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RioTinto PLC, ADR (RIO) - Recent price $47.43. This is a high dividend (6.2%) mining company, a producer of aluminum, iron ore, diamonds, energy, and industrial minerals. Rio is undervalued on both a price to earnings and a price to free cash flow basis.
Schlumberger, Ltd. (SLB)- Recent price $62.29. Schlumberger offers a nice dividend (3.2%) to shareholders as they await a turnaround in the company's fortunes. SLB is a major oilfield services corporation, yet temporarily weakened the past few years by a slump in the price of oil and then a contention with Haliburton (HAL) over patent rights. In my view, once those headwinds are behind it, SLB should see good gains.
Square, Inc. (SQ) - Recent price $72.24. Square is part of an ongoing trend toward perhaps the eventual eradication of cash. SQ is a successful innovator in e-commerce, digital payments, and income collection via smart phones and other devices. For example, Square began helping small enterprises accept credit cards on their cell phones or iPads, went on to add a bunch of additional services, and even lends dollars to customers, given good understandings of their enterprises. SQ will likely be growing extra and very practical applications for businesses as the latter improve and expand and so need to rely more heavily on such services. Square's revenue improvement has been phenomenal.
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