Money Talk: Deltic Timber Kicks Off Second Week Of Earnings Rush

by Talk Business & Politics staff ([email protected]) 119 views 

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DELTIC TIMBER KICKS OFF SECOND WEEK OF EARNINGS RUSH
One of Arkansas’ economic bellwether stocks, Deltic Timber, is expected to post its first quarter earnings report Monday, April 21 after ending fiscal 2014 on a strong note with profits up more than 50% from a year ago.

Shareholders are hoping that the El Dorado-based timber harvester and real estate firm can keep the momentum going for the fiscal period ended March 31. Traditionally, if there is strong growth in the residential housing construction, Deltic’s stock gets a jolt from the increased demand for wood and timber products the company supplies for that sector of the economy.

In the fourth quarter, Deltic President and CEO Ray Dillion said all of the Arkansas company’s “vertically integrated operating assets” produced strong results in the fourth quarter. “In addition, fourth quarter earnings were favorable to the same quarter a year ago, as we closed on the sale of 53 residential lots during the current-year quarter, evidence of continued demand for lots in our real estate developments,” he said.

However, Dillon did put a slight damper on the first quarter by forecasting that the company’s real estate division will only produce two to 5 lot sales in the first three months of the year. But sales are forecasted to gain momentum with 75 to 100 lots sales for the rest of fiscal 2015.

On Friday, Dillon spoke at a press conference to announce the widening to four lanes of Rahling Road, a major thoroughfare in the company’s upscale Chenal Valley development. The expansion, expected to take 9 months to complete, will allow for increased traffic in the growing corridor. It will also lead to more development along Rahling Road. Currently, a project to develop more residential, multi-family, and commercial/office space is underway.

THE RACE TO A TRILLION: WHO WILL BE FIRST?
Over the last few years, there has been much speculation about which American company will be the first to reach the $1 trillion market value threshold.

The three companies that have received the most attention to get to that really, really, really … big number have been Arkansas’ own Wal-Mart Stores, ExxonMobil and Apple. Back in the day before tech companies were all the rage, GE, Citigroup, Bank of America, AT&T, Wal-Mart and tech grandpa Microsoft ignited the first conversations about the trillion dollar threshold. Other companies that have been in that conversation from time-to-time were AOL.com, Chevron, Google, Facebook, and now even Tesla.

Over the past few years, as Wal-Mart’s growth has stalled, ExxonMobil and Apple have been the prohibitive favorites. But as oil and natural gas prices have plummeted in the past year, ExxonMobil is on the outs and Apple has jumped to the front of the pack – for now.

In the past week, USA Today, Fortune.com, CNNMoney.com, CNBC.com, and of course, AppleInsider.com, have made bets on whether or not Apple will be the first to get to the tape. Even, Talk Business & Politics’ Editor-in-Chief Roby Brock and Business Editor Wes Brown got into the discussion this week with the companies they think will reach the mark first.

Apple’s market value today is about $728 billion. To top a trillion, the iPhone owner would have to buy Walmart ($251 billion) and throw in Tyson Foods ($16 billion), Murphy USA ($3.1 billion) and Acxiom Corp. ($1.4 billion) on the cheap.

To get an idea of just how much a trillion dollars is, check out this great animation video by Business Insider.

SEC AND FINRA ISSUE REPORT ON NATIONAL SENIOR INVESTOR INITIATIVE
With the Social Security Administration estimating that each day for the next 15 years, an average of 10,000 Americans will turn 65, the staff of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) issued a report on April 15 to help broker-dealers assess, craft, or refine their policies and procedures for investors as they prepare for and enter into retirement.

The 41-page National Senior Investor Initiative report includes observations and practices that focused on how firms conduct business with senior investors.

According to the most recent U.S. Census Bureau data, more than 13% of those living in the U.S., or more than 41 million people, were 65 or older. By 2040, that number is expected to exceed 79 million, more than twice as many as in the year 2000.