Wednesday, August 6, 2014

Hot Railroad Companies To Own For 2014

More than 20% of total rail carloads stem from the coal industry. Because of this reliance on coal shipments, CSX (NYSE: CSX  ) and Norfolk Southern (NYSE: NSC  ) each saw revenues from coal shipments drop by double digits in the first quarter of 2013 versus the same quarter last year. This also can't be great news for Warren Buffett's Berkshire Hathaway (NYSE: BRK-A  ) , as it owns BNSF railroads, which holds a 33% market share in coal shipments by rail, according to 2012 data.

These companies cater to the eastern United States, which has seen its coal industry hurt to a much greater degree than miners out west, such as Peabody Energy and its Powder River Basin thermal coal production. Coal from this region is produced further down the cost curve and is competitive with much lower natural gas prices than the Appalachian output.

Because exports are becoming a much bigger part of the domestic coal landscape, CSX has chosen to focus on providing greater access to a variety of export terminals. Peabody Energy is just one company that has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

Best Electric Utility Stocks To Own For 2015: Oil and Gas Development Co Ltd (OGDC)

Oil and Gas Development Company Limited (OGDCL) is a Pakistan-based company engaged in the exploration and development of oil and gas resources, including production and sale of oil and gas and related activities. As the fiscal year ended June 30, 2012, the Company�� crude oil production was 37,615 barrels of oil per day, and 17 wells were spudded. As of June 30, 2011, the Company operated in 31 exploration blocks (22 blocks with 100% shares including an offshore block, and 12 blocks as operated joint ventures), including 3 offshore blocks. Its projects include Uch-II Development Project, KPD-TAY Integrated Development Project, Jhal Magsi Development Project, Sinjhoro Development Project and Nashpa/ Mela Development Project. Advisors' Opinion:
  • [By Weiyi Lim]

    Drinkall, whose $83 million Frontier Emerging Markets Portfolio (MFMIX) beat 99 percent of peers tracked by Bloomberg during the past 12 months with a 40 percent gain, said he favors Nigeria because of its economic growth prospects and Pakistan on the nation�� improving political stability. His fund held shares of Lagos-based Dangote Cement Plc (DANGCEM) and Islamabad-based Oil & Gas Development Co. (OGDC) as of April 30, Morgan Stanley�� website shows.

Hot Railroad Companies To Own For 2014: Glencore Xstrata PLC (GLENN)

Glencore Xstrata Plc is a diversified natural resource company. The Company operates in three segments: Metals and Minerals, which includes copper, nickel, zinc/lead, alloys, alumina/aluminum and iron ore; Energy Products, which includes controlled and non-controlled coal mining and oil production operations and investments in strategic handling, storage and freight equipment and facilities, and Agricultural Products, which focuses on grains, oils/oilseeds, cotton and sugar. The Company�� operations consist of over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. The Company is a producer and marketer of over 90 commodities, such as mobile phones, bicycles, cutlery, plastics and electricity. Effective January 2, 2014, Post Holdings Inc acquired Agricore United Holdings Inc from Viterra Inc, a unit of Glencore Xstrata PLC, and the transaction also included Dakota Growers Pasta Company, Inc. Advisors' Opinion:
  • [By Jay Silverman]

    The CEO (Erck), CFO (Phillips), and CMO (Glenn) are a solid management team, well-experienced in their respective roles, and have a sound working chemistry and quiet confidence.

Hot Railroad Companies To Own For 2014: AZZ Inc (AZZ)

AZZ incorporated, incorporated on March 29, 1956, is an electrical equipment and components manufacturer, serving the global markets of power generation, transmission and distribution, and the general industrial markets, and a provider of hot dip galvanizing services to the North American steel fabrication market. The Company operates in two segments: the Electrical and Industrial Products and Services Segment and the Galvanizing Services Segment. On October 1, 2012, the Company completed the acquisition of substantially all of the assets of Galvcast Manufacturing Inc. On January 2, 2013, the Company acquired G3 Galvanizing Limited (G3), a company with galvanizing operations in Halifax, Nova Scotia. On March 29, 2013, the Company completed its acquisition of Aquilex Specialty Repair and Overhaul LLC. In April 2013, it completed the acquisition of Aquilex Specialty Repair and Overhaul LLC (Aquilex SRO).

Electrical and Industrial Products and Services Segment

The Company�� Electrical and Industrial Products and Services Segment produces engineered specialty electrical products, industrial lighting and tubular products, all of which the Company market and sell both in domestic and international markets. The Company�� electrical products are designed, manufactured and configured to distribute electrical power to and from generators, transformers, switching devices and other electrical configurations and are supplied to the power generation, transmission and distribution markets and the general industrial market. The Company�� industrial products include industrial lighting and tubular products. The Company provides lighting products to the petroleum and food processing industries, and to other industries with lighting challenges. The Company also provides tubular products to the petroleum industry. In addition, the Company�� Electrical and Industrial Products and Services Segment provide electrical and mechanical equipment and services enhancing the safety of nuclear faci! lities.

Galvanizing Services Segment

The Galvanizing Services Segment provides hot dip galvanizing to the steel fabrication industry through facilities located throughout the South, Midwest, East Coast and Southwest of the United States and in the Canadian provinces of Quebec, Ontario and Nova Scotia. Hot dip galvanizing is a metallurgical process in which molten zinc is applied to a customer�� material. As of February 28, 2013, the Company operated thirty-five galvanizing plants, which are located in Alabama, Arkansas, Arizona, Colorado, Indiana, Illinois, Louisiana, Kentucky, Minnesota, Mississippi, Missouri, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia in the United States and Ontario, Quebec and Nova Scotia in Canada. The Company serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical and general industrial markets, and numerous original equipment manufacturers.

Advisors' Opinion:
  • [By Holly LaFon] Worth-based Azz Inc. (AZZ) makes electronic equipment and tubular products and provides galvanizing services. Greenblatt bought 19,515 shares of the company at an average of $43 per share in the fourth quarter.

    Azz has generated strong cash flow over the last 10 years, with two slightly down years. It grew its revenue at a 10-year rate of 10.9 percent, EBITDA at 22.9 percent, and book value at 17.2 percent. In the last five years it grew cash flow at a rate of 11 percent. Its return on equity has been in the double digits since 2007 and return on assets has been declining for the last four years.

    The company�� stock price fell to 52-week lows in the fourth quarter, but began to turn around when the company announced its fourth-quarter financial results. Its net sales had increased to $345.5 million in the first nine months of the year from $280 million in the same period last year. Net sales increased in both its electrical and industrial products and its galvanizing services segments after its electrical and industrial products segment revenue had decreased 20 percent for the full year ended February 2011.

    The company�� future prospects will be influenced by the expansion of the solar industry. "I anticipate an overall growth rate of 2 to 3 percent in the coming year. The solar market was and remains the driving force for growth in 2011, and is projected to remain a significant player through 2016,��said Tim Pendley, senior vice president and chief operating officer with AZZ Inc.

    Azz�� P/E, P/S and P/B ratios:

    AZZ pe,ps,pb Interactive Chart

    Primoris Services (PRIM)

    Primoris is a contractor and infrastructure company founded in 1946. It provides services related to construction fabrication, maintenance, replacement, water and wastewater and engineering to clients that are typically major public utilities, petrochemical companies, energy companies, municipalities and others. It doubled its size in 2009 and 2010 whe

  • [By Monica Gerson]

    AZZ (NYSE: AZZ) is expected to report its Q1 earnings at $0.54 per share on revenue of $191.37 million.

    TigerLogic (NASDAQ: TIGR) is estimated to post its Q4 earnings.

  • [By Roberto Pedone]

    Another earnings short-squeeze prospect is electrical equipment and components maker AZZ (AZZ), which is set to release numbers on Friday before the market open. Wall Street analysts, on average, expect AZZ to report revenue of $202.83 million on earnings of 66 cents per share.

    The current short interest as a percentage of the float for AZZ sits at 2.9%. That means that out of the 24.47 million shares in the tradable float, 696,000 shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of AZZ could spike sharply higher post-earnings as the bears look to cover some of their bets.

    From a technical perspective, AZZ is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $34.61 to its recent high of $44.69 a share. During that uptrend, shares of AZZ have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AZZ within range of triggering a near-term breakout trade post-earnings.

    If you're bullish on AZZ, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $44.69 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 229,856 shares. If that breakout triggers, the AZZ will set up to re-test or possibly take out its 52-week high at $49.10 a share. Any high-volume move above that level will then give AZZ a chance to trend north of $50 a share.

    I would simply avoid AZZ or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 200-day at $41.10 a share with high volume. If we get that move, then AZZ will set up to re-test or possibly take out its next major support levels a

  • [By Travis Hoium]

    What: Shares of electrical equipment maker AZZ (NYSE: AZZ  ) dropped as much as 16% today after the company reported earnings.

    So what: Revenue was up 44%, to $183.2 million, but net income fell 9%, to $14.5 million, or $0.57 per share. Analysts expected $197.6 million in revenue and $0.63 in earnings, so the quarter fell well short of expectations.�

Hot Railroad Companies To Own For 2014: United Utilities Group PLC (UUGRY)

United Utilities Group PLC, incorporated on April 08, 2008, is the holding company of a group which owns and operates water and wastewater assets in the North West of England. The Company provides water and wastewater services to around seven million people and businesses in the North West of England, through its wholly owned subsidiary United Utilities Water PLC (UUW). UUW holds licenses to provide water and wastewater services to a population of approximately seven million people in the North West of England.

The Company had approximately 56,000 hectares of catchment land, approximately 189 reservoirs, approximately 94 water treatment works, over 42,000 kilometers of water pipes, over 77,000 kilometers of sewer pipes, and approximately 570 wastewater treatment works. The Company�� wholly owned subsidiaries include United Utilities Water PLC and United Utilities Property Services Limited.

Advisors' Opinion:
  • [By G. A. Chester]

    Imperial Tobacco (LSE: IMT  ) (NASDAQOTH: ITYBY  ) , British Sky Broadcasting (LSE: BSY  ) , and United Utilities (LSE: UU  ) (NASDAQOTH: UUGRY  ) are three companies from the U.K.'s elite FTSE 100 index that have grown both their earnings and dividends faster than inflation -- and are forecast to continue doing so.

  • [By Harvey Jones]

    Severn Trent's share price has had a flat 12 months, aside from a bout of takeover excitement in May, which pushed the stock to a 12-month high of 20.90p. But management rejected the bid, claiming it failed to recognize the value in the business, and the excitement trickled away. Now it trades at 7.20p. That still represents of rise of 23% over three years and 29% over five years, against 18% and 26% for the FTSE 100 respectively. So there is growth to be had, although being a utility, most investors will focus on the income. Right now, Severn Trent yields 4.41%. That is less than fellow water company United Utilities Group (UUGRY), which yields 5.05%, but still comfortably above the FTSE 100 average of 3.54%.

Hot Railroad Companies To Own For 2014: Standard Pacific Corp(SPF)

Standard Pacific Corp. operates as a diversified builder of single-family attached and detached homes in the United States. It constructs homes targeting various homebuyers primarily move-up buyers in metropolitan markets in California, Florida, the Carolinas, Texas, Arizona, Colorado, and Nevada. The company also provides mortgage financing services to its homebuyers; and title examination services to its Texas homebuyers. As of December 31, 2011, it owned or controlled 26,444 homesites and had 166 active selling communities. Standard Pacific Corp. was founded in 1965 and is headquartered in Irvine, California.

Advisors' Opinion:
  • [By Louis Navellier]

    If we look at those stocks trading with single-digit P/E ratios right now, it becomes a very simple task to separate the wheat from the chaff. There are many well-known stocks trading at low P/E ratios that get horrible grades from our system and should be avoided:

    Ryland Homes (RYL) is a name you might hear discussed as a bargain, but the stock to a Sell back in November to a ����and is best avoided. Standard Pacific (SPF) is another builder you should probably avoid as In spite of the low P/E ratio ,you probably want to avoid discount retailer Big Lots (BIG), as a Strong Sell this week.

    But fear not — there are some great companies with solid fundamentals that earn a Buy ranking from Portfolio Grader and are better candidates for a low-P/E portfolio.

Hot Railroad Companies To Own For 2014: Akzo Nobel NV (AKZOY)

Akzo Nobel N.V. (AkzoNobel) is a global paints and coatings company and a producer of specialty chemicals. The Company operates in three segments: Decorative Paints, Performance Coatings and Specialty Chemicals. During the year ended December 31, 2009, the Company two distributors in Continental Europe. During 2009, it also acquired SABA, Kronospan and Dow Powder Coatings assets. During 2009, it also divested Chemcraft Brazil and the non-stick businesses. In January 2009, the Company completed the acquisition of LII Europe. In June 2010, the Company completed the acquisition of the Dow Chemical company's powder coatings activities. In June 2010, the Company announced the sale of its National Starch business to Corn Products International. In June 2010, the Company announced the sale of its National Starch business to Corn Products International. In September 2010, the Company acquired Changzhou Prime Automotive Paint Co. In October 2010, Corn Products International, Inc. acquired National Starch, the specialty starches business of the Company.

Decorative Paints

The Decorative Paints segment supplies a range of interior and exterior decoration and protection products for both the professional and do-it-yourself markets. Its products include paints, lacquers and varnishes, as well as products for surface preparation (pre-deco products). Its architectural coatings include interior and exterior wall paints and trim paints (lacquers) for consumers and professionals. The wood care and specialty products include lacquers and varnishes for wood protection and decoration, and specialty coatings for metal, concrete and other critical building materials. Its pre-deco products include fillers, wall treatments, sealants and putties for consumers and professionals. Its building adhesives include tile and floor adhesives and floor leveling compounds used in the building and renovation industry; supplied for professional workers, such as tile, floor and parquet, layers, interior decorators ! and painters, and direct to medium-sized enterprises, wholesalers, specialized retailers.

Performance Coatings

The Company�� Performance Coatings segment serves a range of customers, including ship and yacht builders and architects, consumer electronics and appliance companies, steel manufacturers, the construction industry, furniture makers, aircraft, bus and truck producers, body shops and can makers. The Company offers metal and plastic coatings for a range of applications from huge industrial equipment to the mobile phones and music players, computers, espresso machines and sporting goods. It also offers corrosion and fire protection across a range of industries, including upstream and downstream oil and gas facilities, chemical and petrochemical installations, high value infrastructure, such as airports and stadia and power generation stations. The Company provides coatings for small and large aircraft. It also offers coatings for marine vessels, including commercial tankers, ferries and leisure craft, and act as a salt water barrier and to minimize the build-up of organic material.

Specialty Chemicals

The Company�� Specialty Chemicals products are used in a range of everyday products, such as ice cream, soups, disinfectants, plastics, soaps, detergents, cosmetics, paper and asphalt. Its Industrial Chemicals business mines salt through vacuum extraction. It�� used as a raw material for its own activities, as well as being an end product found in grocery stores under brand names, such as Jozo and Nezo. The Company offers products, such as chlorine (Industrial Chemicals) or chlorate (Pulp and Paper Chemicals). Its major products include cellulosic additives, chelates, additives, ethylene amines, salt specialties and sulfur derivatives.

Advisors' Opinion:
  • [By Victor Selva]

    The company has a current ratio of 17.8% which is higher than the industry mean of 6.55%. Also, it's higher than the one registered by Akzo Nobel NV (AKZOY), Cabot Corporation (CBT) and Olin Corporation (OLN). For investors looking for a higher ROE, PPG Industries Inc. (PPG) could be the option.

  • [By Lawrence Meyers]

    VAL stock trades at about 18�timesFY14 estimates of $4.08. Even accounting for the 1.4% yield, it�� a tad bit pricey at 14% long-term EPS growth. But let�� look at competitors. PPG Industries (PPG) trades at 21�times�earnings on 11% long-term growth. Sherwin-Williams (SHW) trades at 24x earnings on 14.6% long-term growth. Akzo Nobel (AKZOY) trades at 16 times earnings on 11% growth.

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