Archive for the ‘Benzinga’ Category

Is Apple's Same-Day Delivery The End For Apple Stores? Not Quite

Courtesy of Benzinga.

Is Apple's Same-Day Delivery The End For Apple Stores? Not Quite
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Apple Inc. (NASDAQ: AAPL) is offering same-day delivery in the San Francisco Bay area. This new feature could make customers less likely to visit brick-and-mortar locations, which might make investors wonder: is this the beginning of the end for the Apple Store?

"I don't think so," Global Equities Research analyst Trip Chowdhry told Benzinga. "Actually. I think there's a market for everything. [The] Apple Store is all about experiencing the product, not necessarily buying at the same time."

Tigress Financial Partners analyst Ivan Feinseth had a similar viewpoint.

"They're always going to have a physical retail presence," Feinseth told Benzinga, noting that the store was partially created to build Apple's brand. "The Apple Store is more of a place for customer service and to showcase tech and to create a connection to the brand. It's not just an outlet to sell the product. It's so much more."

Feinseth believes Apple will always build stores in "key locations," as the company already has.

Related Link: DISH Network Exec Explains Why Apple Was Unlikely To Release A TV

Same-Store Trap

Sean Udall, CIO of Quantum Trading Strategies and author of The TechStrat Report, doesn't believe this is the beginning of the end for the Apple Store. He said that while Apple CEO Tim Cook's greatest skill set was supply chain efficiency and low inventory, he doesn't expect the company to exit the retail business.

"If you look at the success of other retailers or food places, like Chipotle or Ulta Salon, they sort of do well as long as they can keep expanding their footprint and building more and more stores all the time," Udall told Benzinga. "Once they became a same-store sales deal, it's a tougher thing."

Udall said that it has never been Apple's goal…
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(Most Of) The Pros Love Avago

Courtesy of Benzinga.

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Company News for May 29, 2015 – Corporate Summary (Zacks)

Avago Technologies Ltd (NASDAQ: AVGO) announced on Thursday its intention to acquire Broadcom Corporation (NASDAQ: BRCM) for $37 billion.

Analyst reaction following the announcement was for the most part positive.

Jefferies: Acquisition Creates $14 Of EPS Power

Mark Lipacis of Jefferies commented in a note that the combined company would create the third largest semiconductor firm under his coverage with $17 billion in annual revenues and $6 billion in net income. The acquisition will position Avago as a "leading" supplier in Smartphones and Data Center infrastructure.

According to Lipacis' calculations, assuming 8 percent operating expenditure synergies (consistent with other deals in the space), a combined Avago and Broadcom would have over $14 in earnings per share power exiting 2017. In addition, the analyst estimated the combined company would have over $6 billion in annual free cash flow and become a "potential capital return play."

Shares of Avago were upgraded to Buy from Hold with a price target raised to $179 from a previous $125.

Related Link: Morgan Stanley: Keep Buying Avago Stock

UBS: Deal Better Than Expected

Stephen Chin of UBS commented in a note that Avago's plan to acquire Broadcom proved to be "much better than expected."

Chin noted that key positives from the acquisition and commentary from its conference call consist of:

  • An estimated earnings per share accretion in calendar year 2016 of $2.30 given cost synergies.
  • A combined IP and product portfolio that holds the potential to create new revenue growth opportunities in data and networking.
  • Wireless RF sales are seeing seasonal demand from next-gen iPhone procurement with likely high content.
  • HDD storage controllers are seeing demand improve into the bottom half of 2015.

Chin continued that a key theme of the acquisition consists of a…
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Credit Suisse: DRAM Supply Fears 'Overstated'

Courtesy of Benzinga.

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In a new report, Credit Suisse analysts John Pitzer takes a look at the growing concerns within the semiconductor equipment space that Samsung Electronics Co (OTC: SSNLF) has been flooding the market by “irrationally” adding dynamic random-access memory (DRAM) capacity during its conversion to 20 nm. According to the report, these fears are overblown, and the industry is approaching an upcoming period of undersupply.

Supply In Check

Analysts point to demand weakness, not oversupply, as the underlying cause of low prices so far in 2015. PC DRAM prices are down 20 percent year-to-date, and blended DRAM prices have fallen 13 percent in 2015.

Related Link: Mizuho: Time To Buy Micron

Analysts are projecting DRAM supply growth for the first half of the year of 30 percent year-over-year (Y/Y) and demand growth of only 28 percent Y/Y. However, in the second half of 2015, Credit Suisse expects the balance to shift to 24 percent Y/Y demand growth and only 22 percent supply growth.

“The industry is heading into a period of undersupply, which should lead to more stable pricing starting in the month of June,” Pitzer explains.

Projections

Credit Suisse is projecting 25 percent Y/Y DRAM bit growth in 2015 compared to 35 percent growth in 2014. Analysts are calling for only 23 percent bit growth in 2016 and believe that growth numbers have been peaking in the first half of this year.

Will Micron Deliver?

Credit Suisse’s revenue forecast for Micron Technology, Inc. (NASDAQ: MU)'s May quarter come in just shy of consensus estimates.

Credit Suisse is calling for earnings per share (EPS) of $0.61 on $3.93 billion in revenue, while the Wall Street consensus is EPS of $0.61 on revenue of $3.95 billion.

Posted-In: Credit Suisse DRAM DRAM SupplyAnalyst Color Long Ideas Analyst Ratings Tech Trading Ideas





Deckers Outdoor Floored After Mixed Guidance

Courtesy of Benzinga.

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Decker Outdoor Corp (NYSE: DECK) shares were trading lower by $2.15 at $69.06 in Friday’s session. The issue is way off its after-hours high of $77.40 that was instigated by a better-than-expected Q4 report for EPS and sales.

Following the brief rally, the issue nose-dived over $10 when the company issued weak Q1 guidance (loss of $1.52 per share vs. an estimated loss of $1.17). The fact the company guided higher for FY 2016 ($5.60 vs. $5.05 estimates) has been overshadowed by the wider than expected loss outlook.

During the regular session, the issue topped out on its opening print ($71.65), which coincides with the double close from Wednesday ($71.57) and Thursday ($71.20).

So far, it has declined to $67.32 and has been struggling to remain in the $69 handle.

Posted-In: Pre-market outlookTechnicals Intraday Update Movers Trading Ideas





Humana Reportedly Considering Sale Of Company

Courtesy of Benzinga.

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Shares of Humana Inc (NYSE: HUM) jumped 20 percent on Friday afternoon after The Wall Street Journal reported that the company is considering a sale.

According to WSJ, the health insurer has been approached by a few interested parties, and is evaluating the options with consultants at Goldman Sachs Group, people familiar with the matter said.

Among the companies having preliminary discussions with Humana are Aetna Inc (NYSE: AET) and CIGNA Corporation (NYSE: CI). If the move were to happen, it could “trigger a widely anticipated wave of consolidation in the industry (…) which has been relatively quiet since a spate of tie-ups in 2011 and 2012 that included Aetna’s $5.7 billion purchase of Coventry Health Care Inc. and Cigna’s acquisition of HealthSpring Inc. for $3.7 billion. Both deals were aimed at building scale in Medicare and Medicaid, which is geared toward lower-income people.”

Shares of Humana recently traded at $213.02, up 19.4 percent.

Related Link: Portfolio Manager Minyi Chen On Why Certain Companies Are Likely M&A Targets

Minyi Chen, portfolio manager of AdvisorShares Trust, recently told Benzinga that, “because of its strong presence in Medicare-related business,” Humana “could be a very likely target of a larger insurance company.”

Aetna and Cigna also rose on the news of a possible acquisition of Humana.

Humana is up more than 48 percent year-to-date, outperforming the S&P 500’s 2.64 percent surge.

Posted-In: Coventry Health Care healthspring MedicaidNews Wall Street Journal Rumors M&A Media





Mizuho Securities Downgrades Pacific Sunwear To Neutral

Courtesy of Benzinga.

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Mizuho Securities downgraded Pacific Sunwear of California, Inc. (NASDAQ: PSUN) from Buy to Neutral.

Pacific Sunwear shares have dropped 41.50 percent over the past 52 weeks, while the S&P 500 index has surged 10.46 percent in the same period.

Pacific Sunwear shares fell 12.21 percent to $1.51 in after-hours trading.

Latest Ratings for PSUN

Date Firm Action From To
May 2015 Mizuho Securities Downgrades Buy Neutral
Apr 2015 DA Davidson Downgrades Neutral Buy
Jan 2015 Janney Capital Upgrades Buy

View More Analyst Ratings for PSUN
View the Latest Analyst Ratings

Posted-In: Mizuho SecuritiesDowngrades Analyst Ratings





Guggenheim Securities Initiates Hemisphere Media Group With Buy

Courtesy of Benzinga.

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Analysts at Guggenheim Securities initiated coverage on Hemisphere Media Group Inc (NASDAQ: HMTV) with a Buy rating.

The target price for Hemisphere Media Group is set to $16.

Hemisphere Media Group shares have gained 7.39 percent over the past 52 weeks, while the S&P 500 index has surged 10.46 percent in the same period.

Hemisphere Media Group’s shares fell 0.97 percent to close at $12.20 yesterday.

Latest Ratings for HMTV

Date Firm Action From To
May 2015 Guggenheim Securities Initiates Coverage on Buy

View More Analyst Ratings for HMTV
View the Latest Analyst Ratings

Posted-In: Guggenheim SecuritiesInitiation Analyst Ratings





JP Morgan Initiates Schlumberger With Overweight

Courtesy of Benzinga.

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Analysts at JP Morgan initiated coverage on Schlumberger Limited (NYSE: SLB) with a Overweight rating.

The target price for Schlumberger is set to $101.

Schlumberger shares have dropped 12.72 percent over the past 52 weeks, while the S&P 500 index has surged 10.46 percent in the same period.

Schlumberger shares rose 0.39 percent to $91.00 in pre-market trading.

Latest Ratings for SLB

Date Firm Action From To
May 2015 JP Morgan Initiates Coverage on Overweight
May 2015 Citigroup Maintains Neutral
Apr 2015 Barclays Maintains Equal-weight

View More Analyst Ratings for SLB
View the Latest Analyst Ratings

Posted-In: JP MorganInitiation Analyst Ratings





Benzinga's Top #PreMarket Gainers

Courtesy of Benzinga.

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CA buying Rally Software for $480M; RALY +42.5% (Seeking Alpha)

Rally Software Development Corp (NYSE: RALY) shares surged 43.60 percent to $19.40 in pre-market trading after CA, Inc. (NASDAQ: CA) agreed to acquire

Tech Data Corp (NASDAQ: TECD) shares gained 8.62 percent to $66.50 in the pre-market trading session after the company reported better-than-expected results for the first quarter.

Express, Inc. (NYSE: EXPR) shares rose 8.30 percent to $18.00 in pre-market trading after the company reported stronger-than-expected results for the first quarter and raised its outlook for the full year.

GoPro Inc (NASDAQ: GPRO) gained 5.22 percent to $56.06 in pre-market trading after falling 0.24 percent on Wednesday.

Logitech International SA (USA) (NASDAQ: LOGI) shares climbed 3.08 percent to $16.05 in pre-market trading after rising 2.57 percent on Wednesday.

Posted-In: PreMarket GainersNews Pre-Market Outlook Markets Movers





Why Morgan Stanley Just Upgraded Molson Coors

Courtesy of Benzinga.

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In a report published Thursday, Morgan Stanley analysts Dara Mohsenian upgraded the rating on Molson Coors Brewing Company (NYSE: TAP) from Equal-weight to Overweight. The price target was raised from $81 to $83. The analyst believes the stock has a compelling risk/reward profile.

The analyst also believes that the company’s strategic potential has not been fully priced into its stock valuation and that the risk/reward profile is now more compelling, following the recent pullback in the share price.

Mohsenian expects fundamental downside for the company to be limited through its cost-cutting efforts, which are likely to ramp going forward. In addition, “TAP’s profit after capital charge model, which is based on EVA, sets a more disciplined framework for capital allocation and should generate improved results as it is rolled out across TAP and reflected in LT compensation,” the analyst said.

Given that the current expectations for the company’s U.S. performance are low, the U.S. macro-driven recovery could potentially be higher than the market expectations.

According to the Morgan Stanley report, “We believe strategic potential is not fully priced into TAP’s stock with ongoing consolidation in the beer industry. This includes a potential indirect benefit from TAP buying out the MillerCoors stake of SABMiller (its US JV partner) if Anheuser Busch Inbev SA (NYSE: BUD) were to acquire SAB, as continues to be postulated in the financial media.”

Latest Ratings for TAP

Date Firm Action From To
May 2015 Morgan Stanley Upgrades Equal-weight Overweight
May 2015 Susquehanna Maintains Positive
Apr 2015 Susquehanna Initiates Coverage on Positive

View More Analyst Ratings for TAP
View the Latest Analyst Ratings

Posted-In: Dara Mohsenian Morgan StanleyAnalyst Color Upgrades Price Target Analyst Ratings





 
 
 

Zero Hedge

Creator Of Infamous "Hope" Poster Lashes Out At Obama, Calls Americans "Ignorant And Lazy"

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Before the people realized that behind the "most transparent administration ever" there was nothing but double seasonal adjustments, drones and an impenetrable layer of propaganda and lies, there was...

And change, of course.

Sadly, at some point over the past six years the hope died, first for the people (if not the bankers), and then for the creator of the infamous "Hope" poster himself, Shepard Fairey who told ...



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Phil's Favorites

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Putting Economic Models in Their Place (Brad DeLong, Project Syndicate)

When policymakers turn to economists for guidance, they expect the advice they receive to be grounded in science, not academic factionalism or political presuppositions. After all, the policies they will be putting in place will have real implications for real people. Unfortunately, however, sound science is not always the driving force behind economic analysis and policy recommendations.

In a recent critique of what he calls the “mathiness” of modern economics, Paul M. Romer of...



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Chart School

STTG Market Recap May 29, 2015

Courtesy of Blain.

It was quite a volatile week and indexes closed it off on a sour note as the S&P 500 fell 0.63% and NASDAQ 0.55%.  For the month of May the S&P 500 gained 1.05% while the NASDAQ added 2.6%.   Greece was again the focus – perhaps next week some eyes will return to economic data as the first week of the month is chock full of reports.   Consumer sentiment showed a final read of 90.7 for May, the lowest since November and below April’s 95.9 print.  A gauge today showed Chicago-area manufacturing activity contracted this month to its lowest level since February, raising concerns that the rebound from a weak first quarter lacks vitality.

Tuesday’s selloff led to a bull flag failure and despite the immediate bounce back Wednesday, this failure has stayed intact.

...



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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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Kimble Charting Solutions

S&P 500 – Is it repeating the 2000 & 2007 topping pattern?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Could the S&P 500 be pulling a repeat of the 2000-2007 topping process?

The chart above reflects that the tops in 2000 & 2007 were 7 years and 7 months apart. Is it possible that another top is taking place 7 years and 7 months from the 2007 high? As the S&P is facing this potential time window repeating pattern, it is also staring the Fibonacci 161% Extension resistance level based upon the 2007 highs and 2009 lows, at the top of a rising wedge.

Is the S&P the only market facing a breakout test? The chart below takes a look at the white hot DAX index.

...



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Sabrient

Sector Detector: Stocks provide a tepid breakout as Fed greases the skids. So now what?

Courtesy of Sabrient Systems and Gradient Analytics

Early last week, stocks broke out, with the S&P 500 setting a new high with blue skies overhead. But then the market basically flat-lined for the rest of the week as bulls just couldn’t gather the fuel and conviction to take prices higher. In fact, the technical picture now has turned a bit defensive, at least for the short term, thus joining what has been a neutral-to-defensive tilt to our fundamentals-based Outlook rankings.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the t...



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OpTrader

Swing trading portfolio - week of May 24th, 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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Pharmboy

Big Pharma's Business Model is Changing

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

Understanding the new normal of a business model is key to the success of any company.  The managment of companies need to adapt to the changing demand, but first they must recognize what changes are taking place.  Big Pharma's business model is changing rapidly, and much like the airline industry, there will be but a handful of pharma companies left at the end of this path.

Most Big Pharma companies have traditionally done everything from research and development (R&D) through to commercialisation themselves. Research was proprietary, and diseases were cherry picked on the back of academic research that was done using NIH grants.  This was in the heyday of research, where multiple companies had drugs for the same target (Mevocor, Zocor, Crestor, Lipitor), and could reap the rewards on multiple scales.  However, in the c...



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Digital Currencies

Nasdaq's bitcoin plan will provide a real test of bitcoin hype

 

Nasdaq's bitcoin plan will provide a real test of bitcoin hype

By 

Excerpt:

Bitcoin, the virtual digital currency, has been called the future of banking, a dangerous fad, and almost everything in between, but we're finally about to get some solid data to help settle the debate.

On Monday, the Nasdaq (NDAQ) stock exchange said it would ...



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Market Shadows

Kimble Charts: US Dollar

Which way from here?

Chris Kimble likes the idea of shorting the US dollar if it bounces higher. Phil's likes the dollar better long here. These views are not inconsistent, actually, the dollar could bounce and drop again. We'll be watching. 

 

Phil writes:  If the Fed begins to tighten OR if Greece defaults OR if China begins to fall apart OR if Japan begins to unwind, then the Dollar could move 10% higher.  Without any of those things happening – you still have the Fed pursuing a relatively stronger currency policy than the rest of the G8.  So, if anything, I think the pressure should be up, not down.  

 

UNLESS that 95 line does ultimately fail (as opposed to this being bullish consolidation at the prior breakout point), then I'd prefer to sell the UUP Jan $25 puts for $0.85 and buy the Sept $24 call...



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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 

Since...



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Promotions

Watch the Phil Davis Special on Money Talk on BNN TV!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene

 

The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here (discussing the macro outlook for the markets) Part 2 is here. (discussing our main trading strategies) Part 3 is here. (reviewing our pick of th...

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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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