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 Heritage-Crystal Clean (Nasdaq: HCCI ) .
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.
Hot High Dividend Companies To Buy Right Now: Gannett Co. Inc. (GCI)
Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.
Advisors' Opinion:- [By Dan Caplinger]
Gannett (NYSE: GCI ) will release its quarterly report next Monday, and investors are unusually enthusiastic about the company's prospects. Although a big acquisition raised awareness of Gannett's businesses outside the struggling newspaper industry, it's still unclear how much of a boost it will produce for Gannett earnings growth in the future.
- [By Monica Gerson]
Gannett Co (NYSE: GCI) is expected to report its Q3 earnings at $0.41 per share on revenue of $1.27 billion.
VMware (NYSE: VMW) is projected to report its Q3 earnings at $0.82 per share on revenue of $1.29 billion.
Top 5 Media Companies To Buy Right Now: News Corporation(NWSA)
News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.
Advisors' Opinion:- [By WALLSTCHEATSHEET]
News Corp. provides a wide range of media and information services to consumers and companies interested in the latest and greatest around the world. The stock has been on a strong run in recent years but is now seeing a slight pullback that may take some time. Over the last four quarters, earnings and revenue figures have been improving, however, investors have had mixed feelings about their reports. Relative to its peers and sector, News Corp. has been a year-to-date performance leader. Look for News Corp. to continue to OUTPERFORM.
Top 5 Media Companies To Buy Right Now: Liberty Global Inc.(LBTYA)
Liberty Global, Inc. provides video, broadband Internet, and telephony services primarily in Europe and Chile. The company offers broadband services over cable distribution systems, including video, broadband Internet, and telephony; and video services through direct-to-home satellite, or through multichannel multipoint distribution systems. Its analog video services comprise basic and expanded basic programming; and digital cable services include basic and premium programming, digital video recorders, and high definition programming, as well as pay-per-view programming, such as video-on-demand and near video-on-demand. In addition, the company offers voice-over-Internet-protocol and circuit-switched telephony services, as well as mobile telephony services using third-party networks. Further, it owns programming networks that provide video programming channels to multi-channel distribution systems owned by the company and the third parties. As of December 31, 2011, the com pany owned and operated networks that passed 33,262,100 homes; and served 18,405,500 video subscribers, 8,159,300 broadband Internet subscribers, and 6,225,300 telephony subscribers. Liberty Global, Inc. was founded in 2004 and is based in Englewood, Colorado.
Advisors' Opinion:- [By Sam Robson]
LONDON -- In the latest edition of this long-running story, it has been suggested that�Vodafone� (LSE: VOD ) (NASDAQ: VOD ) could use a substantial amount of the money it would receive from selling its stake in Verizon Wireless to fund a takeover of�Liberty Global� (NASDAQ: LBTYA ) .
- [By Alex Webb]
Kabel Deutschland is a key part of Vodafone�� expansion strategy as the carrier looks for ways to boost revenue and lock in customers with Internet and television offers in addition to wireless service. Kabel Deutschland is the biggest cable company in Germany, Vodafone�� largest market, and had drawn a rival bid from John Malone�� Liberty Global Plc. (LBTYA)
- [By Amy Thomson]
Vodafone has already expanded beyond wireless service, and in June beat John Malone�� Liberty Global (LBTYA) Plc to take over Germany�� Kabel Deutschland Holding AG. (KD8) Vodafone and Verizon accelerated talks on the stake sale after the Kabel Deutschland offer, which put additional pressure on the British company�� finances, a person familiar with the matter said.
- [By Lauren Pollock]
Liberty Global(LBTYA) PLC has agreed to sell substantially all of its international content division Chellomedia to AMC Networks Inc.(AMCX) in a deal worth $1 billion, allowing the cable company to focus on its core markets.
Top 5 Media Companies To Buy Right Now: CBS Corporation(CBS)
CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company?s Entertainment segment distributes a schedule of news and public affairs broadcasts, sports, and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; produces and distributes theatrical motion pictures across various genres; and operates online content networks for information and entertainment. Its Cable Networks segment owns and operates multiplexed channels that offers subscription program services, including recently released theatrical feature films, original series, documentaries, boxing, mixed martial arts and other sports-related programming, and special events; and CBS College Sports Network, a 24-hour cable program service related to college sports. This segment also owns and manages Smithsonian Networks, which operates Smithsonian Channel, a basic cab le service in the United States. The company?s Publishing segment publishes and distributes adult and children?s consumer books in printed, audio, and digital formats. Its Local Broadcasting segment owns 29 broadcast television stations; owns and operates 130 radio stations in 28 U.S. markets and related online properties; and owns local Websites that combine television and radio local media brands online to provide the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews. The company?s Outdoor segment sells advertising space on various media, including billboards, transit shelters and other street furniture, buses, rail systems, mall kiosks, stadium signage, and in retail stores. CBS Corporation was founded in 1986 and is headquartered in New York, New York.
Advisors' Opinion:- [By Rick Aristotle Munarriz]
CBS"NCIS" is CBS' top rated drama. From left: Mark Harmon, guest star Colin Hanks, and Pauley Perrette. The market was loving CBS (CBS) on Tuesday, but don't be surprised if the love affair doesn't last. Shares of the broadcasting giant soared nearly 5 percent after it resolved a month-long dispute with Time Warner Cable (TWC) that had kept its channels off the air for the cable provider's 11.7 million customers. But there will be a price to pay for being unavailable to so many cable subscribers for so much of this summer, and we're not just talking about the immediate hit in the current quarter. Customers are getting tired of the games that content providers pay, and CBS is feeding the resentment as it tries to get subscribers to pay more for CBS, The CW, and lesser watched channels including Smithsonian Channel and TVGN. We don't know the terms of new carriage deal, but we know who's actually going to be paying the price: The average Time Warner Cable video customer's bill is up 8.5 percent over the past year. Is it any wonder why the pay TV industry is starting to lose customers? Audiences Are Thinning Out Industry analysts at UBS predict that cable and satellite television providers will lose 250,000 net subscribers this year. It will be the first year that the pay TV industry suffers an annual decline. CBS can argue that it's better off than its sibling Viacom (VIA), which takes in a more significant level of its television revenue from cable subscription fees. CBS has its namesake broadcast channel and more than two dozen local stations. A lot of people cutting the cord to save money will simply invest in HD antennas that they can use to access over-the-air channels including CBS. Well, it's not that easy. Local broadcast advertising was actually one of the few CBS businesses to see its profits decline in its latest quarter. The company blamed the decline on the loss of election-year political ad spending, but could it be that folks just aren't as p
- [By Paul Ausick]
The recent spat between Time Warner Cable and CBS Corp. (NYSE: CBS) that resulted in a month-long blackout of CBS stations from Time Warner in several markets over a dispute on retransmission fees is yet another signal that traditional cable and satellite providers may be suffering more than we think. CBS was reportedly demanding a payment of $2 a month per subscriber and Time Warner was offering $1 or less.
- [By WALLSTCHEATSHEET]
Healthy EPS growth is likely for CBS. Revenue has been inconsistent on an annual basis, but it has been impressive over the past�two quarters. Margins and cash flow are strong, and CBS is always looking to make strategic acquisitions to help fuel growth. Another positive is that analysts love the stock: 22 Buy, 7 Hold, 0 Sell. The biggest potential threat is a steep market correction (CBS isn�� very resilient). For those looking for something safer, Disney is a much better option. For those looking to ride the momentum wave, CBS is an OUTPERFORM.
- [By Rich Duprey]
Mass media giant�CBS� (NYSE: CBS ) �announced yesterday�its second-quarter dividend of $0.12 per share, the same rate it paid the last three quarters, after raising the payout 20%, from $0.10 per share.
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