Thursday, April 17, 2014

Phillips 66 Looking Beyond Refining

This article was originally published by TheStreet on April 9, 2014
By Sarfaraz A. Khan. Research  assistant: Gohar Yousuf
NEW YORK (TheStreet) -- For Phillips 66  (PSX_), will higher margins mean a higher stock price?
The energy company, which has seen a profit decline in its core refining business, is diversifying by investing more in its higher-margin midstream and chemical businesses.
This year, Phillips 66 and its joint ventures will spend $4.6 billion in capital expenditures, primarily to expand the company's midstream and chemical businesses, both of which posted higher earnings last year. Midstream is the business of transporting and processing oil.
Phillips 66's expansion in the higher margin operations will likely boost the company's profits, and investors are optimistic, as the company's shares have rise 25% over the past 52 weeks. They were recently trading at $77.82, up 26 cents.

Should Investors Be Worried About Chevron’s Profit Warning?

This article was originally published by GuruFocus on April 10, 2014

By Sarfaraz A. Khan. Research assistant: Gohar Yousuf

Yesterday, America’s second biggest oil and gas company Chevron (CVX) issued a profit warning for the first quarter of the current fiscal year. Does this mean that the investors should start panicking?

Tuesday, April 15, 2014

Stay Away From CVR Refining

This article was originally published by TheStreet  on April 08, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- An attractive yield isn't everything. Here's why you should stay away from CVR Refining (CVRR_).
CVR Refining is a limited partnership and the refining arm of CVR Energy (CVII_), which, in turn, is mainly a holding company that is also engaged in fertilizer manufacturing operations through CVR Partners (UAN_). CVRR offers attractive yield of 7.80% and it is trading just 6.6 times its trailing earnings. But this $3.4 billion market-cap company is not without risks.

Monday, April 14, 2014

Should You Buy Into Anadarko's Rally?

This article was originally published by TheStreet on April 7, 2014
By Sarfaraz A. Khan

NEW YORK (TheStreet) -- Shares of Anadarko Petroleum  (APC_) have rallied about 16% since last Thursday when news broke that the energy company reached a record $5.15 billion settlement in an environmental case.

The question now is whether the stock has more upside.

Don't Give Up on Symantec

This article was originally published by TheStreet on April 4, 2014
By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
NEW YORK (TheStreet) -- Analysts hate Symantec (SYMC_) -- at least seven of them have downgraded the Internet security company. But I don't think it's as bad as you may think.
On March 20 Symantec fired CEO Steve Bennett, who has been running the struggling company for less than 20 months. Although Symantec has shied from giving specific reasons for the CEO's exit, rumors abound that Symantec was not satisfied with the pace of the turnaround. In 2012, the company fired Bennett's predecessor, Enrique Salem, in a similar fashion.

Friday, April 11, 2014

4 Reasons Why Toyota Is Buying Back Shares

This  article was originally published by Seeking Alpha on March 27, 2014

By Sarfaraz A. Khan


Summary

  • Toyota has announced a $3.5 billion buyback plan.
  • The company's ADRs have lagged behind its rivals.
  • The company is sitting atop a massive pile of cash which is bigger than Tesla's market cap.
  • The company has fallen behind other leading S&P 500 companies in terms of returning cash to shareholders.
  • Toyota is eyeing record levels of profits and sales.

Peru-Focused BPZ Resources Is On The Verge Of A Turnaround; Has 40%-Plus Upside

This article was originally published by Seeking Alpha on March 25, 2014

By Sarfaraz A. Khan. Research assistant: Gohar Yousuf

Summary
·         BPZ Resources has developed only a fraction of its properties.
·         The company has a disappointing track record but is eyeing a turnaround on the back of higher production.
·         The company has already given the first solid evidence of a turnaround, is nearing profitability by Q1-2015.

Thursday, April 10, 2014

Walgreen Still Healthy Despite Missing Earnings Again

This article was originally published by TheStreet on April 2, 2014
By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
NEW YORK (TheStreet) -- You would think by now Walgreen (WAG_) would need a booster shot.

The pharmacy company released anemic quarterly results last week showing margins dropped by more than 120 basis points.
Walgreen reported a year-over-year decline in net income to $754 million, or 78 cents a share, from $756 million, or 79 cents a share. Profit excluding items was 91 cents, 2 cents less than the consensus estimate of analysts polled by Thomson Reuters.
So why is the stock, currently trading around $66, up nearly 15% for the year to date? Because the company is still profitable.

Nike Bets Billions On Soccer As The World Cup Nears

This article was originally published by GuruFocus on March 31, 2014

By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
 
The world’s biggest athletic merchandise manufacturer, Nike (NKE), has recently released its quarterly results that were better than market’s expectations. The company has significantly increased its advertising expenditure, which it calls demand creation, as it gears up for the upcoming FIFA world cup in Brazil which is only three months away. The company has also, reportedly, forged a massive $1 billion deal with Manchester United (MANU).

Tuesday, April 8, 2014

Exxon Mobil Might Struggle, But Not For Long

This article was originally published by GuruFocus on March 31, 2014

By Sarfaraz A. Khan
 
Earlier in January, analysts at Bank of America Merrill Lynch downgraded Exxon Mobil (XOM) to neutral from buy which caused a dip in the oil giant’s shares. Just two days ago, Bank of America made another change by upgrading Exxon Mobil to buy with a price target of $110. As a result, Exxon Mobil’s shares have risen by more than 3% since Thursday and closed at $97.70 on March 28.

Exxon Mobil’s investors would welcome the recent rally as it comes after the company revealed that it would reduce its capital expenditure by 6% and was expecting flat production for the current year to $39.8 billion. ... read full article at GuruFocus