J.C. Penney� (NYSE: JCP ) potentially destroyed huge amounts of shareholder wealth last week with a 44% dilution of shareholders in what could be management's last chance to return the company to relevance with close to $1 billion in new cash. Just a few weeks prior,�Clean Energy Fuels� (NASDAQ: CLNE ) issued $220 million in convertible notes, paying 5.25% interest to bondholders while also seeing CEO Andrew Littlefair buy almost $1.5 million in shares.�
While dilution through new share offerings and the accumulation of debt can both be detrimental, but not always. What was the result of J.C. Penney and Clean Energy Fuels' recent actions, and what should shareholders look for?
Paying for growth
Clean Energy is in full growth mode with its "America's Natural Gas Highway," and its use of convertible notes to raise capital, while not directly dilutive, still carries the potential to dilute shareholders if the notes are converted to shares. Per the press release:
10 Best Oil Service Stocks To Watch For 2015: Skechers U.S.A. Inc.(SKX)
Skechers U.S.A., Inc. engages in the design, development, marketing, and distribution of footwear for men, women, and children in the United States and internationally. The company offers various products comprising casuals, such as boots, shoes, and sandals for men, as well as slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals; relaxed fit for men; sandals; and casual fusion under the Skechers USA brand name. It also provides a line of sport footwear for men and women, including men?s lifestyle athletic footwear, lightweight women?s sneakers, and sport sandals under the Skechers Sport brand name. In addition, the company offers men?s and women?s casuals, field boots, hikers, and athletic shoes under the Skechers Work brand name; and a range of infants, toddlers, boys, and girls? boots, shoes, and sneakers under the Skechers Kids brand name. Further, its product line includes Skechers Active products, such as casual everyday and sport fusi on sneakers for females; Tone-ups and Tone-ups Fitness products comprising casual and athletic-inspired sandals for women, as well as sneakers; Shape-ups toning footwear for men and women; and Skechers Resistance Runner technical shoes for runners. Skechers U.S.A. markets its products through department and specialty stores, athletic and independent retailers, and boutiques, catalog and Internet retailers, as well as through own e-commerce Website and retail stores. As of February 15, 2011, it operated 105 concept stores, 99 factory outlet stores, and 40 warehouse outlet stores in the United States, as well as 28 concept stores and 16 factory outlets internationally. The company was founded in 1992 and is headquartered in Manhattan Beach, California.
Advisors' Opinion:- [By alicet236]
Skechers USA(SKX): CEO, 10% Owner Robert Greenberg sold 300,000 Shares
CEO, 10% Owner of Skechers USA (SKX) Robert Greenberg sold 300,000 shares on Dec. 19 at an average price of $33.08. Skechers USA was incorporated in California in 1992 and reincorporated in Delaware in 1999. Skechers Usa has a market cap of $1.69 billion; its shares were traded at around $33.23 with a P/E ratio of 37.80 and P/S ratio of 0.90.
- [By Associated Press]
Federal prosecutors and the Securities and Exchange Commission on Thursday filed criminal and civil charges against fired KPMG partner Scott London for conspiracy to commit securities fraud through insider trading. The 24-page affidavit filed in support of the criminal complaint alleges that London, 50, of Agoura Hills, Calif., provided confidential information about KPMG clients Herbalife (NYSE: HLF ) , Skechers USA (NYSE: SKX ) , Deckers Outdoor (NASDAQ: DECK ) , RSC Holdings, and Pacific Capital to Bryan Shaw, a close friend, from late 2010 until last month. Prosecutors allege that Shaw made more than $1.2 million in illicit profits by trading in advance of company announcements on earnings results or mergers.
- [By Pratik Thacker]
Footwear retailer�Skechers (NYSE: SKX ) �recently reported a blockbuster quarter. Results far surpassed the Street's expectations, pushing the stock price north.
- [By vinaysingh]
Footwear retailer Skechers (SKX) recently reported a blockbuster quarter. Results far surpassed the Street's expectations, pushing the stock price north.
Top 5 Clean Energy Stocks For 2014: Medbox Inc (MDBX)
Medbox Inc. (Medbox) offers a machine that dispenses medication to individuals based on biometric identification (fingerprint sample). The machine allows pharmacies, hospitals, doctors' offices, and alternative medicine clinics to manage employee possession of sensitive drugs. The system also allows these clinics to demonstrate that the user visiting the machine is a registered patient and that the patient has a valid and unexpired authorization from a physician to possess and use the medicine dispensed. The Company has national and international presence with offices in Los Angeles, New York, Toronto, London and Tokyo.
Medbox, through its subsidiaries, offers consulting services to the alternative medicine industry, as well as to the mini self-storage market. The Company provides consulting services primarily to individuals and groups seeking to establish new clinics and facilities, often in jurisdictions that have recently passed legislation concerning the availability of alternative medicines, as well as existing jurisdictions, nationwide.
Advisors' Opinion:- [By Bryan Murphy]
When Tranzbyte Corp. (OTCMKTS:ERBB) and Medbox Inc. (OTCMKTS:MDBX) both announced they would be unveiling vending machines to dispense medical marijuana and/or recreational marijuana, fans and supporters of hemp/pot applauded the ease of access, but even some of the most die-hard supporters saw potential problems. Although the machines made by MDBX and ERBB would only dispense marijuana if a strong verification procedure had been successfully performed, there was just something a little un-nerving about an un-manned metal box that - given the right hacking capabilities - could be fooled into giving marijuana to someone who shouldn't have it. Or barring that, the machines (which are admittedly solid and stout) could still be vandalized, broken, or even outright stolen if left unprotected. Those are long shots, granted, but thieves know few bounds.
- [By Ben Levisohn]
But, as the Huffington Post points out, most of the companies that stand to benefit are very small–they make micro caps look big–trade over the counter–good bye liquidity. That includes transaction-processing company MediSwipe (MWIPD), GreenGro Technologies (GRNH) Medbox (MDBX), which makes dispenser for high-risk drugs, and GW Pharmaceuticals (GWPRF).
- [By Peter Graham]
What�� the Catch With Endocan Corp? According to various disclosures, a transaction or transactions of $10k has or will occur to mention Endocan Corp in various investment newsletters. However, Endocan Corp has actually been quiet since early February when the company issued a press release to say that they were ��elighted��that the US Congress and President Obama appear on the verge of approving the first key law to legalize hemp cultivation and advanced research on a federal level (Note: On January 29, 2014, the US House of Representatives approved the "farm bill" that contains a provision for certain cultivation of industrial hemp for research in a number of US states). Endocan Corp also issued ��hareholder guidance��concerning an multi-year, strategic growth agreement with Medicine Dispensing Systems, a wholly owned subsidiary of Medbox Inc (OTCMKTS: MDBX), that was announced on August 20, 2013. Under that agreement, Endocan Corp will be bringing proprietary cannabinoid-based products and formulations to market in state-approved regulatory environments with dispensaries to be branded by the company while using the advanced, patented 'Medbox' dispensing technology. However, the latest financials for Endocan Corp date from the end of March 2013 ��meaning the company has some catching up to do.
Top 5 Clean Energy Stocks For 2014: BanColombia S.A. (CIB)
Bancolombia S.A., a full service financial institution, provides various banking products and services to individual and corporate customers in Colombia, as well as in Panama, El Salvador, Puerto Rico, the Cayman Islands, Peru, Brazil, the United States, and Spain. The company offers savings and checking accounts, fixed term deposits, and investment products; and trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal loans, vehicle loans, payroll loans, and overdrafts. It also provides mortgage banking, factoring, treasury, cash management, foreign currency, and bancassurance and insurance; and asset management and trust services that comprise money market accounts, mutual and pension funds, private equity funds, payment trust, custody services, and corporate trust. In addition, the company offers brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign cu rrencies, fixed income securities, mutual funds, and structured products; and investment banking services, including advising and assisting companies from various economic sectors in project finance, capital markets, capital investments, mergers and acquisitions, restructurings, and corporate lending. Further, it provides financial and operational leases, including cross-border and international leasing services; and pension plan administration services. The company offers its services through a traditional branch network, and sales and customer representatives, as well as through mobile branches, non-banking correspondents, an ATM network, online and computer banking, telephone and mobile phone banking, and electronic funds transfer at point of sale (PACs). As of September 30, 2012, it had 978 branches and 3,703 ATMs. Bancolombia S.A. was founded in 1945 and is headquartered in Medellin, Colombia.
Advisors' Opinion:- [By Lisa Levin]
Bancolombia SA (NYSE: CIB) shares touched a new 52-week low of $47.94. Bancolombia's trailing-twelve-month ROA is 1.45%.
Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets
- [By Matt Smith]
Bancolombia appears attractively priced
Another Colombian company that appears under-valued is the Andean country's largest commercial bank Bancolombia (NYSE: CIB ) . For the year-to-date Bancolombia's share price fell 17% because of a weak second quarter bottom-line. This decline was primarily caused by the bank's net income plunging by 41% year-over-year because of mark-to-market losses caused by the value lost in the bank's securities portfolio.
Top 5 Clean Energy Stocks For 2014: Puma Exploration Inc (PUM)
Puma Exploration Inc. is a mineral exploration company. The Company is engaged in the acquisition and exploration of mining properties with the potential to host base-metal deposits. It is active in Canada and has a portfolio of mining properties. The Company�� properties include Nicholas-Denys, Ann�� Creek property, Turgeon property, Little Stull Lake Property and Ste-Marguerite Property. Its Nicholas-Denys area consists of 239 contiguous claims with a total surface area of 51.94 square kilometers and is 100% owned by the Company. The Company holds 100% mineral rights in Ann�� Creek area, which consists of 117 claims with a total area of 25.44 square kilometers. It holds 71% of the Little Stull Lake property located in the Stull Lake-Edmund Lake volcano-sedimentary belt of the Superior to Manitoba geologic province. The Ste-Marguerite property is located in the Vallee de la Matapedia, in Quebec. Advisors' Opinion:- [By Jonathan Morgan]
HeidelbergCement AG (HEI) added 3.2 percent after JPMorgan Chase & Co. upgraded the shares. Puma SE (PUM) slipped 1.6 percent after Europe�� second-largest sporting-goods maker reported earnings before interest and taxes for the second quarter that missed analysts��estimates.
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