With shares of International Business Machines (NYSE:IBM) trading around $189, is IBM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s MovementIBM is an information technology company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Technology products and services are in high demand worldwide, as consumers want to be up to speed and companies always need the latest and greatest to stay ahead of the competition. Cloud computing has been hot in recent times, which has not been good news for IBM. Should the company want to hold on to its market share, it needs to make moves quickly and provide the technology products and services that worldwide consumers and companies demand.
IBM announced a $1.2 billion commitment on Friday to build 15 data centers in key financial and geographic hubs as it initiates its first major cloud expansion since acquiring SoftLayer in June for $2 billion.�The cloud expansion will cover 15 countries in five continents (all but Africa and Antarctica), including new data centers in China, Hong Kong, London, Japan, India, Washington D.C., Canada, Mexico City, and Dallas, as well as a number of local “cloud hubs.”
Top 10 Sliver Stocks To Buy Right Now: Brunswick Corp (BC)
Brunswick Corporation (Brunswick), incorporated on December 31, 1907, is a worldwide designer, manufacturer and marketer of recreation products, including marine engines, boats, fitness equipment and bowling and billiards equipment. Brunswick�� engine products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems, and marine parts and accessories. The Company�� boat offerings include fiberglass boats; sportfishing convertibles and motoryachts; offshore fishing boats; aluminum fishing boats, and pontoon and deck boats. Brunswick�� fitness products include both cardiovascular and strength training equipment for the commercial and consumer markets. Brunswick�� bowling products include capital equipment, aftermarket and consumer goods. The Company also sells a range of billiards tables and other gaming tables and accessories. In addition, the Company owns and operates Brunswick bowling family entertainment centers in the United States and other countries. In August 2013, Brunswick Corporation completed the sale of the Hatteras and CABO brands of motoryachts and sportfishing convertibles to Navis HCY Acquisition.
The Company, through its Brunswick Financial Services Corporation (BFS) subsidiary, owns a 49% interest in a joint venture, Brunswick Acceptance Company, LLC (BAC). CDF Ventures, LLC (CDFV), a subsidiary of GE Capital Corporation, owns the remaining 51%. Under the terms of the joint venture agreement, BAC provides secured wholesale inventory floorplan financing to the Company�� engine and boat dealers.
Marine Engine Segment
Mercury Marine manufactures and markets a range of sterndrive propulsion systems, inboard engines and outboard engines under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury SportJet and Mercury Jet Drive, MotorGuide, Axius and Zeus brand names. In addition, Mercury Marine manufactures and markets marine parts and accessories under the Quicksilver, Mercury Precision! Parts, Mercury Propellers, Attwood, Land ����Sea, Kellogg Marine Supply, Diversified Marine Products, Sea Choice and MotorGuide brand names, including marine electronics and control integration systems, steering systems, instruments, controls, propellers, trolling motors, service parts and marine lubricants. Mercury Marine�� sterndrive engines, inboard engines and outboard engines are sold to independent boat builders, local, state and foreign governments, and to the Company�� Boat segment. In addition, Mercury Marine�� outboard engines are sold to end-users through a global network of more than 7,000 marine dealers and distributors, specialty marine retailers and marine service centers.
Mercury Marine, through Cummins MerCruiser Diesel Marine LLC (CMD), a joint venture between Brunswick�� Mercury Marine division and Cummins Marine, a division of Cummins Inc., supplies integrated diesel propulsion systems to the worldwide recreational and commercial marine markets, including the Company�� Boat segment. Mercury Marine manufactures two-stroke OptiMax outboard engines ranging from 75 to 300 horsepower, all of which feature Mercury�� direct fuel injection (DFI) technology, and four-stroke outboard engine include Verado, a collection of supercharged outboards ranging from 150 to 350 horsepower, and Mercury Marine's naturally aspirated four-stroke outboards, ranging from 2.5 to 150 horsepower including the introduction of the 150 FourStroke, which is quickly becoming known for its light weight, fuel efficiency and performance. In addition, most of Mercury�� sterndrive and inboard engines are available with catalyst exhaust monitoring and treatment systems.
Mercury Marine�� sterndrive and outboard engines are produced domestically in Fond du Lac, Wisconsin, with outboard engines also produced internationally in China and Japan. Mercury Marine manufactures 40, 50 and 60 horsepower four-stroke outboard engines in a facility in China, and produces smaller outboard en! gines in ! Japan pursuant to a joint venture with its partner, Tohatsu Corporation. CMD manufactures diesel marine propulsion systems in South Carolina.
Mercury Marine also operates a remanufacturing business for engines and service parts in Wisconsin. In addition, Mercury Marine has an equity ownership interest in a company that manufactures boats under the brand names Bella, Flipper and Aquador in Finland. Mercury Marine also has an interest in a company that manufactures boats under the brand names Bella, Flipper and Aquador in Finland. Mercury Marine�� parts and accessories distribution businesses include Land ����Sea, Kellogg Marine Supply and Diversified Marine Products. These businesses are the distributors of marine parts and accessories throughout North America.
Boat Segment
The Boat Group consists of the boat brands, such Sea Ray yachts, sport yachts, sport cruisers and runabouts; Bayliner sport cruisers and runabouts; Meridian motoryachts; Boston Whaler, Lund and Trophy fiberglass fishing boats, and Crestliner, Cypress Cay, Harris FloteBote, Lowe, Lund, Princecraft, Suncruiser and Triton aluminum fishing, utility, pontoon and deck boats. The Boat Group also includes a commercial and governmental sales unit that sells products to commercial customers, as well as the United States Government and state, local and foreign governments. The Boat Group procures most of its outboard engines, gasoline sterndrive engines and gasoline inboard engines from Brunswick�� Marine Engine segment.
The Boat Group has active manufacturing facilities in Florida, Indiana, Minnesota, Missouri, North Carolina, Tennessee, Canada, Mexico and Portugal, as well as additional inactive manufacturing facilities in Florida, Maryland, North Carolina and Tennessee. The Boat Group utilizes contract manufacturing facilities in Argentina and Poland. The Boat Group has constructed a manufacturing plant in Joinville, Santa Catarina, Brazil, which has nearly 150,000 square feet of man! ufacturin! g space. The Boat Group�� products are sold to end-users through a worldwide network of approximately 2,850 dealers and distributors, each of which carries one or more of Brunswick�� boat brands.
Fitness Segment
Brunswick�� Fitness segment consists of its Life Fitness division (Life Fitness), which designs, manufactures and markets a range of cardiovascular fitness equipment (including treadmills, total body cross-trainers, stair climbers and stationary exercise bicycles) and strength-training equipment under the Life Fitness and Hammer Strength brands. Life Fitness��commercial sales customers include health clubs, fitness facilities operated by professional sports teams, the military, governmental agencies, corporations, hotels, schools and universities. Consumer products are available at specialty retailers, select mass merchants, sporting goods stores, through international distributors, and on Life Fitness��Website. The Fitness segment�� principal manufacturing facilities are located in Illinois, Kentucky, Minnesota and Hungary. Life Fitness distributes its products worldwide from regional warehouses and production facilities.
Bowling & Billiards Segment
The Bowling & Billiards segment consists of the Brunswick Bowling & Billiards division (BB&B). BB&B is a worldwide designer, manufacturer and marketer of bowling products. BB&B's bowling products business designs, manufactures and markets a variety of bowling products, including capital equipment (such as automatic pinsetters and scoring devices), bowling balls and aftermarket products (such as lane machines, pinsetter parts, lane conditioners and lane cleaners). Through licensing arrangements, BB&B also offers an array of bowling consumer products, including bowling shoes, bags and accessories.
BB&B operates 95 bowling centers in the United States, Canada and Europe. BB&B retail bowling centers offer bowling and, depending on size and location, may also offer activities a! nd facili! ties: restaurants, lounges, snack bars, billiards, video and redemption games, laser tag, pro shops and meeting and party rooms. Of the Company's 95 bowling centers, 42 have been converted into Brunswick Zones, which are bowling centers that offer an array of active entertainment activities for its guests. BB&B designs and/or markets billiards tables, table tennis tables, air powered table hockey games, billiard balls, cues and other gaming tables, as well as game room furniture and related accessories, under the Brunswick and Contender brands. BB&B's primary manufacturing and distribution facilities are located in Michigan, Wisconsin, Hungary and Mexico. Brunswick�� bowling and billiards products are sold through a variety of channels, including distributors, dealers, mass merchandisers, bowling centers and retailers, and directly to consumers on the Internet and through other outlets.
Advisors' Opinion:- [By Jeremy Bowman]
What: Shares of Brunswick (NYSE: BC ) were getting fired up today, climbing as much as 12% after issuing a strong quarterly report and improved guidance. �
- [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 Brunswick (NYSE: BC ) , whose recent revenue and earnings are plotted below. - [By Seth Jayson]
Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Brunswick (NYSE: BC ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Brunswick doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 3.0%, and inventory increased 8.4%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue increased 3.7%, and inventory increased 8.4%. Over the sequential quarterly period, the trend looks healthy. Revenue grew 19.9%, and inventory grew 5.0%.
Top 10 Information Technology Stocks To Watch Right Now: Applied Materials Inc.(AMAT)
Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. The company?s Silicon Systems Group segment offers a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. This segment provides systems that perform primary processes used in chip fabrication, including atomic layer deposition, chemical vapor deposition, physical vapor deposition, electrochemical deposition, rapid thermal processing, chemical mechanical planarization, wet cleaning, and wafer metrology and inspection, as well as systems that etch or inspect circuit patterns on masks used in the photolithography process. Its Applied Global Services segment offers products and services designed to enhance the performance and productivity, and reduce the environmental impact of the fab operations of semiconductor, liquid crystal displays (LCDs), and solar P V manufacturers. The company?s Display segment provides products for manufacturing thin film transistor LCDs for televisions, personal computers (PCs), tablet PCs, smartphones, and other consumer-oriented electronic applications. Its Energy and Environmental Solutions segment offers manufacturing systems for the generation and conservation of energy, as well as manufacturing solutions for wafer-based crystalline silicon applications. This segment also provides roll-to-roll vacuum Web coating systems for deposition of a range of films on flexible substrates for functional, aesthetic, or optical properties; and roll-to-roll machine for depositing ultra-thin aluminum films for flexible packaging applications. The company serves manufacturers of semiconductor wafers and chips, flat panel LCDs, solar PV cells and modules, and other electronic devices. Applied Materials, Inc. was founded in 1967 and is headquartered in Santa Clara, California.
Advisors' Opinion:- [By Paul Ausick]
Semiconductor equipment maker Applied Materials Inc. (NASDAQ: AMAT) announced before markets opened on Tuesday that the company�� board has agreed to a merger with Tokyo-traded Tokyo Electron Ltd., another maker of semiconductor manufacturing equipment. The resulting company will be valued at $29 billion. The merger is expected to be completed in the second-quarter of next year, pending approval by shareholders of both companies and various regulators.
- [By Jake L'Ecuyer]
Shares of Applied Materials (NASDAQ: AMAT) got a boost, shooting up 9.31 percent to $17.48 after the company announced its plans to acquire Tokyo Electron in an all-share deal.
- [By Rex Crum]
Semiconductor-equipment maker Applied Materials Inc. (AMAT) �rose more than 7%, to $17.14, after the company said it would acquire Tokyo Electron Ltd. in an-all stock deal. Applied Materials Chief Executive Gary Dickerson will be CEO of the combined company.
- [By Lu Wang]
Red Hat Inc. slumped 12 percent after billings at the largest seller of the Linux operating system trailed estimates. Homebuilders gained 2.3 percent as a group after a report showed home prices increased by the most in more than seven years and Lennar Corp.�� profit beat analyst estimates. Applied Materials Inc. (AMAT) advanced 9.1 percent after agreeing to buy Tokyo Electron Ltd. for about $9.39 billion in stock.
Top 10 Information Technology Stocks To Watch Right Now: Autoliv Inc (ALV)
Autoliv, Inc. (Autoliv) is a holding company. Autoliv is the supplier of automotive safety systems, with a range of product offerings, including modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, safety electronics, whiplash protection systems and child seats, as well as night vision systems, radar and other active safety systems. Autoliv has two main operating segments: airbags/seatbelt (including restraint electronics) products and active safety electronics products. In March 2010, the Company acquired Visteon Corporation's radar system business. In April 2010, the Company acquired Delphi's Occupant Protection Systems (OPS) operations in Korea and China. In addition, in April 2010, Autoliv Inc.'s Automotive Holding AS increased its stake in Norma AS from 51% to 93.74%. Additionally, Skandinaviska Enskilda Banken AB and ING Luxembourg SA sold their 6.67% and 10% stake, respectively, held in Norma AS. In October 2010, the Company acquired 51% interest in Bejing Delpi Automotive Safety Products. In November 2011, the Company acquired the airbag cushion cut&sew assets from Milliken. In June 2012, the Company sold its subsidiary Autoliv Mekan AB to Verktygs Allians i Hassleholm AB.
Autoliv has approximately 80 wholly or partially owned or leased production facilities located in 28 countries, consisting of both component factories and assembly factories. The Company�� component factories manufacture inflators, initiators, textile cushions, webbing materials, electronics, pressed steel parts, springs and overmoulded steel parts used in seatbelt and airbag assembly, seat subsystems, steering wheels and its active safety and night vision systems, and its other safety electronic systems. During the year ended December 31, 2010, Autoliv�� revenues were approximately 67% of airbags and associated products and approximately 33% of seatbelts and associated products. The Company�� markets are in Europe, North A! merica, Asia-Pacific and Japan. Its customers include the car manufacturers.
During 2010, the products manufactured by Autoliv�� consolidated subsidiaries consisted of approximately 121 million complete seatbelt systems (of which approximately 49 million were fitted with pretensioners), approximately 57 million side-impact airbags (including curtain airbags), approximately 28 million frontal airbag modules, approximately 12 million steering wheels, approximately 11 million electronic units (airbag control), approximately 0.4 million active safety systems and 0.1 million night vision systems. Autoliv owns two principal subsidiaries, AAB and Autoliv ASP, Inc. (ASP). Its AAB and ASP are developers, manufacturers and suppliers to the automotive industry of automotive safety systems. AAB and ASP�� products include seatbelts, frontal and side-impact airbags, steering wheels and seat sub-systems, as well as components for such systems.
Advisors' Opinion:- [By Rich Duprey]
In a bid to be more competitive, auto airbag manufacturer Autoliv (NYSE: ALV ) announced yesterday that it will invest $50 million to build a new textile center in China that�will consist of a weaving plant, an airbag cushion plant, and a development center for airbag cushions and textiles.
- [By Monica Gerson]
Autoliv (NYSE: ALV) is projected to report its Q3 earnings at $1.34 per share on revenue of $2.06 billion.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
- [By Inyoung Hwang]
Allianz SE (ALV) fell 1.6 percent to 126.40 euros. Europe�� biggest insurer was cut to neutral from buy at Citigroup Inc., which says earnings growth is limited.
Top 10 Information Technology Stocks To Watch Right Now: AG Mortgage Investment Trust Inc (MITT)
AG Mortgage Investment Trust, Inc., incorporated on March 1, 2011, is a real estate investment trust (REIT)focused on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which it refers to as its target assets. The Company is externally managed and advised by AG REIT Management, LLC.
The Company has invested in residential mortgage-backed securities (RMBS), for which a United States government agency, such as the Government National Mortgage Association (Ginnie Mae), or a federally-chartered corporation, such as the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac), guarantees payments of principal and interest on the securities. Its Agency RMBS investments include mortgage pass-through securities and may include collateralized mortgage obligations (CMOs). Its non-Agency RMBS investments may include fixed-and floating-rate securities, including investment grade and non-investment grade.
Advisors' Opinion:- [By Tim Melvin]
Shares of AG Mortgage Investment Trust (MITT) are down more than 25% so far this year, but CEO David Roberts thinks the REIT will turn the corner sometime soon. He just spend more than $1.1 million to buy shares in the firm after dropping $800,000 back in August buying shares at a slightly higher price. The firm is advised by a subsidiary of Angelo Gordon, the large distressed securities, real estate and private-equity firm.
- [By Jon C. Ogg]
Ag Mortgage Investment Trust (NYSE: MITT) also has a Buy rating, with a target of $19.00, versus a recent price of $17.45. The last book value was $19.78, and the end of August projected book value was $19.58.
- [By Sean Williams]
For this week's round of "Better Know a Stock," I'm going to take a closer look at AG Mortgage Investment Trust (NYSE: MITT ) .
What AG Mortgage Investment Trust does
AG Mortgage Investment Trust is a mortgage real estate investment trust that invests in agency (government-backed) and non-agency (non-government backed) mortgage-backed securities and other real estate-related securities and assets. As of the first quarter, 73.5% of its investment portfolio was tied up in agency residential-MBSes, with the remaining 26.5% made up on non-agency RMBSes, commercial loans, commercial MBSes, and other asset-backed securities.
Top 10 Information Technology Stocks To Watch Right Now: Concurrent Computer Corporation(CCUR)
Concurrent Computer Corporation provides solutions that enable the seamless delivery, management, and monetization of video on any screen. Its screen-independent video delivery and media data solutions create a 360 degree view of the consumer video experience, which is built on video firsts and patented technology. The company provides advanced advertising to customers in the cable, telecommunications, wireless, Web, advertising, and content development industries by harnessing the full potential of video. Its video solutions consist of software, hardware, and services for streaming video and collecting media data based on cross services data aggregation, logistics, and intelligence applications; and real-time products consist of Linux and other real-time operating systems, and software development tools to various companies seeking high-performance, real-time computer solutions in the military, aerospace, financial, and automotive markets around the world. Concurrent Comp uter Corporation was founded in 1966 and is headquartered in Duluth, Georgia.
Advisors' Opinion:- [By Magic Diligence]
Edgewater is an organizational consulting firm, offering technical, HR, and other advisory services. Revenues have been steady, but margins have improved sequentially in each of the last few years. Edgewater is also financially strong, with almost $26 million in cash (32% of market cap), and no debt. With an earnings yield approaching 12%, the stock is legitimately cheap, as well.
Concurrent Computer Corp (CCUR)Concurrent develops high-performance, real-time, multi-screen video solutions, providing "turn-key" solutions including software, hardware, and services. While the company is not really growing revenues (which have been steady at around $70 million for a decade), operating margins have improved substantially in the last few years, the firm has an outstanding, debt-free balance sheet, and the stock now pays a dividend yield approaching 7%. At just a $65 million market cap, Concurrent also looks like attractive acquisition bait for a larger tech company looking to build out its video offerings. The stock is trading near a 52-week low right now, with an earnings yield exceeding 13%.
Top 10 Information Technology Stocks To Watch Right Now: Jasper Mining Corp (JSP)
Jasper Mining Corporation (Jasper) is an exploration-stage company engaged in the exploration for and development of base and precious metals in Canada. Its properties consist of the Vowell Creek property, the Lydy property, the McFarlane property, the Cascade property, the Faith property, the Isintok property, the Alaric property, the Proximal property, the Erie Creek property, the Irony property and Crawford property. The Vowell Creek property consists of 12,750 hectares located approximately 35 kilometers south of Golden, British Columbia. The Cascade property is located approximately 55 kilometers north of the community of Kaslo, British Columbia and is comprised of approximately 1,545 hectares (3,819 acres), on the west side of the Lardeau River. The Irony property is located north of Revelstoke, British Columbia and southwest of Mica Dam, consisting of 2,375 hectares (5,869 acres). The Company's properties include lead, zinc, gold and silver. Advisors' Opinion:- [By Jessica Summers]
India�� S&P BSE Sensex (SENSEX) extended this week�� drop to 3 percent, the most since five days ended March 24. Jindal Steel & Power Ltd. (JSP) plunged 7.6 percent, leading a gauge of 10 metal companies to its lowest close in more than four years. ICICI Bank Ltd. fell to an 11-month low, pacing losses among its peers. The rupee slid 1.1 percent, capping its biggest weekly drop in almost two years.
Top 10 Information Technology Stocks To Watch Right Now: ARMOUR Residential REIT Inc (ARR)
ARMOUR Residential REIT, Inc.( ARMOUR), incorporated on February 5, 2008, is an externally-managed Maryland corporation managed by ARMOUR Residential REIT, Inc. The Company invests primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage backed securities (RMBS). These securities are issued or guaranteed by a United States Government-sponsored entity (GSE), such as the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), or are guaranteed by the Government National Mortgage Administration (Ginnie Mae) collectively, Agency Securities. From time to time, a portion of its portfolio may be invested in unsecured notes and bonds issued by United States Government-chartered entities, collectively, Agency Debt. As of December 31, 2012, Agency Securities account for 100% of its portfolio.
The Company seeks long-term investment returns by investing its equity capital and borrowed funds in its targeted asset class of Agency Securities. The Company�� assets have been invested in Agency Securities or money market instruments, primarily deposits at federally chartered banks. The Company borrows against its Agency Securities using repurchase agreements. Its borrowings generally have maturities that may range from one month or less, up to one year, although occasionally it may enter into longer dated borrowing agreements to more closely match the rate adjustment period of its Agency Securities.
Advisors' Opinion:- [By Thomas Bradshaw]
Armour Residential REIT (ARR) is an interesting REIT that was set up to invest in Agency residential mortgage backed securities. It seems like quite a simple model: buy mortgages that are primarily guaranteed by Fannie Mae (even throw in some Freddie Mac and Ginnie Mae) and hold those to maturity, collecting coupons on the way. Since the assets would be held to maturity, no need to worry about the market value of the securities because we know what the fixed income stream will be and the face value of the securities won't change over time.
- [By Amanda Alix]
It was just about one year ago that QE3 made its debut, and mortgage REITs, particularly agency-only players like Annaly Capital (NYSE: NLY ) , Armour Residential (NYSE: ARR ) , and American Capital Agency (NASDAQ: AGNC ) began moaning about the increased competition for mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.
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