It's been a busy week for Halliburton (NYSE: HAL ) . And at the end, the second largest oil services company seems to have come out trumps. Here is a company whose management knows what it's doing. The strategy to return cash to investors through share buybacks is proving to be a master stroke.
Halliburton's corporate headquarters in Houston. Source: Wikimedia commons.
Not the best of weeks ...
Starting with the reporting of the second-quarter results, this hasn't been the most impressive of weeks for Halliburton. A flat rig count and lower drilling activity ensured that revenue from the North American segment -- the company's largest market -- declined almost 10%, year over year, in the first six months of 2013. To top that, a federal antitrust probe has been initiated targeting the U.S. hydraulic fracturing market, with the top names, including Halliburton, coming under investigation.
Top 5 Construction Material Stocks To Watch For 2015: Wendy's/Arby's Group Inc.(WEN)
The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.
Advisors' Opinion:- [By Rich Smith]
Hewing strictly to the dictates of the five-second rule for food companies, Kellogg (NYSE: K ) dropped an executive officer Monday, and before he had time to be considered "dirty," Wendy's (NASDAQ: WEN ) picked him up.
- [By Mike Deane]
After the closing bell on Monday, The Wendy’s Company (WEN) announced that it had completed its “System Optimization” initiative, which involved selling 104 of its restaurants to franchisees.
Wendy’s has been attempting to create a more predictable revenue stream by selling 418 company-run restaurants in 13 U.S. markets. Since 2013, Wendy’s has seen $235 million in income from these sales. Through the company’s “System Optimization” initiative, it expects to have a higher operating margin and stronger free cash flow; the company also expects these latest moves to bring a higher quality to its earnings.
Wendy’s president and CEO, Emil Brolick, had the following comments about the company’s latest moves:�”We are proud of our team that has diligently worked to complete the sale ��faster than our original plan — of the 13 total markets to excellent franchise organizations that are fully committed to building the Wendy’s brand through restaurant reimaging, new development and other growth initiatives.�This is an important step for the future of our business …”
WEN stock finished the day down 17 cents, or 1.85%, but the stock was slightly higher in after hours trading. YTD, the company’s stock is up 4.44%.
WEN Dividend SnapshotAs of Market Close, March 24 2014
Click here to see the complete history of WEN dividends.
- [By Jim Jubak, Senior Markets Editor, MoneyShow.com]
It's hard for any company to raise prices in the current non-inflationary environment. But it's especially hard right now for operators of fast food restaurants, given the intense price competition in a very crowded marketplace. McDonald's sales growth in recent quarters has been driven by the success of its Dollar Menu, so raising prices in that segment are a big deal for the company. In addition, pushback from franchisees who say they can't afford to refurbish their stores, given higher charges from McDonald's hits at one of McDonald's key advantages in its market—it's ability to refresh stores more frequently than competitors. A McDonald's refresh at $600,000 on average, according to the company, costs substantially more than a remodel at Burger King (BKW) at $300,000 or Wendy's (WEN) at $375,000 for the least expensive version. McDonald's restaurants average $2.5 million in annual sales.
10 Best Oil Service Stocks To Invest In Right Now: HopFed Bancorp Inc.(HFBC)
HopFed Bancorp, Inc. operates as the holding company for Heritage Bank that provides various banking products and services primarily in western Kentucky, and middle and western Tennessee. The company offers a range of deposit products, including demand deposits, time deposits, money market accounts, passbook savings accounts, individual retirement accounts, and certificates of deposit. Its loan portfolio comprises one-to-four family residential loans, multifamily residential loans, construction loans, nonresidential loans, commercial real estate loans, and land and land development loans, as well as loans secured by deposits, other consumer loans, and commercial loans. The company, through its subsidiary, Fall and Fall Insurance Agency, sells life and casualty insurance products to individuals and businesses. HopFed Bancorp offers its products and services through its branch offices located in Hopkinsville, Murray, Cadiz, Elkton, Fulton, Calvert City, and Benton, Kentucky; and in Clarksville, Pleasant View, Ashland City, Kingston Springs, and Erin, Tennessee. The company was founded in 1879 and is headquartered in Hopkinsville, Kentucky.
Advisors' Opinion:- [By Louis Navellier]
HopFed Bancorp (HFBC), at $85 million in market cap, operates 18 branches in middle Tennessee and Western Kentucky and can be thought of as poster child for what is going on in the small banking sector. An activist investor took a stake in the bank and opposed an ill-advised acquisition. Instead, he suggested HopFed management get its own house in order. Management went along and canceled the deal, instituted a stock buyback plan and doubled the dividend. HFBC was upgraded to an “A” back in May and still is a “strong buy” right now.
10 Best Oil Service Stocks To Invest In Right Now: Guggenheim Invest S&P MidCap 400 Pure Value ETF (RFV)
Guggenheim S&P MidCap 400 Pure Value ETF (the Fund) seeks to replicate as closely as possible the performance of the S&P MidCap 400/Citigroup Pure Value Index (the Index). The Index is narrow in focus, containing only those S&P MidCap 400 companies with strong value characteristics as selected by Standard & Poor��.
The Fund uses a passive management strategy to track the performance of the Index. The Fund invests in substantially all of the securities in the Index in approximately the same proportions as in the Index. The Fund's investment advisor is Rydex Investments.
Advisors' Opinion:- [By Holly LaFon]
Whitney George is Director of Investments, Managing Director, and a Portfolio Manager of Royce & Associates, LLC, investment advisor to The Royce Funds. He serves as portfolio manager for Royce Premier Fund (RPR), Royce Low-Priced Stock Fund (RLP), Royce Global Value Fund (RGV), Royce SMid-Cap Value Fund (RSV), and Royce Focus Trust (FUND). He also serves as assistant portfolio manager for Royce Micro-Cap Fund (RMC), Royce Value Fund (RVV), Royce Value Plus Fund (RVP), Royce Focus Value Fund (RFV), and Royce Capital Fund ��Micro-Cap Portfolio (RCM). Mr. George's thoughts in this interview concerning the stock market are solely his own and, of course, there can be no assurance with regard to future market movements.
10 Best Oil Service Stocks To Invest In Right Now: Turquoise Hill Resources Ltd (TRQ)
Turquoise Hill Resources Ltd., formerly Ivanhoe Mines Ltd., is an international mineral exploration and development company. The Company�� principal mineral resource property is the Oyu Tolgoi Project, located in Mongolia. The Company also has two subsidiaries, through which it holds interests in coal resource properties in Mongolia and molybdenum, rhenium, copper, gold and uranium resource properties in Australia. Its subsidiary, SouthGobi Resources Ltd. (SGQ), owns and operates the Ovoot Tolgoi Coal Project located in Mongolia. Its subsidiary, Ivanhoe Australia Limited (Ivanhoe Australia), owns the Osborne Project, the Merlin Project and the Mount Dore Project, all of which are located in Queensland, Australia. It also holds interests in several other mineral resource projects in Asia, including a 50% interest in the Kyzyl Gold Project, located in Kazakhstan, through a shareholding in Altynalmas Gold. In July 2012, Rio Tinto plc acquired 51% interest in the Company. Advisors' Opinion:- [By Paul Ausick]
Mining giant Rio Tinto PLC (NYSE: RIO) already owns 50.8% of Turquoise Hill Resources Ltd. (NYSE: TRQ), and speculation that Rio Tinto will buy the other 49.2% has boosted Turquoise Hill’s share price by nearly 13% in the week ending Thursday. Most of the gain came in the last two days, although shares were giving some of that gain back Friday probably because Rio Tinto has not announced an offer yet.
- [By Brian Pacampara]
What: Shares of Canadian mineral explorer Turquoise Hill Resources (NYSE: TRQ ) sank 12% today after receiving notification from the government of Mongolia that project financing for Oyu Tolgoi will now require approval by the Mongolian parliament.
- [By Gary Bourgeault]
Shares of Turquoise Hill (TRQ) have soared since closing at $4.01 per share on October 15, 2013. The company has been under pressure since the government of Mongolia let it be known it has 22 points of contention with the company, which resulted in the second phase of development at its giant Oyu Tolgoi copper/gold mine to be suspended.
- [By Sally Jones]
According to the GuruFocus Value Screen for finding 52-Week Lows, Turquoise Hill Resources Ltd. (TRQ), Global-Tech Advanced Innovations (GAI) and Rentech Nitrogen Partners LP (RNF) are companies on a low and still held by billionaire investors. All three companies are on a 52-week low, and more than 64% off a 52-week high.
10 Best Oil Service Stocks To Invest In Right Now: VIVUS Inc (VVUS)
VIVUS, Inc., incorporated on May 16, 1996, is a biopharmaceutical company. It commercializes and develops therapies to address unmet needs in obesity, sleep apnea, diabetes and sexual health. The Company's drug, Qsymia (phentermine and topiramate extended-release) was approved by the the United States Food and Drug Administration (FDA) for the treatment of obesity as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index (BMI) of 30 or greater (obese), or 27 or greater (overweight) in the presence of at least one weight-related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol (dyslipidemia). Qsymia incorporates low doses of active ingredients from two previously approved drugs, phentermine and topiramate. It has completed Phase 2 clinical studies for Qsymia for the treatment of sleeps apnea and Qsymia for the treatment of type 2 diabetes. Its drug also includes STENDRA, or avanafil.
Qsymia for the treatment of obesity was approved as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial BMI of 30 or greater (obese), or 27 or greater (overweight) in the presence of at least one weight-related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol (dyslipidemia). Qsymia incorporates low doses of active ingredients from two previously approved drugs, phentermine and topiramate.
The Company initially launched Qsymia for distribution to eligible patients through the home delivery networks of two certified pharmacies, CVS Pharmacy and Walgreens. Since then, it has expanded the distribution of Qsymia to include the home delivery networks of Express Scripts, Wal-Mart Pharmacy and, for its members only, Kaiser Permanente. Clinical studies of topiramate, a component of Qsymia, in type 2 diabetics resulted in a clinically reduction of hemoglobin A1c (HbA1c). The! Company's drug, STENDRA (avanafil), is an oral PDE5 inhibitor the Company has licensed from Mitsubishi Tanabe Pharma Corporation (MTPC).
Advisors' Opinion:- [By Rebecca McClay]
And, VIVUS Inc. (Nasdaq: VVUS) is up about 2% after the company quickly filled a leadership void. Anthony P. Zook has resigned as chief executive officer and from the VIVUS Board of Directors, effective Sept. 3, 2013, due to a medical condition. Seth H.Z. Fischer, a former senior executive at Johnson & Johnson, is to serve as chief executive officer, effective today. He will also join the VIVUS Board of Directors.
10 Best Oil Service Stocks To Invest In Right Now: Elisa Oyj (ELI1V)
Elisa Oyj is a Finland-based Company engaged in the provision of Information and Communication Technology (ICT) services in Finland and Estonia. The Company operates within two business segments: Consumer Customers and Corporate Customers. The Consumer Customers segment provides consumers and households with telecommunications services, such as voice and data services. The Corporate Customers segment provides to the corporate and community customers voice and data services, ICT solutions and contact center services. All the services are provided under the Elisa and Saunalahti brands. The Company�� global alliance partners are Vodafone and Telenor. The Company operates through its subsidiaries, including Appelsiini Finland Oy, Arediv Oy, Ecosite Oy and Elisa Eesti As, among others. Advisors' Opinion:- [By Adam Ewing]
A sale would provide the shareholders with cash, while potentially strengthening DNA against larger rivals Elisa Oyj (ELI1V) and TeliaSonera AB. (TLSN) The IPO could be the biggest in Finland, home of Nokia Oyj (NOK1V) and ��ngry Birds��maker Rovio Entertainment Oy, since 2005.
10 Best Oil Service Stocks To Invest In Right Now: Nuveen Premium Income Municipal Fund 2 Inc (NPM)
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) is a non-diversified, closed-end management investment company. The Fund seeks to provide current income exempt from regular federal income tax by investing primarily in a portfolio of municipal obligations issued by state and local government authorities or certain United States territories. Nuveen Asset Management (NAM) is the Fund's investment adviser. NAM is a wholly owned subsidiary of Nuveen Investments, Inc. Effective January 1, 2005, Nuveen Advisory Corp. (NAC) and its affiliate, Nuveen Institutional Advisory Corp. (NIAC), were merged into NAM.
Advisors' Opinion:- [By Chuck Carnevale]
Next, I turned to an evaluation of gross profit margin (gpm), net profit margin (npm), return on assets (roa), return on equity (roe) and return on invested capital (roi). The example below only includes gross and net profit margin, however, I review data on all the metrics stated above.
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