Private equity powerhouse Blackstone (NYSE: BX ) has agreed to acquire Credit Suisse’s (NYSE: CS ) Strategic Partners secondary private equity business for an undisclosed sum, the company announced yesterday.
Strategic Partners has $9 billion in assets under management (AUM). At the rule-of-thumb valuation of 2% of AUM, this would suggest the business might have sold for $180 million or more — but the parties are keeping mum on the precise dollar value for now.
What is known is that Credit Suisse has been implementing “strategic divestments” of some of its businesses since last summer, Strategic Partners among them.
Strategic Partners’ business model involves buying secondary interests in private equity funds from other investors who already hold such interests. Since 2000, Strategic Partners has raised more than $11 billion of capital commitments, completed more than 700 transactions, and acquired more than 1,400 underlying limited partnership interests from other parties. Its performance has been in the top quartile among its peers. Strategic Partners is staffed by 26 secondary investment professionals, and headed by Stephen Can and Verdun Perry.
Top 5 Income Stocks To Own Right Now: Tower International Inc.(TOWR)
Tower International, Inc. operates as an integrated global manufacturer of engineered structural metal components and assemblies to automotive original equipment manufacturers. It offers body-structure stampings, frames, and other chassis structures, as well as complex welded assemblies for small and large cars, crossovers, pickups, and sport utility vehicles. The company?s products comprise body structures and assemblies that include structural metal components, such as body pillars, roof rails, and side sills; and Class A surfaces and assemblies that consist of body sides, hoods, doors, fenders, and pickup truck boxes. Tower International, Inc. also provides lower vehicle frames and structures, including pickup truck and SUV full frames, automotive engine and rear suspension cradles, floor pan components, and cross members; body-in-white assemblies, which comprise front and rear floor pan assemblies, and door/pillar assemblies; stamped, formed, and welded suspension com ponents, such as control arms, suspension links, track bars, spring and shock towers, shackles, twist axles, radius arms, stabilizer bars, trailing axles, and brackets; and other automotive products, and defense and aerospace products. It sells its products directly in North America, South America, Europe, and Asia. The company was formerly known as Tower Automotive, LLC and changed its name to Tower International, Inc. in October 2010. Tower International, Inc. was founded in 1993 and is headquartered in Livonia, Michigan.
- [By With assistance from Sofia Horta e Costa]
Tower International Inc. (TOWR), a maker of metal components for the automotive industry, fell 5.1 percent to $20.14 after saying an affiliate of Cerberus Capital Management LP plans to sell about 2.6 million shares in the company.
Top 5 Income Stocks To Own Right Now: United Continental Holdings Inc.(UAL)
United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.
- [By Ben Levisohn]
The reasons range from the significant–its valuation versus peers like Delta Air Lines (DAL) and United Continental (UAL)–to the granular–American Airlines could save “tens of millions” by ending stadium sponsorships.
- [By Ben Levisohn]
Yesterday, American Airlines (AAL) rose 1.9%, while Delta Air Lines (DAL) gained 1.8%, Southwest Airlines (LUV) advanced 0.8% and United Continental (UAL) finished up 0.3%, even as the S&P 500 fell 0.5%.
- [By Ben Levisohn]
The stock market is sinking today, but airline stocks like United Continental (UAL), Delta Air Lines (DAL) and American Airlines (AAL) have taken off.
Peter Smith for the Wall Street Journal
Shares of United Continental have gained 0.4% to $44.53 at 3:11 p.m., while Delta Air Lines has risen 1.5% to $33.21, American Airlines has advanced 0.9% to $36.45 and Southwest Airlines (LUV) is up 0.8% at $23.36. The S&P 500 has dropped 0.6%.
Helping boost airline stocks today: Raymond James analysts Savanthi Syth and James Parker upgraded its stock to Outperform from Market Perform. They explain why:
We are upgrading [United Continental] to Outperform from Market Perform with a $52 target price due to its earnings leverage to robust industry trends, easing competitive pressure at its key hubs, and attractive valuation. Our 1Q14E EPS is lowered from $(0.60) to $(1.00) because of the negative impact of extreme winter weather, particularly at United’s Chicago, Newark, and D.C. hubs. However, we believe investors will look beyond this and focus on strong industry demand, which has led to limited fare sales and two small fare increases in February. Moreover, we believe easing competitive pressure in its hubs should improve unit revenue performance beyond any success United may have in recalibrating its revenue management system. The stronger revenue outlook somewhat offsets the largely one-time weather-related impact in 1Q14.
Morgan Stanley’s John Godyn and Nathan Hong, meanwhile, double down on their thesis that something is different with the airlines this time around:
At a high level, we continue to believe that we’re in an airline bull market supported by two key pillars: (1) an airline macro goldilocks scenario based on the view that fuel prices are likely to trend flat to down while US GDP is upwardly biased favoring domestically levered companies, and (2) belief in the power of industry capacity discipline…Wit
- [By Ben Levisohn]
As a result, shares of American Airlines has dropped 1.2% to $36.11 at 1:54 p.m. today, while United Continental Holdings (UAL) has fallen 2.1% to $44.27 and Delta Air Lines (DAL) is off 1.8% at $33.05.
Top 5 Income Stocks To Own Right Now: Scholastic Corporation(SCHL)
Scholastic Corporation, together with its subsidiaries, operates as a children?s publishing, education, and media company primarily in the United States. The company?s Children?s Book Publishing and Distribution segment publishes and distributes children?s books through school-based book clubs and book fairs, ecommerce, and the trade channel in the United States. Its Educational Publishing segment publishes and distributes educational technology products and services, curriculum materials, children?s books and collections, classroom magazines, and print and online reference and non-fiction products for grades pre-K to 12 to schools and libraries in the United States. The company?s Media, Licensing, and Advertising segment creates and produces programming and digital content for various platforms, including television, DVDs, audio, movies, interactive games, applications, and Websites. This segment produces and sells a television library consisting of approximately 50 0 hal f-hour productions; produces television programming, including the animated series; creates audiovisual adaptations of classic children?s picture books; produces young adult and children?s audio recordings; and creates original and licensed consumer software, including handheld and console products with accessories and mobile applications for grades pre-K to 8. This segment also develops sponsored educational materials and supplementary classroom programs in partnership with government agencies, nonprofit organizations, and business organizations; and operates a direct-to-home catalog business specializing in children?s toys. Its International segment publishes and distributes products and services in Canada, the United Kingdom, Australia, New Zealand, Ireland, India, China, Singapore, and other parts of Asia, as well as includes its export and foreign rights businesses. Scholastic Corporation was founded in 1920 and is headquartered in New York, New York.
- [By Sue Chang]
Scholastic Corp. (SCHL) is forecast to report a loss of 37 cents a share in the fiscal third quarter.
- [By Jon C. Ogg]
Teradyne will replace Scholastic Corp. (NASDAQ: SCHL) in the S&P MidCap 400, and Scholastic will replace Lincoln Education Services Corp. (NASDAQ: LINC) in the S&P SmallCap 600. Lincoln Education Services currently ranks 600th in the S&P SmallCap 600 and is no longer representative of the small cap market space.
- [By Diane Alter]
Dividend Stocks That Increased Payout in September
Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It’s the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company’s consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch’s Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good
- [By Rich Duprey]
Children’s book publisher Scholastic (NASDAQ: SCHL ) announced today its fiscal 2014 first-quarter dividend of $0.125 per share on its Class A and common shares, the same rate it’s paid for the past six quarters.
Top 5 Income Stocks To Own Right Now: Herman Miller Inc.(MLHR)
Herman Miller, Inc. engages in the research, design, manufacture, and distribution of interior furniture systems, products, and related services worldwide. It also provides modular systems under the Action Office, Canvas Office Landscape, Ethospace, Resolve, My Studio Environments, and Vivo Interiors brand names; seating products under the Embody, Aeron, Mirra, Setu, Celle, Equa, and Ergon brand names; and storage products under the Meridian and Tu brand names. In addition, the company offers wooden casegoods under the Geiger brand name; freestanding furniture products under the Abak, Intent, Sense, and Envelop brand name; and ergonomic solutions. It markets its products for office, healthcare, industrial, educational, and residential settings through its sales staff, own dealer network, independent dealers and retailers, and independent contract office furniture dealers, as well as through Internet. The company was founded in 1905 and is based in Zeeland, Michigan.
- [By John Kell and Tess Stynes var popups = dojo.query(“.socialByline .popC”); p]
Herman Miller Inc.(MLHR) said its fiscal third-quarter earnings rose 18% on broad sales growth and stronger margins. The office-furniture company projected fiscal-fourth-quarter results that were mostly higher than expectations. Shares rose 6.2% to $30.50 premarket.
- [By Jake L’Ecuyer]
Shares of Herman Miller (NASDAQ: MLHR) got a boost, shooting up 11.96 percent to $32.14 after the company reported in-line FQ3 adjusted earnings. The company expected Q4 earnings of $0.43 to $0.47 per share on revenue of $485 million to $505 million. However, analysts were projecting earnings of $0.43 per share on revenue of $487.5 million.
- [By Jake L’Ecuyer]
Shares of Herman Miller (NASDAQ: MLHR) got a boost, shooting up 8.92 percent to $31.27 after the company reported in-line FQ3 adjusted earnings. The company expected Q4 earnings of $0.43 to $0.47 per share on revenue of $485 million to $505 million. However, analysts were projecting earnings of $0.43 per share on revenue of $487.5 million.
- [By Wallace Witkowski]
Shares of Herman Miller Inc. (MLHR) rose 6% to $30.44 on moderate volume after the company reported adjusted fiscal third-quarter earnings of 34 cents a share on revenue of $455.9 million. Analysts expected 34 cents a share on revenue of $457.6 million.
Top 5 Income Stocks To Own Right Now: Farmer Brothers Company(FARM)
Farmer Bros. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products. Its product line includes roasted coffee; liquid coffee; and coffee related products, such as coffee filters, sugar and creamers, assorted teas, cappuccino, cocoa, spices, gelatins and puddings, soup, gravy and sauce mixes, pancake and biscuit mixes, and jellies and preserves. The company distributes its products through direct and brokered sales to institutional foodservice establishments, including restaurants, hotels, casinos, hospitals, and foodservice providers, as well as retailers, such as convenience stores, coffee houses, general merchandisers, private label retailers, and grocery stores in the United States. Farmer Bros. Co. was founded in 1912 and is headquartered in Torrance, California.
- [By Eric Volkman]
Farmer Brothers (NASDAQ: FARM ) has a new top financial executive. The company has appointed Mark Nelson to its CFO and treasurer positions, effective April 15. He will initially be assisted by, then replace, interim Treasurer and CFO Jeffrey Wahba.
- [By Laura Brodbeck]
Earnings Releases Expected: Diamond Foods, Inc. (NASDAQ: DMND), Farmer Brothers Company (NASDAQ: FARM) Economic Releases Expected: US Chicago PMI