A classical example is that of Satyam Computer Services Ltd. After its debacle, the share prices of Satyam tumbled from over Rs 250 to Rs 10 within a day. Those who had bought the shares at lower prices might have made 10 times the returns on the stock.
This might not be the perfect example but there are so many well-managed large companies having a good product line and a dominant position in their respective industries and are trading at historically low prices. At times situations like these arise due to lack of interest in the company on part of the investors. More importantly, the share prices of many of these companies are beaten to such an extent that it appears as if they will cease their business activities from the very next day.
Is this because they fear the economy is not doing well, the interest rates are high, the product prices are low, the consumer demand is falling or concerns about how these companies will pay their debts?
These are genuine concerns but investors need to under-stand how long these problems would last and what will be the impact on the company or the sector if these issues are resolved.
5 Best High Dividend Stocks To Invest In 2015: MoneyGram International Inc (MGI)
MoneyGram International, Inc. (MoneyGram) incorporated on December 18, 2003, is a global payment services company. The Company�� products include global money transfers, bill payment solutions and financial paper products. MoneyGram conducts its business through its wholly owned subsidiary MoneyGram Payment Systems, Inc. (MPSI). The Company operates in two segments: Global Funds Transfer and Financial Paper Products. The Company�� global money transfer and bill payment services are its primary revenue drivers. The Company offers its money transfer services on the Internet via its MoneyGram Online service in the United States, United Kingdom and through agent Websites in Italy, Saudi Arabia and Japan. It also offers money transfer services via mobile phone, kiosks, ATM, receive cards and direct-to-bank account products in various markets worldwide. Effective July 8, 2013, MoneyGram International Inc acquired Latino Services, an Atlanta-based provider of money transfer services.
Global Funds Transfer
The Company�� Global Funds Transfer segment provides money transfer and bill payment services to consumers, who are often unbanked or underbanked. Unbanked consumers are those consumers who do not have a traditional relationship with a financial institution. Other consumers who use its services are convenience users and emergency users who may have a checking account with a financial institution, but prefer to use the Company�� services on the basis of convenience or to make emergency payments. MoneyGram offers services to consumers through third-party agents, including retail chains, independent retailers and financial institutions.
The Company provides Global Funds Transfer products and services utilizing a range of point-of-sale platforms. Its platforms include AgentConnect, which is integrated into an agent�� point-of-sale system, and DeltaWorks and Delta T3, which are separate software and stand-alone device platforms. Through its FormFree service, cust! omers may contact its call center and a representative will collect transaction information over the telephone, entering it directly into its central data processing system.
The Company offers money transfers to consumers in a choice of local currency, United States dollars or euros, in certain countries. MoneyGram�� bill payment services allow consumers to make urgent bill payments, pay routine bills, or load and reload prepaid debit cards. These industries include the credit card, mortgage, auto finance, telecommunications, corrections, satellite, property management, prepaid card and collections industries.
Financial Paper Products
The Company�� Financial Paper Products segment provides money orders to consumers through its retail and financial institution agent locations in the United States and Puerto Rico, and provides official check services for financial institutions in the United States. It sells money orders under the MoneyGram brand and on a private label or co-branded basis with certain of its retail and financial institution agents in the United States. During the year ended December 31, 2012, MoneyGram issued money orders through its network of 54,000 agent and financial institution locations in the United States and Puerto Rico. The Company generates revenue from its official check outsourcing services by charging per item and other fees, as well as from the investment of funds underlying outstanding official checks. As of December 31, 2012, the Company also provided official check outsourcing services at approximately 7,300 branch locations of more than 1,200 financial institutions.
The Company competes with The Western Union Company.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of Moneygram International (NASDAQ: MGI) were 14.99 percent to $12.59. JMP Securities downgraded Moneygram from Market Outperform to Market Perform. - [By Ben Levisohn]
Shares of World Acceptance Corporation have plunged 19% to $79.19 at 3:43 p.m.–and dragged down anything remotely connected to payday lending. Cash America International (CSH) has dropped 7.8% to $39.35, pawn-shop operator EZCorp (EZPW) has fallen 3.7% to $12.33, and wire-transfer companies Western Union (WU) and MoneyGram International (MGI) have fallen 2.6% and 5.8%, respectively.
Top 5 Services Stocks For 2014: Tencent Holdings Ltd (TCEHY)
Tencent Holdings Limited is an investment holding company. The Company and its subsidiaries are principally engaged in the provision of Internet value-added services, mobile and telecommunications value-added services and online advertising services to users in the People�� Republic of China. The Company operates in four segments: Internet value-added services, Mobile and telecommunications value-added services, Online advertising, and Others. As of December 31, 2011, its subsidiaries included Tencent Cyber (Tianjin) Company Limited, Tencent Asset Management Limited, Tencent Technology (Beijing) Company Limited, Tencent Cyber (Shenzhen) Company Limited, Tencent Technology (Shanghai) Company Limited and others. Advisors' Opinion:- [By Victoria Zhang]
Not all social networks are created equally
Renren,�which operates one of the most popular�social networks in the second-largest economy, has lost more than 80% of its market capitalization�since it went public. To put this in perspective, in the same period, competitor Tencent Holdings� (NASDAQOTH: TCEHY ) �experienced massive share appreciation, as its messaging apps�Tencent QQ and WeChat�gained international users, and therefore more advertisers. The company has become the third-largest Internet company in the world, only behind Google and Facebook. - [By Kevin Chen]
In the video below, Fool contributor Kevin Chen details five reasons why SINA may be forever doomed:�
SINA Weibo's daily active users may be exaggerated. Its registered users lag that of competitor Tencent� (NASDAQOTH: TCEHY ) Weibo. Its penetration rate trails Tencent Weibo. Its geographic make-up isn't poised for China's economic growth. Meanwhile, Tencent Weibo is. Renren� (NYSE: RENN ) , the "Facebook of China," and gaming portal�NetEase� (NASDAQ: NTES ) threaten SINA Weibo's viability as a social network.�So before you try to profit from the growing microblogging market in China, watch the video below to learn more about the five things Wall Street overlooks when analyzing SINA.
Top 5 Services Stocks For 2014: FBR & Co (FBRC)
FBR & Co., formerly FBR Capital Markets Corporation, is a full-service investment banking, institutional brokerage and asset management company. In addition, it makes principal investments, including merchant banking investments. The Company�� subsidiaries are FBR Capital Markets & Co. (FBR & Co.), FBR Capital Markets International, Ltd. (FBRIL), Financial Services Authority (FSA), and FBR Fund Advisers, Inc. (FBR Fund Advisers). Its segments include capital markets, which include investment banking and institutional brokerage and research; asset management, and principal investing, which includes merchant banking. It provides capital raising services, including underwriting and placement of public and private equity and debt; financial advisory services, including merger and acquisition advisory, restructuring, liability management, recapitalization and strategic alternative analysis; asset management services through a family of mutual funds; institutional sales and trading services focused on equities, equity-linked securities, listed options, high-yield bonds, senior debt and bank loans; and research coverage.
Capital Markets
The Company�� capital markets business is conducted by its investment banking and institutional brokerage professionals through its United States and United Kingdom broker-dealer subsidiaries. These professionals provide investment banking services, including capital raising and financial advisory services, and institutional brokerage services, including sales, trading, and research services, to its institutional clients across its core industry sectors.
Asset Management
The Company�� investment adviser subsidiaries principally manage a family of mutual funds. At December 31, 2011, it managed client assets through its 10 mutual fund product lines that cover a range of sectors and asset classes. Through attention to relative valuation and security selection, it manages mutual funds strive both to participate in rising m! arkets and preserve capital in down markets. It focuses on expanding its asset management business.
The Company�� investing activity consists primarily of investments in merchant banking investments, investments in publicly traded companies, and investments in short-term liquid instruments. This strategy involves putting its capital to work alongside the capital of its institutional clients.
Advisors' Opinion:- [By DAILYFINANCE]
Brian Smale/Microsoft via Getty ImagesNewly named Microsoft CEO Satya Nadella. SAN FRANCISCO -- After compiling a list of more than 100 CEO candidates, Microsoft settled on Satya Nadella a homegrown leader who joined the software maker in the early 1990s. That's back when Google's founders were teenagers and Facebook CEO Mark Zuckerberg was in elementary school. Tuesday's hiring of Nadella as Microsoft's CEO after a five-month search is a safe move that's likely to be greeted with sighs of relief around the company's Redmond, Wash., headquarters, industry analysts say. But the methodical, almost predictable decision is likely to reinforce perceptions that Microsoft (MSFT) is a plodding company reluctant to take risks as it competes against younger rivals who relish going out on a limb. While Google (GOOG) founder and CEO Larry Page boasts about his company taking "moon shots" and Zuckerberg promises to "move fast and break things," Microsoft has fallen behind the technological curve after underestimating the importance of Internet search more than a decade ago and reacting too slowly to the rise of mobile devices during the past seven years. Meanwhile, the sales of personal computers running on Microsoft's Windows software are shrinking. Microsoft's malaise may have narrowed the field of up-and-coming visionaries interested in running a company founded in 1975. Just as Microsoft founder Bill Gates and Apple (AAPL) founder Steve Jobs would never have considered working at IBM (IBM) in the 1980s, today's entrepreneurial whiz kids scoff at Microsoft's overtures. "Going to work at Microsoft could make it look like you are going back to the dark ages," says Richard Metheny, a management coach for the executive search firm Witt/Kieffer in Chicago. "It's a well-entrenched business that has had trouble lately figuring out how to play in this new world." Despite its challenges, Microsoft remains a moneymaking machine that sits atop an $84 billion cash pile. Tha
- [By Zachary Tracer]
FBR & Co. (FBRC) is leading the sale, according to a regulatory filing today from Emeryville, California-based NMI. The company said it�� seeking to raise $25 million, a placeholder amount used to calculate registration fees, according to the document.
Top 5 Services Stocks For 2014: Patterson Companies Inc.(PDCO)
Patterson Companies, Inc. operates as a distributor serving the dental, companion-pet veterinarian, and rehabilitation supply markets in North America. Its Dental Supply segment provides consumable dental supplies, such as x-ray film and solutions; impression and restorative materials; hand instruments; sterilization products; anesthetics; infection control products, including protective clothing, gloves, and facemasks; paper, cotton, and disposable products; toothbrushes; dental accessories; printed office products, office filing supplies, and practice management systems; x-ray machines, handpieces, dental chairs and handpiece control units, diagnostic equipment, dental lights, compressors, chair-side restoration systems, and inter-oral cameras; practice management and clinical software; hardware and networking solutions; and patient education solutions. The company?s Veterinary Supply segment offers consumable supplies, such as lab supplies, paper goods, needles and syr inges, gauze and wound dressings, sutures, latex gloves, and orthopedic and casting products; pharmaceuticals comprising anesthetics, antibiotics, ointments, and nutraceuticals; diagnostics; biologicals, including vaccines and injectibles; and equipment and software. Its Rehabilitation Supply segment provides dressing and grooming devices, and toileting, dining, and bathing aids; braces, splints, and orthotics; exercise bands, putty, weight balls, and mats; walkers, canes, and wheelchair accessories; rolls, wedges, seating and standers, and mobility assistance products; motor stimulation products; products for heating and cooling therapies, electrical stimulation, laser, ultrasound, paraffin, iontophoresis, and therapeutic creams and lotions; and rehabilitation equipment and software. The company was formerly known as Patterson Dental Company and changed its name to Patterson Companies, Inc. in June 2004. Patterson Companies, Inc. was founded in 1877 and is based in St. Paul , Minnesota.
Advisors' Opinion:- [By Eric Volkman]
Patterson (NASDAQ: PDCO ) has elected not to raise its quarterly shareholder payout. The company today declared a regular stock dividend of $0.16 per share, to be paid on July 26 to shareholders of record as of July 11. That amount matches the company's previous distribution, which was paid at the end of April. Before that, Patterson handed out $0.14 per share.
- [By Seth Jayson]
Patterson Companies (Nasdaq: PDCO ) reported earnings on May 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 27 (Q4), Patterson Companies met expectations on revenues and met expectations on earnings per share.
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