AQR Capital Management’s Cliff Asness has launched a healthy discussion about the trials and tribulations of factor timing with a new essay (“The Siren Song of Factor Timing”). He’s recommends that investors steer clear, which is good advice because the crowd’s record, in the aggregate, to successfully engage in market-timing activities generally is overwhelmingly poor. But Asness isn’t an absolutist. Instead, he notes that sometimes the perceived opportunities for engaging in a bit of timing are just too compelling to pass up.
“If you do decide to time factors, not something that I rule out entirely, and if timing is a ‘sin’, then you should ‘sin’ only a little,” Asness recently wrote on his firm’s web site. In the “Siren Song” paper, which is forthcoming in the Journal of Portfolio Management, he points to the extreme excesses of the tech bubble in 1999-2000 and the related decline and fall of the value factor as an example.
Top 5 Value Companies To Watch For 2016: Move Inc.(MOVE)
Move, Inc., together with its subsidiaries, operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America. The company operates REALTOR.com, a Web site that offers property listings and neighborhood profiles; and consumers information and tools designed to assist the customers in understanding the value of their home, preparing the home for sale, listing and advertising the home, home affordability, the offer process, applying for a loan, understand the mortgage options available, closing the purchase, and planning the move. REALTOR.com provides showcase listing enhancements; display ad products; and a series of template Websites primarily for agents and brokers. The company also offers 8i solution, a Web-based customer relationship management software application for real estate agents. In addition, it provides Market Snapshot and Market Builder products that allow real estate professionals to offer real-time mult iple listing services market updates and trend analysis to their online prospects and clients; and Move Rentals that displays rental listings. Further, the company provides graphical display advertisements, text links, sponsorships, and directories for advertisers for mortgage companies, home improvement retailers, moving service providers, and other consumer product and service companies. Additionally, it offers quotes from moving companies, truck rental companies, and self-storage facilities, as well as other move-related information on Moving.com Website. Move, Inc. also operates as an online real estate listing syndicator and provider of performance reporting solutions for the purpose of helping to drive an online advertising program for brokers, real estate franchises, and individual agents. The company was formerly known as Homestore, Inc. and changed its name to Move, Inc. in June 2006. Move, Inc. was founded in 1993 and is headquartered in Westlake Village, Californ i a.
- [By Renu Singh]
Aruba Networks (ARUN) is a leading provider of next-generation network access solutions for mobile enterprise. The company’s Mobile Virtual Enterprise (MOVE) architecture unifies wired and wireless network infrastructures into one seamless access solution for corporate headquarters, mobile business professionals, remote workers and guests. This unified approach to access networks enables IT organizations and users to securely address the Bring Your Own Device (BYOD) phenomenon, dramatically improving productivity and lowering capital and operational costs.
Top 5 Value Companies To Watch For 2016: LyondellBasell Industries NV(LYB)
LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for production of polymers. The company?s Olefins and Polyolefins segment offers olefins, including ethylene, propylene, and butadiene; aromatics, such as benzene and toluene; polyolefins, which comprise polypropylene (PP), high-density polyethylene, low-density polyethylene, and linear low-density polyethylene; specialty polyolefins, including catalloy process resins, PP compounds, and polybutene-1 resins; and ethylene derivatives, which comprise ethanol. Its Intermediates and Derivatives segment provides propylene oxide (PO); PO co-products, including styrene monomers and TBA derivative isobutylene; PO derivatives, such as propylene glycol, propylene glycol ethers, and butanediol; acetyls, such as methanol, acetic acid, and vinyl acetate monomers; ethylene derivatives, which comprise ethylene oxide , ethylene glycol, and ethylene glycol ethers; and flavor and fragrance chemicals. The company?s Refining and Oxyfuels segment offers gasoline and components, ultra low sulfur diesel, jet fuel, and lube oils; diesel, feedstock, fuel oil, gasoline, and bitumen; and gasoline blending components, including methyl tertiary butyl ether, ethyl tertiary butyl ether, and alkylate. Its Technology segment develops and licenses polyolefin and other process technologies. This segment also develops, manufactures, and sells polyolefin catalysts, as well as provides technology services, which comprise safety reviews, training and start-up assistance, engineering services for process and product improvements, and manufacturing troubleshooting. LyondellBasell Industries N.V. has operations in the Americas, Europe, Asia, and internationally. The company was founded in 2005 and is based in Rotterdam, Netherlands. LyondellBasell Industries N.V. is a subsidiary of Prochemie GmbH.
- [By Chad Tracy]
TransCanada is not the only company that stands to profit from the possible Keystone XL approval. Refiners such as Valero and LyondellBasell Industries (NYSE: LYB), as well as construction companies Deere & Co. (NYSE: DE) and Quanta Services (NYSE: PWR) all stand to gain if Keystone XL gets the green light.
- [By Chad Tracy]
In a classic contrarian move, he purchased more shares of troubled plastics-maker LyondellBasell Industries (NYSE: LYB), even as the company was sliding toward bankruptcy.
5 Best Industrial Conglomerate Stocks To Buy For 2016: Formula Systems (1985) Ltd.(FORTY)
Formula Systems (1985) Ltd. provides a range of information technology (IT) solutions and services, and develops and markets proprietary software solutions. It offers software solutions and services, such as outsourcing and developing customized software; computer systems management infrastructures, Web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; computer and telecommunication infrastructure solutions; and professional training courses and advanced professional studies. The company also sells personal computers, portable computers, Intel servers, peripheral equipment, operating systems, servers, and workstations; provides computer and peripheral equipment maintenance services, lab, and helpdesk services; and sells and markets cloud based solutions. In addition, it offers Sapiens ALIS, an L&P software solution for i ndividual, group, and worksite insurance products; Sapiens Retirement Services for record-keeping management; Sapiens Closed Books, a solution to administer policies and claims relating to closed books of business; and Sapiens TOPAZ to handle L&P activities and regulations. Further, the company provides Sapiens IDIT for general insurance carriers; Sapiens Insight for business demands at the insurer level and regulatory needs at the state level; Sapiens Reinsurance that enables property and casualty/general insurance carriers and brokers to handle reinsurance activities on a single platform; and Sapiens DECISION, a business decision management solution. Additionally, it supplies professionals in the areas of accounting and finance, administrative, customer service, clinical, scientific and healthcare, engineering, manufacturing and operations, human resources, IT technology, LI/MFG, and marketing and sales. The company was founded in 1985 and is headquartered in Or Yehuda, Is rael.
- [By Lisa Levin]
On Friday, technology shares rose by 0.26 percent. Meanwhile, top gainers in the sector included Applied Materials, Inc. (NASDAQ: AMAT), up 9 percent, and Formula Systems (1985) Ltd. (ADR) (NASDAQ: FORTY) up 19 percent.
Top 5 Value Companies To Watch For 2016: Select Medical Holdings Corporation(SEM)
Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. It operates in two segments, Specialty Hospitals and Outpatient Rehabilitation. The Specialty Hospitals segment provides long term acute care hospital services and inpatient acute rehabilitative hospital care. This segment offers various medical services for the treatment of respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders, and cancer. The Outpatient Rehabilitation segment operates clinics that provides physical, occupational, and speech rehabilitation services. This segment also offers medical rehabilitative services to residents and patients of nursing homes, hospitals, schools, assisted living and senior care centers, and worksites. In addition, th is segment provides specialized programs, such as functional programs for work related injuries, hand therapy, and athletic training services; and services that are designed to prevent short term disabilities from becoming chronic conditions. As of December 31, 2014, it operated 113 long term acute care hospitals and 16 acute medical rehabilitation hospitals in 28 states; and 1,023 outpatient rehabilitation clinics in 31 states and the District of Columbia. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.
- [By Ben Levisohn]
Overvalued companies include MWI Veterinary (MWIV) andStericycle (SRCL), while companies with attractive valuations include Cardinal Health (CAH), Selected Medical (SEM). He’s not a fan of Intrexon (XON) but callsAratana (PETX) a “hidden gem.”
Top 5 Value Companies To Watch For 2016: American Express Company(AXP)
American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. The company?s product portfolio consists of charge and credit card products; expense management products and services; consumer and business travel services; stored value cards, including travelers cheques and other prepaid products; network services; merchant acquisition and processing, point-of-sale, servicing and settlement, and marketing and information products and services for merchants; and fee services comprising market and trend analyses and related consulting services, fraud prevention services, and the design of customer loyalty and rewards programs. In addition, it publishes luxury lifestyle magazines; business and travel resources; general interest, cooking, travel, wine, cocktail, financial, and time management books; and international and electronic editions. The company sells its products and services to consumer s, small businesses, mid-sized companies, and large corporations through direct mail, on-line applications, targeted direct and third-party sales forces, and direct response advertising worldwide. American Express Company was founded in 1850 and is headquartered in New York, New York.
- [By Alex Planes]
Visa’s long wait to go public — its IPO took place in 2008 — meant that it would not be the first credit card issuer added to the Dow Jones Industrial Average (DJINDICES: ^DJI ) . That honor went to American Express (NYSE: AXP ) , which earned its spot in 1982 by owning the “premium” credit card market — its 52.5 million card members spent far more in 2012 per card ($8,100 on average!) than either Visa’s ($3,500) or MasterCard’s ($3,000) card members. However, there was a certain irony in the fact that Visa, on its induction to the Dow in 2013, became one of the few companies ever added to directly replace the company that first spun it off.
- [By Ben Levisohn]
Shares of American Express (AXP) opened up 3% this morning after reporting a big earnings beat but have since given back a big chunk of those gains. Credit Suisse analyst Moshe Orenbuch and Serena Hong explain why its earnings weren’t necessarily as good as they looked:
American Expressreported 1Q16 EPS of $1.45 ($1.50 excluding restructuring charge), beating our forecast of $1.27 and consensus estimates of $1.33…
Billed business growth accelerated on an FX adjusted basis, we believe, as a result of the extra day in the quarter as well as faster new account growth since mid-2015. However, the company indicated that a significant percentage of the ~2 million excess new accounts were converted Costco cardmembers who could switch to the Citi Costco card which carries higher rewards when those cards are mailed in June.
Revenues and expenses helped: Revenues were up 2% y/y and up 4% y/y on an FX adjusted basis and was helped by the leap year as well as spending from new accounts. Expenses were up 5% y/y, including the $84MM of restructuring charges, and the $127mm JetBlue sale gain. Management noted that there would be less “excess spending” than previously guided and 2Q operating expenses are expected to be down significantly as Amex books its gain from the US Costco sale. Long-term, revenue growth will still be negatively impacted by discount rate pressure, and credit costs will be rising.
Shares of American Express have gained 1% to $65.69 at $11:37 a.m. today, while Costco Wholesale (COST) has dropped 0.9% to $151.40, and JetBlue Airways (JBLU) is off 2.4% at $20.48.