Archive for 2014

UPDATE: Raymond James: Oil Prices, Oil Stocks 'Within Weeks Of Bottoming'

Courtesy of Benzinga.

Related HES
Raymond James Looks For Bottom In Oil
Benzinga's Top Upgrades
Energy Stocks Move Higher as Oil Spikes (Fox Business)

Pavel Molchanov of Raymond James believes that oil prices and energy stocks are within weeks of bottoming, regardless of the outcome from OPEC's upcoming meeting on Thursday.

“That certainly does not mean that we envision a huge near-term oil rally, but even a period of stabilization would support recovery in energy stocks, particularly given the prospect of sector rotation into energy and out of the recently outperforming S&P sectors,” Molchanov wrote in a note on Monday while issuing two upgrades and downgrades.

Hess, Occidental Petroleum Upgraded

Molchanov upgraded shares of Hess Corp. (NYSE: HES) to Outperform from Market Perform while shares of Occidental Petroleum Corporation (NYSE: OXY) were upgraded to Strong Buy from Outperform.

The analyst notes that Hess and Occidental Petroleum are “by no means the most aggressive oil stocks” but the companies are “highly oil-centric” and have underperformed amid the energy sector since the end of June.

Chevron, Exxon Downgraded

Molchanov downgraded shares of Chevron Corporation (NYSE: CVX) to Outperform from Strong Buy while shares of Exxon Mobil Corporation (NYSE: XOM) were downgraded to Market Perform from Outperform.

The analyst notes that the two companies are “among the world's most conservative energy investments” and have held up “quite well” in recent months. However, with a “less violent” commodity backdrop, shares are unlikely to outperform as investors develop an appetite for “more offensive-type” investments.

Latest Ratings for HES

Date Firm Action From To
Nov 2014 Raymond James Upgrades Market Perform Outperform
Nov 2014 Credit Suisse Maintains Outperform
Oct 2014 ISI Group Upgrades Hold Buy

View More Analyst Ratings for HES
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Posted-In: Chevron Exxon hess occidental petroleumAnalyst Color Upgrades Downgrades Analyst Ratings

ChinaCache Announces Strategic Partnership With Aspera To Provide Large Data File Transmission

Courtesy of Benzinga.

Related CCIH
Earnings Scheduled For November 19, 2014
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ChinaCache International Holdings Ltd. (“ChinaCache” or the “Company”) (Nasdaq: CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced that it has formed a strategic partnership with Aspera to provide best-performance high-speed data transmission services for large files. Aspera, an IBM company, developed the technologies that move the world’s data at maximum speeds.

ChinaCache will combine its high quality CDN network service with Aspera’s FASP™ transmission technology to ensure high-speed transmission of large data files around the globe, with the added benefits of safety, controllability, cost-effectiveness and flexibility. The combination can increase the data transmission speed by 3 to 184 times, while enhancing the connectivity and stability of networks, as well as the security of data transmission. When sending large files, this high-speed file transmission service delivers peak performance even with poor network dynamics. The ChinaCache – Aspera solution addresses the long-distance transmission needs of television networks, research institutions, government agencies, financial institutions and top 500 enterprises.

“The unprecedented growth of file sharing demands in the age of big data brings higher requirements and challenges to network transmission ability. Partnering with Aspera, ChinaCache will provide clients with a world-class high-speed file transmission service and guarantee an optimal end-user experience through the premier FASP transmission technology,” said Mr. Song Wang, Founder, Chairman and Chief Executive Officer of ChinaCache.

Posted-In: News M&A Press Releases

UPDATE: Bank Of America Upgrades Banco Bilbao Vizcaya Argentaria

Courtesy of Benzinga.

Related BBVA
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Bank of America upgraded Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE: BBVA) from Underperform to Neutral Monday and cut its price target from $11 to $10.49.

The analyst report noted that the share price is down 9 percent YTD and now offers little downside.

Analysts led by Sergio Gamez noted that “BBVA announced on 19 November the acquisition of 14.89 percent stake in Garanti from the Dogus group, increasing its share to 39.9 percent at a max TRY8.9/sh (no premium to the closing price).”

“To fund the transaction, BBVA declared a €2bn accelerated bookbuilding offer, implying a c.4 percent share-count increase. The deal adds c.1 percent to 2015-16E EPS and is NAPVS accretive on our estimates,” according to Gamez

Gamez observed that the “acquisition makes BBVA the main shareholder (39.9 percent) in a leading franchise (c.11percent market share) in the attractive Turkish banking sector. It also adds potential growth to BBVA’s P&L and increases the group’s geographical diversification.”

“Our main concern relates to geopolitical risk in Turkey and the franchises in Venezuela and Argentina,” the report concluded.

Banco Bilbao Vizcaya Argentaria recently traded at $10.60, up 2.32 percent.

Latest Ratings for BBVA

Date Firm Action From To
Nov 2014 Bank of America Upgrades Underperform Neutral
Oct 2014 Deutsche Bank Upgrades Hold Buy
Nov 2013 Bank of America Downgrades Neutral Underperform

View More Analyst Ratings for BBVA
View the Latest Analyst Ratings

Posted-In: Bank of America Sergio GamezAnalyst Color Upgrades Price Target Analyst Ratings

Bank Of America Downgrades Wesco Aircraft

Courtesy of Benzinga.

Related WAIR
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Bank of America downgraded Wesco Aircraft Holdings Inc (NYSE: WAIR) from Buy to Underperform Monday and set a $26 price target after missing Q4 estimates.

Analyst Ronald J. Epstein derived the $26 price target “using a 17x one-year forward P/E multiple on CY15E earnings.”

“Our multiple is based on a weighted average mix of defense and commercial aerospace. We believe WAIR should trade at a slight premium to pure defense names and pure commercial aerospace names (at 13x and 15x, respectively) given its strategy and the company's positioning, which should benefit from an expanding commercial aerospace cycle,” according to Epstein.

The analyst note saw that “risks to the downside could come from an economic slowdown that would likely lower OEM production rates, higher oil prices that would likely derail air traffic growth and, therefore, aircraft demand, fewer ad hoc sales that would compress margins, and deeper cuts to the DoD budget than currently anticipated, which could impact key programs, such as the F-35.”

Epstein conclude that “if the commercial aerospace production ramp is more robust than we anticipate and/or the cuts to the DoD budget less severe than we anticipate, earnings could fare better than our projections and the stock could perform better. If margins fare better than we are forecasting, there could also be upside to our valuation.”

Wesco Aircraft Holdings recently traded at $14.45, up 3.36 percent.

Latest Ratings for WAIR

Date Firm Action From To
Nov 2014 Bank of America Downgrades Buy Underperform
Nov 2014 Barclays Downgrades Overweight Equal-weight
Nov 2014 Citigroup Maintains Buy

View More Analyst Ratings for WAIR
View the Latest Analyst Ratings

Posted-In: Bank of America Ronald J. EpsteinAnalyst Color Downgrades Price Target Analyst Ratings

Longbow Research Initiates Whole Foods Market With Underperform

Courtesy of Benzinga.

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Analysts at Longbow Research initiated coverage on shares of Whole Foods Market (NASDAQ: WFM) with a Underperform rating.

The target price for Whole Foods Market is set to $37.

Whole Foods Market shares have dropped 14.06% over the past 52 weeks, while the S&P 500 index has gained 14.48% in the same period.

Whole Foods Market’s shares rose 1.13% to close at $48.23 on Friday.

Latest Ratings for WFM

Date Firm Action From To
Nov 2014 Longbow Research Initiates Coverage on Underperform
Nov 2014 William Capital Group Reiterates Outperform
Nov 2014 Citigroup Maintains Neutral

View More Analyst Ratings for WFM
View the Latest Analyst Ratings

Posted-In: Longbow ResearchInitiation Analyst Ratings

UPDATE: Bank Of America Upgrades Kate Spade

Courtesy of Benzinga.

Heather Balsky of Bank of America upgraded shares of Kate Spade & Co (NYSE: KATE) to Buy from Neutral on Monday with a price target raised to $34 from a previous $33.

“Based on our handbag survey results, we think Kate Spade can offset fewer markdown sales with greater full price sell-through, and continue to post comp and earnings beats,” Balsky wrote in a note to clients.

The analyst adds that a projected 45 percent growth outlook on higher comp and margins are not currently factored in to share prices and that the company can see “robust” comp growth as promotions decline.

According to an internal consumer survey, Balsky concluded that fewer Kate Spade customers seek deals and promotions as purchasing an item with a superior fashion and design is more important. The analyst adds that the consumer survey helps to explain the company’s third-quarter 15 percent comp gain, despite less discounting and ongoing weak mall traffic.

Balsky expects the habits of Kate Spade consumers to continue in to 2015. The analyst is modelling 16 percent comps in fiscal 2015, above the consensus estimate of 13.5 percent.

Looking further, the analyst expects fiscal 2016 adjusted EBITDA margins to improve an additional 550 basis points to 18.2 percent from fiscal 2014 estimates. Within the next five years, the analyst expects margins to reach the low 20s.

Latest Ratings for Kate

Date Firm Action From To
Nov 2014 Bank of America Upgrades Neutral Buy
Nov 2014 Barclays Maintains Overweight
Nov 2014 Bank of America Maintains Neutral

View More Analyst Ratings for Kate
View the Latest Analyst Ratings

Posted-In: Bank of America Consumers Heather Balsky Kate SpadeAnalyst Color Upgrades Price Target Analyst Ratings

Sarepta Therapeutics Shares Trending Higher Amid Sector M&A

Courtesy of Benzinga.

Shares of Sarepta Therapeutics Inc (NASDAQ: SRPT) are in play on Monday amid consolidation announcements within the sector.

On Monday, BioMarin Pharmaceutical Inc. announced the company will acquire Prosensa Holding NV for roughly $680 million.

On the heels on the announcement, shares of Sarepta were up 10 percent.

Posted-In: News M&A Pre-Market Outlook

Benzinga's Top Downgrades

Courtesy of Benzinga.

Related CBI
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Analysts at Goldman Sachs downgraded Chicago Bridge & Iron Company N.V. (NYSE: CBI) from Neutral to Sell. The price target for Chicago Bridge & Iron has been lowered from $61 to $46. Chicago Bridge & Iron’s shares closed at $57.09 on Friday.

Analysts at Raymond James downgraded Exxon Mobil (NYSE: XOM) from Outperform to Market Perform and removed the price target of 106. Exxon Mobil’s shares closed at $96.81 on Friday.

Analysts at JMP Securities downgraded Cash America International (NYSE: CSH) from Market Outperform to Market Perform. Cash America’s shares closed at $25.20 on Friday.

Analysts at Bank of America downgraded Standard Pacific (NYSE: SPF) from Buy to Neutral. The price target for Standard Pacific has been lowered from $9 to $8.50. Standard Pacific’s shares closed at $7.58 on Friday.

Latest Ratings for CBI

Date Firm Action From To
Nov 2014 Goldman Sachs Downgrades Neutral Sell
Nov 2014 Credit Suisse Maintains Neutral
Oct 2014 Credit Suisse Maintains Neutral

View More Analyst Ratings for CBI
View the Latest Analyst Ratings

Posted-In: Top DowngradesDowngrades Analyst Ratings

UPDATE: Bank Of America Downgrades Standard Pacific Corp.

Courtesy of Benzinga.

Related SPF
Benzinga's Top Downgrades
Bank of America Downgrades Standard Pacific To Neutral

In a note released Monday, Bank of America analyst Michael Roxland downgraded shares of Standard Pacific Corp. (NYSE: SPF) from Buy to Neutral and lowered the price target from $9 to $8.50.

Roxland commented, "Our thesis on SPF had centered on the company's ability to maintain gross margins at higher levels than it has historically while also experiencing better order growth than peers given its positioning and targeted demographic." He added, "While we still believe the company will post strong gross margins and order growth long-term, in the near-term, SPF is currently experiencing some headwinds".

Looking on the bright side, Roxland noted Standard Pacific has undertaken a number of initiatives that, if successful, could ultimately benefit the company. Included in these initiatives are a share buyback program and a cost take-out.

Latest Ratings for SPF

Date Firm Action From To
Nov 2014 Bank of America Downgrades Buy Neutral
Oct 2014 Compass Point Maintains Buy
Sep 2014 JP Morgan Downgrades Neutral Underweight

View More Analyst Ratings for SPF
View the Latest Analyst Ratings

Posted-In: Bank of America Michael RoxlandAnalyst Color Downgrades Price Target Analyst Ratings

Where Is China On The Map Exactly?

Courtesy of The Automatic Earth

Arthur Siegel Bethlehem-Fairfield shipyards, Baltimore, MD May 1943

A lot of people these days vent their opinions on what’s happening with the Chinese economy, and the opinions are so all over the place they could hardly be more different. Which is interesting, to say the least. Apparently it’s still very hard to understand what does happen ‘over there’.

And I don’t at all mean to suggest that I would know better than Morgan Stanley’s former Asia go-to-man Stephen Roach, or hedge funder Hugh Hendry, or Bob Davis, who just spent 4 years in the country for the Wall Street Journal, or Gwynn Guilford at Quartz, or local Reuters correspondents. It’s just that between them, they disagree so vastly you’d think they’re playing a game with your mind.

Me, personally, I think China’s official economic data should be trusted even less – if possible – than those of most other nations, including Japan, EU+ and the US. And therefore the rate cut last week, and the ones that look to be in the offing soon, constitute neither an act of confidence nor an confident act. China may well already be doing a lot worse than we think.

So where are we right now with all this, what DO we know? The best approach seems to be, as always, to follow the money. Let’s start with Reuters today:

China Ready To Cut Rates Again On Fears Of Deflation

China’s leadership and central bank are ready to cut interest rates again and also loosen lending restrictions, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses, said sources involved in policy-making. Friday’s surprise cut in rates, the first in more than two years, reflects a change of course by Beijing and the central bank, which had persisted with modest stimulus measures before finally deciding last week that a bold monetary policy step was required to stabilize the world’s second-largest economy.

Economic growth has slowed to 7.3% in the third quarter and policymakers feared it was on the verge of dipping below 7% – a rate not seen since the global financial crisis. Producer prices, charged at

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#1 Performing Global Macro Hedge Fund Sees More Shorts Opportunities Ahead As China Bursts

By Jacob Wolinsky. Originally published at ValueWalk.

Crescat Global Macro Fund update to investors on 1/19/2019

Crescat Global Macro Fund and Crescat Long/Short fund delivered strong returns for both December and full year 2018 in a difficult market. Based on ...

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Zero Hedge

Johns Hopkins, Bristol-Myers Face $1 Billion Suit For Infecting Guatemalan Hookers With Syphilis 

Courtesy of ZeroHedge. View original post here.

A federal judge in Maryland said Johns Hopkins University, pharmaceutical company Bristol-Myers Squibb and the Rockefeller Foundation must face a $1 billion lawsuit over their roles in a top-secret program in the 1940s ran by the US government that injected hundreds of Guatemalans with syphilis, reported Reuters.

Several doctors from Hopkins an...

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Phil's Favorites

Divisive economics


Guest author David Brin — scientist, technology consultant, best-selling author and futurist — explores the records of Democrats and Republicans on the US economy in the following post. For David's latest posts, visit the CONTRARY BRIN blog. For his books and short stories, visit his web...

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Kimble Charting Solutions

Stock declines did not break 9-year support, says Joe Friday

Courtesy of Chris Kimble.

We often hear “Stocks take an escalator up and an elevator down!” No doubt stocks did experience a swift decline from the September highs to the Christmas eve lows. Looks like the “elevator” part of the phrase came true as 2018 was coming to an end.

The first part of the “stocks take an escalator up” seems to still be in play as well despite the swift decline of late.

Joe Friday Just The Facts Ma’am- All of these indices hit long-term rising support on Christmas Eve at each (1), where support held and rallies have followed.

If you find long-term perspectives helpf...

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Digital Currencies

Transparency and privacy: Empowering people through blockchain


Transparency and privacy: Empowering people through blockchain

Blockchain technologies can empower people by allowing them more control over their user data. Shutterstock

Courtesy of Ajay Kumar Shrestha, University of Saskatchewan

Blockchain has already proven its huge influence on the financial world with its first application in the form of cryptocurrencies such as Bitcoin. It might not be long before its impact is felt everywhere.

Blockchain is a secure chain of digital records that exist on multiple computers simultaneously so no record can be erased or falsified. The...

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Insider Scoop Explores Strategic Alternatives, Analyst Sees Possible Sale Price Around $30 Per Share

Courtesy of Benzinga.

Related 44 Biggest Movers From Yesterday 38 Stocks Moving In Wednesday's Mid-Day Session ... more from Insider

Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...

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Members' Corner

Why Trump Can't Learn


Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...

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Opening Pandora's Box: Gene editing and its consequences

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


Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.


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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...

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Swing trading portfolio - week of September 11th, 2017

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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Free eBook - "My Top Strategies for 2017"



Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:


·       How 2017 Will Affect Oil, the US Dollar and the European Union


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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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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.

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