Turnkey investing is a very hot topic in real estate circles and seems to only be getting hotter. On a daily basis in the�BiggerPockets�Forums�there could be from half a dozen to two dozen conversations involving turnkey real estate. Those conversations may involve questions from new investors to advertisements of opportunities, but almost all of them get comments from investors who hate the concept. Some are uninformed opinions, and others are comments from experience, but all seem to point to two clear conclusions:
There is no definition of what turnkey real estate really means. The worst investment you can make is a cheap $40,000 turnkey property!Read this article carefully, and pay close attention to the end. If you are thinking about buying turnkey investments, there are many great opportunities all around the country, but there are probably more out there that are not. Investors are often their own worst impediment to making turnkey portfolios work, and I give a few ideas at the end regarding which investors this concept works for best!
Top 10 Biotech Companies To Invest In 2015: Communications Systems Inc.(JCS)
Communications Systems, Inc., together with its subsidiaries, manufactures and sells modular connecting and wiring devices, digital subscriber line filters, structured wiring systems, and media and rate conversion products primarily in North America, Europe, the Middle East, and Africa. The company?s Suttle segment manufactures and markets copper and fiber connectivity systems, enclosure systems, XDSL filters and splitters, and active technologies for voice, data, and video communications under the Suttle brand name; and residential structured wiring products under the SOHO Access brand name. This segment offers its products directly and through distributors to communication companies, smaller telephone companies, electrical/low voltage contractors, home builders, cable customers, and original equipment manufacturers. Its Transition Networks segment designs, assembles, and markets network interface devices, media converters, network interface cards, Ethernet switches, sma ll form factor pluggable modules, and other connectivity products under the Transition Networks and MILAN brand names. This segment sells its products through distributors, resellers, integrators, and original equipment manufacturers. The company?s JDL Technologies segment offers information technology (IT) solutions, including network design and integration IT service management, network security, desktop virtualization, and managed network operation center services. This segment serves educational clients, IT value added resellers, and managed service providers, as well as healthcare, enterprise, and government markets. Its Austin Taylor segment provides telephony and data networking products to telecommunications companies, distributors, and installers. This segment designs and manufactures external metal cabinets and internal metal boxes to industry standards and to customer specifications. The company was founded in 1969 and is headquartered in Minnetonka, Minnesota. Advisors' Opinion:
- [By Victor Selva]
On Dec.24, Mario Gabelli, the Chairman and Chief Executive Officer of GAMCO Investors, Inc. added Communications Systems Inc. (JCS) at an average price of $11.05 and currently holds 330,172 shares of the stock. It was the 5th time he added the stock during this year, which makes me feel that he is betting in favor of a positive future for the consumption of network capacity.
Recommendations of the Board
Communications Systems is engaged in the manufacture and sale of modular connecting and wiring devices for voice and data communications, digital subscriber line filters, and structured wiring systems, and through its Transition Networks business unit in the manufacture of media and rate conversion products for telecommunications networks.
Few months ago the firm announced�a series of actions to increase revenues and improve profitability. The first change was to operate as a holding company, monitoring and supporting all the business units: Suttle, Transition Networks (TN) unit and JDL Technologies. With this ��ew format�� each unit will operate with a high degree of autonomy. This will result in the reduction of labor costs, the emphasizing of accountability in the units as well as better recognition of performance. "While difficult decisions for the Board, we believe the changes we have taken to restructure our parent company as a holding company and to focus on individual business unit performance is in the best interest of our shareholders and will increase shareholder value" said Curtis A. Sampson, the Company's Board Chair and Interim CEO. Furthermore, strategic investments in the TN unit such as marketing, sales and product development will boost revenues in the future.
Severe Warning Signs
Not all are good news, we found three severe warning signs issued by GuruFocus: Piotroski F-Score of 2 is low, which usually implies poor business operation; revenue has been in decline over the past 3 years and operating margin has been in 5-year
5 Best Industrial Disributor Stocks To Own Right Now: InterContinental Hotels Group PLC (IHG)
InterContinental Hotels Group PLC (IHG), incorporated on May 21, 2004, is a global hotel company, operating seven brands internationally. IHG is the holding company. The principal activities of the Company are in hotels and resorts, with franchising, management, ownership and leasehold interests in over 4,400 establishments, with more than 658,000 guest rooms in over 100 countries and territories worldwide. IHG�� hotels brands include InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn and Holiday Inn Club Vacations, Holiday Inn Express, Staybridge Suites, Candlewood Suites and Priority Club Rewards. It has four geographical segments: Americas, Europe, Asia, Middle East and Africa (AMEA), and Greater China. As of December 31, 2011, the pipeline totalled 1,144 hotels (180,484 rooms). In March 2012, the Company announced the launch of HUALUXE Hotels and Resorts in China. During the year ended 31 December 2011, it sold four hotels, three in the Americas region and one in the AMEA region. IHG also manages the hotel loyalty program, Priority Club Rewards. As of December 31, 2011, the Company has 3,832 hotels operate under franchise agreements; managed 637 hotels worldwide and owned 11 hotels. During 2011, the Company opened 241hotels (44,265rooms) and removed 98 hotels (33,078 rooms). IHG is focused on the three segments that together generate over 90% of branded hotel revenues: midscale (broadly 3-star hotels), upscale (4-star), and luxury (5-star). InterContinental Hotels & Resorts InterContinental Hotels & Resorts is IHG�� 5-star brand located in cities and resort destinations across more than 60 countries worldwide. Hotels under InterContinental Hotels & Resorts brand are principally managed by the Company. As of December 31, 2011, there were 169 hotels and 57,598 rooms. As of December 31, 2011, it had 51 hotels in development pipeline. Crowne Plaza Hotels & Resorts Crowne Plaza Hotels & Resorts is the IHG�� upscale 4-star segment, specializes in offering modern business and meeting facilities with a service style to provide productive and energising experiences to guests. The majority of hotels under Crowne Plaza Hotels & Resorts brand are principally operated under franchise agreements in the United States and Europe, and are managed by the Company. As of December 31, 2011, there were 387 hotels and 105,104 rooms. As of December 31, 2011, it had 108 hotels in development pipeline. Hotel Indigo Hotel Indigo provides guests with the refreshing design and service experience with a boutique hotel. The Hotels Indigo brand is principally operated under franchise agreements. As of December 31, 2011, there were 39 hotels and 4,564 rooms. As of December 31, 2011, it had 59 hotels in development pipeline Holiday Inn and Holiday Inn Club Vacations The Holiday Inn brand family consists of Holiday Inn, Holiday Inn Express and Holiday Inn Club Vacations. Holiday Inn and Holiday Inn Club Vacations is the midscale hotel brand. Focused on creating an atmosphere where guests can relax, the brand is designed to support both business and leisure travellers. The brand family operates under franchise agreements. As of December 31, 2011, there were 1,240 hotels and 228,256 rooms. As of December 31, 2011, it had 267 hotels in development pipeline. Holiday Inn Express Holiday Inn Express offers convenience and comfort. As of December 31, 2011, there were 2,114 hotels and 196,666 rooms. As of December 31, 2011, it had 470 hotels in development pipeline. Staybridge Suites Staybridge Suites is the Company�� upscale extended stay brand for guests on longer trips, offering studios and suites complete with full kitchens and separate sleeping and work areas in a sociable, family-like atmosphere. Properties under Staybridge Suites brand are operated under a mixture of franchise and management agreements. As of December 31, 2011, there were 179 hotels and 19,567 rooms. As of December 31, 2011, it had 95 hotels in development pipeline. Candlewood Suites Candlewood Suites is the Company�� midscale extended stay brand that gives its guests all the essentials they need for a home-like stay. Properties under Candlewood Suites brand are principally operated under franchise agreements. As of December 31, 2011, there were 285 hotels and 27,500 rooms. As of December 31, 2011, it had 94 hotels in development pipeline. The Company competes with Accor, Choice Hotels International, Inc., Hilton Hotels Corporation, Hyatt, Marriott, Starwood Hotels & Resorts Worldwide, Inc. and Wyndham Worldwide Corporation. Advisors' Opinion:- [By Patricio Kehoe] �s largest hotel owner, franchiser and manager, with over 4,500 hotels in 100 countries. But let�� see what really makes this company a solid long-term investment.
A Majority Franchised System
This company is known for its famous midscale brands Holiday Inn and Holiday Inn Express, as well as the upscale hotels InterContinental and Crowne Plaza. The interesting factor, however, is the high rate of franchised and managed hotels among these brands, compared to industry rivals Hyatt Hotels Corporation (H) or Starwood Hotels & Resorts Worldwide Inc. (HOT). With more than 99% franchised or managed hotels in the InterContinental system, this company profits from excessive operating margins of 33.2% (the industry average is 8.70%) and minimal capital expenditures.
Additionally, the typical 10 to 30-year contracts for hotel franchises create high switching costs for property owners, while simultaneously generating high returns on invested capital. Since 2010, for example, InterContinental has averaged a 29% return on capital, and currently reports a 57.8% return, all due to the firm�� asset-light strategy of selling owned hotels and converting them to management or franchising contracts. The latest transaction of the InterContinental New York Barclay, for example, sold at $300 million, was a well strung deal for the company, which will maintain a 20% ownership in the property, as well as manage the hotel for the next 30 years. This transaction is bound to boost free cash flow, as well as revenue growth, which has been somewhat stagnant throughout fiscal 2013 (4.0%).
International Advantage
One of InterContinental�� key growth segments is its international business. Since 1984, this company has been taking advantage of the underpenetrated Chinese market, and today this hotel operator holds the best infrastructure to grow and expand its brand presence in the country. With an estimated 50,000 rooms in its new Chinese hotel
- [By WWW.DAILYFINANCE.COM]
Guests want this because it makes their lives simpler. The ability to go right to your room, gives them back time.
Hilton Worldwide (H) is the only other hotel chain to publicly acknowledge plans for mobile room keys -- which it plans to roll out at the end of 2015 at some U.S. properties. Hilton won't say how many hotels will be included, except that the service will be available at four of its brands, Hilton, Waldorf Astoria, Conrad and Canopy. "Guests want this because it makes their lives simpler," says Mark Vondrasek, who oversees the loyalty program and digital initiatives for Starwood. "The ability to go right to your room, gives them back time." Other hotel companies are finding other ways to streamline the arrival process. Marriott International (MAR) launched the ability to check in through its app at 330 North American hotels last year. By the end of this year, the program will be live at all 4,000 hotels worldwide. When a room becomes available, a message is sent to the guest's phone. Traditional room keys are pre-programmed and waiting at the front desk. A special express line allows guests to bypass crowds, flash their IDs and get keys. At Hilton, all 4,000 properties worldwide will have a similar check-in by the end of the year. The one added feature: Guests can use maps on the app to select a specific room. InterContinental Hotels Group (IHG) is testing express check-in at 60 hotels. Not About Cutting Jobs The services are geared toward road warriors who don't want to slow down, even for a second. Guests who like personal interaction can still opt for a more leisurely check-in, and hotel companies say the move isn't about cutting jobs. "If you're at the end of a long day, you might want a little less of a chatty experience. But if you're showing up at a new resort, you may want to know what the pool hours are," says Brett Cowell, vice president of information technology for Hyatt, which is testing permanent keys for frequent guests
5 Best Industrial Disributor Stocks To Own Right Now: MSC Industrial Direct Co Inc (MSM)
MSC Industrial Direct Co., Inc. (MSC), incorporated on October 25, 1995, is direct marketers and distributors of a range of metalworking and maintenance, repair and operations (MRO) products to customers throughout the United States. The Company operates primarily in the United States, with customers in all 50 states, through a network of five customer fulfillment centers (four customer fulfillment centers are located within the United States and one is located in the United Kingdom and 106 branch offices (104 branches are located within the United States, one is located in the United Kingdom and the other is located in Mexico). The Company offers approximately 600,000 stock-keeping units (SKUs) through its master catalogs, weekly, monthly and quarterly specialty and promotional catalogs, brochures and the Internet, including its Websites, mscdirect.com, mscmetalworking.com and use-enco.com (MSC Websites). In April 2013, the Company announced that it has completed the acquisition of the North American distribution business (BDNA or the Business) of Barnes Group Inc.
The Company's customers include a range of purchasers of industrial supply products, from individual machine shops to Fortune 1000 companies, to government agencies, such as the General Services Administration (GSA) and the Department of Defense. The Company uses its database of companies and contacts, and the Company also purchases information on prospective customers in the form of databases, mailing lists, and email lists to target the distribution of these various publications and other marketing vehicles to specific individuals within an organization whose purchasing history or other criteria suggest receptiveness to specific publication titles and promotions. The Company also provides electronic ordering capabilities (EDI and XML) to support its customers' purchase order processing.
The Company's products represent a range of MRO products that include cutting tools; measuring instruments; tooling component! s; metalworking products; fasteners; flat stock; raw materials; abrasives; machinery hand and power tools; safety and janitorial supplies; plumbing supplies; materials handling products; power transmission components; and electrical supplies. The Company provides product information and ordering capabilities on the Internet. The Company also maintains a hardware and software platform in support of its VMI program, which allows customers to integrate scanner-accumulated orders directly into its Sales Order Entry system.
Advisors' Opinion:- [By Rich Duprey]
Citing the benefits of providing high-margin, low-cost consumables with a broad distribution footprint throughout the U.S. and Canada, industrial supplier MSC Industrial Direct (NYSE: MSM ) announced today that it has completed the�acquisition of Barnes Group's (NYSE: B ) �North American distribution business�for $550 million.
- [By Laura Brodbeck]
Wednesday
Earnings Expected: WD-40 Company (NASDAQ: WDFC), MSC Industrial Direct Company (NYSE: MSM), CHC Group (NYSE: HELI) Economic Releases Expected: Chinese trade balance, Australian unemployment rateThursday
5 Best Industrial Disributor Stocks To Own Right Now: Konared Corp (KRED)
KonaRed Corporation., formerly TeamUpSport Inc., incorporated on October 4, 2010, is a development-stage company. The Company is focused to develop and commercialize on its Website www.teamupsport.com. As of May 31, 2011, the Company had not generated revenue. On October 4, 2013, the Company acquired Sandwich Isles Trading Co. Inc. dba KonaRed.
The Company's Website will be designed to integrate into a single online offering people�� interest in sports with the capabilities of online social networking. The Website will become a sports focused social networking Website.
Advisors' Opinion:- [By Tabitha Jean Naylor]
Konared (OTCQB: KRED)
Konared’s mission is to reintroduce the world to coffee. Unlike many other start-ups that focus on providing yet another way to enjoy traditional coffee, which is made from toasted and pulverized coffee beans, Konared actually makes use of the coffee berry in order to produce its beverage.
- [By James E. Brumley]
If you're only a headline skimmer, it's a detail that would have been easy to overlook. For those who don't miss anything, however, they'll already know that beverage company Konared Corp. (OTCBB:KRED) is about to unveil a product that will put it toe-to-toe with the likes of The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP). And, if history is any indication, while PepsiCo and Coca-Cola are apt to maintain their wider distribution, KonaRed is apt to beat them in enough places to carve out a nice piece of the market, and reward KRED shareholders in the process. Meanwhile, there's a good chance that most PEP and KO shareholders know - or even care - that the company they own a stake in is even competing in this arena. That arena? Coconut water.
- [By James E. Brumley]
Consider this an official warning for PepsiCo, Inc. (NYSE:PEP). And, The Coca-Cola Company (NYSE:KO) is being put on notice too. There's a newcomer in the world of functional beverages, and it's poised to be a disruptor for some of the beverage industry's presumably-prolific brands. This newcomer? KonaRed Corp. (OTCBB:KRED). It's not just a new name either. It's bringing a whole new flavor to the healthy drinks market that's not only creative, but delicious.
- [By Bryan Murphy]
There's nothing more vital to a up-and-coming small cap stocks than liquidity, which ironically, is often the most difficult thing for them to muster. The best of the best of the small cap ilk, however, tend to find cash when they need it, because money always finds an opportunity to multiply itself. Enter Konared Corp. (OTCBB:KRED). Not that the company was cash-strapped to begin with, but it won't have to worry about cash for a long, long time. KRED inked a deal with an institutional investment fund that will guarantee the company can sell up to $12 million worth of shares to this fund over the course of the next two and a half years.
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