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The Wall Street Transcript publishes Beverage Industry Issue Leading analysts examine the Beverage Industry in the just-published edition of The Wall Street Transcript, a vital review for investors and companies. 1) An in-depth roundtable forum featuring three prominent analysts: Greg Allison of Alliance Capital, Roy Burry of Brown Brothers Harriman and Skip Carpenter of Donaldson, Lufkin & Jenrette. The panel examines stock performance, volume growth, product portfolio gaps, new products, cost issues, bottlers, brewers, marketing strategies, wine stocks, and industry concerns, about which Burry states, "Obviously, the group that has been in favor is technology. If something negative were to happen there and the stocks were to go down, what you would have would be investors looking around for places to put money. They would immediately rush back to consumer nondurables." Carpenter declares, "I think the question is, do the opportunities for the Coca-Cola Company (NYSE:KO) over the long term remain healthy, does Coca-Cola remain in a position to grow its worldwide operations? I would argue yes. I think some evidence is going to start to materialize, maybe more so as we move through the course of 2000." But Allison asserts, "I continue to think the expectations for Coke and Pepsi (NYSE:PEP) are too high." Other topics addressed by this distinguished panel: shelf space problems, international acquisitions, raw materials and packaging, execution risks, brewers' price wars, and the future outlook for the sector. The panel offers several investment recommendations, including: Coca-Cola Enterprises (NYSE:CCE), Coca-Cola Company (NYSE:KO), and Beringer (Nasdaq:BERW), about which Carpenter states, "I think Beringer has a very strong portfolio of recognizable brands at the consumer level. I think it is the best-managed company within the category. It has a more professional management team handling the business vis-a-vis many of these wine companies, which remain family-run businesses, and therein lies their problem." 2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or criticize 10 Beverage companies and managements, includes several recommendations and a few admonishments. High praise for management at the Adolph Coors Company (NYSE:RKY), as a specialist states, "The CEO, William K. Coors, is focused on sort of the executional tactics that it will take for them to grow earnings and to get the stock price up. Management is doing a very good job of laying out strategy." An analyst states, "Over the past four or five years Leo Kiely, COO at Coors, has got out of a lot of businesses that were non-strategic, and built the company image, its manufacturing and distribution segments to a point where his growth has been the envy of the industry." But not all managements fare so well with experts, as an analyst claims one beverage management team "with their reporting methods and so forth, has been taken down a peg" and that "What they pass off as operating earnings is sometimes conjectural." 3) Analyst Interview-Latin American Beverages-William Landers-Lehman Brothers. Landers states, "You should stick with Latin bottlers over Latin brewers because we think you're going to be seeing better organic growth in the soft drink sector than in the beer producers. While the situation in Brazil is critical, we believe that there still are some good investment opportunities out there." Other companies mentioned in this special 32-page Beverage Industry section include: Anheuser-Busch (NYSE:BUDE), Brahama (NYSE:BRH), Brown-Forman (NYSE:BF.B), Cadbury Schweps (NYSE:CSG), Celestial Seasonings (Nasdaq:CTEA), Clearly Canadian Beverage (Nasdaq:CCBC), Coca-Cola FEMSA (NYSE:KOF), Diageo plc (NYSE:DEO), Fortune Brands (NYSE:FO), Panamco (NYSE:PB), Pepsi-Gemex (NYSE:GEM), Robert Mondavi (Nasdaq:MOND), Seagram (NYSE:VO), Triarc (NYSE:TRY), and Whitman (NYSE:WH). The Wall Street Transcript publishes Specialty Chemicals Issue 3-29-99 Leading analysts examine the Specialty Chemicals Industry in the just-published edition of The Wall Street Transcript, a vital review for investors and companies. 1) An in-depth roundtable forum featuring four prominent analysts: Christopher Bodnar of Bear, Stearns & Co., Allan Cohen of First Analysis Securities, Tracy Marshbanks of First Analysis Securities, and Timothy Rankin of Franklin Mutual Advisers. The panel examines valuations, faster and slower growth markets, corporate strategies, European spinouts, M&A activity, and the Rohm & Haas (NYSE:ROH)/Morton (NYSE:MII) merger, about which Bodnar states, "I think that Rohm & Haas from a strategic standpoint made a smart move." But Cohen declares, "We are optimistic about this merger in the long term. In the near term we remain cautious because of a number of unknowns, a number of pieces that may not fit, and of course the price paid. The price was about 10 times EBITDA, but if you divide that between specialty chemicals and salt, a fair split might be 7 for the salt and 12.5 for the specialty chemicals." Rankin asserts, "Once you adjust for the value of the Lamineer product line, which runs through their income statement only as an expense item and clearly has some future value, and if you further adjust for a normal year in the salt business, adjusting for weather, I would agree with your 7 times EBITDA on salt, but I would suggest they're only paying about 9 times EBITDA for the specialty chemical assets. So I think it could be argued that Rohm & Haas is stealing Morton." Other topics addressed by this eminent panel: negative currency impacts, fine chemicals, pharmaceutical intermediates, electronic chemicals, water management, the growth market for plastics, investor concerns, and the future outlook for the sector. The panel offers several investment recommendations, including: ChemFirst (NYSE:CEM), Imperial Chemical (NYSE:ICI), and Lawter International (NYSE:LAW), about which Marshbanks states, "The stock that we find intriguing at the moment is Lawter International, primarily because they are starting to do the right things, but their valuation level is that of a company that never will get anything right. They have a strong management team in place." 2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or criticize 22 Specialty Chemical companies and managements, includes several recommendations and a few admonishments. Praise for Brad Buechler, CEO of Spartech Corporation (NYSE:SEH), as "number one on the list." Applause for R. Keith Elliot, CEO of Hercules, Inc. (NYSE:HPC), for his vision, "Give him credit for having the guts to step up to the plate and do something within an industry that had been suffering from paralysis over the last year or two." But, another specialty chemicals CEO doesn't fare so well with a buysider who states management, "created shareholder value by selling their companies. That's it." 3) Analyst Interview-Specialty Chemicals-Mark Gulley-Morgan Stanley Dean Witter. Gulley asserts, "Corning (NYSE:GLW) is the best of the bunch here with its leadership positions in optical fiber, fiber-optic cable, optical components, LCD glass, scientific glassware, and ceramic substrates for automotive catalytic converters." 4) Analyst Interview-Specialty Chemicals-Timothy Gerdeman-Salomon Smith Barney. Speaking about the new management team at Great Lakes Chemical (NYSE: GLK), Gerdeman declares, "Sluggish is not a word I would use when describing the new management team. In fact, one of the first tasks the new management team took on was to implement a sweeping restructuring program, ultimately leading to a 12% headcount reduction, and the identification and ultimate sale of underperforming and non-core assets, and manufacturing facility rationalization. The savings associated with the restructuring program are expected to generate $40 million of incremental annual operating income, or nearly a 20% increase at the earnings per share line in 2000 versus the 1998 base year earnings." Other companies mentioned in this special 34-page Specialty Chemicals section include: 3M (NYSE:MMM), A. Schulman (Nasdaq:SHLM), Airgas (NYSE:ARG), Akzo (Nasdaq:AKZOY), Albermarle (NYSE:ALB), Allied Signal (NYSE:ALD), Applied Materials (Nasdaq:AMAT), Arch Chemicals (NYSE:ARJ), Avery Dennison (NYSE:AVY), B.F. Goodrich (NYSE:GR), Berkshire Hathaway (NYSE:BRK.A), Cabot (NYSE:CBT), Calgon Carbon (NYSE:CCC), Cambrex (NYSE:CBM), Catalytica (Nasdaq:CTAL), ChiRex (Nasdaq:CHRX), Colgate (NYSE:CL), Crompton & Knowles (NYSE:CNK), Cytec (NYSE:CYT), DuPont (NYSE:DD), Ecolab (NYSE:ECL), Ethyl (NYSE:EY), Ferro (NYSE:FOE), Fuller (Nasdaq:FULL), Hercules (NYSE:HPC), Hexcel (NYSE:HXL), Intertape Polymer (AMEX:ITP), Life Technologies (OTCBB:LTEK), Lubrizol (NYSE:LZ), Lyondell (NYSE:LYO), M.A. Hanna (NYSE:MAH), MacDermid (NYSE:MRD), Millpore (NYSE:MIL), Minerals Technologies (NYSE:MTX), Nalco Chemical (NYSE:NLC), NuCO2 (Nasdaq:NUCO), Olin (NYSE:OLN), OM Group (NYSE:OMP), Pall (NYSE:PLL), Polymer Group (NYSE:PGI), PPG (NYSE:PPG), Praxair (NYSE:PX), Raychem (NYSE:RYC), RPM (NYSE:RPM), Sealed Air (NYSE:SEE), Sigma Aldrich (Nasdaq:SIAL), Summa (Nasdaq:SUMX), TETRA (NYSE:TTI), Union Carbide (NYSE:UK), Valley National Gases (Nasdaq:VNGI), Valspar (NYSE:VAL), W.R. Grace (NYSE:GRA), and Witco (NYSE:WIT). For a copy of this complete issue, which also contains interviews on other topics with analysts, money managers and CEOs, call (212) 952 7433 or use the web at http://secure.addy.com/archive/twst_order.html. There is a $175 charge for the issue. The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations. The Wall Street Transcript publishes Special Natural Gas Transmission & Distribution Industry Issue 3-22-99Leading analysts examine the Natural Gas Transmission & Distribution Industry in the just-published edition of The Wall Street Transcript, a vital review for investors and companies.
1) An in-depth roundtable forum featuring two leading analysts: Donald J. Eassey of Merrill Lynch and Curt Launer of Donaldson, Lufkin & Jenrette. Canadian supply sources, unregulated businesses, growth platforms, diversification, management performance, and regulatory changes. Regarding federal regulation, Launer states, "From the Federal Energy Regulatory Commission (FERC) point of view, I would suggest that regulation has improved over the last year or so. I'm specifically referring to the summer of 1998, when the Federal Energy Regulatory Commission came out with new rules which, briefly put, allow the pipelines to achieve higher returns on equity, keep more of the cost savings they generate for benefit of their shareholders rather than just their customers, and also allow the pipelines better management of capital structures, moving away from what used to be called imputed capital structure type rule-making." But on a state level, Eassey asserts, "Unfortunately, because we have 48 distinct jurisdictions here, you've got 48 different ideas, essentially."
On the supply/demand issue, Launer declares, "On the demand side, we're looking for growth in natural gas demand, assuming normal weather, of 2 1/2-3% per year for the next several years. We're looking for supply to rise to the 1 1/2-2% range."
Other topics addressed by this distinguished panel: standard cost recovery, storage levels, rig rates, gas consumption on the electric side, M&A activity, investor concerns, and the future outlook for the sector.
The panel offers several investment recommendations, including: Enron (NYSE:ENE), El Paso Energy (NYSE:EPG), and Coastal Corp. (NYSE:CGP), about which Eassey states, "I like Coastal Corp., I like the fundamental valuation. Our targets there are $44 on 1999 and $52 on 2000."
2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or criticize 18 Natural Gas Transmission & Distribution companies and managements, includes several recommendations and a few admonishments. Accolades for top management at Enron (NYSE:ENE), headed up by Kenneth L. Lay, Chairman and CEO and Jeffrey Skilling, President and COO, maintains a buysider. "Enron is probably the most innovative management out there. There's no doubt that Kenneth Lay, CEO and his people have a vision for the future. Rather than letting the future shape them, they've shaped the future. The company has done things, as far as level of sophistication in the gas industry that nobody thought was possible."
Applause from a buysider for Keith Bailey, CEO of Williams Companies (NYSE:WMB), "Keith Bailey the CEO does a terrific job of maximizing the company's assets and really running a top notch physical operation."
But an industry veteran presents the "Mr. Potato Head Award of the Year" to another CEO "for making a most unfortunate acquisition."
3) Analyst Interview -Natural Gas Transmission & Distribution -Ronald Barone -PaineWebber. Size does matter according to Barone, who states, "In New England there are many, small gas distribution companies. As the industry moves towards convergence, "one-stop" shopping, increased competition, and unbundling, the numbers of LDCs in New England will shrink. Size will be important."
4) Analyst Interview -Natural Gas Distribution -Daniel Fidell. Fidell anticipates continued M&A activity in the sector, "Piedmont Natural Gas (NYSE:PNY) is, in our opinion, one of the more primary takeout candidates. PNY is a fast-growing gas utility in North Carolina with a strong balance sheet, modest unregulated investments and a CEO who recently announced his retirement."
Other companies mentioned in this special 30-page Natural Gas Distribution & Transmission section include:
AGL Resources (NYSE:ATG), Carolina Power & Light (NYSE:CPL), Columbia Energy (NYSE:CG), Consolidated Natural Gas (NYSE:CNG), CTG Resources (NYSE:CTG), Dominion Resources (NYSE:D), Duke Energy (NYSE:DUK), Dynegy (NYSE:DYN), Eastern Enterprtises (NYSE:EFU), Enbridge (Toronto:ENB.T), Energen (NYSE:EGN), Equitable Resources (NYSE:EQT), KN Energy (NYSE:KNE), MCN Energy (NYSE:MCN), N.C. Natural Gas (NYSE:NFG), NIPSCO Industries (NYSE:NI), Piedmont Natural Gas (NYSE:PNY), Public Service of N.C. (NYSE:PGS), Questar (NYSE:STR), Reliant Energy (NYSE:REI), Repsol S.A. (NYSE:REP), Sonat (NYSE:SNT), Texas Utiltiies (NYSE:TXU), TransCanada Pipeline (NYSE:TRP), UGI (NYSE:UGI), Utili Corp. (NYSE:UCU), Wash Gas Light (NYSE:WGL) and Yankee Energy System (NYSE:YES).
For a copy of this complete issue,
which also contains interviews on other topics with analysts, money managers
and CEOs, call (212) 952 7433 or use the web at http://secure.addy.com/archive/twst_order.html.
There is a $175 charge for the issue. The Wall Street Transcript does not
endorse the views of any interviewee nor does it make stock recommendations.
Special DLJ Energy Conference Edition of The Wall Street Transcript
The Wall Street Transcript has just made available a special 56-page edition produced for the March 3-5, 1999 Donaldson, Lufkin & Jenrette Energy Conference. Featuring interviews with seven leading research analysts and CEOs or top management from 11 Energy firms, this special issue offers an excellent current review of the sector for analysts, investors, and companies. Highlights include: 1) Interviews with seven prominent analysts from Donaldson, Lufkin & Jenrette; Outlook for Energy - John Hervey, Richard Manley & Phokian Potamianos. Potamianos states, "Definitely investors should be selective. You have to focus on where the returns are best, and we believe that a company like Phillips (NYSE:P) presents some of the best fundamentals because of its ability to control costs, while a company like USX-Marathon (NYSE:MRO) has probably one of the most attractive valuations and will correct most significantly with the adjustment on the crude price." Outlook for Exploration & Production Stocks - David Bradshaw. Bradshaw declares, "We are excited about the prospects for Burlington Resources (NYSE:BR) going forward. From 1988 through 1993, after being hatched from the railroad, Burlington restructured its assets to focus purely on exploration and production. As a result, Burlington currently enjoys one of the greatest capital investment efficiencies among the large capitalization names with above-average sensitivity to rebounding natural gas prices." Natural Gas Distributors & Pipelines - Curt Launer. Launer asserts, "Demand is growing 2.5-3% per year, and even though the weather is warm, supply is not keeping pace with that demand. That argues for why natural gas prices have held up so well in the face of low oil prices and why natural gas prices look good in the near and longer-term future." Outlook for Emerging Markets - Jay Bhutani. Bhutani states, "Our average forecast for this year is $15 per barrel (WTI), but we expect the exit price to be around $18 and the average next year I believe is $18.50. So we are looking for a turnaround and it's really not a demand recovery story as much as a supply-restraint recovery story. Non-OPEC supply is coming under a lot of pressure from falling investment and that should start to bring the demand and supply line closer together." Oil Services & Equipment - Arvind Sanger. Sanger states, "There are a lot of compelling values from a long-term standpoint. The question is one of the time value of money and how long you have to wait before you make money in this group. And I believe that when the move does happen, it's not going to be a small move; it's going to be a 40, 50% move once the fundamentals of commodity prices improve." 3) CEOs or top executives from the following companies are interviewed in this special 56-page edition produced for the March 3-5, 1999 Donaldson, Lufkin & Jenrette Energy Conference: Chesapeake Energy (NYSE:CHK), Magnum Hunter Resources (AMEX:MHR), Tosco (NYSE:TOS), Houston Exploration (NYSE:THX), Nabors Industries (AMEX:NBR), Newfield Exploration (NYSE:NFX), Nuevo Energy (NYSE:NEV), Pacalta Resources (Toronto(PAZ), Seven Seas Petroleum (AMEX:SEV), Triton Energy (NYSE:OIL), and Unocal (NYSE:UCL). These are in-depth discussions with the people leading these firms, talking about their companies; the key trends they see in their markets; the opportunities they face and their key concerns; specific goals they are setting for their organization; and the outlook for investors. For a copy of this complete issue, which also contains interviews on other topics with analysts, money managers and CEOs, call (212) 952 7400 or use the web at http://secure.addy.com/archive/twst_order.html. There is a $175 charge for the issue. The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations. The Wall Street Transcript is a premier weekly investment publication serving long-term investors for over 35 years. The Transcript publishes industry roundtables and interviews with Wall Street analysts, money managers and company CEOs, and is read by top money managers, brokers and individual investors. For subscriptions information call (800) 246 7673. |
Investing Money Manager looks for Dow 20,000 - Henry B. Dunlap Smith, Harris Bretall McEldowney, Sullivan & Smith (3/16) Money Manager selects company that is "three to five years ahead in its market" - Stephen R. Adams, Van Kasper Advisors. (3-16) Money Manager sees rates remaining steady - James Pizzo CIBC Oppenheimer. (3/10) Money Manager prefers service providers for Internet investing - Donald C. McMillion McMillion Capital Management. (3-4) Money Manager shares "Value Buys" - E.O. "Bobby" Edgerton, Capital Investment Companies (2/9) Money Manager favors micro-cap stock - L.O. Heidtke, Heidtke & Company (1/27) Money Manager sees opportunities in "tax sale" issues - Fred Astman, First Wilshire Securities (1/26) Money Manager sees large caps as "very overvalued"- Richard W. Perkins, Perkins Capital Management, Inc. (1/7) Money Manager sees investment climate changing - Ronald H. Muhlenkamp, Muhlenkamp & Company, Inc (1/5) Double Benefit of Convertible Bonds - F. Barry Nelson, Advent Capital Management (12/16)
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Wall Street Transcript is a premier weekly investment publication serving
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