It takes money to make money. Most investors know that, but with business media so focused on the "how much," very few investors bother to ask, "How fast?"
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Actuant (NYSE: ATU ) .
Let's break this down
In this series, we measure how swiftly a company turns cash into goods or services and back into cash. We'll use a quick, relatively foolproof tool known as the cash conversion cycle, or CCC for short.
Why does the CCC matter? The less time it takes a firm to convert outgoing cash into incoming cash, the more powerful and flexible its profit engine is. The less money tied up in inventory and accounts receivable, the more available to grow the company, pay investors, or both.
Best Companies To Own For 2014: Walker Crips Weddle Beck(WCW.L)
Walker Crips Group plc, an integrated financial services company, offers investment management services in the United Kingdom. Its services include stock broking, fund management, administrating individual savings accounts, and managing clients? deposits in the course of conducting investment business. The company?s services also comprise corporate finance, pension management and advice, corporate trustee services, structured investments design, and personal financial services; and securities trading, ISA/CTF, custody, deposit, and nominee services. In addition, it provides financial advice to individuals, partnerships, and companies; unit trust fund management to private and corporate clients; and corporate broking, as well as pension administration services. Walker Crips Group plc was founded in 1914 and is headquartered in London, the United Kingdom.
Best Companies To Own For 2014: Covenant Transportation Group Inc. (CVTI)
Covenant Transportation Group, Inc., together with its subsidiaries, offers truckload transportation and brokerage services in the continental United States. It provides long haul, dedicated, regional solo-driver, and regional temperature-controlled services. The company also offers freight brokerage services directly, as well as through freight brokerage agents. It serves transportation companies, such as freight forwarders, less-than-truckload carriers, and third-party logistics providers, as well as traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. As of June 30, 2011, the company operated 3,049 tractors and 7,133 trailers. Covenant Transportation Group, Inc. was founded in 1994 and is headquartered in Chattanooga, Tennessee.
Best Value Companies To Own In Right Now: Cardinal Health Inc. (CAH)
Cardinal Health, Inc. operates as a healthcare solutions company that provides health care products and services. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, over-the-counter healthcare, specialty pharmaceutical, and consumer products to retail customers, hospitals, and alternate care providers in the United States and Puerto Rico. This segment also operates nuclear pharmacies and cyclotron facilities that prepare and deliver radiopharmaceuticals for use in nuclear imaging and other procedures in hospitals and clinics; offers third-party logistics support services; franchises retail pharmacies under the Medicine Shoppe and Medicap brands; and provides pharmacy and pharmaceutical repackaging services, as well as other services comprising distribution, inventory management, data/reporting, new product launch support, and contract and chargeback administration. The Medical segment distributes a range of medical, surgical, and laboratory products to hospitals, surgery centers, laboratories, physician offices, and other healthcare providers. This segment also develops, manufactures, and sources medical and surgical products, including sterile and non-sterile procedure kits; single-use surgical drapes, gowns, and apparel; exam and surgical gloves; and fluid suction and collection systems. Its medical and surgical products are sold directly or through third-party distributors in the United States, Canada, Europe, South America, and the Asia/Pacific region. The company was founded in 1979 and is headquartered in Dublin, Ohio.
Advisors' Opinion:- [By Keith Speights]
This market reaction doesn't mean that Lymphoseek lacks solid potential. It does. The product should appeal to oncologists. Navidea has a tight relationship with Cardinal Health (NYSE: CAH ) , which has exclusive U.S. distribution rights for Lymphoseek. Cardinal operates the largest nuclear pharmacy network in the nation with 140 pharmacies.
- [By Ben Levisohn]
Overvalued companies include MWI Veterinary (MWIV) and�Stericycle (SRCL), while companies with attractive valuations include Cardinal Health (CAH), Selected Medical (SEM). He’s not a fan of Intrexon (XON) but calls�Aratana (PETX) a “hidden gem.”
- [By Dividend King]
Earnings per share for the last 12 months are $2.59, and these are expected to reach $2.81 in its next fiscal year (ending September 2012). These numbers place the shares on a trailing P/E ratio of 15.43, and a forward multiple of 12.30. Comparing the forward ratio to that of direct competitors Cardinal Health (CAH) and McKesson (MCK) Amerisource trades on a slightly higher rating, though not markedly so. Cardinal Health�� forward multiple is 11.99 and McKesson�� is 11.22.
- [By Rich Smith]
Yesterday, the Pentagon announced awards of just $347 million in new contracts to contractors. Some were not the kind of companies you'd expect. For example:
Dell (NASDAQ: DELL ) landed a $9.6 million contract to supply the U.S. Army with desktop computers and tablets. Cardinal Health (NYSE: CAH ) won $18.6 million as a contract modification exercising an option year on a contract to supply various Army, Navy, Air Force, and Marine Corps locations, and federal civilian agencies, with laboratory supplies through April 12, 2014.On the other hand, traditional defense contractors are still earning money by working for the Pentagon. On Tuesday, Raytheon (NYSE: RTN ) was awarded a $35.2 million order for AN/ALE-50 towed decoys, which aircraft can deploy to distract incoming missiles. Raytheon is expected to complete deliveries on this contract by March 31, 2015.
Best Companies To Own For 2014: Star Pharmaceutical Limited (X64.SI)
STAR Pharmaceutical Limited engages in the manufacture and sale of western and traditional Chinese medicine-formulated prescription drugs. The company primarily offers antibiotics, cerebrovascular drugs, cardiovascular drugs, and other specialized drugs in various dosages and administration forms ranging from powder injections, lyophilized powder injections, and liquid injections to tablets, capsules, and granules. It sells its products through a network of approximately 398 distributors to hospitals, clinics, and pharmacies in the People�s Republic of China. The company was founded in 1993 and is based in Haikou City, the People�s Republic of China. STAR Pharmaceutical Limited is a subsidiary of DB NOMINEES (S) PTE LTD.
Best Companies To Own For 2014: Pool Corporation (POOL)
Pool Corporation operates as a wholesale distributor of swimming pool supplies, equipment, and related leisure products in North America and Europe. The company offers approximately 100,000 national brand and Pool Corporation branded products. It sells maintenance products, such as chemicals, supplies, and pool accessories; repair and replacement parts for cleaners, filters, heaters, pumps, and lights; packaged pool kits, including walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and landscape products, such as professional lawn care equipment. The company also offers complementary products, including building materials used for pool installations and remodeling, such as concrete, plumbing and electrical components, and pool surface and decking materials; and other discretionary recreational and related outdoor lifestyle products. Pool Corpora tion serves swimming pool remodelers and builders, retail swimming pool stores, swimming pool repair and service businesses, landscape construction and maintenance contractors, and golf courses. The company was founded in 1993 and is based in Covington, Louisiana.
Advisors' Opinion:- [By Seth Jayson]
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Pool (Nasdaq: POOL ) .
Best Companies To Own For 2014: King Solomon Mines Ltd (KSO.AX)
King Solomon Mines Limited, through its subsidiaries, engages in the acquisition, exploration, and development of mineral resource properties in China. It primarily explores for gold, copper, and other metallic deposits. The company�s properties located in the Sonid Zuoqi county, Inner Mongolia include the Marmot copper�molybdenum�gold project that covers an area of 39.7 square kilometers; Sonid North gold project covering an area of 24.8 square kilometers; and Naogaoshandu gold project, which covers an area of 47.2 square kilometers. It also holds interest in Bu Dun Hua porphyry copper�molybdenum project covering an area of 25.1 square kilometers in the Wengniute County, Inner Mongolia. The company was founded in 2003 and is based in Auckland, New Zealand.
Best Companies To Own For 2014: Anconia Resources Corp (ARA.V)
Anconia Resources Corp. (Anconia), formerly Citadel Gold Mines Inc., is an exploration-stage company. On June 15, 2011, 2215107 Ontario Inc. (221) completed a reserve takeover (RTO) of Anconia. 221 is a holding an option to acquire a 100% interest in certain mining claims: the ZAC property and the Marce property. In addition to the ZAC and Marce properties, the Company has staked an additional two exploration projects, the RB Property and the ARNI Property. The Marce property is located approximately 18 kilometers Southwest of the ZAC property and consists of four staked claims covering an area of approximately 23.4 square kilometers. The RB property is located approximately 45 kilometres East-South-East of the ZAC claims, and consists of four staked claims covering approximately 41.8 square kilometers. The ARNI property is a Copper Nickel prospect on the shore of Baker Lake approximately 60 kilometers east of the town of Baker Lake.
Best Companies To Own For 2014: Csm Systems Corp (CKX.V)
CSM Systems Corp., through its subsidiary, Visionstate Inc., develops, installs, and customizes interactive touch screen customer service technology suitable for various types of public spaces. Its core software platform is known as ViCCi, an acronym for virtual customer care interface. The company offers building digital display networks and digital sales assistants to customers, including shopping centers, recreation centers, office buildings, and other places that require wayfinding. It also provides mobile iphone applications; and sells its kiosks to home development project for displaying information about the project. In addition, the company offers consulting, graphic, and Web design and related services and support. CSM Systems Corp. is based in Edmonton, Canada.
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