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Why you’ll be paying more at the pump

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Why you’ll be paying more at the pump

One step forward, one step back… as crude oil prices were up more than 3% on Tuesday. This jump coming on the heels of the US State Department announcement that companies will be required to cut all oil imports from Iran by November. Interestingly enough, OPEC and other producers agreed to raise output to prevent this exact thing (price increase) from happening.

The United States is committed… to completely isolating Iran. This includes cutting Iranian crude imports. This is significant because Iran is OPEC’s third-largest oil producer, exporting more than two-million barrels per day. Companies, such as Total and Shell, have also committed to avoid Iranian oil. Other oil companies may follow suit in order to maintain relations with the US.

We seriously want gas… to stay under $3 a gallon in the United States. Other big users, such as India and China, would also appreciate some increased oil production to keep prices from rising too high. Saudi Arabia is planning to increase output to record high next month – from 10 million to 10.8 million barrels per day. We may also see more demand for US oil specifically to cover the shortage.

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Welcome to the Dow, Walgreens

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Welcome to the Dow, Walgreens

A company that needs no introduction… unless you live under a rock – it’s Walgreens! Otherwise known as Walgreens Boots Alliance, they are the new kid on the block. If you’re wondering what a ‘Boots Alliance’ is, it is referring to the company’s acquisition of Alliance Boots in 2015. Boots is a drugstore retailer and Alliance a drug wholesale distribution company.

And they are growing… after purchasing more than 1,900 Rite Aid stores last March. Thanks to their recent deals, analysts expect Walgreens’ earnings per share to increase by an average of 12% over the next few years. And while they are the newest, they are not the smallest, coming in as the 23rd largest company in the Dow based on stock price.

So why Walgreens… and not CVS? A spokesman for S&P Dow Jones Indices went with the classic “no comment” response to that very question. However, there is an argument for CVS, which has generated more revenue, is worth more, and has about the same weighting compared to Walgreens. Not to mention that CVS may be acquiring insurer Aetna in the near future for $67 billion. Actually, maybe it should be CVS – but that’s none of our business.

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GE shares surge (not a typo) after it reveals plan to spin off health-care, exit oil services

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GE shares surge (not a typo) after it reveals plan to spin off health-care, exit oil services

GE wants you to know… that they are an aviation, power and renewable energy company now. GE Healthcare will be spun-off (it will be independent of GE, in other words) and they will exit their stake in oil services in the next two to three years. The company’s famed quarterly dividend will be maintained until the health-care unit is effectively separated. At that point, the dividend will likely be lowered.

It’s not all gloom and doom… as GE shares rose 7.76% on Tuesday – their best day in over three years. For the record, they’re still way down over the past year, at -54%. But hey, they are making strides and actually improving their situation instead of wallowing in a pile of burnt-out lightbulbs.

And that’s all folks… as the CEO stated that the company is finished making restructuring moves. The company plans to reduce their mountain of debt by $25 billion by 2020. However, they are sitting atop the Mount Everest of debt mountains, and that is only a fraction of their $70+ billion debt-load.

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Love the underdog? Check out this coffee company that is taking on Starbucks

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Love the underdog? Check out this coffee company that is taking on Starbucks

It’s the business form of “rope-a-dope” … as made famous by the late Muhammed Ali. The Coffee Bean & Tea Leaf is ready to go on the offensive against their fatigued, but still very formattable opponent, Starbucks. John Fuller, the CEO of The Coffee Bean believes that people may be growing tired of Starbucks and would welcome an alternative option.

Who are the guys, anyway?… The Coffee Bean is a company that serves high-quality coffee in a cozy atmosphere. They offer “third wave coffee” which likens high-quality coffee to fine wine, rather than simply a commodity. If you haven’t heard of ‘em, we’re right there with ya. The company has just 311 stores in the United States, mostly in the SoCal area.

Just like Fort Minor… you will remember the name. In five to ten years, the coffee company hopes to turn their 311 stores into 1,000. A far cry from Starbucks’ 15,000 stores, but you have to start somewhere, right? So, if you happen upon the ambitious coffee-maker, give them a try – and be sure to let us know if they’re legit or if we should just stick to Starbucks.

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