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CH Robinson Worldwide -- >>> 5 Value Dividend Stocks with Wide Moats
By Meena Krishnamsetty
May 1, 2013
http://beta.fool.com/insidermonkey/2013/05/01/5-wide-moat-value-dividend-stocks/32454/?source=eogyholnk0000001
Warren Buffett has been one of the most prominent investors in companies with wide moats. He often referred to his investment targets as companies that possess “long-term competitive advantage in a stable industry” or, in other words, “an enduring ‘moat’ that protects excellent returns on invested capital.” Wide moats and excellent ROIC, likely the best measure of economic profitability, generally go hand-in-hand. What’s more, over longer time horizons, wide moats also seem to go hand-in-hand with solid total returns.
For illustration, the Morningstar Wide Moat Focus Index, consisting of 20 wide-moat stocks that Morningstar considers “best value,” has outperformed the broader market over both three- and five-year periods. Its annualized excess return over the five-year period was more than double the U.S. market’s return.
This is just one of the few strategies with market-beating potential available to investors today.
Wide-moat stocks can be good investments, particularly if they boast value attributes. Based on the aforementioned Morningstar’s wide-moat stocks with compelling value characteristics, here is a closer look at five such stocks that pay dividend yields above 2.0%.
Let’s get started
Exelon (NYSE: EXC), the largest U.S. nuclear power company, is a wide-moat company in the unregulated electricity business. This company’s yields ballooned due to speculations of a dividend cut amid falling profitability. The speculation materialized back in February, when the company slashed its dividend by 41% in order to preserve its debt rating and to free up some $700 million annually for investments in generation projects that will provide quick returns. Exelon’s fortunes are tied to unregulated electricity markets, in which electricity prices have slumped in recent years in response to falling natural gas prices amid oversupply driven by the shale gas boom.
The stock is thus also a play on natural gas, whose prices have started to recover this month, buoying Exelon along. Exelon currently yields 3.4% on a payout ratio of 50% of the current-year EPS estimate. The dividend payout ratio is expected to rise this year and next as analysts forecast lower EPS in both years. Most of the bad news is priced into Exelon’s valuation, so the stock looks fairly priced at 14.5 times forward earnings, below its respective industry’s 16.5. Better natural gas pricing, which is possible but unlikely in the medium term, could lead the stock price higher. In terms of hedge fund interest, Citadel’s Ken Griffin was bullish about this stock last quarter.
The Western Union (NYSE: WU), a money transfer company, is a leader in its industry with strong competitive advantages due to its vast scale of operations that dwarfs those of its competitors. On average, the company processes 28 transactions per second, servicing some 70 million senders and receivers as well as 100,000 business-to-business customers. Its leading position in the industry is preserved through a regulatory environment that creates significant barriers to entry. Western Union is currently facing some headwinds, as it forecasts lower revenues this year, which should lead to an EPS decline of up to 19.5% from the year earlier.
Still, Western Union sees 2013 as a transition year in which it will “adjust its value proposition in consumer money transfer and invest for future growth.” Western Union’s revenues and profitability are likely to recover in 2014 and 2015, driven by a 7% growth in cross-border remittances and faster growth in the digital formats. Trading at 10.6 times forward earnings, below its five-year average, and boasting a dividend yield of 3.5%, Western Union is an attractive value and income play. The company’s payout ratio is low at 36% of the current-year EPS estimate. Western Union has had an excellent record of dividend growth over the past five years, increasing dividends at an average CAGR of 62%. Last quarter, the stock was popular with Chieftain Capital’s John Shapiro.
Who’s the best of the rest?
C.H. Robinson Worldwide (NASDAQ: CHRW), the world's largest third-party logistics provider, is another company with a wide moat in its industry due to its scale and operating network. The company pays a dividend yield of 2.4% on a payout ratio of 46% of the current-year EPS estimate. Its five-year annualized dividend growth rate is 9.6%. The company’s long-term CAGR target for net revenues, operating income, and EPS has been 15% since the company’s establishment. C.H. Robinson’s performance over the past decade has mostly matched or exceeded these targets, with net revenues, operating income, and diluted EPS growing at an average CAGR of 13.5%, 17.1%, and 18.2%, respectively.
While analysts are generally upbeat about C.H. Robinson Worldwide’s prospects, their forecasted EPS CAGR of 12.4% annually for the next five years falls short of the company’s long-term target. Still, an improving economy bodes well for C.H. Robinson Worldwide. Moreover, acquisitions, more outsourcing of logistics needs, and market share expansion will bolster the company’s financial performance in the future. Based on a forward P/E of 19.8, the stock is priced above its industry, and looks pricey.
However, it trades at the lower end of its price-to-book range over the past decade. Last quarter, C.H. Robinson Worldwide was William Gray’s new pick (see Orbis Investment Management’s top picks).
General Dynamics (NYSE: GD), an aerospace and defense company, holds the dominant position in shipbuilding and marine systems and combat vehicles. The company is one of legendary investor Warren Buffett’s major holdings. What makes General Dynamics attractive is its strong profitability, solid balance sheet, robust cash flows, and attractive valuation. Still, the company operates in a challenging macro environment characterized by notable uncertainty amidst the process of fiscal sequestration. A few months ago, the company reported a $2.1 billion quarterly loss due to write-downs. Moreover, due to planned defense budget cuts and the effect of sequestration, the company issued weak 2013 profit guidance, projecting EPS expansion of up to 3.4% this year.
Analysts are more upbeat about the company’s long-term position, forecasting the EPS CAGR of 7.1% for the next five years. General Dynamics’s total backlog at the end of 2012 was $51.3 billion. Particularly strong have been orders for marine systems, including those for the development of the U.S. Navy’s next-generation submarines. The company’s long-term prospects are intrinsically tied to the U.S. military, which, despite the efforts to reduce the defense budget, will face pressures to modernize, keeping outlays at high levels. General Dynamics is valued attractively, boasting a free cash flow yield of 5.5%, forward P/E of 10.3 (below its industry’s 11.8), and below-industry price-to-book of 2.2.
Intel (NASDAQ: INTC), the world’s largest chipmaker, ranks 6th on the Forbes World’s Most Powerful Brands list. Intel operates in a cyclical industry and exerts dominance in the PC sector that is on a secular decline. IT research firm IDC recently announced that global PC fell 13.9% year-over-year in the first quarter, which marked “the worst quarter since IDC began tracking the PC market quarterly in 1994,” according to IDC. Still, Intel expects its sales to grow in the low single digits this year. The declining PC sector is pushing for a major transformational shift at Intel. The company is slowly transitioning toward the mobile device market.
Moreover, it is moving into semiconductor foundry business, as indicated by the recent deal with Altera for the future manufacturing of Altera’s FPGAs based on Intel’s 14nm tri-gate transistor technology. Speculations surfaced in early March about possible discussions between Intel and Apple regarding a new foundry deal. These deals bode well for its future growth prospects. Still, Intel is a great value and income play, boasting a forward P/E of 11.6 and a dividend yield of 4.3%. Intel has a payout ratio of 47% and five-year annualized dividend growth of 13.7%. Last quarter, value hedge fund First Eagle Investment Management (check out its top holdings) was bullish about Intel.
An ‘ROIC’ of a conclusion
Among the stocks listed above, C. H. Robinson Worldwide has the highest ROIC, at 34.4%. It is followed by Western Union and Intel, which boast ROICs of 22.5% and 18.0%, respectively. General Dynamics and Exelon have ROICs of 11.6% and 7.2%, respectively. Each is an impressive investment moving forward, as companies with wide-moats, good value, and solid income streams don’t come along too often. We’d pay attention to the players mentioned here.
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Railroad Sector -- >>> Which Is the Best of the Railroads?
By Robert Ciura
May 3, 2013
http://beta.fool.com/rciura/2013/05/03/which-is-the-best-of-the-railroads/33181/?source=eogyholnk0000001
Railroads are often seen as a bellwether for the broader economy because of the amount of retail and manufactured goods they transport across the nation. Norfolk Southern (NYSE: NSC) operates approximately 20,000 route miles in 22 states and serves every major container port in the eastern United States. CSX (NYSE: CSX) serves major markets in the eastern United States and has access to over 70 ocean, river and lake port terminals along the Atlantic and Gulf Coasts, the Mississippi River, the Great Lakes and the St. Lawrence Seaway. Major competitor Union Pacific (NYSE: UNP) operates a rail network including 31,000 route miles.
The railroad industry counts Warren Buffett, one of the world’s most famous investors of all time, as a fan. Buffett is a well-known railroad enthusiast and proved it when his Berkshire Hathaway bought Burlington Northern Santa Fe, then the nation’s second-largest railroad, for $34 billion in 2009. Should you follow his advice and add one of the nation’s biggest railroads to your portfolio?
The railroads keep chugging along
Norfolk Southern admirably navigated a tough environment last year, reporting 2012 revenue and earnings per share declined 1% year over year. More positively, the company increased its dividend more than 18% last year, and still carries a very comfortable 30% payout ratio.
Thankfully, Norfolk Southern is off to a solid start in 2013. The company reported 15% growth in diluted earnings per share during the first three months of the year thanks to 3% growth in shipment volumes.
CSX struggled during fiscal 2012, as the company was only able to eke out a tiny increase in revenue versus the prior year. In addition, the company reported 7% diluted earnings per share growth for 2012 year over year.
Like Norfolk Southern, CSX kept its head above water last year and fortunately improved measurably during the first quarter. Over the first three months, revenue remained flat, but CSX posted record operating income and earnings per share. In addition, CSX provided investors with a 7% dividend increase.
Union Pacific managed to impressively reverse the pattern of railroads reporting disappointing 2012 results, with last year being the most profitable year in the company’s 150-year history. Union Pacific reported full-year diluted earnings per share of $8.27, an increase of 23% year over year.
Furthermore, Union Pacific’s record results extended into the first quarter of 2013. The company’s diluted earnings per share represented another record, growing 13% year over year. Also, operating revenue grew 3%, also a new record.
The bottom line
The railroads serve a vital purpose that the very health of our country depends on. Railroads are more energy-efficient than trucks, since they use much less fuel, and can carry hazardous materials not allowed on highways. It’s true that the last year has not been kind to most of the nation’s biggest railroad companies, due to the sluggish economic recovery in the United States in conjunction with a reduction in coal shipments.
However, it’s worth repeating that the recovery in the U.S., while painfully slow, continues. In addition, the drop in coal shipments should abate somewhat as the rising price of natural gas will make coal more attractive to domestic utility customers.
Specifically, Union Pacific sports higher growth than its competitors but investors are paying a higher valuation for this growth. Union Pacific trades at a trailing price-to-earnings ratio in excess of 17, compared with P/E ratios of 13 and 14 for CSX and Norfolk Southern, respectively.
The Foolish takeaway here is that the railroads are well-run businesses that should continue to perform strongly, demonstrated by their recent quarterly results and solid dividend yields between 2% and 3% annualized. All three of these railroads are great businesses that will likely earn shareholders solid returns for many years to come.
With 21,000 miles of track serving two-thirds of the U.S. population, CSX maintains a valuable proprietary asset. Still, this railroad will face difficult obstacles in the years ahead due to a domestic surplus of natural gas and coal’s declining popularity. To help investors better understand how CSX can deal with these challenges, The Motley Fool has released a brand-new premium research report authored by Isaac Pino, Industrials Bureau Chief and transportation expert. Isaac provides an in-depth look at CSX’s competitive advantages, risk areas, and prospects for the future.
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Burlington Northern Santa Fe -- >>> Meet Oil Refiners' New Best Friend: Warren Buffett
By Tyler Crowe
February 4, 2013
http://www.fool.com/investing/general/2013/02/04/meet-oil-refiners-new-best-friendwarren-buffett.aspx
Phillips 66's (NYSE: PSX ) recent earnings release was another example of the fantastic run that oil refining and marketing companies have had these past several quarters. Looking past the numbers, though, there was one issue that the company sees as a potential weakness. For a solution, it looks to be turning to a new friend: Warren Buffett.
Hop on the oil train
Despite the large boom in U.S. oil production, a few parts of Phillips 66's refining operations have what may be considered a feedstock problem. Much of Phillips 66' byway facility in New Jersey has been cracking Brent crude, which is selling at a premium to almost every domestic crude supply. With WTI and Bakken crude spot prices at almost a $20 discount to Brent, these East Coast refiners could seriously improve their margins by moving to domestic feedstocks. The same could be said for West oast refineries as well, because Alaskan North Slope crudes are selling at prices very close to Brent.
One of the best feedstock candidates for these facilities is from the Bakken. Not only is the crude cheap in comparison with imports, but it's also a high-quality crude and doesn't have strong local refinery capacity. There is one small problem with Bakken feedtsocks, though: The infrastructure from the region to the East and West Coast is relatively weak.
Refiners, midstream, and E&P companies have settled on rail for emerging oil plays for the time being, because the speed to bring rail operations online using existing lines is much faster than building new pipeline networks. The two following images highlight how rail infrastructure is much more robust than pipeline networks in emerging oil regions such as North Dakota.
To take advantage of this, both Phillips 66 and Valero (NYSE: VLO ) announced in their recent conference calls that they plan to purchase 2,000 and 1,000 rail cars, respectively. While much of Phillips 66's rail efforts will focus on moving Bakken crude, Valero plans to use rail to also move oil sands away from Alberta.
So where does Warren Buffett fit into this picture? The largest holder and operator of rail lines in the North Dakota region is Burlington Northern Santa Fe, which is a wholly owned subsidiary of Buffett's Berkshire Hathaway (NYSE: BRK-B ) . If any of these companies hopes to run rail cars in the region, they will need to use Burlington Northern's rail lines to make it happen. According to Berkshire's most recent quarterly earnings report, the largest revenue growth for the railroad company has come from increased petroleum shipments. As long as pipeline capacity remains weak in the region, Burlington Northern will see strong growth from petroleum transport.
Rail deliveries aren't the perfect solution, though. Based on Tesoro's (NYSE: TSO ) estimates, it takes about $8 to $9 dollars per barrel to move Bakken crude to its refineries on the West Coast. That's almost double what it takes to transport a barrel of crude via pipeline. It also requires these companies to either construct or expand their rail terminal facilities. Since rail is the only economically viable option right now, though, both refiners and E&P companies will be more than willing to pay the higher price.
Despite the higher costs associated with moving crude via rail, it certainly makes economic sense while spot differentials remain so high and pipeline networks have yet to catch up with production volumes. For the time being, East and West coast refiners such as Phillips 66, Tesoro, and Valero will all use rail as much as possible. While this will be a small gain for these refiners, Burlington Northern could be an even bigger winner. An uptick in rail deliveries could be a strong revenue boost for the company.
This advantage might be rather short-lived, though. Enbridge (NYSE: ENB ) has plans to bring a 125,000 barrel-per-day pipeline online that will connect the Bakken with its existing network in the U.S. and Canada. Enbridge anticipates the pipeline to come online sometime in early 2013. Current production in the Bakken is about 500,000 barrels per day and is growing, so there is still a lot of takeaway capacity needed for the region. But it shouldn't be surprising if we see other midstream pipeline projects coming up.
Even though Burlington Northern is one of the largest rail companies in the United States, it's only one part of Berkshire's massive holdings. The entire Berkshire universe is complex and can be difficult to navigate.
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Railroads -- >>> Zacks Bull and Bear of the Day
Highlights: ResMed, Golar LNG, Kansas City Southern, CSX and Norfolk Southern
By Zacks Equity Research
Jan 30, 2013
http://finance.yahoo.com/news/zacks-bull-bear-day-highlights-131140520.html
Chicago, IL – January 30, 2013 – Zacks Equity Research highlights ResMed Inc. (RMD) as the Bull of the Day and Golar LNG Limited (GLNG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Kansas City Southern (KSU), CSX Corporation (CSX) and Norfolk Southern Corp. (NSC).
Kansas City Southern Hikes Dividend
One of the leading and oldest freight railroads, Kansas City Southern (KSU) has increased its dividend by 10% to 21.5 cents per share on its common stock. The increased dividend is payable on Apr 3, to stockholders of record on Mar 11.
Moreover, the company also announced a dividend payment of 25 cents on its preferred stock. This dividend will be paid on Apr 2, to the preferred stockholders of record on Mar 11.
Historically, the company made dividend payments only on its preferred stock until last year, when it initiated dividends on its common stock. On Apr 27, 2012, the company paid a dividend payment of 19.5 cents.
We believe the increase in dividend payments on the company’s common stock stems from its stellar earnings performance and encouraging outlook for the rest of the current year. In fourth quarter 2012, the company reported an earnings growth of 19.5% from year-ago results driven by higher freight rates and volumes. For the full year, the growth rate was 14.3% year over year.
Similar to the other railroads like CSX Corporation (CSX) and Norfolk Southern Corp. (NSC), Kansas City Southern has exercised a strong pricing discretion. This has led to average pricing gains of nearly 4–5% per annum, and a subsequent double-digit profit margin.
Apart from strong pricing fundamentals, we believe an improvement in business volumes and effective cost-control measures remain the primary catalysts for the company’s growth. Additionally, improving cross-border traffic between the U.S. and Mexico and emerging business opportunities in the Mexican market supported by its cheap labor cost will boost the company’s bottom line.
Over the past year, Kansas City Southern has significantly benefited from positive rail industry fundamentals supported by truckload conversion to rail. Additionally, several cost control initiatives have led to operating ratio improvement.
As a result, management expects to post consistent operating ratio improvement, taking its U.S. operating ratio down to approximately 78.0% over the next 3–5 years. Despite the ongoing economic uncertainty, management is still committed to achieve the same goals that include an operating ratio in the low 70s over the long term.
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Arkansas Best -- >>> Should You Invest In Starbucks Or Arkansas Best?
November 02, 2012
http://www.investopedia.com/stock-analysis/2012/should-you-invest-in-starbucks-or-arkansas-best-sbux-abfs-f-gm1102.aspx?partner=YahooSA#axzz2EKWyY88t
Earnings season continued November 1 with Arkansas Best (Nasdaq:ABFS) announcing its third quarter results before the market opened Thursday, and Starbucks (Nasdaq:SBUX) delivered its fourth quarter and year-end numbers after the market closed. Analyzing the reports of two completely different businesses, and then comparing them to decide which stock is the better investment, isn't an easy task. Nonetheless, here is a rundown of the pros and cons of each company's results.
Arkansas Best - Pros
Operating revenues grew 13% to $577.5 million, beating the consensus estimate by $12.24 million. Its non-asset-based segments include: truck brokerage, roadside assistance for commercial vehicles, logistics and expedited freight services, and household moving services. Thanks to the June purchase of Panther Expedited Services from private equity firm Fenway Partners for $180 million, the four segments were able to generate $130.3 million in revenue in Q for a 119% increase year-over-year.
More importantly, the asset-light part of its business accounted for 23% of its overall revenue and 31% of operating income. In terms of operating income growth, its non-asset-based businesses saw a 15.3% increase from the same quarter last year. While there wasn't a whole lot of good news to report in its freight transportation division (79% of revenue), it did manage to increase the billed revenue per shipment by 3.7% to $393.47.
Arkansas Best - Cons
It's important to keep in mind that while the third quarter wasn't pretty, it still managed to deliver a profit, which is all that really matters. They can't all be home runs. ABF Freight Systems saw its business levels decline by 1.4% in the third quarter to 12,463 tons per day. However, due to price increases throughout most of 2011 and into the first quarter of 2012, which resulted in higher billed revenue per shipment, Arkansas Best's biggest segment saw revenues decline by just $3.3 million. Unfortunately, due to its ongoing high cost operating structure, ABF Freight Systems' operating expenses increased over 200 basis points (bps) to 97.9% of revenue. Negotiations on a new labor contract with the Teamsters begin December 18.
Management is hopeful it can negotiate a contract that allows it to move forward, profitably creating new jobs along the way. How likely is the union to budge? If recent deals in Canada with Ford (NYSE:F) and General Motors (NYSE:GM) are any indication, I believe Arkansas Best should be able to hammer out an equitable compromise with its employees. Until then, investors can expect its reduced profitability to continue. In the third quarter, its overall operating profits declined 42% to $12.2 million and ABF Freight Systems by 52% to $8.4 million. Therefore, it's no wonder that its stock is trading at its lowest level since 2000.
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Tesla, Ecotality -- >>> New Tesla, GM electric cars juice prospects for microcap Ecotality
November 30, 2012
http://blogs.marketwatch.com/thetell/2012/11/30/new-tesla-gm-electric-cars-juice-prospects-for-microcap-ecotality/
Sure the roll-out of electric vehicles in the U.S. has hit some rough spots, with General Motors GM-1.02% falling short of sales goals for the Chevrolet Volt.
Antenna Group Blink charging station by Ecotality.
But the emerging car segment continues to gain momentum.
Tesla’s Motors Inc. TSLA+1.99% won the coveted Motor Trend Car of the Year for its new Model S sedan, as the Palo Alto, Calif., company gains traction as one of the few automotive start-ups in recent American history.
Wise from cost competition from the Nissan Leaf all-electric car, GM has now set plans to roll out the Chevrolet Spark, priced below $25,000 including tax credits.
And several new models are coming out from the likes of Honda, Ford and Toyota.
All this adds up to better prospects for San Francisco-based Ecotality, which makes car charging stations under the Blink brand name.
The company saw its third-quarter sales rise 52% to $14.4 million as it works with the Department of Energy to deploy charging stations at Kohl’s, McDonald’s, and other parking spots around the country.
In an interview, Ecotality CEO Ravi Brar said people getting their cars charged for free at public Blink stations in participating parking lots tend to shop for a longer time. Retailers like that.
While Ecotality is not profitable yet, Brar said it could start to turn the corner next year as more electric cars hit American roads.
Brar added that gasoline prices — on track to set an annual average record in 2012 — will continue to go up, making electric cars more appealing.
“There are always going to be bumps in the road when there’s a sea change in technology,” Brar said. “I don’t think anything is going to happen in straight line. But right now we’re seeing a lot of positives.”
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Union Pacific -- >>> Railroads Cash in by Picking up Pipeline's Slack
By Aimee Duffy
November 14, 2012
http://www.fool.com/investing/general/2012/11/14/railroads-cash-in-by-picking-up-pipelines-slack.aspx
Two years ago, Canadian National Railway (NYSE: CNI ) was shipping approximately zero railcars full of oil or petroleum products. Those days are long gone, however, and through the first nine months of this year, petroleum and chemicals shipments accounted for 16% of the company's revenue. It's quite the turnaround, and highlights just how important oil has become to railroads.
Riding the rails
Over the last year, oil has made itself at home on North American freight trains, and crude shipments have increased by about 360,000 barrels per day. According to the Association of American Railroads, petroleum and petroleum product shipments reached 20,906 carloads in October, a 54.5% increase year over year.
Canadian National isn't the only winner, obviously. American railroad giant Union Pacific (NYSE: UNP ) is doing its part, too. The company experienced a 15% pop in third-quarter earnings because of price increases and an uptick in shipments of petroleum products and automobiles.
Union Pacific is happily experiencing the effects of America's oil and gas boom from all angles, shipping necessary materials to drilling sites, and then turning around and carting oil back out to markets. The company's petroleum products shipments increased 95% in the third quarter.
Oil wins, too
As it turns out, railroads are just as important to oil as oil has become to railroads. Producers would be struggling big time if it wasn't for access to railcars and terminals. Though millions of miles of pipeline crisscross our nation, they are highly concentrated in regions that have historically generated much of this nation's oil production. There are not, for example, pipelines all over North Dakota in the same way that they are all over Texas. What North Dakota does have, however, are railroads.
Continental Resources (NYSE: CLR ) , the largest leaseholder in North Dakota's Bakken Shale, is shipping 65% of its oil out of the play via rail. That's over 40,000 barrels per day! Without question, Continental has been saved by rail in the short term. The company's CFO, John Hart, credits rail for solving the immediate needs of oil producers in the Bakken by allowing them to reach previously unreachable markets on the West and East Coasts, but maintains that there is still a need for pipelines in the region.
Few would argue that point, as oil production in the Bakken is expected to climb from over 600,000 barrels per day right now, to potentially more than 1.5-million barrels per day in the coming years. Current pipeline capacity in the region is tight, and while additional capacity is expected to come online between the end of this year and next, it is not ready yet, and rail is expected to be a meaningful alternative in the near-term.
Fear of commitment
There is a chance that rail will continue to be the transport of choice among some oil producers even if pipeline capacity ramps up in the Bakken. During a conference call regarding its third-quarter earnings, Plains All American (NYSE: PAA ) CEO Greg Armstrong agreed that the preferred method of oil transport is via pipeline, but he also raised a valid point about the benefits of shipping via rail cars.
The economics of the Bakken, combined with its distance from markets, make producers wary of signing 10-year shipping contracts with pipeline companies; bearing in mind it takes years to bring pipeline projects to fruition. Therefore railroads, according to Armstrong, will remain crucial to Bakken producers, perhaps more so than the other American oil plays.
After all, transportation via rail does not require long-term commitments. Rail shipments are also able to reach markets faster than pumping crude through a pipeline. Despite higher costs, there is greater flexibility shipping via rail right now, and it is an advantage that may not erode as quickly as some think.
One thing that really stands out about Plains All American is the variety of transportation assets the company possesses. Plains operates not just pipelines, but trucks, trains, and barges as well. The partnership plans to have 6,000 railcars in service by the end of next year, shipping oil and natural gas liquids all over the country. It is definitely a company worth considering given the state of the American energy scene right now.
Foolish takeaway
The growth in American energy production presents a variety of ways for investors to cash in. Obviously producers like Continental Resources benefit, but so do railroads and midstream companies that are positioned to take advantage.
The surge in oil and natural gas production from hydraulic fracturing and horizontal drilling is creating massive bottlenecks in takeaway capacity. However, this problem for producers creates a massive and immensely profitable opportunity for midstream companies. Energy Transfer Partners helps alleviate the gluts in supply with 23,500 miles of transformational pipelines.
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Dorman Products -
>>> Dorman Products, Inc. (DORM) supplies automotive replacement parts, fasteners, and service line products primarily for the automotive aftermarket. The company offers approximately 128,000 products comprising original equipment dealer parts, which include intake manifolds, exhaust manifolds, oil cooler lines, window regulators, radiator fan assemblies, power steering pulleys, and harmonic balancers; and replacement parts, such as window handles and switches, door hardware, interior trim parts, headlamp aiming screws and retainer rings, radiator parts, battery hold-down bolts and repair kits, valve train parts, and power steering filler caps. It also provides application specific and general automotive hardware, such as body hardware, general automotive fasteners, oil drain plugs, and wheel hardware; a selection of electrical connectors, wires, tools, testers, and accessories; and a line of home hardware and home organization products designed for retail merchandisers. In addition, the company offers a brake and clutch program; remanufactured automotive replacement parts, such as transfer case modules and instrument clusters; and heavy duty aftermarket parts for class 4-8 heavy vehicles, including coolant tubes, door handles and other body parts, fluid reservoirs, headlights and lighting, hood components, window regulators, and wiper transmissions. It sells its products under the OE Solutions, HELP!, AutoGrade, FirstStop, Conduct-Tite!, Pik-A-Nut, and HD Solutions brand names through automotive aftermarket retailers; national, regional, and local warehouse distributors; specialty markets; and salvage yards in the United States, Mexico, Europe, the Middle East, Asia, and Canada. The company, formerly known as R&B, Inc., was founded in 1978 and is headquartered in Colmar, Pennsylvania. <<<
Name | Symbol | % Assets |
---|---|---|
Tesla Inc | TSLA | 3.30% |
Skyworks Solutions Inc | SWKS | 3.25% |
Ansys Inc | ANSS | 3.09% |
NVIDIA Corp | NVDA | 3.07% |
ON Semiconductor Corp | ON | 3.07% |
Lear Corp | LEA | 3.02% |
Tianneng Power International Ltd | 00819 | 3.01% |
Taiwan Semiconductor Manufacturing Co Ltd ADR | TSM.TW | 2.98% |
Autohome Inc ADR | ATHM | 2.94% |
Volvo AB B | VOLV B | 2.92% |
Apple Inc | AAPL | 3.59% |
NVIDIA Corp | NVDA | 3.57% |
Intel Corp | INTC | 3.35% |
Alphabet Inc A | GOOGL | 3.26% |
Samsung Electronics Co Ltd | 005930.KS | 3.26% |
Toyota Motor Corp | 7203 | 3.22% |
Microsoft Corp | MSFT | 3.06% |
Qualcomm Inc | QCOM | 3.03% |
Cisco Systems Inc | CSCO | 2.43% |
Daimler AG | DAI.DE | 2.08% |
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