Don't let today's performance of the Dow Jones Industrial Average (DJINDICES: ^DJI ) fool you. While the blue-chip index is down slightly, 24 of its 30 components are higher late in the trading session. The broader S&P 500 is also making moderate gains.
The discrepancy owes to the Dow's peculiar construction. Unlike other stock indexes like the S&P 500, which use market capitalization to weight the component parts, the Dow's weighting is based strictly on share price. As a result, the most expensive stock carries the most weight, and the cheapest stock the least.
The reason the Dow is underperforming its broader counterpart, in turn, is that its most heavily weighted component, IBM (NYSE: IBM ) , is getting absolutely slammed today, down by 8% in afternoon trading. Selling for $190 per share, the technology and business services giant accounts for almost 11% of the Dow's daily deviations.
10 Best Cheapest Stocks For 2014: Cash America International Inc.(CSH)
Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. This segment also involves in arranging loans for customers with independent third-party lenders through a credit services organization program; providing marketing and loan processing services for a third-party bank issued line of credit on certain stored-value debit cards that the bank issues; and purchasing a participation interest in certain line of credit receivables originated by the bank. The Check Cashing segment provides check cashing and other financial services, such as stored-value cards, money orders, and money transfers. This segment operates its check cashing locations under the Mr.Payroll name. As of December 31, 2009, it operated 676 pawn lending locations, including 667 company-owned units and 9 unconsolidated franchised units; 246 cash advance locations; and 120 unconsolidated franchised and 6 consolidated company-owned check cashing locations. The company was founded in 1984 and is headquartered in Fort Worth, Texas.
Advisors' Opinion:- [By Cutler]
This chain of pawnshops is a backdoor way to play an increase in gold prices. Pawnshops have now replaced mainstream banks as the lender to the sub-prime community. Not only that, when people borrow from a pawnshop, they often hand over gold as collateral. As gold rises, so do the asset values sitting in the pawn shop. At nine times earnings, this one is cheap going into 2012. I own it.
10 Best Cheapest Stocks For 2014: Generali(GASI.MI)
Assicurazioni Generali S.p.A. provides various insurance and financial products and services worldwide. The company offers life insurance products that include savings and protection policies, such as automobile third party liability, personal injuries, industrial plants, and family protection, as well as individual and group pension schemes. It also provides unit-linked and supplementary pension policies, and health insurance products. In addition, the company offers assistance services in the areas of motor, travel, health, home, and family businesses. Further, it provides asset management, properties and financial services, and private banking services. The company was formerly known as Assicurazioni Generali Austro-Italiche and changed its name to Assicurazioni Generali S.p.A. in 1848. Assicurazioni Generali S.p.A. was founded in 1831 and is headquartered in Trieste, Italy.
Top 5 Financial Companies To Own For 2014: Ultratech Inc.(UTEK)
Ultratech, Inc. develops, manufactures, and markets photolithography and laser thermal processing equipment. It supplies step-and-repeat photolithography systems based on one-to-one imaging technology to semiconductor device manufacturers for applications involving line geometries of 0.75 microns or greater and to nanotechnology manufacturers. The company?s steppers are also used to manufacture semiconductors that are used in various applications, such as telecommunications, automotive control systems, power systems, and consumer electronics. It also supplies 1X photolithography systems to thin film head manufacturers; and offers LSA100, a laser-based thermal annealing tool used by the semiconductor industry for various process steps, including activation of implanted impurities, dielectric film formation, formation of silicides, and stabilization of copper grain structures. Ultratech, Inc. sells its systems to semiconductor, advanced packaging, high-brightness light emit ting diodes, thin film head, and various other nanotechnology manufacturers in North America, Europe, and Asia. The company was founded in 1979 and is headquartered in San Jose, California.
10 Best Cheapest Stocks For 2014: New World Resource Corp. (NW.V)
New World Resource Corp. engages in the exploration and development of mineral properties in the Americas. The company holds a 75% interest in the Lipe帽a/Bonete gold-copper project covering a total area of 5,975 hectares located in the town of San Pablo de Lipez; and an option to acquire a 99% interest in the Pastos Grandes lithium brine project consisting of approximately 120 square kilometers situated in the Sud Lipez province within the Department of Potosi, Bolivia. It also explores for silver properties. The company was incorporated in 1983 and is headquartered in Vancouver, Canada.
10 Best Cheapest Stocks For 2014: international ferro metals npv(IFL.L)
International Ferro Metals Limited operates as an integrated ferrochrome producer. It mines and processes chromite, as well as produces and sells ferrochrome for use in stainless steel production. The company owns Lesedi chromite mines in Buffelsfontein, South Africa; and 80% interest in the Sky Chrome project, which is located adjacent to the Buffelsfontein plant. It has operations in Australia, China, Europe, South Africa, Taiwan, Japan, South Korea, and the United States. The company is headquartered in Sydney, Australia.
10 Best Cheapest Stocks For 2014: Vectura Group Plc(VEC.L)
Vectura Group plc, a product development company, develops inhaled therapies principally for the treatment of respiratory diseases in the United Kingdom and internationally. It offers ADVATE, a serum-free recombinant factor VIII for haemophilia A; Adept, a 4% icodextrin solution used during surgery to reduce post-surgical adhesions; and Extraneal, a solution containing icodextrin for peritoneal dialysis, as well as Asmasal Clickhaler, Asmabec Clickhaler, Budesonide Clickhaler, Formoterol Clickhaler, and Meptin Clickhaler for the treatment of asthma. The company?s product pipeline comprises NVA237 and QVA149 for chronic obstructive pulmonary disease (COPD); VR315, VR632, and Duohaler for asthma/COPD; VR496 for cystic fibrosis/COPD; VR040 for Parkinson?s disease; VR909 for lung transplant rejection; VR461 for Anti-fungal; and VR506 for asthma. It has development collaborations with Novartis, Sandoz, Baxter, and GlaxoSmithKline. Vectura Group plc was founded in 1997 and is headquartered in Chippenham, the United Kingdom.
10 Best Cheapest Stocks For 2014: Orsa Ventures Corp (ORN.V)
Orsa Ventures Corp., an exploration company, engages in the acquisition and exploration of mineral properties in Canada. It has an option to purchase the Coal Canyon gold property located in the west Humboldt Range, Nevada; and the Ashby property located in the northwest of Tonopah, Nevada. The company was founded in 1998 and is based in Vancouver, Canada.
10 Best Cheapest Stocks For 2014: Devon Energy Corporation(DVN)
Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.
Advisors' Opinion:- [By ChemTrade]
Devon Energy Corporation (NYSE:DVN): Down 2.71% to $55.37. Devon Energy Corporation is an independent energy company that is involved primarily in oil and gas exploration, development and production, the transportation of oil, gas, and NGLs and the processing of natural gas. The Company also has marketing and midstream operations primarily in North America that include gas, crude oil and NGLs.
- [By McWillams]
Oklahoma-based Devon Energy(DVN) is an analyst favorite, receiving 21 "buy" ratings and nine "hold" calls, but no "sell" rankings.
Devon explores for and produces natural gas and oil. Its stock has run up 33% in the past three months, fulfilling Jefferies' thesis. Now, it has just 3% of upside before passing the bank's price target. It might be best to wait for a pullback before buying Devon. But, most-bullish Macquarie, an Australian investment bank with a focus on energy companies, expects Devon's stock to advance another 14% to $98 in 12 months.
Devon's business is largely focused on natural gas, with two-thirds of sales from that commodity and the other third coming from oil and natural gas liquids. It also owns gas pipelines and treatment facilities.
Natural gas is domestically abundant. In fact, some geologists estimate that North America houses the richest natural gas deposits. For this reason, businessmen, such as T. Boone Pickens, think using this resource is critical to energy independence.
The downside is that recent shale discoveries have expanded supply and dampened the commodity's pricing. Devon has been repositioning itself as an onshore North America gas company. Consequently, it has been divesting international assets and using the proceeds to lessen its float. In the third quarter, shares outstanding dropped 3% to 432 million.
10 Best Cheapest Stocks For 2014: Allos Therapeutics Inc.(ALTH)
Allos Therapeutics, Inc., a biopharmaceutical company, engages in the development and commercialization of anti-cancer therapeutics. It focuses on the development and commercialization of FOLOTYN (pralatrexate injection), a folate analogue metabolic inhibitor. The company?s FOLOTYN is approved in the U.S. for the treatment of patients with relapsed or refractory peripheral T-cell lymphoma (PTCL). It is also developing FOLOTYN in other hematologic malignancies. The company has a strategic collaboration agreement with Mundipharma International Corporation Limited (Mundipharma) to co-develop FOLOTYN. Allos Therapeutics has full commercialization rights for FOLOTYN in the United States and Canada; and Mundipharma have exclusive rights to commercialize FOLOTYN in all other countries. Allos Therapeutics and Mundipharma are seeking regulatory approval to market FOLOTYN in the European Union and other geographies for the treatment of patients with relapsed or refractory PTCL; and are developing FOLOTYN in other potential indications. The company was formerly known as HemoTech Sciences, Inc. and changed its name to Allos Therapeutics, Inc. in October 1994. Allos Therapeutics, Inc. was founded in 1992 and is headquartered in Westminster, Colorado.
10 Best Cheapest Stocks For 2014: Monster Uranium Corp(MU.V)
Monster Uranium Corp. engages in the acquisition, exploration, and development of natural resource properties. It holds a 50% interest in the Broken-Hill Leo property that comprises 53 mineral claims in the Kamloops mining division of British Columbia. The company was formerly known as VMX Resources Inc. and changed its name to Monster Uranium Corp. in September 2007. Monster Uranium Corp. was founded in 1986 and is headquartered in Vancouver, Canada.
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