Supermarket giants Albertsons and Safeway (SWY) made news last week by agreeing to merge, creating a combined company that will fall just shy of Kroger (KR) in terms of store count. Cerberus Capital, the private equity firm that owns Albertsons, has offered to pay $40 per share for Safeway.
But naturally, whenever a large merger like this is announced, it raises questions.
I have two particular questions at the front of my mind: Will there be more industry consolidation to come? And more importantly, who are the winners and losers?
A Brutal IndustryThe biggest winners in the Albertsons-Safeway merger are, of course, the Safeway shareholders. Belief that a buyout was imminent was a major factor in Safeway�� share price rising about 20% year-to-date.
Given the size of the remaining players, large consolidation is unlikely, though given the competitive dynamics of the business, it would be welcome.
Top 10 High Dividend Stocks For 2015: Amkor Technology Inc.(AMKR)
Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. It offers package formats and services using wirebonding and flip chip interconnect technologies that connect the die to the package carrier. The company?s package carriers include leadframe packages that utilize metal and place the electrical interconnect leads to the system board around the perimeter of the package; substrate packages, which utilize a laminate as the package carrier; and wafer-level packages. It provides chip scale packages comprising stacked chip scale packages for chipsets and memory applications; package-on-package solutions for the integration of logic and memory in a single footprint; and system-in-package modules that integrate two or more chips and passive device elements into a single package. The company also offers ball grid array packages comprising flip chip ball grid array packages that are used with silicon nodes f or small devices and other applications; and plastic ball grid array packages, which use wirebond technology. In addition, it provides other packaging services, such as wafer bumping services. Further, the company offers semiconductor testing services, including wafer testing or probe, final testing, strip testing, and end-of-line test services; and specialized logistical services, such as security certification and anti-counterfeit measures. It primarily serves the communications, consumer, computing, networking, automotive, and industrial markets. Amkor Technology, Inc. was founded in 1968 and is headquartered in Chandler, Arizona.
Advisors' Opinion:- [By Alex Planes]
What: Shares of Amkor Technology (NASDAQ: AMKR ) are up by over 10% today after beating expectations on both top and bottom lines in its first-quarter earnings report.
- [By Monica Gerson]
Amkor Technology (NASDAQ: AMKR) shares gained 1.63% to touch a new 52-week high of $7.46. Amkor Technology's PEG ratio is 0.94.
Abraxas Petroleum (NASDAQ: AXAS) shares gained 2.94% to reach a new 52-week high of $4.55. Abraxas Petroleum shares have jumped 93.01% over the past 52 weeks, while the S&P 500 index has gained 17.50% in the same period.
- [By Louis Navellier]
Amkor Technologies (AMKR) outsources semiconductor packaging and test services both in the U.S. and around the world. Amkor has 16 facilities with over 5.5 million square feet of space in seven countries right now. Analysts expected the company to have a very weak first quarter, but Amkor exceeded expectations by a wide margin.
Top Supermarket Stocks To Buy Right Now: Cheniere Energy Inc.(LNG)
Cheniere Energy, Inc., through its subsidiaries, engages in the ownership and operation of liquefied natural gas (LNG) receiving terminals and natural gas pipelines in the Gulf Coast of the United States. The company develops LNG receiving terminal projects on Sabine Pass LNG in western Cameron Parish, Louisiana on the Sabine Pass Channel; Corpus Christi LNG near Corpus Christi, Texas; and Creole Trail LNG at the mouth of the Calcasieu Channel in central Cameron Parish, Louisiana. It also involves in the oil and natural gas exploration and development activities; and LNG and natural gas marketing business. The company was founded in 1983 and is based in Houston, Texas.
Advisors' Opinion:- [By Aimee Duffy]
As the debate over liquefied natural gas exports rolls on, many investors have become intrigued at the idea of investing in U.S. LNG. As far as stock market opportunities go, the only company in the States with all the necessary approvals for such exports is�Cheniere Energy� (NYSEMKT: LNG ) . If you haven't been following the company, you may have some questions not only about Cheniere itself, but also about how it fits into the global LNG picture. That's why�we created a�premium report�on the company,�to help guide investors on whether or not Cheniere merits consideration for their portfolios.�
- [By Tyler Crowe]
The two facilities that have non-free trade agreement licenses already, Cheniere Energy's (NYSEMKT: LNG ) Sabine Pass and ConocoPhillips' Freeport LNG, will have a combined export capacity of 3.6 billion cubic feet per day, which is about 5.2% of all U.S. production today. It is very likely that more licenses will be administered. If all applications were granted, though, the U.S. would have capacity to export 41% of total domestic production. The chances of us exporting that much gas are next to nothing, since it would likely have a big influence on domestic prices. This raises the next question.
Top Supermarket Stocks To Buy Right Now: Guggenheim CurrencyShares Japanese Yen Trust (FXY)
Guggenheim CurrencyShares Japanese Yen Trust, formerly CurrencyShares Japanese Yen Trust, is a grantor trust. The Trust issues shares (the Shares) in blocks of 50,000 (a Basket) in exchange for deposits of Japanese Yen and distributes Japanese Yen in connection with the redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the price of Japanese Yen plus accrued interest, if any, less the expenses of the Trust�� operations. The Trust holds Japanese Yen and, from time to time, issues Baskets in exchange for deposits of Japanese Yen and distributes Japanese Yen in connection with redemptions of Baskets. The Sponsor of the Trust is Guggenheim Specialized Products, LLC, a Delaware limited liability company.
The Bank of New York Mellon, a banking corporation with trust powers organized under the laws of the State of New York, serves as the Trustee. The Shares are backed by the assets of the Trust, which does not hold or use derivative products.
Advisors' Opinion:- [By Richard Cox]
In ETFs, this translates to substantially bearish moves in PowerShares DB US Dollar Index Bullish (UUP) and highly bullish moves in theCurrencyShares Japanese Yen Trust (FXY). The BoJ left policy unchanged, with no stated plans to alter the 60 trillion Yen ($611 billion) in annual injections to the country's monetary base. Most analysts were expecting the BoJ would approve loan operations that extend to two years (or longer), and the results put renewed focus on the 10-year Japanese treasury note. Since the BoJ announced its historic stimulus plan in April, the 10-year note has risen from its all-time lows at 0.315% to highs of 1%. The main ideological thrust of the BoJ must be kept in perspective, however, as there is still clear long-term concern for the prospects of the country's export companies and pronounced efforts in place to bring consumer inflation levels back toward normal ranges.
Top Supermarket Stocks To Buy Right Now: United States Cellular Corporation(USM)
United States Cellular Corporation operates as a wireless telecommunications service provider in the United States. The company offers wireless voice and data services to retail consumer and business customers. It provides wireless services in postpaid service plans with voice, messaging, and data services; and prepaid service plans with minutes, messaging, and data services for a monthly fee. The company also offers various additional features, including caller ID blocking, call forwarding, voicemail, call waiting, and three-way calling; and data usage features consisting of Web browsing, email services, instant messaging, text messaging, and picture and video messaging. As of December 31, 2010, it provided wireless voice and data services to 6.1 million customers in 26 states. In addition, the company operates retail stores that sell a range of wireless devices, including handsets, modems, and tablets, as well as accessories, such as carrying cases, hands-free devices, b atteries, battery chargers, memory cards, and other items to consumers and small businesses. Further, it sells wireless devices to agents and other third-party distributors for resale; operates service facilities that provide servicing and repair for wireless devices; and enables customers to activate service and purchase wireless devices online. The company?s business customers include small-to-mid-size businesses in various industries, including construction, retail, professional services, and real estate. It offers its products and services through retail sales and service centers, direct sales, and independent agents. The company was founded in 1983 and is based in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.
Advisors' Opinion:- [By Evan Niu, CFA]
Wireless carrier U.S. Cellular (NYSE: USM ) will get Apple's (NASDAQ: AAPL ) iPhone "later this year," the company has announced.
- [By Jim Probasco]
CNET said it expects to see ZTE focus on premium quality smartphones at the Mobile World Congress at the end of February this year.�This would be a departure from the company�� previous concentration on mid-range priced phones offered by smaller carriers like Cricket Wireless, U.S. Cellular, (NYSE: USM) and Aio Wireless.
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