Sunday, September 8, 2013

10 Best Cheap Stocks To Buy For 2014

LONDON --�I'm shopping for shares right now, should I pop�Aviva� (LSE: AV  ) (NYSE: AV  ) �into my basket?

Problem play
How do you solve a problem like Aviva? it has been looking like a bargain buy for several years, and I'm not the only Fool dazzled by its low, low price. But now it is beginning to look more than a little shop soiled. Is it really a bargain? And should I buy more now, while it still looks cheap?

Insurer Aviva would try the patience of a saint. I bought it three years ago at around seven times earnings, seduced by its fat yield of nearly 8%. Subsequent share price performance has been dreadful. Aviva is down 6% in the past three years, against a 79% leap for�Prudential� (LSE: PRU  ) (NYSE: PRU  ) and 95% blitz for�Legal and General Group� (LSE: LGEN  ) . That's what you get for over-exposure to the toxic eurozone, and underexposure to booming Asia. Aviva's management cut the yield by 25% in March, further reducing its charms.

10 Best Cheap Stocks To Buy For 2014: DRDGOLD Limited(DROOY)

DRDGOLD Limited engages in the exploration, extraction, processing, and smelting of gold in South Africa. It holds interests in the Blyvoor mine; and the Crown gold surface tailings retreatment facility that reprocesses sand and slimes dumps, as well as involves in the surface retreatment operations. The company was incorporated in 1895 and is based in Roodepoort, South Africa.

Advisors' Opinion:
  • [By seekingalpha.com]

    With mining assets in South Africa, the company runs operations from exploration through to smelting.

    Shares are trading at $4.23 at the time of writing, toward the bottom end of their 52-week trading range of $3.96 to $6.23. At the current market price, the company is capitalized at $162.80 million. Earnings per share for the last fiscal year were $1.21, placing the shares on a price to earnings ratio of 3.49. It paid a dividend of $0.06 last year (a yield of 1.40%) which was covered over 20 times by its earnings.

    It has the lowest price-to-earnings ratio of the gold mining stocks, though its share price is being held back by recent employee unrest in the region. There is room for the company to increase its well-covered dividend, and that should be attractive to income investors. With gold prices increasing, and production costs likely to remain stable, DRDGold could be a stock worth investing in for the gearing that the safe haven value of its gold reserves offers to its potential earnings.

10 Best Cheap Stocks To Buy For 2014: Emerson Electric Company(EMR)

Emerson Electric Co. operates as a diversified manufacturing and technology company. The company engages in appliance solutions, climate technologies, industrial automation, motor technology, network power, process management, professional tools, and storage solutions businesses. Its appliance solutions business provides appliance controls, appliance motors, heating products, and white-rodgers; climate technology business provides heating, ventilation, air conditioning, and refrigeration (HVACR) solutions for residential, industrial, and commercial applications; and industrial automation business offers bearings and power transmission products, electrical power generation products, electric motors, variable speed drives and servos, electrical products, material joining solutions, fluid automation products, and wind turbine systems. The company?s motor technology business provides appliance motors, HVACR motors, DC motors, fractional horsepower motors, integral horsepower a nd larger motors, and drives; network power business provides power, precision cooling, connectivity, and embedded solutions; and process management business provides various wireless related products from self-organizing field networks to wireless asset and people tracking. Its professional tools business offers pipe working and threading equipment, pressing technology, utility locating and visual diagnostics systems, drain maintenance tools, power tools, air tools, general purpose hand tools, wet/dry vacs, job site storage equipment, truck tool boxes and equipment, and van storage equipment; and storage solutions business provides shelving and storage products for residential, commercial, and foodservice needs, as well as offers specialized carts, mobile computer workstations, and cabinet fixtures. The company was founded in 1890 and is headquartered in St. Louis, Missouri.

Advisors' Opinion:
  • [By Larry Gellar]

    Similar to Archer Daniels Midland above, Emerson Electric saw 52-week highs in February but has been down since to a current price of below $50. From a valuation perspective, Emerson is quite attractive – notably P/E and PEG are 15.55 and 0.99 respectively. This is lower than competitors like ABB (ABB) and Hitachi (HIT), and Emerson’s margins are also better than those companies. Specifically, Emerson currently has a gross margin of 39.58% and an operating margin of 17.04%. Aside from the companies listed above, this also beats out General Electric (GE), which has 36.79% and 11.15% for those same numbers respectively. On the other hand, there are also some concerns to be had with EMR. Total cash flow for the past 3 quarters has been a whopping negative $1.8 billion. Shareholders have also been wary of the company’s willingness to take on additional debt. Upcoming earnings for EMR have already been guided downward, and it seems likely that the stock price will fall once the actual results are posted. The wisest thing may be to wait for the stock to bottom out after earnings and then buy it before it creeps back upward. Some investors may find EMR attractive for its dividends; yield is currently at 2.8%.

10 Best Casino Stocks To Buy Right Now: Hewlett-Packard Company(HPQ)

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Its Personal Systems Group segment offers commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, and software and services for the commercial and consumer markets. The company?s Services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. Its Imaging and Printing Group segment provides consumer and commercial printer hardware, supplies, media, and scanning devices, such as inkjet and Web solutions, laser jet and enterprise solutions, managed enterprise solutions, graphics solutions, and printer supplies. The company?s Enterprise Servers, Storage, and Networking segment offers industry standard s ervers, business critical systems, storage platforms, and networking products, including switches, routers, wireless LAN, and TippingPoint network security products. Its HP Software segment provides enterprise IT management software, information management solutions, and security intelligence/risk management solutions. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services; and financial asset management services for enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. Hewlett-Packard Company also provides business intelligence solutions that enable businesses to standardize on consistent data management schemes, connect and share data across the enterprise, and apply analytics, as well as licenses its specific technology to third parties. The company was founded in 1939 and is headquartered in Palo Alto, California.

Advisors' Opinion:
  • [By Jon C. Ogg]

    Hewlett-Packard Co. (NYSE: HPQ) was the worst story of all 30 DJIA stocks in 2013. Unfortunately, what was bad is expected to get worse in 2013. With a downside price target of $13.53, HP shares are now expected to fall just over 5%, even with this yielding 3.5% now. HP’s woes do not stop with the Autonomy acquisition woes. Meg Whitman has fired many employees but warned that a real turnaround might not take hold until all the way into 2016. We expect more asset sales and ultimately more layoffs. HP’s position was not helped out after it became known that famous short sellers are continuing to bet against this PC and IT-services giant.

  • [By Victor Mora]

    Hewlett-Packard provides technology products and services to growing businesses in new and old industries worldwide. The stock has suffered in recent years but is now seeing a strong bounce off of lows. Earnings and revenue figures have been shrinking which has sent mixed vibes among investors. Relative to its peers and sector, Hewlett-Packard has led in year-to-date performance. WAIT AND SEE what Hewlett-Packard does this coming quarter.

10 Best Cheap Stocks To Buy For 2014: Horace Mann Educators Corporation(HMN)

Horace Mann Educators Corporation, through its subsidiaries, operates as a multiline insurance company in the United States. The company underwrites and markets personal lines of property and casualty insurance, retirement annuity, and life insurance products. Its products include private passenger automobile and homeowner?s insurance coverage; tax-qualified individual and group annuities in fixed account and combination contracts; and individual and joint whole and term life insurance products. The company offers its products primarily to K-12 teachers, school administrators, education support personnel, and other employees of public schools and their families. It markets its products through its sales force, as well as through independent agents. Horace Mann Educators Corporation was founded in 1945 and is based in Springfield, Illinois.

Advisors' Opinion:
  • [By Chris Stuart]

    Horace Mann Educators(HMN), which provides car and homeowners insurance for teachers and other educators, recently lowered its full-year profit forecast because of a spike in tornado- and storm-related disasters during April and May. Management reduced 2011 EPS guidance to $1.10-$1.30 from a previous $1.75-$1.95.

    With the shares down 10% over the past three months, investors might want to consider the recent dislocation as a buying opportunity. At the midrange of restated guidance, the shares are trading for 12.8 times fiscal 2011 estimates and, more importantly, at just 0.7 times book value. TheStreet Ratings has a $20 price target on Horace Mann.

10 Best Cheap Stocks To Buy For 2014: 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 Chris Stuart]

    Partner Communications(PTNR) is Israel's second-largest wireless operator, but is facing fierce competition in the industry. Recent regulatory changes in the cellular market are also a major headwind for the company. The government has implemented a massive 76% cut in interconnection fees (the charges by mobile-phone operators when connecting users between networks) and lower exit penalties. The company has warned that free cash flow will likely be significantly hurt over coming quarters.

    So what's there to like here? Israeli analysts at Bank Leumi believe the selloff has been overdone, saying "the market has overshot to the downside by pricing in an unreasonably pessimistic outcome to the changes in the industry."

    The stock currently pays a 7.3% dividend, but that could change, given the downward pressure on cash flow. Consider this a high-risk, high-reward investment. TheStreet Ratings has a $19 price target on Partner Communications.

  • [By Roberto Pedone]

    Another under-$10 wireless telecom player that's starting to move within range of triggering a major breakout trade is Partner Communications (PTNR), a telecommunications company, provides cellular and fixed-line telecommunication services in Israel. This stock is off to a strong start in 2013, with shares up sharply by 29%.

    If you take a look at the chart for Partner Communications, you'll notice that this stock has been trending sideways for the last month, with shares moving between $7.28 on the downside and $7.96 on the upside. Shares of PTRN are bucking the overall market weakness today as the stock starts to move within range of triggering a breakout trade above the upper-end of its sideways trading chart pattern.

    Market players should now look for long-biased trades in PTNR if it manages to break out above some near-term overhead resistance levels at $7.80 to $7.85 a share and then once it clears its 52-week high at $7.96 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 107,303 shares. If that breakout triggers soon, then PTNR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $10 to $12.20 a share.

    Traders can look to buy PTNR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $7.38 to $7.28, or below its 50-day at $6.97 a share. One can also buy PTNR off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

10 Best Cheap Stocks To Buy For 2014: Rent-A-Center Inc.(RCII)

Rent-A-Center, Inc., together with its subsidiaries, primarily engages in leasing household durable goods to customers on a rent-to-own basis. The company?s stores offer durable products, such as consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. It also provides merchandise on an installment sales basis in its stores. As of December 31, 2010, the company operated 3,008 company-owned stores in the United States, and in Canada, Puerto Rico, and Mexico, including 42 retail installment sales stores under the names ?Get It Now? and ?Home Choice?; and 18 rent-to-own stores located in Canada under the ?Rent-A-Centre? name. It also operates 209 franchised rent-to-own stores in 32 states under the ColorTyme trade name; and 384 kiosk locations under the ?RAC Acceptance? model. In addition, the company, th rough its ColorTyme?s franchised stores, offers custom rims and tires for sale or rental under the trade names ?RimTyme? or ?ColorTyme Custom Wheels?. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.

Advisors' Opinion:
  • [By Chris Stuart]

    Rent-A-Center(RCII), the largest rent-to-own operator in the U.S., rents furniture and electronics to low- to middle-income customers.

    The company has struggled in the past three months, underperforming its closest competitor, Aaron's Rents(AAN), by over 25%. While Aaron's has executed flawlessly, Rent-A-Center has not, as the company missed earnings estimates. Management blamed the first-quarter fallout on poor weather conditions in February and limited availability of refund-anticipation loans for consumers. Despite the hiccup, management has stuck to its 2011 guidance of $2.90 to $3.10 in EPS, equating to revenue growth of 5% to 7% and earnings-per-share growth of 3% to 10%.

    Key initiatives to boost growth, such as RAC Acceptance (kiosks in third-party stores that arrange rent-to-own programs) are in place. Management has done a good job of managing its debt position and recently boosted the dividend by 167% (now at a 2.2% yield). If management can achieve $3 in EPS for the full year, the stock looks cheap, trading at just 9.7 times earnings (a discount to 15 times P/E for Aaron's). TheStreet Ratings has a $41 price target on shares of Rent-A-Center.

10 Best Cheap Stocks To Buy For 2014: Ur Energy Inc(URG)

Ur-Energy Inc., an exploration stage junior mining company, engages in the identification, acquisition, evaluation, exploration, and development of uranium mineral properties. The company has 13 projects located in Wyoming and Nebraska, the United States; and 3 exploration projects located in the Northwest Territories and Nunavut, Canada. Its landholdings cover approximately 90,000 acres in the United States and approximately 140,000 acres in Canada. The company was founded in 2004 and is headquartered in Littleton, Colorado.

Advisors' Opinion:
  • [By Louis]

    Junior mining company UR-Energy Inc.(URG) has watched its stock increase 73% in the past 12 months. Currently trading at $1.64, URG has more than doubled its 52-week low of 73 cents, and is a great choice for penny stock investors.

10 Best Cheap Stocks To Buy For 2014: Majesco Entertainment Company(COOL)

Majesco Entertainment Company develops and markets video game products primarily for family oriented mass-market consumers. The company publishes video games for various interactive entertainment hardware platforms, including Nintendo?s DS, DSi, and Wii; Sony?s PlayStation 3 and PlayStation Portable; Microsoft?s Xbox 360; and personal computers. It also publishes games for various digital platforms consisting of mobile platforms comprising iPhone, iPad, and iPod Touch, as well as online platforms, including Facebook. The company sells its products primarily to retail chains, specialty retail stores, video game rental outlets, and distributors. The company was founded in 1998 and is based in Edison, New Jersey.

Advisors' Opinion:
  • [By Louis]

    Majesco Entertainment (NASDAQ: COOL) is an innovative provider of video games for the mass market, developing a wide range of titles for Sony’s PlayStation, Microsoft’s Xbox and Nintendo’s WII systems. On June 7, COOL announced that it had signed a contract with the NBA to begin development of an original video-game basketball franchise. The stock rose an impressive 32% over the next five trading days while the broader market sold off.

    However, the stock is down today after reporting weaker-than-expected second-quarter earnings last night, missing consensus earnings estimates by 2 cents. Majesco reported net revenues of $32.1 million for the second quarter ended April 30, 2011, compared with $10.9 million reported for the same period in the previous year. The company’s operating income for the second quarter was $5.3 million, compared with an operating loss of $1.6 million reported for the same period in the previous year. So treat this sell-off as a buying opportunity.

10 Best Cheap Stocks To Buy For 2014: Freeport-McMoran Copper & Gold Inc.(FCX)

Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:
  • [By Roberto Pedone]

    One integrated mining player that insiders are buying up a huge amount of stock in here is Freeport-McMoRan Copper & Gold (FCX), which deals in the mining of copper, gold and molybdenum. Insiders are buying this stock into weakness, since shares are off by 17.5% so far in 2013.

    Freeport-McMoRan Copper & Gold has a market cap of $27.5 billion and an enterprise value of $50.2 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.95 and a forward price-to-earnings of 8.92. Its estimated growth rate for this year is -23.9%, and for next year it's pegged at 27.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.29 billion and its total debt is $21.22 billion. This stock currently sports a dividend yield of 4.3%.

    A director just bought 517,350 shares, or about $14.82 million worth of stock, at $28.64 per share.

    From a technical perspective, FCX is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last five month, with shares dropping from its high of $33 to its recent low of $26.07 a share. Shares of FCX recently formed a double bottom chart pattern at $26.04 to $26.07 a share. Following that bottom, this stock has trended higher to $30.14 a share, but it just failed to hold above its 50-day at $28.60 a share.

    If you're bullish on FCX, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $27 to $26 and then once it takes out its 50-day at $28.60 a share with high volume. Look for a sustained move or close above its 50-day with volume that hits near or above its three-month average action of 17.31 million shares. If we get that move soon, then FCX will set up to re-test or possibly take out its next major overhead resistance levels at $30.14 to $32 a share.

10 Best Cheap Stocks To Buy For 2014: Oracle Corporation(ORCL)

Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.

Advisors' Opinion:
  • [By Fabian]

    Oracle. This software service giant, which deals in a slew of databases, applications, product support, and other services, has also made some smart acquisitions, Resendes says. "The companies they've acquired--PeopleSoft, BEA, and Seibold--really round out the product line." What's more, Oracle's database business has been steadily gaining market share, he says, which is "a positive sign because they're starting to eat up competitors." Oracle's stock, recently $18, is trading slightly below what it was a year ago. Resendes thinks that share price could rise 25 percent.

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