Investors in the U.S. are looking forward to their Independence Day holiday on July 4, but every year, Canadians get a jump on their southern neighbors by celebrating Canada Day on July 1. In honor of Canada's national day, let's take a look northward to learn more about the Canadian stock market and which of its prospects deserve a closer look from U.S. investors.
O Canada!
One reason looking at Canada today makes sense is that for value investors, the market's lagging performance shows that Canadian stocks are out of favor right now. The iShares MSCI Canada ETF (NYSEMKT: EWC ) is down 7% so far this year, compared to about a 13% gain for the U.S. S&P 500.
When you look more closely at the mix of stocks that make up the Canadian market, the explanation for the nation's underperformance gets clearer. Energy and materials make up almost 40% of the MSCI Canada index, with financial stocks coming in at more than 35%. With those two areas dominating Canadian stocks, how those sectors perform largely defines how the overall market does.
Best Financial Companies To Watch In Right Now: Delta Air Lines Inc (DAL)
Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.
Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.
In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.
Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.
The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.
SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.
The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.
The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.
The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.
Advisors' Opinion:- [By Zachary Silver]
Delta impressed analysts with its first-quarter earnings figures, and the airline industry appears to be operating with some semblance of stability recently. Delta, however, has been unable to show that it can generate steady earnings per share growth due to the high variability of its operating expenses. The erratic increases in operating expenses are partially a result of the volatile industry and partially a result of Delta�� management team. For example, Delta recently acquired a refinery in Trainer,�Pennsylvania, last May. The refinery is supposed to save $300 million in fuel costs but has posted losses in two straight quarters. Despite some poor managerial decisions, the outlook of the airline industry looks better compared to the last few years. Investors should WAIT AND SEE if Delta can post steady earnings numbers and profit margins in the next quarter before deciding to initiate a long position.
Best Financial Companies To Watch In Right Now: Xiaoxiao Education Limited(XXL.AX)
Xiaoxiao Education Limited operates as a preschool education institution in China. It has 10 kindergartens and 1 professional comprehensive training school for children. The company?s schools provide parenting education for 0 to 3 year old children, preschool education for 3 to 6 year old children, and professional training programs for 2 to 12 year old children. Xiaoxiao Education Limited has 4,000 enrolled students and 4,000 additional children attending extra-curricular programs out of school hours and during holiday periods, as well as approximately 6,570 students attending short courses at its Hangzhou Binjiang Art Training school. The company was founded in 1996 and is based in Hangzhou, China.
Hot Growth Companies To Buy Right Now: Whiting Petroleum Corporation(WLL)
Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. As of December 31, 2010, its estimated proved reserves were 304.9 million barrels equivalent of oil; and had interests in 9,698 gross productive wells covering approximately 1,115,000 gross developed acres. The company sells its oil and gas to end users, marketers, and other purchasers. Whiting Petroleum Corporation was founded in 1983 and is Denver, Colorado.
Advisors' Opinion:- [By Gordon Wilcox]
Whiting Petroleum (NYSE: WLL) Two months ago, takeover rumors surrounding Whiting swirled after it was reported the company hired Bank of America to explore a possible sale. Those rumors gained steam again last week and it is easy to see why.
Not only does Whiting control over 700,000 Bakken Shale acres, making it the second-largest producer there, it is attractively valued. The shares currently trade for more than 35 percent below the average analyst price target and well below the five-year average price-to-earnings ratio.
Adding to the takeover case are the facts that the bulk of Whiting’s reserves are oil, not gas, and that the company has increased production guidance multiple times this year.
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