Lululemon athletica (LULU) was once the darling of Wall Street investors and soccer mom’s everywhere but a customer service fiasco surrounding its most popular yoga pants, a change in CEO and a warning about fourth quarter earnings have left shares reeling. This Zacks Rank #5 (Strong Sell) is expected to see just 2.4% earnings growth in fiscal 2013.
Lululemon operates retail stores which sell yoga-inspired clothes and accessories in Canada, the U.S. and Europe. It sells one of the most popular women’s yoga pants on the market.
Warned on the Fourth QuarterOn Jan 13, lululemon surprised Wall Street by warning on its fourth quarter which doesn’t end until Feb 2. Comparable-store sales are expected to be in the negative low-to-mid single digit range. Previously, the company had guided comparable-store sales are likely being flat.
Top US Companies To Watch In Right Now: Dril-Quip Inc. (DRQ)
Dril-Quip, Inc. designs, manufactures, sells, and services engineered offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. It operates in three segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. The company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, and diverters. Its products are used for drilling and production of oil and gas wells on offshore platforms; tension leg platforms, which are floating production platforms connected to the ocean floor via vertical mooring tethers; Spars, a floating cylindrical structure; and floating production, storage, and offloading monohull moored vessels, as well as to explore for oil and gas from offshore drillin g rigs, such as floating rigs and jack-up rigs. The company also provides services, including technical advisory services, rework and reconditioning services, and rental of running tools for use in the installation and retrieval of its products. It primarily serves integrated, independent, and foreign national oil and gas companies, as well as offshore drilling contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Michael Fitzsimmons]
General Electric's (GE) Oil & Gas division is on fire and growing much faster than the rest of the company. Yet it is such a small part of the company, its valuation is being diluted by GE's other businesses. However, the company has a cash hoard and CEO Jeff Immelt has spoken frequently about his desire to grow the industrial base while reducing the size of GE Capital. As a result, the best way to invest in GE Oil's & Gas business may be to invest companies which GE is likely to takeover. Two likely candidates are the Dresser Rand Corp. (DRC) and Dril-Quip (DRQ).
- [By Jeff Williams]
For investors looking for a small-cap company in a sector poised for extensive growth, Dril-Quip Inc. (DRQ) is a growth-oriented, offshore oil and gas service company with many catalysts that will increase shareholder value.
- [By Aaron Levitt]
It takes an awful lot of muscle and technological know-how to frack and drill unconventional wells. So the oil service industry is poised to continue churning out hefty profits in years to come. That fact has benefited mid-cap maker of drill-bits, pipes and other rig equipment Dril-Quip (DRQ).
- [By Jake L'Ecuyer]
Dril-Quip (NYSE: DRQ) was also on the rise, gaining 12.27 percent to $107.68 after the company's fourth quarter report impressed the street.
Equities Trading DOWN
Shares of Endologix (NASDAQ: ELGX) were down 24.85 percent to $13.43 on lowered guidance, analyst downgrades. Oppenheimer downgraded the stock from Outperform to Market Perform and cut the price target from $20.00 to $16.00.
Top 5 Managed Healthcare Companies To Watch For 2015: United States Brent Oil Fund LP (BNO)
United States Brent Oil Fund, LP (USBO) is a commodity pool. USBO is focused on issuing units that may be purchased and sold on the NYSE Arca, Inc. The investment objective of USBO is for the daily changes in percentage terms of its units��per unit net asset value (NAV) to reflect the daily changes in percentage terms of the spot price of Brent crude oil, as measured by the daily changes in the price of the futures contract for Brent crude oil traded on the ICE Futures Exchange (the ICE Futures).
The investment portfolio of USBO will consist primarily of investments in futures contracts for crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the ICE Futures, New York Mercantile Exchange (the NYMEX) or other United States and foreign exchanges (collectively, Futures Contracts). USBO may also take positions in other crude oil-related investments, such as cash-settled options on Futures Contracts, forward contracts for oil, cleared swap contracts and non-exchange traded (over-the-counter) transactions that are based on the price of crude oil, other petroleum-based fuels, Futures Contracts and indices based on the foregoing (collectively, Other Crude Oil-Related Investments).
Advisors' Opinion:- [By David Fabian]
Oil prices were once again in the spotlight for another round of heavy losses. The United States Brent Oil Fund, LP (NYSE: BNO) lost nearly 11 percent this week as this widely traded commodity fell to new 52-week lows. BNO tracks near-month Brent crude oil futures contracts traded on the ICE Futures Exchange.
- [By Dr. Kent Moors]
It's time to pull back a bit on exchange-traded fund (ETF) holdings allowing moves playing the WTI-Brent crude pricing spread. I have suggested previously the two primary plays here are PowerShares DB Energy (NYSE Arca: DBE) and United States Brent Oil Fund (NYSE Arca: BNO).
- [By Paul Ausick]
The United States Brent Oil ETF (NYSEMKT: BNO) is up less than 0.1%, at $44.38 in a 52-week range of $36.88 to $45.05. The annual high was also set today.
Top 5 Managed Healthcare Companies To Watch For 2015: Parker Drilling Co (PAD)
Parker Drilling Company (Parker), incorporated on August 4, 1970, is a provider of contract drilling and drilling-related services. The Company operates in six segments: Rental Tools, U.S. Barge Drilling, U.S. Drilling, International Drilling, Technical Services and Construction Contract. During year ended December 31, 2012, the Company operated in 12 countries. The Company has operated in over 50 foreign countries and the United States. In April 2013, the Company announced the acquisition of International Tubular Services Limited and certain affiliates (ITS), subsidiaries of ITS Tubular Services (Holdings) Limited.
Rental Tools Business
The Company provide premium rental tools for land and offshore oil and natural gas drilling and provide equipment used for drilling, workover and production applications, such as drill pipe, heavy-weight drill pipe, tubing, high-torque connections, blow-out preventers (BOPs) and drill collars. The Company also hold an inventory of rental tools and provide service to its customers from locations in Louisiana, Texas, Wyoming, North Dakota and West Virginia.
U.S. Barge Drilling Business
The Company�� U.S. Gulf of Mexico barge rig fleet is marketed barge fleet in the GOM region, with rigs ranging from 1,000 to 3,000 horsepower with drilling depth capabilities ranging from 13,000 to over 30,000 feet. The Company�� rigs drill for oil, natural gas, and a combination of oil and natural gas in the shallow waters in and along the inland waterways and coasts of Louisiana, Alabama and Texas.
U.S. Drilling Business
The Company�� U.S. Drilling segment primarily consists of two new-design Arctic Alaska Drilling Unit (AADU) land rigs. In addition to the two AADU rigs, the Company has one land rig at its facility in New Iberia, Louisiana.
International Drilling Business
The Company�� international drilling business includes operations related to Parker-owned and operated ri! gs as well as customer-owned rigs. In addition, it perform drilling-related activities for operators who own their drilling rigs and who choose to utilize its drilling experience and technical expertise to perform services on a contracted basis, including Operations and Maintenance (O&M) work, and other project management services (such as labor, maintenance, and logistics).
Technical Services Business
The Company�� technical services business primarily includes its engagement in concept development, pre-FEED (Front End Engineering Design), Front End Engineering Design (FEED) and Engineering, Procurement, Construction and Installation (EPCI) projects. During the EPCI phase, it focuses primarily on the drilling systems engineering, procurement, commissioning and installation and provide customer support during construction. As of December 31, 2012, it provides these services on the Berkut platform project for Exxon Neftegas Limited (ENL).
Construction Contract Business
The Company�� construction contract segment includes only the BP-owned Liberty extended-reach drilling rig construction project. Under the consulting services agreement, it assisted BP in a review of the rig�� design, the creation of a new statement of requirements for the rig, and the transition of documentation and materials to BP.
Advisors' Opinion:- [By James Oberweis]
Among our latest small-cap recommendations is a medical device company focused on developing minimally invasive treatment solutions for vascular disease, including peripheral artery disease (PAD) and coronary artery disease (CAD), explains Jim Oberweis, Editor of The Oberweis Report.
Top 5 Managed Healthcare Companies To Watch For 2015: Community Trust Bancorp Inc.(CTBI)
Community Trust Bancorp, Inc. operates as the holding company for Community Trust Bank, Inc. that provides various banking products and services. It accepts various deposit product that include checking accounts, regular and term savings accounts and savings certificates, commercial demand deposit accounts, individual retirement accounts and Keogh plans, non interest bearing deposits, NOW accounts, money market deposits, savings accounts, and certificates of deposit and other time deposits. The company?s loan portfolio comprises residential and commercial real estate loans; commercial loans; commercial, construction, mortgage, and personal loans; and lease-financing, lines of credit, revolving lines of credit, term loans, and other specialized loans, including asset-based financing. It also provides full service securities brokerage services; annuity and life insurance products; trust services; debit cards; cash management services to corporate and individual customers; l etters of credit; safe deposit boxes; and funds transfer services. In addition, the company acts as a trustee of personal trusts, an executor of estates, trustee for employee benefit trusts, registrar, transfer agent, paying agent for bond and stock issues; and depositor for securities, as well as provides full service brokerage services. Community Trust operates 80 banking locations in eastern, northeastern, central, and south central Kentucky; southern West Virginia; and northeastern Tennessee, as well as 5 trust offices across Kentucky. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.
Advisors' Opinion:- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
GWW is trading at a premium to all four valuations above. The stock is trading at a 10.0% premium to its calculated fair value of $219.95. GWW did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
GWW earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. GWW earned a Star for having an acceptable score in at least two of the four Key Metrics measured.
Rolling 4-yr Div. > 15% means that dividends grew on average in excess of 15% for each consecutive 4 year period over the last 10 years (2003-2006, 2004-2007, 2005-2008, etc.) I consider this a key metric since dividends will double every 5 years if they grow by 15%. The company has paid a cash dividend to shareholders every year since 1965 and has increased its dividend payments for 42 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked
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