We issued an updated research report on Enbridge Energy Partners L.P. (EEP - Analyst Report) on Aug 25, 2014. The partnership’s diversified business portfolio and stable fee-based operating income are catalysts to unlock value for shareholders. However, a volatile natural gas price environment is expected to weigh on the stock.
Enbridge Energy Partners is a master limited partnership, engaged in the gathering, processing and transmission of natural gas and crude oil. The partnership is best known for its ownership of the Lakehead System, one of the world’s longest petroleum pipeline systems that transfers over 60% of the Canadian oil output to the U.S. This unique position helps the partnership to capitalize on the growing Canadian oil sands production.
A focus on fee-based and diversified businesses has enabled Enbridge Energy Partners to dilute its business risks, as well as steadily enhance its earnings profile. We remain positive on Enbridge given its wider exposure to the Bakken Shale, the Haynesville Shale and GraniteWash. We believe these growth prospects have not been fairly captured by its current yield of approximately 6.6%.
Zacks reissued their neutral rating on shares of Wells Fargo & Co. (NYSE:WFC) in a research note released on Wednesday morning. They currently have a $54.00 target price on the stock.
Zacks’ analyst wrote, “Wells Fargo’s second-quarter 2014 earnings outpaced the Zacks Consensus Estimate though it was in line with the prior-year quarter earnings. Results reflected growth in total loans and deposits amid a challenging economy and disciplined expense management. However, the company experienced a fall in non-interest income. In the long term, we remain optimistic about the company, based on its diverse geographic and business mix. Strategic acquisitions and a solid capital position are expected to improve profitability going forward. Yet, we believe top-line headwinds would persist, given the protracted economic recovery. The company’s unrelenting legacy mortgage issues and regulatory pressure also remain a concern
I think it makes more sense to perhaps over pay for MRO now then to possibly lose your whole investment in Artic drilling to the former Soviet Union. What guarantees does XOM ,TOT and BP have that a gov't take over of the Siberian investment won't happen in the future ?
CALGARY, Alberta, Aug 11 (Reuters) - Enbridge Inc, Canada's largest pipeline company, said on Monday it has no plans to imitate rival Kinder Morgan Inc's $44 billion plan to consolidate its publicly traded units into a single company.
Enbridge, whose separately traded affiliates include Enbridge Energy Partners and Enbridge Income Fund Holdings Inc, said it has no interest in returning those companies into the corporate fold and cannot see a competitive advantage coming from such a move
in Countrywide case. (Reuters) - Bank of America Corp on Thursday asked a federal judge to throw out a jury verdict finding it liable for fraud over defective mortgages sold by its Countrywide unit that resulted in a $1.27 billion penalty.
The bank urged U.S. District Judge Jed Rakoff in Manhattan to rule for it as a matter of law or order a new trial, arguing that the evidence at trial did not support the jury's October 2013 verdict.
Bank of America said prosecutors were required at trial to prove that loans originated by Countrywide Financial Corp in a process called "Hustle" that were then sold to government mortgage finance giants Fannie Mae and Freddie Mac were not as good as the lender represented.
"The trial evidence, even viewed in the light most favorable to the government, did not prove fraud under this standard," the bank's lawyers wrote
TheStreet Ratings team reiterates its "buy" rating on Bank of America (BAC_) with a ratings score of B. The stock was up 0.8% to $16.14 at 12:03 p.m.
TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income
One stock that might be an intriguing choice for investors right now is Alcoa Inc. (AA). This is because this security in the Mining industry is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Mining industry space as it currently has a Zacks Industry Rank of 75 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Alcoa is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
In fact, over the past month, current quarter estimates have risen from 17 cents a share to 18 cents per share, while current year estimates have risen from 60 cents a share to 62 cents per share. This has helped AA to earn a Zacks Rank #2 (Buy), further underscoring the company’s solid position.
So, if you are looking for a decent pick in a strong industry, consider Alcoa. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
Bill & Melinda Gates Foundation Trust is a non-operating private foundation that works to help people lead healthy, productive lives. Its equity portfolio, worth almost $20 billion, is managed by Michael Larson. Nearly half of this portfolio is invested in Berkshire Hathaway Inc. (NYSE:BRK.B); Warren Buffett has been donating stock to the Foundation, piece-by-piece, over the past decade. Apart from this huge stake in Berkshire Hathaway Inc. (NYSE:BRK.B), the fund owns approximately $10 billion in other companies’ stock. In this article we will take a look at its top positions and the changes that they have experienced over the second quarter of the year. The companies implied are: The Coca-Cola Company (NYSE:KO), Caterpillar Inc. (NYSE:CAT) and Canadian National Railway (USA) (NYSE:CNI).
Excluding Berkshire Hathaway Inc. (NYSE:BRK.B), the foundation’s largest bet is placed on The Coca-Cola Company (NYSE:KO), a beverages giant that needs no introduction whatsoever. For the sixth consecutive quarter, the Trust’s position remained untouched, at 34 million shares. However, the stock returned 8.75% over the second quarter, making the fund’s holdings gain in value. According to the last 13F, the fund’s stake in the company is worth more than $1.44 billion.
Alcoa Inc (NYSE:AA) is a stock Druckenmiller is bullish on, having boosted his fund’s stake in the company by 15% during the second quarter. As a result, Duquesne Capital now holds 5.74 million shares of Alcoa Inc (NYSE:AA), an investment valued at $85.5 million. Robert Rodriguez and Steven Romick are convinced the company still has room to grow and have slightly increased their fund’s investment. In its latest 13F filing, First Pacific Advisors LLC has reported ownership of 21.9 million shares with an estimated worth of $326 million.
DreamWorks Animation SKG Inc. (NASDAQ:DWA) has received a much needed boost recently, as it hired the CFO for Latin American operations at DirecTV - Fazal Merchant - to be its CFO. The market liked the move and rewarded the company with an almost 10% increase in share price.
That follows on the heels of hiring former Disney executive Mark Zoradi in July, who was a key person in the launching of Walt Disney Home Entertainment and the Disney Channel.
Another positive catalyst for the company is the performance of "How to Train Your Dragon 2," which opened in China with a $26 million weekend. This underscores the fact that DreamWorks appears to have figured out China, which makes its decision to build the DreamCenter in Shanghai a good choice. That includes Oriental DreamWorks, which will be an animation studio; a 500-seat IMAX theater; and a variety of performance venues at the location.
All of this is good news for the company, but it must find the answer to some of its poor decisions on film choices and produce a higher percentage of hits than it has been, or it will continue to underperform its peers. Over the last 12 months, it is down over 26%, even after moving up almost 10% recently.
The company generated a reported $122.3 million in revenue with a net loss of $15 million, or $0.18 per share, in the latest quarter.
What's important to me with the numbers is how some of the segments contributed to the performance and what that implies for the company going forward.
The first thing to understand is DreamWorks has said 2015 is going to be an investment year, meaning its main focus will be on laying a foundation for the future.
Equities research analysts at Brasil Plural began coverage on shares of The Coca-Cola Company (NYSE:KO) in a research note issued to investors on Monday. The firm set an “overweight” rating and a $46.00 price target on the stock. Brasil Plural’s price target indicates a potential upside of 11.87% from the company’s current price
You and David Winters both agree that Buffet hasn't done enough to prod management . This Monster deal will be a tipping point for Kent. He's leveraging KO's distribution strength to sell a domestic product worldwide. If successful, we will see more of the same , hopefully with KO entering the snack food business. The deal is a smart one , because KO only has a 17% stake in Monster , so if the drink doesn't catch on abroad , all isn't lost , including the 17% stake . But if it is successful, KO stands to increase revenue and realize an appreciation in share price of Monster . This deal will also give Kent credibility as the CEO after taking flak for giving himself and management the largest performance based compensation package in KO history. What makes KO attractive is the Monster potential when compared to the worldwide phenomenon of Red Bull which sells 3 or 4 times the amount of energy drinks than Monster worldwide . Also the potential for similar deals for other domestic brands . And that is why KO is a good investment . All these endeavors contain risk . So if you buy into this new strategy , you have the down side of KO's regular beverage business, and you have the potential upside of the risky deal making business. Considering KO's ability to distribute worldwide it looks like a nobrainer on the surface .
On Aug 18, we issued an updated research report on coal mining company Peabody Energy Inc. (BTU). Peabody’s presence in two of the fastest growing U.S. coal markets and its exposure in Australia could help it to overcome the current slackness in the coal market. However, the U.S. Environmental Protection Agency’s (:EPA) proposal to curb pollution could negatively affect coal demand and consequently impact the future prospects of the miners.
Peabody expects a revival in thermal coal demand globally, led by continuous urbanization and industrialization in the Asian countries, primarily in China and India. A World Steel Association projection indicates an improvement in met coal sales driven by higher steel consumption. Harsh winter conditions in the U.S. had led to higher usage of coal-fired units to meet increasing demand for electricity, thereby lowering stockpiles. This could also create fresh demand for thermal coal.
However, these positives are negated by the ongoing congestion in railroads services in the U.S. Peabody lowered its 2014 U.S. coal sales target to 185–190 million tons from 185–195 million tons to accommodate the loss in sales due to railroad congestion. Increasing pressure from natural gas and alternate energy sources continue to weigh on the coal stocks as well.
In June this year, the EPA proposed a Clean Power Plan, the primary objective of which is to cut down emissions from existing coal-fired power plants by 30% over the 2005 to 2030 time frame. If the proposal is accepted, it could hurt Peabody s domestic thermal coal sales as coal-fired power units are a major contributor of greenhouse gas generation.
Coal still grabs a major share in the global energy mix, despite increasing pressure from other fuel sources. Peabody’s strategic presence in the U.S. and Australia could help it to benefit from any revival in the coal markets.
However, Peabody will have to ward off competition from other coal producers like Alliance Resource Partners (ARLP), Alpha Natural Resources, Inc. (ANR) and Arch Coal, Inc. (ACI).
Considering the US is in the first third of a domestic oil and gas build out , you've made a wise choice . What's in your favor ? If the COP split up is good example , then MRO could get close to doubling in a year . Selling off of foreign assets and deploying the funds domestically by stock buybacks and oil and gas development mean growth and improved margins . MRO is improving the balance sheet while it improves earnings per share . Not a bad combination of events. MRO's stock price will be affected by swings in oil and gas , since MRO is now a pure oil and Natgas producer
considering they are in the first quarter of a consolidation effort . I have to agree with some of the previous posts , though . SPLS needs to work on marketing , big time .
it appears the new CFO gets $700,000 a year salary a $300,000 signing bonus,$1 million on Dec 31 2014 and a must be board approved $1.2 million bonus Oct 31 2014 .
On August 18, 2014, DreamWorks Animation SKG, Inc. (the "Company") announced that Fazal Merchant will become Chief Financial Officer of the Company, effective September 15, 2014. Effective as of the commencement of Mr. Merchant's employment, Lewis Coleman, who has served as the Company's Vice Chairman since August 1, 2014, as its Chief Financial Officer since February 2007, as its acting Chief Accounting Officer since June 16, 2014, as its President from December 2005 until August 1, 2014 and as a member of its Board of Directors since December 2006, will no longer serve as the Company's Chief Financial Officer. Mr. Coleman will continue to serve as the Company's Vice Chairman and acting Chief Accounting Officer and as a member of its Board of Directors. Other than Mr. Coleman's title change, the Company and Mr. Coleman did not amend the amended and restated employment agreement between the Company and Mr. Coleman, dated July 28, 2014 (the "Coleman Agreement"), or enter into any new agreements or arrangements in connection with Mr. Coleman no longer serving as the Company's Chief Financial Officer. The Coleman Agreement was filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed on August 1, 2014, and the material terms of the Coleman Agreement were described in such Form 8-K and the Company's Current Report on Form 8-K/A filed on June 20, 2014. A copy of the press release announcing Mr. Merchant's employment is attached as Exhibit 99.2.
Prior to joining the Company, Mr. Merchant was Senior Vice President and Chief Financial Officer for DIRECTV Latin America since November 2013. Until April 2014, Mr. Merchant also served as Senior Vice President, Treasurer and Corporate Development for DIRECTV. From 2011 until July 2012, he was a managing director and group head at Royal Bank of Scotland. Prior to that, he was managing director in the Investment Banking Division at Barclays Capital where he spent seven years advising clients on strategy, financing and risk solutions. He also spent nine years at Ford Motor Company in various treasury and finance management positions across functions in the U.S. and Europe. Mr. Merchant is 41 years old.
In connection with Mr. Merchant's appointment, the Company's Compensation Committee (the "Compensation Committee") approved an employment agreement between the Company and Mr. Merchant (the "Employment Agreement"). The material terms and conditions of the Employment Agreement are summarized below.
Term. The Employment Agreement is effective as of September 15, 2014 and provides for an initial term of employment through December 31, 2017, subject to the Company's exclusive, irrevocable option to extend the term of Mr. Merchant's employment through December 31, 2019.
Title. Pursuant to the Employment Agreement, Mr. Merchant's title will be Chief Financial Officer of the Company.
Salary and Annual Incentive Awards. Under the Employment Agreement, Mr. Merchant will have an annual base salary of $700,000. In addition, Mr. Merchant will be eligible, subject to annual approval by the Compensation Committee, to receive annual cash incentive awards with an aggregate grant-date target value of $700,000, which will be prorated for calendar year 2014. Under the Employment Agreement, Mr. Merchant also will be paid a bonus of $350,000 when he commences employment with the Company, which will reduce any annual cash incentive award that may become payable for calendar year 2014.
Long-Term Equity Incentive Awards. Mr. Merchant will be eligible, subject to annual approval by the Compensation Committee, to receive annual equity-based incentive awards, beginning in October 2014, consistent with other senior executives, with an annual aggregate grant-date target value of $1,200,000.
Additional Cash Payments. Under the Employment Agreement, while Mr. Merchant remains employed by the Company, he will receive cash payments equal to $1,000,000, $1,300,000 and $700,000 on each of December 31, 2014, 2015 and 2016, respectively. In addition, Mr. Merchant will receive any unpaid portion of these payments if his employment terminates due to his death or disability, if the Company terminates his employment other than for cause or if Mr. Merchant terminates his employment for good reason.
Benefits and Business Expense Reimbursement. Under the Employment Agreement, Mr. Merchant is eligible for certain other benefits (such as reimbursement of reasonable legal fees and expenses associated with entry into the Employment Agreement and other business expenses
turn out to be a good deal maker . We have to see where the Monster deal is in a year. And what the next deal is . It seems like a no brainer for KO to go into snack foods. We do know this about Kent , he is going to be the most well compensated CEO of KO ever. By the way , David Winters has sold his entire position in KO , because he could not get Buffet to intercede in the new KO compensation package for management.
According to the analysts ,deep water drilling will wane with lower oil prices . There will be business , but the question remains , who will get the limited amount of contracts ? Well it appears the drillers with the latest tech , as ESV , with the second youngest fleet , and DO, with the oldest fleet ,have demonstrated that the newer equipment gets the contract. With ESV's latest announcement to put up for sale it's oldest rigs , it appears they are now aiming to be the driller with the number one ranking in the youngest fleet category.