The worst fears of the retail industry were realized as holiday retail sales fell below expectations. Research firm ShopperTrak reported that Thanksgiving and Black Friday only produced $12.3 billion dollars for the industry. That number was higher by only a tiny amount compared to 2012.
ShopperTrak reported:
With the allure of deep discounts, ��oor-buster��promotions and extended store hours, shoppers visited more stores and spent more money across the days of Thanksgiving Day and Black Friday (Nov. 28 and 29) than they did last year.
ShopperTrak, the leading provider of shopper analytics, estimates that, when compared to Thanksgiving and Black Friday last year, brick-and-mortar shopper traffic increased 2.8 percent, to more than 1.07 billion store visits. Retail sales also increased by 2.3 percent, as shoppers spent an estimated total of $12.3 billion across the two days.
To make matters worse, those deep discounts may have been so deep that margins were squeezed enough at some retailers so that a portion of the industry had no profits at all over the two days.
Top 10 US Stocks To Watch Right Now: IAC/InterActiveCorp (IACI)
IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company�s Search segment develops, markets, and distributes various downloadable toolbars; provides search, reference, and content services through its destination search and other Websites, including Ask.com and Dictionary.com; and aggregates and integrates local advertising and content for distribution to publishers on Web and mobile platforms, as well as markets and distributes mobile applications through which it provides search and additional services. Its Match segment offers subscription-based and advertiser-supported online personals services through its Websites comprising Match.com, Chemistry.com, OurTime.com, BlackPeopleMeet.com, and OkCupid.com, as well as through mobile applications and Meetic-branded Websites. The company�s ServiceMagic segment offers Market Match service that matches consumers with service professionals; Exact Match service, which enables con sumers to review service professional profiles and select the service professional that meets their specific needs; and 1800Contractor.com, an online directory of service professionals. This segment also offers Website design and hosting services. Its Media and Other segment operates CollegeHumor.com, an online entertainment Website that targets young males; Vimeo, a Website on which users can upload, share, and view video; and Pronto.com, a comparison search engine. This segment also engages in the creation of video content for various distribution platforms; and operates as an Internet retailer of footwear and related apparel and accessories, as well as focuses on multimedia business. The company was formerly known as InterActiveCorp and changed its name to IAC/InterActiveCorp in July 2004. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.
Advisors' Opinion:- [By WALLSTCHEATSHEET.COM]
IAC isn�� the most loved company on the street, which is evidenced by that 8.80 percent short position. However, IAC continues to deliver on the top and bottom lines. As long as that remains to be the case, IAC is an OUTPERFORM.
- [By Jake L'Ecuyer]
Equities Trading UP
IAC/InterActiveCorp (NASDAQ: IACI) shot up 15.54 percent to $69.43 after the company reported that that it is reorganizing and that Greg Blatt, its CEO, will become the Chairman of the newly created Match Group.
Top 10 US Stocks To Watch Right Now: Central Goldtrust (GTU)
Central GoldTrust (GoldTrust) is a passive, self-governing, single purpose, closed-end trust. GoldTrust is a gold holding trust created to buy and hold substantially all of its assets in long-term holdings of gold bullion. The primary objective of GoldTrust is to provide a exchange-tradeable alternative for investors interested in holding an investment in gold bullion. All gold bullion owned by GoldTrust must be stored in Canada in the treasury vault facilities of a tier 1 Canadian chartered bank on an allocated and segregated basis.
GoldTrust holds long-term holdings of pure, unencumbered gold bullion, in 400 troy ounce international bar sizes, and does not speculate with regard to short-term changes in gold prices. At least 95% of the total net assets of GoldTrust should be held in gold with at least 90% in physical bullion and up to 5% in gold certificate form. The property of GoldTrust, as at December 31, 2011, was consisted of 698,496 fine ounces of gold bullion and 6,156 fine ounces of gold in certificate form for a total of 704,652 fine ounces. GoldTrust is almost entirely invested in pure refined gold bullion in international bar form. As at December 31, 2011, GoldTrust�� assets were made up of 98.1% gold.
Advisors' Opinion:- [By Eric Parnell]
It also remains worthwhile to hedge stock allocations to protect against any major downside event along the way. This includes positions with low correlations such as the PIMCO Total Return ETF (BOND) or the PIMCO Global Advantage Inflation Linked Bond ETF (ILB). This also includes allocations that are likely to rally sharply in the event of a stock pullback but can also continue to rise along with the market such as long-term Treasuries (TLT) or Build America Bonds (BAB). And despite the recent thrashing they have endured, the precious metals complex including gold (GLD), silver (SLV), platinum (PPLT) and palladium (PALL) continue to provide attractive long-term portfolio diversification benefits. I remain long all of these metals via the Central GoldTrust (GTU), the Central Fund of America (CEF), the Sprott Physical Silver Trust (PSLV) and the Sprott Physical Platinum and Palladium Trust (SPPP).
Top 5 Low Price Companies To Watch In Right Now: PetSmart Inc(PETM)
PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. The company offers consumables, such as pet food, treats, and litter; and hardgoods, which include pet supplies and other goods comprising collars, leashes, health care supplies, grooming and beauty aids, toys, apparel, and pet beds and carriers, as well as aquariums and habitats, accessories, d�or, and filters for fish, birds, reptiles, and small pets. It also provides fresh-water fish, small birds, reptiles, and small pets; and pet services, such as grooming, including precision cuts, baths, nail trimming and grinding, and teeth brushing, as well as training, boarding, and day camp services. In addition, the company operates PetsHotels that offer boarding for dogs and cats; provides personalized pet care, an on-call veterinarian, temperature controlled rooms and suites, daily specialty treats and p lay time, and day camp services for dogs; and operates veterinary hospitals, which offer services comprising routine examinations and vaccinations, dental care, a pharmacy, and surgical procedures. As of January 29, 2012, it operated 1,232 retail stores; 192 PetsHotels; 791 veterinary hospitals under the trade name of Banfield, The Pet Hospital; and 8 hospitals operated through other third parties in Canada. The company also offers its products through an e-commerce and community site, PetSmart.com. PetSmart, Inc. was founded in 1986 and is based in Phoenix, Arizona.
Advisors' Opinion:- [By Rich Duprey]
There are a lot of moving parts for PetSmart (NASDAQ: PETM ) going into its annual shareholder meeting on Friday.
The pet food and supplies leader announced yesterday it has named a new non-executive chairman of the board,�Gregory P. Josefowicz, who will assume the role following the meeting. Exiting Chairman and CEO Bob Moran will not stand for reelection as a director, and company President and COO�David Lenhardt will fill the role of CEO.�Executive Vice President Joseph O'Leary will become president and COO. In May, the company named Carrie Teffner as its new chief financial officer.
- [By Ben Eisen]
Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) �, Nordstrom Inc. (JWN) �, PetsMart, Inc. (PETM) �, Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) �, Target Corp. (TGT) �, and Urban Outfitters, Inc. (URBN) .
- [By Mike Deane]
On Thursday, PetSmart (PETM) announced that it will be raising its dividend 18.2% and that it has authorized a $535 million stock repurchase plan.
The Phoenix, AZ-based company raised its quarterly dividend from 16.5 cents to 19.5 cents, which is an annualized payout of 78 cents. The dividend is payable on November 15 to all shareholders on record as of November 1. The ex-dividend date is October 30.
In addition to its dividend boost, PetSmart also announced a $535 million share buyback plan that will start on October 1, 2013 and expire on January 31, 2015.
PETM shares were up 56 cents, or .76%, at market close on Thursday. The company’s stock is up nearly 7% YTD.
- [By Rich Smith]
PetSmart (NASDAQ: PETM ) will soon have a new CFO to go with its new CEO and COO.
In January, the pet supplies superstore confirmed that David K. Lenhardt would become its new chief executive officer, and Joseph O'Leary would assume the chief operating officer's post. That was two down, one to go, and the company named the third member of its C-level triumvirate Monday: Carrie Teffner, who will become chief financial officer effective June 3.
Top 10 US Stocks To Watch Right Now: Nucor Corporation(NUE)
Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot and cold-rolled sheet steel; plate steel; structural steel comprising wide-flange beams, beam blanks, and sheet piling; and bar steel, such as blooms, billets, concrete reinforcing bar, merchant bar, and special bar quality products. The Steel Products segment offers steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, light gauge steel framing, steel grating and expanded metal, and wire and wire mesh products. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal products. The company?s operations also include various international trading companies that buy and sell steel and steel products. It sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. The company?s products are used by contractors in constructing highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings. Nucor Corporation was founded in 1940 and is based in Charlotte, North Carolina.
Advisors' Opinion:- [By Jayson Derrick]
Wells Fargo downgraded two steel stocks this morning due to increasing amounts of cheaper imports that have been flooding the market. U.S. Steel (NYSE: X) and Nucor (NYSE: NUE) were downgraded to a $17 to $21 range and a $50 to $55 range respectively. U.S. Steel lost 2.98 percent for the day closing at $26.34 while Nucor lost 2.05 percent, closing at $51.96.
- [By Rich Smith]
Nucor (NYSE: NUE ) earnings came out this morning, and the news was not good.
Sales for the fiscal second quarter dropped nearly 9%, to $4.7 billion. Earnings, at $0.27 per diluted share, were down 23%, due primarily to the reduction in revenues, and exacerbated by an increase in monies spent on marketing, administrative, and other expenses.
- [By Arjun Sreekumar]
Similarly, Nucor (NYSE: NUE ) , one of the largest U.S. steelmakers, is close to finishing up a new DRI plant in Louisiana that will be able to process roughly 2.5 million tons of DRI pellets a year. Given that Nucor has a production capacity of approximately 27 million tons, that 2.5 million ton increase would represent a 9% increase to the company's total capacity.
Top 10 US Stocks To Watch Right Now: Ultra Electronic Hdgs(ULE.L)
Ultra Electronics Holdings plc designs, develops, and manufactures electronic systems for the defense, security, transport, and energy markets worldwide. Its Aircraft and Vehicle Systems division offers airframe ice protection systems, active noise and vibration control, aircraft system electronics and test equipment, consultancy and training solutions, data bus network nodes, armored vehicle electronic systems, and software and systems. This division also provides airborne compressors, human/machine interface and vehicle control equipment, ID card printers, pneumatic sub-systems, remote weapon station control and portable oxygen generating equipment, rugged aircraft harness systems, sensors, and structural health monitoring systems. The company?s Information and Power Systems division offers airport information management systems, airport-wide systems integration, combat systems, command information management systems, enterprise IT solutions, IT consultancy, nuclear rea ctor control and instrumentation, data fusion and situational awareness systems, radar and electro-optic systems, surveillance and tracking systems, naval power conversion, gas turbine electric start and regeneration systems, signature measurement and control systems for naval vessels, and transit system power conversion and controls; and command, control, and information systems. Its Tactical and Sonar Systems division provides acoustic countermeasure systems, airborne anti-submarine warfare systems, underwater surveillance systems and acoustic countermeasures, airborne targeting pods, communications network interfacing equipment, data recording and analysis, cryptographic equipment, gunfire location systems, loitering munition systems, radio communication systems, sea mine disposal systems, sonar transducers and systems, submarine tactical communication systems, and torpedo defense systems; and video, voice, and data communication systems. The company is based in Greenford , the United Kingdom.
Top 10 US Stocks To Watch Right Now: Arotech Corporation(ARTX)
Arotech Corporation, together with its subsidiaries, provides defense and security products. It operates in three divisions: Training and Simulation, Battery and Power Systems, and Armor. The Training and Simulation division develops, manufactures, and markets multimedia and interactive digital solutions for use-of-force training and driving training of military, law enforcement, security, and other personnel; provides simulators, systems engineering, and software products to the United States military, government, and private industry; and offers specialized use of force training for police, security personnel, and the military. The Battery and Power Systems division manufactures and sells lithium and zinc-air batteries for defense and security products and other military applications; and develops and sells rechargeable and primary lithium batteries and smart chargers to the military and to private defense industry. This division also develops, manufactures, and markets primary zinc-air batteries, rechargeable batteries, and battery chargers for the military; and produces water-activated lifejacket lights for commercial aviation and marine applications. The Armor Division manufactures military and paramilitary armored vehicles, and employs sophisticated lightweight materials to produce aviation armor; and uses engineering concepts to produce combat armored military vehicles and up-armor civilian commercial vehicles. This division also uses lightweight armoring materials and advanced engineering processes to provide ballistic armor kits for rotary and fixed wing aircraft. Arotech sells its products primarily in the United States, Israel, Taiwan, Canada, England, Germany, Australia, China, Hong Kong, Mexico, India, Spain, Singapore, and Japan. The company was formerly known as Electric Fuel Corporation and changed its name to Arotech Corporation in September 2003. Arotech Corporation was founded in 1990 and is based in Ann Arbor, Michigan.
Advisors' Opinion:- [By Roberto Pedone]
One under-$10 stock that's quickly moving within range of triggering a major breakout trade is Arotech (ARTX), which is a defense and security products and services company, engaged in two business areas: interactive simulation for military, law enforcement and commercial markets; and batteries and charging systems for the military. This stock has been on fire so far in 2013, with shares up big by 98%.
If you take a look at the chart for Arotech, you'll notice that this stock is spiking sharply higher today right above its 50-day moving average of $1.84 a share with above-average volume. Volume so far in Thursday has registered over 430,000 shares, which is well above its three-month average action of 302,874 shares. This spike is quickly pushing shares of ARTX within range of triggering a major breakout trade.
Traders should now look for long-biased trades in ARTX if it manages to break out above some key overhead resistance levels at $2.35 to its 52-week high at $2.71 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 302,874 shares. If that breakout hits soon, then ARTX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4 to $5 a share.
Traders can look to buy ARTX off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $1.84 a share, or below more support at $1.63 a share. One can also buy ARTX off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Bryan Murphy]
The great part about trading is the same thing that can make it a miserable game to play... nothing lasts forever. If you can spot the points in time when the winds blowing a stock are about to change, you can make or save a fortune. If you miss those subtle clues, however, you can lose... big-time. Enter Arotech Corporation (NASDAQ:ARTX) and Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA). Both have been well-watched stocks of late, and for food reason - both are big movers, in one direction or the other. Now, however, both ARIA and ARTX� are poised to move in a new direction - opposite directions - and traders looking for a good opportunity may want to take a closer look at both [which is what you're about to do].
- [By Roberto Pedone]
One stock that's quickly moving within range of triggering a big breakout trade is Arotech (ARTX), which is a defense and security products and services company. This stock is off to a booming start in 2013, with shares up big by 82%.
If you take a look at the chart for Arotech, you'll notice that this stock has just started to trend back above its 50-day moving average of $1.86 a share with strong upside volume. Volume so far today has already registered over 600,000 shares, which is well above its three-month average action of 226,678 shares. This spike back above the 50-day is starting to push shares of ARTX within range of triggering a big breakout trade.
Traders should now look for long-biased trades in ARTX if it manages to break out above some near-term overhead resistance levels at $1.97 to $2.24 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 226,678 shares. If that breakout hits soon, then ARTX will set up to re-test or possibly take out its 52-week high at $2.71 a share. Any high-volume move above $2.71 will then give ARTX a chance to trend north of $3 a share.
Traders can look to buy ARTX off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.74 a share. One can also buy ARTX off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top 10 US Stocks To Watch Right Now: NYSE Euronext Inc.(NYX)
NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States; and five European-based exchanges that comprise Euronext N.V. ? the Paris, Amsterdam, Brussels, and Lisbon stock exchanges, as well as the NYSE Liffe derivatives markets in London, Paris, Amsterdam, Brussels, and Lisbon. The company?s Derivatives segment provides access to trade execution in derivatives products, options, and futures; offers clearing services for derivative products; and sells and distributes market data and related information. NYSE Euronext?s Cash Trading and Listings segment engages in offering access to trade execution in cash trading and settlement of transactions in European markets; obtaining new listings and servicing existing listings; selling and distributing market data and related information; and providing regulatory services. Its Info rmation Services and Technology Solutions segment operates sell side and buy side connectivity networks for its markets and for other market centers, and market participants in the United States, Europe, and Asia; provides trading and information technology software and solutions; sells and distributes market data and related information to data subscribers for proprietary data products; and offers asset management services, and consultancy services to exchanges and liquidity centers. The company is headquartered in New York, New York.
Advisors' Opinion:- [By Sam Mamudi]
As U.S. exchanges lose business to private venues, owners of public markets have sought help reversing the shift. NYSE Euronext (NYX) and Nasdaq OMX Group Inc. (NDAQ) have asked the SEC to consider rules keeping orders off dark pools unless those venues offer a better price than exchanges at a given moment.
- [By Alex Planes]
Merrill had been founded in 1914, so why did it wait decades to go public? The answer involves the New York Stock Exchange -- now part of NYSE Euronext (NYSE: NYX ) -- which underwent many rule changes during the '60s and '70s. A long-standing rule prohibiting NYSE member firms (typically broker-dealers) from operating as joint-stock corporations was loosened in 1970. Following this change, a number of member firms -- but not the majority -- wound up going public to take advantage of fresh capital.
- [By Sam Mamudi]
NYSE Euronext (NYX), the owner of the New York Stock Exchange, bought a minority stake in ACE Group Inc., which operates a platform for companies to sell stocks, bonds and other securities privately.
Top 10 US Stocks To Watch Right Now: Intel Corporation(INTC)
Intel Corporation engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also provides system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. In addition, it offers chipset products that send data between the microprocessor and input, display, and storage devices, including keyboard, mouse, monitor, hard drive, and CD, DVD, or Blu-ray drives; motherboards designed for desktop, server, and workstation platforms, and that has connectors for attaching devices to the bus; and wired and wireless connectivity products consisting of network adapters and embedded wireless cards used to translate and transmit data across networks. Further, the company provides NAND flash memory products primarily used in portable memory storage devices, digital camera memory cards, and solid-state drives; software products comprising operating systems, middleware, and tools used to develop, run, and manage various enterprise, consumer, embedded, and handheld devices; and software development tools that enable the creation of applications. Additionally, it develops computing platforms, which are integrated hardware and software computing technologies designed to offer an optimized solution. The company sells its products principally to original equipment manufacturers, original design manufacturers, PC components and other products users, and other manufacturers of industrial and communications equipment. It has a strategic alliance with Scientific Conservation Inc. Intel Corporation was founded in 1968 and is based in Santa Clara, California.
Advisors' Opinion:- [By Caroline Bennett]
Intel (NASDAQ: INTC ) has plans to collaborate with SoftKinetic, a software company that focuses on 3-D gesture recognition.
Through the terms of the agreement that SoftKinetic announced today, Intel will license SoftKinetic's iisu, a close-range gesture-tracking program, for inclusion within Intel's Perceptual Computing software development kit.
- [By Steve Heller]
In other to accomplish this feat, Facebook enlisted the help of Intel (NASDAQ: INTC ) for its silicon photonic technology, enabling transfer speeds of 100 gigabits per second, as well as a low enough latency for components to be spread out within the server rack. As a result, Facebook has been able to develop server designs that are 38% more efficient and 24% less expensive to build and operate than today's state-of-the-art servers. This approach not only allows for data center engineers to create custom modular server designs to exact specifications, but also maximizes the life cycle of components.
- [By Steve Heller]
Kill Windows RT
Windows RT has been a nightmare since the beginning. It has utterly confused consumers since there are inherent differences between the full version of Windows 8 and Windows RT. For one, Windows RT devices are powered by ARM Holdings (NASDAQ: ARMH ) designs, which to the consumer means that legacy Windows applications are not compatible. However, devices powered by ARM offer the promise of smaller form factors and improved battery life over Intel (NASDAQ: INTC ) -powered designs. - [By Travis Hoium]
Intel's (NASDAQ: INTC ) �stock has been all over the map in the past week, jumping when management introduced its new strategy and dropping when they released 2014 guidance. But did the stock really deserve the pummeling considering Intel's late charge into mobile?�
Top 10 US Stocks To Watch Right Now: Hokutou Holdings International Inc (HKTU)
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Top 10 US Stocks To Watch Right Now: Ashland Inc. (ASH)
Ashland Inc. operates as a specialty chemicals company in the United States and internationally. Its Ashland Aqualon Functional Ingredients segment produces cellulose ethers; and specialty additives and functional ingredients. Its products offer functionality, such as thickening and rheology control; water retention; adhesive strength; binding power; film formation; protective colloid, suspending, and emulsifying action; foam control; and pH stability. The company?s Ashland Hercules Water Technologies segment manufactures papermaking chemicals and supplies specialty chemicals. It offers sizing agents, wet/dry strength additives, and crepe and release additives for tissue manufacturing; and deposit control agents, defoamers, biocides, and other process additives. This segment also provides specialized chemicals and consulting services for the utility water treatment; and performance-based feed and control systems; and monitoring devices and remote system surveillance. Its A shland Performance Materials segment manufactures and supplies specialty chemicals and customized services to the building and construction, transportation, metal casting, packaging and converting, and marine markets. It also offers unsaturated polyester and vinyl ester resins, and gelcoats; adhesives and specialty resins; and metal casting consumables and design services. The company?s Ashland Consumer Markets segment produces and markets packaged automotive lubricants, chemicals, appearance products, antifreeze, and filters to the private passenger car, light truck, and heavy duty markets. It also operates a quick-lube franchise under the name of Valvoline Instant Oil Change. The company was founded in 1918 and is headquartered in Covington, Kentucky.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Ashland (NYSE: ASH ) , whose recent revenue and earnings are plotted below. - [By Seth Jayson]
Margins matter. The more Ashland (NYSE: ASH ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Ashland's competitive position could be.
- [By Victor Selva] ow such a promising comeback, and the drop in revenue during 2012 was anticipated by investor Jean-Marie Eveillard (Trades, Portfolio), who sold out his 3.9 million share position by the third quarter of that year.
Another industry giant, Huntsman Corporation (HUN) did show more promising results, and less volatile revenues during these last years. This, of course, has led to a high price to earnings ratio discouraging investors as we see later.
Geographically Diversified
On 2012, almost 50% of Eastman sales were generated in North America, while more than 25% were in Asia and 20% in Europe, Middle East and Africa. This diversification is to be taken into account since it guarantees long-term revenue, even if cigarette consumption decreases in some specific region (for instance, American sales declined �in recent years), which would stabilize acetate tow demands worldwide.
Industrial Background and Gurus��Preference
Eastman�� earnings per share growth was significantly higher than industry median (46.9% vs. 5.2%) but so was Huntsman��, at 46.5%. The critical difference between these two industry giants stands out by looking at their price to earnings: Eastman�� is below median (16.4 vs. 19.1) while Huntsman rose up to 130.1, thus entailing a significant price premium relative to industry peers��average.
Although Ashland does have an inferior price to earnings ratio than Eastman�� (11.5), there�� a significant difference in their earnings per share growth: 27%, probably caused by a decline in revenue.
This might have been one of the reasons that motivated investors David Dreman (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) to significantly reduce their stake in Huntsman (both of them by more than 80% margin). In contrast, Leon Cooperman (Trades, Portfolio) and Scott Black (Trades, Portfolio), reinforced their positions in Eastman. Most notably, Ray Dalio (Trades, Portfolio)
- [By Shauna O'Brien]
Jefferies reported on Thursday that it has cut its rating on chemical company Ashland Inc. (ASH).
The firm has downgraded ASH from “Buy” to “Hold,” and has lowered the company’s price target from $104 to $97. This price target suggests a 9% upside from the stock’s current price of $88.47.
Analyst Laurence Alexander commented: “Investor confidence in the asset shuffling thesis may not withstand 2-3 more rounds of downward revisions to EPS and FCF forecasts for 2014E-2016E.”
“Pension headwinds, incentive comp, Valvoline marketing expenses, sluggish end markets: in our view, it all adds up, and makes further multiple expansion more difficult.”
Looking ahead, the firm has reduced estimates for the fourth quarter from $1.70 to $1.59 per share. For FY2013, earnings estimates have been lowered from $6.25 to $6.15 per share. FY2014 estimates have been cut from $7.45 to $6.75 per share.
Ashland shares were mostly flat during pre-market trading Thursday. The stock is up 10% YTD
Top 10 US Stocks To Watch Right Now: DTE Energy Company(DTE)
DTE Energy Company, together with its subsidiaries, operates as an electric and natural gas utility company in Michigan. It also involves in non-utility operations. The company?s Energy Utility segment engages in the generation, purchase, distribution, and sale of electricity in southeastern Michigan. It generates electricity from various fuels, including coal, as well as from nuclear and hydro facilitates. As of December 31, 2010, this segment owned and operated approximately 674 distribution substations and approximately 412,100 line transformers; and supplied electricity to 2.1 million residential, commercial, and industrial customers in southeastern Michigan. The company?s Gas Utility segment engages in the purchase, storage, transmission, distribution, and sale of natural gas in Michigan. As of December 31, 2010, this segment?s distribution system included approximately 19,000 miles of distribution mains, 1,036,000 service lines, and 1,319,000 active meters. It also o wned approximately 2,000 miles of transmission lines that deliver natural gas; and supplied natural gas to approximately 1.2 million residential, commercial, and industrial customers throughout Michigan, as well as to approximately 17,000 customers in Adrian, Michigan. The company?s non-utility operations include natural gas pipelines and storage; unconventional gas exploration, development, and production; power and industrial projects, and coal transportation and marketing; and energy marketing and trading operations. Its customers include electric utilities, merchant power producers, integrated steel mills, and industrial companies. DTE Energy Company was founded in 1995 and is based in Detroit, Michigan.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on DTE Energy (NYSE: DTE ) , whose recent revenue and earnings are plotted below. - [By John Udovich]
Small cap Plug Power Inc was formed in 1997 as a joint venture between Michigan utility owner DTE Energy Co (NYSE: DTE) and Mechanical Technology Inc (OTCMKTS: MKTY) to develop fuel-cell systems to power homes and small businesses. Plug Power Inc says it has�revolutionized the material handling industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints as�it manufactures a full suite of products designed to fit seamlessly into the existing battery compartment of all major OEM material handling equipment. In addition, the company says its GenDrive fuel cell is a superior alternative to lead-acid batteries for electric lift trucks in the $20 billion�global material handling market.
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