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)
- [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)
- [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)
- [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:
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)
- [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)
- [By WWW.THESTREET.COM]
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)
- [By WALLSTCHEATSHEET.COM]
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.