LONDON --�The shares of�Edinburgh Investment Trust� (LSE: EDIN ) �dropped 1% to 589 pence during early London trade this morning after its famous fund manager�Neil Woodford�downplayed this year's incredible stock market rally.
Woodford said he'd become�"a bit more cautious," and claimed that the stock market was being "propped up by symptomatic treatment rather than by a cure of the world's economic problems."
Edinburgh Investment trust delivered a 22.3% growth in the fund's net asset value, compared to a 16.8% return from the FTSE All-Share Index.
This outperformance was mostly thanks to Woodford's overweight holdings in the pharmaceuticals sector, where more than a quarter of Edinburgh's assets are invested. The company also benefited from a zero-weighting in the mining sector, which suffered an abysmal year.
Investment manager Neil Woodford added:
[I have] very strong levels of conviction in the attractiveness of the businesses in which the Company is invested.
Hot Net Payout Yield Stocks To Invest In 2015: Violin Memory Inc (VMEM)
Violin Memory, Inc., incorporated on March 9, 2005, is pioneering a new class of flash-based storage systems that are designed to bring storage performance in-line with high-speed applications, servers and networks. The Company�� Flash Memory Arrays are specifically designed at each level of the system architecture starting with memory and optimized through the array to leverage the inherent capabilities of flash memory and meet the sustained requirements of business-critical applications, virtualized environments and Big Data solutions in enterprise data centers. The Company�� Velocity Peripheral Component Interconnect Express (PCIe), Flash Memory Cards leverage its persistent memory-based architecture in servers and are optimized for applications that require continuous access to quantities of low latency persistent memory located directly in servers.
The Company�� storage systems are based on a four-layer hardware architecture, which is integrated with its Violin Memory Operating System (vMOS), software stack to optimize the management of flash memory at each level of its system architecture. The Company�� Velocity PCIe Flash Memory Cards leverage its expertise in persistent memory-based storage and controller design, as well as its vMOS software stack, to offer a differentiated architecture in a deployable PCIe form factor.
Advisors' Opinion:- [By Eric Volkman]
Getty Images/Cultura As more than a few finance industry professionals will happily brag, 2013 was a banner year for initial public offerings with 156 new stocks coming to market -- the most since 2007 -- collectively reaping the issuers aggregate proceeds of more than $38 billion. We went over the most recognizable members of this year's rookie class in "The 5 Most Unfortgettable IPOs of 2013." But in a big pool of 156 companies, there are bound to be at least a few struggling fish. Here, then, is a selection of five from the class of 2013 that are getting seriously lapped by their peers. 1. Prosensa (RNA) This Dutch clinical-stage biopharmaceutical firm had a strong debut when it listed on the Nasdaq in late June. The stock's offer price of $13 zoomed to close at over $19 on the first day of trading. But bad news was waiting around the corner; less than three months later, the shares tanked by more than 70 percent after the company announced that the muscular dystrophy treatment (drisapersen) it was developing in partnership with GlaxoSmithKline (GLAXF), did not hit its primary endpoint in late-stage trials. That one-day free fall saw the stock swoon from $24 per share to barely over $7. Since then, shares have slipped even further, and can currently be had for less than $5. 2. Violin Memory (VMEM) As a provider of high-speed data storage solutions, this company should be well in tune with current IT needs. But it fell flat from the beginning -- on its first day of trading the stock closed slightly over $7 a share, after pricing at $9. Worse was to come when the firm reported its first quarterly results as a publicly traded entity. While revenue advanced nearly 40 percent on a year-over-year basis, that couldn't cover the gaping hole of a bottom line loss totaling $34 million (a figure, by the way, significantly higher than the top line number of $28 million). The already-sinking shares continued to dive, bottoming at just over $2.50 per share. The re
- [By Mani]
Violin Memory, Inc. (NYSE: VMEM) is well positioned to take advantage of the strong secular growth of flash in the enterprise. The combination of its proprietary hardware, a growing software portfolio and resulting industry-leading price/performance should translate into robust growth over a multi-year time frame.
- [By Paul Ausick]
Stocks on the Move: J.C. Penney Co. Inc. (NYSE: JCP) is down 13.9% at $8.97 after a secondary stock offering�that might have been designed to drive out short sellers. Violin Memory Inc. (NASDAQ: VMEM) is down 21% at $7.11 on a lousy IPO�day. RingCentral Inc. (NYSE: RNG) is up 39.5% at $18.14 on a good IPO day.
- [By Michael Calia]
Violin Memory Inc.(VMEM) named Kevin A. DeNuccio as chief executive after firing prior CEO Don Basile in December because of the company’s poor performance. The flash-storage company posted disappointing third-quarter results and a sagging stock price.
Hot Net Payout Yield Stocks To Invest In 2015: Quicksilver Resources Inc. (KWK)
Quicksilver Resources Inc., an independent oil and gas company, engages in the acquisition, exploration, development, and production of onshore oil and gas in North America. The company focuses primarily on unconventional reservoirs, such as fractured shales, coal beds, and tight sands. It owns producing oil and natural gas properties principally in Texas, Colorado, Wyoming, and Montana, as well as in Alberta and British Columbia. The company primarily holds interests in assets covering an area of approximately 140,000 net acres located in the Barnett Shale, Fort Worth basin, north Texas; exploratory licenses covering an area of approximately 130,000 net acres located in the Horn River basin of northeast British Columbia; and assets covering an area of approximately 36,929 net undeveloped acres located in the Horseshoe Canyon, southern and central Alberta. As of December 31, 2011, it had total proved reserves of approximately 2.8 trillion cubic feet of natural gas equivale nts. The company was founded in 1997 and is headquartered in Fort Worth, Texas.
Advisors' Opinion:- [By Aimee Duffy]
Not for everyone
Even in these MLP-friendly times, some companies ultimately decide not to take their business to the Street. Quicksilver Resources (NYSE: KWK ) planned to spin off its subsidiary, Quicksilver Production Partners, into an oil and gas MLP this year, but withdrew its plans in May after recording quarter after quarter of dismal results. - [By Vanina Egea]
Backed by the successful performance registered for fiscal year 2013, Southwestern Energy announced the acquisition of approximately 312,000 net acres in northwest Colorado targeting crude oil, natural gas liquids and natural gas contained in the Niobrara formation from Quicksilver Resources (KWK) and SWEPI LP, a wholly owned subsidiary of Royal Dutch Shell (RDS.A) for approximately $180 million. The transaction is expected to close in the second quarter of 2014.
- [By Aaron Levitt]
Over the long term, analysts speculate that FST will sell off the remaining chunk of its non-core properties in order to focus strictly on the Eagle Ford.�If it�� successful, the current share price of this $3.30 could be more valuable than a winning lotto ticket.
Energy Stocks Under $10 to Buy Now:�Quicksilver Resources (KWK)Quicksilver Resources (KWK) is the last name on our list of cheap energy stocks under $10 … and it could also be one of the best rocket-ship plays for rising natural gas. KWK focuses primarily on unconventional reservoirs, such as shale formations, coal beds and tight sands. As such, about 99% of the company’s production comes from natural gas and NGLs.
Hot Integrated Utility Stocks To Buy Right Now: BioMarin Pharmaceutical Inc.(BMRN)
BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company?s commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia. The company sells its Naglazyme, Kuvan, and Firdapse products to specialty pharmacies and end-users, such as hospitals and foreign government agencies, which act as retailers; and Naglazyme products to distributors and pharmaceutical wholesalers. It has a collaboration agreement with Genzyme Corporation for the manufacture of Aldurazyme; and an agreement with Merck Serono S.A. for the further development and commercialization of Kuvan and other products containing 6R-BH4 and PEG-PAL for PKU. BioMarin Pharmaceutical Inc. was founded in 1996 and is headquartered in Novato, California.
Advisors' Opinion:- [By George Budwell]
Will BioMarin be the next orphan drugmaker to be bought out?
Over the last decade, BioMarin Pharmaceutical (NASDAQ: BMRN ) has become one of the top orphan drug specialists, making it a frequent visitor to the buyout rumor mill. Roche (NASDAQOTH: RHHBY ) was previously named as an interested party, but the company's CEO squashed that rumor, saying BioMarin was too expensive. - [By John Udovich]
Bubble talk, biotech IPO setbacks plus news�about small cap biotechs like Intrexon Corp (NYSE: XON) and TNI BioTech (OTCMKTS: TNIB) have dominated biotech news this week or in recent weeks. Just consider the following news:
Why There is No Biotech Bubble & Where to Look for Value in Biotech. Marshall Gordon, the Director and senior health-care analyst of ClearBridge Investments, was recently interviewed by Barron�� where he stated his belief that there is no biotech bubble because biotech stocks have delivered new drugs and have shown an ability to innovate. With that said, he added that the sector got ahead of itself while some biotechs suffered setbacks plus hedge funds decided to trim risk from their portfolios. Nevertheless, Marshall likes or is watching mid cap biotechs BioMarin Pharmaceutical Inc (NASDAQ: BMRN) and Pharmacyclics, Inc (NASDAQ: PCYC) along with small cap biotechs�Pacira Pharmaceuticals Inc (NASDAQ: PCRX) and Clovis Oncology Inc (NASDAQ: CLVS). He also added that recent biotech IPOs have been lesser quality names than earlier offerings. A Trio of Biotech�IPO Setbacks. FierceBiotech has�summarized how a trio of biotech IPO have suffered setbacks. Specifically, Relypsa (NASDAQ: RLYP), a late-stage biotech developing a treatment for hyperkalemia,�slashed its asking price on 6.9 million shares to $12 a share to raise $82 million�from a range of $16 to $19 a share while�Xencor (NASDAQ: XNCR), a biotech developing antibodies for severe autoimmune/allergic diseases and cancer,�has dropped its IPO price to $7 a share to raise $75 million from a range of $14 to $16. Meanwhile, Celladon, which is developing a first-in-class gene therapy for patients with systolic heart failure, has postponed its IPO citing poor market conditions. Coming�Biotech IPOs. Nevertheless, FierceBiotech has noted that GeNO Healthcare (NASDAQ: GNO) is looking to raise $50 million for its�new, patient-friendly approach for delivering inhaled nitric oxide on the - [By Sean Williams]
BioMarin Pharmaceuticals (NASDAQ: BMRN )
BioMarin might as well be considered a long lost sibling of Alexion, since they are both focused on developing rare orphan drugs which have practically no competition and hefty annual price tags, often in six-figures. However, whereas Alexion is profitable, BioMarin has some "'splaining to do," as Desi Arnaz used to say. Estimates in the upcoming quarter call for sales growth of just 8% to $134 million with losses expected to widen to $0.29 per share. Naglazyme's 1% sales increase last quarter didn't impress at all, so it'll need Aldurazyme to really step up if it hopes to maintain its frothy valuation. - [By MONEYMORNING.COM]
There is no crystal ball that's 100% accurate when experimental drugs are concerned, but here are some telling questions that can narrow your search.
Questions to Answer Before You Buy In Does the drug fulfill an unmet need?
Alexion Pharmaceuticals Inc.'s (Nasdaq: ALXN) Soliris (eculizumab) is the only drug approved to treat paroxysmal nocturnal hemoglobinuria (PNH), an extremely rare, lethal blood disorder. It is also the only therapy approved to treat atypical hemolytic uremic syndrome (aHUS), a genetic condition that can result in sudden and progressive damage to vital organs, leading to stroke, heart attack, and kidney failure. Five years ago, ALXN shares were selling for about $18.50. They recently hit a high of $180.51 - thanks to Soliris, and Soliris alone. Is it a "breakthrough" drug?
A "Breakthrough Therapy" (BT) is actually a designation awarded by the FDA for a drug that "...is intended alone or in combination with one or more other drugs to treat a serious or life-threatening disease or condition and [has] preliminary clinical evidence [that] indicates the drug may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development." In 2012, the FDA granted Roche/Genetech's Gasyva a BT designation and then approved it for marketing in 2013. It treats chronic lymphocytic leukemia (CLL) and is expected to be a big blockbuster - as are the other three breakthrough therapies that were approved last year. Can its market produce blockbuster income?
This can mean a huge market, such as patients with high cholesterol - think Pfizer Inc.'s (NYSE: PFE) Lipitor (atorvastatin calcium), the bestselling drug of all time - or a small market that will pay for highly priced orphan drugs for rare diseases. BioMarin Pharmaceutical Inc. (Nasdaq: BMRN), a company that specializes in the
Hot Net Payout Yield Stocks To Invest In 2015: Geron Corporation (GERN)
Geron Corporation, a biopharmaceutical company, develops therapies for cancer. Its clinical development product candidates include Imetelstat, a telomerase inhibitor, which is in Phase II clinical trials for the treatment of metastatic breast cancer, advanced non-small cell lung cancer, thrombocythemia, and myeloma. The company was founded in 1990 and is based in Menlo Park, California.
Advisors' Opinion:- [By Monica Gerson]
Breaking news
Energy XXI (NASDAQ: EXXI) and EPL Oil & Gas (NYSE: EPL) today announced the signing of a definitive merger agreement pursuant to which Energy XXI will acquire all of EPL's outstanding shares for total consideration of $2.3 billion, including the assumption of debt. To read the full news, click here. Achaogen (NASDAQ: AKAO) announced today the pricing of its initial public offering of 6,000,000 shares of its common stock at a price to the public of $12.00 per share. To read the full news, click here. Geron (NASDAQ: GERN) announced today that the company has received verbal notice from the U.S. Food and Drug Administration (FDA) that its Investigational New Drug (IND) application for imetelstat has been placed on full clinical hold, affecting all ongoing company-sponsored clinical trials. To read the full news, click here. VeriFone (NYSE: PAY) jumped 9.5% in pre-market trading after the company reported its first quarter results. The firm reported a Q1 EPS of $0.31 versus the Street estimate of $0.27. To read the full news, click here.Posted-In: Credit Suisse US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets
- [By Paul Ausick]
Stocks on the Move: Veeva Systems Inc. (NYSE: VEEV) is up a whopping 85.5% at $37.15 on huge demand following its IPO. Geron Corp. (NYSE: GERN) is up 39.7% at $4.37. Molycorp Inc. (NYSE: MCP) is down 1.8% at $5.48 following a secondary stock offering.
- [By Monica Gerson]
Geron (NASDAQ: GERN) is projected to post a Q4 loss at $0.07 per share on revenue of $350.00 thousand.
SciClone Pharmaceuticals (NASDAQ: SCLN) is expected to report its Q4 earnings at $0.15 per share on revenue of $38.30 million.
Hot Net Payout Yield Stocks To Invest In 2015: LRR Energy LP (LRE)
LRR Energy, L.P (LRR Energy) is a limited partnership formed by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. The Company�� properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas. As of March 31, 2011, the Company�� total estimated proved reserves were approximately 30.3 million barrels of oil equivalent (MMBoe), of which approximately 84% were proved developed reserves. During the year ended December 31, 2010, approximately 55% of its pro forma revenues were from oil and natural gas liquids (NGLs) and approximately 37% of its total estimated proved reserves were oil and NGLs. As of March 31, 2011, the Company operated 93% of its proved reserves. Based on its pro forma average net production of 6,503 barrels of oil equivalent per day (Boe/d) for December 31, 2010, the Company�� total estimated proved reserves as of March 31, 2011 had a reserve-to-production ratio of approximately 12.8 years. In January 2013, the Company acquired oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources. In April 2013, it announced that it closed its acquisition of oil and natural gas properties in the Mid-Continent region in Oklahoma.
The Company�� general partner, LRE GP, LLC, is controlled by Lime Rock Management LP. The Company�� general partner has sole responsibility for conducting its business and for managing its operations. The Company�� properties consist of mature, low-risk onshore oil and natural gas reservoirs with long-lived, predictable production profiles located across three diverse producing regions: the permian basin region in west texas and southeast new mexico, the mid-continent region in oklahoma and east texas, and the gulf coast region in texas. As of March 31, 2011, the Company�� estimated proved developed non-! producing reserves included 192 gross (158 net) recompletion, refracture stimulation and workover projects. In addition, as of March 31, 2011, the Company�� proved undeveloped reserves included 213 gross (140 net) identified drilling locations.
As of March 31, 2011, approximately 55% of the Company�� estimated proved reserves and approximately 44% of its pro forma average daily net production for the three months ended December 31, 2010, were located in the Permian Basin region. Approximately 60% of the Company�� estimated net proved reserves in the Permian Basin region are oil and NGLs. The Permian Basin is one of the oil and natural gas producing basins in the United States, extending over 100,000 square miles in West Texas and southeast New Mexico, and has produced over 24 billion barrels of oil. The Company owns an 83% average working interest across 665 gross (552 net) wells and operates approximately 92% of its properties in the Permian Basin. The Company�� estimated proved reserves for its Permian Basin properties as of March 31, 2011 totaled 16.6 MMBoe and had a standardized measure of $237.7 million, which represented 69% of the total standardized measure for all of its estimated proved reserves.
The Company�� properties in the Red Lake area is an oil-weighted field located in Eddy County, New Mexico. The Red Lake properties have produced approximately 4.9 MMBoe. The primary producing formations are the San Andres and Yeso at a depth of approximately 2,000 to 5,000 feet. The Company operates approximately 99% of its proved reserves in the Red Lake area, including 157 gross (144 net) producing wells in the field with an average working interest of 92%, and own a non-operated working interest in 10 gross (3 net) additional wells in the area with an average working interest of 31%. The Company�� properties in the field contained 9.6 MMBoe of estimated net proved reserves as of March 31, 2011, approximately 86% of which are oil and NGLs, and generated average n! et produc! tion of 1,410 Boe/d for December 31, 2010. These properties represented 32% of its total estimated proved reserves as of March 31, 2011 and 22% of the Company�� pro forma average net production for December 31, 2010. In addition, these properties had a standardized measure of $163.3 million as of March 31, 2011, which represented 48% of the total standardized measure for all of the Company�� estimated proved reserves.
The Company�� properties in the Pecos Slope area is a gas-weighted field located in Eddy, Chaves, Lea and Roosevelt Counties, New Mexico. The Company operates approximately 100% of its proved reserves in the Pecos Slope area, including 434 gross (382 net) producing wells in the field with an average working interest of 88%. The Company�� Willow Lake field is an oil-weighted field located in Eddy County, New Mexico. There are 41 gross (8 net) producing wells in this area with an average non-operated working interest of 19%. The Cowden Ranch area is an oil-weighted field located in Crane County, Texas. The Company operate s100% of its proved reserves in the Cowden Ranch area, including 8 gross (approximately 5 net) producing wells in the field with an average working interest of 71%. The Company�� properties in the Corbin and Vacuum have produced approximately 3.0 MMBoe. The Company operates 100% of its proved reserves in the Corbin and Vacuum areas, including 8 gross (8 net) producing wells with an average working interest of 100%.
As of December 31, 2010, approximately 33% of the Company�� estimated proved reserves and approximately 38% of its pro forma average daily net production for December 31, 2010 were located in the Mid-Continent region. The Company�� Potato Hills Area is an Arkoma Basin natural gas property located in Latimer and Pushmataha Counties in Southeast Oklahoma. The Company�� Reklaw properties have produced approximately 5.6 MMBoe. The Company operates 100% of its proved reserves in the Reklaw area, including 63 gross (61 net) pro! ducing we! lls in the field with an average working interest of 97%. Its properties in the Black Bayou-Doyle Creek area is a natural gas-weighted field located in Angelina, Cherokee and Nacogdoches Counties, Texas, in close proximity to the Reklaw area. The Company�� non-operated interest in 43 gross (approximately 12 net) producing wells in the field with an average non-operated working interest of 26%.
As of March 31, 2011, approximately 12% of the Company�� estimated proved reserves and approximately 18% of its pro forma average daily net production for December 31, 2010 were located in the Gulf Coast region. Approximately 31% of the Company�� estimated net proved reserves in the Gulf Coast region are oil and NGLs. The Company owns an 82% average working interest across 42 gross (35 net) wells and operates 100% of its properties in the Gulf Coast region. The Company�� property New Years Ridge area is a natural gas-weighted field located in DeWitt County, Texas. The Company�� George West-Stratton areas consist of natural gas-weighted fields located in Live Oak and Hidalgo Counties, Texas. The Company�� operates 100% of its proved reserves in the George West-Stratton areas, including 23 gross (17 net) producing wells in the George West-Stratton areas with an average working interest of 73%.
Advisors' Opinion:- [By Robert Rapier]
LRR Energy (NYSE: LRE) is an upstream MLP focused on acquiring and developing oil and natural gas properties in the Permian Basin, the Mid-Continent region, and the Gulf Coast region in Texas. Total proved reserves at the end of 2012 were 31.7 million barrels of oil equivalent (BOE), of which 50 percent were liquids. The partnership is ~85 percent hedged through 2017 at average prices of $92.73/barrel for oil, $37.04/bbl for NGLs, and $5.06 per MMBtu for natural gas.
- [By Lee Jackson]
LRR Energy L.P. (NYSE: LRE) is another top stock to buy that has seen significant insider buying. CEO and Chairman of the Board Eric Mullins recently purchased 16,750 shares of the stock. It always looks good when the top management is buying the stock of the company they work for. Oppenheimer has an $18 price target, and the consensus is pegged at $16.75. Shareholders are receiving a huge 12.9% distribution.
Hot Net Payout Yield Stocks To Invest In 2015: Copa Holdings SA (CPA)
Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.
Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.
The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.
Advisors' Opinion:- [By Will Ashworth]
I don�� know what�� going to happen in six months, let alone 20 years. However, I do know that OLED plays in a very exciting space, and Discovery Capital still seems to agree. Financially, OLED stock is solid, and if things go the company’s way in the coming years, it should get big in a hurry.
Best Stocks #3 (Midcap): Copa Holdings (CPA)
I�� a big believer in Latin America. While it has its troubles like every other emerging market, I continue to view its growing middle class with envy. While our middle class is being hallowed out, Latin America�� is growing exponentially. The U.S. was never more secure economically than when its middle class was growing, so history has demonstrated what this can do for a country.
- [By Arie Goren]
After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).
Hot Net Payout Yield Stocks To Invest In 2015: Sandridge Mississippian Trust II (SDR)
SandRidge Mississippian Trust II is a statutory trust formed to own overriding royalty interests to be conveyed to the trust by SandRidge Energy, Inc. (SandRidge) in 67 producing horizontal wells, including 13 wells, which are awaiting completion (the Producing Wells), in the Mississippian formation in northern Oklahoma and southern Kansas, and overriding royalty interests in 206 horizontal development wells (The Development Wells) to be drilled in the Mississippian formation (the Development Wells) on properties within an Area of Mutual Interest (the AMI). SandRidge is an independent oil and natural gas company engaged in the development and production activities related to the exploitation of its holdings in West Texas and the Mid-Continent area of Oklahoma and Kansas. The AMI, which is limited to the Mississippian formation, consists of approximately 81,200 gross acres (53,000 net acres) held by SandRidge. The Bank of New York Mellon Trust Company, N.A. is trustee (the Trustee), and The Corporation Trust Company is a Delaware Trustee (the Delaware Trustee).
The Mississippian formation is encountered at depths between approximately 4,000 feet and 7,000 feet and lies between the Pennsylvanian-aged Morrow formation and the Devonian-aged Woodford Shale formation. Effective as of January 1, 2012, the royalty interests was conveyed from SandRidge's interest in the Producing Wells and the Development Wells. The royalty interest in the Producing Wells (the PDP Royalty Interest) entitles the trust to receive 80% of the proceeds from the sale of production of oil and natural gas attributable to SandRidge's net revenue interest in the Producing Wells. The royalty interest in the Development Wells (the Development Royalty Interest) entitles the trust to receive 70% of the proceeds from the sale of oil and natural gas production attributable to SandRidge's net revenue interest in the Development Wells.
As of December 31, 2011, the total proved reserves estimated to be attributable to t! he trust were 26.1 million barrels of oil equivalent. This amount includes 10.2 million barrels of oil equivalent attributable to the PDP Royalty Interest and 15.9 million barrels of oil equivalent attributable to the Development Royalty Interest. The proved reserves consist of 46.8% oil and 53.2% natural gas. In addition, as of December 31, 2011, there were 9.8 million barrels of oil equivalent of probable reserves estimated to be attributable to the trust, all of which were attributable to the Development Royalty Interest. The probable reserves consist of 46.9% oil and 53.1% natural gas.
SandRidge will retain 20% of the proceeds from the sale of oil and natural gas attributable to its net revenue interest in the Producing Wells, as well as 30% of the proceeds from the sale of future production attributable to its net revenue interest in the Development Wells. SandRidge initially will own 48.2% of the trust units. SandRidge operates 79% of the Producing Wells. The completed Producing Wells and 121 other Mississippian wells outside of the AMI that have been completed by SandRidge have an average perforated length of approximately 4,200 feet. SandRidge Exploration and Production, LLC (SandRidge E&P), a wholly owned subsidiary of SandRidge, will grant to the trust a lien on its interests in the AMI.
The Underlying Properties are located in Noble, Kay, Alfalfa, Grant and Woods counties in northern Oklahoma and Harper, Comanche, Sumner and Barber counties in southern Kansas in the Mississippian formation, which is an expansive carbonate hydrocarbon system located on the Anadarko Shelf. The Mississippian formation can reach 1,000 feet in gross thickness and the targeted porosity zone is between 50 and 100 feet in thickness. As of December 31, 2011, there were approximately 43 horizontal rigs drilling in the formation, with 19 of those rigs drilling for SandRidge. As of December 31, 2011, SandRidge had approximately 1.5 million net acres leased in the Mississippian formation in north! ern Oklah! oma and Kansas.
Advisors' Opinion:- [By Jonathan Morgan]
Schroders Plc (SDR) gained 1.3 percent to 2,183 pence after Exane raised its recommendation on Europe�� biggest independent money manager to outperform, which is similar to a buy rating, from neutral. The brokerage said that the fund manager will benefit from its brand and its distribution network among retail and institutional clients.
- [By Dan Caplinger]
SandRidge has made a huge bet on the Mississippian Lime shale play, especially after selling off its Permian Basin assets late last year. Unfortunately, that bet hasn't paid off well for shareholders, as the company saw its spun-off royalty trusts SandRidge Mississippian Trust I (NYSE: SDT ) and SandRidge Mississippian Trust II (NYSE: SDR ) fail to meet their projections for distribution amounts during the first quarter. The main problem has been that wells in the Mississippian Lime have produced more natural gas than expected, and even with a slight rebound in gas prices, it still doesn't produce adequate margins compared to oil and natural-gas liquids.
- [By Matt DiLallo]
SandRidge Mississippian Trust I (NYSE: SDT ) and Trust II (NYSE: SDR )
These trusts were created by SandRidge Energy (NYSE: SD ) , with the first Mississippian Trust formed in 2010 and the second formed one year later. Both trusts own royalty interests in oil and gas properties targeting the Mississippian formation and have future upside as SandRidge drills wells as part of the areas of mutual interest.
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