dennis mccain
  • Home
  • Investing
    • Dividend Kings
    • Div Aristocrats
    • Div Champions
    • Business Dev Cos
    • Monthly Dividends
  • Options
    • Weekly Options

Investing

Ideas and Strategies on Investing.

Previous Articles

MKS Instruments

1/30/2018

0 Comments

 
MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, control, power, deliver, monitor and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. their products are derived from core competencies in automation and control, gas composition analysis, lasers, materials delivery, optics, photonics, pressure, power, reactive gas and vacuum. They also provide services relating to the maintenance and repair of their products, software, service and maintenance, installation services and training.


​MKS Instruments, Inc.
provides instruments, subsystems, and process control solutions that measure, control, power, deliver, monitor, and analyze critical parameters of manufacturing processes worldwide. The company operates through two segments, Vacuum & Analysis and Light & Motion. The Vacuum & Analysis segment provides analytical and control solutions products, including gas analyzers, automation control products, IO modules, automation software, data analytics software, and precision machined components and electromechanical assemblies; and materials delivery solutions products comprising flow and valve technologies, as well as integrated pressure measurement and control subsystems to provide customers with precise control capabilities that are optimized for a given application. It also offers power delivery, plasma, and reactive gas generation products used in semiconductor and other thin film applications, and in medical imaging equipment applications; and direct and indirect pressure measurement and integrated process solutions. The Light & Motion segment offers lasers and laser-based systems, including lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, high-energy pulsed lasers, and tunable lasers, as well as accessories; optics products, such as precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings, as well as subsystems and subassemblies; photonics products comprising photonics instruments and systems, and vibration and motion control products, as well as three-dimensional non-contact measurement sensors and equipment. It markets and sells its products and services through global direct sales organization, independent distributors and sales representatives, Websites, and product catalogs. The company was founded in 1961 and is headquartered in Andover, Massachusetts.
(Summary) (Company) (Chart)
28 January 2018
Price $104.20
1yr Target $117.83
Analysts 6
Dividend $0.72
Payout Ratio 13.09%

1yr Cap Gain 13.08%
Yield 0.69%
1yr Tot Return 13.77%

P/E 18.65
PEG 0.56
Beta 1.07


EPS (ttm) $5.50
EPS next yr $6.56
Forward P/E 15.89
EPS next 5yr 33.42%
1yr Price Support $219.23

Market Cap $5.66 Bil
Revenues $1.81 Bil
Earnings $307.00 Mil
Profit Margin 16.96%

Quick Ratio 3.10
Current Ratio 4.20
Debt/Equity 0.29


1yr RevGR 59.18%
3yr RevGR 24.32%
5yr RevGR 9.50%

1yr EarnGR -14.92%
3yr EarnGR 42.02%
5yr EarnGR -4.57%

1yr DivGR 0.74%
3yr DivGR 2.02%
5yr DivGR 2.53%

ROA 13.40%
ROE 22.40%


Recent Events and Organizational Restructuring

On April 29, 2016, MKS Instruments completed the acquisition of Newport Corporation. The Company paid to the former Newport stockholders aggregate consideration of approximately $905 million and repaid approximately $93 million of debt. Newport is a global supplier of advanced technology products and systems to customers in the scientific research and defense/security, microelectronics, life and health sciences and industrial manufacturing markets.

In conjunction with the acquisition of Newport, MKSI changed the structure of their reportable segments. The Company's two reportable segments are the Vacuum & Analysis segment and the Light & Motion segment. The Vacuum & Analysis segment represents the legacy MKS business and the Light & Motion segment represents the legacy Newport business.

The Vacuum & Analysis segment provides a broad range of instruments, components, subsystems and software which are derived from core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, residual gas analysis, leak detection, control and information technology, ozone generation and delivery, RF & DC power, reactive gas generation and vacuum technology. The Light & Motion segment provides a broad range of instruments, components and subsystems which are derived from core competencies in lasers, photonics and optics.

MKSI groups their products into seven product groups based upon the similarity of the product function, type of product and manufacturing processes. These seven groups are: Analytical and Controls Solutions Products; Materials Delivery Solutions Products; Power, Plasma and Reactive Gas Solutions Products; Pressure and Vacuum Measurement Products; Photonics Products; Optics Products; and Laser Products. The Analytical and Controls Solutions Products, Materials Delivery Solutions Products, Power, Plasma and Reactive Gas Solutions Products and the Pressure and Vacuum Measurement Products are included in the Vacuum & Analysis segment and the Photonics Products, Optics Products and Lasers Products are included in the Light & Motion segment.

Markets and Applications

From the very beginning of the Company, management has focused on the needs of the customer and establishing long-term collaborative relationships. Their primary markets are manufacturers of capital equipment for semiconductor manufacturing, electronic thin films, life and health sciences, process and industrial technologies, as well as research and defense. Approximately 58%, 69% and 70% of net revenues for 2016, 2015 and 2014 were from sales to semiconductor capital equipment manufacturers and semiconductor device manufacturers. As a result of the Company's acquisition of Newport, it's now estimated that sales to semiconductor capital equipment manufacturers and semiconductor device manufacturers may account for approximately 50% of total sales going forward.

Approximately 42%, 31% and 30% of net revenues in 2016, 2015 and 2014 were from other advanced manufacturing applications. These include, but are not limited to, electronic thin films, life and health sciences, process and industrial technologies, as well as research and defense.

A significant portion of net revenues are from sales to customers in international markets. For years ending in December 31, 2016, 2015 and 2014, international net revenues accounted for approximately 48%, 44% and 43% of total net revenues. A significant portion of international net revenues were go Korea, Japan and Israel. 

Semiconductor Manufacturing Applications. The majority of these sales are derived from products sold to semiconductor capital equipment manufacturers and semiconductor device manufacturers. These products are used in the major semiconductor processing steps such as depositing thin films of material onto silicon wafer substrates, etching, cleaning, lithography, metrology and inspection. In addition, the Company provides specialized instruments and software to monitor and analyze process performance. MKSI anticipates that the semiconductor manufacturing market will continue to account for a substantial portion of their sales. While the semiconductor device manufacturing market is global, major semiconductor capital equipment manufacturers are concentrated in Japan, Korea, Taiwan, the United States and China.

Other Markets. In addition to semiconductor manufacturing, the Company's products are used in the manufacture of electronic thin films, life and health sciences, process and industrial technologies, as well as research and defense.

Electronic Thin Films. Electronic Thin Films are a primary component of numerous electronic products including flat panel displays, light emitting diodes, solar cells and data storage media. Major manufacturers of Electronic Thin Film equipment are concentrated in China, Japan, Korea, Taiwan and the United States.

Life and Health Sciences. The Company's products for Life and Health Sciences are used in a diverse array of applications including bioimaging, medical instrument sterilization, medical device manufacturing, analytical, diagnostic and surgical instrumentation, consumable medical supply manufacturing and pharmaceutical production. The Life and Health Sciences customers are located globally.

Process and Industrial Technologies. Process and Industrial Technologies encompasses a wide range of diverse applications such as architectural glass coating, laser marking, measurement and scribing, natural gas and oil production and environmental monitoring. Process and Industrial Technologies manufacturers are located in developed and developing countries across the globe.

Government and Research. ​In addition, the Company's products are sold to government, university and industrial laboratories for applications involving research and development in materials science, physical chemistry, photonics, optics and electronics materials. This products are also sold for monitoring and defense applications including surveillance, imaging and infrastructure protection. Major equipment and process providers and research laboratories are concentrated in China, Europe, Japan, Korea and the United States.
Product Groups

Vacuum and Analysis Segment. The Vacuum and Analysis segment includes Analytical and Control Solutions; Materials Delivery Solutions; Power, Plasma and Reactive Gas Generation Solutions; and Pressure and Vacuum Measurement Solutions.

Analytical and Control Solutions. The Analytical and Control Solutions products include gas analyzers, automation control products, IO modules, automation software, data analytics software, and precision machined components and electromechanical assemblies.

Materials Delivery Solutions. The Materials Delivery Solutions products include flow and valve technologies as well as integrated pressure measurement and control subsystems to provide customers with precise control capabilities that are optimized for a given application.

Power, Plasma and Reactive Gas Solutions. The Power, Plasma and Reactive Gas Solutions products include power delivery, plasma and reactive gas generation products used in semiconductor and other thin film applications and in medical imaging equipment applications.

Power Delivery Products. MKSI designs and manufactures microwave, direct current and radio frequency power delivery systems as well as radio frequency matching networks and metrology products. In the semiconductor, thin film and other market sectors, their power supplies are used to provide energy to various etching, stripping and deposition processes. Our power amplifiers are also used in medical imaging equipment .

Plasma and Reactive Gas Generation Products. They design and manufacture reactive gas generation products, which create reactive species. A reactive species is an atom or molecule in an unstable state, which is used to facilitate various chemical reactions in the processing of thin films (deposition of films, etching and cleaning of films and surface modifications). A number of different technologies are used to create reactive gas including different plasma technologies and barrier discharge technologies.

Pressure and Vacuum Measurement Solutions. The Company's Pressure and Vacuum Measurement Solutions products consist of direct and indirect pressure measurement and integrated process solutions. Each of our pressure measurement and vacuum product lines consist of products that are designed for a variety of pressure ranges and accuracies.
​
Light and Motion Segment

The Light and Motion segment includes Lasers, Optics and Photonics solutions.

Lasers. The Laser products segment includes lasers and laser-based systems to include ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, high-energy pulsed lasers and tunable lasers. In addition to providing a wide range of standard and configured laser products and accessories to our end-user customers, we also work closely with our original equipment manufacturer customers to develop lasers and laser system designs optimized for their product and technology roadmaps.

Optics. The Optics products segment includes precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors and ruled and holographic diffraction gratings. The Company also designs, develops and manufactures subsystems and subassemblies that integrate a broad portfolio of products and technologies into solutions that meet the specific application requirements of OEM and select end-user customers.

Photonics. The Photonics products segment includes photonics instruments and systems, vibration and motion control as well as three-dimensional non-contact measurement sensors and equipment.
​
My Assessment

This Company is obviously integral to quite a few manufacturing processes and companies around the world. The share price is also undervalued based on the Company's fundamentals listed above. Sales are growing very nicely and dividends have been improving but only slowly. I think that's probably due to the erratic nature of their earnings, both of which should increase greatly in the months and years ahead. 

Earnings are expected to increase at an annual rate of over 33% over the next five years and that should help increase both the dividend as well as the share price. I think the analysts projecting the future stock price have missed the mark on these shares. I believe they could easily move toward $130/$140 per share by this time next year simply explained by an expanding P/E and a PEG approaching 1. I think this is an outstanding opportunity for stock appreciation and dividend growth.

I'm looking to start a position in these shares very soon that I'll continue to develop over time by buying on dips and augmenting funds received from dividend payments. Right now the shares seem to be consolidating between $95 and $108 per share so that's the target for my initial entry. Hopefully I can get a position started before this takes off and gets away from me. 
0 Comments

Advanced Energy Industries

1/23/2018

0 Comments

 
Advanced Energy Industries has spent more than three decades perfecting power—enabling design breakthroughs and driving growth for leading semiconductor and industrial customers. Their precision power and control technologies, along with their applications know-how, have created close partnerships and perpetual innovation in thin-film and industrial manufacturing.

Founded in 1981, Advanced Energy has built a diversified and global business, delivering advanced power and control technologies to customers across a broad range of industries. The AE team, deployed throughout North America, Europe, and Asia, provides technical expertise and responsive and agile power solutions for thin-film and industrial manufacturing.
​

Picture

​Advanced Energy Industries, Inc. designs, manufactures, sells, and supports power conversion and control products that transform power into various usable forms. It offers process power systems, including direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, as well as matching networks and remote plasma sources for reactive gas applications and RF instrumentation. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, crystal growing, and other semiconductor and solar applications, as well as in chemical processing, glass manufacturing, and other general industrial power applications; and high voltage products for various applications, including semiconductor wafer processing and metrology, scientific instrumentation, mass spectrometry, industrial printing, and analytical x-ray systems. In addition, it offers repair, conversions, upgrades, and refurbishments services. The company markets and sells its products through direct sales force, independent sales representatives, and distributors in the United States, Europe, and Asia. Advanced Energy Industries, Inc. was founded in 1981 and is headquartered in Fort Collins, Colorado.
(Summary) (Company) (Chart)
21 January 2018
Price $77.53
1yr Target $89.50
Analysts 6
Dividend $0.00
Payout Ratio 0.00%

1yr Cap Gain 15.43%
Yield 0.00%
1yr Tot Return 15.43%

P/E 15.15
PEG 0.32
Beta 1.26


EPS (ttm) $5.12
EPS next yr $4.97
Forward P/E 15.62
EPS next 5yr 47.40%
1yr Price Support $235.57

Market Cap $3.08 Bil
Revenues $627.10 Mil
Earnings $205.50 Mil
Profit Margin 32.76%

Quick Ratio 5.10
Current Ratio 5.90
Debt/Equity 0.00


1yr RevGR 16.60%
3yr RevGR 6.96%
5yr RevGR -1.32%

1yr EarnGR ---
3yr EarnGR ---
5yr EarnGR 30.81%

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 32.80%
ROE 45.50%


Overview

Advanced Energy provides highly-engineered, mission-critical, precision power conversion, measurement and control solutions to global customers. They design, manufacture, sell and support power conversion products and solutions that transform power into various usable forms in various applications ranging from manufacturing and industrial processes to instrumentation and test and measurement. The market for power conversion solutions is large with hundreds of suppliers and subsystem/component manufacturers. AEIS focuses on highly-engineered products that solve their customers’ toughest mission-critical applications.

The Company's process power products enable manufacturing processes that use thin films for various products, such as semiconductor devices, flat panel displays, thin film renewables, hard and industrial coatings and architectural glass. They also supply power control modules for controlling thermal processes, and thermal instrumentation products for advanced temperature measurement, both of which provide solutions for semiconductor, thin film industrial, and heavy industry. Remote plasma sources are used in the thin films processing industries and in gas abatement applications. The Compay's high voltage products offer unique power solutions for semiconductor, analytical instrumentation, industrial x-ray, and medical imaging applications. Their network of global service support centers provides revenue as we offer repair services, conversions, upgrades, and refurbishments to companies using our products.

In 2014, in connection with broadening product offerings, the Compay acquired all of the outstanding common stock of HiTek Power Group and UltraVolt, Inc., which offer a comprehensive portfolio of high voltage and custom built power conversion products. These products target applications including semiconductor wafer processing and metrology, scientific instrumentation, mass spectrometry, industrial printing and analytical x-ray systems for industrial and analytical applications, as well as high voltage power supplies and modules ranging from benchtop and rack mount systems to microsize printed circuit board mount modules.

In 2014 the Company also acquired the intellectual property from AEG Power Solutions' Power Control Modules which is comprised of the Thyro-Family of products and accessories and has applications in different industries ranging from materials' thermal processing through chemical processing, glass manufacturing and numerous other general industrial power applications.


​Products and Services


The Company's products are designed to enable new process technologies, improve productivity, and lower the cost of ownership for our customers. They also provide repair and maintenance services for all of their products.

In 2014, AEIS changed their organizational structure from two business units (formerly known as the Thin Films Business Unit and the Solar Energy Business Unit) to a single functional organization with various product lines organized as reportable segments, Precision Power and Inverters. 

​AEIS principally serves OEMs and end customers in the semiconductor, flat panel display, high voltage, solar panel, and other industrial capital equipment markets. The Company's products are used in diverse markets, applications, and processes including the manufacture of capital equipment for semiconductor devices, thin film applications for thin film renewables and architectural glass, and for other thin film applications including flat panel displays, and industrial coatings. These markets can be cyclical in nature. Therefore, demand for products and the financial results can change as demand for manufacturing equipment and repair and maintenance services change in response to consumer demand. Other factors, such as global economic and market conditions and technological advances in fabrication processes and renewable applications can also have an impact on our financial results, both positively and negatively. 

The process power systems include direct current, pulsed DC, low frequency, high voltage, and radio frequency power supplies, matching networks, remote plasma sources for reactive gas applications and RF instrumentation. These power conversion systems refine, modify, and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable.

The power control modules and thermal instrumentation products are used in the semiconductor industry, including adjacent thin film applications for solar PV and light emitting diode industries, and heavy industries, for thermal control and temperature measurement solutions for applications in which time-temperature cycles affect material properties, productivity, and yield. These products are used in rapid thermal processing, chemical vapor deposition, crystal growing, and other semiconductor and solar applications requiring non-contact temperature measurement. They are also used in chemical processing, glass manufacturing and numerous other general industrial power applications.

The high voltage products are designed to meet the demanding requirements of original equipment manufacturers worldwide. Their high voltage power solutions and custom built power conversion products offer high frequency, high voltage topology, providing wide input and output operating ranges while retaining excellent stability and efficiencies ranging from benchtop and rackmount systems to microsize printed circuit board mount modules. The products target applications including semiconductor wafer processing and metrology, scientific instrumentation, mass spectrometry, industrial printing and analytical x-ray systems for industrial and analytical applications.

The global support services group offers in-warranty and out-of-warranty repair services in the regions in which the Company operates, providing AEIS with preventive maintenance opportunities. Our customers continue to pursue low cost of ownership of their capital equipment and are increasingly sensitive to the significant costs of system downtime. They expect that suppliers offer comprehensive local repair service and customer support. To meet these market requirements, AEIS maintains a worldwide support organization comprising of both direct and indirect activities through partnership with local distributors primarily in the United States, China, Japan, South Korea, Taiwan, Germany, and Great Britain. 



​Markets


The Company's products compete in markets for high tech manufacturing capital equipment and renewable energy production. These markets are not generally subject to seasonality; however, they are cyclical due to sudden changes in customers’ manufacturing capacity requirements and spending, which depend in part on capacity utilization, demand for customers’ products, inventory levels relative to demand, government incentives and subsidies, and access to affordable capital. 

SEMICONDUCTOR CAPITAL EQUIPMENT

Customers in the semiconductor capital equipment market incorporate our products into equipment that make integrated circuits. The Company's power conversion systems provide the energy to enable thin film processes, such as deposition and etch, and high voltage applications such as ion implant, wafer inspection and metrology.

The thermal instrumentation products measure the temperature of the processed substrate or the process chamber. The remote plasma sources deliver ionized gases for reactive chemical processes used in cleaning, surface treatment, and gas abatement. Precise control over the energy delivered to plasma-based processes enables the production of integrated circuits with reduced feature sizes and increased speed and performance.

INDUSTRIAL POWER

Customers in the industrial capital equipment market incorporate industrial process power and specialty power products into a wide variety of equipment used in applications such as thin films, advanced material fabrication, analytical instrumentation and industrial x-ray.

In the thin film equipment market, the Company's products are used in the manufacturing of products such as flat panel displays, architectural glass, solar PV panels, and similar thin film coating including consumer products, hard, decorative, and optical coating. The thermal specialty power products are used in applications including metal alloy/ceramic fabrication and treatment, glass manufacturing, industrial furnace and chemical processing application. The high voltage specialty power products are used in applications including scanning electron microscopy, medical equipment, and analytical instrumentation applications such as x-ray, mass spectroscopy.

GLOBAL SUPPORT

The Company's network of global service support centers provides local repair and field service capability in key regions as well as provides upgrades and refurbishment services, and sales of used equipment to businesses that use our products.

Customers

Products are sold worldwide to approximately 200 OEMs and integrators and directly to more than 1,500 end users. The Company's ten largest customers accounted for approximately 67.7% of sales in 2016, 61.2% of sales in 2015, and 59.7% of sales in 2014. AEIS expects that the sale of products to their largest customers will continue to account for a significant percentage of our sales for the foreseeable future.


Applied Materials Inc., the Company's largest customer, accounted for 35.2% of sales in 2016, 29.8% of sales in 2015, and 29.8% of sales in 2014. Lam Research accounted for 20.7% of sales in 2016, 20.3% of sales in 2015, and 19.9% of sales in 2014. No other customer accounted for greater than 10% of sales in 2016, 2015, or 2014. 

Picture

​My Assessment


I believe this is a rock solid company that's about one week past the optimal buy price of around $70. But it's not too late to get into it and the probability of success has probably increased since it just moved above it's 200 day moving average. I think this stock is easily headed toward $90 per share and could easily hit triple digits in the next 12 months for a nearly 30% return. Obviously any pullback toward that $70 entry this week would make this an even sweeter deal. I expect to pick up shares of this company as funds become available with the intent of holding for at least $100 per share and more. 

0 Comments

General Electric

1/16/2018

2 Comments

 
Picture

​This is purely a technical call. General Electric has been falling for what seems like forever and it's devastated a lot of old school portfolios. Personally I believe this goes back to earlier management that tried to get GE into everything and a lot of things GE knew very little about. It ended up being the worse performing stock of the DJIA for the year 2017.

Recent management changes is not getting back to basics and traders are starting to understand. A quick look at the chart shows a bottoming in the $17 range and it's not moving up slightly. It's not in the $18 range and most investors don't believe the changes the company is making. That's a recipe for success in the markets. Getting in early enhances percentage moves and GE may just be beginning to move higher. 

To be quite honest I actually thought this stock would bottom closer to the $14 range but it really doesn't look like that's going to happen. So my strategy here is to start a small position at this level and see where it goes. If it goes higher then I'll be expanding my position. I have my fingers crossed.
 
Picture
General Electric Company operates as an infrastructure and technology company worldwide. Its Power segment offers gas and steam power systems; maintenance, service, and upgrade solutions; distributed power gas engines; water treatment, wastewater treatment, and process system solutions; and nuclear reactors, fuels, and support services. The company's Renewable Energy segment provides wind turbine platforms, and hardware and software; onshore and offshore wind turbines; and solutions, products, and services to hydropower industry. Its Oil & Gas segment offers surface and subsea drilling and production systems, and equipment for floating production platforms; and compressors, turbines, turboexpanders, reactors, industrial power generation, and auxiliary equipment. The company's Aviation segment designs and produces commercial and military aircraft engines, integrated digital components, and electric power and mechanical aircraft systems; and provides aftermarket services. Its Healthcare segment offers diagnostic imaging and clinical systems; products for drug discovery, biopharmaceutical manufacturing, and cellular technologies; and medical technologies, software, analytics, cloud solutions, and implementation services. The company's Transportation segment provides freight and passenger locomotives, and rail and support advisory services; and parts, integrated software solutions and data analytics, software-enabled solutions, mining equipment and services, and marine diesel and stationary power diesel engines and motors, as well as overhaul, repair and upgrade, and wreck repair services. Its Energy Connections & Lighting segment offers industrial, grid, power conversion, automation and control, lighting, and current solutions. The company's Capital segment provides industrial and energy financial services; and commercial aircraft leasing, financing, and consulting services. General Electric Company was founded in 1892 and is based in Boston, Massachusetts.
​(Summary) (Company) (Chart)
14 January 2017
Price $18.76
1yr Target $21.92
Analysts 14
Dividend $0.48
Payout Ratio 55.81%

1yr Cap Gain 16.84%
Yield 2.55%
1yr Tot Return 19.39%

P/E 21.92
PEG 1.69
Beta 1.06


EPS (ttm) $0.86
EPS next yr $1.03
Forward P/E 18.28
EPS next 5yr 13.00%
1yr Price Support $13.39

Market Cap $162.60 Bil
Revenues $123.78 Bil
Earnings $7.56 Bil
Profit Margin 6.10%

Quick Ratio ---
Current Ratio ---
Debt/Equity 1.79


1yr RevGR 5.37%
3yr RevGR 2.95%
5yr RevGR -3.34%

1yr EarnGR ---
3yr EarnGR -11.08%
5yr EarnGR -6.27%

1yr DivGR 1.08%
3yr DivGR 5.53%
5yr DivGR 8.80%

ROA 1.90%
ROE 9.40%


2 Comments

Zayo Group

1/9/2018

1 Comment

 
Zayo Group provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services and has headquarters in Boulder, Colorado and London, England. Zayo’s primary customer segments include data centers, wireless carriers, national carriers, ISPs, enterprises, and government agencies. Zayo Group was built largely through acquisitions. It absorbed thirty companies from 2007 to 2014.

Zayo owns a fiber network that spans more than 122,000 route miles in North America and Europe. The network is connected to 29,402 buildings, including 11,300 data centers, 15,300 enterprise buildings, and 6,000 cellular towers. Zayo operates a 
Tier 1 IP network, with settlement-free peering with all other Tier 1 providers. Additionally, Zayo operates 46 colocation facilities with a combined footprint of 867,000 sq. ft. of sellable space. Zayo's services include dark fiber, wavelengths, SONET, Ethernet, IP services, colocation, wireless backhaul and small cells
.


​Acquisition History


Zayo was founded in 2007 by Dan Caruso and John Scarano. In 2007, Zayo acquired Memphis Network, VoicePipe, Onvoy Inc, PPL Telcom and Indiana Fiber Works.

In 2008, Zayo acquired Columbia Fiber Solution, Adesta Communications assets, two sets of fiber assets from Citynet, two sets of fiber assets from Northwest Telephone, and CenturyTel Regional Markets.
​

In 2009, Zayo acquired FiberNet Telcom Group, Inc.

In 2010, Zayo acquired AGL Networks, American Fiber Systems, and Dolphini’s Cummins Station data center and colocation services.

In 2011, Zayo acquired MarquisNet data center business in Las Vegas, and 360networks.

In 2012 Zayo acquired AboveNet, FiberGate, Arialink, US Carrier Telecom, First Telecom Services, and Maryland-based Litecast/Balticore.

In 2013 Zayo acquired Austin-based data center operator Core NAP, Access Communications, Midwest-based dark fiber operator FiberLink, and Corelink Data Centers.

In 2014, Zayo acquired Dallas-based data center operator CoreXchange, Neo Telecoms, and Geo Networks.

In 2015, the company acquired Latisys, IdeaTek Systems and Viatel. In 2016, Zayo acquired a new Dallas, TX data center from Stream Data Centers, Clearview International and Allstream, Canada's main facilities-based inter-exchange carrier which has its roots in the railway telegraph business CNCP Telecommunications. As of July 2016, Zayo has completed 39 acquisitions.

On November 30, 2016, Zayo Group Holdings Inc said it would buy smaller rival Electric Lightwave for $1.42 billion in cash to expand its fiber network on the U.S. West Coast.

Picture

​Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other. The Fiber Solutions segment provides dark fiber, and fiber-to-the-tower and small cell mobile infrastructure services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Transport segment offers lit bandwidth infrastructure solutions comprising wavelength, wholesale IP services, and SONET services through its metro, regional, and long-haul fiber networks for carriers, content providers, financial services companies, healthcare, government entities, education institutions, and other medium and large enterprises. The Enterprise Networks segment provides communication solutions, such as Ethernet, enterprise private and connectivity services, managed services, and cloud based compute and storage products to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions, including colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides Internet protocol (IP), Internet, voice, IP trunking, cloud private branch exchange, and collaboration services, as well as unified communications for small and medium business customers. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. Zayo Group Holdings, Inc. was founded in 2007 and is headquartered in Boulder, Colorado.
(Summary) (Company) (Chart)
7 January 2017
Price $36.05
1yr Target $40.62
Analysts 13
Dividend $0.00
Payout Ratio 0.00%

1yr Cap Gain 12.67%
Yield 0.00%
1yr Tot Return 12.67%

P/E 95.88
PEG 2.43
Beta ---


EPS (ttm) $0.38
EPS next yr $0.59
Forward P/E 61.21
EPS next 5yr 39.40%
1yr Price Support $23.24

Market Cap $8.93 Bil
Revenues $2.34 Bil
Earnings $93.20 Mil
Profit Margin 3.97%

Quick Ratio 0.90
Current Ratio 0.90
Debt/Equity 3.81


1yr RevGR 27.77%
3yr RevGR ---
5yr RevGR ---

1yr EarnGR ---
3yr EarnGR ---
5yr EarnGR ---

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA 1.10%
ROE 6.80%


My Path Forward

​This company is becoming more and more critical to the infrastructure of both the country and the entire world. So to ignore a company like this would simply be silly. But it would also dumb to over pay for a company like this, and right now I would consider this company expensive at 95 times earnings.

The trick here is to try to understand what future earnings will be for a company that expands through acquisition. Apparently future earnings are expected to come in at a growth rate of 40%, but that could easily change if additional acquisitions occur. And that's a very likely possibility. It appears that the only thing that will restrain the company's appetite is it's debt load which is already almost 4 times its equity. That's high by most standards but then this is an infrastructure company. 

I'll be looking to start a position in this company if and when the stock pulls back to a more reasonable price. Today that would be closer to $30 per share, but that could change if future acquisitions occur. Basically I currently see this stock as an overpriced stock based on earning projections that could change drastically in the future. Therefore this company is going on my watch list as a potential buy whenever the price pulls back or projected earning growth increases. Both could happen very quickly so this will be monitored closely.

1 Comment

Ampio Pharmaceuticals

1/3/2018

0 Comments

 
Ampio Pharmaceuticals is a drug discovery and development company combining scientific, regulatory, and business capabilities to efficiently develop a portfolio of novel therapeutic candidates.  These therapeutic candidates, if approved, will address significant inflammatory conditions for which limited treatment options exist.

Ampio’s therapeutic product pipeline has been developed through more than two decades of study at leading hospital-based research centers. Rigorous preclinical and clinical research efforts have yielded a diverse portfolio of late-stage product candidates focusing on the world’s most prevalent inflammatory conditions including osteoarthritis and diabetic macular edema.

Significant discoveries in both basic science and clinical research have resulted in Ampio receiving over 180 patents throughout the world, with hundreds more pending.  In addition hundreds of peer-reviewed publications, abstracts, and scientific presentations highlight the depth of research supporting Ampio’s therapeutic product candidates.


Ampio’s leading product candidates are Ampion and Optina and it's now conducting the second pivotal clinical trial in the US for Ampion, a biologic intra-articular injection being studied for the treatment of osteoarthritis of the knee.  Ampio is also conducting a late-stage US clinical trial for Optina, an oral agent being studied for the treatment of diabetic macular edema.  Millions of patients worldwide are affected by these conditions, for which limited treatment options exist.
​

Picture
Ampio Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on the development of therapies for the treatment of prevalent inflammatory conditions in the United States. The company is developing compounds that decrease inflammation by inhibiting specific pro-inflammatory compounds by affecting specific pathways at the protein expression and at the transcription level; activating specific phosphatase or depleting available phosphate needed for the inflammation process; and decreasing vascular permeability. Its product pipeline includes Ampion, an intra-articular injection for the treatment of osteoarthritis of the knee; and Optina, which has completed Phase II clinical trials for diabetic macular edema. Ampio Pharmaceuticals, Inc. is headquartered in Englewood, Colorado.
(Summary) (Company) (Chart)
1 January 2018
Price $4.07
1yr Target $14.00
Analysts 1
Dividend $0.00
Payout Ratio 0.00%

1yr Cap Gain 243.98%
Yield 0.00%
1yr Tot Return 243.98%

P/E ---
PEG ---
Beta 0.40


EPS (ttm) $-0.20
EPS next yr ---
Forward P/E ---
EPS next 5yr ---
1yr Price Support ---

Market Cap $273.63 Mil
Revenues ---
Earnings $-12.10 Mil
Profit Margin ---

Quick Ratio 1.00
Current Ratio 1.00
Debt/Equity ---


1yr RevGR ---
3yr RevGR ---
5yr RevGR ---

1yr EarnGR ---
3yr EarnGR ---
5yr EarnGR ---

1yr DivGR ---
3yr DivGR ---
5yr DivGR ---

ROA -103.40%
ROE -319.20%


My approach to this company

This is purely a technical call for me based upon inspection of the company's stock chart. It's recently exploded higher and its technical ranking is in the top 10 small capitalization companies. Obviously the best time to buy these shares was in late November as it broke above $1 per share on increasing volume. A second move in mid December on even higher volume was a confirmation of this technical move higher. Another push higher last week and it looked like this thing had gotten way ahead of itself but a pullback late Friday opened up an opportunity to start accumulating shares. 

I started to selling puts a couple of weeks ago as this started to take off. I wasn't sure how fast and how high it was going to go but it was evident it wanted to move higher. I then used that money to accumulate shares of the company. I was intent on building up a position slowly over time but Friday offered another opportunity to I bought more. I'm still assessing the situation to see what the next move is but I believe there more upside for these shares. I really believe these shares will be moving up to double digits and that's at least a double from here. 
0 Comments
    Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF

    Picture

    Author

    I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.


    RSS Feed


    Picture
    Top 100 Blogs for Dividend Investors

    Picture
    Follow Me on StockTwits!



    Dividend Growth Stocks
    Dividend Growth Investor


    Picture
    I'm on Seeking Alpha too!

    Archives

    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013


    ADDITIONAL RESOURCES:
    4 Month INDU Chart
    Dividend Ex-Dates
    Bidness Etc
    SharpCharts Voyeur
    StockCharts.com

    FINVIZ
    Seeking Alpha
    BDC Reporter
    Roadmap2Retire
    DivHut
    Dividend Growth Investor

    Dividend Yield

    Stock Market Mentor
    Chart Swing Trader
    Dividend Announcements
    IBD TV
    Stocks to Watch Today
    Dividend Detective

    DISCLAIMER
     I am not a licensed investment adviser, and I am not providing investment advise for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.

    Picture
Powered by Create your own unique website with customizable templates.