Shares of Halliburton (HAL) and Baker Hughes (BHI) are soaring after they announced that they’d challenge the U.S. Department of Justice’s decision to block their merger. RBC’s Kurt Hallead has the details:
Shares of both companies rose ~5% following the joint press release indicating they would challenge the DoJ’s decision to oppose the pending merger.
Following numerous media reports this week that the DoJ would move to block the pending Halliburton-Baker Hughes merger, the companies today issued a joint press release vowing to contest the DoJ’s effort to stop the deal.
This confirms that the DoJ is, in fact, planning to sue to halt the pending merger. While it is extremely difficult to handicap potential outcomes at this point, it appears likely that a resolution will be delayed further. The next critical date is April 30, after which either party can choose to walk away if regulatory approval has not been obtained.
Top 5 Prefered Companies To Own For 2016: Gibraltar Industries, Inc.(ROCK)
Gibraltar Industries, Inc. manufactures and distributes building products in North America, Europe, and Asia. Its Residential Products segment offers roof and foundation ventilation products and accessories, including solar powered units; postal and parcel storage products, such as single mailboxes, cluster boxes for multi-unit housing, and package delivery systems; roof edgings and flashings; soffits and trims; drywall corner beads; metal roofing and accessories; rain dispersion products consisting of gutters and accessories; and exterior retractable awnings. This segment also provides electronic parcel lockers, roof top safety kits, chimney caps, heat trace coils and exterior, remote-controlled deck awnings for sun protection, and solar-powered ventilation products. The companys Industrial and Infrastructure Products segment offers fabricated bar grating and safety plank grating used in industrial flooring, walkways, stair s, platforms, safety barriers, drainage covers, and ventilation grates; expanded and perforated metals used in walkways, catwalks, automotive trims, shelving, fencing, barriers, and other applications where visibility and security are necessary; fiberglass grating; and expansion joint systems, bearing assemblies, and pavement sealing systems used in bridges, elevated highway, airport runways, and rail crossings. This segment also provides architectural facades for buildings, front grilles for truck tractor manufacturers; interior ceilings and lighting fixtures; and outdoor railings and balustrades. Its Renewable Energy and Conservation segment designs and provides engineered solutions for solar racking systems and greenhouse structures. The company markets its products through sales personnel and outside sales representatives. Gibraltar Industries, Inc. was founded in 1993 and is headquartered in Buffalo, New York.
- [By Lisa Levin]
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 Prefered Companies To Own For 2016: Costco Wholesale Corporation(COST)
Costco Wholesale Corporation operates membership warehouses that offer a selection of branded and private label products in a range of merchandise categories in no-frills, self-service warehouse facilities. The company’s product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, toys, seasonal items, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, house wares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It also provides business and gold star (individual) membership services. As of April 26, 2011, the company operated 581 warehouses, including 425 in the United States and Puerto Rico, 80 in Canada, 22 in the Uni ted Kingdom, 7 in Korea, 6 in Taiwan, 8 in Japan, 1 in Australia, and 32 in Mexico. It also has Costco Online, an electronic commerce Web site, at costco.com in the United States and at costco.ca in Canada. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
- [By Ben Levisohn]
American Express reported monthly loss and delinquency numbers for March: Ending period loan balance for US Consumer Services and U.S. Small Business was $50.7Bn, representing 2% m/m growth from February and 12% y/y growth from last year’s balance (excluding U.S. Costco Wholesale (COST) and JetBlue Airways (JBLU)). The sale of JetBlue was completed on March 18, 2016.
Top 10 Cheapest Companies To Buy For 2016: E*TRADE Financial Corporation(ETFC)
E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand name. It operates through two segments, Trading and Investing, and Balance Sheet Management. The Trading and Investing segment offers retail brokerage products and services, investor-focused banking products, and corporate services. The Balance Sheet Management segment manages asset allocation; loans previously originated by the company or purchased from third parties; deposits and customer payables; and credit, liquidity, and interest rate risk. The company provides its services to customers through digital platforms; and a network of customer service representatives and financial consultants through phone, email, and online at two branches, as well as in person through 30 branches across the United States. E*TRADE Financial Corporation was incorporated in 1982 and is headquartered in New York, New York.
- [By Jon C. Ogg]
E*TRADE Financial Corp. (NASDAQ: ETFC) was reiterated as Buy, but the price target was raised to $19.50 from $16.50, at Sterne Agee, making the third or fourth such price target upgrade in as many days, but what stands out here is that this appears to now be a “street-high” price target.
Top 5 Prefered Companies To Own For 2016: Green Mountain Coffee Roasters Inc.(GMCR)
Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffee maker business. The company sources, produces, and sells approximately 200 varieties of coffee, cocoa, teas, and other beverages in K-Cup portion packs and coffee in traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs for use in at-home (AH) and away-from-home (AFH). It sells its products primarily in North America through supermarkets, club stores, and convenience stores; in restaurants and hospitality; and to office coffee distributors, as well as directly to consumers through its Website. The company also manufactures gourmet single-cup brewing systems and brewing equipment. In addition, it sells AH single-cup brewers; accessories; and coffee, tea, hot cocoa, and other beverages in K-Cup portion packs, as well as offers other licensed roasters to retailers, department stores, and mass merchandisers. Further, the company sells AFH single-cup brewers to distributors for use in offices. It provides its products under the Van Houtte, Brlerie St. Denis, Brlerie Mont-Royal, and Orient Express brands, as well as licensed Bigelow and Wolfgang Puck brands. The company was founded in 1981 and is based in Waterbury, Vermont.
- [By David Sterman]
But for short sellers in Green Mountain Coffee Roasters (Nasdaq: GMCR), there's another outcome: They've been badly burned as shares have surged, but they insist they've been right all along, and it's only a matter of time before the stock crashes and burns.
- [By Jonas Elmerraji]
As badly as short sellers want to hate on Green Mountain Coffee Roasters (GMCR), betting against the multiyear rally in this $12.7 billion beverage stock has been about as wise as eating from a box with a skull and crossbones on it. And as a bull market continues to lift all ships, Green Mountain’s ship is going to keep floating above the others.
Green Mountain owns Keurig, the brand of beverage brewers that use self-contained K-Cups to make coffee, teas, and other drinks. While Keurig’s “fad” status has certainly helped tip the deck against GMCR, the fact remains that the firm has done most of the hard work in getting Keurig machines accepted by consumers. With brewers essentially ubiquitous at this point, the firm is able to make money on its cash cow: the K-Cups.
Keurig’s individual-serving cups have big margins and a big installed base. With huge convenience and the relatively large sunk cost that consumers have put into their Keurig machines, it’s a sticky business with big switching costs. Consumers who buy a Keurig are much less likely to spend the money on a competing brand of proprietary coffee pods.
I’ve said before that GMCR is far from cheap right now. But its momentum trajectory is showing few signs of fizzling out, especially as direct competitors such as Starbucks (SBUX) continue to sell K-Cups of their own. Don’t bet against GMCR in September buy this Rocket Stock instead.
- [By Canadian Value]
So Im going to stick my next out and share my views on four battleground stocks that are among my favorite shorts: World Acceptance (WRLD), Green Mountain (GMCR), Herbalife (HLF), and InterOil (IOC). And next week at the Value Investing Congress I will present another short, my largest.
Top 5 Prefered Companies To Own For 2016: TD Ameritrade Holding Corporation(AMTD)
TD Ameritrade Holding Corporation provides securities brokerage services and related technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. Its products and services include tdameritrade.com Web Platform for self-directed retail investors; Trade Architect, a Web-based platform that enables active investors and traders identify opportunities and stay informed; thinkorswim, a desktop platform for traders; and TD Ameritrade Mobile, which allows on-the-go investors and traders to trade and monitor accounts from Web-enabled mobile devices. The company also offers TD Ameritrade Institutional that provides brokerage and custody services to approximately 5,000 independent RIAs and their clients; TD Ameritrade Apex, which offers various services to retail clients; Investools, a suite of investor education products and services for stock, option, fore ign exchange, futures, mutual fund, and fixed-income investors; Amerivest, an advisory service that develops portfolios of exchange-traded funds (ETFs) and mutual funds; AdvisorDirect, a national referral service for investors, who wish to engage the services of an independent RIA; and TD Ameritrade Corporate Services that provide self-directed brokerage services to employees of corporations. In addition, it offers various retail brokerage products and services, such as common and preferred stocks; ETFs; options; futures; foreign exchange; mutual funds; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, and preferred stocks; margin lending; cash management services; and annuities. The company provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. TD Ameritrade Holding Corporation was founded in 1971 and is headquartered in Omaha, Nebraska. TD Ameritra! de Holding Corporation operates as a subsidiary of The Toronto-Dominion Bank.
- [By Matthew Smith]
Although we were not surprised by the move yesterday we did not take an overly aggressive stance in positioning the portfolio to benefit from the Fed not tapering. We were long, but we did not initiate any trades solely for the purpose to benefit from the announcement. We are more interested in the long-term wealth building of portfolios right now and as such believe that readers should look to our recent winners that had pullbacks yesterday as buying opportunities. Specifically, we like Ameritrade (AMTD), Charles Schwab (SCHW) and MetLife (MET) which all saw pullbacks ranging from 2.5% to a bit over 5.5% in yesterday’s session. We highlighted the discount brokers as a sector to watch right before the latest takeoff and our belief is that although rates remain unchanged the brokerage business will continue to perform strongly. The next big move up will be as rates rise, but even if one has to wait for this move it will be well worth it for one’s portfolio.
- [By Spencer Israel]
5. TD Ameritrade Holding Corp. (NASDAQ: AMTD) – Analysts are neutral on the brokerage firm, which has been in a trading range from $24-$32 for most of the year. The stock has also had low volatility, and the Street's confidence is at 69%.