Monday, June 29, 2015

Stocks Crater on Greece Fears

The S&P 500 Index fell 43.85 on Monday,down 2.09%,on worries that Greece might leave the Euro-zone,or might at least cause unfortunate ripple effects throughout the global economy.The country is expected to miss a Tuesday debt payment of 1.84 billion dollars to the IMF.Technically,that would not be a default,since the IMF payment does not have the status of a bond coupon payment,for instance.Still,it is plenty bad for the stock market,as is the unknown endpoint of Greece's tortured negotiations with its creditors,and the Sunday referendum basically on whether Greece should abandon the euro for its old currency,the drachma.
The run on Greek banks could become contagious,spreading to Spain,Portugal and even Italy.If that happens,the US economy,with its close ties to Europe,could suffer as well.
The market was shaken by S&P's opinion that the probability of the so-called Grexit is 50%,and a commercial default is inevitable within six months.Greece's credit rating was also lowered by S&P to CCC-.
Investors sought refuge in gold,which rose 0.52%,while Treasury bonds were basically flat and utility stocks fell less than the broader market.*
Utilities Select Sector SPDR ETF (XLU),Market Vectors Gold Miners ETF (GDX),SPDR Gold Trust (GLD),iShares 7-10 Year Treasury Bond ETF (IEF)

Monday, June 22, 2015

Great Looking! Bombardier BD700 Global 6000 Take-Off at Bern Airport

Great Looking! Bombardier Global 5000 * World Noble * Take-Off at Bern A...

Lockheed Martin Team Makes Bid For JSTARS Aircraft Contract

Lockheed Martin,Raytheon and Bombardier have teamed up on a joint bid to deliver a low risk,affordable solution for the US Air Force JSTARS Recapitalization Program.The firms promise to provide the Air Force with capabilities superior to the current JSTARS,with a true open architecture that allows the government to own the technology baseline for further upgrades and reduce lifecycle cost.
Lockheed Martin will be lead systems integrator for the project;Raytheon will bring their experience with ground surveillance,intelligence,surveillance and reconnaissance,mission systems integration and JSTARS communications to the team.Bombardier will provide its ultra-long-range Global business jet platform,less costly to operate than a modern airliner,and uniquely suited to the JSTARS mission by allowing onboard radar to see further and deeper into valleys and survey the battlespace for long periods of time without refueling,Lockheed Martin said in a press release.
Bombardier,based in Montreal,added that the track record it built over the past years with the Battlefield Airborne Communications Node (BACN) programme for the Air Force using the Bombardier Global platform makes it very well positioned in this market segment.A concept illustration depicts the Global business aircraft air frame with several antennae on the undersides of the wings,plus radomes above and beneath the fuselage.
The JSTARS mission,standing for Joint Surveillance Attack Radar System,is currently carried out by Boeing 707 E-8C aircraft.These aging planes have been heavily utilised since the 9-11 attacks,averaging 19.4 hours per day.
The Air Force needs ground-moving target indicators,said Air Force Chief of Staff General Mark Welsh.That intelligence has been phenomenally successful:all the combatant commanders want it.*
Lockheed Martin (LMT),Raytheon (RTN),Bombardier (TSX:BBD:B)

Monday, June 15, 2015

Looking At Big Oil In Light of Crude's Price Increase

Since oil prices bottomed on 17 March,closing at 43.88 bbl for NYMEX crude and 53.94 bbl for Brent,analysts have been re-examining oil industry profit forecasts for Q2,raising the estimates as prices climbed back up.Now they are calling for 20% higher profits on average.Shares of most oil industry stocks are predicted to rise 17% over the next 18 months.
For example,oil services firm Transocean has an earnings estimate that has been raised a hefty 80.9%;while Exxon Mobil's has been raised 13.7 % and Chevron's earnings estimate has been hiked 8.7%.Transocean stock is considered overvalued at this time,so it has an average analysts' recommendation of underweight.Exxon has an average recommendation of hold with a price target of 94.35,and Chevron has a hold rating as well and a price target of 113.20.
Transocean has exceeded its price target of 14.19;while Exxon and Chevron are still below theirs-they have room to climb.On the dividend front,Transocean pays 0.85%;Exxon 3.49%;and Chevron leads the pack with a 4.31% payout.*
Today,15 June,NYMEX crude closed at 59.61,and Brent at 62.70.Transocean stock closed at 17.61;Exxon at 83.72;and Chevron at 99.29.All three stocks,as well as crude oil itself,were down on the day from Greek default fears and an oil supply glut.While Transocean stock has risen sharply since the price of oil bottomed out on 17 March,rising from 14.02 up to today's 17.61,Exxon's stock has been flat and Chevron's has declined 3.2%.Only Transocean stock has responded to the oil price climb as of yet,but to the point of rising too much.*
Transocean (RIG),Exxon Mobil (XOM),Chevron (CVX)

Monday, June 8, 2015

Sikorsky S-92 for X-Plane

Will Airbus Buy Sikorsky?

If United Technologies decides to sell its Sikorsky Aircraft subsidiary in a few months,one of the bidders could be Airbus,Reuters reported today.The CEO of Airbus Group,Allan McArtor,said we are interested to see what UT does with Sikorsky.Airbus is interested in acquiring anything in the areas of defence,space,helicopters,cyber security and 3D manufacturing,Mr.McArtor noted.Sikorsky is valued at 8 billion dollars.
Other possible bidders for the helicopter specialist could include Lockheed Martin,which is already collaborating with Sikorsky on its VH-92 Marine One presidential helicopters,and General Dynamics,which manufactures the Gulfstream line of business jets.Indeed,both Lockheed Martin and Boeing have already voiced their interest in a Sikorsky sale.
Airbus is currently manufacturing helicopters in its Airbus Helicopter division,as well as developing,marketing and selling both civilian and military helicopters.Airbus operates as Airbus Commercial and Airbus Space and Defence,producing commercial jet aircraft,military transport aircraft and special mission aircraft,commercial space launch vehicles,satellites,defence systems and electronics and related services.The France-based company was formerly known as European Aeronautic Defence and Space Company NV,or EADS.*
Airbus Group SE (AIR.PA),Lockheed Martin (LMT),General Dynamics (GD),United Technologies,Boeing (BA)

Monday, June 1, 2015

Media Mergers on the Hotplate

In a media and entertainment mega deal,cable TV titan Charter Communications,guided and backed by billionaire investor and Liberty Media magnate John Malone,is buying Time Warner Cable for 78.7 billion dollars in cash and stock,while at the same time putting fellow provider Bright House Networks in its shopping cart for 10.4 billion.From our perspective,said Troy Gayeski of Skybridge Capital,this deal is a great vindication of the strategy.Most of these deals are still accretive,which is a good sign there will be more deals.The US had a long hiatus in deal activity,but by late 2013,we started to see the boom come back.Europe is still grappling with slow growth,but now management teams are seeing deals are being rewarded.You're going to see inter-European consolidation.Italy has relaxed bank consolidation rules.The trend will be for higher deal flow,whether inter-European or with overseas partners.*
Also in the media and entertainment sector,Europe's Altice SA,based in Luxembourg,having just acquired American cable operator Suddenlink,is believed to be shopping for still more cable assets,a potential candidate being Bethpage,New York's Cablevision Systems Corporation.Charter rival Comcast has itself recently tried yet failed to acquire Time Warner Cable,being rebuffed by antitrust regulators.Some fear the lessened number of competitors will mean higher prices for customers.*
The expanded version of Charter would reportedly be called "New Charter." It would have a combined 24 million customers,serving about 18 million of those broadband Internet customers on 25 Mbps or less,and 16 million video subscribers,or about 17% of all video subscribers.New Charter would own about 86% of Bright House Networks;Advance/Newhouse will own the rest.Charter Communications' CEO Tom Rutledge would stay in that role for the new company.
All three of the prospectively merged companies offer Digital TV,High Speed Internet and Home Phone services.Time Warner Cable additionally brings assets in the form of cable advertising,regional sports networks,plus local news channels by way of Time Warner Cable News.TWC is the fifth largest landline telephone provider as well.It serves the big markets of Los Angeles,San Diego,New York City,Dallas,Charlotte,Cleveland and Cincinatti,among others.Indeed,TWC is larger than its acquirer Charter Communications.
New Charter would be the second largest cable TV company,after Comcast,and the third largest subscription TV provider,after AT&T/Direct TV and Comcast,pending regulatory approval of the AT&T/Direct TV merger.*
Time Warner Cable Inc (TWC),Bright House Networks Inc (BHN),Charter Communications Inc (CHTR),SPDR S&P 500 ETF (SPY),Liberty Media Corp (LMCA),Cablevision Systems Corp (CVC)