United Technologies Corp.'s (UTX) Pratt & Whitney engine unit is nearing a deal with the U.S. government for about $2 billion worth of engines for the Lockheed Martin Corp.�� F-35 Joint Strike Fighter, the company announced on Thursday. The clause of the contract suggests that the company will be engaged in two years of production of about 80 engines. The agreement comes after the U.S. government this year criticized Pratt & Whitney for not doing enough to reduce the cost of the turbine, called the F135. The Pentagon has been putting pressure on Lockheed Martin and Pratt & Whitney to cut their prices as the government tries to pare the costs of its most expensive weapons program. The Pentagon expects to pay about $399 billion for the F-35, including the purchase of 2,443 jets.
Pratt & Whitney and the U.S. Department of Defense had last year reached an agreement in principle on a $1 billion production contract for the sixth batch of engines to be used on F-35 Lightning II warplanes. The contract would cover 38 total engines, including program management, engineering support, production and spare parts.
Top Promising Stocks To Own 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 Michael Vodicka]
And one of my favorites is DryShips, Inc. (DRYS). The company is a global leader in the dry goods shipping industry, owning a fleet of more than 42 dry-bulk carriers and a fleet of 10 drill rigs through a majority owned subsidiary.
- [By Jon C. Ogg]
DryShips Inc. (NASDAQ: DRYS) has been addicted to raising capital via share sales in the past, and shares are facing real pressure on Monday based on yet another stock offering. The shipping player announced on Friday after the closing bell that it entered into an equity offering sales agreement with Evercore Group to sell up to $200 million of common shares in the company.
- [By FinanceGuru]
DryShips (DRYS) price continues to dip a bit - making me continually wonder when the right time is going to be to step in and buy. When is DRYS going to be prime for the picking? In the midst of some bearish headlines (BDI falling, short interest rising), it's looking more and more like now might be the time to start a position in DRYS.
10 Best Sliver Stocks To Watch Right Now: TSR Inc.(TSRI)
TSR, Inc., together with its subsidiaries, provides contract computer programming services to commercial customers, and state and local government agencies in the metropolitan New York area, New England, and the mid-Atlantic region. It offers technical computer personnel to supplement in-house information technology capabilities. The company provides its staffing services in the areas of mainframe and mid-range computer operations, personal computers and client-server support, Internet and e-commerce operations, voice and data communications, and help desk support capabilities. TSR, Inc. was founded in 1969 and is based in Hauppauge, New York.
Advisors' Opinion:- [By Geoff Gannon] ay.
TSRI is typical of the kinds of net-nets you find on this list. The number of net-nets with five straight years of profits is about a dozen stocks. TSR is one of them. It is controlled by the founder. He formed the company 42 years ago. And he still owns 46% of the company today.
Other companies on the list of profitable net-nets also involve one man (or one family) control. These include:
路 Micropac (MPAD)
路 ADDvantage Technologies (AEY)
路 Solitron Devices (SODI)
路 OPT-Sciences (OPST)
Micropac
Micropac is 76% owned by Heinz-Werner Hempel. He�� a German businessman. You can see the German company he founded here. He�� had control of Micropac for a long-time. I don�� have an exact number in front of me. But I would guess it�� been something like 25 years.
ADDvantage
ADDvantage Technologies is controlled by the Chymiak brothers. See the company�� April 4 press release explaining their decision to turn over the CEO position to an outsider. Regardless, the Chymiaks still control 47% of the company. Ken Chymiak is now chairman. And David Chymiak is still a director and now the company�� chief technology officer. Clearly, it�� still their company.
By the way, the name ADDvantage Technologies has nothing to do with the Chymiaks. Today�� AEY really traces its roots to a private company called Tulsat. The Chymiak brothers acquired that company about 27 years ago. So, effectively, when you buy shares of AEY you are buying into a 27-year-old family-controlled company.
That�� pretty typical in the world of net-nets.
Solitron
Solitron Devices is 29% owned by Shevach Saraf. He has been the CEO for 20 years. The post-bankruptcy Solitron has never known another CEO. Before the bankruptcy, Solitron was a much bigger, much different company. So even though we are not talking about the founder here ��and even though 70% of the company�� shares are not held by the CEO
10 Best Sliver Stocks To Watch Right Now: Sunshine Heart Inc (SSH)
Sunshine Heart, Inc., incorporated on August 22, 2002, is an early-stage medical device company focused on developing, manufacturing and commercializing its C-Pulse Heart Assist System for treatment of Class III and ambulatory Class IV heart failure. The C-Pulse Heart Assist System utilizes the scientific principles of intra-aortic balloon counter-pulsation applied in an extra-aortic approach to assist the left ventricle by reducing the workload required to pump blood throughout the body, while increasing blood flow to the coronary arteries. As of December 31, 2011, the Company was in the process of obtaining regulatory approvals necessary to sell its product.
The Company has developed tools to allow the C-Pulse to be implanted through a small pacemaker-like incision between the patient�� ribs and sternum rather than a sternotomy. Patients implanted through its minimally invasive procedure require a hospital stay of four to seven days in connection with implantation of the C-Pulse System, after which they return home. During the year ended December 31, 2011, the Company completed enrollment and implantation of 20 patients in the North American feasibility phase of its trial. In April 2011, the Food and Drug Administration (FDA) approved an expansion protocol to allow the Company to implant up to 20 additional patients and add two additional centers to its feasibility study.
The Company competes with Thoratec Corporation, HeartWare International Inc., CircuLite, Inc., CardioKinetix, Inc., AbioMed, Inc., Jarvik Heart, Inc., MicroMed Technology, Inc., SynCardia Systems, Inc., Terumo Heart, Inc., WorldHeart Corporation in the United States and Europe, and Berlin Heart GmbH in Europe.
Advisors' Opinion:- [By John Udovich]
Small cap heart stocks Sunshine Heart Inc (NASDAQ: SSH), Abiomed, Inc (NASDAQ: ABMD) and AtriCure Inc (NASDAQ: ATRC) each find different ways go to the heart of the problem for cardiac�patients and have all been good performers for investors this year. After all and according to statistics collected by the CDC, heart disease is the leading cause of death for both men and women as about 600,000 people die of heart disease in the United States every year���accounting�for 1 in every 4 deaths. Moreover, roughly 715,000 Americans have a heart attack every year and�ff these, 525,000 are a first heart attack and 190,000 happen to people who have already had one. In other words, there is a big market for the following small cap heart stocks to address:
10 Best Sliver Stocks To Watch Right Now: AMERIPRISE FINANCIAL SERVICES INC. (AMP)
Ameriprise Financial Inc., through its subsidiaries, provides a range of financial products and services in the United States and internationally. The company�s Advice and Wealth Management segment offers financial planning and advice, as well as brokerage and banking services primarily to retail clients through its financial advisors. The Asset Management segment provides investment advice and investment products to retail and institutional clients. The Annuities segment offers variable and fixed annuity products to retail customers through affiliated and unaffiliated advisors, and financial institutions. The Protection segment provides various protection products through financial advisors to address the protection and risk management needs of retail clients, including life, disability income, and property-casualty insurance. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ame riprise Financial Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.
Advisors' Opinion:- [By Ian Katz]
��he consumer is still in a holding pattern, still waiting for better employment prospects,��said Russell Price, senior economist at Ameriprise Financial Inc. (AMP) in Detroit.
- [By Zacks]
Currently, shares of T. Rowe Price carry a Zacks Rank #2 (Buy). Among other investment managers, Invesco Ltd. (NYSE: IVZ) is scheduled to report December quarter end results on Jan 30, Legg Mason Inc. (NYSE: LM) on Jan 31 and Ameriprise Financial, Inc. (NYSE: AMP) on Feb 4.
- [By U.S. News]
Getty Images Recently, a client came to me with a difficult dilemma. He was retired and living comfortably but didn't have much room in his budget for additional expenses. His son was a high-ranking executive with a midsize company. He was married, with three children, all of whom were in private school in New York City. The son lost his job as a consequence of restructuring. He was having difficulty finding another position at anything close to his prior income. He had been looking without success for more than six months. He was at a point where he could no longer meet his substantial monthly expenses. He asked my client to provide the funds necessary to maintain his lifestyle and the education of his children, until he was able to "land on his feet." My client could afford to make these payments for a limited period of time but his retirement plans would be jeopardized if the time period was prolonged and if his son did not pay him back. He asked for my advice. For many Americans, the goal of helping children and grandchildren pay for their education and preserving wealth to leave to their children is an important goal. Unfortunately, the 2008 recession reduced the confidence of investors in their ability to meet those goals. According to a report prepared by Ameriprise Financial (AMP), only 24 percent of those surveyed in 2012 were "very confident" they could help with education and only 16 percent had confidence in their ability to leave an inheritance to their children. What is more troubling is the finding that only one-third of those surveyed felt very confident in their ability to provide adequately for themselves and their family. My client had never discussed his finances with his children. He is not alone. More than one-third of the parents of boomers believe they haven't adequately discussed finances with their children, according to the Ameriprise study. Their children were often reluctant to engage in these discussions with aging parents b
10 Best Sliver Stocks To Watch Right Now: Commerce Bancshares Inc.(CBSH)
Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank, N.A. that provides various general banking services to individuals and businesses. It operates in three segments: Consumer, Commercial, and Wealth. The Consumer segment includes the retail branch network, consumer installment lending, personal mortgage banking, consumer debit and credit bank card activities, and student lending. The Commercial segment provides various corporate lending, merchant and commercial bank card products, leasing, and international services, as well as business and government deposit and cash management services. The Wealth segment offers traditional trust and estate tax planning services, brokerage services, and advisory and discretionary investment portfolio management services to personal and institutional corporate customers. This segment also manages a family of proprietary mutual funds, which are available for sale to trust and general retail customers. The comp any, through its other non-banking subsidiaries, involves in underwriting credit life and credit accident, and health insurance; selling property and casualty insurance; private equity investment; securities brokerage; mortgage banking; and leasing activities. It serves customers through a network of branches and ATM machines, online banking, and a central contact center from approximately 370 locations in Missouri, Kansas, Illinois, Oklahoma, and Colorado. Commerce Bancshares, Inc. was founded in 1966 and is headquartered in Kansas City, Missouri.
Advisors' Opinion:- [By BLOGS.BARRONS.COM]
Commerce Bancshares: Davidson likes the mid-sized bank because of its conservative business model. Commerce Bancshares�(CBSH) has been a�victim of the low interest rate environment according to Davidson. ��heir net interest margin has been under pressure and earnings have been a little light versus expectations.��The stock is down a little more than 2% this year. ��heir conservative asset mix is what led to the shortfall, that�� music to our ears.���/p>
10 Best Sliver Stocks To Watch Right Now: Southcross Energy Partners LP (SXE)
Southcross Energy Partners, L.P., incorporated on April 12, 2004, is a limited partnership. The Company owns, operates, develops and acquires midstream energy assets. The Company provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation services to its producer customers, under fixed-fee and fixed-spread contracts, and it also sources, purchases, transports and sells natural gas and NGLs to its power generation, industrial and utility customers. Its assets are located in South Texas, Mississippi and Alabama. During the year ended December 31, 2011, its South Texas assets, which consist of approximately 1,445 miles of pipeline and two processing plants and accounted for approximately 77% of its revenues. Its Mississippi and Alabama assets, which consist of approximately 626 and 519 miles of pipeline, respectively, provide transportation of natural gas to its power generation, industrial and utility customers, as well as to unaffiliated interstate pipelines. The assets in its South Texas region are located between Houston and Freer. These assets consist of approximately 1,445 miles of pipeline ranging in diameter from 2 inches to 20 inches. In March 2014, the Company acquired natural gas pipelines near Corpus Christi, Texas along with contracts related to those pipelines.
South Texas
The assets in the Company�� South Texas region are located between Houston and Freer, a city, which is located approximately 50 miles west of Corpus Christi. These assets consist of approximately 1,445 miles of pipeline ranging in diameter from 2 inches to 20 inches with an estimated design capacity of 590 million cubic feet per day. Its South Texas region also includes 29 compressors with total compression of approximately 35,000 horsepower, two processing plants with total processing capacity of 185 million cubic feet per day and contracted third-party processing capacity of 83 million cubic feet per day, two treatin! g plants and one fractionator. During 2011, the systems in this region had an average throughput of 379 million cubic feet per day, including the processing plants, which processed an average of 75 million cubic feet per day in that period. It divides its South Texas region into four asset systems Vanderbilt and Gulf Coast gathering systems, which it refers to collectively as the Gulf Coast system; CCNG Transmission, which refer to as the CCNG system; Gregory gathering system, Gregory processing plant and Gregory fractionation plant, and Conroe gathering system and Conroe processing plant.
The pipelines in its South Texas segment are connected to multiple producing fields, including the Eagle Ford shale area. In addition to tie-ins to its two processing plants, its gathering systems are also connected to two processing plants owned by third parties and to a range of intrastate and interstate pipelines.
The Gulf Coast system is located throughout 13 counties in South Texas, including parts of the Eagle Ford shale area, and consists of two pipeline systems. The Gulf Coast system includes approximately 743 miles of pipeline ranging from 2 inches to 20 inches in diameter with an estimated design capacity of 205 million cubic feet per day. The system also includes seven compressors with compression of approximately 7,136 horsepower on a combined basis. During 2011, this system had an average throughput of approximately 114 million cubic feet per day.
The Gulf Coast system acquires natural gas from over 100 producers at prices that are at a fixed discount to the Houston Ship Channel Index price. The gas is delivered to third-party processing plants, including the Formosa processing plant located in Point Comfort, Texas and the Hilcorp processing plant located in Old Ocean, Texas. In the case of the Hilcorp processing plant, its customers pay it gathering fees to transport approximately 25 million cubic feet per day from their wells to this processing plant. Its producer ! customers! on the Gulf Coast system range from small independent exploration and production companies to producers, such as Chesapeake Energy and Devon Energy.
The CCNG system is located in the Eagle Ford shale area and consists of over 417 miles of transmission and gathering pipeline ranging from 2 inches to 20 inches in diameter. The system also includes one compressor with total compression of approximately 1,260 horsepower. During 2011, the system had an average throughput of 190 million cubic feet per day. Natural gas is supplied to this system from approximately 35 field receipt points, treating plants and third party gathering systems and pipelines, including Texas Eastern, Kinder Morgan and Conoco Lobo. Producers who supply or transport natural gas on the CCNG system include Swift Energy, EOG, Exxon, Comstock and Apache. Liquids-rich gas can be transported from the western end of the system to its Woodsboro and Gregory processing plants. Dry gas is brought into the dry gas portions of the system along with residue gas from the outlets of its processing plants. Gas in the system is purchased and sold, under fixed-spread arrangements, as well as transported on behalf of shippers. The CCNG system sells its dry natural gas in the industrial market around the city of Corpus Christi. A portion of the throughput on its CCNG system is processed at its Gregory processing plant or at the Formosa processing plant located in Point Comfort, Texas.
The Gregory gathering system is located near Corpus Christi, Texas and consists of approximately 266 miles of pipeline ranging from 4 inches to 18 inches in diameter. The system also includes one compressor. Its Gregory processing plant is a cryogenic natural gas plant comprised of two units collectively having a total capacity of 135 million cubic feet per day. Its Gregory processing plant processes natural gas from the Gregory gathering system, as well as gas originating in its CCNG System.
Produced NGLs are fractionated in the Compan! y�� fra! ctionator located on the same site as the Company�� Gregory processing plant. Purity ethane is shipped through pipeline to Dow Chemical while remaining NGLs are shipped through truck to local markets, which yield a premium to available pipeline rates. All of its customers on the Gregory gathering system pay a flat fee for natural gas to be gathered in the system and processed at the Gregory processing plant. Its Conroe processing plant is a 50 million cubic feet per day cryogenic natural gas plant. The plant recovers approximately 65% of the ethane contained in the inlet natural gas, depending on loads and temperatures.
Mississippi
The assets in the Company�� Mississippi region are located in the southern half of the state and comprise the intrastate pipeline system in Mississippi. The Mississippi assets consist of approximately 626 miles of pipeline ranging in diameter from 2 inches to 20 inches. The Mississippi system also includes two compressors. During 2011, the system had an average throughput of 86 million cubic feet per day. It generates revenues from its Mississippi assets by charging fixed transportation fees to shippers and by entering into fixed-spread contracts with suppliers and power generation, industrial and utility customers. During 2011, fixed-fee transportation contracts comprised 34.8% of the volumes it transported on its Mississippi system and fixed-spread contracts comprised the remaining 65.2% of its volumes.
Alabama
The assets in the Company�� Alabama region are located in northwest and central Alabama and consist of 519 miles of natural gas gathering pipeline ranging from 2 inches to 16 inches in diameter. The Alabama system also includes 22 compressors with total compression of approximately 24,537 horsepower. The system has an estimated design capacity of 375 million cubic feet per day. The gas supply to the system is coalbed methane gas from the Black Warrior Basin with incremental volumes gathered from conventional ! gas wells! . It gathers, transports, compresses, purchases and sells natural gas in Alabama and offers both intrastate transportation and interstate transportation services. During 2011, 81% of the volumes on its Alabama system were transported pursuant to fixed-fee transportation contracts and 19% of the volumes on the system were purchased from producers and then transported and sold to power generation, industrial and utility customers pursuant to fixed-spread contracts.
The Company competes with Copano Energy, L.L.C., Energy Transfer Partners, L.P., Enterprise Products Partners LP and Kinder Morgan Energy Partners LP.
Advisors' Opinion:- [By Lisa Levin]
Southcross Energy Partners LP (NYSE: SXE) shares rose 11.05% to $20.61. The volume of Southcross Energy shares traded was 624% higher than normal. Southcross Energy and TexStar Midstream Services announced a combination agreement.
10 Best Sliver Stocks To Watch Right Now: KAR Auction Services Inc (KAR)
KAR Auction Services, Inc., together with its subsidiaries, provides vehicle auction services in North America. It operates in three segments: ADESA Auctions, IAA, and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities. This segment also provides value-added services, such as auction related, transportation, reconditioning, inspection, title and repossession administration and remarketing, and analytical services. The ADESA Auctions segment sells its products and services through commercial fleet operators, financial institutions, rental car companies, new and used vehicle dealers, and vehicle manufacturers and their captive finance companies to franchise and independent used vehicle dealers. The IAA segment offers salvage vehicle auctions and related services that facilitate the remarketing of damaged or low value vehicles designated as total losses by insurance companies and charity donation vehicles, as well as recovered stolen vehicles. This segment also provides inbound transportation, titling, salvage recovery, and claims settlement administrative services. The AFC segment offers floorplan financing, a short-term inventory-secured financing, to independent used vehicle dealers. As of December 31, 2012, the company had a network of 67 whole car auction and 163 salvage auction locations, as well as serviced auctions through 104 locations. The company was formerly known as KAR Holdings, Inc. and changed its name to KAR Auction Services, Inc. in November 2009. KAR Auction Services, Inc. was founded in 2006 and is headquartered in Carmel, Indiana.
Advisors' Opinion:- [By Geoff Gannon] ore explicit in detailing the competitive position of Copart and Insurance Auto Auctions. It even gave market share data.
This is common. Often one company will choose not to give names or put percentages on certain competitive facts. The other company will do so. And even when that is not the case, the two companies will often make statements that ��when taking together ��can give you rough indications of certain realities that neither company entirely intended to provide.
The same is true for certain suppliers and customers. Although this is complicated by size. Very large customers of small companies are not good sources of information. But smaller companies often provide better insights into the larger suppliers, customers, etc., they deal with. That's because ��due to their small size ��more information is material and is explained in detail.
I have found situations where one company simply says who the customer is that they are supplying. While the other company explains what product that supply goes into, the purchase amount, whether it is an exclusive arrangement, etc.
So it is always important to ��at a minimum ��read the 10-Ks, 14As, and (where available) S-1s of every public company in the industry. This will give you a lot of insight into the competitive situation. Sometimes it is helpful to also look at customers and suppliers. However, this is not true of very large customers and suppliers because they will not discuss the specific area you are interested in.
For example, Honeywell is a large customer of George Risk. It would do me no good to study Honeywell to learn about George Risk. Honeywell is a huge company. What they buy from George Risk is irrelevant to their shareholders. So they do not discuss it.
An exception to this is where the product sold is going into a huge "generational" type project. Examples include defense, aerospace, video game consoles, operating systems, etc. This can be very hel
No comments:
Post a Comment