Analyst Upgrades

• Philip Morris (PM) to conviction buy from buy at Goldman.
• Peet's Coffee (PEET) to neutral from sell at Janney Capital.
• Cephalon (CEPH) to equal weight from underweight at Morgan Stanley.
• StoneMor Partners (STON) to outperform from neutral at RW Baird.
• Tibco (TIBX) to buy from underperform at BofA/Merrill.
• Apollo Group (APOL) to outperform from market perform at BMO Capital.

Continue reading Analyst Calls: APOL, CEPH, DELL, GCI, GOLD, KSS, LEN, PEET, PM ...

Analyst Calls: APOL, CEPH, DELL, GCI, GOLD, KSS, LEN, PEET, PM ... originally appeared on BloggingStocks on Wed, 30 Mar 2011 11:20:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Tyco Electronics (TEL) and Weight Watchers (WTW) to buy from neutral, and Smithfield Foods (SFD) to buy from underperform, at BofA/Merrill.
• Red Hat (RHT) to overweight from equal weight at Morgan Stanley.
• Gold Fields (GFI) to overweight from neutral at HSBC.
• Novartis (NVS) to outperform from neutral and GlaxoSmithKline (GSK) to neutral from underperform at Credit Suisse.
• Dollar General (DG) to buy from hold at ThinkEquity.
• Eagle Rock Energy (EROC) to outperform from sector perform at RBC Capital.

Continue reading Analyst Calls: AZN, DG, GSK, NBS, NRGY, NVS, RHT, SFD, STX, TYC ...

Analyst Calls: AZN, DG, GSK, NBS, NRGY, NVS, RHT, SFD, STX, TYC ... originally appeared on BloggingStocks on Tue, 07 Dec 2010 11:50:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• FBR Capital upgraded Overseas Shipholding (NYSE: OSG) to Outperform from Market Perform following the Q3 results as it believes the worst quarters are behind the company. The firm raised its target on shares to $48 from $35.
• Deutsche Bank upgraded Corporate Executive Board (NASDAQ: EXBD) to Hold from Sell following the Q3 results to reflect the company's lower costs. The firm raised its target on shares to $22 from $18.
• RBC Capital upgraded Enbridge (NYSE: EEQ) to Sector Perform from Underperform after the company's partnership produced significantly higher than expected DCF. In addition, the firm raised its price target by $5 per unit to $46 to reflect an improved distribution schedule and more favorable debt leverage.
• Royal Dutch Shell (NYSE: RDS.A) was upgraded to Neutral from Underperform at Credit Suisse.
• BioForm Medical (NASDAQ: BFRM) was upgraded to Overweight from Neutral at Piper Jaffray.
• Alliance Data Systems (NYSE: ADS) was upgraded to Buy from Neutral at SunTrust.

Continue reading Analyst upgrades, downgrades and initiations: ART, BBY, HEV, NVDA, OSG, RDS.A ...

Analyst upgrades, downgrades and initiations: ART, BBY, HEV, NVDA, OSG, RDS.A ... originally appeared on BloggingStocks on Tue, 03 Nov 2009 11:40:00 EST. Please see our terms for use of feeds.

This charming pic-toon of moderation comes from one of my talented long time friends, Ron Overmyer, who has allowed me to share it with our readers. He does a weekly email blast and this is one of his tamer commentaries, one that might give us pause to consider what it means to be objective.

I thought I would take a moment to shout out to any moderates in the audience and say that I too have worried that some of my colleagues may have sacrificed their reputations for objectivity by writing some posts that could be viewed as borderline paid political announcements. Some readers have quipped that this should be included in the disclosure. However, on the occasion that this is true, it is usually so blatant that I would characterize such disclosure as redundant.

Several of my posts contain political commentary but I think our posts should be about investing, not swaying voter opinion. I especially avoid one-sided rationalizations that appear to have a specific agenda -- although I readily admit that on occasion the dividing line may be very fine indeed.

I still have not made up my mind about the upcoming election because I find some merit in the positions of each candidate. But to me the real question on our site remains: where do you put your money in the case of either candidate's success?

Continue reading Serious Money: The business of politics and vice versa

Serious Money: The business of politics and vice versa originally appeared on BloggingStocks on Wed, 03 Sep 2008 15:15:00 EST. Please see our terms for use of feeds.

This is a continuation of Serious Money: Choose these 5 stocks over CDs -- DEO, GE, HNP, JPM, MRK, which listed the first five stock ideas. Below are the other picks rounding out the ten.

Nucor Corporation (NYSE: NUE) - This is one of the world leaders in the idea of mini-mills. This smallish steel producer prides itself on running a tight ship, pays a dividend and has a P/E under 9. The steel industry has been volatile in recent years with many mergers and acquisitions. NUE could be a takeover target as the industry continues to consolidate. In the mean time, at Friday's closing price of $51.6, it was paying a 4.05% yield and is near its 52 week low, having dropped from a high of $83.56.

Precision Drilling TR (NYSE: PDS) - This Canadian supplier of gas drilling equipment and manpower is probably the least well known of the companies in this group. It has dropped off its highs with the recent sag in gas prices and may well be a bargain again although not the bargain it was when I posted Chasing Value: Precision Drilling for 10% yield. At Friday's closing price of $21.35 it was paying a 7.1% yield and that is still a wonderful bounty even it the stock only appreciates a little.

Continue reading Serious Money: 5 more stocks better than CDs -- NUE, PDS, SO, WFC, XEL

Serious Money: 5 more stocks better than CDs -- NUE, PDS, SO, WFC, XEL originally appeared on BloggingStocks on Mon, 25 Aug 2008 12:48:00 EST. Please see our terms for use of feeds.

Precision Drilling (NYSE: PDS) announced the purchase of Grey Wolf (NYSE: GW) for $5.00 in cash and 0.1883 newly-issued Precision trust units for each GW share.

The transaction will establish PDS as one of the largest U.S. land drillers with a combined fleet of 371 drilling rigs.

PDS September option implied volatility of 46 is near its 26-week average of 43 according to Track Data, suggesting non-directional price movements.

GW overall option implied volatility of 45 is near its 26-week average, suggesting non-directional price movements.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Precision Drilling and Grey Wolf volatility flat into merger originally appeared on BloggingStocks on Mon, 25 Aug 2008 08:46:00 EST. Please see our terms for use of feeds.

The stock market is in turmoil today and the reasons can be found elsewhere (including in some peoples' imaginations). But if you are a bottom line investor, then here is where you should be looking. Food and energy exploration are the places to be.

Things can change rapidly, but as of right now food related stocks like Bunge Ltd. (NYSE: BG), the largest company involved with soy based products, and Potash Corp. of Saskatchewan (NYSE: POT), the largest fertilizer company, are up.

In the exploration sector, Anadarko Petroleum (NYSE: APC), the oil, gas and exploration company, Loews Corporation (NYSE: LTR), which is the majority shareholder in Diamond Offshore Drilling and is separating from its tobacco interests, and Precision Drilling TR (NYSE: PDS), the Canadian contract driller that is expanding into the lower 48 states, are all up.

All five stocks have out performed the market this year and that trend does not seem to be in jeopardy yet.

I will update this post with final results after the market close to see how the story ends.

UPDATE: four of the five closed in positive territory when all the major indices were in the red.

• APC finished down to $77.69, -0.54 (-0.69%)
• BG finished up to $122.40, +0.47 (+0.39%)
• LTR finished up to $48.95, +0.45 (+0.93%)
• PDS finished up to $26.95, +0.49 (+1.85%)
• POT finished up to $223.10 +2.54 (+1.15%)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of APC and PDS.

Serious Money: What's up today? Food & drillers! originally appeared on BloggingStocks on Wed, 11 Jun 2008 13:45:00 EST. Please see our terms for use of feeds.

Today was a very gloomy day in the stock market with Oil reaching new highs and everything else losing -- almost. Among the few winners, and I mean very few, Apple Inc. (NASDAQ: AAPL), oil, and specialty steel were up. I went through my watch list and found this very short list of winners:

Anadarko Petroleum (NYSE: APC) $78.49, up +$0.95 or 1.23%

Apple Inc (NASDAQ: AAPL) $185.90, up +$2.30 or 1.25%

Halliburton (NYSE: HAL) $49.92, +$0.85 up +$1.73%

Precision Drilling TR (NYSE: PDS) $27.90, up $1.13, or 4.22%

Reliance Steel and Aluminum (NYSE: RS) $67.37, +0.$52, or 0.78%

Valero Energy (NYSE: VLO) $50.12, up +$0.43 or 0.87%

Continue reading Apple, Oil, & Steel were rays of light on gloomy market day

Apple, Oil, & Steel were rays of light on gloomy market day originally appeared on BloggingStocks on Tue, 20 May 2008 20:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Wachovia upgraded Progressive (NYSE: PGR) to Market Perform from Underperform based on modest signs of improvement in underwriting trends.
  
• Lehman upgraded Netflix (NASDAQ: NFLX) to Overweight from Equal Weight based on strong core trends and a potential announcement of digital service partners into its May 28 investor day.
  
• Credit Suisse upgraded Public Service Enterprise Group (NYSE: PEG) to Outperform from Neutral based on earnings growth through utility investment, valuation, upside from U.S. CO2 policy.

• Precision Drilling (NYSE: PDS) was raised to Outperform from Sector Perform at RBC Capital.
  
• Hertz Global (NYSE: HTZ) was upgraded at Soleil to Buy from Hold.
  
• Calyon upgraded Foundation Coal (NYSE: FCL) and Arch Coal (ACI) to Add from Neutral.

Analyst upgrades: PGR, NFLX, PDS, HTZ, FCL and PEG originally appeared on BloggingStocks on Tue, 20 May 2008 11:30:00 EST. Please see our terms for use of feeds.

Do you have a good financial advisor? They are hard to come by, from my experience. If you are in business you probably get somebody fresh out of business school (if that) calling at least every other day. I am very cynical about the entire financial industry and think that much of what passes for good professional advice is neither good nor professional. I harped on this a little yesterday in Sunday Funnies: Analysts must have a great sense of humor.

If one were to measure many of our foremost fianancial institutions by how well they manage their own affairs, then most of them would come up wanting. The investment banks, ratings agencies, mortgage banks and even the federal watchdogs have made a poor showing over the past year and we are all paying for it.

Recently I made the acquaintance of a Michael G., who is a broker with a major financial institution that is advising a good friend of mine and seems to contradict my generally negative opinion of the industry. He was the seed that grew into my Precision Drilling Services TR (NYSE: PDS) recommendation and last month I was happy to post Chasing Value: PDS up 75% in Q1, announces distribution.

In my conversation with Mike, Seaspan Corp (NYSE: SSW) was his latest intrigue. According to AOL Money & Finance data, Seaspan maintains a fleet of about 30 vessels. Its charter operations are managed by sister company Seaspan Management Services Limited. Both companies are a part of The Washington Marine Group, a group of companies that focus on marine transportation and ship building.

Continue reading Serious Money: So, what about Seaspan Corp (SSW)?

Serious Money: So, what about Seaspan Corp (SSW)? originally appeared on BloggingStocks on Mon, 19 May 2008 12:05:00 EST. Please see our terms for use of feeds.

It was only a few weeks ago I was thinking, how much higher can this one go but sure enough, Precision Drilling Services TR (NYSE: PDS), the Canadian Trust went higher. In my last report, PDS announced its monthly dividend distribution. The current yield is 5.6% down from the 10% range it was paying when I first recommended it, but still a good return.

Today PDS closed at $28.04, a new 52-week high, now 81.24% above the $15.47 it was five months ago. During the trading day it touched on $28.12.

Last month Precision reported a 33% loss and still the share price is moving up. This supports all the reports that keep popping up regarding the price differential between natural gas and oil suggesting the the NG prices are going up and that drilling companies like PDS will be swamped. Although PDS has had a rough trailing 12 months, creating the buying opportunity, the stock price is clearly being lifted by anticipation of a bright future.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of PDS.

Chasing Value: Another day another PDS (+81%) new high originally appeared on BloggingStocks on Tue, 13 May 2008 18:03:00 EST. Please see our terms for use of feeds.

It should not come as a surprise to many that as crude oil pushed $120 per barrel and gas prices passed $4 a gallon at the pump Anadarko Petroleum (NYSE: APC) reached a new 52 week high of $71.12 and finished Tuesday at $70.07. The stock is up over 75% (not including the dividend) since I recommended it last year.

At the time I disclosed that I acquired the stock at $40 and suggested this was a keeper. I like the fact that the company has a substantial amount of its proven oil and natural gas reserves in North America. It also pays a modest dividend 0.52% while sporting a P/E under 9 (TTM). When last I posted on the subject -- Serious Money: great picks: Aluminum Co. of China & Anadarko -- about ten weeks ago, APC was trading at $55, down from its previous high, though still returning a nice gain. That was the time to buy on the dip if you were watching it.

Continue reading Chasing Value: Anadarko (APC) up 75% -- hits new 52-week high

Chasing Value: Anadarko (APC) up 75% -- hits new 52-week high originally appeared on BloggingStocks on Wed, 23 Apr 2008 10:58:00 EST. Please see our terms for use of feeds.

Last Friday, April 18, Precision Drilling Services TR (NYSE: PDS), the Canadian Trust, announced that the Board of Trustees has approved a cash distribution for the month of April 2008 of $0.13 per trust unit of Precision. The distribution will be payable on May 15, 2008 to unit holders of record on April 30, 2008.

The current dividend yield of 5.8% remains very generous and far above most other stocks in the sector. After some of my high dividend stock recommendations either under performed or simply cut their distribution, it is reassuring to see that PDS not only is maintaining its dividend, but in this particular case continues to pay out monthly, allowing for better compounding of the yield.

The stock closed today at $27.15, up 75.5% from $15.47 when I recommended the stock three months ago. If you got into the stock back then you would still be receiving over a 10% yield. Last year I had several high flyers but not all of them stayed up so I am watching Precision closely for signs of weakness or changes in the business.

Continue reading Chasing Value: PDS up 75% in Q1, announces distribution

Chasing Value: PDS up 75% in Q1, announces distribution originally appeared on BloggingStocks on Mon, 21 Apr 2008 17:01:00 EST. Please see our terms for use of feeds.

It has been a difficult year to find stocks that have done well in the market. To find a stock that has had staggering returns has been even rarer. I know because I've had a few disasters like Bear Stearns (NYSE: BSC), which will soon be folded up into JP Morgan Chase (NYSE: JPM), and is only one among many financial nightmares.

A while back I reported in Chasing Value: Precision Drilling up 46% since December that one of my picks was having an amazing year. The first quarter is behind us and the dream continues. Precision Drilling Services TR (NYSE: PDS), continues to rise while it is drilling down, increasing from $15.47 when I originally reviewed it to last night's close at $24.75.

This 60% jump is on top of the 10% dividend yield, which by itself is quite satisfactory. From the many people that follow my rants and raves, I sometimes get suggestions or questions that lead me in a certain direction. I have to share credit with a good friend of mine, Joe G., for shining a light on Precision Drilling. He was right that it was worth a look and of course I shared my findings with everyone when I recommended the stock three months ago.

Continue reading Chasing Value: Precision Drilling up 60% - something's working

Chasing Value: Precision Drilling up 60% - something's working originally appeared on BloggingStocks on Tue, 15 Apr 2008 15:05:00 EST. Please see our terms for use of feeds.

The Dow Jones Industrial Average is down about 150 points as I peck away on my laptop. I was looking to see what stocks were holding up on a down day, and sure enough one of my favorites showed up -- Precision Drilling Services TR (NYSE: PDS), a stock I recommended two months ago.

I apologize if I seem like a cheerleader, or a play-by-play announcer, but it was only two weeks ago that I posted on what were already strong gains, and this one keeps going up (even though its business is to drill down...). From my original December recommendation at $15.47 per share, PDS has moved up to $22.61 by midday today and climbing, for a 46% gain. This is when the Dow industrials are down almost 7%.

Continue reading Chasing Value: Precision Drilling up 46% since December

Chasing Value: Precision Drilling up 46% since December originally appeared on BloggingStocks on Thu, 28 Feb 2008 14:27:00 EST. Please see our terms for use of feeds.

It's foolish to get too excited about short term success unless you are a rapid fire trader. However, the first six weeks of 2008 have been dismal, so any success is a sigh of relief. I enjoy writing for BloggingStocks, in part because of the dialogue it allows, making it a good sounding board for things I am considering in my investment world.

'Mr. Noital' is one who keeps me sharp and he recently reminded me about Precision Drilling Services TR (NYSE: PDS), a stock I recommended two months ago, so he must like it too and perhaps bought a few shares.

In December, Canada's largest drilling contractor with a fleet of 240 service rigs was $15.47 per share, but last Friday it closed at $19.12, for a nice bounce of 24%. This when the market is down over 8% and almost nothing is looking very promising. When I first called PDS to readers' attention, it had a price to earnings ratio (P/E) near 5 and a dividend yield over 10%. The stock's appreciation has raised the P/E to 6.26 and the yield declined to 7.9% -- still very generous.

I have no crystal ball so predictions are hard to come by, but a closer look at PDS is worth while and you might like what you see. Of course comments are welcome.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm. Disclosure: I do own shares of PDS.

Chasing Value: Precision Drilling up 24% originally appeared on BloggingStocks on Mon, 11 Feb 2008 13:43:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Gordon Pape, editor of The Internet Wealth Builder, chose Brookfield Asset Management (NYSE: BAM) as his favorite stock for 2007, which rose 31% as of 6/1/07. Here is his original recommendation and his current opinion on Brookfield.

For his new favorite, the advisor looks to Precision Drilling (NYSE: PDS). He explains, "If you like to buy good companies at beaten-down prices, take a good look at this income trust.

"Precision Drilling, which provides services to the Canadian oil patch, has been battered and bruised by a decline in oil exploration activity, distribution cuts, and, of course, the proposed new tax on income trusts which is now working its way through the Parliament of Canada.

"Investors were hit with a second distribution cut in six months when the trust announced on May 18 that it is chopping another 32% off its monthly payment, slicing it to 13 cents. That reduces the annual payment to $1.56 a share, less than half last year's level of $3.24.

"There's no doubt this oilfields service provider is going through a tough period and management hasn't tried to sugar-coat the situation. Despite the gloomy outlook, RBC Capital Markets said in a research report that the firm's dividend cut probably represents the last one for the year.

"The trust's payout ratio should now be marginally below that of other oil service providers and it is generally expected that drilling activity will pick up later this year.

Continue reading Top 20 advisors: Gordon Pape picks Precision

Top 20 advisors: Gordon Pape picks Precision originally appeared on BloggingStocks on Thu, 21 Jun 2007 10:00:00 EST. Please see our terms for use of feeds.

• Morgan Joseph started Acorda Therapeutics Inc (NASDAQ: ACOR) with a Sell rating and $15 target citing seizure rates for Fampridine-SR and limited efficacy for its rating.

• Coach, Inc (NYSE: COH) was started at Soleil with a Buy rating and $58 target; the firm believes continuing market share gains should create a long-term EPS growth rate of 23%.

• Morgan Stanley initiated Time Warner Cable (OTC: TWCA) with an Equal Weight rating.

• Raymond James started Legacy Reserves LP (NASDAQ: LGCY) with an Outperform rating and $27 target.

• Wedbush initiated Avaya Inc (NYSE: AV) with a Hold rating and $14 target.

• Nollenberger initiated Rudolph Technologies Inc (NASDAQ: RTEC) with a Buy rating and $26 target, citing valuation.

• Precision Drilling Trust (NYSE: PDS) was initiated at CIBC with a Sector Performer rating.

• Lehman Brothers started Polo Ralph Lauren Corp (NYSE: RL) with an Overweight rating and $100 target.

• Bank of America reinstated The Nasdaq Stock Market Inc (NASDAQ: NDAQ) with a Neutral rating and $33 target.

Analyst initiations 2-21-07: Coach & Avaya initiated today originally appeared on BloggingStocks on Wed, 21 Feb 2007 11:32:00 EST. Please see our terms for use of feeds.

Each year, Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Precision Drilling (NYSE: PDS) is the favorite speculative stock for 2007 from utility specialist Roger Conrad. The editor of The Utility Forecaster notes, "Precision converted to a Canadian income trust last year and its shares were immediately off to the races, riding enthusiasm about its big dividend and growth of activity in North American drilling.

"The second half of 2006 has been 180 degrees different, due to a slump in energy patch activity in Canada and the government's proposal to tax income trusts beginning in 2011. As a result, the stock is yielding 13%, a level usually reserved for Wall Street basket cases.

"Precision, however, is far from it, holding more than 40% of the fast-growing deep drilling market in Canada and rapidly expanding on both sides of the border. Cash flow continues to cover the dividend by a generous margin, and with energy patch activity picking up in North America at the end of 2006, it should do so by an even wider margin in 2007.

"Being taxed again as a corporation would almost surely mean a lower dividend. But in the meantime, the trust will continue to pay out big, and the shares should benefit from faster energy patch activity.

"Also, the income trust tax changes are priced in, so there's no real additional risk on that front, and a possibility the ultimate change by the government will be considerably more favorable. A further slowdown in energy patch activity is also priced in to the shares, so all the potential surprises are positive and will bring upside. Buy Precision up to 30."

To see Roger's favorite conservative stock for 2007, click here.

Top Picks 2007: Roger Conrad drills into Precision originally appeared on BloggingStocks on Sun, 24 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.