CSX (NYSE: CSX ) will release its quarterly report next Tuesday, and investors have already prepared for a slight reduction in the company's net income from a year ago. But even as the railroad industry has had to deal with the big drop in domestic demand for commodities like coal and iron ore, it has found ways to replace lost revenue and hold its own against unfavorable trends, and that's a big part of why CSX earnings have held up as well as they have.
CSX in particular faces the challenge of being concentrated in the eastern part of the U.S., which has historically relied more on coal shipments and which doesn't have the access to West Coast export capacity that some of its competitors have. Yet the company has managed to overcome that challenge with the help of some innovative strategies. Let's take an early look at what's been happening with CSX over the past quarter and what we're likely to see in its quarterly report.
Stats on CSX
Analyst EPS Estimate
10 Best Net Payout Yield Stocks To Buy Right Now: West Pharmaceutical Services Inc.(WST)
West Pharmaceutical Services, Inc. manufactures and sells components and systems for injectable drug delivery and plastic packaging, and delivery system components for the pharmaceutical, healthcare, and consumer products industries. The company?s Packaging Systems segment provides packaging components and systems used in injectable drug delivery. This segment offers elastomeric stoppers and discs, elastomeric plungers, needle shields, tip caps, aluminum seals and removable plastic buttons, elastomeric components, flashback bulbs and sleeve stoppers, elastomer and co-molded elastomer/plastic components, non-filled syringe components, and dropper bulbs, as well as pharmaceutical containers, closures, and dispensers. This segment also provides laboratory and other services comprising extractables and leachables testing, package/container testing, method development/validation, stability testing, process development, and problem resolution. Its Delivery Systems segment offer s healthcare devices, such as ready-to-use prefilled syringe systems and sterile vials. This segment also offers sterile devices and electronic patch injector systems; passive safety needle systems, disposable auto-injector systems, and safety systems for prefilled syringes; and contract manufacturing services for personal care and consumer products, including infant nurser assemblies, closures for beverage containers, and child-resistant and tamper-evident closures and dispensers. In addition, this segment engages in contract manufacturing and assembling injection molded components and devices for surgical, ophthalmic, diagnostic, and drug delivery systems. The company distributes its products through its sales force and distribution network, as well as through contract sales agents and regional distributors in the United States, Germany, France, and other European countries. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Lionville, Pennsylva nia.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 West Pharmaceutical Services (NYSE: WST ) , whose recent revenue and earnings are plotted below.
Top 10 Railroad Stocks To Own For 2014: DRDGOLD Ltd (DRD)
DRDGOLD Limited (DRDGOLD), incorporated on February 16, 1895, is a South Africa-based surface gold retreatment company. DRDGOLD operates in a single segment, Ergo. Ergo is a surface retreatment operation and treats old slime and sand dumps to the south of Johannesburg�� central business district, as well as the east and central Rand goldfields. The operation consists of four plants: Brakpan, Crown, City and Knights. Included in the Ergo segment is the East Rand Proprietary Mines Limited (ERPM) surface operation comprise the Cason retreatment operation. Ergo is evaluating the viability of processing surface uranium- and sulphur-bearing tailings on the east and central Rand goldfields of South Africa. The Company�� business includes Crown Gold Recoveries (Pty) Limited (Crown), Ergo Mining (Pty) Limited (Ergo JV) and ErgoGold are jointly referred to as ERGO and ERPM. On June 1, 2012, the Company disposed of its 74% interest in and loan claims against Blyvoor.
The Company�� focus is on the recovery of lower-risk, lower-cost, higher-margin ounces. As of October 9, 2012, 68% of production comes from surface retreatment operation. The company holds a 74%-interest in operating subsidiary Ergo Mining Operations (Proprietary) Limited. Crown is the gold surface tailings retreatment facility, reprocessing the large and numerous sand and slimes dumps along the reefs that stretch from east to west just to the south of Johannesburg�� central business district (CBD). Crown�� major project is Top Star, a tailings dam to the south of Johannesburg�� CBD. ERPM is situated on the Witwatersrand Basin near the town of Boksburg, 25 kilometers to the east of Johannesburg. The Ergo as a joint venture between DRDGOLD and Mintails Limited. Wholly owned by the DRDGOLD group, Ergo has a network of surface rights that provide access to a further 600 million tons of surface tailings deposited across the western, central and eastern Witwatesrand. Ergo has three tailings deposition facilities. ERPM continues ! as a surface retreatment operation. It holds 65% of ErgoGold through the contribution of its Elsburg Tailings Complex.Advisors' Opinion:
- [By Luke Jacobi]
Moving opposite of technology, basic materials shares rose 0.19 percent in trading on Friday. Top gainers in the sector included DRDGOLD (NYSE: DRD), up seven percent, and LyondellBasell Industries NV (NYSE: LYB), up 4.3 percent.
- [By Monica Gerson]
DRDGOLD (NYSE: DRD) shares fell 4.09% to reach a new 52-week low of $4.66. DRDGOLD's trailing-twelve-month profit margin is -1.61%.
InnerWorkings (NASDAQ: INWK) shares dipped 34.83% to touch a new 52-week low of $6.19 after the company reported downbeat Q3 results and issued a weak FY13 outlook.
Top 10 Railroad Stocks To Own For 2014: TIBCO Software Inc.(TIBX)
TIBCO Software Inc. provides middleware and infrastructure software worldwide. It offers products in the areas of service-oriented architecture (SOA) and core infrastructure; business optimization; and process automation and collaboration. Its SOA and core infrastructure product line helps organizations integrate their disparate systems and move towards flexible infrastructure comprised of services or discrete data components that can be assembled, orchestrated, and reused; and enables the creation, management, and virtualization of heterogeneous services. The company?s business optimization product portfolio assists organizations analyze data to create information and deliver it to employees, customers, and partners; and employees perform their jobs, and customers get information, as well as helps managers identify and analyze problems and opportunities. Its process automation and collaboration software helps organizations coordinate manual and automated process flows th at span their business and enables employees to collaborate in real-time using social media; and coordinate the human and electronic resources inside a business and its network of customers and partners. The company also provides professional services, which include consulting services that comprise systems planning and design, installation, and systems integration; maintenance and support; training; and hosted services. It serves various industries, such as financial services, telecommunications, government, energy, life sciences, insurance, logistics, manufacturing, retail, and transportation. The company sells its products through direct sales force, as well as through software vendors, resellers, and systems integrators. TIBCO Software Inc. was founded in 1985 and is headquartered in Palo Alto, California.Advisors' Opinion:
- [By Selena Maranjian]
The biggest new holdings are Virgin Media�and Tiffany. Other new holdings of interest include TIBCO Software (NASDAQ: TIBX ) , a Big Data operator that posted mixed results recently as it invests in a more cloud-computing-oriented future. It's been adding recurring-revenue contracts and some speculate that it may end up acquired by another.
- [By Dan Caplinger]
TIBCO Software (NASDAQ: TIBX ) will release its quarterly report on Thursday, and investors have looked increasingly uncertain about whether the enterprise infrastructure and IT integration software maker can continue to produce solid share-price gains. Even though the company has managed to fend off much larger rivals IBM (NYSE: IBM ) and Oracle (NYSE: ORCL ) thus far, TIBCO has a long way to go before it can ultimately declare victory over them and the rest of its competition.
Top 10 Railroad Stocks To Own For 2014: China Precision Steel Inc.(CPSL)
China Precision Steel, Inc. engages in the manufacture and sale of high precision cold-rolled steel products primarily in the People?s Republic of China. Its products include high strength and ultra-thin cold-rolled precision steel coils and sheets with reduced thickness ranging from 7.5 mm to 0.03 mm comprising low carbon steel used in steel roofing, food packaging, dry batteries, electronic devices, and kitchen tools; and high carbon steel for automobile parts and components, grinding pieces, saw blades, and weaving needles, as well as for use in microelectronics. The company also provides steel processing for tailor made cold rolled steel products; and heat treatment, and cutting and slitting of medium and high-carbon hot-rolled steel strips not exceeding 7.5 mm thickness. It sells its products to components manufactures and directly to the end-users in China; and exports to Indonesia, Thailand, the Caribbean, Nigeria, and Ethiopia. China Precision Steel, Inc. is headq uartered in Sheung Wan, Hong Kong.Advisors' Opinion:
- [By Luke Jacobi]
These reports have put several other steel companies in play.Steel Dynamics (NASDAQ: STLD) shares are up 0.44 percent Commercial Metals (NYSE: CMC) shares are up 0.34 percent ArcelorMittal (NYSE: MT) shares are up 1.77 percent China Precision Steel (OTC: CPSL) shares were up 2.7 percent
Posted-In: Earnings Commodities Markets Trading Ideas
Top 10 Railroad Stocks To Own For 2014: China Fund Inc (CHN)
The China Fund, Inc. (the Fund), incorporated on April 28, 1992, is a non-diversified, closed-end management investment company. The Fund�� investment objective is to achieve long-term capital appreciation through investment in companies and other entities with significant assets, investments, production activities, trading or other business interests in the People�� Republic of China, or which derive a significant part of their revenue from the People�� Republic of China.
The China Fund, Inc. may invest in equity-linked securities, such as linked participation notes, equity swaps and zero-strike options, and securities warrants collectively referred to as Access Products. The Fund invests various sectors, including industrials, consumer discretionary, energy, information technology, financials, consumer staples, materials, utilities, healthcare and telecommunications. Martin Currie Inc. serves as the investment manager for the Fund's listed assets. Asian Direct Capital Management is the investment manager for the Fund's assets allocated to direct investments.Advisors' Opinion:
- [By Stephen Leeb, Founder and Research Chairman, Leeb Group]
Healthy economic data, coupled with low inflation, make Chinese stocks attractive as well. Our first choice here is the China Fund (CHN). It holds a diverse portfolio of stocks primarily focused on the Chinese domestic market.
Top 10 Railroad Stocks To Own For 2014: WisdomTree SmallCap Earnings Fund (EES)WisdomTree SmallCap Earnings Fund (the Fund) seeks investment results that correspond to the price and yield performance of the WisdomTree SmallCap Earnings Index (the Index). The Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the small-capitalization segment of the United States stock market. The Index consists of the companies in the bottom 25% of the market capitalization of the WisdomTree Earnings Index after the 500 largest companies have been removed. Companies must be incorporated and listed in the United States, and must have generated positive cumulative earnings over their most recent four fiscal quarters prior to the Index measurement date. The Index is earnings-weighted in December to reflect the proportionate share of the aggregate earnings each component company has generated. Companies with greater earnings generally have larger weights in the Index. Its investment advisor is WisdomTree Asset Management, Inc. Advisors' Opinion:
- [By Philip Springer]
WisdomTree SmallCap Earnings Fund (EES) follows earnings generated by companies in the small-cap universe of the US stock market.
Furthermore, the fund looks to weight by earnings, giving bigger weights to firms that earn more, irrespective of market capitalization.
Top 10 Railroad Stocks To Own For 2014: The Providence Service Corporation(PRSC)
The Providence Service Corporation provides and manages government sponsored social services and non-emergency transportation services. It offers home and community based counseling, foster care and therapeutic foster care, and provider management services. The company?s home and community based counseling services include home based and intensive home based counseling, substance abuse treatment, school support services, correctional services, and workforce development. Its not-for-profit managed services comprise administrative support, information technology, and accounting and payroll services; intake, assessment, and referral services; monitoring services; and case management. The company also provides non-emergency transportation management services to state Medicaid programs, local government agencies, hospital systems, and health maintenance organizations, as well as to individuals with limited mobility, people with limited means of transportation, people with disa bilities, and Medicaid members; and school transportation services to special needs students who are physically fragile, or mentally ill children. The Providence Service Corporation offers its services in the United States and the District of Columbia; and British Columbia, Canada. The company was founded in 1996 and is based in Tucson, Arizona.Advisors' Opinion:
- [By Lisa Levin]
Providence Service (NASDAQ: PRSC) shares rose 6.58% to $40.50. The volume of Providence Service shares traded was 1483% higher than normal. On Tuesday, Providence Service agreed to acquire Ingeus for $58 million.