Barron's Digest July 3, 2006 Issue
Stocks: (NEW)(SI)(GE)(LPL)(BAY)(ACV)(C)(BAC)(HBC)(WFC)(WB)(EMC)(RSAS)
Barron's writes that Newmont Mining has been hurt by the gold's price, but the $23 billion market cap company is doing well. It has prime properties, good management, and a solid balance sheet. While gold itself is up 14% this year, Newmont's stock is down 2%. This may be an investing opportunity. In the past, one of the issues investors have had with the company is rising costs. But, the management insists that this has leveled off. The company also owns valuable stakes in companies like Canadian Oil Sands.
Barron's writes that Siemen's purchase of Bayer's medical unit may have been a smart deal. The company has the chance to combine this with its diagnostics products business to build revene and compete with GE and Philips. With moves into this kind of business Siemens may be viewed less as a conglomerate, which tends to carry a discount in the stock market.
Alberto-Culver is spinning off its 3,200 beauty supply stores. The stock now trades at an 11% discount to the personal-products industry. Many analysts think that the value of Alberto-Culver and the stock spin-off is greater than where the stock trades now.
Barron's also reports that Citigroup has not performed as well as its peers. Over the last five years, the stock is down 1%. Bank of America is up 62% for the same period. Wachovia is up 56%. Wells Fargo is up 46% and HSBC is up 47%. Citi is doing well in several areas. Its overseas consumer bank business grew 8% in the first quarter and profits from that operation were up 21%. International corporate and investment banking revenue rose 23% for the period and profits rose 80%. Citi's CEO has said that his goal is to have mid-to-high single digit "organic growth" and sees "organic revenue growth" rising faster. Citi also has a 4% yield now. If the market begins to catch on to Citi's success, the stock could from its current price around 49 to above $60.
Barron;'s writes that EMC's purchase of RSA Security could pay off because network security has become important for corporate clients. However, this move will put the company in direct competition with Network Appliance, Hewlett-Packard and IBM, which has been pushing the EMC stock lower.
Douglas A. McIntyre
Barron's writes that Newmont Mining has been hurt by the gold's price, but the $23 billion market cap company is doing well. It has prime properties, good management, and a solid balance sheet. While gold itself is up 14% this year, Newmont's stock is down 2%. This may be an investing opportunity. In the past, one of the issues investors have had with the company is rising costs. But, the management insists that this has leveled off. The company also owns valuable stakes in companies like Canadian Oil Sands.
Barron's writes that Siemen's purchase of Bayer's medical unit may have been a smart deal. The company has the chance to combine this with its diagnostics products business to build revene and compete with GE and Philips. With moves into this kind of business Siemens may be viewed less as a conglomerate, which tends to carry a discount in the stock market.
Alberto-Culver is spinning off its 3,200 beauty supply stores. The stock now trades at an 11% discount to the personal-products industry. Many analysts think that the value of Alberto-Culver and the stock spin-off is greater than where the stock trades now.
Barron's also reports that Citigroup has not performed as well as its peers. Over the last five years, the stock is down 1%. Bank of America is up 62% for the same period. Wachovia is up 56%. Wells Fargo is up 46% and HSBC is up 47%. Citi is doing well in several areas. Its overseas consumer bank business grew 8% in the first quarter and profits from that operation were up 21%. International corporate and investment banking revenue rose 23% for the period and profits rose 80%. Citi's CEO has said that his goal is to have mid-to-high single digit "organic growth" and sees "organic revenue growth" rising faster. Citi also has a 4% yield now. If the market begins to catch on to Citi's success, the stock could from its current price around 49 to above $60.
Barron;'s writes that EMC's purchase of RSA Security could pay off because network security has become important for corporate clients. However, this move will put the company in direct competition with Network Appliance, Hewlett-Packard and IBM, which has been pushing the EMC stock lower.
Douglas A. McIntyre
posted by douglas mcintyre at 3:22 PM
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