The Gold Report: Before we get into how to invest in warrants, please tell our readers what a warrant is.
Dudley Baker: Very simply, a warrant is a security that gives the holder the right, but not the obligation, to purchase the underlying common shares at a specific price and includes a specific expiration date.
TGR: How does that differ from a futures contract?
DB: A futures contract refers to the purchase of an actual commodity: gold, silver, soybeans, pork bellies, etc. Warrants also differ from call options. Those are derivative contracts written on a stock, stock index or futures contract.
"Virtually every company in the resource sector has a warrant in its capital structure."
The official definition of warrants states that they are securities, the distinction being here that a warrant is actually issued by the company.
TGR: Why do most investors overlook warrants?
DB: That has been a mystery for decades. Since the early 1980s, when the Chicago Board Options Exchange (CBOE) came into play, investors' interest turned toward stock options�calls and puts. These days, it's all about trading, and for brokers, it's all about commission. Warrants were left out of the investment arena. They're still great opportunities. My mission is to educate and explain the value of stock warrants.
Best Mid Cap Stocks For 2015: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Tyler Crowe]
Talk to your CFO if you experience bloating
This quarter, Nabors, Halliburton (NYSE: HAL ) , and Schlumberger (NYSE: SLB ) have all struggled in their pressure-pumping businesses because of oversupply in the current market. According to Nabors CEO Anthony Petrello, this has led to a very competitive market: "It is not unusual to bid frac jobs against 20 other pumpers, and sometimes as many as 35 show up. We have seen some instances of competitors winning bids with economics that at least from our perspective appear to be near cash break-even." - [By Tyler Crowe and Aimee Duffy]
About 1% of all drilling operations are powered by natural gas. By shifting all drilling operations over to natural gas, the industry could save as much as $1.6 billion a year. The idea has such appeal that both Haliburton (NYSE: HAL ) and Schlumberger (NYSE: SLB ) have said that they would be willing to test sites with Apache for free. In this video, Fool.com contributor Tyler Crowe talks about how the industry could convert to natural-gas-powered operations, and highlights companies to look out for that could benefit from this movement.
- [By Paul Ausick]
Oilfield services giant Schlumberger Ltd. (NYSE: SLB) saw short interest rise 12.5% to 14 million shares, about 1% of Schlumberger�� float. The largest oilfield services company reported fourth-quarter results last week and posted higher EPS and revenues than it did a year ago.
- [By Daniel Gibbs]
The consumption of oil worldwide isn't going�anywhere anytime soon, so the activities of oil companies in these areas must increase as more conventional fields steadily decline. As the oil companies steadily increase their activities in the offshore space, particularly in ultra-deepwater areas, contractors will be forced to construct more rigs. They will thus require equipment produced by National Oilwell Varco and its peers Cameron International (NYSE: CAM ) and Schlumberger (NYSE: SLB ) .
Hot Value Stocks To Watch Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Alex Planes]
Caterpillar (NYSE: CAT ) is to construction and extraction industries as Boeing is to aviation. This 22-year Dow veteran hails from the American heartland town of Peoria, Ill. It's the self-proclaimed world leader in construction and mining equipment, and it's also the world's leading manufacturer of diesel engines and locomotives, as well as natural-gas turbines and engines. While competition is a bit fiercer here than it is in large-body commercial aviation or cutting-edge military hardware, Caterpillar's market dominance should also provide a stable basis for long-term dividend payouts.
- [By Matt Thalman]
The big losers
Earth-moving company Caterpillar (NYSE: CAT ) lost 0.42% of its value over the past few trading days, as precious metals and other natural resources had a terrible Friday. On the last day of the week alone, gold lost 3.13%, sliver declined by 4.89%, and platinum and copper slid 1.51% and 3.45% respectively. Caterpillar is a big player in mining equipment sales, and when the commodity prices of the resources which are mined fall, demand for heavy machinery usually will follow suit. � - [By Matt Thalman]
Now that we've gotten through five months of 2013, it's a good time to review which stocks have performed well for the year, which haven't, and whether you should own any of them. With the Dow Jones Industrial Average (DJINDICES: ^DJI ) having increased by 15.35% year to date, there have clearly been more big winners than big losers this year. With Caterpillar (NYSE: CAT ) being the biggest Dow loser and down only 4.25% in 2013, and Hewlett-Packard (NYSE: HPQ ) being the biggest winner, up 71.37% in 2013, the difference is dramatic. But, let's look at why these stocks have performed the way they have, and whether you should own either of them. My conclusion may shock you!
Hot Value Stocks To Watch Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Arie Goren]
After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP ) has earned a coveted five-star ranking.
- [By Monica Gerson]
Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.
Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.
Hot Value Stocks To Watch Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Jon C. Ogg]
Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.
Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.
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