Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Broker T. Rowe Price
(TROW) Outpaces S&P 500 Nearly
+49% in a Tough Market
Published:
June 16, 2008
Over
the past ten years, the exchange-traded fund (ETF) industry has
enjoyed explosive growth. In 2007 alone, more than
270 new funds hit
the market for the first time,
roughly one per trading
day -- and investors poured
$186 billion into those
new funds.
At StreetAuthority, we believe that ETF's provide a low-cost,
tax-efficient way for investors to gain access to exciting
sectors and regions that were previously tough for U.S.
investors to crack. In fact, we have even launched an entire
newsletter,
ETF
Authority, devoted to helping readers track down
some of the market's most promising funds.
Still, while ETF assets have surged 90-fold over the past decade
to surpass $600 billion, that's still a drop in the bucket
compared to the $12 trillion that is invested in mutual funds.
And considering that mountain of cash generates a steady stream
of high-margin, fee-based revenues for the companies in charge,
it shouldn't come as a surprise that the asset management
business has been fertile ground to dig up big winners.
As editor of our
Half-Priced Stocks newsletter, I first explored this
industry in the January 2007 issue. At the time, I singled out
three players that were trading at near double-digit discounts
or greater to their true fair value, including Baltimore-based
T. Rowe Price (Nasdaq: TROW, $62.83).
Unlike most of its publicly-traded rivals, T. Rowe Price is best
known for marketing inexpensive, no-load funds directly to the
public, although it does offer some of its best-selling products
through financial advisors via fee-based platforms. The company
is also highly visible in the annuity, variable life insurance
and retirement plan markets -- just try finding a 401(K) plan
that doesn't offer a T. Rowe Price fund among its lineup.
As I noted at the time, there were several reasons to like the
company. Annual revenues had doubled over the prior four years,
and roughly $0.30 of every dollar was reaching the free cash
flow line. As a result, the firm was debt-free, had a cash
stockpile of $1.2 billion, was investing heavily in stock
buybacks, and had just boosted its quarterly dividend by a hefty
+21%.
Since that time, the stock has raced past its conservative $48
fair value and reached a peak near $63 on Friday -- a gain of
+47% in a challenging period where the S&P 500 lost -1.6%.
In this month's newsletter, I profile another company that has
done an admirable job of converting sales into free cash flow.
In fact, as operating margins have expanded from 6% to 29% over
the past four years, cash flows have ballooned from $42 million
to $1.2 billion. Better still, the company has a commanding 40%
market share and has seen a +115% spike in unit shipments over
the past year -- yet is trading at the same discount that T.
Rowe Price was before it took off.
To learn more about this exciting company, we invite you to try
out
Half-Priced Stocks at no obligation. If you don't
like what you see, we'll return every penny. To learn more,
please
visit
the following link.
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Nathan Slaughter
StreetAuthority Staff Writer
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
get a lot simpler -- starting today.
Go here to learn about Amy's simple investing strategy.
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