RDC - News and Analysis from Seeking Alpha 'RDC' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/symbol/rdc Rowan Companies, Inc. 3Q09 (Qtr End 9/30/09) Earnings Call Transcript http://seekingalpha.com/article/171002-rowan-companies-inc-3q09-qtr-end-9-30-09-earnings-call-transcript?source=feed 171002 Rowan Companies, Inc. (RDC)

3Q09 (Qtr End 9/30/09) Earnings Call Transcript

November 03, 2009 11:00 ET

]]> Tue, 03 Nov 2009 20:25:16 -0500 Rowan Companies, Inc. (RDC)

3Q09 (Qtr End 9/30/09) Earnings Call Transcript

November 03, 2009 11:00 ET


Complete Story »]]> RDC Thursday Options Update: HGSI, MSTR, INTC, FXI, EFA, AA, AVP, RDC, & PLL http://seekingalpha.com/article/169876-thursday-options-update-hgsi-mstr-intc-fxi-efa-aa-avp-rdc-pll?source=feed 169876 Human Genome Sciences, Inc. (HGSI) – Shares of the biopharmaceutical company made a miraculous recovery since yesterday’s slaughter by exploding 13.25% higher during the session to $20.40. Traders populated various contracts with bullish plays after HGSI was raised to ‘overweight’ from ‘neutral’ with a 12-month target share price of $25.00 at JPMorgan. Heavy call volume in the November contract was likely driven by traders anticipating results of Phase 3 trials employed to evaluate the efficacy of HGSI’s potential drug treatment for lupus, Benlysta. Trading at the November 20/25/30 strike prices mimicked the butterfly spread strategy, and suggests perhaps that traders expect shares to rise to $25.00 by expiration. Investors bought at least 3,500 calls at the November 20 strike for 1.88 apiece as well as purchased 3,500 calls at the November 30 strike for 60 cents each. These contracts effectively mimic the wings of the spread while the 9,000 calls sold at the central November 25 strike perhaps represent the body of the spread. Call spreads were initiated in both the December and January contracts. The December transaction, for example, involved the purchase of 1,000 calls at the December 25 strike for 2.60 each, spread against the sale of 1,000 calls at the higher December 30 strike for 1.00 apiece. The net cost of the trade amounts to 1.60 per contract. Thus, the investor may accumulate maximum potential profits of 3.40 per contract if shares of HGSI rally up to $30.00 by expiration day in December.

Microstrategy, Inc. (MSTR) – The software company appeared on our ‘hot by options volume’ market scanner this afternoon due to bullish options activity. Investors initiated optimistic plays on the stock despite the 1% decline in shares to $73.03. Profit-taking action appeared in the January 2010 contract while fresh positions were taken in the April 2010 contract. It looks like one investor originally purchased 3,600 calls at the now in-the-money January 70 strike for an average premium of between 3.00 to 3.50 per contract back on July 31, 2009. Today the trader sold the calls for a whopping 7.20 apiece. Net profits enjoyed on the closing sale amount to a minimum of 3.70 up to 4.20 each. Thus, total potential profits earned by the trader are anywhere from $1,332,000 to $1,512,000. In the April contract a bullish risk reversal suggests investors expect the stock to rise significantly by expiration. The reversal involved the sale of 3,600 puts at the January 60 strike for 2.45 apiece, spread against the purchase of 3,600 calls at the higher April 85 strike for 3.70 each. The net cost of the transaction amounts to 1.25 per contract. Profits are available in the event that shares surge at least 18% to $86.25 by expiration day in April. We note that shares have not traded higher than $85.00 since April 30, 2008.

]]> Thu, 29 Oct 2009 15:55:07 -0400 Andrew Wilkinson Human Genome Sciences, Inc. (HGSI) – Shares of the biopharmaceutical company made a miraculous recovery since yesterday’s slaughter by exploding 13.25% higher during the session to $20.40. Traders populated various contracts with bullish plays after HGSI was raised to ‘overweight’ from ‘neutral’ with a 12-month target share price of $25.00 at JPMorgan. Heavy call volume in the November contract was likely driven by traders anticipating results of Phase 3 trials employed to evaluate the efficacy of HGSI’s potential drug treatment for lupus, Benlysta. Trading at the November 20/25/30 strike prices mimicked the butterfly spread strategy, and suggests perhaps that traders expect shares to rise to $25.00 by expiration. Investors bought at least 3,500 calls at the November 20 strike for 1.88 apiece as well as purchased 3,500 calls at the November 30 strike for 60 cents each. These contracts effectively mimic the wings of the spread while the 9,000 calls sold at the central November 25 strike perhaps represent the body of the spread. Call spreads were initiated in both the December and January contracts. The December transaction, for example, involved the purchase of 1,000 calls at the December 25 strike for 2.60 each, spread against the sale of 1,000 calls at the higher December 30 strike for 1.00 apiece. The net cost of the trade amounts to 1.60 per contract. Thus, the investor may accumulate maximum potential profits of 3.40 per contract if shares of HGSI rally up to $30.00 by expiration day in December.

Microstrategy, Inc. (MSTR) – The software company appeared on our ‘hot by options volume’ market scanner this afternoon due to bullish options activity. Investors initiated optimistic plays on the stock despite the 1% decline in shares to $73.03. Profit-taking action appeared in the January 2010 contract while fresh positions were taken in the April 2010 contract. It looks like one investor originally purchased 3,600 calls at the now in-the-money January 70 strike for an average premium of between 3.00 to 3.50 per contract back on July 31, 2009. Today the trader sold the calls for a whopping 7.20 apiece. Net profits enjoyed on the closing sale amount to a minimum of 3.70 up to 4.20 each. Thus, total potential profits earned by the trader are anywhere from $1,332,000 to $1,512,000. In the April contract a bullish risk reversal suggests investors expect the stock to rise significantly by expiration. The reversal involved the sale of 3,600 puts at the January 60 strike for 2.45 apiece, spread against the purchase of 3,600 calls at the higher April 85 strike for 3.70 each. The net cost of the transaction amounts to 1.25 per contract. Profits are available in the event that shares surge at least 18% to $86.25 by expiration day in April. We note that shares have not traded higher than $85.00 since April 30, 2008.


Complete Story »]]> AA AVP EFA FXI HGSI INTC MSTR PLL RDC Andrew Wilkinson Tuesday Options Recap http://seekingalpha.com/article/169247-tuesday-options-recap?source=feed 169247 Sentiment

The S&P 500 is flat late-Tuesday following a round of mixed earnings news. Some of the energy-related names, including Dow components Exxon Mobile (XOM) and Chevron (CVX), are seeing gains after BP reported earnings that beat Street estimates and crude oil gained 74 cents to $79.42 a barrel. The Dow Jones Industrial Average is up 40 points heading into the final hour of trading.

However, the tech-heavy NASDAQ is down 20 points after Chinese Internet company Baidu.com (BIDU) fell on earnings news. BIDU is down $52.33 to $380.64 in late-day action.

]]> Tue, 27 Oct 2009 16:30:25 -0400 Frederic Ruffy Frederic Ruffy submits:

Sentiment

The S&P 500 is flat late-Tuesday following a round of mixed earnings news. Some of the energy-related names, including Dow components Exxon Mobile (XOM) and Chevron (CVX), are seeing gains after BP reported earnings that beat Street estimates and crude oil gained 74 cents to $79.42 a barrel. The Dow Jones Industrial Average is up 40 points heading into the final hour of trading.

However, the tech-heavy NASDAQ is down 20 points after Chinese Internet company Baidu.com (BIDU) fell on earnings news. BIDU is down $52.33 to $380.64 in late-day action.


Complete Story »]]> BAC BCRX BIDU CRI CVX EXPE MOT MRVL NBR NVAX PCX RDC RSH SPX WYNN X XOM Frederic Ruffy Seahawk Is in Deep Water http://seekingalpha.com/article/163235-seahawk-is-in-deep-water?source=feed 163235 Seahawk Drilling (HAWK) $34.28 on 9-23-2009

Spinoff: August 24, 2009

Price

]]> Thu, 24 Sep 2009 11:31:38 -0400 Blake Plotz Seahawk Drilling (HAWK) $34.28 on 9-23-2009

Spinoff: August 24, 2009

Price


Complete Story »]]> ESV HAWK HERO IDC PDE RDC Blake Plotz Sales Growth Expectations for Attractive S&P 500 Stocks http://seekingalpha.com/article/161491-sales-growth-expectations-for-attractive-s-p-500-stocks?source=feed 161491 In recent weeks we have written several blogs (S&P 500 sector stock watch, Attractive stocks under $35, with potential investment opportunities, Solid S&P Value Companies, Cheapest Stocks In the S&P 500), discussing investment opportunities within the S&P 500. These stocks ideas all had favorable scores under The Applied Finance Group's (AFG’s) investment criteria, which includes economic performance, valuation, earnings quality and management’s ability to create shareholder wealth, among other criteria.

Another way that AFG identifies potentially attractive investments is through the use of its Value Expectations interface, which helps investors get a better understanding of the expectations embedded into stock prices. This interface allows us to understand the Sales Growth, EBITDA Margin, and Asset Turnover a company has to deliver in the future to justify its current trading price. In theory and in normal circumstances, if the imbedded future performance is very conservative relative to the company’s historical performance, the stock is regarded as undervalued. The table below displays the implied future Sales Growth (“Priced-in Sales Growth) of the companies we have recently recommended in our recent blogs, assuming their EBITDA Margins and Asset Turnovers stay at 5-year median levels.

]]> Tue, 15 Sep 2009 04:48:10 -0400 Value Expectations Value Expectations submits:

In recent weeks we have written several blogs (S&P 500 sector stock watch, Attractive stocks under $35, with potential investment opportunities, Solid S&P Value Companies, Cheapest Stocks In the S&P 500), discussing investment opportunities within the S&P 500. These stocks ideas all had favorable scores under The Applied Finance Group's (AFG’s) investment criteria, which includes economic performance, valuation, earnings quality and management’s ability to create shareholder wealth, among other criteria.

Another way that AFG identifies potentially attractive investments is through the use of its Value Expectations interface, which helps investors get a better understanding of the expectations embedded into stock prices. This interface allows us to understand the Sales Growth, EBITDA Margin, and Asset Turnover a company has to deliver in the future to justify its current trading price. In theory and in normal circumstances, if the imbedded future performance is very conservative relative to the company’s historical performance, the stock is regarded as undervalued. The table below displays the implied future Sales Growth (“Priced-in Sales Growth) of the companies we have recently recommended in our recent blogs, assuming their EBITDA Margins and Asset Turnovers stay at 5-year median levels.


Complete Story »]]> ABT AEP AES APOL AZO BIG BMY BSX CAG CEPH DNB DPS DRI ERTS FIS FISV HAS HRS KR LO NOC PFE PM RDC S SEE STZ SYMC TAP TMO TSO VZ WAT Value Expectations S&P 500: Solid Value Companies http://seekingalpha.com/article/159730-s-p-500-solid-value-companies?source=feed 159730 For those Valueexpectations.com readers who consider themselves value oriented investors, we have provided a good starting list of solid value companies that look attractive as potential investment opportunities for the long term. This list is a good place to start when looking for potential companies to add to your portfolio. The Applied Finance Group (AFG) considers companies with a Market Value/Invested Capital (MV/IC) in the bottom half of the universe as value companies.

To come to our list of attractive potential value plays, we ran those companies in the bottom half of MV/IC through AFG’s buy criteria that includes Economic Margin (how profitable they are), Valuation, Management Quality (how well management is running the business) as well as other quality checks to ensure that these companies are the most likely value companies to outperform. All 10 of these companies ranked above their sector peers in expected improvement of Economic Margins and in valuation attractiveness which has proven to be a good starting point when looking to identify companies likely to outperform their benchmark.

]]> Thu, 03 Sep 2009 03:07:17 -0400 Value Expectations Value Expectations submits:

For those Valueexpectations.com readers who consider themselves value oriented investors, we have provided a good starting list of solid value companies that look attractive as potential investment opportunities for the long term. This list is a good place to start when looking for potential companies to add to your portfolio. The Applied Finance Group (AFG) considers companies with a Market Value/Invested Capital (MV/IC) in the bottom half of the universe as value companies.

To come to our list of attractive potential value plays, we ran those companies in the bottom half of MV/IC through AFG’s buy criteria that includes Economic Margin (how profitable they are), Valuation, Management Quality (how well management is running the business) as well as other quality checks to ensure that these companies are the most likely value companies to outperform. All 10 of these companies ranked above their sector peers in expected improvement of Economic Margins and in valuation attractiveness which has proven to be a good starting point when looking to identify companies likely to outperform their benchmark.


Complete Story »]]> CEPH DPS DRI KR NOC PEG PFE RDC S TAP Value Expectations Rowan Companies Inc Q2 2009 Earnings Call Transcript http://seekingalpha.com/article/153741-rowan-companies-inc-q2-2009-earnings-call-transcript?source=feed 153741 Rowan Companies Inc.

Q2 2009 Earnings Call

August 4 2009, 11:00 am ET

]]> Tue, 04 Aug 2009 17:17:13 -0400 Rowan Companies Inc.

Q2 2009 Earnings Call

August 4 2009, 11:00 am ET


Complete Story »]]> RDC Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/153534-wall-street-breakfast-must-know-news?source=feed 153534

  • BoA's Lewis closer to exit. Bank of America (BAC) reshuffled its senior management yesterday, replacing the head of consumer banking with Brian Moynihan, who had previously run wealth management, and hiring Sallie Krawcheck as the new wealth management chief. The bank is also setting up a five-way competition for a new CEO to replace Ken Lewis "at the appropriate time," with candidates including Moynihan, who is the front runner for the position, Krawcheck, CFO Joe Price, home-lending chief Barbara Desoer and Goldman Sachs veteran Tom Montag. Shares -1.4% premarket (7:00 ET). (Read BoA's press release)
  • BoA settles Merrill suit. Bank of America (BAC) agreed to a $33M settlement with the SEC over charges that it made false and misleading statements to investors about bonuses at Merrill Lynch. The settlement was announced almost immediately after the allegations, which the bank neither confirmed nor denied, but the SEC emphasized it will continue its investigation. Though the $33M payment is high for disclosure-related cases not connected to fraud, the fine seems small compared to the $3.6B in bonuses paid at Merrill in 2008 and damages CEO Ken Lewis' once-golden reputation far more than BoA's bottom line. (Read the SEC's complaint (.pdf) and statement on the settlement)
  • No surprises from UBS loss. UBS (UBS) posted a Q2 net loss of 1.4B Swiss francs ($1.32B), its third consecutive quarterly loss, on costs related to job cuts and charges related to the company's debt. Its wealth and asset management divisions saw outflows of 39.4B francs. CEO Oswald Gruebel said markets improved in the second quarter but a sustainable economic recovery 'is not yet visible.' Shares -8.3% premarket (7:00 ET). (Read UBS' letter to shareholders (.pdf))
  • Bank regulators oppose financial reforms. Several top banking regulators, including the FDIC's Sheila Bair, will testify in Congress today against some key elements of Obama's proposed financial reforms. The regulators feel parts of Obama's plan are unnecessary, and Bair doesn't "see merit or wisdom in consolidating federal supervision" under a single regulator since combining agencies is 'no panacea' for effective oversight. The testimony comes in spite of strongly-worded exhortations from Geithner, who wants regulators to end their turf battles and public criticism and to get in line behind the reforms. (See the Senate's full list of witnesses for today's hearing)
  • Monday's market climb. The S&P 500 broke through the 1,000 mark for the first time since November, climbing 1.5% to close at 1,002.63, and the Nasdaq broke the 2,000 mark, closing up 1.5% at 2,008.61. All three major U.S. indexes, including the Dow Jones Industrial Average, are now at their highest levels since last autumn. Speculation that the recession may be ending helped commodities surge and sent Treasurys and the dollar down.
  • Google's Schmidt leaves Apple board. Google (GOOG) CEO Eric Schmidt resigned from Apple's (AAPL) board of directors, with Apple releasing a statement that "as Google enters more of Apple's core businesses... Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest." The resignation, which Apple described as mutual, highlights not just the growing overlap between Apple and Google, but also increased antitrust scrutiny from the Federal Trade Commission. The move failed to mollify the FTC, which said it "will continue to investigate remaining interlocking directorates between the companies."
  • ANZ picks up Asian assets. Australia and New Zealand Banking Group (ANZBY.PK) agreed to buy some Asian units from Royal Bank of Scotland (RBS) for around $550M. ANZ will pick up retail, wealth management and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, as well as RBS' institutional banking businesses in Taiwan, the Philippines and Vietnam, as a 'further stepping stone' in the bank's Asian growth strategy.
  • Clunker program lifts car sales. July U.S. motor vehicle sales reached their highest pace in eleven months, thanks in large part to the 'Cash for Clunkers' program which sent consumers rushing to dealerships. Car firms sold 997,824 cars and light trucks in July, pushing the annualized selling pace to 11.24M vehicles vs. June's rate of 9.69M, and a slump in luxury auto demand showed signs of lessening. Here's the breakdown:
    -Ford (F): +2.3% to 158,838 vs. consensus of -5%, making it the first U.S. manufacturer to report a monthly sales increase this year.
    -Chrysler: -9% to 88,900. Car sales -14% to 22,109. Sales up 30% M/M. "We are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle."
    -General Motors: -19.4% to 189,443. Chevrolet was the best-performing brand at -9.3% to 124,948. Saturn, the worst performer, was -66.1% to 5,968.
    -Honda (HMC): -17.3% to 114,690. Truck sales -20.6% to 37,996.
    -Toyota (TM): -11.4% to 174,872, up 27.7% M/M. Lexus division -16.5% to 18,517. Hybrids +19.3% to 24,295.
    -Nissan (NSANY): -24.6% to 71,847. Trucks -48.4% to 20,448.
    -Daimler (DAI): -24% to 17,646 for the Mercedes-Benz car division.
    -Volkswagen (VLKAY.PK): +0.7% to 20,590. Diesels accounted for more then 30% of total sales.
  • CIT sweetens buyback offer. CIT Group (CIT) raised its tender offer on $1B in notes to a purchase price of $875 per $1,000, up from $825. CIT also lowered its minimum tender condition to 58% of notes, and has already received tenders for 64.97% of notes. The improved terms all but guarantee the buyback's success, pulling CIT one step farther away from bankruptcy court. (Read CIT's press release)
  • AIG gets new chief. Robert Benmosche will become CEO and President of AIG (AIG), replacing Edward Liddy as of August 10. Benmosche is the former CEO of MetLife (MET), and will be AIG's fifth chief since 2005.
  • Manufacturing still contracting. The ISM Manufacturing Index came in at 48.9 in July vs. 46.5 consensus, its 18th consecutive month of contraction. Nonmetallic Mineral Products and Paper Products reported growth. Machinery, Plastics & Rubber Products, and Wood Products led the laggards.
  • Construction spending inches up (.pdf). June Construction Spending rose 0.3% to $966B/year, beating consensus estimates of -0.5%. Compared to a year ago, construction was down 10.2%. For the first half of the year, spending of $456B was 11.4% below last year.

Earnings: Tuesday Before Open

  • Allegheny Energy (AYE): Q2 EPS of $0.43 in-line. Revenue of $815M (-15%) vs. $868M. (PR)
  • Archer Daniels Midland (ADM): FQ4 EPS of $0.10 vs. consensus of $0.45 (may not be comparable). Revenue of $16.5B (-24%) vs. $15.2B. (PR)
  • ArvinMeritor (ARM): FQ3 EPS of -$0.25 beats by $0.06. Revenue of $993M (-47%) vs. $1.2B. (PR)
  • Cameron International (CAM): Q2 EPS of $0.60 beats by $0.13. Revenue of $1.3B (-14%) vs. $1.2B. Issues upside Q3 EPS guidance of $0.50-0.55 vs. $0.42 consensus. Issues upside FY '09 EPS guidance of $2.15-2.25 vs. $1.89 consensus. (PR)
  • Cincinnati Bell (CBB): Q2 EPS of $0.11 beats by $0.01. Revenue of $328M (-7%) vs. $336M. (PR)
  • Cognizant Technology Solutions (CTSH): Q2 EPS of $0.50 beats by $0.13. Revenue of $777M (+13%) vs. $762M. Issues upside Q3 guidance: sees EPS of $0.44 vs. $0.39 consensus, revenue of at least $800M vs. $781M consensus. (PR)
  • CVS Caremark (CVS): Q2 EPS of $0.65 beats by $0.01. Revenue of $25B (+18%) vs. $24B. (PR)
  • Discovery Communications (DISCA): Q2 EPS of $0.43 beats by $0.11. Revenue of $881M (-0.5%) in-line. (PR)
  • D.R. Horton (DHI): FQ3 EPS of -$0.45 misses by $0.22. Revenue of $922.5M (-43%) vs. $792M. (PR)
  • Duke Energy (DUK): Q2 EPS of $0.26 beats by $0.01. Revenue of $2.9B (-10%) vs. $3.2B. (PR)
  • Emerson Electric Company (EMR): FQ3 EPS of $0.56 misses by $0.01. Revenue of $5.1B (-22.5%) vs. $5.3B. (PR)
  • Entergy (ETR): Q2 EPS of $1.23 misses by $0.03. Issues in-line guidance for FY '09, sees EPS of $6.20-6.80 vs. $6.56 consensus. (PR)
  • Expeditors International of Washington (EXPD): Q2 EPS of $0.25 in-line. Revenue of $895M (-38%) vs. $999M. (PR)
  • Frontier Communications Corporation (FTR): Q2 EPS of $0.11 misses by $0.02. Revenue of $532M (-5%) vs. $534M. (PR)
  • HCP (HCP): Q2 EPS of $0.55 beats by $0.04. Revenue of $267M (+7.5%) vs. $249M. (PR)
  • Henry Schein (HSIC): Q2 EPS of $0.81 beats by $0.05. Revenue of $1.6B (-2%) in-line. (PR)
  • Iconix Brand Group (ICON): Q2 EPS of $0.30 in-line. Revenue of $56M (+9%) vs. $51M. (PR)
  • IntercontinentalExchange (ICE): Q2 EPS of $1.12 misses by $0.01. Revenue of $250M (+27%) vs. $243M. Shares +0.6% premarket (7:40 ET). (PR)
  • Louisiana-Pacific (LPX): Q2 EPS of -$0.26 beats by $0.07. Revenue of $266M (-31%) vs. $241M. (PR)
  • Marvel Entertainmnet (MVL): Q2 EPS of $0.37 beats by $0.06. Revenue of $116M (-26%) vs. $106M. (PR)
  • NiSource (NI): Q2 EPS of $0.02 beats by $0.01. Revenue of $1B (-35%) vs. $1.6B. (PR)
  • Pinnacle West Capital (PNW): Q2 EPS of $0.77 misses by $0.10. Revenue of $840M (-5%) vs. $834M. (PR)
  • PPL (PPL): Q2 EPS of $0.32 misses by $0.08. Revenue of $1.7B (+65%) in-line. (PR)
  • Progress Energy (PGN): Q2 EPS of $0.64 misses by $0.05. Revenue of $2.3B (+3%) in-line. (PR)
  • Rowan Companies (RDC): Q2 EPS of $0.78 beats by $0.03. Revenue of $482M (-18%) vs. $435M. (PR)
  • Spectra Energy Corp. (SE): Q2 EPS of $0.22 beats by $0.02. Revenue of $937M (-17%) vs. $1.1B. (PR)
  • St. Joe Company (JOE): Q2 EPS of -$0.49 misses by $0.33. Revenue of $41M (-40%) vs. $24M. (PR)
  • Tenet Healthcare (THC): Q2 EPS of -$0.03 misses by $0.02. Revenue of $2.2B (+5.5%) in-line. (PR)
  • TRW Automotive (TRW): Q2 EPS of -$0.11 vs. consensus of -$0.83 (may not be comparable). Excluding charges, reports $0.08 per share. Revenue of $2.7B (-39%) vs. $2.6B. (PR)
  • Valeant Pharmaceuticals International (VRX): Q2 EPS of $0.51 beats by $0.07. Revenue of $192M (+25%) vs. $181M. Shares +5.6% premarket (8:20 ET). (PR)
  • W&T Offshore (WTI): Q2 EPS of -$0.07 beats by $0.41. Revenue of $150M (-67%) vs. $138M. (PR)

Earnings: Monday After Close

  • Anadarko (APC): Q2 EPS of -$0.48 beats by $0.20. Revenue of $1.8B (-37%) in-line. (PR)
  • Arena Pharmaceuticals (ARNA): Q2 EPS of -$0.48 beats by $0.01. Revenue of $2.4M (-8%) vs. $3.1M. (PR)
  • Atmel (ATML): Q2 EPS of $0.00 beats by $0.05. Revenue of $285M (-32%) vs. $279M. Sees Q3 sales up 4-8% sequentially. (PR)
  • Axis Capital (AXS): Q2 EPS of $1.22 beats by $0.05. Revenue of $781M (-4%) vs. $747M. (PR)
  • Centex (CTX): Q2 EPS of -$2.63 misses by $1.46. Including tax benefit, reported EPS of $0.68. Revenue of $574M (-49%) vs. $563M. (PR)
  • Chesapeake Energy (CHK): Q2 EPS of $0.62 beats by $0.11. Revenue of $1.7B vs. $1.9B. (PR)
  • Comstock Resources (CRK): Q2 EPS of -$0.26 in-line. Revenue of $65M (-62%) vs. $63M. (PR)
  • Extra Space Storage (EXR): Q2 FFO of $0.24 beats by $0.10. Revenue of $69M (+3%) vs. $67M. (PR)
  • Forest Oil (FST): Q2 EPS of $0.52 beats by $0.06. Revenue of $182M (-65%) vs. $240M. (PR)
  • Herbalife (HLF): Q2 EPS of $0.78 beats by $0.06. Revenue of $572M (-11%) vs. $550M. Sees Q3 EPS of $0.66-0.69 vs. $0.81. Sees Q3 revenue down 4-6%. (PR)
  • Hologic (HOLX): FQ3 EPS of $0.29 beats by $0.03. Revenue of $403M (-6%) vs. $395M. Sees full-year EPS of $1.14-1.16 vs. $1.12. (PR)
  • Principal Financial Group (PFG): Q2 EPS of $0.69 beats by $0.06. Revenue of $2.2B (-19%) vs. $2.5B. (PR)
  • Pulte Homes (PHM): Q2 EPS of -$0.74 misses by $0.17. Revenue of $679M (-58%) vs. $647M. (PR)
  • STEC (STEC): Q2 EPS of $0.42 beats by $0.08. Revenue of $86M (+54%) vs. $83M. Sees Q3 EPS of $0.45-0.47 vs. $0.39. Files to sell 7.5M shares of common stock. (PR)
  • WMS Industries (WMS): FQ4 EPS of $0.49 beats by $0.02. Revenue of $196M (+5%) vs. $197M. Sees full-year revenue of $760M-780M vs. $707M. (PR)

Today's Markets

Little movement in Asian markets, which closed mixed. European markets are heading down and U.S. markets are unlikely to sustain yesterday's gains.

]]> Tue, 04 Aug 2009 07:18:32 -0400 SA Editor Rachael Granby

  • BoA's Lewis closer to exit. Bank of America (BAC) reshuffled its senior management yesterday, replacing the head of consumer banking with Brian Moynihan, who had previously run wealth management, and hiring Sallie Krawcheck as the new wealth management chief. The bank is also setting up a five-way competition for a new CEO to replace Ken Lewis "at the appropriate time," with candidates including Moynihan, who is the front runner for the position, Krawcheck, CFO Joe Price, home-lending chief Barbara Desoer and Goldman Sachs veteran Tom Montag. Shares -1.4% premarket (7:00 ET). (Read BoA's press release)
  • BoA settles Merrill suit. Bank of America (BAC) agreed to a $33M settlement with the SEC over charges that it made false and misleading statements to investors about bonuses at Merrill Lynch. The settlement was announced almost immediately after the allegations, which the bank neither confirmed nor denied, but the SEC emphasized it will continue its investigation. Though the $33M payment is high for disclosure-related cases not connected to fraud, the fine seems small compared to the $3.6B in bonuses paid at Merrill in 2008 and damages CEO Ken Lewis' once-golden reputation far more than BoA's bottom line. (Read the SEC's complaint (.pdf) and statement on the settlement)
  • No surprises from UBS loss. UBS (UBS) posted a Q2 net loss of 1.4B Swiss francs ($1.32B), its third consecutive quarterly loss, on costs related to job cuts and charges related to the company's debt. Its wealth and asset management divisions saw outflows of 39.4B francs. CEO Oswald Gruebel said markets improved in the second quarter but a sustainable economic recovery 'is not yet visible.' Shares -8.3% premarket (7:00 ET). (Read UBS' letter to shareholders (.pdf))
  • Bank regulators oppose financial reforms. Several top banking regulators, including the FDIC's Sheila Bair, will testify in Congress today against some key elements of Obama's proposed financial reforms. The regulators feel parts of Obama's plan are unnecessary, and Bair doesn't "see merit or wisdom in consolidating federal supervision" under a single regulator since combining agencies is 'no panacea' for effective oversight. The testimony comes in spite of strongly-worded exhortations from Geithner, who wants regulators to end their turf battles and public criticism and to get in line behind the reforms. (See the Senate's full list of witnesses for today's hearing)
  • Monday's market climb. The S&P 500 broke through the 1,000 mark for the first time since November, climbing 1.5% to close at 1,002.63, and the Nasdaq broke the 2,000 mark, closing up 1.5% at 2,008.61. All three major U.S. indexes, including the Dow Jones Industrial Average, are now at their highest levels since last autumn. Speculation that the recession may be ending helped commodities surge and sent Treasurys and the dollar down.
  • Google's Schmidt leaves Apple board. Google (GOOG) CEO Eric Schmidt resigned from Apple's (AAPL) board of directors, with Apple releasing a statement that "as Google enters more of Apple's core businesses... Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest." The resignation, which Apple described as mutual, highlights not just the growing overlap between Apple and Google, but also increased antitrust scrutiny from the Federal Trade Commission. The move failed to mollify the FTC, which said it "will continue to investigate remaining interlocking directorates between the companies."
  • ANZ picks up Asian assets. Australia and New Zealand Banking Group (ANZBY.PK) agreed to buy some Asian units from Royal Bank of Scotland (RBS) for around $550M. ANZ will pick up retail, wealth management and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, as well as RBS' institutional banking businesses in Taiwan, the Philippines and Vietnam, as a 'further stepping stone' in the bank's Asian growth strategy.
  • Clunker program lifts car sales. July U.S. motor vehicle sales reached their highest pace in eleven months, thanks in large part to the 'Cash for Clunkers' program which sent consumers rushing to dealerships. Car firms sold 997,824 cars and light trucks in July, pushing the annualized selling pace to 11.24M vehicles vs. June's rate of 9.69M, and a slump in luxury auto demand showed signs of lessening. Here's the breakdown:
    -Ford (F): +2.3% to 158,838 vs. consensus of -5%, making it the first U.S. manufacturer to report a monthly sales increase this year.
    -Chrysler: -9% to 88,900. Car sales -14% to 22,109. Sales up 30% M/M. "We are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle."
    -General Motors: -19.4% to 189,443. Chevrolet was the best-performing brand at -9.3% to 124,948. Saturn, the worst performer, was -66.1% to 5,968.
    -Honda (HMC): -17.3% to 114,690. Truck sales -20.6% to 37,996.
    -Toyota (TM): -11.4% to 174,872, up 27.7% M/M. Lexus division -16.5% to 18,517. Hybrids +19.3% to 24,295.
    -Nissan (NSANY): -24.6% to 71,847. Trucks -48.4% to 20,448.
    -Daimler (DAI): -24% to 17,646 for the Mercedes-Benz car division.
    -Volkswagen (VLKAY.PK): +0.7% to 20,590. Diesels accounted for more then 30% of total sales.
  • CIT sweetens buyback offer. CIT Group (CIT) raised its tender offer on $1B in notes to a purchase price of $875 per $1,000, up from $825. CIT also lowered its minimum tender condition to 58% of notes, and has already received tenders for 64.97% of notes. The improved terms all but guarantee the buyback's success, pulling CIT one step farther away from bankruptcy court. (Read CIT's press release)
  • AIG gets new chief. Robert Benmosche will become CEO and President of AIG (AIG), replacing Edward Liddy as of August 10. Benmosche is the former CEO of MetLife (MET), and will be AIG's fifth chief since 2005.
  • Manufacturing still contracting. The ISM Manufacturing Index came in at 48.9 in July vs. 46.5 consensus, its 18th consecutive month of contraction. Nonmetallic Mineral Products and Paper Products reported growth. Machinery, Plastics & Rubber Products, and Wood Products led the laggards.
  • Construction spending inches up (.pdf). June Construction Spending rose 0.3% to $966B/year, beating consensus estimates of -0.5%. Compared to a year ago, construction was down 10.2%. For the first half of the year, spending of $456B was 11.4% below last year.

Earnings: Tuesday Before Open

  • Allegheny Energy (AYE): Q2 EPS of $0.43 in-line. Revenue of $815M (-15%) vs. $868M. (PR)
  • Archer Daniels Midland (ADM): FQ4 EPS of $0.10 vs. consensus of $0.45 (may not be comparable). Revenue of $16.5B (-24%) vs. $15.2B. (PR)
  • ArvinMeritor (ARM): FQ3 EPS of -$0.25 beats by $0.06. Revenue of $993M (-47%) vs. $1.2B. (PR)
  • Cameron International (CAM): Q2 EPS of $0.60 beats by $0.13. Revenue of $1.3B (-14%) vs. $1.2B. Issues upside Q3 EPS guidance of $0.50-0.55 vs. $0.42 consensus. Issues upside FY '09 EPS guidance of $2.15-2.25 vs. $1.89 consensus. (PR)
  • Cincinnati Bell (CBB): Q2 EPS of $0.11 beats by $0.01. Revenue of $328M (-7%) vs. $336M. (PR)
  • Cognizant Technology Solutions (CTSH): Q2 EPS of $0.50 beats by $0.13. Revenue of $777M (+13%) vs. $762M. Issues upside Q3 guidance: sees EPS of $0.44 vs. $0.39 consensus, revenue of at least $800M vs. $781M consensus. (PR)
  • CVS Caremark (CVS): Q2 EPS of $0.65 beats by $0.01. Revenue of $25B (+18%) vs. $24B. (PR)
  • Discovery Communications (DISCA): Q2 EPS of $0.43 beats by $0.11. Revenue of $881M (-0.5%) in-line. (PR)
  • D.R. Horton (DHI): FQ3 EPS of -$0.45 misses by $0.22. Revenue of $922.5M (-43%) vs. $792M. (PR)
  • Duke Energy (DUK): Q2 EPS of $0.26 beats by $0.01. Revenue of $2.9B (-10%) vs. $3.2B. (PR)
  • Emerson Electric Company (EMR): FQ3 EPS of $0.56 misses by $0.01. Revenue of $5.1B (-22.5%) vs. $5.3B. (PR)
  • Entergy (ETR): Q2 EPS of $1.23 misses by $0.03. Issues in-line guidance for FY '09, sees EPS of $6.20-6.80 vs. $6.56 consensus. (PR)
  • Expeditors International of Washington (EXPD): Q2 EPS of $0.25 in-line. Revenue of $895M (-38%) vs. $999M. (PR)
  • Frontier Communications Corporation (FTR): Q2 EPS of $0.11 misses by $0.02. Revenue of $532M (-5%) vs. $534M. (PR)
  • HCP (HCP): Q2 EPS of $0.55 beats by $0.04. Revenue of $267M (+7.5%) vs. $249M. (PR)
  • Henry Schein (HSIC): Q2 EPS of $0.81 beats by $0.05. Revenue of $1.6B (-2%) in-line. (PR)
  • Iconix Brand Group (ICON): Q2 EPS of $0.30 in-line. Revenue of $56M (+9%) vs. $51M. (PR)
  • IntercontinentalExchange (ICE): Q2 EPS of $1.12 misses by $0.01. Revenue of $250M (+27%) vs. $243M. Shares +0.6% premarket (7:40 ET). (PR)
  • Louisiana-Pacific (LPX): Q2 EPS of -$0.26 beats by $0.07. Revenue of $266M (-31%) vs. $241M. (PR)
  • Marvel Entertainmnet (MVL): Q2 EPS of $0.37 beats by $0.06. Revenue of $116M (-26%) vs. $106M. (PR)
  • NiSource (NI): Q2 EPS of $0.02 beats by $0.01. Revenue of $1B (-35%) vs. $1.6B. (PR)
  • Pinnacle West Capital (PNW): Q2 EPS of $0.77 misses by $0.10. Revenue of $840M (-5%) vs. $834M. (PR)
  • PPL (PPL): Q2 EPS of $0.32 misses by $0.08. Revenue of $1.7B (+65%) in-line. (PR)
  • Progress Energy (PGN): Q2 EPS of $0.64 misses by $0.05. Revenue of $2.3B (+3%) in-line. (PR)
  • Rowan Companies (RDC): Q2 EPS of $0.78 beats by $0.03. Revenue of $482M (-18%) vs. $435M. (PR)
  • Spectra Energy Corp. (SE): Q2 EPS of $0.22 beats by $0.02. Revenue of $937M (-17%) vs. $1.1B. (PR)
  • St. Joe Company (JOE): Q2 EPS of -$0.49 misses by $0.33. Revenue of $41M (-40%) vs. $24M. (PR)
  • Tenet Healthcare (THC): Q2 EPS of -$0.03 misses by $0.02. Revenue of $2.2B (+5.5%) in-line. (PR)
  • TRW Automotive (TRW): Q2 EPS of -$0.11 vs. consensus of -$0.83 (may not be comparable). Excluding charges, reports $0.08 per share. Revenue of $2.7B (-39%) vs. $2.6B. (PR)
  • Valeant Pharmaceuticals International (VRX): Q2 EPS of $0.51 beats by $0.07. Revenue of $192M (+25%) vs. $181M. Shares +5.6% premarket (8:20 ET). (PR)
  • W&T Offshore (WTI): Q2 EPS of -$0.07 beats by $0.41. Revenue of $150M (-67%) vs. $138M. (PR)

Earnings: Monday After Close

  • Anadarko (APC): Q2 EPS of -$0.48 beats by $0.20. Revenue of $1.8B (-37%) in-line. (PR)
  • Arena Pharmaceuticals (ARNA): Q2 EPS of -$0.48 beats by $0.01. Revenue of $2.4M (-8%) vs. $3.1M. (PR)
  • Atmel (ATML): Q2 EPS of $0.00 beats by $0.05. Revenue of $285M (-32%) vs. $279M. Sees Q3 sales up 4-8% sequentially. (PR)
  • Axis Capital (AXS): Q2 EPS of $1.22 beats by $0.05. Revenue of $781M (-4%) vs. $747M. (PR)
  • Centex (CTX): Q2 EPS of -$2.63 misses by $1.46. Including tax benefit, reported EPS of $0.68. Revenue of $574M (-49%) vs. $563M. (PR)
  • Chesapeake Energy (CHK): Q2 EPS of $0.62 beats by $0.11. Revenue of $1.7B vs. $1.9B. (PR)
  • Comstock Resources (CRK): Q2 EPS of -$0.26 in-line. Revenue of $65M (-62%) vs. $63M. (PR)
  • Extra Space Storage (EXR): Q2 FFO of $0.24 beats by $0.10. Revenue of $69M (+3%) vs. $67M. (PR)
  • Forest Oil (FST): Q2 EPS of $0.52 beats by $0.06. Revenue of $182M (-65%) vs. $240M. (PR)
  • Herbalife (HLF): Q2 EPS of $0.78 beats by $0.06. Revenue of $572M (-11%) vs. $550M. Sees Q3 EPS of $0.66-0.69 vs. $0.81. Sees Q3 revenue down 4-6%. (PR)
  • Hologic (HOLX): FQ3 EPS of $0.29 beats by $0.03. Revenue of $403M (-6%) vs. $395M. Sees full-year EPS of $1.14-1.16 vs. $1.12. (PR)
  • Principal Financial Group (PFG): Q2 EPS of $0.69 beats by $0.06. Revenue of $2.2B (-19%) vs. $2.5B. (PR)
  • Pulte Homes (PHM): Q2 EPS of -$0.74 misses by $0.17. Revenue of $679M (-58%) vs. $647M. (PR)
  • STEC (STEC): Q2 EPS of $0.42 beats by $0.08. Revenue of $86M (+54%) vs. $83M. Sees Q3 EPS of $0.45-0.47 vs. $0.39. Files to sell 7.5M shares of common stock. (PR)
  • WMS Industries (WMS): FQ4 EPS of $0.49 beats by $0.02. Revenue of $196M (+5%) vs. $197M. Sees full-year revenue of $760M-780M vs. $707M. (PR)

Today's Markets

Little movement in Asian markets, which closed mixed. European markets are heading down and U.S. markets are unlikely to sustain yesterday's gains.


Complete Story »]]> AAPL ADM AIG ANZBY.PK APC ARM ARNA ATML AXS AYE BAC CAM CBB CHK CIT CRK CTSH CTX CVS DAI DHI DIA DISCA DUK EMR ETR EXPD EXR F FST FTR GLD GOOG HCP HLF HMC HOLX HSIC ICE ICON JOE LPX MET MVL NI NSANY PFG PGN PHM PNW PPL QQQQ RBS RDC SE SPY STEC THC TM TRW UBS USO VLKAY.PK VRX WMS WTI SA Editor Rachael Granby Oil Takes a Dive; Is It Still Alive? 45 Option Strategies http://seekingalpha.com/article/152417-oil-takes-a-dive-is-it-still-alive-45-option-strategies?source=feed 152417 As oil sold off over 6% Tuesday, I was searching for some companies to buy on the dip. I decided to look at opening the position with the buy/write option strategy, as this would give me a return if oil rallies, as well as protect my position to the downside if oil continued to slide.

As recently stated on OptionMaestro.com, I believed oil would peak in early to mid July. However if we keep hearing of these "green shoots" and the stock market continues to rally, I believe oil could continue to rally as well, and as late as October in my opinion. I don't think $75 a barrel oil is out of the question, especially on the back of a weak dollar.

]]> Thu, 30 Jul 2009 05:35:11 -0400 Marco Hickey Marco Hickey submits:

As oil sold off over 6% Tuesday, I was searching for some companies to buy on the dip. I decided to look at opening the position with the buy/write option strategy, as this would give me a return if oil rallies, as well as protect my position to the downside if oil continued to slide.

As recently stated on OptionMaestro.com, I believed oil would peak in early to mid July. However if we keep hearing of these "green shoots" and the stock market continues to rally, I believe oil could continue to rally as well, and as late as October in my opinion. I don't think $75 a barrel oil is out of the question, especially on the back of a weak dollar.


Complete Story »]]> APA APC BHI BJS BTU CAM CHK CNX COG COP CVX DIA DIG DNR DO DVN EOG EP ESV FTI HAL HES MEE MRO MUR NBL NBR NOV OXY PXD QQQQ RDC RRC SE SII SLB SPY SUN SWN TLT TSO UCO UNG USO VLO WMB XLE XOM XTO Marco Hickey Energy Equipment Suppliers' Performance Is Subpar http://seekingalpha.com/article/152175-energy-equipment-suppliers-performance-is-subpar?source=feed 152175 A Need for Better Performance

Few things can sour a relationship faster than watching wellsite operations that cost tens, or even hundreds, of thousands of dollars a day grind to a halt due to poorly performing rigs and/or rig-related equipment. As a result, both oilfield operators and suppliers pay considerable attention to the assortment of equipment comprising the rigs that they contract or own.

]]> Wed, 29 Jul 2009 11:31:48 -0400 Doug Sheridan Doug Sheridan submits:

A Need for Better Performance

Few things can sour a relationship faster than watching wellsite operations that cost tens, or even hundreds, of thousands of dollars a day grind to a halt due to poorly performing rigs and/or rig-related equipment. As a result, both oilfield operators and suppliers pay considerable attention to the assortment of equipment comprising the rigs that they contract or own.


Complete Story »]]> CAM CAT NOV RDC TESO Doug Sheridan 11 U.S. Oil Drilling Companies to Invest in http://seekingalpha.com/article/150324-11-u-s-oil-drilling-companies-to-invest-in?source=feed 150324 By Guest Author: Robert Williams, PhD, P.E.

This oil and gas industry perspective highlights only US-quoted drilling companies that provide offshore drilling activities in the ongoing search for that elusive black gold. There are a staggering number of different types of drilling rigs in operation around the globe and this summary is only for major US companies and does not include the independent drillers. Other UK, Norwegian, Danish, Japanese and many other countries have similar quantities of drilling rigs in operation on a global basis.

]]> Wed, 22 Jul 2009 02:13:02 -0400 Tate Dwinnell Tate Dwinnell submits:

By Guest Author: Robert Williams, PhD, P.E.

This oil and gas industry perspective highlights only US-quoted drilling companies that provide offshore drilling activities in the ongoing search for that elusive black gold. There are a staggering number of different types of drilling rigs in operation around the globe and this summary is only for major US companies and does not include the independent drillers. Other UK, Norwegian, Danish, Japanese and many other countries have similar quantities of drilling rigs in operation on a global basis.


Complete Story »]]> ATW DO ESV HERO HP NBR NE PDE RDC RIG VTG Tate Dwinnell P/E - Value Plays or Value Traps? http://seekingalpha.com/article/148307-p-e-value-plays-or-value-traps?source=feed 148307 When analyst and market pundits come on tv to talk about stock picks, they usually talk about the "P/E" ratio (Price to Earnings) being attractive. However if you're investing in stocks and you only look at the "P/E" ratio, you might be walking into a "Value Trap". Investors ignore half the valuation picture when investors only concentrate on P/E as investors also need to consider the growth potential of the company and what investments are needed to get the earnings. The Applied Finance Group's (AFG’s) has developed a process that incorporates these factors easily into the valuation framework. Using AFG’s Valuation Metric, we have compiled a list of 20 companies with low P/E, 10 of which we consider attractive investments, and 10 of which we consider Value Traps.

By using AFG's Economic Margin framework instead of earnings alone, investors capture the true net cash flow the entire firm is generating. It is not uncommon for companies to grow P/E while having declining EMs. This occurs when the cost for the investment required to yield the increasing P/E is more than the cash flow generated from the investment. By analyzing a company’s EMs through time, investors gain a more accurate account of levels and changes in a company’s current profitability and value.

]]> Sun, 12 Jul 2009 11:48:40 -0400 Value Expectations Value Expectations submits:

When analyst and market pundits come on tv to talk about stock picks, they usually talk about the "P/E" ratio (Price to Earnings) being attractive. However if you're investing in stocks and you only look at the "P/E" ratio, you might be walking into a "Value Trap". Investors ignore half the valuation picture when investors only concentrate on P/E as investors also need to consider the growth potential of the company and what investments are needed to get the earnings. The Applied Finance Group's (AFG’s) has developed a process that incorporates these factors easily into the valuation framework. Using AFG’s Valuation Metric, we have compiled a list of 20 companies with low P/E, 10 of which we consider attractive investments, and 10 of which we consider Value Traps.

By using AFG's Economic Margin framework instead of earnings alone, investors capture the true net cash flow the entire firm is generating. It is not uncommon for companies to grow P/E while having declining EMs. This occurs when the cost for the investment required to yield the increasing P/E is more than the cash flow generated from the investment. By analyzing a company’s EMs through time, investors gain a more accurate account of levels and changes in a company’s current profitability and value.


Complete Story »]]> BIIB BMY CBS CEPH DO ED GCI GME HRS MDP MDT MTW NI PFE RDC RRD RX T TWX WIN Value Expectations Time to Show Some Love to the Sell-Side? http://seekingalpha.com/article/142719-time-to-show-some-love-to-the-sell-side?source=feed 142719 Back in my days at Reuters.com, when I felt feisty and wanted to generate some angry reader e-mails, I had a sure-fire formula: write an article extolling benefits of following sell-side analysts. That never failed to produce a deluge, regardless of what the performance numbers really showed.

Then came 2007-08, when every strategy, it seems, struggled - including those that involved use of analyst recommendations and/or earnings estimates.

]]> Thu, 11 Jun 2009 10:38:33 -0400 Marc Gerstein Back in my days at Reuters.com, when I felt feisty and wanted to generate some angry reader e-mails, I had a sure-fire formula: write an article extolling benefits of following sell-side analysts. That never failed to produce a deluge, regardless of what the performance numbers really showed.

Then came 2007-08, when every strategy, it seems, struggled - including those that involved use of analyst recommendations and/or earnings estimates.


Complete Story »]]> ARO CRR DCP DECK EME GCO INT PETM RDC ROST Marc Gerstein Rowan Companies Q1 2009 Earnings Call Transcript http://seekingalpha.com/article/136287-rowan-companies-q1-2009-earnings-call-transcript?source=feed 136287 Rowan Companies, Inc. (RDC)

Q1 2009 Earnings Call

May 07, 2009 11:00 AM ET

]]> Thu, 07 May 2009 19:45:29 -0400 Rowan Companies, Inc. (RDC)

Q1 2009 Earnings Call

May 07, 2009 11:00 AM ET


Complete Story »]]> RDC Interview with Matt Badiali: Time to Buy Oil Service Companies http://seekingalpha.com/article/132892-interview-with-matt-badiali-time-to-buy-oil-service-companies?source=feed 132892 Who doesn't want the opportunity to make 300%, 400%—even 500%—on stocks? "As an investor right now," says Matt Badiali, editor of the S&A Oil Report, "I think this is the best time you could possibly be buying your oil stocks." In this exclusive interview with The Energy Report, Matt reviews the last two decades of this highly cyclical commodity, explaining how you can capitalize on 20-year lows in oil service companies before the world economies stabilize.

The Energy Report: Matt, could you give us a general outlook for where you see green, renewable and fossil fuels going? How about both short-term (one to two years) and longer-term (two to five years)?

]]> Fri, 24 Apr 2009 04:03:59 -0400 The Energy Report The Energy Report submits:

Who doesn't want the opportunity to make 300%, 400%—even 500%—on stocks? "As an investor right now," says Matt Badiali, editor of the S&A Oil Report, "I think this is the best time you could possibly be buying your oil stocks." In this exclusive interview with The Energy Report, Matt reviews the last two decades of this highly cyclical commodity, explaining how you can capitalize on 20-year lows in oil service companies before the world economies stabilize.

The Energy Report: Matt, could you give us a general outlook for where you see green, renewable and fossil fuels going? How about both short-term (one to two years) and longer-term (two to five years)?


Complete Story »]]> BJS PKD RDC The Energy Report Capital Goods' Valuation Outlook http://seekingalpha.com/article/127338-capital-goods-valuation-outlook?source=feed 127338 In our March Monthly Market Review we released a series of graphs representing the valuation attractiveness of each sector relative to its historical norms and to the entire AFG universe. Below is a graph representing the Capital Goods sector which is attractively priced when you compare against its historical trading ranges (red line) and when comparing against the overall AFG Universe (represented by the value of 1). Only in 1998 has the sector looked more attractive since our valuation tracking started in 1996. Listed are 10 companies in the Capital Goods sector that meet AFG’s Buy Criteria and look attractive from a valuation standpoint. Also listed below the graphs are an explanation of AFG’s Buy Criteria and AFG’s Percent to Target Charts.

click to enlarge

]]> Mon, 23 Mar 2009 07:50:02 -0400 Value Expectations Value Expectations submits:

In our March Monthly Market Review we released a series of graphs representing the valuation attractiveness of each sector relative to its historical norms and to the entire AFG universe. Below is a graph representing the Capital Goods sector which is attractively priced when you compare against its historical trading ranges (red line) and when comparing against the overall AFG Universe (represented by the value of 1). Only in 1998 has the sector looked more attractive since our valuation tracking started in 1996. Listed are 10 companies in the Capital Goods sector that meet AFG’s Buy Criteria and look attractive from a valuation standpoint. Also listed below the graphs are an explanation of AFG’s Buy Criteria and AFG’s Percent to Target Charts.

click to enlarge


Complete Story »]]> ESV FLIR IR LMT NBR NE NOV RDC SII WAT Value Expectations Customer Satisfaction Declined Significantly During Oilfield Up Cycle http://seekingalpha.com/article/123590-customer-satisfaction-declined-significantly-during-oilfield-up-cycle?source=feed 123590 The last several years were, without a doubt, heady times for the oil and gas industry. Oilfield suppliers in particular enjoyed a kind of prosperity that even many industry old-timers regarded as nothing short of extraordinary. But growth in demand, and the challenges of serving that growth, clearly took a toll on the service and performance customers received from their suppliers during the period. In fact, EnergyPoint Research’s Oilfield Customer Satisfaction Index fell significantly beginning in 2004, hitting its all-time low in mid-2008. Ironically, although not surprisingly, this low-point in customer satisfaction came at the same time the Philadelphia Oil Service Index (OSX) reached its historic peak.

Despite enjoying some recent recovery, oilfield supplier customer satisfaction scores still remain conspicuously low. Comparison with other products and services in the broader economy — as measured by the American Customer Satisfaction Index — suggests oilfield suppliers’ aggregate ratings currently rank somewhere between those of commercial airlines and the U.S. Postal Service, organizations few consider to be champions of the customer cause.

]]> Mon, 02 Mar 2009 13:03:40 -0500 Doug Sheridan Doug Sheridan submits:

The last several years were, without a doubt, heady times for the oil and gas industry. Oilfield suppliers in particular enjoyed a kind of prosperity that even many industry old-timers regarded as nothing short of extraordinary. But growth in demand, and the challenges of serving that growth, clearly took a toll on the service and performance customers received from their suppliers during the period. In fact, EnergyPoint Research’s Oilfield Customer Satisfaction Index fell significantly beginning in 2004, hitting its all-time low in mid-2008. Ironically, although not surprisingly, this low-point in customer satisfaction came at the same time the Philadelphia Oil Service Index (OSX) reached its historic peak.

Despite enjoying some recent recovery, oilfield supplier customer satisfaction scores still remain conspicuously low. Comparison with other products and services in the broader economy — as measured by the American Customer Satisfaction Index — suggests oilfield suppliers’ aggregate ratings currently rank somewhere between those of commercial airlines and the U.S. Postal Service, organizations few consider to be champions of the customer cause.


Complete Story »]]> BAS BHI BJS CLB DRQ FTI HAL HP KEG LUFK NBR NE NOV PDS PTEN RDC SII SLB TESO WDGJF.PK WFT Doug Sheridan Rowan Companies Inc. Q4 2008 Earnings Call Transcript http://seekingalpha.com/article/122975-rowan-companies-inc-q4-2008-earnings-call-transcript?source=feed 122975 Rowan Companies Inc. (RDC)

Q4 2008 Earnings Call

February 26, 2009 10:00 am ET

]]> Thu, 26 Feb 2009 16:47:16 -0500 Rowan Companies Inc. (RDC)

Q4 2008 Earnings Call

February 26, 2009 10:00 am ET


Complete Story »]]> RDC Wall Street Breakfast: Must-Know News http://seekingalpha.com/article/122820-wall-street-breakfast-must-know-news?source=feed 122820

  • AIG carve up? Sources say AIG (AIG) is in advanced talks with U.S. officials about a radical restructuring plan that would split the troubled insurer into at least three government-controlled divisions. Described by one insider as a 'controlled break-up,' the move could end AIG's 90-year history of independence and serve as a model for carving up other troubled institutions. Under the plan, the government would swap its 80% stake in the insurer for large stakes in three units - AIG’s Asian operations, its international life insurance business and the US personal lines business. In return, officials would relax the terms of AIG's loans or even cancel a large portion of them. AIG would remain as a holding company but could disappear if the government decides to recoup taxpayer money by selling or listing the three divisions separately. The overhaul could be announced Monday.
  • Citi deal imminent. Citigroup (C) is very close to an agreement to boost the government's stake in the ailing company to 40%, and an announcement could come as soon as today. Executives have been rushing to identify potential problems from an increased government stake, including local laws in certain countries that would require Citigroup to apply for new charters or, in the case of Mexico, to potentially give up some or all of ownership in Grupo Financiero Banamex, the No. 2 bank in Mexico by assets, if the government takes more than a 10% stake in Citigroup.
  • The unstoppable budget deficit. The White House is projecting a $1.75T deficit for the current fiscal year, including a new $250B slush fund in case banks need more money. Officials say Obama has no plans to use the $250B, but wanted to include an 'overly conservative' placeholder just in case. The 134-page budget outlines health, tax and energy priorities, and includes a 10-year $634B reserve fund to help pay for Obama's proposed healthcare reforms and $537B for the U.S. military. The White House will also propose $634B in new taxes on upper-income Americans. The budget is due at 11:00 ET.
  • UBS shakes up top job. In the latest shake-up of its top management, UBS (UBS) announced the surprise departure of CEO Marcel Rohner. The position will be filled by Oswald Grubel, the former CEO at rival Credit Suisse (CS). In a statement, UBS said Rohner had told the board last month that he planned to retire as CEO after the conclusion of the "ongoing investment bank repositioning and wealth management restructuring phase," but is now leaving immediately. Rohner's sudden departure comes after UBS agreed to a $780M settlement with the Justice Department and amid an ongoing civil inquiry into tax evasion. Shares +10.0% premarket (7:00 ET).
  • Record loss at RBS. Royal Bank of Scotland (RBS) posted a full year loss of £24.1B ($34.3B), the biggest loss in British history. The record loss reflected a £16.2B write down against acquisitions and another £7.9B in operating losses. Reacting to the losses, RBS will put £325B of investments into a state insurance program. In return, the bank will pay a fee of £6.5B over seven years in the form of preference shares. RBS will also shift £540B of toxic assets to a new unit, including derivatives and mortgage-backed securities, and will increase lending by £50B over the next two years while aiming to reduce expenses by £2.5B. Shares +20.2% premarket (7:00 ET).
  • Exelon gains ground in NRG bid. Exelon (EXC) said its $6B tender offer for NRG Energy (NRG) won more than 51% of the outstanding shares, giving it strong leverage in its hostile pursuit of NRG. NRG has already rejected Exelon's offer twice, saying the price 'manifestly undervalues' NRG and expressing doubt whether Exelon would be able to finance the transaction. Winning the tender gives Exelon the right to acquire NRG, assuming Exelon shareholders agree to the deal and it receives regulatory approval. However, Exelon has good reason to try for a friendly acquisition since it will make the regulatory approval easier and will allow Exelon access to NRG's books.
  • BoA considers private bank sale. Bank of America (BAC) is reportedly looking to sell a private bank it inherited from Merrill Lynch. Merrill bought the bank in question, First Republic Bank, for $1.8B in September 2007. At the time, First Republic had $10B of deposits. Possible buyers include Goldman Sachs (GS) and Morgan Stanley (MS), both of which are trying to expand their deposit-gathering businesses.
  • Another fraud bites the dust. The most recent financial fraud to come to light revolves around two money managers who have been accused of misappropriating at least $533M to fund their own lavish lifestyles. The two men, Paul Greenwood and Stephen Walsh, were arrested by the FBI and face criminal charges of conspiracy, securities fraud and wire fraud. They are accused of running a fraudulent investment-advisory scheme since 1996 in which the men raised $668M from institutional clients and pocketed most of the money. Alleged victims include Carnegie Mellon University, the University of Pittsburgh and the Iowa Public Employees Retirement System.
  • Home sales fall. Existing Home Sales fell 5.3% to 4.49M/year in January, and are down 8.6% from a year ago. NAR's Lawrence Yun blamed the drop on would-be buyers waiting for more clarity on the nature of a government housing stimulus. Median prices -14.8% from a year ago.

Earnings: Thursday Before Open

  • American Tower (AMT): Q4 EPS of $0.21 beats by $0.07. Revenue of $408M (+8%) vs. $407M. (PR)
  • Boyd Gaming (BYD): Q4 EPS of $0.13 in-line. Revenue of $422.6M (-11.7%) vs. $423.4M. (PR)
  • Cablevision (CVC): Q4 EPS of -$1.11 misses by $1.44. Revenue of $2.05B (+11.4%) vs. $2.06B. (PR)
  • Continental Resources (CLR): Q4 EPS of $0.00 misses by $0.19. Revenue of $136M (-14.6%) vs. $160M. (PR)
  • Digital Realty Trust (DLR): Q4 EPS of $0.20 beats by $0.06. Revenue of $147M (+3.6%) vs. $144M. (PR)
  • Dynegy (DYN): Q4 EPS of -$0.01 beats by $0.01. Revenue of $795M (+9.8%) vs. $769M. (PR)
  • El Paso (EP): Q4 EPS of $0.21 in-line. Revenue of $1.3B (+6.4%) vs. $1.2B. (PR)
  • EMCOR Group (EME): Q4 EPS of $0.90 beats by $0.16. Revenue of $1.7B (-4.9%) vs. $1.8B. (PR)
  • ENSCO International (ESV): Q4 EPS of $2.14 beats by $0.08. Revenue of $622M (+20.2%) vs. $616M. (PR)
  • First American (FAF): Q4 EPS of $0.10 beats by $0.03. Revenue of $1.35B (-28%) vs. $1.43B. (PR)
  • Frontier Oil (FTO): Q4 EPS of $0.32 misses by $0.09. Revenue of $1.35B (+2.2%) vs. $1.61B. (PR)
  • Frontline (FRO): Q4 EPS of $1.03 misses by $0.08. Revenue of $452M (+36.2%) vs. $328M. (PR)
  • GM (GM): Q4 EPS of -$9.65 misses by $2.25 (-that's a $9.6B loss). Revenue of $30.8B vs. $35.13B. GM burned through another $6.2B in cash. 2008 sales of 8.35M vehicles, down 11%. (PR)
  • Global Industries (GLBL): Q4 EPS of -$0.24 misses by $0.17. Revenue of $250M (-4.8%) vs. $242M. (PR)
  • HRPT Properties Trust (HRP): Q4 EPS of $0.05 in-line. Revenue of $218M (+9.7%) vs. $211M. (PR)
  • Huntsman (HUN): Q4 EPS of -$0.38 misses by $0.33. Revenue of $2.05B (-18.2%) vs. $2.44B. (PR)
  • Iron Mountain (IRM): Q4 EPS of $0.01 misses by $0.16. Revenue of $753M (+3.6%) in-line. (PR)
  • King Pharmaceuticals (KG): Q4 EPS of $0.24 beats by $0.01. Revenue of $348M (-34.8%) vs. $345M. (PR)
  • Lamar Advertising Company (LAMR): Q4 EPS of -$0.08 misses by $0.01. Revenue of $279M (-8.4%) vs. $285M. (PR)
  • Limited Brands (LTD): Q4 EPS of $0.68 beats by $0.04. Revenue of $3.0B (-8.7%) in-line. (PR)
  • Linn Energy LLC (LINE): Q4 EPS of $0.00 misses by $0.32. Revenue of $155M (+2.7%) vs. $163M. Shares -2.6% premarket. (PR)
  • LKQ (LKQX): Q4 EPS of $0.10 misses by $0.04. Revenue of $470M (+13.4%) vs. $490M. (PR)
  • MetroPCS Communications (PCS): Q4 EPS of $0.04 misses by $0.03. Revenue of $724M (+22.4%) vs. $765M. (PR)
  • Nasdaq (NDAQ): Q4 EPS of $0.53 beats by $0.02. Revenue of $403M (-3.9%) vs. $414M. (PR)
  • NII Holdings (NIHD): Q4 EPS of $0.05 misses by $0.38. Revenue of $989.5M (+5.3%) vs. $1.0B. (PR)
  • Omnicare (OCR): Q4 EPS of $0.66 beats by $0.03. Revenue of $1.6B (+2.7%) in-line. (PR)
  • RAIT Financial Trust (RAS): Q4 EPS of $0.33 misses by $0.05. Revenue of $57.4M (-1.7%) vs. $54.9M. (PR)
  • Rowan Companies (RDC): Q4 EPS of $1.28 beats by $0.19. Revenue of $613M (-1.7%) vs. $615M. (PR)
  • Safeway (SWY): Q4 EPS of $0.80 misses by $0.01. Revenue of $13.82B (+3.4%) vs. $14.29B. (beats by $0.26. Revenue of $13.3B (-11.9%) vs. $14.0B. (PR)
  • Sonus Networks (SONS): Q4 EPS of -$0.37 misses by $0.35. Revenue of $89.5M (-7.8%) vs. $64.1M. (PR)
  • Southern Union Company (SUG): Q4 EPS of $0.47 beats by $0.03. Revenue of $727M (+75.3%) vs. $692M. (PR)
  • Warnaco Group (WRC): Q4 EPS of $0.29 beats by $0.14. Revenue of $446M (-4.4%) vs. $451M. (PR)

Earnings: Wednesday After Close

  • Aruba Networks (ARUN): FQ2 EPS of $0.02 beats by $0.02. Revenue of $47.7M (+17.5%) vs. $45.5M. Shares +11.6% AH. (PR, earnings call transcript)
  • Assured Guaranty (AGO): Q4 EPS of $0.04 beats by $0.03. Revenue of $123.3M (+22.1%) vs. $135.6M. (PR)
  • Avis Budget Group (CAR): Q4 EPS of -$1.08 misses by $0.61. Revenue of $1.26B (-9%) in-line. Shares -2% AH. (PR)
  • Express Scripts (ESRX): Q4 EPS of $0.83 in-line. Revenue of $5.51B (-0.9%) vs. $5.45B. Shares -1.6% AH. (PR)
  • El Paso (EP): Sees 2009 EPS of $0.85-1.05 vs. $1.11 consensus. Shares -2.65% AH. (PR)
  • Flowserve (FLS): Q4 EPS of $20.3 beats by $0.14. Revenue of $1.17B (+5.4%) vs. $1.26B. Shares +7.3% AH. (PR)
  • Fluor (FLR): Q4 EPS of $1.04 beats by $0.12. Revenue of $6.07B (+28.9%) vs. $5.81B. Sees 2009 EPS of $3.90-4.20 vs. $3.76. Shares +12.3% AH. (PR, earnings call transcript)
  • Genco Shipping (GNK): Q4 EPS of $1.55 misses by $0.01. Revenue of $101.6M (+54.6%) vs. $100.2M. Shares +1.5% AH. (PR)
  • Goodrich Petroleum (GDP): Q4 EPS of -$0.01 beats by $0.06. Revenue of $44.1M (+35.7%) vs. $49.9M. (PR)
  • Medicis Pharmaceutical (MRX): Q4 EPS of $0.42 beats by $0.11. Revenue of $136M (+1.4%) vs. $127M. Sees Q1 EPS of $0.15-0.18 vs. $0.30 and revenue of $125-130M vs. $129.5M. (PR)
  • Netease.com (NTES): Q4 EPS of $0.65 beats by $0.21. Revenue of $117.5M (-0.6%) in-line. Shares +5.3% AH. (PR)
  • Plains Exploration & Production Company (PXP): Q4 EPS of -$0.31 misses by $0.73. Revenue of $-33.5M vs. $328M. Shares -6.9% AH. (PR)
  • Salesforce.com (CRM): Q4 EPS of $0.11 beats by $0.04. Revenue of $290M vs. $285M. Sees full-year EPS of $0.54-0.55 vs. $0.51. "Salesforce.com is proud to be the first billion dollar cloud computing company." Shares +5.3% AH. (PR, earnings call transcript)
  • Savient Pharmaceuticals (SVNT): Q4 EPS of -$0.45 misses by $0.12. (PR)
  • Service International (SCI): Q4 EPS of $0.09 beats by $0.01. Revenue of $517M vs. $510M. Sees 2009 EPS of $0.26-0.36 vs. $0.38. Shares -0.3% AH. (PR)
  • Tenaris (TS): Q4 EPS of $1.01 beats by $0.02. Revenue of $3.23B vs. $3.01B. Shares -5.4% premarket. (PR)
  • True Religion Apparel (TRLG): Q4 EPS of $0.53 beats by $0.06. Revenue of $73M (+38.5%) vs. $68.7M. Shares flat AH. (PR)
  • USEC (USU): Q4 EPS of $0.16 in-line. Revenue of $432M vs. $440M. Sees 2009 revenue of $2.2-2.25B vs. $2.01B consensus. Shares -0.6% AH. (PR)

Today's Markets

  • Asia stocks end Thursday mostly lower, with China pacing losses on a late-day selloff. Nikkei -0.04% to 7,458. Hang Seng -0.85% to 12,895. Shanghai -3.87% to 2,121. BSE +0.59% to 8,955.
  • Europe markets have moved off their highs but remain up at midday, with banks leading the way after details of the U.K. asset protection scheme seem to be less onerous than originally feared. London +1.5%. Paris +1.5%. Frankfurt +1.8%.
  • U.S. stock futures are higher in a volatile premarket session as traders await a slate of data including Jan. durable-goods, new home sales and weekly jobless claims. Dow +1.05% to 7304. S&P +1.2% at 771. Nasdaq +1%. Crude +1.8% to $43.30. Gold -1.9% at $947.70.

Thursday's Economic Calendar

Seeking Alpha editor Eli Hoffmann contributed to this post.

]]> Thu, 26 Feb 2009 07:19:09 -0500 SA Editor Rachael Granby

  • AIG carve up? Sources say AIG (AIG) is in advanced talks with U.S. officials about a radical restructuring plan that would split the troubled insurer into at least three government-controlled divisions. Described by one insider as a 'controlled break-up,' the move could end AIG's 90-year history of independence and serve as a model for carving up other troubled institutions. Under the plan, the government would swap its 80% stake in the insurer for large stakes in three units - AIG’s Asian operations, its international life insurance business and the US personal lines business. In return, officials would relax the terms of AIG's loans or even cancel a large portion of them. AIG would remain as a holding company but could disappear if the government decides to recoup taxpayer money by selling or listing the three divisions separately. The overhaul could be announced Monday.
  • Citi deal imminent. Citigroup (C) is very close to an agreement to boost the government's stake in the ailing company to 40%, and an announcement could come as soon as today. Executives have been rushing to identify potential problems from an increased government stake, including local laws in certain countries that would require Citigroup to apply for new charters or, in the case of Mexico, to potentially give up some or all of ownership in Grupo Financiero Banamex, the No. 2 bank in Mexico by assets, if the government takes more than a 10% stake in Citigroup.
  • The unstoppable budget deficit. The White House is projecting a $1.75T deficit for the current fiscal year, including a new $250B slush fund in case banks need more money. Officials say Obama has no plans to use the $250B, but wanted to include an 'overly conservative' placeholder just in case. The 134-page budget outlines health, tax and energy priorities, and includes a 10-year $634B reserve fund to help pay for Obama's proposed healthcare reforms and $537B for the U.S. military. The White House will also propose $634B in new taxes on upper-income Americans. The budget is due at 11:00 ET.
  • UBS shakes up top job. In the latest shake-up of its top management, UBS (UBS) announced the surprise departure of CEO Marcel Rohner. The position will be filled by Oswald Grubel, the former CEO at rival Credit Suisse (CS). In a statement, UBS said Rohner had told the board last month that he planned to retire as CEO after the conclusion of the "ongoing investment bank repositioning and wealth management restructuring phase," but is now leaving immediately. Rohner's sudden departure comes after UBS agreed to a $780M settlement with the Justice Department and amid an ongoing civil inquiry into tax evasion. Shares +10.0% premarket (7:00 ET).
  • Record loss at RBS. Royal Bank of Scotland (RBS) posted a full year loss of £24.1B ($34.3B), the biggest loss in British history. The record loss reflected a £16.2B write down against acquisitions and another £7.9B in operating losses. Reacting to the losses, RBS will put £325B of investments into a state insurance program. In return, the bank will pay a fee of £6.5B over seven years in the form of preference shares. RBS will also shift £540B of toxic assets to a new unit, including derivatives and mortgage-backed securities, and will increase lending by £50B over the next two years while aiming to reduce expenses by £2.5B. Shares +20.2% premarket (7:00 ET).
  • Exelon gains ground in NRG bid. Exelon (EXC) said its $6B tender offer for NRG Energy (NRG) won more than 51% of the outstanding shares, giving it strong leverage in its hostile pursuit of NRG. NRG has already rejected Exelon's offer twice, saying the price 'manifestly undervalues' NRG and expressing doubt whether Exelon would be able to finance the transaction. Winning the tender gives Exelon the right to acquire NRG, assuming Exelon shareholders agree to the deal and it receives regulatory approval. However, Exelon has good reason to try for a friendly acquisition since it will make the regulatory approval easier and will allow Exelon access to NRG's books.
  • BoA considers private bank sale. Bank of America (BAC) is reportedly looking to sell a private bank it inherited from Merrill Lynch. Merrill bought the bank in question, First Republic Bank, for $1.8B in September 2007. At the time, First Republic had $10B of deposits. Possible buyers include Goldman Sachs (GS) and Morgan Stanley (MS), both of which are trying to expand their deposit-gathering businesses.
  • Another fraud bites the dust. The most recent financial fraud to come to light revolves around two money managers who have been accused of misappropriating at least $533M to fund their own lavish lifestyles. The two men, Paul Greenwood and Stephen Walsh, were arrested by the FBI and face criminal charges of conspiracy, securities fraud and wire fraud. They are accused of running a fraudulent investment-advisory scheme since 1996 in which the men raised $668M from institutional clients and pocketed most of the money. Alleged victims include Carnegie Mellon University, the University of Pittsburgh and the Iowa Public Employees Retirement System.
  • Home sales fall. Existing Home Sales fell 5.3% to 4.49M/year in January, and are down 8.6% from a year ago. NAR's Lawrence Yun blamed the drop on would-be buyers waiting for more clarity on the nature of a government housing stimulus. Median prices -14.8% from a year ago.

Earnings: Thursday Before Open

  • American Tower (AMT): Q4 EPS of $0.21 beats by $0.07. Revenue of $408M (+8%) vs. $407M. (PR)
  • Boyd Gaming (BYD): Q4 EPS of $0.13 in-line. Revenue of $422.6M (-11.7%) vs. $423.4M. (PR)
  • Cablevision (CVC): Q4 EPS of -$1.11 misses by $1.44. Revenue of $2.05B (+11.4%) vs. $2.06B. (PR)
  • Continental Resources (CLR): Q4 EPS of $0.00 misses by $0.19. Revenue of $136M (-14.6%) vs. $160M. (PR)
  • Digital Realty Trust (DLR): Q4 EPS of $0.20 beats by $0.06. Revenue of $147M (+3.6%) vs. $144M. (PR)
  • Dynegy (DYN): Q4 EPS of -$0.01 beats by $0.01. Revenue of $795M (+9.8%) vs. $769M. (PR)
  • El Paso (EP): Q4 EPS of $0.21 in-line. Revenue of $1.3B (+6.4%) vs. $1.2B. (PR)
  • EMCOR Group (EME): Q4 EPS of $0.90 beats by $0.16. Revenue of $1.7B (-4.9%) vs. $1.8B. (PR)
  • ENSCO International (ESV): Q4 EPS of $2.14 beats by $0.08. Revenue of $622M (+20.2%) vs. $616M. (PR)
  • First American (FAF): Q4 EPS of $0.10 beats by $0.03. Revenue of $1.35B (-28%) vs. $1.43B. (PR)
  • Frontier Oil (FTO): Q4 EPS of $0.32 misses by $0.09. Revenue of $1.35B (+2.2%) vs. $1.61B. (PR)
  • Frontline (FRO): Q4 EPS of $1.03 misses by $0.08. Revenue of $452M (+36.2%) vs. $328M. (PR)
  • GM (GM): Q4 EPS of -$9.65 misses by $2.25 (-that's a $9.6B loss). Revenue of $30.8B vs. $35.13B. GM burned through another $6.2B in cash. 2008 sales of 8.35M vehicles, down 11%. (PR)
  • Global Industries (GLBL): Q4 EPS of -$0.24 misses by $0.17. Revenue of $250M (-4.8%) vs. $242M. (PR)
  • HRPT Properties Trust (HRP): Q4 EPS of $0.05 in-line. Revenue of $218M (+9.7%) vs. $211M. (PR)
  • Huntsman (HUN): Q4 EPS of -$0.38 misses by $0.33. Revenue of $2.05B (-18.2%) vs. $2.44B. (PR)
  • Iron Mountain (IRM): Q4 EPS of $0.01 misses by $0.16. Revenue of $753M (+3.6%) in-line. (PR)
  • King Pharmaceuticals (KG): Q4 EPS of $0.24 beats by $0.01. Revenue of $348M (-34.8%) vs. $345M. (PR)
  • Lamar Advertising Company (LAMR): Q4 EPS of -$0.08 misses by $0.01. Revenue of $279M (-8.4%) vs. $285M. (PR)
  • Limited Brands (LTD): Q4 EPS of $0.68 beats by $0.04. Revenue of $3.0B (-8.7%) in-line. (PR)
  • Linn Energy LLC (LINE): Q4 EPS of $0.00 misses by $0.32. Revenue of $155M (+2.7%) vs. $163M. Shares -2.6% premarket. (PR)
  • LKQ (LKQX): Q4 EPS of $0.10 misses by $0.04. Revenue of $470M (+13.4%) vs. $490M. (PR)
  • MetroPCS Communications (PCS): Q4 EPS of $0.04 misses by $0.03. Revenue of $724M (+22.4%) vs. $765M. (PR)
  • Nasdaq (NDAQ): Q4 EPS of $0.53 beats by $0.02. Revenue of $403M (-3.9%) vs. $414M. (PR)
  • NII Holdings (NIHD): Q4 EPS of $0.05 misses by $0.38. Revenue of $989.5M (+5.3%) vs. $1.0B. (PR)
  • Omnicare (OCR): Q4 EPS of $0.66 beats by $0.03. Revenue of $1.6B (+2.7%) in-line. (PR)
  • RAIT Financial Trust (RAS): Q4 EPS of $0.33 misses by $0.05. Revenue of $57.4M (-1.7%) vs. $54.9M. (PR)
  • Rowan Companies (RDC): Q4 EPS of $1.28 beats by $0.19. Revenue of $613M (-1.7%) vs. $615M. (PR)
  • Safeway (SWY): Q4 EPS of $0.80 misses by $0.01. Revenue of $13.82B (+3.4%) vs. $14.29B. (beats by $0.26. Revenue of $13.3B (-11.9%) vs. $14.0B. (PR)
  • Sonus Networks (SONS): Q4 EPS of -$0.37 misses by $0.35. Revenue of $89.5M (-7.8%) vs. $64.1M. (PR)
  • Southern Union Company (SUG): Q4 EPS of $0.47 beats by $0.03. Revenue of $727M (+75.3%) vs. $692M. (PR)
  • Warnaco Group (WRC): Q4 EPS of $0.29 beats by $0.14. Revenue of $446M (-4.4%) vs. $451M. (PR)

Earnings: Wednesday After Close

  • Aruba Networks (ARUN): FQ2 EPS of $0.02 beats by $0.02. Revenue of $47.7M (+17.5%) vs. $45.5M. Shares +11.6% AH. (PR, earnings call transcript)
  • Assured Guaranty (AGO): Q4 EPS of $0.04 beats by $0.03. Revenue of $123.3M (+22.1%) vs. $135.6M. (PR)
  • Avis Budget Group (CAR): Q4 EPS of -$1.08 misses by $0.61. Revenue of $1.26B (-9%) in-line. Shares -2% AH. (PR)
  • Express Scripts (ESRX): Q4 EPS of $0.83 in-line. Revenue of $5.51B (-0.9%) vs. $5.45B. Shares -1.6% AH. (PR)
  • El Paso (EP): Sees 2009 EPS of $0.85-1.05 vs. $1.11 consensus. Shares -2.65% AH. (PR)
  • Flowserve (FLS): Q4 EPS of $20.3 beats by $0.14. Revenue of $1.17B (+5.4%) vs. $1.26B. Shares +7.3% AH. (PR)
  • Fluor (FLR): Q4 EPS of $1.04 beats by $0.12. Revenue of $6.07B (+28.9%) vs. $5.81B. Sees 2009 EPS of $3.90-4.20 vs. $3.76. Shares +12.3% AH. (PR, earnings call transcript)
  • Genco Shipping (GNK): Q4 EPS of $1.55 misses by $0.01. Revenue of $101.6M (+54.6%) vs. $100.2M. Shares +1.5% AH. (PR)
  • Goodrich Petroleum (GDP): Q4 EPS of -$0.01 beats by $0.06. Revenue of $44.1M (+35.7%) vs. $49.9M. (PR)
  • Medicis Pharmaceutical (MRX): Q4 EPS of $0.42 beats by $0.11. Revenue of $136M (+1.4%) vs. $127M. Sees Q1 EPS of $0.15-0.18 vs. $0.30 and revenue of $125-130M vs. $129.5M. (PR)
  • Netease.com (NTES): Q4 EPS of $0.65 beats by $0.21. Revenue of $117.5M (-0.6%) in-line. Shares +5.3% AH. (PR)
  • Plains Exploration & Production Company (PXP): Q4 EPS of -$0.31 misses by $0.73. Revenue of $-33.5M vs. $328M. Shares -6.9% AH. (PR)
  • Salesforce.com (CRM): Q4 EPS of $0.11 beats by $0.04. Revenue of $290M vs. $285M. Sees full-year EPS of $0.54-0.55 vs. $0.51. "Salesforce.com is proud to be the first billion dollar cloud computing company." Shares +5.3% AH. (PR, earnings call transcript)
  • Savient Pharmaceuticals (SVNT): Q4 EPS of -$0.45 misses by $0.12. (PR)
  • Service International (SCI): Q4 EPS of $0.09 beats by $0.01. Revenue of $517M vs. $510M. Sees 2009 EPS of $0.26-0.36 vs. $0.38. Shares -0.3% AH. (PR)
  • Tenaris (TS): Q4 EPS of $1.01 beats by $0.02. Revenue of $3.23B vs. $3.01B. Shares -5.4% premarket. (PR)
  • True Religion Apparel (TRLG): Q4 EPS of $0.53 beats by $0.06. Revenue of $73M (+38.5%) vs. $68.7M. Shares flat AH. (PR)
  • USEC (USU): Q4 EPS of $0.16 in-line. Revenue of $432M vs. $440M. Sees 2009 revenue of $2.2-2.25B vs. $2.01B consensus. Shares -0.6% AH. (PR)

Today's Markets

  • Asia stocks end Thursday mostly lower, with China pacing losses on a late-day selloff. Nikkei -0.04% to 7,458. Hang Seng -0.85% to 12,895. Shanghai -3.87% to 2,121. BSE +0.59% to 8,955.
  • Europe markets have moved off their highs but remain up at midday, with banks leading the way after details of the U.K. asset protection scheme seem to be less onerous than originally feared. London +1.5%. Paris +1.5%. Frankfurt +1.8%.
  • U.S. stock futures are higher in a volatile premarket session as traders await a slate of data including Jan. durable-goods, new home sales and weekly jobless claims. Dow +1.05% to 7304. S&P +1.2% at 771. Nasdaq +1%. Crude +1.8% to $43.30. Gold -1.9% at $947.70.

Thursday's Economic Calendar

Seeking Alpha editor Eli Hoffmann contributed to this post.


Complete Story »]]> AGO AIG AMT ARUN BAC BYD C CAR CLR CRM CS CVC DIA DLR DYN EME EP ESRX ESV EXC FAF FLR FLS FRO FTO GDP GLBL GLD GMGMQ.PK GNK GS HRP HUN IRM KG LAMR LINE LKQX LTD MRX MS NDAQ NIHD NRG NTES OCR PCS PXP QQQQ RAS RBS RDC SCI SHLD SONS SPY SUG SVNT SWY TRLG TS UBS USO USU WRC SA Editor Rachael Granby Testing Benjamin Graham's Investment Criteria http://seekingalpha.com/article/121420-testing-benjamin-graham-s-investment-criteria?source=feed 121420 What would Benjamin Graham buy today?

We thought it would be interesting to try and figure out what Benjamin Graham himself would be buying in the current environment, but we quickly realized that there's not much that comes close to meeting his standards. If you're unfamiliar with Benjamin Graham (shame on you), then all you need to know is that he was a legendary investor who helped pioneer the ways of value investing, and that he taught Warren Buffett a lot of what he uses today. To become more familiar with Graham's investing methods, we highly suggest checking out his The Intelligent Investor. If you had to own one book about fundamental investing, this would most likely be it. Security Analysis is the second of Graham's must-read books, and another excellent resource. The book features the value investing philosophies of Graham and Dodd and a foreword by Warren Buffett. After you've finished reading, you'll be able to tackle balance sheets like no one else.

]]> Thu, 19 Feb 2009 06:14:36 -0500 Market Folly Market Folly submits:

What would Benjamin Graham buy today?

We thought it would be interesting to try and figure out what Benjamin Graham himself would be buying in the current environment, but we quickly realized that there's not much that comes close to meeting his standards. If you're unfamiliar with Benjamin Graham (shame on you), then all you need to know is that he was a legendary investor who helped pioneer the ways of value investing, and that he taught Warren Buffett a lot of what he uses today. To become more familiar with Graham's investing methods, we highly suggest checking out his The Intelligent Investor. If you had to own one book about fundamental investing, this would most likely be it. Security Analysis is the second of Graham's must-read books, and another excellent resource. The book features the value investing philosophies of Graham and Dodd and a foreword by Warren Buffett. After you've finished reading, you'll be able to tackle balance sheets like no one else.


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