The second quarter wasn't a blowout for Noble (NYSE: NE ) but it was an incremental improvement without the help of new drilling rigs to boost results. It really sets a solid foundation until new rigs commanding high dayrates will begin contributing to revenue.
Overall, second-quarter revenue was up 13%, to $1.02 billion, assisted by an $18-million contract cancellation fee. Net income improved 10%, to $176.6 million, or $0.69 per share, although results were flat when the cancellation fee was included.�
The big improvement was higher utilization of drillships and jackups during the quarter. But if you're buying Noble,or any deepwater driller, you have to have an eye on growth.
An eye on the future
Noble took shipment of two ultra-deepwater drillships this quarter, and they'll begin contributing to revenue later this year. There will also be one more ultra-deepwater rig delivered this year, and two more next year, and to add to the impact, the company has contracts signed for all of its newbuilds, and a backlog of $16 billion.
Top 10 Gas Utility Companies To Own In Right Now: CPFL Energia S.A.(CPL)
CPFL Energia S.A., through its subsidiaries, engages in the generation, distribution, and sale of electricity in Brazil. It generates electricity through hydroelectric, thermal, biomass, and wind power plants. The company also involves in the provision of energy commercialization, consultancy, and advisory services to agents in the energy sector; manufacture, commercialization, rental, and maintenance of electromechanical equipment; and provision of administrative services, as well as telephone answering services. It has an installed generating capacity of 2,309 MW. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil.
Advisors' Opinion:- [By Selena Maranjian]
Brazilian electricity giant CPFL Energia S.A. (NYSE: CPL ) sank 20%, and recently yielded 5.9%. Its long-term debt has been rising, largely due to acquisitions, and its free cash flow has been shrinking (and even turning negative�recently). But it has been investing heavily in alternative energies, and it serves a massive and growing market in Brazil. The country's growth has been slower than many would like, but that won't last forever.
Top 10 Gas Utility Companies To Own In Right Now: Winnebago Industries Inc.(WGO)
Winnebago Industries, Inc. manufactures and sells recreation vehicles primarily for leisure travel and outdoor recreation activities. The company offers motor homes, which are self-propelled mobile dwellings that provide living accommodations for approximately seven persons and include kitchen, dining, sleeping, and bath areas, as well as a lounge; and optional equipment accessories, such as generators, home theater systems, king-size beds, upholstery, and interior equipment. It manufactures motor homes constructed directly on medium- and heavy-duty truck chassis, which include engine and drivetrain components; and on van-type chassis onto which the motor home manufacturer constructs a living area with access to the driver's compartment under the Winnebago and Itasca brand names, as well as panel-type vans with sleeping, kitchen, and/or toilet facilities under the Era brand name. The company also produces original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. Winnebago Industries markets its motor homes through independent dealers primarily in the United States and Canada. The company was founded in 1958 and is headquartered in Forest City, Iowa.
Advisors' Opinion:- [By Grace L. Williams]
Recreational vehicle maker Winnebago Industries (WGO), which makes, you know, Winnebagos, is trucking today after reporting strong revenue and increased demand in its fourth quarter.
APFor the period ended Aug. 31, Winnebago reported profit of $10.6 million, or 38 cents a share, down from $40.9 million, or $1.41 a share, a year earlier, while sales rose to $214.2 million in the quarter. Analysts polled by Thomson Reuters recently predicted earnings of 28 cents a share and sales of $206 million.
Looking at the solid quarter and optimistic forecasts, Citigroup analyst Gregory Badishkanian raised estimates after noting several positive factors at the company including the current backlogs, which more than doubled, and dealer inventories, which were up 38%. He writes:
The company highlighted two issues that appear to be diminishing: 1) towables division was dilutive for the year, but headed in the right direction with a breakeven quarter 2) shortage in Class A Gas chassis, though the issue should be resolved by mid-winter…
Given strong margin and retail demand trends, we��e raising our 2014 and 2015 estimates by 26 cents each. We introduce our 2016 estimate of $ 1.60.
Shares of Winnebago have gained 4.4% to $28.47 today at 3pm. Thor Industries (THO), which also makes recreational vehicles, has ticked up 0.1% to $57.56, Drew Industries (DW) has risen 0.3% to $48.74, Arctic Cat (ACAT) has advanced 1% to $59.87 and Polaris Industries (PII) has fallen 0.3% to $132.08.
- [By David Sterman]
I took a close look at all of the companies that appeared in the first part of this series, and there were some great companies in the mix. If price were no object, I'd be a huge fan of:
Oceaneering (NYSE: OII), which is prospering form the ongoing trends toward undersea naval warfare and undersea oil drilling. Oceaneering is poised to grow at a sustained double-digit pace, which is something few other defense contractors can say. Cree (Nasdaq: CREE): LED lighting is a revolutionary game-changer, and Cree's heavy emphasis on R&D is leading the charge towards ever-lower prices for these low-energy light sources that also have remarkable longevity compared to regular bulbs. Still, profit margin gains may be tough in a very competitive environment. Polaris Industries (NYSE: PII): If Winnebago's (NYSE: WGO) recreational vehicles are suitable for retirees, Polaris has become the go-to name for activity-oriented vehicles. Notably, it has a revenue base that is four times larger than Winnebago as well. If S&P wants to position for future demographic trends, then Polaris is a great choice.I love these companies, but I don't love their stock prices, and I'd prefer to wait for some sort of pullback before singing their praises. That said, there are two investment ideas that hold great appeal on their own. If they get added to the S&P 500, then they are also set up for a timely trade.
Hot Companies To Invest In 2014: MONDI PLC ORD EUR0.20 WI(MNDI.L)
Mondi plc operates as an international paper and packaging company worldwide. It principally engages in the manufacture and sale of packaging paper, converted packaging products, and uncoated fine paper (UFP) products. The company produces hardwood and softwood pulp; UFP under the Color Copy, MAESTRO, and IQ, as well as the Russian Snegurochka and South African ROTATRIM brands; virgin and recycled containerboards for corrugated packaging applications; and corrugated packaging products, including conventional boxes and trays, point-of-sale displays, and shelf-ready and heavy-duty packaging. It also provides kraft papers used in supermarket shelves, and specialized packaging and heavy-duty industrial applications; industrial bags used in packaging cement, chemicals, seeds, animal feed, flour, milk powder, automotive parts, and organic bio-waste; extrusion coating products, release liners, and consumer packaging products; newsprint and telephone directory paper products; and carbon neutral office paper. In addition, the company offers films and laminate products that consist of printed laminates and barrier materials, consumer films, industrial films, and biodegradable films; and consumer bags, such as pouches, reclosable bags, paper-based bags, labels, and microwaveable packaging products. Further, it provides application engineering services, consisting of pre and post-sales technical consultancy, and training services. Mondi plc serves automotive, building, and construction; chemicals and dangerous goods; farming and agriculture; food; industrial paper and packaging; medical and pharmaceutical; office and printing paper; pet food; photographic and graphic; and toiletries and hygiene industries. The company was founded in 1967 and is based in Addlestone, the United Kingdom.
Top 10 Gas Utility Companies To Own In Right Now: PURICORE PLC ORD GBP0.01(PURI.L)
PuriCore plc, a water-based clean technology company, engages in developing and commercializing proprietary products that kill pathogens. It offers Sterilox food safety systems that are used by retail supermarkets to keep produce, cut fruit, floral, and seafood fresh, as well as to address cross-contamination; and FloraFresh Systems to keep flowers fresher for leading supermarket and floral chains. The company also provides Vashe wound therapy, an FDA-cleared medical device used for moistening, irrigating, cleaning, and debriding acute and chronic wounds, including stage I through IV pressure ulcers, stasis ulcers, diabetic ulcers, post-surgical wounds, first- and second-degree burns, abrasions, and minor irritations of the skin. In addition, it offers Aqualox water treatment systems that produce hypochlorous acid for water and wastewater disinfection, as well as for killing E.coli, Legionella, and other harmful micro-organisms; Sterilox Biosafety system that rapidly disin fects surfaces to protect against the spread of infectious pathogens; and Sterilox dental systems that generate solutions to decontaminate and disinfect hard surfaces and inside dental unit water lines ensuring a clean environment for dental professionals, patients, and staff. Further, the company?s products address various public health threats of MRSA, M.tuberculosis, Legionella, E.coli, HIV, poliovirus, Helicobacter pylori, norovirus, Salmonella, and animal and human influenza virus. PuriCore plc is headquartered in Malvern, Pennsylvania.
Top 10 Gas Utility Companies To Own In Right Now: Lon & Assoc Props(LAS.L)
London & Associated Properties PLC, along with its subsidiaries, engages in the property investment and development in the United Kingdom. It holds a portfolio of retail properties, including Antiquarius and Chenil House in Chelsea; King Edward Court, a shopping centre in Windsor; Kings square in west Bromwich; Market Row and Brixton Village in London; Orchard Square shopping centre in Sheffield; Saxon Square, a medium sized building with residential upper parts to the rear of shopping centre; and the Mall and adjacent buildings in Islington. The company is based in London, the United Kingdom.
Top 10 Gas Utility Companies To Own In Right Now: Golden Dory Resources Corp (GDR.V)
Golden Dory Resources Corp., an exploration stage company, engages in the exploration of mineral properties in North America. The company primarily explores for gold, uranium, and lithium/rare metals. It holds interest in the Huxter Lane-Brady project located in Newfoundland and Labrador, Canada; and Long Canyon (Pequop south) and Reef properties in the state of Nevada, the United States. The company also focuses on its earlier stage gold, uranium, and base metal properties in Newfoundland; and lithium/rare metals projects in Ontario. Golden Dory Resources Corp. is based in Gander, Canada.
Top 10 Gas Utility Companies To Own In Right Now: Mayen Minerals Ltd. (MYM.V)
Rift Basin Resources Corp. operates as an independent, international oil and gas exploration and development company that focus on advanced-stage exploration and near-production opportunities in Africa and the Middle East. The company has a strategic alliance with Gulfsands Petroleum plc for the acquisition of petroleum projects in Tunisia and rest of the Middle East, and north Africa region. It also has the right to earn a 15% participating interest in the Chorbane exploration permit located in Tunisia The company was formerly known as Mayen Minerals Ltd. and changed its name to Rift Basin Resources Corp. in September 2012. Rift Basin Resources Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.
Top 10 Gas Utility Companies To Own In Right Now: Sandstorm Gold Ltd (SAND)
Sandstorm Gold Ltd. (Sandstorm Gold), formerly Sandstorm Resources Ltd., is a gold streaming company. The Company provides financing to gold mining companies that are looking for capital and in return, receives a gold streaming agreement. It is a non-operating gold mining company with seven gold streams in the portfolio, five of which are producing gold. The Company�� projects include the Aurizona Gold project, the Santa Elena project, the Summit Mine project, the Ming Mine project, the Black Fox Mine project, Bracemac-McLeod project and the Bachelor Lake Mine. It holds 17% interest in the mine gold production from Aurizona. Santa Elena Project, in which the Company holds 20% interest. It holds 12% interest in the mine gold production from Black fox mine project. The Summit Mine project, in which it has 50% interest, 25% interest in Ming mine project and 17.5% interest in Bracemac-McLeod project. Advisors' Opinion:- [By Rich Duprey]
Still a glittering opportunity?
While virtually every name in the precious metal fell yesterday in line with gold's percentage drop, or worse, gold streamer Sandstorm Gold (NYSEMKT: SAND ) really took it on the chin, falling more than 8% despite reporting a few days earlier a sharp jump in proven and probable reserves at its Aurizona Gold Mine in Brazil. It represents one of the streamer's best opportunities for the future, as it has the opportunity to buy 17% of the gold produced for the life of mine at $400 an ounce on an inflation-adjusted basis. - [By Tony Daltorio]
The chief executive officers (CEOs) of both Silver Wheaton (NYSE: SLW) and Sandstorm Gold (NYSE MKT: SAND) told the Forum now was a great time to bolster their gold streams at a nice discount in price.
- [By The Investment Doctor]
Another, less likely possibility to raise equity is through selling a part of the precious metals in a streaming deal. I can imagine Sandstorm Gold (SAND) and Silver Wheaton (SLW) would be very interested in a substantial precious metals streaming agreement. At the current gold and silver prices NGEX wouldn't even have to sell its entire precious metals production under a streaming arrangement.
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