Shares of Valero Energy (VLO) are gaining ground after research firm Oppenheimer upgraded the stock to Outperform from Market Perform in a note to investors earlier today. Other refining stocks are higher as well in early afternoon trading. WHAT'S NEW: Valero can buy back $1B-$2B of its shares and increase its cash dividend by 10% annually, while keeping its debt low relative to its cash balance and maintaining strong financial flexibility, wrote Oppenheimer analyst Fadel Gheit. Meanwhile, the company should continue to benefit from several ongoing trends, including increased supplies of crude oil, cheap natural gas and continued wide differentials between the prices of brent oil and West Texas Intermediate oil, Gheit noted. The analyst put a $70 price target on Valero's shares. WHAT'S NOTABLE: Valero reported stronger than expected first quarter results on April 29. PRICE ACTION: In early afternoon trading, Valero gained 1.7% to $59.23. Other refiners also advanced, with Phillips 66 (PSX) climbing 1.3% to $85.02, Tesoro (TSO) rising 1.3% to $55.77, and Marathon Petroleum (MPC) gaining 1.4% to $97.18.
Smartest thing they did was to split the company. Now both can concentrate on what is best for each business. They had way to many assets and poor capital employment. One share of COP + 1/2 share of PSX is within 50 cents of $120. Plus the dividend increases and better ROCE. I kept all the shares and loaded up on PSX when it was around $35/share so that i have about equal numbers of shares in both. One area where many Wallstreeters are right is in splitting up complex companies to realize underlying value.
Over 55% is owned by insiders or institutions, so I do not think you will see any action there. As for the rest of the holders, I think a lot of people own it for the dividend and probably do not watch it that closely. It is not like this is Apple. As far as the deal it looks good. national exposure over time is a must because a lot of the chains want to deal with a few suppliers. Probably why the Mexican company has had problems breaking in to the US market. TIS will be able to use it's relationships with national chains they service in the Mid-west. Remember this company had a big run until it was hit by the 10% increase in shares for management. That really did not sit well with some investors who bailed. The next year may be choppy; however, once the new machines come on line and we can see clarity on this deal we could move higher. I am still making money, so I will sit and collect the 5+% dividend.
Not happening. They have been selling property not buying. They have more than they can develop now. Plus they do not want to drill for gas.
The US is not legislating rules but the Transportation department has been working on new standards and that is where it sits today. They will supposedly have these standards out by Summer. In the mean time all cars made since 2011 were manufactured to new industry standard CPC-1232, which also complies with the new Canadian rules. 55,000 cars have been ordered thru 2015, all with the new standards. This is not just an issue with crude oil but also chemicals and more importantly ethanol, which has been involved in a number of accidents.
Cabot Corporation (CBT) today announced results for its second quarter of fiscal year 2014.
Strong volumes in Reinforcement Materials and Performance Materials
Purification Solutions delivered sequential improvement in EBIT
Announced the divestiture of the Security Materials business for approximately $20 million
New PROPELTM carbon black products launched for tire applications
Commenting on the results, Cabot President and CEO Patrick Prevost, said, “We achieved another strong quarter of business performance in fiscal 2014. The Performance Materials segment delivered a record EBIT and volumes increased as compared to the prior year in both the Performance Materials and Reinforcement Materials segments. Demand in our key end markets improved and we commercialized new capacity. Purification Solutions EBIT improved sequentially as a result of revenue growth and lower fixed costs. At the corporate level, we saw slightly higher unallocated costs associated with increased project activity and a higher tax rate due to the expiration of the R&D tax credit in the U.S. and the geographic mix of earnings. On the strategic front,” Prevost continued, “we announced our plans to divest our Security Materials business at an attractive value for our shareholders. In addition, our new product introductions continue to accelerate and during the quarter we launched a new PROPELTM line of carbon black products for tire applications that offer lower rolling resistance and improved durability for our tire customers.”
Again obvious you cannot read the cash flow statement. Go to the news release and read the entire document. This is finance 101.
Again, they were cash flow positive in 1st quarter due to operations and sale. They paid down debt. Please, please read the whole news release before running your mouth. Makes you look like an idiot.
They were cash flow positive 1st quarter between operations and a sale of non core property. They are not that far form cash flow neutral.
Obvious you did not or could not read the cash flow statement. They actually increased cash this quarter between operations and a sale. Cash flow positive first quarter and are close to cash flow neutral without sales. Please do not run your mouth when you do not understand the statements.
The beat due to all the non-refining businesses. The PE based on this years estimate is only around 12X, held down by refining being the dominant business. If this was just a pure chemical company we could be approaching $140 per share. Juust remember a really bad refining quarter cen send this stock South faster than you can say "how do you do".
Up about 50 cents 15 minutes after the open. Big chunk of the earnings related to the share swap. Refining is less than stellar. Future of PSX is based on Chemicals, midstream, DCP midstream and marketing and specialty. All of those businesses delivered big profits.
Nothing that I heard on the conference call. More importantly, Cummins has quite a few plants that are way underutilized abroad. Some as low as 40%, yet do to the management they are at least break even or in some cases profitable. Any uptick in orders will lead to explosive growth in earnings.
The problem with Nat gas vehicles is that they are just getting into the market and large users want to test them out before making a large commitment. At some point there will be a huge jump in that product but we are not there yet.
Right now the general consensus is that the US is starting to perk up, thus this quarters better than expected results. The rest of the world still has a long way to go.
APPL is a company that has many more individual owners (38%) of shares. Apple wants individual owners because the same people buy their products. This is not true for CMI.
What we really need is for the refining business to at least hold the line and the high growth business, CPchem, midstream, PSX share of the MLP and DCP to out perform. Reducing refining as a total % of revenues and earnings will allow for earnings stability and PE expansion.
Adjusted diluted earnings per share for Q1-2014 increased eight per cent to C$0.66 (1)
VANCOUVER, April 22, 2014 /PRNewswire/ - CN (CNR.TO) (CNI) today reported its financial and operating results for the first quarter ended March 31, 2014.
First-quarter 2014 financial highlights
Net income was C$623 million, or C$0.75 per diluted share, compared with net income of C$555 million, or C$0.65 per diluted share, for the year-earlier quarter.
Excluding gains on rail line sales in both the 2014 and 2013 periods, first-quarter 2014 adjusted diluted earnings per share (EPS) increased eight per cent to C$0.66 from adjusted diluted EPS of C$0.61 in Q1-2013. (1)
Adjusted Q1-2014 net income of C$551 million increased six per cent over adjusted net income of C$519 million for the first quarter of 2013. (1)
Q1-2014 operating income increased five per cent to C$820 million.
First-quarter 2014 revenues increased nine per cent to C$2,693 million, revenue ton-miles grew by five per cent, and carloadings increased one per cent.
CN's operating ratio for Q1-2014 deteriorated by 1.2 points to 69.6 per cent from 68.4 per cent the year before.
Free cash flow for the first quarter of 2014 was C$494 million, compared with C$151 million for the year-earlier quarter. (1)
This equity is primarily owned by Sanofi and institutions and among those a lot of hedge funds. We are exceptions as individuals owning this stock. Take a look at the number of posts on the board. Not many compared to companies with tons of individuals. Shares become available when hedge funds sell short and then Sanofi scoops up the shares. I can see a day in the not too distant future where there will be a massive short squeeze. Owning REGN is a beautiful thing.
WM is a company that over the years has grown through acquisitions and used debt to make those takeovers. The debt looks especially high because they have bought back a lot of stock. The treasury stock line on the balance sheet is negative $5.3 Billion. If you add that back in then the debt to equity would be 50/50. WM is more like a utility than an industrial company.
Last split the stock was about $170/share. 70%+ institutional ownership. Is there enough individual investors to ever split the stock again since institutions really do not care?