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Next Stop, Infrastructure?

In an effort to rev up the sluggish economic recovery, President Obama has proposed $50 billion in spending to improve the nation’s roads, airports and railways. The President’s speech at a Labor Day event yesterday in Milwaukee, Wisconsin called it a long-term investment intended to create jobs. Could this really spur the economy, or is it being irresponsible for the federal government to further extend deficit spending in this way?
Though government efforts so far have succeeded in … [visit site to read more]


AstraZeneca Inks Agreement

Recently, AstraZeneca PLC (NYSE:AZN) and India based generic company Aurobindo Pharma Ltd. inked a licensing and supply agreement aimed at enabling the Indian company to supply solid dosage and sterile products for emerging markets.  The products will be marketed in various emerging markets across the globe. The scope of the deal will expanded with time.
This deal, whose financial terms were not disclosed, highlights AstraZeneca’s efforts to strengthen its presence in emerging markets. The … [visit site to read more]


Paying Dividends

Last week the stock market had a good week, and the bond market corrected a bit. Still, relative to the yield on the 10-year t-note of 2.71% on Friday, stocks look extremely attractive.
The S&P 500 is trading for just 13.4x consensus expectations for 2010, and 11.6x 2011 expectations. That translates into earnings yields of 7.46% and 8.62%, respectively. However, an earnings yield does not provide you with that much cash in your hand.
For an apples to apples comparison, it is the dividend … [visit site to read more]


Denbury Cancels ENP Deal

Plano, Texas-based Denbury Resources Inc. (NYSE:DNR) and Encore Energy Partners LP (NYSE:ENP) have terminated their previously announced deal related to Elk Basin assets sale. Denbury had initially signed the deal for significant capital requirements for its core CO2 tertiary operations.
 
Both the parties noted that no agreement could be reached on the value of the potential tertiary reserves.
 
Denbury has now shifted its focus to sell its interest in Encore Energy Partners GP LLC, the … [visit site to read more]


Mid-America Buys Texas Property

Mid-America Apartment Communities Inc. (NYSE:MAA), an apartment-only real estate investment trust (REIT), recently acquired The Venue at Stonebridge Ranch, an upscale 250-unit apartment community in Dallas, Texas MSA (Metropolitan Statistical Area) for an undisclosed amount.
Developed in 2000, The Venue at Stonebridge Ranch features superior amenities such as oversized garden bathtubs, walk-in showers, walk-in closets and a resort-style pool, along with WiFi areas and garages. The acquisition is … [visit site to read more]


Equinix Poised For Growth

Leading data center solutions provider Equinix Inc. (NASDAQ:EQIX) announced the expansion of its second International Business Exchange (IBX) data center, TY2, in Tokyo. The expansion will strengthen the company’s footprint in Tokyo and serve the growing demand for data center services from cloud and IT service providers, content companies and financial firms in Japan.
 
The company expects to add 140 cabinets at a cost of $9.0 million by the fourth quarter of 2010. Upon completion, the total … [visit site to read more]


Vornado Realty To Buy Back Debt

Vornado Realty Trust (NYSE:VNO), a leading real estate investment trust (REIT), recently announced a debt buyback offer totaling $404.5 million due 2026 and 2027. The company would fund the debt buyback with cash from its operating partnership.
The offer included about $382.1 million 3.63% convertible senior debentures due 2026 and $22.5 million 2.85% convertible senior debentures due 2027. Vornado Realty has priced the offering at $1,020 for every $1,000 of the 2026 debentures and $1,015 for … [visit site to read more]


NuStar Remains Neutral

We are maintaining our Neutral recommendation on NuStar Energy L.P. (NYSE:NS) units with a target price of $62.
San Antonio, Texas-based NuStar Energy is a master limited partnership (“MLP”) engaged in the transportation and storage of crude oil as well as refined products in the U.S., the Netherlands Antilles, Canada, Mexico, the Netherlands and the U.K.
The partnership is one of the largest asphalt refiners and marketers in the U.S. and the second largest independent liquids terminal … [visit site to read more]


JDS Uniphase Enters New Venture

The leading supplier of fiber optic components and modules used in advanced high-speed communications networks, JDS Uniphase Corporation (NASDAQ:JDSU) is trying to get a foothold as a chip supplier in the concentrated photovoltaic (CPV) market.
CPV cells technology is considerably expensive and is designed to capture concentrated sunlight within solar panels for electrical power generation. However, according to various industry researches, the CPV market size may go beyond $3 billion by 2015 and … [visit site to read more]


Gilead Files MAA For HIV Drug

Gilead Sciences Inc. (NASDAQ:GILD) recently announced that it has submitted a Marketing Authorization Application (MAA) to the European Medicines Agency (EMA) seeking approval for its once daily, single tablet, fixed dose combination of Truvada and TMC278 (rilpivirine) as a HIV treatment for adult patients.
The MAA will first be reviewed by the Committee for Medicinal Products for Human Use (CHMP) and, based on the CHMP’s opinion, the EMA will deliver its decision regarding the approval of the … [visit site to read more]


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