recent acquisitions
ACI WORLDWIDE $62.74 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402- 334-5101; www.tsainc.com; Shares outstanding: 39.5 million; Market cap: $2.4 billion; No dividends paid) makes software that processes transactions involving credit cards, debit cards, ATMs, point-of-sale terminals and interbank payments. Its products also help cut fraud.
< br /> In the quarter ended September 30, 2013, acquisitions increased ACI’s revenue by 38.0%, to $213.9 million from $155.1 million a year earlier. Earnings per share rose 79.3%, to $0.52 from $0.29. Cost cuts and the higher revenue were behind the rise.
< br /> The company’s outlook is positive, but the stock trades at a high 22.4 times ACI’s forecast 2014 earnings of $2.80 a share. Moreover, any problems with integrating its recent acquisitions could significantly cut into 2014 earnings.
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< br /> In the quarter ended September 30, 2013, acquisitions increased ACI’s revenue by 38.0%, to $213.9 million from $155.1 million a year earlier. Earnings per share rose 79.3%, to $0.52 from $0.29. Cost cuts and the higher revenue were behind the rise.
< br /> The company’s outlook is positive, but the stock trades at a high 22.4 times ACI’s forecast 2014 earnings of $2.80 a share. Moreover, any problems with integrating its recent acquisitions could significantly cut into 2014 earnings.
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GOOGLE INC., $1,011.41, Nasdaq symbol GOOG, jumped 14% on Friday after the company reported better-than-expected earnings and revenue. In the three months ended September 30, 2013, earnings rose 23.3%, to $3.6 billion from $3.0 billion a year earlier. Due to more shares outstanding, earnings per share rose at a slower rate of 21.1%, to $10.74 from $8.87....
BROADRIDGE FINANCIAL SOLUTIONS $32.80 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 119.1 million; Market cap: $3.9 billion; Dividend yield: 2.6%) continues to hit all-time highs, but we think the stock still has room to rise.
Broadridge serves the investment industry in three main areas: investor communications, securities processing and transaction clearing....
Broadridge serves the investment industry in three main areas: investor communications, securities processing and transaction clearing....
AASTRA TECHNOLOGIES $20.78 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905-760- 4200; www.aastra.com; Shares outstanding: 11.8 million; Market cap: $245.1 million; Dividend yield: 3.9%) develops and markets products and systems for accessing communication networks, including the Internet....
ACI WORLDWIDE $54.45 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402-334-5101; www.tsainc.com; Shares outstanding: 39.5 million; Market cap: $2.2 billion; No dividends paid) makes software for processing transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments. Its products also help cut fraud.
In the quarter ended June 30, 2013, ACI’s revenue rose 30.0%, to $208.0 million from $160.0 million a year earlier. That’s mainly due to the contribution from Online Resources Corp., which ACI bought for $126.6 million early this year. The purchase has helped ACI further expand into online banking and bill payments.
Without one-time items, earnings per share dropped to $0.14 from $0.16. The decline was largely due to the cost of integrating acquisitions.
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In the quarter ended June 30, 2013, ACI’s revenue rose 30.0%, to $208.0 million from $160.0 million a year earlier. That’s mainly due to the contribution from Online Resources Corp., which ACI bought for $126.6 million early this year. The purchase has helped ACI further expand into online banking and bill payments.
Without one-time items, earnings per share dropped to $0.14 from $0.16. The decline was largely due to the cost of integrating acquisitions.
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BROADRIDGE FINANCIAL SOLUTIONS $32.80 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 119.1 million; Market cap: $3.9 billion; Dividend yield: 2.6%) continues to hit all-time highs, but we think the stock still has room to rise.
Broadridge serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada.
In its fiscal 2013 fourth quarter, which ended June 30, 2013, Broadridge’s earnings jumped 61.4%, to $134.6 million from $83.4 million a year earlier. Per-share earnings rose 67.2%, to $1.12 from $0.67, on fewer shares outstanding.
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Broadridge serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada.
In its fiscal 2013 fourth quarter, which ended June 30, 2013, Broadridge’s earnings jumped 61.4%, to $134.6 million from $83.4 million a year earlier. Per-share earnings rose 67.2%, to $1.12 from $0.67, on fewer shares outstanding.
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SHAWCOR LTD. $43 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 59.6 million; Market cap: $2.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.shawcor.com) gets 90% of its revenue by making sealants and coatings that keep oil and gas pipelines from rusting. The remaining 10% comes from manufacturing industrial products, such as electrical wire and protective sheaths.
The company continues to benefit from recent acquisitions that have increased its North American manufacturing capacity. As well, demand for its pipeline-coating services continues to rise in Asia, Latin America and Europe. Asia now supplies 39% of ShawCor’s revenue, followed by North America (38%), Europe (15%) and Latin America (8%).
In the three months ended June 30, 2013, ShawCor’s revenue jumped 39.9%, to a record $457.3 million from $326.9 million a year earlier. That’s mainly because the company paid $30 million for the 49% of Socotherm LaBarge LLC that it did not already own. Texas-based Socotherm coats and insulates pipelines for deepwater oil and gas projects. Its clients operate in the Gulf of Mexico and off Africa’s west coast.
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The company continues to benefit from recent acquisitions that have increased its North American manufacturing capacity. As well, demand for its pipeline-coating services continues to rise in Asia, Latin America and Europe. Asia now supplies 39% of ShawCor’s revenue, followed by North America (38%), Europe (15%) and Latin America (8%).
In the three months ended June 30, 2013, ShawCor’s revenue jumped 39.9%, to a record $457.3 million from $326.9 million a year earlier. That’s mainly because the company paid $30 million for the 49% of Socotherm LaBarge LLC that it did not already own. Texas-based Socotherm coats and insulates pipelines for deepwater oil and gas projects. Its clients operate in the Gulf of Mexico and off Africa’s west coast.
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Small cap stocks are companies with market caps (or the value of all their outstanding shares) below $2 billion, or some other arbitrary figure.
Many investors avoid small caps like the four we analyze below, because they’re generally more volatile than large cap stocks....
Many investors avoid small caps like the four we analyze below, because they’re generally more volatile than large cap stocks....
SHAWCOR LTD. (Toronto symbol SCL; www.shawcor.com) gets 90% of its revenue by making sealants and coatings that keep oil and gas pipelines from rusting. The remaining 10% comes from manufacturing industrial products, such as electrical wire and protective sheaths....
AGILENT TECHNOLOGIES INC., $52.15, New York symbol A, plans to break itself into two publicly traded companies. The news caused the stock to rise 8% this week. One business will keep the Agilent name and focus on testing equipment for medical-research labs. This company’s revenue will be about $3.9 billion in its 2013 fiscal year, which ends October 31, 2013. It will pay a dividend comparable to Agilent’s current 0.9% yield. The second firm will make testing systems for improving electronics, such as cellphones and computer equipment. Its projected fiscal 2013 revenue is $2.9 billion. This company will not pay a dividend, at least initially....