|
Martha
Stewart (MSO)
BRINGS Dex One (DEXO) Along For The ride |
|
Martha Stewart
(MSO -
$4.40) breaks out on
J.C. Penny announcement and brings
Dex One
(DEXO -
$1.35) along
for the ride. Dex One is a marketing solutions provider helping local
businesses and their customers connect wherever and whenever they choose to search. The company provides
online, mobile and print search marketing via their
DexKnows.com
website, print yellow pages directories and
pay-per-click ad networks in the U.S.
Last month the company said net income, cash flow from operations and total debt (including fair value discount) in
the third quarter were $22 million, $82 million and $2,552 million, respectively. "We continue to deliver on our
strategic plan and position Dex One to be the one partner local business needs to successfully navigate the
complicated and rapidly changing marketing landscape," said Dex One CEO Alfred T. Mockett in the company's
Third quarter earnings release.
J.C. Penney buys stake in Martha Stewart Living: J.C. Penney Co. Inc.
(NYSE:
JCP) bought a 16.6 percent stake in
Martha Stewart Living Omnimedia Inc.
(NYSE:
MSO) for $38.5 million, the company stated last week. Macy's is
also reviewing their relationship with Martha Stewart
which, added to the Penneys announcement
will accelerate MSOs move into a main stream
retail environment which should
reduce margins but bump up gross
revenues.
Macy's (NYSE:
M) said Wednesday that it is looking at its relationship with Martha Stewart Living Omnimedia after
department store rival J.C. Penney
announced it was buying a 16.6 percent stakes in Stewart's company. Stewart has several
Exclusive product lines at Macy's and is featured in the retailer's ads.
"In light of the proliferation of Martha Stewart-branded product in the marketplace, Macy's is reviewing the Martha
Stewart products sold at Macy's for potential changes in the future," Macy's said in a statement. "No decisions have
been made at this time."
Dex One has 50.2 million shares outstanding and has a current
market cap of $77.5 million and has not been
consistently profitable. That may
change as MSO expands its retail
offerings
Store Your Cash In Public Storage REITs:
CubeSmart (CUBE 0
$9.94) is a self-administered and self-managed real
estate investment trust (REIT), that specializes in acquiring, developing, managing and operating self-storage
properties for business and personal use under month-to-month leases. The Company's self-storage facilities (the
Properties) are located in 26 states throughout the United States, and in the District of Columbia and the United
Kingdom. It owns, operates, develops, manages and acquires self-storage facilities.
A week ago, UBS upgraded Extra Space Storage from Sell to Neutral. And analysis was conducted on the Specialized
REITs industry to measure relative performance to find stocks that have underperformed.
Entertainment Properties Trust
(NYSE:EPR) ranks first with a gain of 0.18%; Sunstone Hotel Investors (NYSE:SHO) ranks second with a gain of
0.81%; and Extra Space Storage
(NYSE:EXR) ranks third with a gain of 1.14% while
CUBE made a
nice move during the past few weeks with a gain of
approximately 13.0% from the $9.00 level.
The housing sector continues its slump so investors have turned their attentions to multi-family and apartment real
estates as a way to profit from
this dramatic change in homeownership. One of
the side effects of downsizing from a home to an
apartment, is often that the sheer volume of "things" that homeowners have accumulated, over the years, simply
won't fit in the space.
Thats why
the iShares FTSE NAREIT Residential Plus
(ARCA:
REZ), which bets on a variety of apartment real estate investment trusts (REIT), has become one of the best performers in 2011, as investors
have flocked to sector. With many analysts still predicting a terrible near-term future for the housing market,
multi-family based real estate should continue to outperform. However, with some apartment REIT valuations
getting a little rich, investors may want to bet on a side-play. Public storage real estate could be one of best ways to
play the downturn in housing.
Thers a few high priced REITS in this sector but CUBE is the Valuequities low priced REIT pick for 2012. CUBE has
approximaetly 122.6 million shares outstanding with a current maretcapilaztion of $1.2 billion. Tangible BV per share
is 7.15, with annual revenues of approximately
$1.0 billion. But the big plus here is that CUBE pays a 3.25%
dividend.
Another new low prcied big dividend play in the sector is
Preferred Apartment Communities, Inc., (APTS - $6.15)
APTS was formed to acquire multifamily properties in select targeted markets throughout the United States. It also
may acquire senior mortgage loans, subordinate loans or mezzanine debt secured by interests in multifamily
properties, membership or partnership interests in multifamily properties and other multifamily assets. And APTS
pays a hefty 18.3% dividend.
Volatile Sugar Prices Wreck
Havoc On Processors: One company in the Packaged Foods & Meats industry with the
lowest price to sales per share ratios, which often is indicator of extreme value for investors is
Imperial Sugar (NASDAQ:IPSU) with lowest price to sales ratio in the industry of 0.07. Imperial Sugar Company refines and
processes refined sugar through cane sugar refineries, molasses desugarization facilities, and beet sugar factories.
The Company also operates packaging, ingredient, warehouse distribution and terminal facilities.
IPSU has had its fair share of troubles this year and has seen its shares move between a 52-week high of $25.68 and a
52-week low of $4.36. And in the process, IPSU has achieved the third lowest forward P/E Ratio in the low margin
Packaged Foods & Meats Industry.
Imperial Sugar has approximately 13.0 million shares outstanding with a market capitalization of approximatleyt $60
million. IPSDU is not profitable but does pay a samll dividend. So, if you
believe in turn around stories than IPSU might be a sweet deal for patient investors.
No Ones Getting Any Younger: Tenet Healthcare Corporation
(NYSE: THC -
$4.33)
is an investor-owned company that provides health care services through the operation of acute care hospitals and related health care facilities. All of Tenet's operations are conducted through its subsidiaries and affiliates. Its business includes inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment. At December 31, 2010, its subsidiaries operated 49 general hospitals, including four academic medical centers, and a critical access hospital, with a total of 13,428 licensed beds, serving urban and suburban communities in 11 states. Of those hospitals, 45 were owned by its subsidiaries and four were owned by third parties and leased by subsidiaries. At December 31, 2010, its subsidiaries operated a long-term acute care hospital and owned or leased 46 medical office buildings, all of which were located on or nearby, the general hospital campuses.
With an aging boomer population which creates a need for acute care facilities, THC is well positioned to to take advantage of this trend. Book Value per share is approximately 3.73, which is not too far from its current trading price.
THC recently completed its previously announced cash tender offer to purchase any and all of the $714.012 million aggregate principal amount outstanding of its 9.0% Senior Secured Notes due 2015. Tenet purchased these notes with some of the net proceeds from its private offering of $900 million aggregate principal amount of 6.25% Senior Secured Notes due 2018. That manuver shaves 2.75% off their debt service on $714
million dollars which should add to cash flows in the
coming quarters.
THC has a current maerket cap of just over $1.2 billion with an aannual revenue run rate of over $10.0 billion, which creates a favorbale vaulation for the Compnay at its current price levels. Even though I don't see THC buying Sun Healthcare Group, Inc. (SUNH) in the near future, the Company does have acquistion opportunituies availabe that could increase the Companys fioot print
substantially in years to come, and don't discount a
dividend commencement announcement in 2012.
Is
the Dry Bulk shipping business
finally bottoming out? Diana Shipping Inc.
(NYSE:DSX -
$7.90), reported net income of $26.4 million for the third quarter of 2011, compared to net income of $33.8 million reported in the third quarter of 2010. On the surface this may not appear to be growth
story but, Diana Shipping is a global provider of shipping transportation
services which is still very much
in demand.
It specialize in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. The Company's fleet consists of 23 dry bulk carriers, of which 14 are Panamax, one is Post-Panamax and eight are Capesize dry bulk carriers, having a combined carrying capacity of approximately 2.5 million dead weight tons
(dwt).
DSX maintains Share Repurchase Program:
I'm not a big fan of share repurchase programs but this one is
happening with a stock trading at some fairly depressed
levels. In a vote of
confidence, the Board of Directors has authorized a new share repurchase program for up to U.S. $100 million of the
Company's common shares, which may be repurchased from time to time until December 31, 2012. The new authorization replaces the Company's previous share repurchase program, which was scheduled to expire on December 31, 2011. The Company noted that it did not repurchase any shares under the prior buyback authorization.
DSX
might run into some headwinds at
this $8.00 level, soon after the
share repurchase program ends, but
eventually, Valuequities looks for
DSX to trend higher, back up to the
$10.00 level even with a slowing
global economy.
|
Valuequities
DISCLAIMER:
DO NOT BASE
ANY
INVESTMENT
DECISION
UPON ANY
MATERIALS
FOUND IN
THIS
PUBLICATION.
We are not
registered
as a
securities
broker-dealer
of an
investment
advisor
either with
the US
Securities
and Exchange
Commission
(the
"SEC")
or with any
state
securities
regulatory
authority.
We are
neither
licensed nor
qualified to
provide
investment
advice. The
information
contained in
our
publications
should be
viewed as
commercial
advertisement
and is not
intended to
be
investment
advice. This
publication
is not
provided to
any
particular
individual
with a view
toward their
investment
circumstances.
The
information
contained in
our
publications
are not to
be
considered
an offer to
buy or sell
securities.
We
distribute
opinions,
comments and
information
free of
charge to
individuals
who wish to
receive
them. Our
advertisements
and website
have been
prepared for
informational
purposes
only and are
not intended
to be used
as a
complete
source of
information
on any
particular
company. An
individual
should never
invest in
the
securities
of any of
the
companies
profiles
based solely
on
information
contained in
our
publications.
Individuals
should
assume that
all
information
contained in
these
publications
about
profiled
companies is
not trust
worthy
unless
verified by
their own
independent
research.
Any
individual
who chooses
to invest in
any
securities
should do so
with
caution.
Investing in
securities
is
speculative
and carries
a high
degree of
risk; you
may lose
some of all
of the money
that is
invested.
Always
research
your own
investments
and consult
with a
registered
investment
advisor or
licensed
stock broker
before
investing.
This
publication
is a free
service of
valuequities.com
and Hanover
Financial
Services,
a
professional
business
development
and marketing
consulting
firm that
has not been
paid a fee for the
distribution
of this
publication,
but is long shares
of Preferred
Apartment
Communities.
Any
compensation
or ownership
of
securities
in the
Companies
mentioned in
this
publication constitutes
a conflict
of interest
as to our
ability to
remain
objective in
our
communication
regarding
the profiled
companies.
Investors
should
always consult
with a
registered
investment
advisor,
licensed
stock broker
or other
investment
professional
before
investing in
any of the
companies
mentioned in
this publication.
HFS reserves
the right to
buy, own
and/or sell
the shares
in any of
the
companies
mentioned in
this or any
of our publications
at any time.
All direct
and third
party
compensation
received
will be
disclosed
within each
individual
alert in
accordance
with section
17(b) of the
Securities
Act of 1933
and 1934.
If
for any
reason you
do not want
to receive
this type of
information
from us in
the future,
simply click
on the cancel
subscription link. |
|
