Brean Capital initiated coverage on GrubHub Inc (NYSE: GRUB) with a Hold rating.
Analyst Tom Forte noted that "catalysts for the stock include an acceleration in active diner growth or take rate in 3Q14. In our view, its $36.86 share price adequately reflects our favorable opinion of GrubHub and its business model. We would be comfortable recommending their purchase if there was a pullback."
Forte commented that "the company is leading the way as consumers increasingly use their connected devices, including their smartphones, to order online from restaurants instead of calling in their orders and relying on physical menus. Today, only 5 percent of take- out orders are placed online."
"Investor sentiment is already favorable, which is reflected in the high multiples (shares currently trade at an 87.8x forward P/E ratio and 31.9x forward EV/EBITDA). However; we are not forecasting an acceleration, with pro forma active diner growth of 45.0 percent vs. 50.7 percent last quarter and a pro forma take rate of 12.0 percent vs. 14.2 percent last quarter," according to the report.
GrubHub Inc recently traded at $36.81, down 0.38 percent.
Synergy Pharmaceuticals (NASDAQ: SGYP) shares jumped 13.14% to $3.10 in pre-market trading after the company presented positive Phase 2b study results for Plecanatide in patients with irritable bowel syndrome with constipation.
Illumina (NASDAQ: ILMN) shares jumped 8.60% to $178.62 in pre-market trading after the company reported upbeat quarterly earnings and raised its earnings guidance for the full year.
Harley-Davidson (NYSE: HOG) shares rose 7.74% to $62.90 in pre-market trading after the company posted better-than-expected earnings for the third quarter.
Inovio Pharmaceuticals (NASDAQ: INO) gained 6.48% to $12.98 after the company reported that the DARPA has awarded $12.2 million for a collaborative study that will be conducted by scientists from the Perelman School of Medicine at the University of Pennsylvania; Inovio Pharmaceuticals; and MedImmune.
Macquarie upgraded Charter Communications (NASDAQ: CHTR) from Neutral to Outperform. The price target for Charter Communications is set to $155. Charter Communications’ shares closed at $148.18 yesterday.
Guggenheim Securities upgraded Pioneer Natural Resources Company (NYSE: PXD) from Neutral to Buy. The price target for Pioneer Natural Resources has been lowered from $216.00 to $206.00. Pioneer Natural Resources’ shares closed at $179.71 yesterday.
Analysts at Global Hunter upgraded Devon Energy (NYSE: DVN) from Neutral to Accumulate. The price target for Devon Energy has been lowered from $80.00 to $68.00. Devon Energy’s shares closed at $57.98 yesterday.
Analysts at Janney Capital upgraded Illumina (NASDAQ: ILMN) from Neutral to Buy. The price target for Illumina has been raised from $165.00 to $192.00. Illumina’s shares closed at $164.47 yesterday.
Analyst Kulbinder Garcha believed that "resetting expectations is a positive, and secular issues are now being increasingly reflected in shares. Nevertheless, despite a forthcoming mainframe cycle, we remain concerned that the fundamental headwinds facing IBM are challenging and accelerating."
Garcha noted several issues with the company, "First, services backlog was down 7 percent and 3Q margins came in at 17.7 percent the lowest level in 2 years, breaking consistent improvement. Second, software revenues were down 2 percent as reported."
The report concluded that "IBM continues to face multiple issues to revenue growth including high mainframe exposure, negative cloud impact and weak IT spending."
The report assumed "2014/2015 revenues of $94.4bn/$88bn, down 5 percent/7 percent" and applied a 10x FCF of $12.64 per share for the $125 price target.
International Business Machines Corp. recently traded at $163.07, down 3.5 percent.
SinoCoking Coal and Coke Chemical Industries (NASDAQ: SCOK) shares jumped 43.66% to $3.38 as aboveground syngas facility commenced operations.
NewLink Genetics (NASDAQ: NLNK) shares climbed 18.91% to $34.90 after the company announced an exclusive worldwide licensing agreement for development of NLG919 and research collaboration for the discovery of next generation IDO/TDO inhibitors.
ShoreTel (NASDAQ: SHOR) shares rose 16.74% to $7.60 after Mitel Networks (NASDAQ: MITL) proposed to acquire ShoreTel for $8.10 per share in cash.
Apricus Biosciences (NASDAQ: APRI) gained 12.20% to $1.84 after the company reported that it has licensed US rights for Fispemifene, a Phase 2b ready asset, from Forendo Pharma for an upfront license fee of $12.5 million.
Cleco (NYSE: CNL) climbed 9.99% to $53.09 after the company agreed to be acquired by North American Investor Group led by Macquarie Infrastructure for $55.37 per share in cash.
Gannett Co (NYSE: GCI) shares rose 4.51% to $28.94 after the company reported better-than-expected profit for the third quarter.
Peabody Energy (NYSE: BTU) gained 4.08% to $11.48 after the company posted a narrower-than-expected loss for the third quarter.
Hasbro (NASDAQ: HAS) shares surged 2.53% to $55.22 after the company reported better-than-expected earnings for the third quarter.
Halliburton Company (NYSE: HAL) rose 1.16% to $53.21 after the company reported upbeat results for the third quarter and raised its quarterly dividend by 20%.
In a report published Monday, Bank of America analyst Sara Gubins reiterated an Underperform rating on ITT Educational Services, Inc. (NYSE: ESI), and raised the price target from $7.00 to $8.00.
In the report, Bank of America noted, “ESI shares rallied 131% over the past two trading days as investors are assigning lower going concern risk. ESI had $207mn in cash at 3Q14-end. It expects roughly $190mn in cash at year-end, after making $60-70mn in PEAKS related payments. After incorporating $90mn for the letter of credit, this leaves ~$100mn in unrestricted cash. This should be enough to largely mitigate liquidity concerns, in our view. We are lowering estimates on higher interest expense for consolidating PEAKS on balance sheet. We have kept revenue and margin assumptions largely unchanged.”
ITT Educational Services closed on Friday at $9.19.
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at email@example.com with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
There is lots of action in Southwest Airlines Co. November expiry call options today ahead of the air carrier’s third-quarter earnings report prior to the opening bell on Thursday. Among the large block trades initiated throughout the trading session, there appears to be at least one options market participant establishing a call spread in far out of the money options. It looks like the trader purchased a 4,000-lot Nov 37/39 call spread at a net premium of $0.40 apiece. The trade makes money if shares in Southwest rally 9.0% over the current price of $34.32 to exceed the effective breakeven point at $37.40, with maximum potential profits of $1.60 per contract available in the event that shares jump more than 13% to $39.00 by expiration. In September, the stock tou...
When forecasting investment returns, many individuals make the mistake of simply extrapolating recent returns into the future. Bull markets lead investors to expect higher future returns, and bear markets lead them to expected lower future returns. But the price you pay for an asset also has a great impact on future returns. Consider the following evidence:
The average historical P/E ratio for the market has been around 15. A study covering the period from 1926 through the second quarter of 1999 found that an investor buying stocks when the market traded at P/E ratios of between 14 and 16 e...
The S&P 500 got off to a reasonably good start following the pre-market Goldilocks inflation data (not too hot, not too cold), and retirees learned they would get a 1.7% Social Security COLA for 2015. The index hit its 0.41% intraday high about two hours after the open. It then began drifting lower with some accelerated selling the final hour. It closed with a -0.73% loss, just off its -0.74% intraday low, and snapping a four-day rally.
The popular press, always ready to explain market behavior (e.g., CNBC), seized on the gunfire near Canada's Parliament and the plunging price of oil as prime causes of the selling.
The yield on the 10-year Note closed at 2.25%, up 2 bps from yester...
The last 2 days have seen enormous volatility in the Saudi Riyal exchange rate, purportedly oil-related FX hedging programs as the SAR dropped to its lowest sicne Dec 2008, but the most extreme 'moves' were left to The Kingdon's top Muslim cleric. As The BBC reports, Sheikh Abdul Aziz al-Sheikh, the Grand Mufti of Saudi Arabia, exclaimed that Twitter is "the source of all evil and devastation". As the 12th most influential Muslim in the world, it perhaps matters that he says users were using Twitter to "promote lies, backbite and gossip and to slander Islam," but citizens of Saudi Arabia, who are some o...
Last week brought even more stock market weakness and volatility as the selloff became self-perpetuating, with nobody mid-day on Wednesday wanting to be the last guy left holding equities. Hedge funds and other weak holders exacerbated the situation. But the extreme volatility and panic selling finally led some bulls (along with many corporate insiders) to summon a little backbone and buy into weakness, and the market finished the week on a high note, with continued momentum likely into the first part of this week.
Despite concerns about global economic growth and a persistent lack of inflation, especially given all the global quantitative easing, fundamentals for U.S. stocks still look good, and I believe this overdue correction ultimately will shape up to be a great buying opportunity -- i.e., th...
Now that bitcoin has subsided from speculative bubble to functioning currency (see the price chart below), it’s safe for non-speculators to explore the whole “cryptocurrency” thing. So…is bitcoin or one of its growing list of competitors a useful addition to the average person’s array of bank accounts and credit cards — or is it a replacement for most of those things? And how does one make this transition?
With his usual excellent timing, London-based financial writer/actor/stand-up comic Dominic Frisby has just released Bitcoin: The Future of Money? in which he explains all this in terms most readers will have no tr...
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What do falling energy prices mean for the US consumer? Sober Look writes a brief yet thorough overview of the consequences of the correction in the price of crude oil. There are good aspects, particularly for the consumer, bad aspects, and out-right ugly possibilities. For more on this subject, read James Hamilton's How will Saudi Arabia respond to lower oil prices? In previous eras, Saudi Arabia would tighten the supply to help increase prices, but in this "game of chicken," the rules m...
Reminder: Pharmboy is available to chat with Members, comments are found below each post.
Well PSW Subscribers....I am still here, barely. From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.
First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices. Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment. Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer. For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...
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