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Posts Tagged ‘income investment’

A High Yield CEF Trading at a Double Digit Discount

For CEF Investors seeking income, they may want to evaluate Liberty All Star Equity Fund (USA).  This fund has a current distribution rate of 6.97% and still trades at a 10% discount to net asset value (NAV). While the fund is setup for income purposes, it has produced a year-to-date market return of 20% and a one year return on NAV of 29%.  This performance has landed this fund in the top25 CEFs through year to date results.

USA has a 1-year Z statistic of -1.71 while indicates it has a reasonable value compared to past discount of price to NAV.  The fund uses no leverage and no return of capital through distributions.  Here is the recent fund information.

 

 

Fund Style: Large-Cap Core

Investment Managers:
Value Managers:
Matrix Asset Advisors, Inc.
Pzena Investment Management, LLC
Schneider Capital Management   Corporation
Growth Managers:
Cornerstone Capital Management LLC
TCW Investment Management Company

 

Top 20 Holdings at Month-End
(31.9% of equity portfolio)

(Rank   from previous month)

1

Google, Inc., Class A (2)

2.5%

2

QUALCOMM, Inc. (1)

2.4%

3

Schlumberger Ltd. (4)

2.1%

4

JPMorgan Chase & Co. (3)

2.1%

5

Salesforce.com, Inc. (5)

1.8%

6

Amazon.com, Inc. (13)

1.6%

7

Citigroup, Inc. (6)

1.6%

8

Morgan Stanley (9)

1.5%

9

Devon Energy Corp. (11)

1.5%

10

Bank of America Corp. (7)

1.5%

11

Hewlett-Packard Co. (17)

1.5%

12

MetLife, Inc. (8)

1.4%

13

SunTrust Banks, Inc. (12)

1.4%

14

Microsoft Corp. (14)

1.4%

15

American International Group, Inc.   (16)

1.4%

16

Visa, Inc., Class A (15)

1.3%

17

Starbucks Corp. (10)

1.3%

18

Chesapeake Energy Corp. (18)

1.3%

19

Precision Castparts Corp. (22)

1.2%

20

State Street Corp. (20)

1.1%

Holdings are subject to change.

 

Monthly Performance
Performance

NAV

Market   Price

Discount

Beginning of month value

$6.20

$5.41

12.7%

Distributions (Ex-Date October 30)

$0.10

$0.10

End of month value

$6.37

$5.72

10.2%

Performance for month

4.54%

7.58%

Performance year-to-date

27.03%

27.94%

The net asset value (NAV) of a closed-end   fund is the market value of the underlying investments (i.e., stocks and   bonds) in the Fund’s portfolio, minus liabilities, divided by the total   number of Fund shares outstanding. However, the Fund also has a market price;   the value at which it trades on an exchange. If the market price is above the   NAV the Fund is trading at a premium. If the market price is below the NAV   the Fund is trading at a discount.

Returns for the Fund are total returns, which include dividends, after   deducting Fund expenses. The Fund’s performance is calculated assuming that a   shareholder reinvested all distributions and exercised all primary rights in   the Fund’s rights offerings. Past performance cannot predict future   investment results.

Performance will fluctuate with changes in market conditions. Current   performance may be lower or higher than the performance data shown.   Performance information shown does not reflect the deduction of taxes that   shareholders would pay on Fund distributions or the sale of Fund shares. Shareholders   must be willing to tolerate significant fluctuations in the value of their   investment. An investment in the Fund involves risk, including loss of   principal.

 

Net Assets at Month-End   ($millions)
Total $1,111.6
Equities $1,090.0
Percent Invested 98.1%
Sector   Breakdown (% of equity portfolio)*
Financials 25.2%
Information   Technology 18.9%
Consumer   Discretionary 15.6%
Energy 15.0%
Health Care 10.2%
Industrials 7.3%
Consumer   Staples 4.9%
Materials 2.3%
Utilities 0.6%
Total Market   Value 100.0%
*Based on   Standard & Poor’s and MSCI Barra Global Industry Classification Standard   (GICS).

 

Order Some Special Dividends from these Stocks

Saratoga Investment Corp. (NYSE: SAR) declared a special dividend of $2.65 per share.  The dividend will be payable on December 27, 2013, to stockholders of record on November 13, 2013, with an ex-dividend date of November 8, 2013.  The annual yield on the dividend is 13.9 percent.

The dividend will be paid in cash or shares of the Company’s common stock at the election of the shareholders, although the total amount of cash to be distributed to all shareholders will be limited to approximately 20% of the total dividend to be paid to all shareholders. The remainder of the dividend (approximately 80%) will be paid in the form of shares of the Company’s common stock. This dividend is being made in accordance with certain applicable Treasury regulations and private letter rulings on cash/stock dividends issued by the IRS over the years that allow a publicly-traded regulated investment company to satisfy its distribution requirements from a distribution paid partly in common stock provided that at least 20% of the distribution is payable in cash and certain other requirements are satisfied. The dividend includes a carry-over balance of $3.9 million from the Company’s fiscal year 2013 taxable income and a significant portion of the Company’s fiscal year 2014 estimated taxable income.

Cohen & Steers, Inc. (NYSE: CNS) declared a special dividend of $1.00 per share. The dividend will be payable on December 20, 2013, to stockholders of record on December 2, 2013. The annual yield on the dividend is 2.6 percent.

Wynn Resorts Ltd (NASDAQ: WYNN) declared a special dividend of $3.00 per share.  The dividend will be payable on December 6, 2013, to stockholders of record on November 20, 2013, with an ex-dividend date of November 18, 2013.  The annual yield on the dividend is 1.8 percent.

Pfizer offers a Total Yield Stock Play with an Increasing Dividend Payout

While income investors constantly seek out stocks with growing dividend yields, they can also benefit from share buybacks.  The share buybacks present an opportunity for investors to get capital gains in addition to current income.  Currently, 80% of S&P 500 companies are buying back shares. Combine this with dividend yield and you can get a total yield of greater than 10% in 2014.  We are presenting a series of stocks worth a look.

Pfizer (PFE) has a projected share buyback yield of 14% and a current dividend yield of 3.49%.  This provides investor a potential for a total yield of 18.2%.  The stock has a 12 month price target of $33.

Investors were pleased to hear that the company intends to increase its dividend payout ratio to 40% (from 33%) by the end of 2013. The company returned about $15 billion to shareholders in the form of dividends and share buybacks in 2012. Pfizer intends to use the proceeds from the sale of the Nutrition business on additional share repurchases and other value creating opportunities.

On 7/30/2013, the Board of Directors authorized a new$10 billion share repurchase program to be utilized over time. This new program is in addition to the$3.1 billion of authorization currently remaining under the previous share repurchase program.

Pfizer posted second quarter 2013 earnings of $0.56 per share, 5% below the year-ago earnings. Revenues, which fell 7% to $12.9 billion, missed the Consensus Estimate of $13.1 billion. Revenue growth was impacted by the loss of exclusivity of certain products and purchasing patterns for Prevnar/Prevenar in some markets.  Pfizer maintained its outlook for 2013. Revenues will be hit by genericization and the expiration of a few co-promotion agreements. The company s pipeline needs to deliver given the Lipitor loss of exclusivity and the upcoming loss of exclusivity on additional products in the next few years.

We expect revenues in 2013 to decline about 12%, primarily reflecting the classification of the animal health business (divested in June 2013) as a discontinued operation. We also project lower sales of established drugs, largely due to ongoing generic erosion in off-patent Lipitor, Detrol and Xalatan, as well as the expiration of certain co-promotion agreements.  However, we project continued gains in Lyrica muscle pain therapy and Celebrex arthritis treatment. We also forecast good growth from emerging markets, new oncology agents such as Xalkori and Inlyta, and from the recent launches of Xeljanz and Eliquis.

In July 2013, PFE announced plans to internally separate into three distinct business segments, two innovative units and one value business.  The first innovative unit will comprise drugs with patent exclusivities beyond 2015. The second innovative segment will include vaccines, oncology agents, and consumer healthcare.  The third value unit will consist of mature drugs, and joint venture products. We believe the new structure should provide investors greater transparency of PFE’s different businesses, and represents a prelude for a potential eventual split-up of Pfizer into three separate firms.

Here is a Nice Dividend Capture for July

For investors looking to book a solid dividend, Himax Technology (NASDAQ: HIMX) is the place to be in July.  Himax Technology has a current dividend yield of 4.78%.  On June 17, 2013 the board of directors approved a dividend of $0.25 per share.  The dividend is payable on July 31, 2013 to shareholders of record on July 19, 2013.

The stock has recently pulled back to $5.22 and presents a nice dividend capture strategy as HIMX pays an annual dividend.  Himax has an equity summary score of 9.8 out of 10 for a VERY Bullish outlook.  The stock has a 12-month price target of $8.40.  The stock is up 188% in the past year.

HIMX is growing solidly, and has shown this by beating Q1 earnings estimates, despite the fact that last quarter was the slow quarter for most Asian companies.  Himax also expanded its profit margin by 5%. This stock’s growth should only continue with the massive amount of news catalysts on the horizon.

Himax recently announced the closing of the previously announced underwritten offering by selling shareholder Innolux Corporation (“Innolux”) of 25,399,753 American Depositary Shares (“ADSs”), including 3,313,011 ADSs sold pursuant to the underwriters’ over-allotment option. The underwriters have exercised in full their over-allotment option to purchase the 3,313,011 ADSs. Immediately following the closing, Innolux has ceased to be the Company’s shareholder. The Company did not sell any ADSs in the offering and did not receive any proceeds from the offering. Innolux’s sale of the ADSs will not result in dilution of the Company’s outstanding shares.

Himax Technologies, Inc. (HIMX) is a fabless semiconductor solution provider dedicated to display imaging processing technologies. Himax’s main products include display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and many other consumer electronics devices.  Additionally, Himax designs and provides controllers for touch sensor displays, LCOS micro-displays used in palm-size projectors and head-mounted displays, LED driver ICs, power management ICs, scaler products for monitors and projectors, tailor-made video processing IC solutions and silicon IPs. The Company also offers digital camera solutions, including CMOS image sensors and wafer level optics, which are used in a wide variety of applications such as mobile phone, tablet, laptop, TV, PC camera, automobile, security and medical devices. Headquartered in Tainan, Taiwan, the Company has offices in Hsinchu and Taipei, Taiwan and in China, Korea, Japan and the US.

Look to this Shipper for High Yield

Investors looking for a high yield stock may want to check out Ship Finance International Ltd (NYSE: SFL).  The stock boasts a 9.59% dividend yield with EPS projected to grow 16% in 2014.  With 2 analysts upgrading the stock, SFL looks like a potential high yield stock that can sustain its EPS and dividend.

On February 25, Ship Finance International Ltd.’s fourth-quarter earnings jumped 69% as the tanker company benefited from a cash sweep agreement and a one-time gain from a sale.  Ship Finance, which owns and charters out large vessels that transport crude oil, in recent years has been diversifying its assets to include areas such as dry bulk and container ships. Though Ship Finance had seen a soft tanker market, the company said that the crude oil tanker market remained relatively firm.

Ship Finance is actively reviewing investment opportunities across its main market segments, while also closely monitoring the performance of its chartering counterparties in light of the “prevailing soft spot-market in some of the shipping segments.”  Ship Finance reported a profit of $51.1 million, or 60 cents a share, versus $ 30.2 million, or 38 cents a share, a year earlier. The latest period included $ 12.1 million from a cash sweep agreement with Frontline Ltd. and a $21.5 million gain on the sale of vessels.

Total operating revenue rose 2.1% to $77.7 million.  Analysts polled by Thomson Reuters most recently forecast earnings of 33 cents on revenue of $89.9 million.

First Call consensus has Ship Finance earning $1.71 in FY 2014 which is 16% above 2013 EPS.  First Call has a buy rating on the stock with a 2.2 rating.  The stock trades at a PE of 7 and 1.4 times book value.  Ship Finance has a 12-month price target of $18.70.

On April 20, 2013 Columbine Capital Services, Inc. upgraded SHIP FINANCE INTERNATIONAL LTD from NEUTRAL to FAVORABLE.

On April 12, 2013 Ford Equity Research upgraded SHIP FINANCE INTERNATIONAL LTD from HOLD to BUY.

This Lodging Stock is a Stable Growth and Income Play

RLJ Lodging Trust (RLJ) is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels.  The Company’s portfolio consists of 145 hotels in 21 states and theDistrict of Columbia, with a total of more than 21,600 rooms.  RLJ is a great growth and income stock as it is projected to increase EPS by 19% in 2013 while paying a steady 3.6% dividend yield.

The Company recently announced that it acquired the historicHumble Oil Buildingcomplex in downtownHouston, for a purchase price of$79.5 million, or approximately$151,000per key based on a combined forward room count of 528 keys.

The Humble Oil Buildingis a three-tower complex that occupies an entire city block in downtownHouston. The complex consists of an 82-unit apartment tower that will be converted to a 166-room SpringHill Suites and two existing hotels, the existing 191-roomCourtyard Houston Downtown Convention Center(“the Courtyard”) and the 171-roomResidence Inn Houston Downtown Convention Center(“the Residence Inn”). The purchase price represents a forward capitalization rate of approximately 10.1% for the Courtyard and 9.5% for theResidence Innbased on each hotel’s projected 2013 net operating income and applicable purchase price allocation. The Company purchased this portfolio of assets with its revolving credit facility.

“Our ability to execute this off-market transaction required the expertise, experience, and relationships that are unique to RLJ,” commentedThomas J. Baltimore, Jr., President and Chief Executive Officer. “Acquiring theHumble Oil Buildingcomplex represents a value-add opportunity. Both existing hotels have notable upside potential and our extensive experience managing complex renovations will enable us to deliver another conversion property that will help drive economies of scale.”

Adjusted FFO for the three months ended December 31, 2012, increased $13.4 million to $50.7 million, representing a 35.9% increase over the comparable period in 2011. For the twelve months ended December 31, 2012, Adjusted FFO increased $43.5 million to $185.6 million, representing a 30.6% increase over the comparable period in 2011. Adjusted FFO per diluted share and unit for the three and twelve months ended December 31, 2012, was $0.48 and $1.74, respectively, based on the Company’s diluted weighted-average shares and units outstanding of 106.8 million and 106.6 million for each period, respectively.

Net income attributable to common shareholders for the three months ended December 31, 2012, was $13.7 million, compared to a loss of $1.3 million in the comparable period in 2011. For the twelve months ended December 31, 2012, net income attributable to common shareholders was$41.3 million, compared to$11.3 million for the comparable period in 2011.

First Call consensus has the company producing $2.08 in EPS in 2013 which is a 19% increase from the prior year.  EPS are projected to be $2.34 in 2014 which is a nice 12% increase from 2013.  First Call Analyst currently have a buy rating with a 2.0 rating.  RLJ has an equity summary score of 7.2 out of 10 for a Bullish outlook.  The stock is currently trading near $22.50, 10.8 times 2013 EPS and 9.6 times 2014 EPS.

This Stocks offers a 4% Yield and 13% Upside

AbbVie (ABBV) is a global research-based pharmaceuticals business that emerged as a separate entity following its spin-off from Abbott Laboratories at the start of 2013.  AbbVie is worth a look for the growth and income investors as it has a 4.2% dividend yield and a price target with 13% upside potential.

AbbVie’s most important product is Humira, an injectable biologic TNF (tumor necrosis factor) blocker treatment for rheumatoid arthritis (RA) and similar conditions, with sales of $9.3 billion in 2012, up from $7.9 billion in 2011.We estimate that Humira accounts for more than half of the global prescription pharmaceuticals market for rheumatoid arthritis. Besides moderate to severe RA in adults, Humira is also approved for eight other uses, including juvenile idiopathic arthritis, plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, ulcerative colitis, Crohn’s disease in adults, juvenile Crohn’s disease and axial spondyloarthritis.

AbbVie’s strategic objectives include expanding Humira’s sales through greater penetration of emerging markets, increased emphasis on earlier diagnosis of autoimmune patients, and new indications. ABBV also plans to advance its R&D pipeline through internal development or through collaborations and licensing agreements. From 2013 through 2016, the company plans to launch five significant new products. The company also plans to maximize efficiency by streamlining the supply chain and optimizing residual value when products near the end of exclusivity.

In January 2013, ABT said that global sales of branded drugs that now belong to ABBV rose 7.4% to$5.14 billionin Q4, topping the$4.8 billionestimate of Wells Fargo analysts. Sales of Humira, ABBV’s leading product, increased 23% to$2.68 billion, about$200 millionabove Wells Fargo’s estimate.

The company estimated 2013 adjusted earnings at $3.03 to $3.13 a share, while analysts polled by Thomson Reuters expect $3.08 a share. Abbott had previously said fourth-quarter sales of Humira jumped 23% to $2.68 billion.  AbbVie said it expects the drug’s sales to increase by a low double-digit percentage in 2013.  The company also said it plans to initiate several Phase III programs this year, including atrasentan for diabetic kidney disease and ABT-199 in chronic lymphocytic leukemia.

The stock is reasonably priced with a current PE of 11.6 compared to an industry PE of 19.7.  AbbVie has a 12-month target price of $43 applies a modest premium to peers P/E of 13.4X to our $3.20 EPS estimate for 2014. The $1.60 annual dividend presently yields 4.2%.We think ABBV’s $7.2 billion cash position enables it to do accretive acquisitions and stock repurchases.  ABBV has an equity summary score of 9.9 out of 10 for a Very Bullish outlook.

The board of directors of AbbVie declared a quarterly cash dividend and also authorized a share repurchase program of up to $1.5 billion of the Company’s outstanding common stock.  The cash dividend of $0.40 per share is payable May 15, 2013 to stockholders of record at the close of business on April 15, 2013.  AbbVie was named to the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.  AbbVie was included as a result of the Index’s change in its treatment of spin-off companies.

This Company is Broadcasting Significant Growth and Income in the Next Year

Television broadcasting company Sinclair Broadcasting Group (SBGI) is experiencing a significant amount of success as it continues to grow its broadcasting network through acquisitions and strategic partnerships.  The Company is trading near 52 week highs following news the company has reached an agreement with DirecTV on a new retransmission consent agreement. It has also entered into a short-term extension of its existing agreement. As a result, DirecTV will continue to carry all of Sinclair’s stations.  This comes a day after saying it will pay$370 million to buy 18 stations from Barrington Broadcasting Group, and comes only days after the purchase of Cox Media Stations.

While the stock is up 54% in the past year, Sinclair Broadcasting is trading at a price earnings (PE) ratio of 10 compared to an industry PE of 17.5.  This is a cheap stock considering First Call is projecting a 78% increase in EPS next year.  The First Call consensus is for $2.35 in EPS next year.  Based on the current PE of 10, this indicates a target stock price of $23.50, a 30% increase from current levels.  First Call consensus is a strong buy with a 2.0 rating.

Sinclair Broadcasting has a dividend yield of 3.33%.  The company increased its dividend 25% in the past year.  On December 14, 2012, the Company paid a$1.00per share special dividend and a$0.15per share quarterly cash dividend to its shareholders. I expect the dividend to increase in the future as SBGI continues to increase EPS.

Sinclair Broadcasting Group had an increase in 4th quarter 2012 earnings of 161% and full year 2012 increase in earnings per share of 89%.

The Company reported diluted earnings per common share of$0.73for the three-month period ended December 31, 2012versus diluted earnings per common share of$0.28in the prior year period.

Net broadcast revenues from continuing operations were$920.6 million for the twelve months ended December 31, 2012, an increase of 42.1% versus the prior year period result of$648.0 million.  The Company had operating income of$329.3 million in the twelve-month period, as compared to operating income of$225.6 million in the prior year period.  Net income attributable to the Company was$144.7 million in the twelve-month period, versus net income of$75.8 million in the prior year period.

The Company reported diluted earnings per common share of$1.78in the twelve-month period ended December 31, 2012versus diluted earnings per common share of$0.94in the prior year period.

The Company expects first quarter 2013 station net broadcast revenues from continuing operations, before barter, to be approximately$251.9 million to $254.9 million, up 32.0% to 33.5% as compared to first quarter 2012 results of$190.9 million.  This assumes approximately$0.4 millionand$2.5 million in political and Super Bowl revenues, respectively, in the first quarter 2013, as compared to$3.6 millionand$0.1 million in the first quarter 2012.  The 2013 first quarter net broadcast revenue estimates assume$62.6 million related to the Acquisitions.

CSWC Announces $2.75 Special Dividend – Stock Trades at 49% Discount to NAV

The Capital Southwest Corporation (CSWC) board of directors has declared a cash dividend in the amount of $2.75 per share of common stock. This special dividend is a yield of 2.5% based on the current stock price. The dividend is payable on March 28, 2013 to shareholders of record on March 15, 2013.

Capital Southwest Corporation is a public investment firm specializing in venture capital and private equity investments in small and medium sized businesses.  CSWC has a market cap of $421 million and is cheaply valued with a trailing PE of only 6 compared to an industry average PE of 20.

Capital Southwest Corporation reported total net assets at December 31, 2012 of $628,089,815 equivalent to $165.36 per share.  CSWC shares are currently trading at $111 which is a 49% discount to the NAV at year end. 

The market clearly misunderstands this stock as it should not be trading at such a discount to NAV.  In addition, CSWC has NO long-term debt on its books.  CSWC has an equity summary score of 7.2 out of 10 for a Bullish outlook.

Assuming reinvestment of all dividends and tax credits on retained long-term capital gains, the December 31, 2012net asset value was 18.4% greater than the March 31, 2012net asset value of $167.45per share and 34.9% above the December 31, 2011net asset value of $146.95per share. It is important to note that during the nine months ended December 31, 2012, CSWC distributed $66,825,782 or $17.59 per share of capital gains dividends and $3,025,032 or $0.80 per share in ordinary dividends to our shareholders.

On January 30, 2013 Capital Southwest Corporation announced that Capital Southwest Venture Corporation, a wholly-owned subsidiary of CSWC sold its 9,317,310 shares of common stock of Heelys, Inc. to Sequential Brands Group, Inc. pursuant to the merger of Heelys into a wholly-owned subsidiary of Sequential.  The Merger closed on January 24, 2013.

The sale of CSVC’s 9,317,310 shares of Heelys’ common stock generated cash proceeds of $20,963,948 and a capital gain of $20,861,458 or $5.49 per share, based on the 3,800,393 shares of issued and outstanding shares of CSWC. The CSWC Board has approved a partial distribution of the capital gain proceeds, in the amount of $2.75 per share or approximately $10,451,000.

Diamond Offshore Declares Special Dividend

Diamond Offshore Drilling Inc (DO), the world’s fourth-biggest offshore driller by market value, reported a stronger-than-expected quarterly profit as contract drilling expenses fell.  The company rewarded investors with a special dividend payment.

On February 5, 2013 the board of directors at Diamond Offshore Drilling Inc (DO) approved a dividend of $0.75 per share and a quarterly dividend of $0.125 per share.  The combined special and quarterly dividends are a one-time yield of 1.2%.  Both dividends are payable on March 1, 2013 to shareholders of record on February 19, 2013.

Diamond Offshore Drilling reported net income for the fourth quarter of 2012 of $156 million, or $1.12 per share on a diluted basis, compared with net income of $188 million, or $1.36 per share on a diluted basis, in the same period a year earlier. Revenues in the fourth quarter of 2012 were $751 million, compared with revenues of $748 million in the prior-year quarter.

For the full-year 2012, the Company reported net income of$720 million, or$5.18per share on a diluted basis, compared with net income of$963 million, or$6.92per share on a diluted basis, in 2011. Revenues for the full-year 2012 were$2.987 billion, compared with$3.322 billionin 2011.

Diamond Offshore has great financial discipline, which is one of the best in the industry.  The company is also looking to increase its footprint in the emerging markets (like Brazil and West Africa) to reap benefits from the recently discovered deepwater fields. Further, improving activity in North Sea positions the company well. Diamond Offshore exhibits long-term earnings growth visibility based on its strong leverage to the offshore deepwater drilling market.

Diamond is expanding its ultra deepwater leverage through the construction of three drillships.  The company placed an order for its fourth ultra-deepwater drillship Ocean BlackLion, which is believed to be valuably utilized in the ultra-deepwater markets.  It is due for delivery by the fourth quarter of 2014. The increasing demand in regions of West Africa and North Sea is likely to benefit the existing fleet along with the newbuilds as they may be contracted at higher dayrates.

Diamond Offshore Drilling added 13 new contracts during the third quarter that augmented the Company’s revenue immensely and boosted contract drilling backlog by 12.1 rig-years.  This will provide sound earnings and cash flow visibility for years to come and be further strengthened by the company’s increasing focus on Brazil and the North Sea.  A combination of upgrades and new construction has been a long-term strategy and has allowed it to become a major in the industry.

Diamond Offshore Drilling has a 12-month price target of $80.

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