Arch Coal, the second largest U.S. coal producer, is another casualty of the sharp decline in coal consumption. After a steady slide in its business that began in 2011 and accelerated when oil and natural gas prices plunged in 2014, the company filed for bankruptcy in January 2016. Continue reading
An Update on Merck (MRK)
Product Pipeline Successes. Merck has enjoyed a couple of notable successes in its product pipeline over the past year. The first and most important is Keytruda (pembrolizumab), the company’s anti-PD-1 (programmed death receptor-1) immunotherapy treatment for cancer. Keytruda has already been approved to treat melanoma and NSCLC (non-small cell lung cancer). It was awarded Breakthrough Therapy status by the FDA in the Continue reading
Posted in Health Care, MRK
Tagged Accounting, GAAP vs. Non-GAAP
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Notes and Analysis from AXP’s Analyst Day
Shareholders of the American Express Company have had a pretty rough ride over the past few years. Since 2013, when AXP’s stock earned nearly twice the S&P 500, the stock has underperformed the broader market significantly Continue reading
Greece Meets EU Ministers. Changes to GREK.
Greece’s quest to pass the next milestone on it bailout plan will get a hearing on Monday in Brussels at a meeting of EU finance ministers. Press reports suggest that the EU and IMF are still looking for about €9 billion in further austerity measures by 2018 to help plug a deficit. The Germans, however, appear willing to cut Greece some slack by delaying these measures for a few years to give Greece greater breathing room to deal with its refugee crisis. Continue reading
Notes from General Electric’s Annual Outlook Meeting
This has been an eventful year for General Electric (GE), one that brought about the most significant changes that the company has seen in its 127 year history. The company has repositioned its business mix, drastically reducing its profile in financial services and emphasizing its industrial core. It has also stepped up its drive to infuse its products with sophisticated technology (e.g. internet of things (IoT), additive manufacturing and advanced software) that can help its products run harder and longer and give customers greater insight into their utilization efficiency. Continue reading
Posted in GE
Tagged General Electric
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American Water Works (AWK) Update
2015 has been another strong year for the stock of American Water Works (AWK). Year-to-date (through Dec. 18), it is up 11.7% on price and has delivered a 14.5% total return. By comparison, the S&P 500 is down 2.6% on price and down 0.6% on total return. Meanwhile, the Dow Jones Utility Average, of which AWK is now a member, is down 8.1% on price. Continue reading
Posted in AWK, Utilities
Tagged American Water Works, Water utilities
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Investing in Greece: Notes from the 2015 Capital Link Conference
Although the recovery in the Eurozone is underway, Greece has so far been left behind. Europe is growing now at an overall rate of 2% per year. Even the other peripheral countries that had been experiencing difficulties– Ireland, Italy, Portugal and Spain – are now showing positive growth. Greece, meanwhile, will likely report that its economy contracted again in 2015, but probably only slightly. It is expected to return to growth in the second half of 2016. Continue reading
Notes from the 2015 Massachusetts Investor Conference
Author’s Note: Municipal bonds have been on my radar for some time, even though my focus has been on stocks and corporate bonds. I have attended the Massachusetts Investor Conference for the past four years, as a way to learn about state government, including financial reporting practices and recent financial performance. Continue reading
Posted in Municipal Bonds
Tagged Municipal Bonds
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Campbell Fiscal 2016 First Quarter Update
Campbell Soup (CPB) reported fiscal 2016 first quarter GAAP earnings of $0.62 per diluted share, compared with $0.78 in the comparable prior year period. Excluding special items, the company’s non-GAAP earnings were $0.95, compared with $0.78 last year. Continue reading
Posted in CPB
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Consolidated Water (CWCO) 2015 Third Quarter Update
Consolidated Water (CWCO) reported 2015 third quarter earnings of $0.12 per share, compared with $0.13 per share in the prior year comparable quarter. Revenues of $14.6 million, were down 14% from $17.0 million last year. Both earnings and revenues fell short of consensus views, but this was a quarter in which I had no expectations for any significant changes in the company’s performance, either up or down. Continue reading
Brightcove 2015 Third Quarter Update
The company reported a third quarter GAAP loss of $0.04 per share, much better than last year’s $0.12 loss. Adjusted (non-GAAP) EPS, which excludes (non-cash) stock-based compensation and merger-related costs was positive at $0.03, a reversal of last year’s $0.03 loss. I was anticipating a GAAP loss of $0.08 and a non-GAAP loss of $0.02, so the company’s performance exceeded my expectations (and also the Street’s, since my earnings projection was in line with the consensus estimate). Continue reading
Posted in BCOV
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Consolidated Water (CWCO) Update
Consolidated Water reported net income attributable to stockholders of $2.23 million or 15 cents per share for the 2015 second quarter ended June 30. This was below last year’s $2.76 million or $0.19 per share and also a penny short of the consensus estimate. Continue reading
Posted in CWCO
Tagged Consolidated Water Co., desalinated water, Water utilities
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