Spencer Platt/Getty Images It seems as if tech darlings don't want to scare off potential investors with sticker shock. Last Wednesday Apple (AAPL) became the latest company with a hefty share price to declare a stock split, agreeing to exchange every single share for seven shares trading at a much lower price. Stock splits are zero sum games. If an investor has 100 shares of Apple with the stock at $560 at the time of the 7-for-1 split, that investor would own 700 shares with a stock price of $80. But no matter how you slice it, the math still results in a $56,000 stake in the consumer tech giant. However, many think that there's a psychological benefit to having a stock appear to have a lower price. Apple isn't alone. Google (GOOG) also recently completed what was in effect a 2-for-1 stock split by giving investors a new share of non-voting stock for every share that they owned at the time. With Apple and Google validating the practice, don't be surprised if more stocks with large share prices go this route. A Split by Any Other Name Apple executed 2-for-1 stock splits in 1987, 2000 and 2005. It was quick on the trigger whenever its stock approached high double digits or poked its head into triple digits. However, the stock splits went away after that. Apple's stock continue to shoot higher as the iPod grew in popularity, followed by the introduction of the iPhone in 2007 and the iPad a few years later. Why did the company alter its behavior? The best bet is that Google changed the game when it went public around the time of Apple's final stock split. Google wanted to go public at a price that was as high as $135 during the summer of 2004. It had to settle for $85, but the message was clear: Google wasn't going to try to cater to conventional whims where companies would perform pre-IPO splits in order to hit the market at more accessible prices between $10 and 30. Google's reluctance to declare stock splits through nearly 10 years of trading let everyone know that it was in a race to hit the highest share price possible. It finally gave up the game a few weeks ago when it broke through the $1,000 ceiling, announcing a spinoff that was essentially a 2-for-1 stock split. Google's move now leaves just four stocks trading for more than $1,000 a share. The Rise and Fall and Rise of Stock Splits Stock splits were fashionable in the late 20th century. Retail investors were buying stocks in round lots of 100 shares at a time, and a company didn't want to limit its appeal. Individual investors who had just $20,000 to invest in a new stock would gravitate to 100 shares of a stock at $20 than to buy 20 shares of a stock at $100. Even today, some investors argue that a stock price can be too high. Market cap is the product of a stock's price and the number of shares outstanding. The stock price on its own is immaterial. A stock can be expensive if it's overvalued relative to its fundamentals, but there's really no such thing as a share price that is too high on its own. It's true that the greatest investor of our time is not a fan of stock splits. Warren Buffett has refused to declare a stock split on Berkshire Hathaway (BRK-A), though he reluctantly went on to offer a new class of shares (BRK-B) at a lower price several years ago. However, with the exception of a handful of successful companies, most companies don't like to see their prices get too high.
Tuesday, April 29, 2014
Apple and Google Show That Stock Splits Are Cool Again
Best Supermarket Companies To Invest In 2015
Small cap Natural Grocers by Vitamin Cottage (NYSE: NGVC) and mid cap Sprouts Farmers Market Inc (NASDAQ: SFM) are taking aim at natural and organic foods supermarket giant Whole Foods Market (NASDAQ: WFM), but do either of these stocks have what it takes to take on the the king of organic retailing? Whole Foods Market was founded in Austin way back in 1978 by a�twenty-five year old college dropout and a twenty-one year old�at a time when there were only a handful of natural or organic�supermarkets in the country. Today, Whole Foods Market�has 364 stores in the United States, Canada and the United Kingdom���which are sometimes referred to as ��hole Wallet��r ��hole Paycheck��given how much it costs to shop there.
However, Whole Foods Market is not the only natural or organic focused supermarket chain hoping to take your ��hole wallet��or ��hole paycheck:��/p>
Best Supermarket Companies To Invest In 2015: Freescale Semiconductor Inc (FSL)
Freescale Semiconductor, Ltd. provides embedded processing solutions for automotive, networking, industrial, and consumer markets worldwide. The company�s embedded processor products comprise microcontrollers, such as ultra low power, low end 8-bit, and 32-bit products with on-board flash memory, which provide the digital logic or intelligence for electronic applications; single-and multi-core microprocessors; and applications processors with embedded memory, and special purpose hardware and software for multimedia applications. It also offers wireless connectivity products for low power wireless communications functionality; communications processors that perform tasks related to control and management of digital data, and network interfaces; and radio frequency (RF) devices, which consist of power transistors, amplifiers, receivers, and tuners for amplifying RF signals. In addition, the company provides analog, mixed-signal, and power management integrated circuits (ICs ) that include switches, power management devices, battery and motor control devices, CAN/LIN network transceivers, and signal conditioners that perform audio processing, backlight management/control, power management, and charging functions; sensors comprising pressure, inertial, magnetic, and proximity sensors, which act as an interface between an embedded system and external environment; and cellular products consisting of baseband processors, power management ICs, and RF subsystems. It sells its products to original equipment manufacturers, distributors, original design manufacturers, and contract manufacturers through its direct sales force and distributors. The company was formerly known as Freescale Semiconductor Holdings I, Ltd. and changed its name to Freescale Semiconductor, Ltd. in April 2012. The company was incorporated in 2006 and is headquartered in Austin, Texas. Freescale Semiconductor, Ltd. is a subsidiary of Freescale Holdings L.P.
Advisors' Opinion:- [By Lee Jackson]
Freescale Semiconductor Ltd. (NYSE: FSL) also has a less than 10% exposure in sales to Cisco. With a large percentage of sales, totaling close to 30% to the growing automotive sector, Freescale may be able to dodge lower orders for its digital networking chips. The consensus price target for the stock is $19.
- [By Dan Caplinger]
The real key for TI will be whether its analog chips can gain greater application. General Electric's Industrial Internet project continues to move forward, and connecting networks of machines in order to improve communication and gather data should require plenty of sensor-chips of the type in which TI specializes. Moreover, Cisco Systems and its Internet of Things initiative also have promise both for TI and for Freescale Semiconductor (NYSE: FSL ) , which came out with a new microcontroller chip earlier this year that could potentially work together with TI-made Wi-Fi transmitted chips to facilitate communication. Freescale is tiny compared to TI, but a partnership there could help both companies make more from the opportunity than they could separately.
- [By Alex Planes]
The Internet of Things is about to get a little smaller. Make that a lot smaller -- so small you could put it on a pill and become a thing on the Internet yourself. Freescale Semiconductor (NYSE: FSL ) unveiled a new ARM Holdings (NASDAQ: ARMH ) -based microcontroller chip last month, dubbed the Kinetis KL02, that has everything necessary on board to produce, track, record, and analyze the essential information that device creators might need in a package smaller than your pinky toenail. That's it over to the left -- all 1.9 millimeters by 2 millimeters of it.
- [By Jake L'Ecuyer]
Shares of Freescale Semiconductor (NYSE: FSL) were also up, gaining 15.56 percent to $17.67 after the company beat street estimates on its fourth quarter report.
Best Supermarket Companies To Invest In 2015: Peregrine Pharmaceuticals Inc.(PPHM)
Peregrine Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, engages in the research and development of monoclonal antibodies for the treatment of cancer and viral infections. Its products under development include bavituximab, a phosphatidylserine-targeting antibody, which is in Phase II trials for the treatment of front-line and second-line non-small cell lung cancer (NSCLC), and pancreatic cancer; and Cotara, a DNA/histone-targeting antibody that is in Phase II trial for the treatment of recurrent glioblastoma multiforme. The company is also developing bavituximab in combination with ribavirin, which is in Phase II clinical trial for the treatment of patients with genotype-1 hepatitis C virus infection. In addition, it has investigator-sponsored trial programs that evaluate bavituximab for the treatment of patients with liver cancer, second-line castration resistant prostate cancer, HER-2 negative metastatic breast cancer, and locally advanced or metasta tic NSCLC. Further, the company, through its wholly-owned subsidiary, Avid Bioservices, Inc., provides integrated current Good Manufacturing Practices (cGMP) commercial and clinical manufacturing services in the United States, including contract manufacturing of antibodies, recombinant proteins, and enzymes; cell culture development; process development; and testing of biologics for biopharmaceutical and biotechnology companies under cGMP. It has licensing agreements with the University of Texas Southwestern Medical Center; Merck KGaA; SuperGen, Inc.; and Affitech A/S. Peregrine Pharmaceuticals, Inc. intends to sell its products in the United States and internationally in collaboration with marketing partners or through a direct sales force. The company was founded in 1981 and is based in Tustin, California.
Advisors' Opinion:- [By Sean Williams]
What: Shares of Peregrine Pharmaceuticals (NASDAQ: PPHM ) , a biopharmaceutical company developing monoclonal antibodies to treat cancer, jumped as much as 19% after the company reported final data on its mid-stage second-line non-small cell lung cancer drug, Bavituximab, at the annual American Society of Clinical Oncology meeting.
- [By Sean Williams]
Also gaining double digits on the week was the highly embattled Peregrine Pharmaceuticals (NASDAQ: PPHM ) which rallied after the FDA approved its late-stage trial design for its second-line non-small-cell lung cancer immunotherapy, Bavituximab. While trial design approvals are rarely big news, it is in this case because mid-stage results for Bavituximab have been all over the place. At first Bavituximab demonstrated a better than doubling in progression-free survival followed weeks later by management's insistence that investors were not to trust the data. A few months later, following a review, we were told to trust the data again. This filing helps relieve some of the confusion surrounding Peregrine's mid-stage results, and hopefully its phase 3 study will be black-and-white obvious as to whether Bavituximab provides a statistically significant benefit.
Best European Companies To Own For 2015: Ritchie Bros. Auctioneers Incorporated(RBA)
Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada.
Advisors' Opinion:- [By Canadian Value]
Australians will remember 2013 in part for the fall of some of our national corporate icons. The Ford Falcon and Holden Commodore are unlikely to be produced domestically going forward, and Qantas has unsuccessfully sought subsidies from the Federal government. Due to elevated cost structures and a high exchange rate, Australia Inc. is increasingly unable to compete in a fiercely competitive global market.High on the Reserve Bank of Australia�� (RBA) Christmas wish-list this year will be a lower exchange rate and a business community more willing to loosen its purse strings in 2014. Unfortunately, the first wish will likely need to be granted before the second can be realized. We expect the RBA will need to keep policy accommodative over the cyclical horizon and 2014 will be a critical transition year for the Australian economy.Over the year through September 2013, real growth in business investment outside the mining sector slowed to almost zero (0.5% to be precise, as shown in Figure 1). Why has Australia Inc. invested so little into its businesses this year? As RBA Deputy Governor Philip Lowe commented in a speech in late October, the lack of business investment in recent years is actually a global phenomenon across the developed world.�Although hard to quantify, this ��nvestment drought,��as Lowe described it, has likely been influenced by a lingering risk aversion after the financial crisis as well as the political uncertainty that has been common in many developed countries over the past few years. But in Australia another variable has also been restraining non-mining capital expenditure, and that is the elevated exchange rate.As Figure 1 shows, changes in the real trade-weighted exchange rate have historically led changes in non-mining business investment. As the real exchange rate appreciates, domestic products and services become less competitive relative to foreign goods and services, both at home and abroad. And of course, the reverse is true w
- [By Chris Hill]
Caterpillar's (NYSE: CAT ) �first-quarter profit�fell 45% and the company lowered guidance. But its CEO said that his confidence is at a two-year high and sales in China rose. Should investors buy the stock? In this installment, our analysts discuss Caterpillar's future and explain why Ritchie Bros. Auctioneers (NYSE: RBA ) could be a hidden winner.
Best Supermarket Companies To Invest In 2015: Acadia Healthcare Company Inc (ACHC)
Acadia Healthcare Company, Inc., incorporated on October 24, 2005, is a provider of inpatient behavioral healthcare services in the United States. The Company's principal business is to develop and operate inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral health services in the United States. In January 2014, the Company announced that it has completed the acquisition of inpatient psychiatric facilities in Seattle, Washington, and Riverside, California.
In December 2011, the Company closed three outpatient facilities and a 24-bed substance abuse facility acquired from PHC on November 1, 2011. The Company's facilities and services consists of acute inpatient psychiatric facilities; residential treatment centers, group homes, therapeutic group homes and foster care; substance abuse centers; outpatient community-based services, and other behavioral services, including specialized educational services and call centers.
Acute Inpatient Psychiatric Facilities
The Company�� acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. The acute setting provides 24-hour observation, daily intervention and monitoring by psychiatrists. The Company's facilities, which offer acute care services provide evaluation and crisis stabilization of patients with severe psychiatric diagnoses through a medical delivery that incorporates structured and intensive medical and behavioral therapies with 24-hour monitoring by a psychiatrist, psychiatric trained nurses, therapists and other direct care staff. As of December 31, 2011, the Company operated 10 facilities that provided acute care services in addition to other services.
Residential Treatment Centers/Group Homes
The Company�� residential treatment centers treat patients with behavioral disorders in a non-hospit! al setting. The facilities balance therapy activities with social, academic and other activities. The Company provides residential treatment care through a medical model residential treatment facility, which offers intensive, medically-driven interventions and individualized treatment regimens designed to deal with moderate to high level patient acuity. Treatment is provided by an interdisciplinary team coordinating psychopharmacological, individual, group and family therapy, along with specialized accredited educational programs in both secure and unlocked environments. As of December 31, 2011, the Company operated 14 facilities that provided residential treatment care, in addition to other services.
The Company's group home programs provide family-style living for youths in a single house or apartment within residential communities where supervision and support are provided by 24-hour staff. The Company also operates therapeutic group homes that provide treatment services for seriously, emotionally disturbed adolescents. The Company also manages therapeutic foster care programs, which are considered the least restrictive form of therapeutic placement for children and adolescents with emotional disorders. As of December 31, 2011, the Company operated three facilities that provided group home and therapeutic group home services.
Outpatient Community-Based Services
The Company's community-based services are provided for two age groups: children and adolescents (seven to 18 years of age) and young children (three months to six years of age). Community-based programs are designed to provide therapeutic treatment to children and adolescents who have a clinically-defined emotional, psychiatric or chemical dependency disorder while enabling the youth to remain at home and within their community. Community-based programs developed for these age groups provide an array of therapeutic services to children. As of December 31, 2011, the Company operated eight facilities that! provided! community-based services.
Substance Abuse Centers
The Company�� Substance abuse centers (or SACs) provide a continuum of care for adults with addictive disorders and co-occurring mental disorders. The Company's detox, inpatient, partial hospitalization and outpatient treatment programs give patients access to the least restrictive level of care. As of December 31, 2011, the Company operated two SACs.
Specialized Education Services and Other Behavioral Services
The Company's education programs provide an educational experience to children and adolescents having special education needs. In some states, the Company provides educational services on an extended school year basis. The Company also has charter schools that utilize teaching methods that address therapeutic needs particular to learning and behavioral deficits of the students. The Company's education services also include vocational education and training that may allow those residents to become employable in entry level positions in the communities in, which they reside. GED preparation courses are also offered for students who require assistance in developing test-taking skills and who would benefit from tutoring services. As of December 31, 2011, the Company operated 11 facilities that provided educational services.
The Company also offers a variety of other behavioral health services for specialized populations who need specific treatment methods. Programs include at risk infant and children clinics, sexually maladaptive behavior (SMB) programs, programs for adolescent females, programs for the mentally retarded and developmentally disabled youth and programs for severe and persistently mentally ill youths.
Call Center Operations
The Company provides management , administrative and help lines services. The Company provides these servicesthrough contracts with railroads and a call center contract with Wayne County, Michigan.
The Company ! competes ! with UHS, Aurora Behavioral Health Care (Aurora) and Ascend Health Corporation (Ascend).
Advisors' Opinion:- [By Tom Lydon]
Top holdings based on the index include Acadia Healthcare Companies (ACHC), Amsurg Corporation (AMSG), Brookdale Senior Living (BKD), Clarcor (CLC) and Community Health Systems (CYH).
- [By Roberto Pedone]
Acadia Healthcare (ACHC) develops and operates a network of behavioral health facilities, providing premier psychiatric and chemical dependency services to its patients. This stock closed up 6.5% at $36.87 in Wednesday's trading session.
Wednesday's Volume: 792,000
Three-Month Average Volume: 360,986
Volume % Change: 124%From a technical perspective, ACHC soared higher here right above its 50-day moving average at $34.12 with strong upside volume. This move pushed shares of ACHC into breakout territory, since the stock took out its former 52-week high at $36. Shares of ACHC have been uptrending strong over the last six months, with shares soaring higher from its low of $24.93 to its intraday high of $37. During that move, shares of ACHC have been making mostly higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in ACHC as long as it's trending above its 50-day at $34.12 and then once it sustains a move or close above Wednesday's high of $37 with volume that's near or above 360,986 shares. If we get that move soon, then ACHC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.
Best Supermarket Companies To Invest In 2015: Atech Holdings Ltd (ATH)
ATech Holdings Limited is an Australia-based company. As of June 30, 2010, the Company was engaged in the investment of its cash reserves. The Company�� controlled entities include SEAA (151 Sturt St, South Melbourne) Pty Limited and SEAA (Boronia) Pty Limited. Advisors' Opinion:- [By Eric Lam]
Athabasca Oil Corp. (ATH), which is seeking a joint-venture partner for its Duvernay holdings, jumped 9.3 percent to C$7.97, the most in seven weeks.
Best Supermarket Companies To Invest In 2015: Bona Film Group Limited(BONA)
Bona Film Group Limited distributes films in the People?s Republic of China. It distributes films to movie theaters, as well as to non-theatrical distribution channels, including DVD and Blu-ray and other home video products; Internet and digital distribution; in-flight entertainment; and cable, satellite, and broadcast televisions. The company also invests in the production of Chinese and Hong Kong films in order to obtain the distribution rights for movie theaters and non-theatrical channels. In addition, Bona Film Group operates six movie theaters in five cities of the People?s Republic of China; operates a talent agency business that represents artists; and involves in film advertising and television production businesses. The company was founded in 2003 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Bryan Murphy]
With just a quick glance at the chart, Bona Film Group Ltd (NASDAQ:BONA) doesn't look like anything other than an erratic mess. When you take a step back and take a look at the longer-term chart of BONA, however, you can see the last several weeks have ushered in a major bullish change of direction for the stock... meaning now's a great time to start wading into a position.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Bona Film Group (Nasdaq: BONA ) , whose recent revenue and earnings are plotted below.
Best Supermarket Companies To Invest In 2015: SilverCrest Mines Inc (SVLC)
SilverCrest Mines Inc. (SilverCrest), incorporated on May 22, 1973, is engaged in the acquisition, exploration and development of mineral properties in Mexico and Central America. The Company�� principal focus is the development and operation of the Santa Elena Project, which property consists of seven mineral concessions totaling 2,726.54 hectares, portions of which include the producing Santa Elena gold and silver mine located northeast of Hermosillo, Sonora State, Mexico. It operates in three segments: the mine operations at Santa Elena, Mexico; mine exploration and evaluation projects at La Joya and Cruz de Mayo, Mexico, and Corporate. The Company is also focused on exploring and developing its La Joya Property located in Durango, Mexico, which contains a discovered polymetallic deposit. The Company�� other mineral properties include the Cruz de Mayo Project (Mexico), the La Joya Property (Mexico), the Silver Angel Project (Mexico) and the El Zapote Project (El Salvador).
The La Joya Property consists of 14 mineral concessions with a total area of approximately 8,379.6 hectares. Its Cruz de Mayo Project consists of two mineral concessions comprising a total of 452 hectares. The Company holds a 100% interest in the Cruz de Mayo 2 concession (which encompasses 434 hectares). The Silver Angel Project consists of two mineral concessions encompassing a total of 3,251 hectares located in the northern Sierra Madre Range in Sonora, Mexico. The Company holds a 100% interest in these concessions, which were acquired by concession applications.
The El Zapote Project consists of two mineral concessions (the El Caliche and San Juan Exploration Concessions) located in the Department of Santa Ana in northern El Salvador, Central America. The Company holds a 100% interest in the El Zapote Project. During the year ended December 31, 2011, an initial drill program of 25 holes totaling approximately 2,900 meters was completed on the Santa Elena Norte target, located approximately 1 kilo! meters north of the Santa Elena Mine.
Advisors' Opinion:- [By Hebba Investments]
Even with rising Q2 costs, GG still has lower true all-in costs than many of its larger competitors' Q1FY13 costs. Compared to Q1FY13 numbers of competitors such as Yamana Gold (AUY) (costs just over $1300), Kinross Gold (KGC) (costs above $1350), Silvercrest Mines (SVLC) (costs below $1100), Newmont Gold (NEM) (costs around $1300) Agnico-Eagle (AEM) (costs around $1400) and Barrick Gold (ABX) (costs around $1200).
Best Supermarket Companies To Invest In 2015: Watsco Inc.(WSO)
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment in the United States. It distributes residential central air conditioners; gas, electric, and oil furnaces; commercial air conditioning and heating equipment and systems; and other specialized equipments. The company also distributes various parts, including replacement compressors, evaporator coils, motors, and other component parts; and supplies comprising thermostats, insulation material, refrigerants, ductwork, grills, registers, sheet metal, tools, copper tubing, concrete pads, tape, adhesives, and other ancillary supplies. It serves approximately 50,000 contractors and dealers that service the replacement and new construction markets. The company also exports its products to Latin America and the Caribbean. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.
Advisors' Opinion:- [By Marc Bastow]
HVAC parts and components distributor Watsco (WSO) announced a 60% dividend increase to 40 cents per share, payable Oct. 31 to shareholders of record as of Oct. 10.
WSO Dividend Yield: 1.7% - [By Michael Flannelly]
Watsco Inc (WSO), a distributor of air conditioning, heating, and refrigeration equipment, announced early on Wednesday that it is raising its quarterly dividend payout by 60%.
The company will now pay a quarterly dividend of 40 cents per share, up from the previous payout of 25 cents per share. This dividend will be paid on October 31 to shareholders of record on October 15, with an ex-dividend date of October 10.
Albert H. Nahmad, Watsco’s Chairman & Chief Executive Officer stated, “Our philosophy of sharing cash flow through dividends continues. As we have stated many times in the past, our goal over the long-term is to pay increasing dividends while maintaining a conservative balance sheet with capacity to make investments in our business and build our network. We will consider future increases in light of such investment opportunities, cash flow, general economic conditions and our overall financial condition.��/p>
Watsco shares were inactive during pre-market trading on Wednesday. The stock is up 25.49% year-to-date.
Best Supermarket Companies To Invest In 2015: El Paso Pipeline Partners LP (EPB)
El Paso Pipeline Partners, L.P. engages in the ownership and operation of natural gas transportation pipelines and storage assets in the United States. The company holds a 100% interest in Wyoming Interstate Company, Ltd. (WIC), an interstate pipeline transportation company located in Wyoming, Utah, and Colorado. It operates approximately 800-mile WIC interstate natural gas pipeline system with a design capacity of approximately 3.5 billion cubic feet per day. The company also owns a 58% general partner interest in Colorado Interstate Gas Company, which operates an interstate natural gas pipeline system with approximately 4,300 miles of pipeline with a design capacity of approximately 4.6 billion cubic feet per day; and associated storage facilities with 37 billion cubic feet of underground working natural gas storage capacity. In addition, it owns a 60% general partner interest in Southern Natural Gas Company that operates an interstate natural gas pipeline system with ap proximately 7,600 miles of pipeline with a design capacity of approximately 3.7 billion cubic feet per day; and associated storage facilities with a total of approximately 60 billion cubic feet of underground working natural gas storage capacity. Further, the company owns interests in Elba Express Company, L.L.C., which operates an approximately 200-mile pipeline with a design capacity of 945 million cubic feet per day; and Southern LNG Company, L.L.C. that owns a liquefied natural gas receiving terminal with a storage capacity of 11.5 equivalent billion cubic feet. It serves natural gas distribution and industrial companies, electric generation companies, natural gas producers, other natural gas pipeline companies, and natural gas marketing and trading companies. El Paso Pipeline GP Company, L.L.C. serves as the general partner of the company. The company was founded in 2007 and is based in Houston, Texas. El Paso Pipeline Partners, L.P. is a subsidiary of El Paso Pipeline LP Holdings, L.L.C.
Advisors' Opinion:- [By David Dittman]
Question: El Paso Pipeline Partners LP (NYSE: EPB): Buy, hold or sell?
Answer: I have El Paso Pipeline Partners rated a buy under 38. Management reaffirmed its $2.60 annualized distribution target, which implies no growth compared to 2013. But it will be maintained, and 2015 will be a better year.
- [By Aaron Levitt]
Pipelines and midstream energy firms are supposed to be boring investments. And historically, energy logistics giant Kinder Morgan (KMI) has fit into that camp. That is, until analysts at Hedgeye Risk Management began to question the company�� — and its subsidiaries Kinder Morgan Energy Partners’ (KMP) and El Paso Pipeline Partners’ (EPB) — cash flows, CAPEX spending and incentive distribution rights (IDRs).
Monday, April 28, 2014
Have Investors All Gone Completely Mad?: StockTwits
NEW YORK (TheStreet) -- A wild ride in stocks today saw more brutally painful losses for the names hit hardest recently -- yet also powerful bounces far off the day's lows.
A quick perusal of sentiment scores for some popular names leads one to ask: who's right?
Many stocks have witnessed ugly declines in recent weeks, yet bullish sentiment remains stubbornly elevated. Something's got to give. Are the remaining bulls about to capitulate and send these stocks even lower? Or have the weak hands already puked, leaving these stocks in the stewardship of the smartest and strongest (read: non-leveraged, better capitalized) remaining players?
Let's discuss some stocks in need of more definitive signals: Facebook (FB) is 22% off highs set in early March. The stock broke to its lowest levels since the peak this morning. Yet sentiment scores in at 82% bullish, in fact higher than two weeks ago! 
Twitter (TWTR) is 45% off highs set in December, and also touched new "bear market" lows this morning. Yet bulls have actually been increasing their level of bullishness in recent weeks -- weighing in today at 73%! 
Sentiment has been eroding slightly in FireEye (FEYE). Yet that sentiment is far less harsh than the gut-wrenching way in which its share price has plummeted -- down 60% since its highs less than eight weeks ago!
Granted, Plug Power (PLUG) had an astonishingly fast run-up in price from December through early March. But today, investors are smarting from a 60% pullback since those early March prices. Yet, bullish sentiment clocks in at 75%!
Much has been written about John Q. Public and his general apathy towards the stock market since the 2008 to 2009 financial wipeout. This obviously doesn't jibe with stock market indices more than doubling during the five years since then. On the flip side, we're seeing individual stocks maintaining rather bullish sentiment scores, despite suffering extremely painful losses. Who's right? Is everyone wrong? Have we all lost our minds? Follow me on StockTwits: @chicagosean At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Will Citigroup Break Out?
With shares of Citigroup (NYSE:C) trading around $45, is C an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Citigroup is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services. It operates in two segments: Citicorp and Citi Holdings. The company’s products and services include: consumer banking and credit, corporate and investment banking, securities brokerage, wealth management, and transaction services to consumers, corporations, governments, and institutions worldwide. Citigroup operates in a financial industry that is the backbone of just about every economy. The products and services offered by Citigroup are essential to day-to-day business in just about every industry and for every consumer. As long as there are economies, companies like Citigroup are here to stay.
T = Technicals on the Stock Chart are Strong
Citigroup stock saw a disastrous decline during the 2008 Financial Crisis that took it down to prices not seen for decades. The stock is now trying to regain its footing and has formed a value price range over the last few years. Citigroup stock is at the top of this value price range where a strong break above may be very positive for the stock. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Citigroup is trading above its rising key averages which signal neutral to bullish price action in the near-term.
(Source: Thinkorswim)
Taking a look at the implied volatility (red) and implied volatility skew levels of Citigroup options may help determine if investors are bullish, neutral, or bearish.
NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!| Implied Volatility (IV) | 30-Day IV Percentile | 90-Day IV Percentile | |
| Citigroup Options | 27.21% | 26% | 25% |
What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.
| Put IV Skew | Call IV Skew | |
| May Options | Flat | Average |
| June Options | Flat | Average |
As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.
On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.
E = Earnings Are Increasing Quarter-Over-Quarter
Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Citigroup’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Citigroup look like and more importantly, how did the markets like these numbers?
| 2013 Q1 | 2012 Q4 | 2012 Q3 | 2012 Q2 | |
| Earnings Growth (Y-O-Y) | 29.47% | 24.51% | -87.80% | -12.84% |
| Revenue Growth (Y-O-Y) | 5.59% | 5.82% | -33.03% | -9.60% |
| Earnings Reaction | 0.2% | -2.91% | 5.49% | 0.6% |
Citigroup has been improving its earnings and revenue over the last four quarters. From these figures, the markets have been pleased with Citigroup’s recent earnings announcements.
P = Excellent Relative Performance Versus Peers and Sector
How has Citigroup stock done relative to its peers, Bank of America (NYSE:BAC), HSBC (NYSE:HBC), JPMorgan Chase (NYSE:JPM), and sector?
| Citigroup | Bank of America | HSBC | JPMorgan Chase | Sector | |
| Year-to-Date Return | 17.95% | 5.77% | 3.36% | 11.42% | 10.96% |
Citigroup has been a relative performance leader, year-to-date.
NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!Conclusion
Citigroup operates in a financial industry that serves as the backbone to economies around the world. The stock has struggled to get to pre-Financial Crisis prices but may be getting ready to break above an established range. Earnings and revenue figures have been improving in recent quarters which has satisfied investors. Relative to its peers and sector, Citigroup has been a year-to-date performance leader. Look for Citigroup to OUTPERFORM.
Sunday, April 27, 2014
Icahn Says Dell Can't Change Voting Rules
Last week's increased buyout offer for Dell (NASDAQ: DELL ) coming from Michael Dell and investment firm Silver Lake, with that offer's accompanying request for a change in proxy voting rules, has elicited a response from buyout opposition leaders Carl Icahn and Southeastern Asset Management.
Today, Icahn and Southeastern issued an open letter to the special committee of Dell's board of directors, saying that the change in "the voting method for 'Unaffiliated Stockholder Approval' for the proposed Michael Dell/Silver Lake freeze-out merger raises serious questions for the Special Committee."
The original agreed-upon rules call for non-voted shares to be cast as "no" votes to the buyout. Michael Dell wrote the special committee last week that the rule should be changed because it allows a minority of unaffiliated stockholders to then block the deal. Shares that aren't voted should be ignored, he said, to allow the majority of unaffiliated stockholders to decide the vote.
But as Icahn and Southeastern wrote: "Michael Dell and Silver Lake agreed to a specific voting requirement to approve their deal. ... [They] have now offered to pay a dime for a new method of voting designed to prevent stockholders from passively dissenting on the proposed merger. We view this as a cynical attempt to circumvent the process."
Last Wednesday, Michael Dell and Silver Lake increased their offer from $13.65 a share to $13.75 a share. At that time, Dell's special committee adjourned the stockholders meeting without the scheduled buyout vote and rescheduled it for Aug. 2.
Saturday, April 26, 2014
Top 5 Electric Utility Stocks To Own Right Now
The economy is showing signs of fumbling the recovery.
Even though some Fed members have suggested easing back on central bank stimulus, the coast isn't exactly clear. Despite the spike in home sales and this week's better-than-expected report on new claims for jobless benefits, we still saw a report showing that manufacturing has slowed for the second month in a row.
The news isn't just iffy on the macro level. There are also more than a few companies that aren't pulling their own weight in this supposed economic recovery.
There are still plenty of names posting lower earnings than they did a year ago. Let's go over a few of the companies that are expected to go the wrong way on the bottom line next week.
Company
Latest Quarter EPS (estimated)
Year-Ago Quarter EPS
Seadrill (NYSE: SDRL )
Top 5 Electric Utility Stocks To Own Right Now: SunCoke Energy Partners LP (SXCP)
SunCoke Energy Partners, L.P., incorporated on July 30, 2012, manufactures coke, which is used in the blast furnace production of steel. The Company's sponsor owns the remaining 35% interest in each of Haverhill and Middletown. The Company's sponsor, through its subsidiary, owns a 55.9% partnership interest in the Company owns and controls its general partner which holds a 2% general partner interest in the Company. The Company's cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal's volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale. The Company operates in cokemaking facilities located in Ohio. In September 2013, SunCoke Energy Partners, L.P completed its acquisition of Lakeshore Coal Handling Corporation. In October 2013, the Company acquired Kanawha River Terminals LLC (KRT).
The Company licenses this advanced heat recovery cokemaking process from its sponsor. The Company's sponsor designed, developed and built, and owns and operates five cokemaking facilities in the United States, including Haverhill and Middletown with an aggregate coke production capacity of approximately 4.2 million tons per year and designed and operates one cokemaking facility in Vitoria, Brazil with a coke production capacity of approximately 1.7 million tons per year. Approximately 90% or 17.5 million tons, was for blast furnace steelmaking operations and the remaining 10% was for foundry and other non-steelmaking operations. The Company's cokemaking capacity represents stated capacity for the production of blast furnace coke. The Middletown capacity on a run of oven basis is approximately 578,000 tons per year.
The first phase of the Company's Haverhill facility or Haverhill 1, includes steam generation facilities which use hot flue gas from the cokemaking process to produce steam. The steam is sold to a third-party pursuant to a steam supply and purchase agreement. The Company! 's Middletown facility and the second phase of the Company's Haverhill facility, or Haverhill 2, include cogeneration plants that use the hot flue gas created by the cokemaking process to generate electricity. The electricity is either sold into the regional power market or to AK Steel pursuant to energy sales agreements. The Company has Approximately 400 acres in Franklin Furnace (Scioto County), Ohio, on which the Haverhill cokemaking facility is located and 250 acres in Middletown (Butler County), Ohio near AK Steel�� Middletown Works facility, on which the Middletown cokemaking facility is located.
Advisors' Opinion:- [By Aimee Duffy]
But this too is starting to shift. If you look at the most-recent IPOs on the New York Stock Exchange, you'll find many corners of the energy industry represented:
Tallgrass Energy Partners�-- Natural gas midstream, debuted May 14 KNOT Offshore Partners (NYSE: KNOP ) -- Shuttle tankers, debuted April 10 SunCoke Energy Partners (NYSE: SXCP ) -- Coal/coke making, debuted Jan. 18 CVR Refining (NYSE: CVRR ) -- Mid-continent refining, debuted Jan. 17There have also been a few MLP-related funds to hit the market this year, including Global X Junior MLP ETF�and Neuberger Berman MLP Income Fund.
Top 5 Electric Utility Stocks To Own Right Now: New Residential Investment Corp (NRZ)
New Residential Investment Corp., incorporated on September 26, 2013, is a real estate investment trust. The Company focuses on investing in, and actively managing, investments related to residential real estate. On May 15, 2013, Newcastle Investment Corp. announced that the spin-off of New Residential Investment Corp.
The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management. The Company primarily target investments in excess mortgage servicing rights, residential mortgage backed securities, residential mortgage loans and other related investments.
Advisors' Opinion:- [By Lauren Pollock]
New Residential Investment Corp.(NRZ) and other investors agreed to buy about $3.2 billion of servicing advances from Nationstar Mortgage Holdings Inc.(NSM), part of Nationstar’s plan to reconfigure its acquisition structure. The advances relate to nonagency residential mortgage loans with an unpaid principal balance of about $58 billion. Nationstar shares rose 4.1% to $42.50 in light premarket trading.
Best Value Stocks To Own Right Now: Norwood Financial Corp.(NWFL)
Norwood Financial Corp. operates as the holding company for the Wayne Bank, which provides various commercial banking products and services to individuals, businesses, nonprofit organizations, and municipalities in Pennsylvania. The company?s various deposit products include interest-bearing and noninterest bearing transaction accounts, statement savings and money market accounts, and certificate of deposits. Its loan products comprise mortgage loans to finance principal residences, as well as second home dwellings; commercial loans, including lines of credit, revolving credit, term loans, mortgages, secured lending, and letter of credit facilities; construction loans for commercial construction and single-family residences; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. The company also offers various other services, such as cash management, direct deposit, remote deposit capture, automated clearing house activity, credit ser vices, trust, investment products, real estate settlement services, and Internet banking. It operates five offices in Wayne County, three offices in Pike County, and three offices in Monroe County, and also serves Lackawanna and Susquehanna counties. The company operates eleven automated teller machines in its branch locations. Norwood Financial Corp. was founded in 1870 and is headquartered in Honesdale, Pennsylvania.
Advisors' Opinion:- [By Marc Bastow]
Bank holding company Norwood Financial (NWFL) raised its quarterly dividend 7.1% to 30 cents per share, payable on Feb. 3 to shareholders of record as of Jan. 15.
NWFL Dividend Yield: 4.39%
Top 5 Electric Utility Stocks To Own Right Now: MGP Ingredients Inc.(MGPI)
MGP Ingredients, Inc. produces ingredients and distillery products in the United States. It processes wheat flour and corn into various products through an integrated production process. The company operates in three business segments: Ingredient Solutions, Distillery Products, and Other. The Ingredient Solutions segment products consist of specialty proteins, specialty starches, vital wheat gluten, commodity wheat starch, and mill by-products. The Distillery Products segment offers food grade alcohol; fuel grade alcohol, commonly known as ethanol; and distiller?s feed and carbon dioxide, which are co-products of the company?s distillery operations. The Other segment products comprise resins, and plant-based polymers and composites. MGP Ingredients, Inc. sells its products directly or through distributors to the manufacturers and processors of finished goods. The company was founded in 1941 and is headquartered in Atchison, Kansas.
Advisors' Opinion:- [By John Udovich]
Small cap ingredients stock Balchem Corporation (NASDAQ: BCPC) jumped 22.76% yesterday on news about an acquisition, meaning its worth taking a closer look at the stock along with potential peers like small cap MGP Ingredients Inc (NASDAQ: MGPI) and the PowerShares Dynamic Food & Beverage ETF (NYSEARCA: PBJ).
Top 5 Electric Utility Stocks To Own Right Now: BP p.l.c.(BP)
BP p.l.c. provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. Its Exploration and Production segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trading of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). This segment has exploration and production activities in Angola, Azerbaijan, Canada, Egypt, Norway, Russia, Trinidad and Tobago, the United Kingdom, and the United States, as well as in Asia, Australasia, South America, North Africa, and the Middle East. This segment also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing and transportation, as well as NGL extraction facilities. BP p.l.c. has interests in the Trans-Alaska pipeline system, the Forties pipeline system, the Central Area transmission sys tem pipeline, the South Caucasus Pipeline, and Baku-Tbilisi-Ceyhan pipeline, as well as in LNG plants located in Trinidad, Indonesia, and Australia. The company?s Refining and Marketing segment involves in the supply and trading, refining, manufacturing, marketing, and transportation of crude oil, petroleum, and petrochemicals products and related services to wholesale and retail customers primarily under the BP, Castrol, ARCO, and Aral brands. Its Other Businesses and Corporate segment produces and markets rolled aluminum products, as well as generates energy through wind, solar, biofuels, hydrogen, and carbon capture and storage sources; and engages in shipping activities. The company was founded in 1889 and is headquartered in London, the United Kingdom.
Advisors' Opinion:- [By Matt DiLallo]
Contango can also affect a company like LINN Energy (NASDAQ: LINE ) which seeks to hedge all of its production for the long term. A good example of this can be seen last year when LINN Energy�bought the Jonah Field from BP (NYSE: BP ) . Upon closing the deal, LINN hedged 100% of the expected oil and natural gas production through 2017. If the market were in contango at the time it could have had an impact on the future profits LINN expects to produce from that asset. It would mean that production sold just after closing would have netted a higher sale price than oil and gas that won't be produced until 2017. That's one reason why LINN had been using puts to hedge its production; it wanted to keep some of that upside.
- [By Eric Volkman]
A deal conferring a set of BP's (NYSE: BP ) American assets to Tesoro (NYSE: TSO ) has been finalized. The latter is the owner of the petroleum giant's now-former refinery in Carson, near Los Angeles, and a network of more than 800 retail stations. It also gains control of the related logistical and marketing assets in the region. All told, the value of the deal is roughly $2.4 billion.�
Rambus Inc. (RMBS) Q1 Earnings Preview: Strong, But Will It Be Strong Enough?
Rambus Inc. (NASDAQ:RMBS) will hold a conference call on April 21, 2014 at 2:00 p.m. Pacific Time to discuss its first quarter 2014 results. This call will be webcast and can be accessed via Rambus' web site at investor.rambus.com.
Wall Street anticipates that the memory chip maker will earn $0.03 per share for the quarter, which is $0.12 more than last year's loss of $0.09 per share. iStock expects RMBS to miss Wall Street's consensus number. The iEstimate is $0.02, a penny less than expected.
Sales, like earnings, are expected to grow, rising 8.4% year-over-year (YoY). Rambus' consensus revenue estimate for Q1 is $72.45 million, more than last year's $66.87 million.
[Related -Rambus Inc. (RMBS): Worth The Risk?]
The company's technology solutions include memory, chip interfaces and architectures, end-to-end security, and advanced LED lighting. It focuses on designing, developing, and licensing technology related to memory and interfaces; and providing various services, including know-how and technology transfer, product design and development, system integration, and other services.
The semiconductor has bypassed Wall Street's consensus estimate 11 of the last 16 quarterly checkups. The average bullish surprise is pretty big at 745% more than expected, which works out to an average of $0.17 more than the street's outlook.
Meanwhile, the five misses have been more dramatic, falling short of the mark by as much as -700%, as little as -3.33% while averaging 204% less than forecasted, which works out to -$0.06 less than anticipated.
[Related -Stocks Gain Ahead Of Fed Decision; FLIR Systems, Inc. (FLIR) Jumps]
Investors spilt their reaction to Rambus' last 16 quarterly announcements. Eight of the responses were green and red. Typically, the stock fell by -10.25% in the tree days surrounding eight of the last 16 while increasing by an average of 4.41% for the other eight announcements.
Rambus relies heavily on a handful of companies. Names like Samsung, SK hynix and Micron accounted for 62% of RMBS' revenue in 2013. So far, Micron had a strong quarter and Samsung guided in the middle of their previous guidance, but still strong YoY. That's probably why Wall Street believes Rambus's top and bottom lines are on the rise.
Rambus's financial health appears to be fit heading into Monday afternoon's announcement. Sales increased by 16% in 2013 while the cost of goods sold were up 17%. Of course, we'd prefer for the numbers to be flipped, but they are generally in-line. However, marketing, general and administrative costs falling 32% YoY more than made up the difference.
That being said, management also cut back on research and development. iStock would much rather see the line-item keep pace with revenue growth. Tomorrow could become an issue if you aren't investing in it.
Overall: Rambus Inc. (NASDAQ:RMBS) is positioned to have a strong quarter YoY; however, the iEstimates suggests it might not be as strong as expected.
Show Us Your Car: '65 Ford Mustang still raises…
His maroon over black interior coupe is indeed one nice 1965 model.
He's had it since he turned 16 in 1970, and while he's added a few more Mustangs to his collection over the years, this is the one that the cattle farmer and rancher came of age in and raised a family with.
He earned the car, and he has never let go of it.
"When I was 16 years old, I had to work two summers at $1 an hour driving a tractor and irrigating so that I'd have enough money to buy it,'' he says.
Harsh initially had his eye on the fastback version, but that was a bit pricey for a farm boy on a budget in Bartley, Neb. So when this sharp, clean coupe became available used, he jumped on it.
"I figured if my dad was going to let me have a chance to buy it, I better grab it when I could because I always wanted a Mustang,'' he says. "I've had it ever since.''
Harsh's car is mostly stock, with a 289 cubic inch engine and four barrel carburetor. It has 122,000 miles and the original three-on-the-floor manual transmission.
The car still has the original black vinyl seats and black carpet, with normal wear revealing a patina of originality that is highly prized in today's collector market.
He put a small lift kit on the car, better to handle gravel and dirt farm roads and lending an aggressive look. While he still has the original steel wheels and spinner hubcaps, he drives the car on a set of brushed alloy wheels that look period correct.
Harsh was showing the car off at Las Vegas Speedway, where the Mustang Owners Club and Ford marked the 50th anniversary of the introduction of the car that captured the hearts of many of his generation.
He drove the car from Nebraska to Las Vegas last week, attracting smiles and thumbs up from other drivers.
"The most fun thing about a Mustang is stepping on the gas and going. That's the most fun there is. Listen to that exhaust and listen ! to it go.''
When you love a car model, one often is not enough.
Harsh has three more Mustangs at home – a 1970 Mach 1, a 2005 Saleen and a 2008 Shelby Mustang GT500KR. That Shelby is a 662 hp performance monster that Car and Driver magazine wrote "looks and sounds as badass as anything on the road.''
"I've got four boys; I had to have one Mustang for each one so we didn't have any argument,'' Harsh says.
Friday, April 25, 2014
Mid-Day Market Update: Pandora Shares Tumble After Q1 Results; Weatherford Spikes Higher
Related BZSUM Mid-Morning Market Update: Markets Open Lower; Ford Profit Misses Street View #PreMarket Primer: Friday, April 25: More Sanctions On Russia Likely Midway through trading Friday, the Dow traded down 0.79 percent to 16,370.72 while the NASDAQ tumbled 1.43 percent to 4,088.84. The S&P also fell, dropping 0.70 percent to 1,865.40.
Leading and Lagging Sectors
Utilities sector was the only gainer in the US market on Friday. Leading the sector was strength from FirstEnergy (NYSE: FE) and Wisconsin Energy (NYSE: WEC). Technology shares declined around 1.53 percent in Friday's trading.
Top losers in the sector included CommVault Systems (NASDAQ: CVLT), off 28 percent, and Mellanox Technologies (NASDAQ: MLNX), down 13 percent.
Top Headline
Ford Motor Co (NYSE: F) reported a drop in its first-quarter profit. Ford's quarterly profit slipped to $989 million, or $0.24 per share, versus a year-ago profit of $1.61 billion, or $0.40 per share. Its revenue rose to $35.9 billion versus $35.6 billion. However, analysts were projecting earnings of $0.31 per share on revenue of $34.54 billion.
Equities Trading UP
Gigamon (NYSE: GIMO) shares shot up 7.77 percent to $17.33 after the company announced Q1 results. Gigamon reported a Q1 loss of $0.07 per share on revenue of $31.80 million. Needham upgraded the stock from Buy to Strong Buy.
Shares of Weatherford International (NYSE: WFT) got a boost, shooting up 10.02 percent to $20.25 after the company reported upbeat quarterly earnings. Weatherford reported its Q1 earnings of $0.13 per share on revenue of $3.60 billion.
SunPower (NASDAQ: SPWR) shares were also up, gaining 5.15 percent to $33.67 after the company reported stronger-than-expected first-quarter results. SunPower reported its earnings of $0.49 per share on revenue of $683.70 million.
Equities Trading DOWN
Shares of CommVault Systems (NASDAQ: CVLT) were 28.32 percent to $49.16 after the company reported downbeat quarterly revenue. CommVault reported earnings of $0.52 per share on revenue of $156.80 million. However, analysts were expecting a profit of $0.47 per share on revenue of $160.16 million.
Pandora Media (NYSE: P) shares tumbled 13.01 percent to $24.53 on weak Q1 earnings and Q2 outlook. Pandora reported a Q1 loss of $0.13 per share.
Yingli Green Energy Holding Co (NYSE: YGE) was down, falling 14.25 percent to $3.62 after the company priced follow-on public offering of 25 million ADSs at $3.50 per ADS.
Commodities
In commodity news, oil traded down 1.08 percent to $100.84, while gold traded up 0.84 percent to $1,301.50.
Silver traded up 0.01 percent Friday to $19.72, while copper rose 0.05 percent to $3.09.
Eurozone
European shares were lower today.
The Spanish Ibex Index dropped 1.47 percent, while Italy's FTSE MIB Index fell 2.07 percent.
Meanwhile, the German DAX tumbled 1.53 percent and the French CAC 40 fell 0.80 percent while U.K. shares declined 0.38 percent.
Economics
The preliminary reading of Markit Services PMI came in at 54.20 in April, versus economists' expectations for a reading of 55.50.
The final reading of Reuter's/University of Michigan's consumer sentiment index rose to 84.10 in April, versus a prior reading of 82.60. However, economists were expecting a reading of 83.00.
Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Intraday Update Markets Movers Tech
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Most Popular Apple Could Slide Towards $420, Creative Global Says Apple Soars Following Q2 Top & Bottom Line Beat, Stock Split, Dividend Raise, Increased Buyback Market Wrap For April 23: S&P 500 Ends Winning Streak, Apple Announces 7-for-1 Stock Split Earnings Scheduled For April 24, 2014 Apple Earnings Roundup: iPhone Strength, Stock Split, Buybacks And More Apple Earnings Preview: Will iPhone Sales Disappoint Investors? Related Articles (CVLT + BZSUM) Mid-Day Market Update: Pandora Shares Tumble After Q1 Results; Weatherford Spikes Higher Mid-Morning Market Update: Markets Open Lower; Ford Profit Misses Street View Stocks Hitting 52-Week Lows #PreMarket Primer: Friday, April 25: More Sanctions On Russia Likely Market Wrap For April 24: Apple's Smashing Earnings Overshadowed By Ukraine Concerns Mid-Afternoon Market Update: Apple Hangs onto Gains as Fusion-io Drops on EarningsThursday, April 24, 2014
Taco Bell to test fast-casual restaurant
Except it's not Taco Bell. It's U.S. Taco Co., a hush-hush, fast-casual restaurant project developed deep in the bowels of Taco Bell's Irvine, Calif., headquarters building over the past year.
Later this summer, the first U.S. Taco is scheduled to open within eye-shot of the Pacific Ocean in surfer haven Huntington Beach, Calif.
Oh, and its logo is a vibrant pink, Day of the Dead sugar skull.
Logo for U.S. Taco Co.(Photo: TACO BELL)
Perhaps this, alone, tells you something about the U.S. Taco's key target: Millennials — with dough. Like the ones who eat several times a week at Chipotle or Panera Bread.
You won't find 99-cent tacos at U.S. Taco Co. The restaurant will sell tacos for as much as $7. Ten different, soft-shell, open-faced tacos initially will be the only menu entrees. One's made with Maine lobster. Another's layered with brisket from Texas. And yet another veggie version is drizzled with Wisconsin cheese.
FOOD WARS: Taco Bell's breakfast beating McDonald's according to survey
MORE: McDonald's vs. Taco Bell breakfast war goes viral
"We realized that at Taco Bell we weren't reaching all of those who want Mexican food," says Jeff Jenkins, senior brand manager. So, Taco Bell CEO Greg Creed put the project in motion last year. It was kept secret from most Taco Bell employees, says Jenkins. "It was tucked away in a part of the building where not a lot of people venture."
RELATED: Meet one of the real Ronald McDonalds in Taco Bell ad
This is not your grandfather's Taco Bell. If you walk out of Taco Bell spending $5 to $7, you'll likely double that at U.S. Taco Co. to the tune of $10 to $15.
"Every! one in the U.S. has become a foodie," says Jenkins. "The first thing young people do in a restaurant is take out their camera and take a picture of their food — and post it on Instagram." Consider: Nearly half of the images posted on Instagram are of food.
This is Taco Bell's long-awaited move to tap into the restaurant world's fastest-growing segment: fast-casual. This is the land inhabited by success stories like Chipotle and Panera Bread — who have figured a way to directly appeal to Millennials. In fact, continued growth in the fast-casual sector — particularly via fast-food chains expanding into the sector — is the No. 1 restaurant trend that the research firm Technomic projects for 2014.
Taco Bell executives already are planning a second U.S. Taco Co. location in Southern California — but they won't say where. The second store, and those after it, will sell milkshakes spiked with beer. (It couldn't get an alcoholic beverage permit for the Huntington Beach location.)
For extra Millennial appeal, the place will pulsate with rock music. It will have an outdoor dining patio. And the kitchen will be set behind glass, so customers can watch the "food theater," says Jenkins.
Most important: Don't look for the Taco Bell name anywhere in the restaurant. "This is an entirely separate brand," says Jenkins. "You will not see Taco Bell."
Not even a Waffle Taco.
Gilead Sciences: “Officially a Value Stock”
Earlier this month, RBC Capital Markets wondered whether Gilead Sciences (GILD) is actually a value stock. After last night’s earnings release, Piper Jaffray’s Joshua Schimmer and team say that’s now officially the case.
Bloomberg They explain why Gilead’s “officially a ‘value’ stock:”
[Gilead Sciences] reported one of the most impressive beats in biopharma history, led by Sovaldi’s $2.27B vs consensus $0.94B and was above expectations in the U.S., EU and ROW. Equally importantly, the performance highlighted the sizable upside on operating margins and taxes. As consensus estimates increase to reflect these factors, we believe [Gilead Sciences] will appeal to value investors (and, eventually dividend investors). Along with ongoing launch execution in EU/ROW, the all-oral GT1 combination in the U.S. and beyond and advancing the pipeline including idelalisib, this bodes well for share outperformance…With our new estimates, [Gilead Sciences] now trades at just 12x our 2015 EPS estimate and 10x our 2015 EPS estimate, both of which may yet prove conservative.
JPMorgan’s Geoff Meacham and team make a similar point:
Clearly, Gilead's dramatic 1Q results…should drive Street forecasts significantly higher. Indeed, we've raised Sovaldi forecasts by ~50% and non-GAAP EPS by ~30% for 2014-2015. The debate, however, is not whether 1Q was stellar (it was), it's on payer influence, patient tiering and hep C franchise duration. While the Street is busy fretting over these issues, [Gilead Sciences] shares will be trading at ~11.5X our new (and still conservative) 2015 estimate of $6.52, yet with a 100% earnings growth rate for 2014-2015E.
Might that be the reason that Gilead’s shares are climbing today, even as most other big biotech names get clobbered. Gilead has risen 3.2% to $75.17 at 12:15 p.m. today, while Amgen (AMGN) has fallen 5.2% after missing earnings forecasts and Biogen Idec (BIIB) has dropped after it too disappointed. The SPDR S&P Biotech ETF (XBI) has declined 2.2% to $131.13, while the iShares Nasdaq Biotechnology ETF (IBB) is off 1.4% at $231.54.
Wednesday, April 23, 2014
Sales of Existing U.S. Homes Fall for Third Straight Month
Sales of previously owned homes fell in March for the third consecutive month as rising prices and cold weather discouraged would-be buyers.
Closings, which typically take place a month or two after a contract is signed, fell 0.2% to a 4.59 million annual rate, the lowest level since July 2012, the National Association of Realtors reported today in Washington. The median forecast of 75 economists surveyed by Bloomberg called for sales to slow to a 4.56 million annual rate.
Rising home prices have outpaced wage growth, putting ownership out of reach for some Americans. Mortgage rates, while still near historic lows, have been rising and harsh winter weather in January and February probably prevented would-be new owners from venturing out to look for real estate.
“Sales are showing some lingering effects of the weather,” said Kevin Cummins, an economist at UBS Securities LLC in Stamford, Connecticut. “It’s probably going to take a couple more months until you see a bounce.”
Stocks held earlier gains after the report. The Standard & Poor’s 500 Index climbed 0.4% to 1,879.46 at 10:20 a.m. in New York.
Estimates in the Bloomberg survey ranged from 4.5 million to 4.85 million. February’s pace was unrevised at 4.6 million.
“Sales may be stabilizing,” Lawrence Yun, NAR chief economist, told reporters as the figures were released. “I do expect some spring bounce in the upcoming months.”
Median Price
The median price of an existing home climbed 7.9% from March 2013 to $198,500, today’s report showed.
At the current sales pace, it would take 5.2 months to sell houses compared with 5 months at the end of February. That still constitutes a “tight” market that favors sellers over buyers, Yun said.
While existing home sales have improved since hitting a low pace of 3.45 million in July 2010, rising interest rates and higher prices have pushed transactions down from a post- recession high of 5.38 million reached in July 2013.
The average rate on a 30-year, fixed mortgage fell to a six-week low of 4.34% in the week ended April 17. A year ago, the rate averaged 3.41%, according to Freddie Mac in McLean, Virginia.
Work began on fewer new homes than forecast in March, Commerce Department data showed last week. Builders also have fewer houses in the pipeline, with the number of permits declining 2.4% last month.
Mortgage Lending
Housing’s slow recovery is being felt by mortgage lenders, many of which have cut staffing. Since the beginning of the year, Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. have eliminated workers in their mortgage divisions.
At PNC Financial Services Group, loans used to buy homes fell to $1.9 billion in the first quarter compared to $4.2 billion a year earlier, Chief Financial Officer Rob Reilly said. Total revenue for the Pittsburgh-based bank could fall this year in part because of reduced demand for mortgages, he said.
“We announced expense reductions in residential mortgage during the fourth quarter of last year and we have fully captured those savings,” Reilly said on an April 16 earnings call. “In this environment, we will remain focused on disciplined expense management.”
The High Cost of Doing Business
In the following video, Fool contributor Matt Thalman discusses how the cost of doing business in certain industries can really cut a company's profits down to just a few percent of its total revenue. A company like Alcoa (NYSE: AA ) or United States Steel (NYSE: X ) are two great examples of organizations that are at the mercy of an industry-wide commodity pricing system, which has reduced profit margins to nearly nothing over the past few years.
With low margins, the likelihood that a company can make it through another tough economic climate is very unlikely. So, as an investor, focusing on companies that have pricing power and strong double-digit profit margins will help ensure that the next recession doesn't send your portfolio into the dumps.
Tax increases that took effect at the beginning of 2013 affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes, and potentially even lower your tax bill. In our brand-new special report, "How You Can Fight Back Against Higher Taxes," the Motley Fool's tax experts run through what to watch out for in doing your tax planning this year. With its concrete advice on how to cut taxes for decades to come, you won't want to miss out. Click here to get your copy today -- it's absolutely free.
Tuesday, April 22, 2014
Change Agents: Myhrvold's many missions
There's Bill Gates, best known now for tackling social issues of global importance via his foundation. There's co-founder Paul Allen, who, while keeping a hand in the tech space, has claimed the cultural spotlight as boss of Seattle's Super Bowl-winning Seahawks and owner of impressive megayachts.
When it's suggested to Nathan Myhrvold, Microsoft's first chief technology officer who joined in 1986 and left in 2000, that he doesn't seem the sporting or yachting type, the first of many sonic-boom laughs echoes around his dinosaur skeleton-filled office.
"You should have interviewed me two weeks ago," says Myhrvold (pronounced MER-vold), whose boyish demeanor defies his age, 54. "I was on a yacht diving in Bonaire."
Maybe the man does have at least one indulgent bone? Fat chance: Myhrvold wasn't in the Caribbean to lounge about but rather to polish his considerable photography skills.
Perhaps it's best to get this out of the way now. If our country has a living Renaissance figure, Myhrvold would qualify for the Benjamin Franklin-esque title. The man, who by his own admission "is not very good at dabbling," has charged into a range of fields and wound up challenging or changing the status quo.
"From the time I was little, I was interested in multiple things, checking out library books on everything from cooking to math," he says, sitting between a life-size skull of an ancient shark-eel called Dunkleosteus and a small plastic model of a Gulfstream V jet ("I have the big one, too," he allows with a smile).
Other souvenirs scattered about include a World War II-era Japanese anti-aircraft training gun, a wall-size periodic table of elements filled with actual samples of almost all the elements and, inevitably, the showstopper: the enormous head of the actual Tyrannosaurus Rex model used during the filming of Jurassic Park.
"When I was a kid, my mom would say, 'You ! really need to focus if you're going to amount to anything.' And in hindsight, she was likely right; maybe I could have accomplished more than I have," says the married father of two sons who have inherited his scientific mind. "But that's just not been me."
Mama Myhrvold need not have worried. Her son hasn't been frittering away his life since departing Microsoft.
A longtime lover of dinosaurs, he recently published a scientific paper arguing that the creatures' growth rates were actually a tenth of what the prevailing research indicated.
A foodie since long before the term was chic, he is in the midst of self-publishing a series of photo-driven books called Modernist Cuisine, which deconstruct the science of cooking and sell out despite a price tag pushing $600.
Still profoundly disturbed by the events of Sept. 11, Myhrvold — a Los Angeles-reared, Princeton-trained physicist who did post-graduate work under the legendary Stephen Hawking at Cambridge — is actively meeting senior U.S. officials to discuss the looming perils of terrorists waging war with biological weapons.
This has nothing to do with his day job running Intellectual Ventures, a company that buys patents ("What venture capital did for start-ups, we want to do for inventions," he says). Or its side venture, Global Good, whose projects include using lasers to zap the wings off malarial mosquitoes, which is being partly funded by the foundation run by good friend and former boss Gates.
"Look, I don't play golf," Myhrvold says. "Some of these projects are truly for the good of the world, and others, I won't attempt to defend other than to say I love doing them. When people ask me, 'Why did you get interested in dinosaurs?,' I just say, 'Why did you lose interest in them?' Because we all loved them as kids. I guess for me, it's often just a huge case of arrested development."
That is the key to Myhrvold's youthful attitude, says Bran Ferren, a pioneering technologist and co-founder of Applied Mi! nds who m! et his friend a few decades back when he was CTO at Disney Imagineering.
"His childlike curiosity about things keeps him young," says Ferren, who shares a beard, a slightly high-pitched voice and a passion for exploring with his pal. "As for his varied interests, I'd like to think that's what normal ought to be. We may be in an age of hyper-specialization, but people innately are curious about many things."
Ferren adds that Myhrvold always dives into something "with a mission to make a contribution." As for relaxing, "for guys like him, it's not about finding a new beach to lie on. When we go on a photography trip, that in and of itself helps clear the mind."
Nathan Myhrvold has quite the appreciation for dinosaurs. Check out some of the art around his office. VPC
Myhrvold is what futurist Paul Saffo calls a relatively new breed of public citizen whose professional, and often tech-driven, good fortune allows them to contribute to society at a higher level.
"The best news for paleontology, astronomy, cooking and all those other fields was his leaving Microsoft," says Saffo. "I call him an entrepreneurial intellectual, someone with the drive, resources and brains to go deep on matters that need attention. With any luck, he'll inspire other wealthy individuals to put their money and brains to good use."
Myhrvold — who led the development of Windows software and has an estimated net worth of $650 million — is pleased that "the Silicon Valley system allows people with a technical bent to dream of being rich." But he offers a cautionary rejoinder.
"The dot-com boom created a such a gold rush that some people get focused on creating me-too companies, so instead of doing something hard, they say 'Let's get 17 guys and do the next WhatsApp and sell it to Facebook for a gajillion dollars,'" he says. "Without taking anything away from that, we don't want to be a nation that only tries to solve small problems. That takes energy away from problems that may be more profound."
Will all due respect to the dinosaurs and finding a better way to cook a steak, there's little doubt what ranks highest on Myhrvold's intellectual to-do list. Close to the top would be the mosquito-zapping project, which takes laser-printer technology and adapts it to the pressing needs of sub-Saharan Africa. But at the pinnacle would be bio-terror.
The horrors of 9/11 are apparent, he says, but as many people — 3,000 — die each month in traffic accidents. "Look down the road 10 or 20 years and then ask, what could kill a million Americans? That's bio-terrorism," he says. "Are we doing the right things for it? I have so far not found anyone in government who has said, 'Yes, we're doing the right things.' "
Myhrvold made contact via an Intellectual V! entures employee with White House connections, who forwarded his boss's 50-page paper on the topic. Myhrvold says he's been impressed with the serious approach taken by various officials, but notes that "coordinating and prioritizing those efforts is critical."
He's essentially suggesting that a position of bio-terror czar could help anchor the efforts: "The most embarrassing thing about 9/11 is various parts of the government had suspicions about those (terrorists), and they didn't do anything about it."
The eternal optimist lets slip a rare sigh.
"When I write cookbooks, it's all in my control, but with this, nothing is in my control," he says. "But I'm going to keep trying. I can't be any other way."
_____
ABOUT NATHAN MYHRVOLD, 54
What: CEO, Intellectual Ventures, a patent-purchasing company
Where: Bellevue, Wash.
Why is dinosaur research so important? "You can make an argument that dinosaurs could save humanity. We now know they went extinct due to a meteorite that hit Earth, which caused people to start looking up in the sky for them. If you find one and it's a week away, well too bad, we had our run. But if it's 50 years away, you'd suddenly have the most important international project in history."
Why are you working on a laser that can kill mosquitoes? "Most of the tech industry makes tools or toys for the rich world. It's great fun, and I made money in that world myself. But the rich world doesn't need its life transformed; the poorest people do."
What's the key to fostering innovation in America? "I'm not a sports guy, but we all know the best hitter in baseball has a .400 average. That really means he's a miss-er, not a hitter; he misses 60% of the time. In the innovation game, you're batting .100 if you're lucky. So, baseball arranged its rules, and we need to set the innovation game's rules so that missing 90% of the time is OK. You need to make it culturally OK to fail."
USA TODAY's Change Agents series highlights innovato! rs and en! trepreneurs looking to change business and culture with their vision. E-mail Marco della Cava at mdellacava@usatoday.com. Follow him on Twitter: @marcodellacava.
Monday, April 21, 2014
Top Airline Companies To Watch For 2015
With shares of Priceline (NASDAQ:PCLN) trading around $803, is PCLN an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Priceline is an online travel company that offers its customers hotel room reservations at a growing number of hotels worldwide through the Booking.com, priceline.com, and Agoda brands. In the United States, the company also offers its customers reservations for car rentals, airline tickets, vacation packages, destination services, and cruises through the priceline.com brand. It offers car rental reservations worldwide through rentalcars.com. Companies like Priceline are well-positioned to accommodate consumers with travel arrangements at competitive prices into the future. As economies grow and continue to recover, consumers worldwide are looking at travel as an excellent way to spend discretionary income.
T = Technicals on the Stock Chart are Strong
Top Airline Companies To Watch For 2015: Southwest Airlines Co (LUV)
Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).
AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.
As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.
Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.
Advisors' Opinion:- [By Ben Levisohn]
Shares of United Continental have gained 0.4% to $44.53 at 3:11 p.m., while Delta Air Lines has risen 1.5% to $33.21, American Airlines has advanced 0.9% to $36.45 and Southwest Airlines (LUV) is up 0.8% at $23.36. The S&P 500 has dropped 0.6%.
- [By Matt Thalman]
In the following video, Fool contributor Matt Thalman discusses why he believes MGM Resorts' (NYSE: MGM ) recent move to partner with both Southwest Airlines (NYSE: LUV ) and Hyatt Hotels (NYSE: H ) will greatly benefit not only MGM but also its two new partners.
Top Airline Companies To Watch For 2015: Alaska Air Group Inc. (ALK)
Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.
Advisors' Opinion:- [By Adam Levine-Weinberg]
Southwest: still America's favorite
Southwest Airlines once again had the lowest complaint rate in the airline industry last year, at 0.25 complaints per 100,000 passengers. Southwest's complaint rate was more than 80% below the industry average, and 50% below second-place finisher Alaska Airlines (NYSE: ALK ) . The high level of customer satisfaction highlights the value of Southwest's generally cheerful staff, because Southwest's performance on the more objective criteria in the AQR survey was not particularly impressive. - [By Jonathan Yates]
A useful way to determine how well a company is being managed for debt and other considerations is to compare it with the "best practices" in the industry. Spirit Airlines (NASDAQ: SAVE) and Alaska Airlines (NYSE: ALK) are, by far, the best run airlines-- �with each having a profit margin of around 9.50 percent. The debt-to-equity ratio for Alaska Airlines is 0.50. Spirit Airlines has no debt.
- [By Brian Stoffel]
The email surveys have been responsible for a number of changes by the airlines -- from decisions about charging for checked baggage to the types of music made available on the airplane's radio. According to the Journal,�Alaska Airlines (NYSE: ALK ) actually began pouring wine from full-size bottles instead of using single-serve bottles after hearing from customers.�
- [By Stephen Quickel]
Seattle-based Alaska Air Group (ALK), under attack by Delta Air Lines on its home turf, has been expanding southward into Salt Lake City, New Orleans, and Tampa.
5 Best Clean Energy Stocks To Watch Right Now: Energie Holdings Inc (ELED)
Energie Holdings Inc, formerly Alas Aviation Corporation, incorporated on June 10, 2013, is in the process of acquiring, assembling and operating passenger airlines, air cargo and related ground service operators. The Company's business model includes purchasing low-scale regional operators then assembles and integrates them as subsidiaries. Corporacion Ygnus Air, S.A. (Cygnus) is a wholly owned subsidiary of the Company. It is engaged in acquisition discussions with several operators throughout Europe and around the world.
Cygnus is an aeronautical company is an integrated provider of air cargo transportation specializing in medium and long-range cargo routes. Cygnus operates a fleet of two Boeing 757-200PCF cargo jets to Europe and Africa. Cygnus has managed multi-plane operations, carrying both freight and passengers throughout Spain, Europe, the Middle East, Africa and the Americas.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks Wi-Fi Wireless Inc (OTCMKTS: WFWL), Energie Holdings Inc (OTCMKTS: ELED) and Trend Exploration, Inc (OTCMKTS: TRDX) surged 47.06%, 25% and 12.50%, respectively, last Friday. However, none of these small cap stocks appear to be the subject of paid promotions or investor relations activities ��something that could be a good thing for investors who are not traders. Keeping that in mind, are these three small cap stocks going to be winners over the long term? Here is a closer look to help you decide on an investing or trading strategy:
Top Airline Companies To Watch For 2015: Global Eagle Entertainment Inc (ENT)
Global Eagle Entertainment Inc., formerly Global Eagle Acquisition Corp., incorporated on February 2, 2011, is the full service platform offering both content and connectivity for the worldwide airline industry. Through its combined content, distribution and technology platforms, the Company provides airlines and the millions of travelers they serve with the offering of in-flight video content, e-commerce and information services. Through its Row 44 subsidiary, the Company utilizes Ku-band satellite technology to provide airline passengers with Internet access, live television, shopping and travel-related information. As of February 1, 2013, the Company installed on more than 450 aircraft, Row 44 has the fleet of connected entertainment platforms operating over land and sea globally. In addition, through its AIA division, the Company provides film and television content, games and applications to more than 130 airlines worldwide. In July 2013, the Company announced the acquisition of Post Modern Group, LLC. In October 2013, Global Eagle Entertainment Inc announced that it has acquired Travel Entertainment Group Equity Limited, the United Kingdom-based parent company of IFE Services Limited (IFE Services) from GCP Capital Partners LLP.
The Company�� Row 44 subsidiary provides satellite-based broadband service to the global airline industry. The Company�� Advanced Inflight Alliance (AIA) business is the provider of content services, products and solutions for the global inflight entertainment market. AIA also serves as the exclusive representative in sourcing Hollywood content for 60 airline customers and is the exclusive distributor of content from select Hollywood studios and independent producers to the airline market. In addition, AIA is the airline distributor of Asian, Bollywood, European, Latin American and Middle Eastern content.
Advisors' Opinion:- [By Richard Stavros]
This was particularly the view of Leo Denault, CEO of Entergy Corp (NYSE: ENT). Mr. Denault and his fellow panelist, James Robo, CEO of NextEra Energy Inc (NYSE: NEE), offered rather refreshing perspectives on the industry’s challenges, as they are pursuing strategies that are directionally opposed.
Top Airline Companies To Watch For 2015: Virgin Australia Holdings Ltd (VBHLF)
Virgin Australia Holdings Limited (VAH) is an Australia-based company engaged in the development and operation of domestic and international airlines. VAH�� fleet includes ATR-72, Embraer 190, Boeing 737-700, Boeing 737-800, AIRBUS A330 and Boeing 777-300ER. It product includes Airbus A330 Business Class. During the fiscal year ended June 30, 2012, the Company carried 19,468,929 guests on 216 city pairs to 52 destinations, and operated 162,817 flights. On February 22, 2012, under the proposal, all of the shares in the international airline business of Virgin Australia were transferred to a new holding company, Virgin Australia International Holdings Pty Ltd. In April 2013, it acquired 100% of the issued share capital in Skywest Airlines Ltd. In July 2013, Virgin Australia Holdings Limited announced that it has acquired 60% interest of Tiger Airways Australia Pty Limited from Tiger Airways Holdings Limited. Advisors' Opinion:- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australian stocks gave ground in early Friday trading, with banks broadly lower after overnight losses in the U.S., where investors worried that better-than-expected data would prompt the Federal Reserve to roll back stimulus soon. The S&P/ASX 200 (AU:XJO) lost 0.4% to 5,178.30, as National Australia Bank Ltd. (AU:NAB) (NAUBF) fell 1.8%, Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) lost 0.8%, and Macquarie Group Ltd. (AU:MQG) (MCQEF) retreated 1.3%. Among the resource shares, losses for gold both in New York and in early Asian electronic trade helped send Evolution Mining Ltd. (AU:EVN) (CAHPF) down 1.9% and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) off 4.5%, though Newcrest Mining Ltd. (AU:NCM) (NCMGF) held the drop to 0.4%. Oil prices managed a modest gain, however, resulting in a 0.2% rise for Oil Search Ltd. (AU:OSH) (OISHF) and Karoon Gas Australia Ltd. (AU:KAR) (KRNGF) , while Woodside Petroleum Ltd. (AU:WPL)
Top Airline Companies To Watch For 2015: Delta Air Lines Inc (DAL)
Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.
Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.
In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.
Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.
The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.
SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.
The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.
The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.
The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.
Advisors' Opinion:- [By Dimitra DeFotis]
On Wednesday, a federal judge cleared the way for�American Airlines parent�AMR�(AAMRQ) to exit bankruptcy, which hastens the merger of American Air and�U.S. Airways Group�(LCC). Shares of AMR are down nearly 1% this morning, while U.S. Air stock dropped nearly 2%.�The merged airline would be up against United Continental Holdings (UAL) and Delta Air Lines (DAL), which merged with Northwest. Shares of each are down 1%.
- [By Jonas Elmerraji]
Another key trend that's pumping profits into airlines has been industry consolidation. In the last few years we've seen Delta Air Lines (DAL) swallow up Northwest, United and Continental merge together to form United Continental (UAL), and Southwest (LUV) buy AirTran, in addition to scores more lower-profile combinations of every shape and size.
A proposed merger between American Airlines parent AMR (AMR) and US Airways Group (LCC) is the latest big-legacy combination to hit the headlines.
Industry consolidations cut costs, they improve efficiency, and they improve airlines' pricing power on their most lucrative routes.
The industry shakeups have been dramatic enough that you don't even need to crack a 10-K filing to see that's true. Instead, just ask a frequent flier with elite status whether it's gotten easier or harder to snag those complimentary upgrades on their trips. Flight occupancy has reached a record-high 80.3% this year, according to IATA.
Today, the planes are more full, and less profitable routes have been eliminated. The end result is bigger profits for airlines. And that's putting record industry revenue within reach for 2014.
Top Airline Companies To Watch For 2015: Singapore Airlines Ltd (SINGY)
Singapore Airlines Limited is a passenger air transportation company. The Company, together with its subsidiaries, is engaged in passenger and cargo air transportation, engineering services, training of pilots, air charters and tour wholesaling and related activities. The Company consists of 101 aircrafts. The Company operates in four segments: airline operations, cargo operations, engineering services and others. The Company's subsidiaries are SIA Engineering Company Limited (SIAEC), SIA Cargo and SilkAir (Singapore) Private Limited (SilkAir). Effective December 24, 2013, Singapore Airlines Ltd, a unit of Temasek Holdings (Pte) Ltd, raised its interest to 40.004% from 32.67% by acquiring a 7.334% interest in Tiger Airways Holdings Ltd from Dahlia Investments Ptye Ltd and Aranda Investments Pte Ltd. Advisors' Opinion:- [By Bruce Kennedy]
Business travel columnist Joe Brancatelli reports the world's longest non-stop commercial route, the Singapore Airlines (OTC: SINGY) 18-hour, business class-only flight between Newark, N.J. and Singapore, will end on Saturday. The airline also retired the world's second-longest non-stop flight, Los Angeles-to-Singapore, last month.
Top Airline Companies To Watch For 2015: China Eastern Airlines Corp Ltd (CEA)
China Eastern Airlines Corporation Limited (China Eastern), incorporated on April 14, 1985, is an air carriers operating in the People�� Republic of China. As of December 31, 2010, the Company served a route network that covers 182 domestic and foreign cities in 30 countries. It operates from Shanghai�� Hongqiao International Airport and Pudong International Airport. During the year ended December 31, 2010, its flights accounted for 52.2% and 37.9% of all the flight traffic at Hongqiao International Airport and Pudong International Airport, respectively. During 2010, it accounted for approximately 31.1% of the total passenger traffic volume and 19% of the total freight volume on routes to and from Shanghai. As of December 31, 2010, it had a fleet of 355 aircraft, including 337 passenger jets each with a seating capacity of over 100 seats and 18 freighters.
Passenger Operations
During 2010, the Company operated approximately 9,600 scheduled flights per week, excluding charter flights, serving a route network that covers 182 domestic and foreign cities in 30 countries. During 2010, its domestic routes generated approximately 71.5% of its passenger revenues. Its heavily traveled domestic routes link Shanghai to the commercial and business centers of the People�� Republic of China, such as Beijing, Guangzhou and Shenzhen. During 2010, it also operated approximately 361 flights per week to and from Hong Kong, originating from Shanghai and 16 major cities in eastern, northern and western the People�� Republic of China. During 2010, it operated approximately 103 flights per week between mainland China and Taiwan. During 2010, its regional routes accounted for approximately 5.4% of its passenger revenues. During 2010, it operated approximately 1,079 international flights per week, serving 60 cities in 29 countries, linking Shanghai to cities in Asian and Southeast Asian countries, such as Japan, Korea, India, Singapore, Thailand and Bangladesh and locations in Europe, the Un! ited States and Australia.
During 2010, the Company re-started its Shanghai to London and Shanghai to Moscow routes. During 2010, revenues derived from its operations on international routes accounted for approximately 23.2% of its passenger revenues. During 2010, revenues derived from its operations to and from Japan accounted for approximately 7.7% of its passenger revenues and approximately 33.4% of its international passenger revenues. Its international and regional flights and a portion of its domestic flights either originate or terminate in Shanghai, the central hub of its route network. Its operations in Shanghai are conducted at Hongqiao International Airport and Pudong International Airport. On March 16, 2010, it moved its operations at Hongqiao International Airport to the terminal two of Hongqiao International Airport. It operates its flights through three hubs located in eastern, northwestern and southwestern China, namely Shanghai, Xi��n and Kunming, respectively.
Cargo and Mail Operations
The Company�� cargo and mail business utilizes the same route network used by its passenger airline business. It carries cargo and mail on its freight aircraft, as well as in available cargo space on its passenger aircraft. Its cargo and mail routes are international routes. As of December 31, 2010, it had seven MD-11F, four B777F and two B757-200F freight aircraft under operating leases for cargo and mail operations. It also has three Airbus A300-600R aircraft, as well as two Boeing 747-400ER freighters for its cargo operations.
The Company competes with Air China Limited, China Southern Airlines Company Limited, Hong Kong Dragon Airlines Limited, Cathay Pacific Airways, Thai Airways International, Singapore Airlines, Delta Air Lines, United Airlines, American Airlines, Air Canada, Delta, Alitalia, Air France-KLM Group, Asiana Airlines, Korean Air, Virgin Atlantic Airways, British Airways, Lufthansa German Airlines, Aeroflot and Qantas Airways.
Advisors' Opinion:- [By Belinda Cao]
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.
Top Airline Companies To Watch For 2015: AMR Corp (AAMRQ)
AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.
American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.
To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.
American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.
The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.
Advisors' Opinion:- [By Adam Levine-Weinberg]
The Frontier sale has been delayed several times, although management has suggested that it may be resolved within a few weeks. The contest for new fixed-fee contracts has been a mixed bag: without signed labor agreements, Republic has trouble making competitive bids. Republic did win a big contract from AMR (NASDAQOTH: AAMRQ ) recently, but other major contracts have gone to top competitor SkyWest (NASDAQ: SKYW ) .
Top Airline Companies To Watch For 2015: WestJet Airlines Ltd (WJA)
WestJet Airlines Ltd. (WestJet) provides airline service and travel packages with scheduled service to more than 85 destinations in North America, Central America and the Caribbean, and has partnership agreements with over 30 airlines around the world. WestJet operates a fleet of more than 100 Boeing Next-Generation 737 and Bombardier Q400 NextGen aircraft. The Company�� subsidiaries include WestJet Investment Corp., WestJet Operations Corp., WestJet Vacations Inc. and WestJet Encore Ltd. Advisors' Opinion:- [By Gerrit De Vynck]
Closely held Porter unveiled plans in April to add as many as 30 CSeries jets in an order valued at as much as $2.1 billion from Montreal-based Bombardier to reach as far as Los Angeles and the Caribbean as it challenges the country�� two biggest carriers, Air Canada and WestJet Airlines Ltd. (WJA) The order, which would be Bombardier�� first for the aircraft with a Canadian carrier, is conditional on the runway extension and a removal of the jet ban.