Rupert Hargreaves
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Are these international tobacco companies a better investment than Philip Morris?
By Rupert Hargreaves - May 9, 2013 | Tickers: BTAFF, JAPAF, PM
US investors have very little choice when it comes to investing in an international tobacco company. Actually, they have almost no choice as the only company that has its primary listing in New York and sells tobacco internationally is Philip Morris International (NYSE: PM).
Philip Morris is the biggest tobacco company in the world but would US investors benefit from some diversification into other global tobacco players.
There are three more »
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Steel and Iron Ore: Part 2
By Rupert Hargreaves - May 9, 2013 | Tickers: GGB, PKX, TX
In the first part of this piece I looked at the state of the Iron ore industry and how there is profit to be made from undervalued miners. This part focuses on the steel market, its outlook and some undervalued steel producers.
The world demand for steel continues to grow
During April, the World Steel Association released its short range outlook for 2013-2014, forecasting that global steel use will increase more »
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Steel and Iron Ore: Part 1
By Rupert Hargreaves - May 9, 2013 | Tickers: MT, CLF, VALE
Many investors believe that the price of Iron ore is set to slide lower and lower as steel demand from both China and Europe disappears, driving all iron ore producers onto the rocks as they grapple with falling profits.
While some of this is true, I believe it only applies to high cost producers, as while the price of iron ore has seen some weakness during the past year, it more »
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A Quick Rundown of Master Limited Partnerships
By Rupert Hargreaves - May 9, 2013 | Tickers: EPD, KMP, STON 130622C00025000.DL, TNH
A Master Limited Partnership is a publicly traded partnership. In reality this means that the company is a partnership in a legal sense, with several partners pooling their money together to start a company, which is then overseen by a person or entity that is called the general partner. Unlike normal partnerships, master limited partnership partners are have limited liability.
What are the benefits?
With this structure, partners have access more »
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These 3 Companies Are Diluting Shareholder Value
By Rupert Hargreaves - May 8, 2013 | Tickers: DCIX, HCP, TWO
As a value investor, one thing that always puts me off investing in a company is the dilution of shareholder value through constant issuance of new stock.
Although it's sometimes done with the best intentions in mind, such as the re-payment of debt or increasing CAPEX spending, stock issuance can completely erode shareholder value on a per share basis. That said, it can also benefit shareholders over the longer more »
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Don't Discount This Solid Tech Stock Just Yet
By Rupert Hargreaves - April 28, 2013 | Tickers: HPQ, IBM, SPLK
Last week, International Business Machines (NYSE: IBM) shocked the market when it reported earnings. For the first time in eight years, the company missed analyst estimates and the resulting 7% drop in IBM's share price would have whacked 120 points off the Dow - luckily, the rest of the index remained strong.
Obviously, IBM's first miss in eight years really panicked investors, but I believe that this could be more »
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Should Tobacco Investors Shun This Company and Look Elsewhere?
By Rupert Hargreaves - April 27, 2013 | Tickers: MO, LO, PM
Philip Morris' (NYSE: PM) first quarter earnings, although strong, highlight the company's main weakness and Achilles heel.
The strong U.S. dollar managed to wipe out $0.07, or 5% of the company's EPS in the first quarter. The company also sold 6.5% fewer cigarettes as both the economic situation in Europe and higher taxes in the Philippines sent customers away from its brands.
Philip Morris is more »
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Finding Value in Oil Service Stocks
By Rupert Hargreaves - April 27, 2013 | Tickers: BHI, NBR, NOV, RDC
I'm in this business to make money, I am also a disciple of Benjamin Graham, so naturally I am always on the lookout for stocks that offer deep value, and right now, some of the best value I can find is in oil services stocks, which have been sold off recently due to the falling price of oil.
In practice, the panic selling that has been spurred by the more »
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Don't Jump on the SeaWorld Ride Just Yet
By Rupert Hargreaves - April 27, 2013 | Tickers: FUN, SEAS, SIX
Like any normal hotly anticipate IPO, theme park owner SeaWorld Entertainment (NYSE: SEAS) surged in its first day of trading, closing up 24% even after pricing at the high end of its IPO range.
At a price of $33.5 a share, the company trades on a ttm P/E of 36 and a price to book ratio of 5.5, even though the company has made a loss in more »
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Are These Dividends Safe?
By Rupert Hargreaves - March 13, 2013 | Tickers: AZN, PBI, TWO, WIN
'Cliffs Natural Resources the biggest U.S. iron ore producer, fell the most in more than three years after cutting its quarterly dividend by 76 percent and announcing a share sale to repay debt.'
'Cliffs reduced the payout to 15 cents a share, the Cleveland-based company said in a statement after the close of trading yesterday. That erases the increase made in March, when Cliffs raised the dividend to 62 more »
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Which One of Berkshire's New Additions Should You Buy?
By Rupert Hargreaves - March 11, 2013 | Tickers: ADM, DE, PCP, VRSN
In the middle of February, with much fanfare, the newest additions to Berkshire's portfolio were announced. These stocks were immediately bid up after hours, and many investors and fund managers sought to emulate Berkshire's actions in order to make a quick profit.
Buying into any of these stocks then would have been silly. There was so much fuss around the stocks that they jumped quick, and were bound more »
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Three Future Winners You Should Look At
By Rupert Hargreaves - March 10, 2013 | Tickers: CTB, CYBX, SONC
It can be hard to pick future winners. In fact, it is almost impossible to consistently pick small cap stocks that are destined for greatness. However, based on vigorous screening criteria, I have picked three stocks that I believe are destined for greatness, based on their current financial information.
I have been searching for future winning equities based on the following criteria:
- Small market cap. – greater than $300 million but more »
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Three Stocks for the Long Haul
By Rupert Hargreaves - March 9, 2013 | Tickers: CL, V, WFC
When looking for stocks to buy and hold for the long-term, two points are very important. Firstly, there is size, since in long-term investing bigger is better. Second is the requirement for the company to be the best in the market and sector, which gives it a competitive edge. If the company is the best in the sector now, it is highly likely that it will continue to be so more »
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Investing in Investing
By Rupert Hargreaves - March 8, 2013 | Tickers: ETFC, IBKR, IVZ, NDAQ
"Reuters: Investors in funds worldwide poured $11 billion into U.S. stock funds in the last week of January, the most since September 2011, as the Dow Jones industrial average flirted with the psychologically important 14,000 level, data from EPFR Global showed on Friday.
The solid demand for stock funds last month was a sharp contrast from 2012. Investors have given $53.8 billion to stock funds worldwide in more »
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Dollar General and Inventory
By Rupert Hargreaves - March 7, 2013 | Tickers: DG, DLTR, FDO
Dollar General's (NYSE: DG) balance sheet appears to have some holes in it. Under analysis, the company has a solid current ratio; a key metric of the company's short term ability to finance itself. However, when the quick ratio is calculated (a much more vigorous and in depth ratio than the current) the ratio highlights that Dollar General is not able to cover its liabilities falling due within more »
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Where To Invest: Coke, Pepsi or Dr Pepper?
By Rupert Hargreaves - March 6, 2013 | Tickers: KO, DPS, PEP
Coca-Cola (NYSE: KO) has been responsible for producing some of the best returns for shareholders in the market over the past 100 years, but will the company continue to do so? Could it be time to consider investing in another beverage company?
Well, Coke's closest competitor is obviously PepsiCo (NYSE: PEP), followed by Dr Pepper Snapple (NYSE: DPS). Both Dr Pepper and Pepsi have always been thought of as more »
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Big Tobacco Is Still Growing
By Rupert Hargreaves - March 6, 2013 | Tickers: MO, LO, PM
Most people will say, 'I don't want to invest in tobacco, the industry is dying'. However, this is not the case. In reality, the tobacco industry is still as strong as it ever was, even if there are a few anti-tobacco laws around.
Despite the usual worries around declining tobacco consumption, 2012 was yet another record year for tobacco companies.
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Can Tobacco Companies Sustain Their Growing Debt?
By Rupert Hargreaves - March 6, 2013 | Tickers: MO, LO, PM, RAI
I am not ashamed to admit it--I think tobacco stocks are some of the best investments in the market. Without a doubt they have provided the best investor returns around. Even with increasing tobacco regulation all over the world, tobacco companies continue to outperform the rest of the market in terms of shareholder returns, profit margins, and sustainability.
However, in recent years a trend has been developing amongst tobacco companies more »
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Can Ford Sustain Its Debt?
By Rupert Hargreaves - March 6, 2013 | Tickers: F, GM, VLKAY
For the past year or so, I have been contemplating buying Ford (NYSE: F). I believe the company is really quite undervalued against the rest of its sector and the wider market. However, there is one thing that worries me: the company's debt.
Debt level
$US Millions
2007
2008
2009
2010
2011
Net debt
$117,732
$114,244
$88,967
$68,418
$63,722
Long-term debt
$107,478
$90 more »
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Berkshire Hathaway Likes DirecTV, But Should You?
By Rupert Hargreaves - March 6, 2013 | Tickers: CMCSA, DTV, VIAB
Like all investors, I pay attention to what Berkshire Hathaway and Warren Buffett are doing, not least because they have the ability to move the markets, which can be handy in formulating an investment strategy. However, recently I was surprised by his increased position in DirecTV (NASDAQ: DTV)
DirecTV could be a good investment, income and cash flows are growing while the company continues to increase investor returns. However, there more »