Top 5 Low Price Companies To Own For 2014

The discount retailer is facing stiff competition from cheaper and cooler online players.

(Money Magazine) For years the Minneapolis-based discounter used a mix of low prices and playful style to make big-box bargain shopping cool. That allowed "Tarjay" to hold its own against the 800-pound gorilla, Wal-Mart.

Lately, though, the chain finds itself in a struggle. Target (TGT, Fortune 500) may have bitten off more than it can chew by following Wal-Mart (WMT, Fortune 500) into the slow-growing, low-margin grocery business. Meanwhile, competition from cheaper, cooler online players like Amazon.com (AMZN, Fortune 500) is heating up. Some investors, though, think the retailer's stock itself is now looking like a bargain.

Amazon's price war Forget Wal-Mart. Target faces stiff competition from Amazon.com. Amazon discount Competition 7.7% cheaper Target 6.3% cheaper chain-store average 2.7% cheaper Wal-Mart NOTE: Discount based on basket of goods before tax.
SOURCES: William Blair, company filings, Bloomberg

A tougher price war

Top 5 Low Price Companies To Own For 2014: Vision-Sciences Inc.(VSCI)

Vision-Sciences, Inc., together with its subsidiaries, designs, develops, manufactures, and markets products for endoscopy primarily in the United States and Europe. The company operates through two segments, Medical and Industrial. The Medical segment designs, manufactures, and sells endoscopy-based products, including flexible endoscopes, and sheath or EndoSheath disposable for ear, nose and throat (ENT), Urology, and pulmonology markets. This segment sells its endoscopy systems and related products to various end users consisting of ENT doctors, urologists, gastroenterologists, primary care physicians, bariatric surgeons, pulmonologists and other airway management doctors in hospitals, medical clinics, and physicians? private offices. The Industrial segment designs, manufactures, and markets flexible borescopes under the Machida brand to various users, primarily in the aircraft engine manufacturing and aircraft engine maintenance industries. This segment offers various products comprising modular, slim levers, knobs, battery operated portable flexible borescopes, industrial videoscopes, and portable video processors primarily for use in the inspection of aircraft engines, casting parts, and ground turbines. The company sells its products through direct sales representatives in the United States and independent distributors internationally. Vision-Sciences, Inc. was founded in 1987 and is headquartered in Orangeburg, New York.

Top 5 Low Price Companies To Own For 2014: Vitality Products Inc. (VPI.V)

Vitality Products Inc. engages in manufacturing, marketing, and distributing vitamins, minerals, nutritional supplements, personal care products, and organic food products in Canada and the United States. It offers approximately 70 products under the Vitality brand. The company distributes its products through traditional over-the-counter, mass merchandisers, health food stores, direct marketing, and multi-level Internet information and shopping cart marketing channels. Vitality Products Inc. was founded in 1946 and is headquartered in Vancouver, Canada.

Best Penny Companies To Buy Right Now: TECO Energy Inc.(TE)

TECO Energy, Inc., an electric and gas utility company, through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electric energy. It provides retail electric service to approximately 672,000 customers in West Central Florida with a net winter system generating capability of 4,684 megawatts. The company also engages in the purchase, distribution, and marketing of natural gas. It serves approximately 336,000 residential, commercial, industrial, and electric power generation customers in Florida. In addition, the company owns mineral rights, owns or operates surface and underground mines, and owns interests in coal processing and loading facilities. TECO Energy, Inc. was founded in 1899 and is headquartered in Tampa, Florida.

Advisors' Opinion:

• [By Justin Loiseau]

  As coal prices regain their competitive edge, investors should watch TECO Energy (NYSE: TE  ) , Great Plains Energy (NYSE: GXP  ) , and FirstEnergy (NYSE: FE  ) .

• [By Justin Loiseau]

  Raising rates
  Dominion (NYSE: D  ) requested a fuel rate increase for its Virginia operations, citing higher fuel costs and increased demand as primary reasons for its ask. Its first request in two years, a fuel rate increase is meant to cover costs, but not increase profits. The total ask reflects a 2.1% increase in the average customer's monthly bill, considerably less than TECO Energy's (NYSE: TE  ) 10% ask in April. According to Dominion and TECO, both their requests keep their customers' bills below national averages. If Virginia's regulatory body approves the request, Dominion's new rates will rise in July.

• [By Justin Loiseau]

  Get out of Guatemala
  TECO Energy (NYSE: TE  ) has washed its hands of two Guatemala power stations and handling and port facilities. The utility first announced its decision to exit this operation last October, and recorded a final $300,000 million benefit this quarter, closing the books on this international investment. With a $227.5 million sale price, TECO considered its farewell a fair exchange. "Over the life of the investments, our Guatemalan power stations have provided good returns and cash that we've used to help strengthen TECO Energy's balance sheet and invest in our U.S. utilities," wrote President and CEO John Ramil in TECO's 2012 annual report.

Top 5 Low Price Companies To Own For 2014: (SOTL.NS)

Savita Oil Technologies Limited manufactures and sells petroleum products in India and internationally. The company?s products include transformer oils, liquid paraffin and white oils, lubricating oils/greases, petroleum jellies, optic fiber cable filling compound, emulsifiable polyethylene wax, and waxes, as well as specialty wax emulsion for leather finishing, water based paints, and printing inks. It also generates and sells wind power. The company, formerly known as Savita Chemicals Limited, is based in Mumbai, India.

Top 5 Low Price Companies To Own For 2014: VeriSign Inc.(VRSN)

VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. The company provides domain name registry services and infrastructure assurance services. It offers registry services that operate the authoritative directory of various .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various .jobs and .edu domain names; and network intelligence and availability services that provide infrastructure assurance to organizations comprising Verisign iDefense security intelligence services, managed domain name system services, and distributed denial of service mitigation. VeriSign, Inc. was founded in 1995 and is headquartered in Reston, Virginia.

Advisors' Opinion:

• [By Monica Gerson]

  VeriSign (NASDAQ: VRSN) shares rose 0.50% to touch a new 52-week high of $50.69. VeriSign's PEG ratio is 1.60.

  Zix (NASDAQ: ZIXI) shares reached a new 52-week high of $4.82. ZixCorp's trailing-twelve-month profit margin is 18.08%.

• [By Holly LaFon]

  "Why are you still here?" we asked Verisign (VRSN)'s wealthy founder, an individual who had returned to lead his business after prior management "had mortgaged the golden egg to buy other businesses not as good as this Internet domain registry��nstead of investing in a fertility drug so the goose that laid the golden egg could produce more eggs!"

• [By Tabitha Jean Naylor]

  Warren Buffett has also been a very busy man as of late. One share of his company's stock sold for about $136,000 at the beginning of the year. It's now trading at about $173,000. Berkshire has diverse investments, owning stakes in companies from VeriSign (NASDAQ: VRSN), to DISH Network (NASDAQ: DISH), to its newest holding Exxon Mobil (NYSE: XOM).

• [By Monica Gerson]

  VeriSign (NASDAQ: VRSN) shares surged 0.41% to touch a new 52-week high of $51.51. VeriSign's PEG ratio is 1.65.

  Tuesday Morning (NASDAQ: TUES) shares gained 4.87% to create a new 52-week high of $14.63. Tuesday Morning shares have jumped 110.09% over the past 52 weeks, while the S&P 500 index has gained 18.17% in the same period.