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XOM | ExxonMobil s Production From Cepu Block Likely To Increase | ExxonMobil Corporation s NYSE XOM Cepu block in Indonesia is expected to yield crude oil output of 200 000 barrels per day bpd in 2017 per the head of Indonesia s upstream oil and gas regulators The production is anticipated to surge 22 from the previous estimation of 163 910 bpd in 2016 According to the chief of regulator SKKMigas Amien Sunaryadi the growth in production from Cepu was necessary to support the national oil production target of 815 000 bpd for 2017 just below the 2016 target of 820 000 bpd Located 150 kilometers west of Surabaya Cepu block spans across 919 square kilometers compared with 1 670 square kilometers when acquired in 2000 Sukowati discovery which was made in east of Banyu Urip by ExxonMobil has been excluded from the block ExxonMobil subsidiaries Mobil Cepu Ltd and Ampolex Cepu Pte Ltd hold 45 interest each in the block Mobil Cepu is operator of Cepu block Other partners include Pertamina EP Cepu and the Cepu Block Cooperation Body BKS holding 45 and 10 respectively EXXON MOBIL CRP Price
ExxonMobil is the world s best run integrated oil company based on its track record of high return on capital employed As the largest publicly traded oil company ExxonMobil has long been a core holding for investors seeking defensive as well as continued dividend growth The company is engaged in oil and natural gas exploration and production petroleum products refining and marketing chemicals manufacture and other energy related businesses ExxonMobil s strength lies in its balanced operations strong financial flexibility and continuous efficiency and cost control The company s efforts to build an unconventional resource portfolio both in North America and overseas reflect its aim to increase production through higher exposure to large energy resources with long reserve life and low field declines ExxonMobil currently carries a Zacks Rank 3 Hold Some better ranked players from the energy sector are Enbridge Inc NYSE ENB NGL Energy Partners LP NYSE NGL and Murphy USA Inc NYSE MUSA All these stocks sport a Zacks Rank 1 Strong Buy You can see see Confidential from ZacksBeyond this Analyst Blog would you like to see Zacks best recommendations that are not available to the public Our Executive VP Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand |
XOM | ExxonMobil Merger Deal On Track InterOil Shareholders Vote | U S supermajor ExxonMobil Corporation s NYSE XOM shares gained 0 92 on the NYSE on Sep 21 after its 2 5 billion bid to acquire Singapore s InterOil Corp NYSE IOC was approved by the shareholders of the latter The merger which required approval by two thirds of InterOil shareholders saw more than 80 of the shareholders vote in favor of the proposed transaction The transaction which is expected to close by the end of September will result in InterOil stockholders receiving ExxonMobil shares worth 45 for each InterOil share held Additionally ExxonMobil will pay 0 90 per million cubic feet equivalent mcfe for resources of over 6 2 trillion cubic feet in the Elk Antelope gas field In July Irving TX based ExxonMobil had placed a bid for InterOil to enhance its liquefied natural gas position in Papua New Guinea ExxonMobil had managed to outbid French energy giant Total SA TO TOT backed Oil Search s offer of about 2 2 billion to buy part of InterOil s stake in the potentially lucrative Elk Antelope gas field The bidding war came to an end as Oil Search abandoned its pursuit of InterOil owing to a weaker balance sheet than its rival With the deal receiving the approval of InterOil shareholders the merger is left with only its final hurdle the transaction needs to be okayed by the Supreme Court of Yukon where InterOil is established After this approval ExxonMobil which now has a 33 share of the Papua New Guinea liquid natural gas project will receive an additional 36 5 stake as part of the merger EXXON MOBIL CRP Price ExxonMobil is the world s largest publicly traded oil company engaged in oil and natural gas exploration and production petroleum products refining and marketing chemicals manufacture and other energy related businesses With an AAA credit profile and stable cash position ExxonMobil s balance sheet is one of the strongest in the industry However the company s integrated functions make it susceptible to risk from any weakness in global economy As a result ExxonMobil currently carries a Zacks Rank 3 Hold which implies that it will perform in line with the broader U S equity market over the next one to three months A better ranked player from the broader energy sector would be NGL Energy Partners L P NYSE NGL The stock sports a Zacks Rank 1 Strong Buy You can see Confidential from ZacksBeyond this Analyst Blog would you like to see Zacks best recommendations that are not available to the public Our Executive VP Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand |
XOM | Exxon Likely To Divest Norwegian Assets Worth 1 Billion | According to a report recently published by Bloomberg Exxon Mobil Corporation NYSE XOM is contemplating the divestment of some oil fields in Norway s North Sea Reportedly the sale could generate more than 1 billion Although Exxon had talks with potential buyers the sources reveal that it is not going through a formal process According to the sources Exxon may sell Ringhorne Balder and Sigyn oil fields in Norway During 2015 these three fields along with Jotun oil field which is currently in the process of closing down produced roughly 64 000 barrels of oil equivalent per day Exxon s intention to divest the Norwegian assets is in line with the decision of other energy majors like Royal Dutch Shell LON RDSa plc to exit the North Sea TOTAL S A TO TOT is also considering the divestment of 51 interest in its Martin Linge project located off the coast of Norway According to sources these asset sales reflect the strategy of energy sector players to lower cost amid persistent weak oil prices Irving TX based Exxon is the world s largest publicly traded oil company which is engaged in oil and natural gas exploration and production petroleum products refining and marketing chemicals manufacture and other energy related businesses The company is the world s best run integrated oil company given its track record of high return on capital employed However the persistent weakness in crude prices has been dragging the company s upstream business As a result Exxon carries a Zacks Rank 3 Hold implying that it will perform in line with the broader U S equity market over the next one to three months EXXON MOBIL CRP Price A better ranked player in the energy sector is EQT Midstream Partners LP NYSE EQM The partnership sports a Zacks Rank 1 Strong Buy and beat the Zacks Consensus Estimate in three of the last four quarters with an average surprise of 7 17 You can see Confidential from ZacksBeyond this Analyst Blog would you like to see Zacks best recommendations that are not available to the public Our Executive VP Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand |
PCG | Wildfire victims in PG E bankruptcy see 13 5 billion in claims | Reuters A lawyer for the committee representing wildfire victims in the bankruptcy of PG E Corp N PCG said at a hearing on Monday that the committee sees 13 5 billion as the cost to the power provider for paying claims of the victims
Cecily Dumas of BakerHostetler was comparing that expectation with the maximum of 8 4 billion PG E has proposed for paying victims of the wildfires in 2017 and 2018 in Northern California that forced it to file for Chapter 11 bankruptcy protection in January
At the time PG E said it expected wildfire related liabilities topping 30 billion
The utility has already struck settlements worth a combined 12 billion to resolve claims of a group of public entities hit hard by the blazes and insurers who had made payments for wildfire related claims |
PCG | PG E to cut off power to nearly 800 000 customers to reduce wildfire risk | Reuters Power provider PG E Corp s N PCG unit said on Tuesday it would cut off power for nearly 800 000 customers across northern and central California to reduce wildfire risk following severe wind warnings
The company expects to shut off power in some areas early Wednesday and said the outage will potentially impact 34 Californian counties
PG E which filed for bankruptcy protection this year had said it would significantly expand the practice of shutting off power to communities at risk of wildfire when conditions demand it despite objections from some consumer advocates who said such disruptions can harm people who need electricity for medical equipment |
PCG | Judge opens door to PG E wildfire victims noteholders filing rival reorganization plan | By Jim Christie SAN FRANCISCO Reuters The judge overseeing the bankruptcy of PG E Corp N PCG on Wednesday issued an order opening the door to a group of noteholders and wildfire victims to file their own reorganization plan for the California power provider PG E s shares tumbled 28 in after hours trade to 7 90 Bankruptcy Judge Dennis Montali said in his order filed in U S Bankruptcy Court in San Francisco that he favored allowing the noteholders to file their plan because it has the support of the committee representing victims of the massive California wildfires in 2017 and 2018 that pushed PG E to seek Chapter 11 bankruptcy protection in January Allowing the noteholders which include Apollo Capital Management and Elliott Management Corp among others to file while PG E advances its own plan may help force the sides to negotiate a settlement of the case Montali added The rival plan offers more money to wildfire victims and would give debt holders control of PG E after it emerges from bankruptcy Noteholders propose putting 29 2 billion in new money into the San Francisco based power provider in exchange for new debt and a controlling equity stake PG E s plan backed by current major shareholders would use 34 billion in new debt and 14 billion in equity commitments to reorganize The company in a statement provided to Reuters said it was disappointed by Montali s order We are confident that our fully funded plan of reorganization which will satisfy all wildfire claims in full while treating all stakeholders fairly and protecting customers is the better solution for all constituencies PG E said Montali said he was swayed by the committee of wildfire victims noting it has spoken loudly and clearly that they want their and the senior noteholders proposed plan to be considered Montali said he wants the noteholders to file their plan by Oct 17 The wildfire victims committee backs the noteholders plan because it expects the proposal to provide more than the 8 4 billion in compensation PG E has proposed for the victims Their claims may be worth 13 5 billion a lawyer for the committee said at hearing on Monday When it filed for bankruptcy PG E estimated its total wildfire related liabilities could top 30 billion In addition to the 8 4 billion it has proposed paying individual wildfire victims as part of a reorganization PG E recently agreed in a settlement to pay 11 billion to insurers to compensate their wildfire related payments Their claims were originally worth 20 billion The noteholders have offered to match the 11 billion settlement
Also on Wednesday PG E cut off electricity to more than 500 000 homes across California in a planned outage of unprecedented scale to lower the risk of hot dry weather and high winds damaging its equipment and sparking fires |
PCG | California Governor Attacks PG E for Blackout Caused by Greed and Neglect | Bloomberg Faced with mounting public anger over massive blackouts California Governor Gavin Newsom blamed Pacific Gas Electric Co NYSE PCG for years of greed and neglect and demanded major structural changes at the bankrupt utility
Newsom s comments came as many Californians questioned whether PG E overreacted to a windstorm that didn t prove as powerful as forecast The company cut electricity to more than 2 million people the largest preemptive blackout in the state s history to prevent its power lines from sparking wildfires
The Democratic governor who on Wednesday called the blackouts appropriate under the circumstances took a dramatically harsher tone Thursday blaming PG E for not hardening its grid and saying the outage was the result of years of bad choices His comments came just before PG E s chief executive officer made his first public appearance apologizing to customers for the hardship the power failures have caused while defending the decision
The company said it has restored service to more than half of the customers affected according to a statement issued at about 11 p m local time
Shares of PG E plunged on Thursday after the utility was stripped of exclusive control over its bankruptcy process and a judge allowed competing plans from wildfire victims and bondholders to advance The surprise led Citi analysts to cut the stock to sell and warn there s a 75 chance the shares could fall to zero
Story of Greed
It s decisions that were not made that have led to this moment in PG E s history it is not conditions Newsom said at a Thursday evening press conference in the state s emergency operations center This is not from my perspective a climate change story so much as a story of greed and neglect
Newsom said he wanted to see a major reorganization of this entity and said PG E was too large to move quickly But the governor stopped short of saying what kind of structural changes he preferred He suggested the company needed to be far more surgical about future outages saying some counties didn t need to be included in this week s blackouts He acknowledged however that such preemptive power cuts should remain an option for the state s utilities when faced with dangerous winds
PG E he noted made a decision last November not to cut power near the town of Paradise during a windstorm A transmission line then sparked the Camp Fire the state s deadliest blaze which killed 86 people
312 000 Without Power
After affecting almost 750 000 accounts or about 2 25 million people the utility said about 312 000 customers in Northern California were still without power late Thursday The adverse weather has mostly died down and PG E said it would begin to inspect an unspecified subset of the 25 000 miles of transmission lines that were shutdown a necessary precursor to restoring power
Newsom called on California utility regulators to review PG E s actions A spokeswoman for the California Public Utilities Commission said the agency as a policy reviewed all intentional outages by California utilities
PG E filed for bankruptcy in January facing an estimated 30 billion in liabilities from two consecutive years of deadly wildfires blamed on its equipment
CEO Bill Johnson who took over in May said the company made a determination that the blackouts were necessary for safety reasons to ensure zero risk of sparks He told reporters at a San Francisco press conference that started an hour after the governor s that it s very likely the company will need to cut power again in the future Johnson said the utility will try to be more surgical about shutoffs
We Failed
This is not how we want to serve you this is not how we want to run our business he said We are in the business of providing power not taking it away
Johnson and other PG E executives cited high wind speed measurements in 21 of the 33 counties affected and said they found fallen tree branches on some lines that could have caught fire
The main failure was in communicating with customers about the outages company officials said
Johnson said the utility posted outage maps with inconsistent or inaccurate information its website crashed and its call center was overwhelmed We failed our customers said Laurie Giammona senior vice president and chief customer officer for PG E
The CEO declined to respond directly to the governor s remarks saying I didn t come here to deal with the past I came here to help improve the future I haven t delved into all those matters I might have some slight disagreement with the governor if I did
Johnson asked local residents not to take their frustrations out on PG E workers saying some employees had been shot at punched and sworn at The buck stops with me he said |
PCG | PG E turns down San Francisco s 2 5 billion offer to buy assets | By Shanti S Nair Reuters PG E Corp rejected a 2 5 billion offer from San Francisco to buy the bankrupt Californian company s power lines and other infrastructure within the city calling the offer inadequate The offer significantly undervalued the assets and a deal would not be in the best interest of the company s customers PG E s chief executive officer Bill Johnson wrote in a letter to San Francisco Mayor London Breed and City Attorney Dennis Herrera The company s financing strategy to emerge from bankruptcy did not include selling off company assets Johnson said in the letter which was dated Oct 7 Although we cannot accept your offer we want to clearly communicate that PG E intends to continue working with the City to best serve the citizens and businesses of San Francisco Johnson wrote San Francisco had made the offer in September eight months after the utility sought Chapter 11 bankruptcy protection Breed and Herrera responded on Friday by saying that San Francisco would continue to pursue the acquisition of PG E s electrical assets They said in a statement that arguments made by the company on the proposal were inconsistent with the comprehensive analysis done by the city and its financial advisers
We aren t surprised by PG E s response so far the two officials said We re also not giving up Now more than ever it is clear that we must take back control of San Francisco s electric service and achieve energy independence |
PCG | California governor demands PG E accountability for mismanaging power shutoffs | By Steve Gorman LOS ANGELES Reuters California Governor Gavin Newsom said on Monday that utility Pacific Gas and Electric Co should be held accountable for mismanaging last week s widespread power shutoffs and urged the company to provide credits or rebates to affected customers Separately the California Public Utility Commission ordered corrective steps by PG E the state s largest investor owned utility while summoning eight of its top executives to an emergency meeting on Friday The utility a unit of PG E Corp N PCG cut off electricity to more than 730 000 homes and workplaces in northern California last week in a bid to reduce wildfire risks posed by extremely windy dry weather The precautionary shutdown unprecedented in its scope has been widely criticized as being haphazardly conducted on too large a scale with insufficient advance notice to affected customers On Thursday the governor said the power outage followed years of mismanagement by the utility and branded its handling as unacceptable Chief Executive Bill Johnson publicly acknowledged that day that PG E had fallen short in its preparations for the outage In response to state officials latest moves Johnson again acknowledged room for improvement while defending the broad scale power cutoff as the right decision He added that there were no catastrophic wildfires started last week in the utility s service areas Newsom said he had sent a letter to Public Utilities Commission President Marybel Batjer confirming that the agency will conduct a comprehensive inquiry and review of PG E s planning implementation and decision making process failures https Californians should not pay the price for decades of PG E s greed and neglect Newsom said We will continue to hold PG E accountable to make radical changes prioritizing the safety of Californians and modernizing its equipment Newsom also urged the company to provide affected customers an automatic credit or rebate of 100 per residential customer and 250 per small business as compensation Separately Batjer sent PG E executives an eight page letter on Monday directing the utility outlining seven major areas where immediate corrective actions are required the commission said in a statement Failures in execution combined with the magnitude of this power shutdown event created an unacceptable situation that should never be repeated Batjer wrote Loss of power is not a mere inconvenience it endangers lives and property especially those individuals who are reliant on power for medical reasons Several of the corrective actions ordered by the commission dealt with website crashes and an overwhelming surge in call center activity the utility experienced during the shutdown
PG E filed for bankruptcy in January 2019 citing potential civil liabilities in excess of 30 billion from major wildfires linked to its transmission wires and other equipment |
PCG | San Jose to propose turning PG E into giant customer owned utility WSJ | Reuters San Jose California s third biggest city is proposing to convert PG E Corp N PCG into the country s largest customer owned utility the Wall Street Journal reported on Monday citing the city s mayor
Mayor Sam Liccardo said in an interview to the WSJ the city served by PG E hopes to persuade other cities and counties in coming weeks to line up behind the plan
The plan is to strip PG E of its status as an investor owned company and turn it into a nonprofit electric and gas cooperative the report added
Liccardo told the WSJ the time has come for the people dependent on PG E for essential services to propose a new direction
PG E did not immediately respond to a Reuters request for comment |
VZ | Will T Mobile Take Down Telecom Stocks | The latest buzz taking the wireless industry by storm is T Mobile US Inc s MetroPCS Communications NYSE TMUS decision to abolish overage fees unfolding the company s latest strategy under the Un carrier move it started last year This implies that customers of T Mobile US will no more be required to pay extra charges for using voice text or data service beyond their subscribed plan
While the strategic decision is a welcome change for wireless users it also calls for heightened competition and price war against major national players like AT T Inc NYSE T Verizon Communications Inc NYSE VZ and Sprint Corporation NYSE S Further it also presages a radical change in the pricing model of the industry as these charges contributed significantly to the top line of the carriers
T Mobile in its attempt to fortify its position in the U S telecom industry eliminated annual service contracts With the introduction of its Simple Choice plan last year it began gradually axing overage fees
The company in its press release mentioned how 20 million Americans were affected by overage charges in 2013 and the top three players made around 1 billion by levying these fees
T Mobile CEO John Legere in his statement took a clear stance on discarding overage fees and highlighted it as a predatory practice undertaken by wireless carriers He also challenged other big players to abolish their overage fees that impose an added cost burden on consumers
However the street remains wary of T Mobile s strategic step as the company s share price went 1 down to 26 74 at the end of trading on Monday We believe that in a market where prices remain highly competitive and every pricing strategy is imitated by close competitors it will be difficult for other players to remain unaffected by T Mobile US s new move
This indicates that we are to see more such changes in pricing policies of other companies in the coming days which are likely to affect their overall revenue models Especially for small carriers the decision will mean a drastic change which can hardly be affordable given the scale of operation and revenue generating abilities of these companies As a result we see a significant headwind hitting the market valuation of some of these telecom companies in the near future
How the new changes will be accommodated by other carriers will presumably decide the market movements of these stocks We believe that while T Mobile US has set a new trend by axing overage charges to lure customers following it as an industry norm and adopting a new pricing model by all telecom carriers will depend upon the long term viability of such changes
While AT T currently sports a Zacks Rank 2 Buy T Mobile US Verizon and Sprint carry a Zacks Rank 3 Hold |
VZ | BlackBerry Plans To Enter M2M Market | The beleaguered smartphone maker Blackberry Ltd NASDAQ BBRY has decided to enter the lucrative machine to machine M2M wireless communications market Management has undertaken Project Ion to help business enterprises to provide a seamless connection between people devices and machines for greater value addition
Project Ion will focus on developing a secure public application platform based on the company s proprietary QNX software and BlackBerry secure enterprise mobility management system BlackBerry will also provide Internet based technological designs applications and services to enhance productivity and improve real time decision making of large business enterprises
The M2M wireless communication technology has been significantly driving mobile data revenues for wireless service providers A typical mobile M2M messaging system establishes a wireless communication link between a group of devices and a computer server or another device for transmitting data contained within those devices
The M2M market provides the opportunity to mobile enabled millions of devices like cars utility meters vending machines and consumer electronics devices to get connected to a wireless network
Several industry researchers have estimated that the financial opportunity of the global M2M communications market may reach 45 billion to 53 billion between 2018 and 2020 Over the same time frame the number of M2M module deployment is predicted to rise from 175 million to 470 million Industry verticals like healthcare manufacturing energy and utilities will largely benefit from the progress
Next generation 4G technology is also boosting the growth of the M2M segment as it provides exceptionally high Internet speeds Massive throughput and low latency period of the LTE technology enable easy access for large scale applications like fleet management security automotive navigation and video content
Meanwhile in the U S all four national telecom operators namely AT T Inc NYSE T Sprint Corp NYSE S Verizon Communications Inc NYSE VZ and T Mobile US Inc NYSE TMUS are expanding their M2M operations |
XOM | Tillerson on first day addresses dissent and calls Mexico Canada | By Lesley Wroughton WASHINGTON Reuters U S Secretary of State Rex Tillerson called for unity and understanding on his first day at the State Department amid internal dissent over policies of President Donald Trump which have also antagonized a range of allies Within hours of starting the job Tillerson reached out by phone to counterparts from Mexico and Canada spoke by phone with Israeli Prime Minister Benjamin Netanyahu and met with German Foreign Minister Sigmar Gabriel department officials said Hundreds of State Department officials greeted the former Exxon Mobil Corp N XOM chief executive with applause as he entered the building Louder cheers broke out when Tillerson thanked acting Secretary of State Tom Shannon for standing in after the departure of John Kerry Hi I m the new guy said Tillerson who was sworn in on Wednesday after the Senate confirmed him to his post despite concerns about his ties with Russia Trump has called for closer relations with Russian President Vladimir Putin In remarks that did not touch on foreign policy specifics Tillerson addressed the dissent within the department that emerged this week in a memo signed by more than 900 officials in protest against Trump s decision to suspend the U S refugee program and restrict travelers from seven Muslim majority countries One of the great challenges and thrills for the State Department staff is deciding how to confront changing conditions in every corner of the world said Tillerson I encourage all of you to use your natural and well developed skills to adapt to changes here at home as well I know this was a hotly contested election and we do not all feel the same way about the outcome said Tillerson Each of us is entitled to expression of our political beliefs but we cannot let our personal convictions overwhelm our ability to work as one team He also signaled he would impose changes to improve the functioning of the department and said the security of diplomats was a priority There was no readout after his meeting with Gabriel at the State Department although discussions were likely focused on the NATO alliance the future of the Iran nuclear agreement and trade His separate phone calls with foreign ministers from Canada and Mexico coincided with Trump saying on Thursday he wanted early talks on the North American Free Trade Agreement which he wants to renegotiate or repeal I know him and we are very excited having the opportunity to work with him Mexican Foreign Minister Luis Videgaray said in an interview on CNN on Thursday evening adding that he would meet Tillerson shortly The two met a couple of times when Videgaray was finance minister and Tillerson at Exxon he said Tillerson also spoke by phone with Netanyahu the State Department said in a statement It did not say whether they discussed a White House statement that said Israeli settlements in occupied territories may not be helpful in achieving peace with Palestinians adopting a more measured tone than its previous pro Israel announcements In all of his conversations Secretary Tillerson stressed America s steadfast commitment to its key allies and partners as it works to protect the interests and safety of the American people acting State Department spokesman Mark Toner said in a statement Tillerson inherits a messy globe with war in Syria and Iraq nuclear armed North Korea threatening to launch an intercontinental ballistic missile and increased violence in eastern Ukraine Over the past 48 hours more foreign policy challenges piled up as tensions erupted between the United States and ally Australia over an existing refugee swap which Trump called a dumb deal
Strains with Iran also increased after the White House said it was putting Tehran on notice for test firing a ballistic missile and the new administration moved to impose sanctions on several Iranian entities on Friday according to sources familiar with the matter |
XOM | Trump adds nuance to pro Israel approach ahead of Netanyahu visit | By Matt Spetalnick and Luke Baker WASHINGTON JERUSALEM Reuters During his election campaign Donald Trump signaled his presidency would be a boon for Israel and tough on Palestinians The U S Embassy would move to Jerusalem he would name an ambassador who backs Israeli settlements on land Palestinians seek for a state and there would be no pressure for peace talks But as Trump prepares for his first White House meeting with Prime Minister Benjamin Netanyahu his administration has toned down elements of its pro Israel bravado suggesting that a president perceived to have acted hastily on many early policy initiatives will be more cautious with Middle East diplomacy After nearly three weeks in office there is growing consensus in the White House that the Israeli Palestinian conflict will require extensive deliberations and consultations with key lawmakers and U S allies before a decision on how to proceed according to people familiar with the administration s thinking This is a case where campaign promises run head on into geopolitical reality and they have to be adjusted accordingly said a U S official speaking on condition of anonymity As a result relocating the U S Embassy from Tel Aviv to Jerusalem a step world leaders including Jordan s King Abdullah warned against and which would probably inflame the Muslim world has been put on hold for now At the same time the White House has adopted a more measured stance on Israeli settlement building in occupied territory than Trump s campaign rhetoric indicated Even so there is little doubt that when Netanyahu meets Trump on Feb 15 he will find a Republican president determined to show more warmth to Israel than his Democratic predecessor Barack Obama with whom he had an acrimonious relationship Social media exchanges have suggested a budding bromance between Netanyahu and Trump who has pledged to be the best friend Israel has ever had in the White House As a result Palestinians fear their leaders will be frozen out and their statehood aspirations pushed aside Netanyahu though may prefer to keep the focus on forging a common front against Iran Israel s regional enemy and a target of Trump s ire while shunting the Israeli Palestinian dispute further down the agenda aides say Still it will be an issue that can t be ignored especially after Israel s parliament on Monday approved a law retroactively legalizing 4 000 settler homes build on privately owned Palestinian land The move drew international condemnation Barring a curveball from the sometimes unpredictable U S president Trump is unlikely to use the talks to press Netanyahu for concessions toward the Palestinians such as a temporary freeze on settlement building in the way Obama did But neither can Trump afford to be seen to abandon the U S commitment to a two state solution the bedrock of Washington s Middle East policy since the 1993 interim peace accords and a principle embraced internationally CAREFUL STATEMENT ON SETTLEMENTS A White House statement on Feb 2 set forth a more nuanced position than Trump expressed during the campaign backing away from a long standing U S view of settlement activity as an impediment to peace Instead it said new settlements or expanding existing ones beyond their current boundaries may not be helpful toward that goal That shift transpired just hours after Trump met briefly with King Abdullah on the sidelines of an event in Washington Nevertheless the emerging shape of Trump policy remains decidedly pro Israel and more accommodating than at any time since Republican George W Bush occupied the White House For the Palestinians that is troubling It seems we are headed for a new policy with this administration that is different from its predecessor in how it deals with the Palestinian leadership and the Palestinian cause said Wasel Abu Youssef a member of the Palestine Liberation Organization s executive committee There has been no contact between the Palestinian leadership and the Trump administration so far Palestinian officials said Moderate Western backed Palestinian President Mahmoud Abbas was among the first world leaders Obama called on his first full day in office in 2009 A White House official insisted however that the Trump administration intends to develop a relationship with the Palestinian Authority The official did not elaborate All the same many Israeli officials do not read the White House s settlements statement as a warning to Israel or a reining in of Netanyahu rather they see it as largely positive Not only does it conclude that settlements do not block peace prospects it says construction within established settlements whether major blocs close to Israel or others scattered across the West Bank is acceptable to Washington Bibi will be happy said an Israeli diplomat using Netanyahu s nickname He can put new settlements on hold and hold off the right wing by pointing to Trump At the same time he can build as much as he wants within existing settlements In that regard the lines drawn by the White House help Netanyahu fend off demands from the far right in his coalition for sweeping steps like annexing portions of the West Bank There are many decisions that are hostile to the Palestinians said Hanan Ashrawi a senior Palestinian legislator and scholar Trump made some promises during the election that cannot be applied on the ground because it would create uncertainty violence and instability which will be beyond anyone s ability to control Palestinians would be alarmed if Trump decided to proceed with moving the U S Embassy to Jerusalem essentially recognizing the city as Israel s capital despite international objections that its status must be decided in negotiations The Palestinians want East Jerusalem captured by Israel in the 1967 Middle East war and annexed in a move not recognized internationally as the capital of their future state Trump and his aides have played down the prospects for a quick embassy move since he took office on Jan 20 But he could come under pressure to address the issue during Netanyahu s visit No one can be sure what the president might say MODERATING INFLUENCE Some experts see a moderating influence as Trump fills out his national security team It has members such as Secretary of State Rex Tillerson a former Exxon Mobil NYSE XOM chief executive with extensive contacts among Gulf Arab governments and Defense Secretary Jim Mattis a retired Marine general They will have to deal with other sometimes ideologically driven advisers with close personal ties to Trump David Friedman Trump s former bankruptcy lawyer and now nominee as ambassador to Israel has raised funds for a West Bank settlement and voiced doubt about Palestinian statehood The president s son in law Jared Kushner whose family has donated tens of thousands of dollars to the same settlement has been assigned a senior role in Israeli Arab diplomacy Aides may be moving circumspectly also in hope of keeping the door open if Trump who has touted his skills as a master dealmaker decides to seek what he has called the ultimate deal Israeli Palestinian peace To pursue such an initiative the United States needs to be seen as an even handed mediator while also overcoming the rigid disputes that have scuppered so many peace efforts over the years settlements borders the status of Jerusalem what to do with Palestinian refugees and Palestinian political divisions The last U S brokered round of peace talks collapsed in 2014 It is questionable whether the Trump administration will be inclined to devote much attention to the Israeli Palestinian issue at a time when it is distracted by other big domestic and international priorities In the Middle East alone the fight against Islamic State and countering Iran are higher on the Trump agenda
However if Trump at some point does opt to wade in where so many of his predecessors have failed for Netanyahu who is looking for a reset of U S Israeli relations it might be a case of be careful what you wish for |
XOM | Tillerson arrives in Bonn amid questions over U S foreign policy | By Lesley Wroughton WASHINGTON Reuters Rex Tillerson arrived in Bonn on Wednesday on his maiden foreign trip as U S secretary of state to attend a summit of G20 top economies at a time when many are wondering how far President Donald Trump s America First message will reshape U S foreign policy From North Korean provocations and reports Russia has deployed a new cruise missile to concerns about China s actions in the South China Sea and conflicts in Yemen Syria and Ukraine there is no shortage of global challenges Tillerson did not make any remarks on his arrival in Bonn Senior U S officials said Tillerson s two day trip was mostly to listen to what G20 counterparts had to say conceding that this might frustrate some Tillerson will also participate in a series of sessions on a shifting global order cooperation with Africa and conflict prevention It will be a prelude to the G20 leaders summit in Hamburg Germany in July which Trump is due to attend I think he is mostly going on a listening tour said a U S official who spoke on condition of anonymity saying that may disappoint U S allies If our guy says well I am just here to listen that s going to be dispiriting U S allies worry about Trump s unpredictability They wonder how far he will go in warning China and Iran about their behavior whether he will back out of long standing treaties and trade deals tear up the nuclear agreement with Iran build a border wall with Mexico or cozy up to Moscow Tillerson the former Exxon Mobil NYSE XOM CEO has international business experience but none in government State Department officials said he would meet with counterparts from Britain Saudi Arabia Turkey Italy and Oman while in Bonn and participate in larger meetings on Yemen and Syria He also will hold his first meeting as secretary of state with Russian Foreign Minister Sergei Lavrov at a time when Trump administration contacts with Moscow are under the spotlight with the resignation of national security adviser Michael Flynn Flynn had been the new administration s main contact for many foreign ambassadors to the United States The conversation with Mr Lavrov will be a very important one a senior State Department official said speaking to reporters ahead of Tillerson s departure During his meeting with Lavrov on Thursday Tillerson will seek pragmatic and constructive cooperation in areas where our interests overlap the official said The obvious ones which have been discussed many times are counter ISIS and counterterrorism would be areas that the Secretary would hope to develop some possible avenues for cooperation the official said He will also press Russia to fully implement the Minsk peace accords to end violence in eastern Ukraine The G20 is made up of developed economies and emerging nations such as China India Indonesia Mexico South Africa and Brazil Jim Wilkinson a senior adviser to former Secretary of State Condoleezza Rice said it was vital for Tillerson to establish a relationship with fellow ministers during his first trip That chemistry with counterparts begins on the first trip he said Secretary Tillerson and his counterparts will be working on some of the toughest issues around the world and that s going to require trust
While Tillerson has been on the job for just two weeks and may not be immersed in all subjects yet Wilkinson said Foreign ministers will be understanding that in the early days he may not have all the answers but they will want to know they have a conduit to someone who can speak for the U S |
CSCO | Cisco s Long Term View Disappoints Revenue Outlook Down | Cisco Systems Inc NASDAQ CSCO recently provided long term 3 5 years growth targets Management now projects revenues to increase in the range of 1 3 more or less stable margins and mid single digit growth in earnings per share EPS Moreover the company expects to return greater than 50 of free cash flow to shareholders Uninspiring Outlook Hurts StockOver the 3 5 year time frame Cisco projects Infrastructure Platforms Switching NGN routing Wireless Data Center revenues to remain almost flat while Security Applications and Services to grow low mid teens high single digits low teens and mid single digits respectively Other SP Video hardware revenues are projected to decline mid single digits Notably the current top line growth projections were lower than the company s previously provided long term guidance at the end of calendar 2013 Per CRN the company had then projected revenues to grow 3 6 throughout the next 3 5 years which was also lower than the original 5 7 long term outlook it gave in calendar 2012 Cisco anticipates revenues of 48 billion at the end of fiscal 2017 which reflects a CAGR of 2 over 2014 2017 lower than its long term outlook 2013 However anticipated EPS of 2 39 in fiscal 2017 reflects CAGR of 6 over the same period primarily backed by improving operating margin and stringent cost cutting Cisco Systems Inc Revenue TTM Shares fell almost 2 4 in the next two trading sessions reflecting the bearish stance of investors We note that Cisco has underperformed the S P 500 Index on a year to date basis While the stock returned 3 6 the index gained 8 3 Intensifying Competition HeadwindCisco s revenues are expected to decline in the range of 6 4 on a year over year basis in fourth quarter fiscal 2017 The decline can primarily be attributable to lower order which is impacted by intesifying competition from several smaller players like Huawei and Arista Networks NYSE ANET Moreover growing competition from Facebook s NASDAQ FB Open Compute Project OCP is impacting Cisco s dominance in the switch market We also believe that ongoing transition to subscription based model will continue to hurt the top line growth at least in the near term Long term Growth Drivers ExistNevertheless increasing software mix Cisco targets to deliver more than 30 of revenues up from 19 in fiscal 2014 from software by fiscal 2020 is a key catalyst We note that software revenue is projected to improve at a CAGR of 12 15 over fiscal 2014 2020 Moreover Cisco is focused on re aligning product portfolio towards Hybrid and Software as a Service SaaS offerings which will drive software revenues in the long haul Additionally the company expects recurring revenues to increase from an anticipated 30 in fiscal 2017 to more than 37 in fiscal 2020 We also believe that Cisco s expanding footprint in the rapidly growing Security market is promising Per Gartner worldwide spending on information security is expected to reach 90 billion in 2017 an increase of 7 6 over 2016 and to top 113 billion by 2020 Zacks Rank Key PickCisco currently carries a Zacks Rank 4 Sell Extreme Networks NASDAQ EXTR with a Zacks Rank 2 Buy is a better ranked stock worth watching in the same sector You can see Long term EPS growth for Extreme Networks is currently pegged at 17 5 Trades Could Profit Big League from Trump Policies If the stocks above spark your interest wait until you look into companies primed to make substantial gains from Washington s changing course Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals tariffs lower taxes higher interest rates and spending surges in defense and infrastructure |
PCG | PG E sees billions more in wildfire costs in 2019 | Reuters Crippled California power company PG E Corp N PCG reported a rise in quarterly losses on Friday and forecast more costs related to the 2017 and 2018 wildfires that have forced it to file for bankruptcy and seek new public and private financial support
The company now expects costs for the year of 3 8 billion to 4 1 billion after tax compared with 1 billion to 1 4 billion seen earlier
The San Francisco based utility filed for bankruptcy this past January citing potential liabilities of more than 30 billion stemming from the wildfires
The forecast includes about 1 51 billion to 1 48 billion in costs for the 2017 Northern California wildfires and 1 61 billion to 1 58 billion related to the 2018 Camp Fire blaze
The Camp Fire wildfire erupted in November of 2018 destroyed nearly 19 000 homes and killed 85 making it the deadliest single wildfire in California history
In May state fire investigators determined that PG E transmission lines caused the fire
The company on Friday reported a wider net loss attributable to shareholders of 2 55 billion or 4 83 per share in the quarter ended June 30 from 984 million or 1 91 per share a year earlier https The loss was mainly from a 3 9 billion pre tax charge for estimated third party claims related to the wildfires
Excluding items the company reported a profit of 1 10 per share beating analysts estimates of 98 cents according to IBES data from Refinitiv
Total operating revenue fell to 3 94 billion from 4 23 billion |
PCG | PG E evaluating proposal from hedge funds Knighthead Capital Abrams Capital | Reuters Power producer PG E Corp said on Friday it is evaluating a proposal from hedge funds Knighthead Capital Management and Abrams Capital Management to provide equity capital commitments supporting a plan to reorganize the company The Company has received the financing proposal from Abrams and Knighthead and is evaluating it including the backstop commitment letters and related materials in consultation with the Company s advisors The Company will respond to the proposal in due course PG E said in a statement Shareholders Knighthead Capital and Abrams in a letter to PG E on Thursday proposed raising 15 billion in equity to fund a planned reorganization of the power producer which is facing huge liabilities from California wildfires The proposed fundraising a rights offering of new shares is the latest effort to rescue PG E which sought Chapter 11 bankruptcy protection earlier this year after severe wildfires in 2017 and 2018 resulted in more than 30 billion in liabilities Knighthead and Abrams pledged to purchase a portion of the offered equity if shares are left unsold through a so called backstop commitment |
PCG | PG E s Plan to Cap Fire Liabilities at 18 Billion Draws Outrage | Bloomberg California utility giant PG E Corp NYSE PCG has issued its long awaited plan for emerging from the largest utility bankruptcy in U S history Raise debt offer equity and cap the wildfire liabilities that led to its collapse at 18 billion less than half of what victims and insurers have asked for
Within hours of its release the plan had sparked outrage
The proposal is a fraction of what wildfire victims would need to rebuild their lives said Patrick McCallum who co chairs a group representing victims of blazes that PG E s equipment has been blamed for sparking The fires destroyed tens of thousands of structures across Northern California in 2017 and 2018 killed more than 100 people and buried the company in so many legal claims it was forced to file for Chapter 11 in January
The plan PG E submitted in federal court on Monday kicks off the most contentious phase yet of a bankruptcy that has already attracted some of the biggest names in the financial world including Pacific Investment Management Co and Elliott Management Corp Since the company s collapse what has been described as climate change s largest financial casualty to date wildfire victims state politicians activist investors and ratepayer advocates have clashed over the future of the company
PG E Chief Financial Officer Jason Wells described the company s plan on Monday as a crucial step in a multistep process and said it may eventually be revised depending on what the courts find the company legally responsible for paying
It s a framework Wells said
Mike Danko a lawyer representing some wildfire victims called it a plan that s dead on arrival
Wildfire Estimates
Complicating PG E s proposal is the fact that claims tied to the blazes are getting tallied as part of a separate court process that s only just begun While the company has given estimates it may be months before the utility has a clear picture of its actual liabilities
Any exit plan hinges on that estimate The official tally could lead to an entire rewrite of PG E s reorganization A total that s higher than PG E is capable of paying threatens to wipe out current shareholders since under the U S Bankruptcy Code fire victims would get paid in full first
That puts PG E in a tenuous position as key creditor groups clamor to pitch their own restructuring proposals to U S Bankruptcy Judge Dennis Montali In August Montali said he doesn t expect PG E s plan to be the final since some details aren t yet available But he said the company must present something credible or else he may open the door to rival ones
Meanwhile time is running out for PG E The company has until June to get out of bankruptcy if it wants to participate in a fund recently established by California to help utilities cover the cost of future fires The alternative is facing the prospect of another catastrophic blaze that could force it into financial ruin once again
Hitting Snags
PG E s plan has already hit some snags A group led by Pimco and Elliott have been floating one plan that would all but wipe out the stakes of current stakeholders and hand control of the company over to them They ve fought to have their proposal considered by Montali PG E shareholders would keep their current holdings under the company s plan but their stakes may be significantly diluted by new shares issued
On Sept 6 a measure that would ve allowed the company to use tax free state bonds to pay off its fire claims stalled in California s legislature And San Francisco is offering to buy some of the utility s local electrical assets for 2 5 billion The city PG E s hometown sees the deal as an opportunity to save ratepayers money and fulfill its long held desire to break away from the company
What Bloomberg Intelligence Says
A reportedly failed bid to use tax free state bonds to cover wildfire liabilities likely makes the sufficiency and nature of plan funding even more susceptible to attack
Negisa Balluku litigation analyst
Click here to view the report
PG E filed its plan without an outline that describes in plain terms how creditors will be treated That outline known as a disclosure statement typically helps creditors decide how to vote on the reorganization Montali permitted PG E to put off filing it
The company did submit a summary with key details Under the plan we filed today we will meet our commitment to fairly compensate wildfire victims and we will emerge from Chapter 11 financially sound and able to continue meeting California s clean energy goals PG E Chief Executive Officer Bill Johnson said in a statement Monday
The case is PG E Corp 19 bk 30088 U S Bankruptcy Court Northern District of California San Francisco |
PCG | NewsBreak PG E Settles for 11 billion on Wildfire Claims | Investing com Power company Pacific Gas Electric NYSE PCG said on Friday that it had reached an 11 billion settlement with entities representing insurance claims related to wildfires in 2017 and 2018
The entities represent about 85 of subrogation claims
PG E says the claims were based on payments made by insurance companies to individuals and businesses with coverage for wildfire damages
The claims stemmed from the wine country fires in October 2017 and November s Camp Fire which destroyed most of Paradise California and killed 86 people The fires were caused by faulty electrical transmission lines owned and operated by PG E
PG E is trying to secure approval for a bankruptcy reorganization plan Shares of the company were up 8 9 in premarket trading |
PCG | PG E noteholders ready to invest 29 2 billion as part of reorganization plan | Reuters A group of PG E Corp N PCG noteholders said in a court filing on Wednesday that they are ready to invest 29 2 billion into the power producer as part of a reorganization plan that will pay off liabilities from wildfires that drove it to bankruptcy The proposed plan will create two trusts a 14 5 billion trust for compensating individual wildfire victims and an 11 billion trust for paying insurers with subrogation claims against PG E for payments they had made after the blazes in 2017 and last year according to the filing in the U S Bankruptcy Court in San Francisco The plan will give the noteholders new debt and a controlling equity stake in a reorganized PG E Subrogation allows insurers to recoup funds that they have paid to policy holders for insured losses from third parties that they hold responsible for the losses The committee representing the wildfire victims in PG E s bankruptcy is supporting the noteholders group PG E joined by major shareholders is opposing efforts by the noteholders to be allowed to file their reorganization plan The company on Sept 19 outlined its own plan that will pay 17 9 billion for wildfire claims and caps payouts to victims at 8 4 billion and to insurers at 8 5 billion Earlier this month the company reached an 11 billion settlement to resolve most claims by insurance carriers related to the wildfires
At the time of its Chapter 11 filing in January PG E projected it could face more than 30 billion in liabilities from wildfires including last year s Camp Fire the deadliest and most destructive wildfire of California s modern history |
VZ | Ordinary Americans Targeted In Government s Anti Terrorism Crosshairs | It s one of the most explosive national security leaks ever And we re guessing that Edward Snowden the whistleblower who ripped the lid off the story is holed up in a dingy Hong Kong basement sleeping with one eye open The former CIA employee just revealed that he was the inside source behind shocking revelations about the level of government surveillance a k a snooping on American citizens Specifically how a secret government court order demanded that Verizon VZ pass on details of millions of people s phone calls Snowden also gave insights into the National Security Agency s murky intelligence gathering system PRISM which has obtained people s personal data from tech companies He told The Guardian The government has granted itself power it is not entitled to There is no public oversight The result is people like me have the latitude to go further than they are allowed to My sole motive is to inform the public as to that which is done in their name and that which is done against them Mission emphatically accomplished Mr Snowden With the story blowing up our nation s bureaucracy is already busy doing damage control insisting that such surveillance methods are vital to America s national security They re emphatically claiming that all the federal dollars pouring into cyber security efforts are incredibly worthwhile I ll concede the feds this point They sure know how to spend money Cyber Spending Gone Mad It s no secret that high profile damaging cyber attacks against governments and corporations are rising In fact defense officials recently warned that cyber attacks now pose the greatest risk to U S national security Former Defense Secretary Leon Panetta says that a cyber attack perpetrated by nation states or violent extremist groups could be as destructive as the terrorist attack of 9 11 In response and totally lost among the Snowden headlines yesterday the Pentagon just announced a new cyber security budget It calls for 23 billion in spending through 2018 That includes cyber terrorism spending of 4 6 billion in the next fiscal year up 18 on the 3 9 billion allocated this fiscal year In fiscal 2015 the spending rises yet again to 4 7 billion Now according to the U S Cyber Command more attention will be directed this year toward cyber attacks from China and Iran Really Or is it going into more spying on the American public At the Forefront of National Security With the government allocating more money toward cyber security it bodes well for companies working to safeguard sensitive government and corporate data plus consumers personal details But some companies will fare better than others As I ve explained to our WSD Insiders the investment case is compelling for one particular company that s involved in a host of national security missions from establishing secure networks to managing intelligence Case in point Its sales recently spiked almost 50 and it expects similar growth for the rest of this year WSD Insiders are enjoying the ride too as the stock is up over 30 since the initial recommendation There s still plenty of room to run too |
VZ | SP 500 Earnings Expect 3 to 5 Growth In Q1 14 | Per Thomson Reuter s This Week in Earnings the forward 4 quarter earnings estimate for the S P 500 fell 0 16 last week to 118 65 from 118 81
The P E ratio on the forward estimate now 15 6 x which is slightly higher than what Factset says is the 10 year average P E of 13 8 x
The PEG ratio as of Friday 3 28 is now 2 57 x in line with where it has been over the last year In the 2nd quarter of 2013 the PEG s 2013 max value was 3 71 x and in December 13 the low print on our spreadsheet was 1 88 x for the year
The year over year growth rate of the forward estimate is now 6 09 down from last week s 6 12 and the prior week s 6 19 As readers know I would like to see that growing rather than contracting
Our Q4 13 S P 500 earnings growth estimate of 10 was a pretty decent prognostication the quarter looks like it will finish up at 9 9 y y earnings growth i e close enough for government work While 5 S P 500 growth would very good for Q1 14 I expect the quarter will be between 3 5
Difference between top down and bottoms up estimates
In our recent post on S P 500 operating EPS from March 17th 2014 we explained to readers what the difference was between top down and bottoms up EPS estimates for the S P 500 Ive struggled with this for years since I constantly have to remind myself that what we see and hear in the daily financial media is the top down estimate which from what I can tell through the years is the lower of the two numbers while once the quarter is reported and the numbers are clean the bottoms up estimate is locked and is the final number
The point we are trying to make is let s look at the top down and bottoms up estimate for 2013 and 2014 are currently just to give readers a feel for the real numbers
2013 top down S P 500 EPS estimate 108 85
2013 bottoms up S P 500 EPS estimate 109 69
2014 top down S P 500 estimate 117 37
2014 bottoms up S P 500 estimate 119 03
Source Thomson Reuters as of 3 28 14
Here is critical point that I think needs to be made about S P 500 earnings for 2014 when we get the quarterly bump on Tuesday April 1 my guess is that the final 2013 S P EPS actual number will be 110 or just above Versus the actual 2012 EPS of 103 80 the actual EPS percentage growth for 2013 will be 6 versus the 4 9 which is the 2013 actual versus the 2013 top down estimate of 108 85
My final point regarding this subject is that I fully expect 2014 final EPS to be 120 or greater but we wont get the final number until this time next year If we do 120 in EPS for the S P 500 in calendar 2014 that is 9 1 earnings growth for the year and will be the best rate of growth since 2011 s 15
Again the point to be made is that mixing bottoms up and top down gets a distorted view of earnings growth We have to compare apples to apples
To conclude S P 500 earnings and expected growth is NOT the problem with the market today While Q1 14 earnings growth of 2 per Thomson Reuters and 0 4 per Factset we will likely wind up in the 3 to 5 range by the time we get to June 30th or so even with the weather issues in Q1 14 While the big issue was weather in Q1 14 and we could see some pent up retail demand in q1 14 that was simply transferred from the first quarter quarterly earnings growth will likely gain strength through 2014
Q1 14 2 1 est
Q2 14 8 3 est and we will see normal erosion over next few months
Q3 14 11 est JP Morgan took huge charge in q3 13 thus Financials will lap easier comp s
Q4 14 11 2 4th quarters have been strongest of the year for earnings growth since 08
Bottom line expect 9 10 S P 500 earnings growth for 2014 However the S P 500 rose 32 in 2013 on what will likely be 8 earnings growth Market cap sectors selection style selection value vs growth all matter too in generating excess return for client accounts
Ranked from best to worst expected sector earnings growth for 2014
Telco 15 9 Could be distorted by Verizon Per Factset if Verizon NYSE VZ excluded from Telco sector for Q1 14 earnings growth falls from 23 8 to 2
Cons Disc 10 1 still a leadership sector
Financials 9 4 I expect much lower growth for Financial earnings in 2014 Q1 1 4 earnings will be significant in terms of loan loss releases
Basic Mat 9 2 our sleeper underdog sector for 2014
S P 500 8 6
Hlth Care 8 4 took a beating in Q1 14 thanks to biotech correction
Technology 8 4 we are split between growth and value tech
Energy 8 0 Barrron s article this weekend thinks we are headed to 75 oil
Industrials 7 8
Consumer Staples 6 5
Utilities 5 3
Source Thomson Reuters data as of 3 28 14
The sectors which have seen upward revisions to their 2014 earnings growth estimates since Jan 1 14 are Telco Health Care Utilities |
XOM | U S Senate advances nomination of Tillerson as Secretary of State | WASHINGTON Reuters The U S Senate advanced the nomination of former Exxon Mobil Corp N XOM Chief Executive Rex Tillerson on Monday to be President Donald Trump s secretary of state moving closer to filling a key seat on the Republican s national security team despite partisan rancor over Trump s immigration order The vote was 56 to 43 to move toward a final confirmation vote after up to 30 hours debate putting a final vote very early on Wednesday if senators do not agree to change the time The vote broke largely along party lines Every Republican favored advancing the nomination and all but four members of the Democratic caucus voted against it The Senate s Democratic leader Chuck Schumer and several other members of the party tried but failed to delay considering Tillerson because of Trump s executive order banning immigration from seven mostly Muslim countries and temporarily halting the entry of refugees They said they wanted to question Tillerson more closely on his views on Muslim immigration During his confirmation hearing the former oil executive said he did not support a blanket type rejection of any group of people Democrats said that statement seemed to contradict Trump s order Trump and his supporters including many Republicans said his order is necessary to keep Americans safe and is not intended to ban Muslims despite addressing only Muslim majority nations whose citizens have not been involved in attacks on the United States They said it was important to fill important slots on Trump s national security team quickly
As we proceed in ensuring the new administration has the leaders it needs to implement our nation s foreign policy going forward I have great confidence Rex Tillerson will serve the United States well Senator Bob Corker the Republican chairman of the Senate Foreign Relations Committee said |
XOM | Tillerson s job as chief U S diplomat got harder before it began | By Arshad Mohammed and Lesley Wroughton WASHINGTON Reuters Rex Tillerson s job as chief U S diplomat became harder before it even began because of White House moves that have antagonized Muslim nations European allies Mexico and U S bureaucrats current and former U S officials said The Senate is expected to confirm Tillerson as the 69th secretary of state on Wednesday making the former Exxon Mobil Corp NYSE XOM CEO the chief foreign affairs adviser to President Donald Trump Under any circumstance Tillerson would have inherited a messy globe with a civil war in Syria nuclear armed North Korea threatening to test an intercontinental ballistic missile and challenges from a rising China and an assertive Russia In the 12 days since Trump s inauguration however the White House has taken steps that foreign policy professionals view as self inflicted wounds We ve done a series of own goals said a senior U S official on condition of anonymity There are always mess ups and friction with new administrations That s not new This is worse than usual On Thursday Mexican President Enrique Pena Nieto took the rare step of cancelling a Washington trip to meet Trump who has repeatedly demanded Mexico pay for a wall on the U S border On Friday Trump signed an executive order imposing a four month hold on refugees entering the United States and a temporary bar on most travelers from seven Muslim majority countries Iran Iraq Libya Somalia Sudan Syria and Yemen The order has not only caused consternation for the nations involved but among other Muslim majority countries allies such as Germany and Britain and career State Department officials GET WITH THE PROGRAM About 900 department officials signed a memo dissenting from the policy a source familiar with the document said an unusual rebellion against a new president s policies As reports of the internal dissent spread on Monday White House spokesman Sean Spicer said career officials who disagreed should get with the program or they can go The result has been that two constituencies Tillerson has to manage foreign nations and the U S diplomatic corps have already got their noses out of joint before his swearing in He will start at a disadvantage and will have to play catch up to build trust with his foreign counterparts and with State Department employees said John Bellinger a State Department legal adviser under Republican President George W Bush Tillerson walks into a situation where he has got an unhappy and suspicious White House and he has an unhappy and suspicious workforce said another former State Department official who spoke on condition of anonymity It would have been difficult enough given the chaos Several current and former U S officials said they were dismayed by the process that led to the executive order with little evidence that there was broad consultation within the government let alone with Congress or foreign allies The secretary of homeland security John Kelly was reported to have been largely blindsided by the order According to the New York Times he was on a White House conference call getting his first full briefing on it when Trump signed the order Loren DeJonge Schulman a former national security council and Pentagon official said the belief that Trump did not bring his top advisers into the discussion of the matter would itself handicap the new secretary of state The secretary of state s power and his influence primarily derive from the idea that he speaks for the president said Schulman now at the Center for a New American Security think tank in Washington saying it was an open secret the White House may not be consulting cabinet officials on such matters
The fact that foreign audiences will realize that on day one is going to definitely weaken his hand she said |
XOM | U S Senate support for Trump education nominee weakens | By Lisa Lambert and Richard Cowan WASHINGTON Reuters Public refusals on Wednesday by two U S Senate Republicans to support Betsy DeVos President Donald Trump s pick for education secretary raised the possibility of a rare congressional rejection of a Cabinet nominee In an ominous sign for Trump Republican senators Susan Collins and Lisa Murkowski said they would not vote for DeVos a billionaire philanthropist and charter school advocate They would be the first Republicans to break party ranks and vote against one of Trump s cabinet selections Democrats uniformly opposed to DeVos are expected to oppose her as a block They would only need for three Republicans to side with them to make DeVos just the 10th cabinet nominee in U S history to be rejected by Congress Soon after Collins and Murkowski staked out their opposition to DeVos the White House said it is confident that she will ultimately be approved Nonetheless DeVos opponents kicked into high gear on Wednesday to press other Republican Senators to vote no when the chamber begins considering the nomination expected as early as Wednesday afternoon I cannot support this nominee Murkowski said in a floor speech saying she needed to make her intentions clear to her colleagues DeVos nomination barely squeaked through a Senate committee vote on Tuesday with both Collins and Murkowski saying they voted yes only so the entire Senate could debate the matter Trump s early nominations primarily for security posts had an easier time on Capitol Hill than names now before the Senate Republicans hold majorities in both the Senate and House of Representatives but Democrats have been on a blitz to try to block the nominations often raising concerns about conflicts of interest The party has to tread carefully about approving one nomination that of Alabama Senator Jeff Sessions for Attorney General Once Sessions who was confirmed by Senate Judiciary Committee on Tuesday becomes the country s top law enforcement officer he will have to vacate his seat and no longer be able to support Trump s nominees in the Senate On Wednesday the Senate Finance Committee had to suspend its rules to advance Treasury Secretary nominee Steve Mnuchin and Health Secretary nominee Tom Price to the full chamber for approval the final step in the confirmation process Committee Democrats on Tuesday had boycotted the vote forcing Republicans to scrap a requirement that at least one Democrat be present for a vote Confirmation hearings for Labor Secretary nominee Andy Puzder have been delayed over ethics filings
Meanwhile the Senate confirmed Rex Tillerson as secretary of state on Wednesday filling a key spot on the national security team despite concerns about the former Exxon Mobil Corp N XOM chief executive officer s ties to Russia |
XOM | Trump adopts aggressive posture toward Iran after missile launch | By Steve Holland and Matt Spetalnick WASHINGTON Reuters The White House put Iran on notice on Wednesday for test firing a ballistic missile and said it was reviewing how to respond taking an aggressive posture toward Tehran that could raise tensions in the region While the exact implications of the U S threat were unclear the new administration signaled that President Donald Trump intended to do more possibly including imposing new sanctions to curb what he sees as defiance of a nuclear deal negotiated in 2015 by then President Barack Obama The tough talk commits the administration to back up its rhetoric with action which could cast doubt on the future of the Iran agreement and sow further uncertainty in an already chaotic Middle East experts said Trump has frequently criticized the Iran nuclear deal calling the agreement weak and ineffective Officials declined to say whether the military option was on the table although Pentagon spokesman Christopher Sherwood said The U S military has not changed its posture in response to the Iranian test missile launch on Sunday A fiery statement from Trump s national security adviser Michael Flynn marked some of the most aggressive rhetoric by the administration that took office on Jan 20 making clear that Obama s less confrontational approach toward Iran was over Flynn said that instead of being thankful to the United States for the nuclear deal Iran is now feeling emboldened As of today we are officially putting Iran on notice he told reporters in his first appearance in the White House press briefing room He said the launch and an attack on Monday against a Saudi naval vessel by Iran allied Houthi militants off the coast of Yemen underscored Iran s destabilizing behavior across the Middle East Iran confirmed it had tested a new missile but said it did not breach a nuclear accord reached with world powers or a U N Security Council resolution that endorsed the pact HOW WOULD U S RESPOND Analysts said Iran could interpret Flynn s warning as bluster given that the Trump administration is still formulating a response It s a vague way of drawing a line in the sand said Mark Fitzpatrick executive director of the International Institute for Strategic Studies Americas Taken literally it could mean You do this one more time and you ll pay for it But how would the U S respond The warning could foreshadow more aggressive economic and diplomatic measures against Iran Three senior U S officials speaking on condition of anonymity said a range of options including economic sanctions was being considered and that a broad review was being conducted of the U S posture toward Iran One official said the intent of Flynn s message was to make clear the administration would not be shy or reticent toward Tehran We are in the process of evaluating the strategic options and the framework for how we want to approach these issues the official said We do not want to be premature or rash or take any action that would foreclose options or unnecessarily contribute to a negative response Our sincere hope is that the Iranians will heed this notice today and will change their behavior he said Iran has test fired several ballistic missiles since the nuclear deal in 2015 but the latest test was the first since Trump became president RISK OF MISCALCULATION The issue came to the forefront on the same day that the U S Senate confirmed former Exxon Mobil Corp NYSE XOM Chief Executive Rex Tillerson as secretary of state Trump told Tillerson at his swearing in ceremony that although you inherit enormous challenges in the Middle East and around the world I believe we can achieve peace and security in these very very troubled times Simon Henderson a Gulf expert at the Washington Institute for Near East Policy said there was a danger of a miscalculation by Washington or Tehran The question now is will the Iranian logic be My goodness this guy is serious we d better behave ourselves he said Or do they say Why don t we tweak him a bit more to see what he really means maybe test him The administration s tough statement came midway through a three day exercise by 18 U S French British and Australian warships and an undisclosed number of aircraft close to Iranian waters in the Gulf according to a statement by U S Central Command Trump is due to hold talks with Israeli Prime Minister Benjamin Netanyahu a strident critic of the Iran nuclear deal at the White House on February 15 The U S president and Saudi Arabia s ruler King Salman spoke by phone on Sunday and were described by the White House as agreeing on the importance of enforcing the deal and addressing Iran s destabilizing regional activities
Sunni Muslim dominated Saudi Arabia home to Mecca and other Islamic holy sites and Shi ite Muslim majority Iran are regional rivals |
XOM | U S Senate confirms Tillerson as secretary of state | By Patricia Zengerle WASHINGTON Reuters The U S Senate confirmed Rex Tillerson as President Donald Trump s secretary of state on Wednesday filling a key spot on the Republican s national security team despite concerns about the former Exxon Mobil Corp NYSE XOM chief executive officer s ties to Russia The vote mostly along party lines was by far the closest in at least half a century Fifty six senators backed Tillerson and 43 voted no Every Republican favored Tillerson along with four members of the Democratic caucus Senators Heidi Heitkamp Joe Manchin and Mark Warner as well as Angus King an independent Democratic Senator Chris Coons did not vote Tillerson s predecessor in the position John Kerry was confirmed by 94 to 3 Condoleezza Rice the last secretary of state nominated by a Republican was confirmed by 85 13 Senate Democrats had tried but failed to delay the vote on Tillerson because of Trump s executive order banning immigration from seven mostly Muslim countries and temporarily halting the entry of refugees They said they wanted to ask Tillerson more questions about the issue after Trump signed the order on Friday prompting protests and chaos at airports across the country and uncertainty and disruption for travelers around the world But Republicans hold a majority of 52 seats in the 100 member Senate and so far have confirmed all of the six Trump nominees who have come up for votes Senators had also expressed concerns over Tillerson s ties to Russia after the executive spent years there working for the oil company Some faulted him for failing to promise to recuse himself from matters related to Exxon Mobil businesses for his entire term as secretary of state rather than only the one year required by law Tillerson 64 retired as chairman and chief executive of Exxon Mobil at the end of 2016 after a four decade career at the company
Republicans and other Tillerson supporters said they thought he would be a strong leader as the country s top diplomat citing his experience running a giant corporation operating on six continents They also said it was important to finalize Trump s national security team quickly to address international crises and reassure allies wondering about the new president s America First foreign policy |
XOM | Is DFA Tax Managed US Marketwide Value II Fund DFMVX Worth Another Look | DFA Tax Managed US Marketwide Value II Fund a Zacks Rank 1 Strong Buy was incepted in December 1998 and is managed by Dimensional Fund Advisors Inc DFMVX seeks to achieve long term capital appreciation DFMVX invests in securities of US companies whose size market capitalization falls within the largest 95 of the market universe The market universe is comprised of companies listed on the New York Stock Exchange American Stock Exchange and NASDAQ National Market System DFMVX invests in value stocks and securities are considered value stocks primarily because a company s shares have a high book value in relation to their market value
This All Cap Value product as of the last filing allocates their fund in three major groups Large Value Foreign Bond and Small Growth Further as of the last filing Comcast Corporation NASDAQ CMCSA AT T NYSE T Inc and Exxon Mobil Corporation NYSE XOM were the top holdings for DFMVX
The DFA Tax Managed US Marketwide Value II fund managed by carries an expense ratio of 0 22 Moreover DFMVX requires a minimal initial investment of 0
DFMVX has a history of positive total returns for over 10 years Specifically the fund s returns over the 3 5 year benchmarks 3 year 8 75 and 5 year 13 03 To see how this fund performed compared in its category and other 1 and 2 Ranked Mutual Funds
DFMVX s performance as of the last filing when compared to funds in its category was in the top 40 in 1 year top 43 over the past 3 years and in the 11 over the past 5 years
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XOM | Exxon Oil Search To Buy 40 Stake In Gulf Of Papua Acreage | U S super major ExxonMobil Corporation NYSE XOM and Oil Search Ltd recently signed a deal with Gini Energy a company controlled by China s Cnooc Ltd NYSE CEO to acquire majority interest in two deepwater exploration acreages in the Gulf of Papua Under the terms Oil Search and ExxonMobil will purchase 40 stake each in two exploration licenses from Gini Energy ExxonMobil will become operator of the licenses while Gini Energy will retain 20 equity holding The two licenses namely PPL 373 and PPL 375 are situated roughly 150 kilometers south of Port Moresby They cover a combined 24 936 kilometers with water depths ranging from 1000 meters to 2500 meters According to a comprehensive study of exploration opportunities conducted by Oil Search in 2015 and 2016 offshore Gulf of Papua has been identified as an area with significant gas potential Hence Oil Search and ExxonMobil partnered with Gini Energy to acquire stakes in the region and cash in on the opportunities EXXON MOBIL CRP Price Irving TX based ExxonMobil is the world s largest publicly traded oil company engaged in oil and natural gas exploration and production petroleum products refining and marketing chemicals manufacture and other energy related businesses With an AAA credit profile and stable cash position ExxonMobil s balance sheet is one of the strongest in the industry However the company s integrated functions make it susceptible to risk from any weakness in global economy As a result ExxonMobil currently carries a Zacks Rank 3 Hold which implies that it will perform in line with the broader U S equity market over the next one to three months Some better ranked players from the broader energy sector include NGL Energy Partners LP NYSE NGL and Matador Resources Company NYSE MTDR Both these stocks sport a Zacks Rank 1 Strong Buy You can see Confidential from ZacksBeyond this Analyst Blog would you like to see Zacks best recommendations that are not available to the public Our Executive VP Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand |
PCG | PG E bondholders propose bankruptcy exit plan worth up to 30 bln | By Jim Christie SAN FRANCISCO Reuters A committee of bondholders of PG E Corp s utility unit on Tuesday proposed a bankruptcy reorganization plan that would inject up to 30 billion to help the California power provider emerge from Chapter 11 and pay off its liability from wildfires In a filing with the U S bankruptcy court in San Francisco the committee made up of senior unsecured noteholders of Pacific Gas Electric Co NYSE PCG also sought to terminate the utility s exclusive period for filing a Chapter 11 reorganization plan so the committee may file its own plan PG E has until Sept 29 to file a plan PG E has been too slow to file its own plan and the need to exit bankruptcy expeditiously is paramount the committee said in its filing adding its plan would provide up to 16 billion to compensate all of PG E s pre bankruptcy wildfire claims The committee s plan would be funded by 18 billion in cash from bondholders in exchange for new common shares in a reorganized company as well as 2 2 billion in insurance proceeds owed PG E for wildfire losses Bondholders would also provide 4 billion in cash in exchange for new unsecured notes and 5 5 billion would be raised by selling new secured notes to third party investors San Francisco based PG E sought Chapter 11 bankruptcy protection in January in the aftermath of devastating wildfires in Northern California in 2017 and 2018 that left the company anticipating 30 billion in liabilities blamed on its equipment The worst of the blazes November s Camp Fire leveled the town of Paradise and killed more than 80 people It was the deadliest and most destructive wildfire of modern times in California A spokesman said the committee had no additional comment on the plan beyond its filing A spokesman for PG E in an email to Reuters said the power provider is committed to working together with our stakeholders through the Chapter 11 process to fairly and expeditiously resolve our liabilities resulting from the 2017 and 2018 Northern California wildfires develop a more sustainable business model and continue delivering safe and reliable service The committee said in its filing that its reorganization plan will provide a substantial capital investment to fund improvements in PG E s electric infrastructure to ensure reliable power service and meet California s renewable energy goals The committee also said its plan will provide for a quick exit from bankruptcy for PG E that maintains an investment grade rating for the power provider The committee s filing did not identify unsecured noteholders that would participate in the plan but the largest stakeholders in the group include Pacific Investment Management Co LLC Elliott Management Corp and Davidson Kempner Capital Management According to the committee s filing terms of the plan will not affect PG E s ratepayers and will provide for a 4 billion contribution to a fund for insuring against utility related wildfire liabilities that California officials are considering establishing Governor Gavin Newsom last week proposed helping utilities create a fund of up to 21 billion to compensate future victims of wildfires sparked by the companies equipment or employees Approval from state lawmakers would be needed to create the fund |
PCG | PG E says it strongly disagrees delayed maintenance played role in Camp Fire | SAN FRANCISCO Reuters PG E Corp N PCG said in court papers on Wednesday that it strongly disagrees with a suggestion in a Wall Street Journal article that the company knowingly deferred maintenance on equipment that caused California s Camp Fire the deadliest and most destructive wildfire in California s modern history PG E filed the papers to answer an order by U S District Judge William Alsup demanding the power provider respond to the article which reported PG E did not upgrade parts of its electrical grid that it was aware could spark wildfires PG E strongly disagrees with the WSJ article s suggestion that PG E knew of the specific maintenance conditions that caused the Camp Fire and nonetheless deferred work that would have addressed those conditions the company said San Francisco based PG E said the article s implication that delayed planned maintenance that could have averted November s Camp Fire is based on a misunderstanding of that work on a transmission line and tower The purpose of that work was not to identify and fix worn or broken parts such as the hook on the transmission tower that failed and caused the Camp Fire to ignite PG E said Rather the purpose of that work was to address the clearance between transmission line conductors and from transmission line conductors to the ground PG E said PG E also said it denies the generalized assertion that it repeatedly failed to perform the necessary upgrades to prevent failures on its transmission lines A Wall Street Journal spokesman told Reuters by email the newspaper was reviewing PG E s court papers Alsup on July 10 demanded PG E give him a fresh forthright statement owning up to the true extent of the Wall Street Journal report published that day The article reported PG E delayed maintenance and improvements on aging power lines and towers in recent years According to the article PG E was aware in 2017 it needed to improve maintenance and replace equipment to avoid failures causing fires following a historic drought in California A failure of one PG E power line in November caused the Camp Fire which killed more than 80 people and destroyed the town of Paradise
Alsup is overseeing PG E s probation stemming from its conviction over a deadly 2010 natural gas pipeline explosion He has been pressing PG E for answers on its safety measures in response to massive wildfires in 2017 and 2018 that forced the company into bankruptcy in January in separate proceedings in U S Bankruptcy Court in San Francisco |
PCG | PG E shareholders outline possible 15 billion rights issue | Reuters PG E Corp N PCG shareholders are proposing raising 15 billion in equity to fund a planned reorganization of the power producer facing huge liabilities from California wildfires according to a company filing on Thursday The proposed fundraising a rights offering of selling new shares is the latest effort to rescue PG E which sought Chapter 11 bankruptcy protection earlier this year after severe wildfires in 2017 and 2018 resulted in more than 30 billion in liabilities The California utility currently has the sole right to put forward a reorganization plan although other investors have asked a judge to allow them to do so as well Hedge funds Knighthead Capital Management and Abrams Capital Management the shareholders that made the proposal in a letter to PG E pledged to purchase a portion of the offered equity if shares are left unsold through a so called backstop commitment the filing showed PG E is currently working its way through a complicated restructuring process As a result of significant wildfire liabilities and related capital obligations the company faces a material need for new funding the two hedge funds said in the filing Together they own about 7 3 of PG E according to Refinitiv data In May state fire investigators determined that PG E transmission lines caused the deadliest and most destructive wildfire on record in California a blaze that killed 85 people last year Nearly 19 000 homes and other structures were destroyed The death toll stands as the greatest loss of life from a single wildfire in California history
The proposed term sheet for the backstop commitment plan contemplates that all subrogation claims and wildfire claims shall not exceed 16 billion in the aggregate according to the filing |
XOM | McCain warns Trump not to lift sanctions on Russia | WASHINGTON Reuters U S Senator John McCain commenting on Friday on speculation that President Donald Trump may lift sanctions on Russia said he hoped the administration would reject that reckless course If he does not I will work with my colleagues to codify sanctions against Russia into law McCain chairman of the Senate Armed Services Committee and one of the Republican party s senior foreign policy voices said in a statement A decision by Trump to ease sanctions imposed on Moscow over its annexation of Ukraine s Crimea region could complicate efforts to win Senate confirmation of Rex Tillerson Trump s nominee for secretary of state Tillerson worked with Russia s government for years as a top executive at the energy giant Exxon Mobil NYSE XOM and has questioned the wisdom of sanctions against Russia that he said could harm U S businesses In 2013 Putin awarded Tillerson an Order of Friendship award for his work in Russia Tillerson had engineered a joint venture with Russian oil companies estimated to be worth many billions of dollars Many senators mostly Democrats but also Republicans such as McCain Lindsey Graham and Marco Rubio have expressed concerns about Tillerson becoming secretary of state because of his ties to Russia However all three announced this week that they would support Tillerson virtually ensuring he would become the top diplomat A reversal by Trump of sanctions could turn lawmakers against him |
XOM | As Trump shifts immigration and foreign policies State Department is silent | By Yeganeh Torbati WASHINGTON Reuters The U S State Department will not conduct its regular daily press briefing until a new secretary of state is confirmed leaving the main U S agency responsible for dealing with the rest of the world silent amid the uproar over President Donald Trump s executive order on immigration Trump on Friday announced a four month hold on allowing refugees into the United States and a temporary bar on travelers from seven Muslim majority countries The decision provoked a widespread backlash in foreign capitals documented in cables U S embassies sent to Washington Typically in the aftermath of a major foreign policy shift a State Department spokesperson would appear on camera within days to take questions from reporters and defend or explain the U S positions on different issues The State Department has not briefed since the day before Trump s Jan 20 inauguration however and on Monday a department spokesperson said no one will appear at the podium until the U S Senate confirms a new secretary of state At that point we will update the press corps on our posture the spokesperson said Trump s desire to break with previous U S policies on issues including Israel s construction of settlements U S trade pacts and cooperation with Russia suggests that State Department officials have not been given guidance on what positions they should articulate Until you know what policy you re advancing it doesn t do you any good to get out there said Richard Boucher a former State Department spokesman who briefed reporters on the first weekday of the George W Bush administration in January 2001 The decision not to brief is a simple admission that they don t know what to say The Senate is due to vote on Monday on moving forward on confirming Rex Tillerson the former Exxon Mobil Corp NYSE XOM executive whom Trump has tapped to lead the State Department If as expected the Senate votes to advance his nomination a final confirmation vote would most likely take place late on Tuesday The lack of briefings this far into a new administration is a departure from the three previous inter party transitions In 1993 2001 and 2009 State Department spokespeople briefed reporters no later than Jan 23 according to briefing transcripts stored in online archives
In those three transitions the new secretary of state was confirmed on or just after Jan 20 |
XOM | Republicans take first steps to kill Obama era regulations | By Lisa Lambert WASHINGTON Reuters Republicans on Monday continued their drive to loosen U S regulation taking the first step to kill five Obama era rules on corruption the environment labor and guns under the virtually untested Congressional Review Act The House Rules Committee sent to the full chamber three regulations enacted under former President Barack Obama a Democrat to ax They were the Stream Protection Rule the Securities and Exchange Commission s resource extraction rule and one on gun buying Republicans put as much urgency on limiting what they consider over regulation that stifles economic growth as they do on overhauling the tax code and dismantling the Affordable Care Act according to House Majority Leader Kevin McCarthy This is the first time the Republican led House of Representatives has targeted specific rules since convening on Jan 3 Earlier this month it passed bills to limit regulatory agencies and Republican President Donald Trump is cutting regulation through executive orders Under the law Congress can use simple majority votes to stop recent regulations in their tracks Agencies cannot create a new rule to replace any part of an overturned regulation Timing in the law means any rules enacted in the final months of Obama s administration are eligible for axing The law has been used effectively only once in 2001 Both sides consider this week a test of its powers On Tuesday the Rules Committee will send two more regulations to the full chamber which is expected to vote to kill all five on Wednesday and then hand them off to the Senate Senate Republicans on Monday prepared to act quickly after the House vote with Majority Leader Mitch McConnell and Environment Committee Chairman James Inhofe introducing companion measures on the stream and extraction rules The Interior Department took years to craft the stream rule hoping to prevent coal mining waste from contaminating water sources in areas near mountain top removal mining sites Critics say it is unnecessary and goes too far wiping out jobs and usurping state rights The extraction rule is required in the 2010 Dodd Frank Wall Street reform law but was only approved six years later this summer It requires companies such as Exxon Mobil Corp N XOM to state publicly how much they pay governments in taxes and other fees Opponents say it hurts U S energy companies while human rights groups argue it reduces corruption Meanwhile the gun rule requires extra scrutiny of purchasers who receive Social Security benefits and also have a history of mental illness Liberal groups are outraged by the rollbacks but their traditional allies Democratic lawmakers have limited means to stop them in the Republican dominated Congress Those on the Rules Committee said important protections were being rushed to the chopping block and pleaded for hearings on the regulations to no avail
This week House Democrats and activists are planning to rally the public hoping to persuade Republicans to vote no Senate Democrats cannot filibuster the measures but congressional aides expect them to slow the process by taking the full five hours they are allowed to speak against each measure on the chamber s floor |
XOM | Exxon Q4 earnings fall to 1 68 bn on 2bn impairment charge | Investing com NYSE Exxon Mobil fourth quarter earnings missed estimates as the oil firm took a charge Exxon Q4 profit was down 40 YoY at 1 68 bn on an upstream asset impairment charge of 2 bn Without the charge earnings were higher than in the fourth quarter of 2015 Diluted Q4 EPS came in at 0 41 against an estimate of 0 70 Revenues in the quarter also missed estimates at 61 02 bn vs 70 24 bn Full year earnings fell 51 from a year earlier to 7 84 bn on lower commodity prices refining margins |
XOM | How Is DFA US Large Cap Value III Fund DFUVX Performing | DFA US Large Cap Value III a Zacks Rank 1 Strong Buy was incepted in February 1995 and is managed by Dimensional Fund Advisors Inc DFUVX seeks long term capital appreciation DFUVX invests in securities of US companies whose size market capitalization falls within the largest 90 of the market universe The market universe is comprised of companies listed on the New York Stock Exchange American Stock Exchange and NASDAQ National Market System DFUVX invests in value stocks and securities are considered value stocks primarily because a company s shares have a high book value in relation to their market value
This Large Value fund as of the last filing allocates their fund in three major groups Large Value Small Growth and Precious Metal Further as of the last filing AT T NYSE T Inc Exxon Mobil Corporation NYSE XOM and Comcast Corporation NASDAQ CMCSA were the top holdings for DFUVX
DFA US Large Cap Value III managed by carries an expense ratio of 0 13 Moreover DFUVX requires a minimal initial investment of 0
DFUVX has a history of positive total returns for over 10 years Specifically the fund s returns over the 1 3 5 year benchmarks 1 year 3 03 3 year 8 81 and 5 year 13 04 To see how this fund performed compared in its category and other 1 and 2 Ranked Mutual Funds
DFUVX s performance as of the last filing when compared to funds in its category was in the top 22 in 1 year top 43 over the past 3 years and in the 11 over the past 5 years
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XOM | The Zacks Analyst Blog Highlights BP Diamond Offshore Drilling Petrobras Statoil ASA And Matrix Service | For Immediate Release
Chicago IL September 07 2016 Zacks com announces the list of stocks featured in the Analyst Blog Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets Stocks recently featured in the blog include BP plc LON BP Diamond Offshore Drilling Inc NYSE DO Petrobras Statoil OL STL ASA and Matrix Service Co
Today Zacks is promoting its Buy stock recommendations
Here are highlights from Tuesday s Analyst Blog
Oil Gas Stock Roundup
It was a week where both oil and gas prices finished sharply lower
On the news front BP plc announced a second strategic partnership with China s state owned energy company CNPC for shale gas exploration while Diamond Offshore Drilling Inc said its contract for the semisubmersible Ocean Valor was canceled more than two years early
Overall it was a dismal week for the sector West Texas Intermediate WTI crude futures dived 6 7 to close at 44 44 per barrel while natural gas prices ended down 4 2 to 2 792 per million Btu MMBtu See the last Oil Gas Stock Roundup here
Oil prices sank to its second weekly loss in a row after the U S Energy Department s inventory release showed that crude stockpiles recorded a much larger than anticipated build thus remaining at record high levels for this time of year The commodity also suffered from a strong dollar that made the greenback priced crude expensive for investors holding foreign currency
Natural gas fared badly too following a higher than expected increase in supplies It was also dragged down by expectations of tepid heating demand with the imminent arrival of colder autumn temperatures
Recap of the Week s Most Important Stories
1 British energy giant BP plc announced that it has inked a production sharing contract PSC with China National Petroleum Corporation CNPC for shale gas exploration development and production The PSC pertains to an acreage of about 1 000 square kilometers at Rong Chang Bei in the Sichuan Basin CNPC will operate the block
This is the second contract between BP and the Chinese state owned firm The first PSC was signed in Mar 2016 and related to the adjoining Neijiang Dazu block The companies had also entered into a framework agreement on strategic cooperation in Oct 2015
The latest PSC emphasizes BP s commitment to explore and develop unconventional resources in China The framework agreement includes potential future fuel retailing ventures in China promising new oil and LNG trading opportunities globally and carbon emissions trading as well as knowledge sharing around low carbon energy and management practices Read more
2 Houston based driller Diamond Offshore Drilling Inc reported that Brazil s Petrobras has canceled a rig contract Investors soured on shares in Diamond Offshore following the news and the stock fell almost 11 to 16 51on Thursday Petrobras opted to terminate the contract for the semisubmersible Ocean Valor The drillship was contracted through October 2018 at a dayrate of around 455 000
This is another sign that the collapse in crude prices that began in mid 2014 amid a glut of supply and slowing demand for the commodity has affected the offshore drillers badly as oil companies cut back their capital spending
3 Norwegian oil giant Statoil ASA has inked a Memorandum of Understanding MoU with Brazil s state run energy behemoth Petrobras in order to strengthen their ties in the South American country The MoU was signed by the two parties during the ONS 2016 conference in Stavanger
The purpose of the MoU is to assess joint participation in the future tenders for exploration areas and to enhance upstream cooperation in producing fields in the Santos and Campos offshore basins Moreover the agreement outlined a prospective framework for collaboration on value creating opportunities in the gas value chain
The companies objective is to capture value through use of technology and simplification of operational activities Currently Petrobras and Statoil are partners in 13 blocks in either exploration or production 10 in Brazil and three elsewhere Read more
4 The challenging operating environment notwithstanding energy engineering services provider Matrix Service Co reported strong fiscal fourth quarter numbers While sales and earnings declined from the year ago period due to low commodity prices both results exceeded expectations The outperformance came on the back of heightened activity on a power plant project and storage terminals related to an oil pipeline
The company which shelled out some 10 5 million to repurchase more than 650 000 shares in fiscal 2016 also managed to lower its SG A expenses 11 year over year to 19 6 million in the most recent quarter As of Jun 30 2016 Matrix Service s total backlog stood at 868 7 million
For fiscal 2017 the company is guiding for EPS of 1 10 1 40 on revenue of 1 3 billion to 1 45 billion up from this fiscal year s 1 07 driven by a number of under construction projects and the expected receipt of additional awards
5 Brazil s troubled state run energy giant Petrobras announced that its voluntary layoff program which came to an end on Aug 31 has been accepted by 11 704 employees
In Apr 2016 the Rio de Janeiro based oil producer had launched this program to lay off 21 of its staff or around 12 000 workers between 2016 and 2020 This voluntary retrenchment program was in line with the company s plan to cut costs reduce its debt level and strengthen its balance sheet
Petrobras expects this program to cost around 4 billion reals 1 23 billion and generate savings up to 33 billion reais through 2020 The company has already set aside an amount of 1 2 billion reals in the second quarter to provide for the expenses Read more
Today Zacks is promoting its Buy stock recommendations
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Past performance is no guarantee of future results Inherent in any investment is the potential for loss This material is being provided for informational purposes only and nothing herein constitutes investment legal accounting or tax advice or a recommendation to buy sell or hold a security No recommendation or advice is being given as to whether any investment is suitable for a particular investor It should not be assumed that any investments in securities companies sectors or markets identified and described were or will be profitable All information is current as of the date of herein and is subject to change without notice Any views or opinions expressed may not reflect those of the firm as a whole Zacks Investment Research does not engage in investment banking market making or asset management activities of any securities These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs These are not the returns of actual portfolios of stocks The S P 500 is an unmanaged index Visit for information about the performance numbers displayed in this press release |
XOM | Senate panel clears Tillerson s path to be secretary of state | By Patricia Zengerle WASHINGTON Reuters U S President Donald Trump s choice for secretary of state former Exxon Mobil Corp N XOM Chairman Rex Tillerson narrowly won approval from a Senate committee on Monday but is expected to be confirmed by the full Senate The Senate Foreign Relations Committee voted 11 10 to approve Tillerson with every Republican backing the former oil executive and every Democrat opposing him His approval by the panel a victory for Trump had been in doubt until earlier on Monday when Senator Marco Rubio a committee member who had been Tillerson s most vocal Republican critic said he would back the nominee Tillerson s confirmation by the 100 member Senate where Republicans hold 52 seats is not expected before next week Democrats want more time to debate and the chamber may not be in session all this week Rubio s backing had been in doubt after his tough questioning during Tillerson s confirmation hearing focusing on issues including concerns about Tillerson s support for human rights Rubio ultimately decided he would approve the nominee in deference to Trump as well as to fill a critical top job Democrats said they voted against Tillerson over fears he might lift sanctions on Russia where he did business for years questions about his views on human rights and his refusal to recuse himself from matters related to his former employer during his entire term as the top U S diplomat Tillerson pledged to recuse himself only for the year required by law Amid Democratic anger over allegations that Russia interfered in the 2016 presidential election Tillerson also raised committee hackles by saying he did not know Exxon Mobil lobbied against sanctions on Russia while he was running the company Senator Ben Cardin the committee s top Democrat said Tillerson s business orientation and responses at his hearing could compromise his ability as secretary of state to forcefully promote the values and ideals that have defined our country and our leading role in the world for more than 200 years The Senate confirmed only two of Trump s Cabinet nominees on Friday his Inauguration Day a relatively low number among recent presidencies Democrats have been unable to block any of his choices because they changed Senate rules in 2013 to allow nominees to be confirmed with just a majority not 60 votes Instead they have used Senate rules to slow the confirmation of nominees they say hold extreme views are unqualified or have not completed ethics disclosures |
XOM | China says will protect South China Sea sovereignty | By Ben Blanchard and David Brunnstrom BEIJING WASHINGTON Reuters China said on Tuesday it had irrefutable sovereignty over disputed islands in the South China Sea after the White House vowed to defend international territories in the strategic waterway White House spokesman Sean Spicer in his comments on Monday signaled a sharp departure from years of cautious U S handling of China s assertive pursuit of territorial claims in Asia The U S is going to make sure that we protect our interests there Spicer said when asked if Trump agreed with comments by his secretary of state nominee Rex Tillerson On Jan 11 Tillerson said China should not be allowed access to islands it has built in the contested South China Sea It s a question of if those islands are in fact in international waters and not part of China proper then yeah we re going to make sure that we defend international territories from being taken over by one country Spicer said Chinese Foreign Ministry spokeswoman Hua Chunying told a regular news briefing on Tuesday the United States is not a party to the South China Sea dispute China claims most of the South China Sea while Taiwan Malaysia Vietnam the Philippines and Brunei claims parts of the sea that commands strategic sealanes and has rich fishing grounds along with oil and gas deposits China s sovereignty over the Spratly Islands in the South China Sea was irrefutable Hua said But China was also dedicated to protecting freedom of navigation and wants talks with nations directly involved to find a peaceful solution We urge the United States to respect the facts speak and act cautiously to avoid harming the peace and stability of the South China Sea Hua said Our actions in the South China Sea are reasonable and fair No matter what changes happen in other countries what they say or what they want to do China s resolve to protect its sovereignty and maritime rights in the South China Sea will not change she added BAR ACCESS TO ISLANDS Tillerson s remarks at his Senate confirmation hearing prompted Chinese state media to say at the time that the United States would need to wage war to bar China s access to the islands where it has built military length air strips and installed weapons systems Tillerson was asked at the hearing whether he supported a more aggressive posture toward China and said We re going to have to send China a clear signal that first the island building stops and second your access to those islands also is not going to be allowed The former Exxon Mobil Corp N XOM chairman and chief executive did not elaborate on what might be done to deny China access to the islands But analysts said his comments like those of Spicer suggested the possibility of U S military action or even a naval blockade Such action would risk an armed confrontation with China an increasingly formidable nuclear armed military power It is also the world s second largest economy and the target of Trump accusations it is stealing American jobs Spicer declined to elaborate when asked how the United States could enforce such a move against China except to say I think as we develop further we ll have more information on it Tillerson narrowly won approval from a Senate committee on Monday and is expected to win confirmation from the full Senate RISK OF DANGEROUS ESCALATION Military experts said that while the U S Navy has extensive capabilities in Asia to stage blockading operations with ships submarines and planes any such move against China s growing naval fleets would risk a dangerous escalation Aides have said that Trump plans a major naval build up in East Asia to counter China s rise China s foreign ministry said earlier this month it could not guess what Tillerson meant by his remarks which came after Trump questioned Washington s longstanding and highly sensitive one China policy over Taiwan Washington based South China Sea expert Mira Rapp Hooper at the Center for a New American Security called the threats to bar China s access in the South China Sea incredible and said it had no basis in international law A blockade which is what would be required to actually bar access is an act of war she added The Trump administration has begun to draw red lines in Asia that they will almost certainly not be able to uphold but they may nonetheless be very destabilizing to the relationship with China invite crises and convince the rest of the world that the United States is an unreliable partner Bonnie Glaser at the Center for Strategic and International Studies think tank called Spicer s remarks worrisome and said the new administration was sending confusing and conflicting messages Dean Cheng a China expert at the conservative Heritage Foundation said Spicer s remarks showed the South China Sea was an important issue for the Trump administration He said it was significant that neither Spicer nor Tillerson had been specific as to what actions would be taken and this left open the possibility that economic measures instead of military steps could be used against China and firms that carry out island building
Clarifies paragraph 4 attribution |
XOM | U S Senate panel advances Ross Chao nominations on voice vote | By David Lawder WASHINGTON Reuters A U S Senate committee swiftly approved Republican President Donald Trump s nominees for commerce and transportation secretaries by voice vote on Tuesday signaling that they will face little resistance to approval by the full Senate Members of the Senate Commerce Science and Transportation Committee voiced no objections to the nominations of billionaire investor Wilbur Ross 79 as commerce secretary and veteran government administrator Elaine Chao 63 as transportation secretary Republicans control the Commerce committee by a single vote The single voice vote for the two nominees marked a stark contrast from Monday s 11 10 vote by the Senate Foreign Relations committee to advance the nomination of former Exxon NYSE XOM Chief Executive Officer Rex Tillerson to be secretary of state All Democrats on that panel voted against Tillerson Ross a corporate turnaround expert who made his fortune investing in distressed steel textile auto parts companies and banks is expected to take a lead role in shaping Trump s trade policies These are aimed at protecting U S manufacturers from imports renegotiating the North American Free Trade Agreement NAFTA and pursuing bilateral trade deals after Trump signed an order on Monday to cancel the 12 country Trans Pacific Partnership trade deal
Chao would play a key role in Trump s plan to significantly raise government spending on U S infrastructure including roads and bridges an initiative that has strong support from Democrats and many Republicans |
XOM | Tillerson gets first briefings at State Department spokesman | WASHINGTON Reuters U S Secretary of State designate Rex Tillerson visited the State Department on Tuesday for briefings a spokesman said a day after the former oil executive narrowly won approval from a Senate committee Secretary designate Tillerson visited the State Department today for briefings the State Department spokesman said without elaborating It was Tillerson s first meetings at the State Department since U S President Donald Trump named him as his choice for secretary of state
The Senate Foreign Relations Committee voted 11 10 on Monday to approve Tillerson a former Exxon Mobil Corp NYSE XOM chairman |
XOM | U S Senate confirms Haley as Trump s U N ambassador | By Patricia Zengerle WASHINGTON Reuters The U S Senate voted almost unanimously on Tuesday to confirm South Carolina Governor Nikki Haley as ambassador to the United Nations sending a rising Republican star to represent President Donald Trump at an institution he has criticized Haley was backed by 96 senators with only four opposed She impressed lawmakers during her confirmation hearing this month Haley 45 promised to press for U N reforms but also fight for human rights and support international institutions often breaking from Trump s positions American values that we all hold dear and want to promote around the world are things that she has the ability to communicate and cares deeply about said Senate Foreign Relations Committee Chairman Bob Corker The No votes came from Democratic Senators Tom Udall Chris Coons and Martin Heinrich and Senator Bernie Sanders an independent who caucuses with Democrats Like many Americans and many of our allies I am concerned about President Trump s erratic statements and positions on foreign policy and that concern is only deepened by the fact that his nominee to be ambassador to the United Nations has no real diplomatic experience Udall said Haley has only held office in the state where she has been governor since 2011 The daughter of immigrants from India Haley attracted national attention in 2015 when she secured the removal of the Confederate battle flag from South Carolina s capitol grounds after a white supremacist killed nine black churchgoers in Charleston She did not endorse Trump during last year s presidential primaries and has warned that some of his most inflammatory statements promoted hate During her confirmation hearing Haley seconded criticism of the 193 nation organization by Trump and many of their fellow Republicans She called for a close look at U S spending on the United Nations and blasted what she called its bias against Israel Washington provides 22 percent of the U N budget The United States and its frequent rivals Russia and China all hold permanent seats on the U N Security Council along with U S allies Britain and France Haley won plaudits at her hearing for promising to stand up to Russia and agreeing that its actions including bombing hospitals in Syria should be considered war crimes FOURTH CONFIRMED CABINET MEMBER Haley was easily approved earlier on Tuesday by the 21 member Foreign Relations Committee Haley is only the fourth confirmed member of Trump s Cabinet joining Defense Secretary James Mattis Homeland Security Secretary John Kelly and Central Intelligence Agency Director Mike Pompeo Unusually Trump s pick for secretary of state was not confirmed before his U N ambassador His choice former Exxon Mobil NYSE XOM Chief Executive Rex Tillerson faced unanimous opposition from the 10 Foreign Relations Committee Democrats after a confirmation hearing at which they said he seemed poorly prepared The full Republican led Senate is expected to confirm Tillerson early next week
Haley is due to be sworn in on Wednesday She is being succeeded as South Carolina s governor by Republican Lieutenant Governor Henry McMaster |
XOM | Exxon names environmentalist to board of directors | HOUSTON Reuters Exxon Mobil Corp NYSE XOM the world s largest publicly traded oil producer named an environmentalist to its board of directors on Wednesday The company named Susan Avery the former head of the Woods Hole Oceanographic Institution and a former professor at the University of Colorado Boulder to its board effective Feb 1 Exxon has come under repeated attack in the past year from environmental groups who claim the company hid research on climate change from the public |
XOM | BP replaces Total as Renault F1 fuel partner | LONDON Reuters BP LON BP and its Castrol brand will replace French oil company Total as the Renault PA RENA Formula One team s official fuel and lubricant supplier this season both sides said on Thursday The two companies last worked together in 1997 when the then world champions Williams had Renault engines and BP sponsorship With the new aerodynamic regulations for the 2017 Formula One season power sensitivity will increase said Renault Sport managing director Cyril Abiteboul Therefore fuels and lubricants will make an even greater difference to the overall performance of the car than they have since the new power unit regulations have been introduced in 2014 Renault champions in 2005 and 2006 with Spaniard Fernando Alonso sold their factory team in 2010 but returned as constructors last year after buying it back from Lotus They finished ninth of 11 teams with only eight points but are hoping to make significant progress with an improved engine and German driver Nico Hulkenberg drafted in alongside Britain s Jolyon Palmer The fuel supply announcement had been expected and continues a shake up that started in December when ExxonMobil NYSE XOM ended a 21 year partnership with McLaren and switched to Red Bull who use Renault engines with Tag Heuer branding Former world champions Red Bull were also previously fueled by Total Honda powered McLaren have yet to announce their new fuel supplier but are also expected to do a deal with BP Mercedes are partnered with Petronas while Ferrari NYSE RACE have been with Shell LON RDSa for decades |
XOM | Several senior State Department officials leave posts officials | WASHINGTON Reuters The Trump administration has accepted the resignations of two top State Department officials effective on Friday a step entirely within the new president s rights but an abrupt departure for the diplomats officials said on Thursday Under Secretary for Management Patrick Kennedy and acting Under Secretary of State for Arms Control and International Security Thomas Countryman both plan to leave their posts by Friday the officials said Turnover is the rule rather than the exception among the top officials in the U S government when the White House changes hands from one party to another in this case from Democrat Barack Obama to Republican Donald Trump In his first week in office Trump has illustrated stark policy differences from Obama on trade and immigration On Monday Trump formally withdrew the United States from the Trans Pacific Partnership trade deal and on Wednesday he ordered construction of a wall on the border with Mexico and threatened to punish U S cities shielding illegal immigrants Political appointees chosen by the president and confirmed by the Senate were obliged as usual after Trump s Nov 8 election victory to submit letters of resignation to give the new president the opportunity to name his own people to the jobs Kennedy and Countryman were recently told their resignations had been accepted effective Friday leaving their bureaus one of which handles the department s management and the other which oversees arms control in the hands of more junior officials Gregory Starr Assistant Secretary for State for Diplomatic Security and Michele Bond Assistant Secretary for Consular Affairs are also leaving officials said though it was not clear under what circumstances or whether they were asked to step down by Friday Trump s nominee for Secretary of State former Exxon Mobil Corp NYSE XOM chairman Rex Tillerson has yet to be confirmed by the full Senate leaving the agency in the hands of number three official Under Secretary of State for Political Affairs Thomas Shannon The departures were discussed at State Department Thursday morning meetings and caused some unease in part because at least two of the officials had been asked to go by Friday It s not two weeks notice said one official who spoke on condition of anonymity However the department itself stressed that turnover is the norm when a new political party comes to power Of the officers whose resignations were accepted some will continue in the Foreign Service in other positions and others will retire by choice or because they have exceeded the time limits of their grade in service acting State Department spokesman Mark Toner said in a statement It did not provide a detailed breakdown of whose resignations were accepted or when they were leaving At least one media report suggested that the departures amounted to a mass resignation but several U S officials said this was not the case It s not a mass protest or a show of indignation said one senior U S official A former senior Obama administration official said there were no plans at the National Security Council for a mass resignation and that recent conversations there with Trump s inner circle had been viewed as productive and encouraging The State Department departures amounted to a huge brain drain the former official said adding that their collective experience would be difficult to recover However a current State Department official rejected this view saying that while Kennedy in particular was seen as an institution he could certainly be replaced Everybody is acting like it is a big apocalypse He has large shoes to fill but the culture of the State Department is about change and moving around every few years said the official It s not like the building is going to fall apart |
XOM | Super Bowl glare fixes attention on Texas bathroom bill | By Jon Herskovitz AUSTIN Texas Reuters As Houston readies to host the Super Bowl a push by lawmakers in Texas to restrict bathroom access for transgender people is raising fears the state may be unable to score future major sporting events and could lose championships on its books The proposed measure is similar to one enacted last year in North Carolina that prompted the National Basketball Association to pull its showcase 2017 All Star game from Charlotte while the National Collegiate Athletic Association moved seven championship events amid economic boycotts estimated to have cost hundreds of millions of dollars The financial hit in Texas whose economy is bigger than Russia s and boasts one of the nation s largest travel and tourism industries is forecast to be much bigger Influential business officials and activists say the legislation could also hurt the state s ability to attract investment and is at odds with the progressive tradition of its biggest cities The cost of the so called bathroom bill which bars transgender people from using restrooms that match their gender identity could run as high as 8 5 billion and result in a loss of 185 000 jobs in the first year alone according to the Texas Association of Business a conservative group that is the state s leading employer organization It would be a blot on the reputation of the state of Texas which many of us have been working to change said Annise Parker who as Houston s mayor from 2010 to 2016 was the first openly lesbian candidate elected to lead a major U S city Parker who served as mayor when Houston won hosting duties for Super Bowl LI to be played on Feb 5 said by just filing the measure which opponents decry as discriminatory there has been damage to the image of the state that serves as headquarters for more than 50 Fortune 500 companies ranging from Exxon Mobil NYSE XOM to grocer Whole Foods Texas has several upcoming marquee sporting events that could be at risk if the bathroom bill known as the Privacy Protection Act or Senate Bill 6 is approved The legislation s outcome is unlikely to be decided before the NCAA women s Final Four basketball championship is held in Dallas this spring But it could affect the NCAA men s Final Four basketball championship in San Antonio next year The NCAA declined to comment That event s economic impact in the San Antonio area is estimated to be 135 million according to economist Steve Nivin at St Mary s University in San Antonio Other estimates run as high as 234 million The Super Bowl is expected to bring the Houston area a net economic benefit of around 350 million according to the Host Committee ECONOMIC DOOM Visit San Antonio the city s independent convention and visitors organization said the bill is bad for business Visit San Antonio is actively working with our state and regional travel and industry partners to oppose SB 6 and any other legislation that could cause San Antonio and Texas to be less competitive and welcoming Casandra Matej the group s executive director told Reuters The Big 12 Conference which in December plans to hold its football championship game in Arlington at the stadium used by the Dallas Cowboys said in a statement it was tracking the legislation and would at an appropriate time discuss its impact with our member institutions Under the measure local governments would not be able to adopt ordinances dictating bathroom and locker room policies for businesses Local governments also would be forbidden from considering those policies when awarding contracts Texas Lieutenant Governor Dan Patrick a Tea Party Republican has said the bathroom bill is a common sense measure that protects against sexual predators and is a top legislative priority He dismisses concern over any economic fallout You have heard predictions of economic doom if we pass this bill he told a news conference in January It is just more talk from the opponents who have nothing else to say The bill is likely to pass the Republican controlled Texas Senate but its fate in the House of Representatives is uncertain Speaker Joe Straus a Republican who drives the agenda in that body has shown tepid support saying there are worries in his San Antonio district about what would happen to the 2018 Final Four if the bill becomes law
We should be very careful about doing something that could make Texas less competitive for investments jobs and the highly skilled workforce needed to compete Straus said in a speech this month |
CSCO | Cisco Systems CSCO Posts Earnings Beat Shares Slide On Weak Guidance | Cisco Systems Inc NASDAQ CSCO just released its third quarter fiscal 2017 financial results posting earnings of 60 cents per share and revenues of 11 9 billion Currently CSCO is a 4 Sell on the Zacks Rank and is down 5 38 to 32 01 per share in trading shortly after its earnings report was released
Cisco
Beat earnings estimates The company reported non GAAP earnings of 60 cents per share topping the Zacks Consensus Estimate of 53 cents per share This number excludes 10 cents from non recurring items
Beat revenue estimates The company saw revenues of 11 9 billion just edging past our consensus estimate of 11 88 billion but decreasing 1 year over year Product revenue performance was led by Wireless and Security which increased by 13 and 9 respectively
Non GAAP total gross margin and product gross margin were 64 4 and 63 2 respectively This was a decrease from the prior year period primarily due to pricing and product mix that was partially offset by continued productivity improvements
Looking ahead to Q4 Cisco expects revenues to decline 6 to 4 year over year with non GAAP earnings per share in the range of 60 cents to 62 cents
I am pleased with the progress we are making on the multi year transformation of our business said Chuck Robbins CEO Cisco The Network is becoming even more critical to business success as our customers add billions of new connections to their enterprises We are laser focused on delivering unparalleled value through highly secure software defined automated and intelligent infrastructure
Here s a graph that looks at Cisco s price consensus and EPS surprise Cisco Systems Inc Price Consensus and EPS Surprise Cisco Systems Inc is the worldwide leader in networking for the Internet Cisco s Internet Protocol based networking solutions are the foundation of the Internet and most corporate education and government networks around the world Cisco provides the broadest line of solutions for transporting data voice and video within buildings across campuses or around the world
Stocks that Aren t in the News Yet
You are invited to download the full up to the minute list of 220 Zacks Rank 1 Strong Buys free of charge Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street
They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of 26 per year |
CSCO | Cisco Sinks On Weak Guidance ETFs To Watch | After the closing bell on Wednesday one of the tech primes Cisco Systems NASDAQ CSCO came up with solid fiscal third quarter results beating our estimates for both the top and the bottom line However investors were disappointed with a bleak revenue guidance Earnings of 54 cents per share surpassed the Zacks Consensus Estimate by a penny Revenues declined 1 year over year to 11 90 billion but edged past our estimate of 11 89 billion The networking leader has been transitioning its traditional business of high end switches and routers to high growth areas such as security the Internet of Things and cloud computing As a result Cisco expects revenues to decline 4 6 year over year for the ongoing fiscal fourth quarter The projection is worse than the Zacks Consensus Estimate of a 0 94 decline Earnings per share are expected in the range of 60 62 cents the midpoint of which is much above the Zacks Consensus Estimate of 58 cents see The bleak revenue outlook took a toll on investors sentiment pushing CSCO shares down as much as 8 6 in after hours trading yesterday Additionally the stock lost 7 5 in pre market trade today at the time of writing Currently Cisco has a Zacks Rank 4 Sell with a VGM Style Score of B and boasts a dismal Rank in the bottom 8 indicating that the some pain is in store for the stock Further the world s largest networking gear maker has returned 13 7 over the past one year much below the Zacks categorized Computer Networking industry s return of 22 8 ETFs to WatchGiven this ETFs having the largest allocation to this network giant will be in focus over the coming days Investors should closely monitor the movement in these funds and grab the opportunity when it arises or avoid if the stocks drags them down read iShares North American Tech Multimedia Networking ETF SNX IGN This ETF provides a concentrated exposure to the domestic multimedia networking securities by tracking the S P North American Technology Multimedia Networking Index Holding 24 securities in its basket Cisco takes the fourth spot with an 8 5 allocation The product has accumulated 80 2 million in its asset base while sees a lower volume of around 31 000 shares a day Expense ratio comes in at 0 47 The fund has added 2 2 in the year to date timeframe and has a Zacks ETF Rank of 2 or Buy rating with a High risk outlook First Trust NASDAQ Technology Dividend Index Fund This fund provides exposure to the dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index The product has amassed about 723 2 million in its asset base and trades in moderate volume of about 93 000 shares per day The ETF charges 50 bps in annual fees and holds about 89 securities in its basket Of these firms CSCO occupies the third position making up roughly 7 9 of the assets In terms of industrial exposure the fund allocates more than one fourth portion in semiconductor and semiconductor equipment followed by software 15 3 diversified telecom services 14 7 technology hardware storage peripherals 13 5 and communications equipment 10 7 The fund is up 6 9 so far this year First Trust Nasdaq Cybersecurity ETF This ETF follows the Nasdaq CTA Cybersecurity Index which measures the performance of companies engaged in the cyber security segment of the technology and industrials sectors It has accumulated 227 3 million in its asset base The fund charges 60 bps in annual fees and trades in a moderate average daily volume of about 86 000 shares In total the product holds 30 stocks in its basket with Cisco taking the third spot at 6 It is skewed toward the software industry at 57 8 while communications equipment rounds off the next spot at 18 1 of assets The fund has risen about 10 8 in the year to date timeframe read PowerShares Dynamic Networking Portfolio This fund follows the Dynamic Networking Intellidex Index holding 30 securities in its basket Out of these Cisco is the eighth firm accounting for a 4 9 share From a sector look communication equipment account or half of the portfolio followed by 28 in software and programming The fund is unpopular and illiquid in the broad tech space with AUM of 27 1 million and average daily volume of about 7 000 shares It charges 63 bps in annual fees and has gained 9 in the year to date time frame PXQ has a Zacks ETF Rank of 3 or Hold rating with a High risk outlook Want key ETF info delivered straight to your inbox Zacks free Fund Newsletter will brief you on top news and analysis as well as top performing ETFs each week |
XOM | 4 Top Oil Stocks With Winning Streaks At Earnings Season | So far 2016 has not been smooth sailing for the U S oil futures The commodity has been very volatile this year with prices recovering from a 12 year low of 26 21 a barrel in February to 50 barrel mark in early June slipping again to under 40 only to rally toward 50 once more
Factors at Play
While factors like Canadian wildfires Nigerian outages disruptions production issues in Venezuela and a strike by Kuwaiti oil workers contributed to jump in prices earlier this year that saw the benchmark recover significantly these issues have largely vanished from the market As of now overproduction of crude and a glut of refined products keep the commodity under pressure
At over 520 million barrels current crude supplies are up 14 from the year ago period and are at the highest level during this time of the year As it is improvement in oil fundamentals remain fragile with the existing stocks of refined product inventories gasoline and distillate remaining at their maximum seasonal levels in at least 20 years despite healthy demand Piling on the misery is the Baker Hughes report revealing a steady rise in the U S oil rig count and pointing to the resurgence in shale drilling activities
A number of major industry players including Exxon Mobil Corp NYSE XOM Royal Dutch Shell LON RDSa plc and BP plc NYSE BP have reported sub standard second quarter numbers as lower energy prices take a toll
Q2 Flashback
A look back at Q2 earnings season reflects that the overall results of the Oil Energy sector were again very weak dragging down the aggregate growth picture for the S P 500 index
Despite an impressive recovery crude prices stayed under 50 about half the level of two years ago and far below the breakeven price for many energy companies Moreover most oil producers have been churning out black gold at full throttle thereby letting the commodity slip
Earnings fell by a whopping 78 9 year over year following a 108 6 drop witnessed in the previous quarter Things have been bad on the revenue front too which was down 24 4 in the June quarter after declining 29 3 in the previous three month period
Beating the Odds
However like always there were some companies that trumped these challenges and stood out with great earnings surprises While not every company that posts positive earnings surprises witnesses a gain in stock price studies show that on an average earnings beats drive strong returns in share prices for several weeks following the report Picking out and investing in such stocks can boost your portfolio returns
Earnings Surprise History Is Important
With a few energy firms outperforming Q2 estimates it is by no means an easy task for investors to arrive at stocks that have the potential to deliver attractive returns
However a history of positive earnings surprise generally works as a catalyst in sending a stock higher It indicates the company s ability to surpass the estimates So investors take it in their consideration while betting on the stock with the expectation that the company will do the same trick to outpace the estimates in the upcoming release
The Zacks Rank which justifies a company s strong fundamentals can also come in really handy
Finally the chosen ones have less than or equal to B Here V stands for Value G for Growth and M for Momentum and the score is a weighted combination of these three scores Such a score allows you to eliminate the negative aspects of stocks and select winners However it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score
Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank 1 Strong Buy or 2 Buy offer the best upside potential
4 Stocks to Invest In
Independence Contract Drilling Inc NYSE ICD Houston TX based Independence Contract drilling offers land drilling services for oil and natural gas producers primarily in the U S
Zacks Rank 2
VGM Score B
Average EPS Surprise in the Last 4 Quarters 48 77
McDermott International Inc NYSE MDR Incorporated in 1959 Houston TX based McDermott International is an engineering and construction company solely focused on the offshore oil and gas business
Zacks Rank 2
VGM Score A
Average EPS Surprise in the Last 4 Quarters 481 54
NGL Energy Partners L P NYSE NGL It is a limited partnership operating a vertically integrated propane business with three operating segments retail propane wholesale supply and marketing and midstream
Zacks Rank 1
VGM Score B
Average EPS Surprise in the Last 4 Quarters 228 54
Subsea 7 S A OTC SUBCY London based Subsea 7 is a leading oilfield contractor engaged in the designing procurement building installation and servicing of a range of offshore surface and sub surface equipment for the oil and gas industry
Zacks Rank 2
VGM Score A
Average EPS Surprise in the Last 4 Quarters 71 63
Bottom Line
Historical earnings surprise can be viewed as a key metric for share price outperformance and can greatly increase your odds of grabbing big winners |
VZ | The Other Wireless Players | AT T T and Verizon VZ have locked up the wireless space But there are other carrier and providers as well And with the giants consolidating a bit it is worth looking at the smaller guys Three of them are ripe for a run higher Take a look Leap Wireless LEAP Leap Wireless LEAP is peeking above trendline resistance coming from a higher low It has support for a continued move higher from the rising and bullish Relative Strength Index RSI and a Moving Average Convergence Divergence indicator MACD that is positive and growing A continued push through resistance has a gap to fill higher at 7 69 near the Measured Move at 7 75 Get your alerts in MetroPCS Communications PCS MetroPCS Communications PCS moved back through the prior gap from February and over 13 month trendline resistance on Wednesday It has a RSI that is technically overbought but rising expanding Bollinger bands and a MACD that is positive and growing These support further upside but the high RSI suggests some consolidation may be needed before a further run Using a stop loss under that resistance you can hold this long and look for a gap fill to 15 90 Notice that there is very little previous price action to work through over 10 88 Sprint S Maybe not the grand daddy but maybe the older brother of them all Sprint S also broke above resistance at 5 50 Wednesday It too has a RSI that is rising and bullish expanding Bollinger bands and a MACD that is positive and growing to support more upside The Measured Move higher takes it to 6 but the Cup and Handle pattern break then measures to 9 above that Disclaimer The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my page for my full disclaimer |
XOM | Saudi s SABIC still keen on Exxon Mobile venture in U S looking for more | By Marwa Rashad and Reem Shamseddine
RIYADH Reuters Saudi Basic Industries Corp SABIC SE 2010 remains upbeat on a proposed petrochemical venture in the United States with Exxon Mobil N XOM and a preliminary investment decision could be made within months SABIC s chief executive said on Thursday
Last July SABIC one of the world s largest petrochemicals groups said it was studying whether to build a petrochemical complex on the U S Gulf Coast with an Exxon affiliate The project would supply ethylene to other units making derivatives
SABIC chief executive Yousef al Benyan told Reuters on Thursday that he would travel to the United States at the end of this month to look at the proposed project
The outlook is still very positive We will be working with Exxon Mobil to come up with a very strong competitive structure of this project
We are very excited about current developments with Exxon Mobil not only the cracker but also in the downstream type of projects we are going to do
He added that SABIC would probably make an announcement about the ethylene project in the second quarter of this year though this was not certain
SABIC is keen to invest abroad to diversify its risks and improve its access to foreign markets Benyan said the company was looking to make other U S investments worth between 2 5 billion and 3 billion
We think SABIC needs to strengthen its position in the U S and leverage the current growth of demand for our commodity business
He did not give details of the possible investments but said Some of them will be partnerships and some will be alone because I think we in SABIC have the capability to do that ourselves
Asked about the outlook for SABIC s sales in the United States under president elect Donald Trump who has pledged to promote local companies Benyan said that because of its U S facilities SABIC viewed itself as a local manufacturer
He also said he did not at present see any risk to SABIC s assets from last September s vote in the U S Congress to allow relatives of victims of the Sept 11 attacks to sue Saudi Arabia
This is part of our continuous risk assessment that we have within our corporate finances but at this point we don t see any problem and this will never really change our mind about growing our business in the United States |
XOM | U S Senators McCain Graham to support Tillerson nomination | WASHINGTON Reuters Two senior Republican lawmakers said on Sunday they would vote to approve President Donald Trump s nominee for secretary of state Rex Tillerson despite their concerns over the former ExxonMobil chief s relationship with Russia s president After careful consideration and much discussion with Mr Tillerson we have decided to support his nomination to be secretary of state Senators John McCain of Arizona and Lindsey Graham of South Carolina said in a statement Though we still have concerns about his past dealings with the Russian government and Russian President Vladimir Putin we believe that Mr Tillerson can be an effective advocate for U S interests said the two senators veteran foreign policy experts The Republican controlled Senate has so far confirmed two of Trump s nominees for cabinet posts but Tillerson former chief executive officer at Exxon Mobil Corp NYSE XOM has faced criticism from several prominent Republicans because of his close relationships with Russian officials including Putin Senate Majority Leader Mitch McConnell said he was confident that all of Trump s cabinet nominees will be confirmed Speaking on Fox News Sunday McConnell also said the Senate would confirm a Supreme Court justice nominee eventually picked by Trump
The Senate Foreign Relations Committee is expected to vote on Tillerson s nomination on Monday with a full Senate vote coming shortly after |
XOM | Senate Republican Rubio backs Tillerson for secretary of state | WASHINGTON Reuters U S Republican Senator Marco Rubio on Monday said he will vote to back President Donald Trump s nominee for secretary of state Rex Tillerson despite the former Exxon Mobil Corp NYSE XOM CEO s troubling responses before lawmakers regarding Russia
Despite my reservations I will support Mr Tillerson s nomination in committee and in the full Senate Rubio said in a statement posted on Facebook NASDAQ FB ahead of the Senate Foreign Relations Committee s vote on Tillerson later on Monday A vote in the Republican controlled Senate is expected shortly afterward |
XOM | Republican Rubio clears way for Tillerson s approval as top U S diplomat | WASHINGTON Reuters U S Republican Senator Marco Rubio reluctantly backed President Donald Trump s nominee for secretary of state Rex Tillerson in a move that all but secures Senate confirmation of the former Exxon Mobil Corp NYSE XOM chief executive as the nation s top diplomat later on Monday Rubio said he was troubled by Tillerson s recent responses before lawmakers regarding Russia as well as other countries but that he ultimately decided he would vote to approve the nominee in deference to Trump as well as to fill a critical top job Despite my reservations I will support Mr Tillerson s nomination in committee and in the full Senate Rubio said in a statement ahead of the Senate Foreign Relations Committee s vote on Tillerson A vote in the Republican controlled Senate was expected shortly after the committee vote Tillerson was expected to win confirmation despite opposition from Democrats Rubio a onetime rival to Trump for the Republican presidential nomination said he would not be so deferential regarding Trump s other nominees for top State Department posts At a confirmation hearing earlier this month Tillerson s views appeared to be at odds with Trump s on key foreign policy issues such as nuclear proliferation trade deals climate change and relations with Mexico The nominee also had a tense exchange with Rubio on whether he believed Russian President Vladimir Putin was a war criminal in reference to Russia s military actions in support of Syria s government Tillerson said he would not use that term Tillerson 64 also sidestepped questions on human rights declining to condemn countries like Saudi Arabia and the Philippines for rights abuses Over the weekend fellow Republican Senators John McCain and Lindsey Graham said they would back Tillerson despite their concerns over his relationship with Putin as CEO of one of the world s largest corporations Republican Senator Rob Portman on Monday also voiced his support and said he was reassured by Tillerson s commitment at the Jan 11 hearing to support NATO an organization that Trump has voiced differing opinions about Earlier on Monday the most senior Democrat on the Senate Foreign Relations Committee Ben Cardin said he would not support Tillerson
The power of the Secretary of State to call out wrong to name and shame and to fight each day on behalf of the American people and freedom seeking people the world over is an enduring symbol Cardin said in a prepared statement |
XOM | Best 3 Vanguard Mutual Funds To Add To Your Portfolio | Founded by John C Bogle in 1975 Vanguard is one of the world s largest investment management companies With around 3 trillion of assets under management the company offers around 175 domestic funds and 145 funds for foreign markets It offers asset management and financial planning services to clients throughout the globe Vanguard stands out from the other mutual fund companies because it is owned by the funds themselves The company believes that this structure helps management focus better on shareholder interests Among the advantages Vanguard claims to offer low cost and no load are notable Below we share with you three top rated Vanguard mutual funds Each has earned a Strong Buy and is expected to outperform its peers in the future Investors can their Zacks Rank and past performance Vanguard Strategic Equity Investor seeks long term growth of capital VSEQX invests a large portion of its assets in equity securities VSEQX invests in both small and mid capitalization domestic equity securities The fund selects securities that provide a balance between strong growth and reasonable valuations compared to industry peers The Vanguard Strategic Equity Investor fund has a three year annualized return of 11 2 VSEQX has an expense ratio of 0 21 as compared to the category average of 0 99 Vanguard US Value Fund Investor invests all of its assets in undervalued companies having low price earnings P E ratios VUVLX focuses on acquiring stocks of large and mid cap companies having impressive growth potential and favorable valuations The fund seeks long term capital growth and high income Vanguard US Value Investor has a three year annualized return of 9 7 As of June 2016 VWUSX held 248 issues with 4 01 of its assets invested in Exxon NYSE XOM Mobile Corp Vanguard High Yield Tax Exempt seeks current income exempted from federal personal income taxes VWAHX invests a large chunk of its assets in municipal securities that are rated investment grade by a nationally recognized statistical rating organization NRSRO However a maximum of 20 of VWAHX s assets may get invested in securities that are rated below investment grade Vanguard High Yield Tax Exempt has a three year annualized return of 8 2 VWAHX has an expense ratio of 0 20 as compared to the category average of 0 83 To view the Zacks Rank and past performance of all Vanguard mutual funds investors can Want key mutual fund info delivered straight to your inbox Zacks free Fund Newsletter will brief you on top news and analysis as well as top performing mutual funds each week |
PCG | Judge holds off on changing PG E probation terms | U S District Court Judge William Alsup decided against changing probation terms for PG E NYSE PCG related to its felony conviction in the deadly 2010 natural gas pipeline explosion that requires the company to take measures to prevent wildfires At the end of a heated hearing today the judge overseeing PG E s probation said he would not change terms for now because he wants to first see a report the utility must submit by Feb 6 to California s utilities regulator on its plans for addressing wildfire risks The judge chided PG E stressing it is a convicted felon and saying it has demonstrated a clear cut pattern of starting fires Earlier this month the judge proposed terms requiring PG E to cut back trees around power lines and turn off power lines during high winds PG E responded with a brief arguing it could cost as much as 150B to fully comply with the suggested scope of work Now read |
VZ | AT T Reliable Blue Chip ForThis Rough Market | Here we go again Market volatility is picking up and it s causing an upset stomach for many an investor There is an excellent remedy though tilt the equity portion of your portfolio toward large high quality companies that provide essential products and services and pay strong dividends Shares of these companies typically display well below average price volatility because investors can count on them so a painful sell off is much less likely in rough markets True these stocks tend to be well beyond the fast growth phase but you d be surprised at how many manage to pace or outperform the overall market over time which is a notoriously hard thing to do To find such a stock you need only scan a list of the 30 companies that make up the Dow Jones Industrial Average The one I d like to tell you about currently pays a dividend of 1 76 a share which translates to a very attractive yield of just under 6 based on recent share prices And talk about a stock that helps you sleep better at night The price tends be much more stable than average typically fluctuating only about half as much as the overall stock market You can tell this from the beta coefficient a simple statistic that compares a stock s price movement to that of the market If the beta is 1 0 it means the stock moves with the market The Dow stock I m referring to AT T Inc NYSE T has a beta of 0 46 so it s usually 54 less volatile than the market For those of you worried about AT T s ability to compete and pay high dividends after last December s decision to abandon a 39 billion deal to acquire 4G wireless provider T Mobile USA Inc don t let the setback deter you from owning this safe high quality stock Yes owning T Mobile would have contributed greatly to AT T s profit making ability if the government hadn t foiled the deal with an antitrust lawsuit But the fact is AT T will be just fine without T Mobile For one thing it s still the second largest U S wireless carrier with 101 million customers 89 million traditional wireless users and 12 million users of e readers and other non cellphone devices And it s still the No 1 local phone company in 22 states serving 40 million phone lines and 16 million Internet users As a mature telecommunications firm AT T doesn t grow revenue very quickly anymore so I m satisfied with the 3 growth rate of the past decade and I expect about the same growth rate going forward Still at this point in the firm s long history revenue is astounding in plain dollar terms It topped 126 billion in 2011 and is on pace to reach 129 billion in 2012 Assuming growth continues at 3 revenue will hit 146 billion in 2016 With plentiful free cash flow of 14 5 billion AT T comfortably handled the 3 billion payment it had to make in the fourth quarter of 2011 to T Mobile s owner Deutsche Telekom OTC DTEGY PK for dropping the T Mobile merger Analysts project free cash flow will climb by 4 annually for the next three to five years rising to 17 7 billion in 2016 That s a reasonable estimate in my opinion because AT T can really rake it in even without T Mobile Remember it still has a huge and growing base of wireless customers and a substantial base of traditional phone customers Together these customers account for about 70 of revenue with wireless now contributing around 50 and landlines about 20 The rest comes from things like wireless data access and directory advertising Clearly the move toward wireless has hurt the landline division but that business is still a cash cow And AT T should continue to benefit from fast growth in demand for iPhones and other wireless handsets The latest sign of this In the first quarter of 2012 the company activated 4 3 million iPhones a 19 increase compared with the first quarter of 2011 when it activated 3 6 million Handsets should become even more profitable analysts predict AT T and other wireless providers will cut back on subsidies the practice of offering the actual phone for free or at a deep discount in hopes of more than making up the cost through user charges AT T is also looking to spur growth through bandwidth acquisitions like the 1 9 billion worth of 700 MHz frequency it purchased from Qualcomm on Dec 22 2011 Large amounts may soon also be purchased cheaply from Verizon Communications Inc NYSE VZ which is seeking to sell its 700 MHz frequencies in order to pursue other acquisitions The added 700 MHz capacity will help AT T expand its burgeoning Long Term Evolution LTE network LTE is widely considered the obvious successor to current wireless technology Risks to Consider Competition is intense and it could become even more so if small wireless carriers decide to compete aggressively on price A price war would almost certainly hurt cash flow and this could slow or stagnate dividend growth Since there s no impending price war I m confident AT T will remain the safe reliable dividend payer investors have come to expect Estimates for the dividend to climb by 3 a year going forward are easily achievable in my opinion considering AT T s strong cash position today and the high likelihood of maintaining that position in the future by Tim Begany |
VZ | Best Yielding Large Cap Technology Stocks | It s very important to know what yields are traded within a sector or industry in order to compare risks and premiums I made a screen of the best yielding large capitalized technology stocks 82 companies from the technology sector have a market capitalization over USD 10 billion and 56 of them pay dividends Below I listed all stocks with a yield over four percent Two industries are strongly represented The domestic and foreign telecom services industry In my view these industries offer values for investors but for technology stocks there are better investments with higher growth The big burdens of telecom services stocks are huge infrastructure investments due to higher data volumes and low pricing power due to legislation rules and competitive forces If you want to make big money within the technology sector you should look at IT stocks and software companies CenturyLink NYSE CTL has a market capitalization of 23 90 billion The company employs 49 200 people generates revenues of 15 351 00 million and has a net income of 573 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 6 029 00 million Because of these figures the EBITDA margin is 39 27 percent operating margin 13 05 percent and the net profit margin finally 3 73 percent Financial Analysis The total debt representing 38 90 percent of the company s assets and the total debt in relation to the equity amounts to 104 84 percent Due to the financial situation a return on equity of 3 76 percent was realized Twelve trailing months earnings per share reached a value of 1 22 Last fiscal year the company paid 2 90 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 31 60 P S ratio 1 57 and P B ratio 1 15 Dividend Yield 7 48 percent The beta ratio is 0 72 AT T NYSE T has a market capitalization of 193 05 billion The company employs 256 420 people generates revenues of 126 723 00 million and has a net income of 4 184 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 27 595 00 million Because of these figures the EBITDA margin is 21 78 percent operating margin 7 27 percent and the net profit margin finally 3 30 percent Financial Analysis The total debt representing 23 95 percent of the company s assets and the total debt in relation to the equity amounts to 61 36 percent Due to the financial situation a return on equity of 3 63 percent was realized Twelve trailing months earnings per share reached a value of 0 69 Last fiscal year the company paid 1 73 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 47 59 P S ratio 1 54 and P B ratio 1 86 Dividend Yield 5 32 percent The beta ratio is 0 58 Verizon Communications NYSE VZ has a market capitalization of 114 38 billion The company employs 191 800 people generates revenues of 110 875 00 million and has a net income of 10 198 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 29 376 00 million Because of these figures the EBITDA margin is 26 49 percent operating margin 11 62 percent and the net profit margin finally 9 20 percent Financial Analysis The total debt representing 23 93 percent of the company s assets and the total debt in relation to the equity amounts to 153 33 percent Due to the financial situation a return on equity of 6 45 percent was realized Twelve trailing months earnings per share reached a value of 0 93 Last fiscal year the company paid 1 98 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 43 25 P S ratio 1 04 and P B ratio 3 20 Dividend Yield 4 92 percent The beta ratio is 0 53 Thomson Reuters NYSE TRI has a market capitalization of 24 46 billion The company employs 60 500 people generates revenues of 13 807 00 million and has a net income of 1 396 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 855 00 million Because of these figures the EBITDA margin is 6 19 percent operating margin 5 11 percent and the net profit margin finally 10 11 percent Financial Analysis The total debt representing 23 38 percent of the company s assets and the total debt in relation to the equity amounts to 46 29 percent Due to the financial situation a return on equity of 7 87 percent was realized Twelve trailing months earnings per share reached a value of 1 62 Last fiscal year the company paid 1 24 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is not calculable P S ratio 1 81 and P B ratio 1 53 Dividend Yield 4 24 percent The beta ratio is 0 95 Take a closer look at the full table of the best yielding Large Cap technology stocks The average price to earnings ratio P E ratio amounts to 19 04 and forward P E ratio is 11 93 The dividend yield has a value of 6 43 percent Price to book ratio is 2 24 and price to sales ratio 1 88 The operating margin amounts to 15 25 percent Here is the full table with some fundamentals TTM Related stock ticker symbols TEF FTE NOK VIP CTL CHT MBT PHI BCE T VOD TI VZ SI RCI TRI TU VIV TLK |
XOM | The Exxon Knew controversy is plaguing Rex Tillerson here s what it means | Outside the hearing on former ExxonMobil CEO Rex Tillerson s nomination as secretary of state 15 people dressed as T Rex dinosaurs joined hundreds of protesters
In addition to calling Tillerson a climate dinosaur a reference to Exxon s history of climate change denial the demonstrators rhetoric centered around one phrase ExxonKnew
The allegation refers to two damning investigations conducted by the and in 2015 both of which found that Exxon leaders knew humans were causing climate change as early as 1977 yet intentionally misled the public about global warming while lobbying the government to block emissions regulations The reports sparked outrage spreading online with the hashtag ExxonKnew
Inside Climate News series which was published after an eight month investigation suggests that Exxon was briefed by scientists and even conducted its own robust climate modeling programs for years all of which suggested that fossil fuels were to blame for spiking global temperatures The LA Times report confirms the same But despite this information Exxon continued to push for the appointment of officials who broke with the mainstream opinion on climate change and set up the Global Climate Coalition a lobbying partnership devoted to opposing controls on carbon pollution
A from the Union of Concerned Scientists also suggested that Exxon used the same tactics as the cigarette industry to promote uncertainty about the facts of climate change
Tillerson actually that climate change is a problem unlike EPA nominee Scott Pruitt and President elect Donald Trump However environmental advocates believe Exxon s record speaks louder than Tillerson s words According to an analysis by NextGen Climate this week Exxon gave more than 6 5 million to groups that deny fossil fuels contribute to global warming between 2008 and 2015 The company vowed nine years ago to stop funding groups that promoted misinformation about climate change
Senator Tim Kaine questioned Tillerson about that history during the today asking him whether Exxon Mobil NYSE XOM knew about climate change long ago despite what the company has publicly stated
Tillerson suggesting that he can t speak for the company now that he no longer works there
Do you lack the knowledge to answer my question or are you refusing to answer my question Mr Kaine asked
A little of both Mr Tillerson replied
Both Kaine and various environmental groups took this response as confirmation of the Exxon Knew controversy
Tweet Embed It s shameful Tillerson refused to answer my questions on his company s role in funding phony climate science Bottom line
May Boeve executive director of grassroots environmental organization 350 org immediately highlighting Tillerson s refusal to answer Kaine s question Tillerson is still lying about what Exxon knew about climate change Boeve said Tillerson deserves a federal investigation into Exxon s lies not a cabinet appointment
Stephen Kretzmann Executive Director of Oil Change International an organization that works to expose the dangers of fossil fuels and promote a clean energy transition echoed these sentiments
Unsurprisingly Tillerson essentially pled the fifth when asked about Exxon s long history of denying climate science explicitly refusing to answer the question or accept any responsibility for the actions of the company of which he was CEO for the last decade he said The record is clear Exxon Knew
Various states including Massachusetts and are currently investigating whether Exxon Mobil indeed lied to the public and its shareholders since that could mean the company engaged in fraud and violated various environmental laws In November 2016 New York Attorney General Eric Schneiderman of Exxon s internal documents
Whether or not Tillerson becomes our next Secretary of State Exxon s past will undoubtedly continue to plague him |
XOM | Mad Dog Mattis eyes reform of Pentagon procurement | Investing com Defense Secretary nominee James Mattis a retired Marine Corps four star general appeared before the Armed Services Committee this morning for his vetting hearing and testified that his leading priorities would be to strengthen American military alliances around the globe and improve antiquated business processes at the Pentagon for procurement if he is confirmed by the Senate
We see each day a world awash in change said Gen Mattis We see islands of democracy under attack Our armed forces must remain the best led best equipped and most lethal in the world
President elect Trump wants to try to renegotiate America s stance toward Russia for instance
But Mattis thinks Russia is on the offensive and seeking to undermine the North Atlantic Treaty Organization NATO
Under questioning Mattis said that he was mindful that the U S had tried a number of times since the Yalta conference during World War II to reset relations with Russia for example but has had mixed results
Mattis said he was enjoying retirement west of the Rocky Mountains and not involved in the presidential election when the surprise call came from President elect Trump requesting he serve as the new secretary of defense
Former head of NATO and of the Central Command Centcom Mattis led much of the military strategy creation in the War on Terror in Iraq and Afghanistan He is said to be a scholar of military matters with a library of more than 6 000 volumes ranging from Sun Tzu to General U S Grant and can quote from Thucydides from memory without consulting Wikipedia said former Sen William Cohen R Maine a former defense secretary himself
The general is coming to office at a time of a shifting global balance of power with Russia Islamic terrorists and the Chinese being more powerful players than they were just eight years ago a leading U S senator said
Our world order is not self sustaining Hard power matters There is a perception around the world that America is weak and distracted The threat posed by violent Islamic extremism continues to metastasize said Sen John McCain R Ariz chairman of the Senate Armed Services Committee ISIL is a symptom of this disorder
Mattis is expected to be easily confirmed as defense secretary and the Senate has prepared a legislative waiver that will allow him to take office immediately even though he has not been retired from the military for seven years before assuming this senior civilian post at the Pentagon as is required by statute
Here s a guy who is military through and through who is a Marine through and through said Sen James Inhofe R Okla in a TV interview on the nomination of Gen Mattis He s going to go flying through the nomination process
In related Trump administration confirmation news Dr Ben Carson was undertaking his confirmation hearing to head the Department of Housing and Urban Development and Rex Tillerson CEO of ExxonMobil NYSE XOM was completing his second day of testimony for the position of Secretary of State |
XOM | Chinese tabloid says U S needs to wage war to block off South China Sea islands | BEIJING Reuters Blocking Chinese access to islands in the South China Sea would require the U S to wage war an influential Chinese state run tabloid said on Friday after U S Secretary of State nominee Rex Tillerson suggested the strategy on Wednesday Tillerson told his confirmation hearing before the U S Senate Foreign Relations Committee that he wanted to send a signal to China that their access to islands in the disputed South China Sea is not going to be allowed He did not elaborate The United States would have to wage a large scale war in the South China sea to prevent Chinese access to the islands the Global Times said in an English language editorial The paper which is known for writing strongly worded hawkish and nationalist editorials is published by the ruling Communist Party s flagship paper It does not reflect Chinese policy Tillerson had better bone up on nuclear power strategies if he wants to force a big nuclear power to withdraw from its own territories the paper added The editorial also said that Tillerson an Exxon Mobil Corp NYSE XOM chairman and former chief executive was the most likely of U S President elect Donald Trump s cabinet picks to be vetoed by congress It is suspected that he merely wanted to curry favor from senators and increase his chances of being confirmed by intentionally showing a tough stance toward China it said The paper did not elaborate on either point A similar article was also carried in the paper s Chinese language website that receives thousands of hits every day There are also legal questions of any U S attempt to block China s access the editorial said asking if this might mean that Vietnam and Philippines also should be denied entry China claims most of the energy rich South China Sea through which about 5 trillion in ship borne trade passes every year Neighbors Brunei Malaysia Taiwan and Vietnam also have claims The United States has previously called on China to respect the findings of the arbitration court in The Hague earlier this year which ruled in favor of the Philippines rejecting China s territorial claims in the strategic waterway
Democratic President Barack Obama s administration conducted periodic air and naval patrols to assert the right of free navigation in the South China Sea These have angered Beijing but seeking to blockade China s man made islands would be a major step further and a step that Washington has never raised as an option |
XOM | Strong retail sales push up dollar | Investing com Forex markets reacted to positive retail sales data today pushing the dollar up against the yen the euro and the pound
The euro dollar pairing was up 0 29 to 1 0641
The yen dollar pairing was down 0 17 to 114 50
The pound dollar pair increased 0 21 to 1 2181 The price of gold was also down on the day s strong retail sales data settling at 1197 80 a decline of 0 17
Analysts noted the dollar gained against the yen but was little changed against the euro on Friday The greenback is rebounding from five week lows Retail sales data fueled expectations that the Federal Reserve Bank would indeed raise interest rates three times this year as previously announced
The U S Commerce Department today reported that retail sales increased 0 6 in December while November s retail sales were revised upward to reveal a 0 2 rise instead of the previously reported 0 1 gain
President elect Trump takes office a week from today Only CIA Director Mike Pompeo and Secretary of Defense James Mattis are expected to be confirmed by the Senate before the president takes the oath of office on Friday afternoon
Secretary of State Rex Tillerson the CEO of ExxonMobil Corporation NYSE XOM may see his nomination delayed by opposition Democrats
Sen Marco Rubio R Fla is said to be considering a no vote or not voting at all in committee in order to delay Tillerson s confirmation
Rubio lost the GOP nomination for president to Trump last year failing even in his home state of Florida |
XOM | U S State Department nominee Tillerson fights climate deposition | By Emily Flitter NEW YORK Reuters Rex Tillerson the former oil executive under consideration for U S secretary of state is trying to avoid giving testimony in a federal lawsuit over climate change according to a lawyer for a group of teenagers who filed the suit Lawyers for the teenagers who sued the federal government claiming it violated their constitutional rights by causing global warming were scheduled to depose Tillerson the former chief executive of Exxon Mobil NYSE XOM in his capacity as a board member of the American Petroleum Institute a trade group The lawyers planned to ask Tillerson when he first learned of the impact the burning of fossil fuels was having on the Earth s atmosphere His answers might then be used to prove the government working with the energy and manufacturing industries continued to allow activities harmful to the environment despite knowing the risks to future generations said Julia Olson a lawyer in Eugene Oregon who is executive director of Our Children s Trust and representing the teenagers Tillerson s deposition was set for Jan 19 a day before President elect Donald Trump s inauguration But Olson said the API s lawyers told her in a letter that Tillerson should not have to testify because he is no longer affiliated with the group Her team has asked API to prove Tillerson had left the group on Dec 28 when they sent notice of their intent to depose him If he was still on the board on the date of notice of deposition he can still be deposed Olson said The lawsuit brought in federal court in Oregon says the U S government helped to cause climate change through its policies thus denying a group of young people their constitutional right to life liberty and property The API and two other industry groups intervened in the case claiming a judgment requiring the government to tighten environmental regulations would harm their business interests Tillerson announced he was retiring from ExxonMobil on Dec 14 a day after Trump announced his nomination as secretary of state The API has not announced any change to Tillerson s role in its organization but its president released a statement congratulating Tillerson on his nomination on Dec 13 An API spokesman lawyers for the API and a spokesman for the Trump transition team did not immediately respond to a request for comment The case is Juliana v U S U S District Court District of Oregon Eugene No 15 cv 01517
This version of the story was refiled to say the API s lawyers told her in a letter not that they told her by telephone in paragraph six |
XOM | Russia says ready to talk to Trump about nuclear arms Syria | By Andrew Osborn and Vladimir Soldatkin MOSCOW Reuters Russian Foreign Minister Sergei Lavrov said on Tuesday that Moscow was ready to talk to U S President elect Donald Trump s new administration about nuclear weapons and Syria saying the two countries could together solve many of the world s problems Lavrov speaking days before Trump s inauguration used an annual news conference to flag potential areas of cooperation and to belittle what he described as malicious attempts to link Trump to Russia in a negative light Trump who has praised President Vladimir Putin has signaled he wants to improve strained ties with Russia despite U S intelligence agencies alleging the Kremlin chief ordered a cyber campaign to help him beat rival Hillary Clinton to the White House Russia denies it tried to sway the U S election by hacking or other means It has also dismissed as a fabrication a dossier written by a former officer in Britain s Secret Intelligence Service MI6 which suggested Moscow had collected compromising information about Trump Lavrov dismissed the dossier s author Christopher Steele as a fugitive charlatan from MI6 and said the dossier looked like part of a campaign to cause problems for Trump and his allies Putin on Tuesday called the same dossier a hoax While cautioning that the new U S administration would need to settle in before wider conclusions could be drawn Lavrov signaled he was encouraged by the tenor of the Trump team s statements so far which he said suggested it would be possible to have a pragmatic relationship Trump has a particular set of views which differ a lot from his predecessor said Lavrov who accused the Obama administration of wrecking cooperation across a swath of areas and of trying to recruit Russian diplomats as agents By concentrating on a pragmatic search for mutual interests we can solve a lot of problems He said Syria was one of the most promising areas for cooperation saying the Kremlin had welcomed Trump s statement that he wanted to make fighting global terrorism a priority What we hear from Donald Trump on Syria and his team speaks to how they have a different approach to Obama and won t resort to double standards said Lavrov SYRIA AND NUKES On Syria Lavrov said representatives from the new U S administration had been invited to take part in peace talks slated for Jan 23 in Kazakhstan He hoped U S officials would attend he said as that would be the first opportunity for Moscow and Washington to start talking about closer Syria cooperation Moscow backs President Bashar al Assad in the Syria conflict while Washington supports rebels opposing him but both have a common enemy in Islamic State militants Lavrov questioned however whether Trump in an interview he gave to The Times of London had really suggested he would be ready to drop U S sanctions on Moscow in exchange for nuclear arms cuts saying his own reading of the interview had not suggested any linkage between the two issues But he said Moscow wanted to start talks with the United States on nuclear weapons and on the balance of military power between the two former Cold War foes anyway It s one of key themes between Russia and the United States I am convinced we will be able to restart a dialogue on strategic stability with Washington that was destroyed along with everything else by the Obama administration Such talks could cover hypersonic weapons the U S anti missile shield in Europe space weapons and what he said was the U S refusal to ratify a ban on nuclear testing Trump has called for a nuclear weapons build up Some commentators have said Senate hearings for some of Trump s picks show they will be tough on Russia But Lavrov said he had been encouraged by Rex Tillerson the incoming Secretary of State whom he cited as saying Moscow s behavior was not unpredictable That means that we are dealing with people who won t get involved in moralizing but will try to understand their partner s interests Lavrov said
Tillerson had extensive dealings with Russia when he was the head of Exxon Mobil N XOM oil company |
XOM | India s Modi urges Chinese restraint as Trump handover nears | By Douglas Busvine NEW DELHI Reuters Growing military ambitions in the Asia Pacific are creating security risks Indian Prime Minister Narendra Modi said on Tuesday in a coded message to China to exercise strategic restraint Although couched in diplomatic language and not mentioning China by name Modi s remarks in a keynote foreign policy speech aligned New Delhi with U S President elect Donald Trump s intent to curb Beijing s regional clout Rising ambition and rivalries are generally visible stress points Modi told an audience of politicians and top military brass from 65 nations at a security conference in New Delhi The steady increase in military power resources and wealth in the Asia Pacific has raised the stakes of security The U S Republican has since his shock election victory in November over Democrat Hillary Clinton called into question the One China policy that Washington has adhered to for decades His pick for secretary of state former Exxon Mobil NYSE XOM CEO Rex Tillerson also told a confirmation hearing that Beijing s militarization of reclaimed islands in the disputed waters of the South China Sea must be stopped That is music to the ears of the foreign policy establishment in New Delhi as are Trump s tentative albeit in Washington controversial overtures towards Russia s President Vladimir Putin whom Modi on Tuesday called an abiding friend EMERGING INDIA Modi was addressing the second annual Raisina Dialogue a geopolitical gathering in New Delhi sponsored by India s foreign ministry and the Observer Research Foundation a think tank that is competing for attention with the higher profile World Economic Forum in Davos Switzerland Speaking in Davos Chinese President Xi Jinping avoided mention of Trump and instead mounted a vigorous defense of free trade that the American president elect has vowed to roll back to protect U S jobs Although many of the guests in New Delhi were former rather than current prime ministers they did include the top U S naval commander in the Pacific Admiral Harry Harris Modi elected on a nationalist platform in 2014 called for a rules based security architecture in the Asia Pacific that is open transparent balanced and inclusive and promote s dialogue and predictable behavior rooted in international norms and respect for sovereignty That reflects not only India s concerns about the South China Sea but fears that Beijing is threading a string of pearls in the Indian Ocean theater by building strategic ports in countries like Sri Lanka Pakistan and Djibouti on the eastern coast of Africa India has maritime interests in all directions that are strategic and significant said Modi whose country is the world s fourth largest oil importer and juts southward from the Eurasian landmass into the strategic shipping lane running from the Middle East to the rising economies of the Asia Pacific Primary responsibility for security in the Indian Ocean rests with those who live in this region he said
Respecting freedom of navigation and adhering to international norms are essential for peace and growth in the larger and interlinked marine geography of the Indo Pacific |
XOM | Trump s U N nominee to blast world body over Israel testimony | WASHINGTON Reuters U S President elect Donald Trump s nominee to be U S ambassador to the United Nations will blast the world body over its treatment of Israel at her Senate confirmation hearing according to prepared testimony seen by Reuters on Tuesday Nowhere has the UN s failure been more consistent and more outrageous than in its bias against our close ally Israel Republican South Carolina Governor Nikki Haley said in the opening remarks for her appearance on Wednesday before the Senate Foreign Relations Committee Any honest assessment also finds an institution that is often at odds with American national interests and American taxpayers the speech says In the remarks Haley offered some praise for UN activities such as health and food programs that have saved millions of lives weapons monitoring and some peacekeeping missions in something of a departure from Trump who has disparaged the United Nations Other Trump national security nominees notably his choices for Secretary of State former Exxon Mobil Corp NYSE XOM chairman Rex Tillerson and Secretary of Defense retired Marine General James Mattis have also broken from the Republican president elect in testimony before the Senate Noting that the United States contributes 22 percent of the UN budget far more than any other country Haley asked Are we getting what we pay for She promised to work with U S lawmakers to pursue what she described as seriously needed change at the United Nations Some Republican lawmakers led by South Carolina Senator Lindsey Graham have threatened to cut U S funding for the United Nations after the Security Council adopted a Dec 23 resolution demanding an end to settlement building by Israel
Graham will introduce Haley at her hearing |
XOM | Trump jokes Tillerson finding U S Senate confirmation tougher than thought | By Steve Holland WASHINGTON Reuters President elect Donald Trump quipped on Tuesday that his secretary of state choice Rex Tillerson is finding his Senate confirmation tougher than his days as chief executive officer of Exxon Mobil Corp NYSE XOM when he could cut deals with foreign nations Trump and Vice President elect Mike Pence appeared together at a VIP dinner featuring nearly 150 diplomats from countries around the world along with U S lawmakers and members of the Trump White House who will take power on Friday I think it s tougher than he thought Trump told the crowd noting that Tillerson was in attendance He goes into a country takes the oil goes into another country It s tough dealing with these politicians right He s going to be so incredible Trump said Tillerson has faced tough questions from some senators about his warm ties to Russia as a top U S oil executive U S Senator Marco Rubio of Florida a Republican has said he might vote against Tillerson At the black tie dinner both Trump and Pence sought to reassure countries that might be concerned about the America First agenda they plan to pursue that could lead to rewriting the NATO alliance and trade deals The truth is and this may be news to many of you but I m not sure that the national media here in America completely understands the president elect Pence said in introducing Trump
He s going to stand tall on the world stage Pence added Donald Trump will be a president who puts American first but we will work every day with nations around the world to advance the peace and prosperity of our allies and our friends across the world |
CSCO | Cisco Safest Dividend Yields Model Portfolio April 2017 | Ten new stocks make our Safest Dividend Yields Model Portfolio this month which was made available to members on April 20 2017
Recap from March s Picks
Our Safest Dividend Yields Model Portfolio 3 3 outperformed the S P 500 0 3 last month The best performing stocks in the portfolio were large cap stock Tupperware Brands NYSE TUP which was up 6 and small cap stock CBL Associates Properties NYSE CBL which was up 11 Overall 18 out of the 20 Safest Dividend Yields stocks outperformed the S P in March
The success of the Safest Dividend Yields Model Portfolio highlights the value of our Robo Analyst technology that scales our forensic accounting expertise featured in Barron s across the footnotes in 10 Ks for 3000 companies under coverage Companies with strong free cash flow provide higher quality and safer dividend yields because we know they have the cash to support the dividend
This Model Portfolio only includes stocks that earn an Attractive or Very Attractive rating have positive free cash flow and economic earnings and offer a dividend yield greater than 3 We think this combination provides a uniquely well screened group of stocks that can deliver returns greater than the market
New Stock Feature for April Cisco Systems Inc NASDAQ CSCO 33 share
Cisco Systems Inc CSCO is one of the April additions to our Safest Dividend Yields Model Portfolio We first featured CSCO as a top pick back in December 2014 when we highlighted the company s impressive return on invested capital ROIC and free cash flow FCF generation Since then the stock has outperformed the S P 500 on a price 23 vs 15 and total return basis 33 vs 20
CSCO has a long track record of profit growth and shareholder value creation Since 1998 Cisco has increased after tax profit NOPAT by 13 compounded annually Over the same period the company has earned an average ROIC of 15 and Cisco currently earns a top quintile ROIC of 17 The company has improved its NOPAT margin from 17 in 2011 to 21 over the last twelve months TTM
Figure 1 Cisco Systems Improving Fundamentals
Sources New Constructs LLC and company filings
Free Cash Flow Generation Supports Dividend Growth
CSCO increased its quarterly dividend to 0 29 per share in 1Q17 an increase of nearly 12 year over year The company has meaningfully increased its payout every year since 2011 when the quarterly dividend was just 0 06 per share Per Figure 2 these increases represent a 30 compound annual growth rate over the past six years The growth and sustainability of the dividend is enabled by CSCO s positive free cash flow FCF generation Figure 2 shows how much Cisco s free cash flow exceeds its dividend every year since 2011 except for 2013 Over the same time CSCO has generated a cumulative 41 billion in FCF 24 of market cap while paying out just 21 billion in dividends
Companies with strong free cash flow provide higher quality dividend yields because we know the firm generates the cash to support its dividend On the flip side dividends from companies with low or negative free cash flow cannot be trusted as much because they may be financing the dividend with debt or cash on the balance sheet
Figure 2 Cisco Systems CSCO Free Cash Flow vs Dividends
Sources New Constructs LLC and company filings
CSCO Appears Undervalued in Light of Strong Fundamentals
At the current price of 33 share CSCO has a price to economic book value PEBV ratio of 0 8 This ratio means the market expects CSCO s NOPAT to permanently decline by 20 from current levels Such expectations seem overly pessimistic given CSCO s position in the growing global IT sector and its long term track record of NOPAT growth
Even if CSCO never grows profits from current levels the company s economic book value or the no growth value of the firm is 43 share 30 upside from the current valuation
If CSCO can maintain TTM NOPAT margins 21 and grow NOPAT by just 3 compounded annually over the next decade the stock is worth 50 share today 52 upside from the current valuation Meaningful upside potential coupled with CSCO s current 3 5 dividend yield provides investors with an attractive risk reward opportunity
Impacts of Footnotes Adjustments and Forensic Accounting
Our Robo Analyst technology enables us to perform forensic accounting with scale and provide the research needed to fulfill fiduciary duties In order to derive the true recurring cash flows an accurate invested capital and a real shareholder value we made the following adjustments to Cisco Systems 2016 10 K
Income Statement we made 2 6 billion of adjustments with a net effect of removing 371 million in non operating income 1 of revenue We removed 1 1 billion related to non operating expenses and 1 5 billion related to non operating income See all adjustments made to CSCO s income statement here
Balance Sheet we made 105 billion of adjustments to calculate invested capital with a net decrease of 38 billion The most notable adjustment was 19 billion 20 of reported net assets related to goodwill See all adjustments to CSCO s balance sheet here
Valuation we made 108 billion of adjustments with a net effect of increasing shareholder value by 34 billion The largest adjustment to shareholder value was 71 billion of excess cash This adjustment represents 42 of CSCO s market value
This article originally published on April 27 2017
Disclosure David Trainer Kyle Guske II and Kenneth James receive no compensation to write about any specific stock style or theme |
XOM | ExxonMobil To Export Qua Iboe Crude Via Alternate Pipeline | ExxonMobil Corporation NYSE XOM is reportedly chalking out a plan to export Qua Iboe crude oil through an alternate pipeline while repairing the main export line that was damaged in July Notably the above mentioned crude oil is Nigeria s largest export stream However the crude oil grade has been under force majeure since mid July when the company detected an irregularity in the subsea pipeline system In fact the company discovered significant damage later and estimated repair works spanning over a period of about one to two months However both ExxonMobil and the Qua Iboe terminal refused to divulge specific details about these developments Nigerian oil production continues to be plagued by militant action since the beginning of this year In fact Nigerian state oil company NNPC observes that pipeline attacks have taken out about 700 000 barrels per day bpd from production which is usually over 2 million bpd Moreover other pipelines like crude oil streams Forcados and Brass River are under force majeure while Bonny Light and Escravos exports have been hindered by pipeline closures Though ExxonMobil disagreed to any militant involvement in the problem on the Qua Iboe pipeline the Niger Delta Avengers claimed an attack on the 48 pipeline just days before the force majeure was announced According to the sources the repairs works would take months which has prompted ExxonMobil to try to export via a second smaller pipeline that also feeds the platform ExxonMobil currently carries a Zacks Rank 3 Hold Some better ranked players from the energy sector include Sasol Ltd NYSE SSL Enbridge Inc NYSE ENB and Total SA TO TOT Each of these stocks sports a Zacks Rank 1 Strong Buy |
XOM | 5 Best Oil Stocks To Buy Today | U S oil futures have been very volatile in 2016 with prices recovering from a 12 year low of 26 21 a barrel in February to 50 barrel mark in early June and then slipping again to under 40
While factors like Canadian wildfires Nigerian outages disruptions production issues in Venezuela and a strike by Kuwaiti oil workers contributed to the jump in prices earlier this year that saw the benchmark recover significantly these issues have largely vanished from the market As of now overproduction of crude and a glut of refined products keep the commodity under pressure
At over 520 million barrels current crude supplies are up 14 from the year ago period and are at the highest level during this time of the year As it is improvement in oil fundamentals remain fragile with the existing stocks of refined product inventories gasoline and distillate remaining at their maximum seasonal levels in at least 20 years despite healthy demand Piling on the misery is the Baker Hughes report revealing a steady rise in the U S oil rig count and pointing to the resurgence in shale drilling activities
A number of major industry players including Exxon Mobil Corp NYSE XOM Royal Dutch Shell LON RDSa plc and BP plc NYSE BP have reported sub standard second quarter numbers as lower energy prices take a toll
But over the past few trading days West Texas Intermediate WTI crude futures have surged around 10 to top 45 a barrel on renewed expectations of a production freeze from the 14 member OPEC bloc and Russia However several analysts have expressed skepticism over this mini rally pointing to the last such attempt made in April that failed spectacularly
Is now the time to be buying energy stocks
While record high inventories and robust production could still push the commodity to the depths of multiyear lows signs are emerging that oil prices are likely to stabilize and gradually pick up Not only is global demand expanding but energy companies have significantly scaled back on plans to explore for and bring out more oil This should lead to lower future production and supply demand rebalancing
However not all oil stocks are the same In fact one needs to have an appetite for risk in order to invest in the energy sector For savvy investors though there are opportunities to earn big returns
How to Identify the Outperformers
With a wide range of energy firms thronging the investment space it is by no means an easy task for investors to arrive at stocks that have the potential to deliver attractive returns While it is impossible to be sure about such outperformers this is where the Zacks Rank which justifies a company s strong fundamentals can come in really handy
Finally the chosen ones have less than or equal to B Here V stands for Value G for Growth and M for Momentum and the score is a weighted combination of these three scores Such a score allows you to eliminate the negative aspects of stocks and select winners However it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score
Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank 1 Strong Buy or 2 Buy offer the best upside potential
5 Stocks to Invest In
Murphy USA Inc NYSE MUSA Murphy USA is a retailer of gasoline products and convenience store merchandise primarily in the US
Zacks Rank 1
VGM Score A
Independence Contract Drilling Inc NYSE ICD Houston TX based Independence Contract drilling offers land drilling services for oil and natural gas producers primarily in the U S
Zacks Rank 2
VGM Score A
PBF Logistics L P NYSE PBFX Parsippany NJ based PBF Logistics operates refined petroleum products storage and transporting facilities
Zacks Rank 2
VGM Score A
McDermott International Inc NYSE MDR Incorporated in 1959 Houston TX based McDermott International is an engineering and construction company solely focused on the offshore oil and gas business
Zacks Rank 2
VGM Score B
Contango Oil Gas Co NYSE MCF Contango Oil Gas Co is a Houston TX based operator that explores develops exploits and acquires crude oil and natural gas properties in the onshore Texas Gulf Coast and Rocky Mountain regions of the U S
Zacks Rank 2
VGM Score B
Bottom Line
With crude prices picking up steam this is the perfect time to indulge in some energy stocks to make sure your portfolio is perfectly oiled up While we keep our fingers crossed for a profitable second half let these hot bets with their strong ranks and VGM Scores spell magical returns for you |
PCG | PG E files for Chapter 11 bankruptcy | California utility owner PG E NYSE PCG is preparing to name longtime turnaround specialist James Mesterharm as its chief restructuring officer as it filed for Chapter 11 bankruptcy protection due to crippling wildfire liabilities On Monday the California Public Utilities Commission approved PG E s plans to tap up to 6B in so called debtor in possession financing to help it operate while under bankruptcy protection Now read |
PCG | PG E Files for Bankruptcy While Facing Billions in Fire Damages | Bloomberg A series of devastating wildfires that killed more than 100 people and scorched hundreds of thousands of acres in California over the course of two years just brought one of the nation s largest utilities to its knees
NYSE PG E Corp California s biggest power company filed for Chapter 11 bankruptcy in Northern California bankruptcy court as investigators probe whether its equipment ignited the deadliest fire in state history The San Francisco based company listed more than 50 billion in estimated liabilities A Chapter 11 filing allows a company to keep operating while it works out a plan to turn the business around and pay off creditors
California s wildfires have in the past saddled utilities with millions of dollars in damages but never have the blazes exacted such a massive financial toll from a company creating one of the country s largest utility bankruptcies of all time Since November s Camp fire which destroyed the town of Paradise PG E has seen about three fourths of its market value wiped out its chief executive officer leave its bonds plunge to junk status and estimates of its fire liabilities swell to more than 30 billion
The only time the company s ever faced such dire financial straits was during the 2001 energy crisis when it was forced to place its utility unit in bankruptcy protection
The utility giant s financial crisis had some of the biggest names in the investment world working up last minute financing packages that would rescue the company from insolvency to no avail A consortium including Paul Singer s Elliott Management Corp was said to have sent a proposal to PG E backed by 4 billion of bonds that could convert into shares At least one other group that included Ken Griffin s Citadel LLC and Leon Black s Apollo Global Management LLC was said to be pitching a rival plan
PG E s demise serves to underscore the increasing vulnerability utilities face to natural disasters such as wildfires and hurricanes that are becoming more extreme That s especially the case in California where state law holds utilities liable for damages even if they aren t found to be negligent
While the company s been cleared of fault for the deadliest of the wildfires that devastated California s wine country in 2017 investigators have tied PG E s equipment to more than a dozen of the other fires and are looking at its power lines as a possible ignition source for the Camp Fire which killed 86
State officials including Governor Gavin Newsom had said it would be in the state s best interest to keep the utility healthy and financially viable PG E is considered a linchpin in helping achieve California s ambitious climate goal of getting all its electricity from carbon free sources by 2045 At the same time Newsom chose not to take measures drastic enough to avoid a bankruptcy filing and regulators actually began a process to evaluate whether to break up or take over the utility
A bankruptcy will probably result in higher bills for customers because it will be more expensive for PG E to borrow the money it needs to make infrastructure investments and keep the lights on The company supplies natural gas and electricity to about 16 million people in Northern and Central California PG E said Jan 22 it expects the bankruptcy to take about two years to resolve and arranged 5 5 billion to fund its operations during the process
With utilities bankruptcies take multiple years Kit Konolige an analyst for Bloomberg Intelligence said in an interview before the filing There is no such thing as a quick utility bankruptcy And it creates a lot of uncertainty for everybody involved |
XOM | Amid hacking row pressure builds on Trump to soften pro Russia rhetoric | By Phil Stewart WASHINGTON Reuters President elect Donald Trump is finding himself caught between his desire to improve relations with Russia and fellow Republicans who are pushing for a harsher response to what American spy agencies say was the Kremlin s meddling in the U S presidential election The tacit acknowledgement on Sunday by his incoming chief of staff Reince Priebus that Russia was behind the hacking of Democratic Party organizations suggests that Trump s maneuvering room could be shrinking Trump has long been dismissive of the U S intelligence conclusion that Russia was behind the election hacks which Russia has denied or was trying to help him win the November ballot saying the intrusions could have been carried out by China or a 400 pound hacker sitting on his bed But following a report from U S intelligence agencies last week blaming Russian President Vladimir Putin Russia experts say Trump will face growing calls for a stiff military diplomatic economic and perhaps also covert response after his Jan 20 inauguration The new U S administration will need to adopt a significantly tougher line said Nile Gardiner of the Heritage Foundation a conservative think tank in Washington that is an influential voice in Trump s transition team Republicans in Congress wary of Trump s push for detente with Putin could pressure the new president to withhold the thing the Russian leader wants most a rapid easing of the economic sanctions imposed after Russia s 2014 annexation of Ukraine s Crimea and its support for separatists in eastern Ukraine the Russia experts said U S intelligence agencies say that since the election Russian spies have turned to hacking other individuals and organizations including prominent think tanks in what analysts think is an effort to gain insights into future U S policies Washington s Brookings Institution which is headed by prominent Russia expert Strobe Talbott received a big wave of attacks the day after the election but there is no reason to believe its systems have been compromised said David Nassar the think tank s vice president for communications SHOWDOWN WITH CONGRESS Republican Senator Lindsey Graham said he and fellow Republican John McCain the chairman of the Senate Armed Services Committee would introduce legislation with stronger sanctions than the ones now in place We re going to introduce sanctions that will hit them in the financial sector and the energy sector where they re the weakest Graham told NBC television s Meet the Press Retired Marine General James Mattis the nominee for secretary of defense who will face a Senate confirmation hearing on Thursday is expected to advocate a stronger line against Moscow than the one Trump outlined during his election campaign That could put him at odds with Trump s national security adviser retired Army Lieutenant General Michael Flynn who has had warmer relations with Putin s government and with Rex Tillerson the nominee for secretary of state who as CEO of ExxonMobil NYSE XOM had extensive business ties with Russia If Mattis does push for a tougher approach to Russia that could empower U S advocates for strengthening the American military presence in Europe That could include reinforcing U S troops in the Baltic states and Poland analysts say NATO already plans to deploy 4 000 additional troops planes tanks and artillery to the three former Soviet republics in the Baltics and Poland this year There is nervousness about Trump among Europeans at NATO said one European diplomat Any grand bargain with Russia would fundamentally change NATO s course and threaten Europe with disunity the diplomat said But we don t expect that NATO is seeking to reassure Baltic allies and the United States is a big part of the deterrent Some advocates of a sterner response to the Russian hacking say it should include cyber counterattacks perhaps by leaking financial information embarrassing to some of Putin s aides and close associates So far the Obama administration has refrained from such action at least publicly for fear that it could lead to an escalating cyberwar that could threaten critical infrastructure such as financial transactions and energy transmission TRUMP RUSSIA POLICY STILL A BLUR Although Trump has said the nation needed to move on to bigger and better things following the U S disclosure of alleged Russian hacking it appears that Republican and Democratic lawmakers are unlikely to drop the issue anytime soon McCain told NBC he wanted to create a select committee to investigate the Russian hacking if he can convince the Republican controlled Senate s leaders to charge their minds In the meantime he said key Senate committees including Armed Services and Intelligence will investigate Experts say the close scrutiny of Russia s actions will come just as Trump s administration starts to craft a comprehensive strategy on the former Cold War foe It is likely to be weeks or longer before a clear sense of Trump s actual Russia strategy comes into view
Until there s a team in place until there s a little more organization I tend to think we re not going to have clear answers said Heather Conley a former deputy assistant secretary of state for Europe now at the Center for Strategic and International Studies |
XOM | Kerry warns of authoritarian populism takes jab at Trump tweets | By Yeganeh Torbati and Lesley Wroughton WASHINGTON Reuters U S Secretary of State John Kerry on Tuesday warned of the dangers of authoritarian populism and offered a thinly veiled critique of Donald Trump s prolific use of Twitter saying it allowed the president elect to avoid accountability In his most pointed public comments about Trump since the Nov 8 presidential election Kerry also suggested that the president elect s Cabinet nominees were getting a free pass from Congress for failing to submit tax returns and other documentation before their Senate confirmation hearings Every country in the world better start worrying about authoritarian populism and the absence of substance in our dialogue Kerry told a Washington forum If policies are going to be made in 140 characters on Twitter and every reasonable measurement of accountability is being bypassed and people don t care about it we have a problem Kerry said As an example of the absence of substance in the political debate he said climate change was given short shrift during the campaign between Trump and Democratic nominee Hillary Clinton He contrasted his own vetting for secretary of state and the paperwork he had to provide with exceptions he said are being made for Trump Cabinet nominees before their confirmation hearings In December Senate Foreign Relations Committee chairman Bob Corker said the panel had not asked Rex Tillerson Trump s choice for secretary of state to provide his tax returns which Corker said was in accordance with precedent Tillerson the former chairman and chief executive of ExxonMobil Corp N XOM has not submitted tax returns but his financial disclosure and ethics agreement has been made public Kerry a former senator and 2004 Democratic presidential nominee who became President Barack Obama s secretary of state in 2013 said it is quite amazing when you think the hoops I had to jump through with respect to papers submitted documentation submitted and tax returns Suddenly that s not as important Asked if he believed Trump s nominees were getting a free pass Kerry chuckled and dodged the question Walter Shaub director of the federal Office of Government Ethics said in a letter to senators last week that he had great concern about the hearing schedule for Trump nominees who had not completed the ethics review process and said it would be cause for alarm if the Senate were to go forward with hearings on nominees whose reports OGE has not certified With 10 days to go before Trump takes office Kerry said there had been few high level contacts between current State Department officials and Trump s transition team Asked about the transition at a forum at the nonpartisan U S Institute of Peace Kerry said It s going pretty smoothly because there s not an enormous amount of it There are some people who have been in the building for a period of time but you know quite candidly I think there has not been a lot of high level exchange at this point in time Kerry said Kerry said he had not yet met with Tillerson but expected to do so soon Kerry and Tillerson spoke last month by telephone according to the State Department A spokeswoman for the Trump transition team said she had no comment on Kerry s remarks Tillerson s Senate confirmation hearing is scheduled for Wednesday and will be closely watched in part due to concerns about his relationship with Russia as ExxonMobil s top executive
Trump has called for better ties with Russia while some fellow Republicans in Congress are pushing for a harsher response to what American intelligence agencies have concluded was Kremlin meddling in the presidential election |
XOM | Senate panel poses light questions for homeland nominee | Investing com Secretary of Homeland Security nominee Gen John Kelly said during confirmation hearings today that economic opportunity in the U S and violence in Latin America are still the primary motivating factors that drive most illegal immigration to the U S
A former military commander who headed American operations responsible for Latin America Gen Kelly told Senators he had worked with the presidents of Latin American countries and South American countries and noted that Honduras had made exceptional progress of late in reducing drug violence there
To contain illegal immigration Gen Kelly said that the Trump administration would rely heavily on advanced information technology The administration wants to build a way to halt illegal aliens from crossing the border without permission from U S authorities But Kelly said that drones aircraft and other data and imaging technologies would be essential to accomplishing the goal
Thus far in the hearing the only controversy came from rabble rousing Sen Claire McCaskill D Mo raised issue of cybersecurity and read from last week s declassified report on the alleged hacking of the Democratic National Committee s computers and the unsecured G mail account of Hillary Clinton aide John Podesta Otherwise questioning was cordial and non controversial and gentlemanly in the old fashioned sense of that word and one senator even reminisced with the nominee about their recent sit down visit in his Senate office
The hearing for Attorney General nominee Sen Jeff Sessions R Ala also was proceeding without major controversy today with no indications of an adverse or no vote on the committee handling his nomination contrary to promises of progressive activists Sen Al Franken D Minn a former late night TV comedian offered the most difficult questioning during today s meeting
ExxonMobil Corporation NYSE XOM CEO Rex Tillerson sits for his confirmation hearing on Wednesday for Secretary of State Five other hearings for nominees are planned this week
President Obama is giving his farewell speech this evening in Chicago as his administration winds down operations after two troubled terms
I don t think he was a good president said Gov Matt Bevin R Ky in a TV interview today For all the hype and all the fluff it has not been a good eight years in America Now there s a chance to chart a new course |
XOM | Tillerson Defeating ISIS is top U S foreign policy priority | Investing com Stock market indexes were up slightly this morning on Wall Street as ExxonMobil NYSE XOM CEO Rex Tillerson testified before the U S Senate during his nomination hearing for the position of Secretary of State in the Trump White House and declared that destroying ISIS was the top foreign policy priority of the new administration
The Dow was at 19 923 83 up nearly 50 points during the testimony The Nasdaq Composite also increased to 5552 06
Tillerson called an inspired choice as a nominee by one of the Senators has extensive experience overseas as a leader in industry He has brokered deals on drilling rights in Russia and is said to have 180 million in assets now in a blind trust from his career as chief executive officer of the oil producer
During testimony he stated that the defeat of ISIS was the top priority of the Trump administration s foreign policy team American leadership must be renewed and reasserted said Tillerson who was trained as an engineer We have many assets upon which to build Our adversaries have been emboldened by our inaction
Referring to the failed Obama policies in the Middle East Tillerson said that America has allowed a red line to become a green light overseas
We are the only global superpower capable of shaping the world for good said Tillerson Our actions and inactions have triggered a host of unintended consequences like the rise of ISIS and the war in Syria and continued combat in Afghanistan
Tillerson a former president of the volunteer group the Boy Scouts of America further stated that the Boy Scout oath must undergird our foreign policy We must be honest about radical Islam which poses a grave risk to our nation The Internet provides a way for ISIS and other radical Islamic groups to spread their ideology Tillerson said Any nation that aids or abets ISIS must face consequences for aiding and abetting evil
Russia and China are also foreign policy challenges for the U S he said
Russia seeks respect and relevance on the global stage said Tillerson its recent actions have not regarded American interests
Tillerson said that if he was the Secretary of State when Russia invaded the Crimea he would have advised supporting Ukrainian forces with intelligence and military supplies to defend its rights
Sen Marco Rubio R Fla a failed candidate for president last year asked Tillerson about the alleged cyberhacking of Democratic operations during last year s presidential election
I did read the interagency report released on Jan 6 That report clearly is troubling said Tillerson The threat of cyberattacks is a broad issue Those are coming from many corners of the world |
XOM | Wall St edges higher as Trump due to speak | Investing com U S stocks edged higher early Wednesday ahead of Trump s news conference The DJI was up 0 39 at 10 45 ET after closing lower overnight The S P 500 added 0 13 The tech heavy Nasdaq composite gained 0 16 Thedollar index regained the 102 mark as Treasury yields edged lowerOil pared gains as official U S crude stocks rose more than expected Oil stocks were higher as Exxon Mobil NYSE XOM put on 0 51 to 86 37 |
XOM | Secretary of State nominee Tillerson veers from Trump on key issues | By Patricia Zengerle and Yeganeh Torbati WASHINGTON Reuters Secretary of State nominee Rex Tillerson expressed views on Wednesday at odds with President elect Donald Trump s positions on key foreign policy issues like nuclear proliferation trade deals climate change and relations with Mexico In a nine hour Senate confirmation hearing the former chief executive of oil company Exxon Mobil NYSE XOM said he favored maintaining U S sanctions against Russia for now and that NATO allies were right to be alarmed by Moscow s growing aggression Russia dominated much of the hearing because of concerns by Democrats and Republicans over Moscow s interference in the U S presidential election and its 2014 annexation of Crimea from Ukraine and involvement in the Syrian civil war Questions soon moved to the threat posed by Islamic State China s behavior in the South China Sea human rights and Tillerson s ability to make a clean break from a career at Exxon Mobil to become America s top diplomat Tillerson said his differences with Trump on some major issues would not necessarily put him at loggerheads with the White House He said everyone in Trump s Cabinet would have the chance to discuss issues and the president will decide He described himself as open and transparent In a stark departure from Trump Tillerson said it would not be acceptable for some U S allies to acquire nuclear weapons He also did not see the need for a Muslim registry saying he did not support targeting any particular group Asked by Democratic Senator Edward Markey about Trump s comments in interviews he would not oppose U S allies including Japan obtaining nuclear weapons Tillerson replied I do not agree Tillerson said he did not oppose the Trans Pacific Partnership trade deal which Trump has criticized but acknowledged the negotiated deal may not serve all U S interests Tillerson however left room for broad reversals or changes to Obama administration policies in line with Trump s positions including trade with Cuba and the Iran nuclear deal which he said ought to undergo a full review The hearing before the Senate Foreign Relations Committee was interrupted sporadically by protesters Tillerson 64 is expected to be confirmed by the Republican controlled Senate OPEN FRANK DIALOGUE WITH MOSCOW Tillerson refused to call Russian President Vladimir Putin a war criminal and kept the door open to a possible change in U S sanctions policy against Russia saying he had not seen classified information on Russian meddling I would leave things in the status quo so we are able to convey this can go either way Tillerson said suggesting open and frank dialogue with Moscow to better understand its intentions He blamed Russia s aggression toward Ukraine since 2014 on an absence of American leadership and said the United States should have taken stronger actions to deter Russia I m advocating for responses that will deter and prevent further expansion of a bad actor s behavior he said Tillerson said it was a fair assumption Putin was aware of Russian efforts to interfere in the U S election He said he had not discussed Russia policy with Trump which Democratic Senator Robert Menendez said was pretty amazing In a tense exchange Republican Senator Marco Rubio pushed Tillerson on whether he believed Putin was a war criminal in reference to Russia s military actions in support of Syria s government I would not use that term Tillerson said adding Those are very very serious charges to make and I would want to have much more information before reaching a conclusion Rubio who ran against Trump for the Republican presidential nomination shot back There s so much information out there It should not be hard to say that Vladimir Putin s military has conducted war crimes in Aleppo referring to the Syrian city recently retaken by government forces backed by Russia He added I find it discouraging your inability to cite that which I think is globally accepted Tillerson sidestepped questions on human rights declining to condemn countries like Saudi Arabia and the Philippines for rights abuses saying he wanted to see the facts first Rubio told reporters later that he was unsure he could vote for Tillerson As one of 11 Republicans on the 21 member panel his support is key to Tillerson winning the committee s backing IRAN DEAL REVIEW Tillerson said he would recommend a full review of the nuclear deal with Iran reached with the United States and world powers He did not call for an outright rejection of the 2015 accord in which Tehran agreed to curtail its nuclear program in exchange for relief from crippling economic sanctions Trump has made contradictory statements about the deal and has threatened to dismantle it Tillerson said China should be denied access to islands it had built in the contested South China Sea He added his approach to dealing with North Korea which recently said it was close to carrying out its first test of an intercontinental ballistic missile would be a long term plan based on sanctions and their proper implementation Asked if he could make unbiased decisions after his time at Exxon Mobil the world s largest publicly traded oil producer he said he would act in America s interests Tillerson dodged a direct question on whether he believed climate change was caused by human activity The risk of climate change does exist and the consequences of it could be serious enough that action should be taken he said adding the ability to predict the effect of greenhouse gas was very limited Trump has called global warming a hoax perpetrated by China and has threatened to quit the Paris climate accord a global agreement to curb emissions Tillerson called Mexico a long standing neighbor and friend of this country Trump has said he will build a wall on the Mexican border and in his 2015 presidential announcement speech described Mexican migrants to the United States as drug runners and rapists LOBBYING Tillerson s responses were calm and measured without any obvious reliance on notes He opposed U S sanctions against Russia in 2014 over its annexation of Crimea from Ukraine because he said he thought they would be ineffective On Wednesday he said he never personally lobbied against sanctions and emphasized that he was not aware of Exxon Mobil directly doing so Tillerson later acknowledged he spoke to U S Treasury Secretary Jack Lew regarding gaps between American and European sanctions on Russia
Democratic Senator Chris Murphy vigorously challenged Tillerson on the issue saying he called a U S senator to express concerns over the measures which likely constitutes lobbying Exxon lobbied Congress regarding sanctions against Russia following the annexation of Crimea The lobbying directly related to energy matters according to regulatory filings |
XOM | Trump s secretary of state pick says China should be barred from South China Sea islands | By David Brunnstrom and Matt Spetalnick WASHINGTON Reuters U S President elect Donald Trump s nominee for secretary of state has set a course for a potentially serious confrontation with Beijing saying China should be denied access to islands it has built in the contested South China Sea In comments expected to enrage Beijing Rex Tillerson told his confirmation hearing on Wednesday before the U S Senate Foreign Relations Committee that China s building of islands and putting military assets on those islands was akin to Russia s taking Crimea from Ukraine Asked whether he supported a more aggressive posture toward China he said We re going to have to send China a clear signal that first the island building stops and second your access to those islands also is not going to be allowed The former Exxon Mobil Corp N XOM chairman and chief executive did not elaborate on what might be done to deny China access to the islands it has built up from South China Sea reefs equipped with military length airstrips and fortified with weapons Trump s transition team did not immediately respond to a request for specifics on how China might be blocked from the artificial islands China claims most of the energy rich waters through which about 5 trillion in ship borne trade passes every year Neighbors Brunei Malaysia the Philippines Taiwan and Vietnam also have claims When asked repeatedly about Tillerson s comments on blocking access to islands China s foreign ministry spokesman Lu Kang said he couldn t make any guesses as to what Tillerson was referring to and would not answer hypothetical questions China s right to carry out normal activities in its sovereign territory in the South China Sea is indisputable Lu said speaking at a daily briefing on Thursday He did not elaborate Tillerson also said Washington needed to reaffirm its commitment to Taiwan which Beijing regards as a renegade province but stopped short of Trump s questioning of Washington s long standing policy on the issue The United States switched diplomatic recognition from Taiwan to China in 1979 acknowledging that China takes the position that there is one China and Taiwan is part of it But the United States is also Taiwan s biggest ally and arms supplier I don t know of any plans to alter the one China position Tillerson said Tillerson said he considered China s South China Sea activity extremely worrisome and that it would be a threat to the entire global economy if Beijing were able to dictate access to the waterway He blamed the current situation on what he termed an inadequate U S response The failure of a response has allowed them just to keep pushing the envelope on this Tillerson said The way we ve got to deal with this is we ve got to show back up in the region with our traditional allies in Southeast Asia he said Democratic President Barack Obama s administration conducted periodic air and naval patrols to assert the right of free navigation in the South China Sea These have angered Beijing but seeking to blockade China s man made islands would be a major step further and a step that Washington has never raised as an option Under his strategic pivot to Asia Obama has increased the U S military presence in the region and Trump has vowed a major naval buildup Tillerson s words also went beyond Trump s own tough rhetoric on China Regional military sources said while the U S navy had extensive capabilities in Asia to stage blocking operations with ships submarines and planes any such move against China s growing naval fleets would risk dangerous escalations RELUCTANT TO CHALLENGE Obama has sought to forge a united front in Southeast Asia against China s pursuit of its territorial claims but some allies and partners who are rival claimants have been reluctant to challenge Beijing Tillerson called China s South China Sea island building and declaration of an air defense zone in the East China Sea it contests with Japan illegal actions They re taking territory or control or declaring control of territories that are not rightfully China s he said The response was muted from the Philippines a traditional U S ally that last year won an international arbitration case that included a challenge to China s island building within its 200 nautical mile exclusive economic zone These are not policies yet and let us wait if they will implement what was said in the hearing Defense Secretary Delfin Lorenzana told reporters on Thursday Let s wait until Trump is in office His comments reflect the sharp change in Manila s approach to China under new President Rodrigo Duterte who wants good diplomatic and business ties with Beijing and says challenging it is provocative and pointless He makes no secret of his lack of trust in the Obama administration and has chided it for what he considers inaction in the South China Sea Tillerson also said the United States could not continue to accept empty promises China had made about putting pressure on North Korea over that country s nuclear and missile programs He said his approach to dealing with North Korea which recently declared it is close to carrying out its first test of an intercontinental ballistic missile would be a long term plan based on sanctions and their proper implementation Asked if Washington should consider imposing secondary sanctions on Chinese entities found to be violating existing sanctions on North Korea Tillerson said If China is not going to comply with those U N sanctions then it s appropriate for the United States to consider actions to compel them to comply He accused China of failing to live up to global agreements on trade and intellectual property echoing past remarks by Trump who has threatened to impose high retaliatory tariffs on China But Tillerson also stressed the deeply intertwined nature of the world s two biggest economies
We should not let disagreements over other issues exclude areas for productive partnership he said |
CSCO | Staggering Results Of Trading Options To Profit From The Cloud Revolutio | LEDE
What we re going to look at could feel uncomfortable not in that it s difficult but rather that it s a glaring example of how the top 0 1 have been dissecting retail traders for decades But its objective data this is how option professionals find the edge they require to keep going
PREFACE
Arista Networks Inc NYSE ANET is the young technology company that has burst onto the seen as the first legitimate competitor for Cisco Systems Inc NASDAQ CSCO and it is rapidly gaining market share in various areas in particular the high speed data center switching market
It s these switches and routers that power every computer in every cloud and Cisco Systems Inc NASDAQ CSCO and Arista Networks Inc NYSE ANET are in a brutal competition
Arista Networks Inc NYSE ANET
When trading options we need to answer three critical questions
What to trade
When to trade
When to close the trade
Arriving at an answer to these questions has had staggering implications It s also been a disaster for those that have not been prepared
What to trade Let s examine selling out of the money puts spread in Arista Networks Inc
When to trade Let s now compare examine selling the weekly options versus the monthly options
Look while trading partners pundits or just general social media gurus may belly ache and proclaim that the difference between trading a weekly option 4 times a month or a monthly option once a month is no different they are wrong and they will cost you money
It might have felt like a trivial difference to trade weekly or monthly options but it isn t trivial at all Selling a weekly out of the money put spread in ANET over the last two years has returned 44 7 while simply switching to the monthly option has returned 102 It really does matter and it s different for each stock
Now that we know the what to trade and the when to trade we must objectively answer when to close
Reduce Risk
A short put spread has downside protection but it s one of the most common questions traders have with selling option premium when do you close the trade
It turns out that if a put spread was sold for say 2 00 closing that put spread out once it drops in value to 0 30 has had a large impact on results for Arista Networks Inc Here s how we account for our limit gain
And now the results
We told you it might feel uncomfortable the fact that some people have access to this information and others don t
CONSISTENT
Skepticism is natural trading isn t a game and that means we have to prove to ourselves that this isn t luck or happen stance
What we need to do now is look at this short put over various time periods We see that it has worked over the last two years now let s look at the last year
A 29 7 return when we switched to monthly options and followed a rule of when to close turned into an 81 2 gain
It s not a magic bullet it s just easy access to objective data
Finally we look at this short put spread over the last six months these are the results
WHAT JUST HAPPENED
We don t mean to make you feel uncomfortable but this is it the difference between the professionals and the amateurs This is how people profit from the option market it s preparation not luck
To see how to do this for any stock or ETF and for any strategy with just the click of a few buttons we welcome you to watch this 4 minute demonstration video
Thanks for reading
Risk Disclosure
Past performance is not an indication of future results
Trading futures and options involves the risk of loss Please consider carefully whether futures or options are appropriate to your financial situation Only risk capital should be used when trading futures or options Investors could lose more than their initial investment
Past results are not necessarily indicative of future results The risk of loss in trading can be substantial carefully consider the inherent risks of such an investment in light of your financial condition |
XOM | Eni Reportedly Inks Deal To Sell Stake In Area 4 To ExxonMobil | According to sources Italian oil firm Eni SpA TO E has concluded the deal related to the sale of a multi billion dollar stake in its planned Mozambique liquefied natural gas development to ExxonMobil Corporation NYSE XOM Interestingly neither has an official announcement been made as yet nor is likely to be made in several months to come at ExxonMobil s behest Eni too refused to reveal further details Eni has already made a substantial discovery of offshore gas reserves in Area 4 The huge discovery requires a giant land based LNG export plant with proximity to the Asian and the Middle Eastern growing markets in order to become a potentially highly rewarding project The long running discussion to get a partner with huge spending power has been delayed due to differences over valuations owing to decline in oil and gas prices Eni sold 20 of its Area 4 license to China s CNPC for 4 2 billion in 2013 However oil and gas prices have fallen by more than 50 since then In Oct 2015 ExxonMobil was awarded three offshore exploration license blocks located south of Eni s discoveries This gave a new dimension to development prospects of the area ENI MI ENI SPA ADR Price Initially Eni did not intend to sell more than 10 15 of its stake in Area 4 permit where it discovered 85 trillion cubic feet of gas However the company is reconsidering its decision now and has raised the possibility of it selling about 25 stake in the permit After much contemplation both parties have finally reached an agreement According to the deal ExxonMobil would get its preferred operating stake in the onshore LNG export plant while Eni would retain control over the Area 4 gas fields feeding it Eni is anticipated to export gas as LNG from at least one floating offshore platform in the Coral field development in Area 4 However it will mainly concentrate on the larger land based plants Notably ExxonMobil will have no share from the Coral field and Eni will sell LNG from the Phase I development of this field to BP LON BP Eni currently holds a Zacks Rank 2 Buy Other well ranked players from the energy sector are Enbridge Inc TO E and Total SA TO TOT Both these stocks sport a Zacks Rank 1 Strong Buy |
PCG | S P cuts rating on PG E unit in third such cut this month | Reuters S P cut its rating on PG E Corp s N PCG Pacific Gas Electric Co unit on Wednesday making it the third such cut this month after the unit missed interest payments on its 2040 senior notes The credit rating agency downgraded the unit s rating to D from CC after Pacific Gas and Electric failed to make the 21 6 million interest payment due on Tuesday as the company planned to seek Chapter 11 bankruptcy protection The latest cut comes two days after both Fitch and S P downgraded PG E and its Pacific Power Gas Co unit in the face of massive claims stemming from deadly wildfires PG E which provides electricity and natural gas to 16 million customers in northern and central California faces widespread litigation government investigations and liabilities that could potentially exceed 30 billion because of the fires The most recent fire last November killed at least 86 people in the deadliest and most destructive blaze in California history San Francisco based PG E is working on lining up roughly 5 5 billion in so called debtor in possession financing to help operations during bankruptcy proceedings |
PCG | PG E shareholder BlueMountain says bankruptcy unnecessary | Reuters PG E Corp N PCG shareholder BlueMountain Capital Management LLC on Thursday said the U S power company s decision to file for bankruptcy was unnecessary arguing that there was evidence the company was solvent At the very least the board should wait to take its case to shareholders at the upcoming annual meeting the asset manager said in a letter to PG E s board PG E s annual shareholders meeting is scheduled to be held on May 22 Earlier this week the biggest U S power utility by customers said it was preparing for Chapter 11 bankruptcy protection as soon as this month amid pressure from potentially crushing liabilities linked to California s catastrophic wildfires in 2017 and 2018 The asset manager said the utility should consider asset sales or alternative financing if needed BlueMountain Capital Management held a 0 8 percent stake in PG E as of Sept 30 2018 according to Eikon data from Refinitiv
Shares of the utility which have plummeted more than 52 percent this week were up 3 8 percent before the bell |
XOM | Rough start for U S Republicans in first day of Trump era Congress | By Richard Cowan and Susan Cornwell WASHINGTON Reuters The Republican led U S Congress had a rough start to its first session of the Donald Trump era on Tuesday after the House of Representatives had to backtrack on a decision to defang an ethics watchdog following a public outcry that included a dressing down from the president elect It was supposed to have been a ceremonious beginning in which lawmakers set plans to enact Trump s agenda of cutting taxes repealing Obamacare and rolling back financial and environmental regulations With Trump set to be sworn in as president on Jan 20 Republicans will control both the White House and Congress for the first time since 2007 But the moment was overshadowed by a an uproar over a surprise move by Republicans in the House of Representatives in a closed door meeting late on Monday to weaken the independent Office of Congressional Ethics which is in charge of investigating ethics accusations against lawmakers Trump who campaigned on a pledge to drain the swamp and bring ethics reform to Washington was not pleased by the timing With all that Congress has to work on do they really have to make the weakening of the Independent Ethics Watchdog as unfair as it may be their number one act and priority he said on Twitter on Tuesday Focus on tax reform healthcare and so many other things of far greater importance The ethics office was created in 2008 following several corruption scandals but some lawmakers have charged in recent years that it has been too quick to investigate complaints from outside partisan groups Lawmakers wanted to have greater control of the watchdog and inserted changes into a broader rules package set to pass when the House convenes on Tuesday Even before Trump s tweet many House Republicans including top leaders had opposed the measure and worried about its ramifications Trump s tweet prompted an emergency meeting and a quick change of course by Republicans It was taken out by unanimous consent and the House Ethics Committee will now examine those issues said AshLee Strong a spokeswoman for House Speaker Paul Ryan OBAMACARE IN SIGHTS As expected Ryan was re elected as speaker on a vote of 239 189 He was first elected speaker in October 2015 after predecessor John Boehner retired following repeated revolts by House conservatives The speaker election was part of the ceremony involved in the first meeting of the 115th Congress as the 435 members of the House of Representatives and a third of the 100 member Senate were sworn in Since his election on Nov 8 Trump has made clear he wants to move swiftly to enact proposals he outlined during the campaign such as simplifying the tax code and slashing corporate tax rates He also promised to make good on a Republican pledge to repeal and replace Democratic President Barack Obama s 2010 signature Affordable Care Act a law better known as Obamacare People must remember that ObamaCare just doesn t work and it is not affordable Trump said on Twitter on Tuesday adding It is lousy healthcare In the first step of a process that could take months Republican Senator Mike Enzi on Tuesday introduced a resolution to provide for the repeal of the law House Republicans were set to clear the decks later for Obamacare repeal by tucking a measure to prevent Democrats from slowing or stopping repeal legislation into a vote on rules governing House procedures But Republicans face a dilemma on a replacement program to provide health insurance to people who do not have a plan at work or cannot afford private coverage Republicans have said it could take years to develop a new program The White House says the law has expanded coverage for 20 million Americans including an estimated 13 8 million people who buy insurance on exchanges many of who receive tax credits to make it affordable If Republicans repeal the Affordable Care Act they ll be hastening the demise of Medicare that millions of seniors rely upon for their basic healthcare needs White House spokesman Josh Earnest said at a news briefing Senate Majority Leader Mitch McConnell did not address Obamacare in remarks on the Senate floor on Tuesday He has said his top priorities for the new Congress were dealing with the massive overregulation he said had been a brake on the U S economy and making changes in the tax code to stop companies from moving jobs out of the country Republicans might use upcoming spending bills funding government agencies to try to kill some environmental and banking regulations Trump also is expected to try to use his executive powers toward that end OBAMACARE DEFENSE Leading Democrats warned of a fierce battle over Obamacare and said they planned to mobilize grassroots support for it Obama is scheduled to meet on Wednesday with congressional Democrats to discuss strategies for fending off the Republican attacks on Obamacare But Senator Charles Schumer in his first floor speech as the top Democrat in the Senate said he is ready to work on some issues with Trump If the president elect proposes legislation that achieves that on issues like infrastructure trade and closing the carried interest loophole for instance we will work in good faith to perfect and potentially enact it Schumer said When he doesn t we will resist Trump s Cabinet nominees were to begin meeting with senators on Tuesday ahead of Senate confirmation hearings Prominent Republican Senator John McCain has warned that Rex Tillerson Trump s choice for secretary of state will have to explain his relations with Russian President Vladimir Putin who McCain has called a thug and a murderer
Tillerson who spent much of his career at Exxon Mobil Corp N XOM has been involved in business dealings in Russia and opposed U S sanctions against Moscow for its incursion into Crimea |
XOM | Exxon Mobil Tillerson agree to cut all ties | Reuters Exxon Mobil Corp NYSE XOM and Rex Tillerson agreed to sever all ties to comply with conflict of interest requirements as the company s former chairman and chief executive awaits confirmation as U S secretary of state If his appointment is confirmed the value of more than 2 million deferred Exxon Mobil shares worth about 182 million at Tuesday s closing price that Tillerson would have received over the next 10 years will be transferred to an independently managed trust the company said in a statement The share awards will be canceled and Tillerson will also surrender entitlement to more than 4 1 million in cash bonuses scheduled to pay out over the next three years and other benefits Exxon Mobil said Separately Tillerson also committed to the State Department that if confirmed he would sell the more than 600 000 Exxon shares he currently owns the company said Exxon said last month its president Darren Woods will become chief executive and chairman in January following the retirement of Tillerson Tillerson could face a rocky confirmation process given concerns among both Democrats and Republicans about his ties to Russia
Exxon stock has gained 6 5 percent since election results of Nov 8 up to Tuesday s close of 90 89 |
XOM | Kerry says U S encouraging Astana talks on Syria as step to peace | By Lesley Wroughton WASHINGTON Reuters The United States is encouraging Syria peace talks being prepared by Russia later this month in the Kazakh capital Astana and hopes they will produce a step toward peace U S Secretary of State John Kerry said on Thursday We re encouraging a meeting in Astana We hope that could produce a step forward Kerry told reporters during his final news conference at the State Department Russian President Vladimir Putin said on Dec 26 that Russia Iran Turkey and Syrian President Bashar al Assad had all agreed to hold the talks in Astana although no date has been set Kerry said he had talked to U N Special Envoy Staffan de Mistura and Russian Foreign Minister Sergei Lavrov and the objective remained to get to Geneva where the real meat of the talks is going to take place But Kerry said a Dec 30 ceasefire brokered by Russia and Turkey had run into difficulties with numerous violations The fighting is continuing it s difficult and the Assad regime seems to be playing the same card that it was playing previously he said After several failed ceasefire attempts brokered by Kerry and Lavrov the United States remained out of the latest Syrian talks It is unclear whether the United States will attend the Astana talks Russia and Iran both back Assad but Turkey a NATO member has long made clear it would prefer that Assad step down Ankara however has moderated its rhetoric on Assad in recent months and Lavrov said all three countries agreed the priority was to fight terrorism rather than to remove the Syrian leader With two weeks left in the Obama administration Kerry said it was unclear what the new administration s approach to foreign policy would be under President elect Donald Trump Nobody can predict what choices this administration is going to make I don t know I don t think you do said Kerry The question a lot of people are asking is Do they know We re going to have to wait and see what choices they make Trump has nominated Rex Tillerson the former head of Exxon Mobil NYSE XOM as secretary of state although it is unclear when his confirmation hearing will take place
While Tillerson appeared to win over Republicans during meeting at the U S Senate on Wednesday Democrats want more time to consider his record especially his ties to Russia |
XOM | Republican senators urge Trump to embrace findings on Russia hacking | By Ginger Gibson WASHINGTON Reuters Two senior Republican senators urged President elect Donald Trump to punish Russia in response to U S intelligence agencies conclusion that President Vladimir Putin personally directed efforts aimed at influencing the outcome of the November election In a joint appearance on NBC s Meet the Press on Sunday Republican Senators Lindsey Graham and John McCain said evidence was conclusive that Putin sought to influence the election a point that Trump has refuted repeatedly by arguing it might be impossible to tell who was responsible In a couple weeks Donald Trump will be the defender of the free world and democracy Graham said You should let everybody know in America Republicans and Democrats that you re going to make Russia pay a price for trying to interfere Both senators said they remain unsure if they will support Trump s pick for secretary of state former Exxon Mobil Corp N XOM Chairman and CEO Rex Tillerson who has been criticized for his close ties to Putin The Senate Foreign Relations Committee is scheduled to hold a hearing on Wednesday to consider Tillerson s nomination Three U S intelligence agencies released a joint report on Friday that concluded that Putin directed efforts to help Trump s electoral chances by discrediting his Democratic rival Hillary Clinton Hackers penetrated the Democratic National Committee s email server and separately stole emails from John Podesta who chaired Clinton s campaign The emails were then posted online and used to embarrass Clinton including by Trump who frequently used the content as political ammunition Russia was trying to undermine public faith in the democratic process damage Clinton making it harder for her to win and harm her presidency if she did the unclassified report said McCain said he supports continued investigations into the hacks We need to come to grips with it and get to the bottom of it and overall come up with a strategy in this new form of warfare that can basically harm our economy harm our elections harm our national security he said Trump whose views on Russia are out of step with his party has repeatedly dismissed claims that the Russians were trying to help him arguing that the charges against Russia are the product of his political opponents trying to undermine his victory On Friday after receiving his intelligence briefing Trump did not squarely address whether he was told of the agencies belief Russia carried out the hacking Instead he said Russia China other countries outside groups and people are consistently trying to break through the cyber infrastructure of our governmental institutions businesses and organizations including the DNC On Saturday Trump wrote on Twitter that having a better relationship with Russia is a good thing
Only stupid people or fools would think that is bad he tweeted We have enough problems around the world without yet another one When I am President Russia will respect us far more than they do now and both countries will perhaps work together to solve some of the many great and pressing problems and issues of the WORLD |
CSCO | iFOREX Daily Analysis February 16 2017 | The U S dollar showed little change against other major currencies on Wednesday despite stronger than expected U S economic data as markets were on hold waiting for the congressional testimony from Federal Reserve Chair Janet Yellen
The dollar was up in early trade on Wednesday after U S retail sales and inflation data beat expectations In the 12 months through January inflation as measured by the Consumer Price Index CPI rose 2 5 beating expectations of 2 1
Large gains in energy prices especially crude oil prices over recent months were one of the main components which contributed to a spike in inflation A separate report showed that U S retail sales rose 0 4 in January compared to expectations for a 0 1 increase
Core retail sales which exclude automobile sales increased by 0 8 in January compared to forecasts for an advance of 0 4
However the dollar gave up gains almost immediately as market focus shifted to a second day of congressional testimony from Fed chief Janet Yellen who briefly mentioned that the U S economy was close to achieving Fed mandates
For today the U K will round up the week with a report on retail sales and Canada is to report figures on foreign securities purchases
EUR USD
The euro continues to remain under pressure against the stronger dollar on Wednesday with EUR USD trading flat around 1 0592 in a quiet day for the Euro zone economic calendar
The pair received some pressure early in the U S session after U S retail sales and inflation data beat expectations however the dollar pared gains immediately ahead of Yellen s second day of congressional testimony where she sounded hawkish increasing the possibility of a March rate hike
Eurozone manufacturing data will take the center stage next week along with the minutes from the Fed s last meeting
In addition markets will continue to watch events in Greece as efforts continue for reaching a deal on the country s next bailout payment before February 20th
Pivot 1 058Support 1 058 1 056 1 0535Resistance 1 063 1 065 1 067Scenario 1 long positions above 1 0580 with targets at 1 0630 1 0650 in extension Scenario 2 below 1 0580 look for further downside with 1 0560 1 0535 as targets Comment the RSI shows upside momentum
Gold
Gold prices gained on Wednesday in what seems to be a technical rebound despite positive reports on U S retail sales and inflation
The yellow metal also seemed to ignore Yellen s hawkish remarks later in the day which favor an interest rate hike sooner than anticipated along with comments by a key Fed policymaker that rates could soon rise going by current economic signals
Gold fell as low as 1217 50 early in the U S session and then bounced back up to cross the 1230 level as the dollar rally faded
In the coming week minutes from the Fed s last meeting will be in focus along with developments regarding the Greek bailout the French and German elections and the Brexit
Pivot 1232Support 1232 1230 1227Resistance 1238 1241 1244Scenario 1 long positions above 1232 00 with targets at 1238 50 1241 00 in extension Scenario 2 below 1232 00 look for further downside with 1230 00 1227 00 as targets Comment the RSI advocates for further upside
WTI Oil
Oil prices fluctuated between gains and losses on Wednesday following a report by the U S Energy information Administration which showed that crude inventories rose 9 5 million barrels in the week ended Feb 10 nearly three times more than analysts expectations boosting commercial stocks to an all time record at 518 million barrels
Gasoline stocks rose 2 8 million barrels compared with analysts expectations in a Reuters poll for a 752 000 barrel drop That pushed inventories of the fuel to a record at 259 million barrels
Because of the conflicting price drivers of OPEC s cuts and rising U S inventories and production analysts said that prices were largely moving sideways
Energy traders will be focusing on tomorrow s oil rig count by Baker Hughes
Pivot 52 75Support 52 75 52 45 52 29Resistance 53 45 53 72 53 95Scenario 1 long positions above 52 75 with targets at 53 45 53 72 in extension Scenario 2 below 52 75 look for further downside with 52 45 52 29 as targets Comment the RSI is mixed to bullish
US 500
The main U S stock indices closed at record highs on Wednesday supported by robust US economic data and continued optimism that President Donald Trump will cut corporate taxes
US markets started the session with a batch of positive economic data from the U S which showed bigger than expected rises in retail sales and consumer prices in January
The Commerce Department said retail sales increased 0 4 percent exceeding expectations of a 1 rise
At the close Dow Jones Industrial Average was up 0 52 the S P 500 climbed 0 5 and the Nasdaq Composite gained 0 64
In corporate earnings news Cisco Systems Inc NASDAQ CSCO reported higher than expected quarterly revenue and profit helped mainly by strong demand for its security products The company s shares which had risen 27 percent in the past 12 months to touch a more than nine year high on Wednesday fell by 1 3 percent at 32 40
Pivot 2340 Support 2340 2331 2323 Resistance 2357 2363 2371 Scenario 1 long positions above 2340 00 with targets at 2357 00 2363 00 in extension Scenario 2 below 2340 00 look for further downside with 2331 00 2323 00 as targets Comment the RSI is mixed with a bullish bias |
CSCO | Cisco Beats Earnings Shares Up | Shares of Cisco Systems NASDAQ CSCO an American multinational tech company jumped by almost 2 after it beat earnings expectations for its fiscal third second earnings report but delivered slightly lower earnings guidance for the coming quarter
Higher EPS
From consensus analyst estimates of 11 55 billion in sales and adjusted earnings of 56 cents per share the networking giant reported profits of 2 3 billion for the fiscal second quarter with earnings of 57 cents per share and 11 58 billion in sales Cisco s revenue declined by 2 compared to last year s same quarter at 11 93 billion to the most recent report of 11 58 in revenue
Although Cisco s overall revenue rose its revenue for its Switching business tumbled by 5 compared to the same quarter last year to 3 30 billion narrowly missing analysts expectations of 3 39 billion
Along with the release of their earnings report Cisco also announced that they would boost their quarterly dividend from 26 cents to 29 cents
Cisco chief financial officer Kelly Kramer stated that the company expects the performance to go on and that they expect the value to be returned to their shareholders In the statement she emphasized that the company is pleased with the business transition to software and their recurring revenue progress
The positive earnings report also impressed investors as the company cut more than 5 000 jobs August last year which was around 7 of its workforce globally as a part of a restructuring program for Cisco which was a shift to focus the business more on cloud services security and internet services
We are pleased with the quarter and the continued customer momentum as we help them drive security automation and intelligence across the network and into the cloud said Chuck Robbins chief executive of Cisco
Cisco Shares
Although shares of the company rose by 1 58 following the release of the earnings report at 32 82 Cisco shares fell back by 1 to 32 50 during after hours trading on a weaker earnings outlook for the fiscal third quarter at around 57 to 59 cents per share still in line with some analysts estimates at 58 cents EPS
As the stock declined during after hours trading analysts became concerned with whether how the company is keeping up with its transitioning and the performance of their computer hardware business which was originally their main source of revenue
For the coming quarter Cisco expects its revenue to be down at around 2 compared to last year and its GAAP earnings to range around 44 to 49 cents while its non GAAP gross margin to range at around 64 to 64 |
CSCO | Establishing A Blue Chip Covered Call Portfolio | Covered call writing and selling cash secured puts are strategies that can be crafted to meet the personal risk tolerance of all investors I use stocks selected from our premium watch lists in my accounts and from the Reports in my mother s account Recently several members have asked about using only blue chip companies These are defined as nationally known well established and financially secure corporations As a result of these inquiries the BCI team is providing quarterly reports of the best performing Dow 30 stocks from 3 month and 1 year perspectives In this article we will use the 10 best out performers to create a portfolio for covered call writing using out of the money strikes taken from the 8 20 2016 report premium members should use the most recent monthly report
Blue Chip Report of 8 20 2016 top section
Blue Chip Report from 8 20 2016
Selection process basic approach
Add up the prices per share of all 10 candidates and multiply by 100 That will be the cost to buy 100 shares of each and sell 1 option contract per security Now take that amount and divide into the cash available In this example if we had 300 00 00 cash available we could purchase 300 shares of each stock costing 264 273 00 plus commissions
Selection process advanced approach
In this procedure we calculate the average cash per position For a portfolio of 300 000 00 and 10 stocks we would dedicate approximately 30 00 00 per position Next we divide the price per share into 30 000 00 and round of to the nearest 100 For example we would buy 1000 shares of Cisco Systems Inc NASDAQ CSCO 30 52 and 200 shares of MMM 179 61 Adjustments may need to be made to assure an adequate amount of cash available for potential exit strategy opportunities
Calculations if we purchased 300 shares of each stock The Ellman Calculator
Results show initial 5 week premium returns of 1 52 with returns of an additional 1 99 This creates a scenario with a possible 5 week maximum return of 3 51 which annualizes to 36 5
Discussion
Option selling can be tailored to one s personal risk tolerance Using blue chip stocks only as the underlying securities is a conservative approach to covered call writing Generally returns will be lower than those from our main premium watch list but still formidable A secondary benefit is that these securities also offer dividend distributions which can enhance returns even higher
Market tone
Global stocks continued to rise this week and strong global manufacturing data continued to improve Despite growing economic optimism oil prices fell this week on increased US inventories Volatility remains subdued with the CBOE Volatility Index at 10 96 This week s reports and international news of importance
The week began with markets pricing in about a 50 chance of a hike in the federal funds rate at the Federal Open Market Committee meeting this month but ended with markets almost fully pricing in a quarter percent hike Comments from Fed chair Janet Yellen helped seal expectations of a March hike
A rise in the ISM manufacturing purchasing managers index and a jump to a 15 year high in the Conference Board s consumer confidence measure were two standout data points in the United States this week
China s PMI showed strength as well though the eurozone s and United Kingdom s PMIs were less robust
Economic sentiment in the eurozone reached a six year high
The Eurozone data reflected an energy driven rise in inflation to near the European Central Bank s 2 target This is the first time consumer price inflation has reached the target in four years
The Dow Jones Industrial Average closed above 21 000 for the first time on Wednesday while the S P 500 Index reached 2 400London s FTSE 100 also closed at a record high on Wednesday supported in part by a weak pound
Despite suffering a defeat in the House of Lords over the Brexit bill UK prime minister Theresa May insists her timetable for triggering Article 50 will not be delayed
With 98 of companies reporting for the fourth quarter of 2016 the earnings growth rate for the S P 500 is 4 9 The 4th quarter will mark the first time the index has seen year over year growth in earnings for two consecutive quarters since Q4 2014 and Q1 2015
THE WEEK AHEAD
MONDAY March 6th
Factory orders Jan
TUESDAY March 7th
Foreign trade deficit Jan
Consumer credit Jan
WEDNESDAY March 8th
ADP employment Feb
Productivity Q4
Wholesale inventories Jan
THURSDAY March 9th
Weekly jobless claims
FRIDAY March 10th
Nonfarm payrolls Feb
Unemployment rate U3 Feb
Federal budget Feb
For the week the S P 500 was up by 0 67 for a year to date return of 6 44
Summary
IBD Market in confirmed uptrend
5 6 Buy signal since market close of November 10 2016
BCI I am currently fully invested and have an equal number of in the money and out of the money strikes Cautious concerned and hopeful waiting for the math to add up relating to new administration promises and how they will be paid for I need both sides of the equation to balance out in order to become more aggressive
WHAT THE BROAD MARKET INDICATORS S P 500 AND VIX ARE TELLING US
The 6 month charts point to a slightly bullish outlook In the past six months the S P 500 was up 9 while the VIX 10 96 declined by 9 |
XOM | WTI Brent Traded Friday Below 200 DMA | Last week was marked by a sharp drop in prices in the energy market WTI crude Brent crude and diesel fell 3 55 5 05 and 3 54 respectively On Friday July 29 WTI and Brent were trading at prices below their 200 day moving averages for the first time since April of this year
News items that moved the markets included
Oil inventories as published by the U S Energy Information Administration on Wednesday took markets by surprise A 1 7 million barrel increase in inventories was reported while analysts were expecting a 2 1 million barrel drop
Libya s largest oil ports will open again now that a settlement has been reached in the conflict between the Presidential Counsel and the brigade controlling the facilities Libya produced 1 6 million barrels per day before 2011 compared to production of 320 000 barrels per day last month
In an environment characterized by lower energy prices and lower refining margins Shell LON RDSa Oil NYSE RDSa reported its lowest profitability in 11 years The company reported having missed expectations in its three business segments
Iraq is negotiating with Exxon Mobil Corporation NYSE XOM and Petrochina Co NYSE PTR to develop two oil fields in the south of the country According to the Deputy Oil Minister Fayyad Al Nima the goal is to maintain production at 4 8 million barrels a day for the rest of 2016
It was a busy week in commodities as many clients took advantage of attractive prices for diesel in CAD L to implement hedges We encourage you to call us to discuss hedging strategies for your fuel spending in CAD L
Have a great week |
XOM | Canadian Overseas Petroleum Looking For Liza s Conjugate | Canadian Overseas Petroleum Limited LON COPL s Mesurado 1 prospect in Liberia is set to be drilled in late 2016 or early 2017 by operator ExxonMobil NYSE XOM targeting multiple Santonian deepwater channel sands Interest in block LB 13 has increased in recent months following ExxonMobil s discovery of the prolific Liza oil field in the conjugate basin in Guyana
Mesurado 1 has been de risked through the use of modern seismic techniques as well as the discovery of oil in offset wells Mesurado 1 s pre drill gross P50 unrisked resource is estimated at c 400mmbbl hence success could prove to be game changing for COPL COPL remains funded through US 120m of gross exploration costs by partner and operator ExxonMobil
Looking for Liza s conjugate twin sister
After recent appraisal ExxonMobil believes that the Liza oil discovery offshore Guyana could hold up to 1 4bnboe making it one of the largest oil discoveries since the start of the decade ExxonMobil is to looking to replicate this success by targeting a possible Liza Atlantic conjugate Mesurado 1 offshore Liberia
Mesurado 1 is de risked by the discovery of oil at the Montserrado 1 offset well on an adjacent licence LB 15 as well as advanced seismic techniques extended elastic impedance and full waveform inversion
To read the entire report please click on the PDF file below |
PCG | A PG E Bankruptcy May Be What California Needs for a Utility Fix | Bloomberg For days California Governor Gavin Newsom and lawmakers deflected questions about what they d do to keep the state s largest utility PG E Corp NYSE PCG from going under On Monday their response became clear Not much
At least not until the power giant has actually gone bankrupt
Once the San Francisco based company has made a Chapter 11 filing in what s likely to be one of the largest U S utility bankruptcies of all time California can jump into the case as a party and wield its power as one of the few entities that must sign off on the company s final plan to emerge That leaves room for Newsom to still carry heavy weight in the outcome
At a press conference Monday the new Democratic governor began laying out what he wants safety reliability and affordability for Californians even as PG E takes steps to address its 30 billion in potential wildfire liabilities In a statement earlier that day he also keyed in on a top priority keeping the state on track to make progress toward our climate goals
The filing viewed by some as the worst outcome may actually help California decide what type of utility is right for a state with an ever increasing risk of multibillion dollar wildfires according to Severin Borenstein an energy economist at the University of California Berkeley Options such as breaking up the utility giant or turning it into government owned entities are likely to be hashed out in concert with the bankruptcy proceeding he said
It will accelerate the discussion that was being had before bankruptcy which is what is the appropriate structure of utilities given the increased wildfire risk Borenstein said If we are going to have investor owned utilities how do we deal with the fact that they may face multibillion liabilities
Deteriorating Finances
Newsom and other lawmakers showed little interest in bailing out the beleaguered company PG E determined a bankruptcy filing was the only viable option to deal with its deteriorating finances after discussions with state officials Steven Malnight senior vice president of energy supply and policy at PG E s utility unit said in an interview
A bankruptcy reorganization would allow PG E to operate and keep the lights on as a court considers a restructuring that could save it
And it would do something else It diversifies the responsibility for what plays out said Kit Konolige a senior analyst with Bloomberg Intelligence
So far I would say the politicians have been very successful to avoid being the bad guy he said Clearly the one in the barrel is the utility What politician is going to step up and say I want to save PG E
At the press conference late Monday Newsom characterized the utility s woes as vastly different than the situation that led its utility unit to go bankrupt in 2001 We are not in an energy crisis he said
He said all options are on the table for the company There s plenty we can do to influence decisions even though PG E s fate would be decided by a bankruptcy judge he said
Vested Interest
It s unlikely that the pressure will be off Newsom and the legislature to act Chapter 11 gives creditors the company and other stakeholders room to negotiate which surely would include the state said Stephen Nielander adjunct lecturer at San Diego State University
You re really talking about a vital interest asset Nielander said The state has a vested interest in our citizens being covered and protected Does that get them a seat at the table It s hard to imagine that they re not
It may also pave the way for change in California s relationship with its power companies PG E s move underscores the reality that the state cannot regulate utilities as we have for the last 100 years Betty Yee the state s controller said in a Twitter post
The state needs a complete assessment of our entire electricity grid she said in a follow up email
Sufficient Resources
The California Public Utilities Commission said it was closely monitoring PG E as are the governor s office and state agencies The commission would have to sign off on any rate increases or changes required to help the company exit a bankruptcy so would be part of any proceedings Newsom said he ll be naming a representative to the regulator very shortly
At this point PG E has sufficient resources to continue to safely meet its core responsibilities and obligations Terrie Prosper a CPUC spokeswoman said in an emailed statement
PG E employs 20 000 people and provides power to more than 15 million Its liabilities could grow from wildfires in 2017 and 2018 The California Department of Forestry and Fire Protection has blamed 17 of the 2017 blazes in part on company power lines and other equipment
Its stock has tanked and it has little left in the bank 1 5 billion in cash and cash equivalents as of Friday PG E has said it doesn t intend to make an interest payment of about 21 6 million due Tuesday on 5 4 percent senior notes due in 2040
Bonds that traded above face value about two months ago posted steep drops Monday The stock fell 52 percent to 8 38 a share New York its biggest one day drop since 1980 Shares are down more than 80 percent since the Camp Fire the deadliest blaze in state history broke out Nov 8 |
PCG | PG E misses interest payment on 2040 notes | Nearly all of PG E s PCG 19 7 18B in bonds trade lower after the company failed to make a 21 6M interest payment due today on its 2040 senior notes In response to a request for comment the company notes the 30 day grace period to make the interest payment before triggering an event of default The price of the 2040 bond which is worth 800M and has a 5 4 coupon rate is 4 75 points lower today with its yield spread vs U S Treasury securities rising by 4 77 percentage points Now read |
PCG | PG E misses interest payment bonds shares dive | By Kate Duguid NEW YORK Reuters PG E Corp N PCG bonds and shares plummeted after the California power company failed to make a 21 6 million interest payment due Tuesday on its 2040 senior notes as it planned to seek Chapter 11 bankruptcy protection Nearly all of the company s 18 billion in debt was trading down while the share price has fallen 21 7 percent In a form filed with the U S Securities and Exchange Commission on Monday PG E announced its intention to not make the payment In response to a request for comment the company cited the SEC filing which also noted that Under the indenture governing the 2040 Notes PG E has a 30 day grace period to make the interest payment before triggering an event of default PG E which owns the biggest U S power utility by customers said on Monday it was preparing to file for Chapter 11 as soon as this month as it faces a potential 30 billion in liabilities linked to California s catastrophic wildfires in 2017 and 2018 Its shares and bonds have been falling since The 2040 bond 694308GS0 which is worth 800 million and sports a 5 4 percent coupon fell by 4 75 points on Tuesday Its yield spread or additional compensation demanded by investors to hold a risky bond over safer U S Treasury securities rose by 4 77 percentage points Despite losses on the 2040 bond the largest drops in price and widening of spreads were concentrated in shorter maturities implying that the market continues to price in some expectation of recovery
PG E had three of the 10 most traded U S corporate bonds on Tuesday MarketAxess data showed of which the most actively traded was a 3 billion note coming due in March 2034 694308GE1 |
PCG | Is The Options Market Predicting A Spike In PG E PCG Stock | Investors in PG E Corporation NYSE PCG need to pay close attention to the stock based on moves in the options market lately That is because the Jun 19 2020 6 00 Put had some of the highest implied volatility of all equity options today What is Implied Volatility Implied volatility shows how much movement the market is expecting in the future Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other It could also mean there is an event coming up soon that may cause a big rally or a huge sell off However implied volatility is only one piece of the puzzle when putting together an options trading strategy What do the Analysts Think Clearly options traders are pricing in a big move for PG E shares but what is the fundamental picture for the company Currently PG E is a Zacks Rank 4 Sell in the Utility Electric Power industry that ranks in the Bottom 35 of our Zacks Industry Rank Over the last 60 days no analysts have increased their earnings estimates for the current quarter while one has revised their estimates downward The net effect has taken our Zacks Consensus Estimate for the current quarter from 79 cents per share to 77 cents in that period Given the way analysts feel about PG E right now this huge implied volatility could mean there s a trade developing Often times options traders look for options with high levels of implied volatility to sell premium This is a strategy many seasoned traders use because it captures decay At expiration the hope for these traders is that the underlying stock does not move as much as originally expected Looking to Trade Options Check out the simple yet high powered approach that Zacks Executive VP Kevin Matras has used to close recent double and triple digit winners In addition to impressive profit potential these trades can actually reduce your risk |
PCG | Zacks com Featured Highlights Include Janus Capital PG E J Alexander s Hilltop Holdings And Fiat Chrysler Automobiles | For Immediate ReleaseChicago IL January 21 2020 Stocks in this week s article are Janus Capital Group Inc NYSE JHG PG E Corp NYSE PCG J Alexander s Holdings NYSE JAX Hilltop Holdings Inc NYSE HTH and Fiat Chrysler Automobiles N V NYSE FCAU Tap These Value Stocks with Impressive Price to Sales RatiosWhen considering valuation metrics price to earnings ratio has always been the obvious choice This is because calculations based on earnings are easy and come in handy However price to sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development generating meager or no profits While a loss making company with a negative price to earnings ratio falls out of investor favor its price to sales could indicate the hidden strength of its business This underrated ratio is also used to identify a recovery situation or ensure that a company s growth is not overvalued A stock s price to sales ratio reflects how much investors are paying for each dollar of revenues generated by the company If the price to sales ratio is 1 it means that investors are paying 1 for every 1 of revenues generated by the company So it goes without saying that a stock with a price to sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar s worth Thus a stock with a lower price to sales ratio is a more suitable investment than a stock with a high price to sales ratio Price to sales is often preferred over price to earnings as companies can manipulate their earnings using various accounting measures However sales are harder to manipulate and are relatively reliable However one should keep in mind that a company with high debt and low price to sales is not an ideal choice The high debt level will have to be paid off at some point leading to further share issuance rise in market cap and ultimately a higher price to sales ratio In any case the price to sales ratio used in isolation cannot do the trick One should also analyze other ratios like Price Earnings Price Book and Debt Equity before arriving at any investment decision For the rest of this Screen of the Week article please visit Zacks com at Disclosure Officers directors and or employees of Zacks Investment Research may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material An affiliated investment advisory firm may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material About Screen of the WeekZacks com created the first and best screening system on the web earning the distinction as the 1 site for screening stocks by Money Magazine But powerful screening tools is just the start That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use Strong Stocks that Should Be in the NewsMany are little publicized and fly under the Wall Street radar They re virtually unknown to the general public Yet today s 220 Zacks Rank 1 Strong Buys were generated by the stock picking system that has more than doubled the market from 1988 through 2016 Its average gain has been a stellar 25 per year Follow us on Twitter Join us on Facebook NASDAQ FB Zacks Investment Research is under common control with affiliated entities including a broker dealer and an investment adviser which may engage in transactions involving the foregoing securities for the clients of such affiliates Contact Jim GiaquintoCompany Zacks comPhone 312 265 9268Email Visit Zacks com provides investment resources and informs you of these resources which you may choose to use in making your own investment decisions Zacks is providing information on this resource to you subject to the Zacks Terms and Conditions of Service disclaimer Past performance is no guarantee of future results Inherent in any investment is the potential for loss This material is being provided for informational purposes only and nothing herein constitutes investment legal accounting or tax advice or a recommendation to buy sell or hold a security No recommendation or advice is being given as to whether any investment is suitable for a particular investor It should not be assumed that any investments in securities companies sectors or markets identified and described were or will be profitable All information is current as of the date of herein and is subject to change without notice Any views or opinions expressed may not reflect those of the firm as a whole Zacks Investment Research does not engage in investment banking market making or asset management activities of any securities These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs These are not the returns of actual portfolios of stocks The S P 500 is an unmanaged index Visit for information about the performance numbers displayed in this press release |
PCG | Zacks com Featured Highlights Include Janus Capital Carnival MarineMax PG E And Berry Petroleum | For Immediate ReleaseChicago IL February 5 2020 Stocks in this week s article Janus Capital Group Inc NYSE JHG Carnival Corp NYSE CCL MarineMax Inc NYSE HZO PG E Corp NYSE PCG and Berry Petroleum Corp NASDAQ BRY Value Based Low Price to Sales Stocks to Garner ProfitsA stock s price to sales ratio reflects how much investors are paying for each dollar of revenues generated by a company If the price to sales ratio is 1 it means that investors are paying 1 for every 1 of revenue generated by the company So it goes without saying that a stock with a price to sales below 1 is a good bargain as investors need to pay less than a dollar for a dollar s worth Thus a stock with a lower price to sales ratio is a more suitable investment than a stock with a high price to sales ratio When considering valuation metrics price to earnings ratio has always been the obvious choice This is because calculations based on earnings are easy and come in handy However price to sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development generating meager or no profits While a loss making company with a negative price to earnings ratio falls out of investor favor its price to sales could indicate the hidden strength of its business This underrated ratio is also used to identify a recovery situation or ensure that a company s growth is not overvalued Price to sales is often preferred over price to earnings as companies can manipulate their earnings using various accounting measures However sales are harder to manipulate and are relatively reliable However one should keep in mind that a company with high debt and low price to sales is not an ideal choice The high debt level will have to be paid off at some point leading to further share issuance rise in market cap and ultimately a higher price to sales ratio In any case the price to sales ratio used in isolation cannot do the trick One should also analyze other ratios like Price Earnings Price Book and Debt Equity before arriving at any investment decision For the rest of this Screen of the Week article please visit Zacks com at Disclosure Officers directors and or employees of Zacks Investment Research may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material An affiliated investment advisory firm may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material About Screen of the WeekZacks com created the first and best screening system on the web earning the distinction as the 1 site for screening stocks by Money Magazine But powerful screening tools is just the start That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use Strong Stocks that Should Be in the NewsMany are little publicized and fly under the Wall Street radar They re virtually unknown to the general public Yet today s 220 Zacks Rank 1 Strong Buys were generated by the stock picking system that has more than doubled the market from 1988 through 2016 Its average gain has been a stellar 25 per year Follow us on Twitter Join us on Facebook NASDAQ FB Zacks Investment Research is under common control with affiliated entities including a broker dealer and an investment adviser which may engage in transactions involving the foregoing securities for the clients of such affiliates Contact Jim GiaquintoCompany Zacks comPhone 312 265 9268Email Visit Zacks com provides investment resources and informs you of these resources which you may choose to use in making your own investment decisions Zacks is providing information on this resource to you subject to the Zacks Terms and Conditions of Service disclaimer Past performance is no guarantee of future results Inherent in any investment is the potential for loss This material is being provided for informational purposes only and nothing herein constitutes investment legal accounting or tax advice or a recommendation to buy sell or hold a security No recommendation or advice is being given as to whether any investment is suitable for a particular investor It should not be assumed that any investments in securities companies sectors or markets identified and described were or will be profitable All information is current as of the date of herein and is subject to change without notice Any views or opinions expressed may not reflect those of the firm as a whole Zacks Investment Research does not engage in investment banking market making or asset management activities of any securities These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs These are not the returns of actual portfolios of stocks The S P 500 is an unmanaged index Visit for information about the performance numbers displayed in this press release |
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