And today GS issues a downgrade. So who do you trust more... Buffet or GS? I'm stickin' with Warren on this one. The slump in oil E&P won't last more than a year or so.
@@@@@NE\W YORK (TheStreet) -- Shares of Precision Castparts Corp. (PCP - Get Report) are down 1.66% to $215.97 in morning trading today as Goldman Sachs downgrades the Portland, OR-based aerospace supplier to "neutral" from "buy" and lowers its price target to $223 from $258. "PCP remains a long-term well positioned and high margin aerospace supplier, with a lot of potential to create shareholder value. However, it has now grown organically at a slower pace than the supply chain average for 11 of the last 12 quarters, which could continue for at least the next few given its Oil & Gas exposure and no visibility into the end of engine destocking," Goldman Sachs said. Its inventory growth and lack of converting 100% of net income to free cash are "concerning," analysts said, adding that they see slower than aerospace average forward EPS growth for the company, and risk it "disappoints" with its initial 2016 EPS guidance in May.
Looks like SNHY is facing some FX headwinds. Guidance for Q1 is well below current estimates.
@@@@@"Demand was strong throughout the fourth quarter, capping off another record year for Sun," said Allen Carlson, Sun's President and CEO. "All geographic end markets expanded in the quarter, led by robust demand in North America, which was up 18%. Asia/Pacific and Europe were each up 5%. For the year, we were able to drive double digit top and bottom line growth. Our performance led the Board to once again declare a shared distribution, recognizing the importance of both employees and shareholders."
Outlook: First quarter 2015 revenues are expected to be approximately $55 million, down 3% from the first quarter of 2014, primarily driven by a strong U.S. Dollar against the Euro. Earnings per share are estimated to be $0.40 to $0.42 compared to $0.43 in the same period a year ago. The first quarter will look similar on the top line to the fourth quarter, but operationally we expect to drive more profit to the bottom line.
More ion this one... I suspect SHPG might make a move on PTCT. Fits in well with their strategy.
@@@@@Reuters) - Rare disease drugmaker PTC Therapeutics Inc (PTCT.O) is exploring a potential sale amid takeover interest from several pharmaceutical companies, including Shire Plc (SHP.L) and BioMarin Pharmaceutical Inc (BMRN.O), according to people familiar with the matter.The company, which treats a muscle-wasting disorder known as Duchenne, is working with financial advisers as it weighs strategic alternatives, said the sources, who asked not to be named because the matter is private.Prosena Holding NV, which also makes a treatment for Duchenne, was acquired last November by BioMarin for $840 million. PTC Therapeutics' drug Translarna has received orphan drug status in the European Union and the United States and is in process of seeking U.S. Food and Drug Administration approval. Shire Plc could be interested in acquiring PTC Therapeutics to add to its portfolio of rare disease drugs, the sources added. Shire has made several acquisitions to bolster its focus on rare diseases, including a $5.2 billion purchase of NPS Pharmaceuticals in January and a $4.2 billion deal for ViroPharma last year. It also took a look at acquiring Salix Pharmaceuticals Ltd (SLXP.O) in recent weeks but ended up passing on the deal, according to sources.
A workable alternative would be imposition of unlimited fines. I suppose that could extend to seizure of the entire company's assets and subsequent divestment with proceeds going to the government. Of course, that mean that shareholders who choose to invest in a corrupt firm must suffer the consequences of their actions.... seems reasonable enough to me.
Good question. A decent proxy would be the CEO or Chairman I suppose.
@@@The Corporate Manslaughter and Corporate Homicide Act 2007 In English law, a corporation is a juristic person and is capable of committing, and being convicted of and sentenced for, a criminal offence. However, some conceptual difficulty lies in fixing a corporation with the appropriate mens rea.
Companies that break the law deserve to go to jail.
@@@@@As anti-corruption enforcement becomes increasingly global, companies may wish that other countries would stick to the finely-tuned U.S. model of hashing out bribery settlements. SNC-Lavalin Group Inc.SNC.T -0.28% sure does. Canadian police filed criminal bribery and fraud charges against the Montreal-based engineering firm last week, which the company plans to contest. The move shows that the country’s bribery enforcement efforts are picking up and that Canadians are not necessarily following the American model of settling such cases. Such a move by police would be nearly unheard of in the U.S., where corruption charges are usually only filed against a big corporations as a part of a negotiated settlement. This point was not lost on SNC-Lavalin, which responded to the Canadian charges with a press release pointing out that “companies in other jurisdictions, such as the United States and United Kingdom, benefit from a different approach” that lets companies resolve bribery investigations “while balancing accountability and securing the employment, economic and other benefits of businesses.” The company also mentioned internal changes that may well have curried favor with U.S. authorities in settlement talks, including a compliance overhaul, new chief executive and a clear ethical “tone from the top.” There’s little sign these changes helped their case with Canadian authorities.
No better than the old DOT111 cars. Back to the drawing board... maybe they should make them out of 3ft thick concrete like nuclear containment buildings.
@@@@TORONTO, Feb 23 (Reuters) - A train derailment in Canada this month that set ablaze several new-model tank cars carrying crude oil shows the need for tougher rail car standards, Canada's safety watchdog said on Monday. "Preliminary assessment of the CPC-1232-compliant tank cars involved in this occurrence demonstrates the inadequacy of this standard given the tank cars' similar performance to the legacy Class 111 tanks cars involved in the Lac-Mégantic accident," the board said in a statement. A crash last Monday in West Virginia of a CSX Corp train also involved the newer model CPC-1232-compliant tank cars.
@@@@In 1988, Sandia National Laboratories conducted a test of slamming a jet fighter into a large concrete block at 481 miles per hour (775 km/h). The airplane left only a 2.5-inch-deep (64 mm) gouge in the concrete. Although the block was not constructed like a containment building missile shield, it was not anchored, etc., the results were considered indicative. A subsequent study by EPRI, the Electric Power Research Institute, concluded that commercial airliners did not pose a danger.
RAI's new(old) CEO is the Dagny Taggart of this 21st century. Bravo.
@@@@WSJ: How would you describe the U.S. regulatory environment? MS. CAMERON: This country is constipated with regulation. For every sector, I hear about extraordinary regulatory burdens: slowness in response rates, dealing with multiple agencies that don’t talk to each other. To improve our global competitiveness as a nation, the regulatory burden needs addressing. WSJ: Combustibles still deliver the majority of company revenue. How much skepticism do you run into pushing vapor? MS. CAMERON: What’s nice about the strategy is that over time we are very confident we will be able to have the same margin in vapor as we have in combustibles. We can actually have a win-win strategy in terms of being able to continue the revenue stream with a different product category. We’re not just making a strategy that sounds good for the environment but is actually going to put us out of business.
Recent article posted for NILSY on SeekingAlpha summarizes the company's business and prospects nicely. This beast is a veritable money generator, and is paying out a nice chunk of their profits in dividends.
@@@@Norilsk Nickel: A Dividend Play With A Significant Growth Potential --- Norilsk Nickel has adopted a generous dividend policy (table below). It intends to pay regular dividends equal to 50% of EBITDA. The dividend was $1.27 per ADR in 2012 and $1.4 in 2013. In 2014 there was an interim dividend of $1.41. The total dividend for 2014 will be probably even higher. But using only the value of $1.41 and the current ADR price of $18.05, the dividend yield equals to 7.81%.
Another rumor out today.... this time the target is PTCT. The size of the target is much smaller than SLXP which would make this deal far easier to close on.
@@@@Orphan drug developer PTC Therapeutics (PTCT +16.1%) is exploring selling itself amid rumors of interest from Shire plc (SHPG +1.9%) and BioMarin Pharmaceuticals (BMRN +1.8%).PTC's lead product candidate is Translarna (ataluren) for the treatment of patients with genetic disorders due to a nonsense mutation. It is in clinical development for Duchenne muscular dystrophy (DMD) caused by a nonsense mutation (nmDMD) and cystic fibrosis caused by a nonsense mutation (mnCF). The FDA designated it an Orphan Drug for both indications.The company's market cap is $2.2B while DMD competitor Sarepta Therapeutics is valued at $637M. BioMarin gobbled up the other DMD player, Prosensa Holding N.V. in November for $680M plus milestones.
And I trust their call on HPQ too.
@@@@@In a report issued on Monday, Wells Fargo previewed Hewlett-Packard Company (NYSE: HPQ) for the 2015 fiscal year. Wells Fargo rates Hewlett-Packard as Outperform with a price target range of $46.00-$49.00. Analysts at Wells Fargo wrote, "We expect PC share gains in particular, as well as strength in transactional year-end IT demand (servers) and solid printing demand to drive revenue. Transactional strength may also help cash flow and we continue to believe there is scope for upside potential to management's FY guidance of $6.5-$7.0 Billion." In the report, Wells Fargo discussed three reasons why they believe Hewlett-Packard is attractively valued: Potential expansion from the bottoming of legacy businesses.
Increased shareholder value due to their upcoming corporate split. Laser printing strength driven by color and multi-function printers and managed printer service along with recent struggles in rival Lenovo Group Limited.
Shares of Hewlett-Packard recently traded at $38.11, down 0.73 percent.