With second-quarter earnings season picking up stream, Valero Energy (NYSE: VLO ) posted a tumultuous drop in year-over-year net income, but the refiner still beat analyst estimates with normalized earnings of $0.96 per share. With the United States’ WTI crude benchmark closing the gap with the international Brent crude price, U.S. refiners are looking for new competitive advantages, and Valero is starting to make solid inroads. Check out the video below for more information on Valero’s second quarter and see which direction the company is moving.
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Top 10 Prefered Companies To Own For 2016: Silver Spring Networks Inc (SSNI)
Silver Spring Networks, Inc., incorporated on July 3, 2002, provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. The Company’s networking platform provides two-way communications between the utility back office and devices on the power grid. In addition to its networking platform, it offers a suite of solutions that run on top of its network and complementary services, all of which is referred to as its Smart Energy Platform Its service offerings include professional services to implement its products, managed services and software as a service ( SaaS), to assist utilities with managing the network and solutions, and ongoing customer support. Its Smart Energy Platform consists of hardware, software and services and combines with devices manufactured by third-party partners to form end-to-end smart grid offerings.
The Company’s solutions include advanced metering, which allows u tilities to automate a number of manual processes and improve operational efficiencies, offer flexible pricing programs to consumers, and improve customer service with faster outage detection and restoration; distribution automation, which provides utilities with real-time visibility into the health of the grid, enabling better management and control of power distribution assets to improve grid reliability, and demand-side management, which enables utilities to offer consumers a variety of programs and incentives to use energy more efficiently and reduce usage at times of peak demand. The Company markets its Smart Energy Platform directly to utilities around the world. The Company’s network is composed of its hardware, such as access points and relays, its UtilOS network operating system, and GridScape software suite, which together provide utilities the ability to communicate with and control devices connected to the power grid.
The Company also offers a sui te of solutions that run on top of its network, including ad! vanced metering, distribution automation, and demand-side management. These solutions include additional hardware, such as its communications modules and bridges, and applications from UtilityIQ and CustomerIQ software. Its solutions combine with devices from the large number of third parties with whom it collaborates to form end-to-end smart grid offerings built on its network. In addition, itoffers a range of services that enable its utility customers to deploy, operate and maintain its networking platform and solutions. These service offerings include professional services to implement its products, managed services and SaaS to assist utilities with managing the network and solutions, and ongoing customer support.
- [By Jake L’Ecuyer]
Equities Trading DOWN
Shares of Silver Spring Networks (NYSE: SSNI) were down 23.66 percent to $17.91 after the company issued downbeat Q4 forecast. Credit Suisse downgraded the stock from Outperform to Neutral and cut the price target from $26.00 to $23.00.
- [By Roberto Pedone]
A technology stock that’s quickly moving within range of triggering a big breakout trade is Silver Spring Networks (SSNI), which provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. This stock has been on a hot streak over the last six months, with shares up by 22%.
If you look at the chart for Silver Spring Networks, you’ll notice that this stock has been uptrending strong for the last month and change, with shares moving higher from its low of $14.63 to its recent high of $22 a share. During that uptrend, shares of SSNI have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SSNI within range of triggering a big breakout trade.
Traders should now look for long-biased trades in SSNI if it manages to break out above some near-term overhead resistance levels at $22 to $22.73 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 491,731 shares. If that breakout triggers soon, then SSNI will set up to re-test or possibly take out its next major overhead resistance levels at $23.90 to its gap down day high from August at $25.25 a share. Any high-volume move above $25.25 a share will then give SSNI a chance to re-fill some of that previous gap down zone that started near $32 a share.
Traders can look to buy SSNI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $19.01 a share, or near $18 a share. One can also buy SSNI off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top 10 Prefered Companies To Own For 2016: Vivo Participacoes S.A.(VIV)
Telecomunicacoes de Sao Paulo S.A.-TELESP provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Its services include local voice services, such as activation, monthly subscription, measured service, and public telephones; intraregional, interregional, and international long-distance voice services; data services comprising broadband services; pay TV services through direct to home satellite technology and land based wireless technology multichannel multipoint distribution service; and network services, such as interconnection and rental of facilities, as well as other services consisting of extended maintenance, caller identification, voice mail, cell phone blockers, computer support, and antivirus for Internet service subscribers. The company also offers multimedia communication services, such as audio, data, voice and other sounds, images, and texts and other information. In addition, it provides interc onnection services to cellular service providers and other fixed telecommunications companies through the use of its network. Further, the company offers telecommunications solutions and IT support designed to address the needs and requirements of companies operating various types of industries, including retail, manufacturing, services, financial institutions, and government. Telecomunicacoes de Sao Paulo S.A.-TELESP provides its products and services through person-to-person sales, telesales, indirect channels, Internet, and door-to-door sales. As of December 31, 2010, its telephone network included 11.3 million fixed lines in service, including residential, commercial, and public telephone lines; 3.3 million broadband clients; and 0.5 million pay TV clients. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil. Telecomunicacoes de Sao Paulo S.A.-TELESP is a subsidiary of Telefonica S.A.
- [By Vera Yuan]
Vivendi SA (0.4%) (VIV) (VIV – $24.47 – NYSE) is a French media and telecommunications holding company in the late stages of a decade long transition. In April 2014, the company announced it had reached an agreement to sell its French wireless operation, SFR, to French cable operator Numericable. Over the last year, the company also sold most of its 62% stake in Activision Blizzard and reached an agreement to sell its entire 53% stake in Maroc Telecom SA. After closing the SFR sale in early 2015, Vivendi will be a more focused media firm, consisting of Canal+ (a Francophone focused pay television network owner and distributor), Universal Music Group (UMG), the number one recording music company and number two music publishing entity in the world, and GVT, a fast growing Brazilian broadband and pay television provider. We expect GVT to eventually be sold and would not dismiss the possibility of a breakup of Canal+ and UMG. While operating conditions have been challenging i n most of Vivendi’s businesses, it appears their trajectory is finally turning more positive and should be supported by a healthier balance sheet after the SFR, Activision and Maroc disposals.From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.Also check out: Mario Gabelli Undervalued Stocks Mario Gabelli Top Growth Companies Mario Gabelli High Yield stocks, and Stocks that Mario Gabelli keeps buying Currently 0.00/512345
Rating: 0.0/5 (0 votes)
- [By Mike Deane]
Telefonica Brasil SA (VIV) reported its first quarter earnings before the opening bell on Friday, posting slightly higher revenues and much lower earnings compared to last year’s first quarter.
VIV’s Earnings in Brief
Telefonica Brasil reported first quarter revenues of 8.6 billion reals, up from last year’s Q1 revenues of 8.56 billion reals. Net earnings for the quarter came in at 660.8 million reals, down from 810.2 million reals reported for last year’s Q1. Analysts were expecting earnings of 746 million reals. According to Reuters, the company also warned that the World Cup, which is taking place in Brazil this summer, could end up dragging down earnings.
Telefonica Brasil did not mention any changes to its dividend in its first quarter earnings release. Currently, the company has an annualized dividend of $1.13.
VIV stock was inactive in pre-market trading. YTD, the company’s stock is up 13.33%.
VIV Dividend Snapshot
As of Market Close on May 8, 2014
Click here to see the complete history of VIV dividends.
- [By Vanina Egea] rket share reduce to 25.13% in March from 25.28% in February, Telefonica Brasil’s share grew from 28.62% to 28.68% in the same period. Furthermore, while average revenue per user in the mobile sector has fallen for five consecutive years, the firm’s mobile unit Vivo was the only carrier to generate ARPU growth in 2013.
On the fixed-line side, although total revenue fell 3.7% year over year, the company expects to resume growth in this segment through the expansion of video, broadband Internet and Pay-TV services. To this aim, the firm launched its IPTV platform in late 2013 and is growing its FTTH footprint. Along these lines, it will invest 18% to 19% of its revenue in deploying high-speed fiber optic cable in the state of Sao Paulo in order to cover 2.5 households in 2014. Thus, the company will be better positioned to compete with giants like cable operator Net Servicos de Comunicacao SA (NETC), which also offers bundled services and has aggressively expanded its Internet and TV subscriber base in the state.
Investing for Long-term Growth
Looking forward, Telefónica Brasil is investing in technology and network expansion to further empower its competitive position. The firm is expanding its 3G network based on CDMA EV-DO and HSPA technologies, which provide a great advantage over its peers. Further, it expects to benefit from the growth opportunities in the 4G market. Consequently, it has signed a deal with Ceragon Networks Ltd. (CRNT) to deploy the superfast 4G network nationwide.
A Valuable Stock
Telefónica Brasil has a healthy balance sheet with strong cash flow generation (up to 9,576 million in 2013 from 3,488 million in 2011) and reasonable debt levels. Its net debt-to-EBITDA ratio is of 0.17 times and it has a debt- to-equity ratio of 0.2 against its peers’ average of 0.9. Its financial strength and a robust dividend have attracted investment gurus like Charles Brandes (Trades, Portfolio) and David Dreman (Trades,
Top 10 Prefered Companies To Own For 2016: POWERSHARES DYNAMIC BLDG & CONSTR PORT (PKB)
PowerShares Dynamic Building & Construction Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Building & Construction Intellidex Index (the Building & Construction Intellidex). The Building & Construction Intellidex consists of stocks of 30 United States building and construction companies. These are companies that are primarily engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports. These companies may also include manufacturers of building materials for home improvement and general construction projects, and specialized machinery used for building and construction; companies that provide installation/maintenance/repair work, and land developers. Stocks are selected principall y on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex Provider) pursuant to an Intellidex methodology. The Fund’s investment advisor is PowerShares Capital Management LLC.
The Fund, using an indexing investment approach, attempts to replicate the performance of the Building & Construction Intellidex. The Fund generally will invest in all of the stocks comprising the Building & Construction Intellidex in proportion to their weightings in the Building & Construction Intellidex. The Fund will normally invest at least 80% of its total assets in common stocks of building and construction companies. It will normally invest at least 90% of its total assets in common stocks that comprise the Building & Construction Intellidex.
- [By John Udovich]
Small cap building materials stock NCI Building Systems Inc (NYSE: NCS) fell yesterday after announcing a share offering plus its investors have (so-far) missed out on any “recovery” in construction – meaning it might be time to take a closer look at the stock along with potential performance benchmarks like the PowerShares Dynamic Building & Construction ETF (NYSEARCA: PKB) and the First Trust ISE Global Engineering and Construction Index Fund ETF (NYSEARCA: FLM) – both of which have had decent returns in recent years.
Top 10 Prefered Companies To Own For 2016: Century Peak Metals Holdings Corp (CPM)
Century Peak Metals Holdings Corporation is engaged in promoting, operating, managing, holding, acquiring or investing in corporations or entities that are engaged in mining activities or mining-related activities. It also invests in real estate development and energy. Its subsidiaries include Century Peak Corporation (CPC), Century Hua Guang Smelting Incorporated (CHGSI), Century Sidewide Smelting Inc. (CSSI) and Century Summit Carrier, Inc. (CSCI). The principal activities of CPC is to invest in and engage in the business of operating and mining of mineral resources in the Philippines, such as iron ore, copper, gold, silver, lead, manganese, chromites, nickel etc. and prospecting, exploring, milling, concentrating, converting, smelting, treating, refining and manufacturing, and preparing for the market. Advisors’ Opinion:
- [By kcpl]
Corning is focusing on its growth strategies. Management had already discussed in the previous quarter that it plans to quickly integrate Corning Precision Materials (CPM) in Korea in order to realize synergies, gain further cost advantages, and increase its flexibility of glass supply. The company completed its acquisition of CPM in the first quarter. As a result of this acquisition, its display sales improved 55% to $1 billion.
Top 10 Prefered Companies To Own For 2016: Durata Therapeutics Inc (DRTX)
Durata Therapeutics, Inc., incorporated on November 4, 2009, is a pharmaceutical company focused on the development and commercialization of therapeutics for patients with infectious diseases and acute illnesses. The Company enroll and dose patients in two global Phase III clinical trials with its product candidate, dalbavancin, for the treatment of patients with acute bacterial skin and skin structure infections (abSSSI). Dalbavancin is an intravenous antibiotic product candidate designed for once-weekly dosing. In addition to abSSSI, the Company focuses on the development of dalbavancin for additional indications, including osteomyelitis, diabetic foot infection and pneumonia.
As of December 31, 2011, Dalbavancin had already completed three Phase III clinical trials, in which more than 1,000 patients in total received dalbavancin. Dalbavancin achieved its primary efficacy endpoint of non-inferiority in each of these three completed Phase III clinical trials when compared to linezolid, cefazolin or vancomycin, three of the standard-of-care agents for uncomplicated skin and skin structure infections (uSSSI), and complicated skin and skin structure infections (cSSSI). Its two ongoing Phase III clinical trials are designed to compare dalbavancin to vancomycin, with an option to switch to oral linezolid, under the new FDA draft guidance.
The Company competes with Pfizer, Cubist Pharmaceuticals, Inc., Theravance, Inc., Forest Laboratories, Inc., Sanofi-Aventis Ltd., The Medicines Company, Trius Therapeutics, Inc., Cempra, Inc., Rib-X Pharmaceuticals, Inc., Paratek Pharmaceuticals, Inc., Nabriva Therapeutics AG, Tetraphase Pharmaceuticals, Inc. and Furiex Pharmaceuticals, Inc.
- [By Lisa Levin]
Durata Therapeutics (NASDAQ: DRTX) shares climbed 5.30% to $14.18. The volume of Durata Therapeutics shares traded was 861% higher than normal. The FDA Advisory Committee unanimously recommended the approval of Durata’s Dalvance.
- [By Bob’s Stocks]
Durata Therapeutics (DRTX) is developing Dalbavancin, a once a week, intravenous antibiotic product candidate, for the treatment of patients with acute bacterial skin and skin structure infections, or ABSSSI. The company is expected to file a NDA (New Drug Application) at any moment and MAA (Marketing Authorization Application) at the end of 2013.
Top 10 Prefered Companies To Own For 2016: TransAtlantic Petroleum Ltd (TAT)
TransAtlantic Petroleum Ltd. is an international oil and gas company engaged in the acquisition, exploration, development and production of crude oil and natural gas. The Company holds interests in developed and undeveloped oil and gas properties in Turkey, Bulgaria and Romania. As of March 1, 2012, it held approximately 5.4 million net onshore acres. As of March 1, 2012, it was producing an aggregate of approximately 2,638 net barrels of oil per day. As of March 1, 2012, it held interests in 57 onshore exploration licenses and nine onshore production leases covering a total of 5.3 million gross acres in Turkey. On February 18, 2011, the Company’s wholly owned subsidiary TransAtlantic Worldwide, Ltd. acquired Direct Petroleum Morocco, Inc. and Anschutz Morocco Corporation and its wholly owned subsidiary TransAtlantic Petroleum Cyprus Limited. On June 7, 2011, TransAtlantic Worldwide acquired Thrace Basin Natural Gas (Turkiye) Corporation. Advisors’ Opinion:
- [By CRWE]
TransAtlantic Petroleum Ltd. (Amex:TAT) reported that the Turkish Competition Authority has approved the Company’s sale of its oilfield services business to Dalea Partners, LP (“Dalea”, an affiliate of N. Malone Mitchell, 3rd, the Company’s Chairman and Chief Executive Officer).
Top 10 Prefered Companies To Own For 2016: The Middleby Corporation (MIDD)
The Middleby Corporation, through its subsidiaries, engages in the design, manufacture, and sale of commercial foodservice and food processing equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America. The company?s Commercial Foodservice Equipment Group segment manufactures cooking equipment for restaurants and institutional kitchens. Its product line comprises conveyor ovens, ranges, steamers, convection ovens, combi-ovens, broilers and steam cooking equipment, induction cooking systems, baking and proofing ovens, griddles, char broilers, catering equipment, fryers, toasters, hot food servers, food warming equipment, and coffee and beverage dispensing equipment. These products are sold and marketed under the brand names of Anets, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, CTX, Carter-Hoffmann, CookTek, Doyon, Frifri, Giga, Holman, Houno, Jade, Lang, MagiKitch?n, Middleby Marshall, Nu-Vu, Pitco, PerfectFry, Southbend, Star, Toastm aster, TurboChef, and Wells. In addition, this segment involves in sales, distribution, and export management activities internationally through independent manufacturing representatives and a combined network of independent and company-owned distributors. The Middleby?s Food Processing Equipment Group segment manufactures preparation, cooking, packaging, and food safety equipment for the food processing industry. Its principal products include batch ovens, belt ovens, and conveyorized cooking systems sold under the Alkar brand name; grinding, slicing, emulsification, mixing, and blending products under the Cozzini brand name; breading, battering, mixing, slicing, and forming equipment sold under the MP Equipment brand name; and packaging and food safety equipment sold under the RapidPak brand name. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The Middleby Corporation was founded in 1888 and is ba s ed in Elgin, Illinois.
- [By Ben Levisohn]
Shares of Manitowoc have plunged 10% to $19.29 at 1:39 p.m.–and pulled down the shares of its competitors as well. Machinery manufacturer Terex (TEX) has fallen 3.6% to $28, while cooking-equipment maker Middleby (MIDD) has dropped 5% to $82.51.
- [By Lawrence Meyers]
Diller then spins off some of these entities into public companies, as he did with Home Shopping Network (HSNI) and timeshare company Interval Leisure Group (IILG). The company’s 52 week high was $80.64, it trades right now at $66. I’d love to make this one of my stocks to buy in the below the $50 mark, but IACI would be a bargain under $55.
Middleby Corporation (MIDD)
Middleby Corporation (MIDD) started as an oven company in 1888. Over its history, it has expanded into a global food service, processing, and residential kitchen equipment manufacturer and distributor.
Top 10 Prefered Companies To Own For 2016: General American Investors Inc. (GAM)
General American Investors Company, Inc. is a self management investment trust. The firm invests in the public equity markets across the globe. It employs a fundamental analysis with a bottom-up stock picking approach. General American Investors Company, Inc. was founded in 1927 and is based in New York, New York.
- [By GuruFocus]
General American Investors Co. Inc. (GAM): President & CEO Jeffrey W Priest Bought 14,000 Shares
President & CEO of General American Investors Co. Inc. (GAM) Jeffrey W Priest bought 14,000 shares on 01/29/2014 at an average price of $33.53. General American Investors Co. Inc. has a market cap of $932.500 million.
Top 10 Prefered Companies To Own For 2016: San Miguel Brewery Hong Kong Ltd (MBR)
San Miguel Brewery Hong Kong Limited is a Hong Kong-based company engaged in the manufacture and distribution of bottled, canned and draught beers. The Company operates in two segments: The Hong Kong operation mainly represents the manufacture and distribution of own brewed beer products and distribution of imported beer products in Hong Kong and overseas, and the mainland China operation mainly represents the manufacture and distribution of own brewed beer products in the southern part of the People’s Republic of China and overseas. Its subsidiaries include Best Investments International Inc., Hongkong Brewery Limited, Ravelin Limited, San Miguel (Guangdong) Limited, Guangzhou San Miguel Brewery Company Limited, San Miguel Shunde Holdings Limited and San Miguel (Guangdong) Brewery Company Limited. Advisors’ Opinion:
- [By Geoffrey Seiler]
This was a solid quarter from Aetna, highlighted by much stronger-than-expected results from its Commercial and Medicaid segments. The rebound in the Medicaid medical benefits ratio (MBR) was particularly notable.
Top 10 Prefered Companies To Own For 2016: Covanta Holding Corp (CVA)
Covanta Holding Corporation (Covanta), incorporated in April 16, 1992, is a holding company. The Company is a owner and operator of infrastructure for the conversion of waste to energy ( energy-from-waste or EfW), as well as other waste disposal and renewable energy production businesses. Covanta conduct all of its operations through subsidiaries which are engaged predominantly in the businesses of waste and energy services. The Company has one segment which is Americas and consists of waste and energy services operations primarily in the United States and Canada. The Company owns and holds interests in energy-from-waste facilities in China and Italy. The Company also has investments in subsidiaries engaged in insurance operations in California, primarily in property and casualty insurance. In 2011, it sold two landfill gas projects located in California. In May 2011, it acquired a metals processing facility located on its Dade energy-from-waste facility site.
< p>As of December 31, 2011, it owned 85% interest of Taixing Covanta Yanjiang Cogeneration Co., Ltd. It operates and maintains the energy-from-waste facility located in and owned by the City and County of Honolulu, Hawaii. In December 2011, the Company amended the waste disposal agreement with the Union County Utilities Authority to extend their terms from 2023 to 2031 and to increase the Union County Utilities Authority’s waste disposal commitment. The Company’s EfW facilities earn revenue from both the disposal of waste and the generation of electricity, generally under long-term contracts, as well as from the sale of metal recovered during the energy-from-waste process. In the Americas, it processes approximately 19 million tons of solid waste annually. In total, these assets produce over 10 million megawatt hours of baseload electricity annually. The Company operates and/or has ownership positions in 46 energy-from-waste facilities, which are primarily located in Nort h America, and 15 additional energy generation facilities, i! ncluding other renewable energy production facilities in North America (wood biomass and hydroelectric). The Company also operates a waste management infrastructure that is complementary to its core EfW business.
Energy-from-waste projects have two purposes: to provide waste disposal services, typically to municipal clients who sponsor the projects, and to use that waste as a fuel source to generate renewable energy. The electricity or steam generated by the projects is generally sold to local utilities or industrial customers. The projects are capable of providing waste disposal services and generating electricity or steam. The Company provides these waste disposal services and sell the electricity and steam generated under contracts, which expire on various dates between 2012 and 2034. Many of its service contracts may be renewed for varying periods of time, at the option of the municipal client.
Tehe Compan y’s energy-from-waste projects generate revenue from three main sources: fees charged for operating projects or processing waste received; the sale of electricity and/or steam, and the sale of ferrous and non-ferrous metals that are recycled as part of the energy-from-waste process. Its customers for waste disposal or facility operations are principally municipal entities, though it also markets disposal capacity at certain facilities to commercial and special waste customers. Its facilities sell energy primarily to utilities at contracted rates or, in situations where a contract is not in place, at prevailing market rates in regional markets (primarily PJM, NEPOOL and NYISO in the Northeastern United States).
The Company operates, and in some cases has ownership interests in, transfer stations and landfills, which generate revenue from ash disposal fees or operating fees. In addition, it owns, and in some cases operates, other renewable energy projects in the Americas segment, which generate electricity from wood wast! e (biomas! s) and hydroelectric resources. The electricity from these other renewable energy projects is sold to utilities under contracts or into the regional power pool at short-term rates. For these projects, it receives revenue from sales of energy, capacity and/or cash from equity distributions and additional value from the sale of renewable energy credits.
The Company operates energy-from-waste projects in 16 states and one Canadian province, and are constructing an energy-from-waste project in a second Canadian province. Most of its energy-from-waste projects were developed and structured contractually as part of competitive procurement processes conducted by municipal entities. Its EfW projects can generally be divided into three categories, based on the applicable contract structure at a project: Tip Fee projects, Service Fee projects that the Company owns, and Service Fee projects that it do not own but operate on behalf of a municipal owner. At Tip Fee projects , it receives a per-ton fee for processing waste, and it typically retain all of the revenue generated from energy and recycled metal sales. The Company generally owns or leases the Tip Fee facilities. At Service Fee projects, it typically charge a fixed fee for operating the facility, and the facility capacity is dedicated either primarily or exclusively to the host community client, which also retains the majority of any revenue generated from energy and recycled metal sales. The Company also owns and/or operates 13 transfer stations and four ash landfills in the northeast United States, which it utilizes to supplement and manage more efficiently the fuel and ash disposal requirements at its energy-from-waste operations. The Company provides waste procurement services to its waste disposal and transfer facilities which have available capacity to receive waste.
The Company owns and operates seven wood-fired generation facilities a nd have a 55% interest in a partnership which owns another w! ood-fired! generation facility. The Company’s six facilities are located in California, and two are located in Maine. The combined gross energy output from these facilities is 191 megawatts. The Company generates income from its biomass facilities from sales of electricity, capacity, and where available, additional value from the sale of renewable energy credits. These facilities sell their energy output into local power pools or to local utilities at rates that are either fixed or float with the market.
The Company owns a 50% interest in two small run-of-river hydroelectric facilities located in the State of Washington, which sells energy and capacity to Puget Sound Energy under long-term energy contracts. The Company has a nominal investment in two hydroelectric facilities in Costa Rica.
The Company and Chongqing Iron & Steel Company (Group) Ltd. entered into an agreement to build, own, and operate a 1,800 metric ton per day energy-from-waste facility for Chengdu Municipality in Sichuan Province, People’s Republic of China. The Company also executed a 25 year waste concession agreement for this project. In connection with this project, it acquired a 49% interest in the project company. Construction commenced in 2009 and the facility began processing waste during the year ended December 31, 2011. The electrical output from these projects is sold at governmentally established preferential rates under short-term arrangements with local power bureaus. As of December 31, 2011, the Company owned 85% of Taixing Covanta Yanjiang Cogeneration Co., Ltd. which, in 2009, entered into a 25 year concession agreement and waste supply agreements to build, own and operate a 350 metric tons per day energy-from-waste facility for Taixing Municipality, in Jiangsu Province, People’s Republic of China. The Company will continue to operate its coal-fired facility.
The Comp any owns a 40% interest in Chongqing Sanfeng Covanta Environ! mental In! dustry Co., Ltd. (Sanfeng), a company located in Chongqing Municipality, People’s Republic of China. Sanfeng is engaged in the business of owning and operating energy-from-waste projects, providing design and engineering, procurement, construction services and equipment sales for energy-from-waste facilities in China. Sanfeng owns minority interests in two 1,200 metric tons per day, 24 megawatts mass-burn energy-from-waste projects (Fuzhou project and Tongqing project), and has a contract to operate the Chengdu project. Chongqing Iron & Steel Group Environmental Investment Co. Ltd., a wholly owned subsidiary of Chongqing Iron & Steel Company (Group) Ltd., holds the remaining 60% interest in Sanfeng. The solid waste supply for the projects comes from municipalities under long-term contracts. The municipalities also have the obligation to coordinate the purchase of power from the facilities as part of the long-term contracts for waste disposal. The electrical output from the se projects is sold at governmentally established preferential rates under short-term arrangements with local power bureaus.
The Company owns a 13% interest in a 500 metric tons per day, 18 megawatts mass-burn energy-from-waste project at Trezzo sull’Adda in the Lombardy Region of Italy. The project is operated by Ambiente 2000 S.r.l., in which the Company owns 40%. The solid waste supply for the project comes from municipalities and privately-owned waste haulers under long-term contracts. The electrical output from the Trezzo project is sold at governmentally established preferential rates under a long-term purchase contract to Italy’s state-owned electricity grid operator, Gestore della Rete di Trasmissione Nazionale S.p.A.
Independent Power Projects
The Company has a majority interest in a 24 megawatts (gross) coal-fired cogeneration facility in Taixing City, Jiangsu Province, People’s Republic of China. The project entity, in which it holds a majority interest, operates this project. T! he party ! holding a minority position in the project is an affiliate of the local municipal government. While the steam produced at this project is focused to be sold under a long-term contract to its industrial host, in practice, steam has been sold on a short-term basis to either local industries or the industrial host, in each case at varying rates and quantities. The electric power is sold at an average grid rate to a subsidiary of the provincial power bureau.
- [By Marc Bastow]
Waste disposal and energy management holding company Covanta (CVA) raised its quarterly dividend 9% to 18 cents per share, payable April 2 to shareholders of record as of March 26.
CVA Dividend Yield: 4.10%
- [By Dan Caplinger]
More recently, Waste Management has looked for further innovations in its business. Its landfills give it two potential energy sources, one from the gases that landfills produce, and a second from incinerating garbage to produce electricity. Rival Covanta (NYSE: CVA ) pioneered the waste-to-energy movement and is the leading company in the space, but both Waste Management and No. 2 landfill operator Republic Services (NYSE: RSG ) have pressed hard at building up their own renewable energy businesses. Moreover, Waste Management’s partnership with Clean Energy Fuels (NASDAQ: CLNE ) to convert its hauling trucks to use natural gas brings the trash giant’s renewable energy efforts full-circle.
- [By Seth Jayson]
Covanta Holding (NYSE: CVA ) reported earnings on July 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Covanta Holding beat expectations on revenues and beat expectations on earnings per share.
- [By Ian Wyatt, Publisher & Chief Investment Strategist, Wyatt Investment Research]
Both of these stocks are overlooked, undervalued, and cash flow machines. The companies are Ascent Capital Group (ASCMA) and Covanta Holdings (CVA).