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Falling Thursday – Elon Musk Pleads the Fifth in a Conference Call – Who’s Next?

WTF?

Elon Musk, the CEO of Tesla (TSLA) gave a Donald Trump-like conference call yesterday where he refused to answer questions and insulted the analysts – even calling out "fake news" on well-documented problems with their auto-pilot system.  At one point in the call, Musk ignored the professional analysts for 23 minutes to chat with a blogger who had "friendlier" questions than, for instance "How are you going to replace all the cash you are burning?" and "How many model 3s will you produce now that you've failed to hit goals for the 3rd consecutive quarter?"  

This morning, even their biggest supporter at Morgan Stanley is bailing:

"While the consequences are unquantifiable, we believe Tesla’s CEO made a mistake in refusing to answer some of the analyst questions about the Model 3 ramp. Additionally, we found the posture out of character with the normally inviting,enlightening tone of prior conference calls over many years," writes Morgan Stanley's Adam Jonas.

To be clear. Tonight’s conference call didn’t go very well. Feedback we have received from investors during and following the call support this view. Irrespective of the Tesla CEO’s annoyance with the genre of questions he was receiving from the analyst community, we note that an important part of Tesla’s success has been its relationship with the capital markets in funding its ambitious plans. The analysts on the call represent the providers of capital that Tesla has throughout its history depended upon.

Image result for elon musk failure cartoonOther analysts blasted TSLA as well:

  • TESLA INVESTORS SAY ODD EARNINGS CALL ’SHOOK CONFIDENCE’: RBC
  • TESLA LIKELY TO FALL TODAY AFTER ‘TRULY BIZARRE’ CALL: JPMORGAN
  • TESLA REITERATED SELL AT GOLDMAN ON LIKELY MISSED TARGETS

Musk is playing a serious game with other people's money and refusing to answer questions about what he's doing with that money and whether or not his company is doing what he said it would do is NOT going to encourage more people to invest – especially in bonds he needs to float again to survive.  I have long said Tesla will likely implode as it's essentially a huge Ponzi scheme and he's run out of new projects that are big enough to paper over the running disasters the old projects have become.  (Disclosure: We do have shorts on TSLA in our hedge fund). 

Speaking of shorts, closing last week's Silver (/SI) longs with a $4,170 gain from our Webinar Trade (available to our Options Opportunity Portfolio Members at Seeking Alpha) last week, yesterday, live, we made $110 per contract shorting the Dollar (/DX) and $105 per contract shorting the Russell (/RTX) and then, into the close, we shorted the Russell again at 1,565 and this morning it's a jackpot at 1,545 for $1,000 per contract gains and we'll take those off the table and wait and see how bouncy things are this morning – congratulation to all who played along with us!  

Last May, when I warned people with "Tesla’s Earnings Miss – Emperor Musk has no Clothes!" we discussed a much better investment that could be made in General Motors (GM), saying:

Meanwhile, General Motors (GM), a company that MADE $2.6 BILLION in PROFITS in Q1 (that's right, TSLA's entire sales, in profits alone!) is still being valued lower than TSLA and it's just as ridiculous today as it was a month ago when I laid out the following bullish GM options spread idea:

  • Sell 10 GM 2019 $32 puts for $4.25 ($4,250)
  • Buy 25 GM 2019 $28 calls for $7.25 ($18,125)
  • Sell 25 GM 2019 $35 calls for $3.60 ($9,000)

We added that trade to our Options Opportunity Portfolio and, so far, it's flat but we are pretty sure that either TSLA is drastically overvalued or GM is drastically undervalued and probably both are right, so we're very comfortable with both of our auto sector calls now that we've seen the actual earnings of both companies.  Oh wait – are they still called "earnings" when they are actually horrific losses in Tesla's case?  

This trade still has the rest of the year to play out but GM, despite a huge pullback, is still over our goal of $35 and the Jan $32 puts are now $1.50 ($1,500) whole the Jan $28/35 bull call spread is $5.10 ($12,750) for a net of $11,250, which is up $6,375 (130%) from our original $4,875 cash entry and on it's way to the full $12,625 gain so still almost 100% more to gain from what's left of our trade.  

See, you don't have to subscribe to our PSW Morning Reports for $3 a day to get these fantastic trade ideas, even a year later – you can still get in on the last 100% gain that's left on our old trades!   

I know it's a quaint, old-fashioned notion but we like to invest in companies that actually MAKE MONEY and are trading at reasonable multiples to the money they make because, when things hit the fan (and there are lots of fans to hit) – we're "stuck" with companies that make money and, in the long run, making money does not go out of fashion with investors.  

When you invest in cult companies like Tesla, you become very dependent on the cult leader's ability to keep things going and we've been watching the myth of Elon Musk unravel more and more the past few months.  I talked about Fake Financial News and it was only 3 weeks ago that Adam Jonas of Morgan Stanley ajdusted his price target on Tesla to $376/share.  What sound reasoning was there behind Jonas' faith in TSLA?

The Morgan Stanley analysts said that Tesla might be “too big to fail,” set to employ around 50,000 people in the next couple of years, and every job in an auto maker is believed to support around seven jobs in the economy.

So if someone buys a Toyota Camry Hybrid that was made in Georgetown Kentucky instead of a Tesla Model S that was made in Fremont, California, 7 support people will lose their jobs?  No, that's not how manufacturing works – those 7 people will simply supply Toyota instead of Tesla and, not only that but, if you assume Tesla is more automated than Toyota or GM, then you are DESTROYING JOBS every time you buy a Tesla.  So yes, the premise is asinine and you need to be careful whose idiotic price targets you are following.  

18 of Tesla's 33 analysts upgraded their estimates recently with an average of $480/share while 11 have a hold at $313/share and just 4 analysts (and me) have the balls to say it isn't even worth $200 (I'm at $100 and I doubt I'd even jump in there).  

You don't need a degree in economics to spot flawed analysis – a little common sense puts you miles ahead of the pack in this game!  

 


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  1. Good morning, All!

    The webinar replay is now available!

    https://youtu.be/lhXuxQyNwqo



  2. Fun fact – A porn star has better legal representation than the President of the US!


  3. Labor shortages at fast food restaurants:

    https://www.nytimes.com/2018/05/03/upshot/fast-food-jobs-teenagers-shortage.html

    But in an industry where cheap labor is an essential component in providing inexpensive food, a shortage of workers is changing the equation upon which fast-food places have long relied. This can be seen in rising wages, in a growth of incentives, and in the sometimes odd situations that business owners find themselves in.


  4. Hurting their own base:

    https://www.motherjones.com/kevin-drum/2018/05/republican-health-care-sabotage-has-mostly-hurt-republicans/

    Or more likely, once again society will have to bail out people who vote against their self interest.


  5. Good Morning.


  6. StJ-On the GO Fund ME page there are always those poor souls "needing help" because they were healthy and sure as heck aren't going to pay or need health insurance. Only a car wreck changes all that and NOW they want everyone to bail them out. Good luck. I just can not feel sorry for them. I've had friends who always vote Republican and when they come down with cancer are totally up the creek wo the proverbial paddle. It truly is beyond my comprehension. Most are dead now because they didn't even have the funds to get to the Doc fast enough to catch it early. I try to help, but there is a limit when people refuse to watch out for themselves.


  7. Good morning!  

    TSLA down 7% at the moment – ouch!  

    Big Chart – NYSE down to 12,360 so we need a 100-point gain to get back to the 200 dma and the Dow is double it so we need a 200-point move in the Dow, back to 23,900ish, to get the NYSE over the line.  On the other hand, the Dow is now at it's 200 dma at 23,739 so watch that closely for an epic fail.

    First time I've been worried about being under-hedged in a while!  

    Legal/StJ – He's a great lawyer.  Good with the press too.  That's the funny thing about lawyers – one good one can beat the most expensive firm in the World if he hits the right argument.  

    Uninsured/StJ – Well, keep in mind that they WANTED to be uninsured.  It was the mandate that they get insurance that was pissing them off.  Prayer is much cheaper – until something happens and then they drag their uninsured asses to the hospital and we end up subsidizing their idiocy…

    Image result for republican health insurance cartoon

    Image result for republican health insurance cartoon

    Data's not bad but the market is turning down:

    Factory orders higher than anticipated

    • The Bloomberg Consumer Comfort Index fell to 56.5 for the week ending on April 29 after a reading of 57.5 a week ago
    • Stocks continue to struggle, opening lower as investors continue to overlook solid quarterly earnings results while focusing on trade and geopolitical concerns; Dow -0.5%, S&P -0.3%, Nasdaq -0.1%.
    • Two days of high level trade talks between the U.S. and China will begin today in Beijing, but the meeting is not expected to produce major immediate headlines.
    • European bourses are lower, with Germany's DAX -0.5%, U.K.'s FTSE -0.4% and France's CAC -0.3%; in Asia, Japan's Nikkei was closed, while China's Shanghai Composite finished +0.6%.
    • In earnings news, Tesla -5.8% after reporting better than expected quarterly results but getting a brushoff from CEO Elon Musk over analyst questions on gross margins and Model 3 production; also, Kellogg and Kraft Heinz are higher by a respective +3.1% and +3.6% after both companies beat earnings estimates.
    • Ten of the 11 S&P sectors are lower, led by utilities (-1%), financials (-0.9%) and health care (-0.8%); materials (+0.4%) is the only group in the green so far.
    • U.S. WTI crude oil -0.6% at $67.48/bbl.

    Sell-side weighs in on Square; shares down 4.5%

    • Describing the full-year outlook as "lukewarm," Guggenheim's Jeff Cantwell advises to nevertheless buy the dip as investors will begin to price in Weebly's revenue potential, and the overall long-term value proposition for Square (NYSE:SQ).
    • Also a bull on the name, Nomura's Dan Dolev notes roaring sales in Q1, but acknowledges that guidance lacked "oomph," and Amazon's entry into the space could pressure.
    • Source: Bloomberg
    • Let's hear from a bear. BTIG's Mark Palmer says shares are lower thanks to reports of Amazon's aggressive move into payments, weak guidance, and a fancy valuation. He reiterates his Sell rating and $30 price target.
    • Conference call transcript
    • Shares -4.5% premarket to $46.51.
    • Previously: Square down 5% despite beat and boosted guidance (May 2)
    • Previously: Square beats by $0.01, beats on revenue (May 2)

    NXP Semiconductors -4% on Q1 revenue miss

    • NXP Semiconductors (NASDAQ:NXPIdrops 4% premarket on Q1 results that missed revenue estimates. The company doesn’t provide guidance pending its acquisition by Qualcomm.
    • Revenue breakdown: HPMS segment, $2.17B (+8% Y/Y); Automotive, $995M (+10%).
    • Key metrics: Non-GAAP gross margin, 52.9%; operating margin, 27.2%; total gross debt, $6.58B; cash, $3.98B; adjusted EBITDA, $3.18B; cash flow from operations, $620M; net capex, $156M; FCF, $464M; share repurchase, $30M.
    • No earnings call scheduled due to the Qualcomm acquisition.
    • Press release 
    • Previously: NXP Semiconductors EPS of $0.17 (May 2)

    New York Times beats by $0.02, beats on revenue

    • New York Times (NYSE:NYT): Q1 EPS of $0.17 beats by $0.02.
    • Revenue of $413.95M (+3.8% Y/Y) beats by $4.88M.
    • Press Release

    Windstream -8.6% as Q1 net loss widens

    • Windstream (NASDAQ:WIN) is off 8.6% following Q1 earnings that missed expectations but that the company said showed a turnaround taking hold.
    • Under GAAP, revenues and sales were up 6%, with total service revenues up 7%, and operating income grew to $69M from $44M. Net loss widened to $121M from $111M.
    • On an adjusted basis, revenues fell to $1.45B from $1.52B, and adjusted OIBDAR was near flat at $500M.
    • Revenue by segment: Consumer & Small Business, $476.5M (down 6%); Enterprise, $746.1M (up 13%); Wholesale, $183.8M (up 3%); Consumer CLEC, $47.9M (up 131%).
    • It's reiterating full-year guidance for adjusted OIBDAR of $1.95B-$2.01B and expects service revenue trends to be slightly improved over 2017. It sees capex of $750M-$800M and free cash flow of about $165M.
    • Press release

  8. Go VIX! 


  9. NG getting interesting again at $2.75


  10. GILD hitting 65 today….  seems like this is oversold…  looking at selling  the '20 62.5 put (8) or the 60 at 6.5


  11. GILD – got the 62.5's at 8….. bfs next


  12. /NG/Lionel – Gotta keep a long-term view:  

    I have confidence in $2.60 holding, $2.50 for sure so I don't mind going long at $2.65 with plans to DD at $2.60 and again at $2.50 to avg about $2.56.  With that in mind, adding one just over $2.70 with tight stops (add 0.05 for /NGV8) below the line (it's below $2.75 now so no play) is $50 I don't mind losing while I wait.

    GILD/Batman – Very bad for companies who disappoint when broad sell-offs follow them.

    Dollar creeping back up.

    Just lost 2,600 on /ES – Wow!


  13. Thanks Phil. I will keep the plan in mind


  14. Interesting FTR mostly unchanged today after a big spike yesterday. Will it break through the range this time?   Maybe yesterday was mostly short covering, but if they have truly turned the corner (according to the long term game plan), this could be just the beginning of a bigger recovery as the "wait and see" funds step in?


  15. This is classic! 

    Speaking of analysts – Shaq should run TSLA:

    FTR/Mit – It's still very early stage in a huge turnaround (that was all planned from Day 1).  I just look at it as one Q of progress out of years of work ahead – what the investors think about it is just a side show.  If they do hold $10 – there should be another round of bear capitulation.  Today is very strong considering the drag of the broader market and volume yesterday was 12.4M vs normal 2M and there's only 76M shares total so lots of people came in to stay.

    Bouncing back a bit now but we'll see if we can take back those 200 dmas on /YM and NYSE. 


  16. Phil

    Is BRK/b in range at 190 for a trade?

    Thanks


  17. Did Shaq graduate from college ?


  18. Sold some Jan 2029  NLY  10  for 1.39 on the dip below 10.00


  19. BRK.B/QC – Not for me because they took a $21.5Bn tax credit last year so the earnings of $45Bn are really more like $23Bn, which is nice (almost 40% of AAPL) but, at $469Bn in market cap, we're talking 20x earnings for a conglomerate with an 87 year-old CEO.  I think Buffett buys back his own stock at $160, maybe $175 now with better earnings and lower taxes and $115Bn in cash and short-term investments.  You can sell 2020 $170 puts for $9.65 to net in for $160.35 and that's a nice way to keep an eye on them and let's sell 4 of those in the LTP to do just that.

    Shaq/Albo – I don't blame Shaq, I blame the people who pay him a few Million Dollars to be a sports analyst!   I know he went to LSU, not sure if he graduated.  He was a first-round draft pick and fulfilled as Rookie of the Year (92), 3 rings for the Lakers and 1 for the Heat.  He has a platinum rap album and has done movies and he's a qualified reserve officer of the LAPD!  Also, he's a great guy, when the housing crisis hit, he set up a company to buy homes in forclosure and sell them back to the owners at low-interest terms – just trying to break even while helping people and in Newark he does a lot of development deals that help the community (it's where he's from) and is a generous donator to our Food Bank.  I give him a lot of credit for helping to revitalize downtown Newark.   He also part-owns the Kings and the spokesman for Krispy Kreme.  He's worth about $400M – not as dumb as he seems.  

    NLY/Bert – Good call.


  20. No doubt Shaq has done well.  I didn't know about his contribution to Newark. Good for him.

    He just has trouble with math.


  21. Phil

    Thanks on BRK/b


  22. Phil

    You think AAPL is a good buy at 175?

    Or what would be a good BSC now

    As always thank you for the help


  23. Yet another amazing recovery once Europe closes.  Dow bottomed down 390, now -50.

    Shaq/Albo – Thank goodness he seems to have a financial guy who don't rip him off

     
    Courtesy of Aish.com

    As Sir Robin says:  

    AAPL/QC – I think they are worth it, I just talked about trade in the Webinar.  Still, officially we're waiting for a nice market correction.  


  24. Speaking of Broadway, I saw the strangest production of Sweeney Todd last night in a tiny little theater in the Village – lots of fun.  

    • Amazon (AMZN -1.3%announces the general availability of in-skill purchasing for U.S. customers.
    • Skill developers can sell content to Alexa users on a one-off basis or through subscriptions and the entire transaction happens through Alexa. 
    • Developers get 70% of the price paid, and Amazon keeps the other 30%. 
    • Better fit: Amazon is inviting people to a NY office to monitor body changes over 20 weeks using 3D sensors, according to an invitation seen by the WSJ
    • Participants will visit in ten bimonthly visits (and receive $250 in Amazon gift cards as payment) to help predict how clothing will fit customers. 
    • The 3D sensing tech came from Amazon’s acquisition of computer vision startup Body Labs last year. 
    • Job postings show that Amazon is creating statistical 3D models of human bodies the company will then match to images and videos using deep-learning algorithms.  
    • Previously: TechCrunch: Amazon acquires 3D modeling company for $70M (Oct. 3, 2017)
    • Anheuser-Busch InBev (BUD +1.8%) says it reserved 800 Nikola hydrogen-electric trucks to usefor long-haul delivery.
    • The beer company had previously ordered 40 Tesla (TSLA -7.6%) electric trucks for use on short hauls.
    • A-B doesn't appear to be picking a winner in the EV truck sector just yet. "We see the Nikola and Tesla vehicles as complementary solutions," says a top exec.
    • Nikola also landed an order of 1K electric trucks from U S Xpress, while Tesla has smaller orders from FedEx, UPS, Walmart and DHL on the books.
    • Earlier this week, Nikola sued Tesla over patent infringement.
    • Beazer Homes (BZH +7.2%) reported Q2 revenue growth of 7% Y/Y to $455.18M.
    • Homebuilding revenue +4.6% Y/Y to $441.1M, with home closing +2.2% Y/Y to 1,266 and average selling price +2.3% Y/Y to $348.4k. Gross margin improved 90 bps to 16.9%.
    • Land sales and others revenue +74% Y/Y to $14.06M; gross margin improved by 300 bps to 5.06%.
    • Q2 overall operating margin was up by 127 bps to 3.04% and Adj. EBITDA margin up 88 bps to 8.7%.
    • SG&A margin down 50 bps to 12.8%
    • New home orders +8.4% Y/Y to 1,679 and cancellation rate was down 170 bps to 14.9%.
    • Backlog was up 15% Y/Y to $885.4M.
    • Total inventory was at $1.67B as of 31 March 2018.
    • Q3 2018 outlook: New home orders and closings relatively flat; Backlog conversion ~60%; Average selling price ~$370k; Homebuilding gross margin ~21%; SG&A as % of revenue will be down, Adj. EBITDA and Land spend are expected to increase.
    • Previously: Beazer Homes beats by $0.21, beats on revenue (May 2)
    • Slides

  25. Phil-That Sweeney Todd reminds me of Zero Mostel when he did "Fiddler on the
    Roof." An absolute hoot!




  26. This Trump Lie Is Worse Than Most




  27. Buffett’s mortgage companies found to cater to white clients


  28. Todd/Pirate – It was a very cool production.  

    White House briefing about to start as they try to do damage control on Rudi's comments.  

    Don't forget NFP tomorrow morning but ADP was good so no real indication of trouble.  


  29. RE hospitals treating uninsured. There is a sign in Essentia Hospitals formerly ST. Mary's in Duluth that says "if you do not have insurance of some kind you will not be treated. Even in an emergency find somewhere else to go. No exceptions." Someone told me that there was a law that forbids that and I responded that I was sure that was rescinded as I knew personally of people who were turned away when they had no insurance. In Calif people were dying in waiting rooms because of not being covered so I would be curious about this for some definitive clarification.


  30. Hospitals/pirate – if a hospital accepts Medicare, and almost all do, then according to wiki The Emergency Medical Treatment and Active Labor Act (EMTALA) applies.  “Individuals requesting emergency care, or those for whom a representative has made a request if the patient is unable, must receive a medical screening examination (MSE) to determine whether an emergency medical condition (EMC) exists. The participating hospital cannot delay examination and treatment to inquire about methods of payment or insurance coverage, or a patient's citizenship or legal status.”

    https://en.wikipedia.org/wiki/Emergency_Medical_Treatment_and_Active_Labor_Act


  31. ….not sure where people are dying in waiting rooms here in Cali….fake news in the Heartland?… :(


  32. Any reason HBI is getting hit today?


  33. Hospitals/Pirate:  The trick is defining an emergency but they CAN NOT turn down an actual emergency so their whole statement is illegal.

    Public and private hospitals alike are prohibited by law from denying a patient care in an emergency. The Emergency Medical and Treatment Labor Act (EMTLA) passed by Congress in 1986 explicitly forbids the denial of care to indigent or uninsured patients based on a lack of ability to pay.

    This is helpful:

    What is an "emergency medical condition"?

    According to EMTALA provisions, a medical emergency involves acute symptoms of sufficient severity (including severe pain) that the absence of immediate medical attention could result in:

    • Placing the health of the individual (or, with respect to a pregnant woman, the health of the woman or her unborn child) in serious jeopardy.
    • Serious impairment to bodily functions.
    • Serious dysfunction of any bodily organ or part.

    With respect to a pregnant woman who is having contractions, an emergency medical condition exists when:

    • There is inadequate time to make a safe transfer to another hospital before delivery.
    • A transfer might pose a threat to the health or safety of the woman or the unborn child.

    And what Mike said! 

    Waiting rooms/1020 – Maybe they were shooting a scene?  Or:

    Certainly not common, regardless.


  34. Hospital/Phil

     

    This law only applies to those hospitals accepting Medicare.


  35. CBI is doing their merger soon and I don't want to be stuck with strange options so we're going to cash out of our positions and re-buy when the new options are out.

    In the LTP, we will close the 2020 Jan $15 ($3.50)/25 (0.75) bull call spread at $2.50 but we will leave the 20 short 2020 $20 puts as that target should be fine. 

    In the OOP, we have the same spread and we'll close that (10 for $2,500)  and leave the 2020 $15 puts short (10) 

    Medicare/Lala – Ah, that's true, it's possible Pirate's hospital doesn't participate.  


  36. Thank you for that information!! Yes I believe the death in Calif was while waiting for treatment. My daughter lived there and was all bent out of shape about it and the woman was Afro-American.  Good to know the scoop on it. My nephews wife was carrying twins and one died in utero. My nephew had a new job and was not yet covered with insurance. The Catholic hospital would not do anything to help them. The 2nd baby was viable, but because the dead fetus was not removed, the 2nd baby died too. Then they induced labor before the babies killed her too. First children for them and I was shocked that she couldn't get help. Knowledge is a powerful thing!!


  37. Must accept Medicare but not Medicaid? Hmmm.


  38. Well, what do you guys think about the day?  It was a nice recovery but still in the channel and looking long-term weak.

    Warren Buffett’s Berkshire Is Now America’s Second Largest Real-Estate Broker

    Goldman Sachs to Begin Bitcoin Futures Trading Within Weeks

    • Goldman Sachs: We are not opening a crypto trading desk… Goldman Sachs: We are not opening a crypto trading desk… Goldman Sachs: We are not opening a crypto trading desk… Goldman Sachs: We are opening a crypto trading desk

    Investors should just relax, according to Goldman Sachs Group Inc.

    • “We see three reasons why risk assets should worry less,” Goldman economists Charles Himmelberg and James Weldon wrote in a note Thursday. “First, we maintain our conviction in the strong outlook for global growth despite the recent dip in global activity indicators. Second, concerns over monetary tightening are likely overdone. Third, the technical headwinds that have weighed on risk sentiment look likely to ease.”

    AAPL's $100Bn buyback in perspective (and that's in addition to $150Bn they were already doing):


  39. sp500 bouncing off/near 200 dma, so could be some reversal unless the jobs numbers tomorrow are really bad… 


  40. GILD. – The more I read about GILD I think it's too early to move in….  2018 looks to be flat to down with integration of Kite taking effect, 2019 will probably see some better growth…. I'm exiting the Puts I sold and waiting for further pullback. perhaps 62 to 57 may make more sense……   I'll set an alert for 60 and wait.


  41. Healthcare — I think the point at which we fix our healthcare system is the point where we start approaching it like this: The United States is subsidizing research and development of medical products for the entire world.  The world profits from America's extremely high healthcare costs while Americans pay.  Reform of the US healthcare system will force the rest of the world to contribute to research and development rather than relying on extremely high costs born by US citizens.  This is made clear as day when viewing cost differences of pharmaceuticals, devices, and procedures between different countries around the world.

    I think what's really missing about the typical arguments around healthcare costs is that the money for R&D needs to come from somewhere--without the profits of healthcare, there will be little innovation in the sector.  What we need to do is let the rest of the world pick up their part of the tab instead of BS like Gilead treating Hep C in the US for $84k versus $900 in Egypt.  https://www.forbes.com/sites/theapothecary/2014/06/17/the-sovaldi-tax-gilead-cant-justify-the-price-its-asking-americans-to-pay/#3319deec5670

    I guess we're okay with socializing medicine for the rest of the world, just not the ones citizens paying for it?


  42. Giuliani’s other big admission may be even worse


  43. Pruitt Is Wrong on Burning Forests for Energy





  44. Here are the five felonies Rudy Giuliani just confessed to on Donald Trump’s behalf



  45. Good morning!

    More drift into NFP, nothing exciting going on, not much earnings either but lots of Fed speak tonight and BABA great earnings should keep things from being too dreary :

    • Investors are getting ready for the monthly snapshot of the nation's labor market, which comes this morning at 8:30 a.m. ET.
    • Expectations are for a gain of 192,000 jobs in April, with the unemployment rate falling to 4% for the first time since December 2000.
    • Wage growth is further anticipated at 0.2%, and anything higher than that could ramp up forecasts for more inflation and additional Fed rate hikes.
    • Trade talks between the U.S. and China ended after a second day as reports surfaced on American demands in the negotiations.
    • The U.S. requested China reduce the bilateral trade deficit by at least $200B by the end of 2020, as well as halting all government support for advanced technologies.
    • Chinese officials believed the proposal was "unfair," according to sources at the WSJ.
    • "Iran will not renegotiate what was agreed years ago and has been implemented,” Foreign Minister Mohammad Javad Zarif said in a video message on YouTube.
    • It comes as President Trump warns that unless European allies rectify the 2015 nuclear deal's "terrible flaws" by May 12, he will refuse to extend U.S. sanctions relief for the oil-producing Islamic Republic.

    • Newell Brands (NYSE:NWL): Q1 EPS of $0.34 beats by $0.08.
    • Revenue of $3.02B (-7.6% Y/Y) misses by $20M.
    • Shares +0.11% PM.
    • Newell Brands (NYSE:NWL) to sell The Waddington Group to Novolex Holdings for gross proceeds of ~$2.3B.
    • The transaction is expected to result in after-tax proceeds of ~$2.2B, which will be applied to deleveraging and share repurchase.
    • “We’re pleased with today’s announced sale of The Waddington Group to Novolex,” said Michael Polk, Newell Brands Chief Executive Officer. “This mutually beneficial deal allows the Waddington team to unlock its full potential under a new owner who is committed to the packaging category, and provides Newell Brands the opportunity to take an important first step forward in our Accelerated Transformation Plan.”
    • The transaction is expected to close within approximately 60 days.
    • Press Release
    • AT&T (NYSE:Ttold a federal judge late Thursday it should reject any request by the DOJ forcing it to divest DirecTV or Turner for approval of its Time Warner (NYSE:TWX) deal, stating it "would destroy the very consumer value this merger is designed to unlock."
    • The DOJ has demanded divestitures, arguing that AT&T would have the ability to raise prices on Time Warner content for pay TV rivals.
    • Alibaba (NYSE:BABA): Q1 EPS of $0.91 beats by $0.03.
    • Revenue of $9.87B (+61% Y/Y) beats by $510M.
    • Shares +3.2% PM.
    • Press Release

    • Berkshire Hathaway (BRK.ABRK.Bbought 75M additional Apple (NASDAQ:AAPL) shares in Q1, with Warren Buffett outlining that the company "earns almost twice as much as the second most profitable company in the U.S."
    • The announcement, which comes ahead of Berkshire's annual shareholder meeting on Saturday, brings its total stake in the tech giant to 240.3M shares worth $42.5B.