Market volatility remained at the forefront last week, as the major indexes vacillated with a general down trend. While the Dow Jones Industrial Average did eke out a gain on Friday, the index is down 0.7% so far in January, compared to a loss of 0.5% for the S&P 500 and a gain of 0.5% for the Nasdaq.
Economic data was relatively positive on Friday with U.S. job openings reaching a five-year high, and December industrial production climbing more than forecast. Sectors of the S&P were mostly lower after a report showed that consumer confidence slipped more than expected. Treasurys gained ground (yields lower) and the dollar rose against major currencies.
Hot Net Payout Yield Companies To Own In Right Now: EXFO Inc (EXFO)
EXFO Inc. provides next-generation test and service assurance solutions for wireline and wireless network operators and equipment manufacturers in the global telecommunications industry. It offers field-test platforms, including FTB-1 platform, a single-slot modular platform to fiber-optic, copper, Ethernet, fiber-to-the-home, and multiservice testing applications; FTB-200 compact platform, which include singlemode and multimode optical time-domain reflectometers, automated optical loss test sets, SONET/SDH analyzers up to 10 Gbit/s, and gigabit Ethernet and 10 gigabit Ethernet testers; and FTB-500 platform for datacom testing, OTDR analysis, optical loss, and Ethernet testing. The company also provides wireless test equipment comprising 2G, 3G, and 4G/LTE protocol analyzers that allow engineers to troubleshoot networks in order to find the source of errors and fix them. In addition, it offers wireline/wireless service assurance systems, including Brix System that delivers end-to-end quality of service and experience visibility, as well as real-time Internet protocol service monitoring and verification for next-generation networks. Further, EXFO Inc. provides IQS-600 platform to run various 100 optical test modules using a single controller unit; high-performance test modules; PSO-200 optical modulation analyzer; protocol analyzers for use in protocol analysis to verify correct network behavior; network simulators for regression and load testing applications; and mobile communications intelligence tools for police, armed forces, and other governmental organizations to fight organized crime and terrorists. The company sells its products through its direct sales force, sales representatives, and distributors. EXFO Inc. was founded in 1985 and is headquartered in Quebec, Canada.
- [By Monica Gerson]
EXFO (NASDAQ: EXFO) is expected to post its Q4 earnings at $0.05 per share on revenue of $60.94 million.
Yum! Brands (NYSE: YUM) is estimated to post its Q3 earnings at $0.93 per share on revenue of $3.53 billion.
Hot Net Payout Yield Companies To Own In Right Now: NL Industries Inc (NL)
NL Industries, Inc. (NL) is a holding company. The Company operates in the component products industry through NL’s majority-owned subsidiary, CompX International Inc. The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. As of December 31, 2011, it owned 87% interest in CompX International Inc and 30% interest in Kronos Worldwide, Inc. The Company also owns 100% of EWI RE, Inc., an insurance brokerage and risk management services company. In July of 2011, CompX completed the acquisition of an ergonomic component products business.
Component Products-Compx International Inc.
Through the Company’s subsidiary, CompX, it manufactures components that are sold to a variety of industries including office furniture, recreational transportation (including boats), mailboxes, toolboxes, home appliances, banking equipment, vending equipment and computer-related equipment. CompX’s Security Products business, with one manufacturing facility in South Carolina and one in Illinois shared with the Marine Components business, manufactures mechanical and electronic cabinet locks and other locking mechanisms used in a variety of applications including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, high security medical cabinetry, electrical circuit panels, storage compartments and gas station security. These products include disc tumbler locks, pin tumbler locking mechanisms, and eLock and Stealthlock electronic locks.
CompX’s Furniture Components business, with facilities in Canada and Taiwan, manufactures a line of ball bearing slides and computer keyboard, monitor and central processing unit (CPU) support systems for use in applications, such as file cabinets, desks, computer server racks, wall mounted computer applications, home appliances, tool storage cabinets, imaging equipment, automated tell er machines and other applications. These products include I! ntegrated Slide Lock, Ball Lock, Self-Closing Slide, articulating computer keyboard support arms along with the LeverLock keyboard arm, CPU storage devices, flat panel computer monitor support systems and keyboard, monitor and CPU wall mounts.
CompX’s Marine Components business, with a facility in Wisconsin and a facility shared with the Security Products business in Illinois, manufactures and distributes stainless steel exhaust components, gauges, throttle controls, hardware and accessories primarily for performance and ski/wakeboard boats. These products include original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers and other exhaust components; gauges, such as global positioning system (GPS) speedometers and tachometers; controls, throttles, steering wheels and other billet aluminum accessories, and dash panels, light emitting diode (LED) lighting, rigging and other accessories. CompX operated five manufacturing facilit ies, as of December 31, 2011, including one facility in Grayslake, Illinois that housed operations relating to Security Products and Marine Components.
Chemicals-Kronos Worldwide, Inc.
Kronos is a global producer and marketer of titanium dioxide pigments (TiO2), a base industrial product used in a range of applications. Kronos, along with its distributors and agents, sells and provides technical services for NL’s products to over 4,000 customers in approximately 100 countries with the majority of sales in Europe and North America. TiO2 is a white inorganic pigment used in a range of products. Kronos offers customers a portfolio of products that include over 40 different TiO2 pigment grades. Kronos’ major customers include domestic and international paint, plastics, decorative laminate and paper manufacturers. Kronos ships TiO2 to customers in either a powder or slurry form via rail, truck or ocean carrier. Kronos and its agents and distributors pr imarily sell and provide technical services for Kronos’ pr! oducts in! three markets: coatings, plastics and paper.
Kronos’ TiO2 is also found in food products, such as candy and confectionaries and in pet foods. In pharmaceuticals, TiO2 is used commonly as a colorant in pill and capsule coatings, as well as in liquid medicines. Kronos owns and operates two ilmenite mines in Norway. Kronos manufactures and sells iron-based chemicals, which are co-products and processed co-products of the sulfate and chloride process TiO2 pigment production. These co-product chemicals are marketed through Kronos’ Ecochem division and are primarily used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as for the manufacture of iron pigments, cement and agricultural products. Kronos manufactures and sells titanium oxychloride and titanyl sulfate. Kronos produces TiO2 in two crystalline forms: rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate produc tion process, whereas anatase TiO2 is only produced using a sulfate production process.
The chloride process is a continuous process, in which chlorine is used to extract rutile TiO2. The sulfate process is a batch process, in which sulfuric acid is used to extract the TiO2 from ilmenite or titanium slag. Kronos operates four TiO2 plants in Europe, which includes one in each of Leverkusen, Germany; Nordenham, Germany; Langerbrugge, Belgium, and Fredrikstad, Norway. In North America, Kronos has a TiO2 plant in Varennes, Quebec, Canada. Kronos produced 550,000 metric tons of TiO, during the year ended December 31, 2011. Kronos and a subsidiary of Huntsman Corporation each hold a 50% interest in a manufacturing joint venture, Louisiana Pigment Company, L.P. (LPC). LPC owns and operates a chloride process TiO2 facility located in Lake Charles, Louisiana.
The Company competes with E.I. du Pont de Nemours & Co., National Titanium Dioxide Company Ltd., Hu ntsman Corporation, Tronox Incorporated and Sachtleben Chemi! e GmbH.! > Advisors’ Opinion:
- [By John Udovich]
Dallas billionaire Harold Simmons died over the weekend with investors sending shares of some of his publically traded companies like Valhi, Inc (NYSE: VHI), Kronos Worldwide, Inc (NYSE: KRO), NL Industries, Inc (NYSE: NL) and CompX International Inc (NYSEMKT: CIX)to higher levels as they anticipate changes – such as asset sales or spin offs. Harold Simmons was the embodiment of the American dream because he was born during the depths of the Great Depression in Golden, Texas to schoolteacher parents and he spent his early years living without indoor plumbing or electricity. However and by recognizing underpriced assets and through the use of massive amounts of leverage (e.g. junk bonds), he built an empire and ranked #40 on the 2013 Forbes 400 with a fortune estimated to be worth some $10 billion.
- [By Ben Levisohn]
Typically, when the chairman of a company dies, its shares drop. That hasn’t been the case for Valhi (VHI), Kronos Worldwide (KRO) and NL Industries (NL), which have all advanced today after Harold Simmons passed away.
Hot Net Payout Yield Companies To Own In Right Now: Granite Construction Inc (GVA)
Granite Construction Incorporated (Granite), incorporated on January 24, 1990, is a diversified heavy civil contractors and construction materials producers in the United States. The Company operates in four segments: Construction, Large Project Construction, Construction Materials and Real Estate. The Company operates nationwide, serving both public and private sector clients. Within the public sector, it primarily concentrates on heavy-civil infrastructure projects, including the construction of roads, highways, mass transit facilities, airport infrastructure, bridges, dams and other infrastructure related projects. Within the private sector, it performs site preparation and infrastructure services for residential development, commercial and industrial buildings, and other facilities. The Company owns and leases substantial aggregate reserves and own a number of construction materials processing plants. It also has contractor-owned heavy construction equipment fleets in the United States. In December 2012, it purchased 100% interest of Kenny Construction Company (Kenny).
Revenue from its Construction segment was approximately 47% of its total revenue during the year ended December 31, 2012. Revenue from its Construction segment is derived from both public and private sector clients. The Construction segment performs various heavy civil construction projects with a large portion of the work focused on new construction and improvement of streets, roads, highways, bridges, site work and other infrastructure projects. These are typically bid-build projects completed within two years.
Large Project Construction
Revenue from its Large Project Construction segment was 41.4% of its total revenue in 2012. The Large Project Construction segment focuses on large, complex infrastructure projects, which typically have a longer duration than its Construction segment work. These projects in clude major highways, mass transit facilities, bridges, tunn! els, waterway locks and dams, pipelines, canals and airport infrastructure. This segment primarily includes bid-build, design-build and construction management/general contractor contracts. It participates in joint ventures with other construction companies mainly on projects in its Large Project Construction segment. Joint ventures are typically used for large, technically complex projects, including design/build projects, where it is desirable to share risk and resources. Joint venture partners typically provide independently prepared estimates, shared financing and equipment and often bring local knowledge and expertise.
The Company also utilizes the design/build and construction management/general contract methods of project delivery. Under the construction management/general contract method of delivery, it contracts with owners to manage the design phase of the contract with the understanding that it will negotiate a contract on the construction phase when the design nears completion. Revenue from design/build and construction management/general contract projects represented 74.5% of Large Project Construction revenue in 2012.
Revenue from its Construction Materials segment was 11.1% of its total revenue in 2012. The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties. It has aggregate reserves that it has acquired by ownership in fee or through long-term leases. Aggregate products used in its construction projects represented approximately 42.7% of its tons sold during 2012.
Granite Land Company (GLC) is an investor in a diversified portfolio of land assets and provides real estate services for other Granite operations. GLC’s investment portfolio consists of residential, as well as retail and office site development projects fo r sale to home and commercial property developers. The range! of its i! nvolvement in an individual project may vary from passive investment to management of land use rights, development, construction, leasing and eventual sale of the project. Generally, GLC has teamed with partners who have local knowledge and expertise in the development of each property. GLC’s investments are located in Washington, California and Texas. Revenue from GLC was 0.2% of its total revenue in 2012.
- [By Louis Navellier]
If we look at the sector using Portfolio Grader, we see that many of the big names in the group like Flour (FLR), Granite Construction (GVA) and KBR incorporated (KBR) are rated “sell.” The anticipated spending for both government and private industry simply hasn’t materialized, and the companies are not seeing revenue or profit growth.
- [By Wallace Witkowski]
Some of the companies most dependent on government for revenue are Harris Corp. (HRS) with 80% of revenue government-derived; Granite Construction Inc. (GVA) with 58%; Flir Systems Inc. (FLIR) with 54%; and Waste Management Inc. (WM) and Republic Services Inc. (RSG) both with 50%, according to Goldman Sachs.
Hot Net Payout Yield Companies To Own In Right Now: Western Refining Logistics LP (WNRL)
Western Refining Logistics, LP, incorporated on July 17, 2013, owns, operates, develops, and acquires terminals, storage tanks, pipelines, and other logistics assets. As of December 31, 2012, the Company’s assets includes pipeline and gathering assets and terminalling, transportation, and storage assets in the Southwestern portion of the United States, which included approximately 300 miles of pipelines and approximately 7.9 million barrels of active storage capacity, as well as other assets. The Company’s assets are integral to the operations of Western’s refineries located in El Paso, Texas, and near Gallup, New Mexico.
As of December 31, 2012, the Company owns and operates two refineries, in El Paso, Texas and Gallup, New Mexico, with a total crude oil throughput capacity of 153,000 barrels per day (bpd). The Company does not take ownership of the hydrocarbons or products (other than certain additives) that it handles or engages in the trading of any co mmodities.
- [By Robert Rapier]
Western Refining Logistics (NYSE: WNRL) debuted on Oct. 10. The partnership was formed by Western Refining (NYSE: WNR) to own, operate, develop and acquire terminals, storage tanks, pipelines, and other logistics assets. WNRL’s assets include 300 miles of crude oil pipelines, gathering systems, and 566,000 barrels of crude oil storage located primarily in the Permian Basin. Most of its revenue is expected to be derived from two 10-year, fee-based agreements with Western Refining.
- [By Aimee Duffy]
It;s been a very robust year for master limited partnership IPOs to say the least. On Thursday, Western Refining (NYSE: WNR ) successfully spun off its midstream logistics MLP, Western Refining Logistics (NYSE: WNRL ) . The partnership became the 14th MLP to make its debut this year.
Hot Net Payout Yield Companies To Own In Right Now: GASFRAC Energy Services Inc (GFS)
GASFRAC Energy Services Inc. (GASFRAC) is an oil and gas service company, whose business is to provide liquid petroleum gas (LPG) fracturing services to oil and gas companies in Canada and the United States of America. As of December 31, 2011, GASFRAC had three 32 tons and nine 100 tons sand storage vessels, 47 fracturing pumpers, 150 LPG storage tanks and related equipment. GASFRAC’s services are marketed and operated under the name of its wholly owned subsidiary GASFRAC Energy Services Limited Partnership. The Company has commercialized the use of LPG as the fracturing fluid. The Company’s subsidiaries include GASFRAC Services GP Inc., GASFRAC US Holdings Inc., GASFRAC Inc., GASFRAC Energy Services (US) Inc. and GASFRAC Luxembourg S.a.r.l. Advisors’ Opinion:
- [By Sarah Jones]
G4S Plc (GFS) sank 15 percent to 260 pence. The security company reported a lower operating margin for the first quarter, citing challenging economic and trading conditions in continental Europe. It expects the margin trend to continue for the full year.
- [By Sofia Horta e Costa]
G4S Plc (GFS) dropped 1.7 percent to 225.6 pence. Goldman Sachs Group Inc. reiterated its “conviction sell” recommendation on the provider of security services, citing continued pressure on its profit margin in the second quarter.
Hot Net Payout Yield Companies To Own In Right Now: Clariant AG (CLN)
Clariant AG is a Switzerland-based holding company engaged in the chemical sector. The Company’s key markets include Paints, comprising decorative interior and exterior, primers, varnishes, anticorrosion and industrial applications, Construction, comprising concrete applications, roofing, tiling, sealants and primers, Adhesives, comprising wood, paper, lamination, packaging and Pressure Sensitive Adhesives, and Textile, leather and paper, comprising various functional effects and coatings. The Company diversifies its business into several units, including Additives, Catalysis & Energy, Emulsions, Functional Materials, Industrial & Consumer Specialties, Leather Services, Masterbatches, Oil & Mining Services, Paper Specialties, Pigments and Textile Chemicals. In every business unit, the Company diversifies five geographical regions, including Europe, Latin America, North America, Asia/Pacific, and Middle East & Africa. In January 2014, it sold its Detergents & Intermediates bus iness. Advisors’ Opinion:
- [By Tom Stoukas]
Clariant slid 1.6 percent to 15.57 francs, dropping for a seventh day. UBS removed the company from its most preferred list because of the shares’ recent rally. Clariant (CLN) has surged 26 percent this year, while the SPI has gained 21 percent.