Warren Buffett's Chinese automaker, BYD (BYDDY.PK) has been the subject of much criticism over the past couple of years as profits have dropped about as much as possible, only a short time after Berkshire Hathaway (NYSE: BRK-A, NYSE: BRK-B) announced its 10% stake in the company. Many investors have gone as far as to say this was outside of Buffett's wheelhouse and that the investment may be one of his worst. Though I am inclined to disagree, it is difficult to argue with the tremendous loss in value for the beleaguered auto company. This week, however, brought new and interesting news to light. The company is in talks with the U.S. government to provide electric buses to cities, subsidized by Uncle Sam. Could this be a catalyst to set the company back on track toward growth?
Yeesh!
When I first caught wind of Buffett's investment in BYD, I was eager to drink the Kool-Aid. Charlie Munger described the company's founder, once the richest man in China, as a cross between Henry Ford and Thomas Edison. That's a strong endorsement, coming from one of the drier, harsher personalities in the investing world (which is itself also a rare accomplishment). The company was gaining a reputation for its batteries and low-cost autos while investors rushed in on the news of the world's greatest investor taking a 10% stake.
Best Warren Buffett Stocks To Watch For 2014: P.T. Telekomunikasi Indonesia Tbk.(TLK)
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.
Advisors' Opinion:- [By Richard Band]
Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia (population 237 million). As in most countries, the traditional wireline voice business is shrinking, albeit slowly. On the other hand, TLK’s broadband Internet subscriber rolls are estimated to have grown a torrid 50% or more in 2010. Cell phone usage is booming, too. In December, the company predicted it would add 10 million to 12 million new subscribers in 2011, on an existing base of 94 million.
I love TLK’s conservative balance sheet. Net debt to cash flow (EBITDA) stands at a trifling 0.23, versus a median ratio of 1.3 for the global telecom industry. In addition, thanks to TLK’s strong earnings performance in 2010, I look for a plump double-digit dividend increase this year. Based on my projected dividend rate of $1.43 for 2011, the stock currently yields 4.3%. Buy TLK at $36 or less.
Best Warren Buffett Stocks To Watch For 2014: Marylebone Warwick Balfour Grp(MWB.L)
MWB Group Holdings Plc owns and operates hotels and serviced offices in the United Kingdom. It operates 26 hotels with approximately 1,900 bedrooms under the brand names of Malmaison and Hotel du Vin that provide bars, brasseries, function and private dining rooms, meeting rooms of various sizes, champagne bars, spas, and gyms. The company also offers serviced offices that provide office spaces for small and medium enterprises, corporates, and other clients. It operates 65 centers that provide workstations with office space. MWB Group Holdings Plc was founded in 1994 and is headquartered in London, the United Kingdom.
Best Stocks To Own For 2014: Challenger Financial Services Group(CGF.AX)
Challenger Financial Services Group Limited operates as an investment management firm in Australia. The company operates as an issuer of annuities and a provider of listed and unlisted investment products and services to institutional and retail clients. It also provides various investment choices across a range of asset classes and investment styles, as well as operates as an investment manager. The company was founded in 1985 and is based in Sydney, Australia.
Best Warren Buffett Stocks To Watch For 2014: Graphic Packaging Holding Co (GPK)
Graphic Packaging Holding Company (GPHC), incorporated on June 21, 2007, is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. The Company is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The Company operates in two business segments: paperboard packaging and flexible packaging. The Company�� customers include beverage, food and other consumer products industries. The Company operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific. In December 2011, the Company combined its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft, LLC and Mid-America Packaging, LLC (collectively DNK), both wholly owned subsidiaries of Capital Five Investments, LLC (CVI). Under the terms of the transaction, the Company formed a company, Graphic Flexible Packaging, LLC (GFP), in which it owns 87% interest. On April 29, 2011, the Company acquired all of the assets of Sierra Pacific Packaging, Inc. (Sierra), a producer of folding cartons, beverage carriers and corrugated boxes for the consumer packaged goods industry. In January 2013, the Company acquired Contego Packaging Holdings, Ltd.
Paperboard Packaging
The Company supplies paperboard cartons and carriers. The Company provides a range of paperboard packaging solutions for various end-use markets, such as beverage, including beer, soft drinks, energy drinks, water and juices; food, including cereal, desserts, frozen, refrigerated and microwavable foods and pet foods; prepared foods, including snacks, quick-serve foods for restaurants and food service products, and household products, including dishwasher and laundry detergent, healthcare and beauty aids, and tissues and papers. The Company produces paperboard at its mills; prints, cuts and glues (converts) the paperboard into fol! ding cartons at its converting plants; and designs and manufactures packaging machines that package bottles and cans and, to a lesser extent, non-beverage consumer products. The Company also installs its packaging machines at customer plants and provides support, service and performance monitoring of the machines. The Company offers a variety of laminated, coated and printed packaging structures that are produced from its coated unbleached kraft (CUK), coated-recycled board (CRB), kraft paper and uncoated-recycled board (URB), as well as other grades of paperboard that are purchased from third-party suppliers. The Company manufactures corrugated medium and kraft paper for sale in the open market and internal use.
Flexible Packaging
The Company�� flexible packaging segment includes multi-wall bags, plastics, labels, and the Pine Bluff, AR mill. The Company is a supplier of flexible packaging in North America. Its products include multi-wall bags, shingle wrap, plastic bags and film for building materials (such as ready-mix concrete), retort pouches (such as meals ready to go), medical test kits, batch inclusion bags and film. Its end-markets include food and agriculture, building and industrial materials, chemicals, minerals, pet foods, and pharmaceutical products. Approximately 27% of the plastics produced are consumed internally. The Company�� label business focuses on heat transfer labels and lithographic labels. The Company operates label plants, which produce labels for food, beverage, pharmaceutical, automotive, household and industrial products, detergents, and the health and beauty markets.
The Company competes with MeadWestvaco Corporation and Klabin Company.
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