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Analyst Calls: AAPL, CYH, DIS, ISRG, IVR, NYT, SNDK, TWX, VIA, VMC, WFMI ...

Analyst Upgrades

  • Soleil upgraded Community Health (CYH) to buy from hold based on expectations for improved 2011 demand. The firm has a $40 price target on the stock.
  • Wunderlich upgraded Invesco Mortgage (IVR) to buy from hold following the company's better-than-expected Q3 dividend. The firm also raised its target price for shares to $23.50 from $21.50.
  • Goldman upgraded SuccessFactors (SFSF) to conviction buy from buy, citing cloud exposure.
  • Vulcan Materials (VMC) was upgraded to buy from hold at Jefferies.
  • Comstock Resources (CRK) was upgraded to buy from neutral at Ladenburg.
  • Trimble Navigation (TRMB) was upgraded to buy from hold at Canaccord.

Continue reading Analyst Calls: AAPL, CYH, DIS, ISRG, IVR, NYT, SNDK, TWX, VIA, VMC, WFMI ...

Bullish and Bearish Volatility Skews: ENB, FTR, HBHC, GA, PBT, SPH

Option investors took a bullish interest in the Oil & Gas Pipelines industry and bearish interest in the Business Services industry on Tuesday.

Bullish Volatility Skews

  • Enbridge Inc. (ENB) -- part of the Oil & Gas Pipelines industry -- came in at the top with a volatility skew of 1.25. This may come as a surprise as ENB is down -4.27% for the past month.

Continue reading Bullish and Bearish Volatility Skews: ENB, FTR, HBHC, GA, PBT, SPH

Dividend Detective's income favorites

What are the best buys among dividend-paying issues? In his Dividend Detective newsletter, Harry Domash focuses on for income-generating ideas for long-term investors.

Here, the advisor reviews some of his latest buys among master limited partnerships, preferreds and yield-oriented closed-end funds.

"Among energy partnerships, we're adding two new picks to the portfolio with a buy rating. First, NuStar Energy (NYSE: NS), currently yielding 8.4%, operates crude oil and refined product pipelines and associated facilities.

"NuStar recently acquired asphalt refining and terminal facilities, a business that's expected to boom once the government supported highway construction projects kick in.

Continue reading Dividend Detective's income favorites

Suburban Propane Partners (SPH): Psych 101

This is the second in a series of trend-spotting tips from Hilary Kramer's newly-released book, Ahead of the Curve.

One of the key tips in my recent book on trends is a point that informs all the rest of my thinking about investing: The market is driven by psychology. Companies make their profits by figuring out what people want, and what people want is influenced by their feelings and emotions. In turn, the stock market is driven by impulse and emotion. A savvy student of human nature can use this fact to boost his or her portfolio.

Take a company like Suburban Propane Partners (NYSE: SPH), which I've recommended several times now. There are several "Psych 101" reasons I like this stock. One is that once a customer has signed on with a propane service, he or she tends to find the process of switching suppliers too onerous to bother. This allows a company like SPH the ability to preserve its revenues and even to charge higher rates than one might expect.

Continue reading Suburban Propane Partners (SPH): Psych 101

Suburban Propane (SPH): Still going strong

Back in December 2005, I picked Suburban Propane Partners Lp (NYSE: SPH), which sells propane and fuel oil. I liked the fact that the stock was in the mid-$20's and that its propane business n particular enjoyed captive customers due to the difficulty of switching services. I also felt it was under-priced at the time.

The stock price doubled between then and last month; although since then it has lost some ground. But in my thinking this only provides investors to buy SPH at a slight discount. In fact, I hear that the stock slipped down recently because a large hedge fund ran into some trouble and needed to liquidate many of its winners....SPH being one of them.

2007 has been going well so far for SPH. Despite warm winter temperatures in the first quarter, particularly in December, which saw limited revenue growth, operating income was up 43% over the first quarter of 2006. The second quarter saw revenues grow more, and net income was up about 25% over the second quarter of 2006. These strong margins are due in large part to some savvy cost cutting -- SPH cut off some less profitable customers, reduced fleet and labor costs, and reorganized its HVAC division -- and these cuts should continue to deliver profits going forward. I also like the fact that SPH has returned these profits to investors with an excellent dividend yield of 6.5%.

On a less shiny note: There isn't much room for growth, except by acquisition, though, so it may be difficult for SPH to dramatically increase revenues.

Type of Stock: A propane company with steady profits and a very nice dividend.

Price Target: SPH is trading in the low $40s after nearly hitting $50 in July. With the dividend providing protection against a downside, I think this is a solid buy below $45, but if you see it drop below $40, I think it's a no brainer.

Note: I own shares of SPH.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com

Suburban Propane Partners, L. P. : How much is left in the tank?

I've recommended Suburban Propane Partners, L. P. (NYSE:SPH) twice before. Once was in December 2005, when the stock was trading just below $25, and I predicted it would hit the high $20's over 2006 and give you a great dividend (the yield then was almost 10%). The stock has been climbing steadily ever since.

In August 2006, I recommended the company again, when it was trading around $34. I figured it would continue to rise to about $37 or so by the end of the year, and continue to deliver that dividend.

Well, the stock is now just hovering at near $42, and this is where I'm beginning to think you might want to be careful. I don't think this is a bad investment for someone who just wants the dividend -- the current yield is about 7% -- but I don't think this stock is going to keep climbing the way it has been. This isn't SPH's fault: This company has been run very well and its most recent results showed the company making a profit despite drastically reduced revenues caused by an unusually warm early winter. SPH's management made a concerted effort to move away from its less profitable divisions, and engaged in significant cost cutting, and so far it seems to have paid off.

But take care. Even if the company continues to be well run and continues to enjoy its reliable customer base, I don't see that much upside for the stock, or in this business as a whole. The fuel oil market is pretty much mature, and propane isn't likely to take off, and I think SPH will have trouble cutting costs much more without hurting its service.

Again, this is a solid, excellent company. But I'd only get in at this point if you're looking for a nice dividend and
maybe a dollar or two of stock growth. There's always the chance of an acquisition, however!

Type of stock: A well run heating fuel business that has nearly doubled over the past fourteen months. I hope you all made money on this pick!

Price target: If you're looking for more than a dividend, don't buy SPH unless it drops below $40. I think it's
unlikely to see much more growth -- this has been a magnificent run! But, if you see it drop to around $35 or less, I'd definitely grab it. You won't go wrong.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

Symbol Lookup
IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 27, 2012: 04:02 PM

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