The recent derailment of the Montreal, Maine, and Atlantic Railway train in Lac Megantic, Quebec, caused irrevocable damage on a small town just 10 miles from the U.S.-Canada border. The primary cargo of that train, crude from the Bakken region, has led to many questions regarding the practice of moving oil by rail. A recent report from Moody’s says this accident could lead to several new restrictions that could drastically hurt rail shipments. This probably isn’t a revelation, but let’slook at where the oil-by-rail story started and who will see the worst effects of a slowdown.
For lack of a better form of transportation
The recent surge in rail shipments of oil got its start back in 2009, when EOG Resources (NYSE: EOG ) announced a deal with Burlington Northern Santa Fe to move crude away from the Bakken region to markets such as Cushing, Okla. At that time, only 110,000 barrels of oil per day could be moved away from the region through pipeline, and the expansion of production there meant that other methods would need to happen. While trucking to other markets was deemed uneconomical, the differences in spot prices between Bakken crude and West Texas intermediate made it worth the extra costs to ship by rail.
Top 10 European Companies To Own In Right Now: STMicroelectronics N.V.(STM)
STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Its products include discrete and standard commodity components, application-specific integrated circuits, custom devices and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications. The company also offers subsystems and modules for the telecommunications, automotive, and industrial markets comprising mobile phone accessories, battery chargers, ISDN power supplies, and in-vehicle equipment for electronic toll payment, as well as provides Smartcard products. Its products are used in various microelectronic applications consisting of automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation, and control systems. The company sells its products through distributors and ret ailers. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
- [By FinanceGuru]
Could this be the real deal this time? There’s no denying that InvenSense has pretty solid technology, particularly as Samsung — which typically uses the best components it can find — has so extensively used InvenSense’s products. That said, the iPhone 5s used the following MEMS components:
Three-axis accelerometer from Bosch Sensortech Three-axis gyroscope from STMicroelectronics (STM) Three-axis electronic compass from AKM
For InvenSense to displace Bosch (which managed to wrestle away the accelerometer socket from STMicroelectronics) and/or STMicroelectronics over at Apple, it is going to have to present a pretty compelling value proposition. Whether it can do so only the tear-downs will tell, but it is surprising — particularly given how compelling InvenSense’s products seem to be — that the company hasn’t won an iPhone socket to date.
- [By Dan Burrows]
Additionally, Wendy’s can use some of the cash freed up by the franchise model to invest in advertising and marketing, and that should boost customer traffic.
Cheap Dividend Stocks #2: STMicroelectronics (STM)
Share Price as of 4/4: $9.14
YTD Stock Performance: 14%
Dividend Yield: 4.4%
- [By Vanina Egea]
Reed Elsevier NV (ENL) is a diversified publisher and information provider. It works on a wide range of market segments that include scientific, technical and medical (STM); legal; risks solutions and business information and exhibitions. The key of the company’s growth, however, lies almost exclusively in two brands: Elsevier and LexisNexis.
- [By Tyler Laundon]
Analog Devices (ADI) is one of the largest semiconductor companies in the motion-sensing space, with a market cap of $15.87 billion. STM Electronics (STM) is a slightly smaller manufacturer; its market cap is $7.6 billion.
Top 10 European Companies To Own In Right Now: BP p.l.c.(BP)
BP p.l.c. provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. Its Exploration and Production segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trading of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). This segment has exploration and production activities in Angola, Azerbaijan, Canada, Egypt, Norway, Russia, Trinidad and Tobago, the United Kingdom, and the United States, as well as in Asia, Australasia, South America, North Africa, and the Middle East. This segment also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing and transportation, as well as NGL extraction facilities. BP p.l.c. has interests in the Trans-Alaska pipeline system, the Forties pipeline system, the Central Area transmission sys tem pipeline, the South Caucasus Pipeline, and Baku-Tbilisi-Ceyhan pipeline, as well as in LNG plants located in Trinidad, Indonesia, and Australia. The company?s Refining and Marketing segment involves in the supply and trading, refining, manufacturing, marketing, and transportation of crude oil, petroleum, and petrochemicals products and related services to wholesale and retail customers primarily under the BP, Castrol, ARCO, and Aral brands. Its Other Businesses and Corporate segment produces and markets rolled aluminum products, as well as generates energy through wind, solar, biofuels, hydrogen, and carbon capture and storage sources; and engages in shipping activities. The company was founded in 1889 and is headquartered in London, the United Kingdom.
- [By WWW.DAILYFINANCE.COM]
Patrick T. Fallon/Bloomberg via Getty Images College students use Apple (AAPL), Facebook (FB) and Google (GOOG) products every day, so it’s not much of a surprise that those companies are high on their lists of potential employers. But a new survey also shows Boeing (BA), the National Institutes of Health and Disney (DIS) at the top. The annual survey by Universum, an international consulting and brand marketing firm, asked 50,000 students for their top choices — undergraduates in business, engineering, computer sciences, natural sciences and humanities plus those working on their master’s of business administration. Google placed first in three categories and in the top six in all of them. “It is perception-based, so a lot of these companies have really strong brand recognition,” said Kortney Kutsop, senior account director at Universum. “We’re trying to understand what makes students tick, what they’re looking for in a career.” Government Agencies Do Well Students were given 230 potential employers to choose from. NASA, the Department of Energy, the CIA, the Environmental Protection Agency, the Defense Department, the FBI and the Air Force all ranked in the top 40 for engineering students. Kutsop says this is partly because of the desire among students to “give back and be part of the greater good.” Oil and gas companies have also climbed in the rankings among engineering students. Exxon Mobil (XOM) came in No. 6, while Shell Oil (RDS-A), Chevron (CVX) and BP (BP) all made the top 25. “This generation is looking for employers that provide development, training and mentorship,” said Kutsop. “They want to become leaders of the world.” She says they also want jobs that offer some flexibility, work-life balance and job security. She says there’s a perception about millennials that they like to change jobs frequently, but in fact many are seeking job security. “They may stay if they see the opportunity to grow and advance.” Potential employers are working h
- [By Dimitra DeFotis]
Global oil exploration and refining company BP (BP) slid more than 3% after the U.S. and Europe agreed to step up sanctions on Russian energy, defense and banking enterprises. BP has a nearly 20% stake in Russia’s state-controlled energy company Rosneft.
- [By Robert Rapier]
Initially, Transocean Partners is to own 51% of three ultra-deepwater drilling rigs currently operating in the US Gulf of Mexico. Transocean will own the remaining 49% of each. The rigs currently operate under long-term contracts with Chevron (NYSE: CVX) and BP (NYSE: BP) with an average remaining contract term of approximately four years.
- [By Alanna Petroff]
Shares in BP (BP) were down 1% after the oil giant reported its latest set of results. BP, which owns a big stake in Russian oil giant Rosneft, has warned that it could suffer if Western nations slap more sanctions on Russia over the crisis in Ukraine.
Top 10 European Companies To Own In Right Now: Aercap Holdings N.V. (AER)
AerCap Holdings N.V., through its subsidiaries, operates as an integrated aviation company worldwide. It engages in leasing and trading aircraft and engines; and selling parts. The company also provides aircraft management services, as well as aircraft and limited engine MRO services, and aircraft disassembly services through its repair stations. In addition, it offers aircraft services, including remarketing aircraft; collecting rental and maintenance payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft; conducting ongoing lessee financial performance reviews; inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructurings negotiations in connection with lease defaults; repossessing aircraft; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and aircraft engine valuations; and providing market research. The company?s management services include leasing and remarketing, cash management and treasury, technical advisory, and accounting and administrative services. As of March 31, 2011, it owned 272 aircraft and 95 engines, which it leased under operating leases to 118 lessees in 53 countries. The company was founded in 1995 and is headquartered in Schiphol, the Netherlands.
- [By Jayson Derrick]
Analysts at Barclays maintained an Equal-weight rating on Aercap Holdings (NYSE: AER) with a price target raised to $53 from a previous $24. Shares lost 1.32 percent, closing at $47.06.
- [By Ben Levisohn]
Finally. Finally American International Group (AIG) has disposed of its ILFC unit by selling it to AerCap Holdings (AER).
The Wall Street Journal has the details on the deal:
Top 10 European Companies To Own In Right Now: Telefonica SA(TEF)
Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone; local, domestic, and international long distance and fixed-to-mobile communications; corporate communications; video telephony; supplementary and business-oriented value-added services; network services; leasing and sale of handset equipment; and telephony information services. The company?s Internet and broadband multimedia services comprise Internet service provider service; portal and network services; retail and wholesale broadband access; narrowband switched access to Internet; naked ADSL, a broadband connection; residential-oriented value-added services; companies-oriented value-added services; television services, such as IPTV, cable television, and satellite television; and Fiber to the Home, a service for high speed Internet access and digital video recording. Its data and business-solutions services principally include leased lines; virtual private network services; fiber optics services; the provision of hosting and application; outsourcing and consultancy services; desktop services; and system integration and professional services. The company?s wholesale services for telecommunication operators primarily comprise domestic interconnection services; international wholesale services; leased lines for other operators? network deployment; local loop leasing under the unbundled local loop regulation framework; and bit stream services. It also offers various mobile and related services and products that include mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and trunking and paging services. The company has a strategic alliance with China Unicom (Hong Kong) Limited. Telefonica, S.A. was founded in 1924 and is headquartered in Madrid, Spai n.
- [By ID Analysts]
I continue to watch U.S.-based Verizon (NYSE:VZ); more updates later. I don’t currently recommend Spain-based Telefónica (NYSE:TEF), as Robert outlines below.
- [By Jayson Derrick]
Telefonica (NYSE: TEF) announced it is in talks to acquire an un-named Mexican rival for as much as 3 billion euros. Shares gained 1.22 percent, closing at $16.63.
Top 10 European Companies To Own In Right Now: Fresenius Medical Care Corporation (FMS)
Fresenius Medical Care AG & Co. KGaA, a dialysis company, provides products and services for patients with chronic kidney diseases. As of May 12, 2011, it provided dialysis care services to 216,942 patients through its network of 2,769 dialysis clinics primarily in North America, Europe, Latin America, the Asia-Pacific, and Africa. The company also develops and manufactures various dialysis products, including hemodialysis machines, dialyzers, hemofilters, dialysis fluid filters, tubing systems, fistula needles, dialysis related equipment, acute hemodialysis machines, plasma filters, acute tubing systems and cassettes, catheters, and related disposable products for chronic hemodialysis, acute therapy, home therapy, and therapeutic apheresis, as well as dialysis drugs. In addition, it provides laboratory services. Fresenius Medical sells its products through distributors. The company was founded in 1996 and is headquartered in Bad Homburg, Germany.
- [By Louie Grint]
First, Fresenius Medical Care (NYSE: FMS ) is the No. 1 global provider of dialysis equipment. It enjoys leading market share of almost 33% in its home country.
- [By John Udovich]
Small cap dialysis stock Rockwell Medical Inc (NASDAQ: RMTI) looks set to decline when the market opens after Brean Capital initiated coverage with a sell rating and a price target of $4.00, meaning it might be time to take a closer look at what is going on with the stock along with the performance of large cap dialysis stocks DaVita Healthcare Partners (NYSE: DVA) and Fresenius Medical Care (NYSE: FMS) along with small cap dialysis stocks NxStage Medical, Inc (NASDAQ: NXTM).
- [By Johanna Bennett]
Dialysis provider DaVita Healthcare Partners (DVA) soared almost 8.9% to close at $61.55 after the market learned that Medicare funding cuts would come in lower than expected. Rival Fresenius Medical Care (FMS) rose 7.2% on the same news.
Top 10 European Companies To Own In Right Now: Aegon NV(AEG)
AEGON N.V. provides life insurance, pensions, and asset management products and services worldwide. The company?s life insurance products include traditional, term, universal, whole, and other life insurance products sold as part of defined benefit pension plans, endowment policies, post-retirement annuity products, and group risk products; supplemental health insurance products comprise accidental death, other injury, critical illness, hospital indemnity, medicare supplement, and student health; specialty lines consists of travel, membership, and creditor products; and long term care insurance products for policyholders who require care due to a chronic illness or cognitive impairment. It also offers a range of savings and retirement products and services, including mutual funds, and fixed and variable annuities, savings accounts and investment contracts, segregated funds, guaranteed investment accounts, and single premium immediate annuities, as well as investment advice to individuals. In addition, the company offers employer solutions and pensions, such as retirement plans, pension plans, and pension-related products and services; investment products, including onshore and offshore bonds, and trusts; reinsurance products and solutions to life insurance and financial services companies; general insurance products comprising house, car, and fire insurance; and asset management products and services, including general account assets, unit-linked funds, and third party activities. AEGON N.V. markets its products through independent and career agents, financial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, and specialized financial advisors, as well as through online, direct, and worksite marketing. The company was founded in 1900 and is headquartered in The Hague, the Netherl ands.
- [By Will Ashworth]
Assuming it delivers on its outlook for 2014, its current free cash flow yield is a very enticing 20%. This isn’t a growth stock, but its brands still possess hidden value. As cheap stocks go, it’s very attractive.
Cheap Stocks to Buy: Aegon (AEG)
It’s not often that you can buy a $19 billion market cap for under 10 bucks. Aegon’s a Dutch insurance company that’s had a rough ride over the past few years, and its stock’s suffered as a result. In the late ’90s AEG stock traded around $60 — it hasn’t been anywhere close since. However, it’s got some good assets that should bear fruit in the years to come. Aegon has 12,000 employees in the Americas doing business primarily under the Transamerica brand, which has been a part of AEG since 1999.
Top 10 European Companies To Own In Right Now: Flamel Technologies S.A.(FLML)
Flamel Technologies S.A., a biopharmaceutical company, engages in the development and commercialization of controlled-release therapeutic products based on its proprietary polymer based technology in the United Kingdom, Ireland, the United States, France, and Europe. The company develops nanogel Medusa technology, which is intended to provide controlled release following injection of therapeutic proteins, peptides, and other molecules; a microparticle adaptation of the Medusa platform that is intended for use in the delivery of smaller proteins and peptides; and Micropump technology, a microparticle technology for oral administration of small molecule drugs with applications in controlled-release, taste-masking, and bioavailability enhancement; and Trigger-Lock technology, an adaptation based on Micropump technology, which is intended to minimize the misuse and abuse of medications subject to abuse. Its principal product based on Micropump technology is Coreg CR, which is intended for the treatment of moderate to severe heart failure and left ventricular dysfunction following myocardial infarction. The company?s products under development based upon Medusa technology include Interferon-alpha, a naturally occurring protein that the body uses for the treatment of Hepatitis C virus and as a immune response; and FT-105, an injectable insulin formulation for diabetic patients. Its products based on its Micropump technology comprise LiquiTime for the elderly and pediatric patient patients, or others who have difficulty swallowing. The company has strategic alliance with Baxter International, Inc.; GlaxoSmithKline; Merck Serono; and Pfizer Inc, as well as has a joint development agreement with Digna Biotech, S.L. Flamel Technologies S.A. was founded in 1990 and is headquartered in Venissieux, France.
- [By Anna Prior]
Flamel Technologies SA(FLML) said the U.S. Food and Drug Administration has approved the company’s new drug application for Vazculep, an alpha-1 adrenergic receptor agonist indicated for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. American depositary shares rose 5.1% to $14.78 in premarket trading.
- [By Garrett Cook]
Healthcare shares gained 0.81 percent in the US market on Friday. Top gainers in the sector included Shire plc (NASDAQ: SHPG), StemCells (NASDAQ: STEM), and Flamel Technologies SA (NASDAQ: FLML).
Top 10 European Companies To Own In Right Now: TotalFinaElf S.A.(TOT)
TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.
- [By RichardCox]
Investors looking for exposure in energy stocks without the added risks that accompanies firms that are heavily focused on properties in the Middle East, additional choices can be found in Octagon 88 Resources (OTCQB:OCTX), and France’s Total (TOT). Market valuations at Octagon 88 have yet to match the broader rallies in oil prices, but this could change in coming months as key development projections continue to make progress. Specifically, Octagon’s Peace River will likely add 1.6 billion barrels of oil to the company’s total output potential but the stock price is still trading at the middle of its yearly range, so there is little to suggest that these improvements have been priced into the company’s stock price.
- [By Varun Chandan, Arora]
The Yamal LNG project, which is being developed by Novatek, France’s Total SA (NYSE: TOT ) , and China’s CNPC, already has the required permits. The LNG plant will have three trains with total capacity of 16.5 million tons of LNG per year, with the first LNG train currently scheduled to start-up in late 2017. The main market for LNG will be China.
- [By Ben Levisohn]
Ensco provided an updated fleet status report, which was highlighted by an initial contract for its ultra-deepwater newbuild drillship, Ensco DS-8 (12,000′), expected to begin work for Total (TOT) in Angola during 3Q15 (through 3Q20) at an initial dayrate in the high $610 range (vs. our estimate of $505k/day) with periodic increases equating to an average rate in the mid-$650 range over the 5-year program (ex-mob).
- [By Ben Levisohn]
Howard Weil’s Blake Fernandez explains why he prefers ConocoPhillips to other oil companies like Total (TOT) and Chevron (CVX):
After years of portfolio rationalization, concerns re: dividend coverage, etc. the asset base is now poised to deliver 6- 10% cash flow CAGR through ’17 from a combination of 3-5% production growth and 3-5% margin expansion. Additionally, our confidence in the Company’s unconventional prowess is increasing based on the recent analyst day presentation, higher production targets and efficiency gains in the underlying assets…
Top 10 European Companies To Own In Right Now: British American Tobacco Industries p.l.c.(BTI)
British American Tobacco p.l.c., through its subsidiaries, engages in the manufacture, distribution, and sale of tobacco products. The company offers cigars, cigarettes, smokeless snus, roll-your-own, and pipe tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Viceroy, Kool, Rothmans, Peter Stuyvesant, Benson & Hedges, and State Express 555 brand names. It has operations in the Asia-Pacific, the Americas, eastern and western Europe, Africa, and the Middle East. The company was founded in 1902 and is headquartered in London, the United Kingdom. British American Tobacco p.l.c. operates independently of Remgro Ltd. as of November 03, 2008.
- [By Jayson Derrick]
Reynolds American (NYSE: RAI) announced it will acquire Lorillard (NYSE: LO) for $50.50 in cash and 0.2909 a share of Reynolds, implying a total price tag of $68.88 per share, or $27.4 billion. As part of the deal, British American Tobacco (NYSE: BTI) will maintain its 42 percent stake of Reynolds. Reynolds and British American tobacco also came to terms on sharing technology and development costs on future tobacco products. Reynolds American also said that it will unload Kool, Salem, Winston, Maverick, and blu eCigs brands to Imperial Tobacco for $7.1 billion. Reynolds American said that the deal will be accretive within the first full year with a double-digit accretion rate in the second year and beyond. Shares of Reynolds American lost 6.87 percent, closing at $58.84 while shares of Lorillard lost 10.49 percent, closing at $60.17. Shares of British American Tobacco lost 1.88 percent, closing at $120.61.
- [By Ben Levisohn]
Given the size of a potential acquisition of Lorillard would be quite large, we question how a bid from [Reynolds American] would be financed. Therefore, we think a more likely deal could be a merger between [Lorillard] and [Reynolds American] rather than an acquisition. Also, there has been speculation that British American Tobacco (BTI), which currently owns ~42% of [Reynolds American’s] stock, could take a majority stake in [Reynolds American] after the standstill ends in July 2014. While we believe the most likely scenario is that [British American Tobacco] and [Reynolds American] could reach a strategic partnership to market/sell e-cigs globally, we wouldn’t rule out [British American Tobacco] taking a majority stake in [Reynolds American]. Furthermore, if this occurs, [British American Tobacco] could help finance a potential acquisition of [Lorillard].