The Department of Defense handed out 20 new defense contracts�on Monday, awarding $717.7 million in total. Surprisingly, one single firm captured 20% of the contracts on offer: Lockheed Martin (NYSE: LMT ) .
In a series of four wins, Lockheed secured contracts worth:
$111.5 million: for the firm's Mission Systems and Training (MST) division, in the form of a cost-plus-incentive-fee, cost-only, firm-fixed-price contract for the development, integration and production of AN/SQQ-89A(V)15 Surface Ship Undersea Warfare Systems.�This system enables a surface warship to search, detect, classify, localize and track undersea contacts, and to engage and evade submarines, mine-like small objects and torpedo threats.�Lockheed will perform the work under a foreign military sales contract benefiting the Japan Self-Defense Force with a May 2014 completion date. $29.7 million: also for MST, in the form of a sole-source, cost-plus-incentive-fee/cost-plus-award-fee contract modification for post-certification support of the Aegis Ballistic Missile Defense baselines 4.0.X, 5.0 and 5.0 capability upgrade -- a project to turn Aegis into a ballistic missile defense system. This contract extension runs through Dec. 2014. $8.2 million: for the firm's Missile and Fire Control division, in the form of a cost-plus-fixed-fee contract to supply Affordable Phased Array Sensor Systems to the U.S. Army. These sensors are specially designed to detect incoming missiles, helicopters, and unmanned aerial vehicles. $48.2 million: in a contract award shared among Lockheed Martin Services, ABM's (NYSE: ABM ) Government Services unit, LB&B Associates, J&J Maintenance, and EMCOR (NASDAQ: EMKR ) Government Services. This contract to provide engineering services to the U.S. Army Corps of Engineers is actually a modification of a previously awarded firm-fixed-price, multiple-award, task-order contract, and raises the ceiling value of the initial contract.Hot Rising Stocks To Invest In Right Now: LDK Solar Co. Ltd.(LDK)
LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.
Advisors' Opinion:- [By Dan Caplinger]
Next Tuesday, LDK Solar (NYSE: LDK ) will release its latest quarterly results. Lately, investors have had to wonder whether the Chinese solar company will be able to continue operating, as LDK is one of many solar companies in the emerging-market nation going through a cash crunch due to large losses.
Hot Rising Stocks To Invest In Right Now: American Eagle Outfitters Inc (AEO)
American Eagle Outfitters, Inc. (AEO, Inc) is a specialty retailer that operates in the United Sates and Canada, and online at ae.com. AEO, Inc operates under the American Eagle (AE), aerie by American Eagle (aerie), and 77kids by american eagle (77kids) brands. Through the Company�� family of brands, it offers clothing, accessories and personal care products. As of January 28, 2012, the Company operated 1,090 stores in the United States and Canada under the American Eagle Outfitters, aerie and 77kids brands. The Company also had 21 franchised stores operated by its franchise partners in 10 countries. During the fiscal year ended December 31, 2011, the Company opened 33 new stores. As of December 31, 2011, it operated in all 50 states, Puerto Rico and Canada. During fiscal 2011, the Company remodeled and refurbished a total of 106 AE stores.
AE Brand
The American Eagle Outfitters brand targets 15 to 25-year old men and women. Denim is the cornerstone of the American Eagle product assortment, which is complemented by other categories including sweaters, graphic t-shirts, fleece, outerwear and accessories. As of January 28, 2012, the Company operated 911 American Eagle Outfitters stores. During fiscal 2011, it opened 11 AE stores.
aerie by American Eagle
The Company�� aerie is a collection of Dormwear, intimates and personal care products for the AE girl. The collection is available in aerie stores throughout the United States and Canada, online at aerie.com and at select American Eagle stores. As of January 28, 2012, AEO, Inc operated 158 aerie stores. During fiscal 2011, it opened 10 aerie stores.
77kids by american eagle
77kids offers clothing and accessories for kid�� ages 2 to 14 and babies under the brand name little77TM. As of January 28, 2012, the Company operated 21 77kids stores. All 77kids clothing is backed by the brand�� 77wash and 77soft. During fiscal 2011, AEO, Inc opened 12 77kids stores.
AEO Direct
The Company's online business, AEO Direct, ships to 77 countries worldwide. The Company sells merchandise via its e-commerce operations, ae.com, aerie.com and 77kids.com, which are extensions of the lifestyle that it conveys in its stores. As of December 31, 2011, AEO Direct shipped to 77 countries worldwide. In addition to purchasing items online, customers can experience AEO Direct in-store through Store-to-Door. Store-to-Door enables store associates to sell any item available online to an in-store customer in a single transaction. The Company accepts PayPal and Bill Me Later as a means of payment from its ae.com, aerie.com and 77kids.com customers.
Advisors' Opinion:- [By Douglas A. McIntyre]
The Old Navy decision is not a direct threat to full service retailers, but for niche clothiers, particularly targeting young people, the sweepstakes could trigger problems. Shares of Abercrombie & Fitch (NYSE: ANF) have already been bludgeoned due to a forecast of�falling sales and a plan to close stores. Its shares trade at $33, near the 52-week low and well off the 52-week high of just above $55.� And, smaller rival American Eagle Outfitters�(NYSE:AEO) recently revised its earnings forecasts higher for the current quarter due to�better margins. Its shares, however, remain near one year lows.
- [By Lee Jackson]
American Eagle Outfitters Inc. (NYSE: AEO) has an eye-popping 25% IRR. The company operates as an apparel and accessories retailer in the United States and Canada. The company’s retail stores offer denims, sweaters, fleece, outerwear, graphic T-shirts, footwear and accessories for 15- to 25-year-old men and women under the American Eagle Outfitters brand name, as well as intimates and personal care products for girls under the Aerie brand name. As of February 2, 2013, the company operated 893 American Eagle Outfitters stores and 151 Aerie stand-alone stores, as well as 49 franchised stores in 13 countries. American Eagle common shares currently trade at a 37% discount to its conservatively estimated private market value, which represents significant upside of 55%. The consensus price target for the stock is $16, and the high target is posted at $20. The stock closed Thursday at $14.24.
Best Recreation Companies To Own In Right Now: Owens-Illinois Inc.(OI)
Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass container products primarily in Europe, North America, South America, and the Asia Pacific. The company produces glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice, and pharmaceuticals, as well as for soft drinks and other non-alcoholic beverages, including returnable/refillable glass containers. It serves brewers, wine vintners, distillers, and food producers. The company sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. Owens-Illinois, Inc. was founded in 1903 and is headquartered in Perrysburg, Ohio.
Advisors' Opinion:- [By Anora Mahmudova]
Owens Illinois Inc. (OI) �fell 1.9%. Analysts at Bank of America Merrill Lynch reportedly downgraded the glass company to neutral from buy , according to the Analyst Ratings Network.
- [By Ben Eisen and Saumya Vaishampayan]
Owens Illinois Inc. (OI) �was down 2.1% Friday. Analysts at Bank of America Merrill Lynch reportedly downgraded the glass company to neutral from buy , according to the Analyst Ratings Network.
- [By Jon C. Ogg]
Owens-Illinois Inc. (NYSE: OI) was upgraded to Overweight from Neutral by J.P. Morgan, sending shares up almost 4%.
Also see a guide to oil and stocks based up military action in Syria �prepared by UBS.
Hot Rising Stocks To Invest In Right Now: ConAgra Foods Inc.(CAG)
ConAgra Foods, Inc. operates as a food company primarily in North America. It operates in two segments, Consumer Foods and Commercial Foods. The Consumer Foods segment provides branded, private label, and customized food products, which are sold in various retail and foodservice channels. It offers products in various categories, such as meals, entrees, condiments, sides, snacks, and desserts in frozen, refrigerated, and shelf-stable temperature classes. This segment?s principal brands include Alexia, ACT II, Banquet, Blue Bonnet, Chef Boyardee, DAVID, Egg Beaters, Healthy Choice, Hebrew National, Hunt?s, Marie Callender?s, Orville Redenbacher?s, PAM, Peter Pan, Reddi-wip, Slim Jim, Snack Pack, Swiss Miss, Van Camp?s, and Wesson. The Commercial Foods segment provides commercially branded foods and ingredients that are sold to foodservice, food manufacturing, and industrial customers. Its primary products consist of specialty potato products, milled grain ingredients, a ran ge of vegetable products, seasonings, blends, and flavors. This segment sells products under brands, such as ConAgra Mills, Lamb Weston, and Spicetec Flavors & Seasonings. The company was founded in 1919 and is headquartered in Omaha, Nebraska.
Advisors' Opinion:- [By Ben Levisohn]
ConAgra’s (CAG) is supposed to make things people want to eat. Instead, the market is eating the food company’s lunch today following disappointing guidance.
REUTERSThe Wall Street Journal reports:
ConAgra Foods�Inc. cut its full-year earnings outlook, as the packaged-foods company said fiscal first-quarter earnings were softer than expected, especially in its consumer foods segment.
The company now expects full-year adjusted earnings to range from $2.34 to $2.38 a share, down from its prior view of about $2.40.
First-quarter earnings were 33 cents a share, or 37 cents excluding certain items. Analysts polled by Thomson Reuters most recently expected 45 cents a share.
Citigroup’s David Driscoll still has hope for ConAgra’s shares. He writes:
…while ConAgra is off to a disappointing start to F1Q14, we believe that overall US food volumes for the industry and ConAgra are at the cusp of a positive turnaround, in conjunction with the large US crop expected this fall. With ConAgra shares currently trading at 13.5x at the mid-point of management�� new F2014 EPS range, we believe that most of the disappointment surrounding today�� announcement is likely in the stock….We see good upside in ConAgra shares going forward, as Consumer Food trends are expected to
strengthen, and as Q1 weakness appears to be more macro driven versus a company-specific issue. This puts Kraft (KRFT) under the most scrutiny in our group.S&P Capital IQ’s Tom Graves concurs:
In light of disappointing EPS guidance from the company, we are lowering our 12-month target price to $38 from $42. Before special items, we are reducing our FY 14 (May) EPS estimate to $2.38 from $2.43, and FY 15′s by $0.08 to $2.62…In FY 14, we expect CAG’s Ralcorp acquisition to be the primary EPS growth driver. We see the stock at an attractive P/E discount to the food group.
Most fo
- [By Katie Brennan]
ConAgra Foods Inc. (CAG) added 5.1 percent to $35.04. The maker of Chef Boyardee pasta and Pam cooking spray reported quarterly profit that topped analysts estimates as acquisitions drove sales in its consumer foods unit.
Hot Rising Stocks To Invest In Right Now: SM Energy Co (SM)
SM Energy Company (SM Energy), incorporated in 1915, is an independent energy company. The Company is engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids (referred to as oil, gas, and NGLs) in onshore North America. The Company�� operations are focused on five operating areas in the onshore United States. In December 2011, the Company closed on its acquisition and development agreement with Mitsui E&P Texas LP (Mitsui), an indirect subsidiary of Mitsui & Co. Ltd., which transferred 12.5% of its working interest in certain non-operated oil and gas assets in South Texas. In August 2011, the Company sold approximately 15,400 net operated acres in LaSalle and Dimmit Counties, Texas to Talisman Energy USA Inc. and Statoil Texas Onshore Properties LLC (collectively, Talisman/Statoil). In June 2011, the Company completed the divestiture of certain assets located in its Mid-Continent region. In January 2011, it completed the divestiture of certain assets located in its Rocky Mountain region. In December 2013, SM Energy Co announced that it had closed its previously announced Anadarko Basin divestiture package.
As of December 31, 2011, the Company had working interests in 1,353 gross (741 net) productive oil wells and 2,928 gross (1,060 net) productive gas wells. All of its drilling activities are conducted using independent drilling contractors. As of December 31, 2011, it had 415.2 billion cubic feet of natural gas equivalent of proved undeveloped reserves.
South Texas & Gulf Coast Region
Operations for the South Texas & Gulf Coast region are managed from its office in Houston, Texas. The Company�� operations in South Texas & Gulf Coast Region focus primarily on its Eagle Ford shale program. Its acreage position covers a portion of the western Eagle Ford shale play, including acreage in the oil, the NGL-gas, and the dry gas windows of the play. During the year ended December 31, 2011, it had approx! imately 250,000 net acres in the play, which consisted of an approximate 165,000 net acre operated position in Webb, Dimmit, and LaSalle Counties, Texas and an approximate 85,000 net acre non-operated position in Maverick, Dimmit, LaSalle, and Webb Counties, Texas. As of December 31, 2011, it had approximately 196,000 net acres in the play. During 2011, the production was 69.7 billion cubic feet of natural gas equivalent.
Rocky Mountain Region
Operations for the Company�� Rocky Mountain region are managed from its office in Billings, Montana. During 2011, the Company focused on Bakken/Three Forks formations in the North Dakota portion of the Williston Basin, where it had approximately 87,000 net acres.
Mid-Continent Region
Operations for the Company�� Mid-Continent region are managed from its office in Tulsa, Oklahoma. The Company�� operations in the Mid-Continent region are primarily focused on the horizontal development of the Granite Wash formation in western Oklahoma. Its Mid-Continent region also manages its Woodford shale assets. In 2011, its Mid-Continent region's production was 31.6 billion cubic feet of natural gas equivalent. Proved reserves during 2011 were 234.6 billion cubic feet of natural gas equivalent.
ArkLaTex Region
The Company�� focus on the ArkLaTex region has been the horizontal development of its Haynesville shale acreage. In 2011, production in its ArkLaTex region was 30.1 billion cubic feet of natural gas equivalent.
Permian Region
Operations for the Company�� Permian region are managed from its office in Midland, Texas. The Company�� Permian region covers western Texas and eastern New Mexico. Its primary area of development focus in this region is the Wolfberry tight oil play. During 2011, the region�� production was 11.5 billion cubic feet of natural gas equivalent.
Advisors' Opinion:- [By Aaron Levitt]
It pays to be a fist mover when it comes to America�� shale boom. In this case, it pays to the tune of 75% returns for shareholders in E&P firm SM Energy (SM).
- [By Tyler Crowe]
Who's doing it the best?
Company % Liquids in�Portfolio Oil Production Replacement Rate (3 Years) Reserve Replacement Costs (3-Year Average) Per boe Rosetta Resources� (NASDAQ: ROSE ) 57% 846% $6.99 Continental Resources� (NYSE: CLR ) 72% 827% $12.61 Laredo Petroleum� (NYSE: LPI ) 52% 1,042% $13.51 SM Energy� (NYSE: SM ) 53% 392% $14.67 SandRidge Energy� (NYSE: SD ) 58% 704% $14.85
It can be pretty handy to evaluate the entire industry on how efficiently it's replacing reserves, but reserve replacement costs can be more effective in evaluating individual companies. The lower the costs, the better it is. According to Ernst & Young, the most effective company at controlling reserve replacement costs is private company�Antero Resources, with a three-year average reserve replacement cost of about $2.88 per barrel of oil equivalent. Antero, and four of the other top five companies on Ernst & Young's list, are almost pure natural gas plays. If we've learned one thing over the past couple of years, it's that oil reserves and natural gas reserves are two totally different things when it comes to value. The five following companies have more than 50% liquids on�their�reserves and had the lowest reserve replacement costs for 2012.Sources: Ernst & Young and S&P Capital IQ; author's calculations.
Hot Rising Stocks To Invest In Right Now: Warren Resources Inc.(WRES)
Warren Resources, Inc., an independent energy company, engages in the exploration, development, and production of onshore crude oil and gas reserves in the United States. It primarily explores for oil reserves in the Wilmington field in California; and natural gas in the Washakie Basin in Wyoming. The company was founded in 1990 and is headquartered in New York, New York.
Advisors' Opinion:- [By gurujx]
Warren Resources, Inc. (WRES): Vice President & CFO Stewart P Skelly Sold 54,000 Shares
Vice President & CFO Stewart P Skelly sold 54,000 shares of WRES stock on 09/19/2013 at the average price of $2.91. Stewart P Skelly owns at least 116,545 shares after this. The price of the stock has increased by 1.37% since.
- [By Rich Smith]
New York City-based Warren Resources (NASDAQ: WRES ) has a new CFO.
On Monday, the independent oil and gas company announced that it has promoted current Chief Financial Officer Timothy A. Larkin to the position of executive vice president for mergers�and acquisitions, after 18 years' service in the former capacity. Taking his place will be Corporate Controller Stewart P. Skelly, now promoted to the CFO's post.
Hot Rising Stocks To Invest In Right Now: NetSpend Holdings Inc.(NTSP)
Netspend Holdings, Inc., together with its subsidiaries, provides general purpose reloadable (GPR) prepaid debit and payroll cards, and alternative financial service solutions to underbanked and other consumers in the United States. Its GPR cards offer access to FDIC-insured depository accounts with a menu of pricing and features tailored to underbanked consumers needs; and serves as access devices to an FDIC-insured depository account with a bank. The company also provides various products and services to its cardholders, such as direct deposit, interest-bearing savings accounts, bill pay functionality, card-to-card transfer capability, personal financial management tools, and online and mobile phone card account access, as well as overdraft protection through its issuing Banks, and complimentary insurance coverage services. Netspend Holdings, Inc. markets its cards through various distribution channels, including retail distributors, direct-to-consumer and online marketi ng programs, and contractual relationships with corporate employers. As of December 31, 2011, it offered approximately 2.1 million active cards through approximately 600 retail distributors at approximately 40,000 locations; and reload services through approximately 450 retailers at approximately 130,000 locations. The company was founded in 1999 and is based in Austin, Texas.
Advisors' Opinion:- [By Jane Edmondson]
One additional item of note: the stock has been a rumored take-out candidate since another large competitor, NetSpend (NTSP), received an offer to be acquired in February by global payment solutions provider TSYS (TSS).