Monday, December 24, 2012
Northeast Utilities System (NYSE: NU)
Northeast
Utilities provides energy delivery services to residential, commercial,
and industrial customers in Connecticut, New Hampshire, and
Massachusetts. The company engages in the purchase, delivery, and sale
of electricity; and owns and operates approximately 1,200 megawatts of
primarily fossil fueled electricity generation assets. It also operates a
natural gas distribution system in Connecticut serving commercial and
industrial customers, as well as retail customers for heating, hot
water, and cooking needs. In addition, the company offers gas
transportation services to commercial and industrial customers, as well
as provides electric transmission services. It serves approximately 3.5
million electric and natural gas customers through 6 regulated
utilities. To review Northeast’s stock, please take a look at the 1-year
chart of NU (Northeast Utilities) below with my added notations:
Nordic American Tankers Limited (NYSE/NAT)
The global economy continues to be stretched thin. As a result, the
demand for certain goods and services is decreasing, and exports are
being hurt. Those countries that were the go-to economies for growth
are producing less, and countries with more disposable incomes are
reining in their spending.
When export numbers become bleak, the international transport business is one of the first industries to suffer. And, some companies aren’t strong enough to weather the storm at all.
Nordic American Tankers Limited (NYSE/NAT) is a tanker company that owns and operates double-hull crude oil tankers. Based in Hamilton, Bermuda, the company’s fleet has grown from three vessels in 2004, to 20 in 2012. The stock trades just above $9.00 and has a book value of $16.94 and average three-month trading volume of 633,000 shares per day. Nordic American Tankers has total liabilities of $250 million and holds almost $86.0 million in cash.
On November 15, 2012, Nordic announced that third-quarter revenue increased 37.5% year-over-year to $15.5 million. The company’s third-quarter loss improved to $23.3 million, or $0.44 per share. In the same prior-year-period, Nordic reported a loss of $37.6 million, or $0.80 per share. (Source: Nordic American Tankers Ltd. press release, “Nordic American Tankers’ 3Q2012 Report; NAT Is Very Well Positioned for a Market Upswing; Dividend Declared; NAT’s Strength Has Become Significantly Enhanced and Is Fully Financed Up to November 2017,” November 15, 2012.)
Why has Nordic American’s stock been reporting ongoing losses? The Baltic Dry Index tracks the price of moving major raw materials by sea. If the index goes down, this means freight charges are in decline—this in turn leads to lower profits.
Since the beginning of year, the Baltic Dry Index has fallen significantly—negatively impacting Nordic American’s profitability.
While revenues may be up, the company continues to be in the red. That said, Nordic American continues to issue quarterly dividends, and has done so for the past 61 consecutive quarters. Since the fall of 1997, the company has provided shareholders with dividends totaling $43.94 per share.
Since the beginning of the year, Nordic American’s stock has lost approximately 17% of its value. Recently, however, a number of interesting technical trends have been developing.
At the end of October, the company’s stock traded for as low as $8.29 and edged a little higher. Since then, the stock has tested this region three separate times—failing to break lower. The last time the company’s share price tested this region, it was on increased volume.
In the last couple of days, the stock price has crossed above its 50-day moving average, and the momentum on the moving average convergence/divergence (MACD) looks to be in favor of the bulls.
Nordic American’s share price has suffered due to global exports slowing, but it’s not alone. What differentiates this stock from other shipping companies is that it continues to be fundamentally strong and provides shareholders with a hefty dividend. The recent price action also makes it much more attractive.
When export numbers become bleak, the international transport business is one of the first industries to suffer. And, some companies aren’t strong enough to weather the storm at all.
Nordic American Tankers Limited (NYSE/NAT) is a tanker company that owns and operates double-hull crude oil tankers. Based in Hamilton, Bermuda, the company’s fleet has grown from three vessels in 2004, to 20 in 2012. The stock trades just above $9.00 and has a book value of $16.94 and average three-month trading volume of 633,000 shares per day. Nordic American Tankers has total liabilities of $250 million and holds almost $86.0 million in cash.
On November 15, 2012, Nordic announced that third-quarter revenue increased 37.5% year-over-year to $15.5 million. The company’s third-quarter loss improved to $23.3 million, or $0.44 per share. In the same prior-year-period, Nordic reported a loss of $37.6 million, or $0.80 per share. (Source: Nordic American Tankers Ltd. press release, “Nordic American Tankers’ 3Q2012 Report; NAT Is Very Well Positioned for a Market Upswing; Dividend Declared; NAT’s Strength Has Become Significantly Enhanced and Is Fully Financed Up to November 2017,” November 15, 2012.)
Why has Nordic American’s stock been reporting ongoing losses? The Baltic Dry Index tracks the price of moving major raw materials by sea. If the index goes down, this means freight charges are in decline—this in turn leads to lower profits.
Since the beginning of year, the Baltic Dry Index has fallen significantly—negatively impacting Nordic American’s profitability.
While revenues may be up, the company continues to be in the red. That said, Nordic American continues to issue quarterly dividends, and has done so for the past 61 consecutive quarters. Since the fall of 1997, the company has provided shareholders with dividends totaling $43.94 per share.
Since the beginning of the year, Nordic American’s stock has lost approximately 17% of its value. Recently, however, a number of interesting technical trends have been developing.
At the end of October, the company’s stock traded for as low as $8.29 and edged a little higher. Since then, the stock has tested this region three separate times—failing to break lower. The last time the company’s share price tested this region, it was on increased volume.
In the last couple of days, the stock price has crossed above its 50-day moving average, and the momentum on the moving average convergence/divergence (MACD) looks to be in favor of the bulls.
Nordic American’s share price has suffered due to global exports slowing, but it’s not alone. What differentiates this stock from other shipping companies is that it continues to be fundamentally strong and provides shareholders with a hefty dividend. The recent price action also makes it much more attractive.
Chart of the Day - Hollyfrontier (HFC)
The "Chart of the Day" is HollyFrontier (HFC), which showed up on
Thursday's Barchart "All-Time High" list. HollyFrontier posted an
all-time Thursday at $47.39 and closed up +2.29%. TrendSpotter has been
long since Nov 12 at $41.37. In recent news on the stock, Oppenheimer on
Tuesday raised its price target on HollyFrontier to $55 a share from
$46 and maintains an "Outperform" rating on the company, citing what it
sees as strong industry fundamentals and the company's commitment to
creating shareholder value through dividends and share repurchases.
HollyFrontier, with a market cap of $9.46 billion, is engaged in
refining petroleum and it produces and markets gasoline, diesel, jet
fuel, asphalt, heavy products and specialty lubricant products.
US Weekly Economic Calendar
| time (et) | report | period | Actual | forecast | previous |
|---|---|---|---|---|---|
| MONDAY, DEC. 24 | |||||
| None scheduled | |||||
| TUESDAY, DEC. 25 | |||||
| Christmas Day None scheduled |
|||||
| WEDNESDAY, DEC. 26 | |||||
| 9 am | Case-Shiller home price index | Oct. | -- | 0.3% nsa | |
| THURSDAY, DEC. 27 | |||||
| 8:30 am | Weekly jobless claims | 12-22 | 360,000 | 361,000 | |
| 10 am | Consumer confidence | Dec. | 70.0 | 73.7 | |
| 10 am | New home sales | Nov. | 379,000 | 368,000 | |
| FRIDAY, DEC. 28 | |||||
| 9:45 am | Chicago PMI | Dec. | 51.0 | 50.4 | |
| 10 am | Pending home sales index | Nov. | -- | 5.2% | |
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