I do not think it has as much of an effect as you may think. Crude is not a single entity but each field has its own characteristics. Problem in the US is that most of the refineries are not set up to refine the light crude coming from shale plays. They are pretty much full up on shale oil and that is what they want to export.
Shoprite is actually part of Wakefern a retailers cooperative of which shoprite is the largest brand. They also supply Fresh Grocer and Pricerite chains that are part of the cooperative. Recently they have also made deals to supply stores such as Gristedes. In all stores stretch from DC to southern New England and North to Albany. A lot of the stores are franchises. Some of the franchisees own 30 or more stores so I do not know how the stores select product. After I retired from a large telco in 1990's I worked for a number of years for a telco reseller and we had one of the Shoprite franchisees as a customer. He owned 28 stores in North jersey.
Answer: Because shareholders wanted to make money. Fact: Klappa is been CEO for just over 10 years and WEC is up 155% over the last ten years vs. only 70% for the S&P 500. So under his leadership WEC has performed 2.2X better than the S&P. By the way the big UTES in those liberal states ED in NY and PEG in NJ are up less than 1/2 as much as the S&P. Their the joke. But the folks in those states are not laughing because they pay a lot more for their energy and their property tax is at least 5 times higher than a midwestern state.
No. They have good cash flow including the chemical company which is expanding. Also the El Hosn project in Abu Dhabi is pretty much done so capital requirements are not as high.
X-dividend date is August 13th. The next dividend announcement should be the last before they raise the quarterly dividend which is generally in early February. Looking at the past two years the declaration date for the 4th quarter is usually thursday in the 1st week full week of November which should be November 5th.
Even if NEE or other utes were to go down it will be short lived. The Fed will not raise rates very high and it will be slow. The great recession was a lot like the great depression and rates remained low for 20+ years. Go back and look at a long term 30 year Treasury chart. The housing market pop caused the loss of Trillions in lost assets. Plus utilities will continue to have good earnings as they switch to natural gas fired generation. Commissions also realize that there is a need for investment in infrastructure.
Full-time jobs in the U.S. just made a comeback
Friday's labor-market report showed that the number of full-time U.S. jobs as a share of total employment rose to 81.7 percent, the highest level since November 2008. For those worried that this economic recovery has been one that's created only low-quality jobs, this should be really good news.
Utility stocks however are up, The 10 year went from 2.23% down to 2.18%. Utilities are fine. They will continue to increase earnings because of needed investment that state commissions now realize must be made. There is the gas main replacement program plus need to upgrade or replace coal plants. Renewables are coming slowly but they must be backed up by gas fired plants that can be quickly brought on line . All this goes into the rate base. Also rates are not going to go up all that much. Go back and look at long term rates. The only time since 1900 that they were high was after the 1970's resulting from all the inflation. WE are in an environment similar to what happened for the 25 or so years after the bank failures in the early 30"s. Most people today have no idea what happened back then. The biggest mistake investors make is trying to predict the future from the most recent past.
By Zacks Equity Research
August 3, 2015 6:20 AM
If you are looking for a stock in the Waste Removal Svcs industry, Waste Management, Inc. (WM) could be one to watch closely. Right now the company has a Zacks Rank #2 (Buy) and it has been seeing rising earnings estimate revisions as of late.
In fact, the full year consensus estimate has risen from $2.49/share to $2.54/share in the past 30 days, while six estimates have gone higher for the time frame and zero have gone lower. If that wasn’t enough, WM also has Style Score grade of ‘A’ on growth front and ‘B’ on value front so it could be worth considering from that perspective too.
The CEO on the conference call stated that earnings could approach $3.50 once everything is in place and they can sell more product out of the new SC plant. Some of today's manufacturing done in OK will be transferred to SC due to proximity. They have also been talking to customers in the southeast who are interested in Orchids products but the plant needs to be completed first. Finally if you look at today's stock price there is a swing of $1.20 which is a lot. Since good news has come out I think there is more interest in TIS but the small float has the stock trading in relatively wide swings.
Sentiment: Strong Buy
Lets not get ahead of ourselves. Remember this is a small company with a small float and anything can happen in either direction. There is a lot of hype now that investors actually listened to what management had to say. As you get further away from that conference call there will be less info and stocks generally tail off a little. Regardless of what people would like to see stocks follow news and ultimately earnings & cash flow. It is also hard for institutions to either initiate or expand a position in a small company. Personally I am in this for the long pull with both myself and my wife owning it in IRA's.
Sentiment: Strong Buy
Yes. I listen to every call and that is why I have continued to add to my holding while the price was down. Adding a new plant plus the mexican operation gives them ability to ramp up sales. THe company is only a $280M market cap. They are not fighting the laws of large numbers.
Production will not stay at these levels due to huge reductions in CAPEX. Even OPEC will struggle to maintain levels. In addition the 96 million barrels is not all light crude that trades at $48 or whatever. It also includes NGL's whose prices have also come down plus Canadian Tar sands oil. Low NGL and Natural gas prices have created a revolution in the chemicals industry in the US. I stand by my forecast. We are in the early stages of a great bull market which could go on for 10 - 15 years. The 2009 - 2013 was basically a cyclical bounce back. The 1982 - 2000 market allowed me to put my 3 adult children through colleges that are $65K per year today.
The amount of oil over supply is only a million or so barrels a day while existing fields lose 5 million barrels a day of production every year. The world needs to drill enough wells every year just to make up for those 5 million barrels. Demand is also starting to grow again as world wide gasoline sales have picked up 3%this year. The reduction in CAPEX and the fact there is no spare capacity easily pumped will push oil up faster than you think. Back in 1980 when oil tanked the world had a 20% margin of safety. Over the 35 years since then it is down to about 1.5%. It is also not boom or bust but part of a greater commodities cycle that is now down as a result of over investment. Going back to 1900 there have been 3 previous episodes where the down cycle ignited huge bull markets in stocks. When the S&P blew past the cyclical 2000 & 2008 highs in March 2013 it is similar to the pattern that signalled the other 3 great secular bull markets. Since oil has the least over supply it will be dragged higher as a result of economic expansion.
UPS to acquire technology-driven, non-asset based truckload freight brokerage, adding to portfolio with complementary revenue and operational synergies
UPS announces agreement to acquire Coyote Logistics for $1.8 billion
Expands portfolio, adding large scale non-asset based full-truckload (FTL) and transportation management services
Provides growth opportunities for UPS from high growth truck freight market expansion, Coyote organic growth, customer cross-selling
Synergies for UPS backhaul utilization and purchased transportation
Leadership continuity: CEO Jeff Silver, an industry veteran, will continue to lead Coyote, as a UPS subsidiary
Coyote employees, expertise, systems and culture to be supported
Accretive to earnings in 2016
In the short term the stock will be volatile due to the small float. On the positive side only 38.5% of shares are owned by institutions. As TIS develops over the next few quarters this will be a huge source of funds to support much higher prices. We have about 18 months of getting all the new facilities running on all cylinders. There is also a lot of room for margin expansion as management will get product manufactured and shipped form the closest of their three sources. That is not the case today. So we should see both big upside in revenues and then better earnings associated with those revenues due to margin expansion. This is a 2 or more year play because the headline numbers have not been great the last year or so.. A few good quarters back to back and the dividend will attract the institutional investors.
Sentiment: Strong Buy
Looks like pure stock investors (including institutions) also realized that the good report plus value opportunity presented earlier today are starting to win the day. My wife and I own a bunch of this stock in our IRA's. All nine of my grandchildren also own in UGMA accounts.
Eventually NGL's will recover and DCP will add to the bottom line.
PSX had a good quarter. Only downer is DCP midstream JV which is hurt by NGL prices. You would think the stock would be up out of the blocks today but it is down. This stock is in too many of the ETF's that also include oil and gas production companies. It is inching higher as individual stock investors start to offset the ETF effect.
Reports Q2 (Jun) adj earnings of $1.83 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.81.
Construction of the 100,000 BPD Sweeny Fractionator One and the 150,000 BPD Freeport LPG Export Terminal continued during the quarter. The fractionator is approximately 90 percent complete, while the LPG Terminal construction is nearly 50 percent complete. Both projects are on schedule and on budget with startup expected in the fall of 2015 and the second half of 2016, respectively.
Co's worldwide refining crude utilization was 90 percent and clean product yield was 84 percent in the second quarter of 2015.
Increased quarterly dividend 12% to $0.56/share. (They raised it in May during the quarter)
They increased the dividend a number of times so that it matches the rate of the acquired company. It is now $0.4575 per quarter X 4 = $1.83 that you calculated. Based on the $2.72 earnings estimate WEC is now within the 65 - 70% earnings payout rate. It how ever is a much smaller % of cash flow which is about 2X the earnings.