Subject: MLPs – True Value or Value Traps?

Plus, this week's market brief | View this email in your browser
 
           
 
 
Rover's Weekly Market Brief
Rover

Indices

Dow Jones: 16,344.06 (-6.2%)

NASDAQ: 4643.63 (-7.3%)

S&P 500: 1922.03 (-6.0%)

Commodities

Gold: 1,103.30 (+2.6%)

Copper: 201.65 (-2.9%)

Coffee: 119.00 (-6.1%)

Economy

The US trade balance (deficit) for November, 2015 fell 4.9% to $42.4 billion from $44.6 billion in October, 2015 because of a high import decline (-1.7%) and a small export drop (-0.9%). Year to date, the trade deficit has increased 5.5% from the same period in 2014 as result of a stronger dollar, falling oil prices and a slowdown in China.


Crude Oil fell 10.8% this week to close at $33.06 per barrel despite rising geopolitical tensions in the Middle East. Commercial crude oil inventories (excluding the Strategic Petroleum Reserve) fell 1% to 482.3 million barrels in the week ended January 1 from 487.4 million the previous week. However, the national average retail regular gasoline price fell 0.3% to $2.028 from $2.034 per gallon the preceding week.


Initial unemployment claims fell 3.6% last week to 277,000 from 287,000 the previous week while continuing claims rose by 25,000 to 2,230,000. The four week moving average for new claims is also down this week breaking its two-month rally. Overall, both continued claims and initial claims have declined significantly their highs at the beginning of 2015.

Markets

Sonic Corp. (NASDAQ: SONC) recorded a 4.3% increase in total revenue and a 23.5% increase in net income YoY for Q1 2016. Diluted EPS rose 33.3% to $0.33 from $0.18 the same quarter last year. Company drive-in sales rose 3.7% while franchise drive-in sales increased 5.5%.


RPM International (NYSE: RPM) reported a revenue increase of 7.9% while net income went up 13.9% YoY. Diluted earnings per share for Q2 2016 rose 19.2% to $0.62 from $0.52 the same quarter last year. The revenue growth was driven by a 164.8% rise in specialty sales (mainly from acquisitions in the specialty segment) while industrial sales fell 5.8%.


Walgreens' (NASDAQ: WBA) revenue for Q1 2016 grew 48.5% while net income increased 30.6% YoY. Diluted earnings per share increased 13.5% to $1.01 from $0.89 the same quarter last year. Comparable sales for the retail pharmacy USA segment increased 5.8% compared to 2.2% and 3.1% for the retail pharmacy international and pharmaceutical wholesale segments, respectively.


Monsanto (NYSE: MON) reported a 22.7% decline in net sales for Q1 2016. Net income dropped 204.1% whereas diluted EPS decreased 212% to -$0.52 from $0.50 same quarter last year. The two business segments—seed & genomics and agricultural productivity—both recorded declines in sales with 13.7% and 34.4% respectively.

Next Week's Earnings Calendar

Next week will see the big financial houses post their earnings results. Given rising rates, their prospects look positive but maybe checked by defaults.
Mon
AA
SHLM
Tues
CSX
IHS
Wed
CLC
FULT
Thurs
JPM
INTC
Fri
WFC
BLK
 
 

MLPs — True Value or Value Traps?

 

This week Stock Rover analyst Bryson Kacha dives into Master Limited Partnerships (MLPs). MLPs, the darlings of investors a few years ago, have taken a beating from falling oil prices and rising interest rates. Should investors divorce them? Is this the time to stay away or hunt for bargains?

 
Read the article
 
 
 
 

The Year in Rover: 2015

 

What did we accomplish in 2015? This blog post reviews several major product developments that we rolled out this year and give you a sneak peak of what's brewing for 2016.

 
Read the Blog Post
 

Benzinga Fintech Competition

 

Stock Rover is participating in the Benzinga Fintech Awards and we need your help to get to the next round! Vote for us on this page by clicking the Facebook like button or tweeting about the competition.

 
Cast your Vote
 
 
All Recent SR News
 
 
 
 

Watch your email on Monday morning for a very special release announcement! Exciting changes coming your way.

Wishing you a productive week,

The Stock Rover Team

www.stockrover.com

SR Markets Submit Ideas
Our Blog Getting Started
Discover Premium Premium Free Trial
 
Change your email preferences by logging into Stock Rover and going to Email Notifications in the top right-hand menu