It's been a tumultuous, Twitter-hacked, earnings-filled week, yet the market continues to chug higher. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.
Keep in mind that some companies�deserve�their current valuations. Take casino and hotel operator Las Vegas Sands (NYSE: LVS ) , for example, which is approaching a new 52-week high on the heels of strength in its Macau business. Targeting a broader class of Chinese citizens and tourists, Las Vegas Sands has supplanted Wynn Resorts�in growth and is putting itself atop the casino sector.
Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
Boring doesn't always mean "buy"
You may have heard me mention recently that boring industries can often make the most profitable industries. That is generally true, but it's not a rule! This is why packaging products maker Rock-Tenn (NYSE: RKT ) has found its way onto my "sell-now" radar.
Top Gas Utility Companies To Own In Right Now: Oremex Resources Inc. (ORM.V)
Oremex Silver Inc., a development stage company, engages in the exploration and development of mineral properties in Mexico. The company primarily holds interest in the Tejamen Silver property consisting of 22 exploration concessions covering approximately 1,672 hectares located northwest of the city of Durango, Mexico. It also holds interest in the San Lucas silver-lead-zinc property consisting of 18 mineral concessions covering approximately 925 hectares located north of the city of Durango, Mexico. The company was formerly known as Oremex Resources Inc. and changed its name to Oremex Silver Inc. in September 2011. Oremex Silver Inc. was founded in 1995 and is based in Toronto, Canada.
Top Gas Utility Companies To Own In Right Now: Virginia Mines Inc (VGQ.TO)
Virginia Mines Inc. engages in the acquisition, exploration, development, and exploitation of various mining exploration properties in Canada. The company primarily explores for gold and base metal deposits primarily in James Bay area, Quebec. It has a strategic alliance with Wemindji Exploration Inc. to carry out geological reconnaissance, sampling, and exploration work in middle north Quebec; and KGHM International Ltd. to carry out geological reconnaissance, sampling, and exploration work in northern Quebec. The company is headquartered in Quebec, Canada. As of March 31, 2006, Virginia Mines Inc. operates as a subsidiary of Goldcorp Inc.
Hot European Companies To Own For 2014: First Commonwealth Financial Corporation(FCF)
First Commonwealth Financial Corporation operates as the holding company for First Commonwealth Bank that provides consumer and commercial banking services to individuals and small and mid-sized businesses in central and western Pennsylvania. The company offers personal checking accounts, interest-earning checking accounts, savings accounts, health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, and IRA accounts. It also provides secured and unsecured installment loans, construction and mortgage loans, safe deposit facilities, credit lines with overdraft checking protection, and student loans, as well as Internet and telephone banking, and automated teller machine services. In addition, the company offers commercial banking services, including commercial lending, small and high-volume business checking accounts, on-line account management services, ACH origination, payroll direct deposi t, commercial cash management services, and repurchase agreements. Further, it provides various trust and asset management services, as well as a complement of auto, home, business, and term life insurance. Additionally, the company offers annuities, mutual funds, stock, and bond brokerage services through an arrangement with a broker-dealer and insurance brokers. It operates 115 community banking offices in western Pennsylvania and 2 loan production offices in downtown Pittsburgh and State College, Pennsylvania. The company was founded in 1982 and is headquartered in Indiana, Pennsylvania.
Advisors' Opinion:- [By Philip]
Shares First Commonwealth Financial Corp.(FCF) of Indiana, Pa., closed at $4.75 Friday, declining 31% year-to-date. Based on a consensus price target of $6.46, the shares have 36% upside potential.
Based on a quarterly payout of three cents, the shares have a dividend yield of 2.53%.
First Commonwealth had $5.7 billion in total assets as of Sept. 30, operating 112 First Commonwealth Bank offices in 15 counties in western and central Pennsylvania.
The company reported third-quarter earnings of $8.3 million, or 8 cents a share, increasing from $7.4 million, or 7 cents a share, during the second quarter, but declining from $10.6 million, or 11 cents a share, in the third quarter of 2010.
The year-over-year earnings decline reflected an 8% decline in net interest income to a tax-adjusted $48.8 million in the third quarter, as the company saw an 8% decline in its loan portfolio, "as the result of more disciplined underwriting guidelines concerning geography and size for commercial loans, the managing down of large credit relationships over $15 million," and weak loan demand.
The net interest margin declined to 3.81%, increasing from 3.76% the previous quarter, but declining from 3.90% a year earlier.
Earnings were also affected by a $7.0 million third-quarter provision for loan losses, which was down from $9.1 million the previous quarter, but up from $4.5 million a year earlier.
First Commonwealth's nonperforming assets ratio was 3.45%, increasing from 3.22% the previous quarter and 2.70% a year earlier, with one commercial credit relationship in Pennsylvania representing $32.8 million, or 17% of the company's $195.2 million in nonperforming assets.
The third-quarter net charge-off ratio was 1.00% and reserves covered 1.81% of total loans as of September 30.
Following First Commonwealth's earnings announcement, Sterne Agee analyst Mike Shafir reiterated his Buy rating on the shares, with a price target of $6.50, and said that "W! hile NPAs rose during the quarter, the company exhibited positive trends with a higher net interest margin, lower expenses, and a reduction in the pace of loan decline."
The shares trade for 11.3 times the consensus 2012 EPS estimate of 42 cents, and 0.8 times their Sept. 30 tangible book value of $5.77, according to SNL Financial.
Six out of nine analysts covering First Commonwealth rate the shares a buy, while the remaining analysts all have neutral ratings
Top Gas Utility Companies To Own In Right Now: Rainmaker Mining Corp (RMG.V)
Rainmaker Mining Corp., an exploration stage company, engages in the exploration, development, and exploitation of mineral and energy related resource properties primarily in Canada. It holds interests in 7 uranium claims covering an area of 21,291 hectares located along the southern margin of the Athabasca Basin, Saskatchewan; and 100% interest in the Pilot Harbour Property comprising 42 claims located in the Sault St. Marie Mining Division of Ontario. The company was formerly known as Thunder Sword Resources Inc. and changed its name to Rainmaker Mining Corp. on November 20, 2009. Rainmaker Mining Corp. was founded in 1979 and is based in Vancouver, Canada.
Top Gas Utility Companies To Own In Right Now: White Mountains Insurance Group Ltd.(WTM)
White Mountains Insurance Group, Ltd., through its subsidiaries, engages in the property and casualty insurance, and reinsurance businesses. The company?s OneBeacon segment offers professional liability products, marine insurance, collector cars and boats insurance, property and inland marine insurance, tuition reimbursement, and excess property and accident and health products, as well as property and casualty insurance coverages tailored to industry groups, such as technology, financial services, entertainment, sports and leisure industries, and government entities. Its White Mountains Re segment provides reinsurance coverage for property, accident and health, aviation and space, trade credit, marine, casualty, agriculture, and other exposures. White Mountains? Esurance segment writes personal auto insurance to customers online and through select online agents, as well as sells insurance online. The company offers its products and services primarily in the United State s, Europe, Canada, the Caribbean, Bermuda, Latin America, and Asia. White Mountains Insurance Group, Ltd. was founded in 1980 and is headquartered in Hamilton, Bermuda.
Top Gas Utility Companies To Own In Right Now: Luxottica(LUX.MI)
Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of house brand and designer lines of prescription frames and sunglasses; sports eyewear products; and men?s and women?s apparel, footwear, and accessories. This segment offers its products under house brands, such as Ray-Ban, Oakley, Arnette, ESS, K&L, Luxottica, Mosley Tribes, Oliver Peoples, Persol, Revo, Sferoflex, and Vogue; and licensed brands comprising Anne Klein, Brooks Brothers, Bvlgari, Burberry, Chanel, Chaps, Club Monaco, D&G, Dolce & Gabbana, DKNY, Donna Karan, Miu Miu, Polo Ralph Lauren, Paul Smith, Prada, Ralph Lauren, Ralph, Salvatore Ferragamo, Stella McCartney, Tiffany & Co., Tory Burch, Versace, and Versus. This se gment serves retailers of mid- to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, and duty-free shops, as well as independent optometrists and ophthalmologists. The Retail Distribution segment operates optical retail stores under the brand names of LensCrafters, Pearle Vision, Sears Optical, Target Optical, OPSM, Laubman & Pank, Budget Eyewear, and GMO; and sunglass and luxury retail stores under the brand names of Sunglass Hut, ILORI, Optical Shop of Aspen, Oliver Peoples, David Clulow, Bright Eyes, and Oakley O' Stores and Vaults. This segment operates approximately 7,100 optical and sun retail stores. Luxottica Group also operates E-commerce Web sites, including sunglasshut.com, oakley.com, and ray-ban.com. The company was founded in 1961 and is headquartered in Milan, Italy. As of January 31, 2012, Luxottica Group S.p.A. operates as a subsidiary of Delfin S.�r.l.
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