Understanding Southern Company’s (NYSE:SO) cost of debt, cost of equity and WACC is an important factor in stock research. Using these formulas an investor will understand how much the shareholder should expect in return for the stock over the long-term, how much the company pays for its debt and how much the company needs in return to break even on its investments.
Cost of Debt
The cost of debt is the effective rate that a company pays on its total
Continue reading Southern Company: Fundamental Analysis WACC, Cost of Debt and Cost of Equity $SO
January was a disappointing month for shareholders of Bed Bath & Beyond’s (BBBY). The share price fell from ~$80.00 to a low of ~$62.00 representing a decline of 22.5%. Some of the reasons for this drop in price include: slower-than-expected growth which caused the company to “miss” by more than a dime, as well same store sales were much lower than anticipated. These factors led to the company lowering guidance which added to shareholder concerns. So as the stock dropped
Continue reading Bed Bath & Beyond: An Undervalued Play On Economic Growth $BBBY
In looking for value in the Deep-water Drilling space three companies stand out value wise; Seadrill (SDRL), Atwood Oceanics (ATW) and Ensco PLC (ESV). All three companies are currently undervalued, have strong future backlog orders that will drive revenue growth, but seem to appeal to different markets and investor types.
The future looks strong in the deep-water drilling space as over the next four years, it is estimated that global growth in the offshore E&P sector will increase
Continue reading Drilling For Value In The Deep $SDRL $ESV $ATW
For investors looking for a leading integrated energy company with growing prospects, decent valuations and a solid dividend, Chevron (CVX) is worth further investigation.
With 2013 being a “relative peak year for investments” as the company acquired assets in Australia, the Permian Basin, Kurdistan Region of Iraq and Kitimat in BC Canada revisiting the company’s fundamentals from a debt point of view is important to see if the company has overleveraged itself or created any weakness that may not have
Continue reading Chevron: Acquisitions And A Weaker Q4 Provide A Buying Opportunity $CVX
Over the past couple of months, Seadrill Limited’s (SDRL) share price has declined just under 20% from its highs in September. There are some of the reasons for this disruption but the overall trend still remains bullish. Is this an excellent time to pick up shares in Seadrill Limited? I believe it is.
At this point in the market some of the valuation metrics look attractive for a potential investment. Currently, the stock is trading at just 8.31x earnings. This
Continue reading Seadrill: This Sell-Off Provides A Buying Opportunity $SDRL