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CSCO | Dow Jones Bounces Back In 2 Day Rally | A two day rally brings the Dow Jones Industrial Average back above its 200 day moving average
The Dow Jones Industrial Average DIA and other major U S stock indexes put in a volatile week starting with a sharp decline only to end with gains for the week
Major stock indexes put on an impressive showing on Friday with the Dow Jones Industrial Average DIA gaining 165 points 1 06 the SP500 SPY adding 1 33 the Nasdaq Composite QQQ jumping 1 69 and the Russell 2000 IWM climbing 1 14 on the day
For the week The Dow Jones Industrial Average DIA climbed 0 6 the SP500 SPY added 0 8 and the Nasdaq QQQ gained 0 5
Friday s big news was the January Non Farm Payrolls report which showed just 113 000 jobs being added in January a huge miss from the expected 190 000 and up from December s weak 75 000 Most analysts suggest that it takes 100 000 new jobs per month just to accommodate new entrants to the work force More uncertainty was added to the employment situation with the household survey indicating a gain of 616 000
On My Stock Market Radar
The Dow Jones Industrial Average DIA reclaimed its 200 day moving average which was a significant gain on a technical basis but the index still remains below its 50 day moving average which is in a slight downtrend Relative strength is turning up from oversold levels and momentum is turning positive
A solid close above the 50 day moving average would point to the short correction being over and the opportunity for more gains ahead Point and figure charting for the Dow Jones Industrial Average remains on a sell signal with a downside price objective of 14 950 and significant resistance levels are 15 900 16 000 and at the blue 50 day moving average line
In other news Apple Nasdaq AAPL bought back 14 billion of its shares which bolstered the company s stock price by 1 4 on Friday
In other major markets gold GLD and oil USO both showed weekly gains
Several interesting events occurred this week
1 Investors pulled record sums from stock funds and went to bond funds as reported by
2 Noted technical analyst Tom DeMark compared this period over the next few days to the days just before the crash in 1929
3 Emerging markets funds have had greater outflows so far this year than in all of 2014
4 Monday s trading was the worst start to a February since 1983
Economic reports were mostly negative this week with factory orders car sales ISM and construction spending all declining
Volatility is obviously on the rise as triple digit moves in the Dow Jones Industrial Average become more prevalent and VIX the S P500 Volatility Index also known as the fear indicator has taken a wild ride from 12 to 21 and back to 15 since the beginning of the year falling 11 2 on Friday alone
Next week brings a number of important events including
Tuesday Janet Yellen testifies for the first time as Chairman of the Federal Reserve before the House Financial Services Committee Markets will be eager to hear what her plans are for the continued tapering of the Fed bond buying program
Thursday weekly jobless claims January retail sales Janet Yellen testifies at the Senate
Friday January Industrial Production University of Michigan consumer sentiment
Important earnings reports will come from several big hitters even as earnings season draws to a close
Tuesday Sprint
Wednesday Cisco CSCO
Thursday Pepsi PEP
Of course the most importantt of these events will be Janet Yellen s Congressional debut followed by the retail sales report on Thursday
Bottom line While many analysts say the correction is over technical and fundamental indicators show that the jury is still out for the week ahead
Disclaimer The content included herein is for educational and informational purposes only and readers agree to Wall Street Sector Selector s and before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group LLC |
CSCO | What The Buy Side Expects From Cisco | Cisco Systems CSCO is set to report FQ2 2014 earnings after the market closes on Wednesday February 12th Cisco is the world s largest supplier of networking equipment The company is currently going through a transition where it will refocus on areas of growth including data center hardware security software and mobile products As a result of the transition analysts are expecting both EPS and revenue to be down compared to the same time last year One cost associated with the transition was the 2 7 billion dollar acquisition of security software firm Sourcefire Recent revelations of NSA spying may also cut into Cisco s export sales as foreign firms worry about NSA spying through backdoors in the company s products The transformation that Cisco is undergoing will take time and may be painful but management believes the strategic shift will be worthwhile Here s how investors expect Cisco to report this quarter
The information below is derived from data submitted to the Estimize com platform by a set of Buy Side and Independent analyst contributors
The current Wall Street consensus expectation is for CSCO to report 46c EPS and 11 119B revenue while the current Estimize com consensus from 36 Buy Side and Independent contributing analysts is also 46c EPS and 11 198B revenue This quarter the buy side as represented by the Estimize com community is expecting CSCO to report in line with Wall Street on EPS but exceed on revenue
Throughout the previous 6 quarters the consensus from Estimize com has been more accurate than Wall Street in forecasting CSCO profit everytime and has been more accurate in predicting revenue twice By tapping into a wider range of contributors including hedge fund analysts asset managers independent research shops students and non professional investors Estimize has created a data set that is up to 69 5 more accurate than Wall Street but more importantly it does a better job of representing the market s actual expectations It has been confirmed by an independent academic study from Rice University that stock prices tend to react with a more strongly associated degree to the expectation benchmark from Estimize than from the Wall Street consensus
The magnitude of the difference between the Wall Street and Estimize consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market In this case we are seeing no difference in EPS consensuses and a larger differential than usual on revenue
This quarter analysts are expecting profit and revenue to be down compared to FQ2 2013 The distribution of estimates published by analysts on the Estimize com platform range from 41c to 51c EPS and 10 970B to 11 800B in revenues This quarter we re seeing a slightly wider distribution of estimates for CSCO compared to recent quarters
The size of the distribution of estimates relative to previous quarters often signals whether or not the market is confident that it has priced in the expected earnings already A wider distribution of estimates signaling less agreement in the market which could mean greater volatility post earnings
Throughout the quarter the EPS consensus from Wall Street fell from 52c to 46c while the Estimize EPS consensus both started and ended the quarter at 46c Over the same time period Wall Street lowered its revenue expectation from 12 642B to 11 119B while the Estimize forecast also decreased from 11 381B to 11 198B Timeliness is correlated with accuracy and downward analyst revisions going into a report are often a bearish indicator
The analyst with the highest estimate confidence rating this quarter is beckyhiu who projects 47c EPS and 11 130B in revenue In the Winter 2014 season beckyhiu rated as the 260th best analyst and is ranked 258th overall among over 3 800 contributing analysts Estimate confidence ratings are calculated through algorithms developed by deep quantitative research which looks at correlations between analyst track records and tendencies as they relate to future accuracy In this case beckyhiu is expecting CSCO to beat the Street on profit and revenue but report less revenue than the Estimize community is calling for
While Cisco is going through a tranisiton contributing analysts on the Estimize com platform still expect the company to beat the Street s projection on revenue and report in line on EPS Things may be slow for Cisco for awhile but the company is hoping to emerge from the shift to data center hardware security software and mobile products in a better position than it found itself in previously
Get access to estimates for CSCO published by your Buy Side and Independent analyst peers and follow the rest of earnings season by heading over to Estimize com Register for free to create your own estimates and see how you stack up to Wall Street |
CSCO | US Markets Weak On European Concerns | After a big day Tuesday the markets took a pause Wednesday The Dow was down about 31 points to finish the day at 15 993 94 The S P was down less than one point to 1 819 26 and the NASDAQ was up 10 points to close at 4 201 29
This morning U S markets are weak on European concerns The Dow is indicated down about 50 points while the S P is five points lower The NASDAQ is about 13 points lower
Top Stories
Comcast CMCSA will purchase Time Warner Cable TWC for about 44 billion or 159 per share
AMCOL International ACO announced Wednesday an agreement with to be acquired byImerys OTC IMYSF for 41 per share in cash AMCOL is a producer and marketer of diverse specialty materials The deal is expected to close in H1 2014 AMCOL closed Wednesday at 41 24 a gain of 12 percent
Asian Markets
Profit taking sent Asian markets lower Thursday The Nikkei was down about 1 8 percent to close at 14 534 74 and the Hang Seng was down nearly 0 5 percent to finish at 22 165 53
The Shanghai Composite closed 0 5 percent lower at 2 098 40 and the Kospi was down about 0 4 percent closing at 1 926 96
European Markets
Political strife in Italy profit taking and disappointing corporate earnings are putting pressure on European markets The FTSE is down about 0 6 percent at 6631 76 and the DAX is 0 2 percent lower at 9 521 43 Finally the CAC is 0 2 percent lower at 4 295 31
Commodities
Commodities are lower with the exception of natural gas WTI is down about 0 7 percent at 99 60 while Brent is 0 5 percent lower at 108 24 Natural gas is up two percent at 4 95 as winter weather in the south causes regional supply disruption
Gold is down about 0 4 percent at 1 290 10 and silver is lower at 20 18 Copper is down about 0 4 percent at 3 24
Currencies
The euro is 0 06 percent higher against the dollar at 1 3672 and the dollar is about 0 6 percent lower against the yen at 101 95
The pound is 0 3 percent higher against the dollar at 1 66 and the Aussie dollar is at 0 8961 against the dollar up about 0 7 percent
Pre Market Movers
Time Warner Cable is up 14 percent while Metlife MET is up five percent Angie s List ANGI is down 17 percent while LeapFrog Enterprises LF and Charter Communications CHTR are down 10 percent
Notable Earnings
Earnings reports from Wednesday
Talisman Energy TLM reported fourth quarter EPS of 0 11 missing the consensus estimate of 0 01 Revenue of 929 million missed the consensus estimate of 1 46 billion
Deere Company DE reportedfirst quarter EPS of 1 81 beating the consensus estimate of 1 53 Revenue of 7 65 billion beat the consensus estimate of 6 62 billion
Alpha Natural Resources ANR reported fourth quarter EPS of 0 52 beating the consensus estimate of 0 61 Revenue of 1 1 billion missed the consensus estimate of 1 02 billion
Whole Foods Market WFM reported first quarter EPS of 0 42 missing the consensus estimate of 0 44 Revenue of 4 2 billion missed the consensus estimate of 4 3 billion
Cisco CSCO reported second quarter EPS of 0 47 beating the consensus estimate of 0 46 Revenue of 11 2 billion beat the consensus estimate of 11 3 billion
MetLife MET reported fourth quarter EPS of 1 37 beating the consensus estimate of 1 30 Revenue of 18 38 billion beat the consensus estimate of 17 43 billion
The following companies will report after the closing bell today
Pepsico PEP is estimated to report its Q4 earnings at 1 01 per share on revenue of 20 16 billion
Discovery Communications DISCA is projected to report its Q4 earnings at 0 92 per share on revenue of 1 56 billion
Avon Products AVP is estimated to report its Q4 earnings at 0 30 per share on revenue of 2 75 billion
American International Group AIG is projected to post its Q4 earnings at 0 96 per share on revenue of 8 56 billion
Economics
Initial jobless claims will reach the market at 8 30 AM ET along with retail sales The EIA Natural Gas Report will be closely watched at 10 30 and Fed Chief Janet Yellen will appear before the Senate at 10 30 AM ET |
CSCO | Reckless New Fad Companies Raise Money Buy Back Stock Pay Dividends | Last Thursday the CEO of DIRECTV DTV said we are pleased to announce a share repurchase program of 3 5 billion This repurchase program reflects our strong balance sheet and confidence in continued strong DIRECTV revenue earnings and free cash flow growth as well as our belief that our stock is far below our intrinsic value Source DIRECTV Announces Fourth Quarter and Full Year 2013 Results DIRECTV February 20 2014
DIRECTV is buying back its shares because it believes they are undervalued Since when did CEOs of companies on key stock indices become stock pickers
In 2013 DIRECTV s total corporate earnings came in at 2 85 billion That means the company is spending 122 of what it made in 2013 to buy back its stock Talk about pumping up per share earnings
Cisco Systems Inc CSCO another major component of key stock indices reports it is raising 8 0 billion to repay some of its debt It will use the remainder of the money to buy back its shares and pay dividends Source Cisco Systems Inc February 24 2014 Yes instead of raising money to invest in equipment technology or research and development R D the new fad is for companies to raise money to buy back their shares and pay dividends
These are only two examples of companies in key stock indices using share buybacks to make their per share corporate earnings look better There are many others that are doing the exact same thing
Dear reader with corporate earnings growth falling to its lowest level since 2009 companies have no choice but to prop up earnings via stock buyback programs Companies in key stock indices are worried about their corporate earnings By no surprise so far 75 of the S P 500 companies have issued negative corporate earnings guidance for the first quarter of 2014 Source FactSet February 21 2014
Fundamentals Technicals They are getting thrown out the window First we had the Federal Reserve print money to buy U S Treasuries and the illiquid mortgage backed securities on the books of the big banks Now we have big public companies in key stock indices borrowing money to buy back their stock and to pay their shareholders dividends Does any of this make sense any more
The run up in key stock indices we ve seen since 2009 is reaching its last months if not weeks At this point I m fearful of what s to come for key stock indices because as far as I am concerned irrational behavior has taken over the markets
Disclaimer There is no magic formula to getting rich Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis The opinions in this e newsletter are just that opinions of the authors Information contained herein while believed to be correct is not guaranteed as accurate Warning Investing often involves high risks and you can lose a lot of money Please do not invest with money you cannot afford to lose |
XOM | Why Energy Efficiency Is The Cheapest Form Of Energy | For a subject that more often than not draws blank stares at dinner parties energy efficiency has an uncanny ability to provoke controversy among analysts and policy makers alike
The latest study to dispute its benefits has once again ignited a debate between those who question the value of federal and state subsidies for efficiency programs which they argue have questionable returns Leaving aside the highly technical debate over modeling efficiency and the more personal friction between engineers and economists the policy implications are significant
Energy efficiency is widely considered the most important energy source today with positive effects ranging from lower energy costs to boosting the local economy to improved health outcomes and social wellbeing Nowhere is this more true than in the state of California
The controversial paper published in June posits that the costs of implementing the U S Weatherization Assistance Program outweigh the benefits in terms of efficiency savings The findings have been disputed by the and among others
More broadly however it once again brings into question the value and purpose of energy efficiency programs in the United States In California the state that has arguably had the most success with increasing energy efficiency the debate continues Since 1975 California s energy use has essentially plateaued while consumption per capita in the rest of the United States has almost doubled It is widely accepted that California s energy efficiency programs are at least partly responsible
Opponents dispute the extent to which the benefits can be attributed to green policies and programs that have spanned everything from fuel efficiency standards to appliance ratings to weatherization to simply better communicating the importance of energy savings to Californians In a 2008 Stanford economists found that only 23 of the difference between California s energy use and the U S as a whole was attributable to policy Still if this is to be considered the lower end of the range it remains a significant figure
The remainder they argue is attributable to structural factors including California s mild climate and high energy costs While Californians may save on winter heating the high incidence of air conditioning in the nation s southwest surely undermines the first argument As for the second in spite of higher energy costs Californians energy bills are lower than the rest of the country
The cost of energy efficiency programs start at less than 2 cents per kilowatt hour kWh when low hanging fruit is still an option That cost will rise as the market matures to 3 5 cents kWh A by the American Council for an Energy Efficient Economy analyzed energy efficiency programs across 20 states from 2009 2012 finding an average cost of 2 8 cents per kWh cheaper than any other energy source and certainly cheaper than generating power in a state like California
According to the California Public Utilities Commission CPUC the efficiency standards are saving over 5 700 GWh per year The CPUC estimates this as the equivalent of taking 600 000 California households off the grid and saving 356 000 tons of CO2 emissions
These savings directly impact the broader health and wellbeing of California s residents as less power plants are needed and more efficient vehicles means cleaner air Efficiency programs can also support the greater deployment of renewable energy By targeting efficiency measures to certain times of the day they can help flatten the demand curve thus facilitating the use of intermittent renewable power sources such as wind and solar
Additionally California s energy efficiency programs have contributed to a thriving green market with tens of thousands of companies offering a variety of goods and services to meet the state s efficiency and clean energy targets
The global efficiency market is also growing The International Energy Agency IEA Exxon Mobil Corporation NYSE XOM and BP LONDON BP have all identified energy efficiency as a leading energy source in the coming decades According to the coming decades will see a decoupling of global GDP growth and energy consumption with energy savings filling the gap
IEA estimate that investment in global energy efficiency came to That s more than the investment in coal oil natural gas and renewable power generation combined
Together these efforts don t just mean cheaper energy for consumers They mean a reduction in our carbon footprint economic opportunities and improved health outcomes in many parts of the world
Improvements can be made in the monitoring and oversight of energy efficiency programs to ensure that the benefits do outweigh the costs But overall energy efficiency has shown remarkable gains in a relatively short period of time in places like California and this is just the beginning
Read more
Disclosure Originally published at com |
XOM | Now Is A Good Time To Pick Up Some Oil Stocks | Oil s oversized reaction to negative news from Greece and China on Monday should really have come as no surprise with the value of 20 20 hindsight I have for some time now that the commodity would break out of its narrowing range and that the more times it failed to break the resistance point at 62 the more likely it was that that break would be in a downward direction It is logical that the longer that it took the more violent that break would be Traders were looking for excuses to sell and last weekend gave them plenty of those Now that the breakout has happened the next logical move is a test of the previous lows just below 50 for the U S benchmark West Texas Intermediate WTI futures Despite that though there are other factors that make it a good time to be buying back into some oil stocks
Figure 1 Nymex WTI Futures Source NASDAQ com
It takes a certain amount of ornery contrarianism to think this way but the fact that Wall Street analysts are so pessimistic about Q2 earnings in the oil and gas sector is principal among them The constant downward revision of expectations that has led to an average forecast of an over 60 percent year on year reduction in EPS in the energy sector was fully priced in before yesterday s dramatic fall in oil and now looks overdone if anything
Nobody can realistically expect a spectacular earnings season for energy this time around but in the short term at least it is not results in relation to last year that drive prices it is results in relation to expectations and there is good reason to believe that those expectations are excessively negative Look again at the 6 month chart for WTI above and you will see that oil spent most of the second quarter of this year moving sharply upwards to test the 62 level That makes it likely that some of the worst case scenarios envisioned by CEOs in their guidance and the analysts in their forecasts have not played out
Normally It might not be as bad as it could have been is a terrible reason to buy anything In this case though particularly when it comes to the large integrated oil companies it could well spark a sustained rally that survives even if oil prices do test lows over the next few weeks That makes relatively small risk controlled long positions in those stocks a tempting proposition
Since 1992 his secrets were locked away in his brain but just recently he agreed to a private interview It was all caught on camera and what he has to say will change everything you think you know about trading But you need to see it now before it s removed from the Internet again
Both Exxon Mobil NYSE XOM and BP LONDON BP offer logical stop loss levels Just below 77 and 35 respectively that would limit potential losses from long positions at current levels to less than 10 percent while offering considerable upside Both derive a good portion of their revenue and profit from refining oil in addition to actually extracting it and refining operations are more profitable in volatile markets than when prices are steady The volatility at relatively high levels that were a feature of the second quarter therefore could be a win win for both companies
Obviously backward looking earnings aren t the whole story If demand in China continues to weaken or if the Greek tragedy drags Europe and the rest of the world into the mire then energy stocks would be hard hit That is why protecting positions with stop loss orders is essential if you buy into the sector here With that said though Warren Buffett once famously said that we should be Greedy when others are fearful The exaggerated reaction to this weekend s news in the oil market and the extremely low expectations for earnings suggest that there is plenty of fear around It may be a good time to get greedy |
XOM | 3 Signs Which Would Signal A Fracking Revival | Investors and market analysts are split on which way the fracking industry is heading Some point to falling rig counts in the shale industry as a sign that prices are ready to rebound which helps the surviving frackers whereas others see a persistent glut of oil continuing to depress prices and bringing everyone down What investors really should be looking for is one or more of the following signs that will indicate when the fracking industry is ready to rise
1 Falling oil production from a major OPEC producer
This could be as simple as a change in policy announced at a regular OPEC meeting or as sudden as the outbreak of war Saudi Arabia OPEC s most influential member already signaled a long term commitment to expanding production and reached an unprecedented a day in June The kingdom shows no signs of ending the massive flow of oil from its fields and even if crude exports from Saudi Arabia have declined they are exporting refined product instead which equally depresses the market
On the other hand tensions between oil producing countries in the Middle East continue to grow particularly in the wake of the Iranian nuclear accord which Saudi Arabia and other Gulf countries consider a threat Saudi Arabia recently vowed to defend neighboring countries from growing Iranian aggression and has already been involved militarily in Yemen Though outright war between Saudi Arabia and Iran is unlikely future proxy fights between the two powers in Syria Iraq and Yemen could destabilize key oil transport routes or decrease oil exports
2 Oil majors purchasing small shale companies
The bottom out when more small shale oil companies can no longer sustain operations and either put themselves up for sale or go bankrupt Larger better capitalized companies are waiting in the wings ready to purchase valuable assets or entire companies at the right price BPZ Resources Inc OTC BPZRQ WBH Energy American Eagle Energy and Quicksilver Resources Inc OTC KWKAQ are already bankrupt Houston based and with 2 9 billion in debt are just two of the very latest casualties When major firms like Continental Resources NYSE CLR ExxonMobil NYSE XOM or even Saudi Aramco come in to sweep up valuable assets we will know the bottom has been reached and shares in the surviving companies are set to rise
3 Increasing refining capacity
A major factor depressing oil prices in the United States is the lack of refining capacity for West Texas Intermediate WTI oil WTI is a light and sweet grade of crude oil that requires different refining processes from heavy crude or sour high sulfur content crude oil Most refineries in the United States and around the world are outfitted to process heavy grades of crude oil that come overwhelming from the Middle East and Venezuela
However the fracking industry has recently generated large amounts of this type of crude oil that most North American refineries are not equipped to process Those that do take light crude are running constantly to keep up with incredible backlog and returning almost Most crude oil produced in the United States cannot be exported due a 1970s era oil export ban However finding global outlets for the excess light crude would not be easy either since most global refineries cannot handle light crude and those that can are largely saturated with light crude from Nigeria the North Sea Iraq and soon to be Iran
When new refineries open in the United States and old refineries are retrofitted to process the light crude we will finally see the bottlenecks relieved and rising market value return to shale companies |
TEVA | Teva set for bullish day on Berkshire investment shares up 9 premarket | Teva Pharmaceutical Industries NYSE TEVA is set for an opening gap on the news that Warren Buffett s Berkshire Hathaway NYSE BRKa has acquired a stake in the drug maker A timely bonus for investors is a podcast on Teva from SA s Daniel Shvartsman and Mike Taylor published yesterday Previously Teva up 7 after hours on Berkshire stake Feb 14 Now read |
XOM | U S oil futures fall sharply Brent rises in diverging trade | Investing com Crude oil futures were mixed in choppy trade on Tuesday as a refinery closure weighed on West Texas Intermediate prices while Brent futures rallied tracking strong gains in global equity markets
Crude oil for delivery in October on the New York Mercantile Exchange tumbled 1 23 or 2 67 to trade at 44 80 a barrel during U S morning hours U S markets were closed on Monday for the Labor Day holiday
U S crude prices were weighed down by the closure of the largest crude distillation unit at Exxon Mobil NYSE XOM s 502 500 barrel per day Baton Rouge Louisiana refinery
Elsewhere on the ICE Futures Exchange in London Brent oil for October delivery tacked on 57 cents or 1 21 to trade at 48 21 a barrel
Market sentiment was boosted amid a global stock market rally as grim trade data from China boosted hopes for another round of stimulus from China s central bank
China s trade surplus widened to 60 2 billion last month from 43 0 billion in July compared to estimates for a surplus of 48 2 billion
Exports slumped 5 5 from a year earlier better than forecasts for a decline of 6 0 while imports plunged 13 8 far worse than expectations for a drop of 8 2
The disappointing data raised expectations of more policy easing from China s central bank in the coming months
China s equity markets witnessed yet another choppy session which featured wild swings on Tuesday The Shanghai Composite rallied more than 4 5 in the last hour of trade to erase the session s losses and end up 3
Volatility in Chinese stock markets in recent months has been a key theme for global markets amid concerns the world s second largest economy may be slowing more than expected
The upbeat sentiment carried over to European markets where Germany s DAX France s CAC 40 and London s FTSE 100 were all up nearly 2
In the U S Wall Street jumped after the open with the Dow rallying more than 250 points as traders returned to their desks from the Labor Day weekend in an upbeat mood |
XOM | Brent up 4 percent riding equities rally U S crude down | By Barani Krishnan NEW YORK Reuters Brent crude futures jumped 4 percent on Tuesday as strong stock markets helped the global oil benchmark recover substantially from a 6 percent tumble in the previous session U S crude prices were weaker reopening from Monday s U S markets closure for the Labor Day holiday Stocks on Wall Street on Tuesday headed for a third straight day of gains in four building on the euphoria in European equity markets after bullish second quarter euro zone growth and stellar German exports data London traded Brent was up 1 80 or 3 8 percent at 49 43 a barrel by 11 47 a m EDT It rose more than 2 during the session to hit an intraday high of 49 72 Brent s gains were capped earlier by China s mixed crude imports for August The data showed a 6 percent gain year on year and 10 percent rise for the first eight months but a 13 percent slide from July Also weighing on the market was the growing potential for Iran to flood the oil market with more supply as the Obama Administration gained further support to block Congress disapproval of its aim to lift nuclear related sanctions on Tehran crude exports There are random factors at play said Scott Shelton commodities specialist with brokerage ICAP LONDON IAP in Durham North Carolina U S crude was down 5 cents at 46 a barrel It had fallen almost 2 at one point U S crude was weighed by the closure of the largest crude distillation unit at ExxonMobil NYSE XOM Corp s 502 500 barrels per day bpd Baton Rouge Louisiana refinery
On Monday Phillips 66 NYSE PSX shut down a fluid catalytic cracker at its 314 000 barrel per day refinery in Wood River Illinois The gasoline making unit is expected to restart within 48 hours a source familiar with the plant s operations said |
XOM | Crude futures mixed amid refinery shutdowns 5B Venezuela China deal | Investing com U S crude futures fell mildly on Tuesday while the global benchmark of crude rallied sharply from a massive sell off one session earlier in a day of deviated trading
On the New York Mercantile Exchange WTI crude for October delivery wavered between 44 15 and 46 40 a barrel before settling at 45 85 down 0 20 or 0 45 on the session U S crude futures remain up by nearly 20 since August 25 when they touched down to a fresh six and a half year low around 38 a barrel U S markets were closed on Monday for the Labor Day holiday
On the Intercontinental Exchange ICE brent crude for October delivery traded in a broad range between 47 65 and 49 83 a barrel before closing at 49 44 up 1 80 or 3 85 on the day One session earlier brent futures plummeted 6 amid continuing worries related to a glut of oversupply on the global markets The spread between the international and U S benchmarks of crude stood at 3 59 slightly above Friday s level of 3 58 at the close
Texas Long Sweet futures fell slightly during Tuesday s session amid shutdowns at two gas refineries throughout the nation In Baton Rouge Louisiana Exxon Mobil Corporation NYSE XOM shut down a 502 500 crude distillation unit one of its largest in the country underscoring the impact of crashing oil prices On Monday Phillips 66 NYSE PSX shut down its gasoline refinery in Wood River Illinois following the malfunction of a critical cracking unit needed to help complete the conversion process The gasoline production unit which produces more than 300 000 barrels per day is expected to reopen within the next 48 hours a source told Reuters
Elsewhere Venezuela president Nicolas Maduro said his nation has signed a deal for a 5 billion loan from China aimed at helping boost its oil production Appearing on Venezuelan state run television on Tuesday Maduro indicated that the deal will help the country bolster crude output in a gradual way over the coming months Crude proceeds from Venezuela s state run oil companies account for 50 of its government revenue 95 of its exports and 25 of its GDP according to the U S Council on Foreign Relations Venezuela one of the world s largest exporters of oil has been hammered by the downturn in crude prices in recent months
On Capitol Hill U S senate democrats secured enough votes to thwart a Republican led resolution against an Iranian nuclear deal paving the way for U S president Barack Obama to veto any challenge against the bill When a framework of a deal was reached between Iran and a group of major Western powers in April Facts Global Energy an energy consulting firm forecasted that the Iranian oil exports could reach a level of 1 7 million barrels per day within 12 months of the easing of longstanding economic sanctions against the gulf state Iran is reportedly hoarding 30 million barrels of crude ready for export
The U S Dollar Index which measures the strength of the greenback versus a basket of six other major currencies reached an intraday high of 96 25 before falling back to 96 04 down 0 11 in U S afternoon trading Dollar denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates |
XOM | NYMEX crude falls in Asia with API estimates ahead on U S stocks | Investing com Crude oil prices fell in Asia on Wednesday with investors looking ahead to weekly inventory reports from the U S
On Wednesday the American Petroleum Institute will release its estimates of U S crude and refined product stocks a day later than usual because of the U S Labor Day holiday on Monday The Department of Energy will release its figures on Thursday
On the New York Mercantile Exchange WTI crude for October delivery fell 0 54 to 45 69 a barrel
Overnight on the Intercontinental Exchange ICE brent crude for October delivery traded in a broad range between 47 65 and 49 83 a barrel before closing at 49 44 up 1 80 or 3 85 on the day One session earlier brent futures plummeted 6 amid continuing worries related to a glut of oversupply on the global markets The spread between the international and U S benchmarks of crude stood at 3 59 slightly above Friday s level of 3 58 at the close
Texas Long Sweet futures fell slightly during Tuesday s session amid shutdowns at two gas refineries throughout the nation In Baton Rouge Louisiana Exxon Mobil Corporation NYSE NYSE XOM shut down a 502 500 crude distillation unit one of its largest in the country underscoring the impact of crashing oil prices On Monday Phillips 66 NYSE NYSE PSX shut down its gasoline refinery in Wood River Illinois following the malfunction of a critical cracking unit needed to help complete the conversion process The gasoline production unit which produces more than 300 000 barrels per day is expected to reopen within the next 48 hours a source told Reuters
Elsewhere Venezuela president Nicolas Maduro said his nation has signed a deal for a 5 billion loan from China aimed at helping boost its oil production Appearing on Venezuelan state run television on Tuesday Maduro indicated that the deal will help the country bolster crude output in a gradual way over the coming months Crude proceeds from Venezuela s state run oil companies account for 50 of its government revenue 95 of its exports and 25 of its GDP according to the U S Council on Foreign Relations Venezuela one of the world s largest exporters of oil has been hammered by the downturn in crude prices in recent months
On Capitol Hill U S senate democrats secured enough votes to thwart a Republican led resolution against an Iranian nuclear deal paving the way for U S president Barack Obama to veto any challenge against the bill When a framework of a deal was reached between Iran and a group of major Western powers in April Facts Global Energy an energy consulting firm forecasted that the Iranian oil exports could reach a level of 1 7 million barrels per day within 12 months of the easing of longstanding economic sanctions against the gulf state Iran is reportedly hoarding 30 million barrels of crude ready for export
The U S Dollar Index which measures the strength of the greenback versus a basket of six other major currencies reached an intraday high of 96 25 before falling back to 96 04 down 0 11 in U S afternoon trading Dollar denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates |
XOM | Special Report Commercial ships scoop up desperate human cargo | By Jonathan Saul LONDON Reuters In October last year bulk carrier CS Caprice was shipping a cargo of barley across the Mediterranean when it answered a call to help about 500 people who were drifting north of Libya without a skipper A brewing storm threatened to capsize their tiny fishing boat They had no food or water and they had been three days at sea said the ship s captain Joshua Bhatt When they showed small infants to us it was a really pathetic sight They were asking can you take us to Italy Like any merchant ship the crew of the Caprice was bound by the United Nations Convention on the Law of the Sea to render assistance to any person found at sea in danger of being lost Such rescues used to be rare But as the number of refugees and migrants attempting to get to Europe has spiked over the past two years it has drawn in more and more vessels like the Caprice Since January 2014 more than 1 000 merchant ships have helped rescue more than 65 000 people according to estimates from the International Chamber of Shipping That s more than one in 10 of the estimated 585 000 migrants and refugees who crossed the Mediterranean over the period Commercial shipping companies have been absolutely heroic said Melissa Fleming chief spokeswoman for the United Nations refugee agency But shipping companies are increasingly frustrated with that role They are prepared to help they say But they want governments to take more of the burden One problem is cost Insurance covers some expenses when a ship is forced to conduct a rescue but not the loss of business which ranges from 10 000 per day for cargo ships to more than 50 000 for oil tankers A more important concern is security Merchant ships are being used as radio taxis to pick up people said Harry Hajimichael general manager with Greek based operator Tsakos Shipping and Trading four of whose vessels were involved in rescuing more than 600 people in the Mediterranean last year This is not the right way to do it For firms like the Bahamas based Campbell Shipping which manages the Caprice the main worry is who they might be rescuing We do not know who we are taking onboard There are no papers there are no background checks said Rajesh Dhadwal senior manager for marine and safety at the company What if among the people rescued a few are part of Islamic State or a terrorist organization and they take over a tanker The European Union EU says it has responded to the concern tripling the budget of border management agency Frontex We have now deployed at sea the largest operation in the history of Frontex and of the operational cooperation among the Member States at the external borders a spokeswoman said by email Since June she said that effort has saved over 122 000 lives The EU is also looking to improve cooperation between national coast guards Even so the shipping industry says more needs to be done Merchant shipping accepts that it has a role to play in this crisis said Peter Hinchliffe secretary general of the International Chamber of Shipping a trade association whose members represent over 80 percent of the world s fleet But we also need support In Mediterranean commercial ships scoop up desperate human cargo microsite HUMBLE REQUEST The Caprice with 27 000 tonnes of Latvian barley on board was heading for Qatar just after lunch on Oct 22 when the call came from Malta s search and rescue center A fishing boat was in distress after its skipper had abandoned it A strong gale was forecast but no other ship had responded to the call On board the Caprice the captain checked with his company s headquarters It was off the coast of Africa and there was the Ebola situation at the time said Campbell Shipping s Dhadwal He worried that the 20 crew members on the Bahamian registered ship could be at risk The company was also concerned that 500 passengers could overpower the small crew a common fear as the average merchant ship crew is no larger than that on the Caprice Nonetheless the Caprice changed course for the distressed vessel It was named Barrakad al hadi and had come from Egypt By twilight the vessels were near enough and Bhatt the captain called the fishing boat on the radio My humble request he said according to a video made by the crew Please come alongside We have called for permission to take you all on board our vessel Please understand that the weather is going to be bad The fishing boat replied Everybody here wants to go to Italy Night neared and the fishing boat kept its distance On the video someone on the fishing boat radioed to say that if the Caprice could not take the passengers to Italy the ship should give them food and water and let them continue on their way Migrants often have no idea of the risks they face said Tsakos Shipping and Trading s Hajimichael The Med is not a lake he said It has got very very sudden weather Bhatt could not let the migrants sail on I started chasing them he said By now it was dark Bhatt did not know if Italy would take the migrants And it wasn t clear where their journey would end said Campbell Shipping s Dhadwal Once you take them there have been cases of ships bumping from port to port and countries not taking them he said Once we take them onboard who is going to accept them We really did not know RISK OF IGNITION In a rescue like this only some of the merchant ships risks are covered by insurance Ship insurers known as P I clubs usually cover crew injury pollution and cargo damage If a refugee attacks and injures a crew member or breaks into a container and damages cargo or turns on a fuel pipe causing pollution the insurance would cover the shipowner said Jonathan Hare General Counsel with P I insurer Skuld But rescue operations also take shipping insurance into uncharted waters said Jonathan Moss head of transport at law firm DWF A normal policy will not pay fines for late arrival or help cover the cost of chartering another vessel at short notice Insurers are keen to point out the risk of owners breaching their safety certificates by taking on board more passengers than have been legally agreed said Moss Similar gray areas are found regarding where liability would fall if migrants should die or be injured while being rescued by a ship s crew Like all other merchant ships in this situation the crew of the Caprice was headed into that gray area The Italian government agreed to take the migrants who then agreed to board the Caprice But the swell was mounting The weather report was really bad Bhatt said Force 8 Force 9 which is not good for the boat and it would definitely have sunk with all the people People were hanging off the side of the fishing boat as the Caprice came alongside and the wind was pushing the small boat towards the ship s massive propeller Bhatt said It took a couple of hours to get the passengers safely on board the bigger ship For merchant ships every rescue is complex said Hajimichael With a purpose built ship you have just to walk from one boat to the other It s another thing climbing from a small boat onto a vessel the size of a building in the middle of a rough sea These people are tired are carrying their belongings he said Some are carrying children or their babies Some of the trickiest rescues in the Mediterranean have been carried out by oil tankers On a tanker matches sharp objects or even mobile phones and electronic devices can be dangerous A wrong move may cause an ignition Hajimichael said The only space migrants can use is crew accommodation not the deck You can use the hospital medical room and you still have 200 people on board that require clothing water and food Hajimichael said You would imagine all of them will have to use the toilet The tankers that cross the Mediterranean today can carry 2 million barrels of oil That s more than the Exxon NYSE XOM Valdez was carrying when it ran aground in Alaska in 1989 causing oil to spread over 350 miles of beaches EMERGENCY By about 10 pm the Caprice had counted 510 people aboard The fishing boat was abandoned to what Bhatt said was by now a ferocious sea The ship only had enough lifejackets for 30 people and the cook Hari Prasad Sharma was confused How could he feed hundreds of people on supplies for 20 This is the first time I have done anything like this he said The captain came up with the idea of an Indian porridge made from rice and dhal This the crew served in batches dished out on thick sheets of paper As the weather mounted the crew had to shelter the passengers in store rooms mast houses and crew accommodation The sea was roaring in flooding the entire main deck Bhatt said Half the crew worked to feed the passengers while the other half slept The Caprice sailed through the night and the next day On the second day just as it was nearing the Italian coast one of the rescued women a Syrian suddenly began gasping for breath We radioed for medical advice They asked us to inject 100 mg of hydrocortisone Bhatt said Since we were at the coast we requested a chopper for an airlift as it was better to take her off As seafarers we cannot do much for emergencies The Caprice which had been due in Qatar on Nov 4 instead arrived at Augusta in Sicily late on Oct 24 The diversion took about 60 hours but the whole journey to Qatar was delayed by seven days At Augusta police said they counted 409 people not 510 off the ship The passengers were dispersed to unnamed immigration centers around Italy Neither police nor the shipping company could explain the numbers discrepancy but it is common for migrants to try to dodge police and continue their journey without being identified Manager Dhadwal was not allowed on the ship until everyone was off I could smell a stench the vomit the urination on deck he said The whole ship was filthy Everything was dumped on board including the life jackets We had to get the ship clean and fumigated and get health checks for the crew and replenish the ship Dhadwal said the ship s insurers paid for cleaning and some other costs but the company is still in talks with them over reimbursement and it has yet to agree costs with the charterers whose barley was delayed |
CSCO | Dead Cat Cisco Right Into Downtrend | Cisco CSCO is heading straight for 21 after retesting the downward trend line off of the August highs Also there is a still a huge gap to fill there as well Then and only then would I entertain the prospect of a long position in CSCO Here s the chart analysis for CSCO |
CSCO | A Technical Look Major Market Averages Cisco And Tesla | All the major market averages remain in defined up trends The S P 500 along with the broader market suffered some higher than usual volatility on Thursday but finished the week strong on the back of a better than expected Non Farm Payroll report We have addressed the technical structure of the S P 500 in the last post last week and not much has changed since As the chart above denotes any potential further weakness in the near term should find support near the May highs at 1709 which from current highs would match the size of the last two corrections as well Also last week we highlighted the fact that the upside target in the S P 500 had been reached and that the next ultimate target really came down to the Dow from here on out Here s a look at the Dow chart we can see how this latest consolidation phase taken place above the May highs along with the fact that this week we were able to close above each of the last three swing highs It s really hard to get too near term bearish right now Here s is what may become the ultimate target for this bull market This chart above shows trading in the Dow going all the way back to 1998 I ve highlighted each bull market high point over the last 15 years You can see that each time the Dow got approximately 2400 points overextended above it s previous bull market top the bull market ended Using this calculation we can project a potential bull market target of approximately 16 580 16 645 As further confluence we can see the last bull market lasted 5 years so March of 2014 would also match the time frame of the previous Along with the fact the last two bull market highs came 7 years apart 2000 2007 another 7 years would also yield 2014 Now the intentions are not to try to pick a top but rather highlight a historical pattern and heighten your alert if indeed we get some weakness off those levels Also I am not in anyway saying a major crash will proceed either I am very long term bullish and believe the markets are headed much much higher over time Check out I created over the summer if you don t believe me However a good 20 correction from our target levels would be healthy and in line with the historical market moves This is the more likely scenario in my mind I will certainly elaborate on specific downside targets if we see weakness setup But for know there really is no reason to jump the gun and overthink things Let s take a look at the Russell 2000 in the above chart as that is what I believe was the key to market movement this week I ve highlighted the supply and demand pattern I can see develop since early this year We have seen a series of rallies between 110 120 points and declines between 44 55 points That pattern came into play again this week as the Small caps have underperformed lately We will see if this momentum can carry the broader market higher or will the S P 500 drag it back to so it can find it s own support around the 1709 area we pointed out Taking a quick look at a couple stocks Cisco CSCO has seemingly found support around 22 which was a prior pivot high and also nearly matched the drop the October highs to the low at 23 33 when taken from the last swing high at 24 80 Cisco has performed pretty well this week and the real test should come soon as resistance is near at 23 75 I believe a break above bodes well for shifting the short term trend back up again and making a run back to 26 Sticking with Tesla TSLA from last week at 180 The high for the week ended up coming in at exactly 181 43 before falling after earnings were announced Resistance now stands at 160 and as long as it stays below this stock is likely headed to support at 115 and possibly the 200 day moving average around 105 Taking a look at the Advance Decline line on the NYSE We can see a clean back and fill reaction as it fell back to it s previous two highs for support Let s conclude with the relative performance by sector since the October 9th swing low was put in |
CSCO | Buy Cisco System Inc For Short Term Target 22 22 | Cisco Systems Inc CSCO designs manufactures and sells Internet protocol IP based networking and other products related to the communications and information technology industry and provide services associated with these products and their use Its products are installed at enterprise businesses public institutions telecommunications companies commercial businesses and personal residences The Company operates in three segments The Americas Europe Middle East and Africa EMEA and Asia Pacific Japan and China APJC In July 2013 The Company announced that it has completed the acquisition of Composite Software Inc In October 2013 Cisco Systems Inc completed the acquisition of Sourcefire Inc In October 2013 the Company announced that it has completed the acquisition of privately held WHIPTAIL In December 2013 Cisco Systems Inc completed the acquisition of privately held Insieme Networks Cisco products most notably IP phones and Telepresence are frequently sighted in movies and TV series The company itself and its history was featured in the documentary film Something Ventured which premiered in 2011 Cisco was a 2002 03 recipient of the Ron Brown Award a U S presidential honor to recognize companies for the exemplary quality of their relationships with employees and communities Cisco commonly stays on top of Fortune 100 Best Companies to work for with position No 20 in 2011 CSCO reported 2013 earnings of 2 02 per share on 8 14 13 This beat the 2 01 consensus of the 39 analysts covering the company The Company reported 1st qtr 2014 earnings of 0 53 per share on 11 13 13 This beat the 0 51 consensus of the 35 analysts covering the company Cisco repurchased approximately 84 million shares of common stock under the stock repurchase program at an average price of 23 65 per share for an aggregate purchase price of 2 0 billion during the first quarter of fiscal 2014 The stock trading near its 50 days moving averages its little positive sign for short to medium term CSCO stock creates on semiannual candle stick technical a format of rectangle triangle in a down trend it indicated that short to medium term bullish trend will continue on near main support 20 88 You can see more selling pressure level below 20 46 with strong profit booking if stock breaks its crucial support 20 88 and close in it The stock short term IC green cloud may close around 22 87 If Stock hold on 50 DMA 21 98 then it may hit 22 87 in medium term Short to medium term traders buy near 21 11 with strict SL 20 88 for target 22 22 and 22 87 |
XOM | Exxon Bearish With A Stop 90 | The 1 year old downtrend line will be the first serious barrier for Exxon Mobil Corporation NYSE XOM shares to break in order to turn the tables Breaking below 84 50 triple support will trigger a new leg down Bearish with a stop 90
XOM daily 1 year |
TEVA | 5 Low Price to Book Stocks To Buy In November | In value stock analysis most investors use the P E ratio to search for lucrative stocks but there are other ratios that an investor can consider like price to sales ratio P S and price to book P B ratio The P S ratio is simply price divided by sales One of the reasons price to sales ratio is a better choice is because it looks at sales rather than earnings However the price to book ratio P B ratio though used less often is also an easy to use valuation tool for identifying low priced stocks with great returns The P B ratio is calculated as below P B ratio market price per share book value of equity per shareWhat is Book Value Book value is the total value that would be left over according to the company s balance sheet if it goes bankrupt immediately In other words this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities It is calculated by subtracting total liabilities from the total assets of a company In most cases this equates to common stockholders equity on the balance sheet However depending on the company s balance sheet intangible assets should also be subtracted from the total assets to determine book value Understanding P B RatioBy comparing the book value of equity to its market price we get an idea of whether a company is under or overpriced However like P E or P S ratio it is always better to compare P B ratios within industries A P B ratio less than one means that the stock is trading at less than its book value or the stock is undervalued and therefore a good buy Conversely a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive For example a stock with a P B ratio of 2 means that we pay 2 for every 1 of book value Thus the higher the P B the more expensive the stock But there is a caveat A P B ratio less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated in which case the stock should be shunned because it may be destroying shareholder value Conversely the stock s price may be significantly high thereby pushing the P B ratio to more than one in the likely case that it has become a takeover target a good enough reason to own the stock Moreover the P B ratio isn t without limitations It is useful for businesses like finance investments insurance and banking or manufacturing companies with many liquid tangible assets on the books However it can be misleading for firms with significant R D expenditure high debt service companies or those with negative earnings In any case the ratio is not particularly relevant as a standalone number One should analyze other ratios like P E P S and debt to equity before arriving at a reasonable investment decision Screening ParametersPrice to Book common Equity less than X Industry Median A lower P B compared with the industry average implies that there is enough room for the stock to gain Price to Sales less than X Industry Median The P S ratio determines how much the market values every dollar of the company s sales revenues a lower ratio than the industry makes the stock attractive Price to Earnings using F 1 estimate less than X Industry Median The P E ratio F1 values a company based on its current share price relative to its estimated earnings per share a lower ratio than the industry is considered better PEG less than 1 PEG ratio links the P E ratio to the future growth rate of the company PEG ratio portrays a more complete picture than the P E ratio A value of less than 1 indicates that the stock is undervalued and investors need to pay less for a stock that has bright earnings growth prospects Current Price greater than or equal to 5 They must all be trading at a minimum of 5 or higher Average 20 Day Volume greater than or equal to 100 000 A substantial trading volume ensures that the stock is easily tradable Zacks Rank less than or equal to 2 Zacks Rank 1 Strong Buy or 2 Buy stocks are known to outperform irrespective of the market environment equal to A or B Our research shows that stocks with a Value Score of A or B when combined with a Zacks Rank 1 or 2 offer the best opportunities in the value investing space Here are five of the nine stocks that qualified the screening JinkoSolar Holding Co Ltd NYSE JKS a solar product manufacturer company has a Zacks Rank 2 and a Value Score of A It has a 3 5 year EPS growth rate of 20 You can see Signet Jewelers Limited NYSE SIG a retailer of diamond jewelry watches and other products has a projected 3 5 year EPS growth rate of 6 5 It currently has a Zacks Rank 1 and a Value Score of A SYNNEX Corporation NYSE SNX a business process services provider currently has a Zacks Rank 2 It has a 3 5 year EPS growth rate of 10 4 and a Value Score of A Teva Pharmaceutical Industries Limited NYSE TEVA a leading generic drugmaker currently has a Zacks Rank 2 It has a 3 5 year EPS growth rate of 4 2 and a Value Score of A American Axle Manufacturing Holdings Inc NYSE AXL is a leading supplier of driveline and drivetrain systems modules and components for the light vehicle market The stock currently has a Zacks Rank 2 It has a 3 5 year EPS growth rate of 8 1 and a Value Score of A Get the rest of the stocks on the list and start putting this and other ideas to the test It can all be done with the Research Wizard stock picking and back testing software The Research Wizard is a great place to begin It s easy to use Everything is in plain language And it s very intuitive Start your Research Wizard trial today And the next time you read an economic report open up the Research Wizard plug your finds in and see what gems come out Disclosure Officers directors and or employees of Zacks Investment Research may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material An affiliated investment advisory firm may own or have sold short securities and or hold long and or short positions in options that are mentioned in this material Disclosure Performance information for Zacks portfolios and strategies are available at |
TEVA | Is Teva Pharmaceutical Industries Ltd TEVA A Great Value Stock Right Now | Here at Zacks we focus on our proven ranking system which places an emphasis on earnings estimates and estimate revisions to find winning stocks But we also understand that investors develop their own strategies so we are constantly looking at the latest trends in value growth and momentum to find strong companies for our readers
Of these perhaps no stock market trend is more popular than value investing which is a strategy that has proven to be successful in all sorts of market environments Value investors use a variety of methods including tried and true valuation metrics to find these stocks
On top of the Zacks Rank investors can also look at our innovative Style Scores system to find stocks with specific traits For example value investors will want to focus on the Value category Stocks with high Zacks Ranks and A grades for Value will be some of the highest quality value stocks on the market today
One company to watch right now is Teva Pharmaceutical Industries Ltd NYSE TEVA TEVA is currently sporting a Zacks Rank of 2 Buy as well as an A grade for Value The stock is trading with P E ratio of 3 40 right now For comparison its industry sports an average P E of 8 66 TEVA s Forward P E has been as high as 8 43 and as low as 2 50 with a median of 5 26 all within the past year
TEVA is also sporting a PEG ratio of 0 80 This figure is similar to the commonly used P E ratio with the PEG ratio also factoring in a company s expected earnings growth rate TEVA s PEG compares to its industry s average PEG of 1 76 Within the past year TEVA s PEG has been as high as 7 15 and as low as 0 59 with a median of 1 86
Another valuation metric that we should highlight is TEVA s P B ratio of 0 61 The P B ratio pits a stock s market value against its book value which is defined as total assets minus total liabilities This stock s P B looks solid versus its industry s average P B of 1 15 Over the past year TEVA s P B has been as high as 1 58 and as low as 0 44 with a median of 0 92
These figures are just a handful of the metrics value investors tend to look at but they help show that Teva Pharmaceutical Industries Ltd Is likely being undervalued right now Considering this as well as the strength of its earnings outlook TEVA feels like a great value stock at the moment |
TEVA | Jazz s JAZZ Sleep Drug Sunosi Nears Approval In Europe | Jazz Pharmaceuticals plc NASDAQ JAZZ announced that the European Medicines Agency s EMA Committee for Medicinal Products for Human Use CHMP has adopted a positive opinion recommending approval of its new sleep drug Sunosi solriamfetol The company had submitted a marketing authorization application with the EMA in December 2018 seeking approval for Sunosi to improve wakefulness and reduce excessive daytime sleepiness EDS in adults with narcolepsy with or without cataplexy or obstructive sleep apnea OSA whose EDS has not been satisfactorily treated by primary OSA therapy The positive CHMP opinion was based on positive data from four clinical studies including the TONES study which has demonstrated the superiority of Sunosi over placebo Notably Sunosi was approved by the FDA in March 2019 to improve wakefulness and reduce EDS in adult patients with narcolepsy or OSA The drug is commercially available in the United States in two doses 75 mg and 150 mg tablets The European Commission generally considers the CHMP recommendation while approving a drug but isn t bound by it Meanwhile we are yet to get a clear picture from the early launch phase of the drug in the United States We note that Jazz s blockbuster sleep drug Xyrem is also approved for a similar indication Jazz s shares have gained 11 8 so far this year compared with the s growth of 6 We note that the U S Drug Enforcement Agency has designated Sunosi as a Schedule IV medicine The designation is given to drugs composed of controlled substances or chemicals based on their potential for abuse Meanwhile Xyrem is a Schedule III controlled substance a higher restriction level than Sunosi The distribution of Xyrem is restricted to a single pharmacy under the FDA s risk evaluation and mitigation strategy A lower abuse potential for Sunosi may lead to the mitigation of the risk of dependence on a single pharmacy for distribution leading to wider access to patients Moreover Xyrem will start facing generic competition as early as 2023 Successful commercialization of Sunosi may help the company offset the loss in Xyrem sales We remind investors that the company is also developing a Xyrem follow on product with low sodium content in late stage studies for EDS and cataplexy in narcolepsy patients Meanwhile competition is increasing for Jazz as several companies are developing or marketing treatments for narcolepsy Approved drugs for narcolepsy include Teva Pharma s NYSE TEVA Provigil and Novartis NYSE NVS Ritalin SR Avadel Pharmaceuticals plc NASDAQ AVDL is developing a narcolepsy candidate Jazz Pharmaceuticals PLC Price
Zacks RankJazz currently has a Zacks Rank 1 Strong Buy You can see 7 Best Stocks for the Next 30 DaysJust released Experts distill 7 elite stocks from the current list of 220 Zacks Rank 1 Strong Buys They deem these tickers Most Likely for Early Price Pops Since 1988 the full list has beaten the market more than 2X over with an average gain of 24 5 per year So be sure to give these hand picked 7 your immediate attention |
TEVA | Teva Q4 top line down 16 Copaxone sales down 19 non GAAP earnings down 32 shares down 9 premarket | Teva Pharmaceutical Industries NYSE TEVA Q4 results M Revenues 5 459 15 9 Generics 3 114 16 2 Specialty Medicines 1 795 18 5 U S generics 1 186 15 0 U S specialty meds 1 165 32 1 Copaxone 821 19 1 Net loss 11 600 999 non GAAP net income 1 014 31 5 loss share 11 41 999 non GAAP EPS 0 93 32 6 cash flow ops 1 179 17 3 Goodwill impairments of 17 1B in U S generics business recorded in 2017 2018 guidance Revenues 18 3B 18 8B down 17 2 from 2017 non GAAP EPS 2 25 2 50 Shares are down 9 premarket on robust volume Now read |
TEVA | Premarket Losers as of 9 05 am 2 8 2018 | IRBT 20 after weak guidance IPHI 18 on Q4 earnings GEMP 16 on announcing public offering of common stock MRAM 15 on announcing public offering of common stock NSH 14 on Q4 earnings TEVA 10 on Q4 earnings GOOS 10 on Q3 earnings YELP 7 on Q4 earnings HBI 7 on Q4 earnings MNOV 7 on pricing stock offering at 9 05 Now read |
XOM | Lack of policy hurts Nigeria s economy as Buhari marks 100 days | By Alexis Akwagyiram and Julia Payne LAGOS ABUJA Reuters Nigerian President Muhammadu Buhari has made sweeping changes in the oil sector and armed forces during his first 100 days in office but done little to convince experts that he has a clear strategy for Africa s biggest economy Buhari a former military ruler made Nigerian history in March by becoming the first candidate to defeat an incumbent president at the polls after promising to crack down on corruption and crush a bloody insurgency by the Islamist militant group Boko Haram Revelers in the capital Abuja celebrated his inauguration in May by chanting Sai Baba which means All hail father in the Hausa language of northern Nigeria As Buhari prepares to mark 100 days in office on Saturday his critics are now using the less flattering sobriquet Baba Go Slow Chief amongst their complaints is the 72 year old s decision not to appoint a cabinet until later this month putting the economic policy of the country of 170 million people in limbo and leaving the likes of the central bank to fill the vacuum Buhari s supporters say he has needed time to analyze the inner workings of ministries that have been run exclusively by the People s Democratic Party PDP since the return to civilian rule in 1999 They point to his restructuring of the state oil company NNPC whose board Buhari sacked in June when he appointed an ExxonMobil NYSE XOM executive as managing director Crude oil sales account for around 70 percent of Nigeria s state revenues and NNPC has been accused of failing to account for tens of billions of dollars in the last few years GOVERNMENT BOTTLENECK But a Western diplomat said the last few months in which Buhari has governed alone with briefings by civil servants had caused a bottleneck because he had failed to delegate authority The absence of a cabinet a team has made it hard for him to set out a specific program added the diplomat who did not want to be named Buhari says he found the treasury virtually empty forcing him to deal with inherited problems as his first priority When the ministers are appointed some will constitute an economic team and then formulate a policy Buhari s spokesman Femi Adesina said on Thursday Meanwhile Nigeria s annual GDP growth in the second quarter was less than half that of a year earlier as low oil prices combined with months of uncertainty around the March general elections took their toll The naira has lost around 15 percent in the last year with devaluations in November and February Some people fear another may be coming even though central bank governor Godwin Emefiele has said the currency is appropriately priced In June the Central Bank of Nigeria CBN trying to save reserves announced that importers would no longer be able to secure hard currency on the interbank market to buy items ranging from rice toothpicks and soap to cement and private jets But the resulting shortage of dollars has weakened the naira further The fact that the CBN has been allowed to take steps that look more like fiscal policy decisions is a source of major concern said Muda Yusuf director general of the Lagos chamber of commerce The president doesn t seem to appreciate the enormity of the disruption that the CBN policy on foreign exchange is causing in the economy he said adding that international trade had been hit and some firms had lost their credit lines LITTLE INVESTMENT Others say the lack of direction has also weighed on foreign investment already depressed by a slowdown in China s economy and the prospect of a looming U S interest rate rise What you have is an environment in which there is very little by way of investment happening said Fola Fagbule a Lagos based infrastructure investor focused on Africa Although he has prioritized the oil sector Buhari who is expected to keep the petroleum portfolio for himself when he names his cabinet has so far shied away from scrapping an expensive and fraud ridden fuel subsidy scheme And some moves such as banning around 100 foreign oil tankers from Nigerian waters have been imposed with little or no explanation There is however praise for Buhari s high profile campaign against corruption a recurring problem in Nigerian public life which he estimates has led to 150 billion being stolen from state coffers in the past decade Razia Khan head of Africa research for Standard Chartered bank LONDON STAN said a directive for ministries to start paying revenue earned directly into a single Treasury account was a huge step forward for transparency and one of the successes of Buhari s first 100 days The president has taken a hands on approach to security challenges by replacing defense chiefs and the national security adviser And he has repaired relations with neighboring countries to set up an 8 700 strong regional task force to fight Boko Haram which has killed thousands of people in the northeast since 2009 and driven 1 5 million others from their homes
But the jihadists who scattered after a military counter offensive in the last weeks of president Goodluck Jonathan s administration have nevertheless killed around 800 people in bombings and shootings since Buhari came to power |
XOM | As Pope visit nears U S Catholic Church faces financial strain | By Richard Valdmanis BOSTON Reuters When Pope Francis makes his first visit to the United States this month he will face a national Catholic Church whose finances are staggering under a shrinking membership and huge payouts to sex abuse victims threatening to undermine its social influence With the Church still absorbing the roughly 3 billion cost of a clergy sex abuse scandal another financial crisis is looming a potentially crippling shortfall in funding the pensions of its ageing priests A Reuters review of U S Catholic financial disclosures shows the pension funding shortfall in 2014 likely approached 2 billion with much of that coming due in the next five years as thousands of priests retire The U S Catholic Church has lost millions of its members over the past 14 years following the child abuse scandal that tarnished its reputation and forced it to sell assets to pay billions of dollars in settlements The Church s finances are also under pressure from emptying pews and a demographic shift among Catholics to the U S south and suburbs that has left much of its inner city bricks and mortar underused and bleeding money The financial woes and the destabilizing effect they could have on the Church s social and educational work will be a constant backdrop to the pope s Sept 22 27 visit to Washington New York and Philadelphia Since the pope s election in March 2013 the Vatican has enacted major reforms to clean up its often muddled finances and adhere to international financial standards In June the Vatican appointed its first auditor general and each department s financial statements are now reviewed by an international auditing firm It is basically about poor management on the part of Church leaders And I think the pope is very aware of that said Charles Zeck an economics professor at Villanova a Catholic university in Pennsylvania When he s out there making speeches he ll hit the big topics but this is one issue that is there every day Graphic The financial burden of meeting its pension obligations could take a toll on a U S Church already showing signs of retrenchment forcing it to sell off more assets A Pew Research Center study in May showed the number of self declared U S Catholics at about 52 million down from 55 million in 2007 The number of adults who label themselves former Catholics meanwhile has more than doubled to about 25 million since 2000 and Church attendance has plateaued over the same period according to the Center for Applied Research in the Apostolate CARA at Georgetown University Low donations by parishioners and rising expenditures led 24 percent of U S parishes into the red in 2013 according to a study published in August by the Center for Church Management and Business Ethics at Villanova Cost cutting has contributed to a decline in the number of U S parishes a steep drop in the number of Catholic schools as well as fewer hospitals according to CARA LOOMING CRISIS A review of 51 dioceses that provide detailed financial information showed a clergy pension funding gap of nearly 700 million a figure that does not include other post retirement benefits or obligations to lay staff If the remainder of the roughly 197 dioceses in the United States face similar funding issues the total pension gap would be close to 2 billion Weakening global markets are likely worsening the funding gap since the pensions are typically invested in a mix of equities and treasuries mainly through mutual funds according to the disclosures An official at the U S Conference of Catholic Bishops did not respond to a request for comment Jack Ruhl an accounting professor at Western Michigan University who has been tracking the finances of the Catholic Church since 2004 said that figure is realistic He said his own research showed that more than half of the 61 dioceses that provided audited financial reports for fiscal year 2013 had pension funding levels below 65 percent a threshold the U S Department of Labor would classify as critical if its regulations applied It is a bill that can t be ignored for long More than half of the roughly 17 000 active diocesan priests are expected to retire by 2019 Ruhl said It is a crisis and the only thing the dioceses can do is start finding some funds selling some assets or doing something to fund those liabilities he said Pensions for priests became commonplace in the U S Catholic Church in the 1970s typically funded through donations fundraising drives and in some cases contributions from clergy wages The pensions are generally fairly meager at around 20 000 per year A report issued by non profit group Laity in Support of Retired Priests LSRP last year showed that an average priest s pension and social security benefits are projected to be lower than the cost of living According to LSRP there are about two active diocesan priests for every retired one a ratio that is expected to narrow in the next few years as more priests retire with fewer to replace them GOOD FAITH EFFORT Several dioceses such as Boston New York and Philadelphia have been shoring up their books by clawing back benefits to retired clergy closing down money losing schools selling land merging parishes and organizing fundraising drives Boston for example increased the retirement age to 75 from 70 in 2009 and trimmed pension benefits triggering protests from some priests The archdiocese had a clergy pension funding shortfall of 42 million in 2014 from 60 million in 2009 according to its financial disclosures It seems that Boston has made a really good faith effort They are still hugely underfunded but they are going in the right direction said Ruhl He said Boston like other dioceses had for a time stopped funding the pension to help it cover settlements in abuse cases A Boston archdiocese official declined comment In Philadelphia which has a pension shortfall of about 80 million the archdiocese now requires retirees to refund some of their pensions as payment for living in Church housing Aggressive steps have been taken in recent years to increase funding levels said Robert Bouche the chief financial officer of the archdiocese But he added the pension liability had still worsened in recent years due to assumptions of longer life expectancy Father John Jagodzinski a retired Philadelphia diocesan priest said he was happy with the pension he receives but added some of his fellow retirees have been upset by the clawbacks Other priests declined to comment The Archdiocese of New York meanwhile is in the midst of the biggest reorganization in its history closing dozens of parishes and selling iconic churches due to sliding attendance and a shortage of priests The U S Church does not lack assets A report by The Economist in 2012 estimated the Archdiocese of New York was Manhattan s largest land owner It also said that the U S Catholic Church spent about 170 billion in 2010 five times more than Exxon NYSE XOM Mobil s planned global spending in 2015 But as a non profit organization it tends to spend as much as it brings in meaning unfunded obligations could force it to shrink its operations or holdings Ruhl s 2013 study showed about 10 percent of U S dioceses lost money that year Rich Kelly the head of finance at the Archdiocese of Cincinnati said he has been working for the past seven years to improve funding for the clergy pension program which is underfunded by about 60 million He has cut some retirement benefits launched fundraising drives and switched new priest entrants over to 401ks retirement savings plans that rely heavily on employee contributions
He said the root cause of the crunch was likely decades of decisions made by people untrained in finance It is fine to provide raises for priests and better pensions but without funding that is questionable judgment he said |
MRO | Will Marathon Oil MRO Disappoint Investors In Q2 Earnings | Energy explorer Marathon Oil Corporation NYSE MRO is set to release second quarter 2017 results after the closing bell on Aug 2
In the last reported quarter the Houston TX based company delivered a positive earnings surprise of 12 50 on the back of increased price realizations and cost control initiatives As far as the company s earnings surprise history is concerned it has an impressive record Marathon Oil beat estimates in the last four quarters with an average positive surprise of 20 47
Let s see how things are shaping up for this announcement
Marathon Oil Corporation Price and EPS Surprise
Factors at play
Being an upstream firm weakness in the commodity prices might lower exploration and production activities Oil prices have been falling below the psychologically critical 50 threshold again erasing all the gains associated with the OPEC led output cut The continued rise in domestic production owing to higher shale output has dragged down prices During the second quarter the price of oil and natural gas declined by 8 4 and 5 respectively This might dent the company s earnings and revenues
The year over year decline in production and uncertainty regarding its low cost Libyan operations are also causes of concern Lack of growth opportunities is another threat This also accounts for our bleak earnings outlook for the company
Earnings Whispers
Our proven model does not conclusively show that Marathon Oil is likely to beat earnings estimates this quarter This is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen You can uncover the best stocks to buy or sell before they re reported with our
That is not the case here as you will see below
Zacks ESP Earnings ESP which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate is 15 39 This is because the Most Accurate estimate is pegged at a loss of 15 cents while the Zacks Consensus Estimate is pegged at a loss of 13 cents
Zacks Rank Marathon Oil currently carries a Zacks Rank 4 Sell Note that we caution against Sell rated stocks Zacks Ranks 4 and 5 going into the earnings announcement especially when the company is seeing negative estimate revisions
Stocks to Consider
Here are some companies from the energy sector that according to our model have the right combination of elements to post an earnings beat this quarter
Noble Corporation NYSE NE has an Earnings ESP of 3 03 and a Zacks Rank 3 The company is likely to release earnings on Aug 3 You can see
Enbridge Inc NYSE ENB has an Earnings ESP of 38 24 and a Zacks Rank 3 The company is expected to release earnings on Aug 3
C J Energy Services Inc NYSE CJ has an Earnings ESP of 100 00 and a Zacks Rank 3 The company is expected to release earnings on Aug 8
The Hottest Tech Mega Trend of All
Last year it generated 8 billion in global revenues By 2020 it s predicted to blast through the roof to 47 billion Famed investor Mark Cuban says it will produce the world s first trillionaires but that should still leave plenty of money for regular investors who make the right trades early |
MRO | Marathon Oil MRO Q2 Loss Wider Than Expected Revenues Beat | Houston TX based leading upstream energy firm Marathon Oil Corporation NYSE MRO posted second quarter adjusted loss of 24 cents per share wider than the Zacks Consensus Estimate of a loss of 14 cents Lower than expected production from the U S land markets impacted results The loss was also slightly wider than the year earlier adjusted loss figure of 23 cents Quarterly revenues of 1 059 million surpassed the Zacks Consensus Estimate of 965 million However revenues were down from the prior year figure of 1 103 million Marathon Oil Corporation Price Consensus and EPS Surprise Segmental PerformanceNorth America E P Marathon Oil s North American upstream segment reported a loss of 107 million wider than the year ago loss of 70 million Lower output impacted results Marathon Oil reported production available for sale of 222 000 oil equivalent barrels per day BOE d down from 224 000 BOE d in the second quarter of 2016 The deterioration was mainly due to reduced drilling and completion activities mainly in the Eagle Ford and Bakken Basins The company realized liquids crude oil condensate and natural gas liquids price of 39 00 per barrel higher than the year earlier quarter level of 35 07 per barrel reflecting an increase of 11 2 Natural gas realizations increased 55 6 year over year to 3 05 per thousand cubic feet Mcf International E P The segment s income increased to 59 million compared with the year ago income of 55 million Higher price realizations and increased production boosted profit margin The company reported production available for sale excluding Libya of 127 000 BOE d up from the 120 000 BOE d in the second quarter of 2016 The increase in output in Equatorial Guinea and U K was responsible for growth The company realized liquids price of 37 11 per barrel a 15 6 rise from the year earlier quarter level of 32 11 per barrel Natural gas realizations increased 7 5 year over year to 57 cents per thousand cubic feet Mcf Costs ExpensesMarathon Oil s total quarterly cost and expenses declined by 10 1 to 1 085 million in the reported quarter compared with the prior year figure of 1 207 million The decrease is attributed to the lower exploration production marketing and general administrative costs However the decrease was partially offset by higher depreciation expenses and other operating costs Balance SheetAs of Mar 31 2017 Marathon Oil had cash and cash equivalents of 2 614 million The long term debt of the company was 6 715 million leading to a debt capitalization ratio of 35 1 Production GuidanceMarathon Oil has raised its production guidance for the full year 2017 and expects the production available for sale from the combined North America and International E P segments excluding Libya to average 345 000 360 000 BOE d about 7 higher than 2016 Marathon Oil expects third quarter 2017 North America E P output available for sale in the range of 230 000 240 000 BOE d and International E P excluding Libya output in the range of 115 000 125 000 BOE d Zacks Rank and Key PicksMarathon Oil is a leading exploration and production company with extensive operations across four core regions Africa Middle East Europe and North America The company carries a Zacks Rank 4 Sell Some better ranked players in the energy space include TransCanada Corporation TO TRP Global Partners LP NYSE GLP and Braskem S A NYSE BAK All three firms sport a Zacks Rank 1 Strong Buy You can see TransCanada posted positive average earnings surprise of 4 06 in the preceding four quarters Global Partners delivered positive average earnings surprise of 415 30 in the preceding four quarters Braskem reported positive average earnings surprise of 107 79 in the trailing four quarters More Stock News Tech Opportunity Worth 386 Billion in 2017From driverless cars to artificial intelligence we ve seen an unsurpassed growth of high tech products in recent months Yesterday s science fiction is becoming today s reality Despite all the innovation there is a single component no tech company can survive without Demand for this critical device will reach 387 billion this year alone and it s likely to grow even faster in the future Zacks has released a brand new Special Report to help you take advantage of this exciting investment opportunity Most importantly it reveals 4 stocks with massive profit potential |
CSCO | Retail Rolls Over Price Is Truth And The End Of Summer | It happens every single summer almost like an annual July 4th holiday though it s only for investors who participate in the stock market Last week Wal Mart WT Cisco CSCO and Macy s M reported earnings and the investment community was certainly not impressed Wal Mart s whopping miss of one cent per share along with Cisco s tepid forecast for the rest of 2013 and Macy s future guidance caused the downturn last week as the Dow Jones Industrial Average sold off over 200 points All over Wall Street analysts and strategists are questioning the strength of the domestic consumer for the rest of the year It seems we get this same kind of issue every summer as if this period is not a time where activity naturally slows down On an anecdotal level almost every family we know has been on vacation the past few weeks Yes back to school shopping is in high swing and the summer driving season is hitting its peak as well Still anyone who participates in the business cycle on a consistent basis knows the summer months just are not a rip roaring time Unless of course you reside on Wall Street The 10 year Treasury bond yield keeps advancing higher and is now approaching 3 You would think borrowing costs are incredibly high the way some people are reacting to the dreaded three number Anyone who has some knowledge of financial markets knows current borrowing costs are historically low Until the 10 year bond hits 5 any other conclusion about borrowing costs is just silly However for bond investors the dramatic and quick rise of the 10 year yield brings serious pain as every tick higher in that rate brings additional capital loss The simple lesson is no matter what financial asset an adviser recommends there is always some kind of risk in owning it If ever there was a questionable comparison of companies whose market worth is diverging the current valuations of Tesla TSLA against the large integrated oil companies is shall we say interesting The Elan Musk creation is now priced at a little below 18 billion dollars and will sell below 25 thousand cars this year The largest oil companies in the world are priced between five and ten times earnings trailing or forward you choose and all come with nice dividend yields which could very well increase even dramatically over the next 20 or 30 years Still if you follow these stocks every day TSLA goes up and the oil companies go down Until it changes I continue to hear traders say Price is Truth Tell that to Buffett or in this case the oil companies who have been buying back their own stock One final note I have been very wrong on both Tesla and the oil companies for quite some time so please take my thoughts with a grain of salt The fall swiftly approaches and the joys of football the leaves turning and a little cooler air will be upon us The toxic and noxious fumes coming from Washington regarding the debt limit negotiations also approach as well so if you are concerned about your health or sanity try not to pay too much attention to the windbags At the very least it will be a welcome relief to have the kids in school at least until the first moment they make you help them with their homework The shale oil and gas revolution in the United States for quite some time Another area where the U S continues to lead is in cloud computing which also brings a to both small and large enterprise technology use A on how one CFO is managing growth Disclosure Y H C Investments Yale Bock and the family of Yale Bock own positions in securities mentioned in the blog post Investing in stocks can lead to the complete loss of your capital As always on any company mentioned here past performance is not a guarantee of future returns Investing involves risk of losses on invested capital One should research any investment and make sure it is suitable with your objectives risk tolerance risk profile liquidity considerations tax situation and anything else pertinent to your financial situation Also the CFA credential in no way implies investment returns will be superior for any charter holder |
CSCO | Watch Cisco Support And Resistance | The Cisco CSCO chart is hard to get a good read on There are a lot of existing possibilties but the best way I could find to play it is to watch the two major price levels offering support resistance and wait for them to break at that point you play the gap fills depending on which price level is broken Here s the chart and trade setup in CSCO |
TEVA | AstraZeneca s Fasenra Gets FDA Nod For Self Administration | AstraZeneca plc NYSE AZN announced that the FDA has approved a self administration option for its asthma drug Fasenra benralizumab in a new delivery method a pre filled single use auto injector called the Fasenra pen The FDA approval of the self administration option and the Fasenra pen is supported by data from the phase III GRECO study and the phase I AMES studies The safety and tolerability of Fasenra in these studies were consistent with the known profile of the medicine With the approval Fasenra becomes the only respiratory biologic that offers a convenient option of administering Fasenra at home or in a doctor s office in an 8 week maintenance dosing schedule The self administration option and the Fasenra pen are also approved in the EU Fasenra is currently approved as an add on maintenance treatment for severe eosinophilic asthma in the United States Europe Japan and other countries GlaxoSmithKline s NYSE GSK Nucala and Teva Pharmaceutical Industries NYSE TEVA Cinqair are presently marketed for the same indication Other drugs approved to treat asthma are Novartis NYSE NVS Roche s Xolair and Sanofi Regeneron s Dupixent Fasenra recorded sales of 296 million in the first half of 2019 representing growth of 249 at a constant exchange rate According to AstraZeneca Fasenra enjoys leadership position among novel biologic asthma medicines in the United States and European countries like Germany and Japan Until now Fasenra could be administered at a fixed dose subcutaneous injection via a prefilled syringe once in every eight weeks The approval of the convenient self administration option in the Fasenra pen should raise demand and bring in higher sales Fasenra is also being developed for severe nasal polyposis other eosinophilic diseases and chronic obstructive pulmonary disease COPD However two phase III studies evaluating Fasenra to treat COPD patients did not result in a statistically significant reduction of exacerbations in such patients compared to placebo thereby failing to meet the primary endpoint per data announced in May last year Just Released Zacks 7 Best Stocks for TodayExperts extracted 7 stocks from the list of 220 Zacks Rank 1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of 24 6 per year These 7 were selected because of their superior potential for immediate breakout |
TEVA | Teva s subcutaneously administered reslizumab flunks late stage asthma study shares down 3 premarket | Teva Pharmaceutical Industries NYSE TEVA slips 3 premarket on increased volume in response to its announcement that a Phase 3 clinical trial assessing subcutaneously administered reslizumab failed to achieve the primary endpoint of reducing the frequency of clinical asthma exacerbations in patients with uncontrolled asthma and elevated 300 mcL blood eosinophils A Phase 3 claim support study evaluating subcutaneously reslizumab in patients with oral corticosteroid OCS dependent asthma also failed to meet its primary endpoint of reducing the daily OCS dose The company says it continues to see a treatment effect with the intravenous formulation branded as CINQAIR in the U S and CINQAERO in Europe Now read |
TEVA | Canadian pharmaceutical billionaire couple was murdered police | TORONTO Reuters Canadian pharmaceutical billionaire couple Barry and Honey Sherman were murdered in a targeted killing Toronto police investigators said on Friday in their first detailed comments on the case since the couple s bodies were found on Dec 15 Police said they are treating the case as a double murder but declined to say if they had any suspects The Shermans were found hanging by belts from a railing next to a swimming pool at their Toronto mansion police said Toronto homicide detective Susan Gomes said at a press conference that authorities believed the Shermans were targeted but did not elaborate Police have an extensive list of people we re looking forward to speaking to she said The Sherman family said in a statement that it had expected police would classify the deaths as homicides The family hired a private investigator in late December and conducted an independent autopsy after complaining that police mishandled the case in its early days Citing unnamed police sources multiple news organizations had reported last month that investigators were operating on the working theory that the deaths were a murder suicide Gomes said those reports were wrong and that investigators initially reviewed three possibilities double suicide murder suicide and double homicide Sherman was 75 and his wife was 70 Their deaths stunned the worlds of Canadian business politics and philanthropy and drew public condolences from prominent figures including Canadian Prime Minister Justin Trudeau who attended a memorial service on Dec 21 that was broadcast on television Barry Sherman founded Apotex Inc in 1974 and built it into a pharmaceutical giant before stepping down as chief executive in 2012 He and his wife were known for their donations to hospitals universities and Jewish organizations Separately Apotex said on Friday that its Chief Executive Jeremy Desai had resigned and would be replaced by his predecessor and company co founder Jack Kay Apotex is in a legal dispute with Teva Pharmaceuticals Industries TA TEVA N TEVA the world s biggest maker of generic drugs over allegations that a former Teva executive shared trade secrets with Desai An Apotex representative said Desai s departure was not related to Teva s lawsuit against Apotex
Reuters could not immediately reach Desai for comment |
TEVA | Momenta Pharma sees market launch of Glatopa 40 mg by mid year shares ahead 8 premarket | Momenta Pharmaceuticals NASDAQ MNTA is up 8 premarket on light volume on the heels of its announcement that the FDA has classified its Q4 2017 reinspection of Pfizer NYSE PFE s McPhearson manufacturing site as Voluntary Action Indicated which means that some minor deficiencies were observed but the issues do not warrant further regulatory action The McPhearson site will manufacture Momenta s generic 40 mg version of Teva Pharmaceutical Industries NYSE TEVA top seller Copaxone glatiramer acetate injection The FDA would not approve its ANDA until the issues at the plant were resolved Momenta now believes it will receive U S approval by next quarter It will market its offering under the brand name Glatopa Teva is down 6 premarket on robust volume Previously FDA OK of Momenta s 40mg Glatopa delayed due to compliance issues at manufacturing site shares down 15 Feb 21 2017 Now read |
XOM | Oil bulls hope for quick price dip dimmed by 2020 crude under 70 | By Jonathan Leff HOUSTON Reuters As oil prices entered a second steep slide a few weeks ago bullish traders and analysts had hoped for a repeat of the sharp but short dip that occurred early in the year a speculative slide below 50 a barrel followed by a quick recovery Some are now reconsidering that view as long term oil prices take the lead in the market s latest dive swaying sentiment toward a lengthier slump that would mean prolonged pain for big producers from Exxon Mobil Corp NYSE XOM to Saudi Arabia While immediate delivery benchmark global Brent crude oil futures at 50 a barrel are still about 4 higher than they were at their lowest point in January prices for delivery in December 2020 are nearly 8 lower than the start of this year trading at a contract low of less than 67 on Tuesday A year ago the contract hovered at around 100 a barrel The reason for the deterioration of the forward curve and decline in long dated futures is a subject of debate But even some who disagree with the fundamental logic of lower long dated prices are coming round to the scenario that prices will be lower for longer The back of the market has led prices lower as speculators are no longer convinced higher oil prices are required to balance future oil supply and demand consultants PIRA Energy Group which called last year s price slide but has also predicted a sharp rebound wrote in a note this week The firm does not make its specific forecasts public PIRA disagrees with this view but a show me mindset regarding tightening balances will keep prices lower than forecast earlier Some believe the recent selloff was fueled by speculators fleeing the market amid collapsing confidence after China s stock market crash and exacerbated by a lack of liquidity and resumption of hedging by producers including Mexico which sell futures to guard against lower prices The decline in calendar year 2016 prices has been overstated in our view analysts at Barclays LONDON BARC wrote this week Fundamental tightening demand and stock revisions and current positioning are likely to raise prices in the months ahead Others say it stems from more deeply rooted fundamental factors such as falling production costs in the U S shale patch and expectations of rising exports from Iran next year following a landmark nuclear agreement and if so far forward prices may be flashing warning lights for the future A NEW EQUILIBRIUM The retreat in long term oil prices commenced in the latter part of last year when Saudi Arabia made clear it would no longer cut production in order to tighten up sloppy markets Absent the kingdom s implicit promise to defend prices the value of Brent crude oil for five years in the future slid from nearly 90 a barrel in late November to around 72 almost two months later Over the past month however it has dived anew reaching nearly 66 a barrel on Tuesday its lowest since 2009 Last week analysts at ABN AMRO cut its 2016 oil price forecasts by 10 a barrel on a mix of factors including falling production costs disappointing demand a stronger U S dollar and deteriorating market sentiment What we see is that the U shape recovery which we still expect for oil prices will take longer to materialize Senior Energy Economist Hans van Cleef told the Reuters Global Oil Forum last week The question for oil executives traders and analysts is whether this represents a new equilibrium for the market a price high enough to encourage just enough new production in the future to meet demand which continues to grow Standard Chartered s Paul Horsnell one of the most bullish forecasters in Reuters monthly poll with a projection for 93 Brent in 2017 says no long dated prices are too low although the latest slide may signal a deferred recovery Is this a market transitioning from a view of an inevitable bounce in 2016 to adding another year onto the rebound We just don t know yet said Horsnell And while some big companies such as BP LONDON BP Plc and Royal Dutch Shell LONDON RDSa Plc are preparing investors for a more extended downturn some are still signaling cautious optimism U S focused Anadarko Petroleum Corp NYSE APC for instance is opting not to pursue an aggressive approach to completing shale wells that have been drilled but not yet hydraulically fractured Completing wells more quickly is an option we might choose to pursue if we thought the current environment was going to be protracted and we were somehow in a new normal 50 esque oil environment Chief Financial Officer Bob Gwin told analysts last week
We don t believe that s true over the intermediate to longer term |
CSCO | STTG Market Recap Slow Motion Correction | The slow motion correction continued Wednesday as stocks meandered down slowly most of the session In many ways this market was similar to action we last saw in late winter early spring 2012 when a lot of stocks sold off but Apple rallied which helped keep the damage on the indexes relatively contained That was called the Nothing but Apple market and some hints of that the past few days The S P 500 fell 0 52 and NASDAQ 0 41 We continue to see a divergence between the Apple heavy NASDAQ and the S P 500 After teasing this long term uptrend line in purple for the past week the S P 500 finally closed below it today This calls for even more caution near term There is a wedge type pattern created over the past month as noted in the blue dotted lines if the index breaks below that and stays below it could open things up to a much wider correction Due to the heavy weight of the NASDAQ things look far better there but as we noted yesterday these two indexes are not going to trade independently for long After the close tech bellweather Cisco Systems CSCO announced which is pressuring the stock some 10 in the after hours The stock is in the upper 23s in after hours Cisco s earnings and revenue grew in the latest quarter as demand for its computer networking equipment increased But CEO John Chambers called the global economy challenging and inconsistent and the company said it is cutting about 4 000 jobs or about 5 percent of its work force Cisco s revenue guidance for the current quarter was weaker than Wall Street expected and shares fell sharply in extended trading Cisco Systems Inc earned 2 27 billion or 42 cents per share in the three months that ended on July 27 That s up from 1 92 billion or 36 cents per share a year earlier Adjusted earnings were 52 cents per share in the latest quarter squeaking past Wall Street s expectations by a penny Revenue rose 6 percent to 12 42 billion from 11 69 billion Analysts on average had expected revenue of 12 41 billion according to a poll by FactSet Apple had another strong day as it still basked in yesterday s announcement of a Carl Icahn stake But there was some good sized damage elsewhere one such name was recent momentum favorite TripAdvisor TRIP which announced at a conference than summer business trends had been not up to par With a stock priced to perfection news like this blasted the stock note the huge volume Macy s also on an unexpected decline in sales The retailer said comparable sales and overall sales slid 0 8 percent in the second quarter Analysts expected comparable sales to rise 2 3 percent according to Thomson Reuters It also lowered full year profit targets saying the continuing uncertainty people have about spending on items they do not need in a tough economy is weighing on results In May the retailer warned its budget conscious shoppers were being cautious again |
CSCO | Cisco Beats But Declines Afterhours | Cisco Systems CSCO reported fourth quarter numbers after the bell today EPS came in at 0 49 verse Zacks Consensus Estimate of 0 47 and Revenues of 12 42 billion slightly beat the Zacks Estimate According to Zacks Expected Surprise Predictor ESP there has been a 100 positive analysts agreement over the past 60 days and four consecutive quarters with an average positive surprise of 6 52 the fourth quarter being a positive 4 26 surprise Therefore the ESP model indicated a small but positive surprise for the fourth quarter 2013 The street was concerned with Juniper Networks JNPR and Hewlett Packard HPQ and their recent price discounting Analysts were worried that the new promotions would cut into Cisco s margins Cisco was able to deflect this competition by offering discounts Catalysts Switch Promo UCS discount for new users and WAN Optimization to name a few Chairman and CEO John Chambers stated that My confidence in our ability to be the 1 IT Company is increasing Our fourth quarter was a record on many fronts with record revenue and record non GAAP operating income non GAAP net income and non GAAP earnings per share In every case we exceeded the midpoint of our guidance We also generated 4 billion in operating cash flow in the quarter another record While the Chairman might be high on his company the street is actually disappointed with the results In afterhours trading CSCO is down over 4 Yet Mr Chambers did later concede during analyst s conference call that his company is amidst what continues to be a challenging and inconsistent global macroeconomic environment Moreover the CEO stated that he did not see this changing anytime in the short term Zacks Investment Research will post a detailed earnings report later today |
CSCO | Stocks In A Double Bind | Stocks were in a double bind on Thursday because good news was bad news and bad news was bad news Stocks sank on Thursday while caught in a double bind resulting from the current pre taper of quantitative easing era The rule that good news is bad news applied to the better than expected report on initial unemployment claims which reinforced expectations that the Federal Reserve would begin to taper its bond buying in September because the unemployment situation is improving On the other hand the bad news that the Philly Fed Manufacturing Index and the Empire State Manufacturing Survey both sank was just plain old bad news doing nothing to abate the taper and serving only to hurt stock prices The bearish call from Cisco CEO John Chambers CSCO during his Wednesday afternoon conference call really spooked investors His planned layoff of 4 000 employees apparently did nothing to inspire the pro quantitative easing crowd The explanation by Chambers that emerging market growth has stalled helped fuel the already rising sentiment of risk aversion among investors The Dow Jones Industrial Average DIA lost 225 points to finish Thursday s trading session at 15 112 for a 1 47 percent drop The S P 500 SPY sank 1 43 percent to close at 1 661 The Nasdaq 100 QQQ dropped 1 70 percent to finish at 3 076 The Russell 2000 IWM fell 1 93 percent to end the day at 1 027 In other major markets oil USO advanced 0 39 percent to close at 38 24 On London s ICE Futures Europe Exchange October futures for Brent crude oil advanced by 57 cents 0 52 percent to 109 39 bbl BNO December gold futures advanced by 31 80 2 38 percent to 1 365 20 per ounce GLD Transports ran aground during Thursday s session with the Dow Jones Transportation Average IYT dropping 0 91 percent The Japanese stock market reversed course on Thursday as the exchange rate for the yen rose hurting exporters The yen strengthened to 97 63 per dollar before the closing bell in Tokyo A stronger yen causes Japanese exports to be less competitively priced in foreign markets FXY The Nikkei 225 Stock Average sank 2 12 percent to 13 752 EWJ In China stocks dropped on Thursday with the pharmaceutical sector leading the decline as the result of an investigation into bribery and corruption in the business The Shanghai Composite Index fell 0 87 percent to close at 2 081 FXI Hong Kong s Hang Seng Index dipped 0 01 percent to end the day at 22 539 EWH European stocks had a horrible day as concerns about the potential consequences from the violence in Egypt took center stage while corporate earnings season drew to a close VGK Trading volume was thin as most Europeans are on holiday during August Earnings disappointments were led by Zurich Insurance which sank 3 6 percent as a result of payouts on flood claims causing the company to miss earnings expectations BG Group which relies on Egypt of all places as a source for nearly one quarter of its oil and gas production fell 2 4 percent as the chaos in that nation continues to escalate Apparel giant Hennes Mauritz saw its share price after coming up short at the top line with sales failing to reach expectations The Euro STOXX 50 Index finished Thursday s session with a 0 57 percent drop to 2 835 remaining above its 50 day moving average of 2 700 Its Relative Strength Index is 67 11 FEZ Technical indicators revealed that the S P 500 continued to remain above its 50 day moving average of 1 656 despite finishing Thursday s session with a 1 43 percent drop to 1 661 At this point bears are hoping to see the formation of a head and shoulders pattern on the S P chart There already is a pinhead and shoulders pattern running from the period beginning on July 10 through the present Its Relative Strength Index fell from 52 24 to 40 82 The MACD is below the signal line and both are on a downward trajectory suggesting a continued decline For Thursday all sectors were solidly in negative territory The consumer discretionary sector took the hardest hit sinking 1 75 percent Consumer Discretionary XLY 1 75 Technology XLK 1 61 Industrials XLI 1 12 Materials XLB 0 72 Energy XLE 0 55 Financials XLF 1 47 Utilities XLU 1 27 Health Care XLV 1 68 Consumer Staples XLP 1 60 Bottom line Thursday s good news was bad news and the bad news was worse causing stocks to take a hard fall with increasing fears that the Federal Reserve will taper its bond buying program in September Disclaimer The content included herein is for educational and informational purposes only and readers agree to Wall Street Sector Selector s and before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group LLC |
CSCO | Cisco Sacked | Back on July 19th I did a post for Slope users which stated the following about Cisco It s interesting to me that a company as large as Cisco CSCO even when viewed over years has been trading in such a reliable price range I d suggest that given present price levels as well as the relation of present prices to past conditions this might be an opportunity to take advantage of the potential for weakness ahead either by way of puts or selling the stock short A conservative stop loss price would be 26 32 Well judging from tonight s nearly 10 monkey spanking that s happening with this tech giant I d say the above post was pretty prescient My only error was an overly tight stop which is something I m afraid I am guilty of too often Cisco managed to reach 26 49 seventeen cents higher than my stop but I confess I inched up the stop to stay in position thank goodness In any event this is my biggest individual equity short and I m looking forward to the plunge commencing on Thursday morning I ve indicated after hours trading with the tinted zone below |
XOM | Who Is In Control Of XOM Price | Market Participants Revealed On Stock Charts With oil prices still fluctuating around 45 50 dollars many retail and technical traders have been attempting to sell short big name oil stocks as well as small cap oil stocks Selling short most oil stocks has become a higher risk trade Here is why Professional Traders and Market Makers ask a simple question that most retail traders do not even think about which is Who is in control of price With nine Market Participant Groups and a tenth emerging at this time who is controlling price dictates how traders should approach trading a stock The first chart example below of Exxon Mobil Corporation NYSE XOM shows the conflict between smaller lot sellers either selling short or selling in capitulation versus the large and giant lot institutional and professional traders buying The Buy Side Institutions clearly have control This is seen in the long volume bar and the small resting day aka Doji candle that formed on that day even with extremely high volume Basically the volume for that day doubled over the prior few weeks of volume Indicators confirm that larger and giant lot buyers are buying the stock as smaller lots are selling or attempting to sell short unsuccessfully The Base Bottom is precise with tightly compacted candles and consistent highs and lows What is causing the sudden interest in this stock The second chart example below with a weekly view helps explain what is going on and why This stock has dropped into a prior Dark Pool buy zone which can trigger more buy orders automatically The top was also clearly defined by the extreme peak on MFI and the flat line of Accum Dist as the stock developed the top Summary In order to understand how price will behave in the near term it is important to correctly identify who is controlling price at the time In addition understanding the Market Participant s intent of the trade duration of the hold share size and trading venue also helps clarify price action Although many traders are still assuming that oil prices will plummet further most oil stock charts are indicating that the first bottom attempt is underway Bargain hunters are moving in quietly even while the less informed and smaller lots are continuing to sell Dark Pools prefer to buy into the selling of smaller lots and use this strategy often on extremely oversold stocks |
TEVA | VistaGen s AV 101 Fast Track d in U S for major depressive disorder shares up 11 premarket | Nano cap VistaGen Therapeutics NASDAQ VTGN is up 11 premarket on robust volume on the heels of the FDA granting Fast Track status for lead candidate AV 101 for the adjunctive treatment of major depressive disorder MDD Fast Track status provided for more frequent interactions with the FDA review team and a rolling review of the marketing application A Phase 2 study should commence this quarter AV 101 is an orally available central nervous system CNS prodrug that is converted in the brain by cells called astrocytes into its active metabolite 7 chlorokynurenic acid 7 CI KYNA a highly selective antagonist of certain receptors NMDA that play key roles in neurodegenerative diseases like epilepsy MDD and neuropathic pain Now read |
TEVA | Generex acquires two retail pharmacy operations shares up 26 | Following through on its strategy to establish a footprint in the U S direct to consumer pharmaceuticals business Generex Biotechnology OTCQB GNBT 26 acquires two pre operational retail pharmacy operations Empire State Pharmacy in New York and Grainland Pharmacy in Kansas Both should be fully operational this quarter Financial terms are not disclosed The company says it plans to establish a nationwide presence in the space through its wholly owned subsidiary NuGenerex Distribution Solutions LLC Now read |
TEVA | Teva Pharm directors cut their salaries in half board member | JERUSALEM Reuters The board of directors at Teva Pharmaceutical Industries TA TEVA N TEVA which is reducing its workforce by more than a quarter as part of a global overhaul has taken a 50 percent pay cut a board member said on Wednesday The world s biggest generic drugmaker announced its cost cutting plan last month setting a target to reduce costs by 3 billion by the end of 2019 from about 16 1 billion in 2017 This pay cut that the board took upon itself was done the same day that the cuts and job reductions were discussed board member Dan Suesskind said at the Israel Business Conference in Jerusalem
The Israeli company which is laden with heavy debt said it would reduce its workforce by 14 000 jobs |
XOM | Exxon profit halved by tumbling crude price shares drop | Reuters Exxon Mobil Corp N XOM reported lower than expected second quarter results on Friday as tumbling crude prices halved profit at the world s largest publicly traded oil company Profit at Exxon s exploration and production business fared even more poorly with a profit of 2 billion down sharply from 7 9 billion a year earlier The company s shares fell 2 percent to 81 40 in premarket trading Crude prices in the quarter fell more than 40 percent from a year earlier hit by growing global supplies and worries about slowing demand from China Exxon based in Irving Texas said it earned 4 2 billion or 1 00 per share in the quarter compared with 8 8 billion or 2 05 per share Analysts on average had expected a profit of 1 11 per share according to Thomson Reuters I B E S
Oil and gas output grew 3 6 percent to 4 million barrels oil equivalent per day boed |
MRO | Oil Gas Industry Outlook December 2016 | Crude Oil
We are almost at the last leg of 2016 a year that was marked by unprecedented energy market volatility
The Story So Far
The year started on a disappointing note with crude prices falling to a 12 year low of 26 21 a barrel in Feb as investors worried about the oversupplied market The commodity s collapse threatened the industry s creditworthiness by hurting cash flows drying up liquidity and pummeling producer profit margins
However indications that supply was easing helped oil prices rebound to 50 barrel mark in early Jun The surge was driven by outages in Nigeria Libya Venezuela and Canada countries that hold some of the world s major sources of crude The upward pressure in oil prices also reflected the U S Energy Department s inventory releases that showed crude stockpile builds turning into draws Things were further helped by a continued decline in U S crude production
With factors like Canadian wildfires Nigerian outages disruptions production issues in Venezuela and a strike by Kuwaiti oil workers vanishing from the market oil slipped back under 40 in the first week of Aug A glut of refined products also kept the commodity under pressure
The volatility in oil prices continued with the benchmark touching the 50 threshold again early Oct buoyed by government figures that continued to show large drawdowns while investors betted on commitments by Organization of Petroleum Exporting Countries or OPEC and non OPEC players to slash production targets
When divisions in the cartel became apparent and the future of the ambitious OPEC announcement looked more and more uncertain the commodity fell back under 45 only to receive a booster shot
The OPEC Deal
In a bold but not unexpected move the OPEC cartel agreed on Nov 30 to reduce production starting next month Seen as a desperate bid to put a floor on falling oil prices the group led by Saudi Arabia promised to take 1 2 million barrels a day out of the market
OPEC s decision to cut oil production was not totally surprising though the magnitude of reduction were deeper than many analysts had expected The move aims to trim output to 32 5 million barrels per day at the low end of a preliminary agreement struck in September
Russia which is not part of the body that pumps a third of the world s oil will also join output cuts for the first time in 15 years The biggest supplier outside the bloc relented from its longstanding position of only freezing production and agreed to cut 300 000 barrels from its record high output of more than 10 million barrels a day
Oil Prices Stocks Surge
The OPEC deal had a massive impact on the energy markets sending crude prices back above 50 a barrel While the entire sector is roaring higher since the announcement the independent oil explorers and producers whose revenues are directly associated with crude price have been among the best performing stocks In fact shares of oil finders like Whiting Petroleum Corp WLL Oasis Petroleum Inc OAS and Marathon Oil Corp NYSE MRO have exploded higher and climbed to new multi month highs
Certain Factors Still Linger
Despite OPEC s success in reaching an output deal the oil sector is by no means out of the woods
The commodity is facing heat on several other fronts Perhaps most important pertains to the mounting worries about China s crude demand In particular the Asian giant s currency devaluation has stoked speculation about soft economic growth in the world s No 2 energy consumer
What s more the resilience of North American shale suppliers to keep pumping irrespective of prices and concerns over the effects of Brexit on crude demand means that not much upside is expected in prices in the near term Moreover a stronger dollar has made the greenback priced crude more expensive for investors holding foreign currency Stronger focus on cleaner energy and weakness in industrial production worldwide are also holding back oil consumption
As it is with inventories near the upper limit of the average range for this time of year crude is very well stocked and it still looks like the commodity is in an environment of excess supply Therefore while the OPEC driven rally is likely to drive up prices by a few dollars it certainly can t be termed a seismic event
Our View
In our view crude prices in the next few months are likely to exhibit a sideways to bullish trend mostly trading in the 50 55 per barrel range As North American supply remains strong and demand looks underwhelming oil is likely to maintain its low trajectory throughout at least the first half of 2017
Natural Gas
Over the last few years a quiet revolution has been reshaping the energy business in the U S The success of shale gas natural gas trapped within dense sedimentary rock formations or shale formations has transformed domestic energy supply with a potentially inexpensive and abundant new source of fuel for the world s largest energy consumer
With the advent of hydraulic fracturing or fracking a method used to extract natural gas by blasting underground rock formations with a mixture of water sand and chemicals shale gas production is now booming in the U S Coupled with sophisticated horizontal drilling equipment that can drill and extract gas from shale formations the new technology is being hailed as a breakthrough in U S energy supplies playing a key role in boosting domestic natural gas reserves As a result once faced with a looming deficit natural gas is now available in abundance
Prices Fell to 17 Year Lows Earlier in 2016
With production from the major shale plays remaining strong and the commodity s demand failing to keep pace with this supply surge natural gas prices hit 17 year lows of around 1 6 per million British thermal units MMBtu in the first quarter The glut was further exacerbated by lackluster industrial requirement over the past few years
And Then Recovered Strongly
Since then successive below average builds on the back of warmer temperature across the country followed by the recent start of the withdrawal season has been cutting into the year over year storage surplus Statistically speaking the current storage level at around 4 trillion cubic feet Tcf is up only slightly from last year and is just 6 above the five year average As a result natural gas prices have rebounded strongly and doubled from the extreme lows it hit in Mar The dramatic recovery has helped the commodity stay above the key psychological level of 3 per MMBtu
The price strength has translated into major gains for natural gas weighted firms including the likes of Cimarex Energy Co NYSE XEC XEC Southwestern Energy Co SWN and Range Resources Corp NYSE RRC RRC all Zacks Rank 3 Hold companies which have popped up 50 or more year to date You can see
Long Term Thesis Positive
With the early winter turning out cooler than expected natural gas demand has picked up on the back of elevated power sector consumption due to air conditioning use Coupled with the easing production from the major shale plays natural gas prices are set to rise further
What s more rig count is now languishing below 120 compared to almost 200 a year ago and the high of 1 606 reached in 2008 Therefore production growth is unlikely to resume anytime soon
In general sentiment toward natural gas is likely to become more positive in the near future as speculators bet on a frigid winter to follow the hot summer
What the Zacks Industry Rank Indicates
Oil Energy is one the 16 broad Zacks sectors within the Zacks Industry classification We rank 265 X industries in the 16 Zacks sectors based on the earnings outlook and fundamental strength of the constituent companies in each industry To learn more visit
The oil energy industry is further sub divided into the following industries at the expanded aka X level Oil and Gas Integrated United States Oil and Gas Drilling Oil and Gas Exploration and Production United States Oil and Gas Production Pipeline MLP Oil and Gas Field Services Oil and Gas Integrated International Oil and Gas Production and Pipelines Oil and Gas Mechanical and Equipment Oil and Gas Integrated Canadian and Oil and Gas Refining and Marketing
We put our X industries into two groups the top half industries with the best average Zacks Rank and the bottom half the industries with the worst average Zacks Rank Over the last 10 years using a one week rebalance the top half beat the bottom half by a factor of more than 2 to 1
The Zacks Industry Rank is 39 for Oil and Gas Integrated Canadian 56 for Oil and Gas Mechanical and Equipment 74 for Oil and Gas Drilling 84 for Oil and Gas Exploration and Production United States 95 for Oil and Gas Integrated International 102 for Oil and Gas Integrated United States 145 for Oil and Gas Production and Pipelines 155 for Oil and Gas Production Pipeline MLP 171 for Oil and Gas Refining and Marketing and 176 for Oil and Gas Field Services
Early Q4 Predictions Look Positive
As is the trend over the past few quarters a look back at the Q3 earnings season reflects that the overall results of the Oil Energy sector were again very weak dragging down the aggregate growth picture for the S P 500 index
Unlike the second quarter in which oil advanced more than 26 sequentially to notch up the best quarterly percentage gain in seven years the Jun Sep 2016 period turned out to be rather flat with crude barely advancing In fact the West Texas Intermediate WTI crude futures during the third quarter hovered around the 45 per barrel mark flat with the second quarter and down from 46 50 in the same period last year
Before discussing Q4 2016 quarter estimates let s take a look at this year s Q3 earnings season Earnings fell by a whopping 63 3 year over year following a 79 drop witnessed in the previous quarter Things have been bad on the revenue front too which was down 12 9 in the September quarter after declining 24 4 in the previous three month period
However the picture looks rather encouraging for the upcoming Q4 earnings season This is not surprising considering that oil scored a big jump on the recent OPEC deal that promises a worldwide cut in production With estimate revisions going up the Oil Energy sector s earnings are expected to improve 28 3 from the fourth quarter 2015 levels while the top line is likely to show a growth of 5
For more information about earnings for this sector and others please read our report
The Best Place to Start Your Stock Search
To help you find the most promising stocks in this industry you are invited to download the full list of 220 Zacks Rank 1 Strong Buy stocks absolutely free of charge Since 1988 Zacks Rank 1 stocks have nearly tripled the market with average gains of 26 per year Plus you can access the list of portfolio killing Zacks Rank 5 Strong Sells and other private research |
MRO | Zacks Industry Outlook Highlights Oasis Petroleum Marathon Oil Cimarex Energy Southwestern Energy And Range Resources | For Immediate Release
Chicago IL December 06 2016 Today Zacks Equity Research discusses the Industry Oil Gas including Oasis Petroleum Inc NYSE Marathon Oil Corp NYSE MRO NYSE Cimarex Energy Co NYSE XEC NYSE Southwestern Energy Co NYSE and Range Resources Corp NYSE RRC NYSE
Industry Oil Gas
Link
We are almost at the last leg of 2016 a year that was marked by unprecedented energy market volatility
The Story So Far
The year started on a disappointing note with crude prices falling to a 12 year low of 26 21 a barrel in Feb as investors worried about the oversupplied market The commodity s collapse threatened the industry s creditworthiness by hurting cash flows drying up liquidity and pummeling producer profit margins
However indications that supply was easing helped oil prices rebound to 50 barrel mark in early Jun The surge was driven by outages in Nigeria Libya Venezuela and Canada countries that hold some of the world s major sources of crude The upward pressure in oil prices also reflected the U S Energy Department s inventory releases that showed crude stockpile builds turning into draws Things were further helped by a continued decline in U S crude production
With factors like Canadian wildfires Nigerian outages disruptions production issues in Venezuela and a strike by Kuwaiti oil workers vanishing from the market oil slipped back under 40 in the first week of Aug A glut of refined products also kept the commodity under pressure
The volatility in oil prices continued with the benchmark touching the 50 threshold again early Oct buoyed by government figures that continued to show large drawdowns while investors betted on commitments by Organization of Petroleum Exporting Countries or OPEC and non OPEC players to slash production targets
When divisions in the cartel became apparent and the future of the ambitious OPEC announcement looked more and more uncertain the commodity fell back under 45 only to receive a booster shot
The OPEC Deal
In a bold but not unexpected move the OPEC cartel agreed on Nov 30 to reduce production starting next month Seen as a desperate bid to put a floor on falling oil prices the group led by Saudi Arabia promised to take 1 2 million barrels a day out of the market
OPEC s decision to cut oil production was not totally surprising though the magnitude of reduction were deeper than many analysts had expected The move aims to trim output to 32 5 million barrels per day at the low end of a preliminary agreement struck in September
Russia which is not part of the body that pumps a third of the world s oil will also join output cuts for the first time in 15 years The biggest supplier outside the bloc relented from its longstanding position of only freezing production and agreed to cut 300 000 barrels from its record high output of more than 10 million barrels a day
Oil Prices Stocks Surge
The OPEC deal had a massive impact on the energy markets sending crude prices back above 50 a barrel While the entire sector is roaring higher since the announcement the independent oil explorers and producers whose revenues are directly associated with crude price have been among the best performing stocks In fact shares of oil finders like Oasis Petroleum Inc NYSE andMarathon Oil Corp NYSE have exploded higher and climbed to new multi month highs
Certain Factors Still Linger
Despite OPEC s success in reaching an output deal the oil sector is by no means out of the woods
The commodity is facing heat on several other fronts Perhaps most important pertains to the mounting worries about China s crude demand In particular the Asian giant s currency devaluation has stoked speculation about soft economic growth in the world s No 2 energy consumer
What s more the resilience of North American shale suppliers to keep pumping irrespective of prices and concerns over the effects of Brexit on crude demand means that not much upside is expected in prices in the near term Moreover a stronger dollar has made the greenback priced crude more expensive for investors holding foreign currency Stronger focus on cleaner energy and weakness in industrial production worldwide are also holding back oil consumption
As it is with inventories near the upper limit of the average range for this time of year crude is very well stocked and it still looks like the commodity is in an environment of excess supply Therefore while the OPEC driven rally is likely to drive up prices by a few dollars it certainly can t be termed a seismic event
Our View
In our view crude prices in the next few months are likely to exhibit a sideways to bullish trend mostly trading in the 50 55 per barrel range As North American supply remains strong and demand looks underwhelming oil is likely to maintain its low trajectory throughout at least the first half of 2017
Natural Gas
Over the last few years a quiet revolution has been reshaping the energy business in the U S The success of shale gas natural gas trapped within dense sedimentary rock formations or shale formations has transformed domestic energy supply with a potentially inexpensive and abundant new source of fuel for the world s largest energy consumer
With the advent of hydraulic fracturing or fracking a method used to extract natural gas by blasting underground rock formations with a mixture of water sand and chemicals shale gas production is now booming in the U S Coupled with sophisticated horizontal drilling equipment that can drill and extract gas from shale formations the new technology is being hailed as a breakthrough in U S energy supplies playing a key role in boosting domestic natural gas reserves As a result once faced with a looming deficit natural gas is now available in abundance
Prices Fell to 17 Year Lows Earlier in 2016
With production from the major shale plays remaining strong and the commodity s demand failing to keep pace with this supply surge natural gas prices hit 17 year lows of around 1 6 per million British thermal units MMBtu in the first quarter The glut was further exacerbated by lackluster industrial requirement over the past few years
And Then Recovered Strongly
Since then successive below average builds on the back of warmer temperature across the country followed by the recent start of the withdrawal season has been cutting into the year over year storage surplus Statistically speaking the current storage level at around 4 trillion cubic feet Tcf is up only slightly from last year and is just 6 above the five year average As a result natural gas prices have rebounded strongly and doubled from the extreme lows it hit in Mar The dramatic recovery has helped the commodity stay above the key psychological level of 3 per MMBtu
The price strength has translated into major gains for natural gas weighted firms including the likes of Cimarex Energy Co NYSE Southwestern Energy Co NYSE andRange Resources Corp NYSE all Zacks Rank 3 Hold companies which have popped up 50 or more year to date You can see
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar They re virtually unknown to the general public Yet today s 220 Zacks Rank 1 Strong Buys were generated by the stock picking system that has nearly tripled the market from 1988 through 2015 Its average gain has been a stellar 26 per year
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Past performance is no guarantee of future results Inherent in any investment is the potential for loss This material is being provided for informational purposes only and nothing herein constitutes investment legal accounting or tax advice or a recommendation to buy sell or hold a security No recommendation or advice is being given as to whether any investment is suitable for a particular investor It should not be assumed that any investments in securities companies sectors or markets identified and described were or will be profitable All information is current as of the date of herein and is subject to change without notice Any views or opinions expressed may not reflect those of the firm as a whole Zacks Investment Research does not engage in investment banking market making or asset management activities of any securities These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs These are not the returns of actual portfolios of stocks The S P 500 is an unmanaged index Visit for information about the performance numbers displayed in this press release |
MRO | 5 Best Small Cap Energy Stocks Up 10 Since OPEC s Decision | In a bold but not unexpected move the OPEC cartel agreed on November 30 to reduce production starting next month Seen as a desperate bid to put a floor on falling oil prices the group led by Saudi Arabia promised to take 1 2 million barrels a day out of the market
OPEC s First Output Cut in 8 Years
OPEC s decision to cut oil production was not totally surprising though the magnitude of reduction were deeper than many analysts had expected The move aims to trim output to 32 5 million barrels per day at the low end of a preliminary agreement struck in September
Crude prices which reached 110 per barrel in mid 2014 fell to a 12 year low of 26 21 in Feb on a supply glut amid slowing demand In particular the oil rout alarmed many of the countries whose economies depend on the commodity s exports
A sop to populous big spending oil producers such as Venezuela and Iran the cartel s cutbacks was a mild loss for Saudi Arabia that has been adamant about its continuing strategy to preserve market share by pumping oil almost flat out rather than trying to prop up prices by modifying production limits
Riyadh was forced to soften its stand after it became clear that the kingdom was getting clobbered by its own policies As a result the world s largest crude exporter gave its seal of approval on the cartel s production cut decision the first such attempt since 2008 What s more Saudi Arabia will bear the lion s share of the production cuts to accommodate arch rivals Iran s demands
Riyadh OPEC s largest supplier of oil will trim volumes by nearly a half a million barrels per day while allowing Iran to boost production slightly Another fast growing producer Iraq surprised pundits by pledging to curtail output by 0 2 million barrels per day
Gets Russia to Comply
Russia which is not part of the body that pumps a third of the world s oil will also join output cuts for the first time in 15 years The biggest supplier outside the bloc relented from its longstanding position of only freezing production and agreed to cut 300 000 barrels from its record high output of more than 10 million barrels a day
Oil Prices Stocks Surge
The landmark OPEC deal had a massive impact on the energy markets sending crude prices back above 50 a barrel While the entire sector is roaring higher since the announcement the independent oil explorers and producers whose revenues are directly associated with crude price have been among the best performing stocks In fact shares of oil finders like Whiting Petroleum Corp NYSE WLL Oasis Petroleum Inc NYSE OAS and Marathon Oil Corp NYSE MRO have exploded higher and climbed to new multi month highs
An Opportunity to Build a Position in Energy
While high inventories and robust production could still push the commodity to the low 40s signs are emerging that oil prices are likely to stabilize and gradually pick up Apart from a complete collapse of the agreement there s not many catalysts to reverse the impetus
In fact most market observers see oil s post OPEC rally as the beginning of a sustained increase in prices The cut by OPEC is expected reduce global output and help the oil market come into balance thereby supporting the commodity to break out from the 2 year slump
For investors willing to bet on the revival of crude prices this is the perfect time to build or increase their position in oil related companies However selecting stocks to buy could be a tricky proposition especially with oil prices moving like a roller coaster
The Zacks Methodology
With the help of our one can locate stocks with green shoots In particular we have shortlisted 5 companies that have gone up an impressive 10 or more since the OPEC announcement and have a Zacks Rank 1 Strong Buy or 2 Buy A favorable Zacks Rank indicates that these stocks have been witnessing positive estimate revisions which generally translate into rapid price appreciation You can see
The Small Cap Advantage
To magnify our returns we have opted for small cap stocks Owing to their significant growth potential small cap stocks stocks with a market cap of around 1 billion or below usually tend to outperform their large cap peers over time However these can also be riskier than well known large cap companies Nonetheless the growth potential of small caps is tempting especially given the current economic backdrop of continued strength in the U S dollar and oil price unpredictability
5 Stocks to Invest In
Ocean Rig UDW LLC NASDAQ ORIG Nicosia Cyprus headquartered Ocean Rig mainly provides services related to offshore drilling to the upstream energy players The company s drilling units specialize in operating in harsh environment
Zacks Rank 1
Market Cap 299 25 million
Price Change 1 Week 23 18 OCEAN RIG UDW Price
W T Offshore Inc NYSE WTI An exploration and production company headquartered in Houston TX W T Offshore focuses primarily in U S Gulf of Mexico s shallow water shelf
Zacks Rank 2
Market Cap 287 87 million
Price Change 1 Week 31 25 W T OFFSHORE Price
Sanchez Energy Corp NYSE SN Sanchez Energy is another Houston TX based independent exploration and production company with a primary focus on the Eagle Ford Shale in South Texas
Zacks Rank 2
Market Cap 601 67 million
Price Change 1 Week 25 83 SANCHEZ ENERGY Price
Parker Drilling Co NYSE PKD Also headquartered in Houston TX Parker Drilling is a supplier of contract drilling and drilling related services and rental tools to the worldwide energy industry
Zacks Rank 2
Market Cap 300 13 million
Price Change 1 Week 14 29 PARKER DRILLING Price
Resolute Energy Corp NYSE REN Denver CO based Resolute Energy is an independent oil and gas finder in the U S with primary focus on its core Utah and Wyoming properties
Zacks Rank 2
Market Cap 579 53 million
Price Change 1 Week 13 48 RESOLUTE ENERGY Price
Bottom Line
To sum it up these market beating money minters that are scaling newer heights still appear to have plenty of runway left
Now See Our Private Investment Ideas
While the above ideas are being shared with the public other trades are hidden from everyone but selected members Would you like to peek behind the curtain and view them Starting today for the next month you can follow all Zacks private buys and sells in real time from value to momentum from stocks under 10 to ETF and option moves from insider trades to companies that are about to report positive earnings surprises we ve called them with 80 accuracy You can even look inside portfolios so exclusive that they are normally closed to new investors |
CSCO | Market Movers Internet Security Stocks Get A Boost On Cisco Deal | This morning the S P 500 Index e mini futures ES U3 are trading higher by 2 50 points to 1692 75 per contract Internet security stocks are getting a huge boost after Cisco Systems Inc CSCO agreed to buy Sourcefire Inc FIRE for 2 7 billion FIRE stock is higher by 17 01 to 76 09 a share before the opening bell Some other leading cyber security stocks that are catching a bid in sympathy include Palo Alto Networks Inc PANW Fortinet Inc FTNT and Check Point Software Technologies Ltd CHKP Last night the Shanghai Composite Index China jumped by nearly 2 0 percent after the Chinese Premier Li Keqiang said that China s bottom line for economic growth is 7 0 percent This means there could be more money printing and stimulus by the Chinese Well it was good for a pop in the stock market If the U S markets are strong today traders should watch for early strength in the Market Vectors China ETF Trust PEK and the iShares FTSE Xinhua China 25 Index ETF FXI Below you may find the video |
CSCO | U S Stocks Mixed On Upbeat Earnings | Stocks ended little changed Tuesday with the S P 500 hovering near its break even mark for much of the session after a new measure of manufacturing activity unexpectedly declined Blue chips performed better with the Dow Jones climbing to a new intra day record after component companies E I du Pont de Nemours and Co and United Technologies Corp posted better than expected Q2 earnings Another Dow component The Travelers Cos also beat expectations with its latest quarterly results but finished lower after disclosing plans to revamp its auto insurance unit and laying off 450 workers Traders also appeared willing to maintain existing positions ahead of earnings reports after the close by Apple Inc AAPL and AT T T Shares opened Tuesday s session with moderate gains after Dupont DD reported Q2 EPS of 1 28 topping Wall Street expectations by 0 01 per share The chemicals giant also raised its EPS outlook for FY13 by around 0 35 over its prior forecast now projecting earnings of around 3 85 per share this year Analysts on average are looking for a 3 81 per share gain Solid earnings from Texas Instruments TXN and United Technologies UTX this morning also contributed to the early advance Fed DataBut stocks started to be pressured following release of Richmond Federal Reserve Bank s monthly survey of manufacturing in the mid Atlantic region which fell to a minus 11 reading this month from a revised 7 score in June trailing market expectations for a rise to 8 during July The surprise decline stands in contrast to improving manufacturing conditions in other Fed bank regions including the manufacturing index for New York rising to a five month high while the Philadelphia Fed s index this month hitting a two year high Other economic data appears to have had small impact on stocks The weekly Redbook index found a 3 3 year over year rise in same store sales while the FHFA index of home prices showed an as expected 0 7 increase during May Commodities were mixed Crude oil for September delivery added 29 cents to close at 107 23 per barrel while September natural gas cents rose 7 cents to finish at 3 75 per 1 mln BTU Crude oil iss down 1 35 to 106 70 per barrel Natural gas is up 0 07 to 3 75 per 1 million BTU Gold iss down 4 00 to 1 332 10 an ounce while silver is down 0 21 to 20 30 an ounce Copper is up 0 01 to 3 19 per pound August gold slipped 1 30 to settle at 1 334 70 per ounce Here s Where The Markets Stood At Day s EndDow Jones Industrial Index up 22 19 0 14 to 15 567 74S P 500 down 3 14 0 19 to 1 692 39Nasdaq Composite Index down 21 11 0 59 to 3 579 27GLOBAL SENTIMENTFTSE 100 down 0 09 Hang Seng Index up 2 33 Shanghai China Composite Index up 1 95 UPSIDE MOVERS FIRE Agrees to 2 7 billion buyout by Cisco Systems CSCO LMT Q2 earnings jump 10 company also raises its FY13 earnings outlook IPCI Said its new Rexista pain killer effectively resisted tampering during Phase I testing decreasing the potential for abuse by crushing chewing heating or vaporizing tablets DOWNSIDE MOVERS RSH CEO warns the retailer s may take several quarters after Q2 net loss widens compared to year ago results NFLX New subscription growth trails expectations TRV Shares reverse post earnings gains after CEO discloses plans to cut 140 million from its consumer insurance operations by 2015 and eliminating as many as 450 jobs as early as this week After Hours Stock News From Copyright 2013 MT Newswires a Division of MidnightTrader Inc |
XOM | Review Exxon Mobil s Outlook For Energy | Exxon Mobil NYSE XOM publishes a long term energy outlook which they update annually It s full of interesting facts and charts on energy use and is well worth reading Integrated energy companies like Exxon Mobil commit capital to projects whose payoff can take decades and so they are inevitably in the long term forecasting business The Outlook for Energy provides a perspective on their thinking as well as an interesting snapshot of likely shifts in energy consumption
Globally the number of middle class households defined as having discretionary income to spend beyond basic necessities is the most important input into the demand side Although demographers forecast global population to rise by 2 billion to 9 billion by 2040 more significant for energy demand will be the more than doubling of members of middle class households in just fifteen years from 1 9 billion to 4 7 billion by 2030 according to the Brookings Institution In spite of this The Outlook for Energy anticipates substantially slower rate of actual energy demand as energy intensity the amount of energy required to produce a fixed amount of GDP improves in the developing world to reach present day levels in the U S
Half of the increase in energy demand from Transportation will occur in China and India as a result of which heavy duty use trucks will substantially outpace light duty mainly private automobiles In spite of an expected near doubling in the number of cars of the roads substantial improvements in energy efficiency will result in little overall change in energy demand from this sector
As a result of increased efforts to control pollution CO2 emissions are expected to eventually flatten out and then begin declining over the next 10 15 years Given the uneven nature of such initiatives globally this must be one of the more speculative forecasts
The most significant change in long term supply in recent years is most assuredly the development of tight unconventional oil and natural gas liquids NGLs in North America In just a few years unconventional gas production in North America is likely to exceed the total from the Middle East turning the U S into a significant net exporter within ten years Although coal will continue to be a substantial source of electricity supply through coal burning power stations it has been falling as a percentage of fossil fuels used for many years In fact recently Beijing it would be closing its last coal fired power plant by the end of 2016
Overall The Outlook for Energy provides a useful global long term perspective and highlights America s place evolving role as a producer |
XOM | Houston Home Prices Continue To Defy Oil | Much has been said about the price of oil NYSE USO and Houston I ve spoken about it many times so I ll not go back into it It comes down to supply As long as it stays
This is especially so if you own the two most desirable MPC s in the area Woodlands and Bridgeland and have NYSE XOM moving 10 000 employees and their families right in the middle of them
My presentation of NYSE HHC for those interested
MLS Report for March 2015
HOUSTON HOME SALES CLIMB IN MARCH KEEPING INVENTORY LEVELS DOWN
Prices reach March highs as home buyers gobble up new listings
HOUSTON April 8 2015 After February s decline in sales volume Houston home sales returned to positive territory in March with consumers buying newly listed homes before they ever had a chance to replenish the local housing supply Sales of single family homes rose 3 8 percent year over year in March with most activity taking place among homes priced between 250 000 and 500 000 The high end of the market also had a gain after experiencing its first decline in many months in February
March single family home sales totaled 6 232 units compared to 6 005 a year earlier according to the latest monthly report prepared by the Houston Association of Realtors HAR Buyer demand offset a 7 3 percent increase in new listings keeping inventory levels down Months of inventory the estimated time it would take to deplete the current active housing inventory based on the previous 12 months of sales increased only fractionally to a 2 8 months supply That remains well below the current national supply of 4 6 months of inventory
Home prices achieved record highs for a March The average price of a single family home rose 6 5 percent year over year to 276 837 The median price the figure at which half the homes sold for more and half for less jumped 8 9 percent to 208 000
March sales of all property types totaled 7 564 units up 3 6 percent compared to the same month last year Total dollar volume increased 9 0 percent to 1 9 billion versus 1 8 billion a year earlier
It was great to have sales back in the black in March after February s decline but in order to satisfy the long term needs of the Houston housing market we need to see substantive growth in inventory levels which remain at record lows said HAR Chair Nancy Furst with Berkshire Hathaway HomeServices Anderson Properties It could take the remainder of this year to begin approaching what we consider a balanced market which is typically a five to six month supply of homes
March Monthly Market Comparison
The Houston housing market grew in all categories in March with single family home sales total property sales total dollar volume and pricing all up compared to March 2014
Month end pending sales for all property types totaled 6 004 a 30 6 percent increase versus one year earlier Active listings or the number of available properties at the end of March rose 1 5 percent to 28 507 New listings totaled 9 389 an increase of 7 3 percent However the pace of home buying prevented those new listings from replenishing inventory levels
Houston s housing inventory grew only slightly in March to a 2 8 months supply versus the 2 6 months supply of a year earlier According to the National Association of Realtors the current supply of homes nationally stands at a more robust 4 6 months supply |
TEVA | AstraZeneca s Fasenra Gets Orphan Drug Status For New Disease | AstraZeneca plc s NYSE AZN respiratory biologic Fasenra was granted orphan drug designation ODD by the FDA for a new indication eosinophilic oesophagitis EoE an allergic inflammatory disease of the oesophagus Currently there are no FDA approved treatments for EoE in which the accumulation of eosinophils a type of white blood cell in the esophageal lining tissue results in patients experiencing several debilitating symptoms including severe pain and difficulty in swallowing food Notably the orphan drug designation is granted to drugs capable of treating rare diseases that affect less than 200 000 people in the United States The status makes Fasenra eligible for seven years of marketing exclusivity in the United States if approved for the given indication Shares of AstraZeneca have rallied 18 1 this year so far against the s decrease of 2 1 Fasenra is AstraZeneca s first respiratory biologic and is currently approved as an add on maintenance treatment for severe eosinophilic asthma in the United States Europe Japan and other countries GlaxoSmithKline s NYSE GSK Nucala and Teva Pharmaceutical Industries NYSE TEVA Cinqair are presently marketed for the same indication Fasenra generated sales of 296 million in the first half of 2019 In another press release AstraZeneca announced that a phase III study evaluating its fixed dose triple combination inhaler Breztri Aerosphere PT010 in patients with moderate to very severe chronic obstructive pulmonary disease COPD met the primary endpoint Breztri Aerosphere is a combination of budesonide an inhaled corticosteroid ICS glycopyrronium a long acting muscarinic antagonist LAMA and formoterol fumarate a long acting beta agonists LABA therapy Breztri Aerosphere can be delivered using AstraZeneca s Aerosphere Delivery Technology In the study Breztri Aerosphere showed a statistically significant reduction in the rate of moderate or severe exacerbations the primary endpoint at both standard and low budesonide doses compared with AstraZeneca s own dual combination therapies Bevespi and PT009 in the abovementioned COPD patients who have had a history of exacerbation s in the previous year AstraZeneca stressed that this is the first time that a fixed dose triple combo inhaler has shown benefit at two ICS doses which means a doctor gets the flexibility to select the optimal dose for his patient Breztri Aerosphere was approved in Japan in June for the treatment of COPD Japan marks the first global regulatory approval for Breztri Aerosphere while the candidate is under review in the United States and EU The regulatory filings seeking approval were based on data from the KRONOS study on Breztri Aerosphere which compared it to dual combination therapies Bevespi Aerosphere Symbicort Turbuhaler and PT009 Both ETHOS and KRONOS are part of the ATHENA clinical trial program for Breztri Aerosphere being conducted on more than 15 500 patients globallyAstraZeneca currently carries a Zacks Rank 3 Hold You can see A better ranked large cap pharma stock is Novartis NYSE NVS carrying a Zacks Rank 2 Buy Novartis earnings estimates for 2019 have gone up 1 8 while that for 2020 have increased 0 4 over the past 30 days Novartis stock has returned 4 2 so far in 2019 Looking for Stocks with Skyrocketing Upside Zacks has just released a Special Report on the booming investment opportunities of legal marijuana Ignited by new referendums and legislation this industry is expected to blast from an already robust 6 7 billion to 20 2 billion in 2021 Early investors stand to make a killing but you have to be ready to act and know just where to look |
XOM | Discovery brightens solar s future energy costs to be cut | By Chris Arsenault ROME Thomson Reuters Foundation Scientists in Switzerland announced a clean energy breakthrough on Wednesday a cheaper solar technology that splits water molecules to create clean burning hydrogen fuel The solar panel design will make it cheaper to produce hydrogen but a simple version won t be available for average citizens for at least 10 years scientists said Splitting water molecules to create hydrogen allows the sun s energy to be more easily stored to generate electricity or power clean cars The discovery has major implications for climate change as improved solar energy would reduce fossil fuel dependence Previous solar hydrogen technologies were too expensive to commercialize scientists from the Ecole Polytechnique Federale de Lausanne said in their article appearing in the journal Nature Communications We want to convert solar energy into hydrogen in an economically competitive way Kevin Sivula one of the report s authors told the Thomson Reuters Foundation The technology is a huge increase in efficiency on what s been done before and it opens new pathways for solar development he said The new solar panel looks similar to the traditional version mounted on rooftops except sunlight first passes through a thin layer of water contained inside the device Tungsten diselenide a non toxic chemical acts as a photocatalyst and is critical for using the sun s energy to split water into oxygen and hydrogen Currently about 1 percent of the energy from the sunlight passing through a panel can be converted into hydrogen energy efficiency must increase to about 10 percent for the discovery to have mass commercial appeal Sivula said He estimated that when scientists are able to obtain the same efficiency as traditional solar to hydrogen conversion our cheap device production method would reasonably lead to a price for hydrogen that is five to 10 times less expensive Sivula and his colleagues believe it is only a matter of time and research before the new technology s efficiency is improved The new discovery is part of a larger international push towards improving solar power The global solar index tracked by investors has risen 40 percent this year and investments in solar power are outperforming struggling fossil fuel commodities such as natural gas or coal Oil giant Exxon Mobil NYSE XOM expects solar capacity to grow by more than 20 fold between 2010 and 2040 At the rate we are using fossil fuels a solar to hydrogen conversion technology will eventually become economically viable no matter what Sivula said |
XOM | U N offers help on simmering Guyana Venezuela territorial dispute | By Neil Marks Bridgetown BARBADOS Reuters U N Secretary General Ban Ki moon on Friday offered help to resolve a long running border spat between Venezuela and its South American neighbor Guyana that heated up after oil was found in the disputed area in May Exxon Mobil Corp NYSE XOM said it discovered oil off Guyana s coast spurring complaints from Caracas that Guyana is unfairly exploiting a disputed territory that must be negotiated through a mechanism created via a 1966 treaty signed in Geneva Guyana s new government has attacked a subsequent territorial decree by Venezuelan President Nicolas Maduro as an attempt to annex its waters following the discovery If agreeable I may be dispatching a mission to both countries to find out how and in what way they are interested in UN Good Officer s role Ban said referring to the body s representative on the border dispute Norman Girvan of Jamaica the United Nations envoy to mediate a settlement on the issue died in 2014 and was not replaced Ban was speaking during a summit of the 15 nation Caribbean Community Caricom bloc in Barbados shortly after he met Guyana s new president David Granger We have informed him Ban that the Good Officer s process is more or less exhausted and he has indicated his willingness to appoint a mission to come to Guyana Granger told reporters on the sidelines of the conference where he was hoping to get backing from fellow Caribbean countries The U N boss gave no time frame for sending teams to the two countries though Granger said he expected them to move quickly Ban said his chief of staff was due to meet with Venezuelan Foreign Minister Delcy Rodriguez later on Friday to get the green light on sending a mission The sparsely populated and dense jungle area known as the Essequibo encompasses an area equivalent to around two thirds of Guyanese territory It functions in practice as part of Guyana and shows no discernable trace of Venezuelan influence Guyana says Caracas agreed to relinquish the Essequibo following a ruling by an international tribunal in 1899 but that Venezuela later backtracked on that decision
Venezuela says the 1899 ruling was unfair and insists the territory is still in dispute Maps in Venezuela usually describe the Essequibo as the reclamation zone |
XOM | Venezuela recalls ambassador to Guyana amid territory dispute | CARACAS Reuters Venezuelan President Nicolas Maduro on Monday said he was calling in the country s ambassador in neighboring Guyana for consultations amid an escalating row over oil exploration in a disputed offshore territory The OPEC nation in June demanded that Guyana halt exploration being carried out by Exxon Mobil Corp NYSE XOM off the coast of the region known as the Essequibo weeks after Exxon said it had found oil It takes a lot of patience to process digest and not vomit when one reads and hears the statements against Venezuela by the current president of Guyana Maduro said in a speech to parliament dedicated to the issue He also ordered the foreign ministry to conduct a full review of bilateral relations He ruled out the possibility of armed conflict but described recently elected Guyanese President David Granger as a hostage of Exxon Mobil Exxon consulted about the issue in the past has said its policy is to follow host countries and international law and that border conflicts are a matter for governments to resolve U N Secretary General Ban Ki moon on Friday offered to help resolve the dispute The Essequibo a sparsely populated region of thick jungle encompasses an area equivalent to around two thirds of Guyanese territory It functions in practice as part of Guyana and shows no discernible trace of Venezuelan influence according to visitors to the area Guyana says Caracas agreed to relinquish the Essequibo following a ruling by an international tribunal in 1899 but that Venezuela later backtracked on that decision
Venezuela says the 1899 ruling was unfair and insists the territory is still in dispute Maps in Venezuela usually describe the Essequibo as the reclamation zone |
MRO | What s In The Cards For Marathon Oil MRO In Q3 Earnings | Leading upstream energy firm Marathon Oil Corp NYSE MRO is set to release third quarter 2016 results after the closing bell on Wednesday Nov 2 In the preceding three month period the Houston TX based company delivered a positive earnings surprise of 4 17 The better than expected results was driven by the company s cost control initiatives As far as the earnings surprise history is concerned the company has an excellent record Marathon Oil beat estimates in each of the last four quarters with an average positive surprise of 17 27 Let s see how things are shaping up for this announcement Factors to Consider This QuarterMarathon Oil is a leading energy firm with a large and geographically diverse reserve base and solid project pipeline Additionally its healthy balance sheet helps it to capitalize on investment opportunities We expect such factors to have a positive impact on the upcoming earnings Marathon Oil s strategic initiatives such as cost reduction exercise of capital discipline efficiency gains and consistent execution of projects have had a positive impact on the company s financials The positives are reflected in the company s narrower than expected second quarter loss The improving trend is likely to continue in the third quarter as well MARATHON OIL CP Price and EPS Surprise Moreover the company s total quarterly cost and expenses decreased 22 to 1 454 million in the last quarter We expect the company to perform well on the cost front in the to be reported quarter as well However Marathon Oil s decision to cut its capital expenditure by half will lead to production decline Though exploration expenses will be limited the company will only spend on completing existing projects internationally Despite recovering from multi year lows both oil and natural gas prices are below year ago levels This is likely to adversely affect the company s profitability Earnings WhispersOur proven model does not conclusively show that Marathon Oil will beat estimates this quarter That is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold to be able to beat consensus estimates That is not the case here as you will see below Zacks ESP Earnings ESP which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate is 0 00 This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at a loss of 19 cents Please check our that enables you to find stocks that are expected to come out with earnings surprises Zacks Rank MarathonOil has a Zacks Rank 3 Though a Zacks Rank 3 increases the predictive power of ESP the company s ESP of 0 00 makes surprise prediction difficult We caution against Sell rated stocks Zacks Ranks 4 and 5 going into the earnings announcement especially when the company is seeing negative estimate revisions Stocks to ConsiderWhile earnings beat looks uncertain for Marathon Oil here are some domestic upstream you may want to consider on the basis of our model which shows that they have the right combination of elements to post earnings beat this quarter CONE Midstream Partners LP NYSE CNNX is expected to release third quarter earnings results on Nov 4 The partnership has an Earnings ESP of 2 70 and a Zacks Rank 1 You can see CSI Compressco LP NASDAQ CCLP has an Earnings ESP of 27 27 and a Zacks Rank 3 The company is anticipated to release third quarter earnings on Nov 4 Archrock Partners L P NASDAQ APLP has an Earnings ESP of 8 33 and a Zacks Rank 1 The company is likely to release third quarter earnings on Nov 1 Confidential from ZacksBeyond this Analyst Blog would you like to see Zacks best recommendations that are not available to the public Our Executive VP Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand |
CSCO | Cicso Ready To Break Through | The last time Cicso CSCO was a popular stock this song was hitting its stride But following the Dot com crash it has been in a rut trading nearly exclusively between 12 and 26 for 10 years Many are excited about large cap tech companies now though and with their earnings report last week Cisco jumped 12 6 Thursday Could it be time to break that channel Let s take a look The daily chart above shows that heading into earnings it was stalling near completion of a bearish Butterfly but also trying to break above a Diamond Consolidation The Diamond prevailed and the move Thursday to 23 89 is still short of the target of 25 40 on the pattern break The gap up leaves a big open window below and with the Relative Strength Index RSI now technically overbought but the Moving Average Convergence Divergence indicator MACD is rising and the volume was huge With some consolidation in this area the RSI can work off and it will look attractive But what about a longer term scale The monthly chart below looks good It is moving out of consolidation higher and over the Simple Moving Averages SMA with the MACD starting to rise These are all positives for the stock The RSI is rising as well It still has the hurdle at 26 and then 32 50 to get over before you can set it and forget it but it is looking up Over that 32 50 area and the upside targets move higher very quickly with 53 40 and then 67 Maybe the Cisco Kid will be your friend again soon The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my page for my full disclaimer |
XOM | Exxon Technical Preview Trend Is Negative | Exxon Mobil Corporation NYSE XOM shares doing just fine considering how much crude oil price has fallen in the last months The trend is negative though and price is likely to test support from 2 years ago around 80 A close above last week s high 86 37 would change the short term momentum into positive XOM weekly 3 years |
XOM | Exxon Bearish Flag Forming At 1 5 Year Lows | Exxon Mobil Corporation NYSE XOM shares find resistance at their 20 DMA This formation looks like a bearish flag at 1 5 year lows Negative daily trend speaks for high probability of testing the 2 year low around 80 A close above 86 could change the short term momentum into positive XOM daily 2 months |
TEVA | Teva s Q2 Earnings May Show Litigation Complicating Growth Revival | Reports Q2 2019 results on Wednesday Aug 7 before the open
Revenue expectation 4 25 billion
EPS expectation 0 57
The drastic plunge in Teva Pharma NYSE TEVA shares this year shows that the worst is far from over for the world s largest generic drug maker And there s little chance its second quarter earnings tomorrow will help build the case for a quick revival
Since the company announced its Q1 earnings in May investors focus has shifted from CEO Kare Schultz s turnaround efforts to a new antitrust litigation by U S states that puts Teva at the center of an alleged price fixing conspiracy
The lawsuit filed by more than 40 states in early May accuses Teva of colluding with a core group of competitors to follow each other s price increases During a 19 month period from 2013 to 2015 Teva significantly raised prices on about 112 generic drugs and colluded with its competitors on at least 86 medicines the states said
According to Morgan Stanley Teva is one of the large drug makers which face heightened litigation risks related to its involvement in the U S opioid crisis and state governments actions against drug makers and distributors
The risks of regulatory action and the possibility of a large fine mean Teva shares could remain depressed even if the turnaround efforts of Schultz begin to show results After losing half of their value in the past three months Teva shares were trading at 7 84 on Monday having sunk 0 3 through the session
Deep Slump
Teva is trying to recover from a deep slump started in the summer of 2015 that sent its shares tumbling as the company invested heavily to grow its copycat medicines business That happened at a time when margins began to shrink in the U S amid fierce competition from other pharma producers
The biggest setback came when Teva lost its monopoly on Copaxone a blockbuster multiple sclerosis injection that at one point generated half of Teva s profits That setback pushed Teva into a debt trap raising doubts about its ability to repay its massive loans
Analysts consensus forecast for profit and sales for the Q2 shows that deceleration in revenue hasn t reached its bottom During tomorrow s release Teva is likely to report its profit fell to 0 57 a share from 0 78 a share from the year ago period while sales to shrank 10 to 4 25 billion according to analysts average estimate
Despite the outlook clouded by the litigation there are signs that Schultz is on track to hit some of his restructuring targets Teva has cut 2 5 billion of costs since Schultz took over closing in on the target he set for the company for the end of the year And at the same time the market for knockoff medicines is stabilizing after years of declines in profit margins
Teva s robust pipeline of new drugs is another bright spot The recent approval of its next generation migraine medication Ajovy has so far not created much excitement but this drug has a great future and could bring in a significant new revenue stream in the next two to three years
Teva s Huntington s disease medicine Austedo could also prove another big revenue generator which would help the drugmaker arrest the slide in its sales Austedo s peak sales are forecast to reach as high as 1 3 billion within the next three years
Bottom Line
Teva is still very much a risky turnaround bet for those who have the patience to hold its stock through this highly challenging operating environment and its future outlook has become murkier after the new antitrust lawsuit Any sign of improvement in the company s top line growth and the success of cost cutting efforts could produce a relief rally now that the shares have taken such a massive beating |
TEVA | Teva TEVA Beats Q2 Earnings Sales Estimates Shares Rise | Israel based Teva Pharmaceutical Industries Ltd NYSE TEVA is a global pharmaceutical company with a strong presence in the generics as well as branded markets The company s branded products include Copaxone multiple sclerosis Austedo chorea associated with Huntington s disease and tardive dyskinesia and respiratory products like Qvar Teva is facing significant challenges in the form of accelerated generic competition for Copaxone new competition for branded products pricing erosion in the U S generics business and a massive debt load However it has made impressive progress on restructuring activities and has a more stable financial position than before However we believe the company has a long way to go before it gains stability Teva s earnings surpassed expectations in three the last four reported quarters with the average positive surprise being 9 54 Currently TEVA has a Zacks Rank 3 Hold but that could definitely change following the company s earnings report which was just released You can see We have highlighted some of the key stats from this just revealed announcement below Earnings Beat Teva s second quarter earnings came in at 60 cents per share which beat the consensus estimate of 58 cents Revenues Beat Teva posted revenues of 4 34 billion which beat the consensus estimate of 4 26 billion Sales declined 8 down 5 in constant currency terms year over year Key Statistics North America segment sales were 2 07 billion down 8 year over year due to lower sales of Copaxone as well as Bendeka Treanda In the United States revenues declined 10 year over year to 1 93 billion Lead branded product Copaxone posted sales of 274 million in North America down 41 year over year due to generic competition in the United States Qvar sales rose 103 to 60 million in the quarter ProAir sales declined 44 year over year to 65 million Generic products revenues were flat to 946 million in the quarter as additional sales from the launch of generic products made up for price erosion in the U S business The Europe segment recorded revenues of 1 18 billion down 11 down 5 in constant currency terms year over year In the International Markets segment sales declined 6 down 2 in constant currency terms to 741 million 2019 Outlook Maintained Teva re affirmed its previously issued guidance for sales and earnings in 2019 The company expects revenues to be in the range of 17 17 4 billion Meanwhile the earnings guidance lie in a band of 2 20 2 50 per share Share Price Impact Shares were up more than 1 in pre market trading Teva Pharmaceutical Industries Ltd Price and Consensus
Check back later for our full write up on this TEVA earnings report later This Could Be the Fastest Way to Grow Wealth in 2019Research indicates one sector is poised to deliver a crop of the best performing stocks you ll find anywhere in the market Breaking news in this space frequently creates quick double and triple digit profit opportunities These companies are changing the world and owning their stocks could transform your portfolio in 2019 and beyond Recent trades from this sector have generated 98 119 and 164 gains in as little as 1 month |
TEVA | Should Value Investors Pick Teva Pharmaceutical TEVA Now | Value investing is easily one of the most popular ways to find great stocks in any market environment After all who wouldn t want to find stocks that are either flying under the radar and are compelling buys or offer up tantalizing discounts when compared to fair value One way to find these companies is by looking at several key metrics and financial ratios many of which are crucial in the value stock selection process Let s put Teva Pharmaceutical Industries Limited NYSE TEVA stock into this equation and find out if it is a good choice for value oriented investors right now or if investors subscribing to this methodology should look elsewhere for top picks PE RatioA key metric that value investors always look at is the Price to Earnings Ratio or PE for short This shows us how much investors are willing to pay for each dollar of earnings in a given stock and is easily one of the most popular financial ratios in the world The best use of the PE ratio is to compare the stock s current PE ratio with a where this ratio has been in the past b how it compares to the average for the industry sector and c how it compares to the market as a whole On this front Teva Pharmaceutical has a trailing twelve months PE ratio of 2 64 as you can see in the chart below This level actually compares pretty favorably with the market at large as the PE for the S P 500 stands at about 17 53 If we focus on the long term PE trend Teva Pharmaceutical s current PE level puts it below its midpoint over the past five years Further the stock s PE compares favorably with the Zacks Medical sector s trailing twelve months PE ratio which stands at 20 01 At the very least this indicates that the stock is relatively undervalued right now compared to its peers We should also point out that Teva Pharmaceutical has a forward PE ratio price relative to this year s earnings of just 2 65 which is tad higher than the current level So it is fair to expect an increase in the company s share price in the near term P S RatioAnother key metric to note is the Price Sales ratio This approach compares a given stock s price to its total sales where a lower reading is generally considered better Some people like this metric more than other value focused ones because it looks at sales something that is far harder to manipulate with accounting tricks than earnings Right now Teva Pharmaceutical has a P S ratio of about 0 38 This is lower than the S P 500 average which comes in at 3 11 right now Also as we can see in the chart below this is below the highs for this stock in particular over the past few years If anything TEVA is in the lower end of its range in the time period from a P S metric suggesting some level of undervalued trading at least compared to historical norms Broad Value Outlook In aggregate Teva Pharmaceutical currently has a Zacks Value Score of A putting it into the top 20 of all stocks we cover from this look This makes Teva Pharmaceutical a solid choice for value investors and some of its other key metrics make this pretty clear too For example the P CF ratio comes in at 1 36 which is lower than the industry average of 3 63 Clearly TEVA is a solid choice on the value front from multiple angles What About the Stock Overall Though Teva Pharmaceutical might be a good choice for value investors there are plenty of other factors to consider before investing in this name In particular it is worth noting that the company has a Growth Score of F and a Momentum Score of B This gives TEVA a Zacks VGM score or its overarching fundamental grade of B You can read more about the Zacks Style Scores Meanwhile the company s recent earnings estimates have been disappointing The current year has seen four estimates go higher in the past sixty days compared to six lower while the full year 2020 estimate has seen three upward revision compared to six downward in the same time period This has had a negative impact on the consensus estimate though as the current year consensus estimate has decreased by 0 4 in the past two months while the full year 2020 estimate has inched down by 1 6 You can see the consensus estimate trend and recent price action for the stock in the chart below Teva Pharmaceutical Industries Ltd Price and Consensus Despite the bearish analyst sentiments the stock holds a Zacks Rank 3 Hold Thus we are looking for in line performance from the company in the near term Bottom Line Teva Pharmaceutical is an inspired choice for value investors as it is hard to beat its incredible line up of statistics on this front A strong industry rank among top 24 of more than 250 industries further instils our confidence However a Zacks Rank 3 makes it hard to get too excited about this company overall In fact over the past two years the Zacks Medical Generic Drugs industry has clearly underperformed the market at large as you can see below So value investors might want to wait for estimates analyst sentiment and industry trends to turn around in this name first but once that happens this stock could be a compelling pick Today s Best Stocks from ZacksWould you like to see the updated picks from our best market beating strategies From 2017 through 2018 while the S P 500 gained 15 8 five of our screens returned 38 0 61 3 61 6 68 1 and 98 3 This outperformance has not just been a recent phenomenon From 2000 2018 while the S P averaged 4 8 per year our top strategies averaged up to 56 2 per year |
TEVA | BeiGene s NDA For Zanubrutinib Gets Priority Review From FDA | Chinese biotech company BeiGene Ltd NASDAQ BGNE announced that the FDA has accepted and granted priority review designation to its new drug application NDA for its cancer candidate zanubrutinib A decision from the FDA is expected by Feb 27 2020 The NDA is seeking approval for zanubrutinib as a treatment for patients with mantle cell lymphoma MCL an aggressive form of lymphoma in second or later line settings In January the candidate was granted Breakthrough Therapy designation for the same indication Notably FDA s Breakthrough Therapy designation is granted to speed up the development and review of drugs that target serious or life threatening conditions The NDA was filed based on data from a pivotal phase II study in relapsed or refractory MCL patients and phase I II study in patients with B cell lymphomas A glimpse of BeiGene s price trend so far this year reveals that it has gained 4 2 against the s 1 1 decline Data from the phase II study showed that treatment with zanubrutinib achieved overall response rate the study s primary endpoint of 83 7 with complete response achieved in 77 9 of patients after a follow up period of 18 4 months Median progression free survival PFS achieved in the study was 19 1 months with approximately 72 1 patients achieving 15 months of PFS Meanwhile data from the phase I II showed that zanubrutinib was well tolerated and highly active in patients with MCL BeiGene is also developing zanubrutinib in several other lymphoma indications A late stage study is evaluating the candidate in combination with Teva s NYSE TEVA Treanda bendamustine plus Roche s OTC RHHBY Rituxan rituximab in patients with treatment naive chronic lymphocytic leukemia CLL or small lymphocytic lymphoma SLL Zanubrutinib is already under review for r r MCL and CLL SLL indications in China Apart from zanubrutinib BeiGene is developing an anti PD 1 antibody tislelizumab in multiple oncology indications including non small cell lung cancer in first and later line settings Moreover the company is developing a PARP inhibitor pamiparib for treating ovarian cancer Currently BeiGene generates revenues from the sales of cancer drug Abraxane Revlimid and Vidaza in China under a distribution license from Celgene NASDAQ CELG BeiGene Ltd Price Zacks RankBeiGene currently carries a Zacks Rank 3 Hold You can see It s Illegal in 42 States But Investors Will Make Billions LegallyIn addition to the companies you read about above today you get details on the newly legalizedindustry that s tapping into a habit that Americans spend an estimated 150 billion on every year That s twice as much as they spend on marijuana legally or otherwise Zacks special report revealing how investors can profit from this new opportunity As more states legalize this activity the industry could expand by as much as 15X Zacks has just released a Special Report revealing 5 top stocks to watch in this space |
TEVA | Significant action needed to steady company Teva | In a letter to the Israeli parliament Teva Pharmaceutical Industries NYSE TEVA said it needs to take significant and comprehensive actions to secure its future A government committee called an emergency meeting to discuss media reports that the company was planning major job cuts to shore up its finances Shares are up a fraction premarket Source ReutersNow read |
TEVA | Stocks U S Futures Rise Ahead of Fed Confirmation Hearing | Investing com U S futures edged higher on Tuesday as investors wait for the confirmation hearing of Fed Governor Jerome Powell
The S P 500 futures inched forward two points or 0 09 as of 6 51 AM ET 11 51 AM GMT while Dow futures rose 38 points or 0 16 Meanwhile tech heavy Nasdaq 100 futures increased three and a half points or 0 05
Fed Governor Jerome Powell who was nominated by U S President Donald Trump to lead the Federal Reserve is set to appear before the Senate Banking Committee at 9 45AM ET 2 45 PM GMT for his confirmation hearing Investors will be listening for clues as to how he will lead the central bank
Investors have also turned their attention to the tax reform bill with Trump expected to discuss the bill with Senate Republicans at their weekly luncheon The Senate is expected to vote on the highly anticipated bill on Thursday Republicans are rushing to pass a tax bill before the end of the year which could include cutting corporate taxes to 20 from 35
Oil companies were among the biggest gainers in pre market trading BP LON BP PLC ADR NYSE BP oil firm rose 0 99 while Royal Dutch Shell LON RDSa PLC ADR NYSE RDSa increased 2 94 after it restored its all cash dividend Meanwhile pharmaceutical firm Teva Pharma Industries Ltd ADR NYSE TEVA rose 1 85
Elsewhere Lloyds Banking Group LON LLOY PLC ADR NYSE LYG slipped 1 98 despite passing the Bank of England s stress test while Marathon Patent Group Inc NASDAQ MARA a cryptocurrency player slumped 26 88 after surging nearly 10 in trading on Monday
Meanwhile in Europe stocks rose Germany s DAX surged 42 points or 0 33 while in France the CAC 40 increased 33 points or 0 63 and in London the FTSE 100 rose 47 points or 0 65 Meanwhile the pan European Euro Stoxx 50 inched forward 17 points or 0 49 while Spain s IBEX 35 was up 46 points or 0 46
In commodities gold futures rose 0 01 to 1 294 49 a troy ounce while crude oil futures slipped 1 00 to 57 53 a barrel The U S dollar index which measures the greenback against a basket of six major currencies rose 0 12 to 92 96 |
TEVA | Stocks U S Futures Point to Higher Opening Ahead of GDP Yellen Testimony | Investing com Wall Street was set to open higher on Wednesday as investors wait for Federal Reserve Chair Janet Yellen s last congressional testimony
The S P 500 futures inched forward three and a half points or 0 13 as of 6 42 AM ET 11 42 AM GMT while Dow futures rose 77 points or 0 32 Meanwhile tech heavy Nasdaq 100 futures increased seven points or 0 11
Yellen is expected to testify on the outlook of the U S economy before the Congressional Joint Economic Committee It s her last testimony before she leaves as head of the central bank in February
Banking stocks were up in pre market trading Lloyds Banking Group LON LLOY PLC ADR NYSE LYG surged 2 56 while Banco Santander MC SAN SA ADR NYSE SAN increased 0 75 Telecommunications firm Nokia HE NOKIA rose 0 99 and pharmaceutical firm Teva Pharma Industries Ltd ADR NYSE TEVA jumped 1 43
Elsewhere financial services firm ING Group NV ADR NYSE ING fell 0 44 and Chinese education firm RYB Education Inc NYSE RYB slipped 8 85 amid child abuse allegations at a Beijing school
U S gross domestic product data is set for release at 8 30 AM ET 1 30 PM GMT which investors will be watching to see if the American economy has strengthened A stronger economy could give the Fed reason to increase interest rates into 2018
Meanwhile investors are awaiting a vote on the tax reform bill which could happen this week On Tuesday the Senate Budget Committee approved the Senate s tax plan bringing it closer to a floor vote Doubts remain however on whether Congress can pass the bill before the end of the year
Stocks in Europe were mixed Germany s DAX surged 123 points or 0 96 while in France the CAC 40 increased 38 points or 0 71 and in London the FTSE 100 slipped 42 points or 0 57 Meanwhile the pan European Euro Stoxx 50 inched forward 27 points or 0 76 while Spain s IBEX 35 was up 132 points or 1 31
In commodities gold futures inched down 0 04 to 1 294 41 a troy ounce while crude oil futures slipped 0 45 to 57 73 a barrel The U S dollar index which measures the greenback against a basket of six major currencies was flat at 93 20 |
TEVA | Teva considering cutting up to 10 000 jobs Bloomberg | Reuters Teva Pharmaceutical Industries Ltd TA TEVA N TEVA the world s largest maker of generic drugs is considering cutting up to 10 000 jobs Bloomberg News reported on Friday
Israel based Teva wants to cut costs by 1 5 billion to 2 billion over the next two years Bloomberg said citing people with knowledge of the matter |
TEVA | Stocks Wall Street Set for Higher Opening as Bitcoin Futures Surge | Investing com U S futures pointed to higher opening on Monday as investors look to bitcoin futures
The S P 500 futures was up two points or 0 08 as of 6 48 AM ET 11 48 GMT while Dow futures increased 48 points or 0 20 Meanwhile tech heavy Nasdaq 100 futures rose seven points or 0 12
Bitcoin will be on investors minds today after the cryptocurrency started trading on the CBOE Futures Exchange on Sunday The new Bitcoin Futures surged over 20 within hours of launching causing a temporary outage to the trading website The futures price has already surged over 17 000
Chinese e commerce firm Alibaba NYSE BABA was among the biggest gainers in pre market trading rising 0 67 while banking firm Santander MC SAN was up 0 15 and mining company Rio Tinto LON RIO surged 1 76 Steel firm Arcelormittal AS MT increased 1 18
Elsewhere telecommunications firm Nokia HE NOKIA was flat after it announced its chief operating officer would step down Pharmaceutical stocks were mostly down with firm Teva Pharma Industries Ltd ADR NYSE TEVA dipping down 0 37 while VistaGen Therapeutics Inc NASDAQ VTGN slipped 22 22 and Zealand Pharma A S ADR NASDAQ ZEAL was down 1 21
On the data front the Job Openings and Labor Turnover Survey JOLTS data comes out at 10 00 AM ET 15 00 GMT Meanwhile investors are looking ahead to the Federal Open Market Committee meeting which starts on Tuesday An interest rate hike is highly anticipated
Stocks in Europe were mostly down Germany s DAX fell five points or 0 04 while in France the CAC 40 decreased six points or 0 11 and in London the FTSE 100 was up 41 points or 0 57 Meanwhile the pan European Euro Stoxx 50 fell nine points or 0 26 while Spain s IBEX 35 slumped 27 points or 0 26
In commodities gold futures rose 0 30 to 1 252 20 a troy ounce while crude oil futures was down 0 35 to 57 16 a barrel The U S dollar index which measures the greenback against a basket of six major currencies inched down 0 07 to 93 77 |
TEVA | Stocks Wall Street Set for Higher Opening After Fed Rate Hike | Investing com U S futures were higher on Thursday after the Federal Reserve increased hikes for the third time this year
The S P 500 futures rose two points or 0 08 as of 6 49 AM ET 11 49 GMT while Dow futures increased 37 points or 0 15 Meanwhile tech heavy Nasdaq 100 futures was up seven points or 0 12
The Federal Open Market Committee on Wednesday raised rates for the third time in 2017 as expected Fed officials also hiked their projection for economic growth in 2017 to 2 5 while growth in 2018 was expected to rise to 2 5 a 0 4 increase from the Fed s September projection
Power solution provider Digital Power Corporation NYSE DPW was among the top performers in pre market trading The company rose 11 68 after it announced it was creating a cryptocurrency mining division Meanwhile IT firm Helios and Matheson Analytics Inc NASDAQ HMNY recovered 2 36 The firm dropped 32 64 on Wednesday amid news that the firm was selling shares to raise funds to increase its stake in ticketing platform MoviePass
Elsewhere HSBC slipped 0 76 while telecommunications firm Nokia HE NOKIA was down 0 64 and pharmaceutical firm Teva Pharma Industries Ltd ADR NYSE TEVA fell 1 02
In economic news retail sales jobless claims and import and export price indexes come out at 8 30 AM ET 13 30 GMT
Investors will be looking to Europe today as both the Bank of England and European Central Bank are expected to announce their monetary policy decisions Both banks are expected to hold rates steady Traders will be listening to what ECB President Mario Draghi says about the economic state of the euro zone while Brexit will be on their minds during the BOE decision
Stocks in Europe were down Germany s DAX lost 72 points or 0 57 while in France the CAC 40 decreased 12 points or 0 23 and in London the FTSE 100 was down 22 points or 0 28 Meanwhile the pan European Euro Stoxx 50 fell 14 points or 0 39 while Spain s IBEX 35 slipped 37 points or 0 37
In commodities gold futures rose 0 84 to 1 259 10 a troy ounce while crude oil futures fell 0 27 to 56 45 a barrel The U S dollar index which measures the greenback against a basket of six major currencies inched forward 0 01 to 93 41 |
TEVA | Netanyahu asks Teva Pharm to minimize job loss in Israel | JERUSALEM Reuters Israeli Prime Minister Benjamin Netanyahu said on Thursday he spoke with the chief executive of Teva Pharmaceutical Industries TA TEVA and asked that the company keeps layoffs in Israel to a minimum Israel based Teva N TEVA the world s largest generic drugmaker is due to unveil a major restructuring on Thursday to help pay off its debt
Netanyahu in a statement said he requested from CEO Kare Schultz to maintain the identity of Teva as an Israeli company and Schultz promised to do so |
XOM | Safety measures ordered for failed oil pipeline in California | By Steve Gorman LOS ANGELES Reuters Owners of an oil pipeline that burst in California this week must take numerous corrective measures including an in depth analysis of factors contributing to the spill and a plan to fix any flaws found before they can restart the line U S safety officials said on Friday The corrective action order issued on Thursday by the U S Transportation Department s Pipeline and Hazardous Materials Administration or PHMSA is not regarded as a disciplinary enforcement sanction against the company Plains All American Pipeline LP N PAA officials said But it requires a detailed and lengthy list of actions before the oil line resumes operations starting with removal of the failed pipe for metallurgical and mechanical tests purging the line of remaining petroleum and an independent review of inspection results past and present It also mandates a root cause analysis that explores not only the direct cause of the spill but every contributing factor that may have played a part such as any safety compliance issues said Linda Daugherty a deputy associate administrator for the agency The order sets deadlines for some actions 45 days to complete tests of the failed pipe segment 60 days for the root cause analysis and 90 days to submit a plan for remedying any problems No overall time frame was given for putting the pipeline back online but Daugherty said she did not anticipate a quick restart Word of the action came as Santa Barbara County s district attorney Joyce Dudley said she was consulting with federal and state prosecutors on the potential for bringing a criminal or civil case against the pipeline company The company declined to comment PHMSA generally issues corrective action orders for serious pipeline spills when there is no clear understanding of the cause as is the case in California Daugherty said According to the agency an estimated 1 700 to 2 500 barrels of crude petroleum gushed onto San Refugio State Beach and into the Pacific Ocean about 20 miles 32 km west of Santa Barbara when the underground pipeline which runs along a coastal highway ruptured on Tuesday Plains has said that as much as a fifth of the spilled oil reached the ocean leaving slicks that stretched for more than 9 miles along the coast San Refugio and another nearby state beach El Capitan have been closed indefinitely while crews work around the clock to clean up the spilled oil Based on the latest estimates environmental activists and local officials say the spill was the largest to hit the ecologically sensitive shoreline northwest of Los Angeles since a massive 1969 blowout dumped up to 100 000 barrels into the Santa Barbara Channel That disaster which dwarfs Tuesday s accident killed thousands of sea birds and other wildlife and helped spark the modern U S environmental movement Executives for Plains have accepted responsibility for the latest spill though they say they have not determined its cause They said the rupture was proceeded by a drop in pressure in the pipeline detected by control room operators in Texas before the spill was reported The 24 inch diameter line typically carries about 1 200 barrels of oil an hour from an Exxon Mobil Corp N XOM processing facility near Santa Barbara to a pumping station 10 6 miles away From there the oil is carried in a larger line north toward a distribution hub in Bakersfield more than a hundred miles away The company said an internal inspection was conducted a few weeks ago but results were not yet back Any immediate safety concerns turned up by the inspection should have already been brought to the company s attention Daugherty said According to PHMSA two previous such inspections in 2007 and 2012 led to a total of 54 excavations of the pipeline for repairs mostly due to external corrosion
Plains defended its safety record in a statement on Friday saying it had significantly increased maintenance and safety programs in both size and spending since 2008 |
XOM | Venezuela demands Guyana halt imperial oil exploration | CARACAS Reuters Venezuela on Tuesday demanded that neighboring Guyana halt oil exploration being carried out by Exxon Mobil Corp NYSE XOM in disputed offshore territory in an escalation of a long running border dispute between the two South American nations Exxon last month said it found oil off Guyana s coast spurring complaints from Caracas that Guyana is unfairly exploiting a disputed territory that must be negotiated through a mechanism created via a 1966 treaty signed in Geneva Until there is a resolution of the issue of territorial reclamation there can be no unilateral use of these waters Foreign Minister Delcy Rodriguez said in televised comments The new government of Guyana shows a dangerous political provocation against a peaceful Venezuela supported by the imperial power of an American transnational Exxon Mobil she said referring to Guyanese authorities elected in May Exxon has said it has no comment on the bilateral dispute The sparsely populated and dense jungle area known as the Essequibo encompasses an area equivalent to around two thirds of Guyanese territory It functions in practice as part of Guyana and shows no discernable trace of Venezuelan influence Guyana says Caracas agreed to relinquish the Essequibo following a ruling by an international tribunal in 1899 but that Venezuela later backtracked on that decision
Venezuela says the 1899 ruling was unfair and insists the territory is still in dispute Maps in Venezuela usually describe the Essequibo as the reclamation zone |
MRO | Callon Petroleum Appoints Newberry As COO And Senior VP | U S exploration and production company Callon Petroleum Company NYSE CPE announced that it has appointed Gary A Newberry as senior vice president and chief operating officer Newberry joined Callon Petroleum in 2010 from Marathon Oil Corp NYSE MRO from where he retired after 33 years During his tenure in Marathon Newberry held management positions overseeing production and drilling operations in the U S Midcontinent and Rockies regions Alaska and the Permian basin as well as globally The appointment comes at an opportune moment for Callon as oil price recently logged its largest weekly gain in five months on expectations of a production freeze from the 14 member OPEC bloc and Russia For the beleaguered commodity things further brightened with the release of the U S Energy Department s report showing big drawdowns in domestic crude and gasoline stocks A weaker dollar that made the greenback priced crude cheap for investors holding foreign currency provided further support Callon is an independent energy company focused on the acquisition development exploration and operation of oil and gas properties in the Permian Basin in West Texas As of Jun 30 2016 Callon had 118 gross 93 0 net horizontal wells producing from five established zones Its net daily production for the three months ended Jun 30 2016 grew approximately 41 to 13 451 BOE d approximately 77 oil from the same period of 2015 CALLON PETE DEL Price
The company is proactive as evident from the three month period ending Jun 30 2016 when it drilled 6 gross 3 7 net horizontal wells completed 5 gross 3 4 net horizontal wells and placed 5 gross 3 4 net horizontal wells on production As of Jun 30 2016 it had 6 gross 4 2 net horizontal wells awaiting completion The company currently carries a Zacks Rank 3 Hold Some better ranked players from the energy sector are NGL Energy Partners LP NYSE NGL and Enbridge Energy Partners L P NYSE EEP All these stocks sport a Zacks Rank 1 Strong Buy |
MRO | Oil Gas Stock Roundup Transocean s Contract Termination Marathon Oil s Asset Sale | It was a week which saw oil prices surge on OPEC action while natural gas futures turned lower on weather worries
On the news front offshore contract drilling service provider Transocean Ltd NYSE RIG suffered early termination of a drillship contract while domestic explorer Marathon Oil Corp NYSE MRO agreed to sell non core assets in West Texas and New Mexico for 235 million
Overall it was a mixed week for the sector While West Texas Intermediate WTI crude futures rallied 7 8 to close at 48 24 per barrel while natural gas prices fell by 3 6 to 2 906 per million Btu MMBtu See the last Oil Gas Stock Roundup here
Oil prices notched up a big weekly gain as investors were impressed by a decision from the world s largest oil cartel to slash production targets
The Organization of Petroleum Exporting Countries OPEC whose member nations supply around 40 of the world s crude said it would cut production by as much as 750 000 barrels a day starting in November in order to keep oil prices from falling further Most industry observers didn t have high expectations from the meeting
Apart from the OPEC announcement oil prices were also supported by the U S Energy Department s weekly inventory release which showed that crude stockpiles declined for the fourth straight week continuing to drag down the overall surplus Oils Energy Sector Price Index
Meanwhile natural gas settled down despite another below average build the 21st in a row The commodity was overwhelmed by predictions of tepid air conditioning demand with forecasts that showed cooler weather ahead
Recap of the Week s Most Important Stories1 Offshore drilling giant Transocean Ltd saw its shares decline 7 6 in the after hours trading session on October 3 after India based Reliance Industries Ltd decided to exercise the option to terminate its contract for Transocean s Discoverer India rig ahead of schedule The ultra deepwater drillship will be pulled out of service in Dec 2016 four years before the scheduled contract expiry in Jan 2021 Per the contract Transocean will receive a lump sum compensation amount of approximately 160 million from Reliance for the early termination This is another sign that the collapse in crude prices that began in mid 2014 amid a glut of supply and slowing demand for the commodity has affected the offshore drillers badly as oil companies cut back their capital spending 2 Leading upstream energy player Marathon Oil Corp reported that it has signed a deal to sell off some of its non core assets in West Texas and New Mexico for 235 million Under this deal Marathon will be seen divesting its non operated conventional CO2 and waterflood assets to an unidentified buyer by the end of this year These assets averaged about 4 000 barrels of oil equivalent per day in the first half of 2016 With oil prices remaining low for a long time and still hovering below 50 a barrel exploration and production companies such as Marathon find it difficult to borrow funds from the lenders Hence this forces them to sell off their non core properties to meet their expenses 3 British oil major BP plc LON BP NYSE BP recently announced that it has struck an accord with the Egyptian government for the amendment of three concessions in the Arab country BP has secured amendments from the authorities for three concessions in Egypt Temsah Ras El Barr and Nile Delta Offshore This will facilitate acceleration of output from the Nooros gas discovery after recording positive appraisal results from another find Recently BP achieved record production of 700 million standard cubic feet per day mmscfd in the Nooros development BP currently carries a Zacks Rank 3 Hold You can see With the conclusion of these amendments BP can progress with the enhancement of its drilling activities in these concession areas The amendments also allow fast track development of the Nooros field in the Nile Delta offshore concession and should allow the company to reach a production level of 800 mmscfd by early 2017 Additional wells are also expected to be drilled by BP in Ras El Barr and Temsah areas which will likely bring substantial gas to the Egyptian domestic market Read more 4 Natural gas producer Chesapeake Energy Corp NYSE CHK declared the pricing of private placement of 1 1 billion convertible senior notes The notes which are scheduled to mature by 2026 will likely have an interest rate of 5 5 The company has upsized the private placement from the earlier amount of 850 million Private placement generally means that the notes will be sold to few selected investors In fact Chesapeake motioned that the investors are qualified institutional buyers Notably initial purchasers will receive a 30 day option to buy up to an extra 150 million aggregate principal amount of notes Chesapeake is anticipated to close the private placement on Oct 5 2016 upon fulfillment of customary closing conditions The net proceeds from the offering will likely be utilized for general corporate activities like repurchase of debt and repayment of senior notes that are slated to mature in the near term Read more 5 Hamilton Bermuda based offshore drilling firm SeaDrill Ltd NYSE SDRL saw its shares decline after North Atlantic Drilling Ltd in which it holds 70 stake announced a rig contract cancellation by Norwegian oil giant Statoil OL STL ASA NYSE STO This cancellation notice which pertains to the contract for the West Epsilon jack up came two months before the expiration of the drilling contract between the parties The West Epsilon rig was originally contracted to provide drilling services in Norway until Dec 2016 However Statoil has now decided to conclude the rig s current activities in mid Oct As per the terms of the contract North Atlantic Drilling is now entitled to receive a lump sum payment of approximately 11 million because of the early termination The West Epsilon on the other hand is currently being marketed for new contract Read more
Price Performance
The following table shows the price movement of some the major oil and gas players over the past week and during the last 6 months Over the course of last week The Energy Select Sector SPDR was up 4 92 thanks to OPEC s surprise move to cut oil production Consequently investors witnessed heavy buying in most market heavyweights The best performer was offshore drilling giant Transocean Ltd that added 16 65 to its stock price
Longer term over the last 6 months the sector tracker has gained 18 07 Transocean was again one of the major beneficiaries during this period experiencing a 15 20 price increase
What s Next in the Energy World
As usual market participants will be closely tracking the regular weekly releases i e the U S government data on oil and natural gas Energy traders will also be focusing on the Baker Hughes data on rig count
Now See Our Private Investment Ideas
While the above ideas are being shared with the public other trades are hidden from everyone but selected members Would you like to peek behind the curtain and view them Starting today for the next month you can follow all Zacks private buys and sells in real time from value to momentum from stocks under 10 to ETF and option moves from insider trades to companies that are about to report positive earnings surprises we ve called them with 80 accuracy You can even look inside portfolios so exclusive that they are normally closed to new investors |
MRO | The Zacks Analyst Blog Highlights Transocean Marathon Oil BP SeaDrill And Statoil ASA | For Immediate Release
Chicago IL October 05 2016 Zacks com announces the list of stocks featured in the Analyst Blog Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets Stocks recently featured in the blog include Transocean Ltd NYSE RIG NYSE Marathon Oil Corp NYSE MRO NYSE BP plc LON BP NYSE SeaDrill Ltd NYSE and Statoil OL STL ASA NYSE
Today Zacks is promoting its Buy stock recommendations
Here are highlights from Tuesday s Analyst Blog
Oil Gas Stock Roundup
It was a week which saw oil prices surge on OPEC action while natural gas futures turned lower on weather worries
On the news front offshore contract drilling service provider Transocean Ltd NYSE suffered early termination of a drillship contract while domestic explorer Marathon Oil Corp NYSE agreed to sell non core assets in West Texas and New Mexico for 235 million
Overall it was a mixed week for the sector While West Texas Intermediate WTI crude futures rallied 7 8 to close at 48 24 per barrel while natural gas prices fell by 3 6 to 2 906 per million Btu MMBtu See the last Oil Gas Stock Roundup here
Oil prices notched up a big weekly gain as investors were impressed by a decision from the world s largest oil cartel to slash production targets
The Organization of Petroleum Exporting Countries OPEC whose member nations supply around 40 of the world s crude said it would cut production by as much as 750 000 barrels a day starting in November in order to keep oil prices from falling further Most industry observers didn t have high expectations from the meeting
Apart from the OPEC announcement oil prices were also supported by the U S Energy Department s weekly inventory release which showed that crude stockpiles declined for the fourth straight week continuing to drag down the overall surplus
Meanwhile natural gas settled down despite another below average build the 21st in a row The commodity was overwhelmed by predictions of tepid air conditioning demand with forecasts that showed cooler weather ahead
Recap of the Week s Most Important Stories
1 Offshore drilling giant Transocean Ltd saw its shares decline 7 6 in the after hours trading session on October 3 after India based Reliance Industries Ltd decided to exercise the option to terminate its contract for Transocean s Discoverer India rig ahead of schedule
The ultra deepwater drillship will be pulled out of service in Dec 2016 four years before the scheduled contract expiry in Jan 2021 Per the contract Transocean will receive a lump sum compensation amount of approximately 160 million from Reliance for the early termination
This is another sign that the collapse in crude prices that began in mid 2014 amid a glut of supply and slowing demand for the commodity has affected the offshore drillers badly as oil companies cut back their capital spending
2 Leading upstream energy player Marathon Oil Corp reported that it has signed a deal to sell off some of its non core assets in West Texas and New Mexico for 235 million
Under this deal Marathon will be seen divesting its non operated conventional CO2 and waterflood assets to an unidentified buyer by the end of this year These assets averaged about 4 000 barrels of oil equivalent per day in the first half of 2016
With oil prices remaining low for a long time and still hovering below 50 a barrel exploration and production companies such as Marathon find it difficult to borrow funds from the lenders Hence this forces them to sell off their non core properties to meet their expenses
3 British oil major BP plc NYSE recently announced that it has struck an accord with the Egyptian government for the amendment of three concessions in the Arab country
BP has secured amendments from the authorities for three concessions in Egypt Temsah Ras El Barr and Nile Delta Offshore This will facilitate acceleration of output from the Nooros gas discovery after recording positive appraisal results from another find Recently BP achieved record production of 700 million standard cubic feet per day mmscfd in the Nooros development BP currently carries a Zacks Rank 3 Hold You can see
With the conclusion of these amendments BP can progress with the enhancement of its drilling activities in these concession areas The amendments also allow fast track development of the Nooros field in the Nile Delta offshore concession and should allow the company to reach a production level of 800 mmscfd by early 2017 Additional wells are also expected to be drilled by BP in Ras El Barr and Temsah areas which will likely bring substantial gas to the Egyptian domestic market Read more
4 Hamilton Bermuda based offshore drilling firm SeaDrill Ltd NYSE saw its shares decline after North Atlantic Drilling Ltd in which it holds 70 stake announced a rig contract cancellation by Norwegian oil giant Statoil ASA NYSE
This cancellation notice which pertains to the contract for the West Epsilon jack up came two months before the expiration of the drilling contract between the parties The West Epsilon rig was originally contracted to provide drilling services in Norway until Dec 2016 However Statoil has now decided to conclude the rig s current activities in mid Oct
As per the terms of the contract North Atlantic Drilling is now entitled to receive a lump sum payment of approximately 11 million because of the early termination The West Epsilon on the other hand is currently being marketed for new contract Read more
Today Zacks is promoting its Buy stock recommendations
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MRO | Marathon MRO To Divest Non Core Assets Worth 235 Million | Leading upstream energy player Marathon Oil Corporation NYSE MRO recently reported that it has signed a deal to sell some of its non core assets in West Texas and New Mexico for 235 million Marathon Oil is expected to divest its non operated conventional CO2 and waterflood assets to an unidentified buyer by the end of this year These assets produced about 4 000 barrels of oil equivalent per day in the first half of 2016 Marathon Oil is in the midst of a massive divestment program Since Aug 2015 the company has announced non core asset sales of more than 1 5 billion In August 2015 the company divested its Wilburton OK assets for an amount of 102 million Later Marathon entered into an agreement to divest its Gulf of Mexico GoM assets for a total price of 205 million The deal was closed at the end of 2015 Marathon s largest divestment deal to date was the sale of all its Wyoming upstream and midstream assets for roughly 870 million This deal was closed in mid 2016 With oil prices remaining low for a long time now and the commodity mostly still hovering below the 50 a barrel level exploration and production companies like Marathon Oil have been finding it difficult to borrow funds from lenders Hence most of these firms have been compelled to sell their non core properties to meet their expenses MARATHON OIL CP Price Marathon Oil is a leading energy firm with a large and geographically diverse reserve base and solid project pipeline Additionally it possesses a healthy balance sheet which helps it to capitalize on investment opportunities The company currently carries a Zacks Rank 3 Hold implying that it will perform in line with the broader U S equity market over the next one to three months Some better ranked players in the broader energy sector include Evolution Petroleum Corp NYSE EPM Enviva Partners LP NYSE EVA and CONE Midstream Partners LP NYSE CNNX All these stocks sport a Zacks Rank 1 Strong Buy You can see In the last four quarters Evolution Petroleum posted an average positive earnings surprise of 45 84 Enviva Partners on the other hand posted an average positive earnings surprise of 0 19 in the last four quarters In the last four quarters CONE Midstream Partners posted an average positive earnings surprise of 19 38 Confidential from ZacksBeyond this Analyst Blog would you like to see Zacks best recommendations that are not available to the public Our Executive VP Steve Reitmeister knows when key trades are about to be triggered and which of our experts has the hottest hand |
CSCO | Top Trade Ideas The Week Of March 18 2013 Bonus Idea | Here is your Bonus Idea with links to the full Top Ten Cisco Systems Ticker CSCO Cisco Systems CSCO has been floating like a butterfly exhibiting a Bearish Butterfly Pattern with a Potential Reversal Zone at 22 45 A more traditional view shows a move higher out of a bull flag Friday with a target of 23 The Relative Strength Index RSI is bullish and rising The Moving Average Convergence Divergence indicator MACD is rising both supporting further upside price action There is resistance at 23 69 and 24 20 both from 2010 Support lower comes at 21 50 20 80 and 20 50 followed by 19 40 Trade Idea 1 Enter long on a move over 22 with a 2 0 trailing stop Trade Idea 2 Buy the April 22 Calls offered at 35 cents late Friday on a move over 22 Trade Idea 3 Buy the April 22 23 Call Spread 29 cents on a move over 22 Trade Idea 4 Buy the March 22 Expiry 22 5 Calls 3 cents as a lottery ticket After reviewing over 1 000 charts I have found some good setups for the week These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which heading into next week the equity markets are becoming mixed Outside influencers see Gold continuing to hold a range with an upside bias for any break out while Crude Oil slowly grinds higher The US Dollar Index looks ready to pullback in the uptrend while US Treasuries are biased lower The Shanghai Composite and Emerging Markets are biased to the downside for the near term Volatility looks to remain non existent keeping the bias higher for the equity index ETF s SPY IWM and QQQ Their charts are a mixed bag the IWM being the strongest followed by the QQQ building potential energy and the SPY perhaps ready to pullback or consolidate If the U S Dollar Index and Treasuries continue lower this will be a big tailwind for Equities Use this information as you prepare for the coming week and trad em well The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my page for my full disclaimer |
CSCO | Cisco Systems Profitability Analysis | My analysis on large cap tech stocks that offer a good return on investment for a value investor continues Today that analysis is based on the profitability ratios in the financial statements of Cisco Systems Inc over the last five years When a firm has strong profitability ratios it portrays to an investor that it provides a good return on his or her investment The profitability numbers that I came across for Cisco were very encouraging Keep in mind however that this is just one of the many ways to analyze a stock Cisco Systems is on a roll coming off a patent victory and many Wall Street analysts are upgrading the stock s price target This article is further proof as to why CSCO is a great addition to your portfolio A profitability analysis of a company involves looking at a class of financial metrics to determine a firm s capacity to generate profitable sales from the resources it has Typically higher ratio numbers translate to a higher investment value for the firm Gross profit divided by net sales gives you the gross profit margin Cisco s gross profit margin took a dive from 2010 to 2011 and from 2011 to 2012 The gross profit margin is lower than the 2008 level Operating income divided by net sales is the calculation used to obtain the operating profit margin The operating margin has beaten the industry average three out of four times in the last five years Additionally the operating margin has gone over 20 this year and this is nice to see for the value investor Read more |
CSCO | 14 Stocks And 6 Funds Hiked Dividends Last Week | Last week was an additional week where 20 stocks announced dividend raises MFA Financial is on the list with a 10 percent hike Other big companies are Cisco CSCO the company which handles traffic on the internet Cisco raised its dividends by 21 4 percent and is definitely my top pick from the results Five stocks are debt free and additional five have a low debt ratio In total 20 funds and stocks increased their dividend payments last week of which five are high yields and 10 are recommended to buy The average dividend growth amounts to 71 91 percent The Female Health Company FHCO has a market capitalization of 207 57 million The company employs 144 people generates revenue of 35 03 million and has a net income of 15 30 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 11 40 million The EBITDA margin is 32 54 percent the operating margin is 31 23 percent and the net profit margin 43 67 percent Financial Analysis The total debt represents 0 00 percent of the company s assets and the total debt in relation to the equity amounts to 0 00 percent Due to the financial situation a return on equity of 74 68 percent was realized Twelve trailing months earnings per share reached a value of 0 56 Last fiscal year the company paid 0 22 in the form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 12 89 the P S ratio is 5 92 and the P B ratio is finally 8 55 The dividend yield amounts to 3 87 percent and the beta ratio has a value of 0 74 Cisco Systems CSCO has a market capitalization of 111 41 billion The company employs 66 639 people generates revenue of 46 061 billion and has a net income of 8 041 billion The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 12 667 billion The EBITDA margin is 27 50 percent the operating margin is 21 85 percent and the net profit margin 17 46 percent Financial Analysis The total debt represents 17 79 percent of the company s assets and the total debt in relation to the equity amounts to 31 84 percent Due to the financial situation a return on equity of 16 32 percent was realized Twelve trailing months earnings per share reached a value of 1 74 Last fiscal year the company paid 0 28 in the form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 12 03 the P S ratio is 2 42 and the P B ratio is finally 2 16 The dividend yield amounts to 3 25 percent and the beta ratio has a value of 1 23 Raven Industries RAVN has a market capitalization of 1 22 billion The company employs 1 405 people generates revenue of 381 51 million and has a net income of 50 64 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 84 91 million The EBITDA margin is 22 26 percent the operating margin is 19 83 percent and the net profit margin 13 27 percent Financial Analysis The total debt represents 0 00 percent of the company s assets and the total debt in relation to the equity amounts to 0 00 percent Due to the financial situation a return on equity of 31 44 percent was realized Twelve trailing months earnings per share reached a value of 1 44 Last fiscal year the company paid 0 36 in the form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 23 41 the P S ratio is 3 20 and the P B ratio is finally 6 75 The dividend yield amounts to 1 43 percent and the beta ratio has a value of 1 13 Take a closer look at the full table of stocks with recent dividend hikes The average dividend growth amounts to 71 91 percent and the average dividend yield amounts to 3 68 percent Stocks from the sheet are valuated with a P E ratio of 15 44 The average P S ratio is 6 06 and P B 2 30 Related Stock Ticker ACMP XAA BANR CAC CSCO CHCO FHCO KED KMF MFA NXE NFZ NKR NVJ NBJ OFS RAVN SCVL SIG SCS WAFD |
XOM | Crude Oil Another Low And Rig Count Not Helping | Why Rig count is not a good measure
We do not see the oil price going back to 100 dollar any time soon as a result of the supply glut which we have on the market Many investors do look at the rig count number very closely and try to base their decision on this number as if this is going to make an immediate impact on the oil price
The fact is that during the oil crash of the 1987 1989 and 1997 1999 the rig shutdown count jumped from 49 to 74 but the oil production was only reduced from 5 3 respectively The most recent crash in oil price during the 2008 2009 pushed the rig shutdown number by 60 but the oil production actually increased by 10
So what we want to see is more actions taken by the oil producers rather than focusing on the rig count number and we want to see a substantial increase in the demand for the crude which can lift the price
Drillers US Shale oil is without a doubt is the major problem and if we look at the crash of oil price during the 2008 2009 we will see that rig shutdown actually means nothing for the near future because your production will increase due to efficient employment of capital There are over 3000 wells of oil from north Dakota to Texas which are completely untouched so soon the price will go up these wells will come live and we will have even more production
Exxon Mobil NYSE XOM Having said that this does not mean that lower oil prices are not impacting the strategic shift in big oil players strategy Exxon heavily rely on the US shale oil and the lower oil prices has made an impact on their investment projects Nevertheless in order to survive in the future the company has announced last week it will double its production so that they can still invest in overseas projects a clear evidence lower oil price is making matters difficult and they have pump more now to survive in the future and the investment will be overseas where the cost is low
Crude Inventory data did not help
The crude inventory data released on wednesday is still having its effects on the crude price However given that the
Disclosure Disclaimer The above is for informational purposes only and NOT to be construed as specific trading advice responsibility for trade decisions is solely with the reader by Naeem Aslam |
TEVA | Teva Pharmaceutical Industries Ltd TEVA Dips More Than Broader Markets What You Should Know | Teva Pharmaceutical Industries Ltd NYSE TEVA closed the most recent trading day at 8 11 moving 1 1 from the previous trading session This change lagged the S P 500 s 0 65 loss on the day Elsewhere the Dow lost 0 42 while the tech heavy Nasdaq lost 0 46
Coming into today shares of the company had lost 1 91 in the past month In that same time the Medical sector lost 0 52 while the S P 500 gained 4 11
Investors will be hoping for strength from TEVA as it approaches its next earnings release which is expected to be August 7 2019 On that day TEVA is projected to report earnings of 0 58 per share which would represent a year over year decline of 25 64 Meanwhile our latest consensus estimate is calling for revenue of 4 27 billion down 9 15 from the prior year quarter
For the full year our Zacks Consensus Estimates are projecting earnings of 2 38 per share and revenue of 17 16 billion which would represent changes of 18 49 and 9 01 respectively from the prior year
Any recent changes to analyst estimates for TEVA should also be noted by investors Recent revisions tend to reflect the latest near term business trends As such positive estimate revisions reflect analyst optimism about the company s business and profitability
Based on our research we believe these estimate revisions are directly related to near team stock moves To benefit from this we have developed the Zacks Rank a proprietary model which takes these estimate changes into account and provides an actionable rating system
The Zacks Rank system ranges from 1 Strong Buy to 5 Strong Sell It has a remarkable outside audited track record of success with 1 stocks delivering an average annual return of 25 since 1988 Over the past month the Zacks Consensus EPS estimate remained stagnant TEVA is holding a Zacks Rank of 3 Hold right now
Valuation is also important so investors should note that TEVA has a Forward P E ratio of 3 45 right now This valuation marks a discount compared to its industry s average Forward P E of 6 74
We can also see that TEVA currently has a PEG ratio of 0 94 The PEG ratio is similar to the widely used P E ratio but this metric also takes the company s expected earnings growth rate into account TEVA s industry had an average PEG ratio of 0 95 as of yesterday s close
The Medical Generic Drugs industry is part of the Medical sector This group has a Zacks Industry Rank of 148 putting it in the bottom 43 of all 250 industries
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups Our research shows that the top 50 rated industries outperform the bottom half by a factor of 2 to 1
You can find more information on all of these metrics and much more on Zacks com |
TEVA | Teva climbing from recent low shares up 7 | Bargain hunters are driving up the price of Teva Pharmaceutical Industries TEVA 6 9 Shares have rallied over 26 since the low of 10 85 on November 2 after its Q3 miss and rash of downgrades Previously Analysts weigh in on Teva after Q3 miss shares down 20 Nov 2 Now read |
TEVA | Stocks U S Futures Fall as Tax Reform Uncertainty Sets In | Investing com U S futures pointed to a lower open on Monday as investors remain on edge over the tax reform bill
The S P 500 futures fell half a point or 0 03 as of 6 53 AM ET 11 53 AM GMT while Dow futures slipped four and a half points or 0 02 Meanwhile tech heavy Nasdaq 100 futures decreased two and a half points or 0 04
U S Treasury Secretary Steven Mnuchin said on Friday that he foresaw the tax reform bill being sent to President Donald Trump by the end of 2017 but concerns remain about what whether the bill will be finalized The House passed its version of the tax bill on Thursday and now has to go through the Senate
Among the biggest movers before the morning bell were banking firm Barclays LON BARC PLC ADR NYSE BCS which rose 1 43 and Chinese e commerce giant Alibaba NYSE BABA which increased 1 11 Oil firm BP LON BP PLC was up 0 41 after it declared a 0 10 dividend
Meanwhile social media firm Snap Inc NYSE SNAP slumped 1 00 and pharmaceutical firm Teva Pharma Industries Ltd ADR NYSE TEVA was down 1 19 Financial services firm ING Group NV ADR NYSE ING fell 0 61 while Chinese electronic retailer Qudian Inc NYSE QD decreased 1 89
Stocks in Europe recovered after dipping earlier on Monday when Germany failed to form a three way government coalition Germany s DAX rose 41 points or 0 31 while in France the CAC 40 increased 19 points or 0 36 and in London the FTSE 100 inched forward 11 points or 0 16 Meanwhile the pan European Euro Stoxx 50 rose ten and a half points or 0 30 while Spain s IBEX 35 was up 36 points or 0 37
In commodities gold futures fell 0 37 to 1 291 71 a troy ounce while crude oil futures slumped 0 58 to 56 38 a barrel The U S dollar index which measures the greenback against a basket of six major currencies inched forward 0 02 to 93 63 |
TEVA | Stocks U S Futures Point to Higher Opening on Wall Street | Investing com U S futures were higher on Tuesday as uncertainty over the tax cut bill eases
The S P 500 futures inched forward five points or 0 20 as of 6 52 AM ET 11 52 AM GMT while Dow futures jumped 56 points or 0 24 Meanwhile tech heavy Nasdaq 100 futures rose 16 points or 0 26
Oil firm BP LON BP PLC ADR NYSE BP was among the top gainers in pre market trading rising 1 00 while steel production firm Arcelormittal AS MT was up 0 74 Meanwhile Chinese e commerce giant Alibaba NYSE BABA increased 0 71 after reports that the firm was opening brick and mortar stores in China
Financial stocks were down Banking giant HSBC Holdings LON HSBA PLC ADR NYSE HSBC inched down 0 27 while financial institution ING Group NV ADR NYSE ING slipped 0 28 Elsewhere pharmaceutical firm Teva Pharma Industries Ltd ADR NYSE TEVA fell 0 61 while Chinese microlender Qudian Inc NYSE QD was down 0 80
On Monday U S President Donald Trump said at a cabinet meeting that his administration was going to give the American people a huge tax cut for Christmas according to Associated Press
House Republicans passed the tax cut bill on Thursday and a version of the bill is now making its way through the Senate Some analysts are skeptical that the tax cuts will get pushed through before the end of the year
In economic news the Chicago Fed National Activity Index comes out at 8 30 AM ET 1 30 PM GMT while existing home sales is released at 10 00 AM ET 3 00 PM GMT
On Tuesday Federal Reserve Chair Janet Yellen is expected to participate in a moderated discussion with British economist Mervyn King Investors will be watching for any indication of a rate hike at the next Federal Open Market Committee meeting in December
Stocks in Europe rallied Germany s DAX rose 67 points or 0 52 while in France the CAC 40 increased 20 points or 0 41 and in London the FTSE 100 inched forward 10 points or 0 14 Meanwhile the pan European Euro Stoxx 50 rose 11 points or 0 32 while Spain s IBEX 35 was up 14 points or 0 14
In commodities gold futures rose 0 29 to 1 279 02 a troy ounce while crude oil futures increased 0 34 to 56 61 a barrel The U S dollar index which measures the greenback against a basket of six major currencies inched forward 0 03 to 94 02 |
XOM | UK government would oppose any takeover of BP FT | Reuters Britain s outgoing government has told BP Plc L BP that it wants the company to remain a British industrial champion and it would oppose any takeover of the oil producer the Financial Times reported The message follows the 70 billion deal to acquire rival producer BG L BG by oil major Royal Dutch Shell L RDSa which has sparked speculation of a larger wave of consolidation similar to the one at the end of 1990s during another oil price decline British officials have said the government would be skeptical about any takeover even if it involves Royal Dutch Shell because it wants the country to have two big global oil companies the FT reported Officials acknowledge the government has few formal powers to block a bid but a senior City figure briefed on government thinking said making its opposition so clear may deter any foreign bidder from offering a bid the FT reported BP said it had no comment on the report Representatives at 10 Downing Street declined immediate comment The FT quotes the government as saying The government talks to a wide range of UK businesses as you would expect It is in the UK s interest to have British companies competing and succeeding at home and abroad The government led by Conservative Party Prime Minister David Cameron is facing election on May 7 and is neck to neck in approval ratings with the rival Labour Party The warning to any potential bidder for BP would not be the first of its kind Five years ago when BP s stock plummeted because of an oil spill in the U S Gulf the UK government also analyzed the likelihood of a potential hostile bid for BP and ways to respond to it industry sources have said BP has sold 50 billion worth of assets to pay off the damages caused by the spill and could still face billions in additional claims The perceived weakness has sparked speculation that a cash rich company like ExxonMobil N XOM could attempt to acquire BP However BP s U S spill liabilities together with a heavy exposure to sanctions hit Russia are seen as the main deterrents of any potential hostile bid for the company BP has said it is under no pressure to make acquisitions after the BG Shell deal Last week Chief Executive Bob Dudley told CNBC that BP had not been approached by any company
Britain has been pursuing a laissez faire approach to takeovers but toughened its stance last year following a bid by Pfizer N PFE for AstraZeneca L AZN Pfizer eventually dropped the offer for its Anglo Swedish rival |
XOM | Exxon Mobil Q1 EPS 1 17 vs expectations of 0 83 | Investing com The world s largest oil and gas company Exxon Mobil Corporation NYSE XOM reported better than expected first quarter earnings ahead of Thursday s opening bell sending its shares higher in pre market trade Exxon said earnings per share came in at 1 17 in the first three months of the year easily surpassing expectations for earnings of 0 83 per share and down from 2 10 in the same period a year earlier The company s first quarter revenue totaled 67 62 billion beating forecasts for sales of 53 6 billion and down sharply from sales of 106 33 billion in first quarter of last year Exxon Mobil s balanced portfolio delivered solid financial results in the quarter said Rex W Tillerson chairman and chief executive officer Regardless of current market conditions we remain focused on business fundamentals and competitive advantages that create long term shareholder value he added During the quarter ExxonMobil produced 4 2 million oil equivalent barrels per day an increase of 97 000 barrels per day over the first quarter of 2014 Volumes were up 2 3 benefiting from new developments in Papua New Guinea Canada Angola Indonesia and U S onshore liquids plays Oil equivalent production increased 2 3 from the first quarter of 2014 with liquids up 6 and gas down 1 6 Following the release of the report Exxon Mobil shares rose 1 8 in pre market trade to 89 45 from Wednesday s closing price of 87 87 Meanwhile the outlook for U S equity markets was downbeat The Dow futures indicated a loss of 0 15 at the open the S P 500 futures pointed to a drop of 0 15 while Nasdaq 100 futures declined 0 4 |
XOM | Exxon Mobil s Profits Fall 46 In First Quarter | By
Exxon Mobil Corporation NYSE XOM on Thursday reported a 46 percent fall in first quarter earnings as a steep decline in oil prices continued to eat into the energy sector s profits title Reuters Exxon Mobil Corporation NYSE XOM on Thursday reported a 46 percent fall in first quarter earnings as a steep decline in oil prices continued to eat into the energy sector s profits rel external image
Exxon Mobil Corporation NYSE XOM saw its earnings fall 46 percent in the first quarter as a drastic drop in oil prices continued to eat into the energy sector s profits The Irving Texas company on Thursday reported quarterly profits of 4 9 billion or 1 17 a share compared with 9 1 billion or 2 10 in the same period last year
Revenues in the first quarter totaled 67 6 billion a drop of about 36 percent from first quarter revenues in 2014 106 3 billion
Exxon Mobil continued to scale back capital and exploration expenditures as part of a multiyear plan to reduce raw material service and construction costs The world s largest publicly traded oil company spent 7 7 billion in the first quarter a 9 percent drop from a year earlier Rex Tillerson Exxon Mobil s chairman and CEO said in March that the company would cut its capital budget every year through 2017 with spending for 2015 reduced to 34 billion or 12 percent less than 2014 spending
Global oil prices have plunged by about half since last summer when Brent crude an international benchmark fell from 115 a barrel in June 2014 to below 45 a barrel in January On Thursday Brent crude was trading at 65 84 a barrel while U S crude oil hit a five month high of 59 40 a barrel Reuters reported
Regardless of current market conditions we remain focused on business fundamentals and competitive advantages that create long term shareholder value Tillerson told investors Thursday
Exxon Mobil s oil and natural gas output rose in the first quarter by 97 000 oil equivalent barrels per day to 4 2 million barrels Quarterly volumes were up 2 3 percent thanks largely to new developments in Papua New Guinea Canada Angola and Indonesia as well as in Alaska s North Slope
The higher volumes increased Exxon Mobil s earnings by 340 million and favorable tax effects added another 250 million But the gains weren t enough to offset the 5 5 billion drop in decreased earnings from lower gas and liquids prices Overall upstream earnings fell 41 percent in the first quarter to 2 9 billion |
CSCO | Cisco Poised For A Breakout | Cisco CSCO the giant networker looks poised for a breakout on the longer term chart The 200 month moving average is 22 01 and the stock has not traded decisively above that key level since early 2010 Fundamentally at 22 per share CSCO is trading 11 x 2013 s expected earnings per share of 1 99 and 10 x 2014 s expected eps of 2 11 for expected growth this year and next of 7 5 and 6 Expectations are so low for the networker I would fully expect earnings growth to come in ahead of the current estimates Subtracting out CSCO s balance sheet hoard CSCO is trading at 6 x cash flow If the stock clears 22 and with a decent market as a tailwind I think it could eventually run into the high 20 s |
TEVA | Jazz s JAZZ New Sleep Drug Sunosi Gets Schedule IV Status | Jazz Pharmaceuticals plc NASDAQ JAZZ announced that the U S Drug Enforcement Agency DEA has designated its recently approved sleep drug Sunosi solriamfetol as a Schedule IV medicine The designation is given to drugs composed of controlled substances or chemicals based on their potential for abuse The Schedule IV designation for Sunosi suggests that the drug has low potential for abuse and low risk of dependence This is likely to boost the drug s prospects and reach following its launch next month However the impact of this designation on the company s commercialization plan for Sunosi remains to be seen Jazz may provide an update on the plans on the second quarter earnings call Please note that was approved in March as a treatment to improve wakefulness and reduce excessive daytime sleepiness EDS in adult patients with narcolepsy or obstructive sleep apnea Sunosi will be commercially available in the United States in two doses 75 mg and 150 mg tablets starting early July Jazz s shares are up 4 1 so far this year compared with the s increase of 5 1 We note that the company has developed solriamfetol for an indication similar to its sole marketed drug Xyrem However Xyrem is a Schedule III controlled substance and the distribution of the drug is restricted to a single pharmacy under the FDA s risk evaluation and mitigation strategy REMS Moreover the FDA continues to evaluate the on an ongoing basis and may modify it if required An adverse change by the agency can affect the sales of the blockbuster drug A Schedule IV designation for Sunosi may lead to the mitigation of the risk of dependence on a single pharmacy for distribution as is the case for Xyrem Moreover Xyrem will start facing generic competition as early as 2023 Successful commercialization of Sunosi may help the company offset the loss in Xyrem sales We remind investors that the company is developing a Xyrem with low sodium content in late stage studies for EDS and cataplexy in narcolepsy patients Meanwhile competition is increasing for Jazz as several companies are developing or marketing treatments for narcolepsy Approved drugs for narcolepsy include Teva Pharma s NYSE TEVA Provigil and Novartis NYSE NVS Ritalin SR Avadel Pharmaceuticals plc NASDAQ AVDL is developing a narcolepsy candidate Jazz Pharmaceuticals PLC Price
Zacks RankJazz currently has Zacks Rank 2 Buy You can see Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
TEVA | AstraZeneca Gets CHMP Nod For Forxiga Fasenra Expanded Label | AstraZeneca Plc NYSE AZN announced that the European Medicines Agency s Committee for Medicinal Products for Human Use CHMP has issued a positive opinion for label expansion of its diabetes drug Forxiga and respiratory drug Fasenra The CHMP has recommended a change to the to the European label of Forxiga dapagliflozin to include cardiovascular CV outcomes data from the phase III DECLARE TIMI 58 study The DECLARE TIMI 58 study evaluated the cardiovascular CV and renal effects of Forxiga dapagliflozin in adults with type II diabetes compared to placebo Data from the study showed Forxiga produced a statistically significant drop in the rate of hospitalisation for heart failure of cardiovascular death compared to a placebo which was one of the two primary efficacy endpoints There were fewer major adverse CV events observed with Forxiga for the other primary efficacy endpoint however this did not reach statistical significance Forxiga was approved for type I diabetes indication in Europe in March 2019 and is under review in the United States for the same indication with a decision expected in the second half of 2019 Forxiga is known by the name of Farxiga in United States AstraZeneca s shares have risen 11 2 so far this year compared with the s increase of 6 3 Further the CHMP issued a positive opinion recommending approval of a a self administration option for Fasenra benralizumab andand the new delivery method a pre filled single use auto injector the Fasenra pen to the medicine s product information in the European Union The positive opinion for self administration and the Fasenra pen is supported by data from the phase III GREGALE and GRECO studies and the phase I AMES study respectively The safety and tolerability of Fasenra in these studies were consistent with the known profile of the medicine The company expects a regulatory decision by the FDA on self administration and the new pre filled single use auto injector device in the second half of 2019 Fasenra is AstraZeneca s first respiratory biologic and is currently approved as an add on maintenance treatment for severe eosinophilic asthma in the United States Europe Japan and other countries GlaxoSmithKline s NYSE GSK Nucala and Teva Pharmaceutical Industries NYSE TEVA Cinqair are presently marketed for the same indicationSuccessful label expansion of Foriga and Fasenra in additional indications should drive sales of these drugs further AstraZeneca PLC Price Zacks Rank and Stock to ConsiderAstraZeneca currently carries a Zacks Rank 4 Sell Some better ranked stocks in the large cap pharmaceutical sector include Novartis AG NYSE NVS carrying a Zacks Rank 2 Buy You can see Novartis earnings per share estimates increased from 4 98 to 5 01 for 2019 and from 5 48 to 5 56 for 2020 over the past 60 days Share price of the company has increased 24 5 year to date This Could Be the Fastest Way to Grow Wealth in 2019 Research indicates one sector is poised to deliver a crop of the best performing stocks you ll find anywhere in the market Breaking news in this space frequently creates quick double and triple digit profit opportunities These companies are changing the world and owning their stocks could transform your portfolio in 2019 and beyond Recent trades from this sector have generated 98 119 and 164 gains in as little as 1 month |
TEVA | Jazz JAZZ Acquires Early Stage Precision Oncology Asset | Jazz Pharmaceuticals plc NASDAQ JAZZ has acquired an early stage innovative precision oncology asset from London based Redx Pharma for an upfront payment of 3 5 million Redx Pharma s pan RAF inhibitor program has the potential to be developed to treat RAF and RAS mutant tumorsIn addition to the upfront payment Jazz will pay additional 203 million in several milestone payments Redx is also eligible to receive tiered royalties on any future net sales of drugs developed under this program Per a separate agreement Redx will be responsible for pre clinical development of the candidate while Jazz will be liable for clinical stage development regulatory activities and commercialization The deal seems to be favorable for Jazz as the inclusion of the program will likely boost the company s oncology pipeline going forward The company has multiple pipeline candidates in pre clinical to late stage development The company stated that this next generation precision oncology program will help to develop treatment for indications for which current selective B RAF inhibitors remain ineffective Jazz s shares have increased 15 2 so far this year compared with the s rise of 8 7 Jazz has a history of boosting its portfolio of drugs pipeline through acquisitions or collaborations In January 2019 Jazz collaborated with Codiak BioSciences to develop and commercialize exosome therapeutics to treat cancer The company added leukemia drug Vyxeos to its portfolio with the acquisition of Celator in 2016 Moreover recently approved sleep drug Sunosi was acquired from Aerial BioPharma in 2014 Meanwhile Jazz s narcolepsy drug Xyrem which generated almost two third of total revenues will start facing generic competition as early as 2023 This may lead to significant decrease in the sales of the drug Moreover competition is increasing for Jazz as several companies are developing or marketing treatments for narcolepsy Approved drugs for narcolepsy include Teva Pharma s NYSE TEVA Provigil and Novartis NYSE NVS Ritalin SR Avadel Pharmaceuticals NASDAQ AVDL is also developing a narcolepsy candidate Successful commercialization of recently approved Sunosi and diversification into oncology indications will likely help the company offset any future decline in sales of Xyrem The company already has two marketed oncology drugs Vyxeos and Erwinaze Jazz Pharmaceuticals PLC Price
Zacks RankJazz currently has Zacks Rank 5 Strong Sell You can see Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
TEVA | Analysts weigh in on Teva after Q3 miss shares down 20 | Teva Pharmaceutical Industries TEVA 20 3 woes continue evidenced by its disappointing Q3 results and softer guidance A sampling of analysts opinions Cowen s Ken Cacciatore Risk of further declines after slashing outlook Investors should continue to stay on the sidelines Copaxone pricing pressure is nearing a 50 discount which will add more stress to 2018 results MARKET PERFORM 18 Cantor s Louise Chen Meaningful headwinds need to be addressed before the stock can recover Questions whether it can separate into two companies branded pharma and generics and whether it can continue to pay down debt Generic pricing pressure remains NEUTRAL 10 BTIG s Timothy Chiang Thinks new chief Schultz can come up with a game plan to lower costs sell assets and maximize shareholder value Generic pricing pressure in U S remains an issue BUY 16 Source Bloomberg |
XOM | Exxon rejects Beaumont refinery union proposal offers six year pact | HOUSTON Reuters Exxon Mobil Corp N XOM has rejected a contract offer from the United Steelworkers USW local chapter representing hourly workers at the company s Beaumont Texas refinery and renewed its offer of a six year contract a union official said on Wednesday Exxon has been campaigning for a longer agreement with the Beaumont workforce offering first a five year agreement and then a six year pact Sources have told Reuters Exxon wants a longer pact to avoid work stoppages if it expands the 344 600 barrel per day capacity Beaumont refinery into the nation s largest possibly reaching 850 000 bpd by the end of the decade On March 17 USW local 13 243 had offered the current four year national refinery and chemical plant workers contract plus the next contract to be negotiated in 2019 without a work stoppage The agreement would cover at least seven years Exxon put the six year proposal on the negotiating table again on Wednesday said Richard Landry USW international representative It s not about the construction it s about taking us off the pattern Landry said The pattern refers to national agreements Going off pattern is seen as reducing the negotiating strength of USW locals with corporations like Exxon Exxon has told the union the offer will remain on the table through April 19 Previous similar proposals have been rejected by the USW The contract for USW members at the Beaumont refinery expired on Feb 1 but workers have remained on their jobs on a 24 hour rolling extension of the previous contract The current proposal contains a 4 500 per member ratification bonus It requires also 90 day notice of a strike or lockout that can only be exercised after the contract expires If accepted the contract would offer the annual pay raises in the current four year national contract and would follow the annual pay raises in the 2019 national agreement
An Exxon representative was not immediately available to discuss negotiations with the USW at the Beaumont refinery |
MRO | How Marathon Oil MRO Stock Stands Out In A Strong Industry | One stock that might be an intriguing choice for investors right now is Marathon Oil Corporation NYSE MRO This is because this security in the Oil Gas US Integrated space is seeing solid earnings estimate revision activity and is in great company from a Zacks Industry Rank perspective This is important because often times a rising tide will lift all boats in an industry as there can be broad trends taking place in a segment that are boosting securities across the board This is arguably taking place in the Oil Gas US Integrated space as it currently has a Zacks Industry Rank of 16 out of more than 250 industries suggesting it is well positioned from this perspective especially when compared to other segments out there Meanwhile Marathon Oil is actually looking pretty good on its own too The firm has seen solid earnings estimate revision activity over the past month suggesting analysts are becoming a bit more bullish on the firm s prospects in both the short and long term MARATHON OIL CP Price and Consensus In fact over the past month current quarter estimates have narrowed from a loss of 28 cents per share to a loss of 24 cents per share while current year estimates have narrowed from a loss of 1 08 per share to a loss of 93 cents per share This has helped MRO to earn a Zacks Rank 2 Buy further underscoring the company s solid position So if you are looking for a decent pick in a strong industry consider Marathon Oil Not only is its industry currently in the top third but it is seeing solid estimate revisions as of late suggesting it could be a very interesting choice for investors seeking a name in this great industry segment |
MRO | Marathon Oil MRO Beats Q2 Earnings Down 1 | Marathon Oil NYSE MRO just released its Q2 2016 earnings results posting earnings of 0 23 per share and revenue of 1 3 billion
Currently Marathon has a Zacks Rank 3 Hold but it is subject to change following the release of the company s latest earnings report Here are 5 key statistics from this just announced report below
Marathon
Beat earnings estimates The company posted earnings of 0 23 per share Excluding 0 03 from non recurring items beating our Zacks Consensus Estimate of 0 24
Beat revenue estimates The company saw revenue figures of 1 3 billion beating our estimate of 1 19 billion
Second quarter total company production averaged 384 000 net boed in line with guidance U S resource play production averaged 189 000 net boed
Within six weeks of announcing our acquisition of high quality assets in the STACK oil window we ve already closed the transaction and will accelerate an additional rig on this acreage in the third quarter while still decreasing our 2016 capital budget This deal expands our inventory and further positions Marathon Oil for growth in Oklahoma at a competitive valuation Coupled with recent non core divestitures we re delivering on our objective to further concentrate our capital allocation to the lower cost higher margin U S resource plays said Marathon Oil President and CEO Lee Tillman
MRO was down 0 12 or 0 89 to 13 30 as of 4 58 p m EDT in after hours trading shortly after its earnings report was released
Here s a graph that looks at Marathon s latest earnings performance MARATHON OIL CP Price and EPS Surprise Marathon Oil Corporation is an exploration and production company with extensive operations across four core regions Africa Middle East Europe and North America
Check back later for our full analysis on Marathon s latest quarterly earnings report
If you want information on how to trade during earnings season check out the Zacks Market Edge Podcast below |
CSCO | U S Stock Market Closes Lower Dow Loses 59 Points | The euro hit a two month low on Tuesday which helped to curb risk appetite on Wall Street Stocks rose in early trade after gapping down at the open but a late day sell off sent the major averages out firmly in negative territory The Dow Jones Industrial Average fell 59 points to close at 12 756 The widely watched blue chip index traded in a range between 12 748 and 12 898 The Dow has now lost more than 4 percent in the last month The SPDR S P 500 ETF SPY lost 0 34 percent on the session to close at 137 79 Volume was a little lighter than normal with around 119 7 million SPY shares trading hands compared to a three month daily average of roughly 123 million The S P 500 is down a little less than four percent over the last month The PowerShares QQQ Trust ETF QQQ which tracks the performance of the Nasdaq 100 fell 0 69 percent to 62 98 In after hours trading however the QQQ has risen 0 32 percent after strong earnings from technology giant Cisco CSCO Crude oil followed stocks lower on the day NYMEX crude futures the U S benchmark had lost 0 49 percent to 85 15 at last check Brent crude contracts shed 0 91 percent and were last trading at 108 08 The United States Oil Fund ETF USO closed the equity session down 0 57 percent to 31 41 Precious metals were also slightly lower on Tuesday COMEX gold futures fell 0 36 percent to 1 724 70 Silver futures shed 0 24 percent to 32 45 The heavily traded SPDR Gold Trust ETF GLD lost 0 20 percent and closed at 167 10 in New York Stock Exchange trading The losses in the stock market fueled a small rally in Treasury bonds The iShares Barclays 20 Year Treasury Bond ETF TLT added 0 33 percent to 126 61 The TLT has gained a little more than 2 percent over the last month The yield on the 10 Year Note fell 1 5 basis points to 1 59 percent The U S dollar was slightly higher on the day The PowerShares DB US Dollar Index Bullish ETF UUP which tracks the performance of the greenback versus a basket of foreign currencies closed up 0 09 percent to 22 21 The closely watched EUR USD pair was last trading at 1 2705 By Scott Rubin |
CSCO | FTSE Drops To 5728 As Session Nears Close | As we approached the end of the trading day in London yesterday the FTSE is down 62 points at 5728 Equities were already in negative territory before Sir Mervyn King spoke today and after he cut the Bank of England s UK growth forecast for next year to 1 they continued on their downhill journey Ordinarily any hint of more QE would send stocks higher but today s suggestion was shrugged off by investors it s almost like markets are now immune to QE Meanwhile rising Portuguese unemployment and higher Spanish bond yields have helped to push European benchmarks into the red EU commissioner Olli Rehn today said that Spain has taken adequate action to deal with its fiscal problems but members of the Troika can hold all the talks they want it s up to the Spanish government to decide if they want a bailout or not My guess is the bond markets will eventually force Madrid to seek a bailout but while Spanish yields are under 6 Mr Rajoy will hold out as long as he can In the US Cisco systems are up nearly 7 after the company reported an 18 increase in net profit after last night s closing bell thanks to increased sales and a 1 billion cost cutting programme which helped the bottom line |
CSCO | Stocks Plummet Amid Worries About Europe Fiscal Cliff | The U S stock market recorded large losses on Wednesday as the mood on Wall Street continues to deteriorate amid worries over Europe and the fiscal cliff The Dow Jones Industrial Average fell 185 points to close at 12 571 The widely watched blue chip index traded in a range between 12 542 and 12 797 The SPDR S P 500 ETF SPY lost 1 35 percent to 135 93 The sell off caused volume to spike with around 178 6 million SPY shares trading hands compared to a 3 month daily average of 123 6 million The PowerShares QQQ Trust ETF QQQ which tracks the performance of the Nasdaq 100 fell 1 17 percent to 62 24 The losses would have been worse but a 5 percent gain for Cisco CSCO after reporting strong earnings helped the ETF Crude oil was higher on the session despite the weak stock market NYMEX crude futures the U S benchmark were last trading up 1 08 percent to 86 30 Brent crude futures climbed 1 34 percent to 109 71 and the U S Oil Fund ETF USO closed trading up 1 15 percent to 31 77 Precious metals eked out small gains COMEX gold futures were last up 0 06 percent to 1 725 80 and silver futures had risen 0 52 percent to 32 66 The heavily traded SPDR Gold Trust ETF GLD closed the day essentially flat at 167 14 The sell off in stocks helped Treasuries rise slightly The iShares Barclays 20 Year Treasury Bond ETF TLT added 0 09 percent to 126 73 The yield on the 10 Year Note was basically flat on the day at 1 59 percent The U S dollar recorded a very small loss on the session The PowerShares DB US Dollar Index Bullish ETF UUP which tracks the performance of the greenback versus a basket of foreign currencies fell 0 05 percent to 22 20 At last check the closely watched EUR USD pair was trading at 1 2746 By Scott Rubin |
CSCO | Cisco Undervalued Dividend Growth Stock Could Boost Your Retirement | We don t believe that anyone will argue against or should argue against the idea that the Internet will continue to grow for many years to come Cisco Systems CSCO is the world s largest supplier of high performance Internet networking systems and solutions According to research from Standard Poor s Corp Cisco s product families are comprised of four segments Switches represent 32 of fiscal product sales routers represent 18 new products the biggest segment representing 48 and the final category is other representing 2 of fiscal sales Cisco reported earnings yesterday and the market seems pleased with what it saw Earnings and revenues were both better than forecast We felt that the following quote from CEO John Chambers during their conference call nicely summarized the opportunity in front of Cisco and frankly its many competitors In a world of many clouds mobility bring your own device and the internet literally connecting everything The network has never played a more central role connecting people the process data and things anywhere anytime across any device In this cloud of mobile world the challenges of scale agility security and resilience can only be addressed by an intelligent network and Cisco is uniquely positioned to help our customers meet business requirements and drive this new growth However regardless of their good quarter and the well defined long term opportunity in front of them we believe that Cisco is a very undervalued blue chip technology stalwart Furthermore we believe that there are many reasons that this is the case but we also believe that none of the reasons are supported by the company s historically low valuation In other words we are suggesting that Cisco s fundamentals warrant a much higher valuation than they are currently receiving The following historical earnings and price correlated F A S T Graphs tell several interesting stories about this technology bellwether and perhaps more importantly the almost bizarre investor psychology that has been applied over the last decade and a half or so From 1999 until the great recession investors were willing to price this company at a premium valuation to its earnings justified levels the orange line on the graph However since the fall of 2008 the market has begun valuing Cisco at more realistic earnings justified levels the price aligned itself with the orange line However we believe the pendulum has now swung too far To put this into a clear perspective we can see by looking at the bottom of the graph that Cisco s earnings continued to grow at above average rates indicating that Cisco s business has not really changed that much However by looking at how the market had overpriced Cisco shares for so many years it becomes readily apparent that what has changed has been investor attitudes towards the company and its perceived value The following fiscal year end PE ratios that were applied to the company during various fiscal year ends tells the story At fiscal year end July 31 2000 Cisco s PE ratio was 142 by fiscal year 2002 the PE ratio had fallen to 49 by 2004 Cisco s PE was 29 by 2006 it was 20 by 2008 Cisco s PE ratio was 17 and by fiscal year end 2011 the PE had fallen to just above 12 Currently Cisco s blended PE ratio hovers around 10 This seems like an awful low valuation for a company that has grown earnings growth of 12 7 per annum Cisco s valuation story becomes even more confusing when you evaluate the company over its more recent history Since calendar year 2010 the following earnings and price correlating graph shows that Cisco s stock price has steadily fallen in spite of the fact that their earnings growth post recession has actually accelerated to 14 7 per annum Moreover Cisco has sweetened the pot by initiating a dividend that has grown very rapidly since it was first started Summary and ConclusionsAs this article is being written Cisco shares are trading up over 6 so perhaps the market is beginning to recognize the value in this blue chip technology bellwether However even after a 6 increase we believe that Cisco remains a very undervalued blue chip technology stalwart Longer term we are confident that the company will continue to deliver above average earnings growth and with approximately 49 billion in cash the company s financial profile is impeccable Consequently we expect to see a continuing dividend increase in the future We believe there are many drivers fueling the opportunity for Cisco s continued growth going forward These include more sophisticated utilization of the Internet requiring capacity that Cisco is well positioned to supply Although Cisco is facing more competition as many startups are bringing innovative new offerings to the market place Cisco s management appears to be on top of the situation Consequently we share the view that Cisco s new product segment will be the primary driver of future growth Furthermore we believe there is no other company in the industry that possesses the size and scale that Cisco does to continue to serve its ever expanding market Consequently we believe that Cisco represents an excellent opportunity for investors seeking a high quality stock with above average growth potential and an above average and growing dividend yield We see Cisco shares as undervalued relative to their current fundamentals an even more importantly relative to their well defined continued long term growth potential Therefore we believe that the opportunity to find such a high quality company trading at such a low valuation as Cisco currently is represents a rare opportunity that should not be overlooked Disclosure Long CSCO at the time of writing Disclaimer The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted The information in this document is believed to be accurate but under no circumstances should a person act upon the information contained within We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation Below you may find the video |
XOM | Stock Market Outlook The Sell Off Pushed The Dow Below Support | Stocks Entering Period of Seasonal Strength Today
Exxon Mobil NYSE XOM Seasonal Chart
Chesapeake Energy Corporation NYSE CHK Seasonal Chart
The Markets
Stocks took a beating on Wednesday led by sharp declines in the energy sector which took another hit following a much larger than expected build in oil inventories for the recent week Commercial Crude Oil stocks now sit at 406 7 Million barrels the highest level in decades Put in terms of days of supply the print of 26 days sits at the upper end of the range from the past four years but still well off of the highs of around 35 days recorded during the 1980 s The current level is well above the number of days of supply for this time in January which averages 23 6 Conversely the number of days of supply of Gasoline is just below the seasonal average for the past 23 years At 26 8 days the supply of Gasoline is presently less than the end of January average of 27 5 days
Still with Oil out of whack compared to seasonal averages and gasoline just below the norm for this time of year both commodities recorded pronounced declines during Wednesday s session the price of gasoline and Crude Oil are trading around 60 below where they were last June Seasonal tendencies for the price of oil and gas turn positive in February just as the supply of gasoline reaches a peak around the second week of the month It appears that the gap between supply and demand for the energy commodities still needs to narrow before a sustainable rise in price is realized
The sell off in equities on Wednesday pushed the Dow Jones Industrial Average below short term support at 17 265 other benchmarks including the S P 500 Index NASDAQ and NYSE Composite continue to remain within a tight trading range As the put call ratio has been indicating over the last few weeks investors continue to debate the next move for equity indices whether it be higher or lower Equity prices can remain volatile into February as investors continue to digest earnings
And while the levels of resistance and support continue to be monitored for the major equity indices there now appears to be a risk of head and shoulders topping patterns forming on the charts of major sector benchmarks The hint of a lower high on the charts of the Industrial Consumer Discretionary and Technology sector benchmarks could be setting up this bearish pattern which would be confirmed upon a break below support at the January lows Downside potential falls within the range of 6 to 9 for each sector enough to classify the decline from the December peak as a correction The Industrial and Consumer Discretionary sectors remain seasonally positive through to April and May
Sentiment on Wednesday as gauged by the put call ratio ended close to neutral at 0 97
Seasonal charts of companies reporting earnings today
S P 500 Index
TSE Composite
Horizons Seasonal Rotation ETF TO HAC
Closing Market Value 15 55 down 0 38
Closing NAV Unit 15 54 down 0 46
Performance
performance calculated on Closing NAV Unit as provided by custodian
Disclaimer Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities As always the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends |
XOM | Oil Retreats As Effects From 4Q Earnings Fade | Talking Points
Oil retreats following a 3 day rally
BP NYSE BP and Exxon Mobil NYSE XOM Mobile report disappointing 4Q earnings
Brent has advanced 30 from its lows but remains below 200 MVA
Potentially finding near term support oil rallied for 3 days before pausing on Wednesday The gains were driven by 4Q industry reports and operational changes Nonetheless analysts still consider Brent to be in a downtrend noting however that prices could consolidate for a period of time
With the setback in crude prices largely considered a supply side challenge the commodity s price rose on 4Q earnings reports suggestive of potential supply reductions Among the world s largest oil companies both BP and Exxon Mobile reported losses on the 4th quarter the former s profit down to 2 2 billion from 2 8 billion while the latter s fell from 8 4 billion to 6 6 billion As a result BP expects to reduce their exploration expenditure and postpone select project advancements in 2015 capital expenditure is to fall from 24 26 billion to 20 billion
Investors also noted that the rig count in North America was down 19 1 in the week ending January 30 The number in operation fell 13 6 y y in the United States and 32 5 y y in Canada However at face value the data may not be withstanding in its positive effect on the price of oil
The nominal decline in operational rigs may not equate to an equal percentage loss in drilling It is more likely that the least productive rigs were taken offline first Furthermore 4Q reports for BP and Exxon Mobile were not all doom and gloom The last of BP s 15 upstream projects outlined in 2011 began operations in December and their net debt remains within the 10 20 target Furthermore the oil company ended the year with secured rights for new exploration access in the North Sea Gulf of Mexico and Egypt In similar fashion Exxon completed a record 8 major projects in 2014 and looks to pursue a broad exploration program in Argentina and Romania in 2015
Chart Created by Walker England Using MarketScope2 0 |
TEVA | Abeona s gene therapy ABO 102 shows durable treatment effect in Sanfilippo study | One year data from Cohort 1 in Abeona Therapeutics ABEO 1 9 Phase 1 2 clinical trial assessing a single IV injection of gene therapy ABO 102 in patients with Sanfilippo syndrome Type A MPS IIIA showed a significant and durable treatment effect The results were announced during the Alliance for Regenerative Medicine s Cell and Gene Therapy Meeting on the Mesa in La Jolla CA One year after receiving a single administration of ABO 102 two patients out of six experienced statistically significant 69 3 reductions in cerebral spinal fluid heparan sulfate the sugar molecule that is the hallmark of the disease One patient was unable to be accessed due to an adverse event unrelated to ABO 102 Durable biophysical reductions of disease burden were observed in the liver in particular as was preservation of key deep brain areas Cohort 1 subjects showed normalization of liver volumes of 80 much better than 220 in untreated patients per natural history ABO 102 has Fast Track Orphan Drug and Rare Pediatric Disease status in the U S According to ClinicalTrials gov the estimated primary completion date of the study is December 2019 Sanfilippo syndrome Type A is a rare inherited lysosomal storage disorder caused by a deficiency in an enzyme needed to break down heparan sulfate It manifests in young children and is characterized by facial malformations stiff joints and excessive hair growth Now read |
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