Geoff,
I think most of your readers understand that every business is unique and therefore requires varying valuation techniques. However, I think that we could benefit from some advice from you on how to recognize what techniques are appropriate for which general type of business��For example, net-nets are easy ��in its most simplified form you could ask yourself, ��re the current assets (or some discounted version of them) greater than the total liabilities?��If the answer is yes, you know this is a net-net and should be valued as such.
But what questions would you ask to realize that a certain company is best valued on a price/book value? Maybe something like, ��oes the company have a strong intangible brands?��would clue you in that book value is not the right way to look at it? Or, ��oes the current book value represent reality?��might help you with asset-heavy companies like railroads where P/B might be misleading? Or why would you decide that book value is the most appropriate metric?
Top 10 Regional Bank Companies To Own For 2015: Jack Henry & Associates Inc.(JKHY)
Jack Henry & Associates, Inc. (JHA) provides integrated computer systems and services for in-house and outsourced data processing to commercial banks, credit unions, and other financial institutions primarily in the United States. It engages in processing transactions, automating business processes, and managing information services. The company?s Jack Henry Banking brand provides integrated data processing systems to de novo or start-up institutions and mid-tier banks, as well as markets three core banking software systems, such as SilverLake, a robust IBM i-based system designed for commercial-focused banks; CIF 20/20, a parameter-driven and easy-to-use system; and Core Director, a Windows-based and client/server system that offers intuitive point-and-click operation. Its Symitar brand supports credit unions with information and transaction processing platforms that provide enterprise-wide automation. This brand?s solutions include Episys, a robust IBM p-based system p rimarily designed for credit unions; and Cruise, a Windows-based and client/server system for credit unions. The company?s ProfitStars brand provides specialized products and services that enhance the performance of financial service organizations and corporate entities. Its iPay Technologies brand operates as an electronic bill pay for banks and credit unions with turnkey, and configurable retail and small business electronic payment platforms. JHA also offers complementary solutions comprising business intelligence and bank management, retail and business banking, member and member business services, Internet banking and electronic funds transfer, risk management and protection, and item and document imaging solutions. In addition, it provides data conversion, software implementation, training, and support services, as well as sells hardware systems. The company has strategic relationship with IBM Corporation. JHA was founded in 1969 and is based in Monett, Missouri.
Advisors' Opinion:- [By Seth Jayson]
Margins matter. The more Jack Henry & Associates (Nasdaq: JKHY ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Jack Henry & Associates's competitive position could be.
- [By Jay Jenkins]
It doesn't matter if the bank is a mega bank like Bank of America (NYSE: BAC ) , a regional player like BB&T (NYSE: BBT ) , or a third-party software provider like Jack Henry and Associates (NASDAQ: JKHY ) , the capabilities and usability of online banking services are noticeably stuck in the mud.�
- [By Jay Jenkins]
For U.S. Bancorp, a fine of this magnitude is nothing more than a slap on the wrist. However, it is a harbinger for change in how regulators view third-party relationships. Banks will now have to think long and hard about outsourcing, even to reputable companies like Jack Henry and Associates (NASDAQ: JKHY ) and Fiserv (NASDAQ: FISV ) .�
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Jack Henry & Associates (Nasdaq: JKHY ) , whose recent revenue and earnings are plotted below.
10 Best Railroad Stocks To Invest In Right Now: Kawasaki Heavy Industries Ltd (KWHIY)
Kawasaki Heavy Industries Ltd (KHI), incorporated on October 15, 1896, is a global manufacturer of transportation equipment and industrial goods. KHI manufactures ships, rolling stock, aircraft and jet engines, gas turbine power generators, environmental and industrial plants, and range of manufacturing equipment and systems. KHI also produces consumer products, such as Kawasaki-brand motorcycles and personal watercraft. KHI�� business is divided into seven operations: shipbuilding, rolling stock and construction machinery, aerospace, gas turbines and machinery, plant and infrastructure engineering, consumer products and machinery, and hydraulic machinery.
Kawasaki Shipbuilding Corporation, which is the company of this segment, is engaged in building gas carriers and submarines, which require advanced design and construction technologies. It offers
a range of liquefied natural gas (LNG) carriers, extending from small carriers with cargo tank capacities of 19,000 cubic meters to large carriers with capacities of 177,000 cubic meters. It also developed and offered in its lineup a pressure build-up type LNG carrier for short distance and small-volume transportation. The Company�� shipbuilding operations include products, such as LNG carriers, liquefied petroleum gas (LPG) carriers, container ships, very large crude carriers (VLCCs) and other types of tankers, bulk carriers, high speed vessels, submarines, maritime application equipment.
KHI�� rolling stock production systems are located in Hyogo and Harima in Japan and in Lincoln, Nebraska, and Yonkers, New York, in United States. Kawasaki completed its light rail vehicle (LRV), dubbed SWIMO. It also is developing efSET (Environmentally Friendly Super Express Train) which achieves a service speed of 350 kilometers per hour (km/h). Regarding the construction machinery business, Kawasaki has arranged a business alliance with Hitachi Construction Machinery Co., Ltd., and TCM Corporation. As of April 1, 2009, the Compa! ny split off its construction machinery business as a wholly owned subsidiary of KHI, KCM Corporation.
KHI is the prime contractor for the development of the MOD�� large-scale XP-1 and C-X aircraft. In the commercial aircraft field, KHI delivered a test model of Boeing�� 787 Dreamliner passenger aircraft. KHI is a partner corporation in the development and production of the 787 Dreamliner.
The Gas Turbines & Machinery segment has a range of products for the energy and transportation equipment field. KHI focuses to expand its global business by offering solutions for its customers that include a lineup of in-house developed gas turbines together with product support and maintenance. During the year ended December 31, 2008, the 8MW-class power-generating capacity Kawasaki Green Gas Engine had 4,000 hours of operational testing.
The plant and infrastructure engineering segment encompasses the operations of Kawasaki Plant Systems, Ltd. (K Plant), which undertakes projects to supply energy-related, industrial infrastructure, environmental preservation systems and equipment, and the operations of the parent company�� Industrial Facilities and Tunneling Equipment Division, which mainly focuses on LNG tanks and diverse other storage tanks along with shield machines and tunnel-boring machines. The Anhui Conch Kawasaki Energy Conservation Equipment Manufacturing Co., Ltd. (CKM) is engaged in the manufacturing of PH boiler parts that are employed in waste heat power plants. CKM has commenced the manufacturing and sales of environmental preservation related products, including cement plant components, such as vertical mills, boilers for waste heat recovery power generation systems, and waste gasification systems and sewage treatment systems that can be integrated with cement kilns to enable municipal waste recycling.
The consumer products and machinery segment includes the manufacture of motorcycles, all terrain vehicles (ATVs), utility vehicles, personal! watercra! ft, general purpose gasoline engines and industrial robots. In the motorcycle line, Kawasaki launched the ZRX1200 DAEG and the Ninja ZX-6R. In the cruiser segment, Kawasaki launched its Vulcan 1700 series with developed engine and chassis. This series includes the Vulcan 1700 Voyager, a full-dress V-twin engine tourer with a load of long-distance touring equipment. In the utility vehicle category, KHI equipped the Teryx 750 series with an electronic fuel injection system, mainly for recreational use. The MULE utility-oriented vehicle series was restyled with the launch of the MULE 4010 series.
The hydraulic machinery operations include Kawasaki Precision Machinery Ltd. (KPM). It has five manufacturing and marketing facilities, which comprises KPM�� headquarters plant and the facilities
of Kawasaki Precision Machinery (U.K.) Limited; Kawasaki Precision Machinery (U.S.A.), Inc.; China based Kawasaki Precision Machinery (Suzhou) Ltd.; and Korea-based Flutek, Ltd.
Advisors' Opinion:- [By WWW.MARKETWATCH.COM]
LOS ANGELES (MarketWatch) -- Japanese stocks have ended with losses in every session this week, and sure enough, the Nikkei Average (JP:NIK) was down 0.6% in early Friday trade, though off an opening 0.8% defecit, while the Topix carried a 0.7% loss. Overnight losses for the U.S. and further strength in the yen (with the dollar falling to 楼101.28 from 楼101.56 a day earlier) helped drag the market lower, as did results from Fast Retailing Co. (JP:9983) (FRCOF) , the shares of which hold the heaviest weighting on Nikkei Average. Fast Retailing said that while its Uniqlo brand was doing great business, weakness for its J Brand luxury demin label helped send September-May profit down 4% and prompted another cut to Fast's full-year outlook. Consequently, its shares traded 0.7% lower, though rivals Takashimaya Co. (JP:8233) and J. Front Retailing Co. (JP:3086) (JFROF) also saw losses of 0.6% and 0.5%, respectively. Among other decliners, Sony Corp. (JP:6758) (SNE) lost 0.7%, Toshiba Corp. (JP:6502) (TOSYY) fell 2.1%, Kawasaki Heavy Industries Ltd. (JP:7012) (KWHIY) fell 1.5%, Toyota Motor Corp. (JP:7203) (TM) and Nissan Motor Co. (JP:7201)
10 Best Railroad Stocks To Invest In Right Now: Dominion Diamond Corp (DDC)
Dominion Diamond Corporation, formerly Harry Winston Diamond Corporation, incorporated on March 26, 2013, is focused on the mining and marketing of rough diamonds to the global market. The Company supplies rough diamonds to the global market from production received from its 40% ownership interest in the Diavik Diamond Mine (the Diavik Diamond Mine) and its 80% interest in the Ekati Diamond Mine (the Ekati Diamond Mine). Both mineral properties are located at Lac de Gras in Canada�� Northwest Territories. On March 26, 2013, the Company completed the sale of its Harry Winston luxury brand business to the Swatch Group Ltd.
The Diavik Joint Venture (the Joint Venture) is an unincorporated joint arrangement between Diavik Diamond Mines Inc. (DDMI - 60%) and Dominion Diamond Diavik Limited Partnership (DDDLP - 40%), where DDDLP owns an undivided 40% interest in the assets, liabilities and expenses. DDMI is the operator (the Operator) of the Diavik Diamond Mine. During 2012, production at the Diavik Diamond Mine was approximately 7.2 million carats, consisting of approximately 4.3 million carats produced from 1.2 million tons of ore from the A-418 kimberlite pipe, 1.9 million carats produced from 0.4 million tons of ore from the A-154 South kimberlite pipe, and 0.9 million carats produced from 0.5 million tons of ore from the A-154 North kimberlite pipe. The Diavik Diamond Mine has three ore bodies: A-154 South, A-154 North, and A-418. An additional body of mineralization, A-21, is classified as resource.
The Ekati Diamond Mine consists of the Core Zone, which includes the operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. It encompasses 176 mining leases, totaling 173,024 hectares, and hosts 111 kimberlite occurrences including the Koala, Koala North, Fox, Misery, Pigeon, and Sable kimberlite pipes. The Buffer Zone is held 58.8% by the Company. It contains! 106 mining leases covering 89,151.6 hectares, and hosts 39 known kimberlite occurrences including the Jay and Lynx kimberlite pipes. As of December 31, 2012, production from the Diavik Diamond Mine has totaled 76.6 million carats of diamonds. As of December 31, 2012, production from the Ekati Diamond Mine has totaled approximately 53.54 million carats of diamonds.
Advisors' Opinion:- [By Michael Lewis]
Diamonds may be forever, but that truism doesn't always translate to the income statement. Dominion Diamond (NYSE: DDC ) , the Canadian mine owner that until recently owned and operated the ultra-luxurious Harry Winston brand, released its fourth-quarter and year-end results to an unimpressed Wall Street. The newly reorganized company is the largest Canadian diamond purveyor, and one of the leading precious-stone companies in the world. The question is: Is the company better now as a pure mining play, compared to its time as owner of, arguably, the most illustrious name in diamond retail? Let's take a look at earnings and valuation for more clues.
- [By Rich Smith]
Toronto-based diamond miner Dominion Diamond (NYSE: DDC ) -- the company formerly known as Harry Winston Diamond -- has completed its purchase of BHP Billiton's (NYSE: BHP ) stake in the Ekati Diamond Mine, "as well as the associated diamond sorting and sales facilities in Yellowknife, Canada, and Antwerp, Belgium," Dominion Diamond announced Wednesday.
10 Best Railroad Stocks To Invest In Right Now: ePlus Inc.(PLUS)
ePlus inc., through its subsidiaries, engages in selling, leasing, financing, and managing information technology (IT) and other assets in the United States. Its Technology Sales segment involves in the direct marketing of IT equipment and third-party software solutions of Cisco Systems, HP, VMWare, NetApp, IBM, and Microsoft; and the provision of proprietary software for enterprise supply management, including order-entry and order-management, procurement, spend management, asset management, document management, distribution, and electronic catalog content management software and services. This segment also provides professional technology services in the areas of data center, storage, security, cloud enablement, and IT infrastructure that cover Internet telephony and communications, collaboration, cloud computing, virtual desktop infrastructure, network design and implementation, storage, security, virtualization, business continuity, visual communications, audio/visual technologies, maintenance, and implementation services. The company?s Financing segment offers a range of leasing and financing options for IT and capital assets, such as computers, associated accessories and software, communication-related equipment, medical equipment, industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment. It also leases and finances equipment, as well as supplies software and services directly and through relationships with vendors and equipment manufacturers. ePlus sells its products primarily through direct sales force, inside sales representatives, and business development associates to commercial customers; federal, state, and local governments; K-12 schools; and higher education institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus was founded in 1990 and is headquartered in Herndon, Virginia.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on ePlus inc. (Nasdaq: PLUS ) , whose recent revenue and earnings are plotted below. - [By alicet236]
ePlus Inc. (PLUS): President and CEO, 10% Owner Phillip G. Norton Sold 198,730 Shares
President and CEO, 10% Owner of ePlus Inc. (PLUS) Phillip G. Norton sold 198,730 shares on 05/05/2014 at an average price of $47.5. ePlus Inc. was founded in 1990 and is a Delaware corporation and began using the name ePlus inc. ePlus Inc. has a market cap of $401.106 million; its shares were traded at around $49.74 with a P/E ratio of 11.50 and P/S ratio of 0.38. ePlus Inc. had an annual average earnings growth of 6.70% over the past 10 years. GuruFocus rated ePlus Inc.�the business predictability rank of 2-star.
10 Best Railroad Stocks To Invest In Right Now: Allianz SE (AZSEY)
Allianz SE is an integrated financial services provider. The Company serves approximately 75 million customers in about 70 countries. Allianz SE operates and manages its activities primarily through four operating segments: Property-Casualty, Life/Health, Asset Management, and Corporate and Other. On January 12, 2009, the Company completed the sale of Dresdner Bank AG (Dresdner Bank) to Commerzbank. In May 2010, the Company acquired six solar parks, each with up to one megawatt peak capacity, from BP Solar Italy, a unit of BP Alternative Energy.
Property-Casualty and Life/Health
The Company offers a variety of insurance products to both private and corporate customers, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit and travel insurance. The Company offers a range of life and health insurance products on individual and group basis, including annuity, endowment and term insurance, unit-linked and investment- oriented products, as well as full private health and supplemental health and care insurance. Its product portfolio includes a wide array of property-casualty and life/health insurance products for both private and corporate customers. Its insurance products are distributed through a range of network of self-employed agents, brokers, banks and other channels.
Asset Management
The Company acts as a global provider of institutional and retail asset management products and services to third-party investors and provides investment management services to the Allianz Group�� insurance operations. The products for retail and institutional customers include equity and fixed income funds, as well as alternative products. The United States and Germany as well as France, Italy and the Asia-Pacific region represent the primary asset management markets. As of December 31, 2009, total assets managed by its Asset Management operations were ��1,202 billion. The Company serves a range of retail a! nd institutional asset management clients. Its institutional customers include corporate and public pension funds, insurance and other financial services companies, governments and charities, as well as financial advisors. Its retail asset management business is primarily conducted under the brand name Allianz Global Investors (AGI) through its operating companies worldwide. In the Company�� institutional asset management business, it operates under the brand names of its investment management entities (PIMCO, RCM, AGI Capital), with AGI serving as an endorsement brand.
Corporate and Other
The Corporate and Other includes Holding & Treasury, Banking and Alternative Investments. The Holding & Treasury includes the management and support of the the Company�� business through its strategy, risk, corporate finance, treasury, financial
control, communication, legal, human resources and technology functions. The Banking consists of the banking activities in Germany, France, Italy and Central and Eastern Europe. The banks offer a range of products for corporate and retail clients with the main focus on the latter. As of December 2009, it owned 130 banking agencies. The Alternative Investments provides global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors mainly on behalf of the Company. The Alternative Investments also includes certain fully consolidated private equity investments.
Advisors' Opinion:- [By Johanna Bennett]
But AirAsia (AIRA.KL) shares, which were also downgraded by AllianceDBS, fell 8.5% on the local exchange. The airplane�� lead insurer, Allianz SE (AZSEY), and the manufacturer, Airbus Group (EADSY), each fell roughly 1% in early afternoon market action.
10 Best Railroad Stocks To Invest In Right Now: Navidea Biopharmaceuticals Inc (NAVB)
Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.
Lymphoseek
Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-center Phase II trial and three multi-center Phase II trials inv! olving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.
AZD4694
AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has been studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.
RadioImmunoGuided Surgery
As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.
The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.
Advisors' Opinion:- [By Erin McCarthy]
Navidea Biopharmaceuticals Inc.(NAVB) said Chief Executive Mark Pykett would leave that post around the end of this month as the company restructures its biopharmaceutical product pipeline.
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Tuesday’s session are Toll Brothers Inc.(TOL) and Navidea Biopharmaceuticals Inc.(NAVB)
- [By Sean Williams]
Another prime example here would be Navidea Biopharmaceuticals' (NYSEMKT: NAVB ) Lymphoseek which is an injectable agent used in external lymph-node imaging and intra-operative lymphatic mapping. In English this means it will dramatically improve the staging and treatment options for patients with breast cancer. Being that breast cancer was also listed as a commonly misdiagnosed cancer, this is a big step in the right direction for patient care.
- [By Keith Speights]
3. Navidea Biopharmaceuticals (NYSEMKT: NAVB )
Some investors were likely befuddled by Navidea's stock action earlier this year. The company received FDA approval in March for Lymphoseek, its radiopharmaceutical agent used for imaging lymph nodes in patients with breast cancer or melanoma. That was great news, but shares dropped quickly and still haven't returned to previous levels.
10 Best Railroad Stocks To Invest In Right Now: Blue Nile Inc.(NILE)
Blue Nile, Inc. operates as an online retailer of diamonds and fine jewelry worldwide. Its fine jewelry selection includes diamond, gemstone, platinum, gold, pearl and sterling silver jewelry, and accessories, as well as wedding bands, earrings, necklaces, pendants, bracelets, and watches. Blue Nile, Inc. sells its products through the Web sites bluenile.com, bluenile.ca, and bluenile.co.uk. The company was formerly known as Internet Diamonds, Inc. and changed its name to Blue Nile, Inc. in November 1999. Blue Nile, Inc. was founded in 1999 and is headquartered in Seattle, Washington.
Advisors' Opinion:- [By Holly LaFon]
We think the next chapter of Internet growth will be driven by increasing broadband penetration and mobile 3G rollouts globally. Baron invests in the global Internet in two ways: 1) U.S. based Internet companies that have substantial international businesses, and 2) foreign based Internet companies. Several Baron portfolio holdings such as Google, Inc. and priceline.com, Inc. receive 50% or more of their revenues outside the U.S., and we think the faster growth of Internet access in emerging economies will be a substantial benefit to these companies. Other Baron portfolio companies such as LinkedIn Corp. (LNKD) and Blue Nile, Inc. (NILE) are also accelerating their efforts to penetrate international markets in 2012 and beyond.
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