Pfizer (PFE) is in a period of transition right now in an effort to reposition itself as the leader in the pharmaceutical manufacturing industry. Its balance sheet and value in the market is less than stellar so it is an ideal time for investors to consider Pfizer for long-term investment opportunities. Pfizer is divesting its non-essential models in order to refocus on its core functions regarding high margin pharmaceutical manufacturing.

The transition period is needed due to Lipitor’s decline in sales numbers after the patents expired in 2011. Pfizer has a large pipeline of opportunities and positive cash flow available to buy back shares or focus on effective acquisitions to help increase its success in gaining more market share in the industry.

This is the optimal time to buy shares in Pfizer as the stock price has been trending upwards recently. With the transition underway, if it’s successful, this may be the lowest stock price available for investors interested in Pfizer. The price has currently been around $22, the 52 week range has been from $16 to $23. This is the lowest price available among the major pharmaceutical brands like Merck (MRK), Johnson & Johnson (JNJ), Bristol-Meyers Squibb (BMY), and Abbott (ABT).

The 50 day and 200 day moving average are right around the current stock price at over $22 and over $21, respectively. The beta is less than one while net and operating margin are adequate at over 14% and over 29%, respectively, even though they have decreased since 2011.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.

With a strong presence in the oil and gas industry, starting new wells and profiting from existing ones, and with a large purse full of money, SandRidge Energy (SD) is set to grow by leaps and bounds. The company is on a steady course of progression, building a business that will make investors happy for years to come. I believe SandRidge to be a smart investment based on the company’s history of building up capital for acquiring productive plays and for its expansive inventory of drilling locations. Currently, the company has 42 rigs operating that include five drilling saltwater disposal wells. During the first quarter of 2012, SandRidge averaged 36 operating rigs and drilled 250 wells. A total of 240 gross (213 net) operated wells were completed and brought on production during the first quarter of 2012. That aggressiveness alone makes SandRidge a winner, but thankfully, there is more to this company.

While some may lean toward the big-cap oil producers that are also large producers of natural gas, such as Exxon Mobil (XOM), Chevron (CVX), and Anadarko Petroleum (APC), SandRidge is a little more nimble. The company can bend more with the times and at a faster pace than the big dogs. Until gas prices took a dive, the company was formally focused on natural gas development in the East Texas Basin and West Texas. SandRidge recently diversified its production base to oil through acquisitions in the Permian Basin and leases in the mid-Continent area, focusing on the Mississippian formation through its system of horizontal drilling.To continue reading, click here.

Pfizer (PFE) is the world’s largest research based pharmaceutical company by sales. In addition to its core human healthcare business, it has leading positions in animal health care and infant health, as well.

I was looking forward to its first quarter 2012 earnings as the company’s top selling drug, Lipitor, lost patent protection in the fourth quarter of 2011.

Pfizer’s issue with losing top selling drugs to patent expiration is hardly unique. Since late in the last decade, many top selling drugs have fallen to generic competition among all large drug makers. A curious thing is pharmaceutical patents. Copyrights for books or movies don’t expire. Patents for widgets last forever. But drug companies aren’t selling widgets or entertainment. They are peddling, and profiting mightily, by selling health care. Patent rights are provided for 20 years from the time the medication is first identified in the research phase. Never mind that it can take eight years or more for the FDA to approve a drug. There are mechanisms to extend the 20 years for a few more, and the industry is rife with litigation between generic makers and research drug manufacturers.

Due largely to an anticipated steep fall in Lipitor based revenues, Pfizer’s revenue in the first quarter of 2012 fell 7% to $15.4 billion. GAP profits were $1.79 billion, or $0.24 per share. The year ago GAP profit was about $2.2 billion, or $0.28 per share. Excluding special items, earnings in the 2012 first quarter were $0.58, per share, or two percent above analysts expectations for the quarter. All in all, a solid performance given the conditions. To continue reading, click here.

Jerry Yang, one of Yahoo’s (YHOO) founders, leaves Yahoo earlier this year as many investors breathe easier. Yahoo was courted by Microsoft (MSFT) four years ago to the tune of $45 billion. Jerry Yang apparently felt it was not enough at the time. Now Mr. Yang is pursuing other interests.

Yahoo recently lost other key senior executives and is laying off 2,000 employees. Scott Thompson, CEO, is actively structuring the company in a different direction. Analysts agree something needs to change. Yahoo traditionally is a culture of consensus. It is difficult to operate with committees that focus on monetizing an idea. It slows the process down. It is time to break out of the mold, open the way for more creativity, and allow some dissension in the ranks.

Other analysts feel Yahoo. needs to look at the sales organization and upgrade technology to more effectively meet the needs of its 700 million users. One way to monetize traffic might be through acquisitions of sites like TripAdvisor (TRIP), Yelp (YELP), HomeAway (AWAY), Zillow (Z), OpenTable (OPEN) or StockTwits. Yahoo’s traffic would enhance not only the user’s experience but also the site numbers of all concerned.

Any of those mergers are in alignment with the new direction of the consumer commerce business unit. The new commerce business unit is focusing on delivering engaging and personalized consumer commerce experiences that connect consumers to marketers and merchants. Yahoo! has a tremendous opportunity to transform commerce on the internet. To continue reading, click here.

In the Barrick Gold (ABX) 2011 annual report, President and CEO Aaron Regent noted that (pdf) while the value of the oldest gold bullion ETF – the SPDR Gold Trust (GLD) – had increased by 260% since the ETF went public in 2005. Barrick’s net income had increased by 900% and operating cash flow was up by 500%. Unfortunately for Barrick Gold shareholders, the share price has gained only 72% over the seven year time period and investors have picked up another 10% or so in dividends. One way to look at the under-performance by Barrick shares is that there is a significant amount of unrealized value in the company’s gold mining operations.

As the world’s largest gold mining company, Barrick benefits significantly from economies of scale. The company’s cash production cost per ounce of $460 in 2011 was one of – if not the – lowest in the industry. In comparison, the second largest gold mining company, Newmont Mining (NEM) reported a cost of $591 per ounce in 2011. Gold Corp (GG) – considered to be one of the most efficient gold producers – reported cash cost per ounce of $534 for the year. Going into 2012, cost for the mining companies are expected to increase somewhat dramatically – at least $100 per ounce – and the cost advantages of Barrick Gold may turn out to be significant, depending on what happens with the price of gold.

The combination of very good growth numbers in 2011 – revenue up by 30% and adjusted net income up by 33% – and a declining share price over the last year has left Barrick Gold trading at just 8.3 times the consensus 2012 earnings forecast. 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.

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.

Boeing (BA) operates in the aerospace and defense industries. It has grown significantly over the years to become one of the largest aircraft manufacturers in the world. Investors have found Boeing to be an attractive option for returns and growth. In this article, I will analyze the financial aspects and performance indicators of this company which have allowed it to become such a strong contender in the stock market.

Boeing has been showing signs of great stability even during the global financial crisis. Sales and income of the company were growing and the investors were getting high returns. This is basically one of the reasons why I have found Boeing to be a good investment option. There are few stocks which can offer high yields and steady returns to investors even when the global economy is facing problems. The financial highlights from the last year suggest that the company will now move steadily forward once the market stabilizes itself.

Market capitalization at the current price is almost $6 billion and the average trading volume is nearly 5 million shares. There are approximately 746 million shares outstanding in the market. Earnings per share (EPS) are more than $5 while the price-to-earnings (P/E) ratio is above 14. The dividend yield is above 2% and the last dividend paid by the company was 44 cents per share. The dividend yield and the earnings are what basically attracted investors in the stock market. Boeing has announced dividends regularly and returns have been increasing with growth in sales and income. To continue reading, click here.

PepsiCo (NYSE: PEP) has a strong presence in the world beverage market, but unbeknownst to many is the fact that PepsiCo produces roughly half of its revenue each year through its foods division that owns popular brands such as Doritos, Quaker, Frito-Lay and Tostitos. While PepsiCo competes directly with the beverage behemoth Coca-Cola (NYSE: KO) and the smaller beverage giant of the Dr. Pepper Snapple Group, it also competes with Kraft Foods (NYSE: KFT) and Nestlé in the foods market. The company’s versatility and presence in multiple markets provides it with an economic moat that reduces the risk of investing in the company and secures long term returns for its shareholders.

PepsiCo maintains solid footing in the carbonated beverage industry and has performed well against its main rival, Coca-Cola with its seasonal Mountain Dew offerings that vary each season and its Pepsi Cola product. As consumers have begun to become more health conscious and move away from heavily sugared and carbonated soft drinks, PepsiCo has shifted its focus into its Lipton Tea and Tropicana brands, which provide an assortment of teas and juices. The Dr. Pepper Snapple Group competes with PepsiCo in the tea segment with Coca-Cola pushing back against the Tropicana line with its Minute Maid brand.

A recent probe by the Food and Drug Administration into both Minute Maid and Tropicana may end up hurting both PepsiCo and Coca-Cola, however, after traces of fungicide were found in each brand’s orange juice products. While the initial reports state that the fungicide is nontoxic, the reports themselves will continue to push health conscious consumers away due to the growing trend toward natural foods and beverages with minimal additives. The Dr. Pepper Snapple Group has been taking advantage of this shift by advertising its All Natural line of products.

Where PepsiCo has strength is in its food brands, which compete with Nestlé and Kraft Foods in grocery stores across the globe. Its snack brands also have exposure in convenience stores and gas stations as impulse buys for travelers to snack on over a long drive. PepsiCo plans to make more moves toward providing healthier food as well and already has a footing in the market with its Quaker brand of foods and snacks.

PepsiCo has excelled against its competitors in both the food and beverage markets, showing revenue growth of 13% over the last year which was slightly higher than Kraft Foods’ 11% and well above the 5.2% and 4.9% growth shown by Coca-Cola and the Dr. Pepper Snapple Group, respectively. Its acquisition of the Russian dairy and juice company, Wimm-Bill-Dann has allowed PepsiCo to make a play in Russia and Asia in both the food and beverage markets, widening its economic moat.

The acquisition added $12.6 billion to PepsiCo’s debt load, but its increase in assets has justified its liability. PepsiCo now has $75.3 billion in assets and carries $58.1 billion in liabilities. Its profits have risen over the last three years from $5.1 billion in 2008 to $5.9 billion in 2009 and $6.3 billion in 2010. In the first three quarters of 2011, PepsiCo reported net revenue of $4.9 billion, on track to continue its steady incline.

PepsiCo provides a quarterly dividend of $0.51 per share, for a total of $2.06 per share over the last four quarters. Its quarterly payout provides more opportunity to compound returns for income investors and it is currently paying out at a ratio of 0.52 with a projected yearly yield of 3.2%. I believe that despite its declining carbonated beverage sales, PepsiCo has established enough of a safety net here to protect its dividend and continue to provide returns to its shareholders.

Kraft Foods is the largest threat to PepsiCo in the food market, but I believe that PepsiCo has a broad range of products that allow it to compete and its expansion into the Russian and Asian markets will protect it against any pressure that it receives from Kraft. Nestlé has an extremely strong presence in the Chinese coffee market, which it plans to solidify even further in 2012, but I don’t believe that Nestlé poses a great threat to PepsiCo’s expansion into the Asian market due to PepsiCo’s ability to offer a variety of food products in addition to its beverages.

Over the last three years, PepsiCo stock has grown in value from $47 per share to $63 and I believe that its wide economic moat will protect it against the incursions it will undoubtedly face from the Dr. Pepper Snapple Group in the natural tea and juice market and the opposition it will meet against Nestlé when it expands into China. PepsiCo shows itself to me as a lower risk buy with long term growth potential and consistent dividend gains that can be reinvested for a stronger position in the company.