NEW YORK — In the latest sign of a healthy market for initial public offerings, shares of Extended Stay America hotel chain were up 16% in its first day of trading on the New York Stock Exchange.
The hotel chain, which specializes in mid-priced hotel rooms that mimic apartments and are rented by the week or month, priced its IPO at $20 per share, near the top of the range of $18 to $21. The shares rallied as high as $23.90 in early trading and were up $3.20 to $23.20 at midday.
The company, which is headed by ex-Starbucks CEO Jim Donald, raised roughly $565 million with the sale of 28.25 million shares.
IPOs have been hot lately, witnessed by the 70%-plus first-day return of micro-blogging site Twitter last week.
ASK MATT: What have been the year’s worst IPOs?
The hotel chain, which operates about 700 hotels, was bought out of bankruptcy three years ago by investment firms Blackstone Group, Centerbridge Partners and Paulson & Co. Extended Stay sold about 14% of the company, giving the company a market value of roughly $4 billion.
Hot Performing Stocks To Own Right Now: Carbo Ceramics Inc. (CRR)
CARBO Ceramics Inc. manufactures and supplies resin-coated ceramic and resin-coated sand proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The company offers proppants, including CARBOHSP and CARBOPROP designed for use in deep gas wells; CARBOLITE used in medium depth oil and gas wells; CARBOECONOPROP; CARBOHYDROPROP used to enhance performance in slickwater fracture treatments; CARBOBOND LITE for oil and natural gas wells that are subject to the risk of proppant flow-back; and CARBOBOND RCS, a conductivity proppant. It also provides fracture simulation software, as well as offers fracture design, engineering, and consulting services to oil and natural gas companies. In addition, the company provides a range of technologies for spill prevention, containment, countermeasures, and geotechnical monitoring, as well as offers monitoring systems and services for bridges, buildings, tunnels, dams, slopes, e mbankments, volcanoes, landslides, mines, and construction projects primarily for customers in auto racing teams, surveyors, experimental physicists, radio astronomers, and naval architects markets. It principally sells its products and services to operators of oil and natural gas wells, and oilfield service companies. The company was founded in 1987 and is headquartered in Houston, Texas.
- [By Jim Fink]
Picking the right stocks is only half the battle. You have to know when to sell. This can be harder than you think: having done enough research to appreciate the positive aspects of a company, you may be inclined to disbelieve information that its expansion strategy is not working out as well as predicted, or that the stock price is simply overvalued.
One of the investment choices at Roadrunner Stocks that I am proudest of this year was my “sell” recommendation on Carbo Ceramics (NYSE: CRR) on June 5 of this year. At the time the stock price was up around 136. Since then, it has collapsed by more than 50 percent in less than four months. At last look it was selling at around 66. Quite a drop!
Here’s what I wrote at the time: “Carbo Ceramics is still a great company, but its stock price appears fully valued and has run up on speculation concerning its Kryptosphere proppant for deepwater drilling applications. Given the forecast for deepwater slowdown , the excitement over Kryptosphere is probably overdone and setting the stock up for disappointment. In any event, Carbo Ceramics is the most expensive stock in the Value Portfolio, has a high short interest-to-float ratio above 20%, and no longer qualifies as cheap, so it’s time to let go.”
Why were we in favor of Carbo Ceramics to begin with? The firm recently introduced its most high-tech ceramic proppant to date: Kryptosphere. This new proppant targets the deepest (30,000+ feet down), highest-pressure deep-water wells in the Lower Tertiary of the Gulf of Mexico. The pressure per square inch (OSI) in these deep-water wells can exceed 20,000 pounds and Kryptosphere is the only proppant that can handle this enormous stress level without collapsing. According to Carbo, Kryptosphere is the “strongest, highest conductivity proppant ever made.”
Besides the fact that Carbo raised its dividend for 13 consecutive years and has a debt-free balance sheet, the main reason I lik
- [By Luke Jacobi]
CARBO Ceramics (NYSE: CRR) shares tumbled 16.1 percent to $70.91 after the company provided an update concerning marketplace conditions and related impact to sales volumes.
- [By Garrett Cook]
CARBO Ceramics (NYSE: CRR) shares tumbled 17.85 percent to $69.43 after the company provided an update concerning marketplace conditions and related impact to sales volumes.
- [By Aaron Levitt]
At its core, CARBO Ceramics (CRR) manufactures synthetic proppants used in oil and gas drilling. The takeaway for E&P firms willing to cough up the extra bucks for “artificial sand” is that they are able to squeeze out more natural gas and shale oil from wells using CRR’s products — about 20% more. That extra production, especially given the high price for oil, can mean the difference between whether a project is profitable or not.
Hot Performing Stocks To Own Right Now: Evolution Petroleum Corporation Inc. (EPM)
Evolution Petroleum Corporation, an independent petroleum company, together with its subsidiaries, acquires, exploits, and develops properties for the production of crude oil and natural gas in the United States. It primarily holds interests in the Holt Bryant Unit in the Delhi Field located in Northeast Louisiana. The company also has interests in the Giddings Field in Central Texas; the Lopez Field in South Texas; and the Woodford shale projects in Southeast Oklahoma. As of June 30, 2013, it had total proved reserves of 13,766 MBOE; and probable reserves of 11,224 MBOE. The company is headquartered in Houston, Texas.
- [By Rich Duprey]
For holders of Evolution Petroleum’s (NYSEMKT: EPM ) perpetual non-convertible 8.5% Series A cumulative preferred stock, investors will receive 1/12th of the 8.5% annualized amount, or approximately $0.177083 per share, based on the $25.00 per share liquidation preference.
Hot Performing Stocks To Own Right Now: Federal Home Loan Mortgage Corp (FMCC)
Federal Home Loan Mortgage Corporation (Freddie Mac) conducts business in the United States residential mortgage market and the global securities market. The Company operates in three segments: Single-family Guarantee, Investments, and Multifamily. The Single-family Guarantee segment reflects results from the Company’s single-family credit guarantee activities. The Investments segment reflects results from the Company’s investment, funding and hedging activities. The Multifamily segment reflects results from the Company’s investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. The Company conducts its operations in the United States and its territories.
Single-Family Guarantee Segment
In the Company’s Single-family Guarantee segment, it purchases single-family mortgage loans originated by the Company’s seller/servicers in the primary mortgage market. The Company uses the mo rtgage securitization process to package the purchased mortgage loans into guaranteed mortgage-related securities. The Company guarantees the payment of principal and interest on the mortgage-related security in exchange for management and guarantee fees. The Company’s customers are lenders in the primary mortgage market that originate mortgages for homeowners. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, Housing Finance Agency (HFAs), and savings and loan associations. The Company’s customers also service loans in its single-family credit guarantee portfolio.
Mortgage securitization is a process, by which the Company purchase mortgage loans that lenders originate, and pool these loans into mortgage securities that are sold in global capital markets. The United States residential mortgage market consists of a primary mortgage market that links homebuyers and lenders and a secondary mortga ge market that links lenders and investors. The Company part! icipates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities. In the Single-family Guarantee segment, it purchase and securitize single-family mortgages, which are mortgages that are secured by one- to four-family properties. The types of mortgage-related securities it issue and guarantee include PCs, REMICs and Other Structured Securities and Other Guarantee Transactions. The Company also issue mortgage-related securities to third parties in exchange for non-Freddie Mac mortgage-related securities. The non-Freddie Mac mortgage-related securities are transferred to trusts that were specifically created for the purpose of issuing securities, or certificates, in the Other Guarantee Transactions.
In the Company’s Investments segment, it invests principally in mortgage-related securities and single-family performing mortga ge loans, which are funded by other debt issuances and hedged using derivatives. In the Company’s Investments segment, it also provides funding and hedging management services to the Single-family Guarantee and Multifamily segments. The Company’s customers for its debt securities predominantly include insurance companies, money managers, central banks, depository institutions, and pension funds. The Company funds its investment activities by issuing short-term and long-term debt. The Company’s PCs are an integral part of its mortgage purchase program. The Company’s Single-family Guarantee segment purchases many of its mortgages by issuing PCs in exchange for those mortgage loans in guarantor swap transactions. The Company also issue PCs backed by mortgage loans that it purchased for cash.
The Company’s multifamily segment issues Other Structured Securities, but does not issue REMIC securities. The Company multifamily s egment also enters into other guarantee commitments for mult! ifamily H! FA bonds and housing revenue bonds held by third parties. The Company acquires a portion of its multifamily mortgage loans from several large seller/servicers.
The Company competes with Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), Mae Federal Housing Administration/the United States Department of Veteran Affairs (FHA/VA) and Federal Home Loan Bank (FHLB).
- [By Anna Prior]
MGIC Investment Corp.(MTG) and Radian Group Inc.(RDN) criticized proposed standards for private-mortgage insurers seeking to do business with Fannie Mae (FNMA) and Freddie Mac (FMCC), claiming the level of liquid assets insurers would need to hold is excessive. MGIC shares slumped 13% to $8.00 premarket, while Radian shares fell 6.5% to $13.60.
- [By Dan Caplinger]
3. Potential changes in the mortgage market present new risks.
Wells Fargo notes its mortgage business is a key part of its overall success, and to a large extent, it relies on government-sponsored enterprises Fannie Mae (NASDAQOTCBB: FNMA ) and Freddie Mac (NASDAQOTCBB: FMCC ) to repurchase most of the loans it extends to customers. As the largest mortgage originator and servicer in the U.S., Wells Fargo is particularly sensitive to changes in the mortgage market, and government efforts to wind down Fannie Mae and Freddie Mac could potentially transform the industry in a way that would require a swift and strong response from the bank.
- [By Patrick Morris]
Warren Buffett at Berkshire Hathaway has once again provided a unique and critical insight into what he believes is best for government-sponsored mortgage enterprises Fannie Mae (NASDAQOTCBB: FNMA ) and Freddie Mac (NASDAQOTCBB: FMCC ) .
- [By Dimitra DeFotis]
Investor Bill Ackman, who knows a thing or two about real estate, just made the case for reforming Fannie Mae (FNMA) and Freddie Mac (FMCC) but keeping them independent of government control.
Hot Performing Stocks To Own Right Now: BPZ Resources Inc (BPZ)
BPZ Resources, Inc., together with its subsidiaries, focuses on the exploration, development, and production of oil and natural gas in Peru and Ecuador. It owns rights and license agreements for oil and gas exploration and production covering approximately 2.2 million acres in 4 blocks in northwest Peru and off the northwest coast of Peru in the Gulf of Guayaquil. The company also owns a 10% non-operating net profits interest in an oil and gas producing property located in the southwest region of Ecuador. As of December 31, 2011, it had estimated net proved oil reserves of 34.7 million barrels (MMBbls) of crude oil or other liquid hydrocarbons, including 27.8 MMBbls were in the Corvina field and 6.9 MMBbls were from the Albacora field located in northwest Peru. The company was founded in 2001 and is headquartered in Houston, Texas.
- [By Lee Jackson]
BPZ Resources Inc. (NYSE: BPZ) may be a small cap investor’s dream stock to buy. Its first well drilled in the Corvina field since 2010 was spudded in late July and likely will take about 12 weeks. It will take another week or so to achieve a stabilized flow rate before results are reported to the market, which means it will not expect to hear anything until November. The Raymond James price target for the stock is $4.50, the same as the consensus target.
Hot Performing Stocks To Own Right Now: Silicon Graphics International Corp(SGI)
Silicon Graphics International Corp. provides computing and storage, and data center solutions, as well as related customer support and professional services. The company offers scale up servers; scale out servers; work group servers; data storage systems; and software products for technical computing, as well as data center infrastructure products, including ICE Cube Air, a modular data center that augments or replaces traditional brick-and-mortar data centers; and MobiRack, a line of mobile, all-in-one data center cabinets for field deployments. Its products and services are used by the scientific, technical, and business communities for solving challenging data-intensive computing, data storage, and management problems. The company also develops system applications, such as simulating global climate changes, accelerating engineering of new automotive designs, supporting homeland security initiatives, real-time fraud detection, streaming media from Internet-video to film , and gaining business intelligence through data-mining to defense and strategic systems, weather and climate, physical and life sciences, energy, aerospace and automotive, media and entertainment, semiconductor design and manufacturing, financial services, data centers, and business intelligence and data analytics markets; and enterprise class features for the Linux operating system that provide a standard Linux operating environment. Silicon Graphics International Corp. markets and sells its systems, technologies, software, and services to enterprises in approximately 25 countries through direct and indirect sales force, including distributors, original equipment manufacturers, system integrators, value added resellers, and channel partners. The company was formerly known as Rackable Systems, Inc. and changed its name to Silicon Graphics International Corp. in May 2009. Silicon Graphics International Corp. was incorporated in 2002 and is headquartered in Fremont, Californ i a.
- [By Roberto Pedone]
Silicon Graphics International (SGI) develops, markets and sells various servers, enterprise-class storage hardware, differentiating software and solutions. This stock closed up 3.3% to $9.36 in Thursday’s trading session.
Thursday’s Range: $9.07-$9.47
52-Week Range: $8.16-$16.60
Thursday’s Volume: 179,000
Three-Month Average Volume: 270,564
From a technical perspective, SGI bounced notably higher here right above some near-term support at $9 with lighter-than-average volume. This stock has been making higher lows over the last two months, and this stock is now starting to trend within range of triggering a near-term breakout trade. That trade will hit if SGI manages to take out some near-term overhead resistance levels at its 50-day moving average of $9.58 to some more near-term overhead resistance levels at $9.65 to $10.23 with high volume.
Traders should now look for long-biased trades in SGI as long as it’s trending above some near-term support levels at $9 or at $8.86 and then once it sustains a move or close above those breakout levels with volume that hits near or above 270,564 shares. If that breakout hits soon, then SGI will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $10.83 to its gap-down-day high of $11 from May. Any high-volume move above $11 will then give SGI a chance to re-fill some of its previous gap-down-day zone that started near $12.50.
- [By John Udovich]
On Thursday, small cap supercomputer stock Cray Inc (NASDAQ: CRAY) announced that it had been rewarded with one of the largest contracts in its history for $174 million to provide the National Nuclear Security Administration (NNSA) with supercomputers – meaning its worth taking a closer look at the stock along with the performance of large caps like International Business Machines Corp (NYSE: IBM) and Hewlett-Packard Company (NYSE: HPQ) plus small cap Silicon Graphics International Corp (NASDAQ: SGI) who sort of compete with the company in the supercomputing space. I should note that over a year ago, we had Cray Inc in our SmallCap Network Elite Opportunity (SCN EO) trading portfolio when we had suggested it was potentially a good low risk longer-term play.
- [By Seth Jayson]
Silicon Graphics International (Nasdaq: SGI ) is expected to report Q3 earnings on April 30. Here’s what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Silicon Graphics International’s revenues will grow 7.7% and EPS will expand 27.3%.
- [By Wallace Witkowski]
One recent example of how the shutdown wormed its way into earnings was a profit warning from Silicon Graphics International Corp. (SGI) . SGI cut its outlook, citing lost revenue from contracts that were frozen late in the September-ending quarter in the run-up to the shutdown. Shares of the large-scale computing company dropped nearly 10% on Friday following the late Thursday warning.
Hot Performing Stocks To Own Right Now: FedFirst Financial Corporation(FFCO)
FedFirst Financial Corporation operates as the holding company for the First Federal Savings Bank, which provides various banking and financial services to individuals and businesses primarily in southwestern Pennsylvania. The company accepts deposit products, which include noninterest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts, including NOW and money market accounts; statement savings accounts; and certificates of deposit comprising individual retirement accounts. Its loan products include residential mortgage loans, commercial and multi-family real estate loans, construction loans, commercial business loans, and consumer loans, including home equity lines of credit, home equity installment loans, loans on savings accounts, and personal lines of credit and installment loans. The company also operates as an insurance agent offering property and casualty, commercial liability, surety, and other insurance products. As of July 15, 20 11, it operated nine full-service branch locations in Fayette, Washington, and Westmoreland counties, Pittsburgh. The company was founded in 1922 and is based in Monessen, Pennsylvania. FedFirst Financial Corporation is a subsidiary of FedFirst Financial Mutual Holding Company.
- [By Wallace Witkowski]
Shares of FedFirst Financial Corp. (FFCO) rose 9.7% to $22 on light volume. Shares had been halted at $20.06 after the bell pending news.
Hot Performing Stocks To Own Right Now: Atlatsa Resources Corp (ATL)
Atlatsa Resources Corporation is engaged in mining, exploration and development of mineral deposits located in the Bushveld Igneous Complex (BIC), South Africa. The principal business activity is the mining and exploration of platinum group metals (PGM), through its mineral property interests. The Company’s subsidiaries include N1C Resources Incorporation, Anooraq Minera Mexicana, N2C Resources Incorporation, Plateau Resources Proprietary Limited, Bokoni Holdings Proprietary Limited, Bokoni Mines Proprietary Limited, Boikgantsho Proprietary Limited, Kwanda Proprietary Limited, Ga-Phasha Proprietary Limited, Middlepunt Hill Management Services (Proprietary) Limited and Lebowa Platinum Mine Limited. Advisors’ Opinion:
- [By Roberto Pedone]
Another stock that’s starting to move within range of triggering a big breakout trade is Atlatsa Resources (ATL), which engages in the mining, exploration and development of platinum group metals properties located in the Bushveld Igneous Complex in South Africa. This stock has been on fire so far in 2013, with shares up a whopping 198%.
If you take a look at the chart for Atlatsa Resources, you’ll notice that this stock has been uptrending strong for the last two months and change, with shares soaring higher from its low of 28 cents per share to its intraday high of 46 cents per share. During that uptrend, shares of ATL have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of ATL have now started to take out some near-term overhead resistance levels at 43 cents to 44 cents per share That move is quickly pushing shares of ATL within range of triggering another big breakout trade.
Market players should now look for long-biased trades in ATL if it manages to break out above its 52-week high at 50 cents per share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 170,178 shares. If that breakout hits soon, then ATL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at 63 cents to 73 cents per share, or even 80 cents per share.
Traders can look to buy ATL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of 39 cents per share, or near more support at 37 cents per share. One can also buy ATL off strength once it clears its 52-week high at 50 cents with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Hot Performing Stocks To Own Right Now: Fomento Economico Mexicano SAB de CV (FOMC)
Fomento Economico Mexicano SAB de CV (FEMSA) is a Mexico-based holding company engaged in the beverages industry. Through its subsidiary Coca-Cola FEMSA SAB de CV, the Company is active in the production and distribution of a variety of non-alcoholic beverages, bottled water and still beverages such brands as Coca-Cola, Fanta, Sprite, Powerade, Delaware Punch and other trademark beverages of The Coca-Cola Company in Mexico. Through FEMSA Comercio SA de CV, it operates the OXXO convenience-store chain in Latin America. The Company operates in a number of Latinamerican countries and in Philippines. Advisors’ Opinion:
- [By CanadianValue]
Former Philadelphia Fed President Edward Boehne elegantly described the approach at a Federal Open Market Committee (FOMC) meeting in late 1989:
“Now, sooner or later, we will have a recession. I don’t think anybody around the table wants a recession or is seeking one, but sooner or later we will have one. If in that recession we took advantage of the anti-inflation (impetus) and we got inflation down from 4 1/2 percent to 3 percent, and then in the next expansion we were able to keep inflation from accelerating, sooner or later there will be another recession out there. And so, if we could bring inflation down from cycle to cycle just as we let it build up from cycle to cycle, that would be considerable progress over what we’ve done in other periods in history.”
- [By Canadian Value]
Also interesting is that the duration of rising rate environments is distinctly shorter after 1982. The average duration declines to 14 months from 40 months prior to 1982. A possible explanation could be changes in the monetary mechanism influencing interest rates. In 1982, the Federal Open Market Committee (FOMC) first referenced a targeted federal funds rate.7