These are tough times for investors who look for cheap companies. The Dow and S&P 500 jump from high to high, but this boom is credit-driven; it's the result of the monetary easing policy of the world's major government banks.
The good thing is that we can buy stocks in every market situation, whether the market has a P/E level of 30 or 10. What we need to is to look at solid growth for the single stock and not overpay for the future prospects of an asset.
When I look at the market today, I see that the financial sector, conglomerates and basic material stocks are the cheapest valued ones in terms of forward P/E, but the highest growth is predicted for the Services and Technology sector, both of which have the highest P/E ratios.
Tech stocks have made many people rich, but if you recall the dot.com bubble in 2000, many investors and private dealers lost their money because they believed that their super high-flying stock could change the world.
Facebook, Twitter and Google dominate our world today, but will they do it in 10 or 20 years too? For sure, Microsoft has survived over 40 years. Oracle, IBM and even Apple also developed into dominant players and created a long track record, but technology is a fast changing business. You can make billions in a year, but also lose all your money in the next half-decade.
Top Solar Stocks For 2015: Tower International Inc.(TOWR)
Tower International, Inc. operates as an integrated global manufacturer of engineered structural metal components and assemblies to automotive original equipment manufacturers. It offers body-structure stampings, frames, and other chassis structures, as well as complex welded assemblies for small and large cars, crossovers, pickups, and sport utility vehicles. The company?s products comprise body structures and assemblies that include structural metal components, such as body pillars, roof rails, and side sills; and Class A surfaces and assemblies that consist of body sides, hoods, doors, fenders, and pickup truck boxes. Tower International, Inc. also provides lower vehicle frames and structures, including pickup truck and SUV full frames, automotive engine and rear suspension cradles, floor pan components, and cross members; body-in-white assemblies, which comprise front and rear floor pan assemblies, and door/pillar assemblies; stamped, formed, and welded suspension com ponents, such as control arms, suspension links, track bars, spring and shock towers, shackles, twist axles, radius arms, stabilizer bars, trailing axles, and brackets; and other automotive products, and defense and aerospace products. It sells its products directly in North America, South America, Europe, and Asia. The company was formerly known as Tower Automotive, LLC and changed its name to Tower International, Inc. in October 2010. Tower International, Inc. was founded in 1993 and is headquartered in Livonia, Michigan.
Advisors' Opinion:- [By With assistance from Sofia Horta e Costa]
Tower International Inc. (TOWR), a maker of metal components for the automotive industry, fell 5.1 percent to $20.14 after saying an affiliate of Cerberus Capital Management LP plans to sell about 2.6 million shares in the company.
5 Best Cheapest Stocks To Watch For 2014: Safety Insurance Group Inc.(SAFT)
Safety Insurance Group, Inc., through its subsidiaries, provides private passenger automobile insurance products primarily in Massachusetts and New Hampshire. The company?s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured?s car occupants, and physical damage coverage for an insured?s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. It writes policies on homes, condominiums, and apartments. In addition, the company offers business owners policie s that cover apartments and residential condominiums, limited cooking restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesaling businesses. Further, it provides commercial package policies, which offer property, general liability, crime, and inland marine insurance for business enterprises; personal umbrella policies that provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner?s insurance policies; and commercial umbrella policies to clients for whom the company underwrites commercial automobile and business owner policies. Additionally, the company underwrites dwelling fire insurance, inland marine coverage, and watercraft coverage. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.
Advisors' Opinion:- [By Selena Maranjian]
Safety Insurance (NASDAQ: SAFT ) , also impressive among high dividend stocks, is a rather boring company that's good at what it does�-- offering auto insurance, primarily in New England. Recently yielding 4.7%, its dividend has grown by 8.5% annually over the past five years and 24% annually over the past decade. (Its last hike, last year, was 20%.) Its payout ratio is 67%, which is not too worrisome. Its forward P/E ratio of 11 compares favorably with the five-year average near 18, and its PEG ratio is an appealing 0.70, as well.
- [By John Udovich]
Auto sales are booming and that�� good news for large cap auto insurer�the Progressive Corporation (NYSE: PGR) along with small cap auto insurers Safety Insurance Group, Inc (NASDAQ: SAFT) and�Mercury General Corporation (NYSE: MCY) as they offer income to yield hungry investors as well as income in the form of dividends. Specifically, a Yahoo! Autos blog recently noted that last month, automakers sold 1.5 million new vehicles for the highest rate in years with�most industry forecasters expecting sales to�return to the level they hit before the 2008 recession of 16 million vehicles a year. The blog post then went on to note the three forces driving auto sales:
5 Best Cheapest Stocks To Watch For 2014: MVC Capital (MVC)
MVC Capital, Inc. (MVC) is a Business Development Company specializing in acquisition financing, management buyouts, leveraged buildups, corporate partnerships, PIPE transactions, going private transactions, private company recapitalizations, operational turnarounds, and growth and expansion capital transaction financing. It seeks to invest in mature, small, and middle-market companies. The firm seeks to invest in companies in the consumer products, industrial manufacturing and services, food and food service, financial services, value-added distribution, specialty chemicals, and security sectors. It prefers to invest in companies based in the United States. The firm typically invests between $3 million and $25 million for control and non-control stakes in companies with revenues between $10 million and $200 million and EBITDA between $3 million and $25 million. It prefers to be the lead investor in transactions and also co-invests in companies with other private equity sp onsors. The firm invests in the form of preferred and common equity, and warrants or rights to acquire equity interests; bridge loans; term loans; debt; cash flow loans; senior and subordinated loans; convertible securities; venture capital; mezzanine; and private equity investments. MVC Capital, Inc. was founded in 1999 and is based in Purchase, New York with an additional office at Chicago, Illinois.
Advisors' Opinion:- [By Holly LaFon]
Sorting by market cap, the largest, MVC Capital Inc. (MVC), has exhibited relatively little stock price movement in the past three years. Its current price of $12.10 a share is only 2.7% off of its three-year high of $12.44. Three insiders bought this stock, according to the screener, in the past month.
5 Best Cheapest Stocks To Watch For 2014: Taubman Centers Inc (TCO)
Taubman Centers, Inc. (TCO), incorporated November 21, 1973, operates as a self-administered and self-managed real estate investment trust (REIT). The Taubman Realty Group Limited Partnership (TRG) is a subsidiary of TCO that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. As of December 31, 2012, the Company owned a portfolio of 24 urban and suburban shopping centers in 12 states. The consolidated Businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia). In December 2012, it acquired additional 49.9% (100% in total) interest in International Plaza, located in Tampa, Florida. Also in December 2012, it acquired additional 25% (50% in total) interest in Waterside Shops. In January 2014, Taubman Centers Inc announced the completion of the sale of land owned by Taubman in Syosset, New York, and Taubman's interest in Arizona Mills to Simon Property Group.
The Company�� centers are located in metropolitan areas, including Charlotte, Dallas, Denver, Detroit, Los Angeles, Miami, Nashville, New York City, Orlando, Phoenix, San Francisco, Tampa, and Washington, D.C. The centers range in size between 236,000 and 1.6 million square feet of gross leasable area (GLA) and between 186,000 and 646,000 square feet of Mall GLA. Of the 24 centers, 18 are super-regional shopping centers. The Company�� centers have approximately 3,000 stores operated by their mall tenants under approximately 850 trade names. The centers have 65 anchors, operating under 14 trade names. The centers lease over 95% of leased Mall GLA to national chains, including subsidiaries or divisions of Forever 21 (Forever 21, For Love 21, XXI Forever, and others), The Gap (Gap, Gap Kids, Baby Gap, Banana Republic, ! Old Navy, and others), and Limited Brands (Bath & Body Works/White Barn Candle, Pink, Victoria's Secret, and others).
Advisors' Opinion:- [By Marc Bastow]
Super-regional shopping center real estate investment trust (REIT) Taubman Centers (TCO) raised its quarterly dividend 8% to 54 cents per share, payable March 31 to shareholders of record as of March 17.
TCO Dividend Yield: 3.12% - [By Rich Duprey]
Shopping-mall operator�Taubman Centers� (NYSE: TCO ) �announced yesterday�its second-quarter dividend of $0.50 per share, the same rate it paid last quarter after raising the payout 8%, from $0.4625 per share.
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