Sell-side analysts can be a stubborn lot. Even when a less-favored
company outperforms, it's not uncommon to see follow-up reports
declaring that its outperformance can't continue. When looking at the
large Japanese trading companies, Itochu's (OTCPK:ITOCY) outperformance certainly stands out - the shares are up more than 50% in Japan while rivals Mitsui (OTCPK:MITSY), Marubeni (OTCPK:MARUY), Sumitomo (OTCPK:SSUMY), and Mitsubishi (MSHBY) are up around 20% to 30%.
Itochu's
strong performance doesn't strike me as a fluke. Management has
consciously and deliberately sought to create a balanced collection of
assets, with operations in food and machinery offsetting the volatility
to the commodities operations. With management looking to build its
non-resource operations at a 2-to-1 ratio with the resource operations, I
believe this will continue to benefit the company's stability and
full-cycle returns without overly curtailing the company's upside to
higher commodity prices. Investors must note the significant impact of
currency on these shares (8001.T shares are up 55% over the past year,
while ITOCY is up about 22%), but I believe Itochu's superior returns,
shareholder-focused management, and balanced business could merit
another 15% to 20% in gains from here.
Read the full article here:
The Market Doubts Itochu Will Continue To Outpace Its Rivals
Showing posts with label Sempra. Show all posts
Showing posts with label Sempra. Show all posts
Tuesday, December 10, 2013
Monday, June 27, 2011
Investopedia: Southern Union Now A Hot Property
The world of pipelines, gas gathering and midstream assets is usually a pretty sleepy place that offers a lot more in terms of income than in headlines and excitement. With at least two bidders now fighting for Southern Union (NYSE:SUG), though, this quiet patch of the income world has gotten a lot more interesting. (To learn more about he oil and gas industry, check out Oil And Gas Industry Primer.)
Williams Companies Brings the Cash
While Southern Union and Energy Transfer Equity (NYSE:ETE) had previously come together on a somewhat convoluted merger agreement, at $33 a share (for Southern Union), Williams Companies (NYSE:WMB) has shaken things up with an all-cash bid of its own that values Southern Union at $39 per share. Now let the squabbling via press release begin!
When Energy Transfer Equity made its original offer, it was a reasonable premium to the recent trading price of Southern Union, but still a rather good bargain for ETE. Making matters worse, it was a convoluted offering - Southern Union shareholders would receive Series B units that would yield at least 8.25%, but there was a somewhat complicated decision tree that could result in shareholders eventually getting cash, ETE common, Energy Transfer Partners (NYSE:ETP) common, or continuing to hold those Series B units. Some of these permutations would give SUG shareholders a tax-free acquisition premium.
To continue reading, click here:
http://stocks.investopedia.
Williams Companies Brings the Cash
While Southern Union and Energy Transfer Equity (NYSE:ETE) had previously come together on a somewhat convoluted merger agreement, at $33 a share (for Southern Union), Williams Companies (NYSE:WMB) has shaken things up with an all-cash bid of its own that values Southern Union at $39 per share. Now let the squabbling via press release begin!
When Energy Transfer Equity made its original offer, it was a reasonable premium to the recent trading price of Southern Union, but still a rather good bargain for ETE. Making matters worse, it was a convoluted offering - Southern Union shareholders would receive Series B units that would yield at least 8.25%, but there was a somewhat complicated decision tree that could result in shareholders eventually getting cash, ETE common, Energy Transfer Partners (NYSE:ETP) common, or continuing to hold those Series B units. Some of these permutations would give SUG shareholders a tax-free acquisition premium.
To continue reading, click here:
http://stocks.investopedia.
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