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Benzinga’s Top Downgrades

Courtesy of Benzinga.

Benzinga's Top Downgrades

  • Credit Suisse downgraded Time Warner Inc (NYSE: TWX) from Outperform to Neutral. Time Warner shares fell 0.98 percent to $88.60 in pre-market trading.
  • Barclays downgraded Actuant Corporation (NYSE: ATU) from Equal-Weight to Underweight. Actuant shares fell 1.56 percent to $22.15 in pre-market trading.
  • Investec downgraded Royal Bank of Scotland Group PLC (NYSE: RBS) from Hold to Sell. Royal Bank of Scotland shares dropped 0.21 percent to $4.67 in pre-market trading.
  • Mizuho downgraded Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) from Buy to Neutral. Teva shares fell 0.80 percent to $43.65 in pre-market trading.
  • Analysts at Morgan Stanley downgraded United Rentals, Inc. (NYSE: URI) from Overweight to Equal-Weight. The price target for United Rentals has been lowered from $85 to $81. United Rentals shares rose 0.06 percent to close at $79.18 on Friday.
  • Analysts at Wolfe Research downgraded Entergy Corporation (NYSE: ETR) from Peer Perform to Underperform. Entergy shares fell 0.46 percent to close at $74.17 on Friday.
  • Deutsche Bank downgraded Brown & Brown, Inc. (NYSE: BRO) from Buy to Hold. Brown & Brown shares rose 1.37 percent to close at $37.62 on Friday.
  • Cowen & Co. downgraded AT&T Inc. (NYSE: T) from Outperform to Market Perform. AT&T shares dropped 2.69 percent to $36.48 in pre-market trading.
  • Analysts at H.C. Wainwright downgraded Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) from Buy to Neutral. Vertex Pharmaceuticals shares fell 2.60 percent to close at $80.76 on Friday.
  • Analysts at Bank of America downgraded Electronic Arts Inc. (NASDAQ: EA) from Buy to Neutral. Electronic Arts shares fell 1.77 percent to $81.40 in pre-market trading.

Latest Ratings for TWX

Date Firm Action From To
Oct 2016 Evercore ISI Group Downgrades Buy Neutral
Oct 2016 Atlantic Equities Downgrades Overweight Neutral
Oct 2016 Moffett Nathanson Downgrades Buy Neutral

View More Analyst Ratings for TWX

View the Latest Analyst Ratings

Posted-In: Top DowngradesDowngrades Analyst Ratings

Un-Carrier Is Delivering: T-Mobile Investors Cheer Q3 Results, Outlook

Courtesy of Benzinga.

Un-Carrier Is Delivering: T-Mobile Investors Cheer Q3 Results, Outlook

  • EPS $0.42 vs $0.23 est, up $0.27 year-over-year.
  • Sales $9.2 billion vs $9.42 billion est, up 17.8 percent year-over-year.
  • 2.0 million total net adds in the quarter.
  • Industry leading net adds of 851,000 branded postpaid phone net adds.
  • Company raises and narrows fiscal 2016 guidance.

What Does That Mean For The Company?

T-Mobile US Inc (NASDAQ: TMUS) claimed in its earnings report that it’s the the fastest growing wireless company in America with industry-leading financial growth.

Given the ongoing momentum seen in the company’s third quarter report, management boosted its fiscal 2016 adjusted EBITDA guidance to a range of $10.2-$10.4 billion from a prior range of $9.8-$10.1 billion.

What Does That Mean For The Investor?

T-Mobile’s stock rose more than 4 percent in the pre-market session as the company’s “Un-carrier” strategy continues to disrupt the market and take market share away from its larger competitors.

By comparison, investors were large sellers of Verizon Communications Inc. (NYSE: VZ)’s stock after its mixed third quarter results failed to impress the Street.

“That’s 14 quarters in a row that T-Mobile has won share from the competition,” John Legere, President and CEO of T-Mobile, said in the earnings report. “The Un-carrier is delivering. We took share and grew our customer base while producing both financial growth and shareholder value. Most importantly, we are delivering results for both customers and shareholders alike.”

Posted-In: John Legere T-Mobile T-Mobile EarningsEarnings Long Ideas News Movers Trading Ideas Best of Benzinga

Technical Alert: Google Makes New All-Time-High

Courtesy of Benzinga.

  • $813.78 – Intraday high (new all-time-high)
  • $813.00 – Current price as of 12:56 PM
  • $804.82 – Intraday low as of 12:56 PM
  • $804.63 – Former all time high
  • $799.37 – Friday close

If content like this is useful to your trading/investing strategy, please email with the headline to let us know!

Posted-In: Technicals Intraday Update Movers Trading Ideas

Technical Alert: Microsoft Makes New All-Time-High

Courtesy of Benzinga.

  • $60.70 – Intraday high as of 12:51 PM
  • $60.50 – Current price as of 12:51 PM
  • $60.45 – Friday high (former all-time-high)
  • $59.93 -Intraday low as of 12:51 PM
  • $59.66 – Friday close

If content like this is useful to your trading/investing strategy, please email with the headline to let us know!

Posted-In: Technicals Intraday Update Movers Trading Ideas

FYI: AT&T Usually Trades Sideways After Big Deals, Outperforms The Year After

Courtesy of Benzinga.

FYI: AT&T Usually Trades Sideways After Big Deals, Outperforms The Year After

Confirming speculations, AT&T Inc. (NYSE: T) announced that it had reached an agreement to acquire Time Warner Inc (NYSE: TWX) for $85.4 billion or $107.50 per share.

Oppenheimer’s Timothy Horan maintains a Buy rating on AT&T, with a price target of $46.

What The Merger Means

“The merger allows T to combine leadership in distribution with a portfolio of high-quality content,” Horan mentioned, while adding that the deal was expected to be 4 percent accretive to AT&T’s EPS and free cash flow per share in 2018, with $1.5 billion in pretax synergies.

Related Link: Jim Stewart: AT&T-Time Warner Deal Has A 98% Chance Of Regulatory Approval

“T’s stock usually trades sideways while large transactions are announced with outperformance the year after closing, which should take nine months,” the analyst went on to say.


The deal requires a review by the Department of Justice (DoJ), and Horan pointed out that the DoJ has never rejected a vertical merger, although there is likely to be meaningful “political noise” around the acquisition.

However, the analyst also believes that the merger would be positive for towers, fibers, datacenters and CDNs.

Horan believes this acquisition is in line with AT&T’s goal of growing OTT video, especially over mobile, which could help reduce churn.

The analyst also stated, “The transaction is somewhat defensive as the hyper-scale Internet companies are also looking to provide OTT video services,” and that controlling content would allow the company to…
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How McDonald’s Can Continue To Recapture Market Share

Courtesy of Benzinga.

How McDonald's Can Continue To Recapture Market Share

BTIG believes McDonald’s Corporation (NYSE: MCD) can continue to recapture market share through “menu enhancement, improved restaurant operations and expanded digital capabilities.”

The comments came after McDonald’s reported better-than-expected third-quarter results, driven by strong comps and company-owned margins.

The company plans to invest more in “Experience of the Future” initiative over the next three years.

“[W]e believe the investment in the ‘Experience of the Future’ has the potential to drive incremental same-store sales while at the same time elevating the brand in the coming years,” analyst Peter Saleh wrote in a note.

However, Saleh said the company needs to overcome two major hurdles to make Experience of the Future a success. First, the platform should generate incremental sales through the drive-thru, which accounts for roughly 2/3 of sales in the United States.

Related Link: McDonald’s Q3 Shows Some Concerning Trends

“We believe the return hurdle would be too high if McDonald’s can’t leverage the platform to drive-thru for this investment,” Saleh highlighted.

Second, the analyst said McDonald’s would need to remodel most, though likely not all, of the remaining about 7,000 domestic units either simultaneously or ahead of the Experience of the Future deployment. If 85 percent of units set to be remodeled, the company should spend $1.2 billion–$1.4 billion.

However, Saleh maintains his Buy rating and $137 price target saying that All Day Breakfast enhancements and improved value offerings should offset difficult sales comparisons in the next two quarters.

At the time of writing, shares of McDonald’s were down 0.85 percent to $112.96.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you’d like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for MCD

Date Firm Action From To
Oct 2016 Nomura Maintains Neutral
Oct 2016 Telsey Advisory Group Initiates Coverage On Outperform
Sep 2016 Citigroup Maintains Neutral

View More Analyst Ratings for MCD

View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings Long Ideas News Price Target Reiteration Restaurants Analyst Ratings Best of Benzinga

Benzinga’s Volume Movers

Courtesy of Benzinga.

  • B/E Aerospace Inc (NASDAQ: BEAV) surged 15.4 percent to $58.38. The volume of B/E Aerospace shares traded was 3697 percent higher than normal. Rockwell Collins Inc (NYSE: COL) agreed to buy B/E Aerospace for $62 per share in cash and stock. The deal is valued at $6.4 billion plus the assumption of $1.9 billion in debt.
  • Helios and Matheson Analytics Inc (NASDAQ: HMNY) shares moved up 10.6 percent to $10.95. The volume of Helios and Matheson Analytics traded was 1507 percent higher than normal. Helios and Matheson Analytics shares have jumped 375.96 percent over the past 52 weeks, while the S&P 500 index has gained 3.38 percent in the same period.
  • T-Mobile US Inc (NASDAQ: TMUS) shares gained 6.9 percent to $49.95. The volume of T-Mobile US shares traded was 772 percent higher than normal. T-Mobile posted better-than-expected quarterly earnings.
  • AAC Holdings Inc (NYSE: AAC) shares rose 5.5 percent to $17.81. The volume of AAC Holdings shares traded was 632 percent higher than normal. AAC Holdings reported a resolution with California’s Attorney General and all charges against the company’s subsidiaries has been dismissed.

Posted-In: volume moversNews Intraday Update Markets Movers

4 Catalysts To Drive EPS Growth For Johnson Controls

Courtesy of Benzinga.

4 Catalysts To Drive EPS Growth For Johnson Controls

In a research report released on Monday, Goldman Sachs outlined four catalysts that could drive earnings per share growth at Johnson Controls International plc Ordinary Share (NYSE: JCI). The firm initiated coverage of the company at Buy with a 12-month price target of $46.

Analyst Joe Ritchie mentioned differentiated organic growth, synergies, improving free cash flow and attractive valuation as the four catalysts.

The analyst estimates 2017/2018 organic growth of 3–4 percent, above the 1–2 percent average run rate for his coverage universe. According to the analyst, the exposure of the company is more nuanced than just auto/non-residential, as new construction represents less than 25 percent of non-residential activity and its battery business is tied to a secular shift from traditional lead acid to AGMs.

Related Link: Cramer Gives His Opinion On Johnson Controls, ConforMI, Zimmer Biomet, SemGroup And T. Rowe Price

Goldman said its analysis of industrial deal implies average cost efficiency of about 6–7 percent. The firm noted that about 3/4th of its incremental EBIT through 2019 is driven by operational improvements, with organic growth contributing very little.

The firm commended the improvement in free cash flow, even as the metric is not as strong as its peers. Despite investor concerns on peaking non-residential construction and auto cycle weighing on the shares of the company, Goldman believes the strong EBIT growth and improving returns warrant a higher multiple.

At last check, Johnson Controls was up 1.23 percent at $44.60.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you’d like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for JCI

Date Firm Action From To
Oct 2016 Goldman Sachs Initiates Coverage On Buy
Oct 2016 Baird Initiates Coverage On Outperform
Sep 2016 Cowen & Co. Initiates Coverage on Outperform

View More Analyst Ratings for JCI

View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Movers Trading Ideas Best of Benzinga

5 Stocks Moving In Monday’s After-Hours Session

Courtesy of Benzinga.

Stocks traded up on Monday, helped by strong corporate results and several large M&A announcements.

After the market closed, Visa Inc (NYSE: V) reported Q4 EPS of $0.78 beat the Street’s consensus by $0.05, while revenue of $4.261 billion came in ahead of estimates of $4.23 billion. Despite the strong results, shares lost more than 1.35 percent.

Sonic Corporation (NASDAQ: SONC) lost 11.7 percent after a revenue miss. Even though earnings of $0.45 per share beat estimates by $0.01, sales of $162.1 million, fell considerably short of expectations for $167 million in revenue.

Cadence Design Systems Inc (NASDAQ: CDNS) slipped almost 1 percent after the bell rang. EPS of $0.30 beat the Street’s consensus by $0.02, but revenue of $446.22 million, was just in line with estimates. Management said it expects full year EPS of $1.19-$1.21, versus estimates of $1.20, on revenue of $1.81 billion to $1.82 billion, versus consensus at $1.82 billion.

On the other hand, Swift Transportation Co (NYSE: SWFT) and Rambus Inc. (NASDAQ: RMBS) gained 2.3 percent and 5.1 percent, respectively, on their earnings reports. Rambus posted top and bottom line beat; Swift beat EPS estimates but missed sales expectations.

Posted-In: Earnings News Guidance After-Hours Center Movers

Rockwell Collins to Acquire B/E Aerospace for $8.3B

Courtesy of Benzinga.

Rockwell Collins (NYSE: COL) and B/E Aerospace (NASDAQ: BEAV)  today announced that they have entered into a definitive agreement under which Rockwell Collins will acquire B/E Aerospace for approximately $6.4 billion in cash and stock, plus the assumption of $1.9 billion in net debt.

Under the terms of the agreement, each B/E Aerospace shareowner will receive total consideration of $62.00 per share, comprised of $34.10 per share in cash and $27.90 in shares of Rockwell Collins common stock, subject to a 7.5% collar. This represents a premium of 22.5% to the closing price of B/E Aerospace common stock on Friday, October 21, 2016.

Upon completion of the transaction, which is expected in the spring of 2017, current B/E Aerospace shareowners will own approximately 20 percent of the combined company. Rockwell Collins expects to finance the cash portion of the transaction with debt financing, a significant portion of which has been committed.

Posted-In: News M&A


Zero Hedge

Introducing Yield Purchasing Power

Courtesy of ZeroHedge. View original post here.

The monetary debate seems artificially limited. On one side is Federal Reserve policy based on discretion. On the other is policy based on rules. It’s Keynes vs. Friedman. It’s central planning of our economy based on the reactive whims of wise monetary planners vs. central planning of our economy based on the proactive rules written by … wise monetary planners.

On the rules side, there is a sub-debate. Should we have central planning based on unemployment and the Consumer Price Index (as now) or switch to central planning based on another metric such as GDP?

Whether one is on team Keynes or team Friedman, whether one ...

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Phil's Favorites

The Biggest Risk of a Clinton Presidency


The Biggest Risk of a Clinton Presidency

Courtesy of Cullen Roche, Pragmatic Capitalism

Hillary Clinton will be a one term President. The reason I say this is because I suspect that her economic plan will not be very stimulative and I think that four more years of weak economic growth will be intolerable. And the main driver of my thinking here is deeply rooted in Bill Clinton’s presidency.

Back in the late 90’s the US government ran a brief budget surplus. It was heralded as an act of “fiscal responsibility” at the time. Of course, when the economy tanked immediately following the surplus the government was driven back in the red as tax receipts cratered and automatic spending jumped.


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Global Asset Management 3Q16 - Cash is a Capital Allocation Strategy

By VW Staff. Originally published at ValueWalk.

Global Asset Management commentary for the quarter ended September 30, 2016.

Also see


Dear Friends,

Year-to-date we’v...

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Market News

News You Can Use From Phil's Stock World


Financial Markets and Economy

The Brexit economy: falling pound and rising inflation fuel fears of slowdown (The Guardian)

The British economy’s post-Brexit vote bounce is losing momentum as the weak pound and higher inflation herald a squeeze in living standards, according to a Guardian analysis.

S&P 500 Skew Unwind Shows Complacency Over Clinton Win: Analysis (Bloomberg)


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Swing trading portfolio - week of October 24th,2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Kimble Charting Solutions

Banks- This is putting a smile on this sector

Courtesy of Chris Kimble.

Historically, when strong bull markets have taken place, Banks go along for the ride. Since the summer of 2014, banks have under performed the broad market by around 12%, as the S&P is just a couple of percent from all-time highs. Are banks about to act healthier and put a smile on this sector, which could help the S&P breakout above the 2,150 level?

Below looks at the Bank Index (BKX)



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Chart School

Weekly Market Recap Oct 23, 2016

Courtesy of Blain.

The week that was…

A sleepy week indeed as almost all the “action” came out of a gap up Tuesday morning and a gap down Friday morning (which was met with buyers).  Outside of those events, the indexes stuck closely to unchanged most of the week.  Earnings began in earnest but outside of some individual high profile stories it was a lot of beating lowered expectations.

“Despite a couple of good reports, we’re in the midst of another earnings season that is hardly painting a bright picture,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. “Having another quarter where profits contract is not an underpinning for stocks to advance, and the market is searching for, if not demanding, a catalyst to move higher. At the moment, one is lackin...

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Members' Corner

The Orlando Massacre Part 3

Courtesy of Nattering Naybob.

A continuation of a Naybob of IT's Natterings from Part 1 and Part 2...

While many Christian churches expressed grief and offered free funeral services for the victims of the Orlando shooting, the fundamentalist Westboro Baptist Church held an anti-gay protest during the funeral of the victims.

But the Westboro Baptist Church's protest rally was blocked by about 200 people who formed a human barricade on the main street in downtown Orlando, ...

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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...

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Digital Currencies

Gold, Silver and Blockchain - Fintech Solutions To Negative Rates, Bail-ins, Currency Debasement and Cashless

Courtesy of ZeroHedge. View original post here.

By Jan Skoyles

I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.


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Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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PSW is more than just stock talk!


We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more! features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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