The window to avoid the first government shutdown in 17 years neared closure late Monday night, with lawmakers unable to reach an agreement.
Earlier in the day, stocks and metals moved in the same downward direction as investors feared a shutdown of the U.S. government after the Senate rejected Republican efforts to tie funding of the government to defunding of the health care law.
At roughly 8:45 p.m. EST Monday, the House voted 228-201 in favor of a third version of a short-term extension of government funding that was linked to a one-year delay in certain aspects of the 2010 Affordable Care Act, a measure that President Obama has threatened to veto. About an hour later, the Senate rejected the most recent plan on a 54-46 vote, sending it back to the House.
As the midnight deadline approached, the U.S. dollar and shares in Asian equity markets remained steady in overseas markets, despite concerns that a shutdown would mean that some 800,000 workers would be out of a job temporarily, threating the nation's economic growth.
Top Net Payout Yield Stocks To Watch Right Now: Zalicus Inc.(ZLCS)
Zalicus Inc., a biopharmaceutical company, engages in the discovery and development of drug candidates focusing on the treatment of pain and inflammation. The company?s clinical and preclinical product candidates for pain and inflammatory diseases include Synavive, a glucocorticoid product candidate, which is in Phase 2b clinical development for the treatment of rheumatoid arthritis; Z160, an N-type calcium channel blocker for chronic pain; Z944, a T-type calcium channel blocker to treat acute or chronic inflammatory pain; and N-type and T-type calcium and sodium channel blockers for the treatment of chronic pain. It has a research collaboration and license agreement with the Novartis Institutes of Biomedical Research; collaboration agreement with Mallinckrodt Inc., Fovea Pharmaceuticals SA, and Amgen Inc; and a cooperative research and development agreement with the United States Army Medical Research Institute for Infectious Diseases. The company was formerly known as C ombinatoRx, Incorporated and changed its name to Zalicus Inc. in September 2010. Zalicus Inc. was founded in 2000 and is based in Cambridge, Massachusetts.
Advisors' Opinion:- [By Bryan Murphy]
It's fun to be right, especially when it comes to picking stocks. Sometimes though, you can be a little too right, too fast, forcing a change in the game plan. Well, the good news/bad news is, I was too right, too fast with Zalicus Inc. (NASDAQ:ZLCS). Back on August 30th I pegged ZLCS as a buy-worthy trade, when it was trading at $0.71. It hit a peak of $0.93. That's a move of 31% in just two trading days. Though the gain has since been whittled down to 'only' 17% thanks to the retreat to the current price of $0.834, shares are still overbought, and I still have to advocate selling your short-term trade on the position.
- [By Paul Ausick]
Stocks on the Move: ViroPharma Inc. (NASDAQ: VPHM) is up 25.4% at $49.38 on a $4.2 billion buyout offer from London-listed Shire. Zalicus Inc. (NASDAQ: ZLCS) is down 72.3% at $1.30 on a failed drug trial.
Hot Asian Companies To Buy Right Now: Range Resources Corporation(RRC)
Range Resources Corporation, an independent natural gas company, engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. The company?s Appalachian region drilling and producing activities include tight-gas, shale, coal bed methane, and conventional natural gas and oil production in Pennsylvania, Virginia, Ohio, and West Virginia. It owns 4,969 net producing wells, approximately 2,750 miles of gas gathering lines, and approximately 1.8 million gross acres under lease. The company?s Southwestern drilling and producing activities cover the Barnett Shale of North Texas, the Permian Basin of West Texas and eastern New Mexico, the East Texas Basin, the Texas Panhandle, and the Anadarko Basin of Western Oklahoma. It owns 1,954 net producing wells, as well as approximately 886,000 gross acres under lease. As of December 31, 2010, Range Resources Corporation had had 4.4 Tcfe of pr oved reserves. It sells gas to utilities, marketing companies, and industrial users. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1975 and is headquartered in Fort Worth, Texas.
Advisors' Opinion:- [By Matt DiLallo]
Looking ahead
Vanguard recently completed its $268.8 million acquisition of assets in the Permian Basin from Range Resources (NYSE: RRC ) . These were liquids-weighted assets, with only 43% of the reserves weighted toward natural gas. It was a good deal for both sides, as Range is focusing its resources and personnel on the highest return projects in its portfolio, making these cash flow assets a much better strategic fit for Vanguard as they enable the company to grow its liquids production and related cash flow.
Hot Asian Companies To Buy Right Now: AspenBio Pharma Inc.(APPY)
AspenBio Pharma, Inc. operates as an emerging biomedical company focused on obtaining the United States FDA clearance for its lead product, AppyScore. Its research and development activities primarily focus on a human appendicitis blood-based test. The company?s lead product candidate, AppyScore, is a blood-based diagnostic test to help physicians manage patients who enter emergency rooms complaining of abdominal pain and suspected of having acute appendicitis. It is also developing animal healthcare products focusing on reproduction. The company was formerly known as AspenBio, Inc. and changed its name to AspenBio Pharma, Inc. on September 26, 2005. AspenBio Pharma, Inc. was founded in 2000 and is based in Castle Rock, Colorado.
Advisors' Opinion:- [By James E. Brumley]
I know on the surface that Venaxis Inc. (NASDAQ:APPY) hasn't exactly been the most riveting of stocks lately. Heck, APPY shares are exactly where they were at the end of July, and volume has been even less than minimal. I'm telling you though, there's just something about this stock - and its chart - that tells me an explosive bullish move is brewing.
- [By Wallace Witkowski]
Venaxis Inc. (APPY) �shares fell 12% to $2.38 on light volume after the medical diagnostics company said it planned to launch an secondary offering of an unspecified number of shares.
- [By Monica Gerson]
Venaxis (NASDAQ: APPY) soared 22.83% to $3.33 in the pre-market trading on positive top-line results from pivotal study of APPY1 test.
Plug Power (NASDAQ: PLUG) shares gained 11.18% to $7.56 in the pre-market after the company reported fourth-quarter results. Plug Power posted a quarterly loss of $0.08 per share, versus the estimated loss of $0.08 per share.
Hot Asian Companies To Buy Right Now: BankFinancial Corporation(BFIN)
BankFinancial Corporation operates as the holding company for BankFinancial, F.S.B., which provides commercial, family, and personal banking services in Illinois. It accepts deposit accounts, such as savings accounts, NOW accounts, checking accounts, money market accounts, certificates of deposit, and IRAs and other qualified plan accounts. The company?s loan portfolio consists of investment and business loans, including multi-family, nonresidential real estate, commercial, construction and land loans, and commercial leases, as well as one-to-four family residential mortgage loans comprising home equity loans, lines of credit, and other second mortgage loans. It also provides financial products and services consisting of cash management, funds transfers, bill payment and other online banking transactions, automated teller machines, safe deposit boxes, wealth management, and general insurance agency services. In addition, the company offers investment, financial planning, and other wealth management services; and sells life insurance, fixed annuities, property and casualty insurance, and other insurance products on an agency basis. It provides its products and services through banking offices and an Internet Branch. As of December 31, 2009, it operated 18 full-service banking offices and 3 express branch facilities in Cook, DuPage, Lake, and Will Counties, Illinois. The company was founded in 1924 and is headquartered in Burr Ridge, Illinois.
Advisors' Opinion:- [By Tim Melvin]
Thompson says the firm likes Bank Financial (BFIN) right now. The bank is in the lucrative Chicago market that has seen a lot of consolidation in the past year. The bank has 20 branches in fairly desirable locations and must be on the target list of anyone looking to expand into Chicago.
Hot Asian Companies To Buy Right Now: Peabody Energy Corporation(BTU)
Peabody Energy Corporation engages in the mining of coal. It mines, prepares, and sells thermal coal to electric utilities and metallurgical coal to industrial customers. The company owns interests in 30 coal mining operations located in the United States and Australia, as well as owns joint venture interest in a Venezuela mine. It is also involved in marketing, brokering, and trading coal. In addition, the company develops a mine-mouth coal-fueled generating plant; and Btu Conversion projects that are designed to convert coal to natural gas or transportation fuels; and clean coal technologies. As of December 31, 2011, it had 9 billion tons of proven and probable coal reserves. The company was founded in 1883 and is headquartered in St. Louis, Missouri.
Advisors' Opinion:- [By Ben Levisohn]
For investors who bought shares of Peabody Energy (BTU) at the beginning of the year, its shares have been like a lump of coal in Christmas stocking. But Goldman Sachs sees a much happier outcome in the future.
Goldman Sachs’ positive view on some coal stocks comes as Credit Suisse reassesses refiners.
Bloomberg NewsGoldman analyst Neil Mehta and Vinit Joshi explain why they raised their rating on shares of Peabody Energy:
We upgrade shares of Peabody Energy (BTU) to Buy from Neutral with 31% total return (including dividends) to our 6-month target price of $26. Four factors underpin our positive view of BTU: (1) the potential for continued cost cutting and volume growth in Australia, (2) the bottoming in met coal prices, (3) improving cash flow and (4) attractive relative and absolute valuation. Even after outperformance in the last three months, BTU has still lagged the S&P500 by over 50% in the last 12 months and 110% in the last 3 years.
Mehta and Joshi also took a look at what they see as the big themes in the coal sector: Cost cutting, restructuring and balance sheets. They make some recommendations:
Own cost-cutting winners, including Buy-rated BTU. Other companies with strong
cost control potential include Neutral-rated [Walter Energy (WLT) and Alpha Natural Resources (ANR).]Buy restructuring stories, including Buy-rated [SunCoke Energy (SXC)]. We see high potential that SXC drops down coke-making assets from the parent to its MLP in 1Q2014, as suggested by management commentary.
Avoid companies with weaker balance sheets, including Sell-rated [Arch Coal (ACI)].
Peabody has gained 3.7% to $20.81, Walter has risen 7% to $18.57, Alpha Natural has advanced 4.3% to $7.99, SunCoke is up 3.3% at $21.24, and even Arch Coal is surging: It’s gained 6.4% to $4.48.
- [By David Smith]
Don't completely turn your back on coal
One thing is demonstrable: The coal companies have taken it on the proverbial chin from a share price perspective during the past few years. Whether solely from an EPA regulatory overload, or with the added effects of an increased availability of cleaner-burning natural gas, even the biggest of the coal companies, Peabody Energy (NYSE: BTU ) , has seen its share price plummet by about two-thirds in just the past two years.
Hot Asian Companies To Buy Right Now: Tidewater Inc.(TDW)
Tidewater Inc., through its subsidiaries, provides offshore service vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels. It provides services in support of offshore exploration, field development, and production, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction and seismic support; and various specialized services, such as pipe and cable laying. The company?s vessels include platform supply vessels, and anchor handling towing supply vessels that are used in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs, platforms, and other installations; towing-supply and supply vessels used in intermediate and shallow waters; and crewboats and utility vessels that are chartered for transporti ng personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations. It also operates offshore tugs used for towing floating drilling rigs; assisting in the docking of tankers; towing barges; assisting in pipe laying, cable laying, and construction barges; and commercial towing operations, including towing barges carrying various bulk cargoes and containerized cargo. In addition, the company operates inshore tugs; production, line-handling, and various other special purpose vessels. Further, it operates two shipyards, which construct, modify, and repair vessels. As of March 31, 2011, the company had 378 vessels serving the global offshore energy industry. The company has operations in the United States, Gulf of Mexico, the Persian/Arabian Gulf, and areas offshore Australia, Brazil, Egypt, India, Indonesia, Malaysia, Mexico, Trinidad, Venezuela, and West Africa. Tidewater Inc. was founded in 1956 and is headquartered in New Orleans, Louisi ana.
Advisors' Opinion:- [By Traders Reserve]
For investors who want a piece of this developing trend, Transocean and Seadrill are two of the bigger players in this arena. Other offshore drillers/rig operators are Noble (NE) and Ensco (ESV). Companies that provide services to offshore drillers and benefit from increases in exploration and drilling activity are Gulfmark Offshore (GLF), Hornbeck (HOS), Seacor (CKH) and Tidewater (TDW).
- [By Seth Jayson]
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Tidewater (NYSE: TDW ) .
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Tidewater (NYSE: TDW ) , whose recent revenue and earnings are plotted below. - [By Jon C. Ogg]
Tidewater Inc. (NYSE: TDW) was started as Buy at Wunderlich Securities.
Whole Foods Market Inc. (NASDAQ: WFM) was started as Buy at Deutsche Bank.
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