I am an enormous fan of the small banks. The economic and regulatory trends faced by these banks are going to force a lot of smaller institutions around the country to put themselves on the auction block and sell to a larger institution. Those that survive as a standalone bank will have proved their ability to take on the larger banks head-to-head and earn higher returns for their shareholders by stealing business from the too-big-to-fail banks like Bank of America (BAC), Wells Fargo (WFC) and Citigroup (C).
Top Stocks To Buy: SunCoke Energy Partners LP (SXCP)
SunCoke Energy Partners, L.P., incorporated on July 30, 2012, manufactures coke, which is used in the blast furnace production of steel. The Company's sponsor owns the remaining 35% interest in each of Haverhill and Middletown. The Company's sponsor, through its subsidiary, owns a 55.9% partnership interest in the Company owns and controls its general partner which holds a 2% general partner interest in the Company. The Company's cokemaking ovens utilize efficient, modern heat recovery technology designed to combust the coal's volatile components liberated during the cokemaking process and use the resulting heat to create steam or electricity for sale. The Company operates in cokemaking facilities located in Ohio. In September 2013, SunCoke Energy Partners, L.P completed its acquisition of Lakeshore Coal Handling Corporation. In October 2013, the Company acquired Kanawha River Terminals LLC (KRT).
The Company licenses this advanced heat recovery cokemaking process from its sponsor. The Company's sponsor designed, developed and built, and owns and operates five cokemaking facilities in the United States, including Haverhill and Middletown with an aggregate coke production capacity of approximately 4.2 million tons per year and designed and operates one cokemaking facility in Vitoria, Brazil with a coke production capacity of approximately 1.7 million tons per year. Approximately 90% or 17.5 million tons, was for blast furnace steelmaking operations and the remaining 10% was for foundry and other non-steelmaking operations. The Company's cokemaking capacity represents stated capacity for the production of blast furnace coke. The Middletown capacity on a run of oven basis is approximately 578,000 tons per year.
The first phase of the Company's Haverhill facility or Haverhill 1, includes steam generation facilities which use hot flue gas from the cokemaking process to produce steam. The steam is sold to a third-party pursuant to a steam supply and purchase agreement. The Company! 's Middletown facility and the second phase of the Company's Haverhill facility, or Haverhill 2, include cogeneration plants that use the hot flue gas created by the cokemaking process to generate electricity. The electricity is either sold into the regional power market or to AK Steel pursuant to energy sales agreements. The Company has Approximately 400 acres in Franklin Furnace (Scioto County), Ohio, on which the Haverhill cokemaking facility is located and 250 acres in Middletown (Butler County), Ohio near AK Steel�� Middletown Works facility, on which the Middletown cokemaking facility is located.
Advisors' Opinion:- [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut. CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M - [By Ben Levisohn]
We like [SunCoke Energy] due to its growth optionality and believe this business model is well positioned to benefit from the steel industry’s over-leveraged balance sheet, lack of profitability, and historically low asset valuations.�[SunCoke Energy] brings to the table a low cost of capital and proven business model. We estimate that�[SunCoke Energy] has business development opportunities across various industries (including coke making, coal handling and ferrous) which could be worth as much as 3-4x in annual EBITDA as the company�� current asset base. [SunCoke Energy] has very low commodity price exposure relative to steel mills and coal miners.�[SunCoke Energy] also maintains a 55.9% common unit interest and a GP interest in [SunCoke Energy Partners (SXCP)] (the MLP) which allows�[SunCoke Energy] to benefit disproportionately from the MLP�� growth given their incentive distribution rights.
- [By Aimee Duffy]
But this too is starting to shift. If you look at the most-recent IPOs on the New York Stock Exchange, you'll find many corners of the energy industry represented:
Tallgrass Energy Partners�-- Natural gas midstream, debuted May 14 KNOT Offshore Partners (NYSE: KNOP ) -- Shuttle tankers, debuted April 10 SunCoke Energy Partners (NYSE: SXCP ) -- Coal/coke making, debuted Jan. 18 CVR Refining (NYSE: CVRR ) -- Mid-continent refining, debuted Jan. 17There have also been a few MLP-related funds to hit the market this year, including Global X Junior MLP ETF�and Neuberger Berman MLP Income Fund.
Top Defensive Stocks For 2014: Arena Pharmaceuticals Inc.(ARNA)
Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in discovering, developing, and commercializing oral drugs in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. The company?s clinical development programs include lorcaserin that has completed two pivotal Phase III clinical trials for the treatment of weight management, including weight loss and maintenance of weight loss; and APD811, which is under Phase I clinical trial for the treatment of pulmonary arterial hypertension. Its preclinical development programs include APD334, for the treatment of autoimmune diseases, including multiple sclerosis and rheumatoid arthritis. The company also researches and develops cannabinoid, receptor agonists for the treatment of osteoarthritis and pain; and GPR119 agonists for the treatment of type 2 diabetes. Its other development programs, which had completed Phase I clinical trial include APD597 for th e treatment of type II diabetes; APD916 for the treatment of narcolepsy and cataplexy; and APD791 for the treatment of arterial thrombosis. In addition, the company provides manufacturing services. Arena Pharmaceuticals, Inc. was founded in 1997 and is based in San Diego, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of Arena Pharmaceuticals (NASDAQ: ARNA) were down 9.33 percent to $5.25. Credit Suisse lowered the price target on the stock from $5 to $4. - [By Brian Orelli]
After getting rejected once, Arena Pharmaceuticals' (NASDAQ: ARNA ) Belviq and VIVUS'� (NASDAQ: VVUS ) Qsymia were both approved by the FDA last year. And the FDA seems open to approving a third drug, Orexigen's (NASDAQ: OREX ) Contrave.
Top Defensive Stocks For 2014: MedCAREERS Group Inc (MCGI)
MedCareers Group, Inc., incorporated on December 30, 2004, focus is to develop and build value through its wholly owned subsidiary Nurses Lounge (www.nurseslounge.com), an online professional network and communication source for nurses and organizations connected to the nursing community. On August 10, 2010, MedCareers acquired the workabroad.com Website from Steve Elisberg (Workabroad.com Website).
The Nurses Lounge is a professional network for nursing professionals providing relevant content and information and professional networking. Nurses can subscribe to Lounges created by nursing schools, nurse associations, employers, specialties and more to receive email updates of relevant news, events and other info. Professional networking is a place for nurses to connect with colleagues and network on a professional level.
Advisors' Opinion:- [By Peter Graham]
Last Friday, small cap stocks MedCAREERS Group Inc (OTCMKTS: MCGI), USmart Mobile Device Inc (OTCMKTS: UMDI) and Drinks Americas Holdings, Ltd (OTCMKTS: DKAM) were all over the place with the first two sinking 54% and 48.05%, respectively, while the last one rose 10.81%. It should be mentioned that all three small cap stocks have been the subject of paid promotions albeit none of these stocks have been over promoted. So where can investors and traders expect these stocks to head this week? Here is a quick look at what you might expect:
MedCAREERS Group Inc (OTCMKTS: MCGI) Gets Additional Commitments to Join Its SubsidiarySmall cap MedCAREERS Group aims to develop and build value through its wholly-owned subsidiary Nurses Lounge, Inc., an online professional network and communication source for nurses that offers a 21st century solution to recruitment and information that cannot be accomplished on a static nursing school or association website. On Friday, MedCAREERS Group sank 54% to $0.0575 for a market cap of $3.03 million plus MCGI is up 161.4% since the start of the year and down 93.9% over the past five years according to Google Finance.
Top Defensive Stocks For 2014: Stoneridge Inc.(SRI)
Stoneridge, Inc., together with its subsidiaries, engages in the design and manufacture of engineered electrical and electronic components, modules, and systems for the medium and heavy-duty truck, automotive, agricultural, and off-highway vehicle markets primarily in North America and Europe. The company operates in two segments, Electronics and Control Devices. The Electronics segment produces electronic instrument clusters, electronic control units, and driver information systems, as well as electrical distribution systems, principally wiring harnesses and connectors for electrical power and signal distribution. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. In addition, this segment?s power distribution systems regulate, coordinate, and direct the operation of the electrical system within a vehicle. The Control Devices segment designs and manufactures products that monitor, measure, or activate a specific function within the vehicle. This segment?s product lines include sensors, which are employed in a range of vehicle systems, such as the emissions, safety, power train, braking, climate control, steering, and suspension systems; switches that transmit signal to activate or deactivate selected functions; and electromechanical actuator products, which enable original equipment manufacturers to deploy power functions in a vehicle. Stoneridge, Inc. was founded in 1965 and is headquartered in Warren, Ohio.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Stoneridge (NYSE: SRI ) , whose recent revenue and earnings are plotted below.
Top Defensive Stocks For 2014: A. Schulman Inc.(SHLM)
A. Schulman, Inc. supplies plastic compounds and resins for packaging, consumer products, industrial, and automotive applications. The company offers additive compounds, custom color concentrates for film and molding, carbon black color concentrates, white color concentrates, additive compounds for polyester resins and special pearl effects, antistatic concentrates, and masterbatch for the production of synthetic paper. Its products also include engineered plastics, such as thermoplastic elastomers and vulcanizates, filled and unfilled nylon and PBT compounds, nylon/ABS alloys, formulated ionomer compounds, thermoplastic ionomer resins, flame-retardant thermoplastic compounds and concentrates, polypropylene, polyethylene, EVA compounds, thermoplastic olefins, flexible thermoplastic PVC compounds, high-quality PVC compounds, PVC-based thermoplastic elastomers, and low-gloss PVC thermoplastic elastomers for industrial packaging, appliances, electrical connectors, power tools , recreational items, and lawn and garden equipments. In addition, the company provides custom color and specialty compound powders, rotational molding process compounds, cross-linkable resin used in rotational molding, high heat-distortion temperature materials, and thermoplastic powders, as well as provides jet milling services used for products requiring very fine particle size, such as additives for printing ink, adhesives, waxes, and cosmetics; and cryogenic milling services for heat sensitive materials. Further, it buys, repackages, and re-sells polymers for various processing types comprising injection molding, blow molding, thermoforming, and extrusion, as well as provides tolling services. The company operates in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. A. Schulman, Inc. was founded in 1928 and is headquartered in Akron, Ohio.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of A. Schulman (NASDAQ: SHLM ) were getting squashed today, falling as much as 14% after the plastics-maker turned in a subpar quarter.
- [By Garrett Cook]
Basic materials sector was the top gainer in Wednesday’s trading. Top gainers in the sector included A. Schulman (NASDAQ: SHLM), up 5.2 percent, and Cliffs Natural Resources (NYSE: CLF), up 5.8 percent.
- [By Ben Levisohn]
A. Shulman (SHLM) has gained 6.4% to $38.65 after the plastic maker beat earnings forecasts and lifted its full-year guidance.
Gilead Sciences (GILD) has dropped 1% to $71.48 on reports that Express Scripts (ESRX) wants the biotech giant to lower the price of its hepatitis C drug, Sovaldi. Express Scripts has gained 0.6% to $73.16.
- [By Maria Armental var popups = dojo.query(".socialByline .popC"); popups.forEach]
A. Schulman Inc.(SHLM) agreed to buy a majority of Ferro Corp.'s(FOE) specialty plastics business for $91 million in cash, an effort to expand its geographic footprint.
Top Defensive Stocks For 2014: USA Mobility Inc.(USMO)
USA Mobility, Inc. provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. The company provides one-way and two-way messaging services. One-way messaging consists of numeric and alphanumeric messaging services. The numeric messaging services enable subscribers to receive messages that are composed entirely of numbers, such as a phone number. The alphanumeric messages may include numbers and letters which enable subscribers to receive text messages. Its two-way messaging services enable subscribers to send and receive messages to and from other wireless messaging devices, including pagers, personal digital assistants and personal computers. USA Mobility also offers voice mail, personalized greeting, message storage and retrieval, and equipment loss and/or maintenance protection to its one-way and two-way messaging subscribers. In addition, the company provides mobile voice and data services t hrough third party providers, which include BlackBerry devices and global positioning system location applications. Further, it offers machine to machine telemetry solutions for various applications that include asset tracking, utility meter reading, and other remote device monitoring applications. USA Mobility serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and service organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company is based in Springfield, Virginia.
Advisors' Opinion:- [By Jake L'Ecuyer]
Among the sector stocks, 8x8 (NASDAQ: EGHT) was down more than 2.2 percent, while USA Mobility (NASDAQ: USMO) tumbled around 2.5 percent.
Top Headline
Tiffany & Co (NYSE: TIF) swung to a loss in the fourth quarter. Tiffany posted a quarterly loss of $103.6 million, or $0.81 per share, versus a year-ago profit of $179.6 million, or $1.42 per share. Excluding special items, it earned $1.47 per share. Its revenue climbed to $1.30 billion versus $1.24 billion. However, analysts were estimating earnings of $1.51 per share on revenue of $1.31 billion. For fiscal year 2014, Tiffany projects earnings of $4.05 to $4.15 per share, versus analysts' estimates of $4.27 per share. - [By Sally Jones]
USA Mobility Inc. (USMO): ReducedUp 26% over 12 months, USA Mobility has a market cap of $307.81 million; its shares were traded at around $14.22 with a P/E ratio of 13.10. The dividend yield of USMO is 3.52%.
Top Defensive Stocks For 2014: Mistras Group Inc (MG)
Mistras Group, Inc. provides technology-enabled asset protection solutions to evaluate the structural integrity and reliability of critical energy, industrial, and public infrastructure worldwide. It provides traditional non-destructive testing (NDT) services; advanced NDT services; and mechanical integrity services. The company also offers software solutions, including Plant Condition Monitoring Software and Systems, an enterprise software that allows its customers for the warehousing and analysis of data. In addition, it provides Advanced Data Analysis Pattern Recognition and Neural Networks software, which enables acoustic emission (AE) experts to develop automated remote monitoring systems; AE Software Platform, a windows based real time application software; Loose Parts Monitoring Software program for monitoring, detecting, and evaluating metallic loose parts in nuclear reactor coolant systems; and Automated UT and Imaging Analysis Software for analyzing ultrasonic in spection data, and visualizing and identifying the location and size of flaws. Further, the company�s technology packages include TANKPAC for tank inspections; POWERPAC for monitoring discharges in critical power grid transformers; and Acoustic Combustion Turbine Monitoring System, an on-line system to detect stator blade cracks in gas turbines. Additionally, it offers digital radiographic systems to solve specific industrial problems; AE sensors, instruments, and turn-key systems, as well as leak monitoring and detection systems; ultrasonic equipment; vibration sensing products; and on-line monitoring services. Mistras Group, Inc. was founded in 1978 and is headquartered in Princeton Junction, New Jersey.
Advisors' Opinion:- [By Wallace Witkowski]
Stock in Mistras Group Inc. (MG) �rose 6.9% to $23.99 on light volume after the company raised its revenue outlook for the year to a range of $590 million to $615 million. Analysts expected $592.1 million.
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