If you're a value investor, you can pat yourself on the back, because most people aren't cut out to handle your style. It seems easy enough, right? All you have to do is find a stock out of favor, and then buy low and sell high. Of course, if it was that easy I wouldn't need to write this, nor would you be reading. The truth is that value investing is difficult and can often take years for the gains to pan out -- something investors have a hard time waiting for. If you can be patient enough, I think both Devon Energy (NYSE: DVN ) and AK Steel Holding (NYSE: AKS ) will reward investors. Here are some reasons to be bullish.
Devon Energy
Devon has an asset base that includes both oil and natural gas plays in the U.S. and Canada. Its recent change in strategy was to shift its focus to U.S. and Canadian assets and sell off its deepwater and international plays. Starting late in 2009, the company sold nearly $10 billion in assets, which has led to a very strong balance sheet.
Hot Canadian Stocks To Buy For 2014: Nexen Inc.(NXY)
Nexen Inc. operates as an independent energy company worldwide. The company?s Conventional Oil and Gas segment explores for, develops, and produces crude oil and natural gas from conventional sources. This segment operates in the United Kingdom, Canada and the United States, and offshore West Africa, Colombia, and Yemen. Nexen?s Oil Sands segment develops and produces synthetic crude oil from the Athabasca oil sands in northern Alberta. The company?s Shale Gas segment explores for and produces unconventional gas from shale formations in northeastern British Columbia. Nexen Inc. was founded in 1971 and is headquartered in Calgary, Canada.
Hot Canadian Stocks To Buy For 2014: Natural Gas(NG)
NovaGold Resources Inc., through its subsidiaries, engages in the exploration and development of mineral properties primarily in North America. The company primarily explores for gold, silver, copper, zinc, and lead ores. It holds interests in the Donlin Creek property covering 81,361 acres and the Ambler property comprising 90,614 acres located in Alaska; and the Galore Creek property comprising 293,838 acres located in northwestern British Columbia, Canada. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was founded in 1984 and is based in Vancouver, Canada.
Advisors' Opinion:- [By Vodicka]
Novagold Resources Inc New Ord (AMEX:NG): This equity had 11,424,918 shares sold short as of Aug 31st, as compared to 11,493,664 on Aug 15th, which represents a change of -68,746 shares, or -0.6%. Days to cover for this company is 4 and average daily trading volume is 2,735,045. About the equity: NovaGold Resources Inc. is a mineral exploration company. The Company, through its subsidiaries, explores and develops mineral properties in North America. NovaGold primarily focuses on gold properties, which may include copper, silver and zinc resources.
Hot Tech Stocks To Watch For 2014: Research in Motion Limited(RIMM)
Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, and Internet and Intranet-based applications and browsing. Its products and services principally comprise the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, the BlackBerry Torch, BlackBerry Curve series, the BlackBerry Style, BlackBerry Storm series, the BlackBerry Tour, BlackBerry Pearl series, and the BlackBerry PlayBook tablet. T he company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express, BlackBerry mobile voice system, and hosted BlackBerry services. Its technology also enables third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data, and third-party support programs. In addition, the company offers BlackBerry technical support services, non-warranty repairs, and nonrecurring engineering services. Further, it provides BlackBerry App World that offers BlackBerry smartphone users an electronic catalogue that aids in the discovery and download/purchase of applications directly from their BlackBerry smartphone. The company markets and sells its BlackBerry wireless solutions primarily through global wireless communications carriers, and third party distribution channels. Research In Motion Limited was founded in 1984 and is headquartered in Waterloo, Canad a.
Advisors' Opinion:- [By Kevin M. O'Brien]
Research In Motion (RIMM) will go private. The stock, rightfully so, has been completely crushed in 2011. The negative sentiment surrounding this company makes it hard to envision the stock price recovering anytime soon. Their two-CEO structure has been a major problem. Concerns with Research In Motion are plentiful. This was once a great and innovative company. It actually makes sense to take it private sooner rather than later as the stock price looks to be headed to the single digits unless a buyout could happen, which I do not see taking place.
- [By Fitz Gerald]
Rumors that the BlackBerry maker hired an investment banker to assist in weighing strategic options spurred heavy trading traffic in the weeklies this morning. Shares in RIMM are up 4.15% at $21.35 as of 12:05 pm on the East Coast, after earlier rallying as much as 9.7% to $22.49. Options on Research In Motion are some of the most active today, with volume on the stock approaching 110,000 contracts in early-afternoon trade. Investors are favoring calls, exchanging nearly 2 call options for each single put in play thus far in the session. Fresh prints in weekly calls suggest some strategists are positioning for shares in RIMM to extend gains through the end of this week. Volume in the weeklies is heaviest at the Oct. '07 $22 strike, where more than 8,600 contracts changed hands against previously existing open interest of 2,399 positions. Traders appear to have purchased the majority of the contracts for an average premium of $0.59 each. Call buyers profit if RIMM's shares rally another 5.8% to exceed the average breakeven price of $22.59 at expiration. Buyers outnumbered sellers driving substantial volume in calls at the Oct '07 $24 and $25 strikes, as well. Continued speculation surrounding the beleaguered BlackBerry maker could be just what call buyers need to see the value of their call options appreciate in the next few days. Increases in options implied volatility on the stock, which currently trades 2.38% higher on the day at 81.0%, may also benefit long option holders.
- [By Chuck Carlson]
RBC Capital’s Mike Abramsky today reiterates a Sector Perform rating on Research in Motion (RIMM) shares, writing that the company’s fiscal Q2 results for the three months that ended in August likely beat the consensus $4.47 billion revenue estimate and 87 cents EPS estimate, coming in more like $4.5 billion and 90 cents.
He also thinks Q3′s forecast will beat the consensus $5.3 billion and $1.36, helped by the introduction last month of new BlackBerry models based on “OS 7.”? The devices are succeeding in luring upgrade buyers from existing BlackBerrys, he writes, with his “checks” of 90 different outlets for Verizon Communications (VZ), AT&T (T), Sprint-Nextel (S), and T-Mobile USA showing a 20% sell-out rate across the various models.
Despite that positive data point, Abramsky believes there’s still risk to RIM’s turnaround.
“With BB7 uptake in line with our base case scenario QNX handsets may remain pivotal to reversing NA share declines,” he writes, with RIM perhaps having 12% share of North American smartphone shipments at present, down from 15% last quarter, and below Google’s (GOOG) 60% share by platform and Apple’s 25% share.
“To be more constructive on the shares, we look for signs of North American share recovery, better execution, improved visibility to QNX Smartphones and related innovations (LTE, multi-device BES, Android emulation), or value-creating initiatives.”
RIM shares today are down 44 cents, or 1.4%, at $31.05.
Hot Canadian Stocks To Buy For 2014: TotalFinaElf S.A.(TOT)
TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.
Advisors' Opinion:- [By Glenn]
TOT has a market capitalization of $130 billion. Its dividend yield last year of 5% is among the best in the industry. Current P/E ratio of 9.2 seems very attractive compared to the industry average of 12. The stock prices did not participate much in the recent bull market. While smaller sized competitors such as ConocoPhillips (COP), Marathon Oil Corporation (MRO) and Statoil ASA (STO) offered spectacular returns (ranging from 30% to 50%), Total’s return in 2010 was only 2%. One may find that the price will catch up with profits.
- [By Dave Friedman]
Institutional investors bought 15,892,820 shares and sold 13,997,360 shares, for a net of 1,895,460 shares. This net represents 0.08% of common shares outstanding. The number of shares outstanding is 2,234,829,040. The shares recently traded at $46.80 and the company’s market capitalization is $109,165,864,774.97. About the company: Total SA explores for, produces, refines, transports, and markets oil and natural gas. The Company also operates a chemical division which produces polypropylene, polyethylene, polystyrene, rubber, paint, ink, adhesives, and resins. Total operates gasoline filling stations in Europe, the United States, and Africa.
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