Based on widely-touted substitution of mobile devices for traditional PCs, investors are presented with the following question: is Dell (DELL) trading at a value discount in the light of bad news, or is it a value trap which has suffered irreversible damage in the midst of a secular market change? At current price levels, is there an advantage to investing in the battered Dell, the resistant Hewlett-Packard (HPQ), or the triumphant device makers like Apple (AAPL) and Google (GOOG)?

More Devices and Less PCs

Mobile device sales are seen as direct competition for desktop and laptop computers. Jim Cramer recently said, “That’s the reason why notebooks and netbooks seem to be going the way of the typewriter.” Mr. Cramer seems to be exactly right in this assessment. Mobile devices are not purchased in addition to new computers, but as substitutes for new computers.

This trend was evident earlier this week when Dell’s quarterly results did not meet expectations. As a result, Dell shares plummeted over 15%. The sentiment that Apple’s gains in mobile devices are the cause of Dell’s lost revenues is common among Wall Street analysts.

Hewlett-Packard is another traditional PC maker which announced radical restructuring which will lay off as much as ten percent of the firm’s employees. These deep cuts will slash 27,000 jobs over the next two years. Though Hewlett-Packard is still the world’s largest PC maker, its dramatic reinvention of itself demonstrates that the industry is changing. HP has essentially admitted that these are drastic times which require drastic measures.To continue reading, click here.

Netflix (NFLX) provides and sells subscription services for TV shows and movies, offering customers the choice of receiving DVDs by mail, or streaming its available content through various smart devices in the home. Formerly a popular, high-flying growth stock, peaking near $300 per share in July of 2011, the company and the stock have fallen on hard times, and it currently trades around $73 per share. As with all technology stocks, the questions for Netflix are trifold. First, how does it compare to peers? Second, when will its current way of doing business be replaced by the next best thing? Third, how will the company adapt to the changing landscape? Let’s attempt to answer each of these questions, in turn.

Competition, a quick recap

The only direct, apples-to-apples, competition to Netflix is the former video store giant, Blockbuster, now owned by DISH Network (DISH). Both DISH Network and Netflix offer not only streaming entertainment content, but also DVDs through the mail. The Blockbuster division of DISH Network offers the extra component of personally exchanging DVDs in the dwindling number of Blockbuster branded storefronts, but I don’t expect that to be a lasting part of its business model due to unsustainably high overhead.

Coinstar (CSTR), the owner of the unmistakable self-serve DVD kiosks branded as Redbox, is a fringe competitor. Not offering streaming content, users of Redbox rent and return DVDs via roadside kiosks for $1 per day.To continue reading, click here.

Microsoft (MSFT) is solid undervalued long-term investment on the market that could increase significantly in stock price within the next few years. Microsoft has innovative technologies on the horizon to regain its leadership in the tech sector once again.

Microsoft is also forming powerful partnerships with industry leaders in order to compete with Apple (AAPL) and Google (GOOG) as the tech industry evolves. Its expansive influence in multiple industries along with its proven success for decades from increased capital and revenues makes Microsoft one of the most favorable investments on the market. The stock price has been relatively flat for some time, but Microsoft is making plans that could certainly double, if not triple, its stock price within the next four years. Microsoft is clearly undervalued at its current stock price of approximately $30 per share; this is an opportune time to invest in Microsoft now before the price increases to reflect its true value.

Its stock price has ranged from around $23 to under $33 for the past year. Microsoft has increased revenue to over $55 billion, which is a 6% increase from last year. It is essentially free of long-term debt and has a significant amount of capital as well. Microsoft has increased earnings by over 9% from 2008 into 2011. A net income margin of 30% from 2008 to 2012 also shows promise and sustainability, despite the flat stock price. Microsoft has a market cap of over $250 billion and dividend yield over 2%, even without the innovations and advantageous partnerships on the horizon; this is a promising long-term investment as the current stock price.To continue reading, click here.

It isn’t often that overall bad market news (even if it is packaged nicely) may spell good news from analysts, but REITs haven’t been following the rules since they became popular. ARMOUR Residential REIT (ARR), with its focus on hybrid adjustable, adjustable and fixed rate residential mortgage-backed securities (RMBS) guaranteed by US government agencies or sponsored entities, has been a strong player for its external management company, ARMOUR Residential Management LLC, since 2009.

ARMOUR has been reporting strong dividends and great growth potential along with other mortgage REITs for a while now, even in the worst parts of this current recession. These showings haven’t always been earth-shattering, but positive performance in a bad economy, even if just relative to other stocks, is always noteworthy.

Unless you’ve been hiding under a rock, you have likely heard the March jobless reports from Gallup were not very good. In fact, many experts are reporting they were downright bad, as on the surface the unemployment rate (and its related numbers) went down a little, but did not meet expectations.

There is always the sticky matter of those who give up looking for full-time work and work instead for themselves at a lower level. I have had to care for a parent with Alzheimer’s and cannot maintain an outside full-time job where I am required to be in the office (which was required as a business analyst), so I have worked since December in a freelance capacity. To continue reading, click here.

A person would have to have been living under a rock to not know that oil investments are a good thing. We’ve been dependent on oil for hundreds of years, and until technology drastically changes, we will be dependent for many more years to come. The issue isn’t that oil is not a good investment.The issue is determining which oil companies are the winners and which to stay away from. I will invest in the former and believe that hands down, ConocoPhillips (COP) is a winner.

There are several reasons ConocoPhillips is a winner. But first, it is not because of everyone else getting on the bandwagon. Although, when you see some smart players such as Warren Buffett buying into this company (Berkshire (BRK.A) began accumulating shares of Conoco in 2008, at one point owning as many as 84 million shares), it does make you stop and think. Just because 39 hedge funds reported in late 2011 that they own ConocoPhillips (to the tune of roughly $3.5 billion) is not simply another reason to jump on board. No, the real reasons are always in the numbers.

ConocoPhillips, the third-largest U.S. integrated energy company based on market capitalization, and the largest refiner in the United States, operates in over 30 countries and holds around 8.4 billion barrels of oil equivalent in proved reserves. The company recently announced that it will begin selling assets from the company’s upstream divisions, exiting assets that yield low margins or lack any upside potential, to raise $10 billion in 2012. To continue reading, click here.

I, like many investors and homeowners, was affected by the real estate market collapse that started in 2007. As a result of this real estate crisis, many publicly traded companies in the real estate industry saw their earnings and market cap evaporate, which drained the wealth of many private investors and investment institutions. However, looking forward long-term, I envision the real estate market recovering and creating lucrative investment opportunities once more. The following is an analysis of Annaly Capital Mangement (NLY), a stock in the REIT industry. Will this stock thrive looking forward?

Annaly Capital Management owns, manages and finances a portfolio of real estate investments. It has a market cap of $15.66 billion and is currently trading close to $16. The stock has increased about 4 percent since last October after declining 15 percent in late September after decreasing the dividend to $0.57 from $0.60 the previous quarter. Most recently, the stock has announced another dividend decrease for Q1 in 2012. This is a dividend cut of $0.02 from the previous quarter. The stock had no major fluctuations because most investors and analysts were expecting a higher cut in dividends, thus the $0.02 dividend cut is seen as good news. With a beta of 0.32 the stock is not very volatile, primarily due to its diversified investments.

Annaly Capital has $994 million in cash and short-term investments and $85.44 billion in short and long-term debt, with 99 percent of this debt being short-term.This implies management is funding day-to-day operations with short-term debt, which can be dangerous if there are serious fluctuations in revenue. To continue reading, click here.

American Express (NYSE: AXP) has made a name for itself as the most successful closed loop credit card providers in the United States, but achieved its success primarily because it was held out of the open loop market until recently. Its recent entry into the open loop credit card market has placed pressure on the credit giants of Visa (NYSE: V) and MasterCard (NYSE: MA) and cost the two giants billions of dollars to American Express, which has come at no better of a time— when the financial markets struggled and creditors were pulled into the undertow. Through its transition into the open loop market, American Express has the opportunity to become more successful than ever anticipated.

American Express got its start as a closed loop card that was very similar to the Diner’s Club card. Its famous green card has been its flagship through its existence and the creditor was originally an exclusive card that could only be used at merchants who were enrolled in the program. American Express cards could only be offered by banks that it had agreements with, and while it historically offered cards to more credit worthy members than its competition, its existence in the closed loop market hindered it against Visa and MasterCard, which operated on the open loop network.

The open loop system varies from the closed loop network in that it requires cooperation between banks and funds transfers while the closed loop network has traditionally been limited to local businesses. American Express initially met heavy resistance when it made its first attempt to enter the open loop market due to agreements that both Visa and MasterCard had with banks that shut those banks out from doing business with their competitors. In 2004, a court ruling in favor of American Express and other previous closed loop creditors allowed American Express to conduct business with the same banks that Visa and MasterCard had been, giving the company an opportunity to expand into a larger market.

Four years after the antitrust ruling in 2008, American Express won a lawsuit against both Visa and MasterCard for damages of $2.1 billion from Visa and $1.8 billion from MasterCard. The settlements were structured into quarterly payments that brought American Express $880 million per year over the last three years. American Express was not the only credit card company to file a suit against Visa and MasterCard and Discover (NYSE: DFS) benefited from the antitrust ruling with a $2.8 billion settlement of its own.

Both American Express and Discover are in an advantageous position heading into 2012 after having received billions of dollars during an economic slump that both companies needed. Visa and MasterCard, on the other hand, have been weighed down by the settlements over the last three years. Now that Visa and MasterCard have made good on their obligations, however, the pressure is off and they are able to challenge American Express and Discover without a handicap.

All four credit companies have positive stock histories over the last three years. American Express has grown from $12 per share to $52 while Visa has moved from $50 per share to $114, MasterCard has risen from $158 to $399 per share and Discover has made gains over the same period from $5 to $30. Visa is the largest contender and has a market cap of $76.8 billion, which is followed closely by American Express, which has a cap of $61.5 billion. MasterCard maintains a market cap of $50.5 billion and Discover is the smallest of the group with a cap of $15.7 billion.

American Express has increased its profit from $2.6 billion in 2008 to $4 billion in its last fiscal year and added $4.4 billion in equity over the same time period. Having had an extra $880 million per year to play with over the last three years has put American Express in a position to strengthen itself against its competitors and it is insulating itself pretty well against both Visa and MasterCard. I believe that 2012 will be a positive year for American Express and that it will begin to move into a position to challenge Visa over the next two or three years for the top position in the credit card market.

Visa and MasterCard haven’t been defeated, but their past practices have come back to haunt them and the settlements with American Express and Discover have allowed each of the closed loop cards to pressure Visa and MasterCard in new ways. American Express stands out as the most solid investment here due to its history of offering cards to more credit worthy members and having less customers default on payments as a result. If you are looking to diversify your portfolio in the financial sector, however, all four of these companies have the opportunity to grow significantly over the coming years.

It can often be difficult for investors to pursue opportunities associated with capitalizing on dividend yield when their overall investment is at risk based upon company performance and economic trends. Rather than risk your financial investment for a high-dividend yield, look to take advantage of real dividend growth from companies that are promising strong financial growth in the 2012 year. The following stocks come highly recommended with company prices and statistics derived from finviz.com.spe

Flowers Food Inc. (FLO) – When Flowers released its third-quarter numbers for 2011, it made the announcement that the 2011 sales growth for the company was in line with the guidance of 7% to 11%. It was also indicated that the outlook for the 2012 year would be within growth targets of 5% to 10%. This regular pattern of meeting expected growth throughout the year helps encourage my opinion that Flowers Food is a high-quality company for investment pursuit, especially when you recognize the real dividend growth. As a result of the continuing success found with Flowers, its board of directors has been able to match the promised annual dividend rate of $.60 per share in 2011 as announced in November of 2011. While the dividend rate for this year has not been announced yet, the high-dividend yield of 3.03% is promising.

General Dynamics Corp. (GD) – In the wake of expected cuts to defense contracts it would seem unwise to invest into a defense based company such as General Dynamics. To continue reading, click here.

In this article, I will discuss five stocks which have relatively better valuations than their competitors. Due to low valuation, I expect these stocks to offer better returns than their peers. These days investors are worried about getting caught in value traps. However, the analysis below shows why there is value in these names.

People’s United Financial, Inc. (PBCT) is a bank holding company for People’s United Bank. Shares of the company are currently trading near $13 per share and have traded between a narrow range of $10.5 and $13.96 per share. The company has a relatively low beta of 0.44, indicating that the stock is not volatile. People’s United Financial has reported a dividend yield of 4.7%.

Bank of America (BAC) is a competitor of People’s United Financial. Currently, People’s United Financial reported a quarterly revenue growth of 39.8% and an operating margin of 29.4%. On the other hand, Bank of America reported a quarterly revenue growth of 17.6% and an operating margin of 4.5%. While People’s United Financial reported a price-to-equity ratio of 23.9 times, Bank of America reported the same value at 725 times, indicating that its shares are significantly more expensive than that of People’s United Financial. The company has a lower 5 year expected price-to-earnings-to-growth ratio of 0.8 times than the industry average of 1.65 times. This indicates that it is cheaper than what is being offered by most of its competitors. People’s United Financial has one of the higher dividend yields among its competitors.To continue reading, click here.