This company's announcement earlier this week was leaps and bounds above all the Wall Street expectations, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
The stock market liked what it heard Wednesday, August 7, from Thompson Creek Metals (TC) after the close in New York. Second quarter adjusted net earnings of 8 cents a share crushed the Wall Street consensus of a penny a share. Revenue climbed 3.8% to $117.8 million versus expectations for revenue of just $1.3.8 million. The company also said that its new Mt. Milligan mine is on schedule with a start-up for the concentrator expected this month, with first ore-feed by mid-August. The company said it expects commercial production to begin in the fourth quarter of 2013, with production ramping to full capacity over the next twelve months.
All this is certainly good news for a miner that looked like it might run out of cash before it got the Mt. Milligan mine into production. The shares were up 13.6% yesterday on the news, as of 3:00 pm New York time. Thompson Creek Metals is a member of my long-term Jubak Picks 50 portfolio.
Top 5 Mid Cap Companies To Buy Right Now: PostRock Energy Corporation(PSTR)
PostRock Energy Corporation, an integrated independent energy company, engages in the acquisition, exploration, development, production, and transportation of oil and natural gas in the United States. It operates in two segments, Oil and Gas Production, and Natural Gas Pipelines. The Oil and Gas Production segment primarily focuses on the development of coal bed methane in the Cherokee basin and the Marcellus Shale in Appalachian Basin, as well as has oil properties in Central Oklahoma. As of December 31, 2009, it had approximately 51.9 billion cubic feet equivalent (Bcfe) of estimated net proved reserves; development rights to approximately 516,184 net acres; and operated approximately 2,849 gross wells in the Cherokee Basin. It also had approximately 44,507 net acres of oil and natural gas producing properties with estimated proved reserves of 18.9 Bcfe and approximately 498 gross wells in Appalachian Basin; and had 65 gross wells, development rights to approximately 1,4 80 net acres, and estimated net proved reserves, 3.9 Bcfe in Central Oklahoma. The Natural Gas Pipelines segment involves in transporting, gathering, treating, and processing natural gas. It owns and operates a natural gas gathering pipeline networks of approximately 2,173 miles in the Cherokee Basin and 183 miles in the Appalachian Basin; and a 1,120 mile interstate natural gas pipeline, which transports natural gas from northern Oklahoma and western Kansas to the metropolitan Wichita and Kansas City markets. The company is headquartered in Oklahoma City, Oklahoma.
Advisors' Opinion:- [By Eric Volkman]
LeBlanc is a veteran energy industry CFO. He has filled that role at East Resources -- now a unit of Royal Dutch Shell (NYSE: RDS-A ) -- as well as�PostRock Energy (NASDAQ: PSTR ) , and Range Resources, among others.
5 Best Penny Stocks To Own Right Now: Flexsteel Industries Inc.(FLXS)
Flexsteel Industries, Inc., together with its subsidiaries, engages in the manufacture, import, and market of residential and commercial upholstered and wooden furniture products in the United States. Its upholstered and wooden furniture products include sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture. The company distributes its products for use in home, office, hotel, and other commercial applications through its sales force and various independent representatives, as well as to various national and regional chains. Flexsteel Industries, Inc. was founded in 1929 and is based in Dubuque, Iowa.
Advisors' Opinion:- [By Dividends4Life]
Memberships and Peers: LEG is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: Hooker Furniture Corp. (HOFT) with a 2.7% yield, Flexsteel Industries Inc. (FLXS) with a 1.8% yield and Ethan Allen Interiors Inc. (ETH) with a 1.6% yield.
5 Best Penny Stocks To Own Right Now: Transocean Inc.(RIG)
Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.
Advisors' Opinion:- [By Aaron Levitt]
The key to SDRL has been its relationship with its master limited partnership subsidiary SeaDrill Partners (SDLP). SeaDrill has been quite successful at ��ropping down��assets into SDLP to avoid taxes and gain hefty distributions. All of which continues to boost cash flows and dividend yields for SDRL stock.
Dividend Stocks To Buy — #3 Transocean (RIG)RIG Dividend Yield: 5.3%
- [By Jim Mueller]
Drilling to dividends
Long-time holding Transocean (NYSE: RIG ) ��it was the first purchase in this portfolio ��is continuing to improve. It paid a first installment of $400 million toward the $1.4 billion settlement with the Dept. of Justice arising from the Gulf of Mexico Macondo well incident. It had an incident off the shore of Brazil resolve in its favor. And, it now feels that it has enough certainty to reinstate its dividend (after an absence of over a year), pushed along by pressure from Carl Icahn, the company's biggest shareholder. - [By Ben Levisohn]
Transocean (RIG) was supposed to release its financial results yesterday after the close. Instead, it delayed the release until Nov. 10 after taking nearly $2.8 billion in charges.
Kommersant via Getty ImagesCanaccord Genuity’s Alex Brooks and Richard Griffith have the details on Transocean’s writedown:
Transocean has delayed its 3Q results due to the ��omplexities involved��in determining $2.76bn in impairments, of which $1.97bn is a writedown of goodwill due to a decline in ��arket value�� and $0.79bn in the Deepwater Rig asset group due to drops in day-rates and utilisation…
There are 12 rigs in the Deepwater Rig group, all benign environment, 4G and 5G units, of which three are already idle without any future contracts. Three are fully booked through 2015, but the remaining six look likely to go idle for much of 2015, even if two have options. Given that these options are at rates of $370k and $420k, and prevailing day-rates for this category of unit are below $350k, we do not expect the options to be exercised. Our understanding of a writedown is that it implies profit generation will be less than the cost of capital; we already expect the group to be generating EBITDA losses from 2016E and therefore our best guess is that the fair value of this fleet is the PV of its contracts, which we estimate at $590m.
Perhaps surprisingly, Brooks and Griffith left their price target on Transocean unchanged at $20. They explain why:
Clearly in themselves the writedowns have only a small impact on numbers: these are entirely non-cash charges. However, they indicate that even within Transocean, projections for earnings are poor…
When the 3Q numbers are available, we expect EBITDA of $783m down 22% y/y and EPS of $0.80 down 53% y/y, largely because of the decrease in active rig-days in the period (down 9% y/y) and the consequent increase in non-operating costs as guided on the 2Q call. We have n
- [By The Specialist]
As stated in my most recent article on BP, I believe the economic damage from this settlement could potentially bring BP (and maybe even Halliburton (HAL) and Transocean (RIG) who are also being sued) to its knees. As such, I find it important to track the growing claims on the website maintained by the third party administrator and updated each business day to get insight on this. For a more detailed background on my thoughts and analysis on the settlement and how it could affect BP, please see my first article here and follow up article here. My tracking of data has shown that the economic settlement claims have been quickly accelerating in both average claim amount and total value of claims each week, with the data in the table toward the bottom of the article. In addition, I have added this week's data as of the date and time of the writing of this article, and the prorated claims have jumped another 18% this week over last week again with again a very high average claim amount. When Friday's data comes out, that final week over week percentage change may differ materially.
5 Best Penny Stocks To Own Right Now: The Hackett Group Inc.(HCKT)
The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in the United States and western Europe. The company offers executive advisory programs, benchmarking, business transformation, and technology consulting services, as well as shared services, offshoring, and outsourcing advice. Its executive advisory programs consists of advisor inquiry, an inquiry service used by clients for access to fact-based advice on proven approaches and methods to increase the effectiveness of selling, general, and administrative processes (SG&A); best practice research, a research that provides insights into the proven approaches in use at organizations; peer interaction program comprising member-led Webcasts, annual Best Practice Conferences, annual Member Forums, membership performance surveys, and client-submitted content; and best practice intelligence center, an online, searchable repository of practices, performance metrics, conference presentat ions, and associated research. The company?s bench marking services conduct studies in the areas of SG&A, finance, human resources, information technology, procurement, enterprise performance management, shared service centers, and working capital management. These services are used by clients to establish priorities, generate organizational consensus, align compensation to establish performance goals, and develop the required business case for business and technology investments. Its business transformation programs help clients to develop coordinated strategy for achieving performance improvements across the enterprise; and Hackett Technology Solutions help clients choose and deploy the software applications that meet their needs and objectives. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in January 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.
Advisors' Opinion:- [By ValueArtifex]
One such situation currently in the process of unfolding this month is a Dutch Tender by The Hackett Group (HCKT). I will briefly discuss the underlying business, what exactly a Dutch Auction (or in this case, a Tender) is, what options investors have when approaching this situation and how it could play out.
No comments:
Post a Comment