After nearly a week of press previews, the Los Angeles Auto Show opened to the public on Friday and will run through next weekend. The number of new cars, concept cars, announcements, and awards over the past few days should be enough to keep any car buff happy until the next round of shows that start after the holidays.
Here�� our take on some of the show�� highlights.
General Motors Co. (NYSE: GM) introduced a new mid-size pickup, the Chevy Colorado, which may make some buyers happy, but seems strange somehow because both Dodge and Ford have stopped making their Dodge Dakota and Ford Ranger mid-size models. Toyota has some success with its Tacoma and Nissan is working on a redesign of its Frontier. Honda sold an anemic 1,239 units of its Ridgeline pickup in October. And as a category, mid-size pickups have sold around 205,000 units so far in 2013, just ahead of luxury SUV sales but well ahead of the luxury sports car categories according Kelley Blue Book.
Top 10 Industrial Disributor Companies To Own For 2015: AEterna Zentaris Inc.(AEZS)
Aeterna Zentaris Inc. operates as a late-stage drug development company specialized in oncology and endocrine therapy. Its lead oncology compounds include perifosine, a PI3K/Akt pathway inhibitor that is in Phase 3 registration trial for refractory advanced colorectal cancer and multiple myeloma; and AEZS-108, a doxorubicin-targeted conjugate in Phase II for the treatment of ovarian, endometrial, castration refractory prostate, and refractory bladder cancer. The company?s lead endocrinology compound, AEZS-130, is an oral ghrelin antagonist in Phase III trial as a diagnostic test for adult growth hormone deficiency. Its pipeline also includes earlier-stage compounds, such as AEZS-112 that is in a Phase I trial in advanced solid tumors and lymphoma, as well as AEZS-120, an anti-cancer vaccine in pre-clinical development. The company was founded in 1991 and is headquartered in Quebec City, Canada.
Advisors' Opinion:- [By Sean Williams]
What's coming down the pipeline
Avastin: Surprise: It's Roche's (NASDAQOTH: RHHBY ) wonder drug yet again! Roche's Avastin is in the process of being tested as a treatment for recurrent endometrial cancer and demonstrated promising results in a mid-stage trial according to the Journal of Clinical Oncology. Avastin, which is an angiogenesis inhibitor (a fancy way of saying it inhibits blood vessel growth), was tested on 52 evaluable patients and delivered a progression-free survival of at least six months for 21 of them. Overall median PFS was 4.2 months, and median overall survival came in at 10.5 months. Don't be surprised if Roche decides to pursue further studies of Avastin in recurrent endometrial cancer with these results.� AEZS-108: Currently in late-stage development by Aeterna Zentaris (NASDAQ: AEZS ) , a holding in my own portfolio, AEZS-108 is an intravenous treatment composed of a synthetic peptide carrier and doxorubicin that targets Luteinizing Hormone Releasing Hormone-receptor expressing tumors. That series of scientific jargon simply means it targets cancer cells with minimal healthy cell death relative to the current standards of treatment. In mid-stage trials, AEZS-108 delivered an overall response rate of 30.8% and a clinical benefit rate of 74.4%. These figures were enough to get AEZS-108 a special protocol assessment (SPA), which should streamline its approval if these results stay consistent in late-stage studies.
As we saw with the current treatment options, the endometrial cancer pipeline isn't filled with a lot of choices, but they are at least more encouraging than the standard care treatments we've seen over the past three decades.Your best investment
With very few investable options to choose from, since many of these treatments are off patent as they're decades old, I'm going to split my decision this week between Roche and Aeterna Zentaris for obvious reasons. - [By Eric Volkman]
Aeterna Zentaris (NASDAQ: AEZS ) has made a significant change in its executive suite and boardroom. David Dodd is now the company's chief executive and a member of its board of directors. He succeeds Juergen Engel. The firm did not provide the reasons for the succession.
- [By Sean Williams]
High-risk, high-reward suggestions
Exelixis (NASDAQ: EXEL ) : In November Exelixis had its first drug, known as Cometriq, approved by the Food and Drug Administration to treat metastatic medullary thyroid cancer. Although the market for this disease is pretty small -- somewhere between 500 and 700 people in the U.S. -- the near-tripling in progression-free survival, or PFS, in trials would indicate to me a strong likelihood that it could translate to success in other cancer types. In mid-stage prostate cancer trials, for instance, Cometriq was found to be particularly effective in dealing with bone metastases as a second or third-line treatment. We won't get any additional data until next year on Cometriq, but positive data on the prostate cancer front could be enough to double its share price if the PFS, compared to the placebo, is notably strong. ImmunoGen (NASDAQ: IMGN ) : In February, Roche�and ImmunoGen received approval for Kadcyla as a secondary treatment for HER2-positive breast cancer. This is ImmunoGen's first drug approval, and it gives the company a chance to showcase what I feel is one of the future pathways of fighting cancer -- its targeted-antibody payload, or TAP, technology. ImmunoGen's TAP technology works by attaching a toxin -- in this case Roche's Herceptin -- to an antibody, and teaching that antibody to release the to
There's an undeniably large dollar amount being pledged to cancer research, but, even if a drug gains approval, that's no guarantee that the biotech or pharmaceutical company behind that drug will be a success. Some of the biggest gains (and losses) come from taking a leap of faith based on clinical data, or the approval of one or two drugs or devices within a pipeline. After that, it's all up to the drug or devices' effectiveness, its pricing, and the success of the marketing teams promoting the drug or device. Here are a few high-risk, high-reward names you should be keeping your eye on.
Top 10 Industrial Disributor Companies To Own For 2015: Pilgrim's Pride Corporation(PPC)
Pilgrim's Corp. produces, processes, markets, and distributes fresh and frozen chicken products to retailers, distributors, and foodservice operators primarily in the United States. Its fresh chicken products consist of refrigerated (non-frozen) whole or cut-up chicken; and pre-marinated or non-marinated, as well as prepackaged case-ready chicken, which includes various combinations of freshly refrigerated, whole chickens, and chicken parts. The company also offers a range of prepared chicken products, including portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. In addition, it exports whole chickens and chicken parts to approximately 95 countries, including Mexico, Russia, Puerto Rico, and China. The company was formerly known as Pilgrim's Pride Corporation. Pilgrim's Corp. was founded in 1945 and is headquartered in Greeley, Colorado. Pilgrim's Corp. operates as a subsidiary of JBS USA Holdings, Inc.
Advisors' Opinion:- [By Ben Levisohn]
Tyson Foods climbed 4.6% to $41.54 after Pilgrim’s Pride (PPC) made a $45 a share bid for Hillshire Brands, giving food stocks a boost. (My colleague Vito Racanelli also had a bullish take on Tyson Foods in this weekend’s Barron’s.)� Hillshire Brands surged 22% to $45.19. Hillshire said it would “thoroughly review” the proposal.
- [By Arturo Cuevas]
It looks like you and I will be eating more chicken this 2014. Retail beef prices remain at record highs, and we consumers will likely be driven more toward comparatively cheaper chicken meat in 2014. Given this trend, loading up on shares of Sanderson Farms (NASDAQ: SAFM ) , Pilgrim's Pride (NASDAQ: PPC ) , and�Tyson Foods (NYSE: TSN ) �should be worth considering.
- [By Ben Levisohn]
Tyson’s bid came just a couple of days after Hillshire Brands received a bid from Pilgrim’s Pride (PPC), and while it seems like ancient history now, Hillshire made its own bid for Pinnacle Foods (PF) earlier this month. Pilgrim’s Pride dropped 1.1% to $25.09 today, while poor jilted Pinnacle Foods gained 1% to $31.68.
- [By WWW.DAILYFINANCE.COM]
Toby Talbot/AP NEW YORK -- Hillshire Brands is at the center of a barnyard brawl. Tyson Foods, the largest U.S. meat processor, has made a $6.2 billion offer for the maker Jimmy Dean sausages and Ball Park hot dogs, topping a bid made two days earlier by rival poultry producer Pilgrim's Pride. Based in Greeley, Colorado, Pilgrim's Pride is owned by Brazilian meat giant JBS. The takeover bids for Hillshire Brands (HSH) by the two major meat processors are being driven by the desirability of brand-name processed products like Jimmy Dean breakfast sandwiches. The convenience foods are more profitable than fresh meat, such as chicken breasts, where there isn't as much wiggle room to pad prices. Selling more types of products also would give the companies a buffer from volatile price swings of fresh meat. When beef prices rise and shoppers turn to other meats, the companies can sell more chicken or bacon, for example. While both Tyson (TSN) and Pilgrim's (PPC) sell some prepared products like frozen fried chicken pieces, their main business has been as suppliers of fresh meat for supermarkets and restaurant chains. Both offers are contingent on Hillshire abandoning its plan to acquire Pinnacle Foods (PF), which makes Birds Eye frozen vegetables and Wish-Bone salad dressings. Hillshire had been trying to diversify its own portfolio by moving into other areas of the supermarket with the $4.23 billion acquisition. But some investors questioned whether combining with Pinnacle made sense, given the sharp differences in product categories and the outdated image of some Pinnacle brands, such as Hungry Man frozen dinners. Hillshire said earlier it strongly believes in its deal with Pinnacle Foods but would review Pilgrim's offer. In its latest statement Thursday, the Chicago-based company said it would review Tyson's offer as well and made no mention of its Pinnacle deal. Pilgrim's Pride said it is considering its options and will "update the markets in due cou
Hot Internet Stocks To Invest In 2015: WidePoint Corp (WYY)
WidePoint Corporation (WidePoint), incorporated on May 30, 1997, is a provider of customized technology-based products and solutions to both the government sector and commercial markets. The Company operates in three segments: Communications Management, Cybersecurity Solutions, and Consulting Services and Products. WidePoint, through its wholly owned subsidiaries iSYS LLC (iSYS) and WidePoint Solutions Corp. (WSC), utilizes its experience working with government and commercial enterprises to develop solutions that take the pain out of managing wireless and wireline telecommunications (telecom) expenses and devices. Through its wholly owned subsidiaries Operational Research Consultants (ORC), Protexx Technology Corporation (PROTEXX), and Advanced Response Concepts Corporation (ARCC), delivers compliant identity management solutions. The Company offers a range of information technology (IT) consulting services and products to support its clients��IT needs.
Communications Management
The Company offers a Bands of Minutes approach that takes advantage of bulk savings for its clients by utilizing all available voice, data and message plans offered by the carriers. It provides a variety of reports that provide data for ongoing periodic reviews and strategic decision-making. It also provides secured solutions for its clients��telecom assets.
Cybersecurity Solutions
WidePoint�� wholly owned subsidiary, ORC, is certified by the federal government to facilitate public access to the services offered by government agencies, including on-line access to computers for purposes of reviewing, retrieving, providing, and exchanging information. Its digital certificate credentials are authorized to provide trusted individual or business identity information for use by the Department of Defense (DoD), FirstGov, General Services Administration (GSA) and participating federal government agencies. Its digital certificate credential services include the DoD External Cer! tificate Authority, Access Certificates for Electronic Services, and the General Services Administration Shared Service Provider. It also provide an analysis of an organization�� business and technical policies across application and data resources for the implementation of various devices, such as smart cards, security tokens, cell phones and personal computers, and implementing these capabilities by incorporating higher levels of automated infrastructure.
Consulting Services and Products
The Company offers IT architecture and planning services to ensure that it clients get the most from their IT investments. Its system integration services team provides its clients with the creative and technical expertise needed to execute projects of any size. The Company specializes in the areas of Infrastructure management, Applications management and IT strategic planning. iSYS provides a range of IA support services to help its customers to protect and defend information and information systems by ensuring confidentiality, integrity, authentication, availability, and non-repudiation. In addition, its IA services include strategic risk analysis and management support that includes physical security, reliability, continuity of operations planning, and support for other enterprise governance issues, such as privacy, compliance, audits and disaster recovery. Its IA services include Certification and Accreditation; Security Architecture Design; System Security Planning; Security Risk Assessment and Mitigation Planning; Vulnerability Testing and Remediation; Customizable IA plans and processes to correspond to customer needs, and Continuity of Operations Planning. Its support services address on-going enhancements to existing IT systems along with developing new IT systems that incorporate the evolution of long-term advanced hardware and software technologies.
The Company competes with Avalon Global Solutions, Inc., Profitline, Rivermine, Lockheed Martin Corporation, Northrop G! rumman Co! rporation, EDS, Unisys, Computer Services Corporation, Science Applications International Corporation and Manpower.
Advisors' Opinion:- [By Bryan Murphy]
If you're a fan of, or investor in, WidePoint Corporation (NYSEMKT:WYY), then be warned now that what you're about to read regarding WYY is likely to irritate you. Nothing personal; it's just a reality check. Here goes - WidePoint shares are very likely to be at the onset of a sizeable pullback. [Insert boos and hisses here.]
- [By Bryan Murphy]
If you're reading this, then odds are you already know that small caps WidePoint Corporation (NYSEMKT:WYY), CytRx Corporation (NASDAQ:CYTR), and Elephant Talk Communications Corp. (NYSEMKT:ETAK) are among the recent big winners from the small cap stock realm. ETAK is up 100% since the end of October, largely spurred by encouraging numbers in its third-quarter results. CYTR shares have rallied more than 150% in just the past three days on the heels of an announcement that a cancer drug the biotech company is developing has shown wonderful Phase 2 results. And, WYY has advanced 93% over the past month or so, thanks to Q3's earnings announcement, though the trading public - and then the media - certainly took the ball and ran with it.
Top 10 Industrial Disributor Companies To Own For 2015: Sigma Designs Inc.(SIGM)
Sigma Designs, Inc. provides integrated system-on-chip solutions (SoC) for the Internet protocol television (IPTV), media processor, connected home and media player, prosumer and industrial audio/video, high definition television, and PC-based add-in markets. The company offers semiconductors with a suite of real-time software that enables synchronous processing of video, audio, and graphics streams for various applications. Its media processor product line represents a family of SoC solutions that are a component of multiple consumer applications, which process digital video and audio content comprising IPTV, connected media players, and portable media players. The company?s home networking product line consists of wired networking solutions based on HomePNA, HomePlug AV, and G.hn standards, as well as wireless connectivity solutions based on Ultra-wideband technology. Its standards are used for transferring Internet protocol content across coaxial cables, phone lines, a nd power lines to enable service providers to deliver IPTV solutions and other media-rich applications. The company?s video image processor product line comprises of semiconductors that provide video output for professional and prosumer applications. Its home control and energy management automation product line includes wireless transceiver devices along with a mesh networking protocol. The company offers its home connectivity products under the CopperGate; wireless connectivity solutions under the CoAir; video image processors under the VXP; and wireless transceiver devices under the Z-Wave brands. It also provides software elements, such as multimedia library, security management software, and porting adaptations. In addition, the company offers PC-based solutions. It sells its products through direct sales force, manufacturer representatives, and independent distributors primarily in Asia, Europe, and North America. The company was founded in 1982 and is headquartered i n Milpitas, California.
Advisors' Opinion:- [By Rebecca McClay]
In earnings news today, a few companies are reporting after the closing bell, including H & R Block Inc. (NYSE: HRB), which is up about 1%. Pike Electric Corp. (NYES: PIKE), Guidewire Software Inc. (NYSE: GWRE), and Sigma Designs Inc. (Nasdaq: SIGM) are also reporting quarterly earnings late this afternoon.
Top 10 Industrial Disributor Companies To Own For 2015: Zoom Technologies Inc (ZOOM)
Zoom Technologies, Inc. (Zoom), incorporated on February 29, 2002, is engaged in design, production, marketing, sales, and support of broadband and dial-up modems, voice over Internet Protocol or (VoIP) products and services, Bluetooth wireless products, and other communication-related products. The Company through its wholly owned holding-company subsidiary, Gold Lion Holding Limited (Gold Lion) is the owner of 100% of Profit Harvest Corporation Ltd. (Profit Harvest) and through Gold Lion's wholly owned subsidiary, Jiangsu Leimone Electronics Co., Ltd. (Jiangsu Leimone) is the owner of 80% of Tianjin Tong Guang Group Digital Communication Co., Ltd. (TCB Digital). The Company through its subsidiaries is engaged in manufacturing, research and development, and sales of electronic and telecommunication products for the latest generation mobile phones, wireless communication circuitry, and related software products. On January 4, 2011, the Company acquired 100% ownership of Celestial Digital Entertainment, Ltd., (CDE). During the year ended December 31, 2011, the Company acquired 55% of Portables.
TCB Digital is engaged in electronic and telecommunication product design, development, and manufacturing for original equipment manufacturers (OEM) customers and for its own products under the brand name of Leimone. The Company offers electronic manufacturing service (EMS) to both domestic and global customers including Samsung, Beijing Tianyu Langtong, CECT, Danahar and Spreadtrum. Its primary products include mobile phones, wireless telecommunication modules, digital cameras, cable television (TV) set-top boxes and global positioning system ( GPS) equipment.
The Company has developed mobile phones and Smartphones based on both of the main network technologies: Global System for Mobile Communications (GSM), and Code Division Multiple Access (CDMA), and beginning in 2010 also 3G CDMA2000 capable products. As of December 31, 2011, the Company markets its mobile phone products through di! stributors in China and also supplies GSM, CDMA and 3G CDMA2000 mobile phones to customers, including one of China's main mobile operators, China Telecom. The Company through its Portables subsidiary operates a wholesale distributor business for T-Mobile products and services in the United States. The Company also has the right to sell branded mobile handsets including those carrying the Zoom brand name and related peripherals in the retail stores managed by Portables under the agreement with T-Mobile.
The Company competes with Bird Ningbo Co., Ltd, Haier Telecom Co. Ltd., Konka Group Co., Ltd, Lenovo Group Limited, TCL Communication Technology Holdings Limited, LG Electronics Ltd., Motorola Inc., Nokia Corporation, Samsung Electronics Co., Ltd., and Sony Ericsson Mobile Communications (China) Co., Ltd.
Advisors' Opinion:- [By Lauren Pollock]
Shares of Zoom Technologies Inc.(ZOOM) soared� 37% to $5.90 after the Chinese mobile and telecommunications investor inked an all-stock deal to acquire an online business travel provider.
Top 10 Industrial Disributor Companies To Own For 2015: Cleveland BioLabs Inc.(CBLI)
Cleveland BioLabs, Inc., a biotechnology company, engages in the discovery, development, and commercialization of products for cancer treatment, and protection of normal tissues from radiation and other acute stresses. Its products include Protectan CBLB502, a radioprotectant molecule with multiple medical and defense applications for reducing injury from acute stresses, such as radiation and chemotherapy by mobilizing various natural cell protecting mechanisms, including inhibition of apoptosis, reduction of oxidative damage, and induction of factors that induce protection and regeneration of stem cells in bone marrow and the intestines; Protectan CBLB612, a modified lipopeptide mycoplasma that acts as a stimulator and mobilizer of hematopoietic stem cells to peripheral blood, providing hematopoietic recovery during chemotherapy and during donor preparation for bone marrow transplantation; and Curaxins, which are small molecules intended to destroy tumor cells by simultan eously targeting two regulators of apoptosis. The company has a strategic research partnership with Roswell Park Cancer Institute to develop its anticancer and radioprotectant drug candidates; a strategic partnership with ChemBridge Corporation to access a chemical library of 214,000 compounds; and a strategic alliance with The Cleveland Clinic Foundation (CCF). It also has a cooperative research and development agreement with the Uniformed Services University of the Health Sciences; the Henry M. Jackson Foundation for the Advancement of Military Medicine, Inc.; and CCF to evaluate its radioprotective drug candidates and their effects on intracellular and extracellular signaling pathways. The company was founded in 2003 and is headquartered in Buffalo, New York.
Advisors' Opinion:- [By Lisa Levin]
Cleveland BioLabs (NASDAQ: CBLI) plummeted 32.65% to $0.7610 as the company reported that BARDA has terminated negotiations related to its proposal for further development of Entolimod.
- [By Lisa Levin]
Cleveland BioLabs (NASDAQ: CBLI) shares tumbled 34.67% to touch a new 52-week low of $0.74 as the company reported that BARDA has terminated negotiations related to its proposal for further development of Entolimod.
Top 10 Industrial Disributor Companies To Own For 2015: World Acceptance Corp (WRLD)
World Acceptance Corporation operates a small-loan consumer finance business in 12 states and Mexico. The Company is engaged in the small-loan consumer finance business, offering short-term small loans, medium-term larger loans, related credit insurance and ancillary products and services to individuals. As of March 31, 2012, the Company offered standardized installment loans through 1,137 offices in South Carolina, Georgia, Texas, Oklahoma, Louisiana, Tennessee, Illinois, Missouri, New Mexico, Kentucky, Alabama, Wisconsin, and Mexico. The Company serves individuals with limited access to consumer credit from banks, credit unions, other consumer finance businesses and credit card lenders. In the United States offices, the Company also offers income tax return preparation services to its customers and others.
During the fiscal year ended March 31, 2012 (fiscal 2012), the Company opened 69 new offices. In each state in which it operates and in Mexico, the Company offers consumer installment loans, which are standardized by amount and maturity. The Company's loans are consumer installment loans, which are payable in fully amortizing monthly installments with terms generally of 4 to 36 months, and all loans are pre-payable at any time without penalty. During fiscal 2012, the Company's average originated gross loan term was approximately 12 months. As of March 31, 2012, the annual percentage rates on loans offered by the Company, which include interest, fees and other charges as calculated for the purposes of the requirements of the federal Truth in Lending Act, ranged from 24% to 204% depending on the loan size, maturity and the state, in which the loan is made. In addition, in certain states, the Company, as agent for an unaffiliated insurance company, sells credit insurance in connection with its loan transactions.
Specific allowable charges vary by state and, consistent with industry practice, the Company generally charges at or close to the maximum rates allowable under app! licable state law in those states that limit loan rates. Statutes in Texas and Oklahoma allow for indexing the maximum loan amounts to the Consumer Price Index. The Company�� loan products are pre-computed loans in which the finance charge is a combination of origination or acquisition fees, account maintenance fees, monthly account handling fee and other charges permitted by the relevant state laws.
The Company, as an agent for an unaffiliated insurance company, markets and sells credit life, credit accident and health, credit property, and unemployment insurance in connection with its loans in selected states where the sale of such insurance is permitted by law. Credit life insurance provides for the payment in full of the borrower's credit obligation to the lender in the event of death. Credit accident and health insurance provides for repayment of loan installments to the lender, which come due during the insured's period of income interruption resulting from disability from illness or injury. Credit property insurance insures payment of the borrower's credit obligation to the lender in the event, which the personal property pledged as security by the borrower is damaged or destroyed by a covered event. Unemployment insurance provides for repayment of loan installments to the lender, which come due during the insured�� period of involuntary unemployment. The Company requires each customer to obtain specific credit insurance in the amount of the loan for all loans originated in Georgia under the Georgia Industrial Loan Act, and encourages customers to obtain credit insurance for all loans originated in South Carolina, Louisiana, Alabama and Kentucky and on a limited basis in Tennessee, Oklahoma, and Texas. Customers in those states obtain such credit insurance through the Company.
In South Carolina, Georgia, Louisiana, Kentucky and Alabama, the Company charges its borrowers for its non-file premiums in connection with certain loans in lieu of recording and perfecting the! Company� �s security interest in the loan collateral. The premiums are remitted to a third party insurance company for non-file insurance coverage. The Company also markets automobile club memberships to its borrowers in Georgia, Tennessee, New Mexico, Louisiana, Alabama, Texas, and Kentucky as an agent for an unaffiliated automobile club. Club memberships entitle members to automobile breakdown and towing reimbursement and related services. The Company is paid a commission on each membership sold.
The Company offers income tax return preparation and electronic filing. This program is provided in all but a few of the Company�� the United States offices. During fiscal 2012, the Company prepared 44,000 returns. During fiscal 2012, 93.4% of the Company�� revenues were attributable to the United States customers and 6.6% were attributable to customers in Mexico. During fiscal 2012, approximately 84.7% of the Company's loans were generated through refinancings of outstanding loans and the origination of new loans to previous customers.
Advisors' Opinion:- [By Canadian Value]
So I�� going to stick my next out and share my views on four battleground stocks that are among my favorite shorts: World Acceptance (WRLD), Green Mountain (GMCR), Herbalife (HLF), and InterOil (IOC). And next week at the Value Investing Congress I will present another short, my largest.
- [By Ben Levisohn]
Shares of World Acceptance Corporation (WRLD) have plunged today after the company disclosed in an 8K that the�Consumer Financial Protection Bureau has requested information about its sales practices.
Getty Images Consumer Financial Protection Bureau Director Richard CordrayShares of World Acceptance Corporation have plunged 19% to $79.19 at 3:43 p.m.–and dragged down anything remotely connected to payday lending. Cash America International (CSH) has dropped 7.8% to $39.35, pawn-shop operator EZCorp (EZPW) has fallen 3.7% to $12.33, and wire-transfer companies Western Union (WU) and MoneyGram International (MGI) have fallen 2.6% and 5.8%, respectively.
Sterne Agee’s Henry Coffey and team explain what’s happening with World Acceptance and why they continue to rate it Neutral:
1. Because of the company’s size (largest or second largest small loan company in the country), it was inevitable that the CFPB would be looking into [World Acceptance]. The question never was “if” in our minds but “when.”
2. The inquiry does not in itself mean there are issues that have been discovered by the CFPB…
4. With approximately 30% of the company’s loans underwritten with some form of credit insurance, it would be difficult for�[World Acceptance] to continue to make these loans without this product…
6. The company indicated in its 8K that it believes it is in compliance with the law.
Shares of World Acceptance Corporation has dropped 9.2% so far this year, while Cash America International has gained 2.7%, EZCorp has risen 5.5%, Western Union has fallen 6.6% and MoneyGram International has declined 15% in 2014.
- [By Geoff Gannon]
1. World Acceptance (WRLD)
2. Express Scripts (ESRX)
3. Walgreen (WAG)
4. Humana (HUM)
5. McDonald's (MCD)Those are the kinds of companies a younger ��and poorer ��Warren Buffett might buy. Actually, a few of those companies are big enough for Warren Buffett to buy today.
- [By Ong Kang Wei]
Besides this, I would also avoid companies which had previously fooled investors by using things such as "creative accounting" or "aggressive accounting" (Remember Enron); had been involved in a scandal which required it to restate past financials or go to court with shareholders (Remember the Diamond Foods (DMND) scam); was unable to produce financial statements on time [One recent case being World Acceptance (WRLD)]; or was being investigated by the SEC. These are all some signs of management being dishonest, and I would rather avoid companies with such a history, unless there is a change in the company's management team.
Top 10 Industrial Disributor Companies To Own For 2015: KBR Inc. (KBR)
KBR, Inc. operates as an engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors worldwide. Its Downstream business unit provides front end engineering design; detailed engineering; engineering, procurement, and construction (EPC); EPC management; and program management services to petrochemical, refining, coal gasification, and syngas markets. The company?s Government and Infrastructure business unit provides program and project management, contingency logistics, operations and maintenance, construction management, engineering, and other services to military and civilian branches of governments and private clients. Its Services business unit delivers engineering, construction, construction management, fabrication, maintenance, and turnaround services. It also offers maintenance, construction, and drilling support services for offshore oil and gas producing facili ties using semisubmersible vessels. This segment serves oil, gas, petrochemicals, and hydrocarbon processing industries, as well as power, alternate energy, pulp and paper, industrial and manufacturing, and pharmaceutical industries. The company?s Technology business unit offers various process technologies, including value-added technologies in the coal monetization, petrochemical, refining, and syngas markets. Its Upstream business unit constructs liquefied natural gas, gas-to-liquids, onshore oil and gas production facilities, offshore oil and gas production facilities, and onshore and offshore pipelines. The company?s Ventures business unit invests in and manages projects, where the company provides engineering, construction, construction management or operations, and maintenance services. KBR, Inc. was founded in 1901 and is based in Houston, Texas.
Advisors' Opinion:- [By Rich Smith]
The larger of the two awards, and by a few orders of magnitude, went to government contractor KBR (NYSE: KBR ) , which won a firm-fixed-price, option-filled contract valued at up to $134.2 million to develop and construct a land-based missile defense system to be built in Deveselu, Romania. According to Time magazine, the missile base will be constructed on 430 acres of property located -- and we quote -- "125 miles southwest of Count Dracula's castle."
- [By Monica Gerson]
KBR (NYSE: KBR) is expected to post its Q3 earnings at $0.70 per share on revenue of $1.99 billion.
Zynga (NASDAQ: ZNGA) is estimated to post a Q3 loss at $0.04 per share on revenue of $142.67 million.
- [By Lisa Levin]
KBR (NYSE: KBR) shares fell 1.16% to touch a new 52-week low of $23.95 after UBS downgraded the stock from Buy to Neutral.
AEP Industries (NASDAQ: AEPI) shares touched a new 52-week low of $34.20. AEP shares have dropped 56.11% over the past 52 weeks, while the S&P 500 index has gained 15.91% in the same period.
- [By John Kell]
Among the companies with shares expected to actively trade in Friday’s session are Deckers Outdoor Corp.(DECK), KBR Inc.(KBR) and Pier 1 Imports Inc.(PIR)
Top 10 Industrial Disributor Companies To Own For 2015: Computer Sciences Corporation(CSC)
Computer Sciences Corporation provides information technology (IT) and professional services to governments and commercial enterprises. The company?s IT outsourcing services comprise operating customer?s technology infrastructure, including systems analysis, applications development, network operations, desktop computing, and data center management services; business process outsourcing; managing transactional business functions for clients, such as procurement and supply chain, call centers and customer relationship management, credit services, claims processing and logistics. It also offers cloud computing and cyber security protection services. In addition, the company provides range of services in the areas of infrastructure as a service, software as a service (SaaS), business process as a service, platform as a service, and other technologies. Further, its IT and professional services consist of systems integration, including designing, developing, implementing, and i ntegrating information systems; and management consulting, technology consulting, and other professional services, consist of advising clients on the strategic acquisition and utilization of IT and on business strategy, security, modeling, simulation, engineering, operations, change management, and business process reengineering. Additionally, the company licenses software systems, including SaaS offerings for the financial services and other industry-specific markets; and provides a range of end-to-end business solutions. It has its operations primarily in North America, Europe, Asia, and Australia. The company was founded in 1959 and is based in Falls Church, Virginia.
Advisors' Opinion:- [By Tom Taulli]
Innovation: Innovation is a major priority at AT&T. And so far, it looks like the company is making savvy moves, particularly with its push into the cloud. To this end, AT&T has rolled out NetBond, which involves alliances with top providers like IBM (IBM), Microsoft (MSFT), CSC (CSC) and Equinix (EQIX). But perhaps the most interesting growth initiative is Digital Life, which allows customers to use their smartphones as remote control devices with homes and cars. All in all, the opportunity could be huge, adding another nice revenue stream — AT&T already has agreements with companies like GM (GM), Ford (F), Nissan, Audi, BMW and Tesla (TSLA)
- [By Rich Smith]
Falls Church, Va.-based Computer Sciences (NYSE: CSC ) announced Wednesday that it is selling its Applied Technology Division to privately held PAE, a leading provider of "global mission services."
- [By Damian Illia]
Results for third-quarter 2013 were above estimations regarding earnings, but below average in revenue. The challenges presented by the European market, plus the inactive IT spending have affected the firm�� revenues. A restructuring plan is on track, with the recent divestment of Changepoint, Professional Services and Uniface business units for $112.0 million in cash to M4 Global Solutions Holding B.V. during Jan 2014. These efforts are directed towards enhancing the core business over the long run, developing an innovative product pipeline at reduced costs to boost profitability. Nevertheless, the company faces intense competition from peers such as International Business Machines Corp. (IBM), BMC Software, Hewlett-Packard Company (HPQ), Accenture plc (ACN), and Computer Sciences Corp. (CSC).
- [By Lee Jackson]
Computer Sciences Corp. (NYSE: CSC) posted huge first-quarter results, with net income up 279% over last year’s numbers. The company has shifted its focus from infrastructure sales to more profitable software and services. It recently purchased big-data rival Infochimps. The stock also remains a top holding in hedge fund manager David Einhorn�� Greenlight Capital. The consensus price objective for the stock is $54. Investors are paid a 1.6% dividend.
Top 10 Industrial Disributor Companies To Own For 2015: Petroleo Brasileiro Petrobras SA (PBR.A)
Petroleo Brasileiro SA Petrobras (Petrobras) is a Brazilian integrated oil and gas company. It operates in five segments: exploration and production; refining, commercialization and transport of oil and natural gas; petrochemicals; distribution of derivatives, electrical energy, biofuels and other renewable energy sources. Directly or through its subsidiaries, Petrobras is engaged in the research, extraction, refining, processing, commercialization and transport of oil from wells, shales and other rocks, its derivatives, natural gas and other liquid hydrocarbons, as well as in activities related to energy, promoting research, development, production, transport, distribution and commercialization of all forms of energy. As of December 31, 2010, it had 132 production platforms, 16 refineries, 291 vessels, 29,398 kilometers of pipelines, six biofuel plants, 16 thermoelectric plants, one pilot wind farm, 8,477 service stations and two fertilizer plants, as well as presence in 30 countries.
Exploration and Production
The domestic oil and gas exploration and production efforts are focused on the three basins offshore in Southeastern Brazil: Campos, Espirito Santo and Santos. The Campos Basin, which covers approximately 115,000 square kilometers (28.4 million acres) is the oil and gas basin in Brazil. At December 31, 2009, the Company was producing from 41 fields at an average rate of 1,693.6 mbbl/d of oil and held proved crude oil reserves representing 90% of the total proved crude oil reserves in Brazil. At December 31, 2009, the Company held proved natural gas reserves in the Campos Basin representing 53% of the total proved natural gas reserves in Brazil. It operated 38 floating production systems, 14 fixed platforms and 5,472 kilometers (3,400.3 miles) of pipeline and flexible pipes in water depths from 80 to 1,886 meters (262 to 6,188 feet). At December 31, 2009, the Company held exploration rights to 21 blocks in the Campos Basin, comprising 5884 square kilometers (1.4 millio! n acres)..
Petrobras have made discoveries of light oil and natural gas in the Espirito Santo Basin, which covers approximately 75000 square kilometers (18.5 million acres) offshore and 14,000 square kilometers (3.5 million acres) onshore. At December 31, 2009, the Company was producing from 46 fields at an average rate of 40.9 thousand barrels per day (mbbl/d) and held proved crude oil reserves, representing 1% of the total proved crude oil reserves in Brazil. On December 31, 2009, the Company held exploration rights to 23 blocks, six onshore and 17 offshore, comprising 8623 square kilometers (2.1 million acres).
The Santos Basin covers approximately 348,900 square kilometers (86 million acres) off the city of Santos, in the State of Sao Paulo. At December 31, 2009, the Company produced oil from two fields and one exploration area at an average rate of 14.4 mbbl/d and held proved crude oil reserves representing 1% of the total proved crude oil reserves in Brazil. It produces hydrocarbons and hold exploration acreage in eight other basins in Brazil.
Refining, Transportation and Marketing
As of December 31, 2009, the Company operated 92% of Brazil�� total refining capacity and supplied almost all of the refined product needs of third-party wholesalers, exporters and petrochemical companies. As of December 31, 2009, the Company owned and operated 11 refineries in Brazil, with a total net distillation capacity of 1,942 mbbl/d. It operates an infrastructure of pipelines and terminals and a shipping fleet to transport oil products and crude oil to domestic and export markets. The refineries are located near the crude oil pipelines, storage, facilities, refined product pipelines and petrochemical facilities, facilitating access to crude oil supplies and other users.The segment also includes petrochemical and fertilizer operations. As at December 31, 2009, the refining capacity in Brazil was 1,942 mbbl/d and the average throughput was 1,791 mbbl/d.
T! he Company owns and operates a network of crude oil and oil products pipelines in Brazil that connect the terminals, refineries and other primary distribution points. On December 31, 2009, the onshore and offshore, crude oil and oil products pipelines extended 13,996 kilometers (8,698 miles). It operates 27 marine storage terminals and 20 other tank farms with nominal aggregate storage capacity of 65 million barrels. The marine terminals handle an average 10,000 tankers annually.
The Company operates a fleet of owned and chartered vessels. It provides shuttle services between the producing basins offshore Brazil and the Brazilian mainland, domestic shipping and international shipping to other parts of South America, the Caribbean Sea and Gulf of Mexico, Europe, West Africa and the Middle East. The fleet includes double-hulled vessels and single-hulled vessels, which operate in South America and Africa only.
Distribution
The distribution segment sells oil products, which are produced by the supply operations. At December 31, 2009, the BR network included 7,221 service stations, or 19.2% of the stations in Brazil. The Company supplies and operates Petrobras Distribuidora S.A., which accounts for 38% of the total Brazilian distribution market. BR distributes oil products, ethanol and biodiesel, and vehicular natural gas to retail, commercial and industrial customers. In 2009, BR sold the equivalent of 767.4 mbbl/d of oil products and other fuels to wholesale and retail customers.
The Company also distributes oil products and biofuels under the BR brand to commercial and industrial customers. The customers include aviation, transportation and industrial companies, as well as utilities and government entities. It also sells oil products produced by the Supply operations to other retailers and to wholesalers.
Gas and Power
The natural gas business includes four activities: transportation (building and operating natural gas pipel! ine netwo! rks in Brazil), acquisition and regasification of LNG, equity participation in distribution companies, which sell natural gas to the users, and commercialization (purchase and resale). In January 2009, the Company completed construction of two LNG terminals, one in Rio de Janeiro with a send-out capacity of 20 mmm3 /d (706 mmcf/d).
International
The Company have operations in 24 countries outside Brazil, which encompasses all phases of the energy business. It is focusing the international upstream activities in the Gulf of Mexico and West Africa. During 2009, the Company conducted exploration and production activities in 21 countries outside Brazil (Angola, Argentina, Bolivia, Colombia, Ecuador, the United States, India, Iran, Libya, Mexico, Mozambique, Namibia, Nigeria, Pakistan, Peru, Portugal, Senegal, Tanzania, Turkey, Uruguay and Venezuela). At December 31, 2009, the total assets of the International Segment represented 7.4% of the Company�� total assets.
Advisors' Opinion:- [By Rudy Martin]
In addition, we recommend buying shares in Brazilian energy giant Petroleo Brasileiro Petrobras S.A. (PBR.A).
Despite a gradual rise in crude oil prices, problems with Brazil's economy, compounded by obstacles in Petrobras's scramble to finance significant on-shore and off-shore hydrocarbon discoveries, have ganged up to erode PBR.A's stock price this year.
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