Don't follow the investors who are solely interested in a company's share price, writes Norman Rothery of The Globe and Mail, or you might miss out on companies producing better results for their shareholders, such as this one.
Most investors focus on a company's share price. They should spend more time looking at a related question��ow many shares the company has, and whether that number is growing or shrinking.
The answer can be a valuable guide to which management teams are doing the best job at creating value for shareholders.
For starters, a look at share growth can help you spot greedy CEOs who are benefiting from stock options at the expense of investors.
The problem occurs when a company grants options in bulk to its key executives when times are tough and its share price is depressed. Of course, that's exactly when firms should be doing the opposite��uying back their cheap stock instead of issuing it.
When prices improve, executives cash out the options, which waters down existing shareholders. Some companies try to mop up the dilution by buying back stock at the new, elevated prices, but that only compounds the problem. By doing so, the company destroys shareholder value by selling its stock low and buying it high.
Top 5 Managed Healthcare Companies For 2015: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Eric Volkman]
Tupperware Brands (NYSE: TUP ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.
- [By Oliver Pursche]
European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.
Top 5 Value Stocks To Own Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Teresa Rivas]
As for companies with the most upside, Marathon Petroleum (MPC) tops the list, with 63.6%, followed by Autodesk (ADSK), Ventas (VTR), salesforce.com (CRM) and American Tower (AMT). Outside the top five, the list also includes big names like Schlumberger (SLB), Halliburton (HAL), Expedia (EXPE) and General Motors (GM).
- [By Joel South and Tyler Crowe]
U.S. energy policy has been shaped by one critical event that happened 40 years ago this week: the OPEC oil embargo of 1973. Since then, the United States has embarked on an ambitious goal of drilling for our own oil and gas, as well as diversifying our energy portfolio. In this segment, Joel discusses why the shift away from OPEC domination could be a major opportunity for companies like Schlumberger (NYSE: SLB ) and Kinder Morgan (NYSE: KMI ) as well as whether OPEC is still the force it once was.
- [By Matt DiLallo]
Investors may wonder if peers like�Halliburton� (NYSE: HAL ) �and�Schlumberger� (NYSE: SLB ) �were pressured this quarter as well. Both companies have waded through the sluggish North American market by relying on growth overseas. If that trend continues, it should continue to mute some of the weakness Nabors experienced.
Top 5 Value Stocks To Own Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Ben Levisohn]
Is Caterpillar (CAT) really in the Dow? The beaten down industrial stock has gained 3.1% to $89.95 today, more than one percentage point more than Alcoa (AA), the next biggest winner with a 1.9% gain. The Travelers Companies (TRV) has gained 1.9% to $81.99, and 3M (MMM) has climbed 1.5% to $116.78. The Dow Jones Industrial Average has risen 0.9%.
To put Caterpillar’s gain in perspective, its the stock’s largest jump since May 3, when it rose 3.2%. And with time still remaining today, it could advance even higher.
We’ll chalk the big move up to the better economic news out of China last night, as well as sentiment that the global economy is picking up steam. The Caterpillar is also an industrial stock, and those are pretty popular right now.
I wouldn’t make too much of the move just yet, however. For starters, Caterpillar has been stuck in a range since March, as the following chart shows:
And, as Morgan Stanley reminded investors last week, the market might be expecting too much from Caterpillar. On Sept 5, analyst�Nicole DeBlase and team wrote:
While we agree that Mining destocking activity should cease, we see risk to Construction restocking based on our survey work ��41% of both US and China Construction dealers still think inventory is too high, and plan to reduce throughout the remainder of 2013e. Should Construction activity not pick up materially in early 2014e, we see the potential for this to remain a headwind next year ��but we do still give CAT credit for 5ppts of top-line Construction benefit from restock in 2014e. We are more bearish on Mining CapEx as we do not expect the second derivative of cuts to turn positive until 2016e.
Mogran Stanley initiated the stock as an Equal Weight with an $89 price target.
- [By Dan Caplinger]
The Dow Jones Industrials (DJINDICES: ^DJI ) is well known for giving income investors the dividend increases they like to see. All 30 Dow stocks pay dividends, and many of them consistently increase their quarterly payouts year after year. Interestingly, though, the timing of those dividend increases throughout the year reflects uneven patterns. After American Express (NYSE: AXP ) and Caterpillar (NYSE: CAT ) pay out their recently declared higher dividends in the next couple of weeks, Dow investors could go quite a while without seeing another increase.
- [By Travis Hoium]
Caterpillar (NYSE: CAT ) is up 2.3% a day after announcing a 15% boost to its quarterly dividend. Investors will now be paid a dividend of $0.60 per quarter, with the first installment going to shareholders of record on July 22. Dividends are one of the best ways for companies to provide a return for investors, and an increase like this is an indication that management is confident about the future of the company.
Top 5 Value Stocks To Own Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Jon C. Ogg]
Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.
Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.
- [By Laura Brodbeck]
Thursday
Earnings Expected From: Salesforce.com (NYSE: CRM), Intuit (NASDAQ: INTU), Gap (NYSE: GPS), Dollar Tree (NASDAQ: DLTR), Hormel Foods (NYSE: HRL), Gamestop (NYSE: GME) Economic Releases Expected: U.S. existing home sales, eurozone consumer confidence, U.S. manufacturing PMI, British retail sales, eurozone manufacturing PMI, eurozone services PMI, German manufacturing PMI, German services PMI, French manufacturing PMI, French services PMIFriday
- [By Ethan Roberts]
Shares of Dollar Tree (DLTR) were substantially lower this morning after the company reported third-quarter earnings. Dollar Tree earnings tallied 59 cents per diluted share of DLTR stock, which missed analyst estimates by two pennies.
- [By Melvin Backman]
3. Dollar store drama and coffee surge: Shares in Dollar General (DG) are down more than 7% after CEO Rick Dreiling announced that he was retiring in 2015. Activist investor Carl Icahn has a 9.4% stake in Family Dollar (FDO), which many suspect he wants to merge with Dollar General. Family Dollar stock is down 2%. Related company Dollar Tree (DLTR) is slightly negative as well.
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