Tuesday, June 17, 2014

Top 5 Income Companies To Own In Right Now

The nation�� banks are ready to report first quarter earnings as JPMorgan Chase JPMorgan Chase and Wells Fargo Wells Fargo lead the way on Friday.

The story around big banks has been similar over the last several quarters as they all face revenue growth problems, loan demand struggles, expenses, legal troubles, regulatory and capital issues.

JPMorgan will report early Friday morning and many are expecting the New York bank to report a drop in earnings compared to last year. Analysts estimate JPM will report earnings per share of $1.41 compared to last year�� quarter when the bank reported $1.59 per share.

Investors might remember back in February, head of JPM�� corporate and investment bank, David Pinto told investors that capital markets revenue would likely be down 15% from last year.

JPM is just off a big year in 2013 after paying a record $13 billion in a settlement with the Department of Justice over its mortgage securities. Revenue for 2013 hit $96.6 billion, a slight drop from the prior year, while net income dropped 16% to $17.9 billion. It�� trying to recover from the big legal and regulatory hits it took last year. In the fourth quarter, JPM recorded an $800 million legal expense and investors are hoping to see that come down.

Top 5 Income Companies To Own In Right Now: Xcel Energy Inc.(XEL)

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electricity to residential, commercial, and industrial customers, as well as to public authorities in the United States. The company generates electricity using coal, nuclear, natural gas, hydro, wood, diesel, and wind energy. It also engages in the purchase, transportation, distribution, and sale of natural gas to residential, commercial, and industrial customers. The company serves customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. As of December 31, 2010, it provided electricity services to 3,391,611 customers; and natural gas services to 1,893,250 customers. Xcel Energy, through its joint venture interests in WYCO Development LLC, develops and leases natural gas pipeline, storage, and compression facilities. The company was founded in 1909 and is based in Minneapolis, Minnesota.

Advisors' Opinion:
  • [By David Dittman]

    Xcel Energy Inc�� (NYSE: XEL) coal-fired generation was 42.3 percent of its total 2013output. Xcel was down 0.2 percent.

    NRG Energy Inc�� (NYSE: NRG) 2013 coal-fired share of generation was 28.8 percent, but it�� been actively adding renewable sources. Its stock was up 2.2 percent. NextEra Energy Inc (NYSE: NEE), owner/operator of the largest fleet of renewable generation in the US with just 1.7 percent of its output from coal, was up 2.8 percent.

  • [By Sean Williams]

    Another risk factor that can often be overlooked is that electricity price increases aren't a guarantee. In fact, power price increase rulings are often determined by state regulatory energy commissions which have a duty to look out not for these companies, but also for the best interests of consumers. Last summer, for instance, Xcel Energy (NYSE: XEL  ) was denied a $100 million rate increase (about $2 each month per customer) by the Colorado Public Utilities Commission after failing to sufficiently demonstrate how not raising these rates would adversely impact the company.�

  • [By Rich Smith]

    Schadenfreude's in season
    Not everyone's opposed to the law, necessarily. For example, Xcel Energy (NYSE: XEL  ) is already working to expand its portfolio of wind-generated power in the state, and two years ago, it put into operation a 19-megawatt solar farm in cooperation with SunPower (NASDAQ: SPWR  ) . As a so-called "investor-owned utility," Xcel is already subject to a target of 30% renewables use by 2020 -- so a law making its rural rivals hit a 20% target probably didn't upset Xcel all that much.

Top 5 Income Companies To Own In Right Now: A. H. Belo Corp (AHC)

A. H. Belo Corp incorporated on October 1, 2007, is a newspaper publishing and local news and information company that owns and operates four metropolitan daily newspapers and several associated Web sites. The Company publishes The Dallas Morning News, The Providence Journal, The Press-Enterprise (Riverside, CA), and the Denton Record-Chronicle. It publishes various niche publications targeting specific audiences, and its investments and/or partnerships include Classified Ventures, LLC, owner of cars.com and the Yahoo! Inc. (Yahoo!) Newspaper Consortium. The Company also owns and operates commercial printing, distribution and direct mail service businesses. The Company�� primary sources of revenue include advertising sold in published issues of its newspapers and on the Company�� Web sites, the sale of newspapers to subscribers and single copy customers, and commercial printing and distribution. In July 2012, The Dallas Morning News acquired Pegasus News (www.pegasusnews.com) from PanLocal Media LLC, a subsidiary of Archstream LLC of Dallas.

The Company�� The Dallas Morning News is a metropolitan newspapers in America. The Dallas Morning News is distributed primarily in Dallas County and 10 surrounding counties. The Dallas Morning News also publishes Briefing, a condensed newspaper distributed four days per week at no charge to non-subscribers of The Dallas Morning News in select coverage areas, and Al Dia, a Spanish-language newspaper published on Wednesdays and Saturdays and distributed at no charge in select coverage areas. The Dallas Morning News also publishes other news products targeted at communities in the North Texas area. The Dallas Morning News��financial and operating results also include The Denton Record-Chronicle.

The Company�� The Providence Journal is a newspaper in Rhode Island and southeastern Massachusetts. The Providence Journal is a daily newspaper of general circulation and continuous publication in the United States. The Providence Journal a! lso publishes ProjoExpress, a weekly publication distributed at no charge to households in select Rhode Island communities. The Press-Enterprise is distributed in the Inland Southern California region, which includes Riverside and San Bernardino Counties. The Press-Enterprise also publishes La Prensa, a weekly Spanish-language newspaper distributed at no charge in select coverage areas, as well as The Weekly, a targeted condensed newspaper distributed mid-week at no charge to non-subscribers, and Sunday Weekly, a publication that is distributed on Sunday at no charge to non-subscribers.

In addition to its core newspaper operations, the Company and Belo Corp., through their subsidiaries, together own 6.6% of Classified Ventures, LLC, a joint venture, in which the other owners are Gannett Co., Inc., The McClatchy Company, Tribune Company, and The Washington Post Company. The three principal online businesses Classified Ventures, LLC operates are cars.com, apartments.com, and homegain.com. The Company and Belo, through Belo Lead Management LLC, have also invested in ResponseLogix, Inc. (www.responselogix.com). ResponseLogix provides advanced, Internet-based management solutions to auto dealers.

Advertising

The Company has a portfolio of print, online and digital advertising products and services. During the year ended December 31, 2011, advertising revenues accounted for approximately 61.2 % of total revenues of which 12.5 of advertising revenue was generated by the Company�� digital advertising products. Its Display advertising revenue consists of sales of advertising space within its newspapers and niche publications to local, regional or national retail and service businesses with local operations, affiliates or resellers. Its Classified advertising revenue comprises sales of advertising space in the classified and other sections of its newspapers, which include certain automotive, real estate, employment and other.

The Company�� Preprint revenue ! is earned! from sales of pre-printed advertisements or circulars inserted into its core newspapers and niche publications, or distributed by mail or third-party distributors to households in targeted areas in order to provide total market coverage for advertisers. Its Digital advertising revenue consists of sales of and other display, video, behavioral targeting, search, rich media, directories, classifieds, direct email marketing, or other advertising on digital platforms associated and integrated with the Company�� print publications, and on third party Web sites, such as Yahoo!, monster.com, and cars.com..

Circulation

Circulation revenues accounted for approximately 30.3 % of total revenues in 2011 and represent subscription and single copy sales revenue related primarily to the Company�� core newspapers. The Company�� Websites also include (dallasnews.com, providencejournal.com, pe.com and other related Websites) offering users news information, user-generated content, advertising, e-commerce and other services.

Printing and Distribution

Printing and distribution revenues comprised approximately 8.5 % of the Company�� revenue in 2011 and consists primarily of commercial printing, distribution and direct mail service. The Company provides commercial printing services, primarily for national newspapers, such as The Wall Street Journal, The New York Times and USA Today and other local newspapers. Newsprint used in the production of large national newspapers is generally provided by the customer. The Company also provides home delivery and retail outlet distribution services, for such national newspapers, as well as for regional newspapers delivered into its coverage areas, such as The Boston Globe and the Los Angeles Times. The Company also operates a direct mail service business in Phoenix, Arizona and Las Vegas, Nevada.

Advisors' Opinion:
  • [By Jon Friedman]

    Editor's note: A previous version of this article referred to A.H. Belo (NYSE: AHC) instead of Belo Corp. (NYSE: BLC). The Fool regrets the error.�

10 Best Performing Stocks To Watch For 2015: World Wrestling Entertainment Inc.(WWE)

World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business. The company develops content centered around its talent, and presents at its live and televised events featuring World Wrestling Entertainment. It operates through four segments: Live and Televised Entertainment, Consumer Products, Digital Media, and WWE Studios. The Live and Televised Entertainment segment conducts live events; produces television shows; sells merchandise at its live events; provides sponsorships, such as various promotional vehicles, including Internet and print advertising, arena signage, on-air announcements, and pay-per-view sponsorships for advertisers; offers television rights; and markets and promotes the storylines associated with pay-per-view events. It also provides WWE Classics On Demand, a subscription video on demand service that offers classic television shows, pay-per-view events, specials, and original programmi ng. This segment distributes its programming in approximately 30 languages and in approximately 145 countries. Its merchandise consists of various WWE-branded products, such as T-shirts, caps, and other novelty items. The Consumer Products segment licenses and sells retail products, including toys, video games, home videos, apparel, and books; and publishes magazines comprising lifestyle publications with native language editions in the UK, Mexico, Greece, and Turkey. The Digital Media segment operates Web sites; provides advertising services; sells merchandise on its Web site at WWEShop Internet storefront; and offers broadband and mobile content. The WWE Studios segment is involved in the distribution of entertainment films. This segment focuses on creating a mix of filmed entertainment. The company was founded in 1980 and is based in Stamford, Connecticut.

Advisors' Opinion:
  • [By Luke Jacobi]

    Shares of World Wrestling Entertainment (NYSE: WWE) were down 43.28 percent into the close to $11.31 following announcement of NBCUniversal deal on Thursday. Benchmark downgraded WWE from Buy to Hold.

  • [By Shauna O'Brien]

    World Wrestling Entertainment, Inc. (WWE) announced on Monday that it has updated its FY2013 outlook.

    The company now expects to see OIBDA between $40 million and $50 million. This new estimate is a result of recent developments that caused a 5% decline in second half revenue estimates.

    George Barrios, CFO of WWE commented: “Our revised 2013 Outlook reflects a relatively moderate change in our second half revenue expectations and our continued investment in the WWE brand and our content.”

    “Given the rising value of content in the market place, we believe these investments will maximize WWE�� future earnings as we renegotiate our four largest television distribution agreements and potentially launch a WWE Network,” Barrios added.

    World Wrestling Entertainment shares were down 13 cents, or 1.28%, during pre-market trading Monday. The stock is up 29% YTD.

  • [By DAILYFINANCE]

    Courtesy: WWE ORLANDO, Fla. -- Bodies crashing to the ground and being slung against the springy ropes of the ring. The slapping of skin as hulking men and women grapple and hurl blows at one another. The clink of free weights and the roar of broadcasters practicing to get it just right for the cameras. Welcome to World Wrestling Entertainment's (WWE) Performance Center, a $2.5 million, 26,000-square foot facility that opened last month, replacing a much smaller and antiquated facility in Tampa. It's both a graduate school of sorts for the WWE's next generation of talent and a training and rehabilitation center for its top-tier pro wrestlers, called "Superstars" and "Divas." "Most kids grow up and at least at some point in their lives want to be a fireman or a cop. I've always wanted to be a pro wrestler since I was a little kid," said 29-year-old Corey Graves, one of the 75 aspiring wrestlers based at the center. The largest part of the facility is a vast space featuring seven wrestling rings that makes the new Orlando facility the largest training facility WWE has ever built. Wrestler Xavier Woods, 26, said it's the kind of environment he always hoped to train in. "When I first started, the guy that was training us rented out the back of a storage unit, just a tight little space with bugs and everything. It was like the lowest-level thing you could do," Woods said. "So to be in a place like this ... it's literally unreal." Aspiring wrestlers currently in training range from former NFL players and Olympians to a former beauty pageant contestant. They signed contracts allowing them to work solely on becoming wrestlers. "One hundred percent, this is their jobs," said Jane Geddes, WWE senior vice president of talent and development. Courtesy: WWE Geddes said the WWE built the center envisioning a place where up-and-comers could train alongside established professionals. WWE is the major leagues of pro wrestling, with a half-billion dollars in annual reven

Top 5 Income Companies To Own In Right Now: Gentium SpA(GENT)

Gentium S.p.A., a biopharmaceutical company, focuses on the development and manufacture of its primary product candidate, defibrotide, an investigational drug based on a mixture of single-stranded and double-stranded DNA extracted from pig intestines. It develops defibrotide for the treatment and prevention of hepatic veno-occlusive disease (VOD), a condition that occurs when veins in the liver are blocked as a result of cancer treatments, such as chemotherapy or radiation, that are administered prior to stem cell transplantation. The company has completed a Phase III clinical trial of defibrotide for the treatment of severe VOD in the United States, Canada, and Israel; and a Phase II/III pediatric trial in Europe for the prevention of VOD. It also offers sulglicotide that is developed from swine duodenum, and has ulcer healing and gastrointestinal protective properties in South Korea; and urokinase, which is made from human urine to treat various vascular disorders, such as deep vein thrombosis and pulmonary embolisms. The company was formerly known as Pharma Research S.r.L. and changed its name to Gentium S.p.A. in July 2001. Gentium S.p.A. was founded in 1993 and is headquartered in Villa Guardia, Italy.

Advisors' Opinion:
  • [By James Oberweis]

    Gentium Spa (GENT) is focused on the development and commercialization of its leading product, defibrotide, to treat certain complications arising from chemotherapy, and bone marrow and stem cell transplantation therapy.

  • [By Jake L'Ecuyer]

    Shares of Jazz Pharmaceuticals Public Limited Company (NASDAQ: JAZZ) got a boost, shooting up 7.77 percent to $123.65 after the company announced its plans to buy Gentium SpA (NASDAQ: GENT) for around $1 billion.

  • [By Sean Williams]

    A parabolic problem
    It has also been a year to remember for shareholders of biopharmaceutical company Gentium (NASDAQ: GENT  ) whose share price has catapulted approximately 600% off its lows thanks to growth in its lead drug Defibrotide (known as Defitelio in the European Union).

Top 5 Income Companies To Own In Right Now: DCT Industrial Trust Inc (DCF)

DCT Industrial Trust Inc. (DCT) is an industrial real estate company that owns, operates and develops bulk distribution and light industrial properties in distribution markets in the United States and Mexico. The Company is structured as an umbrella partnership real estate investment trust (REIT), under which substantially all of its business is, and will be, conducted through a majority-owned and controlled subsidiary, DCT Industrial Operating Partnership LP (the operating partnership), a Delaware limited partnership, for which DCT Industrial Trust Inc. is the sole general partner. The Company owns properties through its operating partnership and its subsidiaries. As of December 31, 2011, DCT owned approximately 90% of the outstanding equity interests in its operating partnership. In March 2012, DCT acquired a 32.6 acre land parcel in Romeoville, within the southern I-55 industrial submarket of Chicago. In May 2012, the Company acquired two Class A industrial buildings totaling 98,000 square feet in Houston, known as DCT Claymoore Center. Located in the Northwest submarket of Houston, DCT Claymoore Center encompasses a bulk and light industrial facility and is 95.8%-occupied. In August 2013, the Company announced that it has acquired a three building portfolio totaling 308,000 square feet in the Tempe/Airport submarket of Phoenix. In September 2013, Dct Industrial Trust Inc announced the acquisition of 45 acres in the heart of the Inland Empire West submarket of Southern California. In October 2013, DCT Industrial Trust Inc acquired DCT Fox River Business Center, a six-building industrial portfolio in Elgin. In October 2013, DCT Industrial Trust Inc sold its entire portfolio of Mexico assets to an investment trust of Macquarie Mexican REIT.

During the year ended December 31, 2011, the Company acquired 24 buildings comprising 2.8 million square feet and controlling ownership interests in three buildings totaling 0.4 million square feet. In 2011, the Company sold 16 operating properties to! taling approximately 2.7 million square feet to third-parties. As of December 31, 2011, the Company�� consolidated operating properties had leases with approximately 900 customers with no single customer accounting for more than 1.7% of the total annualized base rents of its properties. As of December 31, 2011, the Company owned interests in, managed or had under development approximately 75.5 million square feet of properties leased to approximately 900 customers, including 58.1 million square feet comprising 408 consolidated properties owned in its operating portfolio, which were 90.6% occupied; 0.2 million square feet comprising one consolidated property under redevelopment, and 17.2 million square feet comprising 52 unconsolidated properties, which were 86.3% occupied and one managed-only property operated on behalf of five institutional capital management partners. As of December 31, 2011, its total consolidated portfolio consisted of 409 properties with an average size of 142,000 square feet and an average age of 20.2 years.

Advisors' Opinion:
  • [By Robert Rapier]

    The partnership has generated $7.6 billion of distributable cash flow (DCF) over the past nine years, paying out just short of three quarters of that total and reinvesting the rest. The long-term distribution coverage checks in at a prudent 134%.

  • [By David Kerr]

    Let�� take a look at using a version of the Discounted Cash Flow method (DCF) to valuate the share price. I will use the most recent Earnings Per Share of 2.32, an 18.9% growth rate over the next 10 years (which is the average EPS growth rate of the past 10 years), a Terminal Growth Rate of 2% (average inflation rate for 2013 so far), with 10 years of Terminal Growth at a Discount Rate of 12% to be safe. That leaves us with a Fair Value of $58.85 and a 42% Margin of Safety. That�� a healthy margin.

  • [By Canadian Value]

    As many of our clients know, Jensen focuses primarily on the discounted cash flow (DCF) method to value equities. Our long held belief is that the intrinsic value of a business is the present value of the cash flows the company is expected to pay its shareholders in the future. The remainder of this paper explores some of the advantages and disadvantages of using either DCF or multiples and outlines why we believe DCF is the more fundamentally sound way to value equities.

No comments:

Post a Comment