Actions speak louder than words, as the old saying goes. So why does the media focus so much attention on what Wall Street says about companies, instead of what it does with them?
Luckily for Wall Street watchers, the Internet brings us MSN Money's list of which companies the institutions are buying. True, we should be as skeptical of Wall Street's actions as we are of its words. But when the 170,000-plus lay and professional investors on Motley Fool CAPS agree with Wall Street's opinions, it just might be time for some buying.
Here's the latest edition of Wall Street's Buy List, alongside our investors' opinions of the companies involved:
(out of 5)
China North East Petroleum
Companies are selected from the "Institutional Ownership Up Last Month" list published on MSN Money after close of trading on Friday. Recent price provided by Yahoo! Finance. CAPS ratings from Motley Fool CAPS.
Wall Street vs. Main Street
Up on Wall Street, the professionals think these are four of the greatest stocks to own. (For themselves, at least. There's no telling what they're telling you to do with 'em.) Meanwhile, down here on the corner of Wall & Main, investors are in a quandary.
The top-rated stock on today's list is a little provider of same-day delivery services in the United States and Canada, by the name of Dynamex. It's also my favorite of the bunch. Comparable to UPS
Unfortunately, I'm not the only investor that likes Dynamex -- last week, private equity shop Greenbriar announced it was buying the company at a bargain price. Shareholder-advocate lawyers are already jumping in and trying to derail the deal, but there's not guarantee it will be successful -- forcing us to seek our bargains elsewhere this week.
The best of the rest
elv1659 likes the "High profit margin-low P/E" at Newcastle -- but with $4.4 billion in debt, mightn't this stock be cheap for a reason? Little wonder the stock can't break the three-star CAPS barrier.
Likewise, China NEP. I explained back in May why that one might be a buy -- and might not. With a four-star rating of its own, it looks like Fools are generally bullish on the company's prospects. But investing in China always carries its risks.
Last stock standing
Which leaves us with the innocuously named TeleCommunication Systems. EPS100Momentum points out that the company just won an "amazing contract valued more than TSYS current market cap." ($269 million, to be precise, building a wireless comm system for the Marines.) The market cap's grown past that since the contract was announced, of course -- but at just 12 times earnings, and growth predicted to exceed 14% over the next five years, the stock looks cheap enough to deserve its four-star rating.
Factor in a price-to-free cash flow ratio of barely 3.3 -- even cheaper than the P/E -- and Fools, I think we just may have found ourselves a winner.
What do you think about TeleCommunications Systems? Is it as good as it seems? Tell us why -- on Motley Fool CAPS.
Fool contributor Rich Smith does not own shares of any company named above. You can find him on CAPS, publicly pontificating under the handle TMFDitty, where he's currently ranked No. 607 out of more than 170,000 members. The Fool has a disclosure policy.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.