Friday, June 27, 2014

The New Shell MLP Is a No-Brainer Buy

Twitter Logo Google Plus Logo RSS Logo Aaron Levitt Popular Posts: 4 Midcap Energy Stocks to Buy Now4 Big Energy Stocks To Play China's Rising Natural Gas DemandBuy American: 5 Best U.S. Oil Stocks to Buy Recent Posts: The New Shell MLP Is a No-Brainer Buy Demographic Devastation – Morning Linkfest (June 26) Monsanto Stock Should Keep Growing Like a Weed View All Posts The New Shell MLP Is a No-Brainer Buy

For many energy firms, unlocking shareholder value has been done with three little letters — MLP. Master limited partnerships allow sponsoring firms to avoid taxes on certain midstream and infrastructure assets, while still getting big-time profits from these operations via cash distributions. That tax avoidance and hefty payouts has energy firms from a variety of oil & gas sectors jumping in on the MLP bandwagon.

Shell Gas1 150x150 The New Shell MLP Is a No Brainer BuyIn fact, the largest integrated majors were only ones not singing the praises of MLPs. That is … until a few days ago.

After struggling over the last year, Royal Dutch Shell (RDS.B) has finally announced that it will spin off some of its midstream portfolio into an MLP. For investors, the Shell MLP mean a chance to directly own some of the largest pipeline and gathering networks in North America, which could usher in a new wave of MLP launches from its other major integrated rivals.

Shell Midstream Partners LP

In what could only be seen as a landmark decision, Shell has finally decided that the riches of the MLP tax structure are too great to ignore. Following the lead of Marathon (MRO) and ConocoPhillips (COP), Shell announced that it will sell a stake in its U.S. pipeline business in the second half of this year. RDS will sell 49% of the limited partnership and 2% of the general partner to the public. The new firm will be dubbed Shell Midstream Partners and will trade under the ticker SHLX.

Shell hopes to raise nearly $750 million from the sale.

SHLX will initially own stakes in a portfolio of pipelines and midstream assets that run along the coasts of Texas and Louisiana as well as offshore in the Gulf of Mexico. Additionally, the MLP will own a series of refined petroleum products pipelines linking Shell's refineries to storage and energy trading activities. A crown jewel in SHLX's portfolio is a stake in the Colonial Pipeline, which is the only pipeline that moves oil from Cushing storage depot in the center of the country towards the East Coast.

This small portfolio of midstream assets under SHLX's estimations should throw out about $96.5 million worth of cash for distributions to investors over the next 12 months. However, that is just a drop in the bucket when it comes to the Shell MLPs potential. RDS and SHLX are going to benefit from the parent/MLP "drop-down" relationship in a big way.

After acquiring new pipelines or gathering facilities, general partners often will pass along some of the prime assets into their MLPs. These asset sales are priced at a level that guarantees cash flow accretion for the MLPs and enables the MLPs to raise distributions at a faster rate. SHLX has already announced in its IPO prospectus that plans to use proceeds from the offering to acquire stakes in some pipeline companies owned by Royal Dutch Shell.

And those assets are a doozy…

Shell's midstream assets feature nearly 60 products terminals, 960 storage tanks, and roughly 15,500 miles’ worth of fully/partially owned pipelines. Overall, RDS manages to ship more than 40 different kinds of crude oil and more than 20 different grades of gasoline through that system.

Add in diesel, jet fuel, chemicals, ethylene and other natural gas liquids (NGLs) and Shell moves around 2 billion barrels worth of energy each year through its midstream assets. That network size puts it on par with current midstream leader Enterprise Products Partners LP. (EPD) when looking at actual assets.

And almost of that has the potential to be "dropped down" in SHLX over the next few years, creating plenty of juicy gains for investors.

Get Ready To Buy The Shell MLP

With Shell being the first integrated super major to consider creating a MLP for its midstream assets, I suspect that investors will go gaga over the new company. Based on history, SHLX is going to be a monster. When Marathon and Phillips 66 (PSX) spun off their midstream assets — as MPLX (MPLX) and Phillips 66 Partners (PSXP), respectively — the deals were oversubscribed and the MLPs traded at some of the lowest initial yields in history.

Given that RDS is actually bigger than both of those firms, the Shell MLP should follow suit and have an amazing first year. And like MPLX and PSXP, the new Shell MLP should be able to quickly grow its distribution as it buys more midstream assets from its parent. That's a huge win for investors, whether they buy it on the IPO or subsequent following weeks. I also suspect that SHLX will eventually be included in top MLP indices like the Alerian over time.

All in all, SHLX should prove to be a great long-term pick in the MLP space for investors. Its dropdown potential is enormous as will its cash flows over the longer haul.

It also raises the question when rival super majors Exxon Mobil (XOM) and Chevron (CVX) will follow suit and launch their own MLP units. CVX has recently announced a strategic “realignment” of its gas and midstream businesses, which means it's probably just a matter of time.

As investors wait for that launch, the Shell MLP should be a great income and growth pick when it finally goes public.

As of this writing, Aaron Levitt was long MPC.

Tuesday, June 24, 2014

4 Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Hated Earnings Stocks You Should Love

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Rocket Stocks Worth Buying Now

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Ariad Pharmaceuticals

Ariad Pharmaceuticals (ARIA), an oncology company, is engaged in the discovery, development and commercialization of medicines for cancer patients. This stock closed up 5.7% to $8.52 in Tuesday's trading session.

Tuesday's Range: $8.02-$8.55

52-Week Range: $2.15-$23.00

Tuesday's Volume: 11.92 million

Three-Month Average Volume: 20.55 million

From a technical perspective, ARIA spiked sharply higher here right off its 50-day moving average of $8.04 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $7.36 to $7.38 and shares of ARIA have rallied higher off those levels. That rally has now pushed ARIA within range of triggering a near-term breakout trade. That trade will hit if ARIA manages to take out some near-term overhead resistance at $8.56 with high volume.

Traders should now look for long-biased trades in ARIA as long as it's trending above those double bottom support levels and then once it sustains a move or close above $8.56 with volume that hits near or above 20.55 million shares. If that breakout gets underway soon, then ARIA will set up to re-test or possibly take out its next major overhead resistance levels at $9.13 to $9.22. Any high-volume move above those levels will then give ARIA a chance to tag $9.83 to its 200-day moving average of $11.22.

Verso Paper

Verso Paper (VRS) produces and sells coated papers in the U.S. This stock closed up 6.2% to $3.07 in Tuesday's trading session.

Tuesday's Range: $2.76-$3.24

52-Week Range: $0.52-$5.55

Tuesday's Volume: 1.90 million

Three-Month Average Volume: 832,287

From a technical perspective, VRS ripped sharply higher here and broke out above some near-term overhead resistance levels at $2.98 to $3 with heavy upside volume. This stock closed just a bit off its intraday high of $3.24 after it finished the trading session at $3.07. Market players should now look for a continuation move higher in the short-term if VRS can manage to take out Tuesday's high of $3.24 to some more key near-term overhead resistance levels at $3.32 to $3.40 with strong volume.

Traders should now look for long-biased trades in VRS as long as it's trending above its 50-day at $2.62 or above more near-term support at $2.50 and then once it sustains a move or close above $3.24 to $3.40 with volume that hits near or above 832,287 shares. If that move gets started soon, then VRS will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.50.

Hyperdynamics

Hyperdynamics (HDY), an independent oil and gas exploration company, is engaged in the acquisition, exploration and development of oil and gas properties in the Republic of Guinea, Northwest Africa. This stock closed up 12% to $1.95 in Tuesday's trading session.

Tuesday's Range: $1.71-$1.95

52-Week Range: $1.13-$7.00

Tuesday's Volume: 273,000

Three-Month Average Volume: 271,169

From a technical perspective, HDY spiked sharply higher here right off some near-term support at $1.70 with above-average volume. This stock recently gapped down sharply from over $5 to $1.13 with heavy downside volume. Following that move, shares of HDY have started to trend sideways between $1.70 on the downside and $2.42 on the upside. Market players should now look for a continuation move higher in the short-term if HDY manages to take out Tuesday's high of $1.95 to more near-term overhead resistance at $2.15 with high volume.

Traders should now look for long-biased trades in HDY as long as it's trending above support at $1.70 and then once it sustains a move or close above $1.95 to $2.15 with volume that hits near or above 271,169 shares. If move starts soon, then HDY will set up to re-test or possibly take out its next major overhead resistance levels at its gap-down-day high of $2.42. Any high-volume move above that level will then give HDY a chance to re-fill some of its previous gap that stared above $5.

Plug Power

Plug Power (PLUG), an alternative energy technology provider, engages in the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road markets worldwide. This stock closed up 6.2% to $7.54 in Tuesday's trading session.

Tuesday's Range: $6.85-$7.68

52-Week Range: $0.15-$11.72

Tuesday's Volume: 41.49 million

Three-Month Average Volume: 49.77 million

From a technical perspective, PLUG spiked sharply higher here right above some near-term support at $6.21 with decent upside volume. This spike higher on Tuesday is starting to push shares of PLUG within range of triggering a near-term breakout trade. That trade will hit if PLUG manages to clear some near-term overhead resistance levels at $8 to $8.48 with strong upside volume.

Traders should now look for long-biased trades in PLUG as long as it's trending above Tuesday's low of $6.85 or above some near-term support at $6.21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 49.77 million shares. If that breakout triggers soon, then PLUG will set up to tag $10 or even its 52-week high at $11.72.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Breakout Trades From the Tech Sector



>>3 Stocks in Breakout Territory With Big Volume



>>5 Toxic Stocks That Could Sink Your Portfolio

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


SP500 ETF Trading Strategies & Plan of Attack for This Week

Index ETF Trading Strategies: Stocks have kick started this week with a 0.85% pop in price but the big question is if the market can hold up. Last week stocks repeatedly gap higher and sold off with strong volume telling us that institutions are slowing phasing out of stocks (distribution selling) unloading shares into strength and passing them onto the a average investor to be left holding bag.

I want to show you a couple charts which show the price action, volume and money flow of the SP500 so you have a visual of what I am talking about.

30 Minute Intraday SP500 Chart – ETF Trading Strategies

In the chart below you can see the price gaps followed by selling. Why is this important? It is important because during a down trend the market makers and big money plays who have the money and tools to manipulate the markets will allow the market drift higher or they will run price up in overnight or premarket trading when volume is light. Once the 9:30am ET opening bell rings volume and liquidity spike which allows the big money player to sell remaining long positions and or add to short positions they have.

If you look at the blue on balance volume line at the bottom of the chart you can clearly see that more contracts are being sold than bought which is typically an early warning sign that the market is about to fall farther.

ETF Trading Strategies

Automated Trading System – 30 Minute ES Futures Chart

Below is a marked up screen shot of my automated trading system which I use for timing both futures and ETF trading strategies. The color coded bars tell you the market trend along with the strength of buyers and sellers.

When you couple market cycles, trends, volume/money flow, along with chart patterns we can forecast and trade markets with a high degree of accuracy in terms of market direction and timing. Ross Clark & I talk about cycle analysis, market stages etc… which you can listen to live here:http://talkdigitalnetwork.com/2014/03/this-week-in-money-129/

Automated Trading Systems

My Index ETF Trading Strategies Conclusion:

Just to be clear on the current market trend and my overall outlook let me explain a little more. Overall, the broad stock market remains in an uptrend. Thursday and Friday of last week we started getting orange bars on the chart telling us that cycles, volume, and momentum are now neutral. It's 50/50 on which way the market will go from here, so until the market internals (cycles, volume, breadth) push the odds in our favor enough for a short sell trade or a new long entry we will not add new positions to our portfolio.

It is important to understand that nearly 75% of stocks/investments move with the broad market. So we don't want to add more long positions when the odds are not in favor of higher prices. Trading in general is not hard to do, but creating, following, executing properly money and position management is. If you have trouble with following or creating an ETF trading strategy you can have my ETF trading system for rising, falling and sideways markets traded automatically in your trading account.

Learn more here about my Automated Trading Systems

Chris Vermeulen
www.TheGoldAndOilGuy.com
www.AlgoTrades.net

Monday, June 23, 2014

3 Biotech Stocks Under $10 to Trade for Breakouts

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Big Trades to Brace for a Correction

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Amarin

Amarin (AMRN), a biopharmaceutical company, focuses on the development and commercialization therapeutic products for the treatment for cardiovascular diseases in the U.S. This stock closed up 5.7% to $1.85 in Thursday's trading session.

Thursday's Range: $1.71-$1.85

52-Week Range: $1.36-$7.98

Thursday's Volume: 2.54 million

Three-Month Average Volume: 4.99 million

From a technical perspective, AMRN spiked sharply higher here back above its 50-day moving average of $1.82 with lighter-than-average volume. This spike is quickly pushing shares of AMRN within range of triggering a major breakout trade. That trade will hit if AMRN manages to take out Thursday's high of $1.85 to some more key overhead resistance at $1.99 with high volume.

Traders should now look for long-biased trades in AMRN as long as it's trending above Thursday's low of $1.71 or above more near-term support levels at $1.68 to $1.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.99 million shares. If that breakout materializes soon, then AMRN will set up to re-fill some of its previous gap-down-day zone from January that started near $2.50. Any high-volume move above $2.75 will then give AMRN a chance to re-fill some of another previous gap-down-day zone last October that started above $4.50.

Inovio Pharmaceuticals

Inovio Pharmaceuticals (INO), together with its subsidiaries, discovers and develops synthetic vaccines and immune therapies focusing on cancers and infectious diseases. This stock closed up 12.6% to $3.64 in Thursday's trading session.

Thursday's Range: $3.07-$3.64

52-Week Range: $0.49-$3.95

Thursday's Volume: 17.07 million

Three-Month Average Volume: 7.84 million

From a technical perspective, INO skyrocketed higher here right off its 50-day moving average of $3.06 with strong upside volume. This spike is starting to push shares of INO within range of triggering a big breakout trade. That trade will hit if INO manages to take out Thursday's high of $3.64 to some more key overhead resistance levels at $3.89 to its 52-week high at $3.95 with high volume.

Traders should now look for long-biased trades in INO as long as it's trending above its 50-day at $3.06 or above $3 and then once it sustains a move or close above those breakout levels with volume that hits near or above 7.84 million shares. If that breakout gets underway soon, then INO will set up to enter new 52-week-high territory above $3.95, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5.

Adamis Pharmaceuticals

Adamis Pharmaceuticals (ADMP), a biopharmaceutical company, engages in the development and commercialization of specialty pharmaceutical products in the therapeutic areas of oncology, immunology and infectious diseases, and allergy and respiratory. This stock closed up 0.79% to $6.40 in Thursday's trading session.

Thursday's Range: $6.31-$6.40

52-Week Range: $3.40-$13.09

Thursday's Volume: 76,000

Three-Month Average Volume: 109,711

From a technical perspective, ADMP trended modestly higher here with lighter-than-average volume. This stock has been consolidating and trending sideways for the last three, with shares moving between $6.05 on the downside and $7.25 on the upside. Shares of ADMP are now starting to perk up a bit right below its 50-day moving average of $6.50. Market players should now look for a move back above its 50-day moving average of $6.50 with strong volume.

Traders should now look for long-biased trades in ADMP as long as it's trending above some key near-term support levels at $6.12 to $6.05 and then once it sustains a move or close above its 50-day at $6.50 with volume that hits near or above 109,711 shares. If we get that move soon, then ADMP will set up to re-test or possibly take out its next major overhead resistance levels at $6.90 to $7.10, or even $7.25. Any high-volume move above those levels will then give ADMP a chance to tag $8 to $9.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Stocks Spiking on Big Volume



>>Beat the S&P in 2014 With the Stocks Everyone Else Hates



>>3 Hot Stocks to Trade (or Not)

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Sunday, June 22, 2014

Easter's Peeps hatch to year-round snack

Peeps have been blown up in microwaves. Destroyed in dioramas. And even stirred with vodka and O.J. into so-called Peepdrivers.

But Peeps — those sticky, icky, chick-shaped marshmallow treats common as pink, plastic grass in Easter baskets — mostly disappear each year with the Easter Bunny. Until now.

Peeps are about to become year-round, Peep-able snacks: Peeps Minis. The miniaturized treats — about 40% the size of conventional Peeps — will be sold in reclosable, stand-up bags at the nation's major retailers. Just Born, the company that makes Peeps, Mike & Ikes and Hot Tamales, on Monday, will announce plans to launch the $2.69 bags stuffed with 24 Peeps on May 1.

That's right: a world with endless Peeps.

"I challenge you to find any other food product where a full one-third of the purchases don't go to their normal, intended use: eating," jokes Brian Bachrach, senior marketing manager of innovation.

Peeps Minis come in Millennial-targeting flavors: sour watermelon, strawberry creme and chocolate creme. While the 61-year-old brand has been sold for years at other holidays like Halloween, Christmas and Valentine's Day, this is its first bid to be a full-time, year-round player on the candy aisle.

The move comes at a time virtually every candy maker has miniaturized its key brands and stuffed them into bags whose contents snack-obsessed consumers can grab by the handful. "We're making every day into a holiday," says Bachrach.

But one new products guru has her doubts about year-round Peeps. "I think that may dilute the fun and wonder," says Lynn Dornblaser, director of innovation & insight at the research firm, Mintel. "Peeps mean springtime. They mean nostalgia. I think year-round Peeps would lessen the impact and harm the brand long-term."

Not at all, counters Bachrach. In fact, he says, the brand is mostly responding to constant consumer demand for Peeps year-round. There are Peeps fan clubs. Peeps constantly garner social med! ia buzz on Twitter and Facebook — with 300,000 Facebook followers. And there are crazed Peeps fans who buy them by the carton and oh-so-slowly eat them through the seasons.

"We are supremely confident in the success of Peeps on an every day basis," says Bachrach. "For the benefit of the brand, these will be highly incremental sales."

Ultimately, Bachrach says, the every-day sales of Peeps could even top seasonal Easter sales. Because Just Born is privately held, he declined to divulge sales. But he did note that it's the 10th largest candy company in America. Sales, he said, are in the "hundreds of millions — not billions."

Meanwhile, Just Born also is increasing the year-round presence of Peeps via partnerships with Six Flags, Disney and Toys R Us.

Never mind that the critters are nutritional duds. The three main ingredients: sugar, corn syrup and gelatin. A single serving of Peeps Minis (10 mini chicks) comes with 140 calories, 34 grams of carbohydrates, 31 grams of sugar. Oh yes, and 1 gram of protein.

Precisely how does Dornblaser, the researcher, eat her Peeps? Well, she insists that doesn't eat them very often. But when she does succumb and munch a Peep or two, she concedes: "It's head first."

Saturday, June 21, 2014

Top Promising Companies For 2015

Part of what keeps the world of energy interesting is that new oil and gas discoveries are constantly being made. Most recently, London-based oil giant BP (NYSE: BP  ) and its joint venture partners announced what could be a major new gas discovery off the eastern coast of India. Let's take a closer look.

Reliance and BP's new gas discovery
Last month, Reliance Industries, India's largest publicly traded company by revenue and BP's joint venture partner, announced what it called a "significant" discovery in an offshore gas field it owns jointly with the British oil major.

Investors greeted the announcement enthusiastically, responding by sending Reliance shares sharply higher. The new find, dubbed D-55, marks a promising new chapter in the two companies' efforts to explore the "KG-D6" deepwater gas block located off India's eastern coast.

Since BP bought a 30% stake in the acreage for $7.2 billion back in 2011, major technical difficulties and regulatory hurdles had beset exploration in KG-D6. But new regulations enacted by India's government earlier this year cleared the path for Reliance and its joint-venture partners to move forward with exploring the promising new prospect.

Top Promising Companies For 2015: Paradise Inc (PARF)

Paradise, Inc., incorporated in September, 1961, conducts operations through two business segments: Candied Fruit and Molded Plastics. The Candied Fruit segment is engaged in the production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Based on market conditions, it is also engaged in the processing of frozen strawberry products for sale to commercial and institutional users, such as preservers, dairies and drink manufacturers. The Molded Plastics segment is engaged in the production of plastic containers for the Company�� products and other molded plastics for sale to unaffiliated customers.

During the year ended December 31, 2011, in terms of candied fruit sales, approximately 20% were shipped to manufacturing bakers and other institutional users, with the balance being sold through supermarkets and other retail outlets for ultimate use in the home. Sales to retail outlets are usually generated through registered food brokers operating in exclusively franchised territories.

The Company�� trademarks Paradise, Dixie, Mor-Fruit and Sun-Ripe are registered with the appropriate Federal and State authorities for use on the Company�� candied fruit. During 2011, the Company derived approximately 15% of its consolidated net sales from Wal-Mart Stores, Inc.

Advisors' Opinion:
  • [By Geoff Gannon]

    What is the advantage of being a huge company? There are some. For one, we know the business is ��or was ��growable. A lot of small companies stay small because their circle of competence is small. Paradise (PARF) is an over the counter stock. It has a market cap of $10 million. And it dominates the candied fruit market in the U.S. Why isn�� the company bigger?

Top Promising Companies For 2015: Thales SA (HO)

Thales SA is a France-based provider of integrated solutions and equipment of security systems primarily to the aerospace and defense markets. The Company operates in numerous countries through its divisions, including Aerospace, specialized in onboard equipment, electronics and systems for the civil and military markets; Space, offering solutions combining space and terrestrial technologies; Defence, which designs and delivers systems for all four environments: air, land, sea and space; Security, which offer the emergence of new types of threats from terrorism and organized crime to drug trafficking, mass immigration and cyber attacks; and Transportation, which offers a range of railways signaling solutions and integrated transportation systems, to ensure safe and secure transportation of operators, freight and passengers. In November 2013, it acquired XPI Simulation Ltd. In February 2014, it created a new business line called Critical Information Systems and Cybersecurity. Advisors' Opinion:
  • [By USATODAY 8 a.m. EST February 15]

    Alex Pettyfer about to take the wheel of the Maserati Gran Turismo for a joyride with co-star Dayo Okeniyi.(Photo: HO)

    Pettyfer and Okeniyi's character end up joyriding in the car along with Gabriella Wilde, who plays the rich girl falling in love with Pettyfer.

Top Oil Companies To Watch In Right Now: Century Aluminum Company(CENX)

Century Aluminum Company, through its subsidiaries, produces primary aluminum in the United States, China, and Iceland. The company offers high purity primary aluminum, molten aluminum, standard-grade ingots, extrusion billets, and other value-added primary aluminum products. It also holds a 40% joint venture interest in a carbon anode and cathode facility located in the Guangxi Zhuang Autonomous Region of south China. The company was founded in 1981 and is headquartered in Monterey, California.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Basic materials shares jumped about 1.72 percent in Monday's trading. Leading the sector was strength from Century Aluminum Co (NASDAQ: CENX) and Horsehead Holding (NASDAQ: ZINC). In trading on Monday, utilities shares dropped by 0.13 percent.

  • [By Rich Smith]

    This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include upgrades for both Century Aluminum (NASDAQ: CENX  ) and Deutsche Bank (NYSE: DB  ) . But the news isn't all good, so let's start off with a few words on why...

  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Basic materials shares jumped about 1.72 percent in Monday's trading. Leading the sector was strength from Century Aluminum Co (NASDAQ: CENX) and Horsehead Holding (NASDAQ: ZINC). In trading on Monday, utilities shares dropped by 0.13 percent.

Top Promising Companies For 2015: IsoRay Inc (ISR)

IsoRay, Inc. (IsoRay), incorporated on June 15, 2004, develops, manufactures and sells isotope-based medical products and devices for the treatment of cancer and other malignant diseases. IsoRay International LLC (International) is a wholly owned subsidiary of the Company. IsoRay obtained clearance from the Food and Drug Association (FDA) for treatment for all solid tumor applications using Cesium-131. Such applications include prostate cancer; ocular melanoma; head, neck and lung tumors; breast cancer; liver cancer; brain cancer; colorectal cancer; gynecological cancer; esophageal cancer, and pancreatic cancer. The seed may be used in surface, interstitial and intracavity applications for tumors with known radio sensitivity. The Company has an existing distribution agreement with UralDial LLC (UralDial) that allows UralDial to distribute Proxcelan Cs-131 brachytherapy seeds in Russia. The Company, through UralDial, has regulatory approval to sell Cs-131 seeds in Russia.

IsoRay markets the Proxcelan Cesium-131 brachytherapy seed for the treatment of prostate cancer; lung cancer; ocular melanoma; head and neck cancers; colorectal cancer, brain cancer; and gynecological cancer. The Company focuses to market Cesium-131 for the treatment of other malignant disease, such as breast cancer, in the near future through the use of existing technologies that have received FDA-clearance. Cesium-131 is a radioactive isotope that can be produced by the neutron bombardment of Barium-130 (Ba-130). When placed into a nuclear reactor and exposed to a flux of neutrons, Ba-130 becomes Ba-131, the radioactive material that is the parent isotope of Cesium-131. The radioactive isotope Cesium-131 is normally produced by placing a quantity of stable non-radioactive barium (ideally barium enriched in isotope Ba-130) into the neutron flux of a nuclear reactor. The irradiation process converts a small fraction of this material into a radioactive form of barium (Ba-131). The Ba-131 decays by electron capture to the ! radioactive isotope of interest (Cesium-131).

As of June 30, 2011, IsoRay had agreements with several independent radiopharmacies to assay, preload, and sterilize loose seeds. During the fiscal year ended June 30, 2011, the Company loaded approximately 90% of Mick cartridges in the Company's own facility, which accounted for approximately 61% of seeds sold. Approximately 33% of seeds sold are strand configurations, including strands preloaded in needles and the remaining 6% of seeds are sold as loose seeds.

Advisors' Opinion:
  • [By James E. Brumley]

    I hate to be the one to say I told you so, but, I told you so. Back on February 26th I suggested IsoRay, Inc. (NYSEMKT:ISR) shares were a budding breakout play. The 48% rally that's played out for ISR in the meantime unfurled right on cue. While overbought in the very short run, this small cap stock looks like it's earning the right to be compared to the likes of bigger brothers in the cancer-treatment space... names like Roche Holding Ltd. (OTCMKTS:RHHBY) or Theragenics Corporation (NYSE:TGX).

Top Promising Companies For 2015: NRG Yield Inc (NYLD)

NRG Yield, Inc., incorporated on December 20, 2012, serves as the primary vehicle, through which NRG Energy, Inc. will own, operate and acquire contracted renewable and conventional generation and thermal infrastructure assets. The Company owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. The Company�� contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net megawatt. The Company also own thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,098 net megawatt and electric generation capacity of 123 net megawatt. In December 2013, it acquired the assets of privately held Energy Systems Company.

The Company�� thermal infrastructure assets provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals and governmental units in ten locations, principally through long-term contracts or pursuant to rates regulated by state utility commissions. The Company�� conventional operations consist of 910 net megawatt of natural gas and dual-fired generation assets, Marsh Landing and GenConn, located in the West and Northeast regions of the United States, respectively. The Company�� seven utility-scale solar generation assets generate electricity through the use of photovoltaic panels, with each facility equal to or exceeding 20 megawatt and collectively totaling 303 net megawatt of capacity. These facilities are located in Arizona, California and New Mexico, all states with attractive solar resources. The Company�� distributed solar generation facilities, which it generally define as facilities of less than 20 megawatt in operating capacity, each generate electricity through the use of photovoltaic panels.

The Company�� wind! operations are consists of the 101 megawatt South Trent wind farm located near Sweetwater, Texas. It consists of 44 Siemens 2.3 megawatt wind turbines capable, at rated capacity, of powering approximately 80,000 homes. The Company�� thermal operations are consists of district energy systems and combined heat and power plants (Energy Centers) that utilize an energy-efficient, environmentally sound method of heating and cooling buildings. These Energy Centers produce steam, hot water and/or chilled water and in some instances, electricity at a central plant.

Advisors' Opinion:
  • [By Robert Rapier]

    Early returns suggest this proposition is generating plenty of enthusiasm. When�NRG Energy�(NYSE: NRGY) became the first company to spin off a YieldCo subsidiary holding solar generating assets last July, the offering price for�NRG Yield�(NYSE: NYLD) provided for a 5.5 percent yield at the promised dividend rate. The IPO was more than 10 times oversubscribed — an indication of pent up investor demand for such offerings. Less than 11 months later, NYLD’s share price has more than doubled, so even though it has already raised its dividend the yield is down to 2.7 percent.

  • [By Richard Stavros]

    For example, NRG Energy recently created a yield company spinoff, known as NRG Yield Inc (NYSE: NYLD). NRG Yield holds the parent company�� contracted assets and trades at a much higher multiple than NRG Energy.

  • [By David Dittman]

    Question: Any comments on NRG Yield Inc (NYSE: NYLD), the IPO of NRG Energy from this year? Its looks set for strong dividend growth in the next couple years.

Top Promising Companies For 2015: Turkiye Garanti Bankasi AS (GARAN)

Turkiye Garanti Bankasi AS (the Bank) is a Turkey-based financial services company. The Bank provides retail, commercial, corporate and small and medium size enterprises (SME) banking, leasing, insurance, asset management and factoring services. Other operation heading under the banking segment include mainly treasury and investment banking activities as well as unallocated income and expense items. It has a network of 822 domestic branches, seven foreign branches, three representative offices abroad and 104 offices. In addition to its branches, the Bank has 100% ownership in three banks each of which is located in Amsterdam, Bucharest and Moscow. The Bank and its affiliates operate principally in Turkey, but also have operations in the Netherlands, Romania, Russia, Turkish Republic of Northern Cyprus, Malta, Luxembourg and Germany. Advisors' Opinion:
  • [By Ian Sayson]

    Russia�� Micex Index declined, trimming its weekly gain to 2.5 percent. OAO Mechel, the nation�� biggest producer of coal for steelmakers, slumped 1.7 percent. The Borsa Istanbul National 100 Index sank 2 percent as Turkiye Garanti Bankasi AS (GARAN) led losses in lenders. Benchmark gauges in the Czech Republic and Hungary declined at least 1.2 percent.

  • [By Halia Pavliva]

    Turkiye Garanti (GARAN) Bankasi AS, the largest Turkish lender by market value, led gains on the Borsa Istanbul National 100 Index, which rose 1.5 percent. Garanti climbed 1.3 percent after slumping 4.1 percent to the lowest level since Sept. 13 yesterday. The government is selling $1.25 billion of five-year Islamic bonds today, according to a person with direct knowledge of the transaction, who asked not to be identified because the information is private.

Top Promising Companies For 2015: CyberOptics Corporation (CYBE)

CyberOptics Corporation supplies optical process control sensors and inspection systems to control the manufacturing process and ensure the quality of electronic circuit boards worldwide. The company also manufactures and sells sensors that assist with yield enhancement during semiconductor fabrication. Its products include surface mount technology (SMT) electronic assembly alignment sensors, including LaserAlign sensor that is incorporated into component placement machines used in the SMT production lines; BoardAlign camera, which identifies fiducial markings on a circuit board and aligns the board in the component placement machine prior to component placement; and InPrinter inspection camera that identifies fiducial markings on a circuit board to ensure accurate board registration prior to placement of solder paste. The company also offers photovoltaic and fuel cell alignment sensors, such as solar wafer alignment cameras for alignment measurements; and embedded process verification inspection technology products and solder paste inspection sensors. In addition, it provides SMT stand-alone inspection system products, which include solder paste inspection and automated optical inspection products; and WaferSense sensors that provide measurements of critical factors in the semiconductor fabrication process, as well as wafer mapping and alignment sensors, frame grabber products, and machine vision subsystems. The company sells its products to the manufacturers of electronic circuit board assembly equipment, manufacturers of semiconductor DRAM memory, and semiconductor capital equipment manufacturers, as well as end-user electronic assembly manufacturers, including original design manufacturers and electronic manufacturing service providers. CyberOptics Corporation markets its products through independent representatives and distributors. The company was founded in 1984 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:
  • [By John Emerson]

    I even recorded a tax loss carry-forward on my original purchase of CAMT for which I had paid $2.05 per share. It seems that I was a slow learner in regard to the necessity of selling AOI companies long before they entered a cyclical trough in their earnings. Happily, I have since remedied that problem. For informational purposes I must disclose that in the spring, I repurchased shares of CAMT and made a larger purchase in a Cyberoptics (CYBE) another AOI company, which was near a multiyear low at the time.

Top Promising Companies For 2015: PBF Energy Inc (PBF)

PBF Energy Inc. (PBF Energy), incorporated on November 7, 2011, is an independent petroleum refiners and suppliers of unbranded transportation fuels, heating oils, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company produces a range of products at each of its refineries, including gasoline, ultra-low-sulfur diesel (ULSD), heating oil, jet fuel, lubricants, petrochemicals and asphalt. The Company sells its products throughout the Northeast and Midwest of the United States, as well as in other regions of the United States and Canada, and are able to ship products to other international destinations. As of December 31, 2011, the Company owned and operated three domestic oil refineries and related assets. The Company's refineries have a combined processing capacity of approximately 540,000 thousand barrels per day. The Company's three refineries are located in Toledo, Ohio, Delaware City, Delaware and Paulsboro, New Jersey.

The Company's Midcontinent refinery at Toledo processes light, sweet crude, has a throughput capacity of 170,000 thousand barrels per day and a Nelson Complexity Index of 9.2. Toledo's West Texas Intermediate (WTI) based crude is delivered through pipelines, which originate in both Canada and the United States. The Company's East Coast refineries at Delaware City and Paulsboro have a combined refining capacity of 370,000 thousand barrels per day and Nelson Complexity Indices of 11.3 and 13.2, respectively. These refineries process medium and heavy and sour crudes.

Delaware City Refinery

The Delaware City refinery is located on a 5,000-acre site, with access to waterborne cargoes and a distribution network of pipelines, barges and tankers, truck and rail. Delaware City is a fully integrated operation, which receives crude through rail at the crude unloading facility, or ship or barge at its docks located on the Delaware River. The crude and other feedstocks are transported, through pipes, to a tank! farm where they are stored until processing. In addition, there is a 17-bay, 50,000 thousand barrels per day capacity truck loading rack located adjacent to the refinery and a 23-mile interstate pipeline that are used to distribute clean products.

The Delaware City refinery has a throughput capacity of 190,000 thousand barrels per day and a Nelson Complexity Index of 11.3. The Delaware City refinery processes a range of medium to heavy, sour crude oils. The refinery has conversion capacity with its 82,000 thousand barrels per day fluid catalytic cracking (FCC) unit, 47,000 thousand barrels per day fluid coking unit (FCU) and 18,000 thousand barrels per day hydro cracking unit with vacuum distillation. Hydrogen is provided through the refinery's steam methane reformer and continuous catalytic reformer. The Delaware City refinery has total storage capacity of approximately 10 million barrels.

Paulsboro Refinery

Paulsboro has a throughput capacity of 180,000 thousand barrels per day and a Nelson Complexity Index of 13.2. The Paulsboro refinery is located on approximately 950 acres on the Delaware River in Paulsboro, New Jersey, just south of Philadelphia and approximately 30 miles away from Delaware City. Paulsboro receives crude and feedstocks through its marine terminal on the Delaware River. Paulsboro is one of two operating refineries on the East Coast with coking capacity, the other being Delaware City. Units at the Paulsboro refinery include crude distillation units, vacuum distillation units, an FCC unit, a delayed coking unit, a lube oil processing unit and a propane de-asphalting unit. The Paulsboro refinery processes a range of medium and heavy, sour crude oils. The Paulsboro refinery produces gasoline, heating oil and jet fuel and also manufactures Group I base oils or lubricants. In addition to its finished clean products slate, Paulsboro produces asphalt and petroleum coke. In addition, separate from the Company's agreement with Statoil the Company ha! s a long-! term contract with Saudi Aramco. The Paulsboro refinery has total storage capacity of approximately 7.5 million barrels. Of the total, approximately 2.1 million barrels are dedicated to crude oil storage with the remaining 5.4 million barrels allocated to finished products, intermediates and other products.

Toledo Refinery

Toledo has a throughput capacity of approximately 170,000 thousand barrels per day and a Nelson Complexity Index of 9.2. Toledo processes a slate of light, sweet crudes from Canada, the Midcontinent, the Bakken region and the United States Gulf Coast. Toledo produces a high percentage of finished products, including gasoline and ULSD, in addition to a range of petrochemicals, including nonene, xylene, tetramer and toluene. The Toledo refinery is located on a 282-acre site near Toledo, Ohio, approximately 60 miles from Detroit. Units at the Toledo refinery include an FCC unit, a hydrocracker, an alkylation unit and a UDEX unit. Crude is delivered to the Toledo refinery through three primary pipelines: Enbridge from the north, Capline from the south and Mid-Valley from the south. Crude is also delivered to a nearby terminal by rail and from local sources by truck to a truck unloading facility within the refinery.

Toledo is connected through pipelines, to a distribution network throughout Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. The finished products are transported on pipelines owned by Sunoco Logistics Partners L.P. and Buckeye Partners.

Advisors' Opinion:
  • [By Ben Levisohn]

    Will the price of oil collapse this year? Investors are worried they will and that could push refiners like�Phillips 66 (PSX) and PBF Energy (PBF) higher.

  • [By Jake L'Ecuyer]

    PBF Energy (NYSE: PBF) tumbled 5.85 percent to $28.16 after the company priced secondary offering of 15 million shares at $28 per share. Gulfport Energy (NASDAQ: GPOR) was down, falling 6 percent to $55.66 after the company reported 2013 exit rate of 27,780 barrels of oil equivalent per day. RBC Capital downgraded Gulfport Energy from Outperform to Sector Perform and cut the price target from $64.00 to $61.00.

  • [By Aimee Duffy]

    Texas and North Dakota have been making the news for the use of horizontal drilling and hydraulic fracturing to produce shale oil, and many think that applying those techniques in other states like California could drive production up even further.

    Foolish takeaway
    That charts above directly impact our energy investments. For example, Valero (NYSE: VLO  ) and Phillips 66 (NYSE: PSX  ) are two refiners that have a strong presence on the Gulf Coast and can clearly benefit from buying less oil from expensive foreign sources, and they will be the first ones to check on if imports start to rise again. More Canadian crude flowing into the Midwest can mean great opportunities for refiners with operations in Toledo, like PBF Energy� (NYSE: PBF  ) , provided Canadian crude stays cheap. Taking a look at the broader scope of the U.S. import story can help us better evaluate our energy investments, and prepare us for whatever energy trends the future holds.

    If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For FREE access to this special report, simply click here now.

Top Promising Companies For 2015: Arca Biopharma Inc.(ABIO)

ARCA biopharma, Inc., a biopharmaceutical company, engages in the development of genetically-targeted therapies for cardiovascular diseases. Its principal product candidate, Gencaro (bucindolol hydrochloride), is an investigational, pharmacologically unique beta-blocker and mild vasodilator being developed for the treatment of chronic heart failure and also for the prevention of atrial fibrillation in patients with heart failure. The company has identified common genetic variations in the cardiovascular system that it believes interact with Gencaro?s pharmacology and may predict patient response. ARCA has collaboration with Laboratory Corporation of America to develop the Gencaro Test, a companion test for the genetic markers that identify these common genetic variations. The company is headquartered in Broomfield, Colorado.

Advisors' Opinion:
  • [By Bryan Murphy]

    Were you listening back on December 20th when yours truly suggested Arca Biopharma Inc. (NASDAQ:ABIO) was a budding bullish play? I hope so. If you stepped in then, you'd now be up 9.3%. No, it's not a lot. Then again, it's been less than two weeks. Regardless of whether or not you got into ABIO then, though, as of today, Arca Biopharma have cleared a hurdle that suggests the best is yet to come.

  • [By Bryan Murphy]

    Congratulations if you were in a GW Pharmaceuticals PLC (NASDAQ:GWPH) position anytime before today's open. Now get out. Not only is the party over for GWPH, there's something better you could do with your money now. It's a not-so-obscure-any-longer biotech called Arca Biopharma Inc. (NASDAQ:ABIO), and though the stock's up pretty nicely since two Fridays ago, ABIO is also just getting started.

  • [By Bryan Murphy]

    If you happened to catch - and respond to - my bullish thoughts on Arca Biopharma Inc. (NASDAQ:ABIO) from December 20th and/or January 2nd, then congratulations. You're now up anywhere between 29% and 42%, depending on which of the two write-ups prompted your entry into an ABIO trade. No matter when you got into Arca Biopharma though, here this now - it's time to lock in your profits and get out. Today's big 25% jump has carried the stock to what I see as its near-term maximum value, and rather than ride out a dip, it would make more sense to step out now.

  • [By Bryan Murphy]

    Three days ago I suggested Arca Biopharma Inc. (NASDAQ:ABIO) was a buy, recommending anyone who was lucky enough to own GW Pharmaceuticals PLC (NASDAQ:GWPH) at the time take their profits on GWPH and place that money in Arca. After several weeks' worth of buildup, and after finally seeing a decided break above the horizontal ceiling at $1.50, ABIO looked like it had rocked its way out of a rut and was headed for sunnier skies and greener pastures.

Friday, June 20, 2014

Starbucks prices are going up

starbucks prices A tall latte will cost between 15 and 20 cents more after Tuesday. NEW YORK (CNNMoney) Your Starbucks latte could cost you more starting Tuesday, when the company raises the price of some of its drinks.

On average a drink will cost between 5 and 20 cents more, depending on what you order and where you're making the purchase.

The price of a tall or venti sized latte will go up by between 15 and 20 cents, for example. But the price of a grande (medium in plain-speak) sized latte won't change at all. The cost of a tall brewed coffee and any sized frappuccino won't change either.

The company estimates that the orders of fewer than 20% of its customers will be affected. The price is only changing in U.S. stores, but it will change more in some markets than others.

Starbucks is also raising the price of its packaged coffee sold in grocery stores by about 8%, beginning July 21. While retailers ultimately set the price, customers can expect to pay about $1 more per 12 oz. bag.

The change will actually bring the price back up to what it cost in April 2013, when the company cut the cost, spokesman Zack Hutson said.

He would not specify why the price hike is going into effect, but said the company considers factors like "competitive dynamics" and its overall cost structure.

Starbucks CEO: $15 min. wage may kill jobs   Starbucks CEO: $15 min. wage may kill jobs

Hutson said the price hike is not a knee-jerk reaction to the recent rise in coffee prices, which have skyrocketed due to a severe drought in Brazil. Starbucks buys its coffee beans ahead of time and already has enough f! or the rest of the fiscal year, and some of the next, he said.

The price hike at Starbucks (SBUX) comes about two months after J.M. Smucker (SJM) raised the price of its coffee products, including those for Folgers and Dunkin' Donuts, by 9%.

Most Advisors Don’t Know Their Own Fees

Advisors are underestimating how much their clients pay them in fees.

A new survey conducted by Peak Advisor Alliance and Cerulli Associates showed that nearly 63% of advisors believe the total amount of fees charged on any given account is less than 1.5% of their investable assets ─ but, in actuality, it’s more than that.

When taking into account all fees, including product and platform fees, administrative fees and the advisor fees, the total is more than 30 basis points higher than what advisors think.

“This stat should alarm every advisor and force them to go back and look at how they are presenting their fee structure to clients,” said Ron Carson, CEO of Carson Wealth Management Group and founder of the Peak Advisor Alliance, in a statement. “As an industry, we must do a better job of simplifying a complex fee structure so clients understand the value they are receiving when they work with a financial advisor.”

According to a 2012 Cerulli Associates survey, 60% of clients do not understand how their financial advisor is charging them.

“It is imperative advisors take the time to have a comprehensive conversation about the fees they are being charged,” Carson said. “What fees are being charged is just as important to understand why the fee is being charged as well. Advisors must be transparent about the fee structure with their clients to help build trust early in the relationship.”

Carson advised transparency when it comes to fee structures.

“If a client doesn’t know or understand the fees they are being charged, they most likely will not ever fully trust their advisor, which can be toxic to the relationship in the long run,” he added.

Paul West, managing director for Peak Advisor Alliance, encouraged advisors to be straightforward instead of playing the guessing game.

“Every fund, every platform has different fees they charge, so why shy away from them?” West asked. “Advisors need to stop short-changing themselves and their clients and embrace the fees so clients better understand what services they are being charged for.”

---

Check out Fee Transparency: Why Advisors Should Tread Carefully by Bob Clark on ThinkAdvisor.

Thursday, June 19, 2014

Thursday’s Analyst Moves: FedEx Corporation, ConAgra Foods Inc, Marathon Oil Corporation, More (FDX, CAG, MRO, More)

Before Thursday’s opening bell, a number of big name dividend stocks were the subject of analyst moves. Below, we highlight the important analyst commentary for investors.

FedEx Upgraded at RBC Capital

FedEx Corporation (FDX) has been upgraded to “Sector Perform” at RBC Capital as the company is expected to continue to execute and buy back shares. The firm has a $155 price target on FDX, suggesting a 4% upside from Wednesday’s closing price of $148.95. FDX has a dividend yield of 0.54%.

Barclays Starts Coverage on RCS Capital

Barclays has initiated coverage on RCS Capital Corp (RCAP) with an “Overweight” rating and a $25 price target. This price target suggests a 21% upside from Wednesday’s closing price of $20.59. RCAP has a dividend yield of 3.50%.

Barclays Lifts PT on CDW

Barclays has raised its price target on CDW Corp (CDW) to $36. This price target suggests a 15% increase from Wednesday’s closing price of $31.32. CDW has a dividend yield of 0.54%

BofA/Merrill Downgrades ConAgra Foods

ConAgra Foods Inc (CAG

Wednesday, June 18, 2014

Why Air Products And Chemicals (APD) Stock Continues To Climb On Wednesday

NEW YORK (TheStreet) -- Shares of Air Products and Chemicals (APD) continue to rise, up 0.21% to $131, in after-hours trading today.

By the end of trading, 8.99 million shares of Air Products exchanged hands as compared to its average daily volume of about 721,000 shares.

The company, which is a worldwide supplier of industrial gases and equipment, specialty and intermediate chemicals, and environmental and energy systems, reached a high of 7.50% to $130.72 before the close, after announcing it has named Rockwood Holding Inc. (ROC) CEO Seifi Ghasemi as its new CEO beginning in July.

Must Read: Warren Buffett's 25 Favorite Stocks  STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more


Ghasemi spent 13 years with Rockwood and is replacing retiring Air Products CEO John McGlade. Separately, TheStreet Ratings team rates AIR PRODUCTS & CHEMICALS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate AIR PRODUCTS & CHEMICALS INC (APD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 11.2%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Net operating cash flow has increased to $478.50 million or 47.50% when compared to the same quarter last year. In addition, AIR PRODUCTS & CHEMICALS INC has also modestly surpassed the industry average cash flow growth rate of 38.34%. AIR PRODUCTS & CHEMICALS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AIR PRODUCTS & CHEMICALS INC increased its bottom line by earning $4.73 versus $4.66 in the prior year. This year, the market expects an improvement in earnings ($5.73 versus $4.73). Compared to its closing price of one year ago, APD's share price has jumped by 26.11%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. You can view the full analysis from the report here: APD Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more

Chicago Bridge & Iron Company N.V. (CBI): Should Investors or the Shorts Be Worried? JEC, KBR & FLM

Mid cap infrastructure construction stock Chicago Bridge & Iron Company N.V. (NYSE: CBI) fell 7.23% after being trashed in an article by an apparent short seller posted on Seeking Alpha, meaning its worth taking a closer look at the stock along with the performance of potential benchmarks like Jacobs Engineering Group Inc (NYSE: JEC), KBR, Inc (NYSE: KBR) and First Trust ISE Global Engineering and Construction Index Fund ETF (NYSEARCA: FLM).

What is the Chicago Bridge & Iron Company N.V.?

Founded in 1889 in Chicago, mid cap Chicago Bridge & Iron Company N.V. calls itself the most complete energy infrastructure focused company in the world and a major provider of government services. In fact, Chicago Bridge & Iron Company N.V. is one of the most complete providers of a wide range of services including design, engineering, construction, fabrication, maintenance and environmental services.

As for potential performance benchmarks or peers, Jacobs Engineering Group Inc is one of the world's largest and most diverse providers of technical professional and construction services with around $12 billion in revenues last year; KBR, Inc is a global engineering, construction and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets; and First Trust ISE Global Engineering and Construction Index Fund ETF tracks the ISE Global Engineering and Construction Index (which includes companies that are involved in the engineering, designing, planning, consulting, project managing and/or constructing of large civil and capital projects) through 61 holdings.

What You Need to Know or Be Warned About Chicago Bridge & Iron Company N.V.

On Tuesday, an article appeared on Seeking Alpha from Prescience Point Research Group entitled: Chicago Bridge & Iron: Acquisition Accounting Shenanigans Dramatically Inflate Profitability - Prescience Point Initiates At Strong Sell. It's a rather lengthy piece filled with pretty charts, lots of numbers to digest and various innuendos while comments to the article are an interesting read as it sounds like the only "fraud" so far exposed by Prescience Point involved a Chinese small cap that, like many others, has since been delisted.

Nevertheless, Prescience Point alleges that after Chicago Bridge & Iron Company N.V. acquired the Shaw Group in 2013, it made retroactive adjustments to its purchase price allocation, enabling it to create a reserve of about $1.56B. The company then allegedly used the fund to significantly inflate its 2013 profits and gross profit margin to "mask" its "increasingly fragile financial condition." Prescience Point believes Chicago Bridge & Iron Company N.V. will be forced to take a goodwill write-down or restate its results, triggering a debt default and possibly leading to a liquidity crisis.

For its part, Chicago Bridge & Iron Company N.V. issued a brief statement pointing out that Prescience Point Research Group is a short seller, adding:

CB&I's second quarter financial results are scheduled to be released in late July 2014. The company is confirming today that it expects to report results within the ranges of its current guidance for the year.

With that said, consider who are Chicago Bridge & Iron Company N.V's major investors according to Yahoo! Finance data:

HolderShares% OutValue*Reported
Berkshire Hathaway, Inc 9,550,755 8.88 832,348,298 Mar 31, 2014
Vanguard Group, Inc. (The) 5,887,124 5.48 513,062,856 Mar 31, 2014
SouthernSun Asset Management, Inc. 3,268,822 3.04 284,877,837 Mar 31, 2014
Balyasny Asset Management, LP 2,950,241 2.74 257,113,503 Mar 31, 2014
Wellington Management Company, LLP 2,869,385 2.67 250,066,902 Mar 31, 2014
BlackRock Institutional Trust Company, N.A. 2,620,288 2.44 228,358,099 Mar 31, 2014
Calamos Advisors LLC 2,341,596 2.18 204,070,091 Mar 31, 2014
Columbia Wanger Asset Management, L.P. 2,155,000 2.00 187,808,250 Mar 31, 2014
Westpac Banking Corporation 2,127,159 1.98 185,381,906 Mar 31, 2014
State Street Corporation 1,769,503 1.65 154,212,186 Mar 31, 2014

 

On the other hand, there has also been a awful lot of insider sales this year:

Insider Transactions Reported

DateInsiderSharesTypeTransactionValue*
Jun 3, 2014 STOCKTON WESTLEY S.Officer 4,627 Direct Automatic Sale at $81.19 per share. 375,666
Jun 3, 2014 STOCKTON WESTLEY S.Officer 4,627 Direct Option Exercise at $8.19 - $47 per share. N/A
Jun 2, 2014 ASHERMAN PHILIP KOfficer 17,757 Direct Option Exercise at $9.28 - $23.65 per share. N/A
Jun 2, 2014 ASHERMAN PHILIP KOfficer 75,000 Direct Automatic Sale at $81.27 - $81.77 per share. 6,114,0002
May 13, 2014 BALLSCHMIEDE RONALD AOfficer 1,035 Direct Disposition (Non Open Market) at $0 per share. N/A
May 12, 2014 UNDERWOOD MICHAEL LDirector 310 Direct Disposition (Non Open Market) at $0 per share. N/A
May 9, 2014 UNDERWOOD MICHAEL LDirector 192 Direct Disposition (Non Open Market) at $78.85 per share. 15,139
May 9, 2014 KISSEL W CRAIGDirector 351 Direct Disposition (Non Open Market) at $78.85 per share. 27,676
May 9, 2014 UNDERWOOD MICHAEL LDirector 786 Direct Automatic Sale at $78.63 per share. 61,803
May 9, 2014 BOLCH JAMES RDirector 491 Direct Disposition (Non Open Market) at $78.85 per share. 38,715
May 9, 2014 WILLIAMS MARSHA CDirector 477 Direct Disposition (Non Open Market) at $78.85 per share. 37,611
May 9, 2014 MCVAY LARRY DDirector 452 Direct Disposition (Non Open Market) at $78.85 per share. 35,640
May 9, 2014 FLURY L RICHARDDirector 468 Direct Disposition (Non Open Market) at $78.85 per share. 36,901
May 1, 2014 MCVAY LARRY DDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 MILLER JAMES HDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 UNDERWOOD MICHAEL LDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 WILLIAMS MARSHA CDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 FRETZ DEBORAH MDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 BOLCH JAMES RDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 KISSEL W CRAIGDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
May 1, 2014 FLURY L RICHARDDirector 2,175 Direct Acquisition (Non Open Market) at $0 per share. N/A
Apr 30, 2014 MILLER JAMES HDirector N/A Direct Statement of Ownership N/A
Apr 10, 2014 BAILEY BETH AOfficer 5,000 Direct Automatic Sale at $85.55 per share. 427,750
Apr 4, 2014 MULLEN PATRICK KOfficer 2,637 Direct Automatic Sale at $89 per share. 234,693
Apr 1, 2014 KISSEL W CRAIGDirector 24 Direct Acquisition (Non Open Market) at $74.14 per share. 1,779
Mar 27, 2014 WILLIAMS MARSHA CDirector 6,500 Direct Automatic Sale at $82.99 per share. 539,435
Mar 26, 2014 CHANDLER RICHARD E JROfficer 20,801 Direct Automatic Sale at $84.60 - $85.52 per share. 1,769,0002
Mar 26, 2014 RAY EDGAR C.Officer 102,068 Direct Automatic Sale at $84.10 - $85.37 per share. 8,649,0002
Mar 26, 2014 RAY EDGAR C.Officer 41,607 Direct Option Exercise at $8.19 - $47 per share. N/A
Mar 26, 2014 FLURY L RICHARDDirector 12,410 Direct Automatic Sale at $84.95 - $85.5 per share. 1,058,0002
Mar 25, 2014 MCCARTHY DANIEL M.Officer 26,029 Direct Automatic Sale at $85.92 per share. 2,236,411
Mar 18, 2014 STOCKTON WESTLEY S.Officer 2,054 Direct Automatic Sale at $85 per share. 174,590
Mar 18, 2014 MULLEN PATRICK KOfficer 5,000 Direct Automatic Sale at $86 per share. 430,000
Mar 11, 2014 STOCKTON WESTLEY S.Officer 2,095 Direct Automatic Sale at $83.62 per share. 175,183
Mar 7, 2014 SCORSONE LUKE V.Officer 17,472 Direct Option Exercise at $8.19 - $47 per share. N/A
Mar 7, 2014 SCORSONE LUKE V.Officer 34,977 Direct Automatic Sale at $84.40 - $85.28 per share. 2,967,0002
Mar 6, 2014 MULLEN PATRICK KOfficer 365 Direct Disposition (Non Open Market) at $0 per share. N/A
Mar 3, 2014 ASHERMAN PHILIP KOfficer 75,000 Direct Automatic Sale at $82.70 - $83.16 per share. 6,220,0002
Mar 1, 2014 CHANDLER RICHARD E JROfficer 1,817 Direct Disposition (Non Open Market) at $84.19 per share. 152,973
Feb 24, 2014 BALLSCHMIEDE RONALD AOfficer 18,471 Direct Automatic Sale at $80.34 - $81.05 per share. 1,491,0002
Feb 21, 2014 SCORSONE LUKE V.Officer 997 Direct Disposition (Non Open Market) at $79.17 per share. 78,932
Feb 21, 2014 RAY EDGAR C.Officer 985 Direct Disposition (Non Open Market) at $79.17 per share. 77,982
Feb 21, 2014 CHANDLER RICHARD E JROfficer 1,057 Direct Disposition (Non Open Market) at $79.17 per share. 83,682
Feb 21, 2014 BALLSCHMIEDE RONALD AOfficer 1,468 Direct Disposition (Non Open Market) at $79.17 per share. 116,221
Feb 21, 2014 BAILEY BETH AOfficer 1,016 Direct Disposition (Non Open Market) at $79.17 per share. 80,436
Feb 21, 2014 ASHERMAN PHILIP KOfficer 4,650 Direct Disposition (Non Open Market) at $79.17 per share. 368,140
Feb 21, 2014 MCCARTHY DANIEL M.Officer 1,139 Direct Disposition (Non Open Market) at $79.17 per share. 90,174
Feb 21, 2014 STOCKTON WESTLEY S.Officer 438 Direct Disposition (Non Open Market) at $79.17 per share. 34,676
Feb 21, 2014 MULLEN PATRICK KOfficer 862 Direct Disposition (Non Open Market) at $79.17 per share. 68,244
Feb 20, 2014 SABIN JAMES W.Officer 1,190 Direct Statement of Ownership N/A
Feb 20, 2014 STOCKTON WESTLEY S.Officer 2,940 Direct Automatic Sale at $79.86 - $80.06 per share. 235,0002
Feb 20, 2014 RAY EDGAR C.Officer 8,960 Direct Disposition (Non Open Market) at $79.86 per share. 715,545
Feb 20, 2014 STOCKTON WESTLEY S.Officer 1,768 Direct Disposition (Non Open Market) at $79.86 per share. 141,192
Feb 20, 2014 STOCKTON WESTLEY S.Officer 9,426 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 MCCARTHY DANIEL M.Officer 12,134 Direct Disposition (Non Open Market) at $79.86 per share. 969,021
Feb 20, 2014 RAY EDGAR C.Officer 27,985 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 MCCARTHY DANIEL M.Officer 38,153 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 CHANDLER RICHARD E JROfficer 8,547 Direct Disposition (Non Open Market) at $79.86 per share. 682,563
Feb 20, 2014 SCORSONE LUKE V.Officer 8,748 Direct Disposition (Non Open Market) at $79.86 per share. 698,615
Feb 20, 2014 SCORSONE LUKE V.Officer 28,163 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 ASHERMAN PHILIP KOfficer 232,375 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 ASHERMAN PHILIP KOfficer 72,064 Direct Disposition (Non Open Market) at $79.86 per share. 5,755,031
Feb 20, 2014 BALLSCHMIEDE RONALD AOfficer 15,457 Direct Disposition (Non Open Market) at $79.86 per share. 1,234,396
Feb 20, 2014 BALLSCHMIEDE RONALD AOfficer 47,905 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 BAILEY BETH AOfficer 9,289 Direct Disposition (Non Open Market) at $79.86 per share. 741,819
Feb 20, 2014 SABIN JAMES W.Officer 5,266 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 MULLEN PATRICK KOfficer 21,364 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 BAILEY BETH AOfficer 28,478 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 20, 2014 CHANDLER RICHARD E JROfficer 30,980 Direct Acquisition (Non Open Market) at $0 per share. N/A
Feb 19, 2014 STOCKTON WESTLEY S.Officer 321 Direct Disposition (Non Open Market) at $79.96 per share. 25,667
Feb 19, 2014 BALLSCHMIEDE RONALD AOfficer 1,648 Direct Disposition (Non Open Market) at $79.96 per share. 131,774
Feb 19, 2014 SCORSONE LUKE V.Officer 964 Direct Disposition (Non Open Market) at $79.96 per share. 77,081
Feb 19, 2014 RAY EDGAR C.Officer 868 Direct Disposition (Non Open Market) at $79.96 per share. 69,405
Feb 19, 2014 MULLEN PATRICK KOfficer 407 Direct Disposition (Non Open Market) at $79.96 per share. 32,543
Feb 19, 2014 BAILEY BETH AOfficer 914 Direct Disposition (Non Open Market) at $79.96 per share. 73,083
Feb 19, 2014 ASHERMAN PHILIP KOfficer 7,984 Direct Disposition (Non Open Market) at $79.96 per share. 638,400
Feb 19, 2014 MCCARTHY DANIEL M.Officer 890 Direct Disposition (Non Open Market) at $79.96 per share. 71,164
Feb 17, 2014 RAY EDGAR C.Officer 648 Direct Disposition (Non Open Market) at $79.42 per share. 51,464
Feb 17, 2014 BALLSCHMIEDE RONALD AOfficer 1,043 Direct Disposition (Non Open Market) at $79.42 per share. 82,835
Feb 17, 2014 ASHERMAN PHILIP KOfficer 4,302 Direct Disposition (Non Open Market) at $79.42 per share. 341,664
Feb 17, 2014 BAILEY BETH AOfficer 647 Direct Disposition (Non Open Market) at $79.42 per share. 51,384
Feb 17, 2014 STOCKTON WESTLEY S.Officer 205 Direct Disposition (Non Open Market) at $79.42 per share. 16,281
Feb 17, 2014 MULLEN PATRICK KOfficer 244 Direct Disposition (Non Open Market) at $79.42 per share. 19,378
Feb 17, 2014 SCORSONE LUKE V.Officer 706 Direct Disposition (Non Open Market) at $79.42 per share. 56,070
Feb 17, 2014 MCCARTHY DANIEL M.Officer 672 Direct Disposition (Non Open Market) at $79.42 per share. 53,370
Feb 16, 2014 RAY EDGAR C.Officer 529 Direct Disposition (Non Open Market) at $79.42 per share. 42,013
Feb 16, 2014 BALLSCHMIEDE RONALD AOfficer 809 Direct Disposition (Non Open Market) at $79.42 per share. 64,250
Feb 16, 2014 SCORSONE LUKE V.Officer 670 Direct Disposition (Non Open Market) at $79.42 per share. 53,211
Feb 16, 2014 MULLEN PATRICK KOfficer 211 Direct Disposition (Non Open Market) at $79.42 per share. 16,757
Feb 16, 2014 STOCKTON WESTLEY S.Officer 194 Direct Disposition (Non Open Market) at $79.42 per share. 15,407
Feb 16, 2014 MCCARTHY DANIEL M.Officer 830 Direct Disposition (Non Open Market) at $79.42 per share. 65,918
Feb 16, 2014 ASHERMAN PHILIP KOfficer 2,257 Direct Disposition (Non Open Market) at $79.42 per share. 179,250
Feb 16, 2014 BAILEY BETH AOfficer 589 Direct Disposition (Non Open Market) at $79.42 per share. 46,778
Feb 10, 2014 RAY EDGAR C.Officer 472 Direct Option Exercise at $14.12 per share. 6,664
Jan 2, 2014 BALLSCHMIEDE RONALD AOfficer 1,999 Direct Automatic Sale at $82.21 - $82.22 per share. 164,0002
Jan 2, 2014 KISSEL W CRAIGDirector 25 Direct Acquisition (Non Open Market) at $69.33 per share. 1,733

 

Share Performance: Chicago Bridge & Iron Company N.V. vs. JEC, KBR & FLM

On Tuesday, mid cap Chicago Bridge & Iron Company N.V. fell 7.23% to $68.26 (CBI has a 52 week trading range of $56.04 to $89.22 a share) for a market cap of $7.38 billion plus the stock is down 16.5% since the start of the year, up 15.7% over the past year and up 402.6% over the past five years. Here is a look at the long term performance of Chicago Bridge & Iron Company N.V. verses Jacobs Engineering Group Inc , KBR, Inc and First Trust ISE Global Engineering and Construction Index Fund ETF:

As you can see from the above chart, Chicago Bridge & Iron Company N.V. has been a clear outperformer.

Finally, here are the latest technical charts for Chicago Bridge & Iron Company N.V., Jacobs Engineering Group Inc, KBR, Inc and First Trust ISE Global Engineering and Construction Index Fund ETF:

The Bottom Line. Chicago Bridge & Iron Company N.V. will be interesting to watch for the rest of this week and into next week to see if the accusations actually stick. If not, chalk this up as another failed attempt by the shorts to profit from trashing a stock.