The largest Internet companies have described video content as critical to their futures. Video advertising carries a huge premium to the banner ads that have dominated the industry’s revenue stream for years. In addition, there are the premium content firms that rely on subscriptions, first among them Hulu. Each can only sit and watch as Google Inc.’s (NASDAQ: GOOG) YouTube extends the period over which it has taken the massive part of Internet video “eyeballs.” Its dominance dwarfs the audiences of sites that need their video programming to thrive.
According to online video ranking data for last month posted by research firm comScore:
Google Sites, driven primarily by video viewing at YouTube.com, ranked as the top online video content property in August with 167 million unique viewers. AOL captured the #2 spot with 71.2 million, followed by Facebook with 62.2 million, NDN with 50.7 million and VEVO with 49.4 million. 46.7 billion video content views occurred during the month, with Google Sites generating the highest number at 17.4 billion, followed by AOL, Inc. with 992 million and Facebook with 803 million. Google Sites had the highest average engagement among the top ten properties.
Best Oil Service Stocks To Own For 2014: Stream Group Ltd (SGO)
Stream Group Limited, formerly LongReach Group Limited, is an Australia-based company operating in the information and communications technology (ICT) sector. The Company is engaged in the design, integration, installation and maintenance of integrated information and communications technology based products and services to the defense, public safety and security sectors, as well as for government, telecommunications and corporate customers, both locally and internationally. The Company together with its subsidiaries is also engaged in the provision of consulting services to certain key defense organizations. In January 2013, the Company sold its C4i business. Advisors’ Opinion:
- [By Jonathan Morgan]
Saint-Gobain (SGO) dropped 3.7 percent to 36.87 euros. Morgan Stanley cut its rating on the stock to underweight, similar to a sell recommendation, from equal weight, saying it doesn’t see a recovery yet in the European building industry and the contribution from emerging markets will slow.
Best Oil Service Stocks To Own For 2014: Discovery Minerals Ltd (DSCR)
Discovery Minerals Ltd., formerly Dhanoa Minerals Ltd., incorporated on July 11, 2005, is an exploration-stage company. The Company’s principal business is the acquisition and exploration of menial resources located in the United States, Central and South America. The Company operates in only one business segment, namely natural resource exploration, mining and recovery.
The Company does not own any properties that contain mineral reserves that are economically recoverable. The Company’s projects include Turquoise Mountain Project and Yukon Mining Project.
- [By Peter Graham]
Small cap mining stocks Discovery Minerals Ltd (OTCMKTS: DSCR), Zinco Do Brasil Inc (OTCMKTS: ZNBR) and Amalgamated Gold and Silver Inc (OTCMKTS: BCHS) have been getting some extra attention lately as one stock surged last Friday while the other two are or have been in the past, the subject of paid promotions. It goes without saying though that small cap mining stocks tend to be riskier than your average stock. But do these three small cap mining stocks have what it takes to produce a mother lode for investors? Here is a deeper dig into all three:
Discovery Minerals Ltd (OTCMKTS: DSCR) Is Branching Out Into Mining Apps
Small cap Discovery Minerals Ltd is a production stage company formed to acquire and develop natural resource properties. Activities include gold, precious metals and petroleum minerals, including rare earth minerals production and sales. In addition, the company has initiated a new program to evaluate undervalued assets, including clean tech and alternative energy investments, for potential addition to its portfolio. On Friday, Discovery Minerals Ltd surged 25% to $0.001 for a market cap of $1.66 million plus DSCR is down 73% over the past year and down 97.1% over the past five years according to Google Finance.
Best Oil Service Stocks To Own For 2014: Arris Group Inc(ARRS)
Arris Group, Inc. develops, manufactures, and supplies telephony, data, video, construction, rebuild, and maintenance equipment for the broadband communications industry worldwide. The company operates in three segments: Broadband Communications Systems (BCS); Access, Transport, and Supplies (ATS); and Media and Communications Systems (MCS). The BCS segment provides VoIP and high speed data products, including CMTS edge routers, 2-line residential EMTA, multi-line EMTA for residential and commercial services, wireless gateway, and high speed data cable modems; video/IP products comprising CMTS edge routers, broadband and universal EdgeQAM, and whole home gateway and media players; and video processing products, such as switched digital video systems, digital video encoders, transcoders, transraters, and statistical multiplexers. The ATS segment offers hybrid fiber-coaxial plant equipment products comprising headend and hub products, optical transmitters, optical amplifiers , optical repeaters, optical nodes, WiFi access points, ePON optical network units and line terminals, RF over glass optical network units, and radio frequency amplifiers; and infrastructure products for fiber optic or coaxial networks, which include cable and strand, vaults, conduit, drop materials, tools, connectors, and test equipment. The MCS segment provides media, delivery, and monetization platform products, such as video on demand management and distribution, and linear and advanced advertising; operations management systems comprising network and service assurance, and mobile workforce management; and fixed mobile convergence platform products, such as mobility application servers for continuity of services in wireless and PacketCable networks, and voice call continuity application servers for continuity of services in IP multimedia subsystem networks. The company offers its services to cable system operators. Arris Group, Inc. was founded in 1969 and is headquarte r ed in Suwanee, Georgia.
- [By Lee Jackson]
Arris Enterprises Inc. (NASDAQ: ARRS) got hit when press reports indicated that Apple may be working with Time Warner Cable and other companies on a new set-top box. The Jefferies team do not know the specifications of the device. It still may use “HDMI pass through” architecture like XBox One (and therefore will still require a cable STB to support cable content). That would bode well for Arris. The Jefferies target is lifted to $30. The Thomson/First Call estimate is $28.05. Arris closed on Friday at $27.87.
- [By Holly LaFon]
We initiated one new position in the third quarter, Aarons (AAN), and purchased shares in several existing investments, including small amounts in Apollo Group (APOL) and Devry (DV) and a larger increase in Arris Group (ARRS). We have written about the for-profit education companies in previous letters, so please refer to those letters should you want to familiarize yourself with APOL or DV.
- [By Rich Smith]
Suwanee, Ga.-based Arris Group (NASDAQ: ARRS ) is clear to buy Google’s (NASDAQ: GOOG ) Motorola Home cable set-top box division, the company announced Friday.
Best Oil Service Stocks To Own For 2014: AVX Corp (AVX)
AVX Corporation (AVX), incorporated on September 19, 1989, is a manufacturer and supplier of a broad line of passive electronic components and related products. All types of electronic devices use AVX’s passive component products to store, filter or regulate electric energy. The Company’s passive electronic component products include ceramic and tantalum capacitors, film capacitors, varistors, filters and other components manufactured in its facilities throughout the world and passive components manufactured by Kyocera Corporation of Japan (Kyocera). It also manufactures and sells electronic connectors and inter-connect systems and distribute and sell certain electronic connectors manufactured by Kyocera. It is organized by product line with five main product groups. AVX operates in three segments: Passive Components, Kyocera Electronic Devices (KED Resale) and Interconnect. On February 6, 2013, it acquired tantalum solid electrolytic capacitor related businesses from NICHICON CORP.
through manufacturing representatives and independent electronic component distributors. The Passive Components segment consists primarily of surface mount and leaded ceramic capacitors, radio frequency (RF) thick and thin film components, tantalum capacitors, film capacitors, ceramic and film power capacitors, super capacitors, electromagnetic interference (EMI) filters, thick and thin film packages, varistors, thermistors, inductors and resistive products. The KED Resale segment consists primarily of ceramic capacitors, frequency control devices, surface acoustic wave (SAW) devices, sensor products, RF modules, actuators, acoustic devices and connectors produced by Kyocera, and resold by AVX. The Interconnect segment consists primarily of AVX Interconnect (formerly Elco) automotive, telecom and memory connectors manufactured by AVX.
AVX manufactures a range of multi-layered ceramic and solid tantalum capacitors in many different sizes and configurations. The C! ompany also offers a line of advanced passive component products to fill the special needs of the customers. Its family of passive components also includes film capacitors, high energy/voltage power capacitors, and varistors. Its advanced products engineers work with some customers’ in-house technical staffs to design, produce, and manufacture customized products to meet the specifications of particular applications. Sales of advanced products accounted for approximately 41% of passive component net sales during the fiscal year ended March 31, 2013 (fiscal 2013).
AVX has a non-exclusive license to distribute and sell certain Kyocera manufactured electronic component and connector products to certain customers and in certain territories outside of Japan. The Company’s distribution and sale of certain Kyocera products broadens its range of products and further facilitates its ability to offer one-stop shopping for the customers’ electron ic components needs. The Kyocera KDP and KKC electronic components it sells include ceramic capacitors, RF modules, frequency control devices, SAW devices, sensor products, actuators, and acoustic devices. Resale product sales also include connectors manufactured by Kyocera. Sales of these products accounted for approximately 31% of net sales in fiscal 2013.
AVX manufactures and sells electronic connectors and interconnect systems for use in the telecommunications, information technology hardware, automotive electronics, medical device, defense and aerospace industries. The Company’s product lines include a range of industry-standard connectors, as well as products designed specifically for the customers’ applications. It produces fine pitch connectors used in portable devices, such as smart phones, other cell phones, notebook computers, global positioning system (GPS), and other hand held devices. In addition, it offers specialty c onnectors designed to address customer specific applications! across a! range of products and end markets. Approximately 33% of combined Interconnect and KEC Resale Connector net sales in fiscal 2013 consisted of connectors manufactured by Kyocera.
The Company competes with Murata Manufacturing Company Ltd, TDK Corporation, KEMET Corporation, NEC Corporation, Yageo Corporation, Taiyo Yuden Co. Ltd., Samsung Electro-Mechanics, Vishay Intertechnology, Inc., Tyco Electronics, Amphenol, Molex Incorporated, FCI and Erni Electronics.
- [By Ben Levisohn]
Competitor AVX Corp. (AVX) has gained 1.1% to $12.96, while Molex (MOLX) has dropped 0.2% to $29.28 and Amphenol (APH) has ticked up 0.3% to $76.32.
Best Oil Service Stocks To Own For 2014: Brown-Forman Corp (BF.B)
Brown-Forman Corporation, incorporated on October 19, 1933, primarily manufactures, bottles, imports, exports, markets, and sells a variety of alcoholic beverage brands. The Company’s principal brands are Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Whiskey, Pepe Lopez Tequilas, Jack Daniel’s Single Barrel, Woodford Reserve Bourbons, Jack Daniel’s Ready-to-Drinks, Canadian Mist Blended Canadian Whiskies, Jack Daniel’s Tennessee Honey, Chambord Liqueur, Jack Daniel’s Winter Jack Chambord Vodka, Gentleman Jack, Collingwood Canadian Whisky, Southern Comfort, Early Times Bourbon, Southern Comfort Ready-to-Drinks, Early Times flavored line extensions, Southern Comfort flavored line extensions, Early Times Kentucky Whisky, Finlandia Vodkas, Korbel California Champagnes, Finlandia Ready-to-Drinks, Little Black Dress Vodkas, Antiguo Tequila, Maximus Vodkas, el Jimador Tequilas, Old Forester Bourbon, el Jimador New Mix Ready-to-Drinks, Sonoma-Cutrer Wines, Herradura Tequilas, and Tuaca Liqueur.
The Company’s products are sold in more than 150 countries around the world. The Company’s international markets include Australia, the United Kingdom, Mexico, Germany, Poland, France, Russia, Japan, Turkey, Canada, Spain, Czech Republic, South Africa, Brazil and Italy.
The Company competes with Bacardi Limited, Beam Inc., Davide Campari-Milano S.p.A., Diageo plc, LVMH Moet Hennessy Louis Vuitton S.A., Pernod Ricard S.A., and Remy Cointreau S.A.
- [By Sue Chang and Saumya Vaishampayan]
BFB: Brown-Forman Corp. (BF.B) Class B shares gained 3.7%. The alcoholic beverage maker reported fiscal third-quarter earnings Wednesday that beat expectations and boosted its full-year view on per-share earnings to between $2.95 and $3.05.
- [By Marc Bastow]
Alcohol manufacturer and distributor Brown-Forman (BF.B) raised its quarterly dividend 13.7% to 29 cents per share, payable on Dec. 27 to shareholders of record as of Dec. 4.
BF.B Dividend Yield: 1.54%
- [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 Brown-Forman (NYSE: BF.B ) , whose recent revenue and earnings are plotted below.
- [By Holly LaFon]
TR: Definitely. The most likely places that they’ll probably pop up are counterparts to the same businesses that we already own because the economics are good for Richemont (XSWX:CFR). They sell precious jewelry and luxury goods and watches to aspirational consumers around the world. The same economics drive Swatch. I don’t own Swatch, in big measure. I own it for a handful of clients. But that’s kind of the natural sourcing ground for me. I don’t own Compari. I do own Pernod Ricard (PDRDF), Diageo (DEO), Brown Forman (BF.B). Compari’s a great company. They have different brands and strengths in different categories than the three companies that we already own. I could own Compari.
Best Oil Service Stocks To Own For 2014: Bovis Homes Group PLC (BVS)
Bovis Homes Group PLC is a builder of traditional homes in England and Wales. The Company’s business involves the designing, building and selling of new homes for both private and public sector customers. The Company delivers projects such as Land acquisition, Planning, Legal, Design, Surveying, Engineering, Purchasing, Construction, Sales and marketing, Public relations and Customer service. Advisors’ Opinion:
- [By Inyoung Hwang]
Bovis Homes Group Plc (BVS) climbed 4 percent to 790 pence. Liberum Capital Ltd. raised its rating on the housebuilder to buy from hold. Persimmon Plc (PSN), the U.K.’s largest residential property developer, gained 2.5 percent to 1,255 pence.
Best Oil Service Stocks To Own For 2014: Cavium Networks Inc.(CAVM)
Cavium, Inc. designs, develops, and markets semiconductor processors for intelligent and secure networks. Its semiconductor products enable customers to develop networking, wireless, storage, and electronic equipment that are application-aware and content-aware, and process voice, video, and data traffic. The company?s products also include a suite of embedded security protocols, which enable unified threat management (UTM), secure connectivity, network perimeter protection, deep packet inspection, network virtualization, broadband gateways, third generation/fourth generation (3G/4G) wireless infrastructure, storage systems, wireless high-definition multimedia interface (HDMI) cable replacement, and embedded video applications. Its products are used in networking equipment, such as routers, switches, content-aware switches, UTM and other security appliances, application-aware gateways, voice/video/data gateways, wireless local area network, 3G/4G Wimax/Long Term Evolution access, aggregation and gateway devices, storage networking equipment, servers and intelligent network interface cards, Internet protocol surveillance systems, digital video recorders, wireless HDMI cable replacement systems, and video conferencing systems; and connected home and office equipment, such as print servers, wireless routers, and broadband gateways. In addition, the company offers embedded Linux operating system, related development tools, support, and professional services. It sells its products directly or through contract manufacturing organizations and distributors to the providers of networking, wireless, storage, and consumer electronic equipment; and to original design manufacturers and contract electronics manufacturers primarily in the United States, China, Taiwan, Japan, and Malaysia. The company was formerly known as Cavium Networks, Inc. and changed its name to Cavium, Inc. in June 2011. Cavium, Inc. was founded in 2000 and is headquartered in San Jo se, California.
- [By Lee Jackson]
Cavium Inc. (NASDAQ: CAVM) generates 18% of their revenue from their association with Cisco. While the company had solid earnings and beat analysts estimates, the coming quarters could prove more difficult. The Thomson/First Call price target is $39.50.
Best Oil Service Stocks To Own For 2014: The Medicines Company(MDCO)
The Medicines Company, a pharmaceutical company, provides various medicines to hospitals for advancing the treatment of critical care patients worldwide. The company markets Angiomax, an intravenous direct thrombin inhibitor for use as an anticoagulant in combination with aspirin in patients with unstable angina undergoing percutaneous transluminal coronary angioplasty and for use in patients undergoing percutaneous coronary intervention; and Cleviprex, an intravenous small molecule calcium channel blocker for the reduction of blood pressure, as well as to treat neurocritical care and cardiac surgery patients. Its products under development include Cangrelor that is in Phase III clinical trial acts as an intravenous small molecule antiplatelet agent to prevent platelet activation and aggregation; and Oritavancin, which is in Phase III clinical trial acts as an investigational intravenous antibiotic for the treatment of serious gram-positive bacterial infections, including acute bacterial skin and skin structure infections. The company?s products under development also comprise MDCO-157, a pre-registration stage product for platelet inhibition in patients suffering from acute coronary syndrome (ACS), and patients experiencing myocardial infarction, stroke, or peripheral arterial disease; MDCO-2010, a small molecule serine protease inhibitor that is in Phase II clinical trial used for the reduction of blood loss during surgery; and MDCO-216, which is in Phase I clinical trial used for the reversal of atherosclerotic plaque development and the reduction of the risk of coronary events in patients with ACS. Its products also consist of Argatroban, a direct thrombin inhibitor used as anticoagulant for prophylaxis or for the treatment of thrombosis; and acute care generic products. The Medicines Company was founded in 1996 and is based in Parsippany, New Jersey.
- [By Jake L’Ecuyer]
Equities Trading DOWN
Shares of The Medicines Company (NASDAQ: MDCO) were down 14.64 percent to $24.26 after the company provided an update on Angiomax patent litigation.
- [By Lisa Levin]
The Medicines Company (NASDAQ: MDCO) shares touched a new 52-week low of $24.17 after the company provided an update on Angiomax patent litigation.
- [By Jake L’Ecuyer]
Equities Trading DOWN
Shares of The Medicines Company (NASDAQ: MDCO) were down 15.34 percent to $24.06 after the company provided an update on Angiomax patent litigation.
Best Oil Service Stocks To Own For 2014: SuperValu Inc.(SVU)
SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. Its stores offer grocery, general merchandise, health and beauty care, pharmacy, and fuel products. The company operates stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher?s, Jewel-Osco, Lucky, Shaw?s, Shop ?n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates approximately 2,394 traditional and hard-discount retail food stores, including 899 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers, as well as provides logistics support services. SUPERVALU was founded in 1871 and is based in Eden Prairie, Minnesota.
- [By Vanina Egea] of 700 to 800 small format stores annually adds to an increasing number of dollar stores subscribing to loss-leader strategies. In this context, the firm undertook a fair price plus promotion strategy in fiscal 2013. This initiative has lowered prices to a competitive position at the expense of margins, in the hope for market share gains in the long term.
Apart from underperforming stores sellout, Supervalu has undertaken additional cost reduction initiatives which are expected to lower administrative expenses by $250 million through fiscal 2014. The reduction of its store count, I turn, is expected to generate $80 million to $90 million in savings in the next three years.
In the third quarter of fiscal 2013, the firm reported adjusted earnings of $0.13, a significant improvement compared to the negative $0.07 delivered the year before. Revenues, however, fell by $1.05 in relation to the prior year, due to negative comps in the retail segment, which have been declining for four consecutive years.
Further, the firm does not have any share buyback plans for fiscal 2014 and will not pay dividends to shareholders until March 2018.
Supervalu showcases a negative return on capital of -9.24% compared to the industry average of 20.02%. And its three-year average revenue growth delivered a dismal -25.1% compared to its peers’ median of 1.0%.
Investment guru John Keeley (Trades, Portfolio) recently sold out his holding in the company, backing my feeling that despite the company’s efforts, a good position in a highly competitive market will be hard to achieve.
Disclosure: Vanina Egea holds no position in any stocks mentioned.
About the author:Vanina EgeaA fundamental analyst at Lone Tree Analytics
Visit Vanina Egea’s Website
Rating: 5.0/5 (2 votes)
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- [By Bloomberg]
Matthew Staver/Bloomberg via Getty Images Cerberus Capital Management’s $9 billion deal to merge Safeway (SWY) with Albertsons is a bet that a larger supermarket chain can better fend off an attack on the grocery business by big-box stores and online retailers. Safeway, the No. 2 grocery-store operator in the U.S., agreed Thursday to be acquired by Cerberus’s Albertsons for about $40 a share. The deal will unite two chains with locations across the country — especially in the West — and narrow Kroger’s (KR) lead as the nation’s top supermarket company. Cerberus, a private-equity firm that has spent years investing in the supermarket industry, will use the new company’s heft to combat a growing array of threats. Big-box retailers such as Walmart Stores (WMT) and warehouse clubs are increasingly targeting grocery customers, using their size and breadth of products to attract shoppers. Online food sellers and delivery services, including Amazon.com (AMZN), also have made neighborhood supermarkets less essential than before. “This merger will improve our competitive position,” Safeway Chief Executive Officer Robert Edwards, who will be in charge of the combined company, said Thursday on a conference call. “Our customers will benefit from significant cost saving synergies and a stronger management team.” Safeway shares fell as much as 6.3 percent to $37 in extended trading, reflecting concerns the deal may not close at the current price. The shares had increased 21 percent this year through the close of regular trading Thursday, outpacing the 1.6 percent gain of the Standard & Poor’s 500 Index. Blackhawk Network As part of the agreement, investors will get $32.50 a share in cash, plus stock in Safeway’s gift-card unit Blackhawk Network Holdings (HAWK), according to a statement Thursday. Safeway, based in Pleasanton, Calif., had said last month that it was in talks about a sale of the company. Assuming a diluted share count of about 235 million shares,
- [By Grace L. Williams]
Curious to see what the competition was doing, we found Safeway (SWY) down 0.1% at $31.67, Supervalu (SVU) down 1.4% at $6.25, and Sprouts Farmers Markets (SFM) up 0.9% at $39.60.