Offshore drillers like Transocean (RIG), Seadrill (SDRL) and Noble (NE) have gotten pounded this year. Is it time to buy? Well, if not that, at least its time to become less bearish, say the folks at BMO Capital Markets, who upgraded the shares of Transocean, Seadrill, Diamond Offshore (DO), Ensco (ESV), Noble, Rowan (RDC) and Atwood Oceanics (ATW).
BloombergBMO Capital Markets’ Alan Laws and Peyton Mason explain why they see better times ahead of offshore-drilling stocks:
We are upgrading the offshore drillers to Market Perform from Underperform given what we view as a better risk/reward balance over next 6 to 12 months. We believe the stocks largely discount the weakness seen/expected in the industry in 2014/2015 with consensus estimates now reflecting the anticipated level of day rate reductions. Recent fixtures, while likely negotiated in 2013, suggest activity is resuming (albeit slowly), and we expect this to increase as ��learing house��rates are reached for producer cost containment. In other words, the potential for a surprise demand uptick now outweighs already price- in risks of further weakening, in our view. In our view, the largest risk to our upgrade today is being a bit early given what could be a longer drawn-out return to activity. That said we want to be positioned for the technical inflection like the land rigs in fall 2012. Stock downside appears limited with an already negative bias in expectations and ultimately investor fatigue with the thesis. Fundamental valuation metrics (PE and P/BV) also suggest trough levels. We think differentiation (vs. being viewed as one group) is likely to become more pronounced in a bounce, and we prefer ATW and ESV over peers. While other subsectors in Oil Services remain more attractive today, we believe value and contrarian investors should start kicking tires.
10 Best Consumer Stocks To Invest In 2016: Unifi Inc (UFI)
Unifi, Inc., sells fibers made from polyester and nylon filament to other yarn manufacturers, knitters and weavers that produce fabric for the apparel, hosiery, sock, home furnishing, automotive upholstery, industrial and other markets. The Company's polyester yarn products include polyester polymer beads (Chip), partially oriented yarn (POY), textured, solution and package dyed, twisted and beamed yarns. The Company's nylon products include textured, solution dyed and covered spandex products. The Company operates in three segments: Polyester segment, Nylon segment and International segment. In December 2013, Unifi Inc acquired American Drawtech Co Inc.
The Polyester segment manufactures Chip, POY, textured, dyed, twisted and beamed yarns, virgin and recycled, with sales primarily to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive upholstery, home furnishing, industrial and other end-use markets. The Polyester segment consists of manufacturing operations in the United States and El Salvador. The Nylon segment manufactures textured nylon and covered spandex yarns with sales to knitters and weavers that produce fabric for the apparel, hosiery, sock and other end-use markets. The Nylon segment consists of manufacturing operations in the United States and Colombia. The International segment's products primarily include textured polyester and range of resale yarns. The International segment sells its yarns to knitters and weavers that produce fabric for the apparel, automotive upholstery, home furnishing, industrial and other end-use markets primarily in the South American and Asian regions.
The Company manufactures polyester related products in the United States, El Salvador and Brazil and nylon yarns in the United States and Colombia for a range of end-uses. The Company processes and sells POY, as well as high-volume commodity, specialty, and PVA yarns, domestically and internationally, with PVA yarns making up! approximately 18% consolidated sales for the fiscal year ended June 24, 2012.
The Company competes with O'Mara, Inc., NanYa Plastics Corp., AKRA, S.A. de C.V., C S Central America S.A. de C.V., Avanti Industria Comercio Importacao e Exportacao Ltda., Polyenka Ltda., Sapona Manufacturing Company, Inc., McMichael Mills, Inc. and Worldtex, Inc.
Advisors' Opinion:- [By Javier Hasse, Insider Monkey]
Once again, MedAssets trades below its industry average valuation of 62.1 x P/E, at 49.3x. Its valuation becomes even more attractive when one looks at the company麓s P/B ratio (2.8x vs. an industry average of 15.6x) and P/S ratio (2.0x vs. 4.7x). However, below average margins, returns and growth projections are three major sources of concern.
Unifi (UFI)Finally, there’s Unifi (UFI), a $421 million market cap diversified producer and processor of multi-filament polyester and nylon yarns.
Top 10 Oil Service Companies To Watch In Right Now: Indonesia Transport & Infrastructure Tbk PT (IATA)
PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors' Opinion:- [By Shereen El Gazzar]
The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.
Top 10 Oil Service Companies To Watch In Right Now: EnteroMedics Inc.(ETRM)
EnteroMedics Inc., a clinical development stage medical device company, focuses on the design and development of devices that use neuroblocking technology to treat obesity and associated co-morbidities, and other gastrointestinal disorders. The company?s proprietary neuroblocking technology is designed to intermittently block the vagus nerve using electrical impulses. Its product under development is the Maestro System, which is used to limit the expansion of the stomach, control hunger sensations between meals, reduce the frequency and intensity of stomach contractions, and produce a feeling of early and prolonged fullness. The company intends to market its products to potential referral source clinicians, including general practitioners, internists, endocrinologists, and nurses. It has collaboration agreement with Mayo Clinic and Australian Institute of Weight Control. The company was formerly known as Beta Medical, Inc. and changed its name to EnteroMedics Inc. in 2003 . EnteroMedics Inc. was founded in 2002 and is headquartered in St. Paul, Minnesota.
Advisors' Opinion:- [By Jon C. Ogg]
EnteroMedics Inc. (NASDAQ: ETRM) may be a largely unknown microcap stock to most investors. The company is in the development stages of making medical devices using neuroblocking technology to treat obesity, metabolic diseases and other gastrointestinal disorders. A new research report has shares rising handily.
Top 10 Oil Service Companies To Watch In Right Now: Denny's Corporation(DENN)
Denny's Corporation, through its subsidiaries, engages in the ownership and operation of a chain of family-style restaurants. The company operates traditional American-style food restaurants under the Denny?s brand name. As of December 28, 2011, it had 1,479 franchised/licensed restaurants and 206 company-owned and operated restaurants in the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Puerto Rico, and New Zealand. The company was founded in 1980 and is headquartered in Spartanburg, South Carolina.
Advisors' Opinion:- [By Peter Graham]
The Q4 2014 earnings report for restaurant stock Bob Evans Farms Inc (NASDAQ: BOBE), a potential peer of Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL), Denny's Corporation (NASDAQ: DENN) and DineEquity Inc (NYSE: DIN), is scheduled for after the market closes on Tuesday. Aside from the Bob Evans Farms report, it should be said that Cracker Barrel Old Country Store, Inc reported Q3 2014 earnings on May 28th (revenues and profit�rose on�lower expenses); Denny's Corporation reported Q1 2014 earnings on April 28th (they had their strongest quarter of same-store sales at company restaurants in over seven years); and DineEquity Inc reported Q1 2014 on May 1st (earnings rose on stronger sales). However, Bob Evans Farms�recently replaced�three board members with new independent directors after�facing criticism from shareholder Sandell Asset Management Corp.
- [By Alanna Petroff]
After the close, we'll hear from Twitter (TWTR, Tech30), Buffalo Wild Wings (BWLD), Crocs (CROX) and Denny's (DENN).
4. Economics: At 10 a.m. ET, the government will release data on September pending home sales.
Top 10 Oil Service Companies To Watch In Right Now: Plum Creek Timber Company Inc.(PCL)
Plum Creek Timber Company, Inc. is a publicly owned real estate investment trust (REIT). The trust owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips. The trust also focuses on mineral extraction and natural gas production, communication, and transportation. Plum Creek Timber Company was founded in 1989 and is based in Seattle, Washington.
Advisors' Opinion:- [By Ben Levisohn]
Shares of Rayonier have plunged 15% to $46.97 at 12.36 p.m., but its fall doesn’t seem to have damaged other timber companies. Weyerhaeuser (WY) has gained 3.7% to $31.43 after it reported a profit of 27 cents today, beating estimates of 21 cents. Plum Creek Timber (PCL) is little changed at $49.47 and Boise Cascade (BCC) has risen 1.1% to $27.83.
Top 10 Oil Service Companies To Watch In Right Now: Beamz Interactive Inc (BZIC)
Beamz Interactive, Inc., incorporated on May 25, 2001, develops an interactive laser controller technology that can be used in a range of music, game, therapy, education, senior care, lighting and consumer applications. The Company�� commercial products include Beamz Player and Beamz Pro. By connecting the Beamz Player to a personal computer (PC) and installing the included software, the user can play a range of digitized musical instruments by simply interrupting one or more laser beams with their hands, thereby creating great music in conjunction with a background rhythm track of original, popular, disc jockey (DJ) and children�� songs across numerous music genres (including Jazz, Blues, Hip Hop, Rock, Classical, Latin). In each song the user can select up to 12 different instruments, music clips and sound effects that are paired with a background rhythm track, amounting to hundreds of instruments to choose from across all songs in the Beamz music library.
BeamzPlayer software makes it easy to make great sounding music in minutes by following the diagram of the Beamz Player on the screen of the attached computer, which allows the user to identify which laser beam controls different instruments. Beamz songs are set up to be regardless of how they are played and the music samples assigned to a laser beam offer more complexity, often with several notes, chords and/or series of music samples controlled by touching one of the laser beams. The Company has commercialized several products that use the Beamz interactive laser controller technology for music making and music-controller related products. These products are interactive music systems that combine laser controller hardware and various versions of interactive music software, including mapping software applications that enable the Beamz laser controller hardware to be used with software applications offered by other companies relating to mixing/DJ, lighting controls and music creation/production applications.
The Com! pany�� hardware product offering consists of three product lines: the Beamz Player consumer product family, the Beamz DJ and Beamz Pro product family, and the Beamz Education, Special Needs, and Physical Rehabilitation product family (Beamz Products). The Beamz Player and Beamz Pro hardware may also be used as a general laser controller for many other purposes, such as lighting, games, music production, and other applications.
Advisors' Opinion:- [By Peter Graham]
Small cap tech or media stocks Thinspace Technology Inc (OTCMKTS: THNS), Beamz Interactive Inc (OTCBB: BZIC) and Hannover House Inc (OTCMKTS: HHSE) have been getting some extra attention lately, but it appears that only one of these stocks has been the subject of a paid promotion. Nevertheless, all three stocks have been busy with press releases trying to get the attention of investors or traders. So are these three small cap tech or media stocks worth your attention? Here is a closer look along with a reality check:
- [By Peter Graham]
Small cap stocks Beamz Interactive Inc (OTCBB: BZIC), EHouse Global (OTCBB: EHOS) and Winning Brands Corporation (OTCMKTS: WNBD) were all heading in different directions at the end of last week with the first small cap surging 49.94% while the other two sank 31.28% and 25.32%, respectively, on Friday. Moreover, all three small cap stocks are already heading in different directions again this morning. So where should investors and traders place their bets? Here is a closer look at all three small cap stocks:
Top 10 Oil Service Companies To Watch In Right Now: Imperial Oil Limited(IMO)
Imperial Oil Limited engages in the exploration, production, and sale of crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment engages in the exploration and production of conventional crude oil, natural gas, synthetic oil, and bitumen primarily in the Western Provinces, the Canada Lands, and the Atlantic Offshore. Its primary conventional oil producing asset includes the Norman Wells oil field in the Northwest Territories. The Downstream segment engages in the transportation and refining of crude oil, as well as blending, distribution, and marketing of refined products. It owns and operates crude oil, and natural gas liquids and products pipelines in Alberta, Manitoba, and Ontario. The Chemical segment engages in the manufacture and marketing of various petrochemicals, including ethylene, benzene, aromatic and aliphatic solvents, plasticizer intermediates, and polyethylene resin. As of De cember 31, 2010, Imperial Oil Limited had 1,204 million oil-equivalent barrels of proved undeveloped reserves; maintained a nation-wide distribution system, including 24 primary terminals, to handle bulk and packaged petroleum products moving from refineries to market by pipeline, tanker, rail, and road transport; and sold petroleum products through 1,850 Esso retail service stations, of which approximately 510 were company owned or leased. The company was founded in 1880 and is headquartered in Calgary, Canada. Imperial Oil Limited operates as a subsidiary of Exxon Mobil Corporation.
Advisors' Opinion:- [By Ben Levisohn]
We downgrade ExxonMobil to Underweight from Equal Weight primarily due to its relative valuation. The shares are currently trading at a 9% premium to its NAV compared to the group average discount of 17%. Although we have modestly increased our price target to $105 from $100 and set it above its NAV estimate to give credit to the company�� seemingly conservative non-proved resource estimate, we believe the potential upside is limited compared to other names in our coverage. We think the stock will continue to face relative headwinds concerning the lack of meaningful near-term production growth and our belief of a relatively steady high oil price environment. We recommend switching from ExxonMobil to ConocoPhillips, Imperial Oil (IMO), or Suncor. That said, ExxonMobil will likely outperform the group in the event of any unexpected significant negative macro developments given its long held ��afe haven��status.
- [By Arjun Sreekumar]
Cost overruns and abandoned projects
As a result of these factors, cost overruns have become quite common in Alberta. For instance, Imperial Oil (NYSEMKT: IMO ) said it exceeded its cost estimates for the first phase of its Kearl bitumen mining facility by about C$2 billion.�And some companies have even decided to abandon expensive projects altogether.
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