Ford: This Is Why The Stock Is At $16.53

By Jason Russ:

Since I wrote my last article about Ford (NYSE:F), I count the following on Seeking Alpha: 42 bullish articles and 6 neutral articles about Ford. Many of those articles say that Ford is worth over $ 20 per share. I noted the following in my previous article:

In the next 1-3 months, I predict a dip back to $ 16.75 and the stock may test resistance around $ 16.25.

That turned out to be right on and I still expect the stock to have difficultly hitting $ 20 any time soon.

In many of the bullish articles about Ford, there seems to be dismay and confusion about how and/or why the market is mispricing Ford. I’ve seen many comments about how Ford is a growth stock and not a cyclical. In the latest article, one commenter moaned about the stock being manipulated. The author of the article stated that, "One such company whose


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Revealed: America’s Best (And Worst) Airlines

Airline Reviews on Twitter Expose Best and Worst

By Robert Williams, Founder

Thank God for angry airline passengers.

I’m talking about the folks PO’d enough to vent about it on Twitter (TWTR).

“Hey #UnitedAirlines… you really suck!”

“Those #AmericanAirlines losers canceled my flight!”

As it turns out, those tweets can be infinitely valuable to your portfolio.

So valuable, in fact, that they can double the performance of the benchmark average.

Twitter Mining Reveals America’s Best – And Worst – Airlines

Luminoso, a text analysis company, just did something wonderfully ambitious…

It analyzed the social media mentions of five airlines – United Airlines (UAL), JetBlue (JBLU), Delta Airlines (DAL), Virgin America, and American Airlines (AAL) – during the month of August. (August just happens to be among the busiest travel months of the year.)

The company parsed more than 157,000 tweets, cataloging them by relevant keywords like “delays,” “cancellations,” or “luggage.”

Now, remember… angry people are far more likely to publicly vent about bad experiences than happy people are to boast about pleasant ones. (You know you’re guilty!)

Nonetheless, Virgin America had the most positive responses, winning the Twitter war in key areas like customer service, and fewer delays and cancellations.

The dog with fleas among the group – well, at least according to the tweets – is United Airlines, which seems to specialize in exasperating and tormenting its passengers.

Sentiment Ranking and Analysis Categories: top five airlines according to tweets

Click to enlarge

For readers who enjoy sitting in airports for long periods of time, and then shopping for new clothes at their arrival destinations, United Airlines is a “must book.”

Not to be outdone in the ambition department, I then took Luminoso’s Twitter data and reconciled it against the airlines’ stock performance.

What I discovered was more than I ever bargained for…

Happy Customers, Happy Shareholders…

Boy, what a lesson this was in the value of the customer experience!

Look what happens when you measure the stock performance of the publicly traded airline that Twitter says is tops – JetBlue – alongside the worst, United Airlines.

(I had to use JetBlue because the true Twitter champion, Virgin America, hasn’t IPO’d yet.)

The Tweets Tell the Tale: JetBlue and United Airlines

Buying shares of the fans’ favorite would’ve resulted in an additional 20% to your ROI over the course of a year.

When measured against the entire transportation sector – as represented by the iShares Transportation Average (IYT) ETF – JetBlue more than doubled the return. And since airlines only represent a small percentage of the ETF’s holdings, it demonstrates how airlines, in general, are enjoying a banner year.

The Next Great Airline Stock?

Virgin America has been flying since 2007, and backers – like British tycoon and Founder of the Virgin Group, Richard Branson – have eyed an IPO all along.

Well, the big day now looms on the horizon.

In a statement announcing its filing with the SEC, Virgin America reported that the number of shares to be offered and the price range for the proposed offering haven’t yet been determined.

However, it did give a fundraising target of $ 115 million. Barclays and Deutsche Bank will lead the IPO.

I’ll concede that the company wasn’t even on my radar until I analyzed the Twitter data.

Bottom line: Passengers really love this airline!

And the IPO is now officially on my “Watch List.”

Stay tuned,

Robert Williams

The post Revealed: America’s Best (And Worst) Airlines appeared first on Wall Street Daily.
By Robert Williams


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After-Hours Stock Movers 9/18 (CNQR) (MCP) (JBLU) Higher; (TIBX) (RHT) (ORCL) Lower (more…)

Concur Technologies, Inc. (Nasdaq:CNQR) 19.7% HIGHER; SAP SE (NYSE: SAP) has entered into an agreement to acquire Concur Technologies, Inc. (Nasdaq: CNQR). The per-share purchase price of US$ 129 represents a 20% premium over the September 17 closing price, a 21% premium over the one month volume weighted average price per share and an enterprise value of approximately US$ 8.3 billion.

Quest Resource Holding Corporation (NASDAQ: QRHC) 13.4% LOWER; intends to offer shares of its common stock, together with warrants to purchase shares of its common stock, in an underwritten public offering. Maxim Group LLC is acting as sole book-running
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Seadrill: Lessons From The Frontline

By Elliott Gue:

On May 21, 2008, Frontline (NYSE: FRO) announced that the oil tanker owner had raised its quarterly dividend to $ 2.75 per share from $ 2 per share. At the time, the stock yielded more than 16 percent, making it a tempting morsel for income-starved investors.

As the best-of-breed tanker operator, Frontline had benefited from robust demand and tight supply in its core market. Investors also reaped the rewards; the stock generated a total return of almost 250 percent over the preceding two years.

Frontline’s high yield and impressive gains underscore why some of the wealthiest families in modern history built their fortunes in the tanker business.

John Fredriksen, Frontline’s chairman, wasn’t born into wealth. He took some big risks in the early 1980s, parlaying a handful of assets into one of the industry’s largest empires. By mid-2008, he was one of Europe’s richest men; today, his net worth is estimated at


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Think Like An Owner – Part 2

By Dividend Mantra. Read more » »
Related Stocks: PG, KO, CLX, PEP, RTN, BP, KMI,
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Crocs: Invest Alongside With Blackstone Group

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Striking It Rich in East Africa

LNG Export Potential Discovered Off African Coast

By Tim Maverick, Staff Writer

When investors think of a natural gas boom with promising lucrative exports, the United States usually comes to mind.

But readers may soon conjure another image…

You see, there’s been a rash of massive natural gas discoveries half a world away in the water off Southeastern Africa. In fact, six of the 10 top oil and gas discoveries of 2013 were in Africa!

As a result, the continent has become a hotbed of energy industry activity, with more than 500 companies now exploring there.

Of particular interest to the energy industry are the areas off the coast of Mozambique and Tanzania.

Exploration companies have discovered more than 180 trillion cubic feet (tcf) of natural gas in the water near Mozambique and nearly 50 tcf of gas near Tanzania – and there’s a promise of more.

Both countries are jostling to be the first to export liquid natural gas (LNG) to energy-hungry consumers… especially since demand for LNG is expected to double over the next 20 years.

Everyone’s on board to get this new LNG source going, but there’s one major problem… the lack of infrastructure.

Some well-known firms have jumped in hoping to reap the bounty, but it won’t be easy.

Getting Over the Hurdles

It’s estimated that between $ 20 billion and $ 40 billion will need to be invested in both countries just to get gas projects started in the next 10 years.

That price tag raises some questions for smart investors looking to support the companies taking on these projects.

  1. Can anyone but the oil supermajors pull off these projects? As The Wall Street Journal notes, a company with a market capitalization of “only” $ 55 billion has never pulled such a grand project. Only the oil supermajors have.
  1. Can the companies leading these new projects find customers in Asia? This is key, since about 70% of the world’s LNG is consumed by China, South Korea, Japan, India, and Taiwan.

And the most important question:

  1. Can these companies maintain a good relationship with the local governments? In this matter, caution is warranted.

Tanazania says it’ll conduct a “review” of all outstanding gas production sharing agreements. Likely, the goal is to get more money out of the natural gas companies.

Mozambique’s government, too, says it prefers to have LNG facilities constructed onshore to beef up employment and infrastructure.

The bottom line is that all the companies involved will need to get through each of these obstacles in order to succeed.

Companies Leading the Way

Two of the leading players in the region are Anadarko Petroleum (APC) and Italy’s Eni SpA (E). Both seem to be meeting the inherent challenges head-on.

In 2011, both agreed to build the world’s second-biggest liquefied natural gas facility in Mozambique. In the initial phase, the facility will have a total capacity of five million metric tons a year and will eventually reach 20 million tons.

The two companies have already invested several billion dollars into the project, boosting the local economy. In fact, the International Monetary Fund projects the Mozambique economy will grow 8% annually over the medium term.

Plus, Anadarko is also in negotiations with buyers from Japan and Thailand to purchase two-thirds of the capacity of the first train of its proposed LNG processing facility.

Two other firms – Norway’s Statoil ASA ADR (STO) and Britain’s BG Group PLC ADR (BRGYY) –– have nearly as ambitious plans in Tanzania.

Thus, now is really the sweet spot for investing in African LNG.

If Anadarko, Eni, and the others fail, the window of opportunity may close as other countries, such as the United States, begin exporting LNG.

But if the companies succeed, the region may become, in the words of Anadarko CEO Al Walker, “the third-largest exporter of LNG in the world.”

And “the chase” continues,

Tim Maverick

The post Striking It Rich in East Africa appeared first on Wall Street Daily.
By Tim Maverick


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3 Questions Every Dividend Investor Should Ask

When investing for retirement income, dividend investors should consider more than just the yield of a company’s distributions.

The post 3 Questions Every Dividend Investor Should Ask appeared first on InvestorPlace.

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Three Questions That Every Dividend Investor Should Ask Themselves

Investors purchase dividend stocks in order to generate a reliable source of cash that would help them pay for their expenses in retirement. In theory, this is a great idea. However, certain little details could seriously derail the investor’s success. In order to ensure that they will be able to hit their investment goals, dividend investors should ask themselves the following three…

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Fiat: Preparing To Strike

By GreenWood Investors:

[Originally published 8/12/2014]

In A Nutshell: Fiat SpA (OTCPK:FIATY): the most unique investment we’ve ever found. FCA has the only management team in the auto industry that makes decisions based on ROIC, which is the most important value driver in capital-intensive businesses, as well as a robust history of successful turn-arounds. The stock trades at steep discounts to present value and very dramatic discounts to future value based on the most robust product plan in the auto industry. Using historical market responses to vehicle refreshments, we think FCA’s future value is north of €30 per share and if management’s recent plan is achievable, north of €50 per share into 2017. Thankfully, the stock is hated by European sell-side analysts and it has historically been one of the most-shorted stocks in Italy. Through our conversations with US analysts, we are optimistic a US-listed company will receive a more favorable reception. Yet,


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