/* Article Data (Server Side) article (o): [object Object] WSODIssue (s): |242162|2983193 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): 2 Deepwater Drilling Stocks for Income Investors Seeking Dividends Link (s): http://folionation.squarespace.com/news/2014/5/16/2-deepwater-drilling-stocks-for-income-investors-seeking-div.html Thumbnail (s): DocumentDate_raw (n): 1400269200000 DocumentDate (s): May 16, 2014 DocumentDate_smart (s): May 16, 2014 DocumentKey (s): 1107-290734296785734819101-6UE134VLC7T1FA26N7QKHQ24E3 ContentType (s): Article TrackingPixel (s): Content (s):

Income investors looking for dividends should check out these deepwater drilling stocks. 

After trading sharply lower for the last few months, deepwater drillers are starting to come back. Transocean Ltd. (RIG) kicked off a renaissance in the sector when the company reported respectable quarterly results. Given stocks in this sector pay a healthy dividend yield, it is worthwhile for income investors to look at Transocean again.

Transocean beats expectations

Transocean lowered its costs during the first quarter. Fleet utilization was much higher than the market expected. Revenue efficiency soared to 95.7 percent, which is the highest Transocean achieved since early 2008. In the Ultra deep water segment, revenue efficiency rose to 96.4 percent, up from 90 percent. Investors familiar with the sector might also look at SeaDrill (SDRL). SeaDrill aims to increase production in the ultra deep water. This is one of many reasons why SeaDrill may pay a double-digit dividend yield.

Improving balance sheet

Transocean aims to lower its long-term debt to below $9 billion. While debt maturities are minimal in 2014, the firm plans to also retire $1 billion in debt ahead of schedule.

Risks

Transocean spooked investors at its quarterly conference call after suggesting day rates in the deepwater market would be between $365,000 and $400,000. Despite the low rate, Transocean investors will vote for approval of the proposed $3 per share dividend. This gives shares a dividend yielding 7.2 percent. Conversely, SeaDrill’s shares yield around 11 percent.

Firms in this sector require stable natural gas and oil prices to meet 2015 expectations.

Accumulate shares

Investors are likely to approve the higher dividend for Transocean. This should set a floor on its shares. Liabilities from the Macondo spill in the Gulf of Mexico could create uncertainties in the short term. This could create an entry point for income investors. SeaDrill’s volatility is also expected to continue. Like shares of Transocean, drops in SeaDrill’s shares are attractive for investors who want to build a position on dividend-paying stocks.

Disclosure: Author has a long position in SeaDrill.

Written by Chris Lau.

 

Click on the interactive chart to view data over time. 

 


1. Transocean Ltd. (RIG, Earnings, Analysts, Financials): Provides offshore contract drilling services for oil and gas wells worldwide. Market cap at $15.05B, most recent closing price at $41.57.

 

 


2. SeaDrill Limited (SDRL, Earnings, Analysts, Financials): Provides offshore drilling services to the oil and gas industries worldwide. Market cap at $16.56B, most recent closing price at $35.51.



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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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Source (s): Bloomberg DocumentDate (s): 18 hours ago DocumentDate_raw (n): 1427842084000 Link (s): http://www.bloomberg.com/news/articles/2015-03-31/oil-steady-after-quarterly-losing-streak-as-iran-talks-extended DocumentKey (s): HTTPwww.bloomberg.com/news/articles/2015-03-31/oil-steady-after-quarterly-losing-streak-as-iran-talks-extended DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |58464|241309|273807 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Three telecom stocks for dividend investors Link (s): http://folionation.squarespace.com/news/2015/3/31/three-telecom-stocks-for-dividend-investors.html Thumbnail (s): DocumentDate_raw (n): 1427817420000 DocumentDate (s): March 31, 2015 DocumentDate_smart (s): Mar 31, 2015 DocumentKey (s): 1107-290734296785735290219-1D78DNNFLRE5BGOU764888CGQH ContentType (s): Article TrackingPixel (s): Teaser (s):

These three Canadian telecom stocks with high dividend yields could be attractive for income investors. 

Collectively known as “Robellus,” Rogers Communications (RCI), BCE or Bell (BCE), and Telus (TU) are the three largest companies in Canada’s mobile carrier market. Despite generating respectable profits and revenue, all three are at yearly lows. It might be time for investors to take a serious look at these high dividend yield firms.

First it's useful to note that Rogers and Telus are at yearly lows in US currency (US$). Thanks to a drop in the Canadian dollar (C$), the share price of these firms has dropped in recent months. Rogers Communications offers an annual dividend of US$1.51 per share, a 4.44 percent yield. In the fourth quarter, Rogers earned C$0.69 per share on revenue of C$3.36 billion. 

Rogers’ stock is not without risk. The firm has invested in content, announcing a 12-year, C$5.23 billion deal to broadcast NHL games in 2013. The move has neither helped nor hurt profits so far. In the fourth quarter, Rogers boosted its consolidated adjusted operating profit margin from 36.0 to 36.6 percent. Wireless profit margin was 42.6 percent while cable was 48.7 percent.

Telus, which is a pure play telecoms firm, demonstrated a record-low postpaid wireless churn rate in its fourth quarter, at just 0.94 percent (download pdf). This measure refers to the portion of customers that leave the provider for whatever reason. Revenue and earnings were up, while free cash flow jumped by 148 percent to C$337 million.

Telus pays an annual dividend of US$1.27 per share, yielding 3.83 percent.

BCE's share prices peaked at US$48.27 this year, and the stock offers an annual dividend of US$2.04 per share. The yield is 4.79 percent. In the fourth quarter, revenue grew 2.7 percent from last year to C$5.53 billion, while earnings were up 2.9 percent to C$0.72 per share.

BCE is not without risk, either. Its content unit, Bell Media, is facing challenges in generating profitability. Last quarter, EBITDA (earnings before interest, taxes, depreciation and amortization) from the division dropped 16.5 percent. Still, Bell’s other main businesses, such as high-speed internet and wireless, increased by a healthy amount. Wireless revenue grew 9.6 percent while the high-speed internet customer count grew 4.7 percent to 2.29 million customers.

Interest rates are at all-time lows, which may make buying low volatility telecom firms in Canada an attractive proposition. 

Written by Chris Lau. â€‹â€‹

Click on the interactive chart to view data over time. 

All amounts in US$:

1. BCE Inc. (BCE, Earnings, Analysts, Financials): Provides wireline voice and wireless communications services, Internet access, data services, and video services to residential, business, and wholesale customers in Canada. Market cap at $35.77B, most recent closing price at $42.60.

BCE's annual dividend is $2.04 per share, a 4.79 percent yield.

 

2. Rogers Communications Inc. (RCI, Earnings, Analysts, Financials): Operates as a communications and media company in Canada. Market cap at $17.65B, most recent closing price at $34.04.

Rogers' annual dividend is $1.51 per share, a 4.44 percent yield.

 

3. TELUS Corporation (TU, Earnings, Analysts, Financials): Provides telecommunications products and services primarily in Canada. Market cap at $20.21B, most recent closing price at $33.20.

 Telus' annual dividend is $1.27 per share, a 3.83 percent yield.

 

(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. Dividends, yields and all other data sourced from FINVIZ.)

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Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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11 (o): [object Object] WSODIssue (s): |52948016|72887506|169373|174239 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Scalpel! Google moves into robotic surgery Link (s): http://folionation.squarespace.com/news/2015/3/30/scalpel-google-moves-into-robotic-surgery.html Thumbnail (s): DocumentDate_raw (n): 1427744220000 DocumentDate (s): March 30, 2015 DocumentDate_smart (s): Mar 30, 2015 DocumentKey (s): 1107-290734296785735289061-2K0AGU0OFEAIB0ER5LCB8RKS2I ContentType (s): Article TrackingPixel (s): Teaser (s):

Google has partnered with Johnson & Johnson to develop robotic surgery systems. 

Robots have been present in the operating room since the '80s, but last week's announcement that Google (GOOG) will partner with Johnson & Johnson's (JNJ) medical device arm Ethicon to develop robotic surgery systems could mark a turning point in this still-budding area of the healthcare sector. 

Google moves into robotics and healthcare

Robotics is becoming increasingly familiar territory for Google. In 2013 the firm bought Boston Dynamics, an MIT spinoff that had developed robots for the military. But patients need not worry that this thing will be wielding a scalpel. Nor will the company channel its self-driving car ambitions into the realm of surgery. For the foreseeable future, these robots will be guided by humans with MDs.

In any case, Ethicon will be leading the charge when it comes to developing the actual robotics and medical devices. Google's role will be to develop imaging tools and sensors, as well as more intuitive and effective ways to present information to surgeons—perhaps taking some of the cluttering out of the operating room.

Google is also making more frequent forays into the fields of healthcare and biotech, starting with its failed Google Health project. Google's biotech spinoff Calico announced in September that it would partner with AbbVie (ABBV) to research and treat health problems related to aging. Through its secretive innovation wing Google X, the company is trying to paint a picture of the ideal human genome as well as, through Google Ventures, to allow people to live to 500.

Think that's scary? So do many privacy advocates, who were at odds with Google long before it started collecting information on people's genes.

The competition

But in the short term, the ones who are really quaking in their boots are those with a stake in Intuitive Surgical (ISRG), the medical robotics company that is now making headlines for being in the Mountain View Juggernaut's path.

Not that Google's latest partnership is its only concern. Intuitive Surgical is involved in at least 50 lawsuits regarding its da Vinci robot. Plaintiffs have alleged that the machine itself caused them injury or even death as a result of malfunctions or poor design, as well as that the company failed to train operators sufficiently. On the other hand, Wedbush's Tao Levy has said that Intuitive Surgical's hernia treatments could lift its annual revenue by a third.

If Google's aim is to increase the safety of surgical procedures, they will certainly have to do better than Intuitive Surgical. Meanwhile investors should watch Google's expansion into the healthcare sector carefully.

Click on the interactive chart to view data over time. 

1. AbbVie Inc. (ABBV, Earnings, Analysts, Financials): Discovers, develops, manufactures, and sells pharmaceutical products worldwide. Market cap at $91.79B, most recent closing price at $57.65.

 

 

2. Google Inc. (GOOG, Earnings, Analysts, Financials): Google is the world's most popular search engine. Market cap at $373.21B, most recent closing price at $548.34.

 

 

3. Intuitive Surgical Inc. (ISRG, Earnings, Analysts, Financials): Designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Market cap at $18.32B, most recent closing price at $497.25.

 

 

4. Johnson & Johnson (JNJ, Earnings, Analysts, Financials): Engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Market cap at $279.00B, most recent closing price at $100.34.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

 

 

 

12 (o): [object Object] WSODIssue (s): |36276|45294|3699858|77435|89999|90050|219289|211573 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Apple TV might disrupt cable operators Link (s): http://folionation.squarespace.com/news/2015/3/30/apple-tv-might-disrupt-cable-operators.html Thumbnail (s): DocumentDate_raw (n): 1427729340000 DocumentDate (s): March 30, 2015 DocumentDate_smart (s): Mar 30, 2015 DocumentKey (s): 1107-290734296785735288631-1HCMA9QB3PHAJOGM2N042SVMUE ContentType (s): Article TrackingPixel (s): Teaser (s):

Apple is rumored to be rolling out a TV service. What could that mean for competitors?

Apple (AAPL) is expanding its business once again. This time, the computing giant is planning a TV service. According to The Wall Street Journal, Apple is talking with programmers as it plans a bundled service in the fall. Disney-owned (DIS) ABC, CBS (CBS) and Fox (FOXA) are reportedly part of the 25-channel package.

NBCUniversal is apparently being left out, due to Apple and Comcast’s (CMCSA) inability to work out a deal.

Competition heats up

At first glance, Netflix (NFLX) and Amazon (AMZN) will face greater competition as a result of Apple’s plan, but these firms offer inexpensive on demand services. Apple is late to the game, and will likely have trouble building up the kind of subscriber base that Netflix has.

Pricing may be a key differentiator that gives both Amazon and Netflix an edge. If Apple charges $30 to $40 per month, or $360 - $480 per year, that cost will be much higher than Netflix’s $9 per month and Amazon Prime’s $99 per year.

Need for content

Apple’s primary focus is hardware. The wildly successful iPhone and iPad earn healthy profits for Apple. Bundling content and making it available on all Apple devices would help the company boost its uniqueness in the marketplace.

Pay-TV and cable under pressure

TV offered over the Internet will continue to pressure cable firms like Dish Networks (DISH). While cable TV could once show 15 to 20 minutes of ads for every hour of programming, that luxury is no longer an option. Consumers are flocking to Netflix and prefer to watch content on mobile devices.

Apple TV’s bundling offer may disrupt the cable market, but the success depends on a few things. First, the monthly cost might need to fall. Second, the content may need to be delivered with far fewer commercials.

Written by Chris Lau. â€‹â€‹

Click on the interactive chart to view data over time. 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $717.90B, most recent closing price at $123.25.

 

 

2. Amazon.com Inc. (AMZN, Earnings, Analysts, Financials): Operates as an online retailer in North America and internationally. Market cap at $172.08B, most recent closing price at $370.56.

 

 

3. CBS Corporation (CBS, Earnings, Analysts, Financials): Operates as a mass media company in the United States and internationally. Market cap at $30.48B, most recent closing price at $61.21.

 

 

4. Comcas Corporation (CMCSA, Earnings, Analysts, Financials): Provides entertainment, information, and communications products and services in the United States and internationally. Market cap at $142.03B, most recent closing price at $55.94.

 

 

5. The Walt Disney Company (DIS, Earnings, Analysts, Financials): Operates as an entertainment company worldwide. Market cap at $179.27B, most recent closing price at $105.48.

 

 

6. Dish Network Corp. (DISH, Earnings, Analysts, Financials): Provides direct broadcast satellite (DBS) subscription television services in the United States. Market cap at $32.62B, most recent closing price at $70.63.

 

 

7. Twenty-First Century Fox Inc. (FOXA, Earnings, Analysts, Financials): Operates as a diversified media and entertainment company worldwide. Market cap at $70.88B, most recent closing price at $33.70.

 

 

8. Netflix Inc. (NFLX, Earnings, Analysts, Financials): Provides subscription based Internet services for TV shows and movies in the United States and internationally. Market cap at $25.09B, most recent closing price at $414.77.

 

 

(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.) 

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ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

13 (o): [object Object] WSODIssue (s): |56858|89607|136780|148633|184690|202757|277268|277628|278490 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Durable goods orders are down, and economic growth is slowing Link (s): http://folionation.squarespace.com/news/2015/3/26/durable-goods-orders-are-down-and-economic-growth-is-slowing.html Thumbnail (s): DocumentDate_raw (n): 1427406180000 DocumentDate (s): March 26, 2015 DocumentDate_smart (s): Mar 26, 2015 DocumentKey (s): 1107-290734296785735285248-5N677284OQI2VDG6ITLSC0O02J ContentType (s): Article TrackingPixel (s): Teaser (s):

Durable goods orders fell in February, and analysts are getting nervous about the economy's growth potential.

US orders for durable goods—manufactured goods meant to last at least three years—fell by 1.4 percent in February after rising 2 percent in January. Possible explanations for the drop include the strong dollar, which has put a damper on exports, and an unusually cold winter—the second in a row. 

These and other uninspiring numbers have led many analysts to revise their first quarter GDP growth estimates down in the past week. Morgan Stanley knocked its previous forecast of 1.2 percent annualized down to 0.9 percent, and JPMorgan Chase revised its projection downward from 2.0 percent annualized to 1.5 percent.

On Friday morning the Commerce Department said GDP grew at an annualized rate of 2.2 percent during the fourth quarter of 2014, roughly meeting analysts' expectations of approximately half the 5 percent growth the economy saw in the third quarter. The overall trend in economic growth may look bleak, but it could create an opportunity for investors who are confident that a turnaround is in sight.

The Industrial Select Sector SPDR Fund (XLI) is up 8.95 percent in the previous year despite a series of poor durable goods results. The Dow Jones Industrial Average (DJI), meanwhile, is lagging slightly at 8.8 percent:

The following list is taken from the Industrial Select Sector SPDR Fund's top holdings:

Click on the interactive chart to view data over time. 


1. The Boeing Company (BA, Earnings, Analysts, Financials): Engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. Market cap at $103.74B, most recent closing price at $148.23. Boeing is XLI’s fourth largest holding, at 5.11 percent portfolio weight and 2,684,955 shares.

 

 

2. Danaher Corp. (DHR, Earnings, Analysts, Financials): Designs, manufactures, and markets professional, medical, industrial, and commercial products and services primarily in North America, Europe, and Asia/Australia. Market cap at $59.53B, most recent closing price at $84.35. Danaher is XLI’s eighth largest holding, at 2.93 percent portfolio weight and 2,706,565 shares.

 

 

3. General Electric Company (GE, Earnings, Analysts, Financials): Operates as a technology, service, and finance company worldwide. Market cap at $250.78B, most recent closing price at $24.91. GE is XLI’s largest holding, at 9.35 percent portfolio weight and 29,248,634 shares.

 

 

4. Honeywell International Inc. (HON, Earnings, Analysts, Financials): Operates as a diversified technology and manufacturing company worldwide. Market cap at $79.57B, most recent closing price at $101.93. Honeywell is XLI’s sixth largest holding, at 4.24 percent portfolio weight and 3,240,753 shares.

 

 

5. Lockheed Martin Corporation (LMT, Earnings, Analysts, Financials): Engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. Market cap at $62.95B, most recent closing price at $199.02. Lockheed Martin is XLI’s ninth largest holding, at 2.85 percent portfolio weight and 1,115,321 shares.

 

 

6. 3M Company (MMM, Earnings, Analysts, Financials): Operates as a diversified technology company worldwide. Market cap at $103.27B, most recent closing price at $162.70. 3M is XLI’s third largest holding, at 5.34 percent portfolio weight and 2,554,296 shares.

 

 

7. Union Pacific Corporation (UNP, Earnings, Analysts, Financials): Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Market cap at $97.66B, most recent closing price at $110.82. Union Pacific is XLI’s second largest holding, at 5.36 percent portfolio weight and 3,764,164 shares.

 

 

8. United Parcel Service Inc. (UPS, Earnings, Analysts, Financials): Provides transportation, logistics, and financial services in the United States and internationally. Market cap at $87.96B, most recent closing price at $97.46. UPS is XLI’s seventh largest holding, at 3.47 percent portfolio weight and 2,776,897 shares.

 

 

9. United Technologies Corporation (UTX, Earnings, Analysts, Financials): Provides technology products and services to the building systems and aerospace industries worldwide. Market cap at $105.80B, most recent closing price at $116.46. United Technologies is XLI’s fifth largest holding, at 5.04 percent portfolio weight and 3,368,564 shares.

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. ETF holdings data sourced from Morningstar. All other data sourced from FINVIZ.)

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14 (o): [object Object] WSODIssue (s): |37668|72908|230134|252721|256919|67880620|293477 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Well, this is embarrassing: the AIIB leaves Washington in the dust Link (s): http://folionation.squarespace.com/news/2015/3/26/well-this-is-embarrassing-the-aiib-leaves-washington-in-the.html Thumbnail (s): DocumentDate_raw (n): 1427396220000 DocumentDate (s): March 26, 2015 DocumentDate_smart (s): Mar 26, 2015 DocumentKey (s): 1107-290734296785735285003-12NK35FLVO8BGTD2ND9OI1U9B6 ContentType (s): Article TrackingPixel (s): Teaser (s):

The US kicked, screamed and held its breath, but it can't stop the AIIB. What's that mean for these Asian stocks?

The urban population of the ASEAN nations—the Philippines, Vietnam, Thailand, Singapore, Brunei, Malaysia, Myanmar, Indonesia, Laos and Cambodia—is expected to double over the next five years. Unfortunately, the region's infrastructure isn't even remotely ready for that kind of population pressure, and the current rate of spending doesn't match the dire need for improvement. The 1997 Asian economic crisis gutted local governments' budgets, so that in the Philippines, investment in infrastructure in some years is half of what it was before the crisis. 

The Asian Development Bank (ADB) estimated in 2009 that the continent would need $8 trillion of investment in infrastructure by 2020. China has apparently concluded that existing institutions—the IMF, the World Bank and the Asian Development Bank itself—aren't up to the task. 

Enter the Asian Infrastructure Investment Bank (AIIB).

Sounds innocent enough: there's a clear need, a straightforward if costly solution and a global superpower conveniently willing to lead the charge. As it turns out, the world's other superpower is having none of it. The US has raised vague concerns over transparency and governance, which are not unreasonable qualms to have with anything China runs. 

But the real reason the US opposes the bank is that it provides a counter to Washington's pet global financiers, the World Bank and IMF—and indirectly the ADB, which is based in Manila but always run by a Japanese president. Just as these have in the past been arms of American influence and foreign policy, the AIIB will almost certainly reflect China's interests. 

The US has botched its response to this challenge, according to many. The Economist has accused it of pursuing a "containment" policy that is no more likely to work than previous attempts. The charge seems reasonable enough in light of Washington's recent "pivot" towards the Asian Pacific region, including its proposed, conspicuously China-less, Trans-Pacific Partnership.

Issues of right and wrong aside, America's hostility towards the AIIB has proved ineffective and downright embarrassing. Staunch NATO allies have signed up, beginning with Britain and then spreading to Italy, France and Germany. Attention then turned to South Korea, an aspiring middle power that increasingly feels like the monkey in the middle when it comes to US-China power plays. 

Seoul signed on Thursday morning. 

The presence of so many democracies and developed economies in the AIIB should alleviate Washington's stated concerns, as should the fact that China has given up veto power in the bank's decision making. But now that the political points have been scored, the question remains: will the AIIB do any practical, tangible good? Its initial capital is just $50 billion, a third that of the ADB. 

So was it all just diplomatic theater? These Asian insfrastructure stocks hope not. We ran a screen for small- to large-cap companies in the Asian basic materials sector. If the AIIB's investment ends up spurring real improvements in Asia's infrastructure, these companies could be the first to benefit.

Click on the interactive chart to view data over time. 

1. Aluminum Corporation Of China Limited (ACH, Earnings, Analysts, Financials): 1. Aluminum Corporation Of China Limited (ACH): Engages in the manufacture and distribution of alumina, primary aluminum, and aluminum fabrication products in the People's Republic of China and internationally. Market cap at $11.46B, most recent closing price at $11.61.

 

 

2. CNOOC Ltd. (CEO, Earnings, Analysts, Financials): 2. CNOOC Ltd. (CEO): Engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. Market cap at $59.86B, most recent closing price at $134.87.

 

 

3. POSCO (PKX, Earnings, Analysts, Financials): 3. POSCO (PKX): Engages in the manufacture and sale of steel products in South Korea and internationally. Market cap at $19.87B, most recent closing price at $57.78.

 

 

4. Sinopec Shanghai Petrochemical Co. Ltd. (SHI, Earnings, Analysts, Financials): 4. Sinopec Shanghai Petrochemical Co. Ltd. (SHI): Engages in the production of polypropylene compound products, polypropylene products, acrylic fiber products, petrochemical products, synthetic fibers, resins and plastics, and petroleum products in China and internationally. Market cap at $7.67B, most recent closing price at $33.05.

 

 

5. China Petroleum & Chemical Corp. (SNP, Earnings, Analysts, Financials): 5. China Petroleum & Chemical Corp. (SNP): Engages in the exploration, development, production, and marketing of crude oil and natural gas properties primarily in China. Market cap at $114.59B, most recent closing price at $77.02.

 

 

6. Sesa Sterlite Limited (SSLT, Earnings, Analysts, Financials): 6. Sesa Sterlite Limited (SSLT): Is primarily engaged in exploring, extracting, and processing minerals, and oil and gas. Market cap at $8.89B, most recent closing price at $12.52.

 

 

7. Yanzhou Coal Mining Co. Ltd. (YZC, Earnings, Analysts, Financials): 7. Yanzhou Coal Mining Co. Ltd. (YZC): Engages in the underground mining, preparation, and sale of coal. Market cap at $8.18B, most recent closing price at $7.79.

 

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

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Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

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15 (o): [object Object] WSODIssue (s): |220999|257194|284550|287373 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): EPA and coal plant showdown at the Supreme Court Link (s): http://folionation.squarespace.com/news/2015/3/25/epa-and-coal-plant-showdown-at-the-supreme-court.html Thumbnail (s): DocumentDate_raw (n): 1427301600000 DocumentDate (s): March 25, 2015 DocumentDate_smart (s): Mar 25, 2015 DocumentKey (s): 1107-290734296785735283272-0SD5P5VOAM4CD6EJQTQ3UF0TDP ContentType (s): Article TrackingPixel (s): Teaser (s):

The Supreme Court will rule on coal plants' air-polluting ways by the end of June. #teamEPA or #teamcoal?

On Wednesday, the Supreme Court heard oral arguments in three cases that challenge the Environmental Protection Agency's 2012 regulation limiting mercury and toxic pollutant emissions from coal plants.

The coal plants argue that the EPA should have taken the high cost of compliance—a reported $9.6 billion—into consideration when it decided to regulate emissions, and failure to do so is a violation of the Clean Air Act's stipulation that regulations be "appropriate and necessary." 

The EPA, as The New York Times reports, claims the Clean Air Act only considers costs when emission standards are set, which happens at a later stage in the regulatory process. According to the agency, deciding whether or not to set limits for specific air pollutants is one of the earlier stages and doesn't require a cost-benefit analysis.

However, the EPA did include the regulation's potential benefits in its brief to the court, noting that it could prevent up to 11,000 premature deaths each year as well as "exceed their total costs by between $27 billion and $80 billion" annually.

The Supreme Court isn't expected to rule on the case until the end of June, but here's a list of companies that may fare the best if the regulation remains intact. These coal plant-operating utilities companies have more profitability than the industry average as indicated on the basis of three trailing twelve month (TTM) profitability margins: gross, operating and pretax.

Having higher gross margins than their respective industry averages shows that these companies are able to retain more money from each dollar generated in sales than many of their peers.  This means the firms have more money for paying off expenses and obligations, which could also include compliance costs. 

Additionally, each company has growing profits as illustrated by rising diluted normalize earnins per share (EPS) for the past three consecutive years. Investors should note that diluted normalized EPS is usually lower and more conservative than normalized EPS. 

Click on the interactive chart to view data over time. 

1. OGE Energy Corp. (OGE, Earnings, Analysts, Financials): Operates as an energy and energy services provider that offers physical delivery and related services for electricity and natural gas primarily in the south central United States. Market cap at $6.35B, most recent closing price at $31.91.

TTM gross margin at 33.35% vs. industry average at 31.49%.

TTM operating margin at 21.88% vs. industry average at 20.37%.

TTM pretax margin at 23.18% vs. industry average at 14.93%.

Diluted normalized EPS increased from 1.5 to 1.74 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS increased from 1.74 to 1.76 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS increased from 1.76 to 1.94 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

 

2. Southern Company (SO, Earnings, Analysts, Financials): Operates as a utility company that provides electric service in the southeastern United States. Market cap at $40.66B, most recent closing price at $44.52.

TTM gross margin at 34.95% vs. industry average at 31.49%.

TTM operating margin at 24.42% vs. industry average at 20.37%.

TTM pretax margin at 16.29% vs. industry average at 14.93%.

Diluted normalized EPS increased from 2.36 to 2.55 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS increased from 2.55 to 2.66 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS increased from 2.66 to 2.76 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

 

3. Wisconsin Energy Corp. (WEC, Earnings, Analysts, Financials): Engages in the generation, distribution, and sale of electric energy and steam. Market cap at $11.22B, most recent closing price at $49.62.

Diluted normalized EPS increased from 1.37 to 2.17 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS increased from 2.17 to 2.34 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS increased from 2.34 to 2.51 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

TTM gross margin at 30.38% vs. industry average at 26.61%.

TTM operating margin at 22.2% vs. industry average at 16.94%.

TTM pretax margin at 19.01% vs. industry average at 12.03%.

 

 

4. Westar Energy Inc. (WR, Earnings, Analysts, Financials): Engages in the generation, transmission, and distribution of electricity. Market cap at $5.07B, most recent closing price at $38.15.

TTM gross margin at 35.34% vs. industry average at 31.49%.

TTM operating margin at 24.33% vs. industry average at 20.37%.

TTM pretax margin at 18.2% vs. industry average at 14.93%.

Diluted normalized EPS increased from 1.8 to 1.93 during the first time interval (12 months ending 2011-12-31 vs. 12 months ending 2010-12-31).

For the second time interval, diluted normalized EPS increased from 1.93 to 2.15 (12 months ending 2012-12-31 vs. 12 months ending 2011-12-31).

And for the last time interval, the EPS increased from 2.15 to 2.27 (12 months ending 2013-12-31 vs. 12 months ending 2012-12-31).

 

 

(List compiled by Mary-Lynn Cesar. Monthly return data sourced from Zacks Investment Research. EPS data sourced from Yahoo! Finance. Accounting data sourced from Google Finance. All other data sourced from FINVIZ.)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

*/ 2 Deepwater Drilling Stocks for Income Investors Seeking Dividends

2 Deepwater Drilling Stocks for Income Investors Seeking Dividends

Income investors looking for dividends should check out these deepwater drilling stocks. 

After trading sharply lower for the last few months, deepwater drillers are starting to come back. Transocean Ltd. (RIG) kicked off a renaissance in the sector when the company reported respectable quarterly results. Given stocks in this sector pay a healthy dividend yield, it is worthwhile for income investors to look at Transocean again.

Transocean beats expectations

Transocean lowered its costs during the first quarter. Fleet utilization was much higher than the market expected. Revenue efficiency soared to 95.7 percent, which is the highest Transocean achieved since early 2008. In the Ultra deep water segment, revenue efficiency rose to 96.4 percent, up from 90 percent. Investors familiar with the sector might also look at SeaDrill (SDRL). SeaDrill aims to increase production in the ultra deep water. This is one of many reasons why SeaDrill may pay a double-digit dividend yield.

Improving balance sheet

Transocean aims to lower its long-term debt to below $9 billion. While debt maturities are minimal in 2014, the firm plans to also retire $1 billion in debt ahead of schedule.

Risks

Transocean spooked investors at its quarterly conference call after suggesting day rates in the deepwater market would be between $365,000 and $400,000. Despite the low rate, Transocean investors will vote for approval of the proposed $3 per share dividend. This gives shares a dividend yielding 7.2 percent. Conversely, SeaDrill’s shares yield around 11 percent.

Firms in this sector require stable natural gas and oil prices to meet 2015 expectations.

Accumulate shares

Investors are likely to approve the higher dividend for Transocean. This should set a floor on its shares. Liabilities from the Macondo spill in the Gulf of Mexico could create uncertainties in the short term. This could create an entry point for income investors. SeaDrill’s volatility is also expected to continue. Like shares of Transocean, drops in SeaDrill’s shares are attractive for investors who want to build a position on dividend-paying stocks.

Disclosure: Author has a long position in SeaDrill.

Written by Chris Lau.

 

Click on the interactive chart to view data over time. 

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1. Transocean Ltd. (RIG, Earnings, Analysts, Financials): Provides offshore contract drilling services for oil and gas wells worldwide. Market cap at $15.05B, most recent closing price at $41.57.

 

 

2. SeaDrill Limited (SDRL, Earnings, Analysts, Financials): Provides offshore drilling services to the oil and gas industries worldwide. Market cap at $16.56B, most recent closing price at $35.51.

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Transocean Ltd.(RIG, Chart, Download SEC Filings) SeaDrill Limited(SDRL, Chart, Download SEC Filings)

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© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

 

 

 

 

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