The recent derailment of the�Montreal, Maine, and Atlantic Railway�train in Lac Megantic, Quebec, caused�irrevocable damage on a small town just 10 miles from the U.S.-Canada border. The primary cargo of that train, crude from the Bakken region, has led to many questions regarding the practice of moving oil by rail. A recent report from Moody's says this accident could lead to several new restrictions that could drastically hurt rail shipments. This probably isn't a revelation, but let'slook at where the oil-by-rail story started and who will see the worst effects of a slowdown.�
For lack of a better form of transportation
The recent surge in rail shipments of oil got its start back in 2009, when EOG Resources (NYSE: EOG ) announced a deal with Burlington Northern Santa Fe to move crude away from the Bakken region to markets such as Cushing, Okla. At that time, only 110,000 barrels of oil per day could be moved away from the region through pipeline, and the expansion of production there meant that other methods would need to happen. While trucking to other markets was deemed uneconomical, the differences in spot prices between Bakken crude and West Texas intermediate made it worth the extra costs to ship by rail.
Top 5 Railroad Stocks To Watch Right Now: West Pharmaceutical Services Inc.(WST)
West Pharmaceutical Services, Inc. manufactures and sells components and systems for injectable drug delivery and plastic packaging, and delivery system components for the pharmaceutical, healthcare, and consumer products industries. The company?s Packaging Systems segment provides packaging components and systems used in injectable drug delivery. This segment offers elastomeric stoppers and discs, elastomeric plungers, needle shields, tip caps, aluminum seals and removable plastic buttons, elastomeric components, flashback bulbs and sleeve stoppers, elastomer and co-molded elastomer/plastic components, non-filled syringe components, and dropper bulbs, as well as pharmaceutical containers, closures, and dispensers. This segment also provides laboratory and other services comprising extractables and leachables testing, package/container testing, method development/validation, stability testing, process development, and problem resolution. Its Delivery Systems segment offer s healthcare devices, such as ready-to-use prefilled syringe systems and sterile vials. This segment also offers sterile devices and electronic patch injector systems; passive safety needle systems, disposable auto-injector systems, and safety systems for prefilled syringes; and contract manufacturing services for personal care and consumer products, including infant nurser assemblies, closures for beverage containers, and child-resistant and tamper-evident closures and dispensers. In addition, this segment engages in contract manufacturing and assembling injection molded components and devices for surgical, ophthalmic, diagnostic, and drug delivery systems. The company distributes its products through its sales force and distribution network, as well as through contract sales agents and regional distributors in the United States, Germany, France, and other European countries. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Lionville, Pennsylva nia.
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 West Pharmaceutical Services (NYSE: WST ) , whose recent revenue and earnings are plotted below.
Hot Trucking Companies To Buy Right Now: WisdomTree Emerging Markets Equity Income Fund (DEM)
WisdomTree Emerging Markets High-Yielding Equity Fund (the Fund) seeks to track the performance of the WisdomTree Emerging Markets High-Yielding Equity Index (the Index). The Index measures the performance of emerging market stocks with relatively high dividend yields. The Index is created by selecting the top 30% of Index constituents ranked by dividend yield from the WisdomTree Emerging Markets Dividend Index. Companies eligible for inclusion in the Index must be incorporated in and have their shares listed on a major stock exchange in Argentina, Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Israel, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand or Turkey. Companies must have paid at least $5 million in cash dividends on their common stock in the 12 months prior to the most recent Index measurement date. Companies are weighted in the Index based on regular cash dividends paid. The Index includes large-capitalization, mid-capitalization and small-capitalization securities.
The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Fund attempts to invest all, or substantially all, of its assets in the stocks that make up the Index. The Fund generally uses a representative sampling strategy to track the Index. The Fund�� investment advisor is WisdomTree Asset Management, Inc.
Advisors' Opinion:- [By George Putnam, Editor, New Generation Research, Inc.]
WisdomTree Emerging Markets Equity (DEM) takes a somewhat different approach because it focuses quite heavily on dividend yield.
As a result, the fund has an attractive 4.2% yield. Financial services is the fund's largest sector exposure, followed by energy, basic materials, and communications.
- [By Genia Turanova]
WisdomTree Emerging Markets Equity Income ETF (DEM) is designed to track the performance of the high-yielding subset of the dividend paying segment of 18 emerging-markets nations.
Hot Trucking Companies To Buy Right Now: PPL Corporation(PPL)
PPL Corporation, an energy and utility holding company, generates and sells electricity; and delivers natural gas to approximately 5.3 million utility customers primarily in the northeastern and northwestern U.S. The company operates in four segments: Kentucky Regulated, International Regulated, Pennsylvania Regulated, and Supply. The Kentucky Regulated segment engages in the generation, transmission, distribution, and sale of electricity; and the distribution and sale of natural gas to approximately 1.3 million customers in Kentucky, Virginia, and Tennessee. The International Regulated segment owns and operates electricity distribution businesses in the United Kingdom that deliver electricity to 7.7 million customers. The Pennsylvania Regulated segment delivers electricity to approximately 1.4 million customers in eastern and central Pennsylvania. The Supply segment owns and operates power plants to generate electricity using coal, uranium, natural gas, oil, and water res ources; markets and trades electricity and other purchased power to wholesale and retail markets; and acquires and develops domestic generation projects. It controls or owns a portfolio of generation assets of approximately 11,000 megawatts in Montana and Pennsylvania. As of December 31, 2010, the company?s distribution system included 649 substations with a capacity of 25 million kVA, 28,838 circuit miles of overhead lines, and 24,131 cable miles of underground conductors in the United Kingdom. It also operated 377 substations with a capacity of 31 million kVA, 33,122 circuit miles of overhead lines, and 7,368 cable miles of underground conductors in Pennsylvania. The company was founded in 1920 and is headquartered in Allentown, Pennsylvania.
Advisors' Opinion:- [By Justin Loiseau]
Oil continues to prove less and less useful for generation as prices head higher, and hydro represents a calculated decision to focus its energy portfolio elsewhere. PPL (NYSE: PPL ) announced this week that it has successfully completed a $209 million hydroelectric expansion project, increasing output 70% to 60 MW.
- [By Justin Loiseau]
PPL pilots new energy reduction program
Across the pond, PPL's (NYSE: PPL ) British utility Western Power Distribution is trying to get its commercial customers to cut consumption. The company announced this week that it will be offering 15 businesses financial incentives to reduce their overall electricity use and/or shift use to non-peak hours. While reduced demand might seem backwards for any business model, an electricity use reduction would allow PPL to forgo costly upgrades to its current electricity system. And, as the utility's energy efficiency project manager points out, carbon emission targets provide an additional reason to increase efficiencies where possible. - [By Justin Loiseau]
3. Power to the people
If the current royal regime is any evidence, George is going to be around for a long time to come. Although it's not as fun as a toy or as fast as a car, the prince needs to consider long-term income earners as well. British-American utility PP&L (NYSE: PPL ) puts electricity in the homes of his subjects, while offering a delectable 4.7% dividend on the side. With share prices still wobbling around recession-level lows, you and George could benefit from a long-term value grab as economies (eventually) pick up in the years to come.
Hot Trucking Companies To Buy Right Now: Vivo Participacoes S.A.(VIV)
Telecomunicacoes de Sao Paulo S.A.-TELESP provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Its services include local voice services, such as activation, monthly subscription, measured service, and public telephones; intraregional, interregional, and international long-distance voice services; data services comprising broadband services; pay TV services through direct to home satellite technology and land based wireless technology multichannel multipoint distribution service; and network services, such as interconnection and rental of facilities, as well as other services consisting of extended maintenance, caller identification, voice mail, cell phone blockers, computer support, and antivirus for Internet service subscribers. The company also offers multimedia communication services, such as audio, data, voice and other sounds, images, and texts and other information. In addition, it provides interc onnection services to cellular service providers and other fixed telecommunications companies through the use of its network. Further, the company offers telecommunications solutions and IT support designed to address the needs and requirements of companies operating various types of industries, including retail, manufacturing, services, financial institutions, and government. Telecomunicacoes de Sao Paulo S.A.-TELESP provides its products and services through person-to-person sales, telesales, indirect channels, Internet, and door-to-door sales. As of December 31, 2010, its telephone network included 11.3 million fixed lines in service, including residential, commercial, and public telephone lines; 3.3 million broadband clients; and 0.5 million pay TV clients. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil. Telecomunicacoes de Sao Paulo S.A.-TELESP is a subsidiary of Telefonica S.A.
Advisors' Opinion:- [By Jonathan Morgan]
Vivendi (VIV) SA climbed the most in two months as Qatar Telecom QSC said it raised $12 billion to finance its bid for the French media and telecommunications company�� stake in Maroc Telecom SA. Fiat SpA (F) advanced 4.4 percent after Italy�� industry minister offered support to keep its plants in the country. Club Mediterranee (CU) SA jumped the most on record after the French holiday-resort operator said it got a bid from two shareholders.
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