Friday, May 31, 2013
Thursday, May 30, 2013
Northrop Spins Loss of Drone Contract
Following media reports that bungled relations with German regulators cost it a $1.3 billion defense contract, Northrop Grumman (NYSE: NOC ) fired back at its critics over the holiday weekend.
Last week, aviation news site Flightglobal reported that the German government has canceled plans to buy five Northrop "Euro Hawk" unmanned aerial vehicles. According to the site, "difficulties" were encountered with the aircraft's flight control system, yet Northrop refused to share technical data needed by German regulators that could have helped them to resolve the difficulties and certify the UAV for flight in civilian airspace over Germany. So despite having already invested some $722 million in the program already, Germany is pulling the plug and pulling out of a deal to buy four Euro Hawks in addition to the one that was undergoing testing.
For its part, Northrop issued a statement Monday declaring that it and its partner company EADS (NASDAQOTH: EADSY ) remain "committed" to the program, and averring: "[T]he full Euro Hawk system, including the mission control system and the sensor, has performed flawlessly and safely throughout the entire flight test program. Media reports that indicate there are challenges with the aircraft's flight control system, as well as excessive costs associated with completing airworthiness certification, are inaccurate."
Of course, none of this addresses reports that Northrop itself is refusing to share data needed to certify the plane for use over Germany. Multiple requests to the company to clarify its position in response to Germany's complaint on this point were met with no response.
Can Wells Fargo Keep the Big Banks Out of a Funk Today?
Having Warren Buffett at your back usually bodes well, as big banks Bank of America (NYSE: BAC ) and Wells Fargo (NYSE: WFC ) well know. Ever since the Oracle noted that his company, Berkshire Hathaway, (NYSE: BRK-A ) (NYSE: BRK-B ) has been buying up Wells Fargo stock, the bank's shares have been moving pretty nicely upward, as I noted in my article of one week ago.
Other Fools, namely John Maxfield, have mentioned the Warren effect as well -- particularly since the media trumpeted Buffett's acquisitions yesterday after eyeballing his company's 13-F filing.
Most banks sagged throughout the day
Yesterday, at least, Wells' good news wasn't enough to buoy financials for the entire day, and a generally upward trend in the big bank sector by midday was reversed as early gainers like B of A, JPMorgan Chase (NYSE: JPM ) , and Citigroup (NYSE: C ) dropped a bit before the market closed. Even Wells dipped a little, though only by 0.1%.
Today is looking like another good day for Buffett's favorite bank, and Wells is already up by about 0.4% at mid-morning. Indeed, the entire banking sector is lit up in bright green, as Citi, Bank of America, and JPMorgan all clock some impressive gains early this Friday morning.
Will a bit of negativity hurt Wells later in the day?
While Wells is looking very bubbly so far today, a couple of pieces of news came out yesterday that might put a damper on these gains later in the day.
Wells has been told by a judge that it must ante up and refund consumers $203 million for its part in the debit-card transaction scandal, which it has been fighting tooth and nail. While other banks like B of A, Citi, and JPMorgan have settled -- and Bank of America has even sent out some checks to customers affected by the practice -- Wells says it plans to appeal this judge's decision.
In another negative PR piece, an Orlando, Fla. man is claiming that Wells is improperly foreclosing on his home, despite his having made his mortgage payments timely. A representative of Wells Fargo said that the bank is on task to help this customer, but these types of news blurbs are never a good thing for any bank's image.
So far, however, there is no rain on Wells' horizon, and the stock has gained over 0.90% by 10 a.m. ET. With the whole financial sector looking bouncy still, it looks like a happy Friday for Wells Fargo and its peers.
While all this is very good news for big bank afficiandos, it really doesn't matter much how Wells Fargo's stock behaves today -- or on any given day, for that matter. As Foolish investors well know, a snapshot look at any given stock, taken in isolation, can be detrimental to the long-term view. The big picture, as always, is what really matters, and the normal ups and downs of the market are something that investors with their eyes on the prize take in stride, knowing that these hills and valleys are just part of the business of intelligent, long-term investing.
Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.
Wednesday, May 29, 2013
Why Plains All American Pipeline's Earnings May Not Be So Hot
Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.
Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.
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 Plains All American Pipeline (NYSE: PAA ) , whose recent revenue and earnings are plotted below.
Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.
Over the past 12 months, Plains All American Pipeline generated $558.0 million cash while it booked net income of $1,392.0 million. That means it turned 1.4% of its revenue into FCF. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.
All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).
For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.
So how does the cash flow at Plains All American Pipeline look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.
Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.
When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.
With 18.0% of operating cash flow coming from questionable sources, Plains All American Pipeline investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 5.9% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 70.7% of cash from operations.
A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.
Can your retirement portfolio provide you with enough income to last? You'll need more than Plains All American Pipeline. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.
Add Plains All American Pipeline to My Watchlist.Tuesday, May 28, 2013
Why Bank of America Might Lose at This Important Hearing
This is the week that the fate of a distinctly unsettled prior settlement between Bank of America (NYSE: BAC ) and 22 institutional investors gets put to the test in the courtroom of New York State Supreme Court Justice Barbara Kapnick. At issue is a New York law called Article 77, which will be used to answer the question of whether or not Bank of New York Mellon (NYSE: BNY ) , as trustee for the settlement, acted reasonably in accepting the terms on behalf of the complainants.
Certainly, the $8.5 billion settlement amount is big enough to worry about all on its own, but there is another issue here, and for Bank of America, it's huge: Does B of A have successor liability for the bad behavior of Countrywide?
Intertwined with the Article 77 matter
It's a valid question, and it is considered germane to whether BONY acted in a reasonable manner pursuant to the settlement. As BTIG's Mark Palmer has noted, the pact was based upon the notion that B of A did not have successor liability, so revisiting that particular point might throw the whole deal out the window, and cause B of A lots of anguish -- both now and in the future.
Of course, as Alison Frankel muses, Kapnick could take the path of least resistance and endorse the settlement. This would save both B of A and BONY a big hassle, and prevent everybody from having to go back to the starting gate.
But, it probably won't be that easy. The question of successor liability by B of A for Countrywide has come up before, in the recently settled battle between the bank and monoline insurer MBIA (NYSE: MBI ) . Earlier this year, the insurer filed with the New York courts a very long and colorful presentation in its bid to win summary judgment on this very issue. Despite its effort, however, New York State Supreme Court Justice Eileen Bransten wouldn't rule either for or against the question, citing disputed facts that needed more scrutiny. But, in a blow to Bank of America, she did decide that the successor liability issue should be heard in New York, rather than Delaware, which was B of A's preferred venue.
NY AG's case seems to favor a loss for B of A
Kapnick could still decide that there is no such liability on Bank of America's part toward Countrywide, but she would be going up against the Attorney General of New York, who last year filed suit against B of A for $1 billion in damages regarding substandard loans Countrywide sold Fannie Mae and Freddie Mac several years ago.
In the complaint filed in the so-called "Hustle" case, U.S. Attorney Preet Bharara outlines how the state of New York considers Bank of America to be liable for this shoddy behavior -- both as a direct participant, and as the successor to Countrywide. Preet alleges that the two entities engaged in a de facto merger, much as MBIA had -- at least, according to New York law. And, that's what counts at this point.
Will Kapnick approve the settlement without going into all these issues? In its motion to have the Hustle suit dismissed, B of A argued only that the AG's office hadn't proved fraud. For obvious reasons, the question of the bank's responsibility for Countrywide's abuses is one can of worms that B of A would rather not open.
Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges -- like the $8.5 billion settlement issue -- still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.
Monday, May 27, 2013
10 Best Paper Stocks To Own For 2014
Bloomfield, Conn.-based Kaman Corporation (NYSE: KAMN ) looks likely to land a sizable contract with the New Zealand Ministry of Defense, the company announced late Thursday.
According to Kaman, the NZ MoD has been authorized to sign a contract to purchase 10 of the company's SH-2G(I) Super Seasprite anti-submarine/anti-surface warfare helicopters, plus "spare parts, a full mission flight simulator, and related logistics support," for a total purchase price of $120 million. Pen's not been set to paper just yet, but Kaman expects to execute a sales contract for the whirlybirds sometime within "the next few weeks." Deliveries �would begin later this year, and be spaced out over the course of the next three years.
In a press release, Kaman advised that the NZ MoD has been flying Super Seasprites since 2001. The company says its helicopter "has the highest power-to-weight ratio of any maritime helicopter," and "is the largest, most powerful small ship helicopter in use today." In addition to the Kiwis, Super Seasprites are in use in the Polish Navy and Egyptian Air Force.
10 Best Paper Stocks To Own For 2014: CenturyLink Inc.(CTL)
CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.
Advisors' Opinion:- [By Paul]
CenturyLink (CTL), provides a range of communications services, including local and long distance voice, wholesale network access, high-speed Internet access, other data services, and video services in the continental United States. The company is a member of the elite dividend aristocrats index, and has raised dividends for 37 consecutive years. In comparison to the previous two telecom players, CenturyLink has been able to cover its distributions from EPS, although its payout ratio is a scary 92.70%. Yield: 7.20%.
10 Best Paper Stocks To Own For 2014: Cornerstone Progressive Return Fund(CFP)
Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.
Top 10 Performing Companies For 2014: Weyerhaeuser Company(WY)
Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.
10 Best Paper Stocks To Own For 2014: Graphic Packaging Holding Co (GPK)
Graphic Packaging Holding Company (GPHC), incorporated on June 21, 2007, is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. The Company is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The Company operates in two business segments: paperboard packaging and flexible packaging. The Company�� customers include beverage, food and other consumer products industries. The Company operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific. In December 2011, the Company combined its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft, LLC and Mid-America Packaging, LLC (collectively DNK), both wholly owned subsidiaries of Capital Five Investments, LLC (CVI). Under the terms of the transaction, the Company formed a company, Graphic Flexible Packaging, LLC (GFP), in which it owns 87% interest. On April 29, 2011, the Company acquired all of the assets of Sierra Pacific Packaging, Inc. (Sierra), a producer of folding cartons, beverage carriers and corrugated boxes for the consumer packaged goods industry. In January 2013, the Company acquired Contego Packaging Holdings, Ltd.
Paperboard Packaging
The Company supplies paperboard cartons and carriers. The Company provides a range of paperboard packaging solutions for various end-use markets, such as beverage, including beer, soft drinks, energy drinks, water and juices; food, including cereal, desserts, frozen, refrigerated and microwavable foods and pet foods; prepared foods, including snacks, quick-serve foods for restaurants and food service products, and household products, including dishwasher and laundry detergent, healthcare and beauty aids, and tissues and papers. The Company produces paperboard at its mills; prints, cuts and glues (converts) the paperboard into fol! ding cartons at its converting plants; and designs and manufactures packaging machines that package bottles and cans and, to a lesser extent, non-beverage consumer products. The Company also installs its packaging machines at customer plants and provides support, service and performance monitoring of the machines. The Company offers a variety of laminated, coated and printed packaging structures that are produced from its coated unbleached kraft (CUK), coated-recycled board (CRB), kraft paper and uncoated-recycled board (URB), as well as other grades of paperboard that are purchased from third-party suppliers. The Company manufactures corrugated medium and kraft paper for sale in the open market and internal use.
Flexible Packaging
The Company�� flexible packaging segment includes multi-wall bags, plastics, labels, and the Pine Bluff, AR mill. The Company is a supplier of flexible packaging in North America. Its products include multi-wall bags, shingle wrap, plastic bags and film for building materials (such as ready-mix concrete), retort pouches (such as meals ready to go), medical test kits, batch inclusion bags and film. Its end-markets include food and agriculture, building and industrial materials, chemicals, minerals, pet foods, and pharmaceutical products. Approximately 27% of the plastics produced are consumed internally. The Company�� label business focuses on heat transfer labels and lithographic labels. The Company operates label plants, which produce labels for food, beverage, pharmaceutical, automotive, household and industrial products, detergents, and the health and beauty markets.
The Company competes with MeadWestvaco Corporation and Klabin Company.
10 Best Paper Stocks To Own For 2014: Weatherford International Ltd(WFT)
Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include reciprocating rod lift systems, progressing cavity pumps, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead systems, and multiphase metering systems. The company also provides drilling services, including directional drilling, ?Secure Drilling? services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementing products, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and accessories. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and nat ural gas wells; and offers a selection of in-house or third-party manufactured equipment for the drilling, completion, and work over of oil and natural gas wells for operators and drilling contractors, as well as a line of completion tools and sand screens. Further, the company provides wireline and evaluation services; and re-entry, fishing, and thru-tubing services, as well as well abandonment and wellbore cleaning services; stimulation and chemicals, including fracturing and coiled tubing technologies, cement services, chemical systems, and drilling fluids; integrated drilling services; and pipeline and specialty services. It serves independent oil and natural gas producing companies. The company was founded in 1972 and is headquartered in Geneva, Switzerland.
Advisors' Opinion:- [By Tom Bishop]
Weatherford International (WFT) is trading around $14. Weatherford is a leading provider of equipment and services to the oil and gas industry, based in Switzerland. These shares have traded in a range betwe en $10.85 to $26.25 in the last 52 weeks. The 50-day moving average is $15.46 and the 200-day moving average is $19.62. WFT is estimated to earn about 88 cents per share in 2011 and $1.67 for 2012. Analysts at UBS set a $28 price target for WFT share.
Sunday, May 26, 2013
Top Freight Stocks To Watch Right Now
FreightCar America (NASDAQ: RAIL ) has found an internal candidate to be its new COO and president. The company named CFO Joseph McNeely to the position, effective immediately.
McNeely, who is to continue in his finance role until a successor is found, has been CFO of the company since 2010. Prior to that, he was vice president of sales and marketing at Mitsui Rail Capital. He also worked at railcar leasing firm GATX.
FreightCar America said that in his new position, McNeely will be responsible for "managing the day-to-day business operations and executing the Company's strategic plan."
Top Freight Stocks To Watch Right Now: International Game Technology (IGT)
International Game Technology (IGT) designs, manufactures, and markets electronic gaming equipment and systems worldwide. The company offers casino-style slot machines that determine the game play outcome at the machine; wide area progressive jackpot systems with linked machines across various casinos; central determination system machines connected to a central server that determines the game outcome, encompassing video lottery terminals used primarily in government-sponsored applications and electronic or video bingo machines; and amusement with prize games. Its systems products include applications for casino management, customer relationship marketing (CRM), and server-based games and player management. IGT?s casino management solutions comprise integrated modules for machine accounting, patron management, cage and table accounting, ticket-in/ticket-out, bonusing (jackpots and promotions), and table game automation. The company?s CRM solutions feature integrated market ing and business intelligence modules that provide analytical, predictive, and management tools for maximizing casino operational effectiveness; and server-based solutions enable game delivery to slot machines, computers, mobile phones, tablets, and other networked devices. Its gaming markets comprise the United States, Canada, Europe, the Middle East, Africa, Mexico and South/Central America, Asia, Australia, New Zealand, the Pacific, and the United Kingdom. The company was founded in 1980 and is headquartered in Reno, Nevada.
Top Freight Stocks To Watch Right Now: Tower Financial Corporation(TOFC)
Tower Financial Corporation operates as the holding company for Tower Bank & Trust that provides commercial and consumer banking services in the metropolitan areas of Fort Wayne, Allen County, and Warsaw, Indiana. It accepts various deposits, which include checking, savings, and money market accounts, as well as certificates of deposit and direct deposit services. The company?s loan portfolio comprises secured and unsecured commercial loans; commercial real estate loans; fixed rate, long-term residential mortgage loans, and construction loans; and personal loans and lines of credit to consumers for various purposes, such as the purchase of automobiles, boats, and other recreational vehicles, as well as to make home improvements and personal investments. In addition, it offers investment management and trust services, including estate planning and money management; traditional revocable trusts; irrevocable trusts; charitable trusts; estate administration; guardianship admi nistration; IRA administration; personal and institutional investment management; custodial services; and investment brokerage services. Further, the company provides securities and insurance brokerage services. It operates with six Allen County locations and one Warsaw location. The company was founded in 1998 and is headquartered in Fort Wayne, Indiana.
Top 5 Industrial Conglomerate Stocks To Invest In 2014: Celanese Corporation (CE)
Celanese Corporation, a technology and specialty materials company, engages in manufacture and sale of value-added chemicals, thermoplastic polymers, and other chemical-based products. It operates through four business segments: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates. The Advanced Engineered Materials segment offers specialty polymers for application in automotive, medical, and electronics products, as well as other consumer and industrial applications. The Consumer Specialties segment provides cellulose acetate flake, film, and tow that are primarily used in filter products applications; Sunett, a sweetener; and food protection ingredients, such as sorbates and sorbic acid for the food, beverage, and pharmaceutical industries. The Industrial Specialties segment produces emulsions and ethylene vinyl acetate (EVA) performance polymers. Its emulsions products are used in applications, such as paints and coatings, adhesives, construction, glass fiber, textiles, and paper; and EVA performance polymers are used in flexible packaging films, lamination film products, hot melt adhesives, medical products, automotive, carpeting and photovoltaic cells. The Acetyl Intermediates segment offers acetyl products, including acetic acid, vinyl acetate monomer, acetic anhydride, and acetate esters for use as starting materials for colorants, paints, adhesives, coatings, and medicines. It also provides organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. The company offers its products directly, as well as through distributors and electronic marketplaces in North America, Europe, Africa, the Asia-Pacific, and South America. Celanese Corporation was founded in 2004 and is headquartered in Dallas, Texas.
Top Freight Stocks To Watch Right Now: Peoples Bancorp of North Carolina Inc.(PEBK)
Peoples Bancorp of North Carolina, Inc. operates as the holding company for Peoples Bank, which provides various banking products and services to individuals and small to medium-sized businesses in Catawba Valley and surrounding communities in North Carolina. Its deposit products include demand deposits; interest-bearing checking accounts; NOW, MMDA, and savings deposits; regular savings accounts; money market accounts; time deposits; and certificates of deposit. The company?s lending portfolio comprises commercial loans, real estate mortgage loans, real estate construction loans, and consumer loans, as well as agricultural loans. It also provides real estate appraisal and real estate brokerage services, as well as access to investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services. It operates 22 banking offices located in Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Cla remont, Hiddenite, Hickory, Charlotte, Monroe, Cornelius, Mooresville, and Raleigh in North Carolina, as well as a loan production office in Denver, North Carolina. The company was founded in 1912 and is based in Newton, North Carolina.
Saturday, May 25, 2013
House to Take Up Student Loan Fix
WASHINGTON (AP) -- It's a better deal at first, but student loan rates could steadily climb and cost students more over the long haul under the plan House Republicans are considering.
Members of the Republican-led House Education and Workforce Committee planned on Thursday to finish up a bill that would keep interest rates from doubling on new subsidized Stafford loans on July 1. The GOP measure provides lower rates immediately and for the next few years, but the plan also comes with potentially higher costs for some students in coming years.
Democrats planned unified opposition.
"It's clear that the Republican student loan proposal will increase the cost of education for students and families," said Rep. George Miller of California, the senior Democrat on the committee. "Instead of adding billions in new debt onto borrowers, Congress should keep student loan interest rates affordable in the short term to ensure that a college degree remains within reach for students and families."
Without Congress' action, interest rates for new subsidized Stafford student loans would double from 3.4 percent to 6.8 percent on July 1. Neither party wants to see that happen, although there are strong differences in the methods to dodge that.
Under the proposal by the committee's chairman, Rep. John Kline, R-Minn., student loans would be reset every year and based on 10-year Treasury notes, plus an added percentage. For instance, students who receive subsidized or unsubsidized Stafford student loans would pay the Treasury rate, plus 2.5 percentage points.
Using Congressional Budget Office projections, that would translate to a 5 percent interest rate on Stafford loans in 2014 but climb to 7.7 percent for loans in 2023. Stafford loan rates would be capped at 8.5 percent, while loans for parents and graduate students would have a 10.5 percent ceiling under the GOP proposal.
In real dollars, the GOP plan would cost students and families heavily, according to the nonpartisan Congressional Research Service. The office used the CBO projections for Treasury notes' interest rates each year.
Students who max out their subsidized Stafford loans over four years would pay $8,331 in interest payments under the Republican bill, and $3,450 if rates were kept at 3.4 percent. If rates were allowed to double in July, that amount would be $7,284 over the typical 10-year window to repay the maximum $19,000.
For students who borrow the maximum subsidized and unsubsidized Stafford loans, they would pay $12,374 in interest under the Republican bill. The interest charges would be $10,867 if subsidized loans were allowed to double in July, or $7,033 if rates stay the same. The maximum available in subsidized and unsubsidized amounts is $27,000.
Graduate students and parents, meanwhile, would see interest payments reach $27,680 for four years of college under the GOP plan. If Congress keeps the rates the same, their interest payments would be $21,654 on the original maxed-out $40,000 loan, according to the Congressional Research Service report.
Democrats ahead of the hearing pledged to oppose Kline's plan and said they would offer amendments to the bill. They declined to provide further details before Kline gaveled the committee into its morning session. One idea that is popular among Democrats is to extend the 3.4 percent rate for subsidized Stafford loans for two years while leaders work on a long-term fix.
The White House, meanwhile, remained skeptical of the House measure.
"While we welcome action by the House on student loans, we have concerns about an approach that both fails to guarantee low rates for students on July 1 and asks too many of them to bear the burden of deficit reduction through unaffordable rates," White House spokesman Matt Lehrich said in a statement.
Obama's budget outline included flexible rates for student loans, pegging the interest to markets, but did not have a cap. Republicans had long pushed for the flexible rates and Kline said he would go along with Obama on that principle while adding a cap that Democrats sought.
During the 2010-11 academic year, about 7.5 million undergraduates borrowed from the subsidized Stafford loan program. In all, there were 36 million students loan borrowers through federal programs, according to the Education Department.
Friday, May 24, 2013
GM Keeps Gaining in China
Cadillac's big sedan, the XTS, made its Chinese debut with a lavish event in Guangzhou in February.The XTS posted good sales numbers in China in April. Photo credit: General Motors Co.
The success story continues: General Motors (NYSE: GM ) reported another month of strong sales gains in China, now its largest market.
GM said on Monday that its sales in China were up 15.3% in April versus the year-ago month, with sales of 261,870 vehicles. That was GM's best April ever in China – and for its Cadillac brand, its best month ever.
Buick and Chevy continue to do well
GM has been on a roll in China, even as China's overall auto market has been somewhat sluggish. GM is China's sales leader, with its success fueled by a mixture of familiar Chevys and Buicks – and a wildly popular line of small commercial vans sold under the Wuling brand.
Those little vans account for over half of GM's sales in China, but its more well-known (to Americans, anyway) global brands are growing more rapidly right now.
Somewhat surprisingly to Americans, it's Buick that leads the way in China. The brand is a longtime Chinese favorite, in part because the last Chinese emperor drove a Buick. And it's still growing: Buick's China sales were up 23.9% in April, paced by a strong result for the Excelle XT and GT models, which were up almost 54%. The two are close relatives of the U.S.-market Buick Verano.
Chevrolet sales in China were up 21.7% in April, led by the Cruze. The Cruze has rapidly become Chevy's sales leader in China – just as its American-market rival, Ford's (NYSE: F ) Focus, has become the Blue Oval's big seller in the country.
Cadillac growth shines as the brand gains momentum
But for GM investors, the big story has to be Cadillac. GM is mounting a multi-year global push to turn Cadillac into a true rival to the German luxury brands, and China figures very prominently in GM's plan. Cadillac got a very slow start in China, but GM is hoping to have 100,000 sales a year by 2015, and 10% of China's luxury market by 2020.
The brand's sales are small relative to its more mass-market peers – just 30,000 in China last year – but they're of outsized importance to GM: Cadillacs, like other luxury cars, have much higher profit margins than mainstream brands. That makes the brand especially important to GM CEO Dan Akerson's high-priority effort to improve GM's profitability.
Those efforts are already picking up steam in China, where the big XTS sedan just went into production. GM sold 1,802 of the big Cadillacs in April, and that plus the continued success of its SRX crossover pushed the brand to a 99% year-over-year gain for the month.
Investing for even bigger growth in years to come
GM and its joint venture partners sold 2.8 million vehicles in China last year. GM executives hope to push that to 3 million this year – and to 5 million a year by the end of 2015.
GM is spending big to make that happen – an $11 billion investment in a series of new factories and facilities. That investment will be funded with revenues from GM's current joint ventures in China.
If GM's strong sales growth in China continues, those new factories will pay for themselves sooner rather than later – and then some.
Is GM on a roll – or set for a fall?
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Carney: Criticism of IRS Response "Legitimate"
WASHINGTON (AP) -- President Barack Obama's spokesman says the White House is facing "legitimate criticisms" for its shifting accounts about who knew what about the Internal Revenue Service's targeting of conservative political groups, and when they knew it.
Press secretary Jay Carney's acknowledgement Wednesday was an attempt to stem a growing narrative that the White House has bungled its response to the IRS controversy, even though the White House appears to have had no direct role in the agency's targeting of conservative political groups.
"There have been some legitimate criticisms about how we're handling this," Carney told reporters during his daily briefing. "And I say 'legitimate' because I mean it."
The criticism of the White House has largely focused on its evolving story about who in the White House knew about the IRS targeting before it became public May 10. Carney on Wednesday attributed the changing accounts in part to an attempt by the White House to provide the public information quickly, even before the full details are known.
"Quickly and comprehensively are not objectives that always meet," he said. "Our approach is we get the information we have to you, and as we get more information, we fill in the details."
Since the IRS targeting of conservative groups became public, the White House's primary focus has been making clear that Obama had no advanced knowledge of the agency's actions or an independent audit of the activity. Carney and other White House advisors say the president learned about the targeting like the general public -- from news reports.
However, Carney has struggled to provide full accounts of who on the president's staff may have known about the politically explosive IRS activity before the president.
In his first account last week, Carney said White House Counsel Kathryn Ruemmler was told "very broadly" on April 24 about the inspector general's audit into the IRS office at the center of the targeting controversy.
But on Monday, Carney said staff in Ruemmler's office first learned of the impending IRS report on April 16. After Ruemmler was told, Carney said she then alerted White House chief of staff Denis McDonough, deputy chief of staff Mark Childress and other senior White House officials.
Carney continued Wednesday to withhold the names of those other staffers, saying he "can't account for every conversation that might have been had."
The shifting stories have created friction between Carney and reporters during his daily briefings. However, the press secretary took a softer tone Wednesday, calling reporters "smart" and "good at your jobs."
Of course, Carney may have had another reason for his sunnier disposition. Wednesday marked his 48th birthday.
"This is how I chose to spend it," he joked as he fielded questions from reporters.
Thursday, May 23, 2013
Why United Utilities, Booker, and BTG Should Beat the FTSE 100 Today
LONDON -- Disappointing economic news from China sent Japan's Nikkei index down 7% overnight and had a knock-on effect on the FTSE 100 (FTSEINDICES: ^FTSE ) this morning: The blue-chip index is down 1.8% to 6,719 points as of 8:15 a.m. EDT. News from the U.S. Federal Reserve that economic stimulus could be cut back in the coming months didn't help, either.
Plenty of company shares are falling today as well, but here are three from the various indexes that look set to hold up against the FTSE.
United Utilities
Final results from United Utilities sent the firm's share price up 1.2% this morning after the final dividend was raised 7.2% to 22.9 pence per share to take the total annual dividend to 34.3 pence per share. That's in keeping with policy and bang in line with expectations, and it represents a yield of 4.3% on the current share price.
The water company recorded an 8% rise in underlying pre-tax profit to £354.3 million, with underlying earnings per share up 11% to 39.1 pence. On those earnings, the shares are on a P/E of 20 today, with forecasts for 2014 dropping that to 18.
Booker (LSE: BOK )
Wholesaler Booker Group's shares have picked up a modest 0.2% to reach 130 pence this morning, taking the price up more than 75% over the past 12 months. Today's driver came in the form of full-year results, which saw sales up 3.5% to £4 billion, with like-for-like sales up 3.3%.
Pre-tax profit gained a substantial 13% to £101.4 million, and the firm was able to lift its final dividend by 15% to 2.25 pence, taking the total annual payment up a similar 15% to 2.63 pence per share for a yield of 2%. After the recent price appreciation, Booker's shares are on a forward P/E of 25 based on 2014 forecasts.
BTG (LSE: BTG )
Shares in specialist health care firm BTG remained flat this morning, but that should still be enough to beat a falling FTSE. The news today was of the acquisition of EKOS Corporation, a firm involved in interventional vascular treatment, for an initial payment of £120 million in cash -- there may be up to £27 million in additional cash depending on milestone targets.
Chief executive Louise Makin said: "EKOS is a fast-growing and profitable business, and the acquisition provides an exciting opportunity to build on our existing interventional medicine business and to enter an area with a significant addressable market opportunity."
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Wednesday, May 22, 2013
Top 5 Warren Buffett Companies To Invest In Right Now
On May 4, thousands of�Berkshire Hathaway� (NYSE: BRK-A ) (NYSE: BRK-B ) faithful will descend on Omaha for the company's annual shareholders' meeting.
They will be there to toss newspapers onto the porch of a Clayton Home. They will be there to try on Justin boots, buy GEICO insurance, eat at Gorat's steakhouse, wander the Nebraska Furniture Mart, and run in the Brooks "Invest in Yourself" 5k race. And, of course, they will be there to hear Warren Buffett and Charlie Munger -- two of the greatest investors of our time -- answer questions from shareholders and the media.
Since this is one of the most Foolish days on the calendar, the Fool will be sending a contingent to this "Woodstock for Capitalists" to fill in Foolish readers on everything (or, at least,�nearly�everything) that Warren and Charlie have to say.
Top 5 Warren Buffett Companies To Invest In Right Now: Smith Micro Software Inc.(SMSI)
Smith Micro Software, Inc. designs, develops, and markets software products and services primarily for the mobile computing and communications industries worldwide. The company operates in two segments, Wireless, and Productivity and Graphics segments. The Wireless segment develops mobile connectivity, mobile information management, and mobile security solutions, including QuickLink Mobile that provides mobile users to connect a notebook or other wireless device to wireless wide area networks (WWANs) and wireless local area networks (WLANs) or Wi-Fi hotspots; QuickLink Mobility suite, which allows connectivity for the user operating on WWANs, corporate local area networks (LANs), and Wi-Fi networks; and QuickLink Media for managing the media on the mobile devices. It also provides SendStuffNow, which secures cloud-based large file delivery solution; Device Management suite that provides intelligent, automated mobile device provisioning, and configuration; and push-to-talk, visual voicemail, and mobile video solutions. The Productivity and Graphics segment develops various software products for the consumer, prosumer, and professional markets. It provides StuffIt Deluxe, a lossless compression solution for documents and media; CheckIt Diagnostics and CheckIt Netbook suite, a diagnosis and troubleshooting solution for hardware and system problems; Poser, a solution for creating 3D character art and animations; Anime Studio, an animation tool for professional and digital artists; and Manga Studio, a solution for creating manga and comic art. This segment distributes its products through online stores, and third-party wholesalers, retailers, and value-added resellers. The company serves mobile network operators, original equipment manufacturers, device manufacturers, and enterprise businesses, as well as directly to consumers. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.
Top 5 Warren Buffett Companies To Invest In Right Now: Ariba Inc.(ARBA)
Ariba, Inc., together with its subsidiaries, provides collaborative business commerce solutions for buying and selling goods and services in the United States and internationally. The company combines software as a service technology to optimize the commerce lifecycle with the Web-based trading community that enable companies to discover, connect, and collaborate with a global network of trading partners, and enhance cash flow and operations in a cloud-based environment. Its solutions include spend visibility, sourcing, contract management, procurement, supplier information and performance, discovery, contract management for sales contracts, supplier sales and marketing programs, and network catalog, order, and invoice collaboration solutions. The company also offers invoice management, invoice conversion service, global invoicing and compliance, payment management, discount professional, and receivables financing solutions. In addition, it provides commerce services, incl uding best practice center, business commerce enablement, content and connectivity, customer support, education and change management, technology, and working capital services. It operates a scalable Internet infrastructure that connects buying organizations and suppliers enabling the exchange of product and service information, as well as a range of business documents, such as purchase orders and invoices. Ariba, Inc.?s network also supports B2B commerce needs, including e-procurement, e-invoicing, and working capital management. The company sells its solutions through direct sales organization. Ariba, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.
Top 10 Small Cap Stocks To Buy For 2014: Taiwan Greater China Fund(TFC)
Shelton Greater China Fund is a close ended equity mutual fund launched and managed by CCM Partners, LP. The fund is co-managed by Nikko Asset Management Co. Ltd. It primarily invests in public equity markets of Taiwan. The fund seeks to invest across diversified sectors. It benchmarks the performance of its portfolio against the Taiwan China Strategy Index, TAIEX, and MSCI Taiwan Index. The fund was formerly known as Taiwan Greater China Fund. Shelton Greater China Fund was formed in July 1988 and is domiciled in the United States.
Top 5 Warren Buffett Companies To Invest In Right Now: Chicago Rivet & Machine Co.(CVR)
Chicago Rivet & Machine Co. operates in the fastener industry in North America. It operates in two segments, Fasteners and Assembly Equipment. The Fasteners segment involves in the manufacture and sale of rivets, cold-formed fasteners and parts, and screw machine products. The Assembly Equipment segment engages in the manufacture of automatic rivet setting machines, automatic assembly equipment, and parts and tools. The company primarily sells its products to manufactures of automobiles and automotive components. Chicago Rivet & Machine Co. was founded in 1920 and is headquartered in Naperville, Illinois.
Top 5 Warren Buffett Companies To Invest In Right Now: AmeriServ Financial Inc.(ASRV)
AmeriServ Financial, Inc. operates as the bank holding company for AmeriServ Financial Bank that offers a range of consumer, mortgage, and commercial financial products and services. It offers retail banking services, such as demand deposits, savings accounts, time deposits, money market accounts, secured and unsecured loans, mortgage loans, safe deposit boxes, holiday club accounts, collection services, money orders, and traveler's checks; lending, depository, and related financial services, including real estate-mortgage loans, short and medium term loans, revolving credit arrangements, lines of credit, inventory and accounts receivable financing, real estate-construction loans, business savings accounts, certificates of deposit, wire transfers, night depository, and lock box services; and investment advisory services to commercial, industrial, financial, and governmental customers. AmeriServ Financial, through its other subsidiaries, provides personal trust products and services, such as personal portfolio investment management, estate planning and administration, custodial services, and pre-need trusts; and institutional trust products and services, including 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts, as well as offers union collective investment funds to invest union pension dollars in construction projects that utilize union labor. In addition, the company engages in underwriting as reinsurer of credit life and disability insurance. As of December 31, 2010, it operated 18 banking locations in 5 southwestern Pennsylvania counties, as well as 22 automated bank teller machines. AmeriServ Financial, Inc. was founded in 1982 and is headquartered in Johnstown, Pennsylvania.
Tuesday, May 21, 2013
Can Pandora Stand Up to Tech's Giants?
On Thursday, Pandora Media (NYSE: P ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise.
Pandora has carved out a valuable niche in the Internet radio space, having had substantial success by offering personalized music options both to paying subscribers and as a free service. But apart from the competitive pressure from satellite radio, Pandora also has to deal with big names in the technology industry trying to muscle in on its business model. Let's take an early look at what's been happening with Pandora over the past quarter and what we're likely to see in its report.
Stats on Pandora
| Analyst EPS Estimate | ($0.10) |
| Year-Ago EPS | ($0.09) |
| Revenue Estimate | $123.83 million |
| Change From Year-Ago Revenue | 53% |
| Earnings Beats in Past 4 Quarters | 4 |
Source: Yahoo! Finance.
Will Pandora keep in contact with earnings growth this quarter?
Analysts have gotten slightly more optimistic about Pandora's earnings prospects over the past few months, keeping their estimates for the just-ended quarter unchanged but reversing initial calls for a small loss in the current fiscal year to projections for a $0.01 per share profit. The stock has reflected that optimism, rising nearly 30% since mid-February.
Pandora has built up a huge audience of listeners, with over 70 million unique monthly users listening to more than 1.3 billion hours of content during April. Yet many of those listeners don't pay a dime for the service, and with high royalty costs hurting its profitability, in February Pandora implemented 40-hour-per-month limit on mobile users, charging $0.99 for those who want unlimited access.
But Pandora has faced increasing competition lately. Last month, Sirius XM Radio (NASDAQ: SIRI ) launched its MySXM service, offering subscribers who have online-access plans the ability to create customized radio stations based on 50 of its channels. Then just last week, Google (NASDAQ: GOOG ) introduced its Google All Access personalized radio service, although Google decided to skip over Pandora's key free-subscription audience by starting its service with a monthly rate of around $10.
Meanwhile, the elephant in the room is Apple (NASDAQ: AAPL ) , which has reportedly been moving ever-closer to creating its own streaming-music service. Given the power of Apple's iTunes, a streaming service based on the data it already has on those who use its ecosystem of music listening and purchasing could have huge competitive advantages over Pandora and its other rivals. Moreover, with Google having already entered the fray, the pressure will be on Apple to respond quickly.
In Pandora's quarterly report, the key piece of information is how well the company does in converting existing free customers into paid subscribers. Unless Pandora can accelerate that process going forward, it will struggle to keep its stronghold over the Internet-radio industry while retaining any chance of becoming profitable in the near future.
Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, but high royalty rates and competition from all corners threatens to silence the company. Learn more about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's new premium research report. All you have to do is click here now to subscribe to this invaluable investor's resource.
Click here to add Pandora to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
#pitch{ margin-bottom: 15px; }Monday, May 20, 2013
2 Fast-Growing Financial Stocks You Can Buy Today
In the current low-interest rate environment, many financial firms are struggling to grow top-line revenue -- this has not been the case at Discover Financial Services (NYSE: DFS ) and Capital One (NYSE: COF ) . Since the financial crisis, both companies have consistently grown revenue and outpaced the broader market.
Despite their recent successes, both companies appear to have long growth runways and may present investors with an opportunity to ride the growing trend from a cash-based global economy to electronic. In this video, Motley Fool financial analyst David Hanson discusses these two companies and why recent returns shouldn't deter investors from looking into these stocks.
The mobile revolution is still in its infancy, but with so many different companies it can be daunting to know how to profit in the space. Fortunately, The Motley Fool has released a free report on mobile named "The Next Trillion-Dollar Revolution" that tells you how. The report describes why this seismic shift will dwarf any other technology revolution seen before it, and also names the company at the forefront of the trend. You can access this report today by clicking here -- it's free.
Sunday, May 19, 2013
How Should You Be Playing AVX?
There's no foolproof way to know the future for AVX (NYSE: AVX ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.
A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company's current health and future prospects. It's an important step in separating the pretenders from the market's best stocks. Alone, AR -- the amount of money owed the company -- and DSO -- the number of days' worth of sales owed to the company -- don't tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.
Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)
Why might an upstanding firm like AVX do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors.
Is AVX sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:
Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.
The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I've plotted both above.
Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. AVX's latest average DSO stands at 48.6 days, and the end-of-quarter figure is 52.4 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let's get back to our original question: Based on DSO and sales, does AVX look like it might miss its numbers in the next quarter or two?
The numbers don't paint a clear picture. For the last fully reported fiscal quarter, AVX's year-over-year revenue shrank 0.7%, and its AR grew 0.8%. That looks OK. End-of-quarter DSO increased 0.4% over the prior-year quarter. It was up 7.6% versus the prior quarter. Still, I'm no fortuneteller, and these are just numbers. Investors putting their money on the line always need to dig into the filings for the root causes and draw their own conclusions.
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Add AVX to My Watchlist.Top 10 Healthcare Equipment Stocks To Invest In 2014
If Apple (NASDAQ: AAPL ) stock rallies after the company reports earnings on April 23, it'll be because of iPad sales. According to Fortune's survey of analyst projections, the median estimate is 18 million tablets sold, or about 56% more than last year's fiscal Q2 total of 11.8 million. Recent history and industry reports suggest that the iPad Mini could account for the majority of those sales.
Smaller tablets are gaining ground as a whole. Five of the nine most popular tablets listed at Amazon.com (NASDAQ: AMZN ) were 7 or 8 inches. The Mini ranked ninth, while Samsung's 10.1-inch Galaxy Tab ranked sixth. Various models of Amazon's Kindle occupied the other spots.
For its part, Wall Street is expecting fiscal Q2 revenue to increase 8.9% to $42.68 billion, resulting in $10.13 of profit per share. The company beat earnings estimates in only two of its past four quarters, highlighted by a 10.1% miss in the June quarter, according to data supplied by Yahoo! Finance. Apple stock is down 32% over that period.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Inspiration Mining Com Npv (ISM.TO)
Inspiration Mining Corporation, a junior mining company, engages in the acquisition, exploration, evaluation, and development of mineral resource properties in Canada and the United States. The company explores primarily for nickel, gold, copper, molybdenum, and rare earth elements. It holds interests in Langmuir Property that consists of 28 unpatented and 2 patented contiguous claims covering 1,130 hectares located southeast of Timmins, Ontario; and owns rights in Barton Syndicate Property, which includes 31 contiguous lode claims covering 246 hectares located southwest of Salt Lake City, Utah, in the United States. The company also owns Douglas Property consisting of 5 mining claims in the Douglas Township, Porcupine Mining Division, Ontario; Cleaver Property that comprises 13 mining claims located in the northeastern Cleaver Township, Ontario; and Desrosiers Property, which covers approximately 4,184 hectares in southwest of Timmins, Ontario. In addition, it has an undi vided 100% interest in certain mining claims located in Chibougamau in the Province of Quebec. Inspiration Mining Corporation is headquartered in Toronto, Canada.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Nuveen New York Investment Quality Municipal Fund Inc. (NQN)
Nuveen New York Investment Quality Municipal Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of New York. The fund invests in tax exempt municipal bonds. It employs fundamental analysis, with bottom-up stock picking approach, to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor�s New York Municipal Bond Index and Standard & Poor�s Insured National Municipal Bond Index. Nuveen New York Investment Quality Municipal Fund, Inc. was formed on September 21, 1990 and is domiciled in the United States.
Best Consumer Service Stocks To Watch For 2014: Liquidity Services Inc.(LQDT)
Liquidity Services, Inc. operates various online auction marketplaces for surplus and salvage assets in the United States. Its auction marketplaces include liquidation.com, which enables corporations and selected government agencies located in the United States to sell surplus and salvage consumer goods and capital assets; govliquidation.com that enables government agencies to sell surplus and scrap assets; govdeals.com, which enables local and state government entities, including city, county, and state agencies, as well as school boards and public utilities located in the United States to sell surplus and salvage assets. The company also operates secondipity.com that provides consumers a source of products and a socially conscious online experience through donating a portion of the proceeds of every sale to charity; and truckcenter.com, a marketplace for the sale of idle, surplus, and used fleet and transportation equipment. Its marketplaces provide professional buyers a ccess to supply of surplus and salvage assets presented with customer focused information, including digital images and other relevant product information along with services to complete the transaction; and enable corporate and government sellers to enhance their financial return on excess assets by providing liquid marketplaces and value-added services that integrate sales and marketing, logistics, and transaction settlement. The company offers approximately 500 products organized into various categories, including consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment, and specialty equipment. Liquidity Services, Inc. was founded in 1999 and is headquartered in Washington, District of Columbia.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Wincanton(WIN.L)
Wincanton plc, a contract logistics services company, designs, implements, and operates a range of supply chain management solutions primarily in the United Kingdom, Ireland, and Mainland Europe. It offers road, rail, containers, bulk tankers, and home delivery transport services; and warehousing services, including dedicated warehousing and storage solutions, flexible shared user warehousing solutions, duty suspended warehousing, returns management, fulfillment solutions, off-quay storage, and recycling solutions. The company also provides specialist supply chain services comprising change management, co-packing, consultancy, fleet management, international supply chain, production logistics, records management, retail store support, training solutions, vehicle maintenance, and 4PL. It serves retail, consumer goods, construction, defence, food service, energy, water, events, milk and bulk food, retail, and public sectors. The company was founded in 1925 and is headquarter ed in Chippenham, the United Kingdom.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Coca-Cola Bottling Co. Consolidated(COKE)
Coca-Cola Bottling Co. Consolidated, together with its subsidiaries, engages in the production, marketing, and distribution of nonalcoholic beverages, primarily products of The Coca-Cola Company. The company offers sparkling beverages, such as energy drinks; and still beverages, including bottled water, tea, ready-to-drink coffee, enhanced water, juices, and sports drinks. It holds cola beverage agreements and allied beverage agreements, under which it produces, distributes, and markets sparkling beverage products of The Coca-Cola Company in certain regions. The company also distributes and markets still beverages of The Coca-Cola Company, such as POWERade, vitaminwater, and Minute Maid Juices To Go, as well as produces, distributes, and markets Dasani water products under still beverage agreements. In addition, it holds agreements to produce and market Dr Pepper. Further, the company distributes and markets various other products, including Monster energy productsand Sund rop, as well as its own products, such as Country Breeze tea, diet Country Breeze tea, and Tum-E Yummies, a vitamin C enhanced flavored drink, Bean & Body, and Simmer and Bazza energy tea. Additionally, it produces beverages for other Coca-Cola bottlers; and provides restaurants and other immediate consumption outlets with fountain products. The company sells and distributes its products directly to retail stores and other outlets, including food markets, institutional accounts, and vending machine outlets. It operates in North Carolina, South Carolina, south Alabama, South Georgia, middle Tennessee, western Virginia, and West Virginia. The company was founded in 1902 and is based in Charlotte, North Carolina.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Wayne Savings Bancshares Inc.(WAYN)
Wayne Savings Bancshares, Inc. operates as the holding company for Wayne Savings Community Bank, a community-oriented institution that provides consumer and business financial services in northeast Ohio. It accepts various consumer and commercial deposits, which include checking accounts, savings accounts, money market accounts, term certificate of deposit accounts, commercial repurchase agreements, and individual retirement accounts. The company originates one-to four-family residential, multi-family residential, construction, non-residential real estate and land, commercial business, and consumer loans. It also invests in mortgage-backed securities issued or guaranteed by the United States government or agencies. The company offers its services to individuals, business, and other organizations through its main banking office located in Wooster, and other 10 additional full service branch offices in Wayne, Holmes, Ashland, Medina, and Stark counties, as well as the surrou nding localities in northeastern Ohio. Wayne Savings Bancshares, Inc. was founded in 1899 and is headquartered in Wooster, Ohio.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Provident Energy Ltd. (PVX)
Provident Energy Ltd. engages in the natural gas liquids (NGLs) infrastructure and marketing business in Canada and the United States. The company involves in the extraction, processing, storage, transportation, and marketing of NGLs, as well as offers these services to third party customers. It also provides fractionation, storage, NGL terminalling, loading, and offloading services. The company was founded in 1993 and is headquartered in Calgary, Canada.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Pace Micro Technology(PIC.L)
Pace plc engages in the design, development, and distribution of technologies and products for managed subscription television, telephony, and broadband services. Its products portfolio includes digital satellite set-top boxes, high definition personal video recorders, digital cable set-top boxes, gateway devices, and MPEG set-top boxes. The company also offers component and service management systems; and software-based conditional access and DRM products. In addition, it provides engineering design and software applications to its set-top box and gateway customers, as well as offers related support services, including solution delivery, customer care centers, and consulting. The company operates primarily in the United Kingdom, Europe, Latin America, and North America. Pace plc was founded in 1982 and is headquartered in Saltaire, the United Kingdom.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Lithium Americas Corp (LAC.TO)
Lithium Americas Corp. engages in the exploration and evaluation of lithium, potassium, and other mineral resources in South America. Its principal property includes the Cauchari‐Olaroz Lithium Project covering an area of approximately 82,500 hectares in adjacent Cauchari and Olaroz salt lakes located in Jujuy, Argentina. The company was incorporated in 2009 and is headquartered in Toronto, Canada.
Top 10 Healthcare Equipment Stocks To Invest In 2014: Mothercare(MTC.L)
Mothercare plc operates as a retailer and wholesaler of products and services for mothers, mothers-to-be, babies, and children. The company sells its products under the Mothercare and Early Learning Centre brands. It offers maternity and children?s clothing, furniture, and home furnishing products, as well pushchairs, nursery products, car and travel products, safety and care products, kids bedroom products, toys and gifts, clothing, feeding, and bathing and changing products. The company also operates retail franchises in Europe, the Middle East, Africa, and the Far East. Mothercare plc sells its products through retail stores, catalogues, and the Internet. As of November 14, 2011, it had 353 stores in the United Kingdom and 969 stores internationally. In addition, the company owns and operates Gurgle.com, the social networking site for parents. Mothercare plc was founded in 1961 and is based in Watford, the United Kingdom.
Saturday, May 18, 2013
Top Life Sciences Companies To Watch For 2014
Another week of new all-time highs for the Dow Jones Industrial Average coupled with a good start to earnings season has given optimists little reason to fret. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.
Keep in mind that some companies�deserve�their current valuations. Life sciences company Life Technologies�jumped to new highs this week following word that Thermo Fisher Scientific�will make a bid for the company, and that other private-equity firms are finalizing their bids.�With Life Technologies having publicly announced a strategic review in January, it seems like a long-awaited buyout could be right around the corner for shareholders.
Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
Top Life Sciences Companies To Watch For 2014: China Farm Equipment Limited (A8J.SI)
China Farm Equipment Limited, an investment holding company, engages in the design, development, production, and sale of farm equipment and diesel engines. Its products include combine harvesters, rotary plough machines and components, and soil tillages, as well as air cooling and water cooling diesel engines. The company offers combine harvesters and plough machines under the Dragon Boat brand name to farmers; and diesel engines under the Binhu and Dragon Boat brand names to the manufacturers of automobiles, plough machines, harvesters, grinders, water pumps, rice mills, road rollers, spiral propellers, and electric generators. China Farm Equipment Limited sells its products through distributors in the People�s Republic of China, as well as exports its products to Vietnam, Myanmar, Thailand, and Bangladesh. The company was incorporated in 2006 and is based in Miluo City, the People�s Republic of China. China Farm Equipment Limited is a subsidiary of China Longzhou Techn ologies Holdings Co., Ltd.
Top Life Sciences Companies To Watch For 2014: Noble Corp (NE)
Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (FPSO) located globally. As of December 31, 2011, its fleet consisted of 14 semisubmersibles, 14 drillships, 49 jackups and two submersibles. Its fleet includes 11 units under construction, which include five ultra-deepwater drillships, and six jackup rigs. As of February 15, 2012, approximately 84% of its fleet was located outside the United States in areas, which included Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During the year ended December 31, 2011, it completed construction on the Noble Bully I, a drillship, owned through a joint venture with a subsidiary of Royal Dutch Shell plc; completed construction on the Noble Bully II, a drillship, and it completed construction of Globetrotter-class drillship. As of February 15, 2012, it had 10 rigs under contract in Mexico with Pemex Exploracion y Produccion (Pemex).
During 2011, the Company conducted offshore contract drilling operations, which accounted for over 98% of its operating revenues. It conducts its contract drilling operations in the United States Gulf of Mexico, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and the Asian Pacific. During 2011, revenues from Shell and its affiliates accounted for approximately 24% of its total operating revenues. During 2011, revenues from Petroleo Brasileiro S.A. (Petrobras) accounted for approximately 18% and 19% of its total operating revenues. Revenues from Pemex accounted for approximately 15%, 20% and 23% of its total operating revenues.
Semisubmersibles
Semisubmersibles are floating platforms which, by means of a water ballasting system, can be submerged to a predetermined depth so that a substantial portion of the hull is b! elow the water surface during drilling operations. As of December 31, 2011, the semisubmersible fleet consisted of 14 units, including five Noble EVA-4000 semisubmersibles; three Friede & Goldman 9500 Enhanced Pacesetter semisubmersibles; two Pentagone 85 semisubmersibles; two Bingo 9000 design unit submersibles; one Aker H-3 Twin Hull S1289 Column semisubmersible, and one Offshore Co. SCP III Mark 2 semisubmersible.
Drillships
The Company�� drillships are self-propelled vessels. These units maintain their position over the well through the use of either a fixed mooring system or a computer controlled dynamic positioning system. Its drillships are capable of drilling in water depths from 1,000 to 12,000 feet. The maximum drilling depth of its drillships ranges from 20,000 feet to 40,000 feet. As of December 31, 2011, the drillship fleet consisted of 14 units, including four drillships under construction with Hyundai Heavy Industries Co. Ltd. (HHI); three Gusto Engineering Pelican Class drillships; two Bully-class drillships to be operated by it through a 50% joint venture with a subsidiary of Shell; one dynamically positioned Globetrotter-class drillship that left the shipyard during the fourth quarter of 2011; one Globetrotter-class drillship under construction; one moored Sonat Discoverer Class drillship capable of drilling in Arctic environments; one NAM Nedlloyd-C drillship, and one moored conversion class drillship.
Jackups
As of December 31, 2011, the Company had 49 jackups in its fleet, including six jackups under construction. The rig hull includes the drilling rig, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. All of its jackups are independent leg and cantilevered. Its jackups are capable of drilling to a maximum depth of 30,000 feet in water depths up to 400 feet.
Submersibles
The Company has two su! bmersible! s in the fleet, which are cold-stacked. Submersibles are mobile drilling platforms, which are towed to the drill site and submerged to drilling position by flooding the lower hull until it rests on the sea floor, with the upper deck above the water surface. Its submersibles are capable of drilling to a depth of 25,000 feet in water depths up to 70 feet.
Best Value Stocks To Buy Right Now: Hanmi Financial Corporation(HAFC)
Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides general business banking products and services in the United States. Its deposit product line comprises business and personal checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company?s loan portfolio includes real estate loans, such as commercial property, construction, and residential property loans; commercial and industrial loans comprising commercial term loans, commercial lines of credit, small business administration loans, and international trade finance; and consumer loans consisting of automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, overdraft protection loans, and unsecured lines of credit and credit cards. It also offers various insurance products, such as life, commercial, automobile, health, and property and casualty. The company serves the Korean-American community, as well as other communities in the multi-ethnic populations of Los Angeles County, Orange County, San Bernardino County, San Diego County, the San Francisco Bay area, and the Silicon Valley area in Santa Clara County. As of December 31, 2010, it operates a branch network of 27 full-service branch offices in California and one loan production office in Washington. Hanmi Financial Corporation was founded in 1981 and is headquartered in Los Angeles, California.
Top Life Sciences Companies To Watch For 2014: Portland General Electric Company (POR)
Portland General Electric Company operates as an integrated electric utility in Oregon. The company engages in the generation, purchase, transmission, distribution, and retail sale of electricity. Its generating portfolio consists of thermal, hydro, and wind resources. The company also sells electricity and natural gas in the wholesale market to utilities, brokers, and power marketers in the western United States and Canada. As of March 31, 2011, it served approximately 821,193 residential, commercial, and industrial customers. The company was founded in 1930 and is headquartered in Portland, Oregon.
Top Life Sciences Companies To Watch For 2014: Luxottica(LUX.MI)
Luxottica Group S.p.A., together with its subsidiaries, provides fashion, luxury, and sports eyewear worldwide. The company operates in two segments, Manufacturing and Wholesale Distribution, and Retail Distribution. The Manufacturing and Wholesale Distribution segment engages in the design, manufacture, wholesale distribution, and marketing of house brand and designer lines of prescription frames and sunglasses; sports eyewear products; and men?s and women?s apparel, footwear, and accessories. This segment offers its products under house brands, such as Ray-Ban, Oakley, Arnette, ESS, K&L, Luxottica, Mosley Tribes, Oliver Peoples, Persol, Revo, Sferoflex, and Vogue; and licensed brands comprising Anne Klein, Brooks Brothers, Bvlgari, Burberry, Chanel, Chaps, Club Monaco, D&G, Dolce & Gabbana, DKNY, Donna Karan, Miu Miu, Polo Ralph Lauren, Paul Smith, Prada, Ralph Lauren, Ralph, Salvatore Ferragamo, Stella McCartney, Tiffany & Co., Tory Burch, Versace, and Versus. This se gment serves retailers of mid- to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, and duty-free shops, as well as independent optometrists and ophthalmologists. The Retail Distribution segment operates optical retail stores under the brand names of LensCrafters, Pearle Vision, Sears Optical, Target Optical, OPSM, Laubman & Pank, Budget Eyewear, and GMO; and sunglass and luxury retail stores under the brand names of Sunglass Hut, ILORI, Optical Shop of Aspen, Oliver Peoples, David Clulow, Bright Eyes, and Oakley O' Stores and Vaults. This segment operates approximately 7,100 optical and sun retail stores. Luxottica Group also operates E-commerce Web sites, including sunglasshut.com, oakley.com, and ray-ban.com. The company was founded in 1961 and is headquartered in Milan, Italy. As of January 31, 2012, Luxottica Group S.p.A. operates as a subsidiary of Delfin S.�r.l.
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CAPScall of the Week: Heartland Express
For years, satirical late-night TV host Stephen Colbert has been running a series on his show called "Better Know a District," which highlights one of the 435 U.S. congressional districts and its representative. While I am no Stephen Colbert, I am brutally inquisitive when it comes to the 5,000-plus listed companies on the U.S. stock exchanges.
That's why I've made it a weekly tradition to examine one seldom-followed company within the Motley Fool CAPS database, and make a CAPScall of outperform or underperform on that company.
For this week's round of "Better Know a Stock," I'm going to take a closer look at Heartland Express (NASDAQ: HTLD ) .
What Heartland Express does
Heartland Express is a short-to-medium-haul truckload carrier of general commodities within the United States. It primarily is responsible for shipping automotive parts, retail goods, paper products, and packaged food.
In the company's most recently announced quarter in mid-April, it delivered relatively flat year-over-year revenue of $134.3 million but saw rising fuel prices creep higher yet again. That wasn't enough to constrain profits, however, as the company used cost-cutting measures to lower its operating ratio to 77.5% from 82.4% in the year-ago period -- a lower number is more favorable here. Management did note, though, that fuel prices have come in as the company's highest expense in six of the past eight quarters and cost-cutting would be its primary way of counteracting these rising costs in the immediate future.
Whom it competes against
As you might have correctly assumed, the trucking sector is quite a breeding ground of competition. Trucking demand isn't exactly booming right now, with payroll taxes moving up and the uncertainty surrounding the implementation of Obamacare starting to kick in. Therefore, Heartland Express has to contend with hungry competitors who are thus far bucking that trend and rising fuel costs.
Swift Transportation (NYSE: SWFT ) , for example, delivered a 4% increase in revenue this past quarter in spite of having fewer trucks in service. The company was able to realize better utilization of its existing fleet and actually saw fuel prices fall from the previous year. The results were even more robust for Knight Transportation (NYSE: KNX ) , whose shareholders saw revenue rise by 7% as the company grew from the year-ago quarter for the 14th straight time and delivered growth from each of its business segments.
Even the trucking companies that have been struggling are showing signs of life. Just last week, Arkansas Best (NASDAQ: ABFS ) announced a tentative agreement between its ABF Freight Systems subsidiary and the Teamsters union that should dramatically lower costs. Just days later, struggling trucker YRC Worldwide (NASDAQ: YRCW ) , which also reported its first quarterly profit in six years recently, confirmed that it's offered a preliminary proposal to acquire Arkansas Best.
This sector is growing and consolidating, and if Heartland Express isn't willing to adapt, it'll be left in the dust.
The call
After carefully reviewing the prospects for Heartland Express, I've decided to make a CAPScall of outperform on the company.
There are a couple of factors that make me particularly excited about Heartland Express' future. To begin with, the company operates one of the youngest fleets in the country. The average age of the company's tractors is just 2.1 years as the company took delivery of 485 new tractors during the quarter. In addition, it lopped a full year off the average age of its trailers in just the past year (4.1 years to 3.1 years). All around, these big investments are big cost-savers over the long run. Newer fleets offer better fuel efficiency, are more aerodynamic, and often need far fewer repairs than older fleets. This should put Heartland Express in great shape over the next couple of years in terms of lowering its expenses.
Next is the fact that Heartland Express has an immaculate balance sheet. Heartland ended last quarter with $127.5 million in cash and no debt. Now compare that with Swift Transportation, with nearly $1.5 billion in net debt, or YRC's $1.2 billion, and you can see that Heartland has significantly better flexibility than its peers and actually looks like a better buyout candidate than any trucking company in the sector.
Finally, Heartland Express has been extremely efficient at controlling its expenses. This first has to do with the fact that it has no interest expense to worry about as I just noted. The other half of that relates to a finely tuned management team that understands cost-cutting is a way of life in the trucking industry. Unless demand falls off a cliff, Heartland has all the tools in place to remain healthfully profitable.
A smart way to take advantage of rising fuel costs
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Enerplus Seeks Faster Growth
Tomorrow, Enerplus (NYSE: ERF ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.
Enerplus is just one of many ways to play the explosion in energy production activity across the North American continent. But legislative changes in Canada forced the former royalty trust to incorporate, losing a key tax advantage. That move plus more recent developments led to reduced earnings and dividends from the company. Let's take an early look at what's been happening with Enerplus over the past quarter and what we're likely to see in its quarterly report.
Stats on Enerplus
| Analyst EPS Estimate | $0.12 |
| Change From Year-Ago EPS | (81%) |
| Revenue Estimate | $379.4 million |
| Change From Year-Ago Revenue | 51% |
| Earnings Beats in Past 4 Quarters | 3 |
Source: Yahoo! Finance.
How can Enerplus grow faster?
Analysts have had mixed opinions in recent months about the prospects for Enerplus and its earnings. They've boosted their consensus for the 2013 year by $0.15 per share, but they've cut their 2014 estimates by a dime per share, suggesting much slower long-term growth. The shares, though, have reacted favorably, rising about 10% since early February.
Many investors haven't forgiven Enerplus for cutting its dividend in half last year. With the company facing a tough pricing environment, it made the hard decision to sell off assets in order to focus on its highest-potential plays in the Bakken and Three Forks formations. Moreover, Enerplus followed in the footsteps of Chesapeake Energy (NYSE: CHK ) by simply walking away from natural gas leases, due to a lack of capital to drill wells on the properties and the relatively low risk-reward potential at current prices. With boosts in well-completion efficiency and better cash flow margins despite weak prices, Enerplus has benefited from its shift away from dry gas toward oil and gas liquids to bolster overall profits.
Still, Enerplus faces several challenges. In the Bakken, EOG Resources (NYSE: EOG ) still has a huge cost advantage over Enerplus in terms of well costs, spending a third less on its Bakken wells than Enerplus. In addition, although Enbridge (NYSE: ENB ) and Plains All American (NYSE: PAA ) have helped increase the availability of rail transport to help get energy products out of the region, the additional costs involved still keep Enerplus from realizing the full value of its oil and gas.
In its quarterly report, Enerplus needs to reassure investors of its prospects in the Three Forks play. Although most investors are comfortable with the Bakken, companies have had mixed results from the Three Forks. Enerplus' progress there could be instrumental in maximizing the company's growth going forward.
Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.
Click here to add Enerplus to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.