With shares of Cisco Systems (NASDAQ:CSCO) trading around $20, is CSCO an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
Cisco Systems designs, manufactures, and sells Internet protocol-based networking and other products related to communications, and provides services associated with these products and their use to information technology industries worldwide. The company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate, and collaborate. Cisco operates in five segments: United States and Canada, European markets, emerging markets, Asia Pacific, and Japan.
Cisco Systems has cut its long-term forecast for both earnings and revenue amid a myriad of problems. The announcement was made at an analyst meeting on Thursday, Reuters reports. Cisco executives cut the company�� revenue growth prospects in the next three to five years from 5 to 7 percent to between 3 and 6 percent. The company said it expects its core network equipment business to stay flat during that time frame. Cisco hopes that increases in software, services, and security products will offset the drop in network equipment.
San Juan Basin Royalty Trust (the Trust) is an express trust created by the San Juan Basin Royalty Trust Indenture, between Southland Royalty Company (Southland Royalty) and The Fort Worth National Bank. The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty (Royalty Income), to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Royalty conveyed to the Trust was carved out of Burlington Resources Oil & Gas Company LP�� (Burlington) working interests and royalty interests in certain properties situated in the San Juan Basin in northwestern New Mexico.
Burlington is the principal operator of the Underlying Properties. A percentage of the Royalty Income is attributable to the production and sale by Burlington of natural gas from the Underlying Properties. The Underlying Properties are primarily gas producing properties. The Underlying Properties consist of working interests, royalty interests, overriding royalty interests and other contractual rights in 151,900 gross (119,000 net) producing acres in San Juan, Rio Arriba and Sandoval Counties of northwestern New Mexico and 4,015 gross (1,158.5 net) wells. Gas produced in the San Juan Basin is sold in both interstate and intrastate commerce. Gas production from the properties totaled 32,580,756 million cubic feet (Mcf), during the year ended December 31, 2012. Gas produced from the Underlying Properties is processed at one of the five plants: Chaco, Val Verde, Milagro, Ignacio, and Kutz, all located in the San Juan Basin. Gas produced from the Underlying Properties and processed at Kutz is being sold under three separate contracts with Pacific Gas and Electric Company (PG&E), Shell Energy North America (US), LP (Shell) and New Mexico Gas Company, Inc. (NMGC).
Advisors' Opinion: - [By Aaron Levitt]
San Juan Basin Royalty Trust (SJT): Rising natural gas prices have been a boon to SJT as the royalty trust owns natural gas wells located in New Mexico. Units of trust are up around 30% this year on the back of these higher prices. Also up are SJT�� distributions. The royalty trust paid out 4 cents per share per month last year. This May, SJT paid 10 cents- a nice 150% gain in dividends. SJT currently yields over 6% based on the last 12 months of monthly dividend payments.
- [By Rich Duprey]
San Juan Basin Royalty Trust (NYSE: SJT ) announced yesterday its July monthly distribution of $0.080643�per unit, based principally upon production during the month of April.
Best Information Technology Stocks To Invest In 2014: Southern Cross Exploration NL (SXX)
Southern Cross Exploration NL is an Australia-based company engaged in the investment in the Bigrlyi Uranium Joint Venture, on which pre-development investigations and further drilling were carried out; exploration for gold and minerals, reviews of opportunities for participation in and/or acquisition of mineral exploration and mining ventures, and examination of projects in respect of different commodities, share investments, loans and other securities. The Bigrlyi project is located in the Ngalia Basin, northwest of Alice Springs, in the Northern Territory. The Company's interest in the Bigrlyi Uranium Joint Venture is one of its assets, in joint venture with two multi-billion dollar companies, CGNPC - via the Operator, Energy Metals Ltd (EME) - and Paladin Energy Ltd (PDN).
Advisors' Opinion: - [By idahansen]
Due to the impact of The Great Recession, stocks in the agricultural sector such as Caterpillar (NYSE: CAT), The Mosiac Company (NYSE: MOS), and Potash of Saskatchewan (NYSE: POT) are trading well below highs. The exchange traded fund for the industry, DBA Power Shares, (NYSE: DBA), is down more than 17% for the last year. Despite this bearish trend, legendary investors such as Warren Buffett, George Soros, and Jim Rogers are very positive for the agriculture group. With the long term bullish outlook for the sector from the greatest investors in history, small cap stocks active in the fertilizer sector such as Sirius Minerals (LSE: SXX) and Americas Petrogas (TSX: BOE) are especially attractive.
Best Information Technology Stocks To Invest In 2014: Etablissementen Fr Colruyt NV (COLR)
Etablissementen Fr Colruyt NV, also known as Colruyt Group, is a Belgian company primarily engaged in retail and wholesale of food products. The Company's retail trade division includes the direct supply of products to retail customers operating through brands Colruyt, DreamBaby, BIO-planet, DreamLand and ColliShop, among others. The Company supplies to wholesalers and affiliated independent merchants in Belgium, France and Luxembourg. It also provides printing solutions (photo Fuji Colruyt). Colruyt Group also has a corporate activities division, which combines support services, processes and systems and central administration, among others.
Advisors' Opinion: - [By Tom Stoukas]
Colruyt SA (COLR) fell 4 percent to 42.31 euros. Belgium�� largest discount food retailer forecast full-year net income of about 369 million euros ($498 million) compared with analysts�� estimates of 381.2 million euros.
- [By Corinne Gretler]
Colruyt (COLR) gained 8.3 percent to 40.08 euros, the largest jump since June 27, 2012. Belgium�� biggest discount food retailer said full-year earnings before interest, taxes, depreciation and amortization amounted to 699.8 million euros ($910 million), beating the average 684 million-euro analyst projection in a Bloomberg survey. The company also raised its dividend to 1 euro a share, exceeding the Bloomberg Dividend Forecast of 98 cents.
Best Information Technology Stocks To Invest In 2014: Telus Corporation(TU)
TELUS Corporation provides telecommunications products and services primarily in Canada. Its telecommunications products and services include wireless, data, Internet protocol (IP), voice, and television. The company operates through two segments, Wireless and Wireline. The Wireless segment provides digital personal communications, equipment sales, and wireless Internet services. The Wireline segment offers voice local and voice long distance services; data services, which include television, and managed and legacy data services, as well as Internet, enhanced data, and hosting services; and other telecommunications services. TELUS Corporation was founded in 1993 and is based in Burnaby, Canada.
Advisors' Opinion: - [By Rich Duprey]
Continuing with its practice of raising its dividend payment every year, Canadian telecom�Telus� (NYSE: TU ) �announced today�its second-quarter dividend of $0.34 Canadian per share. Last quarter�the payout was $0.32 Canadian per share. That's a 6.25% increase.
- [By Anders Bylund]
Last week, Canadian cable company TELUS (NYSE: TU ) CEO Darren Entwistle said that Netflix might be as much of an opportunity as a competitor. The company could sell rebranded Netflix services under its own banner to get a leg up on its mostly larger head-to-head competitors. Pairing with local cable providers is a strategy that Netflix hasn't considered (at least not publicly), but it's a wrinkle that's worth keeping a watchful eye on.
- [By Ben Levisohn]
Abbvie (ABBV)
Ameren Corp. (AEE)
Arthur J. Gallagher (AJG)
E.I. DuPont de Nemours & Co. (DD)
ENSCO (ESV)
Enterprise Products Partners LP (EPD)
General Mills (GIS)
H&R Block (HRB)
Hancock Holding (HBHC)
Kraft Foods Group (KRFT)
Lorillard (LO)
Magellan Midstream Partners LP (MMP)
MarkWest Energy Partners L P (MWE)
McDonald’s (MCD)
Microchip Technology (MCHP)
NextEra Energy (NEE)
Regency Centers (REG)
TELUS Corp. (TU)
West Corp. (WSTC)
Williams Companies (WMB)
Best Information Technology Stocks To Invest In 2014: Omnicell Inc.(OMCL)
Omnicell Inc. provides automated solutions for hospital medication and supply management primarily in the United States and Canada. The company offers medication use products, which include OmniRx that automates the management and dispensing of medications at the point of use; SinglePointe, a software product that controls medications on a patient-specific basis; AnywhereRN, a software that allows nurses to remotely operate automated dispensing cabinets; Pandora Analytics, a reporting and data analytics tool; and Savvy Mobile Medication System, a mobile platform for hospital information systems. Its medication use products also include OmniLinkRx, a software product that automates communication between nurses and the pharmacy; WorkflowRx, an automated storage, retrieval, inventory management, and repackaging solution; controlled substance barcode inventory management system; and Anesthesia Workstation, a secure dispensing system for the management of anesthesia supplies an d medications. In addition, the company provides medical and surgical supply products, which comprise Omnicell Supply Solution that automates the management and dispensing of medical and surgical supplies at the point of use; Supply/Rx Combination Solution, which manages medications and supplies in one versatile cabinet; Omnicell Tissue Center that manages the chain of custody for bone and tissue specimens; OptiFlex SS, which supplies modules for the perioperative areas; OptiFlex CL that supplies modules for the cardiac catheterization lab and other procedure areas; and OptiFlex MS, a system for the management of medical and surgical supplies. Further, it provides customer education and training, and maintenance and support services. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was founded in 1992 and is headquartered in Mountain View, California.
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 Omnicell (Nasdaq: OMCL ) , whose recent revenue and earnings are plotted below.
- [By Leo Fasciocco]
Omnicell (OMCL) is organized into two operating business segments: Acute Care, which primarily includes sold to hospitals, and non-acute care, for customers outside of hospitals.
- [By Seth Jayson]
Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Omnicell (Nasdaq: OMCL ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Omnicell doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 33.5%, and inventory increased 53.7%. Comparing the latest quarter to the prior-year quarter, the story looks potentially problematic. Revenue expanded 35.8%, and inventory increased 53.7%. Over the sequential quarterly period, the trend looks OK but not great. Revenue dropped 3.4%, and inventory dropped 2.9%.
Best Information Technology Stocks To Invest In 2014: UBS AG (UBS)
UBS AG, incorporated on February 28, 1978, is a client-focused financial services company that offers a combination of wealth management, asset management and investment banking services on a global and regional basis. UBS AG is the parent company of the UBS Group (Group).The operational structure of the Company consists of the Corporate Center and four business divisions: Wealth Management & Swiss Bank, Wealth Management Americas, Global Asset Management and the Investment Bank. As of December 31, 2011, the Company operated about 877 business and banking locations worldwide, of which about 42% were in Switzerland, 42% in the Americas, 11% in the rest of Europe, Middle East and Africa, and 5% in Asia-Pacific. During the year ended December 31, 2011, it completed acquisitions in Global Asset Management and in the equities business of the Investment Bank. In November 2011, investment management responsibility for a private equity fund of funds was transferred to Global Asset Management from Wealth Management & Swiss Bank. In October 2011, Global Asset Management acquired ING Investment Management Limited business in Australia. In July 2011, the infrastructure and private equity fund of funds businesses were transferred from its alternative and quantitative investment area to its infrastructure investment area. In January 2011, investment management responsibility for a multi-manager alternative fund was transferred to Global Asset Management from Wealth Management & Swiss Bank.
Wealth Management
Wealth Management provides wealthy private clients with financial advice, products and tools to fit their individual needs. As of December 31, 2011, Wealth Management had presence in over 40 countries and approximately 200 wealth management and representative offices, half of which are outside Switzerland, mostly in Europe, Asia Pacific, Latin America and the Middle East. During 2011, the Company had CHF 750 billion of invested assets. The Company offers products and services to private! clients, focusing in particular on the ultra-high-net-worth (clients with investable assets of more than CHF 50 million) and high-net-worth client segments (clients with investable assets between CHF 2 million and CHF 50 million). In addition, it also provides wealth management solutions, products and services to financial intermediaries. Wealth Management has a presence in over 40 countries and approximately 200 wealth management and representative offices, half of which are outside Switzerland, mostly in Europe, Asia Pacific, Latin America and the Middle East.
The Company�� Global Financial Intermediaries (Global FIM) business serves approximately 1,700 asset managers. It provides its clients with the financial advice, products and tools. The Company�� clients can trade a range of financial instruments from single securities, such as equities and bonds, to various investment funds, structured products and alternative investments. Additionally, it offers structured lending, corporate finance and wealth planning advice on client needs, such as funding for education, inheritance and succession. For its ultra high net worth clients, it offers institutional-like servicing that provides access to its Investment Bank and Global Asset Management offerings. Wealth Management also gives clients access to the knowledge, and product and service offerings from Global Asset Management and the Investment Bank, complemented by an open product platform providing access to an array of products from third-party providers.
The Company competes with Credit Suisse, Julius Bar, HSBC, Deutsche Bank, JP Morgan, Citigroup, Barclays and Unicredit.
Retail & Corporate
The Company delivers financial products and services to its retail, corporate and institutional clients. The Retail & Corporate unit is a core element of UBS Switzerland�� universal bank delivery model. As of December 31, 2011, the Company had a network of around 300 branches, 1,250 automated teller machines! , self-se! rvice terminals and customer service centers, alongside e-banking and mobile banking. The Company�� retail clients have access to offering, including cash accounts, payments, savings and retirement solutions, investment fund products, residential mortgages, as well as life insurance and advisory services. It provides financing solutions to its corporate clients, offering access to capital markets (equity and debt capital), syndicated and structured credit, private placements, leasing and traditional financing. The Company�� transaction banking offers solutions for payments and cash management services, trade and export finance, receivable finance, as well as global custody solutions to institutional clients.
The Company competes with Credit Suisse, Raiffeisen and PostFinance.
Wealth Management Americas
Wealth Management Americas provides advice-based relationships through its financial advisors, who deliver a range of wealth management solutions. On December 31, 2011, the business division had CHF 709 billion in invested assets. Wealth Management Americas consisted of branch networks in the United States, Puerto Rico and Canada, with 6,967 financial advisors as of 31 December 2011. Most corporate and operational functions of the business division are located in the home office in Weehawken, New Jersey. In the United States and Puerto Rico, Wealth Management Americas operates through direct and indirect subsidiaries of UBS AG. Securities and operations activities are conducted primarily through two broker-dealers, UBS Financial Services Inc. and UBS Financial Services Incorporated of Puerto Rico. Its banking services in the United States include those conducted through the UBS AG branches and UBS Bank USA, a federally regulated Utah bank, which provides Federal Deposit Insurance Corporation (FDIC) insured deposit accounts. It includes the domestic US business, the domestic Canadian business and international business booked in the United States.
Ca! nadian we! alth management and banking operations are conducted through UBS Bank (Canada). The Company�� include wealth accumulation and preservation, income generation and portfolio diversification. The Company�� advisors work closely with internal consultants in areas, such as wealth planning, portfolio strategy, retirement and annuities, alternative investments, managed structured products, banking and lending, equities, and fixed income accounts, structured products, banking and lending, equities, and fixed income retirement and annuities, alternative investments, managed accounts, structured products, banking and lending, equities, and fixed income. It also offers lending and cash management services, such as securities-backed lending, the resource management account, FDIC-insured deposits, mortgages and credit cards. For corporate and institutional clients, it offers a range of solutions, including equity compensation, administration, investment consulting, defined benefit and contribution programs and cash management services. It offers a range of equity and fixed income instruments.
The Company competes with Bank of America, Morgan Stanley and Wells Fargo.
Global Asset Management
The Company serves third-party institutional and wholesale clients and the clients of UBS�� wealth management businesses. The Company�� fund services unit, a global fund administration business, provides professional services, including legal fund set-up, accounting and reporting. Invested assets totaled CHF 574 billion and assets under administration were CHF 375 billion on December 31, 2011. Global Asset Management serves third-party institutional and wholesale clients, and the clients of UBS�� wealth management businesses. Global Asset Management�� business lines include traditional investments (equities, fixed income and global investment solutions); alternative and quantitative investments; global real estate; infrastructure and private equity, and fund services.
Global ! investment solutions offer asset allocation, currency, multi-manager, structured solutions, risk advisory and strategic investment advisory services. Alternative and quantitative investments has two primary business lines-Alternative Investment Solutions (AIS) and O��onnor. AIS offers a range of hedge fund solutions and advisory services, including multi-manager strategies. O��onnor is a provider of single-manager global hedge funds. Global real estate manages real estate investments globally and regionally within Asia, Europe, Switzerland and the United States. Infrastructure and private equity manages direct infrastructure investment and multi-manager infrastructure and private equity strategies for both institutional and high net worth investors. Infrastructure asset management manages direct investments in core infrastructure assets worldwide. Fund services, the global fund administration business, provides professional services, including legal set-up, reporting and accounting for retail and institutional investment funds, hedge funds and other alternative products.
The Company competes with Fidelity Investments, AllianceBernstein Investments, BlackRock, JP Morgan Asset Management and Goldman Sachs Asset Management.
Investment Bank
The Investment Bank provides a range of products and services in equities, fixed income, foreign exchange and commodities to corporate and institutional clients, sovereign and government bodies, financial intermediaries, alternative asset managers and UBS�� wealth management clients. The Investment Bank has three business areas: equities, fixed income, currencies and commodities (FICC), and the investment banking department. The Company operates through branches and subsidiaries of UBS AG. Securities activities in the United States are conducted through UBS Securities LLC, a broker-dealer. Securities research provides investment analysis across a range of asset classes of more than 3,400 companies worldwide.
The ! Company p! articipates in the primary and secondary markets for cash equity and equity-related products, including listed options, structured products, equity-linked securities, swaps, futures and over-the-counter (OTC) derivative contracts. Cash equities provide clients with liquidity, investment advisory, trade execution and related consultancy services. It offers trade execution for single stocks and portfolios, including capital commitment, block trading, small-cap execution and commission management services. In addition, it also provides clients with a range of electronic trading algorithms and analytical tools. Derivatives and equity-linked provides a range of flow, structured, synthetic and equity-linked products with worldwide access to primary and secondary markets.
Prime services offer brokerage business, including clearing and custody, capital consultancy, financing, securities lending and equity swaps execution. The FICC business area delivers products and solutions to corporate, institutional and public-sector clients in all markets, as well as to private clients via targeted intermediaries. Macro consists of the foreign exchange, money market and interest rate sales and trading businesses, as well as cash and collateral trading. It provides a range of foreign exchange, precious metals, treasury, and liquidity management solutions to institutional and private clients via targeted intermediaries. Credit sales and trading consists of the origination, underwriting, trading and distribution of cash and synthetic products across the credit spectrum - bonds, derivatives, notes and loans.
The investment banking department provides advice and a range of capital markets execution services to corporate clients, financial institutions, financial sponsors, sovereign clients and hedge funds. The Company also provides liquidity in local markets across foreign exchange, credit, rates and structured products. The advisory group assists in acquisitions and sale processes, and also advises on! reviews ! and corporate restructuring solutions. Global capital markets is a joint venture with the securities business. It offers financing and advisory services that cover all forms of capital raising, as well as risk management solutions. Global leveraged finance provides event-driven (acquisition, leveraged buyout) loans, and bond and mezzanine leveraged finance to corporate clients and financial sponsors.
The Company competes with Bank of America/Merrill Lynch, Barclays Capital, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase and Morgan Stanley.
Advisors' Opinion: - [By Bryan Perry]
Keep in mind that it’s a leveraged business development exchange-traded note, not an exchange-traded fund that holds all the underlying stocks of those publicly traded BDCs. Rather, it is a debt note secured by the United Bank of Switzerland (UBS), and is tied to the Wells Fargo Business Development Company Index (WFBDC) the only index to be made up completely of BDCs. This index is based off of 32 BDC holdings, which the BDCL ETN leverages by 2X.
- [By WALLSTCHEATSHEET]
UBS, a financial services firm, provides wealth management, asset management, and investment banking products and services worldwide. The company might not reach its profit goals in 2015 since Swiss authorities demanded that they set aside more funds for litigation. The stock has been in a range over the last five years, however, it’s currently near highs for the year. Over the last four quarters, earnings have been decreasing while revenues have been increasing, which has produced mixed feelings among investors. Relative to its peers and sector, USB has been a relative performance leader year-to-date. Look for UBS to OUTPERFORM.