Reed Hastings wants Netflix (NASDAQ: NFLX ) investing in more original series. And why not? House of Cards is already a success, and early signs point to a similarly strong showing for the horror series Hemlock Grove.
Trouble is, this sort of content doesn't come cheap. In a manifesto posted to Netflix's investor-relations site recently, Hastings confessed that original program development is "cash-intensive" and that producing more shows is likely to mean raising money from investors or partners:
As we expand Originals, they will consume cash. Since we are otherwise using domestic profits to fund international markets, we will raise capital as needed to fund the growth of Originals.
And that, Fool, is where Apple (NASDAQ: AAPL ) comes in. The Mac maker should be investing in Netflix original programming.
Source: Netflix.
Top 10 Consumer Companies To Own In Right Now: The Travelers Companies Inc.(TRV)
The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.
Advisors' Opinion:- [By Monica Gerson]
The Travelers Companies (NYSE: TRV) is projected to report its Q3 earnings at $2.07 per share on revenue of $5.74 billion.
Sigma-Aldrich (NASDAQ: SIAL) is expected to report its Q3 earnings at $0.99 per share on revenue of $661.29 million.
- [By John Maxfield]
On the individual stock front, shares of Travelers Companies (NYSE: TRV ) are leading the Dow higher this afternoon, up by 2.3% at the time of writing. Given that it's an insurance company, the fact that the jobs report wasn't outright awful probably has a lot to do with Travelers' ascent today. The better the economy is doing, the sooner long-term interest rates will increase. And the sooner long-term rates increase, the sooner Travelers' bottom line will pick up to full steam.
- [By Dan Dzombak]
On the other side of earnings, Travelers (NYSE: TRV ) is today's worst Dow stock, down 3.4% after reporting better-than-expected earnings but disappointing future pricing guidance. The company reported EPS of $2.41, far better than analyst expectations of $1.64 per share, while revenue of $6.39 billion was well ahead of analysts' expectations of $6 billion. Despite all the good news, in the conference call the company indicated that its increased prices, while contributing to the great results, were leading to a drop in volume. This suggests that Travelers' recent outperformance is unsustainable and the company will have to lower its prices to remain competitive.
- [By Alex Planes]
The Dow Jones Industrial Average (DJINDICES: ^DJI ) closed over 9,000 points for the first time in its history on April 6, 1998. The 9,033.23 close was reached largely on news of a merger between Citicorp -- now Citigroup (NYSE: C ) -- and Dow component Travelers (NYSE: TRV ) , the largest corporate tie-up in history to that time, defying the weakness in other, broader indexes. Travelers soared 21% on news of the deal, and non-component Citi rose 16%. The divergence between the Dow and other indexes prompted Charles Pradilla of Cowen to tell The New York Times that "this market is probably a little ahead of itself."
Top Cheap Companies To Own For 2014: Advance Auto Parts Inc(AAP)
Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.
Advisors' Opinion:- [By John Udovich]
Auto parts retailers like large cap O'Reilly Automotive Inc (NASDAQ: ORLY) and mid cap Advance Auto Parts, Inc (NYSE: AAP)�along with small cap auto parts stock Federal-Mogul Corp (NASDAQ: FDML) have been a bright spot on the economy as consumers try to stretch the lives of their automobiles or vehicles in the bad or uncertain economy. In fact, Investors Business Daily has recently noted that the�average age of cars on the road is about 11.5 years and that�� of course good news for auto parts retailers while�any uptick in sales or production of auto parts in general�will be good for companies like Federal-Mogul Corp. With that in mind, here�is a look at�how these three auto parts retailers or auto parts stocks are taking investors for a ride in a good way:
- [By Ben Levisohn]
Heading into last night’s earnings report, O’Reilly had returned 50% this year including reinvested dividends, easily besting peers Autozone (AZO), which had returned 22%, Genuine Parts (GPC), which has returned 26%, and Advance Auto Parts (AAP), which had returned 38%,� thanks in large part to a 25% gain in the last month due to its purchase of General Parts International. Clearly, investors thought O’Reilly had something going for it its competitors did not.
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Wednesday’s session are Mattel Inc.(MAT), Stanley Black & Decker Inc.(SWK) and Advance Auto Parts Inc.(AAP)
- [By Ben Levisohn]
Autozone has dropped 0.3% to $413.22 �, while�Pep Boys (PBY) has gained 0.2% to $12.19 , Advanced Auto Parts�(AAP) has risen 0.3% to $80.35, and O’Reilly Automotive (ORLY) has advanced 0.3% to $124.42 .
Top Cheap Companies To Own For 2014: S&P GSCI(GD)
General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:
- [By Chad Tracy]
Let's take a look at three stocks in the aerospace and defense sector that look more attractive at today's prices.
General Dynamics (NYSE: GD) General Dynamics is currently trading around $86 per share, which is close to its 52-week high of $87.85. Yet earnings support this valuation, and the company's forward price-to-earnings (P/E) ratio is only 11, compared with an industry average of 18. The current price to book value is 2.5. The company also carries very little debt, with a debt-to-equity ratio of 0.3.General Dynamics generates huge revenue through its contracts with the U.S. government. Its marine systems division owns three of the six submarine shipyards in the U.S. Long-term contracts with the U.S. government are estimated to be worth $78 billion for attack submarines and $140 billion for ballistic missile submarines.
Top Cheap Companies To Own For 2014: Lionbridge Technologies Inc.(LIOX)
Lionbridge Technologies, Inc. provides language, development, and testing services. Its Global Language and Content segment provides product localization services, such as creating foreign language versions of its clients? products and software applications, including the user interface, online help systems, and documentation; and content translation services, such as translating and maintaining clients? Web-based content, eLearning courseware and training materials, technical support, and sales and marketing information. It also offers technical authoring, eLearning courseware development, and production and integration of content; and global language and content services delivery. The company?s Global Development and Testing segment develops and maintains on-premise, SaaS, and smart phone and tablet applications, as well as provides Web production services. This segment also offers various testing services under the VeriTest brand, including managed test teams, test proc ess design, test automation, functional testing, performance testing, globalization testing, and product certification. In addition, it provides specialized search relevance, online content editorial, keyword optimization, and related services. Its Interpretation segment offers interpretation services for government business and healthcare organizations that require experienced linguists to facilitate communication. It provides interpretation communication services, such as onsite interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services in approximately 360 languages and dialects. The company serves the technology, mobile and telecommunications, Internet and media, life sciences, government, manufacturing, automotive, retail, and aerospace sectors in the Americas, Europe, and Asia. Lionbridge Technologies, Inc. was founded in 1996 and is headquartered in Waltham, Massachusetts.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Lionbridge Technologies (Nasdaq: LIOX ) , whose recent revenue and earnings are plotted below. - [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Lionbridge Technologies (Nasdaq: LIOX ) , whose recent revenue and earnings are plotted below. - [By Jeff Reeves]
Lionbridge (LIOX) is the kind of cheap, small-cap stock that investors love. This player has soared 60% in the last three months thanks to nice earnings and improving investor sentiment.
Top Cheap Companies To Own For 2014: USG Corporation(USG)
USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.
Advisors' Opinion:- [By Seth Jayson]
USG (NYSE: USG ) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share. - [By Eric Volkman]
She also serves as chairman of the United States Steel and Carnegie Pension Fund, and on that organization's investment committee. Outside of U.S. Steel, she sits on the board of directors of USG (NYSE: USG ) and the Pennsylvania Business Council, among other entities.
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