Today’s updates cover companies beginning with the letters E-G, several of which gave investors very nice returns. I’ve included the advisor’s current advice on the pick, whenever available, and given you the return from the date of recommendation through the end of 2013.
E
Enerplus Corp. (ERF) was recommended by Internet Wealth Builder. In our Issue 747, July 24, Editor Gordon Pape wrote, “Enerplus Corp. reported a respectable first quarter, generating $173 million ($0.87 per share, Canadian currency) in funds flow, thanks to an improvement in natural gas prices, hedging gains, and record production levels from its U.S. Marcellus and Ford Berthold assets. The company said that 40% of total production is now attributable to U.S. assets. Average production was 87,183 barrels of oil equivalent per day (boe/d). Operating costs were $10.37 per boe, in line with guidance. However, the company’s financials still leave much to be desired, which is why I rate it as higher risk. The adjusted payout ratio during the quarter was 126% which, although well down from 254% a year ago, is still too high. Therefore, I am changing my guidance to hold. Enjoy the cash flow but don’t add to positions at this level.” The shares have appreciated 41.29%.
F
Fidelity Select Industrials (FCYIX), was chosen by Jack Bowers of Fidelity Monitor & Insight, and returned 28.93% to investors. Bowers wrote, “FCYIX is a global infrastructure play. Much of the world is playing catchup when it comes to transportation, power generation, clean water and medical technology. And the shale boom is boosting domestic demand for industrial supplies and transportation services while at the same time reducing the cost of providing them. Low-cost foreign competition is not a problem for these firms—emerging country copy-cats are neither willing nor able to compete because the markets are too specialized and the quality and reliability standards are too high.”
Fidelity Total International Equity (FTIEX) and Fidelity Total Emerging Markets (FTEMX), were picked by Jim Lowell of Fidelity Investor. Lowell noted, “Total International Equity is run by one of my newsletter’s top-ranked international fund manager teams: Ashish Swarup, Jed Weiss and Alex Zavratsky. Investing in international companies, including those in the emerging markets region, the MSCI All Country World ex U.S. Index is the fund’s bogey and benchmark.” The fund gained 11.99%. Fidelity Total Emerging Markets declined by 0.09%.
First Solar, Inc. (FSLR) was recommended by Schaeffer’s Investment Research. Bernie Schaeffer commented, “First Solar has created an orderly pattern of higher highs and higher lows since its June 2012 bottom, and recently broke out of an ascending triangle pattern—suggesting the next leg higher is now underway.” He was proven right, as First Solar’s shares appreciated 76.14%.
First Trust U.S. IPO Index Fund (FPX), chosen by Jim Lowell, Forbes ETF Advisor, rose 23.95%. Lowell said, “The First Trust U.S. IPO follows the IPOX-100 U.S. Index, which is made up of the 100 largest, best-performing, most liquid U.S. initial public offerings (measuring the IPO’s performance during their first 1,000 trading days). In my view, this is a hidden 2013 gem. The top three sectors are information technology (30.5%), consumer discretionary (23.5%) and energy (20.9%). Unlike a purely speculative IPO stock, this ETF is an overlooked mix of mainly proven companies using the public market to raise funds—a capital idea.”
G
General Dynamics Corp. (GD) was picked by Investment Quality Trends. Editor Kelley R. Wright commented, “We believe the fear of ‘sequestration’ is overdone and already baked into the share price. There will be cuts made to the Defense department’s budget but GD is so well managed and diversified any cuts will be offset by their technology and Gulfstream business. With a TTM free cash flow per share of $7.65, the payout ratio is just 26.67%. The five-year return on equity is just over 20% and the long-term debt to equity is 20%. The five- and 10-year dividend growth for GD is 15.36% and 12.87% respectively.” The shares paid off, giving subscribers a 38.09% return.
GlyEco, Inc. (GLYE), recommended by Dr. John L. Faessel of On the Market, is down by 36.84%.
Google, Inc. (GOOG) was chosen by $100k Portfolio. Editor Ian Wyatt updated his recommendation in our Issue 751, November, 20, saying “Buy on Pullbacks. Google shares are finally getting the respect they deserve. On October 17, the company reported a great quarter. The results sent shares soaring 14% in a single trading session. ... Even at $1,000 per share, Google shares remain fairly priced. ... I’ll continue to hold my position. Google remains one of my favorite ways to invest in the growth of the Internet and mobile—I recommend buying the stock at around $1,000.” The shares are up 52.83%.
Great Southern Bancorp, Inc. (GSBC), picked by Bob Howard of Positive Patterns, has gained 20.01%. Howard gave us this update in issue 747, July 24: “Here is just the type of bank that should benefit from an improving real estate market. GSBC (SW Missouri locations mostly) was a ‘good bank’ and rather than cut back, sell stock and retreat as so many bad banks were forced to do, GSBC had no major problems and actually added branches by purchasing troubled banks from the FDIC (as only a chosen few were allowed to do). While others sold preferred stock and common stock just to stay alive, sharp GSBC has not sold stock and has added branches. And we should see the positive results of all this in 2014 and 2015 with much higher earnings.”
Green Mountain Coffee Roasters, Inc. (GMCR) was recommended by Todd Salamone of Schaeffer’s Investment Research. Salamone noted, “Three out of the company’s last four earnings reports were positive surprises, pointing to a strong fundamental backdrop for the Keurig parent. Even though GMCR is now trading back above several key short-term, intermediate-term and long-term moving averages we follow, there’s plenty of skepticism still levied against the stock. Following a nosedive by GMCR in the first half of 2012, short interest surged, and is now lingering at an all-time high. This sets the stage for GMCR to benefit from short-covering support as the security extends its recent technical rebound.” The shares have risen by 87.96%.