A Baker’s Dozen Of Top Value-Stocks For 2012: Part II
Mon, Jan 30, 11:54 AM ET, by Walter Gault, Sabrient.com
Here’s an excerpt from second in a series of articles (read part I here) written by Daniel Sckolnik for Seeking Alpha that reviews Sabrient Systems annual ‘Baker’s Dozen’, a list of 13 top-ranked stocks that was presented during a live webcast on January 5th, 2012:
Let’s take a look at two more stocks on the list, United Rental, ranked #12, and Kronos Worldwide, which came in at #11. Ameristar Casinos was reviewed in part I.
United Rentals is the largest equipment rental company in the world, with an integrated network of more than 550 rental locations in 48 states and 10 Canadian provinces. Its customer base includes construction and industrial companies, utilities, municipalities, and homeowners.
Like Ameristar Casinos, United Rental is somewhat of a “misfit” within the Baker’s Dozen, meaning it was selected despite the major negative of heavy leverage. However, it also has a one-year earnings growth projection of over 400%, the biggest among the 13 stocks.
United Rental has been a top performer in industrial services, which, in turn, happens to be the top performing industry group during the course of the past year. An additional factor that makes the stock eligible for membership in the elite “BD” club is that the company carries about $200 million in cash.
Next up is Kronos Worldwide, Inc., a global producer and marketer of titanium dioxide pigments (TiO2), providing technical services to over 4,000 customers in North America and Europe. TiO2 is an inorganic pigment used to impart whiteness, brightness and opacity for products, such as coatings, plastics, paper, fibers, food, ceramics and cosmetics. In addition, TiO2 has resistance to interaction with other chemicals, thermal stability and resistance to ultraviolet degradation.
Kronos is hardly a Wall Street darling, but maybe it should be…
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