PRO articles cover stocks that fly under most investors' radar screens.
Assured Guaranty - Significant Intrinsic Value Per Share Growth Continues
- Assured Guaranty is an example of a publicly traded business that is available at a minimum of a 40% discount to its intrinsic value.
- Assured Guaranty is the leading municipal bond insurance company in the United States and has a sterling track record of underwriting.
- The company earned $491MM of operating income in 2014, but this is a company that has earnings potential that is much greater in a higher interest rate environment.
Ally Financial: 67% Of Tangible Book Value Is Laughable
- In an expensive market, Ally is profitable and trading at 67% of tangible book value, presenting a compelling value for long-term shareholders.
- Investors can buy the business at a massive discount to liquidation value, while returns on equity, profit margins and dividends are likely to increase materially over the next 3-5 years.
- Within 3-5 years, as book value grows and that ROE expansion comes through, it is very realistic to imagine Ally trading at $35-$40 per share.
Citizens Financial Group: ROE And Valuation Will Only Go Up
- Citizens Financial Group was an undermanaged and neglected part of a massive conglomerate, the recent spin-off from RBS provides investors with a well financed bank at a cheap price.
- RBS was forced to shrink itself aggressively so Citizens was not in a position to grow assets or staffing, as a result the company is overly-capitalized with a low ROE.
- Management is now dedicated to improving efficiency and growing the business, a corresponding increase in ROE should follow.
- The company has a lot of room for improvement in areas such as Treasury Services and mortgage origination, but creating that effective cross-selling culture will most certainly take time.
Ensco PLC: Valuation And Financial Strength Make It A Compelling Buy
- Ensco provides one of the best risk/reward opportunities in the energy industy.
- With the recent drop in oil prices, demand for rigs will no longer exceed supply; E&P companies will now likely focus on the complete drilling solutions Ensco provides.
- ESV's 33% leverage ratio, one of the lowest in the industry, should allow ESV to weather the current turmoil in oil markets and emerge a stronger player.
Helmerich & Payne- Might Be Time To Catch That Falling Knife
- Helmerich & Payne provides an excellent opportunity to buy a well-financed company with significant upside for the long-term oriented investor.
- The recent drop in oil prices is likely to cause significant pain for H&P's more leveraged competitors, allowing H&P to gain market share in the future as prices recover.
- H&P's advanced and cost effective rigs give them a competitive advantage over its competitors.
Discovery Communications, Inc.- Content Will Once Again Prove To Be King
- Investing in Discovery Communications offers investors a first class media franchise at a discount price.
- By not paying the high fees of celebrity actors, Discovery communications produces thousands of hours of content at attractive margins each year.
- Recent guidance has lowered the near-term forecast for DISCA penalizing the stock, much of this can be attributed to currency valuations and should be seen as a buying opportunity.
Ally Financial - Buy Before ROE Expansion
- Government ownership in Ally Financial presents an opportunity; as government ownership of the stock decreases, so too should the discount applied to the stock from government ownership.
- Ally doesn't have a branch network, allowing it to have a lower cost structure than its peers.
- Expensive legacy costs from the Real Estate bubble still haunt Ally's balance sheet- but as these costs are wound down the benefits to the balance sheet should become apparent.
AGCO Corp.: Cyclical Downturn In Farm Incomes Creates A Buying Opportunity
- Short-term concerns and a cyclical downturn have created a buying opportunity for AGCO.
- AGCO boasts a tremendous geographical footprint and is one of the three leading farm equipment manufacturers.
- At current prices, AGCO is an attractive acquisition target for a merger, buyout, or the common shareholder.
Assured Guaranty - Aggressive Stock Buyback Will Reward Long-Term Investors
- Assured Guaranty trades at a discount to its intrinsic value.
- Share buybacks done at a discount to intrinsic value increase the intrinsic value of the remaining shares.
- The Detroit bankruptcy proved more manageable to the industry than many feared.
Ratings Improvement And Higher Interest Rates Should Propel Assured Guaranty Higher
- Assured Guaranty has outpaced its rivals through prudent underwriting.
- AGO reported 2013 operating earnings of $3.25 per share, up 15.7% YoY.
- AGO's primary Operating Subsidiaries upgraded by S&P to 'AA' from 'AA-'.
- Ultra Petroleum - The Best Pure-Play For Increasing Natural Gas Prices
- Aeropostale: Distressed Teen Retailer Is A Perfect Fit For A Private Equity-led Buyout
- Assured Guaranty - Value Investing 101
- Fiesta Restaurant Group Offers Significant Long-Term Potential
- ING US - Unloved, Underappreciated, And Undervalued
- Peabody Energy: Commodity Contrarian Investing 101
- Ultra Petroleum Could Double Within 3 Years
- Investors Title Company Will Continue To Build Its Intrinsic Value With A Strong Housing Market
- Superior Industries Is A Buyout Candidate, Despite New Plant Build
- Fiesta's Long-Term Growth Potential Could Be Unlocked By An Equity Issuance Or Merger
- Assured Guaranty - Aggressive Stock Buyback At Discount To Net Asset Value Will Be Huge
- Assured Guaranty: Resolution Of Uncertainties Should Continue To Improve Stock Price