Net income fell to $978 million, or $1.28 per share, from $1.39 billion, or $1.84, in the year-ago period, when the company posted a special tax
gain. Analysts expected earnings of $1.19 a share in the most recent fourth quarter. Revenue for the quarter rose 14% to $22.3 billion.

The company also said its 2013 forecast “assumes no significant financial impact” from the grounding of its 787 Dreamliner jet by regulators. Aviation safety agencies in the United States and Japan are investigating what caused lithium-ion batteries to burn on two 787 passenger jets earlier this month, prompting regulators to ground the planes worldwide.

Boeing said it is continuing to build the Dreamliner, but has halted deliveries, and analysts have raised concerns about the cost of the grounding and for fixing the battery problem on about 125 jets that Boeing has built so far .

Boeing sees no big impact from 787 woes, profit beats (Reuters) (newsdaily.com)

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by jackbassteam on February 1, 2013 • Permalink

Posted in Infrastructure

Tagged All Nippon Airways, Bachelor of Arts, Boeing, Boeing 787 Dreamliner, Japan, Lithium-ion battery, New York Stock Exchange, United States

Posted by jackbassteam on February 1, 2013

http://amp2012.com/2013/02/01/boeing/

Headwaters

Building construction (Photo credit: Toban B.)

HW : NYSE : US$9.34
BUY 
Target: US$12.00

COMPANY DESCRIPTION:
Headwaters Incorporated is a provider of innovative construction materials for use in the light building products and heavy construction industries.

Investment recommendation

We maintain our BUY rating as we expect improving construction market trends to help support P&L momentum. With contribution margins of 40%+, we find HW very well positioned to outperform in a housing/construction market recovery.
Investment highlights
 New residential construction continues to drive improvement in light building products (full impact expected later in ’13 given lagging impact and seasonality), while flyash volumes were softer than expected on weather, outages and lower electricity demand (offset by price).
 Guidance gets tweaked up slightly to incorporate Kleer Lumber and improving end-markets (~$110-125M from $100-115M), while not yet factoring a pick up in repair/remodel activity. We do note difficult comps in Q2 given unusually mild conditions in 2012.
 Our conservative estimates adjust as follows: F2013 rev/EBITDA/ EPS to $702.6M/$111.3M/$0.19 from $688.0M/$105.6M/$0.09; F2014 to $748.0M/$124.3M/$0.27 from $734.0M/$124.5M/$0.27.
Valuation
We apply a multiple of 9.6x EV/FY2014 EBITDA (F2014E EBITDA of $124.5M) to reach our $12.00 target.
Risks
Volatility in residential construction markets, uncertain flyash regulations/demand and a highly leveraged balance sheet.

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by jackbassteam on January 31, 2013 • Permalink

Posted in Housing, Industrials, Infrastructure

Tagged Business, Construction, Construction and Maintenance, Earnings before interest taxes depreciation and amortization, Extended hours trading, Headwaters Incorporated, New York Stock Exchange, NYSE

Posted by jackbassteam on January 31, 2013

http://amp2012.com/2013/01/31/headwaters/

All You Need To Succeed – in 2013 – 500 pages of Investing Strategy and Selections

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by jackbassteam on January 26, 2013 • Permalink

Tagged Business, Equities, investing, Investment, Jack Bass, Research and Analysis, stock market, Stocks and Bonds

Posted by jackbassteam on January 26, 2013

http://amp2012.com/2013/01/26/all-you-need-to-succeed-in-2013-500-pages-of-investing-strategy-and-selections/

Caterpillar – China Accounting Does Not Add Up

English: Caterpillar D10N bulldozer, in Israel Français : Un bulldozer D10N de la marque Caterpillar. Photo prise en Israël. עברית: דחפור די-10 תוצרת קטרפילר. צולם בישראל (Photo credit: Wikipedia)

Caterpillar

(CAT : NYSE : US$97.72)
Caterpillar uncovered “deliberate, multi-year, coordinated accounting misconduct” at a subsidiary of a Chinese company it acquired last summer, leading it to write off most of the value of the deal and wiping out more than half its expected earnings for the fourth quarter of 2012.

Caterpillar, the world’s largest maker of tractors and excavators, said on Friday it would take a non-cash goodwill impairment charge of $580 million, or $0.87 per share, in the quarter. “It came as a complete surprise to us,” the former board member said of the fraud, speaking on condition of anonymity because of the sensitivity of the situation. “It was presented to us as a pretty straightforward transaction. It’s a shame. It should have been investigated further.”
The source said the driving force behind the deal was Ed Rapp, the former Caterpillar chief financial officer who now serves as a group president with responsibility for China, among other operations. The source said it was Rapp who presented the deal to the board and pushed for its completion. A Caterpillar spokesman declined to comment on Rapp’s role in the deal. Rapp could not be immediately located for comment.

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by jackbassteam on January 24, 2013 • Permalink

Posted in Infrastructure

Tagged $580 million, Caterpillar, China, Chinese language, Mining, New York Stock Exchange, Rapp, Write-off

Posted by jackbassteam on January 24, 2013

http://amp2012.com/2013/01/24/caterpillar-china-accounting-does-not-add-up/

A Ford In The House ?

1939 Ford pick-up truck (Photo credit: Wikipedia)

Ford Motor (F : NYSE : US$13.99)
SPDR Homebuilders ETF (XHB : NYSE : US$27.66)

The Globe & Mail published an article over the weekend highlighting Ford shares as a way to play the housing recovery. The article noted that the auto maker has ties to the housing market due to its heavy reliance on pick ups, and that a recovery in the U.S. be driving demand for trucks higher.

Truck sales increased to 645,300 in 2012, the third consecutive year of gains. Even with the steady gains, sales of pickup trucks still sit at 1994 levels and are well below levels seen during the U.S. housing boom, which could leave the door open for further growth. The Globe noted that while homebuilders still have a long way to go before hitting 2005 highs, Ford ay be able to have a stronger run for the following reasons:

1) Ford doesn’t have its history tainted by a bubble;

2) Ford’s P/E ratio is less than 11 versus an average of 36 for homebuilders; and

3) Ford recently doubled its dividend while homebuilders typically distribute little to nothing.