Tag Archives: TMF

Warren Buffett's Timeless Investment Advice for Kids

By Motley Fool Staff

Filed under:

Everyone wants to know what’s on Warren Buffett‘s mind.

Tens of thousands of investors make the pilgrimage to Omaha for the Berkshire Hathaway annual meeting each spring. Many more read his annual letter to Berkshire shareholders. Lunches with Buffett auction for millions — last year’s went for $3.5 million. There’s even a cottage industry on following Buffett’s stock picks and market predictions (CNBC has a “Warren Buffett Watch” blog).

So when you get a chance to interview Buffett, you don’t pass it up, even if it’s not in person or over the phone.

As part of the promotional campaign for the DVD release of “Secret Millionaire’s Club, Volume One,” an animated series aimed at teaching kids about business, investing, and money management, Buffett answered some brief email questions from The Motley Fool. Our questions adhered to the themes of “Secret Millionaire’s Club,” which was released on DVD in mid-March, but, as always, Buffett gives thoughtful advice worth considering.

The Motley Fool: What are you hoping kids will learn from the DVD?

Warren Buffett: We are hoping to help kids understand money matters and develop healthy habits from a young age. Things like: “The best investment you can make is an investment in yourself.” “The more you learn, the more you’ll earn.” “Find something you like to do, and you’ll never work a day in your life.” “Great partnerships will make any job easier.”

TMF: What’s the most important business lesson you learned as a child, and at what age did you learn it?

Buffett: The best teacher I had was my Dad. I was lucky that my parents helped me develop the right financial habits from an early age. And I had wonderful teachers who taught me the fundamentals from an early age. Not calculus, but the basics. If you get the fundamentals right, the rest will follow. We are trying to teach the basics in “Secret Millionaire’s Club,” and hopefully help kids develop healthy habits from a young age.

TMF: How did you get involved with the project?

Buffett: My friend Andy Heyward, who is a producer of kids entertainment, and I came up with the idea to help educate kids about financial matters. I thought the idea of using the power of cartoon characters to carry a message teaching financial lessons at an age when it can help them.

TMF: What’s your hope for the distribution of the DVD? Do you think these topics should be required in public schools across the U.S.?

Buffett: I was lucky that I learned about money and business from my parents and my teachers, but not all kids have that. We created “Secret Millionaire Club” to help teach kids the basics to make good decisions and develop healthy habits from an early age.

In addition to the shows, we have a contest every year that thousands of schools and youth organizations have competed in called the “Learn & Earn” competition. Kids from across the country use what they’ve …read more
Source: FULL ARTICLE at DailyFinance

Good First-Half Progress at Smiths Group

By Jon Wallis, The Motley Fool

Filed under:

LONDON — The share price of Smiths Group — the global technology company that specializes in the practical application of advanced technologies in contraband and threat detection, medical devices, energy, communications and engineered components — published its interim results for the six months ending Jan. 31, reporting good progress across all its businesses.

Underlying headline revenue was up 6% at 1.5 billion pounds, driven by growth across all of the group’s divisions. Revenue in emerging markets, which now account for 15% of the group’s revenue, rose 9%. Underlying operating profit was reported up 5% to 253 million pounds, with underlying pre-tax profit growing 6% to 223 million pounds.

Basic earnings per share were up, but only by 1% to 40 pence. Even so, the board has recommended that the interim dividend be increased by 6% to 12.5 pence per share to reflect the company’s strong operating cash conversion. Smiths Group now stands on a yield of just more than 3%.

Commenting on the results, chief executive Philip Bowman said:

Smiths Group has continued to make good progress with underlying revenue growth across all its businesses. Headline margins rose in all divisions except Smiths Medical where, as part of our growth strategy, we have significantly increased our investment in sales and marketing in emerging markets and new product development. We delivered improved cash conversion and return on capital against last year.

Our priority is driving operational improvements and efficiencies across our businesses while increasing our investment in high growth markets and new product development to accelerate medium-term revenue growth.

Looking to the second half, we see tough trading conditions as a result of the U.S. medical device tax, slower demand in some parts of John Crane, and the impact of further government budget cuts. However, despite these challenges, there remain significant opportunities to generate value for shareholders over the medium term. We will continue to focus on investing to drive sales growth, and delivering further operational improvements, while maintaining strong cash conversion and improved returns.

Smiths Group‘s share price has risen nearly 27% on this time last year, with practically all of that growth coming in the last six months, and the increased dividend will come as a nice bonus for shareholders.

A high-quality growth share
If you’re looking for a high-growth opportunity, you’ll want to know about “The Motley Fool’s Top Growth Share For 2013,” which is named in our latest free report, written by the Fool’s expert analysts. It’s completely free of charge but, like all special reports from TMF, will only be available for a limited period, so get your copy delivered to your inbox now!

The article Good First-Half Progress at Smiths Group originally appeared on Fool.com.


Jon Wallis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish …read more
Source: FULL ARTICLE at DailyFinance

Why MFC Industrial Is Poised to Outperform

By Brian Pacampara, Pacampara, The Motley Fool

Filed under:

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, commodity supply chain company MFC Industrial has earned a respected four-star ranking.

With that in mind, let’s take a closer look at MFC and see what CAPS investors are saying about the stock right now.

MFC facts

Headquarters (founded)

Vancouver, Canada (1951)

Market Cap

$608.6 million

Industry

Trading companies and distributors

Trailing-12-Month Revenue

$503.4 million

Management

Chairman/CEO Michael Smith

Senior Vice President of Finance (Europe) Roland Schulien

Return on Equity (average, past 3 years)

15.6%

Cash/Debt

$278.9 million / $261.2 million

Dividend Yield

2%

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 264 members who have rated MFC believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TMFDeej, highlighted MFC as a potentially attractive “jockey” bet:

I’m not under any illusion that I’m going to find the next Warren Buffett, but someone who’s half as good will still be a successful investment. Over on the TMF message boards, turb0kat, just reminded me about Michael Smith and his impressive history of generating solid returns. For some reason I have never invested alongside him, despite the fact that he is a favorite in some circles. He certainly uses lots of tricks and trinkets with his companies, along the lines of a John Malone type figure after drinking Red Bull. I certainly cannot profess to know a whole lot more about Michael Smith than that, but I plan on tracking his investment vehicle here in CAPS and to do more research on him in the near future.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, MFC may not be your top choice.

If that’s the case, we’ve compiled a special free report for investors called “The 3 Dow Stocks Dividend Investors Need,” which uncovers a few other juicy income opportunities. The report is 100% free, but it won’t be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why MFC Industrial Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends MFC Industrial. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights …read more
Source: FULL ARTICLE at DailyFinance

Witan Investment Trust Boosts Dividend for 38th Year in a Row

By Jon Wallis, The Motley Fool

Filed under:

LONDON — Witan Investment Trust  — one of the largest investment trust listed on the London Stock Exchange, which holds shares in companies such as DiageoBPUnilever, and Pearson — published its annual report for 2012 this morning.

Witan said that it delivered a total return on net asset value (NAV) of 15.6% in 2012, outperforming its benchmark’s 13%. It also noted that, “despite the difficulties that have been placed before the global economy over the last 5 years,” the company had achieved total return on NAV of 18.7%, which is 3.7% ahead of its benchmark. Perhaps more immediately meaningful for shareholders, Witan’s share price has increased 38% over the past five years, compared to the FTSE 100’s 13.5%.

Witan reported that its portfolio generated revenue earnings per share of 14.5 pence in 2012, an increase of 9.3% on the previous year. The board has declared a second interim dividend of 7.2 pence per share, bringing the full-year dividend for 2012 to 13.2 pence per share — a 10% increase over 2011 — giving a current yield of around 2.2%. Impressively, this is the 38th year in a row that Witan has increased its payout to shareholders.

Commenting on the company’s outlook, Witan’s chairman Harry Henderson said:

Although the world appears some way from a return to robust economic growth, sentiment is less fearful, as evidenced by the inflows into equity funds in recent months.

2013 seems likely to be a further year of convalescence for the world economy. A necessary correction in the private sector debt overhang in developed economies has been offset by a burgeoning in public sector budget deficits, to levels which are likely to be unsustainable in the longer term.

The other notable feature of investment markets during 2012 was the plunge in government borrowing rates to multi-century lows. … Bonds being expensive is not itself a reason to buy other assets, such as equities, but it may prompt a broader definition of what is meant by investment risk. If the focus shifts toward investing to preserve real value rather than purely to avoid short-term volatility the outperformance of equities versus bonds in 2012 could have much further to go.

Here at The Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share For 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but like all special reports from TMF it will only be available for a limited period, so get your copy delivered to your inbox now!

The article Witan Investment Trust Boosts Dividend for 38th Year in a Row originally appeared on Fool.com.

Jon doesn’t own shares in Witan Investment Trust. The Motley Fool has recommended shares in Unilever. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish …read more
Source: FULL ARTICLE at DailyFinance

What You Were Buying Last Week: Royal Bank of Scotland

By Jon Wallis, The Motley Fool

Filed under:

LONDON — One of Warren Buffett‘s famous investing sayings is “be fearful when others are greedy and greedy only when others are fearful” — or, in other words, sell when others are buying, and buy when they’re selling.

But we might expect Foolish investors to know that, and looking at what Fools have been buying recently might well provide us with some ideas for good investments.

So, in this series of articles, we’re going to look at what customers of The Motley Fool ShareDealing Service have been buying in the past week or so, and what might have made them decide to do so.

Set to recover?
In the No. 4 spot in the latest “Top Ten Buys” list* is Royal Bank of Scotland . The bank hasn’t had a good time of late and was also in the number four position in the “Top Ten Sells” list a couple of weeks ago, just ahead of the announcement of its 6 billion-pound loss, and since when the share price has continue to fall. So what might have persuaded some people that the bank is worth buying?

Perhaps they think the market has been just a bit too unfair on the bank’s share price. Although it’s still over 13% down on its pre-loss-announcement level, there are some indications that the price is stabilizing, and perhaps even set to start a recovery. At the time of writing, it’s up 1.5% on the day.

Royal Bank of Scotland is also at a quite compelling discount to its tangible net asset value — currently over 30% — which could provide a good upside for investors who are prepared to wait for the share price to play catch-up with the bank’s book value. True, it is still to dispose of a substantial chunk of non-core assets, but there should be value left over that could lift the share price as market sentiment toward the bank improves.

There’s also no doubt that the bank’s balance sheet and share price performance have been hit by various scandals over the past few years — compensation payments for the mis-selling of payment protection insurance and interest rate hedging products, and regulatory fines for LIBOR-rigging have totaled well over 2 billion pounds. If those misadventures are now mostly behind it, the bank’s future should be rather more profitable.  And while it still doesn’t pay a dividend, it may well be in a position to resume paying one by sometime in 2014, which should further improve confidence in the bank.

A high-quality growth share
If you’re not persuaded by Royal Bank of Scotland, but are still looking for a high-quality growth share, you’ll want to get hold of The Motley Fool’s Top Growth Share for 2013 — it’s the latest report by the Fool’s expert analysts and has only just been released.

It’s completely free of charge, but like all special reports from TMF, it will only be available for a limited period, so get your copy delivered …read more
Source: FULL ARTICLE at DailyFinance

IMI Delivers Resilient Results

By Jon Wallis, The Motley Fool

Filed under:

LONDON — IMI , the global engineering company that specializes in the precise control and movement of fluids in critical applications, rose 8% on the week following publication of its preliminary results for the full year ended Dec. 31.

The company saw organic revenue growth of 3%, to 2,190 million pounds, with adjusted pre-tax profit edging up 1%, to 366.3 million pounds, on an operating margin of 17%, which was half a point off 2011’s 17.5%.

This week’s statement said that growth from its new products and in emerging markets more than offset weaker economic conditions in H2, and margins in its fluid power and indoor climate operations both showed “pleasing resilience” in a tough market. It also described the contributions from its new acquisitions, Remosa and InterAtiva, as “encouraging” and said that both provided considerable scope for growth in future years.

Adjusted earnings per share rose 3%, to 84.3 pence, and the board has recommended an increase of 8% in the full-year dividend, bringing it to 32.5 pence per share.

IMI’s chairman, Roberto Quarta, commented:

IMI has delivered a resilient set of results in 2012. In light of this performance, and our confidence in the future prospects for the business, we are pleased to propose an increase in the full-year dividend of 8%.

While the global macroeconomic outlook remains mixed, we are confident of delivering further progress in 2013, supported by higher growth in the emerging markets and an improving contribution from recently introduced new products. In the longer term we are committed to a program of accelerating the convergence of the group’s activities around our sweet spot, through increased investment in sales and engineering, and a focused program of corporate activity, featuring both acquisitions and disposals.

IMI has certainly had a good run — up 17% so far in 2013, almost 33% on this time last year, and more than 180% over the past five years, albeit with a couple of tumbles in 2012. The icing on the cake might be IMI’s dividend — less than the FTSE 100 average, at around 2.5%, but a nice bonus on top of the hefty capital appreciation.

At a current P/E of around 14.6, IMI is at a premium to the FTSE 100 average, and the low forecasts of growth in the near term do make the shares seem rather expensive right now.

If you’re looking for a quality company with excellent growth potential, the Fool’s finest analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but like all special reports from TMF it will be available for only a limited period, so get your copy delivered to your inbox now!

The article IMI Delivers Resilient Results originally appeared on Fool.com.


Jon Wallis and The Motley Fool have no position in …read more
Source: FULL ARTICLE at DailyFinance

Aggreko Powers Ahead on Excellent Results

By Jon Wallis, The Motley Fool

Filed under:

LONDON — Aggreko , the global power and temperature control equipment rental company, rose more than 8% on the week, following this week’s release of its final results for 2012.

Group revenue grew by 13%, to 1,583 million pounds, with trading profit also up 13%, to 388 million pounds, and pre-tax profit 11% higher at 367 million pounds.

In its “Local” business, which operates 194 rental service centers in 47 countries, the company reported a “flawless execution” of its London Olympics contract, a strong performance in its North American operations, and more than 30% growth in emerging-markets business.

Aggreko’s “Power Projects” division reported that revenues were up 15%, although trading profit was down 1%, partly because of increased debt provision. It also said there had been “strong growth” in demand for gas-powered generation.

Earnings per share put on 16%, to 104 pence, and the company is raising its dividend 15% to 23.91 pence, covered a comfortable 4.2 times.

Rupert Soames, Aggreko’s chief executive, commented:

The Local business has had a very strong start to the year, with almost 20% more power on rent than a year ago, helped in part by our acquisition of Poit Energia in April 2012. Encouragingly, growth in the Local business has been broadly spread, with most areas other than Europe showing healthy year-on-year increases in MW on hire.

In Power Projects, we have signed new contracts totalling 140 MW in the year to date, and importantly, we have secured our first large order for our new Heavy Fuel Oil engine, with a 56 MW contract in the Caribbean. We have also secured a contract for 57 MW of diesel-powered generation in Djibouti. Trading continues to be subdued and is likely to remain so in the first half; however, in recent weeks there has been some improvement in the prospect pipeline.

Our expectations for the year as a whole remain unchanged from previous guidance.

The company’s share price is still slightly down on the year to date, owing to a slump at the end of January, and is down almost 20% on this time last year, almost entirely because of a huge sell-off in December, when Aggreko’s management said 2013’s results may well be below 2012’s. Today’s results may well help restore some investor confidence in the company.

Here at the Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but like all special reports from TMF, it will be available for only a limited period, so get your copy delivered to your inbox now!

The article Aggreko Powers Ahead on Excellent Results originally appeared on Fool.com.


Jon Wallis has no position in any stocks mentioned. The Motley Fool recommends Aggreko. Try any of our Foolish newsletter services free for 30 days. We Fools …read more
Source: FULL ARTICLE at DailyFinance

Golden Star Resources Increases Sales but Misses Revenue Estimate

By Seth Jayson, The Motley Fool

Filed under:

Golden Star Resources (AMEX: GSS) reported earnings on March 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Golden Star Resources missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share didn’t change.

Gross margins contracted, operating margins expanded, net margins were steady.

Revenue details
Golden Star Resources logged revenue of $149.7 million. The four analysts polled by S&P Capital IQ foresaw revenue of $155.5 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter’s $118.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.02. The six earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS were -$0.02 for Q4 against $0.02 per share for the prior-year quarter. GAAP EPS of $0.03 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 1.5%, 930 basis points worse than the prior-year quarter. Operating margin was -4.2%, 670 basis points better than the prior-year quarter. Net margin was 6.1%, much about the same as the prior-year quarter.

Looking ahead
Next quarter’s average estimate for revenue is $157.4 million. On the bottom line, the average EPS estimate is $0.03.

Next year’s average estimate for revenue is $595.1 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 796 members out of 860 rating the stock outperform, and 64 members rating it underperform. Among 122 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Golden Star Resources a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Golden Star Resources is hold, with an average price target of $1.91.

Is Golden Star Resources the right gold stock for you? Find out what one TMF analyst thinks is the best way to profit from inflation and gold with a little-known company we profile in, “The Tiny Gold Stock Digging Up Massive Profits.” Click here for instant access to this free report.

The article Golden Star Resources Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

…read more
Source: FULL ARTICLE at DailyFinance

Pace Reports 50% Increase in Profits

By Jon Wallis, The Motley Fool

Filed under:

LONDON — Pace , a leading global developer of PayTV and broadband technologies and products, revealed preliminary full-year results that were full of good news today.

The company reported that revenue had risen 4.1%, to $2,403 million, earnings (before deduction of interest, tax and amortization) were up almost 12%, at $158 million, and profit after tax was up 50.5%, at $58.4 million, perhaps reflecting the company’s new focus on improving operating efficiency.

Basic earnings per share rose 47% to $0.194, and the board proposed a final dividend of $0.0306 per share, bringing the full-year dividend to $0.045 per share, up 20% on 2011.

The company reported that it remains the sole supplier to the largest cable, satellite, and telecoms operators in North America, and remains confident about the long-term strength of the market for its products in that region.

Pace is also now providing products to eight of the 10 largest pay-TV providers in Latin America, and anticipates strong revenue and profitability from key markets and customers in the region in the future.

Europe, however, presents more of a challenge, with a far more fragmented territory, although Pace expects significant growth in the fast developing “media server” segment of the market, and has already been awarded contracts from leading operators in Belgium and Norway.

Pace blamed disruption to its supply of hard disks in the first half of 2012 for a decrease in revenue from its “rest of the world” businesses — which cover highly diverse markets from its traditionally strong Australasian region, to the Middle East, Africam and India — but anticipates “significant growth opportunities” with the continued digitization and uptake of PayTV services in “greenfield” markets.

Mike Pulli, chief executive officer, commented:

I am pleased to report that Pace has performed impressively in 2012, by delivering increased operating profits through both top-line growth and operational efficiency, with a particularly strong second half of the year. We have made good headway on executing our strategy and Pace is becoming a more profitable, cash generative company.

We have momentum, a sustainable platform to build from, and we expect to make further progress in 2013 and beyond.

Pace has performed very impressively since a new executive management team was put in place in Q1 of 2012 — the company’s share price is 20% up so far this year, and a remarkable 180% up on this time last year.

Here at The Motley Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share For 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but like all special reports from TMF, it will only be available for a limited period, so get your copy delivered to your inbox now!

link

The article Pace Reports 50% Increase in Profits originally appeared on Fool.com.


Jon Wallis has no position in any stocks mentioned. The Motley Fool …read more
Source: FULL ARTICLE at DailyFinance

WPP Reports on Another Record Year

By Jon Wallis, The Motley Fool

Filed under:

LONDON — WPP  — the world’s largest advertising group, whose clients encompass all of the Dow Jones companies, including MicrosoftProctor & Gamble, and McDonald’s — published its preliminary results for 2012 this morning.

Although reported billings of 44.4 billion pounds was marginally down on 2011 (blamed on the strength of the pound), the company saw revenue growth of 3.5% — 2.9% on a like-for-like basis — with particularly strong performances in Asia Pacific, Latin America, Africa, and the Middle East.

A record-high operating margin of 14.8% helped pre-tax profit rise over 8%, to 1.1 billion pounds. Diluted earnings per share dipped 2.6%, to 62.8 pence, owing to an exceptional release of corporate tax provisions last year, but the full-year dividend rose almost 16%, to 28.51 pence.

The company said, “2012, the Group’s twenty-seventh year, was like the previous year, a record year, but it felt very different.” It also said that while targets were reached, it “got there ugly.” While WPP thinks its clients were “in better shape” than 2011, it says that a range of factors — the continuing fragility of the eurozone, instability in the Middle East, a soft-landing in the Chinese economy, the “elephant in the room” of the U.S. deficit and record debt, and the possibility of an EU-membership referendum in the U.K. — all conspired to reduce risk-taking.

Whether it “got there ugly” or not, WPP is now up almost 30% on this time last year, and almost 20% for the year to date. Its overall recovery growth over the past few years has been even more impressive — anyone lucky enough to have bought when WPP dipped to around 300 pence in late 2008 has enjoyed a gain of over 250%.

Looking ahead, WPP thinks that “the pattern for 2013 looks very similar to 2012,” and that this year will be “demanding.” But it says that 2014 looks to be “a better prospect,” with a World Cup in Brazil, and the Sochi Winter Olympics, both of which will help raise the profile of their respective regions.

Here at the Fool, our analysts have been focused on finding “The Motley Fool’s Top Growth Share for 2013” for our readers, which is named in our latest report, only just released.

It’s completely free of charge, but, like all special reports from TMF, it will only be available for a limited period, so get your copy delivered to your inbox now!

link

The article WPP Reports on Another Record Year originally appeared on Fool.com.


Jon Wallis doesn’t own shares in WPP. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 …read more
Source: FULL ARTICLE at DailyFinance