Dividend Increases for the Week Ending May 31
May 31, 2013
Below we provide a list of firms that upped their dividends for the week ending May 31. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here. Firms Raising Their Dividends This Week American Eagle Outfitters (AEO): now $0.125 per share quarterly dividend, was $0.11. Canadian Imperial Bank of Commerce (CM): now C$0.96 per share quarterly dividend, was $0.94. CryoLife (CRY): now $0.0275 per share quarterly dividend, was $0.025. Daktronics (DAKT): now $0.12 per share semi-annual dividend, was $0.115. Eastern Insurance Holdings (EIHI): now $0.11 per share quarterly dividend, was $0.09. Hill-Rom Holdings (HRC): now $0.1375 per share quarterly dividend, was $0.125. Lowe’s Companies (LOW): now
Astronics Acquires Peco to Get Closer to Boeing
May 30, 2013
Best Ideas Newsletter holding Astronics acquired Peco for $136 million.
Two Huge Deals as M&A Accelerates
May 30, 2013
Smithfield sells itself and Valeant makes another splash in M&A.
Tiffany Leaps A Low Hurdle
May 29, 2013
Aspirational retailer Tiffany (click ticker for report: ) announced better-than-expected results for the first quarter of fiscal year 2014 fiscal year Tuesday morning. Global sales increased 9% year-over-year (13% ex-currency) to $895 million, exceeding consensus estimates. Earnings per share were also better than anticipated after Tiffany tempered first quarter expectations, as earnings were 10% higher year-over-year at $0.70 per share on a non-GAAP basis. While the firm didn’t give out free cash flow during the quarter, it did give full-year free cash flow guidance of $300 million. The company’s previous fears of margin deterioration did come true, as gross margins declined 110 basis points year-over-year to 56.2%. Management cited product mix as the major driver behind the weakness as consumers
Mortgage REITs Feeling the Pain
May 29, 2013
We published our extensive bear thesis on the mortgage REIT industry Monday–‘The Mortgage REIT Business Doesn’t Work…‘–, and when the markets opened for trading Tuesday, the entire mREIT group came under intense selling pressure, with American Capital Agency (AGNC) leading the charge lower. Key moves: American Capital Agency (-4.73%), Annaly (NLY -3.47%), Two Harbors (TWO -2.87%), Anworth (ANH -2.08%), Western Asset (WMC -3.75%), Apollo Residential (AMTG -5.43%), Invesco (IVR -4.22%), MFA Financial (MFA -2.2%). The 10-year Treasury added another 14 basis points today (2.15%), while the 30-year Treasury added 13 basis points (3.31%)–source. The primary driver behind our negative thesis on the mortgage REITs rests on the continuation of higher interest rates, and the eroding of the group’s net asset value via net unrealized losses (negative OCI)
The Mortgage REIT Business Doesn’t Work…
May 26, 2013
Key Takeaways: · The good times are over for mortgage REITs. o Mortgage market dynamics are inherently difficult to predict. o A flatter yield curve has negatively impacted net interest rate spread income across the entire mortgage REIT universe. We’re already seeing deteriorating gross ROE’s from some of the largest industry constituents. o The Fed has only caused a marginal tightening in mortgage spreads, and in our view, a marginal widening due to reduced Fed activity (if/when it happens) is perhaps the best-case scenario as it relates to spread income for the group. A continuation of spread tightening is likely the base-case scenario, which is negative for the group. o Net interest rate spread income and gross ROE’s will only be materially enhanced
Sporting Goods Weak…Weather to Blame?
May 26, 2013
Let’s take a look at some of the recent results reported by companies in the sporting goods space.
Meet the New Boss; Same as the Old Boss
May 25, 2013
Any time a major company completes a management change, a new business strategy or changes in operations tend to follow. After undergoing an aggressive cost-cutting campaign during the past year, Procter & Gamble (click ticker for report: ) CEO and Chairman Bob McDonald seemed secure in his job. Thus, we were shocked to see McDonald announce his retirement, and even more surprised to see that his replacement would be the man he replaced, A.G. Lafley. Other than JC Penney rehiring Mike Ullman, we haven’t seen many companies bring back the old CEO, unless he or she was the founder. Recent examples like Phil Knight, Howard Schulze, Michael Dell, and Steve Jobs were all founders that were passionate about returning their
Dividend Increases for the Week Ending May 24
May 25, 2013
This week was packed with companies raising their cash dividends. Below we provide a list of firms that upped their dividends for the week ending May 24. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here. Firms Raising Their Dividends This Week AAON (AAON): now semi-annual dividend of $0.10 per share, was $0.08. American States Water Company (AWR): now $0.405 per share quarterly dividend, was $0.355. Bristow Group (BRS): now $0.25 per share quarterly dividend, was $0.20. Bunge Limited (BG): now $0.30 per share quarterly dividend, was $0.27. Center Bancorp (CNBC): now $0.075 per share quarterly dividend, was $0.055. Donaldson (DCI): now $0.13 per share
