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XOM | Exxon Mobil May Acquire Interest In Mozambique Gas Project | As per media reports Exxon Mobil Corporation NYSE XOM is contemplating acquiring a stake in a large Mozambique natural gas development project from Anadarko Petroleum Corporation NYSE APC and Eni SpA TO E News agency Bloomberg reported that if the the gas deal is sealed it would reap huge benefits for the poverty stricken African nation In Apr 2016 it was disclosed that the African country had a hidden debt of approximately 1 4 billion As a direct offshoot this resulted in the cessation of financial support from the World Bank and other donors Exxon s gas deal could solve the problem to a large extent This is evident as a single stake of Anadarko s Area 1 in the Rovuma Basin off the north coast could generate capital gains tax to the tune of 1 3 billion Media sources are abuzz with speculation that Exxon is eyeing the Eni owned Area 4 The region is a top choice for energy playes as evident the 20 stake purchase by China National Petroleum Corp for 4 2 billion a couple of years ago ExxonMobil is the world s best run integrated oil company in terms 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 EXXON MOBIL CRP Price Exxon 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 a long reserve life and low field declines Despite the plunge in natural gas prices Exxon expects unconventional gas to play a dominant role in future supplies owing to the rapid decline in conventional production The company possesses more than 8 million unconventional acres in North America Currently ExxonMobil carries a Zacks Rank 3 Hold A better ranked stock from the broader energy sector is CVR Refining LP NYSE CVRR sporting a Zacks Rank 1 Strong Buy |
XOM | On An Uptrend Russia Could Explode | Late last year I recommended investing in one of the most hated dirt cheap stock markets in the world Russia
After struggling for a bit my three plays on Russia have taken off thus far in 2016 up 21 8 31 4 and 41 8 respectively Meanwhile the S P 500 Index is up only 3 4
This Russian rebound reaffirms my belief that for a value investor price has to be the starting point Any stock market selling significantly below its book value is a great opportunity
But despite these moves in the right direction Russia surprisingly remains perhaps the cheapest market in the world and an impending geopolitical move by the West could lead to Russian stocks taking off like a rocket
Moving Forward
Before we delve into the reasoning behind the stagnancy of the Russian market let s review a few key factors
First this idea is speculative so make sure to proceed with caution and do not go overboard with immediate investments
The Ukraine issue is serious but after the dust has settled a bit it is probable that U S Russia relations will improve The stakes are simply too high and the logic of some sort of rapprochement is too clear and convincing
After all the last thing the United States wants is to do is push Russia and China together
So while headlines have created the perception of a crisis in U S Russia relations the reality is that diplomats on both sides are working hard on what is referred to in diplomatic circles as alliance management One emerging bond trader who is active in Russia explained it to me like this A lot of this is elaborate political theater
What to Expect
When most investors think of global growth investing with close attention to price they think of Sir John Templeton
Templeton is indeed a legendary figure for having the courage to jump with both feet into deep value opportunities
But don t forget who has led Templeton s efforts in emerging and frontier markets over the past three decades Mark Mobius
Mark has had a hand in dozens of successful funds and is a canny stock picker as well as a keen observer of geopolitical trends
This is what Mobius said in a recent Bloomberg interview about the cheapest market in the world
Russia has been closed to us and many other investors for the most part because of economic sanctions If sanctions are lifted then you could see a big big surge in Russian stocks
Could this happen The U S and Europe have had these sanctions in place since early 2014 after Russia seized Ukraine s Crimea region But now even U S Secretary of State John Kerry seems optimistic that there will be a total ceasefire in Eastern Ukraine paving the way for those sanctions to be lifted
Kerry was quoted optimistically positing that I believe that with effort and with bona fide legitimate intent to solve the problem on both sides it is possible in these next months to get to a place where sanctions can be appropriately removed
Making Moves
Here s the main reason I recommend pulling the trigger on Russia right now whether or not the sanctions are lifted even after the surge so far this year Russia is still incredibly cheap
The VanEck Vectors Russia ETF NYSE RSX is trading at just seven times earnings
Lukoil OTC LUKOY one of the largest oil and gas companies in the world with total proven reserves exceeding even Exxon Mobil NYSE XOM trades at just four times 2016 earnings with a 6 dividend yield
And the VanEck Vectors Russia Small Cap ETF NYSE RSXJ even after a 41 8 jump so far this year is trading at just 4 5 times earnings
Put some mad money in these Russian picks with a 15 trailing stop loss to protect your downside
Good investing |
XOM | ExxonMobil XOM Hits 52 Week High On Rising Crude Prices | Shares of ExxonMobil Corp NYSE XOM hit a 52 week high of 93 98 on Jul 1 2016 Shares closed at 93 84 reflecting a solid return of 12 8 over the past three months The average trading volume for the last three months aggregated 10 792 700 shares The energy major has a market cap of 389 12 billion Over the past 52 weeks the company s shares ranged from a low of 66 55 to a high of 93 98 Crude Rally Drives ExxonMobilSince the beginning of April shares of this Zacks Rank 2 Buy stock have been witnessing a gradual uptrend ExxonMobil s exposure to crude price volatility is resulting in its steady rise The West Texas Intermediate WTI crude fell to a 12 year low mark of 26 21 per barrel in February Now this commodity is hovering around 49 per barrel reflecting a whopping jump of as high of approximately 90 The surge in crude is being driven by a potential workers strike in Norway and disruption in Venezuela The upward pressure in oil prices also reflects the U S Energy Department s recent inventory releases that show a lower crude stockpile Also upward estimate revisions over the last 90 days added to ExxonMobil s attractiveness Analysts have become bullish on the company s growth prospects thereby leading to the rise in estimates The Zacks Consensus Estimate for 2016 rose to 2 66 from 2 36 per share over the last 90 days A persistent rise in oil prices is therefore a major boon for ExxonMobil VALERO ENERGY Price Notably ExxonMobil is the world s best run integrated oil company given its track record of superior return on capital employed As the largest publicly traded oil company ExxonMobil has long been a core holding for investors seeking a defensive name with continued dividend growth Other Stocks to ConsiderOther well placed stocks from the broader energy sector include CVR Refining LP NYSE CVRR World Fuel Services Corp NYSE INT and Tallgrass Energy GP LP NYSE TEGP Each of these stocks sports a Zacks Rank 1 Strong Buy |
PCG | PG E adds to losses reportedly aware of power line problems in fire area | PG E PCG 1 1 extends three days of losses that have knocked a third off the share price as scrutiny rises over the role some of its power lines may have played in northern California s deadly wildfire that is only 30 contained Cal Fire says the so called Camp Fire raging 175 miles north of San Francisco has expanded by another 8K acres to 125K acres and the death toll has reached 42 people the most on record from a California wildfire with 228 people listed as missing PG E said yesterday that it experienced an outage on a transmission line in the Camp Fire area early in the morning of last Thursday shortly before the fire stated A property owner near the tiny town of Pulga near the neighboring town of Paradise that later was incinerated by the fire said she received an email from PG E that crews needed to come to her property to work on high power lines because of problems with sparks Now read |
PCG | PG E shares dive after utility flags impact from Camp wildfire | Reuters Shares of utility PG E Corp N PCG fell 18 percent on Wednesday after the company warned of liquidity concerns if its equipment was found responsible for starting the Camp wildfire currently raging in California The company said liabilities related to the wildfires could exceed its recently renewed insurance cover adding to the severe financial pressure it is already facing The utility has already withdrawn 3 billion from its credit line in anticipation of fire related liabilities leaving it with no additional money available under its credit agreements it said in a filing The Camp wildfire which has killed nearly 48 people is being investigated and PG E told regulators it experienced problems with transmission lines or substations in areas around the time the blazes were reported to have started NBC said in a report on Tuesday that a day before the fire started PG E emailed a local landowner about problems with sparks and the need for workers to enter her property and work on the high power lines The company however was unable to address the issue as the landowner was out of town the report said The company said in the filing it had renewed liability insurance coverage for wildfire events of about 1 4 billion for the period from Aug 1 through July 31 2019 PG E did not immediately respond to requests for comment
The company already faces billions of dollars in potential payouts from lawsuits after California said PG E s power lines were responsible for sparking last year s wildfires |
PCG | PG E PCG Gains But Lags Market What You Should Know | In the latest trading session PG E PCG closed at 24 40 marking a 1 88 move from the previous day This change lagged the S P 500 s 3 43 gain on the day At the same time the Dow added 3 29 and the tech heavy Nasdaq gained 4 26
Prior to today s trading shares of the utility holding company had lost 7 99 over the past month This has lagged the Utilities sector s loss of 5 39 and was narrower than the S P 500 s loss of 12 15 in that time
PCG will be looking to display strength as it nears its next earnings release which is expected to be February 8 2019 On that day PCG is projected to report earnings of 0 63 per share which would represent no growth from the year ago period Meanwhile the Zacks Consensus Estimate for revenue is projecting net sales of 4 31 billion up 5 1 from the year ago period
Any recent changes to analyst estimates for PCG should also be noted by investors Recent revisions tend to reflect the latest near term business trends As a result we can interpret positive estimate revisions as a good sign for the company s business outlook
Our research shows that these estimate changes are directly correlated with near term stock prices Investors can capitalize on this by using the Zacks Rank This model considers these estimate changes and provides a simple actionable rating system
The Zacks Rank system ranges from 1 Strong Buy to 5 Strong Sell It has a remarkable outside audited track record of success with 1 stocks delivering an average annual return of 25 since 1988 Within the past 30 days our consensus EPS projection has moved 0 54 lower PCG currently has a Zacks Rank of 3 Hold
Investors should also note PCG s current valuation metrics including its Forward P E ratio of 6 For comparison its industry has an average Forward P E of 17 58 which means PCG is trading at a discount to the group
Investors should also note that PCG has a PEG ratio of 1 71 right now This popular metric is similar to the widely known P E ratio with the difference being that the PEG ratio also takes into account the company s expected earnings growth rate Utility Electric Power stocks are on average holding a PEG ratio of 3 11 based on yesterday s closing prices
The Utility Electric Power industry is part of the Utilities sector This group has a Zacks Industry Rank of 106 putting it in the top 41 of all 250 industries
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Be sure to follow all of these stock moving metrics and many more on Zacks com |
PCG | Why PG E PCG Could Beat Earnings Estimates Again | Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report PG E PCG which belongs to the Zacks Utility Electric Power industry could be a great candidate to consider
This utility holding company has seen a nice streak of beating earnings estimates especially when looking at the previous two reports The average surprise for the last two quarters was 11 50
For the last reported quarter PG E came out with earnings of 1 13 per share versus the Zacks Consensus Estimate of 1 12 per share representing a surprise of 0 89 For the previous quarter the company was expected to post earnings of 0 95 per share and it actually produced earnings of 1 16 per share delivering a surprise of 22 11
Price and EPS Surprise
For PG E estimates have been trending higher thanks in part to this earnings surprise history And when you look at the stock s positive Zacks Earnings ESP Expected Surprise Prediction it s a great indicator of a future earnings beat especially when combined with its solid Zacks Rank
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank 3 Hold or better produce a positive surprise nearly 70 of the time In other words if you have 10 stocks with this combination the number of stocks that beat the consensus estimate could be as high as seven
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change The idea here is that analysts revising their estimates right before an earnings release have the latest information which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier
PG E has an Earnings ESP of 2 40 at the moment suggesting that analysts have grown bullish on its near term earnings potential When you combine this positive Earnings ESP with the stock s Zacks Rank 3 Hold it shows that another beat is possibly around the corner The company s next earnings report is expected to be released on February 8 2019
With the Earnings ESP metric it s important to note that a negative value reduces its predictive power however a negative Earnings ESP does not indicate an earnings miss
Many companies end up beating the consensus EPS estimate but that may not be the sole basis for their stocks moving higher On the other hand some stocks may hold their ground even if they end up missing the consensus estimate
Because of this it s really important to check a company s Earnings ESP ahead of its quarterly release to increase the odds of success Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they ve reported |
PCG | Utility Destroyed | How s it going at PCG Well they re evidently going to declare bankruptcy and the stock price has returned to the same level it was in 1990 The finest corporate leadership since Elizabeth Holmes but much better paid |
XOM | Sunoco Logistics Exxon to combine pipeline assets in new joint venture | Sunoco Logistics Partners NYSE SXL says it is forming a joint venture with ExxonMobil NYSE XOM to combine some of their key crude oil logistics assets The JV expands SXL s west Texas footprint and comes less than two months after an announcement to buy Vitol s crude oil unit in the Permian for 760M SXL will contribute its Permian Express 1 and 2 Permian Longview and Louisiana Access pipelines to the JV while XOM s contribution includes its Longview to Louisiana and Pegasus pipelines Hawkings gathering system an idle pipeline in southern Oklahoma and its terminal in Patoka Ill SXL will own an 85 stake in the Permian Express Partners JV while XOM will control the remaining 15 |
XOM | Exxon VP calls climate change serious risk in tweet | Two days after Donald Trump won the White House ExxonMobil NYSE XOM makes clear its position on climate change tweeting that The Paris agreement is an important step forward by governments in addressing the serious risks of ClimateChange Suzanne McCarron XOM s VP of public and government affairs and author of the tweet linked to a statement that appeared to be written last week when the company commended officials for the entering into force of the climate deal It s worth remembering that XOM is fighting with New York s attorney general and others who want to force the company to hand over decades of documents as part of a broad inquiry into its policies about climate change risks |
XOM | Exxon adds New York to lawsuit in bid to stop climate change probe | ExxonMobil XOM 1 1 adds New York s attorney general to the lawsuit it filed in June against the Massachusetts AG in a bid to stop an investigation into what the company knew about climate change The company says the two attorneys general are conducting improper and politically motivated investigations of Exxon Mobil in a coordinated effort to silence and intimidate one side of the public policy debate on how to address climate change Massachusetts New York and other states are investigating whether XOM violated securities laws and consumer protection rules by withholding information that man made emissions were changing the climate |
XOM | Emerging Markets To Drive The Future Of Coal | Potentially Rewarding Market Trends
World demand for coal is expected to grow by 7 percent through 2030 as a result of emerging markets prioritizing cost effective energy production methods over environmental sustainability India and Southeast Asia hold 26 percent of the world s population but account for only 13 percent of global energy production Coal energy s cost efficiency will be vital to these emerging nations strive towards the upper echelon of global markets The production of coal energy in the last decade has already risen exponentially to fuel the initiating growth of Asian economies While renewable energy demand in the developed world is expected to increase 53 percent over the next 15 years it will remain a modest threat as coal demand will still be significantly higher ExxonMobil NYSE XOM eyes a similar timeline for world coal demand estimating peak market conditions in 2025 Coking coal steelmaking coal demand is also on the rise with the steel and chemicals industries requirements for coal are approaching record quantities The requirement for steelmaking coal will be a centric driver of growth in the industry
Supply is falling with lower coal prices leading to closures and decreased investment in the industry In the long run the supply of coal is expected to be nearly slashed in half according to Swiss commodity trading giant Glencore LON GLEN Plc The increased demand and faltering supply is likely to lead to the balanced market investors are hoping for The major mining companies are capable of surviving the lower pricing which puts them in a position to come out on top with market improvements while smaller scale companies with less capital will not be able to keep pace and will eventually exit the market
Top Industry Players to Benefit
Teck Resources is Canada s largest diversified resources company that has seen massive growth through the recent boom in commodity stocks With 34 percent of their total profits derived from steelmaking coal they currently stand as one of North America s top producers in this niche The company has seen rapid growth recently even through a period of downturn in the coal industry Emerging markets are pushing the demand for steelmaking coal due to their need for developing steel infrastructure India s imports of steelmaking coal are increasing 8 percent each year and this trend will continue through 2021 50 percent of Teck Resources steelmaking coal is exported to this part of Asia 25 percent of their exports are sold directly to China The commodity giant will benefit from the economic growth of developing Asian nations Analysts have upped earnings estimates from 0 01 EPS to 0 31 for the year end Teck Resources has revealed that they are generating positive cash flow from all but one of their operating facilities Management has been effective in controlling costs through a period of low commodity prices which is an optimistic sign for future earnings The company beat Zacks consensus EPS estimates in each of the last four quarters with a 4 quarter surprise of 114 Teck Resources is currently on Zacks 1 Rank with a price target of 14 00
The world s top steelmaking coal miner BHP Billiton LON BLT is planning to boost its steelmaking coal output by 8 percent over the next three years Meanwhile they intend to slash coal mining expenses by 9 percent and overall company costs by 16 percent to advance profits in this volatile market Mike Henry president of BHP Billiton Minerals Australia stated in a company release The developing world needs steel steel needs coking coal and we have the strongest resource position in the seaborne market The company believes China will continue to import vast quantities of steelmaking coal due to their coastal market access BHP Billiton intends on being the top international facilitator of China s India s and other Asian markets steelmaking coal needs The global miner is eyeing Anglo American LON AAL Plc s Australian steelmaking coal mines as an acquisition target proximate to their current operations in the country to expand their control of the coal market Analysts recently increased EPS consensus estimates by 23 5 to 0 21 EPS for the year as a result of the company s intentions to expand into emerging markets coupled with their to maximize efficiencies BHP Billiton has seen productivity gains of 3 billion since 2012 with a further estimated gain of 600 million in 2017 The company s increased efficiencies has allowed them to remain cash positive in all of their operations Therefore BHP Billiton has become less prone to market conditions by putting more power into their own hands BHP Billiton is currently ranked as a Buy by Zacks com with a price target of 32 00
2016 Election
The upcoming U S election could improve the condition of coal miners with domestic mining interests The United States is sitting on the largest coal hotbed in the world with well over 200 billion tons of reserves With the cheap nature of coal production and ease of domestic access the United States is likely to seek this competitive advantage in its energy production with a Donald Trump presidency Trump has expressed his strong willingness to repeal strict regulations on coal production which have tediously driven up operating costs for mining companies Companies with large scale steelmaking and energy coal operations in the U S like Rio Tinto LON RIO Consol Energy and Peabody Energy stand to benefit from abolished laws which would provide an easy avenue to increase efficiencies to better handle exporting to high demand developing countries
An imbalance in the coal market certainly exists in current conditions but the rise of emerging economies is increasingly growing the requirement for both energy and steelmaking coal With coal companies adapting to poor conditions they are becoming better suited to cut costs and deliver returns for investors even through low commodity prices decreasing overall risk in major mining company stocks |
XOM | ExxonMobil Reportedly Hits Huge Oil Gas Deposits In Guyana | ExxonMobil Corporation NYSE XOM is believed to have encountered large deposits of oil and gas in a recently drilled appraisal well offshore the South American county of Guyana The Energy Minister mentioned that the company is expected to drill another well in upcoming months Per officials ExxonMobil had already drilled a well last year which is estimated to hold about 700 million barrels of oil The company s drill site is located about 150 miles away from Guyana s east coast Other companies having exploration interest in the area include British petroleum giant Tullow Oil LON TLW PLC and Repsol MC REP of Spain EXXON MOBIL CRP Price ExxonMobil is the world s best run integrated oil company based in terms of high return on capital employed As the largest publicly traded oil company ExxonMobil has long been a core holding for investors seeking a defensive as well as continued dividend growth Exxon 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 Despite the plunge in natural gas prices Exxon expects unconventional gas to play a dominant role in the future supplies owing to the rapid decline in conventional production The company possesses more than 8 million unconventional acres in North America ExxonMobil holds a Zacks Rank 3 Hold Some better ranked players from the energy sector are Boardwalk Pipeline Partners LP NYSE BWP FutureFuel Corp NYSE FF and ReneSola Ltd NYSE SOL Each of these stocks sports a Zacks Rank 1 Strong Buy |
PCG | PG E power lines tied to last year s Cascade fire Cal Fire probe says | The October 2017 Cascade wildfire in northern California was started by sagging power lines on equipment owned by Pacific Gas Electric PCG 1 4 which came into contact during heavy winds according to a Cal Fire investigation But Cal Fire says it did not find public resources code violations and forwarded its report to the Yuba County District Attorney Investigators already had named PG E equipment as the ignition source of 16 other fires last year while alleging violations of state law in 11 of those incidents Cal Fire still has not released its report on the Tubbs fire the deadliest of last year s blazes Now read |
PCG | Twenty Years Of Gains Gone | Pacific Gas Electric NYSE PCG has been hammered by fire liability concerns and it is priced at the same level it was in 1998 It is down 75 which includes adjustments for dividends But hey 1998 wasn t so bad The government was running a SURPLUS and we were about 16 trillion less in debt |
PCG | Bonds And Utilities Set For A Slide | I m keeping a close eye on the bonds which I believe will soon be repelled by those plunging moving averages
The Utilities also interest sensitive should fall as well although they have been dramatically stronger which I find freakish considering PCG has lost the majority of its market cap in a very short span of time |
PCG | PG E PCG Stock Moves 1 33 What You Should Know | PG E PCG closed the most recent trading day at 26 75 moving 1 33 from the previous trading session This move was narrower than the S P 500 s daily loss of 3 24 At the same time the Dow lost 3 1 and the tech heavy Nasdaq lost 3 8
Heading into today shares of the utility holding company had lost 42 85 over the past month lagging the Utilities sector s gain of 4 95 and the S P 500 s gain of 2 73 in that time
PCG will be looking to display strength as it nears its next earnings release which is expected to be February 8 2019 In that report analysts expect PCG to post earnings of 0 61 per share This would mark a year over year decline of 3 17 Meanwhile our latest consensus estimate is calling for revenue of 4 31 billion up 5 1 from the prior year quarter
Looking at the full year our Zacks Consensus Estimates suggest analysts are expecting earnings of 3 82 per share and revenue of 17 16 billion These totals would mark changes of 3 8 and 0 17 respectively from last year
Investors might also notice recent changes to analyst estimates for PCG These revisions typically reflect the latest short term business trends which can change frequently With this in mind we can consider positive estimate revisions a sign of optimism about the company s business outlook
Research indicates that these estimate revisions are directly correlated with near term share price momentum Investors can capitalize on this by using the Zacks Rank This model considers these estimate changes and provides a simple actionable rating system
Ranging from 1 Strong Buy to 5 Strong Sell the Zacks Rank system has a proven outside audited track record of outperformance with 1 stocks returning an average of 25 annually since 1988 The Zacks Consensus EPS estimate has moved 0 66 higher within the past month PCG currently has a Zacks Rank of 3 Hold
Investors should also note PCG s current valuation metrics including its Forward P E ratio of 7 09 This valuation marks a discount compared to its industry s average Forward P E of 18 92
We can also see that PCG currently has a PEG ratio of 2 02 This popular metric is similar to the widely known P E ratio with the difference being that the PEG ratio also takes into account the company s expected earnings growth rate Utility Electric Power stocks are on average holding a PEG ratio of 3 55 based on yesterday s closing prices
The Utility Electric Power industry is part of the Utilities sector This group has a Zacks Industry Rank of 79 putting it in the top 31 of all 250 industries
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
Make sure to utilize Zacks Com to follow all of these stock moving metrics and more in the coming trading sessions |
PCG | Why Is PG E PCG Down 44 9 Since Last Earnings Report | It has been about a month since the last earnings report for PG E PCG Shares have lost about 44 9 in that time frame underperforming the S P 500
Will the recent negative trend continue leading up to its next earnings release or is PG E due for a breakout Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts PG E Corporation Q3 Earnings Top Revenues Lag EstimatesPG E Corporation reported adjusted operating earnings per share of 1 13 in third quarter 2018 which surpassed the Zacks Consensus Estimate of 1 12 by 0 9 The bottom line also increased 0 9 from the year ago quarter s tally This year over year upside can be attributed to growth in rate base earnings and probable cost recoveries of insurance premiums incurred in 2018 Excluding one time items the company reported GAAP earnings of 1 09 per share compared with earnings of 10 7 generated in the prior year quarter Revenue UpdatePG E Corp s total revenues of 4 381 million missed the Zacks Consensus Estimate of 4 548 million by 3 7 The top line also declined 3 from the year ago quarter s number While electric revenues decreased 5 from the prior year quarter s tally natural gas revenues improved 5 3 year over year Operational HighlightsTotal operating expenses in the reported quarter totaled 3 685 million up 1 5 from 3 631 million in third quarter 2017 Costs increased due to higher operating and maintenance expenses The company generated operating income of 696 million compared with 886 million registered in last year s third quarter Interest expenses in third quarter 2018 summed 232 million compared with 220 million in the year ago period GuidancePG E Corp has not provided guidance for 2018 GAAP earnings and adjusted earnings from operations due to the uncertainty related to the Northern California wildfires in October 2017
How Have Estimates Been Moving Since Then
In the past month investors have witnessed an upward trend in fresh estimates
VGM Scores
At this time PG E has an average Growth Score of C however its Momentum Score is doing a bit better with a B Charting a somewhat similar path the stock was allocated a grade of A on the value side putting it in the top 20 for this investment strategy
Overall the stock has an aggregate VGM Score of A If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision looks promising Notably PG E has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
PCG | Should Value Investors Buy PG E PCG Stock | While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks we also know that investors tend to develop their own individual strategies With this in mind we are always looking at value growth and momentum trends to discover great companies
Of these perhaps no stock market trend is more popular than value investing which is a strategy that has proven to be successful in all sorts of market environments Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large
In addition to the Zacks Rank investors looking for stocks with specific traits can utilize our Style Scores system Of course value investors will be most interested in the system s Value category Stocks with A grades for Value and high Zacks Ranks are among the best value stocks available at any given moment
One stock to keep an eye on is PG E PCG PCG is currently sporting a Zacks Rank of 2 Buy as well as an A grade for Value The stock is trading with P E ratio of 6 13 right now For comparison its industry sports an average P E of 13 19 Over the last 12 months PCG s Forward P E has been as high as 14 02 and as low as 4 43 with a median of 11 27
Investors should also note that PCG holds a PEG ratio of 1 75 This figure is similar to the commonly used P E ratio with the PEG ratio also factoring in a company s expected earnings growth rate PCG s industry currently sports an average PEG of 2 19 Over the last 12 months PCG s PEG has been as high as 3 54 and as low as 1 26 with a median of 2 71
Investors should also recognize that PCG has a P B ratio of 0 64 Investors use the P B ratio to look at a stock s market value versus its book value which is defined as total assets minus total liabilities This stock s P B looks attractive against its industry s average P B of 1 70 PCG s P B has been as high as 1 41 and as low as 0 47 with a median of 1 16 over the past year
Value investors also frequently use the P S ratio This metric is found by dividing a stock s price with the company s revenue Some people prefer this metric because sales are harder to manipulate on an income statement This means it could be a truer performance indicator PCG has a P S ratio of 0 71 This compares to its industry s average P S of 1 84
Finally we should also recognize that PCG has a P CF ratio of 4 04 This metric takes into account a company s operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook This stock s P CF looks attractive against its industry s average P CF of 6 70 Over the past year PCG s P CF has been as high as 8 09 and as low as 2 93 with a median of 5 12
These are just a handful of the figures considered in PG E s great Value grade Still they help show that the stock is likely being undervalued at the moment Add this to the strength of its earnings outlook and we can clearly see that PCG is an impressive value stock right now |
XOM | Exxon Mobil profit drops 38 percent but beats estimates | HOUSTON Reuters Exxon Mobil Corp N XOM the world s largest publicly traded oil company on Friday reported a 38 percent drop in quarterly profit that still beat Wall Street s expectations as cost cuts partly offset declining crude oil prices CLc1 Shares of Exxon were down 1 7 percent at 85 46 in morning trading The company reported third quarter net income of 2 65 billion or 63 cents per share compared with 4 24 billion or 1 01 per share a year earlier Analysts on average expected a profit of 58 cents per share according to Thomson Reuters I B E S Earnings fell in all of the company s divisions including the refining arm which has generally bolstered profits when oil prices are low Production fell about 3 percent to 3 8 million barrels of oil equivalent per day
Exxon s refineries processed about 2 percent less crude oil during the quarter than it did a year earlier |
XOM | Exclusive Oil majors join forces in climate push with renewable energy fund | By Ron Bousso LONDON Reuters Top oil companies including Saudi Aramco and Shell LON RDSa are joining forces to create an investment fund to develop technologies to promote renewable energy as they seek an active role in the fight against global warming sources said The chief executives of seven oil and gas companies BP LON BP Eni Repsol MC REP Saudi Aramco Royal Dutch Shell Statoil OL STL and Total will announce details of the fund and other steps to reduce greenhouse gases in London on Friday The sector faces mounting pressure to take an active role in the fight against global warming and Friday s event will coincide with the formal entry into force of the 2015 Paris Agreement to phase out man made greenhouse gases in the second half of the century The group is part of the Oil and Gas Climate Initiative OGCI which was created with the backing of the United Nations in 2014 and includes 11 companies representing 20 percent of global oil and gas production The company leaders are expected to detail plans to create an investment vehicle that will focus on developing technologies to lower emissions and increase car engine and fuel efficiency according to the sources involved in the talks who declined to be named The size and structure of the fund were unclear The fund will also focus on ways to reduce costs of carbon capture and storage CCS technology which involves capturing carbon dioxide emissions produced from fossil fuel burning plants and re injecting them into underground caverns OGCI Shell Total and BP declined to comment The CEOs are also expected to announce the next phase of their plan to reduce the oil sector s emissions primarily by reducing flaring of excess gas at fields increasing the use of CCS and limiting the release of methane a highly polluting gas often emitted through pipe leaks OGCI leaders called on governments last year to set a price on carbon emissions to encourage the use of cleaner technologies although some companies including Exxon Mobil NYSE XOM have resisted the idea They now hope to show they can play an active role The drive to limit global warming to 1 5 degrees Celsius by the end of the century poses a threat to oil and gas companies as transport and power sectors gradually shift towards renewable sources of energy such as solar and wind Oil majors including Norway s Statoil France s Total and Italy s Eni have increased their investments in renewable energy in recent years although it is still dwarfed by the main fossil fuel business Oil producers have also lobbied for the phasing out of coal in favor of the less pollutant natural gas in the power sector Total CEO Patrick Pouyanne said last month that OGCI leaders will announce plans to work collectively to develop technologies which will be needed to face climate change issues Delegates from signatory nations meet in the Moroccan city of Marrakesh on Nov 7 18 to start turning their many promises into action and draw up a rule book for the sometimes fuzzily worded Paris Agreement on climate change reached last December |
XOM | Saudi Naimi s battles against Western greed shine light on Aramco IPO | By Dmitry Zhdannikov LONDON Reuters As Saudi Arabia prepares for the world s biggest initial public offering IPO memoirs from its former oil minister Ali al Naimi offer a rare insight into decades of domestic infighting over the future of state run Saudi Aramco The 300 page book titled Out of the Desert and published by Portfolio Penguin describes the battles waged by the influential industry veteran including fending off Western attempts to gain control of oil giant Aramco s best assets Naimi joined Aramco as a teenager in 1947 and climbed through the ranks to become company chief from 1983 to 1995 when he was named minister of petroleum a post he retained until his retirement this year His career spans the rise of the petro politics that defined the recent history of the kingdom including the birth of the Organization of the Petroleum Exporting Countries in 1969 and the oil embargo in 1973 Even though the book holds back from detailing any political jostling within the secretive Saudi royal family and government it gives a clear idea that various factions have often pushed for different paths for Saudi Aramco Naimi describes several instances throughout his career when he fought top executives from Western companies including U S giant Exxon Mobil NYSE XOM trying what he describes as winning lucrative deals via good connections with some Saudi officials They Exxon wanted us to turn over highly restricted information about our Ghawar field for instance that isn t even known within the kingdom outside of the oil ministry and Saudi Aramco Naimi writes about gas talks between oil majors and Aramco at the end of the 1990s If Aramco does list its stock as planned in 2018 investors would expect the firm to disclose classified information on its reserves including Ghawar Saudi Arabia s biggest oilfield But it could avoid doing so given the sensitivity of the issue and just say that by buying into Aramco investors would gain access to the world s cheapest reserves still controlled by the state according to sources briefed on the offering Naimi retired in April and was replaced by Aramco chairman Khalid al Falih as energy minister The Saudi oil portfolio is overseen by Deputy Crown Prince Mohammed bin Salman 31 who has been actively promoting the Aramco IPO Sources in the kingdom have suggested the royal family is far from united on the issue as some see the offering as giving away the crown jewels cheaply to foreigners at a time of low oil prices Naimi says he fought hard for the heart and soul of Aramco to avoid giving Westerners unnecessarily lucrative deals Exxon s then boss Lee Raymond for instance was trying to make the most of his relationship with the foreign minister at the time Prince Saud al Faisal to get a better deal for ExxonMobil Naimi writes Naimi says he was convinced that as part of gas talks in the 1990s Exxon and other oil majors hoped to acquire cheap Saudi reserves of gas condensate a high quality form of crude oil I told Lee Raymond my views and that I felt he was trying to gain an unfair advantage Lee responded in kind and it got a little ugly From that point onward our negotiations were over I haven t seen Lee Raymond since which was a shame because we were once good friends Naimi continues Naimi effectively won the battle as Aramco offered to oil majors pure upstream gas exploration contracts without gas condensate and only Shell LON RDSa and Total entered into a deal A similar fight happened a few years earlier when Naimi says Shell Mobil and Total tried to persuade his predecessor oil minister Hisham Nazer to allow them to develop the Shaybah oilfield for what Naimi saw as an overly expensive contract Naimi even says Francois Mitterrand France s then president was convinced that King Fahd had promised him the field in exchange for French participation in the first Gulf War Again Naimi fought against the idea as the companies became greedy He cites praise from his successor Falih By holding his ground minister al Naimi was not necessarily protecting Saudi Aramco he was protecting the kingdom from having substantial value drained away in those transactions As Aramco s IPO draws nearer the issue of value drain will become increasingly relevant
To cite Naimi When the camel goes down many knives come out That is an old Arabic proverb In the mid 1980s the camel was Aramco the knives were the vested interest of Saudis who viewed us as a symbol of foreign influence and the era of colonialism |
XOM | InterOil rebounds as Exxon fully supportive of merger dealdeal | InterOil IOC 3 6 recoups much of its Friday losses after seeking to reassure investors that its deal to be acquired by ExxonMobil XOM 2 1 is still alive and well despite a Canadian court s ruling that the deal was unfair to shareholders IOC says XOM has advised that it remains fully supportive of the deal as the companies work through issues raised by the court s decision that overturned a previous ruling by the Yukon s Supreme Court to allow the deal to proceed IOC says it is in discussions with XOM with respect to extending the outside date and also is considering options to file for leave to appeal to the Supreme Court of Canada |
CSCO | Cisco CSCO To Invest 4 Billion In Mexico To Boost Output | Shares of Cisco Systems Inc NASDAQ CSCO have been scaling steadily higher over the last 12 months The company s stock provided a return of 24 46 as compared to the S P 500 s 13 09 over the period Notably the company s stock was up 1 35 on Tuesday afternoon following a Reuters report that the company is ramping up its investments in Mexico to the tune of 4 billion in a bid to increase production Cisco plans to deploy the amount in Mexico through 2018 Additionally it intends to secure contracts with independent manufacturers for production rather than augmenting its own facilities that it already has in the country The move will boost the company s output of products such as routers switches servers and wireless access points Focus on MexicoMexico is rapidly emerging as the preferred outsourcing destination for many American companies The country s lower labor costs coupled with geographical proximity to the U S and a conducive business environment is helping the nation to attract investments and fuel economic growth We note that in Apr 2016 Ford Motor Co NYSE F announced that it intends to invest 1 6 billion in the country to set up a small car facility In Jun 2015 AT T Inc NYSE T announced a whopping investment of nearly 3 billion in Mexico to augment its mobile internet service Earlier that year the company had spent 4 4 billion for acquiring Nextel Mexico and Iusacell Our TakeCisco Systems is a leading provider of IP based networking and other products The company s fiscal fourth quarter earnings were above the Zacks Consensus Estimate We are positive about the company s market position its ability to innovate product range growth initiatives new investments and dividend payout Additionally overall growth prospects remain positive because of the drive toward cloud computing and increasing data flow on carrier and computing networks Cisco s decision to deploy additional funds in Mexico comes at a time when the company is considering a 7 job cut worldwide As per a Bloomberg report Cisco intends to invest the savings from the job cuts in emerging sectors such as connected services and cloud computing However increasing competition and challenges in China remain concerns for the company in the long run CISCO SYSTEMS Price Zacks Rank Key PicksAt present Cisco carries a Zacks Rank 3 Hold A better ranked stock in the broader technology space is Lantronix Inc NASDAQ LTRX sporting a Zacks Rank 1 Strong Buy You can see Notably the estimates for Lantronix for the current fiscal year have narrowed down from a loss of 21 cents to a loss of 8 cents Confidential from Zacks Beyond 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 And BHP Billiton Planning Australian Exodus | Per media reports U S energy giant ExxonMobil Corp NYSE XOM and Anglo Australian multinational BHP Billiton LON BLT Ltd NYSE BHP are contemplating disposing a number of depleting oil and natural gas fields in Australia The list includes Kingfish oil field in Bass Strait Found in the mid 1960s is the largest oil field ever discovered in Australia The duo has been working together in an equally owned joint venture in the Gippsland basin in Australia since 1960 Exxon and BHP Billiton are planning to dispose 13 fields licences and associated systems in the region In addition to Kingfish the fields to be sold include Blackback Cobia Dolphin Flounder Fortescue Halibut Mackerel Perch Seahorse and Tarwhine Bass Strait fields have produced more than 4 billion bbl of oil and 8 tcf of gas since production started in 1965 The region was Australia s mainstay in oil production till the nineties But currently the region is mainly a gas producer The two companies will retain ownership of the remaining offshore fields and the onshore facilities at Longford These include the new 4 5 billion Kipper Tuna Turrum development which has an estimated 1 6 bcf of gas and 140 million bbl of liquids EXXON MOBIL CRP Price ExxonMobil is one of the world s best run integrated oil companies given its track record of superior returns on capital employed The energy giant has long been a core holding for investors seeking a defensive name with continued dividend growth The company is also fairly active in its investment programs Zacks Rank Stocks to Consider ExxonMobil currently carries a Zacks Rank 3 Hold Some better ranked stocks from the same space are Braskem S A NYSE BAK and North Atlantic Drilling Limited NYSE NADL Both these stocks sport a Zacks Rank 1 Strong Buy |
XOM | ExxonMobil s Russian Project May Get Nod To Export To China | U S energy giant ExxonMobil Corp s NYSE XOM oil and gas project on the Russian Pacific island of Sakhalin is likely to get rights to export natural gas to China The announcement was made by Russian Energy Minister Alexander Novak ExxonMobil is the operator of the Sakhalin 1 offshore deposits The project is being jointly developed by the company and Russian state owned energy firm Rosneft under a production sharing agreement PSA signed in the 1990s The gas deposits of the project have remained unused for a long time This is mainly due to a price related issue between Sakhalin 1 and Gazprom MCX GAZP which has a monopoly right to export gas Novak also met ExxonMobil s chief on the sidelines of the St Petersburg International Economic Forum where the former discussed three options to allow Sakhalin 1 to sell gas EXXON MOBIL CRP Price These included liquefying the fuel with Rosneft and selling it to the nearby Sakhalin 2 Notably the proposed buyer is the sole Russian LNG producer and a joint venture of Gazprom Royal Dutch Shell LON RDSa plc RDS A and Japanese partners The third option comprised gas supplies to China The Energy Minister added that the PSA will facilitate Sakhalin 1 to sell gas abroad despite Gazprom s monopoly Interestingly Gazprom has constructed a pipeline from Sakhalin to Vladivostok near the Chinese border with a similar aim to transfer gas to the nation A tender was called by Sakhalin 2 to build a third production train for the Gazprom Royal Dutch Shell LNG plant This plant also requires gas from Sakhalin 1 to expand its capacity ExxonMobil carries a Zacks Rank 3 Hold Some better ranked players from the energy sector are CVR Refining LP NYSE CVRR FutureFuel Corp NYSE FF and ReneSola Ltd NYSE SOL Each of these stocks sports a Zacks Rank 1 Strong Buy |
PCG | The Week Ahead Which Stocks Benefit Most From Trump Policy Changes | The economic calendar is normal but there will be a lot of competing news Korean talks China negotiations and the Trump legal team s announcement about whether the President will meet with Special Counsel Mueller And those are just the items we know about
Sometimes there are great themes that do not get the deserved attention in financial media Readers have encouraged me to identify and discuss such themes and this week provides a good opportunity Pundits should be asking
Which equity sectors benefit most from Trump policy changes
Last Week Recap
In my last edition of WTWA I asked why stocks were stuck in neutral given the recent economic strength and the strong corporate earnings I also noted the significance of the week s inflation data even though the Fed s favorite gauge was not on the calendar That was all quite accurate It was the key topic at the start of the week and stocks responded well to the tame inflation data released mid week
The Story in One Chart
I always start my personal review of the week by looking at a great chart I especially like the S P 500 version updated each week She includes a lot of valuable information in a single visual The full post has even more charts and analysis so check it out
The market had a nice rally up 2 4 for the week The trading range was about 3 4 consistent with recent volatility I summarize actual and implied volatility each week in our Indicator Snapshot section below As you can see volatility has been moving lower and is back into the long term range
The News
Each week I break down events into good and bad For our purposes good has two components The news must be market friendly and better than expectations I avoid using my personal preferences in evaluating news and you should too
Feel free to add items that I have missed Please keep in mind that we are looking for current news especially from the last week or so WTWA is not about long term concerns like debt These are important of course but not our weekly subject unless there has been some major change
The overall picture remains positive Economic strength is reasonable and inflation is low analysis of high frequency indicators shows some deterioration but retains the overall outlook
The Good
NFIB small business optimism nudged higher to 104 8 vs 104 7 last month and expected The record of improved profits was the highest in the 45 year history of the survey
Hotel occupancy is on pace for a record year
Bank lending is getting easier New Deal Democrat notes that an ongoing criticism of the economy has been the deceleration of commercial and industrial loans The Senior Loan Officer Survey tends to lead lending by about six months He concludes Credit remains loose and indicates continuing economic growth over the next 12 months
JOLTS showed labor market strength Nick Bunker provides the best analysis of this report covering and interpreting all the key elements This month there is a small rebound in the quits rate the all time low of the ratio between unemployed workers and open jobs and the overall structure represented in the Beveridge curve
Inflation remained tame The PPI increased 0 1 with the core up 0 2 The CPI increased 0 2 with the core up 0 1 These reports comforted observers who are concerned about Fed rate hikes Jill Mislinski provides an X Ray View of inflation component using year over year changes instead of seasonal adjustments James Picerno observers that the data are unlikely to influence Fed policy
Initial jobless claims matched last week s low of 211K and beat expectations of 220K
The Bad
Oil and gasoline prices move higher Iran sanctions the Venezuelan economic crisis and seasonality are all factors
No progress in the US China trade talks Some were optimistic since the delegations included top level officials
The Ugly
The Central States Pension Fund is expected to be insolvent in seven years Some businesses in the plan have failed and investments have not met expected returns
The Week Ahead
We would all like to know the direction of the market in advance Good luck with that Second best is planning what to look for and how to react
The Calendar
The economic calendar is normal with an emphasis housing data Retail sales and industrial production are important and some swear by the leading indicators Geopolitical and investigation news may once again claim the spotlight
has a good U S economic calendar for the week and many other good features which I monitor each day Here are the main U S releases
Next Week s Theme
It may well be a big week for news but there is no clear focus for the punditry Don t worry They will find a way to fill the air time I am taking the occasion to discuss a topic that should be getting more attention Pundits and financial writers should be asking
What sectors benefit most from the Trump policy changes
Please note that this is an investment question not a political one A good investor is politically agnostic but must also be realistic Policy changes are facts and the gauging the likely investment impacts is analysis We know much more about Trump policies than we did at the start of his term There are several key effects worth further research In the list below I sometimes include a link which provides a viewpoint or analysis as a starting point The links do not necessarily represent my personal views Good research requires considering all sides I have included in brackets a few comments of my own The topics are all worth further study with significant investment implications
Trade policy Fortune s CEO Daily is one of my daily reads Today there was an of the China trade situation with links taking a US viewpoint and a China viewpoint The source material included a pro China article from the and a pro US article from the
The estimates of the hit to GDP is a reduction in growth of 0 3 for China and even less for the US Could the trade conflict expand the overall economic effects of US Import restraints Few understand that many products have a complicated history of contributions and cross many borders Here is a fascinating example
Housing Construction costs are increasing both materials and land The WSJ suggests that the next housing crisis could be a Lumber prices are higher partly because of the tariff on Canadian imports in retaliation for their tariff on US milk Regulations restrict development in many areas Interest rates are a bit higher I still like this sector because of the demographic forces and obvious need for more supply There is always a market clearing price
Energy prices Increases might threaten the US economy but will be good for
Tax policy that tax revenues have increased a result he attributes to the lower rates from the Trump tax cut He suggests With just the tiniest bit of spending restraint we could see the budget deficit hold steady or decline between now and year end It is pretty early in the game to draw conclusions here
Economic growth Looking a bit better with current nowcast results of 3 4 Worries Immigration limitations hit potential growth as do trade restrictions In total these may reduce GDP by more than 1 We are still headed for solid growth but it will be less than it might have been
Net neutrality Under FCC control and the Trump panel ended the policy The Senate may force a vote on this issue but it appears to be mostly symbolic I originally expected serious Congressional resistance but it never really developed
Drug prices This week s big announcement about lowering drug prices was My long term opinion has been that the demand for important drugs is strong the balance between development costs and price must be addressed Finally the President has little power beyond the bully pulpit to have a big impact So far the stocks reflect the political commentary
As usual I ll save my overall personal conclusions for today s Final Thought
Quant Corner
We follow some regular featured sources and the best other quant news from the week
Risk Analysis
I have a rule for my investment clients Think first about your risk Only then should you consider possible rewards I monitor many quantitative reports and highlight the best methods in this weekly update
The Indicator Snapshot
Short term trading conditions have improved The borderline rating was almost poor enough to take our trading models out of the market A strength of our modeling approach Thanks Vince is a touch more patience than shown by many technical systems This has a mild cost and can reap great rewards This week was a good example We continue to monitor the technical health measures on a daily basis The long term fundamentals and outlook are little changed
A notable feature of the chart is that we have increased the nine month recession odds to a chance of 25 While this is significantly higher than it has been during the rally it does not yet represent a real threat Instead of thinking of the odds as higher than before we must keep in mind the continuing evidence that a near term recession is unlikely The odds are only slightly higher than the long term average
That said we watch this quite closely and plan to reduce position sizes if the risk grows much larger
The Featured Sources
Business cycle analysis via the C Score
Strong quantitative indicators for both economic and market analysis
All things earnings for the overall market as well as many individual companies
Business cycle indicator and market timing tools None of Georg s indicators signal recession
and Jill Mislinski Regular updating of an array of indicators Great charts and analysis
Guests Ben Leubsdorf reporting the results of the latest WSJ poll of private sector economists He does a nice job of describing and analyzing the conclusions but his lede is that the expansion is likely to end in 2020 This was the conclusion of 59 of those surveyed
I made a polite objection on Twitter noting that no one could forecast a recession more than a year ahead of time and that the age of the economic cycle was not predictive I got a polite reply but I understand that his job is to report the WSJ survey There must be a better process for covering recession potential You could for example focus on those with special expertise on this topic instead of looking to generalists
James Picerno does his at those predicting recessions Read the entire post to see the range of speculation lacking method Read the prior two installments to see some forecasting history As I have also recently noted he sees the bogus forecasts as moving farther out in time to improve the odds
Insight for Traders
Check out our weekly Stock Exchange post We combine links to important posts about trading themes of current interest and ideas from our trading models we asked fellow traders if they had a real strategy The key comparison is between a line on a chart and interpretive analysis from Dr Brett Steenbarger In addition to this customary educational segment we discussed some stock ideas and updated the ratings lists for Felix and Oscar this week featuring the S P 500 stocks has taken the lead role on this post using information both from me and from the models He is doing a great job presenting a wealth of new ideas and information each week
While I emphasize trading in the Stock Exchange series it often has implications for long term investors It is worth a visit
Insight for Investors
Investors should have a long term horizon They can often exploit trading volatility I remind investors of this each week but now is the time to pay attention
Best of the Week
If I had to pick a single most important source for investors to read this week it would be behavioral scientist Steve Wendel s article He takes four of the common cognitive biases and shows why they are useful in everyday life He has a great example of how well they work on hamburgers Feel free to substitute your favorite food he invites He then applies the same useful heuristics to investing I cannot quote much without giving away the whole story so please read this excellent brief post
The decisions our minds make which we call biases in the context of investing are actually quite smart Investment biases are smart shortcuts applied to the wrong situation Thus there s a very good reason why they are difficult to overcome they generally help us Since we can t simply ignore them or easily override them we have to acknowledge them and work with them or around them Everyone has them advisors fund managers pension investment committees etc Our investment biases are a natural part of how our minds are wired they don t disappear because someone has a particular base of expertise in investing
This article provides an excellent test of what you need to do to be successful as an investor or as a financial advisor
Market Outlook
covers earnings calls by reviewing transcripts and presentations This is an excellent source for those of us wondering whether economic growth is reflected in corporate profits This week s report highlights overall optimism solid growth a strong labor market and a CEO expectation that the business cycle could continue for several more years They love tax reform but are feeling some cost pressures
Corporate buybacks are bullish for investors Andrew Bary s analysis is thorough looking at many stocks and considering counter arguments in an even handed way Buybacks add an effective yield of about 3 combined with a 1 9 dividend yield on the S P 500
Stock Ideas
Energy stocks HT Calculated Risk considers both increasing demand and the potential supply additions The conclusion Equities still look to have plenty of running room ahead of them The futures forward curve shows the history of each futures contract The overall levels have increased dramatically and there is backwardation in each contract This means that for any given contract the price is lower in the future
A rebound in Synaptics NASDAQ SYNA discusses the company s plan for diversifying from the mobile phone and into the IoT
Some from Colorado Wealth Management
Value investing
analyzes recent trends concluding that any rebound in value investing seems to be concentrated in smaller cap stocks
Personal Finance
Seeking Alpha Senior Editor Gil Weinreich has expanded his excellent series for financial advisors and serious individual investors to include some podcasts This week I especially enjoyed his timely post He expands on about investing in South Korean stocks He presents a nice account of the tension in 2017 and the current improving relations It is an object lesson in why it is often profitable but very risky to buy at times of maximum stress Patience may lead to a better balance between the two
Abnormal Returns is always worth reading with many links on an array of interesting topics Wednesday the focus is on There always several good choices My favorite this week is a Katherine Chiglinsky and Ben Steverman on annuities A key sentence quoted from a financial advisor Historically insurance products have been sold and not bought The commission structure and different regulations for insurance agents have given these products a bad name even though it may be appropriate for some
Watch out for
Elite dividend stocks that the yield sometimes comes at the cost of a lower stock price There has been extra pressure on some with the highest yields The article has a good analysis of what to look for
Pacific Gas and Electric NYSE PCG the company s problems related to last fall s wildfires He notes that the risk remains very real
Final Thoughts
Finding attractive stocks is easier when you have the demographic political and economic winds at your back
While I certainly do not have all the answers about the impact of Trump policy initiatives there is now some clarity Here are some strong approaches
Spot improving sectors Some have benefited while others have not Brian how the sector earnings and revenue estimates have changed This is a factual non political account just the kind of information we seek While all sectors have improved there are some clear cut winners and laggards
Get ahead of the capital flows Davidson notes that these flows always occur after events become well known He analyzes in detail the relationship between the dollar oil prices and the perceived economic effects He concludes
Current trends in multiple economic indicators covered in recent notes speak to continued global economic expansion The pace of this expansion is likely to surprise many by its strength Recent earnings reports and forecasts for the next few years by well known and respected CEOs in multiple sectors remain very positive The current gloom should dissipate fairly quickly
It is important to look beyond absolute prices of individual stocks and the market If avoiding new highs was your only investment rule you could never participate in a rising market Dr Ed Yardeni notes
The forward P E has been very noisy so far this year on fears of higher inflation tighter Fed policy and trade protectionism It has masked the underlying bullish trend of the S P 500 forward earnings Thanks to Trump s tax cuts at the end of last year this weekly measure of industry analysts consensus estimates for earnings over the coming 52 weeks has been soaring since the start of the year
My Boom Bust Barometer BBB which is the ratio of the CRB raw industrials spot price index to initial unemployment claims continues to be highly correlated with S P 500 forward earnings The BBB rose to a record high at the end of April The BBB is also highly correlated with the S P 500 stock price index but less so than with forward earnings That s because there is more noise than signal in the S P 500 than in forward earnings as a result of the short term volatility of the P E
Focusing on price alone is a serious but common mistake
If that sounds familiar send for my free paper on the Top Investor Pitfalls Whether you are trying to preserve wealth or to build your assets there are some great opportunities right now If you are having trouble pulling the trigger organizing your thoughts or finding attractive stocks send a note to main at newarc dot com I have written papers on each of these topics We will happily send some free resources and provide a consultation if you wish
I m more worried about
Iran It appears that the European allies may split with the US The chance for retaliation is higher Most experts question whether bilateral negotiations are possible
Deterioration in the tariff and trade talks The high level meetings have produced no progress on an issue of great economic significance The market rates this as a bigger threat than do economic analysts I agree with the market
I m less worried about
North Korea The upcoming Summit provides an attractive opportunity Perhaps the time is finally right
Technical market concerns Those watching charts got some relief last week |
PCG | Pacific Gas Electric PCG Down 2 3 Since Earnings Report Can It Rebound | A month has gone by since the last earnings report for Pacific Gas Electric Co NYSE PCG Shares have lost about 2 3 in that time frame
Will the recent negative trend continue leading up to its next earnings release or is PCG due for a breakout Before we dive into how investors and analysts have reacted as of late let s take a quick look at its most recent earnings report in order to get a better handle on the important drivers PG E Falls Short of Earnings Revenue Estimates in Q1PG E Corporation reported adjusted operating earnings per share of 91 cents in first quarter 2018 which missed the Zacks Consensus Estimate of 1 03 by 11 7 Earnings were also down 14 2 from 1 06 in the year ago quarter GAAP earnings during the reported quarter were 86 cents per share down from 1 13 in the prior year quarter Revenue UpdatePG E s total revenues of 4 056 million missed the Zacks Consensus Estimate of 4 233 million by 4 2 The top line declined 5 from the year ago quarter s level Electric revenues were down 3 7 from the prior year quarter s tally and natural gas revenues declined 8 1 year over year Operational HighlightsTotal operating expenses as of Mar 31 2018 were 3 457 million down 1 6 from 3 401 million as of Mar 31 2017 Costs declined due to lower cost of electricity as well as cost of natural gas Operating income as of Mar 31 2018 came in at 599 million down from 867 million of Mar 31 2017 Interest expenses in first quarter 2018 were 220 million compared with 218 million in the year ago period GuidancePG E has not provided guidance for 2018 GAAP earnings and adjusted earnings from operations owing to the uncertainty related to the Northern California wildfires in October 2017
How Have Estimates Been Moving Since Then
In the past month investors have witnessed a downward trend in fresh estimates There has been one revision lower for the current quarter
Pacific Gas Electric Co Price and Consensus
VGM Scores
At this time PCG has an average Growth Score of C though it is lagging a bit on the momentum front with a D However the stock was allocated a grade of A on the value side putting it in the top quintile for this investment strategy
Overall the stock has an aggregate VGM Score of B If you aren t focused on one strategy this score is the one you should be interested in
Our style scores indicate that the stock is more suitable for value investors than growth investors
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift Interestingly PCG has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
PCG | PG E PCG Q3 Earnings Surpass Estimates | PG E PCG came out with quarterly earnings of 1 13 per share beating the Zacks Consensus Estimate of 1 12 per share This compares to earnings of 1 12 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 0 89 A quarter ago it was expected that this utility holding company would post earnings of 0 95 per share when it actually produced earnings of 1 16 delivering a surprise of 22 11
Over the last four quarters the company has surpassed consensus EPS estimates two times
PG E which belongs to the Zacks Utility Electric Power industry posted revenues of 4 38 billion for the quarter ended September 2018 missing the Zacks Consensus Estimate by 3 67 This compares to year ago revenues of 4 52 billion The company has not been able to beat consensus revenue estimates over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
PG E shares have added about 5 8 since the beginning of the year versus the S P 500 s gain of 1 9
What s Next for PG E
While PG E has outperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for PG E was mixed While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 3 Hold for the stock So the shares are expected to perform in line with the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 61 on 4 25 billion in revenues for the coming quarter and 3 80 on 17 19 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Utility Electric Power is currently in the top 28 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
XOM | Iraq lures investors to boost its oil output as OPEC debates cuts | By Dmitry Zhdannikov Ahmed Rasheed and Ahmad Ghaddar LONDON BEIRUT Reuters As OPEC gathers in Vienna next month to consider cutting its oil output a lower profile event in Baghdad on the same day will signal Iraq s longer term ambition to do precisely the opposite Nov 30 is both the date when OPEC ministers meet in the Austrian capital and the deadline set by Iraqi oil minister Jabar Ali al Luaibi for international firms to submit bids to help it develop 12 small and medium sized oil fields Crude output in Iraq OPEC s second largest producer is already rising dramatically despite corruption poor infrastructure and the fight against Islamic State This is complicating OPEC s efforts to revive prices by making its first output cut since the 2008 global financial crisis Ministers from the Organization of the Petroleum Exporting Countries are supposed to decide in Vienna which member states will make the cuts under an outline agreement struck last month Iraq says it will not reduce output because it needs oil money to combat Islamic State and Prime Minister Haider al Abadi offered strictly limited support on Tuesday We are prepared to cooperate on the correct basis he said We want oil prices to increase At around 50 a barrel crude prices are less than half their levels in mid 2014 and OPEC is seeking a production deal that will last at least six months Developing the 12 Iraqi oil fields which lie in southern and central areas away from Islamic State strongholds will take longer than that Nevertheless fellow OPEC members and rivals need read no further than the terms of the new tender to understand Baghdad s intentions The tender document sets quick output gains as the main requirement to win the contracts Baghdad also wants maximum revenue including from selling gas produced as a by product of the crude extraction rather than simply burning it off After achieving commercial production in the first phase of development the Oil Ministry s document says in the second phase the sustainable high production level will be achieved along with complete utilization of associated gas With oil reserves of 143 billion barrels Iraq controls almost every tenth barrel of oil in the ground in the world Aside from security problems its crude is as cheap and easy to extract as in Saudi Arabia or Iran but its energy industry suffered decades of under investment under Saddam Hussein who was overthrown by a U S led invasion in 2003 Since then Iraq has signed deals with majors such as Exxon Mobil N XOM BP L BP and Royal Dutch Shell L RDSa to develop its giant fields Production has almost doubled to 4 7 million barrels per day this year from 2 4 million bpd at the start of the decade But the growth has lagged the initial forecasts of production at 9 million bpd by 2018 equal to Saudi Arabia s Held back by red tape infrastructure constraints and difficult contract terms Iraq is now targeting a more modest 5 5 million to 6 million bpd by 2020 The oil ministry is in a hurry Luaibi s plan is to boost production as quickly as possible to mitigate damage from lower prices generate more revenues and have additional crude to repay contractors This is the best way to keep everybody happy a senior official with state run South Oil Co said Another reason for the push to develop smaller fields is that talks with the majors on revising their contracts for operating the giant fields in southern Iraq have stalled We can t just waste time and run round in circles with these tough talks said the official who declined to be named Under service contracts awarded since 2003 the oil ministry pays the operators a fixed dollar denominated fee for every barrel of oil produced While the model worked well for Baghdad when prices were high it is now paying the same fees while its revenue from oil sales is significantly lower NEW CONTRACT MODEL An executive from a company bidding for one of the new contracts said that Luaibi wants to leave his mark by ramping up production quickly Iraq has already pre qualified 19 companies for the round including giants such as Glencore L GLEN Russia s Rosneft MM ROSN and the UAE s Mubadala Oil The fields might be small or midsize by Iraqi standards but they are significant by anybody else s Nine of the fields together hold 2 3 billion barrels equal to the entire reserves of Britain which currently produces around 1 million bpd The new tenders also signal a departure from existing technical service contracts TSCs under which some oil producers complained of late payments by Baghdad Luaibi wants to tear apart old contracts and make them work better for Iraq and oil firms He is telling oil firms keep investing we will find a way to pay you one of the executives involved in bidding said New deals will be awarded based on bilateral and direct negotiations between the oil ministry and oil companies moving closer to production sharing contracts PSCs when companies get a percentage of the oil output instead of being paid a fee for their work Their structures are likely to vary reflecting the differing geologies of the various fields and consequently differing methods of extracting the crude In a country like Iraq with so much diversity in the oil fields it s impossible to have one contract system This is an evolution towards a hybrid Iraqi contract model combining elements of TSC and PSC managing director of UAE based Manaar Energy Group Jaafar Altaie said CLAWING BACK MARKET SHARE Iraq has long said it believes it was cut out of the market in the 1990s when the government of Saddam Hussein was under international sanctions and hence it has lost its market share to rival OPEC producer Saudi Arabia Officials say that as Iraq tries to retake its second city of Mosul from Islamic State it should get the same exemptions from OPEC output restrictions as Iran Nigeria and Libya whose crude production has been hit by conflict and sanctions We are fighting a vicious war Luaibi said this week
Veteran oil watcher and founder of Petromatrix consultancy Oliver Jakob says a third of OPEC s member states are now pleading special circumstances for why they should not accept output caps As a result Jakob has come up with a new way of spelling out the OPEC acronym the Organisation of Producers Exempt from Cuts |
XOM | New York court orders Exxon PwC to comply with NY AG subpoena | Reuters The New York Supreme Court ordered Exxon Mobil Corp N XOM and PwC to comply with a subpoena issued by the New York Attorney General in August related to PwC s auditing of the oil company Attorney General Eric Schneiderman s office moved the court on Oct 14 to compel PwC to hand over certain documents after Exxon said it would not permit the auditor to do so
Schneiderman s office is investigating Exxon Mobil s accounting practices and why the oil major hadn t written down the value of its assets in the wake of a slump in oil prices Reuters reported earlier |
XOM | Exxon eyes setting up a trading division FT | Reuters Exxon Mobil Corp N XOM is weighing building a full scale trading division as it looks to counter a more than two year rout in oil prices the Financial Times reported on Thursday citing people familiar with the matter The downturn in oil prices is prompting some Exxon executives to consider the case for establishing a trading division that buys and sells other producers crude and refined products as well as its own the FT reported Exxon the world s largest publicly traded oil producer is expected to report its third quarter results on Friday
The company was not immediately available for comment |
XOM | FT Exxon considers setting up full scale trading division | ExxonMobil NYSE XOM 0 2 is considering building a full scale trading division for the first time in its history as it searches for new ways to boost profits during the oil price slump Financial Times reports The move would be a major change for a company that has deliberately shunned trading other producers oil but the two year oil downturn has prompted some XOM execs to consider the case for establishing a trading division that buys and sells other producers crude and refined products as well as its own according to the report The large trading divisions of BP LON BP Royal Dutch Shell LON RDSa and Total have earned substantial profits during the downturn which surely has caught the eye of XOM top brass |
CSCO | Cisco Not To Be Charged By U S In Russia Bribery Probe | Cisco Systems Inc NASDAQ CSCO recently announced that the U S regulatory authorities have decided not to carry out any enforcement actions against the company with regard to alleged violation of anti bribery law in Russia and its neighboring countries Internal Investigation Leads to Clean ChitAs per a media report published in The Wall Street Journal following the allegations Cisco had investigated the matter internally by examining the practices and operations of certain resellers located in Russia and the neighboring nations The objective of the internal investigation was to determine if the company had violated the Foreign Corrupt Practices Act which prohibits bribing foreign officials to keep or gain new business assignments Roxane Marenberg Cisco s Vice President of the Compliance Systems Division threw some light on the investigation through a blog post on the company s website by the end of 2013 In that blog post she wrote about business ethics and revealed that Cisco in no way violated the anti bribery law In 2014 Cisco disclosed all its findings from the internal investigation to the Securities and Exchange Commission and the Department of Justice On Thursday the company announced that both the regulatory authorities have declined to probe the matter further Technically SpeakingAs we can see in the daily chart of Cisco price is making higher highs but the 14 period Money Flow Index is unable to follow the price trend and is making lower highs instead This is known as negative divergence This indicates that though price is trending higher volume doesn t support the uptrend This indicates a probable reversal in the short termOn Sep 8 i e the day of the annual report announcement Cisco opened the day at 31 72 reached an intraday high of 31 75 and fell to an intraday low of 31 42 before closing the session at 31 47 Volume also increased from the previous day s session This indicates that there is good supply at higher levels On Sep 9 the stock fell further to close the day at 30 85 again on higher volume Going forward the stock may fall further to take support at the 30 00 level If that level breaks the next support zone is at 29 40 to 28 70 Zacks Rank Key PicksCISCO SYSTEMS Price At present Cisco carries a Zacks Rank 3 Hold Some better ranked stocks in the broader technology space are Lantronix Inc NASDAQ LTRX Netgear Inc NASDAQ NTGR and Radcom Ltd NASDAQ RDCM each sporting a Zacks Rank 1 Strong Buy You can see Interested in IPOs Check out the special edition of Zacks Friday Finish Line below where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 see Confidential from Zacks Beyond 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 |
CSCO | Cisco Prices 6 25B Senior Notes Rated A1 By Moody s | Shares of Cisco Systems Inc NASDAQ CSCO have been scaling steadily higher over the last 12 months The company s stock provided a return of 19 2 as compared to the S P 500 s 6 7 over the period
The upside can be primarily attributed to the company s strong market position a wide product range initiatives for growth new investments and dividend payout Moreover a gradual shift towards cloud computing and increasing data flow on computer networks are further helping the stock climb higher However on the flip side Chinese competition remains a matter of concern for the company
Cisco has recently announced the pricing of senior unsecured notes aggregating 6 25 billion These bonds have been issued in five tranches of different amounts with varying coupon rates and maturity dates The offering is expected to close on Sep 20 2016 subject to customary closing conditions
Out of these notes 500 million carrying an interest at a floating rate equal to three month LIBOR plus 34 basis points will mature in 2019 Senior Notes worth 1 5 billion 2 billion and 750 million with annualized interest rate of 1 400 1 850 and 2 200 are due to mature in 2019 2021 and 2023 respectively
Additionally another 1 5 billion worth of senior notes having an annualized interest rate of 2 500 will mature in 2026
Management intends to use the net proceeds for general corporate purposes These may include share repurchases debt repayment including the repayment of previously issued senior unsecured notes acquisitions investments additions to working capital capital expenditures cash dividends or investments in its subsidiaries
Moody s Rating
Moody s Investor Services the credit rating agency of Moody s Corporation assigned an A1 rating to the Notes The A1 rating carries a stable outlook
The rating was based on the Internet protocol IP provider s strength in network equipment domain aided by its broad and innovative product line expansive operations and distribution end to end networking capabilities and advanced technology development abilities Despite intensifying competition from several smaller players these key points helped the company to sustain its market share
In addition the company s strong footing in the networking space cost efficiency and a sturdy balance sheet influenced the rating The company has around 66 billion in cash and highly liquid investments
The company maintains strong liquidity and has moderate financial leverage This enables the company to return value to shareholders through regular share repurchases and dividend payouts Moreover it allows the company to invest aggressively to expand its core business and effectively deal with competitive challenges
Technically Speaking
As we can see from the Daily chart of Cisco above price has broken out of a Rising Wedge pattern to the downside along with a Negative Divergence with the 14 period Money Flow Index wherein price is making higher highs but the oscillator is making lower highs indicating that volume is drying up on the way up This indicates that the stock lacks the energy to go higher in the short term and a reversal is very likely
In the short term the stock may fall further to take support at the 27 level
Zacks Rank Key Picks
CISCO SYSTEMS Price
At present Cisco carries a Zacks Rank 3 Hold
Some better ranked stocks in the broader technology space are Lantronix Inc NASDAQ LTRX Netgear Inc NASDAQ NTGR and Radcom Ltd NASDAQ RDCM sporting a Zacks Rank 1 Strong Buy You can see
Interested in IPOs Check out the special edition of Zacks Friday Finish Line below where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 see
Confidential from Zacks
Beyond 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 | 7 Top Market Beating Dividend ETFs To Buy Now | Dividend investing is in vogue since the start of the year given the instability in the market and global growth concerns The broad equity markets are currently near their record highs but uneven global economic growth uncertain Fed policy Brexit U S election and geopolitical tensions are still weighing heavily on the market Meanwhile bond yields have declined sharply boosting the demand for dividend paying stocks Though the Fed is on track with its gradual rate increase plan for later this year with inflation faring well and the job market strengthening the hike will not come anytime soon So investors have become defensive and shifted their focus to dividend products that provide stability and safety in a rocky market The companies that pay dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis The dividend paying securities are the major sources of consistent income for investors when returns from equity market are at risk read While there are plenty of options in the dividend ETF world we have highlighted seven funds from the category that are clearly outpacing the broad market indices by wide margins and have a Zacks ETF Rank of 1 Strong Buy or 2 Buy suggesting their continued outperformance In fact these ETFs hit fresh highs in yesterday s trading session and are solid options for investors seeking yields in a low rate environment as well as some returns in uncertain markets SPDR S P Dividend ETF TO SDY This is one of the popular and liquid ETFs in the dividend space with AUM of over 13 6 billion and average daily volume of more than 1 million shares This fund provides exposure to 109 U S stocks that have been consistently increasing their dividends every year for at least 25 years This can be done by tracking the S P High Yield Dividend Aristocrats Index Though the fund is slightly skewed toward the financial sector with 24 2 industrials utilities and consumer staples make up for a nice mix in the portfolio with a double digit allocation each The fund charges 35 bps in fees per year and yields 2 45 in annual dividend The ETF touched an all time high of 83 48 per share in yesterday s trading session gaining about 14 so far this year It has a Zacks ETF Rank of 2 read First Trust Value Line Dividend Index Fund This ETF tracks the Value Line Dividend Index giving investors exposure to about 184 companies that have a Value Line Safety Ranking of 1 or 2 Value Line selects those companies that have a higher than average dividend yield as compared with the indicated dividend yield of the Standard Poor s 500 Composite Stock Price Index This results in an equal weight approach for individual securities albeit with some concentration risk from a sector look Utilities takes the top spot with 24 of assets followed by financials 18 2 industrials 12 6 and consumer staples 12 5 The fund is a bit pricier than many other products in the dividend space charging investors 70 bps a year in fees It has accumulated 1 9 billion in its asset base while sees good volume of more than 455 000 shares a day on average The ETF has surged 12 7 in the year to date time frame and hit a fresh high of 26 81 per share It yields 2 16 in annual dividend and has a Zacks ETF Rank of 2 iShares Select Dividend ETF This fund provides exposure to the high dividend paying U S equities with a 5 year history of dividend growth It follows the Dow Jones U S Select Dividend Index and holds 97securities in its basket The ETF is widely diversified across components as no single security holds more than 3 89 of total assets However about 31 5 of the portfolio is dominated by utilities while financials industrials and consumer discretionary also receive double digit exposure each The fund is one of the largest and popular ETF in the large cap space with AUM of 15 3 billion and average daily volume of more than 1 1 million shares It charges 39 bps in fees per year from investors and has an annual dividend yield of 3 14 DVY hit record high of 84 92 and has moved higher by about 13 7 in the year to date time period It has a Zacks ETF Rank of 2 First Trust Morningstar Dividend Leaders Index Fund LON FDL With AUM of 1 5 billion the fund follows the Morningstar Dividend Leaders Index In total it holds 95 stocks that have shown the highest dividend consistency and sustainability The top two firms Exxon Mobil NYSE XOM and AT T NYSE T dominate the returns of the fund holding nearly 10 share each Other firms hold less than 7 of assets Consumer staples makes the top sector with 21 4 while utilities telecom services energy and industrials round off the next spots with a double digit exposure each Volume is solid as it exchanges nearly 565 000 shares a day on average while expense ratio comes in at 0 45 The fund reached its all time high of 26 55 per share and has added about 12 6 so far this year It has an annual dividend yield of 3 16 and a Zacks ETF Rank of 2 read iShares Core High Dividend ETF This ETF offers exposure to 73 high quality and high dividend stocks and tracks the Morningstar Dividend Yield Focus Index It is highly concentrated on the top firm XOM at 9 9 while other firms hold less than 6 8 share The product is slightly tilted toward energy with 20 8 share closely followed by consumer staples 18 3 healthcare 17 2 and information technology 12 8 The fund is among the largest and most popular in the space with AUM of about 5 6 billion while charging 12 bps in fees per year It trades in solid volume of more than 492 000 shares a day and sports a dividend yield of 3 53 HDV hit its record high of 81 63 per share representing a gain of about 12 in the year to date time frame HDV has a Zacks ETF Rank of 1 read PowerShares Dividend Achievers Portfolio V PFM This fund has amassed 290 1 million in its asset base and trades in lower volume of around 37 000 shares a day on average Expense ratio comes in at 0 55 The product provides exposure to the companies that have increased their annual dividend for 10 or more consecutive fiscal years by tracking the NASDAQ US Broad Dividend Achievers Index The fund is widely diversified across 274 securities with each accounting for no more than 4 15 share From a sector look about one fourth of the portfolio is dominated by consumer staples while industrials 13 5 information technology 10 9 and energy 10 7 round off the next three spots PFM hit all time high of 22 45 representing a gain of about 9 5 in the year to date timeframe It has an annual dividend yield of 2 21 and a Zacks ETF Rank of 2 WisdomTree High Dividend Fund This ETF provides exposure to the high dividend yielding stocks by tracking the WisdomTree High Dividend Index It holds 439 securities in its basket with moderate exposure to each security as none holds more than 5 39 of total assets From a sector look consumer staples energy financials telecom services and utilities occupy the top positions with a double digit exposure each The fund has accumulated about 1 1 billion in AUM and trades in moderate volume of 63 000 shares per day on average It charges 38 bps in annual fees and has a dividend yield of 3 25 per annum DHS has climbed 12 1 in the year to date time frame and hit an all time high of 65 54 per share It has a Zacks ETF Rank of 1 |
XOM | TOTAL French Refineries Resuming Work Post Labor Strike | France based integrated global oil and gas company TOTAL S A TO TOT announced yesterday that its refineries in France are gradually resuming normal operation Operations at these refineries were halted by protest from labor unions against reforms in labor laws TOTAL has the largest refining capacity in France and operates five out of the eight refineries there TOTAL s French RefineriesThe five refineries in Grandpuits La Mede Donges Feyzin and Normandy refined 756 000 barrels per day during the first quarter of 2016 which was nearly 36 of the total refinery throughput volumes of the company During 2015 the company made a plan to transform and upgrade its two refineries in La Mede and Donges The motive behind the upgrade plan was to make these refineries capable of meeting the changing demand dynamics and securing the long term performance of the company What Led to the Labor Strike The French government wanted to reform the existing labor laws of the country with an objective of lowering the unemployment rate which has reached almost 10 However the hardline labor union of France CGT believes it will make hiring and firing easier for the employers and will be against the best interest of existing employees The labor strike has also touched the garbage management and state railway companies of France which is yet to die down completely The Positive FalloutThe majority of TOTAL s employees in its Grandpuits Donges Feyzin and Normandy refineries have voted against the ongoing strike and are wanting to resume work TOTAL said that its Grandpuits and La Mede refineries have started normal operations while the other three refineries are yet to resume normal activities due to unrest among a small section of workers Exxon Mobil NYSE XOM also operates two refineries in France having a combined capacity of 352 000 barrels per day Normal operations in its two plants were impacted by the strike but were not completely brought to a halt Reports are that operations are gradually getting back to normalcy This will undoubtedly bring cheer to the French government as it is all set to host Euro 2016 from today Millions of football fans will have to travel to different stadiums across the nation The congestion of cars at gas stations would have made it difficult for the supporters to reach their destinations without hassle Global PictureAmid the rebalancing in the commodity market oil prices are gradually appreciating from record lows The decline in existing oil reserves will see an increase in demand for the refiners TOTAL with its well spread refineries across the globe is well equipped to gain from this surge in demand Zacks RankTOTAL currently has a Zacks Rank 3 Hold A couple of better ranked stocks in the same space are Braskem S A NYSE BAK and PetroChina Co Ltd NYSE PTR both sporting a Zacks Rank 1 Strong Buy Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
XOM | The Zacks Analyst Blog Highlights SPDR S P Dividend ETF First Trust Value Line Dividend Index Fund IShares Select Dividend ETF First Trust Morningstar Dividend Leaders Index Fund And IShares Core High Dividend ETF | For Immediate Release
Chicago IL June 13 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 SPDR S P Dividend ETF First Trust Value Line Dividend Index Fund iShares Select Dividend ETF First Trust Morningstar Dividend Leaders Index Fund and iShares Core High Dividend ETF
Today Zacks is promoting its Buy stock recommendations
Here are highlights from Friday s Analyst Blog
Top Market Beating Dividend ETFs to Buy Now
Dividend investing is in vogue since the start of the year given the instability in the market and global growth concerns The broad equity markets are currently near their record highs but uneven global economic growth uncertain Fed policy Brexit U S election and geopolitical tensions are still weighing heavily on the market
Meanwhile bond yields have declined sharply boosting the demand for dividend paying stocks Though the Fed is on track with its gradual rate increase plan for later this year with inflation faring well and the job market strengthening the hike will not come anytime soon
So investors have become defensive and shifted their focus to dividend products that provide stability and safety in a rocky market The companies that pay dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis The dividend paying securities are the major sources of consistent income for investors when returns from equity market are at risk read
While there are plenty of options in the dividend ETF world we have highlighted seven funds from the category that are clearly outpacing the broad market indices by wide margins and have a Zacks ETF Rank of 1 Strong Buy or 2 Buy suggesting their continued outperformance In fact these ETFs hit fresh highs in yesterday s trading session and are solid options for investors seeking yields in a low rate environment as well as some returns in uncertain markets SPDR S P Dividend ETF
This is one of the popular and liquid ETFs in the dividend space with AUM of over 13 6 billion and average daily volume of more than 1 million shares This fund provides exposure to 109 U S stocks that have been consistently increasing their dividends every year for at least 25 years This can be done by tracking the S P High Yield Dividend Aristocrats Index Though the fund is slightly skewed toward the financial sector with 24 2 industrials utilities and consumer staples make up for a nice mix in the portfolio with a double digit allocation each The fund charges 35 bps in fees per year and yields 2 45 in annual dividend
The ETF touched an all time high of 83 48 per share in yesterday s trading session gaining about 14 so far this year It has a Zacks ETF Rank of 2 read First Trust Value Line Dividend Index Fund
This ETF tracks the Value Line Dividend Index giving investors exposure to about 184 companies that have a Value Line Safety Ranking of 1 or 2 Value Line selects those companies that have a higher than average dividend yield as compared with the indicated dividend yield of the Standard Poor s 500 Composite Stock Price Index This results in an equal weight approach for individual securities albeit with some concentration risk from a sector look Utilities takes the top spot with 24 of assets followed by financials 18 2 industrials 12 6 and consumer staples 12 5
The fund is a bit pricier than many other products in the dividend space charging investors 70 bps a year in fees It has accumulated 1 9 billion in its asset base while sees good volume of more than 455 000 shares a day on average The ETF has surged 12 7 in the year to date time frame and hit a fresh high of 26 81 per share It yields 2 16 in annual dividend and has a Zacks ETF Rank of 2
iShares Select Dividend ETF
This fund provides exposure to the high dividend paying U S equities with a 5 year history of dividend growth It follows the Dow Jones U S Select Dividend Index and holds 97securities in its basket The ETF is widely diversified across components as no single security holds more than 3 89 of total assets However about 31 5 of the portfolio is dominated by utilities while financials industrials and consumer discretionary also receive double digit exposure each
The fund is one of the largest and popular ETF in the large cap space with AUM of 15 3 billion and average daily volume of more than 1 1 million shares It charges 39 bps in fees per year from investors and has an annual dividend yield of 3 14 DVY hit record high of 84 92 and has moved higher by about 13 7 in the year to date time period It has a Zacks ETF Rank of 2 First Trust Morningstar Dividend Leaders Index Fund
With AUM of 1 5 billion the fund follows the Morningstar Dividend Leaders Index In total it holds 95 stocks that have shown the highest dividend consistency and sustainability The top two firms Exxon Mobil NYSE XOM and AT T dominate the returns of the fund holding nearly 10 share each Other firms hold less than 7 of assets Consumer staples makes the top sector with 21 4 while utilities telecom services energy and industrials round off the next spots with a double digit exposure each
Volume is solid as it exchanges nearly 565 000 shares a day on average while expense ratio comes in at 0 45 The fund reached its all time high of 26 55 per share and has added about 12 6 so far this year It has an annual dividend yield of 3 16 and a Zacks ETF Rank of 2 read iShares Core High Dividend ETF
This ETF offers exposure to 73 high quality and high dividend stocks and tracks the Morningstar Dividend Yield Focus Index It is highly concentrated on the top firm XOM at 9 9 while other firms hold less than 6 8 share The product is slightly tilted toward energy with 20 8 share closely followed by consumer staples 18 3 healthcare 17 2 and information technology 12 8
The fund is among the largest and most popular in the space with AUM of about 5 6 billion while charging 12 bps in fees per year It trades in solid volume of more than 492 000 shares a day and sports a dividend yield of 3 53 HDV hit its record high of 81 63 per share representing a gain of about 12 in the year to date time frame HDV has a Zacks ETF Rank of 1 read
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Today Zacks is promoting its Buy stock recommendations
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PCG | Plan to close PG E s Diablo Canyon nuclear plant OKd by California regulator | California s Public Utilities Commission approves a plan to close the state s last nuclear power plant PG E s PCG 0 3 Diablo Canyon in 2024 and 2025 when their federal operating licenses expire The utility had proposed to recover nearly 1 8B from customers to pay for the plant s shutdown but the PUC allows it to recover only 241M which could be used to retrain plant workers and pay for other shutdown costs PG E previously incurred 47M in pre tax charges related to the retirement of Diablo Canyon but does not expect to incur additional charges as a result of CPUC s final decision Now read |
PCG | PG E Corporation PCG Misses On Q1 Earnings And Revenues | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However warmer than normal winter remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the first quarter Zacks Consensus Estimate for earnings of 1 03 per share remained unchanged in the last 7 days Coming to the earnings surprise history PG E Corporation has surpassed the Zacks Consensus Estimate in three out of last four quarters resulting in a positive average surprise of 11 76 Zacks Rank Currently PG E Corporation has a Zacks Rank 3 Hold but that could change following its first quarter 2018 earnings report which has just released You can see We have mentioned below some of the vital information from this just revealed announcement Earnings PG E Corporation s earnings were below our earnings estimates The company s adjusted earnings per share came in at 91 cents per share which missed the Zacks Consensus Estimate of 1 03 per share by 11 7 Revenue PG E Corporation s total revenue of 4 056 million also missed the Zacks Consensus Estimate of 4 233 million by 4 2 Pacific Gas Electric Co Price and EPS Surprise Key Stats Lower year over year revenues from electric and natural gas segments led to lower earnings in first quarter Stock Price In the pre market trading session PG E Corporation s first quarter results made no significant impact on its share price Yet it would be interesting to see how the market reacts to the earnings release during the trading session today Check back later for our full write up on this PCG earnings report later 5 Medical Stocks to Buy NowZacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia AIDS muscular dystrophy hemophilia and other conditions New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline Early investors could realize exceptional profits |
XOM | Russia s Rosneft plans to take final investment decision on Far East LNG in 2017 18 | YUZHNO SAKHALINSK Russia Reuters Russia s Rosneft plans to take a final investment decision on its Far East LNG project in 2017 2018 according to a presentation by Rosneft department head Alexander Zharov at a conference on Wednesday
The presentation also showed that the production at the plant may start after 2023 Rosneft which partners with ExxonMobil NYSE XOM Sodeco and ONGC at the project plans to produce 5 million tonnes of LNG at the plant at the start with possibility of rising to 10 million tonnes in the future |
XOM | Exxon partners with NBA in U S and China | Reuters Exxon Mobil Corp N XOM said it has entered a multi year agreement with the National Basketball Association NBA to be its official marketing partner in the United States and China The partnership which aims to market Exxon s Mobil 1 motor oil is one of the first tie ups between the flagship brand and a major sports other than motor racing The financial terms of the deal were not disclosed
The oil giant ran television advertisements during the Rio Olympics to showcase its work on clean energy amid pressure to respond to global warming |
CSCO | Cisco Watch These Long Term Prices | With August behind us technicians get to peek at another spotlight on long term monthly charts Frequent readers and Twitter NYSE TWTR followers will know that I have been seeing very strong markets in technology stocks including some that have been around for a very long time And those two lead me to Cisco Systems NASDAQ CSCO
This stock lost over 90 of its peak value from the dot com days making a low in late 2002 And frankly since then it has not done much of anything For 14 years That is a whole lot of nothing Recent activity though has the stock poised for a possible major move higher The monthly chart below tells the story
This chart shows a tightening consolidation around a mid point at about 25 Since bouncing off of the bottom of the consolidation zone in late 2012 it has trended higher Now as it starts September it s at the top of the triangle It has support for continued upward price action from the rising and bullish MACD and a RSI in the bullish zone and rising
Prices To Watch
If the price continues higher and over the triangle there are a few price levels to watch that would add increasing confidence of a large move higher The first is a break of the triangle at about 32 Next is 33 15 This would be a move over the high bump in the chart from 2007 The third is 36 38 This is a 38 2 retracement of the move lower from the dot com crash A break over that 38 2 level and close on a monthly basis would then present a target move to either the 50 or 61 8 level That s the major move
Keep a close eye on this one |
XOM | Royal Dutch Shell RDS A Unveils New Plans Eyes No 1 Spot | Europe s largest energy producer Royal Dutch Shell LON RDSa plc reiterated plans to further cut costs and confirmed that the 3 year 30 billion asset sale program was well on track In its new mid term strategy the company announced several steps to cope with the lower for longer oil and pay down its ballooning debt following the 54 billion BG Group acquisition
According to Shell management these policies will help reassure investors about the company s ability to cover the all important dividend payment This has assumed significance after Shell had to dig into reserves for shareholder payouts during the first quarter when cash flow fell below the dividend bill
The group s Chief Executive hopes the new strategy will lift stock price improve shareholder returns to about 10 by the end of the decade and eventually catapult Shell to its glory days by making it the best oil investment ahead of Exxon Mobil Corp NYSE XOM
Let s look at the details of Shell s first strategy presentation since the BG deal closure in Feb
Asset Sales Plan on Target
Shell has been slow to progress on its promised 30 billion asset disposal plan by 2018 but said that it is likely to take big steps this year getting rid of 6 8 billion worth of non core properties The supermajor badly needs the sale proceeds to control its spiraling debt burden that jumped to 26 of its capitalization as of Mar 31 from 14 at 2015 year end
Lowers Capex Again
The Anglo Dutch group vowed to limit its spending for 2016 within 29 billion implying a cut from the previous estimate of 30 billion which itself was lower than an earlier projection of 33 billion For the period up to 2020 Shell has capped its capital expenditure within a range of 25 billion and 30 billion
Streamline Global Operations
The company on Tuesday also unearthed plans to trim its global activity by ending oil and gas operations in five to 10 countries and offloading 10 of its producing properties While keeping mum on the countries it might exit Shell made it clear that it wants to focus on 13 nations which would include Brazil Australia and the U S
Confirms Job Cuts
The Hague Netherlands based group confirmed another 2 200 job cuts as fallout of the BG deal in addition to the 2 800 announced previously In fact Shell has announced global headcount reduction in excess of 10 000 globally over the last two years
However rubbishing reports of the BG buy as costly CEO Ben van Beurden raised its target for savings from the acquisition by 1 billion to 4 5 billion by 2018
No Baby Shell
Meanwhile management declined reports that it was planning an initial public offering IPO of the company s mature assets in order to benefit from a sustained oil price recovery and refocus on core assets The new entity referred to as Baby Shell was rumored to consist of upstream assets in the UK Norway New Zealand Italy and Nigeria Also the confirmation of an IPO is expected within the next 12 months
Zacks Rank Key Picks
Royal Dutch Shell currently 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
Some better ranked players in the energy sector are McDermott International Inc NYSE MDR and North Atlantic Drilling Ltd NYSE NADL Both stocks sport a Zacks Rank 1 Strong Buy |
PCG | PG E 7 as concerns grow over potential link to California wildfires | PG E PCG 7 6 shares are suffering their worst week in nine years on speculation that downed power lines may have played a part in deadly wildfires racing across Napa Valley The California Public Utilities Commission sent a letter to the utility yesterday seeking to preserve all evidence with respect to the Northern California wildfires in Napa Sonoma and Solano Counties California s utility regulator has a history of conducting lengthy proceedings and investors are bailing out of the stock until more details are available says Bloomberg s Kit Konolige It s a case of shoot first and get answers later says utility analyst Paul Patterson of Glenrock Associates It s fear of the unknown potential costs that the company may face The patience level of California is very short because of the issues PG E s had before says Guggenheim analyst Shahriar Pourreza referring to the deadly 2010 San Bruno gas pipeline explosion and a power line conductor operated by PG E that ignited a fire in 2015 that burned 70K plus acres destroyed hundreds of structures and killed two people Now read |
PCG | PG E expects to restore all power to California fire areas by today | Pacific Gas and Electric NYSE PCG officials say they expect to restore power to all its customers in northern California fire zones by late today
PG E said last night that power had been restored to more than 92 of homes and businesses that lost power during the wildfires but 21K electric customers remain without power
With the winds dying down fire officials say they have apparently turned a corner against the wildfires that have devastated California wine country and other parts of the state over the past week
Now read |
PCG | California wildfire attorney says PG E could be liable for up to 6B damages | Pacific Gas Electric PCG 8 1 recoups a chunk of its steep losses from recent days perhaps as investors ascertain that Cal Fire and the California Public Utilities Commission have cited no evidence that the company contributed to any the deadly northern California wildfires shares are still down 18 since last Thursday But the speculation goes on with an attorney specializing in wildfire lawsuits saying PG E potentially could be on the hook for 5B 6B in damages if found liable for the wildfires From everything we ve learned it looks like PG E is responsible for at least some of the fires and likely to dwarf all the other ones that involved fires linked to California utilities Gerald Singleton tells CNBC Singleton claims there is a history of California s investor owned energy utilities generally failing to perform proper maintenance Now read |
PCG | PG E beats by 0 21 misses on revenue | PG E NYSE PCG Q3 EPS of 1 12 beats by 0 21 Revenue of 4 52B 6 0 Y Y misses by 300M Shares 1 3 PM Press ReleaseNow read |
PCG | This Blue Chip Poster Boy Has Taken A Beating | Guess which stock has plunged 40 in the past two months A high flying biotech firm A crazy Internet startup A crypto blockchain tea company NOPE It s Pacific Gas Electric NYSE PCG the ancient boring super stable blue chip utility |
PCG | PG E Corporation PCG Misses On Q4 Earnings Estimate | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the fourth quarter Zacks Consensus Estimate for earnings of 69 cents per share remained unchanged in the last 7 days Coming to the earnings surprise history PG E Corporation has surpassed the Zacks Consensus Estimate in the last four quarters resulting in a positive average surprise of 14 71 Zacks Rank Currently PG E Corporation has a Zacks Rank 3 Hold but that could change following its fourth quarter 2017 earnings report which has just released You can see We have mentioned below some of the vital information from this just revealed announcement Earnings PG E Corporation s earnings were below our earnings estimates Adjusted earnings per share came in at 63 cents per share which missed the Zacks Consensus Estimate of 69 cents per share by 8 7 Key Stats Per management the company s financial performance reflected its focus on safely and reliably providing clean and affordable service and making critical investments in a sustainable energy future for its customers Stock Price In the pre market trading session PG E Corporation s shares lost 4 2 that reflects investors dissatisfaction toward the fourth quarter results Yet it would be interesting to see how the market reacts to the earnings release during the trading session today Check back later for our full write up on this PCG earnings report later Pacific Gas Electric Co Price and EPS Surprise The Hottest Tech Mega Trend of AllLast year it generated 8 billion in global revenues By 2020 it s predicted to blast through the roof to 47 billion Famed investor Mark Cuban says it will produce the world s first trillionaires but that should still leave plenty of money for regular investors who make the right trades early |
PCG | PG E Corp Signals Strong Buy And Major Upside To 55 | Beaten down utility Pacific Gas Electric Co NYSE PCG has just signaled a major buy Friday the stock hit a 7 year low and reversed forming a bullish bottoming tail on the daily chart This is a strong buy signal on a utility that is fast recovering from the California wildfires The stock has fallen in the last 8 months from over 70 and is ripe for investors looking for a recovery story that has major upside I think it is very possible to see 55 on this in 2018 |
XOM | Oil hits two week lows as growing supplies stoke glut concerns | By Karolin Schaps LONDON Reuters Oil prices fell to roughly two week lows on Friday as news of rising Iranian exports and returning supplies from Libya and Nigeria fueled concerns that the global glut will persist Benchmark Brent crude futures fell below the 46 a barrel mark trading down 1 7 percent at 45 79 a barrel down 80 cents at 1045 GMT U S West Texas Intermediate futures were down 73 cents or 1 7 percent at 43 18 a barrel a two week low Both contracts have fallen 9 10 percent in one week underlining how volatile the oil market currently is We ve seen a lot of bearish news this week Libya Nigeria skeptical monthly reports from the IEA and OPEC and large stockbuilding in the U S so weak fundamentals are weighing on the market said Frank Klumpp oil analyst at Stuttgart based Landesbank Baden Wuerttemberg Iran is nearing its pre sanctions crude oil export levels after a source familiar with the country s tanker loading schedules said the third biggest OPEC producer had raised exports to more than 2 million barrels per day bpd in August Iran s August crude exports excluding condensate roughly doubled from a year ago to 2 11 million bpd the source said based on data compiled from tanker loading schedules Much of Iran s fresh output has found a home in Asia and Europe India s daily oil imports from Iran rose to the highest in at least 15 years in August according to trade sources and shipping data Austria s OMV said on Friday it had taken delivery of an Iranian crude oil spot delivery in Italy its first cargo from Iran since 2012 There are also signs of a return of output from Nigeria and Libya two countries whose crude exports have been hampered by conflict and unrest Libya has lifted force majeure at some of its main ports and is resuming oil exports the National Oil Corporation NOC said on Thursday Exports will resume immediately from Zueitina and Ras Lanuf and will continue at Brega exports will resume from Es Sider as soon as possible NOC Chairman Mustafa Sanalla said In Nigeria ExxonMobil NYSE XOM was making preparations to load a cargo of Qua Iboe crude at the end of September trading sources said its first since it imposed force majeure in July Traders were also eyeing weekly U S rig count data to be released by Baker Hughes on Friday Last week s data showed U S drillers had added seven oil rigs in the week to Sept 9 bringing the rig count to 414 the most since February The focus will turn to drilling activity in the U S with another rise expected to raise concerns about a recovery in U S output Australian bank ANZ said in a note
The United States has witnessed more growth in daily output than any other major producer thanks to the boom in shale oil production |
XOM | Crude hits fresh 2 1 2 week lows on fresh supply glut worries | Investing com U S oil futures fell to fresh two and a half week lows on Friday as rising exports in Iran Libya and Nigeria sparked fresh supply glut concerns
U S crude futures for October delivery were down 1 62 at 43 22 a barrel the lowest since September 2
On the ICE Futures Exchange in London the November Brent contract tumbled 1 65 to 45 80 a barrel close to Thursday s two and a half week trough of 45 67
Oil prices came under pressure after data showed that Iran s August crude oil exports jumped 15 from July to a five year high of more than 2 million barrels per day re approaching Tehran s pre sanctions shipment levels
In addition Libya said it is resuming oil exports from some of its main ports and has lifted related force majeure contractual clauses
Separately ExxonMobil NYSE XOM reportedly has a pipeline prepared to export Nigeria s Qua Iboe crude oil with the first cargo expected to load as early as the end of September
Meanwhile market participants were looking ahead to upcoming reports on U S consumer price inflation and consumer sentiment due later in the day after weak U S data on Thursday crushed expectation for an upcoming rate hike by the Federal Reserve
The Commerce Department reported on Thursday that U S retail sales fell 0 3 in August worse than expectations for a 0 1 decline It was the first decline in five months
In a separate report the Department of Labor said initial jobless claims rose less than expected last week pointing to further tightening in the labor market But the Labor Department also reported that U S producer prices were flat in August |
XOM | SEC investigating Exxon over asset valuation WSJ | Reuters The U S Securities and Exchange Commission is investigating how Exxon Mobil Corp N XOM has valued its assets in the wake of plunge in oil prices the Wall Street Journal reported citing people familiar with the matter The regulator sought information from Exxon and the company s auditor PwC in August the Journal reported The news follows reports last week that New York Attorney General Eric Schneiderman was investigating the company s accounting practices A more than 60 percent drop in oil prices has forced many integrated oil producers around the world to write down the value of their assets Exxon is the only major exception Exxon was not immediately available for comment The SEC did not confirm any ongoing investigation The company said in a filing in February that an assessment of its major risky assets showed that future undiscounted cash flows associated with such assets substantially exceed their carrying value
Exxon s shares were down about 0 9 percent at 83 06 in afternoon trading |
XOM | ExxonMobil unit to pay U S Montana 12 million to settle 2011 oil spill | WASHINGTON Reuters An Exxon Mobil Corp NYSE XOM affiliate has agreed to pay 12 million in natural resource damages to the federal government and the state of Montana to settle claims over a 2011 crude oil spill from one of its a pipeline the U S Justice Department said on Wednesday
In 2011 ExxonMobil Pipeline Company s 40 000 barrel per day Silvertip pipeline in Montana ruptured underneath the Yellowstone River releasing more than 1 000 barrels of crude and costing the company about 135 million to clean up |
XOM | Suncor Energy Cuts 2016 Output Projection After Wildfire | Canada s premier integrated energy company Suncor Energy Inc NYSE SU has come up with its new production guidance wherein it lowered the 2016 output projection The guidance cut follows the massive Canadian wildfire that has affected the company s production the most Extent of CutSuncor anticipates 2016 total production in the range of 585 000 620 000 barrels of oil equivalent per day BOE D down from the prior guidance of 620 000 665 000 BOE D Of the latest total annual output guidance oil sands production is expected between 375 000 Bbl d and 395 000 Bbl d Recovery UnderwayThe company s operations are being ramped up following the wildfire In fact Suncor is anticipated to come back to normal production by June end The base plant of Suncor will likely return to the pre fire level within seven days whereas by the third week of this month the company s drilling activities will likely get back to the normal rate Moreover management said that the consortium of Syncrude oil sands mining has decided to restart operations by late June In Syncrude Suncor has a 53 74 stake while the world s largest publicly traded oil company Exxon Mobil Corporation NYSE XOM holds a 25 interest It is to be noted that Suncor has maintained its prior guidance for 2016 oil sand cash operating cost at C 27 C 30 per barrel although the company had to combat the wildfire with much of its production getting hurt This is because the integrated player saved its variable expenses that offset the increased cost to fight the wildfire However due to the time taken to commence production the company s 2016 Syncrude cash operating costs rose to C 41 C 44 per barrel from the earlier projection of C 35 C 38 a barrel range Zacks Rank Key PicksCalgary Alberta based Suncor Energy currently carries a Zacks Rank 4 Sell implying that it will underperform the broader U S equity market over the next one to three months Some better ranked players in the energy sector are McDermott International Inc NYSE MDR and North Atlantic Drilling Limited NYSE NADL Both stocks sport a Zacks Rank 1 Strong Buy |
PCG | PG E declares 0 53 dividend | PG E NYSE PCG declares 0 53 share quarterly dividend 8 2 increase from prior dividend of 0 49 Forward yield 3 1 Payable July 15 for shareholders of record June 30 ex div June 28 Now read |
PCG | PG E declares 0 53 dividend | PG E NYSE PCG declares 0 53 share quarterly dividend in line with previous Forward yield 3 07 Payable Oct 15 for shareholders of record Sept 29 ex div Sept 28 Now read |
PCG | PG E Corporation PCG In Focus Stock Moves 7 5 Higher | PG E Corporation NYSE PCG was a big mover last session as the company saw its shares rise nearly 7 on the day The move came on solid volume too with far more shares changing hands than in a normal session This stock trading within a volatile range of 53 43 69 65 in the past one month time frame showed a sharp increase yesterday The company has not seen any estimate revisions in the past one month while the Zacks Consensus Estimate for the current quarter has also remained unchanged The recent price action is encouraging though so make sure to keep a close watch on this firm in the near future PG E Corporation currently has a Zacks Rank 3 Hold while its is negative Investors interested in the Utility Electric Power industry may consider ALLETE Inc NYSE ALE which has a Zacks Rank 1 Strong Buy You can see Is PCG going up Or down Predict to see what others think or The Hottest Tech Mega Trend of AllLast year it generated 8 billion in global revenues By 2020 it s predicted to blast through the roof to 47 billion Famed investor Mark Cuban says it will produce the world s first trillionaires but that should still leave plenty of money for regular investors who make the right trades early |
PCG | PG E Corp PCG Beats Q3 Earnings Misses Sales Estimate | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the third quarter Zacks Consensus Estimate for earnings of 94 cents per share remained unchanged in the last 7 days Coming to the earnings surprise history PG E Corporation has surpassed the Zacks Consensus Estimate in three out of the last four quarters resulting in a positive average surprise of 6 28 Zacks Rank Currently PG E Corporation has a Zacks Rank 3 Hold but that could change following its third quarter 2017 earnings report which has just released You can see We have mentioned below some of the vital information from this just revealed announcement Earnings PG E Corporation s earnings were above our earnings estimates Adjusted earnings per share came in at 1 12 beating the Zacks Consensus Estimate of 94 cents per share by 19 1 Revenue The company s revenues of 4 517 million for the third quarter missed the consensus estimate of 4 959 million Key Stats The company has reaffirmed its adjusted EPS for 2017 in the range of 3 55 3 75 per share Stock Price In the pre market trading session PG E Corporation s third quarter results made no significant impact on its share price Yet it would be interesting to see how the market reacts to the earnings release during the trading session today Check back later for our full write up on this PCG earnings report later Pacific Gas Electric Co Price and EPS Surprise Zacks Best Private Investment IdeasWhile we are happy to share many articles like this on the website our best recommendations and most in depth research are not available to the public Starting today for the next month you can follow all Zacks private buys and sells in real time Our experts cover all kinds of trades from value to momentum from stocks under 10 to ETF and option moves from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises You can even look inside exclusive portfolios that are normally closed to new investors |
XOM | Exclusive New Caspian fields to add at least 200 000 bpd to oil market by year end | MOSCOW Reuters Two major Caspian Sea oil fields scheduled to come on stream this year will together produce at least 200 000 barrels of crude per day bpd by the end of 2016 according to industry sources and a loading schedule seen by Reuters The production plans for the Kashagan field in Kazakhstan s sector and Lukoil s Filanovsky field in the Russian sector are the clearest sign yet that significant volumes from the projects will be going imminently on to a world market that already has a glut of supply possibly pushing down prices By the end of next year according to targets previously announced by the fields operators Kashagan and Filanovsky will between them produce about 500 000 bpd equivalent to about 0 5 percent of global production Production at the long delayed Kashagan offshore project will start in October this year according to industry sources who have seen Kazakh Energy Ministry documents on the field Output will initially be 75 000 bpd in October rising to between 150 000 and 180 000 in the November December period of this year the sources told Reuters citing the ministry documents Asked about the plan a spokeswoman for North Caspian Oil Company the Kashagan operator declined to give a breakdown of production figures for this year The Kashagan consortium comprises China National Petroleum Corp Exxon Mobil NYSE XOM Eni Royal Dutch Shell LON RDSa Total Inpex and Kazakh firm KazMunaiGas Filanovsky will export around 50 000 bpd of CPC blend a light Caspian crude between October and December this year according to a loading schedule a copy of which was obtained by Reuters
Representatives of Lukoil confirmed that production would start this year but declined to give figures for production volumes |
CSCO | Beyond Cisco 4 Impressive Networking Stocks To Bet On | As the second quarter earnings season winds down the technology sector results have been notably better than expected
Based on the quarterly results of 93 9 of the sector s total market cap in the index that have been declared as of Aug 18 the industry has outperformed rather remarkably
Total earnings for these companies have dipped 0 3 in spite of 2 9 higher revenues Despite the bleak year over year comparisons a whopping 82 beat earnings estimates while 74 1 exceeded top line expectations
In the computer networking space Cisco Systems Inc NASDAQ CSCO beat our estimates for both earnings and revenues in its fourth quarter Earnings of 58 cents exceeded the Zacks Consensus Estimate by 3 cents and revenues of 12 6 beat the consensus mark of 12 5 billion
Despite intensifying competition from several smaller players Cisco remains strong in its domain Cisco s strategy of diversifying its business by introducing software based networking tools and security services and relying less on specialized routers and switching equipment appears to be yielding results
Cisco is acquiring a cloud based security company CloudLock which is expected to enhance its current cloud security offerings The purchase will help the network equipment maker to expand its efforts and meet changing compliance and security needs
Besides Cisco some other stocks in the same space are also looking impressive right now
Keep an Eye on These 4 Performers
Netgear Inc NASDAQ NTGR designs technologically advanced branded networking products that address the specific needs of small businesses and individual users The company s suite of products enables users to share Internet access peripherals files digital multimedia content and applications among multiple personal computers and other Internet enabled devices
The Zacks Consensus Estimate for 2016 improved to 2 65 from 2 41 over the last 60 days The EPS growth estimate is 38 0 for the current year as against the industry average of negative 15 2 This Zacks Rank 1 Strong Buy stock has gained 13 1 in the last one month
Radcom Ltd NASDAQ RDCM designs manufactures markets and supports innovative high performance internetworking test and analysis equipment for data communications networks Its products are used in the development and manufacturing of network equipment installation of networks and the ongoing maintenance of operational networks
The Zacks Consensus Estimate for 2016 improved to 32 cents from 22 cents over the last 60 days The long term EPS growth estimate is 15 0 for the current year as against the industry average of negative 7 7 The company has gained 25 0 in the last one month It carries a Zacks Rank 1
Extreme Networks Inc NASDAQ EXTR is a leading provider of a next generation of switching solutions that meet the increasing needs of enterprise local area networks Internet service providers and content providers
The Zacks Consensus Estimate for the current year improved to 19 cents from 15 cents over the last 60 days The EPS growth estimate is 35 7 for the current year as against the industry average of negative 15 2 This Zacks Rank 2 Buy stock has gained 8 2 in the last one month
Silver Spring Networks Inc NYSE SSNI operates as a networking platform and solutions provider for smart energy networks It enables utilities to transform the power grid infrastructure into the smart grid
The Zacks Consensus Estimate for the current year improved to a loss of 45 cents per share from a loss of 47 cents over the last 60 days The EPS growth estimate is 19 6 for the current year as against the industry average of negative 15 2 This Zacks Rank 2 stock has gained 6 5 in the last one month
Looking Ahead
These stocks have managed to grab the spotlight with notable performances supported by decent earnings and impressive growth projections With this in mind we believe investing in these stocks will yield strong returns for your portfolio in the short term |
CSCO | Gold On A Leash Through These Dog Days | Has anyone noticed that gold through these Dog Days of August has been on a fairly tight leash almost as if reined in by the S P 500 such that both markets from one month ago to date have netted at best a mild 1 uprise the S P s lacking earnings otherwise
You know you re in these so called Dog Days when given the significant and far too oft horrific events which have befallen the globe this past year the lead StateSide story of late has something to do with swimmers mis escapades at the summer games down Rio way Not unusually the August air has become ripe with complacency Gold and the S P traipsing along together as if hand in hand on the summer s final happy walk along the creek and up to the waterfall before tis back to reality the city and the school bus Here are the two markets percentage tracks over the last 21 trading days one month for which Gold is 1 0 and the S P 0 7
To be sure our expect daily trading ranges EDTRs have been narrowing near nothing as we next see for both Gold and the S P from one year ago to date again these are not price tracks rather our expectations of prices day to day differences between their highs and lows A little summertime how low can you limbo goin on out there after the stormier yet Gold positive turbulence we endured across these markets back from mid June into early July
Course as goes the classic Neil Young piece from 77 You are like a hurricane there s calm in your eye And you know how Septembers tend to go Hey Egbert I just saw Mabel the cat fly past the window In fact three of the past five Septembers have been net down for the S P as have four of them been for Gold Still we ve a week and a half to mull over what may befall or befriend Gold next month with price presently 26 9 year to date at 1346 and having been up as much as 29 9 upon reaching our targeted year to date high at Base Camp 1377 on 06 July tis fair to say the year s trend is up what Moreover during the 10 year run from 2001 2010 Gold suffered but one net negative September a 4 6 loss in 2006 We look forward to further assessing the Then
As for the Now here we ve Gold s weekly bars their having run out of puff through these Dog Days with this third consecutive week having closed near its low which for you technician types out there is three hammers in a row Tis also the third straight week wherein the net change has been less than one percent Yes the sleeping dog may now lie low but in a month s time be back on the go tis the direction we wish to know the trend being that Gold ought grow
But mmb the economy s not lying low the July LEI was 0 4 which you said it wouldn t be huh
Well Squire you ve called me out on that one Indeed in last week s missive we stated that the Conference Board s July reading of their Leading Indicators oft called the LEI for leading economic indicators wouldn t grow by the 0 4 consensus expectation But it did Yet if we go inside the numbers via the Economic Barometer metrics related to July as below shown make up the purple portion of the Econ Baro s line With due respect to the Conference Board does that purple bit look like 0 4 growth to you
Ought we thus be concerned duh Take that 0 4 growth plus the stock market making a marginal new high as most days go by and the motto of the Alfred E Neuman Institute for Common Knowledge stands firm What me worry Brings to mind this graphic with which you veteran Gold Update readers are familiar
Still according to Reuters US inflation tame despite economy gaining momentum It is Rather we ask is the first economic domino in the course of being tipped A CNN piece this past week alerted us that Global Central Banks are Dumping American Debt At A Record Pace That s cute Course taking the other side of the trade is private demand in the chase to grab some safe yield whilst tis still positive barely the 10 year U S Treasury Note as of yesterday s Friday s settle is yielding 1 578 Want more They re those equity funds for emerging markets which reportedly just hit a 58 week high Nuthin like safety in numbers eh Sheesh
Irrespective of whether the first domino to fall is Debt or Deutsche Bank DE DBKGn or the Dollar the latter having lost ground in seven of the last 10 trading days due to a faltering economy thank you Bloomy there then would fall the second domino Might it be higher unemployment We read that Cisco Systems NASDAQ CSCO is to let go some 14 000 folks Or earnings becoming weaker still Amidst all the apparently robust housing news we find that home improvement and appliance supplier Lowe s is cutting its profit outlook indeed with Q2 Earnings Season now concluded for the 2 500 companies collected only 55 improved over 2015 s Q2 our live reading of the S P s price earnings ratio still at a staggeringly high 38 0x What about our foreign friends Stocks across the pond as measured by the STOXX 600 just put in their worst week in two months rents in London are actually falling some UK savers rates are being halved thank you Santander MC SAN and Brexit banking instability whilst further round the world Japan s Q2 gross domestic product disappointingly stalled poor ole able Abe
All that said thank goodness there s Gold Where would we end up without it The problem is of course most folks are without it As for Where is it we next turn to the following two panel display of Gold s daily bars for the past three months on the left and the 10 day Market Profile on the right The baby blue dots our day by day measure of 21 day linear regression trend consistency are making a somewhat daunting dip rather than returning back up above their 80 level again having now had three weeks in a row per the above weekly bars of Gold giving up its intra week gains lends to a negative technical bent at least near term And in the profile you can see the overhead trading resistors depicted at 1348 1352 and 1358
The panels are similar for Sister Silver her Baby Blues left having just abruptly blown below their 0 neutral level whilst in her profile right the 19 75 level appears as stark overhead resistance
So although Gold going forward is nothing but fundamentally fantastic the near term strictly technical read is mildly bearish The same can be said for Silver albeit as you know she has a hankerin of getting torn down away from Gold should Cousin Copper struggle in his industrial metal fettle
Now let s wrap this week s missive with a bit of Golden Glitter Apropos of having opened this piece with mention of Rio s Olympic Games we spent this past mid week up in Olympic Valley site of Squaw Valley s 1960 Winter Olympics And obviously in traveling from here San Francisco to there we traversed California s Gold Country wherein we were most highly privileged to have been afforded a private tour of a high security Gold stash deep in the foothills of the Sierra Nevada mountains Securitized by floor weighting sensors invisible beams atomic air particle measurements all surrounded by guards and four legged critters with whom you d rather not have to face as foe your accidentally breaking wind at either end in this place will set off alarms aplenty even in the Governor s bedroom many miles westward down in the valley Yet by their risking it all to give us a peek as a professional perk we were actually allowed to take the following photograph even upon our first warning them that thousands of readers would see it Behold Real Gold some 200 troy ounces within a frame not even one meter square And when you do the math don t forget to add in almost two centuries of collectible value as well
Fairly inspirational stuff that So if you re one of the 99 without it then get with it Unleash yourself and go buy some Gold |
XOM | ExxonMobil Shareholders Reject Climate Change Resolutions | U S oil giant ExxonMobil Corporation NYSE XOM has been relieved of the tremendous pressure to implement climate change policies after its shareholders narrowly voted the proposals down The policies which necessitated limiting greenhouse gas emissions reducing global warming putting a climate expert on the board reporting on fracking activities and even climate change impact assessments were rejected at ExxonMobil s annual meeting Notably just one out of the eleven climate related proposals was passed at the meeting Per the resolution directors have been instructed to adopt a proxy access rule that would make it easier for minority shareholders to propose board candidates and remove incumbent directors
This is expected to pave the way for the inclusion of a climate activist in the company s board However it must be noted that ExxonMobil s board had opposed the proposal on grounds that the policy exposed the influence of special interest groups in the company Notably this is first time in the company s history that the climate related proposals received so much support Initial results showed 38 support from ExxonMobil investors that cast ballots This is a sign that more conventional shareholders like pension funds sovereign wealth funds and asset managers are beginning to take the threat of a global warming from fossil fuels more seriously ExxonMobil had intended to avoid the vote on the proposals but the U S Securities and Exchange Commission rejected the plan Additionally the White House declared that it intended to put forward a new rule that requires companies with federal contracts to reveal whether they share information about the risks to their operations from changing climate conditions as well as their goals to cut greenhouse gas emissions The rule which is expected to be implemented by this fall would have a notable impact on most federal contracts However ExxonMobil remains unperturbed by this announcement In fact the company mentioned that it had published a report in 2014 on managing climate risks ExxonMobil added that the report had stated that none of the company s oil and gas holdings are challenged by a global push to reduce carbon emissions Church Commissioners for England and the New York State Common Retirement Fund along with others led the filing of the ExxonMobil resolution Notably ExxonMobil s shareholder meeting this year was pretty tensed as it came after the Paris accord on a curb in fossil fuel emissions and average global temperatures of less than 2 degrees Celsius above preindustrial levels Alongside New York s attorney general also examined accusations from environmentalists that ExxonMobil had misled the public about climate change risks Several shareholders used this to urge the company to show how such a goal will affect its business units ExxonMobil currently carries a Zacks Rank 3 Hold Some better ranked stocks in the oil and gas sector include CVR Refining LP NYSE CVRR Murphy USA Inc NYSE MUSA and Braskem S A NYSE BAK All these stocks sport a Zacks Rank 1 Strong Buy Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
XOM | The Zacks Analyst Blog Highlights ExxonMobil CVR Refining Murphy USA And Braskem | For Immediate Release
Chicago IL May 27 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 ExxonMobil NYSE XOM Corporation CVR Refining LP Murphy USA Inc and Braskem S A
Today Zacks is promoting its Buy stock recommendations
Here are highlights from Thursday s Analyst Blog
ExxonMobil Shareholders Reject Climate Change Resolutions
U S oil giant ExxonMobil Corporation has been relieved of the tremendous pressure to implement climate change policies after its shareholders narrowly voted the proposals down
The policies which necessitated limiting greenhouse gas emissions reducing global warming putting a climate expert on the board reporting on fracking activities and even climate change impact assessments were rejected at ExxonMobil s annual meeting
Notably just one out of the eleven climate related proposals was passed at the meeting Per the resolution directors have been instructed to adopt a proxy access rule that would make it easier for minority shareholders to propose board candidates and remove incumbent directors
This is expected to pave the way for the inclusion of a climate activist in the company s board However it must be noted that ExxonMobil s board had opposed the proposal on grounds that the policy exposed the influence of special interest groups in the company
Notably this is first time in the company s history that the climate related proposals received so much support Initial results showed 38 support from ExxonMobil investors that cast ballots This is a sign that more conventional shareholders like pension funds sovereign wealth funds and asset managers are beginning to take the threat of a global warming from fossil fuels more seriously
ExxonMobil had intended to avoid the vote on the proposals but the U S Securities and Exchange Commission rejected the plan
Additionally the White House declared that it intended to put forward a new rule that requires companies with federal contracts to reveal whether they share information about the risks to their operations from changing climate conditions as well as their goals to cut greenhouse gas emissions The rule which is expected to be implemented by this fall would have a notable impact on most federal contracts
However ExxonMobil remains unperturbed by this announcement In fact the company mentioned that it had published a report in 2014 on managing climate risks ExxonMobil added that the report had stated that none of the company s oil and gas holdings are challenged by a global push to reduce carbon emissions
Church Commissioners for England and the New York State Common Retirement Fund along with others led the filing of the ExxonMobil resolution
Notably ExxonMobil s shareholder meeting this year was pretty tensed as it came after the Paris accord on a curb in fossil fuel emissions and average global temperatures of less than 2 degrees Celsius above preindustrial levels Alongside New York s attorney general also examined accusations from environmentalists that ExxonMobil had misled the public about climate change risks Several shareholders used this to urge the company to show how such a goal will affect its business units
ExxonMobil currently carries a Zacks Rank 3 Hold Some better ranked stocks in the oil and gas sector include CVR Refining LP Murphy USA Inc and Braskem S A All these stocks sport a Zacks Rank 1 Strong Buy
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Today Zacks is promoting its Buy stock recommendations
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XOM | Suncor SU Resumes Alberta Operations Following Wildfire | Suncor Energy Inc NYSE SU announced that its operations which were halted due to the massive Canadian wildfire have resumed The leading integrated player in Canada has restored its activities at its base plant and the MacKay River sites in Alberta The initial production at the facilities will likely be started by this weekend Almost 4 000 employees and contractors of the company have returned to the areas In fact an additional 3 500 people may return to the region to shore up operations This announcement shows that the oil sands producers of Canada are gradually coming back to operations following the outage caused by the latest wildfire It is to be noted that construction work is rapidly underway at Fort Hills mine where full workforce will likely reach this week Moreover management said that the consortium of Syncrude oil sands mining has decided to restart operations although the timeline has not been given In Syncrude Suncor has a 53 74 stake while the world s largest publicly traded oil company Exxon Mobil Corporation NYSE XOM holds a 25 interest Calgary Alberta based Suncor is Canada s largest integrated energy company Suncor s operations include oil sands development and upgrading conventional and offshore crude oil and gas production petroleum refining and product marketing under the Petro Canada brand Presently Suncor 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 Some better ranked players in the energy sector include McDermott International Inc NYSE MDR and Murphy USA Inc NYSE MUSA Both stocks sport a Zacks Rank 1 Strong Buy |
XOM | Cobalt International Energy CIE Appoints New CEO | Cobalt International Energy Inc NYSE CIE announced the appointment of a new CEO with effect from Jul 2 2016 The new incumbent Timothy J Cutt has been appointed as both Chief Executive Officer CEO and a Class I member of the board of directors He was handed over the baton from the outgoing CEO Joseph H Bryant who has resigned with effect from Jun 1 2016 For the interim one month period prior to Timothy J Cutt assuming the mantle the company has made some temporary appointments During this time William P Utt the company s lead independent director has been appointed as Interim Chairman of the board of directors and Van P Whitfield the Executive Vice President and Chief Operating Officer has been appointed as Interim Chief Executive Officer In our opinion Cutt s appointment is a sound choice given his profound experience in the exploration space over the years Earlier he served as President Petroleum of BHP Billiton LON BLT Limited NYSE BHP and was accountable for its global oil and gas business from Jul 2013 to Mar 2016 Apart from that Cutt held positions in engineering operations and senior management for 25 years with energy majors like ExxonMobil Corporation NYSE XOM Headquartered in Houston TX Cobalt International Energy is an independent exploration and production company active in the deepwater U S Gulf of Mexico and offshore West Africa The company was formed in 2005 The company holds lease interests in over 230 deepwater blocks in the Inboard Lower Tertiary and Miocene plays To date the company has drilled seven exploratory wells three appraisal wells and four development wells in the northern pre salt Kwanza Basin offshore Angola and one exploratory well in the pre salt deepwater region offshore Gabon Of these wells 13 have been successful in finding pre salt hydrocarbons Cobalt International currently carries a Zacks Rank 3 Hold Investors interested in the space can focus on a Zacks Rank 1 Strong Buy stock like CVR Refining LP NYSE CVRR |
PCG | California gas pipeline explosion fire injure up to 15 people | By Sharon Bernstein
SACRAMENTO Calif Reuters A construction crew on Friday accidentally ruptured a natural gas transmission line in Fresno California sparking an explosion and fire that injured up to 15 people four of them critically officials said
The 12 inch 30 cm pipeline belonging to Pacific Gas Electric Corp N PCG was struck by a backhoe near state Highway 99 unleashing a fireball that injured members of the construction team and a jail inmate crew nearby Fresno Fire Department spokesman Peter Martinez said
The accident forced closure of the highway in both directions along with an adjacent railroad line Martinez said Rail traffic was halted to check for possible damage to a railway bridge over a river he said
One worker in critical condition was flown to hospital by helicopter and 13 or 14 others were taken to hospitals for evaluation and treatment of injuries after the pipeline was ruptured at about 2 30 p m Martinez added
Four of the injured were taken to Community Regional Medical Center in Fresno and two more were taken to the burn unit there said hospital spokeswoman Mary Lisa Russell adding that four were in critical condition and two serious
The utility had shut off the gas flow by 3 20 p m with the residual amount in the pipeline burning off just before 4 p m said PG E spokesman Donald Cutler
A county public works equipment operator struck the natural gas line said The Fresno Bee citing Fresno County Administrative Officer John Navarrette
The employee who was badly burned was the patient airlifted to Community Regional Medical Center the paper said citing Navarrette Inmates on a work detail were among the injured it added citing Sheriff Margaret Mims
The accident occurred at a shooting range used by law enforcement the Fresno County Sheriff s Department told the newspaper Fresno is about 190 miles 300 km southeast of San Francisco
The California Public Utilities Commission sent a team to Fresno to investigate the explosion spokeswoman Terrie Prosper said
The CPUC will conduct a full investigation of the explosion and has already coordinated with the federal Pipeline and Hazardous Materials Safety Administration Prosper said
A PG E representative said the utility was also investigating |
PCG | PG E names Williams as new President and CEO Earley to be Executive Chair | PG E NYSE PCG names Geisha Williams as its new President and CEO with current Chairman CEO and President Tony Earley becoming Executive Chair effective March 1 Williams is currently president of the company s Pacific Gas and Electric utility subsidiary which provides energy to millions of Californians and recently played a key role in handling the planned shutdown of the Diablo Canyon nuclear plant she joined the company in 2007 and was named Executive VP of Electric Operations in 2011Earley has led PG E for five years after serving as Chairman and CEO of DTE Energy during 1998 2010 and President and COO of Long Island Lighting |
PCG | PG E Corp PCG Beats On Q1 Earnings Keeps FY17 View | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the first quarter Zacks Consensus Estimate for earnings of 83 cents per share has increased by 3 8 in the last 30 days Coming to the earnings surprise history PG E Corporation has missed the Zacks Consensus Estimate in two out of the last four quarters resulting in a negative average surprise of 8 34 Zacks Rank Currently PG E Corporation has a Zacks Rank 3 Hold but that could change following its first quarter 2017 earnings report which has just released You can see We have mentioned below some of the vital information from this just revealed announcement Earnings PG E Corporation s earnings were above our earnings estimates Adjusted earnings per share came in at 1 06 beating the Zacks Consensus Estimate of 83 cents per share by 27 7 Pacific Gas Electric Co Price and EPS Surprise Revenue The company s revenues of 4 268 million for the first quarter surpassed the consensus estimate of 4 148 5 million Key Stats The company reaffirmed its adjusted EPS for 2017 in the range of 3 55 3 75 per share Stock Price In the pre market trading session PG E Corporation s first quarter results made no significant impact on its share price Yet it would be interesting to see how the market reacts to the earnings release during the trading session today Check back later for our full write up on this PCG earnings report later Sell These Stocks Now Just released today s 220 Zacks Rank 5 Strong Sells demand urgent attention If any are lurking in your portfolio or Watch List they should be removed immediately These are sinister companies because many appear to be sound investments However from 1988 through 2016 stocks from our Strong Sell list have actually performed 6X worse than the S P 500 |
PCG | Should You Sell Pacific Gas Electric PCG Before Earnings | Investors are always looking for stocks that are poised to beat at earnings season and Pacific Gas Electric Co NYSE PCG may be one such company The firm has earnings coming up pretty soon and events are shaping up quite nicely for their report That is because Pacific Gas Electric is seeing favorable earnings estimate revision activity as of late which is generally a precursor to an earnings beat After all analysts raising estimates right before earnings with the most up to date information possible is a pretty good indicator of some favorable trends underneath the surface for PCG in this report In fact the Most Accurate Estimate for the current quarter is currently at 83 cents per share for PCG compared to a broader Zacks Consensus Estimate of 79 cents per share This suggests that analysts have very recently bumped up their estimates for PCG giving the stock a Zacks Earnings ESP of 5 06 heading into earnings season Pacific Gas Electric Co Price and EPS Surprise Why is this Important A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises and outperforming the market Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank 3 Hold or better show a positive surprise nearly 70 of the time and have returned over 28 on average in annual returns see more Given that PCG has a Zacks Rank 3 and an ESP in positive territory investors might want to consider this stock ahead of earnings You can see Clearly recent earnings estimate revisions suggest that good things are ahead for Pacific Gas Electric and that a beat might be in the cards for the upcoming report The Hottest Tech Mega Trend of AllLast year it generated 8 billion in global revenues By 2020 it s predicted to blast through the roof to 47 billion Famed investor Mark Cuban says it will produce the world s first trillionaires but that should still leave plenty of money for regular investors who make the right trades early |
PCG | PG E Corp PCG Beats Q2 Earnings Misses Sales Estimates | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the second quarter Zacks Consensus Estimate for earnings of 79 cents per share has increased by a penny in the last 7 days Coming to the earnings surprise history PG E Corporation has missed the Zacks Consensus Estimate in two out of the last four quarters resulting in a negative average surprise of 3 38 Zacks Rank Currently PG E Corporation has a Zacks Rank 3 Hold but that could change following its second quarter 2017 earnings report which has just released You can see We have mentioned below some of the vital information from this just revealed announcement Earnings PG E Corporation s earnings were above our earnings estimates Adjusted earnings per share came in at 86 cents beating the Zacks Consensus Estimate of 79 cents per share by 8 9 Pacific Gas Electric Co Price and EPS Surprise Revenue The company s revenues of 4 250 million for the second quarter missed the consensus estimate of 4 319 8 million Key Stats The company has reaffirmed its adjusted EPS for 2017 in the range of 3 55 3 75 per share Stock Price In the pre market trading session PG E Corporation s second quarter results made no significant impact on its share price Yet it would be interesting to see how the market reacts to the earnings release during the trading session today Check back later for our full write up on this PCG earnings report later More Stock News Tech Opportunity Worth 386 Billion in 2017 From driverless cars to artificial intelligence we ve seen an unsurpassed growth of high tech products in recent months Yesterday s science fiction is becoming today s reality Despite all the innovation there is a single component no tech company can survive without Demand for this critical device will reach 387 billion this year alone and it s likely to grow even faster in the future Zacks has released a brand new Special Report to help you take advantage of this exciting investment opportunity Most importantly it reveals 4 stocks with massive profit potential |
XOM | U S stocks flat as NASDAQ extends weekly winning streak to seven | Investing com U S stocks retreated on Friday from record highs on Friday in quiet trade as a bevy of dismal economic data increased the prospects for a delayed interest rate hike from the Federal Reserve weighing on beaten down bank stocks
The Dow Jones Industrial Average fell 37 05 or 0 20 to 18 576 47 while the S P Composite index lost 1 74 or 0 08 to 2 184 05 both bouncing off session lows at the close of trading The NASDAQ Composite index meanwhile edged up 4 50 or 0 09 to 5 232 90 ending the session at a record closing high for the second straight day Driven by a determined rally among tech stocks the NASDAQ closed higher for a seventh consecutive week its longest streak of sustained weekly gains since 2012 Both the Dow and the S P 500 also closed slightly higher on the week
On the S P 500 six of 10 sectors closed in the red as stocks in the Basic Materials Industrials and Telecom industries lagged each falling by more than 0 3 Stocks in the Energy and Consumer Services sectors led It came one day after all three major indices ended Thursday s session at all time record closing highs an occurrence which last transpired in December 1999
On Friday morning the U S Bureau of the Census said retail sales were unchanged in July on a monthly basis falling sharply below expectations for a 0 4 gain At the same time producer prices also moved lower on the month while the University of Michigan said consumer sentiment has been flat for the first two weeks of August amid considerable declines in the Current Conditions component
With participants on the Federal Open Market Committee FOMC largely split on the timing of its next interest rate hike Friday s data could appease dovish arguments for holding rates steady for the remainder of the year As a result the KBE SPDR S P Bank ETF inched down on Friday extending considerable losses over the last month Since late July the bank sector exchange traded fund has fallen 5 due primarily to a flattening yield curve and modest loan growth
The top performer on the Dow was Exxon Mobil Corporation NYSE XOM which rose 1 13 or 1 30 to 87 85 Both ExxonMobil and Chevron Corporation NYSE CVX received a boost on Friday after U S crude futures gained 2 for the day to remain near three week highs In Friday s session energy traders continued to cover short positions one day after Saudi Arabia s energy minister said the kingdom could be open to discussing ways to stabilize persistently low oil prices at a conference in Algeria next month The worst performer was EI du Pont de Nemours and Company NYSE DD which fell 1 33 or 1 94 to 67 66
The biggest gainer on the NASDAQ was Jd Com Inc Adr NASDAQ JD which added 1 36 or 5 84 to 24 65 The Chinese e Commerce site finished just ahead of NVDA which rose by 3 34 or 5 59 to 63 03 After soaring more than 130 over the last six months Nvidia hit all time highs on Friday Shares in the Silicon Valley tech company have surged in recent months as semiconductors continue to rally from a dry spell at the start of the year The worst performer was Henry Schein Inc NASDAQ HSIC which fell 2 00 or 1 19 to 165 46
On the New York Stock Exchange declining issues outnumbered advancing ones by a 1 527 1 413 margin |
XOM | Exxon Mobil defends handling of Torrance refinery outage | By Liz Hampton HOUSTON Reuters Exxon Mobil N XOM has defended its handling of an outage at its Los Angeles refinery following a blast in February 2015 after a prominent trading company told a state commission that the process had lacked transparency Speaking before a committee of the California Energy Commission on Tuesday Brad Lucas a West Coast trader for Vitol VITOLV UL said that lack of information about the restart of the refinery made it difficult to time cargo deliveries into the West Coast market Lucas said at the meeting that In my opinion there was a lack of transparency with what was going on with Torrance He said Exxon kept saying the Torrance refinery would come back online next month The explosion at Exxon Mobil s 149 500 barrel per day Torrance refinery which provides about 10 percent of California s gasoline supply knocked a gasoline producing unit offline for more than a year The higher prices created an incentive for traders to import fuel into California but only if they could gauge when prices might fall after a refinery restart ExxonMobil is committed to the highest standards of business conduct and rejects these allegations ExxonMobil said in an emailed statement on Thursday We have operated responsibly and in strict compliance with all laws Vitol said in a statement on Friday there was a lack of clarity regarding the restart date for the refinery but added that it had never suggested the lack of clarity was the responsibility of ExxonMobil nor that ExxonMobil mislead stet the market The meeting by the Commission s Petroleum Market Advisory Committee was to discuss gasoline price volatility and policy alternatives to mitigate price spikes PBF Energy N PBF acquired the Torrance facility from Exxon on July 1 California Attorney General Kamala Harris issued subpoenas to refiners in the state in May as part of a probe into whether they manipulated gasoline prices since 2014 In July 2015 refinery outages and tightened supplies pushed Los Angeles wholesale CARBOB gasoline prices to record levels of more than a 1 30 a gallon premium to the U S RBOB futures contract RBc1
Kinder Morgan NYSE KMI which operates pipelines and terminals also spoke at the hearing |
XOM | SeaDrill s West Hercules Rig Receives Termination Notice | Hamilton Bermuda based offshore drilling firm SeaDrill Limited NYSE SDRL confirmed that the contract for its semi submersible drilling rig West Hercules to Norwegian oil major Statoil OL STL ASA NYSE STO has been terminated ahead of schedule Notably Statoil had initially entered into a contract with North Atlantic Drilling Ltd NYSE NADL SeaDrill s majority owned subsidiary to charter West Hercules for drilling in Norway
Per the terms of the contract SeaDrill will receive a hefty compensation of approximately 61 million from Statoil The company will also get dayrate and reimbursement of costs associated with disbandment of the rig from the latter
Despite the current improvement in crude prices the commodity has been trading at substantially low levels for a considerable length of time Given the lackluster pricing scenario upstream companies are increasingly reducing investments in exploration and production operations as they are not been able to sell the commodities at attractive prices So they are hiring fewer rigs for drilling activities in turn leading to early drillship contract termination Hence SeaDrill like its peers is witnessing early termination of its drilling contracts
Recently Seadrill Partners LLC s NYSE SDLP a wholly owned subsidiary of the company received a notice of termination for West Capella drillship contract from Exxon Mobil Corp NYSE XOM The company is likely to be compensated with almost 125 million along with other direct costs for the premature termination of the drillship contract
London based SeaDrill has one of the youngest drilling fleets among all the offshore drilling contractors The company s technologically advanced drillships are capable of operating in challenging environments The company has a fleet of 879 units 121 drillships 185 semi submersible rigs 536 jack up rigs and 37 tender rigs Seadrill however continues to suffer from high debt levels a number of obligations for new vessels and a shrinking backlog of contracted business
The company is expected to release first quarter 2016 results on May 26 It beat the Zacks Consensus Estimate in the last quarter as well as the last four quarters with a positive average surprise is 8 97
SeaDrill currently carries a Zacks Rank 3 Hold which implies that the stock will perform in line with the broader U S equity market over the next one to three months |
XOM | ExxonMobil Anticipates Higher Production From Cepu Block | ExxonMobil Corporation NYSE XOM expects output at Cepu block in Indonesia to increase to 200 000 barrels per day bpd from the current production level of 185 000 bpd However the increase in production is subject to approval by the government as well as environmental impact assessment ExxonMobil faced several obstacles and challenges while developing Cepu which included a worker dispute that reduced output last August Cepu is Indonesia s biggest oil and gas find in the last 10 years Therefore yield from the Banyu Urip project in the Cepu block in East Java province is pivotal for Indonesia s long term efforts This includes meeting the growing domestic oil demand as production declines at other ageing fields In 2015 crude production from Cepu more than tripled from 2014 and touched 130 000 bpd in December At the same time ExxonMobil commenced operations at the project s central processing facility ExxonMobil operates the Banyu Urip project in partnership with Indonesian energy company Pertamina Per Indonesia s upstream oil and gas regulator SKKMigas the government needs to assess the potential production increase from the Cepu block since it would involve an increase in expenses In the first quarter of 2016 Indonesia s average daily crude output jumped to 835 000 bpd from an average daily output of 785 000 bpd in 2015 The upside was mainly attributable to increased output from Banyu Urip ExxonMobil is the world s best run integrated oil company given its track record of high return on capital employed The company s strength lies in its balanced operations strong financial flexibility and continuous efficiency and cost control Currently ExxonMobil carries a Zacks Rank 3 Hold Some better ranked stocks in the oil and gas sector include CVR Refining LP NYSE CVRR Murphy USA Inc NYSE MUSA and Braskem S A NYSE BAK All these stocks sport a Zacks Rank 1 Strong Buy Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
PCG | PG E Corporation PCG Lags Q3 Earnings Revenue Estimates | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks PG E CORP Price and EPS Surprise Estimate Trend Surprise HistoryInvestors should note that the third quarter Zacks Consensus Estimate for earnings of 1 10 per share has decreased by 11 3 in the last 30 days Coming to the earnings surprise PG E Corporation has missed the Zacks Consensus Estimate in two out of the last four quarters resulting in a negative average surprise of 4 87 Zacks Rank Currently PG E Corporationhas a Zacks Rank 3 Hold but that could change following its third quarter 2016 earnings report which has just released You can see We have mentioned below some of the vital information from this just revealed announcement Earnings PG E Corporation s earnings were lower than the earnings estimates Adjusted earnings per share came in at 94 cents lagging the Zacks Consensus Estimate of 1 10 per share by 14 5 Revenue Revenues of 4 810 million missed the Zacks Consensus Estimate of 4 954 million by 1 1 Stock Price It would be interesting to see how the market reacts to the earnings release during the trading session today Check back later for our full write up on this PCG earnings report later Confidential from ZacksBeyond this Tale of the Tape 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 | U S stocks remain flat ending July in near record territory | Investing com U S stocks remained stuck in a tight range bound trade on Friday continuing a trend of sideways trading that has persisted over the last two weeks as the major indices ended July in near record territory
The Dow Jones Industrial average fell 24 11 or 0 13 to 18 432 24 suffering its fifth consecutive losing session The Dow was dragged down by Exxon Mobil Corporation NYSE XOM which fell more than 1 on the day after reporting its worst quarterly profits in 17 years For an eight day period earlier in the month the Dow hit all time and record closing highs on every session during the streak as jittery investors in the euro area sought safety in U S equities Overall the Dow surged approximately 3 on the month
The NASDAQ Composite index gained 7 15 or 0 14 to 5 162 13 on Friday closing at a 52 week high The NASDAQ has received a boost in recent days from stellar earnings among leading large cap stocks such as Alphabet Inc NASDAQ GOOGL Amazon com Inc NASDAQ AMZN and Facebook Inc NASDAQ FB In the last month stocks in the technology sector have jumped nearly 8 The S P 500 Composite index meanwhile added 3 54 or 0 16 to 2 173 60 ending the session at a record closing high
On the S P 500 seven of 10 sectors closed in the green as stocks in the Telecom Consumer Goods and Utilities industries led Stocks in the Industrials Financials and Consumer Services sectors lagged each closing lower for the session On the month every sector on the S P 500 closed higher with the exception of the Energy industry
The top performer on the Dow was Procter Gamble Company NYSE PG which gained 0 70 or 0 83 to 85 51 Shares in the consumer products giant are up roughly 6 over the last 52 weeks Exxon finished as the worst performer in the wake of its anemic second quarter plunging 1 70 or 1 88 to 88 50 Earlier ExxonMobil reported earnings of 1 7 billion or 0 41 per share missing earnings forecasts by a wide margin For the quarter Exxon s net profits tumbled 59 on an annual basis due to the low cost of oil and declining capital expenditures Investors continue to express significant concerns with Exxon s short term prospects after oil prices fell 13 in July erasing all of their gains from the previous three months
The biggest gainer on the NASDAQ was Regeneron Pharmaceuticals Inc NASDAQ REGN which added 14 08 or 3 43 to 425 12 During the week shares in the pharmaceutical manufacturer jumped 8 amid strong valuation and growth prospects in its Eylea treatment for Macular Degeneration as well as its PCSK9 inhibitor Praluent The worst performer was Stericycle Inc NASDAQ SRCL which plunged 15 66 or 14 78 to 90 27 Earlier the medical waste company opted to lower its forward guidance market citing strong foreign exchange headwinds and mounting competition in the industry
On the New York Stock Exchange advancing issues outnumbered declining ones by a 1 871 1 117 margin |
CSCO | Cisco Might Not Survive Another Crisis | Market crashes and economic crises come and go and the markets eventually recover The dot com bubble burst some 16 years ago but NASDAQ is currently trading at all time highs The Great Recession of 2007 2009 left the financial world in ruins but the Dow Jones Industrial Average is now flying above 18 550 And while the broad market survives some companies unfortunately do not Enron WorldCom and Lehman Brothers just to name a few Cisco Systems Inc NASDAQ CSCO on the other hand is one of the companies which could brag about surviving through the last two major stock market crashes The next chart however suggests it is no time for bragging
The weekly chart of Cisco Systems Inc NASDAQ CSCO shares shows the stock still has not managed to recover from the Dot com crash in 2000 2002 Currently trading slightly above 31 dollars a share it is not even close to the pre crash levels But what is even more worrying is the fact that the entire price development since the top in March 2000 looks like an almost complete 5 3 wave cycle A five wave from 82 00 all the way down to 8 12 in October 2002 followed by a three wave W X Y correction whose wave Y is still in progress According to the impulses show the direction of the larger trend As soon as the following correction is over the trend resumes in the direction of the five wave sequence
In Cisco s case this means that once wave Y end another significant sell off is likely Correction usually develop between the parallel lines of a corrective channel We believe Cisco stock would probably reach the upper line of the above shown channel around 40 dollars a share Despite the extreme optimism this new multi year high would arouse in investors owning Cisco shares could turn into a costly mistake because once the downtrend resumes prices below 8 dollars a share should not be surprising When such low levels are reached a company s very existence is under threat Only time will tell if Cisco is going to survive through the next market meltdown but it definitely does not look like your best long term investment right now |
CSCO | All Cap Growth Style 3Q16 Best And Worst | The All Cap Growth style ranks sixth out of the twelve fund styles as detailed in our report Last quarter the All Cap Growth style ranked eighth It gets our Neutral rating which is based on an aggregation of ratings of 15 ETFs and 569 mutual funds in the All Cap Growth style as of July 28 2016 See a recap of our
Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the style Not all All Cap Growth style ETFs and mutual funds are created the same The number of holdings varies widely from 13 to 2171 This variation creates drastically different investment implications and therefore ratings
Investors seeking exposure to the All Cap Growth style should buy one of the Attractive or better rated ETFs or mutual funds from Figures 1 and 2
Figure 1 ETFs with the Best and Worst Ratings Top 5
Best ETFs exclude ETFs with TNAs less than 100 million for inadequate liquidity
Four ETFs are excluded from Figure 1 because their total net assets TNA are below 100 million and do not meet our liquidity minimums See our for more details
Figure 2 Mutual Funds with the Best and Worst Ratings Top 5
Best mutual funds exclude funds with TNAs less than 100 million for inadequate liquidity
Catalyst Lyons Hedged Premium Return Fund CLPFX is excluded from Figure 2 because its total net assets TNA are below 100 million and do not meet our liquidity minimums
iShares Core Russell US Growth ETF NYSE IUSG is the top rated All Cap Growth ETF and Eaton Vance Atlanta Capital Select Equity Fund ESEIX is the top rated All Cap Growth mutual fund IUSG earns an Attractive rating and ESEIX earns a Very Attractive rating
Global X Guru Index ETF NYSE GURU is the worst rated All Cap Growth ETF and Federated Kaufmann Fund KAUAX is the worst rated All Cap Growth mutual fund GURU earns a Neutral rating and KAUAX earns a Very Dangerous rating
Cisco Systems NASDAQ CSCO 31 share is one of our favorite stocks held by DPUYX and earns a Very Attractive rating Cisco is on list Over the past decade CSCO has grown after tax profit NOPAT by 7 compounded annually to 9 1 billion in 2015 NOPAT has grown to 10 1 billion over the last twelve months TTM The company s return on invested capital ROIC has improved from 14 in 2005 to a top quintile 17 TTM as well
Despite the improving fundamentals CSCO remains undervalued At its current price of 31 share CSCO has a price to economic book value PEBV ratio of 0 9 This ratio means that the market expects Cisco s NOPAT to permanently decline by 10 from current levels If Cisco can grow NOPAT by just 4 compounded annually over the next decade the stock is worth 38 share today a 23 upside
Crown Castle International NYSE CCI 97 share is one of our least favorite stocks held by GURU and earns a Very Dangerous rating CCI s economic earnings have declined from 23 million in 2012 to 465 million over the last twelve months Worse yet 2012 was the only year CCI earned positive economic earnings in any year of our model which dates back to 1998 Over the past five years CCI has failed to improve its ROIC and currently earns a bottom quintile 4 over the last twelve months
Despite the clear deterioration of business fundamentals CCI remains priced for significant profit growth To justify its current price of 97 share CCI must Given the shareholder value destruction through CCI s history this expectation seems overly optimistic
Figures 3 and 4 show the rating landscape of all All Cap Growth ETFs and mutual funds
Figure 3 Separating the Best ETFs from the Worst Funds
Figure 4 Separating the Best Mutual Funds from the Worst Funds
Disclosure David Trainer and Kyle Guske II receive no compensation to write about any specific stock style or theme |
CSCO | Cisco Systems CSCO Beats Earnings Down Slightly On Job Cuts | Cisco Systems NASDAQ CSCO just released its Q4 FY2016 earnings results posting earnings of 0 58 per share and revenue of 12 6 billion
Currently Cisco has a Zacks Rank 3 Hold but it is subject to change following the release of the company s latest earnings report Here are 5 key facts from this just announced report below
Cisco
1 Beat earnings estimates The company posted earnings of 0 58 per share Excluding 0 02 from non recurring items beating our Zacks Consensus Estimate of 0 55
2 Beat revenue estimates The company saw revenue figures of 12 6 billion beating our estimate of 12 55 billion
3 We had another strong quarter wrapping up a great year I am particularly pleased with our performance in priority areas including security data center switching collaboration services as well as our overall performance with revenues up 2 in Q4 excluding the SP Video CPE business said Chuck Robbins CEO of Cisco We continue to execute well in a challenging macro environment
4 Cisco plans to eliminate up to 5 500 positions or 7 percent from its overall workforce in a restructuring effort meant to optimize our cost base in lower growth areas of our portfolio and further invest in key priority areas such as security IoT Internet of Things collaboration next generation data center and cloud The company will begin to take action on this plan in the coming quarter
5 CSCO was down 0 25 or 0 81 to 30 49 as of 4 25 p m EDT in after hours trading shortly after its earnings report was released
Here s a graph that looks at Cisco s latest earnings performance CISCO SYSTEMS Price and EPS Surprise Cisco Systems Inc designs manufactures and sells Internet Protocol IP based networking and other products related to the communications and information technology industry worldwide The company serves businesses of various sizes public institutions governments and communications service providers Cisco Systems Inc sells its products directly as well as through channel partners such as systems integrators service providers other resellers and distributors The company was founded in 1984 and is headquartered in San Jose California
Check back later for our full analysis on Cisco s latest quarterly earnings report
If you want information on how to trade during earnings season check out the Zacks Market Edge Podcast below |
XOM | Oil Is Breaking Out | It seems that oil is busting out of its bust cycle as the crash in oil prices has put a market that was seriously oversupplied back into a semblance of balance The reason that we are seeing such a quick turnaround is an old story about how low prices cure low prices
Low prices have sparked a demand resurgence around the globe and we are seeing record demand in China and The United States China oil demand urged 1 7 percent in April hitting 10 62 million barrels per day bpd of oil in April a record daily consumption volume according to Reuters calculations Reuters also points out that India is seeing surging demand as well and pick up where China left off as the biggest oil demand driver
According to Reuters India s oil consumption has grown at an average annual rate of 5 percent over the last decade and climbed over 4 million barrels per day for the first time in the year ending in March 2016 India is currently the world s fourth largest oil consumer after the United States China and Japan and set to overtake Japan for the third slot within the next 12 18 months
Gas demand in the U S is also near record highs coming in at a whopping 9 480 million barrels a day last week Prices will rise at the pump as it appears that oil prices and global demand will compete for that U S gallon
In the meantime the crash in oil prices have created instability in oil producing nations like Venezuela and Nigeria that are almost totally dependent on the price of oil Nigeria s oil production has fallen by almost 40 percent to 1 4 million barrels a day due to militant attacks on facilities in the Delta region its oil minister said on Monday according to Reuters
Venezuela s socialist revolution has finally hit what was an inevitable collapse Even as the nation cut a deal with China to get some cash in an oil for loans deal the odds that Venezuela may default on its debt remains high
We are seeing falling production in China Bloomberg News reports that China s domestic oil production slumped to the lowest in 14 months and coal output declined by the most in at least a year The world s second largest oil consumer reduced crude output in April by 5 6 percent from a year ago to 16 59 million metric tons the lowest since February 2015 according to data from the National Bureau of Statistics The biggest decline since November 2011 pushed daily average output down to 4 05 million barrel
The oil sands fires in Canada are still costing the market over 1 0 million barrels of oil per day
The lack of investment geo political happenings and wild fires are beginning to take its toll on global oil production and the market is starting to price market balance and the trend of tightening supply or shortages in the future
The Financial Times reported that most of the world s largest oil companies have cut research spending sharply since 2013 as they strive to save money in the face of the slump in crude prices raising concerns about their ability to compete in a changing energy landscape The FT said that BP LON BP made the biggest cuts reporting a 41 per cent drop in its research and development spending for 2013 15 in part because of its decision to stop work on advanced cellulosic ethanol The FT said that other large western oil groups have mostly made cuts of 15 20 per cent company reports show with the exceptions of ExxonMobil NYSE XOM of the U S and ENI NYSE E of Italy which have cut by just 3 and 2 percent respectively R D cuts will slow the introduction of new technologies and reduce future oil and gas production Remember it was R D that helped bring about the shale revolution and it allowed to keep production up when rigs started to fall
I have been talking for some time that the price crash in oil would have consequences I have talked about the comparisons to the price crash in 1998 1999 You are seeing those consequences start to be reflected in price We are at a generational low as the damage done to the oil industry will not be fixed overnight We are soon on a path to a supply deficit that could last longer than many think We continue to recommend playing it for the long term |
XOM | iFOREX Daily Analysis May 20 2016 | The dollar edged higher against the other major currencies on Thursday trimmed a bit his gains after the release of disappointing U S data but never the less remained at seven week highs as fresh expectations for a June rate hike by the Federal Reserve continued to support
The U S Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 14 decreased by 16 000 to 278 000 from the previous week s total of 294 000 while analysts expected jobless claims to fall by 19 000 to 275 000 last week Separately the Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to 1 8 this month from April s reading of 1 6 while analysts had expected the index to improve to 3 5 in May But the dollar remained supported after the Fed s April meeting minutes showed that officials said a June rate hike would be appropriate if economic data indicated that growth was picking up in the second quarter and employment and inflation were firming
Elsewhere the pound strengthened after the U K Office for National Statistics said retail sales rose 1 3 in April well above economists forecasts for an increase of 0 5 while the Aussie dropped to two month lows after the Australian Bureau of Statistics reported that the number of employed people increased by 10 800 in April confounding expectations for a 12 500 rise and the unemployment rate remained unchanged at 5 7 in April compared to expectations for an uptick to 5 8
Today Tokyo is to host the G7 meeting Canada is to release data on retail sales and consumer prices while the U S is to round up the week with industry data on existing home sales
EUR USD
The euro fell slightly on Thursday sliding below 1 12 for the first time in more than a month as foreign exchange traders parsed the minutes from recent meetings by the Federal Reserve and the European Central Bank for signals of further divergence between the top two central banks in the world
The currency pair traded in a broad range between 1 118 and 1 1230 before settling down 0 14 on the session Today investors will focus on U S industry data on existing home sales for further information on the strength of the American economy
Pivot 1 1255
Support 1 1175 1 114 1 112
Resistance 1 1255 1 129 1 1325
Scenario 1 short positions below 1 1255 with targets 1 1175 1 1140 in extension
Scenario 2 above 1 1255 look for further upside with 1 1290 1 1325 as targets
Comment as long as the resistance at 1 1255 is not surpassed the risk of the break below 1 1175 remains high
Gold
Gold crashed to three week lows on Thursday morning before paring some of the losses late in the session as market players continued to price in the improved chances of multiple rate increases from the Federal Reserve this year following hawkish comments from the U S central bank on the likelihood of a June rate hike
The precious metal wavered between 1 244 50 and 1 262 25 an ounce before settling down 21 15 or 1 66 Gold extended declines from the previous session when it plunged 15 an ounce after the FOMC said in the minutes from its April meeting that it will likely raise short term rates at its next meeting in June if the economy continues to improve as expected Today investors will focus on U S industry data on existing home sales for further information on the strength of the greenback
Pivot 1261 5
Support 1244 1237 3 1231
Resistance 1261 5 1269 1276
Scenario 1 short positions below 1261 50 with targets 1244 00 1237 30 in extension
Scenario 2 above 1261 50 look for further upside with 1269 00 1276 00 as targets
Comment the upward potential is likely to be limited by the resistance at 1261 50
WTI Oil
Crude prices fell slightly below 48 a barrel on Thursday pressured by a stronger dollar and a surprise increase in U S crude inventories which served as a reminder that supplies are plentiful despite output problems
Supply losses in Canada and Nigeria have supported the market But cooler weather is expected to help firefighters battling Canadian wildfires and traders said Exxon Mobil NYSE XOM is boosting output at Nigeria s largest crude stream
Despite recent losses oil prices have been well supported in recent weeks due to a combination of Nigerian Libyan and Venezuelan supply outages declining U S shale output and reduced production of Canadian crude as a result of fires in Alberta s oil sands region
Today energy traders will focus on Baker Hughes weekly data on the U S oil rig count
Pivot 47 52
Support 47 52 46 72 46 2
Resistance 48 97 49 58 50 15
Scenario 1 long positions above 47 52 with targets 48 97 49 58 in extension
Scenario 2 below 47 52 look for further downside with 46 72 46 20 as targets
Comment the RSI broke above a declining trend line
US 500
U S stocks fell sharply on Thursday as investors digested hawkish indications from the Federal Reserve that it will likely raise interest rates next month if the domestic economy continues to demonstrate signs of improvement
The Dow lost 0 52 while the S P 500 Composite index fell 0 37 and the NASDAQ Composite index dipped 0 56 amid a weak session among pharmaceutical stocks
While the major indices came off session lows with a late rally stocks on Wall Street still closed broadly lower With one session left in the week the Dow and S P 500 are both on pace for their fourth consecutive weekly decline On the S P 500 six of 10 sectors closed in the red as stocks in the Financials Industrials and Health Care industries lagged Stocks in the Basic Materials and the Utilities sector led each gaining more than 0 4
Today investors will focus on U S industry data on existing home sales for further information on the strength of the American economy
Pivot 2034
Support 2034 2006 1970
Resistance 2085 2100 2130
Scenario 1 long positions above 2034 00 with targets 2085 00 2100 00 in extension
Scenario 2 below 2034 00 look for further downside with 2006 00 1970 00 as targets
Comment the RSI lacks downward momentum Thanks to a hammer candlestick the head and shoulders pattern is still not confirmed |
XOM | Oil s Rout Takes Its Toll | Dominoes Are Falling
Reverberations from the oil price crash continue as more bankruptcies and increased geopolitical tensions are causing a seismic shift in the long term outlook for energy production With mounting pressure on oil producing countries leading to civil unrest and more bankruptcies of highly leveraged oil companies the bottom of the commodity cycle is well underway The dominoes are falling and prices are rising
The market rebound yesterday was caused in part by reports that Exxon Mobil s NYSE XOM terminal in Nigeria was blocked by intruders but the risk to supply goes far beyond Nigeria Reuters says that militant activity has cut Nigeria s oil exports to a more than 22 year low of under 1 4 million bpd
The crash in oil prices has crashed the Venezuelan economy and despite boosts Venezuela s state oil company PDVSA said its oil production was unchanged in the first quarter OPEC has reported it fell to 2 53 million barrels of oil down almost 200 000 barrels a day from the same period a year ago Obviously if the country turmoil continues there is a real risk that number will fall further
Bloomberg News reported that crude oil output in Iraq OPEC s second largest producer has probably peaked and is likely to fall short of the country s target over the next two years according to an official with Lukoil PJSC operator of one of the country s biggest fields The reason is because Iraq needs more investment to maintain production at current levels and let s face it the investment dollars are not there after the oil price crash and lost production due to the war with ISIS
Even in Saudi Arabia oil crash money problems are taking its toll Another report by Bloomberg News said that they are considering using IOUs to pay outstanding bills with contractors and conserve cash according to people briefed on the discussions As payment from the state contractors would receive bond like instruments which they could hold until maturity or sell on to banks the people said asking not to be identified because the information is private Bloomberg says that companies have received some payments in cash and the rest could come in the I owe you notes the people said adding that no decisions have been made on the measures
If you are looking for shale production to ramp up and save the day think again Unprecedented pain in the shale patch will make it almost impossible to make a meaningful comeback Big shale names like Sand Ridge Energy Linn Energy NASDAQ LINE Penn Energy have all filed for Chapter 11 bankruptcy this week along with Breitburn Energy Partners Layoffs and the lack of capital will not allow the companies to invest and ramp up production when the lawyers and judges are going to be making most of the decisions On top of that companies that are filing Chapter 11 are not adding many oil and gas rigs Already the rig count is again at the lowest level since Baker Hughes started counting rigs in 1949 and maybe at the lowest back to around 1860 or 1900 if only rotary drilling rigs are counted We should see another drop in rigs today when Baker Hughes releases data at 12 central time today Even oil majors are dumping assets cutting spending and are seeing their proven reserves fall along with their credit ratings
As for Natural Gas Despite storage levels being high we think that the market has already priced in peak pessimism and prices will only rise going forward According to EBW Analytics President Andy Weissman In the event we have an ultra mild summer and we don t see much likelihood of that but you can t rule it out and if in fact we have a winter next winter that is just as mild as the last winter and we don t see much likelihood of that happening prices will be relatively close to the present forward curve We see the current prices for natural gas as being almost a worst case scenario That doesn t mean that prices will immediately go straight up and over the next two to three weeks I think we will see further declines But we view that as very temporary and a direct product of the fact we are in the middle of the shoulder season when demand for natural gas is at its low point for the year
The crash in energy and the drop in investment is the largest in history That means of course that overtime the rebound in oil prices will be the largest in history As I have written before we are seeing the seed of the next super spike in oil being planted We have seen this story played out in oil historically time and time again This is the time if history is any judge to prepare for the shortages that we will see in the coming years |
PCG | PG E Corporation Hits 52 Week High On Growth Momentum | PG E Corporation NYSE PCG scaled a new 52 week high of 60 32 during yesterday s trading session before closing a tad lower at 60 31 This San Francisco CA based company engages in the generation procurement and distribution of electricity and natural gas The stock has delivered a one year return of about 16 3 Over the past 52 weeks PG E Corp s shares have ranged from a low of 47 33 on Sep 2 2015 to a high of 60 32 on Jun 1 2016 The average volume of shares traded over the last three months is approximately 2 4 million What is Driving the Stock PG E Corp s shares have been on the rise ever since the company declared impressive results for the first quarter of 2016 on May 4 Quarterly earnings of 82 cents per share in the quarter outpaced the Zacks Consensus Estimate of 76 cents by 7 9 In fact the company has beaten earnings estimates in three out of the last four quarters with a positive average surprise of 7 12 It continues to expects 2016 adjusted earnings from operations in the range of 3 65 3 85 per share Further PG E Corp s total revenue of 3 974 million in the first quarter beat the Zacks Consensus Estimate of 3 859 million by 3 Revenues also increased 1 9 from 3 899 million in the year ago period The upside can be attributed to higher electric revenues during the quarter PG E Corp continues to make systematic investments in gas related projects and electric system safety and reliability For 2016 the company expects an outlay of approximately 5 6 billion Moreover it anticipates annual capital expenditure of 5 4 6 5 billion over the 2017 2019 period These projects will enable the company to provide reliable services to its customers Also consistent and steady growth in customer count should bolster the company s top line In the first quarter PG E Corp s total number of electric customers increased by 36 011 to over 5 3 million On the other hand the company added 22 592 customers at its natural gas business during the same period Zacks Rank Key Picks Currently PG E carries a Zacks Rank 3 Hold Some better ranked stocks in the same space are Avangrid Inc NYSE AGR Spark Energy Inc NASDAQ SPKE and Black Hills Corporation NYSE BKH While both Avangrid and Spark Energy sport a Zacks Rank 1 Strong Buy Black Hills Corporation holds a Zacks Rank 2 Buy |
PCG | PG E Corporation PCG Misses Earnings Estimates In Q2 | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the second quarter Zacks Consensus Estimate for earnings of 94 cents per share has decreased by 15 3 in the last 90 days Coming to the earnings surprise PG E Corporation has surpassed the Zacks Consensus Estimate in three out of the last four quarters resulting in a positive average surprise of 7 12 Zacks Rank Currently PG E Corporation as a Zacks Rank 2 Buy but that could change following second quarter 2016 earnings report which has just released We have highlighted some of the key details from the just released announcement below Earnings PG E Corporation s earnings were lower than the earnings estimates Adjusted earnings per share came in at 66 cents lagging the Zacks Consensus Estimate of 94 cents by 29 8 Revenue Revenues of 4 169 million missed the Zacks Consensus Estimate of 4 217 million by 1 1 Stock Price It would be interesting to see how the market reacts to the lower than expected earnings during the trading session today Check back later for our full write up on this PCG earnings report later Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
XOM | Oil Search bows to ExxonMobil in battle for InterOil | MELBOURNE Reuters Australia s Oil Search Ltd has cleared the way for ExxonMobil NYSE XOM Corp to take over InterOil Corp for 2 2 billion giving the U S giant access to a rich new gas field to expand its exports from Papua New Guinea The move could lead ExxonMobil and French giant Total SA PA TOTF to tie together their competing gas interests in the South Pacific nation cooperating to reduce costs as they battle cheap oil and liquefied natural gas LNG prices Oil Search backed by Total had also bid for InterOil but said on Thursday it would not raise its offer The two companies agreed that letting ExxonMobil take over InterOil which owns a 36 5 percent stake in the Elk Antelope gas field would help speed up development of the discovery it said The majors are targeting Papua New Guinea for growth as the quality of its gas low costs and proximity to Asia s big liquefied natural gas LNG consumers make it one of the most attractive places to develop projects following a collapse in oil and gas prices Total had envisioned building a new 10 billion LNG project but said it was now committed to working with ExxonMobil s PNG LNG which could use Elk Antelope gas to feed an expansion This scenario would be the lowest cost viable supply in the Pacific Basin said Saul Kavonic an analyst at consultants Wood Mackenzie Oil Search a partner in both PNG LNG plant and Papua LNG estimates that around 2 billion could be saved by tying the two projects together For Oil Search shareholders the successful takeover of InterOil by ExxonMobil will deliver a major part of our original objectives in the acquisition of InterOil and our agreement with Total SA without shareholder dilution and any acquisition risk Oil Search Managing Director Peter Botten said in a statement Total operator of the Elk Antelope fields said late on Wednesday it was committed to cooperating with the PNG LNG project to maximize the value of the gas It s going to come down to how you carve up that value pie Those are the negotiations that will have to take place in order for that joint development to occur said Kavonic Oil Search and Total highlighted a recent certification of the gas field s reserves at less than 6 5 trillion cubic feet compared to InterOil s dream of 10 tcf as a factor in their analysis of the best development option for Elk Antelope ExxonMobil declined to comment ExxonMobil has offered 45 worth of its shares plus 7 07 per share for each trillion cubic feet equivalent tcfe above 6 2 tcfe up to a maximum of 10 tcfe for each InterOil share InterOil last traded at 48 95 |
XOM | NYMEX crude edges slightly weaker in Asia U S rig count data eyed | Investing com Crude oil prices traded in a narrow range in Asia on Friday as investors looked ahead to U S rig count data from Baker Hughes to cap the week s supply picture
On the New York Mercantile Exchange WTI crude for September delivery moved narrowly weaker at 44 74 a barrel down 0 02
Overnight global oil futures fell sharply on Thursday erasing gains from the previous session as persistent concerns related to the supply glut in crude and refined product remained in focus
On the Intercontinental Exchange ICE Brent crude for September delivery wavered between 46 13 and 47 56 a barrel before settling at 46 15 down 1 03 or 2 18 on the day With the losses crude futures retreated back to near two month lows
Crude prices fell considerably as investors continued to digest to data from the U S and China from Wednesday s session In June China s exports of refined fuels surged 38 to a record high of 4 2 million tons 1 02 million bpd the nation s Customs Administration said in a monthly report On an annual basis Chinese refined exports are up by 45 from the same level at this time last year The unexpected surge in refined exports exacerbated analysts concerns on weakening demand in China the world s second largest consumer of oil behind the U S
In the U S gasoline stockpiles rose by 911 000 last week to 241 million as refinery runs continued to outpace demand during the key summer driving season It came as the four week average of Crude Oil Input to Refineries rose to 16 697 million bpd for the week ending on July 15 up sharply by 88 000 bpd from the previous week Distillate fuel production meanwhile remains high one week after inventories surged by more than 4 0 million barrels posting their largest weekly increase in more than five months
The gasoline production numbers in the U S are just astounding analysts from Energy Analytics wrote in a note to investors
Overall U S commercial crude inventories fell by 2 342 million barrels on the week in line with consensus estimates for a 2 1 million draw While U S crude inventories remain near historically high levels for this time of the year stockpiles nationwide have declined in nine straight week
Elsewhere Exxon Mobil Corporation NYSE NYSE XOM announced plans to acquire InterOil Corporation NYSE IOC for 2 5 billion in a deal that enables the oil giant to expand its imprint throughout Southeast Asia With the merger ExxonMobil will gain access to InterOil s Liquefied Natural Gas LNG business in Papa New Guinea including a 36 5 stake in the Elk Antleope field
This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea said Rex W Tillerson chairman and chief executive officer of Exxon Mobil Corporation InterOil s resources will enhance ExxonMobil s already successful business in Papua New Guinea and bolster the company s strong position in liquefied natural gas |
XOM | NYMEX Brent gain slightly in Asia ahead of U S rig count data | Investing com Crude oil prices rebounded mildly on Friday in Asia as investors looked ahead to U S rig count data from Baker Hughes to cap the week s supply picture
On the New York Mercantile Exchange WTI crude for September delivery rose 0 11 to 44 80 a barrel On the Intercontinental Exchange ICE Brent crude for September delivery gained 0 30 to 46 34 a barrel
Overnight global oil futures fell sharply on Thursday erasing gains from the previous session as persistent concerns related to the supply glut in crude and refined product remained in focus
Crude prices fell considerably as investors continued to digest to data from the U S and China from Wednesday s session In June China s exports of refined fuels surged 38 to a record high of 4 2 million tons 1 02 million bpd the nation s Customs Administration said in a monthly report On an annual basis Chinese refined exports are up by 45 from the same level at this time last year The unexpected surge in refined exports exacerbated analysts concerns on weakening demand in China the world s second largest consumer of oil behind the U S
In the U S gasoline stockpiles rose by 911 000 last week to 241 million as refinery runs continued to outpace demand during the key summer driving season It came as the four week average of Crude Oil Input to Refineries rose to 16 697 million bpd for the week ending on July 15 up sharply by 88 000 bpd from the previous week Distillate fuel production meanwhile remains high one week after inventories surged by more than 4 0 million barrels posting their largest weekly increase in more than five months
The gasoline production numbers in the U S are just astounding analysts from Energy Analytics wrote in a note to investors
Overall U S commercial crude inventories fell by 2 342 million barrels on the week in line with consensus estimates for a 2 1 million draw While U S crude inventories remain near historically high levels for this time of the year stockpiles nationwide have declined in nine straight week
Elsewhere Exxon Mobil Corporation NYSE NYSE XOM announced plans to acquire InterOil Corporation NYSE IOC for 2 5 billion in a deal that enables the oil giant to expand its imprint throughout Southeast Asia With the merger ExxonMobil will gain access to InterOil s Liquefied Natural Gas LNG business in Papa New Guinea including a 36 5 stake in the Elk Antleope field
This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea said Rex W Tillerson chairman and chief executive officer of Exxon Mobil Corporation InterOil s resources will enhance ExxonMobil s already successful business in Papua New Guinea and bolster the company s strong position in liquefied natural gas |
XOM | Papua New Guinea PM survives no confidence vote but strikes remain | By Matt Siegel SYDNEY Reuters Papua New Guinea Prime Minister Peter O Neill survived a no confidence vote on Friday EMTV reported an outcome unlikely to end upheaval in a country developing lucrative projects with energy majors ExxonMobil NYSE XOM Corp and French giant Total SA PA TOTF The Supreme Court last week ordered parliament to reconvene for the first time since June protests between students and police boiled over into violent clashes for the express purpose of allowing the opposition to lodge a no confidence motion against O Neill Deputy Opposition Leader Sam Basil moved the motion at the opening of the session on Friday detailing numerous accusations of corruption against O Neill since he took office in 2010 To make the wrong decision here would be a mistake Basil told parliament Today it is up to us on the floor to make a change But Basil only secured 21 of the 56 lawmakers needed to oust O Neill leaving unclear how long a strike by aviation maritime and public transport workers that has effectively cut off the rugged mountainous nation would continue Australia s Oil Search Ltd on Thursday cleared the way for ExxonMobil to take over InterOil Corp for 2 2 billion giving the U S giant access to a rich new gas field to expand its exports from Papua New Guinea The move could lead ExxonMobil and Total to tie together their competing gas interests in the South Pacific nation cooperating to reduce costs as they battle cheap oil and liquefied natural gas LNG prices However despite the growing resource wealth corruption and violence are endemic in the island nation of seven million people raising concern about its long term stability and the ability to deliver a higher quality of life to its citizens Martyn Namorong head of the PNG Resource Governance Coalition urged protesters to respect the decision in order to avoid a further descent into chaos and violence I m a little bit deflated personally but I respect the decision of parliament he told Reuters Papua New Guineans have suffered a lot more than the politicians and we should not create more suffering for ourselves Student protest leader Noel Anjo urged Australia which has said little about the crisis to speak out They should come out and say something because this country the leadership is not right he said Under O Neill the leadership has gone from bad to worse Namorong argued that Australia s traditional role as the indispensable nation in the Asia Pacific region was eroding
I think the Australian influence in PNG has declined and that is reflected in how indifferent Australia is to what happens in Papua New Guinea he said |
XOM | Exxon Mobil profit misses expectations stock slides | HOUSTON Reuters Exxon Mobil Corp NYSE XOM the world s largest publicly traded oil producer posted a lower than expected quarterly profit on Friday due to weak crude prices and refining income reflecting the broad malaise in the energy sector
Net income slumped to 1 7 billion or 41 cents per share in the second quarter from 4 19 billion or 1 per share in the year ago period
Analysts though expected earnings of 64 cents per share according to Thomson Reuters I B E S
The earnings miss surprised Wall Street and Exxon shares fell 2 5 percent to 87 96 in premarket trading The company is normally known for hitting earnings targets and the miss was its first since the second quarter of last year
Production during the quarter fell about 0 6 percent to 3 9 million barrels of oil equivalent per day boe d
While Exxon slashed its capital budget by 38 percent during the quarter to 5 16 billion cost cuts were not enough to offset depressed oil prices which have dragged down huge swaths of the commodities sector
Exxon s profit from producing oil and gas fell about 85 percent to 294 million In the United States where Exxon is the largest natural gas producer and a major oil producer the company lost money
In the refining unit which has been hammered by growing fuel inventories and weak demand Exxon s profit fell more than 60 percent due to shrinking margins In previous quarters in this downturn before fuel inventories swelled the refining unit had helped insulate Exxon from falling crude prices Rex Tillerson Exxon s chief executive officer said the overall results reflected the volatile industry environment but defended the company s integrated business model where oil production and refining are under the same umbrella Earlier this month Exxon said it would pay more than 2 5 billion in stock for InterOil Corp expanding its push into the Asian liquefied natural gas market |
XOM | U S crude ends 4 day skid amid weaker dollar but ends July down 13 | Investing com Crude futures inched up on Friday after hitting a 40 handle for the first time since April ending the month sharply lower one day after entering a bear market due to renewed concerns of global oversupply
On the New York Mercantile Exchange WTI crude for September delivery traded between 40 58 and 41 66 a barrel before closing at 41 52 up 0 38 or 0 92 on the session Despite halting a four day losing streak WTI crude still ended July down roughly 13 on the month On the Intercontinental Exchange ICE brent crude for October delivery wavered between 42 52 and 43 60 a barrel before settling at 43 47 up 0 24 or 0 56 on the day
Oil futures bounced off three month lows on Friday as the U S Dollar fell sharply amid weak GDP data and a soaring Yen It came after the Bank of Japan rattled markets by approving only modest easing measures at a highly anticipated meeting in Tokyo Heading into the monetary policy meeting the BOJ was widely expected to cut interest rates and expand Quantitative Easing in an effort to boost persistently sluggish inflation The BOJ also ignored calls from the Japanese government to use all the tools necessary to lower the Yen in order to jumpstart soft exports As a result the Dollar plunged more than 2 5 against the Yen to an intraday low of 102 12 its lowest level in nearly three weeks
The U S Dollar Index which measures the strength of the greenback versus a basket of six other major currencies fell more than 1 on Friday to an intraday low of 95 67 The index is on pace for its fifth straight losing session after hitting four month highs at 97 62 on Monday Dollar denominated commodities such as Crude become more expensive for foreign purchasers when the dollar appreciates
Elsewhere oil services firm Baker Hughes said in its Weekly Rig Count report that U S oil rigs last week rose by three to 374 It marked the fifth consecutive week of weekly increases among oil rigs nationwide At the same time the overall rig count ticked up by one to 463 as gas rigs fell by two to 89
Shares in Exxon Mobil Corporation NYSE XOM fell sharply after the multinational oil and gas giant badly missed analysts earnings forecasts last quarter On Friday ExxonMobil reported earnings of 1 7 billion or 0 41 per share its worst quarterly profit since 1999 For the quarter net profits tumbled 59 on an annual basis due to the low cost of oil
Crude prices have come under pressure in recent weeks as oil companies in Canada Nigeria and Libya continue to return online Over the spring a wave of production disruptions in the aforementioned countries cushioned oil from further losses after a comprehensive Doha agreement in April abruptly collapsed Despite reports from the International Energy Agency IEA that the imbalance in the global supply demand could be on the verge of leveling off data released this week has shown otherwise On Wednesday the U S Department of Energy reported an unexpected inventory build of 1 7 million barrels last week pushing stockpiles to 521 1 million barrels near record highs for this time of the year U S production meanwhile moved higher for a third consecutive week
Crude futures have been enmeshed in a two year downturn since OPEC roiled markets in November 2014 by maintaining its production ceiling above 30 million barrels per day The strategic decision triggered a prolonged battle for market share between the U S and producers in the Middle East saturating global markets with a glut of oversupply Since peaking at 115 a barrel two years ago oil prices have tumbled by more than 60 |
CSCO | Five9 FIVN Q2 Earnings Preview What Awaits The Stock | Five9 Inc NASDAQ FIVN is set to report second quarter 2016 results on Aug 3 Last quarter the company posted a loss of 10 cents per share which was narrower than the Zacks Consensus Estimate of a loss of 11 cents Moreover the company has outperformed the Zacks Consensus Estimate in all of the four trailing quarters with an average positive surprise of 27 54 Let s see how things are shaping up for this announcement Factors at PlayFive9 offers a virtual contact center cloud platform that acts as a hub for interaction between clients and customers This facilitates contact center operations focused on inbound or outbound customer interactions within a single unified architecture The company offers software products such as workforce management speech recognition predictive dialer and voice applications The cloud based contact center solution industry has been witnessing growth over the past several quarters as organizations are looking for ways to minimize costs and improve customer support We believe that Five9 has been capitalizing on this opportunity which should be reflected in its to be reported quarter Furthermore the company s sustained focus on expanding its product portfolio will aid its top line performance However intensifying competition from small and large players like Cisco Systems NASDAQ CSCO is likely to dent Five9 s second quarter performance FIVE9 INC Price and EPS Surprise Earnings WhispersOur proven model does not conclusively show that Five9 is likely to beat the Zacks Consensus Estimate in the upcoming release This is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen Unfortunately that is not the case here as elaborated below Zacks ESP The Earnings ESP for Five9 is 0 00 This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 11 cents Zacks Rank Though Five9 s Zacks Rank 3 increases the predictive power of ESP the company s 0 00 ESP makes surprise prediction difficult Note that we caution against stocks with Zacks Rank 4 or 5 Sell rated stocks going into the earnings announcement especially when the company is seeing a negative estimate revisions momentum Stocks to ConsiderHere are a couple of stocks which you may consider as our model shows that they have the right combination of elements to post an earnings beat this quarter Qualys Inc NASDAQ QLYS with an Earnings ESP of 12 50 and a Zacks Rank 3 Paycom Software Inc NYSE PAYC with an Earnings ESP of 7 69 and a Zacks Rank 3 |
XOM | Is Exxon Mobil XOM Stock A Solid Choice Right Now | One stock that might be an intriguing choice for investors right now is Exxon Mobil Corporation NYSE XOM This is because this security in the Oil Gas International Integrated space is seeing solid earnings estimate revision activity and is in great company from a Zacks Industry Rank perspective This is important because often times a rising tide will lift all boats in an industry as there can be broad trends taking place in a segment that are boosting securities across the board This is arguably taking place in the Oil Gas International Integrated space as it currently has a Zacks Industry Rank of 50 out of more than 250 industries suggesting it is well positioned from this perspective especially when compared to other segments out there Meanwhile Exxon Mobil is actually looking pretty good on its own too The firm has seen solid earnings estimate revision activity over the past month suggesting analysts are becoming a bit more bullish on the firm s prospects in both the short and long term In fact over the past month current quarter estimates have risen from 48 cents per share to 54 cents per share while current year estimates have risen from 2 37 per share to 2 54 per share The company currently holds a Zacks Rank 3 Hold which is also a favorable signal So if you are looking for a decent pick in a strong industry consider Exxon Mobil Not only is its industry currently in the top third but it is seeing solid estimate revisions as of late suggesting it could be a very interesting choice for investors seeking a name in this great industry segment |
XOM | ExxonMobil XOM Resumes Operations At Torrance Refinery | ExxonMobil Corporation NYSE XOM recently resumed operations of the fluid catalytic cracker FCC at its refinery in Torrance CA On May 10 the FCC resumed operations after meeting the air monitoring test of California s regulatory agency South Coast Air Quality Management District SCAQMD Notably SCAQMD is the regulatory agency responsible for air pollution control for the entire Orange County as well as portions of Los Angeles Riverside and San Bernardino counties Based on the monitoring test ExxonMobil would implement certain operational measures to mitigate excess emissions To date the company has invested around 161 million to repair a damaged electrostatic precipitator and another 1 1 million in drift eliminator upgrades to the refinery s pretreater hydrotreater fuel gas treater and north and south coker cooling towers The refinery was crippled by an explosion in Feb 2015 wounding four contractors causing heavy damage at the plant and shocking nearby residents The Torrance Refinery of Exxon Mobil covers 750 acres and has approximately 650 employees and 550 contractors It processed an average of 155 000 barrels of crude oil per day and produced 1 8 billion gallons of gasoline per year The facility known for special low emissions gas produces about 10 of all gasoline sold in California Engaged in oil and natural gas exploration and production petroleum products refining and marketing chemicals manufacture and other energy related businesses ExxonMobil is the world s largest publicly traded oil company Approximately four fifth of ExxonMobil s earnings come from its operations outside the U S ExxonMobil is one of the world s best run integrated oil companies given its track record of superior returns on capital employed The energy giant has long been a core holding for investors seeking a defensive name with continued dividend growth The company is also fairly active in its investment programs The strength of ExxonMobil primarily lies in its balanced operations strong financial flexibility and steady improvement in efficiency and cost control The company s efforts to build an unconventional resource portfolio both in North America and overseas are aimed at increasing production through a wider exposure to large energy resources with a long reserve life and low field declines However we are skeptical about the company s near term performance owing to its muddled refining fortunes ExxonMobil currently carries a Zacks Rank 3 Hold Some better ranked stocks from the same space are PetroChina Co Ltd NYSE PTR Pembina Pipeline Corporation NYSE PBA and Braskem S A NYSE BAK Each of these stocks sports a Zacks Rank 1 Strong Buy |
XOM | Facebook Exxon Mobil Both Overvalued But For Different Reasons | Exxon Mobil NYSE XOM is trading as a Bond in this yield chasing QE inspired Central Bank World and Facebook NASDAQ FB is your classic momentum stock The first lesson of modern investing is that everything is a trade in financial markets Avoid being the bag holder in either of these two stocks The day of their demise is merely a calendar event on the investing time clock horizon
Below you find the video |
XOM | Exxon Mobil Cancels West Capella Drilling Rig Contract | Exxon Mobil Corporation NYSE XOM a leading integrated energy player has terminated a contract for Seadrill Partners LLC s NYSE SDLP West Capella drillship It is to be noted that West Capella is among the most rewarding drilling units of the offshore drilling player and was hired for working at Usan offshore field located in the Gulf of Guinea This drillship suspension news is quite normal in this unfavorable business environment Although presently there is upward momentum in crude prices the commodity has seen weak trading for a length of time Following the pricing scenario the upstream companies are not getting incentives for investing in exploration and production operations as they are not been able to sell the commodities at attractive prices So they are hiring fewer rigs for drilling activities which is leading to early drillship contract termination Transocean Ltd NYSE RIG the world s largest offshore drilling contractor has also faced several rig contract terminations like Seadrill Partners Investors should know that Seadrill Partners will get compensated with almost 125 million along with other direct costs for the premature drillship contract termination Exxon Mobil will pay 125 million in two equal installments The first one is expected by the second quarter of this year and the second is anticipated by the first quarter of next year During the idle time West Capella drillship will likely be in Tenerife but for the fresh contract the rig is being marketed presently 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 Seadrill Partners headquartered in London and was formed by SeaDrill Limited NYSE SDRL is an offshore drilling contractor Presently Exxon Mobil carries a Zacks Rank 3 Hold while Seadrill Partners has Zacks Rank 2 Buy |
PCG | PG E Corporation PCG Beats On Earnings Revenues | PG E Corporation NYSE PCG a diversified utility holding company engages in the business of electricity and natural gas distribution electricity generation procurement and transmission and natural gas procurement transportation and storage Stable financial position steady growth in customer counts a well set of utility assets and disciplined investments in infrastructure projects will likely boost PG E Corp s future performance In addition the company s practice of paying dividend is commendable However penalties levied for the San Bruno and Carmel incidents stringent environmental regulations and several operational risks remain potential setbacks Estimate Trend Surprise HistoryInvestors should note that the recent earnings estimate for PG E Corp has remained stable over the past 30 days The company currently has a Zacks Rank 3 Hold Coming to the earnings surprise PG E Corp has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 12 13 Going further things could definitely change given the company s recently released earnings results Going below we have mentioned some of the vital information from this just revealed announcement Earnings PG E Corp beat earnings estimates in the first quarter 2016 results Our consensus called for EPS of 76 cents and the company reported EPS of 82 cents Revenue The company also surpassed on revenues Our consensus called for revenues of 3 859 million and the company reported revenues of 3 974 millionCheck back later for our full write up on this PCG earnings report later Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
XOM | Wall St lower in early trade as investors seek safe haven assets | Investing com U S stocks were lower in early trade ending a four day rally The DJIA was down 0 6 at 10 15 ET while the S P 500 was off 0 8 The tech heavy Nasdaq composite dropped 1 The yield on the U S 10 year Treasury hit fresh lows as investors sought safe haven assets U S factory orders fell a seasonally adjusted 1 0 in May slightly more than forecast Exxon Mobil NYSE XOM was down 1 as oil futures fell sharply |
XOM | Cyclical stocks eyed to extend the U S market s rally | By Rodrigo Campos and Noel Randewich NEW YORK Reuters Wall Street s rally fed primarily by defensive stocks embraced by worried investors may be spreading to some of the growth companies that more typically lead a market forward The move remains incipient typical leaders like consumer discretionary companies technology and financials continue to lag the utilities and staples that propelled the S P 500 SPX to record highs this week But investors have started to turn to shares of smaller companies and those in some traditional growth areas such as consumer durables as worry about global economic weakness and U S corporate earnings has subsided a bit and as some of those typically high priced shares seem more affordable than the defensive names If it materializes the shift to growth would signal more confidence in the economy and more likelihood that the market could hold its highs and go higher Our favored sectors looking into the second half of 2016 are information technology healthcare and consumer discretionary three of the worst performing sectors year to date said Terry Sandven chief equity strategist at U S Bank Wealth Management Furthermore the last 10 sessions have seen the small cap Russell 2000 index RUT gain 11 percent while the S P has risen 8 percent as investors have also bought into the more volatile small company space Defensives have run their course Professionals are warning investors from buying those stocks for the yield That leaves cyclicals as the way to go for the market to keep rising said Kim Forrest senior equity research analyst at Fort Pitt Capital Group in Pittsburgh who said she has been buying technology shares and also looking at industrials GROWTH AT A BETTER PRICE The very fact that technology and financials have been weak suggests to some investors that U S stocks could keep rising this year They are more affordable than those of the market leading sectors and they have room to move higher especially if upcoming earnings reports meet or exceed expectations Information technology telecom services materials consumer discretionary and healthcare stocks now are selling at or below 17 times their expected earnings over the next 12 month according to Thomson Reuters data By comparison stocks in the S P consumer staples sector SPLRCS are trading at roughly 20 times their expected earnings over the next 12 months relatively pricey for a slow grow category The energy sector of the S P 500 SPNY typically expected to do well when the economy expands has outperformed over the last three months With a 14 percent return it is the only non defensive sector with double digit percentage gains so far in 2016 THE WALL OF WORRY Though it is a Wall Street axiom that stocks climb a wall of worry it is somewhat unusual to see defensive stocks like utilities and consumer staples propel markets to record highs That happened this year because investors worried about the fallout from Britain s vote to leave the European Union as well as several quarters of weak U S economic growth and corporate earnings flocked to dividend paying protective sectors But most recently with U S employment showing signs of improvement and analysts projecting that corporate earnings may have bottomed the shift to sectors that have missed out on the past year s market gains already appears to be under way Investors started July by adding money to exchange traded funds that track healthcare materials and consumer staples and consumer discretionary stocks all saw net inflows according to ETF com Energy still 30 percent below its 2014 record high may be poised for even more gains as oil prices stabilize after the sharpest decline in a generation ExxonMobil N XOM has added more to its market capitalization in 2016 than any other U S company Consumer discretionary companies projected to show 8 7 percent year over year growth in their second quarter earnings will be the shining star of the S P sectors with autos retail and service companies showing strength RBC Capital Markets Chief Equity Strategist Jonathan Golub said in a Tuesday note to investors
Any improvement in earnings and the economy could spur more investors to jump in and bet on growth said Paul Zemsky chief investment officer multi asset strategies and solutions at Voya Investment Management in New York After breaking a record you should expect folks will get in for the ride |
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