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UTL | Unitil Corporation | Utilities | Power Generation | https://www.nasdaq.com/articles/safest-high-yield-electric-utilities-2009-10-09 | 2009-10-09 11:48:00 | Markets|PNW|DTE|HE | If you think "widow and orphan" utility stocks are boring, then you've never heard of this one.It's an electric utility that has increased its dividend each year for the past 20 years. Not only does it offer its shareholders an above-average yield, it also has outperformed its peers in the toughest economic environment in decades. That's pretty far from "boring" these days. In fact, this may be the most exciting company serious income investors could add to their portfolios.The nation needs power in good times and bad, and that's one reason power companies tend to be reliable, resilient investments. They don't offer much growth, but they compensate for that with strong dividend yields. And there are capital gains to be had: Utilities' prices tend to trend upward over the long term.That's a combination income investors like. And with those factors in mind, here's the one utility they should like the most right now, the one that outperforms its competitors.How did I find this winner? By examining the nation's utilities and crossing off any company that didn't meet my standards.I started with the critical premise that all income investors begin with: Show me the money. Below is a list of electric utilities that yield above 6%. It's best to take dividends one step further. Don't stop with the yield -- take a look at how easy it is for the company to meet its dividend payment. In the chart below, the third column shows each utilities payout ratio. This is calculated using the companies' operating income and dividend payment from the most-recent quarter. If you like, you can put the payout ratio in the blank in this sentence: "This company paid out ____ of its operating earnings in dividends."Company (Ticker) YieldPayout RatioPepco Holdings ([POM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=POM&selected=POM)) )7.5%47.2%Empire District Elec. ([EDE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EDE&selected=EDE)) )7.1%54.5%Hawaiian Elec. ([HE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HE&selected=HE)) )6.8%83.6%UIL Hldgs. Corp. ([UIL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UIL&selected=UIL)) )6.6%35.3%Pinnacle West ([PNW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PNW&selected=PNW)) )6.5%32.4%Progress Energy ([PGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PGN&selected=PGN)) )6.5%45.9%Unitil Corp. ([UTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTL&selected=UTL)) )6.2%66.6%Westar Energy ([WR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WR&selected=WR)) )6.2%34.5%DTE Energy ([DTE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DTE&selected=DTE)) )6.2%40.6%It doesn't look like any of these utilities is up against the wall and in the untenable position of being forced to cut its dividend. (Hawaiian Electric may be a little too close for comfort for some conservative investors.) Also keep in mind that companies with low payout ratios have more breathing room and may be able to increase their dividends in the future.Dividend safety is only part of the story, though. Defensive stocks should move up with the market and also demonstrate resilience during downturns. The past year has been a stress test for all stocks. Let's see which utilities passed.Track RecordThe total return of the S&P during the past three years is -15.4%. We need companies that not only beat the S&P but also posted positive total returns. After all, what good is a 6% dividend yield if the underlying security that produced it loses half its value? When I applied those criteria to our list, two utilities remained in our competition.Company (Ticker)3-Year Return5-Year ReturnProgress Energy ([PGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PGN&selected=PGN)) )+2.2%+22.2%Unitil Corp. ([UTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTL&selected=UTL)) )+9.1%+8.9%Progress Energy and Unitil are the only two high-yielding utilities that managed a gain during the past three years, an impressive feat considering the 2008 bear market.Two things give Progress the upper hand.First, it has a better dividend coverage ratio, meaning it's less likely to cut its dividend and has more room to raise it. In fact, it's the only company out of the original eight that could cover its dividend with its net income.Given this, it might not surprise you to learn that Progress has an impressive 20-year streak of annual dividend increases. Second, Progress Energy's five-year total return beats out Unitil by an impressive 14 percentage points. Tack on the higher yield, and investors can buy a stock that give them a bigger paycheck and one likely to continue to outperform its peers.Recent news points to a bright future. Progress will be allowed to charge higher rates in Florida in January. This will be a significant revenue booster, as more than half its 3.1 million customers are in Florida.Progress has outperformed its peers in tough economic times and has a track record of increasing dividends. Investors looking for a safe, reliable 6.5% yield could consider adding Progress to their portfolios. [Image](http://web.streetauthority.com/FB-sig.gif) Francisco E. BermeaStaff WriterStreetAuthority © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | The Safest High-Yield Electric Utilities | News | Street Authority | Unknown | 0.0004 | 21.8998 | 22.2574 | 22.6535 | 22.846 | 22.8816 | 22.8816 | 22.885 | 22.9251 | 22.8694 | 22.8612 | 22.8612 | 22.8612 | 22.8677 | 22.9235 | 22.8674 | 23.0707 | 22.5042 | 19.9395 |
HE | Hawaiian Electric Industries, Inc. | Utilities | Electric Utilities: Central | https://www.nasdaq.com/articles/safest-high-yield-electric-utilities-2009-10-09 | 2009-10-09 11:48:00 | UTL|Markets|PNW|DTE | If you think "widow and orphan" utility stocks are boring, then you've never heard of this one.It's an electric utility that has increased its dividend each year for the past 20 years. Not only does it offer its shareholders an above-average yield, it also has outperformed its peers in the toughest economic environment in decades. That's pretty far from "boring" these days. In fact, this may be the most exciting company serious income investors could add to their portfolios.The nation needs power in good times and bad, and that's one reason power companies tend to be reliable, resilient investments. They don't offer much growth, but they compensate for that with strong dividend yields. And there are capital gains to be had: Utilities' prices tend to trend upward over the long term.That's a combination income investors like. And with those factors in mind, here's the one utility they should like the most right now, the one that outperforms its competitors.How did I find this winner? By examining the nation's utilities and crossing off any company that didn't meet my standards.I started with the critical premise that all income investors begin with: Show me the money. Below is a list of electric utilities that yield above 6%. It's best to take dividends one step further. Don't stop with the yield -- take a look at how easy it is for the company to meet its dividend payment. In the chart below, the third column shows each utilities payout ratio. This is calculated using the companies' operating income and dividend payment from the most-recent quarter. If you like, you can put the payout ratio in the blank in this sentence: "This company paid out ____ of its operating earnings in dividends."Company (Ticker) YieldPayout RatioPepco Holdings ([POM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=POM&selected=POM)) )7.5%47.2%Empire District Elec. ([EDE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EDE&selected=EDE)) )7.1%54.5%Hawaiian Elec. ([HE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HE&selected=HE)) )6.8%83.6%UIL Hldgs. Corp. ([UIL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UIL&selected=UIL)) )6.6%35.3%Pinnacle West ([PNW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PNW&selected=PNW)) )6.5%32.4%Progress Energy ([PGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PGN&selected=PGN)) )6.5%45.9%Unitil Corp. ([UTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTL&selected=UTL)) )6.2%66.6%Westar Energy ([WR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WR&selected=WR)) )6.2%34.5%DTE Energy ([DTE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DTE&selected=DTE)) )6.2%40.6%It doesn't look like any of these utilities is up against the wall and in the untenable position of being forced to cut its dividend. (Hawaiian Electric may be a little too close for comfort for some conservative investors.) Also keep in mind that companies with low payout ratios have more breathing room and may be able to increase their dividends in the future.Dividend safety is only part of the story, though. Defensive stocks should move up with the market and also demonstrate resilience during downturns. The past year has been a stress test for all stocks. Let's see which utilities passed.Track RecordThe total return of the S&P during the past three years is -15.4%. We need companies that not only beat the S&P but also posted positive total returns. After all, what good is a 6% dividend yield if the underlying security that produced it loses half its value? When I applied those criteria to our list, two utilities remained in our competition.Company (Ticker)3-Year Return5-Year ReturnProgress Energy ([PGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PGN&selected=PGN)) )+2.2%+22.2%Unitil Corp. ([UTL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UTL&selected=UTL)) )+9.1%+8.9%Progress Energy and Unitil are the only two high-yielding utilities that managed a gain during the past three years, an impressive feat considering the 2008 bear market.Two things give Progress the upper hand.First, it has a better dividend coverage ratio, meaning it's less likely to cut its dividend and has more room to raise it. In fact, it's the only company out of the original eight that could cover its dividend with its net income.Given this, it might not surprise you to learn that Progress has an impressive 20-year streak of annual dividend increases. Second, Progress Energy's five-year total return beats out Unitil by an impressive 14 percentage points. Tack on the higher yield, and investors can buy a stock that give them a bigger paycheck and one likely to continue to outperform its peers.Recent news points to a bright future. Progress will be allowed to charge higher rates in Florida in January. This will be a significant revenue booster, as more than half its 3.1 million customers are in Florida.Progress has outperformed its peers in tough economic times and has a track record of increasing dividends. Investors looking for a safe, reliable 6.5% yield could consider adding Progress to their portfolios. [Image](http://web.streetauthority.com/FB-sig.gif) Francisco E. BermeaStaff WriterStreetAuthority © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | The Safest High-Yield Electric Utilities | News | Street Authority | Unknown | 0.0004 | 18.2595 | 18.5738 | 18.639 | 18.779 | 18.7514 | 18.7282 | 18.7365 | 18.8138 | 18.771 | 19.0138 | 19.0138 | 19.0138 | 19.0152 | 18.8444 | 18.96 | 18.8013 | 23.798 | 19.1804 |
MG | Mistras Group, Inc. | Consumer Discretionary | Military/Government/Technical | https://www.nasdaq.com/articles/mistras-group-has-another-go-ipo-2009-10-09 | 2009-10-09 11:49:00 | ERJ|Markets|BP|BAC|XOM|GE|PFE|VLO|JPM|CVX|AEP | [Abbi Adest](http://seekingalpha.com/by/author/abbi-adest/) Mistras Group ([MG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MG&selected=MG)) ), a company which provides non-disruptive infrastructure testing to the energy market, is expected to price its IPO this week. This is the company's second try at an IPO. The previous attempt was sunk by the downturn in the markets two years ago.Business Overview (from [prospectus](http://www.sec.gov/Archives/edgar/data/1436126/000095012309045063/y02145a5sv1za.htm) ) We are a leading global provider of technology-enabled asset protection solutions used to evaluate the structural integrity of critical energy, industrial and public infrastructure. We combine industry-leading products and technologies, expertise in mechanical integrity (([MI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MI&selected=MI)) )) and non-destructive testing (([NDT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NDT&selected=NDT)) )) services and proprietary data analysis software to deliver a comprehensive portfolio of customized solutions, ranging from routine inspections to complex, plant-wide asset integrity assessments and management. These mission critical solutions enhance our customers' ability to extend the useful life of their assets, increase productivity, minimize repair costs, comply with governmental safety and environmental regulations, manage risk and avoid catastrophic disasters. Given the role our services play in ensuring the safe and efficient operation of infrastructure, we have historically provided a majority of our services to our customers on a regular, recurring basis. We serve a global customer base of companies with asset-intensive infrastructure, including companies in the oil and gas, fossil and nuclear power, public infrastructure, chemicals, aerospace and defense, transportation, primary metals and metalworking, pharmaceuticals and food processing industries. As of August 1, 2009, we had approximately 2,000 employees, including 29 Ph.D.'s and more than 100 other degreed engineers and highly-skilled, certified technicians, in 68 offices across 15 countries. We have established long-term relationships as a critical solutions provider to many leading companies, including American Electric Power ([AEP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AEP&selected=AEP)) ), Bayer, Bechtel, BP ([BP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BP&selected=BP)) ), Chevron ([CVX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CVX&selected=CVX)) ), Dow Chemical ([DOW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DOW&selected=DOW)) ), Duke Energy ([DUKE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DUKE&selected=DUKE)) ), DuPont ([DD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DD&selected=DD)) ), Embraer ([ERJ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ERJ&selected=ERJ)) ), ExxonMobil ([XOM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=XOM&selected=XOM)) ), First Energy, General Electric ([GE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GE&selected=GE)) ), Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ), Rio Tinto ([RTP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RTP&selected=RTP)) ), Alcan, Rolls Royce (RYCEY.OB), Shell (RDS.A), The Boeing Company and Valero ([VLO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VLO&selected=VLO)) ), and to various federal, state and local governmental infrastructure and defense authorities, including the departments of transportation of several states. Offering: 8.7 million shares at $14 - $16 per share. Net proceeds of approximately $89.8 million will be used general corporate purposes, including working capital and possible acquisitions.[JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM) [ CS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CS&selected=CS) [ BAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAC&selected=BAC) Financial Highlights:Revenues increased $56.9 million, or 37.3% [ from $152,268,000 to $209,133,000], for fiscal 2009 compared to fiscal 2008 as a result of growth in all our segments...Our gross profit increased $14.4 million, or 26.3% [from $54,831,000 to $69,266,000] , in fiscal 2009 compared to fiscal 2008...Our income from operations of $14.8 million for fiscal 2009 decreased $1.5 million, or 9.4% [from $16,358,000 to $14,825,000], compared to fiscal 2008...Our net income for fiscal 2009 of $5.5 million, or 2.6% of our revenues, was $2.0 million lower than our net income for fiscal 2008, which was $7.4 million, or 4.9% of revenues.Competitors:We operate in a highly competitive, but fragmented, market. Our primary competitors are divisions of large companies, and many of our other competitors are small companies, limited to a specific product or technology and focused on a niche market or geographic region. We believe that none of our competitors currently provides the full range of asset protection and NDT products, enterprise software and the traditional and advanced services solutions that we offer. Our major competitors with respect to NDT services include the Acuren division of Rockwood Service Corporation, SGS Group, the TCM division of Team, Inc. and APPLUS RTD, which is majority-owned by The Carlyle Group. Our major competitor with respect to our PCMS software is UltraPIPE, a division of Siemens, and to a lesser extent, Lloyd's Register Capstone, Inc. Our major competitors with respect to our ultrasonic products are GE Inspection Technologies and Olympus NDT. In the traditional NDT market, we believe the principal competitive factorsAdditional Resources: - [Company website](http://www.mistrasgroup.com/) - AP: ' [Mistras Group IPO set for Thursday](http://news.google.co.il/news/url?sa=t&ct2=en_il%2F0_0_s_0_0_t&usg=AFQjCNH9U4sSvmRfIExNyskEqosSYESLSA&sig2=geCahX_6kZ5GB-r-d6_LHw&cid=1446661807&ei=oDTMSqieN5HcjQeS3-lr&rt=STORY&vm=STANDARD&url=http%3A%2F%2Fwww.google.com%2Fhostednews%2Fap%2Farticle%2FALeqM5h4UGksWXV1IsLMdW_QtVmWRUgojwD9B5P7NO1) ' - BloggingStocks: ' [Mistras Group wants some IPO cash'](http://www.google.co.il/url?sa=t&source=web&ct=res&cd=4&url=http%3A%2F%2Fwww.bloggingstocks.com%2F2008%2F06%2F12%2Fmistras-group-wants-some-ipo-cash%2F&ei=jDTMStCSBsKz4QariZX4BQ&usg=AFQjCNHvcfsrK52XaXpySRdcNWVJgqIxFA&sig2=iIXkc5nOMeV9-XKlzOumUw) See also [Technicals: Crude Looks Like Its Trending Higher](http://seekingalpha.com/article/166637-technicals-crude-looks-like-its-trending-higher?source=nasdaq) on seekingalpha.com | Mistras Group Has Another Go at IPO | News | SeekingAlpha | Unknown | 0.0004 | 12.3471 | 12.3471 | 12.9014 | 12.6048 | 12.6212 | 12.6215 | 12.6 | 12.6315 | 12.7029 | 12.6735 | 12.6735 | 12.6735 | 12.685 | 12.7682 | 12.8303 | 12.9391 | 13.0015 | 12.2407 |
GNK | Genco Shipping & Trading Limited | Consumer Discretionary | Marine Transportation | https://www.nasdaq.com/articles/four-shippers-emerging-mire-2009-10-22 | 2009-10-22 02:42:00 | Markets|EGLE|NM|ESEA|DSX | ** [Andy Wang](http://www.philstockworld.com/wangsworld/) submits:** [Image](http://static.seekingalpha.com/uploads/2009/10/22/saupload_091019dsx_2d00_egle_2d00_tbsi_2d00_prgn2.png) By [Skymist](http://www.myhappytrading.com/members/Skymist/default.aspx) After a thrilling two-week rally in the stock market during early September, shippers began to fall. They had been enjoying a nice rally on the general premise of economic recovery, market stabilization, and rising materials prices. But suddenly on September 17th, the shipper sector broke, and leading names fell - plummeted, actually, at a much faster rate than the modest pullback in the general market would have implied. With shippers today generally on the rise again, it is worthwhile to look at the reasons for the **mid September breakdown.** What was the number one reason? I would have to say it was the Baltic Index, which quantifies the prices shippers get for new contracts. It had stabilized at near 2400 in early September, and then began a robust rise, only to suddenly stop short. It began falling, slowly at first, then accelerating. By the 17th it was clear that the BDI was tanking, and the shippers as a group followed. The timing of the movements of BDI seemed to be the key. A market advance which coincides with a BDI advance is a powerful motivator for the depressed shipping stocks. The "robust rise" of early September triggered the sector advance. Few sectors snowball as readily as the shippers. Within days, shippers were moving to recent highs, but the BDI reversal stopped the process entirely. **Of course, the negative press didn't help either.** The blogs were heavily negative on the shippers, pointing to the newly delivered ships and declaring that we need fewer ships, not more, in current economic conditions. Finally, Navios ([NM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NM&selected=NM)) ) picked that moment to float a new stock offering, diluting their stockholders. The market knows that new offerings are one of the traditional signs of an overbought stock - in a sense, it is the ultimate in "insider selling". **How does today's rising shipper sector compare to September 17th?** Well, the BDI is finally responding positively this time, passing 2800, rising 5 days in a row, and rising even faster than in early September. The chart also shows an even more key fact - the BDI is not only rising but is above its 200-day moving average; in mid-September at the time of the shipper retreat the BDI was well below its 200-day ma. No doubt, there is a lot of money on the sidelines which won't come back into the market until we have a rising BDI above its 200dma. That alone can explain a lot of the listless behavior of the shipper stocks in the past few months, but clearly the situation is different today. Sentiment is higher, with positive blog stories and upgrades. The sector is riding a more optimistic wave, and any key event could set off an upside stampede - a large earnings beat, a raised or reinstated dividend, or an acquisition. **The four stocks I am highlighting here are the key names I am watching.** Today, Diana Shipping ([DSX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DSX&selected=DSX)) ) became the first of the shippers to pull strongly above its Sept. 17 high. It was followed within minutes by Eagle Bulk Shipping ([EGLE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EGLE&selected=EGLE)) ). I note with some satisfaction that DryShips ([DRYS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DRYS&selected=DRYS)) ) is not a leader here - "satisfaction" because market karma dictates that those names issuing the most new stock should not be the first to benefit from a sector recovery, and indeed, that may be the case, DRYS being held back along with FreeSeas ([FREE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FREE&selected=FREE)) ), Navios Maritime Holdings ([NM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NM&selected=NM)) ), and others who resorted to dilution as a remedy. **TBS International ([TBSI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TBSI&selected=TBSI)) ) has an interesting chart.** See how the "stick" part of the candlesticks are long at the tops during the mid-Sept peak? This can be visualized as a price region in which there was heavy selling or shorting, each day forcing the price down after initial gains. The zone from 9.50 to about 9.85 represents a region which, once traversed, can lead to increased short-covering. TBSI has a short ratio of over 3.5, and the fuel which is the short positions could potentially power the stock higher very quickly - perhaps another dollar in just a couple of days. Given continued BDI strength, I feel we could see TBSI at $11 by early next week. The options are cheap, too. **Paragon Shipping ([PRGN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PRGN&selected=PRGN)) ) is one of the best "sleeper" plays in the shipper segment.** As the leaders pull higher, we can expect to see this tiny but well run company move up in price quickly and quietly. Yes, they are still paying a dividend. **If you want to participate in the shipper rally, take your eyes off DRYS, and start watching the new leaders.** Good luck!Disclosure: I am long TBSI, GNK, EGLE, PRGN, and ESEA.See also [Wabtec Corporation Q3 2009 Earnings Call Transcript](http://seekingalpha.com/article/170016-wabtec-corporation-q3-2009-earnings-call-transcript?source=nasdaq) on seekingalpha.com | Four Shippers Emerging from the Mire | News | SeekingAlpha | Unknown | 0.0002 | 20.8032 | 21.8605 | 22.6642 | 22.7856 | 22.7856 | 22.7856 | 22.7856 | 22.7856 | 22.7856 | 22.8215 | 22.6351 | 23.4916 | 23.8206 | 22.5641 | 22.5332 | 22.5305 | 19.8162 | 25.3433 |
BB | BlackBerry Limited | Technology | Computer Software: Prepackaged Software | https://www.nasdaq.com/articles/review-spains-fixed-line-and-broadband-market-2009-10-25 | 2009-10-25 12:39:00 | VOD|Markets|TEF | It's impressive to see how the Spanish industry has changed in such a short period and, as written before about [the net adds battle](http://consultantvalueadded.com/2009/10/09/is-it-possible-to-win-the-broadband-battle-in-spain/) , it's amazing to see the huge difficulties that all the operators have to beat the incumbent, Telefónica ([TEF](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TEF&selected=TEF)) ), and increase their revenues' share of the market. It's a market where fixed lines represent the majority of the value although the source of revenue growth lies in broadband. Some interesting figures: - Fixed market revenues account for ~3€ Billion, of which Fixed line revenues comprise 55%. Yet the fixed line contribution is declining by -6.7% GAGR from 2007-2009. - Broadband fuels fixed revenue growth by stimulating line numbers and revenues by over 10% CAGR in the last 3 years. - Future broadband growth potential remains positive with the possibility of providing BB service to the 3.9 Million PC-equipped Spanish households with only dial-up or no internet access. - Decreases in Telefónica's wholesale prices resulting from regulation, has allowed for the faster proliferation of higher speed connections by making them more affordable to end customer. Wholesale price reductions have reached up to 74% in some cases, yet have not fully been translated into customer savings. The price decreases have thus allowed operators to capitalize on revenue generation through cheaper offers and better margins from lower costs. We will soon deliver our yearly broker report on the telecommunications situation in Spain, but I wanted to publish an executive summary of it and highlight some interesting facts and insights with our blog readers so that you can clearly understand the fixed and broadband market situation: **Fact 1. The Spanish fixed market is in decline. While broadband is the only growth source it still falls behind Fixed-lines as the main contributor of revenues. ** - The economic downturn appears to have impacted the fixed line market. Previously growing at 10% from '07-08 then slowing abruptly to 0.2% from `08-´09. - Broadband continues to grow and while the ceiling has not yet been hit, there are initial signs of slowdown. - The Pay TV market has been stagnant for the last 2 years and has suffered a significant revenue erosion of ~30 million € since 2008. **Fact 2. Over the last three years, market players have undergone consolidation in an effort to challenge Telefónica's dominance. Unfortunately for the challengers, Telefónica is far from being even worried. ** - Since 2007, Ono acquired Auna, Orange bought Ya.com and Vodafone ([VOD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VOD&selected=VOD)) ) took over Tele2. - Ono and Jazztel may represent residual opportunities for further buy-outs although current valuations are too high for any player to consider a potential merge or acquisition. **Fact 3. The Spanish market is characterized by an increasing appetite for bundled offers and higher speed Broadband ([BB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BB&selected=BB)) ) connections. ** - Currently 68% of the BB market includes bundling. While players such as Orange already offer Pay TV in their bundles, others like Vodafone may find it increasingly difficult to compete without a pay TV platform. - The majority of BB connections lie in the 3Mb to 10Mb interval, with the highest concentration of offers at 6Mb. Telefónica consistently has a premium over other competitors offers, Orange has some of the cheapest offers. - The Spanish Telecom Regulator is supporting connection speed increases through wholesale price reductions. Additionally, it is encouraging further price reductions in the market by allowing Telefónica to offer naked DSL. **Fact 4. Despite aggressive pricing efforts by competitors Telefónica still enjoys a comfortable leadership position in the fixed-line market** - Orange still holds only a minute market share (1.8%) of active fixed lines. Over the last two years, Orange has succeeded in growing its share of lines but at the expense of loosing revenue share. - Telefónica has lost more ground in the highly competitive residential than in the business one. Orange has a better position in the residential segment where a strong price war is taking place. **Fact 5. Telefónica has managed to hold on to its broadband market share. Vodafone and Jazztel are capturing market share from Orange and Ono** - Orange´s position may be the weakest of the market, having lost broadband customers (~97,000 in 2008) despite the fact the market is growing. - Vodafone and Jazztel have been the recent winners in the last years, with increases of a 159% and a 78% (respectively) of net adds as % of their customer base in 2007. **Fact 6. The Pay TV market is stagnate, but Orange has managed to grow its customer base to 2.5% representing a ~155% CAGR from ´07-´09** - Due to the current unavailability of Pay TDT services (e.g., Gol TV - dedicated football channel), this year may present an opportunity for capturing new Pay TV customers before the Pay TDT threat appears. - Telefonic'a imagenio will end with near 680K subscribers, a number that has been nearly flat in the last 2 years. However, Telefónica reported in its latest investors meeting in October a growth up to 1.2M clients in 2012. **Fact 7. Telefónica's dominant position has a lot to do with customer satisfaction. Telefónica has the lowest complaint ratios in the fixed market and has managed to remain the leader despite having the most expensive offers. This is suggests that the quality of its service provisioning is positively valued by customers** - In 2008, Orange and Ya.com had the highest complaint ratios on broadband service provisioning. Their performance has since worsened during 2009. - Additionally, Orange and Ya.com have the poorest performance rating among competitors for customers service satisfaction. - Vodafone, Jazztel, Ono and rest of regional cable operators have similar customer satisfaction rates, being the first two, the highest rated in terms of incidence calls per 10K customers. You can find a detailed market assessment [here](http://consultantvalueadded.com/2009/10/25/fixed-line-bb-market-review-spain-2009) .See also [Doesn't the House Health Bill Fail the President's $900 Billion Test?](http://seekingalpha.com/article/170450-doesnt-the-house-health-bill-fail-the-presidents-900-billion-test?source=nasdaq) on seekingalpha.com | Review of Spain's Fixed Line and Broadband Market | News | SeekingAlpha | Unknown | 0.0004 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
GCI | Gannett Co., Inc. | Consumer Discretionary | Newspapers/Magazines | https://www.nasdaq.com/articles/why-newspapers-arent-getting-their-share-increased-online-ad-spending-2009-10-27 | 2009-10-27 10:39:00 | NYT|Markets | Newspaper online advertising has not benefited greatly from the recent upswing in online ad spending, [according to the New York Times](http://www.nytimes.com/2009/10/26/business/media/26adco.html?_r=1&ref=business) and most of the recent newspaper company quarterly results. This is no surprise because most newspaper websites [sell space](http://publishing2.com/2007/07/26/online-publishers-need-to-stop-selling-space/) for commodity advertising - display ads and classifieds - and thus are hard pressed to compete with ad networks that specialize in selling commodity ad space by the megaton (or giving it away for free, in the case of Craigslist).Back when newspapers were the only game in town for ad space, they could charge whatever they wanted. Now the web has near infinite ad space, and newspapers find themselves playing the wrong game. They've got ad sales staff that specialize in commodity order fulfillment and not premium advertising solutions. So what distinguishes a premium ad solution from commodity ad space? It's a premium solution if not every site can deliver the value. Any site can slap a display ad on a page - that's what makes it a commodity. High-end brand publishers like newspapers really have only one way to distinguish themselves from every other web publisher on the planet - their ability to create high quality content that attracts a targeted, high quality audience.But… there are many sites that specialize in creating "good enough" content that can attract segments of that high quality audience, and then selling that audience at a much lower cost.But wait, you say, high-end brand publishers should be able to sell the ad next to their higher quality content at a higher price. Isn't that the whole principle behind premium publishing?Not when it comes to display advertising. Display advertising isn't more valuable when placed next to premium content because display advertising has so little value to begin with. In fact, display advertising creates so little consumer value that it actually subtracts value from high quality editorial content when placed next it. Ever see those belly fat ads on top tier news sites? Dancing Martians lowering your mortgage payments? Whiten your teeth? It's a total train wreck.In fact, many ad exchanges are focused on bundling and selling audiences in a way that exploits this commodization of display ads and effectively cuts out the value of the publisher. So what's a high-end brand publisher to do?The answer is to offer advertising solutions that give advertisers the opportunity to create real consumer value; the kind of value that complements and even enhances the value of high quality editorial content; the kind of value that high-end brand publishers specialize in creating.Many advertisers have sought this kind of premium value from high-end brand publishers, and most publishers have responded with customized solutions like the classic "microsite" or one-off customized ads. But that too can be a losing proposition. Case in point from Mercedes:The problem with these solutions is they don't scale - they are expensive for publishers to deliver, and they are expensive for advertisers to buy. The result is most advertisers are lured back by the siren song of commodity ad network cost efficiency. So while high-end brand publishers do well for big splashy launches, they can't compete when advertisers go into the post-launch mode of consistent, continuous, high ROI value creation.What high-end publishers need is a way for advertisers to create premium value for consumers that scales and can deliver a consistent, continuous ROI that justifies a premium over commodity ad networks. What would advertisers be willing to pay a consistent premium for? The holy grail of every advertiser - to become media, i.e. to create high quality content that attracts and retains an audience of current and prospective customers. Advertisers would also pay a premium to align the value that they create for the consumer with the value that high-end brand publishers create for consumers - just like on a search results page, where the ads are as valuable as the "editorial" content.But if every high-end brand publisher tries to deliver such a solution by themselves, it won't scale for advertisers. The key is to scale across many high-end brand sites while still delivering the kind of premium value that commands premium pricing.That's the next generation of premium online advertising. More in my next post.See also [Earnings Season: The Car Is Shiny, But Look Under the Hood](http://seekingalpha.com/article/170851-earnings-season-the-car-is-shiny-but-look-under-the-hood?source=nasdaq) on seekingalpha.com | Why Newspapers Aren't Getting Their Share of Increased Online Ad Spending | News | SeekingAlpha | Unknown | 0.0005 | 13.6882 | 13.3112 | 13.0925 | 12.0891 | 11.9854 | 12.01 | 11.9718 | 11.948 | 11.7448 | 11.7533 | 11.7533 | 11.7533 | 10.7977 | 10.8814 | 10.3186 | 9.93064 | 11.3105 | 10.6291 |
CXW | CoreCivic, Inc. | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/four-long-ideas-two-short-ideas-latest-value-investing-congress-2009-10-29 | 2009-10-29 06:50:00 | ITB|Markets|O|IRDM|LH | ** [Kevin Berk](http://berk.typepad.com/bshaw/) submits:**Last week I attended the [Value Investing Congress](http://www.valueinvestingcongress.com/) in New York.The speakers were top notch and the presentations were very engaging.I enjoyed hearing the speakers discuss their investment processes.Lloyd Khaner's talk on turnarounds was very well done.Also, various presentations on the continued weak state of the housing market were very informative.Overall, the tone was pretty bearish on the economy and the markets.Many of the presenters professed concern about overvaluation but projected a sense of "the show must go on… so here are my stock picks." I agree that the markets feel stretched based on the woeful state of the consumer but some of the picks are worth watching.Some longs do go up when markets go down.Even better is to pick up great stocks on sale if the market does turn down again.My favorites of the conference were:**Small Cap Long Ideas** - Risky companies** Iridium Communications Inc. ([IRDM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IRDM&selected=IRDM)) )** - Whitney Tilson and Glenn Tongue presented an interesting pitch for Iridium (yes, the formerly bankrupt satellite phone company that used to be a punchline!).According to Whitney and Glenn, Iridium has an unrivaled set of assets (satellites and services).Iridium reaches 90+% of the globe which has no cell towers (e.g. ocean, dessert, mountains).The company was purchased by a SPAC a year ago on favorable terms.Non-voice data services are growing dramatically and the voice business is growing nicely.The bear case on IRDM is that they plan to launch a new constellation of satellites starting in 2014.Whitney and Glenn believe that IRDM might be about to launch it without borrowing funds. **Core-Mark ([CORE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CORE&selected=CORE)) )** - Kian Ghazi provided a detailed bull case for Core Mark, a convenience store distribution player.CORE is the number two operator behind Mclane (a Berkshire company).Kian claims that while distribution may not be a sexy business, it can be a defensible one if the following conditions are met:high route density for drop-offs, highly fragmented, high switching costs and small drops with lots of stops.In his opinion, CORE benefits from all of these.His bullish case for them rests on an emerging part of their business:fresh food (prepared fruit cups, sandwiches, etc).This high margin, high growth business should more than offset the secular decline in low margin cigarette business which is a big part of CORE existing revenue. **Mid / Large Caps Long Ideas** - Safer, less risk of massive downside** Corrections Corp. of America ([CXW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CXW&selected=CXW)) )** - Bill Ackman sparked a rally in Corrections Corp. when he revealed he owned a 9+% stake (which hadn't been publicly disclosed yet).His pitch was funny and well thought out:CXW is largely an inexpensive, safe real estate play with extremely creditworthy tenants, secular growth and room for market share gains.He claimed that private prisons operate more effectively than public ones on many levels and that the trend will be towards privatization (especially for new prisons).The stock probably won't double but he thinks it has upside to $40-50+. **Laboratory Corp. of America Holdings ([LH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LH&selected=LH)) )** - Zeke Ashton laid out the case for Labcorp, the number two provider of laboratory testing behind Quest Diagnostics.The growth rate of the company is high, the industry pretty defensible.The only issue is a biggie though - healthcare reform.The lab testing business has been bandied about as a rich target for cost cutting, but Zeke thinks that the concerns here are overblown.There may even be a scenario in which LH and Quest benefit from expanded coverage and testing. **Shorts** - Proceed with caution** iShares Dow Jones U.S. Home Construction ([ITB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ITB&selected=ITB)) )** - Whitney Tilson presented the housing stock ETF as a short based on an updated version of his voluminous housing "head fake" presentation.It lays out a compelling story that housing has not yet bottomed because of shadow inventory (7 million homes in various stages of delinquency and foreclosure), option-ARM exposure peaking in 2011, a stretched consumer, removal of stimulus and the eventual rise in interest rates.His take was that there are more than enough homes for those that can afford to buy them and that the housing companies should basically build nothing for years. **Realty Income Corp. ([O](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=O&selected=O)) )** - Bill Ackman spoke briefly about shorting Realty Income - the "monthly dividend company". This is a company he has previously criticized for having risky tenants who have done sale-leaseback transactions with Realty Income.He expects that the company will have a radical valuation readjustment once the market realizes that the dividend is not safe.The company does a lot of shareholder marketing focusing on the dividend and if (when, according to Ackman) O sustains credit losses in its weak portfolio they will need to cut the dividend.Overall, the conference was very interesting.The slides from all the presentations were available after the conference as well. **Disclosure:**I do not have positions in any of the stocks mentioned in this article. See also [Best and Worst Performing S&P 500 Stocks Since Obama's Election Win](http://seekingalpha.com/article/171542-best-and-worst-performing-s-p-500-stocks-since-obama-s-election-win?source=nasdaq) on seekingalpha.com | Four Long Ideas, Two Short Ideas from the Latest Value Investing Congress | News | SeekingAlpha | Unknown | 0.0002 | 25.1555 | 25.6679 | 25.2816 | 24.622 | 24.622 | 24.622 | 24.622 | 24.622 | 24.6496 | 24.7917 | 24.6314 | 24.7547 | 24.6531 | 23.9414 | 23.9605 | 23.9614 | 25.1621 | 25.0186 |
HIMX | Himax Technologies, Inc. | Technology | Semiconductors | https://www.nasdaq.com/articles/two-bargain-small-caps-yielding-double-digits-2009-10-30 | 2009-10-30 01:50:00 | Markets | Cheap stocks aren't as plentiful as they were seven months ago.In some ways, of course, that's a good thing. No one likes it when the market craters. But even though prices have risen from their lows, that doesn't mean investors can't find bargains out there -- they're just tougher to spot.Today, we'll take a look for such bargains: Undervalued companies with the potential for big gains -- and the added benefit of a rich dividend yield.The first yardstick is price-to-earnings growth ratio, which is sometimes shortened to "PEG." This measurement helps evaluate companies to determine which are cheap relative to earnings and expected growth.PEG is calculated by dividing the price-to-earnings ratio and dividing it by projected annual earnings growth (expressed as a whole number). If a company with a P/E of 20 is project to see earnings growth of 10%, the PEG is 2.0.Higher PEGs typically indicate a stock is overvalued; lower PEGs may mean the company is undervalued. I sought stocks with a PEG of less than 1.5. This resulted in 1,198 matches. To narrow the field, I screened out companies with high price-to-sales ratios. The P/S ratio is calculated by dividing the stock price it by trailing 12-month revenue per share. This metric helps investors understand the value of stock relative to revenue. Here again, lower values can indicate undervaluation.And while the picture this ratio paints can be incomplete, cheap revenue is better than pricey revenue. To find a discount, investors should pay less than $1 for every $1 in revenue. In this screen, I eliminated stocks with a P/S higher than 1.This left us with 535 candidates.The earnings multiple or P/E ratio, if you prefer, needs no lengthy explanation. It's simply the current share price divided by the company's trailing 12-month earnings per share. In a value-oriented screen, lower is better. I eliminated companies selling for more than 15 times earnings, which whittled the screen to 323 potential investments.Next I took a look the price-to-book ratio. Calculated as the share price divided by net assets, this ratio shows what a company is worth if broken up into its tangible parts. A P/B ratio of 1.0 means that the company's net assets are worth exactly what you're paying for them. (This values the actual business at zero.) Higher P/B values, that is, greater than 1.0, assign a dollar value to the company's underlying business. Most companies trade at a multiple to "book value." Anything less than 1.0 means you're buying the assets on sale and getting the business for free. For this screen, I used a P/B of 2.0 to weed out expensive companies. This left 228 matches.Price-to-free cash flow, sometimes painfully shortened to P/FCF, compares a company's market cap with the amount of free cash it generates. If a $100 million company has $5 million in free cash flow, for example, it would have a P/FCF of 20.With this metric, higher numbers indicate the company's free cash is relatively more expensive. In a value screen, of course, we're not looking for anything expensive. I used the value 10 to remove the pricier stocks from the list, which, after applying our criteria so far, still had 143 companies.Only two of those companies yield more than 6%.Even better, they actually pay much more. **Company (Ticker)****Yield****PEG Ratio****P/S****P/E****P/B****P/FCF****Market Cap** Penn Virginia Holdings([PVG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PVG&selected=PVG)) )11.4%1.10.76.62.07.8$507MHimax Technologies (Nasdaq: HIMX)10.3%0.80.813.11.35.1$534M [Image](http://web.streetauthority.com/AH-sig2.gif) Anthony HaddadStaff WriterStreetAuthorityDisclosure: Anthony Haddad does not own shares of any security mentioned in this article. © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | Two Bargain Small Caps Yielding Double Digits | News | Street Authority | Unknown | 0.0001 | 2.97803 | 2.89337 | 2.91607 | 2.76175 | 2.7608 | 2.76129 | 2.76145 | 2.76129 | 2.76068 | 2.76068 | 2.73788 | 2.70814 | 2.62176 | 2.58831 | 2.58785 | 2.53989 | 2.42225 | 2.59302 |
LGND | Ligand Pharmaceuticals Incorporated | Health Care | Biotechnology: Pharmaceutical Preparations | https://www.nasdaq.com/articles/week-biotech-more-treats-tricks-2009-11-01 | 2009-11-01 03:50:00 | SNY|Markets|GSK|PFE|MBRX | ** [The Burrill Report](http://www.burrillreport.com/) submits:**The last week of October was appropriately marked by treats and tricks. The stock market gyrated from investor ebullience over numbers showing a 3.5 percent growth of the U.S. GDP in the third quarter of 2009, to investor dismay over worries that a drop in consumer spending signals an unsustainable recovery. Meanwhile, life science companies were busy raising money and striking deals. Durham, North Carolina-based Aldagen ([ALDH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALDH&selected=ALDH)) ) took its place in a growing queue of companies hoping to go public in the coming months as the IPO window begins to open. The company, which develops regenerative cell therapies, had initially filed to go public in May of 2008 but withdrew those plans last October when the stock market crashed.Now that the markets have strengthened, the company hopes to raise an estimated $80.5 million in an initial public offering to fund a phase 3 trial of its most advanced therapy for the treatment of critical limb ischemia, which can happen when a limb becomes damaged due to lack of blood flow. Aldagen also has a drug in a pivotal phase 3 trial for improving umbilical cord blood transplants used to treat inherited metabolic diseases in pediatric patients. Aldagen plans to list the shares on the NASDAQ Global Market under the symbol ALDH. The world market for IPOs got a boost with the inauguration of the ChiNext exchange, a new Chinese stock exchange for small, high-tech enterprises, which started trading on Friday. All of the 28 listed companies, which included six involved in biotech and pharmaceuticals, soared in price on the first day of trading.In the biggest deal of the week, Medivation ([MDVN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MDVN&selected=MDVN)) ) will collaborate with Astellas Pharma ([ALPMF.PK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ALPMF.PK&selected=ALPMF.PK)) ) to develop and commercialize MDV3100, a new generation of oral anti-androgen that is currently being evaluated in a phase 3 trial for the treatment of prostate cancer. In a deal similar to last year's partnership between Medivation and Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) for Dimebon in Alzheimer's disease, the deal involves a significant amount of cash upfront and the option to co-promote the drug in the United States. Astellas will pay Medivation $110 million upfront and milestone payments up to $335 million as the candidate reaches certain development and regulatory milestones plus up to an additional $320 million in commercial milestone payments. The companies will collaborate on a comprehensive development program that will include additional studies to develop MDV3100 for both late- and early-stage prostate cancer. If and when the drug is approved, the companies will jointly commercialize MDV3100 in the United States, sharing equally in all U.S. development costs, commercialization costs, and profits. Astellas will have responsibility for developing and commercializing MDV3100 outside the United States and will pay Medivation tiered double-digit royalties on ex-U.S. sales.Bay Area biotech SuperGen ([SUPG](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SUPG&selected=SUPG)) ) entered into a multi-year collaboration with GlaxoSmithKline ([GSK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GSK&selected=GSK)) ) to discover and develop cancer therapeutics based on epigenetic targets in a deal that could be worth as much as $375 million for the epigenetics company. The deal is seen as validation for Supergen's in-silico drug discovery platform. Under the terms of the deal, SuperGen will progress candidate compounds through to early clinical proof of concept. GlaxoSmithKline will then have the right to exercise an option to develop further and commercialize resulting products on a global basis. GSK will pay SuperGen $5 million upfront, which includes a $3 million common stock investment, priced at a premium to market. The deal includes the potential for development and commercial milestones, and double-tiered royalties.Micromet ([MITI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MITI&selected=MITI)) ) scored another hit on its BiTE antibody technology platform in a deal with Sanofi-Aventis ([SNY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNY&selected=SNY)) ). The companies entered a global collaboration and license agreement to develop a BiTE antibody against an antigen present at the surface of carcinoma cells. BiTE antibodies are novel therapeutic antibodies that activate a patient's T cells to seek out and destroy cancer cells. Under this agreement, Bethesda, Maryland-based Micromet will be mainly responsible for the discovery, research and development of the BiTE antibody through the completion of phase 1 clinical trials after which Sanofi-Aventis will have full responsibility for the further development, as well as for the worldwide commercialization. Micromet gets $12 million cash upfront and is eligible for development and regulatory milestone payments of up to $241 million, plus performance-based sales milestones of up to $224 million and royalties on worldwide product sales.Global contract research organization PPD ([PPDI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PPDI&selected=PPDI)) ) is investing $100 million in Celtic Therapeutics Holdings, an investment partnership organized to acquire and develop novel mid-stage therapeutic candidates that address unmet medical needs, and advance development of these candidates to the next key product milestone, usually the beginning or end of phase 3. PPD's investment is intended to set the stage for a strategic alliance between the companies with the goal of bringing the best products to market more quickly to meet unmet needs of patients. Finally, Ligand Pharmaceuticals ([LGND](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LGND&selected=LGND)) ) is buying struggling Metabasis Therapeutics ([MBRX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MBRX&selected=MBRX)) ) for the fire sale price of $3.2 million and contingent value rights. The La Jolla, California biotech, which has a pipeline of drugs to treat metabolic diseases, went public in June 2004 at $7 a share. Today its stock trades below 50 cents. The company burned through more than $200 million without getting any drugs to market and cut its staff down to seven people earlier this year as it ran low on cash. Under the agreement, Ligand will pay Metabasis' shareholders $1.8 million and take over more than $1.3 million in liabilities. Metabasis shareholders will receive contingent value rights that entitle them to cash payments as frequently as every six months as cash is received by Ligand from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. Ligand has committed to spend at least $8 million in new research and development funding on the Metabasis programs within 42 months following the closing of the transaction.click to enlarge [](http://static.seekingalpha.com/uploads/2009/11/1/saupload_btns_103009.png) See also [Blackstone: Benefiting from Improving Economic Trends](http://seekingalpha.com/article/172003-blackstone-benefiting-from-improving-economic-trends?source=nasdaq) on seekingalpha.com | This Week in Biotech: More Treats than Tricks | News | SeekingAlpha | Unknown | 0.0003 | 1.88448 | 1.76 | 1.69942 | 1.71917 | 1.71917 | 1.71917 | 1.71917 | 1.71917 | 1.71917 | 1.71917 | 1.71917 | 1.71917 | 1.72193 | 1.6917 | 1.76958 | 1.71759 | 2.04015 | 1.99594 |
IVR | Invesco Mortgage Capital Inc. | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/financials-rebound-2009-11-03 | 2009-11-03 01:49:00 | Markets|BAC|CIM|JPM|RWT | Last year when many wondered if the US financial system would survive the worst crisis in recent memory, we spoke with Anton Schutz about his outlook for the sector. Most of his calls panned out in the interve [Image](http://kr.nlh1.com/images/200911/aschutz.gif) ning 13 months; now that the banking system has returned to some semblance of normality, we checked back with the manager of **Burnham Financial Services** ([BURKX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BURKX&selected=BURKX)) ) and Burnham Financial Industries ([BURFX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BURFX&selected=BURFX)) ) to get his take on what's next. **Most of the nation's major banks posted strong earnings in the third quarter. Is the wind at their backs, or do problems lurk on the horizon?** Capital markets have improved but remain fragile. Credit spreads have come in and equities have appreciated, though stocks have benefited from the weaker US dollar. It feels good that the market is up, but it's up because of something that isn't good.Banks have worked through some of the issues, but there's more pain to come. Although residential real estate has stabilized, commercial real estate is still a major issue.Banks also face regulatory challenges. New rules likely will require banks to hold more capital and impose limits on what percentages of their capital can be allocated to certain business lines.Are banks going to be less profitable because of these rules? Yes and no. Some investors think banks will become similar to utilities, but they overlook that the basic banking model is more profitable today than it was over the previous decade.Banks no longer face insane competition from Wall Street and the conduits that would lend at any cost because they were selling off the risk. Today banks are getting spreads and are pulling in covenants and guarantees. The deposit side of the industry is also strong. **The last time we spoke you were particularly bullish on community banks. Has the rash of failures over the past year changed that?**I'm still of the same belief. It's helped that community banks have re-priced their loans higher, but you have to be an astute stock-picker because certain geographies remain under severe pressure.But there's still good news in these challenged areas because the Federal Deposit Insurance Corp ([FDIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDIC&selected=FDIC)) ) is making it very palatable for the healthier names to buy the sicker ones. From loss-sharing agreements to giving away deposits for virtually nothing, the FDIC is setting up deals that are terrifically accretive for acquirers. Well-capitalized institutions are going to survive and have a real chance to shine. **You still hold a number of mortgage real estate investment trusts (REITs) in your portfolios, but the names have changed since we last spoke. What's the logic behind these moves?**The names I held a year ago were the ones that spurned credit risk. They used leverage to buy agency paper and benefited from a steep yield curve and the benevolent policies of the Federal Reserve. But rates can't go any lower, and funding costs will go up once the Fed changes course. At the same time, if mortgage rates come down and a wave of refinancing ensues, these trusts will lose some assets to prepayment. Because these assets are trading above par, these REITs could take a pretty good punch to the face. Conversely, mortgage REITs that are credit sensitive will benefit from refinancing because they're buying assets that aren't as strong--the ones that people are dumping at cheap prices. These guys are buying mortgages at 50 or 60 cents on the dollar; if the borrower refinances, they get 100 cents on the dollar. And the values of these distressed assets continue to go up as credit spreads come in.Companies like **Invesco Mortgage Capital** ([IVR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVR&selected=IVR)) ) and **PennyMac Mortgage Investment Trust (** NYSE: PMT) are taking advantage of the government's Public-Private Investment Program. PennyMac is following a servicing model, buying scratch-and-dent mortgages and working hard to restructure them. **You also have what appear to be a few private-equity outfits in your portfolios. Aren't those risky plays in these markets?****Capital Acquisition Corp** ([CLA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLA&selected=CLA)) ) is about to go from being a special-purpose acquisition company to a mortgage REIT in the vein of **Chimera Investment Corp** ([CIM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIM&selected=CIM)) ) or **Redwood Trust** ([RWT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RWT&selected=RWT)) ). I'm buying the stock basically at book value, whereas the other names trade at a premium. That play is a value manager's way of getting into an attractive asset class.The other one, Global Comsumer Acquisition Corp, actually closed its deal and is now **Western Liberty Bancorp** ([WLBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WLBC&selected=WLBC)) ). The company has a bank charter coming and agreements to buy a couple of banks in Nevada. It will use its excess capital to participate in FDIC-facilitated acquisitions. Once Western Liberty gets its first couple of deals on the table, the stock should garner more attention. **A lot of names appear to be overvalued. Has that narrowed your investment options?**Some of the biggest names appear to be overvalued, but the best smaller names offer lots of upside.That being said, **Bank of America** ([BAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAC&selected=BAC)) ) still has 100 percent upside. I think the stock could trade above $30. A normalized earnings run rate could be in the $3.00 to $3.50 range--if you put a ten multiple on it, there you go.Some daunting challenges are keeping the stock at $17, but it should pull through.The bank's capital ratios grew last quarter, and the management issues will be resolved--from Bryan Moynihan [current president of consumer banking] to Alvaro de Molina [former chief executive officer], there's a number of good candidates. Bank of America's huge market share and leadership in a number of businesses eventually will translate into higher prices. The Merrill Lynch and Countrywide franchises are performing well, but the company still has to work through credit issues in its consumer and credit card portfolios. **Are there any nooks and crannies in the financial sector that look attractive?**I spend the most time looking for potential mergers and acquisitions. But you don't want the targets--the targets are sick.If you sift through all of the secondary offerings, most banks are raising capital for two reasons. In some instances, these are defensive moves to shore up leaky balance sheets, but most are raising excess capital to go on the offensive. **1st United Bancorp** ([FUBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FUBC&selected=FUBC)) ) down in Florida-based is one example. I don't like the symbol, but I like management a lot. The stock traded on the pink sheets as recently as two months ago and had a $40 million market cap. But management leveraged its reputation to raise $70 million, much of which will be used to buy broken banks in Florida. The bank will add tremendous value with each incremental transaction it makes. **CenterState Banks** ([CSFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSFL&selected=CSFL)) ) is another Florida bank on my radar. Like 1st United, it's raised a bunch of money and is looking for distressed acquisitions in its own backyard. FDIC-assisted deals not only raise earnings power, but they also raise book value and are accretive transactions. In these deals the acquirer takes the good with the bad, but the bad isn't that bad when the FDIC shares the losses. **What's your best advice for the next twelve months?**Financial stocks should generate phenomenal returns over the next three to five years because of the restructuring that's underway.The biggest names have already priced in a lot of good news, but at these levels you should still be able to make a 100 percent return on Bank of America's stock and a 50 percent return on **JP Morgan Chase** ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ). I see even more upside in the smaller names that survive.That being said, it will take patience to take advantage of these opportunities, and you still have to approach the group with a high degree of selectivity--an exchange-traded fund or other blanket approach isn't the way to go. The nation's largest institutions have survived, but a lot of smaller names won't make it. Failures will definitely number in the hundreds. There's a lot of risk out there, and you've got to know what you're doing. You can buy a fund like mine or focus on companies that have raised offensive capital. [Image](http://kr.nlh1.com/images/200911/antontopfive_p5.gif) Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/) | Financials on the Rebound | News | Investing Daily | Unknown | 0.0004 | 20.0054 | 19.9722 | 19.9745 | 19.7395 | 19.7395 | 19.7395 | 19.7397 | 19.7397 | 19.7395 | 19.7395 | 19.6684 | 19.4988 | 19.4498 | 19.9049 | 20.4623 | 20.6217 | 21.9404 | 21.8032 |
RWT | Redwood Trust, Inc. | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/financials-rebound-2009-11-03 | 2009-11-03 01:49:00 | Markets|BAC|CIM|JPM|IVR | Last year when many wondered if the US financial system would survive the worst crisis in recent memory, we spoke with Anton Schutz about his outlook for the sector. Most of his calls panned out in the interve [Image](http://kr.nlh1.com/images/200911/aschutz.gif) ning 13 months; now that the banking system has returned to some semblance of normality, we checked back with the manager of **Burnham Financial Services** ([BURKX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BURKX&selected=BURKX)) ) and Burnham Financial Industries ([BURFX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BURFX&selected=BURFX)) ) to get his take on what's next. **Most of the nation's major banks posted strong earnings in the third quarter. Is the wind at their backs, or do problems lurk on the horizon?** Capital markets have improved but remain fragile. Credit spreads have come in and equities have appreciated, though stocks have benefited from the weaker US dollar. It feels good that the market is up, but it's up because of something that isn't good.Banks have worked through some of the issues, but there's more pain to come. Although residential real estate has stabilized, commercial real estate is still a major issue.Banks also face regulatory challenges. New rules likely will require banks to hold more capital and impose limits on what percentages of their capital can be allocated to certain business lines.Are banks going to be less profitable because of these rules? Yes and no. Some investors think banks will become similar to utilities, but they overlook that the basic banking model is more profitable today than it was over the previous decade.Banks no longer face insane competition from Wall Street and the conduits that would lend at any cost because they were selling off the risk. Today banks are getting spreads and are pulling in covenants and guarantees. The deposit side of the industry is also strong. **The last time we spoke you were particularly bullish on community banks. Has the rash of failures over the past year changed that?**I'm still of the same belief. It's helped that community banks have re-priced their loans higher, but you have to be an astute stock-picker because certain geographies remain under severe pressure.But there's still good news in these challenged areas because the Federal Deposit Insurance Corp ([FDIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDIC&selected=FDIC)) ) is making it very palatable for the healthier names to buy the sicker ones. From loss-sharing agreements to giving away deposits for virtually nothing, the FDIC is setting up deals that are terrifically accretive for acquirers. Well-capitalized institutions are going to survive and have a real chance to shine. **You still hold a number of mortgage real estate investment trusts (REITs) in your portfolios, but the names have changed since we last spoke. What's the logic behind these moves?**The names I held a year ago were the ones that spurned credit risk. They used leverage to buy agency paper and benefited from a steep yield curve and the benevolent policies of the Federal Reserve. But rates can't go any lower, and funding costs will go up once the Fed changes course. At the same time, if mortgage rates come down and a wave of refinancing ensues, these trusts will lose some assets to prepayment. Because these assets are trading above par, these REITs could take a pretty good punch to the face. Conversely, mortgage REITs that are credit sensitive will benefit from refinancing because they're buying assets that aren't as strong--the ones that people are dumping at cheap prices. These guys are buying mortgages at 50 or 60 cents on the dollar; if the borrower refinances, they get 100 cents on the dollar. And the values of these distressed assets continue to go up as credit spreads come in.Companies like **Invesco Mortgage Capital** ([IVR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVR&selected=IVR)) ) and **PennyMac Mortgage Investment Trust (** NYSE: PMT) are taking advantage of the government's Public-Private Investment Program. PennyMac is following a servicing model, buying scratch-and-dent mortgages and working hard to restructure them. **You also have what appear to be a few private-equity outfits in your portfolios. Aren't those risky plays in these markets?****Capital Acquisition Corp** ([CLA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLA&selected=CLA)) ) is about to go from being a special-purpose acquisition company to a mortgage REIT in the vein of **Chimera Investment Corp** ([CIM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIM&selected=CIM)) ) or **Redwood Trust** ([RWT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RWT&selected=RWT)) ). I'm buying the stock basically at book value, whereas the other names trade at a premium. That play is a value manager's way of getting into an attractive asset class.The other one, Global Comsumer Acquisition Corp, actually closed its deal and is now **Western Liberty Bancorp** ([WLBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WLBC&selected=WLBC)) ). The company has a bank charter coming and agreements to buy a couple of banks in Nevada. It will use its excess capital to participate in FDIC-facilitated acquisitions. Once Western Liberty gets its first couple of deals on the table, the stock should garner more attention. **A lot of names appear to be overvalued. Has that narrowed your investment options?**Some of the biggest names appear to be overvalued, but the best smaller names offer lots of upside.That being said, **Bank of America** ([BAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAC&selected=BAC)) ) still has 100 percent upside. I think the stock could trade above $30. A normalized earnings run rate could be in the $3.00 to $3.50 range--if you put a ten multiple on it, there you go.Some daunting challenges are keeping the stock at $17, but it should pull through.The bank's capital ratios grew last quarter, and the management issues will be resolved--from Bryan Moynihan [current president of consumer banking] to Alvaro de Molina [former chief executive officer], there's a number of good candidates. Bank of America's huge market share and leadership in a number of businesses eventually will translate into higher prices. The Merrill Lynch and Countrywide franchises are performing well, but the company still has to work through credit issues in its consumer and credit card portfolios. **Are there any nooks and crannies in the financial sector that look attractive?**I spend the most time looking for potential mergers and acquisitions. But you don't want the targets--the targets are sick.If you sift through all of the secondary offerings, most banks are raising capital for two reasons. In some instances, these are defensive moves to shore up leaky balance sheets, but most are raising excess capital to go on the offensive. **1st United Bancorp** ([FUBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FUBC&selected=FUBC)) ) down in Florida-based is one example. I don't like the symbol, but I like management a lot. The stock traded on the pink sheets as recently as two months ago and had a $40 million market cap. But management leveraged its reputation to raise $70 million, much of which will be used to buy broken banks in Florida. The bank will add tremendous value with each incremental transaction it makes. **CenterState Banks** ([CSFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSFL&selected=CSFL)) ) is another Florida bank on my radar. Like 1st United, it's raised a bunch of money and is looking for distressed acquisitions in its own backyard. FDIC-assisted deals not only raise earnings power, but they also raise book value and are accretive transactions. In these deals the acquirer takes the good with the bad, but the bad isn't that bad when the FDIC shares the losses. **What's your best advice for the next twelve months?**Financial stocks should generate phenomenal returns over the next three to five years because of the restructuring that's underway.The biggest names have already priced in a lot of good news, but at these levels you should still be able to make a 100 percent return on Bank of America's stock and a 50 percent return on **JP Morgan Chase** ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ). I see even more upside in the smaller names that survive.That being said, it will take patience to take advantage of these opportunities, and you still have to approach the group with a high degree of selectivity--an exchange-traded fund or other blanket approach isn't the way to go. The nation's largest institutions have survived, but a lot of smaller names won't make it. Failures will definitely number in the hundreds. There's a lot of risk out there, and you've got to know what you're doing. You can buy a fund like mine or focus on companies that have raised offensive capital. [Image](http://kr.nlh1.com/images/200911/antontopfive_p5.gif) Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/) | Financials on the Rebound | News | Investing Daily | Unknown | 0.0004 | 14.1711 | 13.9828 | 13.984 | 13.7045 | 13.7035 | 13.7035 | 13.7035 | 13.7045 | 13.7046 | 13.7046 | 13.6891 | 13.8823 | 14.3648 | 14.2084 | 13.3092 | 13.409 | 13.8339 | 14.6816 |
CIM | Chimera Investment Corporation | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/financials-rebound-2009-11-03 | 2009-11-03 01:49:00 | Markets|BAC|JPM|RWT|IVR | Last year when many wondered if the US financial system would survive the worst crisis in recent memory, we spoke with Anton Schutz about his outlook for the sector. Most of his calls panned out in the interve [Image](http://kr.nlh1.com/images/200911/aschutz.gif) ning 13 months; now that the banking system has returned to some semblance of normality, we checked back with the manager of **Burnham Financial Services** ([BURKX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BURKX&selected=BURKX)) ) and Burnham Financial Industries ([BURFX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BURFX&selected=BURFX)) ) to get his take on what's next. **Most of the nation's major banks posted strong earnings in the third quarter. Is the wind at their backs, or do problems lurk on the horizon?** Capital markets have improved but remain fragile. Credit spreads have come in and equities have appreciated, though stocks have benefited from the weaker US dollar. It feels good that the market is up, but it's up because of something that isn't good.Banks have worked through some of the issues, but there's more pain to come. Although residential real estate has stabilized, commercial real estate is still a major issue.Banks also face regulatory challenges. New rules likely will require banks to hold more capital and impose limits on what percentages of their capital can be allocated to certain business lines.Are banks going to be less profitable because of these rules? Yes and no. Some investors think banks will become similar to utilities, but they overlook that the basic banking model is more profitable today than it was over the previous decade.Banks no longer face insane competition from Wall Street and the conduits that would lend at any cost because they were selling off the risk. Today banks are getting spreads and are pulling in covenants and guarantees. The deposit side of the industry is also strong. **The last time we spoke you were particularly bullish on community banks. Has the rash of failures over the past year changed that?**I'm still of the same belief. It's helped that community banks have re-priced their loans higher, but you have to be an astute stock-picker because certain geographies remain under severe pressure.But there's still good news in these challenged areas because the Federal Deposit Insurance Corp ([FDIC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FDIC&selected=FDIC)) ) is making it very palatable for the healthier names to buy the sicker ones. From loss-sharing agreements to giving away deposits for virtually nothing, the FDIC is setting up deals that are terrifically accretive for acquirers. Well-capitalized institutions are going to survive and have a real chance to shine. **You still hold a number of mortgage real estate investment trusts (REITs) in your portfolios, but the names have changed since we last spoke. What's the logic behind these moves?**The names I held a year ago were the ones that spurned credit risk. They used leverage to buy agency paper and benefited from a steep yield curve and the benevolent policies of the Federal Reserve. But rates can't go any lower, and funding costs will go up once the Fed changes course. At the same time, if mortgage rates come down and a wave of refinancing ensues, these trusts will lose some assets to prepayment. Because these assets are trading above par, these REITs could take a pretty good punch to the face. Conversely, mortgage REITs that are credit sensitive will benefit from refinancing because they're buying assets that aren't as strong--the ones that people are dumping at cheap prices. These guys are buying mortgages at 50 or 60 cents on the dollar; if the borrower refinances, they get 100 cents on the dollar. And the values of these distressed assets continue to go up as credit spreads come in.Companies like **Invesco Mortgage Capital** ([IVR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IVR&selected=IVR)) ) and **PennyMac Mortgage Investment Trust (** NYSE: PMT) are taking advantage of the government's Public-Private Investment Program. PennyMac is following a servicing model, buying scratch-and-dent mortgages and working hard to restructure them. **You also have what appear to be a few private-equity outfits in your portfolios. Aren't those risky plays in these markets?****Capital Acquisition Corp** ([CLA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CLA&selected=CLA)) ) is about to go from being a special-purpose acquisition company to a mortgage REIT in the vein of **Chimera Investment Corp** ([CIM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CIM&selected=CIM)) ) or **Redwood Trust** ([RWT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=RWT&selected=RWT)) ). I'm buying the stock basically at book value, whereas the other names trade at a premium. That play is a value manager's way of getting into an attractive asset class.The other one, Global Comsumer Acquisition Corp, actually closed its deal and is now **Western Liberty Bancorp** ([WLBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WLBC&selected=WLBC)) ). The company has a bank charter coming and agreements to buy a couple of banks in Nevada. It will use its excess capital to participate in FDIC-facilitated acquisitions. Once Western Liberty gets its first couple of deals on the table, the stock should garner more attention. **A lot of names appear to be overvalued. Has that narrowed your investment options?**Some of the biggest names appear to be overvalued, but the best smaller names offer lots of upside.That being said, **Bank of America** ([BAC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BAC&selected=BAC)) ) still has 100 percent upside. I think the stock could trade above $30. A normalized earnings run rate could be in the $3.00 to $3.50 range--if you put a ten multiple on it, there you go.Some daunting challenges are keeping the stock at $17, but it should pull through.The bank's capital ratios grew last quarter, and the management issues will be resolved--from Bryan Moynihan [current president of consumer banking] to Alvaro de Molina [former chief executive officer], there's a number of good candidates. Bank of America's huge market share and leadership in a number of businesses eventually will translate into higher prices. The Merrill Lynch and Countrywide franchises are performing well, but the company still has to work through credit issues in its consumer and credit card portfolios. **Are there any nooks and crannies in the financial sector that look attractive?**I spend the most time looking for potential mergers and acquisitions. But you don't want the targets--the targets are sick.If you sift through all of the secondary offerings, most banks are raising capital for two reasons. In some instances, these are defensive moves to shore up leaky balance sheets, but most are raising excess capital to go on the offensive. **1st United Bancorp** ([FUBC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FUBC&selected=FUBC)) ) down in Florida-based is one example. I don't like the symbol, but I like management a lot. The stock traded on the pink sheets as recently as two months ago and had a $40 million market cap. But management leveraged its reputation to raise $70 million, much of which will be used to buy broken banks in Florida. The bank will add tremendous value with each incremental transaction it makes. **CenterState Banks** ([CSFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CSFL&selected=CSFL)) ) is another Florida bank on my radar. Like 1st United, it's raised a bunch of money and is looking for distressed acquisitions in its own backyard. FDIC-assisted deals not only raise earnings power, but they also raise book value and are accretive transactions. In these deals the acquirer takes the good with the bad, but the bad isn't that bad when the FDIC shares the losses. **What's your best advice for the next twelve months?**Financial stocks should generate phenomenal returns over the next three to five years because of the restructuring that's underway.The biggest names have already priced in a lot of good news, but at these levels you should still be able to make a 100 percent return on Bank of America's stock and a 50 percent return on **JP Morgan Chase** ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ). I see even more upside in the smaller names that survive.That being said, it will take patience to take advantage of these opportunities, and you still have to approach the group with a high degree of selectivity--an exchange-traded fund or other blanket approach isn't the way to go. The nation's largest institutions have survived, but a lot of smaller names won't make it. Failures will definitely number in the hundreds. There's a lot of risk out there, and you've got to know what you're doing. You can buy a fund like mine or focus on companies that have raised offensive capital. [Image](http://kr.nlh1.com/images/200911/antontopfive_p5.gif) Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/) | Financials on the Rebound | News | Investing Daily | Unknown | 0.0004 | 3.71502 | 3.53112 | 3.53259 | 3.7297 | 3.7297 | 3.7297 | 3.7297 | 3.7297 | 3.7297 | 3.7297 | 3.69052 | 3.69601 | 3.72727 | 3.60958 | 3.67289 | 3.67971 | 3.92798 | 4.03103 |
LGND | Ligand Pharmaceuticals Incorporated | Health Care | Biotechnology: Pharmaceutical Preparations | https://www.nasdaq.com/articles/three-core-biotech-holdings-isis-ligand-and-vical-2009-11-09 | 2009-11-09 03:51:00 | GSK|Markets|PFE|FRTX|ABT | ** [Michael Steinberg](http://clickbroker.blogspot.com/) submits:**Isis ([ISIS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ISIS&selected=ISIS)) ), Ligand ([LGND](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LGND&selected=LGND)) ) and Vical ([VICL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VICL&selected=VICL)) ) have been my core biotech holdings since the mid 1990s and I have been steadily adding to these positions each time the market has lost faith. They share common themes and some differences. Isis and Vical have maintained consistent management throughout the years, whereas Ligand radically changed direction a few years ago when Daniel Loeb's Third Point hedge fund took a stake. Now all three are focused on drug discovery; leaving the marketing to others.All three have many pharmaceutical partnerships and many shots on goal, so one failure would not be devastating. In order of platform strength and a protective moat around their technology; Isis is the strongest, followed by Vical, with Ligand pulling up the rear. Ligand has announced a strategy of picking up funded drug candidates through low cost mergers with desperate cash-strapped micro-cap biotechs. They want to partner their internal development candidates at the earliest possible inflection point, but not much past the initial phase 2 "proof of concept" clinical trials.Historically, Ligand sold over half of its potential royal streams and settled for higher upfronts over royalties to build a commercial sales organization for a few fledging products. Third Point installed new management, sold Ligand's commercial products, declared a special $2.50 dividend and set the company on the path of operating cash flow neutral.Three potential blockbusters are close to launch by GlaxoSmithKline ([GSK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GSK&selected=GSK)) ) and Pfizer ([PFE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PFE&selected=PFE)) ) with sacrificed royalties. Now Ligand is showing more emphasis on royalties than the upfront, a better balance. The encouragement is that new deals are being negotiated with mid-teen and higher royalties. Looking back, I had too much faith in Ligand's old management and now I'm solidly on Dan Loeb's team with Ligand.Isis' years of failure have been legendary, but the Genzyme ([GENZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GENZ&selected=GENZ)) ) almost $2B deal on the Mipomersen cholesterol drug was the turning point. Together with the $200M sale of Ibis Biosciences to Abbott ([ABT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ABT&selected=ABT)) ), Isis has almost as much cash as India has gold. Isis has over 20 drugs in development and repeatedly committed to keeping its employment below 325 while continuing to rev its discovery engine in high gear.Both Ligand and Isis will be high earners when royalties start flowing and expenses are maintained at a low level. The difference is Isis is willing to take the clinical process to a higher inflection point to get 50% profit sharing whereas Ligand will settle for less risk and investment to get a 15% royalty. But, neither company wants a sales force. Vical has been more ambiguous about commercialization. Their DNA vaccine platform has some pharmaceutical and government sponsorship, and they are retaining US rights to their cancer vaccine. Vical is the most risky of the three companies with only about 2 years of cash and limited research funding. But, they have some drugs in phase 3. The bet on Vical is that [DNA based vaccines are the only way to respond quickly to potential pandemics](http://clickbroker.blogspot.com/2009/07/swine-flu-scare-wheres-vical.html) .My core biotech holdings are high risk, high reward. What they have in common is no fear of future product discovery. They can partner knowing there are always more drugs to come. I try to avoid all or nothing biotechs.Don't be fooled by one product cancer companies alleging that they will diversify into other indications for their one drug. Most of the time, other indications fail. Know that a single drug is not a platform. My core biotechs are all platform companies; Isis and Vical are based on solid technical platforms and Ligand is based a solid business platform.P.S.: PDL Biopharma ([PDLI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PDLI&selected=PDLI)) ) learned it was a mistake to resist Daniel Loeb's advances. **Disclosure:**Author is long Isis, Ligand, PDLI, PFE and Vical.See also [IBM Researchers Speed Up Diagnostic Testing in New Breakthrough](http://seekingalpha.com/article/173885-ibm-researchers-speed-up-diagnostic-testing-in-new-breakthrough?source=nasdaq) on seekingalpha.com | Three Core Biotech Holdings: Isis, Ligand and Vical | News | SeekingAlpha | Unknown | 0.0006 | 1.71759 | 2.00495 | 2.00492 | 2.00455 | 2.00455 | 2.00455 | 2.00455 | 2.00455 | 2.00455 | 1.96903 | 1.99818 | 1.98552 | 1.97981 | 2.00818 | 1.9946 | 2.04026 | 2.19714 | 1.88337 |
SRDX | Surmodics, Inc. | Health Care | Medical/Dental Instruments | https://www.nasdaq.com/articles/developments-parkinsons-disease-ignite-investor-enthusiasm-2009-11-16 | 2009-11-16 03:23:00 | Markets|FOLD | ** [Michael Becker](http://mdbpartners.wordpress.com/) submits:**In our August 2009 article titled " [Treating Parkinson's Disease: Investment Opportunities and Challenges](http://mdbpartners.com/blog/2009/08/02/treating-parkinson%e2%80%99s-disease-investment-opportunities-and-challenges/) ," we reviewed some of the historical challenges associated with developing treatments for Parkinson's disease [PD] and cited reasons for optimism going forward in addition to highlighting several promising companies making progress. Since that time, many of the companies we featured have reported clinical progress, presented promising new data, and produced significant returns for investors - with several stocks reaching 52-week highs. In view of renewed investor enthusiasm for companies working in the area of PD, the purpose of this article is to provide an update on previously mentioned companies and introduce some new players that are making headlines in the PD space. **Improvements on Existing Therapies** Levodopa [L-dopa] is one of the most commonly prescribed medicines for PD. L-dopa initially reduces the symptoms of slowness, stiffness and tremor associated with PD; over time the dose of L-dopa needs to be increased often resulting in drug related complications. Several biopharmaceutical companies are developing new drug formulations of currently approved medicines: **Impax Laboratories, Inc. **Shares of Impax Laboratories, Inc. ([IPXL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=IPXL&selected=IPXL)) ), which were trading around $7.50 at the time our initial PD article published, recently reached a new 52-week high of $10.86, representing a 45% increase in a matter of months. The company recently initiated a multinational Phase III trial of its late-stage drug candidate IPX066 in advanced PD patients. IPX066 is an investigational extended release carbidopa-levodopa product intended to rapidly achieve and then sustain effective blood concentrations of levodopa, potentially improving PD clinical symptom management. This is the second of two Phase III studies designed to support marketing approval of IPX066 in Parkinson's disease. In June 2009, Impax reported the initiation of the first Phase III study of IPX066 in treatment naïve PD patients. **Nupathe Inc. and SurModics, Inc. **Privately-held Nupthe Inc., a neuroscience-focused specialty pharmaceutical company, recently announced a partnership with SurModics, Inc. ([SRDX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SRDX&selected=SRDX)) ), a leading provider of drug delivery and surface modifications to the healthcare industry, for development of NP201. NP201 is a biodegradable sustained release formulation of an approved dopamine agonist and the first long-acting treatment available in broadly acceptable dose form that maintains the potential to provide sustained relief from Parkinson's disease without motor response complications. NP201 leverages NuPathe's long-acting delivery [LAD™] technology and SurModics' proprietary biodegradable polymer matrix implant technology to achieve optimal drug release over an extended period of time. NP201 consists of a dopamine agonist formulated to provide effective relief of the signs and symptoms of Parkinson's disease [e.g., tremor, rigidity, postural instability] for 1-3 months with a single administration. By providing stable, continuous drug delivery over an extended period, NP201 may significantly decrease the dose complications associated with current treatments. Furthermore, many researchers believe that continuous, stable stimulation of the dopamine receptors may slow the progression of the disease. **Neurotrophic Factors and Gene Therapy** Neurotrophic factors are a family of proteins responsible for the growth and survival of developing neurons and the maintenance of mature neurons. Neurotrophic factors represent an attractive drug class because of their anti-apoptotic properties*. Several classes of neurotrophic factors exist, each with unique pharmacodynamic properties. Investigators are still in the process of understanding the different receptor targets of these proteins and the downstream cellular responses; therefore, the best individual or combination of neurotrophic factors is not yet known. Despite these challenges, several companies are proceeding with development of this promising class of drugs.Local administration of neurotrophic growth factors is required to achieve therapeutic concentrations in the target tissue, although the site of administration and method of delivery have represented significant historical barriers. We believe gene therapy is among the more promising delivery alternatives for companies seeking to restore abnormal cellular signaling, especially in diseases with difficult to reach targets such as PD, and several companies have demonstrated considerable progress. **Ceregene, Inc. **Just a few days after our original PD article published in August, privately-held Ceregene, Inc. announced that the Michael J. Fox Foundation for Parkinson's Research [MJFF] will provide funds for long-term follow-up testing of patients enrolled in the company's Phase II trial of CERE-120. CERE-120 is an adeno-associated virus [AAV] carrying the gene for neurturin [NRTN], a naturally occurring neurotrophic factor that repairs damaged and dying dopamine-secreting neurons. The funding will enable Ceregene to collect and analyze more extensive data for up to 48 months from patients with advanced PD who were enrolled in the double-blind, controlled trial which ended in November 2008. The Phase II trial involved 52 patients and failed to demonstrate a difference in the primary endpoint in the treated versus the control group. However, the study suggested improvements in secondary endpoints at 12 months. Based on those findings, and insight gained from analyses of post-mortem brain tissue from two CERE-120 treated patients, the company has revised the dosing regimen and expects to initiate a new trial of CERE-120 in the near future. In October 2009, BioSante Pharmaceuticals, Inc. ([BPAX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BPAX&selected=BPAX)) ) completed its merger with Cell Genesys, Inc. ([CEGE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CEGE&selected=CEGE)) ) and now owns a sixteen [16] percent equity ownership position in Ceregene, a former subsidiary of Cell Genesys. **Phytopharm plc** Phytopharm plc ([PYM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PYM&selected=PYM)) ) is developing Cogane™, a novel non-peptide, orally bioavailable neurotrophic factor inducer that readily crosses the blood brain barrier. In preclinical models, Cogane reverses the changes in the area of the brain involved in Parkinson's disease by inducing the body's own production of neurotrophic factors including glial cell line-derived neurotrophic factor [GDNF].Phytopharm recently announced two positive results from studies for Cogane. In the first study, funded by a grant from MJFF, Cogane demonstrated efficacy in a preclinical study using a non-clinical, non-human primate model of PD resulting in a 43% reduction in parkinsonian disability. In the second study, the company reported Phase 1b, 28-day safety data. It demonstrated that Cogane was well tolerated, with blood levels of Cogane reaching efficacy levels seen in the non-human primate model.The promising results, although still early in clinical development, demonstrate the scientific and financial interest in this biologic pathway and a Phase II, proof-of-concept study for Cogane is planned to commence in the second quarter of 2010.Shares of Phytopharm soared more than 300% to a new 52-week high of 26.95 pence ($4.46) on the news. **Oxford BioMedica** Oxford BioMedica ([OXB](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OXB&selected=OXB)) ) recently presented data that positions the company at the forefront of gene therapy for PD. Oxford BioMedica ([OXBDF.PK](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OXBDF.PK&selected=OXBDF.PK)) ) recently announced new data from the ongoing Phase I/II trial of ProSavin®, its novel gene therapy for the treatment of PD. All patients treated at the second dose level have completed their six-month assessments and have shown further improvement in motor function. The maximum improvement was 53% and the average was 34% relative to patients' pre-treatment motor function.The Principal Investigator, Professor Stéphane Palfi of the Henri Mondor Hospital in Paris, is expected to present interim results from the trial at the European Society of Gene & Cell Therapy Annual Congress, being held November 21-25, 2009, in Hannover, Germany.In addition, Oxford BioMedica recently released preclinical studies demonstrating increased dopamine production without the addition of L-DOPA resulting in decreased disease severity without the dyskinesias associated with L-DOPA [1]. Movement and posture were significantly improved after two weeks [pOxford BioMedica has clearly taken the lead in the race for novel PD therapies. In addition to the excellent safety profile, ProSavin delivers three genes, AADC [aromatic amino acid decarboxylase], TH [tyrosine hydroxylase] and CH1 [GTP-cyclohydrolase 1], addressing multiple protein targets associated with PD pathophysiology. As Oxford BioMedica continues clinical development, including dosing optimization, this therapy could potentially offer long-term improvements in patients afflicted with PD.Shares of Oxford BioMedica, which were trading around 10.00 pence ($1.67) at the time our original PD article published, more than doubled and reached a new 52-week high of 21.75 pence ($3.64) on the news, resulting in upgrades from research analysts. **Neurologix, Inc. **Neurologix, Inc. ([NRGX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NRGX&selected=NRGX)) ) is developing NLX-P101, an AAV vector delivering an inhibitory therapeutic gene [glutamic acid decarboxylase, or "GAD"] which is inserted in the subthalmic nucleus [STN]. In its third quarter of 2009 financial results press release, Neurologix reported that its Data Monitoring Committee held its second meeting to review the progress of the ongoing Phase II study of NLX-P101 and recommended that the trial continue unmodified. Despite having one of the most clinically advanced gene therapy solutions for PD, Neurologix also disclosed that the company must secure additional funding by December 31, 2009, or shortly thereafter, otherwise its ability to continue as a "going concern" may be in doubt. While the company remains on track to complete all surgeries for the Phase II study before year-end, the first efficacy results from this trial won't be available until around mid-year 2010. **Link Between Gaucher's Disease and PD Published** Recent clinical data has demonstrated that a mutation in the gene encoding glucocerebrosidase [GBA] in patients with PD is the most common genetic risk factor for Parkinson's disease identified to date. The lysosomal enzyme GBA is deficient in patients with Gaucher's disease; lack of a functional copy of GBA results in accumulation of glucocerebroside in many tissues including the liver, lungs, brain, and spleen. In a recent New England Journal of Medicine [NEJM] article, 20% of Ashkenazi Jewish Patients and 7% of Non-Ashkenazi Jewish Patients were found to be carriers of a GBA mutation [2]. Patients with a GBA mutation presented earlier with the disease, were more likely to have affected relatives, and were more likely to have atypical clinical manifestations. **Amicus Therapeutics, Inc. **Amicus Therapeutics, Inc. ([FOLD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FOLD&selected=FOLD)) ) recently presented data demonstrating a correlation between GBA and alpha-synuclein, an upregulated PD protein that can form aggregated insoluble amyloid fibrils and neuronal toxicity. Alpha-synuclein up-regulation and aggregation has previously been shown to be critical in the development of PD. Amicus' in vivo data shows that increasing GBA activity re-established alpha-synuclein homeostasis. In a mouse model overexpressing alpha-synuclein, Amicus was able to restore normal synuclein levels by increasing the GBA activity with Plicera™ [afegostat tartrate], the company's experimental, oral therapy for the treatment of Gaucher disease that belongs to a class of molecules known as pharmacological chaperones.This is important for two reasons: 1) by restoring GBA activity to normal levels, this could potentially decrease the risk of PD for patients with a GBA genetic mutation and 2) in patients that are not carriers [i.e. normal GBA but elevated synucleins], the preclinical data has shown that increasing GBA activity above normal levels restores alpha-synuclein levels, possibly slowing disease progression. Amicus, which has also received funding support from MJFF, plans to continue its preclinical chaperone molecule optimization, including Plicera, in an in vivo PD motor deficit model.Success in this area could reignite investor interest in Amicus, which recently announced negative results from a Phase II trial with Plicera in Gaucher's disease. The genetic link between GBA and PD is clear and although the direct molecular relationship between these two proteins is not completely understood, GBA is a new and attractive therapeutic target for PD. Importantly, in the Phase II trial for Gaucher's disease, Amicus demonstrated an increase in GBA activity in those patients receiving Plicera and the company recently reacquired global development and commercialization rights to the product candidate from Shire plc ([SHPGY](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SHPGY&selected=SHPGY)) ). Amicus has a clear lead in developing small molecules that increase GBA activity and despite the Gaucher's disease trial setback, complete GBA restoration may not be needed to restore normal synuclein levels. Amicus will continue with lead optimization for GBA in the brain, including Plicera, for the treatment of PD along with other GBA chaperone molecules. Clearly, Plicera is an attractive lead compound because much of the preclinical and phase I safety studies have been completed and it has been shown to cross the blood brain barrier. **Conclusion** While treatment of PD is complex due to the disease location, difficulty in clinical trials, and multiple causes of pathophysiology, investor enthusiasm for companies working in this area is warranted in view of recent progress.Several companies, such as Impax Laboratories and Nupathe, are developing new drug formulations of currently approved medicines. If approved, these drugs could improve the side effect profiles of the FDA approved medicines. From an investors perspective, these companies are attractive since the FDA approval process will be much more straightforward and physician acceptance will be high because these drugs are an improvement on a known drug class.Other companies, although generally earlier in development, are using neurotrophic factors and gene therapy approaches to directly address the disease mechanism. While much riskier, these new technologies could drastically change the disease outcomes of those patients afflicted with this debilitating disease. Speed to market combined with superior efficacy will be critical for high market penetration.* Neurotrophic factors were discovered in 1948 in the brain. Originally thought to be exclusive to the brain, these peptides are now found to have broader applications in other cell types and locations. Due to their pharmacodynamic properties such as reducing ER stress, neurotrophic factors possess anti-apoptotic properties and could serve as therapies for many diseases such as myocardial infarctions/ischemia and stroke. References: - Sci Transl Med. 14 October 2009 1:2ps2 - N Engl J Med. 22 October 2009;361(17):1651-61 **Disclosure** : No positionsSee also [Petrobras' Long-Term Prospects Look as Strong as Ever](http://seekingalpha.com/article/175498-petrobras-long-term-prospects-look-as-strong-as-ever?source=nasdaq) on seekingalpha.com | Developments for Parkinson's Disease Ignite Investor Enthusiasm | News | SeekingAlpha | Unknown | 0.0005 | 23.5444 | 23.3835 | 23.4758 | 23.4763 | 23.4763 | 23.4763 | 23.4763 | 23.4763 | 23.4763 | 23.4763 | 23.9893 | 23.6413 | 23.5779 | 23.5656 | 23.2515 | 22.6668 | 22.4655 | 24.8298 |
OLP | One Liberty Properties, Inc. | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/high-yielders-decade-sales-growth-2009-11-17 | 2009-11-17 01:02:00 | Markets|FREVS|WMT|ACMC|SUI|EPR|O|MDT|MBCN | Only 313 U.S. companies have increased sales every year for the past decade. These are companies that have improved every year since 1999 -- growing through three presidents and two bear markets.Some of the biggest names that have pulled off this financial feat include Wal-Mart ([WMT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WMT&selected=WMT)) ), Amazon.com (Nasdaq: AMZN) and Medtronic ([MDT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MDT&selected=MDT)) ). Most of these companies don't pay enough in dividends -- or any in Amazon.com's case -- to make the final cut for serious income investors. Thirteen of the 313 U.S. companies pay more than 6%. **Company (Ticker)****Type****Yield****EPS****DPS** Buckeye Partners([BPL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=BPL&selected=BPL)) ) MLP7.2%$1.48$3.58Penn Virginia([PVR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PVR&selected=PVR)) ) Energy10.0%$0.62$1.88Empire District Electric ([EDE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EDE&selected=EDE)) ) Utility7.0%$1.20$1.28Realty Income([O](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=O&selected=O)) ) REIT7.0%$1.02$1.70Wash Real Estate([WRE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WRE&selected=WRE)) ) REIT6.3%$0.73$1.73Entertainment Prop. ([EPR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EPR&selected=EPR)) ) REIT8.3%$0.06$2.79Sun Communities([SUI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SUI&selected=SUI)) ) REIT13.4%-$1.19$2.52Investors Real(Nasdaq: IRET) REIT8.1%$0.10$0.68Urstadt Biddle([UBA](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UBA&selected=UBA)) ) REIT6.6%$0.61$0.96One Liberty Prop.([OLP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OLP&selected=OLP)) ) REIT9.2%$0.63$0.84First Real Estate([FREVS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FREVS&selected=FREVS)) ) REIT7.0%$0.83$1.20Middlefield Banc([MBCN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MBCN&selected=MBCN)) ) Bank6.5%$1.09$1.04Amer. Church Mtg.(Pink: ACMC) REIT19.8%$0.14$0.29Even with a decade of stellar earnings growth behind it, this list is full of landmines. American Church Mortgage Company's nearly 20% yield, for example, isn't very secure. In the past 12 months, the company has paid out more than twice what it has earned, making this company's dividend endangered.Several others are worse. IRET, SUI, EPR, WRE, PVR, and BPL all paid out more than twice what they earned during the past twelve months. Even though **Empire District Electric ([EDE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=EDE&selected=EDE)) )** has paid out slightly more in dividends than it has earned during the past 12 month, it's the winner in this category. A payout ratio of 108%, in the short-term, isn't too concerning, especially when it's a public utility monopoly that has the states it operates in on its side.The company is currently seeking rate increases in several of its coverage areas that will help fill that gap. Earlier this month, it filed a request with the Kansas Corporation Commission to hike electricity rates in Kansas by nearly 25%. And at the end of October, the company filed a request with the Missouri Public Service Commission to hike electricity rates nearly 20%.While customers won't be pleased with any hike, they'll have to find a way to deal with them as there are few other prospects, none of which are more agreeable than installing a wind turbine on the roof.Based in Joplin, Missouri, the Empire District Electric is a century-old $661 million company that provides electricity, natural gas, or water services to some 215,000 customers in Missouri, Kansas, Oklahoma, and Arkansas. Its seven power plants can produce 1,255 megawatts of power for the 121 cities it provides electricity to.The company pays $0.32 per share quarterly for a total of $1.28 yearly. At current prices around $18, it equates to a yield of 7%. It has maintained its dividend at this level since 1992 and has continuously paid dividends since 1944. This is not an exciting stock. With a beta of 0.76, it's significantly less volatile than the S&P 500. But over the past decade it has outperformed the S&P by +44 percentage points.The company's next $0.32 per share dividend will be paid on December 15, 2009 to holders of record as of December 1, 2009.The company offers a dividend reinvestment program through Wells Fargo Bank that provides a 3% discount to the three day average trading price preceding the dividend payment date. For more information on this program, call 800-468-9716 or visit this link.Today, the company is attractively valued. It has a price to earnings of 15.3, a price to book of 1.2, and five-year price to earnings growth of 2.5. With a decade of steady sales growth, this company is positioned to keep pushing out its dividend in nearly any situation. [Image](http://web.streetauthority.com/AH-sig2.gif) Anthony HaddadStaff WriterStreetAuthorityDisclosure: Anthony Haddad does not own shares of any security mentioned in this article. © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | High-Yielders with a Decade of Sales Growth | News | Street Authority | Unknown | 0.0005 | 8.40896 | 8.52645 | 8.52967 | 8.4491 | 8.44986 | 8.44986 | 8.44977 | 8.44986 | 8.44986 | 8.44986 | 8.44986 | 8.48329 | 8.52466 | 8.94724 | 9.04503 | 8.92321 | 8.73572 | 8.35497 |
AMTD | AMTD IDEA Group | Finance | Finance: Consumer Services | https://www.nasdaq.com/articles/next-catalyst-etrade-leaps-2009-11-18 | 2009-11-18 06:03:00 | Markets|SCHW|JPM|WFC | ** [Jason Schwarz](http://web.mac.com/jzapple) submits:**Now that the E*trade ([ETFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETFC&selected=ETFC)) ) acquisition chatter has officially started, I have a few thoughts on the matter:1-The next major catalyst for ETFC is choosing a new CEO. This is one of the hottest jobs on Wall Street and should be in high demand. Whoever comes in will have free reign to get a deal done. There isn't anyone left at Etrade who cares about the company's history or who desperately wants it to remain as a stand alone. [Image](http://static.seekingalpha.com/uploads/2009/11/18/saupload_etfc.png) Current Etrade management appears to welcome a takeover. If Etrade brings in a CEO with experience in coordinating mergers and acquisitions that will be a very good sign. This really is a blockbuster opportunity for a CEO to sign on, get a chunk of stock options, and exit with $20 million worth of gains 6 months from now. 2-I still don't think TD Ameritrade ([AMTD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMTD&selected=AMTD)) ) is the ideal takeover. Because of the mortgage mess on E*trade's books, I see a larger bank being more suited to E*trade. Someone like Wells Fargo ([WFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WFC&selected=WFC)) ) or JP Morgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) or even a regional bank that wants to make a splash in the brokerage business would be a tremendous fit. As a Wells Fargo customer myself, I would be ecstatic to see the E*trade platform become part of the service.3-Don't let the mortgage mess fool you. The E*trade platform is highly sought after. As one who has used TD and Schwab ([SCHW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCHW&selected=SCHW)) ), the E*trade user experience is a breath of fresh air. E*trade is a major player in a quality industry.So what happens next? The acquisition chatter will heat up then it will stall as these things typically do. The key for the new CEO will be to try and get more than one bidder. Who knows, maybe even Citadel will join the bidding process to try and push the price up although recent comments from the hedge fund indicate they are looking to diversify away from large positions in single companies. Investors need to be patient, have a good time horizon, and let the game come to you.Option LEAPS alert: The November [www.economictiming.com](http://www.economictiming.com/) newsletter recommended owning the January 2011 $5 calls. This is a very high risk/high reward position. For those looking for something more secure, look to own the stock itself, or the January 2011 $2.5 strike, or even the April 2010 $1.50 strike. All represent great opportunities as we head into the new year. **Disclosure:**Long ETFCSee also [Traders Getting Bearish on Taiwan](http://seekingalpha.com/article/174163-traders-getting-bearish-on-taiwan?source=nasdaq) on seekingalpha.com | The Next Catalyst for E*Trade LEAPS | News | SeekingAlpha | Unknown | 0.0004 | 21.1552 | 21.0968 | 20.9079 | 21.255 | 21.255 | 21.255 | 21.255 | 21.255 | 21.0283 | 21.0037 | 21 | 21.1899 | 21.1474 | 20.9394 | 20.9293 | 20.9293 | 19.5314 | 18.3097 |
AMTD | AMTD IDEA Group | Finance | Finance: Consumer Services | https://www.nasdaq.com/articles/etrade-takeover-chatter-how-should-investor-respond-2009-11-19 | 2009-11-19 04:03:00 | Markets|SCHW|JPM|WFC | ** [Jason Schwarz](http://web.mac.com/jzapple) submits:**Now that the E*Trade ([ETFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ETFC&selected=ETFC)) ) acquisition chatter has officially started, I have a few thoughts on the matter1) The next major catalyst for ETFC is choosing a new CEO. This is one of the hottest jobs on Wall Street and should be in high demand. Whoever comes in will have free rein to get a deal done. There isn't anyone left at E*Trade who cares about the company's history or who desperately wants it to remain as a stand alone. [Image](http://static.seekingalpha.com/uploads/2009/11/18/saupload_etfc.png) Current E*Trade management appears to welcome a takeover. If E*Trade brings in a CEO with experience in coordinating mergers and acquisitions that will be a very good sign. This really is a blockbuster opportunity for a CEO to sign on, get a chunk of stock options, and exit with $20 million worth of gains 6 months from now. 2) I still don't think TD Ameritrade ([AMTD](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AMTD&selected=AMTD)) ) is the ideal takeover. Because of the mortgage mess on E*Trade's books, I see a larger bank being more suited to E*Trade. Someone like Wells Fargo ([WFC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WFC&selected=WFC)) ) or JP Morgan Chase ([JPM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JPM&selected=JPM)) ) or even a regional bank that wants to make a splash in the brokerage business would be a tremendous fit. As a Wells Fargo customer myself, I would be ecstatic to see the E*Trade platform become part of the service.3) Don't let the mortgage mess fool you. The E*Trade platform is highly sought after. As one who has used TD and Schwab ([SCHW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SCHW&selected=SCHW)) ), the E*Trade user experience is a breath of fresh air. E*Trade is a major player in a quality industry.So what happens next? The acquisition chatter will heat up, then it will stall as these things typically do. The key for the new CEO will be to try and get more than one bidder. Who knows, maybe even Citadel will join the bidding process to try and push the price up although recent comments from the hedge fund indicate they are looking to diversify away from large positions in single companies. Investors need to be patient, have a good time horizon, and let the game come to you.Option LEAPS alert: The November [www.economictiming.com](http://www.economictiming.com/) newsletter recommended owning the January 2011 $5 calls. This is a very high risk/high reward position. For those looking for something more secure, look to own the stock itself, or the January 2011 $2.5 strike, or even the April 2010 $1.50 strike. All represent great opportunities as we head into the new year. **Disclosure:**Long ETFCSee also [Odyssey RE: Inflation and Deflation Protection in One Investment](http://seekingalpha.com/article/176061-odyssey-re-inflation-and-deflation-protection-in-one-investment?source=nasdaq) on seekingalpha.com | E*Trade Takeover Chatter: How Should an Investor Respond? | News | SeekingAlpha | Unknown | 0.0003 | 21.1032 | 20.9079 | 21.2519 | 21.1358 | 21.1487 | 21.1382 | 21.1474 | 21.1474 | 21.1474 | 20.9311 | 20.93 | 21.1065 | 20.9394 | 20.9284 | 21.0191 | 21.0256 | 19.3698 | 18.26 |
DHC | Diversified Healthcare Trust | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/small-high-yielding-company-extremely-undervalued-2009-11-23 | 2009-11-23 02:02:00 | Unknown | Something's got to give. At a time when the aging of the U.S. population is beginning to accelerate, the construction pace of new housing and care facilities for seniors is shrinking.Between 2010 and 2020, the number of Americans 65 and older will grow +36%, compared with a growth rate of 9% for the general population, according to the U.S. Department of Health and Human Services. [Image](http://streetauthority.com/sites/default/files/images/over65-chart-ah1.gif) You'd think we'd be on the verge of a boom in Baby Boomer housing. Yet, construction in the seniors housing sector has nosedived in recent years due to a lack of financing for developers and continued recession-related economic pressures.In the year ended March 31, the number of such units started fell -37% from the previous year, and was down -45% from two years earlier. That, according to a report from the National Investment Center for the Seniors Housing & Care Industry and the American Seniors Housing Association. In fact, the two trade groups termed the amount of construction activity in seniors housing and care since 2000 as "modest" compared with the 1980s and 1990s.In this scenario, the law of supply and demand would seem to favor the supply side. Even if lenders were to start lending again and bulldozers were to start blazing, it would realistically take at least a couple years before the number of new available units would begin to come in line with a growing demand.Short of purchasing a long-term care facility or a medical office building on your own, one way to take advantage of this discrepancy is by buying shares in health care REITS, or real estate investment trusts that own health care properties.Healthcare REITs, like all REITs, have a huge tax advantage. They only pay taxes on earnings they do not pass on to their shareholders. And they must pay at least 90% of their earnings in dividends. This means that REITs often pay huge dividends, but there's a drawback. REITs are usually unable to finance expansion with their operating income, having passed the overwhelming majority on to shareholders. Instead, they have to issue debt and equity to grow. **Company (Ticker)****Market Cap****Yield****P/E****P/B****EPS****Cash****Debt** HCP([HCP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HCP&selected=HCP)) )$8.6B6.2%35.51.5$0.48$144M$5.6BVentas ([VTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VTR&selected=VTR)) )$6.6B4.9%30.72.6$1.82$71M$2.6BHealth Care REIT([HCN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HCN&selected=HCN)) )$5.3B6.3%24.11.5$1.48$102M$2.4BNationwide Health Properties ([SNH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNH&selected=SNH)) )$2.5B7.4%17.81.3$0.93$72M$984MOmega Healthcare Investors ([OHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OHI&selected=OHI)) )$1.5B6.6%20.12.2$0.90$0.7M$493MNational Health Investors ([NHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NHI&selected=NHI)) )$901M6.7%15.52.1$2.20$64M$1MMedical Properties Trust([MPW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MPW&selected=MPW)) )$759M8.5%22.51.1$0.39$13M$566MLTC Properties ([LTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTC&selected=LTC)) )$591M6.1%20.72.2$1.23$5M$11MUniversal Health Income Trust([UHT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UHT&selected=UHT)) )$371M7.6%20.92.7$1.10$2M$84MOne healthcare REIT that stands out: **National Health Investors ([NHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NHI&selected=NHI)) )** . NHI yields 6.7% and is cheap compared with its peers. It's also in a great cash and debt position, giving it plenty of room to grow. National Health Investors is one of just 125 profitable U.S. companies that over the past year have decreased their debt by more than -50% without increasing their number of shares outstanding. And it's the only one that has accomplished this financial feat that has a dividend yield of more than 6%. Its debt is now just $1.4 million -- about 2% of the cash it has on hand.This $900 million company purchases and leases health care real estate and makes mortgage loans to health care operators. Founded in 1991, the company now has 130 health care facilities in 18 states. These facilities are predominantly long-term care facilities and assisted living facilities, but include residential projects for the developmentally disabled, medical office buildings, retirement centers, and a hospital.The company currently pays a $0.55 per quarter dividend, totaling $2.20 per year, for a dividend yield of 6.7%. In December, the company also pays a variable cash dividend. Last year, the variable dividend was $0.14, pushing its historical yield to 7.2%.For the third quarter ended Sept. 30, 2009, National Health Investors saw revenues of $19.6 million, up +26% from the same period last year. The bulk of this gain came from rental income, while its income from mortgage interest gained only slightly. Net income for the quarter was up about 10%.Not only has National Health Investors been putting up great numbers, very few have noticed. Its price to earnings ratio is still a measly 15.7. That's a full ten points below its peer average of 26.0. And the company's forward price to earnings ratio is an even lower 12.8. On a price to book basis, it's also reasonably valued at 2.1. During the past year, National Health Investors has paid off 85% of its debt, which now totals just $1.4 million. It did this without issuing new shares. This puts the company in a great position to acquire new properties going forward. It also has an excellent cash position with about $64.0 million at the end of the Sept. 30 quarter.National Health Investors last week announced it spent $28.25 million on five assisted living facilities from Bickford Senior Living, which is also leasing the properties back from National Health Investors for the next 15 years. The company said that this investment will return a double-digit yield during the life of the lease.This is the best healthcare REIT out there. It's undervalued and underappreciated. For the price, it's an absolute steal. If it keeps posting outstanding results, it won't be for long. [Image](http://web.streetauthority.com/AH-sig2.gif) Anthony HaddadStaff WriterStreetAuthorityDisclosure: Anthony Haddad does not own shares of any security mentioned in this article. © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | This Small, High-Yielding Company is Extremely Undervalued | News | Street Authority | Unknown | 0.0005 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
LTC | LTC Properties, Inc. | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/small-high-yielding-company-extremely-undervalued-2009-11-23 | 2009-11-23 02:02:00 | NHI|Markets|CSA|OHI|HCP|MPW|DHC|HR|VTR|UHT | Something's got to give. At a time when the aging of the U.S. population is beginning to accelerate, the construction pace of new housing and care facilities for seniors is shrinking.Between 2010 and 2020, the number of Americans 65 and older will grow +36%, compared with a growth rate of 9% for the general population, according to the U.S. Department of Health and Human Services. [Image](http://streetauthority.com/sites/default/files/images/over65-chart-ah1.gif) You'd think we'd be on the verge of a boom in Baby Boomer housing. Yet, construction in the seniors housing sector has nosedived in recent years due to a lack of financing for developers and continued recession-related economic pressures.In the year ended March 31, the number of such units started fell -37% from the previous year, and was down -45% from two years earlier. That, according to a report from the National Investment Center for the Seniors Housing & Care Industry and the American Seniors Housing Association. In fact, the two trade groups termed the amount of construction activity in seniors housing and care since 2000 as "modest" compared with the 1980s and 1990s.In this scenario, the law of supply and demand would seem to favor the supply side. Even if lenders were to start lending again and bulldozers were to start blazing, it would realistically take at least a couple years before the number of new available units would begin to come in line with a growing demand.Short of purchasing a long-term care facility or a medical office building on your own, one way to take advantage of this discrepancy is by buying shares in health care REITS, or real estate investment trusts that own health care properties.Healthcare REITs, like all REITs, have a huge tax advantage. They only pay taxes on earnings they do not pass on to their shareholders. And they must pay at least 90% of their earnings in dividends. This means that REITs often pay huge dividends, but there's a drawback. REITs are usually unable to finance expansion with their operating income, having passed the overwhelming majority on to shareholders. Instead, they have to issue debt and equity to grow. **Company (Ticker)****Market Cap****Yield****P/E****P/B****EPS****Cash****Debt** HCP([HCP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HCP&selected=HCP)) )$8.6B6.2%35.51.5$0.48$144M$5.6BVentas ([VTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VTR&selected=VTR)) )$6.6B4.9%30.72.6$1.82$71M$2.6BHealth Care REIT([HCN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HCN&selected=HCN)) )$5.3B6.3%24.11.5$1.48$102M$2.4BNationwide Health Properties ([SNH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNH&selected=SNH)) )$2.5B7.4%17.81.3$0.93$72M$984MOmega Healthcare Investors ([OHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OHI&selected=OHI)) )$1.5B6.6%20.12.2$0.90$0.7M$493MNational Health Investors ([NHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NHI&selected=NHI)) )$901M6.7%15.52.1$2.20$64M$1MMedical Properties Trust([MPW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MPW&selected=MPW)) )$759M8.5%22.51.1$0.39$13M$566MLTC Properties ([LTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTC&selected=LTC)) )$591M6.1%20.72.2$1.23$5M$11MUniversal Health Income Trust([UHT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UHT&selected=UHT)) )$371M7.6%20.92.7$1.10$2M$84MOne healthcare REIT that stands out: **National Health Investors ([NHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NHI&selected=NHI)) )** . NHI yields 6.7% and is cheap compared with its peers. It's also in a great cash and debt position, giving it plenty of room to grow. National Health Investors is one of just 125 profitable U.S. companies that over the past year have decreased their debt by more than -50% without increasing their number of shares outstanding. And it's the only one that has accomplished this financial feat that has a dividend yield of more than 6%. Its debt is now just $1.4 million -- about 2% of the cash it has on hand.This $900 million company purchases and leases health care real estate and makes mortgage loans to health care operators. Founded in 1991, the company now has 130 health care facilities in 18 states. These facilities are predominantly long-term care facilities and assisted living facilities, but include residential projects for the developmentally disabled, medical office buildings, retirement centers, and a hospital.The company currently pays a $0.55 per quarter dividend, totaling $2.20 per year, for a dividend yield of 6.7%. In December, the company also pays a variable cash dividend. Last year, the variable dividend was $0.14, pushing its historical yield to 7.2%.For the third quarter ended Sept. 30, 2009, National Health Investors saw revenues of $19.6 million, up +26% from the same period last year. The bulk of this gain came from rental income, while its income from mortgage interest gained only slightly. Net income for the quarter was up about 10%.Not only has National Health Investors been putting up great numbers, very few have noticed. Its price to earnings ratio is still a measly 15.7. That's a full ten points below its peer average of 26.0. And the company's forward price to earnings ratio is an even lower 12.8. On a price to book basis, it's also reasonably valued at 2.1. During the past year, National Health Investors has paid off 85% of its debt, which now totals just $1.4 million. It did this without issuing new shares. This puts the company in a great position to acquire new properties going forward. It also has an excellent cash position with about $64.0 million at the end of the Sept. 30 quarter.National Health Investors last week announced it spent $28.25 million on five assisted living facilities from Bickford Senior Living, which is also leasing the properties back from National Health Investors for the next 15 years. The company said that this investment will return a double-digit yield during the life of the lease.This is the best healthcare REIT out there. It's undervalued and underappreciated. For the price, it's an absolute steal. If it keeps posting outstanding results, it won't be for long. [Image](http://web.streetauthority.com/AH-sig2.gif) Anthony HaddadStaff WriterStreetAuthorityDisclosure: Anthony Haddad does not own shares of any security mentioned in this article. © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | This Small, High-Yielding Company is Extremely Undervalued | News | Street Authority | Unknown | 0.0005 | 25.7342 | 27.583 | 25.8012 | 26.8219 | 26.8219 | 26.8219 | 26.8219 | 26.8219 | 26.8219 | 26.8219 | 25.9959 | 25.9626 | 25.8905 | 26.0351 | 24.7648 | 25.2177 | 27.4153 | 27.5045 |
UHT | Universal Health Realty Income Trust | Real Estate | Real Estate Investment Trusts | https://www.nasdaq.com/articles/small-high-yielding-company-extremely-undervalued-2009-11-23 | 2009-11-23 02:02:00 | NHI|Markets|CSA|OHI|HCP|LTC|MPW|DHC|HR|VTR | Something's got to give. At a time when the aging of the U.S. population is beginning to accelerate, the construction pace of new housing and care facilities for seniors is shrinking.Between 2010 and 2020, the number of Americans 65 and older will grow +36%, compared with a growth rate of 9% for the general population, according to the U.S. Department of Health and Human Services. [Image](http://streetauthority.com/sites/default/files/images/over65-chart-ah1.gif) You'd think we'd be on the verge of a boom in Baby Boomer housing. Yet, construction in the seniors housing sector has nosedived in recent years due to a lack of financing for developers and continued recession-related economic pressures.In the year ended March 31, the number of such units started fell -37% from the previous year, and was down -45% from two years earlier. That, according to a report from the National Investment Center for the Seniors Housing & Care Industry and the American Seniors Housing Association. In fact, the two trade groups termed the amount of construction activity in seniors housing and care since 2000 as "modest" compared with the 1980s and 1990s.In this scenario, the law of supply and demand would seem to favor the supply side. Even if lenders were to start lending again and bulldozers were to start blazing, it would realistically take at least a couple years before the number of new available units would begin to come in line with a growing demand.Short of purchasing a long-term care facility or a medical office building on your own, one way to take advantage of this discrepancy is by buying shares in health care REITS, or real estate investment trusts that own health care properties.Healthcare REITs, like all REITs, have a huge tax advantage. They only pay taxes on earnings they do not pass on to their shareholders. And they must pay at least 90% of their earnings in dividends. This means that REITs often pay huge dividends, but there's a drawback. REITs are usually unable to finance expansion with their operating income, having passed the overwhelming majority on to shareholders. Instead, they have to issue debt and equity to grow. **Company (Ticker)****Market Cap****Yield****P/E****P/B****EPS****Cash****Debt** HCP([HCP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HCP&selected=HCP)) )$8.6B6.2%35.51.5$0.48$144M$5.6BVentas ([VTR](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=VTR&selected=VTR)) )$6.6B4.9%30.72.6$1.82$71M$2.6BHealth Care REIT([HCN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HCN&selected=HCN)) )$5.3B6.3%24.11.5$1.48$102M$2.4BNationwide Health Properties ([SNH](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=SNH&selected=SNH)) )$2.5B7.4%17.81.3$0.93$72M$984MOmega Healthcare Investors ([OHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=OHI&selected=OHI)) )$1.5B6.6%20.12.2$0.90$0.7M$493MNational Health Investors ([NHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NHI&selected=NHI)) )$901M6.7%15.52.1$2.20$64M$1MMedical Properties Trust([MPW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=MPW&selected=MPW)) )$759M8.5%22.51.1$0.39$13M$566MLTC Properties ([LTC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LTC&selected=LTC)) )$591M6.1%20.72.2$1.23$5M$11MUniversal Health Income Trust([UHT](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=UHT&selected=UHT)) )$371M7.6%20.92.7$1.10$2M$84MOne healthcare REIT that stands out: **National Health Investors ([NHI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=NHI&selected=NHI)) )** . NHI yields 6.7% and is cheap compared with its peers. It's also in a great cash and debt position, giving it plenty of room to grow. National Health Investors is one of just 125 profitable U.S. companies that over the past year have decreased their debt by more than -50% without increasing their number of shares outstanding. And it's the only one that has accomplished this financial feat that has a dividend yield of more than 6%. Its debt is now just $1.4 million -- about 2% of the cash it has on hand.This $900 million company purchases and leases health care real estate and makes mortgage loans to health care operators. Founded in 1991, the company now has 130 health care facilities in 18 states. These facilities are predominantly long-term care facilities and assisted living facilities, but include residential projects for the developmentally disabled, medical office buildings, retirement centers, and a hospital.The company currently pays a $0.55 per quarter dividend, totaling $2.20 per year, for a dividend yield of 6.7%. In December, the company also pays a variable cash dividend. Last year, the variable dividend was $0.14, pushing its historical yield to 7.2%.For the third quarter ended Sept. 30, 2009, National Health Investors saw revenues of $19.6 million, up +26% from the same period last year. The bulk of this gain came from rental income, while its income from mortgage interest gained only slightly. Net income for the quarter was up about 10%.Not only has National Health Investors been putting up great numbers, very few have noticed. Its price to earnings ratio is still a measly 15.7. That's a full ten points below its peer average of 26.0. And the company's forward price to earnings ratio is an even lower 12.8. On a price to book basis, it's also reasonably valued at 2.1. During the past year, National Health Investors has paid off 85% of its debt, which now totals just $1.4 million. It did this without issuing new shares. This puts the company in a great position to acquire new properties going forward. It also has an excellent cash position with about $64.0 million at the end of the Sept. 30 quarter.National Health Investors last week announced it spent $28.25 million on five assisted living facilities from Bickford Senior Living, which is also leasing the properties back from National Health Investors for the next 15 years. The company said that this investment will return a double-digit yield during the life of the lease.This is the best healthcare REIT out there. It's undervalued and underappreciated. For the price, it's an absolute steal. If it keeps posting outstanding results, it won't be for long. [Image](http://web.streetauthority.com/AH-sig2.gif) Anthony HaddadStaff WriterStreetAuthorityDisclosure: Anthony Haddad does not own shares of any security mentioned in this article. © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | This Small, High-Yielding Company is Extremely Undervalued | News | Street Authority | Unknown | 0.0005 | 31.5673 | 31.5002 | 31.5309 | 31.5404 | 31.5404 | 31.5404 | 31.5404 | 31.5404 | 31.5404 | 31.5404 | 31.7928 | 31.6227 | 31.4307 | 31.7613 | 31.3322 | 30.9355 | 31.2402 | 30.9822 |
GCI | Gannett Co., Inc. | Consumer Discretionary | Newspapers/Magazines | https://www.nasdaq.com/articles/tortoise-and-hare-2009-12-01 | 2009-12-01 02:03:00 | CAAPX|Markets|JWN|ACN | No matter how many times you reread Aesop's famous fable, the plodding patience of the tortoise always bests the hare. That's why when John W. Rogers Jr. founded Ariel Investments he decided the tortoise was the most emblematic of his methodical and slightly contrarian approach to long-term investing. **Ariel Appreciation** ([CAAPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAAPX&selected=CAAPX)) ) is celebrating its 20th anniversary this year, but when we sat down with John and new portfolio manager Timothy Fidler, the two focused on their investment strategy and favorite themes--not the fund's track record of success. **The fund's amassed an impressive track record since its inception. What's the secret to your success?** **John:** We are a value-oriented firm that has always focused on buying companies when they're out of favor. For patient investors with a long time horizon, it pays to invest in the small and midsized companies that the market kind of hates.What differentiates us from other value funds is that we concentrate on a few industries and relatively few names. We believe what Charlie Munger talks about every year at Berkshire Hathaway's (NYSE: BRK.A) annual meeting; you want to stay within your circle of competence and become an expert in the industries and companies that populate your portfolio.We often buy stocks when something isn't quite right at a company--for example, it faces a temporary problem or a subsidiary causes trouble--but we think it will ultimately overcome these hurdles and become a higher-quality name. We're willing to look out two to three years and bet that once things get back to normal these companies will be able to outperform. **Tim:** We're patient investors who expect to own stocks for three to five years. Over that period, management can have an enormous effect on the direction and value of a business. We spend an enormous amount of time getting to know each company's management team and sizing up whether they're good stewards of shareholder's capital. ******This approach has led you to some out-of-favor industries, such as media and commercial real estate. What's the logic behind these moves?** **John:** Last year was the opportunity of a lifetime for value-oriented investors, though buying stocks at low prices didn't work for a bit. You'd buy a stock, and it would go down; you'd buy more, and it got cheaper still. Credit markets froze, so any names with debt burdens got clobbered. And forced selling by hedge funds created drama when there really wasn't any, so what was an $18 stock plummeted to $3. The market abandoned rationality.Last March we became more aggressive in our purchases because we knew the economy would recover and wanted to add the names within our circle of competence that stood to benefit. We picked up some great stocks that we never thought would sink to bargain levels--for example, media giant **CBS Corp** ([CBS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBS&selected=CBS)) ) and high-end retailer **Nordstrom** ([JWN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JWN&selected=JWN)) ).In times of crisis focusing on your core competencies is essential to making good decisions; if you lack conviction, you're more likely to be paralyzed by indecision. Because we knew our stories well, we were willing to buy when panic reigned. **But media companies are struggling, regardless of the recovery. How does that sector fit into your thinking on quality?****John:** We spend a lot of time with **Gannett's** ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ) management and believe in what they're doing. But that business doesn't have to return to its glory days. If it attracts a fair share of advertising revenue as the economy recovers, aggressive cost reductions and lower newsprint prices will enable Gannett's earnings to surprise on the upside. Analysts have been negative on the sector for so long and aren't factoring in the benefits that will accrue from any improvement in the economy. Already a lot of the big retailers are advertising more aggressively on TV and in print. These days when I pick up my newspaper I see much more advertising. We're hearing that advertising rates are improving not only from newspapers but also from several media companies that we talk to.Buying quality stocks when there's maximum pessimism has always made sense because once everyone gives up on a stock, groupthink takes over and share prices sink lower than they should--people lose sight of a possible recovery. **Do you have any favorite stocks?****John:** CBS Corp is one of my favorites. The media giant should benefit from the economy's inevitable recovery and an uptick in advertising. General Motors' CEO is selling cars on TV, next year is an election year and advertising prices are on the mend. There's a lot of positive momentum building, and companies will pay to put their products in front of the eyeballs that watch highly rated CBS shows like CSI, Survivor and The Amazing Race.And investors often forget about CBS' other businesses--for example, King World Productions, which distributes Oprah, Wheel of Fortune and Jeopardy. I often joke that I'm the only fund manager who's been able to perform due diligence on two of these shows; I was a contestant on Wheel of Fortune in my youth, and I've appeared on Oprah several times. Showtime Networks is another important CBS franchise. And CBS operates 137 radio stations, boasts a valuable programming library and is one of the largest billboard owners in the US. The company also has a lot of exciting Internet opportunities on the horizon. CBS is one name that we're going to stick with for the long run. **Tim: Hewitt Associates** ([HEW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HEW&selected=HEW)) ) is the world's leading outsourcer and human resources firm; it's been around since 1940 and has a tremendous brand. The firm generates a high level of recurring revenue thanks to a client retention rate that exceeds 90 percent. And half of the Fortune 500 companies do business with Hewitt. Nevertheless, the market soured on the company because its business process outsourcing operations--a small-scale business--was losing money in a dramatic way. Negative sentiment brought the stock from the mid-$30s to the teens, at which point we decided to make our move. If you look at the value of the consulting business, which only has three other competitors and a well-established market share, and then look at its outsourcing business, which had some pretty big competitors walk away from the market, you got the sense that the market had overreacted to a fixable problem in one business line.We scrutinized the company's balance sheet and found that Hewitt was one of the few names that had a net cash position and was actively buying back shares. Operating a consulting firm isn't capital intensive, so the business generated high returns on capital and high margins.We've owned shares of **Accenture** ([ACN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACN&selected=ACN)) ) for almost 10 years, and I've covered the consulting space throughout my tenure at Ariel; when we took out our stake in Hewitt, we felt confident in our appraisal of where the company would be in the next five years.And from a valuation perspective, Hewitt's shares trade at 10 times free cash flow and 13 times earnings. Right now the stock's above $41, and we rate its value somewhere in the mid-$50s. Not only is it cheap on a trading basis, but if you look at the assets and what acquiring firms have been willing to pay for similar businesses, you get a stock price that's well into the $50s. **What's your best advice for individual investors?****John:** Stay the course. There's a lot of skepticism about this rally, and I think people are tempted take profits and err on the side of caution. But I believe that this economic recovery is going to be much stronger than people anticipate, and the upside for a lot of the names that are tied to the recovery is much higher than people expect. Now's the time to stick with equities for the long run. [Image](http://kr.nlh1.com/images/200912/ariel_p5.gif) Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/) | The Tortoise and the Hare | News | Investing Daily | Unknown | 0.0009 | 10.3239 | 10.331 | 10.3287 | 9.94229 | 9.94091 | 9.94091 | 9.94223 | 9.94229 | 9.94091 | 9.94091 | 9.8227 | 10.1418 | 9.99598 | 9.96148 | 10.1621 | 10.23 | 14.2 | 14.99 |
ODC | Oil-Dri Corporation of America | Consumer Discretionary | Miscellaneous manufacturing industries | https://www.nasdaq.com/articles/more-meets-eye-2009-12-14 | 2009-12-14 07:00:00 | ICMAX|Markets|WSFL|STZ|TDW | Many investors regard small-cap stocks as highly volatile growth plays, but this broad category is far more variegated than this stereotype would suggest. We recently spoke with Eric Cinnamond, manager ofIntrepid Small Cap ([ICMAX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ICMAX&selected=ICMAX)) ), whose stock-picking acumen propelled the fund to the top of Morningstar's Small Value category in 2007 and 2008. Here Eric discusses his investment strategy and the dangers of judging a small-cap stock by its classification. **What's your strategy when it comes to equities selection?**We take a bottom-up approach to investing that emphasizes fundamental analysis and valuation work, but we don't use sell-side research. We focus on absolute returns and don't worry about benchmarks and sector weights, which makes us a bit more flexible than the typical fund and allows us to gravitate to whatever names offer value. We evaluate stocks by discounting free cash flow, though we value the assets of energy firms, financial companies and other asset-heavy businesses. We tend to focus on established companies that generate a lot of cash and have weathered a lot of economic cycles, qualities that enable us to have a high degree of confidence in our valuations. We find that if you keep the ball on the fairway you tend to do much better than swinging for the fences; we don't hit a lot of homeruns, but we also don't strike out a lot.We generate our returns through a thoughtful, slow-and-steady type of investment strategy that isn't overly complicated--though it can be hard to stick to, especially during speculative periods. Back in 2007 leveraged-buyout firms were paying outrageous prices for mundane businesses, extrapolating crazy earnings growth or extremely low financial costs over a long period. Of course, that approach backfired in late 2008. **Speaking of hysteria, there was a huge run in small-cap stocks through much of 2009. What drove that?**Small-cap stocks traded at incredibly low values in March 2009, when the Russell 3000 sank to roughly 350 from a peak of 850. At that time, we found a boatload of good values because many investors acted as though the economy were dead and would never to operate again. Given the degree of overreaction on the downside, a lot of the rebound struck us as quite rational--a return to fair value. Today small-cap stocks trade at fair value, though some segments may be slightly overvalued. We're still finding opportunities, but it's definitely not as easy as it was.I think speculation is definitely the culprit if stock prices head 20 to 30 percent higher from current levels. Market cycles are so compressed, and memories are getting shorter and shorter--you had the tech bubble, the housing bubble and oil at USD140--so I wouldn't rule out another speculative period. And I think investors are almost conditioned to expect another bubble; given the prevalence of the word these days, it's seemingly a permanent feature of the new landscape. Although the stocks that we choose to include in our portfolio are a big part of the fund's success, it's important to remember that selectivity also implies avoiding certain stocks or industries.We steered clear of banks and didn't have any energy or cyclical companies in mid-2008, when that group was in vogue. Then energy names made up almost 23 percent of the portfolio at one point in late 2008; we had moved into cyclical names because those were getting hit the hardest and that's where we were finding value. Uncharacteristically, we also found value in companies with debt--a quality we typically avoid. These were ideas we usually wouldn't pursue, but the discounts were so large we thought the potential upside was worthwhile.That being said, when we buy energy companies or stocks issued by companies with debt, we never take on operating and financial risk at the same time.We built a stake in an energy company called **Tidewater** ([TDW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=TDW&selected=TDW)) ), which has no debt net of cash. This limited financial risk was offset by operating risk; Tidewater's business is relatively volatile, and its stream of cash flow can range between USD2 and USD8.On the other side, we bought **Constellation Brands** ([STZ](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=STZ&selected=STZ)) ), the market leader in wine. Constellation has some debt exposure, but US wine consumption is growing 2 to 3 percent per year. In this instance, the financial risk is offset by the steady nature of the company's business. Higher-risk cyclical names have rallied the most this year, and we've recently sold those that hit our valuation targets. Our most recent ideas have been in line with our long-term strategy of investing in companies that boast a strong balance sheet, generate ample free cash flow and operate in relatively stable end markets--boring stuff, but it works. **Your portfolio features a lot stocks that are typically classified as early-cycle investments. What's your take on the recovery and its sustainability?**A lot of small caps are in unique industries and don't really fit neatly into a classification scheme. One of the stocks we own is **Oil-Dri Corp of America** ([ODC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ODC&selected=ODC)) ), which falls into the consumer discretionary or industrial category. One could also argue that it's a mining company. The firm mines clay, dries it, and then processes it into cat litter. To me, that's a consumer staple. I have a cat and, believe me, you have to buy cat litter; you will not like the results if you replace it with paper litter. **PetSmart** ([PETM](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=PETM&selected=PETM)) ) is one discretionary name that continues to generate quite a bit of cash. It's slowed its growth from 100 stores a year to 40 stores, transforming itself into a cash cow rather than a growth company. But the specialty retailer's comparable sales have remained positive--hardly what one would expect from a consumer-discretionary name.Another example is **Core-Mark Holding Company** ([CORE](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CORE&selected=CORE)) ), the second-largest distributor to convenience stores. Over the past 10 years it has grown sales to convenience stores over 7 percent annually. Nevertheless, it's often categorized as a transportation company--even though it lacks the high capital expenditures and volatile day rates and utilization that are part and parcel to that business segment. It's not as risky as the transportation label would suggest. Our investments in the energy patch are another case where there's more than meets the eye. Because we focus on companies with the strongest balance sheets, our holdings are less volatile than other names with levered balance sheets. Regardless of where we are in the economic cycle, Tidewater will continue its steady performance and its long-lived assets will only increase in value. We always lean toward lower-risk plays, but sometimes an industry pie chart doesn't capture that lower risk portfolio.Because of our efforts to limit risk while generating total returns, the fund has posted a negative annual return on only one occasion: The market turmoil of 2008 resulted in a 7 percent loss. Of course, this approach also limits our upside. If the markets were to go up 20 to 30 percent, I would expect our fund to lag. However, thus far in 2009 we've outperformed, which is unusual for us; because so many high-quality names traded at a discount, we were more aggressive than usual in our investments. **The fund is still extremely light on banks. Is there just not any value there?**I recently bought my first bank stock in about five years when I added **Washington Federal** ([WSFL](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=WSFL&selected=WSFL)) ). It's got no subprime exposure and had equity to assets of around 15 percentDespite having loads of capital, they participated in the Treasury Dept's Troubled Asset Relief Program to establish their strength; once management realized that participation in the bailout wasn't necessarily a sign of health, the bank quickly repaid the government. Washington Federal was one of the first banks to tell the truth about its book of business, quickly classifying loans as nonperforming. This high number of nonperforming loans has declined fairly quickly. The banks I'm skeptical of are the ones with low loan losses and low loan-loss provisions; I just don't believe them. The banks are so hard to value because they lump so many assets under one category that it's really hard to decipher the quality of their books. ******What's your best advice for investors over the next year?**Be careful, the time to take risk was 6 to twelve months ago. Patience is the most important virtue for successful investors. [Image](http://kr.nlh1.com/images/201001/intrepid_p5.gif) Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/) | More Than Meets the Eye | News | Investing Daily | Unknown | 0.0002 | 15.4004 | 15.3625 | 15.4311 | 15.4267 | 15.4267 | 15.4267 | 15.4267 | 15.4267 | 15.3927 | 15.4523 | 15.5147 | 15.8117 | 15.8318 | 15.4562 | 15.4042 | 15.4667 | 15.5062 | 16.145 |
GCI | Gannett Co., Inc. | Consumer Discretionary | Newspapers/Magazines | https://www.nasdaq.com/articles/tortoise-and-hare-2009-12-22 | 2009-12-22 07:00:00 | CAAPX|Markets|JWN|ACN | **Ariel Appreciation** ([CAAPX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CAAPX&selected=CAAPX)) ) is celebrating its 20th anniversary this year, but when we sat down with John and new portfolio manager Timothy Fidler, the two focused on their investment strategy and favorite themes--not the fund's track record of success. **The fund's amassed an impressive track record since its inception. What's the secret to your success?** **John:** We are a value-oriented firm that has always focused on buying companies when they're out of favor. For patient investors with a long time horizon, it pays to invest in the small and midsized companies that the market kind of hates.What differentiates us from other value funds is that we concentrate on a few industries and relatively few names. We believe what Charlie Munger talks about every year at Berkshire Hathaway's (NYSE: BRK.A) annual meeting; you want to stay within your circle of competence and become an expert in the industries and companies that populate your portfolio.We often buy stocks when something isn't quite right at a company--for example, it faces a temporary problem or a subsidiary causes trouble--but we think it will ultimately overcome these hurdles and become a higher-quality name. We're willing to look out two to three years and bet that once things get back to normal these companies will be able to outperform. **Tim:** We're patient investors who expect to own stocks for three to five years. Over that period, management can have an enormous effect on the direction and value of a business. We spend an enormous amount of time getting to know each company's management team and sizing up whether they're good stewards of shareholder's capital. ******This approach has led you to some out-of-favor industries, such as media and commercial real estate. What's the logic behind these moves?** **John:** Last year was the opportunity of a lifetime for value-oriented investors, though buying stocks at low prices didn't work for a bit. You'd buy a stock, and it would go down; you'd buy more, and it got cheaper still. Credit markets froze, so any names with debt burdens got clobbered. And forced selling by hedge funds created drama when there really wasn't any, so what was an $18 stock plummeted to $3. The market abandoned rationality.Last March we became more aggressive in our purchases because we knew the economy would recover and wanted to add the names within our circle of competence that stood to benefit. We picked up some great stocks that we never thought would sink to bargain levels--for example, media giant **CBS Corp** ([CBS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=CBS&selected=CBS)) ) and high-end retailer **Nordstrom** ([JWN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=JWN&selected=JWN)) ).In times of crisis focusing on your core competencies is essential to making good decisions; if you lack conviction, you're more likely to be paralyzed by indecision. Because we knew our stories well, we were willing to buy when panic reigned. **But media companies are struggling, regardless of the recovery. How does that sector fit into your thinking on quality?****John:** We spend a lot of time with **Gannett's** ([GCI](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GCI&selected=GCI)) ) management and believe in what they're doing. But that business doesn't have to return to its glory days. If it attracts a fair share of advertising revenue as the economy recovers, aggressive cost reductions and lower newsprint prices will enable Gannett's earnings to surprise on the upside. Analysts have been negative on the sector for so long and aren't factoring in the benefits that will accrue from any improvement in the economy. Already a lot of the big retailers are advertising more aggressively on TV and in print. These days when I pick up my newspaper I see much more advertising. We're hearing that advertising rates are improving not only from newspapers but also from several media companies that we talk to.Buying quality stocks when there's maximum pessimism has always made sense because once everyone gives up on a stock, groupthink takes over and share prices sink lower than they should--people lose sight of a possible recovery. **Do you have any favorite stocks?****John:** CBS Corp is one of my favorites. The media giant should benefit from the economy's inevitable recovery and an uptick in advertising. General Motors' CEO is selling cars on TV, next year is an election year and advertising prices are on the mend. There's a lot of positive momentum building, and companies will pay to put their products in front of the eyeballs that watch highly rated CBS shows like CSI, Survivor and The Amazing Race.And investors often forget about CBS' other businesses--for example, King World Productions, which distributes Oprah, Wheel of Fortune and Jeopardy. I often joke that I'm the only fund manager who's been able to perform due diligence on two of these shows; I was a contestant on Wheel of Fortune in my youth, and I've appeared on Oprah several times. Showtime Networks is another important CBS franchise. And CBS operates 137 radio stations, boasts a valuable programming library and is one of the largest billboard owners in the US. The company also has a lot of exciting Internet opportunities on the horizon. CBS is one name that we're going to stick with for the long run. **Tim: Hewitt Associates** ([HEW](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=HEW&selected=HEW)) ) is the world's leading outsourcer and human resources firm; it's been around since 1940 and has a tremendous brand. The firm generates a high level of recurring revenue thanks to a client retention rate that exceeds 90 percent. And half of the Fortune 500 companies do business with Hewitt. Nevertheless, the market soured on the company because its business process outsourcing operations--a small-scale business--was losing money in a dramatic way. Negative sentiment brought the stock from the mid-$30s to the teens, at which point we decided to make our move. If you look at the value of the consulting business, which only has three other competitors and a well-established market share, and then look at its outsourcing business, which had some pretty big competitors walk away from the market, you got the sense that the market had overreacted to a fixable problem in one business line.We scrutinized the company's balance sheet and found that Hewitt was one of the few names that had a net cash position and was actively buying back shares. Operating a consulting firm isn't capital intensive, so the business generated high returns on capital and high margins.We've owned shares of **Accenture** ([ACN](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=ACN&selected=ACN)) ) for almost 10 years, and I've covered the consulting space throughout my tenure at Ariel; when we took out our stake in Hewitt, we felt confident in our appraisal of where the company would be in the next five years.And from a valuation perspective, Hewitt's shares trade at 10 times free cash flow and 13 times earnings. Right now the stock's above $41, and we rate its value somewhere in the mid-$50s. Not only is it cheap on a trading basis, but if you look at the assets and what acquiring firms have been willing to pay for similar businesses, you get a stock price that's well into the $50s. **What's your best advice for individual investors?****John:** Stay the course. There's a lot of skepticism about this rally, and I think people are tempted take profits and err on the side of caution. But I believe that this economic recovery is going to be much stronger than people anticipate, and the upside for a lot of the names that are tied to the recovery is much higher than people expect. Now's the time to stick with equities for the long run. This article first appeared in the December 2009 issue of [Louis Rukeyser's Mutual Funds](http://www.rukeyser.com/newsletter_online/newsletters.asp). LRMF Editor Benjamin Shepherd is also associate editor of PF . Article Republished with permission from [www.KCIinvesting.com](http://www.kciinvesting.com/) and [www.rukeyser.com](http://www.rukeyser.com/) | The Tortoise and the Hare | News | Investing Daily | Unknown | 0.0001 | 14.2485 | 14.0744 | 14.074 | 13.921 | 13.921 | 13.921 | 13.921 | 13.921 | 13.8972 | 14.0101 | 14.24 | 14.3716 | 14.6411 | 15.5316 | 15.7552 | 15.7552 | 16.1607 | 15.9571 |
DO | Diamond Offshore Drilling, Inc. | Unknown | Unknown | https://www.nasdaq.com/articles/ten-stocks-gains-ages-2009-12-31 | 2009-12-31 05:38:00 | GS|Markets|F|GOOG|AXP|FCX|AAPL|THC | When 2008 ended with a -37.0% loss in the S&P 500, investors didn't have a lot of good news to share.But 2009, happily, proved to be a comeback year, with the benchmark index gaining +23.5% and many stocks gaining much more than that. The highlights of the year that closed the millennium's first decade are a guy named Madoff, the $787 billion stimulus package and a rebound off the worst lows many of us are likely to see in a lifetime. Amid the tumult, these ten companies inked remarkable gains. Here's a look at what they did right, what's next, and if these companies belong in your portfolio in the New Year:**Tenet Health Care ([THC](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=THC&selected=THC)) )** - 2009 Performance +368.7% (2008: -77.4%) What Went Right: Hospital operator Tenet managed a decent turnaround with two strong quarters, which was good enough news to allow its shares to pick up some lost ground after the company was caught in the credit crunch. Tenet began to pick up ground with the rest of the sector as the health-care bill took shape. Hospitals, for their part, eat a tremendous amount of losses when uninsured patients stiff them for treatment, and any steps to bolster Americans' health coverage is likely to add directly to their bottom lines.What's Next: The health care bill has passed the House and the Senate and the differences still need to be ironed out.Verdict: Tenet made it through a rough patch and deserves some applause for its performance, but its shares are fairly valued. Investors who buy these shares now are likely to be disappointed. **Apple (Nasdaq: AAPL)** - 2009 Performance: +126.0% (2008: -56.9%) What Went Right: Everything. The year started with concerns about CEO Steve Jobs' health. He took a medical leave and announced after the fact that he'd had a successful liver transplant. His absence didn't seem to hurt anything: Mac sales totaled $13.8 billion in the fiscal year ended Oct. 31, with iPod sales totaling $8.1 billion and the iPhone bringing in $6.8 billion. Apple sold $4.0 billion worth of music and $2.4 billion worth of software -- or, as they are called these days, "apps."What's Next: The tech community expects a new product. Apple has secured an event space in Australia suitable for a product launch and has bought the domain name iSlate.com. Amid rampant rumors, the notoriously secretive company isn't saying a word. Shares are near an all-time high.Verdict: Apple is expected to earn $7.91 a share in its 2010 fiscal year, though analysts always underestimate. At its current level of valuation, shares likely have somewhere in the neighborhood of +25% upside, though a new product would render those forecasts moot. All in all, Apple is likely to continue to grow its user base with its elegant must-have gadgets and continue to command a heady valuation. It's a buy. **Ford Motor Co. ([F](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=F&selected=F)) )** - 2009 Performance: +335.4% (2008: -66.0%) What Went Right: In Ford's case, the question isn't so much what went right as it is what didn't go wrong. As General Motors and Chrysler failed and even Toyota foundered, Ford hung in. It had already begun to focus on its core business, offloading the nonessential brands like Aston-Martin, Volvo, Jaguar and Land Rover that it bought during the Jacques Nasser era. Ford posted some losses but it didn't take a dime from the feds and was never anywhere near bankruptcy court. Shareholders who bought while investors ran for the exits did extremely well: It was possible to earn a +500% return with these shares in 2009.What's Next: Ford's highly excellent CEO Alan Mullaly is presiding over an automaker that's building cars people can afford and want to drive. It's also on track to deliver cutting-edge lithium-in battery technology to help electric cars transition into the mainstream. Any market share that it's picked up could be short lived: GM is coming back stronger than ever, and Toyota, though weaker than in years past, remains a tough competitor with a very loyal customer base.Verdict: Ford was profitable overall for the first three quarters of 2009 and is expected to earn less than $0.60 per share in 2010. Given its historical valuation, whatever rosy future is in store is already priced in, as shares jumped above $10 for the first time since 2005. Investors should look elsewhere. **Freeport McMoRan Copper & Gold ([FCX](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=FCX&selected=FCX)) )** - 2009 Performance: +231.3% (2008: -76.1%) What Went Right: The prospect of absolute financial annihilation is always good news for hard assets like gold, the price of which started the year under $900, dipped to about $875 in April and has climbed steadily since, closing the year and the decade at $1096, up 23% for the year. That's great news for major gold producers like Freeport, which also saw the value of copper surge. What's Next: The market inked some nice gains this year, and investors who were burned in 2008 will likely be ready to inch back into the market and away from safe havens like gold. That will depress prices and mean tighter margins for companies like FCX.Verdict: Gold is a cautious investment, and caution is falling out of vogue. Investors likely will be safer in cash than in the yellow metal over the course of 2010. **Whole Foods (Nasdaq: WFMI)** - 2009 Performance: +192.1% (2008: -76.9%) What Went Right: Consumers came back from 2008's spending lockdown, which was brought on by high gas prices in late 2007 and exacerbated by falling home prices and the market collapse in 2008. But the upscale grocer's loyal customers decided that they couldn't live without its organic produce and other high-quality foods, especially if they were eating in more. The company received $400 million in private equity funding that allowed it to continue its expansion during the downturn, and it also shed of some antitrust issues that lingered after its acquisition of Wild Oats market.What's Next: Whole Foods was one of my picks going into 2009. I called it a buy at about ten bucks and was pleased to see the shares rebound. At 32.5 times earnings, however, these shares have almost the same valuation as Apple without the future upside.Verdict: If you like Whole Foods, shop there. I do. But look elsewhere for investments. There's no upside here. **Amazon (Nasdaq: AMZN)** - 2009 Performance +162.3% (2008: -44.6%) What Went Right: Amazon had a great Christmas, not in 2009 but in 2008, which was some trick in one of the worst shopping seasons in recent memory. This year, the site was getting hundreds of orders per second, and the company will continue to capitalize on its leading position as the nation's online mall. Its Kindle reader has started a revolution that, for now, the company owns. The shares rose all year.What's Next: Amazon is going to release numbers that Wall Street likes, but then it's likely that some of the fizz will fade as investors question whether the shares are worth nearly 80 times earningsVerdict: I like Amazon, but given its current valuation, it's nowhere near my radar screen by any stretch of the imagination. Still, patient investors should keep some cash at the ready to take advantage of the inevitable pullback. **American Express ([AXP](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=AXP&selected=AXP)) )** - 2009 Performance +118.4% (2008: -64.3%) What Went Right: American Express fired cardholders in 2009 that had no business leaving home without it. The cardmaker had lowered its standards somewhat to grow its membership base, and when the economy tightened and cardholders felt the economic squeeze, many of them fell behind on their AmEx bill. The company has since worked to focus on its best customers and rebuild itself as a premium brand. The worst thing that happened to the company this year might be its association with Tiger Woods, and that's hardly keeping the CEO up at night. What's Next: AmEx will keep its standards high and continue to bring in the best customers. And if a new pitchman signs on, no one should be too surprised.Verdict: At 33.5 times earnings, AXP is probably a little overvalued. It's a good comeback story for an American icon, but there is a lot more upside out there than these shares. **Goldman Sachs ([GS](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=GS&selected=GS)) )** - 2009 Performance +100.1% (2008: -60.8%) What Went Right: The storied investment bank sold preferred shares to billionaire investor Warren Buffett's Berkshire Hathaway and was among the first to get shed of government oversight by paying back its TARP funds. Goldman made a fortune trading this year and in underwriting stock issues and has so far reported three exceptional quarters for 2009 totaling $7.4 billion in profits.What's Next: Goldman never stops trading, underwriting or financing deals, and it's likely to see a continued rebound in 2010 as a rich business opportunity. Verdict: Goldman is on track to earn $18.75 per share in 2010, which implies a lot of upside for these shares. One potential catalyst is a share split, which doesn't change any of the underlying fundamentals but can make the shares -- which trade for $169 -- "seem" more affordable. These shares are a solid choice for 2010. **Google (Nasdaq: GOOG)** - 2009 Performance +101.5% (2008: -55.1%) What Went Right: Google continued to show that it's one of the smartest companies out there, notably in February when it posted its first message on Twitter -- in binary code. The company released Google Voice in March, an application that has the possibility to completely change the way people use their phone, which may be one reason that it's not available on the iPhone, which runs exclusively on AT&T's network. The company continued to benefit from advertisers who like targeting consumers and being able to measure results.What's Next: The catchword here is innovation. That's why investors are willing to pay 40 times earnings -- not because of what Google has done, which is game-changing, but because of what it will do next.Verdict: Every growth-oriented portfolio should hold these exciting shares. **Diamond Offshore ([DO](http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DO&selected=DO)) )** - 2009 Performance +67.0% (2008: -58.5%) What Went Right: The market was wrong about oil. Admittedly, it looked a little bleak going into the year. No one thought the economy was going to do anything but contract, which meant weaker demand for crude. Prices opened the year in the $40s and stayed there through the first quarter before beginning to rebound in about May. They closed the year just shy of $80 a barrel. That's great news for companies like Diamond Offshore, which explore for petroleum in deep-sea wells, which brought the industry some big finds in 2009, news that clearly points to the sea as a bright spot in the industry's future. What's Next: A continuing rebound means higher and higher prices for crude, and you don't have to look very far to find an economist who's forecasting triple-digit prices in the near-term future. The higher crude's price, the more cost-effective expensive offshore drilling becomes. That's not great news at the pump, but it's outstanding news for drillers like Diamond Offshore.Verdict: DO had a great year, but it's still trading for less than ten times earnings. It's a suitable investment for risk-tolerant investors willing to bet that oil will continue to hold its recent gains or continue its uptrend.[Image](https://www.nasdaq.com/sites/acquia.prod/files/ARP-Inline-Image.png) Andy ObermuellerEditor, Government-Driven InvestingP.S. It's a little ironic. When my boss Paul Tracy released his investment predictions for 2009 last year, his critics blasted him for his "absurdity." But his "wildest" predictions -- the ones claimed to be the most "out there" and "impossible to forecast" -- ended up making his readers the most money (up to +332.4%!). To see how ALL of last year's predictions fared compared to the overall market -- and to get a sneak preview of his 11 brand new forecasts for 2010, simply click here.P.P.S. One of these new 2010 picks could earn you +1,300% in a surprise takeover. Click here for more info. Disclosure: Andy Obermueller does not own shares of any security mentioned in this article. © Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved. | Ten Stocks with Gains for the Ages | News | Andy Obermueller | Unknown | 0.0004 | 101.943 | 102.035 | 99.8155 | 99.8864 | 99.8864 | 99.8864 | 99.8864 | 99.8864 | 99.9186 | 99.0188 | 99.4209 | 99.0338 | 99.023 | 99.023 | 99.0097 | 99.0261 | 103.987 | 91.4901 |
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in Data Studio
YAML Metadata
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empty or missing yaml metadata in repo card
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SC454k is a dataset of roughly 454k news articles and press releases related to small cap stocks from nasdaq.com and attached with market data from the Trade and Quote Millisecond dataset (TAQ/MSEC) from Wharton Research Data Services. Inspiration for this dataset was taken from FNSPID: A Comprehensive Financial News Dataset in Time Series.
Schema
- Symbol: the ticker symbol of respective stock (e.g., AAPL)
- Security: the full name of stock associated with the ticker symbol (e.g., Apple Inc.)
- Sector: broader economic sector the stock belongs to, sourced from nasdaq.com (e.g., Technology)
- Industry: more specific business segment within 'Sector', sourced from nasdaq.com (e.g., Computer Manufacturing)
- URL: URL associated with the 'Article' column
- Date: the date the 'Article' was published, in the format of MMM DD, YYYY HH:MM:SS (e.g., Aug 06, 2024 12:11:00)
- RelatedStocksList: stocks/topics that are related or appear in the 'Article' (excluding the respective stock mentioned in the 'Symbol' column). Delineated by '|'s (e.g., Markets|INTC|UNH|DOW)
- Article: text of the news article or press release. Any specially formatted text (bold text, tables, etc.) are treated in a pseudo-LaTeX format. For example, bold text are surrounded by '**'s and tables are wrapped in \begin{table}{...}\end{table}
- Title: title of the news article or press release
- articleType: value denoting the type of 'Article', either 'News' or 'Press Release'
- Publication: source responsible for publishing the 'Article' (e.g., The Motley Fool)
- Author: person or entity responsible for publishing the 'Article'. May appear as an entity similar to the 'Publication' (e.g., Publication: Zacks, Author: Zacks Equity Research) or as individual person (e.g., Publication: Validea, Author: John Reese)
- Risk_Free_Rate: annualized 1-month U.S. Treasury bill yield at the time of the article's publication - rate is sourced from Federal Reserve Economic Data (FRED), where values are expressed as decimals
- weighted_avg_x_hours: stock price 'x' hours away from 'Date' (calculated from a weighted average of the 8 closest stock prices to 'Date')
Scraping/Pairing Market Data
Scraping the non-pricing aspects of this dataset was conducted across 10 EC2 t2.large instances across two parts: scraping links, then the content of these links. Puppeteer, a headless Chrome browser in JavaScript, was used for lightweight, quick scraping. Data was subsequently cleaned with a combination of PySpark and NumPy. Pairing this with market data was made available through Wharton Research Data Services and their extensive collection of financial datasets. One collection of these datasets is the Trade and Quote Millisecond dataset (TAQ/MSEC), consisting of millisecond level access to the tick-by-tick trade and quote data of all activity within the U.S. National Market System. The process of pairing this pricing data with the timestamped news article/press release data through their API was magnitudes more tricky than meets the eye. The issue comes down to one thing: latency. The granularity of the API call can only be day-level, meaning a simple call to get the pricing data for say Apr. 3, 2020 11:13:37AM will return around 10-15 thousand records of data, and because multiple prices are being retrieved for each news article/press release (I'm grabbing the price of the stock 4 days before, 2 days before, all the way to 30 days after with more granularity in between, totaling 18 different prices across 10 unique days), this is a large amount of data to pair, even with highly-optimized C++ code. Thus, the pairing algorithm went through a number of iterations to optimize efficiency such as promoting a more indexed-based approach to finding dates, a stringent approach to clearing out unused memory, and customized bash scripts for easy deployment of multiple EC2 instances. Ultimately, totaling around 1400 hours of compute across 41 (yes, 41) m7g.medium instances. Any values where no market data was available is denoted with a null value. The number of rows with complete market data totals just above 440k.
Future Updates
I expect to update this dataset on a recurring basis, and will be doing the same for large cap stocks, as well. Stay tuned!
LinkedIn: https://www.linkedin.com/in/nicholas-bettencourt/
Email: nbetts@g.ucla.edu
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