Top Financial Stocks To Invest In Right Now

Top Financial Stocks To Invest In Right Now: Retail Opportunity Investments Corp.(ROIC)

Retail Opportunity Investments Corp., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of necessity-based community and neighborhood shopping centers in the eastern and western regions of the United States. As of December 31, 2011, its portfolio consisted of 30 owned retail properties totaling approximately 3.2 million square feet of gross leasable area. The company has elected to be taxed as a REIT, for U.S. federal income tax purposes. The company is based in White Plains, New York.

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 take 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?

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-financial-stocks-to-invest-in-right-now-2.html