The S&P 500 (SNPINDEX: ^GSPC ) has soared in the past four years, leading many to fear that the index is long overdue for a major correction. In times of trouble, value investors often look to stocks that trade at low valuations compared with their peers to provide a margin of safety from a potential downturn.
Yet judging stocks on a single valuation metric can lead to misleading conclusions that can prove costly. Today, let's take a look at some of the least expensive stocks in the S&P on a price-to-book value basis, with an eye toward understanding why book value might not be the best way to judge whether these stocks are truly cheap.
The cheapest stocks in the S&P
On a book-value basis, financial stocks have had low book values for a long time. Genworth Financial (NYSE: GNW ) trades at just one-third of book value, while plenty of other insurance companies and banks offer price-to-book ratios of between 0.5 and 0.75. Yet during the financial crisis, investors learned just how inaccurate book values were. Massive writedowns of toxic assets proved necessary to reflect the actual value of those assets, and as a result, price-to-book ratios temporarily soared even as stock prices plunged.
5 Best Oil Stocks To Buy For 2015: First Niagara Financial Group Inc.(FNFG)
First Niagara Financial Group, Inc. operates as the holding company for First Niagara Bank, N.A. that provides retail and commercial banking, and other financial services to individuals, families, and businesses. It offers retail deposit accounts, which include savings, negotiable order of withdrawal, checking, money market, and certificate of deposit accounts, as well as provides business savings and checking, money market, cash management accounts, and municipal deposit accounts. The company?s loan portfolio comprises commercial real estate and multi-family loans; commercial business loans; residential real estate loans; home equity loans; and consumer loans consisting of indirect mobile home loans, and personal secured and unsecured loans. It also sells insurance products, including commercial and personal insurance, surety bond, life, disability, and long-term care coverage products. In addition, the company offers risk management consulting services comprising altern ative risk and self-insurance services, claims investigation and adjusting services, and third party administration services for self insured workers? compensation plans. Further, it provides employee benefits plan and compensation consulting services. Additionally, First Niagara Financial Group offers wealth management services that manage client funds utilizing various third party investment vehicles consisting of stocks, bonds, mutual funds, and annuities, as well as other investment products, such as individual retirement accounts, education savings plans, and retirement plans. As of December 31, 2010 it operated 257 bank branches, including 115 in Upstate New York and 142 branches in Pennsylvania. The company was founded in 1870 and is based in Buffalo, New York.
Advisors' Opinion:- [By Rick Munarriz]
Friday
Things are usually quiet on Fridays, but that won't stop First Niagara Financial Group (NASDAQ: FNFG ) from reporting. The parent company of First Niagra Bank -- a community banker with 430 branches and $37 billion in assets -- is expect to post marginal improvement on the top and bottom lines. - [By Eric Volkman]
First Niagara Financial (NASDAQ: FNFG ) will return money to two separate classes of its stockholders. The company has declared quarterly dividends for its common shares and its class B preferreds, both of which will be paid on May 15 to shareholders of record as of May 3.
- [By John Maxfield]
Given that you clicked on this article, it seems safe to assume you either own stock in First Niagara Financial (NASDAQ: FNFG ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers investors need to know about First Niagara Financial stock before deciding whether to buy, sell, or hold it.
Top Cheapest Companies To Invest In 2014: iShares Government/Credit Bond ETF (GBF)
iShares Lehman Government/Credit Bond Fund (the Fund) seeks investment results that correspond to the price and yield performance of the United States Government and investment-grade United States corporate securities of the United States bond market as defined by the Lehman Brothers U.S. Government/Credit Index (the Index). The Fund invests in a representative sample of the securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.
The Index measures the performance of United States dollar-denominated United States Treasuries, government-related securities and investment-grade United States corporate securities that have a remaining maturity of greater than or equal to one year, and have more than $250 million or more of outstanding face value. The securities must be fixed-rate and non-convertible securities.
Advisors' Opinion:- [By Jonathan Morgan]
Bilfinger SE (GBF) climbed 3.1 percent to 74.30 euros. Germany�� second-largest builder predicted a significantly stronger second half after reporting second-quarter net income of 47 million euros ($62.5 million), which was in line with analysts�� estimates.
Top Cheapest Companies To Invest In 2014: Helmerich & Payne Inc (HP)
Helmerich & Payne, Inc., incorporated on February 29, 1944, is engaged in contract drilling of oil and gases wells for others and this business. The Company's contract drilling business is composed of three reportable business segments: U.S. Land, Offshore and International Land. During the fiscal year ended September 30, 2012 (fiscal 2012), the Company's U.S. Land operations drilled in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Pennsylvania, Ohio, Utah, Arkansas, New Mexico, Montana, North Dakota and West Virginia. Offshore operations were conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea. During fiscal 2012, the Company's International Land segment operated in six international locations: Ecuador, Colombia, Argentina, Tunisia, Bahrain and United Arab Emirates. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology. Each of the businesses operates independently of the others through wholly owned subsidiaries. The Company's real estate investments located exclusively within Tulsa, Oklahoma, include a shopping center containing approximately 441,000 leasable square feet, multi-tenant industrial warehouse properties containing approximately one million leasable square feet and approximately 210 acres of undeveloped real estate. The Company's subsidiary, TerraVici Drilling Solutions, Inc. (TerraVici), is developing rotary steerable technology. As of September 30, 2012, it had 176 rigs under fixed-term contracts. During fiscal 2012, the Company leased a 150,000 square foot industrial facility near Tulsa, Oklahoma for the purpose of overhauling/repairing rig equipment and associated component parts.
U.S. Land Drilling
As of September 30, 2012, the Company had 282 of its land rigs available for work in the United States. During fiscal 2012, the Company's U.S. Land operations contributed approximately 85% of the Compan! y's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 89%. During fiscal 2012, the Company's fleet of FlexRigs had an average utilization of approximately 97%, while the Company's conventional and mobile rigs had an average utilization of approximately 11%. As of September 31, 2012, 231 out of an available 282 land rigs were working.
Off Shore Drilling
During fiscal 2012, the Company's Offshore operations contributed approximately 6% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was approximately 79%. During fiscal 2012, the Company had eight of its nine offshore platform rigs under contract and continued to work under management contracts for four customer-owned rigs. During fiscal 2012, revenues from drilling services performed for the Company's offshore drilling customer totaled approximately 56% of offshore revenues.
International Land Drilling
During fiscal 2012, the Company's International Land operations contributed approximately 9% of the Company's consolidated operating revenues. During fiscal 2012, rig utilization was 77%. As of September 30, 2012, the Company had nine rigs in Argentina. During fiscal 2012, the Company's utilization rate was approximately 52%. During fiscal 2012, revenues generated by Argentine drilling operations contributed approximately 2% of the Company's consolidated operating revenues. The Argentine drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had seven rigs in Colombia. During fiscal 2012, the Company's utilization rate was approximately 79%. During fiscal 2012, revenues generated by Colombian drilling operations contributed approximately 3% of the Company's consolidated operating revenues. During fiscal 2012, revenues from drilling services performed for the Company's customer in Colombia totaled approximately 1% of consolidated operating revenues and approximately 16% of inter! national ! operating revenues. The Colombian drilling contracts are with international or national oil companies. As of September 30, 2012, the Company had five rigs in Ecuador. During fiscal 2012, the utilization rate in Ecuador was 97%. During fiscal 2012, revenues generated by Ecuadorian drilling operations contributed approximately 2% of consolidated operating revenues. As of September 30, 2012, the Company had two rigs in Tunisia, four rigs in Bahrain and two rigs in United Arab Emirates.
Advisors' Opinion:- [By Ben Levisohn]
As a result, the knives have come out. Cowen’s analysts downgraded six stocks–Baker Hughes (BHI), Cameron International (CAM), Nabors Industries (NBR), CGG (CGG), Superior Energy Services (SPN) and Helmerich & Payne (HP)–and cut their estimates on even more. Its analysts explain why:
- [By Jon C. Ogg]
Helmerich & Payne Inc. (NYSE: HP) was reinstated as Buy with a $82 price target at Bank of America Merrill Lynch.
HomeAway Inc. (NASDAQ: AWAY) was downgraded to Equal Weight from Overweight by Morgan Stanley.
Top Cheapest Companies To Invest In 2014: China Auto Logistics Inc.(CALI)
China Auto Logistics Inc. primarily engages in the sale and trading of imported automobiles in the People?s Republic of China. It also offers financing services, including letter of credit issuance, purchase deposit financing, and import duty advances, as well as automobile value-added services, including customs clearance, storage, and nationwide delivery services to automobile dealers and agents. In addition, the company operates Websites that provide subscribers with sales and trading information for imported and domestically manufactured automobiles. Its Websites include cali.com.cn, which provides auto living public with information about auto and auto-related products and services; at188.com that provides sales and trading information about imported automobiles, as well as parts and components information; at160.com, which provides sales and trading information about domestically manufactured automobiles; and goodcar.cn that provides information relating to automoti ve products and services, including discounted gas, car washes, emergency roadside assistance, body-shop repairs, and car maintenance. The company sells automobiles to authorized dealers, free traders or wholesalers, government agencies, and individual customers. China Auto Logistics Inc. is based in Tianjin, the People?s Republic of China.
Advisors' Opinion:- [By Monica Gerson]
China Auto Logistic (NASDAQ: CALI) shares dropped 9.06% to $3.17 after the company announced 2013 results. China Auto Logistic posted its net income of $524,260, or $0.14 per share.
Top Cheapest Companies To Invest In 2014: Powershares Aerospace & Defense Portfolio (PPA)
The PowerShares Aerospace & Defense Portfolio (Fund) seeks to replicate, before fees and expenses, the SPADE Defense Index. The SPADE Defense Index is designed to identify a group of companies involved in the development, manufacturing, operations and support of United States defense, homeland security and aerospace operations.
With a portfolio defined by the underlying SPADE Defense Index, constituents represent a diversified offering of large, mid and small cap companies. The constituents also enables the Fund to capture current and future spending in areas, such as armor for vehicles and soldiers, night vision systems, border security and secure communications.
Advisors' Opinion:- [By MONEYMORNING.COM]
That's why I think investors would do well to take a good look at PowerShares Aerospace & Defense (NYSE: PPA). This is a cost-effective ETF made up of 80% defense and aerospace stocks from companies who are proven leaders.
- [By Mark Salzinger]
This industry's two largest ETFs��Shares Aerospace and Defense (ITA) and PowerShares Aerospace and Defense (PPA)��ained more than 50% last year.
Top Cheapest Companies To Invest In 2014: Five Star Quality Care Inc (FVE)
Five Star Quality Care, Inc. (Five Star), incorporated in April 2000, operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). As of December 31, 2011, the Company operated 245 senior living communities located in 30 states containing 27,159 living units, including 207 primarily independent and assisted living communities with 23,736 living units and 38 SNFs with 3,423 living units. The Company owns and operates 31 communities (2,954 living units), lease and operate 191 communities (20,811 living units), and manage 23 communities (3,394 living units). Its 245 senior living communities included 8,699 independent living apartments, 13,069 assisted living suites and 5,391 skilled nursing units. During the year ended December 31, 2011, the Company discontinued its operations on two SNFs owned and operated by it containing 271 living units and one assisted living community leased from Senior Housing Properties Trust (SNH) and operated by it containing 103 living units. In September 2012, it sold its pharmacy business to Omnicare, Inc. Effective December 31, 2013, Five Star transferred the operations of two rehabilitation hospitals, which included New England Rehabilitation Hospital located in Woburn and Braintree Rehabilitation Hospital located in Braintree, to entities affiliated with Reliant Hospital Partners, LLC.
As of December 31, 2011, the Company leased and operated two rehabilitation hospitals with 321 beds that provide inpatient rehabilitation services to patients at the two hospitals and at three satellite locations. In addition, it leased and operated 13 outpatient clinics affiliated with these rehabilitation hospitals. It also owns and operate five institutional pharmacies. In 2011, the Company acquired from unrelated parties seven assisted living communities containing 854 living units with one located in Arizona and the other six located in Indiana, or the Indiana Communities. It also commenc! ed leasing from SNH six senior living communities containing 724 living units with one located in each of Illinois and Florida and two located in each of North Carolina and Virginia.
Independent Living Communities
Independent living communities provide privacy to residents and require residents to be capable of independence. An independent living apartment usually bundles several services as part of a regular monthly charge. In addition, services are available from staff employees on a fee for service basis. As of December 31, 2011, its business included 8,699 independent living apartments in 75 communities that it operated or managed.
Assisted Living Communities
Assisted living communities consists of one bedroom units which include private bathrooms and kitchens. Services bundled within one charge usually include three meals per day in a central dining room, daily housekeeping, laundry, medical reminders and around the clock availability of assistance with the activities of daily living such as dressing and bathing. Professional nursing and healthcare services are usually available at the community as requested or at regularly scheduled times. As of December 31, 2011, its business included 13,069 assisted living suites in 185 communities that it operated or managed. .
Skilled Nursing Facilities
SNFs provide nursing and healthcare services similar to those available in hospitals. A purpose built SNF includes one or two beds per room with a separate bathroom in each room and shared dining facilities. SNFs are staffed by licensed nursing professionals 24 hours per day. As of December 31, 2011, its business included 5,391 skilled nursing units in 69 communities.
Rehabilitation Hospitals
Rehabilitation hospitals, which are also known as inpatient rehabilitation facilities (IRFs), provide intensive physical therapy, occupational therapy and speech language pathology services. Patients in IRFs receive a mi! nimum of ! three hours of rehabilitation services daily. IRFs also provides radiology, laboratory, telemetry, hemodialysis and orthotics/prosthetics services. Outpatient satellite clinics are often included as part of the services offered by IRFs. As of December 31, 2011, its two rehabilitation hospitals had 321 beds available for inpatient services and provided rehabilitation services at the two hospitals and three satellite locations. In addition, it operates 13 outpatient clinics affiliated with its rehabilitation hospitals where patients discharged from hospitals can continue their therapy programs and receive amputee, brain injury, neurorehabilitation, cardio-pulmonary, orthopedic, spinal cord injury and stroke rehabilitation services.
Institutional Pharmacies
Institutional pharmacies provide drugs at locations where patients with recurring pharmacy requirements are concentrated. The Company�� five institutional pharmacies are located in six leased commercial spaces and one owned commercial building containing a total of approximately 67,759 square feet plus parking areas for its employees and delivery vehicles.
Advisors' Opinion:- [By Laura Brodbeck]
Tuesday
Earnings Expected From: Five Star Quality Care, Inc. (NYSE: FVE), Maximus, Inc. (NYSE: MMS), Nustar Energy (NYSE: NS), D.R. Horton, Inc. (NYSE: DHI), DISH Network Corporation (NASDAQ: DISH) Economic Releases Expected: German CPI, British CPI, British PPI, US Redbook, Indian manufacturing output, Indian industrial productionWednesday
- [By Keith Speights]
Falling stars
The sky didn't fall, but it might have seemed like it this week for shareholders of Five Star Quality (NYSE: FVE ) . The stock dropped 21% after the operator of long-term-care facilities reported quarterly earnings.
Top Cheapest Companies To Invest In 2014: PIMCO Global StocksPLUS & Income Fund (PGP)
PIMCO Global StocksPLUS & Income Fund (the Fund) is a non-diversified, closed-end management investment company. The Fund invests in equity index derivative instruments relating to United States and non-United States markets, backed by a low-duration (1 to 3 year) debt portfolio with an average credit quality that is investment grade. The Fund's investment manager is Allianz Global Investors Fund Management LLC, which is an indirect wholly owned subsidiary of Allianz Global.
The Fund intends to gain substantially all of its equity index exposure by investing in equity index derivatives based on the Standard & Poor's 500 Composite Stock Price Index (S&P 500 Index), and the Morgan Stanley Capital International Europe, Australasia, Far East Index (the MSCI EAFE Index). Substantially all of the Fund's assets will be invested in a portfolio of income producing debt securities and debt-related derivative securities.
Advisors' Opinion:- [By Robert Rapier]
Note that the partnerships that have chosen to pay taxes as corporations are almost exclusively engaged in marine transportation. Outside of this category, the only publicly traded partnership that has chosen corporate taxation is Plains GP Holding (NYSE: PGP), the general partner for Plains All American Pipeline (NYSE: PAA).
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