Friday, August 3, 2018

Hot Bank Stocks To Invest In 2019

tags:CLLS,ATTU,ASML,

Agios Pharmaceuticals (NASDAQ:AGIO) has been given a $125.00 price objective by equities research analysts at Piper Jaffray Companies in a research report issued to clients and investors on Thursday. The firm currently has a “buy” rating on the biopharmaceutical company’s stock. Piper Jaffray Companies’ price objective points to a potential upside of 50.33% from the stock’s current price.

A number of other research analysts have also recently commented on AGIO. BidaskClub cut Agios Pharmaceuticals from a “strong-buy” rating to a “buy” rating in a research note on Monday, June 18th. SunTrust Banks reiterated a “buy” rating and issued a $123.00 price target on shares of Agios Pharmaceuticals in a research note on Monday, July 23rd. Cann reaffirmed a “hold” rating on shares of Agios Pharmaceuticals in a research report on Friday, July 20th. Credit Suisse Group set a $95.00 target price on Agios Pharmaceuticals and gave the stock a “buy” rating in a research report on Monday, May 7th. Finally, ValuEngine raised Agios Pharmaceuticals from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, May 2nd. Four equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. The company has an average rating of “Buy” and an average price target of $96.27.

Hot Bank Stocks To Invest In 2019: Cellectis S.A.(CLLS)

Advisors' Opinion:
  • [By Stephan Byrd]

    Shares of Cellectis SA (NASDAQ:CLLS) have earned an average recommendation of “Hold” from the nine research firms that are presently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and five have assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $42.00.

Hot Bank Stocks To Invest In 2019: Attunity Ltd.(ATTU)

Advisors' Opinion:
  • [By Joseph Griffin]

    Attunity Ltd (NASDAQ:ATTU) has earned an average recommendation of “Buy” from the six ratings firms that are currently covering the firm, Marketbeat reports. Four investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among analysts that have covered the stock in the last year is $12.33.

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Attunity (ATTU)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Attunity (ATTU)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Hot Bank Stocks To Invest In 2019: ASML Holding N.V.(ASML)

Advisors' Opinion:
  • [By Ethan Ryder]

    ASML (NASDAQ: ASML) and ACM Research (NASDAQ:ACMR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

  • [By Max Byerly]

    Get a free copy of the Zacks research report on ASML (ASML)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Jon C. Ogg]

    ASML Holding N.V. (NASDAQ: ASML) was down 2.6% to $197.02 on Friday morning. The stock has a 52-week trading range of $126.03 to $216.00 and a consensus analyst target price of $196.81.

  • [By Max Byerly]

    Front Row Advisors LLC increased its holdings in ASML Holding NV (NASDAQ:ASML) by 15.5% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,247 shares of the semiconductor company’s stock after purchasing an additional 703 shares during the period. Front Row Advisors LLC’s holdings in ASML were worth $1,042,000 as of its most recent SEC filing.

Wednesday, August 1, 2018

Alexandria Real Estate Equities (ARE) and Orchid Island Capital (ORC) Financial Comparison

Orchid Island Capital (NYSE: ORC) and Alexandria Real Estate Equities (NYSE:ARE) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider and Institutional Ownership

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31.2% of Orchid Island Capital shares are held by institutional investors. Comparatively, 99.0% of Alexandria Real Estate Equities shares are held by institutional investors. 0.3% of Orchid Island Capital shares are held by insiders. Comparatively, 1.4% of Alexandria Real Estate Equities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Orchid Island Capital and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orchid Island Capital N/A 13.71% 1.45%
Alexandria Real Estate Equities 22.13% 4.26% 2.18%

Dividends

Orchid Island Capital pays an annual dividend of $1.08 per share and has a dividend yield of 13.4%. Alexandria Real Estate Equities pays an annual dividend of $3.72 per share and has a dividend yield of 3.0%. Orchid Island Capital pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities pays out 61.8% of its earnings in the form of a dividend. Alexandria Real Estate Equities has raised its dividend for 7 consecutive years.

Volatility and Risk

Orchid Island Capital has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares Orchid Island Capital and Alexandria Real Estate Equities’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Orchid Island Capital $145.96 million 2.87 $2.00 million $0.84 9.57
Alexandria Real Estate Equities $1.13 billion 11.38 $169.09 million $6.02 20.71

Alexandria Real Estate Equities has higher revenue and earnings than Orchid Island Capital. Orchid Island Capital is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Orchid Island Capital and Alexandria Real Estate Equities, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orchid Island Capital 0 0 0 0 N/A
Alexandria Real Estate Equities 0 1 6 0 2.86

Alexandria Real Estate Equities has a consensus target price of $101.48, suggesting a potential downside of 18.61%. Given Alexandria Real Estate Equities’ higher possible upside, analysts plainly believe Alexandria Real Estate Equities is more favorable than Orchid Island Capital.

Summary

Alexandria Real Estate Equities beats Orchid Island Capital on 14 of the 16 factors compared between the two stocks.

Orchid Island Capital Company Profile

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company's RMBS are backed primarily by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS; and structured Agency RMBS, including collateralized mortgage obligations, interest only securities, inverse interest only securities, and principal only securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2010 and is headquartered in Vero Beach, Florida.

Alexandria Real Estate Equities Company Profile

Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500庐 company, is an urban office real estate investment trust ("REIT") uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $17.9 billion and an asset base in North America of 30.2 million SF as of March 31, 2018. The asset base in North America includes 20.8 million RSF of operating properties and 3.5 million RSF of development and redevelopment of new Class A properties currently undergoing construction and pre-construction activities with target delivery dates ranging from 2018 through 2020. Additionally, the asset base in North America includes 5.9 million SF of intermediate-term and future development projects, including 3.6 million SF of intermediate-term development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide its innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science and technology companies through its venture capital arm. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For additional information on Alexandria, please visit www.are.com.

Saturday, July 21, 2018

Taglich Brothers Weighs in on Simulations Plus, Inc.’s FY2019 Earnings (SLP)

Simulations Plus, Inc. (NASDAQ:SLP) – Analysts at Taglich Brothers increased their FY2019 earnings per share estimates for shares of Simulations Plus in a report released on Thursday, July 19th. Taglich Brothers analyst H. Halpern now anticipates that the technology company will earn $0.52 per share for the year, up from their previous estimate of $0.51.

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Several other equities analysts also recently issued reports on SLP. BidaskClub upgraded Simulations Plus from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, June 13th. Zacks Investment Research downgraded Simulations Plus from a “buy” rating to a “hold” rating in a research report on Friday, March 23rd. Finally, ValuEngine upgraded Simulations Plus from a “buy” rating to a “strong-buy” rating in a research report on Monday, May 14th.

Simulations Plus stock opened at $18.15 on Friday. The company has a market cap of $305.63 million, a P/E ratio of 53.24 and a beta of -0.60. Simulations Plus has a one year low of $13.38 and a one year high of $23.95.

Simulations Plus (NASDAQ:SLP) last posted its earnings results on Tuesday, July 10th. The technology company reported $0.13 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.12 by $0.01. The business had revenue of $8.55 million during the quarter, compared to the consensus estimate of $7.86 million. Simulations Plus had a return on equity of 25.65% and a net margin of 29.88%.

Institutional investors and hedge funds have recently modified their holdings of the business. TIAA FSB bought a new stake in shares of Simulations Plus during the second quarter worth $225,000. Bank of Montreal Can bought a new stake in shares of Simulations Plus during the second quarter worth $186,000. Campbell & CO Investment Adviser LLC bought a new stake in shares of Simulations Plus during the second quarter worth $507,000. Millennium Management LLC bought a new stake in shares of Simulations Plus during the first quarter worth $752,000. Finally, Ancora Advisors LLC raised its position in shares of Simulations Plus by 12.9% during the first quarter. Ancora Advisors LLC now owns 296,837 shares of the technology company’s stock worth $4,378,000 after acquiring an additional 33,925 shares during the last quarter. Hedge funds and other institutional investors own 35.13% of the company’s stock.

In other Simulations Plus news, Chairman Walter S. Woltosz sold 18,500 shares of Simulations Plus stock in a transaction on Tuesday, May 29th. The stock was sold at an average price of $19.27, for a total value of $356,495.00. Following the completion of the transaction, the chairman now owns 5,454,408 shares in the company, valued at approximately $105,106,442.16. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 33.45% of the company’s stock.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 2nd. Shareholders of record on Thursday, July 26th will be given a $0.06 dividend. The ex-dividend date is Wednesday, July 25th. This represents a $0.24 annualized dividend and a yield of 1.32%. Simulations Plus’s payout ratio is 70.59%.

Simulations Plus Company Profile

Simulations Plus, Inc develops drug discovery and development software for mechanistic modeling and simulation worldwide. The company offers GastroPlus, which simulates the absorption, pharmacokinetics (PK), and pharmacodynamics of drugs administered to humans and animals; DDDPlus that simulates in vitro laboratory experiments, which measure the rate of dissolution of the drug and additives in a dosage form; and MembranePlus, which simulates laboratory experiments.

Featured Story: Should you buy a closed-end mutual fund?

Earnings History and Estimates for Simulations Plus (NASDAQ:SLP)

Friday, July 20, 2018

Friday’s Biggest Winners and Losers in the S&P 500

July 20, 2018: The S&P 500 closed flat at 2,801.92. The DJIA closed flat at 25,057.92. Separately, the Nasdaq was flat at 7,820.20.

Thursday was a flat day for the broad U.S. markets, although each one of the major averages was fairly positive at one point in the day. Crude oil made another solid gain in the session putting it back above $70. The S&P 500 sectors were mostly negative. The most positive sectors were consumer staples and financials up 0.6% and 0.3%, respectively. The worst performing sectors were real estate and utilities down 0.8% and 0.6%, respectively.

Crude oil was last seen trading up 1.2% at $70.31.

Gold was last seen trading up 0.5% at $1,229.60.

The stock posting the largest daily percentage loss in the S&P 500 ahead of the close was State Street Corp. (NYSE: STT) which fell more than 7% to $86.13. The stock��s 52-week range is $84.56 to $114.27. Volume was about 10 million compared to the daily average volume of 1.6 million.

The S&P 500 stock posting the largest daily percentage gain ahead of the close was Cintas Corp. (NASDAQ: CTAS) which traded up 5% at $203.55. The stock��s 52-week range is $130.09 to $204.27. Volume was 1.2 million compared to the daily average volume of less than half a million.

Thursday, July 19, 2018

Netflix stock is tanking, but Hollywood would kill for its problems

Wall Street is punishing Netflix for a mediocre quarter. But don't feel too bad for it just yet.

Netflix is still the one to beat in Hollywood, where traditional entertainment and media companies are racing to catch up to its enormous head start in streaming video.

Sure, Netflix (NFLX) might have missed its subscriber target by 1 million customers last quarter. But it still has 130 million people tuning in around the world.

"They have a bulls eye on their back," said said Daniel Ives, an analyst at GBH Insights. "Look, they are on the top of the mountain right now. They are miles ahead of their competitors."

Ives is keeping his $500 price target on the company.

Hulu, for example, just passed 20 million subscribers in May. That service also doesn't have the same international reach that Netflix does.

Disney (DIS), meanwhile, is often considered a major threat to Netflix. But its competitive streaming service isn't expected to launch until next year.

Right now, Netflix is already on the road to recovery. The stock was down about 5% on Tuesday, compared to its initial 13% drop during after-hours trading Monday.

Analysts at BMO Capital Markets upgraded Netflix to "outperform" and pointed to the opportunity the company has to grow in countries like India and Japan.

BTIG Research analyst Rich Greenfield raised his price target to $420, citing the "breadth and quality" of Netflix content as a key factor in its continued success. Netflix earned 112 Emmy nominations this year, topping longtime premium TV king HBO.

But there are some questions about how much the company can keep growing.

Disney is already mounting a formidable challenge. It is close to finalizing a deal for the movie studio assets of 21st Century Fox (FOXA), a pairing that would also allow it to inherit Fox's share of Hulu and control a majority stake in that service. (Comcast controls 30%, while AT&T (T) controls 10%).

Disney and Comcast (CCZ) are also fighting over the European broadcaster Sky, which would expand either company's footprint overseas.

AT&T's HBO is another major factor. That service has at least 142 million viewers around the world including cable subscribers, according to Bloomberg. The New York Times has also reported that its executives have acknowledged the need to make more headway in streaming. (AT&T also owns CNN).

Netflix also has to face competition from tech's most powerful companies, like Apple (AAPL) and Amazon (AMZN). Amazon is already streaming originals through its Prime Video service, while Apple is investing heavily in its own content.

Analysts at MoffettNathanson on Tuesday pointed out that Netflix's focus is narrower than its tech rivals. Amazon, for example, is defined by its massive shopping business.

"There is little sign that rivals are falling away," they wrote. "In fact, as Netflix noted, other larger, better funded entities are entering this space."

chart netflix subscribers growth

The MoffettNathanson analysts also noted that Netflix will have to spend more money on original content and marketing to succeed, especially as traditional studios pull their content off the service. Disney has already said it would do that ahead of its own streaming plans.

"While the rewards are clearly there for breakthrough content like 'Stranger Things,' it is much more expensive and riskier, in general, to fund original productions as replacement content," the analysts wrote, referencing the popular Netflix show.

Netflix understands the need for independence already �� it is spending at least $8 billion on content this year.

But there are some concerns about whether it can maintain the quality of its programming. Although many originals have been well received, the service has been derided for the quality of its original movies.

The company arguably has some quality insurance. It recently poached TV heavyweights Shonda Rhimes and Ryan Murphy to make content exclusively for Netflix.

And if it really wants to boost its moviemaking credentials, Netflix could try to acquire a studio, said Ives, the GBH Insights analyst. He suggested A24, the company behind "Moonlight" and "Lady Bird," as a good target.

Netflix, for its part, does not appear too worried. CEO Reed Hastings called the competition "all normal and expected" during a broadcast for investors Monday.

His company reiterated that confidence in a letter to shareholders, which suggested that more competition is good for Netflix.

"We believe that consumer appetite for great content is broad and that there is room for multiple parties to have attractive offerings," the company said in the letter. "Our strategy is to simply keep improving, as we've been doing every year in the past."

--CNNMoney's Frank Pallotta contributed to this report.

Friday, July 13, 2018

Overlook Holdings Ltd Buys Baidu Inc

Hong Kong, K3, based Investment company Overlook Holdings Ltd buys Baidu Inc during the 3-months ended 2018-06-30, according to the most recent filings of the investment company, Overlook Holdings Ltd. As of 2018-06-30, Overlook Holdings Ltd owns 2 stocks with a total value of $330 million. These are the details of the buys and sells.

New Purchases: BIDU, Reduced Positions: NTES,

For the details of Overlook Holdings Ltd's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Overlook+Holdings+Ltd

These are the top 5 holdings of Overlook Holdings LtdNetEase Inc (NTES) - 756,622 shares, 58.02% of the total portfolio. Shares reduced by 15.29%Baidu Inc (BIDU) - 569,283 shares, 41.98% of the total portfolio. New PositionNew Purchase: Baidu Inc (BIDU)

Overlook Holdings Ltd initiated holding in Baidu Inc. The purchase prices were between $219.82 and $284.07, with an estimated average price of $249.09. The stock is now traded at around $261.25. The impact to a portfolio due to this purchase was 41.98%. The holding were 569,283 shares as of 2018-06-30.



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Thursday, July 12, 2018

Top 10 Penny Stocks To Own Right Now

tags:NYMT,AIM,RDC,ATAX,EGLE,NRG,JST,XIN,BDL,NICK,

Penny stocks are a great way for investors to chase triple-digit gains without a huge initial investment. That's why we're bringing you the three penny stocks to buy in July 2018.

You see, penny stocks can generate significant returns for retail investors. Just last month, we identified a little-known education company that jumped 267% in just one week.

In order to identify penny stocks with this kind of potential, we use the Money Morning�Stock VQScore�� system to find the best stocks under $5 �� the SEC's official definition of a penny stock.

Top 10 Penny Stocks To Own Right Now: New York Mortgage Trust Inc.(NYMT)

Advisors' Opinion:
  • [By Joseph Griffin]

    Shares of NY Mtg Tr Inc/SH (NASDAQ:NYMT) have earned an average recommendation of “Hold” from the eight research firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and one has given a buy recommendation to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $6.06.

Top 10 Penny Stocks To Own Right Now: Aerosonic Corporation(AIM)

Advisors' Opinion:
  • [By Shane Hupp]

    Aimia (TSE:AIM) has earned an average rating of “Hold” from the seven research firms that are currently covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and one has given a buy recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is C$2.67.

Top 10 Penny Stocks To Own Right Now: Rowan Companies Inc.(RDC)

Advisors' Opinion:
  • [By Lisa Levin]

    Check out these big penny stock gainers and losers

    Losers MDC Partners Inc. (NASDAQ: MDCA) fell 23.4 percent to $5.25 in pre-market trading after a first-quarter earnings miss. Hudson Technologies Inc. (NASDAQ: HDSN) shares fell 15.1 percent to $3.48 in pre-market trading after the company reported downbeat Q1 earnings. Nuance Communications, Inc. (NASDAQ: NUAN) fell 14 percent to $13.15 in pre-market trading after the company posted downbeat Q2 earnings and lowered FY18 organic growth guidance. Myomo, Inc. (NYSE: MYO) fell 13.2 percent to $3.10 in pre-market trading after reporting downbeat quarterly results. Rowan Companies plc (NYSE: RDC) shares fell 10.7 percent to $14.13 in pre-market trading after climbing 8.50 percent on Wednesday. BT Group plc (NYSE: BT) fell 9 percent to $14.80 in pre-market trading after the company reported Q4 results and announced plans to cut 13,000 jobs over the next three years. Exelixis, Inc. (NASDAQ: EXEL) fell 8.3 percent to $19.90 in pre-market trading after the company disclosed that IMblaze370 Phase 3 pivotal trial of atezolizumab and cobimetinib in patients with heavily pretreated locally advanced or metastatic colorectal cancer did not meet primary endpoint. Infinera Corporation (NASDAQ: INFN) fell 8.2 percent to $10.80 in pre-market trading after reporting Q1 results. Synaptics, Incorporated (NASDAQ: SYNA) shares fell 7.4 percent to $43.00 in pre-market trading. Synaptics reported better-than-expected earnings for its third quarter, while sales missed estimates. Randgold Resources Limited (NASDAQ: GOLD) shares fell 7.4 percent to $76.23 in pre-market trading after reporting Q1 earnings. Integra LifeSciences Holdings Corporation (NASDAQ: IART) shares fell 7 percent to $59.36 in pre-market trading. Integra LifeSciences priced its 5.25 million share public offering of common stock at $58.50 per share. Array BioPharma Inc. (NASDAQ: ARRY) shares fell 6.9 percent to $12.75 in pre-m
  • [By Shane Hupp]

    California Public Employees Retirement System reduced its position in Rowan Companies PLC (NYSE:RDC) by 5.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 656,438 shares of the oil and gas company’s stock after selling 41,386 shares during the quarter. California Public Employees Retirement System owned 0.52% of Rowan Companies worth $7,575,000 as of its most recent SEC filing.

  • [By Max Byerly]

    Shares of Rowan Companies PLC (NYSE:RDC) rose 0.8% during mid-day trading on Thursday . The company traded as high as $16.36 and last traded at $16.09. Approximately 144,835 shares changed hands during mid-day trading, a decline of 94% from the average daily volume of 2,492,971 shares. The stock had previously closed at $16.22.

Top 10 Penny Stocks To Own Right Now: America First Tax Exempt Investors L.P.(ATAX)

Advisors' Opinion:
  • [By Max Byerly]

    Get a free copy of the Zacks research report on America First Multifamily Investors (ATAX)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on America First Multifamily Investors (ATAX)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Shares of America First Tax Exempt Investors, L.P. (NASDAQ:ATAX) hit a new 52-week high and low during mid-day trading on Monday . The company traded as low as $6.47 and last traded at $6.43, with a volume of 54800 shares changing hands. The stock had previously closed at $6.43.

Top 10 Penny Stocks To Own Right Now: Eagle Bulk Shipping Inc.(EGLE)

Advisors' Opinion:
  • [By Stephan Byrd]

    Several brokerages have updated their recommendations and price targets on shares of Eagle Bulk Shipping (NASDAQ: EGLE) in the last few weeks:

    7/2/2018 – Eagle Bulk Shipping was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating. 6/28/2018 – Eagle Bulk Shipping was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating. 6/18/2018 – Eagle Bulk Shipping is now covered by analysts at Morgan Stanley. They set an “equal weight” rating and a $6.50 price target on the stock. 6/18/2018 – Eagle Bulk Shipping is now covered by analysts at DNB Markets. They set a “buy” rating on the stock. 6/12/2018 – Eagle Bulk Shipping was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating. 6/2/2018 – Eagle Bulk Shipping was upgraded by analysts at BidaskClub from a “hold” rating to a “buy” rating. 6/2/2018 – Eagle Bulk Shipping was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating. 5/29/2018 – Eagle Bulk Shipping is now covered by analysts at Evercore ISI. They set an “outperform” rating and a $7.50 price target on the stock. 5/15/2018 – Eagle Bulk Shipping was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Eagle Bulk Shipping is the largest U.S. based owner of Handymax dry bulk vessels. Handymax dry bulk vessels range in size from 35,000 to 60,000 deadweight tons, or dwt, and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. “ 5/9/2018 – Eagle Bulk Shipping had its “hold” rating reaffirmed by analysts at Maxim Group. They now have a $6.00 price target on the

Top 10 Penny Stocks To Own Right Now: NRG Energy Inc.(NRG)

Advisors' Opinion:
  • [By Ethan Ryder]

    DTE Energy (NYSE: DTE) and NRG Energy (NYSE:NRG) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

  • [By Jon C. Ogg]

    NRG Energy Inc. (NYSE: NRG) was started with a Buy rating and�assigned a $37 price objective (versus a $33.15 close) at Merrill Lynch.

    Oasis Petroleum Corp. (NYSE: OAS) was reiterated as Overweight and the target price was raised to $17 from $13 at Morgan Stanley.

Top 10 Penny Stocks To Own Right Now: Jinpan International Limited(JST)

Advisors' Opinion:
  • [By Joseph Griffin]

    Deutsche Bank set a €46.00 ($53.49) price target on JOST Werke (ETR:JST) in a research report sent to investors on Friday. The firm currently has a buy rating on the stock.

  • [By Logan Wallace]

    A number of firms have modified their ratings and price targets on shares of JOST Werke (ETR: JST) recently:

    5/25/2018 – JOST Werke was given a new €46.00 ($53.49) price target on by analysts at Deutsche Bank AG. They now have a “buy” rating on the stock. 5/25/2018 – JOST Werke was given a new €46.00 ($53.49) price target on by analysts at Deutsche Bank AG. They now have a “buy” rating on the stock. 5/25/2018 – JOST Werke was given a new €47.00 ($54.65) price target on by analysts at Warburg Research. They now have a “buy” rating on the stock. 5/24/2018 – JOST Werke was given a new €45.00 ($52.33) price target on by analysts at JPMorgan Chase & Co.. They now have a “neutral” rating on the stock. 5/8/2018 – JOST Werke was given a new €46.00 ($53.49) price target on by analysts at Deutsche Bank AG. They now have a “buy” rating on the stock. 4/4/2018 – JOST Werke was given a new €47.00 ($54.65) price target on by analysts at Warburg Research. They now have a “buy” rating on the stock.

    Shares of JOST Werke traded down €0.15 ($0.17), hitting €38.10 ($44.30), during mid-day trading on Friday, according to MarketBeat. 8,510 shares of the company’s stock were exchanged, compared to its average volume of 35,469. JOST Werke AG has a 52 week low of €27.20 ($31.63) and a 52 week high of €47.50 ($55.23).

  • [By Joseph Griffin]

    Warburg Research set a €47.00 ($55.95) price target on JOST Werke (ETR:JST) in a report published on Friday. The firm currently has a buy rating on the stock.

Top 10 Penny Stocks To Own Right Now: Xinyuan Real Estate Co Ltd(XIN)

Advisors' Opinion:
  • [By Shane Hupp]

    Xinyuan Real Estate Co., Ltd. (NYSE:XIN) declared a quarterly dividend on Wednesday, May 30th, RTT News reports. Stockholders of record on Monday, June 11th will be given a dividend of 0.05 per share by the financial services provider on Friday, June 22nd. This represents a $0.20 annualized dividend and a dividend yield of 3.74%.

  • [By Ethan Ryder]

    Mixin (XIN) is a proof-of-stake (PoS) token that uses the SHA256 hashing algorithm. It launched on October 2nd, 2017. Mixin’s total supply is 1,000,000 tokens and its circulating supply is 438,115 tokens. Mixin’s official message board is mixin.one/logs. Mixin’s official Twitter account is @XIN_Foundation and its Facebook page is accessible here. The official website for Mixin is mixin.one.

Top 10 Penny Stocks To Own Right Now: Flanigan's Enterprises Inc.(BDL)

Advisors' Opinion:
  • [By Lisa Levin] Gainers Blink Charging Co. (NASDAQ: BLNK) shares jumped 26.5 percent to $6.9042. Blink Charging reported Q1 net income of $2.2 million, versus a year-ago net loss of $3.1 million. Eleven Biotherapeutics, Inc. (NASDAQ: EBIO) shares climbed 17.4 percent to $3.11. Eleven Biotherapeutics posted a Q1 loss of $0.11 per share. Flanigan's Enterprises, Inc. (NYSE: BDL) shares jumped 17 percent to $27.97 following Q2 results. Flanigan's Enterprises posted Q2 earnings of $0.75 per share on sales of $29.456 million. Borqs Technologies, Inc. (NASDAQ: BRQS) rose 15.8 percent to $8.05 after reporting Q1 results. Abaxis, Inc. (NASDAQ: ABAX) jumped 15.3 percent to $82.75. Zoetis Inc. (NYSE: ZTS) announced plans to acquire Abaxis for $83 per share in cash. 21Vianet Group, Inc. (NASDAQ: VNET) gained 15.1 percent to $6.33. Gemphire Therapeutics Inc. (NASDAQ: GEMP) rose 13.8 percent to $6.27. Enphase Energy, Inc. (NASDAQ: ENPH) gained 12.8 percent to $5.98. H.C. Wainwright initiated coverage on Enphase Energy with a Buy rating. PetIQ Inc (NASDAQ: PETQ) shares surged 12.1 percent to $21.68 after reporting a first-quarter sales beat. NF Energy Saving Corporation (NASDAQ: NFEC) climbed 11.6 percent to $2.399. Allied Healthcare Products, Inc. (NASDAQ: AHPI) surged 11.4 percent to $3.0643. Boot Barn Holdings, Inc. (NYSE: BOOT) gained 11.1 percent to $24.40 after the company reported upbeat results for its fourth quarter and issued strong first-quarter earnings guidance. Ascena Retail Group, Inc. (NASDAQ: ASNA) rose 10.9 percent to $3.16. Sea Limited (NYSE: SE) gained 10.1 percent to $11.71 after reporting Q1 results. GEE Group, Inc. (NYSE: JOB) climbed 7.9 percent to $2.61 following Q2 results. The ONE Group Hospitality, Inc. (NASDAQ: STKS) gained 7.6 percent to $2.41 after reporting Q1 results. Biolinerx Ltd/S ADR (NASDAQ: BLRX) rose 7.3 percent to $0.8798 after the company was granted a patent approval. The clinical-st
  • [By Shane Hupp]

    Bitdeal (CURRENCY:BDL) traded 12.6% lower against the dollar during the 24-hour period ending at 15:00 PM ET on July 10th. Bitdeal has a market cap of $592,736.00 and $1,700.00 worth of Bitdeal was traded on exchanges in the last day. One Bitdeal coin can now be bought for $0.0034 or 0.00000053 BTC on popular exchanges including CoinExchange and Cryptopia. During the last seven days, Bitdeal has traded 11.9% lower against the dollar.

Top 10 Penny Stocks To Own Right Now: Nicholas Financial Inc.(NICK)

Advisors' Opinion:
  • [By Ethan Ryder]

    Nicholas Financial (NASDAQ: NICK) and Encore Capital Group (NASDAQ:ECPG) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

  • [By Stephan Byrd]

    Nicholas Financial (NASDAQ: NICK) and CPI Card Group (NASDAQ:PMTS) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

  • [By Logan Wallace]

    Nicholas Financial (NASDAQ: NICK) and Encore Capital Group (NASDAQ:ECPG) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

  • [By Max Byerly]

    CPI Card Group (NASDAQ: PMTS) and Nicholas Financial (NASDAQ:NICK) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Wednesday, July 11, 2018

PACCAR (PCAR) Downgraded by BidaskClub

BidaskClub downgraded shares of PACCAR (NASDAQ:PCAR) from a sell rating to a strong sell rating in a research report released on Saturday morning.

Several other analysts also recently weighed in on the company. JPMorgan Chase & Co. lowered their price objective on PACCAR from $74.00 to $72.00 and set a hold rating for the company in a research report on Tuesday, April 10th. Deutsche Bank downgraded PACCAR from a hold rating to a sell rating and set a $77.00 price objective for the company. in a research report on Monday, March 19th. Zacks Investment Research downgraded PACCAR from a buy rating to a hold rating in a research report on Tuesday, April 3rd. ValuEngine upgraded PACCAR from a hold rating to a buy rating in a research report on Tuesday, April 3rd. Finally, Robert W. Baird reiterated a hold rating and issued a $80.00 price objective on shares of PACCAR in a research report on Tuesday, April 17th. Five investment analysts have rated the stock with a sell rating, fifteen have given a hold rating and five have issued a buy rating to the company. The company has a consensus rating of Hold and a consensus price target of $73.30.

Get PACCAR alerts:

Shares of PCAR stock opened at $61.84 on Friday. The company has a quick ratio of 2.29, a current ratio of 2.45 and a debt-to-equity ratio of 0.69. PACCAR has a fifty-two week low of $59.82 and a fifty-two week high of $79.69. The company has a market capitalization of $21.43 billion, a price-to-earnings ratio of 14.52, a P/E/G ratio of 1.10 and a beta of 1.22.

PACCAR (NASDAQ:PCAR) last announced its quarterly earnings data on Tuesday, April 24th. The company reported $1.45 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.31 by $0.14. PACCAR had a return on equity of 21.26% and a net margin of 8.99%. The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.01 billion. During the same quarter in the previous year, the company posted $0.88 earnings per share. The business’s revenue was up 35.2% on a year-over-year basis. equities analysts predict that PACCAR will post 5.68 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 5th. Stockholders of record on Tuesday, August 14th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 1.81%. PACCAR’s dividend payout ratio (DPR) is presently 26.29%.

In related news, insider T. Kyle Quinn sold 9,964 shares of the company’s stock in a transaction on Monday, May 7th. The stock was sold at an average price of $64.69, for a total value of $644,571.16. Following the sale, the insider now directly owns 32,000 shares of the company’s stock, valued at $2,070,080. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP C Michael Dozier sold 13,348 shares of the company’s stock in a transaction on Monday, May 14th. The stock was sold at an average price of $63.45, for a total value of $846,930.60. Following the completion of the sale, the vice president now directly owns 8,860 shares in the company, valued at $562,167. The disclosure for this sale can be found here. 2.64% of the stock is currently owned by insiders.

Hedge funds have recently modified their holdings of the stock. Jacobi Capital Management LLC purchased a new stake in PACCAR in the first quarter worth $102,000. Point72 Asia Hong Kong Ltd grew its stake in PACCAR by 1,202.7% in the first quarter. Point72 Asia Hong Kong Ltd now owns 2,423 shares of the company’s stock worth $160,000 after purchasing an additional 2,237 shares during the period. Silvant Capital Management LLC purchased a new stake in PACCAR in the first quarter worth $177,000. Motley Fool Asset Management LLC purchased a new stake in PACCAR in the first quarter worth $204,000. Finally, Two Sigma Securities LLC purchased a new stake in PACCAR in the fourth quarter worth $226,000. 62.99% of the stock is currently owned by institutional investors.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. It operates in three segments: Truck, Parts, and Financial Services. The Truck segment offers trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods.

Analyst Recommendations for PACCAR (NASDAQ:PCAR)

Friday, July 6, 2018

Forbes - Investing Information and Investing News - Forbes.com","description":"Forbes is a leading s

&l;p&g;&l;img class=&q;dam-image shutterstock size-large wp-image-1079539136&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1079539136/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g;&l;span&g;Carrying a credit card balance month-to-month will cost you unnecessary interest fees but won&s;t help your credit score&a;nbsp;(Photo: Shutterstock)&l;/span&g;

A &l;a href=&q;https://www.creditcards.com/credit-card-news/late-payment-survey.php&q; target=&q;_blank&q;&g;new study&l;/a&g; by CreditCards.com sheds more light on a common credit myth that causes millions of Americans to underpay their credit card balances in an effort to improve their credit score.

While the components that make up your credit score are &l;a href=&q;https://www.myfico.com/credit-education/whats-in-your-credit-score/&q; target=&q;_blank&q;&g;publicly disclosed&l;/a&g;, the actual calculation itself is shrouded in mystery. Many consumers struggle to understand what types of actions will help or hurt their score. For example, while opening a new credit card may temporarily ding your score a small amount, it can actually improve your score in the long run because higher cumulative credit limits result in lower utilization (the amount of your total credit line that you use).

It&a;rsquo;s no wonder then that credit myths run wild. One myth in particular is costing unsuspecting consumers millions of dollars in unnecessary interest fees.

&l;strong&g;Carrying a Credit Card Balance Does Not Help Your Credit Score&l;/strong&g;

The CreditCards.com &l;a href=&q;https://www.creditcards.com/credit-card-news/late-payment-survey.php&q; target=&q;_blank&q;&g;study&l;/a&g; found that a&l;span&g;lmost one quarter of cardholders who carry a balance choose to do so not because they can&s;t pay the balance down, but for the express purpose of improving their credit score - despite the fact that doing so has absolutely no discernible impact on credit scores. Similarly, &l;a href=&q;https://www.nerdwallet.com/blog/finance/bad-credit-score-survey/&q; target=&q;_blank&q;&g;another survey by Nerdwallet&l;/a&g; found that more than 40% of Americans mistakenly believe this myth that carrying a balance month-to-month like this will help their credit score. &l;/span&g;

&l;span&g;Fortunately, there is no truth to this concept.&a;nbsp;&l;/span&g;Lenders checking your credit report can see the utilization reported by your credit card issuer and whether or not you pay your bills on time. However, they won&a;rsquo;t actually know whether you carry a balance month-to-month or whether you pay it in full.

&l;strong&g;What This Means for Your Wallet&l;/strong&g;

When you carry a balance just to try to help your credit, you&a;rsquo;re literally just throwing your money away! With credit card APRs averaging in the &l;a href=&q;https://www.creditcards.com/credit-card-news/good-apr-interest-rate.php&q; target=&q;_blank&q;&g;mid-to-high teens&l;/a&g;, carrying a balance when you can otherwise afford to pay it off can be an expensive and unnecessary mistake. For example, carrying a balance of $600 month-to-month can cost over $100 a year in avoidable interest fees, money that could be better used to pay down other debts, save up for a big purchase, or contribute to a retirement account.

&l;strong&g;What&a;nbsp;Does&a;nbsp;Go into Your Credit Score?&l;/strong&g;

Most myths are based in some fact, and this one is no different. The second largest portion of your credit score is your &a;ldquo;Amounts Owed,&a;rdquo; or what portion of your credit lines you use - often called your utilization. Having a positive utilization can be seen as better than 0% utilization, and &l;a href=&q;https://www.creditkarma.com/article/creditcardutilizationandscore&q; target=&q;_blank&q;&g;studies from Credit Karma&l;/a&g; show this to be generally true across many consumers. On average, consumers with zero utilization on their credit card accounts have lower credit scores than those with low but positive utilization. This means that using your card and having a balance could be better for you than not using your card at all.

So why the confusion? Many consumers have misinterpreted what it means to have positive utilization. According to the Fair Issac Corporation, the company behind the ubiquitous FICO credit score, &a;ldquo;Your account balance on your credit report will reflect the account balance your lender reported to the credit bureau (typically the balance from your latest monthly statement)&a;rdquo; and &a;ldquo;even if you pay off your credit cards in full each month, your credit report may show a balance on those cards.&a;rdquo; In other words, your credit card issuer will report your statement balance regardless of how much of that statement balance you pay off and when.

Nowhere in the calculation is there any mention of an interest-accruing balance that is carried month-to-month; yet some consumers still mistakenly think that in order to prove they can use credit responsibly and show some utilization, they do need to carry a balance month to month. Ultimately, paying your statement balance in full to avoid interest and late fees will still demonstrate utilization.

&l;!--nextpage--&g;

&l;strong&g;Why Utilization Matters at All&l;/strong&g;

Future potential lenders want to know that you can manage credit effectively. Using a credit card responsibly and paying it off on time demonstrates a trustworthy pattern. Not using a card at all makes it harder to predict how you would handle credit when you do need it. On the other side of the same coin, using a high percentage of your outstanding credit line might worry a future lender that you have already overextended yourself and may max out any new line of credit. Having a low, but positive, utilization is the ideal middle ground and is typically best for your credit.

&l;strong&g;The Best Way to Optimize Credit Utilization&l;/strong&g;

If you really want to game your credit utilization and improve your credit score, your best bet is to make a payment right before your issuer reports your balances. This date is typically your statement date, as mentioned, but you can confirm for any specific credit card by looking at a recent credit report to see when the balance on&a;nbsp;that card was reported. Once you know the date your balance is reported to the bureaus, pay a portion but not all of your current balance down to about 1-2% of your credit limit just beforehand every month. Then, make sure you pay off any remaining statement balance before your due date to avoid any interest. At the end of the day, there&a;rsquo;s no need to incur any fees at all!&l;/p&g;

Wednesday, July 4, 2018

Financial Freedom Eludes Many, but Social Security Helps

Today, we celebrate our freedom as a nation, as was symbolized by the signing of the Declaration of Independence 242 years ago. Whether we're with friends or family, manning the barbeque, out enjoying a sporting event, or preparing to unleash an arsenal of fireworks, we as Americans understand and appreciate the freedoms afforded to us.

However, one "freedom" that continues to elude many Americans is the ability to retire comfortably, and on your own terms.

According to a Bankrate survey released in March, most Americans fail to save an adequate amount of their income. While most financial advisors recommend that people save 15% or more of what they earn, just 16% of respondents to Bankrate's survey were heeding this advice. By comparison, 19% weren't saving a red cent, 21% were putting away 1% to 5% of their earnings, and another 25% were saving 6% to 10% of their income. In another context, essentially two-thirds of Americans are saving nothing or very little, thusly putting their retirement in jeopardy.�

A person filling out a Social Security benefits application form.

Image source: Getty Images.

Americans are leaning heavily on Social Security

One thing that has happened as a result of poor saving rates in recent decades is a growing reliance on Social Security to provide a financial foundation. Though it's a program that's only designed to replace 40% of working wages for the average retired worker, it's currently leaned on by 62% of aged beneficiaries for at least half of their monthly income, per the Social Security Administration. Worse yet, 34% of aged beneficiaries rely on Social Security for virtually all of their income (90% or more).

Still, it's a Gallup survey from April 2018 that's truly telling. Gallup asked both retirees and non-retired workers what role Social Security currently plays for them, or is expected to play in the future. Of current retirees, 57% cited that it was a "major source" of income, compared to 33% who considered it a "minor source," and the 10% who responded that it wasn't a source at all. Among non-retirees, 30% expect Social Security to be a major source of income, with another 54% suggesting it will play a minor role, and 14% not expecting it to be a source of income.�

Considering that non-retirees tend to overestimate their ability to prepare for the future, the percentage of retired and non-retired workers who'll have complete freedom from Social Security -- i.e., not rely on it as a source of income during retirement -- is probably at, or just above, 10%.

Meanwhile, an analysis conducted in 2016 by the Center on Budget and Policy Priorities found that the mere existence of Social Security and its guaranteed monthly payout is responsible for keeping an estimated 22.1 million people out of poverty. Of these folks, 15.1 million are retired workers. While retirement may not be lavish for these more than 15 million retired workers, it proves beyond a shadow of a doubt that building a financial foundation is rare without Social Security playing a role.

Dice and casino chips lying atop Social Security cards.

Image source: Getty Images.

Big trouble awaits

Though Social Security payments have been nothing short of a godsend for seniors over the past 78 years, the program is also on the verge of major changes that could adversely impact the perceived financial freedoms afforded to current and future retirees.

According to the newest Board of Trustees report, the program is on track to pay out more in benefits than it generates in revenue this year. This'll be the first time that's happened since prior to the Reagan administration reforms passed in 1983.

Between 2018 and 2034, the roughly $2.9 trillion in asset reserves that've been built up over more than three decades will be depleted. With no excess cash estimated to be in its coffers by 2034, the Trustees intimate that an across-the-board cut to benefits for current and future beneficiaries of 21% may be needed to sustain payouts through the year 2092. That's a terrifying proposition given how few people aren't reliant on Social Security in some capacity to help make ends meet when they retire. Based on the monthly average retired worker benefit of $1,412 as of May 2018, a 21% reduction would lead to an average monthly payout (in 2018 dollars) of $1,115. That's only $103 a month above the federal poverty level for the average retired worker!

A smiling woman holding a financial newspaper and looking off into the distance.

Image source: Getty Images.

It's time to break the cycle

In short, no one is denying the role Social Security has played up to this point in helping retirees form a financial foundation. But, truth be told, this cycle needs to be broken with today's working-age Americans. Social Security was never designed to be leaned on this heavily, and changing demographics are likely to sting those who continue to substantially rely on Social Security in the decades to come.

How does the cycle get broken? It means Americans will need to formulate a budget and stick to it in order to save more of their income. A 2013 Gallup poll found that just a third of American households stick to a detailed monthly budget, which makes understanding your cash flow, and therefore saving a reasonable amount of money, almost impossible.

It also means putting the money you do save to work over the long run. Sure, the stock market may have its hiccups every now and then, but there's been no more consistent creator of wealth over the long term.

No one ever said the path to financial freedom was easy. If you want your shot at the American dream, which includes financial freedom, you'll need to be proactive about saving more of your income and putting those savings to work.

Thursday, June 28, 2018

Does GE's Credit Rating Cut Matter?

It's never good news when a credit rating agency downgrades debt ratings for a company, so investors in General Electric Company (NYSE:GE)�didn't appear to have welcomed�Fitch's recent lowering of its rating on GE's debt to A from A+ the day it was announced. That said, does it really matter in the grand scheme of things? Let's take a look at the rationale for the ratings cut and whether it should concern for GE investors or not.

Fitch cuts GE's debt rating

Companies rely on debt in order to function (even if it's short-term financing for working capital needs), and a high rating tends to mean they pay less interest on that debt. So when a company's debt rating is cut by a credit rating agency, it implies bond investors will require higher rates in order to compensate them for the extra risk. Therefore, in the purest sense, Fitch's downgrade is a negative.

AC/DC converters

Power remains at the forefront of GE's problems. Image source: GE Energy Connections.

Moreover, the reasons behind the downgrade are obviously a concern. In a nutshell, Fitch's major worry is what it called "constrained" earnings and cash flow while GE deals with a number of issues due to a combination of factors:

An ongoing struggle dealing with its underperforming GE power business.� CEO John Flannery is restructuring the company through divestitures and cost-cutting. GE has a large pension deficit that it needs to fund in the future -- around $29 billion at the end of 2017.� A "weaker balance sheet at GE Capital" after the company took significant charges on GE capital businesses this year.� Don't we already know this?

Of course, these factors are already well known to the market. The problems at GE capital are known, as is the pension deficit and the restructuring plans. Moreover, the deterioration in the power segment outlook was also recently flagged by Flannery.

In case you are wondering why the power segment always attracts attention, it's because the aviation and healthcare segments are performing well, so the deciding factor in GE's earnings and cash flow performance (Fitch's major concern) will come from its power segment.

Of course, GE recently announced plans to separate the healthcare business. While this is good news from a liquidity perspective -- it will bring in cash as GE plans to monetize 20%�of the healthcare business and distribute the remaining 80% to GE shareholders -- exiting Healthcare will also reduce ongoing free cash flow generation and earnings. In addition, it means the power segment is even more important to GE's long-term prospects.�

Going back to the end of May at the Electrical Products Group (EPG) conference,�Flannery dialed back investors' expectations for the troubled power segment by claiming there would be "no quick fix" and that the end market for gas turbines (GE power's core product) would remain weak until at least 2020.�

In addition, at EPG Flannery said he aimed to get power segment margin back to above 10% (power margin was 5.6% in 2017) although he didn't give a specific time frame. This figure has now become one to watch for investors, as Fitch cited a failure to improve "segment margins in the Power business to around 10% by 2020" as a development that could lead to a negative rerating.

All told, Fitch's downgrade is pretty much a reaction to what GE has already told investors, and the credit rating agency's rationale for the rating cut shouldn't concern shareholders per se.

But the outlook should worry investors

On the other hand, it should be noted that Fitch's updated rating assumptions assume GE's free cash flow (FCF) after dividends will be around $2 billion in 2018 and will be "steady to slightly higher through the next one to two years with expectations for further improvement." Failure to reach the 2018 FCF target could lead to Fitch cutting its rating. �

Unfortunately, there are reasons to believe GE will struggle to hit Fitch's 2018 target. To put this into perspective, GE will likely pay out around $4.2 billion in dividends, so Fitch's assumption for GE's FCF is around $6.2 billion in 2018. That seems OK, after all Flannery reiterated GE's standing forecast for $6 billion to $7 billion in FCF in 2018.

But here's the thing -- or rather, the three things:

GE's EPS guidance for 2018 is $1.00-$1.07, but analyst consensus is for $0.94. GE has already lowered earnings expectations to the low end of the range so it's reasonable to assume FCF will come in at the low end of the range, too. Any further deterioration in the power segment is likely to lead to further guidance cuts for it and this will negatively impact FCF generation.

In other words, GE may well struggle to meet 2018 FCF assumptions (both its own and those of Fitch), and this could cause for another credit rating cut.

Investor Takeaway

Fitch's actions reflect the deterioration in the outlook at GE through 2018, and even though most of this is already known to the market, the credit agency's negative perspective still highlights the risk in the stock. There will surely be a time to buy GE shares at some point, but it's probably a good idea to wait until the power segment stabilizes, because only then can investors have full confidence in the company's earnings and cash flow outlook.

Monday, June 25, 2018

Boeing Grabs Another Big Widebody Order

In 2017, Boeing (NYSE:BA) saw a somewhat surprising uptick in order activity�after entering the year with modest expectations. The Boeing sales team is off to a great start in 2018, as well. By the end of May, the company had received 306 net orders for commercial jets�compared to 205 during the same period in 2017.

Recently, Boeing has been particularly successful in selling widebodies -- the larger dual-aisle aircraft that typically serve longer international routes. This is a market segment that Boeing had expected to remain weak until around 2020.

A 787-9 flying over a river

Widebody order activity has bounced back for Boeing this year. Image source: Boeing.

Last week, Boeing continued its impressive run of success in the widebody market. This time, it secured orders for 24 widebody freighters from package-delivery giant FedEx (NYSE:FDX).

Turning things around in the widebody market

Boeing currently builds four different widebody aircraft types: the four-engine 747 jumbo jet, the small 767 (mainly used as a freighter today), the large twin-engine 777, and the popular 787 Dreamliner. Across these four aircraft families, Boeing brought in more than 300 net firm orders in both 2013 and 2014, driven by new versions of the 777 and 787.

However, a combination of factors caused sales to slump after 2014. Boeing captured 180 net firm orders for widebodies in 2015 and just 118 in 2016. Sales started to pick up again in 2017, but widebody order activity remained quite low compared to the 2013-2014 boom years, with 167 net firm orders.

Boeing's widebody sales momentum has accelerated in 2018. In the first five months of the year, the company locked down 113 net firm widebody orders, including major deals with the likes of American Airlines, United Parcel Service, and Turkish Airlines. Considering that aircraft orders tend to be weighted toward the second half of the year, this puts Boeing on track for a spectacular performance in 2018.

FedEx orders up even more new planes

On Tuesday, Boeing announced an order for 24 widebody freighters from FedEx consisting of 12 767s and 12 777s. These aircraft will help FedEx replace older, less-efficient aircraft and accommodate future growth.

A rendering of a 767F and a 777F flying side-by-side in the FedEx livery

FedEx agreed to buy another 24 widebody freighters last week. Image source: Boeing.

FedEx already operates both of these aircraft types, with 57 767Fs and 34 777Fs in its fleet as of the end of May. Additionally, prior to placing this new order, FedEx already had another 70 Boeing widebody freighters scheduled for delivery in the coming years.

The additional 767s that FedEx ordered all will be delivered by May 2022. FedEx has become a big fan of the 767 over the past few years, so it's taking advantage of Boeing's decision to increase production of that aircraft type from 2.5 per month to three per month in 2020.

With the exception of two incremental 777s scheduled for delivery in fiscal 2021, all of the 777 freighters ordered last week will be delivered in fiscal 2023 and thereafter. Thus, the FedEx deal will have a limited impact on keeping the 777 line busy until production of the next-generation 777X ramps up. That said, Boeing and FedEx have routinely moved orders around in recent years. The two companies might strike a deal to accelerate some 777 deliveries, if needed.

More widebody orders could come soon

After Boeing adds the FedEx deal to its firm order book, it will have picked up 137 net firm orders in 2018 (assuming no further cancellations). That would already be more than it received in all of 2016.

Furthermore, Boeing is likely to win more widebody orders next month at the Farnborough Airshow, the largest industry trade show of the year. It already has some sizable commitments that could soon be converted into firm orders, including a deal for 40 787-10s with Emirates and a commitment for 10 787-9s from Hawaiian Holdings.

Several other airlines are mulling 787 Dreamliner orders, as well. That includes major customers such as United Continental and British Airways parent International Airlines Group, along with Saudi discount airline flynas.

Considering all of these potential deals -- plus others that may not have been reported -- Boeing could conceivably have around 250 net widebody orders for the year by the end of July. This surge in orders should give investors confidence that Boeing will be able to stick to its current production plans and continue to grow free cash flow over the next five years and beyond.

Sunday, June 24, 2018

Saudi Women Driving Is Better for Economy Than Aramco IPO

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Allowing Saudi women to drive could help the kingdom reap as much income as selling shares in Saudi Aramco.

The move, which went into effect on Sunday, could add as much as $90 billion to economic output by 2030, with the benefits extending beyond that date, according to Bloomberg Economics. Selling as much as 5 percent stake in Saudi Arabian Oil Co. -- at the most optimistic valuation -- could generate about $100 billion.

Saudi Arabia ended its status as the last country on earth to prohibit women from taking to the wheel. A handful of women drove through the still-packed streets of the capital early Sunday while others drove in convoys around Riyadh neighborhoods in celebration of the ban’s end. The decision would enable women to work without having to incur the cost of a driver or taxis.

“Lifting the ban on driving is likely to increase the number of women seeking jobs, boosting the size of the workforce and lifting overall incomes and output,” according to Ziad Daoud, Dubai-based chief Middle East economist for Bloomberg Economics.

“But it’ll take time before these gains are realized as the economy adapts to absorbing growing number of women seeking work.”

Read More: Midnight Cheers and Disbelief as Saudis End Ban on Women Driving

Ending the ban is one of the most socially-consequential reforms implemented by Saudi Arabia’s Crown Prince Mohammed bin Salman. It’s also a key part of his plan to veer the economy from its reliance on oil.

What Our Economists Say:“The participation of women in Saudi Arabia’s labor market is poor. With only 20% of females in Saudi Arabia economically active, the country even lags behind its neighbors in the Gulf, where participation averaged 42% in 2016. Recognizing this, the Saudi administration made raising the female participation rate one of its main targets in the National Vision 2030 program, designed to modernize Saudi society.”

Ziad Daoud, Bloomberg Economics. Full report here  

Read More: Why Some Saudi Women Will Keep Their Driving Licenses a Secret

Adding 1 percentage point to the Saudi participation rate every year might add about 70,000 more women a year to the labor market, according to Daoud. The larger participation of women will lift potential economic growth by as much as 0.9 percentage points a year, “depending on the proportion that chooses to work full or part-time,” he said.

Saturday, June 16, 2018

Comparing Cars.com (CARS) & Sphere 3D (ANY)

Cars.com (NYSE: CARS) and Sphere 3D (NASDAQ:ANY) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

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This is a breakdown of recent ratings for Cars.com and Sphere 3D, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cars.com 0 2 3 0 2.60
Sphere 3D 0 0 0 0 N/A

Cars.com currently has a consensus target price of $34.38, indicating a potential upside of 16.05%. Given Cars.com’s higher possible upside, equities research analysts clearly believe Cars.com is more favorable than Sphere 3D.

Profitability

This table compares Cars.com and Sphere 3D’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cars.com 31.35% 9.11% 5.63%
Sphere 3D -31.80% -84.04% -11.62%

Earnings & Valuation

This table compares Cars.com and Sphere 3D’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cars.com $626.26 million 3.40 $224.44 million $2.28 12.99
Sphere 3D $81.52 million 0.09 -$26.18 million N/A N/A

Cars.com has higher revenue and earnings than Sphere 3D.

Institutional and Insider Ownership

6.6% of Sphere 3D shares are held by institutional investors. 0.0% of Cars.com shares are held by insiders. Comparatively, 1.1% of Sphere 3D shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Cars.com beats Sphere 3D on 8 of the 10 factors compared between the two stocks.

About Cars.com

Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.

About Sphere 3D

Sphere 3D Corp. provides data management, and desktop and application virtualization solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It enables organizations to deploy a combination of public, private, or hybrid cloud strategies through containerized applications, virtual desktops, virtual storage, and physical hyper-converged platforms. The company offers RDX removable disk systems that provide scalability, centralized management, encryption and duplication, and reliability for backup, archive, data interchange, and disaster recovery; G-Series Appliance and G-Series Cloud applications; and Glassware Open Virtual Appliance and Open Virtual Format products. It also provides HVE converged and hyper-converged Infrastructure solutions, such as HVE-STACK high density server solution; HVE-VELOCITY high availability dual enclosure storage area network solution; and HVE 3DGFX, a virtualized desktop infrastructure solution. In addition, the company offers SnapServer network attached storage solution, a platform for primary or nearline storage for integration with Windows, UNIX/Linux, and Macintosh environments; NEO tape-based backup and long-term archive solutions, including tape libraries, autoloaders, and drives, as well as linear tape file system solutions; and LTO tape drives and media products. Sphere 3D Corp. markets its products under the RDX, Glassware 2.0, SnapCLOUD, SnapServer, SnapSync, NEO, and V3 brand names. The company sells its products through its distributor and reseller network to small and medium businesses, and distributed enterprises. Sphere 3D Corp. is headquartered in Mississauga, Canada.

Wednesday, May 30, 2018

Fed Gauges Show Factories Shift to Higher Gear After Soft April

The latest regional tallies on U.S. manufacturing so far this month should dispel any concern about industrial momentum in the wake of some soft April readings.

Factory gains were most pronounced for the Philadelphia and Kansas City Federal Reserve regions, while indexes for the mid-Atlantic, Texas and New York state showed more moderate expansion. By and large, producers reported improvements in orders growth, spurring labor-market indicators, and they also noted higher prices paid and received.

The latest figures show resilience in manufacturing even though the data suggested that respondents remained concerned about the adverse effects from U.S. tariffs on their business and on materials costs.

May Momentum

Manufacturing improved this month across five U.S. regions on firm orders

Source: Federal Reserve district banks

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The regional figures help provide economists with a basis for their estimates of the Institute for Supply Management’s closely followed manufacturing gauge, due Friday. The median forecast in a Bloomberg survey calls for an increase in May to 58.2 from an April reading of 57.3 that was the weakest since July of last year.

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Monday, May 28, 2018

PetIQ (PETQ) vs. Nu Skin Enterprises (NUS) Critical Review

Nu Skin Enterprises (NYSE: NUS) and PetIQ (NASDAQ:PETQ) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

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This is a summary of current recommendations for Nu Skin Enterprises and PetIQ, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nu Skin Enterprises 2 1 2 0 2.00
PetIQ 0 0 6 0 3.00

Nu Skin Enterprises presently has a consensus target price of $72.60, suggesting a potential downside of 9.34%. PetIQ has a consensus target price of $28.00, suggesting a potential upside of 34.87%. Given PetIQ’s stronger consensus rating and higher possible upside, analysts plainly believe PetIQ is more favorable than Nu Skin Enterprises.

Profitability

This table compares Nu Skin Enterprises and PetIQ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nu Skin Enterprises 5.74% 25.36% 11.54%
PetIQ 0.17% 11.39% 6.69%

Dividends

Nu Skin Enterprises pays an annual dividend of $1.46 per share and has a dividend yield of 1.8%. PetIQ does not pay a dividend. Nu Skin Enterprises pays out 45.2% of its earnings in the form of a dividend. Nu Skin Enterprises has increased its dividend for 17 consecutive years.

Institutional and Insider Ownership

76.8% of Nu Skin Enterprises shares are held by institutional investors. Comparatively, 67.0% of PetIQ shares are held by institutional investors. 5.2% of Nu Skin Enterprises shares are held by company insiders. Comparatively, 45.3% of PetIQ shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nu Skin Enterprises and PetIQ’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nu Skin Enterprises $2.28 billion 1.95 $129.43 million $3.23 24.79
PetIQ $266.69 million 1.91 -$3.49 million $0.39 53.23

Nu Skin Enterprises has higher revenue and earnings than PetIQ. Nu Skin Enterprises is trading at a lower price-to-earnings ratio than PetIQ, indicating that it is currently the more affordable of the two stocks.

Summary

Nu Skin Enterprises beats PetIQ on 10 of the 16 factors compared between the two stocks.

Nu Skin Enterprises Company Profile

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. It provides skin care systems and targeted treatment products, including ageLOC Me customized skin care systems, ageLOC Spa systems, and ageLOC LumiSpa skin treatment and cleansing devices; and Epoch products, as well as a range of other cosmetic, personal care, and hair care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, and LifePak nutritional supplements, as well as other anti-aging nutritional solutions and weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates walk-in centers and pick-up locations; and retail stores and service centers in Mainland China. The company sells its products directly, as well as through distributors and Website. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.

PetIQ Company Profile

PetIQ, Inc. develops, manufactures, and distributes pet medications, and health and wellness products for dogs and cats in the United States, Canada, and Europe. It offers pet prescription medications, including products for arthritis, thyroid, and diabetes and pain treatments, as well as heartworm preventatives, antibiotics, and other specialty medications; over-the-counter medications and supplies, such as flea and tick control products in various forms comprising spot on treatments, chewables, and collars; and health and wellness products consisting of specialty treats and other pet products, which include dental treats and nutritional supplements. The company provides its products primarily under the VetIQ, PetAction Plus, Advecta, PetLock Plus, and TruProfen brands. It sells its products through distributors as well as through retail stores, including approximately 40,000 retail pharmacy locations. PetIQ, Inc. was founded in 2010 and is headquartered in Eagle, Idaho.

Friday, May 25, 2018

Gruss & Co Inc Buys iShares MSCI China ETF, CBS Corp, ProShares UltraShort Lehman 20 Year Treasury,

West Palm Beach, FL, based Investment company Gruss & Co Inc buys iShares MSCI China ETF, CBS Corp, ProShares UltraShort Lehman 20 Year Treasury, Walmart Inc, iShares MSCI Japan Index Fund, Vornado Realty Trust, Walt Disney Co, sells Facebook Inc, Biogen Inc, Schlumberger, Alphabet Inc, Alphabet Inc during the 3-months ended 2018-03-31, according to the most recent filings of the investment company, Gruss & Co Inc. As of 2018-03-31, Gruss & Co Inc owns 32 stocks with a total value of $92 million. These are the details of the buys and sells.

New Purchases: MCHI, CBS, TBT, WMT, EWJ, VNO, Added Positions: DXJ, DIS, FRBK, P, Reduced Positions: FB, AMZN, BIIB, SLB, GOOG, GOOGL, GOGL, BX, WPC, BXMT, Sold Out: TMUS, OSG, CELG, IP,

For the details of GRUSS & CO INC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GRUSS+%26+CO+INC

These are the top 5 holdings of GRUSS & CO INCAmazon.com Inc (AMZN) - 11,300 shares, 17.71% of the total portfolio. Shares reduced by 14.07%Apple Inc (AAPL) - 42,250 shares, 7.68% of the total portfolio. SPDR Gold Trust (GLD) - 52,500 shares, 7.15% of the total portfolio. WisdomTree Japan Hedged Equity Fund (DXJ) - 117,500 shares, 7.13% of the total portfolio. Shares added by 17.50%Microsoft Corp (MSFT) - 70,500 shares, 6.97% of the total portfolio. New Purchase: iShares MSCI China ETF (MCHI)

Gruss & Co Inc initiated holding in iShares MSCI China ETF. The purchase prices were between $65.39 and $76.72, with an estimated average price of $70.97. The stock is now traded at around $69.09. The impact to a portfolio due to this purchase was 2.6%. The holding were 35,000 shares as of 2018-03-31.

New Purchase: CBS Corp (CBS)

Gruss & Co Inc initiated holding in CBS Corp. The purchase prices were between $49.27 and $60, with an estimated average price of $55.05. The stock is now traded at around $50.95. The impact to a portfolio due to this purchase was 2.23%. The holding were 40,000 shares as of 2018-03-31.

New Purchase: ProShares UltraShort Lehman 20 Year Treasury (TBT)

Gruss & Co Inc initiated holding in ProShares UltraShort Lehman 20 Year Treasury. The purchase prices were between $34.19 and $39.68, with an estimated average price of $37.13. The stock is now traded at around $37.49. The impact to a portfolio due to this purchase was 1.77%. The holding were 45,000 shares as of 2018-03-31.

New Purchase: Walmart Inc (WMT)

Gruss & Co Inc initiated holding in Walmart Inc. The purchase prices were between $85.42 and $109.55, with an estimated average price of $96.5. The stock is now traded at around $82.86. The impact to a portfolio due to this purchase was 1.45%. The holding were 15,000 shares as of 2018-03-31.

New Purchase: iShares MSCI Japan Index Fund (EWJ)

Gruss & Co Inc initiated holding in iShares MSCI Japan Index Fund. The purchase prices were between $58.28 and $64.67, with an estimated average price of $61.39. The stock is now traded at around $60.11. The impact to a portfolio due to this purchase was 1.31%. The holding were 20,000 shares as of 2018-03-31.

New Purchase: Vornado Realty Trust (VNO)

Gruss & Co Inc initiated holding in Vornado Realty Trust. The purchase prices were between $65.15 and $77.32, with an estimated average price of $69.34. The stock is now traded at around $67.57. The impact to a portfolio due to this purchase was 0.73%. The holding were 10,000 shares as of 2018-03-31.

Added: Walt Disney Co (DIS)

Gruss & Co Inc added to a holding in Walt Disney Co by 25.00%. The purchase prices were between $98.54 and $112.47, with an estimated average price of $106.26. The stock is now traded at around $102.02. The impact to a portfolio due to this purchase was 0.33%. The holding were 15,000 shares as of 2018-03-31.

Sold Out: T-Mobile US Inc (TMUS)

Gruss & Co Inc sold out a holding in T-Mobile US Inc. The sale prices were between $57.69 and $65.6, with an estimated average price of $62.56.

Sold Out: Overseas Shipholding Group Inc (OSG)

Gruss & Co Inc sold out a holding in Overseas Shipholding Group Inc. The sale prices were between $1.7 and $2.93, with an estimated average price of $2.33.

Sold Out: Celgene Corp (CELG)

Gruss & Co Inc sold out a holding in Celgene Corp. The sale prices were between $84.98 and $109.14, with an estimated average price of $96.

Sold Out: International Paper Co (IP)

Gruss & Co Inc sold out a holding in International Paper Co. The sale prices were between $50.15 and $65.08, with an estimated average price of $58.67.



Here is the complete portfolio of GRUSS & CO INC. Also check out:

1. GRUSS & CO INC's Undervalued Stocks
2. GRUSS & CO INC's Top Growth Companies, and
3. GRUSS & CO INC's High Yield stocks
4. Stocks that GRUSS & CO INC keeps buying

Thursday, May 24, 2018

GDPR Is Great News For Google And Facebook, Really

&l;p&g;Politicians are trying to build walls around&a;nbsp;&l;strong&g;Alphabet (GOOGL)&l;/strong&g;&a;nbsp;and&a;nbsp;&l;strong&g;Facebook (FB)&l;/strong&g;. Bless their hearts.

In April, the&a;nbsp;&l;em&g;Wall Street Journal&l;/em&g;&a;nbsp;ran a big&a;nbsp;&l;a href=&q;https://www.wsj.com/articles/how-europes-new-privacy-rules-favor-google-and-facebook-1524536324&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;story&l;/a&g;&a;nbsp;about Europe, privacy and the coming crackdown. The plot twist was positively Shakespearean. More regulation is likely to benefit current leaders.

It&a;rsquo;s a lesson in scale, network effects and unintended consequences.

&l;img class=&q;dam-image ap size-large wp-image-fd0fd4f722aa420eabc25ca32ab8daf6&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/fd0fd4f722aa420eabc25ca32ab8daf6/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; FILE- In this March 29, 2018, file photo the logo for Facebook appears on screens at the Nasdaq MarketSite in New York&s;s Times Square. Many companies large and small are updating their privacy policies and service terms to comply with upcoming European Union rules governing data and privacy. In preparation for GDPR, Facebook in March updated its privacy controls in hopes of making them easier to find and understand. (AP Photo/Richard Drew, File)

The General Data Protection Regulation will&a;nbsp;&l;a href=&q;https://www.eugdpr.org/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;go into effect&l;/a&g;&a;nbsp;throughout the European Union on May 25. After that date, businesses must get affirmative consent before collecting any personal data online.

This means every ad technology, online publisher, data broker and analytics firm that harvests personal data is going to need prior permission from consumers. That&a;rsquo;s not going to be a tough ask for Alphabet and Facebook.&a;nbsp;Consumers understand, and have come to depend on YouTube, Gmail, Google Maps, Instagram, WhatsApp and Facebook. Plus, their friends are there.

For the hundreds of smaller firms with no name recognition, or large networks, it is going to be considerably more difficult.

That&a;rsquo;s the opportunity for investors.

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Regulators should have seen this coming. Last fall, V&a;#283;ra Jourov&a;aacute;, the EU justice commissioner, travelled to Silicon Valley to meet with representatives from Alphabet and Facebook. She expected them to be nervous. Instead, &a;ldquo;they were more relaxed, and I became more nervous,&a;rdquo; she told the&a;nbsp;Wall Street Journal.

Alphabet and Facebook managers must have thought they won the lottery.

Erecting barriers to entry helps the companies already on the inside. It&a;rsquo;s economics 101.&a;nbsp;Competitors are forced to grow larger, faster to climb the barriers.&a;nbsp;This usually involves more costs and a big change in business strategy. And if they get inside, it&a;rsquo;s harder to make profits because of the increased costs.

Alphabet sells seven digital products with more than 1 billion users.&a;nbsp;Facebook has 2.13 billion monthly users and a slew of popular mobile apps.&a;nbsp;Spreading fixed costs across so many users is a powerful competitive advantage.

Smaller companies will not get that luxury.&a;nbsp;They also will not get the benefit of entrenched brands and the network effects.&a;nbsp;It is tough to leave Facebook or YouTube when that&a;rsquo;s where your friends and family meet, and your favorite shows post content.

GDPR could be a death sentence for many smaller digital firms.

Companies that have always operated behind the scenes are being forced out into the open.&a;nbsp;Consumers will vote up or down, to trust them with personal data.&a;nbsp;Many at technology firms see the writing on the wall. They are&a;nbsp;&l;a href=&q;https://digiday.com/media/ad-tech-firms-quitting-europe-blaming-gdpr-often-scapegoat/&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;already leaving&l;/a&g;&a;nbsp;Europe.

In 2017, eMarketer, a digital advertising research company, forecast&a;nbsp;&l;a href=&q;https://www.emarketer.com/Report/Worldwide-Ad-Spending-eMarketers-Updated-Estimates-Forecast-20162021/2002145&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;global digital ad spend&l;/a&g;&a;nbsp;would climb 19.1% in 2017, to $228.4 billion. Alphabet and Facebook accounted for $151 billion in digital sales.&a;nbsp;&l;strong&g;Alibaba (BABA)&l;/strong&g;&a;nbsp;and&a;nbsp;&l;strong&g;Baidu (BIDU)&l;/strong&g;&a;nbsp;captured $35 billion.

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GDPR, and the possibility the underlying policy will spread across the globe, means the remaining digital ad market share is up for grabs.

eMarketer believes the total market will reach $375 billion by 2021.

I have been an full-throated Alphabet and Facebook bull.&a;nbsp;I have urged my members to buy every meaningful decline because these are dominant companies. And frankly, the critics are wrong. The prospect for regulation is not a negative.

So many cutting edge technologies are converging. There is so much opportunity for invention. Yet, scale and network effects have never been more important.

Investors need to be focused on companies that have built scale, dominant networks and remain on the cutting edge of what is possible.

One of my long-term favorites is&a;nbsp;&l;strong&g;Microsoft (MSFT)&l;/strong&g;. The Redmond software giant is often overlooked because it is not as flashy as the FANG stocks. However,&a;nbsp;Office&a;nbsp;is the dominant corporate productivity platform. In business, Word, Excel and Powerpoint are ubiquitous.

Microsoft has cleverly leveraged that franchise into a robust cloud computing business.

Last week, the company reported first quarter cloud&a;nbsp;&l;a href=&q;https://www.nytimes.com/2018/04/26/technology/microsoft-cloud-quarterly-report.html&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q; target=&q;_blank&q;&g;revenues surged&l;/a&g;&a;nbsp;93%, versus a year ago.&a;nbsp;According to Synergy Research, its market share rallied 3%, to 13%.&a;nbsp;Although that is a long way behind Amazon Web Services, the industry leader at 34%, the trend is in the right direction.

Microsoft is growing market share in a segment&a;nbsp;&l;strong&g;Gartner (IT)&l;/strong&g;, a global IT research firm,&a;nbsp;&l;a href=&q;https://www.forbes.com/sites/louiscolumbus/2017/10/18/cloud-computing-market-projected-to-reach-411b-by-2020/#1406cf1e78f2&q; target=&q;_blank&q; rel=&q;noopener noreferrer&q;&g;expects to reach&l;/a&g;&a;nbsp;$411 billion by 2020.

The bottom line is that investors should not be afraid of owning big companies; they have all the advantages, and can accept higher regulatory costs at a much scale than their smaller rivals.&l;/p&g;

Tuesday, May 22, 2018

Elon Musk: The amped-up version of Tesla's Model 3 will cost $78,000

Elon Musk just laid out plans for the superfast version of the Tesla Model 3.

Musk said on Twitter over the weekend that the performance version of the Model 3 will sell for about $78,000.

That's more than double the price of the basic Model 3, which starts at $35,000.

Musk said the price is comparable to the BMW M3, a high-performance version of the BMW 3-series sedan. But the high-end Tesla Model 3 will be "15% quicker [and] with better handling," he said.

"Will beat anything in its class on the track," Musk tweeted.

(The M3 starts at $66,500, according to BMW's website.)

The amped-up Model 3 will be able to go from zero to 60 miles per hour in 3.5 seconds, and has a driving range of 310 miles, according to the initial specs.

Cost of all options, wheels, paint, etc is included (apart from Autopilot). Cost is $78k. About same as BMW M3, but 15% quicker & with better handling. Will beat anything in its class on the track.

— Elon Musk (@elonmusk) May 20, 2018

Only black and white interiors will be available initially because of a parts limitation, Musk said.

The car will feature a dual motor system, with one motor optimized for power and one for driving range.

There is currently a dual motor, all-wheel drive option for Model 3s for an extra $5,000. Musk said the performance model will accelerate more quickly and have a higher top speed than cars with the regular all-wheel drive option, however.

While a faster Model 3 sounds nice, the basic Model 3 has had enormous trouble just getting off the assembly line.

The production troubles have been so acute that Moody's downgraded Tesla debt deep into junk status earlier this year.

In February, Tesla said it had taken deposits and orders for more than 500,000 Model 3s in the last two years. But it had built only 12,500 through the end of March.

Recently production has increased to more than 2,200 cars a week. Tesla has said it plans to hit 5,000 Model 3s per week by the end of June.

Shortly before sharing the specs for the Tesla Model 3 performance version, Musk mentioned a service option called Tesla Ranger, in which a technician will come and "take care of your car" after just a few taps on a smartphone.

There's no need for paperwork or to bring the car in yourself, Musk said on Twitter.