesday, with experts projecting earnings of $0.64 per share, a year-over-year gain of more than 6%. AT&T's stock has shot up by nearly 14% in the past three months alone, and an earnings beat could send shares even higher.
- [By Tim Travis]
AIG ended the 1st quarter with 1.4767 billion diluted shares outstanding, so at a recent price of $44.52, the company has a market capitalization of $65.74 billion. When you look at in excess of $15 billion in parent holding cash that will be bolstered with the sale of ILFC, the undervaluation becomes even more apparent. AIG will not be paying taxes in the United States for quite some time due to its huge net operating loss carry-forwards, so pretax earnings will largely equate to cash. There is no reason AIG can't execute like Travelers (TRV) or Berkshire's insurance operations, but only time will tell. The truth is that at current prices, the company only needs to be average to produce solid returns for stockholders because the price is so low relative to intrinsic value. This strong margin of safety, fantastic upside potential and management that I trust and admire is what has made AIG my biggest investment, and I'm excited to see where that leads in the future.
Hot Cheap Companies To Watch In Right Now: Express-1 Expedited Solutions Inc.(XPO)
XPO Logistics, Inc. provides third-party logistics services using a network of relationships with ground, sea, and air carriers in the United States, Mexico, and Canada. It operates in three segments: Express-1, Concert Group Logistics, and Bounce Logistics. The Express-1 segment offers ground expedited surface transportation services for freight. It operates a fleet ranging from cargo vans to semi tractor trailer units. The Concert Group Logistics segment provides domestic and international freight forwarding services through a network of independently owned stations. Its domestic freight forwarding services include air charter, expedites, and time sensitive services, as well as cost sensitive services comprising deferred delivery, less than truckload, and full truck load services; and international freight forwarding services consist of on-board courier and air charters, time sensitive services, less-than-container and full-container-loads, and vessel charters. This segm ent also offers documentation on international shipments, customs clearance and banking, trade show shipment management, time definite and customized product distributions, reverse logistics and on site asset recovery projects, installation coordination, freight optimization, and diversity compliance support services. The Bounce Logistics segment provides premium freight brokerage services for truckload shipments. The company serves approximately 4,000 retail, commercial, manufacturing, and industrial customers through 6 U.S. operations centers and 22 agent locations. It offers its services to the automotive manufacturing, automotive components and supplies, commercial printing, durable goods manufacturing, pharmaceuticals, food and consumer products, and high tech sectors. The company was formerly known as Express-1 Expedited Solutions, Inc. and changed its name to XPO Logistics, Inc. in September 2011. XPO Logistics, Inc. was founded in 1989 and is based in Buchanan, Michi gan.
Advisors' Opinion:- [By Travis Hoium]
What: Shares of XPO Logistics (NYSE: XPO ) jumped 13% today after announcing an acquisition.
So what: The company will pay $365 million for logistics provider 3PD, consisting of $357 million in cash an $8 million in XPO restricted stock. Is will use its own cash and borrow $195 million from Credit Suisse Group for the remainder of the purchase. �
- [By Jake L'Ecuyer]
XPO Logistics (NYSE: XPO) shot up 7.06 percent to $30.01 after the company announced its plans to acquire Pacer International (NASDAQ: PACR) in a deal valued at $335 million.
- [By Vera Yuan]
We initiated a new position in Aircastle Ltd. (AYR), an aircraft leasing company with a flexible business model and a rational capital allocation philosophy. We took advantage of an opportunity to purchase shares in the heavily capitalized Georgia bank State Bank Financial Corp. (STBZ) as the depressed stock price reflected investors��lack of patience with a slower than expected pace of capital deployment. We like State Bank�� management team led by Georgia banker Joe Evans. This management team has experience successfully building and selling other Georgia banks. We also received shares of transportation infrastructure company XPO Logistics, Inc. (XPO) as a result of its acquisition of holding Pacer International, Inc.
Hot Cheap Companies To Watch In Right Now: Wendy's/Arby's Group Inc.(WEN)
The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.
Advisors' Opinion:- [By Brian Pacampara]
What: Shares of Wendy's� (NASDAQ: WEN ) climbed 10% today after the fast-food restaurant operator posted strong quarterly results and announced a plan to sell about 425 restaurants by mid-2014.�
- [By Patrick M. Sheridan]
Wendy's (WEN) said customers gobbled down 50 million of the sandwiches, which were made of a soft pretzel bun. It helped boost sales at Wendy's by 3% in both the third and fourth quarters.
- [By Roberto Pedone]
Another under-$10 stock that's starting to move within range of triggering a major breakout trade is Wendy's (WEN), which operates quick-service restaurants specializing in hamburger sandwiches throughout the U.S. This stock has been on fire so far in 2013, with shares up sharply by 57%.
If you take a look at the chart for Wendy's, you'll notice that this stock has been trending sideways and consolidating for the last two months, with shares moving between $8.11 on the downside and $8.88 on the upside. This consolidation has been occurring just above WEN's 50-day moving average of $8.23 a share. Shares of WEN are now starting to spike higher and move within range of triggering a major breakout trade above the upper-end of its recent range.
Market players should now look for long-biased trades in WEN if it manages to break out above its 52-week high at $8.88 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 6.61 million shares. If that breakout hits soon, then WEN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets of that breakout are $12 to $15 a share.
Traders can look to buy WEN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $8.23 a share, or below more support at $8.11 a share. One can also buy WEN off strength once it clears its 52-week high at $8.88 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Hot Cheap Companies To Watch In Right Now: Whole Foods Market Inc.(WFM)
Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.
Advisors' Opinion:- [By William Bias]
People love organic food which contains no unnatural ingredients such as pesticides or fertilizers. �They increasingly crave food that will allow them to live healthier, longer, and cheaper due to the rising cost of health care. Organic grocery store chains Whole Foods Market (NASDAQ: WFM ) and Sprouts Farmers Market (NASDAQ: SFM ) certainly reap the benefit of this increasing consumer preference.
- [By Rich Duprey]
Not that it's hurt the market leader in organic produce, Whole Foods Market (NASDAQ: WFM ) , whose revenues were up almost 16% over the previous 12 months, running well ahead of the 10% annual sales expansion its enjoyed over the trailing five-year period. Similarly, The Fresh Market's� (NASDAQ: TFM ) trailing revenues were up 17%, with even organic dairy producer WhiteWave Foods seeing 12% growth.
- [By Steve Heller]
According to a recent Deloitte survey focused on U.S. consumers and their pantries, name brand loyalty has declined for the third consecutive year. An astounding nine out of 10 consumers are still trading down to private-label brands, despite improvements in the economy. This survey suggests that consumers have not only grown more mindful of their spending habits, but also learned along the way that in-store alternative brands are often comparable. Motley Fool contributor Steve Heller believes that the trend of continued frugality is likely to persist, putting Whole Foods (NASDAQ: WFM ) and Costco (NASDAQ: COST ) in great position to benefit to boost their margins. Check out the video below to hear his thoughts on the issue.
- [By Brendan Byrnes]
In this video segment, Michael explains why Whole Foods Market (NASDAQ: WFM ) is only an "average Joe" among the exceptional companies identified by the study, despite its recent success and the strength of its corporate culture.
Hot Cheap Companies To Watch In Right Now: Partner Communications Company Ltd.(PTNR)
Partner Communications Company Ltd. provides various telecommunications services in Israel. It offers cellular telephony services on GSM/GPRS and UMTS/HSDPA networks. The company also provides basic services, including domestic mobile calls, international dialing, roaming, voice mail, short message services, intelligent network services, content based on its cellular portal, data and fax transmission, and other services. In addition, it offers Internet services provider services that provides access to the Internet, as well as home WiFi networks; value added services, such as anti-virus and anti-spam filtering; and transmission services; and Web video on demand services, music tracks, and games. Further, the company provides voice over broadband and primary rate interface fixed-line telephone services; and data capacity services. Additionally, it offers content services comprising voice mail, text, and multimedia messaging, as well as downloadable wireless data application s, including ring tones, music, games, and other informational content; and sells handsets, phones, routers, and related equipment. The company markets its products through its sales centers, business sales representatives, traditional networks of specialized dealers, and non-traditional networks of retail chains and stores under the Orange brand name. Partner Communications Company Ltd. was founded in 1997 and is headquartered in Rosh Ha-ayin, Israel.
Advisors' Opinion:- [By Eddie Staley]
Telecommunications services shares jumped around 1.19 percent in today’s trading. Top gainers in the sector included NQ Mobile (NYSE: NQ), China Unicom (Hong Kong) (NYSE: CHU), and Partner Communications Company (NASDAQ: PTNR).
- [By Garrett Cook]
In trading on Monday, telecommunications services shares were relative laggards, down on the day by about 0.35 percent. Meanwhile, top decliners in the sector included Cellcom Israel Ltd. (NYSE: CEL), down 5 percent, and Partner Communications Company Ltd. (NASDAQ: PTNR), off 3.9 percent.
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