It’s not often that you get to see, in real time, how some of the analysts you follow are performing. With our CAPS system, that’s now possible. Even more rare is the ability to get real-time updates on what analysts are buying and selling — all for free.
But that’s exactly what we offer at The Motley Fool, through our Real-Money Stock Picking program. Ten of the Fool’s in-house analysts are making real purchases with the Fool’s money. I’ve highlighted three of those buys made in April, and the reasoning behind them. At the end, I’ll offer up access to a special premium report on one of these three companies.
Analyst Nathan Parmelee, having worked for years on The Motley Fool’s Global Gains team, focuses on companies that have a big impact abroad. Usually, these are the types of plays that the average American investor might overlook.
Looking to make an addition to his portfolio from the energy sector, Nathan considered Vermillion, Canadian oil-sands specialist Suncor Energy Inc.(NYSE:SU) , and global oil and natural gas giant ConocoPhillips (NYSE:COP). Though Nathan believes all three are exceptional values right now, Vermillion was the pick for his real-money portfolio.
The reasoning was actually quite simple, as Nathan stated: “I like it for its diverse production base, seasoned management, and dividend growth potential as its production expands over the next few years.”
One thing that differentiates Vermillion from other Canadian-based energy companies is that the company decided to go global back in the 1990s, and it has a wide range of properties in Canada, France, Ireland, Australia, and the Netherlands.
It seems that management has also created an ideal working environment, as the chief complaint found for the company on Glassdoor.com’s website is that employees like the company so much, they don’t leave, making it a little hard to wait for a promotion.
I think focusing on some these “soft” variables at a company is important. And when combined with the company’s healthy 4.5% dividend, I can see why Vermillion makes a compelling investment case right now.
Retail Opportunity Investment Corp.
Fool analyst Michael Olsen tends to focus on overlooked companies that offer up deals based on the difference between a stock’s price and its intrinsic value. His recent pick of ROIC stock is right down his alley.
ROIC got its start a few years ago, when a group of real-estate professionals collected capital and recruited proven real-state guru Stuart Tanz to lead the company as CEO. As Michael puts it, the company’s purpose is pretty simple: “accumulate a collection of hard-to-replace shopping centers in space-constrained markets.”