In a secular bull market rally, sectors tend to go up and down on a favorable basis as they become either overbought or just lose momentum. The Institutional Portfolio team at Oppenheimer highlighted that the communications equipment sector has shown two months of notable improvement. The breadth of�analyst revisions and secularly depressed valuations create a compelling industry-level opportunity for relative outperformance. Most importantly, they point out that valuations are remaining at generational lows. The communications equipment arena looks best positioned to outperform, while limiting downside risks. Here are the top stocks to buy at Oppenheimer in the sector.
ADTRAN Inc. (NASDAQ: ADTN) is a leading global provider of networking and communications equipment. Its products enable voice, data, video and Internet communications across a variety of network infrastructures. ADTRAN solutions are currently in use by service providers, private enterprises, government organizations and millions of individual users worldwide. The Thomson/First Call price target for the stock is $22, and investors receive a 1.4% dividend.
Top 10 Warren Buffett Companies To Buy For 2015: Cellcom Israel Ltd.(CEL)
Cellcom Israel Ltd. provides cellular communications services in Israel. It offers basic and advanced cellular telephone services, text and multimedia messaging services, and advanced cellular content and data services. The company?s basic cellular telephony services include voice mail, cellular fax, call waiting, call forwarding, caller identification, collect call, conference calling, ?Talk 2?, additional number services, and collect call services; and outbound and inbound roaming services. It also provides value-added services comprising Cellcom volume that includes downloadable content, such as music, games, on-net-reality programs, drama series, and video games; SMS and MMS services to send and receive text, photos, multimedia, and animation messages; access to third party application providers for notification of roadway speed detectors, mange vehicle fleets, and enable subscribers to manage and operate time clocks and various controllers for industrial, agricultural , and commercial purposes; video calls to communicate with each other through video applications; zone services for calls initiated from a specific location; location-based services; voice-based information services; text-based information services and interactive information services, including news headlines, sports results, and traffic and weather reports; and data services to access handsets, cellular modems, laptops, tablets, and cellular routers, as well as Internet based payment services. In addition, the company sells handsets, modems, routers, tablets, and laptops, as well as provides repair and replacement services; and offers landline telephony, transmission, and data services through its approximately 1,500 kilometers of inland fiber-optic infrastructure and complementary microwave links to selected business customers. As of March 31, 2011, it provided its services to approximately 3.395 million subscribers. The company was founded in 1994 and is headquartered in Netanya, Israel.
Advisors' Opinion:- [By Rich Smith]
Cellcom Israel (NYSE: CEL ) is getting a new CFO.
Following the company's successful merger with Netvision, current Chief Financial Officer Yaacov Heen is declaring his mission accomplished, and says he intends to resign his post on Sept. 17 after 16 years with the company. At that time, Cellcom says it will bring on Shlomi Fruhling, the former VP for strategy and finance at Netvision, to become the merged company's new CFO on Sept. 18.
Hot Dividend Stocks For 2014: SuperValu Inc.(SVU)
SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. Its stores offer grocery, general merchandise, health and beauty care, pharmacy, and fuel products. The company operates stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher?s, Jewel-Osco, Lucky, Shaw?s, Shop ?n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates approximately 2,394 traditional and hard-discount retail food stores, including 899 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers, as well as provides logistics support services. SUPERVALU was founded in 1871 and is based in Eden Prairie, Minnesota.
Advisors' Opinion:- [By Ben Levisohn]
Down, down, down Supervalu (SVU) goes and where it stops, no one knows. Not even Goldman Sachs, which cut Supervalu’s shares to Sell from Neutral, though it does have a guess.
Goldman Sachs analysts Stephen Grambling and Christopher Prykull explain their thinking:
SVU shares are up 183% year-to-date (vs. S&P 500 +26%) as management�� initiatives have slowed the top-line deterioration at the company�� retail banners and Save-A-Lot. As the market has started to factor in stable-to-improving EBITDA on a highly levered equity base, the stock has re-rated from 4.5X EV/EBITDA to 6.1X EV/EBITDA. With the shares now trading above the historical average and roughly in line with peers, we expect future downward revisions to consensus estimates will likely drive a rerating of the shares to a more normalized level.
While we have been encouraged by the new management team�� success in effecting change, we believe cuts to food stamps (SNAP benefits), potential reductions to the transition service agreement, and encroaching competition will likely overwhelm operational improvements…
Shares of Supervalu have dropped 8.3% to $6.31 at 2:59 p.m., within spitting distance of Goldman’s $6 target price, while competitors Family Dollar Stores (FDO) has gained 0.2% to $70.16,�Dollar General�(DG) has fallen 0.4% t0 $59.02,�Dollar Tree (DLTR) is off 1% to $59.33 and Wal-Mart (WMT) is little changed at $79.19.
- [By Selena Maranjian]
More than a handful of small-cap companies�had strong performances over the past year. SUPERVALU (NYSE: SVU ) surged 200%. The company has suspended its dividend, in order to cut costs and more effectively compete in its low-margin industry, where it also faces growing competition from Wal-Mart�and other discounters. Some rivals such as Whole Foods Market�have been able to maintain higher margins by offering organic produce and higher-end products. SUPERVALU has been reshaping itself and selling off some brands, and apparently many investors are hopeful.
- [By Steve Symington]
What's more, Whole Foods management plans to increase the total number of domestic stores to 1,000, or nearly triple the 345 total locations it currently maintains. If that sounds aggressive, consider that grocery giant Safeway (NYSE: SWY ) currently has more than 1,600 locations, and the behemoth SUPERVALU� (NYSE: SVU ) boasted more than 5,000 stores at the end of last year.�Compared to both Safeway and SUPERVALU, at least, Whole Foods has plenty of room to grow -- and plenty of market share to grab along the way.
Hot Dividend Stocks For 2014: Prospect Capital Corporation(PSEC)
Prospect Capital Corporation is a mezzanine finance and private equity firm that specializes in late venture, middle market, mature, mezzanine, buyouts, recapitalizations, growth capital, development, and bridge transactions. It makes secured debt and equity investments. The firm typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. The firm prefers to invest in the United States and Canada. It seeks to invest between $5 million to $50 million in companies with EBITDA between $$ million and $75 million, sales value up to $500 million, and enterprise value of up to $250 million. The firm also co- invests for larger deals. It seeks control acquisitions by providing multiple levels of the capital structure. Prospect Capital Corporation was founded in 1988 and is based in New York, New York.
Advisors' Opinion:- [By Jordan Wathen]
Is it time for a stock buyback at Prospect Capital� (NASDAQ: PSEC ) ?
When business development companies trade substantially below their last-reported net asset values, or NAV, repurchasing shares can be quite beneficial for shareholders. A repurchase allows a BDC to essentially acquire a portfolio of loans and investments at prices below their stated value.
- [By salamat_uri]
In the current market environment, there are many small and medium sized companies that have trouble gaining the requisite attention or in securing favorable terms in bank lending arrangement. For these reasons, business development companies (BDCs) are not only an essential part of the market but should continue to see sustainable performances in stock valuations, as well. One of the strongest choices in this space is Prospect Capital (PSEC), which has shown tremendous growth over the last three years and continues to build on the strategies that has made it one of the most stable choices in the market.
- [By Grass Hopper]
Examples of the first class of publicly ��raded private equity firms include Kohlberg Kravis Roberts & Co. L.P. (KKR), The Blackstone Group L.P. (BX), and Oaktree Capital Group, LLC (OAK). Examples of the second class are Wendel SA (MF FP), Exor SpA (EXO IM) and, to some extent, Reinet Investments SCA (REI SJ). Examples of the third class are American Capital, Ltd. (ACAS), Main Street Capital, Gladstone Capital Corp. (MAIN), and Prospect Capital Corp. (PSEC).
- [By Charles Sizemore]
A high dividend yield, large-scale buying by company insiders, and recent buying by funds controlled by Joel Greenblatt (Trades, Portfolio) and George Soros (Trades, Portfolio).Sound interesting? Then I suggest you take a look at shares of Prospect Capital Corporation (PSEC), a business development company (��DC�� traded on the Nasdaq.If you��e unfamiliar with BDCs, you can think of them as publically-traded private equity firms. BDCs provide financing to small and middle-market companies that are too early in their development to get funding from more traditional sources, such as the bond and equity markets. It�� a high-risk but potentially very high-return financing niche.Similar to REITs, BDCs pay no taxes at the company level on the condition that they distribute at least 90% of their income to their investors via dividends. This makes BDCs some of the highest-yielding investments on the market, but��s is the case with REITs and MLPs��heir inability to retain earnings for future growth also means that they regularly have to issue new shares, which dilutes current shareholders. That�� notnecessarily a bad thing if new investments are accretive to earnings. But it means that management has to be extremely disciplined.Let�� dig into the details of Prospect Capital. PSEC invests primarily in first-lien and second-lien senior loans and mezzanine debt and provides financing for leveraged buyouts, acquisitions, recapitalizations, and capital expenditures for growth. PSEC also invests in the higher-risk but potentially much higher-return equity tranches of collateralized loan obligations. Most of PSEC�� individual investments would have to be considered risky given the early stages of the companies involved, but the portfolio is diversified across a wide variety of industries.PSEC pays an absolutely massive dividend, sporting a current dividend yield of 13.7%. Now, normally, that would make me pause. An exceptionally high yield is often a major red
Hot Dividend Stocks For 2014: Pepsico Inc.(PEP)
PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe; and PepsiCo Asia, Middle East, and Africa (AMEA). The PAF division offers Lay?s and Ruffles potato chips, Doritos and Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Quaker Chewy granola bars, and SunChips multigrain snacks in North America; Quaker oatmeal, Aunt Jemima mixes and syrups, Cap?n Crunch cereal, Quaker grits, and Life cereal, as well as Rice-A-Roni, Pasta Roni, and Near East side dishes in North America; and various snack foods under Doritos, Marias Gamesa, Cheetos, Ruffles, Emperador, Saladitas, Sabritas, and Lay?s brands in Latin America. The PAB division provides carbonated soft drinks, beverage concentrates, fountain syrups, and finished goods under Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Electropura, Sierra Mist, Epura, and Mirinda brands; ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks; and sells concentrate to authorized bottlers, and branded finished goods directly to independent distributors and retailers. This division also manufactures third-party brands, such as Dr Pepper, Crush, Rock Star, and Muscle Milk. The PepsiCo Europe division offers Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices, and Quaker foods in Europe. The AMEA division provides snack food under the Lay?s, Kurkure, Chipsy, Doritos, Smith?s, Cheetos, Red Rock Deli, and Ruffles brands; Quaker-brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, and Mountain Dew brands. PepsiCo, Inc. was founded in 1898 and is headquartered in Purchase, New York.
Advisors' Opinion:- [By Ingrid Hendershot]
PepsiCo (PEP) yields 2.9% and has raised its dividend for 42 years.
The TJX Cos. (TJX) yields 1.0% and has raised its dividend for 18 years.
- [By Johanna Bennett]
Among the signs that the big bank cases may be winding down: Tony West, who was Mr. Holder�� point-man in the big bank settlement talks, recently left the Justice Department and will join PepsiCo (PEP) as its general counsel.
Hot Dividend Stocks For 2014: Pacific Gas & Electric Co.(PCG)
PG&E Corporation, through its subsidiaries, operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. The company also involves in the generation, procurement, transmission, and distribution of electricity; and procurement, transportation, storage, and distribution of natural gas. It owns and operates electricity generation facilities, transmission and distribution lines, and substations; and an integrated natural gas transportation, storage, and distribution system, as well as has underground natural gas storage fields in California. The company serves residential, commercial, industrial, agricultural, public street and highway lighting, and other electric utility customers. As of December 31, 2009, it served approximately 5.1 million electricity distribution customers and approximately 4.3 million natural gas distribution customers. The company also operated 18,650 circuit miles of intercon nected transmission lines and 141,213 circuit miles of distribution lines for electricity; and 42,142 miles of distribution pipelines, 6,438 miles of backbone and local transmission pipelines, and 3 storage facilities for natural gas. PG&E Corporation was founded in 1905 and is based in San Francisco, California.
Advisors' Opinion:- [By Richard Stavros]
Last August, PG&E Corp (NYSE: PCG), issued a callable 30-year bond (due Aug. 15, 2042) that yielded 3.75 percent at 99 (CUSIP: 694308HA8). But six months later, the bond was trading at a discount of 86.76 and yielding 4.586 percent, according to the last trade recorded by FINRA-Morningstar.
- [By David Dittman]
PG&E Corp (NYSE: PCG), Edison International (NYSE: EIX) and Sempra Energy (NYSE: SRE) are the parent entities of California’s investor-owned utilities.
- [By Richard Stavros]
On April 16, 2013, around 1:30 a.m., snipers opened fire for about 20 minutes on PG&E Corp’s (NYSE: PCG) Silicon Valley transmission substation, causing 17 transformers to overheat and crash.
No comments:
Post a Comment