The recent disappointing performance of the world economy has been labelled as the “new mediocre” by Christine Lagarde,the “new reality” byOlivier Blanchard and the “new normal” by many others.
How mediocre is global growth? The answer to this question heavily depends on the way we measure world GDP. Aggregating national GDPs can be done in two ways: using market exchange rates or using PPP (purchasing power parity). Because PPP puts larger weights on emerging markets and because these countries have shown faster growth rates in recent decades, the two measures have been diverging over time and now they offer a very different picture of the state of the world economy.
[Related -Bullish Sentiment Solidifies Even In The Face Of Lofty Valuations]
Below I plot world real GDP growth rates (smoothed by taking a 7-year centered average) measured at market exchange rates and PPP (both data are produced by the IMF).
10 Best Oil Service Stocks To Invest In 2016: Calumet Specialty Products Partners L.P.(CLMT)
Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in two segments, Specialty Products and Fuel Products. The Specialty Products segment processes crude oil and other feedstocks into various customized lubricating oils, white mineral oils, solvents, petrolatums, gelled hydrocarbons, cable fillers, natural petroleum sulfonates, waxes, and compressor lubricants. Its products are used in applications in a range of industries, such as industrial goods, including metal working fluids, belts, hoses, sealing systems, batteries, hot melt adhesives, pressure sensitive tapes, electrical transformers, refrigeration compressors, and drilling fluids; consumer goods, including candles, petroleum jelly, creams, tonics, lotions, coating on paper cups, chewing gum base, automotive aftermarket car-care products, lamp oils, charcoal lighter fluids, camping fuel, and various aerosol products; and automotive goods, such as motor oils, greases, transmission fluid, and tires. The Fuel Products segment processes crude oil into various fuel and fuel-related products, such as gasoline, diesel, jet fuel, and heavy fuel oils. This segment also offers fuel-related products, including fluid catalytic cracking feedstock, asphalt vacuum residuals, and mixed butanes. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P. The company was founded in 1916 and is headquartered in Indianapolis, Indiana.
- [By Lisa Levin]
In trading on Friday, energy shares tumbled by 1.25 percent. Meanwhile, top losers in the sector included Southwestern Energy Company (NYSE: SWN), down 16 percent, and Calumet Specialty Products Partners, L.P (NASDAQ: CLMT), down 14 percent.
10 Best Oil Service Stocks To Invest In 2016: MPLX LP(MPLX)
MPLX LP owns, operates, develops, and acquires pipelines and other midstream assets related to the transportation and storage of crude oil, refined product, and other hydrocarbon-based products in the United States. As of December 31, 2014, the company owned a 99.5% interest in an entity, which in turn collectively owned and operated a network of pipeline systems that include approximately 1,004 miles of common carrier crude oil pipelines; and approximately 1,902 miles of common carrier product pipelines in 9 states. It also holds a 100% interest in butane cavern located in Neal, West Virginia with approximately 1 million barrels of storage capacity. In addition, the company operates crude oil and product pipelines owned by third parties. MPLX GP LLC acts as the general partner of MPLX LP. The company was founded in 2012 and is headquartered in Findlay, Ohio. MPLX LP is a subsidiary of Marathon Petroleum Corporation.
- [By Ben Levisohn]
JPMorgan analyst Phil Gresh and team explain what they got wrong about Marathon Petroleum (MPC), as they cut its rating to Neutral from Overweight following yesterday’s disastrous financial results from MPLX (MPLX):
- [By Garrett Cook]
Lastly, Citi says Marathon Petroleum (NYSE: MPC) and MPLX LP (NYSE: MPLX) remain Buy rated the heels of benefits derived from strong product demand and the NGL recovery.
5 Best Computer Hardware Stocks To Own Right Now: Freeport-McMoran, Inc.(FCX)
Freeport-McMoRan Inc. (FCX), incorporated on November 10, 1987, is a natural resource company with a portfolio of mineral assets, and oil and natural gas resources. The Company’s segments include the Morenci, Cerro Verde, Grasberg and Tenke Fungurume copper mines, the Rod & Refining operations and the U.S. Oil & Gas Operations. FCX has organized its operations into five primary divisions: North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum mines. The Company’s portfolio of assets includes the Grasberg minerals district in Indonesia, mining operations in North and South America, the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC) in Africa, and oil and natural gas assets in the United States.
The Company’s Atlantic Copper unit in Spain smelts and refines copper concentrates, and markets refined copper and precious metals in slimes. The Company has a smelter at its Miami, Arizona, m ining operation; a cobalt chemical refinery in Kokkola, Finland; molybdenum conversion facilities in the United States and Europe; over four non-operating copper mines in North America (Ajo, Bisbee and Tohono in Arizona and Cobre in New Mexico), and other mining support entities.
North America Copper Mines
FCX has over seven operating copper mines in North America, including Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone and Chino in New Mexico. The North America copper mines include open-pit mining, sulfide ore concentrating, leaching and solution extraction/electrowinning (SX/EW) operations. The copper produced at the North America copper mines is cast into copper rods by its Rod & Refining operations. In addition to copper, the Company’s North America copper mines also produce molybdenum concentrates and silver. The Morenci open-pit mine, located in southeastern Arizona, produces copper cathodes and copper concentrate. In add ition to copper, the Morenci mine also produces molybdenum c! oncentrate.
South America Mining
South America mining includes over two operating copper mines: Cerro Verde in Peru and El Abra in Chile. These operations include open-pit mining, sulfide ore concentrating, leaching and SX/EW operations. The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathodes and copper concentrates. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver.
Indonesia mining includes PT Freeport Indonesia’s Grasberg minerals district. It produces copper concentrates, which contain quantities of gold and silver.
Africa mining includes the Tenke minerals district. The Tenke operation includes surface mining, leaching and SX/EW operations and produces copper cathode. In addition to copper, the Tenke operation produces cobalt hydroxide.
Molybde num mines include the Henderson underground mine and Climax open-pit mine in Colorado. The Henderson and Climax mines produce chemical-grade molybdenum concentrates, which are processed into molybdenum chemical products.
Rod & Refining
The Rod & Refining segment consists of copper conversion facilities located in North America, and includes a refinery, over three rod mills and a copper products facility. These operations process copper produced at its North America copper mines and purchased copper into copper cathode, rod and custom copper shapes. These operations also refine copper and produce copper rod and shapes for customers on a toll basis.
United States Oil and Gas Operations
Its U.S. Oil & Gas Operations include oil and natural gas assets in the Deepwater Gulf of Mexico (GOM), onshore and offshore California, the Haynesville shale in Louisiana, the Madden area in central Wyoming and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louis! iana.
- [By Lee Jackson]
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is a top diversified name to buy at Merrill Lynch and may offer investors the best total return play. The company by almost all metrics is undervalued, and it continues to raise its dividend yearly. Merrill Lynch has a $37 price target, and the consensus figure is $36.50. Investors are paid a very solid 4.0% dividend.
- [By Cameron Swinehart]
Going forward I will be looking to add investments on my watchlist and trim other positions. It will be interesting to see how an overweight commodity portfolio will perform relative to the rest of the market.
Cost Basis# SharesCurrent Price% of PortfolioCurrent ValueReturnMetal/Miners Sprott Physical Gold Trust (PHYS)$12.4985$11.043.75%$938.40-13.13%Sprott Physical Silver Trust (PSLV)$7.95125$8.744.37%$1,092.509.04%FreePort-McMoran (FCX)$31.6731$33.874.20%$1,049.976.50%Ishares MSCI Global Gold Miners ETF (RING)$13.0695$10.644.04%$1,010.80-22.74%Energy Statoil ASA(STO)$21.7940$22.683.63%$907.203.92%Vanguard Natural Resources LLC (VNR)$27.5636$27.874.01%$1,003.321.11%ConocoPhillips (COP)$63.6822.43$71.006.37%$1,592.5310.31%Agriculture CVR Partner LP (UAN)$26.3630.9$18.932.34%$584.94-39.25%Adecoagro$6.78125$7.443.72%$930.008.87%Archer-Daniels Midland (ADM)$34.80 30$37.244.47%$1,117.206.55%Mixed Commodity Powershares DB Commodity Index (DBC)$26.3540$25.954.15%$1,038.00-1.54%Sprott Resource Corp$3.34400$2.714.34%$1,084.00-23.25% Total % of portfolio49.40% Cost Basis12,666.00 Current Value12,348.86 Return-2.50% Source: Investing For The Future Surge In Commodity Prices
Disclosure: I am long ADM, FCX, UAN, AGRO, RING, VNR, SCPZF.PK, COP, DBC, PHYS, PSLV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More…)
10 Best Oil Service Stocks To Invest In 2016: Sphere 3D Corp.(ANY)
Sphere 3D Corp. provides virtualization technologies and data management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company enables organizations to deploy a combination of public, private, or hybrid cloud strategies through containerized applications, virtual desktops, virtual storage, and physical hyper-converged platforms. It provides G-Series Appliance and G-Series Cloud applications; virtual desktop management software for managing virtual desktop pools on its V3 hyper-converged appliances for virtualized desktop infrastructures; GuardianOS storage software for SnapServer enterprise-grade network attached storage systems; RAINcloud OS storage software for SnapScale clustered scale-out data storage solutions; Snap Enterprise Data Replicator, which provides multi-directional, WAN-optimized replication for SnapServer and SnapScale systems; and AccuGuard, a Windows-based backup and r ecovery data protection software. The company also offers RDX removable disk solutions, which use public cloud providers, including Microsoft and Amazon for data protection; SnapServer network attached storage solution, a platform for primary or nearline storage for integration with Windows, UNIX/Linux, and Macintosh environments; SnapScale clustered network attached storage solutions, which are clustered NAS solutions that enable organizations with rapid or unpredictable data growth to scale capacity and performance; and V3 hyper-converged platform, an appliance for high performance virtual desktop infrastructure. In addition, it offers NEO series tape-based backup and long-term archive solutions, including tape libraries, tape autoloaders, and stand-alone tape drives. The company sells its products through its distributor and reseller network to small and medium enterprises, small and medium businesses, and distributed enterprises. Sphere 3D Corp. was incorporated in 2007 and is headquartered in Mississauga, Canada.
- [By Monica Gerson]
Sphere 3D Corp. (NASDAQ: ANY) is estimated to post a quarterly loss at $0.11 per share on revenue of $22.10 million.
RXi Pharmaceuticals Corp (NASDAQ: RXII) is expected to post a quarterly loss at $0.05 per share.
10 Best Oil Service Stocks To Invest In 2016: Starz(STRZA)
Starz, through its subsidiaries, operates as a media and entertainment company. It operates through Starz Networks, Starz Distribution, and Starz Animation segments. The Starz Networks segment provides premium subscription video programming to U.S. multichannel video programming distributors (MVPDs), including cable operators, satellite television providers, and telecommunications companies. Its networks include Starz and Encore, which air film content, as well as original series and specials without advertisements; and MoviePlex that offers various art house, independent films, and classic movie library content. This segment also provides online access to the content that air on their linear networks through STARZ PLAY, ENCORE PLAY, and MOVIEPLEX PLAY. The Starz Distribution segment sells or rents DVDs under the ANCHOR BAY brand; and acquires and licenses various titles from third parties and also develops and produces certai n of its content. This segment also distributes content on pay-per-view, video-on-demand, subscription video-on-demand, electronic sell-through, and other digital formats to MVPDs, online/mobile distributors, game developers/publishers, and consumer electronics companies; and distributes movies, television series, documentaries, childrens programming, and other video content. The Starz Animation segment develops and produces two-dimensional animated content for various third party entertainment companies. Starz was incorporated in 2007 and is headquartered in Englewood, Colorado.
- [By Ben Levisohn]
Starz (STRZA) has jumped 14% to$32.16 after agreeing to be purchased by Lions Gate Entertainment (LGF) in a deal that values Starz at about $4.4 billion. Lions Gate has climbed 9.4% to $22.90.
10 Best Oil Service Stocks To Invest In 2016: Apollo Global Management, LLC(APO)
Apollo Global Management, LLC is a publicly owned investment manager. It primarily provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. The firm manages client focused portfolios. It launches and manages hedge funds and mutual funds for its clients. The firm also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its alternative investments include investment in private equity and real estate markets. The firm’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, turnaround, corporate restructuring, special situation, acquisition, and industry consolidation transactions. Its fixed income investments include income -oriented senior loan and bond, structured credit, opportunistic credit, non-performing loans and value oriented fixed income securities. The firm seeks to invest in chemicals; commodities; consumer and retail; oil and gas, metals, mining, agriculture, commodities, distribution and transportation; financial and business services; manufacturing and industrial; media distribution, cable, entertainment, and leisure; natural resources, energy, packaging and materials; and satellite and wireless. It seeks to invest in companies based in across North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. The firm employs a combination of contrarian, value, and distressed strategies to make its investments. It conducts an in-house research to create its investment portfolio. The firm seeks to acquire minority positions in its portfolio companies. The firm seeks to make investments in the range of $200 million and $1.5 billion. Apollo Global Management, ! LLC was founded in 1990 and is headquartered in New York, New York with additional offices in Los Angeles, California; Purchase, New York; Houston, Texas; London, United Kingdom; Frankfurt, Germany; Luxembourg, Luxembourg; Hong Kong, Hong Kong; Singapore, Singapore; and Mumbai, India.
- [By Chad Tracy]
In 2008, Apollo Global Management (NYSE: APO) co-founder Joshua Harris was on a losing streak.
The firm's $430 million investment in big-box retailer Linens N' Things went south when the company filed for bankruptcy.
- [By Lisa Levin]
The Fresh Market Inc (NASDAQ: TFM) agreed be acquired by Apollo Global Management LLC (NYSE: APO) for $28.50 per share in cash.
In an approximately $1.4 billion in cash buyout, shareholders are set to receive $28.50 per share. This calculates to an approximately 53 percent premium over the February 10 closing price and an approximately 24 percent premium over last Friday’s closing price.
10 Best Oil Service Stocks To Invest In 2016: Mitsubishi UFJ Financial Group Inc(MTU)
Mitsubishi UFJ Financial Group, Inc., through its subsidiaries, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers a range of banking products and services, including financial consulting services; deposit products, such as non-interest-bearing deposit accounts; asset management and administration services; trust products; and other investment products. This segment also provides annuity, single premium whole life, flat-rate premium whole life, medical, cancer, and nursing-care insurance products; testamentary trust services; housing loans; Internet banking services; and credit cards. The companys Corporate Banking Business Group segment offers loans and fund management, and remittance and foreign exchange services; derivatives, securitization, syndicated loans, and structured finance; investment banking services; and transaction and trust banking services. Its Trust As sets Business Group segment provides asset management and administration services for products, such as pension trusts and security trusts. This segment also offers a range of services to corporate and pension funds comprising pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. The companys Global Business Group segment provides services to large corporations, financial institutions, and sovereign and multinational organizations, including project finance, export credit agency, and financing through asset-backed commercial papers; and investment banking services, such as debt/equity issuance and M&A advisory services, as well as consumer finance, investment, asset management, and other financial products and services. Its Global Markets Business Group segment offers financing, hedging, and investing solutions to retail, corporate, institutional, and governmental clients; and asset and liability management servic es. The company was founded in 1880 and is based in Tokyo, J! apan.
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
The one currency that is running against the weak dollar tide is the Japanese yen. The yen initially climbed on the Fed’s no taper decision—rising to 97.75 on the news—but then fell all the way back to 99 yen to the dollar and finished yesterday at 99.42. (Remember that since the yen is quoted in yen to the dollar, a higher number is a sign of a weak yen and a smaller number means the yen is getting stronger.) The thinking seems to be that the recent Japanese trade deficit will push the Bank of Japan to further weaken the yen, in order to boost Japanese exports. I continue to think that the yen will finish 2013 at weaker levels than current trading, and that leads me to continue to hold positions in Japanese stocks such as Toyota Motor (TM) and Mitsubishi UFJ Financial Group (MTU). Both stocks are members of my Jubaks Picks portfolio.
10 Best Oil Service Stocks To Invest In 2016: Altisource Residential Corporation(RESI)
Altisource Residential Corporation, through its subsidiary, Altisource Residential, L.P., focuses on acquiring, owning, and managing single-family rental properties in the United States. It acquires its single-family rental properties primarily through the acquisition of sub-performing and non-performing loan portfolios. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, its net income would be exempt from federal taxation to the extent that it is distributed as dividends to shareholders. Altisource Residential Corporation was founded in 2012 and is based in Christiansted, Virgin Islands.
- [By Mark Holder]
Altisource Residential (NYSE: RESI ) (NYSE: RESI ) (NYSE: RESI ) purchases distressed mortgage loan portfolios with a strategy to work with borrowers to modify and refinance loans to either keep them in their homes or convert the unmodified loans into renovated rental properties.
10 Best Oil Service Stocks To Invest In 2016: Microchip Technology Incorporated(MCHP)
Microchip Technology Incorporated, together with its subsidiaries, develops, manufactures, and sells semiconductor products for various embedded control applications. It offers a family of microcontroller products that include 8-bit, 16-bit, and 32-bit PIC microcontrollers; and 16-bit dsPIC digital signal controllers, which feature on-board flash memory technology. The company also provides a set of application development tools that enable system designers to program a PIC microcontroller and dsPIC DSC for specific applications. In addition, it offers analog and interface products, which consist of various families with approximately 600 power management, linear, mixed-signal, thermal management, safety and security, and interface products. Further, the company provides memory products comprising serial electrically erasable programmable read-only memory. Its products are used in various applications in automotive, communications, computing, consumer, and industrial contr ol markets. Microchip Technology Incorporated markets its products primarily through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. The company was founded in 1989 and is based in Chandler, Arizona.
- [By Beth Piskora]
They are listed below:
Altera (ALTR)yielding 1.7%
Apple (AAPL)yielding 2.5%
Applied Materials (AMAT)yielding 2.6%
Cisco (CSCO)yielding 2.9%
EMC Corp. (EMC)yielding 1.5%
International Business Machines (IBM)yielding 2.0%
KLA-Tencor (KLAC)yielding 3.2%
Microchip Technology (MCHP)yielding 3.6%
Oracle (ORCL)yielding 1.5%
Qualcomm (QCOM)yielding 2.1%
Texas Instruments (TXN)yielding 2.9%
Xilinx (XLNX)yielding 2.3%
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10 Best Oil Service Stocks To Invest In 2016: NetApp Inc.(NTAP)
NetApp, Inc. engages in the design, manufacturing, marketing, and technical support of networked storage solutions. It supplies enterprise storage and data management software, and hardware products and services. The company offers Data ONTAP, an operating system that supports storage area network (SAN) and network-attached storage (NAS) environments; storage efficiency technologies, including FlexVol, FlexClone, and Deduplication technologies; storage management and application integration software, such as OnCommand management software; fabric-attached storage unified storage systems, which support a range of data for users on various platforms; and virtual storage tier; V-Series network-based virtualization solutions that provide SAN and NAS access to the data stored in heterogeneous storage arrays. It also provides data protection software products, including Snapshot, SnapRestore, SnapVault, and Open Systems SnapVault techologies; MetroCluster products; and SnapMirror data replication solution. In addition, the company offers data retention and archive products, and Flash Cache modules; and storage security products for data security and key management in IP SAN, NAS, and tape backup environments; StorageGRID that enables intelligent data management and secure content retention; and professional services, global support solutions, and customer education and training. It serves energy, financial services, government, high technology, Internet, life sciences and healthcare services, manufacturing, media, entertainment, animation and video postproduction, and telecommunications industries. It offers its products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company was formerly known as Network Appliance, Inc. and changed its name to NetApp, Inc. in March 2008. NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.
- [By Monica Gerson]
Analysts expect NetApp Inc. (NASDAQ: NTAP) to post its quarterly earnings at $0.58 per share on revenue of $1.40 billion. NetApp shares rose 0.36 percent to $25.30 in after-hours trading.
- [By Lee Jackson]
NetApp Inc. (NASDAQ: NTAP) is the only hardware stock to be a top pick. The company commands a 14.9% market share in terms of revenue in the total data storage market, and it derives around 60% of its total revenue from its network attached storage segment. The virtual storage market is a pot of gold valued at $10 billion currently, with NetApp being one of the known players in this market. Deutsche Bank has placed a $50 target on the stock. The consensus stands at $45. Investors are paid a 1.4% dividend.