Considering�how difficult the lending environment is for mid-size private companies, it only makes sense to take a hard look at the business development companies (BDCs).
It’s been a catch 22 for the banks. They are awash in cash,� but after getting shell shocked by the recession they aren’t willing to put that cash in the system in the form of new small-business loans as the Fed had intended under its current policy.
Top 5 Services Companies To Own In Right Now: Windstream Corporation(WIN)
Windstream Corporation provides communications and technology solutions in the United States. The company offers various solutions, including IP-based voice and data services, multiprotocol label switching (MPLS) networking, data center and managed services, hosting services, and communications systems to businesses and government agencies. It also provides high-speed Internet, voice, and digital television services to residential customers primarily located in rural areas. The company?s data services include data center and managed hosting, MPLS networking, and dedicated access, as well as high-speed Internet to business customers; integrated solutions consist of multiple voice and data services delivered over an IP connection; voice services comprise local and long distance, call waiting, caller identification, and voicemail; and special access services include point-to-point switching arrangements for voice and data traffic. In addition, it provides wholesale services, which primarily include voice and data services on a wholesale basis to other carriers; usage sensitive services to long distance companies; and other local exchange carriers for access to the network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for the use of its facilities. As of June 30, 2011, the company served approximately 3.3 million access lines, 1.3 million high-speed Internet customers, and operated approximately 60,000 fiber route miles. Windstream Corporation is based in Little Rock, Arkansas.
Advisors' Opinion:- [By Lauren Pollock]
Shares of Cyan slumped 25% to $3.86 premarket after the company drastically cut its fourth-quarter revenue expectations due to a sharp drop in orders from the company’s largest customer, Windstream Holdings Inc.(WIN) Cyan is a provider of software-defined networking and packet-optical platforms for network operators.
- [By Lisa Levin]
Windstream Holdings (NASDAQ: WIN) shares gained 0.43% to touch a new 52-week high of $9.24. Windstream's trailing-twelve-month ROE is 22.79%.
The WhiteWave Foods Company (NYSE: WWAV) surged 1.57% to reach a new 52-week high of $31.07. WhiteWave Foods shares have jumped 61.25% over the past 52 weeks, while the S&P 500 index has gained 14.97% in the same period.
Top Dividend Companies To Own In Right Now: Littelfuse Inc.(LFUS)
Littelfuse, Inc. designs, manufactures, and sells circuit protection devices for use in the automotive, electronic, and electrical markets in the Americas, Europe, and the Asia-Pacific. The company offers electronic circuit protection products, such as fuses and protectors, positive temperature coefficient resettable fuses, varistors, polymer electrostatic discharge suppressors, discrete transient voltage suppression diodes, TVS diode arrays and protection thyristors, gas discharge tubes, and power switching components, as well as fuseholders, blocks, and related accessories under PICO II, and NANO2 SMF, TECCOR, SIDACtor, and Battrax brand names. It offers its electronic circuit protection products for use in wireless telephones, consumer electronics, computers, modems, telecommunications equipment, telephones, data transmission lines, and alarm systems. The company also provides automotive fuses that are used in automobiles, trucks, buses, and off-road equipment to protec t electrical circuits and the wires that supply electrical power to operate lights, heating, air conditioning, radios, windows, and other controls, as well as offers fuses for the protection of electric and hybrid vehicles. It markets its automotive fuse products under ATO, MINI, MAXI, MIDI, MEGA, MasterFuse, JCASE, and CablePro brand names. In addition, Littelfuse manufactures various low-voltage and medium-voltage circuit protection products, such as power fuses that are used in the protection from over-load and short-circuit currents in motor branch circuits, heating and cooling systems, control systems, lighting circuits, and electrical distribution networks to electrical distributors and their customers in the construction, original equipment manufacturers, and industrial maintenance and repair and operating supplies markets. Littelfuse sells its products through direct sales force and manufacturers? representatives. The company was founded in 1927 and is headquartered in Chicago, Illinois.
Advisors' Opinion:- [By Rich Smith]
Littelfuse (NASDAQ: LFUS ) has signed an agreement to acquire Key Safety Systems' Hamlin subsidiary for $145 million in cash, Littelfuse announced Monday.
Top Dividend Companies To Own In Right Now: E.I. du Pont de Nemours and Company(DD)
E. I. du Pont de Nemours and Company operates as a science and technology company worldwide. It operates in seven segments: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals. The Agriculture & Nutrition segment provides hybrid seed corn and soybean seed, herbicides, fungicides, insecticides, value enhanced grains, and soy protein under the Pioneer brand name. The Electronics & Communications segment supplies materials and systems for photovoltaic products, consumer electronics, displays, and advanced printing. The Performance Chemicals segment offers fluorochemicals, fluoropolymers, specialty and industrial chemicals, and white pigments for various markets, such as plastics and coatings, textiles, mining, pulp and paper, water treatment, and healthcare. The Performance Coatings segment supplies high performance liquid and powder coatings for motor vehicle origi nal equipment manufacturers (OEM); the motor vehicle after-market; and general industrial applications, such as such as coatings for heavy equipment, pipes and appliances, and electrical insulation. The Performance Materials segment provides polymers, elastomers, films, parts, and systems and solutions for the automotive OEM and associated after-market industries, as well as electrical, electronics, packaging, construction, oil, photovoltaics, aerospace, chemical processing, and consumer durable goods. The Safety & Protection segment primarily offers nonwovens, aramids, and solid surfaces for the construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, homeland security, and safety consulting industries. The Pharmaceuticals segment represents its interest in the collaboration relating to Cozaar/Hyzaar antihypertensive drugs. The company was founded in 1802 and is headquartered in Wilmington, Dela ware.
Advisors' Opinion:- [By Jim Jubak]
E.I. du Pont de Nemours, hereafter DuPont (DD), is a clear case of addition through subtraction.
After selling its performance coatings unit—which makes paints for cars and other industrial uses—for $4.9 billion in February, and after the planned spin-off of its performance chemicals unit—which makes titanium dioxide pigments used in paint, and paper, Teflon, and fluorochemicals—du Pont will look like a totally different company. - [By Sean Williams]
Shares of chemicals maker DuPont (NYSE: DD ) delivered strong gains for shareholders, rising 5.3% after Trian Fund Management's Nelson Peltz disclosed that he'd amassed a "big stake" in DuPont, according to CNBC. If the name sounds familiar, that'd be because Peltz also owns significant stakes in PepsiCo.�and Mondelez International, and has been pushing PepsiCo. to make a bid for Mondelez to expand its international snack presence. The thinking here is that Peltz, being a proactive fund manager who seeks to unlock value, could have a trick or two up his sleeve to improve DuPont's lagging share price. We'll have to wait to see if that comes to fruition.
- [By Ben Levisohn]
China sunk stocks again today, as credit growth lagged in the world’s second-largest economy lagged economist forecasts. Goldman Sachs (GS), E.I. du Pont de Nemours (DD) and United Technologies (UTX) fell.
- [By Reuters]
Danny Johnston/AP General Mills said it has stopped using genetically modified ingredients in the popular breakfast cereal Cheerios as the U.S. branded foods manufacturer hopes the move will firm up customer loyalty in the face of growing opposition to such additives. Many activists and critics have cited studies showing that genetically modified crops aren't safe for people and animals who consume them. Some activist groups opposing genetically modified food also say the crops create environmental problems by encouraging more use of certain agro chemicals, and consumers should have the right to know what they are buying. However, General Mills (GIS), which also makes Betty Crocker dessert mixes and Yoplait yoghurt, said in a company blog post Thursday that its decision on ingredients wasn't driven by safety concerns or pressure from critics. "It's not about safety. Biotech seeds, also known as genetically modified seeds, have been approved by global food safety agencies and widely used by farmers in global food crops for almost 20 years," the General Mills blog said. The Minneapolis-based company said it has begun using non-genetically modified cornstarch and non-genetically modified sugar in Cheerios, adding that oats, the primary ingredient, is a crop that is not grown from genetically modified seeds. The company hopes that "consumers may embrace" its decision to move away from genetically modified ingredients. In November, a Washington state ballot measure that would have required labeling of foods containing genetically modified crops didn't win wide approval. A consortium including General Mills, Nestle USA, PepsiCo (PEP), Monsanto (MON), DuPont (DD) and other corporate giants, were key contributors to the roughly $22 million raised to campaign against the bill. Pre-made soups can contain a large number of ingredients containing GMOs. For instance, Campbell's (CPB) popular condensed Tomato Soup lists high fructose corn syrup as its second bi
Top Dividend Companies To Own In Right Now: Cummins Inc.(CMI)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Advisors' Opinion:- [By Charles Mizrahi]
Cummins (CMI) was founded by chauffeur Clessie Cummins to improve on what he felt was an outdated and inefficient technology.
He began producing diesel engines for trucks in the 1920s, but manufacturers were reluctant to switch from gas to diesel. During WWII, the Cummins engine was used in cargo trucks. In the decade following the war, sales increased fivefold, cracking the $100 million mark in 1956.
- [By Jonas Elmerraji]
Diesel engine maker Cummins (CMI) has posted reasonably perfunctory performance year-to-date, climbing 11.75% since the calendar flipped over to January. But zoom out a bit more, and CMI's rally from October looks a whole lot more impressive: Shares are up 38% since Oct. 11.
Now this stock looks well-positioned for another big leg higher.
Cummins is currently in the process of forming a long-term ascending triangle pattern, a price setup that's formed by horizontal resistance above shares at $121 and uptrending support to the downside. Essentially, as CMI bounces in between those two technical levels, it's been getting squeezed closer and closer to a breakout above that resistance price. When that breakout happens, we've got a buy signal for shares.
Over the course of this setup, the 200-day moving average has acted like a proxy for support. That's where I'd recommend keeping a protective stop after the breakout.
Top Dividend Companies To Own In Right Now: Cornerstone Progressive Return Fund(CFP)
Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.
Advisors' Opinion:- [By Dan Caplinger]
But you can see in several places the consequences of the stampede toward high yield. Here are just a few:
Closed-end funds Cornerstone Progressive (NYSEMKT: CFP ) and Pimco High Income (NYSE: PHK ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM ) and its concentration on high-yield mortgage REITs.When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.
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