With shares of Berkshire Hathaway (NYSE:BRKB) trading around $113, is BRKB an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock�� MovementBerkshire Hathaway is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. It is also involved in a freight rail transportation business, a group of utility, and energy generation and distribution businesses.�Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska.
Berkshire Hathaway, Warren Buffett�� conglomerate, has made a profit of $10 billion thus far from investments made during the financial crisis, according to the Wall Street Journal. Berkshire invested a total of $26 billion in six different companies during the crisis, including Mars Inc., Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Swiss Re Ltd., Dow Chemical Co. (NYSE:DOW), and General Electric (NYSE:GE). Last week, Berkshire collected a $4.4 billion payment from Mars subsidiary Wrigley. ��n terms of simple profitability, an average investor could have done just as well investing in the stock market if they bought during the panic period,��Buffett said in an interview Saturday.
Top 10 Heal Care Companies To Buy For 2016: EQT Midstream Partners LP (EQM)
EQT Midstream Partners, LP owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company provides substantially all of its natural gas transmission, storage and gathering services under contracts with fixed reservation and/or usage fees. The Company focuses its operations in the Marcellus Shale fairway in southern Pennsylvania and northern West Virginia. It provides midstream services to EQT Corporation in the Appalachian Basin across 22 counties in Pennsylvania and West Virginia through its two primary assets: its transmission and storage system, which serves as a header system transmission pipeline, and its gathering system, which delivers natural gas from wells and other receipt points to transmission pipelines.
Equitrans Transmission and Storage System
As of December 31, 2011, the Company�� transmission and storage system included an approximately 700 mile FERC-regulated interstate pipeline system that connects to five interstate pipelines and multiple distribution companies, and it is supported by 14 associated natural gas storage reservoirs with approximately 400 million cubic feet per day of peak withdrawal capability and 32 billion cubic feet of working gas capacity. As of December 31, 2011, its transmission assets had total throughput capacity of approximately 1.0 trillion British thermal units per day.
Equitrans Gathering System
The Company�� gathering system consists of approximately 2,100 miles of FERC-regulated low-pressure gathering lines that have multiple delivery interconnects with its transmission and storage system and a gathering and interstate pipeline system owned and operated by Dominion Transmission, Inc.
Advisors' Opinion:- [By Robert Rapier]
Rounding out the top five were�Hi-Crush Partners�(NYSE: HCLP), another supplier of fracking sand (+71 percent),�EQT Midstream Partners�(NYSE: EQM), a midstream provider in the Appalachian Basin (+66.5 percent), and�Valero Energy Partners�(NYSE:VLP) (+61.5 percent), which consists of midstream assets dropped down from the refiner�Valero Energy�(NYSE:VLO).
Top 5 Transportation Companies To Buy For 2015: CAI International Inc (CAP)
CAI International, Inc., incorporated on January 30, 2007, is a equipment leasing and management company, operating primarily in the international intermodal marine cargo container leasing business. The Company also owns a fleet of railcars, which it leases in North America. The Company operates in two segments: equipment leasing and equipment management. The equipment leasing segment specializes primarily in the ownership and leasing of intermodal containers, while the equipment management segment manages equipment for third-party investors. The Company leases its equipment principally to international container shipping lines located throughout the world. The Company sells equipment primarily to third-party investor groups and provides management services to those investors in return for a management fee.
The equipment leasing segment derives its revenue primarily from the ownership and leasing of containers to container shipping lines and freight forwarders. The equipment management segment derives its revenue from management fees earned from portfolios of equipment and associated leases which are managed on behalf of third-party investors. As of March 31, 2013, our fleet consisted of 1,091,117 twenty-foot equivalent units (TEUs) of containers and 1,453 railcars.
Advisors' Opinion:- [By Joseph Hogue]
Because of management's missteps, the company is one of the most hated in the space. Investors have borrowed and sold short 2.3 million shares, amounting to almost 11% of the shares available for trading. That compares with short interest of just 3.9% in closest peer CAI International (NYSE: CAP).
- [By Sarah Jones]
SAP AG (SAP) climbed 1.2 percent to 57.36 euros and Cap Gemini SA (CAP) gained 1.8 percent to 39.95 euros as peer Infosys Ltd. surged the most in six months in Mumbai trading after first-quarter profit rose and the company�� sales forecast in dollar terms beat analyst estimates.
- [By CRWE]
CAI International, Inc. (NYSE:CAP), a leading lessor of intermodal container, reported that its Senior Vice President and Chief Financial Officer, Timothy Page, is scheduled to present at the Dahlman Rose Global Transportation Conference in New York on Thursday, September 6, 2012 at 12:20 p.m. ET.
Top 5 Transportation Companies To Buy For 2015: Union Pacific Corporation(UNP)
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 31,953 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, beverage products, corn for ethanol products and its by-products, animal feeds, fruits and vegetables, frozen meat, and poultry products; and automotive products, such as imported and finished vehicles, and automotive parts and materials. It also provides transportation services for chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products comprising coal and coke; industrial products, including lumber products, paper and consumer goods, furniture and appliances, and nonferrous and i ndustrial minerals, as well as steel and construction products, such as rock, cement, and roofing materials; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.
Advisors' Opinion:- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature an upgrade for Thomson Reuters Reuters (NYSE: TRI ) , a new buy rating for Novavax (NASDAQ: NVAX ) -- but for Union Pacific (NYSE: UNP ) , a downgrade. Let's get that bad news out of the way first.
- [By Dan Caplinger]
Perhaps more importantly, CSX and its peers have also benefited from the huge demand in moving petroleum and other energy products from new unconventional shale plays. Union Pacific (NYSE: UNP ) has been a pioneer in this regard, with plans to spend a quarter-billion dollars on tank cars and other assets to help it move crude out of underserved areas without pipeline coverage, most notably the Bakken in North Dakota. With major refinery companies like Phillips 66 willing to enter into long-term arrangements with producers in the Bakken and other mid-continent plays in order to secure cheaper oil than it can get from international sources on the East Coast, there's plenty of opportunity for CSX to get its share of this growing market. CSX hasn't hesitated to jump on that opportunity, with plans to spend $2.3 billion on infrastructure improvements to its rail network to move anticipated higher volumes of goods.
Top 5 Transportation Companies To Buy For 2015: DryShips Inc (DRYS)
DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocean Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.
As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of four Aframax and one Suezmax tankers.
The Company�� drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk vessels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.
Drybulk Operations
The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.
Offshore Drilling Operations
In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko Cote d��voire Company (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).
The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShips�� wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryShips also has contracts to provide offshore drilling services and drilling units.
Tanker Operations
The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.
Advisors' Opinion:- [By Dan Newman]
For example, when prices were high and companies, such as Diana Shipping� (NYSE: DSX ) and�DryShips (NASDAQ: DRYS ) , ordered more ships, these ships were finally completed a few years later when shipping prices had already cratered. Now, Diana's fleet is on average only 6.4 years old, while DryShips' fleet is on average 7.4 years old, when the typical life of a ship is 25 years. While these young fleets might be good as an investment in the future if global trade picks up, today's troubled eurozone and slowing China will leave these newer ships wanting for higher demand.
- [By Rupert Hargreaves]
The shipping sector has put in a solid performance during the past year or so. However, DryShips (NASDAQ: DRYS ) , one of the sector's biggest players, has missed out on much of the rally.
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