The Street may not have been excited about the official announcement of a merger between Reynolds American (RAI) and Lorillard (LO), but Morgan Stanley thinks that there is too much pessimism �about the potential deal.
Analyst David Adelman and his team upgraded both stocks today from Underweight to Equal Weight, writing that risk-reward is more balance for both names now.
Adelman cites a lower-than-expected acquisition price, given the stocks��double-digit declines since the merger�� announcement, and writes that while there are still concerns that regulators would block a deal, he sees more opportunity than he did in late June, when he downgraded the stocks.
More from his note:
We downgraded LO and RAI on June 24, then taking the view that the market was already pricing in an extremely optimistic M&A scenario, which created a negative risk-reward skew. While a transaction was ultimately announced on July 15, LO and RAI�� share prices have subsequently declined 10% and 11%, respectively. This in our view reflects a lower-than-expected acquisition price for LO (~$67) and accretion/ returns for RAI that would be muted by diseconomies of scale on synergies and $2.7B in taxes on divestitures.
Top Diversified Bank Stocks To Buy Right Now: Twitter (TWTR)
Instantly connect to what's most important to you. Follow your friends, experts, favorite celebrities, and breaking news. TechCrunch is a leading technology media property, dedicated to obsessively profiling startups, reviewing new Internet products, and breaking ... Advisors' Opinion:- [By WWW.DAILYFINANCE.COM]
James Steidl/Shutterstock I am sure you have heard "It's not what you know, but who you know" many times. This is an excuse as to why someone else might be more successful than we are. However, as with most adages, a grain of truth lurks inside. Much of your business and financial success will be determined by your network -- not just who you know, but much more importantly who knows you. All of this boils down to your network -- people and businesses that support you and your business, and vice versa. Many people mistakenly believe that quantity strengthens your network, but quality is more important. For example, I have know person who can get me in front of thousands of qualified prospects with his endorsement. His solitary efforts could be more valuable than 500 weak ones. With the advent of social media, there is a huge myth that "friends" or "followers" equate to your network. The person I mentioned above is not even a social media friend, and yet that relationship could be worth huge money to my company. Social media (such as Facebook (FB), Twitter (TWTR), LinkedIn (LNKD), Google Groups (GOOG) and Pinterest) is just one small part of a solid network. There's Gold Out There Social media is a modern gold rush. Some people have made a fortune finding gold and utilizing social media. However, bigger fortunes were created selling all the stuff to help you find your mineral or virtual fortune. You should spend some time on selected social media outlets because there is no doubt that some good things can come from social media involvement. I know many people who have landed a job or gotten great leads from their social media accounts. Unfortunately, many of those same people totally ignore their non-social media networks. Anywhere you go and almost everything you do can be a part of your network. Make a list of the top five places you visit every month. Your list could look like this: Supermarkets and other retailers. Gym (build your body and your conta
- [By Howard Gold]
Wall Street is all a-twitter over the initial public offering of Twitter (TWTR), the microblogging site which started trading Thursday.
The shares opened at an astonishing $45.10 a share Thursday. The IPO was priced way above initial indications at $26 a share, raising $1.8 billion for the seven-year-old company. The offering was massively oversubscribed, with buying interest at maybe ten times the number of shares.
Best Managed Healthcare Stocks To Invest In 2014: Salient MLP And Energy Infrastructure Fund (SMF)
Salient MLP and Energy Infrastructure Fund (the Fund), is an organized, non-diversified, closed-end management investment company. Its investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions (Distributions) to its shareholders. The Fund seeks to provide its shareholders with a tax-efficient vehicle to invest in a portfolio of energy infrastructure companies that own midstream and other energy assets. The Fund will invest at least 80% of its total assets in securities of companies in the Midstream/Energy Sector, consisting of Midstream MLPs, Midstream Companies, Other MLPs and Other Energy Companies. It will invest in equity securities, such as common units, preferred units, subordinated units, general partner interests, common shares, preferred shares and convertible securities in MLPs, Midstream Companies and Other Energy Companies. The Fund is managed by Salient Capital Advisors, LLC. Advisors' Opinion:- [By Eric Lam]
Semafo (SMF) jumped 4.8 percent to C$2.60 and Iamgold gained 2.1 percent to C$4.20 as 21 of 24 members of the S&P/TSX Gold Index increased. Gold rose from a five-month low as investors weighed the outlook for reduced U.S. stimulus as early as next week against speculation physical demand may increase at lower prices. Gold for February delivery advanced 0.6 percent in New York.
Best Managed Healthcare Stocks To Invest In 2014: Hi Crush Partners LP (HCLP)
Hi Crush Partners LP, formerly Hi-Crush Partners LP, is a domestic producer of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The Company reserves consist of Northern White sand, a resource existing in Wisconsin and limited portions of the upper Midwest region of the United States. It owns, operates and develops sand reserves and related excavation and processing facilities and will seek to acquire or develop additional facilities. The Company's 561-acre facility with integrated rail infrastructure, located near Wyeville, Wisconsin, enables it to process and deliver approximately 1,600,000 tons of frac sand per year. In June 2013, Hi Crush Partners LP announced the completion of its acquisition of D&I Silica, LLC (D&I).
The Company�� frac sand production is sold to investment grade-rated pressure pumping service providers under long-term, contracts that require its customers to pay a specified price for a specified volume of frac sand each month. The Company owns and operates the Wyeville facility, which is located in Monroe County, Wisconsin and, as of December 31, 2011, contained 48.4 million tons of proven recoverable sand reserves of mesh sizes it has contracted to sell. From the Wyeville in-service date to March 31, 2012, it had processed and sold 555,250 tons of frac sand.
Advisors' Opinion:- [By John Udovich]
Yesterday, small cap fracking stock CARBO Ceramics Inc (NYSE: CRR) surged 28.32% after reporting earnings while fracking peer U.S. Silica Holdings Inc (NYSE: SLCA) jumped 9.50% and Hi-Crush Partners LP (NYSE: HCLP) rose 3.20%���no doubt on positive sentiment. However, are investors missing anything with CARBO Ceramics and�is it too late to get in on the action there?
- [By Dan Burrows]
It sounds like a soft-drink company, but Hi-Crush Partners (HCLP) is racking up profits through the revolution in oil extraction.
This tiny company with a market cap of just $917 million makes the sand used in fracking — and as anyone in an oil-boom state like North Dakota can tell you, business is good.
- [By Robert Rapier]
Rounding out the top five were�Hi-Crush Partners�(NYSE: HCLP), another supplier of fracking sand (+71 percent),�EQT Midstream Partners�(NYSE: EQM), a midstream provider in the Appalachian Basin (+66.5 percent), and�Valero Energy Partners�(NYSE:VLP) (+61.5 percent), which consists of midstream assets dropped down from the refiner�Valero Energy�(NYSE:VLO).
- [By Robert Rapier]
The fracking revolution has created enormous opportunities for Master Limited Partnerships (MLPs) across the oil and gas industry. Upstream MLPs like�BreitBurn Energy Partners�(NASDAQ: BBEP) and�Legacy Reserves�(NASDAQ: LGCY) produced the oil and gas. There was a huge new requirement for sand in the fracking operations, and this encouraged new MLPs like�Emerge Energy Services�(NYSE: EMES) and�Hi-Crush Partners�(NYSE:HCLP) — both of which have more than doubled in price over the past 12 months. Fracking also requires large volumes of water, which�Cypress Energy Partners�(NYSE: CELP) provides.
Best Managed Healthcare Stocks To Invest In 2014: Oracle Corporation(ORCL)
Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.
Advisors' Opinion:- [By Isaac Pino, CPA]
The first interesting story was at Oracle (NYSE: ORCL ) . Larry Ellison wanted us to create in his first building a paninoteca, which is like a little Italian sandwich shop that you would find in Milan.
- [By Ben Levisohn]
With 31% of the S&P 500 market cap reported, aggregate earnings are tracking 4.5% ahead of expectations. Financials have had strong results, on net, with beats from both [Bank of America and JPMorgan Chase] (both in our portfolio). Exfinancials, the earnings upside has been 4.0%, driven in large part by technology ([Microsoft, Oracle (ORCL) (December), and�SanDisk (SNDK)], among others). Our view is the recent market sell-off will abate as we doubt investors will worry about a real corporate earnings decline, something we think is required for a material market decline.
- [By Alex Planes]
Another business-oriented computing leader begins
Oracle (NYSE: ORCL ) also began its life on the same date as its longtime peer IBM, as it was founded on June 16, 1977, as Software Development Laboratories. In fact, IBM has a great deal to do with Larry Ellison's decision to create the company that would grow into one of IBM's greatest challengers in software-focused business services. A research paper published in IBM's Journal of Research and Development during the mid-1970s clued Ellison into the principles of relational database management, which remains the core of Oracle's business today. IBM didn't see the value in commercializing the concept, and their loss became Ellison and Oracle's enduring gain -- Oracle has since grown to become the second-largest software company in the world, worth two-thirds of what IBM is today. - [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, enterprise-software giant Oracle (NYSE: ORCL ) has earned a respected four-star ranking.
Best Managed Healthcare Stocks To Invest In 2014: Basilea Pharmaceutica AG (BSLN)
Basilea Pharmaceutica AG is a Switzerland-based company engaged in the research, development and commercialization of pharmaceutical products. The Company focuses on pharmaceutical products in the therapeutic areas of bacterial infections, fungal infections and oncology. The Company has a range of drugs to treat drug-resistant bacterial infections, systemic fungal infections and drug-resistant tumors. The Company�� anti-infectives, including isavuconazole and ceftobiprole are in late-stage clinical development, while the novel antibiotic, BAL30072 and the oncology compound, BAL101553 are in clinical phase I. The Company�� subsidiaries include Basilea Pharmaceutica China Ltd., Basilea Pharmaceuticals A/S, Basilea Pharma SAS, Basilea Pharmaceutica Deutschland GmbH, Basilea Pharmaceutica International Ltd., BPh Investitionen Ltd., Basilea Medical Ltd. and Basilea Pharmaceuticals Ltd. Advisors' Opinion:- [By Corinne Gretler]
Basilea Pharmaceutica AG (BSLN) increased 2.1 percent to 107.10 francs. The Swiss drug developer said the U.S. Food and Drug Administration granted orphan-drug designation to its isavuconazole for the treatment of zygomycosis, a life-threatening fungal infection.
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