|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.
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Jan. 19, 2017 12:30 PM EST Reads: 1,168
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Jan. 19, 2017 12:15 PM EST Reads: 1,986
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 19, 2017 12:15 PM EST Reads: 4,291
The unique combination of Amazon Web Services and Cloud Raxak, a Gartner Cool Vendor in IT Automation, provides a seamless and cost-effective way of securely moving on-premise IT workloads to Amazon Web Services. Any enterprise can now leverage the cloud, manage risk, and maintain continuous security compliance. Forrester's analysis shows that enterprises need automated security to lower security risk and decrease IT operational costs. Through the seamless integration into Amazon Web Services, ...
Jan. 19, 2017 12:00 PM EST Reads: 1,877
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Jan. 19, 2017 11:45 AM EST Reads: 1,691
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Jan. 19, 2017 11:30 AM EST Reads: 3,904
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 19, 2017 11:30 AM EST Reads: 4,303
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 19, 2017 11:15 AM EST Reads: 11,397
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Jan. 19, 2017 10:15 AM EST Reads: 571
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Jan. 19, 2017 10:15 AM EST Reads: 4,318
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jan. 19, 2017 10:15 AM EST Reads: 4,877
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions with...
Jan. 19, 2017 10:00 AM EST Reads: 5,550
"What is the next step in the evolution of IoT systems? The answer is data, information, which is a radical shift from assets, from things to input for decision making," stated Michael Minkevich, VP of Technology Services at Luxoft, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 19, 2017 10:00 AM EST Reads: 5,546
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Jan. 19, 2017 09:30 AM EST Reads: 6,015
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Jan. 19, 2017 08:30 AM EST Reads: 5,183