Related LXU Mid-Day Market Update: Yelp Surges On Upbeat Results; Square Shares Decline LSB Industries: Nearing The Gate Of El Dorado? LSB Industries added to Conviction List at Avondale; shares +32% (Seeking Alpha) Related FOE Benzinga's M&A Chatter for Tuesday March 15, 2016 Benzinga's Volume Movers Ferro spikes on report it is considering a sale (Seeking Alpha)
Toward the end of trading Friday, the Dow traded up 0.36 percent to 17,724.30 while the NASDAQ climbed 0.17 percent to 4,725.34. The S&P also rose, gaining 0.24 percent to 2,055.59.
Leading and Lagging Sectors
On Friday, the basic materials sector proved to be a source of strength for the market. Top gainers in the sector included LSB Industries, Inc. (NYSE: LXU), Ferro Corporation (NYSE: FOE), and Gibraltar Industries Inc (NASDAQ: ROCK).
Top 5 Long Term Companies For 2016: Panera Bread Company(PNRA)
Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services. The company also manufactures and supplies dough and other products to company-owned and franchise-operated bakery-cafes. As of March 29, 2011, it owned and franchised 1,467 bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe names. The company was founded in 1981 and is based in St. Louis, Missouri.
- [By William White]
Ron Shaich, CEO of Panera Bread (PNRA), will live on a food-stamp budget of $4.50 a day for food for one week.
Shaich is living on the food-stamp budget as part of the SNAP challenge. SNAP is the system that replaced food stamps. Shaich started the challenge on Saturday and is documenting his challenge on LinkedIn (LNKD). Shaich took his $31.50, the average weekly budget for someone on SNAP, to a grocery store and boughtcereal, pasta, lentils, chickpeas and some vegetables. He noted that it was a barren shopping cart and that he didn’t know if he would be able to sustain himself on the budget. Shiach spent$25.95 on the food he bought that day, which leaves him with $5.55 to buy food with for the rest of the week, reports Daily Finance.
- [By Matt Brownell]
Michael L Abramson/Getty Images For the next week, Ron Shaich will live well below his means: The Panera Bread (PNRA) CEO embarked on a quest Saturday to spend a week living on food stamps. “As part of Hunger Action Month, I decided to take the SNAP Challenge,” Shaich announced on LinkedIn last week. “For one week, beginning Saturday, September 14, 2013, I will live on just $4.50 a day, the average daily benefit per person provided by the Supplemental Nutrition Assistance Program (SNAP; formerly known as Food Stamps).” A number of liberal politicians, including Newark Mayor Cory Booker have taken the SNAP Challenge, publicly documenting their quest to eat on less than $5 a day (the weekly allowance is $31.50). The challenge has become a popular way to see how the other half lives, call attention to hunger issues and protest budget cuts.
- [By Benzinga News Desk]
Oppenheimer downgraded Verizon (NYSE: VZ) to Perform.
Stifel downgraded Disney (NYSE: DIS) to Hold.
Argus upgraded Johnson & Johnson (NYSE: JNJ) to Buy.
Canaccord upgraded Diamondback Energy (NASDAQ: FANG) to Buy.
RBC initiated coverage on Panera Bread (NASDAQ: PNRA) at Outperform.
Argus started Charter (NASDAQ: CHTR) at Buy.
- [By Ben Levisohn]
We are lowering our price target to $285, from $300, as we believe that the Street still needs to adjust longer-term earnings growth expectations…We still recommend that investors seeking upside in the fast casual segment accumulate shares of Zoes Kitchen (ZOES) and Panera Bread (PNRA), as both names appear to be gaining incremental market share at the expense of Chipotle Mexican Grill.
Top 5 Long Term Companies For 2016: (VIAB)
Viacom Inc. operates as an entertainment content company in the United States and internationally. The company connects with audiences through compelling content on television, motion picture, Internet, and mobile platforms through various entertainment brands. It operates in two segments, Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content and related branded products to advertisers, content distributors, and retailers across various distribution platforms, such as television, Internet, and mobile devices; and through various consumer products. Its MTV Networks operates approximately 160 channels and multiplatform properties, which include MTV, VH1, CMT, PalladiaHD, Logo, Nickelodeon, Nick Jr., TeenNick, Nicktoons, Nick at Nite, Atom, Neopets, COMEDY CENTRAL, TV Land, Spike TV, Tr3s, BET, and CENTRIC, as well as a casual games business that includes Web sites, such as AddictingGames.com and Shockwave.com. This segment also op erates BET Networks, which provide entertainment, music, news, and public affairs programming to the African-American audience and consumers of Black culture; and BET channel, CENTRIC, BET Gospel, and BET Hip Hop. The Filmed Entertainment segment produces, finances, and distributes motion pictures and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Insurge Pictures, MTV Films, and Nickelodeon Movies brands. This segment also acquires films for distribution and has a presence in the games business; and also distributes motion pictures and other entertainment content on DVD and Blu-ray, video-on-demand, subscription video-on-demand, pay and basic cable television, broadcast television, and syndicated television platforms. It has a library of approximately 3,300 motion pictures and television programs. The company is headquartered in New York, New York.
- [By Ben Levisohn]
Our study shows that the greatest exposure lies with CBS (CBS), Twenty-First Century Fox (FOXA), and Viacom (VIAB) while Disney and Time Warnerfair relatively well. In our moderate scenarios, Disney and Time Warner exposure as a percentage of EBITDA was around 5% while CBS, Twenty-First Century Fox, and Viacomwas at 9%, 12%, and 10%, respectively. We note that our analysis ignores cost cutting efforts and the benefits that we believe CBS, Disney, and Time Warnerwill have with their own OTT offerings. We suspect Disney will have a non-sports OTT product by 2019.
- [By Harold L. Vogel]
*Includes AMC (AMCX), Cablevision (CVC), Charter, Comcast Cable (CMCSA) and networks, Discovery (DISCA), Disney (DIS) cable networks, Time Warner Cable (TWC) and cable networks, Viacom (VIAB) networks.
- [By Jack Grant]
Over the past few years, Viacom, Inc. (NASDAQ: VIAB)’s Paramount has relied very heavily on franchises to succeed at the box office. From “Mission Impossible” to “SpongeBob SquarePants,” the Viacom-owned studio has had a ton of recognizable IP at its disposal.
10 Best China Stocks To Buy Right Now: Kohl’s Corporation(KSS)
Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
- [By Ben Levisohn]
There’s been a lot of hand wringing about the dismal performance of department stores like Kohl’s (KSS), Macy’s (M), TJX Cos. (TJX), and Sears Holdings (SHLD) and what it says about the state of consumer spending. Yardeni Research’s Ed Yardeni argues that U.S. consumers are shopping, but that “Amazon (AMZN) is taking all the fun, and some of the profits, out of retailing…” He explains:
- [By Ben Levisohn]
Credit Suisse analysts Michael Exstein and Anjani Vedula call Kohl’s (KSS) the “canary in the coal mine” for mall retailers. They explain why:
Rarely does a sector see a secular shift as dramatic as the one now occurring in retail in general and the mall anchors specifically. After last year’s poor operating and stock performance, many retail investors are now expecting a significant cyclical recovery in margins. However, we do not think this is a realistic expectation because mall anchors’ expense structures have fundamentally changed for two reasons: 1) sales mix has shifted towards the lower margin e-commerce channel; 2) brick & mortar operating margins are increasingly pressured (on both an absolute dollar basis as well as % of sales basis), leading to lower operating margins in aggregate.
Using Kohl’s 10-K disclosure to illustrate this shift. We illustrate this secular shift in mall anchors’ expense structures by modelling the breakout in operating income for Kohl’s brick & mortar business (B&M) versus their e-commerce business. Kohl’s gives more details on the shift in SG&A than its peers, making it easier to illustrate the pressures the industry is under. In fact, in spite of the pressures, Kohl’s has maintained relatively constant sales as well as gross margins, no small feat considering they are absorbing shipping & handling charges associated with e-commerce. In effect, we are using Kohl’s as the “canary in the coal mine”, as a preview of a larger secular issue facing the mall anchor sector…
While all retailers with an e-commerce business are exposed to these secular changes to some degree, those with a higher e-commerce penetration are more exposed, sooner. On the brick & mortar operations side, those retailers with the lowest wage rates are likely to be most impact by the essentially industry-wide wage increases brought on b
- [By Ben Levisohn]
Shares of Kohl’s (KSS) are getting killed today after the retailer cut its full-year guidance as profit margins shrank. Citigroup’s Paul Lejuez and Tracy Kogan have the details:
Gabe Hernandez/The Monitor/Associated Press
Not unlike its department store peers, Kohl’s had a tough 4Q. Though comps were up slightly (+0.4%), it was below consensus of +1.7% (though inline with our flat forecast) and margins were significantly below plan as the company needed promotions to drive sales. As we indicated in our 1/4/16 report An Object In Motion(Retail Physics Hold True For Holiday), we believe elevated inventories at dept stores will pressure GM in 1Q (and we believe this will hold true for Kohl’s). Given the tough landscape, and with 1,000+ stores across the country, we believe Kohl’s will continue to be challenged to drive sales and earnings higher, despite its many in-store initiatives. We reiterate our Neutral rating…We are lowering our 2015E/2016E from $4.25/$4.29 to $4.00/$3.91. For 2016 we model comps 0-(1)% and op margin of 7.4% (down 80bps). We are lowering our TP from $49 to $46 to reflect our forecast reduction.
Shares of Kohl’s have tumbled 16% to $43.04 at 11:28 a.m. today, while Macy’s (M) has dropped 2.6% to $40.56, and Nordstrom (JWN) has fallen 5.7% to $47.64.
Top 5 Long Term Companies For 2016: Microchip Technology Incorporated(MCHP)
Microchip Technology Incorporated, together with its subsidiaries, develops, manufactures, and sells semiconductor products for various embedded control applications. It offers a family of microcontroller products that include 8-bit, 16-bit, and 32-bit PIC microcontrollers; and 16-bit dsPIC digital signal controllers, which feature on-board flash memory technology. The company also provides a set of application development tools that enable system designers to program a PIC microcontroller and dsPIC DSC for specific applications. In addition, it offers analog and interface products, which consist of various families with approximately 600 power management, linear, mixed-signal, thermal management, safety and security, and interface products. Further, the company provides memory products comprising serial electrically erasable programmable read-only memory. Its products are used in various applications in automotive, communications, computing, consumer, and industrial contr ol markets. Microchip Technology Incorporated markets its products primarily through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. The company was founded in 1989 and is based in Chandler, Arizona.
- [By Beth Piskora]
They are listed below:
Altera (ALTR)yielding 1.7%
Apple (AAPL)yielding 2.5%
Applied Materials (AMAT)yielding 2.6%
Cisco (CSCO)yielding 2.9%
EMC Corp. (EMC)yielding 1.5%
International Business Machines (IBM)yielding 2.0%
KLA-Tencor (KLAC)yielding 3.2%
Microchip Technology (MCHP)yielding 3.6%
Oracle (ORCL)yielding 1.5%
Qualcomm (QCOM)yielding 2.1%
Texas Instruments (TXN)yielding 2.9%
Xilinx (XLNX)yielding 2.3%
Subscribe to S&P’s The Outlook here
Top 5 Long Term Companies For 2016: NO Name(ACI)
Arch Coal, Inc., incorporated on June 20, 1969, is a coal producer. The Company is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company operates, or contracts out the operation of over 10 active mines in the United States. The Company’s segments include the Powder River Basin, with operations in Wyoming, and the Appalachia, with operations in West Virginia, Kentucky, Maryland and Virginia. The Company also sells coal from operations in Colorado and Illinois.
Powder River Basin
The Powder River Basin consists of Black Thunder and Coal Creek mines. Black Thunder is a surface mining complex located on approximately 35,800 acres in Campbell County, Wyoming. The Black Thunder complex extracts steam coal from the Upper Wyodak and Main Wyodak seams. The Black Thunde r mining complex has approximately 1.2 billion tons of proven and probable reserves. The Black Thunder mining complex consists of active pit areas and over three loadout facilities. Coal Creek is a surface mining complex located on approximately 7,400 acres in Campbell County, Wyoming. The Coal Creek mining complex extracts steam coal from the Wyodak-R1 and Wyodak-R3 seams. The Coal Creek mining complex has approximately 153.7 million tons of proven and probable reserves. The Coal Creek complex consists of active pit areas and a loadout facility.
The Company’s mines in Appalachia include Coal-Mac, Lone Mountain, Mountain Laurel, Beckley, Vindex, Sentinel and Leer. Coal-Mac is a surface and underground mining complex located on approximately 46,000 acres in Logan and Mingo Counties, West Virginia. Surface mining operations at the Coal-Mac mining complex extract steam coal primarily from the Coalburg and Stockton seams. The Coal-Mac mining complex has approximately 24.6 million tons of proven and pr! obable reserves.
Lone Mountain is an underground mining complex located on approximately 54,000 acres in Harlan County, Kentucky and Lee County, Virginia. The Lone Mountain mining complex extracts steam and metallurgical coal from the Kellioka, Darby and Owl seams. The Lone Mountain mining complex has approximately 10.2 million tons of proven and probable reserves. The complex consists of approximately three underground mines operating over six continuous miner sections.
Mountain Laurel is an underground and surface mining complex located on approximately 38,200 acres in Logan County and Boone County, West Virginia. Underground mining operations at the Mountain Laurel mining complex extract steam and metallurgical coal from the Cedar Grove and Alma seams. Surface mining operations at the Mountain Laurel mining complex extract coal from a number of different splits of the Five Block, Stockton and Coalburg seams. The complex consists of over one under ground mine operating a longwall and approximately one continuous miner sections, a preparation plant and a loadout facility.
The Beckley mining complex is located on approximately 15,400 acres in Raleigh County, West Virginia. Beckley is extracting low-volatile metallurgical coal in the Pocahontas No. 3 seam. The Vindex mining complex consists of a surface mine located on approximately 40,300 acres in Maryland and West Virginia. Mining operations extract coal from the Upper Freeport, Middle Kittanning, Pittsburgh, Little Pittsburgh and Redstone seams.
The Sentinel mining complex consists of one underground mine, a preparation plant and a loadout facility located on approximately 25,600 acres in Barbour County, West Virginia. Mining operations extract coal from the Clarion coal seam. The Leer complex, located in Taylor County, West Virginia, includes approximately 40.1 million tons of coal reserves. It has both steam and metallurgical quality coal i n the Lower Kittanning seam and is a part of approximately 7! 9,400 acr! es that is considered its Tygart Valley area.
The West Elk is an underground mining complex located on approximately 17,800 acres in Gunnison County, Colorado. The West Elk mining complex extracts steam coal from the E seam. The West Elk mining complex has approximately 53.5 million tons of proven and probable reserves. The West Elk complex consists of a longwall, continuous miner sections and a loadout facility. The Viper mining complex consists of an underground coal mine and a preparation plant located on approximately 46,500 acres in central Illinois near the city of Springfield. Mining operations extract steam coal from the Illinois No. 5 seam, also referred to as the Springfield seam. It has approximately 37.2 million tons of proven and probable reserves.
The Company competes with Alpha Natural Resources, Inc., Cloud Peak Energy, CONSOL Energy Inc. and Peabody Energy Corp.
- [By Robert Weinstein]
Lawsuit after lawsuit, a billion dollars in cost overruns, taxpayer subsidies and the most expensive coal plant to operate causing electric rates to skyrocket, if this becomes the norm. The new project is called Plant Ratcliffe by Southern Co. Plant Ratcliffe is quite the boondoggle, but proponents say it always costs more to build the first one and costs will come down as the technology improves. More plants are in the planning stages and may bring a needed shot in the arm to mining stocks. Alpha Natural Resources (ANR), Walter Energy (WLT), Arch Coal (ACI), Cliffs Natural Resources (CLF), Peabody Energy (BTU), and James River Coal (JRCC) are companies that may benefit from increased demand for coal. Not all coal or coal companies are equal, so it’s crucial to discriminate based on your investment time-horizon goals. With that said, the announcement should have been followed by a deep sell-off in coal and utility related stocks. But something happened. Or, rather, didn’t happen. The above coal stocks didn’t sell off tremendously and are largely moving along with the rest of the market today. This is noteworthy because stocks don’t bottom on good news, they reach a bottom on awful news. Let me explain: When a stock chart continues trending lower, what you’re witnessing is investors throwing in the towel and moving on. Leaving aside bankruptcies for a moment, almost all stocks have a core group of investors that are commonly known as the “strong hands.” A stock is at the bottom when the weak hands are gone. At some point, distressing news (like an unfavorable EPA announcement regarding coal) hits the wire and the related stock or stocks react with little or no movement. This is what we are witnessing right now in coal-related companies.