Experts Agree Local Housing Market Stabilizing
Cascadia Investments, Inc. Acquires Multi-Family Property
FXCM Acquires Certain Assets of Hotspot FXr’s Retail Forex Business to Expand Active Trader Platform
NEW YORK, NY--(Marketwire - January 30, 2009) - Forex Capital Markets LLC (www.fxcm.com) today announced it has reached an agreement to acquire certain assets of the U.S. retail forex business of Hotspot FXr LLC to further expand the deep liquidity offered via its Active Trader platform. Hotspot FXr's affiliate, Hotspot FXi LLC, will continue to offer its platform for institutional FX trading.
"Hotspot FXr is a major innovator in the field of fair and transparent pricing. While the retail clients of Hotspot FXr will be moving to a new platform, they will continue to receive pricing which is free of influences from the dealing desk," said Drew Niv, CEO of Forex Capital Markets (FXCM). "Every price is derived from a major bank and every trade is offset. FXCM and Hotspot FXr share the same fair pricing principles."
Waste Management (WMI): Value in an essential business
"We still see a rocky road ahead this year; however, November appears to have put an important stock market bottom in place," says Jim Stack, who accurately foresaw the derivatives and housing crisis, and the market decline.
In his InvesTech Market Analyst he adds, "We are selectively taking advantage of deep values such as Waste Management (NTSE: WMI), which is selling at a compelling valuation."
"Waste Management displays the characteristics we search for in new investments including a distinct competitive advantage and solid financials.
"It is a giant in its industry; Waste Management is the largest solid waste management company in North America. Founded in 1894, it serves nearly 20 million customers.
"Its services include waste collection, transfer, disposal, recycling and resource recovery. Waste Management handles 130+ million tons of disposal each year, representing a 40-45% share of the waste disposal market.
"With the nation’s largest network of landfills, Waste Management has significant pricing power and can charge fees to competitive waste haulers who don’t own, or have access to, their own landfills.
"The company is vertically integrated and includes divisions for recycling and waste-to-energy, allowing customers to not only manage, but minimize, their waste. These portions of the business could show strong growth as 'green' initiatives continue to gain momentum.
"Waste Management boasts a strong balance sheet with free cash flow of $260 million. The company has exhibited good cost control, increasing operating margins from 24% in 2004 to nearly 27% currently.
"The stock currently yields 3.3%, well above the S&P average, and the dividend is sufficiently protected with less than a 50% payout ratio. In fact, the company has announced it will raise the dividend by 7.4% to $1.16 per share in 2009.
"This firm’s dedication to increasing shareholder value is evidenced by their 2009 expenditure plan which allocates $1.3 billion to dividends, common stock repurchases, debt reductions and acquisitions.
"In November, WMI warned that Q4 profits would be dampened due to the falling value of recycled commodities. Also, weakness in the economy portends lower waste volumes particularly in the residential and industrial segments.
"However, the strength of this company’s business model has been evident in past recessions due to the essential nature of their business. Earnings estimates for 2009 have been reduced, but are still projected above 2008 levels.
"Waste Management is currently selling at valuation levels equivalent to those at the end of the 2000-2002 bear market. Moreover, we believe this stock will remain fairly stable, even in a prolonged recession, and should definitely benefit from any economic recovery."
Wide moat boosts Waste Management (WMI)
"We still see a rocky road ahead this year; however, November appears to have put an important stock market bottom in place," says Jim Stack, who accurately foresaw the derivatives and housing crisis, and the market decline.
In his InvesTech Market Analyst he adds, "We are selectively taking advantage of deep values such as Waste Management (NTSE: WMI), which is selling at a compelling valuation."
"Waste Management displays the characteristics we search for in new investments including a distinct competitive advantage and solid financials. It is a giant in its industry; Waste Management is the largest solid waste management company in North America.
"Founded in 1894, it serves nearly 20 million customers in the commercial, industrial, municipal and residential markets.
"Its services include waste collection, transfer, disposal, recycling and resource recovery. Waste Management handles 130+ million tons of disposal each year, representing a 40-45% share of the waste disposal market.
"WMI operates through a network of nearly 300 landfills in North America. Dominant landfill ownership provides this company a wide moat and discourages competition as landfills are difficult to develop due to the need for zoning approvals and permits.
"With the nation’s largest network of landfills, Waste Management has significant pricing power and can charge fees to competitive waste haulers who don’t own, or have access to, their own landfills.
"The company is vertically integrated and includes divisions for recycling and waste-to-energy, allowing customers to not only manage, but minimize, their waste.
"It also owns or operates 16 waste-to-energy facilities and five independent power production plants where solid waste is converted to steam and sold to commercial and industrial users and electric utilities. These portions of the business could show strong growth as 'green' initiatives continue to gain momentum.
"Waste Management is the industry leader and its size, market share, and vertical integration provide distinct competitive advantages.
"Waste Management boasts a strong balance sheet with free cash flow of $260 million. The company has exhibited good cost control, increasing operating margins from 24% in 2004 to nearly 27% currently.
"Return on Equity, a measure of profitability, has also improved from 13% five years ago to 19%. While the company’s debt level is a little higher than we would like at 56% of capital, it is in line with historic levels and debt service is adequately covered with operating income equivalent to four times interest payments.
"The stock currently yields 3.3%, well above the S&P average, and the dividend is sufficiently protected with less than a 50% payout ratio. In fact, the company has announced it will raise the dividend by 7.4% to $1.16 per share in 2009.
"This firm’s dedication to increasing shareholder value is evidenced by their 2009 expenditure plan which allocates $1.3 billion to dividends, common stock repurchases, debt reductions and acquisitions.
"In November, WMI warned that Q4 profits would be dampened due to the falling value of recycled commodities. Also, weakness in the economy portends lower waste volumes particularly in the residential and industrial segments.
"However, the strength of this company’s business model has been evident in past recessions due to the essential nature of their business. The firm has also shown good pricing power which should help offset reduced demand.
"In addition, the bottom line should be buffered by lower fuel costs. Earnings estimates for 2009 have been reduced, but are still projected above 2008 levels.
"Waste Management is currently selling at valuation levels equivalent to those at the end of the 2000-2002 bear market. Primary valuation metrics, including Price/Cash Flow, Price/Revenue and Price/Earnings, are all well below their 10-year medians.
"With its strong competitive advantages, solid financials and very attractive price level, Waste Management makes a compelling addition to the Model Portfolio. Moreover, we believe this stock will remain fairly stable, even in a prolonged recession, and should definitely benefit from any economic recovery."
Abbott Laboratories (ABT)
Abbott Laboratories (<a href=http://www.zacks.com/stock/quote/abt>ABT</a>) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect high-single digit EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business. <p> Several new drug applications have recently been filed with the FDA which should accelerate sales in the pharmaceutical business. We believe ABT possesses a low risk profile and will continue to trade at an industry premium. <p> Accordingly, we reiterate our Buy recommendation with a price target of $65.Hubbell Inc. (HUB.B)
Hubbell (<a href=http://www.zacks.com/stock/quote/hub.b>HUB.B</a>) reported third quarter 2008 results that exceeded both top and bottom line expectations. The good storm season was the primary driver of growth in the last quarter, although pricing actions and acquisitions also contributed. <p> The company is benefiting from restructuring actions, with management continuing to attribute some of the margin expansion to production efficiencies and improved cost management. The share price dropped sharply in September, but has stabilized since. <p> We tend to think that there could be further downside, given the recessionary macro economic trends and the positive correlation between Hubbell's growth and the growth of the national GDP. <p> Additionally, both residential and nonresidential construction activity appears to be slowing and could worsen in 2009. Consequently, we are reiterating our Sell recommendation.Print Publishing
The publishing industry is suffering accelerating declines in circulation and ad sales. Print advertising industry-wide has been decelerating for several years, eroded by the secular migration to the Internet. We discuss NWS, GCI and MNI.Plus One Acquires TimeOut Services, Inc.
Acquisition Expands Wellness Industry Leader's Presence on West Coast and in Community Marketplace
SCG International Acquires Logistics Company Elite Packaging and Crating
Security Services Company Expands Logistics Capabilities; Hires Industry Veteran to Run New Division
Canyon Gate Medical Group Acquires Sparks Family Medicine, Ltd.
Sparks Family Medicine Marks First Canyon Gate Location in Summerlin