Friday's 300 point drop had me looking about for bargains to add to my portfolio. The first bargain that I added to the array of portfolios I manage was Rayonier Advanced Materials, 8.00% Series A Mandatory Conv Preferred Stock (RYAM-A). I had purchased a few shares at $97.00 per share soon after the initial offering. As I watched it descend on Friday, I began adding shares to my own portfolio and to other portfolios I manage at $87.50 to $89.00 per share since at $89.00 per share it offers a 9% yield.
This stock has several interesting provisions not often found in other preferred issues. The first is that its dividend is eligible for the 15% tax rate and the second is that it must be converted to common stock on 8/15/2019. (Quantumonline.com) At the time of conversion one gets 6.5923 shares of Rayonier common if the price equals or exceeds $15.17 per share or 7.7459 shares if the market price is $12.91 or less. Conversions between these two prices will be apportioned dollar for dollar, or in other words one will get common shares that will equal $100.00, the original offering price of the preferred. Because of the mandatory conversion RYAM-A will likely track the common stock price more closely than is usual among preferred issues and will increasingly do so as the conversion time nears.
Hot Trucking Stocks To Own Right Now: Dermira, Inc.(DERM)
Advisors' Opinion:- [By Ben Levisohn]
Current market dynamics, particularly in the SMID biotech universe, provide a plethora of opportunities for the company to augment the breadth and depth its pipeline in its core therapeutic areas, including neurology, ophthalmology and dermatology, where innovation is rife and where consolidation of some of the smaller players in the space is likely, in our view. Stocks in our SMID coverage universe that could potentially constitute future acquisition targets for�Allergan include Aclaris Therapeutics (ACRS) and Dermira (DERM) (both have mid- to late-stage dermatology assets in development). We note with interest the collaboration with Heptares announced yesterday evening for the development of several M1, M4 and dual M1/M4 agonists in development for a variety of neurological diseases, including Alzheimer��s disease. Notwithstanding this above, larger scale transactions of course cannot be ruled out, and we note today��s market commentary (Fox Business) regarding the potential sale of Valeant Pharmaceuticals International’s (VRX) Bausch & Lomb unit. It is reasonable to assume that�Allergan could be a bidder for this asset, given the company��s presence in ophthalmology, as well as CEO Brent Saunders�� familiarity with the asset (he was the CEO prior to its sale to�Valeant in 2013 for $8.7bn). At the time of its sale to Valeant, B&L was generating c.$3bn in revenues and growing at a double-digit rate. Current sales of the asset are unclear due to the reporting structure of Valeant, as well as concerns regarding the company��s operating/ pricing strategy.
Hot Trucking Stocks To Own Right Now: Barclays PLC(BCS)
Advisors' Opinion:- [By Javier Hasse]
Also popular in July were dividend-paying companies likeWells Fargo & Co (NYSE: WFC), Barclays PLC (ADR) (NYSE:BCS), Bank of America and Ford Motor Company (NYSE: F).
- [By Shauna O'Brien]
Nomura Securities reported that it has upgraded financial services company Barclays PLC (BCS) to “Buy.”
The firm has lifted its rating on BCS two notches from “Reduce” to “Buy.” Normura has also raised its price target from 260p to 340p.
Analyst Chintan Joshi commented: “With growth in the developed world likely to continue well into the start of next year, stocks geared to capital markets should see macroeconomic support. Structural issues are an industry feature and Barclays could still come out better relative to peers compared with its current position. We expect 2015 ROTE of c12% and believe Barclays should be valued at a 2014E P/TB of 1x as we look for 1Q14 momentum. We set our ex-rights target price at 340p (cum rights it would be 380p), which puts the stock at a 2015E P/E of 6.4x, which is hardly demanding. Barclays is now our top pick among its IB and UK peers and a preferred way to gain exposure to the current risk rally. We upgrade our rating on Barclays to Buy from Reduce. We believe investors waiting for the infamous J curve may find that it is fairly muted for Barclays on the downside.”
Barclays shares were up 27 cents, or 1.40%, during pre-market trading Monday. The stock is up 11% YTD.
- [By Maureen Farrell]
Shortly after Lehman declared bankruptcy, Barclays (BCS) paid $1.3 billion for most of the firm's North American operations, its Times Square headquarters, and about 9,000 employees. Nomura Holdings (NMR) paid roughly $200 million for Lehman's operations in Asia.
Hot Trucking Stocks To Own Right Now: Cracker Barrel Old Country Store Inc.(CBRL)
Advisors' Opinion:- [By Monica Gerson]
Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) is projected to report its quarterly earnings at $1.80 per share on revenue of $705.65 million.
- [By Monica Gerson]
Analysts are expecting Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) to have earned $1.80 per share on revenue of $705.65 million in the latest quarter. Cracker Barrel shares gained 0.67 percent to $152.50 in after-hours trading.
- [By Shauna O'Brien]
Cracker Barrel Old Country Store, Inc. (CBRL) shares dropped over 4% on Wednesday morning after the company reported lower fourth quarter earnings and a weak outlook for its first quarter.
The Lebanon, TN-based company reported fourth quarter earnings of $34.3 million, or $1.43 per share, down slightly from $34.7 million, or $1.47 per share, a year ago. On average, analysts expected to see earnings of $1.35 per share.
Total revenue fell to $646.1 million from $700.01 million last year. Analysts expected to see revenue of $668.68 million.
Cracker Barrel President and CEO Sandra Cochran commented: “The fourth quarter of fiscal 2013 represents the seventh consecutive quarter of year-over-year improvement in comparable store traffic, restaurant sales, and retail sales. The financial results of the fourth quarter and full year reflect the effective execution of our strategic plan. As we begin our 2014 fiscal year, we are poised to capitalize on the achievements of fiscal 2013.”
For FY2013, CBRL’s earnings rose 14% to $117.27 million, while EPS rose to $4.90 per share. On an adjusted basis, earnings were $4.97 per share, up 15% from the year prior. Total revenue for the year was $2.64 billion, up 3% from a year ago.
Looking forward, the company expects to see first quarter earnings between $1.05 and $1.15 per share. This estimate would fall significantly below the average analyst estimate of $1.32 per share.
For FY2014, the company expects EPS in the range of $5.60 to $5.80 and revenue between $2.7 billion and $2.75 billion. Analysts expect to see earnings of $5.69 per share and $2.74 billion in revenue.
Cracker Barrel shares were down $4.70, or 4.39%, during Wednesday morning trading. The stock is up 59% YTD.
- [By Jake L'Ecuyer]
Cracker Barrel Old Country Store (NASDAQ: CBRL) shares tumbled 2.50 percent to $104.32 after the company reported a 1.1% drop in its fiscal fourth-quarter earnings and issued a downbeat Q1 forecast.
Hot Trucking Stocks To Own Right Now: Dow Treasuries(DV)
Advisors' Opinion:- [By Lisa Levin]
Friday afternoon, the industrial shares gained by 0.09 percent. Meanwhile, top gainers in the sector included The GEO Group Inc (NYSE: GEO), and DeVry Education Group Inc (NYSE: DV).
- [By Lisa Levin]
Shares of DeVry Education Group Inc (NYSE: DV) were down 14 percent to $15.61. DeVry Education named Patrick Unzicker as its Chief Financial Officer. Credit Suisse downgraded DeVry from Outperform to Neutral and lowered the price target from $25.00 to $17.00.
Hot Trucking Stocks To Own Right Now: Hercules Offshore Inc.(HERO)
Advisors' Opinion:- [By Monica Gerson]
Hercules Offshore, Inc. (NASDAQ: HERO) is estimated to post a quarterly loss at $1.79 per share on revenue of $68.65 million.
You On Demand Holdings, Inc. (NASDAQ: YOD) is expected to report its quarterly earnings.
- [By Lisa Levin]
Hercules Offshore, Inc. (NASDAQ: HERO) shares dropped 46 percent to $1.05 as the company reported that it has entered into a restructuring support agreement with lenders.
