Treasury yields continue to fall, making mincemeat of the idea that the Federal Reserve will continue to raise interest rates this year. Everything could change, of course, if the incoming economic data turns out to be stronger than expected. The main event for this week: January payrolls, starting with today’s preliminary estimate for the private sector via ADP’s data, followed by Friday’s official numbers from the US Labor Department. Meanwhile, Mr. Market has been slashing rates across the Treasury curve in the wake of revived worries about economic growth.
The 2-year yieldconsidered the most sensitive for rate expectationshas fallen sharply this year, decreasing to a three-month low of 0.75% yesterday (Feb. 2), based on daily data from Treasury.gov. The benchmark 10-year yield’s tumble is even more dramatic, sliding to 1.87%the lowest level since last April.
Top 10 Industrial Disributor Companies To Invest In Right Now: Google Inc.(GOOG)
Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google?s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers And roid, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.
- [By Douglas A. McIntyre]
For all the hundreds of millions of apps and the billions of downloads from the Apple Inc. (NASDAQ: AAPL) App Store and Google Inc.’s (NASDAQ: GOOG) Play, the same apps dominate the top of the lists over and over. Breaking into the app business on a mammoth scale is nearly impossible, unless a company already has an extraordinary presence.
Top 10 Industrial Disributor Companies To Invest In Right Now: EQT Midstream Partners, LP(EQM)
EQT Midstream Partners, LP provides natural gas transmission, storage, and gathering services in southwestern Pennsylvania and northern West Virginia. It owns, operates, acquires, and develops midstream assets in the Appalachian Basin. As of February 4, 2016, the company owned 700 miles and operated an additional 200 miles of interstate pipelines; and owned approximately 1,600 miles of high-and low-pressure gathering lines. It serves local distribution companies, marketers, producers, and commercial and industrial users, as well as natural gas producers. EQT Midstream Services, LLC serves as the general partner of the company. EQT Midstream Partners, LP is headquartered in Pittsburgh, Pennsylvania.
- [By WWW.INVESTOPEDIA.COM]
Companies in the oil storage business can take advantage of what is known as contango, which is when forward prices are higher than current prices, allowing the purchase of cheap oil to be stored and sold at a later date while securing income using derivatives. Five companies that appear to be in a good position to take advantage of reduced oil storage capacity are Magellan Midstream Partners (NYSE: MMP), Enterprise Products Partners (NYSE: EDP), Spectra Energy Partners (NYSE: SEP), Buckeye Partners (NYSE: BPL) and EQT Midstream Partners (NYSE: EQM).
Top Industrial Conglomerate Stocks To Invest In Right Now: American Tower Corporation (REIT)(AMT)
American Tower Corporation is a real estate investment trust. It invests in the real estate markets across the globe. The firm engages in leasing of space on multi-tenant communications sites to wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies and municipalities and tenants in a number of other industries. American Tower Corporation was founded in 1995 and is headquartered in Boston, Massachusetts.
- [By Michael Flannelly]
Before the bell on Monday, analysts at Nomura Securities upgraded telecommunication tower site operator American Tower Corp (AMT) due to an industry wide upgrade of telecom tower operators, including the non-dividend paying companies SAB Comm (SBAC) and Crown Castle (CCI).
The analysts upgraded AMT from “Neutral” to “Buy” and now see shares reaching $90, up from the previous price target of $85. This new price target suggests a 22% upside to the stock’s Friday closing price of $73.71.
“Tower industry revenue grew over 20% in 1H13, helped by strong carrier network spending and tower acquisitions,” Nomura analyst Adam Ilkowitz noted. “On an organic basis, we believe site rental revenue growth of ~11% for the tower operators is a sign of the health of the U.S. wireless industry and elevated capital spending. After 30% portfolio growth in 2012 across the three tower operators, profitability is recovering from diluted levels. Despite a still-tepid global economy, carriers are investing in their networks to respond to consumer demands and traffic growth. With our positive outlook and upwardly revised estimates, we are increasing our target prices for AMT and SBAC both from $85 to $90 and raising AMT to a Buy. We are raising our 2014 AFFO estimates for all three operators given strong activity levels and announced acquisitions.”
Furthermore, the analysts at Nomura lowered AMT’s fiscal 2013 adjusted funds from operations (AFFO) estimates from $3.69 to $3.65, but raised its fiscal 2014 AFFO estimates from $4.25 to $4.50.
American Tower Corp shares were inactive during pre-market trading on Monday. The stock is up 22.83% year-to-date.
- [By Matthew Smith]
The two names which come to mind as potential buyers are American Tower (AMT) and Crown Castle International (CCI) as the assets would be natural for them to purchase. It would be a large transaction though which would be about 1/6th the current market cap of American Tower and 1/4th the size of Crown Castle’s market cap. Another possible buyer could be a hedge fund, and although there are few names out there specializing in this industry, at the end of the day it is a real estate game and all about the leverage and cash flows. Readers should watch this story because if AT&T does in fact sell its towers, it might be set to make a move on the chess board.
Top 10 Industrial Disributor Companies To Invest In Right Now: Pebblebrook Hotel Trust(PEB)
Pebblebrook Hotel Trust, through Pebblebrook Hotel, L.P., operates as a real estate investment trust. The company acquires and invests primarily in hotel properties located in the United States. It holds interests in the Doubletree Bethesda Hotel and Executive Meeting Center located in Bethesda, Maryland; Sir Francis Drake Hotel located in San Francisco, California; and InterContinental Buckhead Hotel located in Atlanta, Georgia. As a REIT, the company is not subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. The company was founded in 2009 and is based in Bethesda, Maryland.
- [By Marshall Hargrave]
The other key benefit for Strategic is that it enjoys industry-leading earnings before interest, taxes, depreciation and amortization (EBITDA) per available room. For 2012, Strategic generated $81 per room of EBITDA. Compare this to top comps LaSalle Hotel (NYSE: LHO) at $74 per room and Pebblebrook Hotel Trust (NYSE: PEB) at $71. The reason for this is that Strategic is much less reliant than its peers on rooms, with much greater exposure to food and beverages. Strategic earns 53% of its revenue from rooms, while its peers get around 66% of revenues from rooms.
Top 10 Industrial Disributor Companies To Invest In Right Now: Chiasma, Inc.(CHMA)
Chiasma, Inc., incorporated on April 12, 2001, is a biopharmaceutical company. The Company is engaged in developing and commercializing oral forms of therapies that are available only by injection. Using its Transient Permeability Enhancer (TPE) technology platform, the Company is developing oral therapies. The Company has completed a Phase III clinical trial of its TPE platform-based product candidate, oral octreotide capsules (trade named as MYCAPSSA) for the treatment of acromegaly, a condition that results in the body’s production of excess growth hormone. Octreotide is an analog of somatostatin, a natural inhibitor of growth hormone secretion.
The Company’s TPE technology enhances the absorption through the intestinal wall of drugs. Using its TPE technology, the Company can transiently and reversibly open the so-called tight junctions between the cells lining the inner intestinal wall, enabling drug molecules to be absorbed intact. Its TPE formulation is a suspension of water-soluble particles containing a precise combination of medium-chain fatty acid salts and drug substance in a fat-soluble medium. The Company is developing octreotide capsules as a liquid-filled solid gelatin capsule formulation, which is intended to be taken over twice a day. The Company has initiated a Phase III multi-center, open-label, baseline-controlled clinical trial to evaluate the safety and efficacy of octreotide capsules in patients with acromegaly who responded to and tolerated treatment with somatostatin analogs. The Company also focuses on developing CH2 for Orphan indication.
- [By Lisa Levin]
Chiasma Inc (NASDAQ: CHMA) was down, falling around 13 percent to $9.51 ahead of the U.S. Food and Drug Administration’s decision on Friday to approve or reject the company’s therapy. The status of its oral treatment for acromegaly, a capsule known as Mycapssa, will be in focus on Friday. The Street’s biotechnology expert Adam Feuerstein stated that an investor source believes the FDA will reject Chiasma’s capsules because data from a single-arm study failed to demonstrate a clinically meaningful benefit among patients.
Top 10 Industrial Disributor Companies To Invest In Right Now: Cummins Inc.(CMI)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
- [By Michael Flannelly]
Early on Wednesday, analysts at both UBS and BMO Capital raised their price targets and earnings estimates on diesel engines manufacturer Cummins Inc. (CMI).
The analysts at UBS raised the numbers on CMI to reflect better growth from market positions and new products. As such, they now see shares of CMI reaching $146, which suggests a 10.6% upside to the stock’s Tuesday closing price of $131.96.
At BMO Capital, the analysts raised CMI’s earnings estimates through 2015 as distribution acquisitions should add to earnings. Furthermore, the analysts rate CMI as “Outperform” and see shares reaching $146 as well.
Cummins shares were down 20 cents, or 0.15%, during pre-market trading on Wednesday. The stock is up 21.79% year-to-date.
- [By Michael Flannelly]
Diesel Engines maker Cummins Inc. (CMI) had its price target and earnings estimates raised by analysts at Jefferies on Thursday, following a positive analyst day.
The analysts rate CMI as “Hold” and now see shares reaching $130, which suggests a slight downside to the stock’s Wednesday closing price of $133.72.
Cummins shares were up 46 cents, or 0.34%, during morning trading on Thursday. The stock is up 23.51% year-to-date.
Top 10 Industrial Disributor Companies To Invest In Right Now: BioCryst Pharmaceuticals Inc.(BCRX)
BioCryst Pharmaceuticals, Inc., a biotechnology company, designs, optimizes, and develops small-molecule pharmaceuticals that block key enzymes involved in infectious diseases, cancer, and inflammatory diseases. It uses structure-based drug design, which incorporates multiple scientific disciplines, including biology, crystallography, medicinal chemistry, and computer to develop new therapeutic candidates. The company has three novel late-stage compounds in development, which include Peramivir, a neuraminidase inhibitor for the potential treatment of influenza; BCX4208, a purine nucleoside phosphorylase (PNP) inhibitor for gout; and Forodesine, a PNP inhibitor for cutaneous T-cell lymphoma (CTCL) and chronic lymphocytic leukemia (CLL). Peramivir is being developed under a contract from the Biomedical Advanced Research and Development Authority within the United States Department of Health and Human Services. Forodesine has been granted orphan drug status by the FDA for thr ee indications, which include T-cell non-Hodgkin?s lymphoma, including CTCL; CLL and related leukemias, including T-cell prolymphocytic leukemia, adult T-cell leukemia, and hairy cell leukemia; and for treatment of B-ALL. The FDA has also granted fast track status to the development of forodesine for the treatment of relapsed or refractory T-cell leukemia, and special protocol assessment from the FDA for forodesine to conduct a pivotal clinical trial in CTCL with an oral formulation. The company announced the initiation of a Phase 2b study of BCX4208 as add-on therapy in gout patients who have not responded to allopurinol therapy alone. BioCryst Pharmaceuticals utilizes crystallography and structure-based drug design to discover additional compounds and to progress others through pre-clinical and early development to address the unmet medical needs of patients and physicians. The company was founded in 1986 and is headquartered in Durham, North Carolina.
- [By Monica Gerson]
BioCryst Pharmaceuticals (NASDAQ: BCRX) shares gained 5.98% to $6.91 in the pre-market session after the company has been awarded contract by the National Institute of Allergy and Infectious Diseases to develop BCX4430 for the treatment of Marburg virus disease.
Top 10 Industrial Disributor Companies To Invest In Right Now: Territorial Bancorp Inc.(TBNK)
Territorial Bancorp Inc. operates as the bank holding company for Territorial Savings Bank, a federally-chartered savings bank that provides a range of financial services to individuals, families, and businesses in Hawaii. It involves in accepting deposits from the general public and investing those deposits together with funds generated from operations and borrowings in loans and investment securities. The company?s deposit products include passbook and statement savings accounts, certificates of deposits, money market accounts, commercial and regular checking accounts, and NOW accounts. Its loan products include one-to-four-family residential mortgage loans; home equity loans and lines of credit; construction, commercial, and other non-residential real estate loans; consumer loans; and multi-family mortgage loans. The company, through its subsidiary, Territorial Financial Services, Inc., also engages in insurance agency activities. In addition, it provides various non-d eposit investments, including annuities and mutual funds through a third-party broker-dealer. As of December 31, 2010, the company operated 26 full-service branch offices in Hawaii. The company was founded in 1921 and is headquartered in Honolulu, Hawaii.
- [By Lisa Levin]
Territorial Bancorp (NASDAQ: TBNK) shares touched a new 52-week low of $21.31. Territorial Bancorp shares have dropped 9.43% over the past 52 weeks, while the S&P 500 index has gained 16.18% in the same period.
Top 10 Industrial Disributor Companies To Invest In Right Now: J.M. Smucker Company (The)(SJM)
The J. M. Smucker Company manufactures and markets branded food products worldwide. It operates through four segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; U.S. Retail Pet Foods; and International, Foodservice, and Natural Foods. The company provides various consumer food and beverage products, including coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, pickles, condiments, grain products, and nut mix products; and pet products comprising dry and wet dog food, dry and wet cat food, dog snacks, and cat snacks. It markets its products under the Folgers, Dunkin Donuts, Smuckers, Jif, Crisco, Pillsbury, Uncrustables, Douwe Egberts, Folgers Gourmet Selections, Millstone, Cafe Bustelo, Cafe Pilon, K-Cup, Adams, Laura Scudders, Hungry Jack, Eagle Brand, Magnolia, Robin Hood, Five Roses, Santa Cruz Organic, R. W. Knudsen Family, truRoots, Meow Mix, Milk-Bone, Kibbles n Bits, Natural Balance, 9Lives, Pup-Peroni, Gravy Train, and Natures Recipe brand names. The company sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, and pet specialty stores; and through retail channels, foodservice distributors and operators, and natural foods stores and distributors. The J. M. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.
- [By Ben Levisohn]
Shares of JM Smucker (SJM) are getting pounded today after the food company beat earnings forecasts but missed on revenue. Susquehanna’s Pablo Zuanic doesn’t recommend using JM Smucker’s weakness as an opportunity to buy shares:
The sales miss today (worth 7c of EPS) is troubling as it shows the Big Heart pet food business (1/3 of SJM post acquisition) has significant gaps (mass premium, independent specialty) and is not sustaining growth in the areas that were supposed to drive growth in the first place (pet snacks, sales in the specialty channel); and the other half (wet/dry pet food) faces ongoing price pressures. All this raises the risk that a larger share of BH synergies may eventually need to be reinvested. On the other hand, coffee was not as bad as the fiscal 1Q17 numbers implied; pipeline fill comps were hefty, and although underlying trends are slowing, this is nowhere as bad as what the headline reported numbers indicate. Despite cutting total company sales guidance, SJM management left EPS guidance unchanged (lower input costs, lower tax rate). We have slightly lowered our already below consensus sales estimates, but have increased coffee margin assumptions, so actually our EPS goes t o $7.54 from $7.52, up but still below guidance of $7.60-7.75. Our price target remains at $139 by Dec16. Our proper apples-to-apples comps, taking the intraday price of $143.80, SJM trades at a -8% discount to peers, while we think a 5-10% discount would be more warranted (our PT takes -10% given increased risk and blurred visibility). We think coffee margins for FY16 are abnormal and do not expect them to be sustained in FY18; by the same token, we see downside risk by then in pet food margins.
Citigroup’s David Driscoll and Cornell Burnette call the selloff “overdone.” They explain why:
SJM shares are down -8% following the firms F1Q17 report, in which SJM beat consensus EPS ests by +
Top 10 Industrial Disributor Companies To Invest In Right Now: Cinemark Holdings Inc(CNK)
Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.
- [By Monica Gerson]
Cinemark Holdings, Inc. (NYSE: CNK) is projected to report its quarterly earnings at $0.46 per share on revenue of $699.23 million.
Aecom (NYSE: ACM) is expected to report its quarterly earnings at $0.72 per share on revenue of $4.55 billion.