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XOM | Trading With Probability Trailing Stops | Generic trailing stops maintain a steady pip distance between the most favorable price seen and the stop loss One thing that I don t like about this is that trailing stops ignore the take profit My goal is to increase the information available by using a trailing stop in the context of a take profit The only information needed for doing so is the ratio between the stop loss and take profit If I use a 50 pip take profit and a ratio of 1 for example then the stop loss is also 50 pips If I used a ratio of 2 then the stop loss is 100 pips As the price moves closer to the take profit the stop loss should maintain the same ratio over the remaining distance The original take profit was 50 pips Say that the price increased 20 Only 30 pips remain to hit the profit target The probability trailing stop adjusts the stop loss to 30 pips from the current price if the ratio is 1 If the ratio was 2 then the stop would adjust to 30 2 60 pips The idea was that perhaps the stop loss should ratchet closer to the take profit as it becomes increasingly likely to occur An easier way to think about where to set the stop is to ask How many pips are left until the trade hits its take profit If the answer is 40 then the stop loss adjusts to 40 pips away from the current price and not the entry If the answer is 25 the stop loss changes to 25 pips from the current price The stop loss adjusts faster and faster as a trade nears its take profit Changing the stop ratio to something like 0 5 makes it more complicated If 40 pips remain before a trade reaches its limit then the stop loss adjusts to 40 0 5 20 pips away If 25 pips remain then the stop ratchets to only 12 5 pips away Test ResultsI backtested the idea using a variety of forex pairs and DOW 30 stocks for the first quarter of 2009 The direction of a trade whether long or short was chosen using a random number The date chosen was simply because I have M1 data for multiple instruments The broad spectrum of results would reflect the same trend regardless of the time periods used All backtests were on M1 charts The unit sizes of the trades don t matter much I set the trade size to a standard lot on forex pairs and 1 000 shares for equities trades All used a 50 tick take profit with an equidistant stop loss the stop loss ratio was 1 0 The profit factors help keep the information consistent among the different instruments Instrument Profit FactorEUR USD 0 96USD CAD 0 88DIS 0 91MSFT 1 0WMT 0 87XOM 0 87All of these backtests involve a minimum of 300 trades The EUR USD backtest included more than 1 700 trades The sample size for all tests are more than sufficient for drawing a conclusion Using a probability stop with a ratio of 1 0 is a bad idea Although the equity curves naturally varies among instruments and would differ using new random numbers the equity curve below shows what it generally looks like The entry efficiency of the system appears solid However that is because the worst possible exit always shifts up The idea trades exit efficiency for a hint of entry efficiency Knowing that the trades pick their direction using random numbers it is not worthwhile to get excited about this seemingly non random metric The losses have to come from somewhere Clearly as the exit efficiency image demonstrates it results from the terrible exit efficiency Results typically ranged from 35 40 Although the tests for a stop ratio of 1 0 look terrible all is not lost I can flip this on its head and turn it into a profitable concept by blending it with the random trailing limit Outcomes using a ratio of 3 0 also offer potential hope We ll cover those outcomes in future posts |
XOM | A Long Entry Into Exxon Mobil | And I am talking long in both senses of the word Back in August I saw interesting price action in Exxon Mobil XOM and discussed it in Exxon Mobil Set to Become a 500 Billion Company The breakout did come on September 6th I missed it probably getting lunch or something and it settled a few days later Without any stock I took to planning an entry This would happen at either a breakout of the consolidation or a retest and hold lower I was presented with the latter as it started falling in mid October A potential bottom hit on November 15th 1 on the chart below It was noted by the doji candle that touched the 200 day Simple Moving Average I chose to employ an options strategy for an entry The strategy I used is known as selling a naked put or a In this strategy you sell a put naked at a strike price where combined with the premium you receive from selling that put you are comfortable owning the stock Expecting a move back higher I sold to open December 87 50 Puts for 2 71 A close below 87 50 on December 22 expiry would end up with me owning the stock with a basis of 84 79 87 50 less the 2 41 premium below the level at the time Of course that would not be such a good level if the stock continued lower to 80 Time went by and then into the December Expiry week I was presented with an option Face assignment or roll the puts out for more time On December 22nd rather than take assignment I bought the December 87 5 Puts back for 35 cents and sold to open the weekly December 28 Expiry 87 5 Puts for 98c lowering my potential basis to 84 16 2 if I were to be assigned the following week The stock continued lower into December 28th with all the mumbo jumbo on the fiscal cliff so with the same option assignment or roll I elected to give it another week This time I bought to close the December 28 Expiry 87 5 Strike Puts and sold to open the January 4 Expiry 87 50 Strike Puts for a credit of 28 cents 3 lowering the basis again to 83 88 Which brings us to today With the prospect of the January 4 Expiry Puts expiring worthless tomorrow my choice is to book the 3 62 gain since November 15th or rollout again 4 I chose more time again buying to close the January 4 Expiry Puts and selling the January monthly 87 5 Puts for a further 45 cent credit dropping the basis again to 83 43 I will eventually take assignment on this stock but might still roll it one or two more times before the next ex dividend date I like that it continues to hold over the long term breakout level at 85 60 on the weekly chart In the meantime I am holding a 4 6 gain that if it stands up over the next two weeks annualizes to 27 6 In ExxonMobil Disclaimer 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 |
TEVA | SolarEdge SEDG And Teva TEVA Are Blowouts | SolarEdge SEDG has reported back to back big beats the most recent one was a blowout Brian Bolan notes that revenue guidance was much better than expected and there is an indication that margins might surprise to the upside as well Brian kills us at the end of the segment with a horrible solar stock pun Teva Pharma TEVA is being blown off the books after a big miss and weak guidance Brian touches on an industry that is particularly hard hit by the opioid crisis and let s those afflicted by it know there is help available for them
One Simple Trading IdeaSince 1988 the Zacks system has more than doubled the S P 500 with an average gain of 25 per year With compounding rebalancing and exclusive of fees it can turn thousands into millions of dollars This proven stock picking system is grounded on a single big idea that can be fortune shaping and life changing You can apply it to your portfolio starting today |
TEVA | Teva Notches Near Term Technical Low | Shares of Teva Pharmaceutical Industries NYSE TEVA have finally put in a near term low The stock is jumping over 3 5 but more importantly it has broken out of a bullish inverse head and shoulder pattern The breakout signals further upside I have a penciled target in of 20 35 Teva Pharmaceutical Industries has fallen sharply of late dropping from near 33 00 to 17 in the last few weeks The bounce I expect is only a near term move over the next month or so Once the upside target is achieved exit and look to buy the pull back |
TEVA | Israel stocks higher at close of trade TA 25 up 1 41 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Communication Oil Gas and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 gained 1 41
The best performers of the session on the TA 25 were Delek Group TA DLEKG which rose 5 85 or 5050 points to trade at 91400 at the close Meanwhile Avner L TA AVNRp added 5 35 or 11 5 points to end at 226 5 and ICL Israel Chemicals Ltd TA ICL was up 4 70 or 97 points to 2162 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 69 or 610 points to trade at 22080 at the close Perrigo TA PRGO declined 2 23 or 1390 points to end at 61080 and Osem TA OSEM was down 0 54 or 41 points to 7608
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 241 to 88 and 114 ended unchanged
Crude oil for November delivery was up 0 60 or 0 29 to 48 82 a barrel Elsewhere in commodities trading Brent oil for delivery in November rose 0 95 or 0 49 to hit 52 41 a barrel while the December Gold contract rose 0 04 or 0 50 to trade at 1146 90 a troy ounce
USD ILS was down 0 29 to 3 8457 while EUR ILS fell 0 60 to 4 3215
The US Dollar Index was up 0 13 at 95 65 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 99 | Investing com Israel stocks were lower after the close on Thursday as losses in the Insurance Oil Gas and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 99
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 45 or 540 points to trade at 22620 at the close Meanwhile Ormat Technologies TA ORA fell 0 14 or 20 points to end at 14070 and ICL Israel Chemicals Ltd TA ICL was down 0 19 or 4 points to 2158 in late trade
The worst performers of the session were Mizrahi Tefahot TA MZTF which fell 2 77 or 129 points to trade at 4535 at the close Delek Group TA DLEKG declined 2 63 or 2400 points to end at 89000 and Frutarom TA FRUT was down 2 49 or 380 points to 14900
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 172 to 133 and 139 ended unchanged
Crude oil for November delivery was up 1 51 or 0 72 to 48 53 a barrel Elsewhere in commodities trading Brent oil for delivery in November rose 1 65 or 0 84 to hit 52 17 a barrel while the December Gold contract fell 0 38 or 4 40 to trade at 1144 30 a troy ounce
USD ILS was up 0 12 to 3 8600 while EUR ILS rose 0 46 to 4 3513
The US Dollar Index was down 0 21 at 95 45 |
TEVA | Israel stocks lower at close of trade TA 25 down 1 13 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Insurance Financials and Banking sectors led shares lower
At the close in Tel Aviv the TA 25 declined 1 13
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 05 or 460 points to trade at 22940 at the close Meanwhile Perrigo TA PRGO added 1 72 or 1060 points to end at 62550 and Delek Drilling LP TA DEDRp was up 0 34 or 4 points to 1173 in late trade
The worst performers of the session were Discount TA DSCT which fell 3 45 or 25 0 points to trade at 700 6 at the close Leumi TA LUMI declined 2 98 or 45 points to end at 1466 and Bezeq TA BEZQ was down 2 82 or 21 0 points to 725 0
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 223 to 86 and 136 ended unchanged
Crude oil for November delivery was up 2 44 or 1 15 to 48 25 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 1 49 or 0 75 to hit 51 00 a barrel while the December Gold contract rose 0 21 or 2 50 to trade at 1167 00 a troy ounce
USD ILS was up 0 87 to 3 8679 while EUR ILS rose 0 95 to 4 3976
The US Dollar Index was down 0 03 at 94 86 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 88 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Communication Real Estate and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 88
The best performers of the session on the TA 25 were Israel Corp TA ILCO which rose 6 77 or 6270 points to trade at 98900 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 6 33 or 128 points to end at 2149 and Bezeq TA BEZQ was up 5 52 or 40 0 points to 765 0 in late trade
The worst performers of the session were Teva TA TEVA which fell 3 88 or 890 points to trade at 22050 at the close Nice TA NICE declined 2 57 or 560 points to end at 21200 and Perrigo TA PRGO was down 2 48 or 1550 points to 61000
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 163 to 134 and 146 ended unchanged
Crude oil for November delivery was down 1 35 or 0 63 to 46 03 a barrel Elsewhere in commodities trading Brent oil for delivery in December fell 0 74 or 0 37 to hit 49 32 a barrel while the December Gold contract rose 0 94 or 10 90 to trade at 1176 30 a troy ounce
USD ILS was down 0 30 to 3 8548 while EUR ILS rose 0 20 to 4 4082
The US Dollar Index was down 0 51 at 94 32 |
TEVA | Israel stocks higher at close of trade TA 25 up 1 15 | Investing com Israel stocks were higher after the close on Sunday as gains in the Insurance Technology and Biomed sectors led shares higher
At the close in Tel Aviv the TA 25 gained 1 15
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 4 88 or 174 points to trade at 3740 at the close Meanwhile Nice TA NICE added 3 72 or 790 points to end at 22000 and Teva TA TEVA was up 3 14 or 710 points to 23340 in late trade
The worst performers of the session were Isramco L TA ISRAp which fell 1 30 or 0 9 points to trade at 68 4 at the close Osem TA OSEM declined 1 21 or 91 points to end at 7412 and ICL Israel Chemicals Ltd TA ICL was down 0 96 or 21 points to 2159
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 208 to 100 and 135 ended unchanged
Crude oil for November delivery was up 1 89 or 0 88 to 47 26 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 1 50 or 0 74 to hit 50 48 a barrel while the December Gold contract fell 0 90 or 10 70 to trade at 1176 80 a troy ounce
USD ILS was up 0 56 to 3 8352 while EUR ILS rose 0 17 to 4 3522
The US Dollar Index was up 0 33 at 94 76 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 11 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Biomed Communication and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 11
The best performers of the session on the TA 25 were Strauss Group TA STRS which rose 2 92 or 162 points to trade at 5701 at the close Meanwhile Delek Group TA DLEKG added 2 77 or 2440 points to end at 90400 and Frutarom TA FRUT was up 2 66 or 390 points to 15050 in late trade
The worst performers of the session were Israel Corp TA ILCO which fell 2 04 or 2050 points to trade at 98250 at the close Teva TA TEVA declined 1 71 or 400 points to end at 22950 and ICL Israel Chemicals Ltd TA ICL was down 1 32 or 28 points to 2094
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 184 to 117 and 142 ended unchanged
Crude oil for December delivery was up 0 95 or 0 44 to 46 72 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 0 65 or 0 32 to hit 48 92 a barrel while the December Gold contract rose 0 43 or 5 10 to trade at 1177 90 a troy ounce
USD ILS was up 0 05 to 3 8532 while EUR ILS rose 0 16 to 4 3700
The US Dollar Index was down 0 14 at 94 88 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 73 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Oil Gas Communication and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 73
The best performers of the session on the TA 25 were Avner L TA AVNRp which rose 3 98 or 9 5 points to trade at 248 4 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 3 63 or 76 points to end at 2170 and Delek Drilling LP TA DEDRp was up 3 52 or 44 points to 1293 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 5 24 or 201 points to trade at 3632 at the close Teva TA TEVA declined 4 88 or 1120 points to end at 21830 and Perrigo TA PRGO was down 3 73 or 2370 points to 61230
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 173 to 154 and 121 ended unchanged
Crude oil for December delivery was down 1 73 or 0 80 to 45 49 a barrel Elsewhere in commodities trading Brent oil for delivery in December fell 1 37 or 0 67 to hit 48 05 a barrel while the December Gold contract fell 0 99 or 11 70 to trade at 1165 80 a troy ounce
USD ILS was up 0 36 to 3 8689 while EUR ILS rose 0 32 to 4 3878
The US Dollar Index was up 0 03 at 94 93 |
TEVA | Israel stocks higher at close of trade TA 25 up 2 27 | Investing com Israel stocks were higher after the close on Sunday as gains in the Oil Gas Banking and Communication sectors led shares higher
At the close in Tel Aviv the TA 25 rose 2 27 to hit a new 1 month high
The best performers of the session on the TA 25 were Teva TA TEVA which rose 5 88 or 1290 points to trade at 23240 at the close Meanwhile OPKO Health Inc TA OPK added 5 26 or 187 points to end at 3740 and Delek Group TA DLEKG was up 3 79 or 3600 points to 98660 in late trade
The worst performers of the session were Azrieli Group TA AZRG which fell 0 07 or 10 points to trade at 15350 at the close First International Bank of Israel TA FTIN declined 0 02 or 1 points to end at 5019 and Mizrahi Tefahot TA MZTF was up 0 78 or 37 points to 4757
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 172 to 141 and 135 ended unchanged
Crude oil for December delivery was down 1 39 or 0 63 to 44 75 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 0 00 or 0 01 to hit 48 09 a barrel while the December Gold contract fell 0 17 or 2 00 to trade at 1164 10 a troy ounce
USD ILS was up 0 38 to 3 8949 while EUR ILS fell 0 39 to 4 2932
The US Dollar Index was up 0 78 at 97 18 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 68 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Biomed Technology and Communication sectors led shares lower
At the close in Tel Aviv the TA 25 declined 0 68
The best performers of the session on the TA 25 were Perrigo TA PRGO which rose 1 27 or 750 points to trade at 59990 at the close Meanwhile Frutarom TA FRUT added 0 56 or 90 points to end at 16200 and Teva TA TEVA was up 0 39 or 90 points to 23030 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 4 35 or 160 points to trade at 3520 at the close Nice TA NICE declined 2 34 or 530 points to end at 22130 and Discount TA DSCT was down 1 97 or 14 4 points to 718 1
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 177 to 152 and 119 ended unchanged
Crude oil for December delivery was down 2 25 or 0 99 to 42 99 a barrel Elsewhere in commodities trading Brent oil for delivery in December fell 1 65 or 0 79 to hit 46 76 a barrel while the December Gold contract rose 0 08 or 0 90 to trade at 1167 10 a troy ounce
USD ILS was down 0 23 to 3 8635 while EUR ILS fell 0 30 to 4 2698
The US Dollar Index was up 0 00 at 96 92 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 11 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Technology Biomed and Insurance sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 11
The best performers of the session on the TA 25 were Frutarom TA FRUT which rose 3 52 or 570 points to trade at 16770 at the close Meanwhile Teva TA TEVA added 2 95 or 680 points to end at 23710 and OPKO Health Inc TA OPK was up 2 61 or 92 points to 3612 in late trade
The worst performers of the session were Avner L TA AVNRp which fell 2 68 or 7 0 points to trade at 254 1 at the close Strauss Group TA STRS declined 2 49 or 145 points to end at 5669 and ICL Israel Chemicals Ltd TA ICL was down 1 73 or 38 points to 2164
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 191 to 126 and 130 ended unchanged
Shares in Frutarom TA FRUT rose to all time highs up 3 52 or 570 to 16770
Crude oil for December delivery was up 5 44 or 2 35 to 45 55 a barrel Elsewhere in commodities trading Brent oil for delivery in December rose 4 28 or 2 00 to hit 48 81 a barrel while the December Gold contract rose 1 20 or 14 00 to trade at 1179 80 a troy ounce
USD ILS was down 0 17 to 3 8668 while EUR ILS fell 0 02 to 4 2799
The US Dollar Index was down 0 29 at 96 75 |
XOM | Exxon Mobil Q1 EPS USD2 12 vs expectations of USD2 04 | Investing com The world s largest oil and gas company Exxon Mobil reported better than expected first quarter earnings ahead of Thursday s opening bell Earlier in the day in its first quarter earnings report Exxon said earnings per share came in at USD2 12 above expectations for USD2 04 per share The company s first quarter revenue totaled USD108 81 billion missing forecasts for sales of USD109 5 billion Exxon said it bought back 63 million shares in the first quarter Following the release of the report shares in XOM rose 0 5 in pre market trade Meanwhile the outlook for U S equity markets remained higher The Dow Jones Industrial Average futures indicated a gain of 0 3 at the open S P 500 futures pointed to a rise of 0 4 and Nasdaq 100 futures indicated an increase of 0 5 |
XOM | U S futures point to higher open after Fed Dow Jones up 0 7 | Investing com U S stock futures pointed to a broadly higher open on Thursday after the Federal Reserve gave no indications on whether it will begin to taper its bond buying program in the near future Stronger than expected data on manufacturing activity out of the euro zone and China further supported gains Ahead of the open the Dow Jones Industrial Average futures pointed to a gain of 0 7 at the open S P 500 futures indicated an increase of 0 7 while the Nasdaq 100 futures pointed to a 0 7 rise At the conclusion of its two day policy meeting on Wednesday the Fed said it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is modest In earnings news Time Warner Cable shares could be active after the company reported second quarter earnings per shares of USD1 69 above market expectations for USD1 65 Revenue during the period totaled USD5 55 billion below forecasts of USD5 57 billion Other stocks likely to be in focus included Dow components Exxon Mobil and Procter Gamble both scheduled to post results ahead of the opening bell Later in the day the U S was to publish official data on weekly unemployment claims followed by a report by the Institute of Supply Management on manufacturing activity Market players also looked ahead to highly anticipated data on U S nonfarm payrolls due on Friday for indications of how the recovery in the U S labor market is progressing Across the Atlantic European stock markets were higher after data indicated that the slump in the euro zone s manufacturing sector is easing The EURO STOXX 50 rose 0 7 France s CAC 40 added 0 4 Germany s DAX edged rallied 1 1 while Britain s FTSE 100 gained 0 3 Data released earlier showed that July s manufacturing purchasing managers index improved to a two year high of 50 3 from 48 8 in June Germany s manufacturing PMI was revised up to an 18 month high of 50 7 in July from a final reading of 48 6 in June and above the preliminary reading of 50 3 Elsewhere in Europe the U K manufacturing PMI rose to 54 6 in July the fastest rate of growth in 28 months Market players now looked ahead to policy decisions from the Bank of England and the European Central Bank later in the session During the Asian trading session Hong Kong s Hang Seng Index rose 0 95 while Japan s Nikkei 225 Index surged 2 5 on the back of a slew of upbeat earnings reports Sentiment was also buoyed following the release of stronger than expected data on Chinese factory activity A government report released earlier in the session showed that China s manufacturing purchasing managers index rose unexpectedly to 50 3 in July from 50 1 in June A reading above 50 0 indicates industry expansion below indicates contraction |
XOM | Crude Trims Gains With Jobs Data In Focus | Crude oil fell on Friday for the first time in four days as caution is seen building up ahead of the key jobs data from the United States later in the day while two refineries remained shut on the U S East coast after hurricane Sandy Crude is trading as of this writing around the 86 70 a barrel with the highest at 87 03 and the lowest at 86 55 Brent is trading around the 107 85 a barrel after falling about 27 as supply concerns in the Middle East and the North Sea eased U S employers probably added 125 000 workers in October while the unemployment rate probably advanced to 7 9 Data today may also show manufacturing in the euro area contracted for a 16th month signaling weakening fuel demand The U S East Coast continues to struggle recovering from hurricane Sandy where two refineries remained shut on the area while demand may need a while to rebound as the infrastructure is still damaged limiting driving and gasoline use Yet the sentiment is that very negative after yesterday s reports showed that consumer confidence in the U S improved sharply while the private jobs rose in October at the fastest pace in eight months a sign of modest recovery in the labor market Moreover the U S manufacturing activity showed modest improvement while in China the world s second biggest oil consumer the industrial activity rose in October confirming a trend toward recovery The positive economic data the slow recovery from the storm that threatens to delay fuel deliveries while crude inventories unexpectedly fell last week by 2 05 million barrels as imports dropped sharply crude is set to post its first weekly rise in three weeks Yet as markets are waiting for the jobs report today oil prices could rise today if the outcome turns out better than expected However weaker than expected data could determine oil prices to extend their losses ending the week in a negative territory Exxon Mobil Corp the world s largest energy company by market value posted net profits that exceeded the highest estimates Third quarter profit was 9 57 billion or 2 09 a share compared with 2 07 a share expected yet lower than the 2 13 a year earlier |
XOM | U S Shale Gas Won t Last Ten Years Q A With Bill Powers | The shale gas miracle is overhyped and bound to disappoint That s what energy expert Bill Powers argues in his upcoming book But Powers tells The Energy Report that this could be a very good thing for oil and gas companies and their shareholders and he is placing his bets accordingly The Energy Report Bill you have a new book coming out next spring entitled Cold Hungry and in the Dark Exploding the Natural Gas Supply Myth What is your basic argument Bill Powers My thesis is that the importance of shale gas has been grossly overstated the U S has nowhere close to a 100 year supply This myth has been perpetuated by self interested industry media and politicians Their mantra is that exploiting shale gas resources will promote untold economic growth new jobs and lead us toward energy independence In the book I take a very hard look at the facts And I conclude that the U S has between a five to seven year supply of shale gas and not 100 years That is far lower than the rosy estimates put out by the U S Energy Information Administration and others In the real world many companies are taking write downs of their reserves Importantly I give examples of how certain people and institutions are promoting the shale gas myth even as they benefit from it economically This book will change a lot of opinions about how large the shale gas resources really are in the U S and around the planet TER How did you obtain your information BP I spent three years doggedly researching this book Most of the information came from publicly available sources I used a fair amount of work done by Art Berman who has written the forward for the book Art is a leading expert on determining the productivity of shale gas plays I contacted a lot of other geologists and petroleum engineering professionals and had them review my conclusions about declining production Put simply There is production decline in the Haynesville and Barnett shales Output is declining in the Woodford Shale in Oklahoma Some of the older shale plays such as the Fayetteville Shale are starting to roll over As these shale plays reverse direction and the Marcellus Shale slows down its production growth overall U S production will fall At the same time Canadian production is falling And Canada has historically been the main natural gas import source for the U S In fact Canada has already experienced a significant decline in gas production about 25 since a peak in 2002 and has dramatically slowed its exports to the United States TER What does this mean for investors BP The decline is a set up for a gas crisis a supply crunch that will lead to much higher prices similar to what we saw in the 1970s Interestingly during the lead up to that crisis the gas industry mounted a significant advertising campaign trumpeting the theme There s plenty of gas Now it is true that there was a huge ramp up for gas during the post World War II period that lasted through the late 1960s as demand for gas for the U S manufacturing base grew rapidly But we hit a production peak in the early 1970s during a time of rapidly growing demand This led to a huge spike in prices that lasted until 1984 It was very difficult to destroy demand so the crisis was resolved by building hundreds of coal fired power plants and dozens of nuclear power plants But today gas fired plants are popular as we try to turn away from coal This time around those options are no longer available Nuclear plants are still an option but the time and money involved in keeping our aging nuclear power plant fleet operational let alone building new plants will be quite significant TER How will the contraction of the natural gas supply affect its price BP We will see a new equilibrium price for gas at much higher levels than the present I vehemently disagree with industry observers who say that the U S is the next big exporter of liquefied natural gas LNG I believe that the U S will soon be increasing LNG imports and that U S prices will move back to world levels We are currently seeing between 13 per thousand cubic feet Mcf and 15 Mcf in South America as Brazil and Argentina import LNG We re seeing 17 Mcf in Japan and similar prices in Korea The only place that is not increasing its LNG imports right now is Europe and that is being made up for by increasing demand in Asia TER How will a contracting supply affect the prospects of companies that are exploring and developing gas fields in North America today BP The companies that can find new reserves of oil and gas will enter a golden era as prices skyrocket There has been a lot of consolidation in the industry over the last five years In Canada very few juniors have started up since 2007 This is the fifth anniversary of the Halloween Massacre when the Canadian government changed the laws regarding trusts which really shrank the amount of capital going into junior companies The bigger North American companies are consolidating because it is harder to acquire prospective land Plus the cost of drilling wells has gone up But juniors that can find new reserves and that can increase production per share and cash flow per share will have a wonderful rise over the next three to five years Companies are helped by the upward trend of ever higher oil prices and we will soon see much higher gas prices And remember all of this is happening at a time of historically low interest rates So companies that can get to critical size and borrow money at today s low rates have a chance to deploy that capital into some very high return projects Good companies are trading at historically low multiples of cash flow or multiples of NAV net asset value So there are some great values out there that really make the energy sector attractive TER What names do you like in the shale oil and gas space BP Among larger U S companies I like a 7 billion 7B company called Denbury Resources Inc DNR It is the second largest producer of carbon dioxide CO2 flooded oil or enhanced oil recovery using CO2 Denbury just sold its Bakken assets to Exxon Mobil Corp XOM for 1 5 billion B It has a very very large resource base and growing production from its CO2 fields It is very well managed and well capitalized Oil sands producers will benefit such as MEG Energy MEG which is ramping up production There has not been a lot of interest in the oil sands over the last couple of years because of the price differential between what the oil sands producers are getting and the higher price of WTI or Brent But the differential has started to narrow during the last few weeks and that is really going to benefit oil sands firms Another company that is very well positioned in the process of splitting itself apart is Petrobank Energy Resources Ltd PBG It is divesting ownership of its Petro Bakken assets to shareholders Petro Bakken has a very unique set of assets Even though it has had operational issues over the last couple of years it will still be producing over 50 000 barrels a day going into year end It also pays a very substantial dividend so investors in that company are getting paid to wait On the gas side Advantage Oil and Gas Ltd AAV is very well managed and has a fine asset base It is a very low cost producer and has a lot of room to grow profitably in a higher gas price environment which is where we are headed PetroQuest Energy Inc PQ has good assets in the Mississippi Lime and significant offshore assets with high production wells Management has done a good job during a period of low gas prices by bringing in partners and hedging their risks The company has kept its balance sheet intact and is well positioned to take advantage of a turn in gas prices TER Does your analysis about the looming contraction in the supply of shale gas apply to shale oil BP Shale oil is a significant resource of course but it is not a game changer It is in the same category with shale gas The Bakken is a very material resource and it will provide decades of production However Bakken production has peaked in Saskatchewan It has peaked in Montana It is approaching its peak in North Dakota This does not mean that we are running out of drilling locations or that production is going to fall off a cliff tomorrow However I expect production to plateau before long Something similar is happening in the Eagle Ford in Texas A lot of the wells there have extremely high decline rates and production may be hitting a plateau In the overall context of the United States we see a continuous decline in the Gulf of Mexico and California There is significant decline in Alaska Those producers are struggling to keep up the flow through the Alyeska pipeline without having to do a major retrofit of the pipeline to put in more pumps due to the low throughput pressure We are seeing a decline in California of about 15 000 barrels every year The overall increase in oil production in the U S in the last few years has been wonderful but many oil fields are getting long in the tooth and I would expect a plateau to soon emerge TER Will decline spur investment in alternative energy sources BP Yes absolutely Electricity prices are often set by the highest cost producer Until recently those electricity producers used natural gas as their feedstock Low natural gas prices have depressed electricity prices in some areas This makes the economics of a lot of alternative energy projects very difficult But as gas prices rise electricity prices will also rise This will make solar and wind projects more viable For example in California electricity prices rose significantly over the last decade despite falling gas prices But as the efficiency of solar panels has improved solar costs have declined and reached grid parity Residential solar makes a lot of sense in California And as solar efficiencies continue to improve costs will continue to fall TER Let s talk about shifting patterns of supply and demand for natural gas around the world How will this impact the North American producers BP Let s start by looking at Trinidad and Tobago which supplies the United States with 50 of its LNG imports The country has taken huge write down of its gas reserves Production declined in 2011 and will likely decline again in 2012 The country has only nine years of proven reserves left Trinidad and Tobago needs to find new sources of gas to feed the very large fertilizer plants operating on the island and maintain exports Another example of declining gas exports is Indonesia Historically Indonesia has been the largest exporter of LNG in Asia In 2006 the Indonesian government changed the law to focus more on internal consumption and to create jobs for 200 million 200M people It cut down on LNG exports beginning in 2007 I expect that trend to continue as the country switches from being an oil exporter to an oil importer In the Middle East the United Arab Emirates was an exporter of LNG for decades it is now an importer Dubai imports LNG Fujairah will soon become an importer Kuwait now imports LNG Oman has reduced exports to focus on building its steel industry The trend of decline is happening everywhere I discuss this quite a bit in my book TER Do you think that international markets pay enough attention to finding and developing new oil and gas resources BP It s a very difficult thing to explore as the world becomes more and more resource mature and resource nationalism rises It is very difficult to explore off the coast of Nigeria or in Russia or in Iraq where the political situation is very unstable Fifteen years ago Exxon Mobil was divesting its onshore U S assets Now Statoil ASA STO has come to the United States in a significant way for the Bakken BHP Billiton Ltd BHP is buying into the shale gas and shale oil business in the United States Frankly onshore in North America is not the easiest place to operate But there are not a lot of other options available right now TER What are the likely impacts in industrial and residential demand in oil and gas prices for North America during the next decade or so BP Efficiency will improve The U S has already dropped its demand for oil by about 2M barrels from its peak in 2007 Part of this was due to the recession part of it is due to an increase in the miles per gallon standard The trend will continue as it becomes more and more unaffordable for people to drive cars And we will see efficiencies in the structure of the electricity grid The U S currently wastes around two thirds of the consumable electricity that goes into the power grid through line loss I envision a trend toward distributed energy production People will put solar panels on their rooftops and sell sun power to their neighbors The big utilities are fighting this tooth and nail in California But there is a movement toward electricity co ops As electricity becomes more expensive people will find other ways to conserve Demand will increase for residential geothermal heating and cooling the economics of geothermal home heating and cooling systems have improved drastically in the last 20 years and it continues to get better We will also see the emergence of an electric car industry It s had a rocky start but it will move forward as gas prices in the U S go north of 5 per gallon TER How much weight do you suggest that investors put on gas shares in their portfolios BP It depends upon the individual investor s profile Everybody is different But there are some great gas companies that are fairly cheap Ultra Petroleum Corp UPL is a very inexpensive well run low cost producer The bottom line is that investing in things that are out of style at the moment are often the greatest investments TER It s been a very interesting talk Bill thank you BP You are quite welcome Bill Powers is the editor of Powers Energy Investor and is also the author of the upcoming book Cold Hungry and in the Dark Exploding the Natural Gas Supply Myth Powers has devoted the last 15 years to studying and analyzing the energy sector driven by his desire to uncover unrecognized trends in the industry and identify outstanding opportunities for retail and institutional investors DISCLOSURE 1 Peter Byrne of The Energy Report conducted this interview He personally and or his family own shares of the following companies mentioned in this interview None 2 The following companies mentioned in the interview are sponsors of The Energy Report None 3 Bill Powers I personally own shares of the following companies mentioned in this interview None I personally and or my family am paid by the following companies mentioned in this interview None I was not paid by Streetwise Reports for participating in this story |
TEVA | Israel stocks lower at close of trade TA 25 down 0 36 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Insurance Biomed and Oil Gas sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 36
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 46 or 640 points to trade at 26640 at the close Meanwhile Nice TA NICE added 0 57 or 140 points to end at 24760 and Azrieli Group TA AZRG was up 0 38 or 60 points to 15850 in late trade
The worst performers of the session were Osem TA OSEM which fell 3 17 or 253 points to trade at 7734 at the close Strauss Group TA STRS declined 3 16 or 186 points to end at 5696 and Ormat Technologies TA ORA was down 2 43 or 370 points to 14880
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 177 to 139 and 131 ended unchanged
Crude oil for September delivery was up 2 13 or 0 96 to 46 13 a barrel Elsewhere in commodities trading Brent oil for delivery in September rose 1 36 or 0 68 to hit 50 20 a barrel while the December Gold contract rose 0 18 or 2 00 to trade at 1091 40 a troy ounce
USD ILS was up 0 33 to 3 7872 while EUR ILS rose 0 43 to 4 1511
The US Dollar Index was down 0 10 at 97 51 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 43 | Investing com Israel stocks were higher after the close on Sunday as gains in the Oil Gas Banking and Real Estate sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 43
The best performers of the session on the TA 25 were Perrigo TA PRGO which rose 2 18 or 1580 points to trade at 74000 at the close Meanwhile Paz Oil TA PZOL added 1 82 or 1090 points to end at 61060 and Leumi TA LUMI was up 1 47 or 24 points to 1659 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 3 16 or 160 points to trade at 4900 at the close Teva TA TEVA declined 1 76 or 470 points to end at 26170 and Gazit Globe TA GZT was down 0 62 or 28 points to 4501
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 245 to 99 and 102 ended unchanged
Crude oil for September delivery was down 0 24 or 0 10 to 42 13 a barrel Elsewhere in commodities trading Brent oil for delivery in October fell 1 81 or 0 90 to hit 48 73 a barrel while the December Gold contract fell 0 13 or 1 40 to trade at 1114 20 a troy ounce
USD ILS was down 0 37 to 3 7782 while EUR ILS fell 1 07 to 4 1833
The US Dollar Index was up 0 25 at 96 61 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 98 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Insurance Biomed and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 98 to hit a new 3 months low
The best performers of the session on the TA 25 were Bezeq TA BEZQ which rose 2 07 or 14 6 points to trade at 719 7 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 1 72 or 38 points to end at 2248 and Avner L TA AVNRp was up 0 53 or 1 2 points to 228 1 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 3 57 or 155 points to trade at 4192 at the close Teva TA TEVA declined 3 35 or 860 points to end at 24840 and Nice TA NICE was down 3 05 or 750 points to 23820
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 202 to 136 and 112 ended unchanged
Crude oil for October delivery was down 7 88 or 3 88 to 45 33 a barrel Elsewhere in commodities trading Brent oil for delivery in October fell 8 70 or 4 71 to hit 49 44 a barrel while the December Gold contract rose 0 64 or 7 20 to trade at 1139 70 a troy ounce
USD ILS was up 0 08 to 3 9279 while EUR ILS rose 0 75 to 4 4361
The US Dollar Index was down 0 53 at 95 44 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 87 | Investing com Israel stocks were higher after the close on Thursday as gains in the Biomed Communication and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 87
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 3 30 or 142 points to trade at 4451 at the close Meanwhile Teva TA TEVA added 2 91 or 730 points to end at 25820 and ICL Israel Chemicals Ltd TA ICL was up 2 78 or 64 points to 2365 in late trade
The worst performers of the session were Nice TA NICE which fell 2 39 or 570 points to trade at 23300 at the close Delek Group TA DLEKG declined 1 50 or 1440 points to end at 94260 and Frutarom TA FRUT was down 1 29 or 190 points to 14500
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 184 to 147 and 119 ended unchanged
Crude oil for October delivery was up 4 39 or 2 03 to 48 28 a barrel Elsewhere in commodities trading Brent oil for delivery in October rose 3 63 or 1 83 to hit 52 34 a barrel while the December Gold contract fell 0 86 or 9 80 to trade at 1123 80 a troy ounce
USD ILS was up 0 30 to 3 9402 while EUR ILS fell 0 88 to 4 3726
The US Dollar Index was up 0 72 at 96 58 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 28 | Investing com Israel stocks were lower after the close on Thursday as losses in the Oil Gas Biomed and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 declined 0 28
The best performers of the session on the TA 25 were Ormat Technologies TA ORA which rose 2 00 or 270 points to trade at 13770 at the close Meanwhile Gazit Globe TA GZT added 1 90 or 78 points to end at 4185 and Paz Oil TA PZOL was up 1 30 or 770 points to 59790 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 67 or 660 points to trade at 24100 at the close Perrigo TA PRGO declined 2 27 or 1590 points to end at 68600 and Elbit Systems TA ESLT was down 1 60 or 490 points to 30200
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 197 to 132 and 120 ended unchanged
Crude oil for October delivery was up 1 49 or 0 66 to 44 81 a barrel Elsewhere in commodities trading Brent oil for delivery in October rose 0 77 or 0 36 to hit 47 95 a barrel while the December Gold contract rose 0 52 or 5 70 to trade at 1107 70 a troy ounce
USD ILS was up 0 09 to 3 8976 while EUR ILS rose 0 18 to 4 3722
The US Dollar Index was down 0 07 at 95 89 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 10 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Banking Financials and Biomed sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 10
The best performers of the session on the TA 25 were Teva TA TEVA which rose 4 40 or 1060 points to trade at 25160 at the close Meanwhile Discount TA DSCT added 1 51 or 11 4 points to end at 768 5 and Frutarom TA FRUT was up 1 50 or 230 points to 15530 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 4 12 or 169 points to trade at 3930 at the close Strauss Group TA STRS declined 2 62 or 144 points to end at 5356 and Gazit Globe TA GZT was down 1 98 or 83 points to 4102
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 181 to 147 and 122 ended unchanged
Crude oil for October delivery was up 3 92 or 1 75 to 46 34 a barrel Elsewhere in commodities trading Brent oil for delivery in November rose 3 65 or 1 75 to hit 49 49 a barrel while the December Gold contract rose 1 50 or 16 50 to trade at 1119 10 a troy ounce
USD ILS was down 0 61 to 3 8588 while EUR ILS fell 0 40 to 4 3579
The US Dollar Index was down 0 36 at 95 42 |
TEVA | Contraception opt out violates religious freedom U S appeals court | By Brendan Pierson Reuters A U S appeals court has ruled that President Barack Obama s healthcare law violates the rights of religiously affiliated employers by forcing them to help provide contraceptive coverage even though they do not have to pay for it Parting ways with all other appeals courts that have considered the issue the 8th U S Circuit Court of Appeals in St Louis on Thursday issued a pair of decisions upholding orders by two lower courts barring the government from enforcing the law s contraceptive provisions against a group of religiously affiliated employers The split in the circuit courts created makes it more likely that the U S Supreme Court will take up the issue in its coming term which begins in October and runs through June Several employers have already filed petitions with the court The Affordable Care Act commonly known as Obamacare requires employers to provide insurance for their employees including access to contraception sterilization and other preventative services for women The law allows religiously affiliated non profit employers to opt out of paying for contraceptive coverage directly Once they do insurers must provide the coverage separately at no extra cost to the employee Employers that do not follow the opt out process face a financial penalty Many employers have filed lawsuits against the government claiming that the opt out process makes them complicit in providing contraceptive coverage Before Thursday however every appeals court that considered the issue has rejected that argument Heartland Christian College and addiction services non profit CNS International Ministries Inc both based in Missouri and Dordt College and Cornerstone University both in Iowa filed the lawsuits before the 8th Circuit They object to emergency contraceptives including Plan B from Teva Pharmaceutical NYSE TEVA Industries Ltd TA TEVA which they believe are equivalent to abortion The employers say the opt out provision violates a 1993 federal law called the Religious Freedom Restoration Act Circuit Judge Roger Wollman who wrote Thursday s decisions on behalf of a three judge panel said the court must defer to the employers sincere religious belief that their participation in the accommodation process makes them morally and spiritually complicit in providing abortifacient coverage A representative of the U S Department of Justice which litigated the cases for the government was not immediately available for comment The cases are Dordt College et al v Burwell No 14 2726 and Sharpe Holdings Inc et al v U S Department of Human Services et al No 14 1507 both in the U S Court of Appeals for the 8th Circuit |
TEVA | Israel stocks lower at close of trade TA 25 down 2 23 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Biomed Technology and Insurance sectors led shares lower
At the close in Tel Aviv the TA 25 declined 2 23 to hit a new 6 months low
The best performers of the session on the TA 25 were Osem TA OSEM which rose 2 81 or 206 points to trade at 7550 at the close Meanwhile Elbit Systems TA ESLT added 2 62 or 750 points to end at 29400 and Isramco L TA ISRAp was up 2 51 or 1 7 points to 69 4 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 11 44 or 443 points to trade at 3430 at the close Perrigo TA PRGO declined 8 13 or 5380 points to end at 60820 and Teva TA TEVA was down 5 24 or 1250 points to 22600
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 236 to 73 and 135 ended unchanged
Crude oil for November delivery was up 2 23 or 0 99 to 45 42 a barrel Elsewhere in commodities trading Brent oil for delivery in November rose 2 25 or 1 06 to hit 48 41 a barrel while the December Gold contract fell 0 06 or 0 70 to trade at 1131 00 a troy ounce
USD ILS was down 0 11 to 3 9274 while EUR ILS fell 0 36 to 4 4049
The US Dollar Index was up 0 12 at 96 25 |
XOM | Oil rebounds in Asia lifted by data points | Investing com Oil futures rebounded modestly during Wednesday s Asian as traders digested some solid U S economic data points that went mostly ignored in the oil pits Tuesday On the New York Mercantile Exchange light sweet crude futures for April delivery rose 0 26 to USD92 88 per barrel in Asian trading Wednesday Oil settled down 0 58 at USD92 57 a barrel on Tuesday in the U S A day after a report showed Chinese oil imports rose in January two data points showed U S demand could be improving as well In U S the Conference Board said its consumer confidence index rose to 69 6 in February from a downwardly revised 58 4 in January Economists expected a February reading of 61 The Commerce Department said new home sales rose 15 6 last month to a 4 1 2 year high In another report The S P Case Shiller composite index of 20 metropolitan areas showed home prices increased by 6 8 in December The U S is the world s largest oil consumer giving price action in the commodity an intimate correlation to data points there With the consumer representing almost 70 of U S GDP and housing playing an integral role in job creation there Tuesday s data points could be seen as pivotal to crude s near term upside The Department of Energy will release data on the country s crude inventories on Wednesday Elsewhere Exxon Mobil and France s Total are reportedly among the companies interested in exploring for oil and natural gas in Sri Lanka That country is about to hold its largest auctions of oil blocks in years Italy s Eni and BP are also believed to be interested in bidding Exxon is the largest U S oil company Sri Lanka currently does not produce any oil or natural gas Meanwhile Brent for April delivery rose 0 13 to USD112 92 per barrel on the ICE Futures Exchange |
XOM | Creating Portfolio Income Trading Naked Puts In Exxon Mobil | As a new options trader it is easy to get confused When approaching a trade the stock trader has a simple binary decision get long by buying stock or get short by selling stock The options trader faces a host of potential trade constructions including verticals calendars ratio spreads and perhaps most confusing of all a wide array of complex spreads in which butterflies condors and iron condors can be created at will Even more confusingly these complex spreads are easily mutated from one to another by simply adding or subtracting portions of their trade structure Taken together with learning the concepts peculiar to the world of options most notably the potentially confusing topic of implied volatility and its nuances the aspiring trader can be easily discouraged In today s missive I want to look at an extremely simple longer term trading plan which can produce substantial returns and is easily managed on a day to day basis For this plan I would like to use the example of one of my all time favorite trading stocks Exxon Mobil XOM This underlying has tremendous option liquidity as indicated by having traded on average 8 6 million worth of options daily over the last few weeks In addition Exxon s options trade with bid ask spreads of only a few pennies and there is huge open interest in a wide variety of strikes Taken together these characteristics indicate that while price behavior may not always allow a profitable trade a liquidity trap is not a risk factor In addition to these options characteristics the stock pays a bit over 2 annually by virtue of its dividend Finally there is little chance that its fundamental business as the world s largest producer of energy is going the way of the buggy whip manufacturers anytime in the near future These facts provide reassurance to the investor that during times of this ongoing trade in which he is long stock he is exposed to neither the risk of a collapsing business model nor is capital encumbered without receiving regular income via the dividend yield The trading plan can be adjusted to accommodate accounts with a wide range of capital but in its simplest form consists of simply selling naked puts at the first out of the money strike which have 25 to 35 days remaining to expiration The potential outcomes are two price remains above the strike price and we can close the position for a small debit or price is below the strike and we take assignment of the stock If the price remains above the strike my strategy entails closing the naked puts when the trader has extracted 80 of the initial credit received when the puts were sold Once the position is closed we simply do it again and again month after month The other potential outcome is that price drops below our strike price and we are required to buy stock at the strike price as the result of assignment At this point the most basic aspect of the trading plan dictates that we begin selling covered calls against our long stock thus establishing a covered call position Since the stock would have decreased in price implied volatility would have presumably increased resulting in richer premiums for the calls we would be selling As long as we are in the position of owning stock we are entitled to the dividends The basic plan allows the stock to be called away if the calls go in the money At this point we return to the initial strategy of selling out of the money puts with 25 to 35 days of life remaining Let us look at the current status in order to consider a potential trade Below is displayed a current options montage The first out of the money put in the October series currently 31 days from expiration is the 90 strike We could enter this trade for 82 with a potential 5 return on capital based on margin calculated for a Reg T account This trade has a 76 chance of profitability and a 70 chance of reaching maximum profitability The nuances that could be applied to this trade are numerous and would be reflective of the trader s price hypothesis for XOM For example consider the daily chart of XOM displayed below The current price may seem somewhat extended being well above the current 50 day and 200 day moving averages The technical driven trader may wish to sell the more conservative 87 5 strike hypothesizing support at the recent area of consolidation Is this the elusive free money trade It is not but over a long series of trades the overwhelming probability is a significant positive return Negative features to this trade include requirement of substantial capital to secure the ability to buy the stock should assignment occur This could be addressed by using put credit spreads instead of naked short puts if capital is an issue This is but one example of using a carefully crafted option based trade to deliver a high probability of success I invite you to subscribe to a trial membership of my service at OptionsTradingSignals com to learn more about probability based option trading This material should not be considered investment advice J W Jones is not a registered investment advisor Under no circumstances should any content from this article or the OptionsTradingSignals com website be used or interpreted as a recommendation to buy or sell any type of security or commodity contract This material is not a solicitation for a trading approach to financial markets Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor This information is for educational purposes only |
XOM | Exxon Mobil Classic Breakout | Nice technical multi month cup and handle formation here for Exxon Mobil XOM Clean pattern with classic poke through breakout and retest before pushing higher As long as 86 holds hypothetical stop area this chart is looking good for more upside As indicated in the disclaimer below I do not have a current position in XOM but note that I may purchase a starter position in the next 24 48 hours Trade safe by having a plan using scale and incorporating stops Discipline first Have a great day Exxon Mobil XOM stock chart as of intraday September 24 2012 XOM technical breakout chart with support and resistance levels Disclosure No position in any of the securities mentioned at the time of publication Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of his employer or any other person or entity |
TEVA | Teva Xenon Nerve Pain Candidate Fails In Phase II Study | Teva Pharmaceutical Industries Ltd NYSE TEVA and partner Xenon Pharmaceuticals Inc NASDAQ XENE announced that a mid stage study evaluating their pipeline candidate topical TV 45070 for post herpetic neuralgia PNH did not meet the primary endpoint Shares of Xenon were down 21 on Tuesday while that of Teva declined 2 4 In fact Teva s shares have lost 11 3 so far this year against the Zacks classified industry s increase of 1 Top line results from the phase II study showed that TV 45070 did not demonstrate a statistically significant change in pain from baseline to week four as assessed by the numeric rating scale NRS thereby failing to meet the primary endpoint Secondary endpoints of the study were also not met However there were no safety concerns in the study The companies are evaluating the next steps for TV 45070 and are further analyzing the data Teva licensed TV 45070 from Xenon Pharmaceuticals Inc in Dec 2012 Teva has many other pain candidates in its pipeline These include fasinumab for osteoarthritis pain phase III and fremanezumab TEV 48125 for chronic episodic migraine Earlier this month Teva announced that fremanezumab met the primary and secondary endpoints in two late stage HALO studies one each for prevention of episodic and chronic migraine Teva intends to seek FDA approval for fremanezumab later this year based on the HALO studies for both episodic and chronic migraine and expects approval in the second half of next year Teva carries a Zacks Rank 3 Hold while Xenon Pharmaceuticals has a Zacks Rank 4 Sell Better ranked stocks in the sector include Regeneron Pharmaceuticals Inc NASDAQ REGN and VIVUS Inc NASDAQ VVUS both sporting a Zacks Rank 1 Strong Buy You can see Regeneron s earnings estimates have risen 3 4 for 2017 over the last 60 days Shares of the company have risen 36 8 so far this year VIVUS loss per share estimates narrowed 22 for 2017 in the last 60 days The company delivered positive earnings surprises in all four trailing quarters with an average beat of 233 69 Shares of Vivus have risen 4 4 this year so far Today s Stocks from Zacks Hottest StrategiesIt s hard to believe even for us at Zacks But while the market gained 18 8 from 2016 Q1 2017 our top stock picking screens have returned 157 0 128 0 97 8 94 7 and 90 2 respectively And this outperformance has not just been a recent phenomenon Over the years it has been remarkably consistent From 2000 Q1 2017 the composite yearly average gain for these strategies has beaten the market more than 11X over Maybe even more remarkable is the fact that we re willing to share their latest stocks with you without cost or obligation |
TEVA | Bio Tech Vs Pharma | Investing in bio tech and pharma They re as different as chalk and cheese
With the recent announcement of Teva s NYSE TEVA successful phase III trials for a new game changing migraine medication and new announcements every day from other biotech companies it is worthwhile to sit back and have a strong look under the cover of the pharma and biotech industry
Biotechnology has been a hot topic in recent years and the big data possibilities has only intensified it With improvements in health and healthcare a constant driver in any market conditions it is alway likely to be a sector that has many businesses But at the current time we are at a particularly exciting juncture where technology has provided a clear path toward optimisation of health that was only a dream a few short years ago
Not only through wearable wifi and data but also by copying how data is used by technology companies
The best technology companies offer a product designed to provide a maximal user experience as well as collect as much data as they can Much of this data goes to product development which is what you would expect data to do But a large proportion of the collection also goes toward marketing activities Sometimes it can be sold to other interested parties Often though it creates a synergy with your current activities and is used to drive further activities and developments
At a recent biomed conference this writer was talking to a provider of dispensing and charting software to the hospital and pharmacy industry As a former pharmacist I enjoyed discussing the advantages of the product and its unique benefits As the discussion grew more detailed it was clear that rather than developing products further to include more functionality the business was more interested in its side project of selling user data to pharma companies to allow them to gauge the sales of their drugs
This highlights not only the value of data for developing a product but also the very real way that biotech companies are following the lead of technology companies in terms of using their collected data
For pharma companies the same challenges apply that they have always faced Although technology helps with clinical trial data collection and is continuing to improve the ease of a clinical trial on the test subject it has not provided much in the way of advancing the streamlining of drug development Drugs pass through a very time consuming and expensive set of testing simply to get to the first stage of the regulatory process After that the time and costs get even more significant with any of a million factors capable of derailing an otherwise promising product Issues such as manufacturing formulation development stability toxicity tolerability efficacy mutagenicity I added this to sound smart it basically means the ability to give you cancer and side effects all need to be navigated before a drug can get to the market
As a result the market is dominated by big players who can reinvest huge profits into development in the hope to create a replacement product that is providing them with their current income Normally a patent expires within 7 13 years by which time the market is swamped by a bunch of me too generic products Whilst efficacy data from phase II trials is always promising there is still a large proportion of drugs that fall over during phase III Others succeed in making the long treck to market and then once there don t do all that well
Pharma has increased its throughput with new registrations receiving approval in the last few years as they get smarter about their development process But the nature of the beast is that it is a lot of work to get a drug to market and once it arrives there is no guarantee of success
So whilst biotech is reaching new heights and new paradigms things remain very much the same in pharma |
TEVA | AstraZeneca AZN CEO Rumor Reportedly Ends Shares Rise | AstraZeneca plc s NYSE AZN shares rose almost 5 on Friday after the company reportedly confirmed that its chief executive officer CEO Pascal Soriot is not quitting the company to join the generic drug maker Teva Pharmaceutical Industries Limited NYSE TEVA
AstraZeneca s shares have impressively outperformed the Zacks classified industry so far this year The stock has jumped 24 compared with the broader industry s increase of 11 8
We remind investors that last week on Thursday AstraZeneca s shares lost more than 4 after it was reported by an Israeli business newspaper Calcalist that Pascal Soriot will be filling in the shoes of Teva s former CEO Erez Vigodman who stepped down in February
However AstraZeneca reportedly confirmed on Friday that Soriot will present the company s earnings on July 27 which indicates the CEO is still with AstraZeneca Teva s shares dropped almost 4 on Friday
Notably Pascal Soriot has been serving AstraZeneca as a CEO since Oct 2012 Earlier he served as the chief operating officer COO at Roche Pharmaceuticals OTC RHHBY from 2010 to Sep 2012 Before that he also served as the CEO of Genentech where he led its successful merger with Roche
Teva has been searching for a permanent CEO which remains the company s highest priority Chairman Sol Barer at the first quarter conference call said that the company is looking for a top notch CEO with deep and broad pharmaceutical experience
Michael McClellan CFO of the Global Specialty Medicines division started serving as the Interim CFO since Jul 1 2017 Astrazeneca LON AZN PLC Price
Zacks Rank Key Picks
AstraZeneca currently carries a Zacks Rank 4 Sell A better ranked stock in the healthcare sector is Sanofi NYSE SNY sporting a Zacks Rank 2 Buy You can see
Sanofi s earnings per share estimates nudged up from 3 08 to 3 18 for 2017 and from 3 26 to 3 30 over the last 60 days The company delivered positive earnings surprises in two of the four trailing quarters with an average beat of 5 10 Sanofi s shares have rallied 19 1 so far this year
Today s Stocks from Zacks Hottest Strategies
It s hard to believe even for us at Zacks But while the market gained 18 8 from 2016 Q1 2017 our top stock picking screens have returned 157 0 128 0 97 8 94 7 and 90 2 respectively
And this outperformance has not just been a recent phenomenon Over the years it has been remarkably consistent From 2000 Q1 2017 the composite yearly average gain for these strategies has beaten the market more than 11X over Maybe even more remarkable is the fact that we re willing to share their latest stocks with you without cost or obligation |
TEVA | Nektar s NKTR 181 Positive In Human Abuse Potential Study | Nektar Therapeutics NASDAQ NKTR shares increased more than 4 on Tuesday after the company announced positive top line results from an oral human abuse potential HAP study evaluating its opioid analgesic candidate NKTR 181 to assess the abuse potential compared with oxycodone NKTR 181 is a new chemical entity NCE designed to treat pain without inducing euphoria associated with opioids that can lead to abuse and addiction Notably the FDA had granted a Fast Track designation to the NKTR 181 development program back in May 2012 So far the drug has not been approved by the FDA or any other regulatory agencies Nektar s shares have significantly outperformed the Zacks classified industry so far this year The stock has soared 76 1 compared with the broader industry s advance of 6 9 The HAP study was designed to compare therapeutic 400 mg and supratherapeutic dosings higher than its analgesic dose range of 100 mg 400 mg of NKTR 181 versus a Schedule II opioid oxycodone dose The trial was conducted on 54 healthy non dependent recreational drug users and has met both its primary and secondary endpoints It demonstrated lower rating of peak liking and lower area under effect AUE for drug liking compared with oxycodone across every doses In other words NKTR 181 shows a significantly less abuse potential compared with oxycodone Per the company s press release opioid abuse is widespread in the U S with one in five having been an addicted patient to prescription painkillers It is estimated that approximately two million Americans are either abused or dependent on prescription opioid pain relievers in 2014 Hence the drug s approval will provide the company with a huge commercial opportunity in the U S We remind investors that in Mar 2017 Nektar announced positive results from SUMMIT 07 phase III efficacy study evaluating NKTR 181 in patients with moderate to severe chronic low back pain The study met the primary endpoint and demonstrated a significantly improved chronic back pain relief on treatment with NKTR 181 compared with placebo Key secondary endpoints were also of high statistical significance However Nektar is expected to face intense competition in the pain market with several companies developing pain therapies Competitors include Collegium Pharmaceutical Inc s NASDAQ COLL Xtampza and Teva Pharmaceutical s NYSE TEVA naproxen to name a few Meanwhile Endo International plc NASDAQ ENDP recently announced that it will withdraw opioid pain medication Opana ER oxymorphone hydrochloride extended release from the market following FDA s request in June Hence withdrawing the drug from the market will provide a potential opportunity for NKTR 181 in the coming times Nektar Therapeutics Price
Zacks Rank
Nektar currently carries a Zacks Rank 3 Hold You can see
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 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 24 | Investing com Israel stocks were lower after the close on Monday as losses in the Biomed Technology and Communication sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 24
The best performers of the session on the TA 25 were Teva TA TEVA which rose 8 86 or 2120 points to trade at 26040 at the close Meanwhile Avner L TA AVNRp added 1 40 or 4 1 points to end at 296 0 and Delek Drilling LP TA DEDRp was up 1 29 or 20 points to 1570 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 6 44 or 430 points to trade at 6250 at the close Nice TA NICE declined 3 53 or 860 points to end at 23500 and Strauss Group TA STRS was down 2 79 or 170 points to 5930
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 185 to 149 and 114 ended unchanged
Crude oil for September delivery was down 1 43 or 0 69 to 47 45 a barrel Elsewhere in commodities trading Brent oil for delivery in September fell 2 08 or 1 14 to hit 53 48 a barrel while the December Gold contract rose 0 81 or 8 80 to trade at 1094 80 a troy ounce
USD ILS was down 1 22 to 3 7730 while EUR ILS fell 0 16 to 4 1888
The US Dollar Index was down 0 83 at 96 54 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 73 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Communication Banking and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 73
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 84 or 740 points to trade at 26780 at the close Meanwhile Nice TA NICE added 2 43 or 570 points to end at 24070 and Poalim TA POLI was up 2 11 or 44 points to 2129 in late trade
The worst performers of the session were Perrigo TA PRGO which fell 2 48 or 1810 points to trade at 71250 at the close Delek Group TA DLEKG declined 2 10 or 2400 points to end at 112100 and Delek Drilling LP TA DEDRp was down 1 97 or 31 points to 1539
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 181 to 151 and 116 ended unchanged
Shares in Teva TA TEVA rose to all time highs up 2 84 or 740 to 26780
Crude oil for September delivery was up 1 56 or 0 74 to 48 13 a barrel Elsewhere in commodities trading Brent oil for delivery in September rose 0 36 or 0 20 to hit 53 66 a barrel while the December Gold contract fell 0 15 or 1 60 to trade at 1095 30 a troy ounce
USD ILS was up 0 18 to 3 7786 while EUR ILS fell 0 10 to 4 1772
The US Dollar Index was up 0 15 at 96 78 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 30 | Investing com Israel stocks were lower after the close on Thursday as losses in the Biomed Communication and Banking sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 30
The best performers of the session on the TA 25 were Azrieli Group TA AZRG which rose 3 37 or 510 points to trade at 15640 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 2 76 or 70 points to end at 2608 and Israel Corp TA ILCO was up 2 70 or 3500 points to 133000 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 40 or 650 points to trade at 26460 at the close Poalim TA POLI declined 2 06 or 44 points to end at 2095 and Nice TA NICE was down 2 04 or 490 points to 23490
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 172 to 164 and 112 ended unchanged
Crude oil for September delivery was up 0 55 or 0 27 to 49 06 a barrel Elsewhere in commodities trading Brent oil for delivery in September rose 0 81 or 0 43 to hit 53 81 a barrel while the December Gold contract fell 0 03 or 0 30 to trade at 1093 00 a troy ounce
USD ILS was up 0 13 to 3 7877 while EUR ILS fell 0 43 to 4 1373
The US Dollar Index was up 0 47 at 97 68 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 12 | Investing com Israel stocks were higher after the close on Sunday as gains in the Communication Real Estate and Oil Gas sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 12
The best performers of the session on the TA 25 were Nice TA NICE which rose 3 70 or 870 points to trade at 24360 at the close Meanwhile Gazit Globe TA GZT added 2 32 or 103 points to end at 4547 and Bezeq TA BEZQ was up 1 68 or 11 7 points to 707 4 in late trade
The worst performers of the session were Teva TA TEVA which fell 1 51 or 400 points to trade at 26060 at the close ICL Israel Chemicals Ltd TA ICL declined 1 50 or 39 points to end at 2569 and Frutarom TA FRUT was down 1 19 or 190 points to 15710
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 212 to 119 and 117 ended unchanged
Crude oil for September delivery was down 3 54 or 1 72 to 46 80 a barrel Elsewhere in commodities trading Brent oil for delivery in September fell 2 81 or 1 50 to hit 51 81 a barrel while the December Gold contract rose 0 57 or 6 20 to trade at 1094 90 a troy ounce
USD ILS was down 0 20 to 3 7750 while EUR ILS rose 0 24 to 4 1450
The US Dollar Index was down 0 30 at 97 32 |
TEVA | Major Reversal In Teva Pharmaceutical Industries Signals Hard Bottom | Shares of Teva Pharmaceutical Industries Ltd NYSE TEVA sold hard in early trading hitting its lowest levels since 2005 It look like another sad day for investors in the pharma stock but then something amazing happened The stock turned around surging to the upside and turning positive on the day A reversal like this gets the attention of every technical investor and hedge fund trader In addition the stock has already traded big volume over 10 million by 1 30pm ET Anytime a stock is making new 52 week lows or in this case decade lows and reverses in such powerful fashion smart investors jump on board for a possible bottom play
The upside on Teva Pharmaceutical Industries is big with a near term target of 37 50 Investors should be taking note of this reversal on volume This may be a multi year low being made with huge upside |
TEVA | Teva s Migraine Candidate TEV 48125 Positive In Phase III | Teva Pharmaceutical Industries Limited NYSE TEVA announced positive top line results from a phase III study HALO evaluating its pipeline candidate fremanezumab TEV 48125 for prevention of chronic migraine CM The study met both its primary and secondary end points The company will report another top line data from HALO study in episodic migraine EM in the coming weeks Notbly fremanezumab became a part of Teva s pipeline following the Jul 2014 acquisition of Labrys Biologics Shares of Teva have underperformed the Zacks classified industry so far this year The stock has lost 23 2 compared to broader industry s fall of 8 4 The multicenter randomized double blind double dummy placebo controlled parallel group multi dose phase III study n 1130 evaluated the efficacy and safety of four doses of fremanezumab as compared to placebo in adults with episodic and chronic migraine Patients randomized to one of three treatment arms were subcutaneously given fremanezumab once a month for two months quarterly dose regimen either in high 675mg or low doses 225 mg monthly dose regimen The study met all primary endpoints in both monthly and quarterly dosing regimens and demonstrated statistically significant reduction in the number of monthly headache days compared to a placebo The study also met its secondary endpoints and showed significant improvement over placebo Strikingly fremanezumab is also in phase III clinical study to evaluate its safety and efficacy in treating chronic and episodic cluster headaches The study was initiated in Feb 2016 According to the press release issued by the company approximately 38 million people suffer from migraine in the U S Among them prevention is appropriate for 40 of the patients but only 13 are currently receiving therapy Hence there remains a significant unmet medical need for treatments designed specifically to heal migraines Teva Pharmaceutical Industries Limited Price
Zacks Rank Key Picks
Teva currently carries a Zacks Rank 3 Hold Better ranked stocks in healthcare sector include VIVUS Inc NASDAQ VVUS Bayer DE BAYGN AG OTC BAYRY and Regeneron Pharmaceuticals Inc NASDAQ REGN While VIVUS flaunts a Zacks Rank 1 Strong Buy Bayer and Regeneron carry a Zacks Rank 2 Buy You can see
VIVUS s loss per share estimates lessened from 50 cents to 39 cents for 2017 in the last 30 days The company posted positive earnings surprises in all four trailing quarters with average beat of 233 69
Regeneron s earnings per share estimates increased from 10 17 to 10 52 for 2017 and from 10 90 to 12 10 over the last 30 days The company posted positive earnings surprises in two of four trailing quarters with average beat of 0 45
Bayer s earnings per share estimates increased from 8 36 to 8 85 for 2017 and from 8 88 to 9 53 for 2018 over last 30 days The company posted positive earnings surprises in three of four trailing quarters with an average beat of 10 25
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It s not the one you think |
TEVA | Regeneron Announces Positive Data On Carcinoma Candidate | Regeneron Pharmaceuticals Inc NASDAQ REGN and partner Sanofi NYSE SNY announced positive results related to its experimental candidate REGN2810 a checkpoint inhibitor targeting PD 1 programmed death 1 in patients with advanced cutaneous squamous cell carcinoma CSCC The data was presented at the 2017 American Society of Clinical Oncology Annual meeting The data from two cohorts of a phase I study demonstrated that treatment with REGN2810 achieved overall response rate ORR of 46 2 and a disease control rate DCR of 69 2 However the median progression free survival and overall survival is yet to be reached The phase I study evaluated REGN2810 with an initial dose escalation portion followed by multiple expansion cohorts to investigate safety and antitumor activity in specific patient populations The data presented were from two cohorts evaluating the candidate in patients with distantly metastatic CSCC and with inoperable unresectable locally or regionally advanced CSCC A 3mg kg dose was administered through intravenous infusion over 30 minutes every two weeks for up to 48 weeks So far this year Regeneron s share price has risen 30 8 significantly better than a 2 7 increase for the Zacks classified industry Another expansion cohort of the phase I study showed no apparent association between the objective response and level of PD L1 in patients Other correlative studies are ongoing The candidate is being developed as monotherapy for CSCC basal cell carcinoma BCC and non small cell lung cancer NSCLC A combination therapy of REGN2810 and REGN3767 is also being developed as an immunotherapy targeting the checkpoint inhibitor LAG 3 Another phase II study EMPOWER CSCC 1 is evaluating REGN2810 in advanced CSCC and is currently in the enrolment phase We remind investors that the FDA has approved Dupixent and Kevzara earlier this year for atopic dermatitis and rheumatoid arthritis respectively The company is focused on developing its investigational therapies and has collaborations with Intellia Therapeutics Inc NASDAQ NTLA for accessing Intellia s CRISPR Cas gene editing technology platform and with Teva Pharmaceutical Industries Limited NYSE TEVA for the development and commercialization of nerve growth factor NGF antibody candidate fasinumab globally Currently Regeneron Pharma sports a Zacks Rank 1 Strong Buy You can see 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 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 84 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Oil Gas Communication and Insurance sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 84
The best performers of the session on the TA 25 were Melisron TA MLSR which rose 2 95 or 390 points to trade at 13630 at the close Meanwhile OPKO Health Inc TA OPK added 2 41 or 140 points to end at 5958 and Isramco L TA ISRAp was up 2 37 or 1 9 points to 82 1 in late trade
The worst performers of the session were Teva TA TEVA which fell 1 15 or 270 points to trade at 23180 at the close ICL Israel Chemicals Ltd TA ICL declined 0 74 or 20 points to end at 2700 and Gazit Globe TA GZT was down 0 67 or 31 points to 4619
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 209 to 124 and 121 ended unchanged
Crude oil for August delivery was up 0 50 or 0 30 to 60 30 a barrel Elsewhere in commodities trading Brent oil for delivery in August fell 0 13 or 0 09 to hit 63 87 a barrel while the August Gold contract fell 0 70 or 8 30 to trade at 1177 50 a troy ounce
USD ILS was up 0 10 to 3 8389 while EUR ILS fell 0 35 to 4 3119
The US Dollar Index was up 0 28 at 95 33 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 58 | Investing com Israel stocks were lower after the close on Thursday as losses in the Biomed Oil Gas and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 58
The best performers of the session on the TA 25 were Teva TA TEVA which rose 1 22 or 280 points to trade at 23210 at the close Meanwhile Elbit Systems TA ESLT added 1 01 or 300 points to end at 30000 and Poalim TA POLI was up 0 73 or 15 points to 2060 in late trade
The worst performers of the session were Azrieli Group TA AZRG which fell 3 17 or 500 points to trade at 15250 at the close Delek Drilling LP TA DEDRp declined 2 75 or 46 points to end at 1627 and Frutarom TA FRUT was down 2 68 or 430 points to 15620
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 202 to 138 and 113 ended unchanged
Crude oil for August delivery was up 1 56 or 0 89 to 57 85 a barrel Elsewhere in commodities trading Brent oil for delivery in August rose 1 69 or 1 04 to hit 63 05 a barrel while the August Gold contract fell 0 57 or 6 70 to trade at 1162 60 a troy ounce
USD ILS was down 0 43 to 3 7685 while EUR ILS rose 0 06 to 4 1849
The US Dollar Index was down 0 34 at 96 14 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 19 | Investing com Israel stocks were higher after the close on Sunday as gains in the Oil Gas Insurance and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 19
The best performers of the session on the TA 25 were Delek Drilling LP TA DEDRp which rose 2 74 or 43 points to trade at 1613 at the close Meanwhile Avner L TA AVNRp added 2 39 or 7 0 points to end at 299 8 and Isramco L TA ISRAp was up 2 34 or 1 8 points to 78 7 in late trade
The worst performers of the session were Strauss Group TA STRS which fell 0 84 or 51 points to trade at 5988 at the close Perrigo TA PRGO declined 0 80 or 550 points to end at 68350 and Teva TA TEVA was down 0 64 or 150 points to 23280
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 198 to 126 and 128 ended unchanged
Crude oil for August delivery was up 0 06 or 0 03 to 52 81 a barrel Elsewhere in commodities trading Brent oil for delivery in August unchanged 0 00 or 0 00 to hit 59 00 a barrel while the August Gold contract rose 0 29 or 3 40 to trade at 1162 60 a troy ounce
USD ILS was down 0 50 to 3 7673 while EUR ILS rose 0 59 to 4 2037
The US Dollar Index was down 0 73 at 95 96 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 03 | Investing com Israel stocks were higher after the close on Tuesday as gains in the Communication Insurance and Technology sectors led shares higher
At the close in Tel Aviv the TA 25 gained 0 03
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 68 or 630 points to trade at 24150 at the close Meanwhile Perrigo TA PRGO added 1 46 or 1010 points to end at 70010 and Bezeq TA BEZQ was up 0 94 or 6 2 points to 662 5 in late trade
The worst performers of the session were Nice TA NICE which fell 1 72 or 420 points to trade at 24020 at the close Delek Drilling LP TA DEDRp declined 1 64 or 27 points to end at 1615 and Frutarom TA FRUT was down 1 22 or 190 points to 15410
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 170 to 162 and 118 ended unchanged
Crude oil for August delivery was up 0 08 or 0 04 to 52 24 a barrel Elsewhere in commodities trading Brent oil for delivery in September fell 0 64 or 0 38 to hit 57 77 a barrel while the August Gold contract fell 0 04 or 0 50 to trade at 1154 90 a troy ounce
USD ILS was down 0 17 to 3 7704 while EUR ILS fell 0 19 to 4 1466
The US Dollar Index was down 0 04 at 96 90 |
XOM | Best And Worst ETFs And Mutual Funds All Cap Growth | The all cap growth style ranks fifth out of the twelve fund styles as detailed in my style roadmap It earns my Neutral rating which is based on aggregation of ratings of 2 ETFs and 436 mutual funds in the all cap growth style as of July 18 2012 Figure 1 ranks from best to worst the two all cap growth ETFs and Figure 2 shows the five best and worst rated all cap growth mutual funds Not all all cap growth style ETFs and mutual funds are created the same The number of holdings varies widely from 19 to 2042 which creates drastically different investment implications and ratings The best ETFs and mutual funds allocate more value to Attractive or better rated stocks than the worst which allocate too much value to Neutral or worse rated stocks To identify the best and avoid the worst ETFs and mutual funds within the all cap growth style investors need a predictive rating based on 1 stocks ratings of the holdings and 2 the all in expenses of each ETF and mutual fund Investors need not rely on backward looking ratings Investors seeking exposure to the all cap growth style should buy one of the Attractive or better rated mutual funds from Figures 2 Figure 1 ETFs with the Best Worst Ratings Top 5 where available Best ETFs exclude ETFs with less NAV s less than 100 million Sources New Constructs LLC and company filingsFigure 2 Mutual Funds with the Best Worst Ratings Top 5 Best mutual funds exclude funds with NAV s less than 100 million Sources New Constructs LLC and company filingsFive mutual funds are excluded from Figure 2 because their total net assets TNA are below 100 million and do not meet our liquidity standards iShares Russell 3000 Growth Index Fund IWZ earns my Neutral rating and is my top rated all cap growth ETF Fidelity Commonwealth Trust II Fidelity lgCap Gro Enhanced Idx Fd FLGEX earns my Attractive rating and is my top rated all cap growth mutual fund First Trust Multi Cap Growth AlphaDEX Fund FAD earns my Neutral rating and is my worst rated all cap growth ETF John Hancock Funds II Technical Opportunities Fund JTCAX earns my Very Dangerous rating and is my worst rated all cap growth mutual fund Figure 3 shows that 519 out of the 2192 stocks over 48 of the total net assets held by all cap growth ETFs and mutual funds get an Attractive or better rating However no all cap growth ETFs and only 20 out of 436 all cap growth mutual funds less than 1 of total net assets get an Attractive or better rating The takeaways are mutual fund managers pick the wrong stocks and ETFs offer exposure to poor quality stocks Figure 3 All cap Growth Style Landscape For ETFs Mutual Funds StocksSources New Constructs LLC and company filings As detailed in the fund industry offers many cheap funds but very few funds with high quality stocks or with what I call good portfolio management Investors need to tread carefully when considering all cap growth ETFs and mutual funds No ETFs and 20 mutual funds in the all cap growth style allocate enough value to Attractive or better rated stocks to earn an Attractive rating Exxon Mobil Corp XOM is one of my favorite stocks held by all cap growth ETFs and mutual funds and earns my Very Attractive rating Exxon is a well established consistently profitable business with positive economic earnings in the last nine years a feat matched by less than 10 of Russell 3000 companies Exxon s current stock price 85 73 implies that the company s after tax profits NOPAT will permanently decline by 40 Consistently high historical profits and low expectations for future profitability make an attractive risk reward tradeoff for investors Amylin Pharmaceuticals Inc AMLN is one of my least favorite stocks held by all cap growth ETFs and mutual funds and earns my Dangerous rating AMLN is a value destroyer The company has generated a negative NOPAT and economic earnings in each of the 14 years of my model and negative free cash flow FCF in all years but one The company s disappointing return on invested capital ROIC of 4 places it in the bottom 12th percentile of all Russell 3000 companies AMLN is a Biotech and could develop the next cure of diabetes which would cause the stock price to skyrocket but the company s past performance coupled with high expectations for future profits make the stock too much of a gamble Figures 4 and 5 show the rating landscape of all all cap growth ETFs and mutual funds Figure 4 Separating the Best ETFs From the Worst Funds Sources New Constructs LLC and company filingsFigure 5 Separating the Best Mutual Funds From the Worst FundsSources New Constructs LLC and company filings Disclosure I own XOM I receive no compensation to write about any specific stock sector style or theme |
XOM | Slow And Steady Wins The Race Buy XOM | Sometimes picking stocks is easy if you focus on the basic principles of cash flows valuation and competitive advantage Buying Exxon Mobil XOM now is one of the easiest calls in the market these days With superior cash flows a cheap valuation and one of the strongest competitive positions in the business world it is hard to make a straight faced argument against owning this stock anywhere below 100 My model shows the stock is worth 140 if one assumes profits never grow from 2011 levels i e the no growth value of the stock I will never forget how my first boss at Arthur Andersen in Houston back when I was a newly minted accountant in 1995 told a group of us at lunch to ignore all the hype in the stock market His name was Charlie and he was the first person to ever give me stock market advice His message was simple 1 put your money in the best companies in businesses that will be around forever and 2 then check back in 15 to 20 years As an example of how he implemented this strategy Charlie told us to buy XOM which since 1995 has Charlie was right back in 1995 and he is right today My regular readers know that my investment strategy does not rely on past performance so my recommendation to buy XOM is not based on XOM s past price performance It is based on the basic principles of investing or what I call which in many ways is the analytical process of identifying companies that fit Charlie s definition of a good stock Figure 1 World Leading Cash Flows Come From High ROIC Sources New Constructs LLC and company filings Figure 1 shows that XOM s ROIC has been well above its cost of capital WACC for most of the last 14 years XOM is one of the most profitable companies in the world Cash flows are not an issue because over time XOM s management has allocated capital to projects and investments that produce above average returns That is the definition of good management Intelligent capital allocation has been a hallmark of XOM management for as long as I can remember That greatly reduces the risk of putting money in this stock Risk in this stock is further lowered by the market s valuation of XOM At 87 the current valuation implies the company s cash flows will permanently decline by nearly 40 In other words the market is not only giving XOM no credit for future cash flow growth it is valuing it as if its profits will drop 40 next year and never grow again Note that the market s valuation is considerably more pessimistic than analysts expectations for revenue and earnings The lowest estimates for revenue forecast about a 20 drop The lowest estimates for EPS forecast a 25 drop Figure 2 shows how XOM s stock compares to its economic book value EBV since 1998 when my model starts Never has the price to EBV ratio been as low for XOM as it is now The current economic book value aka no growth value for XOM is 140 Such a low valuation presents investors with great upside potential As mentioned above the no growth value of the stock is 140 Figure 2 Stock Price Is Only About 60 of Economic Book Value Sources New Constructs LLC and company filings Bears on XOM will say that the company is too dependent on oil prices and the economy They are correct that the stock has moved in sympathy with oil prices which in turn have moved in sympathy with expectations for global growth Long term however global growth will resume and XOM will maintain its position as the largest energy company in the world Bears may also point to declining crude oil reserves and the attendant lower margins My response is that XOM has been consistently and deliberately diversifying its energy production sources to ensure its reserves across all types of energy remain strong In fact the company s proven reserves replacement ratio has been above 100 for 18 consecutive years International risks are mitigated by the company investing less in E P of foreign reserves and more in building plants and processing for their foreign clients The focus is shifting away from production to providing capital and expertise for getting the most out of client reserves Few will attempt to argue that the demand for energy is going anywhere but up over the foreseeable future XOM is well positioned to continue to profit from being one of the most efficient producers of energy Disclosure I am long XOM I receive no compensation to write about any specific stock sector or theme |
XOM | Exxon Mobil Set To Become A 500 Billion Company | Big Oil has been moving higher with the market lately These mega cap stocks can be like battleships to move so when they do break out it is something to notice Exxon Mobil XOM is doing that now Take a look The daily chart below shows a rising wedge making a new high over the resistance area at 57 from February and March The Relative Strength Index RSI is bullish and rising and the Moving Average Convergence Divergence indicator MACD is positive Exxon Mobile XOM DailyBoth support further upside Some might think that it is best to wait for the wedge break to play the stock A break higher is a buy a break lower is a sell 110 or higher perhaps But if you look a bit longer the scale of the weekly chart is very promising It shows a confirmation of a breakout of a 4 year ascending triangle with a target of at least 118 The RSI and MACD on this time frame are equally supportive of a move higher Exxon Mobile XOM WeeklyAnd rolling out to the Monthly chart shows a triple top breakout and movement higher between the Lower Median and Median Lines of the Andrew s pitchfork Finally the 3 box reversal Point and Figure chart shows a price objective of 99 Whether it is 99 or 110 or 118 they are all big moves from here The Battleship is steaming Exxon Mobile XOM MonthlyDisclaimer 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 |
TEVA | Israel stocks lower at close of trade TA 25 down 1 45 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Biomed Oil Gas and Technology sectors led shares lower
At the close in Tel Aviv the TA 25 lost 1 45
The best performers of the session on the TA 25 were Frutarom TA FRUT which rose 1 45 or 230 points to trade at 16080 at the close Meanwhile Strauss Group TA STRS added 0 97 or 64 points to end at 6685 and Mizrahi Tefahot TA MZTF was up 0 95 or 41 points to 4360 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 5 77 or 340 points to trade at 5548 at the close Delek Group TA DLEKG declined 5 31 or 6100 points to end at 108700 and Teva TA TEVA was down 4 48 or 1100 points to 23480
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 222 to 106 and 129 ended unchanged
Shares in Frutarom TA FRUT rose to all time highs gaining 1 45 or 230 to 16080
Crude oil for June delivery was up 0 37 or 0 21 to 57 20 a barrel Elsewhere in commodities trading Brent oil for delivery in June rose 0 41 or 0 27 to hit 65 09 a barrel while the June Gold contract rose 0 78 or 9 40 to trade at 1212 60 a troy ounce
USD ILS was down 0 65 to 3 8627 while EUR ILS rose 0 14 to 4 2405
The US Dollar Index was down 0 76 at 96 16 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 69 | Investing com Israel stocks were lower after the close on Wednesday as losses in the Banking Oil Gas and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 fell 0 69
The best performers of the session on the TA 25 were Teva TA TEVA which rose 1 41 or 330 points to trade at 23810 at the close Meanwhile OPKO Health Inc TA OPK added 0 67 or 37 points to end at 5585 and Delek Group TA DLEKG was up 0 64 or 700 points to 109400 in late trade
The worst performers of the session were Israel Corp TA ILCO which fell 2 16 or 3100 points to trade at 140100 at the close Gazit Globe TA GZT declined 2 08 or 108 points to end at 5082 and Delek Drilling LP TA DEDRp was down 1 87 or 30 points to 1571
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 220 to 117 and 120 ended unchanged
Crude oil for June delivery was up 2 14 or 1 22 to 58 28 a barrel Elsewhere in commodities trading Brent oil for delivery in June rose 1 45 or 0 94 to hit 65 58 a barrel while the June Gold contract fell 0 34 or 4 10 to trade at 1209 80 a troy ounce
USD ILS was up 0 20 to 3 8610 while EUR ILS rose 1 66 to 4 3024
The US Dollar Index was down 1 18 at 95 05 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 64 | Investing com Israel stocks were lower after the close on Sunday as losses in the Banking Biomed and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 declined 0 64 to hit a new 1 month low
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 54 or 600 points to trade at 24200 at the close Meanwhile Perrigo TA PRGO added 1 91 or 1360 points to end at 72680 and Migdal Insurance TA MGDL was up 1 62 or 7 6 points to 476 0 in late trade
The worst performers of the session were Strauss Group TA STRS which fell 3 30 or 227 points to trade at 6647 at the close Paz Oil TA PZOL declined 2 56 or 1510 points to end at 57510 and Discount TA DSCT was down 2 55 or 17 3 points to 661 9
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 171 to 152 and 133 ended unchanged
Crude oil for June delivery was down 0 73 or 0 43 to 59 20 a barrel Elsewhere in commodities trading Brent oil for delivery in June fell 0 42 or 0 28 to hit 66 50 a barrel while the June Gold contract fell 0 42 or 5 00 to trade at 1177 40 a troy ounce
USD ILS was up 0 58 to 3 8849 while EUR ILS rose 0 36 to 4 3502
The US Dollar Index was up 0 53 at 95 38 |
TEVA | Israel stocks higher at close of trade TA 25 up 1 24 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Oil Gas Real Estate and Biomed sectors led shares higher
At the close in Tel Aviv the TA 25 gained 1 24
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 7 15 or 393 points to trade at 5890 at the close Meanwhile Azrieli Group TA AZRG added 4 47 or 720 points to end at 16820 and Avner L TA AVNRp was up 3 17 or 9 4 points to 305 9 in late trade
The worst performers of the session were Migdal Insurance TA MGDL which fell 2 16 or 10 2 points to trade at 461 5 at the close Teva TA TEVA declined 1 56 or 370 points to end at 23290 and Osem TA OSEM was down 0 27 or 22 points to 8230
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 224 to 115 and 117 ended unchanged
Crude oil for June delivery was down 0 02 or 0 01 to 60 74 a barrel Elsewhere in commodities trading Brent oil for delivery in July rose 0 28 or 0 19 to hit 67 57 a barrel while the June Gold contract rose 1 81 or 21 60 to trade at 1214 00 a troy ounce
USD ILS was down 0 69 to 3 8344 while EUR ILS rose 0 56 to 4 3529
The US Dollar Index was down 1 03 at 93 72 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 33 | Investing com Israel stocks were higher after the close on Sunday as gains in the Oil Gas Technology and Biomed sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 33
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 5 84 or 358 points to trade at 6483 at the close Meanwhile ICL Israel Chemicals Ltd TA ICL added 2 52 or 68 points to end at 2770 and Avner L TA AVNRp was up 2 31 or 7 0 points to 309 5 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 06 or 480 points to trade at 22870 at the close Azrieli Group TA AZRG declined 1 50 or 250 points to end at 16390 and Nice TA NICE was down 1 18 or 300 points to 25100
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 164 to 159 and 133 ended unchanged
Shares in OPKO Health Inc TA OPK rose to all time highs rising 5 84 or 358 to 6483
Crude oil for June delivery was unchanged 0 00 or 0 00 to 60 54 a barrel Elsewhere in commodities trading Brent oil for delivery in July rose 0 40 or 0 27 to hit 66 97 a barrel while the June Gold contract fell 0 13 or 1 60 to trade at 1223 60 a troy ounce
USD ILS was down 0 19 to 3 8098 while EUR ILS rose 0 09 to 4 3620
The US Dollar Index was down 0 12 at 93 29 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 57 | Investing com Israel stocks were higher after the close on Thursday as gains in the Banking Communication and Biomed sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 57 to hit a new all time high
The best performers of the session on the TA 25 were Teva TA TEVA which rose 2 38 or 560 points to trade at 24050 at the close Meanwhile Azrieli Group TA AZRG added 2 09 or 340 points to end at 16640 and Elbit Systems TA ESLT was up 2 03 or 600 points to 30170 in late trade
The worst performers of the session were Gazit Globe TA GZT which fell 2 57 or 128 points to trade at 4850 at the close Kenon Holdings Ltd TA KEN declined 1 11 or 93 00 points to end at 8265 00 and Paz Oil TA PZOL was down 1 06 or 620 points to 57900
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 176 to 148 and 131 ended unchanged
Crude oil for July delivery was up 2 85 or 1 68 to 60 66 a barrel Elsewhere in commodities trading Brent oil for delivery in July rose 2 61 or 1 70 to hit 66 72 a barrel while the June Gold contract fell 0 24 or 2 90 to trade at 1205 80 a troy ounce
USD ILS was down 0 07 to 3 8731 while EUR ILS rose 0 13 to 4 3065
The US Dollar Index was down 0 26 at 95 41 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 66 | Investing com Israel stocks were higher after the close on Sunday as gains in the Communication Oil Gas and Insurance sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 66
The best performers of the session on the TA 25 were Mizrahi Tefahot TA MZTF which rose 2 64 or 116 points to trade at 4518 at the close Meanwhile OPKO Health Inc TA OPK added 2 55 or 172 points to end at 6913 and Delek Drilling LP TA DEDRp was up 2 28 or 38 points to 1704 in late trade
The worst performers of the session were Teva TA TEVA which fell 1 75 or 410 points to trade at 23070 at the close Leumi TA LUMI declined 1 32 or 20 points to end at 1493 and Perrigo TA PRGO was down 0 51 or 380 points to 74330
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 204 to 136 and 115 ended unchanged
Crude oil for July delivery was up 4 52 or 2 61 to 60 29 a barrel Elsewhere in commodities trading Brent oil for delivery in July rose 4 67 or 2 92 to hit 65 50 a barrel while the August Gold contract rose 0 16 or 1 90 to trade at 1190 70 a troy ounce
USD ILS was down 0 06 to 3 8676 while EUR ILS rose 0 32 to 4 2504
The US Dollar Index was down 0 19 at 96 94 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 07 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Biomed Insurance and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 declined 0 07
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 2 66 or 185 points to trade at 7140 at the close Meanwhile Frutarom TA FRUT added 1 00 or 150 points to end at 15220 and Elbit Systems TA ESLT was up 0 86 or 250 points to 29310 in late trade
The worst performers of the session were Kenon Holdings Ltd TA KEN which fell 2 45 or 199 00 points to trade at 7938 00 at the close Teva TA TEVA declined 1 11 or 260 points to end at 23090 and Azrieli Group TA AZRG was down 0 97 or 160 points to 16340
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 199 to 155 and 101 ended unchanged
Shares in OPKO Health Inc TA OPK rose to all time highs gaining 2 66 or 185 to 7140
Crude oil for July delivery was up 1 33 or 0 80 to 61 00 a barrel Elsewhere in commodities trading Brent oil for delivery in July rose 0 72 or 0 47 to hit 65 34 a barrel while the August Gold contract rose 0 45 or 5 30 to trade at 1194 00 a troy ounce
USD ILS was down 0 51 to 3 8525 while EUR ILS rose 1 30 to 4 2861
The US Dollar Index was down 1 43 at 96 14 |
XOM | How To Survive The Euro Crisis | As I ve written the euro is not that different from Enron WorldCom or the Madoff fund All of these organizations were able to pretend they were profitable or solvent long after they were insolvent Now markets are finally acknowledging the intractability of the Euro debacle Part of this acknowledgement also means coming to terms with structural decline in global productivity created by fiscal and monetary policies that espoused wastefulness over quite a long time Markets have finally begun to acknowledge that interest rates when kept too low for too long instead of boosting it Economic growth forecasts are being lowered around the world Worse forecasts of a recovery are few and far between It is as if the world is finally accepting the mess we are in The worst is not behind us but it will be soon As bad as things are they are on the margin getting better Acknowledging problems means they can be albeit slowly addressed One could argue that Greece Italy Ireland France and Spain are now being forced to engage greater economic change than anytime in centuries The dismal financial reality of not being able to pay the bills forces politicians address the unpopular need to change long standing policies that are simply not sustainable The gradual change in economic behavior being forced on the troubled countries in Europe is likely to have a much more lasting effect than sudden change which would almost certainly be viewed as cruel and oppressive The populations that endured the change would likely resent it and revert back to their old ways as soon as they could Under the slow gradual approach where authorities give them every chance to avoid change they gently prove that they have no choice They gently prove that their previously chosen approach is an abject failure In so doing they pave the way for long term structural changes that will lead to superior capital allocation over the long run A similar trend is making waves in the U S Several states are engaging in pro growth austerity cutting taxes and spending at the same time Many of these states were forced into this action by mounting entitlement and pension liabilities on top of budget deficits States like Wisconsin Ohio and others are seeing rather impressive economic results from clawing back on promises to unions they could not keep and cutting taxes at the same time I see the mounting successes of pro growth austerity laying the groundwork for a similar end to profligate fiscal policy as the Arab spring did for authoritarian political regimes Increasingly other forms of economy are held accountable to the capitalistic standard among the most prosperous in the world If they do not perform at comparable levels unrest is likely to follow For stock pickers the current volatile environment is like a forge that steels the commitment to true value and melts away the temptation to run with momentum The easy money days are coming to an end and now we will see who has done their diligence Here is what my diligence led me to buy and short My fund owns Apple AAPL and I remain amazed that so few have focused on the most important driver of its stock price the company s 270 return on invested capital ROIC As detailed in Apple represents the best of corporate America because of its elite level of profitability Apple generated enough cash flow to pay off its original investors 2 7 times in 2011 At the same time the stock is cheap and implies astonishingly low profit growth At 570 share the current valuation suggests that Apple will grow its NOPAT by only 30 In fiscal year 2012 Consensus for EPS growth is over 60 this year 2012 and around 15 for 2013 If Apple grows its NOPAT by 15 compounded annually for 3 years the stock is worth north of 700 I also like Exxon Mobil XOM and ConocoPhillips COP which like AAPL gets my Very Attractive rating because of their positive and rising and cheap valuations Both stocks offer excellent risk reward because of their excellent cash flows and the low expectations in their stocks prices At 82 share the expectations in XOM s stock price imply the company s after tax cash flow NOPAT will permanently decline by over 40 For COP at 51 30 share the stock price implies the company s NOPAT will permanently decline by nearly 70 With valuations so low investors have little to lose and lots to gain in these stocks Stocks to avoid or short are Delta Airlines DAL and US Steel X Both of these stocks are sensitive to an anemic economic environment and are saddled with huge pension and debt liabilities In Bail Out of DAL I point out that an accounting loophole allows DAL to minimize the impact of its mounting pension liabilities on earnings In addition 26 billion in pension and debt liabilities means equity investors are at the end of a long line of stakeholders hoping for cash flows US Steel is in a similar situation except that it has yet to report an annual profit in recent history Sure 2012 started out pretty well but I think few expect the rest of the year to be as good as 2012 Most economists are predicting 2013 GDP will be lower than this year s US Steel also has serious pension and debt liabilities The pension issues are not apparent in EPS because of an accounting loophole As detailed here X boosted its 2011 earnings by increasing its expected return on plan assets assumption for its pensions to 7 79 up from 7 75 in 2010 higher than 90 of all companies Its pensions are underfunded by 5 2 billion More details on X s pension issues are here Disclosure I own XOM AAPL and COP I am short DAL and X I receive no compensation to write about any specific stock sector or theme |
XOM | Exxon Mobil Set Up For Move To 52 Week High | Exxon Mobil stock symbol XOM reversed course on the weekly chart to post a solid gain on Friday The rally helped form a new main bottom at 77 13 while setting up the market for a potential test of the series of main tops ranging from 87 52 to 88 23 Strong upside momentum over the near term could drive XOM to a new 52 week high triggering an eventual move to the May 2008 top at 96 12 Stronger demand for equities and commodities will be the catalyst behind this move |
XOM | Today s Rally In A Chart | All any trader or an investor has to do to see why the stock market traded higher yesterday is to simply look at a chart of the U S Dollar Index Yesterday the U S Dollar Index futures DX U2 plunged around 10 50 am EST Once the U S Dollar Index started to decline the major stock indexes started to inflate and trade sharply higher on the session The S P 500 Index e mini futures ES U2 rallied higher by nearly 20 0 points off of the morning lows as the U S Dollar Index sold off The U S Dollar Index chart is clearly the most important chart that any trader can follow Traders that do not have a U S Dollar Index can follow the PowerShares DB US Dollar Index Bullish NYSEARCA UUP Some leading equities that will rally and inflate higher when the U S Dollar Index declines includes United States Oil Fund LP ETF NYSEARCA USO Exxon Mobil Corporation NYSE XOM Market Vectors Agribusiness ETF NYSEARCA MOO and the SPDR Dow Jones Industrial Average ETF NYSEARCA DIA Traders should remember that when the U S Dollar Index rallies these same equities will deflate and trade lower |
XOM | Best And Worst ETFs And Mutual Funds All Cap Blends | The all cap blend style ranks third out of the twelve fund styles as detailed in my style roadmap It gets my Neutral rating which is based on aggregation of ratings of 33 ETFs and 669 mutual funds in the all cap blend style as of July 17 2012 Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the style Not all all cap blend style ETFs and mutual funds are created the same The number of holdings varies widely from 8 to 3280 which creates drastically different investment implications and ratings The best ETFs and mutual funds allocate more value to Attractive or better rated stocks than the worst which allocate too much value to Neutral or worse rated stocks To identify the best and avoid the worst ETFs and mutual funds within the all cap blend style investors need a predictive rating based on 1 stocks ratings of the holdings and 2 the all in expenses of each ETF and mutual fund Investors need not rely on backward looking ratings Investors seeking exposure to the all cap blend style should buy one of the Attractive or better rated ETFs or mutual funds from Figures 1 and 2 See ratings and reports on all ETFs and mutual funds in this style on my free mutual fund and ETF screener Figure 1 ETFs with the Best and Worst Ratings Top 5 Best ETFs exclude ETFs with less NAV s less than 100 million Sources New Constructs LLC and company filings Four ETFs are excluded from Figure 1 because their total net assets TNA are below 100 million and do not meet our liquidity standards Figure 2 Mutual Funds with the Best and Worst Ratings Top 5 Best mutual funds exclude funds with NAV s less than 100 million Sources New Constructs LLC and company filingsHennessy Funds Trust Hennessy Cornerstone Large Growth Fund HILGX and Hennessy Funds Trust Hennessy Cornerstone Large Growth Fund HFLGX are excluded from Figure 2 because their total net assets TNA are below 100 million and do not meet our liquidity standards Schwab US Dividend Equity ETF SCHD is my top rated all cap blend ETF and BlackRock LargeCap Series Funds Inc BlackRock LargeCap Growth Retirement Portfolio MKLHX is my top rated all cap blend mutual fund Both earn my Attractive rating Guggenheim Wilshire 4500 Completion ETF WXSP is my worst rated all cap blend ETF and ProFunds Banks UltraSector ProFund BKPSX is my worst rated all cap blend mutual fund WXSP earns my Dangerous and BKPSX earns my Very Dangerous rating Figure 3 shows that 589 out of the 2846 stocks nearly 50 of the total net assets held by all cap blend ETFs and mutual funds get an Attractive or better rating However only 2 out of 33 all cap blend ETFs less than 2 of total net assets and 31 out of 669 all cap blend mutual funds less than 1 of total net assets get an Attractive or better rating The takeaways is investors have not identified funds with the best holdings allocating 98 of the total net assets in all cap blend ETFs to Neutral rated ETFs and 99 of the total net assets in all cap mutual funds to funds rated Neutral or Dangerous Figure 3 All Cap Blend Style Landscape For ETFs Mutual Funds and Stocks Sources New Constructs LLC and company filings As detailed in the fund industry offers many cheap funds but very few funds with high quality stocks or with what I call good portfolio management Investors need to tread carefully when considering all cap blend ETFs and mutual funds as 50 of all cap blend ETF and mutual fund total net assets are allocated to Neutral or worse rated stocks Only 2 ETFs and 31 mutual funds in the all cap blend style allocate enough value to Attractive or better rated stocks to earn an Attractive rating Exxon Mobil XOM is one of my favorite stocks held by all cap blend ETFs and mutual funds and earns my Very Attractive rating Exxon Mobil s current stock price 85 00 implies that its profits will decline by 38 permanently What do I mean by that An asset s value equals the present value of its future cash flows If you forecast Exxon s 2011 operating profits or NOPAT with absolutely no growth into perpetuity and discount those profits back to the present value you ll find that the current share price is 38 below the value given by a permanent zero growth forecast If you agree that Exxon s profits are going to decline by 38 permanently then today s stock price might seem reasonable But if you think those expectations are too pessimistic for a company that has grown its NOPAT in each of the last five years while boosting ROIC from 11 7 to 15 4 then you ll see why XOM gets our Very Attractive rating High and rising ROIC matched with consistent growth makes this company a great stock to pick up when the Mr Market is overly pessimistic BEAM Inc BEAM is one of my least favorite stocks held by all cap blend ETFs and mutual funds and earns my Very Dangerous rating In 2010 when Fortune Brands spun off its home security and golf portfolios to focus on its distilled spirits brands some investors had high hopes To be fair BEAM s portfolio contains some well known and popular names but has the company been profitable I think a sober assessment of BEAM s 5 ROIC post spin off would indicate that the restructuring has not left behind a value creating high returns business Spirits is a competitive industry and a lot of BEAM s future growth is going to need to come from expensive acquisitions Worse yet for BEAM to justify its current stock price operations are going to need to improve dramatically growing profits 15 compounded annually for the next 20 years There is not much upside for an investor when expectations of such high growth are already baked into today s stock price Figures 4 and 5 show the rating landscape of all all cap blend ETFs and mutual funds Figure 4 Separating the Best ETFs From the Worst Funds Sources New Constructs LLC and company filingsFigure 5 Separating the Best Mutual Funds From the Worst FundsSources New Constructs LLC and company filings Disclosure I own XOM I receive no compensation to write about any specific stock sector style or theme |
TEVA | Neurocrine s Stock Up FDA Nod For Tardive Dyskinesia Drug | Shares of Neurocrine Biosciences Inc NASDAQ NBIX soared 25 on Tuesday after announcing the FDA approval ofIngrezza valbenazine capsules a day before for the treatment of adults with tardive dyskinesia TD Ingrezza is the first and the only drug approved by the FDA for the treatment of adults with TD
Neurocrine s shares outperformed the Zacks classified industry year to date The stock rallied 34 compared with the industry s gain of 0 5
The company said that Ingrezza a selective VMAT2 inhibitor has been studied in more than 1 000 individuals and more than 20 studies The studies showed that INGREZZA significantly improved TD symptoms compared to placebo through six weeks It also helped in reducing involuntary movements observed through 48 weeks of treatment These results combined with convenient once daily dosing represent a huge opportunity for patients suffering from TD
Now with limited options available for the treatment of TD the approval of Ingrezza is a good news for Neurocrine Neurocrine has created the INBRACE patient support program which will immediately start accepting treatment initiation forms from health care professionals prescribing INGREZZA The INBRACE program will work closely with patients and provide them with customized services
Moving ahead Ingrezza will be available through a select pharmacy network and promotion to healthcare professionals will begin on May 1 2017
Manwhile Ingrezza s approval could pose a threat to pharmaceutical giant Teva Pharmaceutical Industries Limited s NYSE TEVA drug Austedo deutetrabenazine which is in line to get approval for the treatment of TD Teva s new drug application NDA for deutetrabenazine was granted priority review by the FDA in Feb 2017 Furthermore the FDA has assigned a Prescription Drug User Fee Act PDUFA goal date of August 30 2017 Neurocrine Biosciences Inc Price
Neurocrine does not have a Zacks Rank Some stocks in the health care sector include Heska Corp NASDAQ HSKA and Galena Biopharma Inc NASDAQ GALE sporting a Zacks Rank 1 Strong Buy You can see
Heska s earnings estimates moved up from 1 53 to 1 65 for 2017 and from 1 90 to 2 01 for 2018 over the last 60 days The company posted a positive earnings surprise in all of the last four quarters with an average beat of 291 54 Its share price increased 41 5 year to date
Galena Biopharma s loss estimates narrowed from 2 27 to 58 cents for 2017 and from 92 cents to 73 cents for 2018 over the last 60 days The company posted a positive earnings surprise in two of the four trailing quarters with an average beat of 53 83
The Best Worst of Zacks
Today you are invited to download the full up to the minute list of 220 Zacks Rank 1 Strong Buys free of charge From 1988 through 2015 this list has averaged a stellar gain of 25 per year Plus you may download 220 Zacks Rank 5 Strong Sells Even though this list holds many stocks that seem to be solid it has historically performed 6X worse than the market |
TEVA | Israel stocks higher at close of trade TA 25 up 0 27 | Investing com Israel stocks were higher after the close on Sunday as gains in the Banking Oil Gas and Biomed sectors led shares higher
At the close in Tel Aviv the TA 25 added 0 27
The best performers of the session on the TA 25 were OPKO Health Inc TA OPK which rose 3 69 or 210 points to trade at 5895 at the close Meanwhile Israel Corp TA ILCO added 2 70 or 3800 points to end at 144800 and Azrieli Group TA AZRG was up 2 42 or 400 points to 16900 in late trade
The worst performers of the session were Perrigo TA PRGO which fell 2 06 or 1580 points to trade at 75150 at the close Teva TA TEVA declined 1 59 or 410 points to end at 25300 and Elbit Systems TA ESLT was down 1 57 or 500 points to 31250
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 205 to 137 and 115 ended unchanged
Crude oil for June delivery was down 0 79 or 0 46 to 57 28 a barrel Elsewhere in commodities trading Brent oil for delivery in June rose 0 85 or 0 55 to hit 65 40 a barrel while the June Gold contract fell 1 32 or 15 80 to trade at 1178 50 a troy ounce
USD ILS was up 0 25 to 3 9330 while EUR ILS rose 0 36 to 4 2613
The US Dollar Index was down 0 37 at 97 07 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 20 | Investing com Israel stocks were lower after the close on Monday as losses in the Oil Gas Technology and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 lost 0 20
The best performers of the session on the TA 25 were Discount TA DSCT which rose 1 56 or 10 6 points to trade at 689 8 at the close Meanwhile Gazit Globe TA GZT added 1 27 or 65 points to end at 5191 and Frutarom TA FRUT was up 1 21 or 190 points to 15850 in late trade
The worst performers of the session were Teva TA TEVA which fell 2 85 or 720 points to trade at 24580 at the close Avner L TA AVNRp declined 1 61 or 4 9 points to end at 300 0 and Elbit Systems TA ESLT was down 1 41 or 440 points to 30810
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 179 to 161 and 117 ended unchanged
Crude oil for June delivery was down 0 37 or 0 21 to 56 94 a barrel Elsewhere in commodities trading Brent oil for delivery in June fell 0 96 or 0 62 to hit 64 66 a barrel while the June Gold contract rose 2 34 or 27 50 to trade at 1202 50 a troy ounce
USD ILS was down 0 90 to 3 8975 while EUR ILS fell 0 47 to 4 2413
The US Dollar Index was down 0 13 at 96 95 |
XOM | U S futures steady eyes on central banks Dow Jones down 0 02 | Investing com U S stock futures were steady on Thursday as investors remained cautious ahead of European Central Bank and Bank of England policy meetings later in the day as well as the release of key U S economic data Ahead of the open the Dow Jones Industrial Average futures pointed to a 0 02 loss S P 500 futures signaled a 0 03 decline while the Nasdaq 100 futures indicated a 0 03 gain The ECB was widely expected to announce an interest rate cut to 0 75 from the current record low 1 00 to help bolster growth in the region following a recent string of weak economic data Investors were also looking ahead to the BoE s policy meeting later Thursday amid growing expectations for a fresh round of stimulus measures to shield the recession hit U K economy from the ongoing debt crisis in the euro zone Meanwhile markets were eyeing Friday s U S nonfarm payrolls report amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy which has been hit by the ongoing crisis in the euro zone Tech stocks were expected to remain active after Taiwanese smartphone maker HTC won a London court ruling on Wednesday against Apple over a series of patent infringement claims linked to technology used in its mobile devices Shares in Apple fell 0 23 in pre market trade The auto sector was also likely to be in focus on Thursday as U S auto parts supplier Visteon said it would offer USD800 million to take full control of South Korean car air conditioner maker Halla Climate Control Analysts cautioned however that a key shareholder may hold out for more Meanwhile frustrated with years of slipping market share in Brazil General Motors said it is overhauling half of its lineup in order to grow faster than its rapidly multiplying rivals according to a Reuters report Elsewhere in company news U S buyout fund Carlyle Group said that it has acquired 49 of China s Mandarin Hotel Holdings for an undisclosed sum giving it control of the company In the financial sector Barclays tumbled 1 61 in early trading after Moody s Investors Service changed the outlook on the bank to negative from stable citing the uncertain management outlook after recent departures in the light of the Libor scandal While testifying before U K lawmakers on Wednesday Robert Diamond who quit this week as chief executive officer of Barclays blamed other banks for misleading markets about their ability to borrow adding that he was disappointed regulators failed to act on repeated warnings from Barclays Other stocks in focus included oil and gas major Exxon Mobil which is reportedly weighing a sale of its German Esso gas station chain a unit that could represent over EUR1 billion Across the Atlantic European stock markets were mixed The EURO STOXX 50 edged up 0 09 France s CAC 40 eased 0 03 Germany s DAX climbed 0 57 while Britain s FTSE 100 added 0 25 During the Asian trading session Hong Kong s Hang Seng Index eased up 0 3 while Japan s Nikkei 225 Index shed 0 3 Also Thursday Spain sold EUR2 997 billion of government bonds in line with the full targeted amount of EUR3 billion but at higher yields from last month The yield on Spanish 10 year bonds rose to 6 53 following the auction re approaching the critical 7 level deemed as unsustainable in the long term Later in the day the U S was to publish a report by payroll processing firm ADP on non farm employment change followed by government data on unemployment claims The Institute of Supply Management was also to release a report on U S service sector activity |
XOM | Four Apple Focused ETFs | Apple Nasdaq AAPL kicks off another eagerly anticipated Worldwide Developers Conference today at the Moscone conference center in San Francisco It will be a bittersweet occasion for the tech juggernaut because this is the first WWDC since the passing of co founder and CEO Steve Jobs the legendary Silicon Valley visionary It can be said that expectations run too high and that too much emphasis is placed on these confabs regarding the near term implications for the stock but one thing is for certain Apple is already the most spotlighted stock out there and WWDC just gives traders and investors one more good reason to listen to what CEO Tim Cook has to say While analysts don t expect the company to show off a new iPhone this year Cook probably will highlight new iPhone software and at least talk about new Mac software to come We should also see a few new Macs In other words there should be enough ammo out of WWDC to put Apple shares in play in this week Those that are priced out of Apple s stock because of the lofty price tag or those opting for a more diverse approach have plenty of ETFs to choose from and the following could move on WWDC news ProShares UltraShort Technology NYSE This is very much a short term trading idea and a bearish one at that Assume for a moment that Apple doesn t thrill its loyal followers with another epic new product or upgrade at WWDC That could provoke a knee jerk sell off in the stock immediately lifting thinly traded REW in the process So why REW over the far more liquid ProShares UltraPro Short QQQ Nasdaq Because REW is the double leveraged inverse equivalent of the of the Dow Jones U S Technology Index which is tracked by this ETF iShares Dow Jones U S Technology Sector Index Fund NYSE With an allocation of almost 23 the iShares Dow Jones U S Technology Sector Index Fund is still the ETF with largest weight to the iPhone and iPad maker That makes this ETF a must watch for WWDC as IYW s Apple exposure justifies the choice of REW as a potential bearish play IYW is the ETF poster boy for the benefits and disadvantages of an ETF being excessively weighted to just one stock At least IYW makes things easy It s a buy when a Apple is rising and a sell when the stock is faltering PowerShares QQQ Nasdaq As the Nasdaq 100 tracking fund and as an ETF with almost 19 allocation to Apple the PowerShares QQQ cannot be ignored when it comes to ETF proxies on Apple And as the premier Nasdaq 100 tracking ETF QQQ also offers decent exposure to Apple suppliers that also have the potential to move on WWDC related news QQQ has found support at 62 and following last week s 4 gain for the Nasdaq the ETF looks poised to run higher Hedge long positions in QQQ with SQQQ Global X NASDAQ 500 ETF Nasdaq QQQV Ah the power of the rising market cap In February just as Apple was starting to increase its lead over Exxon Mobil NYSE for the title of largest U S company by market value Global X had a 13 weight to Apple Today the ETF s Apple exposure has risen to nearly 15 QQQV is easily one of the most unheralded ETFs with a double digit weight to Apple though the fund is worth paying attention to It s up 11 year to date Other options to consider The Technology Select Sector SPDR NYSE the iShares S P Global Technology Index Fund NYSE and the Vanguard Information Technology ETF NYSE The ETF Professor |
XOM | The Right Formula For Markets | Last weekend I had the chance to experience the thrill of Formula 1 Grand Prix du Canada in Montreal Seeing the incredible fluidity and flexibility of every race car it got me thinking about how F1 has evolved over the past 60 years Cars are now aerodynamic like a jet fighter designed with wings that use the same principle as an aircraft and tires that withstand tremendous forces Even with all these incredible advancements in technology rules and regulations have been streamlined to reduce costs and improve safety There hasn t been a fatal accident in the motorsport since 1994 The ever evolving rules seem to have improved competition as well This year the first seven races have resulted in a different winner each time breaking a historical trend of only a few drivers dominating the track When asked about this phenomenon Peter Sauber the team boss of Sauber Ferrari says he thinks fans are delighted with the unpredictability the sheer variety and the unbelievably close competition F1 s fine tuning of regulations to respect the risks and rewards of racing is the formula government policies should strive for when regulating businesses Instead as The Economist pointed out a few months ago excessive regulations are acting as speed bumps today Not only is the financial industry burdened with Sarbanes Oxley and Dodd Frank companies in telecommunications materials and utilities are also highly regulated Regulation In ModerationThoughtful regulation in moderation is needed to maintain healthy competition Sporting events need referees and officials to keep the game fair and exciting no spectator wants them to control the outcome Excess regulation on the other hand can dilute the efforts of entrepreneurs and result in fewer innovations lower profitability and less job creation Compare for example the performance of the telecom materials and utilities sectors to Apple The company has been the winning driver of the market over the past decade and its business operates in a less regulated environment Shortly after his death Michael Bloomberg wrote that Steve Jobs was not just a techie visionary but the virtuoso executive who built the world s second most valuable company after Exxon Mobil As you can see below Apple s market capitalization has grown so significantly that J P Morgan declared the company a sector unto itself AAPL is now bigger than all of the companies in the telecom sector all of the materials stocks and all of the utilities companies combined generating more profit on an earnings before interest taxes depreciation and amortization EBITDA basis than any of those sectors Bloomberg says Jobs embodied the Silicon Valley entrepreneur with an intensity and ingenuity that changed how people interacted with technology How innovative could Steve Jobs be if Apple operated under an excessive regulatory environment Apple s success is a great example of what can be accomplished in a free market with sufficient regulation Rules and regulations are unquestionably needed yet there shouldn t be more officials than players or more rules than plays Sporting and business is at its best when there s fluidity and flexibility I believe in policies that pursue a balance between prudent regulation and capitalistic risk taking America can maintain its competitive edge and create jobs for more Americans even in a challenging global economy like we have today All opinions expressed and data provided are subject to change without notice Some of these opinions may not be appropriate to every investor The following security mentioned was held by one or more of U S Global Investors Funds as of 3 31 12 Exxon Mobil |
XOM | These 3 Stocks Control The Entire U S Market | If you ever wonder what type of day it is going to be in the stock market you can simply follow three stocks When these three stocks together trade higher on the session the markets are likely going to finish positive The opposite is true as well when these three stocks trade lower on the session the major stock indexes will usually finish in negative territory When these stocks are mixed the markets are usually going to finish slightly higher or lower The three most important stocks in the market are J P Morgan Chase Co NYSE JPM Exxon Mobil Corp NYSE XOM and Apple Inc NASDAQ AAPL J P Morgan Chase Co NYSE JPM is the most important financial stock in the United States and possibly the most important financial stock in the world at this time This stock is still the leading financial stock despite its highly publicized recent trading loss When JPM stock moves the markets listen Friday JPM stock was trading higher by 0 08 cents to 34 39 a share Exxon Mobil Corp NYSE XOM is the largest energy company in the world It has the second largest market capitalization in the entire stock universe at 377 billion This stock is a major component of the S P 500 Index and the Dow Jones Industrial Average Friday XOM stock was trading higher by 0 56 cents to 81 19 a share Short term traders should watch for intra day resistance around the 81 37 and 81 75 levels Apple Inc NASDAQ AAPL is the leading technology stock in the world This company s growth has been responsible for putting companies such as Research In Motion NASDAQ RIMM and Nokia ADR NYSE NOK into possible bankruptcy AAPL stock also moves the markets when it trades higher or lower as it is a huge part of the NASDAQ 100 and the S P 500 Index Every trader and investor must follow the action in AAPL stock as it is the largest stock by market capitalization in the world Friday AAPL stock was trading lower by 1 41 to 570 75 a share Short term traders can watch for intra day support around the 569 40 and 564 00 levels |
XOM | Why We re Cautious On Apple | In yesterday s commentary we cited the punk performance of Apple AAPL shares in recent weeks as evidence that the stock market as a whole may have entered a bear market Apple as a barometer That s a big stretch wrote a regular contributor to the Rick s Picks forum We disagree After all Apple is the most valuable publicly traded company in the world bigger even than Exxon Mobil XOM Given the extraordinarily high expectations that investors and consumers have for the company even a small disappointment a downtick in sales perhaps could hold serious implications for Apple shares That in turn could precipitate a major trauma on Wall Street since so many portfolio managers owe their bonuses in recent years more to Apple s steep rise than to any other factor Investor sentiment aside Apple s continued success as a retailer is crucial to a segment of the economy that has been devastated by competition from the Internet As brick and mortar stores have fallen one by one Apple s showrooms have thrived with lines out the door whenever new products are released Under the circumstances the much awaited iPhone5 had better be stellar in every way since Samsung will be breathing down Apple s neck with strong new products of its own Nor are consumers likely to be impressed by merely incremental improvements It takes a lot of Wow factor to get them to pay up for Apple s relatively pricey hardware They are going to be even more demanding as new pricing schemes being rolled out by the phone companies effectively reduce or eliminate the subsidy that has made many smart phones a giveaway item when tied to service contracts Bear Still Speculative From a technical standpoint the presumption of a bear market in Apple shares is still speculative Rallies have lacked their characteristic oomph in recent weeks even as corrective downtrends have exceeded our Hidden Pivot targets Still that s nothing that a burst of energy could not cure in a week or even in a few days since bulls could go on the attack again with a booster stage rally of just 10 Notice in the chart above that that would surpass two prior peaks that occurred in early May It may look like small stuff on the chart but it would generate the first robustly bullish impulse leg of hourly chart degree since late April We ll reserve judgment until we ve seen how the stock handles these external highs In the meantime Apple should not get a free pass merely because the company and its products still generate more buzz and its showrooms more traffic than any other company in the consumer electronics business |
XOM | Major Level On XOM Approaching | Exxon Mobil Corporation NYSE XOM has been roaring higher on a major rally that has had some legs While the move is impressive the stock is inching into a master short level at 85 60 This is a gap fill going back to May 5th 2012 Based on the PPT price patter and time method of pivot calculations this stock should turn lower in this area The downside target is 83 15 |
TEVA | Israel stocks lower at close of trade TA 25 down 1 07 | Investing com Israel stocks were lower after the close on Thursday as losses in the Technology Insurance and Biomed sectors led shares lower
At the close in Tel Aviv the TA 25 fell 1 07
The best performers of the session on the TA 25 were Paz Oil TA PZOL which rose 0 52 or 300 points to trade at 57990 at the close Meanwhile First International Bank of Israel TA FTIN added 0 26 or 14 points to end at 5316 and Teva TA TEVA was down 0 04 or 10 points to 24790 in late trade
The worst performers of the session were Frutarom TA FRUT which fell 3 50 or 500 points to trade at 13800 at the close Ormat Technologies TA ORA declined 2 34 or 350 00 points to end at 14630 00 and Melisron TA MLSR was down 2 33 or 350 points to 14690
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 217 to 108 and 132 ended unchanged
Crude oil for May delivery was up 3 41 or 1 68 to 50 89 a barrel Elsewhere in commodities trading Brent oil for delivery in May rose 4 10 or 2 31 to hit 58 80 a barrel while the April Gold contract rose 0 58 or 6 90 to trade at 1203 90 a troy ounce
USD ILS was up 0 78 to 3 9575 while EUR ILS rose 0 32 to 4 3197
The US Dollar Index was up 0 30 at 97 37 |
TEVA | Israel stocks higher at close of trade TA 25 up 0 31 | Investing com Israel stocks were higher after the close on Wednesday as gains in the Oil Gas Banking and Financials sectors led shares higher
At the close in Tel Aviv the TA 25 rose 0 31 to hit a new all time high
The best performers of the session on the TA 25 were Gazit Globe TA GZT which rose 3 86 or 190 points to trade at 5110 at the close Meanwhile Israel Corp TA ILCO added 2 81 or 3900 points to end at 142500 and Isramco L TA ISRAp was up 2 57 or 1 8 points to 71 9 in late trade
The worst performers of the session were OPKO Health Inc TA OPK which fell 2 80 or 162 points to trade at 5632 at the close Perrigo TA PRGO declined 2 49 or 1650 points to end at 64670 and Teva TA TEVA was down 1 64 or 410 points to 24550
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 239 to 125 and 92 ended unchanged
Crude oil for May delivery was up 2 69 or 1 28 to 48 88 a barrel Elsewhere in commodities trading Brent oil for delivery in May rose 2 08 or 1 15 to hit 56 26 a barrel while the June Gold contract rose 1 34 or 15 90 to trade at 1199 10 a troy ounce
USD ILS was down 0 28 to 3 9678 while EUR ILS fell 0 06 to 4 2675
The US Dollar Index was down 0 16 at 98 53 |
TEVA | Israel stocks higher at close of trade TA 25 up 1 82 | Investing com Israel stocks were higher after the close on Sunday as gains in the Biomed Technology and Banking sectors led shares higher
At the close in Tel Aviv the TA 25 added 1 82 to hit a new all time high
The best performers of the session on the TA 25 were Perrigo TA PRGO which rose 22 02 or 14310 points to trade at 79300 at the close Meanwhile Teva TA TEVA added 3 78 or 960 points to end at 26360 and Kenon Holdings Ltd TA KEN was up 1 49 or 119 00 points to 8112 00 in late trade
The worst performers of the session were Strauss Group TA STRS which fell 2 97 or 190 points to trade at 6213 at the close Frutarom TA FRUT declined 2 62 or 410 points to end at 15260 and Gazit Globe TA GZT was down 2 29 or 118 points to 5032
Rising stocks outnumbered declining ones on the Tel Aviv Stock Exchange by 183 to 158 and 116 ended unchanged
Shares in Perrigo TA PRGO rose to all time highs rising 22 02 or 14310 to 79300 Shares in Teva TA TEVA rose to all time highs rising 3 78 or 960 to 26360
Crude oil for May delivery was up 1 79 or 0 91 to 51 70 a barrel Elsewhere in commodities trading Brent oil for delivery in May unchanged 0 00 or 0 00 to hit 58 95 a barrel while the June Gold contract rose 1 16 or 13 80 to trade at 1207 40 a troy ounce
USD ILS was up 0 74 to 3 9875 while EUR ILS rose 0 20 to 4 2280
The US Dollar Index was up 0 38 at 99 63 |
TEVA | Israel stocks lower at close of trade TA 25 down 0 62 | Investing com Israel stocks were lower after the close on Tuesday as losses in the Banking Real Estate and Biomed sectors led shares lower
At the close in Tel Aviv the TA 25 declined 0 62
The best performers of the session on the TA 25 were Elbit Systems TA ESLT which rose 2 01 or 590 points to trade at 29920 at the close Meanwhile Frutarom TA FRUT added 1 00 or 150 points to end at 15100 and Delek Drilling LP TA DEDRp was up 0 70 or 11 points to 1589 in late trade
The worst performers of the session were Osem TA OSEM which fell 2 96 or 249 points to trade at 8171 at the close Leumi TA LUMI declined 2 36 or 35 points to end at 1451 and Teva TA TEVA was down 1 96 or 520 points to 26070
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 224 to 137 and 96 ended unchanged
Shares in Elbit Systems TA ESLT rose to all time highs up 2 01 or 590 to 29920
Crude oil for May delivery was up 3 12 or 1 62 to 53 53 a barrel Elsewhere in commodities trading Brent oil for delivery in June rose 1 96 or 1 16 to hit 60 20 a barrel while the June Gold contract fell 0 58 or 6 90 to trade at 1192 40 a troy ounce
USD ILS was down 0 85 to 3 9607 while EUR ILS rose 0 05 to 4 2235
The US Dollar Index was down 0 82 at 98 92 |
TEVA | Israel stocks lower at close of trade TA 25 down 1 10 | Investing com Israel stocks were lower after the close on Sunday as losses in the Biomed Technology and Real Estate sectors led shares lower
At the close in Tel Aviv the TA 25 lost 1 10
The best performers of the session on the TA 25 were Frutarom TA FRUT which rose 1 85 or 270 points to trade at 14890 at the close Meanwhile Elbit Systems TA ESLT added 1 77 or 550 points to end at 31610 and Delek Drilling LP TA DEDRp was up 0 98 or 16 points to 1646 in late trade
The worst performers of the session were Teva TA TEVA which fell 5 06 or 1330 points to trade at 24950 at the close OPKO Health Inc TA OPK declined 3 60 or 209 points to end at 5595 and Perrigo TA PRGO was down 2 88 or 2300 points to 77620
Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange by 214 to 122 and 121 ended unchanged
Shares in Elbit Systems TA ESLT rose to all time highs rising 1 77 or 550 to 31610
Crude oil for May delivery was down 1 27 or 0 72 to 55 99 a barrel Elsewhere in commodities trading Brent oil for delivery in June fell 0 42 or 0 27 to hit 63 71 a barrel while the June Gold contract rose 0 48 or 5 80 to trade at 1203 80 a troy ounce
USD ILS was down 0 30 to 3 9170 while EUR ILS rose 0 21 to 4 2310
The US Dollar Index was down 0 27 at 97 62 |
XOM | 4 ETFs For The Russian Oil Boom RSX IXC NORW | It s fair to say Russia is already in the midst of an oil boom While the country s April output slipped 0 3 to 10 33 million barrels per day the lowest level of 2012 average daily production this year has been 10 36 million barrels per day Not only is that a post Soviet era high it s more than 10 million barrels per day OPEC member Saudi Arabia the world s largest oil exporter says it s currently pumping In the future Russia has the potential to pump even more crude A lot more The country s Arctic region which includes the oil rich Kara Sea is one of the world s last great untapped oil frontiers By some estimates the Kara Sea holds up to 37 billion barrels of reserves That s why BP NYSE BP was dogged in its efforts to hammer out a deal with OAO Rosneft Russia s largest oil company last year It s why Exxon Mobil NYSE XOM was so willing to take BP s place when the British oil giant s Rosneft deal collapsed Exxon and Rosneft could spend 500 billion or more exploring the Kara Sea And those lush reserves are why European majors Statoil NYSE STO and Eni SpA NYSE E have also signed deals with Rosneft Still this is Russia we re talking about Rampant corruption and a hostile political environment can make for some treacherous seas for Western firms when it comes to Russia s energy industry which accounts for half of the Kremlin s revenue These ETFs could prove useful for investors looking to avoid single stock exposure to Russia s oil story Market Vectors Russia ETF NYSE RSX At the moment the chart for RSX the oldest largest and most liquid Russia ETF is a mess Same goes for the rival iShares MSCI Russia Capped Index Fund NYSE ERUS a suitable replacement for RSX In the case of RSX the ETF has violated two critical support areas in the past five weeks and now looks poised to retest its October 2011 lows around 23 Russian energy giants Lukoil Gazprom and Rosneft combine for over 21 of RSX s weight and the energy sector overall receives a 39 allocation in RSX Those with a taste for risk can try the Market Vectors Russia Small Cap ETF NYSE RSXJ which has a 24 4 allocation to energy names iShares S P Global Energy Index Fund NYSE IXC Unfortunately the iShares S P Global Energy Index Fund doesn t offer a better technical outlook than RSX or ERUS at the moment Following a violation of support at 38 it looks like another 5 could easily be shaved off IXC With that in mind it s critical to remember the Russian Arctic oil theme is a long term bet and IXC is home to plenty of blue chip oil names that have already signed Russian pacts or want to at some point Exxon Eni and Statoil combine for over 18 of IXC s weight Royal Dutch Shell NYSE RDS A BP and Total NYSE TOT Europe s three largest oil companies combine for another 17 75 It s hard to imagine that at least two of those three European majors don t make legitimate efforts to get involved with the Russian Arctic BP and Shell have had their struggles in Russia but the reserves are too compelling to ignore Global X FTSE Norway 30 ETF NYSE NORW The original Norway ETF and a valid play on high oil prices in its own right NORW is also a great way of gaining tempered exposure to Russia s oil boom Statoil accounts for 19 6 of NORW s weight and that company signed an agreement with Rosneft last weekend that could see the two firms explore areas with 2 billion metric tons of oil and 1 8 trillion cubic meters of gas Future investment for these areas in the Barents Sea the Perseyevsky and three fields in the Sea of Okhotsk could reach up to 40 billion according to Reuters Global X China Energy ETF NYSE CHIE The Global X China Energy ETF is the wild card play on this list China is an important destination for Russian crude exports and Chinese oil majors have not been shy about making international asset acquisitions Whether or not the already cozy oil relationship between the two emerging markets powers translates into China s entry into the Russian Arctic remains to be seen If it does CHIE is poised to benefit over the long haul as Cnooc NYSE CEO PetroChina NYSE PTR and Sinopec NYSE SNP combine for about 20 of CHIE s weight By The ETF Professor |
XOM | Falling Dollar Saves The Day | We can only wonder when the falling U S Dollar Index will no longer come to the rescue of the major stock indexes Nearly every trading day when the major stock indexes are plunging lower the U S Dollar Index will decline intra day and help almost every stock and commodity to inflate off of the morning lows Earlier today the U S Dollar Index futures DX M2 were trading as high as 80 07 per contract however the U S Dollar Index futures are now trading around the 79 85 area When the dollar drops the market pops that is all traders need to remember at this time Some leading equities that have rallied off of the morning lows when the dollar declined were Deere Company NYSE DE Exxon Mobil Corporation NYSE XOM Amazon com Inc NASDAQ AMZN and the SPDR Dow Jones Industrial Average ETF NYSEARCA DIA As you can see nearly every stock and major stock index will react positively to the falling U S Dollar |
XOM | 12 Most Powerful Dividend Stocks | Dividend investors are looking for stocks with great dividend payments One criterion is the history of consecutive rising dividends Others are fundamentals like margins debt ratios or even growth rates I like to discover those dividend stocks with the highest fire power in terms of dividend payments First the stock should have a consecutive dividend growth of at least 25 years Second the payout ratio should below 30 percent and the debt to equity ratio under 0 3 Stocks with such ratios have enough space to raise dividends when earnings are getting weak Twelve companies fulfilled these criteria of which nine have a current buy or better rating AFLAC Incorporated NYSE AFL has a market capitalization of 18 63 billion The company employs 8 562 people generates revenues of 22 171 00 million and has a net income of 1 964 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 6 761 00 million Because of these figures the EBITDA margin is 30 49 percent operating margin 13 50 percent and the net profit margin finally 8 86 percent Financial Analysis The total debt representing 2 81 percent of the company s assets and the total debt in relation to the equity amounts to 24 32 percent Due to the financial situation a return on equity of 15 99 percent was realized Twelve trailing months earnings per share reached a value of 5 03 Last fiscal year the company paid 1 23 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 7 92 P S ratio 0 85 and P B ratio 1 38 Dividend Yield 3 29 percent The beta ratio is 1 83 Walgreen Company NYSE WAG has a market capitalization of 27 00 billion The company employs 176 000 people generates revenues of 72 184 00 million and has a net income of 2 714 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 5 393 00 million Because of these figures the EBITDA margin is 7 47 percent operating margin 6 05 percent and the net profit margin finally 3 76 percent Financial Analysis The total debt representing 8 77 percent of the company s assets and the total debt in relation to the equity amounts to 16 23 percent Due to the financial situation a return on equity of 18 56 percent was realized Twelve trailing months earnings per share reached a value of 2 93 Last fiscal year the company paid 0 75 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 10 68 P S ratio 0 37 and P B ratio 1 87 Dividend Yield 2 88 percent The beta ratio is 0 99 Exxon Mobil NYSE XOM has a market capitalization of 383 63 billion The company employs 82 100 people generates revenues of 486 429 00 million and has a net income of 42 206 00 million The firm s earnings before interest taxes depreciation and amortization EBITDA amounts to 89 087 00 million Because of these figures the EBITDA margin is 18 31 percent operating margin 15 06 percent and the net profit margin finally 8 68 percent Financial Analysis The total debt representing 5 15 percent of the company s assets and the total debt in relation to the equity amounts to 11 03 percent Due to the financial situation a return on equity of 27 26 percent was realized Twelve trailing months earnings per share reached a value of 8 28 Last fiscal year the company paid 1 85 in form of dividends to shareholders Market Valuation Here are the price ratios of the company The P E ratio is 9 91 P S ratio 0 79 and P B ratio 2 51 Dividend Yield 2 78 percent The beta ratio is 0 49 Take a closer look at the full table of the most powerful Dividend Champions The average price to earnings ratio P E ratio amounts to 14 41 and forward P E ratio is 13 03 The dividend yield has a value of 1 96 percent Price to book ratio is 2 81 and price to sales ratio 1 57 The operating margin amounts to 17 02 percent and the beta ratio is 0 98 Here is the full table with some fundamentals TTM Related stock ticker symbols CVX AFL WAG XOM CB RLI GWW GRC RAVN CLC DCI HP |
XOM | Halliburton Is Slightly Undervalued | We have already presented our pricing NYSE HAL Also we have been routinely reporting on similar models for COP and XOM All these models were based on our that the evolution of any share price can be quantitatively represented as a weighted sum or difference of two CPI PPI components This pricing concept was developed by predicting share prices for a few energy companies Essentially we were trying to use the core CPI as an energy independent dynamic reference to the headline CPI which includes energy and in turn is related to oil price and thus the prices of energy companies Therefore we assumed that the difference between these two CPIs might be manifested in the energy pricing power relative to all other goods and services At the later stages the set of companies was extended to the S P 500 list as a whole and the model obtained new CPIs time lags and a linear trend term ConocoPhillips and Exxon Mobil are the biggest energy companies and they have demonstrated almost the same sensitivity to the difference between the core CC and headline CPI C i e their pricing models were almost identical Halliburton s share price was also modeled and showed a different sensitivity to the change in the defining CPIs We made a tentative conclusion that COP and XOM might have a larger return to the investor considering energy stocks Originally we have demonstrated that the time history of a share price p t for example HAL could be accurately approximated by a linear function of the difference between the core CPI and the headline CPI in the United States At the initial stage of our research this difference was found to be the best to predict share prices of energy related companies Mathematically a share price HAL t we use a monthly closing price adjusted for dividends and splits can be approximated by a linear function of the lagged difference between the core and headline CPI HAL t 42 3 5dCPI t t1 1 where dCPI t t1 CC t t1 C t t1 t is the elapsed time and t1 0 year is the time delay between the share and the CPI change In the original model the CPI difference had no time lag behind the share price t1 0 and we covered the period between 1999 and 2009 The upper panel of Figure 1 shows the original model performance between July 2003 and February 2012 with the standard model error of 4 51 Since 2009 the original model has been routinely validated by new data Overall it has demonstrated a good predictive power but we have also revealed some short term deviations from observed prices It was instructive to improve its performance and using the experience with non energy companies to extend the set of defining CPIs We have tested several pricing models for Halliburton with the same CPI and PPI components which were tested for ConocoPhillips and ExxonMobil The extended set of defining indices includes the core and headline CPI the consumer price index of energy E and the producer price index of crude petroleum OIL together with the overall PPI Thus we tested models similar to 1 using two more differences for the period between 2001 and 2011 For this article we have modeled the period between July 2003 and February 2012 with the same coefficients which were obtained and reported in 2011 HAL t 30 0 30 CC E sterr 4 85 2 HAL t 25 0 13 OIL PPI sterr 9 34 3 In other words all coefficients in 1 3 were estimated by the least squares for the period between January 2001 and July 2011 and then used to describe the period through February 2012 The zero time lag was retained in the model similar to that in the ConocoPhillips and ExxonMobil models where we found no time delay between the share price and defining differences Unlike for COP both standard model errors are larger than for the original model i e the original model based on the headline and core CPI is the best among the three studied models The upper panels in Figures 1 through 3 compare these three HAL models with zero time lags and no time trend The modeling period is extended by seven months and the most important difference from the July 2011 is that the large excursion in the observed price has been well described by the dCPI According to the best model the current price is slightly undervalued At the same time model 3 based on the producer price indices is the worst sterr 9 34 This may mean that Halliburton does not depend much on the producer prices Interestingly the change in oil price does accurately describe the period of the financial crisis However the model fails to predict slow changes in the share price Model 3 has failed to predict the recent price peak but this deviation was only a transient one the observed price is back to the predicted level Another possibility to improve the overall agreement between the observed and predicted prices is to allow for different coefficients for the defining CPIs time lags and linear trend The latter is an obvious component since we expect all share prices to rise with real economic growth There models below have been estimated using these new features which have brought visible improvements as expressed by the standard model errors for the same period HAL t 3 48C t 4 97CC t 1 5 81 t 2000 249 24 sterr 4 16 4 HAL t 2 08CC t 2 0 34E t 7 61 t 2000 261 93 sterr 3 55 5 HAL t 0 96PPI t 0 028OIL t 7 3 33 t 2000 73 21 sterr 4 13 6 Model 5 provides the best explanation of the variability in the HAL share price since July 2003 using a time lead of only two months for the core CPI The CPI of energy evolves in sync with the share The CC slope is negative while the E slope is positive and thus we have the difference between the CPIs The overall agreement between the observed and predicted prices is very good for the past nine years The PPI model 6 is much better sterr 4 13 instead of 9 35 with time leads OIL leads the share price by seven months than model 3 without lags Instructively that the OIL slope is very small the HAL share price does not depend on oil directly but rather through the consumer price of energy as model 5 suggests The dCPI model 4 is also better than 1 but has lost its position Finally Figures 1 through 3 clearly indicate that the closing price in February 2012 was slightly undervalued and one can expect that the current deviation from the predicted price will disappear in the near future The observed price may rise to 40 42 per share in March May 2012 The previous burst in price observed between February and September 2011 has proved that the price quickly returns to the predicted level In the long run down to 30 per barrel will likely judging by model 5 result in a proportional increase in HAL s shares Figure 1 The observed HAL price and that predicted from the core and headline CPI Upper panel original model 1 lower panel model 4 with time delays and individual weights Figure 2 The observed HAL price and that predicted from the energy index E and the headline CPI Upper panel model 2 lower panel model 5 with time delays and individual weights Figure 3 The observed HAL price and that predicted from the PPI of oil OIL and the overall PPI Upper panel model 3 lower panel model 6 with time delays and individual weights |
XOM | Why Peabody Energy Is Highly Undervalued | In this article we model the evolution of Peabody Energy NYSE BTU share price since 2003 and evaluate its current level relative to that predicted by the model The main finding can be formulated as follows the current price is much lower than that predicted by the model At the same time the same model has accurately predicted the rally between 2003 and 2007 the sharp fall in 2008 and the following recovery up to the third quarter of 2011 The same effect is observed for many energy companies as we have already reported on Seeking Alpha For example Newfield Exploration NFX and GEOI demonstrate high amplitude deviations from their relevant predicted prices but with opposite signs Thus we have been measuring strikingly abnormal deviations in share prices of many energy related companies since the middle of 2011 This observation needs careful analysis and investors attention Our pricing concept is very simple and we explain it here step by step First we put forward a working hypothesis that a share price of an energy company can be driven by the change in the overall energy price or its components Obviously energy prices do not exist in vacuum they affect and are affected by other goods and services Therefore we actually assume that the share price is driven by the difference between the energy price and some energy independent price both can be presented as indices In its simplest form the model is based on the difference between the headline CPI C and the core CPI CC without any time lag between these indices and the share price The headline CPI includes all kinds of energy and thus provides the broadest proxy to the energy price index The core CPI excludes energy and food and thus represents the energy independent and dynamic reference Historically these two indices were used in our for ConocoPhillips COP and Exxon Mobil XOM and are retained as a benchmark since then The best ever model was obtained for COP Figure 1 depicts the observed and modeled COP prices in order to demonstrate the predictive power of the pricing concept The agreement between curves is excellent One can see that all deviations of the actual price from the predicted one are only short term and the predicted curve might be considered as a fundamental one In other words the actual price gravitates to the predicted one Quantitatively we have estimated the following relationships to minimize the model error between 1998 and 2012 COP t 72 3 5 35 CC t C t 1 where COP t is the share price in U S dollars at time t In any case both curves are close to each other throughout the whole period and there is deviation growing since 2011 Figure 1 Historic monthly closing prices for COP black line and the scaled difference between the core CPI and the headline CPI red line In Figure 2 we present a similar model for BTU The best fit relationship is as follows BTU t 59 5 5 55 CC t C t 2 The overall agreement is also excellent with the predicted and observed prices very close near the 2008 peak and the 2009 bottom The recovery since 2009 has been also described accurately to the peak value in April 2011 And then the prices started to deviate which the predicted price falling at a much slower pace In this situation one may consider the currently observed price as an highly undervalued one between 20 and 25 Figure 2 Historic monthly closing prices for BTU black line and the scaled difference between the core CPI and the headline CPI red line The original model is very crude Both CPIs depend on many other goods and services what introduces high measurement noise in the model Also both CPIs have the same weight 1 0 and cannot lead or lag behind the modeled price or each other Apparently it can be some non zero lag between the change in energy price and in prices of energy companies Therefore we extended the model and described the evolution of a share price as a weighted sum of two individual consumer price indices or PPIs selected from a large set of CPIs borrowed from the Bureau of Labor Statistics We allow both defining CPIs PPIs lead the modeled share price Additionally we introduced a linear time trend on top of the intercept So we continue presenting Peabody Energy Corporation which is engaged This is not an oil gas company and we do not expect it directly depend on oil price As for many already presented companies we have tested two principal pairs of CPIs C and CC CC and the index of energy E as well as the pair the PPI and the producer price index of crude oil OIL The best fit as defined by standard error model is obtained with the pair CC and E BTU t 5 21C t 5 09CC t 0 0 45 t 2000 40 84 sterr 7 85 3 BTU t 1 34CC t 9 0 52E t 6 57 t 2000 228 58 sterr 7 02 4 BTU t 1 46PPI t 0 0 0346OIL t 6 4 77 t 2000 123 01 sterr 7 86 5 where BTU t is the share price in U S dollars the core CPI leads the price by 9 months We allowed both time leads in 3 through 5 to vary between 0 and 12 months As one can expect the index of energy drives the price up Surprisingly the core CPI also affects the price positively and the long term time trend in both defining CPIs is compensated by the negative time trend Figures 3 through 5 depict the observed and predicted monthly prices The best model shows even a better overall agreement than the original model with the standard error of 7 02 between July 2003 and February 2012 As we discussed above the model residual has been growing since the second half of 2011 Currently the error is 23 This is an extremely high residual relative to the fundamental price We believe that the current excursion is just a short term deviation Therefore the BTU price is highly undervalued The reader may also suggest that the model has failed on BTU We cannot exclude this explanation but then why the concept works for the biggest energy companies and has also been working relatively well before August 2011 Figure 3 The observed and predicted monthly closing prices for BTU between July 2003 and March 2012 The model is based on C and CC Figure 4 The observed and predicted monthly closing prices for BTU between July 2003 and March 2012 The model is based on CC and E Figure 5 The observed and predicted monthly closing prices for BTU between July 2003 and March 2012 The model is based on PPI and OIL |
XOM | Gold Does Nothing | Gold does nothing and as Today the world s gold stock is about 170 000 metric tons If all of this gold were melded together it would form a cube of about 68 feet per side Picture it fitting comfortably within a baseball infield At 1 750 per ounce gold s price as I write this its value would be 9 6 trillion Call this cube pile A Let s now create a pile B costing an equal amount For that we could buy all U S cropland 400 million acres with output of about 200 billion annually plus 16 Exxon Mobils the world s most profitable company one earning more than 40 billion annually After these purchases we would have about 1 trillion left over for walking around money no sense feeling strapped after this buying binge Can you imagine an investor with 9 6 trillion selecting pile A over pile B Beyond the staggering valuation given the existing stock of gold current prices make today s annual production of gold command about 160 billion Buyers whether jewelry and industrial users frightened individuals or speculators must continually absorb this additional supply to merely maintain an equilibrium at present prices A century from now the 400 million acres of farmland will have produced staggering amounts of corn wheat cotton and other crops and will continue to produce that valuable bounty whatever the currency may be Exxon Mobil will probably have delivered trillions of dollars in dividends to its owners and will also hold assets worth many more trillions and remember you get 16 Exxons The 170 000 tons of gold will be unchanged in size and still incapable of producing anything You can fondle the cube but it will not respond Admittedly when people a century from now are fearful it s likely many will still rush to gold I m confident however that the 9 6 trillion current valuation of pile A will compound over the century at a rate far inferior to that achieved by pile B Buffett misses the point on gold something he doesn t often do in economic matters Gold is valuable because it is beautiful and it can t be used for much aside from beauty Gold can only be used for things that are not necessary with a few small exceptions and is thus a luxury item Wait doesn t Buffett own a scad of jewelry stores and he doesn t get this Jewelry is not a necessity but something to please those we love with something of beauty Beyond that gold is divisible easily melted down and doesn t weigh a lot relative to its value It is an ideal store of value Gold does nothing and that s good We need some things in this hectic world that do nothing What is the value of doing nothing Quietness Pause Repose Reflection Measurement Standard Fiat currencies change every day and the price of gold relative to chose currencies changes similarly Gold doesn t change it s like God in that way We don t measure it Because it doesn t change it measures us because we do change I m not a gold bug I own no gold aside from my small wedding ring andfew other odd bits of jewelry But there is a lot of value to a pretty commodity that has little usefulness aside from beauty Think of silver for a moment Whether in electronics or photography it has significant industrial value Though both are used as currencies and stores of value silver responds more to the economy and gold just sits there Maybe that s what Robert Zoellick meant Unlike fiat currencies which are manipulated by finance ministries and central banks gold can t easily be manipulated Gold is the measuring rod of economics whether we like it or not That brings me to and Gold reacts to real interest rates As real interest rates rise gold falls and vice versa Think of it this way when real interest rates go down there is less loss to holding gold because Gold can t easily be repressed it is far less susceptible to government manipulation because it is something real and tangible far harder to manipulate and I think that would be a good idea but I think none of the large emerging markets except Russia would dare or even want to do it Statists like fiat currency because it gives them one more lever of control over those that they rule Gold backed currencies are for limited governments and in general most emerging market governments don t think that way With Mr Buffett I will agree I would rather have the businesses and the farmland pile A They will likely be more valuable in the long run than the gold But I might take the 1 trillion of walking around money and use it to buy 10 of the cube of gold pile B leaving me with a piddling 40 billion of walking around money I might look at the gold and think how beautiful it is Fondle it Nah Just admire how unchangeable it is Businesses change technologies obsolete whole industries as they create new ones Companies can be mismanaged or outcompeted Very few last longer than a generation they change a lot and require constant management Farmland depletes unless you take the time to maintain it and cheap potash supplies are getting scarce Besides perhaps one of my great grandchildren will note 100 years from now how the global economy has a hard time with the population shrinking globally At that point with less pressure to increase yields farmland might not be as valuable I m not predicting this it s only possible I m only saying that arable land another really scarce resource in the world could in some scenarios become less valuable in real terms The real value of the gold would be as a hedge against governments and central banks that financially repress their populations by holding interest rates making it difficult for savers to preserve value And that s what gold does best preserving value as it sits there beautiful doing nothing So when governments and central banks debase their currencies as in the 70s the 2000s and create conditions where real interest rates are negative gold flies in terms of the debased currencies and then crashes back down if you get a Paul Volcker type and policy normalizes after a lot of pain which this generation seems unwilling to take Until it does take the pain there will be the tendency for gold to go higher and more so if real interest rates remain negative So sit back and and watch the gold measure the policies of governments central banks even us Gold does nothing except sit there and look beautiful and that s what makes it so valuable |
XOM | Modeling Exxon Mobil s Share Price | In this post we describe the for Exxon Mobil s XOM share as based on our concept of stock dependence on consumer price index Unlike in the which included only the core and headline CPI here we use a set of 92 individual consumer price indices to select the best two Exxon Mobil provides an example of a company with share price leading defining components of the CPI Our model is seeking two CPI components from a large number of pre selected ones which minimize the difference between observed monthly closing price adjusted for dividends and splits and predicted prices for the period between July 2003 and January 2012 A two component 2 C model also includes free term constant and linear time term which compensates well know linear time trends between various CPI components The best fit 2 C model for XOM t is as follows XOM t 1 70OFH t 3 2 98RRM t 10 22 73 t 2000 581 17 where OFH in the index other food at home lagging the stock price by 3 months RRM is the index of recreation reading materials leading by 10 months t 2000 is the elapsed time Figure 1 depicts the evolution of both CPIs Figure 2 depicts the observed and predicted prices the latter shifted three months ahead for synchronization i e the predicted curve leads the observed price by 3 months The model residual error shown in Figure 3 has standard deviation of 4 41 for the period between July 2003 and January 2012 The estimated model shows that Exxon Mobil s share will be growing in 2012Q1 Figure 1 The evolution of CPIs Figure 2 Observed and predicted XOM share prices Figure 3 The model error |
WFC | Everyone is guessing about coronavirus economic impacts say experts | By Ross Kerber and Heather Timmons
BOSTON WASHINGTON Reuters The coronavirus that spread from a seafood market in Wuhan China to infect tens of thousands has shuttered businesses grounded flights and killed over 1 000 people so far mostly in China
As the world s second largest economy struggles to get back to work after an extended Lunar New Year holiday analysts and bankers have been revisiting their estimates of the economic impact of the virus
Most believe China faces a short but sharper economic shock than originally thought one that will be felt around the world Expectations of how harsh the impact will be vary widely however Health professionals and economists say opaque Chinese data and lack of precedent hinder clear estimates
China s gross domestic product growth in the first quarter could fall to as low as 4 Nicholas R Lardy senior fellow at the Peterson Institute for International Economics estimated on Tuesday That compares to Chinese government estimates of 6 annual growth before the virus emerged
However if the number of confirmed new coronavirus cases continues to decline then adverse effect on annual growth will be much smaller he added
Analysts from S P meanwhile estimated Tuesday that the virus could lower China s GDP growth to 5 0 this year with a peak effect in the first quarter before a rebound begins in the third quarter
The numbers are very imperfect and that s the basic reason behind the wide range of estimates said Lardy Everyone is guessing
Many economists and analysts are looking closely at the historical precedent from the SARS virus spread in 2003 But when SARS struck China s contribution to global GDP was just 4 compared with 15 in 2017 and Chinese companies were much less integrated into global supply chains
Any forecasts are also complicated by the fact that Beijing has a history of closely managing China s economy to hit specific targets and there were already doubts whether China s economy could reach 6 growth this year
Further much remains unknown about the coronavirus including its exact incubation period and the effectiveness of China s quarantine measures Catherine Troisi a University of Texas public health specialist said Tuesday during a National Association for Business Economics call on the virus s economic impact
The authoritarian nature of China s government could also hinder the response by making officials afraid to report problems she said adding the latest update of around 43 000 infections is likely an undercount
It s a culture that shoots the messenger Because of the bureaucracy local officials are afraid to say anything she said
Headwinds from the virus could knock 40 to 50 basis points off expected U S economic growth of up to 2 4 per quarter for 2020 said Constance Hunter KPMG Chief Economist and president of NABE also speaking during the call
Hunter however cautioned that could change if infection and death rates spike up The virus could shave a percentage point off China s revised growth rate of 5 for the first half of the year she said
Jay Bryson acting Chief Economist for Wells Fargo NYSE WFC Co said on the call that while some U S industries including air travel and electronics could be affected by a Chinese economic slowdown stemming from the epidemic trade with China still accounts for a small part of the overall economy
We wouldn t say this is going to bring the U S economy to its knees he said Americans are pretty resilient when it comes to consumer spending especially on services
Supply chain disruptions would have to occur for a while to have a meaningful impact he said
It is unclear whether the coronavirus will prove more or less deadly than other similar outbreaks Troisi added I m not a fortune teller she said |
XOM | XOM Remains Bearish | Exxon Mobil XOM is trading in what appears to be a confirmed bearish Rising Wedge pattern with a Head and Shoulders pattern shaping its apex Its Head and Shoulders pattern confirms at 82 and a level that would take XOM below that possible Ascending Trend Channel for a target of 77 It would be just that pattern s potential confirmation though that would serve to reinforce the Rising Wedge s confirmation in the fact that it would breach the aforementioned Ascending Trend Channel that XOM could be trading in One reason to think XOM is not trading in an Ascending Trend Channel but a beautiful 5 touch Rising Wedge is shown in the weekly chart that is showing the strong possibility of an extreme Double Top pattern that confirms on the Rising Wedge s true target of about 65 Relative to that Double Top it really is too extreme to pay too much attention to unless it confirms but should XOM drop down and through 65 its target is about 45 Levels to watch in the near term around XOM s H S pattern are at 84 34 and 85 02 on the downside 85 98 and 86 75 on the upside All in all though XOM remains bearish and something that suggests XOM may favor those former levels to signal a decline could be ahead |
WFC | Comerica taps Wells Fargo exec to head wealth management unit | Comerica CMA 1 4 names Greg Carr as new head of its wealth management unit effective March 2 2020
He ll succeed Michael J Aust executive vice president of the Retail Bank who announced his retirement on Jan 28 and has been serving as interim leader of wealth management
Carr who will be executive vice president wealth management joins Comerica from Wells Fargo Private Bank where he served as senior managing director for the Southeast region |
WFC | Wells Fargo revamp may assure regulators of material change analysts say | Wells Fargo s WFC 0 2 move yesterday to redraw its organizational chart by dividing three units into five and adding a new sales practices oversight and management role may indicate to regulators that WFC is starting to more materially change the culture of the bank writes Keefe Bruyette Woods analyst Brian Kleinhanzl in a note
He adds that the changes will make WFC look more like its money center peers
The bank is also creating a new strategy digital platform innovation group which will report directly to CEO Charlie Scharf
None of the reporting moves change the fundamentals at the bank and there is still a lot of wood to chop in order for WFC to improve efficiency ratios longer term said Kleinhanzl who has a Market Perform rating on the stock
Each of the company s five new divisions will report to new chief operating officer Scott Powell who also heads the sales practice oversight and management role
Breaking down the company into more manageable units is positive for the bank and the changes are likely to prove satisfying to the government writes Odeon analyst Dick Bove who rates WFC a Sell in a note
But with the five business units reporting to Powell Scharf may not be fully integrated into the day to day turnaround of the company which is not positive Bove wrote
See WFC s key stat comparisons vs its peers |
WFC | Wells Fargo ends forced arbitration for sexual harassment claims | By Imani Moise Reuters Wells Fargo NYSE WFC Co on Wednesday ended its forced arbitration policy for employee sexual harassment claims opening the lender to potential lawsuits in the future The San Francisco based bank made the decision following a shareholder proposal from Clean Yield Asset Management which has since been withdrawn asking for a public analysis of mandatory arbitration s impact on sexual assault claims within the company Wells Fargo has zero tolerance for sexual harassment David Galloreese head of human resources at Wells Fargo wrote in an article posted on the company s internal and external websites The treatment of sexual harassment claims has become an increasingly prominent issue across industries The new policy applies to all future harassment claims Since 2015 Wells Fargo has required employees to sign arbitration agreements when they are hired to that require them to settle workplace disputes privately not in court In December a representative from Clean Yield Asset Management an impact investing firm with a roughly 2 000 stake in Wells Fargo submitted a proposal asking the board to conduct a review of mandatory arbitration s effect on sexual harassment claims and make the report public
Wells Fargo has raised the bar for financial institutions aiming to root out sexual harassment in the workplace said Clean Yield s Director of Shareholder Advocacy Molly Betournay We urge other companies particularly other big banks to follow suit |
XOM | Energy Retreats Early And Here Is Why | This morning spot oil and many of the leading energy stocks are pulling back As you know oil has been surging higher since mid December 2011 Yesterday oil spiked higher after a false report cited a fire in a Saudi Arabian oil field While geopolitical events and weather can effect energy prices it is usually the weaker U S Dollar that will cause energy and most other commodities to rise Today spot crude is declining lower by 1 38 to 107 36 a barrel Please note the U S Dollar Index futures DX H2 are trading higher 0 64 cent to 79 48 per contract Should the U S Dollar Index decline throughout the session one could expect oil and the energy stocks to catch a bid higher off of the morning lows Some leading stocks and ETF s that are coming under early selling pressure include United States Oil Fund NYSEARCA USO United States Gasoline Fund NYSEARCA UGA ConocoPhillips NYSE COP and Exxon Mobil Corp NYSE XOM These stocks should see intra day bounce opportunities as the U S Dollar Index rarely holds up throughout the entire trading day |
XOM | Exxon Mobil and EUR USD trading signals today | Binary trading which focused on stocks yesterday was probably concerned with the fact that US markets continued to head downward Unless traders expected such a downturn earning based on profitable binary options trading on a day like yesterday would have proven difficult as no real trend was in place for stock indices The reason US stocks headed downward was due primarily to the fact that the Chinese lowered growth expectations for the economy The expectation of a 7 5 would seems simply amazing for nearly any other economy in the world but for the Chinese this is the lowest growth target since 2004 and is thus a sign of waning Chinese economic strength The concern is that exports will slow and as a result the growth engine of China will grind the entire global economy to a halt However binary options traders need not be very concerned as there is no major news expected today This should allow trading to remain focused on technical indicators and trading signals As such there are a few assets we are watching closely these days With the EUR USD virtually unchanged over the last 2 days we believe that it is time to utilize smart strategies with binary options As such we recommend trading range options today as the currency pair is in a range seen earlier last month With range options you as a binary options trader are taking a much higher risk trade Truth be told the brokers do a nice job of pricing these range options aggressively and thus allow traders to earn 300 600 on their investment But take into consideration the actual boundaries of the trade that your broker prices in for the range option Each broker can provide slightly different boundaries and if those boundaries look to easy to reach in the time period strike of the option move on to a different opportunity The whole idea of range options is to make money in the market but still to take a calculated risk See the graph below those are the boundaries in the market So if the broker is providing significantly different boundaries move on Exxon Mobil XOM is another possible trade of interest to binary options traders We have been following this stock because of its reliance to higher prices of Oil But with the stock rising yesterday despite falling oil price we are optimistic that the stock can push higher today past the 87 5 resistance Any break of this level will allow binary options traders to take an ABOVE option Remember that as with any stock trade you make with binary options you validate the break prior to taking the option Just put RSI and MACD on the graph and make sure that they are heading higher and not the other way around IF they are signaling a reversal do not use this trading signal and move on to another opportunity EUR USD 6 2 2012 title EUR USD 6 2 2012 width 1008 height 547 |
XOM | Exxon Mobil is on a Rise | Exxon Mobil NYSE XOM is one of the biggest companies Its share price influences not only other oil companies but also the S P 500 index itself Here we introduce a simple share pricing model for Exxon Mobil which foresees its price at a three months horizon In a way this allows to predict the market evolution and to beat the Efficient Market Hypothesis The model is based on our concept of stock dependence on consumer price index The intuition is simple and clear the evolution of a share price is inherently related some goods and services and thus their relative prices For example one cannot deny that crude oil price has to affect share prices of oil companies We have proved that such a link exists for and formulated an empirical model For XOM we use a set of 92 individual consumer price indices to select the best two CPIs to describe the evolution of the share price We have found several years ago that Exxon Mobil provides an example of a company with its share price leading defining CPI components Our model is seeking two CPI components from a large number of pre selected ones which minimize the difference between observed monthly closing price adjusted for dividends and splits and predicted prices for the period between July 2003 and February 2012 Our two component model also includes a free term constant and a linear time term which compensates well know linear time trends between various CPI components The best fit model is as follows XOM t 1 70OFH t 3 2 98RRM t 10 22 73 t 1990 581 17 February 2012 where OFH in the index other food at home lagging the stock price by 3 months RRM is the index of recreation reading materials leading by 10 months t 2000 is the elapsed time Figure 1 depicts the evolution of both CPIs In the beginning of February 2012 this model predicted the monthly closing price of 89 0 i e a 10 increase from January s closing price Figure 2 depicts the observed and predicted prices the latter shifted three months ahead for synchronization i e the predicted curve leads the observed price by 3 months The actual monthly closing price in February was 86 5 i e 3 5 above that in January Therefore the model has correctly predicted the move in the price The model residual error is shown in Figure 3 It has standard deviation of 3 72 for the period between July 2003 and February 2012 The estimated model shows that Exxon Mobil s share will be growing in 2012Q1 to the level of 90 This is in line with the increasing crude price Figure 1 The evolution of defining CPIs Figure 2 Observed and predicted XOM share prices Figure 3 The model error sderr 3 72 |
TEVA | Mesoblast Tightening Focus To Extend Runway | Mesoblast Ltd NASDAQ MESO cut its cash burn by 15 in FY16 to US 90m and guided for a further 25 reduction in FY17 which will give it headroom to fund the Phase III heart failure HF trial that Teva relinquished in June It has 12 months of cash runway plus a US 90m equity finance facility which will give a further 12 months runway It expects to report interim analyses of three Phase III programmes by end Q117 including the HF trial We lower our valuation ahead of these potential catalysts to A 1 5bn from A 1 8bn A 3 84 per share from A 4 67 due to lower forecast uptake in HF and removal of two low priority tier two programmes
Cutting costs to extend cash runway
Mesoblast cut its cash burn in FY16 year end 30 June by 15 to US 89 7m Further cost cutting measures are expected to reduce burn by up to US 25m in the current year although this will be partly offset by expenditure on the Phase III HF trial that was previously funded by Teva Pharma Industries Ltd NYSE TEVA Cash at 30 June was US 80 9m and the company has put in place a US 90m equity funding facility
To read the entire report Please click on the pdf File Below |
TEVA | Teva Reports Positive Phase III Tardive Dyskinesia Data | Teva Pharmaceutical Industries Ltd NYSE TEVA announced encouraging top line data from the second phase III study AIM TD on SD 809 deutetrabenazine which is being evaluated for the treatment of tardive dyskinesia TD The randomized double blinded placebo controlled parallel group fixed dose study was conducted in patients with moderate to severe TD Results revealed that all three doses 12 mg day 24 mg day and 36 mg day of SD 809 demonstrated statistically significant improvement in Abnormal Involuntary Movement Scale scores the primary endpoint compared to placebo Moreover the 24 mg and 36 mg dose groups showed a significant change from baseline based on the modified intent to treat population at week 12 In addition improvement was observed on the Clinical Global Impression of change indicating a reduction in abnormal movements experienced by patients Also SD 809 demonstrated a favorable safety and tolerability profile over the course of the 12 week treatment The company intends to present a complete analysis at a future medical meeting We are encouraged by the recently reported results from the phase III AIM TD study which followed positive data from the first phase III ARM TD trial that were announced this June Teva plans to file for FDA approval by the end of 2016 TEVA PHARM ADR Price Per the company press release TD affects approximately 500 000 people in the U S There are currently no FDA approved treatments for this debilitating hyperkinetic movement disorder representing significant unmet medical need Hence there is ample market opportunity for SD 809 upon a potential approval We note that SD 809 enjoys Breakthrough Therapy status in the U S for the treatment of TD Teva s efforts to gain approval for SD 809 for the treatment of chorea associated with Huntington disease suffered a regulatory setback with the FDA issuing a complete response letter CRL in May 2016 Teva expects to submit a response to the CRL shortly Meanwhile Teva also plans to evaluate SD 809 for the treatment of tics associated with Tourette syndrome SD 809 became part of the company s pipeline following the May 2015 acquisition of Auspex Pharmaceuticals Teva currently carries a Zacks Rank 3 Hold Stocks to ConsiderSome better ranked stocks in the health care sector include Ligand Pharmaceuticals Incorporated NASDAQ LGND Geron Corporation NASDAQ GERN and VIVUS Inc NASDAQ VVUS All the three stocks sport a Zacks Rank 1 Strong Buy You can see For 2016 Ligand witnessed a 12 13 increase in its earnings estimates over the past 60 days The company has also posted an average positive earnings surprise of 36 66 over the last four trailing quarters In each of the last four trailing quarters Geron has surpassed expectations bringing the average positive surprise to 20 78 VIVUS has recorded an average positive surprise of 39 88 over the last four trailing quarters 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 |
XOM | Natural gas turns lower after modest supply decline weather supports | Investing com Natural gas futures turned lower on Thursday retreating from the daily high after a report from the U S Energy Information Administration showed that natural gas inventories declined less than expected last week underscoring concerns over elevated U S storage levels On the New York Mercantile Exchange natural gas futures for delivery in March traded at USD2 416 per million British thermal units during U S morning trade shedding 0 45 It earlier rose by as much as 2 to trade at a session high of USD2 485 per million British thermal units The March contract traded at USD2 446 prior to the release of the U S Energy Information Administration report The U S Energy Information Administration said in its weekly report that natural gas storage in the U S in the week ended February 3 fell by 78 billion cubic feet after declining by 132 billion cubic feet in the preceding week Analysts had expected U S natural gas storage to drop by 85 billion cubic feet Inventories fell by 206 billion cubic feet in the same week a year earlier while the five year average change for the week is a decline of 191 billion cubic feet according to U S Energy Department data Total U S natural gas storage stood at 2 888 trillion cubic feet as of last week Stocks were 714 billion cubic feet higher than last year at this time and 714 billion cubic feet above the five year average of 2 174 trillion cubic feet for this time of year The report showed that in the East Region stocks were 276 billion cubic feet above the five year average following a withdrawal of 59 billion cubic feet Stocks in the Producing Region were 351 billion cubic feet above the five year average of 737 billion cubic feet after a net withdrawal of 11 billion cubic feet Natural gas prices were higher before the supply data after weather service provider Weather com said Wednesday that mild winter temperatures that have lingered in key gas consuming cities such as New York and Chicago were seen slipping into the low 20 s Fahrenheit in Chicago and the low 30 s Fahrenheit in New York boosting demand for the heating fuel However market participants noted that the cold weather spell came far too late to dent the oversupply in the natural gas market With high levels of production continuing across the U S only a prolonged period of frigid weather in the last six weeks of winter is likely to reduce stockpile levels and raise prices This is typically the coldest time in winter but temperatures in the U S have yet to reach levels cold enough to boost demand for the heating fuel keeping prices depressed at unseasonably low levels Winter so far in the U S has been the second mildest since 1950 It is running about 13 warmer than the 30 year normal according to recent data from industry weather group MDA EarthSat Gas prices fell to USD2 319 per million British thermal units on January 20 the lowest since February 2002 before rebounding after a production cut announcement by Chesapeake Energy sparked a massive short covering rally However optimism faded amid a lack of production cut announcements from other major U S natural gas producers Exxon Mobil the largest U S natural gas producer said earlier in the week that it had no intention of curbing gas production Elsewhere on the NYMEX light sweet crude oil futures for delivery in March jumped 1 1 to trade at USD99 81 a barrel while heating oil for March delivery dipped 0 1 to trade at USD3 186 per gallon |
XOM | U S stocks rise on unemployment numbers Dow up 0 11 | Investing com U S stocks finished Friday higher as investors bought on news that unemployment figures came in a little better than expected for February The Dow Jones Industrial Average closed up 0 11 on Friday the S P 500 index was up 0 36 while the Nasdaq Composite index finished up 0 60 U S jobs data served as the market s chief weather vane Earlier on Friday the Bureau of Labor Statistics reported the U S economy added a net 227 000 nonfarm payrolls in February outpacing expectations for a gain of 215 000 Meanwhile the government revised January s figures upward to 284 000 from 243 000 A firming labor market should lead to further demand for goods and services which sent company stocks rising throughout the day However news that the International Swaps and Derivatives Association officially declared Greece s restructuring a default since the country forced private creditors into the swap dampened spirits Fitch meanwhile cut Greece s rating to restricted default over the deal Leading Dow Jones Industrial Average performers included JPMorgan Chase up 1 51 Intel up 0 93 and Travelers up 0 86 Leading index losers included Hewlett Packard down 1 87 Boeing down 1 15 and Exxon Mobil down 0 62 European indices were higher as well After the close of European trade the EURO STOXX 50 rose 0 07 France s CAC 40 rose 0 26 while Germany s DAX 30 finished up 0 67 Meanwhile in the U K the FTSE 100 closed up 0 47 On Monday the U S will release its federal budget balance |
TEVA | Allergan AGN Tops Q2 Earnings Revises 16 Outlook | Allergan plc s second quarter 2016 earnings came in at 3 35 per share easily surpassing the Zacks Consensus Estimate of 3 28 Though up 12 sequentially reported earnings were down 8 7 from the year ago period
Revenues however missed expectations Revenues came in at 3 68 billion up 1 5 from the year ago period falling short of the Zacks Consensus Estimate of 4 14 billion
Quarterly Details
Earlier this month Allergan divested its generics business to Teva Pharmaceutical Industries NYSE TEVA Ltd and also signed an agreement to sell its Anda distribution segment Allergan has been treating its generics business as discontinued operations and has considered the Anda distribution segment as discontinued operations from the second quarter of 2016
Continuing operations include the U S General Medicine U S Specialized Therapeutics and International business segments
U S Specialized Therapeutics net revenues increased 10 5 to 1 5 billion driven by strong growth in Eye Care Facial Aesthetics and Neuroscience Products like Botox and Restasis brought in sales of 189 9 million and 371 3 million respectively While Botox sales were driven by continued market share expansion enhanced promotional focus and overall continued strong demand for the product Restasis benefited from continued strong promotional efforts
U S General Medicine net revenues fell 9 9 to 1 4 billion in the second quarter of 2016 due to a decline in Central Nervous System and Established Brands revenues that was partially offset by strong growth in Gastroenterology Women s Health and Anti Infectives performance
Strong growth was put up by products like Linzess Lo Loestrin Estrace Cream Minastrin 24 Liletta and new product launches like Viberzi Avycaz and Dalvance
International segment recorded net revenues of 757 million up 5 6 from the year ago period Its growth was driven by Eye Care Facial Aesthetics and Botox revenues 2016 Outlook Updated
Allergan updated the guidance for 2016 The updated guidance excludes the impact of Anda from net revenues and expenses Allergan expects total net revenues in the range of 14 65 billion to 14 90 billion Previously Allergan had anticipated total net revenues of about 17 billion The Zacks Consensus Estimate for revenues is currently at 16 62 billion Branded net revenues are expected in the range of 14 75 billion to 15 billion in 2016 Previously branded net revenues were expected to be approximately 15 billion in 2016
Allergan expects earnings in the range of 13 75 to 14 20 per share The Zacks Consensus Estimate for earnings is currently at 14 01 per share
While research and development spend is still expected to be about 1 5 billion selling general and administrative SG A expenses are expected to be around 4 billion Previously the company had anticipated SG A expenses as a percentage of net revenue to be approximately 25
Allergan plans to start a share buyback program shortly with an initial focus of repurchasing approximately 5 billion in shares over the remainder of the year Upon the closing of this program the company will evaluate whether to move forward and repurchase the remaining 5 billion authorized by the board We note that the company had announced a new share buyback program of up to 10 billion at the time of announcing first quarter results
ALLERGAN PLC Price
Our Take
Allergan s second quarter results were mixed with the company beating on earnings while missing revenue estimates With the closing of the Teva deal the company s restructured and simplified business is encouraging We are also encouraged by Allergan s focus on building its branded and biosimilars pipeline Moreover the divestment of the generics business should allow the company to focus on its target areas
Allergan is a Zacks Rank 3 Hold stock A couple of better ranked stocks in the health care sector are Anika Therapeutics Inc and Geron Corporation each sporting a Zacks Rank 1 Strong Buy |
XOM | European stocks higher on Greece optimism DAX gains 0 9 | Investing com European stock markets were broadly higher on Tuesday as appetite for riskier assets was boosted amid signs of progress in talks between Greece and its bondholders During European morning trade the EURO STOXX 50 jumped 1 France s CAC 40 rallied 1 1 while Germany s DAX 30 gained 0 9 European equities added to gains after official data showed that the number of unemployed people in Germany fell more than expected in January while the country s jobless rate dropped to a record low easing concerns over the economic outlook for the region s biggest economy Market sentiment was already firm after Greek Prime Minister Lucas Papademos said Monday that significant progress was made in talks aimed at restructuring the country s debt boosting hopes that a deal can be finalized before the end of the week Shares in the financial sector performed strongly Italian lenders Unicredit and Intesa Sanpaolo saw shares climb 3 and 3 15 respectively France s BNP Paribas advanced 2 5 while Germany s Commerzbank saw shares gain 1 9 Spain s Banco Santander underperformed after reporting that fourth quarter net profit plunged 98 after taking a EUR1 81 billion charge on its Spanish real estate holdings The stock was up 0 5 In London FTSE 100 rose 0 65 boosted by upbeat earning reports from chip maker ARM Holdings and media giant BSkyB ARM which supplies processors for Apple s iPads and iPhones saw shares rally 5 15 after saying that fourth quarter net profit rose 11 to GBP33 million Sales rose to GBP137 8 million a 21 increase from a year earlier British Sky Broadcasting Group saw shares rise 3 05 after reporting a 8 4 jump in first half net profit The broadcaster also announced that it would launch a new Internet based pay television service in the first half of 2012 Raw material producers contributed to gains after oil and metal prices advanced Oil giant British Petroleum saw shares climb 2 7 while mining giants Rio Tinto and BHP Billiton rose 1 4 and 1 1 respectively In the U S equity markets pointed to a higher open ahead of earnings reports from oil major Exxon Mobil and pharmaceutical giants Pfizer and Eli Lilly The Dow Jones Industrial Average futures pointed to a rise of 0 45 S P 500 futures signaled a 0 4 increase while the Nasdaq 100 futures indicated a 0 5 gain Later in the day the U S was to release industry data on house price inflation as well as a report on manufacturing activity in the Chicago region The country is also to publish a report on consumer confidence |
XOM | Natural gas tumbles as traders shrug off cool weather forecasts | Investing com Natural gas prices erased gains on Tuesday retreating from a one week high as traders shrugged off forecasts for cooler weather across most parts of the U S instead focusing on record high inventory levels which has dampened sentiment on the heating fuel in recent weeks On the New York Mercantile Exchange natural gas futures for March delivery traded at USD2 482 per million British thermal units during U S morning trade tumbling 2 65 It earlier rose by as much as 1 35 to trade at USD2 617 per million British thermal units the highest since January 31 Natural gas prices were boosted earlier after the Commodity Weather Group said earlier that it expected colder than normal temperatures to last into early next week for the U S east coast while the U S Midwestern states should stay cooler longer into next week as well However prices could not hold on to gains as traders said those expected brief periods of cold weather came far too late to dent the oversupply in the natural gas market Official supply data released last week showed that U S gas inventories remain at their highest level ever for this time of year Total U S natural gas storage stood at 2 966 trillion cubic feet as of last week 25 above both year ago levels and the five year average for this time of year In the prior week the surplus was 21 above historical levels Early injection estimates for next week s storage data range from a withdrawal of 78 billion cubic feet to 110 billion cubic feet well below last year s drop of 206 billion cubic feet and the five year average decline for the week of 191 billion This is typically the coldest time in winter but temperatures in the U S have yet to reach levels cold enough to boost demand for the heating fuel keeping prices depressed at unseasonably low levels Winter so far in the U S has been the second mildest since 1950 It is running about 13 warmer than the 30 year normal according to recent data from industry weather group MDA EarthSat Gas prices fell to USD2 319 per million British thermal units on January 20 the lowest since February 2002 before rebounding after a production cut announcement by Chesapeake Energy sparked a massive short covering rally However optimism faded amid the lack of production cut announcements from other major U S natural gas producers Exxon Mobil the largest U S natural gas producer said earlier in the week that it had no intention of curbing gas production With high levels of production continuing across the U S only a prolonged period of frigid weather in the last six weeks of winter is likely to reduce stockpile levels and raise prices Inventory withdrawals this winter are running nearly 400 billion cubic feet below average or about 30 Elsewhere on the NYMEX light sweet crude oil futures for delivery in March climbed 0 8 to trade at USD97 69 a barrel while heating oil for March delivery added 0 45 to trade at USD3 184 per gallon |
XOM | Natural gas futures fluctuate with weather supply data in focus | Investing com Natural gas prices fluctuated between gains and losses on Wednesday trading close to a 10 year low as traders focused on forecasts for colder weather across most parts of the U S but gains were capped amid lingering concerns over record high inventory levels On the New York Mercantile Exchange natural gas futures for March delivery traded at USD2 470 per million British thermal units during U S morning trade easing down 0 1 The March contract traded as low as USD2 392 per million British thermal units which was the lowest since February 2 before recovering to rise to a session high of USD2 502 Weather service provider Weather com said earlier that mild winter temperatures that have lingered in key gas consuming cities such as New York and Chicago were seen slipping into the low 20 s Fahrenheit in Chicago and the low 30 s Fahrenheit in New York boosting demand for the heating fuel However prices could not hold on to gains as traders said the cold weather spell came far too late to dent the oversupply in the natural gas market This is typically the coldest time in winter but temperatures in the U S have yet to reach levels cold enough to boost demand for the heating fuel keeping prices depressed at unseasonably low levels Winter so far in the U S has been the second mildest since 1950 It is running about 13 warmer than the 30 year normal according to recent data from industry weather group MDA EarthSat Meanwhile natural gas traders were looking forward to Thursday s closely watched U S Energy Information Administration s report on U S natural gas stockpiles for the week ended February 3 to gauge the strength of demand in the U S The data could show a decline of 85 billion cubic feet well below last year s drop of 206 billion cubic feet and the five year average decline for the week of 191 billion With high levels of production continuing across the U S only a prolonged period of frigid weather in the last six weeks of winter is likely to reduce stockpile levels and raise prices Inventory withdrawals this winter are running nearly 400 billion cubic feet below average or about 30 Barclays said that U S natural gas production would need to fall by 5 for prices to rise towards USD4 00 per million British thermal units In a report published earlier the bank said that U S gas producers will have to reduce gas flows by an average 3 2 billion cubic feet a day to push prices higher Producers currently have announced supply cuts amounting to just 1 of output according to the bank Gas prices fell to USD2 319 per million British thermal units on January 20 the lowest since February 2002 before rebounding after a production cut announcement by Chesapeake Energy sparked a massive short covering rally However optimism faded amid a lack of production cut announcements from other major U S natural gas producers Exxon Mobil the largest U S natural gas producer said earlier in the week that it had no intention of curbing gas production Elsewhere on the NYMEX light sweet crude oil futures for delivery in March climbed 0 95 to trade at USD99 36 a barrel while heating oil for March delivery dipped 0 15 to trade at USD3 186 per gallon |
XOM | Natural gas futures continue lower on supply warm weather | Investing com Natural gas prices traded lower Wednesday falling from a one week high despite forecasts for cooler weather across much of the U S On the New York Mercantile Exchange natural gas futures for March delivery traded at USD2 44 per million British thermal units during late U S trade falling 1 27 Prices hit a high of USD2 51 per BTU earlier and a low of USD2 39 per BTU was posted during the trading session Natural gas prices were supported yesterday after the Commodity Weather Group stated it forecasts colder than normal temperatures into early next week on the east coast of the USA However prices could not hold on to gains as traders said those expected brief periods of cold weather came far too late to dent the oversupply in the natural gas market Official supply data released last week showed that U S gas inventories remain at their highest level ever for this time of year Total U S natural gas storage stood at 2 966 trillion cubic feet as of last week 25 above both year ago levels and the five year average for this time of year In the prior week the surplus was 21 above historical levels Early estimates for next week s storage data range from a withdrawal of 78 billion cubic feet to 110 billion cubic feet well below last year s drop of 206 billion cubic feet and the five year average decline for the week of 191 billion This is typically the coldest time in winter but temperatures in the U S have yet to reach levels cold enough to boost demand for the heating fuel keeping prices depressed at unseasonably low levels Winter so far in the U S has been the second mildest since 1950 It is running about 13 warmer than the 30 year normal according to recent data from industry weather group MDA EarthSat Gas prices fell to USD2 319 per million British thermal units on January 20 the lowest since February 2002 before rebounding after a production cut announcement by Chesapeake Energy sparked a massive short covering rally However optimism faded amid the lack of production cut announcements from other major U S natural gas producers Exxon Mobil the largest U S natural gas producer said earlier in the week that it had no intention of curbing gas production Official data last week indicated that U S gas supplies fell by 192 billion cubic feet The drawdown was above the 184 billion cubic feet withdrawn in the same week a year earlier It also topped the five year average withdraw of 173 billion cubic feet for the week Despite this significant drop inventories remain at their highest level ever for this time of year Total U S natural gas storage stood at 3 098 trillion cubic feet as of last week Earlier Morgan Stanley cut its 2012 natural gas price forecast by almost 30 to an average USD2 70 per BTU Elsewhere on the NYMEX light sweet crude oil futures for delivery in March climbed 0 52 to trade at USD98 92 a barrel |
WFC | If coronavirus fears escalate Wells Fargo warns 10 year Treasury yields could fall another 30 | Wells Fargo Securities Michael Schumacher expects the bond rush to intensify According to the firm s global head of rate strategy coronavirus fears will drive more investors into the U S Treasury market as a safe haven play and drive yields sharply lower The benchmark 10 year Treasury Note yield is already down 22 so far this year Our big concern is that investors get more and more nervous Schumacher told CNBC s Trading Nation on Friday We would say that probably the last 25 to 30 basis points mainly in the 10 year is largely due to the virus On Friday the 10 year yield hit a low of 1 50 its lowest level since early September It s really a function of the news flow coming out of China in the near term he said If the coronavirus situation continues to deteriorate Schumacher warns 10 year yields could fall at least another 30 The worst case I would say with respect to the virus is that it has a massive effect on the global economy and knocks yields down to let s say somewhere in the low ones for the 10 year he added It s a low probability but it s not zero in our opinion He warns the coronavirus outbreak coupled with negative interest rates around the world is making U S Treasurys particularly attractive right now despite the historically low yield Will there be a lot of follow on hedging activity by investors who pushed the yield down quickly We haven t seen a lot of it so far but it could happen said Schumacher The coronavirus scare was also responsible on Friday for the stock market s big pullback The Dow lost 603 points and the index is now negative for the year The S P 500 and tech heavy Nasdaq are now having their worst start to the year since 2016 If stocks continue to get hammered Schumacher expects it to put Treasury yields under more pressure For every one percent move in the S P it s worth four basis points maybe in the 10 year Schumacher said If you saw a downdraft of a couple percent more in stocks that could push yields back to that 1 44 to 1 45 level Disclaimer |
WFC | How many people really are watching The Mandalorian Data firms offer numbers that Disney and Netflix won t | By Helen Coster and Neha Malara Reuters For those obsessed with who is winning the video streaming wars one metric matters subscriber growth But Netflix Inc NASDAQ NFLX and now Walt Disney NYSE DIS Co with its November launch of Disney typically release that figure quarterly leaving outsiders to guess at subscriber growth in any way they can A cottage industry of companies has sprung up to fill that vacuum Firms like Apptopia Sensor Tower and App Annie born years ago to track how many people download mobile apps are now playing a bigger role in the streaming war that kicks into gear this year as AT T NYSE T Inc s WarnerMedia and Comcast NASDAQ CMCSA Corp owned NBCUniversal launch new services These firms sell mobile download data they arrive at by applying algorithmic magic to publicly available data and data from other apps The process is propriety they say and opaque to outsiders The resulting figures which are approximations of mobile downloads not the new subscribers the companies disclose do not correlate exactly with subscriber growth but are influential Third party data is widely reported in the press including in Reuters stories Bloomberg offers Apptopia s mobile data to its clients The data is also cited in research from Wall Street firms including Credit Suisse SIX CSGN Bank of America NYSE BAC and Wells Fargo NYSE WFC sometimes as a worthwhile indication of performance and other times dismissively The data moves markets On Nov 26 shortly after Apptopia released data indicating that Disney was averaging nearly a million new subscribers a day a report that was covered widely in the press Disney shares rose 2 3 to 153 43 setting a new record high To survey how often these firms get it right Reuters reviewed eight quarters of data from Netflix and the same amount of data from two of the third party app measurement firms It found that Sensor Tower s past eight quarters of Netflix mobile download data has directionally if not precisely mirrored Netflix global paid membership growth Apptopia download data mirrored it directionally in all but two quarters Can app download data predict Netflix user growth Click graphic Even so the data is controversial critics say these firms do a poor job of tracking how many people drop a streaming service and as such should not be viewed as a proxy for growth If we had based our conclusions on app download data we d be very incorrect about what Netflix is doing and everything in any given quarter said MoffettNathanson analyst Michael Nathanson who said his firm had used Apptopia and Sensor Tower but no longer does so Netflix did not respond to requests for comment Disney and App Annie declined to comment Executives from Sensor Tower and Apptopia emphasize that the data reflects trends not precise growth The reason people like and trust the mobile data is that mobile gets the most screen time it s indicative of how people are living their lives says Adam Blacker a vice president at Apptopia What we re doing is nailing the trends and the percentage swings Recent quarters of Netflix mobile download data from Apptopia and Sensor Tower while directionally mostly correct have been off in notable ways Apptopia recorded negative download growth for Netflix in the second and fourth quarters of 2019 compared to the 22 and 20 global paid membership growth the company reported respectively In the third quarter of 2019 Apptopia reported single digit growth compared with an increase of 21 reported by Netflix We re not going to be right 100 of the time says Blacker about those quarters We re not going to tell you to trade on download data Sensor Tower reported single digit global mobile app install growth for Netflix in the second and fourth quarters of 2019 compared with growth of 22 and 20 respectively reported by Netflix We re only looking at mobile said Randy Nelson head of mobile insights at Sensor Tower We only capture that first time install it could be someone downloading on their phone could be someone who s been a Netflix subscriber for a while but never put it on their phone That and the fact our figures are estimates is it will never be 1 to 1 Despite that limitation the data may become more ubiquitous as new streaming services launch
I think everyone s looking for an edge on subscribers says Nathanson These stocks trade on subscribers |
WFC | Wells Fargo hires Santander executive to oversee sales practices | By Imani Moise Reuters Wells Fargo Co N WFC has hired Michael Cleary from Santander MC SAN Holdings USA Inc to lead sales practices oversight and management according to an internal memo seen by Reuters A Wells Fargo spokesperson confirmed the contents of the memo which said that in the newly created role Clearly will develop an approach to sales practices monitoring and reporting across the company Cleary will report to new Chief Operating Officer Scott Powell who joined the bank from Santander in December to focus on Wells Fargo s relationships with regulators Powell signed the memo During his tenure as co president of Santander Bank Cleary served on the sales practices committee and worked on various regulatory compliance initiatives Wells Fargo has created a number of new leadership positions to address fallout of a long standing sales practices scandal that erupted in 2016 Within the past year it has added a head of strategic execution and operations position to its operating committee to focus on compliance and created enterprise customer excellence group to organize its remediation and complaints operations The San Francisco based bank is operating under more than a dozen regulatory consent orders including an unprecedented growth restriction on its balance sheet from the Federal Reserve until the bank proves it has fixed its risk controls Additionally Wells Fargo faces federal probes by the Department of Justice the Securities and Exchange Commision and the Department of Labor |
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