This week should see the debut of three new publicly traded partnerships.
Westlake Chemical Partners�(expected ticker WLKP) was recently formed by�Westlake Chemical�(NYSE: WLK) to operate, acquire and develop ethylene production facilities and related assets. WLK is a manufacturer and supplier of petrochemicals, vinyls, polymers and building products produced at 16 plants across North America and one in China.
Westlake Chemical Partners��business and operations will be conducted through OpCo, a new Westlake affiliate in which WLKP will initially own a 10% limited partner stake as well as the general partner interest. WLK retained a 90% limited partner (LP) interest in OpCo and will own WLKP�� general partner and 55.7% of WLKP�� limited partner units, along with the incentive distribution rights.
OpCo�� assets will be comprised of three production facilities that convert ethane into ethylene, which is the world�� most widely used petrochemical in terms by volume. Aggregate annual capacity of the facilities is approximately 3.4 billion pounds. Assets also include the Longview Pipeline, a 200-mile ethylene pipeline with a capacity of 3.5 million pounds per day that runs from Mont Belvieu, Texas to the Longview, Texas chemical complex.
Chanticleer Holdings, Inc., incorporated in 1999, is a business operator focused on expanding the Hooters casual dining restaurant brand in international markets. Chanticleer has rights to develop and operate Hooters restaurants in South Africa and has joint ventured with the current franchisee in Australia. The company also has franchise rights to develop Hungary and parts of Brazil while evaluating several additional opportunities internationally. During the year ended December 31, 2011, Chanticleer and a group of private equity investors acquired Hooters of America, Inc. (HOA). HOA is the franchisor and operator of over 450 Hooters restaurants in 44 states and 28 foreign countries. In October 2013, Chanticleer Holdings Inc purchased American Roadside Burgers, Inc. In December 12, 2013, Chanticleer Holdings Inc acquired a 51% interest in JF Restaurants LLC, an owner and operator of restaurants. In February 2014, it acquired Hooters' United States Pacific Northwest franchise rights and two existing restaurants in Oregon and Washington.
The Company operates in two business segments: Hooters franchise restaurants, and investment management and consulting services businesses. Hooters has also branched out to other areas, including licensing its name to a golf tour and the sale of packaged food in supermarkets. Its subsidiaries include Chanticleer Advisors, LLC, (Advisors), Avenel Ventures, LLC (Ventures), Avenel Financial Services, LLC (AFS), Chanticleer Holdings Limited (CHL), Chanticleer Holdings Australia Pty, Ltd. (CHA), Chanticleer Investment Partners, LLC (CIP), DineOut SA Ltd. (DineOut), Kiarabrite (Pty) Ltd (KPL), Dimaflo (Pty) Ltd (DFLO), Tundraspex (Pty) Ltd (TPL), Civisign (Pty) Ltd (CPL), Dimalogix (Pty) Ltd (DLOG) and Crown Restaurants Kft. (CRK).
South Africa
As of December 31, 2011, the Company had four Hooters locations in South Africa in Cape Town, Durban and Johannesburg (two locations), which are owned by four companies, which it control. The Com! pany formed a management company to operate the current South African Hooters locations. It owns 80% of the management company, with two members of local management owning the remaining 20%. The management company charges a management fee of 5% of net revenues to the Hooters locations in South Africa.
Other Countries
The Company has acquired development rights for Hooters in five states of Brazil, which would include Rio de Janeiro. It has applied to HOA for franchise rights in Hungary, where it own 80% of the entity the Company anticipate will hold the franchise rights and its local partner owns the remaining 20%. The Company has partnered with the Hooters franchisee in a joint venture in which it owns 49% and its partner 51%. The first Hooters restaurant under this joint venture (which would be the third Hooters restaurant open in Australia) opened in January 2012 in Campbelltown, a suburb of Sydney. It has a non-binding letter of intent with a franchisee to purchase 100% of an existing Hooters location.
Management and consulting services
The Company provides management and consulting services for small companies, which are seeking to become publicly traded. The Company also provides management and investment services for Investors LLC and Investors II, which are affiliates of the Company.
Advisors' Opinion: - [By Chris Isidore]
Restaurant chains are trying to hold the line on prices. Mark Allison, senior vice president of culinary operations at Chanticleer Holdings (HOTR), which operates the American Roadside Burger chain, said his chain raised prices about 12%, even though their beef costs are up even more than that.
10 Best Building Product Stocks To Own Right Now: Dorchester Minerals L.P.(DMLP)
Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and non-producing natural gas and crude oil royalty, net profits, and leasehold interests in the United States. Its net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership; and royalty properties consist of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 574 counties and parishes in 25 states. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.
Advisors' Opinion: - [By Robert Rapier]
Q: The writer before you did not like Dorchester. Could you research it and give a recommendation by the next chat?
Dorchester Minerals (Nasdaq: DMLP) is a Texas-based partnership that owns producing and non-producing crude oil and natural gas properties, royalty, overriding royalty, net profits, and leasehold interests. The partnership is primarily a natural gas producer, and the biggest knock against it historically is that it hasn’t done a great job of growing proved reserves:
Dorchester Minerals Reserves History. Source: Dorchester Minerals Investor Presentation
10 Best Building Product Stocks To Own Right Now: Zep Inc.(ZEP)
Zep Inc. produces and markets cleaning and maintenance chemicals, and related products and services for commercial, industrial, institutional and consumer applications. Its products include anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, pest- and weed-control products, air-care products and delivery systems, and various automotive maintenance chemicals. The company markets its products and services under various brands, such as Zep, Selig, ArmorAll, Niagara, Enforcer, Zep Commercial, RedMax Pro, Rubbermaid Commercial, Original Bike Spirits, Country Vet, Zep Professional, Microbemax, Misty, TimeMist, i-Chem, TimeWick, and Next Dimension brands, as well as private label and original equipment manufacturer private brands. It serves customers in industrial maintenance, janitorial/sanitation, and automotive markets; transportation, food processing, industrial manufacturing, and food service industr ies; and contractors, small business owners, and homeowners in the United States, Canada, and Europe. The company was founded in 1937 and is headquartered in Atlanta, Georgia.
Advisors' Opinion: - [By Monica Gerson]
Zep (NYSE: ZEP) is projected to report its Q4 earnings at $0.24 per share on revenue of $179.09 million.
Ruby Tuesday (NYSE: RT) is expected to post a Q1 loss at $0.05 per share on revenue of $298.27 million.
- [By Laura Brodbeck]
Monday
Earnings Releases Expected: Sonic Corp (NASDAQ: SONC), Calavo Growers, Inc. (NASDAQ: CVGW), Zep Inc. (NYSE: ZEP) Economic Releases Expected: �Spanish services PMI, Italian services PMI, French services PMI, German services PMI, eurozone services PMI, British services PMI, eurozone investor confidence, German CPI, Australian trade balance Tuesday
- [By Seth Jayson]
Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Zep (NYSE: ZEP ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Zep doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue increased 3.5%, and inventory increased 11.8%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue grew 7.7%, and inventory grew 11.8%. Over the sequential quarterly period, the trend looks OK but not great. Revenue grew 3.4%, and inventory grew 4.7%.
10 Best Building Product Stocks To Own Right Now: Ultratech Inc.(UTEK)
Ultratech, Inc. develops, manufactures, and markets photolithography and laser thermal processing equipment. It supplies step-and-repeat photolithography systems based on one-to-one imaging technology to semiconductor device manufacturers for applications involving line geometries of 0.75 microns or greater and to nanotechnology manufacturers. The company?s steppers are also used to manufacture semiconductors that are used in various applications, such as telecommunications, automotive control systems, power systems, and consumer electronics. It also supplies 1X photolithography systems to thin film head manufacturers; and offers LSA100, a laser-based thermal annealing tool used by the semiconductor industry for various process steps, including activation of implanted impurities, dielectric film formation, formation of silicides, and stabilization of copper grain structures. Ultratech, Inc. sells its systems to semiconductor, advanced packaging, high-brightness light emit ting diodes, thin film head, and various other nanotechnology manufacturers in North America, Europe, and Asia. The company was founded in 1979 and is headquartered in San Jose, California.
Advisors' Opinion: 10 Best Building Product Stocks To Own Right Now: Caseys General Stores Inc.(CASY)
Casey?s General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey?s General Store, HandiMart, and Just Diesel names in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. Its stores offer foods, beverages, dairy and bakery products, sandwiches, fountain drinks, donuts, cookies, brownies, Danish rolls, ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites. The company?s stores also provide nonfood items, which include tobacco products, health and beauty aids, school supplies, house wares, pet supplies, photo supplies, and automotive products. In addition, it offers gasoline or gasohol for sale on a self-service basis. As of July 31, 2011, the company operated 1,665 stores. The company was founded in 1959 and is headquartered in Ankeny, Iowa.
Advisors' Opinion: - [By Michael Lewis]
For those who call the American midwest home, the convenience store chain Casey's General Stores (NASDAQ: CASY ) is likely a part of everyday life. If you're like me, on the other hand, who grew up on one coast and lives on the other, the business could just as easily be something from Blazing Saddles. But, as it turns out, the stores, which span more than 1,700 locations in 11 states, are doing well, and may be poised for further performance as earnings grow and margins expand. Does your portfolio need a quick stop into Casey's General Stores?
- [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]
Casey's General Stores Inc.(CASY) said its fiscal third-quarter earnings fell 5.1% as the convenience-store operator reported higher costs, which offset an increase in revenue.
- [By Mike Deane]
After the closing bell on Monday, Casey’s General Stores (CASY) reported its third quarter earnings, posting slightly lower EPS than last year’s Q3 figure, due in part to extreme winter weather.
CASY’s Earnings in Brief
CASY reported third quarter revenues of $1.79 billion, up from last year’s Q3 figure of $1.66 billion. Net income for the quarter came in at $14.67 million, or 38 cents per share, which is lower than last year’s Q4 figure of $15.46 million, or 40 cents per share. Casey’s missed analysts’ estimates of 49 cents EPS on revenues of $1.84 billion. CEO Commentary
CASY”s chairman and CEO, Robert J. Myers, had the following comments: ��hird quarter sales were strong throughout all of our categories despite challenging weather during the quarter. Our same-store fuel sales are exceeding industry-wide trends and gross profit from inside the store was up over 11% for both the quarter and year.��/p>
CASY’s Dividend
Casey’s declared a dividend raise in June last year, pushing its quarterly payout to 18 cents from 17 cents. The company’s next dividend is payable on May 15 to all shareholders on record as of May 1.
Stock Performance
Casey’s stock ended the day up $1.52, or 2.29%, but it was heading lower in after hours earnings, due to the company’s large earnings miss. YTD, the company’s stock is down 3.7%.
- [By Seth Jayson]
Casey's General Stores (Nasdaq: CASY ) reported earnings on June 13. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q4), Casey's General Stores met expectations on revenues and beat expectations on earnings per share.
10 Best Building Product Stocks To Own Right Now: Royal Caribbean Cruises Ltd.(RCL)
Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisi�es de France. The Royal Caribbean International brand provides various itineraries and cruise lengths with options for onboard dining, entertainment, and other onboard activities primarily for the contemporary segment. It offers surf simulators, water parks, ice skating rinks, rock climbing walls, and shore excursions at each port of call, as well as boulevards with shopping, dining, and entertainment venues. The Celebrity Cruises brand operates onboard upscale ships that offer luxurious accommodations, fine dining, personalized services, spa facilities, venue featuring live grass, and glass blowing studio for the premium segment, as well as resells computers and other media devices. The Pullmantur brand provides an array of onboard activities and serv ices to guests, including exercise facilities, swimming pools, beauty salons, gaming facilities, shopping, dining, complimentary beverages, and entertainment venues serving the contemporary segment of the Spanish, Portuguese, and Latin American cruise markets. The Azamara Club Cruises brand offers various onboard services, amenities, gaming facilities, fine dining, spa and wellness, butler service for suites, and interactive entertainment venues for the up-market segment of the North American, United Kingdom, German, and Australian markets. The CDF Croisieres de France brand offers seasonal itineraries to the Mediterranean; and various onboard services, amenities, entertainment venues, exercise and spa facilities, fine dining, and gaming facilities for the contemporary segment of the French cruise market. As of December 31, 2011, the company operated 39 ships with a total capacity of approximately 92,650 berths. Royal Caribbean Cruises Ltd. was founded in 1968 and is headqua rtered in Miami, Florida.
Advisors' Opinion: - [By Rick Munarriz]
The fire aboard Royal Caribbean's (NYSE: RCL ) Grandeur of the Seas was put out within two hours, but not before disrupting the travel plans of passengers on board and those set to board the ship this Friday. Both sailings have been nixed, and even though Royal Caribbean is doing things right by issuing refunds and discounts on future sailings, this is going to be a big hit for the cruise industry.
10 Best Building Product Stocks To Own Right Now: Matrix Service Company(MTRX)
Matrix Service Company provides construction, and repair and maintenance services primarily to the energy and energy related industries in the United States and internationally. The company operates in two segments, Construction Services, and Repair and Maintenance Services. The Construction Services segment offers aboveground storage tanks for the bulk storage/terminal industry, capital construction for the downstream petroleum industry, and specialty construction, as well as electrical/instrumentation services, such as civil/structural, mechanical, piping, electrical and instrumentation, millwrighting, and fabrication for various industries. This segment focuses on renovations, retrofits, modifications, and expansions to existing facilities, as well as construction of new facilities. The Repair and Maintenance Services segment provides aboveground storage tank repair and maintenance services, including tank inspection, cleaning, and American Society of Mechanical Enginee rs code repairs; planned major and routine maintenance for the downstream petroleum industry; specialty repair and maintenance services; and electrical and instrumentation repair and maintenance. It serves integrated oil companies, independent petroleum refiners, power companies, engineering firms, general contractors, and petrochemical and industrial gas companies, as well as pipeline, terminal, and oil and gas marketing companies. The company was founded in 1989 and is headquartered in Tulsa, Oklahoma.
Advisors' Opinion: - [By Travis Hoium]
What: Shares of energy service provider Matrix Service (NASDAQ: MTRX ) jumped 10% today after an analyst upgraded the stock.
So what: Analysts at Sidoti upgraded the stock from "neutral" to "buy" today. This was the only news out about the stock and drove traders to push volume to nearly twice its three-month average. �
