I'm window shopping for shares again, and there are plenty of goodies for sale. Should I pop Petrofac� (LSE: PFC ) into my basket?
Just the 'facs
These are tough times for oil stocks, with Brent crude falling below $100 a barrel on fears of a China and U.S. slowdown and weak demand from Europe. Oil services company Petrofac looked cheap last month, when you could buy it for around 拢15. Today, you would pay just 拢13.40. Is this a great time to buy?
Petrofac's share price is now down a meaty 20% over the last three months, despite signing a couple of lucrative contracts in April. Last week, it announced it had won the lion's share of a $3.7 billion deal to develop oil fields for the Abu Dhabi National Oil Company. That followed a $500 million contract from the Abu Dhabi Marine Operating Company. My suspicions that Petrofac is being unfairly punished by a wider market sell-off were confirmed by its recent full-year results, which revealed a 17% rise in profits, neatly matched with a 17% dividend hike.
Top 5 Oil Stocks To Watch Right Now: Gerdau SA (GGB)
Gerdau S.A. (Gerdau), incorporated on November 20, 1961, is a producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction (DRI) in blast furnaces and in electric arc furnaces (EAF). In Brazil, the Company operates four integrated steel mills, including its mill, Acominas mill, an integrated steel mill located in the state of Minas Gerais. It has a total of 60 steel producing units globally, including joint ventures and associate companies. The joint ventures include a unit located in the United States for the production of flat rolled steel and another unit in India. The associate companies are Aceros Corsa in Mexico; Corporacion Centroamericana del Acero in Guatemala, and Industrias Nacionales (INCA) in the Dominican Republic. Through its subsidiaries and affiliates, the Company also engages in other activities related to the production and sale of steel products, including reforestation, electric power generation projects; coking coal, iron ore and pig iron production, as well as fab shops and downstream operations. On August 12, 2010, Gerdau acquired the remaining 49.1% interest in the Cleary Holdings Corp. On October 21, 2010, Gerdau, through its wholly owned subsidiary Gerdau Ameristeel acquired TAMCO Steel.
Gerdau offers a range of steel products, which are manufactured according to a variety of customer specifications. Its product mix includes crude steel (slabs, blooms and billets) sold to rolling mills, finished products for the construction industry, such as rods and structural bars, finished products for industry, such as commercial rolled steel bars and machine wire and products for farming and agriculture, such as poles, smooth wire and barbed wire. The Company also produces specialty steel products utilizing technology and normally with a certain degree of customization for the manufacture of tools and machinery, chains, locks and springs, for the automotive and mechanical industries. As of December 31, 2010, the Company operat! ed 19 steel production units in the United States and Canada through its principal entity, Gerdau Ameristeel Corporation. Gerdau operates in four business segments: Brazil (Brazil Business Operation), includes Brazil�� operations, except specialty steel; North America (North America Business Operation), includes all North American operations, except Mexico and specialty steel; Latin America (Latin America Business Operation), includes all Latin American operations, except for Brazil, and Specialty Steel (Specialty Steel Business Operation), includes the specialty steel operations in Brazil, Spain and the United States.
Crude Steel (Billets, Blooms and Slabs)
Crude steel products include billets, blooms and slabs. Billets are bars from square sections of long steel that serve as inputs for the production of wire rod, rebars and merchant bars. They are the main product of the Acominas mill. Blooms are used to manufacture products, such as springs, forged parts, heavy structural shapes and seamless tubes. Slabs are used in the steel industry for the rolling of a range of flat rolled products. Slabs are mainly used to produce hot and cold rolled coils, heavy slabs and profiles. Crude steel products are produced using either the continuous casting or conventional process.
Common Long Rolled Products
Common long rolled products represent a major portion of the Company�� production. The Company�� main long rolled products include rebars, merchant bars and profiles, which are used mainly by the construction and manufacturing industries.
Drawn Products
Drawn products include barbed and barbless fence wire, galvanized wire, fences, concrete reinforcing wire mesh, nails and clamps. These products are not exported and are sold to the manufacturing, construction and agricultural industries.
Specialty Steel Products
Gerdau produces specialty and stainless steel used in tools and machinery, chains, fasteners! , railroa! d spikes and special coil steel at its Acos Villares and Piratini units in Brazil, at Corporacion Sidenor units in Spain and at the MacSteel units in the United States. In the United States, Gerdau Ameristeel produces special sections, such as grader blades, smelter bars, light rails, super light I-beams, elevator guide rails and other products that are made on demand for the Company�� clients, which are mainly manufacturers. It is a joint venture with the Kalyani Group in India, in which Gerdau has a 73.2% interest in the joint venture.
Flat Products
Gerdau�� Acominas mill produces slabs, which are rolled into flat products, such as hot and cold steel coils, heavy plates and profiles. In addition, the Company�� distribution subsidiary, Comercial Gerdau, resells flat steel products manufactured by other Brazilian steel producers. Gerdau Ameristeel also supplies flat steel to its customers through its joint venture Gallatin located in Kentucky. Gallatin is a joint venture with ArcelorMittal, Canada, a flat steel producer, and has nominal installed capacity of 1.4 million tons of flat steel per year.
The Company competes with Commercial Metals Company, Nucor Corporation, Steel Dynamics Inc., ArcelorMittal Inc., ArcelorMittal Brasil, Usiminas Group and CSN.
Advisors' Opinion:- [By Jonas Elmerraji]
Up first is Brazilian steel stock Gerdau (GGB) a name that's been one of the NYSE's worst large-cap performers this year. Since the start of January, Gerdau is down more than 29%. Truth be told, GGB has been looking bearish for a while now. If you'd sold it the last time it looked toxic, you'd have spared yourself close to 11% losses.
But shares look primed for another leg lower from here -- and Gerdau is worth an updated look today.
GGB spent most of 2014 forming a bearish descending triangle pattern. The descending triangle is a price pattern that's formed by horizontal support below shares (in this case at $5.75) and downtrending resistance to the topside. As GGB bounced in between those two technically important levels, it was getting squeezed closer and closer to a breakdown below that $5.75 price floor. That sell trigger happened on Tuesday.
That means that if you own GGB, it's time to unload this stock.
That bearish bet is being confirmed by relative strength in GGB. This stock's relative strength line has been downtrend all year long, an indication that Gerdau is underperforming the rest of the market. That's a big red flag to heed in shares this week.
Read More: 3 Stocks Spiking on Big Volume
- [By Jeff Reeves]
Gerdau (GGB) is one of the best ways to play this trend if you believe in a commodities shift. The Brazilian steel company trades for a forward P/E of about 5, and a price/sales of just a bit more than 0.7. That�� an incredible valuation.
- [By Victor Selva] -largest producer in the sector.
Why Not No. 1?
Brazil-based Gerdau has three main advantages. Size ��though it�� a strong pro ��is not necessarily one of them. To start with, Gerdau is a highly integrated company, with annual iron ore production capacity totaling 11.5 million metric tons, enabling it to be over 80% and 40% self-sufficient in Brazil and the U.S., respectively, and thus hedging itself from volatility in raw material prices.
Second, the company has a relatively modern fleet of furnaces, mainly composed of electric arc furnaces (EAFs), which are more energy-efficient than traditional blast furnaces and should result on a more flexible supply.
Last, the location is also a positive factor: with a high geographical diversification, Gerdau has still managed to maintain a strong leadership in the markets where it operates (particularly in Brazil and the U.S.). This allows it, on the one hand, to supply many different markets and therefore reduce risks of local economic underperformances and, on the other hand, to profit from low-cost labor in Brazil. In addition, the upcoming sporting events ��2014 World Cup and 2016 Olympics ��are expected to generate a strong inflow of investments in infrastructure in the country, with Gerdau as a potential beneficiary of this.
In spite of being the biggest worldwide, I believe that ArcelorMittal doesn�� count with these characteristics. Further, as players in the industry are so atomized, being the No. 1 producer implies having only 6% of the global market share, which doesn�� give ArcelorMittal a superior bargain power than its peers. And though it�� still a very diversified and vertically integrated group, its costs will tend to be higher than those of Gerdau, since its furnaces are primarily blast furnaces and its labor expenses are higher as the company is based in Europe.
US Steel will also have to deal with an old and inefficient fleet of furnaces, w
Top Oil Service Stocks To Invest In Right Now: Box Ships Inc.(TEU)
Box Ships Inc. owns and operates containerships. As of August 16, 2011, it operated a fleet of 7 containerships with a total carrying capacity of 33,237 twenty-foot equivalent units. The company was founded in 2010 and is based in Athens, Greece.
Advisors' Opinion:- [By ABN]
TAL International Group (TAL) is one of the world's largest lessors of intermodal freight containers for the shipping business with 17 offices in 11 countries and approximately 230 third-party container depot facilities in 40 countries. TAL's fleet consists of approximately 1,238,000 containers and 2,031,000 twenty-foot equivalent units (TEU).
- [By Eric Volkman]
TearLab (NYSE: TEU ) is looking to widen its capital base by more than $32 million in an underwritten public offering of its common stock. The company is floating 2.6 million shares at a price of $13.50 apiece. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 15% of the total number of shares to cover overallotments.
Top Oil Service Stocks To Invest In Right Now: Yandex N.V.(YNDX)
Yandex N.V., an Internet and technology company, operates an Internet search engine in Russia and internationally. It offers access to a range of information available online; localized homepages for specific geographic markets; and personalized and email services. The company also provides specialized search services comprising news aggregation and information services; and price comparison services, such as product information, price comparisons, and consumer-generated reviews of products and online retailers, as well as other specialized search services, including search services for images, videos, music, theatres, televisions, weather, jobs, transportation, cars, and real estate. In addition, it offers desktop applications consisting of specialized toolbar for Web browsers, Russian-to-English and English-to-Russian keyboard layout switcher, and customized browser versions; and server applications for indexing and searching files in various formats. Further, the compan y provides text-based advertising and display advertising services for advertisers on its Websites and Yandex ad network member Websites; and Yandex.Market, a price comparison service, which offers a platform for retailers to reach consumers in a targeted manner. Additionally, it provides services and tools for businesses comprising Yandex.Webmaster that allows Webmasters to control how their Website is seen by its search engine; Yandex.Metrica, a Web statistics analysis tool; Yandex Site Search, a search tool for Webmasters and Website owners; Yandex.Mail for Domain Owners that allows users to create email accounts with their own domain names; Yandex APIs and Widgets that enable developers to use its technologies in their own businesses; and Yandex.Money, an online payment system. Yandex N.V. was incorporated in 2004 and is based in The Hague, the Netherlands.
Advisors' Opinion:- [By James E. Brumley]
To say the last three months have been tough ones for Russian search engine company Yandex NV (NASDAQ:YNDX) would be an understatement. Since the January the January 9th peak of $45.42, YNDX has fallen more than 50%, hitting a low of $21.70 today. Ouch.
- [By Roberto Pedone]
Yandex (YNDX) is an Internet company that offers access to its search engine through personal computers, mobile phones, tablets and navigation and other digital devices. This stock closed up 1.5% at $33.70 in Wednesday's trading session.
Wednesday's Volume: 3.40 million
Three-Month Average Volume: 2.46 million
Volume % Change: 80%From a technical perspective, YNDX spiked modestly higher here into new 52-week high territory with decent upside volume. This stock has been uptrending strong for the last three months and change, with shares soaring higher from its low of $19.93 to its intraday high of $34.79. During that move, shares of YNDX have been making mostly higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in YNDX as long as it's trending above some key near-term support levels at $32 or above $31.92, and then once it sustains a move or close above Wednesday's high and its new 52-week high at $34.79 with volume that's near or above 2.46 million shares. If we get that move soon, then YNDX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $39.67 to its all-time high at $42.01.
- [By MONEYMORNING.COM]
With that in mind, the four main Russian tech leaders investors should know about are:
VimpelCom Ltd. (ADR) (Nasdaq: VIP), a broad telecom play. The company provides both fixed and wireless web access, as well as mobile communications and services. The company has a number of subsidiaries that, taken together, have something like 215 million subscribers. Mobile Telesystems OJSC (ADR) (NYSE: MBT), a straight-up mobile play that operates in the Russian Federation, Ukraine, Uzbekistan, Turkmenistan, and Armenia. Plus, it has a strategic relationship with one of Europe's major players, Vodafone Group Plc (ADR) (Nasdaq: VOD). Qiwi PLC (Nasdaq: QIWI), a leader in electronic payments through kiosks, the web, and mobile platforms. It's Russia's version of PayPal - so we better not tell Carl Icahn... he might start a campaign to break up that company, too. And Yandex NV (Nasdaq: YNDX), which is the "Google of Russia." Yandex operates the world's fourth-ranked search engine and enjoys a 60% market share in its home country. Google, with about a quarter of the market, is a very distant second there.That's a great rundown on Russia's tech leaders. Are there any worth buying at this level? And why?
- [By James Brumley]
With that as the backdrop, are U.S. investors right to be eyeing the Google of Russia — search engine Yandex�(YNDX) — as the next big search opportunity? Let’s take a look.
Top Oil Service Stocks To Invest In Right Now: Hi Crush Partners LP (HCLP)
Hi Crush Partners LP, formerly Hi-Crush Partners LP, is a domestic producer of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. The Company reserves consist of Northern White sand, a resource existing in Wisconsin and limited portions of the upper Midwest region of the United States. It owns, operates and develops sand reserves and related excavation and processing facilities and will seek to acquire or develop additional facilities. The Company's 561-acre facility with integrated rail infrastructure, located near Wyeville, Wisconsin, enables it to process and deliver approximately 1,600,000 tons of frac sand per year. In June 2013, Hi Crush Partners LP announced the completion of its acquisition of D&I Silica, LLC (D&I).
The Company�� frac sand production is sold to investment grade-rated pressure pumping service providers under long-term, contracts that require its customers to pay a specified price for a specified volume of frac sand each month. The Company owns and operates the Wyeville facility, which is located in Monroe County, Wisconsin and, as of December 31, 2011, contained 48.4 million tons of proven recoverable sand reserves of mesh sizes it has contracted to sell. From the Wyeville in-service date to March 31, 2012, it had processed and sold 555,250 tons of frac sand.
Advisors' Opinion:- [By Robert Rapier and Igor Greenwald]
Some MLPs have experienced huge capital appreciation. Three–Icahn Enterprises (Nasdaq: IEP), Hi-Crush Partners (NYSE: HCLP), and The Blackstone Group (NYSE: BX)–gained over 100 percent in 2013. A fourth, American Midstream Partners (NYSE: AMID) gained 96 percent for the year.
- [By John Udovich]
Yesterday, small cap fracking stock CARBO Ceramics Inc (NYSE: CRR) surged 28.32% after reporting earnings while fracking peer U.S. Silica Holdings Inc (NYSE: SLCA) jumped 9.50% and Hi-Crush Partners LP (NYSE: HCLP) rose 3.20%���no doubt on positive sentiment. However, are investors missing anything with CARBO Ceramics and�is it too late to get in on the action there?
- [By Dan Burrows]
It sounds like a soft-drink company, but Hi-Crush Partners (HCLP) is racking up profits through the revolution in oil extraction.
This tiny company with a market cap of just $917 million makes the sand used in fracking — and as anyone in an oil-boom state like North Dakota can tell you, business is good.
Top Oil Service Stocks To Invest In Right Now: Canadian Mining Co Inc (CNG)
Canadian Mining Company Inc. (Canadian Mining) is engaged in the evaluation, acquisition, exploration, development and operation of mineral properties in British Columbia, Arizona, the United States and Sonora, Mexico. The Company�� projects include Bullard Pass Property, and Raquel 3 Concession. During the fiscal year ended June 30, 2012 (fiscal 2012), the Company had interests in two mineral properties located in British Columbia: Sun Group and Bromley Creek. In British Columbia, the Company�� principal property interest is its Bromley Creek zeolite project, which consists of a total of one mineral lease and six mineral claims. The Company has contiguous claim, number 305975, located in the Similkameen Mining District of British Columbia. The total claim area includes 843.468 hectares. During fiscal 2012, Canadian Mining completed phase one of a drilling program in Bullard Pass Gold Property. Advisors' Opinion:- [By Tyler Laundon]
It has a vision of building America's Natural Gas Highway. The project consists of a compressed natural gas (CNG) and liquefied natural gas (LNG) fuel-station network connecting 48 states.
Top Oil Service Stocks To Invest In Right Now: KB Home (KBH)
KB Home is a homebuilding company. The Company constructs and sells homes through its operating divisions under the name KB Home. The Company operates in nine states and 32 markets, including California, Arizona, Nevada, Colorado, Texas, Florida, Maryland, North Carolina and Virginia. The Company organizes its homebuilding operations into four segments: West Coast, Southwest, Central and Southeast. In July 2012, it acquired land within the Elworthy Ranch property in the town of Danville. In September 2012, it acquired Mason Ranch, which is a 330-acre land asset in Cedar Park/Leander West, submarkets in metropolitan Austin. In December 2012, the Company acquired 65 lots in Fuquay-Varina, N.C.
Homebuilding
The Company�� homebuilding operations offers a variety of homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family homes, townhomes and condominiums. It offers homes in development communities, at urban in-fill locations and as part of mixed-use projects. During the fiscal year ended, November 30, 2011 (fiscal 2011), the Company, through its homebuilding segment, delivered 5,812 homes. During fiscal 2011, homebuilding operations accounted for 99.2% of the total revenues.
Financial Services
The financial services segment provides title and insurance services to its homebuyers. This segment also provided mortgage banking services to the Company�� homebuyers indirectly through KBA Mortgage, LLC (KBA Mortgage), a former unconsolidated joint venture of a subsidiary of ours and a subsidiary of Bank of America, N.A., from the venture�� formation until June 30, 2011, when it ceased offering mortgage banking services. Effective June 27, 2011, it entered into a marketing services agreement with MetLife Home Loans, a division of MetLife Bank, N.A. Under the agreement, MetLife Home Loans��personnel, located on site at several of its new home communities, can offer financing options and re! sidential consumer mortgage loan products to its homebuyers, and originate residential consumer mortgage loans for homebuyers who elect to use MetLife Home Loans. The Company�� homebuyers may also elect to use other providers of mortgage banking services. Its financial services operations accounted for 0.8% of the Company�� total revenues in fiscal 2011.
Advisors' Opinion:- [By James Brumley]
And, even if Twitter does continue to grow at its rapid pace, with the market’s expectations as high as they are, there’s no margin for error or shortcomings.
Stocks to Avoid #3: KB Home (KBH)While the home construction industry continues to heal as a whole, it’s still a somewhat uneven recovery. The far-western part of the United States, for instance, isn’t experiencing the same real estate rebound most of the rest of the country is enjoying.
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