The month of May turned out a lot better for stocks than many would have expected. That could bode well for the rest of the summer, according to Ned Davis Research.
The SPDR S&P 500 ETF (SPY) gained 2.3% in May, while the SPDR Dow Jones Industrial Average ETF (DIA) rose 1.2%, and even the beaten-down iShares Russell 2000 ETF (IWM) finished up 0.8% last month. Last but not least, the PowerShares QQQ (QQQ), which tracks the Nasdaq 100, rose a whopping 4.5%.
Ned Davis Research’s Dan Sanborn and team not that the S&P 500 has had slightly bigger gains and slightly smaller losses along the way from June through October when May has been up by at least two percent. The S&P 500 has gained 3.9% on average during those periods, compared to a 2.7% during all periods, while the index has suffered a maximum loss of 7.3% along the way, compared to an 8.1% loss during all periods.
In other words, if you sat tight in May, you look to be in good shape. If you sold, maybe it’s time to reconsider?
Top 10 Canadian Stocks To Own For 2015: (AMC)
AMC Entertainment Holdings, Inc., through its subsidiaries, operates as a theatrical exhibition company in the United States and internationally. As of June 30, 2011, it owned, operated, or had interests in 357 theatres and 5,098 screens in 31 states and the District of Columbia, and 4 countries outside the United States. The company was founded in 1920 and is headquartered in Kansas City, Missouri. As of August 30, 2012, AMC Entertainment Holdings, Inc. operates as a subsidiary of Dalian Wanda Group Corporation Ltd.
- [By Brian Nichols]
Thanks to visionaries like Steve Jobs, Jeff Bezos, Reed Hastings, and Larry Page, the way we view, interact, and process data has changed and this includes all of the major industries within technology and entertainment. Today, it’s a mobile world, yet the one industry that remains unchanged is very much the movie industry. According to DreamWorks Animation (NASDAQ: DWA ) CEO Jeffrey Katzenberg, this could spell trouble, especially for the likes of Carmike Cinemas (NASDAQ: CKEC ) , Regal Entertainment (NYSE: RGC ) , and AMC Entertainment Holdings (NYSE: AMC ) .
- [By Rick Aristotle Munarriz]
Frederic J. Brown, AFP/Getty Images Moviegoers aren’t heading out the multiplex the way they used to, but that doesn’t mean that Hollywood is toast. AMC Entertainment (AMC) reported quarterly results Tuesday. The nation’s leading exhibitor — 345 theaters with 4,976 screens — went public two months ago. The headline numbers are positive. Revenue increased a better than expected 2.3 percent to $713 million. Profitability also expanded nicely. However, revenue increased as a result of a 5.5 percent increase in ticket prices and a 3.7 percent uptick in concessions purchased by patrons. Obviously you don’t see those kind of gains against a mere 2.3 percent lift in revenue without dealing with more empty seats, and that’s just what happened. There was a 3.2 percent decline in attendance. AMC’s ticket takers welcomed 50.4 million guests during the holiday quarter, well below the 52.1 million guests that it entertained a year earlier. That’s bad, and what makes things worse is that it had fewer theaters — from continuing operations — a year earlier. It wouldn’t be wise to hold out for a Hollywood ending. Customers Want Bigger and Better Things Apologists will argue that it wasn’t a bumper crop of movies hitting theaters, but that’s not accurate at all. Last year’s biggest box office winner — “The Hunger Games: Catching Fire” — opened in November. Disney’s “Frozen” also opened ahead of the holidays, and it’s the family entertainment giant’s biggest non-Pixar earner since 1994’s “The Lion King.” Moviegoers still come out for the big movies, and they’re also willing to pay more for a premium setting. IMAX (IMAX) reported blowout quarterly results a few days earlier. IMAX screens rang up a record $244 million in ticket sales worldwide. IMAX is also closing out the year with a record backlog of 384 commercial theaters to deploy. RealD (RLD) is also holding up nicely as a leading provider of 3-D systems for exhibitors. It enjoyed a major boost with “Gravity,” a
- [By Rick Aristotle Munarriz]
Getty Images From a popular multiplex operator going public to a retailer getting hacked at the worst possible time, here’s a rundown of the week’s best and worst news from the business world. Chipotle Mexican Grill (CMG) — Winner Chipotle is getting a new stamp in its ethnic cuisine passport. Having mastered Mexican, it was already giving Asian a shot with its new ShopHouse chain. And now, we can add Italian to its map after Chipotle revealed this week that it’s a financial backer of Pizzeria Locale. The fast casual concept gives pizza a Chipotle-like makeover with folks ordering at the counter, customizing their 11-inch pies along the assembly line, after which they are baked in a speedy oven that serves up tasty pies in just two minutes. Chipotle’s growing just fine with its flagship burrito chain, but it never hurts to diversify before expansion-fueled growth plateaus, or tastes change. Target (TGT) — Loser Holiday shopping at Target may ultimately prove to more trouble than bargain seekers were hoping for this season. The cheap chic discounter revealed that hackers installed software that stole the info on more than 40 million credit and debit card transactions from Nov. 27 through Dec. 15. This is naturally going to be bad news for those that had their plastic compromised. Everyone that shopped at Target this season is being advised to carefully look over their statements. However, it’s also very bad for the retailer at the worst possible time. Shoppers may not be too comfortable heading into Target during these last few shopping days before Christmas. AMC Entertainment (AMC) — Winner Lights! Camera! IPO action! It may not have been the blockbuster IPO of the year, but the debut of the leading movie theater chain proved to be a success this week. AMC Entertainment went public at $18, opening 7 percent higher and staying above its IPO price. The leading exhibitor operates 343 movie theaters housing 4,950 screens. AMC entertains 200 million guests
- [By DailyFinance Staff]
The looming Fed taper has been the talk of Wall Street for months, but it still came as a surprise to investors when it actually happened. Stocks rallied Wednesday following the Fed’s decision to cut its $85 billion a month purchase of bonds by $10 billion, beginning in January. Outgoing Fed Chairman Ben Bernanke said the economy continues to “make progress.” The Dow Jones industrial average (^DJI) soared 292 points on the news, its third biggest one-day gain this year. The Dow also hit a closing high, as did the Standard & Poor’s 500 index (^GPSC), which gained 29 points. And the Nasdaq composite (^IXIC) rose 46 points. Consider it Bernanke’s final present to the market before he retires from his position atop the Fed. Among the big blue chip winners, 3M (MMM) rose 3 percent, while Exxon Mobil (XOM), Chevron (CVX) and Goldman Sachs (GS) all rose 2 percent. But Microsoft (MSFT) was flat, reflecting across the board weakness in tech stocks. Many of the biggest players on the Nasdaq lost ground despite the overall market rally. Apple (AAPL) and Twitter (TWTR) ended lower and Tesla (TSLA) lost nearly 3 percent. Part of the reason for the tech weakness was an earnings miss and a weak forecast from Jabil Circuits (JBL), a key maker of electronics. Its shares plunged 20 percent. But homebuilders were strong following a report showing that housing starts last month rose to highest level in nearly six years. Lennar (LEN), which also posted strong earnings, jumped 6 percent. William Lyon Homes rose 4 percent, KB Homes (KBH) and Toll Brothers (TOL) each rose 3.5 percent. Ford (F) shares skidded more than 6 percent after lowering its profit forecast for next year. The company also warned that it may not meet its target for 2015 and 2016. In part, Ford blames the high expenses tied its planned launch of a record number of new vehicles next year. Finally, the movie theater chain AMC Entertainment (AMC) rose 5 percent from its $18 a share IPO price. This is exp
Top 10 Canadian Stocks To Own For 2015: (AUQ)
AuRico Gold Inc. engages in the exploration, development, and production of gold and silver projects and properties in Canada, Mexico, and Australia. Its principal property includes the Ocampo mine covering approximately 15,000 hectares located in Chihuahua State. The company was formerly known as Gammon Gold Inc. and changed its name to AuRico Gold Inc. in June 2011. AuRico Gold Inc. was founded in 1986 and is based in Toronto, Canada.
- [By GuruFocus]
George Soros (Trades, Portfolio) just reported his first quarter portfolio. He buys Citrix Systems Inc, Baker Hughes Inc, Comcast Corp, Spansion Inc, etc during the 3-months ended 03/31/2014, according to the most recent filings of his investment company, Soros Fund Management LLC. As of 03/31/2014, Soros Fund Management LLC owns 305 stocks with a total value of $10.1 billion. These are the details of the buys and sells.New Purchases: BHI, CODE, CTRP, CLI, AVB, COMM, CNQ, AGO, AUY, ATML, ASH, BXMT, CSTM, AEM, CMA, ARE, CHKP, AUQ, BEAV, CX, ADSK, AALCP, BLK, AIG, BIIB, ADEP, AMRI, ARWR, ATHX, BALT, BCRX, BEAT, CFX, CLFD, CUR, CODE,Added Positions: CTXS, CMCSA, CNP, ALTR, BRCD, CBS, CRM, CHTR, CCJ, CIEN, BIDU, ALLE, ABT, CDNS, ACT,Reduced Positions: AAPL, CCI, AMT, ABBV, AAL, BITA, AL, ANGI, ARIA, CBST, BA, BIRT, EXAR,Sold Out: C, BAC, CRI, AMZN, AGN, CF, BRCM, COTY, BMY, AMCX, CAR, A, ADBE, AFL,For the details of George Soros (Trades, Portfolio)’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=George+SorosThis is the sector weightings of his portfolio:Technology18.9%Energy14%Healthcare8.3%Consumer Defensive8.2%Communication Services8.1%Consumer Cyclical5.4%Industrials5.1%Basic Materials4.9%Financial Services2.5%Real Estate1.9%Utilities0.5%These are the top 5 holdings of George Soros (Trades, Portfolio)1. Teva Pharmaceutical Industries Ltd (TEVA) – 10,310,041 shares, 5.4% of the total portfolio. Shares added by 10.67%2. Herbalife Ltd (HLF) – 4,901,337 shares, 2.8% of the total portfolio. Shares added by 52.9%3. EQT Corp (EQT) – 2,573,814 shares, 2.5% of the total portfolio. Shares added by 3.27%4. Adecoagro SA (AGRO) – 25,915,076 shares, 2.1% of the total portfolio.5. Halliburton Co (HAL) – 3,596,353 shares, 2.1% of the total portfolio. Shares reduced by 20.73%New Purchase: Baker Hughes Inc (BHI)George Soros (Trades, Portfolio) initiated holdings in Baker Hughes Inc. His purchase prices were between $51.82 and $65.2 7, with an estimated
- [By Selena Maranjian]
AuRico Gold (NYSE: AUQ ) plunged 44%, having posted some disappointing results lately, and is also suffering from a competitive disadvantage, with its costs above those of some peers. On the plus side, though, the company recently initiated a dividend, which now yields about 2.8%.
Top 10 Canadian Stocks To Own For 2015: Canadian Imperial Bank of Commerce(CM)
Canadian Imperial Bank of Commerce provides various financial products, services, and advice to individual, small business, commercial, corporate, and institutional clients in Canada and internationally. The company offers retail markets services comprising personal banking, business banking, and wealth management services, as well as investment management services to retail and institutional clients. It also provides wholesale banking services, including credit, capital markets, investment banking, merchant banking, and research products and services to government, institutional, corporate, and retail clients. The company provides its services through its branch network, automated bank machines, mobile banking, and online banking site. As of June 3, 2011, it operated approximately 1,100 branches and 4,000 automated bank machines in Canada. The company was founded in 1867 and is headquartered in Toronto, Canada.
- [By John Buckingham]
Canadian Imperial Bank (CM)
Canadian Imperial Bank, often referred to as CIBC, is the fifth-largest Canadian bank by market capitalization. We like that the firm reported relatively strong Q4 earnings, showing net income growth across all divisions.
- [By Will Ashworth]
NTIOF Rating: 7
Canadian Imperial Bank of Commerce (CM)
Dividend Yield: 4.4%
According to a report by TD Securities, Canadian Imperial Bank of Commerce (CM) generates 80% of its total loans in Canada, higher than any other major Canadian bank.
- [By Dan Caplinger]
It’s easy for U.S. investors to paint Canadian banks with a single brush-stroke, as the differences in the banking system helped keep Bank of Montreal and its peers safer during the financial crisis five years ago. As Canada’s housing market has kept rising even after the housing bust south of its border, however, investors have gotten increasingly concerned about the potential health of its banks, especially the largest ones. With downgrades for Canadian Imperial Bank of Commerce (NYSE: CM ) , Toronto-Dominion (NYSE: TD ) , and Bank of Montreal among a total of six banks in January, Moody’s identified higher debt levels among Canadian consumers as driving potential risk for the economy.
Top 10 Canadian Stocks To Own For 2015: Encana Corporation(ECA)
Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids. The company owns interests in resource plays that primarily include the Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane resource plays located in British Columbia and Alberta, as well as the Deep Panuke natural gas project offshore Nova Scotia in Canada. It also holds interests in resource plays comprising the Jonah in southwest Wyoming, Piceance in northwest Colorado, Haynesville in Louisiana, and Texas resource play, including east Texas and north Texas. The company serves primarily local distribution companies, industrials, energy marketing companies, and other producers. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.
- [By Aaron Levitt]
Recently, Canada’s largest natural gas producer EnCana (ECA) highlighted one of the most ignored ways to profit from the energy sector; ECA announced that they will place around 5.2 million acres worth of oil and gas reserves/wells in Alberta, Canada into a new subsidy called PrairieSky Royalty. EnCana will sell shares of the firm in order to raise some much needed cash. PrairieSky should IPO by mid-June.
- [By Bruce Kennedy]
The EIA examined annual reports from 42 oil and natural gas companies, from giants like Brazil’s Petrobras (NYSE: PBR) and ExxonMobil (NYSE: XOM) to smaller firms like Talisman Energy (NYSE: TLM) and Encana (NYSE: ECA) – companies that reportedly made up about 40 percent of non-OPEC production last year, and that had combined market capitalization of over $2.4 trillion.
- [By Monica Wolfe]
Manning & Napier’s fifth largest holding is in Ecana. The guru holds on to 27,376,066 shares of Unilever, representing 2.4% of their total holdings and 3.71% of the company’s shares outstanding. Over the past quarter, Manning & Napier increased their position 0.22% by purchasing 60,930 shares. They purchased these shares in the first quarter price range of $17.25 to $21.42, with an estimated average quarterly price of $18.90. Since then the price per share has increased approximately 21.8%.
Top 10 Canadian Stocks To Own For 2015: Vanguard Natural Resources LLC(VNR)
Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. Its properties are located in the southern portion of the Appalachian Basin, primarily in southeast Kentucky and northeast Tennessee; the Permian Basin, primarily in west Texas and southeastern New Mexico; and south Texas. As of December 31, 2010, the company had estimated proved reserves of 69.3 million barrels of oil equivalent, as well as working interests in 2,270 net productive wells. Vanguard Natural Resources, LLC was founded in 2006 and is based in Houston, Texas.
- [By Tyler Crowe]
If you’re looking for income investments, then it’s awfully hard to argue with the massive distribution payments from LINN Energy (NASDAQ: LINE ) (NASDAQ: LNCO ) , Breitburn Energy Partners (NASDAQ: BBEP ) , and Vanguard Natural Resources (NASDAQ: VNR ) . Thing is, though, income investments need both a decent yield and a level of certainty that it will keep that distribution going for many years to come. Other than being high-yielding investments, they are also all master limited partnerships, which means you need to look beyond just the operations to see how these companies will stand the test of time.
- [By Robert Rapier]
During this past week’s joint monthly web chat for subscribers of The Energy Strategist and MLP Profits, we received several questions about Vanguard Natural Resources (Nasdaq: VNR). So let’s get to know this energy income play a little better.
Top 10 Canadian Stocks To Own For 2015: El Paso Electric Company (EE)
El Paso Electric Company, a public utility company, engages in the generation, transmission, and distribution of electricity primarily in west Texas and southern New Mexico. It principally operates nuclear, natural gas, and coal power plants, as well as wind turbines. As of December 31, 2010, the company owned 6 electrical generating facilities with a net generating capacity of approximately 1,643 megawatts. It serves approximately 370,000 residential, commercial, industrial, public authority, and wholesale customers. The company sells its products to electric utilities and power marketers, as well as to oil and copper refining, and steel production facilities, universities, and the United States military installations. El Paso Electric Company was founded in 1901 and is based in El Paso, Texas.
- [By Tyler Crowe]
It may have been a long time coming, but the technology for renewable fuels is very close to the point that they can can compete on the open market against traditional energy sources. First Solar just recently announced a deal with El Paso Electric (NYSE: EE ) that it will sell electricity to El Paso from its Macho Springs solar facility for 5.79 cents per kilowatt hour, less than half what El Paso pays for electricity from coal. Also, the Federal Energy Regulation Commission has stated that 83% of all additional energy generation in the U.S. for Q1 2013 came from either wind or solar facilities. Perhaps the route to developing better solutions wasn’t the smoothest, but it’s hard to deny the overall outcome.
- [By Tyler Crowe]
If we were to pinpoint a company that embodies this success as of late, it’s First Solar (NASDAQ: FSLR ) . It just sold a 139 megawatt facility to utility giant — and large coal consumer — Southern (NYSE: SO ) , and recently signed a power purchase deal with El Paso Electric (NYSE: EE ) that will supply El Paso with electricity for half what it pays for power from coal. These deals also come with the announcement that the company upped guidance earlier in April which sent share prices up by 46% in one day.
Top 10 Canadian Stocks To Own 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