Latest Stock Advice
Activist investors are circling: uncover dividend-paying companies with resilient payouts and strong fundamentals from TSI’s latest Globe and Mail feature.
Nutrien Ltd. offers exposure to potash and nitrogen prices, a stable retail base and strong profitability.
Groupe Dynamite Inc. is a high‑quality specialty retailer with gains ahead.
Teck Resources Ltd. is a solid bet on higher copper prices with its big merger winning approvals
Become a Successful Investor
When investing in rare earth metals, you need to look at the unique geographical and political environment the mining company produces in.
There will always be stocks you’ll wish you bought, especially after you see their growth. Here’s what to look for so you won’t miss out.
ALCOA INC. $8.99 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $11.7 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.alcoa.com) plans to split itself into two separate firms.
One will focus on Alcoa’s upstream operations, which include mining bauxite ore and refining it into bulk aluminum products. This business will be the world’s fourth-largest aluminum producer, with $13.2 billion of annual revenue and $2.8 billion of gross earnings.
The other company will focus on engineered aluminum products, such as components for cars and jet engines. This firm has $14.5 billion of annual revenue and $2.2 billion of gross earnings.
...
One will focus on Alcoa’s upstream operations, which include mining bauxite ore and refining it into bulk aluminum products. This business will be the world’s fourth-largest aluminum producer, with $13.2 billion of annual revenue and $2.8 billion of gross earnings.
The other company will focus on engineered aluminum products, such as components for cars and jet engines. This firm has $14.5 billion of annual revenue and $2.2 billion of gross earnings.
...
STANLEY BLACK & DECKER INC. $107 (New York symbol SWK; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 153.2 million; Market cap: $16.4 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.1%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) earned $234.1 million in the three months ended October 3, 2015, down 5.0% from $246.4 million a year earlier. The company spent $192.1 million on share buybacks in the quarter, so per-share earnings gained 1.3%, to $1.55 from $1.53.
Sales fell 1.7%, to $2.8 billion from $2.9 billion. Stanley gets about half of its sales from outside the U.S., so if you exclude the negative impact of currency rates, sales rose 6%. Stronger demand for its hand tools offset lower sales of its building-security products and tools for industrial users.
The company continues to benefit from a recent restructuring, while lower prices for steel and other raw materials are expanding its profit margins. As a result, Stanley now expects to earn $5.80 to $5.95 a share for all of 2015, up from its earlier forecast of $5.70 to $5.90. The stock trades at an attractive 18.2 times the midpoint of the new range.
...
Sales fell 1.7%, to $2.8 billion from $2.9 billion. Stanley gets about half of its sales from outside the U.S., so if you exclude the negative impact of currency rates, sales rose 6%. Stronger demand for its hand tools offset lower sales of its building-security products and tools for industrial users.
The company continues to benefit from a recent restructuring, while lower prices for steel and other raw materials are expanding its profit margins. As a result, Stanley now expects to earn $5.80 to $5.95 a share for all of 2015, up from its earlier forecast of $5.70 to $5.90. The stock trades at an attractive 18.2 times the midpoint of the new range.
...
Trading ETFs can work just as well in facilitating dumb moves as it does with smart moves
GENERAL ELECTRIC CO. $29 (New York symbol GE; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 10.1 billion; Market cap: $292.9 billion; Priceto- sales ratio: 2.0; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.ge.com) continues to shrink its GE Capital subsidiary as part of a plan to focus on its industrial businesses, including jet engines, medical equipment, appliances, lighting and locomotives.
Including its recent deal with Wells Fargo (see left), the company has now sold $126 billion worth of GE Capital’s assets. It should reach its goal of shrinking this business by $200 billion by the end of 2016.
After these sales, the financing business will supply just 10% of GE’s earnings, down from 42% in 2014. The Federal Reserve considers GE Capital a “systemically important financial institution,” so reducing its size should let GE avoid the tougher capitalization requirements and stress tests the Fed imposes on big lenders.
...
Including its recent deal with Wells Fargo (see left), the company has now sold $126 billion worth of GE Capital’s assets. It should reach its goal of shrinking this business by $200 billion by the end of 2016.
After these sales, the financing business will supply just 10% of GE’s earnings, down from 42% in 2014. The Federal Reserve considers GE Capital a “systemically important financial institution,” so reducing its size should let GE avoid the tougher capitalization requirements and stress tests the Fed imposes on big lenders.
...