Emerging-market stocks rose, snapping a three-day drop, as ICICI (ICICIBC) Bank Ltd. jumped on speculation India’s opposition party will take over government. The rand sank amid the longest South African bond slide in 15 years.
The MSCI Emerging Markets Index advanced 0.3 percent to 999.13 at 10:27 a.m. in New York, after better-than-estimated U.S. data led it to briefly trim gains. India’s S&P BSE Sensex (SENSEX) jumped to a one-month high as ICICI surged 6.5 percent on bets a new government will enact policies to bolster economic growth and curb bad loans. Steelmaker Usinas Siderurgicas de Minas Gerais SA paced a rally in Brazil’s Ibovespa. The rand sank as foreign investors dumped South African bonds for an 11th day yesterday, according to JSE Ltd. data compiled by Bloomberg.
India’s stocks jumped as an exit poll showed the opposition Bharatiya Janata Party is set to win four of five state elections held in the past month. The U.S. expanded at a faster pace than initially reported and jobless claims unexpectedly fell, sparking bets the Federal Reserve will trim stimulus. The MSCI Emerging Markets Index has slid as much as 16 percent since May 22, when the Fed signaled its asset-buying program could be trimmed if the economy showed improvement.
Hot Dividend Stocks For 2015: PPL Corporation(PPL)
PPL Corporation, an energy and utility holding company, generates and sells electricity; and delivers natural gas to approximately 5.3 million utility customers primarily in the northeastern and northwestern U.S. The company operates in four segments: Kentucky Regulated, International Regulated, Pennsylvania Regulated, and Supply. The Kentucky Regulated segment engages in the generation, transmission, distribution, and sale of electricity; and the distribution and sale of natural gas to approximately 1.3 million customers in Kentucky, Virginia, and Tennessee. The International Regulated segment owns and operates electricity distribution businesses in the United Kingdom that deliver electricity to 7.7 million customers. The Pennsylvania Regulated segment delivers electricity to approximately 1.4 million customers in eastern and central Pennsylvania. The Supply segment owns and operates power plants to generate electricity using coal, uranium, natural gas, oil, and water res ources; markets and trades electricity and other purchased power to wholesale and retail markets; and acquires and develops domestic generation projects. It controls or owns a portfolio of generation assets of approximately 11,000 megawatts in Montana and Pennsylvania. As of December 31, 2010, the company?s distribution system included 649 substations with a capacity of 25 million kVA, 28,838 circuit miles of overhead lines, and 24,131 cable miles of underground conductors in the United Kingdom. It also operated 377 substations with a capacity of 31 million kVA, 33,122 circuit miles of overhead lines, and 7,368 cable miles of underground conductors in Pennsylvania. The company was founded in 1920 and is headquartered in Allentown, Pennsylvania.
- [By David Dittman]
PPL Corp (NYSE: PPL) announced on June 9, 2014, an agreement with Riverstone Holdings LLC to combine their merchant power generation assets to form stand-alone independent power producer Talen Energy Corp.
- [By Maria Armental and Anna Prior]
Standard & Poor’s Ratings Services and Fitch Ratings downgraded PPL Energy (PPL) after parent company PPL Corp. said it would spin off the power-generation business to its shareholders.
- [By Ben Levisohn]
The S&P 500, meanwhile, was hit by big losses in Exelon (EXC), Goodyear Tire & Rubber (GT) and PPL Corp (PPL). Exelon dropped 3.8% to $35.75 after the utility announced a secondary offering, while Goodyear fell 2.8% to $26.17. PPL Corp declined 2.8% to $33.72 after announcing that it plans to spin off its Montana power plants.
Hot Dividend Stocks For 2015: Cellcom Israel Ltd.(CEL)
Cellcom Israel Ltd. provides cellular communications services in Israel. It offers basic and advanced cellular telephone services, text and multimedia messaging services, and advanced cellular content and data services. The company?s basic cellular telephony services include voice mail, cellular fax, call waiting, call forwarding, caller identification, collect call, conference calling, ?Talk 2?, additional number services, and collect call services; and outbound and inbound roaming services. It also provides value-added services comprising Cellcom volume that includes downloadable content, such as music, games, on-net-reality programs, drama series, and video games; SMS and MMS services to send and receive text, photos, multimedia, and animation messages; access to third party application providers for notification of roadway speed detectors, mange vehicle fleets, and enable subscribers to manage and operate time clocks and various controllers for industrial, agricultural , and commercial purposes; video calls to communicate with each other through video applications; zone services for calls initiated from a specific location; location-based services; voice-based information services; text-based information services and interactive information services, including news headlines, sports results, and traffic and weather reports; and data services to access handsets, cellular modems, laptops, tablets, and cellular routers, as well as Internet based payment services. In addition, the company sells handsets, modems, routers, tablets, and laptops, as well as provides repair and replacement services; and offers landline telephony, transmission, and data services through its approximately 1,500 kilometers of inland fiber-optic infrastructure and complementary microwave links to selected business customers. As of March 31, 2011, it provided its services to approximately 3.395 million subscribers. The company was founded in 1994 and is headquartered i n Netanya, Israel.
- [By Rich Smith]
Cellcom Israel (NYSE: CEL ) is getting a new CFO.
Following the company’s successful merger with Netvision, current Chief Financial Officer Yaacov Heen is declaring his mission accomplished, and says he intends to resign his post on Sept. 17 after 16 years with the company. At that time, Cellcom says it will bring on Shlomi Fruhling, the former VP for strategy and finance at Netvision, to become the merged company’s new CFO on Sept. 18.
Hot Dividend Stocks For 2015: Pacific Gas & Electric Co.(PCG)
PG&E Corporation, through its subsidiaries, operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. The company also involves in the generation, procurement, transmission, and distribution of electricity; and procurement, transportation, storage, and distribution of natural gas. It owns and operates electricity generation facilities, transmission and distribution lines, and substations; and an integrated natural gas transportation, storage, and distribution system, as well as has underground natural gas storage fields in California. The company serves residential, commercial, industrial, agricultural, public street and highway lighting, and other electric utility customers. As of December 31, 2009, it served approximately 5.1 million electricity distribution customers and approximately 4.3 million natural gas distribution customers. The company also operated 18,650 circuit miles of intercon nected transmission lines and 141,213 circuit miles of distribution lines for electricity; and 42,142 miles of distribution pipelines, 6,438 miles of backbone and local transmission pipelines, and 3 storage facilities for natural gas. PG&E Corporation was founded in 1905 and is based in San Francisco, California.
- [By John Kell and Lauren Pollock var popups = dojo.query(“.socialByline .popC”); ]
Among the companies with shares expected to actively trade in Friday’s session are BlackBerry Ltd.(BB.T), PG&E Corp.(PCG) and Restoration Hardware Holdings Inc.(RH)
- [By Myra P. Saefong , Sital S. Patel]
PCG: PG&E Corp. (PCG) shares lost 4%. The utility said late Thursday that it expects the federal government to bring criminal charges against it over the fatal 2010 San Bruno, Calif. natural-gas transmission pipeline blast.
Hot Dividend Stocks For 2015: Public Storage(PSA)
Public Storage operates as a real estate investment trust (REIT). It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The company?s self-storage facilities offer storage spaces for lease on a month-to-month basis for personal and business use. Public Storage also has interests in commercial properties containing commercial and industrial rental space; facilities that lease storage containers; and ancillary operations, which include reinsurance of policies against losses to goods stored by its self-storage tenants, retail operations comprising merchandise sales and truck rental operations. As of December 31, 2008, the company had interests in 2,012 self-storage facilities with approximately 127 million net rentable square feet in 38 states; and 181 self-storage facilities with approximately 10 million net rentable square feet in 7 western European nations. It also had direct and indirect equity int erests in approximately 21 million net rentable square feet of commercial space located in 11 states in the U.S. As a REIT, the company would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. Public Storage was founded in 1971 and is based in Glendale, California.
- [By Susan J. Aluise]
Like all ETFs, REZ offers the diversification of a mutual fund, with low expenses and the advantages of trading on a major exchange just like a stock. REZ’s top holdings include multifamily REITs like AvalonBay (AVB), Equity Residential (EQR), Essex Property Trust (ESS) as well as Public Storage (PSA) common stock, which also benefits from the rental housing boom.
- [By Damian Illia]
Since 1973 Compuware Corp (CPWR) has been providing software solutions both on-premise and through a software as a service (SaaS) model, as well as professional technical services related to mobile application developments and mainframe systems. The company reported revenues of $944.5 million in fiscal 2013, working through four segments: Performance Management (APM), Mainframe, Changepoint and Uniface. Through the APM segment Compuware provides services to maximize efficiency of web, non-web, mobile, streaming and cloud applications. Mainframe solutions are designed for organizations which require high developer productivity and enhanced service quality at lower costs, and through Changepoint it provides Professional Services Automation (PSA) and Project Portfolio Management services (PPM). Uniface, a rapid application development platform, creates renews and integrates enterprise applications. Currently, more than 7,100 companies, including many of the world’s largest or ganizations, depend on Compuware and our new generation approach to performance management to do just that.
- [By Will Ashworth]
In my mind you can’t go wrong operating at the higher end of the customer food chain. Look for AHP to buy some interesting properties over the next year or two.
Pure-Play REITs: Public Storage (PSA)
PSA is the world’s largest owner and operator of self-storage facilities with over 1 million customers. As America’s preoccupation with owning stuff has grown exponentially in recent years, PSA’s business has come along for the ride.
- [By Lawrence Meyers]
I also like both Public Storage (PSA) and its Series T preferred stock.
As a result of the financial crisis, many people lost their homes. What happens when people get evicted from a house? They downsize. That’s one reason we’ve seen apartment REIT stock prices appreciate, but that’s also why Public Storage has done so well. You can’t fit a household’s worth of stuff into an apartment, so you rent storage for all those extra-large sofas. Housing remains troubled, and with people increasingly being moved into part-time jobs or leaving the workforce, this overall secular trend is continuing.
Hot Dividend Stocks For 2015: Cummins Inc.(CMI)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
- [By Peter Graham]
The Q2 2014 earnings report for Navistar International Corp (NYSE: NAV), a potential peer of light, medium- and heavy-duty truck or engine makers PACCAR Inc (NASDAQ: PCAR) and Cummins Inc (NYSE: CMI), is scheduled to report earnings after the market closes on Thursday. Aside from the Navistar International Corp earnings report, it should be said that PACCAR Inc and Cummins Inc both reported Q1 2014 earnings on April 29th (PCAR reported higher revenues and net income while CMI hit a 52-week high after a beat and raised guidance). However, Navistar International Corp has lost market share since 2012 when US regulators denied approval of a redesigned diesel engine that failed to reduce green house gas levels – forcing the company to turn to rival Cummins Inc to supply engines as it develops its own catalytic reduction engines to reduce nitrogen oxide emissions.
- [By Charles Mizrahi]
Cummins (CMI) was founded by chauffeur Clessie Cummins to improve on what he felt was an outdated and inefficient technology.
He began producing diesel engines for trucks in the 1920s, but manufacturers were reluctant to switch from gas to diesel. During WWII, the Cummins engine was used in cargo trucks. In the decade following the war, sales increased fivefold, cracking the $100 million mark in 1956.
- [By Ben Levisohn]
Shares of Navistar have dropped 4.1% to $31.89 at 2:02 p.m. today, while Oshkosh (OSK) has fallen 0.2% to $57.76 and Cummins (CMI) has gained 1.2% to $144.13.
Hot Dividend Stocks For 2015: 3M Company(MMM)
3M Company, together with subsidiaries, operates as a diversified technology company worldwide. The company?s Industrial and Transportation segment offers tapes, coated and non-woven abrasives, adhesives, specialty materials, filtration products, energy control products, closure systems for personal hygiene products, acoustic systems products, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles. Its Health Care segment provides medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. The company?s Display and Graphics offers optical film solutions for LCD electronic displays; computer screen filters; reflective sheeting for transportation safety; commercial graphics sheeting and systems; and mobile interactive solutions, includin g mobile display technology, visual systems products, and computer privacy filters. The company?s Consumer and Office segment provides office supply products, stationery products, construction and home improvement products, home care products, protective material products, certain consumer retail personal safety products, and consumer health care products. Its Safety, Security and Protection Services segment offers personal protection products, safety and security products, cleaning and protection products for commercial establishments, track and trace solutions, and roofing granules for asphalt shingles. The company?s Electro and Communications segment provides packaging and interconnection devices; fluids that are used in the manufacture of computer chips, and for cooling electronics and lubricating computer hard disk drives; high-temperature and display tapes; insulating materials, including tapes and resins; and related items. The company was founded in 1902 and is base d in St. Paul, Minnesota.
- [By Ben Levisohn]
3M (MMM) has outperformed Danaher (DHR) during the past six months. Does the way investors view how they deploy capital help explain the difference?
Nomura’s Shannon O’Callaghan and team don’t think the market gets how much 3M could benefit from better capital deployment:
Back in December, we upgraded 3M with a view that the company could take a more aggressive stance on capital allocation, and that has begun with $1.7B of share repurchase in each of the last two quarters, and an increase in debt. But, after recently spending a couple of days with management, there are several factors we view as underappreciated: 1) the driver of management’s plan to add debt is not to boost EPS with buyback (though that is a nice side effect) but rather to lower 3M’s cost of capital; 2) this suggests that the buyback won’t slow even if organic earnings surprise on the upside; and 3) another use of added debt is expected to be medium and larger acquisitions, which is a capability historically missing at 3M that could further benefit the P/E. We think 3M could be changing from a sleepy mid-single-digit EPS grower to a double-digit EPS grower with drivers of potential upside.
3M has gained 8.3% during the past six month, which suggests that the market has bought into 3M’s capital-deployment story. That hasn’t been the case with Danaher, which has risen just 0.3% during the same period. Morgan Stanley’s Nigel Coe and team wonder if the market thinks Danaher’s capital allocation model “is broken.” They explain:
With Danaher underperforming 3M and with its traditional P/E premium compressing from 15% to nothing, the market is clearly taking an overly bearish view that Danaher’s capital allocation model is broken. Note that Danaher now trades cheap on 2015 FCF, while 3M is the most expensive. In this light, we have to conclude that given the premium the market is paying for 3M