Cobra Oil & Gas Announces Clarifying Press Release
HOUSTON, TX--(Marketwire - July 31, 2009) - Cobra Oil & Gas Company (
John Murphy: ITB GIVES PURER HOMEBUILDING PLAY THAN XHB — HOUSING STOCKS TELL US SOMETHING ABOUT THE HOUSING INDUSTRY — SECOND EDITION OF THE VISUAL INVESTOR MAKES FOR GOOD SUMMER READING — TWO WEEK HIATUS
On Monday, I wrote a bullish message on the homebuilding group and suggested using the **SPDR S&P Homebuilding ETF (XHB)** as one way to participate in the housing recovery. I pointed out, however,...iFinix Corp. Attains Controlling Interest in Beckman Holdings
PLAINVIEW, NY--(Marketwire - July 31, 2009) - iFinix Corp. (
Through a series of private transactions with individual shareholders, iFinix has now completed the acquisition of 55% ownership in Beckman Holdings. Beckman is the parent company of its wholly owned subsidiary, Island Forex Currency Trading Inc. As stated earlier this year, it is iFinix's objective to build businesses in the Commodities market, the Foreign Currency market and the Equities market. The management believes that, aside from these businesses having the potential to become significant profit centers for iFinix, the company also intends to use each of these subsidiaries as platforms to launch its redeveloped, multi-facet
SP Acquisition Holdings Announces Signing of Agreement to Merge With and Recapitalize Frontier Financial Corporation
EVERETT, WA and NEW YORK, NY--(Marketwire - July 31, 2009) - Frontier Financial Corporation
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General Mills (GIS): Tasty selection
"Few investments have a proven track record of defying a sinking economy and market, but General Mills (NYSE: GIS) is among them," says Martin Weiss in his Safe Money Report.
"You probably have some of General Mills’ products in your pantry or freezer. The Minneapolis-based food firm makes everything from Cheerios and Chex cereals to Fruit Roll-Ups, Bisquick pancake mix, and Haagen-Dazs ice cream.
"This broad consumer product line has helped it deliver solid single-digit earnings growth not only in good times, but also the worst quarters of the recession. Now, in its fiscal fourth quarter ended May 31, General Mills knocked the cover off the ball.
"Its profit shot up 94%, while earnings excluding non-recurring items topped analyst estimates by a nickel per share. General Mills also hiked its full-year 2010 outlook, citing a widening out in profit margins.
"Most important for conservative investors: General Mills’ history of paying out consistent, healthy dividends. The stock’s payout has climbed from 39 cents per share two years ago to 47 cents per share today, good for an indicated yield of around 3.2% at recent prices.
"Is General Mills invulnerable to a stock market decline? Of course not. If you had bought its shares on January 1, 2008, by mid-March of this year, you would have lost money.
"But only about 3% after taking into account share price performance and dividends! In contrast, with an average S&P 500 stock held during the same period, you would have been down 55% (excluding dividends).
"That divergence in performance is very impressive. And what has really caught our attention was that recently while the S&P 500 dropped by some 70 points, General Mills shares had risen."
VisionChina (VISN): Media ‘bargain’
"If you travel by bus or subway in China, you will likely be exposed to countless screens put there by VisionChina Media (NASDAQ: VISN)," says Jim Trippon in The China Stock Digest.
"The company’s first-quarter net profit jumped 23.7% year on year to $6.7 million from $5.4 million a year earlier. In the quarter ending March 31, total revenues surged 100% year on year to $27.3 million.
"Operating profit was $6.1 million, up 35%, exceptional results for a company with a 9.1 P/E multiple. VisionChina Media says it’s expecting a surge in second quarter revenues upon easing of the global financial crisis.
"The company distributes advertising using real-time mobile digital television broadcasts to deliver content and advertising on mass transit systems in China.
"Its digital displays can be found on buses, subway trains in Beijing, and other selected locations that can receive mobile digital television broadcasts.
"In the first quarter of 2009, the company sold a total of 184,045 advertising minutes in its network compared to 162,193 minutes in the first quarter of 2008 and 281,059 minutes in the fourth quarter of 2008.
"Average advertising service revenues per broadcasting hour grew 60.6% year-over-year to $792 per broadcasting hour from $493 per broadcasting hour in the first quarter of 2008.
"Despite budget pressures in the advertising business, VisionChina says its retention and renewal rates in the first quarter of 2009 were strong, and it continues to secure contracts with a healthy mix of international and domestic advertisers.
"The stock is still selling at bargain prices of less than a quarter of the company’s 52-week high which was $25.60 We’ve st a target sell price of $20.00, and our stop loss price is $4."
Bet on Blackrock (BX): Crisis creates opportunity
"As a private equity firm, The Blackstone Group, L.P. (NYSE: BX) makes money for itself and its investors by buying distressed companies, taking them private, turning the businesses around and selling them for a profit," explains Carla Pasternak.
In her High Yield Investing, she says, "The financial crisis has created an abundance of out-of-favor and undervalued companies that have been Blackstone's bread and butter."
"Founded in 1985, the private equity firm was once the exclusive preserve of wealthy private and institutional investors like pension funds and endowments.
"It went public in 2007 and raised a massive $4 billion in one of the largest initial public offerings on record.
"The firm holds stakes in over 40 companies, manages hedge funds and other funds, and oversees corporate mergers, acquisitions, and restructurings.
"BX has paid quarterly distributions of $0.30 per share since going public. Because of the difficult and uncertain environment in late 2008/early 2009, Blackstone canceled its March 2009 dividend. Management cited the need to improve cash flow.
"However, the company reinstated the $0.30 per share dividend in June. Going forward, an annual dividend of $1.20 equates to a yield of 11.5% ($1.20/$10.48).
"While BX pays out roughly $322 million per year in common share dividends, the firm generated about $2.3 billion in free cash flow over the past year, has $776 million in cash, and an additional $400 million in liquid borrowings.
"In addition, total debt is quite manageable at just 11% of equity. That said, given the company has already cut its dividend once, investors should realize that Blackstone's distributions are by no means guaranteed.
"The firm has delivered stellar returns to its investors for years and become one of the world's premier investment managers.
"However, like any other financial firm, Blackstone has felt the pinch of the financial crisis. The company has been losing money in recent quarters, but is expected to return to profitability for 2009.
"In fact, analyst estimates call for BX to grow earnings +130% this year and +171% next year. Things have already started to turn around. Blackstone reported a first-quarter loss of $231.6 million, which was much better than the $415.2 million in the fourth quarter of 2008.
"Most of the losses came from the firm's real estate investments, as property values continued to depreciate.
"The private equity and hedge fund businesses performed better in the first quarter than in both the fourth quarter and the year-ago period because of higher performance-based fees and lower investment losses.
"Also, advisory fees were +29% higher than last year as companies sought restructuring advice in this tumultuous environment.
"In the past, the private equity segment has made huge profits through leveraged buyouts of undervalued companies that Blackstone was able to turn around and sell for a profit.
"However, in this environment the company is finding it difficult to generate that business primarily because credit for the buyouts has become either unavailable or too costly.
"In fact, Chief Executive Steve Schwarzman said that new business deals available are down -80% from a year ago. On the other end, Blackstone also is having trouble selling previously purchased companies in this market.
"On the positive side, the financial crisis has created an abundance of out-of-favor and undervalued companies that have been Blackstone's bread and butter.
"As the world's premier private equity firm, BX should get first crack at the best deals out there and be first in line to tap credit and equity markets when conditions improve.
"Although it is difficult to see the company generating the level of profits it did in past years, BX looks to be on the road to recovery and is likely to continue appreciating as market conditions improve.
"Blackstone offers a tempting double-digit yield and capital gains potential. However, given the company has shown it will cut the dividend if difficult conditions persist, BX is only appropriate for a more aggressive income investor."