Julie Young

Long/short equity
Julie Young
Long/short equity
Contributor since: 2012
Thank you for the comments. Much appreciated. In this case the comparisons were to show the drastic oil price affects.
Thank you for the comment. Mike Schutz refers to security and also answers many of the questions below in his discussion at the Deutsche Bank 2015 Technology Brokers Conference.
The jobs report Friday was not especially great and financial stocks are going to fluctuate until there is more certainty on the timing of a rate increase.
Thank you for the comment. In general, I think they can be referred to as equity stock, however I will definitely use the term MLP going forward.
COP is a good investment. It is an independent so it has different characteristics. I think it has more capital flexibility as an independent and especially with its current project cycles. The dividend yield is also impressive.
Next year’s estimate for earnings per share is $2.13. There are 5,117 outstanding shares. Tablet sales could help revenue but I don’t think earnings per share is going to get to $4.
The business is black and white. The PC market is strong in 2014. Have a look at some of the NASDAQ technology companies and maybe Open Consortium Network will be relevant.
Could be similar to a new processor if it improves efficiency. What are your thoughts on it?
Yes that's revenue from 15% market share.
Thank you for the comment. I did not report on GE's fourth quarter earnings but here are some links you might find interesting.
The integration of Climate, Controls and Security was successful. The operating profit margin improved to 17% in the second quarter.
I think the Climate, Controls and Security consolidation with Otis is good too. They’ll be able to present a more unified solution for building systems management.
They might discuss the synergies in more detail during the third quarter earnings conference call.
Every situation is different so in this case there are a few factors that make the sale of Zoetis beneficial. First, the product portfolio. Streamlining the product portfolio to focus on human health drugs is going to help improve expenses, economies of scale supports that. Second, Pfizer’s revenue and earnings are struggling.
This excerpt provides a little more detail:
Pfizer reported a top line revenue decline of 7% from the comparable quarter and a 10% decline in full year 2012 revenue from the previous year. Adjusted net income was also down 7% from the comparable quarter and 2012 full year net income was down 8% from the previous year.
So, the sale of Zoetis gives Pfizer a little more flexibility in its investment and Zoetis still has the support of Pfizer through the Class B common stock.
Home Depot’s 2013 free cash flow is a little unpredictable. In order to cover capital spending, dividends and share repurchases it is probably going to have to issue debt in 2013. I would consider a higher price target once its plans on that are disclosed.
There has been some recently announced opposition to the corporate governance structure which will be voted on at the next shareholder meeting. Additional information can be found at the following link.
The price hasn’t changed much since Cisco's earnings announcement. Given the Technology sector’s competition and evolution these acquisitions fall at a good time for the company, helping to increase market share in key segments.
Thanks for the comments.
I think the main reason for the sale is the difference in drug types. Pfizer wants to focus on human health drugs and Zoetis is an animal health drug company so it gives Pfizer a more pure product focus.
More details on Pfizer’s holdings after the IPO can be found at this link http://bit.ly/1270Crk in The Offering section.
Some additional value for Pfizer shareholders could also include a distribution, noted in the filing.
The Distribution
Pfizer has informed us that, following this offering, it may make a tax-free distribution to its stockholders of all or a portion of its remaining equity interest in us, which may include one or more distributions effected as a dividend to all Pfizer stockholders, one or more distributions in exchange for Pfizer shares or other securities, or any combination thereof.
I appreciate the comment. In this situation past performance is not an indication of future results. XOM is expanding its production focus in the U.S. which should help it to capture a greater share of the U.S. oil production potential highlighted in economists' industry research.
Chevron is battling lawsuits in Ecuador, Canada, Argentina, Brazil and Nigeria so that's going to have an effect on profit margins.
The price targets favor Exxon over Chevron and in this case I think Exxon has more upside potential in 2013.
Thanks for your comment. The market outlook in the earnings presentation is pretty comprehensive and 7% global demand growth seems realistic given China’s continued expansion and the 6% global demand growth in 2012.
Alcoa is the world’s largest supplier of aluminum so their operational capability in the futures market is going to help them continue to achieve superior pricing. Downstream products are also on slide 24 and the CEO seems confident in their ability to capture market share there as well.
Given the company’s supplier capabilities and the realistic global demand projections it seems like they should realize a good portion of the demand for aluminum and aluminum products in 2013.
Interesting comment. The theory is that consumers spend more when they are more optimistic which helps to improve GDP and corporate earnings. It's included as a factor for the market's year-to-date gains.
Thanks for the comments. I'm going to remain optimistic for a few more weeks because U.S. economic data reports seem pretty good and consumers' sentiment has been improving. I don't think Congress wants another eleventh hour agreement so hopefully that speeds things up. It would be sad to see the year's gains erased by unresolved issues.
There are many obstacles ahead. New reports by the CBO provide some interesting insights.
Thanks for the comments. Here's some additional reading.
Thanks for your comment. In this case the energy sector portfolio is basically just used as a comparison for the S&P 500's energy sector holdings.
Hi Russell. Thank you for your comment and question. The sales report is provided by Autodata Corporation. The link to the report is included in the article.
An increase of 80,000 was not enough to cause a percent change in the rate. More information from the Bureau of Labor Statistics' report can be found at http://1.usa.gov/n7EsqZ.