By: Robert Mitkowski
Oil prices have pulled back as demand has eased and supplies have increased. But volatility is par for the course in the drilling business, and the pendulum may well swing back the other way before long.
Demand for oil began the year on an up note, given the abnormally cold temperatures in North America last winter that charged up demand. Both the regional and international pricing benchmarks, West Texas Intermediate and Brent, traded above $100 a barrel early in 2014. For a time, speculation that the long-standing ban on exporting oil from the United States might be overturned provided additional support for prices.
But supplies in North America continued to build. In 2013, the amount of oil calculated by the Department of Energy to be on hand carved out a new five-year high for most months, and that has continued to be the case in 2014. Shipments from Libya, while still not completely reliable, have recovered somewhat, as well.
Moreover, economic growth in Europe began to slip as the tensions with Russia over its foray into Crimea and Ukraine took a toll on business in the region. That has reduced petroleum demand prospects somewhat, as has less-than-spectacular growth in China.
Top 5 Financial Companies To Invest In Right Now: Standard Motor Products Inc (SMP)
Standard Motor Products, Inc. (Standard Motor Products) is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry, with a focus on the original equipment service market. The Company operates in two segments: Engine Management Segment and Temperature Control Segment. The Engine Management Segment manufactures ignition and emission parts, ignition wires, battery cables and fuel system parts. The Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories, and windshield washer system parts. In January 2014, the Company acquired the assets of Pensacola Fuel Injection, a privately-held company.
The Company�� customers consist of warehouse distributors, such as CARQUEST Corporation and NAPA Auto Parts, as well as auto parts retail chains, such as Advance Auto Parts, Inc., AutoZone, Inc., O��eilly Automotive, Inc., Canadian Tire Corporation and Pep Boys. Its customers also include national program distribution groups, such as Federated Auto Parts, Inc., All Pro/Bumper to Bumper (Aftermarket Auto Parts Alliance, Inc.), Automotive Distribution Network and The National Pronto Association, and specialty market distributors. The Company distributes parts under its own brand names, such as Standard, BWD, Intermotor, GP Sorensen, TechSmart, OEM, Four Seasons, Factory Air, EVERCO, ACi, Imperial and Hayden and through private labels, such as CARQUEST, O��eilly Import Direct and Master Pro, NAPA Echlin, NAPA Temp Products and NAPA Belden.
Engine Management Segment
The Company manufacture a line of engine management replacement parts including, electronic ignition control modules, fuel injectors, ignition wires, voltage regulators, coils, switches, emission sensors, EGR valves, distributor caps and rotors and other engine management components primarily under its brand names Standard, BWD! , Intermotor, OEM, TechSmart and GP Sorensen, and through private labels, such as CARQUEST, O��eilly Import Direct and Master Pro, NAPA Echlin and NAPA Belden. In its Engine Management Segment, replacement parts for ignition, emission control and fuel systems accounted for approximately 60% of the Company�� revenues during the year ended December 31, 2011.
Vehicles are factory-equipped with computer-controlled engine management systems to control ignition, emission and fuel injection systems. The on-board computers monitor inputs from many types of sensors located throughout the vehicle, and control a myriad of valves, injectors, switches and motors to manage engine and vehicle performance. Electronic ignition systems enable the engine to operate with improved fuel efficiency and reduced level of hazardous fumes in exhaust gases. Wire and cable parts accounted for approximately 12% of the Company�� revenues during 2011. These products include ignition (spark plug) wires, battery cables and a range of electrical wire, terminals, connectors and tools for servicing an automobile�� electrical system. The component of this product line is the sale of ignition wire sets.
Temperature Control Segment
The Company manufactures, remanufactures and markets a line of replacement parts for automotive temperature control (air conditioning (AC) and heating) systems, engine cooling systems, power window accessories and windshield washer systems, primarily under its brand names of Four Seasons, EVERCO, ACi, Hayden, Factory Air and Imperial, and through private labels, such as CARQUEST, NAPA Temp Products and Murray.
The product groups sold by its Temperature Control Segment are new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, expansion valves, heater valves, AC service tools and chemicals, fan assemblies, fan clutches, engine oil coolers, transmission coolers, wind! ow lift m! otors, motor/regulator assemblies and windshield washer pumps. The Company�� temperature control products accounted for approximately 27% of the Company�� revenues during 2011.''
The Company competes with ACDelco, Delphi Automotive PLC, Denso Corporation, Robert Bosch Corporation, Visteon Corporation, NGK/NTK, General Cable, Prestolite, United Components, Inc, ACDelco, Delphi Automotive PLC, Denso Corporation, Sanden International, Inc., Continental AG and Vista-Pro Automotive, LLC.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Standard Motor Products (NYSE: SMP ) , whose recent revenue and earnings are plotted below. - [By , Zacks Investment Research]
Standard Motor Products (SMP) makes�replacement parts for motor vehicles in the automotive aftermarket industry with an increasing focus on the original equipment service market. It has a market cap of $959 million.
Top Stocks To Buy: Vanguard Energy Index ETF (VDE)
Vanguard Energy ETF, formerly known as Vanguard Energy VIPERs, is an exchange-traded share class of Vanguard Energy Index Fund (the Fund). The Fund employs a passive management or indexing investment approach designed to track the performance of the Morgan Stanley Capital International (MSCI) US Investable Market Energy Index (the Index), an index of stocks of large, medium and small United States companies in the energy sector, as classified under the Global Industry Classification Standard (GICS).
This GICS sector is made up of companies whose businesses are dominated by activities, such as the construction or provision of oil rigs, drilling equipment, and other energy-related service and equipment (such as seismic data collection), or companies engaged in the exploration, production, marketing, refining and/or transportation of oil and gas products. The Fund seeks to replicate the Index by investing all, or substantially all, of its assets in the stocks that make up the Index.
Advisors' Opinion:- [By MONEYMORNING.COM]
I like the idea of investing in a group of the largest integrated energy companies, oil and gas explorers/producers, and energy equipment and services. It's like a call option on energy with no expiry date. One of the best alternatives in this sector is the Vanguard Energy ETF (NYSE: VDE).
Top Stocks To Buy: China GengSheng Minerals Inc. (CHGS)
China GengSheng Minerals, Inc., through its subsidiaries, operates in the materials technology industry. It develops, manufactures, and sells a range of mineral-based, heat-resistant products. The company�s products include refractory products, industrial ceramics, fracture proppants, and fine precision abrasives. Its refractory products comprise castable, coating, and dry mix materials; low-cement and non-cement castables; and pre-cast roofs that are used as linings and key components in industrial furnaces, such as steel production furnaces, ladles, vessels, and other high-temperature processing machines that operate at high temperatures in various industries. The company�s industrial ceramic products consist of abrasive balls and tiles, valves, electronic ceramics, and structural ceramics that are used as components for various end products, such as fuses, vacuum interrupters, electrical components, mud slurry pumps, and high-pressure pumps in the electric power, elec tronic component, industrial pump, and metallurgy industries. Its fracture proppant products include ball-like pellets that are used to reach pockets of oil and natural gas deposits trapped in the fractures under the ground. The company�s fine precision abrasives are primarily used for the surface-polishing and slicing of precision instruments, such as solar panels, as well as in a range of areas, including machinery manufacturing, electronics, optical glass, architecture, industry development, semiconductor, silicon chip, plastic, and lens. China GengSheng Minerals, Inc. sells its products to customers in the iron, steel, oil, glass, cement, aluminum, chemical, and solar industries in China and other parts of Asia, North America, and Europe. The company was formerly known as China Minerals Technologies, Inc. and changed its name to China GengSheng Minerals, Inc. in July 2007. China GengSheng Minerals, Inc. is based in Gongyi, the People�s Republic of China.
Advisors' Opinion:- [By Bryan Murphy]
If you're reading this, then odds are you already know that China Gengsheng Minerals Inc. (NYSEMKT:CHGS) shares are up a whopping 60% today. And, odds are good you're struggling to find a reason why CHGS are running so hard. Here's some advice - discontinue the hunt. You're not going to find a reason for all this bullishness in the headlines. Yet, there's a reason. It's just a bigger, almost too big to spot kind of reason. Either way, would-be traders can take the hint at face value.
- [By Bryan Murphy]
If you're a small cap enthusiast looking for some budding ideas, you may not need to look any further than China GengSheng Minerals, Inc. (NYSEMKT:CHGS), Bio Matrix Scientific Group Inc. (OTCMKTS:BMSN), and MER Telemanagement Solutions Ltd. (NASDAQ:MTSL). All three have either pushed themselves to the brink of a breakout, if they haven't started one already. Here's a closer technical look at MTSL, BMSN, and CHGS, and what it's going to take to get them going if they're not going already.
Top Stocks To Buy: TeliaSonera AB (TLSN)
TeliaSonera AB is a Sweden-based company engaged in the provision of network access and telecommunication services to individual and business customers. The Company is organized into four business segments: the Mobile Services segment provides mobile services, which include mobile voice and data, mobile content, Wireless Local Area Network (WLAN) Hotspots, mobile broadband and Wireless Office to the consumer and enterprise markets; the Broadband Services segment provides services for connecting homes and offices, including broadband over copper, fiber and cable, television (TV), voice over Internet, home communications services, Internet Protocol- Virtual Private Network (IP-VPN)/Business Internet, leased lines and traditional telephony; the Eurasia segment comprises mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova and Nepal, and the Other operations segment comprises Other Business Services, TeliaSonera Holding and Corporate functions. Advisors' Opinion:- [By Adam Ewing]
A sale would provide the shareholders with cash, while potentially strengthening DNA against larger rivals Elisa Oyj (ELI1V) and TeliaSonera AB. (TLSN) The IPO could be the biggest in Finland, home of Nokia Oyj (NOK1V) and ��ngry Birds��maker Rovio Entertainment Oy, since 2005.
- [By Stephen Kirkland]
Telecom Italia SpA jumped 8.4 percent after La Repubblica reported that Egyptian billionaire Naguib Sawiris may buy a stake in the phone company. The newspaper did not cite anyone. TeliaSonera AB (TLSN) slid 1.9 percent after Solidium Oy, Finland�� state-owned asset manager, started an accelerated book build to sell a stake in the Swedish telecommunications operator.
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