Canadian stocks fell, erasing earlier gains after a six-day rally, as a slump in commodity shares overshadowed a Bank of Canada decision to remove its bias toward tightening monetary policy.
BlackPearl Resources Inc. and Suncor Energy Inc., the nation�� largest oil producer, fell more than 2.2 percent as crude dropped to its lowest in almost four months. Teck Resources Ltd. (TCK/B) lost 1 percent as copper retreated after surging interest rates eroded the outlook for demand in China. Canadian National Railway Co. and Canadian Pacific Railway Ltd. rallied to all-time highs after posting better-than-estimated earnings.
The Standard & Poor��/TSX Composite Index (SPTSX) fell 4.74 points, or less than 0.1 percent, to 13,243.32 at 4 p.m. in Toronto, erasing an earlier advance of 0.5 percent. The benchmark Canadian equity gauge rallied 2.8 percent in the previous six days, reaching a two-year high.
��he attention is shifting to some concerns on the actual global economy, so that�� definitely weighing on oil prices,�� Youssef Zohny, portfolio manager at Stenner Investment Partners of Richardson GMP Ltd., said by phone from Vancouver. Richardson GMP manages about C$16 billion ($15.4 billion). ��esources and commodities still make up almost half the index, so any weakness in the commodity space should feed its way into the TSX index.��
Best Mid Cap Stocks For 2015: 3M Company(MMM)
3M Company, together with subsidiaries, operates as a diversified technology company worldwide. The company?s Industrial and Transportation segment offers tapes, coated and non-woven abrasives, adhesives, specialty materials, filtration products, energy control products, closure systems for personal hygiene products, acoustic systems products, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles. Its Health Care segment provides medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. The company?s Display and Graphics offers optical film solutions for LCD electronic displays; computer screen filters; reflective sheeting for transportation safety; commercial graphics sheeting and systems; and mobile interactive solutions, includin g mobile display technology, visual systems products, and computer privacy filters. The company?s Consumer and Office segment provides office supply products, stationery products, construction and home improvement products, home care products, protective material products, certain consumer retail personal safety products, and consumer health care products. Its Safety, Security and Protection Services segment offers personal protection products, safety and security products, cleaning and protection products for commercial establishments, track and trace solutions, and roofing granules for asphalt shingles. The company?s Electro and Communications segment provides packaging and interconnection devices; fluids that are used in the manufacture of computer chips, and for cooling electronics and lubricating computer hard disk drives; high-temperature and display tapes; insulating materials, including tapes and resins; and related items. The company was founded in 1902 and is based in St. Paul, Minnesota.
Advisors' Opinion:- [By CFA Institute Contributors]
3M Co. (MMM)
3M is a diversified, mature company and a good illustration of how to tackle the equity risk premium and assumptions about terminal value. Damodaran joked that 12 September 2008 was his "last day of innocence" because it was the Friday before the U.S. Treasury department decided the fate of Lehman Brothers. The Monday after the investment bank collapsed, market premiums were drastically different than the week before. To capture this, Damodaran calculates a market implied equity risk premium derived from modifying a yield-to-maturity formula to account for the value of the S&P 500 using projected future cash flows. He argues that the conventional practice of using Ibboston data for the equity risk premium not only doesn't capture the dynamic premium investors require to invest in stocks over risk-free assets, but it also has such a high standard error as to make the data meaningless.
- [By Alex Planes]
Tale of the tape
3M (NYSE: MMM ) is a Jack-of-all-manufacturing-trades for the Dow. The Minnesota-based company (the first "M" stands for its state of origin) will soon reach its 37th Dow-niversary, and it will celebrate as it typically does: by working hard to develop innovative new industrial products. Since its founding in 1902, 3M has become a leading producer of a wide range of products, including bandages, cleaning products, paint, filtration, and sticky notes. 3M's consistency will make it a formidable opponent to its challenger... - [By Ben Levisohn]
After last week’s record high, the S&P 500 looked poised for a breakout. Then reality took over, as Russian troops landed in Ukraine, world markets shuddered, and U.S. stocks followed suit thanks to drops in 3M (MMM), Visa (V) and Walt Disney (DIS).
Top Canadian Companies To Watch For 2014: Ritchie Bros. Auctioneers Incorporated(RBA)
Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada.
Advisors' Opinion:- [By Chris Hill]
Caterpillar's (NYSE: CAT ) �first-quarter profit�fell 45% and the company lowered guidance. But its CEO said that his confidence is at a two-year high and sales in China rose. Should investors buy the stock? In this installment, our analysts discuss Caterpillar's future and explain why Ritchie Bros. Auctioneers (NYSE: RBA ) could be a hidden winner.
Top Canadian Companies To Watch For 2014: Waste Management Inc.(WM)
Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.
Advisors' Opinion:- [By Laura Brodbeck]
Tuesday
Earnings Expected From: Waste Management, Inc. (NYSE: WM), Johnson Controls, Inc. (NYSE: JCI), Electronic Arts Inc. (NASDAQ: EA), LinkedIn Corporation (NYSE: LNKD), Nokia Corporation (NYSE: NOK) Economic Releases Expected: �US consumer confidence, US PPI, Canadian PPI, British mortgage approvals and consumer credit, French consumer confidenceWednesday
- [By Helix Investment Research]
We note that Keating Capital's co-investors in many of its portfolio companies are not simply other venture capital or existing investors, but strategic investors as well. Examples include Agilyx, where Waste Management (WM) is a co-investor, BrightSource, where Chevron (CVX) and BP (BP) are co-investors, Kabam, where Google (GOOG) and Intel (INTC) are co-investors, or Tremor Video (TRMR), where Time Warner (TWX) is a co-investor. As of the end of Q2 2013, 9 (excluding Jumptap) of Keating Capital's portfolio companies had unrealized gains, with an average gain of 25.6% (again excluding Jumptap, which had unrealized gains of 8% as of the end of Q2 2013). The remaining 6 companies had an average loss of 44.46%. However, on an overall basis, Keating Capital's portfolio currently has an average unrealized gain of 2.15%. While this is not a large gain, we note that the bulk of Keating Capital's profits are realized upon exiting an investment in conjunction with the portfolio company's IPO or sale. Furthermore, portions of Keating Capital's portfolio are defended by structurally protected appreciation clauses that the company has struck with its portfolio companies, clauses that are not reflected on its balance sheet. These clauses, which are negotiated between Keating Capital and its portfolio companies, allow the company to receive shares in the portfolio company's IPO at a discount, or grant it warrants to purchase additional shares in an IPO for a nominal price. Since inception, Keating Capital has negotiated structurally protected appreciation clauses in 11 of the 20 companies it has invested in. As of the end of Q2 2013, 6 of Keating Capital's 15 portfolio companies were protected by structurally protected appreciation clauses, representing $22 million in total capital (almost 43% of the company's invested capital), thereby entitling Keating Capital to a weighted-average aggregate value of 1.9x its investment at the time of an IPO.
- [By Arjun Sreekumar]
Others are using it right here in the U.S. to power trucks and other vehicles. Waste Management (NYSE: WM ) , for instance, has amassed a sizable fleet consisting of 2,000 trucks powered by compressed natural gas, or CNG. It even recently opened a new CNG fueling station in Bristol, Pa., to help fuel its growing fleet, as well as to provide fueling options for the public. �
- [By Geoff Gannon]
For example, a company involved in a mundane business like running hair salons ��like Regis (RGS), dentist offices ��like Birner Dental (BDMS), grocery stores ��like Village Supermarket (VLGEA), or garbage dumps ��like Waste Management (WM), may be easy to estimate as essentially a no-growth business.
Top Canadian Companies To Watch For 2014: Ventas Inc. (VTR)
Ventas, Inc. is a publicly owned real estate investment trust. The firm engages in investment, management, financing, and leasing of properties in the healthcare industry. It invests in the real estate markets of the United States and Canada. The firm primarily invests in healthcare-related facilities including hospitals, skilled nursing facilities, senior housing facilities, medical office buildings, and other healthcare related facilities. Ventas, Inc. was founded in 1983 and is based in Chicago, Illinois with additional offices in Louisville, Kentucky and Dallas, Texas.
Advisors' Opinion:- [By Justin Loiseau]
Health or wealth -- why not both?
Cliffs Natural Resources and Caterpillar shares could continue their adjustments today, but investors will also need to keep an eye on Ventas' (NYSE: VTR ) 10 a.m. EDT earnings report. The health care REIT's shares have moved from 5% gains to a 12% drop over the last three months, and year-to-date gains clock in at 6.8% so far.
Top Canadian Companies To Watch For 2014: China Metro-Rural Holdings Limited(CNR)
China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.
Advisors' Opinion:- [By Katie Brennan]
Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.
Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.
Top Canadian Companies To Watch For 2014: Franklin Covey Company (FC)
Franklin Covey Co. provides training and consulting solutions to address leadership, execution, productivity, trust, customer loyalty, sales performance, and education problems worldwide. The company also offers clients with training in management skills, relationship skills, and individual effectiveness, as well as personal-effectiveness literature and electronic educational solutions. In addition, it sells a suite of individual-effectiveness and leadership-development training products; and books, e-books, audio media, downloadable and paper-based tools, content-rich software applications for smart phones and other handheld devices, training accessories, and other related products. The company delivers its products and services through onsite presentations, facilitators, international licensees, e-learning, public workshops, custom solutions, intellectual property licenses, and media publishing methods to organizational clients, including corporations, governmental agenc ies, educational institutions, and other organizations, as well as individual clients. Franklin Covey Co. was founded in 1983 and is headquartered in Salt Lake City, Utah.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Franklin Covey (NYSE: FC ) , whose recent revenue and earnings are plotted below. - [By Seth Jayson]
Franklin Covey (NYSE: FC ) reported earnings on July 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 1 (Q3), Franklin Covey beat expectations on revenues and beat expectations on earnings per share.
Top Canadian Companies To Watch For 2014: UniSource Energy Corporation(UNS)
UniSource Energy Corporation engages in the electric generation and energy delivery businesses. The company?s TEP segment generates, transmits, and distributes electricity to approximately 403,000 retail electric customers, including residential, commercial, industrial, and public sector customers in southeastern Arizona. It also sells electricity to other utilities and power marketing entities. As of December 31, 2010, this segment owned or leased 2,245 MW of net generating capacity, as well as owned or participated in electric transmission and distribution system consisting of 512 circuit-miles of 500-kV lines; 1,087 circuit-miles of 345-kV lines; 379 circuit-miles of 138-kV lines; 478 circuit-miles of 46-kV lines; and 2,621 circuit-miles of lower voltage primary lines. TEP segment generates electricity from coal, gas, oil, and solar sources. The company?s UNS Gas segment distributes gas to approximately 146,500 retail customers in Mohave, Yavapai, Coconino, and Navajo c ounties in northern Arizona, as well as Santa Cruz County in southeastern Arizona. As of December 31, 2010, this segment?s transmission and distribution system consisted of approximately 30 miles of steel transmission mains, 4,211 miles of steel and plastic distribution piping, and 136,439 customer service lines. The company?s UNS Electric segment transmits and distributes electricity to approximately 91,000 retail customers consisting of residential, commercial, and industrial customers in Mohave and Santa Cruz counties. As of December 31, 2010, UNS Electric?s transmission and distribution system consisted of approximately 56 circuit-miles of 115-kV transmission lines, 271 circuit-miles of 69-kV transmission lines, and 3,599 circuit-miles of underground and overhead distribution lines. This segment also owns the 65 MW Valencia plant, as well as 39 substations having an installed capacity of 1,788,050 kilovolt amperes. The company was founded in 1902 and is based in Tucson, Arizona.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading UP
UNS Energy (NYSE: UNS) shot up 27.75 percent to $58.56 after the company agreed to be acquired by Fortis Utility Group for $60.25 per share in cash. - [By David Dittman]
And with its December 2013 offer to buy Arizona-based UNS Energy Corp (NYSE: UNS) for $2.5 billion in cash St. John’s, Newfoundland and Labrador-based Fortis Inc (TSX: FTS, OTC: FRTSF), making its second foray in the US in two years, signaled its interest in regulated utility assets in states with favorable population and economic trends as a means of driving its growth going forward.
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