Rogers Communication (RCI) increased dividends by 10% this week bringing their dividends to $0.355 and a yield of 4.07%. Rogers is a Canandian Dividend Aristocrat and continues to reward investors. I do not hold a position in Rogers but it is on my short list and is trading near the bottom of its 52-week low.
TransCanada Corporation (TRP), another Canadian Dividend Aristocrat, also increased its dividend after a quarter that exceeded expectations. The increase of 2 cents, for a total of $0.42 per quarter, represent a 5% increase and provides TRP with a 4.42% dividend yield.
Disclosure NONE.
Showing posts with label Technology. Show all posts
Showing posts with label Technology. Show all posts
Sunday, February 20, 2011
Cashing in on the smartphone craze New FONE ETF Debuts
Love ETFs? Love your smartphone? Well break out your iPhone, Droid or BlackBerry. Starting today, you can buy a smartphone ETF.
First Trust Portfolio launched the new ETF on Friday under the ticker FONE (FONE). It lists Samsung, Motorola Mobility (MMI) and Nokia among its major holdings. And experts are giving it a thumbs up.
"It's not heavily invested in just a few stocks," said Tom Lydon, president of Global Trends Investments and editor of ETFTrends.com. "It's pretty broadly diversified."
About a quarter of the ETF includes semiconductors, with another 23% dominated by communications equipment.
But the rest is spread out pretty well among electronic equipment, wireless services and others. And some of the bigger names aren't included among the top 10.
There's no Apple (AAPL), AT&T (T), Verizon (VZ) or Google (GOOG) among the ETF's top 10 holdings, which Lydon says "bodes well for how this index was constructed." But those names are part of both the index and the ETF, which have a total of 72 components.
The smartphone ETF is clearly a niche-y product. It's unlikely that big institutional investors will snap it up. But that might be exactly what retail investors are hungering for.
"Some of these companies are huge," said Rick Ferri, investment adviser at Portfolio Solutions.
The ETF comes less than a year after Nasdaq launched the NasdaqOMX CEA Smartphone Index (QFON). Since its debut in April 2010, the index has gained more than 19%.
Still, it's worth noting that this is roughly in line with how the PowerShares QQQ (QQQQ) ETF, which tracks the Nasdaq-100 and holds many of the same stocks, has done.
So investors don't necessarily need to buy the FONE ETF to cash in on the mobile craze.
Disclosure NONE.
First Trust Portfolio launched the new ETF on Friday under the ticker FONE (FONE). It lists Samsung, Motorola Mobility (MMI) and Nokia among its major holdings. And experts are giving it a thumbs up.
"It's not heavily invested in just a few stocks," said Tom Lydon, president of Global Trends Investments and editor of ETFTrends.com. "It's pretty broadly diversified."
About a quarter of the ETF includes semiconductors, with another 23% dominated by communications equipment.
But the rest is spread out pretty well among electronic equipment, wireless services and others. And some of the bigger names aren't included among the top 10.
There's no Apple (AAPL), AT&T (T), Verizon (VZ) or Google (GOOG) among the ETF's top 10 holdings, which Lydon says "bodes well for how this index was constructed." But those names are part of both the index and the ETF, which have a total of 72 components.
The smartphone ETF is clearly a niche-y product. It's unlikely that big institutional investors will snap it up. But that might be exactly what retail investors are hungering for.
"Some of these companies are huge," said Rick Ferri, investment adviser at Portfolio Solutions.
"You're not getting a really pure play on smartphones."
The ETF comes less than a year after Nasdaq launched the NasdaqOMX CEA Smartphone Index (QFON). Since its debut in April 2010, the index has gained more than 19%.
Still, it's worth noting that this is roughly in line with how the PowerShares QQQ (QQQQ) ETF, which tracks the Nasdaq-100 and holds many of the same stocks, has done.
So investors don't necessarily need to buy the FONE ETF to cash in on the mobile craze.
Disclosure NONE.
Saturday, February 19, 2011
RF Industries (RFIL) Announces Two-for-One Split; Increases Quarterly Dividend 33%
RF Industries, Ltd., (Nasdaq: RFIL) announced that their Board has declared a two-for-one split.
The Board also declared a quarterly dividend of $0.02 per common share post-split, $0.08 annualized. The dividend is a 33% increase from the current rate, following the split.
The dividend is payable on April 15, 2011, to shareholders of record on March 31, 2011. The ex-dividend date is March 29, 2011.
Yield on the dividend, currently, is 1%.
Disclosure None
The Board also declared a quarterly dividend of $0.02 per common share post-split, $0.08 annualized. The dividend is a 33% increase from the current rate, following the split.
The dividend is payable on April 15, 2011, to shareholders of record on March 31, 2011. The ex-dividend date is March 29, 2011.
Yield on the dividend, currently, is 1%.
Disclosure None
I like Apple Do you like Apple? But I LOVE Apple with a 8.32% Yield!~!(NASDAQ: QQQX)
NASDAQ Premium Income & Growth Fund (NASDAQ: QQQX), Introducing a shot at playing apple shares and yet still get paid a handsome 8.32% dividend each and every quarter. Top holding is apple at 20.5%, top holdings below:
First, the Fund will invest substantially all of its net assets in a portfolio of investments designed to closely track the performance of the NASDAQ 100 Index.
Second, the Fund will use certain option strategies primarily consisting of writing NASDAQ 100 Index call options to generate premium income and reduce the volatility of the Fund's returns, with the intention of improving the Fund's risk adjusted returns.
The Fund invests in industries, such as software, computers and peripherals, communications equipment, semiconductors and semiconductor equipment, and biotechnology. IQ Investment Advisors LLC serves as the investment advisor to the Fund. The Fund's sub-advisor is Nuveen HydePark Group, LLC.
Disclosure I am Long QQQX shares.
| Issuer | % Portfolio |
|---|---|
| Apple Computer Inco: Equity | 20.59% |
| Qualcomm: Equity | 5.06% |
| Google Inc: Equity | 4.53% |
| Microsoft Corporati: Equity | 4.13% |
| Oracle Corporation: Equity | 3.65% |
| Intel Corporation: Equity | 2.85% |
| Amazon.com Incorpor: Equity | 2.74% |
| Gilead Sciences Inc: Equity | 2.25% |
| Comcast Corporation: Equity | 2.20% |
| Cisco Systems Incor: Equity | 2.07% |
OBJECTIVE
The Fund seeks high current income and capital appreciation through investment in a portfolio of investments designed to closely track the performance of the NASDAQ 100 Index and by writing NASDAQ 100 Index call option.
NASDAQ Premium Income & Growth Fund Inc. (the Fund) is a diversified, closed-end management investment company. The Fund's investment objective is to provide premium income and capital appreciation. The Fund pursues its objective principally through a two-part strategy.First, the Fund will invest substantially all of its net assets in a portfolio of investments designed to closely track the performance of the NASDAQ 100 Index.
Second, the Fund will use certain option strategies primarily consisting of writing NASDAQ 100 Index call options to generate premium income and reduce the volatility of the Fund's returns, with the intention of improving the Fund's risk adjusted returns.
The Fund invests in industries, such as software, computers and peripherals, communications equipment, semiconductors and semiconductor equipment, and biotechnology. IQ Investment Advisors LLC serves as the investment advisor to the Fund. The Fund's sub-advisor is Nuveen HydePark Group, LLC.
Disclosure I am Long QQQX shares.
Friday, February 18, 2011
Intel (INTC) to Build $5B Facility in Arizona
The announcement was made by Intel President and CEO Paul Otellini during a visit by President Barack Obama at an Intel facility in Hillsboro, Ore.
“The investment positions our manufacturing network for future growth,” said Brian Krzanich, senior vice president and general manager, Manufacturing and Supply Chain. “This fab will begin operations on a process that will allow us to create transistors with a minimum feature size of 14 nanometers. For Intel, manufacturing serves as the underpinning for our business and allows us to provide customers and consumers with leading-edge products in high volume."
The company said that the construction will begin in the middle of this year and is expected to be completed in 2013.
Disclosure I am long INTC shares.
Tuesday, February 15, 2011
American Software (AMSWA) Approves $0.09 Per Share Quarterly Cash Dividend
American Software, Inc. (NASDAQ: AMSWA) has approved the Company’s quarterly dividend of $.09 per share. The Company’s regular quarterly cash dividend of $.09 per share of American Software common stock is payable on May 31, 2011 to shareholders of record at the close of business on May 13, 2011.
Disclosure I am Long AMSWA shares.
Disclosure I am Long AMSWA shares.
Sunday, February 13, 2011
Intel Keeps the Bears at Bay
Worries about Intel’s (NASDAQ:INTC) future appear to be premature, for now.
The world’s largest chipmaker said after the closing bell Thursday that its fourth-quarter profit jumped 48%, easily beating what Wall Street had expected.
And next quarter appears safe too: Intel guided first-quarter revenue and gross margins above analysts’ expectations.
The report continued the upward momentum in the chipmaker’s shares, which have been rising this week after shares had fallen about 6% in the past month — underperforming both the semiconductor sector as a whole, as well as the broader market.
In after-hours trading, the stock tacked on another 1.7% to $21.71.
Perhaps even more importantly, the news suggests that the transition assumed to be underway from personal computers to tablets and other mobile computing options is far from complete, and that Intel can maybe continue to succeed while trying to lodge a foothold in the mobile-device chip space.
Specifically, Intel said net income for the quarter ended Dec. 31 rose to $3.4 billion, to 59 cents a share, from $2.3 billion, or 40 cents a share, a year earlier. Revenue climbed 8% to $11.5 billion.
Wall Street analysts, on average, had been expecting the company to post earnings of 53 cents a share on revenue of $11.4 billion.
Intel also said gross margins came in at 67%, while average selling prices for the company’s microprocessors was up slightly from the third quarter.
The company continues to be bullish on margins, saying they would be 64%, plus or minus a couple percentage points, in the first quarter, slightly above Street forecasts.
But with the crowd-pleasing press release that offered up to Wall Street the top- and bottom-line upside surprise came the figures that investors are most concerned about: namely, the appearance that growth is slowing in the company’s PC client business, which is 70% of Intel’s revenue.
That division grew 14% year-over-year three months ago; on Thursday, Intel said fourth-quarter PC client revenue rose only 3.5%. Those numbers dovetail a little too conveniently with research firm Gartner’s announcement on Wednesday that it was lowering its fourth-quarter PC growth forecast to 3.1% from 4.8%.
For investors who have seen this stock trade between $18 and $24 for nearly 18 months, and may see it climb to $22 on Friday off this earnings report, it may be time to wonder how much upside is left while Intel seeks a better growth model.
Disclosure I am long INTC shares.
The world’s largest chipmaker said after the closing bell Thursday that its fourth-quarter profit jumped 48%, easily beating what Wall Street had expected.
The report continued the upward momentum in the chipmaker’s shares, which have been rising this week after shares had fallen about 6% in the past month — underperforming both the semiconductor sector as a whole, as well as the broader market.
In after-hours trading, the stock tacked on another 1.7% to $21.71.
Perhaps even more importantly, the news suggests that the transition assumed to be underway from personal computers to tablets and other mobile computing options is far from complete, and that Intel can maybe continue to succeed while trying to lodge a foothold in the mobile-device chip space.
Specifically, Intel said net income for the quarter ended Dec. 31 rose to $3.4 billion, to 59 cents a share, from $2.3 billion, or 40 cents a share, a year earlier. Revenue climbed 8% to $11.5 billion.
Wall Street analysts, on average, had been expecting the company to post earnings of 53 cents a share on revenue of $11.4 billion.
Intel also said gross margins came in at 67%, while average selling prices for the company’s microprocessors was up slightly from the third quarter.
The company continues to be bullish on margins, saying they would be 64%, plus or minus a couple percentage points, in the first quarter, slightly above Street forecasts.
But with the crowd-pleasing press release that offered up to Wall Street the top- and bottom-line upside surprise came the figures that investors are most concerned about: namely, the appearance that growth is slowing in the company’s PC client business, which is 70% of Intel’s revenue.
That division grew 14% year-over-year three months ago; on Thursday, Intel said fourth-quarter PC client revenue rose only 3.5%. Those numbers dovetail a little too conveniently with research firm Gartner’s announcement on Wednesday that it was lowering its fourth-quarter PC growth forecast to 3.1% from 4.8%.
For investors who have seen this stock trade between $18 and $24 for nearly 18 months, and may see it climb to $22 on Friday off this earnings report, it may be time to wonder how much upside is left while Intel seeks a better growth model.
Disclosure I am long INTC shares.
Wayside Technology Group, Inc. Reports 2010 Fourth Quarter Results and Declares Quarterly Dividend
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) today reported financial results for the fourth quarter ended December 31, 2010. The results will be discussed in a conference call to be held on Friday, February 4, 2011 at 10:00 AM Eastern time. The dial-in telephone number is (866) 835 8907 and the pass code is "WSTG."
This conference call will be available via live webcast -- in listen-mode only -- at www.earnings.com. A replay will also be available on the company's website at www.waysidetechnology.com.
Cash and marketable securities amount to $15.5 million, representing 58% of equity as of December 31, 2010.
Net sales for the fourth quarter of 2010 increased 54% or $22.6 million to $64.9 million compared to $42.3 million for the same period in 2009. Total sales for the fourth quarter of 2010 for our Lifeboat segment were $45.8 million compared to $28.9 million in the fourth quarter of 2009, representing a 58% increase. Total sales for the fourth quarter of 2010 for our Programmer's Paradise segment were $19.1 million compared to $13.4 million in the fourth quarter of 2009, representing a 43% increase.
Net sales for 2010 increased 41% or $60.3 million to $206.7 million compared to $146.4 million in 2009. Total sales for our Lifeboat segment were $149.2 million compared to $98.1 million in 2009, representing a 52% increase. Total sales for the Programmer's Paradise segment in 2010 amounted to $57.6 million, compared to $48.3 million in 2009, representing a 19% increase.
"The fourth quarter of 2010 was a tremendous success for us," said Simon F. Nynens, Chairman and Chief Executive Officer. "Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings."
Sales for both segments showed strong growth. The increase in net sales for the three months and full year results for the period ended December 31, 2010, compared to the same periods in 2009, was mainly a result of our continued focus on the expanding virtual infrastructure-centric business, the addition of several key product lines, and the strengthening of our account penetration.
Gross Profit for the quarter ended December 31, 2010 was $6.2 million compared to $4.4 million for the fourth quarter of 2009, a 43% increase. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.1 million in the fourth quarter of 2009, representing a 39% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment, as well as vendor rebates and discounts earned. Total gross profit for our Programmer's Paradise segment was $1.9 million compared to $1.3 million in the fourth quarter of 2009, representing a 53% increase. This increase was primarily due to the increased sales volume. Vendor rebates and discounts for the quarter ended December 31, 2010 amounted to $0.9 million compared to $0.4 million for the fourth quarter of 2009, mainly a result of our aggressive sales growth.
Gross Profit for 2010 was $20.0 million compared to $15.6 million in 2009, a 28% increase. Total gross profit for our Programmer's Paradise segment was $6.3 million compared to $5.7 million in 2009, representing a 12% increase. Total gross profit for our Lifeboat segment was $13.7 million compared to $9.9 million in 2009, representing a 38% increase. Vendor rebates and discounts for 2010 amounted to $2.4 million compared to $1.0 million for 2009, mainly a result of our aggressive sales growth.
Total gross profit, as a percentage of net sales, for the fourth quarter of 2010 was 9.6%, compared to 10.3% in the fourth quarter of 2009.
The increase in gross profit dollars and the decrease in gross profit margin as a percentage of net sales was primarily caused by the aggressive sales growth within our Lifeboat segment, competitive pricing pressure in both segments, and also in part by our having won several large bids based on aggressive pricing, which we plan to continue to do.
Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2010 were $3.8 million, compared to $3.0 million in the fourth quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.6 million.
On February 1, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 18, 2011 to shareholders of record on February 8, 2011.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers, as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Acronis, CA, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, and VMware.
Additional information can be found by visiting www.waysidetechnology.com.
The statements in this release concerning the Company's future prospects are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties could cause actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general and other factors. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.
-- Tables Follow --
This conference call will be available via live webcast -- in listen-mode only -- at www.earnings.com. A replay will also be available on the company's website at www.waysidetechnology.com.
Cash and marketable securities amount to $15.5 million, representing 58% of equity as of December 31, 2010.
Net sales for the fourth quarter of 2010 increased 54% or $22.6 million to $64.9 million compared to $42.3 million for the same period in 2009. Total sales for the fourth quarter of 2010 for our Lifeboat segment were $45.8 million compared to $28.9 million in the fourth quarter of 2009, representing a 58% increase. Total sales for the fourth quarter of 2010 for our Programmer's Paradise segment were $19.1 million compared to $13.4 million in the fourth quarter of 2009, representing a 43% increase.
Net sales for 2010 increased 41% or $60.3 million to $206.7 million compared to $146.4 million in 2009. Total sales for our Lifeboat segment were $149.2 million compared to $98.1 million in 2009, representing a 52% increase. Total sales for the Programmer's Paradise segment in 2010 amounted to $57.6 million, compared to $48.3 million in 2009, representing a 19% increase.
"The fourth quarter of 2010 was a tremendous success for us," said Simon F. Nynens, Chairman and Chief Executive Officer. "Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings."
Gross Profit for the quarter ended December 31, 2010 was $6.2 million compared to $4.4 million for the fourth quarter of 2009, a 43% increase. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.1 million in the fourth quarter of 2009, representing a 39% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment, as well as vendor rebates and discounts earned. Total gross profit for our Programmer's Paradise segment was $1.9 million compared to $1.3 million in the fourth quarter of 2009, representing a 53% increase. This increase was primarily due to the increased sales volume. Vendor rebates and discounts for the quarter ended December 31, 2010 amounted to $0.9 million compared to $0.4 million for the fourth quarter of 2009, mainly a result of our aggressive sales growth.
Gross Profit for 2010 was $20.0 million compared to $15.6 million in 2009, a 28% increase. Total gross profit for our Programmer's Paradise segment was $6.3 million compared to $5.7 million in 2009, representing a 12% increase. Total gross profit for our Lifeboat segment was $13.7 million compared to $9.9 million in 2009, representing a 38% increase. Vendor rebates and discounts for 2010 amounted to $2.4 million compared to $1.0 million for 2009, mainly a result of our aggressive sales growth.
Total gross profit, as a percentage of net sales, for the fourth quarter of 2010 was 9.6%, compared to 10.3% in the fourth quarter of 2009.
The increase in gross profit dollars and the decrease in gross profit margin as a percentage of net sales was primarily caused by the aggressive sales growth within our Lifeboat segment, competitive pricing pressure in both segments, and also in part by our having won several large bids based on aggressive pricing, which we plan to continue to do.
Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2010 were $3.8 million, compared to $3.0 million in the fourth quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.6 million.
On February 1, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 18, 2011 to shareholders of record on February 8, 2011.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (NASDAQ:WSTG - News) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers, as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Acronis, CA, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, and VMware.
Additional information can be found by visiting www.waysidetechnology.com.
The statements in this release concerning the Company's future prospects are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties could cause actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general and other factors. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.
-- Tables Follow --
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
December 31, December 31,
2010 2009
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 10,955 $ 8,560
Marketable securities 4,528 7,571
Accounts receivable, net 42,486 27,040
Inventory - finished goods 1,164 967
Prepaid expenses and other current assets 1,250 998
Deferred income taxes 516 677
------------ ------------
Total current assets 60,899 45,813
Equipment and leasehold improvements, net 545 432
Accounts receivable long-term 6,866 6,901
Other assets 37 38
Deferred income taxes 336 483
------------ ------------
Total assets $ 68,683 $ 53,667
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 41,791 $ 29,230
Current portion - capital lease obligation 75 -
------------ ------------
Total current liabilities 41,866 29,230
Long term portion - capital lease obligation 138 -
Other liabilities - 78
------------ ------------
Total liabilities 42,004 29,308
------------ ------------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 10,000,000
shares authorized, 5,284,500 shares
issued, and 4,770,241 and 4,688,844 shares
outstanding, respectively 53 53
Additional paid-in capital 25,473 24,826
Treasury stock, at cost, 514,259 and 595,656
shares, respectively (3,570) (3,555)
Retained earnings 4,267 2,727
Accumulated other comprehensive income 456 308
------------ ------------
Total stockholders' equity 26,679 24,359
------------ ------------
Total liabilities and stockholders' equity $ 68,683 $ 53,667
============ ============
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Year ended Three months ended
December 31, December 31,
2010 2009 2010 2009
--------- --------- -------- ---------
(Unaudited) (Unaudited)
Revenues
Lifeboat segment $ 149,151 $ 98,058 $ 45,814 $ 28,927
Programmer's Paradise segment 57,579 48,326 19,122 13,365
--------- --------- -------- ---------
Total Revenue 206,730 146,384 64,936 42,292
Cost of sales
Lifeboat segment 135,448 88,117 41,538 25,849
Programmer's Paradise segment 51,272 42,674 17,175 12,092
--------- --------- -------- ---------
Total Cost of sales 186,720 130,791 58,713 37,941
--------- --------- -------- ---------
Gross Profit 20,010 15,593 6,223 4,351
Operating expenses
Selling costs 6,867 5,516 2,010 1,508
Stock based compensation 1,187 893 295 236
Other general and administrative
expenses 5,153 4,910 1,531 1,272
--------- --------- -------- ---------
Total Selling, general and
administrative expenses 13,207 11,319 3,836 3,016
--------- --------- -------- ---------
Income from operations 6,803 4,274 2,387 1,335
Interest income, net 405 521 89 118
Realized foreign exchange gain
(loss) 2 - (1) 1
--------- --------- -------- ---------
Income before income tax provision 7,210 4,795 2,475 1,454
Provision for income taxes 2,789 1,928 990 554
--------- --------- -------- ---------
Net income $ 4,421 $ 2,867 $ 1,485 $ 900
========= ========= ======== =========
Net income per common share -
Basic $ 1.01 $ 0.65 $ 0.34 $ 0.20
========= ========= ======== =========
Net income per common share -
Diluted $ 0.98 $ 0.65 $ 0.33 $ 0.20
========= ========= ======== =========
Weighted average common shares
outstanding - Basic 4,386 4,399 4,405 4,397
========= ========= ======== =========
Weighted average common shares
outstanding - Diluted 4,500 4,427 4,569 4,430
========= ========= ======== =========Disclosure I am long WSTG shares.
Weekly Dividend Links
Let’s get started!
1. Combining Technicals with Fundamentals @ Frank Voisin.
2. Rethinking the Basic Emergency Fund @ The Dividend Pig.
3. 5 Signs You Need To Take the Yuan Seriously @ Get Money Energy.
4. The Beginners Investing Guide @ Buy Like Buffet.
5. Paying The Bills As a Blogger @ PIN.
6. Your Personal Rate of Inflation @ Oblivious Investor.
7. Non-Buy Follow-Ups @ Barel Karsan.
8. Covidien (COV) Dividend Stock Analysis @ Dividend Monk.
9. 10 Higher Yield Dividend Stocks @ Dividends Value.
10. How Warren Buffett Invests @ Investor Junkie.
1. Combining Technicals with Fundamentals @ Frank Voisin.
2. Rethinking the Basic Emergency Fund @ The Dividend Pig.
3. 5 Signs You Need To Take the Yuan Seriously @ Get Money Energy.
4. The Beginners Investing Guide @ Buy Like Buffet.
5. Paying The Bills As a Blogger @ PIN.
6. Your Personal Rate of Inflation @ Oblivious Investor.
7. Non-Buy Follow-Ups @ Barel Karsan.
8. Covidien (COV) Dividend Stock Analysis @ Dividend Monk.
9. 10 Higher Yield Dividend Stocks @ Dividends Value.
10. How Warren Buffett Invests @ Investor Junkie.
Blackrock Health Sciences (BME): Safe haven in a 'healthly' ETF Closed End Fund
"The current market volatility makes us want to run for shelter, a safe haven," notes Richard Lehmann, editor of The ETF Investor. One such haven he sees is health science, and offers an ETF for the sector.
"Other than Treasury bonds, which have their own risks, cash is certainly the safest. One might think of gold or natural resources as a safe haven, but once economies slow down, demand there will fall as well. Either way these safe havens are likely to be volatile in the near future.
"The health care sector is not as dependent on the overall economy and may be a safe harbor for now. There are a number of ETF's and closed end funds that cover this sector.
"The one we find most compelling is the Blackrock Health Sciences Trust (NYSE: BME) mainly because it captures the value in volatility by writing options on their holdings. The option writing activity moderates price swings and adds income to the fund.
"It invests in healthcare providers, healthcare equipment, pharmaceuticals and biotech companies. The fund is currently trading at $27.80 a –6.84% discount from its net asset value. The yield is 5.53%, which helps as an additional cushion. The expense ratio is high at 1.13%, but is somewhat offset by the –6.84% discount from net asset value."
The BlackRock Health Sciences Trust, BME, is a perpetual closed-end equity fund. BME commenced operations in March 2005 with the investment objective of providing total return through a combination of current income and capital appreciation. Under normal market conditions, the Trust will invest at least 80% of its total assets in equity securities of companies engaged in the health sciences and related industries and equity derivatives with exposure to the health sciences industry. Companies in the health sciences industry include health care providers as well as businesses involved in researching, developing, producing, distributing or delivering medical, dental, optical, pharmaceutical or biotechnology products, supplies, equipment or services or that provide support services to these companies. Equity securities in which the Trust anticipates investing include common stocks, preferred stocks, convertible securities, warrants, depository receipts and equity interests in real estate investment trusts that own hospitals.
Disclosure I am long BME shares and purchasing more shares next week.
| Notice The Awesome Dividend History Above |
"Other than Treasury bonds, which have their own risks, cash is certainly the safest. One might think of gold or natural resources as a safe haven, but once economies slow down, demand there will fall as well. Either way these safe havens are likely to be volatile in the near future.
"The health care sector is not as dependent on the overall economy and may be a safe harbor for now. There are a number of ETF's and closed end funds that cover this sector.
"The one we find most compelling is the Blackrock Health Sciences Trust (NYSE: BME) mainly because it captures the value in volatility by writing options on their holdings. The option writing activity moderates price swings and adds income to the fund.
| For the love of GOD I can see a thing Wrong with this track record!~! |
Strategy & Objective
The BlackRock Health Sciences Trust, BME, is a perpetual closed-end equity fund. BME commenced operations in March 2005 with the investment objective of providing total return through a combination of current income and capital appreciation. Under normal market conditions, the Trust will invest at least 80% of its total assets in equity securities of companies engaged in the health sciences and related industries and equity derivatives with exposure to the health sciences industry. Companies in the health sciences industry include health care providers as well as businesses involved in researching, developing, producing, distributing or delivering medical, dental, optical, pharmaceutical or biotechnology products, supplies, equipment or services or that provide support services to these companies. Equity securities in which the Trust anticipates investing include common stocks, preferred stocks, convertible securities, warrants, depository receipts and equity interests in real estate investment trusts that own hospitals.
Disclosure I am long BME shares and purchasing more shares next week.
Sunday, January 30, 2011
7 Companies Increasing Dividends Last Week
It was another big week for income-oriented dividend stock investors, as a bevy of high-profile corporate names upped their payouts. Dividend stocks raising their yields include Intel (NASDAQ: INTC), Time Warner Cable Inc. (NYSE: TWC), Potash Corp. of Saskatchewan (NYSE: POT), Norfolk Southern Corp. (NYSE: NSC), Praxair Inc. (NYSE: PX), Parker Hannifin Corp. (NYSE: PH) and Limited Brands (NYSE: LTD).
Perhaps the biggest name on the list of dividend winners last week was semiconductor marker Intel (NASDAQ: INTC). The chipmaker and tech bellwether boosted its dividend payments by the largest amount in five years while also adding $10 billion to its stock buy-back plans. The company raised its quarterly dividend to 18.12 cents per share, a 15% increase from the previous quarter. The additional $10 billion for share repurchases brings the overall buyback authorization to $14.2 billion. Intel said the dividend is payable March 1 to shareholders of record as of Feb. 7.
In addition to the big tech sector dividend bump, we also saw a spike in dividends from the entertainment sector. Cable TV provider Time Warner Cable Inc. (NYSE: TWC) raised its dividend last week, declaring a quarterly payout of 48 cents per share. That figure represents a 20% increase over its prior dividend. News of the dividend boost came as Time Warner Cable reported better-than-expected fourth-quarter earnings. The new payout from the second-largest U.S. cable-television operator will be handed out on March 15 to shareholders of record on Feb. 26.
Agriculture stars also shined this week, as fertilizer and feed products provider Potash Corp. of Saskatchewan (NYSE: POT) announced that its board of directors had approved a three-for-one stock split of its outstanding common shares. Under the terms of the deal, shareholders will receive two additional shares for each share owned as of Feb. 16. Now, in addition to the split, Potash made the deal even more interesting by increasing their quarterly cash dividend to 21 cents a share from 10 cents a share on a pre-split basis. The company also declared a quarterly cash dividend of 7 cents per common share on a post-split basis, which is payable May 5 to shareholders of record on April 14.
The transportation sector also saw representation in the array of companies raising dividends last week.
Railroad operator Norfolk Southern Corp. (NYSE: NSC) upped its quarterly dividend 11% to 40 cents a share from 36 a share. The dividend increase was the second since the transportation giant boosted its payout by 2 cents a share in July. This year’s dividend increase is nearly double the 6% dividend increase from Norfolk Southern in 2010. The increased dividend will be payable on March 10 to shareholders of record as of Feb. 4. One day after declaring the increased dividend, Norfolk Southern Corp. said its fourth quarter profit rose 31%. The strong performance of late in the railroad industry, including Norfolk Southern competitors CSX Corp. (NYSE: CSX) and Union Pacific Corp. (NYSE: UNP), bodes well for this traditionally strong dividend-paying sector.
Industrial gases firm Praxair Inc. (NYSE: PX) raised its dividend by 11% despite reporting fourth-quarter profit that fell 61% on tax charges. Charges aside, however, the company actually saw better-than-expected revenue from cost-cutting and growing sales in emerging markets. The global giant’s new dividend will be 50 cents per share, and it will be payable March 15 to shareholders of record as of March 7. Dividend increases are all too common for Praxair. The most recent bump is its 18th consecutive annual dividend increase.
Another global industrial powerhouse spreading the wealth to shareholders is Parker Hannifin Corp. (NYSE: PH). The company increased its quarterly cash dividend to 32 cents per share, payable on March 4 to shareholders of record as of Feb. 10. The new dividend represents a 10% increase over the previous quarterly dividend of 29 cents per common share. Although Parker Hannifin’s profit margins in the most recent quarter fell, the company — seen as a barometer for the entire global industrial segment — still managed to dish out the cash to investors.
Fashion retailer Limited Brands (NYSE: LTD) proved it can combine the concepts “sexy” and “dividends” with its latest announcement. The company, which operates intimate apparel specialty store Victoria’s Secret as well as the Bath & Body Works and La Senza retail chains, said it was increasing its annual dividend by 20 cents to 80 cents per share. The first quarterly payment at the new rate will take place on March 11 to shareholders of record on Feb. 25. Now income investors can slip into something a little more comfortable that includes a sweet quarterly cash bonus.
Disclosure I am long UNP, NSC, and INTC.
Perhaps the biggest name on the list of dividend winners last week was semiconductor marker Intel (NASDAQ: INTC). The chipmaker and tech bellwether boosted its dividend payments by the largest amount in five years while also adding $10 billion to its stock buy-back plans. The company raised its quarterly dividend to 18.12 cents per share, a 15% increase from the previous quarter. The additional $10 billion for share repurchases brings the overall buyback authorization to $14.2 billion. Intel said the dividend is payable March 1 to shareholders of record as of Feb. 7.
Agriculture stars also shined this week, as fertilizer and feed products provider Potash Corp. of Saskatchewan (NYSE: POT) announced that its board of directors had approved a three-for-one stock split of its outstanding common shares. Under the terms of the deal, shareholders will receive two additional shares for each share owned as of Feb. 16. Now, in addition to the split, Potash made the deal even more interesting by increasing their quarterly cash dividend to 21 cents a share from 10 cents a share on a pre-split basis. The company also declared a quarterly cash dividend of 7 cents per common share on a post-split basis, which is payable May 5 to shareholders of record on April 14.
The transportation sector also saw representation in the array of companies raising dividends last week.
Railroad operator Norfolk Southern Corp. (NYSE: NSC) upped its quarterly dividend 11% to 40 cents a share from 36 a share. The dividend increase was the second since the transportation giant boosted its payout by 2 cents a share in July. This year’s dividend increase is nearly double the 6% dividend increase from Norfolk Southern in 2010. The increased dividend will be payable on March 10 to shareholders of record as of Feb. 4. One day after declaring the increased dividend, Norfolk Southern Corp. said its fourth quarter profit rose 31%. The strong performance of late in the railroad industry, including Norfolk Southern competitors CSX Corp. (NYSE: CSX) and Union Pacific Corp. (NYSE: UNP), bodes well for this traditionally strong dividend-paying sector.
Industrial gases firm Praxair Inc. (NYSE: PX) raised its dividend by 11% despite reporting fourth-quarter profit that fell 61% on tax charges. Charges aside, however, the company actually saw better-than-expected revenue from cost-cutting and growing sales in emerging markets. The global giant’s new dividend will be 50 cents per share, and it will be payable March 15 to shareholders of record as of March 7. Dividend increases are all too common for Praxair. The most recent bump is its 18th consecutive annual dividend increase.
Another global industrial powerhouse spreading the wealth to shareholders is Parker Hannifin Corp. (NYSE: PH). The company increased its quarterly cash dividend to 32 cents per share, payable on March 4 to shareholders of record as of Feb. 10. The new dividend represents a 10% increase over the previous quarterly dividend of 29 cents per common share. Although Parker Hannifin’s profit margins in the most recent quarter fell, the company — seen as a barometer for the entire global industrial segment — still managed to dish out the cash to investors.
Fashion retailer Limited Brands (NYSE: LTD) proved it can combine the concepts “sexy” and “dividends” with its latest announcement. The company, which operates intimate apparel specialty store Victoria’s Secret as well as the Bath & Body Works and La Senza retail chains, said it was increasing its annual dividend by 20 cents to 80 cents per share. The first quarterly payment at the new rate will take place on March 11 to shareholders of record on Feb. 25. Now income investors can slip into something a little more comfortable that includes a sweet quarterly cash bonus.
Disclosure I am long UNP, NSC, and INTC.
Wednesday, January 19, 2011
Deere: A Growth Stock Consistently Hiking Its Dividend
Over the past year, we have repeatedly stated how bullish we are of various commodities, especially rare earths, uranium and potash. Some investors believe that many commodities have run their course, and have minimal upside remaining while possessing considerable downside from current highs. Although we disagree with this thinking, we respect the conservative approach and help our clients find ‘de-risked’ plays to participate in bull markets. We believe that conservative investors who believe that the future may not be all roses for the fertilizer industry may find Deere & Company (DE) a suitable alternative.
The company has been around since 1897, back when it was making plows for the family farm. Generations of farmers have used Deere & Company equipment to plow, plant and harvest their fields. John Deere is one of those brands and businesses that Warren Buffett would love as it has a cult following for its equipment in rural America and quality machinery to back the brand up. They have set the bar high, and the barrier to entry keeps many from entering their home market here in the United States.
The stock currently trades just below its 52-week high of 89.97 and sports a price-to-earnings ratio of about 20 on a trailing twelve months basis. This is also a company currently paying a yearly dividend of $1.40 per share, or roughly a 1.6% yield. We expect that the company will raise the dividend twice this year based off of their operating results.
We believe that the company will be able to raise the dividend rates further this year due to strong earnings growth resulting from the bumper harvests these farmers are having in the United States. Here in South Carolina, we noticed fields of cotton not getting harvested on time and watched in amazement as the farmers allowed the crop to deteriorate. As it turns out, these were the farmers who pay others to harvest their crops, and thus do not own their own equipment; sometimes there are co-ops that perform this function as well. We did notice something very exciting driving through cotton country recently; many of these farmers had erected huge metal sheds which made us scratch our heads at the time. Why erect these huge sheds so far from your house to simply park a few old pick-ups beneath? It turns out that all these farmers had purchased brand new John Deere tractors, combines and many accessories. Some of them have easily spent one million plus on all of this.
The same commodity bull market that is fueling the likes of Potash Corporation (POT) of Saskatchewan, Mosaic (MOS) and Agrium (AGU) shares higher is also behind Deere & Company’s rise. As the world awakens to the fact that we need to increase food production in order to feed the growing population, productivity will become key. Many of the world’s breadbaskets already use the most advanced techniques, technologies and equipment, but much of the developing world continues to farm the same way generations before them did.
As China, India, Brazil, South Korea and the other emerging/developing economies of the world establish these large co-ops (at home and abroad) to grow crops for their citizens, Deere & Company should gain huge orders internationally.
Currently, analysts expect Deere to report earnings of $5.45/share for the current year. Estimates for 2012 call for earnings per share of $6.40. If the company can at least match these expectations, investors will have a blue chip stock providing significant upside in the share price because of near 20% profit growth.
Deere & Company possesses a great brand with competent management and a business model that should enable it to assist further generations of farmers in providing for the world. It is truly rare to find a company that can grow both the top and bottom line considerably year-over-year (enough to be considered a growth stock), consistently hike its dividend and provide international exposure to some of the hottest economies while being an American company and thus protecting investors from many of the inherent risks of investing with the unscrupulous managements of foreign entities that exist out there. The safety of an American based and traded company cannot be underestimated in these times; this lets many of our conservative investors sleep at night.
It is our opinion that Deere & Company is both a solid play for conservative investors and a derivative play on food inflation, both in the short-term and long-term. The company’s shares could potentially reach the $120/share range by year-end if the company can continue to perform well on an operating basis while also expanding the P/E. Should the commodity boom continue on the world’s farms, Deere’s shares could take off, potentially allowing shareholders to harvest tremendous gains.
Disclosure: I am long DE shares
The company has been around since 1897, back when it was making plows for the family farm. Generations of farmers have used Deere & Company equipment to plow, plant and harvest their fields. John Deere is one of those brands and businesses that Warren Buffett would love as it has a cult following for its equipment in rural America and quality machinery to back the brand up. They have set the bar high, and the barrier to entry keeps many from entering their home market here in the United States.The stock currently trades just below its 52-week high of 89.97 and sports a price-to-earnings ratio of about 20 on a trailing twelve months basis. This is also a company currently paying a yearly dividend of $1.40 per share, or roughly a 1.6% yield. We expect that the company will raise the dividend twice this year based off of their operating results.
We believe that the company will be able to raise the dividend rates further this year due to strong earnings growth resulting from the bumper harvests these farmers are having in the United States. Here in South Carolina, we noticed fields of cotton not getting harvested on time and watched in amazement as the farmers allowed the crop to deteriorate. As it turns out, these were the farmers who pay others to harvest their crops, and thus do not own their own equipment; sometimes there are co-ops that perform this function as well. We did notice something very exciting driving through cotton country recently; many of these farmers had erected huge metal sheds which made us scratch our heads at the time. Why erect these huge sheds so far from your house to simply park a few old pick-ups beneath? It turns out that all these farmers had purchased brand new John Deere tractors, combines and many accessories. Some of them have easily spent one million plus on all of this.
The same commodity bull market that is fueling the likes of Potash Corporation (POT) of Saskatchewan, Mosaic (MOS) and Agrium (AGU) shares higher is also behind Deere & Company’s rise. As the world awakens to the fact that we need to increase food production in order to feed the growing population, productivity will become key. Many of the world’s breadbaskets already use the most advanced techniques, technologies and equipment, but much of the developing world continues to farm the same way generations before them did.
As China, India, Brazil, South Korea and the other emerging/developing economies of the world establish these large co-ops (at home and abroad) to grow crops for their citizens, Deere & Company should gain huge orders internationally.
Currently, analysts expect Deere to report earnings of $5.45/share for the current year. Estimates for 2012 call for earnings per share of $6.40. If the company can at least match these expectations, investors will have a blue chip stock providing significant upside in the share price because of near 20% profit growth.
Deere & Company possesses a great brand with competent management and a business model that should enable it to assist further generations of farmers in providing for the world. It is truly rare to find a company that can grow both the top and bottom line considerably year-over-year (enough to be considered a growth stock), consistently hike its dividend and provide international exposure to some of the hottest economies while being an American company and thus protecting investors from many of the inherent risks of investing with the unscrupulous managements of foreign entities that exist out there. The safety of an American based and traded company cannot be underestimated in these times; this lets many of our conservative investors sleep at night.
It is our opinion that Deere & Company is both a solid play for conservative investors and a derivative play on food inflation, both in the short-term and long-term. The company’s shares could potentially reach the $120/share range by year-end if the company can continue to perform well on an operating basis while also expanding the P/E. Should the commodity boom continue on the world’s farms, Deere’s shares could take off, potentially allowing shareholders to harvest tremendous gains.
Disclosure: I am long DE shares
Saturday, January 15, 2011
4 Small REITs Delivering FAT Dividends
Real Estate Investment Trusts as a whole have performed very well over the last two years with the Dow Jones Equity All REIT Index up 28.47% in 2009 and 22.15% through November 30 of this year. REITs are no longer a deep value investment, but still may be enough of a value to add income to your portfolio.
Below is a high level overview of four small capitalization REITs that get very little coverage and are currently rewarding shareholders with large payouts.
First Real Estate Investment Trust of New Jersey (FREVS.OB) may be one of the most off the radar quality REITs that exists. Likely a result of its small size and that it does not trade on a major exchange. Based in Hackensack, New Jersey, the trust owns a mix of primarily retail commercial properties and residential apartments in New Jersey, New York, and Maryland. The trust was formed in 1961 and still holds several properties purchased in the sixties and seventies which are on the books for well under the current market value.
Funds From Operations were down year over year for the period ended July 31, 2010. The trust should be releasing its year ended October 31, 2010 annual report in the next 30-40 days which should give some direction as to how the recovery is progressing in the trust’s areas of operations.
The stock price has recovered and is trading in the middle of its 52 week range and at less than half of the highs the stock hit in 2005. While I do not expect it to get back to 2005 levels anytime in the near future, it has a strong yield at 6.7% and should have some upside price potential as the economy and real estate improve.
Whitestone REIT (WSR) is a relatively new player to the public markets making its debut on August 26, 2010. The trust targets what it has titled Community Center Properties™ which it defines as visibly located properties in established or developing culturally diverse neighborhoods. The trust primarily owns retail and other commercial properties located in Houston, Dallas, San Antonio, Phoenix and Chicago.
The trust has been busy since its IPO acquiring The Citadel, a Class A property in Scottsdale, Arizona with 28,547 square feet in September and Sunnyslope Village, a Class B property in Phoenix, Arizona with 111,227 square feet. Management believes it has acquired both of these properties significantly below their respective replacement costs.
The trust has $27 million in cash and 14 unencumbered properties on its balance sheet which should give the it the flexibility it needs to acquire and upgrade existing properties. The trust appears to be making timely investments that should add to the bottom line as the economy improves. Whitestone is currently trading at the high end of its 52 week range and is yielding 8.17%.
Monmouth Real Estate Investment Corp. (MNR) owns nearly 7,000,000 square feet of industrial space located in 25 states and has been in operation since 1968. The trust prides itself on the quality of its tenant’s such as Coca Cola (KO), Anheuser-Busch (BUD), Caterpillar (CAT), Mead Paper (MWV), Sherwin Williams (SHW) and Federal Express (FDX). Of these high quality tenants, 49% of its rentable square feet was leased to Federal Express and subsidiaries. This certainly adds concentration risk to the trust’s portfolio.
The trust has been actively acquiring additional properties over the last year purchasing 4 properties totaling 838,000 square feet in fiscal year ended September 30, 2010 for $53,140,000 and 2 more properties totaling 448,000 square feet for approximately $20,350,000 so far in fiscal 2011. The trust plans to pursue additional acquisitions throughout fiscal 2011.
The trust also owns a $42.5 million investment portfolio of primarily common and preferred REIT stocks including a small position Mission West Properties (MSW). The three largest holdings which make up 28% of the total value are UMH Properties, Inc. (UMH), Sun Communities, Inc. (SUI), and Getty Realty Corporation (GTY).
The trust is currently trading at the high-end of its 52 week range and yields 7%.
Mission West Properties Inc. (MSW) is a very focused REIT in that it owns and operates 112 properties totaling approximately 8.1 million square feet in the Silicon Valley area of San Francisco. Most of portfolio properties are commercial R&D properties that are typically leased to technology firms. Among the trust’s more noteworthy tenants are Microsoft (MSFT), Apple (AAPL), NEC (NIPNF.PK), NVIDIA (NVDA), and Stryker Corporation (SYK).
The company has not been an aggressive acquirer of property in recent years. To date, they have only acquired one property during 2010. Funds From Operations were a little soft in the most recent quarter ended September 30, 2010 which may put the current dividend in jeopardy. In order for the trust to grow and protect its dividend it is important to see an improving business environment in the Silicon Valley. The trust still has major vacancies within its portfolio and has leases of nearly 740,000 rentable square feet rolling over in 2011 and another million in 2012.
This investment carries a higher degree of risk given the size of the trust, but it is currently paying you an 8.66% yield for the risk. Patient investors could be rewarded, but must be prepared for the dividend to be cut. The trust did receive a buyout offer of $13.55 per share in cash in July of 2007. Of course we know what has happened to real estate since that time and would not expect a similar offer in today’s environment.
Disclosure: I am long WSR shares. I receive no compensation to write about any specific stock, sector or theme.
Below is a high level overview of four small capitalization REITs that get very little coverage and are currently rewarding shareholders with large payouts.
First Real Estate Investment Trust of New Jersey (FREVS.OB) may be one of the most off the radar quality REITs that exists. Likely a result of its small size and that it does not trade on a major exchange. Based in Hackensack, New Jersey, the trust owns a mix of primarily retail commercial properties and residential apartments in New Jersey, New York, and Maryland. The trust was formed in 1961 and still holds several properties purchased in the sixties and seventies which are on the books for well under the current market value.
Funds From Operations were down year over year for the period ended July 31, 2010. The trust should be releasing its year ended October 31, 2010 annual report in the next 30-40 days which should give some direction as to how the recovery is progressing in the trust’s areas of operations.
The stock price has recovered and is trading in the middle of its 52 week range and at less than half of the highs the stock hit in 2005. While I do not expect it to get back to 2005 levels anytime in the near future, it has a strong yield at 6.7% and should have some upside price potential as the economy and real estate improve.
Whitestone REIT (WSR) is a relatively new player to the public markets making its debut on August 26, 2010. The trust targets what it has titled Community Center Properties™ which it defines as visibly located properties in established or developing culturally diverse neighborhoods. The trust primarily owns retail and other commercial properties located in Houston, Dallas, San Antonio, Phoenix and Chicago.
The trust has been busy since its IPO acquiring The Citadel, a Class A property in Scottsdale, Arizona with 28,547 square feet in September and Sunnyslope Village, a Class B property in Phoenix, Arizona with 111,227 square feet. Management believes it has acquired both of these properties significantly below their respective replacement costs.
The trust has $27 million in cash and 14 unencumbered properties on its balance sheet which should give the it the flexibility it needs to acquire and upgrade existing properties. The trust appears to be making timely investments that should add to the bottom line as the economy improves. Whitestone is currently trading at the high end of its 52 week range and is yielding 8.17%.
Monmouth Real Estate Investment Corp. (MNR) owns nearly 7,000,000 square feet of industrial space located in 25 states and has been in operation since 1968. The trust prides itself on the quality of its tenant’s such as Coca Cola (KO), Anheuser-Busch (BUD), Caterpillar (CAT), Mead Paper (MWV), Sherwin Williams (SHW) and Federal Express (FDX). Of these high quality tenants, 49% of its rentable square feet was leased to Federal Express and subsidiaries. This certainly adds concentration risk to the trust’s portfolio.
The trust has been actively acquiring additional properties over the last year purchasing 4 properties totaling 838,000 square feet in fiscal year ended September 30, 2010 for $53,140,000 and 2 more properties totaling 448,000 square feet for approximately $20,350,000 so far in fiscal 2011. The trust plans to pursue additional acquisitions throughout fiscal 2011.
The trust also owns a $42.5 million investment portfolio of primarily common and preferred REIT stocks including a small position Mission West Properties (MSW). The three largest holdings which make up 28% of the total value are UMH Properties, Inc. (UMH), Sun Communities, Inc. (SUI), and Getty Realty Corporation (GTY).
The trust is currently trading at the high-end of its 52 week range and yields 7%.
Mission West Properties Inc. (MSW) is a very focused REIT in that it owns and operates 112 properties totaling approximately 8.1 million square feet in the Silicon Valley area of San Francisco. Most of portfolio properties are commercial R&D properties that are typically leased to technology firms. Among the trust’s more noteworthy tenants are Microsoft (MSFT), Apple (AAPL), NEC (NIPNF.PK), NVIDIA (NVDA), and Stryker Corporation (SYK).
The company has not been an aggressive acquirer of property in recent years. To date, they have only acquired one property during 2010. Funds From Operations were a little soft in the most recent quarter ended September 30, 2010 which may put the current dividend in jeopardy. In order for the trust to grow and protect its dividend it is important to see an improving business environment in the Silicon Valley. The trust still has major vacancies within its portfolio and has leases of nearly 740,000 rentable square feet rolling over in 2011 and another million in 2012.
This investment carries a higher degree of risk given the size of the trust, but it is currently paying you an 8.66% yield for the risk. Patient investors could be rewarded, but must be prepared for the dividend to be cut. The trust did receive a buyout offer of $13.55 per share in cash in July of 2007. Of course we know what has happened to real estate since that time and would not expect a similar offer in today’s environment.
Disclosure: I am long WSR shares. I receive no compensation to write about any specific stock, sector or theme.
Arlington Asset Investment Corp. Declares $0.60 per Share Dividend for the Fourth Quarter of 2010
Arlington Asset Investment Corp. (NYSE:AI - News) today announced that its Board of Directors declared a quarterly dividend of $0.60 per share for the fourth quarter of 2010. The dividend will be payable on January 31, 2011 to shareholders of record on December 31, 2010. During the fourth quarter of 2010, the Company repurchased 20,969 shares of its Class A common stock at an average price of $23.96 per share. The Company now has remaining authorization to repurchase up to 256,185 shares of its Class A common stock under its current repurchase program.
About the Company
Arlington Asset Investment Corp. (NYSE:AI) is a principal investment firm that invests primarily in mortgage-related assets. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com. Statements concerning future performance, returns, plans and steps to position the Company to realize value, and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances.
These factors include, but are not limited to, changes in interest rates, increased costs and reduced availability of borrowing, decreased interest spreads, changes in default rates, preservation of our net operating loss and net capital loss carry-forwards, impacts of regulatory changes and changes to Fannie Mae and Freddie Mac, availability of opportunities that meet or exceed our risk adjusted return expectations, ability and willingness to make future dividends, ability to generate sufficient cash through retained earnings to satisfy capital needs, ability to grow book value, changes in mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, continuation or cessation of share repurchases, changes in tax rates and laws, available technologies, competition for business and personnel, and general economic, political, regulatory and market conditions.
These and other risks are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that are available from the Company and from the SEC and you should read and understand these risks when evaluating any forward-looking statement.
Disclosure I am long AI shares for at least a year.
About the Company
Arlington Asset Investment Corp. (NYSE:AI) is a principal investment firm that invests primarily in mortgage-related assets. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com. Statements concerning future performance, returns, plans and steps to position the Company to realize value, and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances.
These factors include, but are not limited to, changes in interest rates, increased costs and reduced availability of borrowing, decreased interest spreads, changes in default rates, preservation of our net operating loss and net capital loss carry-forwards, impacts of regulatory changes and changes to Fannie Mae and Freddie Mac, availability of opportunities that meet or exceed our risk adjusted return expectations, ability and willingness to make future dividends, ability to generate sufficient cash through retained earnings to satisfy capital needs, ability to grow book value, changes in mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, continuation or cessation of share repurchases, changes in tax rates and laws, available technologies, competition for business and personnel, and general economic, political, regulatory and market conditions.
These and other risks are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that are available from the Company and from the SEC and you should read and understand these risks when evaluating any forward-looking statement.
Disclosure I am long AI shares for at least a year.
Saturday, November 13, 2010
Intel Announces 15 Percent Increase to Quarterly Cash Dividend
Intel Corporation today announced that its board of directors has approved a 15 percent increase in the quarterly cash dividend to 18 cents per share (72 cents per share on an annual basis), beginning with the dividend that will be declared in the first quarter of 2011.
"Intel remains on track to have our best year ever and we continue to generate strong cash flows," said Paul Otellini, Intel president and CEO. "Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders."
Intel began paying a cash dividend in 1992 and has paid out approximately $20 billion to its shareholders in dividends. Intel cash dividends for the first through third quarters of 2010 total approximately $2.6 billion.
Intel (INTC 21.53) , the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com.
Disclosure I am Long INTC shares.
"Intel remains on track to have our best year ever and we continue to generate strong cash flows," said Paul Otellini, Intel president and CEO. "Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders."Intel began paying a cash dividend in 1992 and has paid out approximately $20 billion to its shareholders in dividends. Intel cash dividends for the first through third quarters of 2010 total approximately $2.6 billion.
Intel (INTC 21.53) , the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com.
Disclosure I am Long INTC shares.
Wednesday, November 10, 2010
Ask.com admits it isn't the answer
Its corporate parent will severely downsize the search engine, saying it can't compete against other search engines, especially Google.
Ask.com, the Internet search engine that media mogul Barry Diller acquired for $1.85 billion to compete with Google (GOOG), is cutting 130 engineering jobs and conceding much of its search business to competitors.
Ask.com, a unit of Diller’s IAC/InterActiveCorp (IACI), is firing engineers based in Edison, N.J., and Hangzhou, China. It's ceasing work on its algorithmic search technology, according to Ask.com President Doug Leeds.
Ask.com, a unit of Diller’s IAC/InterActiveCorp (IACI), is firing engineers based in Edison, N.J., and Hangzhou, China. It's ceasing work on its algorithmic search technology, according to Ask.com President Doug Leeds.
IAC shares fell 1.3% to $28.30 in regular trading today but rallied 1.6% to $28.75 after hours.
Leeds said Google has become too powerful a competitor to justify Ask.com’s continued pursuit of those search users.
Leeds said Google has become too powerful a competitor to justify Ask.com’s continued pursuit of those search users.
Disclosure None
Tuesday, November 9, 2010
Baxter Raises Quarterly Dividend
DEERFIELD, Ill., Nov 09, 2010 (BUSINESS WIRE) -- The Board of Directors of Baxter International Inc. /quotes/comstock/13*!bax/quotes/nls/bax (BAX 51.63, -0.04, -0.08%) today declared a quarterly dividend of $0.31 per Baxter common share. This represents an increase of approximately 7 percent over the previous quarterly rate of $0.29 per share. The dividend is payable on January 5, 2011, to shareholders of record as of the close of business on December 10, 2010.
Baxter continues to generate strong cash flow and has returned significant value to shareholders in the form of dividends and share repurchases. Since the beginning of 2010, Baxter has returned approximately $2.0 billion to shareholders through dividends totaling $688 million and share repurchases of approximately $1.3 billion (or 26 million shares).
"Our disciplined capital allocation strategy and ongoing ability to generate strong cash flow allow us to continue to invest for the long-term while returning significant value to our shareholders," said Robert J. Hombach, chief financial officer.
Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the company's dividend. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: continued strength in the company's financial position, including cash flows; future decisions of the board of directors of the company to continue payments to shareholders in the form of a dividend on a quarterly or other basis relative to alternative uses of funds; and other risks identified in the company's most recent filing on Form 10-K and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements.
SOURCE: Baxter International Inc.
Disclosure I am long BAX shares
Baxter continues to generate strong cash flow and has returned significant value to shareholders in the form of dividends and share repurchases. Since the beginning of 2010, Baxter has returned approximately $2.0 billion to shareholders through dividends totaling $688 million and share repurchases of approximately $1.3 billion (or 26 million shares).
"Our disciplined capital allocation strategy and ongoing ability to generate strong cash flow allow us to continue to invest for the long-term while returning significant value to our shareholders," said Robert J. Hombach, chief financial officer.
Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the company's dividend. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: continued strength in the company's financial position, including cash flows; future decisions of the board of directors of the company to continue payments to shareholders in the form of a dividend on a quarterly or other basis relative to alternative uses of funds; and other risks identified in the company's most recent filing on Form 10-K and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements.
SOURCE: Baxter International Inc.
Disclosure I am long BAX shares
Tuesday, July 6, 2010
Van Eck Plans First Ever Minor Metals ETF
One section of the ETF world that has seen rapid expansion over the past year has been commodity producing equity ETFs. As investors have embraced ETFs as a means of establishing exposure to natural resource prices, many are beginning to realize that a host of commodities are thinly-traded, and therefore not suitable for “pure play” futures-based or physically-backed ETFs. Due to this, investors have seen the introduction of several funds offering exposure to commodities through stocks of companies engaged in their production and extraction, including ETFs that target copper miners, platinum mining companies, and even timber producers.
One interesting new idea is being developed from Van Eck is to target companies that are engaged in the mining and production of so called ‘minor metals’ such as titanium and cobalt. While these metals are very thinly traded, they remain absolutely vital to a host of current and emerging technologies. In a filing with the SEC, Van Eck identifies several key technologies that utilize these commodities, including cellular phones, high performance batteries, flat screen televisions, and green energy technology such as wind, solar and geothermal. These metals are critical to the future of hybrid and electric cars, high-tech military applications including radar, missile guidance systems, navigation and night vision, and superconductors and fiber-optic communication systems.
As these technologies have grown in importance to every day life, demand for these metals has surged, sending some prices sharply higher. Additionally, political and environmental issues are likely to be front-and-center for many of the equities in this fund, especially due to recent mining tax proposals out of Australia as well as increasing government scrutiny over hazardous industries such as mining. Even more crucially for the equities in the proposed fund is a recent plan from China that seeks to ban exports of certain minerals–a development that could be devastating since China produces just over 90% of the world’s rare Earth metals. However, it could help to spur more investment in the industry and send prices higher.
The fund will track the Minor Metals Index and will hold 30 securities in total, and would be the thirtieth ETF from Van Eck. This new addition would also bring the total number of ETFs in the Commodity Producers Equities ETFdb Category up to 20 in total and offer investors exposure to a slice of the commodity market to which most do not currently have access. The expense ratio and symbol remain a mystery.
Disclosure: None
One interesting new idea is being developed from Van Eck is to target companies that are engaged in the mining and production of so called ‘minor metals’ such as titanium and cobalt. While these metals are very thinly traded, they remain absolutely vital to a host of current and emerging technologies. In a filing with the SEC, Van Eck identifies several key technologies that utilize these commodities, including cellular phones, high performance batteries, flat screen televisions, and green energy technology such as wind, solar and geothermal. These metals are critical to the future of hybrid and electric cars, high-tech military applications including radar, missile guidance systems, navigation and night vision, and superconductors and fiber-optic communication systems.
As these technologies have grown in importance to every day life, demand for these metals has surged, sending some prices sharply higher. Additionally, political and environmental issues are likely to be front-and-center for many of the equities in this fund, especially due to recent mining tax proposals out of Australia as well as increasing government scrutiny over hazardous industries such as mining. Even more crucially for the equities in the proposed fund is a recent plan from China that seeks to ban exports of certain minerals–a development that could be devastating since China produces just over 90% of the world’s rare Earth metals. However, it could help to spur more investment in the industry and send prices higher.
The fund will track the Minor Metals Index and will hold 30 securities in total, and would be the thirtieth ETF from Van Eck. This new addition would also bring the total number of ETFs in the Commodity Producers Equities ETFdb Category up to 20 in total and offer investors exposure to a slice of the commodity market to which most do not currently have access. The expense ratio and symbol remain a mystery.
Disclosure: None
Wednesday, September 9, 2009
Is China the Key to Stock ETFs in September?
When mainland Chinese stocks drop 5% or more on a given day, world markets take notice. Similarly, when China ETFs or Chinese stock markets fall 20% from their highs, investors start to get nervous.
Nevertheless, when it comes to the future’s most dominant economic force, “green shoots” can bloom in any season. During the precarious pullback in June, the iShares China 25 Index (FXI) found support at the 50-day moving average before rocketing higher yet again.
Still, we’re about to see the first breakdown of technical support since March… when the 6-month, world stock rally began. With FXI falling roughly 1.2% on Monday, August 31, 2009, the popular benchmark breached the short-term, 50-day moving average.
Ditto for SPDR S&P China (GXC) and PowerShares Golden Dragon China (PGJ). Again, we haven’t seen the China ETFs below 50-day trendlines since March… when they were moving the other direction!
Should we even be concerned that the Shanghai Composite over on the mainland is down 20%… or that it has fallen below a longer-term 125-day support line? I think we may need to perk up!
Consider the following reality: The 6-month cyclical bull for worldwide stock assets began in China. Its stimulus package focused 75% of its $550 billion directly on infrastructure, which required a host of natural resources from iron ore to nickel. China went on to purchase resources and companies in countries from Brazil to Australia, and the re-inflation of the global industrial cycle seemed to begin anew.
It follows that we must consider the impact of falling equity prices in China. Would the rest of the world really have investor confidence were it not for China, Southeast Asia and expectations for emerging market growth?
It’s fine to celebrate the 6 consecutive months of gains for the S&P 500 and the Nasdaq. What’s more, we may decide that a 1% Monday selloff from recent highs is “no big deal.”
However, I myself am particularly wary of developed market ETFs after an unprecedented winning streak. Not only should we expect a correction, but we may need to see conviction on the part of emerging market investors (a la “buying the dips”). Meanwhile, keep a firm handle on your stop-loss protection.
Hey… it’s a different world out there. It used to be whatever happens in the U.S. markets, the rest of the world had to take notice. Today, whatever happens in China… the U.S./Europe need to take notice.
Disclosure I am long FXI shares.
Nevertheless, when it comes to the future’s most dominant economic force, “green shoots” can bloom in any season. During the precarious pullback in June, the iShares China 25 Index (FXI) found support at the 50-day moving average before rocketing higher yet again.
Still, we’re about to see the first breakdown of technical support since March… when the 6-month, world stock rally began. With FXI falling roughly 1.2% on Monday, August 31, 2009, the popular benchmark breached the short-term, 50-day moving average.
Ditto for SPDR S&P China (GXC) and PowerShares Golden Dragon China (PGJ). Again, we haven’t seen the China ETFs below 50-day trendlines since March… when they were moving the other direction!
Should we even be concerned that the Shanghai Composite over on the mainland is down 20%… or that it has fallen below a longer-term 125-day support line? I think we may need to perk up!
Consider the following reality: The 6-month cyclical bull for worldwide stock assets began in China. Its stimulus package focused 75% of its $550 billion directly on infrastructure, which required a host of natural resources from iron ore to nickel. China went on to purchase resources and companies in countries from Brazil to Australia, and the re-inflation of the global industrial cycle seemed to begin anew.
It follows that we must consider the impact of falling equity prices in China. Would the rest of the world really have investor confidence were it not for China, Southeast Asia and expectations for emerging market growth?
It’s fine to celebrate the 6 consecutive months of gains for the S&P 500 and the Nasdaq. What’s more, we may decide that a 1% Monday selloff from recent highs is “no big deal.”
However, I myself am particularly wary of developed market ETFs after an unprecedented winning streak. Not only should we expect a correction, but we may need to see conviction on the part of emerging market investors (a la “buying the dips”). Meanwhile, keep a firm handle on your stop-loss protection.
Hey… it’s a different world out there. It used to be whatever happens in the U.S. markets, the rest of the world had to take notice. Today, whatever happens in China… the U.S./Europe need to take notice.
Disclosure I am long FXI shares.
Tuesday, September 8, 2009
Why Cancer Research Could Benefit Pharma ETFs
Billions of dollars are being poured into cancer-fighting drugs. But it’s not just to find a cure – it’s also to gain market share in one of the most untapped markets, from a pharmaceutical standpoint. The related ETFs could benefit no matter which company discovers a drug first.
After largely ignoring the disease, virtually every large pharmaceutical company seems to have discovered cancer now that more about the disease is known. A substantial portion of the smaller biotechnology companies are focused on it, as well. Combined, the two industries are pumping billions of dollars into the development of drugs to fight off the disease, reports Andrew Pollack for The New York Times.
Two industry trends are pushing the move:
- Recent scientific discoveries have suggested new targets for cancer drug researchers to attack
- Drug companies are experiencing declining profits from staple drugs such as Lipitor; the high prices that cancer drugs can command are proving to be alluring
- Cancer patients are often desperate for drugs while insurers could face outrage if they denied payments, so drug makers can charge hefty sums for medicines – even those that don’t work very well
Gardener Harris for The New York Times reports that a settlement has been reached regarding the pharmaceutical giant Pfizer (PFE) over the company’s illegal promotion of its now-withdrawn painkiller, Bextra. The $2.3 billion fine is the largest-ever levied for Medicare and Medicaid fraud, and the agreement also includes some promotional practices involving other Pfizer drugs — Zyvox, Geodon and Lyrica.
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