Wednesday, May 27, 2015

Best Performing Companies To Own In Right Now

No two ways about it: Yum! Brands (NYSE: YUM  ) stock has disappointed investors mightily this past year. The owner of perhaps the world's best-known pizza brand -- Pizza Hut -- Yum! shares have gained barely 8% in value this year.

That's less than half the rise of the broader S&P 500 index of companies. It's four times less than the 37% gain seen at Papa John's (NASDAQ: PZZA  ) , and less than a tenth of the gains at skyrocketing Domino's Pizza (NYSE: DPZ  ) . But why is Pizza Hut's owner underperforming, and why might its laggard performance continue for longer than investors expect?

Three reasons.

Pizza Hut grows too slowly...
According to analysts who track the prospects of these businesses, Yum! Brands -- the owner of not only�Pizza Hut but also KFC and Taco Bell -- has the worst prospects to grow its businesses over the next five years of any of the three pizza chains named so far.

...and it's been growing slowly for quite some time
Worse, this is no recent phenomenon, or easily reversed. It's the continuation of a trend of substandard profits growth at Yum! that's gone on for quite some time. Despite being diversified across three separate kinds of fare, Yum!'s performed poorly for five years straight, relative to its pizza-prepping peers:

Best High Tech Companies To Own In Right Now: Arcos Dorados Holdings Inc (ARCO)

Arcos Dorados Holdings Inc., incorporated on December 9, 2010, is a McDonald�� franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald��-branded restaurants, which represented 6.7% of McDonald�� total franchised restaurants globally. It operates McDonald��-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2010, of its 1,755 McDonald��-branded restaurants in the territories, 1,292 (or 74%) were Company-operated restaurants and 463 (or 26%) were franchised restaurants. It generates revenues from two sources: sales by Company-operated restaurants and revenues from franchised restaurants, which consist of rental income, which is based on the greater of a flat fee or a percentage of sales reported by franchised restaurants. As of December 31, 2010, it owned the land for 510 of its restaurants (totaling approximately 1.2 million square meters) and the buildings for all but 12 of its restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico and the United States Virgin Islands of St. Croix and St. Thomas; North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and South Latin America division (SLAD), consisting of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela. As of December 31, 2010, 35.1% of its restaurants were located in Brazil, 29.7% in SLAD, 27.1% in NOLAD and 8.1% in the Caribbean division. The Company conducts its business through its indirect, wholly owned subsidiary Arcos Dorados B.V.

Company-Operated and Franchised Restaurants

The Company operates its McDonald��-branded restaurants under two basic structures: Company-operated restaurants operated by the Company and franchised restaurants operated by franchisees. Under both operating alternatives the real estate location may ! either be owned or leased by the Company. It owns, fully manages and operates the Company-operated restaurants and retains any operating profits generated by such restaurants, after paying operating expenses and the franchise and other fees owed to McDonald�� under the Master Franchise Agreements (MFAs). In Company-operated restaurants, it assumes the capital expenditures for the building and equipment of the restaurant and, if it owns the real estate location, for the land as well. Under its franchise arrangements, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and decor of their restaurants, and by reinvesting in the business over time. It is required by the MFAs to own the real estate or to secure long-term leases for franchised restaurant sites. It subsequently leases or subleases the property to franchisees.

In exchange for the lease and services, franchisees pay a monthly rent to the Company, based on the greater of a fixed rent or a certain percentage of gross sales. In addition to this monthly rent, it collects the monthly continuing franchise fee, which generally is 5% of the United States dollar equivalent of the restaurant�� gross sales, and pays these fees to McDonald�� pursuant to the MFAs. However, if a franchisee fails to pay its monthly continuing franchise fee, it remains liable for payment in full of these fees to McDonald��. As of December 31, 2010, it was engaged in several joint ventures, which collectively owned 24 restaurants, in Argentina, Chile and Colombia.

Restaurant Categories

The Company classifies its restaurants into one of four categories: freestanding, food court, in-store and mall stores. Freestanding restaurants are the type of restaurant, which have ample indoor seating and include a drive-through area. Food court restaurants are located in malls and consist of a front counter and kitchen and do not have their own seating area. In-store restaurants are part ! of a larg! er building and resemble freestanding restaurants, except for the lack of a drive-through area. Mall stores are located in malls like food court restaurants, but have their own seating areas. As of December 31, 2010, 808 (or 46.2%) of its restaurants were freestanding, 359 (or 20.5%) were food court, 265 (or 15.1%) were in-stores and 319 (or 18.2%) were mall stores. In addition, it has four non-traditional stores, such as food carts.

Reimaging

As of December 31, 2010, the Company had completed the reimaging of 308 of 1,569 restaurants. Many of the reimaging projects include the addition of McCafe locations to the restaurant. It has developed system-wide guidelines for the interior and exterior design of reimaged restaurants.

McCafe Locations and Dessert Centers

McCafe locations are stylish, separate areas within restaurants where customers can purchase a range of customizable beverages, including lattes, cappuccinos, mochas, hot and iced premium coffees and hot chocolate. As of December 31, 2010, there were 267 McCafe locations in the Territories, of which 12% were operated by franchisees. Argentina, with 71 locations, has McCafe locations, followed by Brazil, with 67 locations. In addition to McCafe locations, it has Dessert Centers. Dessert Centers operate from existing restaurants, but depend on them for supplies and operational support. As of December 31, 2010, there were 1,306 Dessert Centers in the Territories.

Product Offerings

The Company�� menus feature three tiers of products: affordable entry-level options, such as its Big Pleasures, Small Prices or Combo del Dia (Daily Extra Value Meal) offerings, core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products, which are marketed through common platforms rather than as individual items. These platforms can be based on the ty! pe of pro! ducts, such as beef, chicken, salads or desserts, or on the type of customer targeted, such as the children�� menu.

Advisors' Opinion:
  • [By Geoffrey Seiler]

    Analyst John Ivankoe took Arcos Dorados (ARCO) from neutral to overweight and increased his target from $13 to $14. It is the first time the analyst has had a positive view on the stock since it IPO'd.

Best Performing Companies To Own In Right Now: Quanta Resources Inc (QR)

Quanta Resources Inc. (Quanta), formerly T S Telecom Ltd., is a Canada-based mineral exploration company. The Company focuses on acquiring, exploring and developing of mineral properties. The Company has been seeking and reviewing exploration opportunities in Canada and other parts of the world. The Company's property included White Pelican Property. The White Pelican Property lies in the Cariboo Mining Division and consists of 13 mining claims totaling approximately 5,994 hectares. As of March 31, 2012, the Company had no revenues. Advisors' Opinion:
  • [By Chuck Carnevale]

    Next, I run graphs on liquidity ratios and additional data on various valuation ratios to include price to book value (pb), price to cash flow (pcfl), price to free cash flow (pfcfl) and others that can be seen as options on the navigation bar to the left of the sample graph which only plots the current ratio (cr), a quick ratio (qr) and for those diehards concerned with volatility [size=11.0pt;line-height:115%; font-family:"Calibri","sans-serif";mso-ascii-theme-font:minor-latin;mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin;mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman";mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA">��/p>

Best Performing Companies To Own In Right Now: Medical Action Industries Inc.(MDCI)

Medical Action Industries Inc. develops, manufactures, markets, and supplies various disposable medical products primarily in the United States. It offers custom procedure trays that include orthopedic, cath lab/radiology, labor and delivery, cardiac, ophthalmology, tissue procurement, neurology, robotic, gynecological, vascular, urology, cosmetic/plastic surgery, anesthesia/pain, bariatric, and general/other trays; minor procedure kits and trays, such as central line dressing, suture removal, laceration, incision and drainage, general purpose instrument, wound dressing change, sharp debridement, venipuncture, ear and ulcer syringes, trach care, and irrigation trays, as well as razor and shave prep kits, piston syringes, and I.V. start kits; and operating room disposables and sterilization products comprising surgical marking pens, needle counters, light shields, convenience kits, surgical headwear and shoe covers, isolation gowns, instrument protection, eye-shields, sutur e boots, basin separators, reel cutters, patient aids, crutches, walkers, canes, patient slippers, O.R. basins, magnetic drapes, guide wire bowls, bowie dick test packs, vessel loops, anti-fog solutions, heat sealers, and tray liners. The company also provides patient bedside products consisting of wash basins, bedpans, pitchers and carafes, urinals, emesis basins, soap dishes, medicine and denture cups, tumblers, sitz baths, service trays, and perineal bottles; dressings and surgical sponges, which include burn dressings, sponge counting systems, elastic nets, and bandage rolls; containment systems for medical waste, such as waste solidifier and spill cleanup kits, and equipment dust and sterility maintenance covers; and laboratory products comprising petri dishes, containers, collectors, calculi strainers, and vials. It sells its products primarily to acute care facilities through a network of direct sales personnel. The company was founded in 1977 and is headquartered in Brentwood, New York.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another under-$10 health care player that's starting to move within range of triggering a major breakout trade is Medical Action Industries (MDCI), which develops, manufactures, markets and supplies a variety of disposable medical products. This stock has been on fire so far in 2013, with shares up sharply by 129%.

    If you take a look at the chart for Medical Action Industries, you'll notice that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $5.84 on the downside and $6.76 on the upside. Shares of MDCI are now starting to spike higher right off its 50-day moving average of $6.09 a share, and it's quickly moving within range of triggering a major breakout trade above the upper-end of its sideways trading chart pattern.

    Market players should now look for long-biased trades in MDCI if it manages to break out above its 200-day moving average at $6.67 a share and then once it takes out some more key overhead resistance levels at $6.76 to $7.13 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 98,989 shares. If that breakout hits soon, then MDCI will set up to re-test or possibly take out its next major overhead resistance levels at $9.50 to $10 a share.

    Traders can look to buy MDCI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels a $5.84 to $5.50 a share. One can also buy MDCI off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best Performing Companies To Own In Right Now: USG Corporation(USG)

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By Holly LaFon]

    Pimco managing director Mark Kiesel mentions Whirlpool (WHR), Weyerhaeuser (WY), USG (USG), Toll Brothers (TOLL) and KB Home (KBH) as good plays on housing:�

  • [By Seth Jayson]

    USG (NYSE: USG  ) reported earnings on April 24. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share.

Best Performing Companies To Own In Right Now: Flexpoint Sensor Systems Inc (FLXT)

Flexpoint Sensor Systems, Inc.(Flexpoint), incorporated on June 11, 1992, is a development stage company. The Company is principally engaged in designing, engineering and manufacturing bend sensor technology and products using its patented Bend Sensor technology. Flexpoint manufactures, and has jointly developed, six products that are being sold and supplied to customers. Flexpoint owns nine patents, including patents on specific devices that use the Bend Sensor. The Company works with various Tier 1 (major) automotive suppliers on a variety of products that are in various stages of development and implementation.

Bend Sensor Technology

Flexpoint owns the patent rights to the Company's Bend Sensor technology through Sensitron, Inc. (Sensitron), a wholly owned subsidiary of the Company. The Bend Sensor is a potentiometer bend sensor product consisting of a coated substrate, such as plastic, that changes electrical conductivity as it is bent in a consistent manner. Electronic systems can connect to this sensor and measure in detail the amount of bending or movement that occurs in a predictable manner. A potentiometer functions through the means of metal contacts swiping or rubbing across a resistive element. Flexpoin�� Bend Sensor potentiometer is a single layer with no mechanical assembly that makes it more reliable and smaller, and lighter in weight.

Automotive Products

Flexpoint has developed comfort seat for automobiles utilizing its patented Bend Sensortechnology and is working with Tier 1 suppliers on development of the seat and various seat related controls. Through a joint development arrangement with a Tier1supplier Flexpoint developed and delivered prototypes of the seat. Automobile manufacture has partnered with a Tier 1 supplier and is in the final stages of evaluating Flexpoint�� patented horn switch to replace their existing technology. The automobile manufacturer is also evaluating the use of the Bend Sensor as a switch to open rear! doors of SUV's and as a seat belt reminder (SBR). While working with various Tier 1 automotive suppliers the Company has developed and tested a SBR sensor that alerts the occupant of an automobile to fasten his/her seatbelt.

Flexpoint is working with multiple manufacturers to replace existing devices in the marketplace with a system superior in performance. Four separate and independent automotive suppliers and OEMs tested the Bend Sensor device for use in pedestrian impact detection device. The tests proved that the Bend Sensor device was able to detect impact with a human leg and in the event of an accident and trigger the desired safety response. Flexpoint has also developed a crash sensor, which is a series of sensors mounted in strategic places on the side and door panels of an automobile to detect an impact, as well as the speed, direction and force of the impact. This allows an onboard computer to deploy side air bags where needed. Using the same concept as the Company's automotive seat belt reminder (SBR), this device monitors cinema theater's paying customers and identifies available seats. Flexpoint has supplied a theater management firm with several prototype sensors, which have undergone extensive testing for this application.

As of December 31, 2012, Flexpoint developed and produced 20 prototype medical beds that assist in the management of bed sores. Using the Bend Sensor technology and accompanying electronics the bed is able to determine the position of the person in the bed and how they are moved. The Company has developed a vibration sensor, a rupture disc/bursting disc utilizing the Bend Sensor as the detection/alarm element of a rupture disc device, an infant bed cover using its patented sensors that is used to monitor infants in the prevention of sudden infant death syndrome (SIDS), toys and video gaming devices, and sports applications.

Advisors' Opinion:
  • [By CRWE]

    Today, FLXT has shed (-6.25%) down -0.0060 at $.0900 with 19,500 shares in play thus far (ref. google finance Delayed: 11:10AM EDT September 25, 2013).

    Flexpoint Sensor Systems, Inc. previously reported they expect to complete both Phase Two and Phase Three of development of the colonoscope application during the remainder of 2013. The company will receive milestone cash payments for each stage of the development process.

Best Performing Companies To Own In Right Now: Denison Mines Corp (DNN)

Denison Mines Corp. (Denison) is engaged in uranium exploration, development, mining and milling with uranium mining projects in both the United States and Canada and development projects in Canada, the United States, Zambia and Mongolia. Denison�� assets include an interest in two of the four licensed conventional uranium mills in North America, with its 100% interest of the White Mesa mill in Utah and its 22.5% interest of the McClean Lake mill in Saskatchewan. Denison also produces vanadium as a co-product from some of its mines in Colorado and Utah and recycles uranium-bearing waste materials, referred to as alternate feed materials, for the recovery of uranium, alone or in combination with other metals, at its White Mesa mill. In January 2014, the Company announced the closing of the acquisition of Rockgate by Denison Mines Corp. Advisors' Opinion:
  • [By The Energy Report]

    DS: It's certainly good news. Elimination of the non-resident ownership policy [NROP] will permit European Union-based companies to own a majority stake in an operating uranium mine. That opens the door for companies like Rio Tinto Plc (RIO) and AREVA SA (ARVCF) [AREVA:EPA] to push forward with development of existing deposits or to buy more uranium assets in Canada. Accordingly, it increases takeover potential for companies like Denison Mines Corp. (DNN).

  • [By John Udovich]

    Small cap nuclear fuel stock USEC Inc (NYSE: USU) is up some 300% this week���meaning its worth taking a closer look at the company along with the performance potential uranium or nuclear stock peers Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ).

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