So long and thanks for all the dishes. J.C. Penney (JCP) has been bumped from the S&P 500 and into the S&P MidCap 400, as part of a string of moves.
Getty ImagesFrom S&P’s press release:
Allegion plc (ALLE) will replace J. C. Penney Company Inc. in the S&P 500, J. C. Penney will replace A茅ropostale Inc. (ARO) in the S&P MidCap 400, and A茅ropostale will replace Corinthian Colleges Inc. (COCO) in the S&P SmallCap 600 after the close of trading on Friday, November 29.
S&P 500 constituent Ingersoll-Rand plc (IR) is spinning off Allegion to shareholders in a transaction expected to be effective after the close of trading on that date. Ingersoll-Rand will remain in the S&P 500 after the spin-off. J. C. Penney�� and A茅ropostale�� market capitalizations are now more representative of the mid cap market and small cap market spaces respectively. Corinthian Colleges��low stock price and market capitalization make it no longer suitable for the S&P SmallCap 600.
Top 10 Mid Cap Companies To Watch In Right Now: Orexigen Therapeutics Inc.(OREX)
Orexigen Therapeutics, Inc., a development stage company, focuses on the development of pharmaceutical product candidates for the treatment of obesity. Its lead combination product candidates include Contrave, which has completed phase III clinical trials; and Empatic that has completed phase II clinical trials. Contrave is a combination of two drugs, bupropion and naltrexone, in a sustained release formulation (SR). Bupropion is an antidepressant and smoking cessation medication; and naltrexone is a treatment for alcohol and opioid addiction. The company?s Empatic product candidate is a combination of bupropion SR and zonisamide SR. Zonisamide is for the adjunctive treatment of partial seizures, a form of epilepsy. The company has a collaboration agreement with Takeda Pharmaceutical Company Limited to develop and commercialize Contrave. Orexigen Therapeutics, Inc. was founded in 2002 and is based in La Jolla, California.
Advisors' Opinion:- [By John Udovich]
Small cap biotech Arena Pharmaceuticals, Inc (NASDAQ: ARNA) soared yesterday and last Friday on earnings as well as news that the company will expand its marketing and supply agreement with Japan based Eisai for its BELVIQ (lorcaserin HCl) obesity drug, meaning it might be time to take a closer look at other biotech stocks like Orexigen Therapeutics, Inc (NASDAQ: OREX), EnteroMedics Inc (NASDAQ: ETRM) and VIVUS, Inc (NASDAQ: VVUS) that are in the business of treating obesity. Specifically, Arena Pharmaceuticals announced an expanded agreement providing Eisai with exclusive commercialization rights for all countries worldwide (except for South Korea, Taiwan, Australia, Israel and New Zealand) for BELVIQ where Arena will receive an upfront payment of $60 million and is eligible to receive up to a total of $176.5 million in regulatory and development milestone payments - an increase of $123 million from the amount remaining available under the previous agreement. BELVIQ was approved in June 2012, but didn't reach the market until June 2013 due to logistical concerns like classification by the Drug Enforcement Administration. Its also�approved for use in adults who are obese or who are overweight and who have at least one serious medical condition (e.g. diabetes or high cholesterol).
- [By Keith Speights]
That wasn't the only analyst action in the obesity drug market. Cowen initiated coverage on Arena and one rival --�Orexigen Therapeutics (NASDAQ: OREX ) . The investment firm also upgraded Vivus (NASDAQ: VVUS ) .�
- [By Maxx Chatsko]
Unfortunately, doctors have not been knocking down the doors to prescribe Qsymia, and I foresee a similar slow start for Belviq when it launches this June. This wasn't unexpected for the new treatments, but over time the prospects should brighten. Market research performed by Orexigen (NASDAQ: OREX ) suggests that obesity prescriptions could grow 300% to 400% in the next five years from just 7.8 million in 2012. Given the obesity market's ability to support multiple blockbusters, investors may be wondering what other weight-loss therapies are being developed elsewhere in the industry. Here are three compounds in the pipeline that could become the future of the fight against obesity. �
- [By Jake L'Ecuyer]
Shares of Orexigen Therapeutics (NASDAQ: OREX) got a boost, shooting up 9.64 percent to $6.23 after the company announced successful results of the interim analysis of the Light Study.
Top 10 Mid Cap Companies To Watch In Right Now: ForeverGreen Worldwide Corp (FVRG)
ForeverGreen Worldwide Corporation, incorporated on March 18, 1999, is a holding company that operates through its wholly owned subsidiary, ForeverGreen International, LLC. The Company's product philosophy is to develop, manufacture and market the science and nature through formulations as the Company produces and manufacture a wide arrays of whole foods, nutritional supplements, personal care products and essential oils. The Company provides health answers, not only through exclusive nutritional whole food beverages, but also by providing a broad product lines of delicious whole foods that can be eaten for every meal, instead of the processed, fatty and preservative-laden synthetic meals prevalent in society.
The Company provides the every-meal answer with a variety of appetizing healthy food products that allow its Members and customers to eat healthy for every meal and snack throughout the day. In addition, the Company provides healthy personal care products as an alternative to the chemical-laden and synthetic products in the marketplace that may potentially negatively impacts its health. The Company's products, along with a distinct and fresh corporate philosophy and message of physical, mental, emotional and spiritual health through service to community and others, attract consumers as well as Members who wish to own a home-based business selling the Company's products and spreading its health message.
The Company's primary product is FrequenSea, a whole-food beverage consisting of a blend of marine phytoplankton, ionic sea minerals, frankincense, rose, ginger and aloe vera in a base of blueberry, cranberry and lime juice concentrate. soluble. FrequenSea is sold as a single bottle, in individual single-serving packets or even in four-bottle packs. The marine phytoplankton in FrequenSea contains more than 200 different sea algae that are all processed through patent-pending harvesting processes. Azul is a rich-in-antioxidant, delicious powdered blend of 24 raw whole foo! d and fruit ingredients and probiotics that are naturally dried and blended to preserve their natural integrity.The Company's whole food offerings consist of a variety of healthy, natural food products that are made onsite in the Company's whole-food manufacturing facility. Versativa Pulse based with hemp seed, consists of 17 different nuts, seeds, fruits, grains and other whole foods. Pulse is offered in various flavors, either loose in bags or in snack bars, and may be used as a snack or a meal replacement.
The Company competes with NuSkin, Neways, Young Living Essential Oils, Amway Corporation, Herbalife and NuSkin Enterprises.
Advisors' Opinion:- [By CRWE]
Today, FVRG remains (0.00%) +0.000 at $.780 thus far (ref. google finance Delayed: 10:06AM EDT August 12, 2013).
ForeverGreen Worldwide Corporation previously reported that sales are continuing to flourish. Sales for July 2013 increased to in excess of $1.44 million compared to $1.04 million during July 2012, an increase of 38.1%. Sequentially, sales increased 12.3% compared to June 2013.
- [By CRWE]
Last Friday, FVRG had shed (-15.38%) down -0.100 at $.550 with 20,050 shares in play at the close (ref. google finance August 16, 2013 ��Close).
ForeverGreen Worldwide Corporation previously reported that sales are continuing to flourish. Sales for July 2013 increased to in excess of $1.44 million compared to $1.04 million during July 2012, an increase of 38.1%. Sequentially, sales increased 12.3% compared to June 2013.
Hot Defense Stocks To Own For 2015: Alaska Air Group Inc. (ALK)
Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.
Advisors' Opinion:- [By Adam Levine-Weinberg]
Unintended consequences?
As I detailed last month, virtually every major U.S. airline is participating in the upgauging trend. Some, like JetBlue Airways (NASDAQ: JBLU ) , are expanding their fleets with larger aircraft than they have previously flown. Others, including Alaska Air (NYSE: ALK ) , are retrofitting existing planes to fit more seats onboard. Southwest Airlines (NYSE: LUV ) is doing both of these things! Others, like Delta Air Lines (NYSE: DAL ) , are buying larger planes to replace smaller ones that are being removed from service. - [By Ben Levisohn]
There’s been a lot of talk that investors are ready to shed their pessimistic views on airline stocks like Alaska Air (ALK) Delta Air Lines (DAL), United Continental Holdings (UAL) and American Airlines (AAL) and embrace them for the long term. The only problem: There’s no sign that they actually are.
- [By Michael Lewis]
Alaska Air Group (NYSE: ALK ) may be the best airline available to investors. It's been incredibly successful in its slow, steady expansion plan that not only increases routes but increases revenue per seat along the way. It's no secret either, as the stock has gone up north of 80% in the last 12 months. Yet, even with its tremendous run-up in stock price, the company still trades under 10 times forward earnings. Let's take a look at the first quarter and see if it's time to back up the truck for Alaska Air.
Top 10 Mid Cap Companies To Watch In Right Now: CBL & Associates Properties Inc. (CBL)
CBL & Associates Properties, Inc. is a public real estate investment trust. It engages in acquisition, development, and management of properties. The fund invests in the real estate markets of United States. Its portfolio consists of enclosed malls and open-air centers. CBL & Associates Properties is based in Oak Brook, Illinois. CBL & Associates Properties was founded in 1978 and is based in Chattanooga, Tennessee.
Advisors' Opinion:- [By Monica Gerson]
CBL & Associates Properties (NYSE: CBL) shares fell 5.20% to reach a new 52-week low of $18.43 after the company reported Q3 results.
VIVUS (NASDAQ: VVUS) shares dipped 11.58% to touch a new 52-week low of $8.32 on weak sales of Qsymia. Bank of America downgraded VIVUS from Buy to Neutral.
- [By Marc Bastow]
Regional shopping mall real estate investment trust (REIT) CBL & Associates (CBL) raised its quarterly dividend 6.5% to 24.5 cents per share, payable on Jan. 15 to shareholders of record as of Dec. 30.
CBL Dividend Yield: 5.44% - [By Dividend King]
CBL & Associates Properties Inc (CBL): CBL & Associates Properties Inc distributes an annual dividend of $0.84, has yield of 4.70% and a payout ratio of 135%. During the last 12 months, sales and income increased 0.40% and 17.80%, respectively.
Top 10 Mid Cap Companies To Watch In Right Now: Hallador Energy Company(HNRG)
Hallador Energy Company, through its subsidiary, Sunrise Coal, LLC, engages in the production and sale of steam coal in the United States. It owns interests in the Carlisle mine, an underground coal mine located in western Indiana. The company also owns a 45% equity interest in Savoy Energy, L.P., an oil and gas company with operations in Michigan; and a 50% interest in Sunrise Energy LLC, an entity engaged in natural gas operations. As of December 31, 2010, it had approximately 46.7 million tons of recoverable coal reserves. The company was formerly known as Hallador Petroleum Company and changed its name to Hallador Energy Company in December 2009. Hallador Energy Company was founded in 1949 and is headquartered in Denver, Colorado.
Advisors' Opinion:- [By John Udovich]
Obama�� war on coal has claimed another victim as James River Coal Company (NASDAQ: JRCC) files for Chapter 11, but coal stocks Westmoreland Coal Company (NASDAQ: WLB), Alliance Resource Partners, L.P. (NASDAQ: ARLP) and Hallador Energy Co (NASDAQ: HNRG) have still managed to put in a decent performance for investors���despite the industry headwinds coming from the White House. Just consider this: By 2025, 300 of America�� coal plants will close due to EPA policies for a total of 44,000 megawatts of generating capacity in 33 states to be taken off line. Moreover, Democrats have been putting up roadblocks to stop coal exports���one potential industry bright spot as the US�has the largest coal repository in the world.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Hallador Energy (Nasdaq: HNRG ) , whose recent revenue and earnings are plotted below.
Top 10 Mid Cap Companies To Watch In Right Now: FirstService Corporation (FSRV)
FirstService Corporation provides real estate related services to commercial, institutional, and residential customers in North America and internationally. The company operates in three segments: Commercial Real Estate Services, Residential Property Management, and Property Services. The Commercial Real Estate Services segment offers brokerage, property management and maintenance, valuation, project management, and corporate advisory services primarily on office, industrial, retail, and multi-unit residential properties to owners, investors, tenants, corporations, financial institutions, governments, and individuals. The Residential Property Management segment manages private residential communities, including condominiums, cooperatives, homeowner associations, and various other residential developments governed by multi-unit residential community associations. This segment provides a range of property management services comprising facility maintenance, landscaping, swim ming pool management, home service contracts, energy usage benchmarking and retrofit consulting, real estate sales and leasing, heating, air conditioning, and concierge services. The Property Services segment offers various residential and commercial services through delivery channels, such as contractor network, franchise networks, and branchises. It provides property preservation, maintenance, repair, and inspection services to residential mortgage lenders and servicers for properties in the delinquency and foreclosure process; residential and commercial restoration services serving the insurance restoration industry; residential and commercial painting, and decorating services; installed closet and home storage systems; exterior residential painting and window cleaning services; home repair and remodeling service franchise; home inspection; and residential floor coverings design and installation services. FirstService Corporation was founded in 1972 and is headquartered i n Toronto, Canada.
Advisors' Opinion:- [By John Udovich]
Midcaps CBRE Group Inc (NYSE: CBG) and Jones Lang LaSalle Inc (NYSE: JLL) are probably the better known real estate services stocks with the latter surging 12.36% yesterday on impressive earnings, but small cap stocks Kennedy-Wilson Holdings Inc (NYSE: KW) and FirstService Corporation (NASDAQ: FSRV) are also important real estate services providers that you may have overlooked. After all, real estate services stocks like the following would offer exposure to real estate by being invested in property as well as generating revenue from transactions, property management and other services: ��
- [By Seth Jayson]
FirstService (Nasdaq: FSRV ) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), FirstService missed slightly on revenues and missed expectations on earnings per share.
Top 10 Mid Cap Companies To Watch In Right Now: Wet Seal Inc (WTSL)
The Wet Seal, Inc., incorporated in 1990, is a specialty retailer operating stores selling apparel and accessory items designed for female customers aged 15 to 39 years old. As of January 28, 2012, the Company operated 558 retail stores in 47 states and Puerto Rico. Its products can also be purchased online through its Websites. It operates two nationwide, primarily mall-based, chains of retail stores under the names Wet Seal and Arden B. Wet Seal is a junior apparel brand for teenage girls who seek trend-focused clothing, with a target customer age range of 15 to 23 years old. Arden B is a fashion brand for the feminine contemporary woman. Arden B targets customers aged 25 to 39 years old and seeks to deliver collections of fashion and basic separates and accessories for various aspects of the customers��lifestyles. During fiscal year ended January 28, 2012 (fiscal 2011), the Company opened 28 and closed six Wet Seal stores and opened four and closed one Arden B stores.
The Company maintains a Web-based store located at www.wetseal.com, offering Wet Seal merchandise comparable to that carried in its stores, to customers over the Internet. The Company also maintains a Web-based store located at www.ardenb.com, offering Arden B merchandise comparable to that carried in its stores, to customers over the Internet. Its online stores are designed to serve as an extension of the in-store experience and offer a range of merchandise. Wet Seal stores average approximately 4,000 square feet in size. As of January 28, 2012, the Company operated 472 Wet Seal stores and Arden B stores average approximately 3,100 square feet in size.
The Company competes with Abercrombie & Fitch, Aeropostale, American Eagle, Anthropologie, Banana Republic, BCBG, bebe, Body Central, Charlotte Russe, Express, Forever 21, Gap, Guess?, H&M, Nordstrom, Old Navy, Pacific Sunwear, Rue 21, Target, Urban Outfitters and Zara. As of April 28, 2012, the Company operated a total of 553 stores in 47 states and Puerto! Rico, including 469 Wet Seal stores and 84 Arden B stores.
Advisors' Opinion:- [By Casey Kelly-Barton]
Wet Seal (NASDAQ: WTSL ) earned raves last year in the press and the disability community for its ads featuring 17-year-old Karrie Brown, an aspiring model who has Down syndrome. Target� (NYSE: TGT ) and Nordstrom� (NYSE: JWN ) both featured a 6-year-old with Down syndrome named Ryan in their catalogs without any fanfare, but shoppers and parents noticed and appreciated it.
- [By Ben Levisohn]
Shares of Abercrombie & Fitch have gained 11% to $36.78 today, even as Aeropostale (ARO) has dropped 5.2% to $8.50, and Zumiez (ZUMZ) has fallen 5.6% to $22.85. Wet Seal (WTSL), meanwhile, has gained 0.8% to $2.60 and�American Eagle Outfitters (AEO) has advanced 0.9% to %15.46.
- [By Seth Jayson]
Wet Seal (Nasdaq: WTSL ) reported earnings on May 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 4 (Q1), Wet Seal met expectations on revenues and met expectations on earnings per share. - [By Caroline Chen]
CEOs were replaced at Canadian Pacific Railway Ltd. (CP) and Procter & Gamble Co. (PG) after activist investor Bill Ackman pushed for shakeups. Greg Taxin�� Clinton Group Inc. prompted management changes at Nutrisystem Inc. (NTRI) and Wet Seal Inc. (WTSL) in the past year.
Top 10 Mid Cap Companies To Watch In Right Now: Cornerstone Total Return Fund Inc (CRF)
Cornerstone Total Return Fund, Inc. (the Fund) is a closed-end, diversified management investment company. Its investment objective is to seek capital appreciation with current income as a secondary objective. The Fund may invest without limitation in other closed-end investment companies and ETFs, provided that the Fund limits its investment in securities issued by other investment companies so that not more than 3% of the outstanding voting stock of any one investment company will be owned by the Fund. It invests in sectors, such as information technology, industrial, financials, healthcare, energy, consumer discretionary and consumer staples. The Fund is managed by Cornerstone Advisors, Inc. Advisors' Opinion:- [By Dividends4Life]
According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer
Top 10 Mid Cap Companies To Watch In Right Now: Lenovo Group Ltd (LNVGY)
Lenovo Group Limited (Lenovo) is a personal technology company serving customers in more than 160 countries. The Company is a personal computer (PC) vendor. The Company develops, manufactures and markets technology products and services. Its product lines include Think-branded commercial PCs and Idea branded consumer PCs, as well as servers, workstations, and a family of mobile Internet devices, including tablets and smart phones. Lenovo operates seven research and development centers and more than 46 world-class labs, including research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina, the United States. The Company is also engaged in investment holding. It operates in three segments: China, emerging markets (excluding China) and mature markets. Lenovo offers a range of commercial desktops to businesses of all sizes.
The Company�� products include laptops, tablets, desktops, workstations and servers. In May 2010, it launched the LePhone smartphone in China. During the fiscal year ended March 31, 2011 (fiscal 2011), China accounted for 46.4% of the Company�� total sales. During fiscal 2011, Emerging Markets (excluding China) accounted for 17.9% of the Company�� total sales. During fiscal 2011, Mature Markets accounted for 35.7% of the Company�� total sales. Its brands include ThinkPad notebook, as well as products carrying the ThinkCentre, ThinkStation, ThinkServer, IdeaCentre and IdeaPad sub-brands.
Advisors' Opinion:- [By Tim Brugger]
Of the five named PC makers included in Gartner's research, only Chinese vendor Lenovo (NASDAQOTH: LNVGY ) and U.S.-based Apple (NASDAQ: AAPL ) experienced PC shipment growth in Q1, 7.2% and 0.8% respectively.
- [By vinaysingh]
Apart from the above-mentioned business areas, HP's core competency still lies in PC markets and we are already aware of the smart devices wave that has almost swept the demand for desktops. In spite of battered demand in consumer PC market, HP increased the unit shipments by 6% y-o-y due to improved demand conditions in the commercial PC markets. As a result of a sturdy performance, HP's market share is now just slightly lower than that of Lenovo (LNVGY), the leader in the PC market. A report from Gartner showcases the shares of enterprises that occupy this market.
- [By Analyse360Degree]
In contrast Samsung had a superb time, reporting a YoY growth of 32.0%, as its shipments increased from 8.5 million to 11.2 million in a years time. However, the most impressive growth was displayed by the fast growing Chinese manufacturer Lenovo (LNVGY). The company reported a stupendous growth of 224.3% in tablet shipments and presently accounts for 4.1% of the global tablet market, up from 1.3% in 1Q13. Lenovo has been taking its devices very seriously and seems to be hell-bent on making a mark on the space, clearly understood from its acquisition of Google (GOOG) owned Motorola.
- [By fedezaldua]
On the other hand, IBM seems to be focusing in its most promising businesses and is willing to sell those segments that are not compelling from a ROIC standpoint. A great example of this is IBM's recent agreement to sell the company's x86 server business to Lenovo (LNVGY) for approximately $2.3 billion ($2.0 billion in cash and $300 million in Lenovo stock) or 0.5 times 2013 sales. On top of the cash and stock price, around 7,500 IBM employees shall be hired by Lenovo.
Top 10 Mid Cap Companies To Watch In Right Now: Rose Rock Midstream LP (RRMS)
Rose Rock Midstream, L.P., incorporated on August 5, 2011, owns, operates, develops and acquires a diversified portfolio of midstream energy assets. The Company is engaged in the business of crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Oklahoma and Texas. It serves areas that are through its exposure to the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin (DJ Basin) and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and the Mississippi Lime Play in the Mid-Continent region. The Company�� operations are conducted through, and the Company�� operating assets are owned by, its wholly-owned subsidiary, Rose Rock Midstream Operating, LLC, and its subsidiaries.
Cushing Storage
The Company owns and operates 28 crude oil storage tanks in Cushing with an aggregate storage capacity of approximately 7.0 million barrels and an additional 600,000 barrels of storage. The Company�� storage terminal has a combined capacity to deliver 480,000 barrels of crude oil per day, and has inbound connections with the White Cliffs Pipeline from Platteville, Colorado, the Great Salt Plains Pipeline, the Cimarron Pipeline from Boyer, Kansas, its Kansas and Oklahoma gathering system and two-way interconnections with all of the other storage terminals in Cushing.
Kansas and Oklahoma System
The Company owns and operates an approximately 640-mile crude oil gathering and transportation pipeline system and over 660,000 barrels of associated storage in Kansas and northern Oklahoma. This system gathers crude oil from throughout the region and delivers it to third-party pipelines and refineries and its Cushing terminal. During the years ended December 31, 2012, the Company�� transported an average of approximately 52,000 and 36,000 barrels per day, respectively, from multiple receipt points. The system has pipeline diameters ranging from 4 to 12 inches and! has 25 pump stations. This system also includes 18 truck unloading stations.
Bakken Shale Operations
The Company owns and operates a crude oil gathering, storage, transportation and marketing business in the Bakken Shale area in western North Dakota and eastern Montana. Using its fleet of trucks and two truck unloading facilities, the Company purchase crude oil at the wellhead, transport it through its trucks and third-party pipelines, including the Enbridge North Dakota System, and market it to customers. The Company owns tanks in Trenton and Stanley, North Dakota, with an aggregate storage capacity of 61,800 barrels that connect into the Enbridge North Dakota System. During the year ended December 31, 2012, the Company handled and marketed an average of approximately 7,100 barrels per day.
Platteville Facility
The Company owns and operates a modern, sixteen-lane crude oil truck unloading facility in Platteville, Colorado, which connects to the origination point of the White Cliffs Pipeline. Much of the crude oil production from the DJ Basin and the nearby Niobrara Shale must initially be transported by truck due to a shortage of gathering capacity. Throughput at the facility averaged 43,500 and 32,400 barrels per day for the years ended December 31, 2012. The facility includes 230,000 barrels of crude oil storage capacity. The Platteville facility also allows customer pipeline gathering systems to connect to the origination point of the White Cliffs Pipeline.
The Company competes with Enbridge Energy Partners, L.P., Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P., Blueknight Energy Partners, L.P., Enterprise Products Partners L.P, MV Purchasing, LLC, Plains All American Pipeline, L.P., National Cooperative Refinery Association, Plains All American Pipeline, L.P. and Eighty Eight Oil LLC.
Advisors' Opinion:- [By Robert Rapier]
Rose Rock Midstream (NYSE: RRMS) isn’t a name we have discussed much here. RRMS is an MLP that owns oil-gathering, storage and transportation assets in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas. The MLP was formed by midstream energy giant SemGroup (NYSE: SEMG), which acts as the general partner. RRMS had its IPO in December 2011 with an initial EV of $1.2 billion and a minimum yield of 4.7 percent.
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