Monthly Archives: December 2016

investment newsletters

Baird’s Mark Altschwager and Drew Northcontend that JC Penney’s (JCP) recovery is still intact despite its weaker-than-expected third-quarter earnings. They explain why:

JC Penney reported weaker-than-expected Q3 comps and gross margin but reaffirmed longer-term growth targets (sales expected to accelerate in Q4). Were encouraged by tight cost controls amid the sluggish growth backdrop (multiple paths to targets) but acknowledge well need to see comps regain momentum to support longer-term goals (MSD% SG&A cuts not sustainable). Overall, we continue to believe the pieces are in place for this to happen (appliances, Sephora, private brands; moderating apparel headwinds), setting up attractive risk/reward as this self-help recovery story unfold…

Outlook unchanged, positive risk/reward near ~$9. While Q3 was more challenging than anticipated, we remain constructive on shares as JC Peneys self-help initiatives ramp (sales, margin, balance sheet improvements) under a new and energized leadership team. Choppy results have fueled stock volatility but near $9 we see attractive risk/reward for patient & nimble investors. Our $13 price target is based on ~5.8x our NTM +1 EBITDA, below current levels (6.5x our lowered estimate) and ~in line with the department store group (~5.9x).

investment newsletters: Progenics Pharmaceuticals Inc.(PGNX)

Advisors’ Opinion:

  • [By Ben Levisohn]

    After meeting with the senior management team of Progenics (PGNX) , Valeant’s partner for oral Relistor, we continue to think that this drug would be a good addition to Valeant’s GI (gastrointestinal) franchise. The PDUFA date for oral Relistor is 7/19/16. AlthoughValeant is leading interactions with the FDA, Progenics is highly confident regarding an approval in July based on its discussions with Valeant. Progenics believes that oral Relistor could be a $1B+ opportunity for Valeant, even with the recent decrease in opioid usage. For context, we estimate ’16 sales of $9.9B for Valeant. An approval for oral Relistor would also help remind the Street that Valeant’s brand drug pipeline is underappreciated, in our view. We think pipeline advancements for brand drugs could drive multiple expansion forValeant shares (on P/E).

  • [By Lisa Levin]

    Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX) shares shot up 29 percent to $6.37 after announcing the FDA approval of RELISTOR tablets for the treatment of opioid-induced constipation in adults with chronic non-cancer pain.

investment newsletters: Fogo de Chao, Inc.(FOGO)

Advisors’ Opinion:

  • [By Monica Gerson]

    Fogo De Chao Inc (NASDAQ: FOGO) is expected to post its quarterly earnings at $0.28 per share on revenue of $76.80 million.

    Constellium NV (NYSE: CSTM) is estimated to report its quarterly earnings at $0.06 per share on revenue of $1.18 billion.

investment newsletters: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Diane Alter]

    After Wednesday’s close, Tesla Motors Inc. (Nasdaq: TSLA) reported its first quarterly net profit in more than three years. The company also said it could book a profit again in Q4 2016.

  • [By Ben Levisohn]

    Tesla Motors (TSLA) not only beat earnings forecasts when it reported on Wednesday night, but offered very, let’s call it ambitious production goals. That will require lots of cash–something that makes Barclays analyst Brian Johnson and team wary. They explain why:

    Associated Press

    With its ambitious plans that will require an incremental fundraising (as we predicted), we view Tesla as more of a cash-hungry start-up unicorn than a traditional public company. And we are seeing more talk that start-ups are facing ‘down rounds’ as they seek growth capital. With Tesla likely to come to the market for a capital raise near-term, its worth asking whether it deserves an up round or a down round. Recall the prior offering was last Aug. at $242/share, and Tesla closed the next day at $255…

    We give credit for marketing/vision, but see challenges in execution and finance:

    1. No shortage of manufacturing challenges: While we appreciate Teslas desire to become a best-in-class manufacturer, up until now it has seen no shortage of manufacturing challenges not only for the X, but also for the S. And while Tesla should ultimately ramp on volumes, it will likely come with a lot of headwinds, challenges, delay and inefficiencies even Elon Musk himself has admitted to these challenges in manufacturing in the past!

    2. How profitable can Tesla be on the 3? Even if we assume that all the Model 3 orders will convert to revenue, we are challenged to see the Model 3 reach its gross margin targets. Simply, its unclear to us that Tesla can reach its battery cost targets especially given the accelerated timeline. Plus there will be an incredible amount of content (which obviously comes with a cost) in the vehicle and Tesla is looking to increase vertical integration a risky and expensive proposition.

    3. Cash burn and soft margins will last for an extended period of time: With Tesla to be in a growth

  • [By Giulio Prisco]

    “Apple commends the Department of Transportation and NHTSA for facilitating a national conversation about the safe and ethical development and deployment of automated vehicles,” says Kenner. “Apple looks forward to collaborating with NHTSA and other stakeholders so that the significant societal benefits of automated vehicles can be realized safely, responsibly, and expeditiously.” (See also: Should Tesla Motors Inc (TSLA) Worry As Apple Inc (AAPL) Beefs Up Project Titan?)

  • [By Ben Levisohn]

    Barclays’ Brian Johnson and team explain why they “curmudgeoningly” stick to their $165 price target on Tesla Motors (TSLA), despite its Model 3-driven rally:

investment newsletters: Telefonica Brasil S.A.(VIV)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Wednesday, telecommunications services shares slipped by 0.08 percent. Meanwhile, top losers in the sector included Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE: TKC), down 2 percent, and Telefonica Brasil SA (ADR) (NYSE: VIV), down 2.5 percent.

  • [By Sofia Horta e Costa]

    Vivendi (VIV) rose 2.7 percent to 17.15 euros. Music, pay-TV, European cinema and Internet in Brazil will make up a new media group based in France after the split with phone unit SFR, according to a statement yesterday.

investment newsletters: Texas Instruments Incorporated(TXN)

Advisors’ Opinion:


    Xilinx makes programmable logic chips that are used in a multitude of applications, from autos and defense to the data center. Cramer said with all of the takeover activity in the semiconductor space, he could see Xilinx becoming a target for the likes of Texas Instruments (TXN) or Micron Technologies (MU) , which may be looking to diversify away from cell phone chips.

  • [By Beth Piskora]

    They are listed below:

    Altera (ALTR)yielding 1.7%

    Apple (AAPL)yielding 2.5%

    Applied Materials (AMAT)yielding 2.6%

    Cisco (CSCO)yielding 2.9%

    EMC Corp. (EMC)yielding 1.5%

    International Business Machines (IBM)yielding 2.0%

    KLA-Tencor (KLAC)yielding 3.2%

    Microchip Technology (MCHP)yielding 3.6%

    Oracle (ORCL)yielding 1.5%

    Qualcomm (QCOM)yielding 2.1%

    Texas Instruments (TXN)yielding 2.9%

    Xilinx (XLNX)yielding 2.3%

    Subscribe to S&P’s The Outlook here

  • [By Dividends4Life]

    Texas Instruments Inc. (TXN) engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. September 19th the company increased its quarterly dividend 7% to $0.30 per share. The dividend is payable November 18, 2013, to stockholders of record on October 31, 2013. The yield based on the new payout is 3.9%.

  • [By Jim Cramer]

    Net operating cash flow has slightly increased to $1,409.00 million or 1.87% when compared to the same quarter last year. In addition, TEXAS INSTRUMENTS INC has also modestly surpassed the industry average cash flow growth rate of -5.51%.


  • [By Monica Gerson]

    Benzinga's newsdesk monitors options activity to notice unusual patterns. These large volume (and often out of the money) trades were initially published intraday in Benzinga Professional . These trades were placed during Friday's regular session.

    Texas Instruments Incorporated (NASDAQ: TXN) Fri 7/1 62.0 Puts (Wkly) Sweep: 1426 @ ASK $1.24: 1426 traded vs 0 OI: Earnings 7/27 $61.86 Ref Allscripts Healthcare Solutions Inc (NASDAQ: MDRX) Jul16 13.0 Puts Sweep: 500 @ ASK $0.45: 500 traded vs 0 OI: Earnings 8/2 $13.07 Ref Intel Corporation (NASDAQ: INTC) Jul16 30.0 Puts: 7500 @ ASK $0.26: 7658 traded vs 47k OI: Earnings 7/20 $32.07 Ref Ares Capital Corporation (NASDAQ: ARCC) Dec16 16.0 Puts Sweep: 963 @ ASK $2.75: 974 traded vs 18 OI: Earnings 8/2 $14.45 Ref LinkedIn Corp (NYSE: LNKD) Aug16 115 Puts: 600 @ ASK $4.05: 615 traded vs 386 OI: $132.12 Ref

    Posted-In: Unusual Put OptionsNews Options Markets

investment newsletters: Sony Corp Ord(SNE)

Advisors’ Opinion:


    Sony is a provider of innovative technology products to consumers and companies worldwide. The company has set high expectations for its PlayStation 4 as it plans to sell 5 million consoles by March of next year. The stock has struggled in recent years but is now getting ready to test highs for the year. Over the last four quarters, earnings have improved while revenues have declined, however, investors have been pleased with the company. Relative to its peers and sector, Sony has been a year-to-date performance leader. Look for Sony to continue to OUTPERFORM.

  • [By Christopher Freeburn]

    Here are four things to know about Grand Theft Auto V:

    It is available for both Sony‘s (SNE) Playstation 3 and Microsoft‘s (MSFT) Xbox 360 consoles. It is set in a fictionalized urban landscape based on Los Angeles. It offers three main characters, unlike prior editions, which focused on one. Rockstar Games will launch an online version — Grand Theft Auto Online — next month.
    Nintendo Still Wont Make a Cash Grab for Mobile Games

    Yesterday, Amazon (AMZN) said that it had sold out its pre-orders of Grand Theft Auto V for Xbox consoles, though some copies for the Playstation were still available.

  • [By Demitrios Kalogeropoulos]

    Don’t write offNintendo’s (NASDAQOTH: NTDOY  ) chances for a strong holiday season just yet. Yes, even with a year’s head start, the company’s next-generation Wii U has been badly trailing sales of current-gen consoles from Microsoft (NASDAQ: MSFT  ) andSony (NYSE: SNE  ) . But that could be set to change soon.

  • [By Brian Stelter]

    Other companies, including Dish Network (DISH) and Sony (SNE), are already selling a cable-like bundle of channels via the Internet, but the prospect of Apple has garnered an outsized amount of attention.

| The

Dear Evan Hansen of铿cially opened at the Music Box Theater on Dec. 4, moving to Broadway after a hugely successful run at the Second Stage Theater in New York earlier this year. With an impressive creative team, a bold, original new story and a wave of good buzz behind it, Dear Evan Hansen may become the next Broadway sensation and the season’s breakout hit.

Leading the cast is Ben Platt, giving a tour-de-force, breakthrough performance in the title role. Platt is best known for the Pitch Perfect 铿lms and has starred in The Book of Mormon. The show is directed by three-time Tony-winner Michael Greif, who also helmed the original productions of Rent and Next to Normal. The score is composed by the Tony-nominated team of Benj Pasek and Justin Paul (who’s work includes A Christmas Story: The Musical and the upcoming 铿lm La La Land) with orchestrations by Hamilton’s Tony-winning musical director Alex Lacamoire.

The show centers on the titular Evan Hans en, a socially awkward, anxious high schooler who unexpectedly 铿nds himself at the center of a family tragedy. Evan writes a letter addressed to himself as an assignment from his therapist to deal with his anxiety, but the letter is intercepted by his classmate (and fellow outsider) Connor. When Connor later commits suicide, his parents 铿nd the letter and assume Connor had written it to Evan, whom they assume is a close friend.

Though he never actually knew Connor, Evan decides to go along with the lie, choosing to let the grieving family have some comfort in believing Connor wasn’t as friendless as he seemed. But Evan is also motivated by his own growing closeness with the family, as Connor’s parents become a sort of surrogate conventional family for Evan (who only has his single overworked mother).

Connor’s sister, Zoe, is Evan’s longtime crush. But things become more complicated when a memorial fund in Connor’s name begins and a moving speech by a reluct ant Evan becomes a social media sensation.

The Off-Broadway production won several industry awards, including the Helen Hayes award for Best Off-Broadway Musical, the Drama Desk award for Best Lyrics and the Obie Award for Distinguished Performance by an Actor. After opening on Broadway, the show received rave reviews from critics. The New York Times called the show “a gorgeous heartbreaker of a musical,” and that Platt’s performance was, “not likely to be bettered on Broadway this season.”

The positive buzz surrounding the show has led to impressive box of铿ce numbers and advanced ticket sales, an extraordinary feat for an original musical with no big-name stars or source material. Its sold-out Off-Broadway run broke sales records, and it played to packed houses and impressive box of铿ce 铿gures in its Broadway previews.

The show has also already built a devoted fanbase online — an official music video for the number Waving through a Window, w as created using fan-submitted artwork. Dear Evan Hansen tickets are available through Telecharge, where prices range from $69-$175. A digital ticket lottery has been announced for most performances, with tickets available for $40.

America’s divide over Donald Trump has spilled over into investing

To describe our current political climate as hyperpartisan would be the understatement of the millennium. Two researchers at the University of Georgia say political polarization is higher than at any time since the end of the Civil War.

And even though the election is over, theres no sign things are getting better.

This ugly election and its aftermath have divided families, ended friendships and strained marriages. Should it be any surprise its spilled over into investing?

And Im not talking about people selling utilities and buying financial stocks. Democrats who were bullish about the economy and markets under President Obama are now turning negative, while Republicans who downplayed every economic gain during the Obama years and dismissed the stock market as rigged by the Federal Reserve now are ready to sing Happy Days Are Here Again.

Thats clear from last weeks CNBC All-America Economic Survey, conducted by Repub lican and Democratic polling firms from Dec. 2-5, which reported a surge in optimism in the United States over the economy and stocks not seen in years.

The survey, CNBCs Steve Liesman reported, showed a jump of an unprecedented 17 percentage points in Americans who believe the economy will get better over the next year, with 43% of Americans now having a positive outlook.

But this is no outpouring of bliss from the American people that Donald Trumps election will usher in economic nirvana.

The surge was powered by Republicans and independents reversing their outlooks, Liesman reported. Republicans swung from deeply pessimistic, with just 15% saying the economy would improve in the next year, to strongly optimistic, with 74% believing in an economic upswing. Optimism among independents doubled but it fell by more than half for Democrats. Just 16% think the economy will improve.

That mirrors whats happened on Wall Street, where the election results brought on a wave of euphoria that the new president and a Republican-controlled Congress would break Washingtons gridlock and usher in business-friendly legislation like tax reform, looser regulations and even infrastructure building, which many of the same Republican senators and congressmen resisted strongly under the current Democratic president.

And the president-elects Cabinet and top staff appointments loaded with Goldman Sachs Group Inc. GS, -1.94% alumni, billionaires and retired generals, as well as Rex Tillerson, CEO of Exxon Mobil Corp. XOM, +2.22% as a potential secretary of state suggest that the Dodd-Frank financial regulations will be gutted, oil companies will drill, baby, drill, restrictions on military spending will be lifted and who knows? Maybe well have a war or two.

Whether or not thats good for the country, its damn good for stocks, which is why weve seen the explosive rally since Election Day (and the sell-off in bonds). Some of the optimism and improved investor and consumer sentiment has followed stocks upward, but this, too, may be driven by partisanship.

The post-election surge in major stock market indexes also has buoyed feelings about equities, with 40% saying now is a good time to invest, up 10 points from before the election, Liesman wrote. Again, Democrats became somewhat more negative on stocks while Republicans grew significantly more optimistic.

This is particularly ironic given the views of some of these same people during the current bull market, which will celebrate its eighth birthday in March. Whenever I wrote a bullish column on the economy or the markets, I would typically get dozens of comments from conservatives that the unemployment rate was a lie because of low workforce participation, the markets gains were illusory and totally Fed-driven and the whole thing would collapse once people realized how deeply in debt we were. These doom-and-gloomers sat in cash or, God help us, gold, which has gone nowhere.

In fact, another poll released last week by Public Policy Polling showed that only 41% of Trump voters said the stock market went up during the Obama administration vs. 39% who said it went down.

Talk about cognitive dissonance! In fact, during the Obama administration, the Dow Jones Industrial Average has soared from just under 8,000 to almost 20 ,000 now, a gain of around 150%. But how could that happen under the Worst President Ever?

When it comes to investing, I dont care whos president; I invest for the long run. And I believe this market still has some but not much more room to go. Its the second-longest bull market since World War II and the Schiller P/E ratio is near historic highs. Were just about ready to move into the manic, or melt-up, phase.

Now that your man has been elected and youre itching to put your cash to work again, Ill be happy to sell you some of my stock and book eight years worth of profits.

So, welcome back to the stock market, Trump voters, and come on in the waters fine.

Howard R. Gold is a MarketWatch columnist and founder and editor of GoldenEgg Investing, which offers exclusive market commentary and simple, low-cost, low-risk retirement investing plans. Follow him on Twitter @howardrgold.

Top Undervalued Stocks To Own For 2017

Russia’s President Vladimir Putin (R) and ExxonMobil Chairman and CEO Rex Tillerson (L) attend at the ceremony of the signing of an agreement between state-controlled Russian oil company Rosneft and ExxonMobil in the Black Sea port of Tuapse back in June 2012.  A joint venture with Rosneft has been on hold because of sanctions against Russia. (Photo by MIKHAIL KLIMENTYEV/AFP/Getty Images)

President-elect Donald Trump wants him. But many Russia-phobic Republicans and arguably not a single Democratic in the Senate will vote for Exxon CEO Rex Tillerson as Secretary of State.

Tillerson announced his retirement Wednesday as CEO of Exxon after 41 years at the oil giant following Trump’s nominating him to replace John Kerry at the State Department. Tillerson brings years of experience in dealing with foreign leaders in oil rich nations, including unsavory ones in the Middle East. But of most concern is likely to be Tillerson’s relationship with Vladimir Put in. Exxon has a $720 million joint venture with Rosneft, run by Putin’s friend Igor Sechin. That deal has been put on ice since the White House sanctioned Russian oil and gas companies in July 2014.

Top Undervalued Stocks To Own For 2017: AmerisourceBergen Corporation (Holding Co)(ABC)

Advisors’ Opinion:

  • [By Ben Levisohn]

    AmerisourceBergen (ABC) sprinted to the top of the S&P 500 after releasing Street-beating earnings this morning.

    Getty Images

    Shares of AmerisourceBergen jumped 8.8% to $$75.96 today, while the S&P 500 dropped fell 0.7% to 2,097.94.

    Leerink’s David Larsen and Matt Dellelo traces today’s big gain to Amerisource’s big drop following McKesson’s (MCK) earnings last week:

    This morningAmerisourceBergen reported adjusted EPS of $1.30, which was well ahead of Leerink/consensus of $1.22/$1.22. The quality of the beat appears decent, with some pressure in gross margin, completely offset by lower SG&A costs. Given the dramatic reduction in guidance provided byMcKesson (MP), investors had been very cautious heading into the quarter. We are pleased to see that F2017 EPS guidance of $5.63-$5.88 brackets Leerink/consensus estimates of $5.85/$5.82. Brand inflation is now expected to be in the +7-9% range from 10% previously, and F2017 is expected to be back-half loaded. Our first impression of the quarter is that the print and guide are good and there will likely be a relief rally in the shares.

    AmerisourceBergen’s market capitalization rose to $18.1 billion from $16.6 billion yesterday.

Top Undervalued Stocks To Own For 2017: Best Buy Co., Inc.(BBY)

Advisors’ Opinion:

  • [By Peter Graham]

    The Q3 2017 earnings report for large cap consumer electronics retail stock Best Buy Co Inc (NYSE: BBY) is scheduled before the market opens onThursday (November 17th) as a technical chart shows shares still in an apparent uptrend albeit also appearing to have leveled off or be range bound since mid-August:

  • [By Benzinga News Desk]

    USA CPI (YoY) for Oct 2.10% vs 1.60% consensus estimate. CPI (MoM) for Oct 0.10% vs 0.40% consensus estimate.

    New York Federal Reserve Bank President William Dudley is set to speak at the Global Research Forum on International Macroeconomics and Finance at 8:50 a.m. ET. New York Federal Reserve Bank President William Dudley will then speak at the "Evolution of Work" event in New York at 9:10 a.m. ET. Federal Reserve Chair Janet Yellen is set to testify before the Joint Economic Committee of Congress in Washington D.C. at 10:00 a.m. ET. Data on e-commerce sales for the third quarter will be released at 10:00 a.m. ET. The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET. Federal Reserve Governor Lael Brainard will speak in New York at 12:30 p.m. ET. Chicago Federal Reserve Bank President Charles Evans is set to speak in Chicago at 2:45 p.m. ET. Data on money supply for the latest week will be released at 4:30 p.m. ET. BZ News Desk Focus Wal-Mart (NYSE: WMT) Q3 EPS $0.98 vs $0.96 Est., Revenue $117.2B vs $118.7B Est. Best Buy (NYSE: BBY) Q3 EPS $0.62 vs $0.47 Est., Revenue $8.95B vs $8.85B Est. Cisco (NASDAQ: CSCO) Reports Q1 Adj. EPS $0.61 vs $0.59 Est., ev. $12.4B vs. $12.33B Est. First Solar (NASDAQ: FSLR) Updates Guidance FY16 Adj EPS $4.60-$4.80 vs $4.42 Es Sell-Side Themes

    Stephens (Equal-Weight) and Citi (Sell) both downgraded Atwood Oceanics (NYSE: ATW).


    Shares of Best Buy (BBY)  are again going haywire after the company’s earnings report, as a combination of low Wall Street expectations and clever tactics by the company’s executives drummed up another decent quarter and outlook. 

Top Undervalued Stocks To Own For 2017: Anadarko Petroleum Corporation(APC)

Advisors’ Opinion:

  • [By Craig Jones]

    Guy Adami would buy Anadarko Petroleum Corporation (NYSE: APC), which is going to report earnings on October 31. He wants to be long ahead of the earnings report, because he thinks that it could trade above $70.

  • [By Wayne Duggan]

    Bernstein maintains Outperform ratings on the following oil stocks:

    Apache Corporation (NYSE: APA) Anadarko Petroleum Corporation (NYSE: APC) Cobalt International Energy, Inc. (NYSE: CIE) Cabot Oil & Gas Corporation (NYSE: COG) ConocoPhillips (NYSE: COP) Devon Energy Corp (NYSE: DVN) EOG Resources Inc (NYSE: EOG) Range Resources Corp. (NYSE: RRC) Southwestern Energy Company (NYSE: SWN)

    GMP analyst Bob Bakanauskas went long E&Ps back on February 3. He predicts that the oil market will transition from oversupply to undersupply in 2017. From that point forward, the world will once again require shale production growth.

  • [By Ben Levisohn]

    Productivity analysis favors stock picking framework of shale scale + the next rung down. We continue to maintain our Buy ratings on several shale productivity winners such asEOG Resources (CL),Diamondback Energy (CL),PDC Energy (CL),Pioneer Natural Resources and RSP Permian, while increased visibility in a path towards oil price recovery has heightened our confidence in next rung down stocks such as Hess (HES) (CL), Anadarko Petroleum (APC), Encana (ECA), Carrizo Oil & Gas (CRZO) and Whiting Petroleum (WLL). While our well results analysis supports our thesis on these shale scale winners, we note that a number of these higher beta stocks also screened particularly well, further bolstering our view on these equities.

  • [By Garrett Cook]

    Citi notes that presentations from producers (the bank specifically notes Anadarko (NYSE: APC), Occidental Petroleum (NYSE: OXY), and Pioneer Natural Resources (NYSE: PXD)) showed a lack of commitment to enter 2017 hedge programs to lock in the economics for drilling.

  • [By Ben Levisohn]

    Stifel’s Michael Scialla and Daniel Guffey warn investors not to chase the biggest gainers among the exploration & production stocks, including Denbury Resources (DNR) and Whiting Petroleum (WLL), and instead stick with more stable fare such as Anadarko Petroleum (APC), Rice Energy (RICE), and Continental Resources (CLR). They explain:


    One grueling oil rout later and Freeport continues to dig out from under the mess. That digging included a recent asset sale to Anadarko Petroleum Corporation (APC). APC managed to pick up some really awesome assets for around $2 billion that FCX just couldnt make work. That infusion of cash was designed to help pay down the debt.

Top Undervalued Stocks To Own For 2017: Ascent Capital Group, Inc.(ASCMA)

Advisors’ Opinion:

  • [By Ian Wyatt, Publisher & Chief Investment Strategist, Wyatt Investment Research]

    Both of these stocks are overlooked, undervalued, and cash flow machines. The companies are Ascent Capital Group (ASCMA) and Covanta Holdings (CVA).

Top Penny Stocks For 2017

The recent announcement that Pilgrim’s Pride (NYSE:PPC) will be acquiring GNP Company is a welcome reprieve to those of us that see the value in the company. As investors likely already know, accusations of price index manipulation of the Georgia Dock index continue to swirl in the media, and the interest from the press doesn’t seem to be waning. Why should it? It has all the trappings of a great story: an evil corporation set on manipulating fair value of its products in order to squeeze more money out of consumers. My retort to those accusations is worthy of a research note in and of itself, but for now, my focus is on this purchase. In my opinion, there are plenty of reasons that investors should rejoice that Pilgrim’s Pride has made this deal, which might not be immediately clear when digesting the disclosure:

Immediately Accretive, Adding Diversification

At a $350M cash purchase price, Pilgrim’s Pride has guided that the deal carries roughly a 5.2x EBITD A multiple. This puts the EBITDA of the acquired business at $67M, which, when you consider a 5% as a likely interest rate for the purchase, puts the pre-tax income contribution at roughly $50M annually (assuming current EBITDA is a fair representation of a mid-cycle multiple). Use Pilgrim’s extremely consistent 35% tax rate, and the net result is that this business will add $29M to the bottom line annually, or $0.11/share. That isn’t ground breaking, but it also is not pocket change. Further, if Pilgrim’s can extract the $20M in expected synergies that the company guided to, diluted annual earnings per share contribution rises to $0.17/share annually. Not bad at all.

Top Penny Stocks For 2017: BioDelivery Sciences International Inc.(BDSI)

Advisors’ Opinion:

  • [By Jim Robertson]

    On Friday, our Elite Opportunity Pronewsletter suggested small cap specialty pharmaceuticalstock BioDelivery Sciences International (NASDAQ: BDSI) as a bullish/long trade:

  • [By Lisa Levin]

    In trading on Friday, healthcare shares fell by 0.62 percent. Meanwhile, top losers in the sector included Akorn, Inc. (NASDAQ: AKRX), down 17 percent, and BioDelivery Sciences International, Inc. (NASDAQ: BDSI), down 14 percent.

  • [By Lisa Levin]

    In trading on Thursday, healthcare shares tumbled by 2.13 percent. Meanwhile, top losers in the sector included Exelixis, Inc. (NASDAQ: EXEL), down 9 percent, and BioDelivery Sciences International, Inc. (NASDAQ: BDSI), down 10 percent.

Top Penny Stocks For 2017: QC Holdings Inc.(QCCO)

Advisors’ Opinion:

  • [By Monica Gerson]

    QC Holdings (NASDAQ: QCCO) shares tumbled 2.58% to reach a new 52-week low of $2.27. QC Holdings’ trailing-twelve-month profit margin is 0.60%.

    NewLead Holdings (NASDAQ: NEWL) shares dipped 6.56% to touch a new 52-week low of $0.08 after the company completed the acquisition of titles in the Viking Mine located in Kentucky, USA.

Top Penny Stocks For 2017: Key Tronic Corporation(KTCC)

Advisors’ Opinion:

  • [By Lisa Levin]

    Computer Peripherals: This industry rose 2.21% by 10:15 am ET. The top performer in this industry was Key Tronic (NASDAQ: KTCC), which gained 0.3%. Key Tronic’s trailing-twelve-month ROE is 14.57%.

Top Penny Stocks For 2017: Eagle Bulk Shipping Inc.(EGLE)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of Eagle Bulk Shipping Inc (NASDAQ: EGLE) were down 49 percent to $0.381. Eagle Bulk Shipping announced after Wednesday’s close it has reached an agreement with its lenders and holders of its equity to raise $105 million.

Top Penny Stocks For 2017: Brocade Communications Systems Inc.(BRCD)

Advisors’ Opinion:

  • [By Lisa Levin]

    Broadcom Limited (NASDAQ: AVGO) and Brocade Communications Systems Inc. (NASDAQ: BRCD) disclosed a definitive deal through which the former would acquire the latter for $12.75 a share in cash. This would translate into a valuation of about $5.9 billion, including $0.4 billion of net debt.

Top Penny Stocks For 2017: Rowan Companies Inc.(RDC)

Advisors’ Opinion:

  • [By Ben Levisohn]

    4) Saudi Dayrates Steady. The lack of further dayrate erosion on the bulk of the Saudi jackup contracts was a pleasant surprise (rates held flattish). Noble, Ensco, Hercules Offshore, Rowan (RDC) saw pricing revised flat to down 5% (we view this as a win). With these contracts set to revert back to previous levels in 2017 (up 10-40%) we have our doubts barring a sharp recovery in the jackup market.

  • [By Ben Levisohn]

    The Zephirin Group’s Longdley Zephirin contends that the oil market “needs to collapse before it can improve” but that didn’t stop him from upgrading Transocean (RIG), Diamond Offshore Drilling (DO), Ensco (ESV), and Rowan (RDC). He explains why:

  • [By Ben Levisohn]

    Offshore drillers likeAtwood Oceanics (ATW), Diamond Offshore Drilling (DO), Ensco (ESV), Noble (NE), Rowan Companies (RDC), Ocean Rig UDW (ORIG), and Transocean (RIG) have been on fire this week–and Evercore ISI’s James West and team credit a “2 sigma short interest unwind.” They explain:

  • [By Ben Levisohn]

    Oh, and offshore drillers got smacked again following earnings from Rowan (RDC) and Atwood Oceanics (ATW).

    We highlighted JPMorgan’s argument that the S&P 500, which has been trading like a bond, is headed for a fall, and looked at today’s drop here and here.