You may have noticed: Mortgage rates are spiking. From a low of 3.34% earlier this year, the average 30-year mortgage now runs 3.81%. Most of that gain came in the last week.
What's going on? It's likely a combination of two things. Federal Reserve chairman Ben Bernanke hinted last week that the Fed may begin tapering its "quantitative easing" policies sooner than some imagined.There also seems to be a general sense that the economy is getting better. That pushes investors away from safe assets like mortgages and toward riskier ones like stocks.
The common reaction to rising mortgage rates is to wonder whether it will sting the housing market. Indeed, it may. But you have to keep perspective. Mortgage rates are rising from absurdly low rates. The "spike" of the last week brings interest rates back all the way to where they were less than a year ago. In context of the last 30 years, the rise is barely noticeable:
Source: Federal Reserve.
Best International Stocks To Own Right Now: FreightCar America Inc (RAIL)
FreightCar America, Inc. (America) is engaged in manufacturing of aluminum-bodied railcars in North America. America is also a manufacturer of coal cars. During the year ended December 31, 2011(2011), the Company was specialized in the production of coal cars, which represented 93% of its deliveries of railcars. The Company also refurbishes and rebuilds railcars and sells forged, cast and fabricated parts for all of the railcars it produces, as well as those manufactured by others. During 2011, its primary customers were railroads, shippers and financial institutions, which represented 83%, 2% and 1%, respectively, of its total sales attributable to each type of customer. During 2011, it delivered 6,188 railcars, including 4,500 aluminum-bodied coal cars. It offers railcar leasing and refurbishment alternatives to its customers. Through its newly formed subsidiary FreightCar Rail Services, LLC (FCRS), it provides railcar repair and maintenance, inspections, and railcar fleet management services for all types of freight railcars. Its railcar manufacturing facilities are located in Danville, Illinois and Roanoke, Virginia.
The Company also leases freight cars through its JAIX Leasing Company subsidiary. In addition, the Company manufactures coal cars for export to Latin America and manufactures intermodal railcars for export to the Middle East. With operations in Colorado, Indiana and Nebraska, it services freight cars and unit coal trains utilizing rail corridors in the Midwest and Western regions of the United States. The Company designs and manufactures aluminum-bodied and steel-bodied railcars that transport a range of various products. It manufactures two primary types of coal cars, such as gondolas and open-top hoppers. The BethGon is the aluminum-bodied coal gondola railcar segment, which is used in North America. Its aluminum bodied open-top hopper railcar, the AutoFlood, is a five-pocket coal car equipped with a bottom discharge gate mechanism. AutoFlood II and AutoFlood III design! incorporates the automatic rapid discharge system, the MegaFlo door system and a mechanism that uses an over-center locking design, enabling the cargo door to close with tension rather than by compression.
The Company also manufactures a range of other types of aluminum and steel-bodied coal cars, including triple hopper, hybrid aluminum/stainless steel hoppers and gondolas and flat bottom gondola railcars. The Company�� portfolio of other railcar types include the AVC Aluminum Vehicle Carrier design, which is used to transport commercial and light vehicles (automobiles and trucks) from assembly plants and ports to rail distribution centers; the Articulated Bulk Container railcar designed to carry dense bulk products, such as waste products in 20 foot containers; Intermodal Double Stack railcars, including a stand-alone, 40 foot well car and the DynaStack articulated, 5-unit, 40 foot and 3-unit, 53 foot well cars for transportation of containers; a Small Cube Covered Hopper railcar, which is used to transport products, such as roofing granules, fly ash, sand and cement; a Mill Gondola Railcar, which is used to transport steel products and scrap; Slab and Coil steel railcars, which is designed for transportation of steel slabs and coil steel products, respectively; Flat Railcars, Bulkhead Flat Railcars and Centerbeam Flat Railcars, which is designed to transport a range of products, including machinery and equipment, steel and structural steel components (including pipe), forest products and other bulky industrial products; a Woodchip Gondola Railcar, which is designed to haul woodchips and municipal waste, and a range of non-coal carrying open top hopper railcars designed to carry aggregates, iron ore, taconite pellets, petroleum coke and other bulk commodities.
The Company has established a licensing arrangement with a railcar manufacturer in Brazil pursuant to which its technology is used to produce various types of railcars in Brazil. In addition, it manufacture coal car! s for exp! ort to Latin America and have manufactured intermodal railcars for export to the Middle East. Railroads outside of North America have a range of track gauges that are sized differently than in North America, which requires it, in some cases, to alter manufacturing specifications for foreign sales. The Company has added 10 new or redesigned products to its portfolio in the last five years, including the AVC, slab and coil steel railcar, triple hopper and hybrid aluminum/stainless steel railcars, ore cars, ballast cars and aggregate cars. The Company�� manufacturing process involves four basic steps: fabrication, assembly, finishing and inspection. In its fabrication processes, it employ standard metal working tools, many of which are computer controlled. Each assembly line typically involves 15 to 20 manufacturing positions, depending on the complexity of the particular railcar design. It uses mechanical fastening in the fitting and assembly of its aluminum-bodied railcar parts, while it uses welding for the assembly of its steel-bodied railcars.
The Company competes with Trinity Industries, Inc., National Steel Car Limited, The Greenbrier Companies, Inc. and American Railcar Industries, Inc.
Advisors' Opinion:- [By Eric Volkman]
FreightCar America (NASDAQ: RAIL ) has found an internal candidate to be its new COO and president. The company named CFO Joseph McNeely to the position, effective immediately.
- [By SA Pro Top Ideas]
Stock Movers and Great Calls
On July 24, Mike Williams explained why FreightCar America's (RAIL) shares could double by 2015 as it returned to historic profitability. Shares are +16.3% to date after a strong earnings report this week. Read article » Vince Martin said on June 17 that Cray's (CRAY) sell-off after Q1 earnings was way overdone, offering investors a great deal. After a strong earnings report last week, shares now stand +45% from where they were before the article. Read article »
Alpha-Rich long and short ideas regularly move stocks and identify stocks that are about to move. Some notable recent calls subscribers had early access to:To Come Today
Don't forget to check your SA Pro dashboard later today for the latest Alpha-Rich ideas. Any thoughts to share on the latest Alpha-Rich ideas? Leave a comment here.
SA Pro Editors
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The SA Pro team is Eli Hoffmann (Editor in Chief), Rachael Granby (Editorial Product Manager), Daniel Shvartsman, Samir Patel, Michael McDonald, and Jeffrey Fischer (Senior Pro Editors). You can reach us at pro-editors@seekingalpha.com.
Top 5 Rising Stocks For 2014: Cincinnati Financial Corporation(CINF)
Cincinnati Financial Corporation engages in the property casualty insurance business in the United States. Its Commercial Lines Property Casualty Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers? compensation. It also offers specialty packages, including coverages for property, liability, and business interruption for specific industry classes, such as artisan contractors, dentists, or street businesses. In addition, this segment provides contract and commercial surety bonds, fidelity bonds, and director and officer liability insurance, as well as machinery and equipment coverage. The company?s Personal Lines Property Casualty Insurance segment offers coverage for personal auto and homeowners, as well as other insurance products, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. Cincinnati Financial?s Excess and Surplus Lines Property Casualty Insurance s egment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, including products and completed operations; and commercial property insurance, which insures loss or damage to buildings, inventory, equipment, and business income from causes of loss, such as fire, wind, hail, water, theft, and vandalism. The company?s Life Insurance segment provides term insurance; universal life insurance; whole life insurance; and worksite products, which include term, whole life, universal life, and disability insurance offered to employees through their employer. This segment also markets disability income insurance, deferred annuities, and immediate annuities. Its Investment segment invests in fixed-maturity investments, equity investments, and short-term investments. Cincinnati also offers commercial leasing and financing services. The company was founded in 1950 and is headquarte red in Fairfield, Ohio.
Advisors' Opinion:- [By Ben Levisohn]
Loew’s, however isn’t just cheap on its own terms. It’s also cheap relative to other investor insurers, including Markel (MKL), Cincinnati Financial (CINF) and Berkshire Hathaway. Shanker and Stefano write:
- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number GD is trading at a premium to all four valuations above. The stock is trading at a 49.9% premium to its calculated fair value of $71.45. GD did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% GD earned two Stars in this section for 1.) and 2.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1979 and has increased its dividend payments for 23 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA (20-year Treasury bond). Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA The NPV MMA Diff. of the $741 is below the $1,200 target I look for in a stock that has increased dividends as long as GD has. If GD grows its dividend at 10.0% per year, it will take 6 years to equal a MMA yielding an estimated 20-year average rate of 3.68%. Memberships and Peers: GD is a member of the S&P 500 and a member of the Broad Dividend Achievers��Index. The
- [By Dividends4Life]
Linked here is a detailed quantitative analysis of Cincinnati Financial Corp. (CINF). Below are some highlights from the above linked analysis: Company Description: Cincinnati Financial Corp. is an insurance holding company that primarily markets property and casualty coverage. It also conducts life insurance and asset management operations.
Top 5 Rising Stocks For 2014: Atlatsa Resources Corp (ATL)
Atlatsa Resources Corporation is engaged in mining, exploration and development of mineral deposits located in the Bushveld Igneous Complex (BIC), South Africa. The principal business activity is the mining and exploration of platinum group metals (PGM), through its mineral property interests. The Company�� subsidiaries include N1C Resources Incorporation, Anooraq Minera Mexicana, N2C Resources Incorporation, Plateau Resources Proprietary Limited, Bokoni Holdings Proprietary Limited, Bokoni Mines Proprietary Limited, Boikgantsho Proprietary Limited, Kwanda Proprietary Limited, Ga-Phasha Proprietary Limited, Middlepunt Hill Management Services (Proprietary) Limited and Lebowa Platinum Mine Limited. Advisors' Opinion:- [By Roberto Pedone]
Another stock that's starting to move within range of triggering a big breakout trade is Atlatsa Resources (ATL), which engages in the mining, exploration and development of platinum group metals properties located in the Bushveld Igneous Complex in South Africa. This stock has been on fire so far in 2013, with shares up a whopping 198%.
If you take a look at the chart for Atlatsa Resources, you'll notice that this stock has been uptrending strong for the last two months and change, with shares soaring higher from its low of 28 cents per share to its intraday high of 46 cents per share. During that uptrend, shares of ATL have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of ATL have now started to take out some near-term overhead resistance levels at 43 cents to 44 cents per share. That move is quickly pushing shares of ATL within range of triggering another big breakout trade.
Market players should now look for long-biased trades in ATL if it manages to break out above its 52-week high at 50 cents per share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 170,178 shares. If that breakout hits soon, then ATL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at 63 cents to 73 cents per share, or even 80 cents per share.
Traders can look to buy ATL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of 39 cents per share, or near more support at 37 cents per share. One can also buy ATL off strength once it clears its 52-week high at 50 cents with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top 5 Rising Stocks For 2014: Kingdee International Software Group Co Ltd (KGDEF)
Kingdee International Software Group Company Limited is an investment holding company. The principal activities of the Company and its subsidiaries are developing, manufacturing and selling of enterprise management software products and provision of software-related technical services in the People's Republic of China. The Company operates in two segments: enterprise management software business, which is engaged in the sales and implementation of enterprise management software, provision of other related services and sales of hardware related to enterprise management software arrangements, and others, which is engaged in the sales of middleware software business and provision online management services. Its subsidiaries include Beijng Kingdee System Technology Co., Ltd., Kingdee E-commerce Service (Shenzhen) Co., Ltd. and others. Advisors' Opinion:- [By WWW.MARKETWATCH.COM]
HONG KONG (MarketWatch) -- Hong Kong stocks trimmed their gains but held to positive territory Wednesday after data showing China's economic growth accelerated to 7.5% in the second quarter, ticking up from a 7.4% gain in the first quarter. The Hang Seng Index (HK:HSI) inched up 0.2%, off slightly from a 0.3% advance ahead of the data, while the Shanghai Composite Index (CN:SHCOMP) dipped 0.1%. Mainland Chinese power companies posted broad gains, with Huadian Power International Corp. (HK:1071) rallying 4.2% after the company forecast its profit for the first six months of the year would jump 55% to 65% from a year earlier. Other stocks in the sector also attracted investors' interest, with Datang International Power Generation Co. (HK:0991) (DIPGF) (CN:601991) and Huaneng Power International Inc. (HK:0902) (HUNGF) (CN:600011) gaining 2.3% and 1.6%, respectively. Menswear maker China Fordoo Holdings Ltd. (HK:2399) rose 1% on its first day of trading. However, most software and gaming companies declined, with Kingdee International Software Group (HK:0268) (KGDEF) losing 1.4%, bigger rival Kingsoft Corp. (HK:3888) (KSFTF) falling 0.9%, and Forgame Holdings L
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