The U.S. Supreme Court on Friday agreed to revisit the issue of fiduciary prudence in managing employer stock investment options in defined contribution plans.
The Labor Department had petitioned the court to hear a case regarding Fifth Third Bancorp that sought to settle a recent split between judicial circuits on the issue that could make it easier for participants to challenge employers when company stock loses value.
The high court’s ultimate decision could make it harder for plan sponsors to offer company stock as an investment option in defined contribution plans, but it could also resolve inconsistencies regarding the practice that have come from lower court rulings.
Top Low Price Stocks To Own For 2015: Solar Thin Films Inc (SLTZ)
Solar Thin Films, Inc. is engaged in the business of designing, manufacturing and installation of thin-film amorphous silicon (a-Si) photovoltaic manufacturing equipment. The equipment is used in plants that produce photovoltaic thin-film a-Si solar panels or modules. The Company operates through its wholly owned subsidiary, Kraft Elektronikai Zrt (Kraft). Kraft is engaged in the design, development, manufacture, and installation of a-Si photovoltaic manufacturing equipment. The primary buyers of photovoltaic thin-film manufacturing equipment are businesses, as well as investment partnerships, engaged in the production of photovoltaic thin-film modules. In May 2010, the Company acquired Atlantis Solar LLC. In May 2013, Solar Thin Films Inc acquired Quality Resource Technologies Inc. In October 2013, Solar Thin Films Inc announced the sale of all of its ownership stake of Hungarian subsidiary, Kraft, R.t. (Kraft), to GJR Collectibles LLC.
Kraft has been providi ng equipment that is incorporated into a single manufacturing line capable of manufacturing a-Si solar modules that produce approximately 5megawatt (MW) of solar power annually. The Company focuses, directly and through joint ventures or alliances with other companies or governmental agencies, to sell equipment for and participate financially in solar power facilities using thin film a-Si solar modules or metallurgical and other crystalline solar modules as the power source to provide electricity to municipalities, businesses and consumers.
The Company competes with Applied Materials and Oerlikon.
- [By Peter Graham]
Small cap stocks Alliance Creative Group Inc (OTCMKTS: ACGX), Dale Jarrett Racing Adventure Inc (OTCMKTS: DJRT), Inscor Inc (OTCMKTS: IOGA) and Solar Thin Films Inc (OTCMKTS: SLTZ) have all been getting some attention lately in various investment newsletters and it should come as no surprise that two out of four of these stocks have been the subject of paid promotions – which tend to benefit traders. However, two out of four of these stocks also have pretty good financials for being small cap OTC stocks and that might make them attractive to investors with a long term time horizon. So which of these stocks might make traders some profits in the short term and investors some profits over the longer term? Here is a closer look to help you decide:
Top Low Price Stocks To Own For 2015: Centene Corporation (CNC)
Centene Corporation provides multi-line healthcare programs and services in the United States. It operates in two segments, Medicaid Managed Care and Specialty Services. The Medicaid Managed Care segment provides Medicaid and Medicaid-related health plan coverage to individuals through government subsidized programs, including Medicaid, the State childrens health insurance program, long-term care, foster care, and Medicare special needs plans, as well as aged, blind, or disabled programs. Its health plans provide primary and specialty physician care, inpatient and outpatient hospital care, transportation assistance, emergency and urgent care, vision care, prenatal care, dental care, laboratory and x-ray services, immunizations, prescriptions and over-the-counter drugs, home health and durable medical equipment, behavioral health and substance abuse services, therapies, social work services, care coordination, and 24-hour nurse advice line. The Specialty Services segment manages behavioral healthcare for members; provides health insurance to individual customers and their families; implements life and health management programs; offers long-term care services to the elderly and people with disabilities; and administers routine and medical surgical eye care benefits through its network of eye care providers. It also offers telehealth services; and claims processing, pharmacy network management, benefit design consultation, drug utilization review, formulary and rebate management, specialty and mail order pharmacy services, and patient and physician intervention services, as well as provides care management solutions that automate the clinical, administrative, and technical components of care management programs. The company offers its services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in St. Louis, Missouri.
- [By Holly LaFon]
Importantly, we like the industry in which Centene (CNC) competes. Some of our investors might recall that one of our prior investments, Amerigroup, was acquired in 2012 by Wellpoint at a val uation that allowed us to achieve a return on investment of greater than 100% over the roughly one – year time period that we owned the shares. Medicaid managed care companies not only save states money but also offer better service; therefore, more states a re letting managed care companies run their Medicaid programs. To that end, states are expanding both the geographies carved out to managed care companies and the types of programs. The next phase of growth will come from the dual – eligible population. D uals (or dual – eligible population) are 8.3mm 3 people in the U.S. that are eligible to receive both Medicare and Medicaid benefits (mainly low – income seniors). According to the Kaiser Foundation, Duals accounted for almost 40% of Medicaid spending although they made up only 1 5% of the Medicaid population. We believe there are ample growth opportunities for CNC and other companies to meet the challenges of managing these disparate Medicaid members for the foreseeable future.
- [By Lauren Pollock]
Centene Corp.(CNC) agreed to acquire a roughly 68% interest in U.S. Medical Management LLC, a provider of in-home health services, for $200 million in cash and stock as the Medicaid insurer continues to expand its stable of services. Centene also said it is forming a new health-care enterprise holding company that will connect it and other health solution providers.
- [By Monica Gerson]
Whirlpool (NYSE: WHR) reported a strong rise in its third-quarter earnings. For the year, Whirlpool lifted its earnings forecast to $9.90 to $10.10 per share, versus its July outlook of $9.50 to $10 per share. To read the full news, click here. Questcor Pharmaceuticals (NASDAQ: QCOR) announced today that it will commence a Phase 2 study to explore the efficacy and safety of H.P. Acthar® Gel (repository corticotropin injection) for Acute Respiratory Distress Syndrome (ARDS). To read the full news, click here. Centene (NYSE: CNC) reported a stronger-than-expected third-quarter profit. Centene’s quarterly net earnings surged to $49.4 million, or $0.87 per share, up from $3.8 million, or $0.07 per share, in the year-ago period. To read the full news, click here. Dwolla and Alliance Data Systems (NYSE: ADS) today announced they have signed a new, multi-year agreement for Alliance Data’s Retail Services business to provide a cardless private label credit product for the Dwolla payment network. To read the full news, click here.
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Top Low Price Stocks To Own For 2015: Sagent Pharmaceuticals Inc.(SGNT)
Sagent Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, sources, and markets pharmaceutical products, principally injectable-based generic equivalents to branded products in the United States. It offers a range of products across anti-infective, oncolytic, and critical care indications in various presentations, including single-and multi-dose vials, pre-filled ready-to-use syringes, and premix bags. The company?s anti-infective products include Levofloxacin, a fluoroquinolone antibacterial for the treatment of various infections caused by susceptible bacteria in adults of age 18 years or older; and Cefepime, an antibiotic used to treat infections of the urinary tract, and skin and skin structure, as well as moderate to severe pneumonia, intra-abdominal infections, and as empiric therapy for febrile neutropenic patients. Its oncology products comprise Gemcitabine, a nucleoside metabolic inhibitor used for the treatment of ovarian, breast, lung, and panc reatic cancers; and Topotecan, a topoisomerase inhibitor for small cell lung cancer sensitive disease. The company also offers critical care products consisting of Adenosine, an antiarrhythmic used for the treatment of cardiac rhythm disturbances; and Heparin, an anticoagulant used to prevent and treat blood clotting during and after surgery and dialysis. As of December 31, 2011, it marketed 33 generic injectable products; and had a new product pipeline that included 36 products represented by 63 Abbreviated New Drug Applications (ANDAs). The company sells its products to pharmaceutical wholesale companies, which then distribute the products to end-user hospitals, long-term care facilities, alternate care sites, and clinics. The company was formerly known as Sagent Holding Co. and changed its name to Sagent Pharmaceuticals, Inc. in April 2011. Sagent Pharmaceuticals, Inc. was founded in 2006 and is headquartered in Schaumburg, Illinois.
- [By James Brumley]
In no particular order…
Sagent Pharmaceuticals (SGNT)
Though Sagent Pharmaceuticals (SGNT) makes a few dozen generic drugs and has a similar number in the works, odds are good most investors couldn’t name a single one of them… and that’s a good thing for anyone on the hunt for cheap stocks from the pharma world.
- [By Rich Smith]
Sagent Pharmaceuticals (NASDAQ: SGNT ) is recalling three lots of Vecuronium Bromide for Injection, 10mg (NDC number 25021-657-10). Vecuronium Bromide for Injection is a neuromuscular blocking agent used in addition to general anesthesia to facilitate insertion of endotracheal tubes, and to provide skeletal muscle relaxation during surgery or mechanical ventilation.
- [By CRWE]
Sagent Pharmaceuticals, Inc. (Nasdaq:SGNT), a leader of specialty pharmaceutical products with an emphasis on the injectable market, reported financial results for the quarter ended March 31, 2012.
- [By Roberto Pedone]
Sagent Pharmaceuticals (SGNT) is a pharmaceutical company engaged in developing, manufacturing, sourcing and marketing pharmaceutical products, with a specific emphasis on injectables. This stock closed up 1.1% at $23.58 in Thursday’s trading session.
Thursday’s Volume: 235,000
Three-Month Average Volume: 128,231
Volume % Change: 110%
From a technical perspective, SGNT rose modestly higher here right above its 50-day moving average of $22.32 with above-average volume. This move pushed shares of SGNT into breakout territory, since the stock took out some near-term overhead resistance at $23.50. Shares of SGNT are now quickly moving within range of triggering another near-term breakout trade. That trade will hit if SGNT manages to clear its 52-week high at $24.27 with high volume.
Traders should now look for long-biased trades in SGNT as long as it’s trending above its 50-day at $22.32 and then once it sustains a move or close above its 52-week high at $24.27 with volume that’s near or above 128,231 shares. If that breakout hits soon, then SGNT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $26.74 to its all-time high at $29.23.
Top Low Price Stocks To Own For 2015: HCP Inc. (HCP)
HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. It primarily invests in properties serving the healthcare industry including sectors of healthcare such as senior housing, life science, medical office, hospital and skilled nursing. The fund also invests in mezzanine loans and other debt instruments. It engages in acquisition, development, leasing, selling and managing of healthcare real estate and provides mortgage and other financing to healthcare providers. The fund benchmarks the performance of its portfolio against the S&P 500 Index, Berkshire Hathaway Index, and MSCI REIT Index. HCP, Inc. was formed in 1985 and is based in Long Beach, California with additional office in Nashville and San Francisco.
- [By Jim Fink]
Industry Diamond Offshore (NYSE: DO) $55.39 $7.7 billion 3.3 -14.2% Oil Drilling HCP Inc. (NYSE: HCP) $36.22 $16.5 billion 3.5 -16.0% Healthcare REIT American Realty Capital Properties (Nasdaq: ARCP) $12.64 $2.4 billion 8.6 1.9% Retail and Office REIT Southern Co. (NYSE: SO) $40.88 $36.1 billion 9.8 -0.1% Electric Utility Cooper Tire & Rubber (NYSE: CTB) $22.01 $1.4 billion 10.3 -11.8% Automobile Tires CenturyLink (NYSE: CTL) $31.36 $18.5 billion 11.8 -14.5% Telecommunications Quest Diagnostic (NYSE: DGX) $54.05 $7.8 billion 13.4 -5.4% Medical Diagnostic Tests Kinder Morgan Energy Partners (NYSE: KMP) $79.57 $34.9 billion 15.4 6.0% Energy pipeline MLP Altera (Nasdaq: ALTR) $31.98 $10.3 billion 15.9 -5.6% Semiconductors ADT Corp. (NYSE: ADT) $40.01 $8.0 billion 16.8 -12.9% Home Security
- [By Roberto Pedone]
You don’t have to be an expert technical analyst to see what’s going on in shares of health care REIT HCP (HCP). This stock is in stuck in a textbook downtrending channel. Fundamentally, there’s a lot to like about this stock, but HCP is a good example of why it’s never a good idea to chase yield; HCP may have a 5.29% annual dividend payout, but shares have lost more than that in the last month alone.
HCP’s price channel has provided traders with a high-probability range for shares since the middle of the year. Despite the last four attempts at pushing through trendline resistance, shares have been swatted down on each attempt. And while HCP has been turning higher in the last few sessions, investors should look at trendline resistance at $42 with a lot of skepticism. That’s probably the worst possible time to be a buyer.
Instead, it makes sense to sell near the trendline for a most efficient exit in HCP. Yes, trendlines do eventually break, but getting in now is a big mistake. After all “this time it’s different” are probably the most expensive four words in the English language. As long as shares stay within that channel, sell the bounce.
Top Low Price Stocks To Own For 2015: Big 5 Sporting Goods Corporation(BGFV)
Big 5 Sporting Goods Corporation, together with its subsidiaries, operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding, and roller sports. It also provides various private label merchandise, including shoes, apparel, binoculars, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its owned labels comprising Court Casuals, Golden Bear, Harsh, Pacifica, Rugged Exposure, and Triple Nickel; and licensed trademarks, including Avet, Body Glove, Fila, GoFit, Hi-Tec, Maui & Sons, Morrow, and Realm and The Realm. As of February 28, 2012, it operated 406 stores in 12 states under the Big 5 Sporting Goods name. The company was founded in 1955 and is headquartered in El Segundo, California.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Big 5 Sporting Goods (Nasdaq: BGFV ) , whose recent revenue and earnings are plotted below.
- [By John Udovich]
Yahoo! Finance recently noted once again how the hit reality show “Duck Dynasty” along with fears about Obama’s gun control policies have rural enthusiasts flocking to Cabela’s Inc (NYSE: CAB), but how does its performance compare with that of mid cap peer Dicks Sporting Goods Inc (NYSE: DKS) along with small caps Big 5 Sporting Goods Corporation (NASDAQ: BGFV) and Hibbett Sports, Inc (NASDAQ: HIBB)? After all, the same trends should be lifting all boats that sell outdoor related merchandise, guns or sporting goods (Note: Bass Pro, Inc, which is much closer to being a true peer of Cabela’s Inc as its also focused on the outdoors, is privately held) .
Top Low Price Stocks To Own For 2015: Syntel Inc.(SYNT)
Syntel, Inc. provides information technology (IT) and knowledge process outsourcing (KPO) services worldwide. It operates in four segments: Applications Outsourcing, KPO, e-Business, and TeamSourcing. The Applications Outsourcing segment provides software applications development, maintenance, testing, migration, and infrastructure services. The KPO segment offers a host of outsourced solutions for knowledge and business processes. It focuses on middle and back-office business processes of the transaction cycle in the capital markets, banking, healthcare, and insurance industries. The e-Business segment provides technology services in the areas of architecting, implementing, and maintaining Web solutions, data warehousing/business intelligence, enterprise application integration, business process management, and enterprise resource planning solutions. The TeamSourcing segment offers professional IT consulting services directly to customers on a staff augmentation basis. It s services include systems specification, design, development, implementation, and maintenance of complex IT applications involving computer hardware, software, data, and networking technologies and practices. Syntel, Inc. provides services to a range of companies primarily in the financial services, healthcare and life sciences, insurance, manufacturing, automotive, retail, logistics, and telecom industries. The company was founded in 1980 and is headquartered in Troy, Michigan.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, IT services specialist Syntel (NASDAQ: SYNT ) has earned a coveted five-star ranking.
Top Low Price Stocks To Own For 2015: AutoNation Inc (AN)
AutoNation, Inc. (AutoNation), incorporated on May 30, 1991, is an automotive retailer in the United States. As of December 31, 2011, the Company had three operating segments: Domestic, Import, and Premium Luxury. As of December 31, 2011, it owned and operated 258 new vehicle franchises from 215 stores located in the United States, predominantly in metropolitan markets in the Sunbelt region. Its stores sell 32 different brands of new vehicles. The core brands of vehicles that it sells, representing approximately 90% of the new vehicles that it sold during the year ended December 31, 2011, was manufactured by Ford, Toyota, Nissan, General Motors, Honda, Mercedes-Benz, BMW, and Chrysler. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, parts and automotive repair and maintenance services , and automotive finance and insurance products, which includes the arranging of financing for vehicle purchases through thi rd-party finance sources. The Company retailed approximately 400,000 new and used vehicles through its stores in 2011. It acquired one automotive retail franchise and related assets during 2011.
Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Chrysler. Its Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Its Premium Luxury segment is consists of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sells used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2011, Domestic revenue represented 34% of total revenue, Import revenue represented 37% of total revenue, and Premium Luxury revenue represented 28% of total revenue. Corporate and other is consist of its other businesses, incl! uding collision centers, e-commerce activities, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that it arranges under agreements with third parties.
The Company’s stores acquires vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same franchise. it acquires used vehicles from customer trade-ins, auctions, lease terminations, and other sources. It recondition used vehicles acquired for retail sale at its stores’ service facilities and capitalize costs related thereto as used vehicle inventory. Through its VVOs, which are located on existing store facilities, it sells vehicles that it would have traditionally wholesaled with an average retail price lower than that of used vehicles it typically retail. Used vehicles that th e Company do not sell at its stores or VVOs generally are sold at wholesale prices through auctions.
The Company offers a variety of automotive finance and insurance products to its customers. The Company arranges for its customers to finance vehicles through installment loans or leases with third-party lenders, including the vehicle manufacturers’ and distributors’ captive finance subsidiaries, in exchange for a commission payable to the Company. It also offers its customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (GAP, this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), tire and wheel protection, and theft protection products. The vehicle protection products that its stores offers to customers are underwritten and administered by independent third parties, including the vehicle manufacturers’ and distr ibutors’ captive finance subsidiaries. The Company sells t! he produc! ts on a straight commission basis; however, it also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements. Commissions that it receives from these third-party providers may be subject to chargeback, in full or in part, if products that it sells, such as extended service contracts, are cancelled. Its stores also provide a range of vehicle maintenance, repair, paint, and collision repair services, including warranty work that can be performed only at franchised dealerships and customer-pay service work. The Company has entered into framework agreements with vehicle manufacturers and distributors. It operates each of its new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor.
- [By Lawrence Meyers]
For auto loans, debt balance and number of accounts are also increasing, while auto loan delinquencies are declining. That makes automakers great stocks to buy. Trucks and used cars are selling best right now, so I’d choose the all-American Ford (F) which has regained its footing post-financial crisis, and the king of used car retailers, AutoNation (AN).
- [By Lawrence Meyers]
Something’s wrong here, however. The company is generating negative operating cash flow, and even more negative FCF. Stop the car. I’m out.
AutoNation (AN) is a hybrid, offering both used and new cars, along with all those high-margin products. But how does it compare to other car stocks?
- [By MONEYMORNING]
From a high-tech standpoint, AutoNation Inc. (NYSE: AN) ranks as an intriguing hybrid play.
To be sure, it is heavily rooted in the physical world. After all, the company operates some 267 auto dealerships around the United States, making it the industry’s largest new-car retailer.
- [By Miles Weiss]
Lampert, who took over as chief executive officer at Sears in February, distributed stock in the retailer rather than cash to investors exiting his fund, forcing him to surrender majority control. While such redemptions in kind are rare within the hedge-fund industry, Lampert has used the technique several times, paying investors who want to withdraw their money with shares from his stakes in companies such as AutoZone Inc. (AZO) and AutoNation Inc. (AN)
Top Low Price Stocks To Own For 2015: Dana Holding Corporation (DAN)
Dana Holding Corporation engages in the design, manufacture, and supply of driveline products, technologies, and service parts for vehicle manufacturers worldwide. The company operates in four segments: Vehicle Driveline Technologies, Commercial Vehicle Driveline Technologies, Off-Highway Driveline Technologies, and Power Technologies. It provides light axles, driveshafts, engine sealing products, thermal products, and related service parts for light trucks, sport utility vehicles, crossover utility vehicles, vans, and passenger cars. The company also offers axles, driveshafts, chassis and side rails, ride controls and related modules and systems, engine sealing products, thermal products, and related service parts for medium- and heavy-duty trucks, buses, and other commercial vehicles. In addition, it provides axles, driveshafts, suspension components, transmissions, electronic controls, related modules and systems, engine sealing products, thermal products, and related s ervice parts for construction and earth moving machinery; agricultural, mining, forestry, rail, and material handling equipment; and various non-vehicular and industrial applications. Dana Holding Corporation was founded in 1904 and is headquartered in Maumee, Ohio.
- [By Rich Duprey]
Auto parts supplier Dana Holding (NYSE: DAN ) announced today it is expanding its share repurchase program to $1 billion, representing a $900 million increase over the $100 million bought back under the previous authorization. Shares will be bought back over the next two years.
- [By Rich Duprey]
Auto components manufacturer Dana Holding (NYSE: DAN ) announced yesterday its third-quarter dividend of $0.05 per share, the same rate it’s paid since it began making a payout last year. The board of directors said the quarterly dividend is payable on Aug. 30 to the holders of record at the close of business on Aug. 9.
Top Low Price Stocks To Own For 2015: Tenet Healthcare Corporation(THC)
Tenet Healthcare Corporation, an investor-owned health care services company, operates acute care hospitals and related health care facilities. The company?s general hospitals offer acute care services, operating and recovery rooms, radiology services, respiratory therapy services, clinical laboratories, and pharmacies. It also provides intensive care, critical care and/or coronary care units, physical therapy; and orthopedic, oncology, and outpatient services; tertiary care services, such as open-heart surgery, neonatal intensive care, and neuroscience; quaternary care in areas, including heart, liver, kidney, and bone marrow transplants for children; gamma-knife brain surgery; and cyberknife surgery for tumors and lesions in the brain, lung, neck, and spine. As of June 30, 2011, it operated 49 acute care hospitals, and a critical access hospital with a combined total of 13,420 licensed beds primarily serving urban and suburban communities in 11 states of the United State s. The company also owns an interest in a health maintenance organization and operate various related health care facilities, including a long-term acute care hospital and various medical office buildings; revenue cycle management and patient communications services businesses; physician practices; captive insurance companies; and other ancillary health care businesses, such as including ambulatory surgery centers, diagnostic imaging centers, and occupational and rural health care clinics. In addition, Tenet Healthcare Corporation owns an interest in a management services subsidiary that provides network development, utilization management, claims processing, and contract negotiation services to physician organizations and hospitals that assume managed care risk. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.
- [By Ben Levisohn]
Tenet Healthcare (THC) has dropped 2.3% to $47.23 after the hospital operator missed earnings forecasts and offered lower-than-expected guidance.
Haverty Furniture (HVT) has gained 3.9% to $28.20 after the furniture retailer beat analyst forecasts.
- [By Sinisa Persich]
Tenet Healthcare Corp. (THC) has broken out of a bullish flag from its 20% run-up from under 40.00 in the last week of December and first half of January. Also in a one-year, sideways channel, the stock could see a breakout of its consolidation on a move above 47.25.
Top Low Price Stocks To Own For 2015: Lennox International Inc (LII)
Lennox International Inc. (LII) is a provider of climate control solutions. The Company designs, manufactures and markets a range of products for the heating, ventilation, air conditioning and refrigeration (HVACR) markets. Its products and services are sold through multiple distribution channels under brand names, including Lennox, Armstrong Air, Ducane, Bohn, Larkin, Advanced Distributor Products, Service Experts and others. The Company operates in four segments: Residential Heating & Cooling, Commercial Heating & Cooling, Service Experts, and Refrigeration. On January 14, 2011, the Company acquired Kysor/Warren business from The Manitowoc Company. Kysor/Warren is a manufacturer of refrigerated systems and display cases for supermarkets throughout North America and is included in its Refrigeration Segment. In April 2012, it sold its Lennox Hearth Products business to Comvest Investment Partners IV.
Residential Heating & Cooling
The Company manuf actures and markets a range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, and accessories. These products are available in a range of designs, and at a range of price points, and provide a range of home comfort systems. Its advanced distributor products (ADP) operation builds evaporator coils and air handlers under the Advanced Distributor Products brand, as well as the Lennox, brand. ADP sells their own ADP branded evaporator coils to HVAC distribution, comprising over 400 wholesale distributors across North America, as well as, a range of evaporator coils for Allied Air Enterprise.
The Company’s hearth products include factory-built gas, wood-burning and electric fireplaces; free standing wood-burning, pellet and gas stoves; wood-burning, pellet and gas fireplace inserts; gas logs, venting products and accessories. Its fireplaces are built with a blower or fan option. It markets its hearth products under the Lennox, Superio r, Country Collection and Security Chimneys brand names.
The Company competes with United Technologies Corp., Goodman Global, Inc., Ingersoll-Rand plc, Paloma Co., Ltd., Johnson Controls, Inc., Daiken, Nordyne, HNI Corporation and Monessen Hearth Company.
Commercial Heating & Cooling
In North America, the Company manufactures and sells unitary heating and cooling equipment used in light commercial applications, such as low-rise office buildings, restaurants, retail centers, churches and schools. Its product offerings for these applications include rooftop units ranging from 2 to 50 tons of cooling capacity and split system/air handler combinations, which range from 1.5 to 20 tons of cooling capacity. These products are distributed through commercial contractors and directly to national account customers.
In Europe, the Company manufactures and sells unitary products, which range from 2 to 70 tons of cooling capacity, and applied systems with up to 200 tons of cooling capacity. Its European products consist of small package units, rooftop units, chillers, air handlers and fan coils, which serve medium-rise commercial buildings, shopping malls, other retail and entertainment buildings, institutional applications and other field-engineered applications. It manufactures heating and cooling products in several locations in Europe and markets these products through both direct and indirect distribution channels in Europe, Russia, Turkey and the Middle East.
The Company competes with United Technologies Corp., Ingersoll-Rand plc, Johnson Controls, Inc., AAON, Inc. and Daikin Industries, Ltd.
The Company sells a range of its manufactured equipment, parts and supplies, and third-party branded products. It also has Lennox National Account Services business, which is providing service and preventive maintenance to commercial national account customers. It uses a portfolio of management procedures and practic es, including standards for customer service, common informa! tion tech! nology systems and financial controls, a national accounting center and an inventory management program.
The Company competes with Direct Energy, Sears and American Residential Services.
The Company manufactures and markets equipment for the global commercial refrigeration markets under the Heatcraft Worldwide Refrigeration name. It sells these products to distributors, installing contractors, engineering design firms, original equipment manufacturers and end-users. Its commercial refrigeration products for the North American market include condensing units, unit coolers, fluid coolers, air-cooled condensers, compressor racks and air handlers. These products are sold for refrigeration applications to preserve food and other perishables, and are used by supermarkets, convenience stores, restaurants, refrigerated warehouses and distribution centers. As part of the sale of commercial refrigeration products, it provides applic ation engineering for consulting engineers, contractors and others. It also sells products for non-food and various industry applications, such as telecommunications, dehumidification and medical applications.
In international markets, the Company manufactures and markets refrigeration products, including condensing units, unit coolers, air-cooled condensers, fluid coolers, compressor racks and industrial process chillers. The Company has manufacturing locations in Germany, France, Brazil and China. In Australia and New Zealand, it is a wholesale distribution business serving the refrigeration and HVAC industry. It also owns a 50% interest in a joint venture in Mexico, which produces unit coolers, air-cooled condensers, condensing units and compressor racks. It also owns an 8% stock interest in a manufacturer in Thailand, which produces compressors for use in its products and for other HVACR customers.
The Company competes with Hussman Corporation, Emerson Electric Co., United Technologies Corp., GEA Group,! Alfa Lav! al and Sanyo Electric Co., Ltd.
- [By Monica Gerson]
Lennox International (NYSE: LII) is projected to report its Q3 earnings at $1.28 per share on revenue of $877.87 million.
ManpowerGroup (NYSE: MAN) is expected to report its Q3 earnings at $1.08 per share on revenue of $5.08 billion.
- [By Greg Williamson]
Watsco’s current P/E of 24.5 is in the same ballpark as its competitor Lennox International (NYSE: LII ) (NYSE: LII ) (NYSE: LII ) , whose P/E is 23.8. Lennox is a manufacturer of HVAC equipment and components, and will also benefit from HVAC industry tailwinds.