Annaly Capital (NYSE: NLY ) reported first-quarter earnings�yesterday afternoon, and the results are mixed, to say the least. While the megatrust beat analysts' earnings per share estimates by $0.13, the $0.47 EPS number edged up from the fourth quarter's $0.46 by only one penny and is still far below the year-ago figure of $0.54.
But the real meat of the report lies in the all-important net interest spread, upon which mortgage REITs make their money. For Annaly, it was a disappointing 91 basis points, down four basis points from the last quarter -- and a jaw-dropping 80 basis points year over year.
A common affliction for mREITs these days
As mortgage REIT fans well know, contracting spreads have been a real bugaboo for the industry lately as the Federal Reserve continues on with its bond-buying spree. For pure-agency players like Annaly, American Capital Agency (NASDAQ: AGNC ) , and CYS Investments (NYSE: CYS ) , the effects have been especially harrowing, since the Fed buys only securities guaranteed by Fannie and Freddie in its effort to prop up the economy and goose employment.
10 Best Biotech Stocks To Invest In Right Now: NRG Energy Inc.(NRG)
NRG Energy, Inc., together with its subsidiaries, operates as a wholesale power generation company. The company engages in the ownership, development, construction, and operation of power generation facilities. It also involves in the transacting in and trading of fuel and transportation services; the trading of energy, capacity, and related products in the United States and internationally; and the supply of electricity, energy services, and cleaner energy and carbon offset products to retail electricity customers in deregulated markets. The company operates natural gas- fired, coal- fired, oil-fired, nuclear, solar, and wind power plants. As of December 31, 2010, it had power generation portfolio of 193 operating fossil fuel and nuclear generation units with an aggregate generation capacity of approximately 24,570 megawatt (MW), as well as ownership interests in renewable facilities with an aggregate generation capacity of 470 MW. The company portfolio also includes appr oximately 24,035 MW generation capacity in the United States, and 1,005 MW generation capacity in Australia and Germany. In addition, it has a district energy business with steam and chilled water capacity of approximately 1,140 megawatts thermal equivalent. NRG Energy, Inc. was founded in 1989 and is headquartered in Princeton, New Jersey.
Advisors' Opinion:- [By Aaron Levitt]
For those investors looking to take the plunge today, utility NRG (NRG) was the first firm to actually do a YieldCo transaction. NRG Yield (NYLD) holds three natural gas plants, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities. All in all, that’s about 1,324 megawatts worth of generation capacity.
- [By Richard Stavros]
The only company that comes close to Dominion is NRG Energy Inc (NYSE: NRG), a firm that presumably would have a higher multiple as it is one of the largest US independent power producers, has substantial unregulated revenue, and is on the cutting edge of implementing new renewable technologies.
- [By Sean Williams]
Sticking with the energy sector, NRG Energy (NYSE: NRG ) jumped 4.2% after filing its IPO plans for the spinoff of its NRG Yield subsidiary, which will hold stakes in natural gas, wind, and solar projects. NRG has high hopes for the spinoff which could raise the company up to $411 million when it prices 19.6 million shares between $19 and $21 per share. Spinoffs like these are becoming more common, as transparency in the complex energy sector is proving helpful to investors who are looking to better understand how these companies make their living.
- [By Travis Hoium]
But the nuclear renaissance some predicted won't bring much more capacity to the industry. NRG Energy (NYSE: NRG ) gave up on a $10 billion plant last year and took a $481 million�financial hit in the process. UniStar's request for a license to operate a third reactor at Calvert Cliffs, Md., was denied this year and that project appears to be all but dead. Warren Buffett's MidAmerican Energy also abandoned a nuclear power plant proposal this year, so momentum for the industry isn't strong.
Top Penny Companies To Own For 2014: Cleco Corporation (CNL)
Cleco Corporation, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Louisiana. As of December 31, 2009, it had ownership interest in 3 steam electric generating stations and 1 gas turbine with a combined name plate capacity of 1,359 megawatts, and a combined electric net generating capacity of 1,318 megawatts. The company served approximately 277,000 customers in 107 communities in the central and southeastern Louisiana. It also owns and operates a natural gas-fired merchant power plant, as well as has a 50% interest in another natural gas-fired merchant power plant located in Louisiana. Cleco Corporation was founded in 1934 and is based in Pineville, Louisiana.
Advisors' Opinion:- [By Garrett Cook]
Utilities sector was the top gainer in the US market on Thursday. Top gainers in the sector included Cleco (NYSE: CNL), Korea Electric Power (NYSE: KEP), and Regency Energy Partners LP (NYSE: RGP).
- [By David Dittman]
Answer: I like NextEra Energy, which has significant renewables exposure and operates in a region with solid economic fundamentals. I also like smaller utes that operate in smaller footprints with solid long-term fundamentals, including Cleco (NYSE: CNL), Pinnacle West, Vectren (NYSE: VVC) and SCANA (NYSE: SCG).
- [By Marc Bastow]
Pineville, Louisiana-based utility holding company CLECO (CNL) raised its quarterly dividend 10.3% to 40 cents per share payable on May 15. No record or ex-dividend date for the payment was released.
CNL Dividend Yield: 3.13% - [By Garrett Cook]
Utilities sector was the top gainer in the US market on Thursday. Top gainers in the sector included Cleco (NYSE: CNL), Korea Electric Power (NYSE: KEP), and Regency Energy Partners LP (NYSE: RGP).
Top Penny Companies To Own For 2014: Micron Technology Inc.(MU)
Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM. The company also offers NAND flash memory products, which are electrically re-writeable and non-volatile semiconductor devices that retain content when power is turned off. In addition, it provides NOR flash memory products that are electrically re-writeable and non-volatile semiconductor memory devices; phase change memory products; and image sensor products. Micron Technology?s products are used in a range of electronic applications, including personal computers, workstations, network servers, mobile phones, flash memory cards, USB storage devices, digital still c ameras, MP3/4 players, and in automotive applications. It sells its products to original equipment manufacturers and retailers through internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel. The company was founded in 1978 and is headquartered in Boise, Idaho.
Advisors' Opinion:- [By Rex Crum]
With Netflix leading the way, most of the rest of the tech sector also rose. Gains came from Facebook Inc. (FB) , Pandora Media Inc. (P) , Microsoft Corp. (MSFT) �and Micron Technology Inc. (MU) .
Top Penny Companies To Own For 2014: The Hackett Group Inc.(HCKT)
The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in the United States and western Europe. The company offers executive advisory programs, benchmarking, business transformation, and technology consulting services, as well as shared services, offshoring, and outsourcing advice. Its executive advisory programs consists of advisor inquiry, an inquiry service used by clients for access to fact-based advice on proven approaches and methods to increase the effectiveness of selling, general, and administrative processes (SG&A); best practice research, a research that provides insights into the proven approaches in use at organizations; peer interaction program comprising member-led Webcasts, annual Best Practice Conferences, annual Member Forums, membership performance surveys, and client-submitted content; and best practice intelligence center, an online, searchable repository of practices, performance metrics, conference presentat ions, and associated research. The company?s bench marking services conduct studies in the areas of SG&A, finance, human resources, information technology, procurement, enterprise performance management, shared service centers, and working capital management. These services are used by clients to establish priorities, generate organizational consensus, align compensation to establish performance goals, and develop the required business case for business and technology investments. Its business transformation programs help clients to develop coordinated strategy for achieving performance improvements across the enterprise; and Hackett Technology Solutions help clients choose and deploy the software applications that meet their needs and objectives. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in January 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.
Advisors' Opinion:- [By ValueArtifex]
One such situation currently in the process of unfolding this month is a Dutch Tender by The Hackett Group (HCKT). I will briefly discuss the underlying business, what exactly a Dutch Auction (or in this case, a Tender) is, what options investors have when approaching this situation and how it could play out.
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