Risk/Reward archive
SJI's stock has underperformed peers due in part to disappointing guidance for 2018 given at its recent analyst meeting. However, if management is able to deliver on its 2019 guidance, the stock should have reasonable upside, especially since…
Continue reading →As a result of recent operating losses, Five Star Senior Living faces a restructuring with its landlord, Senior Housing Properties Trust.
Continue reading →Since floating the IPO in November 2017, Bluegreen Vacations Corporation’s (BXG) share price has come full circle. The stock opened its first day of trading at $13.55, rallied to a high of $25.91 in July and has since…
Continue reading →General Electric (GE) reported 2018 third quarter results on Tuesday, October 30. This was the first conference call for newly-installed Chairman and CEO H. Lawrence (Larry) Culp, Jr.
Continue reading →On May 18, 2018, in conjunction with the release of fiscal 2018 third quarter earnings report, Campbell Soup Company (CPB) announced a “CEO transition.” Denise M. Morrison, who had served as Campbell’s President and CEO since August 2011,…
Continue reading →AT&T completed its acquisition of Time Warner on June 14, 2018. Under the merger agreement, Time Warner shareholders received $53.75 per share in cash and 1.437 shares of AT&T stock for each TWX share held. In total, Time…
Continue reading →Besides the recent weakness at Power and Oil & Gas, GE has been grappling with legacy issues at GE Capital. Although it has been downsizing for more than a decade now – reducing its assets from $660 billion…
Continue reading →On June 26, General Electric (GE) announced the outcome of its strategic review. Besides divestiture actions already announced, the company said that it will spin-off its Healthcare business over the next 12-18 months and distribute its 62.5% stake…
Continue reading →General Electric reported disappointing 2018 second quarter GAAP earnings attributable to shareholders of $736 million or $0.07 per share, down 30% from $1.03 billion or $0.10 per share last year. Adjusted (Non-GAAP) EPS, according to the company’s definition,…
Continue reading →2018 First Quarter Results. On April 26, Arch Coal reported disappointing 2018 first quarter results. Adjusted EPS for the quarter was $2.95, up from $2.82 last year, but behind the consensus forecast of $4.22. Revenues declined 4.3% to…
Continue reading →Pressure from Declining Occupancy; But SNH Has Sufficient Financial Flexibility to Cope for Next Two Years or More.
Continue reading →CWCO reported first quarter net earnings attributable to stockholders $2.1 million or $0.14 cents per diluted share. That compares with 17Q1 net income of $2.6 million or $0.18 per diluted share. Revenues declined 2.2% to $15.7 million.
Continue reading →GAAP loss of $1.18 billion or $0.14 per share vs. a 17Q1 loss of $0.12 billion or $0.01 per share. This quarter’s loss included a $1.55 billion ($0.17 per share) charge representing the estimated cost of settling potential…
Continue reading →On Friday (4/13), General Electric (GE) filed an 8-K that quantified the impact of adopting new accounting standards (and certain voluntary changes in accounting policies) on its previously reported results for 2016 and 2017. In total, these changes…
Continue reading →On March 6, Bluegreen Vacations (BXG) reported 2017 fourth quarter net earnings attributable to shareholders of $66.5 million or $0.93 per diluted share, compared with $25.6 million or $0.36 per share in the prior year quarter.
Continue reading →Bluegreen Vacations (BXG) completed its IPO in November 2017. The company had been wholly-owned by BBX Capital (BBX). In the IPO, Bluegreen offered a total of 7.47 million shares (including, with the overallotment option, 3.74 million shares owned…
Continue reading →GE announced this morning that it will take an after-tax charge of $6.2 billion in the 2017 fourth quarter against the value of GE Capital’s run-off insurance portfolio, North American Life & Health (NALH). In addition, GE Capital…
Continue reading →“You can’t grow long-term if you can’t eat short-term. Anybody can manage short. Anybody can manage long. Balancing those two things is what management is” -Jack Welch As everyone knows, this has been a tough year for…
Continue reading →Key takeaways: Through its HPE Next transformation plan, HPE will spend $1.1 billion over the next two years to achieve annualized cost cuts of $1.5 billion by the end of 2020. It will reinvest about half of the…
Continue reading →Ken Chennault announces retirement in February 2018 and Steve Squeri will become Chairman & CEO Third Quarter EPS of $1.50 vs. $1.20 last year and consensus of $1.48 Management raised full year 2017 guidance from $5.40-$5.80 to $5.80-$5.90…
Continue reading →On Friday (10/6), after the market close, General Electric (GE) announced that three of its senior executives, all Vice Chairs – John Rice, CEO of GE’s Global Growth Operations, Beth Comstock, CEO of GE’s Business Innovations and Jeff…
Continue reading →Since it was spun off from Hewlett-Packard Company in November 2015, Hewlett Packard Enterprise Company (HPE) has made several important strategic moves to remake its business.
Continue reading →Baker Hughes and General Electric completed their merger on July 3, 2017. Baker Hughes shareholders received $17.50 in cash and one share of new Baker Hughes stock (BHGE).
Continue reading →Shares of Five Star Senior Living (FVE) have performed poorly over the past two years, even underperforming FVE’s peer group, which has significantly underperformed both the health care sector and the broader market. The industry is suffering from…
Continue reading →Public Service Enterprise Group (PSEG) is a public utility holding company whose principal direct operating subsidiaries include Public Service Electric & Gas (PSE&G), which serves 2.2 million electric customers and 1.8 million gas customers along a northeast to…
Continue reading →Arch Coal emerged from bankruptcy on October 5, 2016 and recently filed its 2016 10-K which included its fourth quarter performance (Oct. 2 to Dec. 31) as a reorganized (i.e. successor) company. With its quick emergence from Chapter…
Continue reading →UPS held an investor day in New York City on February 22, three weeks after reporting disappointing fourth quarter results. Its stock fell sharply on the earnings news, giving back all of its Trump rally gains. So far…
Continue reading →Shares of Consolidated Water (CWCO) have struggled over the past several months, extending a period of underperformance vs. peers that stretches back for more than a year. Year-to-date (through 12/9), CWCO has posted a loss (including dividends) of…
Continue reading →On October 5, Arch Coal officially exited the bankruptcy process. The exit came just short of nine months after it had filed for bankruptcy on January 11, 2016. This was a remarkable achievement, given the company’s size, the…
Continue reading →Tenaris S.A. (TS) is one of the world’s leading manufacturers of seamless and welded steel casing and tubing, otherwise known as “oil country tubular goods.” Its products are used mostly in oil & gas drilling operations.
Continue reading →On July 6, the bankruptcy court approved Arch Coal’s Third Amended Bankruptcy Plan and Disclosure Statement. That set in motion the voting process which is scheduled to end on August 31. If there are no hitches and creditors…
Continue reading →The Dow Jones U.S. Coal Mining Sector Index has more than doubled so far this year, up 117.6% through July 15, obviously much better than the broader DJ US Total Market Index’s gain of 5.7%. Much of coal’s gains…
Continue reading →PayPal’s stock has underperformed the broader market since reaching a new high of $41.75 on March 22. The stock bottomed at $34.00 on June 27 and has since bounced back to close at $38.15 today. Year-to-date, the stock…
Continue reading →Arch Coal, the second largest U.S. coal producer, is another casualty of the sharp decline in coal consumption. After a steady slide in its business that began in 2011 and accelerated when oil and natural gas prices plunged…
Continue reading →Product Pipeline Successes. Merck has enjoyed a couple of notable successes in its product pipeline over the past year. The first and most important is Keytruda (pembrolizumab), the company’s anti-PD-1 (programmed death receptor-1) immunotherapy treatment for cancer. Keytruda…
Continue reading →Shareholders of the American Express Company have had a pretty rough ride over the past few years. Since 2013, when AXP’s stock earned nearly twice the S&P 500, the stock has underperformed the broader market significantly
Continue reading →This has been an eventful year for General Electric (GE), one that brought about the most significant changes that the company has seen in its 127 year history. The company has repositioned its business mix, drastically reducing its…
Continue reading →2015 has been another strong year for the stock of American Water Works (AWK). Year-to-date (through Dec. 18), it is up 11.7% on price and has delivered a 14.5% total return. By comparison, the S&P 500 is down…
Continue reading →Campbell Soup (CPB) reported fiscal 2016 first quarter GAAP earnings of $0.62 per diluted share, compared with $0.78 in the comparable prior year period. Excluding special items, the company’s non-GAAP earnings were $0.95, compared with $0.78 last year.
Continue reading →Consolidated Water (CWCO) reported 2015 third quarter earnings of $0.12 per share, compared with $0.13 per share in the prior year comparable quarter. Revenues of $14.6 million, were down 14% from $17.0 million last year. Both earnings and…
Continue reading →The company reported a third quarter GAAP loss of $0.04 per share, much better than last year’s $0.12 loss. Adjusted (non-GAAP) EPS, which excludes (non-cash) stock-based compensation and merger-related costs was positive at $0.03, a reversal of last…
Continue reading →Consolidated Water reported net income attributable to stockholders of $2.23 million or 15 cents per share for the 2015 second quarter ended June 30. This was below last year’s $2.76 million or $0.19 per share and also a…
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