Stocks and Investing Stocks and Investing
Wed, April 27, 2011

OXY, ETN, BEN, WHR, LIFE, MD, Petroleum Stocks Undervalued


Published on 2011-04-27 06:11:51 - WOPRAI
  Print publication without navigation


April 27, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Petroleum sector and these stocks are the most undervalued as of today. OCCIDENTAL PETROLEUM CORP (NYSE:OXY), EATON CORP (NYSE:ETN), FRANKLIN RESOURCES INC (NYSE:BEN), WHIRLPOOL CORP (NYSE:WHR), LIFE TECHNOLOGIES CORP (NASDAQ:LIFE), MEDNAX INC (NYSE:MD) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     OXY        OCCIDENTAL PETROLEUM CORP           $102.91        $130.21        21.00% Undervalued          Petroleum              
     ETN        EATON CORP                          $54.91         $69.47         21.00% Undervalued          Diversified Companies  
     BEN        FRANKLIN RESOURCES INC              $126.35        $159.84        21.00% Undervalued          Financial              
     WHR        WHIRLPOOL CORP                      $87.86         $108.40        18.90% Undervalued          Home                   
     LIFE       LIFE TECHNOLOGIES CORP              $54.56         $66.93         18.50% Undervalued          Drug                   
     MD         MEDNAX INC                          $67.95         $83.07         18.20% Undervalued          BusinessSvc            

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

OCCIDENTAL PETROLEUM CORP (NYSE:OXY) - Occidental Petroleum Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company primarily in the United States. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. The Oil and Gas segment explores for, develops, produces, and markets crude oil, natural gas liquids, and condensate and natural gas. Its domestic oil and gas operations are located in Texas, New Mexico, California, Kansas, Oklahoma, Utah, and Colorado. Its international oil and gas operations are located in Argentina, Bahrain, Bolivia, Colombia, Libya, Oman, Qatar, the United Arab Emirates, and Yemen. As of December 31, 2009, this segment had proved reserves of approximately 3,225 million barrels of oil equivalent. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, and ethylene dichloride products; vinyls, such as VCM and PVC; and other chemicals comprising chlorinated isocyanurates, resorcinol, sodium silicates, and calcium chloride products. The Midstream, Marketing, and Other segment gathers, treats, processes, transports, stores, purchases, and markets crude oil that includes natural gas liquids and condensate, as well as natural gas, and carbon dioxide. This segment also provides power. Occidental Petroleum Corporation was founded in 1920 and is based in Los Angeles, California.

EATON CORP (NYSE:ETN) - Eaton Corporation operates as a power management company primarily in the United States, Canada, Latin America, Europe, and the Asia Pacific. The company provides electrical components and systems for power quality, distribution, and control; hydraulics components, systems, and services for industrial and mobile equipment; aerospace fuel, hydraulics, and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy, and safety. It also manufactures screw-in cartridge valves, custom-engineered hydraulic valves, and manifold systems. In addition, the company designs, manufactures, and distributes intake and exhaust valves for diesel and gasoline engines; supplies electrical components for commercial and residential building applications, and industrial controls for industrial equipment applications; and manufactures human machine interfaces, programmable logic controllers, and input/output devices. Further, the company operates as a distributor and service provider of single phase and three-phase uninterruptible power supply systems. Eaton Corporation has a joint venture agreement with Nittan Global Tech Co. Ltd. to manage the design, manufacture, and supply of engine valves and valve actuation products to Japanese and Korean automobile and engine manufacturers; and a joint venture interest in SEG Middle East Power Solutions & Switchboard Manufacture LLC that manufactures low voltage switchboards and control panel assemblies for use in the power generation and industrial markets. The company was founded in 1916 and is headquartered in Cleveland, Ohio.

FRANKLIN RESOURCES INC (NYSE:BEN) - Franklin Resources Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It primarily manages families of equity, fixed income, and balanced mutual funds for its clients. The firm also provides retirement plans and separate account services. It invests in the public equity and fixed income markets across the world. Franklin Resources, Inc was founded in 1947 and is based in San Mateo, California with additional offices in Argentina, Australia, Austria, Bahamas, Brazil, Canada, China, France, Germany, Holland, Hong Kong, Hungary, India, Italy, Japan, Luxembourg, Malaysia, Mexico, Poland, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, United Kingdom, and Vietnam.

WHIRLPOOL CORP (NYSE:WHR) - Whirlpool Corporation engages in the manufacture and marketing of home appliances worldwide. Its principal products include laundry appliances, refrigerators, cooking appliances, dishwashers, mixers, and other small household appliances. The company also produces hermetic compressors for refrigeration systems. It markets and distributes its products under various brand names, which include Whirlpool, Maytag, KitchenAid, Jenn-Air, Roper, Estate, Admiral, Magic Chef, Amana, Inglis, Acros, KIC, Ignis, Bauknecht, Brastemp, Consul, Eslabon de Lujo, Laden, Polar, and Supermatic in North America, Europe, Latin America, and Asia. Whirlpool Corporation sells its products to retailers, dealers, distributors, builders, and other manufacturers. The company was founded in 1906 and is based in Benton Harbor, Michigan.

LIFE TECHNOLOGIES CORP (NASDAQ:LIFE) - Life Technologies Corporation operates as a life sciences company with a focus on improving the human condition worldwide. Its systems, consumables, and services enable scientific researchers and commercial markets to accelerate scientific exploration, leading to discoveries and developments that better the quality of life. Life Technologies customers work across the biological spectrum, advancing genomic medicine, regenerative science, molecular diagnostics, agricultural and environmental research, and 21st century forensics. The company delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its product portfolio comprises technologies for PCR, sample preparation, cell culture, RNA interference analysis, functional genomics research, proteomics and cell biology applications, capillary electrophoresis based sequencing, and next generation sequencing, as well as clinical diagnostic applications, forensics, animal, food, pharmaceutical, and water testing analysis. The company has a presence in approximately 160 countries, and possesses an intellectual property estate of approximately 4,000 patents and exclusive licenses. Life Technologies was created by the combination of Invitrogen Corporation and Applied Biosystems, Inc. The company is based in Carlsbad, California.

MEDNAX INC (NYSE:MD) - MEDNAX, Inc., through its subsidiary, Pediatrix Medical Group, Inc. provides neonatal, maternal-fetal, other pediatric subspecialty and anesthesia physician services in the United States and Puerto Rico. The companys neonatal care services include clinical care to babies born prematurely or with complications through neonatologists, neonatal nurse practitioners, and other pediatric clinicians. Its maternal-fetal care services comprise outpatient and inpatient clinical care to expectant mothers and their unborn babies through maternal-fetal medicine sub specialists, obstetricians, and other clinicians. The companys pediatric cardiology care services consist of inpatient and outpatient pediatric cardiology care of the fetus, infant, child, and adolescent patients with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through pediatric cardiologist sub specialists, pediatric nurse practitioners, echocardiographers, diagnostic technicians, and exercise physiologists. Its other pediatric subspecialty care services include care of critically ill or injured children and adolescents through pediatric intensivists. The companys affiliated physicians provide clinical services in labor and delivery area, nursery, and pediatric department. It offers anesthesia care services through a team of physician anesthesiologists, certified registered nurse anesthetists, and anesthesia assistants. The company also provides medical care and consultations in various settings and situations. As of December 31, 2009, its network comprised 1,484 affiliated physicians, including 928 neonatal physicians. The company was founded in 1979 and is based in Sunrise, Florida.

About BUYINS.NET

BUYINS.NET, www.buyins.net , monitors trading in all US stocks in real time and maintains massive databases of short sale and naked short sale time and sales data, short squeeze SqueezeTrigger prices, market maker price movements, shareholder data, statistical data on earnings, sector correlation, seasonality, hedge fund trading strategies, comparable valuations. Reports include:

REGULATORY & COMPLIANCE NEWS

Friction Factor -- market maker surveillance system tracking Level II market makers in all stocks to determine Price Friction and compliance with new "Fair Market Making Requirements"

RegSHO Naked Shorts -- tracks EVERY failure to deliver in all US stocks and tracks all Threshold Security Lists daily for which stocks have naked shorts that are not in compliance with Regulation SHO

INVESTMENTS & TRADING

SqueezeTrigger -- 29 billion cell database tracks EVERY short sale (not just total short interest) in all US stocks and calculates volume weighted price that a short squeeze will begin in each stock.

Earnings Edge -- predicts probability, price move and length of move before and after all US stock earnings reports.

Seasonality -- predicts probability, price move and length of move based on exact time of year for all US stocks.

Group Trader -- tracks sector rotation and stock correlation to its sector and predicts future moves in ALL sectors and industry groups.

Pattern Scan -- automates tracking of every technical pattern and predicts time and size of move in all stocks.

GATS (Global Automated Trading System) -- tracks all known trading strategies and qualifies and quantifies which are working best in real time.

DISCLAIMER:

BUYINS.NET is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell any securities. BUYINS.NET has not been compensated by any of the above mentioned companies. Past performance is not indicative of future results. Please visit our web site, www.buyins.net , for complete risks and disclosures.

Contact:

BUYINS.NET Thomas Ronk 800-715-9999 tom@buyins.net www.buyins.net

Contributing Sources