Evercore ISI initiated coverage on shares of Shell Midstream Partners (NASDAQ:SHLX) in a research note issued on Tuesday, TheFlyOnTheWallDOtcom reports. The firm set a “buy” rating on the stock."
If by some chance Cashin is correct , then SHLX will see a double whammy (perhaps whammy is excessive and "mild hit") to revenues . Significantly lower prices will trigger another rate allowance for RDS and storage at capacity would slow volume throughput and perhaps trigger the fee minimum. If! And it's all temporary anyway ,IF it were to happen. But this scenario , low oil prices and over supply, will eventually hit the Balance Sheet . When oil was $100 barrel , the future return on assets was expected to be much higher than today . Companies eventually accelerate Depreciation and write down assets when the foreseeable future return of assets is diminished . But I may be wrongly assuming that allowances for big changes in the price of oil are not one time events, rather allowances for rates remain at certain oil prices. And oil prices are expected to remain low for the foreseeable future
Merrill Lynch Downgrades Alcoa and Century Aluminum :Why Merrill Lynch Threw In the Towel on Aluminum
By Chris Lange March 4, 2015 10:55 am EST
Big aluminum took a hit Tuesday morning when Merrill Lynch issued downgrades for both Alcoa Inc. (NYSE: AA) and Century Aluminum Co. (NASDAQ: CENX). The downgrades were the direct result of worsening fundamentals in the aluminum industry. Merrill Lynch did not stop with big aluminum, as Noranda Aluminum Holding Corp. (NYSE: NOR) received a not-too-favorable call as well.
Metals strategist Michael Widmer recently cut his aluminum price forecast and premium assumptions, noting a newly expected surplus of the metal versus a previously expected deficit. A strong U.S. dollar can drag the Midwest premium even lower, akin to the European premium, down 20% from its peak. Aluminum is still considered more defensive compared to other commodities.
Merrill Lynch detailed the issues with currency and China that will affect all aluminum companies:
We previously forecast a global deficit of ~1 Mt in 2015 estimates assuming China would not be a material net exporter. Yet Chinese exports have exceeded our expectations, and now imply a global 1 Mt surplus. We cut the 2015 aluminum estimate 10% to US$1819/t or $0.82/lb and lower the premium $0.01/lb to $0.16 (latest spot $0.22). The premium is paid on top of the quoted London Metal Exchange price for prompt physical delivery. Historically these figures reflected a “convenience yield” and delivery from the next closest delivery point. Recently premiums have been distorted by long warehouse queues.
could reach capacity in a few weeks . If so, prices for oil will be pressured downward. SHLX saw $3 million reduction in cash from a $20 per barrel move in oil due to allowances in service agreements last Q .
Alcoa Inc. Price Target Update
March 4, 2015 by Joe Willams
Alcoa Inc. (NYSE:AA) stock has received a short term price target of $ 18.02 from 13 Analyst. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $2.49. The higher estimate of target price is $20 , while the lower price target estimate is $13
The short interest information of the company was disclosed in the recent information. Alcoa Inc. (NYSE:AA), A sharp reduction of 6,020,162 shares or 16.6% was observed in the short interest of Alcoa, Inc. The interest on February 13,2015 came in at 30,238,993 shares and as per the average daily trading of 21,370,724 shares, the days to cover are 1. The reduced interest is 2.6% of the floated shares. The data of January 30,2015 put the interest at 36,259,155 shares.
JP Morgan downgrades their rating on the shares of Alcoa Inc. (NYSE:AA). The current rating of the shares is Neutral. Earlier, the shares were rated a Overweight by the brokerage firm. Equity Analysts at the Firm lowers the price target to $18.5 per share from $20 per share."
(Bloomberg) -- General Electric Co.’s Jeffrey Immelt, chairman and chief executive officer since 2001, may step down within the next year as investors seek change at the industrial giant, according to Barclays Plc.
(Bloomberg) -- Emerson Electric Co. Chief Executive Officer David Farr may need to start thinking big.
Since taking over as head of the St. Louis-based industrial conglomerate almost 15 years ago, Farr hasn’t completed a public takeover of more than $2 billion, according to data compiled by Bloomberg. Meanwhile, rivals such as Eaton Corp. and Schneider Electric SE have made bigger purchases to strengthen and expand their core businesses -- and their shares have fared better.
Now Farr, who just had his bonus cut, says he’s willing to consider larger deals. That may be exactly what the $40 billion company needs to accelerate sales growth and boost its lagging stock, said Mark Douglass of Longbow Research.
“Investors are starting to get anxious,” Douglass, an Independence, Ohio-based analyst, said by phone. “They just want them to do something more with their capital than just dividends and share repurchases. It needs acquisitions.”
As low crude-oil prices crimp results at the company’s largest unit, which provides processing controls and software to oil producers, Emerson’s small presence in discrete automation - - the equipment and software for assembly lines -- has become a more glaring gap in its portfolio. That may drive it to a takeover of National Instruments Corp., a $4 billion company, or even Mitsubishi Electric Corp.’s factory-automation division
"Dow Chemical (NYSE:DOW)‘s stock had its “sell” rating restated by investment analysts at Deutsche Bank in a note issued to investors on Thursday. They currently have a $4.06 price objective on the stock. Deutsche Bank’s price objective points to a potential downside of 91.76% from the company’s current price." There must be a typo with the decimal point . $4.06 ? That can't be right. Maybe they are expecting WW III or the Apocalypse.
Soros Fund Management upped its position in Dow Chemical (DOW) in the fourth quarter. The position now accounts for 2.58% of the fund’s 4Q14 portfolio. The fund currently owns 5,183,739 shares, up from 2,918,714 shares in 3Q14.
This is a longterm investment stock. All the work EMR is doing to focus the business and globalize sales will take a couple of years . The oil patch has been the culprit as to why EMR's estimates are flat or lower for the year ahead( the oil patch makes up for 15% of sales) . The dividend is the only thing EMR has to offer, because it's so safe as a result of plenty of cashflow . If you are extremely patient , this is a good buy and hold. I own it for the dividend and conservative price movement with expectations the market will be increasingly volatile over the next couple of years.
Price Target Update on Shell Midstream Partners LP.
Mathew Donald · Feb 25th, 2015 · 0 Comment
Shell Midstream Partners LP (NYSE:SHLX) stock has received a short term price target of $ 44.67 from 3 Analyst. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $2.08. The higher estimate of target price is $47 , while the lower price target estimate is $43
The company has also received coverage from the Brokerage Firms. Barclays initiates coverage on Shell Midstream Partners LP (NYSE:SHLX). The rating major has initiated the coverage with an overweight rating on the shares. The Analysts at Barclays announces a current price target of $44 per share.
Zacks lowered shares of Emerson Electric (NYSE:EMR) from a neutral rating to an underperform rating in a report released on Monday. Zacks currently has $53.00 price objective on the stock. .
Zacks’ analyst wrote, “We are downgrading our long-term recommendation on Emerson to Underperform from Neutral, after the company’s sluggish first quarter fiscal 2015 results. Although quarterly earnings figure managed to surpass the Zacks Consensus Estimate, revenues fell behind. Weaknesses in Europe as well as other emerging markets along with negative impact of currency fluctuations continue to affect Emerson’s financials. Further, current volatility in the upstream oil and gas market is adding to the woes. Emerson anticipates such factors to persist in the remaining quarters of fiscal 2015. Especially, pressure due to decline in oil prices is expected to be felt primarily in second half of fiscal 2015. Given these factors, we expect the company’s bottom-line growth to remain restrained in the coming quarters. “
Emerson Electric Price Target Raised to $66.00 at Stifel Nicolaus (EMR)
February 20th, 2015 - 0 comments - Filed Under - by Thomas Dobrow
Emerson Electric Co. logoEmerson Electric (NYSE:EMR) had its price objective raised by Stifel Nicolaus from $64.00 to $66.00 in a research report released on Friday morning. Stifel Nicolaus currently has a buy rating on the stock.
which shows Blackrock owns over 5% of outstanding shares of EMR. BlackRock, Inc. is an American multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager with over $4.59 trillion in assets under management.
Emerson Electric Co. (NYSE:EMR): 14 Analyst have given the stock of Emerson Electric Co. (NYSE:EMR) a near short term price target of $64.36. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $5.51. The higher price target estimate is at $79 while the lower price estimates are fixed at $56.
Alcoa Inc (NYSE:AA) stock has received a short term price target of $ 17.8 from 14 Analyst. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $2.46. The higher estimate of target price is $20 , while the lower price target estimate is $13
Peabody Energy Corporation (NYSE:BTU): 15 Analyst have given the stock of Peabody Energy Corporation (NYSE:BTU) a near short term price target of $11.08. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $4.31. The higher price target estimate is at $22 while the lower price estimates are fixed at $5.
exposure to oil is . My opinion is , and you can take this with a grain of salt as most people do at this board , judging from the likes and dislikes I get, that oil will not be as big a deal for EMR as some have predicted . Aside from drilling , production remains high in the oil patch . And I'm guessing that most of EMR's oil and NG business is midstream and downstream any way , in pipelines and refining , which are doing well currently. But a breakdown of the sales to up, mid and downstream oil and NG would go a long way in predicting how the selloff in the oil patch will affect EMR's results in the coming year.