Reuben Brewer

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  • Low Debt High Yield Coal Play

    By Reuben Brewer - August 16, 2013 | Tickers: BTU, RNO, WLT

    Rhino Resource Partners (NYSE: RNO) stands out from the coal pack because of its around 14% yield. That's a level at which most investors should assume that a big dividend cut is being priced in. However, Rhino is actually less levered than most of its competitors, giving it an edge in an industry with high fixed costs.

    Owning and operating coal mines requires a lot of up front capital more »

  • The Faltering American Dream Will Benefit This Trio

    By Reuben Brewer - August 15, 2013 | Tickers: RESI, ARPI, SBY

    Home ownership has fallen to 65% from its 2004 peak of 69.2% according to Bloomberg, suggesting that the American dream of owning a home is slipping away. That may or may not be true, but people still need to live somewhere and those seeking a house will increasingly turn to single family home real estate investment trusts (REITs) like Silver Bay Realty Trust (NYSE: SBY), American Residential Properties (NYSE: ARPImore »)

  • Nuclear Plant Closures Will Boost Coal's Prospects

    By Reuben Brewer - August 14, 2013 | Tickers: ARLP, CLD, BTU

    The owners of aging nuclear power plants have been opting to close them instead of paying for updates to keep them going. With new environmental laws regarding power plant emissions at least five years away, more nuclear plant closures could be on the way. That should help coal maintain or even grow its share of the electric generation market.

    Cheap natural gas prices led electric utilities to cut back on more »

  • Into Africa Via Hotels

    By Reuben Brewer - August 14, 2013 | Tickers: H, MAR, HOT

    As far as emerging markets go, Africa has been a distant also ran to China. However, the hoteliers are quickly building their businesses on the continent. It might be worth following Starwood (NYSE: HOT), Marriott (NYSE: MAR), and Hyatt (NYSE: H) into this uncharted region.

    According to Bloomberg, a rising middle class, increasing travel, and foreign business development, particularly from China, are combining to drive "the fastest pace of hotel more »

  • The High-End Electric Car Market Just Got Serious

    By Reuben Brewer - August 14, 2013 | Tickers: BAMXY, NSANY.PK, TSLA

    Tesla (NASDAQ: TSLA) has had a virtual lock on the high end of the electric car market until now. The Volt, Leaf, and Prius all target the lower end. But BMW's (NASDAQOTH: BAMXY) new i3 is squarely aimed at Tesla's core customer.

    A Near Miss

    Only a short time ago, Nissan (NASDAQOTH: NSANY.PK) decided to delay its all electric Infinity by at least a year so it could more »

  • The Emissions “Game Changer” You Shouldn't Miss

    By Reuben Brewer - August 14, 2013 | Tickers: CLNE, UPS, WM

    United Parcel Service (NYSE: UPS) recently called natural gas a “game changer” for vehicle emissions. That's true, and companies like UPS, Waste Management (NYSE: WM), and Clean Energy Fuels (NASDAQ: CLNE) are ahead of the curve.

    Garbage collection relies on a large number of vehicles that perform the same tasks every day on a regular basis. Large numbers of garbage trucks are owned by individual companies and normally all more »

  • Why Investors Should Watch This Deal Closely

    By Reuben Brewer - August 13, 2013 | Tickers: ALX, SKS

    Hudson's Bay is buying Saks (NYSE: SKS), the owner of Saks Fifth Avenue. This will expand the company's presence in the upscale market, which is a solid move. However, the plans to create a real estate investment trust to own the company's over 300 stores could make the deal a real winner.

    Time to sell
    The deal is valued at $2.4 billion. Hudson's will pay more »

  • What's Driving High-End Retail Sales Now?

    By Reuben Brewer - August 13, 2013 | Tickers: COH, LVMUY, ULTA

    Coach (NYSE: COH) is making more money at its discount outlets than its full price stores, according to The Wall Street Journal. LVMH Moet Hennessy Louis Vuitton (NASDAQOTH: LVMUY) is seeing a similar trend. Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) is going to benefit more than that pair from this shift.

    Too much money

    The wealthy have fared better than the less affluent since the 2007 to 2009 recession. That more »

  • This Does Nothing For The Limited Partners

    By Reuben Brewer - August 13, 2013 | Tickers: EPD, KMP, OKS, OKE

    ONEOK (NYSE: OKE) is spinning off its natural gas utility assets to become just the general partner (GP) of limited partnership ONEOK Partners (NYSE: OKS). That's good for ONEOK shareholders, but doesn't do much to help ONEOK Partners unit holders.

    Lots of Partners

    Limited partnerships (LPs) usually have general partners (GPs) that run them. The GP handles the day to day tasks, while the limited partners put up more »

  • Wage Demands Could Hurt This Restaurant Industry Leader

    By Reuben Brewer - August 13, 2013 | Tickers: BKW, DRI, MCD

    Employees of fast food companies, including McDonald's (NYSE: MCD) and Burger King (NYSE: BKW) are striking in demand of higher wages. If these demands lead to increased pay, these companies won't take a direct hit. Darden Restaurants (NYSE: DRI), however, won't be so lucky.


    The fast food industry is built on the franchise model. The franchisee takes on the operating risk and has to pay most more »

  • Foreign Markets Plague Retail Book Giant

    By Reuben Brewer - August 12, 2013 | Tickers: AMZN, WMT, YHOO

    Amazon (NASDAQ: AMZN) turned in another loss in the second quarter, as growth spending outstripped revenue growth. Although domestic operations were relatively strong, its overseas segment was a problem. That's not going to be particularly easy to fix in key growth markets.

    Investors have been waiting for Amazon's online retail dominance to lead to earnings, let alone earnings growth. So far the market has been very patient. Using more »

  • A Good Time for This Game Giant to Be Set Free

    By Reuben Brewer - August 12, 2013 | Tickers: ATVI, EA, VIVHY.PK

    Activision Blizzard (NASDAQ: ATVI) has agreed to pay Vivendi (NASDAQOTH: VIVHY.PK) $5.8 billion for its freedom. With a new game console cycle starting, that's good timing for Activision.

    In 2008, Vivendi merged its video game business with Activision in a transaction valued at about $9.8 billion. The move gave Vivendi control over the combined entity. At the time, it allowed the newly merged companies to leapfrog Electronic more »

  • Windows Mobile Needs More Apps!

    By Reuben Brewer - August 11, 2013 | Tickers: AAPL, MSFT, NOK

    Nokia (NYSE: NOK) has tied its fortunes to Microsoft's (NASDAQ: MSFT) Windows Mobile, but the new mobile operating system doesn't have the same industry backing as Google's Android or Apple (NASDAQ: AAPL). That's a problem for both companies.

    The Wall Street Journal quotes Nokia's head of smart phone devices, Jo Harlow, as highlighting the Nokia and Microsoft relationship as a partnership. She notes that both more »

  • These Networks Loom Large In The Brewing Content War

    By Reuben Brewer - August 10, 2013 | Tickers: CBS, CMCSA, DIS

    CBS (NYSE: CBS) is fighting hard to extract more money from Time Warner Cable in a key battle over the value of the top-rated station's content. Station owners Disney (NYSE: DIS) and Comcast (NASDAQ: CMCSA) are well positioned, too.

    Down to the Wire

    CBS and Time Warner Cable have taken their carriage fee dispute into overtime. A carriage fee is the amount that cable companies pay broadcasters to redistribute more »

  • Tech Giant Working On Simple

    By Reuben Brewer - August 10, 2013 | Tickers: AMZN, AAPL, MSFT

    The tech industry has been shifting gears lately, with the consumer side of the business increasingly focused on simple to use products. Apple (NASDAQ: AAPL) led the way. And now Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are trying their hands at it.

    In the Beginning

    At the start of the computer revolution, computers were complicated and hard to work with. We've come a long way on the usability more »

  • Dividend Picks From Guinness Atkinson Inflation Managed Dividend Fund

    By Reuben Brewer - August 9, 2013 | Tickers: BAESY.PK, NOC, VFC

    Guinness Atkinson Inflation Managed Dividend Fund (GAINX) focuses on a company's underling business before it looks at dividends. It recently sold VF Corp (NYSE: VFC) and bought BAE Systems (NASDAQOTH: BAESY.PK) and Northrup Grumman (NYSE: NOC).

    A Different Dividend Approach

    Investors often use yield as a yardstick to determine if a company is worth looking at. The managers at Inflation Managed Dividend Fund, however, don't bother with yield more »

  • Why Sticking With the Leaders Is the Best Option in Gaming

    By Reuben Brewer - August 9, 2013 | Tickers: ATVI, EA, ZNGA

    Zynga (NASDAQ: ZNGA) has fallen hard since the fanfare of its IPO. After searching in different directions to find a workable business model, the company has decided to “get back to basics.” That may be a good choice, but investors should still stick with companies like Electronic Arts (NASDAQ: EA) and Activision Blizzard (NASDAQ: ATVI).

    Zynga was among the first casual game makers in the social space, spreading its wares more »

  • Emerging Market Opportunities From US Shores

    By Reuben Brewer - August 8, 2013 | Tickers: ABB, AVP, GE, TUP

    Goldman Sachs Group CEO Lloyd Blankfein expects emerging markets to keep expanding. While that growth will come with volatility, it remains an investment opportunity. Intrepid types should consider companies like Avon (NYSE: AVP) and General Electric (NYSE: GE) to take advantage of these opportunities. 

    While discussing the world's economic and investment backdrop with a business group in Sydney, Blankfein was recently quoted by Bloomberg as saying, “It is very more »

  • It's Time To Get Serious About The Cyber Threat

    By Reuben Brewer - August 8, 2013 | Tickers: CSCO, FTNT, LMT, RDWR, FIRE

    The news that financial giants like Citi had been hit in a multi-year hacking scheme probably didn't surprise anyone. However, it shows that the United States needs to get serious about this threat. That should boost specialists like Radware (NASDAQ: RDWR) and Fortinet (NASDAQ: FTNT), but also military players like Lockheed Martin (NYSE: LMT).

    Big Names

    The current round of companies hit by hacking includes Citi, Chase, Automated Data more »

  • Private Equity Managers Say Sell Your Stocks Now!

    By Reuben Brewer - August 8, 2013 | Tickers: CMG, GOOG, TSLA

    Private equity managers are saying it's time to sell. That's disconcerting since these companies make money buying during market lows and selling at market peaks. It might be time to consider getting out of Google (NASDAQ: GOOG), Tesla (NASDAQ: TSLA), and Chipotle Mexican Grill (NYSE: CMG).

    "We’re selling everything that’s not nailed down in our portfolio,” Leon Black, the head of Apollo Global Management, told a more »

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