Archive for the ‘Benzinga’ Category

10 Stocks You Should Be Watching Today

Courtesy of Benzinga.

10 Stocks You Should Be Watching Today

Some of the stocks that may grab investor focus today are:

  • Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) reported better-than-expected earnings for its third quarter and lifted its outlook for the year. Ulta Salon shares climbed 5.87 percent to $272.51 in the after-hours trading session.
  • Smith & Wesson Holding Corp (NASDAQ: SWHC) reported upbeat results for its second quarter and issued a weak outlook for its third quarter. Smith & Wesson shares dropped 5.34 percent to $22.70 in the after-hours trading session.
  • Five Below Inc (NASDAQ: FIVE) reported stronger-than-expected earnings for its fiscal third quarter. Five Below shares surged 11.13 percent to $44.32 in the after-hours trading session.
  • Wall Street expects Big Lots, Inc. (NYSE: BIG) to report a quarterly loss at $0.01 per share on revenue of $1.12 billion. Big Lots shares rose 1.44 percent to $51.50 in after-hours trading.
  • G-III Apparel Group, Ltd. (NASDAQ: GIII) posted weaker-than-expected Q3 results and lowered its FY17 outlook. G-III Apparel shares tumbled 9.78 percent to $24.25 in the after-hours trading session.

Find out what’s going on in today’s market and bring any questions you have to Benzinga’s PreMarket Prep.

  • Howard Schultz will be stepping down as chief executive officer of Starbucks Corporation (NASDAQ: SBUX). Kevin Johnson will takeover CEO duties on April 3, 2017. Starbucks shares fell 3.26 percent to $56.60 in the after-hours trading session.
  • Workday Inc (NYSE: WDAY) posted better-than-expected results for its third quarter on Thursday. Workday shares dropped 11.76


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Workday’s Lowered Outlook Reflects Increasing Uncertainty In Business

Courtesy of Benzinga.

Workday's Lowered Outlook Reflects Increasing Uncertainty In Business

Workday Inc (NYSE: WDAY) reported its FQ3 results ahead of the consensus, estimates and guidance, while issuing weak guidance for FQ4 and FY 2018.

Brean Capital’s Yun Kim maintains a Sell rating on the company, with a price target of $62.

Rising Uncertainty

“What’s perhaps surprising to us is how much a few slipped deals in the first month of the quarter is impacting its business going forward,” Kim mentioned.

Since Workday has not raised its FY 2017 subscription revenue guidance, despite the better-than-anticipated subscription billings over the past two quarters, the analyst believes some investors might question the quality of billings.

“We also highlight the increasing seasonality in its business going forward as it guided to surprisingly low 1Q18 subscription billings growth in the low teens, which implies a sequential decline in its deferred revenue,” Kim stated.

Given the incremental uncertainty and variability in the company’s business, Workday’s ability to execute on large cross-sell opportunity related to add-on products becomes crucial.

Waiting For Traction

Although this represents a significant and incremental growth opportunity, Kim believes it might also lead to disruption if not managed properly, since sales might become less focused on acquiring new accounts.

“Fundamentally, our checks continue to indicate a lackluster demand environment for WDAY Financials in the large enterprise market,” the analyst noted, while adding that “the stock’s current high valuation reflects gaining sizable market share in the $27 billion financials app market, which requires strong traction in the enterprise market.”

Unless such traction emerges, the risk/reward profile would not be favorable at the current valuation levels.

At last check, Workday shares were down 14.89 percent in Friday’s pre-market session, trading at $69.40.

Latest Ratings for WDAY

Date Firm Action From To
Oct 2016 Canaccord Genuity Maintains Buy
Sep 2016 Oppenheimer Maintains Outperform
Sep 2016 Brean Capital Maintains Sell

View More Analyst Ratings for WDAY


View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Guidance Short Ideas Reiteration Analyst Ratings Movers Best of Benzinga





Wall Street’s M&A Chatter From December 1

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday December 1, 2016.

Parker to Acquire CLARCOR for $4.3B Cash

The Deal:

Parker-Hannifin Corp (NYSE: PH) and CLARCOR Inc. (NYSE: CLC) announced that Parker has agreed to acquire CLARCOR for $83.00 per share in cash, or approximately $4.3 billion in cash. The transaction has been unanimously approved by the Board of Directors of both companies and is expected to be completed by or during Q1 of Parker’s FY 2018.

CLARCOR closed at $82.58 on Thursday, up 17.22 percent.

KongZhong Corporation Enters into Definitive Agreement for Going Private Transaction Of ~$299M Cash

The Deal:

KongZhong Corporation (ADR) (NASDAQ: KZ) announced it has entered into a definitive agreement and plan of merger with Linkedsee Limited and Wiseman International Limited to be acquired in a transaction valued at approximately $299 million. Under the agreement, each ADS will be cancelled in exchange for the right to receive $7.55 in cash.

KongZhong closed at $6.78 on Thursday, up $0.12.

Cummins to Explore Sale of Filtration Unit

The Rumor:

Cummins Inc. (NYSE: CMI) is considering the sale of its unit business that manufactures filters and coolants, according to sources as reported by Reuters. The unit could be worth more than $1.5 billion, sources said.

Cummins is said to have hired an investment bank to assist in an auction process. A Cummins spokeswoman declined comment on the rumor.

Cummins closed Thursday at $142.63, up $0.85.

Alibaba Said to be in Talks to Acquire Snapdeal

The Rumor:

Alibaba Group Holding Ltd (NYSE: BABA) is said to be in talks to acquire India’s Snapdeal, according to a report from Factor Daily. The report cites three sources as saying a deal can happen if a price is agreed upon for the Amazon competitor.

Reports of of a potential Snapdeal acquisition follow a stall in talks with Flipkart.

Reuters later reported that Alibaba was not in talks to buy Snapdeal.

Alibaba closed Thursday at $89.69, down 4.42 percent.

Posted-In: News Rumors M&A





Quarterly Results From Ulta Beauty Defy Gravity Again

Courtesy of Benzinga.

Quarterly Results From Ulta Beauty Defy Gravity Again

Oppenheimer said Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) remains its top pick following its “gravity-defying” quarterly results.

Ulta reported a blow-out quarterly result across all metrics and upbeat guidance. In particular, comps were 16.7 percent, suggesting no slowdown in trends over Black Friday.

Comp sales increased 16.7 percent, easily topping a 14.8 percent consensus figure and management’s updated guidance for a 14–15 percent increase provided in mid-October.

In Review

  • Q3 EPS: $1.40 vs. estimated $1.37.
  • Q3 sales: $1.131 billion vs. estimated $1.11 billion.
  • Q3 comps: Up 16.7 percent.
  • Q3 transactions: Grew 11.1 percent.
  • Q3 average ticket: Up 5.6 percent.
  • Q4 EPS guidance: $2.08–$2.13 vs. estimated $2.05.
  • Q4 sales guidance: $1.516 billion–1.541 billion vs. estimated $1.51 billion.
  • Q4 comp growth guidance: 12–14 percent.
  • FY 2016 guidance: Raised.
  • FY 2016 comps guidance: Up 13–15 percent.
  • FY 2016 EPS growth: In high-20-percent range.

Commentary

“The ULTA management team continues to execute flawlessly in capitalizing on strong beauty trends and today’s results are another reminder why shares trade at more than 33x forward estimates,” analyst Rupesh Parikh wrote in a note.

Parikh has an Outperform rating on Ulta shares, with a price target of $300.

At last check, shares of Ulta Beauty were down 1.02 percent at $254.78.

Posted-In: Analyst Color Earnings Long Ideas News Guidance Reiteration Analyst Ratings Movers





Technical Alert: Twilio Lower For Sixth Time In Last Seven Sessions

Courtesy of Benzinga.

  • $31.87 – Thursday close
  • $31.74 – Intraday high as of 11:48 AM
  • $31.27 – Current price as of 11:48 AM
  • $30.92 – Intraday low as of 11:48 AM
  • $30.72 – November 10 low
  • $30.30 – November 9 low

Posted-In: Technicals Intraday Update Movers Trading Ideas





G-III Post-Earnings Move Could Be Driven By Short Squeeze

Courtesy of Benzinga.

G-III Post-Earnings Move Could Be Driven By Short Squeeze

G-III Apparel Group, Ltd. (NASDAQ: GIII) shares were soaring higher by more than 8.4 percent on Friday on extremely heavy volume. After initially dipping as low as $24.42 following the open, the stock has surged as high at $29.63.

G-III manufactures a range of apparel products and owns popular brands such as Donna Karan, DKNY and Vilebrequin.

Q3 And Heavy Vol

The heavy volume is no surprise following the company’s Q3 earnings release on Thursday, but the stock’s direction is.

G-III reported weaker-than-expected Q3 earnings and slashed its fiscal 2017 guidance.

According to shortsqueeze.com, G-III currently has an extremely high short percent of float at 14.0 percent.

The Next Big Short (Squeeze)?

Short squeezes and potential short squeezes have drawn a lot of attention in recent weeks following the incredible squeeze in shipping stock DryShips Inc. (NYSE: DRYS). The shocking squeeze sent shares of DryShips from below $4 to above $100 and then back below $7 within a matter of days.

Based on Friday’s trading action, G-III could be the next under-the-radar short-squeeze stock.

Many retail clothing and apparel stocks have struggled in 2016, including G-III, Ralph Lauren Corp (NYSE: RL) and VF Corp (NYSE: VFC). Short sellers have seized the opportunity to capitalize on the weakness in G-III stock, which is down 34.5 percent in 2016.

Stone Energy currently has 45.7 million total shares and nearly 5.8 million held short with 7.9 days to cover.

Image Credit: By SPERA.de Designerschuhe, Taschen und Accessoires from Deutschland [CC BY 2.0], via Wikimedia Commons

Posted-In: Apparel DKNY Donna Karan retailNews Short Sellers Movers Trading Ideas Best of Benzinga





Technical Alert: Ford Finally Has A Good Day

Courtesy of Benzinga.

  • $12.88 – July 29 high
  • $12.86 – July 28 high
  • $12.80 – Intraday high as of 12:06 PM
  • $12.70 – Current price as of 12:06 PM
  • $12.18 – Intraday low as of 12:06 PM
  • $11.96 – Wednesday close

Posted-In: Technicals Intraday Update Movers Trading Ideas





Nutanix Impresses With First Reported Quarter, But Current Valuation Still Daunting

Courtesy of Benzinga.

Kulbinder Garcha of Credit Suisse reiterated his Outperform rating and $38 price target on shares of Nutanix Inc (NASDAQ: NTNX), whose first quarterly report as a public company showed better-than-expected results, with second quarter guidance also topping consensus.

The key driver was billings, which grew 87 percent to $240 million on outperformance of the Federal sector and a few large OEM deals.

“We believe a sizable TAM, an effective sales motion, and a well-considered business model that relies upon software IP should lead to strong, sustained financial performance,” Garcha wrote in a note.

Garcha pointed out increasing software contribution and estimates software has contributed about 8.5 percent of total revenues this quarter, 1 percent higher than the previous quarter.

Over long term, the analyst expects software contribution to 33 percent, supporting gross margins above 70 percent over time, with the help of OEM deals with Dell and Lenovo and MITF arrangements with Super Micro Computer, Inc. (NASDAQ: SMCI) and Cisco Systems, Inc. (NASDAQ: CSCO).

Garcha also highlighted Nutanix’s unique technological advantage in the form of hyperconvergence, while the cost savings and improved agility should grow the end-market opportunity.

“We believe the company’s proven sales model coupled with strong customer growth will drive robust revenue growth to $764mn/$1.2bn in FY17/FY18 (72%/51% yoy),” Garcha continued.

However, the company’s current valuation is high. In fact, Garcha believes shares could touch as much as $49 in an upside scenario.

“We acknowledge there could be meaningful risk in near to medium term, as the stock is highly valued and market will closely watch its growth profile and margin dynamics,” Garcha added.

Despite strong results, shares of Nutanix were trading in the red. At last check, they fell 2.96 percent to $33.08.

Latest Ratings for NTNX

Date Firm Action From To
Oct 2016 Baird Initiates Coverage On Outperform
Oct 2016 William Blair Initiates Coverage On Outperform
Oct 2016 Needham Initiates Coverage On Buy

View More Analyst Ratings for NTNX


View the Latest Analyst Ratings

Posted-In: Credit Suisse Kulbinder GarchaAnalyst Color Price Target Reiteration Analyst Ratings





Technical Alert: Gold Futures Make New Low For Move And Rebound

Courtesy of Benzinga.

  • $1196.80 – Current high as of 12:11 PM
  • $1190.80 – Tuesday close
  • $1175.50 – Current price as of 12:11 PM
  • $1172.80 – November 25 low
  • $1171.30 – Current low as of 12:11 PM

Posted-In: Technicals Commodities Options Intraday Update Markets Movers Trading Ideas





Materials Mavens: Sector ETFs To Embrace

Courtesy of Benzinga.

Materials Mavens: Sector ETFs To Embrace

Underscoring this year’s renaissance in cyclical sectors, the Materials Select Sector SPDR (NYSE: XLB) is up more than 15 percent, a showing that is good for third among the sector SPDR exchange-traded funds. The two SPDRs outpacing XLB this year are cyclical funds, those tracking the energy and industrial sectors.

Commodities And Materials

Commodities are seen as sensitive to U.S. interest rates, but the materials sector is not as inversely correlated to rates as, say, telecom or utilities. As a cyclical sector, materials can actually perform well if the Federal Reserve raises interest rates because that would be a sign the Fed is confident the economy is strong enough to endure higher borrowing costs.

Some analysts are increasingly bullish on the materials sector.

“CFRA’s Investment Policy Committee raised its weighting on the materials sector to Overweight from Marketweight last week. Sam Stovall, CFRA’s Chief Investment Strategist, noted that we project this mid-to-late economic cycle outperformer to record above-market EPS growth in 2017, assisted by a recovery in commodity prices from their drawn-out decline. He also thinks the group will benefit from the expected pickup in U.S. infrastructure spending under the new Republican administration,” said CFRA Research in a note out Tuesday.

XLB is home to $3.57 billion in assets under management, making it the largest materials ETF on the market. The fund holds 28 stocks, but its lineup is top heavy as Dow component E I Du Pont De Nemours And Co (NYSE: DD), Dow Chemical Co (NYSE: DOW) and agribusiness giant Monsanto Company (NYSE: MON) combine for nearly 31
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ValueWalk

Pakistan And Russia Boosting Military Ties With 2017 Drills

By Polina Tikhonova. Originally published at ValueWalk.

Pakistan and Russia are letting go of their Cold War-era grievances and actively strengthening their economic, military and diplomatic ties, while India – Pakistan’s top enemy – is becoming enraged over Pakistan’s friendship with Russia.

Image: Flags of Pakitsan and Russia

Amid the news of U.S. President-elect Donald Trump’s bizarre phone call with Pakistan PM Nawaz Sharif, Cold War-era foes Islamabad and Moscow are melting the ice between them. On Thursday, the Russian Defense Ministry confirmed that R...



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Phil's Favorites

A Big Swirling Italian Mess

 

A Big Swirling Italian Mess

Courtesy of John Mauldin, Mauldin Economics

“Move to Italy. They know about living in debt: They don’t care.”

– John Lydon

“Italians were eating with a knife and fork when the French were still eating each other.”

– Mario Batali

Italians are headed to the polls this Sunday (and thus this letter is reaching you a little earlier than usual) – but no one is quite sure what is on the ballot. On the surface, the voters are considering whether to approve constitutional reforms that should make the government operate more effectively (or not, depending on your point of view). But many people think t...



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Zero Hedge

Official Washington's "Info-Wars"

Courtesy of ZeroHedge. View original post here.

Authored by William Blum, originally posted at Strategic-Culture.org,

On November 16, at a State Department press briefing, department spokesperson John Kirby was having one of his frequent adversarial dialogues with Gayane Chichakyan, a reporter for RT (Russia Today); this time concerning U.S. charges of Russia bombing hospitals in Syria and blocking the U.N. from delivering aid to the trapped population.

When Chichakyan asked for some detail about these charges, Kirby replied: “Why don’t...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Ten Good Pieces of Economic Data From All Around the World (Bloomberg)

It's been a big week for bullish economic data across the globe, from South Korean exports to European manufacturing figures. 

The most important number of the week comes tomorrow: November's U.S. jobs report.

Why 2016 May Be the Year of 'Peak Housing' for Can...



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Kimble Charting Solutions

Interest rates could peak here, says Joe Friday

Courtesy of Chris Kimble.

The talk over the past couple of months has been, interest rates are rising and the Fed will raise rates very soon. Joe Friday feels a big test is in play, before one can say the “rate trend has changed!”

Below looks at the yield on the 10-year note, over the past 20-years.

CLICK HERE TO ENLARGE

The yield on the 10-year note has remained inside of falling channel (1), creating lower highs and lower lows, for the majority of the past 20-years. The top of the channel is bein...



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Chart School

Semiconductors Hit Hard

Courtesy of Declan.

Internet troubles have limited me tonight, but the one chart I want to show is the near 5% loss in the Semiconductor Index.  Having escaped relatively unscathed from recent day's selling it was a whirlwind of action for the index today.


This had obvious consequences on the Nasdaq. The Nasdaq did relatively well to suffer just over a 1% loss.  However, there were 'sell' triggers for On-Balance-Volume and Directional Index. There was also an acceleration in the relative underperformance of the index to the S&P. ...

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Members' Corner

Second Hand Stink?

Courtesy of Nattering Naybob.

In what seems to be a recurring scatological humor theme, aka our "Toilet Thursday's" or "Thursday's in the Loo" of the past few weeks, we follow up on The Story of Poo-Pourri.

In Second Hand Stink?, men are not so subtlety reminded that an odiferous fog wafting from the bedroom loo, can indeed kill the moment. 

...

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OpTrader

Swing trading portfolio - week of November 28th, 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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Digital Currencies

Largest US Bitcoin Exchange Is "Extremely Concerned" With IRS Crackdown Targeting Its Users

Courtesy of ZeroHedge. View original post here.

Last Thursday we reported that in a startling development seeking to breach the privacy veil of users of America's largest bitcoin exchange, the IRS filed court papers seeking a judicial order to serve a so-called “John Doe” summons on the San Francisco-based Bitcoin platform Coinbase.

The government’s request is part of a bitcoin tax-evasion probe, and se...



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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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Biotech

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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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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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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