After a surprising burst over the last week that sent shares to record highs once again, Wall Street fell back slightly today as the Dow Jones Industrial Average (DJINDICES: ^DJI ) closed down 32 points or 0.2%. Coca-Cola (NYSE: KO ) disappointed in its earnings report, as the beverage giant dropped 1.9%, the blue chips' worst performer today. The secular decline in U.S. soda consumption seems to be finally catching up with the world's most valuable brand, as unadjusted profits fell 4%. In addition to weak U.S. sales, the company blamed bad weather, including cold and wet conditions in the U.S. and flooding in Europe, for the poor quarter. Soda volume fell by 4% in North America, but the company still finished with an adjusted earnings per share of $0.63, in line with estimates. Revenue was down 2.5% to $12.75 billion, missing estimates of $12.95 billion.
On the economic slate, the June consumer price index was up 0.5%, above expectations, but the core rate grew just 0.2%, which excludes the volatile food and energy categories, indicating that inflation is under control. Last month's figures for industrial production and capacity utilization came in essentially in line with estimates, and the National Association of Home Builders' Housing Market Index jumped to 57, ahead of expectations of 51, indicating that the housing market remains strong despite rising interest rates.
Top Valued Companies For 2015: Artek Exploration Ltd (ARKXF.PK)
Artek Exploration Ltd. (Artek) is a junior oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves in western Canada. Artek's principal properties include Peace River Arch, Alberta; Deep Basin, Alberta and British Columbia; Inga/Fireweed, British Columbia, and Central Alberta. During the year ended December 31, 2011, the Company drilled six gross (3.7 net) wells, including two gross (1.6 net) oil wells and four gross (2.1 net) natural gas wells. On June 20, 2012, it had drilled and completed its second of a seven horizontal well program (60% working interest) at its Doig natural gas and condensate pool in the Inga area of British Columbia. On January 1, 2012, the Company divested 33% of its non-operated oil and gas assets in the Leduc Woodbend area. In August 2013, the Company announced that it has completed the acquisition of Fireweed asset. Advisors' Opinion:- [By Value Digger]
As peers, I selected Artek Exploration (ARKXF.PK), RMP Energy (OEXFF.PK), Synergy Resources (SYRG) and Magnum Hunter Resources (MHR). The first two firms trade also on the main Toronto board under the tickers RTK.TO and RMP.TO respectively. These peers comply with the following criteria:
Top 5 Energy Stocks To Buy For 2014: Renewable Energy Group Inc (REGI)
Renewable Energy Group, Inc., incorporated in August 2006, is a producer of biodiesel in the United States. The Company is engaged in each aspect of biodiesel production, from acquiring feedstock, managing construction and operating biodiesel production facilities to marketing, selling and distributing biodiesel and its co-products. During the year ended December 31, 2011, the Company sold approximately 150 million gallons of biodiesel. As of December 31, 2011, the Company operated a network of six biodiesel plants, with an aggregate production capacity of 212 million gallons per year. On July 12, 2011, the Company acquired SoyMor Biodiesel, LLC (SoyMor), which has 30 million gallons per year biodiesel production facility in Albert Lea, Minnesota. In January 2012, it exercised its option to purchase the 60 million gallons per year facility in Seneca, Illinois, which it operated under a lease. In August 2013, the Company acquired biodiesel plant in Mason City, Iowa. In January 2014, Renewable Energy Group Inc acquired renewable chemical technology developer LS9, Inc.
The Company produces its biodiesel from a range of feedstocks, including inedible animal fat, used cooking oil and inedible corn oil. It also produces a smaller portion of its biodiesel from virgin vegetable oils. It owns biodiesel production facilities with capacities consisting of 12 million gallons per year facility in Ralston, Iowa; 35 million gallons per year facility near Houston, Texas, or the Houston facility; 45 million gallons per year facility in Danville, Illinois, and 30 million gallons per year facility in Newton, Iowa.
The Company competes with Archer Daniels Midland Company, Cargill, Incorporated, Louis Dreyfus Commodities Group, Ag Processing Inc., Mansfield, Astra, Gavilon, Tenaska, ED&F Man, Dynamic Fuels, LLC, Syntroleum Corporation, Tyson Foods, Inc., Diamond Green Diesel, LLC and Darling International.
Advisors' Opinion:- [By Maxx Chatsko]
RINs are created with each lot of biofuels produced and act as a way for the industry to track production. They are normally sold with the corresponding amount of biofuels, but can be sold on secondary markets without a physical volume to back it up. Speculation by third parties and fear of running into the 10% ethanol blend wall in 2013 and 2014 caused prices to spike. The volatility may continue for the medium term, but investors may be able to find solace in the country's leading biodiesel producer Renewable Energy Group (NASDAQ: REGI ) . Fool contributor Maxx Chatsko explains why in the following video.
- [By Roberto Pedone]
Renewable Energy Group (REGI) is a producer of biodiesel in U.S. This stock closed up 11.5% at $15.59 in Wednesday's trading session.
Wednesday's Volume: 1.59 million
Three-Month Average Volume: 634,616
Volume % Change: 235%From a technical perspective, REGI exploded higher here right off its 50-day moving average of $13.83 with heavy upside volume. This move pushed shares of REGI into breakout and all-time high territory, since the stock flirted with some near-term overhead resistance levels at $14.75 to its former all-time high at $15.71. At last check, REGI closed near the highs of the day at $15.75 and volume was well above its three-month average action of 634,616 shares.
Traders should now look for long-biased trades in REGI as long as it's trending above its 50-day at $13.83 and then once it sustains a move or close above its new all-time high of $15.75 with volume that's near or above 634,616 shares. If we get that move soon, then REGI will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $22.
- [By Maxx Chatsko]
Renewable Energy Group (NASDAQ: REGI ) The nation's largest biodiesel producer has been one of my favorite companies to watch in the last year. It appears that the market is finally giving the company's $1 billion in annual revenue a reasonable value. A retroactively instated batch of blending credits from 2012 certainly helped to boost first-quarter income to a record $46.4 million, or a profit margin of 14%. Of course, uncertainty in mandates and production volume obligations seems to punish REG at the end of each year. The nation has plenty of overcapacity to switch on -- or export -- and biodiesel is far from facing the blending constraints of ethanol. So I think the company's future is pretty safe for the time being.
- [By Nickey Friedman]
Other biofuel companies
Unlike KiOR, Renewable Energy Group (NASDAQ: REGI ) and Green Plains Renewable Energy (NASDAQ: GPRE ) are ending the year with stock prices at more than double where they started it due to their excellent operational performance. For example, last quarter Renewable Energy Group reported revenue leaped 42% to $458.4 million. Net income had a dramatic turnaround, from a loss of $6.9 million to positive $78.5 million or $2.31 per share, though $42.1 million of that was an IRS tax benefit. Analysts expect Renewable Energy Group to report positive EPS of $1.66 next year while KiOR is expected to lose nearly a buck per share.
Top 5 Energy Stocks To Buy For 2014: Liberty Coal Energy Corp (LBTG)
Liberty Coal Energy Corp, incorporated on August 31, 2007, is an exploration-stage company. The Company is a precious metal mineral exploration, development and production company. The primary business focus of the Company is to acquire, explore and develop coal properties in North America. On February 1, 2012, the Company entered into a letter of intent for the acquisition of private mineral leasehold rights to certain coal mining property in Owsley County, Kentucky with AMS Development LLC. and Colt Resources, Inc.
The Owsley property covers approximately 1,000 acres and has 3,600,000 tons of coal recoverable by surface and high wall (auger) methods. As of September 31, 2011, the Company had not earned any revenues.
Advisors' Opinion:- [By Peter Graham]
On Friday, small cap mining stocks Maverick Minerals Corp (OTCMKTS: MVRM) and Liberty Coal Energy Corp (OTCMKTS: LBTG) plus oil stock Gray Fox Petroleum Corp (OTCBB: GFOX) sank 30.9%, 16.67% and 11.2%, respectively. However, only one of these stocks appears to have been the subject of some kind of paid promotion in the form of an investment in some shares. So will these three small cap mining or oil stocks keep coming up empty for investors this week? Here is a closer look:
Top 5 Energy Stocks To Buy For 2014: QEP Midstream Partners LP (QEPM)
QEP Midstream Partners, LP (QEP), incorporated on April 19, 2013, is a limited partnership formed by QEP Resources, Inc. to owns, operates, acquires and develops midstream energy assets. The Company�� primary assets consist of ownership interests in four gathering systems and two Federal Energy Regulatory Commission (FERC)-regulated pipelines, through which it provides natural gas and crude oil gathering and transportation services. The Company�� assets are located in, or are within close proximity to, the Green River Basin located in Wyoming and Colorado, the Uinta Basin located in eastern Utah, and the portion of the Williston Basin located in North Dakota. As of December 31, 2012, the Company�� gathering systems had 1,475 miles of pipeline and an average gross throughput of 1.8 million british thermal units per hour of natural gas and 18,224 barrels of crude oil.
Green River System
The Company�� Green River System, located in western Wyoming, consists of three complimentary systems owned by Green River Gathering, Rendezvous Gas and Rendezvous Pipeline and gathers natural gas production from the Pinedale, Jonah and Moxa Arch fields. In addition to gathering natural gas, the system also gathers and stabilizes crude oil production from the Pinedale Field, transports the stabilized crude oil to an interstate pipeline interconnect, and gathers and handles produced and flowback water associated with well completion activities in the Pinedale Field. The Green River Gathering assets are comprised of 405 miles of natural gas gathering pipelines, 61 miles of crude oil gathering pipelines, 81 miles of water gathering pipelines and a 60-mile, FERC-regulated crude oil pipeline located in the Green River Basin. The Rendezvous Gas assets consist of three parallel, 103-mile high-pressure natural gas pipelines, with 1,032 million cubic feet per day of throughput capacity and 7,800 basic hydrogen peroxide of gas compression. Rendezvous Pipeline�� sole asset is a 21-mile, FERC-regu! lated natural gas transmission pipeline that provides gas transportation services from QEP�� Blacks Fork processing complex in southwest Wyoming to an interconnect with the Kern River Pipeline.
Vermillion Gathering System
The Vermillion Gathering System consists of gas gathering and compression assets located in southern Wyoming, northwest Colorado and northeast Utah, which, when combined, include 454 miles of low-pressure, gas gathering pipelines and 23,197 basic hydrogen peroxide of gas compression. The Vermillion Gathering System is primarily supported by life-of-reserves and long-term, fee-based gas gathering agreements with minimum volume commitments, which are designed to ensure that it will generate a certain amount of revenue over the life of the gathering agreement by collecting either gathering fees for actual throughput or payments to cover any shortfall. The primary customers on our Vermillion Gathering System include Questar, Samson Resources Corporation (Samson Resources), QEP and Chevron USA, Inc. (Chevron).
Three Rivers Gathering System
Three Rivers Gathering is a joint venture between QEP and Ute Energy Midstream Holdings, LLC (Ute Energy) that was formed to transport natural gas gathered by Uintah Basin Field Services, L.L.C., an indirectly owned subsidiary of QEP (Uintah Basin Field Services), and other third-party volumes to gas processing facilities owned by QEP and third parties. The Three Rivers Gathering System consists of gas gathering assets located in the Uinta Basin in northeast Utah, including approximately 50 miles of gathering pipeline and 4,735 basic hydrogen peroxide of gas compression.
Williston Gathering System
The Williston Gathering System is a crude oil and natural gas gathering system located in the Williston Basin in McLean County, North Dakota. The Williston Gathering System includes 17 miles of gas gathering pipelines, 17 miles of oil gathering pipelines 239 basic hydrogen peroxide o! f gas com! pression, and a crude oil and natural gas handling facility, located primarily on the Fort Berthold Indian Reservation.
The Company competes with Enterprise Products Partners, L.P., Western Gas and The Williams Companies, Inc.
Advisors' Opinion:- [By Jon C. Ogg]
QEP Midstream Partners L.P. (NYSE: QEPM) was started as Buy at Janney Capital, and note that four other firms started coverage earlier this week.
ServiceNow Inc. (NYSE: NOW) was started as Buy with a $55 price target at Canaccord Genuity.
- [By Dimitra DeFotis]
But things aren’t all bad. A spate of initial public offerings traded at nice prices Friday. Among them was QEP Midstream Partners (QEPM), an energy master limited partnership. (Press release here). More on IPOs from Bloomberg here.
- [By Lauren Pollock]
QEP Resources Inc.(QEP) plans to separate its midstream business, QEP Field Services Co., into a separate entity, including its interest in QEP Midstream Partners LP(QEPM).
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