FirstService (Nasdaq: FSRV ) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), FirstService missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP loss per share shrank. GAAP loss per share stayed the same.
Margins contracted across the board.
Revenue details
FirstService booked revenue of $498.1 million. The seven analysts polled by S&P Capital IQ expected revenue of $507.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.20. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.02 per share. Non-GAAP EPS were -$0.20 for Q1 compared to -$0.22 per share for the prior-year quarter. GAAP EPS of -$0.55 were the same as the prior-year quarter.
Top 5 Healthcare Equipment Companies To Own For 2015: Orange SA (ORAN)
Orange SA, formerly France Telecom S.A., incorporated on December 31, 1996, is an European mobile operator, an asymmetric digital subscriber line (ADSL) Internet access provider in Europe, and telecommunications services provider for multinational businesses under the Orange Business Services brand. As of December 31, 2010, France Telecom provided services to 209 million customers, of which 150 million were mobile phone customers and 13.7 million were broadband Internet customers, and as of June 30, 2011, provided services to 217.3 million customers. It offers its individual customers, businesses and other telecommunications operators a line of services covering fixed and mobile communications, data transmission, the Internet and multimedia, and other services. The Company�� segments include France, Poland, Spain, Rest of the World, Business Communication Services, International Carriers and Shared Services.
France
The range of services in the Home segment in France is made up of fixed-line telephony services; other consumer services; online, Internet access, and multimedia services; advertising-management and Internet portal business; content-related business, and carrier services. France Telecom�� traditional fixed-line telephony services provide access to the network, local and long-distance telephone communication services throughout France, and international calls. In addition, France Telecom offers its fixed-line telephony subscribers a broad range of value-added services. The France Telecom Group has a number of portals, including Orange.fr, which is either Web- or mobile-accessible. In December 2010, its audience reached 22.5 million, and Voila.fr and Cityvox (entertainment and leisure listing site in France) in its different formats, such as Cityvox.fr, Cinefil.com, Spectacles.fr, Concert.fr and WebCity.fr. The primary revenue source is online advertising sold by the Orange Advertising Network. This advertising management department sells advertising space for ab! out 20 third-party sites, both Web and mobile.
Orange�� offers are built around three product lines: postpaid, prepaid and convergent offers. Orange offers two categories of prepaid offer, to which calls are charged by the second from the first second: The Mobicarte, includes a range of recharges from 5 to 100 euros and Orange Initial, which enables the customer to be billed monthly depending on his or her actual consumption. Orange also has a number of offers that pair mobile use and mobile Internet access with all-in-one offers, including both the hardware and an Internet access plan. The USB 3G+ plans enable connection to the Internet via the mobile broadband network or the Orange public wireless fidelity (WiFi) network from a laptop computer, multimedia mobile phone or a tablet personal computer.
The Company competes with SFR-Neuf Cegetel, Free, Bouygues Telecom, Numericable, Google and Voila.
Poland
Orange (the brand under which the TP Group subsidiary, PTK Centertel trades) had a total of 14.3 million during the year ended December 31, 2010. In April 2010, PTK Centertel introduced segmented postpaid offers for residential customers. Depending on the usage profile, customers can choose from three types of tariff plans: Dolphin tariffs for frequent users of voice services, Pelican for customers focused on text and community Web-services, and Panther for users of mobile data services (Internet, email). The mobile broadband Internet customer base (Edge and 3G data services) reached 547,000 customers during 2010. In 2010, Orange introduced a SIM-only mobile Internet offer and a portfolio of terminals dedicated to the Orange Free offer.
The Company competes with Netia, Multimedia Polska, Aster and Hyperion.
Spain
Orange Espana, operating under Orange, Ya.com and OBS (Enterprise) brands offers fixed and mobile telecommunication services to more than 13 million customers in the residential, professional, business and who! lesale se! gments. Orange Espana�� physical distribution network consists in 2,922 points of presence, including Orange own shops, franchises, specialized shops under the Orange brand, non exclusive specialized shops, and a network of retailers. Orange Espana also distributes its services through distance selling channels, and its own online portal. Orange Espana fixed access infrastructure, based on its own optic fiber network and ADSL roll-out, enables delivery of advanced telecommunication services, including broadband Internet access, voice over Internet protocol (VoIP), internet protocol television (IPTV), television (TV) streaming, video on demand (VOD) and advanced business services.
The Company competes with Telefonica, ONO, Vodafone and Jazztel.
Rest of the world
The France Telecom Group is present in Luxembourg via Orange S.A. (formerly VOXmobile), a wholly owned subsidiary of Mobistar. The Luxembourg subsidiary, VOXmobile, was renamed Orange S.A. in October 2009. During the year ended December 31, 2010, Orange S.A. had 88,900 active mobile telephony customers.
The Company competes with Proximus, Mobistar, Base, ex-Mobifon, Telefonica O2, Deutsche Telekom, Swisscom, Sunrise, Moldtelecom, Starnet, ECMS, Vodafone Egypt and Etisalat U.A.E.
Enterprise Communications Services
The Orange Business Services brand covers both the Enterprise Communication Services (ECS) unit, which supplies communications services to multinational companies and corporate accounts and small and medium enterprises (SMEs) in France and Orange subsidiaries Business-to-Business (B2B) activities.
Orange Business Services covers the Company�� business customers in more than 160 countries and regions where it provides local technical and commercial assistance. This business segment includes a number of subsidiaries, including Etrali (trading solutions), Almerys (health), Orange Consulting (project management, telecom consulting), Multimedia Business Se! rvices (m! ultimedia contact centers), Neocles (virtualization solutions), IT&Labs (design and development of embedded Machine-to-Machine applications, vehicle fleet management), Obiane and Telecom System (secure network integration), Alsy (integration services), EGT (equipment and services for video conferences), and GlobeCast (multimedia broadcast systems).
The Company competes with IBM, HP, Microsoft and Cisco.
The Company competes with COLT Telecom, Numericable-Completel, BT Global Services, AT&T Business Services, Verizon Business, T-Systems, Reliance Globalcom, Tata Communications, Belgacom Group, NextiraOne, Spie Communication, NTT Group, IBM Global Services, HP Enterprise Services, Atos Origin, Salesforce and Amazon.
International Carriers and Shared Services
Orange�� International Carriers activity is based on long-distance network infrastructure and offers a range of solutions on the international market. The Company is involved in the design, construction and operation of submarine cables. The Company�� wholesale activity includes a worldwide network with over 120 presence points and 130,000 kilometers of fiber optic cable; a worldwide network of Internet protocol (IP) routes with end users in over 220 countries and connections to over 250 Internet service providers and a hit rate of over 85% for all European net surfers. France Telecom�� network has over 330 direct routes and interconnections with over 359 operators, and coverage in over 900 destinations with around-the-clock technical support. Its range of solutions includes interconnection, interoperability and signaling solutions for messaging, voice and video telephony services and the Orange Roaming Hub (Global eXchange) solution for moving from a bilateral model to a multilateral roaming system.
France Telecom has developed activities related to its core business line, such as content broadcasting, audience and advertising, and also healthcare activities. Orange offers free a! nd paying! content on its own channels, paid program packages, Video On Demand, music and game offers. Orange distributes content provided by third parties (television, games, music) on fixed-line and mobile networks both inside and outside France. Orange also produces its own channels: Orange Sport and Orange Cinema�� five different channels. Studio 37, is a subsidiary for investing in cinematographic rights, through both co-production and the acquisition of catalogue rights. During the year ended December 32, 2010, Studio 37 supported the launch of 15 films, including the Gainsbourg and Fatal. The Viaccess group, a France Telecom subsidiary, offers access solutions to television content. Orange is present in the games market through the games it sells on the orange.fr portal (Casual Games dedicated to family type games, such as breakout clones or riddles). Orange Healthcare, is the Company�� healthcare division, focused on developing service packages for the whole sector within a partnership approach.
The Company competes with Telefonica, Deutsche Telekom, Telia Sonera and AT&T.
Advisors' Opinion:- [By Chandan Dubey]
I have been holding shares of Orange (ORAN)(XPAR:ORA), previously known as France Telecom, since December 2011. In this article, I want to discuss some of the things that worry me about the company.
- [By Patricio Kehoe] rance, the company has expanded its services onto 32 other countries, serving a total of 236 million customers. Hence, it has become one of the world�� largest telecommunications carriers and the third largest wireless operator in Europe.
The firm provides local phone, domestic and international long distance, wireless data communications, Internet access, multimedia, broadcast and cable TV services. Its business arm, Orange Business Services, accounts for 15.9% of the company�� sales and is one of the leading providers of communications services to multinational companies.
A Healthy Management
In order to counter the aggressive pricing strategy from wireless new entrant Iliad SA (ILD) in France, Orange was forced to reduce prices. Thus, the firm has continued to add wireless subscribers but at a lower average revenue per user, mainly through its low-end Sosh brand.
Further, its existing contract base keeps rolling into lower priced plans. As a result, the company�� revenue has plunged, in spite of which the firm has managed to improve its bottom line year over year in 2013.
Management�� efficiency is also evidenced by its decision to reduce its non-core assets in order to concentrate on its most profitable businesses. Consequently, almost nine months after its initial tender, Orange divested its Dominican unit to Luxemburg-based Altice SA (ATC) for $1.4 billion last week.
The news boosted its stock price, which climbed 2.31% on the NYSE last Wednesday. This operation provides the company with significant cash volume to reduce its debt burden and invest in Europe and other emerging markets.
Growth Drivers
The company is accelerating infrastructural developments to drive 4G LTE expansion in order to support wireless growth in France and other key regions across Europe. In 2013, it captured 40% of the French population with 4,200 sites and it also reached 0.5 million customers and 30% of its network cover
- [By Sean Williams]
This week's loser
The laggard this week was foreign telecommunications provider Orange (NYSE: ORAN ) (formerly France Telecom), which dipped 4.2% on the week. Although no company-specific news set off the pessimism, regional worries out of Portugal that austerity measures may not stick sent ripples of fear throughout Europe, where the heart of Orange's revenue stream is located. I purchased Orange in my own portfolio late last year on the high prospects for its emerging market growth coupled with steady European cash flow. While I certainly haven't liked seeing its dividend get cut by more than 40%, and feel more hiccups may be on the way, I see it as an incredible cash cow at these levels, and am still considering adding to my position. - [By Barel Karsan]
About a year ago, Orange (ORAN) was brought up on this site as a potential value investment. (Back then, we knew it as France Telecom (FTE).) Sentiment was in the toilet. A weak European economy combined with new regulations and an upstart competitor scared investors away, resulting in price to free cash flow ratios in the single digits. But these are exactly the conditions under which investors should be buying. When temporary issues (and there were a trifecta here!) affect a historically profitable business in an industry with barriers to entry, it can create a buying opportunity if investors are running scared. That appears to have been what happened here. The regulatory issues eased up as did the competitive environment, and shares of Orange have risen 60% to what I would consider a more appropriate valuation. Some of the comments I received when I wrote the article last year include: "FTE will end, but I think it has more than enough strength to limp on for another decade at least, dragging on yield hungry investors that don't know any better." "Lets not look at the horrible French economy" "worsening unemployment" "government that loves to socialize, ruin their private businesses" "It's been in decline year after year after year." Such macro-economic, backward-looking forecasts have no place in value investing! Go against the crowd.Disclosure: No position
Hot Electric Utility Stocks To Invest In 2014: Iron Mountain Incorporated(IRM)
Iron Mountain Incorporated, together with its subsidiaries, provides information management services primarily in North America, Europe, Latin America, and the Asia Pacific. The company offers records management services, including records management program development and implementation based on best-practices to help customers comply with specific regulatory requirements; implementation of policy-based programs that feature storage for various media comprising paper; flexible retrieval access and retention management; hybrid services to help organizations gain control over their paper records; and specialized services for vital records and regulated industries, such as healthcare, energy, government, and financial services. It also provides data protection and recovery services, such as disaster preparedness; off-site vaulting of data backup media for data recovery in the event of a disaster, human error, or virus; online backup and recovery solutions for desktop and la ptop computers, and remote servers; and technology escrow services to protect and manage source code and other proprietary information. In addition, the company offers information destruction services that primarily consist of physical secure shredding operations; and is involved in the shredding of sensitive documents to third-party recyclers. Further, it provides fulfillment services that assemble custom marketing packages and orders, as well as provide reporting on customer marketing literature inventories; and professional consulting services to develop and implement comprehensive records and information management programs. Iron Mountain Incorporated serves commercial, legal, banking, health care, accounting, insurance, entertainment, and government organizations. The company was founded in 1951 and is headquartered in Boston, Massachusetts.
Advisors' Opinion:- [By Ben Levisohn]
Shares of Iron Mountain (IRM) have dropped today after Barclays said the company’s conversion into a real-estate-investment trust is unlikely to succeed.
The downgrade comes following yesterday’s announcement that that Iron Mountain’s CFO, Brian McKeon, would exit that position�leave the company at the end of the month. He will remain at the company until the end of the year to help with the transition. Barclays’ analyst Manav Patnaik believes that’s a sign that a REIT conversion won’t happen. He writes:
It has been 4-6 months since IRM received the ��entatively adverse��ruling from the IRS and the REIT working group was formed. We viewed our 30% conversion probability as cautious, and the announced CFO departure gives us a catalyst to lower it to 10%, which is at the low end of the market�� estimated range of10-20%…
Our lower-than-historical average applied multiples are based on our view that increasing enterprise mobility, along with improvements in cloud security, will precipitate a secular decline (albeit a ��low bleed��for now) of physical storage in favor of cloud storage. Assuming a 5-7 year statute of limitations, an inflection point that makes this ��leed��accelerate is our concern ��and hence a lower multiple. We estimate that fundamental downside, assuming IRM is unsuccessful in converting to a REIT, is $21 ��based on FY14E.
With that, Patnaik cut Iron Mountain to Underweight from Equal Weight with a price target of $23.
Shares of Iron Mountain have fallen 2.3% to $25.72 today, while comparable have been mixed. Leidos Holdings (LDOS) has ticked up 0.6% to $46.28 and Amdocs (DOX) has risen 0.8% to $37.20. Maximus (MMS), on the other hand, has fallen 1.2% to $46.22 and Xerox (XRX) is off 0.3% to $10.62.
UPDATE:
Analyst�Manav Patnaik reached out to me after the close on Oct. 11 to clarify that the downgrade is not solely based on the CFO’s
- [By Michael Flannelly]
Early on Friday, information protection and storage services company Iron Mountain Incorporated (IRM) announced that it has acquired Cornerstone Records Management for $191 million in cash.
Cornerstone Records Management provides record storage, document shredding, and data protection services to small and mid-sized business in the Mid-Atlantic and Northeast regions, as well as the Southern California, Denver, and Houston areas.
The acquisition of Cornerstone Records Management will help Iron Mountain grow its core information storage business by adding small and mid-sized organizations to its customer base.
Iron Mountain went on to note that it does not believe this acquisition will provide a meaningful impact in 2013 results. However, it should add $50 to $55 million in revenues in 2014.
Iron Mountain shares were inactive during pre-market trading on Friday. The stock is down 16.33% year-to-date.
- [By Jonathan Yates]
But it's events like the Missouri accident that should focus industry and investor attention on�Iron Mountain (NYSE: IRM).
Operating in the business software and services sector, along with other firms like�Microsoft (NASDAQ: MSFT), CA Inc (NASDAQ: CA) and Citrix Systems (NASDAQ: CTXS), Iron Mountain is the premier company in pipeline record management. Iron Mountain plays a critical role in preventing pipeline disasters, maintaining the infrastructure and in overall risk control. The position that Iron Mountain has in the energy network will increase in scale and importance as the use of natural gas increases.
Hot Electric Utility Stocks To Invest In 2014: Manhattan Associates Inc.(MANH)
Manhattan Associates, Inc. develops, sells, deploys, services, and maintains supply chain software solutions for the planning and execution of supply chain activities. It offers Manhattan SCOPE and Manhattan SCALE, which are platform-based supply chain software solutions. The company?s Manhattan SCOPE is a portfolio of supply chain solution suites that include event and schedule tracking; alerts and notifications; inventory, order, and shipment visibility; cost monitoring and tracking; leading-edge analytics; and reporting with graphical depictions of critical supply chain performance metrics. Manhattan SCOPE also includes X-Suite solutions comprising flow management and extended enterprise management. The company?s Manhattan SCALE is a portfolio of logistics execution solutions that offer trading partner management, yard management, optimization, warehouse management, and transportation execution services. Manhattan Associates, Inc. also offers professional services, in cluding planning and implementation services; and customer support, software enhancement, and training services. In addition, it sells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company serves retailers, distributors, wholesalers, manufacturers, grocery stores, life sciences companies, government, and other organizations. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.
Advisors' Opinion:- [By Seth Jayson]
Manhattan Associates (Nasdaq: MANH ) reported earnings on April 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Manhattan Associates met expectations on revenues and beat expectations on earnings per share.
Hot Electric Utility Stocks To Invest In 2014: Orient-Express Hotels Ltd.(OEH)
Orient-Express Hotels Ltd. and its subsidiaries engage primarily in the hotel and travel businesses. It focuses on the luxury end of the leisure market. The company owns 49 properties, including 40 individual deluxe hotels, 1 stand-alone restaurant, 6 tourist trains, and 2 river/canal cruise businesses in 24 countries. It also engages in the real estate and property development business. Orient-Express Hotels Ltd. was founded in 1971 and is based in Hamilton, Bermuda.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Orient-Express Hotels (NYSE: OEH ) , whose recent revenue and earnings are plotted below. - [By Rich Duprey]
Luxury hotel operator Orient-Express (NYSE: OEH ) announced yesterday that shareholders at its annual meeting elected a new chairman of the board to the company,�Roland Hernandez, along with eight other directors.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Orient-Express Hotels (NYSE: OEH ) , whose recent revenue and earnings are plotted below.
Hot Electric Utility Stocks To Invest In 2014: Clarke(t)
T.Clarke plc, a building services contractor, provides electrical and mechanical installation services and supplies associated equipment. The company offers information communications technology (ICT) services in the areas of structured cabling and connectivity, network infrastructure and security, networked energy management, data centre infrastructure, and managed and support services; facilities management services, such as preventative, reactive, and planned maintenance solutions; and green technologies services, which comprise photovoltaics, rainwater harvesting, biomass boilers, ground source heating, air source heating, wind turbines, lighting, and carbon reduction audit services. It also provides massive reading station redevelopment, cross rail, border rail link, and underground power upgrade services for the rail sector; lifecycle building services combining mechanical and electrical works with ICT for utilities and technologies sectors; lifecycle services for ho tel and residential sectors, which include electrical, ICT, and mechanical systems design, installation, commissioning, and maintenance; and mechanical and electrical contracting services for education, healthcare, government/local authority, retail and leisure, stadiums, transport, towers, media, and residential sectors. In addition, the company manufactures and prefabricates elements of an installation, as well as engineering components. T.Clarke plc was founded in 1889 and is headquartered in London, the United Kingdom.
Advisors' Opinion:- [By WALLSTCHEATSHEET]
AT&T is a communications and entertainment company that operates around the world. The company is preparing to get serious about merging with Vodafone, which would create the world’s largest telecom operator by sales. The stock has been consolidating in recent years and is now trading sideways. Over the last four quarters, earnings and revenues have been increasing, which has left investors pleased with the company. Relative to its peers and sector, AT&T has been a weak year-to-date performer. WAIT AND SEE what AT&T does next.
- [By Alex Planes]
Theodore Roosevelt's ascent to the presidency following President William McKinley's assassination revived the Sherman Antitrust Act from near-death, and it was finally used to dismantle a company in 1904. That year, the Northern Securities railroad trust -- controlled by J.P. Morgan and John D. Rockefeller, among others -- was found to control an unreasonably large part of American railroad traffic, and was broken back up into its component railroads. This reestablished the Act as a potent weapon against monopolies, and it was used many times over the following century against major companies, if not always successfully. Here are some of the landmark decisions issued under an interpretation of the Sherman Antitrust Act, with brief explanations provided below (you can also click on their links for more information):
Standard Oil Co. of New Jersey v. United States, 1911. United States v. Alcoa (NYSE: AA ) , 1945. United States v. AT&T (NYSE: T ) , 1982. United States v. United States Steel (NYSE: X ) , 1920. United States v. Microsoft (NASDAQ: MSFT ) , 2001. United States v. American Tobacco, 1911.The Standard Oil breakup in 1911 is the most important turning point of the Act's early history. It set a standard for "reasonableness" that has since been applied many times to determine what made a monopoly truly anticompetitive. Between this decision and the one that broke the American Tobacco trust several weeks later, the Supreme Court of 1911 is responsible for creating three long-tenured members of the Dow Jones Industrial Average (DJINDICES: ^DJI ) -- two of which (both oil companies) are still on the index today.
- [By Patientbioinvest]
Let�� take a look at his top three buys over the last quarter:
AT&T (T): This is a new holding for the fund. Olstein bought 146,000 shares at prices between $33.1 and $36.45. The current stock price is 33.01, i.e. a 5% to the average high-low price over the period. The stock has been in a bear trend for more than a year but counts Gurus James Barrow (Trades, Portfolio) and Brian Rogers (Trades, Portfolio) as biggest holders. AON (AON): The fund purchased 60,000 shares in the insurance company for a 0.75% impact to the portfolio. The stock is still trading at the upper bound of the high-low price ranges over the past quarter. Aon PLC provides risk management and human capital consulting services, delivering distinctive client value via risk management solutions, including insurance and reinsurance brokerage and workforce productivity solutions. It is also noteworthy that the stock saw a large insider buy of more than $2 million by one of the company�� director 10 days ago. International Game Technology (IGT): IGT is a global gaming company specializing in the design, manufacture and marketing of electronic gaming equipment and systems products. The Olstein fund added 246,000 shares of the company over the last quarter. The current price is at a 20% discount to the average of the price range over the period. It is noteworthy that Guru John Hussman (Trades, Portfolio) also bought 500,000 shares over the same period.
Also check out: Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks, and Stocks that Robert Olstein keeps buying
Currently 3.00/512345Rating: 3.0/5 (2 votes)
- [By Evan Niu, CFA]
In comparison, Comcast (NASDAQ: CMCSA ) has 18.3 million broadband subscribers, AT&T (NYSE: T ) has 16.4 million, Time Warner Cable (NYSE: TWC ) boasts 10.9 million, and Verizon (NYSE: VZ ) enjoys 8.8 million subscribers.
Hot Electric Utility Stocks To Invest In 2014: Hertz Global Holdings Inc(HTZ)
Hertz Global Holdings, Inc., through its subsidiaries, engages in the car and equipment rental businesses worldwide. It operates in two segments, Car Rental and Equipment Rental. The Car Rental segment engages in the ownership and lease of cars. This segment operates car rental locations at or near airports, as well as in central business districts and suburban areas of cities in the United States, Canada, France, Germany, Italy, the United Kingdom, Spain, the Netherlands, Switzerland, Belgium, Luxembourg, the Czech Republic, the Slovak Republic, Australia, New Zealand, China, and Brazil. It also operates retail used car sales locations in the United States and France. The Equipment Rental segment rents earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, generators, pumps, small tools, compaction equipment, and construction-related trucks. In addition, this segment sells new equipment, and consumables, such as gloves and ha rdhats. The company also offers claim administration services, such as investigating, evaluating, negotiating, and disposing of various claims, including third-party, first-party, bodily injury, property damage, general liability, and product liability. Hertz Global serves various industries, such as construction, petrochemical, automobile manufacturing, railroad, power generation, and shipbuilding. The company was founded in 1918 and is headquartered in Park Ridge, New Jersey.
Advisors' Opinion:- [By Ben Levisohn]
Timing of the transaction completion is mid 2015, following final approval of the BoD, receipt of favorable opinion on tax free status from IRS, shareholder approval, & all regulatory approvals. As a point of interest we have seen several announcements recently where an announcement of the split drives the stocks up 10% and quickly fades as timing sets in and market risk still exists. recent examples [Hertz (HTZ), FMC Corp (FMC), Agilent (A), Noble (NE), CBS (CBS)]. I would expect the stock to fade hard from these levels
- [By Jonas Elmerraji]
Rental car company Hertz Global Holdings (HTZ) has been benefitting from strong car sales too. Hertz is one of the biggest car rental providers in the world, with approximately 10,400 locations in 150 countries. In addition to the firm's namesake brand, Hertz owns Thrifty Car Rental and Dollar Rent A Car.
Hertz operates in a concentrated, competitive market, but car rental strategies have been maturing in recent years. Rental firms have spent the last decade courting frequent business travellers more than before, partnering with airlines and credit card companies to offer more perks over prices. As travel spending continues to tick higher into 2014, a rising tide should lift all ships - but particularly league-leader Hertz.
I mentioned that Hertz was benefitting from car sales. A rental car firm's attractiveness hinges on a modern, well-equipped fleet of cars. To pull that off, Hertz has to sell its existing cars on the used wholesale market after just a couple of years. That quick turnover rate is a challenge when times are tough, but with used car prices soaring amid low inventory right now, higher proceeds should help buoy the firm's bottom line. With rising analyst sentiment in Hertz this week, we're betting on shares.
- [By Chris Hill]
Hertz (NYSE: HTZ ) dips on good-not-great earnings. Candian retailer Hudson's Bay buys Saks (NYSE: SKS ) for $2.4 billion. Wynn Resorts' (NASDAQ: WYNN ) second-quarter profit gets hit with one-time charges. Omnicom Group (NYSE: OMC ) merges with Publicis Group to form the world's largest advertising and marketing firm. In this segment from Investor Beat, Motley Fool analysts Bill Barker and Andy Cross discuss four stocks making moves on Tuesday.
