We all are social animals and we remain the same social animals while thinking about money and investments. Let me discuss today the common investment mistakes which we human beings make as social animals and to understand that we have to branch out to ¨Behavior Economics〃 which combines the twin disciplines of psychology and economics to explain why and how rational people make totally irrational decisions when they spend, invest, save and borrow money.
Sunk Cost fallacy - Throwing Good money after bad
Imagine that somebody has given you a play ticket ¨free〃 in which your favourite star in acting. Now, hours before the play is going to commence you come to know that your favorite star may not be able to act that day and there is big weather problem and going to the theatre and coming back might be risky. Now, imagine that you had actually ¨paid〃 and purchased that ticket. The likely answer is that in the first instance you might not go for the play while in the second instance you might go for the play even though your favourite star is not acting in it and risk traveling in the dangerous weather. This is called ¨sunk cost〃 fallacy � in the first instance since you have not paid for the ticket you donˇt mind skipping the event but in the second instance since you paid hard cash for the ticket you donˇt want to ¨waste〃 the money which is actually already wasted or sunk. The same way in investments many a times because we buy a certain stock of a bad company at a certain price and then it halves then in the name of ¨averaging〃 we invest more in it throwing good money after bad. The lesson we learned from this behavior is that we should not sell winning investments more readily than loosing ones and not take money out of the stock market just because markets have fallen.
Hot Japanese Stocks To Invest In 2015: Essex Property Trust Inc. (ESS)
Essex Property Trust, Inc. operates as a self-administered and self-managed real estate investment trust in the United States. It engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities, as well as commercial properties. As of March 31, 2012, the company owned or had interests in 158 apartment communities; and 5 commercial buildings, as well as 5 development projects. Its communities are located in Los Angeles, Orange, Riverside, San Diego, Santa Barbara, and Ventura counties in southern California; and the San Francisco Bay area in northern California, as well as in the Seattle metropolitan area. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Essex Property Trust, Inc. was founded in 1971 and is headquartered in Palo Alto, California.
Advisors' Opinion:- [By Susan J. Aluise]
Like all ETFs, REZ offers the diversification of a mutual fund, with low expenses and the advantages of trading on a major exchange just like a stock. REZ�� top holdings include multifamily REITs like AvalonBay (AVB), Equity Residential (EQR), Essex Property Trust (ESS) as well as Public Storage (PSA) common stock, which also benefits from the rental housing boom.
- [By Jayson Derrick]
Bloomberg reported�Essex Property Trust Inc. (NYSE: ESS) has made an offer to acquire BRE Properties for about $5 billion.
BRE Properties Chief Executive Office Constance B. Moore had publicly hinted earlier this year that the company would consider ��ny legitimate proposal��after an investment firm Land & Buildings had made a $4.6 billion offer valued at $60 a share.
Top 10 Forestry Stocks To Buy For 2014: Strategem Capital Corp (SGE)
Strategem Capital Corporation (Strategem) is a Canada-based company. It is a publicly-traded merchant bank involved in acquiring interests in and developing companies. The Company takes early debt and/or equity positions in such emerging growth companies. As of December 31, 2009, the Company is focused on companies that explore or develop precious or base metals. Advisors' Opinion:- [By Corinne Gretler]
ThyssenKrupp AG (TKA) slumped 9.3 percent after Germany�� largest steelmaker raised 882.3 million euros ($1.21 billion) through a share sale. Standard Chartered Plc lost 8.1 percent. Sage Group (SGE) Plc, the U.K.�� biggest software maker, rose 6.8 percent after reporting revenue growth that exceeded analysts��estimates. AZ Electronic Materials SA surged 43 percent after Merck KGaA (MRK) agreed to buy it for about 1.6 billion pounds ($2.6 billion).
Top 10 Forestry Stocks To Buy For 2014: Semgroup Corporation(SEMG)
SemGroup Corporation provides gathering, transportation, storage, distribution, blending, marketing, and other midstream services primarily to independent producers, refiners of petroleum products, and other market participants in the Midwest and Rocky Mountain regions of the United States, Canada, and the West Coast of the United Kingdom. It also purchases, stores, and sells natural gas liquids in the United States; provides natural gas gathering and processing services in Canada and the United States; offers refined products and crude oil storage services in the United Kingdom; and purchases, produces, stores, and distributes liquid asphalt cement products in Mexico. The company owns, contracts, and leases various pipelines, gathering systems, storage facilities, terminals, processing plants, blending facilities, and other distribution assets. It operates approximately 1,400 miles of natural gas transportation, gathering, and distribution pipelines in Kansas, Oklahoma, T exas and Alberta, Canada. The company was founded in 2000 and is headquartered in Tulsa, Oklahoma.
Advisors' Opinion:- [By Aimee Duffy]
At this point, it's not really news when Chesapeake Energy (NYSE: CHK ) reports that it's selling assets to anyone who will buy them. The company's quest to scrape together $4 billion to $7 billion to cover its budget shortfall this year has it in the news seemingly every other week. In this video, Fool.com contributor Aimee Duffy discusses Chesapeake's most recent divestiture, and why the real winner in this $300 million deal is the buyer: Tulsa's SemGroup (NYSE: SEMG ) .
- [By Holly LaFon]
In early August SemGroup (SEMG), an owner and operator of oil and gas midstream assets, including pipelines and storage and blending facilities, closed on an opportunistic purchase of assets from Chesapeake Energy. The assets nicely complement SemGroup's existing core assets that stretch from Colorado to Oklahoma. While SemGroup will have to spend money to complete the assets��oney that financially distressed Chesapeake likely could not justify��e view the expenditures favorably given their high return characteristics.From Third Avenue Management's fourth quarter 2013 commentary.
- [By Robert Rapier]
Rose Rock Midstream (NYSE: RRMS) isn’t a name we have discussed much here. RRMS is an MLP that owns oil-gathering, storage and transportation assets in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas. The MLP was formed by midstream energy giant SemGroup (NYSE: SEMG), which acts as the general partner. RRMS had its IPO in December 2011 with an initial EV of $1.2 billion and a minimum yield of 4.7 percent.
Top 10 Forestry Stocks To Buy For 2014: Wolverine World Wide Inc.(WWW)
Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes branded footwear, apparel, and accessories. It offers industrial work shoes, boots, uniform shoes, outdoor sports footwear, rugged casual footwear, lifestyle footwear, sandals, and closed-toe products. It also provides outdoor apparel, and work and rugged casual apparel; and accessories, such as packs, bags, and luggage, as well as eyewear, gloves, handbags, socks, watches, and plush toys. The company offers its products under various brand names, including Bates, Cat Footwear, Chaco, Cushe, Harley-Davidson Footwear, Hush Puppies, HyTest, Merrell, Patagonia Footwear, Sebago, Soft Style, and Wolverine. It sells its products to a range of retail customers, which comprise department stores, national chains, catalogs, specialty retailers, mass merchants, Internet retailers, governments, and municipalities in the United States, Canada, and Europe. The company also markets its products in approximately 190 countries and territories through company-owned wholesale operations, licensees, and distributors. It also licenses its brands for use on non-footwear products. As of December 31, 2011, the company operated 101 retail stores in the United States, Canada, and the United Kingdom; and operated 42 consumer-direct Websites. Further, it markets pigskin leather, and purchases raw pigskins from other source. Wolverine World Wide, Inc. was founded in 1883 and is based in Rockford, Michigan.
Advisors' Opinion:- [By Suravi Thacker]
Skechers has also been able to outpace its peers such as Wolverine World Wide (WWW) and Crocs (CROX). Skechers has provided a return of 88.8%, in terms of stock price appreciation, in the last year. On the other hand, Wolverine World Wide�� stock price dropped by 1.1% and Crocs��price declined 15.1%. This highlights Skechers��attractiveness and its outperformance against its peers.
- [By Monica Gerson]
Wolverine World Wide (NYSE: WWW) is projected to post its Q3 earnings at $0.59 per share on revenue of $720.37 million.
Bank of the Ozarks (NASDAQ: OZRK) is estimated to post its Q3 earnings at $0.39 per share.
- [By Isaac Pino, CPA]
Sustainable, exactly, long term. Let's start with wealth and the importance of walkability in creating strong economies -- and strong companies, for that matter. One of the things that you point out is a company called Wolverine Worldwide� (NYSE: WWW ) , I think based in Grand Rapids, Mich.?
- [By Monica Gerson]
Analysts are expecting Wolverine World Wide (NYSE: WWW) to have earned $1.02 per share on revenue of $712.94 million in the third quarter. Wolverine World Wide shares declined 0.43% to $57.60 in after-hours trading.
Top 10 Forestry Stocks To Buy For 2014: Bristow Group Inc (BRS)
Bristow Group Inc., together with its subsidiaries, provides helicopter services to the offshore energy industry primarily in Europe, West Africa, North America, Australia, and internationally. Its helicopters are used principally to transport personnel between onshore bases and offshore platforms, drilling rigs, and installations, as well as to transport time-sensitive equipment to offshore locations. The company also offers helicopter flight training services to commercial pilots and flight instructors through its Bristow Academy with facilities in Titusville, Florida; Concord, California; New Iberia, Louisiana and Gloucestershire, England. In addition, it provides military training; and helicopter repair, engineering support, aircraft leasing, airport management, and search and rescue services. Bristow Group provides its helicopter services to integrated, national, and independent oil and gas companies. As of March 31, 2011, it operated a fleet of 569 aircraft. The comp any was founded in 1969 and is based in Houston, Texas.
Advisors' Opinion:- [By Chris Hill]
In this installment of Motley Fool Money, our analysts explain why they're watching Buckeye Technologies (NYSE: BKI ) , Bristow Group (NYSE: BRS ) , and Western Union (NYSE: WU ) .
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Bristow Group (NYSE: BRS ) , whose recent revenue and earnings are plotted below. - [By GURUFOCUS]
First comes Bristow Group Inc. (BRS), which provides helicopter services to offshore energy rigs, and is a holding in our traditional mid-cap, small-to-mid cap, and small-cap portfolios. Although energy exploration and production can clearly fluctuate, Bristow offsets those shifts through long-term contracts lasting roughly three to five years. Furthermore, Bristow receives ��onthly standing charges���meaning it gets paid whether its helicopters fly or not��mounting to 70% of its operating income.
- [By J. Royden Ward]
Based in Houston and founded in 1969, Bristow Group (BRS) has major transportation operations in the US Gulf of Mexico and the North Sea.
Bristow also operates in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, Mexico, Nigeria, Russia, and Trinidad.
Top 10 Forestry Stocks To Buy For 2014: Triple-S Management Corporation (GTS)
Triple-S Management Corporation, through its subsidiaries, offers a portfolio of managed care and related products in the commercial and Medicare markets in Puerto Rico. The company operates in three segments: Managed Care, Life Insurance, and Property and Casualty Insurance. It provides managed care products, including health maintenance organization plans; preferred provider organization plans; Medicare Supplement products; Medicare Advantage products; Medicaid plans; and Medicare Part D, a prescription drug plan; and claims processing and other administrative services. The company offers its managed care products to employers, professional and trade associations, individuals, and government entities. It also provides various life, accident, disability, and health and annuity insurance products to individuals; and property and casualty insurance products, which include commercial multi-peril, commercial property mono-line, auto physical damage, auto liability, and dwelli ng policies to commercial customers. The company markets its products through a network of internal sales force, direct mail, independent brokers and agents, telemarketing staff, and the Internet. Triple-S Management Corporation was incorporated in 1997 and is based in San Juan, Puerto Rico.
Advisors' Opinion:- [By Brian Pacampara]
What: Shares of Puerto Rican managed-care company Triple-S Management (NYSE: GTS ) popped 11% today after its quarterly results topped Wall Street expectations.
Top 10 Forestry Stocks To Buy For 2014: Hancock Holding Company(HBHC)
Hancock Holding Company, a financial holding company, provides various banking and financial services in south Mississippi, Louisiana, South Alabama, and Florida. The company accepts various deposit products that include non-interest bearing demand deposits, NOW account deposits, money market deposits, savings deposits, and time deposits. Its loan portfolio comprises provision of commercial, consumer, commercial leasing, and real estate loans to consumers and small and middle market businesses. Hancock also offers various trust services that include operating as an executor, administrator, or guardian in administering estates; provision of investment custodial services for individuals, businesses, and charitable and religious organizations, as well as investment management services on an agency basis; and trustee services for pension plans, profit sharing plans, corporate and municipal bond issues, living trusts, life insurance trusts, and various other types of trusts cre ated for individuals, businesses, and charitable and religious organizations. In addition, it provides consumer financing services; owns, manages, and maintains real property; offers general insurance agency services; holds investment securities; markets credit life insurance; and engages in discount investment brokerage services, as well as owns approximately 3,700 acres of timber land in Hancock County, Mississippi. The company operates 182 banking and financial services offices and 161 automated teller machines. Hancock Holding Company was founded in 1899 and is headquartered in Gulfport, Mississippi.
Advisors' Opinion:- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
CTBI is trading at a premium to all four valuations above. The stock is trading at a 53.5% premium to its calculated fair value of $29.43. CTBI did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
CTBI earned one Star in this section for 1.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The company has paid a cash dividend to shareholders every year since 1988 and has increased its dividend payments for 33 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
The negative NPV MMA Diff. means that on a NPV basis the dividend earnings from an investment in CTBI would be less than a similar amount invested in MMA earning a 20-year average rate of 3.41%. If CTBI grows its dividend at 1.5% per year, it will never equal a MMA yielding an estimated 20-year average rate of 3.41%.
Memberships and Peers: CTBI is, a member of the Broad Dividend Achieve - [By Eric Volkman]
Hancock Holding (NASDAQ: HBHC ) is resolutely sticking to its longtime dividend policy. Matching the same common stock payout it's distributed since September 2006, the financial services concern has declared a distribution of $0.24 per share. This is to be paid on September 16 to shareholders of record as of September 5.
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