Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.
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 Kirkland's (Nasdaq: KIRK ) , whose recent revenue and earnings are plotted below.
Top 10 Small Cap Stocks To Watch Right Now: Barclays PLC(BCS)
Barclays PLC provides various financial products and services in Europe, the United States, Africa, and Asia. It offers retail and commercial banking, credit cards, investment banking, wealth management, and investment management services. The company?s products include current account and savings products, Woolwich branded mortgages, unsecured loans, protection products, general insurance, credit cards, Sharia-compliant products, installment finance and commercial property finance, commercial loans, and personal loans. It also offers money transmission, international and private banking, investment management, fiduciary, and brokerage services, as well as payment solutions and mobile banking services. In addition, the company provides fixed income, currency and commodities, foreign exchange, emerging markets, money markets, and credit services; equities, which include cash and equity derivatives and prime services; investment banking products and services that comprise fi nancial advisory, and equity and debt underwriting; and advisory services. It serves individual, commercial, corporate, institutional, retail, and mass affluent customers. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1896 and is headquartered in London, the United Kingdom.
Advisors' Opinion:- [By Alanna Petroff]
The police linked the theft at Barclays (BCS) to another attempt to steal money from a Santander (SAN) branch in London, which led to the arrest of 12 men last week.
- [By WALLSTCHEATSHEET]
Barclays provides essential financial services to companies and consumer worldwide, and the company is set to announce some positive changes during their second quarter earnings call on Tuesday. The stock has remained stagnant for most of the last several months. Over the last four quarters, investors have had mixed feelings about the company, as earnings and revenues have been mixed. Relative to its peers and sector, Barclays has been a year-to-date performance leader. WAIT AND SEE what Barclays does this coming quarter.
- [By David O��ara]
LONDON -- New management at Barclays (LSE: BARC ) (NYSE: BCS ) is determined to transform the culture and practices at the bank. Unfortunately for shareholders, this posturing seems to be deflecting the market's attention from just how successful the underlying business is. This is good for contrarian investors like me. The negative sentiment has depressed Barclays' share price, presenting the opportunity to continue increasing my stake.
- [By Tony Reading]
LONDON --�Question 1: What was the third region, along with the U.K. and U.S., which�Barclays'� (LSE: BARC ) (NYSE: BCS ) CEO Antony Jenkins identified as the focus for investment in his recent strategic review?
Top Diversified Bank Stocks To Invest In Right Now: Masco Corporation (MAS)
Masco Corporation engages in the manufacture, distribution, and installation of home improvement and building products primarily in North America and Europe. The company operates through five segments: Cabinets and Related Products, Plumbing Products, Installation and Other Services, Decorative Architectural Products, and Other Specialty Products. The Cabinets and Related Products segment manufactures and sells stock and semi-custom assembled, and ready-to-assemble cabinetry for kitchen, bath, storage, home office, and home entertainment applications, as well as kitchen countertops, and integrated bathroom vanity and countertop solutions. The Plumbing Products segment offers single-handle and double-handle faucets, showerheads, handheld showers, valves, and toilets; tub and shower systems, bath and shower enclosure units, shower trays, and laundry tubs, as well as spas; and brass and copper plumbing system components, and other plumbing specialties. The Installation and Ot her Services segment sells installed building products, such as gutters, after-paint products, fireplaces, and garage doors, as well as insulation and insulation accessories, and roofing and other products. The Decorative Architectural Products segment produces architectural coatings, including paints, primers, specialty paint products, stains, and waterproofing products; and cabinet, door, window, and other hardware products. The Other Specialty Products segment manufactures and sells vinyl, fiberglass, and aluminum windows and patio doors; and manual and electric staple gun tackers, staples, and other fastening tools. The company offers its products to the home improvement and new home construction markets through mass merchandisers, hardware stores, home centers, homebuilders, distributors, and other outlets for consumers and contractors, as well as directly to the consumers. Masco Corporation was founded in 1929 and is headquartered in Taylor, Michigan.
Advisors' Opinion:- [By Sue Chang , Saumya Vaishampayan]
Masco Corp. (MAS) shares slid 4.4%. The stock�� rating was lowered to underweight from hold at KeyCorp, according to Analyst Ratings Network.
- [By John Divine]
Finally, Masco (NYSE: MAS ) shares fell 6.1%. Masco, as a building materials supplier, faces the exact same dilemma as PulteGroup: its business outlook has materially declined in just a few days, as looming higher interest rates spell tougher times ahead for real estate. The stock has fallen more than 11% this week alone, with 9% of that decline coming in just the last two days.
Top Diversified Bank Stocks To Invest In Right Now: Kilroy Realty Corp (KRC)
Kilroy Realty Corporation, incorporated on September 13, 1996, is a self-administered real estate investment trust (REIT). The Company focuses on office and industrial submarkets along the West Coast. The Company owns, develops, acquires and manages real estate assets, consisting primarily of Class A real estate properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and greater Seattle. As of December 31, 2011, the Company�� portfolio consisted of 104 office buildings (the Office Properties) and 39 industrial buildings (the Industrial Properties). The Company owns its interests in all of its Office Properties and Industrial Properties through the Kilroy Realty, L.P. (the Operating Partnership) and Kilroy Realty Finance Partnership, L.P. (the Finance Partnership). In March 2012, the Company purchased Menlo Corporate Center in Menlo Park, California. In June 2012, the Company purchased two office properties in the Lake Union submarket of Seattle. In January 2013, the Company purchsed Westlake Terry, a two building 320,399 square-foot office property. In September 2013, the Company announced it has completed the purchase of a 13.8 acre Class A office campus in the coastal Del Mar sub-market of San Diego. Effective September 19, 2013, Kilroy Realty Corp acquired The Heights, a owner and operator of an office campus. In January 2014, Kilroy Realty Corp completed the disposition of 13 San Diego office properties in two tranches. In January 2014, Kilroy Realty Corp acquired from The Academy of Motion Pictures Arts and Sciences an approximate four-acre parcel near the intersection of Sunset Boulevard and Vine Street in Hollywood.
On January 28, 2011, the Company acquired one building in 250 Brannan Street, San Francisco, CA. On April 21, 2011, the Company acquired four buildings in 10210, 10220 and 10230 NE Points Drive; 3933 Lake Washington Boulevard NE, Kirkland, WA. On May 12, 2011, the Company acquired one building in 10770 Water! idge Circle, San Diego, CA. On June 3, 2011, the Company acquired one building in 601 108th Avenue N.E., Bellevue, WA. On June 9, 2011, the Company acquired one building in 4040 Civic Center Drive, San Rafael, CA. On September 15, 2011, the Company acquired one building in 201 Third Street, San Francisco, CA. On November 15, 2011, the Company acquired one building in 301 Brannan Street, San Francisco, CA. On December 15, 2011, the Company acquired one building in 370 Third Street, San Francisco, CA. In December 2011, it commenced redevelopment at one of its acquired properties in San Francisco. On January 30, 2012, the Company sold 15004 Innovation Drive, San Diego, CA and 10243 Genetic Center Drive, San Diego, CA. In September 2011, the Company disposed of its interest in 10350 Barnes Canyon and 10120 Pacific Heights Drive, San Diego, CA. In December 2011, the Company disposed of interest in 2031 E. Mariposa Avenue, Los Angeles, CA.
The Company conducts substantially all of its operations through the Operating Partnership of which as of December 31, 2011, it owned a 97.2% general partnership interest. Kilroy Realty Finance, Inc., a wholly owned subsidiary of the Company, is the sole general partner of the Finance Partnership. The Company conducts substantially all of its development activities through Kilroy Services, LLC (KSLLC), which is a wholly owned subsidiary of the Operating Partnership. Its wholly owned subsidiaries include Kilroy Realty TRS, Inc., Kilroy Realty Management, L.P., Kilroy RB, LLC, Kilroy RB II, LLC, Kilroy Realty Northside Drive, LLC and Kilroy Realty 303, LLC. As of December 31, 2011, the Company�� tenants included Intuit, Inc., Bridgepoint Education, Inc., Delta Dental of California, AMN Healthcare, Inc., Hewlett-Packard Company, Fish & Richardson P.C., Scripps Health and Epson America, Inc.
Advisors' Opinion:- [By Rich Duprey]
Real estate investment trust�Kilroy Realty� (NYSE: KRC ) �announced yesterday�its second-quarter dividend of $0.35 per share, the same rate it's paid since 2009.
- [By Ken McGaha]
The four REITS I reviewed are Kilroy Realty Corp. (KRC), Kimco Realty Corp. (KIM), Eastgroup Properties (EGP) and Federal Realty Investment Trust (FRT).
Top Diversified Bank Stocks To Invest In Right Now: STARWOOD PROPERTY TRUST INC.(STWD)
Starwood Property Trust, Inc., a real estate investment trust, primarily focuses on originating, investing in, financing, and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments. It also focuses to invest in commercial properties subject to net leases, residential mortgage loans, and residential mortgage-backed securities. SPT Management, LLC serves as the manager of Starwood Property Trust, Inc. The company qualifies as a real estate investment trust for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust was founded in 2009 and is headquartered in Greenwich, Connecticut.
Advisors' Opinion:- [By Amanda Alix]
Other companies are currently mulling single-family REIT IPOs, too. Colony recently announced�that it plans to spin off its Colony American Homes, which owns over 9,500 homes with average monthly rents of $1,277. Barry Sternlicht, CEO of commercial mortgage investment REIT Starwood Property Trust (NYSE: STWD ) has also said that he is seriously considering�spinning off his company's real estate holdings into a single-family REIT within the next few months.
Top Diversified Bank Stocks To Invest In Right Now: Pinnacle Foods Inc (PF)
Pinnacle Foods Inc., incorporated on July 28, 2003, is a manufacturer, marketer and distributor of branded food products in North America. The Company operates in three segments: the Birds Eye Frozen Division, the Duncan Hines Grocery Division and the Specialty Foods Division. The Birds Eye Frozen Division and the Duncan Hines Grocery Division, which collectively represent its North America Retail operations, include the brands. Its brand portfolio enjoys household penetration in the United States, where its products can be found in approximately 85% of U.S. households. Its products are sold through supermarkets, grocery wholesalers and distributors, mass merchandisers, super centers, convenience stores, dollar stores, drug stores and warehouse clubs in the United States and Canada, as well as in military channels and foodservice locations. On June 24, 2011, the Company completed the sale of its Watsonville, California facility which had been recorded as an asset held for sale.
Birds Eye Frozen Division
The Company�� Birds Eye Frozen Division includes its steamed and non-steamed product offerings, with a 27.0% market share, making Birds Eye the recognized frozen vegetables brand in the United States. Birds Eye was the Company to capture a nationwide market share with a product that enables consumers to conveniently steam vegetables in microwaveable packaging.
Duncan Hines Grocery Division
Duncan Hines is the division�� brand and includes cake mixes, ready-to-serve frostings, brownie mixes, muffin mixes, and cookie mixes. During the fiscal year ended September 23, 2012, the Company added two additional items to the line. In February 2012, the Company introduced a line of frosting products, Duncan Hines Frosting Creations, which uses a patent pending frosting system to allow consumers to customize their frosting into one of 12 different flavors. The Company also offers a complete line of shelf-stable pickle products that we market and distribute n! ationally, primarily under the Vlasic brand, and regionally under the Milwaukee�� and Wiejske Wyroby brands. In 2012, the Company introduced Vlasic Farmers Garden, artisan-quality pickle line.
Specialty Foods Division
The Company�� snack products primarily consist of Tim�� Cascade, Snyder of Berlin and Husman��. These direct store delivery brands have local awareness and hold market share positions in their regional markets. The Company also manufactures and distributes certain products, mainly in the frozen breakfast, canned meat, and pie and pastry fruit filling categories, through food service channels. The Company also manufactures and distributes certain private label products in the canned meat, shelf-stable pickles and frozen seafood. As part of its ongoing strategic focus over the last several years, the Company has deemphasized the food service and private label businesses for the benefit of its higher margin branded food products.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top Headline
Hillshire Brands Co (NYSE: HSH) announced its plans to buy Pinnacle Foods (NYSE: PF) for around $6.6 billion including debt. Hillshire will offer $18.00 in cash and 0.50 shares of its common stock for each Pinnacle share. - [By WWW.DAILYFINANCE.COM]
Paul Sakuma/AP NEW YORK -- Hillshire Brands says it will hold separate talks with Pilgrim's Pride and Tyson Foods, as the two meat processing heavyweights engage in a bidding war for the maker of Jimmy Dean sausages and Ball Park hot dogs. The announcement by Hillshire (HSH) comes a day after Pilgrim's Pride raised its bid to $55 a share, or $6.8 billion, from $45 a share. That tops Tyson's offer of $50 a share, or $6.2 billion, made last week. Those values are based on Hillshire's 123 million shares outstanding. Pilgrim's Pride puts the total value of its new bid at $7.7 billion. Tyson Foods values its proposal at $6.8 billion, including debt. The takeover bids by Pilgrim's Pride (PPC) and Tyson Foods (TSN) are being driven by the desirability of brand-name, convenience products like Jimmy Dean breakfast sandwiches. Those types of products are more profitable than fresh meat, such as chicken breasts, where there isn't as much wiggle room to pad prices. While Pilgrim's Pride and Tyson both sell such products, their businesses have been more focused on supplying supermarkets and restaurant chains. Both offers are contingent on Hillshire abandoning its plan to acquire Pinnacle Foods (PF), which makes Birds Eye frozen vegetables and Wish-Bone salad dressings. Some investors had questioned the wisdom of that deal, given the outdated image of some of Pinnacle's brands and the differences in the two companies' product portfolios. In its statement issued Tuesday, Hillshire noted that it can't just scrap its deal with Pinnacle. But a term in Hillshire's deal with Pinnacle allows it to consider alternative proposals that would be superior for stockholders. Pilgrim's Pride has said it would pay the $163 million breakup fee to call off the deal between Hillshire and Pinnacle. Hillshire, based in Chicago, had been trying to diversify its own portfolio by moving into other areas of the supermarket with the $4.23 billion acquisition of Pinnacle. Based in Greeley,
- [By WWW.DAILYFINANCE.COM]
Joe Raedle/Getty Images NEW YORK -- Tyson Foods (TSN) has won a bidding war to gobble up Hillshire Brands (HSH), the maker of Jimmy Dean sausages and Ball Park hot dogs. Tyson had been vying with rival poultry producer Pilgrim's Pride for Hillshire, which wrapped up its bidding process Sunday. Tyson ended up raising its offer to $63 a share. It had previously offered $50 a share, after which Pilgrim's Pride (PPC) raised its bid to $55 a share. Pilgrim's Pride, which is owned by Brazilian meat giant JBS, said Monday that it is withdrawing its offer. Still, the deal isn't sealed yet. It is contingent on the termination of Hillshire's offer to acquire Pinnacle Foods (PF), which makes Birds Eye frozen vegetables and Wish-Bone salad dressings. Pinnacle could choose to cut bait and walk away with $163 million breakup fee, or force the deal to a vote by Hillshire shareholders. A Pinnacle representative didn't immediately return a call for comment. In a conference call with reporters, Tyson CEO Donnie Smith said he was confident the $63 offer would end up being worthwhile for Tyson shareholders, despite how high the price went. "Great brands like Jimmy Dean and Ball Park just don't become available very often," Smith said. Hillshire's stock closed at $36.95 on May 9, the day before the company announced the Pinnacle deal. Tyson, like Pilgrim's Pride, has been looking to boost its presence in brand-name, prepared foods like Jimmy Dean breakfast sandwiches. Those types of products are more profitable than fresh meat, such as chicken breasts, where there isn't as much wiggle room to pad prices. While Tyson and Pilgrim's Pride already sell some brand-name products, their businesses have been more focused on supplying supermarkets and restaurant chains. In particular, Tyson said it was drawn by Hillshire's stable of breakfast foods, which would better position it in the fast-growing category. Tyson also noted the potential for cost savings by combining suppl
- [By WWW.DAILYFINANCE.COM]
Toby Talbot/AP NEW YORK -- Hillshire Brands is at the center of a barnyard brawl. Tyson Foods, the largest U.S. meat processor, has made a $6.2 billion offer for the maker Jimmy Dean sausages and Ball Park hot dogs, topping a bid made two days earlier by rival poultry producer Pilgrim's Pride. Based in Greeley, Colorado, Pilgrim's Pride is owned by Brazilian meat giant JBS. The takeover bids for Hillshire Brands (HSH) by the two major meat processors are being driven by the desirability of brand-name processed products like Jimmy Dean breakfast sandwiches. The convenience foods are more profitable than fresh meat, such as chicken breasts, where there isn't as much wiggle room to pad prices. Selling more types of products also would give the companies a buffer from volatile price swings of fresh meat. When beef prices rise and shoppers turn to other meats, the companies can sell more chicken or bacon, for example. While both Tyson (TSN) and Pilgrim's (PPC) sell some prepared products like frozen fried chicken pieces, their main business has been as suppliers of fresh meat for supermarkets and restaurant chains. Both offers are contingent on Hillshire abandoning its plan to acquire Pinnacle Foods (PF), which makes Birds Eye frozen vegetables and Wish-Bone salad dressings. Hillshire had been trying to diversify its own portfolio by moving into other areas of the supermarket with the $4.23 billion acquisition. But some investors questioned whether combining with Pinnacle made sense, given the sharp differences in product categories and the outdated image of some Pinnacle brands, such as Hungry Man frozen dinners. Hillshire said earlier it strongly believes in its deal with Pinnacle Foods but would review Pilgrim's offer. In its latest statement Thursday, the Chicago-based company said it would review Tyson's offer as well and made no mention of its Pinnacle deal. Pilgrim's Pride said it is considering its options and will "update the markets in due cou
Top Diversified Bank Stocks To Invest In Right Now: TriQuint Semiconductor Inc.(TQNT)
TriQuint Semiconductor, Inc. provides radio frequency (RF) solutions and technology for communications, defense, and aerospace companies worldwide. The company designs, develops, and manufactures RF solutions with gallium arsenide (GaAs), gallium nitride, bipolar high electron mobility transistor, surface acoustic wave (SAW), temperature compensated surface acoustic wave, bulk acoustic wave (BAW), copper flip, and wafer level packaging technologies. The company offers an array of filtering, switching, and amplification products for RF, microwave, and millimeter-wave applications. It sells electronic components for mobile phones, including transmit modules, RF filters, power amplifiers and power amplifier modules, duplexers, switches, other RF devices, and integrated products to mobile device manufacturers. The company also offers signal amplification and filtering products, including a portfolio of GaAs microwave monolithic integrated circuits and transistors, and SAW and BAW filter components that support the transfer of voice, data, and video across wireless or wired infrastructure. Its network products comprise millimeter wave power amplifiers, frequency converters, and voltage controlled oscillators. In addition, the company provides defense and aerospace devices, including packaged products, die-level integrated circuits (ICs), microwave monolithic ICs, and multi-chip modules to military contractors serving the U.S. government for use in various communications and phased array radar programs, such as ship-based, airborne, and battlefield systems, as well as sat-com, electronic warfare, and guidance applications. Further, TriQuint Semiconductor, Inc. offers foundry services. The company sells its products through independent manufacturers? representatives, independent distributors, and direct sales staff. TriQuint Semiconductor, Inc. was founded in 1981 and is headquartered in Hillsboro, Oregon.
Advisors' Opinion:- [By Alex Planes]
According to Credit Suisse, LTE handset volumes will double to 537 million units this year, and will grow by another 33% per year for the next several years, which is clearly a monster opportunity for Skyworks -- and for its rivals TriQuint (NASDAQ: TQNT ) and RF Micro Devices (NASDAQ: RFMD ) . These competitors recently agreed on a merger to secure more business from mobile top dogs Apple and Samsung. Apple and Samsung together accounted for nearly half of Skyworks' revenue in fiscal 2013, so this is clearly a threat that could diminish its otherwise-sterling growth prospects.
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