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April 21, 2014

Andrew Silow-Carroll: Passoverkill? Suggestions to make next year's seders even more culturally sensitive

Sara Israelsen Hartley: Seeking the Divine: An ancient connection in a new context

Christine M. Flowers: Priest's execution in Syria should be call to action

Courtnie Erickson: How to help kids accept the poor decisions of others

Lizette Borreli: A Glass Of Milk A Day Keeps Knee Arthritis At Bay

Lizette Borreli: 5 Health Conditions Your Breath Knows Before You Do

The Kosher Gourmet by Betty Rosbottom Coconut Walnut Bars' golden brown morsels are a beautifully balanced delectable delight

April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review

9 Companies Poised to Ride the Energy Boom

By Kathy Kristof





Attractive shale-boom beneficiaries that aren't directly involved in the production of energy


JewishWorldReview.com | Surging oil and gas production, particularly from shale basins that are just starting to deliver marketable fuel, may be better for ancillary companies servicing the oil giants than for the oil and gas companies themselves.

Though industry giants such as ExxonMobil, Chevron and British Petroleum must cope with the vagaries of commodity prices in a market rich in supply, a vast array of firms providing parts, pipelines and all sorts of services, including ways to get the petrochemicals out of the ground and to customers more safely and cheaply, are seeing rapid earnings growth.

"A lot of the people who got rich during the gold rush weren't mining gold. They were selling picks and shovels," says Sam Carr, an analyst with SNL Financial, a data and research company. "You're seeing the same thing here."

We've identified 9 attractive shale-boom beneficiaries that aren't directly involved in the production of energy.

TransCanada Corp.

Headquarters: Calgary, Alberta
52-week price range: $42.21-$49.65
Price-earnings ratio: 18
Market capitalization: $31.4 billion
Projected earnings growth: 12.6%

Not surprisingly, pipeline operators, such as TransCanada (TRP), have been going gangbusters. However TransCanada's shares have struggled over the past year because of delays in approving the company's controversial Keystone pipeline. Juan Plessis, an analyst at Canaccord Genuity, thinks the pipeline will eventually be approved, but it may not be operational until 2016.

Meanwhile, the company has booked billions in other projects, including the $12 billion Energy East pipeline that doesn't require a presidential go-ahead. Plessis thinks the stock should sell for $53 a share within a year.

Schlumberger

Headquarters: Houston
52-week price range: $69.08-$94.91
Price-earnings ratio: 16
Market capitalization: $119.4 billion
Projected earnings growth: 18.5%

Revenues at Schlumberger (SLB), the world's largest energy-services company providing everything from drill bits to engineering, testing and project management, rose 8% last year, mostly due to projects in China, India, Indonesia, Qatar, Russia and French Guiana. However, Schlumberger (pronounced shlum-burr-ZHAY) also won contracts to speed the fracking process for clients in Arkansas and to do seismic monitoring in North Dakota's Bakken shale field.

Profits are growing more briskly. Earnings soared 23% in 2013, and analysts see them expanding 18% to 20% annually over the next two years. The stock's P/E ratio is modest in light of expected profit growth.

Halliburton

Headquarters: Houston
52-week price range: $36.77-$57.42
Price-earnings ratio: 14
Market capitalization: $47.1 billion
Projected earnings growth: 22.0%

Halliburton (HAL) provides many of the same services as Schlumberger, but it has a stronger presence in the Americas--North and South. That's been a challenge lately because of sluggish economies in Latin America. In 2013, revenues were up just 3%, while earnings declined 17%. Still, UBS analyst Angie Sedita considers Halliburton a long-term buy, partly because of valuation. Moreover, analysts expect earnings to climb 26% this year. Sedita thinks the shares will sell for $70 in a year.

Alerus Financial Group

Headquarters: Grand Forks, N.D.
52-week price range: $33.50-$51.63
Price-earnings ratio: 11*
Market capitalization: $226.6 million
Projected earnings growth: NA

Workers are migrating to North Dakota by the tens of thousands to fill fracking jobs. That's creating booming business for the state's banks, many of which are experiencing double-digit-percentage growth in both deposits and loans, says Carr.


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Although the banks headquartered in North Dakota tend to be tiny and privately owned, Alerus Financial Group (ALRS) is an exception. Its stock trades infrequently on the over-the-counter bulletin board. The bank, with $1.4 billion in assets, says refinancing activity dried up in the last half of 2013 due to rising interest rates.

But Alerus still managed to earn record profits of $20.3 million, or $4.42 per share, up 13.4% from 2012. The stock sells for about 1.8 times tangible book value -- nearly the same as the average price-to-tangible-book-value ratio for the typical small bank. But few banks are generating double-digit-percentage earnings growth like Alerus.

* Based on 2013 earnings.

Wells Fargo

Headquarters: San Francisco
52-week price range: $36.19-$48.48
Price-earnings ratio: 12
Market capitalization: $253.1 billion
Projected earnings growth rate: 10.4%

The nation's largest bank by stock-market value, Wells Fargo (WFC) has more deposits in North Dakota than any other institution, Carr says. Wells is the largest mortgage underwriter in North Dakota, with a 14% share of the market. With building permits soaring--and housing so tight that apartment rents are also soaring--the bank is well positioned to tap into the state's economic gusher.

Wells is widely considered to be among the nation's best-managed banks, so its shares rarely sell cheaply. They're at a slight premium to the average price-earnings ratio for big banks, but Wells's high quality and a dividend yield of 2.5% make the stock attractive for long-term investors.

Fluor Corp.

Headquarters: Irving, Tex.
52-week price range: $53.50-$83.93
Price-earnings ratio: 17
Market capitalization: $1.2 billion
Projected earnings growth rate: 13.1%

Fluor Corp. (FLR), which designs and constructs industrial projects for the government, oil and gas companies and others, has been suffering lately because its mining and metals division is in the midst of an industrywide slump.

However, in January it won a contract to participate in a $15 billion venture to build a liquefied natural gas facility in Kitimat, Canada, that will export to energy-starved Asian markets. Sterne Agee analyst Michael Dudas thinks that project alone could boost Fluor's backlog by 10% and provides a good reason to buy the stock.

Dudas predicts that Fluor will outperform the market in 2014, largely as the result of continuing growth in the oil, gas and petrochemical markets.

Quanta Services

Headquarters: Houston
52-week price range: $25.26-$36.90
Price-earnings ratio: 20
Market capitalization: $7.7 billion
Projected earnings growth rate: 10.6%

Quanta (PWR) attributes more than two-thirds of its revenue to electric-power projects, but recently told analysts that expanding into oil and gas infrastructure will be key to driving growth over the next five years.

Why? Fracking in new regions is producing more oil and gas than can be efficiently moved by rail, which increases demand for pipelines. Pipeline capacity is already tight and will become "severely strained" over the next few years, say Quanta executives. That's an opportunity for Quanta, which, among other things, builds, inspects and repairs pipelines. UBS analyst Steven Fisher says Quanta's future is bright and its stock is a steal.

Union Pacific Corp.

Headquarters: Omaha, Neb.
52-week price range: $135.75-$189.41
Price-earnings ratio: 17
Market capitalization: $85.3 billion
Projected earnings growth rate: 13.6%

Because the rich energy finds in new regions made accessible by fracking, such as the Appalachian Basin and the Northwest, aren't yet served by pipelines, producers have turned to railroads to bring the fuel to market. Over time, pipelines will be built and railroads will give up a good portion of this business.

But AllianceBernstein analyst David Vernon believes Union Pacific (UNP) will continue to benefit from the energy boom because the shale basins will continue to need rocks and sand for fracking, drilling chemicals and steel to build wells. The economic vitality that drilling brings is also likely to create demand for appliances, lumber for homes, and a wide array of other industrial materials that can't be squeezed into pipelines.

"We see good growth from the energy renaissance and think you are going to see Union Pacific compounding shareholder values," says Vernon. "As a core transportation holding, it's a great stock."

Greenbrier Cos.

Headquarters: Lake Oswego, Ore.
52-week price range: $20.05-$47.15
Price-earnings ratio: 16*
Market capitalization: $1.3 billion
Projected earnings growth rate: 10.0%

Moving fuel and industrial products by rail has also goosed demand for the containers to hold those products, and that's benefiting container manufacturing companies. Greenbrier (GBX) announced in March that it had received new orders for 5,600 rail cars valued at $460 million. New railroad safety measures are likely to fuel even more growth, says CEO William Furman. Why? Recent accidents have spurred railroads and the Department of Transportation to agree to a series of safety measures, including reducing speeds in populated areas. That translates to slower turnaround times for shipping energy and means greater demand for containers to move the same number of products.

Restructuring expenses left the Lake Oswego, Ore., manufacturer in the red during the fiscal year that ended last August 31. The company is expected to be solidly in the black in the current fiscal year, and the stock has more than doubled since last July to reflect the improved outlook. The stock is not especially cheap, but put Greenbrier on your watch list, and take advantage of any price drop during market pullbacks.

* Based on estimated earnings for the four quarters through November.

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Kathy Kristof is a Contributing Editor at Kiplinger's Personal Finance.



All contents copyright 2013 The Kiplinger Washington Editors Distributed by Tribune Media Services. All rights reserved.

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