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Leucadia National Corp. (NYSE:LUK) is a conglomerate with diversified businesses across many different industries. Although not well known by regular retail investors and Wall Street, it has long been a favorite of value investors. It is called by some as one of the two "Baby Berkshire Hathaway" companies for a reason. (The other is Markel (NYSE:MKL))

First, the company has long been value oriented. The old management Ian M. Cumming and Joseph S. Steinberg are very famous in the circle of value investors. Some famous value investors like Bruce Berkowitz not only liked them a lot, but even said he personally thinks they are better than Warren Buffett (I don't really agree though).

To be fair, I think Cumming and Steinberg have very different styles from Buffett. First, Leucadia is not a company built on top of an insurance business. There is no large amount of "free" float to

Complete Story » By Value Record:

Investment Thesis

Xerox Corporation (NYSE:XRX) is increasingly a business services company. The printer business ("Document Technology") is an ex-growth cash cow and will continue to generate cash for a long time. It is attractive priced in absolute terms, and has a shareholder-friendly strategy of returning capital through dividends and buybacks.

Investment Thesis Review

Services Business: The Services Segment grew revenues 3% in 2013 and now represents 55% of total revenues. Its contribution at the PBT level is even higher. Some of the increase in contribution is due to the fact that Document Technology shrank slightly, but as long as the overall profitability remains stable to slightly improving, the revenue quality of the overall business is improving -- which is a positive.

2009-13 Services Segment Revenue

Source: Xerox Annual Report.

This segment is an attractive business composed of Business Process Outsourcing (59% of Services revenue), IT Outsourcing (13% of Services revenue)

Complete Story » By Oil And Gas Interest:

Q2 is out for Encana (NYSE:ECA) and with it came a major operational update.

The quarterly earnings arrived slightly below expectations. But the more important news was the progress made towards achieving a more balanced portfolio of natural gas, oil, and liquids and the increased forecast of $500M in terms of both operating cash flows and free cash flows for 2014.

Bottom line: The restructuring plan announced last November is well ahead of schedule. Quoting management on the call, they are one or two years ahead of their 2017 objectives. That means that by mid-2015 (a year from now), the ship will have fully righted itself according to them. Something all shareholders should feel cheerful about as it also announces a return to higher payouts for shareholders sooner rather than later.

This article is focused on the near-term outlook for Encana. I will look into several aspects of the firm

Complete Story » By Diamond Technology Management:

Situation: Kindred Biosciences(NASDAQ: KIN) is a biotechnology company that develops medicine for pets. Kindred seeks to identify drugs that have been validated in humans and develop animal versions to treat and cure pets. The company aligns well with pet market dynamics, with a majority of pet owners willing to spend large amounts on their pet's health and appearance, many times viewing their pets as part of their family. The company completed its initial public offering in December 2013 at $7 per share and since then has more than doubled to around $16 a share. The companies stock has appreciated as a result of Kindred Biosciences continuing to develop its extensive pipeline, with its most advanced candidates being: CereKin for the treatment of osteoarthritis pain and inflammation in dogs, AtoKin for the treatment of atopic dermatitis in dogs, and SentiKin for the treatment of post-operative pain in dogs.

What Does

Complete Story » By Munger Fan:


Alaska Communications (NASDAQ:ALSK) is a bargain company that is valued at a mere $85 million for the entire common share issue. It now owns a third of the most extensive wireless network in Alaska as a portfolio investment (not one where it has to spend tremendous CAPEX on). It owns 2 out of the 4 undersea optic fiber cables that connect Alaskan internet to the lower 48. These cables are currently not being utilized to their full abilities due to conditions imposed by the loss of an anti-trust suit many years ago, where ALSK had to sell their wholesale services well below cost to a big competitor. But these conditions have been mostly removed around 2007/2008. ALSK can now invest in their internet/broadband infrastructure like never before due to the removal of severely unfair anti-trust rulings and the extra capital freed up from not having to operate a wireless

Complete Story » By Early Retiree:

SMT Scharf (OTC:SMTAF) is a German mining equipment manufacturer with 90% of its revenues coming from abroad. The company has an enterprise value of about €80 million and is the global market and technology leader for rail-bound railway systems.

After my first article on the company there has been a deluge of predominantly bad news on the company and I'd like to update my readers on the most important developments and related considerations.

Lots of bad news

On Monday, 3/24, SMT Scharf not only communicated a 49% drop of its EBIT compared to 2012, but most importantly surprised investors with a disappointing outlook:

The weak investment climate on the global mining equipment market set us back a lot last year. We currently see no brightening of the situation in the short term, however. For this reason, we anticipate that our current-year revenue, operating output and EBIT will register a further

Complete Story » By Scott Kennedy:

Focus of Article:

The focus of this article is to provide a detailed projection of Fifth Street Senior Floating Rate Corp.'s (NASDAQ:FSFR) net asset value ('NAV') per share as of 6/30/2014. Prior to results being provided to the public on 8/14/2014 (via the company's quarterly press release), I would like to analyze FSFR's NAV as of 6/30/2014 and provide readers a general direction on how I believe this recent quarter has panned out.

In some quarters, I anticipate providing readers a projection article for FSFR in regards to the company's consolidated statement of operations. However, due to time constraints regarding research on other companies, I felt it would be best to just provide this NAV article for the fiscal third quarter of 2014. As such, I will also include my quarterly "net investment income" ('NII') and "net increase (decrease) in net assets resulting from operations" (also known as "earnings per

Complete Story » ByUCLA Grad:

I believe the market misunderstands the growth potential of the Wi-Fi story. Using conservative assumptions, I value Boingo Wireless (NASDAQ:WIFI) 90% more than the current stock price plus investors get a fee call option on Wi-Fi offload.

"We saw significant contributions from our strategic growth opportunities and continue to believe that we've turned the corner and that the headwinds of 2012 and 2013 are behind us." David Hagan, CEO 1 st 2014 Quarter Conference call

Investment Thesis

As more people use streaming media services like Netflix and Hulu, share their lives on sites like Facebook and Instragram and desire to constantly stay connected to email and text, the growth in data will continue to grow exponentially. Cellular network capacity constraints are forcing major telecom companies to spend hundreds of billions of dollars to increase the capacity of cellular networks. According to Cisco, the growth in data traffic will grow 18x

Complete Story »

Chunghwa Telecom (NYSE:CHT)

Q2 2014 Earnings Conference Call

July 30, 2014 04:00 ET


Fu-fu Shen – Director, IR

Rick Tsai – Chairman

Mu-Piao Shih – President

Chen Boyong – CFO


Danny Chu – Macquarie

Neale Anderson – HSBC

Gopakumar Pullaikodi – Nomura

Sydney Zhang – Bank of America Merrill Lynch

Tina Hou – Goldman Sachs

Steven Liu – Standard Chartered

Gary Yu – Morgan Stanley



Welcome to the Chunghwa Telecom conference call for the company’s second quarter 2014 operating results. (Operator Instructions). And now, I would like to turn it over to Fu-fu Shen, the Director of Investor Relations. Ms. Shen, please go ahead.

Fu-fu Shen

Thank you. This is Fu-fu Shen, the Director of Investor Relations for Chunghwa Telecom. Welcome to our second quarter 2014 earnings results conference call. Joining me on the call today are, Dr. Tsai, Chairman; and Mr. Shih, President and Mr.

Complete Story »

One of the arguments as to why monetary policy should continue to be loose, both for the Federal Reserve in the United States and for other central banks around the world, is to avoid the risk of a bout of deflation. But is that fear overstated? The Bank of International Settlements offers a discussion "The costs of deflation: what does the historical record say?" in its 84th Annual Report published last month. (For those not familiar with BIS, it's a Swiss-based international organization that has been around since 1930, and serves as a main forum for consultation and cooperation between central banks.)

When looking at historical episodes of deflation, the BIS offers a simple comparison. Look at the five years before and after an episode of deflation started for a range of countries, and see what happened to growth of real GDP during that time. As a starting point,

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:30 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:30 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story » By Marc Chandler:

The US dollar is extending its gains in response to the strong US GDP figures. There are four elements of the report to note. First, the economy expanded by 4.0% in Q2, well above consensus expectations. Second, Q1 was revised to show a 2.1% contraction rather than 2.9%. Third, personal consumption improved to 2.5% from a revised 1.2% pace in Q1 (originally 1.0%). Fourth, and arguably even more significant that the growth itself is the core PCE deflator. It rose to 2.0% from 1.2%.

On a year-over-year basis, the US economy expanded by 2.4%, which is close to what economists view as trend growth. Recall that the part of the shock from Q1 was a drop in service consumption. Today's report has service consumption adding 0.31 percentage points to GDP. Inventories added 1.66% and trade subtracted 0.61%. Business investment contributed 0.9 percentage points to growth. It increased by 5.9% at

Complete Story » By Benjamin Clark:

There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected five of the undervalued companies reviewed by ModernGraham with high dividend yields. Each company has been determined to be suitable for the Enterprising Investor according to the ModernGraham approach, which is a modernized version of legendary value investor Benjamin Graham's requirements for Intelligent Investing.

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Each company suitable for the Defensive Investor is also suitable for Enterprising Investors.

To see the full valuations of each of the following companies, please

Complete Story » By Ironman at Political Calculations:

What does it mean when the trends for non-farm payroll jobs and total employment in the U.S. are on two separate and diverging tracks?

We're asking that question today because of something we've observed in the data for the state of Illinois while working on a different project. The chart below shows what we found when we looked at that state's total employment numbers and nonfarm payroll jobs since December 2012.

(click to enlarge)

Here, we observe that the trends for the state's total employment and for the state's non-farm payroll jobs would appear to be on diverging trajectories over time. As we've previously discussed in considering the differences between the Household and Establishment surveys that document employment trends in the U.S., that pattern is largely due to cyclical factors related to turning points in the economy:

One other factor that can contribute to differences between the two surveys' reported

Complete Story » By Trevor Lowenthal:

Executive summary

There are some innovative, smaller companies out there that have leveraged the increasingly complicated and unpredictable pharmaceutical industry through diversifying their portfolio of assets across numerous technology types, therapeutic indications, drug targets and industry partners. Ligand Pharmaceuticals (NASDAQ:LGND) is no exception.

During a time of impending patent expirations on major blockbuster drugs which have placed top-line pressure on large pharmaceutical companies, as well as increasing competition in many therapeutic areas, I believe Ligand has amassed one of the largest and most diversified portfolios of royalty-generating assets in the industry.

Thus, for those investors who've been searching for a de-risked mid-cap pharmaceutical play with encouraging prospects for long-term growth, I believe Ligand could be a great fit. Continue reading and I'll tell you why.

Size matters

In the pharmaceutical industry, it's prevalent that size matters -- that is, the size of the pipeline, of course. The primary reason an

Complete Story » By Bret Jensen:

My regular readers that follow me on Real Money Pro, Seeking Alpha or recently Investors Alley over the past six months know what a huge bull I am on Gilead Sciences (NASDAQ:GILD). Not only is it by far the biggest position in my portfolio but I also consider it the cheapest large cap growth stock in the market right now.

Although I have held the shares since the low $40s, I have kept adding shares to my portfolio, as I believe the Sovaldi juggernaut is just getting unleashed. I was especially active during the big biotech sell-off that triggered a decline into the mid $60s in March. This was a gift I do not believe will be repeated any time in the foreseeable future.

In previous articles I have discussed why Gilead's hepatitis C drug (Sovaldi) is on its way to being the biggest new drug in sales in

Complete Story » By Atticvs Research:

The regulatory environment for oil and gas development in Colorado is attracting a lot of attention. Citizens, concerned about the quality of air and water pollution, are pushing for tighter regulations. Having effected some of the most aggressive anti-fracking rules in the country last year which require 500 to 1,000 foot drilling rig set-backs from occupied buildings, a new 2,000 foot set-back proposal has been tabled for the November 4, 2014 ballot together with tighter controls over drilling. Somewhat belatedly, drillers are now coming together to fight the proposed measures; on July 16 Anadarko (NYSE:APC), Whiting (NYSE:WLL) and Encana (NYSE:ECA) announced that they will collectively spend $50 million to counteract the ballot proposals.

It will be interesting to watch this story unfold over the next 3 months. It may have implications not just for Colorado but, to a greater or lesser extent, for the shale oil and gas industry across

Complete Story » By Neoclassical Economist:

Exchange-traded Notes (ETNs) are senior, unsecured, unsubordinated debt securities that provide investors with exposure to the total returns of various market indices, including those linked to stocks, bonds, commodities and/or currencies, less investor fees. ETNs must not be confused with ETFs (Exchange-traded Funds) - unlike ETFs, ETNs are bond instruments with a set maturity date that do not buy or hold assets to replicate or approximate the performance of the underlying index.

I think it is important that investors understand the concept of an ETN's indicative value and always keep track of that value in relation to the market price.

Indicative Value versus Market Price

An ETN's "indicative value" is used to measure the intrinsic value of each ETN and is calculated and published by the issuer at least once a day. However, the indicative value should be used for reference purposes only, and is not an indication of the

Complete Story » ByBen Kramer-Miller:

Primero Mining (NYSE:PPP) announced that it is delaying its decision to construct its third mine - Cerro Del Gallo. According to the news report the decision was made so that management can develop a higher grade ore region in order to optimize the project given the low gold price environment. Management reassures us that the project is moving forward as the company continues to permit the project, work on basic engineering, and explore. Despite what the press release says I think that the decision to delay construction of Cerro Del Gallo is related to the Brigus Gold acquisition from earlier in the year. This is the case because estimated production costs are far too low for Primero to be concerned about the low gold price. While further drilling may be able to cut costs somewhat, it is hard to believe that it can do so meaningfully from the $725/oz. level

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story »

The following audio is from a conference call that will begin on July 30, 2014 at 09:00 AM ET. The audio will stream live while the call is active, and can be replayed upon its completion.

Listen now

Complete Story » By Richard Shaw (QVM Group):

One approach to seeking fair value, or simply what is most likely, over the intermediate-term to long-term is the assumption of mean reversion. That approach basically assumes that long-term means act a bit like gravity or a magnetic attraction that pulls on prices, earnings or dividends to return to the mean growth level.

It may take a lot of patience for that approach, and if there is a permanent structural change in markets, the former mean may not continue to serve as gravitational or magnetic attraction. On the other hand, structural changes are few and far between, making mean reversion a pretty good bet more often than not.

So, let's discover the long-term means for S&P 500 prices, GAAP earnings and dividends, and then apply those means to make reasonable 5-year projections of those dimensions into the future.

Let's use the S&P monthly data available from Professor Shiller at Yale

Complete Story » By Morningstar:

By Samuel Lee

This article was published in the July 2014 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.

In early June, State Street launched a series of foreign-equity SPDR exchange-traded funds tracking MSCI's Quality Mix, or QM, indexes. The funds charge 0.30%, making them the cheapest or near cheapest options in their respective categories.

The QM index rides on the coattails of AQR researchers Andrea Frazzini, David Kabiller, and Lasse Pedersen's paper "Buffett's Alpha," which argues that the returns of Buffett's public equity portfolio, estimated from quarterly 13F filings, can be explained by exposure to value, quality, and low-volatility (or, more precisely, betting against beta) factors. While I don't believe they've completely distilled Buffett's essence into a set of mechanical rules, they've captured enough of it.

The QM index doesn't replicate Frazzini et al.'s procedure; rather, it equal-weights MSCI's Value Weighted, Quality, and Minimum Volatility

Complete Story » By David Moenning:

Tuesday's stock market action was interesting on several fronts. In the morning, it appeared that the bulls were about to recover their lost momentum mojo in response to a second consecutive monthly surge in Consumer Confidence. But then the politicians started making headlines about new sanctions for Russia - and the bottom line is, yes, the algos noticed each and every one of those headlines.

At about 11:00 am eastern time, the major indices had moved to the high of the day and the S&P 500 had retraced all of the prior two days' declines. Things were looking up. After all, when consumers are in a good mood, they tend to spend more time at the malls and/or online - buying stuff. In short, the strong improvement in Consumer Confidence meant the argument could be made that the economy might be able to perform above expectations going forward.

However, about

Complete Story »
Updated: 5 hours 26 min ago

The Dude Abides: China In The Golden Age Of Central Bankers

3 Jul ’14

A compassionate man once caught a turtle. He wanted to make it into soup, but unwilling to be accused of taking life, he boiled a pan full of water and, placing a narrow rod over the pan, said to the turtle, “If you can get across the pan, I will set you free.”

The turtle was in no doubt as to the intentions of the man. But he did not want to die. So, summoning up all his will, he accomplished the impossible.

“Well done!” said the man. “Now … please try it again.”

Cheng Shi (12th – 13th century AD)

It doesn’t matter whether the cat is black or white, as long as it catches mice.
Deng Xiaoping (1904 - 1997)

In approaching a problem a Marxist should see the whole as well as the parts. A frog in a well says, “The sky is no bigger

Paychex's (PAYX) CEO Martin Mucci on Q4 2014 Results - Earnings Call Transcript

3 Jul ’14

Paychex, Inc. (PAYX)

Q4 2014 Results Earnings Conference Call

July 02, 2014, 10:30 AM ET


Martin Mucci - President and CEO

Efrain Rivera - SVP, CFO and Treasurer


David Togut - Evercore Partners

Ryan Cary - Jefferies & Co.

Ashish Sabadra - Deutsche Bank

Sara Gubins - Bank of America Merrill Lynch

Jeffrey Rossetti - Janney Capital Markets

Gary Bisbee - RBC Capital Markets

James MacDonald - First Analysis Securities

David M. Grossman - Stifel, Nicolaus & Co., Inc.

Glenn Greene - Oppenheimer & Co.

Jeffery Silber - BMO Capital Markets

George Mihalos - Credit Suisse

Mark S. Marcon - Robert W. Baird

Michael Baker - Raymond James

Ashwin Shirvaikar - Citigroup



Welcome and thank you for all for holding. I would like to inform participants that your lines have been placed on a listen-only mode until the question-and-answer portion. (Operator Instructions). Today's conference is also

Integrated Device Technology: Short Candidate... But Only On The Trend Bend

3 Jul ’14

The Value in Trends© (VIT) system uses a quantitative approach to screen for value. Then, the trend direction, momentum and condition is analyzed to determine investment entry/exit points. The ViT system produces an efficient overview of the fundamentals and technicals of a company, paving the way for further extensive research into economic conditions, industry dynamics and company specifics.


In their Q4 FY14 results, IDTI announced revenue from continuing operations was $118.6 million, compared with $107.8 million reported in the same period a year earlier. The non-GAAP or adjusted EPS figure of $0.14 beat the expected analyst figure of $0.13 by 7.7%.

Analysts greeted the non-GAAP revenue and earnings beat with enthusiasm. For 2015, the consensus is now $526.7 million in sales with an EPS of $0.69. For 2016, sales are expected to rise to $561.8 million with EPS coming in at $0.76,

Energy Select Sector SPDR ETF: 2014 Halftime Report And Seasonality

3 Jul ’14

The Energy Select Sector SPDR ETF (XLE) in the first half of this year ranked No. 2 by returns among the Select Sector SPDRs that split the S&P 500 into nine segments. On an adjusted share-price basis, XLE ballooned to $100.10 from $87.67, a burgeoning of $12.43, or 14.18 percent.

XLE thus overperformed the SPDR S&P 500 ETF (SPY) by a lot and underperformed the Utilities Select Sector SPDR (XLU) by a little. During the first half, the former grew to $195.72 from $183.00, an increase of $12.72, or 6.95 percent, while the latter progressed to $44.26 from $37.34, a yield of $6.92, or 18.53 percent.

Almost all the differences in relative performance among the Select Sector SPDRs in the first half appear attributable to the sector rotation one would anticipate at this late point in the economic/market cycle. However, XLE seems to be stepping to the

Genworth Financial: A Good Return But Time To Sell

3 Jul ’14

We invested in Genworth Financial (GNW) during November 2012 after the share price fell to $5.50/share. The investment thesis [Source] discusses the company then trading at about 16% of book value ($33.52/share); 25% of estimated intrinsic value ($22/share); and 32% of net tangible assets ($17.31/share). The worst of the financial crises was behind it and at that price, equity holders were still well covered with $3 of tangible assets for every $1 they invested in the shares even after all liabilities were paid. Mr. Market was being generous.

The combination of improved macroeconomic, industry, and company specific conditions worked favorably to increase the share price to about $17.65/share today for a 220% gain. There is still potential more gains (shares have not yet reached the intrinsic value estimate of $22/share), but we are going to sell GNW and lock in the gain to reduce risk.

Through the 19

Is EOG Resources A Good Investment?

3 Jul ’14

EOG Resources (EOG) is one of the most attractive stocks in the Energy sector. The stock has shown robust growth of 41.63% year-to-date. Over a two-year period, the stock has shown a tremendous growth of over 161%. The company operates in the following four business segments:

  1. Crude oil and condensate
  2. Gathering, processing and marketing
  3. Natural Gas
  4. NGL

According to the revenues reported for last year, the crude oil and condensate segment is the largest segment for the company, and accounts for about 58% of the total revenue; the second-largest segment is the gathering, processing and marketing segment, with 25% share in total revenues - the other two segments account for the remaining revenues. In this article, we will discuss the company's fundamentals, and focus on its future growth and the resources it has to back this growth.

A Look at the Fundamentals

EOG's revenues are growing at a rapid pace

Interested In A 100%+ Annual Rate Of Gain 7 Times Out Of 8, With Worst-Case Risk At -10%?

3 Jul ’14

Check out MIDU focus articles here on Seeking Alpha

It's easy to do. Go to the Home tab at the left-top of almost every SA page. Then in the search window at the top right of the home page enter MIDU.

What I found to my amazement was that there were NO focus articles on Direxion Daily Mid-Cap Bull 3X Shares (MIDU), an Exchange Traded Fund. And only "251 people get MIDU breaking news and analysis by email alert."

How many other equity investments have this kind of a 5-year buy-and-hold record?

(click to enlarge)

When I last checked, 1,000 times as many SA readers "get AAPL breaking news and analysis by email alert." From the same starting date up to today, both MIDU and AAPL wind up at the same accumulated wealth over 5 years.

Why is MIDU unloved and unattended? Ignorance of reality, probably. Besides,

The Greenbrier Companies' (GBX) CEO William Furman on Q3 2014 Results - Earnings Call Transcript

3 Jul ’14

Start Time: 11:07

End Time: 12:07

The Greenbrier Companies, Inc. (GBX)

Q3 2014 Earnings Conference Call

July 2, 2014 11:00 AM ET


William A. Furman - Chairman, President and CEO

Mark J. Rittenbaum - EVP and CFO

Lorie L. Leeson - SVP of Corporate Finance and Treasurer


Matt Brooklier - Longbow Research

Justin Long - Stephens Inc.

Bascome Majors - Susquehanna Financial Group

J. B. Groh - D.A. Davidson & Co.

Ken Hoexter - Bank of America Merrill Lynch

Mike Baudendistel - Stifel Nicolaus & Company, Inc.

Salvatore Vitale - Sterne Agee & Leach Inc.



Hello, and welcome to The Greenbrier Companies Third Quarter of Fiscal Year 2014 Earnings Conference Call. Following today's presentation, we will conduct a question-and-answer session. Each analyst’s should limit themselves to only two questions. Until that time, all lines will be in a listen-only mode. At the request of the Greenbrier

Constellation Brands' (STZ) CEO Rob Sands on F1Q 2015 Results - Earnings Call Transcript

3 Jul ’14

Constellation Brands, Inc. (STZ)

F1Q 2015 Earnings Conference Call

July 2, 2014 10:30 ET


Patty Yahn-Urlaub - Vice President, Investor Relations

Rob Sands - President and Chief Executive Officer

Bob Ryder - Chief Financial Officer


Nik Modi - RBC

Alice Longley - Buckingham Research

Bryan Spillane - Bank of America/Merrill Lynch

Bill Chappell - SunTrust

Mark Swartzberg - Stifel Nicolaus

Caroline Levy - CLSA

Rob Ottenstein - ISI

John Faucher - JPMorgan

Ryan Gallant - Goldman Sachs

Lauren Torres - HSBC

Brett Cooper - Consumer Edge Research



Ladies and gentlemen, thank you for standing by, and welcome to the Constellation Brands’ First Quarter Fiscal Year 2015 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I would now like to turn the call over to Patty

Winklevoss Bitcoin ETF To Trade On Nasdaq Under 'COIN' Symbol

3 Jul ’14

By Nermin Hajdarbegovic

The Winklevoss twins have filed an amended Form S-1 with the SEC. The minor update reveals a few new facts about the Winklevoss exchange traded fund (ETF).

So far Cameron and Tyler Winklevoss have updated their ETF filing four times. The process of registering an ETF is painstakingly slow: the twins originally filed for an investment fund a year ago, on 1st July 2013.

New update reveals ETF symbol

According to the latest filing, shares in the Winklevoss Bitcoin Trust will trade on the Nasdaq OMX under the symbol "COIN".

There are a number of cosmetic changes too, described by the Wall Street Journal as "minor tweaks".

The new S-1 lists a number of new risk factors, mostly revolving around government regulation. The filing also outlines Switzerland’s latest legislative measures and notes Bolivia’s recent central bank ban on bitcoin.

On the technology

Evaluating Caterpillar's Dividend Growth Potential

3 Jul ’14

History has revealed that the best-performing stocks during the previous decades have been those that shelled out ever-increasing cash to shareholders in the form of dividends. This makes a lot of sense, as the strongest dividend growers are often the strongest generators of increasing cash flow. Caterpillar (CAT) is one such gem. Let's evaluate its dividend growth prospects in this article.

But first, let's start with framing this analysis for readers. Most dividend assessments tend to be backward-looking--meaning the evaluation rests more on what the company has done in the past: how long it has raised its dividend, for example. Don't misunderstand. We think analyzing historical trends is important, but investors should understand that for a cash-rich, growing company to raise its dividend by a reasonable amount in each of the past 20, 30 or more years isn't much to write home about.

Imagine, for example, giving your grandson

The Yellen Fed And U.S. Labor Market Dynamics

3 Jul ’14

16 June 2014

All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the authors and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

I. Introduction

To interpret or anticipate Federal Reserve policy actions, one must inhabit the mind of the Fed chairman, and see what he (or she) sees. Under Paul Volcker, money supply data ruled the Fed from the late 1970s through the mid-1980s. Labor market data moved to the fore under Alan Greenspan, then rose to target status under Ben Bernanke. Now, Janet Yellen is elevating discernment of US labor market data to new heights.

In this note, we discuss how to analyze labor markets from the perspective of monetary

Hidden Value In Kimberly-Clark: Interactive Valuation Model

3 Jul ’14

How to Value Kimberly-Clark

Kimberly-Clark (KMB) is focused on being the leading provider of consumer essential products with brands that include Kleenex, Cottonelle, Scott, Huggies, and Pull-Ups. These brands are a trusted part of the lives of nearly one-quarter of the world's population in more than 175 countries according to the company. Firms selling fairly non-discretionary products that get used daily all over the world are able to deliver stable cash flows for investors. Kimberly-Clark has been able to grow its dividends per share every year since 1994 because of these characteristics. In addition, Kimberly-Clark has returned a total value of approximately $10 billion to shareholders in the form of dividends over the last 10 years. This jumps to approximately $19 billion including share repurchases. The table below illustrates these returns over the past ten years:

Based on the consistent nature of dividends shown above, I believe valuing future cash

A. Schulman (SHLM) CEO Joseph Gingo on Q3 2014 Results - Earnings Call Transcript

3 Jul ’14

A. Schulman, Inc. (SHLM)

Q3 2014 Results Earnings Conference Call

July 02, 2014, 10:00 AM ET


Jennifer K. Beeman - Director of Corporate Communications & Investor Relations

Joseph M. Gingo - Chairman, President and Chief Executive Officer

Bernard Rzepka - Chief Operating Officer

Joseph J. Levanduski - Chief Financial Officer


Mike Sison - KeyBanc Capital Markets

Rosemarie Morbelli - Gabelli & Company

Kevin Hocevar - Northcoast Research

Dmitry Silversteyn - Longbow Research

Christopher Butler - Sidoti & Company

Matthew Dodson - JWest, LLC



Good day, ladies and gentlemen. And welcome to the A. Schulman Fiscal 2014 Third Quarter Conference Call. [Operator Instructions].

I would now like to turn the conference over to Ms. Jennifer Beeman. Please proceed.

Jennifer K. Beeman

Thank you, [Gwen]. Good morning, and welcome to A. Schulman's Third Quarter 2014 Conference Call. I'm Jennifer Beeman, Director of Corporate Communications and Investor Relations for

Despite Positives, Twitter Is Not A Recommended Buy For The Near Term

3 Jul ’14

One of the paths to quick growth and expansion is through acquisitions, and there is no better testimony to it than Google (GOOG) (GOOGL). May it be YouTube, Android or any other of Google's famous acquisitions, the company has been a fierce acquirer since its inception. Of late, it seems that Twitter (TWTR) has also embarked on a similar path, as evidenced by its acquisition of TapCommerce, the owner of a leading mobile ad retargeting platform, preceded by the buyout of Namo Media, a native ads platform. Let's analyze if these acquisitions, along with Twitter's current state of affairs make it a buy.

Twitter is on an acquisition spree

In a recent move, Twitter acquired TapCommerce with the objective of enhancing its mobile ads portfolio (Read the full details of the acquisition here). In my last article on Facebook (FB), I pointed out the extreme significance

A Perspective On High-Yield Spreads

3 Jul ’14

By: Heather Rupp, CFA, Director of Research for Peritus Asset Management, the sub-advisor to the AdvisorShares Peritus High Yield ETF (HYLD)

There have been recent headlines about yields in the high-yield market hitting all-time lows. Yes, this is true, but let's put this in some context. First, interest rates have been at or near all-time lows for years, pressuring yields in all fixed income securities as investors search for places to generate returns. Comparatively, we believe the high-yield market still looks very attractive.1

Second, yields are merely one metric to look at as you evaluate "value" in the high-yield market. We believe, especially in this low-yield environment, that spreads (or the difference in yield between the yield-to-worst on the high-yield market and comparable maturity Treasuries) is a better way to monitor levels in the high-yield market. So, let's take a look at historical spreads:2

(click to enlarge)

ChromaDex Looks Interesting, But Highly Speculative

3 Jul ’14

The land of microcap stocks is not my preferred hunting ground; there are way too many hype-driven stories and way too few real diamonds in the rough to make the panning process worthwhile. Even so, ChromaDex (OTCQB:CDXC) looks like a potential exception to the rule worthy of a closer look. I think the company's basic business strategy of pursuing high-potential ingredients for supplements and other nutritional products is a sound one. For better or worse, the pharmaceutical implications of some of these products could capture investor attention and really ignite the stock for stretches at a time.

All of that said, I won't go any further than to say this looks interesting and worthy of further investigation for investors who can take on the risks. ChromaDex will almost certainly need to raise more funds and I don't see how the company can produce long-term value without eventually taking on

GM's Compensation Policy In Perspective

3 Jul ’14

In the wake of failing to fix the decade-old ignition switch defect that caused several deaths, General Motors (GM) is trying to compensate with its no-cap compensation policy. On Monday, super-lawyer Ken Feinberg announced that General Motors will try to compensate the financial and emotional loss suffered by the victims' families in its best possible way, without putting a cap on such compensation. It is noteworthy that the compensation policy was declared a day before the company's latest recall of 8.4 million cars in North America, out of which 7.6 million cars are recalled for ignition defect.

A tale of two tracks

On Tuesday, GM released a 'Final Protocol' documenting guidelines for the compensation to be paid for certain death and physical injury claims in relation to its 'Ignition Switch Recall.' According to the protocol, GM has given the responsibility to process and evaluate claims to Feinberg,

Blue Line Protection Group: The Solution To Legal Marijuana Banking Woes

3 Jul ’14

Imagine water is a legal substance only in your own home, say, in Colorado somewhere. Imagine that outside the confines of your humble abode, water possession is considered a crime. Anyone inside your house, however, is free to buy, sell, and drink water. In such a case, the very first thing you should be concerned about is home security, because you'll need a lot of it. Huge price differentials are created by anti water laws all around you. That means people can make huge profits taking water from you and selling it in places where it is illegal and therefore much more expensive. In such a case, your home has become a target for potential water thieves from all around the country specifically because you have the only legal supply.

Granted, water is an extreme example and I am certainly not comparing cannabis with water, but the economic reasoning

Dow 17K Watch

3 Jul ’14

The financial media is all over the possibility that the DJIA may eclipse the 17,000 level for the first time in the index's history. If it seems like the DJIA just recently crossed 16K, that's because it did less than eight months ago on 11/21/13. In just the last fourteen months, the DJIA surpassed 15,000 and 16,000 for the first time ever. If it seems like 1,000 point milestones are being surpassed with more frequency lately, that's because they have. The chart below shows the first time the DJIA closed above each 1,000 point threshold along with the closing price on that day since it first closed above 2,000 in 1987 (the first close above 1,000 was on 11/14/72). As shown in the chart below, prior to crossing the 15,000 level, the last time the DJIA first eclipsed a 1,000 point level was on 7/19/07 when it closed above 14K