Cabot Oil & Gas (COG) released disappointing quarterly results recently. The underperformance by the oil and gas company has resulted in a drop in the company's shares in the last three months. But this underperformance by the company on the back of different concerns can be a bright buying opportunity that is expected to generate strong free cash flow in the future.
The Problem
Cabot saw weakness in its business and posted weak results, disappointing many analysts. Low operational efficiencies resulted in a sluggish performance that also led to increasing concerns around its Marcellus differential, which has been wider than expected year to date.
Despite a poor performance Cabot is in a good position to fight back. It is still on track to produce 100% internal rate of return on its assets. This indicates that the company has a well-aligned management and operational strategies. Cabot is well aware of the areas where it has to improve. It is already focusing on working with new strategies for the future. Initially, Cabot is expecting weakness in the Marcellus differential, but expects an uptick in demand going forward.
10 Best Computer Hardware Stocks For 2015: Kronos Worldwide Inc (KRO)
Kronos Worldwide, Inc. engages in the production and marketing of titanium dioxide pigments (TiO2) primarily in Europe and North America. It produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for products, such as coatings, paints, plastics, papers fibers, and ceramics, as well as for various specialty products, including inks, food, and cosmetics. The company also offers ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are co-products and processed co-products of the TiO2 production process and used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; and titanium oxychloride and titanyl sulfate that are side-stream products from the production of TiO2. Its titanium oxychloride is used in the formulation of pearlescent pigments, production of electroceramic capacitors for cell phones, and other electronic devices; and titanyl sulfate is used in pearlescent pigments, natural gas pipe, and other specialty applications. In addition, the company provides technical services. Kronos Worldwide, Inc. sells its products through distributors and agents to paint, plastics, decorative laminate, and paper manufacturers under the Kronos brand name. The company was founded in 1989 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.
Advisors' Opinion:- [By Ben Levisohn]
Typically, when the chairman of a company dies, its shares drop. That hasn’t been the case for Valhi (VHI), Kronos Worldwide (KRO) and NL Industries (NL), which have all advanced today after Harold Simmons passed away.
- [By Laura Brodbeck]
Notable earnings releases expected on Thursday include:
Dollar General Corporation (NYSE: DG) is expected to report fourth quarter EPS of $1.02 on revenue of $4.63 billion, compared to last year�� EPS of $0.97 on revenue of $4.21 billion. Kronos Worldwide Inc (NYSE: KRO) is expected to report fourth quarter EPS of $0.01 on revenue of $371.45 million, compared to last year�� loss of $0.12 per share on revenue of $396.80 million. Christopher & Banks Corporation�(NYSE: CBK) is expected to report a fourth quarter loss of $0.03 on revenue of $106.64 million, compared to last year�� loss of $0.11 on revenue of $115.98 million.Economics
- [By GuruFocus]
Kronos Worldwide Inc. (KRO): Vice Chairman of the Board and CEO Steven L. Watson Bought 14,250 Shares
Vice Chairman of the Board and CEO of Kronos Worldwide Inc. (KRO) Steven L. Watson bought 14,250 shares during the past week at an average price of $14.81. Kronos Worldwide Inc. is a Delaware Corporation. The company is a global producer and marketer of value-added titanium dioxide pigments (TiO2). Kronos Worldwide Inc. has a market cap of $1.72 billion; its shares were traded at around $14.81 with a P/E ratio of 42.60 and P/S ratio of 0.95. The dividend yield of Kronos Worldwide Inc. stocks is 4.05%. Kronos WorldwideInc. had an annual average earnings growth of 5.4% over the past 10 years.
- [By John Udovich]
Dallas billionaire Harold Simmons died over the weekend with investors sending shares of some of his publically traded companies like Valhi, Inc (NYSE: VHI), Kronos Worldwide, Inc (NYSE: KRO), NL Industries, Inc (NYSE: NL) and�CompX International Inc (NYSEMKT: CIX)to higher levels as they anticipate changes���such as asset sales or spin offs. Harold Simmons was the embodiment of the American dream because he was born during the depths of the Great Depression in Golden, Texas to schoolteacher parents and he spent�his early years living without indoor plumbing or electricity. However and by recognizing�underpriced assets and through the use of massive amounts of leverage (e.g. junk bonds),�he built an empire and�ranked #40 on the 2013 Forbes 400 with a fortune estimated to be worth some $10 billion.
Top 5 Healthcare Technology Companies To Own In Right Now: Coinstar Inc.(CSTR)
Coinstar, Inc., through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, Ireland, and the United Kingdom. The company owns and operates self-service Redbox kiosks that enable consumers to rent or purchase movies and video games; and self-service coin-counting kiosks where consumers can convert their coin to cash, a gift card, or an E-certificate. It also engages in identifying, evaluating, building, and developing new self-service concepts in the automated retail space, which includes coffee, refurbished electronics, and photo self-service concepts. As of December 31, 2011, the company had 35,400 Redbox kiosks in 29,300 locations and 20,200 coin-counting kiosks in 19,900 locations primarily in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. Coinstar, Inc. was founded in 1991 and is headquartered in Bellevue, Washington.
Advisors' Opinion:- [By Canadian Value]
Position % of Fund Assets 1) First American Financial Corp. (FAF) 7.0% 2) Apple, Inc. (AAPL) 6.5% 3) Coinstar, Inc. (CSTR) 4.8% 4) EMC Corp. (EMC) 4.4% 5) Coach, Inc. (COH) 4.4% 6) Kohl's Corp. (KSS) 4.1% 7) Blucora, Inc. (BCOR) 4.0% 8) Tetra Tech, Inc. (TTEK) 3.1% 9) OM Group, Inc. (OMG) 3.0% 10) American International Group, Inc. (AIG) 2.8% TOTAL 44.1% One area that we believe still offers some value in the market is in high quality, large��ap technology stocks that may be momentarily out��f��avor as they transition from rapid growth to slower growth. In particular, we become interested when that transition is also accompanied by a change in capital allocation policies designed to return more cash to shareholders in the form of dividends and share repurchases. We believe that Apple and EMC are two of the absolute highest quality technology businesses in the world and both have recently announced very material, shareholder��friendly changes to how they will allocate capital.
Top 5 Healthcare Technology Companies To Own In Right Now: Emak SpA (EM)
Emak SpA is an Italy-based company primarily engaged in the manufacture of outdoor power equipment for gardening, forestry, agriculture and industry. The Company�� portfolio includes chainsaws, brush cutters, lawnmowers, garden tractors, water pumps, high pressure washers, transporters, rotary cultivators, motor hoes and power cutters, among others. It also manufactures spare parts, accessories and protective clothing. The Company sells its products under various brand names, such as Oleo-Mac, Efco, Bertolini, Nibbi and Staub. Emak SpA directly manages distribution in the Italian market and it sells products, through its commercial subsidiaries, in France, Germany, the United Kingdom, Spain, the countries of Benelux, Poland, Ukraine, among others.The Company is controlled by Yama SpA, which is an industrial holding company. Advisors' Opinion:- [By Holly LaFon]
As true value investors, Brandes oft en moves against the crowd amid markets' constantly changing performance cycles. Take the recent equity market weakness in a number of emerging market (EM) countries for example. Over the last year, while macroeconomic and geopolitical concerns cast a cloud of uncertainty over the asset class in general, we started to see some interesting investment opportunities at the company level as a result of such market weakness.
- [By Canadian Value]
For 20+ years there has been a coherent growth story around Emerging Markets (EM), where the label "Emerging Market" had real meaning within a common knowledge perspective. Today ��not so much. Today the story is that it was easy money from the Fed that drove global growth, EM or otherwise. Today the story is that Emerging Markets are just the levered beneficiaries or victims of Fed monetary policy, no different than anyone else��
- [By Federico Zaldua]
Brookfield Infrastructure has a number of potentially profitable areas for investment around the world but, above all, in infrastructure hungry Emerging Markets (EM) such as Brazil. According to Credit Suisse analysts, in Brazil, funds can be invested at Funds From Operations (FFO) yields above 12%. Therefore, the company's ability to grow its distribution yield, whether through acquisitions or organically, is critical to evaluate the company's value. Moreover, the currently conservative dividend payout ratio should allow Brookfield Infrastructure to self-finance on going opportunities.
Top 5 Healthcare Technology Companies To Own In Right Now: The NASDAQ OMX Group Inc.(NDAQ)
The NASDAQ OMX Group, Inc. provides trading, clearing, exchange technology, securities listing, and public company services worldwide. It offers trading across various asset classes, including cash equities, derivatives, debt, commodities, structured products, and exchange traded funds; capital formation solutions; financial services and exchanges technology; market data products; and financial indexes, as well as clearing, settlement, and depository services. The company also provides broker services comprising technology and customized securities administration solutions, such as back-office systems to financial participants. In addition, it offers global listing services; technology solutions for trading, clearing, settlement, and information dissemination; and facility management integration, surveillance solutions, and advisory services, as well as develops and licenses NASDAQ OMX branded indexes, associated derivatives, and financial products. As of December 31, 2010 , a total of 2,778 companies listed securities on The NASDAQ Stock Market. The NASDAQ OMX Group supports the operations of approximately 70 exchanges, clearing organizations, and central securities depositories. The company was formerly known as The Nasdaq Stock Market, Inc. and changed its name to The NASDAQ OMX Group, Inc. in February 2008. The NASDAQ OMX Group, Inc. was founded in 1971 and is based in New York, New York.
Advisors' Opinion:- [By DailyFinance Staff]
Scott Eells/Bloomberg via Getty Images Stocks ended Friday trading higher, despite a report showing a big drop in sales of newly built homes, which prompted a selloff earlier in the session. The Dow Jones industrial average (^DJI) rose 46 points, or 0.3 percent, to 15,010, building on Thursday's gains. The Standard & Poor's 500 index (^GPSC) added six points, or 0.4 percent, to 1,663. and the Nasdaq composite index (^IXIC) gained 19 points, or 0.5 percent, to 3,657, a day after the exchange was shutdown for three hours because of technical troubles. Data from the Commerce Department showed sales of new single-family homes in the U.S. fell by 13.4 percent in July to an annual rate of 394,000 units, well below expectations of 490,000 units. The data weighed on homebuilder stocks, with PulteGroup (PHM) down 1.6 percent to $16.06, Toll Brothers (TOL) off 3.9 percent to $31.19 and D.R. Horton (DHI) off 2.9 to $18.73. After a technological problem shut down trading in Nasdaq securities Thursday, Nasdaq OMX Group (NDAQ) Chief Executive Officer Robert Greifeld said the exchange resolved the technical issues that led to Thursday's trading halt but can't guarantee there would be no future problems. Time Warner Cable (TWC) is offering free antennas to allow customers to watch CBS (CBS) during a blackout that's in its third week. The companies have been unable to reach a new programming deal since their agreement expired in June. Customers in New York, Los Angeles and Dallas can get a free indoor antenna at their local Time Warner Cable store, or receive a $20 voucher, good for the purchase of an antenna at Best Buy (BBY).
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