Best Cheapest Companies To Buy Right Now

It might not be obvious to the casual observer, but right now, today, Xerox (NYSE: XRX  ) stock offers one of the best values available in the IT industry. Why?

Three reasons.

Xerox stock is cheap
When you stack up Xerox stock against two of its rivals in the international "business process outsourcing" industry -- Accenture (NYSE: ACN  ) and IBM (NYSE: IBM  ) -- it's clear that Xerox is one of the cheapest options out there. Its 9.7 price-to-earnings ratio falls 32% below the P/E of IBM. It sells for a whopping 45% discount to the price of a share of Accenture.

And as is so often the case, with a low valuation comes a big boost in dividend yield. Xerox stock currently yields a tidy 2.6% dividend. That's as compared with Accenture and IBM, both of which yield less than 2%.

Best Cheapest Companies To Buy Right Now: S&W Seed Company(SANW)

S&W Seed Company engages in contracting the production of alfalfa seed varieties, processing the seeds, and marketing the certified seed to agribusiness firms and farmers worldwide. It also involves in the production of stevia leaf. The company primarily offers high fall dormancy (FD) alfalfa seed varieties, as well as markets and sells other varieties, including FD 7, 6, and 4 varieties. It sells the seed primarily to dealers and distributors who, in turn, sell primarily to hay and dairy farmers who grow hay for dairy cattle and other livestock; and through brokers. The company was founded in 1980 and is headquartered in Five Points, California.

Advisors' Opinion:

• [By Peter Leeds]

  A growing population, seven billion, and an increasingly sophisticated diet among China and other developing nations have created rapidly increasing global food demand.  According to Food and Agriculture Organization (FAO) data, China’s per capita intake of calories, protein, and fat were well below the world average in 1975, but are now well above the world average.  Expect this trend to accelerate in China, as well as India, Pakistan, Indonesia, and other developing nations. 

  The problem is that there's not even close to enough food, while challenging growing environments routinely wipe out crops.

  That's where S&W Seed (SANW) comes in.  They breed and develop proprietary alfalfa seed varieties that grow in harsh climates.  Global demand for SANW's products just keeps soaring higher.  We're expecting their financial strength and solid operational position to translate into further gains in its share price this year.   The Peter Leeds price outlook:  $8.75.

Best Cheapest Companies To Buy Right Now: Provident Energy Ltd. (PVX)

Provident Energy Ltd. engages in the natural gas liquids (NGLs) infrastructure and marketing business in Canada and the United States. The company involves in the extraction, processing, storage, transportation, and marketing of NGLs, as well as offers these services to third party customers. It also provides fractionation, storage, NGL terminalling, loading, and offloading services. The company was founded in 1993 and is headquartered in Calgary, Canada.

Best Cheap Stocks To Invest In Right Now: Devro Int(DVO.L)

Devro plc, together with its subsidiaries, engages in the production and sale of collagen casings for the food industry in Europe, the Americas, and the Asia/Pacific. The company offers edible collagen and non-edible collagen casings under the Devro, Coria, Cutisin, Edicol, Ralex, and Devro Medical brand names. It also manufactures and markets collagen films, collagen gel, plastic casings, and purified collagen raw materials for medical and cosmetic use. In addition, the company distributes various related products, principally cellulose, fibrous, and plastic casings. It offers its products primarily to sausage producers, consumers, and retailers, as well as to food processors and local specialists making handcrafted products through a network of distributors and agents. Devro plc is headquartered in Chryston, the United Kingdom.

Best Cheapest Companies To Buy Right Now: Canarc Resource Cp Com Npv(CCM.TO)

Canarc Resource Corp., a gold exploration company, engages in the acquisition, discovery, exploration, and development of precious metal properties in Canada and the United States. Its principal property includes the New Polaris gold mine project located in north-western British Columbia, Canada. The company also has an option to purchase a 100% interest in the Tay-LP gold property located within the Tintina Gold Belt in south-central Yukon, Canada. Canarc Resource Corp. was founded in 1987 and is headquartered in Vancouver, Canada.

Best Cheapest Companies To Buy Right Now: Hornbeck Offshore Services(HOS)

Hornbeck Offshore Services, Inc., through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels, and a shore-base to provide logistics support and specialty services to the offshore oil and gas exploration and production industry primarily in the United States and Gulf of Mexico. It operates in two segments, Upstream and Downstream. The Upstream segment owns and operates fleets of the U.S.-flagged OSVs that support deepwater and ultra-deepwater exploration, development, production, construction, installation, maintenance, repair, and enhanced oil recovery requirements of the oil and gas industry. This segment also owns conventional OSVs, work class ROVs, and a shore-base facility located in Port Fourchon, Louisiana. In addition, it provides vessel management services for other vessels owners, which include crewing, daily operational management, and maintenance activities. The Downstream segment owns and operates a fleet of ocean-going tug s and tank barges that transport petroleum products, primarily in the northeastern United States, the Gulf of Mexico, the Great Lakes, and Puerto Rico. These tugs and tank barges provide coastwise transportation of refined and bunker grade petroleum products, as well as offer other services, including the support of deepwater well testing and other applications for refining, marketing, and trading companies. As of December 31, 2009, Hornbeck Offshore Services owned and operated a fleet of 47 new generation OSVs, and 9 double-hulled barges and 10 ocean-going tugs. The company was founded in 1997 and is headquartered in Covington, Louisiana.

Advisors' Opinion:

• [By Squeeze Ideas]

  Shipping Industry. Market cap of $769.43M. Short float at 19.13% (equivalent to 5.72 days of average volume).

  Net Income grew by 32.17% ($18.2M vs. $13.77M y/y), while Operating Cash Flow grew by 46.44% ($52.28M vs. $35.7M y/y) (comparing 3 months ending 2010-09-30 vs. 3 months ending 2009-09-30).

  HOS appears to be undervalued relative to book value. Price/Book ratio at 0.93, much lower than the industry average of 3.42.

  Other Highlights: Over the last year, the company has proven itself to be more profitable than its industry competitors. Trailing twelve month (TTM) gross margin at 48.83%, higher than the industry average at 36.16%. TTM EBITD margin at 40.09% vs. industry average at 28.7%, while TTM operating margin came in at 26.19%, higher than the industry average at 18.61%. However, the company had a weaker than average pretax margin, reporting a ratio of 13.76%, lower than the industry average at 16.37%.