LONDON -- After a busy month or so for company reports, we're heading into a quiet patch over the next few weeks as the end-of-March reporting season draws to a close. There won't be a lot to keep us alert next week, but we will have a small handful of important updates.
Here we take a quick look at two FTSE 100 companies and one from the FTSE 250 that are bringing us news in the coming week.
Wolseley (LSE: WOS )
We're expecting a third-quarter update from Wolseley on Tuesday, and if things are still going as they were at the halfway stage, announced in March, investors will probably be pleased -- though with the share price up nearly 50% over the past 12 months to 3,353 pence, they're probably already quite happy.
Like-for-like revenue at the plumbing, heating, and building products supplier was up 2.2% for the six months to Jan. 31, and with margins improving, the firm managed to convert that to a 7.6% rise in trading profit and a 3.9% rise in headline earnings per share. The interim dividend was lifted by 10% to 22 pence per share. Net debt was up to 拢871 million from 拢470 million at the same stage the previous year, but against revenue of 拢6.3 billion, that's not a massive sum.
5 Best Japanese Stocks To Own Right Now: Extreme Networks Inc.(EXTR)
Extreme Networks, Inc., together with its subsidiaries, develops and markets network infrastructure equipment and services to businesses, hospitals, schools, hotels, telecommunications companies, and government agencies. It offers Summit product family of stackable Ethernet switching systems that provide 10 megabit to 40 gigabit connection speeds, various physical presentations, and options to deliver power-over-Ethernet or unpowered standard Ethernet ports; and Black Diamond family of modular Ethernet switching systems, which deliver modular or chassis-based Ethernet connectivity solutions for enterprises, data centers, and service providers. The company also offers SummitWM family of wireless network controllers and associated Altitude access points to enable the deployment of nomadic and mobile converged network applications; and RidgeLine management software system that includes features tailored to data center, campus, and service provider management. It has strategic relationships with Motorola Inc., Netgear, Inc., Ericsson Enterprise AB, and Nokia Siemens Networks. The company sells its products through distributors, resellers, and field sales organizations. It operates in the United States, Canada, Mexico, Japan, Central America, Europe, the Middle East, Africa, South America, and the Asia Pacific. Extreme Networks, Inc. was founded in 1996 and is headquartered in Santa Clara, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
Extreme Networks (NASDAQ: EXTR) shares tumbled 15.38 percent to $5.96 after the company reported downbeat Q2 results and issued a weak Q3 profit forecast.
- [By Rich Bieglmeier]
We like to take it one step further than just buying, iStock specifically targets insiders with a history of making the correct call. Extreme Networks Inc. (EXTR) Director, Maury Austin is taking a second bite of the apple.
Top 5 Building Product Stocks To Buy Right Now: American Residential Properties Inc (ARPI)
American Residential Properties, Inc., incorporated on March 30, 2012, is a fully integrated and internally managed real estate investment company, which is organized as a real estate investment trust. The Company acquires, renovates, leases and manages single-family properties in select communities nationally. The Company is operating in ten states. American Residential Properties OP, L.P. acts as its operating partnership. American Residential GP, LLC is the wholly owned subsidiary of the Company and the sole general partner of its operating partnership. American Residential Leasing Company, LLC is a wholly owned subsidiary of its operating partnership. American Residential Properties TRS, LLC (TRS), that is a wholly owned subsidiary of its operating partnership. As of March 31, 2013, it owned 2,531 properties in Arizona, California, Florida, Georgia, Illinois, Indiana, Nevada, North Carolina, South Carolina and Texas , and it managed an additional 608 properties for Phoenix Fund in Arizona and Nevada. For the period from April 1, 2013 to April 12, 2013, the Company acquired or have contracted to acquire 785 single-family homes, of which 43 homes are in Arizona, four homes are in California, 66 homes are in Florida, 25 homes are in Georgia, 35 homes are in Illinois, 114 homes are in Indiana, 214 homes are in North Carolina, nine homes are in South Carolina and 275 homes are in Texas.
In addition to the Company�� primary business strategy of acquiring, restoring, leasing and managing single-family homes, it has a private mortgage financing strategy. As of March 31, 2013, the Company�� total portfolio of single family homes included 1,045 homes in phoenix, 304 homes in Chicago, 209 homes in Inland Empire, 136 homes in Winston-Salem, 265 homes in Indianapolis, 78 homes in Dallas-Fort Worth, 169 homes in Atlanta, 82 homes in other-California, 63 homes in Las Vegas, 138 homes in Fort Myers, 24 homes in Houston, 6 homes in Raleigh-Cary, 11 homes in Charlotte and one home in Charleston. As! of March 31, 2013, the Company�� portfolio of self-managed single-family homes included 1,521 homes. As of March 31, 2013, the Company�� portfolio of preferred operator program single-family homes included 1,010 homes.
Advisors' Opinion:- [By Mark Holder]
After an initial bump in Silver Bay, the stock has had a horrible 2013, now trading close to all-time lows. Recently, a couple of other IPOs in the sector have come to market with weak receptions. Both American Homes 4 Rent (NYSE: AMH ) and American Residential Properties (NYSE: ARPI ) offer different twists to the general thesis of investing in single-family rental properties to take advantage of the weakness in housing prices and the increased demand for rentals.
- [By Amanda Alix]
This spring, however, signs of a slowdown began to appear. The number of distressed properties began to diminish, prices began ticking upward, and interest rates started a slow rise. However, two snippets of good news may help float the boats of private equity firm Blackstone Group (NYSE: BX ) , and single-family REITs Silver Bay (NYSE: SBY ) and American Residential Properties (NYSE: ARPI ) : easier credit, and higher foreclosure rates.
Top 5 Building Product Stocks To Buy Right Now: MRC Global Inc (MRC)
MRC Global Inc., formerly known as McJunkin Red Man Holding Corporation, incorporated on November 20, 2006, is a holding company. The Company is the distributor of pipe, valves and fittings (PVF) and related products and services to the energy industry. The Company offers a range of PVF and oilfield supplies encompassing a complete line of products from its global network of suppliers to its more than 12,000 customers. The Company operates in two segments: North American segment and International segment. Its North American segment includes over 180 branch locations, six distribution centers in the United States, one distribution center in Canada, 11 valve automation service centers and over 170 pipe yards located in the oil and natural gas regions in North America. Its International segment includes over 40 branch locations throughout Europe, Asia and Australasia with distribution centers in each of the United Kingdom, Singapore and Australia and 10 automation service centers in Europe and Asia. On June 9, 2011, it acquired Stainless Pipe and Fittings Australia Pty. Ltd. (MRC SPF). On July 22, 2011, it acquired Valve Systems and Controls (VSC). In January 2013, the Company's subsidiary, McJunkin Red Man Corporation,acquired operating assets of Production Specialty Services, Inc. In July 2013, MRC Global Inc announced that it has completed the previously announced acquisition of the operating assets of Dan H. Brown, Inc., D/B/A Flow Control Products (Flow Control). In December 2013, MRC Global Inc acquired Flangefitt Stainless Ltd. Effective January 6, 2014, MRC Global Inc a unit of GS Capital Partners LP subsidiary of Goldman Sachs Group Inc's Goldman Sachs & Co unit, acquired Stream AS.
The Company distributes products globally, including in PVF intensive, oil and natural gas exploration and production (E&P) areas, such as the Bakken, Barnett, Eagle Ford, Fayetteville, Haynesville, Marcellus, Niobrara and Utica shales in North America. Its Canadian subsidiary Midfield Supply ULC and its! subsidiaries (MRC Midfield), provides PVF products to oil and natural gas companies operating primarily in Western Canada, including the Western Canadian Sedimentary Basin, Alberta Oil Sands and heavy oil regions. It offers more than 150,000 stock keeping units (SKUs), including a range of PVF, oilfield supply, automation, instrumentation and other general and specialty industry supply products.
The Company is the majority owned subsidiary of PVF Holdings LLC. Its wholly owned subsidiary, McJunkin Red Man Corporation and its subsidiaries (MRC), are global distributors of pipe, valves, fittings and related products and services across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining, petrochemical processing and general industrials) markets. The Company serves the global oil and natural gas industry, generating approximately 90% of its sales from supplying products and services to customers throughout the energy industry. Of its total sales, 62% of sales are comprised of valves, fittings and flanges and other industrial supply products and 38% are tubular products, mainly line pipe and oil country tubular goods (OCTG) as of September 30, 2011.
North American Operations
The Company distributes PVF products, primarily used in applications in the energy infrastructure sector, from its global network of suppliers. The products it distributes are used in the construction, maintenance, repair and overhaul of equipments. The products include Valves and Specialty Products, Line Pipe, OCTG, Carbon Steel Fittings and Flanges and Stainless Steel and Alloy Pipe and Fittings and others. The products under valves and specialty products include ball, butterfly, gate, globe, check, needle and plug valves, which are manufactured from cast steel, stainless/alloy steel, forged steel, carbon st! eel or ca! st and ductile iron. Specialty products include lined corrosion resistant piping systems, valve automation and top work components used for regulating flow and on/off service, and a range of steam and instrumentation products used in various process applications within its refinery, petrochemical and general industrial sectors.
Carbon line pipe is used in high-yield, high-stress, abrasive applications, such as the gathering and transmission of oil, natural gas and phosphates. Line pipe is part of its tubular product category. OCTG is part of its tubular product category, includes casing (used for production and to line the well bore) and tubing pipe (used to extract oil or natural gas from wells) and is either classified as carbon or alloy depending on the grade of material. Carbon steel fittings and flanges include carbon weld fittings, flanges and piping components used primarily to connect piping and valve systems for the transmission of various liquids and gases. These products are used across all the industries in which it operates. Stainless steel and alloy pipe and fittings include stainless, alloy and corrosion resistant pipe, tubing, fittings and flanges. These are used in the chemical, refining and power generation industries, as well as across all of the sectors in which the Company operates. Alloy products are principally used in high-pressure, high-temperature and high-corrosion applications typically seen in process piping applications.
The products under other category include natural gas distribution products, oilfield supplies, and other industrial products, such as mill and safety and electrical supplies. Natural gas distribution products include risers, meters, polyethylene pipe and fittings and various other components and industrial supplies used primarily in the distribution of natural gas to residential and commercial customers. It offers a range of oilfield and industrial supplies and completion equipment, and products offered include high density polyet! hylene pi! pe and fittings, valves, well heads, pumping units and rods. In addition, it supplies a range of specialized production equipment, including meter runs, tanks and separators used in its upstream sector.
The Company provides its customers with a range of services, including multiple deliveries each day, zone store management, valve tagging and system interfaces that directly tie the customer into its information systems. Its information system, which provides for customer and supplier electronic integrations, information sharing and e-commerce applications, provides service to its customers. The Company sources the products it distributes from a global network of suppliers. The remainder of the products it distributes are sourced from manufacturer representatives, trading companies and, in some instances, other distributors.
The Company competes with Wilson Industries, Inc., National Oilwell Varco, Inc. and Ferguson Enterprises.
International Operations
The Company�� International segment represents its valve and stainless and alloy pipe, fitting and flange distribution business to the energy and general industrial sectors, across each of the downstream and upstream sectors, through its distribution operations located throughout Europe, Asia, Australasia and the Middle East. Through its over 40 branch and service facilities throughout Europe, Asia, Australasia and the Middle East, it distributes a complete line of valve and stainless and alloy pipe, fittings and flanges and specialty products. Its Valve products offered include ball, butterfly, gate, globe, check, needle and plug valves, which are manufactured from cast steel, stainless/alloy steel, forged steel, carbon steel or cast and ductile iron. Valves are used in oilfield and industrial applications to control direction, velocity and pressure of fluids and gases within transmission networks. Specialty products include lined corrosion resistant piping systems, valve automation and top work compo! nents use! d for regulating flow and on/off service and a range of steam and instrumentation products used in various process applications within its offshore, refinery, petrochemical and general industrial sectors.
Stainless steel products are used in all sectors in which it operates, including oil and gas, mining and mineral processing, water treatment and desalination, and petrochemical. It provides its customers with a range of services, including multiple daily deliveries, zone stores management, valve tagging and system interfaces that directly tie the customer into its information systems.
The Company competes with Econosto.
Advisors' Opinion:- [By Eric Volkman]
MRC Global (NYSE: MRC ) now officially has a new asset in its portfolio. The company announced it has finalized the acquisition of the operating assets of Flow Control Products. It describes the once privately held firm as "a leading provider of pneumatic, electric and electro-hydraulic valve automation packages and related field support to the Permian Basin energy industry, including production facilities, pipelines, and plant operations." According to MRC Global, the company posted $28 million in revenues last year.
- [By Monica Wolfe]
MRC Global (MRC)
Over the duration of the second quarter, Columbia Wanger upped their position in MRC Global by 258.43%. The fund purchased 1,809,000 shares of the company�� stock at an average price of $29.69. Since their increase, the price per share has dropped -18.9%.
Top 5 Building Product Stocks To Buy Right Now: RenaissanceRe Holdings Ltd.(RNR)
RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. The company offers property catastrophe reinsurance products, including catastrophe excess of loss reinsurance, excess of loss retrocessional reinsurance, and insurance-linked securities; and specialty reinsurance products, such as catastrophe exposed workers? compensation, surety, terrorism, energy, aviation, crop, political risk, trade credit, financial, mortgage guarantee, catastrophe-exposed personal lines property, casualty clash, other casualty lines, and other specialty lines of reinsurance. It also provides various insurance products consisting of commercial property, including catastrophe-exposed commercial property products; commercial multi-line comprising commercial property and liability coverage, such as general liability, automobile liability and physical damage, building and contents, and professional liability; and personal lines property, including homeowners personal lines property coverage and catastrophe exposed personal lines property coverage. The company offers its products and services primarily through intermediaries. RenaissanceRe Holdings Ltd. was founded in 1993 and is headquartered in Pembroke, Bermuda.
Advisors' Opinion:- [By David Sterman]
Lastly, conservative investors may want to check out Renaissance Reinsurance (NYSE: RNR) which has been buying back shares for seven straight years, reducing the share count by 30% in that time. The newly announced buyback plan, which could absorb up to 13% of the additional share count, is a primary focus now. But when share buybacks are no longer the focus, then robust dividend growth will likely be the norm as this company can afford to support a $4.50 a share dividend (equating to a 5% yield) while still keeping the payout ratio below 50%.
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