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RBC Analyst On Marvell/Lenovo Rumor: 'I Guess It Wouldn't Surprise Me'

Courtesy of Benzinga.

Related MRVL
Nomura On Lenovo/Marvell Takeover Rumors: They 'Make Sense'
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Qualcomm Cut On China 'Revelation,' Lost Customer (Investor’s Business Daily)

A rumor that Marvell Technology Group Ltd. (NASDAQ: MRVL) will soon receive a $19 a share bid from Lenovo Group Ltd. (OTC: LNVGY) has the ring of plausibility, an analyst said Friday.

RBC Capital Markets analyst Doug Freedman told Benzinga that if Lenovo made an offer, "I guess it wouldn't surprise me."

Marvell closed Friday at $15.49, up more than 1 percent. The shares hit an intraday high of $15.77 shortly after the rumor emerged.

Freedman, who maintains a $21 target on Marvell, cautioned that the high number of shares held by company insiders "definitely creates a challenge" for any would-be acquirer.

Chief Executive Sehat Sutardja and President Weili Dai held a combined 13.5 percent stake as of the company's most recent proxy filing in May.

Greenlight Capital held an 8.7 percent stake and Kohlberg Kravis Roberts & Co. held 6.6 percent, according to the filing.

Freedman said Marvell declined to respond earlier this month to his inquiry about reports out of China that multiple parties wanted to invest in the company's mobile business.

"But to me, the 'no comment' was different from what we'd heard in the past," Freedman said. "There seemed to be a willingness to work with the Chinese."

Citing his $21 target, Freedman said "at $19, maybe that's a starting offer — if it's an offer at all."

Brianna Valleskey contributed to this report.

Latest Ratings for MRVL

Date Firm Action From To
Jan 2015 Standpoint Research Downgrades Buy Hold
Nov 2014 Deutsche Bank Maintains Hold
Nov 2014 Morgan Stanley Maintains Equal-weight

View More Analyst Ratings for MRVL
View the Latest Analyst Ratings

Posted-In: Doug Freedman RBC Capital MarketsAnalyst Color News Rumors Exclusives Analyst Ratings

Friday Morning Movers: Amazon Pops, Deckers Outdoor Plummets Following Earnings Results

Courtesy of Benzinga.

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Biogen Idec Q4 Net Nearly Doubles; Beats Views
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Intercept Pharmaceuticals Inc (NASDAQ: ICPT) +26% – Received therapy designation from FDA for Obeticholic Acid for NASH.

ManpowerGroup Inc. (NYSE: MAN) +25% – Reported favorable Q4 EPS., Inc. (NASDAQ: AMZN) +12.5% – Announced Q4 EPS, offered Q1 sales guidance.

QLogic Corporation (NASDAQ: QLGC) +9% – Reported Q3 EPS, offered Q4 guidance, upgraded to Outperform at BMO Capital.

Biogen Idec Inc (NASDAQ: BIIB) +6.7% – Released Q4 EPS.

Visa Inc (NYSE: V) +4.7% – Announced Q1 EPS.

Mastercard Inc (NYSE: MA) +3.7% – Reported Q4 EPS.

Deckers Outdoor Corp (NYSE: DECK) -17% – Announced Q3 EPS, lowered Q4 earnings guidance.

Align Technology, Inc. (NASDAQ: ALGN) -11% – Released Q4 EPS, downgraded to Market Perform at JMP Securities.

Posted-In: News Pre-Market Outlook Movers

JMP Securities Downgrades Align Technology To Market Perform

Courtesy of Benzinga.

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Align Technology (ALGN) Q4 2014 Results – Earnings Call Transcript (Seeking Alpha)

Analysts at JMP Securities downgraded Align Technology Inc. (NASDAQ: ALGN) from Market Outperform to Market Perform and removed the target price of $63.00.

Align Technology shares have dropped 1.26% over the past 52 weeks, while the S&P 500 index has surged 13.39% in the same period.

Align Technology’s shares fell 10.52% to $52.50 in pre-market trading.

Latest Ratings for ALGN

Date Firm Action From To
Jan 2015 JMP Securities Downgrades Market Outperform Market Perform
Jan 2015 Baird Upgrades Neutral Outperform
Oct 2014 Goldman Sachs Upgrades Neutral Buy

View More Analyst Ratings for ALGN
View the Latest Analyst Ratings

Posted-In: JMP SecuritiesDowngrades Analyst Ratings

Credit Suisse Reiterates Neutral Rating, Lowers Price Target On Kennametal Following Q2 Earnings

Courtesy of Benzinga.

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Kennametal (KMT) Q2 2015 Results – Earnings Call Transcript (Seeking Alpha)

In a report published Friday, Credit Suisse analyst Julian Mitchell reiterated a Neutral rating on Kennametal (NYSE: KMT), but lowered the price target from $41.00 to $34.00.

In the report, Credit Suisse noted, “Following Q2 earnings, we lower our EPS estimates, and our TP to $34 (from $41). In our report last August, we highlighted three items that we thought a new CEO should look to re-calibrate, and we heard clear evidence that all three are indeed a major focus for Don Nolan. Given uncertainty though on the timing of the self-help at KMT, and the potentially severe headwinds from the downturn in Mining and Oil & Gas markets in FY16, our rating remains Neutral.”

Kennametal closed on Thursday at $31.84.

Latest Ratings for KMT

Date Firm Action From To
Jan 2015 Jefferies Maintains Hold
Jan 2015 KeyBanc Downgrades Buy Hold
Nov 2014 Goldman Sachs Downgrades Neutral Sell

View More Analyst Ratings for KMT
View the Latest Analyst Ratings

Posted-In: Credit Suisse Julian MitchellAnalyst Color Price Target Analyst Ratings

Morgan Stanley: Q4 Earnings Are Coming In Line With Expectations

Courtesy of Benzinga.

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Alibaba Earnings Review: Shake It Off (Seeking Alpha)

A host of companies have disappointed investors by declaring worse-than-expected December quarter results, including big names like Microsoft Corporation (NASDAQ: MSFT), Caterpillar Inc. (NYSE: CAT) and Alibaba Group Holding Ltd (NYSE: BABA).

However, Adam Parker, chief U.S. equity strategist at Morgan Stanley, feels the earnings have come in-line with what he expected. Parker was on CNBC to discuss the quarterly earnings reported by companies and the stocks to avoid.

Are You Disappointed By The Sluggish Earnings Reported So Far?

"Actually no, the numbers are coming in about what we expected. They are obviously above the bottom of consensus expectations heading in. I think the good news is that you had nine weeks ago a bottom up numbers that looked like there will be 14 percent earnings growth this year, they have been called all the way down to 6 percent growth and I think 6 is about right."

He continued, "What's interesting is all 10 sectors in the market have seen downward revisions and to me there will be certainly places in the consumer and other areas with lower input cost that will see upside later in the year. So, I kind of like 6 percent earnings as a base case for this year and I think the numbers are coming in right about with what I expected."

Avoiding Currency Dependent Stocks

"I think everyone knows that currency is a problem," Parker said. "So, we are not recommending the areas that are hard to sell. We don’t like staples, we don't like machinery, we don't like chemicals. We are avoiding select tech and healthcare, we are not recommending any of those areas because you want to play that relative revisions games and I think that the currency is going to hurt."

Latest Ratings for BABA

Date Firm Action From To
Jan 2015 CRT Capital Maintains Buy
Jan 2015 Stifel Nicolaus Downgrades Buy Hold
Jan 2015 Tigress Financial Initiates Coverage on Buy

View More Analyst Ratings for BABA
View the Latest Analyst Ratings

Posted-In: Adam Parker Morgan StanleyAnalyst Color CNBC Analyst Ratings Media

Celgene's EPS Contain 'Few Surprises,' Baird Says

Courtesy of Benzinga.

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Celgene Corporation (NASDAQ: CELG) reported earnings on Thursday, and Baird analysts provided some commentary.

For the fourth quarter of 2014, the company posted non-GAAP EPS of $1.01, (versus consensus of $0.99, and Baird’s $1.01), and adjusted EPS for the full fiscal 2014 of $3.71 (versus consensus of $3.70, and Baird’s $3.72).

The company had already pre-released these results in early January. As Baird's report said, there were few surprises in the call.

However, some additional color on key worldwide product revenue figures was provided. The firm highlighted four points:

  • “Revlimid geographic breakdown. Total Q414 Revlimid revenue $1.322B consistent with pre-released number. US Revlimid revenue of $798M beat by $19M, but ROW Revlimid revenue missed by a similar amount.
  • Abraxane color. FY14 Abraxane revenue was pre-released at $848M, implying ~$236M for Q414, roughly in line with pre-existing consensus $237M.
  • Otezla looking good. Otezla's beat was also pre-released, with Q414 revenue ~$48M, ahead of consensus estimate $44M.
  • Nice quarter for Pomalyst. Pomalyst pre-released at ~$202M for Q414, a slight beat to pre-existing consensus $200M.”

Celgene’s management also commented on its guidance for product sales and adjusted EPS for fiscal 2015. Although they remain the same, at $9.0 billion -$9.5 billion and $4.60-$4.75, respectively, management said that the revenue guidance includes $100 million of negative F/X related impact.

Baird maintained an Outperform rating and a $139 price on Celgene. The target is explained as follows, “In that big-cap commercial biotechnology companies have recently traded on average between 20X and 30X current-year consensus EPS, we apply a multiple of 23 to our 2017 EPS estimate of $7.85, discounted back by 15%/year, to derive our 12-month price target of $139.”

Shares traded recently at $120.73.

Latest Ratings for CELG

Date Firm Action From To
Jan 2015 Deutsche Bank Maintains Buy
Jan 2015 JMP Securities Maintains Market Outperform
Jan 2015 Barclays Initiates Coverage on Equal-weight

View More Analyst Ratings for CELG
View the Latest Analyst Ratings

Posted-In: Abraxane Baird OTEZLA PomalystAnalyst Color Health Care Analyst Ratings General

Brian Sozzi Suggests Game Plan For Shake Shack To Succeed

Courtesy of Benzinga.

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As shares of Shake Shack Inc (NYSE: SHAK) began trading at a hefty premium versus its initial pricing, investors may begin to question of the nearly $700 million valuation for a chain that operates only 62 locations is justified.

Brian Sozzi of Belus Capital Advisors commented in an article on The Street that Shake Shack will face heavy competition but the restaurant operator could keep its stock hot if it follows three simple steps.

Step One: Preserve Its Unique Culture

Shake Shack's business model is its concept of “Enlightened Hospitably” which means “caring for each other, caring for our guests, caring for our community, caring for our suppliers and caring for our investors.”

Shake Shack's unique culture stands in contrast to that of McDonald's Corporation (NYSE: MCD) which has a reputation of offering employees low wages and unfair treatment in the workplace. According to Sozzi, Shake Shack will need to stay true to its commitment to its stakeholders at a time when shareholders will expect strong profits.

Step Two: Establish An Image Of Being A Lifestyle Brand

Shake Shack will need to continue adding more seasonal menu items for breakfast, lunch and dinner and expand to the supermarket aisles by selling its shakes, frozen burgers and French fries.

Sozzi believes that by doing so the company can replicate Starbucks Corporation's (NASDAQ: SBUX) brand image as it sells beverages and packaged coffees in supermarkets.

In addition, Shake Shack will need to hold additional events similar to its annual “Shacktoberfest” which consists of 10 days of special-edition beers, burgers and other treats to deliver an elevated profit level that is now expected by Wall Street.

Step Three: Deliver The Goods

The final step for the company is executing its plan.

According to Sozzi, investors are expecting “super-sized performance” from Shake Shack – but the company has lots of work ahead to secure more suppliers, preserve its employee culture and find success in new locations outside of Manhattan, New York.

Posted-In: Belus Capital Advisors Brian Sozzi fast casual Fast FoodAnalyst Color Restaurants Analyst Ratings General

Top Performing Industries For January 30, 2015

Courtesy of Benzinga.

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At 10:30 am, the Dow dropped 0.48% to 17,333.17, the broader Standard & Poor’s 500 index moved down 0.59% to 2,009.30 and the NASDAQ composite index slipped 0.39% to 4,665.33.

The industries that are still afloat in the market today are:

Catalog & Mail Order Houses: The industry gained 5.4% by 10:30 am. The top performer in this industry was Inc. (NASDAQ: AMZN), which gained 10.4%. reported stronger-than-expected fourth-quarter earnings.

Specialty Retail, Other: This industry rose 3.8% by 10:30 am ET. The top performer in this industry was Books-A-Million Inc. (NASDAQ: BAMM), which gained 49.5%. Anderson Family offered to buy Books-A-Million for $2.75 per share in cash.

Computer Peripherals: This industry jumped 2.8% by 10:30 am. The top performer in this industry was Synaptics Inc. (NASDAQ: SYNA), which rose 10.6%. Synaptics reported better-than-expected Q2 results and issued a strong Q3 revenue forecast.

Internet Information Providers: This industry moved up 2.6% by 10:30 am. The top performer in this industry was Google Inc. (NASDAQ: GOOGL), which gained 3.5%. Google announced weaker-than-expected financial results for the fourth quarter.

Posted-In: Top Performing IndustriesNews Intraday Update Markets Movers

Imperial Capital Gives A Lukewarm Outperform At JetBlue

Courtesy of Benzinga.

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Imperial Capital commented on JetBlue Airways Corporation (NASDAQ: JBLU) Friday and maintained an Outperform rating and $20 price target after the company beat Q4 estimates.

Analyst Bob McAdoo thought that the company’s new baggage fees, fare levels and a higher seat density would improve profitability. The new initiatives are expected to drive approximately $400 million in incremental operating income, but will not be fully implemented until 2018.

In the near-term, lower jet fuel prices “may represent approximately $750 million of incremental cost savings in 2015,” according to McAdoo. Management has indicated that fuel cost savings will be used to reduce balance sheet leverage with the aim of improving ROIC.

McAdoo added that he remains “somewhat cautious on announced new routes” including New York to Reno and San Francisco to Las Vegas, “but given current fuel prices, things may be ok.”

The firm estimated Q1 2015 EPS of $0.42, above consensus of $0.40, on revenue of $1.513 billion.

JetBlue Airways recently traded at $16.97, down 1.1 percent.

Latest Ratings for JBLU

Date Firm Action From To
Jan 2015 Barclays Maintains Equal-weight
Dec 2014 Bank of America Upgrades Underperform Buy
Nov 2014 Imperial Capital Maintains Outperform

View More Analyst Ratings for JBLU
View the Latest Analyst Ratings

Posted-In: Bob McAdoo imperial capitalAnalyst Color Analyst Ratings

Jefferies Downgrades Infosys To Underperform

Courtesy of Benzinga.

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Analysts at Jefferies downgraded Infosys Ltd. (NYSE: INFY) from Hold to Underperform.

The price target for Infosys has been lowered from $33.40 to $29.00.

Infosys shares closed at $35.14 yesterday.

Latest Ratings for INFY

Date Firm Action From To
Jan 2015 Jefferies Downgrades Hold Underperform
Jan 2015 Jefferies Maintains Hold
Oct 2014 Citigroup Downgrades Buy Neutral

View More Analyst Ratings for INFY
View the Latest Analyst Ratings

Posted-In: JefferiesDowngrades Analyst Ratings


Phil's Favorites

My Fortune columns so far...

Josh Brown has been writing columns for Fortune, which I cannot post here in there entirety, but his articles are always worth reading.

My Fortune columns so far…

Courtesy of 

I’m having a blast in my new role as Fortune columnist so far, just as I suspected I would when I first got the gig (see: About my new column at Fortune magazine from last October).

The stuff I’m doing there is about a very specific topic – the nexus between what happens on Wall Street and how it affects the real world (and vice versa). I’m getting ...

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results.Date Found: Friday, 16 January 2015, 09:55:47 PM

Click for popup. Clear your browser cache if image is not showing. Comment: Volatility Is back across all asset classes. Price discovery reverting to the mean.

Date Found: Saturday, 17 January 2015, 04:18:13 PM

Click for popup. Clear your browser cache if image is not showing. Comment: US Velocity of money, historic lows. $4.8 trillion on Fed balance. None of it getting to the masses. Deflation is at the door.

Date Found: Sunday, 18 January 2015, 10:44:09 PM

Click for popup. Clear your browser cache if image is not showing. Comment: Gold teasing...

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Zero Hedge

Socialist Exceptionalism

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

"In the minds of the statists, "Government Works Better" and 'things' work at the surface; but at the core, it's a disaster... The Americans that look to the government to 'save' them - and even gleefully thank the government for helping bail them out - fail to realize that it was the government that f##ked them in the first place..."

Simply put, "debt-financed socialism and corporatism isn't working" and a day of reckoning is coming...


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All About Trends

Mid-Day Update

Reminder: David 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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In the News: An ETF Rush to Bet on Insiders

Courtesy of Sabrient Systems and Gradient Analytics

( by Todd Shriber): "Betting on insider buying is again proving to be an efficacious strategy as the Direxion All Cap Insider Sentiment Shares (NYSEArca: KNOW) has been noticeably less bad than the S&P 500 to start 2015. Add to that, investors are warming to the merits of KNOW's insider sentiment strategy." [Editor's note: KNOW tracks the Sabrient Multi-cap Insider/Analyst Quant-Weighted Index (SBRQAM)]. Read article


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Market Shadows

What Would You Do?

What Would You Do?

Courtesy of Paul Price

Suppose you had the technical ability and raw materials to print up counterfeit dollars, euros or yen that were identical to the real things. Assume you could spend them as fast as you could create them with no fear of any repercussions.

Would you prudently print up only as much fresh currency as you needed for your current lifestyle? Would you create just a bit more than that to help relatives or those in need?

It is most likely you’d have your printing press running 24 hours a day, seven days a week. Becoming the richest person in the world would confer great power upon you.

You could rationalize this action because you plan to use the money for good purposes. Imagine the warm feeling you’d get by giving every person in America one million do...

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Swing trading portfolio - week of January 26th, 2015

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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Digital Currencies

Jitters After Bitcoin Exchange Suspends Services

So as I was saying yesterday (Bitcoin: The Biggest Clown Show In History?), Bitcoin has several obstacles on the path to potential success as an alternative currency. But I forgot to mention hacking and theft at Bitcoin exchanges and other technical problems. This is related to the lack of government backing and the fact that the value of Bitcoins is based entirely on confidence.  

Jitters After Bitcoin Exchange Suspends Services 


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2015 - Biotech Fever

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

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...

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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly.

Click here and sign in with your user name and password. 



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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...

more from Caitlin

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 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.

Thank you for you time!

FeedTheBull - Top Stock market and Finance Sites

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...

Learn more About Phil >>

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About Ilene:

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.

Market Shadows >>