With the Dow Jones Industrials (DJINDICES: ^DJI ) at a new record high, cautious investors are starting to pay attention to valuation more closely than ever on the stocks that interest them. Yet whenever you use simple measures to try to assess whether a stock is cheap or expensive, you need to understand that your conclusions are only as strong as the accuracy of the data. If you rely on numbers that might not be correct, then you could make mistakes in your evaluation of a stock's true value.
Book value is a great example of how financial numbers can be misleading. Let's look at the four cheapest stocks in the Dow in terms of price-to-book ratios and try to assess whether those stocks are actually good values at their current prices.
A valuation that's lighter than aluminum
Among Dow stocks, Alcoa (NYSE: AA ) has the cheapest valuation based on price-to-book ratio, with shares fetching just 68% of book value. The aluminum industry overall is in terrible condition, and so peers such as Chinalco also trade at similar levels compared to book value. For its part, Alcoa has had to shutter some of its production facilities recently, strongly suggesting that its plant and equipment items on its balance sheet aren't necessarily producing as much profit as their book value would suggest.
Top 5 China Stocks To Own Right Now: Response Genetics Inc.(RGDX)
Response Genetics, Inc., a life sciences company, engages in the research, development, marketing, and sale of clinical diagnostic tests and pharmacogenomic tests for use in the treatment of cancer primarily in the United States, Asia, and Europe. The company develops genetic tests that measure predictive factors for tumor response in tumor tissue samples. It offers tests for non-small cell lung cancer under the ResponseDX: Lung trade name; colorectal cancer under the ResponseDX: Colon trade name; and gastric and gastroesophageal cancer under the ResponseDX: Gastric trade name. The company also develops tests for other types of cancer that identify genetic profiles of tumors that recur after surgery. Response Genetics, Inc. offers its products through its sales force to community based oncologists, hospitals, and physician offices. In addition, it provides pharmacogenomic testing services to pharmaceutical companies. The company was formerly known as Bio Type, Inc. and cha nged its name to Response Genetics, Inc. in August 2000. Response Genetics, Inc. was founded in 1999 and is headquartered in Los Angeles, California.
Advisors' Opinion:- [By Monica Gerson]
Response Genetics (NASDAQ: RGDX) slipped 9.47% to $1.34 after the company reported Q4 results. The company posted a quarterly net loss of $3.2 million, or $0.09 per share, versus a year-ago net loss of $0.5 million, or $0.01 per share.
Top Cheapest Stocks For 2014: Players Network (PNTV)
Players Network (PNTV), incorporated on March 16, 1993, is a global media and entertainment company engaged in the development of Digital Networks. The Company distributes broadband video and other social media content over a range of Internet enabled devices and cable television channels. The Company�� platform is designed to deliver video content and develop digital social communities, including Vegas On Demand TV. The Company operates a video on demand (VOD) television channel, also named Vegas On Demand, which consists of original programming that is distributed over its own VOD channels to approximately 24,000,000 homes over the Internet with distribution partners, which include, Comcast, Hulu, Blinkx, Google, and YouTube Video, for DVD home video, and various mobile platforms. Vegas On Demand TV offers its audience the ability to connect to Vegas Insiders through programming, which captures sex appeal, entertainment, and the non-stop adrenaline rush of the Las Vegas gaming lifestyle. Players Network�� content goes beyond poker, casino action, sports betting, and racing, to lifestyle programs about entertainment and fine living.
PNTV�� Media Network operates across all distribution platforms from television screens to mobile devices, gaming consoles, computers and tablets. The Company�� platform has two main membership categories: the Consumer/User who visits its digital communities and partakes in viewing ad-supported and pay-per-view premium videos, purchases products and connects with Insiders, who are its Premium Members. Players Network�� Programming Brands include Vegas On Demand focuses on Gaming lifestyle and produces programming about Horse Racing, Sports Betting, Casino Games and Poker; Vegas On Demand, which is about Las Vegas lifestyle and covers celebrity, night clubs, poolside experiences and entertainment, and Sexy Sin City TV covers the adult and sexy side of Las Vegas after dark. The Company�� productions include gaming instruction, gaming news, instruct! ion on sports and racing wagering, gaming entertainment, tournaments, events and travel. The Company has a library of 1,550 gambling and gaming lifestyle videos, including several series of both long and short form content. Some of these series include Players Network originals; Hidden Vegas, Tattoo Tails, which include 30 originally produced hours of programming from the World Series of Poker, which Players Network had the rights to produce and air live. Players Network produced over 50 videos at the Hooters Hotel and Casino, 28 new gaming instructional videos aimed at slots and video poker players, a series of 23 videos on magic entitled Hocus Pocus, The Best of Vegas series and Neon Buzz, an entertainment report which covered red carpet events.
The Company competes with ESPN, the Travel Channel, E! and the Food Network.
Advisors' Opinion:- [By Peter Graham]
Small cap entertainment or gaming stocks Soul and Vibe Interactive Inc (OTCBB: SOUL), Elray Resources Inc (OTCMKTS: ELRA) and Players Network (OTCMKTS: PNTV) focus on entertaining consumers. However, its important to remember that consumers can be very fickle when it comes to entertainment or games. So should you be entertaining any of these small caps? Here is a closer look and a reality check:
Top Cheapest Stocks For 2014: American Strategic Income Portfolio Inc (ASP)
American Strategic Income Portfolio Inc. (the Fund) is a diversified closed-end management investment company. The Fund's primary investment objective is to provide a high level of current income. Its secondary investment objective is capital appreciation. The Fund invests in mortgage-related assets that directly or indirectly represent a participation in or are secured by and payable from mortgage loans. American Strategic Income Portfolio Inc. may also invest in the United States Government securities, corporate debt securities, preferred stock issued by real estate investment trusts and mortgage servicing rights.
The Fund's portfolio includes the United States Government Agency mortgage-backed securities, commercial loans, multi-family loans, preferred stocks, corporate notes, short-term securities and single-family loans. The Fund's investment advisor is FAF Advisors, Inc., a subsidiary of U.S. Bank National Association.
Advisors' Opinion:- [By jaggom]
However, the good news for the investors is that this trend of strong prices is set to continue and the company is expected to yield better financial and operating results with surging demand for these products in the market. For example, a 16% jump in the average selling prices (ASP) of DRAM along with a 6% jump in volume propelled revenue from the segment 23% higher, while an 8% increase in NAND flash prices led to a 7% jump in revenue from this segment.
- [By ICRAOnline]
Unit volumes grew 5.3% to 63.1 million, which was offset by 6.7% decline in average selling price (ASP). Due to higher volumes, the company�� HDD market share grew to 45.7% from 44.9% in the year-ago quarter.
- [By Nicolas73]
We can go through a long list of complicated reasoning, but the reason is very simple: Seagate increased its gross margin by around 50% (31.6% vs. 19.5%). This was accomplished thanks to the increased average selling price (ASP) of the hard disk drives.
Top Cheapest Stocks For 2014: Huntington Bancshares Incorporated(HBAN)
Huntington Bancshares Incorporated operates as the holding company for The Huntington National Bank that provides commercial, small business, and consumer banking services. The company?s Retail and Business Banking segment offers various financial products and services, including checking, savings, and money market accounts, certificates of deposit, consumer loans, and small business loans and leases; and investments, insurance, interest rate risk protection, foreign exchange hedging, and treasury management services to consumer and small business customers. Its Regional and Commercial Banking segment provides commercial lending; depository and liquidity management products; treasury management solutions; equipment and technology leasing; international services; and capital markets services, such as interest rate risk protection, foreign exchange hedging and sales, trading of securities, mezzanine investment capabilities, and employee benefit programs to government, not-f or-profit, health-care, and publicly traded entities. The company?s Automobile Finance and Commercial Real Estate segment offers financing for the purchase of automobiles, and new and used vehicle inventory by automotive dealerships; and financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers. Its Wealth Advisors, Government Finance, and Home Lending segment provides investment management; investment servicing; custody, and corporate trust and retirement plan services; and administrative and operational support to fund to high net worth customers. It also offers online, mobile, and telephone banking services; and operates approximately 1,300 automated teller machines. As of December 31, 2011, the company had 652 branches located in Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.
Advisors' Opinion:- [By Tim Melvin]
We are starting to see bank merger activity accelerate as banks like Huntington Bancorp (HBAN) and� First Merchants (FRME) looking to expand and growth their asset base in the aftermath of the credit crisis. Banks with below-average capital and returns could quickly become buyout targets.
- [By Amanda Alix]
Mortgages down, but commercial loans are up
Like its peer Huntington Bancshares� (NASDAQ: HBAN ) , New York Community saw a slowdown in residential mortgage refinancing�activity due to higher interest rates. But, like Huntington and KeyCorp (NYSE: KEY ) , the bank was able to improve in other areas. New York Community enjoyed higher mortgage servicing income�in the second quarter, for example -- an area in which KeyCorp is also expanding, having recently acquired $110 billion in commercial loan servicing rights�from Bank of America (NYSE: BAC ) earlier this year. - [By Tim Melvin]
The year ahead should be a great one for the smaller bank stocks. Larger regionals like Huntington Bancorp (HBAN) and Capital Ban Financial (CBF) have made it clear they intend to grow by acquisition in the years ahead. Banks like First Merit (FMER) and First Merchants (FRME) have done deals in the past year and are open to doing more to increase their market share and footprints. This should be the year the floodgates open and we see the first wave of merger activity in small banks.
Top Cheapest Stocks For 2014: Atlantic Power Corp (AT)
Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation and infrastructure assets in the United States and Canada. The Company�� power generation projects sell electricity to utilities and industrial customers under long-term power purchase agreements. During the year ended December 31, 2011, its power generation projects in operation had an aggregate gross electric generation capacity of approximately 3,397 megawatts in which its ownership interest was approximately 2,140 megawatts. The Company operates in five segments: Northeast, Southeast, Northwest, Southwest and Un-allocated Corporate. As of December 31, 2011, its portfolio consisted of interests in 31 operational power generation projects across 11 states in the United States and two provinces in Canada, and a 53 megawatts biomass project under construction in Georgia and a 500-kilovolt 84-mile electric transmission line. On December 31, 2012, the Company acquired Ridgeline Energy Holdings, Inc. Advisors' Opinion:- [By Justin Loiseau]
Atlantic Power (NYSE: AT ) shares have sunk 60% in 2013, leaving many investors wondering whether the utility's earnings will ever float back. With Q1 earnings scheduled for Thursday morning, investors need to know the answer to a very important question: Is Atlantic Power stock undervalued? I examined the utility's fundamentals and valuation in previous articles ��now let's see how if Atlantic's business model and strategy can set it up for success.
- [By Justin Loiseau]
Atlantic Power (NYSE: AT ) isn't going to win any economies-of-scale awards, but the utility is determined to ramp up investments in renewables over the next few years. In 2012, Atlantic added three wind farms with 150 net MW to its assets via a subsidiary acquisition from Veolia Environnement.
- [By Justin Loiseau]
Atlantic Power
Atlantic Power (NYSE: AT ) reported earnings on May 8, beating sales estimates and pulling in positive earnings for the first time since Q2 2011. - [By Justin Loiseau]
The company isn't immune from natural gas price spikes, but its diversity will help offset any gas losses with gains from its nuclear, coal, and renewable assets. Some other utilities might not fare as well. While Duke relies on natural gas and oil for 37% of its capacity, Atlantic Power (NYSE: AT ) has dug into its gas gamble with 58% capacity and plans to invest more in the coming quarters.
Top Cheapest Stocks For 2014: Yoc AG (YOC)
Yoc AG is a German provider of mobile marketing and e-mail marketing service. It operates through two main segments: Mobile Technology and Media. The Mobile Technology segment encompasses the product areas Mobile Marketing and Mobile Internet, as well as the unit Mobile Business-to-Consumer (B2C). It also includes the licensing and implementation of technological products for target-oriented communication via mobile end devices. The Media segment covers the marketing of mobile websites and applications on Cost-per-thousand-impressions (CPM), media penetration and performance basis. The Company serves clients from the consumer goods, automobile, trading and service industries. The Company offers its clients advertising campaigns that integrate mobile phones and the Internet into classic advertising. As of December 31, 2011, it operated through 11 subsidiaries located in Germany, the United Kingdom, Belgium, Austria and France. Advisors' Opinion:- [By Sofia Horta e Costa]
ThyssenKrupp AG (TKA), Germany�� largest steelmaker, rose to a five-week high. YOC AG (YOC) surged the most in more than three months after the mobile-phone advertising company said it sold 1.3 million euros ($1.7 million) of shares to increase capital. Lanxess AG (LXS), the chemical maker that joined the DAX in September, retreated 3.4 percent.
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