LONDON -- After offering my�pick of our telecom companies�last week, today I'm turning my attention to the FTSE 100 Pharmaceuticals and Biotechnology sector. This time there are three companies that make the top flight --�GlaxoSmithKline� (LSE: GSK ) (NYSE: GSK ) ,�AstraZeneca� (LSE: AZN ) (NYSE: AZN ) and�Shire� (LSE: SHP ) .
I'll start with a few fundamentals:
Company GlaxoSmithKline AstraZeneca Shire Market cap 76.9 billion pounds 41.5�billion pounds 10.9�billion pounds Share price 1,576 pence 3,308�pence 1,992�pence Share price growth 13% 19% -1.3% Historic EPS growth -1% -12% -14% Forward EPS growth 2% -18% 68% Historic P/E 11.8 7.0 21.6 Forward P/E 13.5 9.6 13.3 Historic Dividend 5.5% 6.3% 0.6% Historic Cover 1.5x 2.3x 7.7x Forward Dividend 5.1% 5.5% 0.6% Forward Cover 1.5x 1.9x 11.8xShare price growth is over the past 12 months, historic figures are for December 2012, forward figures are based on December 2013 forecasts.
Hot Oil Stocks To Buy For 2015: Lockheed Martin Corporation(LMT)
Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.
Advisors' Opinion:- [By WWW.GURUFOCUS.COM]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number T is trading at a discount to only 3.) above. Since T's tangible book value is not meaningful, a Graham number can not be calculated. The stock is trading at a 11.6% premium to its calculated fair value of $28.64. T did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% T earned one Star in this section for 3.) above and earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 31 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA T earned a Star in this section for its NPV MMA Diff. of the $1,161. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as T has. The stock's current yield of 5.76% exceeds the 3.68% estimated 20-year average MMA rate. Memberships and Peers: T is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: CenturyLink, I
- [By Rich Smith]
Lockheed Martin (NYSE: LMT ) and Boeing (NYSE: BA ) are of course the most obvious -- so dominant in the industry that they formed a joint venture boldly declaring themselves the "United Launch Alliance."
Top 10 Dividend Companies To Watch In Right Now: JDS Uniphase Corporation(JDSU)
JDS Uniphase Corporation provides communications test and measurement solutions, and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers, and enterprises worldwide. The company?s Communications Test and Measurement segment supplies instruments, software, and services to enable the design, deployment, and maintenance of communication equipment and networks. Its product portfolio consists of test tools, platforms, software, and services for wireless and fixed networks. The company?s Communications and Commercial Optical Products segment offers components, modules, subsystems, and solutions that are used by communications equipment providers for telecommunications and enterprise data communications. This segment?s products comprise transmitters, receivers, amplifiers, ROADMs, optical transceivers, multiplexers and demultiplexers, switches, optical-performance monitors and couplers, splitters, and circ ulators, which enable the transmission of video, audio, and text data through fiber-optic cables. It also provides various laser products, including diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers for micromachining, materials processing, bioinstrumentation, consumer electronics, graphics, medical/dental, and optical pumping; and photovoltaic products, such as concentrated photovoltaic cells and receivers for generating energy from sunlight, as well as fiber optic-based systems for delivering and measuring electrical power. The company?s Advanced Optical Technologies segment offers optical solutions for security and brand-differentiation applications; and thin film coatings for a range of public and private-sector markets. This segment also provides multilayer product-security solutions that deliver overt, covert, forensic, and digital product and document verification. JDS Uniphase Corporation was founded in 1979 and is headquartered in Milpitas, Califo rnia.
Advisors' Opinion:- [By Anders Bylund]
Close competitor NeoPhotonics (NYSE: NPTN ) soared 15% higher. Larger rival JDS Uniphase (NASDAQ: JDSU ) jumped 7.9% to become the fastest gainer on the S&P 500. If Ciena can beat its own expectations in selling Internet backbone equipment to a bevy of major telecoms, its chief rivals must eventually follow suit. JDS is only one month removed from its latest quarterly report, which sent shares diving 7% overnight (but all was forgiven a week later). NeoPhotonics also reported in early May, but didn't make any waves then.
- [By John Divine]
Shares of�JDS Uniphase (NASDAQ: JDSU ) lead off today's list, as they cratered 7.3% ahead of what ended up being disappointing earnings. Not only that, but the guidance issued for its next quarter just didn't live up to expectations. That seems to be a theme this earnings season: Even when a company boasts decent results, if future projections aren't up to par, the market will show no mercy.�
Top 10 Dividend Companies To Watch In Right Now: SPX Corporation(SPW)
SPX Corporation provides flow technology products, test and measurement products, thermal equipment and services, and industrial products and services worldwide. The company?s Flow Technology segment provides products and solutions that are used to process, blend, filter, dry, meter, and transport fluids. This segment?s primary offerings include engineered pumps, mixers, process systems, heat exchangers, valves, and dehydration and drying technologies for food and beverage, general industrial, and power and energy markets. Its Test and Measurement segment provides diagnostic service tools, fare-collection systems, and portable cable and pipe locators for the transportation, telecommunications, and utility industries. The company?s Thermal Equipment and Services segment engineers, manufactures, and services cooling, heating, and ventilation products, including dry, wet, and hybrid cooling systems for the power generation, refrigeration, HVAC, and industrial markets, as well as boilers, heating, and ventilation products for the commercial and residential markets. This segment also provides thermal components and engineered services. Its Industrial Products and Services segment designs, manufactures, and markets power systems; industrial tools and hydraulic units; precision machine components for the aerospace industry; crystal growing machines for the solar power generation market; television, radio, and cell phone and data transmission broadcast antenna systems; communications and signal monitoring systems; and precision controlled industrial ovens and chambers. SPX Corporation markets its products through various channels, including stocking distributors, manufacturing representatives, third-party distributors, direct sales, and retailers. The company was formerly known as Piston Ring Company and changed its name to SPX Corporation in 1988. SPX Corporation was founded in 1911 and is headquartered in Charlotte, North Carolina.
Advisors' Opinion:- [By Ben Levisohn]
The big question now: What impact will the closure happen to the fund’s biggest stock holding? As an activist investor, Relational doesn’t take many small positions. It holds 1.5% of Hewlett-Packard (HPQ) shares, for instance, 15% of SPX Corp. (SPW), 3.5% of B/E Aerospace (BEAV) and 4.6% of Timken (TKR).
- [By CRWE]
SPX Corporation (NYSE:SPW) reported that Jeremy Smeltser, currently transitioning into the CFO role at SPX, will present at the Nomura Inaugural U.S. Industrials Summit in New York City on Wednesday, May 9, 2012 at 12:00 p.m. Eastern time.
- [By Damon Churchwell]
These companies manufacture processing products used by industries such as food and beverages, oil & gas, and wastewater treatment, among others. They serve a wide range of end markets that are mostly poised for increased earnings and are likely to spend on capital projects. While these positive trends persist, flow technology companies' prospects ought to remain favorable. Let's�highlight several sector participants, starting with a top selection,�SPX�(NYSE: SPW),.
Top 10 Dividend Companies To Watch In Right Now: Freeport-McMoran Copper & Gold Inc.(FCX)
Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.
Advisors' Opinion:- [By Matt DiLallo]
It's been a challenging year for Freeport-McMoRan (NYSE: FCX ) . The company faced a number of obstacles to its now-closed acquisitions of Plains Exploration & Production and McMoRan Exploration Company. The good news, at least if you were in favor of these transactions, is that the deals are now closed and it can move forward.
- [By Matt DiLallo]
Gold investors weren't the only ones having a rough year. Other commodities such as silver and copper have been sinking this year as well, sending top stocks such as Silver Wheaton (NYSE: SLW ) and Freeport McMoRan (NYSE: FCX ) down by double digits. Again, looking at the chart, you can see a pretty big correlation between falling commodity prices and the subsequent fall in the price of each stock.
- [By Rich Duprey]
Mixed signals
Freeport-McMoRan (NYSE: FCX ) is looking to double its copper sales to the country within the next three years to take advantage of China's interest in expanding concentrate imports by 17% this year.�Southern Copper� (NYSE: SCCO ) , on the other hand, with the industry's largest copper reserves, intends on holding production at the same level it realized in 2012.
Top 10 Dividend Companies To Watch In Right Now: Potomac Electric Power Company(POM)
Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. It distributes electricity to approximately 1.8 million customers in the mid-Atlantic region and delivers natural gas to approximately 123,000 customers in Delaware. In addition, the company involves in the retail supply of electricity and natural gas; provision of energy efficiency services to federal, state, and local government customers; and designs, constructs, and operates combined heat and power and central energy plants, as well as owns and operates two oil-fired generation facilities. Further, it offers high voltage electric construction and maintenance services, low voltage electric construction and maintenance services, and streetlight construction and asset management services to utilities, municipalities, and other customers in the Washington, District of Columbia. Additionally, the company holds investments in eight cross-border energy leases. Pepco Holdings, Inc. was founded in 1896 and is based in Washington, District of Columbia.
Advisors' Opinion:- [By Ben Levisohn]
Pepco (POM) has surged 18% to $26.87 after it agreed to be purchased by Exelon (EXC) for $27.25 a share in an all-cash deal. Exelon has dropped 2.4% to $35.31.
Top 10 Dividend Companies To Watch In Right Now: Nucor Corporation(NUE)
Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot and cold-rolled sheet steel; plate steel; structural steel comprising wide-flange beams, beam blanks, and sheet piling; and bar steel, such as blooms, billets, concrete reinforcing bar, merchant bar, and special bar quality products. The Steel Products segment offers steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, light gauge steel framing, steel grating and expanded metal, and wire and wire mesh products. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal products. The company?s operations also include various international trading companies that buy and sell steel and steel products. It sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. The company?s products are used by contractors in constructing highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings. Nucor Corporation was founded in 1940 and is based in Charlotte, North Carolina.
Advisors' Opinion:- [By Jonathan Yates]
Steel industry stocks such as ArcelorMittal, Nucor Corporation (NYSE: NUE), and AK Steel Holding (NYSE: AKS) are undervalued. As an example, AK Steel Holding is selling at a price-to-sales ratio of 0.14. That means that each dollar of sales is valued at more than an 80 percent discount in the stock price. It is much the same for Nucor Corporation, too. ArcelorMittal is selling at a deep discount priced to the value of its assets (0.39) and the amount of its sales (0.44).
- [By Dividend]
Nucor (NUE) has a market capitalization of $14.83 billion. The company employs 22,200 people, generates revenue of $19.429 billion and has a net income of $593.13 million. Nucor�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.665 billion. The EBITDA margin is 8.57 percent (the operating margin is 4.39 percent and the net profit margin 3.05 percent).
- [By Ben Levisohn]
The one exception to the general negativity: Nucor (NUE), but even it gets a price-target cut. Gibbs and Kenyon explain why:
We are maintaining our BUY rating on shares of [Nucor] but reducing our price target to $59. Amid near-term uncertainty, we believe investors seeking to put new money to work in the sector will prefer�[Nucor] given industry leading ROIC/balance sheet metrics, strong free cash flow generation, broad-based leverage to non-residential construction, and ongoing vertical integration (DRI and natural gas) strategy. Near-term Street expectations also appear more reasonable to us.
- [By Dividends4Life]
The basic materials sector is highly cyclical. It relies on a strong economy to create demand for its raw materials. Since most of its products are considered to be commodities, the sector is sensitive to supply and demand fluctuations, with end-users able to substitute based on price.
Historically, yields in this sector have been on the lower end of the scale. However, with the increased demand for certain raw materials, the stocks in this sector are beginning to see higher yields with increased profitability. In addition, depressed prices on some companies have also boosted yields.
This week, I screened my dividend growth stocks database for Basic Materials companies with a yield above 2.0% and that have increased their dividends for at least 10 consecutive years. The results are presented below:
RPM International Inc. (RPM) makes specialty coatings and products for structural waterproofing and corrosion control, as well as products for the consumer, do-it-yourself and hobby markets. The company has paid a cash dividend to shareholders every year since 1969 and has increased its dividend payments for 40 consecutive years. Yield: 2.3%
Air Products and Chemicals Inc. (APD) is a major producer of industrial gases and electronics and specialty chemicals also has interests in environmental and energy-related businesses. Air Products and Chemicals Inc. is a major producer of industrial gases and electronics and specialty chemicals also has interests in environmental and energy-related businesses. Yield: 2.5%
Nucor Corporation (NUE) is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. Nucor Corporation is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. Yield: 2.7%
Alliance Resource Partners LP (ARLP) produces and markets coal primarily to utilities and industr
Top 10 Dividend Companies To Watch In Right Now: Resource Capital Corp.(RSO)
Resource Capital Corp. operates as a specialty finance company that focuses primarily on commercial real estate and commercial finance in the United States. The company?s commercial real estate-related investments include first mortgage loans, first priority interests in first mortgage real estate loans, subordinate interests in first mortgage real estate loans, mezzanine loans, and commercial mortgage-backed securities. It also invests in commercial finance assets, including senior secured corporate loans, other asset-backed securities, equipment leases and notes, trust preferred securities, and debt tranches of collateralized debt and loan obligations. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it is not subject to federal corporate income tax to the extent that it distributes 90% of its REIT taxable income. The company was founded in 2005 and is based in New York, New York.
Advisors' Opinion:- [By Eric Volkman]
Resource Capital (NYSE: RSO ) is dipping into its coffers for another shareholder payout. The company has declared a dividend for its current quarter of $0.20 per share, which is to be paid on July 26 to shareholders of record as of June 28. That amount matches each of the company's previous five distributions, the most recent of which was paid in late April. Before that, Resource Capital was more generous, dispensing $0.25 per share.
No comments:
Post a Comment