With shares of International Business Machines�(NYSE:IBM) trading around $182, is IBM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s MovementIBM is an information technology company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Technology products and services are in high demand worldwide, as consumers want to be up to speed and companies always need the latest and greatest to stay ahead of the competition. Cloud computing has been hot in recent times, which has not been good news for IBM. Should the company want to hold on to its market share, it needs to make moves quickly and provide the technology products and services that worldwide consumers and companies demand.
Chinese PC maker Lenovo Group Ltd. agreed to buy IBM Corp’s low-end server business for $2.3 billion in what is set to be China’s biggest technology deal.�The long-awaited acquisition comes nearly a decade after Lenovo bought IBM’s loss-making ThinkPad business for $1.75 billion, eventually becoming the world leader in personal computers in 2012.�The sale of the low-end server operation — which still needs U.S. government approval — will allow International Business Machines to focus on its decade-long shift to more profitable software and services.
Best Oil Companies To Own For 2015: Elizabeth Arden Inc.(RDEN)
Elizabeth Arden, Inc., a beauty products company, engages in the manufacture, distribution, marketing, and sale of fragrances, skin care, and cosmetic products to retailers and other outlets worldwide. It offers various fragrance products for men and women, including perfume, colognes, eau de toilettes, eau de parfums, body sprays, and gift sets, as well as bath and body products, such as soaps, deodorants, body lotions, gels, creams, and dusting powders. The company sells its fragrance products under the Red Door, Elizabeth Arden 5th Avenue, Elizabeth Arden green tea, Pretty Elizabeth Arden, Curve, Giorgio Beverly Hills, PS Fine Cologne, White Shoulders, Juicy Couture, Kate Spade New York, John Varvatos, Rocawear, Alberta Ferretti, Halston, Geoffrey Beene, Alfred Sung, Bob Mackie, and Lucky. Its skin care products comprise moisturizers, creams, lotions, and cleansers under the Ceramide, Prevage, Eight Hour Cream, and Visible Difference. The company?s cosmetic products co nsist of foundations, lipsticks, mascaras, eye shadows, and powders in various shades and colors under the Elizabeth Arden brand name. Elizabeth Arden, Inc. sells its products primarily to department and specialty stores, mass retailers, perfumeries, boutiques, distributors, and travel retail outlets, as well as to independent fragrance, cosmetic, gift, and other stores. It also markets and sells its products through its e-commerce site at elizabetharden.com. The company was founded in 1960 and is headquartered in Miramar, Florida.
Advisors' Opinion:- [By Jake L'Ecuyer]
Shares of Elizabeth Arden (NASDAQ: RDEN) got a boost, shooting up 9.95 percent to $31.27. LG Household & Healthcare is considering a bid for Elizabeth Arden, according to Reuters.
- [By Monica Gerson]
Elizabeth Arden (NASDAQ: RDEN) reported a wider fiscal-third-quarter loss and announced its plans to explore its strategic alternatives. Elizabeth Arden posted a quarterly adjusted loss of $0.84 per share on revenue of $210.8 million. However, analysts were projecting the company to break even on revenue of $256.9 million. Elizabeth Arden shares dipped 16.73% to $29.67 in the after-hours trading session.
- [By Jack Kramer and Nick Martell] What's the best way to share your enthusiasm for stocks reaching new records? "Primp" your dog to look like a panda. (It's the cool thing to do in China right now, according to the New York Post. Seriously.) The Dow Jones Industrial Average (DJINDICES: ^DJI ) (DJINDICES: ^DJI ) gained 20 points Tuesday, touching a new all-time high midday.
1. Cosmetics giant Elizabeth Arden delivers ugly earnings
It's too bad you can't put some foundation and blush on a corporate earnings report to make it look better. That's what the cosmetics chemists over at makeup giant Elizabeth Arden (NASDAQ: RDEN ) wish they had done after the stock fell 22.8% Tuesday following its unattractive earnings report -- revenue fell 20% last quarter to $210.8 million, well below the $256.9 million Wall Street expected.
Unlike everyone's favorite model, Heidi Klum, Elizabeth Arden struggled all across Planet Earth to kick off 2014. In North America, sales fell 23% as the company launched fewer fragrances than usual and dealt with the brutal winter weather deterring beauty-seeking consumers. And despite Arden's presence in 120 countries worldwide, international sales fell 16% after management "strategically decides" to reduce its shipments to avoid giving out brand-hurting discounts at the end of the season.
The takeaway is that Elizabeth Arden is trying to get picked up like it's on a corporate date. Just last month, Household Health & Care announced that it was interested in purchasing Arden. So during the earnings report, the company tried to please investors by mentioning that it's working with Goldman Sachs, as if the bank is a matchmaker, to explore "strategic options" for its future.
2. Green Mountain Coffee Roasters enjoys some Coke love
It was a caffeine surge for Keurig Green Mountain (NASDAQ: GMCR ) after soda giant Coca-Cola (NYSE: KO ) announced Tuesday it will buy millions more share - [By Vinay Singh]
Heavy promotions are key for retailers during the holiday season. This is especially true when people are less willing to open their wallets. Moreover, when all of the other industry players promote their products and provide deep discounts to attract customers, the ones who don't will face the consequences. Elizabeth Arden (RDEN), a provider of beauty products, is an apt example.
Top Information Technology Companies To Own In Right Now: Physicians Realty Trust (DOC)
Physicians Realty Trust, incorporated on April 9, 2013, is a real estate investment trust (REIT). The Company is a self-managed healthcare real estate company. The Company is engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing healthcare services. The Company�� properties are located on a campus with a hospital or other healthcare facilities or strategically located and affiliated with a hospital or other healthcare facilities. The Company�� principal investments will include medical office buildings, outpatient treatment facilities, acute and post-acute care hospitals, as well as other real estate integral to healthcare providers. The Company�� initial portfolio will consist of 19 medical office buildings located in 10 states with approximately 528,048 net leasable square feet. Effective August 27, 2013, Physicians Realty Trust acquired an undisclosed hospital, located in Plano, Texas, an owner and operator of hospital. In September 2013, Physicians Realty Trust completion of the sale-leaseback of the surgical hospital and adjacent medical office building occupied by the Foundation Surgical Hospital of El Paso, L.L.C. In October 2013, Physicians Realty Trust announced the completion of the acquisition of the Foundation Outpatient Care Building located in Oklahoma City, OK. Effective January 8, 2014, Physicians Realty Trust acquired an undisclosed ambulatory surgery center, located in Great Falls, Montana. In February 2014, the Company's operating partnership, Physicians Realty L.P., closed on the purchase and leaseback of four medical office buildings to an Atlanta, Georgia-based family medical practice.
The Company�� Surgical Hospital-New Orleans, Louisiana property is a 57,000 square foot, 42-bed acute care surgical hospital with six operating rooms. The hospital specializes in ortho/neuro spine surgery, orthopedics, ! weight loss surgery and other scheduled general surgery procedures. Surgical Hospital and Medical Office Building-El Paso, Texas property is a 77,000 square foot, 40-bed acute care hospital with six operating rooms. The Company's initial portfolio was acquired or developed by healthcare real estate funds managed by B.C. Ziegler & Company (Ziegler), a specialty investment banking firm focused on the healthcare industry, and another subsidiary of The Ziegler Companies, Inc. As part of its formation transactions, the Ziegler Funds will contribute their ownership interests in these properties to its operating partnership.
Advisors' Opinion:- [By Marc Bastow]
Healthcare REIT Physicians Realty Trust (DOC) was right up their with Ford in raising its quarterly dividend 25%, to 22.5 cents per share, payable Feb. 7 to shareholders of record as of Jan. 24.
DOC Stock Dividend Yield: 7.02%
Top Information Technology Companies To Own In Right Now: Great Plains Energy Inc (GXP)
Great Plains Energy Incorporated (Great Plains Energy), incorporated on February 26, 2001, is a public utility holding company. The Company does not own or operate any assets other than the stock of its subsidiaries. Great Plains Energy�� wholly owned direct subsidiaries with operations or active subsidiaries includes Kansas City Power & Light Company (KCP&L), and KCP&L Greater Missouri Operations Company (GMO). The Company is engaged in the business segment of electric utility. The electric utility segment consists of KCP&L, a regulated utility, and GMO�� regulated utility operations, which include its Missouri Public Service and St. Joseph Light & Power (L&P) divisions. Electric utility serves approximately 825,300 customers located in western Missouri and eastern Kansas.
KCP&L is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. KCP&L has one active wholly owned subsidiary, Kansas City Power & Light Receivables Company (Receivables Company). GMO is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO wholly owns MPS Merchant Services, Inc. (MPS Merchant), which has certain long-term natural gas contracts remaining from its former non-regulated trading operations.
Customers include approximately 726,100 residences, 96,600 commercial firms, and 2,600 industrials, municipalities and other electric utilities. During the year ended December 31, 2012, electric utility�� retail revenues averaged approximately 90% of its total operating revenues. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of electric utility�� revenues. During 2012, electric utility�� total electric revenues were 100% of Great Plains Energy�� revenues. During 2012, electric utility�� net income accounted for approximately! 108%, of Great Plains Energy�� income from continuing operations, respectively.
Advisors' Opinion:- [By David Dittman]
Question: It�� not a popular name, but what are your thoughts on Great Plains Energy Inc (NYSE: GXP) with regard to dividend hikes and price?
Answer: I have Great Plains Energy rated ��old��right now. But 100 percent of revenue is regulated–i.e., predictable and stable–and 2013 earnings growth was outstanding due to a resurgent regional economy.
- [By Justin Loiseau]
Reeling in rates
Great Plains Energy (NYSE: GXP ) shares are up 18.3% in the past year, a sign that something's going right for this Missouri/Kansas utility company. Fiscal 2013 EPS bumped up 8%, but the real gains came from regulation risk reduction. After filing for rate increases in early 2012, Great Plains got the green light from regulators to boost its 2013 prices. On the unregulated front, the utility generates 83% of its electricity from coal and 14% from nuclear power, a (recently revealed) welcome relief from natural gas' rapidly rising prices. - [By Justin Loiseau]
As coal prices regain their competitive edge, investors should watch TECO Energy (NYSE: TE ) , Great Plains Energy (NYSE: GXP ) , and FirstEnergy (NYSE: FE ) .
- [By Eric Volkman]
Great Plains Energy (NYSE: GXP ) is keeping its dividend as level as the geographical feature in its company name. The company will distribute $0.2175 per share of its common stock on June 20 to shareholders of record as of May 20.� This amount matches the company's previous two disbursements, the most recent of which was paid in March. Before that, Great Plains handed out $0.2125.
Top Information Technology Companies To Own In Right Now: TRW Automotive Holdings Corporation(TRW)
TRW Automotive Holdings Corp., together with its subsidiaries, designs, manufactures, and sells automotive systems, modules, and components for automotive original equipment manufacturers and related after-markets. It operates in four segments: Chassis Systems, Occupant Safety Systems, Electronics, and Automotive Components. The Chassis Systems segment offers product lines relating to steering gears and systems, foundation brakes, modules, brake controls, and linkage and suspension. The Occupant Safety Systems segment provides airbags, seat belts, steering wheels, and occupant restraint systems. The Electronics segment offers various products comprising safety electronics, radio frequency electronics, chassis electronics, powertrain electronics, and driver assist systems. The Automotive Components provides body controls, engine valves, and engineered fasteners and components. The company offers its products for passenger cars, light trucks, and commercial vehicles worldwid e. TRW Automotive Holdings Corp. was founded in 1904 and is based in Livonia, Michigan.
Advisors' Opinion:- [By Patricio Kehoe]
Automobile manufacturers have been performing well as of late, largely due to increasing sales pushed by a recovering U.S. economy and growing emerging markets. Auto parts suppliers, such as TRW Automotive Holdings Corp (TRW) and Johnson Controls Inc. (JCI), are bound to benefit largely from rising sales, and thus present themselves as interesting investment opportunities. However, due to their focus on different industry segments, and their current stock valuation, investing in only one of these companies makes sense.
Safety Sells - [By Ben Levisohn]
Cooper Tire & Rubber (CTB) has gained 1% to $24.86 today, but its trading more on whether investors expect its acquisition by Apollo Tyres to be completed. Car-part companies, however, are also exhibiting weakness today. TRW Automotive (TRW) has fallen 0.8% to $77.91, Lear (LEA) has dipped 0.4% to $74.78 and American Axel and Manufacturing (AXL) is off 0.5% to $18.99.
- [By guruek]
TRW Automotive Holdings Corp (TRW): Director Neil P. Simpkins Sold 10,273,062 Shares
Director of TRW Automotive Holdings Corp (TRW) Neil P. Simpkins sold 10,273,062 shares on 08/05/2013 at an average price of $71.34.
Top Information Technology Companies To Own In Right Now: Banco Santander Brasil SA (BSBR)
Banco Santander (Brasil) S.A. (Santander Brasil), incorporated on August 9, 1985, is a full-service bank in Brazil. The Bank operates its business along three segments: Commercial Banking, Global Wholesale Banking and Asset Management and Insurance. Through its Commercial Banking segment, the Bank offers traditional banking services, including checking and savings accounts, home and automobile financing, unsecured consumer financing, checking account overdraft loans, credit cards and payroll loans to mid- and high-income individuals and corporations (other than to its Global Banking and Markets clients). Its Global Wholesale Banking segment provides financial services and solutions to a group of approximately 700 local and multinational conglomerates, offering such products as global transaction banking, syndicated lending, corporate finance, equity and treasury. Through its Asset Management and Insurance segment, the Company manages fixed income, money market, equity and multi-market funds and offers insurance products complementary to its core banking business to its retail and small- and medium-sized corporate customers.
Lending Activities
As of December 31, 2010, the Bank�� total loans and advances to customers equaled R$160.6 billion (42.9% of its total assets). Net of allowances for credit losses, loans and advances to customers equaled R$151.4 billion as of December 31, 2010 (40.4% of its total assets). In addition to loans, it had outstanding R$93.5 billion as of December 31, 2010.
Substantially all of its loans are to borrowers domiciled in Brazil and are denominated in reais. Its commercial, financial and industrial loans include primarily loans to small and medium-sized enterprises (SMEs) in its Commercial Banking segment, and to Global Banking and Markets corporate and business enterprise customers in its Wholesale Global Banking segment. The principal products offered to SMEs in this category include revolving loans, overdraft facilities, installme! nt loans, working capital and equipment finance loans. Credit approval for SMEs is based on customer income, business activity, collateral coverage and internal and external credit scoring tools. Collateral on commercial, financial and industrial lending to SMEs generally includes receivables, liens, pledges, guarantees and mortgages, with coverage generally ranging from 100% to 150% of the loan value depending on the risk profile of the loan. Its Wholesale Global Banking customers are offered a range of loan products ranging from typical corporate banking products (installment loans, working capital and equipment finance loans) to more sophisticated products (derivative and capital markets transactions).
The Bank�� Real estate-construction loans include construction loans made principally to real estate developers that are SMEs and corporate customers in its Wholesale Global Banking Segment. Loans in this category are generally secured by mortgages and receivables, though guarantees may also be provided as additional security. Real estate-mortgage loans include loans on residential real estate to individuals. All loans granted under this category are secured by the financed real estate. Installment loans to individuals consist primarily of unsecured personal installment loans (including loans whose payments are automatically deducted from a customer�� payroll), revolving loans, overdraft facilities, consumer finance facilities and credit cards. Lease financing includes primarily automobile leases and loans to individuals. The vehicle financed acts as collateral for the particular loan granted.
Investment Activities
The Bank�� investments include Government securities-Brazil, Government securities-other countries and other debt securities. As of December 31, 2010, the book value of the investment securities was R$84.7 billion (representing 22.6% of its total assets). Brazilian government securities totaled R$55.8 billion, or 65.9% of the Bank�� investment! securiti! es as of December 31, 2010. As of December 31, 2010, the Bank held no securities of single issuers or related group of companies whose aggregate book or market value exceed 10% of stockholders��equity, other than Brazilian government securities, which represented 76.9% of its stockholders��equity.
Sources of Funds
The Bank offers its customers a variety of deposit products, such as current accounts (also referred to as demand deposits), which do not bear interest; traditional savings accounts, which earn the Brazilian reference rate for savings accounts (taxa referencial) plus 0.5% per month, as set by the federal government, and time deposits, which are represented by certificates of bank deposits (CDBs), which normally have a maturity of less than 36 months and earn interest at a fixed or floating rate. In addition, it accepts deposits from financial institutions as part of its treasury operations, which are represented by certificates of interbank deposit CDIs, and which earn the interbank deposit rate.
Advisors' Opinion:- [By Jake L'Ecuyer]
Banco Santander (Brasil) SA (NYSE: BSBR) shares were also up, gaining 15.74 percent to $6.69 on Q1 results. The company reported Q1 recurring net income of 1.427 billion reais ($637 million).
Top Information Technology Companies To Own In Right Now: Winnebago Industries Inc.(WGO)
Winnebago Industries, Inc. manufactures and sells recreation vehicles primarily for leisure travel and outdoor recreation activities. The company offers motor homes, which are self-propelled mobile dwellings that provide living accommodations for approximately seven persons and include kitchen, dining, sleeping, and bath areas, as well as a lounge; and optional equipment accessories, such as generators, home theater systems, king-size beds, upholstery, and interior equipment. It manufactures motor homes constructed directly on medium- and heavy-duty truck chassis, which include engine and drivetrain components; and on van-type chassis onto which the motor home manufacturer constructs a living area with access to the driver's compartment under the Winnebago and Itasca brand names, as well as panel-type vans with sleeping, kitchen, and/or toilet facilities under the Era brand name. The company also produces original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. Winnebago Industries markets its motor homes through independent dealers primarily in the United States and Canada. The company was founded in 1958 and is headquartered in Forest City, Iowa.
Advisors' Opinion:- [By Jack Kramer and Nick Martell]
2. Winnebago sales surged last quarter
If the van is a-rockin', investors come a-knockin'. That's the basic premise behind the recent performance of Winnebago (NYSE: WGO ) , the recreational-vehicle giant that all good nature-loving rural Americans love. The stock rose 3.6% Monday after reporting $247.7 million in quarterly revenue, a 13.5% jump from the same period last year. - [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]
Among the companies with shares expected to actively trade in Thursday’s session are Citigroup Inc.(C), GameStop Corp.(GME) and Winnebago Industries Inc.(WGO)
- [By Grace L. Williams]
Recreational vehicle maker Winnebago Industries (WGO), which makes, you know, Winnebagos, is trucking today after reporting strong revenue and increased demand in its fourth quarter.
APFor the period ended Aug. 31, Winnebago reported profit of $10.6 million, or 38 cents a share, down from $40.9 million, or $1.41 a share, a year earlier, while sales rose to $214.2 million in the quarter. Analysts polled by Thomson Reuters recently predicted earnings of 28 cents a share and sales of $206 million.
Looking at the solid quarter and optimistic forecasts, Citigroup analyst Gregory Badishkanian raised estimates after noting several positive factors at the company including the current backlogs, which more than doubled, and dealer inventories, which were up 38%. He writes:
The company highlighted two issues that appear to be diminishing: 1) towables division was dilutive for the year, but headed in the right direction with a breakeven quarter 2) shortage in Class A Gas chassis, though the issue should be resolved by mid-winter…
Given strong margin and retail demand trends, we��e raising our 2014 and 2015 estimates by 26 cents each. We introduce our 2016 estimate of $ 1.60.
Shares of Winnebago have gained 4.4% to $28.47 today at 3pm. Thor Industries (THO), which also makes recreational vehicles, has ticked up 0.1% to $57.56, Drew Industries (DW) has risen 0.3% to $48.74, Arctic Cat (ACAT) has advanced 1% to $59.87 and Polaris Industries (PII) has fallen 0.3% to $132.08.
Top Information Technology Companies To Own In Right Now: Surge Energy Inc (ZPTAF.PK)
Surge Energy Inc. is an oil focused exploration and production (E&P) company. The Company has projects in Southern Saskatchewan/the Williston Basin, SE Alberta and Valhalla/Nipisi. In January 2014, Surge Energy Inc. announced the SE Saskatchewan light oil acquisition. Advisors' Opinion:- [By Value Digger]
In late January 2013, I wrote an article about Surge Energy (ZPTAF.PK), an oil-weighted intermediate producer with operations in Canada and US. It was when the price dropped below $4. Actually, I recommended Surge Energy back then at $3.7, for the reasons mentioned here.
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