ExxonMobil (NYSE: XOM) is a $300 billion company trading at nearly 12 times earnings. Has this super major oil company reached a peak valuation — or should these shares be an immediate addition to your portfolio? My take: ExxonMobil is a buy. I have five reasons for it. 1. Easy oil is gone. In the early days of the oil business, oil lurked, somewhat reliably, in certain geological formations. Wildcatters sought to capitalize on this untapped wealth. And while the… Read More

ExxonMobil (NYSE: XOM) is a $300 billion company trading at nearly 12 times earnings. Has this super major oil company reached a peak valuation — or should these shares be an immediate addition to your portfolio? My take: ExxonMobil is a buy. I have five reasons for it. 1. Easy oil is gone. In the early days of the oil business, oil lurked, somewhat reliably, in certain geological formations. Wildcatters sought to capitalize on this untapped wealth. And while the oil business was never really “easy,” it seemed like there was an unlimited supply. But that was not the case, and as many of the United States’ largest fields have been tapped. Finding major new fields is becoming harder and harder. Most onshore oil reserves are government-controlled. That’s great news for Exxon. As a capable cost manager and with a reputation for delivering results on time, it’s the go-to oil company to help nations develop their petroleum reserves. In the next two years alone, Exxon will start major projects in Qatar, Canada, Russia and throughout Africa, with… Read More

A recent survey by Interbrand, a leading brand consulting firm, awarded top brand honors to Coca-Cola Co. (NYSE: KO). Should this come as any surprise? Perhaps not. But what is surprising is that a new related product appears to be breathing new life into the firm’s more mature markets, while the company continues to expand at an impressive clip in faster-growing emerging markets. Just recently, Coca-Cola’s home market was seen as a liability that was dragging down more compelling growth prospects overseas, especially in the high-growth BRIC (Brazil, Russia,… Read More

A recent survey by Interbrand, a leading brand consulting firm, awarded top brand honors to Coca-Cola Co. (NYSE: KO). Should this come as any surprise? Perhaps not. But what is surprising is that a new related product appears to be breathing new life into the firm’s more mature markets, while the company continues to expand at an impressive clip in faster-growing emerging markets. Just recently, Coca-Cola’s home market was seen as a liability that was dragging down more compelling growth prospects overseas, especially in the high-growth BRIC (Brazil, Russia, India, China) countries and those quickly developing a new class of mass consumers. But then, almost completely out of nowhere, Coke Zero came along. The zero-calorie take on the company’s flagship beverage pushed volume growth up a couple of percent in North America — a notable reversal of an extended period of flat volume trends. Second quarter results released late in July saw total worldwide volume increase +5% — even ahead of even the company’s own expectations. Volumes led by the flagship Coca-Cola brand grew +5% as well. The Interbrand survey cited above placed… Read More

When communications software firm VirnetX Holdings (AMEX: VHC) released quarterly results last Monday, investors may have thought the company’s press release had a glaring error. Sales, which had never exceeded $21,000 in any prior quarter, suddenly exploded to $200 million. It was no misprint. VirnetX finally got a nice payoff after several years of lawsuits regarding patent infringements. Other companies that sue to get royalties are also hopeful for similar windfalls. And when these companies prevail, profits can grow quickly, as patent and royalty income often flow straight to the… Read More

When communications software firm VirnetX Holdings (AMEX: VHC) released quarterly results last Monday, investors may have thought the company’s press release had a glaring error. Sales, which had never exceeded $21,000 in any prior quarter, suddenly exploded to $200 million. It was no misprint. VirnetX finally got a nice payoff after several years of lawsuits regarding patent infringements. Other companies that sue to get royalties are also hopeful for similar windfalls. And when these companies prevail, profits can grow quickly, as patent and royalty income often flow straight to the bottom line. So how can investors profit from companies with potentially lucrative patents? I’ve uncovered three companies sitting on potential gold mines in terms of their intellectual property. 1. VirnetX Holdings In the next 12 months, consumers should see an array of new smart phones offering super-fast download speeds. [See: The Time is Ripe to Short this Wireless Upstart] Yet as more and more personal and corporate information is sent out over the mobile broadband airwaves, the risk of data theft also rises. To… Read More

Many companies are handling these tough times in a defensive crouch. Keeping sales stable and expenses at a minimum enables them to survive until the economy gets back on its feet. But select companies are able to take advantage of these challenging times, aggressively… Read More

The Dow Jones Industrial Average isn’t considered the most accurate reflection of the market’s overall performance, but few can argue against the fact that it is the most widely recognized and highly symbolic representation of the state of American stocks. Outside of the large-cap, old-line American companies… Read More

A fair number of initial public offerings (IPOs) have flourished in this choppy market . Indian travel site MakeMyTrip (Nasdaq: MMYT), up as much as +66% in its first day of trading Thursday, and rental housing software firm RealPage (Nasdaq: RP), up +30%, are two of the latest examples. Read More

The oil spill disaster in the Gulf of Mexico will alter the landscape for offshore drilling for decades to come. Uncertainty over new regulations, lawsuits and the near-term hit to business in the region have sent the share prices of many major players in the industry to multi-year lows. But at current valuations, shares of these major players are pricing in extremely negative outcomes and don’t take into consideration that Gulf drilling is a small and declining percentage of global activity. As a result, I’ve found one major industry player that… Read More

The oil spill disaster in the Gulf of Mexico will alter the landscape for offshore drilling for decades to come. Uncertainty over new regulations, lawsuits and the near-term hit to business in the region have sent the share prices of many major players in the industry to multi-year lows. But at current valuations, shares of these major players are pricing in extremely negative outcomes and don’t take into consideration that Gulf drilling is a small and declining percentage of global activity. As a result, I’ve found one major industry player that qualifies as “The Bargain Stock of the Year.” After several months of high-level drama and extreme uncertainty, the oil spill in the Gulf appears to finally be under control. BP plc (NYSE: BP) is in the midst of completing its “static kill” cap that should stem the leak from the Macondo well permanently. In addition to the devastation the disaster has brought to the Gulf region, share prices of BP and its partners in the well, which include Anadarko Petroleum (NYSE: APC) and Mitsui, which owned about 25% and 10% of the well, respectively,… Read More

In my Daily Paycheck newsletter, I buy income-generating securities for the long haul — reinvesting dividends for compound growth and income. But when I see an investment with ridiculous fundamentals, coupled with a repeating trend, it gets my trader’s heart beating. And that’s what I see when… Read More

There are so many crosscurrents in the U.S. economy right now that the stock market has no idea where it wants to go. Every trading day, we get a new set of items to digest that sets a short-term trend for the market. As… Read More

The largest players in the technology space garner the lion’s share of attention. Investors are obsessed with Apple (Nasdaq: AAPL), as are consumers who have shifted from snapping up iPods to iPhones and the newest iPad device. Google (Nasdaq: GOOG) is the other big name that draws attention with its… Read More