LONDON — The FTSE 100 (FTSEINDICES: ^FTSE ) set a 13-year high of 6,876 points on May 22, and since then it’s been lurching from euphoria to panic on a regular basis, with 100-point swings becoming a near-daily occurrence. But at least things are a little quieter today, with the U.K.’s top-tier index up a relaxed 25 points, or 0.38%, to 6,652 as of 8:30 a.m. EDT.
A number of top companies have also been bouncing around their record share prices. Here are three toying with their peaks today.
BP (LSE: BP ) (NYSE: BP )
The BP share price has been hovering around a 52-week high of 485 pence all week. It’s at 481 pence as I write, having approached 482 pence again around mid-morning. And over the past 12 months, BP shares have gained about 21% as panic from the Gulf of Mexico disaster subsides.
But after such a rise, what’s the current valuation like? Well, with current forecasts for the year to December 2013 suggesting a 35% rise in earnings per share to about 54 pence, that puts the shares on a price-to-earnings ratio of less than nine. And though there is still some uncertainty surrounding the final cost of the oil spill cleanup, that looks cheap to me — especially with a well-covered dividend yield of about 5% being predicted.
Top Sliver Stocks For 2014: Hillenbrand Inc(HI)
Hillenbrand, Inc. designs, manufactures, distributes, and sells funeral service products to licensed funeral directors operating licensed funeral homes. The company?s products include burial caskets, cremation caskets, containers, vaults, urns, and selection room display fixturing for funeral homes, as well as other personalization and memorialization products and services, including Web-based applications, and the creation and hosting of Websites for licensed funeral homes. It markets its products under the Batesville and Options brand name through direct sales force in the United States, Puerto Rico, Canada, Mexico, the United Kingdom, and Australia. The company also designs, produces, markets, sells, and services bulk solids material handling equipment and systems for various industrial markets, including plastics, food, chemicals, pharmaceuticals, power generation, coal mining, pulp and paper, frac sand, industrial minerals, agribusiness, recycling, wood and forest pr oducts, and biomass energy generation. It offers feeders and pneumatic conveying equipment under the K-Tron brand name; and size reduction equipment, such as hammer mills, double-roll crushers, wood and bark hogs, chip sizers, screening equipment, pneumatic and mechanical conveying systems, storage/reclamation systems, and specialty crushers and other equipment under the Pennsylvania Crusher, Gundlach, and Jeffrey Rader brand names. In addition, the company manufactures dry material separation machines that sort dry, granular products based on the particle?s size serving various industries, including frac sand, potash, urea, phosphates, chemical, agricultural, plastics, and food processing. The company sells its material handling equipment and systems worldwide through a combination of a direct sales force, and a network of independent sales representatives and distributors. Hillenbrand, Inc. was founded in 2008 and is headquartered in Batesville, Indiana.
- [By Laura Brodbeck]
Earnings Expected: Buffalo Wild Wings, Inc. (NASDAQ: BWLD), Hillenbrand Inc (NYSE: HI), Sirius XM Holdings Inc. (NASDAQ: SIRI) Economic Releases Expected: German retail sales, French consumer confidence, German unemployment rate, eurozone CPI, eurozone PPI, US trade balance, US redbook
- [By GURUFOCUS]
Hillenbrand Inc. (HI), a diversified industrial company, makes and sells business-to-business products and services for various industries worldwide. Dec. 4, the company increased is quarterly dividend 1.3% to $0.1975 per share. the dividend is payable Dec. 31, 2013, to shareholders of record at the close of business on Dec. 17, 2013. The yield based on the new payout is 2.8%.
Top Sliver Stocks For 2014: Invesco Mortgage Capital Inc (IVR)
Invesco Mortgage Capital Inc., incorporated in June 2008, is a real estate investment trust (REIT). The Company is primarily focused on investing in, financing and managing residential and commercial mortgage-backed securities and mortgage loans, which it collectively refers to as its target assets. The Company’s target assets consist of residential mortgage-backed securities (RMBS) for which the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) or a federally chartered corporation, such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) guarantees payments of principal and interest on the securities. It refers to these securities as Agency RMBS. Its Agency RMBS investments include mortgage pass-through securities and may include collateralized mortgage obligations (CMOs). It also invests in RMBS that are not issued or guaranteed by the United States Govern ment agency (non-Agency RMBS), commercial mortgage-backed securities (CMBS) and residential and commercial mortgage loans.
The Company finances its Agency RMBS, non-Agency RMBS and CMBS investments through short-term borrowings structured as repurchase agreements. The Company’s manager is Invesco Advisors Inc. The Company also finances its investments in certain non-Agency RMBS, CMBS and residential and commercial mortgage loans by contributing capital to the Invesco Mortgage Recovery Feeder Fund (Invesco IMRF Fund) that invests in public-private investment funds (PPIF) managed by the Company’s manager. The Company’s manager is a wholly owned subsidiary of Invesco Ltd.
- [By Amanda Alix]
All mREITs are taking it on the chin
The agency crew, led by heavy hitters Annaly Capital (NYSE: NLY ) , American Capital Agency (NASDAQ: AGNC ) , and Armour Residential (NYSE: ARR ) , have all been close to hitting 52-week lows, but the blood-letting hasn’t stopped there. Even hybrid mortgage REITs, which also buy some non-agency paper, have plunged, as well. Two Harbors (NYSE: TWO ) , which enjoyed such a nice lift post-earnings about a month ago, recently sunk to new lows, and Invesco Mortgage Capital (NYSE: IVR ) has also slipped, even after its CIO’s recent show of faith, making a sizable insider purchase of stock less than two weeks ago.
- [By Amanda Alix]
Analysts at odds over mREITs
Financial analysts have been busy noting the underperformance of mREITs lately, especially since the Fed dropped the QE3 taper bombshell almost two weeks ago — immediately igniting fears of rising interest rates, which would decrease the value of the trusts’ legacy assets, thus dinging book values. The pain hasn’t been limited to the stocks mentioned above, as CYS Investments (NYSE: CYS ) , and even hybrids like Invesco (NYSE: IVR ) , have been on a roller-coaster ride ever since.
- [By Sean Williams]
In contrast, non-agency mREITs often have to be more careful with their leverage since loan defaults actively impact their bottom-line profit, and rapidly rising interest rates, such as what we saw over the past few weeks, can trigger MBS and other security sales at a loss. In return for more risk, non-agency securities pay out higher yields. Take, for example, Invesco Mortgage Capital (NYSE: IVR ) , a buyer of agency and non-agency RMBSes, which delivered what might seem like an uninspiring 1.64% net interest margin in the first quarter with a leverage ratio of 6.4. Now compare that to agency-only mREIT Annaly Capital, whose net interest margin fell 80 basis points from the year-ago period in the first quarter to just 0.91%, but with a higher leverage ratio of 6.6.
Top Sliver Stocks For 2014: Sharps Compliance Corp(SMED)
Sharps Compliance Corp. provides management solutions for medical waste, used healthcare materials, and unused dispensed medications in the United States. The company offers a range of product and service solutions, including sharps recovery system for the containment, transportation, treatment, and tracking of medical waste and used healthcare materials generated outside the hospital and health care facility settings. It also provides takeaway environmental return systems, complete needle collection and disposal systems, Rx takeaway recovery and reporting systems, sharps MWMS, takeaway recovery systems, and sharpstracer solutions. In addition, the company offers various other logistical solutions, such as pitch-it IV poles, trip lessystem, sharps pump and asset return boxes, sharps secure needle collection and containment systems, sharps recovery system needle collection and mailback disposal systems, isowash linen recovery systems, and biohazard spill clean-up kit and di sposal systems. It serves consumers in government, home health care, retail clinics and immunizing pharmacies, pharmaceutical manufacturers, professional offices, hospitality, commercial, industrial, and agriculture markets. Sharps Compliance Corp. was founded in 1992 and is headquartered in Houston, Texas.
- [By CRWE]
Sharps Compliance Corp. (Nasdaq:SMED), a leading full-service provider of cost-effective solutions designed for the proper management of medical waste, used healthcare materials and unused dispensed medications, will release its fourth quarter and fiscal year end 2012 results (ended June 30, 2012) before the opening of financial markets on Wednesday, August 15, 2012.
Top Sliver Stocks For 2014: Audience Inc (ADNC)
Audience, Inc., incorporated on May 24, 2011, is a provider of voice and audio solutions that improve voice quality and the user experience in mobile devices. The Company’s solutions include hardware-accelerated digital signal processors (DSPs), and audio codecs and associated algorithms for noise suppression in mobile devices. Its computational auditory scene analysis (CASA) maps the sound separation functions in human hearing, into a computational framework. The Company’s platform consists of its DSPs and audio codec, analog and mixed signal circuits and algorithms for voice isolation and noise suppression.
The Company also provides its AuViD graphical design tools to original equipment manufacturers (OEMs). The Company had sold over 250 million processors to its OEM customers as of December 31, 2012. In addition to the mobile device market, the Company’s voice and audio technology is also applicable to a range of other market segments, including automobile infotainment systems, digital cameras, digital televisions, headsets and set top boxes.
The Company’s product portfolio supports both analog and digital interfaces. As of December 31, 2012, the Company offered eS515, eS325, eS305, eS310, eS110, A1028 and A1026 custom voice and audio processors for device platforms, including smartphones, feature phones and media tablets. eS515 is a third generation voice and audio processor with an integrated audio codec, featuring support of three-microphones; eS325is a third generation voice and audio processor that features simultaneous three microphone processing; eS305 is a second generation voice and audio processor utilizing new hardware acceleration architecture and algorithms for far-field, wideband communications and capable of advanced speech recognition assist, and uses an all digital interface; eS310, provides similar capabilities to the eS305; eS110 is a first generation narrowband voice processor designed for re al-time communications and far-field as well as near-field u! se with features such as acoustic echo cancelation, voice equalization and automatic gain control; A1026, is a first generation narrowband voice processor designed for real-time communications and typical near-field use, and A1028, which is a first generation narrowband voice processor designed for real-time communications and far-field, as well as near-field use.
The Company derives its revenue primarily from the sale of voice and audio processors to OEMs, which incorporate them into mobile devices. As of December 31, 2012, OEMs, CMs and distributors worldwide had purchased more than 250 million of its processors and incorporated them in over 140 mobile device models.
The Company competes with Maxim, ON Semiconductor, Qualcomm, Texas Instruments Incorporated, Wolfson Microelectronics plc, DSP Group, Inc. and Yamaha Corporation.
- [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 Audience (Nasdaq: ADNC ) , whose recent revenue and earnings are plotted below.
Top Sliver Stocks For 2014: Neurocrine Biosciences Inc.(NBIX)
Neurocrine Biosciences, Inc. engages in the discovery, development, and commercialization of drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. It develops drugs for endometriosis, stress-related disorders, pain, tardive dyskinesia, uterine fibroids, diabetes, insomnia, and other neurological and endocrine-related diseases and disorders. The company?s products in clinical development include Elagolix, a Phase II drug for endometriosis; Vesicular Monoamine Transporter 2 Inhibitor (VMAT2), a Phase II drug for movement disorders; CRF2 Peptide Agonist, a Phase II drug for cardiovascular diseases; CRF1 Antagonist, a Phase II drug for stress-related disorders; and Elagolix, a Phase II drug for uterine fibroids. Its research programs comprise G Protein-Coupled Receptor 119 (GPR119) for type II diabetes; VMAT2 for schizophrenia; GnRH Antagonists for men?s and women?s health, and oncology; Antiepileptic Drugs for epilepsy, ess ential tremor, and pain; and G Protein-Coupled Receptors for other conditions. The company has collaborations with GlaxoSmithKline to develop and commercialize CRF antagonists for psychiatric, neurological, and gastrointestinal diseases; Dainippon Sumitomo Pharma Co. Ltd. to develop and commercialize Indiplon in Japan; Abbott International Luxembourg S.