Frontier Communications (NYSE:FTR) has just recently hit a 34-year low of $1.20. This pummeling took place after a less-than-sterling Q1 report. It is obvious that integrating its 2016 purchase of Verizon (NYSE:VZ) properties has not gone as smoothly as it had anticipated. It is not unlike the problems the company had with a previous Verizon purchase in 2010. However, I believe most of the integration problems are behind it.
In this article, I will explain why the Frontier Mandatory Convertible Preferred Debenture (FTRPR) due June 28, 2018, is an excellent investment to make for the next 14 months or so.
1. Integration of two large service businesses like Frontier and Verizon is always problematic.
Frontier basically doubled its revenue by buying these Verizon properties in California, Texas and Florida (CTF). It included both wireline and fiber assets. When you do an acquisition like this, you have many unhappy people. Employees are unhappy because they know some are going to be laid off. Customers are unhappy because they don’t know what will happen to their service and pricing. Then you have corporate problems integrating different systems (management, hardware, software, policy, HR) and trying to standardize corporate cultures. The whole transition period is full of stress, starting with the customers and ending at the executive suite.
stock buying: Huntington Ingalls Industries, Inc.(HII)
- [By WWW.MONEYSHOW.COM]
Huntington Ingalls Industries (HII) is the largest repairer and ship builder for the U.S. Navy and U.S. coast guard, giving the company a near monopoly on these government contracts (which is why their return on equity is north of 27%).
- [By Rich Smith]
Huntington Ingalls’ (NYSE:HII) Ford-class supercarrier seems one likely suspect — and at $14 billiona pop, this gigantic aircraft carrier offers a big potential target for Trump’s next tweet storm.
- [By Rich Smith]
As details about the Pentagon’s plan have emerged, it’s become clear that this will be a sizable program, amounting to perhaps $1 trillion in spending over 30 years — not just to upgrade the Minuteman missiles, but also to buy new B-21 stealth bombers from Northrop Grumman (NYSE:NOC)and have General Dynamics (NYSE:GD) and Huntington Ingalls (NYSE:HII) design an entirely new class of ballistic missile submarines (to be known as the “Columbia class.”)
stock buying: Tandy Leather Factory, Inc.(TLF)
- [By Lee Jackson]
These companies also reported insider buying last week: Armour Residential REIT Inc. (NYSE: ARR), Ducommun Inc. (NYSE: DCO), PJT Partners Inc. (NYSE; PJT), Sonic Automotive Inc. (NYSE: SAH)and Tandy Leather Factory Inc. (NASDAQ: TLF).
stock buying: Reliance Steel & Aluminum Co.(RS)
- [By Elizabeth Balboa]
This is mostly triggered by artificial boosts in steel prices caused by trade regulation. Rising costs are positive for the steel industry and players like United States Steel Corporation (NYSE: X), AK Steel Holding Corporation (NYSE: AKS) and Reliance Steel & Aluminum Co (NYSE: RS), but they’re ultimately injurious to those reliant on steel products manufacturers of canned goods, farm equipment, machinery and appliances.
stock buying: International Business Machines Corporation(IBM)
- [By Sreekanth Anasa]
Given that the company is still at some distance on the road to profitability, it needs to maintain its strong revenue growth. Once again the company needs to show strong growth in deferred revenue to assure investors about its long-term growth story. The 77% YoY growth indeferred revenue to $526 million in last quarter earnings had outpaced its Q4 revenue growth of 62%. This has also been boosted by the impressive 87% YoY rise in the customer base. The company’s software segment gaining traction has got investors excited since pure software play means higher margins than its core hardware business. Thesoftware only bookings grew by 96% YoY in the fourth quarter forming 17% of the total bookings. The impact of the OEM agreements with IBM (NYSE:IBM) for software and Pure software agreement with Cisco (NASDAQ:CSCO) and Hewlett Packard Enterprises (NYSE:HPE) hardware is also likely to be closely watched. With DRAM prices expected to rise further, the increase in software moat could be very much welcomed by the investors.
- [By Brian Mathews]
International Business Machines Corp (NYSE: IBM) is a well-recognized brand that specializes in all facets of information technology, such as software, hardware and research. IBM has always been a major player in the technology sector and is considered a “blue-chip” stock. However, it has suffered declining revenues over the last few quarters mostly to currency fluctuations. Now that it has stabilized, IBM looks to grow in 2016. Mainframes are still popular among financial services and the telecom industry, from which IBM receives a fair amount of revenue. Also, mainframe growth has been increasing in the emerging markets, and IBM faces little competition based on its global presence. IBM’s largest potential stems from its $138 billion services backlog and existing relationships, which provide great insight into customer needs and translate into new product development. With IBM’s dividend of 3.3%, investors can afford to wait while IBM hits its target price of $170 over the next year.
- [By WWW.KIPLINGER.COM]
International Business Machines Corp. (IBM) is another classic tech name trying to get with the times.
Happily for shareholders, last quarters report showed good progress with its turnaround plan.
stock buying: Renesola Ltd.(SOL)
- [By Monica Gerson]
ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 9.76 percent to $1.35 in pre-market trading. ReneSola reported Q1 earnings of $0.06 per share on revenue of $260.7 million.
- [By Monica Gerson]
Wall Street expects ReneSola Ltd. (ADR) (NYSE: SOL) to report a quarterly loss at $0.04 per share on revenue of $256.05 million. ReneSola shares gained 2.50 percent to close at $1.23 on Friday.
- [By Monica Gerson]
ReneSola Ltd. (ADR) (NYSE: SOL) is estimated to report a quarterly loss at $0.04 per share on revenue of $256.05 million.
America’s Car-Mart, Inc. (NASDAQ: CRMT) is projected to post its quarterly earnings at $0.58 per share on revenue of $149.13 million.
- [By Lisa Levin] Gainers
Aimmune Therapeutics Inc (NASDAQ: AIMT) shares jumped 35 percent to $34.64 in response to failed DBVT peanut allergy trial.
Exactech, Inc. (NASDAQ: EXAC) shares surged 30.9 percent to $41.88 after the company agreed to be acquired by TPG Capital for $42 per share in cash.
Dextera Surgical Inc (NASDAQ: DXTR) shares climbed 27.6 percent to $0.238 after surging 40.48 percent on Friday.
Petmed Express Inc (NASDAQ: PETS) jumped 21.8 percent to $44.73 as the company reported better-than-expected Q2 results.
SenesTech Inc (NASDAQ: SNES) shares surged 21.7 percent to $1.95 after the company disclosed that Univar will be marketing and selling ContraPest.
Yulong Eco-Materials Ltd (NASDAQ: YECO) shares gained 18.3 percent to $0.560.
One Horizon Group Inc (NASDAQ: OHGI) shares rose 18 percent to $1.18.
Atossa Genetics Inc (NASDAQ: ATOS) shares climbed 18 percent to $0.566. Atossa Genetics is schedule to host a conference call to announce preliminary results from Phase 1 study of oral Endoxifen on October 25, 2017.
ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 15.3 percent to $2.72
Renren Inc (NYSE: RENN) shares gained 11.9 percent to $10.71 after gaining 2.68 percent on Friday.
Kalvista Pharmaceuticals Inc (NASDAQ: KALV) shares rose 11.8 percent to $12.59. KalVista Pharma 13D filing from Longwood Fund showed registration for an 8.7 percent stake.
Xunlei Ltd (NASDAQ: XNET) shares gained 9.4 percent to $7.20 after surging 25.33 percent on Friday.
VF Corp (NYSE: VFC) shares surged 7.1 percent to $71.09 after the company reported upbeat earnings for its third quarter and raised its FY2017 guidance.
CAI International Inc (NYSE: CAI) rose 6.6 percent to $39.70. Cowen & Co. upgraded CAI from Market Perform to Outperform.
Agenus Inc (NASDAQ: AGEN) shares gained 5.7 percent to $4.58 as the company disclosed that GSK's shingle vaccine received FDA approval.
Deltic Timber Corp (NYSE: DEL) shares climbed 5.6 percent to $94.11