Billionaire Nicholas Schorsch and other managers at RCS Capital Corp. (RCAP) know how to get mergers and acquisitions done before the long Martin Luther King Day weekend.
The group announced plans to buy the independent broker-dealer J.P. Turner of Atlanta for $27 million, one day after reporting plans to buy Cetera Financial Group for $1.15 billion.
J.P. Turner has about 400 financial advisors and 50 insurance agents, according to the latest Investment Advisor survey, vs. 6,600 advisors at Cetera.
The deal “represents another important step in realizing RCAP’s strategic vision to become the leading financial-services firm focused on the direct-investment sector,” Schorsch, who is executive chairman of RCAP, said in the statement.
Industry observers generally agree, but point out such growth does involve some conflicting business interests that can get “tricky” at times.
“This reminds me of a quote from Eric Schwartz, chairman and CEO of Cambridge Investment Research,” said recruiter Jonathan Henschen, in an interview with ThinkAdvisor.
Hot Oil Service Companies To Buy Right Now: Rising India Inc (RSII)
Rising India, Inc., incorporated on April 29, 1998, is a holding company. The Company is engaged in the developing independent living, assisted living and memory center communities. In May of 2013 Rising India, Inc. has acquired ownership of Mayer Luce Corp.
Rising India has researched acquisition and land-banking opportunities throughout Southern California based on new home developers like: D.R. Horton, Lennar, Ryland Homes, Standard Pacific and many others left fully entitled, development projects and planned communities vacant, unsold and basically guarded by private security services. These projects are in demand due to the Baby Boomers.
- [By Peter Graham]
Small cap stocks Drinks Americas Holdings, Ltd (OTCMKTS: DKAM), 7 Star Entertainment Inc (OTCMKTS: SAEE), Rising India Inc (OTCMKTS: RSII) and Big Tree Group Inc (OTCMKTS: BIGG) have all been attracting attention thanks to paid promotions. Of course, there is nothing wrong with properly disclosed and paid for promotions or investor relation activities, but they can backfire on unwary investors and traders alike. So are stock promoters blowing a bunch of hot air regarding these four small cap stocks or are they actually potential winners? Here is a quick reality check to help you decide:
- [By Peter Graham]
Small cap stocks Rising India Inc (OTCMKTS: RSII), Innocap, Inc (OTCBB: INNO) and Amplitech Group Inc (OTCBB: AMPG) have all been the subject of recent paid for promotions or investor relation campaigns. And while there is nothing wrong with properly disclosed promotions, investors who aren’t traders and are looking for a long term investment need to be careful. With that said, do these three small caps have what it takes to succeed for the long haul? Here is a quick reality check before you jump in:
Hot Oil Service Companies To Buy Right Now: Ashford Hospitality Trust Inc (AHT)
Ashford Hospitality Trust, Inc. is a publicly owned real estate investment trust. The firm engages in investment and management of properties in the hospitality industry. It invests in the real estate markets of the United States. The firm primarily invests in hotels with a focus on the ownership of upper-upscale and upscale full-service and select service hotels in primary, secondary and resort markets. It also invests in mid-scale and luxury hotels. The firm invests across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans, construction loans, and sale-leaseback transactions. It primarily concentrates among Marriott, Hilton, Hyatt, and Starwood brands. Ashford Hospitality Trust, Inc. was founded in 1968 and is based in Dallas, Texas.
- [By Lawrence Meyers]
A classic example was the preferred shares of Ashford Hospitality Trust (AHT) during the financial crisis. The D series, for example, fell under $7. An astute investor would have recognized the company was in far better shape than its peers, bought the preferred stocks at that price and seen a huge capital gain appreciation.
- [By Jake L’Ecuyer]
Ashford Hospitality Trust (NYSE: AHT) was down, falling 5.80 percent to $10.55 after the company priced 7.5 million shares at $10.70 per share.
In commodity news, oil traded up 0.01 percent to $102.57, while gold traded down 0.48 percent to $1,302.80.
- [By Monica Gerson]
Ashford Hospitality Trust (NYSE: AHT) shares declined 5.45% to $10.59 after the company priced 7.5 million shares at $10.70 per share.
Walter Energy (NYSE: WLT) fell 4.55% to $7.97 after UBS downgraded the stock from Neutral to Sell.
- [By Will Ashworth]
It seems there are two price points that win in this world: high and low. Ashford Hospitality Trust (AHT) came to the conclusion that its revenue per available room (RevPAR) of $102 was primarily from middle-of-the-road hotels. Nice, but generally inexpensive. The eight hotels it rolled into Ashford Hospitality Prime (AHP) are of a higher price point, averaging a RevPAR of $145 — double the national average. Investors would easily see the difference between the two portfolios, making both stocks more attractive.
Hot Oil Service Companies To Buy Right Now: Tokyo Electron Ltd (TOELY.PK)
Tokyo Electron Limited is a company mainly engaged in the manufacture and sale of electronic products for industrial uses. The Semiconductor Manufacturing Equipment, Flat-panel Display (FPD) and Photovoltaic Cell (PV) Manufacturing Equipment segment provides coaters and developers for wafer processing, plasma etching equipment, thermal processing systems, single wafer deposition systems, cleaning systems, coaters and developers for FPD manufacturing, ashing devices and plasma chemical vapor deposition (CVD) devices. The Electronic Component and Information Communication Equipment segment designs, develops, purchases and sells semiconductor products such as integrated circuits (ICs), computer and network equipment and software. The Others segment involves in logistics, facility management and insurance businesses. On April 1, 2013, it merged with two subsidiaries. In January 2014, the Company established TEL-Applied Holdings B.V. and a Japan-based company. Advisors’ Opinion:
- [By Stephen Simpson, CFA]
Ultratech isn’t the only game in town, though, and there are multiple technologies and process steps that are going to play significant roles in the production of FinFETs and 3D circuits. With that, I would take a look at Mattson Technologies (MTSN), as this company has already accomplished the not-so-easy task of gaining meaningful share in the dry strip, rapid thermal processing (RTP), and etch markets despite competing with giants like Lam Research (LRCX), Applied Materials (AMAT), and Tokyo Electron (TOELY.PK).
Hot Oil Service Companies To Buy Right Now: BorgWarner (BWA)
BorgWarner Inc., incorporated in 1987, is a global supplier of engineered automotive systems and components primarily for powertrain applications. The Company’s products are manufactured and sold worldwide, primarily to original equipment manufacturers (OEMs) of light vehicles (passenger cars, sport-utility vehicles (SUVs), vans and light-trucks). The Company’s products are also sold to other OEMs of commercial vehicles (medium-duty trucks, heavy-duty trucks and buses) and off-highway vehicles (agricultural and construction machinery and marine applications). It also manufactures and sells its products to certain Tier One vehicle systems suppliers and into the aftermarket for light, commercial and off-highway vehicles. On January 31, 2011, the Company acquired 100% of the stock of Haldex Traction Holding AB (Haldex Traction Systems) of Haldex Group. In July 2012, the Company sold its spark plug business to Federal-Mogul Corporation. The Company operates manufacturing facilities serving customers in the Americas, Europe and Asia, and is an original equipment supplier to every automotive OEM in the world. As of December 31, 2011, the Company had 10 joint ventures in which it had a less-than-100% ownership interest. Engine Engine Group products include turbochargers, emissions systems, timing devices and chain products, thermal systems, diesel cold start, gasoline ignition technology and cabin heaters. The Engine Group provides turbochargers for light, commercial and off-highway applications for diesel and gasoline engine manufacturers in the Americas, Europe and Asia. As of December 31, 2011, the Company supplied light-vehicle turbochargers to many OEMs, including Volkswagen, Renault, PSA, Daimler, Hyundai, Fiat, BMW, Ford and General Motors. The Company also supplies commercial vehicle turbochargers to Daimler, Navistar, Deutz and MAN and off-highway turbochargers to Caterpillar and John Deere. The Company’s newest turbocharger technologies are its regulated two-stage turbocharging system, R2S, variable turbine geometry (VTG) turbochargers and turbochargers for gasoline direct injected engines, all of which may be found in numerous applications worldwide. Also, the Company supplies VTG turboc hargers to Renault’s 1.6 liter R9M diesel engine featured in the Megane Scenic. The Engine Group also designs and manufactures products to control emissions. These products include electric air pumps, turbo actuators using integrated electronics to control turbocharger speed and pressure ratio and exhaust gas recirculation (EGR) coolers, tubes and valves for gasoline and diesel applications. The Engine Group’s timing devices and chain products include timing chain and timing drive systems, variable cam timing (VCT) systems, crankshaft and camshaft sprockets, tensioners, guides and snubbers, HY-VO front-wheel drive (FWD) transmission chain and four-wheel drive (4WD) chain and MORSE GEMINI chain systems for light vehicles. It is a manufacturer of timing chain systems to OEMs worldwide. BorgWarner timing chain systems are featured on Ford’s family of engines, including the Duratec, Modular, and in-line four-cylinder engines, Chrysler’s 3.6 liter Pentastar engine, Volkswagen’s EA888 family, Hyundai’s Gamma, Nu and Theta families and other applications worldw ide. The Engine Group’s newest chain product technology is its VCT with mid position lock. The Company is a manufacturer of chain for FWD transmissions and 4WD transfer cases. Its HY-VO chain is used to transfer power from the engine to the drivetrain. The chain in a transfer case distributes power between a vehicle’s front and rear output shafts which, in turn, provide torque to the front and rear wheels. The Company is a global provider of engine thermal solutions for truck, agricultural and off-highway applications. The Engine Group designs, manufactures and markets viscous fan drives that control fans to sense and respond to multiple cooling requirements. The Engine Group also manufactures and markets polymer fans for engine cooling systems. The Company is a global automotive supplier of diesel cold start technology (glow plugs and instant starting systems), including its Pressure Sensor Glow Plug, which monitors and enhances the combustion process of a diesel engine, minimizing carbon dioxide (CO2) and nitrogen oxide (NOx) emissions. The Company also designs and manufactures gasoline ignition technology (ignition coils) and electronic control units and sensor technology (diesel cabin heaters and selected sensors). Drivetrain The Drivetrain Group’s products are transmission components and systems, and all-wheel drive (AWD) torque management systems. The Drivetrain Group designs and manufactures automatic transmission components and modules and is a supplier to virtually every automatic transmission manufacturer in the world for conventional automatic, new dual-clutch transmissions (DCT) and automated manual transmissions. Friction and mechanical products include dual clutch modules, friction clutch modules, friction plates, transmission bands, torque converter clutches, one-way clutches and torsional vibration dampers. Controls products feature electro-hydraulic solenoids for high pressure hydraulic systems, transmission solenoid modules and dual clutch control modules. The Company’s 50%-owned joint venture in Japan, NSK-Warner Kabushiki Kaisha (NSK-Warner), is a producer of friction plates and one-way clutches in Japan. The Drivetrain Group’s torque management products include rear-wheel drive (RWD)/AWD transfer case systems, FWD/AWD electromagnetic coupling systems and advanced products. Transfer cases are installed primarily on light-trucks, SUVs, RWD based cross-over utility vehicles (CUVs) and passenger cars. The Company is engaged in the AWD market for FWD based vehicles with electromagnetic couplings that use electronically controlled clutches to distribute power to the rear wheels instantly as traction is required. As of December 31, 2011, the Company supplied its eGearDrive single-speed gearbox to the Ford Transit Connect Electric. It is engaged with traditional and non-traditional OEMs on a number of other transmission programs for plug-in hybrid and electric vehicles. The Company competes with Mitsubishi Heavy Industries (MHI), Modine, Valeo, Schaeffler Group, Tsubaki Group, Usui, NGK, Sensata, Honeywell, IHI, Behr, Pierburg, Denso, Iwis, Horton/Sachs, Bosch, Eberspacher Catem, GKN Driveline, JTEKT, Magna Powertrain, Dynax and Unick. Advisors’ Opinion:
- [By Jonas Elmerraji]
The automotive industry has fared well this past year, turning out the best sales numbers in a decade, as consumers replace a fleet that’s older on average than ever before. That brisk sales pace has been a big tailwind for parts suppliers such as BorgWarner (BWA). Even if you’re not familiar with the BorgWarner name, there’s a good chance that your car is on the road today because of this $13 billion tier-1 parts supplier — the firm makes engine and drivetrain components like turbochargers, timing belts, and transmissions for a huge group of automakers.
BorgWarner boasts a big customer list that includes the likes of Volkswagen, Ford, Daimler, and GM. The emphasis on increased efficiency without sacrificing performance has been a boost for BWA — it’s one of the reasons why the market for turbochargers has grown at brisk rates, and it’s helped user in the adoption of diesel cars here in the U.S. Like any tier-1 auto supplier, BorgWarner benefits by locked-in customers; since automakers rely on BWA to produce specific parts for specific vehicles, switching costs are extremely high if Ford or Volkswagen decide to switch suppliers. And OEMs aren’t likely to switch in the first place, since BWA’s enormous scale means that it can produce quality parts more cheaply than most.
From a financial standpoint, BorgWarner is in solid shape, with a $1.4 billion cash and investment balance more than offsetting the firm’s $1.2 billion debt load. The parts business is capital intense, but BWA has been a great capital allocator, keeping balance sheet leverage at zero. Look for a possible upside catalyst at BWA’s next earnings call this coming month.
- [By Neil Macneale]
The third-ranked stock based on our screen methodology was Borg Warner (BWA), a company that had already made an appearance in the 2-for-1 portfolio, back in 2004-06.
Hot Oil Service Companies To Buy Right Now: ARM Holdings PLC (ARMH)
ARM Holdings plc (ARM), incorporated on October 16, 1990, designs microprocessors, physical intellectual property (IP) and related technology and software, and sells development tools. As of December 31, 2012, the Company operated in three business segments: the Processor Division (PD), the Physical IP Division (PIPD) and the System Design Division (SDD). ARM licenses and sells its technology and products to international electronics companies, which in turn manufacture, markets and sells microprocessors, application-specific integrated circuits (ASICs) and application-specific standard processors (ASSPs) based on ARM’s technology to systems companies for incorporation into a range of end products. It also licenses and sells development tools directly to systems companies and provides support services to its licensees, systems companies and other systems designers.
ARM processor architecture and physical IP is used in embedded microprocessor applications, i ncluding cellular phones, digital televisions, mobile computers and personal computer peripherals, smart cards and microcontrollers. ARM’s principal geographic markets are Europe, the United States and Asia Pacific. ARM’s product offering includes microprocessor Cores: RISC microprocessor cores, including specific functions, such as video and graphics IP and on-chip fabric IP; embedded software; physical IP; development tools, and support and maintenance services.
The PD encompasses those resources that are centered on microprocessor cores, including specific functions, such as graphics IP, fabric IP, embedded software IP and configurable digital signal processing (DSP) IP. Service revenues consist of design consulting services and revenues from support, maintenance and training.
Physical IP Division
The PIPD is focused on building blocks for translation of a circuit design into actual silicon. Durin g the year ended December 31, 2012, the Company’s total av! erage PIPD headcount was 557. ARM is a provider of physical IP components for the design and manufacture of integrated circuits, including systems-on-chip (SoCs). ARM Artisan physical IP products include embedded memory, standard cell and input/output components. Artisan physical IP also includes a limited portfolio of analog and mixed-signal products. ARM’s physical IP components are developed for a range of process geometries ranging from 20 nanometer – 250 nanometer. ARM licenses its products to customers for the design and manufacture of integrated circuits used in complex, high-volume applications, such as portable computing devices, communication systems, cellular phones, microcontrollers, consumer multimedia products, automotive electronics, personal computers and workstations and many others.
ARM’s embedded memory components include random access memories, read only memories and register files. These memories are provided in the form of a configurabl e memory compiler, which allows the customer to generate the appropriate configuration for the given application. ARM’s memory components include many configurable features, such as power-down modes, low-voltage data retention and fully static operation, as well as different transistor options to trade off performance and power. In addition, ARM’s memory components include built-in test interfaces that support the industry test methodologies and tools. ARM memory components also offer redundant storage elements.
ARM’s memory components are designed to enable the chip designer maximum flexibility to achieve the optimum power, performance, and density trade-off. ARM offers standard cell components that are optimized for high performance, high density or ultra high density. ARM logic products deliver optimal performance, power and area when building ARM Processors, Graphics, Video and Fabric IP along with general SoC subsystem implementation. ARM delivers phy sical interface for a range of DDR SDRAM (double-data rate s! ynchronou! s dynamic random-access memory) applications ranging from mission critical applications to low-power memory sub-systems. Silicon on Insulator (SOI) products is an alternative methodology to traditional semiconductor fabrication techniques.
System Design Division
The SDD is focused on the tools and models used to create and debug software and system-on-chip (SoC) designs. ARM’s software development tools help a software design engineer deliver products right the first time. Engineers use these tools in the design and deployment of code, from applications running on open operating systems right through to low-level firmware. The ARM Development Studio is a hardware components that allow the software designer to connect to a real target system and control the system for the purposes of finding errors in the software. The ARM DSTREAM unit allows the software developer to control the software running on the prototype product and examine the internal st ate of the prototype product. ARM Development Boards are ideal systems for prototyping ARM-based products. The ARM Microcontroller Development Kit supports ARM-based microcontrollers and 8051-based microcontrollers from companies, such as Analog Devices, Atmel, Freescale, Fujitsu, NXP, Samsung, Sharp, STMicroelectronics, Texas Instruments and Toshiba. The ARM Microcontroller Development Kit is used by developers who are building products and writing software using standard off-the-shelf microcontrollers.
The ARM Microprocessor Families
ARM architecture processors offers a range of performance options in the ARM7 family, ARM9 family, ARM11 family, ARM Cortex family and ARM SecurCore family. The ARM architecture gives systems designers a choice of processor cores at different performance/price points. The ARM7 offers 32-bit architecture capable of operating from 8/16-bit memory on an 8/16-bit bus through the implementation of the Thumb instruction set . The ARM9 family consists of a range of microprocessors in ! the 150-2! 50MHz range. Each processor has been designed for a specific application or function, such as an application processor for a feature phone or running a wireless fidelity (WiFi) protocol stack. The ARM9 family consists of a range of microprocessors in the 150-250 megahertz range. The ARM11 family consists of a range of microprocessors in the 300-600 megahertz range. ARM Cortex family is ARM’s family of processor cores based on version 7 of the ARM Architecture. The family is split into three series: A Series, A Series and M Series.
- [By John Udovich]
Among the recent news from chip stock Advanced Micro Devices, Inc (NYSE: AMD) was a partnership with ARM Holdings plc (NASDAQ: ARMH) that’s intended to give the company a leg up on rivals like Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA). I should point out that we previously had an open position in Advanced Micro Devices in our SmallCap Network Elite Opportunity (SCN EO) portfolio from last summer up until late January when we locked in a small loss. We bailed not because we don’t believe in the company’s potential over the long term, but because our SCN EO is a trading portfolio rather than a long term buy and hold portfolio. Moreover, AMD’s shares had sunk again after the company reported earnings – a repeat performance of what happened after three previous earnings reports. With that in mind, here is a quick look at some of the latest good news AMD is producing:
- [By Jon C. Ogg]
Perhaps the biggest wild card of them all is speculation that a buyer could swoop AMD up without anyone noticing. This buyout is not even really a rumor, but as Qualcomm Inc. (NASDAQ: QCOM), ARM Holdings PLC (NASDAQ: ARMH) and others want a better way to compete against Intel, we do not view this as impossible.
- [By Jake L’Ecuyer]
Equities Trading DOWN
Shares of ARM Holdings plc (NASDAQ: ARMH) were down 6.92 percent to $42.64 after the company posted a loss in the fourth quarter.