Sunday, August 17, 2014

Best Transportation Stocks To Own Right Now

Can you believe that it's only been five years since the world stopped using software and switched to apps? The distinction is pretty subtle, but nonetheless important -- without a proliferation of diverse apps across mobile ecosystems, the smartphone revolution might have been turned back, or at least held in check for some time. The past five years have seen quite a bit of technological innovation, but only a few of these developments, including apps, have truly taken hold in popular culture.

The following list will take you through five of the top new technological breakthroughs that have become the biggest hits with consumers. You'll probably be familiar with them all, but the sheer speed at which they've captured the public's imagination (and its spending money) might surprise you.

5. Next-gen electric cars (2008)
The first Tesla (NASDAQ: TSLA  ) Roadsters began arriving at customer homes in the spring of 2008. It was the first in a wave of modern fully electric cars to reach the market after a number of high-profile failures in the 1990s left the segment for dead. However, it wasn't until 2011 that plug-in electric vehicles (those that run exclusively on a battery charge) began to take off. Sales of these battery-electric vehicles, as recorded by the Electric Drive Transportation Association, leapt from just 19 in 2010 to more than 10,000 in 2011, and then to nearly 53,000 in 2012. Thus far, more than 32,000 have sold through the first five months of the year, for a cumulative total of over 95,000 in three and a half years.

Hot Small Cap Stocks To Watch For 2015: DryShips Inc (DRYS)

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocean Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.

As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of four Aframax and one Suezmax tankers.

The Company�� drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk vessels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.

Drybulk Operations

The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.

Offshore Drilling Operations

In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko Cote d��voire Company (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).

The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShips�� wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryShips also has contracts to provide offshore drilling services and drilling units.

Tanker Operations

The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Equities Trading DOWN
    Shares of DryShips (NASDAQ: DRYS) were down 8.51 percent to $4.30 after the company announced the resumption of at the $200 million market equity offering.

  • [By Mani]

    [Related -DryShips Inc. (DRYS) Q3 Earnings Preview: What To Expect?]

    Since weakness does not represent a change to improving industry fundamentals, investors can use the recent sell-off as an opportunity to accumulate shares of well capitalized companies with exposure to the dry bulk market.

  • [By John Del, Vecchio,]

    Shipping services are all fairly standard: The materials are loaded, shipped, and unloaded. Therefore it is difficult for a company to differentiate itself based on quality of service, so other avenues such as rate competitiveness and cost efficiency become big factors in a company's success. A great example of a company doing just this is DryShips (NASDAQ: DRYS  ) .

  • [By Dan Caplinger]

    As a result, shippers have reversed course on their shipbuilding prospects. DryShips (NASDAQ: DRYS  ) ended up having to pay $21.4 million in order to get rid of two tanker-ships that were under construction, concluding that it was worth it to avoid having to pay the costs of maintenance and upkeep in a weak environment. Safe Bulkers CFO Konstantinos Adamopoulos said in March that he expected a net capacity increase of just 35 million deadweight tonnes for the industry, well below the 100 million that the current schedule of industry vessel completions would suggest.

Best Transportation Stocks To Own Right Now: CSX Corporation (CSX)

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. The company offers traditional rail service, and the transport of intermodal containers and trailers. It transports crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer, agricultural, automotive, paper, and chemical products; and utility, industrial, and export coal to electricity-generating power plants, steel manufacturers, industrial plants, and deep-water port facilities. The company also provides intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States, as well as performs drayage services and trucking dispatch operations. In addition, it operates distribution centers and storage locations; connects non-rail served customers to the benefits of rail by transferring products, such as ethanol and minerals, from rail to trucks; engages in the real estate sale, leasing, acquisition, and management and development activities. CSX Corporation operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as operates approximately 4,000 locomotives. It also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

Advisors' Opinion:
  • [By Dan Caplinger]

    Recently, we've seen the railroad industry adapt to changing conditions, as old mainstays like coal shipments have given way to poor pricing environments and demanded reactions from railroads to keep volumes up. Earlier today, CSX (NYSE: CSX  ) said that it believes that the trend toward increased rail transport of crude oil from hard to reach areas like the Bakken is likely to continue, even with domestic crude prices getting more expensive compared to world oil prices and even in light of a recent train derailment in Quebec, which involved a crude-oil explosion. In its quarterly report Tuesday night, CSX posted reasonable gains of about 4.5% in net income on a 2% revenue jump, beating expectations but reining in any exuberance about its potential for accelerating earnings growth.

  • [By Lauren Pollock]

    CSX Corp.'s(CSX) fourth-quarter profit fell 3.8% as expenses climbed, masking a jump in volume boosted by strong shipments of chemicals, autos and agricultural products. Shares dropped 4.9% to $27.80 premarket.

  • [By Selena Maranjian]

    The biggest new holdings are Coinstar�and Vishay Intertechnology. Other new holdings of interest include the railroad company CSX (NYSE: CSX  ) , which operates more than 21,000 miles of track and is yielding 2.3%. It has been hurt by softness in demand for coal (in part due to low natural gas prices), but coal is likely to remain in demand internationally, and coal exports have been increasing. CSX is geographically well positioned to benefit from such exports, with its access to Eastern and Gulf Coast ports. Its first quarter reflected growth in revenue and earnings.

  • [By , DividendChannel.com]

    CSX Corp. (CSX) has been named as the ”Top Dividend Stock of the Dow Transports”, according to Dividend Channel, which published its most recent ”DividendRank” report.

Best Transportation Stocks To Own Right Now: CAI International Inc (CAP)

CAI International, Inc., incorporated on January 30, 2007, is a equipment leasing and management company, operating primarily in the international intermodal marine cargo container leasing business. The Company also owns a fleet of railcars, which it leases in North America. The Company operates in two segments: equipment leasing and equipment management. The equipment leasing segment specializes primarily in the ownership and leasing of intermodal containers, while the equipment management segment manages equipment for third-party investors. The Company leases its equipment principally to international container shipping lines located throughout the world. The Company sells equipment primarily to third-party investor groups and provides management services to those investors in return for a management fee.

The equipment leasing segment derives its revenue primarily from the ownership and leasing of containers to container shipping lines and freight forwarders. The equipment management segment derives its revenue from management fees earned from portfolios of equipment and associated leases which are managed on behalf of third-party investors. As of March 31, 2013, our fleet consisted of 1,091,117 twenty-foot equivalent units (TEUs) of containers and 1,453 railcars.

Advisors' Opinion:
  • [By Joseph Hogue]

    Because of management's missteps, the company is one of the most hated in the space. Investors have borrowed and sold short 2.3 million shares, amounting to almost 11% of the shares available for trading. That compares with short interest of just 3.9% in closest peer CAI International (NYSE: CAP).

  • [By Sarah Jones]

    SAP AG (SAP) climbed 1.2 percent to 57.36 euros and Cap Gemini SA (CAP) gained 1.8 percent to 39.95 euros as peer Infosys Ltd. surged the most in six months in Mumbai trading after first-quarter profit rose and the company�� sales forecast in dollar terms beat analyst estimates.

  • [By CRWE]

    CAI International, Inc. (NYSE:CAP), a leading lessor of intermodal container, reported that its Senior Vice President and Chief Financial Officer, Timothy Page, is scheduled to present at the Dahlman Rose Global Transportation Conference in New York on Thursday, September 6, 2012 at 12:20 p.m. ET.

Best Transportation Stocks To Own Right Now: 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 Robert Rapier]

    Rounding out the top five were�Hi-Crush Partners�(NYSE: HCLP), another supplier of fracking sand (+71 percent),�EQT Midstream Partners�(NYSE: EQM), a midstream provider in the Appalachian Basin (+66.5 percent), and�Valero Energy Partners�(NYSE:VLP) (+61.5 percent), which consists of midstream assets dropped down from the refiner�Valero Energy�(NYSE:VLO).

  • [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.

No comments:

Post a Comment