Among the companies with shares expected to actively trade in Tuesday’s session are Applied Materials Inc.(AMAT), Red Hat Inc.(RHT) and National Oilwell Varco Inc.(NOV)
Applied Materials agreed to acquire Tokyo Electron Ltd.(8035.TO) in a deal valuing the Japanese semiconductor production equipment maker at $9.3 billion, creating a giant in the chip and display manufacturing tools sector. Applied Materials jumped 6.2% to $16.98 premarket.
Red Hat’s fiscal second-quarter profit rose 17% as the software company posted continued subscription-revenue growth as well as steady margins. Shares of the open-source software provider, however, were down 10% at $47.40 premarket as JPMorgan noted billings declined meaningfully from a year earlier and Oppenheimer said the latest period marked the sixth straight quarter that expense growth outpaced billings.
Best Cheapest Stocks To Own Right Now: Valassis Communications Inc.(VCI)
Valassis Communications, Inc., together with its subsidiaries, operates as a media and marketing services company primarily in the United States and Europe. Its Shared Mail segment combines the individual print advertisements of various clients into a single shared mail package and distributes the shared mail advertising products to approximately 70 million U.S. households primarily on a weekly basis through the United States Postal Service (USPS). This segment also offers solo mail and other products and services, including list procurement, addressing, processing, and the distribution of brochures and circulars; ancillary services, such as list rentals; and direct mail advertising solutions for local neighborhood businesses. It primarily serves grocers, restaurants, drug stores, discount and department stores, home furnishing stores, and other retailers. The company?s Neighborhood Targeted segment is involved in the print and media placement of traditional free-standing solo insert formats and specialty print promotion products; offers newspaper-delivered or direct-to-door sampling products that give manufacturers the ability to cover approximately 60 million households; and helps clients to run their promotional advertising directly on the pages of newspapers by brokering advertising space. The company?s Free-standing Inserts segment prints and distributes four-color booklets containing promotions, primarily coupons from multiple clients through newspapers and shared mails. Its International, Digital Media, and Services segment provides coupon clearing, analytical promotion information management products, and marketing services for retailers and consumer-packaged goods manufacturers; and promotion security and consulting services, as well as produces direct-mail programs based on multiple data sources, including frequent shopper card data. Valassis Communications, Inc. was founded in 1970 and is headquartered in Livonia, Michigan.
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Wednesday’s session are Valassis Communications Inc.(VCI) and Gogo Inc.(GOGO)
Valassis agreed to be acquired by Harland Clarke Holdings Corp. in a deal valuing the coupon publisher at roughly $1.31 billion that the companies expect will create a leading diversified payment and marketing-services company. Shares surged 21% to $34.29 premarket.
- [By Jake L’Ecuyer]
Equities Trading UP
Valassis Communications (NYSE: VCI) shot up 22.16 percent to $34.57 after the company agreed to be acquired by Harland Clarke Holdings Corp for $34.04 per share in cash.
- [By Alex Planes]
What: Shares of Valassis Communications (NYSE: VCI ) crashed by nearly 15% this morning but have since clawed their way back to a loss of about 8%, on a double whiff on first-quarter earnings and an underwhelming set of forward guidance.
Best Cheapest Stocks To Own Right Now: Express Inc. (EXPR)
Express, Inc. operates specialty retail stores in the United States. The company?s stores offer apparel and accessories for women and men between 20 and 30 years old across various aspects of the lifestyles comprising work, casual, jeanswear, and going-out occasions. It also sells gift cards. As of January 29, 2011, the company operated 591 stores, including 547 dual-gender stores, 25 women?s stores, and 19 men?s stores located primarily in high-traffic shopping malls, lifestyle centers, and street locations in 47 states throughout the United States, the District of Columbia, and Puerto Rico. In addition, it operates seven Express stores in Saudi Arabia, Kuwait, and the United Arab Emirates through its Development Agreement with Alshaya Trading Co.; and sells its products through e-commerce Website, express.com. The company was formerly known as Express Parent LLC and changed its name to Express, Inc. in May 2010. Express, Inc. was founded in 1980 and is headquartered in C olumbus, Ohio.
- [By Laura Brodbeck]
Notable earnings released on Wednesday included:
Williams-Sonoma, Inc (NYSE: WSM) reported fourth quarter EPS of $1.38 on revenue of $1.47 billion, compared to last year’s EPS of $1.34 on revenue of $1.41 billion. Express, Inc (NYSE: EXPR) reported fourth quarter EPS of $0.57 on revenue of $715.90 million, compared to last year’s EPS of $0.75 on revenue of $728.71 million. Vail Resorts, Inc. (NYSE: MTN) reported second quarter EPS of $1.60 on revenue of $452.70 million, compared to last year’s EPS of $1.65 on revenue of $422.45 million. Krispy Kreme Doughnuts, Inc. (NYSE: KKD) reported fourth quarter EPS of $0.12 on revenue of $112.70 million, compared to last year’s EPS of $0.09 on revenue of $118.14 million.
- [By Ben Levisohn]
Shares of Express (EXPR) have been going at fire-sale prices today after the company missed earnings forecasts.
Agence France-Presse/Getty Images
Express reported a profit of 57 cents a share, at the bottom end of its forecast and below analyst estimates for 59 cents. It also lowered its full-year guidance to a range of $1.03 to $1.23, below forecasts for $1.58.
Stifel’s Richard Jaffe and team cut their rating on Express to Hold from Buy. They explain why:
Previously we believed [Express’s] weakness was driven solely by external pressures (severe weather, weak traffic and a promotional environment). However, we now believe part of [Express’s] weakness is self-inflicted merchandise misses, which will take time to correct. Given this and our cautious outlook for the company, we are downgrading the shares to Hold…
Severe weather, weak traffic trends and a highly promotional retail environment have continued into 1Q, likely putting pressure on earnings and share prices for many companies in our sector. Retailers that have not yet reported 4Q earnings and therefore have not yet commented on 1Q trends are at risk, in our view. Given the exceptionally promotional and price competitive environment, we believe that estimates for some companies ([Aeropostale (ARO), Ann (ANN), Gordmans Stores (GMAN) and Tilly’s (TLYS)]) do not reflect the pricing pressure likely in 1Q.
Shares of Express have plunged 13% to $15.96 at 3:51 p.m., while Aeropostale has gained 1.5% to $7.26, Ann has dropped 3.3% to $34.90, Gordmans Stores has risen 0.5% to $6.34 and Tilly’s have fallen 2.5% to $11.35.
- [By Laura Brodbeck]
Notable earnings releases expected on Wednesday include:
Williams-Sonoma, Inc (NYSE: WSM) is expected to report fourth quarter EPS of $1.36 on revenue of $1.43 billion, compared to last year’s EPS of $1.34 on revenue of $1.41 billion. Express, Inc (NYSE: EXPR) is expected to report fourth quarter EPS of $0.59 on revenue of $722.02 million, compared to last year’s EPS of $0.75 on revenue of $728.71 million. Vail Resorts, Inc. (NYSE: MTN) is expected to report second quarter EPS of $1.87 on revenue of $471.16 million, compared to last year’s EPS of $1.65 on revenue of $422.45 million. Krispy Kreme Doughnuts, Inc. (NYSE: KKD) is expected to report fourth quarter EPS of $0.13 on revenue of $119.59 million, compared to last year’s EPS of $0.09 on revenue of $118.14 million.
Best Cheapest Stocks To Own Right Now: HHGregg Inc.(HGG)
hhgregg, Inc. operates as a specialty retailer of consumer electronics, home appliances, and related services. The company offers video products, such as flat panel televisions, blu-rays, and DVD players; appliances, including washers and dryers, refrigerators, cooking ranges, dishwashers, freezers, and air conditioners; and digital camcorders, digital cameras, gaming bundles, home theater receivers, mattresses, MP3 players, computers, personal navigation, tablets, speaker systems, and telephones. It also sells a suite of services, including third-party premium service plans, and third-party in-home service and repair of products, as well as delivery and installation, and in-home repair and maintenance. The company operates its stores under the name of hhgregg. As of February 08, 2012, it operated 208 stores in Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia. The company is headquartered in Indianapolis, Indiana.
- [By Dan Burrows]
True, there’s probably room for one national chain, such as Best Buy or maybe even HHGregg (HGG). After all, brick-and-mortar retail is hardly dead. But outside of a merger or roll-up, but it’s hard to see how RadioShack — a company that’s been behind the curve for a decade or more — could be the one left standing.
- [By Tabitha Jean Naylor]
It seemed Best Buy had failed to capitalize on the opportunity, and the former Circuit City stores were quickly purchased and converted by rival electronics retailer HH Gregg (NYSE: HGG). 2013 saw an ailing Best Buy go head-to-head to with HH Gregg — to see which would survive as the country’s premiere electronics retailer.
- [By Tess Stynes]
Among the companies with shares expected to actively trade in Monday’s session are Hhgregg Inc.(HGG), Select Comfort Corp.(SCSS) and Walgreen Co.(WAG)
Best Cheapest Stocks To Own Right Now: Basic Energy Services Inc. (BAS)
Basic Energy Services, Inc. provides various well site services to oil and natural gas drilling and producing companies in the United States. Its Completion and Remedial Services segment provides pumping services, such as cementing, acidizing, fracturing, coiled tubing, nitrogen, and pressure testing; rental and fishing tools; snubbing services; thru-tubing; cased-hole wireline services; and underbalanced drilling in low pressure and fluid sensitive reservoirs. This segment operates 228 pressure pumping units. It also operates 14 coiled tubing units; 49 air compressor packages; 12 wireline units; and 34 snubbing units. The companys Fluid Services segment offers oilfield fluid supply, transportation, storage, and construction services, which comprise the transportation of fluids and salt water; sale and transportation of fresh and brine water; rental of portable frac tanks and test tanks; operation of company-owned fresh water and brine source wells and non-hazardous wast ewater disposal wells; and preparation, construction, and maintenance of access roads, drilling locations, and production facilities. This segment owns and operates 955 fluid services trucks with a fluid hauling capacity of up to 150 barrels apiece. Its Well Servicing segment provides various services performed with a mobile well servicing rig and ancillary equipment, such as maintenance work, hoisting tools and equipment required by the operation, and plugging and abandonment services, as well as manufactures and sells workover rigs. It operates a fleet of 425 well servicing rigs. The companys Contract Drilling segment employs drilling rigs and related equipment to penetrate the earth to a desired depth and initiate production. This segment owns and operates 12 land drilling rigs. The company was formerly known as Sierra Well Service, Inc. and changed its name to Basic Energy Services, Inc. in 2000. Basic Energy Services, Inc. was founded in 1992 and is based in Fort Wor t h, Texas.
- [By Aaron Levitt]
For investors, the choice is clear — you need to focus globally when it comes to oil stocks. North American-focused oil stocks like C&J Energy (CJES) and Basic Energy Services (BAS) might not be up to snuff in such a highly challenging pricing environment.
- [By Jonathan Morgan]
German stocks declined the most in more than two months as a report showed that Germany’s auto market plummeted last month, while Bayer AG (BAYN) and BASF SE (BAS) fell.
Best Cheapest Stocks To Own Right Now: Strategem Capital Corp (SGE)
Strategem Capital Corporation (Strategem) is a Canada-based company. It is a publicly-traded merchant bank involved in acquiring interests in and developing companies. The Company takes early debt and/or equity positions in such emerging growth companies. As of December 31, 2009, the Company is focused on companies that explore or develop precious or base metals. Advisors’ Opinion:
- [By Corinne Gretler]
ThyssenKrupp AG (TKA) slumped 9.3 percent after Germany’s largest steelmaker raised 882.3 million euros ($1.21 billion) through a share sale. Standard Chartered Plc lost 8.1 percent. Sage Group (SGE) Plc, the U.K.’s biggest software maker, rose 6.8 percent after reporting revenue growth that exceeded analysts’ estimates. AZ Electronic Materials SA surged 43 percent after Merck KGaA (MRK) agreed to buy it for about 1.6 billion pounds ($2.6 billion).
Best Cheapest Stocks To Own Right Now: Mears Group PLC (MER)
Mears Group PLC (Mears Group) is a holding company. The principal activities of the Company are the provision of a range of outsourced services to the public and private sectors. The Company operated in three business segments: social housing, which provides a full repair and maintenance service to local authorities and other registered social housing landlords in the United Kingdom; domiciliary care, which provides personal care services to people in their own homes and mechanical and electrical (M&E), which consists of provision of design and build M&E services. The Company’s subsidiaries include Mears Limited, Haydon Mechanical & Electrical Limited, Scion Technical Services Limited, Scion Estates Limited, Jackson Lloyd Limited, Morrison Facilities Services Limited, Morrison Facilities Services Limited, Manchester Working Limited and Mears Home Improvements Limited. Effective August 13, 2013, Mears Group PLC acquired a 50% interest in Just Call 24/7 (UK) Ltd. Advisors’ Opinion:
- [By John Heinzl]
If you’re uncomfortable picking individual preferred shares, a diversified exchange-traded fund, such as CPD can be a good option. The fund, which has about $1.4-billion under management, holds more than 200 preferred shares, with banks and insurance companies accounting for more than half of the assets. The fund has a management expense ratio (MER) of 0.5%.
Best Cheapest Stocks To Own Right Now: BlackRock Enhanced Capital And Income Fund Inc (CII)
BlackRock Enhanced Capital and Income Fund, Inc. (the Fund), formerly BlackRock Capital and Income Strategies Fund, Inc., is a diversified, closed-end management investment company. The Fund seeks to provide current income and capital appreciation. It invests in a portfolio of equity and debt securities of United States and foreign issuers. The Fund’s portfolio includes common stocks, preferred stocks, foreign government obligations, corporate bonds, trust preferreds and municipal bonds. The Fund employs a strategy of writing (selling) call options on equity indexes in an attempt to generate gains from option premiums (the Index Option Strategy). Under the Index Option Strategy, the Fund will write call options primarily on the S&P 500 Index, but may, from time to time, write call options on other equity indexes as well. The Fund’s investment advisor is BlackRock Advisors, LLC, an indirect, wholly owned subsidiary of BlackRock, Inc.
The Fund invests in var ious industries, including commercial banks, diversified financial services, electric utilities, food products, gas utilities, insurance, thrifts and mortgage finance, and real estate investment trusts. On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. (Merrill Lynch) combined Merrill Lynch’s investment management business, Merrill Lynch Investment Managers, L.P. (MLIM), and its affiliates, including Fund Asset Management, L.P. (FAM), with BlackRock, Inc. to create an independent company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest in the combined company, and The PNC Financial Services Group, Inc. (PNC) has approximately a 34% economic and voting interest. The new company operates under the BlackRock name.
- [By Dividends4Life]
According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund’s market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 346%Bexil Advisers LLC (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer