|By PR Newswire||
|June 14, 2013 09:30 AM EDT||
CHICAGO, June 14, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Safeway Inc. (NYSE:SWY-Free Report), The Boeing Company (NYSE:BA-Free Report), Textron Inc. (NYSE:TXT-Free Report), Lockheed Martin Corp. (NYSE:LMT-Free Report) and Huntington Ingalls Industries Inc. (NYSE:HII-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Safeway to Sell Canadian Ops for $5.68B
Finally, Safeway Inc. (NYSE:SWY-Free Report) has reached a conclusive decision with respect to its Canadian operations. Share price of this food and drug retailer climbed 29.68% (or $6.86) higher during the after-trading hours following the company's announcement of an agreement to sell its Canadian operations. The stock was also up 24.45% (or $5.64) before the opening bell on Thursday.
Safeway inked a definitive agreement to divest its business operations in Canada – Canada Safeway Limited to Canadian food retailer Sobeys Inc. for $5.68 billion in cash (roughly $3.91 billion after taxes and expenses), plus the assumption of certain liabilities. Empire Company Limited owns the Sobeys supermarket chain.
Safeway is still liable for roughly $294 million of Canada Safeway's public debt due Mar 2014. It will also retain cash and other receivables of a similar amount.
Safeway's net asset sale to Sobeys include its 213 full grocery stores in Western Canada, 199 in-store pharmacies, 62 co-located fuel stations, 10 liquor stores, 4 primary distribution centers and the related wholesale business and 12 manufacturing facilities in Canada.
The transaction is expected to close in the fourth quarter of 2013, subject to standard closing conditions. The company will report Canada Safeway as discontinued operations from the second quarter of 2013.
Safeway plans to use the net proceeds to repay $2 billion of its debt. Until the most recent quarter, the company continued to operate with a high debt level of $5.3 billion. As reported earlier, the first-quarter debt level was higher than the debt of $5.2 billion in the sequentially prior quarter. Safeway's highly leveraged balance sheet was a cause of concern for investors.
According to the company, the bulk of the remainder will be used for share repurchases. As reported earlier, Safeway did not repurchase any shares in the last three quarters. Presently, the company is left with $0.8 billion of authorization to buy back shares. Shareholders should look forward to attractive returns in the form of share buybacks in the near future.
Going forward, Safeway's share buyback activity along with lower interest expense, owing to reduced debt level, should further leverage earnings in the upcoming quarters.
Although the company asserts that the divestment reflects a deft plan to sharpen focus on the U.S. market, we remain apprehensive due to the lack of clarity on management plans to gain momentum in the domestic market.
Notably, Safeway's Canadian operations have been more profitable than the U.S. operations, as seen in the level of operating profit over the past few years. In 2012, the company recorded operating profit of approximately 2% and 5.4% in the U.S. and Canada, respectively.
Boeing, TXT Get V-22 Osprey Order
The Boeing Company (NYSE:BA-Free Report) and Bell Helicopter, a unit of Textron Inc. (NYSE:TXT-Free Report), have received a five-year modification contract worth $4.9 billion for the manufacture of 99 V-22 Osprey tiltrotor aircraft.
Specifically, Bell-Boeing Joint Project Office will produce 92 MV-22 Osprey aircraft for the U.S. Marine Corps, and seven carrier-variant CV-22s for the U.S. Navy. The contract work is expected to be completed by Sep 2019.
Taking into account the $1.4 billion preliminary contract that the joint venture received in Dec 2012, the value of the contract comes to $6.3 billion. In Dec 2012, the joint venture had received a contract to produce 21 V-22 Osprey.
Boeing, in collaboration with Bell Helicopter, has built the V-22 aircraft. The V-22 Osprey is a joint service multi-role combat aircraft that can fly as fast as a plane and land like a helicopter. The aircraft has the capacity to carry 24 combat troops, or up to 20,000 pounds of internal cargo or 15,000 pounds of external cargo.
Diversified network of both the companies negates any specific business risk. Going forward, Textron's diversified presence across commercial, manufacturing and industrial products, as well as financing operations and strong demand for Boeing's defense products would keep them well-positioned.
However, the adverse effects of sequestration cannot be ignored. In fact, in April, the budget cuts from sequestration have reduced the number of contracts awarded by the Department of Defense to major defense contractors. Defense contractors, including Boeing, have not been spared from the negative impacts of sequestration.
Even Lockheed Martin Corp. (NYSE:LMT-Free Report) and Huntington Ingalls Industries Inc. (NYSE:HII-Free Report) are part of this $37 billion sequestration cut made due to the automatic spending reduction that took effect from Mar 1, 2013. In Feb 2013, the government had announced $1.2 trillion in automatic cuts by 2021. In accordance to sequestration, funding for V-22s has experienced an $18 million reduction.
Boeing presently retains a Zacks Rank #3 (Hold) while Textron carries a Zacks Rank #4 (Sell).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 27, 2015 11:00 PM EST Reads: 414
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Nov. 27, 2015 06:00 PM EST Reads: 413
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 27, 2015 04:00 PM EST Reads: 174
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 27, 2015 02:00 PM EST Reads: 411
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Nov. 27, 2015 01:00 PM EST Reads: 172
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 27, 2015 01:00 PM EST Reads: 155
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Nov. 27, 2015 12:00 PM EST Reads: 464
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 27, 2015 12:00 PM EST Reads: 542
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
Nov. 27, 2015 11:45 AM EST Reads: 538
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 27, 2015 11:00 AM EST Reads: 315
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
Nov. 27, 2015 10:45 AM EST Reads: 384
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Nov. 27, 2015 10:45 AM EST Reads: 399
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Nov. 27, 2015 10:00 AM EST Reads: 309
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 27, 2015 10:00 AM EST Reads: 491
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Nov. 27, 2015 09:45 AM EST Reads: 221