Three Picks For Today: Caterpillar Inc. (NYSE:CAT), GlaxoSmithKline plc (ADR) (NYSE:GSK), DryShips Inc. (NASDAQ:DRYS)
Dallas, Texas, 09/24/2014 (ustrademedia) – Caterpillar Inc. (NYSE:CAT) recently stated that during August 2014, its heavy machinery’s sales were down by 10 percent due to weaker results outside of North America. The company’s machinery sales increased 8 percent in North America region whereas the sales dropped in other regions. In a regulatory filing the company said that dealer sales of construction equipment fell by 1 percent for August month as compared to the same month of the previous year while resource-industry equipment sales fell by 33 percent. Caterpillar Inc. (NYSE:CAT)’s revenue from energy and transportation increased 4 percent as compared to the same prior year month.
GlaxoSmithKline plc (ADR) (NYSE:GSK) recently announced that a Chinese court found its local subsidiary ‘guilty’ of bribery charges. The court fined approximately $500 million to the company in one the most controversial scandal in China’s pharmaceutical industry. The court convicted five of GSK’s top executives of bribery-related charges and ordered suspended prison sentences. The pharmaceutical giant is facing several investigations around the world and is likely to be fined in the home country U.K. and the U.S. The company said in an official statement that the illegal activities of GSK China Investment Co. are a ‘clear’ breach of company’s governance and are contrary to the standards expected from its employees.
DryShips Inc. (NASDAQ:DRYS) posted improved financial results for 2Q14 with better than expected top-line growth as compared to the Zacks Consensus Estimate. The company reported strong revenue growth of 57 percent in 2Q14. The company reported $5 billion of order backlog in its Drilling segment at the end of 2Q14. The company has approximately 6,650 spot fleet capacities in 2014, which is expected to grow to 15,821 days in 2015. The growth in spot fleet capacity and new contracts could bolster DryShips’s EBITDA growth going forward. In addition, increasing demand for iron ore and steel production along with lower oil prices may serve as a strong catalyst for the shipping industry.