The ultra-luxury market has been a strong performer in recent years. As companies such as Michael Kors (NYSE: KORS ) and Coach have expanded their product lines and focused on Asian operations, the stocks have attracted a plethora of investors, with the former up more than 130% in two years. One segment that tends to be neglected among analysts, though, is the art world. There are two major players in big art auctions -- Sotheby's (NYSE: BID ) and Christie's. Let's look at the publicly traded option to see how it compares with other luxury stocks.
Soft art
Investors seemingly haven't been too interested in the big auction houses since the financial crisis because the art market has been relatively weak. Whether the market is coming back or not is up for debate, with some analysts saying we are at a natural turnaround point, while others forecast remaining tepidity. I am inclined to agree with the former, as the economy picks up overall and ultra-high-net-worth individuals increase their big spending. Additionally, the rapid ascent of wealthy Chinese will continue to spur the art market in the next several years.
Hot Chemical Companies To Own In Right Now: NET Servicos de Comunicacao S.A.(NETC)
Net Servicos de Comunicacao S.A., through its subsidiaries, provides cable television, Internet access, and voice services in Brazil. It offers cable television services under the ?NET? brand name through various cable networks located in the largest cities of Brazil. The company also offers broadband Internet access services under the ?NET VIRTUA? brand name by using Embratel's IP backbone infrastructure. In addition, it provides voice services under the ?NET FONE VIA EMBRATEL? brand name jointly with Embratel. Further, the company offers integrated video, broadband, and voice services. Net Servicos de Comunicacao S.A. was founded in 1994 and is headquartered in Sao Paulo, Brazil.
Advisors' Opinion:- [By Vanina Egea] offers bundled services and has aggressively expanded its Internet and TV subscriber base in the state.
Investing for Long-term Growth
Looking forward, Telef贸nica Brasil is investing in technology and network expansion to further empower its competitive position. The firm is expanding its 3G network based on CDMA EV-DO and HSPA technologies, which provide a great advantage over its peers. Further, it expects to benefit from the growth opportunities in the 4G market. Consequently, it has signed a deal with Ceragon Networks Ltd. (CRNT) to deploy the superfast 4G network nationwide.
A Valuable Stock
Telef贸nica Brasil has a healthy balance sheet with strong cash flow generation (up to 9,576 million in 2013 from 3,488 million in 2011) and reasonable debt levels. Its net debt-to-EBITDA ratio is of 0.17 times and it has a debt- to-equity ratio of 0.2 against its peers��average of 0.9. Its financial strength and a robust dividend have attracted investment gurus like Charles Brandes (Trades, Portfolio) and David Dreman (Trades, Portfolio), who have recently incorporated the company to its portfolio.
Considering the stock�� trading price of 14.6x its trailing earnings compared to the peer group average of 16.90x, and a compelling dividend yield of 7.30 with a payout ratio of 1.1 (against its competitors��median of 3.53 and 0.62, respectively), I believe this stock is a worthy investment opportunity with excellent growth potential.
Disclosure: Vanina Egea holds no position in any stocks mentioned.
Also check out: Charles Brandes Undervalued Stocks Charles Brandes Top Growth Companies Charles Brandes High Yield stocks, and Stocks that Charles Brandes keeps buyingAbout the author:Vanina EgeaA fundamental analyst at Lone Tree AnalyticsVisit Vanina Egea's Website
Currently 5.00/512345Rating: 5.0/5 (1 vote)
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Hot Asian Stocks To Watch Right Now: USA Compression Partners LP (USAC)
USA Compression Partners, LP, incorporated on June 07, 2011, through its wholly owned subsidiary USA Compression Partners, LLC (Operating Subsidiary) and Operating Subsidiary�� wholly owned subsidiary USAC Leasing LLC, primarily provides natural gas compression services under term contracts with customers in the oil and gas industry, using natural gas compressor packages that it designs, engineers, operates and maintains. As of September 30, 2013, the Company had approximately 1,162,353 of fleet horsepower.
The Company provides compression services for a monthly service fee. As part of its services, the Company engineers, designs, operates service and repair its fleet of compression units and maintain related support inventory and equipment. The fleet of compression units that it owns and uses to provide compression services consists of engineered compression units that utilize standardized components, principally engines manufactured by Caterpillar, Inc. and compressor frames and cylinders manufactured by Ariel Corporation.
Advisors' Opinion:- [By Jake L'Ecuyer]
USA Compression Partners LP (NYSE: USAC) shares tumbled 6.80 percent to $24.95 after the company priced 6.6 million units at $25.59 per unit.
Take-Two Interactive Software (NASDAQ: TTWO) was down, falling 3.32 percent to $19.95 after the company issued a weak outlook. For the first quarter, the company expected an adjusted loss of $0.35 to $0.25 per share on revenue of $120 million to $125 million. However, analysts expected a loss of $0.12 per share on revenue of $209.6 million.
- [By Traders Reserve]
For USA Compression Partners (USAC), it is all in the name ��the company provides natural gas compression services to the extraction industry.
This is a volume-dependent business and volume is booming. USA Compression Partners��revenue was up 20% in 2012 and will be up that much or more when final numbers from 2014 come in. Third=quarter results were terrific: revenue was up almost 24% year over year and adjusted cash flow, the basis of the dividend, was up more than 29% year over year. The yield is currently 6.7% and will probably go higher. Ignore the P/E. This is a growth and dividend story. Take a look.
- [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut. CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M - [By Robert Rapier]
USA Compression Partners (NYSE: USAC) was the first MLP IPO of 2013, debuting on Jan. 15, and advancing 36 percent since. USAC is unique in the MLP space in providing compression services for the oil and gas industry. The way this works is that a natural gas producer, for example, will contract with USAC on a long-term fixed-fee basis to compress the natural gas so that it can be delivered via pipeline to customers. USAC installs compression equipment to move the gas from the well to its destination. Its customer base is scattered across the important natural gas-bearing shales like the Barnett and the Marcellus. At the current price, units yield 7.3 percent. Coverage for the second quarter distribution was 90 percent[1] , but the partnership expects full year DCF coverage of 110 percent.
Hot Asian Stocks To Watch Right Now: Internet Gold Golden Lines Ltd.(IGLD)
Internet Gold ? Golden Lines Ltd., together with its subsidiaries, provides communications services in Israel. The company offers a range of telecommunication operations and services, including domestic fixed-line, cellular and international communication services, multi-channel television, satellite broadcasts, Internet services, customer call centers, maintenance and development of communications infrastructures, provision of communications services to other communications providers, television and radio broadcasts, and supply and maintenance of equipment on customer premises. It also provides data services, server and Web site hosting services, technical maintenance and support services, networking and system services, outsourcing and out-tasking services, security and risk management solutions, and IP based services; media services, which include the sale of advertising on its Web sites; and sale of products and services on the Internet. The company was formerly known as Euronet Golden Lines (1992) Ltd. and changed its name to Internet Gold ? Golden Lines Ltd. in June 1999. The company was founded in 1992 and is headquartered in Ramat Gan, Israel. Internet Gold ? Golden Lines Ltd. is a subsidiary of Eurocom Communications Ltd.
Advisors' Opinion:- [By Garrett Cook]
On Wednesday, the telecommunications services sector proved to be a source of strength for the market. Leading the sector was strength from Internet Gold Golden Lines (NASDAQ: IGLD) and NQ Mobile (NYSE: NQ).
- [By Garrett Cook]
On Wednesday, the telecommunications services sector proved to be a source of strength for the market. Leading the sector was strength from Internet Gold Golden Lines (NASDAQ: IGLD) and NQ Mobile (NYSE: NQ).
Hot Asian Stocks To Watch Right Now: Amkor Technology Inc.(AMKR)
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. It offers package formats and services using wirebonding and flip chip interconnect technologies that connect the die to the package carrier. The company?s package carriers include leadframe packages that utilize metal and place the electrical interconnect leads to the system board around the perimeter of the package; substrate packages, which utilize a laminate as the package carrier; and wafer-level packages. It provides chip scale packages comprising stacked chip scale packages for chipsets and memory applications; package-on-package solutions for the integration of logic and memory in a single footprint; and system-in-package modules that integrate two or more chips and passive device elements into a single package. The company also offers ball grid array packages comprising flip chip ball grid array packages that are used with silicon nodes f or small devices and other applications; and plastic ball grid array packages, which use wirebond technology. In addition, it provides other packaging services, such as wafer bumping services. Further, the company offers semiconductor testing services, including wafer testing or probe, final testing, strip testing, and end-of-line test services; and specialized logistical services, such as security certification and anti-counterfeit measures. It primarily serves the communications, consumer, computing, networking, automotive, and industrial markets. Amkor Technology, Inc. was founded in 1968 and is headquartered in Chandler, Arizona.
Advisors' Opinion:- [By Alex Planes]
What: Shares of Amkor Technology (NASDAQ: AMKR ) are up by over 10% today after beating expectations on both top and bottom lines in its first-quarter earnings report.
- [By Louis Navellier]
Amkor Technologies (AMKR) outsources semiconductor packaging and test services both in the U.S. and around the world. Amkor has 16 facilities with over 5.5 million square feet of space in seven countries right now. Analysts expected the company to have a very weak first quarter, but Amkor exceeded expectations by a wide margin.
- [By Monica Gerson]
Amkor Technology (NASDAQ: AMKR) shares gained 1.63% to touch a new 52-week high of $7.46. Amkor Technology's PEG ratio is 0.94.
Abraxas Petroleum (NASDAQ: AXAS) shares gained 2.94% to reach a new 52-week high of $4.55. Abraxas Petroleum shares have jumped 93.01% over the past 52 weeks, while the S&P 500 index has gained 17.50% in the same period.
Hot Asian Stocks To Watch Right Now: Nestle SA (NESN.VX)
Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd.
Advisors' Opinion:- [By Michael Calia]
Post Holdings Inc.(POST) agreed to acquire the PowerBar and Musashi brands from Nestle SA(NESN.VX), further expanding the cereal maker’s position in the active nutrition category.
Hot Asian Stocks To Watch Right Now: Signet Jewelers Limited(SIG)
Signet Jewelers Limited operates as a specialty jewelry retailer in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company retails jewelry, watches, and associated services. As of January 28, 2012, it operated a network of 1,318 stores in 50 states in the United States that trade nationally in malls and off-mall locations as ?Kay Jewelers?, and regionally under various mall-based brands, as well as operated as destination superstores under the ?Jared The Galleria Of Jewelry? trade name. The company also operated a network of 535 stores in the United Kingdom, including 14 stores in the Republic of Ireland and 3 in the Channel Islands under the ?H.Samuel?, ?Ernest Jones?, and ?Leslie Davis? trade names in high street locations and shopping malls. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.
Advisors' Opinion:- [By John Kell]
Signet Jewelers Ltd.(SIG) agreed to buy smaller rival Zale for about $690 million, significantly expanding the jewelry retailer’s presence in North America. Signet will offer $21 in cash for each Zale share, representing a 41% premium over Tuesday’s closing price. Zale shares jumped to $20.87 premarket and Signet climbed 12% to $88.40.
- [By Rich Duprey]
Specialty jeweler�Signet Jewelers� (NYSE: SIG ) announced yesterday its third-quarter dividend of $0.15 per share, the same rate it's paid for the past two quarters after raising the payout 25%, from $0.12 per share.
- [By Reuters]
Julio Cortez/AP NEW YORK -- Many U.S. retailers had to ramp up promotions last month as shoppers continued to watch their spending during the holiday season, hitting profits at several chains. L Brands (LB) cut its earnings forecast for the holiday quarter Thursday after reporting disappointing December sales at its Victoria Secret and La Senza chains. The company said it had to offer more deals than expected, the second month in a row it has had to do so. Family Dollar Stores (FDO) and teen retailer Zumiez (ZUMZ), which both reported sales declines for December, also slashed their profit forecasts. Even retailers that saw big sales gains, such as Kay Jewelers parent Signet Jewelers (SIG), weren't spared. "Additional discounting was necessary in a highly promotional retail environment," Signet Chief Executive Officer Mike Barnes said in a statement. A group of nine U.S. retailers in the Thomson Reuters same-store sales index are expected Thursday to report a sales rise of 1.9 percent in December at stores open at least a year, well below the 7.2 percent increase of a year earlier. Including drugstore chains Walgreen (WAG) and Rite Aid (RAD), analysts estimate the rise at 2.7 percent. Gap (GPS) will report after the markets close Thursday. Faced with reticent shoppers worried about their job prospects and modest economic growth, retailers offered more discounts during the holiday season than a year earlier. Between Nov. 3 and Jan. 4, eight retailers, including Walmart Stores (WMT), Target (T) and Macy's (M) , increased the number of circulars published by 6 percent and sent 57 percent more promotional emails, according to data prepared for Reuters by MarketTrack. Retailers also had to deal with shoppers who were less willing to go into stores: Data firm ShopperTrak this week said foot traffic had dropped 14.6 percent this holiday season. Walgreen, whose comparable sales of general merchandise rose 2.5 percent in December, said fewer shoppers had com
- [By Sara Murphy]
As part of the U.S.-Africa Leaders Summit, representatives from Intel (NASDAQ: INTC ) , Motorola Solutions (NYSE: MSI ) , Ford (NYSE: F ) (NYSE: F ) , and Signet Jewelers (NYSE: SIG ) participated in a round-table discussion on responsible minerals sourcing, hosted by the Enough Project at the Center for American Progress. Each of these companies has developed robust systems that aim to eliminate the terrible human cost associated with the minerals they need to make their products. They are working with the Enough Project, an NGO that works to provide a framework for best practices.
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