Deep Value Stocks To Buy After Black Monday : PEO, CVX, XOM, SLB, VISI

Warren Buffett once famously said, “Be fearful when others are greedy and greedy when others are fearful.” It’s hard to argue that a 1,000-point selloff in the Dow Jones Industrial Average on Monday morning is an indication of anything other than fear in the market.
Twenty seven-year financial services veteran Tim Melvin couldn’t resist being a little bit greedy on Monday morning when the entire market seemed fearful. Melvin shared with Benzinga a couple of places that he believes the recent pullback has created value among his favorite stocks.

Adams Natural Resources Fund PEO 5.21%

One name that Melvin was buying on the dip was Adams Natural Resources, an investment fund that buys shares of big-name energy stocks such as Chevron Corp CVX 4.8%, ExxonMobil Corp XOM 4.73% and Schlumberger Ltd SLB 4.68%.
He sees value in all of these big energy names, which are already down significantly due to the weak oil price environment, and Adams currently trades at a 15 percent discount to net asset value (NAV).
“The fund has a distribution rate of over 9 percent at this price so you will enjoy solid cash flow while you wait for energy prices to recover,” Melvin adds.

Volt Information Sciences Inc VISI 3.22%

Another name that Melvin couldn’t resist buying was Volt Information Sciences. He sees huge upside to the stock once management completes its efforts to dispose of non-core assets and re-focus the business.
“I have a hard time coming up with a long term scenario that does not end up with this stock higher by two or three times the current quote over the next few years,” Melvin told Benzinga.

A Word Of Caution

Although he did buy a bit on the Monday morning dip, Melvin warned that investors might want to hold off on going all-in on stocks just yet.
“I didn’t do a lot of buying as we are still closer to all-time highs than 52 week lows so there are not a lot of bargains just yet,” he explained

InterXion Holding NV (NYSE: INXN)

InterXion Holding N.V. provides carrier and cloud neutral colocation data center services in Europe. The company enables its customers to connect to a range of telecommunications carriers, Internet service providers, and other customers. Its data centers act as content, cloud, and connectivity hubs that facilitate the processing, storage, sharing, and distribution of data, content, applications, and media between carriers and customers. The company offers its services to digital media and distribution, enterprises, financial services sectors, managed services providers, and network providers.
Take a look at the 1-year chart of InterXion (NYSE: INXN) with the added notations:

INXN got a nice pop back in February, but has since trended slowly lower. Eventually, the stock found support at $27.00 (green). INXN has hit that support level a couple of times so far this year, and now it looks like the stock will be testing that support once again. Traders could expect some sort of bounce, but if the $27.00 support were to break, lower prices should follow.

The Tale of the Tape: INXN has an important level of support at $27.00. A trader could enter a long position at $27.00 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Trade of the Day: Toll Brothers (TOL)

Add caption

Toll Brothers Inc (NYSE:TOL) — This builder of luxury homes, which operates in 20 states, is expected by Zacks to miss analysts’ estimates of 49 cents by 2% when Toll Brothers announces Q3 earnings prior to Tuesday’s open. However, a powerful record of growth, which is the result of excellent planning and long-term analysis of the housing market by management, might be a reason to believe that Zacks’ earnings estimates are too conservative.
Standard & Poor’s forecasts earnings of $2.30 in FY ’15, up from $1.84 last year. And Credit Suisse, noting that TOL exceeded Q2 forecasts (and that Wall Street underestimates Toll’s 2016 earnings potential), increased their FY15 estimate by 4 cents to $2.02 and FY16 estimates to $2.85, up from $2.78.
S&P also says that TOL’s geographic revenue mix and land holdings are more valuable than comparable builders, and that the company’s conservative business plan is to avoid speculative construction, unlike some of its peers. S&P’s 12-month target price of $41 is just 16.7 times forward EPS estimates, putting the price at a small, but warranted premium over its competition.
Technically, TOL stock is in a powerful uptrend that was confirmed on Aug. 12 with a breakout at about $39 following a consolidation that began in May. The break was probably the result of an upgrade by Benzinga’s analysts, who named TOL as one of their “top upgrades” with a revised 12-month price target of $48 from $35. But following the recent breakout, TOL fell several points on investors’ general market fears and pressures to raise cash.
Traders may continue to drive the stock to under its 50-day moving average at $38.55. Thus the “buy-under” price for TOL is $38 with a trading target of $45 by year’s end. If successful, our return would be over 18%.

Gold Price Forecast for the Final Bottom in Gold

As we wrote previously, in our daily gold trading newsletter, we usually focus on either short- or medium-term price swings, but in this essay we’ll do something quite different. We are going to analyze the gold market from the long-term perspective and we are going to focus on what’s important from the long-term point of view.

The most general and most important observation regarding gold’s performance in the last several years is that the yellow metal has been declining – it is not a one time even most gold investors had hoped it to be, but a new medium-term trend – and a quite powerful one. Major trends tend to end in a profound manner – during tops everyone wants to buy and when the bottom is formed everyone panics.

So far the rallies (even significant ones, when viewed from the short-term perspective) have just been corrective upswings that were followed by further disappointments. We haven’t seen a rally that would be strong enough to end the medium-term decline and we haven’t seen a bottom that would be accompanied by real panic among gold investors. (more)