Author Archive for Insider Scoop

BTIG Believes Chipotle Will Fully Recover From Safety Issues Eventually

Courtesy of Benzinga.

BTIG Believes Chipotle Will Fully Recover From Safety Issues Eventually

While Chipotle Mexican Grill, Inc. (NYSE: CMG) comps remain challenged, there are early signs of Chiptopia driving traffic, BTIG’s Peter Saleh said in a report. He maintained a Neutral rating on Chipotle, saying that the company would “eventually fully recover from its food safety issues.”

Chipotle reported its 2Q16 EPS at $0.87, short of the BTIG estimate of $1.15 and consensus expectation of $0.91. The shortfall was driven by weaker same-store sales, which declined 23.6 percent, with a 19.3 percent decline in traffic.

Although the results showed an improvement of 610 bps from the prior quarter, they were worse than expected and driven mostly by less discounting, analyst Peter Saleh mentioned.

Related Link: Chipotle Safety Concerns Continue To Hurt Comps In Q2

The comp estimates for 3Q16 and 4Q16 have been reduced from (12.5) percent to (18.0) percent and from 5.0 percent to (5.0) percent, respectively. The EPS estimates for 2016 and 2017 have been reduced from $5.03 to $3.01 and from $12.87 to $7.81, respectively, to reflect the sales outlook.

Trends Improving

July trends show a 200-300 bps improvement in comps. Comps are trending at a decline of about 20 percent in the first several weeks, with a decline of about 15 percent in traffic trends. Chiptopia registered 3.6MM users in July, accounting for 30 percent of transactions, being executed on the new rewards program, Saleh stated.

Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!

Latest Ratings for CMG

Date Firm Action From To
Jul 2016 Goldman Sachs Maintains Neutral
Jul 2016 Wedbush Maintains Underperform
Jul 2016 BTIG Research Maintains Neutral

View More Analyst Ratings for CMG


View the Latest Analyst Ratings

Posted-In: btig Peter SalehAnalyst Color Reiteration Restaurants Analyst Ratings General Best of Benzinga





Vetr Thinks Under Armour’s Future Is Bright

Courtesy of Benzinga.

The Vetr community is very bullish on Under Armour Inc (NYSE: UA). Although charts may say the value of the athletic wear company’s shares have fallen 46.86 percent year-to-date, it simply split shares in early April and didn’t hurt investors nearly as much money as perceived. The Vetr and professional analysts both like Under Armour’s chances going forward.

See how crowd sourced ratings can help make predictions in the market?

Vetr members have given Under Armour a Hold rating and a $44.06 price target. This price target greatly pales in comparison to the $69.60 price target given by professional analysts in the market.

Of all the Vetr raters, 72.7 percent think that traders and investors should go in on Under Armour, while 18.2 percent think that traders and investors should sell the stock.

See Vetr’s full analysis on Under Armour here.

Posted-In: VetrAnalyst Color Crowdsourcing Opinion Economics Analyst Ratings General





Visa Q3 Results Top Street Estimates, But Are Exactly What Argus Expected

Courtesy of Benzinga.

Visa Q3 Results Top Street Estimates, But Are Exactly What Argus Expected

Argus analyst Stephen Biggar has raised the estimates and target price on Visa Inc (NYSE: V) after it reported better-than-expected third-quarter earnings.

The company’s third-quarter adjusted EPS of $0.69, down 7 percent from $0.74 a year earlier, but $0.03 ahead of the consensus as both payment volume and processed transactions accelerated from the second quarter pace. The results were in line with Argus’ “more optimistic expectations.”

Visa maintained fiscal 2016 guidance for 7–8 percent annual revenue growth (constant dollar), and management sounded optimistic on several trends into the second half of the year.

“We believe that Visa has several catalysts to improve its valuation,” Biggar explicated.

Related Link: Digging Into PayPal’s Q2 Earnings

The analyst expects cross-border fees to improve on renewed currency volatility, while several recent deals, including Costco Wholesale Corporation (NASDAQ: COST) and USAA, will begin to provide results in the second half of 2016.

Biggar noted that Visa’s payment volumes should rise due to improving global economic conditions, the continued transition from cash to plastic and rewards program benefits.

In addition, the Visa Europe acquisition creates a company with payment volume of $6.5 trillion (up 33 percent from the volume of Visa Inc. alone) and 2.9 billion cards in force (up 21 percent). The analyst still expects the deal to provide earnings accretion in the first year.

Further, the analyst noted, “[T]he market for payment processors is far from saturated given that 85 percent of the world’s retail transactions are still done with cash and checks.”

“We expect Visa’s earnings to grow at an average 13 percent rate from fiscal 2015 to 2017, which is enviable for a large-cap stock. Even in the absence of P/E multiple expansion, we believe that Visa shares are a compelling investment,” Biggar continued.

The analyst raised his fiscal 2016 EPS estimate to $2.90 from $2.87, and hiked his fiscal 2017 EPS estimate to $3.33 from $3.18. Further, Biggar expects…
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Technical Alert: Street Ignores 595K Offering Price At $6.75 In Ocean Power Technologies

Courtesy of Benzinga.

  • $15.65 – Wednesday high (highest level since July 2014)
  • $14.66 – Thursday high
  • $13.92 – Wednesday close (highest close since July 2014)
  • $11.73 – Intraday high as of 11:54 AM
  • $11.67 – Current price as of 11:54 AM
  •  $7.45 – Intraday low off the open as of 11:54 AM
  •  $6.75 – Offering price of 595K shares

If content like this is useful to your trading/investing strategy, please email feedback@benzinga.com with the headline to let us know!*

Posted-In: Technicals Movers Trading Ideas





Citi Resumes Coverage Of Williams Companies, Williams Partners

Courtesy of Benzinga.

Citi has resumed coverage of Williams Companies Inc (NYSE: WMB) and Williams Partners LP (NYSE: WPZ) with Neutral ratings.

The brokerage expects expect Williams Partners to cut its distribution to $0.50/quarter, and Williams Companies to cut its dividend to $0.20/quarter, which represent sequential reductions of 41 percent and 69 percent, respectfully.

“We believe the Williams’ complex relatively inexpensive valuation is balanced by a need for reduced payouts and balance sheet right-sizing,” analyst Faisel Khan wrote in a note.

Williams Partners failed to meet its $1 billion plus asset sales target in the first half of 2016 to fund its 2016 growth capital budget of $2.1 billion.

“We believe a distribution cut would provide much needed flexibility and allow WPZ to maintain its investment grade credit rating,” Khan noted.

Further, the analyst highlighted that Chesapeake contracts represent a challenge and a possible opportunity. Williams Partners generates about 20 percent of its EBITDA from Chesapeake Energy Corporation (NYSE: CHK) on a trailing basis.

“Counterparty risk has weighed on WPZ units over the course of the last year, and we believe there is mutual interest in finding a win-win solution for both parties. We believe swapping the value of the Barnett MVC payments for CHK stock could be an opportunity for CHK and WPZ,” Khan continued.

On the corporate governance front, the letters of resignation from the activist board members earlier this month were critical of current management. Furthermore, the resignation of other Board members also cast a level of doubt over WMB’s management team.

“We believe the next shareholder meeting in November will be critical for WMB investors. Electing and proposing a slate of directors with industry experience and a track record of management/capital discipline…
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Daiwa Downgrades GM To Neutral, Says Global Performance Is Unstable

Courtesy of Benzinga.

Daiwa Downgrades GM To Neutral, Says Global Performance Is Unstable

Daiwa Capital Markets’ Automobile analyst Jairam Nathan downgraded shares of General Motors Company (NYSE: GM) in a research report on Thursday on expectations the automaker’s earnings will decline from its current levels through 2017.

Related Link: General Motors Shares See Downside Following Strong Q2 Results

Expectations, Estimates And Justification

Nathan acknowledged that General Motors “handily” exceeded expectations in its second-quarter print and raised its 2016 outlook. However, the company’s upwardly revised earnings-per-share guidance of $5.50 to $6.00 implies its earnings will actually decline sequentially.

Nathan added that he expects further declines in General Motors’ earnings in 2017 due to a full year of negative impact in the U.K. due to the Brexit vote. He added that prior tailwind effects of volume and pricing are “subsiding” in North America as “demand momentum slowdown.”

With that said, Nathan is now expecting General Motors to earn $5.80 per share for the full fiscal year. The estimate implies “limited earnings outperformance potential,” which justifies his downgrade to Neutral from Outperform although a $31 price target remains unchained.

The analyst’s price target assigns equal weights to a $36 P/E-based valuation (7x to 2017 estimated earnings per share) and $26 free cash flow valuation ($2 billion in free cash generation across a cycle).

Full ratings data available on Benzinga Pro.

Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!

Latest Ratings for GM

Date Firm Action From To
Jul 2016 Citigroup Maintains Buy
Jun 2016 Piper Jaffray Initiates Coverage on Overweight
May 2016 Citigroup Maintains Buy

View More Analyst Ratings for GM


View the Latest Analyst Ratings

Posted-In: Daiwa Capital Markets General Motors General Motors Brexit General Motors Earnings GMAnalyst Color Downgrades Analyst Ratings Best of Benzinga





While Intel’s EPS Goes Up, Its Multiple Doesn’t

Courtesy of Benzinga.

While Intel's EPS Goes Up, Its Multiple Doesn't

Intel Corporation (NASDAQ: INTC) reported its C2Q revenue in line with and EPS above the consensus, while reiterating its CY16 implied EPS guidance at $2.50, above the consensus but in line with the estimate.

Credit Suisse’s John W. Pitzer maintains an Outperform rating on the company, with a price target of $40.

C2Q Results

Pitzer mentioned, however, that the C2Q EPS beat was once again of lower quality, while the DCG business delivered 4.5 percent year-on-year growth, failing to re-accelerate for the third consecutive quarter.

The analyst also noted that the restructuring messaging was “a bit confusing — one quarter after committing to $1.4 billion in annualized savings, INTC raised CY16 OpEx by $100 million.”

Related Link: Intel Has 10% Upside Following Q2 Earnings, According To Brean

Although the losses at NSG increased from $95 million to $224 million quarter-on-quarter, Pitzer stated that the positive during C2Q outweighed the disappointments.

C3Q Guidance

Intel guided to C3Q at the high end of seasonality, and Pitzer believes DCG growth has seen a trough and would reaccelerate to over 15 percent in 2H.

In addition, PC demand appears to be stabilizing, although the analyst believes the TAM expansion story is still not well understood.

Pitzer also pointed out there would be multiple product drivers in CY17, including XPoint, Purely, RSD and Silicon Photonics.

The CY16 and CY17 EPS estimates have been raised from $2.40 to $2.50 and from $2.70 to $2.75, respectively.

Full ratings data available on Benzinga Pro.

Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!

Latest Ratings for INTC

Date Firm Action From To
Jul 2016 Credit Suisse Maintains Outperform
Jul 2016 Brean Capital Maintains Buy
Jul 2016 Morgan Stanley Maintains Underweight

View More Analyst Ratings for INTC


View the Latest Analyst Ratings

Posted-In: Credit Suisse John W. PitzerAnalyst Color Long Ideas Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga





Exxon Mobil To Buy InterOil In Transaction Valued Over $2.5 Billion

Courtesy of Benzinga.

Exxon Mobil To Buy InterOil In Transaction Valued Over $2.5 Billion

Exxon Mobil Corporation (NYSE: XOM) and InterOil Corporation (USA) (NYSE: IOC) disclosed that they struck an agreement by which the former would buy the latter for a total transaction value of over $2.5 billion. The oil firm would buy all of the outstanding shares of InterOil for $45 a share in addition to cash payment based on Elk-Antelope resource size.

The oil firm indicated that the number of shares paid per share of InterOil would be calculated based on the volume weighted average price (VWAP) of ExxonMobil shares in a measuring period of 10 days.

Related Link: The Future Of Big Oil Isn’t Necessarily Oil

Exxon Mobile said a Contingent Resource Payment (CRP) would involve an additional cash payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) gross resource certification of the Elk-Antelope field above 6.2 tcfe subject to a maximum of 10 tcfe.

The company added that the CRP would be paid on the completion of the interim certification process in line with the Share Purchase Agreement with Total SA. That means it would include the Antelope-7 appraisal well, scheduled to be drilled later in the current year. The company indicated that the CRP would not be transferrable and would not be listed on any exchange.

Exxon Mobil’s chairman and CEO, Rex Tillerson, commented, “This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea.” He added, “InterOil’s resources will enhance ExxonMobil’s already successful business in Papua New Guinea and bolster the company’s strong position in liquefied natural gas.”

Posted-In: News M&A Best of Benzinga





D.A. Davidson: Lakeland Financial Deserves To Trade At A Premium To Its Peers

Courtesy of Benzinga.

D.A. Davidson: Lakeland Financial Deserves To Trade At A Premium To Its Peers

D.A. Davidson’s Kevin K. Reevey believes Lakeland Financial Corporation (NASDAQ: LKFN) deserves to trade at a premium to peers, given the company’s consistently above-average profitability, leading position across some of Indiana’s most attractive markets and robust credit quality.

Reevey initiated coverage of the company with a Neutral rating and price target of $51.

High Performing Company

“The management team of LKFN has a built a high performing full service relationship oriented community bank catering to the banking and financial needs of businesses and individuals in its markets,” the analyst mentioned.

Related Link: D.A. Davidson Says First Merchants Trading At 11% Discount To Its Peers

Reevey believes Lakeland Financial will continue to deliver ROA and ROE of more that 1.20 percent and 12.0 percent, respectively, driven by “thoughtful and deliberate” organic growth, “laser” focus on client needs and building long term customer relationships.

Well Positioned

According to the D.A. Davidson report, “Lakeland Financial is one of the top five players in some of the Hoosier state’s best markets, which include Fort Wayne, Warsaw, Elkhart and Indianapolis.”

Population growth in these markets is expected to be among the fastest in Indiana over the next five years.

The leading industries in Fort Wayne are manufacturing and healthcare, while in Warsaw, the orthopedic and medical device sectors are likely to be the key economic growth engines.

In addition, Elkhart is expected to continue to attract suppliers and manufacturers.

“Given LKFN’s market leadership position in these markets, we believe the company is well positioned to capitalize on these trends,” the analyst added.

Full ratings data available on Benzinga Pro.

Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!

Latest Ratings for LKFN

Date Firm Action From To
Jul 2016 DA Davidson Initiates Coverage on Neutral
Jun 2016 Stephens & Co. Downgrades Overweight Equal-weight
Dec 2015 Raymond James Downgrades Outperform Market Perform

View More Analyst Ratings for LKFN


View the Latest Analyst Ratings

Posted-In: D.A. Davidson Kevin K. ReeveyAnalyst Color Price Target Initiation Analyst Ratings





Top Performing Industries For July 21, 2016

Courtesy of Benzinga.




At 10:30 am, the Dow fell 0.09 percent to 18,578.49, the broader Standard & Poor’s 500 index moved down 0.01 percent to 2,172.97 and the NASDAQ composite index climbed 0.07 percent to 5,093.33.

The industries that are supporting the market today are:

  • Multimedia & Graphics Software: This industry gained 3.8 percent by 11:00 am. The top stock within the industry was Gravity Co., LTD. (ADR) (NASDAQ: GRVY), which gained 20 percent. Gravity shares have climbed 21.51 percent over the past 52 weeks, while the S&P 500 index has gained 2.54 percent in the same period.
  • Electronics Stores: This industry rose 2.2 percent by 10:30 am ET. The top performer in this industry was Conn’s Inc (NASDAQ: CONN), which gained 6 percent. Conn’s shares have dropped 81.35 percent over the past 52 weeks, while the S&P 500 index has gained 2.54 percent in the same period.
  • Industrial Equipment & Components: The industry gained 1.7 percent by 10:30 am. The top performer in this industry was Cemtrex Inc (NASDAQ: CETX), which gained 6.2 percent. Cemtrex shares have surged 53.08 percent over the past 52 weeks, while the S&P 500 index has gained 2.54 percent in the same period.
  • Rental & Leasing Services: This industry moved up 1.6 percent by 10:30 am. The top performer in this industry was United Rentals, Inc. (NYSE: URI), which rose 13.4 percent. United Rentals posted upbeat Q2 earnings.

Posted-In: Top Performing IndustriesNews Intraday Update Markets Movers





 
 
 

Zero Hedge

Koch Brothers Now Supporting "Often Confused" Hillary Clinton

Courtesy of ZeroHedge. View original post here.

Authored by Eric Zuesse,

On July 20th, a Republican U.S. Senator lost his main financial backers for having urged Republicans to vote for Donald Trump instead of for Hillary Clinton.

The Koch brothers speak with their words, which can’t be trusted, but they also speak with their money, their investments, which are always honest expressions of their actual beliefs and desires. This time, the Kochs spoke with their money, just a da...



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Phil's Favorites

Honeywell Cuts Guidance, Boeing Gives 60-Day Notices

Courtesy of Mish.

This week, Boeing announced layoffs and Honeywell cut guidance. This was expected given my July 17 article Honeywell Internal Email Shows Airplane Boom Time Over, More Layoffs Coming.

Boeing Gives 60-Day Notices

Please consider Boeing Employees Receive 60-Day Notices As Possible Layoffs Loom.

Sixty-day notices of “possible layoffs” were handed out to Boeing employees on Friday, a company spokesperson announced.

Details of exactly how many employees received such notices have not been released. However, spokesperson Je...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Gasoline Prices Around the World: The Real Cost of Filling Up (Bloomberg)

The price of gas is on the rise again—up five percent globally in the last three months. But cost per gallon alone doesn’t give a complete picture of how big a bite gasoline takes out of an average driver’s paycheck. We ranked 61 countries by three economic measures to see who has the most affordable gas, and who feels the most pain at the pump.

BofA Trading Tops Estimates as Moynihan Vows Deeper Cuts (Bloomberg)

Bank of America Corp. posted higher profit in each of...



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Chart School

World Markets Weekend Update: The Global Rally Moderates

Courtesy of Doug Short's Advisor Perspectives.

The global rally in equities Moderated last week. The average gain of the eight indexes on our world watch list was a respectable 0.41%, down from the previous week's steroidal 3.87% average. Hong Kong's Hang Seng was the top performer with a 1.41% advance. At the other end, the chronic laggard Shanghai Composite fell 1.36%.

A Closer Look at the Last Four Weeks

The tables below provide a concise overview of performance comparisons over the past four weeks for these eight major indexes. We've also included the average for each week so that we can evaluate the performance of a specific index relative to the overall mean and better understand weekly volatility. The colors for each index name help us visualize the compara...



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ValueWalk

Relypsa Inc (RLYP) Soars On Galenica Bid

By Jacob Wolinsky. Originally published at ValueWalk.

Relypsa Inc (NDAQ:RLYP) — to be acquired by Galenica AG (VTX:GALN) for $32 per share in cash is soaring this morning up about 58 percent at the time of this writing in early morning. On the other hand shares of Galenica are down on the announcement by about 8 percent. What are the details of the deal? Here is what the sell side analysts are saying about the pharma news.

Relypsa Inc (NDAQ:RLYP) bid – analysts react

Cantor Fitzgerald

Relypsa will be acquired by Galenica for $32 per share, a 59% premium over the last closing price. We have thought that Relypsa would likely be acquired at some point, given the opportunity to grow Veltassa to be a significant commercial brand, ...



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Kimble Charting Solutions

Doc Copper going to peak again at 200 Day moving ave?

Courtesy of Chris Kimble.

Doc Copper is often viewed as a leading indicator, for global growth or lack of.

The 200 day moving average is often viewed as the line in the sand to determine if an asset is in an up or down trend.

Is Doc Copper climbing above its 200 day moving average a good or bad sign?

Below looks at Doc Copper over the past decade with the 200 MA applied.

CLICK ON CHART TO ENLARGE

Copper peaked in 2011 and since, has continued to create a series of ...



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Digital Currencies

Demystifying the blockchain: a basic user guide

 

Demystifying the blockchain: a basic user guide

By Philippa Ryan, University of Technology Sydney

Companies around the world are exploring blockchain, the technology underpinning digital currency bitcoin. In this Blockchain unleashed series, we investigate the many possible use cases for the blockchain, from the novel to the transformative.

Most people agree we do not need to know how a television works to enjoy using one. This is true of many existing and emerging technologies. Most of us happily drive cars, use mobile phones and send emails without knowing how they work. With this in mind, here is a tech-free user guide to the blockchain - the technology infrastructure behind bitcoin...



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OpTrader

Swing trading portfolio - week of July 18th, 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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Mapping The Market

No wonder Saudis are selling as much as they can!

Courtesy of Jean-Luc

We are getting much more energy efficient – no wonder Saudis are selling as much as they can! Who wants to be the one with trillions of dollars of oil in the ground unwanted:

http://arstechnica.com/science/2016/07/the-amount-of-energy-needed-to-run-the-worlds-economy-is-decreasing-on-average/#p3

...

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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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Biotech

This Is Why Biotech Stocks May Explode Again

Reminder: Pharmboy and Ilene are available to chat with Members.

Here's an interesting article from Investor's Business Daily arguing that biotech stocks are beginning to recover from their recent declines, notwithstanding current weakness.

This Is Why Biotech Stocks May Explode Again

By 

Excerpt:

After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.

...



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Promotions

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!

PhilStockWorld.com 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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Help One Of Our Own PSW Members

"Hello PSW Members –

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 jennifersurovy@yahoo.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.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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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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