Tuesday, September 16, 2014

Top 10 Warren Buffett Companies To Own For 2014

It's unlikely that you will ever hear this spoken: "I bought shares of this stock just so I could go to the annual meeting." Unlikely, that is, unless you're talking about Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) , the giant conglomerate run by Warren Buffett.

Once a year, shareholders flock by the thousands to Berkshire's Omaha home base. This year, as my taxi drive informed me, there were nearly 50,000 visitors expected for the weekend to hear Buffett and Berkshire Vice-Chairman Charlie Munger speak on Berkshire, investing, life, and whatever else happens to come up.

And speak they did. After a short video -- which included an animated Buffett and Munger dancing to "Gangnam Style" and Bryan Cranston getting bullied by Buffett over peanut brittle -- the duo spent the next six or so hours responding to questions from media, shareholders, analysts, and even a Berkshire bear.

Top High Tech Stocks To Watch Right Now: Solitron Devices Inc (SODI)

Solitron Devices, Inc., incorporated on March 12, 1987, designs, develops, manufactures and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The Company manufactures a variety of bipolar and metal oxide semiconductor (MOS) power transistors, power and controls hybrids, junction and power MOS field effect transistors (Power MOSFETS), field effect transistors and other related products. It's products are custom made pursuant to contracts with customers whose end products are sold to the United States government. The Company�� semiconductor products can be classified as active electronic components. The Company�� active electronic components include bipolar transistors and MOS transistors.

The Company�� semiconductor products are used as components of military, commercial, and aerospace electronic equipment, such as ground and airborne radar systems, power distribution systems, missiles, missile control systems, and spacecraft. Its products have been used on the space shuttle and on the spacecraft sent to the moon, to Jupiter (on Galileo) and, to Mars (on Global Surveyor and Mars Sojourner).

Power Transistors

The Company manufactures a variety of power bipolar transistors for applications requiring currents in the range of 0.1 ampere to 300 ampere or voltages in the range of 30 volts to 1000 volts. It also manufactures power diodes under the same military specification. In addition, it manufactures power N-Channel and P-Channel MOSFET transistors and is expanding that line in accordance with customers��requirements.

Hybrids

The Company manufactures thick film hybrids, which generally contain discrete semiconductor chips, integrated circuits, chip capacitors and thick film or thin film resistors. The hybrids are of the high-power type and are custom manufactured for military and aerospace systems. Some of the Company�� hybrids include high power voltage regulators, p! ower amplifiers, power drivers, boosters and controllers. The Company manufactures both standard and custom hybrids.

Voltage Regulators

Voltage regulators provide the power required to activate electronic components such as the integrated circuits. These circuits are found in all electronic devices from radar and missile systems to smart phones.

Field Effect Transistors

The Company manufactures about 30 different types of junction and MOS field effect transistor chips. They are used to produce over 350 different field effect transistor types. The Company�� field effect transistors conform to standard Joint Electronic Device Engineering Council designated transistors, commonly referred to as standard 2N number types. It manufactures both standard and custom field effect transistors.

The Competes with IXYS Corporation, Motorola Inc., International Rectifier, Microsemi Corporation, M.S. Kennedy Corporation, Natel Engineering Company and Sensitron Semiconductor.

Advisors' Opinion:
  • [By Geoff Gannon] strong>OPT-Sciences (OPST)

    Micropac

    Micropac is 76% owned by Heinz-Werner Hempel. He�� a German businessman. You can see the German company he founded here. He�� had control of Micropac for a long-time. I don�� have an exact number in front of me. But I would guess it�� been something like 25 years.

    ADDvantage

    ADDvantage Technologies is controlled by the Chymiak brothers. See the company�� April 4 press release explaining their decision to turn over the CEO position to an outsider. Regardless, the Chymiaks still control 47% of the company. Ken Chymiak is now chairman. And David Chymiak is still a director and now the company�� chief technology officer. Clearly, it�� still their company.

    By the way, the name ADDvantage Technologies has nothing to do with the Chymiaks. Today�� AEY really traces its roots to a private company called Tulsat. The Chymiak brothers acquired that company about 27 years ago. So, effectively, when you buy shares of AEY you are buying into a 27-year-old family-controlled company.

    That�� pretty typical in the world of net-nets.

    Solitron

    Solitron Devices is 29% owned by Shevach Saraf. He has been the CEO for 20 years. The post-bankruptcy Solitron has never known another CEO. Before the bankruptcy, Solitron was a much bigger, much different company. So even though we are not talking about the founder here ��and even though 70% of the company�� shares are not held by the CEO ��we��e still talking about a company where one person has a lot of control. Solitron only has three directors. Saraf is the chairman, CEO, president, CFO and treasurer. Neither of the other two directors joined the board within the last 15 years. So, we aren�� talking about a lot of tumult at the top.

    In fact, profitable net-nets seem to be especially common candidates for abandoning the responsibilities of a public company without actually getting taken private.

    OPT-Sciences

    This

  • [By Geoff Gannon]

    Solitron (SODI) sells at 74% of NCAV, has decent z- and f-scores, a FCF margin of 5.3% and an ROA of 12%.

    Micropac (MPAD) sells at 83% of NCAV, has similar (slightly better) z- and f-scores, a FCF margin of 6%, but has ROA of 28%.

    ADDvantage (AEY) sells at 95% of NCAV, has similar (in the ballpark) scores and FCF and ROA of 23%.

  • [By Geoff Gannon] on the amount of stock you can buy and the position size you like. For me, I try not to start buying a stock that I think will never make up 10% of my portfolio. If you don�� mind having 5% positions in your portfolio, your portfolio can obviously be twice as big as mine and you can still consider buying the same small stocks I do. In terms of specific stocks, it depends on the amount of float and the volume the stock trades in an average month. We are really getting into specifics here. And I may be boring people. But if you�� like to hear more about the minutiae of how you actually buy and sell tiny stocks like these, let me know, and I��l do an article on the subject.

    By the way, there is a hard and fast rule of thumb that it usually makes no sense to invest in a company with a market cap that is smaller than your portfolio. This is true for both fund and individual investors. Funds break it all the time. But, frankly, it is probably a waste of an analyst/fund manager�� time to even analyze such tiny positions relative to the size of the whole portfolio. Since even when we are discussing very small stocks we are still talking about millions and millions of dollars in market cap, this is hardly a concern for most individuals.

    So, for individual investors, actual inability to acquire enough shares of a company to meaningful influence their portfolio is rarely the problem. If you bid for a stock month after month ��you��l get your shares.

    The concern for individual investors is not whether buying enough shares is possible. The concern is how quickly and easily you can buy and sell. This is what we call ��iquidity.��/p>

    Instead of thinking about stocks as liquid or illiquid, you should think in terms of your portfolio and your liquidity needs. It doesn't make much sense to use what I'll call an "objective" (as in stock-oriented) approach to liquidity rather than a "subjective" (as in investor-oriented) approach to liquidity.

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Top 10 Warren Buffett Companies To Own For 2014: Insignia Systems Inc.(ISIG)

Insignia Systems, Inc. markets in-store advertising products, programs, and services to consumer packaged goods manufacturers and retailers in the United States and internationally. The company focuses on providing in-store services through the Insignia Point-Of-Purchase Services (POPS) in-store advertising program. Its Insignia POPSign program is a national account-specific in-store shelf-edge advertising program, which allows manufacturers to deliver vital product information to consumers at the point-of-purchase together with each retailer?s store-specific prices. The company also offers Stylus software, which allows retailers to create signs, labels, and posters by manually entering the information or by importing information from a database; and laser printable cardstock and vinyl labels, including adhesive and non-adhesive supplies in various colors, sizes, and weights to retailers for their in-store signage and shelf-edge product information needs. The company dire ctly markets its Insignia POPSign program to food and drug manufacturers and retailers; and markets its Stylus software through resellers. Insignia Systems, Inc. was founded in 1990 and is based in Minneapolis, Minnesota.

Advisors' Opinion:
  • [By CRWE]

    MINNEAPOLIS- October 26, 2013 -(CRWE Press Release) -Insignia Systems, Inc. (NASDAQ:ISIG) announced that it intends to hold a conference call on Wednesday, October 30 at 4:00 PM Central Time to discuss the Company’s financial performance for the third quarter of 2013, which will be released Wednesday, October 30 at 3:05 PM Central Time.

    Participants may access the live call by dialing the toll-free number 877-268-1608 and provide Conference ID 98094181. Please be sure to call in about 5-10 minutes before the call is scheduled to begin. Audio replay will be available approximately two hours after the call until November 6, 2013 by dialing 855-859-2056 and referencing Conference ID 98094181. The audio recording will also be archived on the Company�� website approximately two days after the call until November 30, 2013. Financial information to be provided in the conference call, as well as information pertaining to the Company�� past financial performance, may be accessed on the Investor Relations page of the Company�� website at www.insigniasystems.com.

    Insignia Systems, Inc. is a developer and marketer of in-store media solutions, programs and services to retailers and consumer goods manufacturers. Through its Point-Of-Purchase Services (POPS) business, Insignia inspires shoppers and delivers value by providing at-shelf advertising solutions in over 13,000 chain retail supermarkets, over 1,700 mass merchants and 7,000 dollar stores. Through the nationwide POPS network, over 200 major consumer goods manufacturers, including Armour-Eckrich, General Mills, Hormel, Kellogg Company and Nestl茅, have taken their brand messages to the point-of-purchase. For additional information, contact (888) 474-7677, or visit the Insignia website at www.insigniasystems.com.

    Contact

Top 10 Warren Buffett Companies To Own For 2014: Barratt Developments PLC (BDEV)

Barratt Developments PLC is a holding company. The Company�� principal activities consists of acquiring and developing land, planning, designing and constructing residential property developments and selling the homes it builds. The Company operates in two segments: housebuilding and commercial developments. The Company operates across a spectrum of the market from flats to family homes and urban regeneration schemes. The Company also has a focused commercial developments business. The Company builds a range of homes ranging from those for first-time buyers, to family homes, to high-rise flats and affordable housing. The Company�� housebuilding business trades under the Barratt Homes, David Wilson Homes and Ward Homes brands. The Company�� subsidiaries include BDW Trading Limited, BDW North Scotland Limited, David Wilson Homes Limited and Wilson Bowden Developments Limited. Advisors' Opinion:
  • [By Inyoung Hwang]

    U.K. homebuilders declined as increasing bond yields spurred concern rising interest rates may hinder the housing recovery. Barratt Developments Plc (BDEV) sank 7.4 percent, Persimmon Plc fell 3.6 percent and Taylor Wimpey Plc lost 3.7 percent.

Top 10 Warren Buffett Companies To Own For 2014: Norwegian Air Shuttle ASA (NAS)

Norwegian Air Shuttle ASA is a Norway-based company active in the low-cost airline industry. It operates scheduled services with additional charter services. It has a route portfolio that stretches across Europe into North Africa and the Middle East, as well as Thailand and the US. The Company operates approximately 400 routes and over 120 destinations. It has a fleet of over 80 jet aircrafts, including Boeings 737-800, Boeings 787-8 Dreamliners, Boeings 737 MAX8 and Airbuses A320neo. It is the parent company of the Norwegian Group and operates through subsidiaries, including Norwegian Air Shuttle Polska Sp z o o, Norwegian Air Shuttle Sweden AB, Call Norwegian AS, NAS Asset Management Norway AS, among others. Advisors' Opinion:
  • [By GURUFOCUS]

    EMC�� products ��both hardware and software - are litearlly a geek�� wonderland alphabet soup, which include Storage Area Network (SAN), Network Attached Storage (NAS), Direct Attached Storage (DAS), Virtual SAN, All-Flash XtremIO, Atmos, Avamar, �Data Domain, Isilon, Pivotal, ViPR Software Defined Storgae, VMAX, VNX, VNXe, VPLEX, VSPEX (none of these are typos).� Information storage makes up 70% of revenues and virtualization 23% of revenues.� Products generate 55% of revenues.� Services generate 45% of revenues.� The Company�� gross profit split is approximaltey 67% data storage and 31% virtualization.

Top 10 Warren Buffett Companies To Own For 2014: STERIS Corporation(STE)

STERIS Corporation and its subsidiaries develop, manufacture, and sell infection prevention, contamination control, microbial reduction, and surgical support products and services for healthcare, pharmaceutical, scientific, research, industrial, and governmental customers worldwide. It provides steam, vaporized hydrogen peroxide, and ethylene oxide sterilizers; liquid chemical sterilant processing systems; washer/disinfector systems; general and specialty surgical tables; surgical and examination lights; equipment management systems; operating room storage cabinets; warming cabinets; scrub sinks; and other products and accessories. The company also offers connectivity solutions, such as operating room integration, workflow, patient tracking, and instrument management that allow transfer of information and images; cleaning chemistries and sterility assurance products; cleansing products, including hard surface disinfectants, and skin care and hand hygiene solutions; high-pu rity water equipment; vaporized hydrogen peroxide generators. In addition, it sells contract materials processing services using gamma irradiation and ethylene oxide technologies, as well as offers microbial reduction services based on customer specifications. Further, the company provides maintenance programs and repair services, sterilization and surgical management consulting services, information management and decision support services, and other support services, such as construction and facility planning, engineering support, device testing, customer education, hand hygiene process excellence, asset management/planning, and the sale of replacement parts. STERIS Corporation sells its products to end users, dealers, and distributors through direct field sales and service representatives. The company was formerly known as Innovative Medical Technologies and changed its name to STERIS Corporation in 1987. STERIS Corporation was founded in 1985 and is headquartered in Ment or, Ohio.

Advisors' Opinion:
  • [By Sean Williams]

    What: Shares of Steris (NYSE: STE  ) �-- a manufacturer of infection prevention, contamination control, and surgical support products for the health-care industry -- jumped as much as 10% after reporting better-than-expected fourth-quarter results.

Top 10 Warren Buffett Companies To Own For 2014: Oil and Natural Gas Corporation Ltd (ONGC)

Oil and Natural Gas Corporation Limited (ONGC) is an India-based company. The Company is mainly engaged in the oil exploration and production activities. The Company operates in two segments: Offshore and Onshore. Its subsidiaries include ONGC Videsh Limited (OVL), Mangalore Refinery & Petrochemicals Ltd., ONGC Nile Ganga BV, ONGC Narmada Limited, ONGC Amazon Alaknanda Limited, ONGC Campos Ltda, ONGC Nile Ganga (Cyprus) Ltd. and ONGC Nile Ganga (San Cristobal) B.V. Advisors' Opinion:
  • [By Lyubov Pronina]

    Reliance Industries Ltd. (RIL) and Oil & Natural Gas Corp. (ONGC), India�� biggest energy explorers, led Indian stocks higher as the nation�� cabinet agreed to lift the price of natural gas. The rupee posted the biggest quarterly drop since 2011.

  • [By Jonathan Burgos]

    India�� biggest energy companies rose after the government agreed to raise the price of natural gas. Reliance Industries Ltd., operator of the world�� biggest oil refining complex, climbed 3.1 percent to 855.2 rupees in Mumbai. Oil & Natural Gas Corp. (ONGC) added 1.7 percent to 325.70 rupees.

  • [By Zahra Hankir]

    India�� (SENSEX) benchmark stock index fell for a fourth day, capping its biggest weekly loss in three months, as the rupee dropped to a six-week low. HDFC Bank Ltd. (HDFCB) dropped 1.9 percent, leading a gauge of banking shares to a fifth day of losses, the longest losing streak since July. Oil & Natural Gas Corp. (ONGC) slid to a three-week low, leading a slide in the S&P BSE India Oil & Gas Index.

Top 10 Warren Buffett Companies To Own For 2014: AMR Corp (AAMRQ)

AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.

To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.

American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.

The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors' Opinion:
  • [By Tom Aspray]

    Though my focus is on the technical, I don’t discount the fundamentals, and therefore, one predominantly fundamental site is included in my list. The initial slides were generated on Tuesday afternoon after the announcement was made that US Airways Group, Inc., (LCC) and American Airlines (AAMRQ) reached a settlement allowing their $17 billion dollar merger to go through.

  • [By Rich Smith]

    On Monday, in a joint announcement, merging partners AMR Corporation (NASDAQOTH: AAMRQ  ) and US Airways (NYSE: LCC  ) announced that after they have merged. Current AMR Chairman and CEO Tom Horton will serve as chairman of the board of the new company, while US Airways Chairman and CEO Doug Parker will serve as�CEO of the new American and also sit on the board of directors.

  • [By Ben Levisohn]

    Texas isn’t the only state backing the merger of AMR Corp. (AAMRQ), the parent of American Airlines, and US Airways (LCC). Oklahoma has now voiced its support for the combination.

    Agence France-Presse/Getty Images

    Tulsa World reports:

    Oklahoma Attorney General Scott Pruitt is continuing to press for the merger of American Airlines and US Airways, telling a court in Washington, D.C., that he intends to file for “friend of the court” status for the upcoming trial in an antitrust lawsuit brought by the Justice Department.

    Pruitt’s announcement Wednesday came the same day as mayors of seven cities, all with American and US Airways hubs, sent a letter to U.S. Attorney General Eric Holder asking him to withdraw the lawsuit.

    Michael Linenberg�also raised US Airways to Buy from Hold. Analyst Michael Linenberg and team explain:

    We are raising our rating on US Airways’s shares from Hold to Buy based on an improved fundamental outlook that, in our opinion, transcends the potential uncertainty surrounding the company’s proposed merger with American which has been blocked by the DOJ. The improvement observed in the Sep Q (e.g. pretax margin expanded 4 points to 9.5%) combined with material revisions to our 2013 and 2014 EPS estimates underlie a revised 12 month price target of $30 implying upside of 40% for LCC shares. We believe that math is too compelling to disregard despite regulatory uncertainty that may not be resolved until early 2014.

    Shares of AMR Corp. have gained 9.7% to $6.91–just 3.4% from its 52-week high–while US Airways has risen 5.5% to $22.57. Southwest Airlines (LUV) has advanced 3.4% to $16.96, Delta Air Lines (DAL) has jumped 2.6% to $26.27 and JetBlue Airways (JBLU) is up 2.9% at $12.31.

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