4 Broadly Diverse Companies For Your Portfolio

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 |  Includes: ETP, IBM, SLW, VVUS
by: Tactical Investor

This list is meant to serve as a starting point for investors. A lot of data has been provided so it should be relatively easy for an investor to scroll down the list and decide if the stock warrants further attention. If you find the stock appealing, you can dig deeper and see if meets with your investment criteria. Investors should not base their decision on yield alone. There are many stocks that offer extremely high yields, but their performance over the years has been anything but spectacular. In some cases the total rate of return has been negative for the past 3-5 years. One should look at the robustness of the company, the dividend growth rate, the sustainability of the dividend and finally one should take a look at the company's dividend history. Companies with stellar records will do everything possible to avoid cutting the dividend in order to maintain this record. To help the novice investor, we have put out this guide, which could prove to be useful in the selection process. Our suggested guidelines when searching for new investment ideas.

Company: Silver Wheaton (NYSE:SLW)

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Brief Overview

  1. Profit Margin = 73%
  2. Quarterly Revenue Growth = 3.4%
  3. Quarterly Earnings Growth = -4.5%
  4. Operating Cash Flow = $ 667 million
  5. Beta = 1.26
  6. Levered Free Cash Flow = 311M
  7. 5 year EPS growth rate = 46%
  8. 5 year sales growth rate 37%
  9. Sales vs 1 year ago = 72.4%
  10. Long term debt to equity = 0.02
  11. Sales vs 1 quarter ago = 3.4%

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Growth

  1. Net Income ($mil) 12/2011 = 550
  2. Net Income ($mil) 12/2010 = 290
  3. Net Income ($mil) 12/2009 = 118
  4. Net Income ($mil) 12/2008 = 18
  5. Net Income Reported Quarterly ($mil) = 147
  6. EBITDA ($mil) 12/2011 = 616
  7. EBITDA ($mil) 12/2010 = 334
  8. EBITDA ($mil) 12/2009 = 159
  9. Cash Flow ($/share) 12/2011 = 1.72
  10. Cash Flow ($/share) 12/2010 = 1
  11. Cash Flow ($/share) 12/2009 = 0.47
  12. Sales ($mil) 12/2011 = 730
  13. Sales ($mil) 12/2010 = 423
  14. Sales ($mil) 12/2009 = 239
  15. Annual EPS before NRI 12/2007 = 0.37
  16. Annual EPS before NRI 12/2002 = 0.33
  17. Annual EPS before NRI 12/2009 = 0.38
  18. Annual EPS before NRI 12/2010 = 0.83
  19. Annual EPS before NRI 12/2011 = 1.55

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Dividend history

  1. Dividend Yield = 1.2

Dividend sustainability

  1. Payout Ratio = 0.19
  2. 3. Payout Ratio 5 Year Average = 0.03

Performance

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  1. Next 3-5 Year Estimate EPS Growth rate = 22.99
  2. ROE 5 Year Average = 13.09
  3. Current Ratio = 5.03
  4. Current Ratio 5 Year Average = 2.99
  5. Quick Ratio = 5.03
  6. Cash Ratio = 5.01
  7. Retention rate = 81%

Notes

After putting in a nice base formation, it managed to break past 28.50 (former resistance turned into support) in a decisive manner. The normal course of action is for a stock to test this former zone of resistance now turned into support before breaking out again. Thus, consider waiting for a test of the 28.50-29.00 ranges before deploying new funds into this play. A weekly close above 33 could result in a test of the 38 ranges.

Company: Energy Transfer Partners (NYSE:ETP)

Brief Overview

  1. Free Cash Flow = - 1.2B
  2. 5 year sales growth rate = - 2.73%
  3. Sales vs 1 year ago = 16%
  4. Sales vs quarter 1 year ago = -23%
  5. EPS 5 year growth rate = -12%
  6. Relative Strength 52 weeks = 53
  7. PEG= 6.7
  8. Quarterly Revenue Growth = -23%
  9. Quarterly Earnings Growth = -24%
  10. Income from continuing operations = 1.19B
  11. Beta = 0.89
  12. Short Percentage of Float = 4.00%

Growth

  1. Net Income ($mil) 12/2011 = 669
  2. Net Income ($mil) 12/2010 = 617
  3. Net Income ($mil) 12/2009 = 792
  4. Net Income Reported Quarterly ($mil) = 1115
  5. EBITDA ($mil) 12/2011 = 1631
  6. EBITDA ($mil) 12/2010 = 1398
  7. EBITDA ($mil) 12/2009 = 1520
  8. Cash Flow ($/share) 12/2011 = 5.67
  9. Cash Flow ($/share) 12/2010 = 5.34
  10. Cash Flow ($/share) 12/2009 = 6.32
  11. Sales ($mil) 12/2011 = 6850
  12. Sales ($mil) 12/2010 = 5885
  13. Sales ($mil) 12/2009 = 5417
  14. Annual EPS before NRI 12/2007 = 3.31
  15. Annual EPS before NRI 12/2008 = 4.09
  16. Annual EPS before NRI 12/2009 = 2.51
  17. Annual EPS before NRI 12/2010 = 1.47
  18. Annual EPS before NRI 12/2011 = 1.48

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Dividend history

  1. Dividend Yield = 8.2
  2. Dividend Yield 5 Year Average = 7.9
  3. Dividend 5 year Growth = 1.56

Dividend sustainability

  1. Payout Ratio = 0.75
  2. Payout Ratio 5 Year Average 12/2011 = 1.68

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 12.05
  2. ROE 5 Year Average = 19.14
  3. Current Ratio = 1.10
  4. Current Ratio 5 Year Average = 1.15
  5. Quick Ratio = 0.61
  6. Interest Coverage Quarterly = 9.33
  7. Retention rate = 22%

Notes

The short-term pattern is bearish and there is a pretty good chance that this stock could test its recent lows of 41.15 set in June. Consider waiting for a retest of the 41.00-41.50 ranges before jumping in. From a long-term perspective, this is still a good play.

Company: International Business Machines (NYSE:IBM)

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Brief Overview

  1. Profit Margin = 15%
  2. Quarterly Revenue Growth = -3%
  3. Quarterly Earnings Growth = 5.9%
  4. Beta = 0.59
  5. Levered Free Cash Flow = 12.3B
  6. 5 year EPS growth rate = 14%
  7. 5 year sales growth rate = 1.5%
  8. Sales vs 1 year ago = 7.10%
  9. Long term debt to equity = 1.21
  10. Sales vs 1 quarter ago = -3.3%

Growth

  1. Net Income ($mil) 12/2011 = 15855
  2. Net Income ($mil) 12/2010 = 14833
  3. Net Income ($mil) 12/2009 = 13425
  4. EBITDA ($mil) 12/2011 = 26229
  5. EBITDA ($mil) 12/2010 = 24922
  6. EBITDA ($mil) 12/2009 = 23534
  7. Cash Flow ($/share) 12/2011 = 17.82
  8. Cash Flow ($/share) 12/2010 = 15.83
  9. Cash Flow ($/share) 12/2009 = 14.02
  10. Sales ($mil) 12/2011 = 106916
  11. Sales ($mil) 12/2010 = 99870
  12. Sales ($mil) 12/2009 = 95758
  13. Annual EPS before NRI 12/2007 = 7.13
  14. Annual EPS before NRI 12/2008 = 8.93
  15. Annual EPS before NRI 12/2009 = 10.01
  16. Annual EPS before NRI 12/2010 = 11.52
  17. Annual EPS before NRI 12/2011 = 13.38

Dividend history

  1. Dividend Yield = 1.7
  2. Dividend Yield 5 Year Average = 1.8
  3. Dividend 5 year Growth = 16

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Dividend sustainability

  1. Payout Ratio = 0.23
  2. Payout Ratio 5 Year Average 12/2011 = 0.23

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 10.05
  2. 5 Year History EPS Growth = 16.74
  3. ROE 5 Year Average = 60.88
  4. Return on Investment = 36.61
  5. Debt/Total Cap 5 Year Average = 49.96
  6. Current Ratio = 1.2
  7. Current Ratio 5 Year Average = 1.18
  8. Quick Ratio = 1.1
  9. Cash Ratio = 1.11
  10. Interest Coverage = 48
  11. Retention rate = 77%
  12. Gross margins = 51.8%

Company: Vivus Inc (NASDAQ:VVUS)

Brief Overview

  1. Operating Cash Flow = -59M
  2. Beta = 1.35
  3. 52 week change = 218%
  4. Levered Free Cash Flow = -36M
  5. Long term debt to equity = 0.021
  6. 5 year capital spending rate = -20%
  7. Net income vs quarter 1 year ago = -48%
  8. Short percentage of float = 14%
  9. Percentage held by institutions = 63%
  10. 5 year gross margins average = 84%

Growth

  1. Net Income ($mil) 12/2011 = -46
  2. Net Income ($mil) 12/2010 = -66
  3. Net Income ($mil) 12/2009 = -54
  4. EBITDA ($mil) 12/2011 = -47
  5. EBITDA ($mil) 12/2010 = -71
  6. EBITDA ($mil) 12/2009 = -52
  7. Cash Flow ($/share) 12/2011 = -0.53
  8. Cash Flow ($/share) 12/2010 = -0.85
  9. Cash Flow ($/share) 12/2009 = -0.67
  10. Annual EPS before NRI 12/2009 = -0.75
  11. Annual EPS before NRI 12/2010 = -0.86
  12. Annual EPS before NRI 12/2011 = -0.56

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Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 29.7
  2. ROE 5 Year Average = -26.52
  3. Return on Investment = -30.00
  4. Debt/Total Cap 5 Year Average = 6.81
  5. Current Ratio = 21.00
  6. Current Ratio 5 Year Average = 7.36
  7. Quick Ratio = 21.00
  8. Long term debt to equity= 0.00

Notes

This play has been volatile as of late. Consider waiting for a test of the 18.50-19.50 ranges before jumping. Also, it would not be a bad idea to place a stop 15.00. Alternatively, consider selling puts with strikes in the 18-19 ranges when it trades below 20.00. With this option your final entry price could be well below 18 if the shares are put to your account.

EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware