Since the recession, there has been a noticeable pricing gap between West Texas Intermediate crude, a lighter grade of oil used as the benchmark for pricing in the U.S., and Brent crude, the European crude benchmark of light sweet crude produced from the North Sea.
Historically, these two oil types have traded almost in tandem with one another. However, the recession and subsequent economic and supply troubles of the U.S. and Europe changed all that.
Source: Energy Information Administration.
Because of decreased production in the U.S. and supply issues in Europe, Brent crude was at one time valued at $28 more per barrel than WTI. Some had actually questioned the importance of WTI in terms of overall global pricing given the strength that Brent had been exhibiting.�
This gap, while troublesome for midstream companies that had developed intricate transmission, pipeline, and storage systems that delivered oil assets to Cushing, Okla., the major oil hub of the U.S., turned out to be a boon for many independent oil companies operating in the oil-rich Bakken shale and Permian basin. It also was also a big help at just the right time for the railroads as commodity shipments like coal have dropped off a cliff because of cheaper alternative energy pricing. With oil companies looking to pump up their profits, they turned to railroad companies to ship their oil past Cushing to Louisiana terminals, where they could receive the higher Brent crude price, pay the rail company for shipping, and still walk away with a higher price than WTI in almost every instance.
Best Rising Companies To Buy For 2015: CMS Energy Corp (CMS)
CMS Energy Corporation (CMS Energy) is an energy company operating primarily in Michigan. CMS Energy is the parent holding company of several subsidiaries, including Consumers Energy Company (Consumers) and CMS Enterprises Company (CMS Enterprises). Consumers is an electric and gas utility, and CMS Enterprises, primarily a domestic independent power producer. Consumers serves individuals and businesses operating in the alternative energy, automotive, chemical, metal, and food products industries, as well as a diversified group of other industries. CMS Enterprises, through its subsidiaries and equity investments, is engaged primarily in independent power production and owns power generation facilities fueled mostly by natural gas and biomass. CMS Energy operates in three business segments: electric utility, gas utility and enterprises, its non-utility operations and investments. EnerBank USA (EnerBank), a wholly owned subsidiary of CMS Energy, which provides unsecured consumer installment loans for financing home improvements.
CONSUMERS ELECTRIC UTILITY
Consumers��electric utility operations include the generation, purchase, distribution, and sale of electricity. During the year ended December 31, 2011, Consumers��electric deliveries were 38 billion kilowatt hour, which included Retail Open Access (ROA) deliveries of four billion kilowatt hour. Consumers��distribution system includes 413 miles of high-voltage distribution radial lines operating at 120 kilovolts or above; ,244 miles of high-voltage distribution overhead lines operating at 23 kilovolts and 46 kilovolts; 17 miles of high-voltage distribution underground lines operating at 23 kilovolts and 46 kilovolts; 55,953 miles of electric distribution overhead lines; 10,112 miles of underground distribution lines, and substations with an aggregate transformer capacity of 24 million thousand volt-amperes.
At December 31, 2011, Consumers��electric generating system consisted of coal generation, oil/gas/st! eam generation, hydroelectric and gas/oil combustion turbine. At December 31, 2011, Consumers had contracts to purchase coal through 2014. At December 31, 2011, Consumers had 86% of its 2012 expected coal requirements under contract, as well as a 41-day supply of coal on hand. During 2011, Consumers purchased 53% of the electricity it provided to customers through long-term power purchase agreements (PPAs), seasonal purchases, and the Midwest Energy Market. Consumers offers its generation into the Midwest Energy Market on a day-ahead and real-time basis and bids for power in the market to serve the demand of its customers. Consumers is a net purchaser of power and supplements its generation capability with purchases from the Midwest Energy Market to meet its customers��needs during peak demand periods.
CONSUMERS GAS UTILITY
Consumers��gas utility operations include the purchase, transmission, storage, distribution, and sale of natural gas. Consumers��gas utility customer base consists of a mix of residential, commercial, and diversified industrial customers in Michigan�� Lower Peninsula. In 2011, deliveries of natural gas, including off-system transportation deliveries, through Consumers��pipeline and distribution network, totaled 337 billion cubic feet of gas, which included Gas Customer Choice (GCC) deliveries of 48 billion cubic feet of gas. Consumers��gas utility operations are seasonal. During 2011, 46% of the natural gas supplied to all customers during the winter months was supplied from storage.
Consumers��gas distribution and transmission system located in Michigan�� Lower Peninsula consists of 26,623 miles of distribution mains; 666 miles of transmission lines; seven compressor stations with a total of 150,635 installed and available horsepower, and 15 gas storage fields with an aggregate storage capacity of 307 billion cubic feet of gas and a working storage capacity of 142 billion cubic feet of gas. In 2011, Consumers purchased 70% of ! the gas i! t delivered from United States producers and 10% from Canadian producers. The remaining 20% was purchased from authorized GCC suppliers and delivered by Consumers to customers in the GCC program.
ENTERPRISES SEGMENT
CMS Energy�� enterprises segment, through various subsidiaries and certain equity investments, is engaged primarily in domestic independent power production and the marketing of independent power production. At December 31, 2011, CMS Energy had ownership interests in independent power plants totaling 1,135 gross megawatts or 1,034 net megawatts. CMS Energy Resource Management (ERM) purchases and sells energy commodities in support of CMS Energy�� generating facilities and continues to focus on optimizing CMS Energy�� independent power production portfolio. In 2011, CMS ERM marketed 17 billion cubic feet of natural gas and 2,417 gigawatt-hour of electricity.
Advisors' Opinion:- [By ovenerio]
The company has a current ROE of 11.16% which is higher than the industry median. Also, it is higher than the one exhibit by Ameren (AEE). In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment. So, for investors looking at those levels, Wisconsin Energy (WEC) and CMS Energy (CMS) could be the options. It is very important to understand this metric before investing, and it is important to look at the trend in ROE over time.
- [By David Dittman]
CMS Energy Corp (NYSE: CMS), which at 47.5 percent had the largest share of coal-fired generation among power producers in the UF Portfolio, was down just 0.1 percent.
Best Shipping Companies To Own For 2014: Abercrombie & Fitch Company(ANF)
Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. The company sells casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories under the Abercrombie & Fitch, abercrombie kids, and Hollister brands. It also offers bras, underwear, sleepwear, and at-home products for girls under the Gilly Hicks brand. The company sells products through its stores; direct-to-consumer operations; and Websites, which comprise abercrombie.com, abercrombiekids.com, hollisterco.com, and gillyhicks.com. As of October 29, 2011, it operated a total of 1,092 stores, including 316 Abercrombie & Fitch stores, 179 abercrombie kids stores, 501 Hollister Co. stores, and 18 Gilly Hicks stores in the United States; and 10 Abercrombie & Fitch stores, 4 abercrombie kids stores, 63 Hollister Co. stores, and 1 Gill y Hicks store internationally. The company was founded in 1892 and is headquartered in New Albany, Ohio.
Advisors' Opinion:- [By Ben Levisohn]
This post is about Abercrombie & Fitch (ANF) but first, a true story: In college, I tried to date a woman, but let’s just say she wasn’t interested. At least that is, until summer break rolled around, I cut my hair (it had been down my back, making me look like Dave Grohl from Nirvana if you’re feeling charitable,�Chewbacca if you’re not), and came back to school a new man. Nothing had really changed, but she was finally interested.
Bloomberg NewsWhy do I bring this up? Because of Abercrombie & Fitch, which, until yesterday, wasn’t feeling much love. Its shares had dropped 28% during the past 12 months, while just a third of analysts rated it a buy. Activist investors were calling for the head of CEO Mike Jeffries.
How much perceptions change in a day. Last night after the close, Abercrombie & Fitch said that same-store sales fell less than forecast, while the teen retailer boosted its full-year guidance to a range of $1.55 to $1.65 a share, up from $1.40 to $1.50. Shares, needless to say, popped.
Shares of Abercrombie & Fitch have gained 11% to $36.78 today, even as Aeropostale (ARO) has dropped 5.2% to $8.50, and Zumiez (ZUMZ) has fallen 5.6% to $22.85. Wet Seal (WTSL), meanwhile, has gained 0.8% to $2.60 and�American Eagle Outfitters (AEO) has advanced 0.9% to %15.46.
The question now: Has Abercrombie really turned it around? Stifel’s Richard Jaffe and team aren’t so sure. They write:
Management is playing good defense: significantly trimming a bloated expense structure, closing underperforming stores, focusing growth on accretive channels (international and e-commerce) and increasing speed to market. However we believe management remains focused on its ��learly defined aesthetic��of an aspirational, New England prep-inspired teenager which we believe is no longer relevant today. Additionally, management is reducing SKU counts and increasing depth of mercha
- [By Ben Eisen]
Shares of Abercrombie & Fitch Co. (ANF) � slipped 2.1% Thursday after Bank of America Merrill Lynch analysts reportedly downgraded the retailer�� stock to underperform from buy.
Best Shipping Companies To Own For 2014: Chemung Financial Corp (CHMG)
Chemung Financial Corporation, incorporated on January 2, 1985, is a financial holding company. The Company was organized for the purpose of acquiring Chemung Canal Trust Company (the Bank). The Company provides a range of financial services, such as insurance products, mutual funds, and brokerage services. The subsidiaries of the Company include Chemung Canal trust Company and CFS Group, Inc. CFS Group, Inc. offers a range of financial services including mutual funds, full and discount brokerage services, annuity and other insurance products and tax preparation services. Chemung Canal Trust Company is a full-service community bank with full trust powers. The Company manages its operations through two primary business segments: core banking and wealth management group services. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Company�� local markets and to invest in securities. The wealth management group services segment provides revenues by providing trust and investment advisory services to clients.
The Bank is a New York chartered commercial bank, which engages in full-service commercial and consumer banking and trust business. The Bank's services include accepting time, demand and savings deposits, including negotiable order of withdrawal (NOW) accounts, savings accounts, insured money market accounts, investment certificates, fixed-rate certificates of deposit and club accounts. The Bank's services also include making secured and unsecured commercial and consumer loans, financing commercial transactions (either directly or participating with regional industrial development and community lending corporations), and making commercial, residential and home equity mortgage loans, revolving credit loans with overdraft checking protection and small business loans. Additional services include renting safe deposit faciliti! es and the provision of networked automated teller facilities and an Internet banking product featuring bill payment services. Wealth management services provided by the Bank include services as executor and trustee under wills and agreements, and guardian, custodian, trustee and agent for pension, profit-sharing and other employee benefit trusts, as well as various investment, pension, estate planning and employee benefit administrative services.
Lending Activities
At December 31, 2011, 22.5% of the Corporation�� loans consist of commercial real estate loans to borrowers in the real estate, rental or leasing sector. The major portion of this sector comprises borrowers that rent, lease or otherwise allow the use of their own assets by others. The Bank�� loan portfolio includes commercial, financial and agricultural loans, commercial mortgages, residential mortgages, indirect consumer loans, and consumer loans. As of December 31, 2011, the total loan portfolio of the Bank was at $796,915,000.
Investment Activities
The Bank�� investment portfolio consists of obligations of the United States Government and the United States Government sponsored entities; mortgage-backed securities, residential; obligations of states and political subdivisions; corporate bonds and notes; SBA (small business administration ) loan pools; trust preferred securities, and corporate stocks. As of December 31, 2011, the investment portfolio of the Bank was at $289,182,000.
Sources of Funds
The Bank�� source of funds includes non-interest-bearing demand deposits, interest-bearing demand deposits, savings and insured money market deposits, and time deposits. As at December 31, 2011, the total deposits of the Bank was at $965,183,000.
Advisors' Opinion:- [By Doug Hughes]
Steve Halpern: Okay, today we��e going to walk through two specific investment ideas that you find attractive in the banking sector. The first is Chemung Financial (CHMG), a New York-based operation that happens to be one of the oldest banks in the country. Could you tell us a little more about that?
Best Shipping Companies To Own For 2014: Advanced Cell Technology, Inc.(ACTC)
Advanced Cell Technology, Inc., a biotechnology company, focuses on the development and commercialization of human embryonic and adult stem cell technology in the field of regenerative medicine. Its embryonic stem cell research programs include cellular reprogramming, reduced complexity program, and stem cell differentiation research programs. The company?s cellular reprogramming involves in the development of therapies based on the use of genetically identical pluripotent stem cells generated by its cellular reprogramming technologies. Advanced Cell Technology, Inc. also generates stable cell lines with particular focus on blood lineage and vascular epithelial cell lines from hemangioblast cells. In addition, it is developing an autologous myoblast transplantation therapy to restore cardiac function in patients with advanced heart disease. The company?s stem cell-based therapy would provide treatment for a range of acute and chronic degenerative diseases. Further, it deve lops adult stem cell-based products that are specifically targeted at therapies for heart and other cardiovascular diseases. The company is headquartered in Marlborough, Massachusetts.
Advisors' Opinion:- [By CRWE]
Today, ACTC has shed (-1.05%) down -0.0008 at $.0751 with 2,338,132 shares in play thus far (ref. google finance Delayed: 11:55AM EDT July 22, 2013), but don�� let this get you down.
Advanced Cell Technology, Inc. previously reported the Data and Safety Monitoring Board (DSMB), an independent group of medical experts closely monitoring the company�� three ongoing clinical trials, has authorized the company to move forward with enrollment and treatment of remaining two patients in the third cohort of each of the three clinical trials. The decision follows an interim review by the DSMB six weeks after the first patient was treated in the third cohort of each trial. ACT will proceed with screening and enrollment for the patients who, in keeping with trial protocol, will be injected with 150,000 retinal pigment epithelial (RPE) cells derived from human embryonic stem cells (hESCs).
Best Shipping Companies To Own For 2014: Teucrium Wheat Fund (WEAT)
Teucrium Wheat Fund (the Fund) is a commodity pool. The Fund is a series of the Teucrium Commodity Trust (Trust). The Fund provides investors unleveraged direct exposure to wheat without the need for a futures account. The investment objective of the Fund is to have the daily changes in percentage terms of a weighted average of the closing settlement prices for three futures contracts for wheat (Wheat Futures Contracts) that are traded on the Chicago Board of Trade (CBOT), which includes the second-to-expire CBOT Wheat Futures Contract, weighted 35%; the third-to-expire CBOT Wheat Futures Contract, weighted 30%, and the CBOT Wheat Futures Contract, weighted 35%. The Fund is managed by Teucrium Trading, LLC. Advisors' Opinion:- [By Paul Ausick]
The Teucrium Wheat Fund (NYSEMKT: WEAT) closed down 2.43% on Friday to finish the week at $16.47. For the week the fund was up 0.8%. The 52-week range is $13.31 to $19.50. Like corn, the price is up more than 12% since the beginning of the year and down 10.5% over the past 12 months. This fund trades averages just 41,000 shares traded in a day, but nearly tripled that on Friday, when wheat prices fell more than 2% on the CBOT to close at $6.955 a bushel.
Best Shipping Companies To Own For 2014: American Woodmark Corp (AMWD)
American Woodmark Corporation, incorporated on April 21, 1980, manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company offers framed stock cabinets in approximately 550 different cabinet lines, ranging in price from relatively inexpensive to medium-priced styles. Styles vary by design and color from natural wood finishes to low-pressure laminate surfaces. The product offering of stock cabinets includes 86 door designs in 18 colors. Stock cabinets consist of a common box with standard interior components and a maple, oak, cherry, or hickory front frame, door and/or drawer front. The Company�� product is primarily sold under the brand names of American Woodmark, Timberlake, Shenandoah Cabinetry, Potomac, and Waypoint Living Spaces.
The Company�� product is sold on a national basis across the United States to the remodeling and new home construction markets. The Company services these markets through three primary channels, which include home centers, builders, and independent dealers and distributors. The Company provides complete installation services to its direct builder customers through its network of nine service centers that are strategically located throughout the United States. The Company distributes its products to each market channel directly from four assembly plants through a third party logistics network. The primary raw materials used include hard maple, oak, cherry, soft maple, and hickory lumber and plywood.
Advisors' Opinion:- [By John Udovich]
After the bedroom, the kitchen is probably the place where we spend the most time awake in our homes with small cap kitchen stocks Caesarstone Sdot-Yam Ltd (NASDAQ: CSTE) and American Woodmark Corporation (NASDAQ: AMWD) along with diversified midcap Fortune Brands Home & Security Inc (NYSE: FBHS) all putting in a good performance. After all, any sort of housing recovery with more new homes being sold will�help kitchen stocks and so will increased sales of older or foreclosed homes that need to have their kitchens remodeled. But which is the better kitchen stock for investors? Here is�closer look at all three:
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