By Oliver Wack and Jorge Godoy Coy
BOGOTA – On June 15, Colombia holds a presidential election that could help end that country’s five-decade conflict with the Revolutionary Armed Forces of Colombia (FARC). Yet that contest may not be the most closely watched by energy companies with an interest in Colombia. On July 23, the Ronda Colombia 2014 will auction off 101 oil blocks; with leases that will come with attractive contract terms aimed at bolstering foreign direct investment and expanding the country’s usable reserves.
The oil blocks up for bidding include a mix of onshore and offshore deposits, conventional and unconventional resources, and frontier basins that require further exploration. A new report suggests it is unlikely that all the blocks will go, but those that do will come with 9 years of exploration and 30 years of production rights. Deep-water and unconventional sources will come with additional incentives to bring new reserves online. Part of this is motivated by the fact that Colombia’s production has increased 75% in in the last seven years. At the current rate, the country’s reserves won’t last beyond the end of the decade unless new sources are developed.
Hot Asian Companies To Invest In 2015: Cirrus Logic Inc.(CRUS)
Cirrus Logic, Inc., a fabless semiconductor company, develops high-precision analog and mixed-signal integrated circuits (ICs) for audio and energy markets worldwide. The company offers analog and mixed-signal audio converter and audio digital signal processor (DSP) products, which include analog-to-digital converters (ADCs); digital-to-analog converters (DACs); chips for integrating ADCs and DACs into an IC; digital interface ICs; volume controls; and digital amplifiers, as well as audio DSPs for consumer electronics applications. Its audio products are used in various consumer applications, including portable media players, smartphones, tablets, AVRs, DVD and Blu-ray disc players, home theater systems, set-top boxes, MP3 players, gaming devices, sound cards, and digital televisions; professional applications comprising digital mixing consoles, multitrack digital recorders, and effects processors; automotive applications consisting of amplifiers, satellite radio systems, telematics, and multi-speaker car-audio systems; and networked digital audio applications. The company also provides high-precision analog and mixed-signal ICs for energy control, energy measurement, and energy exploration applications; and ICs, board-level modules, and hybrids under the Apex Precision Power brand name for high-power pulse width modulation (PWM) and power amplifier applications; and proprietary products, which include ADCs, DACs, linear amplifiers, PWM amplifiers, and amplifier ICs; and system reference designs. Its energy products are used in digital utility meters, power supplies, lighting ballasts, motor control, energy exploration, and high-power systems. The company sells its products primarily to through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was founded in 1984 and is headquartered in Austin, Texas.
- [By Ashraf Eassa]
Cirrus Logic (NASDAQ: CRUS ) seems in many ways the anti-InvenSense (NYSE: INVN ) . While it seems that the sell-side perpetually raises expectations for the latter, claiming that this time InvenSense will win meaningful content share inside of next generation Apple (NASDAQ: AAPL ) products, longtime Apple supplier Cirrus Logic — which has a fair amount of content across Apple’s devices — seems to be the subject of analyst reports claiming that it has lost content over at Apple.
- [By Ashraf Eassa]
InvenSense is heavily dependent on Samsung
Anybody familiar with former hot chip play Cirrus Logic (NASDAQ: CRUS ) — a mixed signal/analog chip player that derives the majority of its revenue from Apple (NASDAQ: AAPL ) — knows all about the risks associated with having a business that is very concentrated on a few big customers. InvenSense is not unaware that its business, too, is concentrated within a number of large customer as indicated in the following from its most recent form 10-K filing:
- [By Rustic Nomad]
The present market situation for chipmaker Cirrus Logic (CRUS) doesn’t appear to be good. The company has lost its momentum and has been reporting upsetting results. The stock is declining and looks like a bad pick at present.
- [By Ben Eisen]
Chip-maker Cirrus Logic Inc. (CRUS) jumped 4.9% after its earnings report late Thursday. The company had a profit last quarter of 41 cents a share on revenue of $149.7 million, compared with a consensus estimate of 32 cents of $143 million. The semiconductor maker, which derives much of its revenue from Apple Inc. (AAPL) , has been gaining since the computer giant reported its results earlier in the week.
Hot Asian Companies To Invest In 2015: QUALCOMM Incorporated(QCOM)
QUALCOMM Incorporated engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. The company operates in four segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), Qualcomm Wireless and Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies code division multiple access (CDMA)-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products. The QTL segment grants licenses to use portions of its intellectual property portfolio comprising patent rights useful in the manufacture and sale of wireless products, such as products implementing cdmaOne, CDMA2000, WCDMA, CDMA TDD, GSM/GPRS/EDGE, and/or OFDMA standards and their derivatives The QWI segment consists of Qualcomm Internet Services that provides content enablement services for the wireless industry and pu sh-to-talk and other products and services for wireless network operators; Qualcomm Government Technologies, which offers development, hardware, and analytical services to the United States government agencies involving wireless communications technologies; Qualcomm Enterprise Services that provides satellite and terrestrial-based two-way data messaging, position reporting, wireless application services, and managed data services to transportation and logistics companies and other enterprise companies; and Firethorn, which builds and manages software applications that enable mobile commerce services. The QSI segment makes strategic investments to support the worldwide adoption of CDMA- and OFDMA-based technologies and services. QUALCOMM Incorporated primarily operates in China, South Korea, Taiwan, Japan, and the United States. The company was founded in 1985 and is based in San Diego, California.
- [By FinanceGuru]
Taking back control from Qualcomm Today, Qualcomm (QCOM) is the world’s leading cellular baseband development shop and holds the majority of the market. Qualcomm also happens to supply standalone cellular chips to Apple for the latter’s renowned iPhone and iPad product lines. While Qualcomm has been more or less the only choice for a leading-edge LTE baseband for several years, it would have been beneficial to Apple to have more than one supplier in the running — at the very least to keep prices under control.
- [By Ashraf Eassa]
I have long been interested in seeing Apple (NASDAQ: AAPL ) acquire cellular IP in order to integrate it into its custom-designed A-series of processors for the iPhone and iPad. Qualcomm (NASDAQ: QCOM ) — which supplies most of the world’s smartphone applications processors — provides many of Apple’s competitors (such as Samsung, HTC, and LG) with integrated processor and modem solutions, which means a potential efficiency edge over the Cupertino-based smartphone giant.
- [By FinanceGuru]
There have been a lot of rumors and a lot of alleged leaks about a higher-end Samsung (SSNLF) Galaxy S5 hitting the market soon. This version, dubbed the Galaxy S5 Prime, is said to sport 3GB of RAM (up from 2GB in the current S5) and a quad-HD (2560×1440) display, up from 1920×1080 on the pain S5. It is also said to sport either a next-generation Exynos processor coupled with an Intel XMM 7260 modem ora Qualcomm (QCOM) Snapdragon 805 paired presumably with the latest MDM9x35 modem from Qualcomm.
- [By Chris Neiger]
So how does this effect existing wireless bandwidth? For one, it could put a strain on existing cellular networks, which is why Qualcomm (NASDAQ: QCOM ) is backing a new long-range and low power Wi-Fi standard. Others think a completely new cellular network devoted exclusively to connected things is needed. Or, depending on whom you ask, there’s absolutely nothing to worry about at all.
Hot Asian Companies To Invest In 2015: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors’ Opinion:
- [By Ben Levisohn]
Shares of Procter & Gamble have dropped 3.2% during the past 12 months, lagging Unilever’s (UL) 2.5% rise, Colgate-Palmolive’s (CL) 8.7% advance and Kimberly-Clark’s (KMB) 3.1% gain.
- [By Kashafa Investment Research]
What works in P&G’s advantage is the fact that the company is already ahead of its peers in the emerging markets. As of 2012, P&G had sales of $33 billion in developing markets as compared to $24 billion for Unilever (UL) and $10 billion for Colgate (CL). This competitive edge over peers will sustain as P&G has product quality, innovation and has a significant marketing budget given its comfortable cash position.
Hot Asian Companies To Invest In 2015: Sturm Ruger & Company Inc. (RGR)
Sturm, Ruger & Company, Inc. engages in the design, manufacture, and sale of firearms in the United States. The company offers its products under the ?Ruger? name and trademark in four product categories, including single-shot, autoloading, bolt-action, and sporting rifles; over and under shotguns; rimfire autoloading and centerfire autoloading pistols; and single action and double action revolvers. It also manufactures and sells accessories and replacement parts for its firearms. In addition, the company produces and sells investment castings made from steel alloys. Sturm, Ruger & Company, Inc. sells its firearms through a network of selected licensed independent wholesale distributors; and markets investment castings through manufacturer?s representatives to commercial, sporting goods, and military sectors. The company was founded in 1948 and is based in Southport, Connecticut.
- [By Vinay Singh] company is engaged in the manufacture and sale of firearms in the United States.
It has $1.61 per share in cash, no debt and an expected EPS growth for the next 5 years of 11%. Analysts expect $3.8 in EPS for fiscal year 2013, and the current stock price is only 14.7 times that figure, compared to its peer average of 17 times.
It has an impressive EBITDA margin in the mid 20s and operating cash flow margin in the high teens. This has helped it generate impressive levels of free cash flows in recent years, and even when I look at the enterprise value implied by the current stock price, it’s only 8.3 times trailing EBITDA.
With a free cash flow margin around 10%, the company should be able to further increase its cash reserve by $2.50 per share next year. ** This will increase total cash to more than $4 per share! It’s no wonder the company issued a special dividend of $4.50 per share late last year, in addition to regular dividends.
Its quarterly dividend varies because the company pays a percentage of earnings, rather than a fixed dollar amount per share. The current quarterly dividend of $0.40 per share is approximately 40% of the net income. For all of 2012, it returned $111.5 million to shareholders through the payment of dividends.
I’m comfortable with a long-term revenue growth outlook of high single-digits on Sturm, Ruger. In the wake of recent scrutiny over firearm sales, some might call this estimate too high. That doesn’t bother me, and I’d only offer the following rebuttal – the market has always been a forward-looking entity willing to look past near-term troubles.
The aforesaid sales growth rate would speak to a potential long-term free cash flow growth rate in the mid-to-high teens, if not even higher. Discounting that back, it suggests a fair value of about $73.
L-3 Communications Holdings (LLL)
The company provides various security solutions in the United States and internationally.
- [By Dan Caplinger]
On Tuesday, Smith & Wesson Holding (NASDAQ: SWHC ) will release its quarterly report, and shareholders have been pleased to see continued share-price gains from the gunmaker. Yet along with rival Sturm, Ruger (NYSE: RGR ) , Smith & Wesson is in danger of seeing earnings top out, and many investors wonder whether the good times for the gun industry will last or whether the recent move from Alliant Techsystems (NYSE: ATK ) to spin off its firearms and sporting segment marks a high-water mark for Smith & Wesson and other gun manufacturers.
Hot Asian Companies To Invest In 2015: American Capital Ltd.(ACAS)
American Capital, Ltd. is a private equity and venture capital firm specializing in management and employee buyouts, mezzanine, acquisition, recapitalization, middle market, and growth capital investments. The firm seeks to invest in senior debt mezzanine and equity financing for buyouts of private equity firms and direct in private and public companies. It also invests in special situations and in government. In special situations, the firm invests in troubled situations and in distressed situations. In this area, it invests in acquisitions of true turnarounds, 363 auctions, portfolio add-ons, operationally challenged companies; financings in exit, ABL loans, second lien refinance, and direct lending to distressed companies. The firm invests in manufacturing, services, and distribution companies with a special focus on energy sector. In energy production sector, the firm invests in lower risk oil and gas exploration, production and development; natural gas liquids; coal m ining and coal-fired generation; uranium mining and nuclear-fired generation; wind-powered generation; and solar-powered generation. In energy transmission sector, the firm invests in oil and gas pipelines; LNG tankers and regasification facilities; and power transmission. In energy distribution sector, it targets propane distribution; gas distribution; electricity distribution. In energy services sector, the firm invests in oil and gas services and utility services. The firm also targets investments in companies that provide services or products to federal, state or local governments. It seeks to invest in information technology, human resources/benefit administration, outsourcing, transaction processing, engineering and construction, logistics, original equipment manufacturers ? homeland security and component, after market parts and supplies, and technology. It invests as lead or participative investor. The firm and its affiliates invest from $5 million to $300 million p e r company in North America and ?5 million ($6.92520 millio! n) to ?25 million ($34.6260 million) per company in Europe. American Capital, Ltd. was founded in 1986 and is based in Bethesda, Maryland with additional offices in United States, Europe, and Asia.
- [By Grass Hopper]
Examples of the first class of publicly ‐traded private equity firms include Kohlberg Kravis Roberts & Co. L.P. (KKR), The Blackstone Group L.P. (BX), and Oaktree Capital Group, LLC (OAK). Examples of the second class are Wendel SA (MF FP), Exor SpA (EXO IM) and, to some extent, Reinet Investments SCA (REI SJ). Examples of the third class are American Capital, Ltd. (ACAS), Main Street Capital, Gladstone Capital Corp. (MAIN), and Prospect Capital Corp. (PSEC).
- [By James Brumley]
The market’s starting to realize the selloff was an errant one, as DHI shares are perking up again. There’s still a ways to go before the stock’s back to where it started, though.
American Capital Ltd (ACAS)
12/2 Price: $15.29
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, private equity firm American Capital (NASDAQ: ACAS ) has earned a coveted five-star ranking.
Hot Asian Companies To Invest In 2015: Red Hat Inc.(RHT)
Red Hat, Inc. provides open source software solutions to enterprises worldwide. It also offers enterprise-ready open source operating system platforms. The company provides Red Hat Enterprise Linux, an operating system designed for enterprise computing; JBoss Enterprise Middleware that offers a suite of products for developing, deploying, integrating, and managing distributed, composite, and Web-based applications and services; and Red Hat Enterprise Virtualization for Servers, including Red Hat Enterprise Virtualization Hypervisor, a hypervisor based on KVM technology that converts the Red Hat Enterprise Linux kernel into a virtualization platform; and Red Hat Enterprise Virtualization Manager, a server virtualization management system, which provide capabilities for host and guest operating systems, such as availability, live migration, power manager, storage manager, and system scheduler. It also offers other Red Hat enterprise technologies, which comprise Red Hat MRG t hat integrates open and scalable messaging; Red Hat Developer, which provides integrated development environments and support for application developers; and Red Hat Directory Server that centralizes application settings, user profiles, group data, policies, and access control information into a network-based registry. In addition, the company offers Red Hat systems management solutions, such as RHN, RHN Satellite, Red Hat Customer Portal, and JBoss ON; and infrastructure enterprise technologies, including software development tools, clustering of systems and services, and directory services. Further, it provides consulting, training, and support services. The company sells its enterprise technologies through subscriptions. It has strategic alliances with Advanced Micro Devices, Inc.; and Intel Corporation. The company was formerly known as Red Hat Software, Inc. and changed its name to Red Hat, Inc. in June 1999. Red Hat, Inc. was founded in 1993 and is headquartered in Ra l eigh, North Carolina.
- [By Monica Gerson]
Red Hat (NYSE: RHT) reported upbeat results for the first quarter and lifted its full-year outlook. Red Hat shares surged 5.03% to $55.77 in the after-hours trading session.
- [By Monica Gerson]
Analysts are expecting Red Hat (NYSE: RHT) to have earned $0.33 per share on revenue of $413.98 million in the first quarter. Red Hat shares gained 0.51% to $52.70 in after-hours trading.
Hot Asian Companies To Invest In 2015: Tata Motors Ltd(TTM)
Tata Motors Limited, an automobile company, engages in the manufacture and sale of commercial and passenger vehicles primarily in India. The company offers cars, utility vehicles, trucks, buses and coaches, and defense vehicles, as well as develops electric and hybrid vehicles for personal and public transportation. It also involves in distributing and marketing cars; and financing the vehicles sold by the company. In addition, the company engages in the provision of engineering and automotive solutions, as well as machine tools and factory automation solutions; construction equipment manufacturing; automotive vehicle components manufacturing and supply chain activities; tooling and plastic and electronic components for automotive and computer applications; and automotive retailing and service operations. It offers its products and services through its dealership, sales, services, and spare parts network. The company also markets its commercial and passenger vehicles in Eu rope, Africa, the Middle East, South East Asia, South Asia, and South America. The company was formerly known as Tata Engineering and Locomotive Company Limited and changed its name to Tata Motors Limited in July 2003. Tata Motors Limited was founded in 1945 and is based in Mumbai, India.
- [By Paul Ausick]
Among car makers, the Cadillac brand from General Motors Co. (NYSE: GM), the Lincoln brand from Ford Motor Co. (NYSE: F), and Toyota Motor Corp.’s (NYSE: TM) Lexus brand make the list, as does Jaguar, which is owned by India’s Tata Motors Ltd. (NYSE: TTM).
- [By Sophia Yan]
Shares of Tata Motors (TTM) tumbled almost 5% in morning trading in Mumbai as investors reacted to news of Slym’s death. Tata Motors also owns Jaguar and Land Rover brands.
Hot Asian Companies To Invest In 2015: Pure Cycle Corporation(PCYO)
Pure Cycle Corporation, a vertically integrated water and wastewater service provider, engages in the design, construction, operation, and maintenance of water and wastewater systems in the Denver metropolitan area. The company contracts with landowners, developers, home builders, cities, and municipalities using a water portfolio consisting of surface and ground water supplies, surface and aquifer storage, and reclaimed water supplies. It withdraws, treats, stores, and delivers water to customers; collects, treats, stores, and reuses wastewater; and treats and delivers reclaimed water for irrigation use by customers. The company offers water services to approximately 258 single family equivalent (SFE) water connections, as well as 157 SFE wastewater connections located in southeastern metropolitan area of Denver. It has water assets in the Denver metropolitan area, Colorado; Arkansas River Valley in southern Colorado; and on the western slope of Colorado. The company was founded in 1976 and is based in Denver, Colorado.
- [By Garrett Cook]
On Wednesday, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Korea Electric Power (NYSE: KEP) and Pure Cycle (NASDAQ: PCYO).
- [By Jake L’Ecuyer]
Among the sector stocks, Pure Cycle (NASDAQ: PCYO) was down more than 1.3 percent, while Korea Electric Power (NYSE: KEP) tumbled around one percent.
- [By Jake L’Ecuyer]
Leading and Lagging Sectors
Friday morning, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Huaneng Power International (NYSE: HNP) and Pure Cycle (NASDAQ: PCYO). In trading on Friday, healthcare shares were relative laggards, down on the day by about 0.28 percent.
Hot Asian Companies To Invest In 2015: RSA Insurance Group PLC (RSA)
RSA Insurance Group plc is the holding company of the RSA group of companies whose principal activity is the transaction of personal and commercial general insurance business. The Company operates in four segments: Scandinavia, Canada, United Kingdom and Western Europe, and Emerging Markets. The Company provides insurance covers for a range of renewable energy technologies, including Wind Energy, which includes onshore and offshore facilities; Solar Energy, which includes photovoltaic, concentrated and thermal installations; Small Hydro, which includes power stations producing an output up to 50 megawatt, and Bio energy, which includes Biomass, Biogas and Waste to Energy plants. The Company works with both large and small brokers. The Company works with partners, such as building societies, banks, retailers, motor manufacturers, charities, utilities and unions to offer their customers appropriate insurance products. Advisors’ Opinion:
- [By Sofia Horta e Costa]
RSA Insurance Group Plc (RSA), which insures cars, homes and ships in the U.K., Scandinavia and emerging markets, rose 0.8 percent to 114.1 pence. Morgan Stanley raised its rating on the stock to overweight, the equivalent of a buy recommendation, from underweight.
- [By Sarah Jones]
RSA Insurance Group Plc (RSA) gained 0.8 percent to 114.1 pence after Morgan Stanley upgraded the insurer to overweight from underweight, saying the share price will benefit from a stronger prospective U.K. performance. The stock has declined 9.2 percent so far this year, while the FTSE 350 Insurance Index has rallied 10 percent.