Wednesday, June 5, 2013

Best Low Price Companies To Own For 2014

Kinder Morgan (NYSE: KMI  ) has returned more than 9% so far this year, but as we all know, past performances are not indicative of future returns. That's why�I created a�premium report on Kinder Morgan -- to help investors examine its future and decide if the company is still right for their portfolios.

The following is an excerpt from the report, which focuses on the main risks facing the company. It's just a sample of one section, but we hope you enjoy.

Risks

Opposition to pipeline construction�and expansion may affect Kinder Morgan's growth. The company is already experiencing this with its Trans Mountain line. The 300,000 barrel per day pipeline connects Alberta's oil sands to British Columbia. KMP is currently trying to more than double capacity on the line, which is frequently oversubscribed, but it is running into a bit of opposition from environmental groups and local citizenry. One of North Vancouver's First Nation tribes has already signed a legal declaration banning oil sands pipelines on its land. Kinder Morgan has received long-term customer commitments to bring contracted capacity up to 700,000 barrels per day, targeting an eventual capacity of 890,000 bpd. Realistically, the company will probably have to spend some time in court if the expansion is to be realized. Commodity risk�is a concern as well. Kinder Morgan's CO2 segment includes oil and natural gas liquids production. Though operations are going well -- the partnership is setting NGL production records -- prices have plummeted over the past year and it is impacting earnings in this segment. Additionally, though Kinder Morgan doesn't take possession of its natural gas, and therefore isn't on the hook when prices drop, the low price environment means that producers have been pulling rigs out of dry gas plays in favor of producing other commodities like oil and NGLs. As a result, Kinder Morgan systems devoted to dry gas, like KinderHawk in the Haynesville Shale, have experienced lower volumes, and subsequently, lower revenue. Declining demand�for refined products, coal, and steel could cause problems. Recently, Kinder Morgan has been able to buck the national trend of declining demand, as the partnership's refined products volumes increased slightly. But the Energy Information Administration is reporting a 1.2% decline in demand nationwide, so this is a segment that may have tough times ahead. Domestic demand for coal continues to fall, impacting the partnership's terminals segment. That business unit is also affected by soft demand for steel. If and when the economy rebounds, steel demand will likely rise as well. What will happen with domestic coal demand remains to be seen.

Looking for more guidance?
That was just a sample of our new premium report on Kinder Morgan. If you're weighing whether the company�is a�buy or sell, the report is an essential resource for investors seeking more information on the company. Not only that, but the report also comes with updated quarterly guidance and dives into upcoming catalysts on the horizon. To get started, simply�click here now.

Best Low Price Companies To Own For 2014: PICO Holdings Inc.(PICO)

PICO Holdings, Inc., together with its subsidiaries, engages in the water resource and water storage, real estate, insurance, and agribusiness businesses. Its water resource and water storage business acquires and develops water resources and water storage operations in the southwestern United States. The company?s real estate business acquires and develops partially-developed and finished residential housing lots in selected markets primarily in California. It also owns, leases, and sells properties in northern Nevada, which include sub?surface rights, such as mineral rights, water rights, and geothermal rights. As of December 31, 2010, this business owned or controlled a total of 490 finished lots, which included 21 completed homes and 10 partially completed homes; and 4,711 potential lots in various stages of entitlement. It also owned approximately 440,000 acres of land in northern Nevada. The company?s insurance business handles and resolves claims on expired polic ies comprising medical professional liability, property and casualty, and workers? compensation insurance policies. PICO Holdings, Inc. also involves in cash and fixed-income securities business, as well as acquires businesses and interests in businesses through the acquisition of private companies and the purchase of shares in public companies. The company was founded in 1981 and is based in La Jolla, California.

Best Low Price Companies To Own For 2014: Astivita Renewables Limited(AIR.AX)

AstiVita Renewables Limited, through its subsidiaries, imports, warehouses, and distributes bathroom, kitchen, and solar products for retailers, plumbing merchants, hardware suppliers, and licensed dealers in Australia and New Zealand. It offers tap ware, bath spouts, shower heads, bathroom vanities, baths and spas, basins, shower cubicles, bathroom accessories, mirrors and cabinets, bathroom toilets, plugs and wastes, kitchen sinks, kitchen appliances, and solar hot water and home solar electricity products. AstiVita Renewables Limited was founded in 2004 and is based in Rocklea, Australia.

Top 10 Recreation Stocks To Own For 2014: Pacific Star Network Ltd(PNW.AX)

Pacific Star Network Limited operates as a radio broadcasting company in Australia. It holds two Melbourne AM commercial broadcasting licenses and broadcasts 24/7 on MTR 1377, a talk radio station that broadcasts across the Melbourne metropolitan area, and the Mornington and Bellarine Peninsulas; and 1116 SEN Sports Entertainment Network, which broadcasts sports radio in the Melbourne metropolitan area. The company was formerly known as Data & Commerce Ltd and changed its name to Pacific Star Network Limited in August 2004. Pacific Star Network Limited is based in Richmond, Australia.

Best Low Price Companies To Own For 2014: Good Times Restaurants Inc.(GTIM)

Good Times Restaurants, Inc., through its subsidiary, Good Times Drive Thru Inc., engages in developing, owning, operating, and franchising hamburger-oriented drive-through restaurants. The company operates restaurants under the Good Times Burgers & Frozen Custard name primarily in Colorado. It also has franchised restaurants in North Dakota and Wyoming. As of September 30, 2011, the company operated 25 company-owned and joint venture restaurants located in Colorado; and franchises, including 16 located in Colorado, 2 in Wyoming, and 2 in North Dakota. Good Times Restaurants, Inc. was founded in 1987 and is based in Golden, Colorado.

Best Low Price Companies To Own For 2014: First Busey Corporation(BUSE)

First Busey Corporation operates as the bank holding company for Busey Bank that provides various retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. It accepts noninterest-bearing demand, interest-bearing transaction, savings, money market, and time deposits. The company?s loan portfolio includes commercial, agricultural, and real estate loans; individual, consumer, installment, first mortgage, and second mortgage loans; and commercial real estate, residential real estate, and consumer loans. It also provides money transfer, safe deposit, fiduciary, automated banking, and automated fund transfer services. In addition, the company provides asset management, brokerage, and fiduciary services, including financial planning, investment management, retirement planning, brokerage, and trust and estate advisory services to individuals; investment management, business succession planning, an d employee retirement plan services to businesses; and investment management, investment strategy consulting, and fiduciary services to foundations. Further, it offers pay processing solutions, such as walk-in payments processing for payments delivered by customers to retail pay agents; online bill payment solutions for payments made by customers on a billing company?s Website; customer service payments for payments accepted over the telephone; direct debit services; electronic concentration of payments delivered by the automated clearing house network; money management software and credit card networks; and lockbox remittance processing of payments delivered by mail. The company has 33 locations in Illinois, 7 locations in southwest Florida, and 1 location in Indianapolis, Indiana. First Busey Corporation was founded in 1868 and is headquartered in Champaign, Illinois.

Advisors' Opinion:
  • [By Lowell]

    I think small regional banks are set to make a comeback, and in this space I like Illinois-based First Busey Corp. (NASDAQ: BUSE). The bank has had its share of problems, as Illinois was one of the largest hubs of banking problems in the nation during the financial fallout. And BUSE borrowed $100 million TARP funds, which it hasn’t yet paid back in total, but it is making great progress toward that goal.

    The company beat estimates in the last four fiscal quarters, and institutions are ramping up their ownership. Additionally, this cheap stock pays a nice little dividend of almost 3.3%. As the regional baking sector recovers, I think BUSE will be a leader.

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