With its first-quarter earnings release on Thursday, investors are finally seeing signs of a bright future at Energy Transfer Partners (NYSE: ETP ) . Adjusted EBITDA grew $462 million year over year, and revenue blew past expectations, coming in at approximately $10.9 billion.
As management continues to simplify the structure at ETP -- which requires moving assets between Energy Transfer Equity (NYSE: ETE ) �and theoretically Sunoco Logistics Partners (NYSE: SXL ) -- year-over-year comparisons will be full of asterisks indicating earnings from the previous structure, as well as the one-time charges we are accustomed to seeing. With that in mind, today I'm focusing primarily on ETP from an operations and progress perspective, highlighting three key areas investors should take away from the first quarter.
1. Growth�
ETP's Midstream unit turned in an excellent performance on the back of increasing production in the Eagle Ford Shale. NGL production was way up on ETP's legacy assets, and fee-based revenue in this segment climbed from $70 million to $97 million year over year. The bulk of that, some $22 million, can be attributed solely to growth in the Eagle Ford.
5 Best Growth Stocks To Invest In 2015: Coinstar Inc.(CSTR)
Coinstar, Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. The company owns and operates self-service Redbox kiosks that enable consumers to rent or purchase movies and video games; and self-service coin-counting kiosks where consumers can convert their coin to cash, a gift card, or an E-certificate. It also engages in identifying, evaluating, building, and developing new self-service concepts in the automated retail space, which includes coffee, refurbished electronics, and photo self-service concepts. As of December 31, 2011, the company had 35,400 Redbox kiosks in 29,300 locations and 20,200 coin-counting kiosks in 19,900 locations primarily in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. Coinstar, Inc. was founded in 1991 and is headquartered in Bellevue, Washington.
Advisors' Opinion:- [By Canadian Value]
Position % of Fund Assets 1) First American Financial Corp. (FAF) 7.0% 2) Apple, Inc. (AAPL) 6.5% 3) Coinstar, Inc. (CSTR) 4.8% 4) EMC Corp. (EMC) 4.4% 5) Coach, Inc. (COH) 4.4% 6) Kohl's Corp. (KSS) 4.1% 7) Blucora, Inc. (BCOR) 4.0% 8) Tetra Tech, Inc. (TTEK) 3.1% 9) OM Group, Inc. (OMG) 3.0% 10) American International Group, Inc. (AIG) 2.8% TOTAL 44.1% One area that we believe still offers some value in the market is in high quality, large��ap technology stocks that may be momentarily out��f��avor as they transition from rapid growth to slower growth. In particular, we become interested when that transition is also accompanied by a change in capital allocation policies designed to return more cash to shareholders in the form of dividends and share repurchases. We believe that Apple and EMC are two of the absolute highest quality technology businesses in the world and both have recently announced very material, shareholder��friendly changes to how they will allocate capital.
Top Logistics Stocks To Invest In Right Now: TICC Capital Corp.(TICC)
TICC Capital Corp., a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. The company was formerly known as Technology Investment Capital Corp. and changed its name to TICC Capital Corp. in December 2007. TICC Capital Corp. was founded in 2003 and is headquartered in Greenwich, Connecticut.
Advisors' Opinion:- [By Monica Gerson]
TICC Capital (NASDAQ: TICC) is estimated to report its Q4 earnings at $0.28 per share on revenue of $28.43 million.
Fuel-Tech (NASDAQ: FTEK) is expected to post its Q4 earnings at $0.06 per share on revenue of $29.00 million.
Top Logistics Stocks To Invest In Right Now: Ocean Power Technologies Inc.(OPTT)
Ocean Power Technologies, Inc. engages in the development and commercialization of proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in North America, Europe, Asia, and Australia. The company offers utility PowerBuoy system to supply electricity to a local or regional electric power grid; and autonomous PowerBuoy system that is designed to generate power for use independent of the power grid in remote locations. Its autonomous PowerBuoy system is also used in various applications, including homeland security, off-shore oil and gas platforms, aquaculture, and ocean-based communication and data gathering, such as tsunami warnings. The company sells its products to public utilities, independent power producers, and other governmental entities and agencies, as well as public and private entities that use electricity in and near the ocean. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Penn ington, New Jersey.
Advisors' Opinion:- [By Konrad Kuhn]
Ocean Power Technologies (OPTT) is a pioneer in wave energy technology that harnesses ocean wave resources, to generate clean and environmentally-beneficial electricity.
- [By John Udovich]
Small cap Ocean Power Technologies Inc (NASDAQ: OPTT) just sank 34% on news that they have fired their CEO "for cause,��meaning its worth taking a closer look at the stock to see if there is anything to salvage (shares were rising more than 6% in after hours) plus take a look at the performance of potential renewable energy related peers like Ormat Technologies, Inc (NYSE: ORA), Broadwind Energy Inc (NASDAQ: BWEN) and China Ming Yang Wind Power Group Ltd (NYSE: MY).
Top Logistics Stocks To Invest In Right Now: AeroVironment Inc.(AVAV)
AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
AeroVironment (NASDAQ: AVAV) was also up, gaining 19.50 percent to $37.92 after the company reported upbeat Q3 earnings.
Equities Trading DOWN
Shares of XOMA (NASDAQ: XOMA) were down 27.54 percent to $6.84 after the company reported Q4 results and provided anupdate on its gevokizumab development program. Credit Suisse downgraded the stock from Outperform to Neutral. - [By Abigail W., Adams]
General Atomics' Predators and Reapers, however, are losing their status. DOD contracts for MQ-9 Reaper procurement fell from $979 million in 2013 to $411 million for 2015. Predator procurement was reduced from $28 million in 2013 to $5 million for 2015. AeroVironment's (NASDAQ: AVAV ) RQ-11 Raven, a portable UAV capable of reconnaissance, surveillance, and target identification, were also a favorite for combat operations in Iraq and Afghanistan. The Raven, however, took an enormous hit in 2015. Procurement contracts for the compact drone dropped from $30 million in 2013 to $13 million for 2015.
- [By Roberto Pedone]
One aerospace player that insiders are loading up on here is AeroVironment (AVAV), which is engaged in the design, development, production and support of unmanned aircraft systems and efficient energy systems for various industries and governmental agencies. Insiders are buying this stock into decent strength, since shares are up 23% during the last six months.
AeroVironment has a market cap of $504 million and an enterprise value of $379 million. This stock trades at a premium valuation, with a trailing price-to-earnings of 108.75 and a forward price-to-earnings of 44.35. Its estimated growth rate for this year is 47.4%, and for next year it's pegged at 82.1%. This is a cash-rich company, since the total cash position on its balance sheet is $128.81 million and its total debt is zero.
A director just bought 5,000 shares, or about $112,000 worth of stock, at $22.50 per share.
From a technical perspective, AVAV is currently trending right below its 50-day moving average and above its 200-day moving averages, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $20.78 on the downside and $23.97 on the upside. Shares of AVAV are now starting to trend within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.
If you're bullish on AVAV, then look for long-biased trades as long as this stock is trending above support at $22.30 or above its 200-day at $21.05 and then once it breaks out above some near-term overhead resistance levels at $23.60 to $23.97 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 205,927 shares. If that breakout triggers soon, then AVAV will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $28 a share.
Top Logistics Stocks To Invest In Right Now: Banco Macro SA (BMA)
Banco Macro S.A. (the Bank), incorporated on November 21, 1966, is a bank in Argentina. The Bank provides standard banking products and services to a nationwide customer base. The Bank has two categories of customers: retail customers, which include individuals and very small companies, and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to four provincial governments. The Bank offers a range of standard products, which are available to both its retail and corporate customers. Retail customers are individuals, entrepreneurs and very small companies (companies with less than Pesos one million in sales per year). It provides services to them throughout Argentina, in particular outside of the City of Buenos Aires, which has higher concentrations of low- and middle-income individuals who are traditionally underserved by large private banks. The Bank serves its retail customers through its nationwide branch network. Approximately 94% of the Bank�� branches are located outside of the City of Buenos Aires.
The Bank offers its retail customers traditional banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans (including personal loans), mortgage loans, car loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines (ATMs) and money transfers. The Bank offers personal loans, document discounts, (housing) mortgages, overdrafts, pledged loans and credit card loans to its retail customers.
The Bank provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management services. It also provides them trust, payroll and financial agency services, corporate credit cards a! nd other specialty products. The corporate business is focused on the classification by sizes and sectors. The Bank has four categories for its corporate customers: small companies, which register up to Pesos 52 million in sales per year; medium companies, which register more than Pesos 52 million and less than Pesos 150 million in sales per year; major companies, which register more than Pesos 150 million in sales per year, and agro companies, which operate in agriculture or in the commerce of its products (approximately 97% of its corporate customers are small businesses).
The Bank�� lending activities to the corporate sector (defined here as firms with loans outstanding in excess of Pesos 20,000) totaled Pesos 4,985 million. Most of its lending activity consists of working capital loans to small and medium-sized businesses. The Bank offers short-term and medium- to long-term corporate lending products. Short-term products include credit lines for up to 180 days and consist mainly of overdraft facilities, corporate credit and debit cards and factoring, as well as foreign trade related financing, such as pre-export, post-shipment and import financing. Medium-to long-term products include credit lines and specific lending facilities of more than 180 days.
The Bank offers transaction services to its corporate customers, such as cash management, customer collections, payments to suppliers, payroll administration, foreign exchange transactions, foreign trade services, corporate credit cards and information services, such as its Datanet and Interpymes services. The Bank�� payments to suppliers��services enable its customers to meet their payment obligations to their suppliers on a timely basis through a system. This service also provides payment liquidations, tax payment receipts, invoices and any other documents required by the payer.
The Bank�� collection services include cash or check deposits at its 408 branches, automatic and direct debits from checking ! or saving! s accounts and the transportation of funds collected from corporate customers to its branches for deposit. The Bank provides its corporate clients with access to the Datanet service, which is an electronic banking network linking member banks in Argentina. These services permit its clients to obtain reliable online information on a real-time basis from their bank accounts in Datanet, as well as perform certain transactions. The Bank also provides tax collection and financial agency services to four provinces.
The Bank competes with Santander Rio, Banco de Galicia y Buenos Aires S.A., BBVA Banco Frances S.A., HSBC Argentina S.A. and Banco Patagonia S.A.
Advisors' Opinion:- [By Roberto Pedone]
Marco Bank (BMA) offers a range of traditional banking products and services to corporates, SME's and individuals in Argentina. This stock closed up 5.6% at $20.93 in Monday's trading session.
Monday's Volume: 404,000
Three-Month Average Volume: 78,386
Volume % Change: 504%From a technical perspective, BMA jumped sharply higher here right above some near-term support at $19 with strong upside volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $13.63 to its recent high of $21.73. During that move, shares of BMA have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BMA within range of triggering a big breakout trade. That trade will hit if BMA manages to take out its 52-week high at $21.73 with high volume.
Traders should now look for long-biased trades in BMA as long as it's trending above some key near-term support levels at $19 to $18.29 and then once it sustains a move or close above its 52-week high at $21.73 with volume that's near or above 78,386 shares. If that breakout hits soon, then BMA will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $27.
- [By Federico Zaldua]
Despite growing expenses, in local currency terms, the bank's net income improved 16% year-over-year (yoy) while Non-Performing-Loans (NPL) have been kept below 4%. Hence, through Galicia, you can invest in an operationally healthy bank that shall behave in line with government bonds. Trading at 3 times P/E and 75% book value I think Galicia is good bet within the space.
High Exposure to Public Debt
Banco Macro (BMA) has been one of the highest growing banks during the last two decades. One interesting thing about Banco Macro is that the bank owns approximately $400 million of government related securities when the bank's total market capitalization is now just above $1 billion. On the other hand, Banco Macro is growing earnings aggressively at a 39% year over year rate in local currency terms with a very low (and stable) 1.6% NPL rate. Banco Macro is slightly more expensive than Galicia trading at 80% its book value and 3.2 times P/E.
No comments:
Post a Comment