On Jul 4, we downgraded our recommendation on leading methanol producer Methanex Corporation (MEOH) to Neutral. While Methanex is poised to gain from capacity expansion and its Geismar methanol project, its exposure to natural gas curtailment issues leads us to tread with caution. Why the Downgrade? Methanex, on Apr 24, reported lower-than-expected first-quarter 2013 results with both revenues and earnings missing Zacks Consensus. Estimates. Profit, however, more than doubled year-over-year, helped by lower costs and higher pricing. Methanex benefited from growing demand for methanol in the energy industry. However, restricted supply of natural gas affected its operations in Chile, Trinidad and Egypt in the quarter. Methanex, which carries a short-term Zacks Rank #3 (Hold), is the world�� largest supplier of methanol. We feel that the company may continue to face gas supply restrictions in the near term.
Peerless Systems Corporation holds the right to license imaging and networking technologies and components to the digital document markets. It licenses technologies and components for the original equipment manufacturers of color and monochrome printers, and multifunction office products. The company was founded in 1982 and is headquartered in Stamford, Connecticut.
Advisors' Opinion: Top 10 Industrial Disributor Companies To Own For 2015: Sonoco Products Company(SON)
Sonoco Products Company provides industrial and consumer packaging products, and packaging services worldwide. It offers composite paperboard cans; paperboard packages; fiber cartridges; layered bottles and jars; laminated tubs, cups, and spools; consumer and institutional trays; and aluminum, steel, and peelable membrane easy-open closures, as well as flexible packaging, product design, tool design, fabrication, and manufacturing services. The company also produces paperboard tubes, cores, roll packaging, molded plugs, pallets, pallet components, concrete forms, rotary die boards, recycled paperboard, chipboard, tube board, lightweight corestock, boxboard, linerboard, corrugating medium, specialty grades, and recovered paper products; and steel, nailed wooden, plywood, recycled, and polyfiber reels, as well as recycles old corrugated container, paper, plastic, metal, and glass materials. In addition, it manufactures custom-printed glass covers and coasters; offers custom packing, fulfillment, and primary package filling services, as well as operates scalable service centers; contract packaging, co-packing, and fulfillment services; and temporary, semipermanent, and permanent point-of-purchase displays. Further, the company provides fabricated foam, corrugated paperboard, molded EPS and EPP, antistatic fabricated foam solutions, nesting and stacking trays, molded foam dunnage, totes and tote inserts, energy-absorbing and flotation components, and insulation components, as well as contract package testing service. Additionally, it offers insulated shippers, durable transport chests, gel packs, phase change materials, lab/pharma/diagnostic specimen transport, refrigerant materials, edge and corner protection, and temperature assurance solutions; high-visibility packaging and printed products; and blister packaging machines. The company, formerly known as Southern Novelty Company, was founded in 1899 and is based in Hartsville, South Carolina. Advisors' Opinion:
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Sonoco Products (NYSE: SON ) , whose recent revenue and earnings are plotted below.
Top 10 Industrial Disributor Companies To Own For 2015: National Health Investors Inc. (NHI)
National Health Investors, Inc., a real estate investment trust (REIT), invests in health care properties, primarily in the long-term care industry in the United States. As of December 31, 2008, it had investments in real estate assets and mortgage notes receivable investments in 123 health care facilities consisting of 83 long-term care facilities, 1 acute care hospital, 4 medical office buildings, 14 assisted living facilities, 4 retirement centers, and 17 residential projects for the developmentally disabled in 17 states. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. National Health Investors, Inc. was founded in 1991 and is based in Murfreesboro, Tennessee.
Advisors' Opinion: - [By Marc Bastow]
Long-term care and senior housing real estate investment trust National Health Investors (NHI) raised its quarterly dividend 6.2% to 77 cents per share, payable on May 9 to shareholders of record as of Mar. 31. NHI stock has the second-highest yield on this week’s list of dividend stocks increasing payouts.
NHI Dividend Yield: 4.88%
- [By Lauren Pollock]
National Health Investors Inc.(NHI) signed an agreement to acquire 25 independent-living facilities from Holiday Retirement Corp. affiliates for $491 million. The health-care focused real-estate investment trust also unveiled plans to offer 4.5 million shares of its stock to help fund the pending deal.
Top 10 Industrial Disributor Companies To Own For 2015: Hatteras Financial Corp (HTS)
Hatteras Financial Corp., incorporated on September 19, 2007, is an externally managed mortgage real estate investment trust (REIT) that invests primarily in single-family residential mortgage pass-through securities guaranteed or issued by the United States Government agency (such as the Government National Mortgage Association (Ginnie Mae)), or by the United States Government-sponsored entity (such as the Federal National Mortgage Association, (Fannie Mae)), and the Federal Home Loan Mortgage Corporation, (Freddie Mac)). The Company is externally managed and advised by its manager, Atlantic Capital Advisors LLC.
The Company focuses on agency securities consisting of mortgage loans with short durations. The agency securities consist of mortgages that have principal and interest payments guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac. It invests in both fixed-rate and adjustable-rate agency securities. Adjustable rate mortgages (ARMs) are mortgages that have floating interest rates that reset on a specific time schedule, such as monthly, quarterly or annually, based on a specified index, such as the 12-month moving average of the one-year constant maturity United States Treasury rate (CMT) or the London Interbank Offered Rate (LIBOR). The ARMs it generally invests in, sometimes referred to as hybrid ARMS, have interest rates that are fixed for an initial period (typically three, five, seven or 10 years) and then reset annually thereafter to an increment over a pre-determined interest rate index.
Advisors' Opinion: - [By Amanda Alix]
When Hatteras Financial (NYSE: HTS ) declared second-quarter�earnings earlier this week, it was not a pretty sight, as earnings per share missed the mark by $0.04. But that wasn't what set the stage for the carnage that spread throughout the sector: Hatteras reported a huge -- more than 20% -- drop in book value from the first quarter, sending the stock down more than 10% on Wednesday.
- [By Rich Duprey]
Single-family-housing REIT�Hatteras Financial (NYSE: HTS ) announced yesterday its second-quarter dividend of $0.70 per share, the same rate it's paid for the past two quarters after cutting the payout 12.5% from $0.80 per share.
- [By Amanda Alix]
More mREITs stay the course, but two trim payouts
Despite suffering many tumbles and bruises, several mREITs have announced that their dividends will be unchanged from the previous quarter. Several did so last week, and yesterday saw Hatteras Financial (NYSE: HTS ) , an agency-only trust, keeping its own $0.70 per share�payout the same. Hybrid New York Mortgage Trust (NASDAQ: NYMT ) also kept its dividend stable, at $0.27 per share, in line with its four most recent distributions.
- [By Zain Zafar]
Hatteras Financial (NYSE: HTS ) �was one of the worst performers during the period despite following a relatively conservative strategy of investing mostly in adjustable-rate mortgage (ARM) mortgage-backed securities, as opposed to fixed-rate 30-year MBSes that can often carry a larger interest rate risk.�
Top 10 Industrial Disributor Companies To Own For 2015: General Motors Co (GM)
General Motors Company (GM), incorporated in on September 16, 1908, designs, builds and sells cars, trucks and automobile parts worldwide. The Company also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). It operates in four automotive segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA). GM�� total worldwide vehicle sales were nine million during the year ended December 31, 2011. The Company�� GMNA segment develops, manufactures and/or markets vehicles under the brands, such as Buick, Cadillac, Chevrolet and GMC for its customers in North America. GM for its customers outside North America develops, manufactures and/or markets vehicles under the brands, such as Buick Chevrolet, GMC, Opel, Cadillac, Daewoo, Holden and Vauxhall. In March 2011, the Company announced the sale of its Class A Membership Interest in Delphi Automotive LLP (Delphi) back to Delphi. In October 2012, the Company bought back most of the 50% interest in its Indian operations that it had sold to Chinese partner SAIC Motor Corp Ltd and raised its interest in the venture to 93%.
Automotive
GMNA, with sales, manufacturing and distribution operations in the United States, Canada and Mexico and sales and distribution operations in Central America and the Caribbean, represented 32.4% of the Company�� vehicle sales volume in 2011. GME has sales, manufacturing and distribution operations across Western and Central Europe. GME's vehicle sales volume, which in addition to Western and Central Europe, includes Eastern Europe (including Russia and the other members of the Commonwealth of Independent States among others) represented 19.2% of its vehicle sales volume GMIO distributes Chevrolet brand vehicles which, when sold in Europe, are included in GME vehicle sales volume and market share data. GMIO has sales, manufacturing and distribution operations in Asia-Pacific, Eastern Europe (including Russ! ia and the other members of the Commonwealth of Independent States among others), Africa and the Middle East. GMIO represented 36.6% of the Company�� global vehicle sales volume, including sales through its joint ventures in 2011. GMSA, with sales, manufacturing and distribution operations in Brazil, Argentina, Colombia, Ecuador and Venezuela, as well as sales and distribution operations in Bolivia, Chile, Paraguay, Peru and Uruguay represented 11.8% of its vehicle sales volume in 2011. In 2011 GMSA derived 59.4% of its vehicle sales volume from Brazil.
As of December 31, 2011, the Company had equity ownership stakes directly or indirectly in entities through various regional subsidiaries, including GM Korea Company (GM Korea), Shanghai General Motors Co., Ltd. (SGM), SAIC-GM-Wuling Automobile Co., Ltd. (SGMW), FAW-GM Light Duty Commercial Vehicle Co., Ltd. (FAW-GM) and SAIC GM Investment Limited (HKJV). These companies design, manufacture and market vehicles under the brands, including Alpheon, Buick, Chevrolet, Jiefang, Baojun, Cadillac, Daewoo and Wuling. In addition to the products GM sells to its dealers for consumer retail sales, and also sells cars and trucks to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and Governments. It sells vehicles to fleet customers directly or through its network of dealers. The Company�� retail and fleet customers can obtain a range of after sale vehicle services and products through its dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties.
GM markets vehicles worldwide primarily through a network of independent authorized retail dealers. These outlets include distributors, dealers and authorized sales, service and parts outlets. The Company enters into a contract with each authorized dealer agreeing to sell to the dealer one or more specified product lines at wholesale prices and granting the dealer the right to ! sell thos! e vehicles to retail customers from an approved location. Authorized dealers offer parts, accessories, service and repairs for GM vehicles in the product lines that they sell using GM parts and accessories. Its dealers are authorized to service GM vehicles under its limited warranty program and those repairs are to be made only with GM parts. The Company also markets FlexFuel vehicles in Australia, Thailand and other markets.
GM produces compressed natural gas capable vehicles in Europe, such as the Opel Zafira, and in the United States, the Chevrolet Express and GMC Savana full-size vans are offered to fleet and commercial customers. It offers LPG capable vehicles in select markets in Europe, Asia Pacific, South America and North America. OnStar Corporation (OnStar) is a wholly owned subsidiary of GM serving more than six million subscribers in the United States, Canada and China. OnStar is a provider of connected safety, security and mobility solutions and information technology. OnStar's principal services include automatic crash response, stolen vehicle assistance, remote door unlock, turn-by-turn navigation, vehicle diagnostics and hands-free calling.
Automotive Financing - GM Financial
GM Financial specializes in purchasing retail automobile installment sales contracts originated by GM and non-GM franchised and independent dealers in connection with the sale of used and new automobiles. GM Financial also offers lease products through GM dealerships in connection with the sale of used and new automobiles. GM Financial primarily generates revenue through the purchase, retention, subsequent securitization and servicing of finance receivables. GM Financial earns finance charge income on finance receivables and pays interest expense on borrowings under its credit facilities. GM Financial periodically transfers receivables to securitization trusts that issue asset-backed securities to investors. In April 2011 GM Financial originated leases for the Company�� cust! omers in ! Canada.
Advisors' Opinion: - [By WWW.DAILYFINANCE.COM]
Bill Pugliano/Getty Images We're years away from mass production of cars that drive themselves, and you're dreaming if you think that flying cars like we saw on "The Jetsons" will happen in our lifetimes. However, the one automotive revolution that's about to make a big splash is the connected car. Web-tethered cars can track local traffic in real time and serve up Web access, streaming apps and other infotainment for backseat passengers. Many cars already allow smartphone users to use their mobile Bluetooth connections to play Pandora (P) through their dashboard entertainment systems or engage in hands-free phone calls. However, factory-equipped WiFi hotspots that seamlessly connect gadgetry brought into the car makes the revolution so much easier. It's already happening on a small scale. General Motors (GM) and AT&T (T) are about to take it mainstream. Welcome to the Information Superhighway Highway It's been 15 months since GM and AT&T announced that they would be adding 4G LTE connectivity to 30 models of Chevrolet Buick, GMC, and Cadillac vehicles, building on GM's OnStar telematics platform. These cars are starting to roll off the assembly line, and by next month the mobile WiFi option will be available when the 2105 Chevy Malibu hits the showroom. AT&T's multi-year agreement to provide 4G LTE mobile Internet will be $10 for customers in the Mobile Share data plan, where an account accesses a pool of data every month across various devices. Others will pay $30 to $50 a month for access. There's an App Store for That Outside of its OnStar services, GM hasn't typically been on the cutting edge of technology. However, in the knowledge that many of its cars will soon have speedy 4G LTE connectivity, the automaker is making up for lost time by incorporating proprietary applications that can be opened right from the dashboard. Tech blog Gigaom surveyed the suite of initial apps back in February. There wasn't much. Just a dozen applicatio
- [By WWW.DAILYFINANCE.COM]
Gene J. Puskar/AP DETROIT -- said its U.S. July auto sales rose 20 percent and that it expected the industry to show an 8 percent increase for the month. Both figures were below analysts' estimates. Nine analysts surveyed by Reuters had expected gains of 25.5 percent for Chrysler and 11 percent for the industry. However, Chrysler said last month was its best July since 2005, with sales of 167,667 vehicles. Gains in U.S. auto sales have been stronger than the overall economy since the recession. Still, the monthly figures also provide an early glimpse into consumer spending. Auto sales dropped to a low of 10.4 million vehicles in 2009 and have risen steadily since, reaching 15.6 million vehicles last year. They are on a pace for about 16.4 million this year, in part because of easier credit and loans of up to 84 months. In a posting on Twitter, Hyundai Motor said its U.S. July sales rose 1.5 percent to 67,011 vehicles, an all-time record for that month. General Motors (GM), which reports sales later Friday morning, is expected to show a gain of 11 percent, according to the analysts surveyed by Reuters. This month Toyota Motor (TM) is expected to nudge Ford Motor (F) for the No. 2 sales spot, behind GM. Analysts expect Toyota sales to rise 11 percent and Ford's to increase 9 percent. Toyota topped Ford in U.S. sales in July 2013, but Ford has held second place for all of last year and so far this year. On Friday in Turin, Italy, where Chrysler parent Fiat is headquartered for now, shareholders are expected to approve a merger that will create Fiat Chrysler Automobiles, to be registered in the Netherlands. Fiat has relied on the resurgence of Chrysler in North America since the No. 3 U.S. automaker's 2009 government-sponsored bankruptcy as Europe's auto sales flagged. Sales of Chrysler's Jeep SUV brand, which Fiat Chrysler sees as a linchpin in its global growth, showed sales up 41 percent in July, while Ram truck sales rose 14 percent. Chrysler bran
Top 10 Industrial Disributor Companies To Own For 2015: Diageo plc(DEO)
Diageo plc engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. It offers a range of brands, including Johnnie Walker scotch whiskies, Smirnoff vodka and Smirnoff ready to drink products, Baileys Original Irish Cream liqueur, Crown Royal Canadian whisky, Captain Morgan rum and rum based products, Jose Cuervo tequila, JeB scotch whisky, Buchanan?s scotch whisky, Windsor Premier scotch whisky, Ketel One vodka, Ciroc vodka, Tanqueray gin, Bushmills Irish whiskey, and Guinness stout. The company also provides other spirits brands that comprise Gordon?s gin and vodka, Old Parr scotch whisky, Bell?s scotch whisky, The Classic Malts scotch whiskies, Seagram?s 7 Crown whiskey and Seagram?s VO whisky, Cacique rum, White Horse scotch whisky, Don Julio tequila, and Bundaberg rum. In addition, it offers beer under various brands, such as Malta Guinness non-alcoholic malt, Harp lager, Tu sker lager, Smithwick?s ale, Senator lager, and Red Stripe lager; and wine under a range of brands, including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d?Or, Chalone Vineyard, and Santa Rita. Further, Diageo plc owns the distribution rights for the Jose Cuervo tequila brands in North America and internationally. The company was founded in 1886 and is based in London, the United Kingdom.
Advisors' Opinion: - [By Rich Smith]
It's time for a new CEO at Diageo (NYSE: DEO ) as Paul Walsh is stepping down after 13 years.
On Tuesday, the London-based brewer, vintner, and distiller filed a Form 6-K with the SEC, stating that Chief Executive Officer Walsh will be stepping down from his post on July 1, and retiring from the company entirely by June 30, 2014.
- [By Royston Wild]
Bubbly activity in these developing geographies can create large opportunities for many London-listed firms. Today, I am looking at�Diageo� (LSE: DGE ) (NYSE: DEO ) �and assessing whether its operations in these regions are likely to underpin solid earnings growth.
- [By Rupert Hargreaves]
Today, I'm looking at drinks giant�Diageo� (LSE: DGE ) (NYSE: DEO ) to determine whether the shares are still safe to buy at 1,905 pence.
- [By Roland Head]
Luckily, there is another way. The FTSE 100 contains a number of companies whose earnings come from these countries. Two great examples are Diageo (LSE: DGE ) (NYSE: DEO ) and SABMiller (LSE: SAB ) (NASDAQOTH: SBMRY ) , which sell spirits and beer, respectively, and have global operations providing exactly the kind of emerging-market exposure I'm looking for.
Top 10 Industrial Disributor Companies To Own For 2015: Mechel OAO (MTLR)
Mechel OAO is a Russia-based integrated mining and steel company. The Company focuses on the production of mining products, such as coal, iron ore, nickel, and steel products. Its operations are divided into two segments: Mining and Steel. The Mining segment focuses on the production and sales of coking coal concentrate, iron ore concentrate and coke with assets in the Russian Federation and the United States. The Steel segment comprises production and sale of semi-finished steel products, carbon and specialty long products, stainless flat products, and value-added downstream metal products, including hardware and stampings. The Company has production facilities, located domestically in numerous regions, as well as in the United States, Kazakhstan, Lithuania, Ukraine, the United Kingdom and Bulgaria. In July 2013, it closed the deal on disposal of 100% of the shares of Toplofikatsia Rousse EAD. In July 2013, the Company sold a 100% stake in Invicta Merchant Bar.
Advisors' Opinion: - [By Lyubov Pronina]
The Micex Index slid 1.1 percent to the lowest level since November. Russian growth is forecast to slow to 2.4 percent this year on high interest rates and lower gas exports, Economy Minister Andrei Belousov told reporters today. OAO Mechel (MTLR), a coking coal and steel producer, tumbled 6.3 percent.
