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Best Chemical Companies To Own For 2017: Wells Fargo & Company(WFC)
Wells Fargo & Company, through its subsidiaries, provides retail, commercial, and corporate banking services primarily in the United States. The company operates in three segments: Community Banking; Wholesale Banking; and Wealth, Brokerage, and Retirement. The Community Banking segment offers deposits, including checking, market rate, and individual retirement accounts; savings and time deposits; and debit cards. Its loan products comprise lines of credit, auto floor plans, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, health savings accounts, and credit cards. This segment also provides equipment leases, real estate financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, loans secured by autos, and merchant payment processing services; purchases sales finance contracts from retail merchants; and a family of funds, and investment managemen t services. The Wholesale Banking segment offers commercial and corporate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury and investment management, institutional fixed-income sales, commodity and equity risk management, insurance, corporate trust fiduciary and agency services, and investment banking services. This segment also provides banking products for commercial real estate market, and real estate and mortgage brokerage services. The Wealth, Brokerage, and Retirement segment offers financial advisory, brokerage, and institutional retirement and trust services. As of December 31, 2010, the company served its customers through approximately 9,000 banking stores in 39 States and the District of Columbia. Wells Fargo & Company was founded in 1929 and is headquartered in San Franc i sco, California.
- [By Wayne Duggan]
The big story this week could be the kick-off of big bank Q1 earnings season. Expectations appear to be extremely low for the banks, and Credit Suisse notes that the “Big Four” stocks, JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp (NYSE: BAC), Citigroup Inc (NYSE: C) and Wells Fargo & Co (NYSE: WFC) all screen cheap ahead of earnings.
- [By Ben Levisohn]
Baird’s David George and Garrett Holland came away from Wells Fargo’s (WFC) investor day with the impression that the “stagecoach is well positioned” for the future, but perhaps not outperformance against the likes of JPMorgan Chase (JPM), Citigroup (C), and Bank of America (BAC). They explain why:
Noah Berger/Bloomberg News
Risk/reward for shares fairly balanced. Presentations confirmed our view that the company is better positioned vs. most peers in terms of strategy, execution, management depth, digital offerings, etc., and its diversified business model drives more consistent performance through the cycle. While ROE and ROA targets were lowered, performance targets are largely in line with forward estimates and remain at industry-leading levels. Shares look more interesting after recent underperformance, but we see better value in the money-center banks at current prices.
UBS analyst Brennan Hawken and team write that the investor day reinforced their “concerns about Wells Fargo’s near-term earnings power.” He explains:
Wells Fargo’s investor day delivered few changes to the operating strategy, but the impact of a low rate environment, increased levels of liquidity, expense pressures, and credit provisions led to a reduction in the targets for ROA (to 1.1-1.4%, down 20 bps from the 2014 investor day) and ROE (to 11-14%, down 100 bps). The reduced targets reinforce our confidence in our estimates, which are in the lower half of these new target ranges in 2016 and 2017, and we continue to see downside to consensus expectations. We are not changing our estimates, with stronger expectations for mortgage revenues offsetting slightly higher funding costs related to TLAC.
He looks to be in the minority. Shares of Wells Fargo have climbed 3% to $50.69 at 1:49 p.m. today–and have even outperformed the so-called money-center banks like JPMorgan Chase, Citigroup, and Bank of America
Best Chemical Companies To Own For 2017: Nuance Communications Inc.(NUAN)
Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. It offers dictation and transcription solutions and services, which automate the input and management of medical information; and speech recognition solutions for radiology, cardiology, pathology, and related specialties that help healthcare providers dictate, edit, and sign reports without manual transcription. The company also offers mobile and consumer solutions and services comprising an integrated suite of voice control and text-to-speech solutions, desktop and portable computer dictation applications, predictive text technologies, mobile messaging services, and emerging services, such as dictation, Web search, and voicemail-to-text for manufacturers and suppliers of mobile phones, automotive products, personal navigation devices, computers, and other consumer electronics. In addition, it provides customer service business intelligence and authentication solutions for enterprises in the telecommunications, financial services, travel, entertainment, and government sectors to support, understand, and communicate with their customers. Further, the company offers document imaging, print management, and PDF solutions to multifunction printer manufacturers, home offices, small businesses, and enterprise customers; software development toolkits for independent software vendors; and licenses its software to multifunction printer manufacturers. Nuance Communications, Inc. markets and sells its products through direct sales force; its e-commerce Web site; and a network of resellers, including system integrators, independent software vendors, value-added resellers, hardware vendors, telecommunications carriers, and distributors. The company was formerly known as ScanSoft, Inc. and changed its name to Nuance Communications, Inc. in November 2005. Nuance Communications, Inc. was founded in 1992 and is headquartered in Burlington, Massachusetts. Advisors’ Opinion:
- [By Monica Gerson]
Nuance Communications Inc. (NASDAQ: NUAN) is projected to post its quarterly earnings at $0.35 per share on revenue of $491.14 million.
Zebra Technologies Corp. (NASDAQ: ZBRA) is estimated to report its quarterly earnings at $1.22 per share on revenue of $878.67 million.
- [By Lee Jackson]
Nuance Communications Inc. (NASDAQ: NUAN) is the company that brought you the Siri application that you can talk to on your iPhone. The stock also got crushed after an earnings miss this year. Mega-investor Carl Icahn has accumulated a 16.9% share of the company and may be looking for more. The consensus target for the stock sits at $22.
Top 10 Long Term Companies For 2017: Costco Wholesale Corporation(COST)
Costco Wholesale Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. The company’s product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, toys, seasonal items, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, house wares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It also provides business and gold star (individual) membership services. As of April 26, 2011, the company operated 581 warehouses, including 425 in the United States and Puerto Rico, 80 in Canada, 22 in the Uni ted Kingdom, 7 in Korea, 6 in Taiwan, 8 in Japan, 1 in Australia, and 32 in Mexico. It also has Costco Online, an electronic commerce Web site, at costco.com in the United States and at costco.ca in Canada. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
- [By Ben Levisohn]
Shares of American Express have gained 1% to $65.69 at $11:37 a.m. today, while Costco Wholesale (COST) has dropped 0.9% to $151.40, and JetBlue Airways (JBLU) is off 2.4% at $20.48.
- [By Monica Gerson]
Analysts are expecting Costco Wholesale Corporation (NASDAQ: COST) to have earned $1.22 per share on revenue of $27.09 billion in the latest quarter. Costco shares gained 0.27 percent to $142.95 in after-hours trading.
- [By Ben Levisohn]
Guggenheim’s John Heinbockel and team explain why shares of Costco Wholesale (COST) are getting hammered today–and why they’re optimistic enough to start looking for “a compelling entry point”:
Customers at Costco Wholesale Luke Sharrett/Bloomberg News
Investors concerned about uncharacteristically choppy U.S. comps will not take much solace from March results. Ex-gas U.S. comps rose just 3%, below our 4% estimateCanada and international comps were also light, but strong in absolute terms…
U.S. ex-gas comps rose 3%, below our 4% estimate. During the past four years, there have been just four months with sub-4% U.S. comps; two have occurred since January. What explains this? Fresh food deflation, especially in meat, is a factor. So are tough year-ago compares, with gains of 6-7% during this period. Lastly, we continue to believe that the company may be maxxing out traffic gains with its most loyal members. Importantly, as food inflation returns and compares ease, we expect U.S. comps to strengthen to 4-5%…
We remain in search of a compelling entry point ahead of a re-acceleration in operating momentum in 2017; for the first time in several years, our estimate is above consensus$6.15 versus $6.07with none of these forecasts incorporating a likely membership fee increase…
…our 2017 estimate sits above the current consensus, the first time that has been the case in some time…and there could be upside to this estimate. Our optimism is fueled by several factors, including 1) accelerating “core” U.S. comps, 2) a moderating Fx hit to both sales and EBIT, 3) improving product gross margin, driven by mix and modest competitive intensity, 4) increasing expense leverage as comps strengthen and IT cost growth slows, and 5) the presence of an extra week. Our model calls for a reasonable 8% “core” EBIT growth ratea hike in the membership fee could add
- [By Spencer White]
American Express Company (NYSE: AXP) held its annual Investor’s Day event Thursday, hoping to reassure investors spooked by the company’s loss of the Costco Wholesale Corporation (NASDAQ: COST) co-brand account, and its announcement of $1 billion in cost reductions last month. The credit card market has squeezed AmEx, as its higher swipe fees face intense competitive pressure.
Best Chemical Companies To Own For 2017: 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 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.
- [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.