With shares of International Business Machines (NYSE:IBM) trading around $178, is IBM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s MovementIBM is an information technology company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Technology products and services are in high demand worldwide as consumers want to be up-to-speed, and companies always need the latest and greatest to stay ahead of the competition. Cloud computing has been hot in recent times, which has not been good news for IBM. Should the company want to hold on to its market share, it needs to make moves quickly, and provide the technology products and services that worldwide consumers and companies demand.
IBM is swiveling to win over a new market in the competition — India — and attacking Amazon (NASDAQ:AMZN) via ads is a major strategy, according to the Economic Times. Amazon�� new effort in India comes in the wake of a losing a federal contract worth $600 million to Amazon. The contract was with the Central Intelligence Agency. IBM contested the contract in court, trying to claim it for itself ��but the court ruled that the contract remain with Amazon.
Top 10 Bank Companies To Buy For 2015: ITT Industries Inc.(ITT)
ITT Corporation designs, manufactures, and sells a range of engineered products, and provides related services worldwide. Its Defense & Information Solutions segment develops tactical communications equipment, electronic warfare and force protection equipment, radar systems, integrated structures equipment, and imaging and sensor equipment, including night vision goggles, as well as weather, location, surveillance, and other related technologies for military and government agencies. It also provides services comprising air traffic management, information and cyber solutions, large-scale systems engineering, and integration and defense technologies; satellite-based imaging payloads for intelligence, surveillance, and reconnaissance solutions; and high-resolution commercial imaging systems with earth and space science applications, climate and environmental monitoring sensors and systems, and GPS navigation and software applications designed for image and data processing and dissemination. The company?s Fluid Technology segment provides water transport and wastewater treatment systems, pumps and related technologies, and other water and fluid control products with municipal, residential, commercial, and industrial applications. Its Motion & Flow Control segment manufactures shock absorbers and brake friction materials for the transportation industry; switch applications for the industrial and aerospace industries; electrical connectors used in telecommunications, computers, aerospace, medical, and industrial applications; and a range of pumps and tailored products for marine, food and beverage, and general industrial markets. The company was formerly known as ITT Industries, Inc. and changed its name to ITT Corporation in July 2006. ITT Corporation was founded in 1920 and is based in White Plains, New York.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of ITT Educational Services (NYSE: ITT ) were flying higher today, gaining as much 34% after smashing analyst estimates in its quarterly report.
- [By Stephen Simpson, CFA]
This is a logical deal for SKF on multiple fronts. For starters, Kaydon will meaningfully expand the company's U.S. presence - something it could have done on its own eventually, but certainly not without spending money. With that, there is the possibility of using Kaydon's existing U.S. footprint to sell more SKF products and further trouble rivals like RBC Bearings (ROLL) and ITT (ITT).
- [By MONEYMORNING]
This 85-year-old forest products company operates as a Real Estate Investment Trust (REIT) after being first acquired, then later spun off, by ITT Corp. (NYSE: ITT).
- [By Aaron Levitt]
Spun-off from industrial giant ITT (ITT) a few years ago, Xylem (XYL) could be a great starting point for investors looking at water stocks. Aside from its cool and appropriate name, XYL provides host of equipment — pumps, controllers and filtration devices — for wastewater treatment plants across the globe.
Top 10 Information Technology Stocks To Watch For 2014: Home BancShares Inc.(HOMB)
Home BancShares, Inc. operates as a holding company for the Centennial Bank that provides various commercial and retail banking, and related financial products and services to businesses, real estate developers, investors, individuals, and municipalities. It offers various deposit products, including checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial real estate, construction and land development, commercial and industrial, residential real estate, agricultural, and consumer loans. In addition, it provides Internet banking and voice response information, cash management, overdraft protection, direct deposit, safe deposit boxes, the United States savings bonds, and automatic account transfers services. Further, the company provides trust services focusing on personal trusts, corporate trusts, and employee benefit trusts, as well as writes insurance policies for commercial and personal lines of businesses. As of December 31, 2010, it operated 49 branches in Arkansas, 9 branches in the Florida Keys, 6 branches in central Florida, 3 branches in southwest Florida, and 29 branches in the Florida Panhandle. Home BancShares, Inc. is headquartered in Conway, Arkansas.
Advisors' Opinion:- [By Sean Williams]
What: Shares of Home BancShares (NASDAQ: HOMB ) , the holding company of Centennial Bank, jumped as much as 13% after receiving an analyst upgrade.
Top 10 Information Technology Stocks To Watch For 2014: Endurance Specialty Holdings Ltd (ENH)
Endurance Specialty Holdings Ltd. underwrites specialty lines of personal and commercial property and casualty insurance and reinsurance worldwide. The company operates in two segments, Insurance and Reinsurance. The Insurance segment provides agriculture insurance covering traditional multi-peril crop insurance, crop hail, livestock risk protection, and other agriculture risk management products; and professional lines of insurance products, including directors� and officers� liability, errors and omissions, employment practices liability, environmental liability, and pension trust liability insurance. This segment also offers casualty and other specialty insurance products for third party liability; hospital medical professional liability; contract and commercial surety; and workers� compensation, as well as property insurance primarily for earthquake and flood coverage. The Reinsurance segment provides catastrophe reinsurance for catastrophic perils primarily for pro perty and workers� compensation business; property reinsurance for property insurance policies; and casualty reinsurance for third party liability exposures, such as automobile, professional, directors� and officers�, and umbrella liabilities, as well as for workers� compensation. This segment also offers aerospace reinsurance covering hull, aircraft liability, and aircraft products; marine reinsurance of bluewater and brownwater hull, and cargo risks; surety reinsurance for contract and commercial surety, and fidelity insurers; agriculture reinsurance for risks associated with the production of food and fiber; and personal accident and terrorism reinsurance products. The company distributes its products through independent agents, and insurance and reinsurance brokers. Endurance Specialty Holdings Ltd. was founded in 2001 and is based in Pembroke, Bermuda.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading UP
Aspen Insurance Holdings (NYSE: AHL) shares shot up 11.05 percent to $43.72 after Endurance Specialty Holdings (NYSE: ENH) offered to buy Aspen Insurance for $47.50 per share in a cash and stock deal. - [By Jake L'Ecuyer]
Equities Trading UP
Aspen Insurance Holdings (NYSE: AHL) shares shot up 11.33 percent to $43.83 after Endurance Specialty Holdings (NYSE: ENH) offered to buy Aspen Insurance for $47.50 per share in a cash and stock deal.
Top 10 Information Technology Stocks To Watch For 2014: SBA Communications Corporation(SBAC)
SBA Communications Corporation owns and operates wireless communications towers primarily in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, and Panama. The company leases antenna space primarily to wireless service providers on towers and other structures that it owns, manages, or leases from others. As of December 31, 2011, it owned 10,524 tower sites. The company also manages or leases approximately 4,800 actual or potential communications sites. In addition, it provides various site development consulting services comprising network pre-design, site audits, identification of potential locations for towers and antennas, support in buying or leasing of the location, and assistance in obtaining zoning approvals and permits, as well as engages in assisting wireless service providers in developing and maintaining wireless service networks. Further, the company offers various site development construction services, including tower and related site c onstruction; antenna installation; and radio equipment installation, commissioning, and maintenance. SBA Communications Corporation was founded in 1989 and is headquartered in Boca Raton, Florida.
Advisors' Opinion:- [By Jon C. Ogg]
We just gave a fresh synopsis of which telecom and wireless players could still be up for M&A in the final round of consolidation. American Tower’s market cap is about $28 billion and shares are up more than 4.5% at $71.75. To show how hard things have been, the 52-week trading range is $67.89 to $85.26. What today’s transaction does is quite simply add value to the rest of the public companies that own and operate cell towers:
Crown Castle International Corp. (NYSE: CCI) is up almost 2.5% at $70.90, against a 52-week range of $63.16 to $81.16. SBA Communications Corp. (NASDAQ: SBAC) is up about 1.8% at $76.70. against a 52-week range of $59.00 to $82.31.American Tower expects that the portfolio addition will generate about $345 million in revenues and approximately $270 million of gross margin in 2014. If you value the deal solely on the 5,400 or so owned U.S. towers, this comes up to about $611,000 per tower before calculating the debt and other rights. Suddenly, SBA Communications Corp. (NASDAQ: SBAC) is vindicated because a deal it made in 2012 was deemed pricey as it paid about $1.45 billion for 3,252 towers from TowerCo, at about $445,000 per tower. Crown Castle also has spent close to $2.4 billion to acquire T-Mobile cell tower rights in late 2012.
Top 10 Information Technology Stocks To Watch For 2014: American Capital Mortgage Investment Corp (MTGE)
American Capital Mortgage Investment Corp., incorporated on March 15, 2011, is a real estate investment trust (REIT). The Company�� investment objective is to provide risk-adjusted returns to its investors over the long-term through a combination of dividends and capital appreciation. It invests to achieve this objective by selectively constructing and managing a mortgage investment portfolio consisting of asset classes that, when properly financed and hedged, are designed to produce risk adjusted returns across a variety of market conditions and economic cycles. In December 2013, American Capital Mortgage Investment Corp, through its subsidiary acquired Residential Credit Solutions, Inc.
The Company is externally managed and advised by American Capital MTGE Management, LLC. American Capital MTGE Management, LLC is an indirect subsidiary of American Capital, LLC, which is a wholly portfolio company of American Capital, Ltd.
Advisors' Opinion:- [By Sean Williams]
These spreads are what have allowed mREITs to pay out double-digit yields for years now. However, with spreads tightening as mortgage rates hit their highest levels in two years, dividend cuts are beginning to cycle through the sector. American Capital Agency (NASDAQ: AGNC ) , Annaly Capital Management� (NYSE: NLY ) , and American Capital Mortgage Investment (NASDAQ: MTGE ) all recently cut their dividends�in lieu of smaller investment profits.
- [By Dan Caplinger]
But those fears continued to expand in the second quarter, and the bond market finally made significant moves that hurt bond prices and sent yields soaring. In response, many mortgage REITs expanded their purview to go beyond their traditional agency-backed securities. Annaly Capital (NYSE: NLY ) , for instance, started adding securities backed by commercial mortgages, while Armour Residential (NYSE: ARR ) set the stage for a shift by changing its charter to allow non-agency purchases. But because American Capital Agency has a sister REIT, American Capital Mortgage (NASDAQ: MTGE ) , that has a broader scope, CIO Gary Kain plans to keep American Capital Agency's investing strategy true to its name by staying focused on agency-backed bonds.
- [By David Hanson and Matt Koppenheffer]
One of the biggest movers today is Armour Residential REIT (NYSE: ARR ) , falling over 6% at one point. Two mREITs run by Gary Kain, American Capital Agency (NASDAQ: AGNC ) and American Capital Mortgage (NASDAQ: MTGE ) , were also trading lower.
- [By Amanda Alix]
2. Congress is eyeballing the REIT sector's special tax status
The U.S. Congress is currently going over the tax code with a fine-tooth comb looking for loopholes, and the REIT industry's special tax status is coming under review. Though The Wall Street Journal�notes that a change in the law that allows REITs to avoid corporate taxes on income as long as they pay out 90% of earnings isn't certain, neither is it out of the realm of possibility -- possibly making dividends like those paid by American Capital Agency and its hybrid cousin American Capital Mortgage (NASDAQ: MTGE ) a lot less hefty.
Top 10 Information Technology Stocks To Watch For 2014: Neogen Corporation(NEOG)
Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. The company?s Food Safety segment offers diagnostic test kits and complementary products to detect dangerous and/or unintended substances in human food and animal feed, such as foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, drug residues, pesticide residues, and general sanitation concerns. Its products also comprise bioluminescence-based diagnostic technology for adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed producers, meat and poultry processors, seafood processors, fruit and vegetable producers, grain producers and processors, food and beverage processors, and dairies; laboratories and producers of pharmaceuticals, cosmetics, veterinary vaccines, and nutraceutical products; and various re gulatory agencies. The company?s Animal safety segment provides pharmaceuticals, rodenticides, disinfectants, vaccines, veterinary instruments, topicals and diagnostic products, and genetic testing services to the animal safety market. Its drug detection immunoassay test kits are used for the detection of abused and therapeutic drugs in farm animals and racing animals, such as horses, greyhounds, and camels; detection of drug residues in meat and meat products; and human forensic toxicology drug screening applications. This segment?s products are also used to maintain sanitary conditions and limit the potential hazards of bacteria, fungi, and viruses. In addition, it offers various products for researchers to detect biologically-active substances; and proprietary substrates for other diagnostic test kit manufacturers. The company sells its products directly, as well as through distributors and retail chains. Neogen Corporation was founded in 1981 and is headquartered in La nsing, Michigan.
Advisors' Opinion:- [By MONEYMORNING.COM]
And with very quick gains of 9% in BRF SA (NYSE ADR: BRFS), 5.2% in South American agricultural play Adecoagro SA (NYSE: AGRO) and 1.6% in high-tech agribusiness player Neogen Corp. (Nasdaq: NEOG), we're doing well with our plays on (pockets of) accelerating U.S. inflation.
Top 10 Information Technology Stocks To Watch For 2014: Seagate Technology.(STX)
Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise, client compute, and client non-compute market applications worldwide. The company?s products are used in enterprise servers, mainframes, and workstations; desktop and notebook computers; digital video recorders; personal data backup systems; portable external storage systems; and digital media systems. It also provides data storage services for small to medium-sized businesses, including online backup, data protection, and recovery solutions; and ships external backup storage solutions under its Free Agent Go and Free Agent Go Flex product lines. The company sells its products primarily to original equipment manufacturers, distributors, and retailers. Seagate Technology Public Limited Company was founded in 1979 and is headquartered in Dublin, Ireland.
Advisors' Opinion:- [By Michael J. Carr]
While Einhorn has proven his ability to find winners on the short side, he maintains a "net long" position in his funds, which means he has more long positions than shorts. One of his recent winners on the long side was Seagate Technology (Nasdaq: STX), which Einhorn began buying in 2011 and resulted in a 64% average annual return in less than two years.
- [By Mukesh Baghel]
Data storage player Seagate Technology (NASDAQ: STX ) has had a rough go this year. The company is losing market share to rival Western Digital (NASDAQ: WDC ) , and its financial performance is also on the decline. Seagate's revenue and profit were down in the second quarter on a year-over-year basis, so it's not astonishing to see that the company's shares have taken a beating in 2014.
- [By Sue Chang]
Other companies scheduled to release quarterly results on Monday include Caterpillar Inc. (CAT) , Seagate Technology Inc. (STX) , United States Steel Corp. (X) , and Zions Bancorp (ZION) .
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