Halliburton (HAL), Schlumberger (SLB) and Baker Hughes (BHI). Three oil services firms with three very different responses to news today.
BloombergFirst up, Halliburton. It reported a profit of 93 cents a share, above forecasts for 89 cents, yet Halliburton’s shares have dropped 1.8% to $49.76. Citigroup’s Robin Shoemaker and Mark Brown explain why:
…the stock is trading lower today largely because the company cited several negative factors that are impacting its Latin America operations in 2014…
The major challenge comes from Brazil, where offshore drilling activity fell in 2013 and is expected to decline further in 2014. Halliburton won a large multi-year drilling services contract from�Petrobras (PBR) before offshore activity began to slow. After putting in place the people and infrastructure to execute the contract, [Halliburton] has been very disappointed with the volume of drilling services work that Petrobras� has needed under the terms of the contract…
10 Best Defense Stocks To Watch For 2015: Thompson Creek Metals Company Inc.(TC)
Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top losers in the sector included Cliffs Natural Resources (NYSE: CLF), down 4 percent, and Thompson Creek Metals Company (NYSE: TC), off 3 percent.
Top Oil Service Companies To Invest In Right Now: Alterra Capital Holdings Ltd(ALTE)
Alterra Capital Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products to corporations, public entities, and property and casualty insurers in North America, Europe, and internationally. It offers professional liability products, which include errors and omissions insurance, employment practices liability insurance, and directors and officers insurance; excess liability products, such as excess umbrella liability insurance, excess product liability insurance, excess medical malpractice insurance, and excess product recall insurance; and property insurance, as well as provides airline, general aviation, and aerospace insurance. The company also offers reinsurance products consisting of agriculture, auto, aviation, credit/surety, general casualty, marine and energy, medical malpractice, professional liability, property, whole account, and workers? compensation reinsurance. In addition, it offers general liability, inland mari ne, and ocean marine insurance; accident and health insurance and reinsurance, financial institutions insurance, and surety reinsurance; and employers? and public liability insurance, and medical malpractice insurance, as well as life and annuity reinsurance. The company was formerly known as Max Capital Group Ltd. and changed its name to Alterra Capital Holdings Limited in May 2010. Alterra Capital Holdings Limited was founded in 1999 and is headquartered in Hamilton, Bermuda.
Advisors' Opinion:- [By Steve Symington]
About that whale...
If that weren't enough, Markel also announced this morning it has officially completed its $3 billion acquisition of Alterra (NASDAQ: ALTE ) , which, as I noted back in February, was a radical departure from Markel's typically smaller buyout targets. While it will undoubtedly take some time to fully integrate Alterra's operations, management expressed excitement for Alterra's ability to help Markel expand its global footprint in the insurance and reinsurance market.
Top Oil Service Companies To Invest In Right Now: Whirlpool Corporation(WHR)
Whirlpool Corporation engages in the manufacture and marketing of home appliances worldwide. Its principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. The company also produces hermetic compressors for refrigeration systems. It markets and distributes its products under various brand names, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator, Inglis, Acros, Supermatic, Consul, Brastemp, Eslab� de Lujo, Bauknecht, Ignis, Laden, Polar, and Privileg in North and Latin America, Europe, the Middle East, Africa, and Asia. Whirlpool Corporation sells its products to retailers, dealers, distributors, builders, and other manufacturers. The company was founded in 1898 and is headquartered in Benton Harbor, Michigan.
Advisors' Opinion:- [By Marc Bastow]
Home appliance manufacturer and distributor Whirlpool (WHR) raised its quarterly dividend 20% to 75 cents per share.
Payout Date: June 15
Ex-Dividend Date: May 14
WHR Dividend Yield: 1.95%
Top Oil Service Companies To Invest In Right Now: PartnerRe Ltd (PRE)
PartnerRe Ltd. (PartnerRe), incorporated in August 24, 1993, is the ultimate holding company for its international reinsurance group. The Company provides reinsurance on a global basis through its wholly owned subsidiaries, including Partner Reinsurance Company Ltd. (PartnerRe Bermuda), Partner Reinsurance Europe plc (PartnerRe Europe) and Partner Reinsurance Company of the U.S. (PartnerRe U.S.). Its risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines and mortality, longevity and health. The Company also offers alternative risk products, which include weather and credit protection to financial, industrial and service companies on a global basis. In January 2013, the Company acquired Presidio Reinsurance Group, a United States-based specialty accident and health reinsurance and insurance writer. In March 2013, the Company announced the formation of Lorenz Re Ltd.
The Company provides reinsurance for its clients in approximately 150 countries globally. Through its branches and subsidiaries, the Company provides reinsurance of non-life and life risks to ceding companies (primary insurers, cedants or reinsureds) on either a proportional or non-proportional basis through treaties or facultative reinsurance. The Company operates in three segments: Non-life, Life and Corporate and Other. Its Corporate and Other segment is consisted of the capital markets and investment related activities of the Company, including principal finance transactions, insurance-linked securities and strategic investments, and its corporate activities, including other operating expenses.
Non-life Segment
The Non-life segment is divided into four sub-segments, North America, Global (Non-the United States) Property and Casualty (Global (Non-the United States) P&C), Global (Non-the United States) Specialty and Catastrophe. The North America sub-seg! ment includes agriculture, casualty, motor, multiline, property, surety and other risks generally originating in the United States. The Global (Non-the United States) P&C sub-segment includes casualty, motor and property business generally originating outside of the United States. The Global (Non-the United States) Specialty sub-segment business include agriculture, aviation/space, credit/surety, energy, engineering, marine, specialty casualty, specialty property and other lines. The Catastrophe sub-segment is consisted of the Company�� catastrophe line of business. The Company reinsures, primarily on a proportional basis, agricultural yield and price/revenue risks related to flood, drought, hail and disease related to crops, livestock and aquaculture. The Company provides specialized reinsurance protection for airline, general aviation and space insurance business on a proportional basis and through facultative arrangements.
The Company�� space business relates to coverages for satellite assembly, launch and operation for commercial space programs. Its casualty business includes third party liability, employers��liability, workers��compensation and personal accident coverages written on both a proportional and non-proportional basis, including structured reinsurance of casualty risks. The Company provides property catastrophe reinsurance protection, written on a non-proportional basis, against the accumulation of losses caused by windstorm, earthquake, tornado, tropical cyclone, flood or by any other natural hazard, which is covered under a property policy. Credit reinsurance, written on a proportional basis, provides coverage to commercial credit insurers, and the surety line relates to bonds and other forms of security written by specialized surety insurers. The Company provides reinsurance coverage for the onshore oil and gas industry, mining, power generation and pharmaceutical operations on a proportional basis and through facultative arrangements.
The Company p! rovides r! einsurance for engineering projects globally, predominantly on a proportional treaty basis and through facultative arrangements. The Company provides reinsurance protection and technical services relating to marine hull, cargo, transit and offshore oil and gas operations on a proportional or non-proportional basis. The Company�� motor business includes reinsurance coverages for third party liability and property damage risks arising from both passenger and commercial fleet automobile coverages written by cedants. This business is written predominantly on a proportional basis.
The Company�� multiline business provides both property and casualty reinsurance coverages written on both a proportional and non-proportional basis. Property business provides reinsurance coverage to insurers for property damage or business interruption losses resulting from fires, catastrophes and other perils covered in industrial, commercial property and homeowners��policies, and are written on both a proportional and non-proportional basis. The Company�� predominant exposure under these property coverage is to property damage. The Company�� property reinsurance treaties exclude certain risks, such as war, nuclear, biological and chemical contamination, radiation and environmental pollution.
The Company provides specialized reinsurance protection for non-the United States casualty business. This reinsurance protection is offered on a proportional, non-proportional or facultative basis. The Company provides specialized reinsurance protection for non-the United States property business. This reinsurance protection is offered on a proportional, non-proportional or facultative basis. The Company�� Non-life business is produced both through brokers and through direct relationships with insurance companies. In North America, business is written through brokers, while globally, the business is written on both a direct and broker basis.
Life Segment
The Company�� Life ! segment i! ncludes the mortality, longevity and health lines of business written primarily in the United Kingdom, Ireland and France. The Company provides reinsurance coverage to life insurers and pension funds to against individual and group mortality and disability risks. Mortality business is written on a proportional basis through treaty agreements. Mortality business is subdivided into death and disability covers (with various riders) written in Continental Europe, term assurance and critical illness (TCI) written in the United Kingdom and Ireland, and guaranteed minimum death benefit (GMDB) written in Continental Europe. The Company also writes certain treaties on a non-proportional basis in France.
The Company provides reinsurance coverage to employer sponsored pension schemes and life insurers who issue annuity contracts offering long-term retirement benefits to consumers, who seek protection against outliving their financial resources. The Company�� longevity portfolio is subdivided into standard and non-standard annuities. The non-standard annuities are annuities sold to consumers with aggravated health conditions and are underwritten on an individual basis. The Company provides reinsurance coverage to life insurers with respect to individual and group health risks. The Company�� Life business is produced both through brokers and through direct relationships with insurance companies. During the year ended December 31, 2011, one cedant accounted for 13% of the Life segment�� total gross premiums written and one broker, the Aon Group (including the Benfield Group), accounted for 16% of the Life segment�� total gross premiums written.
The Company competes with Munich Re, Swiss Re, Everest Re, Hannover Re, SCOR, Transatlantic, Arch Capital, Axis Capital and XL Group.
Advisors' Opinion:- [By Marc Bastow]
International insurance holding company PartnerRe Ltd. (PRE) raised its quarterly dividend 5% to 67 cents per share, payable on Feb. 28 to shareholders of record as of Feb. 18.
PRE Dividend Yield: 2.72%
Top Oil Service Companies To Invest In Right Now: Cloud Peak Energy Inc(CLD)
Cloud Peak Energy Inc., through its subsidiaries, engages in coal mining operations in the Powder River Basin of the United States. It produces sub-bituminous steam coal with low sulfur content for electric utilities and industrial customers. The company owns and operates Antelope surface coal mine located to the south of Gillette, Wyoming; the Cordero Rojo surface coal mine located to the south of Gillette, Wyoming; and the Spring Creek surface coal mine located in Montana. It also owns a 50% interest in the Decker surface coal mine located in Montana. As of December 31, 2010, it had approximately 970 million tons of proven and probable reserves. The company was founded in 1993 and is headquartered in Gillette, Wyoming.
Advisors' Opinion:- [By Ben Levisohn]
During the past three months, Consol Energy (CNX) has gained 11%, Peabody Energy (BTU) has risen 3.4% and Cloud Peak Energy (CLD) has dropped just 0.8%. (Arch Coal (ACI), it should be noted, has plunged 11% during that time period.) Is this the start of a good thing?
Top Oil Service Companies To Invest In Right Now: ICL Israel Chemicals Ltd (ISCHY.PK)
ICL Israel Chemicals Ltd (ICL) is an Israel-based company, engaged in the fertilizer and specialty chemical sectors. The company operates in three segments: Fertilizers, Industrial Products, and Performance Products. The Fertilizers segment is engaged in the production of standard, granular, fine red and white potash from three sources, as well as in the production of phosphates, such as phosphate rock, phosphoric acid, fertilizers and animal feed addictives. The Industrial Products segment produces flame retardants, such as brominates and organ phosphorus; elemental bromine, and other chemicals. In addition the Performance Products segment produces specialty phosphates, such as technical, food grade and electronic grade phosphoric acid, phosphate salts, food additives and wildfire safety products, as well as alumina and other chemicals. Advisors' Opinion:- [By Chris Damas]
I never thought Uralkali would get back together with Belaruskali as I expressed in this article written a day after the break-up roiled the fertilizer world, causing 20% plunges in the stocks of major producers such as Potash Corp (POT), Mosaic Company (MOS) and Israel Chemicals Ltd (ISCHY.PK).
Top Oil Service Companies To Invest In Right Now: First Trust Ise Global Engineering And Construction Index Fund (FLM)
First Trust ISE Global Engineering and Construction Index Fund (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the ISE Global Engineering and Construction Index (the Index). The Fund is a series of the First Trust Exchange-Traded Fund II, an investment company and an exchange-traded index fund. The Index is developed and owned by the International Securities Exchange, LLC (ISE or Index Provider), in consultation with Standard & Poor's, a Division of The McGraw-Hill Companies, Inc., which calculates and maintains the Index. The Index specifically targets companies that are engaged in civil and capital projects, such as infrastructure, utilities, transportation, telecommunications, commercial, residential and commerce facilities, and whose roles are within the engineering, designing, planning, consulting, project managing and/or constructing of these projects. First Trust Advisors L.P. is the investment adviser for the Fund. Advisors' Opinion:- [By John Udovich]
Mid cap infrastructure construction stock Chicago Bridge & Iron Company N.V. (NYSE: CBI) fell 7.23% after being trashed in an article by an apparent�short seller posted on Seeking Alpha, meaning its worth taking a closer look at the stock along with the performance of potential benchmarks like Jacobs Engineering Group Inc (NYSE: JEC), KBR, Inc (NYSE: KBR) and First Trust ISE Global Engineering and Construction Index Fund ETF (NYSEARCA: FLM).
- [By John Udovich]
Small cap building materials stock NCI Building Systems Inc (NYSE: NCS) fell yesterday after announcing a share offering plus its investors have (so-far) missed out on any ��ecovery��in construction���meaning it might be time to take a closer look at the stock along with potential performance benchmarks like the PowerShares Dynamic Building & Construction ETF (NYSEARCA: PKB) and the First Trust ISE Global Engineering and Construction Index Fund ETF (NYSEARCA: FLM)���both of which have had decent returns in recent years.
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