DryShips (NASDAQ: DRYS ) reported fiscal third-quarter results Wednesday night that blew away estimates. But things weren’t as good as they seemed, even as shares rose in after-hours trading.
Revenue jumped 49% to $602 million, and adjusted earnings per diluted share were $0.07, compared with a loss in the year-ago period. Analysts were looking for just $533 million in revenue and adjusted EPS of $0.05. So far, so good — but in the shipping business, DryShips disappointed, and disappointed badly.
Don’t let the operating profit fool you
I’ve explained it before, and I’ll explain it again: DryShips owns a majority stake in Ocean Rig UDW (NASDAQ: ORIG ) . As such, it reports both companies on its financial statements mixed together. CEO George Economou put it well back during the August conference call when he stated, “I would like to clarify for everyone, once again, that DryShips is a pure shipping company with predominantly spot charter market exposure in 2014 and beyond and a majority stake in Ocean Rig, which operates as the deepwater drillships.”
Best Prefered Stocks To Own For 2015: ChinaNet Online Holdings Inc.(CNET)
ChinaNet Online Holdings, Inc. offers business-to-business integrated Internet service provider services for small and medium enterprises? sales networks in the People?s Republic of China. Its multi-platform advertising network consists of the Website 28.com, an Internet advertising portal; ChinaNet TV, a television production and advertising unit; and bank kiosk advertising unit, which is primarily used as an advertising platform for clients in the financial services industry. The company, through its Internet portal 28.com, enables companies and entrepreneurs to advertise their business information, brands, products, services, and business opportunities, as well as to build sales channels and develop relationships directly with franchisees, sales agents, distributors, and/or resellers. The 28.com also offers campaign management tools, including lead generation and capture, advanced tracking, search engine marketing and optimization, resource scheduling, and content man a gement for the company?s clients. The company, through its ChinaNet TV, creates and distributes television shows comprising advertisements similar to infomercials, as well as promotions for various clients during the allotted time; and produces Web video advertisements for clients to be placed on 28.com. Its bank kiosks provide advertising services and Internet access to perform non-cash banking functions, such as transferring money, purchasing annuities and/or insurance, and paying bills. In addition, it offers cloud-based management tools. As of December 31, 2010, the company provided advertising, marketing, and lead generation services to approximately 1,200 clients in various consumer focused business categories comprising 883 clients. It serves customers in food and beverage; cosmetics and healthcare; footwear, apparel, and garments; home goods and construction materials; and environmental protection equipment industries. The company was founded in 2003 and is headqua r tered in Beijing, China.
- [By James E. Brumley]
If you missed the triple-digit gain on Chinanet Online Holdings Inc. (NASDAQ:CNET) the first time around, this may be your second chance. While there’s sure to be plenty more volatility in the cards for CNET, that volatility so far has been predictable enough to make – and save – some pretty good money.
- [By James E. Brumley]
It’s fun to be right, but being “right” about entering a stock trade is irrelevant if you’re not also going to be right about the exit. With that in mind, though yours truly only suggested Chinanet Online Holdings Inc. (NASDAQ:CNET) yesterday, it’s time to go ahead and lock in your gain – your 140%-ish gain – by selling CNET at whatever price you can get for it now….. like right now.
Best Prefered Stocks To Own For 2015: Aviv REIT Inc (AVIV)
Aviv REIT, Inc., incorporated on July 30, 2010, is a self-administered real estate investment trust (REIT) , specializing in the ownership and triple-net leasing of post-acute and long-term cares skilled nursing facilities (SNF). The Company generates its cash rental stream by triple-net leasing its properties to third-party operators , including for all operating costs and expenses related to the property, maintenance and repair obligations and other required capital expenditures. The Company owns 316 properties that are triple-net leased to 38 operators in 28 states.
In May 2014, the Company acquired eight post-acute and long-term care skilled nursing facilities in California and Texas. In June 2014, Aviv REIT Inc acquired a post-acute and long-term care skilled nursing facility (SNF) in Kentucky. In July 2014, Aviv REIT Inc acquired two assisted living facilities (ALFs) and one post-acute and long-term care skilled nursing facility (SNF). Effective Septembe r 03, 2014, Aviv REIT Inc acquired four nursing facilities.
- [By Jayson Derrick]
Aviv REIT (NYSE: AVIV) has agreed to sell itself to Omega Healthcare Investors (NYSE: OHI) for $3 billion, or $34.97 per share. Omega Healthcare expects the deal to be accretive to its FFO and FAD in 2015. Shares of Aviv REIT hit new 52-week highs of $34.71 before closing the day at $33.73, up 12.06 percent. Shares of Omega Healthcare lost 1.78 percent, closinga t $38.16.
Best Prefered Stocks To Own For 2015: Daimler AG (DAI)
Daimler AG (Daimler), incorporated on May 6, 1998, develops, manufactures, distributes and sells a range of automotive products, mainly passenger cars, trucks, vans and buses. It also provides financial and other services relating to its automotive businesses. The Company offers its automotive products and related financial services primarily in Western Europe and in the North American Free Trade Agreement (NAFTA) region, which consists of the United States, Canada and Mexico. During the year ended December 31, 2009, the Company derived approximately 46% of its revenue from sales in Western Europe and 21% from sales in the United States. It operates in five segments: Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. Its other business interests consist primarily of its equity investments in the European Aeronautic Defence and Space Company EADS N.V. (EADS) and in Tognum AG. In October 2009, Deutsche Bank AG completed the disposal of its interest in the Company. In June 2011, Daimler AG and Rolls-Royce Holdings PLC had secured around 94% interest in Tognum AG-DJ.
Mercedes-Benz Cars designs, produces and sells Mercedes-Benz passenger cars, Maybach luxury sedans and smart micro compact passenger cars. During 2009, Mercedes-Benz Cars contributed approximately 51% of the Company’s revenue. The Company offers Mercedes-Benz passenger cars with a range of diesel and gasoline engines. Under the AMG brand, it offers versions of Mercedes-Benz vehicles with V8 or V12 engines in all classes, except in the A-, B-, R-, GL- and GLK-Classes. The Mercedes-Benz passenger car product range consists of S-Class, E-Class, C-Class, A-/B-Classes and ML-/R-/G-/GL-/GLK-Classes.
The S-Class is a line of luxury sedans, which are available in short and long wheelbase versions. In June 2009, the Company introduced a new generation of the S-Class sedans, including a hybrid version, the new S 400 BlueHYBRID. The S-Class sed! ans are complemented by the CL, a top-of-the-line two-door coupe, and the SL, a luxury roadster. The E-Class is a line of luxury sedans, coupes, convertibles and station wagons. It also offers the CLS, a four-door coupe based on the E-Class. The C-Class is a line of compact luxury sedans and station wagons. The CLC Sports Coupe and the SLK, a two-seat roadster, complement the C-Class product family.
The A-Class is a front wheel drive compact and the B-Class is a front wheel drive 4-door Compact Sports Tourer (CST). The Company does not offer the A- and B-Classes in the United States. The ML-Class is a line of sport utility vehicles with permanent all-wheel drive. The R-Class is a line of SUV Tourers, which is available in a short and a long wheelbase version. The GL-Class is a line of seven seat luxury sport utility vehicles. The GLK-Class is a line of compact sport utility vehicles. The G-Class is a line of cross country vehicles with permanent four-wheel driv e that come in a short and a long wheelbase version, and as a convertible. Under the Maybach brand, the Company offers a line of luxury sedans with outstanding luxury, comfort, and individuality. Maybach sedans are available in a short and a long wheelbase version, including the Maybach 57S and 62S as sportier variations. The smart brand represents a micro compact car concept. It offers two models, the smart fortwo coupe and the smart fortwo cabrio.
Daimler Trucks manufactures and sells trucks and specialty vehicles under the brand names Mercedes-Benz, Freightliner, Western Star, Thomas Built Buses and Fuso. During 2009, Daimler Trucks contributed approximately 21% of its revenue. During 2009, the Company ceased production of trucks under the Sterling brand name. The Company’s European Mercedes-Benz truck lines consist of the Actros and the Axor in the heavy-duty category, the Atego in the medium-duty category, and the specialty v ehicles Econic and Zetros. The Unimog, a four-wheel drive ve! hicle for! special purpose applications, complements the line-up. In Turkey and Brazil, it manufactures heavy-duty and medium-duty trucks for the respective local and certain export markets. Its Mercedes-Benz trucks range from 6 metric tons gross vehicle weight (GVW) to 41 metric tons GVW.
The Company’s United States subsidiary, Daimler Trucks North America LLC, manufactures trucks and buses (based on truck chassis) in Classes 3 through 8 (from 9,000 lbs. GVW to 160,000 lbs. GVW) and sells them under the Freightliner, Western Star, and Thomas Built Buses brand names, primarily in the NAFTA region. It also manufactures chassis for trucks, buses, walk-in vans and motor homes in Classes 3 through 7 (from 10,000 lbs. GVW to 33,000 lbs. GVW). During 2009, Freightliner introduced a new version of the Coronado, an on-highway truck. It Japan-based subsidiary, Mitsubishi Fuso Truck and Bus Corporation (MFTBC), offers a truck portfolio and several bus lines, primarily for the Jap anese and other Asian markets. The line-up includes the Canter trucks (light-duty), the Fighter trucks (medium-duty) and the Super Great trucks (heavy-duty) and also certain bus models (Rosa and Aero). MFTBC also sells trucks in Africa, Australia, Europe, Latin America and the United States.
Mercedes-Benz Vans designs, manufactures and sells vans under the brand names Mercedes-Benz and Freightliner. During 2009, Mercedes-Benz Vans contributed approximately 8% of its revenue. The Company offers three lines of Mercedes-Benz vans between 1.9 metric tons (t) and 7.5t gross vehicle weight (GVW): the Vario, the Vito/Viano and the Sprinter. In the NAFTA region it sells the Sprinter under the Freightliner brand name and, since January 1, 2010, also under the Mercedes-Benz brand name. As of December 31, 2009, subsidiaries of Chrysler Holding LLC sold the Sprinter in the United States under the Dodge and Freightliner brand names, and in C anada under the Dodge brand name.
Daimler Buse! s
Daimler Buses is a global supplier in the worldwide bus market. During 2009, Daimler Buses contributed approximately 5% of the Company’s revenue. Its product portfolio includes city buses, coaches, intercity buses, midi buses and bus chassis. It sells complete buses under the Mercedes-Benz and Setra brands in Europe, under the Mercedes-Benz brand name in Mexico, and under the Setra and Orion brand names in the United States and Canada. In addition, Daimler Buses produces and sells worldwide a range of bus chassis under the brand name Mercedes-Benz.
Daimler Financial Services
The Company’s financial services activities contributed approximately 15% of its revenue during 2009. It consists principally of financing and leasing services supporting its Mercedes-Benz and other vehicle businesses. The financial services the Company offers consist mainly of customized financing and leasing packages for its retail and wholesale customers in the au tomotive sector. It also provides financing to its dealers for vehicle inventory and property, plant and equipment purchases, and it offers insurance brokerage and fleet management services, including dealer property and casualty insurance. In Germany, the Company operates a licensed bank, the Mercedes-Benz Bank. The Mercedes-Benz Bank offers financial services to its customers and employees in Germany. These services include leasing and sales financing services, car savings plans, credit cards and demand deposit accounts. In addition, the Mercedes-Benz Bank operates branches in Great Britain and Spain to refinance the local dealer portfolios.
The Company competes with BMW, Volkswagen, Fiat, Ford, General Motors, PSA, Renault, Tata Motors, Toyota, Honda, Nissan, Suzuki, Scania, Iveco, Volvo, DAF, Navistar International, Paccar, Hino, Isuzu, MAN Commercial Vehicles, Irisbus and Agrale.
- [By Jonathan Morgan]
Daimler AG (DAI), the world’s third-largest maker of luxury cars, lost 1.4 percent to 49.65 euros, falling for the first time in seven days. Volkswagen AG (VOW), Europe’s biggest automaker, slipped 1.3 percent to 171.60 euros.
- [By Dorothee Tschampa]
Peugeot dropped as much as 55 cents to 6.83 euros and traded 5.9 percent lower as of 11:20 a.m. in Paris. Renault was down 4.3 percent and VW was 3.5 percent lower. Bayerische Motoren Werke AG (BMW) was down 3.5 percent and Daimler AG (DAI) was 4.7 percent lower.
Best Prefered Stocks To Own For 2015: Equinix Inc.(EQIX)
Equinix, Inc. provides data center services for the protection and connection of information assets to enterprises, financial service companies, and content and network service providers worldwide. It connects businesses with partners and customers through a platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. The company operates International Business Exchange (IBX) centers, or IBX data centers, across 38 markets in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Equinix offers data center services, including premium data center co-location; interconnection and exchange services; network connectivity; business continuity; and outsourced IT infrastructure services. The company connects approximately 4,000 enterprises, cloud, digital content, and financial companies, including 680 network service providers to help them grow their businesses, improve application performance, and protect their vita l digital assets. It markets its products and services through direct sales force and channel marketing program. Equinix was founded in 1998 and is headquartered in Redwood City, California.
- [By Tom Taulli]
Innovation: Innovation is a major priority at AT&T. And so far, it looks like the company is making savvy moves, particularly with its push into the cloud. To this end, AT&T has rolled out NetBond, which involves alliances with top providers like IBM (IBM), Microsoft (MSFT), CSC (CSC) and Equinix (EQIX). But perhaps the most interesting growth initiative is Digital Life, which allows customers to use their smartphones as remote control devices with homes and cars. All in all, the opportunity could be huge, adding another nice revenue stream — AT&T already has agreements with companies like GM (GM), Ford (F), Nissan, Audi, BMW and Tesla (TSLA)
- [By Steve Sears]
New stocks in what Goldman calls the “Hedge Fund VIP list,” include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).
- [By Paulo Santos]
Using Equinix (EQIX) and Rackspace Hosting (RAX) as comparables, I was pumped up. CONE was projecting $135 million in EBITDA for 2013 (at the midpoint of guidance). On a $445 million market capitalization with $277.7 million in net debt, it traded at an EV/EBITDA of just 5.4 times. Compare that to EQIX at 13 times or RAX at 15 times. This was a bargain and growing revenues at a 18% clip year-on-year, too, above EQIX’s 10% or RAX’s 15%.
Best Prefered Stocks To Own For 2015: Commonwealth Bank of Australia (CBAUF)
Commonwealth Bank of Australia (the Bank) is engaged in the provision of a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Bank is a provider of integrated financial services, including retail, business and institutional banking, superannuation, life insurance, general insurance, funds management, broking services and finance company activities. Its operating segments include Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, Wealth Management, New Zealand, Bankwest and Other. Its retail banking services include home loans, consumer finance, retail deposits and distribution. In December 2013, the Bank and its related bodies corporate had ceased to be the substantial holder of Reject Shop Ltd. In January 2014, the Bank and its related bodies corporate had ceased to be the substantial holder of Southern Cross Media Group Ltd. Advisors’ Opinion:
- [By WWW.MARKETWATCH.COM]
LOS ANGELES (MarketWatch) — Australia shares nudged lower early Friday, with the S&P/ASX 200 (AU:XJO) down 0.2% to erase the previous session’s 0.2% gain, dragged by losses for European and U.S. equities on the back of a Portuguese financial crisis. Financials fell (Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) and National Australia Bank Ltd. (AU:NAB) (NAUBF) each down 0.3%, Commonwealth Bank of Australia (AU:CBA) (CBAUF) down 0.4%, and Macquarie Group Ltd. (AU:MQG) (MCQEF) down 0.7%), and the top miners fared especially poorly (Rio Tinto Ltd. (AU:RIO) (RIO) down 1.2%, Oz Minerals Ltd. (AU:OZL) (OZMLF) down 1.1%, though BHP Billiton Ltd. (AU:BHP) (BHP) off just 0.1%). And while Atlas Iron Ltd. (AU:AGO) beat its production guidance, and Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) missed its production guidance, both saw losses, with Atlas stock off 2.9% and Fortescue trading 1.6% lower. Among the gainers, Scentre Group
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) — Australia stocks enjoyed early Monday gains after an advance for commodities and U.S. stocks since the last session, with a relatively good reception for earnings. The S&P/ASX 200 (AU:XJO) improved by 0.4% to 5,376.30, with miners tracking gains in gold and copper. Rio Tinto Ltd. (AU:RIO) (RIO) added 1.3%, and Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) traded 1.1% higher, while gold miners Newcrest Mining Ltd. (AU:NCM) (NCMGF) and Kingsgate Consolidated Ltd. (AU:KCN) (KSKGF) rallied 2.2% and 4.7%, respectively. Banks rose after Wall Street shares climbed on Friday, with National Australia Bank Ltd. (AU:NAB) (NAUBF) up 1% and Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) adding 0.9%, though Commonwealth Bank of Australia (AU:CBA) (CBAUF) dropped 2.4% as it traded without rights to its latest dividend. Coal transport firm Aurizon Holdings Ltd. (AU:AZJ) (QRNNF) tacked on 2.1% as its fiscal first-half underlying profit increased 18%, though net profit f
- [By MARKETWATCH]
LOS ANGELES (MarketWatch) — Australian stocks started Monday trade higher, with the S&P/ASX 200 (AU:XJO) up 0.8% at 5,206.40 after a strong finish for Wall Street at the end of last week. Resource shares got a lift from gains for commodities prices since the previous trading session, with strong advances for gold and copper and a more than 2% rise for New York-traded crude-oil futures. Among the leading gainers, Rio Tinto Ltd. (AU:RIO) (RIO) added 1.2%, Oil Search Ltd. (AU:OSH) (OISHF) climbed 1.3%, and gold miners Newcrest Mining Ltd. (AU:NCM) (NCMGF) and Evolution Mining Ltd. (AU:EVN) (CAHPF) improved by 3.9% and 6.4%, respectively. The heavily weighted banking sector also enjoyed solid gains, with Commonwealth Bank of Australia (AU:CBA) (CBAUF) up 1%, Westpac Banking Corp. (AU:WBC) (WEBNF) trading 1.3% higher, and National Australia Bank Ltd. (AU:NAB) (NAUBF) rising 1.1% as the U.K.’s Sunday Times reported the lender is considering a £2 billion ($3.3 billion) float of its British operations, which the report said had dragged on NAB’s results in recent years.
Best Prefered Stocks To Own For 2015: Cobalt International Energy Inc (CIE)
Cobalt International Energy, Inc., incorporated on August 27, 2009, independent, oil-focused exploration and production company with a salt prospect inventory in the deepwater of the United States Gulf of Mexico and offshore Angola and Gabon in West Africa. The Company operates its business in two geographic segments: the U.S. Gulf of Mexico and West Africa. The Company’s oil-focused exploration efforts target subsalt Miocene and Inboard Lower Tertiary horizons in the deepwater U.S. Gulf of Mexico. As of December 31, 2012, it drilled as operator four exploratory wells in the deepwater U.S. Gulf of Mexico (North Platte #1, Ligurian #1 and #2, and Criollo #1) and participated as a non-operator in three exploratory wells (Heidelberg #1, Shenandoah #1 and Firefox #1) and three appraisal wells (Heidelberg #2, Heidelberg #3, and Shenandoah #2R). The Company’s oil-focused exploration efforts target pre-salt horizons on Blocks 9, 20 and 21 offshore Angola and the Diaba Block o ffshore Gabon.
U.S. Gulf of Mexico Segment
The Company’s oil-focused exploration efforts target subsalt Miocene and Inboard Lower Tertiary horizons in the deepwater U.S. Gulf of Mexico. It also has licensed approximately 78,000 line miles (125,530 kilometers) of 2-D pre-stack depth-migrated seismic data in the deepwater U.S. Gulf of Mexico. As of December 31, 2012, it owned working interests in 246 blocks within the deepwater U.S. Gulf of Mexico, representing approximately 1.4 million gross (0.7 million net) undeveloped acres. Most of its U.S. Gulf of Mexico blocks have a 10-year primary term.
The Ardennes #1 exploratory well will target a 3-way structure located in both Miocene and Inboard Lower Tertiary horizons located in Green Canyon blocks 895, 896 and 939, where it named operator and owns a 42% working interest. The Aegean #1 exploratory well will target a 3-way structure in Inboard Lower Tertiary horizons located in Keathley Ca nyon blocks 162, 163 and 207, where it named operator and ow! n a 37.5% working interest. It has 24% working interest in the Racer prospect and its partners include BHP Billiton Petroleum (Americas) Inc. (60%) and Total (16%). South Platte is a 3-way prospect targeting Inboard Lower Tertiary horizons located in Garden Banks blocks 1003 and 1004 and Keathley Canyon blocks 35 and 36, and owns 60% working interest. Its Baffin Bay is a 4-way prospect targeting Inboard Lower Tertiary horizons located in Garden Banks blocks 956 and 957, and owns 60% working interest.
The Company has one drilling rig, the Ensco 8503, that is performing drilling operations on its operated prospect portfolio in the deepwater U.S. Gulf of Mexico. It has one drilling rig, the Ensco 8503, that is performing drilling operations on its operated prospect portfolio in the deepwater U.S. Gulf of Mexico. On December 5, 2012, it announced an oil discovery at its North Platte prospect on Garden Banks block 959 in the deepwater U.S. Gulf of Mexico. The North P latte #1 exploratory well is located in approximately 4,400 feet of water and was drilled to a total depth of approximately 34,500 feet. It is a operator of North Platte and own a 60% working interest. Its Heidelberg #1 exploratory well is located in approximately 5,200 feet of water in Green Canyon block 859 within the Tahiti Basin Miocene trend. The Company’s Shenandoah #1 is located in approximately 5,750 feet of water in Walker Ridge block 52, was drilled to approximately 30,000 feet. On February 26, 2013, it announced that the Shenandoah #2R appraisal well had been drilled to a total depth of 31,400 feet in approximately 5,800 feet of water and 1.3 miles southwest of the Shenandoah #1 exploratory well.
West Africa Segment
As of December 31, 2012, the Company had drilled as operator one exploratory well on Block 21 offshore Angola (Cameia #1) and one appraisal well on Block 21 offshore Angola (Cameia #2). As of December 31, 2012, its working i nterests in Blocks 9, 20 and 21 offshore Angola and the Diab! a Block o! ffshore Gabon consisted of an aggregate 5,652,687 gross (1,840,581 net) undeveloped acres. It has a pre-salt prospect inventory offshore West Africa. This inventory includes dozens of prospects in various states of maturation on Blocks 9, 20 and 21 offshore Angola and the Diaba Block offshore Gabon. The Mavinga #1 exploratory well will target pre-salt horizons in Block 21 offshore Angola, where it named operator with a 40% working interest. The Lontra #1 exploratory well will target pre-salt horizons in Block 20, and owns 40% working interest. The Bicuar #1 exploratory well will target pre-salt horizons in Block 21 offshore Angola, and owns 40% working interest. The Idared #1 exploratory well will target pre-salt horizons in Block 20 offshore Angola. The Baleia #1 exploratory well will target pre-salt horizons in Block 20 offshore Angola, and owns 40% working interest. The Loengo #1 exploratory well will target pre-salt horizons in Block 9 offshore Angola. Its Diaman #1 expl oratory well owns 21.25% working interest. Its Diamon South #1 exploratory well will test pre-salt horizons on the Diaba block offshore Gabon, where Total Gabon is the named operator and we own a 21.25% working interest. The Company has two drilling rigs under contract to support its pre-salt exploratory drilling campaign offshore Angola: the Diamond Ocean Confidence and the Petroserv SSV Catarina. It has the right to use the Ocean Confidence to complete the DST on the lower reservoir penetrated by the Cameia #2 appraisal well and drill two additional wells, which will include its Mavinga #1 exploratory well and one additional well.
- [By Jonas Elmerraji]
Cobalt International Energy (CIE), on the other hand, hasn’t had such a good run in 2014. Shares of this oil exploration company are down 38% since the start of the year, sold off along with the rest of the energy sector as commodity prices have cratered. But long-suffering shareholders could be in store for a reprieve in CIE this fall. Here’s how to trade it:
CIE is forming a double bottom pattern, a bullish reversal setup that looks just like it sounds. The buy signal comes on a push through the peak that separates the two bottoms in CIE, up at the $12 level. In other words, if CIE can close above $12, then buying it becomes a high-probability trade again.
- [By Jayson Derrick]
Cobalt Energy (NYSE: CIE) provided an update on its Gulf of Mexico drilling operations. The company announced that its Aegean #1 exploratory well in Keathley Canyon Block 163 did not encounter commercial hydrocarbons and operations are underway to plug and abandon the wellbore. Shares hit new 52 week lows of $13.75 before closing at $14.84, down 5.24 percent.
Best Prefered Stocks To Own For 2015: SunOpta Inc (STKL)
SunOpta Inc. ( SunOpta), incorporated on January 1, 2008, is a global company operating businesses focused on a healthy products portfolio that promotes sustainable well-being. With expertise in field to table integration, it specializes in the sourcing, processing and packaging of natural, organic and specialty food products. The Company operates in two business segments: SunOpta Foods and Opta Minerals.
Its core natural and organic food operations focus on value-added grains, fiber and fruit-based product offerings, supported by a global sourcing and supply infrastructure. Its assets, operations and employees are principally located in North America and Europe. It has two non-core holdings: a 66.1% ownership position in Opta Minerals Inc. and its subsidiaries (Opta Minerals), a producer, distributor and recycler of industrial materials; and an 18.7% ownership position in Mascoma Corporation (Mascoma), a biofuels company.
SunOpta Foods operates in the natural, organic and specialty foods product sectors and utilizes a number of integrated business models to bring cost-effective and products to market. It believes these markets will continue to grow as consumers focus on health and wellness. SunOpta Foods consists of four operating segments: Grains and Foods Group, Ingredients Group, Consumer Products Group and International Foods Group .It focuses on three key go-to-market segments: raw materials, value-added ingredients and consumer-packaged products.
The Grains and Foods Group specializes in marketing organic, identity preserved (IP), and non-GMO grains, ingredients, packaged goods and processing services with a core focus on soybean, sunflower and corn products. The Grains and Foods Group works to ensure that it provides its customers with organic, non-GMO and IP specialty grains and seeds by serving as a grower’s supplier of seed; purchaser of the grower’s specialty crops; and processor and packager of a wide range of grains-! based ingredients and consumer-packaged products. It offers a variety of IP, non-GMO and organic seeds and whole grains including soy, corn and sunflower for food applications offering varieties with superior food , raw material sourcing and processing of soy based ingredients in liquid, spray-dried and roasted formats. It offers Grain-based ingredients which utilize non-GMO and organic soy, corn, sunflower and rice; specialty organic functional ingredients, including maltodextrins, tack blends, fiber products; flavor enhancing products, including snack coatings, cheese powders and flavor systems; an line of organic dairy ingredients; and organic soy and sunflower oils. It offers variety of packaged food products for retail and foodservice use and a full range of bulk grain-based animal feed and pet food products.
The Ingredients Group is focused primarily on fiber products and specialty fruit ingredients. It works closely with its customers to identify product formulation, cost and productivity opportunities aimed at transforming raw materials into value-added food ingredient solutions. It offers fibers and brans, including Canadian Harvest Oat Fiber, SunOpta Soy Fiber, SunOpta Rice Fiber, SunOpta Cellulose Fiber and SunOpta Pea Fiber brands of insoluble organic and conventional fiber products, Barley Balance soluble fiber, MultiFiber blends, value-added starch-based texturizers, and a number of custom processed ingredients. It offers SunOpta Specialty Starch products, including OptaGrade and OptaMist. OptaGrade is a natural, starch-based texturizing agent that is used commercially in a variety of dairy products including natural, imitation, and processed cheeses, sour cream, cream cheese, cottage cheese and yogurt. OptaMist is also a starch-based texturizing agent that improves the taste, texture and appearance of dairy products, yogurt, cheese products, and salad dressings.
The Consumer Products Group provides natu ral and organic consumer packaged food products to global fo! od manufa! cturers, distributors and supermarket chains with a variety of branded and private label products. The Consumer Products Group’s products include Conventional and organic beverage processing and re-sealable pouch filling solutions in a variety of product categories, including shelf stable and refrigerated juices, frozen fruits and vegetables, specialty beverages, vitamin waters, electrolyte waters, energy drinks, soups, baby food, and healthy fruit and vegetable based snacks in flexible pouches. It offers nutritious healthy snacks including natural and organic fruit based snacks in bar, twist, rope and bite size shapes, with the ability to add a variety of ingredients including fiber, plus a range of baked and extruded nutrition bars using a wide variety of ingredients including grains, proteins and other ingredients.
The International Foods Group includes European and North American based operations that source and supply raw material ingredients and t rade organic commodities. Its principal operations are located in Amsterdam, the Netherlands and Santa Cruz, California and comprise the global sourcing and supply operations of Tradin Organic, including a business in Dalian, China that supplies food grade organic soybeans, feed, organic sunflower kernels and other grains and distributes certain organic food products, as well as sourcing and processing operations in Ethiopia for organic and specialty coffees and organic and conventional sesame seeds. In addition, the International Foods Group is expanding its integrated processing capabilities with the construction of its value-added organic and specialty cocoa facility in the Netherlands.
SunOpta Foods is subject to a wide range of governmental regulations and policies in various countries and regions where it operates,including the
United States,Canada, the Netherlands, throughout the rest of the EU, China and Ethiopia. These laws, regulations and polici es are implemented, as applicable in each jurisdiction, on t! he nation! al, federal, state, provincial and local levels. For example, SunOpta Foods is affected by laws and regulations related to: seed, fertilizer and pesticides; the purchasing, harvesting, transportation and warehousing of grain and other products; the processing, packaging and sale of food, including wholesale operations; and product labelling and marketing, food safety and food defense. SunOpta Foods is also affected by government-sponsored price supports, acreage set aside programs and a number of environmental regulations.
Opta Minerals is a vertically integrated provider of custom process optimization solutions and supplier of industrial minerals and silica-free abrasives for use primarily in the steel, foundry, loose abrasive cleaning and municipal water filtration industries. Opta Minerals has offices and production and distribution facilities in Ontario, Quebec, Saskatchewan, Florida, Idaho, Indiana, Louisiana, Maryland, Michigan, New York, Ohio, South Carolina, Texas, Virginia and production locations in Europe in Kosice, Slovakia; Romans, France; and Ermsleben and Rodermark, Germany. Opta Minerals integration of its business acquisitions into its existing operations and financial management systems has created synergies that have increased revenues and profit margins. It has invested in improving plant equipment and infrastructure and has been able to reduce costs while growing production capabilities. It believes that Opta Minerals is well-positioned to expand current operations with modest capital expenditures.
Opta Minerals produces, manufactures, distributes and recycles industrial minerals, silica-free abrasives and specialty sands and other products and services to the foundry, steel, loose abrasive cleaning, roofing granule, marine/bridge cleaning, waterjet cutting, and municipal, recreational and industrial water filtration industries. Its principal product lines include: blends of industrial minerals used primarily in heavy industrial a! pplicatio! ns; silica-free abrasives,and specialty sands, filtration media and other products and services.
Opta Minerals sells industrial mineral products primarily to the foundry and steel industries. Industrial minerals products produced by Opta Minerals include chromites, magnesium blends, lime, nozzle sands, clays, coated sands, petroleum coke, crushed graphite, pre-cast refractory shapes, injection lances, and a wide range of foundry pre-mixes.
Opta Minerals abrasive products are primarily sold into shipbuilding, ship repair, bridge cleaning, waterjet cutting and roofing granule markets. The abrasives produced are free of silica, making them a clean, efficient and recyclable alternative to traditional abrasives. Recycling operations are conducted at Waterdown, Ontario, Norfolk, Virginia and Ermsleben, Germany. This is an important service that Opta Minerals provides to its customers which results in the reuse of materials that would otherwise be sent d irectly to landfills. Silica-free abrasive products produced by Opta Minerals include BlackBlast, Ultra Blast, EconoBlast, EbonyGrit, Powerblast, Galaxy Garnet, Emerald Creek Garnet, Bengal Bay Garnet and other specialty abrasives.
Opta Minerals also generates revenues from the sale of specialty sands, filtration media and other products and technical services. The silica sands are not sold for use as an abrasive material.Speciality sands and other products and services of Opta Minerals include filtration and industrial sands, garnets for filtration and waterjet cutting, construction sands, golf bunker sand, silica (not sold for loose abrasive applications), colored sand, waterjet cutting replacement parts and components, and technical services.
The industrial minerals industry is characterized by a number of public and private companies that service the bulk of requirements for both the foundry and steel industry. The remaining market requirements are fulfilled by small regionally based companies with limi! ted produ! ct lines that generally focus on local markets.
The silica-free abrasives industry is characterized by a number of regionally-based companies with limited product lines tending to focus on geographically adjacent markets. Their competition varies by product line, customer classification and geographic market. Opta Minerals conducts business throughout North America with a focus on key regions including the Quebec-Detroit corridor, New York, Maryland, Virginia, Georgia, Florida, Louisiana and Texas, all of which are areas of high volume ship repairs and bridge cleaning activities.
The Company competes with Vesuvius Group S.A./N.V., Stollberg Group, SKW Mettalurgie Gmbh, Magnesium Elektron and Prince Minerals.
- [By Jake L’Ecuyer]
Equities Trading UP
SunOpta (NASDAQ: STKL) shares shot up 12.89 percent to $12.70 after the company reported upbeat Q1 earnings.
Shares of Isis Pharmaceuticals (NASDAQ: ISIS) got a boost, shooting up 10.16 percent to $27.64 after the company reported positive Phase 2 data on ISIS-GCGR Rx in HbA1c in patients with type 2 diabetes.
- [By Lisa Levin]
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Best Prefered Stocks To Own For 2015: Acme United Corp (ACU)
Acme United Corporation, incorporated in 1882, is a worldwide supplier of cutting, measuring and safety products to the school, home, office, hardware and industrial markets. It markets and sells under five main brands – Westcott, Clauss, Camillus, PhysiciansCare and Pac-Kit. The Company has grouped its operations into three segments based on the Company’s geographical organization and structure: United States, which includes its Asian operations; Canada and Europe. On February 28, 2011, the Company purchased all of the assets of The Pac-Kit Safety Equipment Company, which is a manufacturer of first aid kits for the industrial, safety, transportation and marine markets. In June 2012, the Company acquired selected assets of The C-Thru Ruler Company. In August 2013, the Company purchased a manufacturing and distribution center in Rocky Mount, North Carolina.
The Company’s operations are in the United States, Canada, Europe (located in Germany) and Asia (located in Hong Kong and China). The operations in the United States, Canada and Europe are primarily engaged in product development, marketing, sales, administrative and distribution activities. The operations in Asia consist of sourcing, product development, production planning, quality control and sales activities.
Principal products within the cutting device category are scissors, shears, guillotine paper trimmers, rotary paper trimmers, rotary cutters, knives, hobby knives and blades, utility knives, pruners, loppers, saws, manicure products, medical cutting instruments and pencil sharpeners. During the year ended December 31, 2011, products introduced included an expanded line of heavy duty school and office iPoint pencil sharpeners. Other recent product introductions included Westcott TrimAir paper trimmers with patented titanium coating and a blade change system for rotary and personal trimmers, Westcott Ultra Soft Handle scissors with anti- microbial product protection, True Professional sewing shear! s, as well as a line of iPoint pencil sharpeners utilizing the Company’s non-stick coating. The Company also added to its KleenEarth family of recycled products by modifying the production process to allow for multi-colored products as opposed to the traditional black. During 2011, Clauss introduced the AirShoc line of titanium coated non stick garden tools.
Principal products within the measuring instrument category are rulers, and math tools. During 2011, product introductions included Westcott branded compasses, protractors, rulers and math kits with anti-microbial product protection.
Principal products within the safety product category are first aid kits, personal protection products and over-the-counter medication refills. The Company markets these products under the PhysiciansCare brand.
The Company competes with Fiskars Corporation, Helix International Ltd. and Johnson and Johnson.
- [By Bristol Voss]
Acme United (NYSE: ACU) is a global supplier of cutting, measuring and safety products to consumer and industrial markets. It has neatly tracked the S&P small-cap index and shown the least volatility of the three stocks. While its $43.7 million market cap is the lowest of the three, its nearly $14 share price is the highest. It has a forward P/E of 9.2, and its dividend yield is the best of the three at 2.3%. In its most recent quarter, Acme posted a 7% increase in net income and a 3% rise in earnings.