Mike Thiessen

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• Restructuring Plan Has Been Good for This Stock, But Will It Last?

  By Mike Thiessen - May 23, 2013 | Tickers: CQB, DOLE, FDP

  Chiquita Brands International (NYSE: CQB) finds itself in the throes of a major restructuring plan that has sent its stock price soaring by more than 40 percent. The plan was announced in response to years of sagging profitability, cost pressures and internal turmoil. Although the produce business is relatively uncomplicated, it is a notoriously low-margin affair that can be greatly affected by weather, transportation problems, fuel costs, labor unrest, and more »

• Is It an Oversold Value Pick or an Unsafe Falling Knife?

  By Mike Thiessen - May 23, 2013 | Tickers: ABX, GG, KGC

  Toronto-based mining giant Barrick Gold Corporation (NYSE: ABX) has not had a very good start to the year. In addition to intense downward pressure on gold prices that has sent stocks of virtually every gold-exposed miner into the basement, Barrick has had to deal with some regulatory and debt-related setbacks. Recently, the company announced that it would be suspending production at a supposedly lucrative mine in Chile due to a more »

• With Absurd Discount, Solid Yield and Industry Tailwinds, Is This A Steal?

  By Mike Thiessen - May 23, 2013 | Tickers: ALJ, VLO, WNR

  Western Refining (NYSE: WNR) is a small, often overlooked refiner that operates primarily in the oil-soaked markets of Texas and the American Southwest. Although the company rarely attracts attention from high-flying fund managers or Wall Street analysts, it is noteworthy for several reasons. For starters, it has a solid dividend yield of 1.5 percent and recently issued a $1 special dividend that amounted to a 5 percent payout at more »

• After Impressive Earnings Report, Is It Still Cheap?

  By Mike Thiessen - May 23, 2013 | Tickers: CSCO, HPQ, JNPR

  Like many established technology companies, Cisco (NASDAQ: CSCO) has developed a reputation as a stable but stodgy firm that issues regular dividend payouts and rarely makes exciting or noteworthy announcements. However, the company's most recent earnings report provided a momentary break from its ho-hum stream of news releases and corporate announcements. The report exceeded market-watchers' expectations by a substantial degree and indicated that Cisco still has some life left more »

• After Rapid Rise, Are These Solar Companies Setting the Stage for Disaster?

  By Mike Thiessen - May 23, 2013 | Tickers: FSLR, SCTY, SPWR

  Over the past few weeks, Solar City (NASDAQ: SCTY), SunPower Corporation (NASDAQ: SPWR) and First Solar (NASDAQ: FSLR) have seen tremendous market capitalization jumps. All three of these firms have outperformed the broader market by several orders of magnitude, and they have shown few signs of slowing down their seemingly inexorable rise. However, little has changed in a fundamental sense: Solar firms are still losing money at a brisk pace more »

• Lowe's and Home Depot: What's the Difference?

  By Mike Thiessen - May 23, 2013 | Tickers: HD, LOW, SHLD

  Recent quarterly reports from two of the United States's largest home-improvement companies has drawn renewed attention to their apparently divergent fortunes. Despite nearly identical business structures, market geographies and penetration strategies, these two firms do not seem to be playing on a level field. According to its most recent report, Lowe's (NYSE: LOW) saw worse-than-expected sales and profit figures during the first quarter. Meanwhile, Home Depot (NYSE: HDmore »)

• More Upside With This Company?

  By Mike Thiessen - May 23, 2013 | Tickers: IFT, LPHI, UNM

  Life insurance and structured settlements provider Imperial Holdings (NYSE: IFT) has had an interesting couple of years. After a dramatic FBI raid tied to questionable practices at its now-shuttered cash-advance division, the company's stock price took a sharp, lasting hit. At the time, some market-watchers speculated that the potentially illegal activities of some Imperial staffers would bring the entire company down. Fortunately, an FBI investigation eventually determined that the more »

• This Company Looks to Return Capital to Shareholders in a Big Way

  By Mike Thiessen - May 23, 2013 | Tickers: GD, NOC, BA

  Despite lingering fears over cuts to the U.S. defense budget and the predicted cyclical slowdown in the heavy equipment industry, Falls Church, Virginia-based Northrop Grumman (NYSE: NOC) recently announced two definitive moves that will return capital to its shareholders and could boost its stock price over the long term. The first involves the expansion of a share repurchase program that will eventually authorize the buyback of $5 billion in more »

• Spinoff May Hold Value for New Shareholders

  By Mike Thiessen - May 23, 2013 | Tickers: NLY, NRZ, NCT

  Although it had been expected for some time, the recent announcement that New York-based REIT Newcastle Investment Corporation (NYSE: NCT) had completed its spin-off of New Residential Corporation (NYSE: NRZ) was greeted with enthusiasm by investors who had followed the spin-off process. 
  
  Although Newcastle's stock did take a significant tumble on the trading day that followed the transaction's formal completion, this should not be taken to indicate a more »

• Spinoff May Breathe New Life into the Data Storage Industry

  By Mike Thiessen - May 23, 2013 | Tickers: BMC, CA, CPWR

  Detroit-based application software firm Compuware (NASDAQ: CPWR) has drawn new-found attention with its announcement that it would spin off its data storage and management subsidiary as a separate company. Known as Covisint, the subsidiary would trade on the Nasdaq Exchange under the ticker symbol "COVS." Although details about the IPO remain sketchy, Compuware has stated publicly that it hopes to raise at least $100 million through this transaction.
  
  Although Compuware more »

• Merger Offers Synergies and Profit Potential

  By Mike Thiessen - May 23, 2013 | Tickers: ASCA, BYD, PNK

  With the recent announcement that the deal had received an all-important blessing from the Nevada Gaming Commission, the $870 million proposed merger between Pinnacle Entertainment (NYSE: PNK) and Ameristar Casinos (NASDAQ: ASCA) is now much more likely to go through as planned. As one of the largest recent consolidation moves in the tepid gaming industry, this merger offers some important synergies and may provide investors with a powerful profit opportunity more »

• Will $4 Billion Asset Sale Turn This Company into a Solid Investment?

  By Mike Thiessen - May 23, 2013 | Tickers: APC, APA, BP

  In the wake of disappointing production numbers and a mediocre earnings report, oil exploration firm Apache Petroleum (NYSE: APA) has announced plans to sell up to $4 billion in assets during the second half of 2013. According to its release, the company plans to use the proceeds from these non-core asset sales to repair its sagging balance sheet and fund a major stock buyback program that could reverse months of more »

• Theravance Looks to Reward Shareholders by Splitting Into Two Distinct Companies

  By Mike Thiessen - May 15, 2013 | Tickers: GSK, PDLI, THRX

  California-based Theravance's (NASDAQ: THRX) announcement that it would split into two distinct companies has drawn a sharply positive reaction from investors. 

  As part of the split, the pharmaceutical company looks poised to turn its current drug-marketing joint venture with London-based GlaxoSmithKline (NYSE: GSK) into an independent firm. Meanwhile, it will create a development-focused biopharmaceutical company out of its existing R&D division. Whereas the first firm could generate long-term more »

• Following Up an Acquisition With an Even Larger Merger?

  By Mike Thiessen - May 15, 2013 | Tickers: ACT, TEVA, VRX

  News that Montreal-based Valeant Pharmaceuticals (NYSE: VRX) was in talks to merge with Parsippany, New Jersey-based Actavis (NYSE: ACT) emerged barely a week after the completion of the company's tender offer for Obagi Pharmaceuticals (OMPI). Although the deal remains in its early stages and has been the subject of wild and conflicting rumors, it could prove to be one of the largest pharmaceutical mergers in recent years. Its current more »

• Merger Looks To Create Formidable Shale Gas Hybrid

  By Mike Thiessen - May 15, 2013 | Tickers: CMLP, NRGY, MMLP

  In early May, two large master limited partnerships with extensive footprints in the booming North American shale gas industry agreed to a $7 billion merger that could have major implications for the entire sector. Kansas City-based Inergy (NYSE: NRGY) and Houston-based Crestwood Midstream Partners (NYSE: CMLP) look poised to tie the knot by the end of the third quarter of 2013. Although some shareholders who are unhappy with the proposed more »

• Goldman Aquires This Company At An Attractive Valuation

  By Mike Thiessen - May 15, 2013 | Tickers: EBIX, GS

  Goldman Sachs (NYSE: GS) announced a takeover bid for Ebix (NASDAQ: EBIX) to take the company private for $20 per share, close to a 10% premium to the closing price the prior day. Ebix has faced scrutiny for their accounting practices and was called a “house of cards” in a blog report on the firm that spurred an investigation. The company was discussed in an earlier post on this website more »

• What Does the Business Unit Sale Mean for the Big Merger?

  By Mike Thiessen - May 15, 2013 | Tickers: ARB, NLSN, OCX

  Market-watchers have thus far reacted positively to the news that Canadian private equity company Onex Corporation (TSX: OCX) and media measurement giant Nielsen Holdings (NYSE: NLSN) had agreed to a $950 million deal that would see Onex purchase Nielsen's exposition-and-convention business. Inked in early May of 2013, the deal could have far-reaching implications for the two companies' shareholders as well as for Nielsen's pending merger with radio marketing more »

• A Big Shareholder Going Against This Potential Deal

  By Mike Thiessen - May 14, 2013 | Tickers: FCX, NEM, PXP

  The already tenuous proposed merger deal between Phoenix-based mining giant Freeport McMoRan (NYSE: FCX) and Houston-based Plains Exploration & Drilling Corporation (NYSE: PXP) took another hit with the surprise announcement that a major Plains shareholder would not vote for the deal in its current form. The shareholder is a privately held asset management firm known as CR Intrinsic. Since CR's opinion is highly respected within the investment community, its announcement more »

• Special Dividend and Ongoing Cash Distribution

  By Mike Thiessen - May 14, 2013 | Tickers: DEPO, ENZN, SNTS

  Enzon Pharmaceuticals (NASDAQ: ENZN) announced on April 23, 2013 that it completed a review of its operations announced at the end of last year. As part of the review of potential asset sales, or a sale of the company, it announced a special dividend of $1.60 per share and periodic royalty dividends. It will distribute the special dividend to shareholders as of May 7, 2013 and will continue to more »

• Does Its Attractive Valuation Mean a Solid Investment?

  By Mike Thiessen - May 14, 2013 | Tickers: BHE, FLEX, JBL

  Benchmark Electronics (NYSE: BHE) has lately attracted the attention of value-seeking investors thanks to a price-to-book ratio of just .85. Unlike many companies that have relatively low valuations, the company has posted eye-popping revenue growth and operates in a stable, mature industry that continues to see decent performance.

  On the other hand, a closer look at Benchmark's balance sheet may offer some cause for concern. Investors who habitually invest more »

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