Top 10 Supermarket Stocks To Watch Right Now

Top 10 Supermarket Stocks To Watch Right Now: Renaissance Oil Corp (ROE)

Renaissance Oil Corp, formerly San Antonio Ventures Inc., is developing a diversified shale and mature fields portfolio for development in Mexico and Spain. The Company is partnered with Grupo SAMCA, a diverse industrial with operations in energy, mining, industrial minerals, agriculture, environmental and various other business lines in Spain. Advisors' Opinion:

• [By Nelson Nguyen]

  Lessons Learned from "The Little Book that Builds Wealth" by Pat Dorsey

  Economic moats can protect companies from competition, helping them earn more money for a long time, and therefore making them more valuable to an investor. Return on capital (ROC) is the best way to judge a companys profitability. Mistaken Moats: 1) Great products (i.e. Krispy Kreme, Netscape), 2) strong market share (i.e. Chryslers minivan, IBMs PCs, General Motors), 3) great execution (i.e. Kodak), and 4) great management (i.e. JetBlue). They do not create long-term competitive advantages. They are nice to have, but theyre not enough. The four sources of structural competitive advantage are 1) intangible assets (brands, patents, licenses, etc.), 2) customer switching costs (products or services that are hard to give up, like banks), 3) network economics (i.e. credit cards, Microsoft Windows and Office), and 4) cost advantages (stems from process, location, scale or access to a unique asset). If you found a company with one of these characteristics with solid ROC, youve probably found a company with an economic moat. Its easier to create a competitive advantage in some industries than it is in others. See page 118 for Moats by Sector. Measuring Return on Capital: Return on Assets (ROA) measures how much income a company generates per dollar of assets. Return on Equity (ROE) measures the efficiency with which a company uses shareholders equity and is a great overall measure on returns on capital. (Note: A flaw in using ROE is a company can tak! e on a lot of debt and boost ROE without becoming more profitable.) Return on Invested Capital (ROIC) combines the best in both worlds by measuring the return on all capital invested in the firm (both debt and equity). Bet on the horse, not the jockey. Management matters, but far less than moats. The Moat Process on page 145:

  Has the firm historically generated solid ROC?

• [By Holly LaFon]

  During the year, we exited more holdings than we added, making the portfolio more concentrated. The exits were driven by the inability of newer positions to meet our milestones. The business environment in many parts of Asia has been difficult for the past few years, reflective of tougher lending conditions, and a moderation in growth. All this has translated into lower returns on equity (ROE) for many companies, and is one of the key reasons behind Asias underperformance relative to many other parts of the world. Some of the decline in ROE is likely structural, as may be the case for the industrial sector in China. However, we also believe that with stabilizing sales growth and lower inputs costs, there is a possibility that margins may stabilize and start to recover over the next few years.

• [By Fast Weekly]

  One of my favorite metrics is return on equity (ROE). I want to be sure that the companies I own generate a high rate of return on my equity ownership in the company. You can see the past 10 years of ROE for Unilever Plc.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-10-supermarket-stocks-to-watch-right-now-2.html