NEW YORK (TheStreet) -- Earnings should be a key driver of any fundamental valuation. This week, a large number of companies will be releasing their quarterly earnings results. Here are three companies found to be undervalued by the ModernGraham valuation model and suitable for either the defensive investor (one who is not willing to undertake substantial research) or the enterprising investor (one who is willing to undertake substantial research).
Freeport-McMoRan Copper & Gold (FCX) is set to release its earnings premarket Thursday, and according to its latest ModernGraham valuation, the company does not pass the requirements of the defensive investor, as it has not consistently paid dividends over the last 10 years, and it has not shown earnings stability over the last 10 years. But it does pass the requirements of the enterprising investor, though it has a higher level of debt relative to current assets than the investor type likes to see.
From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) -- EPSmg is a 5 year weighted average of the annual earnings per share figures -- figure for 2009 to be very low in relation to 2013. As it stands, the EPSmg have grown from a loss of $1.67 to a gain of $3.48, indicating a high level of growth that would appear to significantly outpace the market's implied estimate of 0.45% earnings growth. This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth. If the company can demonstrate earnings greater than cents for the first quarter, this valuation should be even better.
Hot Airline Stocks To Buy Right Now: Seanergy Maritime Holdings Corp (SHIP)
Seanergy Maritime Holdings Corp., through its subsidiaries, provides seaborne transportation of dry bulk commodities. As of May 7, 2013, the company�s fleet consisted of 7 drybulk carriers, including 2 Panamax, 2 Supramax, and 3 Handysize vessels with a total carrying capacity of approximately 326,255 dwt. Its fleet carries various dry bulk commodities, including coal, iron ore, and grains, as well as bauxite, phosphate, fertilizer, and steel products. Seanergy Maritime Holdings Corp. was founded in 2008 and is based in Athens, Greece.
Advisors' Opinion:- [By Roberto Pedone]
Another stock that looks poised to trigger a near-term breakout trade is Seanergy Maritime (SHIP), which provides transportation solutions in the dry bulk shipping sector through its vessel-owning subsidiaries for a range of dry bulk cargoes, including coal, iron ore, and grains, bauxite, phosphate and steel products. This stock has been red hot so far in 2013, with shares up a whopping 63%.
If you take a look at the chart for Seanergy Maritime, you'll notice that this stock has just started to spike back above both its 50-day and 200-day moving averages with above-average volume. In fact, volume for SHIP over the last few weeks has been showing bullish flows as the stock has flirted with those key moving averages. This move is quickly pushing shares of SHIP within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in SHIP if it manages to break out above some near-term overhead resistance at $1.74 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action 12,297 shares. If that breakout hits soon, then SHIP will set up to re-test or possibly take out its next major overhead resistance levels at $2.06 to $2.09 a share. Any high-volume move above those levels will then put $2.19 to its 52-week high at $2.71 into range for shares of SHIP.
Traders can look to buy SHIP off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $1.44 a share. One could also buy SHIP off strength once it takes out $1.74 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Rebecca McClay]
And dry bulk shippers like FreeSeas Inc. (Nasdaq: FREE), Seanergy Maritime Holdings Corp. (Nasdaq: SHIP), and Eagle Bulk Shipping Inc. (Nasdaq: EGLE) are noting big gains today as shipping rates strengthen. FREE is up 8%, SHIP is up 13%, and EGLE is up 7% as capesize shipping rates increased overnight by about 10%, exceeding $20,000 for the first time since January 2012.
10 Best Defensive Stocks To Invest In Right Now: Apartment Investment and Management Co (AIV)
Apartment Investment and Management Company (Aimco), incorporated on January 10, 1994, is a self-administered and self-managed real estate investment trust (REIT). The Company is engaged in the ownership and operation of a portfolio of apartment properties. Through its wholly owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, it owns majority interests in AIMCO Properties, L.P., which it refers to as the Aimco Operating Partnership. The Company conducts substantially all of its business and owns substantially all of its assets through the Aimco Operating Partnership. As of December 31, 2011, Aimco�� portfolio of owned and/or managed properties consisted of 518 properties with 93,694 apartment units.
During the year ended December 31, 2011, the Company acquired limited partnership interests in 12 real estate partnerships that owned 15 properties and in which its affiliates served as general partner. During 2011, it acquired a vacant, 126-unit property located in Marin County, north of San Francisco, California. During 2011, it acquired 50% interest in entities that owned four contiguous properties with 142 units located in La Jolla, California. During 2011, it sold 67 consolidated properties. During 2011, the Company owned general and limited partner interests in real estate partnerships that owned approximately 123 properties.
Property Operations
The Company�� owned real estate portfolio consists of two business components: conventional and affordable property operations. Its conventional property operations consist of market-rate apartments with rents paid by the resident and included 198 properties with 62,834 units in which it held an average interest of 93% as of December 31, 2011. The Company�� affordable property operations consist of apartments with rents that are generally paid, in whole or part, by a government agency and consisted of 172 properties with 20,612 units in which it held an average interest of 59% as of December 31, 2011. The Compa! ny�� property operations are organized into two geographic areas, the West and East.
Portfolio Management
As of December 31, 2011, the Company�� affordable portfolio included 172 properties with 20,612 units. As of December 31, 2011, its conventional portfolio included 198 properties with 62,834 units in 33 markets.
Advisors' Opinion:- [By Sean Williams]
Apartment Investment & Management Co. (NYSE: AIV )
When long-term lending rates began rising dramatically just a few weeks ago, anything related to the housing sector dove, including apartment rental community operator Apartment Investment & Management, better known as AIMCO. Investors who sold may have made a big mistake, as rental communities look to be stronger than ever as the housing sector gets caught in a nasty catch-22. - [By Marc Bastow]
Residential apartments real estate investment trust (REIT) Apartment Management and Investment Company (AIV) raised its quarterly dividend 8% to 26 cents per share, payable on Feb. 28 to shareholders of record as of Feb. 14.
AVI Dividend Yield: 3.74%
10 Best Defensive Stocks To Invest In Right Now: Dialog Semiconductor PLC (DLG)
Dialog Semiconductor Plc creates integrated, mixed signal integrated circuits (ICs), optimized for personal portable, short-range wireless, lighting, display and automotive applications. The Company operates in three business segments: Mobile Systems, Automotive and Industrial, and Connectivity. The Mobile Systems segment includes its power management and audio chips especially designed to meet the needs of the wireless systems markets and a range of advanced driver technologies for low power display applications - from Passive Matrix Organic Light Emitting Diodes (PMOLEDs), to electronic paper and Micro Electro-Mechanical Systems (MEMS) displays. The Automotive and Industrial segment consists of products, which address the safety, management and control of electronic systems in cars and for industrial applications. The Connectivity segment includes activities, such as short-range wireless, digital cordless and voice over Internet protocol (VoIP) technology. Advisors' Opinion:- [By Jonathan Morgan]
Dialog Semiconductor Plc (DLG) surged 6.5 percent to 12.55 euros, its highest price in two months, after Apple Inc. (AAPL), the company�� biggest customer, reported fiscal third-quarter revenue and iPhone sales that beat analysts��estimates.
- [By Jonathan Morgan]
Direct Line (DLG) dropped 2.5 percent to 212.6 pence. RBS sold 300 million shares at 210 pence apiece in its third sale of a stake in the insurance company, according to a statement. The bank, which is majority owned by the U.K. government, reduced its holding in Direct Line by 20 percent to 28.5 percent. RBS slipped 1.3 percent to 364.1 pence.
10 Best Defensive Stocks To Invest In Right Now: Le Gaga Holdings Limited (GAGA)
Le Gaga Holdings Limited engages in cultivating, processing, and distributing vegetables, fruits, and tea leaves in the People�s Republic of China and Hong Kong. The company is also involved in cultivating and selling fir trees. It offers solanaceous vegetables, including sweet peppers, tomatoes, eggplants, pumpkins, and cucumbers; leafy vegetables comprising flowering Chinese cabbage, baby bok choy, and baby Chinese cabbage; and cruciferous vegetables, such as broccoli and Chinese cabbage. As of March 31, 2012, the company operated 11 farms with an aggregate area of 1,671 hectares in Fujian, Guangdong, and Hebei provinces. It sells approximately 50 varieties of vegetables primarily to wholesalers, institutional customers, and supermarket chains. The company was founded in 2004 and is based in Kowloon, Hong Kong.
Advisors' Opinion:- [By Monica Gerson]
Le Gaga Holdings (NASDAQ: GAGA) is estimated to report its Q4 earnings.
Adobe Systems (NASDAQ: ADBE) is expected to post its Q3 earnings at $0.34 per share on revenue of $1.01 billion.
10 Best Defensive Stocks To Invest In Right Now: Anadolu Efes Biracilik ve Malt Sanayii AS (AEFES)
Anadolu Efes Biracilik ve Malt Sanayii AS is the holding company of Efes Beverage Group, based in Turkey. Its activities consist of production, bottling, selling and distribution of beer under a number of trademarks and also production, bottling, selling and distribution of sparkling and still beverages with the Coca-Cola company trademark. The Company owns and operates a number of breweries in Turkey and abroad, malt production facilities in Turkey and Russia, and also a number of facilities in Turkey and in other countries for sparkling and still beverages production. It has joint control over Coca-Cola Icecek AS (CCI), which undertakes production, bottling and distribution facilities of Coca-Cola products in Turkey, Pakistan, Central Asia and the Middle East. Also the Company has joint control over Anadolu Etap Tarm ve Gda Urunleri San. ve Tic. AS, which undertakes production and sales of fruit juice concentrates and purees in Turkey. Advisors' Opinion:- [By Andras Gergely]
The Borsa Istanbul Stock Exchange National 100 Index slid a second day after reaching a record on May 22. Anadolu Efes (AEFES) sank the most since September 2011. Otokar Otomotiv ve Savunma Sanayi AS, a Turkish producer of civilian and military vehicles, rose to an all-time high after Hurriyet Daily News reported the company could sell tanks to Saudi Arabia.
10 Best Defensive Stocks To Invest In Right Now: eLong Inc.(LONG)
eLong, Inc. operates as an online travel service provider in the People?s Republic of China. The company provides its customers with travel information and the ability to book rooms, air tickets, vacation packages, and other travel related services utilizing call center and Web-based distribution technologies. It facilitates the customers to book rooms in approximately 10,000 hotels in 450 cities across China, and fulfills air ticket reservations in approximately 80 cities across China. In addition, the company offers the ability to book rooms at approximately 100,000 hotels outside of China; and provides the customers informative content relevant to hotel and air travel decisions, including tourist and event site destination information, hotel facility information, and photos. eLong markets its services through online marketing, traditional media advertising, co-marketing with established brands of other companies, and direct marketing. The company was founded in 1999 and is headquartered in Beijing, the People?s Republic of China. eLong, Inc. operates as a subsidiary of Expedia Asia Pacific Limited.
Advisors' Opinion:- [By Seth Jayson]
eLong (Nasdaq: LONG ) reported earnings on May 13. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), eLong beat expectations on revenues and beat expectations on earnings per share. - [By Belinda Cao]
The Bloomberg China-US Equity Index (HSCEI) of the most-traded Chinese stocks in the U.S. added 0.3 percent to 103.21 yesterday. Renren, owner of a real-name social network website, jumped to the highest level since August as volumes surged. Web travel agency Elong Inc. (LONG) soared 20 percent. China Southern Airlines Co. (ZNH), Asia�� biggest carrier by passenger numbers, fell the most in a week and China Eastern Airlines Corp. slid to a three-week low.
- [By Shareholders Unite]
The main on-line competitors are:
Qunar.com, a travel website owned by Baidu (BIDU) and a few venture fundseLong (LONG), backed by Tencent (TCEHY.PK) and Expedia (EXPE). Analyst expect it to generate $163M in revenue next yearThat is pretty serious competition, needless to say. Having the backing of Baidu or Expedia offers several advantages, but Ctrip is the biggest and most established company. It's quite difficult to compare Qunar.com to Ctrip, for the simple sake that Qunar is a private company. However, there can be little doubt that it constitutes serious competition:
- [By Tom Taulli]
Strong Portfolio: Expedia has massive scale, with supply from about 200,000 hotels, 300 airlines and various car rentals and cruise lines. And EXPE sites — which�include Hotwire.com, Hotels.com, CarRentals.com and more, on top of the Expedia namesake — get�about 50 million unique visitors every month. Plus, EXPE also owns a majority stake in eLong (LONG), which is the second largest online travel company in China.
10 Best Defensive Stocks To Invest In Right Now: Sanchez Energy Corp (SN)
Sanchez Energy Corporation, incorporated on August 22, 2011, is an independent exploration and production company. The Company is focused on the acquisition, exploration and development of unconventional oil and natural gas resources onshore along the United States Gulf Coast, primarily in the Eagle Ford Shale in South Texas. The Company also has a position in the Tuscaloosa Marine Shale in Mississippi and Louisiana. As of December 31, 2012, the Company had accumulated approximately 95,000 net leasehold acres in the oil and condensate, or black oil and volatile oil, windows of the Eagle Ford Shale in Gonzales, Zavala, Frio, Fayette, Lavaca, Atascosa, Webb and DeWitt Counties of South Texas. The Company's Eagle Ford Shale acreage is consists of approximately 9,700 net acres in Gonzales County, Texas, which the Company refers to as its Palmetto area, approximately 28,400 net acres in Zavala and Frio Counties, Texas, which the Company refers to as its Maverick area, and approximately 57,100 net acres in Fayette, Lavac.
The Company owns all rights and depths on the majority of its Eagle Ford Shale acreage. The Company is evaluating other zones, which may present the Company with additional drilling locations. Several of the Company's existing wells are either producing from or have logged pay in the Buda Limestone and the Austin Chalk formations.
Eagle Ford Shale
The Eagle Ford Shale is one of the unconventional shale trends in North America. In the Eagle Ford Shale, the Company has assembled approximately 95,000 net acres with an average working interest of approximately 87%. Using approximately 120 acre well-spacing for the Company's Maverick and Marquis areas and approximately 80 acre well-spacing for its Palmetto area, the Company believes that there could be up to 973 gross (815 net) locations for potential future drilling on its acreage.
In the Company's Palmetto area, the Company has approximately 9,700 net acres in Gonzales County, Texas with an! average working interest of approximately 48%. The Company has participated in the drilling of 16 gross wells on its acreage that had an average initial 24-hour production rates between 502 and 3,139 barrels of oil equivalent per day . The Company has identified up to 237 gross (113 net) locations based on 80 acre well-spacing for potential future drilling in its Palmetto area. The Company is drilling a five-well pilot program from a single pad to test 40 acre well-spacing in its southern portion of the Palmetto area, and Ryder Scott has given the Company 80 acre well-spaced PUD locations in the same area in its December 31, 2012 reserve report.
In the Company's Maverick area, the Company has approximately 28,400 net operated acres in Zavala and Frio Counties, Texas with an average working interests of approximately 87%. The Company has drilled ten gross horizontal wells that had a range of average initial 24-hour production rates between 214 and 931 barrels of oil equivalent per day . The Company has also drilled four vertical wells that had average initial 24-hour rates between 94 and 264 barrels of oil equivalent per day . The Company tests the feasibility of a vertical well development program and compare horizontal and vertical completion economic returns. The Company has identified up to 264 gross (230 net) locations based on 120 acre well-spacing for potential future drilling on its Maverick acreage.
In the Company's Marquis area, the Company has approximately 57,100 net operated acres, the majority of which are in southwest Fayette and northeast Lavaca Counties, Texas with a 100% working interest. The Company has drilled three horizontal wells that had a range of average initial 24-hour production rates between 1,114 and 1,369 barrels of oil equivalent per day . The Company has identified up to 472 gross and net locations based on 120 acre well-spacing for potential future drilling on its Marquis acreage. The Company is also drilling a 60 acre well-spacing test in the! western ! Prost area of its Marquis area.
Other
The Company has approximately 1,000 net acres in the Haynesville Shale in Natchitoches Parish, Louisiana, which are operated by Chesapeake Energy Corporation. The majority of the Company's Haynesville leases are held by production, giving the Company and its partners the option to accelerate drilling should natural gas prices increase.
The Company competes with Chesapeake Energy Corporation, Marathon Oil Corporation, EOG Resources, Inc., Halcon Resources Corporation, Penn Virginia Corporation and Magnum Hunter Resources Corporation.
Advisors' Opinion:- [By Josh Young]
The above could have described Sanchez's (SN) acquisition of Tuscaloosa Marine Shale (TMS) acreage, announced on August 8th, 2013. Sanchez bought a position in the TMS for approximately $2,000 per acre, giving Sanchez exposure to the play and providing a nice comp for Goodrich Petroleum (GDP), the leading public company in the TMS play. Goodrich had been trading at a lower implied value per TMS acre, net of the value of its other assets. Unsurprisingly, since then Goodrich has traded up substantially (incidentally, so has Sanchez):
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