J. C. Penney Company Inc. (NYSE: JCP) remains challenged. A new release from the company signals one of two outcomes. First is that it could be taken over against its will. The second is that the company thinks it can become profitable again in the near future. Or there is a third and most likely option. Effectively, this change makes a poison pill kick in at a much lower threshold and it puts unwanted�acquirers and activist investors in a very weak position.
J.C. Penney’s board of directors has amended the shareholder rights plan, in what it says is to protect its valuable net operating loss carryforwards (noted as NOLs). When companies amend their shareholder rights plans, usually defensive against takeovers, they can make the company harder to acquire. Unfortunately, this can also create other triggers, even if outside shareholders take too large of a stake. Again, investors need to understand that this lowers the poison pill threshold.
The company claims to have more than $2 billion in NOLs. These can be used to offset future taxable income and reduce federal income tax liability under certain circumstances. Unfortunately, the ability to use these losses dries up if ownership changes. The company even said:
Top 10 Long Term Companies To Invest In 2015: American Campus Communities Inc (ACC)
American Campus Communities, Inc., incorporated on March 9, 2004, is a self-managed and self-administered real estate investment trust (REIT). The Company specializes in the acquisition, design, financing, development, construction management, leasing and management of student housing properties. Through the Company�� interest in American Campus Communities Operating Partnership LP (the Operating Partnership), the Company owns, manages and develops student housing properties in the United States. It operates in four segments: Wholly-Owned Properties, On-Campus Participating Properties, Development Services and Property Management Services. As of December 31, 2011, the Company�� property portfolio contained 116 properties with approximately 71,800 beds in approximately 22,900 apartment units. Of the 116 properties, 11 were under development as of December 31, 2011. In July 2012, the Company acquired University Commons, a 480-bed off-campus community serving students attending the University of Minnesota. In September 2012, it acquired Campus Acquisitions��15 student housing properties with 6,579 beds. On November 30, 2012, the Company acquired student housing properties with 12,049 beds, including 366 beds at an additional phase from affiliates of Kayne Anderson Capital Advisors, L.P.
In December 2011, the Company acquired a 79.5% interest in a partnership that owns a 258-unit, 901-bed property (The Varsity) located near the campus of the University of Maryland in College Park, and a 367-unit, 1,026-bed wholly owned property (26 West) located near the campus of The University of Texas in Austin. In November 2011, the Company acquired a 370-unit, 684-bed wholly owned property (Studio Green) located near the campus of Florida State University in Tallahassee. In September 2011, the Company acquired a 216-unit, 792-bed wholly owned property (Eagles Trail) located near the campus of the University of Southern Mississippi in Hattiesburg. In July 2011, the Company acquired a retail shopping! center located near the campus of the University of Central Florida in Orlando. In April and May 2011, the Company sold four owned off-campus properties (Campus Club - Statesboro, River Club Apartments, River Walk Townhomes and Villas on Apache).
Through the Company�� taxable REIT subsidiaries (TRS), it also provides construction management and development services, primarily for student housing properties owned by colleges and universities, charitable foundations, and others. As of December 31, 2011, the Company provided third-party management and leasing services for 31 properties (nine of which the Company served as the third-party developer and construction manager) that represented approximately 24,200 beds in approximately 9,600 units, and one joint venture property in which the Company owns a noncontrolling interest with approximately 600 beds in approximately 200 units. As of December 31, 2011, the Company�� total owned, joint venture and third-party managed portfolio included 148 properties with approximately 96,600 beds in approximately 32,700 units.
The Company�� wholly-owned properties segment include American Campus Equity (ACE). Its On-Campus Participating Properties segment includes four on-campus properties owned by one of its TRSs that are operated under long-term ground/facility leases with two university systems. The Company�� third-party services consist of development services and management services and are typically provided to university and college clients. Many of its third-party management services are provided to clients for whom it also provides development services. The Company�� Development Services segment consists of development and construction management services that it provides through one of its TRSs for third-party owners. These services range from short-term consulting projects to long-term development and construction projects.
The Company�� pre-development services typically include feasibility studies for thir! d-party o! wners and design services. Feasibility studies include an initial feasibility analysis, review of conceptual design, and assistance with master planning. Construction management services consist of hiring of project professionals and a general contractor, coordinating and supervising the construction, equipping and furnishing process on behalf of the project owner, including site visits, hiring of a general contractor and project professionals, and coordination and administration of all activities necessary for project completion. The Company�� Property Management Services segment, conducted by its TRSs, includes revenues generated from third-party management contracts in which it is responsible for marketing, leasing administration, facilities maintenance, business administration, accounts payable, accounts receivable, financial reporting, capital projects and residence life student development.
Advisors' Opinion:- [By GURUFOCUS]
American Campus Communities, Inc. (ACC), an owner, manager, and developer of student housing, decreased 15.2% in the third quarter as the company's lease rates were weaker than expected. Supply in some of its markets increased, and REITS were hurt in the third quarter from rising yields as the 10-year Treasury yield approached 3% and made dividend yields on many REITs less attractive. However, we continue to believe the company is the best in its industry at developing properties and should improve its yields next year as the market absorbs the excess supply. (David Baron)
Best Defensive Companies To Watch In Right Now: Willis Group Holdings Limited(WSH)
Willis Group Holdings Public Limited Company provides a range of insurance brokerage, reinsurance, and risk management consulting services to its clients worldwide. The company offers various insurance brokerage services, including property damage, offshore construction, liability, and control of well and pollution insurance to the energy industry; and marine insurance and reinsurance brokerage services consisting of hull, cargo, and general marine liabilities. It also provides its services to aerospace clients, including aircraft manufacturers, air cargo handlers and shippers, airport managers, and other general aviation companies; and advisory services comprising claims recovery, contract and leasing risk management, market information, and safety services. In addition, the company offers risk management advice and brokerage services to the construction industry; brokerage for directors' and officers' insurance, as well as professional indemnity insurance for corporation s and professional firms; and specialist risk management and insurance services to fine art, diamond, and jewelry businesses, and operators of armored cars. Further, it provides special contingencies packages; services for horse racing and breeding industry, and agriculture/crop sector; and advice to companies involved in the insurance and reinsurance industry on capital markets products. Additionally, the company offers health, welfare, and human resources consulting and brokerage services to small, medium, and large corporations, as well as the employee benefits practice. It serves clients located in approximately 190 countries, including multinational and middle-market companies operating in various industries, as well as public institutions and individual clients. The company was formerly known as Willis Group Holdings Limited and changed its name to Willis Group Holdings Public Limited Company in January 2010. The company was founded in 1828 and is headquartered in Lond on, the United Kingdom.
Advisors' Opinion:- [By Vera Yuan]
We bought relatively small new positions in Willis Group Holdings and Avon Products in the third quarter. Willis (WSH) is a leading global insurance broker. We have followed this attractive industry for many years through investments in Aon, Brown & Brown and others (including Willis under prior management). Organic revenue growth has been solid, and Willis has a near-term opportunity to expand margins through expense initiatives and restructuring savings that are likely to kick in next year. We think the stock should be revalued higher once management follows through on its pledged cost discipline and drives operating leverage. Avon (AVP) is a direct selling, branded beauty business undergoing a turnaround in the U.S. market. The overwhelming majority of Avon�� business value comes from its stronger positions in Latin America and other emerging markets. Our investment thesis is that well-run direct selling can be a decent business with solid margins and high returns, that the Avon brand is not fundamentally broken, and that the U.S. business is bottoming as evidenced by break-even results in the most recent quarter. Avon has a wider range of potential outcomes than our typical investment and is sized accordingly.
Best Defensive Companies To Watch In Right Now: PrimeEnergy Corporation(PNRG)
PrimeEnergy Corporation, through its subsidiaries, engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States. Its principal properties are located in Texas, Oklahoma, West Virginia, the Gulf of Mexico, New Mexico, Colorado, and Louisiana. The company operates 1,600 oil and gas wells, as well as owns non-operating interests in approximately 800 additional wells. It also provides well-servicing support operations, site-preparation, and construction services for oil and gas drilling and reworking operations, as well as contract services for third parties. In addition, the company involves in the acquisition of producing oil and gas properties through joint ventures with industry partners. As of December 31, 2010, it had proved reserves of 101 billion cubic feet of gas equivalent. The company was founded in 1973 and is based in Stamford, Connecticut.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Energy shares declined by just 0.08 percent in Monday's trading. However, top gainers in the sector included PrimeEnergy (NASDAQ: PNRG) and Dresser-Rand Group (NYSE: DRC). In trading on Monday, financial shares were relative laggards, down on the day by about 1.07 percent.
Best Defensive Companies To Watch In Right Now: Odyssey Marine Exploration Inc.(OMEX)
Odyssey Marine Exploration, Inc. provides shipwreck exploration services for use in insurance investigations, and search and recovery operations to governments and deep-ocean mineral exploration companies. The company?s shipwreck projects consist of various activities, including research and development, and search operations; archaeological excavation and recovery operations; and conservation, recording, and documentation. It also sells shipwreck findings, including coins and other mass-produced cargo, cultural collections, and replicas to collectors, museums, and other institutions. Odyssey Marine Exploration, Inc. was founded in 1986 and is headquartered in Tampa, Florida.
Advisors' Opinion:- [By Sean Williams]
Odyssey Marine Exploration (NASDAQ: OMEX )
I love a good metals play as much as any Fool around here, but Odyssey Marine is certainly not on the buy list. Odyssey Marine is a salvage company that searches for, recovers, and monetizes metals and minerals found on the ocean floor. Make no mistake about it, the job is as cool as it sounds; unfortunately, "cool" doesn't always translate into solid profits. - [By Rich Duprey]
Despite silver falling to around $23 an ounce, and gold going below $1,400, now might be the time to invest in Odyssey Marine Exploration (NASDAQ: OMEX ) , the treasure-hunting shipwreck finder whose own stock is down by a third from its 52-week high.
- [By Jonathan Yates]
That is certainly a better way to profit from gold, SPFR Gold Shares (NYSE: GLD), and silver, iShares Silver Trust (NYSE: SLV). Both the GLD and the SLV have plunged, but sea treasure recovery is very profitable. The find today demonstrates that fact of investing! Odyssey Marine Exploration (NASDAQ: OMEX) had a huge haul off the coast of Ireland earlier this summer, which is more proof of the profit potential for this industry!!.
Best Defensive Companies To Watch In Right Now: LTC Properties Inc (LTC)
LTC Properties, Inc., incorporated on May 12, 1992, a health care real estate investment trust (REIT). The Company invests primarily in senior housing and long term care properties through property lease transactions, mortgage loans and other investments. Its primary senior housing and long term healthcare property types include skilled nursing properties (SNF), assisted living properties (ALF), independent living properties (ILF) and combinations thereof. During 2011, it leased a private school property to a non-for-profit corporation providing therapeutic support and intensive home, school and center-based behavioral therapy for children, youth and families affected by Autism Spectrum Disorders. The Company, during 2011, acquired a 196-bed skilled nursing property. It purchased a 140-bed skilled nursing property located in Texas during 2011. During December 31, 2011, it acquired a vacant parcel of land in Texas. The Company, on March 26, 2012, acquired a skilled nursing property with 144 licensed beds. In May 2012, the Company acquired a 3.16 acre vacant parcel of land in Colorado. In July 2012, the Company acquired a skilled nursing property with 90 licensed beds. In August 2012, it acquired two skilled nursing facilities with a total of 288 licensed beds. In January 2013, the Company purchased two parcels of land.
As of 2011, it has investments in 12 states that include mortgages to 14 different operators. Skilled nursing facilities provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at acute care hospitals. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services which are paid either by the patient, the patient's family, private health insurance, or through the federal Medicare or state Medicaid programs.
Assisted living facilities serve elderly persons who require assistance w! ith activities of daily living, but do not require the constant supervision skilled nursing facilities provide. Services are usually available 24 hours a day and include personal supervision and assistance with eating, bathing, grooming and administering medication. The facilities provide a combination of housing, supportive services, personalized assistance and health care designed to respond to individual needs.
Independent living facilities, also known as retirement communities or senior apartments, offer a sense of community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, on-site security and emergency response programs. Many offer on-site conveniences like beauty/barber shops, fitness facilities, game rooms, libraries and activity centers.
One of the properties in the Company�� real estate investment portfolio is a charter school. Charter schools provide an alternative to the traditional public school. Charter schools are autonomous entities authorized by the state or locality to conduct operations independent from the surrounding public school district. Laws vary by state, but generally charters are granted by state boards of education either directly or in conjunction with local school districts or public universities. Operators are granted charters to establish and operate schools based on the goals and objectives set forth in the charter. Upon receipt of a charter, schools receive an annuity from the state for each student enrolled. The other school in the Company�� investment portfolio is a private school and is closed and classified as held-for-sale.
As of 2011, the Company had investments in 25 states leased to 30 different operators. The Company�� owned properties are leased pursuant to non-cancelable operating leases generally with an initial term of 10 to 15 years. Many of the leases contain renewal options and! one cont! ains limited period options that permit the operator to purchase the property. The leases provide for fixed minimum base rent during the initial and renewal periods. The majority of the Company�� leases contain provisions for specified annual increases over the rents.
Advisors' Opinion:- [By Marc Bastow]
Healthcare real estate investment trust LTC Properties (LTC) announced a 9.7% increase to its monthly dividend, to 17 cents per share, payable Oct. 31, Nov. 29 and Dec. 31 to shareholders of record as of Oct. 23, Nov. 21, and Dec. 23, respectively.
LTC Dividend Yield: 5.46%
Best Defensive Companies To Watch In Right Now: New Jersey Resources Corp (NJR)
New Jersey Resources Corporation (NJR), incorporated in 1981, is an energy services holding company providing retail and wholesale energy services to customers in states from the Gulf Coast and Mid-Continent regions to the Appalachian and Northeast regions, the West Coast and Canada. NJR's subsidiaries and businesses include New Jersey Natural Gas (NJNG), NJR Clean Energy Ventures (NJRCEV), NJR Energy Services (NJRES) and NJR Energy Holdings Corporation (NJREH). NJNG is a local natural gas distribution company, which provides regulated retail natural gas service to approximately 500,100 residential and commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets. NJR Clean Energy Ventures (NJRCEV) comprises the Company's Clean Energy Ventures segment and reports the results of operations and assets related to the Company's capital investments in renewable energy projects, including commercial and residential solar projects, as well as on-shore wind projects through a 19.9% interest in OwnEnergy. NJRES maintains and transacts around a portfolio of physical assets consisting of natural gas storage and transportation contracts. NJRES also provides wholesale energy management services to other energy companies and natural gas producers. NJRES comprises the Company's Energy Services segment. NJREH invests in energy-related ventures through its subsidiaries, NJNR Pipeline Company (Pipeline), which holds the Company's 5.53% ownership interest in Iroquois Gas Transmission L.P. (Iroquois) and NJR Steckman Ridge Storage Company, which holds the Company's 50% combined interest in Steckman Ridge GP, LLC and Steckman Ridge, LP (collectively, Steckman Ridge), a natural gas storage facility. Iroquois and Steckman Ridge comprise the Company's Energy Holdings segment.
NJR has retail and other operations (Retail and Other). NJR Retail Holdings (Retail Holdings) is consolidates the Company's unregulated retail operations. Retail Holdings consi! sts of wholly owned subsidiaries, including NJR Home Services (NJRHS), a company which provides heating, ventilation and cooling (HVAC) service repair and contract services to approximately 134,900 customers, as well as solar installation projects; Commercial Realty & Resources (CR&R), a company that holds and develops commercial real estate holds and develops commercial real estate, and NJR Plumbing Services (NJRPS), a company that provides plumbing repair and installation services.
NJR Energy Investments (NJREI) is an unregulated affiliate, which consolidates the Company's unregulated energy-related investments. NJREI includes the wholly owned subsidiaries, including NJR Investment, a company which makes and holds energy-related investments, through equity instruments of public companies. NJR Energy Corporation (NJR Energy), a company that invests in energy-related ventures. NJR Service an unregulated company, which provides shared administrative services, including corporate communications, financial and planning, internal audit, legal, human resources and information technology for NJR and all subsidiaries.
The Company operates within four reportable business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Energy Holdings. The Natural Gas Distribution segment consists of regulated energy and off-system, capacity and storage management operations. The Clean Energy Ventures segment consists of capital investments in renewable energy projects. The Energy Services segment consists of unregulated wholesale energy operations. The Energy Holdings segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities.
Natural Gas Distribution
NJNG provides natural gas service to approximately 500,100 customers. NJNG's service territory is in New Jersey's Monmouth and Ocean counties and parts of Burlington, Morris, Middlesex and Sussex counties. It encompasses 1,516 sq! uare mile! s, covering 105 municipalities with an population of 1.4 million people. During the fiscal year ended September 30, 2012 (fiscal 2012), NJNG added 6,704 new customers and added natural gas heat and other services to another 539 existing customers. During fiscal 2012, NJNG's gas supply portfolio consists of long-term (over seven months), winter-term (November through March) and short-term (seven months or less) contracts. During fiscal 2012 , NJNG purchased gas from approximately one hundred suppliers under contracts ranging from one day to one year and purchased over 10% of its natural gas from two suppliers. NJNG maintains agreements for firm transportation and storage capacity with several interstate pipeline companies. NJNG receives natural gas at eight citygate stations located in Middlesex, Morris and Passaic counties in New Jersey.
The pipeline companies, which provide firm contract transportation service for NJNG and supply the above pipelines are ANR Pipeline Company (ANR), Iroquois Gas Transmission L.P., Tennessee Gas Pipeline Company, Dominion Transmission Corporation (Dominion) and Columbia Gulf Transmission Company. In addition, NJNG has storage and related transportation contracts, which provide additional maximum daily deliverability to NJNG's citygate stations of 102,941 decatherm from storage fields in its Northeast market area.
Clean Energy Ventures
NJRCEV is an unregulated company, which invests, owns and operates renewable energy projects located in the State of New Jersey and owns an interest in an on-shore wind project developer. NJRCEV invests in, owns and operates residential and commercial solar installations in the State of New Jersey. As of September 30, 2012 , NJRCEV has placed a total of 35.9 megawatts of solar assets into service, including a combination of residential and commercial rooftop and ground mount solar systems.
Energy Services
NJRES provides unregulated wholesale energy services and engages in! the busi! ness of optimizing natural gas storage and transportation assets. The rights to these assets are acquired in anticipation of delivering natural gas or performing asset management activities for the Company's customers or in conjunction with identifying arbitrage opportunities that exist in the marketplace. These activities are conducted in the market areas, which include states from the Gulf Coast and Mid-Continent regions to the Appalachian and Northeast regions, the West Coast and Canada.
NJRES has developed a portfolio of natural gas storage and transportation capacity in the Gulf Coast, Mid-Continent, Appalachian and Northeast regions, the West Coast and Canada. NJRES also participates in park-and-loan transactions with pipeline and storage counterparties, where NJRES will park (store) natural gas to be redelivered to NJRES at a later date or borrow to be returned to the pipeline or storage field at a later date. NJRES has built a portfolio of customers, including local distribution companies, industrial companies, electric generators, retail aggregators, natural gas producers and other wholesale marketing companies.
Energy Holdings
Energy Holdings include investments in natural gas transportation and storage assets and is consisted of NJNR Pipeline, which consists of its 5.53% equity investment in Iroquois Gas Transmission System, which is a 412 -mile natural gas pipeline from the New York-Canadian border to Long Island, New York, and NJR Steckman Ridge Storage Company, which holds the Company's 50% equity investment in Steckman Ridge. Steckman Ridge is a partnership, jointly owned and controlled by subsidiaries of the Company and subsidiaries of Spectra Energy Corporation, which built, owns and operates a 17.7 billion cubic feet natural gas storage facility in western Pennsylvania.
Other Business Operations
Retail and Other operations consist of the unregulated affiliates, including NJRHS, which provides HVAC service, sales and ! installat! ion of appliances to approximately 134,900 customers, as well as installation of solar equipment, and CR&R, which holds and develops commercial real estate. As of September 30, 2012 , CR&R's real estate portfolio consisted of 27 acres of undeveloped land in Monmouth County, 52 acres of undeveloped land in Atlantic County, and a 56,400 -square-foot office building on five acres of land in Monmouth County. NJR Investment invests in and holds certain energy-related investments, through equity instruments of public companies. NJR Energy invests in energy-related ventures. NJR Service provides shared administrative and financial services to the Company and all its subsidiaries.
Advisors' Opinion:- [By Charles Carlson]
If you are new to DRIP investing, treat yourself to a few DRIPs this holiday season. Trust me��t'll change your life.
American Water Works (AWK)��ielding 2.7% with a DRIP minimum of $100
Cincinnati Financial (CINF)��ielding 3.2% with a DRIP minimum of $25
CVS Caremark (CVS)��ielding 1.4% with a DRIP minimum of $100
Dominion Resources (D)��ielding 3.4% with a DRIP minimum of $40
Domino's Pizza (DPZ)��ielding 1.2% with a DRIP minimum of $65
Eaton (ETN)��ielding 2.3% with a DRIP minimum of $100
Flowserve (FLS)��ielding 0.8% with a DRIP minimum of $100
Kellogg (K)��ielding 3.0% with a DRIP minimum of $50
New Jersey Resources (NJR)��ielding 3.7% with a DRIP minimum of $100
Quest Diagnostics (DGX)��ielding 2.0% with a DRIP minimum of $100
Tim Hortons (THI)��ielding 1.7% with a DRIP minimum of $25
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