David Paul Morris/Bloomberg via Getty Images Applications for U.S. home mortgages decreased last week with potential buyers shying away from the market as rates held steady just below their two-year highs. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, declined 3.7 percent in the week ended July 26. It was the seventh week in a row the index has been lower. The MBA's seasonally adjusted index of loan requests for home purchases, a leading indicator of home sales, fell 3.4 percent. Fixed 30-year mortgage rates averaged 4.58 percent, unchanged from the week before and only 10 basis points below a two-year high hit earlier in July. Rates have risen sharply since early May, pushed higher by the Federal Reserve's plan to start slowing its economic stimulus later this year if the economy progresses as expected. The Fed is currently buying $85 billion in bonds a month to keep borrowing costs low. The cheap mortgage rates have helped lure homebuyers and worries have emerged that higher costs could take some of the strength out of the housing market's recovery. Still, most economists don't expect it to derail housing's growth altogether. Rates have risen about 1 percentage point since early May, but still remain low by historical standards. Refinancing activity has been hit harder than purchases by the rise in rates, which makes refinancing less lucrative. The gauge of refinancing applications fell 3.8 percent. The refinance share of total mortgage activity was unchanged at 63 percent of applications. The survey covers more than 75 percent of U.S. retail residential mortgage applications, according to MBA.
Best Recreation Companies To Own In Right Now: Advance Auto Parts Inc(AAP)
Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.
Advisors' Opinion:- [By Ben Eisen]
Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) �, Nordstrom Inc. (JWN) �, PetsMart, Inc. (PETM) �, Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) �, Target Corp. (TGT) �, and Urban Outfitters, Inc. (URBN) .
- [By Ben Levisohn]
Investors really like Advance Auto Parts (AAP) deal to buy a chain of repair shops–so much so that a stock that finished yesterday in the low 80s is now trading in the mid-90s.
Agence France-Presse/Getty ImagesReuters has the details on the deal:
Advance Auto Parts Inc will buy 1,418 outlets of the Carquest chain to boost its auto repair operations to complement its car parts business, sending its shares up as much as 20 percent to a record high.
Advance Auto, which sells products such as batteries, air fresheners and engine parts, said it would buy General Parts International Inc for just over $2 billion, creating the largest North American retailer of auto parts.
General Parts is the biggest operator of the Carquest chain, which runs auto repair shops and car parts stores. General Parts also owns Worldpac, the No.1 supplier of replacement parts for imported car and truck brands.
Reuters notes that the finished product will be the largest supplier of auto parts by sales, just beating out Autozone (AZN).
Credit Suisse analyst Simeon Gutman and team call the deal a “smart strategic acquisition.” They write:
The acquisition would solve two important issues for AAP. First, it has struggled in the DIFM segment, primarily due to a weaker and less accessible distribution network. General Parts has one of the most established distribution networks in the country (~40 DCs vs. AAP’s 10) and long standing relationships with mechanics nationwide. More importantly, WORLDPAC (estimated $1 billion in sales) is the leader in foreign parts with AAP owning the number three player and we see synergies from AI flooding into WORLDPAC.
A meaningfully positive aspect of the transaction is targeted annual cost savings of roughly $160 million within three years (~6.1% of acquired sales). This seems relatively consistent with previous DIY Auto deals. The deal is expected to be 20%+ accretive to FY 14 ca
5 Best Cheap Stocks To Buy For 2014: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
Advisors' Opinion:- [By Charles Sizemore]
The “typical” property for Realty Income would be your local Walgreens (WAG) or CVS (CVS) pharmacy ��a high traffic, highly visible location that you pass on your daily commute. And under a triple-net lease, it is the tenant’s responsibility to take care of the property and to pay the taxes and expenses.� The landlord�� only role is to collect the rent check. Not bad work, if you can find it.
- [By CRWE]
CVS Caremark Corporation (NYSE:CVS) reported that Dave Denton, executive vice president and chief financial officer of CVS Caremark Corporation, will be speaking at William Blair & Company’s Growth Stock Conference on Tuesday, June 12, 2012, at approximately 8:50 a.m. CDT (9:50 a.m. EDT).
- [By Ben Brody]
The companies -- Wal-Mart (WMT), Costco (COST), Walgreens (WAG), FreshDirect, CVS (CVS) and Drugstore.com -- agreed to add unit prices to their product pages over the next nine months.
5 Best Cheap Stocks To Buy For 2014: Express-1 Expedited Solutions Inc.(XPO)
XPO Logistics, Inc. provides third-party logistics services using a network of relationships with ground, sea, and air carriers in the United States, Mexico, and Canada. It operates in three segments: Express-1, Concert Group Logistics, and Bounce Logistics. The Express-1 segment offers ground expedited surface transportation services for freight. It operates a fleet ranging from cargo vans to semi tractor trailer units. The Concert Group Logistics segment provides domestic and international freight forwarding services through a network of independently owned stations. Its domestic freight forwarding services include air charter, expedites, and time sensitive services, as well as cost sensitive services comprising deferred delivery, less than truckload, and full truck load services; and international freight forwarding services consist of on-board courier and air charters, time sensitive services, less-than-container and full-container-loads, and vessel charters. This segm ent also offers documentation on international shipments, customs clearance and banking, trade show shipment management, time definite and customized product distributions, reverse logistics and on site asset recovery projects, installation coordination, freight optimization, and diversity compliance support services. The Bounce Logistics segment provides premium freight brokerage services for truckload shipments. The company serves approximately 4,000 retail, commercial, manufacturing, and industrial customers through 6 U.S. operations centers and 22 agent locations. It offers its services to the automotive manufacturing, automotive components and supplies, commercial printing, durable goods manufacturing, pharmaceuticals, food and consumer products, and high tech sectors. The company was formerly known as Express-1 Expedited Solutions, Inc. and changed its name to XPO Logistics, Inc. in September 2011. XPO Logistics, Inc. was founded in 1989 and is based in Buchanan, Michi gan.
Advisors' Opinion:- [By Vera Yuan]
We initiated a new position in Aircastle Ltd. (AYR), an aircraft leasing company with a flexible business model and a rational capital allocation philosophy. We took advantage of an opportunity to purchase shares in the heavily capitalized Georgia bank State Bank Financial Corp. (STBZ) as the depressed stock price reflected investors��lack of patience with a slower than expected pace of capital deployment. We like State Bank�� management team led by Georgia banker Joe Evans. This management team has experience successfully building and selling other Georgia banks. We also received shares of transportation infrastructure company XPO Logistics, Inc. (XPO) as a result of its acquisition of holding Pacer International, Inc.
5 Best Cheap Stocks To Buy For 2014: S&P GSCI(GD)
General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:
- [By Rich Smith]
The Department of Defense awarded more than $961 million worth of contracts to a total of 17 awardees on Thursday. Notable awards to publicly traded companies included:
- [By Rich Smith]
So what's really going on over there in Washington today? Is defense spending stalled, or will it rise again? And what does this mean for ultra-low-P/E-bearing stocks like Boeing (NYSE: BA ) , Lockheed Martin� (NYSE: LMT ) , Northrop Grumman� (NYSE: NOC ) , and General Dynamics� (NYSE: GD ) .
- [By Rich Smith]
Principal contractors, should the sales be approved, include Textron (NYSE: TXT ) for the helicopter sale and General Dynamics (NYSE: GD ) for the Strykers. No single principal contractor has been identified as associated with the spare parts sale, but both the HETTs and the HEMTTs, for example, are manufactured by Oshkosh (NYSE: OSK ) , while Britain's BAE Systems (NASDAQOTH: BAESY ) builds the recovery vehicles, howitzers, and M113s.
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