Another week of new all-time highs for the Dow Jones Industrial Average coupled with a good start to earnings season has given optimists little reason to fret. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.
Keep in mind that some companies�deserve�their current valuations. Life sciences company Life Technologies�jumped to new highs this week following word that Thermo Fisher Scientific�will make a bid for the company, and that other private-equity firms are finalizing their bids.�With Life Technologies having publicly announced a strategic review in January, it seems like a long-awaited buyout could be right around the corner for shareholders.
Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
Leave the wrapper on
The returns on confectioner Tootsie Roll Industries (NYSE: TR ) have certainly been sweet for investors over the past year. You have to go back to the summer of 2010 to find sugar prices that were as low as they are now,�which has played a good part in helping Tootsie Roll keep that aspect of its costs down. But taking a bigger view of what's going on with Tootsie Roll and comparing that to its current valuation creates a sour taste in my mouth.
Top 10 Freight Companies To Watch In Right Now: Peregrine Pharmaceuticals Inc.(PPHM)
Peregrine Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, engages in the research and development of monoclonal antibodies for the treatment of cancer and viral infections. Its products under development include bavituximab, a phosphatidylserine-targeting antibody, which is in Phase II trials for the treatment of front-line and second-line non-small cell lung cancer (NSCLC), and pancreatic cancer; and Cotara, a DNA/histone-targeting antibody that is in Phase II trial for the treatment of recurrent glioblastoma multiforme. The company is also developing bavituximab in combination with ribavirin, which is in Phase II clinical trial for the treatment of patients with genotype-1 hepatitis C virus infection. In addition, it has investigator-sponsored trial programs that evaluate bavituximab for the treatment of patients with liver cancer, second-line castration resistant prostate cancer, HER-2 negative metastatic breast cancer, and locally advanced or metasta tic NSCLC. Further, the company, through its wholly-owned subsidiary, Avid Bioservices, Inc., provides integrated current Good Manufacturing Practices (cGMP) commercial and clinical manufacturing services in the United States, including contract manufacturing of antibodies, recombinant proteins, and enzymes; cell culture development; process development; and testing of biologics for biopharmaceutical and biotechnology companies under cGMP. It has licensing agreements with the University of Texas Southwestern Medical Center; Merck KGaA; SuperGen, Inc.; and Affitech A/S. Peregrine Pharmaceuticals, Inc. intends to sell its products in the United States and internationally in collaboration with marketing partners or through a direct sales force. The company was founded in 1981 and is based in Tustin, California.
Advisors' Opinion:- [By Sean Williams]
Also gaining double digits on the week was the highly embattled Peregrine Pharmaceuticals (NASDAQ: PPHM ) which rallied after the FDA approved its late-stage trial design for its second-line non-small-cell lung cancer immunotherapy, Bavituximab. While trial design approvals are rarely big news, it is in this case because mid-stage results for Bavituximab have been all over the place. At first Bavituximab demonstrated a better than doubling in progression-free survival followed weeks later by management's insistence that investors were not to trust the data. A few months later, following a review, we were told to trust the data again. This filing helps relieve some of the confusion surrounding Peregrine's mid-stage results, and hopefully its phase 3 study will be black-and-white obvious as to whether Bavituximab provides a statistically significant benefit.
- [By Tom Bemis]
Few major companies are reporting after Monday�� bell. Results are expected from Destiny Media Technologies (DSNY) �, Stanley Furniture Co. (STLY) � and Peregrine Pharmaceuticals. (PPHM) �.
- [By Rick Munarriz]
Peregrine Pharmaceuticals (NASDAQ: PPHM ) is an upstart biotech targeting the treatment and diagnosis of cancer through monoclonal antibodies. It has a potential winner in its lead candidate that will begin its telltale phase 3 clinical trial later this year.
- [By Sean Williams]
What: Shares of Peregrine Pharmaceuticals (NASDAQ: PPHM ) , a biopharmaceutical company developing monoclonal antibodies to treat cancer, jumped as much as 19% after the company reported final data on its mid-stage second-line non-small cell lung cancer drug, Bavituximab, at the annual American Society of Clinical Oncology meeting.
Hot Life Sciences Companies For 2014: Axxess Pharma Inc (AXXE)
Axxess Pharma Inc. is a pharmaceutical company. It is engaged in marketing of dermatological, therapeutic nutritionals, pain management, and diagnostic products in Canada and abroad. In October 2013, the Company announced that it has incorporated a wholly owned subsidiary AllStar HealthBrands Inc.
The Company various products include Britical Tablets, Gravergol Capsules, Lactrase Capsules, Somnol Tablets, Triferexx -150 Polysaccharide-iron complex, Urasal Granules, Axspaz Tablets, Vivol Tablets, Hydraxx Lotion, Kemsol Solution, Soropon shampoo, and Skin care Products. Its distribution network includes physicians, hospitals, Government and defense institutions, and pharmacies.
Advisors' Opinion:- [By Peter Graham]
Small cap health care or personal care stocks Axxess Pharma Inc (OTCMKTS: AXXE), Radiant Creations Group Inc (OTCBB: RCGP) and Tauriga Sciences Inc (OTCMKTS: TAUG) have recently been attracting attention in various investment newsletters or in investor alerts. Some of the attention may have to do with paid promotions that two of these small caps have been the subject of. So how healthy are these three small cap health care or personal care orientated stocks? Here is a checkup:
- [By Peter Graham]
Small cap healthcare and lifestyle stocks Axxess Pharma Inc (OTCMKTS: AXXE), Medefile International Inc (OTCMKTS: MDFI) and Intelligent Living Inc (OTCMKTS: ILIV) have all been getting some extra attention lately thanks in part to a few disclosed paid promotions or investor relations type of activities. But just how healthy are these small cap stocks for investors and traders alike? Here is a quick reality check:
Axxess Pharma Inc (OTCMKTS: AXXE) Has Been Busy With the Press ReleasesSmall cap Axxess Pharma is a specialty Health Care Products Company dedicated to improving health and quality of life by offering select medicines, nutritional supplements and over the counter remedies all across the Americas. On Friday, Axxess Pharma fell 7.52% to $0.295 for a market cap of $12.46 million plus AXXE is down 88.8% over the past year and down 99.8% over the past five years in intermittent trading according to Google Finance.
Hot Life Sciences Companies For 2014: Tellabs Inc.(TLAB)
Tellabs, Inc. designs, develops, and supports telecommunications networking products for communication service providers in the United States and internationally. Its products and services enable customers to deliver wireless and wireline voice, data, and video services to business and residential customers. The company operates through three segments: Broadband, Transport, and Services. The Broadband segment provides access products that enable service providers to deliver bundled voice, video, and high-speed Internet/data services over copper or fiber networks; managed access products, which deliver wireless and business services primarily outside of North America; and data products, including packet-switched products that enable wireless and wireline carriers to deliver mobile voice and Internet services, and wireline business services to their customers. The Transport segment enables service providers to manage network bandwidth by adding capacity needed; and wireline and wireless providers to support metro networks, mobile services, and business services for enterprises, as well as triple-play voice, video, and data services for residential consumers. The Services segment delivers deployment, training, support, and professional services, which support various phases of the network, such as planning, building, and operating. Tellabs, Inc. serves primarily communication services providers, including local exchange carriers; wireline and wireless service providers; multiple system operators; competitive service providers; distributors; original equipment manufacturers; system integrators; and government agencies. The company sells its products and services through its direct sales and sales support personnel, value-added resellers, independent sales representatives, distributors, and public and private network providers. Tellabs, Inc. was founded in 1974 and is headquartered in Naperville, Illinois.
Advisors' Opinion:- [By SA Pro Top Ideas]
Stock Movers and Great Calls
Saidal Mohmand argued Wednesday that Tellabs (TLAB) was a strong assets play on the verge of a turnaround. The stock is +5.9% since. Read article » On June 13, Stephen Lin said that Ellie Mae's (ELLI) dominant position could mean 45% upside. Shares are +30.7% since. Read article »
Alpha-Rich long and short ideas regularly move stocks and identify stocks that are about to move. Some notable recent calls subscribers had early access to:To Come Today
Don't forget to check your SA Pro dashboard later today for the latest Alpha-Rich ideas, including a REIT with strong management and many catalysts. Any thoughts to share on the latest Alpha-Rich ideas? Leave a comment here. Have a great weekend.
SA Pro Editors
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The SA Pro team is Eli Hoffmann (Editor in Chief), Rachael Granby (Editorial Product Manager), Daniel Shvartsman, Samir Patel, Michael McDonald, and Jeffrey Fischer (Senior Pro Editors). You can reach us at pro-editors@seekingalpha.com.
Hot Life Sciences Companies For 2014: EQT Midstream Partners LP (EQM)
EQT Midstream Partners, LP owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company provides substantially all of its natural gas transmission, storage and gathering services under contracts with fixed reservation and/or usage fees. The Company focuses its operations in the Marcellus Shale fairway in southern Pennsylvania and northern West Virginia. It provides midstream services to EQT Corporation in the Appalachian Basin across 22 counties in Pennsylvania and West Virginia through its two primary assets: its transmission and storage system, which serves as a header system transmission pipeline, and its gathering system, which delivers natural gas from wells and other receipt points to transmission pipelines.
Equitrans Transmission and Storage System
As of December 31, 2011, the Company�� transmission and storage system included an approximately 700 mile FERC-regulated interstate pipeline system that connects to five interstate pipelines and multiple distribution companies, and it is supported by 14 associated natural gas storage reservoirs with approximately 400 million cubic feet per day of peak withdrawal capability and 32 billion cubic feet of working gas capacity. As of December 31, 2011, its transmission assets had total throughput capacity of approximately 1.0 trillion British thermal units per day.
Equitrans Gathering System
The Company�� gathering system consists of approximately 2,100 miles of FERC-regulated low-pressure gathering lines that have multiple delivery interconnects with its transmission and storage system and a gathering and interstate pipeline system owned and operated by Dominion Transmission, Inc.
Advisors' Opinion:- [By Lee Jackson]
EQT Midstream Partners L.P. (NYSE: EQM) has everything the Oppenheimer team is looking for: low-risk, fee-based contracts in an attractive region, low financial leverage, high distribution growth and coverage and a supportive parent with assets to sell. Oppenheimer has a $55 price target for the stock. The Thomson/First Call estimate is at $54. Investors are paid a 3.4% distribution which Oppenheimer thinks may grow to 4.3% in 2014. Remember, MLP distributions may include return of principal.
- [By Michael Flannelly]
Goldman Sachs analysts started coverage on EQT Midstream Partners LP (EQM) early on Monday, giving the oil and natural gas distribution company a bullish rating due to its low-risk cash flows.
The analysts rate EQM as “Buy” and see shares reaching $59. This price target suggests a 22% upside to the stock’s Friday closing price of $48.28.
Goldman Sachs analyst Theodore Durbin said, “EQM’s FERCregulated pipeline and storage assets offer stable, low-risk fee-based cash flows supported by firm long-term contracts. A robust production outlook in the Marcellus and meaningful inventory of dropdown assets at the parent enhances distribution growth visibility. EQM has a low cost of capital, no debt outstanding, high liquidity and an aligned sponsor that should bolster the partnership�� multi-year double-digit distribution growth outlook.”
EQT Midstream Partners shares were inactive during pre-market trading on Monday. The stock is up 54.99% year-to-date.
Hot Life Sciences Companies For 2014: First Niagara Financial Group Inc.(FNFG)
First Niagara Financial Group, Inc. operates as the holding company for First Niagara Bank, N.A. that provides retail and commercial banking, and other financial services to individuals, families, and businesses. It offers retail deposit accounts, which include savings, negotiable order of withdrawal, checking, money market, and certificate of deposit accounts, as well as provides business savings and checking, money market, cash management accounts, and municipal deposit accounts. The company?s loan portfolio comprises commercial real estate and multi-family loans; commercial business loans; residential real estate loans; home equity loans; and consumer loans consisting of indirect mobile home loans, and personal secured and unsecured loans. It also sells insurance products, including commercial and personal insurance, surety bond, life, disability, and long-term care coverage products. In addition, the company offers risk management consulting services comprising altern ative risk and self-insurance services, claims investigation and adjusting services, and third party administration services for self insured workers? compensation plans. Further, it provides employee benefits plan and compensation consulting services. Additionally, First Niagara Financial Group offers wealth management services that manage client funds utilizing various third party investment vehicles consisting of stocks, bonds, mutual funds, and annuities, as well as other investment products, such as individual retirement accounts, education savings plans, and retirement plans. As of December 31, 2010 it operated 257 bank branches, including 115 in Upstate New York and 142 branches in Pennsylvania. The company was founded in 1870 and is based in Buffalo, New York.
Advisors' Opinion:- [By Rick Munarriz]
Friday
Things are usually quiet on Fridays, but that won't stop First Niagara Financial Group (NASDAQ: FNFG ) from reporting. The parent company of First Niagra Bank -- a community banker with 430 branches and $37 billion in assets -- is expect to post marginal improvement on the top and bottom lines. - [By Selena Maranjian]
Kahn Brothers reduced its stake in companies such as First Niagara Financial Group (NASDAQ: FNFG ) and Bristol-Myers Squibb (NYSE: BMY ) . First Niagara Financial Group, yielding 2.9%, is trading near a 52-week high. It has more than tripled its asset base since the financial crisis, though it hiked its share count to do so, which dilutes share value. Meanwhile, the company has been managing its credit risk well, and should benefit from rising interest rates. It's poised for a solid turnaround, and with a recent P/E ratio of 15.5 and a forward P/E of 13, is worth a look.
- [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of Kansas City Southern (NYSE: KSU) were down 15.32 percent to $99.22 after the company reported downbeat Q4 earnings. International Game Technology (NYSE: IGT) shares tumbled 14.16 percent to $15.15 after the company reported weaker-than-expected fiscal first-quarter results. Sterne Agee downgraded the stock from Buy to Neutral and cut the price target from $21.50 to $18.00. First Niagara Financial Group (NASDAQ: FNFG) was down, falling 10.79 percent to $9.22 on Q4 results. The company issued weak FY14 earnings outlook.
Hot Life Sciences Companies For 2014: Middlesex Water Co (MSEX)
Middlesex Water Company (Middlesex), incorporated in 1897, is a water utility company. The Company owns and operates regulated water utility and wastewater systems in New Jersey, Delaware and Pennsylvania. Middlesex also operates water and wastewater systems under contract on behalf of municipal and private clients in New Jersey and Delaware. It operates in two segments: Regulated and Non-Regulated. During the year ended December 31, 2011, its Regulated segment contributed approximately 90% of total revenues. The Regulated segment consists of collecting, treating and distributing water on a retail and wholesale basis to residential, commercial, industrial and fire protection customers in parts of New Jersey, Delaware and Pennsylvania. This segment also includes regulated wastewater systems in New Jersey and Delaware. The Non-Regulated segment consists of non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware.
The Company�� subsidiaries include Tidewater Utilities, Inc. (Tidewater) and Tidewater�� wholly owned subsidiaries, Southern Shores Water Company, LLC (Southern Shores) and White Marsh Environmental Systems, Inc. (White Marsh). Its other subsidiaries are Pinelands Water Company (Pinelands Water) and Pinelands Wastewater Company (Pinelands Wastewater) (collectively, Pinelands), Utility Service Affiliates, Inc. (USA), Utility Service Affiliates (Perth Amboy) Inc., (USA-PA), Tidewater Environmental Services, Inc. (TESI) and Twin Lakes Utilities, Inc. (Twin Lakes).
Middlesex System
The Middlesex System in New Jersey provides water services to approximately 60,000 retail customers, primarily in eastern Middlesex County, New Jersey and provides water under wholesale contracts to the City of Rahway, Townships of Edison and Marlboro, the Boroughs of Highland Park and Sayreville and the Old Bridge Municipal Utilities Authority. The Middlesex System treats, stores and dis! tributes water for residential, commercial, industrial and fire prevention purposes. The Middlesex System also provides water treatment and pumping services to the Township of East Brunswick under contract. The Middlesex System produced approximately 64% of its 2011 consolidated operating revenues.
The Middlesex System�� retail customers are located in an area of approximately 55 square miles in Woodbridge Township, the City of South Amboy, the Boroughs of Metuchen and Carteret, portions of the Township of Edison and the Borough of South Plainfield in Middlesex County and, to a minor extent, a portion of the Township of Clark in Union County. Retail customers include a mix of residential customers, industrial concerns and commercial and light industrial facilities.
The contract customers of the Middlesex System comprise an area of approximately 146 square miles with a population of approximately 303,000. Contract sales to Edison, Sayreville, Old Bridge, Marlboro and Rahway are supplemental to the existing water systems of these customers. The Middlesex System provides treated surface water under long-term agreements to East Brunswick, Marlboro, Old Bridge and Sayreville. Middlesex provides water service to approximately 300 customers in Cumberland County, New Jersey. Its Middlesex System, which produced approximately 15.6 billion gallons in 2011, obtains water from surface sources and wells, or groundwater sources.
Tidewater System
Tidewater, together with its wholly owned subsidiary, Southern Shores, provides water services to approximately 36,000 retail customers for domestic, commercial and fire protection purposes in over 300 separate community water systems in New Castle, Kent and Sussex Counties, Delaware. White Marsh is an additional wholly owned subsidiary that is unregulated as to rates and operates water and wastewater systems under contract for approximately 4,700 residential customers. White Marsh also owns the office buildings that Tid! ewater us! es as its central business office campus. The Tidewater System produced approximately 25% of its 2011 consolidated operating revenues. Its Tidewater System produced approximately 2 billion gallons in 2011 from 159 wells.
Utility Service Affiliates-Perth Amboy
Utility Service Affiliates-Perth Amboy (USA-PA) operates the City of Perth Amboy, New Jersey�� water and wastewater systems under a 20-year agreement, which expires in 2018. USA-PA serves approximately 11,000 homes and businesses, most of which are served by both the water and wastewater systems. USA-PA produced approximately 9% of its 2011 consolidated operating revenues.
Pinelands System
Pinelands Water provides water services to approximately 2,500 residential customers in Burlington County, New Jersey. Pinelands Water produced less than 1% of its 2011 consolidated operating revenues. Pinelands Water is not physically interconnected with the Middlesex System. Pinelands Wastewater provides wastewater services to approximately 2,400 residential customers. Under contract, it also services one municipal wastewater system in Burlington County, New Jersey with approximately 200 residential customers. Water supply to its Pinelands System is derived from four wells, which produced approximately 159.1 million gallons in 2011.
Utility Service Affiliates, Inc.
Utility Service Affiliates, Inc. (USA) offers residential customers in New Jersey and Delaware water service line and sewer lateral maintenance programs (LineCare). USA produced less than 1% of its 2011 consolidated operating revenues.
TESI System
TESI provides wastewater services to approximately 2,200 residential retail customers in Delaware. TESI produced approximately 1% of its 2011 consolidated operating revenues. The TESI System treated approximately 76.8 million gallons in 2011. The TESI System consists of seven wastewater treatment systems in Southern Delaware.
Twin Lakes Sys! tem
Twin Lakes provides water services to approximately 120 residential customers in Shohola, Pennsylvania. Twin Lakes produced less than 1% of its 2011 consolidated operating revenues. Water supply to Twin Lakes��customers is derived from two wells, which delivered approximately 26.6 million gallons in 2011.
Advisors' Opinion:- [By Marc Bastow]
Utility operator Middlesex Water (MSEX) raised its quarterly dividend 1.3% to 18 cents per share, payable on Dec. 2 to shareholders of record as of Nov. 15. The increase marks the 41st consecutive annual dividend increase.
MSEX Dividend Yield:�3.53% - [By Dividends4Life]
Starting in 2013 the federal tax rates on qualified dividends are 0%, 15% and 20%. The 20% rate is for taxpayers in the 39.6% tax bracket. For those in the 10% and 15% brackets, there is no tax on qualified dividends. In contrast, ordinary income is taxed at rates up to up to 39.6%. Below are several stocks that have consistently paid dividends through depressions, recessions, world wars, and other political and economic upheavals:WGL Holdings Inc. (WGL) provides natural gas service in the Washington, DC, metropolitan area and surrounding regions, including Maryland and Virginia. Yield: 4.1% | Paid Dividends Since: 1852Exxon Mobil Corp. (XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company. Yield: 2.7% | Paid Dividends Since: 1882Consolidated Edison, Inc. (ED) is an electric and gas utility holding company serves parts of New York, New Jersey and Pennsylvania. Yield: 4.4% | Paid Dividends Since: 1885The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries. Yield: 3.2% | Paid Dividends Since: 1891The Coca-Cola Company (KO) is the world's largest soft drink company, KO also has a sizable fruit juice business. Yield: 2.9% | Paid Dividends Since: 1893General Mills, Inc. (GIS) is a major producer of packaged consumer food products, include cereal, yogurt and Betty Crocker desserts/baking mixes. Yield: 3.0% | Paid Dividends Since: 1898Avista Corp. (AVA) generates, transmits and distributes energy as well as engages in energy-related businesses in the United States and Canada. Yield: 3.0% | Paid Dividends Since: 1899MGE Energy Inc. (MGEE) is a public utility holding company that supplies electric service to apx. 140,000 customers; and natural gas service to apx. 145,000 customers in Wisconsin (as of December 2012). Yield: 2.8% | Paid Dividends Since: 1909Xcel Energy Inc. (XEL) offers energy-related prod
- [By Lawrence Meyers]
WGL serves about 170,000 customers in the Mid-Atlantic. So as you can see, it�� a broadly diversified dividend stock, and that�� one reason it has paid a dividend for 37 years. The dividend yield for WGL stock is presently at 4.4%.
Middlesex Water Company (MSEX)Dividend yield: 3.7%
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