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04/03/2020 02:18 PM
Dow 15,000 very likely as coronavirus pandemic hits U.S. economy: strategist

Dow 15,000 very likely as coronavirus pandemic hits U.S. economy: strategistThe coronavirus pandemic isn't done yet, bringing pressure to the stock market, pros say.

04/05/2020 11:52 AM
Coronavirus pandemic leading to 'unprecedented' financial pain for U.S. households, survey shows

Coronavirus pandemic leading to 'unprecedented' financial pain for U.S. households, survey showsFinancial pain for U.S. households triggered by the coronavirus pandemics is starting to show, according to a new survey.

04/04/2020 06:37 PM
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up!

Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up!Get ready for some incredible price moves in the metals markets and congrats to all the Gold and Silver bugs out there.  Our analysis says our patience and accumulation of physical metals will soon pay off in a big way.

04/05/2020 06:42 AM
Warren Buffet’s Berkshire Hathaway Divests Delta, Southwest Airlines Stock

Warren Buffet’s Berkshire Hathaway Divests Delta, Southwest Airlines StockBillionaire investor Warren Buffett’s Berkshire Hathaway sold about 18% of its stake in Delta Air Lines Inc. (DAL) for $314 million as the U.S. airline operator said it expects revenues to plunge 90% in the second quarter.Berkshire sold about 13 million Delta shares on Wednesday and Thursday priced between $22.96 and $26.04, according to SEC filings. Separately, Buffet’s Berkshire also divested about 4% of its stake in Southwest Airlines Co. (LUV) dumping about 2.3 million shares for about $74 million, SEC filings show. Delta shares, which were trading around $59 at the start of the year, slid 0.1% to $22.48 on Friday.The sales come as Delta CEO Ed Bastian warned that the embattled airline expects second-quarter revenue to drop 90%.“Delta is burning more than $60 million in cash every day, we know we still haven’t seen the bottom,” Bastian wrote in a memo to employees. “Without the self-help actions we are taking to save costs and raise new financing, that money would be gone by June.”At the end of last month, five-star analyst Michael Linenberg at Deutsche Bank raised Delta’s rating to Buy from Hold. Overall Wall Street analysts have a Moderate Buy consensus rating for Delta, which is split into 7 Buys and 5 Holds. The $51 analyst average price target implies a staggering 127% yield should the airline industry recover and the target be met in the coming 12 months. (Delta’s stock analysis on TipRanks)Bastian added that the airline continues to shrink its network as demand falls and will operate just enough flying to maintain essential services. In April, the airline’s schedule will be at least 80% smaller than originally planned, with 115,000 flights cancelled.Buffet’s Berkshire is also a big investor in two other U.S. carriers American Airlines Group Inc (AAL) and United Airlines Holdings Inc (UAL).Related News: Hang in There, Upwork Investors, Better Days Ahead, Says Analyst Western Digital Is Our ‘Best COVID-19 Recovery Idea,’ Says 5-Star Analyst Boeing to Offer Voluntary Layoffs to Contain Coronavirus Damage More recent articles from Smarter Analyst: * General Motors, Honda Join Forces to Build Two Electronic Cars * RBC: 3 Outstanding Dividend Stocks Yielding at Least 9% * Zoom Admits Some Calls Were ‘Mistakenly’ Routed Through China * Will These 3 Coronavirus Stocks Lead the Market to Recovery?

04/05/2020 10:05 AM
Saudi Arabia, Russia Push Negotiations for Global Oil Pact

04/03/2020 02:59 PM
Gilead Sciences’ Coronavirus Treatment Has Big-Time Potential

Gilead Sciences’ Coronavirus Treatment Has Big-Time PotentialThe coronavirus continues to sweep across the world. It's hitting Europe and the U.S. hard after the outbreak began in China. Despite the hellish reality of Covid-19, we're seeing individual companies step up, like Gilead Sciences (NASDAQ:GILD). As a result, GILD stock is up 16.3% year-to-date and 9% over the past month.Some investors may look at that and say, "so what?"But compare that to the SPDR S&P 500 ETF (NYSEARCA:SPY), which is down 22% and 15.3% in the same time frame and you can understand why Gilead has stood out. It's also why it has the potential to shine even brighter in the coming weeks and months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Gilead vs. Covid-19The virus is bringing out the best in many American companies. Ford (NYSE:F), General Motors (NYSE:GM) and Tesla (NASDAQ:TSLA) are producing ventilators. Gap (NYSE:GPS), Ralph Lauren (NYSE:RL) and others are producing scrubs, gowns and other supplies. Breweries are making hand sanitizer. We're stepping up. And so is biotech. * 10 Stocks to Buy Whose Companies We Can't Live Without Gilead is working on a Covid-19 treatment with a drug called remdesivir. On March 23, the FDA granted remdesivir "orphan status." That designation would, among other things, give it exclusivity rights. However, just a few days later Gilead filed with the FDA to remove that status. Click to Enlarge Source: Chart courtesy of Statista, Source from WHO The company said it could maintain an "expedited timeline" without the status, and that the designation is meant to apply for infections impacting less than 200,000 Americans. With more than 215,000 confirmed coronavirus cases in the U.S. and growing rapidly, it's clear the number will be far higher.Gilead CEO Daniel O'Day recently said that remdesivir is "a medicine we had been studying for many years as part of our extensive research in antivirals … Multiple studies are ongoing, and we are on track to have initial data in the coming weeks."On April 1, the company initiated two Phase 3 trials for remdesivir for use in patients with moderate to severe Covid-19.This is all moving along very quickly. If Gilead sees promising results, not only is that huge for Gilead but it's huge for the world. We need some sort of positive catalyst here. Not just for the stock market, but for humanity. People are growing tired of being on lockdown orders and anxiety is creeping higher for many out of work.If Gilead's remdesivir works, it could be a game changer. Sizing Up GILD Stock Click to Enlarge Source: Chart courtesy of StockCharts.comA glance at the chart above highlights what life has been like for long-term investors in Gilead. Simply put, the stock has been a painful one to own. Shares embarked on a brutal decline from a high north of $100 in 2015 to a low near $57.50 in 2017. It has since been trying to carve out a bottom.Shares moved slowly but constructively higher in 2019, leading to a breakout in 2020. Of course, that's on the back of the company's remdesivir hopes, putting Gilead in a somewhat binary situation.Binary situations are generally unattractive from an investment perspective, particularly when they center around a treatment being accepted or rejected. As it stands though, investors may be safe buying a pullback into the $65 to $70 area. As long as GILD stays above $65, its technicals are in good shape.On the upside, look for a rally back up to resistance between $77.50 to $80. A breakout over $80 puts the recent highs near $86 on the table.While Gilead shares has been hammered over the years, its fundamentals have deteriorated a bit over that time as well. But -- and this is a big but -- Gilead Sciences is not your typical fly-by-night binary biotech play. It's a low valuation, cash-rich healthcare titan.The company boasts $24.3 billion in cash -- $19.4 billion including its recent acquisition of Forty Seven (NASDAQ:FTSV). Trailing free cash flow is north of $8.3 billion, with revenue and net income of $22.4 billion and $5.4 billion, respectively. Gilead may not be in its prime, but it's a very profitable machine.Investors could do worse than pay 11.3 times this year's earnings for a company like Gilead, with the upside kicker being remdesivir.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Gilead Sciencesa€™ Coronavirus Treatment Has Big-Time Potential appeared first on InvestorPlace.

04/03/2020 01:42 PM
The Great Recession Provides the Owners of Royal Caribbean Stock With Perspective

The Great Recession Provides the Owners of Royal Caribbean Stock With PerspectiveThere is no way to describe Royal Caribbean Cruises's (NYSE:RCL) year without including the words "devastatingly poor." The coronavirus has brought RCL stock to its knees. In the first quarter of this year, the shares delivered a total return of -75%, more than double the loss of the U.S. stock markets as a whole. Source: Laszlo Halasi / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsLooking back at the cruise line's financial situation before and after the Great Recession will give investors some perspective on what to do during the current crisis. A detached look at the past shows that Royal Caribbean can overcome the current obstacles it faces. It might provide you with the information you need to determine if its shares are a good value play or a value trap. Where to Begin?Royal Caribbean's stock hit a low of $5.40 on Mar. 3, 2009. On Mar. 9, the S&P 500 bottomed, starting the longest bull market in U.S. history. A year later, Royal Caribbean was trading at almost $25. A year after that it had almost doubled. In two short years, Royal Caribbean's stock had increased by 789%. I'm not suggesting trying to time the bottom of RCL stock. I'm merely pointing out that the financial firestorm that was the financial crisis didn't put the company in the ground. It battled back. * 7 Telecom Stocks That Are Worth a Close Look While it seems impossible to think that Americans will return to cruise ships after what many have been through in various ports around the world, people are creatures of habit. They like what they like. The cruise sector might not return to normal for 12 months or even 24 months, but it will eventually bounce back. InvestorPlace columnist Brad Moon recently pointed out that few people remember the 2014 norovirus outbreak on Royal Caribbean's Explorer of the Seas. The virus made 700 of the ship's passengers sick. The words "this time is different" come to mind. This phrase was first uttered by legendary investor John Templeton way back in 1933, describing the tendency of investors to conveniently forget that history repeats itself. Sure, every situation brings new wrinkles to the table, but generally, we've pretty much seen this story before. Those with the courage to go against the grain will profit greatly. I just don't see people giving up cruising. Maybe I'll be proven dead wrong, but I doubt it. Royal Caribbean's Financial Situation Then and NowInterestingly, while Royal Caribbean's stock cratered during the Great Recession, its business didn't. In the years 2010, 2009, and 2008, it had annual revenue of $6.75 billion, $5.89 billion, and $6.5 billion, respectively. Considering the economy had fallen into the toilet during those three years, the cruise sector barely lost a step. In an October 2008 interview, CEO Richard Fain was exceptionally optimistic about the future. "They [customers] look at the value of a cruise versus a land holiday, and the more they look, the better off we are," Fain stated at the time. "Discounting will affect our business, but we have the ability to do more and offer more to our guests and that will serve us well in the long term."While I'm not a fan of cruises -- despite getting married on one -- I can see the allure. Multi-generational families can take a trip together without having to worry about the logistics of visiting three or four different places on the trip. And even though cruises have gotten more expensive as ships have become more amenity-filled, they are still a great way for large groups to enjoy a trip together. On Mar.. 23, Royal Caribbean announced that it had obtained a $2.2 billion, 364-day secured term loan facility that can be extended by an additional year, if needed. It has drawn down the entire amount to handle the downturn in its business. Between the cash on its balance sheet and its existing revolving credit facility, it has $3.6 billion of liquidity to help it cope with the downturn. "This is a period of unprecedented disruption for the cruise industry," said Jason T. Liberty, the company's executive vice president and CFO. "We continue to take decisive actions to protect the company's financial and liquidity positions as they enable us to keep focused on our guests, our crew and our long-term plans." Royal Caribbean currently pays out a 78-cent quarterly dividend that is yielding 10.7%. In 2019, it paid out $602.7 million of dividends and made $100 million of share repurchases. I think it's safe to assume that if travel bans and at-home restrictions remain in place past the end of April (which is very likely), the company won''t return any money to shareholders for the remainder of 2020 and possibly into 2021.Investors absolutely can't count on the dividend at this point. Cruise ships cannot be maintained on a shoestring budget, but all the major cruise operators have enough access to loans to get them through the current crisis. "There is meaningful cash burn as the ships are idle. But I do think these companies all have strong support from their banking groups," Deutsche Bank analyst Chris Woronka told Barron's recently. "You would prefer to have some operation during the peak summer period, but it's unknown exactly what that's going to look like. You're going to scale back into profitability. It's not a switch where you go from zero to normal. It's going to be a process to build back to profitability, but it starts with getting some sailings going again."If you go back to 2009, when the company had its lowest net income in the past decade, it still made $162 million on $5.89 billion of revenue. A decade later, Royal Caribbean had $1.9 billion of net income from $11 billion in sales. Its net margin went from 2.8% in 2009 to 17.3% in 2019. Let's assume that Royal Caribbean's revenues will drop by 40% and its net margins will fall back to 2009 levels. That would mean $6.6 billion of sales and net income of just $185 million. While its free cash flow would go from positive to negative, the company would still be making money. The Bottom Line on RCL StockRichard Fain has been the CEO of Royal Caribbean for 32 years. Back in 1988, when he took the helm, the company had annual revenue of just $520 million. In 2019, its profits were almost four timesits 1988 sales. He's seen the company through the Great Recession, 9/11, the Dot.com bubble, and many other more minor incidents. I believe if anyone can get Royal Caribbean through the crisis, it's Richard Fain. That's why I called Royal Caribbean one of seven stocks to buy on coronavirus weakness. This year is not going to be pretty for Royal Caribbean's shareholders. But history shows that there is light at the end of the tunnel. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post The Great Recession Provides the Owners of Royal Caribbean Stock With Perspective appeared first on InvestorPlace.

04/03/2020 03:34 PM
Investors Are Wondering: Where’s Warren Buffett?

Investors Are Wondering: Where’s Warren Buffett?WWWD? What Will Warren Do? Everyone knows legendary investor Warren Buffett of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) stock never lets a crisis go to waste. No one since J.P. Morgan has taken advantage of more crises than the 89-year-old Sage of Omaha.Source: Krista Kennell / Shutterstock.com We know he's been getting ready. Berkshire Hathaway held $128 billion of cash at the end of 2019 . Most was locked in U.S. government bills and notes.With new bills now earning less than 1%, and 10% of the workforce suddenly unemployed, this would seem to be a perfect opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nothing So Far for BRK.B StockThe only public move so far has been to raise even more cash. Specifically, Buffett has borrowed yen and euros. Because government paper there carries a negative interest rate, he can literally raise cash for nothing. * 7 Restaurant Stocks to Buy for a Big Rebound Berkshire's 13F for the last quarter of 2019 shows it buying shares in Kroger (NYSE:KR) and Biogen (NASDAQ:BIIB). These companies are doing well. But Berkshire also bought shares in RH (NYSE:RH), the merchants formerly known as Restoration Hardware; General Motors (NYSE:GM); and Occidental Petroleum (NYSE:OXY), which have been hammered. To this you can also add losses in portfolio stocks, like Apple (NASDAQ:AAPL), American Airlines (NYSE:AAL), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and American Express (NYSE:AXP). Berkshire also owns a lot of Amazon.Com (NASDAQ:AMZN).There are rumors of Buffett circling all the hardest-hit sectors -- the airlines, the hotels, the casinos. These businesses, for now, are virtually out of business. But he hasn't yet struck.Instead he's relaxing at his Omaha home, drinking Coca-Cola (NYSE:KO), which is down 20% this year. He is doing good works, like helping Goldman Sachs (NYSE:GS) get needed masks to Mt. Sinai Hospital in New York. Why Wait?One reason Buffett may continue to hold cash is that Berkshire Hathaway is mostly an insurance company.As its recent annual report shows Berkshire owns GEICO, as well as some of the biggest insurance and re-insurance operations in the world.It also owns utilities, railroads, and several industrial companies hit hard by the virus. Some of its businesses, like McLane Co., which distributes groceries, are essential. Others like Benjamin Moore and Shaw Industries, which make paint and carpets, aren't. Taken together it's a rough collection for these tough times. Berkshire stock is down by one-quarter for the year. It may need cash to keep its own units afloat. We Need WarrenLike many companies, Berkshire-Hathaway had to cancel its annual meeting. But the world is waiting to hear from Buffett anyway. Mostly it's waiting to see him pull the trigger on a deal.Right now he has the cash to buy Tesla (NASDAQ:TSLA), Starbucks (NASDAQ:SBUX) or McDonald's (NYSE:MCD). But that's not how he does business in a panic.Instead, he waits for the panic to hit a peak, then takes premium assets at giveaway prices. That's what he did in the Great Recession. He advised bailing out banks and later got about 10% of Bank of America at a fabulous discount.That's what may be expected this time, a swoop into companies that might otherwise go out of business. Those deals, when they come, will mark the climax of the present bear market. The Bottom LineWarren Buffett turns 90 in August. His long-time business partner, Charlie Munger, is even older. His reported successors, insurance executive Ajit Jain and energy executive Greg Abel, are not investors. Ted Wechsler has the title of investment manager for Berkshire. Another potential CEO is Todd Combs, who now runs GEICO. Neither has a high public profile.While waiting to see how Buffett saves us this time, ask who will save us next time?Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in WFC, AAPL and AMZN. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Investors Are Wondering: Wherea€™s Warren Buffett? appeared first on InvestorPlace.

04/03/2020 01:48 PM
Here's the difference between jobless claims and the unemployment rate

Here's the difference between jobless claims and the unemployment rate	In the latest edition of Yahoo U, Yahoo Finance’s Brian Cheung joins the On The Move to break down the difference between jobless claims and the unemployment rate.

04/04/2020 11:41 PM
U.S Mortgage Rates Slide Again, with Purchase Applications also on the Slide

U.S Mortgage Rates Slide Again, with Purchase Applications also on the SlideMortgage rates slide, as risk aversion and a slide in applications weigh. A 3rd weekly decline could be on the cards as COVID-19 hits the labor market.

04/05/2020 06:58 AM
3 Coronavirus Stocks That Could Lead the Market to Recovery

3 Coronavirus Stocks That Could Lead the Market to RecoveryAlmost three months have passed since COVID-19 began its spread beyond China’s borders, and the market remains in free fall. Capping off another volatile week, stocks fell on Friday April 3 in response to disappointing U.S. economic data, offsetting gains posted in the previous session. Based on a new report from the Labor Department, the U.S. economy saw 701,000 jobs erased in March, much more than economists originally expected as the figure doesn’t even include the 10 million unemployment filings that occurred after March 14. In addition, New York Governor Andrew Cuomo announced on Friday that the state had experienced the biggest jump in COVID-19-related deaths the day before, sending the market plummeting even further. For those investors feeling hopeless right now, there’s a bright spot on the horizon. Several companies have stepped up to the plate, developing innovative solutions to fight off the deadly virus. According to some Wall Street pros, these new technologies represent a possible inflection point in the war against COVID-19, and could even help drive the stock market’s recovery. Taking all of this into consideration, we used TipRanks’ database to get more information on three stocks at the frontline of the COVID-19 battle. The investing platform revealed that all of these Buy-rated tickers have been flagged by some analysts for their technology’s huge potential. Let’s get started. Abbott Laboratories (ABT) In the fight against COVID-19, Abbott’s tests to identify the virus have helped healthcare providers make significant headway. Along with its molecular test that is already being used in labs throughout the U.S., the company revealed on April 3 that the FDA granted emergency use authorization (EUA) for a rapid coronavirus testing system. As the product can detect positive results in five minutes and negative results in 13 minutes, much faster than any other available COVID-19 tests, Wall Street focus has locked in on ABT. Weighing in for Barclays, analyst Kristen Stewart believes the test will be performed on the ID NOW platform, an isothermal nucleic acid amplification technology, and thus offers advantages that go beyond its speed. “The system is easy to use with minimal training. The tests are CLIA waived, which is an advantage and allows for the placement in physician offices and urgent care offices. We estimate there are at least 15,000 systems in the United States, placed throughout physician offices, urgent care offices, and other healthcare facilities,” Stewart explained. As for the total opportunity, Stewart doesn’t dispute that Abbott’s manufacturing capacity, which she thinks would be the rate limiting factor as there is significant demand for the test, remains unclear. “The pricing would likely be under the non-CDC pricing ~$51 level, perhaps in the $35-$45 range. We hope Abbott would supply these details when it announces approval,” the analyst noted. That being said, 4 million of its molecular tests can be conducted each month on its m2000 systems, with ABT charging about $30 per test. As a result, Stewart kept an Overweight call and $98 price target on the stock. Should this target be met, a twelve-month gain of 23% could be in the cards. (To watch Stewart’s track record, click here) Turning now to other Wall Street analysts, the bulls have it. With 8 Buy ratings and 3 Holds assigned in the last three months, the consensus rating comes in as a Moderate Buy. The $97.89 average price target implies only slightly less upside potential than Stewart’s forecast. (See Abbott stock analysis on TipRanks)Johnson & Johnson (JNJ) Next up is a consumer goods and healthcare heavyweight, Johnson & Johnson, which is developing a vaccine against COVID-19. After the company identified a lead candidate, one analyst thinks JNJ is one of the names capable of fueling the stock market’s turnaround. With a lead experimental vaccine candidate selected, Kristen Stewart, who also covers ABT, points out that at the latest, JNJ can kick off Phase 1 human clinical studies by September 2020. According to management, the first doses of the vaccine could be available under Emergency Use Authorization (EUA) in early 2021. Adding to the good news, JNJ has significantly expanded its partnership with the Biomedical Advanced Research and Development Authority (BARDA), with both entities pledging more than $1 billion to co-fund the vaccine’s development and clinical testing. If that wasn’t enough, Stewart notes “BARDA and JNJ have provided additional funding to allow expansion of ongoing work to identify anti-viral treatments against COVID-19.” However, while JNJ has ramped up the scaling of manufacturing capacity and has a target of supplying more than 1 billion vaccine doses, there is a risk that the candidate won’t eventually receive approval. Having said that, Stewart argues the real goal is to develop an affordable vaccine “on a not-for-profit basis for emergency pandemic use.” She added, “Thus we would anticipate the cost it would charge for the vaccine would recoup the cost of development, cost of scaling up the manufacturing, and cost of production. Thus, we would not look at the vaccine as being a windfall or major positive from a financial perspective. We believe J&J is doing the right thing and adhering to the company’s long-running Credo.” Despite the fact that its medical device business could take a hit as elective procedures are delayed, its COVID-19 vaccine candidate, balanced portfolio, strong balance sheet and dividend, yielding 2.8% and paying out $3.80 per share annually, reaffirm Stewart’s confidence. Bearing this in mind, she maintained a Buy rating and $173 price target. This implies shares could surge 29% in the next year. What does the rest of the Street have to say? Out of 9 recent reviews, 8 were bullish, making the consensus rating a Strong Buy. In addition, the $157.22 average price target brings the upside potential to 17%. (See Johnson & Johnson stock analysis on TipRanks) Gilead Sciences (GILD) Biotech Gilead Sciences has grabbed headlines left and right thanks to its experimental COVID-19 treatment, remdesivir. With the company now stating it will donate 1.5 million doses of the drug, which could treat 140,000 patients, it’s no wonder some analysts are standing firmly behind GILD. Shares are up 20% year-to-date, but Jeffries’ Michael Yee believes its growth story is still heating up. Looking at the big picture, he argues, “GILD remains a defensive positioning stock particularly in this macro environment. We appreciate short-term trading has been mostly dictated around market volatility risk-on/off and expectations on remdesivir for COVID-19 data starting in April.” That being said, there’s more to this biotech’s “improving story”. The company has placed a significant focus on expansion, with its recent M&A activity including a $5 billion deal with immuno-oncology company Forty Seven. Additionally, its second quarter Phase 3 filgotinib UC data readout could send shares on an upward trajectory as well as improve sentiment surrounding the drug’s differentiation from AbbVie. Yee already thinks that the pbo-adjusted remission rates imply that filgotinib is “competitive with other UC drugs.” Expounding on this, he stated, “While we expect investors to make cross-trial comparisons, we caution comparing directly to other UC datasets is imprecise due to differing baseline characteristics such as proportion of biologic naive/experienced and slightly different endpoints of the Mayo score. However -- recent commentary from GILD suggests positive confidence around results and good activity in both biologic naive and experienced.” With an August PDUFA date for filgotinib in RA, Yee does, however, acknowledge that a class label Black Box could be given as a result of uncertainty related to degree of bleeding difference between various JAK drugs. It’s also still unclear if filgotinib will be approved at the 200mg dose. Commenting on the second issue, Yee said, “In any case, it's reasonable to approve 200mg particularly if the MANTA interim look is OK but FDA is a conservative bunch. Also, even if not, we point out ABBV was only approved at the low dose in RA as well so it would not be a totally critical issue.” To this end, Yee reiterated a Buy recommendation and $89 price target, indicating 14% upside potential. (To watch Yee’s track record, click here) Looking at the consensus breakdown, 10 Buys, 9 Holds and 2 Sells add up to a Moderate Buy consensus rating. At $76.88, the average price target puts the downside potential at 2%. (See Gilead stock analysis on TipRanks)To find good ideas for coronavirus stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

04/04/2020 10:25 AM
Introducing Chesapeake Energy (NYSE:CHK), The Stock That Collapsed 99%

Introducing Chesapeake Energy (NYSE:CHK), The Stock That Collapsed 99%Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. For example, we...

04/03/2020 02:54 PM
Alibaba Stock Offers Investors a Beautiful Buying Opportunity

Alibaba Stock Offers Investors a Beautiful Buying OpportunityAfter a recent bounce, Alibaba (NYSE:BABA) is down almost 20% from its 52-week highs. That's notably better than the S&P 500, which is down about 27% from its highs. Given all the circumstances at the momentum, it's hard to determine if Alibaba stock is outperforming or underperforming expectations.Source: Kevin Chen Photography / Shutterstock.com While Alibaba is easily outperforming the S&P 500, it's lagging what many would consider its peers. For instance, JD.com (NASDAQ:JD) is down just 6.5% from its highs, while Amazon (NASDAQ:AMZN) is down 11.3%.So while there are some positives with Alibaba's performance, there are some questions as well.InvestorPlace - Stock Market News, Stock Advice & Trading Tips China Is BoomingBefore getting into Alibaba, something must be said about the bigger picture here. The company operates out of China, which surely every investor knows at this point. With a population of 1.38 billion, it has the most people of any country on earth. China's middle class is booming and growing at a staggering rate. Click to Enlarge Source: Chart courtesy of Statista, Source from Sina.com.cn; Euromonitor For illustrative purposes, check out these two charts. The first shows the sheer size of China's middle class. In 2002, the figure stood at just 80 million. This year, it's projected to be 700 million people. That's up almost 900% in less than two decades, and more than double the entire United States population. * 7 Restaurant Stocks to Buy for a Big Rebound The second chart, below, shows that in 2010, just 5% of China's population was considered middle class. This year, that figure is expected to stand at 48%, highlighting just how much wealth has been created in the country.These are the people who are driving growth in China. The middle class is fueling consumption, online ordering and GDP growth in China. As the world's second-largest economy and most populous country, China is set for steady and strong growth down a long runway. Click to Enlarge Source: Chart courtesy of Statista, Source from Sina.com.cn Admittedly, COVID-19 will deal a setback to the Chinese economy. But it will do that across the world -- it's not as if China will be singled out amid this nasty outbreak. In time, though, China and the world will recover. A Deeper Dive on Alibaba StockBecause of the secular growth in China's wealth, consumption plays are an obvious choice. It's why we like JD.com so much too. But not only is Alibaba a much bigger play in commerce than JD, it's also more diverse.In 2019, 66% of Alibaba's revenue came from China commerce revenue. That's down notably from 79% in 2016, even though Alibaba saw a drastic increase in total China commerce revenue, (up more than 100% from 2017 to 2019). The reason that its share of revenue decreased, despite rising sales, is due to other growth segments making up a larger portion of the revenue pie.For instance, cloud-computing revenue was up almost four-fold from 2017 to 2019, now making up Alibaba's largest non-commerce revenue stream. Digital entertainment, it's second-largest revenue generator ex-commerce, climbed 63% from 2017 to 2019.The diversity is great, but the reality is Alibaba generates most of its revenue from commerce, for which it has a dominant position in China. Its Tmall platform represented more than 61% of total gross merchandise value (GMV) market share in Q4 2018. While shopping may take a hit in the short term, online shopping is a long-term secular growth story.COVID-19 is bad for everyone, but at the end of the day, consumers still need to buy things. They aren't leaving their house to do it, which leaves e-commerce -- and Alibaba -- there to answer the call. BABA By the Numbers Click to Enlarge Source: Chart courtesy of Statista, Source from Alibaba Over the last four quarters, Alibaba has generated $24.7 billion in net income on $70.6 billion in sales. Profit of $9.48 per share values Alibaba stock at roughly 19.6 times earnings. That's a pretty darn good price for a company with multiple secular growth drivers (cloud, commerce, etc.) in motion in a country with a booming middle class.A reasonable valuation for unreasonably solid growth is simply too good to pass up. Alibaba stock is a buy on dips, especially as it continues to outperform the broader market amid the coronavirus outbreak.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Alibaba Stock Offers Investors a Beautiful Buying Opportunity appeared first on InvestorPlace.

04/04/2020 07:11 PM
Trump: ‘There Will Be a Lot of Death Unfortunately’

Trump: ‘There Will Be a Lot of Death Unfortunately’President Trump warned on Saturday that the coming days will be some of the worst for the coronavirus outbreak. Modeling shows New York, Detroit and New Orleans will hit the peak of their outbreaks in the next week. Photo: Bryan Smith/Zuma Press

04/04/2020 11:41 AM
Coronavirus will likely hit these states hardest financially, according to Moody's

Coronavirus will likely hit these states hardest financially, according to Moody'sNevada is likely to be hit the hardest financially by the coronavirus outbreak, according to research compiled by Moody’s Analytics.

04/05/2020 04:49 AM
China's Luckin Coffee says business will continue amid financial fraud probe

China's Luckin Coffee says business will continue amid financial fraud probeLuckin Coffee Inc said on Sunday it will maintain normal operations at its stores and apologised to the public, days after it announced an internal investigation had shown its chief operating officer and other employees fabricated sales deals. Shares of Luckin, which competes in China with Starbucks Corp, sank as much as 81% on Thursday in New York after it said the investigation had found that fabricated sales from the second quarter of 2019 to the fourth were about 2.2 billion yuan ($310 million). "Regarding the suspected financial fraud and the extremely bad impact it has caused, Luckin Coffee hereby sincerely apologizes to the public," the company said in a post on its official Weibo account.

04/04/2020 09:50 AM
'Fast Money' Traders Weigh In On AT&T, Tesla And Twitter

'Fast Money' Traders Weigh In On AT&T, Tesla And TwitterOn CNBC's "Fast Money," Guy Adami said he agrees with Goldman Sachs' upgrade on Twitter Inc (NYSE: TWTR) as the stock should benefit from increased traffic during the crisis. He is concerned about the ad spending, but he thinks that traders who want to play the market can buy some at the current price level.Dan Nathan sees Twitter as a valuable utility for the users, but the company is not growing sales at a rate one might expect for a growth company valued this way. If it drops to high to mid teens, the stock would be amazingly cheap, said Nathan.See Also: Tesla Analysts Dissect 'Surprisingly Strong' Q1 Deliveries DataTim Seymour spoke about AT&T Inc. (NYSE: T). He thinks the stock traded lower Friday as investors listened to the downgrade from MoffettNathanson, which now has a $23 price target for the stock. Seymour explained the company wanted to become more cyclical, but it has done so in the recession and now, investors are concerned about its debt. He has a long position in the name and he added the company now has a lower financing costs.Steve Grasso would be a seller of Tesla Inc (NASDAQ: TSLA) because going forward delivery numbers are going to be disappointed. Nathan is concerned people won't be able to afford Tesla's cars during the recession. He thinks the stock should be trading lower.See more from Benzinga * Cramer Shares His Thoughts On Procter & Gamble, Virgin Galactic And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

04/04/2020 10:23 PM
Trump threatens tariffs on oil imports to 'protect' U.S. energy workers

Trump threatens tariffs on oil imports to 'protect' U.S. energy workersU.S. President Donald Trump said on Saturday he would impose tariffs on crude imports if he has to "protect" U.S. energy workers from the oil price crash that has been exacerbated by a war between Russia and Saudi Arabia over market share. "If I have to do tariffs on oil coming from outside or if I have to do something to protect our ... tens of thousands of energy workers and our great companies that produce all these jobs, I'll do whatever I have to do," Trump told reporters in a briefing about the coronavirus outbreak. Oil prices have dropped by about two-thirds this year as the pandemic crushes demand and as major producers Russia and Saudi Arabia boost output in a war over market share.

04/05/2020 10:10 AM
Coronavirus prompts government to loosen rules on tapping retirement savings. Here's how

Coronavirus prompts government to loosen rules on tapping retirement savings. Here's howThe CARES Act has loosened up the rules for tapping retirement savings like 401(k)s or IRAs. Here's what's changed and what you need to consider.

04/04/2020 02:25 PM
Barron's Picks And Pans: Post-Pandemic Ideas, Safe Dividends And More

Barron's Picks And Pans: Post-Pandemic Ideas, Safe Dividends And MoreThis weekend's Barron's examines the health of both the advertising industry and the internet.Other featured articles offer retail and biotech picks for after the pandemic, as well as relatively safe dividend aristocrats.Also, the prospects for a top telecom, the iPhone maker and more."Google and Facebook Can't Save the Advertising Industry This Time" by Eric J. Savitz points out that the advertising world is in crisis and there won't be an industry bright spot like there was in 2008. See what that could mean for Facebook, Inc. (NASDAQ: FB) and many others.Savitz's "Why You Don't Have to Worry About the Internet's Health" shows why the internet is doing just fine, even though Comcast Corporation (NASDAQ: CMCSA) says video streaming is up 38% and video chats and internet phone calls have soared 212%.In "Retail Winners and Losers for When We Can Spend Again," Jack Hough suggests that now is the time to consider what post-pandemic retail will look like. How might Amazon.com, Inc. (NASDAQ: AMZN), Home Depot Inc (NYSE: HD) and many others fare?Can Johnson & Johnson (NYSE: JNJ) or Procter & Gamble Co (NYSE: PG) weather the coronavirus crisis with payouts intact, if not higher? See Lawrence C. Strauss' "These 8 Aristocrats Have Safe Dividends. (Safe Being a Relative Term Right Now.)" In Lauren R. Rublin's "7 Biotech Stocks to Buy for a Post-Pandemic World," see why the life sciences sector will emerge as a winner from the current crisis and Chinese biotechs look appealing. How about Gilead Sciences, Inc. (NASDAQ: GILD)?See also: Tesla Is Still A 'Maximum Short' For Chanos"The Dividends of Large Banks Look Safe for Now" by Strauss shows why payouts from Bank of America Corp (NYSE: BAC) and Citigroup Inc (NYSE: C) and their peers look safe for a variety of reasons.See how several recession scenarios would affect business at AT&T Inc. (NYSE: T) and its ability to maintain its payout, according to an analyst featured in Nicholas Jasinski's "What Would It Take to Cut AT&T's Dividend?"In "Apple Earnings Estimates Keep Falling. The Debate Is Whether to Buy the Stock," Savitz discusses why Wall Street analysts continue to ratchet down their financial forecasts and target prices for Apple Inc. (NASDAQ: AAPL).Also in this week's Barron's: * Barron's Mutual Fund Quarterly * How New York's war on coronavirus foreshadows what's next for the rest of the country * Whether Wall Street is ready for the new financial crisis * How America's hospital system is about to be tested * Why CEOs are looking beyond shareholders * Whether the bottom for stocks has been seenAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Bulls And Bears Of The Week: Amazon, Boeing, Microsoft, Twitter And More * Barron's Picks And Pans: Tech Picks, SoftBank, REITs, Tesla And More * Notable Insider Buys In The Past Week: GM, Oracle And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

04/04/2020 09:38 AM
Interested In Verizon Communications Inc. (NYSE:VZ)’s Upcoming 1.1% Dividend? You Have 4 Days Left

Interested In Verizon Communications Inc. (NYSE:VZ)’s Upcoming 1.1% Dividend? You Have 4 Days LeftVerizon Communications Inc. (NYSE:VZ) stock is about to trade ex-dividend in 4 days time. You will need to purchase...

04/05/2020 11:42 AM
Coronavirus, Good Friday, oil: What to know in the week ahead

Coronavirus, Good Friday, oil: What to know in the week aheadCoronavirus developments will continue to take centerstage this week for investors.

04/03/2020 08:00 PM
China Is Reopening Its Wet Markets. That's Good

China Is Reopening Its Wet Markets. That's Good(Bloomberg Opinion) -- Here's one more issue to add to the bonfire of tensions with China brought on by the coronavirus pandemic. The country is reportedly reopening its wet markets, the fresh produce stalls associated with Covid-19's early spread in Wuhan.It's understandable that countries now in the grip of the first wave of infection might be outraged. Many blame wet markets for starting the outbreak in the first place. Opening them again, at a moment when thousands are dying overseas, seems emblematic of Beijing's increasingly chauvinistic approach to world affairs.Animals in wet markets are penned and slaughtered or sold live right next to stalls selling fruit and vegetables. Conditions, as my colleague Adam Minter has written, are often less than hygienic.Places where a range of common and exotic animals mix together while bodily fluids flow freely may seem a fertile breeding ground for the virulent novel diseases that cross the species barrier to humans and occasionally become pandemics.At the same time, let’s put the outrage on pause. Wet markets are increasingly losing ground to supermarkets in China. If they're showing resilience as suppliers of fresh goods, it's precisely because consumers regard them as a healthier and more sustainable alternative.That perception isn't inaccurate. The prevalence of food-borne microbial illness in developing East Asia suggests that far from being cesspits of disease, wet markets do a good job of providing households with clean, fresh produce. And while the origins of coronavirus remain obscure, they may have at least as much to do with more worldwide activities such as intensive farming as practices specific to Asia.The attraction of wet markets isn't so different from that of farmers’ markets in Western countries. In contrast to a supermarket model where multiple layers of retailers, wholesalers and logistics companies stand in between the consumer and the grower, wet markets offer a personal and direct connection between shopper, stallholder and farmer.Consumers know the food is fresh because there's generally little refrigeration, so everything must be sold on the day. If in doubt, they can ask the stallholder what's in season and which produce is best at the moment. If they think one market looks unsanitary, they can choose to shop at another.That helps explain how wet markets have managed to hold their own in spite of the growth of store-based retail in recent years. Supermarkets now account for about half of all grocery spending in China, up from about 36% in 1995, according to Euromonitor International. Add in convenience stores and the like and so-called modern grocery has about 68% of China's retail wallet, giving wet markets less than a third.Still, that store-based spending is overwhelmingly concentrated in packaged, rather than fresh produce. Foreign retailers that once hoped to dominate China's staple goods sector such as Carrefour SA and Metro AG have struggled and sold out of local ventures — but wet markets are still going strong.The evidence suggests this consumer loyalty isn’t misplaced. One 2015 study for the World Health Organization compared the number of years of life lost per 100,000 people due to food-borne sickness, disability and death. The region encompassing the wet market zone from China and South Korea down through most of Southeast Asia has the best record for microbial infections outside the Americas, Europe and the rich countries of the Pacific Rim.(1)What about Covid-19 itself, though? There's good evidence that the virus has genetic characteristics from another pathogen found in pangolins, an exotic mammal sometimes sold in Chinese markets. And it circulated extensively around one of Wuhan's seafood and meat markets last December, although the earliest infections don't seem to have been connected to the site.Only a small minority of wet markets sell such exotica, though, so you can close down the wild animal trade without shutting the places where most Chinese people get their daily sustenance. And don't overlook the possibility that a key ingredient in Covid-19's genetic cocktail isn’t wild game, but domesticated livestock. The high-density conditions on farms are far more conducive to cooking up novel diseases, as we've written — and even pangolins are farmed in China these days.To the extent that the mix of the raw and the cooked in Asia's wet markets is a health problem, it can easily be mitigated by better building design (such as separating meat, vegetable and livestock areas and keeping markets fully enclosed), plus the sort of mandated cleaning regulations found in places like Singapore, Hong Kong and South Korea.There's plenty to complain about in the way that China downplayed and hushed up the initial outbreak until it was all but inevitable it would become a worldwide pandemic. Closing all wet markets, though, isn't the solution. (1) Indeed, the data suggest the problem with Asia's appetite for "warm meat" isn't that fresh-slaughtered produce is less healthy than the chilled meat from an abattoir, but that local preferences for undercooked meat and fish lead to unusually high burdens of tapeworms, flukes and other parasitic worms. That's not something different retail formats can solve.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

04/03/2020 01:24 PM
'Companies didn’t create this, they weren’t mismanaged... This was created by a virus:' Rep. Kevin McCarthy

 'Companies didn’t create this, they weren’t mismanaged... This was created by a virus:' Rep. Kevin McCarthy 	Stocks drop drastically after unemployment hits 4.4%. House Minority Leader (R) California Rep. Kevin McCarthy addresses the latest job cuts numbers during the COVID-19 outbreak.

04/05/2020 07:00 AM
Dangerous Disinflationary Shock Slams Reeling World Economy

Dangerous Disinflationary Shock Slams Reeling World Economy(Bloomberg) -- The sinking global economy is suffering through a colossal disinflationary shock that could briefly push it into dangerous deflation territory for the first time in decades.With many national economies all but shutting down in an effort to contain the coronavirus, prices on everything from oil and copper to hotel rooms and restaurant take-out are tumbling.“A powerful disinflationary tide is now rising,” said Joseph Lupton, global economist at JPMorgan Chase & Co.That’s worrying because it could lengthen what may be the deepest recession since the Great Depression. Ebbing pricing power makes it harder for companies that piled on debt in the good times to meet their obligations. This could prompt them to make additional cuts in payrolls and investment or even default on their debts and go bankrupt.While weak or falling prices may seem like an unalloyed good for consumers, a widespread deflationary price decline can be deleterious for the whole economy. Households hold off buying in anticipation of ever lower prices, and companies postpone investments because they see limited profit opportunities.Even after the coronavirus crisis eases, the scars from the shutdown -- elevated unemployment, shattered consumer and company confidence, and staggered returns to work -- may keep price pressures in check, prompting central banks to hold interest rates at rock-bottom levels for a protracted period.“They’re at zero for at least the next two years,” Ethan Harris, head of global economic research for Bank of America Corp., said of the Federal Reserve.Monetary LargessFurther down the road, though, there’s a chance that all the monetary largess -- coupled with a massive outpouring of government debt to pay for measures to fight the virus -- could spawn a build-up in price pressures.“It’s possible that the response to this over the longer term could have an inflationary consequence,” former New York Federal Reserve Bank of New York President Bill Dudley told an April 2 webinar organized by Princeton University. “But in the near term, it’s very definitely on the disinflationary/deflationary side.”Lupton and his fellow JPMorgan economists forecast that their global consumer-price index will temporarily fall below its year-ago level sometime around the middle of 2020, the first time that’s happened in many decades.Much of that is due to plunging oil prices. Even with their rebound last week on reports of potential production cutbacks, they’re still down about 55% since Jan. 1.But other prices are also slipping, including for services. They have long been resistant to the downward tug that prices for internationally traded goods have been subject to, but now service-sector businesses are being slammed by the shutdowns. Lupton sees worldwide core inflation -- excluding food and energy costs -- falling below 1% and says there’s a risk it could stay there.Disinflationary Force“The overwhelming disinflationary force is quite large,” Diane Swonk, chief economist at Grant Thornton in Chicago, told Bloomberg Radio on April 3.While industrial countries -- with the exception of Japan -- avoided falling into deflation in the wake of the 2008-09 financial crisis, they’re entering this one with inflation already at depressed levels.Perhaps the world’s biggest source of deflation right now is China, where producer prices registered a 0.4% decline in February compared with a year ago after rising 0.1% in January. That’s a drag on the price of goods being shipped overseas from the world’s biggest trading nation.But China isn’t the only country in pain.Chain restaurants across Japan have rolled out discount plans for takeout menus, including Yoshinoya Co., which serves bowls of beef on rice and is running a 15%-off campaign.Read more: Deflation a Real Risk for Japan, Former BOJ Economy Chief SaysThe British Retail Consortium reported on April 1 that shop prices fell 0.8% in March, the biggest decline since May 2018, following a 0.6% February drop.And in the U.S., domestic air fares plunged by an average of 14% between March 4 and March 7, according to booking site Hopper.com. Average revenue per hotel room plummeted 80% during the March 22-28 week from year-ago levels, hospitality-data firm STR reported.“In terms of our business, COVID-19 is like nothing we’ve ever seen before,” Marriott International Inc. Chief Executive Officer Arne Sorenson said in March 19 video. “For a company that’s 92 years old, that’s borne witness to the Great Depression, World War II and many other economic and global crises, that’s saying something.”Investors seem to be looking for a long period of very low inflation, according to trading in inflation-protected securities, although some analysts caution the readings may be distorted by a dash for cash.Even before the crisis, monetary-policy makers were worried inflation was too low for the good of their economies. Now they have even more reason for concern.“Deflation cannot be ruled out, but I refuse to make an estimate,” European Central Bank Governing Council member Robert Holzman said. “If deflation is due to a slump in the real economy, it will be difficult to solve this through monetary-policy instruments alone.”Some economists think it’s inflation, not deflation, that’s the problem.“What will then happen as the lock down gets lifted and recovery ensues, following a period of massive fiscal and monetary expansion?” London School of Economics Emeritus Professor Charles Goodhart and Talking Heads Macroeconomics founder Manoj Pradhan wrote for VOX on March 27. “The answer, as in the aftermath of wars, will be a surge in inflation, quite likely more than 5% and even in the order of 10% in 2021.Former chief White House economist Jason Furman said faster inflation should be welcomed, not worried about.“I don’t think we should be afraid of getting inflation,” Furman, who is now a professor at Harvard University, told Bloomberg Radio on April 2. “If we get inflation that would be good. That would be a good sign that we have adequate demand.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

04/03/2020 04:40 PM
4 Top Stock Trades for Monday: AMD, BA, UBER, LVGO

4 Top Stock Trades for Monday: AMD, BA, UBER, LVGOA record jobless claims report on Thursday was followed up with a dismal jobs report on Friday. That said, let's look at a few top stock trades for next week. Top Stock Trades for Monday No. 1: Advanced Micro Devices (AMD) Click to Enlarge Source: Chart courtesy of StockCharts.comAdvanced Micro Devices (NASDAQ:AMD) was trading great on the long side when the market was rebounding higher. In all, AMD stock has actually been trading pretty well amid the novel coronavirus pullback.In late February, AMD stock posted a wicked rebound off the $42 area, but just a few sessions later, it was harshly rejected by the 50-day moving average. The latest rally was cut short by the now-declining 50-day moving average once again. It shows that bulls can't keep momentum on their side.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf the $42 level fails to buoy AMD once again, look for a retest of the $38 area and the 200-day moving average. At least on the first test, I would expect this zone to act as support. If it does, a rebound back to $42 is in play. If it doesn't, though, $34 to $35 could be in play. Top Stock Trades for Monday No. 2: Boeing (BA) Click to Enlarge Source: Chart courtesy of StockCharts.comThe volatility remains high in Boeing (NYSE:BA). Shares broke below $100 in mid-March, then doubled in a rapid rally up past $180. However, the 38.2% retracement from the February high to March low, along with the 20-day moving average acted as resistance.Now shares are clinging to the $120 area. Below that puts $100 back on the table. If $120 holds as support, see if Boeing can rally back up through $140. Over it puts the $160 mark and the 20-day moving average in play.Keep it simple with Boeing stock, and go level to level. Top Stock Trades for Monday No. 3: Uber (UBER) Click to Enlarge Source: Chart courtesy of StockCharts.comLike Boeing, Uber (NYSE:UBER) posted a robust rally off last month's lows.However, after bubbling just below $28, Uber stock could not push through this mark, which now becomes upside resistance.The 20-day moving average failed to buoy the stock, as shares are now retreating. For bulls, they'll want to see this stock hold up over $20, if not purely for psychological reasons. The 23.6% retracement is not the support level I'd go all-in at, but it's the last bit of support between Uber's current stock price and sub-$16.Below $20, and that $16 mark is in play. On a rally, see if Uber can reclaim its 20-day moving average, then retest $28. Top Stock Trades for Monday No. 4: Livongo Click to Enlarge Source: Chart courtesy of StockCharts.comRemember Livongo (NASDAQ:LVGO), a stock we flagged in late March as it had an ascending triangle setup?That's a bullish technical development, where rising uptrend support (blue line) squeezes a share price against a static level of resistance. In this case, resistance came into play near $24.Well, it didn't take long for LVGO stock to burst through this resistance mark, reclaiming its 50-day and 100-day moving averages in the process. With the breakout playing out, what should investors keep an eye on now?Traders may consider booking some or all of their profits in Livongo. After all, this is a tough tape -- especially for swing traders. From here though, keep an eye on $30, which has been resistance for several quarters, and $24, the prior breakout level. The latter should now act as support, provided the bulls can remain in control.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long LVGO. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 4 Top Stock Trades for Monday: AMD, BA, UBER, LVGO appeared first on InvestorPlace.

04/05/2020 09:15 AM
RBC: 3 Outstanding Dividend Stocks Yielding at Least 9%

RBC: 3 Outstanding Dividend Stocks Yielding at Least 9%Canadian investment bank RBC has been taking the temperature of institutional investors, and the results are fascinating – and, perhaps, illuminating. The analysts start by pointing out the obvious, “We view capitulation as a necessary, though not sufficient, condition for stock market bottoms in major drawdowns,” but go on to note that a “surprisingly high level of bullishness supports our own view that we haven’t yet seen investor capitulation.” So, investors are looking to buy – and that sentiment has the potential to turn a mild stock rally into something larger. In a climate of heightened risk, investors should remember an old Wall Street saw: Bulls and bears make money, while the pigs get slaughtered. Money can be made whether markets rise or fall – the key is not to get greedy. Today’s market climate of heightened risk, should naturally draw investors toward dividend stocks. A modest rally in a bear market is a good time to buy in – the bear has pushed prices down, while the rally creates a positive mindset for buying. And dividend stocks offer a steady income stream, should the share price fail to appreciate. Look for stocks with reliable dividend histories and higher than average yields; the rest should fall into place naturally. And now we get to the real meat of RBC’s recent market report. The bank’s analysts have made several concrete recommendations to put the macro report into practical operation. These are stocks with dividend yields over 9%, backing up plenty of share price upside. Let’s open the TipRanks database and look at the details. Schlumberger Limited (SLB) We’ll start in the oil patch, where so much economic energy has its beginnings. Oil field services is a vital niche, as the drilling companies cannot get the crude out of the ground without the support offered by companies like Schlumberger. Its services and products – in the drilling, well completion, and oil production segments of the industry – brought in $33 billion in revenue for 2019. Schlumberger’s Q4 performance was slightly disappointing. EPS, at 39 cents, was down 9% sequentially – but up 8% year-over-year. The quarter saw $8.2 billion in revenue, yielding $1.5 billion in free cash flow. And the Board once again approved the 50-cent quarterly dividend. That dividend has been held steady at 50 cents for the past five years, and the company has a 14-year history of reliably maintaining the payments. The annualized payout, $2, gives an impressive yield of 14%, 7x the average yield among S&P listed companies. With the Fed’s key rate cut to near zero, and Treasury bonds yielding well below 1%, this makes SLB a highly attractive move for return-minded investors. RBC’s Kurt Hallead sums up the case for SLB in a succinct statement: “We would expect some lingering effects during 2020 as governments go into lock down mode… Internationally, the company expects activity to decline with Mid East and Russia relatively resilient… Our price target is supported by the fundamental outlook for its international business and its strong free cash flow generation.” Hallead gives the shares a Buy rating, with a $27 price target that implies a strong upside potential of 89%. (To watch Hallead’s track record, click here) Schlumberger keeps a Moderate Buy rating from the analyst consensus, based on 8 Buys and 6 Holds. Shares are selling for $14.29, and the average price target of $28.63 suggests room for a potential upside of 100% in the coming 12 months. (See Schlumberger stock analysis on TipRanks) Halliburton Company (HAL) Up next is another major name in oilfield services, Halliburton. This giant corporation is one of the largest in its niche, operating in more than 70 countries. Halliburton’s operations are carried out through hundreds of subsidiaries, and overseen by two headquarters, one in Houston and one in Dubai. The company is involved in all aspects of the oilfield industry: drilling, well completion, pipeline services, even construction of refineries and chemical plants. Halliburton brings in over $22 billion in annual revenues. Halliburton reported 32 cents EPS in Q4, down 6% sequentially but more than enough to support the 18-cent quarterly dividend. At 72 cents annualized, the dividend gives a yield of 9.5%; combined with its 14-year history, this makes HAL shares one of the market’s dividend champs. Looking ahead, Wall Street expects HAL to report 25 cents EPS in Q1. While down sequentially, this will be an 8.6% increase year-over-year. And, it will keep the company on track for maintaining its generous dividend policy. RBC’s review of this stock was, like SLB’s, written by Kurt Hallead. He said of Halliburton, “Company leadership is bracing for a sharp downturn with no expectation of a meaningful recovery... Management’s primary focus is to generate sufficient FCF to pay down the $685 million of debt coming due in 2021… The lower oil price environment is likely to lead to delays or cancellations of existing tenders and new projects.” Hallead also notes the company’s “disciplined approach to maximizing profitability, free cash flow and shareholder returns.” In line with his comments, Hallead sets a $12 price target on HAL shares, indicating a 58% upside for the coming year and backing his Buy rating. This stock is another with a Moderate Buy analyst consensus rating, but the split – 4 Buys and 11 Holds – shows that there is some reason for caution here. Shares are selling for just $7.61, and the average price target of $12.29 implies an upside potential of 62%. (See Halliburton stock analysis on TipRanks)Phillips 66 Partners (PSXP)Last on our list is a partnership company, affiliated with the Phillips 66 oil giant. PSXP owns and operates crude oil and natural gas pipelines, terminals, and refining and processing plants. The company boasted record Q4 earnings of $255 million in its last quarterly report. Not only was its fourth quarter a record for earnings, but its full year 2019 report also showed a company record: $923 million, or $1.06 per share. The strong earnings results prompted management to increase the dividend to 87.5 cents quarterly; the new payment went out in mid-February, to shareholders of record as of January 31. PSXP has been raising its dividend steadily, every quarter for the past three years. It’s part of the company’s pattern of raising the payout, which has pushed the payout ratio up to 86%. The $3.50 annualized payment makes the yield 9.1%, a strong boon for investors, especially given the growth history. RBC likes this stock, as shown by 5-star analyst Elvira Scotto’s comments: “Our upside scenario reflects a scenario in which PSXP accelerates organic growth projects at attractive multiples, or completes an accretive dropdown acquisition resulting in additional cash flow growth.” Scotto rates the stock a Buy, and her $43 price target implies a modest upside potential of 13%. (To watch Scotto’s track record, click here) PSXP shares have 5 Buys and 3 Holds, making the analyst consensus rating here a Moderate Buy. The stock is the most expensive on this list, at $38.10 per share, and the $46.86 average price target is indicative of a 23% upside potential for the coming months. (See Phillips 66 Partners stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

04/03/2020 02:05 PM
3 Cannabis Stocks Set to Thrive Through the Global Shutdown

3 Cannabis Stocks Set to Thrive Through the Global ShutdownDespite the economic shutdown in large parts of North America, all of the initial reads on the cannabis sector have surprisingly been positive. Due to the medical cannabis aspects of the sector, most retail stores have been deemed essential allowing for the stores to remain open.Consumers from the U.S. and Canada have flooded retail stores and online websites to buy up cannabis products due to fears of and economic shutdown and potential store closures. Oddly though, the stocks haven’t generally rebounded despite positive sector trends as 2020 starts.Areas from California and Washington saw sales jump approximately double during the period from March 13 to March 17. Average store revenues were up roughly 100% at more than 1,300 stores using cannabis e-commerce platform Jane Technologies. Several other metrics saw massive product demand during mid-March.All of the news isn’t bullish as Massachusetts closed recreational cannabis stores, Nevada stores are seeing declining sales due to a lack of tourists and Canopy Growth closed 23 stores in Canada. In addition, sales are already seeing a return to normal levels as customers pull back from aggressive buying once realizing the stores will remain open even during lockdown.Several cannabis companies have recently reported solid quarterly reports that should only benefit from increased sales during the coronavirus outbreak along with company specific catalysts in 2020.We’ve delved into these three companies with solid earnings and positive outlooks for a strong March quarter and the full-year 2020. Furthermore, we’ve looked at the stocks through the lens of TipRanks' Stock Comparison tool to find out what makes them special. Let’s dive in.Curaleaf (CURLF)The largest under the radar cannabis play remains Curaleaf Holdings. The company reported pro-forma Q4 revenues of over $131.7 million to lead the cannabis space.The amount far tops the C$123.8 million generated by Canopy Growth while Curaleaf is EBITDA positive and produces far better bottom line results than the consistent C$90 million EBITDA losses of Canopy Growth.The amazing part is the tepid reaction to results due to the indication that the recent Select acquisition was underperforming. The company only generated a minimal boost from the Q3 pro-forma revenues of $129.1 million with a suggestion that strong Curaleaf and Grassroots results were offset by Select only producing $5 million in monthly revenues. The brand was generating $35 million in quarterly revenues when the merger was announced and the competitive California space along with the vape health issues really hurt revenues.The stock is only at $3.50 after hitting around $7.50 earlier this year and the company is positioned for a boost in sales from Illinois due to Grassroots and a rebound in Select sales from vapes and expanded distribution. In addition, Curaleaf is seeing a boost from the initial rush of sales due to stay-at-home order for the virus outbreak. The stock only has a $1.7 billion market valuation with sales still on pace to reach $1 billion this year providing a great entry point.Analysts are striking a bullish tone on Curaleaf stock, as well. 6 Buys and 1 Hold assigned in the last three months add up to a Strong Buy analyst consensus. In addition, the $9.68 average price target puts the potential twelve-month gain at over 170%. (See Curaleaf stock analysis on TipRanks)Green Thumb Industries (GTBIF)Green Thumb Industries is a leading player in several states seeing ramping growth due to legalization of recreational cannabis in Illinois and medical cannabis in Pennsylvania. The company reported Q4 revenues of $75.8 million and guided to 20% revenue growth in Q1 as most stores offer medical cannabis are considered essential by states and remain open.While Curaleaf didn’t guide for the quarter, Green Thumb appears more confident the virus outbreak isn’t going to impact sales, especially considering the quarter was nearly over when the company reported Q4 results. Green Thumb generated Q4 adjusted operating EBITDA of $14.4 million in the quarter as the company continues to maintain efficient operations.Similar to other cannabis stocks, Green Thumb is down about 50% from highs just a few months ago. The stock had a 52-week high above $16 and now trades down around $5.5 despite these strong quarterly results.With 215 million shares outstanding as of the start of 2020, Green Thumb has a market cap of $1.2 billion. The company appears set to generate 2020 revenues of $450 million and up to $680 million in 2021. The stock becomes more of a bargain as investors start viewing the 2021 revenues as legitimate with the strong recreational sales in Illinois and the potential growth in other states.Encouragingly for investors, 6 out of 7 analysts have published a "buy" rating on the stock, according to TipRanks. Their $14.63 average price target translates into 158% upside potential from the current share price. (See Green Thumb stock analysis on TipRanks)MediPharm Labs (MEDIF)Another company still in expansion mode is MediPharm Labs. The Canadian cannabis extraction company was built for profitable growth and the company remains on path to expand internationally in 2020 while other Canadian companies reign in global ambitions.For Q4, revenues were up over 200% from last Q4 to C$32.4 million, but revenues did decline from C$43.4 million in the prior quarter. Revenues and profits did take a hit as the Canadian market was oversupplied with wholesale bulk oil, but MediPharm Labs still generated gross profit of C$10.0 million and EBITDA of C$2.7 million.The company completed a year where revenues reached C$129.3 million and adjusted EBITDA was an impressive C$24.7 million. MediPharm Labs is positioned for growth in 2020 as Cannabis 2.0 products rollout in Canada and the company expands internationally having just obtained a GMP certification by the Therapeutic Goods Administration in Australia.The stock is down to near $1 despite these positive results. With a market cap of only $155 million, MediPharm Labs is cheap in comparison to expectations for revenue growing to nearly $120 million or C$170 million this year and up to $170 million in 2021. As more retail stores open in Canada and Cannabis 2.0 product sales expand, the cannabis extraction company will see revenues rebound making the stock a bargain down here near $1.Indeed, the stock boasts a confident Strong Buy consensus from the Street. TipRanks shows that the average analyst price target stands at $4.37, which implies over 300% upside over the next 12 months. (See MediPharm stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

04/03/2020 02:45 PM
Why egg & dairy demand is surging amid coronavirus

Why egg & dairy demand is surging amid coronavirusVital Farms CEO Russell Diez-Canseco joins Yahoo Finance’s Zack Guzman and Heidi Chung to discuss the unprecedented demand the company is experiencing in the the past two weeks amid the coronavirus outbreak.

04/05/2020 03:17 AM
Trump Steps Up Oil Tariff Threat Amid Saudi-Russia Rift

Trump Steps Up Oil Tariff Threat Amid Saudi-Russia Rift(Bloomberg) -- President Donald Trump ramped up threats to use tariffs to protect the U.S. energy industry from a historic glut of oil, as efforts to forge a global deal to cut output appeared to lose momentum.Trump said Saturday at a White House press briefing he’d use tariffs if needed to protect the domestic oil industry, even as he predicted that Saudi Arabia and Russia would come to an agreement to cut output and stem the rout in prices.But such a deal looked a bit further from reach at the weekend after a diplomatic row between Saudi Arabia and Russia. A gathering of OPEC+ members and other producers scheduled for Monday was pushed back, to give more time for negotiations.Saudi Arabia, which launched a price war last month with Russia after OPEC+ talks broke down, has made clear that it won’t cut production unless other producers -- including the U.S. -- also hold back supply. But Trump said on Saturday: “I don’t care about OPEC,” a “cartel” he’s opposed all his life.The prospect of a deal to reduce the massive glut of oil caused by the coronavirus lockdown sent benchmark oil futures to a record gain last week. Oil prices have fallen about 50% this year as the pandemic has knocked out as much as a third of global oil demand. That means producers are going to have to reduce output eventually -- with or without a deal -- as storage both on land and at sea fills up.In the latest maneuver in the price war, Saudi Arabia postponed on Sunday its monthly price-setting event for exported oil. Saudi Aramco’s official selling prices for May could be pushed to Tuesday or Thursday, according to a person familiar with the situation. The OPEC meeting has been tentatively rescheduled for Thursday.The move allows the company to have a better idea of how negotiations are going before setting the prices that are its key weapon in its war with Russia for market share. Last month, it also postponed the event in the midst of wrangling at OPEC+ and responded to the breakdown in those talks with a historic price cut.On the idea of slapping tariffs on foreign oil, the U.S. oil industry is split. Some independent shale producers -- who’ve been hardest hit by the recent market slump -- are in support, while refiners and large integrated companies are typically opposed.The American Petroleum Institute, which helped arrange a meeting with the president on Friday, argues tariffs would inject uncertainty into an already rattled global marketplace.“If I have to do tariffs on oil coming from outside, or if I have to do something to protect thousands and tens of thousands of energy workers, and our great companies that produce all these jobs, I’ll do whatever I have to do,” Trump said Saturday. Low oil prices are “going to hurt a lot of jobs,” he said.That was a change in tone from Friday, when he suggested he wasn’t inclined to target Russia or Saudi Arabia with oil tariffs.Hundreds of thousands of U.S. oil industry jobs are hanging in the balance, with about $15 billion of investments wiped out from the budgets of shale explorers and many of them on the brink of bankruptcy.(Adds Saudi decision to delay pricing event from the sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

04/05/2020 01:00 AM
What I Learned From Trying to Cut My Own Hair

04/05/2020 08:10 AM
Americans buying ‘historic’ amount of computers during coronavirus lockdown

Americans buying ‘historic’ amount of computers during coronavirus lockdownWith more Americans working from home, we're buying a historic amount of computers, webcams, and monitors.

04/04/2020 01:54 PM
Bulls And Bears Of The Week: Amazon, Boeing, Microsoft, Twitter And More

Bulls And Bears Of The Week: Amazon, Boeing, Microsoft, Twitter And MoreBenzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included e-commerce and software giants.Bearish calls included airlines and the leading electric vehicle maker.The main U.S. indexes closed out last week lower again, led by the more than 2% retreat by the Dow Jones industrial, as the effects of the coronavirus pandemic continued to spread. The March jobs report was worse than expected and new jobless claims shattered records again. Crude oil prices hit a multiyear low but tried to recover later in the week. And investors are already bracing for big bank reports to kick off a new earnings season later this month.Benzinga continues to examine the prospects for many of the stocks most popular with investors. The following are some of this past week's most bullish and bearish posts that are worth another look.Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Bulls Priya Nigam's "Amazon Analyst On Positives, Negatives Of Coronavirus Spending: 'A Material Impact'" examines how the e-commerce and cloud businesses at Amazon.com, Inc. (NASDAQ: AMZN) could benefit from recent trends."Analyst Says Microsoft Is Relatively Well-Positioned For A Crisis" by Shanthi Rexaline looks at why Microsoft Corporation (NASDAQ: MSFT) is one of the more resilient stocks in the face of the COVID-19 crisis.In "Huge Boeing Option Trader Makes M Bet On Nearly 50% Upside By September," Wayne Duggan details why one trader has found cause to feel bullish on Boeing Co (NYSE: BA). In "What Doesn't Kill Twitter During This Coronavirus Crisis Just Makes It Stronger, Goldman Says," Elizabeth Balboa shares why the tide could be turning for struggling social media stock Twitter Inc (NYSE: TWTR).For additional bullish calls, also have a look at "7 Safe Dividend Plays For 2020" and "Mario Gabelli Dishes Out Top Picks, Weighs In On Energizer, MSG And More."Bears In Jayson Derrick's "Tesla Is Still A 'Maximum Short' For Chanos," see why a bet against Tesla Inc (NASDAQ: TSLA) remains a favorite position of noted short seller Jim Chanos. Has nothing significant changed at the electric automaker?"Stifel Upgrades, Downgrades Airlines Facing Coronavirus Shock, Says Hawaiian Well-Positioned" by Priya Nigam looks at why a key analyst is bearish on American Airlines Group Inc (NASDAQ: AAL) and others.Wayne Duggan's "7 Media And Entertainment Stocks To Buy, Sell And Hold" includes Las Vegas Sands Corp. (NASDAQ: LVS) as a stock that investors should steer clear of for now. See what's a better bet.eBay Inc (NYSE: EBAY) is not among those benefiting from stay-at-home culture. So says "This Chart Shows E-Commerce Winners, Losers During Coronavirus Pandemic" by Elizabeth Balboa.Be sure to check out "2008 Playbook Suggests Current Period Is Calm Before The Storm For Stocks" and "This Economist Projects 3 Quarters Of GDP Contraction In Coronavirus Recession" for additional bearish calls.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: Tech Picks, SoftBank, REITs, Tesla And More * Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Nike, Target And More * Barron's Picks And Pans: Big Tech Picks, Bank Stocks Large and Small And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

04/03/2020 03:09 PM
Possible Production Cut Could Save Chesapeake Energy

Possible Production Cut Could Save Chesapeake EnergyDonald Trump tweeted on April 2 that Saudi Arabia and Russia were looking to cut daily oil production by 10 million barrels. He later suggested the cut could be as high as 15 million barrels. If this turns out to be accurate, the price of oil will climb dramatically, providing Chesapeake Energy (NYSE:CHK) with a potential lifeline. And boy, could CHK stock use one.Source: Casimiro PT / Shutterstock.com However, before you hop on this unbelievably speculative play, consider the source of the tweet. They don't call Trump the Pinocchio President for nothing. OPEC MeetingAs I write this, OPEC is scheduled to hold a video conference on April 6 that will include oil producers outside the 14-country alliance, most notably, Russia. It's also possible that the U.S., UK, and Canada could be invited to the meeting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result of Trump's tweet and the subsequent OPEC announcement, the price of a barrel of Brent crude has jumped to almost $34 and West Texas Intermediate (WTI) crude is nearing $27 a barrel. * 7 Telecom Stocks That Are Worth a Close Look That's great news if you own CHK stock.In the first three months of 2020, oil prices fell by 65% due to the double whammy of increased oil production by Russia and Saudi Arabia and the demand slump caused by the global coronavirus pandemic and subsequent shutdowns.In my March 25 article about Chesapeake, I mentioned that the cost of a barrel of oil for U.S. producers was between $20.99 (conventional oil) and $23.35 (share oil). By comparison, Saudi Aramco's cost was less than $9.As a result, I argued that in a world full of cheap oil, Chesapeake was going to have significant difficulties selling assets to pay down debt, a necessity if it wants to remain in business.Should OPEC be able to agree on the size of a production cut, not only would Chesapeake be able to profit from the sale of its oil production, but its assets would become far more attractive to potential buyers.So it's not an understatement to say that OPEC's Monday meeting is the company's last and best hope of sticking around into 2021. You can be sure CEO Doug Lawler and the rest of his executive team will be doing their best to find out what was said and decided during the meeting. Should You Buy CHK Stock?I've been skeptical of Chesapeake's chances of survival for some time. In my most recent article, I suggested that unless a miracle happened, Chesapeake's advisers could be meeting with a bankruptcy judge in the not-too-distant future.It appears that the potential cut to oil production could be the miracle CHK shareholders were looking for. That said, by no means does a production cut secure its long-term survival. The company must reduce its level of debt as soon as possible, regardless of the price of oil.InvestorPlace contributor Louis Navellier and the InvestorPlace Research Staff recently highlighted some of the reasons why Chesapeake's stock is ready to be buried. Not surprisingly, they also mentioned debt's a major concern."The only factor that might weigh in Chesapeake's favor is the ultra-low cost of carrying debt nowadays. The Federal Reserve has suppressed borrowing costs to their lowest levels in recent memory. But that, of course, doesn't wipe out Chesapeake's massive debt load. At best, it might delay the company's collapse for a little while," Navellier and company stated April 1.Would I recommend buying CHK stock? Not unless you have a deathwish.That said, positive news from OPEC's meeting should provide Chesapeake with a lifeline. For anyone who's lost big money on its stock, I hope the company doesn't squander this opportunity. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Possible Production Cut Could Save Chesapeake Energy appeared first on InvestorPlace.

04/04/2020 08:27 AM
Why You Might Be Interested In General Dynamics Corporation (NYSE:GD) For Its Upcoming Dividend

Why You Might Be Interested In General Dynamics Corporation (NYSE:GD) For Its Upcoming DividendGeneral Dynamics Corporation (NYSE:GD) stock is about to trade ex-dividend in 3 days time. This means that investors...

04/05/2020 11:57 AM
New York’s Daily Death Toll Falls for First Time: Virus Update

New York’s Daily Death Toll Falls for First Time: Virus Update(Bloomberg) -- New York State’s daily deaths fell for the first time, but Governor Andrew Cuomo said it’s too soon to draw any conclusions. U.S. troops may soon be directed to wear face coverings.The U.K. faces a tighter lockdown if needed to halt the spread after cases rose to more than 47,000 and fatalities approached 5,000. Spain’s deaths from the virus fell for a third day on Sunday.Denmark may start easing some restrictions. Jakarta commuters were ordered to wear masks.Key Developments:Global cases pass 1.2 million; deaths top 66,000: Johns HopkinsU.S. cases exceed 312,000, a quarter of the world totalU.K. to tighten lockdown if neededBiden suggests virtual conventionIndia bans exports of “game changer” virus drugReligious gatherings move onlineThe fast spread pits treating patients against finding a cureN.Y. Deaths, Hospitalizations Fall (11:30 a.m. NY)New York reported 594 new coronavirus deaths on Sunday, fewer than the 630 it reported on Saturday, Governor Andrew Cuomo said at his daily press briefing. The state has 4,159 fatalities so far.There are 122,031 positive cases in total. New hospitalizations also dropped, to 574 from 1,095, Cuomo reported.The governor said while the coronavirus has hurt the economy, it led to a drop in the crime rate and fewer trauma cases unrelated to the outbreak being taken to hospitals.BOE Rules Out Monetary Financing of Fallout (11:20 a.m. NY)Bank of England Governor Andrew Bailey rejected the idea of using monetary financing to help contain the economic impact of outbreak, and said the bank’s current policies stop short of such action.The central bank has boosted its own bond-buying plan by 200 billion pounds ($246 billion). That’s prompted some commentators to warn that it leaves the bank at risk of directly funding government spending, and potentially unleashing a wave of runaway inflation.“Using monetary financing would damage credibility on controlling inflation by eroding operational independence,” Bailey said in an op-ed in the Financial Times. “It would also ultimately result in an unsustainable central bank balance sheet and is incompatible with the pursuit of an inflation target by an independent central bank.”Biden Suggests Virtual Convention (10:15 a.m. NY)Democratic presidential candidate Joe Biden said the party should consider a virtual nominating convention this summer because the coronavirus has led to limits on public gatherings.“We’re going to have to do a convention, we may have to do a virtual convention,” Biden said on ABC’s “This Week.” “We should be thinking about that right now. The idea of holding a convention is going to be necessary. But we may not be able to put 10, 20, 30,000 people in one place.”Pentagon to Issue Mask Guidance (9:49 a.m. NY)U.S. Defense Secretary Mark Esper said the Pentagon will issue guidance Sunday on personnel wearing face coverings, after U.S. health officials recommended the step for Americans.“We’re going to move toward face coverings,” Esper said on ABC’s “This Week” broadcast. “We want to take every measure to protect our troops.”U.K. Coronavirus Cases Rise (9:25 a.m. NY)Cases rose to 47,806 from 41,903 on Saturday. Total deaths were 4,934 versus 4,313, according to the Department of Health and Social Care, rising at a slower pace than those reported on Saturday.The U.K. will tighten a nationwide lockdown if needed to halt the spread, Health Secretary Matt Hancock said, even as pressure builds on the government to explain how it will eventually ease economically devastating measures.As many as 4,000 low-risk prisoners will be freed in England and Wales as cases inside prisons climb. Selected inmates with less than two months to serve will be released and monitored with electronic devices, the Ministry of Justice said.Denmark May Ease Restrictions (7:56 a.m. NY)Denmark may announce a loosening of restrictive measures aimed at curbing the outbreak as soon as Monday, local media reported.Prime Minister Mette Frederiksen is seeking to present some watering down of the measures at a press conference in coming days, Berlingske and TV2 reported, without saying where they got the information. The country’s confirmed cases of the virus rose to 4,369 on Sunday, with 179 deaths.Scottish Official Warned About Trip (7:30 a.m.)Police in Scotland have visited the country’s chief medical officer after photos were published of her and her family traveling to their second home. Legal instructions about not leaving your home without a reasonable excuse apply to everyone, Police Scotland said in a statement.Catherine Calderwood accepted a warning about her actions, the chief constable said. Earlier, she apologized on Twitter, saying she didn’t have legitimate reasons to be out of the house and didn’t follow the advice she is giving others.Jakarta Commuters Must Wear Masks (7:28 a.m. NY)Commuters in the Indonesian capital will be barred from using public transit if they aren’t wearing face masks. The country has more than 2,000 cases of Covid-19 and Jakarta is among the world’s most-densely populated cities, with more than 10 million residents.Abu Dhabi Waives Charges for NHS (7:20 a.m. NY)Abu Dhabi’s state-owned exhibitions company is waiving charges for Britain’s health service to use its giant London conference center as an emergency hospital, following a similar move by Blackstone Group Co.Abu Dhabi National Exhibitions Co. PJSC had initially been asking as much as 3 million pounds ($3.68 million) per month for the site near London’s Canary Wharf financial district, the Sunday Times reported earlier. The center has been turned into a 4,000-bed field hospital for virus cases, making it one of the largest in the world.Singapore Reports Most Cases in a Day (7:17 a.m. NY)Singapore had 120 new cases, the most in a day, bringing the total to 1,309. Of the new cases, only four involved patients with recent travel history, officials said at a briefing.Two complexes for foreign workers have been declared “isolation areas” and any individuals residing there will have to stay in their rooms for 14 days to avoid the spread of the virus, said Manpower Minister Josephine Teo. The buildings house almost 20,000 people.Europe Needs Marshall Plan (7:09 a.m. NY)“Massive investments, a Marshall Plan for Europe” is needed to emerge from the virus crisis, EU Commission President Ursula von der Leyen said in a column published by Welt am Sonntag. “At the center there should be a strong new EU budget,” accepted by all member states to ensure solidarity and modernization, she said. Funds must be allocated “particularly smart and in a sustainable way.”Budapest Sees More Cases if Rules Broken (6:30 a.m. NY)Budapest may see coronavirus cases surge if lockdown rules continue to be broken, Hungary’s chief medical officer said.The number of infections climbed to 733, with 34 people dead. The figure of 313 registered infections in Budapest could rise fast, Chief Medical Official Cecilia Muller said. Police said some are losing patience with the restrictions, gathering in parks and using the almost empty streets for illegal drag racing.Spain Deaths Slow for Third Day (5:35 p.m. HK)Spain saw a decline in the number of new deaths from the coronavirus for the third consecutive day, raising hopes that the worst of the country’s outbreak may be over.The Health Ministry reported 674 fatalities in the past 24 hours, bringing the total to 12,418. The number of confirmed cases rose to 130,759, from 124,736 a day earlier. The latest daily death toll is now lower than in the U.K., which reported 708 fatalities on Saturday.Starmer to Work With Johnson on Virus (5:30 p.m. HK)The new leader of the U.K. Labour Party, Keir Starmer, said he’ll work “constructively” with Prime Minister Boris Johnson on tackling the Covid-19 outbreak, but wouldn’t be drawn on whether he’d consider joining a potential government of national unity.“I’m not going to score party political points and I won’t demand the impossible,” Starmer told the BBC. He said mistakes have been made in the U.K.’s response to the outbreak but said it’s important to look forward and urged the government to publish its strategy for ultimately ending the lockdown.U.K. Adviser Sees Peak in 7-10 Days (4:50 p.m. HK)Imperial College London Professor Neil Ferguson, who advises the government on its response to the pandemic, told the BBC he sees the outbreak in the U.K. peaking in the next 7-10 days. Asked about a potential strategy for ending the nationwide lockdown, he predicted a series of measures including ramping up testing and immunity certificates. Ferguson predicting the death toll in the U.K. would be in the range of 7,000 to just over 20,000. It’s 4,313 as of Saturday.On the same show, Health Secretary Matt Hancock said the U.K. needs 18,000 ventilators, as many as twice the current supply. It will have a further 1,500 by the end of the week, he said. U.K. Prime Minister Boris Johnson is in good spirits as he works from his Downing Street office after testing positive for Covid-19 more than a week ago.Iran to Ease Some Restrictions (4:18 p.m. HK)Iran will ease some social-distancing measures from April 11 and allow “low-risk” business activity to resume, President Hassan Rouhanisaid, even as the country continues to report a rise in coronavirus cases.Tehran province, the epicenter of the outbreak in Iran, will be excluded from a plan that involves allowing two-thirds of government employees to return to work, Rouhani said in a coronavirus task-force meeting shown on state TV. Holy shrines, schools and universities will remain closed.Iran’s fatalities from coronavirus rose to 3,603 after 151 deaths and 2,483 new cases in the past 24 hours. Total infections reached 58,226.France Ready to Take on Debt (3:45 p.m. HK)France will beef up measures to help the economy as much as needed and is ready to take on debt to avoid a collapse, Finance Minister Bruno Le Maire said in an interview with Le Journal du Dimanche newspaper.“We will provide the necessary financial means as long as the crisis lasts,” he said. “But rebuilding will be long, difficult and costly.”Le Maire said that more than 100,000 companies have already made requests for state-backed loans worth a total of 20 billion euros ($21.6 billion) to help weather the crisis.India Bans Exports of Malaria Drug (3:42 p.m. HK)India banned exports of hydroxychloroquine, a malaria drug that U.S. President Donald Trump has touted as a “game changer” in the fight against Covid-19.Exports of the drug and its formulations have been prohibited “without any exceptions” and with immediate effect, India’s Directorate General of Foreign Trade said in an April 4 order on its website. The trade regulator last month restricted overseas shipments of the drug, allowing only limited exceptions such as on humanitarian grounds and to meet prior commitments.More Than 130 New Cases in Tokyo (2:40 p.m. HK)The city found more than 130 new coronavirus infections Sunday -- a record for daily confirmed cases -- local outlet Kyodo reported, citing unnamed sources close to the Tokyo Metropolitan Government.The city found more than 110 new coronavirus cases Saturday, the first time its daily confirmed infections passed the 100 mark, national broadcaster NHK reported.Singapore Will Announce Additional Support (2:27 p.m. HK)The city-state is set to unveil further support for businesses and households on Monday, following a previously announced S$48 billion ($33.4 billion) stimulus package to buffer the virus’s impact. Authorities plan to waive foreign worker levies for April and boost an existing jobs support program, Deputy Prime Minister Heng Swee Keat said Saturday. He didn’t elaborate on other measures or how much authorities will spend.Bangladesh Announces Stimulus Amid Virus (1:30 p.m. HK)Bangladesh Prime Minister Sheikh Hasina rolled out a 727.5 billion taka ($8.6 billion) stimulus package, which is 2.52% of the country’s GDP, to cushion the impact of the outbreak.Low-income groups will be affected the most by the outbreak as economic costs will mount in the days to come, she said. Bangladesh has 70 cases, with nine reported Saturday.Malaysia Asks Courts to Stop Jailing Lockdown Dodgers (1:17 p.m. HK)Malaysia’s prisons department sent a letter to the federal court asking the judiciary to stop jailing violators of the country’s movement control order, the Star newspaper reported. The prisons department director-general is said to have signed a letter that states social distancing was impossible in prisons due to overcrowding, according to the report.Prison chiefs worry that incoming inmates could become sources of infections as their health status is unknown.Trump, India’s Modi Discuss Virus, Supply Chains (10:37 a.m. HK)Trump and Indian Prime Minister Narendra Modi held a phone call in which they “agreed to remain in touch on the issue of global supply chains for critical pharmaceuticals and medical supplies and to ensure they continue to function as smoothly as possible during the global health crisis,” White House spokesman Judd Deere said in a readout.China Adds 30 New Confirmed Virus Cases (8:19 a.m. HK)China reported that it had 30 new infections April 4, including 25 imported cases. It also said there had been three more deaths. China also reported 47 new asymptomatic cases for April 4, including 16 cases from abroad.Pelosi Aims to Bring Up Next Virus Stimulus This Month (8:10 a.m. HK)Communities in the U.S. “cannot afford to wait” for the next coronavirus stimulus, Speaker Nancy Pelosi said in a letter to House lawmakers, adding “it is my hope that we will craft this legislation and bring it to the floor later this month.”The next package “must go further in assisting small businesses including farmers, extending and strengthening unemployment benefits and giving families additional direct payments,” according to Pelosi. She said it would give more resources to state and local governments, health care including hospitals and medical workers, and first responders.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

04/04/2020 10:22 PM
United slashes New York-area flights due to coronavirus

United slashes New York-area flights due to coronavirusUnited said starting Sunday it will go from 157 daily flights total at Newark and New York LaGuardia to just 17. Newark, the airline's hub in the New York area, will drop from 139 daily flights to 62 destinations to 15 flights a day to nine destinations, while LaGuardia will go from 18 to 2 flights a day.

04/03/2020 06:02 PM
Disney, Caesars, & Hilton to furlough workers amid coronavirus

Disney, Caesars, & Hilton to furlough workers amid coronavirusYahoo Finance's Sibile Marcellus joins Seana Smith to break down the latest companies furloughing some of their employees as coronavirus cases spike in the U.S.

04/04/2020 03:44 PM
Notable Insider Buys In The Past Week: Carvana, MGM And More

Notable Insider Buys In The Past Week: Carvana, MGM And MoreInsider buying can be an encouraging signal for potential investors.A number of insiders made return trips to the buy windows last week.Resort and railroad operators were among those seeing insider buying.Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason -- they believe the stock price will rise and they want to profit. So insider buying can be an encouraging signal for potential investors, particularly during periods of uncertainty.Insiders continued to take advantage of fallen share prices last week. The following are some of the most noteworthy insider purchases reported in the past week.A pair of beneficial owners took advantage of a direct offering to add a total of 955,500 or so Carvana Co (NASDAQ: CVNA) shares. At $45 per share, that cost them around $43 million. The used car company said it raised money for a restructuring effort.MGM Resorts International (NYSE: MGM) saw President William Hornbuckle and other insiders pick up almost 2.2 million shares for $10.60 to $12.35 each. That totaled over $25.51 million. Hornbuckle's stake is up to over 148,700 shares.Virginia-based tech company Appian Corp (NASDAQ: AAPN) saw a beneficial owner return to the buy window. At prices ranging from $35 to $42 for 384,400 or so shares, the latest purchases added up to more than $14.75 million.A director sold 8,000 shares last week too.A director at SYNNEX Corporation (NYSE: SNX) bought 52,000 shares of this IT services company, and a 10% owner also added 50,000 shares. At $73.10 to $74.47 per share, that came to more than $7.57 million altogether. Note that the chief financial officer sold less than 300 shares as well.A director of HD Supply Holdings Inc (NASDAQ: HDS) indirectly purchased over 308,700 shares of this Atlanta-based industrial distributor at between $25.76 and $26.98 each. That totaled nearly $7.02 million. That director also bought more than 314,000 shares last month.A Union Pacific Corporation (NYSE: UNP) director shelled out $138.20 each for 15,000 shares of this Omaha-based railroad operator. That cost him more than $2.07 million and was pursuant to a Rule 10b5-1 trading plan.Opko Health Inc. (NASDAQ: OPK) CEO Phillip Frost, a frequent buyer, indirectly purchased almost 1.13 million shares of this biotech at $1.14 to $1.35 each. That totaled more than $1.59 million. Frost also added 300,000 shares the prior week.An executive acquired almost 9,800 Baxter International Inc (NYSE: BAX) shares last week, and a pair of directors sold some shares of this health care company. That buyer paid $82.09 to $82.25 per share, which cost him more than $803,800.An Energy Transfer LP (NYSE: ET) director acquired some shares of this master limited partnership recently. At about $4.88 each, the 120,000 shares added up to more than $586,900. A number of insiders were buyers throughout March.See also: Bulls And Bears Of The Week: Amazon, Boeing, Microsoft, Twitter And MoreIn addition, note that there was some recent insider buying at Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) and Schlumberger Limited. (NYSE: SLB).At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: Post-Pandemic Ideas, Safe Dividends And More * Barron's Picks And Pans: Tech Picks, SoftBank, REITs, Tesla And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

04/03/2020 05:09 PM
Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And More

Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And MoreOn CNBC's "The Exchange," Jamie Cox of Harris Financial Group and Charles Bobrinskoy of Ariel Investment spoke about stocks they like in the current market environment.Cox said he keeps asking himself when is he going to buy an integrated oil company, if not when there is an oil price war going, combined with a 30% or more demand destruction. He thinks now might be the right time to start buying a little bit of Exxon Mobil Corporation (NYSE: XOM) or Royal Dutch Shell plc ADR Class A (NYSE: RDS-A) and initiate a position in companies that are well capitalized and have plenty of interest coverage.PreMarket Prep Stock Of The Day: Exxon MobilProcter & Gamble Co (NYSE: PG) is a better company to own and you can pick it up on discount relative to Clorox Co (NYSE: CLX), said Cox. He explained that these stocks pay a similar dividend, but Procter & Gamble has much better interest coverage ratio.Bobrinskoy likes Zimmer Biomet Holdings Inc (NYSE: ZBH). He's trying to find companies that are going to be fine because they're going to have pent up demand. People are currently not doing hip replacement surgeries or knee surgeries so its business is going to be down. Those surgeries aren't canceled, they're just postponed so Zimmer is very well positioned in the long term, said Bobrinskoy.See more from Benzinga * Cramer Shares His Thoughts On Procter & Gamble, Virgin Galactic And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

04/03/2020 03:09 PM
Blue Apron Stock Will Eventually See Red

Blue Apron Stock Will Eventually See RedPersonally, I view Blue Apron (NYSE:APRN) as an example of getting the logic right and the results wrong. In August of 2019, I worried that a recession might hurt shares of the meal-delivery service. I came to that conclusion because at the time, the U.S.-China trade war suggested a slowdown for both economies. Further, the Federal Reserve appeared ineffective in mitigating the situation. Therefore, Blue Apron stock appeared too risky.Source: Roman Tiraspolsky / Shutterstock.com Up until mid-March of this year, I was proven correct. However, everything changed on the March 16 session as shares exploded higher. As InvestorPlace web editor Nick Clarkson explained, the dramatic spread of the coronavirus from China drove sentiment toward Blue Apron stock. With social distancing becoming the new normal, any effort to bring necessary items by mail was a viable opportunity.A few days later from that pivotal session, California issued a mandatory stay-at-home order. In an unprecedented move, California Governor Gavin Newsom basically took matters into his own hands. At the time, federal leadership appeared confused at best. With this decision, Newsom may have prevented California from going over the edge.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt time of writing, California has just under 10,000 coronavirus cases, while hard-hit New York has nearly 84,000. Indeed, history may look favorably on the governor. * 7 Telecom Stocks That Are Worth a Close Look However, this mandatory order didn't come without consequences. With all non-essential businesses temporarily closed, the true economic impact may be utterly devastating. However, as Clarkson argued, this is the opening that Blue Apron stock needed.People sheltered in place represents a hostage audience. Further, because venturing outside risks exposure to the virus, APRN's meal delivery service appears the perfect solution. But looks can be deceiving. Blue Apron Stock Is a Classic Bull TrapBefore I get into why I'm negative on Blue Apron stock, I acknowledge the tempting bull case. Aside from exposure risk, Covid-19 has sparked mass panic. Right now, people are not acting rationally. Furthermore, with record job losses over the horizon, this will add to the collective strain.What I'm getting at is that already violent Americans will become even more violent. Frankly, it's no coincidence that firearms manufacturers Sturm Ruger (NYSE:RGR) and American Outdoor Brands (NASDAQ:AOBC) have recently enjoyed positive momentum.Unlike guns, though, the sudden catalyst for Blue Apron stock - i.e. the coronavirus - will eventually disappear. Based on some of the latest reports, the outbreak here could affect us for four months or longer. But like any health crisis, the virus will pass.When it does, what are you left with? Prior to the mandatory shutdowns, APRN was a wildly risky organization. A few months of sales surges can't undo years of declining revenue and consistently negative net income.More importantly, I don't see Blue Apron having consecutive months of meaningful sales increases. Primarily, APRN is a pure bull market stock. Simply put, the company's products are too expensive.From their website, a two-serving vegetarian meal package costs just under $60 a week. If you were to buy it for the full year, we're talking $3,120. Contextually, it's not bad if we were living in a bull market. However, only a brave soul would deny that we're careening toward a recession. In this scenario, that $60 a week can be put to far better use.And consider Kroger (NYSE:KR), which is heavily marketing its delivery and online order pick-up services. When funds are tight, your money will go much further at Kroger and they offer similar conveniences. No Room for Luxuries in a RecessionAnother problem that I have with Blue Apron stock is that the underlying business is almost a pure luxury play. Bluntly, this is a service for people with vast amounts of disposable income. And that's why your typical Blue Apron customer is older.Let's just look at the situation here. The appeal for this company comes from the concept that you can quickly prepare healthy gourmet meals at home. However, the packaged meals still require some minimal preparation for best results, which somewhat defeats the purpose of having someone else cook your food for you.To be fair, you're getting amazing food for a minimal time investment. That alone and without any other context may appeal to millennial foodies. But as I mentioned above, the cost is prohibitive, especially in this compromised economic environment. Furthermore, what do people have plenty of right now? Time.Thus, the bear case comes down to a very rational, logical deduction: a poor economy plus deflated personal funds but time to spare incentivizes traditional grocery shopping. In turn, Blue Apron can only market its products to very financially secure families. And right now, that demographic is steadily declining.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Blue Apron Stock Will Eventually See Red appeared first on InvestorPlace.

04/03/2020 12:57 PM
Hilton Stock Will Rally Once This Crisis Passes

Hilton Stock Will Rally Once This Crisis PassesShares of some of the world's best companies have been cut down amid the current crisis. Hilton Worldwide (NYSE:HLT) is no exception. Hilton stock has dropped a stunning 46% from its peak.Source: josefkubes / Shutterstock.com The fall is a classic case of the market weighing short-term fears too heavily. Of course Hilton is going to take a hit from the response to the coronavirus pandemic. But, again, its share price has been cut almost in half.That type of decline isn't justified by demand that is reduced for a few months. In fact, it's not even justified by an impact that lasts a few years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe impact won't last a few years. This crisis will pass. The economy will recover. We will make it through. On the other side, consumers will want to travel and likely want to do so soon. (I'm surely not the only one with a strong case of 'cabin fever' at the moment.) * 7 Telecom Stocks That Are Worth a Close Look I'm not dismissing the very real human toll the coronavirus is taking. But the U.S. economy, and U.S. stocks, will come back stronger than ever. In the meantime, investors have the opportunity to own some of the world's best businesses at a steep discount to fair value.Hilton is one of those businesses. Hilton stock is one of those names priced at a discount. Don't PanicIt's understandable why investors have sold Hilton stock. Panic still grips this market, even with a recent bounce. The volatility index, often referred to as the VIX, still sits above 50 -- a hugely elevated level.And like other hotels, Hilton is seeing a significant short-term reduction in demand. One industry analyst estimated that RevPAR (revenue per available room) was down a stunning 80% last week.There are mid-term worries as well. Some investors clearly are worried that a recession will follow even once the coronavirus is under control. And Hilton unsurprisingly struggled during the financial crisis.According to the prospectus filed at the time of its 2013 initial public offering, revenue declined almost 15% in 2009. Excluding non-cash impairments, operating profit fell by almost half.Hilton is going to take a hit. But that's true of most companies in the short term. There are exceptions like Zoom Video Technologies (NASDAQ:ZM), or a biotech like Moderna (NASDAQ:MRNA) that is working on a coronavirus vaccine. A travel-based company like Hilton, however, simply is going to have to make it through to the other side. Look at HistoryAnd Hilton will make it through to the other side. Bear in mind that the company is a franchisor, which significantly minimizes its exposure to hotel-level operating losses during this pandemic.Hilton did close 2019 with almost $8 billion in debt. But with a market capitalization still over $18 billion and the power of the Hilton brand, those liabilities are manageable.Meanwhile, travel will bounce back. And corporate travel should do so first. That's Hilton's sweet spot.We've seen what happens with hotel stocks in a recovery. Hilton was private during the financial crisis: Blackstone Group (NYSE:BX) led a leveraged buyout in 2007. But peers were among the best stocks to buy at -- or even before -- the March 2009 bottom.Marriott (NASDAQ:MAR) more than tripled in 20 months. Hyatt (NYSE:H) executed an IPO in late 2009 and the stock almost doubled in 15 months. The Case for Hilton StockI'm not guaranteeing that Hilton stock will see similar returns. But in a recovery, hotel stocks do well. And Hilton stock may well be the best hotel stock out there.Certainly, in this volatile market, position sizing matters. Investors need to do their due diligence. And it's possible HLT sees further declines.But, as is always the case, investors need to take the long view. This is one of the world's great companies. Its stock price is down by almost half.At some point, one of those two things will change. It won't be the quality of Hilton's business.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Hilton Stock Will Rally Once This Crisis Passes appeared first on InvestorPlace.

04/03/2020 07:53 PM
Some WeWork Staff Planned Their Lives Around a Stock Deal That Just Collapsed

Some WeWork Staff Planned Their Lives Around a Stock Deal That Just Collapsed(Bloomberg) -- Teddy Kramer worked at WeWork from 2013 to 2015. When he left the company, he had been a director of new market development, helping the co-working startup open new offices in different regions. He’d put in the time and been granted shares in the company. At first, he thought he might be able to sell them after WeWork’s much-anticipated initial public offering in September, but the IPO attempt flopped.As a backup option, Kramer and other current and ex-WeWork staff were told they would be able to sell their shares to SoftBank Group Corp. in a deal set to take place on Wednesday. Kramer was expecting to sell between $50,000 and $100,000, he said, and he was depending on the cash to cover expenses while he started his new business, a co-working space in San Francisco called Neon. On Thursday, though, SoftBank sent a letter to all WeWork shareholders: The deal was off. The Japanese conglomerate, the largest investor in WeWork parent We Co., was pulling out of the agreement to purchase billions in WeWork stock from existing shareholders. The abrupt about-face has impacted many people like Kramer—rank-and-file employees who had been banking on the payout from SoftBank, some of whom are now left in a lurch as the coronavirus pandemic slams the global economy. They’d already faced the disappointment of losing the chance to sell after the promised IPO and seeing their highly valued WeWork shares lose almost all their worth in the fallout. SoftBank’s decision to pull out underlines the precarious nature of owning shares in a startup, even when the company was, at one point, the most valuable startup in the U.S.Less than a year ago, WeWork was on pace for an IPO that would add to the rolls of tech millionaires. New York was bracing for an infusion of wealth akin to the bonanza that beset Silicon Valley overnight when Facebook Inc. went public in 2012. An IPO or multibillion-dollar stock transaction like the one SoftBank agreed to with WeWork provides the seed money for people to buy homes and start businesses. For WeWork, those opportunities evaporated with little forewarning, coming as a shock to some shareholders who had already begun laying the foundation for their new lives. SoftBank cited several reasons for pulling out of the deal, including that WeWork was currently facing government inquiries from U.S. attorneys, the Securities and Exchange Commission, attorneys general in California and New York and the Manhattan district attorney. Those ongoing inquiries, the company said, meant that the conditions of the original deal had not been met. Representatives for SoftBank and WeWork declined to comment.  In the letter sent early Thursday confirming the deal was off, SoftBank framed the called-off stock sale as something that would have mainly benefited WeWork’s ousted chief executive officer, Adam Neumann, and WeWork’s investors. The bulk of the proceeds of the $3 billion stock sale was set to go to just five investors, including Neumann and venture capital firm Benchmark. "Adam Neumann, his family, and certain large institutional stockholders, such as Benchmark Capital, were the parties who stood to benefit most from the tender offer," SoftBank said in a statement about the decision. "Together, Mr. Neumann’s and Benchmark’s equity constitute more than half of the stock tendered in the offering. In contrast, current WeWork employees tendered less than 10% of the total."But for employees, a tenth of $3 billion is still a lot of money. Add in additional workers who have recently left the company, and that figure could climb even higher. Some current and former staff at WeWork have taken issue with SoftBank’s statements about its decision to pull out, arguing that the money they stood to receive from the sale would make more of a difference in their lives than to Neumann and others.“They’re trying to leverage the negative press that has followed Adam since the IPO by saying ‘This is just a billionaire making more money,’” Kramer said.Kramer, 36, said he’s fairly lucky. He hadn’t signed a lease yet for his new company, and doesn’t have employees that he would have to cut. But without the money from the stock sale, his business dream is on indefinite hold. In the meantime, he’s tutoring kids in reading comprehension over Zoom and looking for a different job.Other people were depending on the SoftBank sale to help defray costs they’d incurred when WeWork’s stock seemed much more valuable. One current WeWork employee, who also asked not to be named because of a non-disclosure agreement, said they bought a house last summer thinking they'd be able to pay for it after selling shares in the IPO. When that didn't happen, they had still been hoping cash from this stock sale could help offset some of those costs.A former employee, who asked not to be named because they signed a non-disclosure agreement, said that once the company’s IPO prospectus was made public in August, they figured that meant the IPO was likely to take place. Right after that, this person took out a loan in order to buy the shares they had access to. The idea was to buy early to try to avoid short-term capital gains tax.Over the next month, though, as WeWork’s bankers struggled to get institutional investors to commit to buying into WeWork’s IPO, the company’s prospects started to look shakier. The former employee said that WeWork’s then chief financial officer, Artie Minson, repeatedly tried to reassure workers at all-hands meetings. Minson told them the company had strong revenue, that its numbers had never been better, and that the company would go public by the end of the year.But quickly, WeWork withdrew its IPO and turned to SoftBank for bailout funding to avoid going bankrupt. Employees were offered the chance to reprice their shares at around $4 each. The former employee, though, still had a tax bill based on the value of the shares at their time of purchase, around $50 apiece. That left this person with a six-figure tax bill—and no way to sell the shares in order to pay it off. The former employee had been hoping that they’d be able to sell enough shares to SoftBank this week to pay off the loan taken out to buy the shares in the first place—not the profit this person had envisioned, but just enough to break even.Some employees might be able to find some relief, said Deep Gujral, a principal who works with venture-backed companies at the professional services firm Withum. Gujral recommended trying to negotiate with creditors: "Given the current climate, and Covid-19, they might be more receptive" to relaxing payment requirements, he said. "If you have a mortgage, and you go to the lender, they might be flexible." Gujral also expects to see class-action lawsuits that include current and former WeWork employees as a result of the withdrawn tender offer. After energy-services company Enron filed for bankruptcy in 2001, employees were able to use federal laws around benefit plans and stock to their advantage in court, and the same could apply here, he said.But hypothetical lawsuits are of little comfort to most WeWork shareholders. “The rest of the world needs to know that there are 500 to 1,000 early employees who are paying the price for this,” Kramer said. “All we ever did was work hard and make this company an $8 billion company. This was our moment. SoftBank came in and made a deal: ‘We're going to take care of you.’ And now all of a sudden it's, ‘Eh, we're not doing that.’”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

04/04/2020 10:28 AM
Economist: ‘Depression-magnitude’ job losses coming

Economist: ‘Depression-magnitude’ job losses comingThe coronavirus outbreak, or COVID-19, is pushing the U.S. economy further into historic territory.

04/03/2020 01:12 PM
After $50 Billion of Losses, No One Comes to Save the Mortgage Market

After $50 Billion of Losses, No One Comes to Save the Mortgage Market(Bloomberg) -- The market for mortgage-backed securities was in free fall, with fear running rampant and banks seizing collateral.So Tom Barrack, the chairman of real estate investment trust Colony Capital Inc., published an 1,800-word plea for the Federal Reserve to buy bonds backed by homes, cars and other assets and for banks to halt margin calls.That was last Saturday. In the week since, three top investors in the sector have engaged restructuring advisers, two others sold $7 billion of debt at a discount and publicly traded mortgage REITs in the U.S. lost more than $12 billion of market value, bringing total declines this year to at least $50 billion.The carnage shows no signs of abating. Prominent asset managers including Blackstone Group Inc., TPG and Apollo Global Management Inc. have been sucked into the vortex wrought by the coronavirus pandemic, with their associated mortgage REITs losing more than two-thirds of their value on average so far in 2020.The pandemic has crippled commerce across the U.S., putting almost 10 million people out of work in a matter of weeks and sparking fears that huge numbers of businesses and individuals will fail to make rent and mortgage payments. As a result, investors are fleeing from residential and commercial debt that isn’t backstopped by the federal government.Read more: Nobody knows what will happen when the rent comes due on April 1“Nobody wants to buy those securities when the underlying contracts are not performing,” especially when it remains unclear how long the disruption will last, Barrack wrote in his post on Medium.Nobody, that is, except perhaps Starwood Capital Group’s Barry Sternlicht, JPMorgan Chase & Co. and others looking for deals as billions of dollars of debt hit the block.Sternlicht, who manages $60 billion, said in a letter to shareholders last week that his firm is looking to “take advantage of market dislocations” even as shares of his publicly traded REIT have tumbled 61% this year through Thursday.TCW, an asset manager overseeing about $217 billion, is buying selectively. So are family offices, according to people familiar with the transactions. And JPMorgan, the biggest U.S. bank, said Monday it was raising as much as $10 billion to invest in dislocated markets, including credit and real estate.“For buyers in this market, it’s about willingness and ability right now,” said Mark Fontanilla, who owns a market strategy consulting firm that specializes in structured finance. “Things are so uncertain, you need to have deployable, stable capital to be able to hold positions, especially less liquid ones, through the uncertainty.”Why the Mortgage Market Needs Its Fixes Fixed: QuickTakeIn some cases, asset managers’ private funds are bidding on assets being unloaded by their own publicly traded REITs. New Residential Investment Corp., managed by Fortress Investment Group, sold bonds with a face value of $6.1 billion. One of the buyers was an entity also affiliated with Fortress, the company disclosed in a filing Thursday.REITs with too much leverage and not enough liquidity have been the most prolific sellers. Leverage, used to increase returns when times are good, are now amplifying losses. This is typically done through so-called repurchase agreements, or repos, through which borrowers post securities as collateral. When the value of those assets drop, they must post more collateral or cash. When they can’t meet margin calls, banks may liquidate the assets, driving down prices even further.“I don’t think that the leverage amount that people have been using is inappropriate,” said Eric Reilly, a partner in Mayer Brown’s banking and finance group. “In order to get the returns that investors are looking for, whether you are a public REIT or a fund, it’s difficult to invest in high quality assets and meet your return.”In the past month, five mortgage REITs have notified investors that they’ve been unable to meet margin calls and started discussing forbearance agreements with their lenders. Other REITs have canceled, delayed or modified dividends, or liquidated riskier parts of their portfolios. While private funds also use leverage, they often have access to liquidity through capital calls, giving them more flexibility than their publicly traded peers. But they aren’t necessarily immune. Their problems may just be less apparent because of more relaxed disclosure requirements.“There are a lot more mortgage funds and real estate funds than mortgage REITs,” Reilly said. “There’s probably a couple of funds out there in some form of distress for every mortgage REIT you see.”Meanwhile, the market is waiting to see if the Fed sides with Barrack by including non-agency mortgage backed securities in its intervention efforts.For any relief program to work, all parties need to be part of the rescue program, including non-bank lenders, Reilly said.“This is nobody’s fault,” he said. “It came out of the blue, from across the world, and basically punched people in the mouth.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

04/03/2020 02:42 PM
Bet On a Greener Future With These 3 Energy Stocks

Bet On a Greener Future With These 3 Energy StocksDon't be fooled by the sudden jump in the price of oil or its impact on the broader markets. If long-term investors want more green in their portfolio, they ought to look at these three up-and-coming clean energy stocks.It's been a disappointing week for growth investors, who have been holding their breath for a key, market-based follow-through day (FTD) to emerge. And following a resoundingly terrible jobs report, an FTD is yet to emerge, with major indices modestly in the red and a recent rally off lows looking more and more like a dead cat bounce than a meaningful bottom.Yet despite current volatility, the price of oil and select energy stocks has many on Wall Street gushing with fresh optimism.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFollowing a move by China to restock its strategic petroleum reserve and President Trump asserting Russia and Saudi Arabia could soon end their oil supply war, the price of oil is sweeping higher off multi-decade lows for a second straight session. In its wake, many badly-beaten oil and gas stocks have caught a temporary lifeline and surged higher including large caps Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM). Thank god, right?Bottom-line, bullish price action in CVX stock, XOM and other well-capitalized companies could prove important to more than just those companies' shareholders. Continued strength in these industry titans could help with a broader technical recovery. * 7 Telecom Stocks That Are Worth a Close Look Still, for investors' with their eye on the future and more sustainable growth off and on the price chart, these stocks should be on the radar. Energy Stocks to Buy: Ballard Power Systems (BLDP) Source: Charts by TradingViewBallard Power Systems (NASDAQ:BLDP) is the first of our energy stocks to purchase. The $1.8 billion small-cap has been around for decades, even lurking around the darker alleys of Wall Street in days gone by. But the proton-based fuel cell play has turned the corner over the past year.Sales have been growing at Ballard Power, with the latest quarterly results delivering top-line sequential increase of 47% on revenues of $41.9 million. At the same time, year-over-year gains of 10% suggest Ballard's technologies are finally coming of age within the energy markets. And while it's not all rainbows and sunshine for BLDP stock just yet, forward-looking investors have shown a healthy interest over the past year.Currently, this energy stock has corrected to challenging a key support zone backed by multiple Fibonacci levels and prior intermediate highs. Our view is BLDP is a name to pick up on weakness, once a healthier market climate is confirmed with a follow-through day. Enphase Energy (ENPH) Source: Charts by TradingViewThe next of our energy stocks to buy is Enphase Energy (NASDAQ:ENPH). Prior to the COVID-19 pandemic, shares of this $3.5 billion solar mid-cap were on fire with growth investors. And for good reason too, as ENPH stock sports superior earnings and sales trends, and profitability besides.Technically, the correction-turned bear market has allowed shares of Enphase to pull back squarely to the intersection of growth and value on the price chart. I discussed as much in mid-March here on InvestorPlace. And that approval bears repeating given ENPH stock's ability to hold this area and integrity of its momentum-based uptrend. * 7 Telecom Stocks That Are Worth a Close Look Net net, if we're graced with a market-based FTD signal, this is another leading energy stock to pick up at advantageous prices. First Trust Clean Energy ETF (QCLN) Source: Charts by TradingViewThe last of our energy stocks to buy is the First Trust Clean Energy ETF (NASDAQ:QCLN). For investors that might otherwise shy away from buying individual growth companies, or who simply like the idea of diversifying within this area under one umbrella product, QCLN is an interesting play.Among this ETF's top holdings are Tesla (NASDAQ:TSLA), Brookfield Renewable Partners (NYSE:BEP), Albemarle Corp (NYSE:ALB), Hexcel (NYSE:HXL) and SolarEdge Technologies (NASDAQ:SEDG). That's a mix spanning the myriad possibilities of a greener future of renewable energy. It also smartly offers investors pure-play growth and more value-driven established companies.Technically and at its recent lows, the ETF's coronavirus-driven correction has put together an 'undercut' double-bottom pattern. The price action is made more compelling as the ETF has recently tested longer-term uptrend support and a 62% retracement level tied to its 2012 low.Bottom line, should a low become a more meaningful bottom in the broader market, QCLN is a great spot to park some money in energy stocks. And depending on investors' risk-tolerance, it may be okay for a test drive today as well.Disclosure: Investment accounts under Christopher Tyler's management own positions in First Trust Clean Energy ETF (QCLN), but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Bet On a Greener Future With These 3 Energy Stocks appeared first on InvestorPlace.

04/03/2020 02:30 PM
Look at American Airlines Stock Through a Wider Lens

Look at American Airlines Stock Through a Wider LensAmerican Airlines (NASDAQ:AAL) stock is down over 65% in 2020. But quite frankly every airline in the world is facing the same issue. Demand for their services is essentially zero. And it will be for the foreseeable future. That's not the headline story for AAL stock.Source: GagliardiPhotography / Shutterstock.com In no way do I mean to imply that the pandemic is not a serious event. But like other "Black Swan" events, it has put the entire industry on pause. And because all airlines face the same short-term consequences, it can be easy to think that every airline will benefit from a resurgence of consumer demand.However the real problem for AAL stock is one of math. Unlike many of its counterparts, the company was not showing robust growth before the novel coronavirus pandemic. And that was in the middle of an unparalleled economic expansion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe prudent investor knows that the industry will come back. And that's why you have to look at the health of the company before the outbreak. Those companies will be in the best position to recover quickly. Unfortunately, American cannot make that claim. American's Balance Sheet Was Already SickAmerican Airlines came into 2020 with $29.6 billion of adjusted net debt. That was 65% of the company's 2019 revenue. Of the major airlines, including Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL), American is the one that can least afford to go further into debt. Yet, that's exactly what is likely to happen. And that's why you have to think twice before investing in AAL stock. * 7 Telecom Stocks That Are Worth a Close Look Thanks in part to a lobbying effort by Airlines for America, an industry trade group, AAL is likely to receive a portion of the $50 billion loan package requested from the U.S. government. And, as InvestorPlace's Tom Taulli points out, American has friends in the right places. Warren Buffett's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) owns a 10% stake in the company and is unlikely to let it fail.But it is clear that the electorate is not in the mood for bailouts. If American Airlines receives a loan, it is going to be expected to pay it back. However, it is in the worst position to do it. For an investor, that means it may take AAL stock longer to turn a profit than airlines with less pre-pandemic debt.American has responded to critics, pointing out that it has $7.3 billion in liquidity, more than any other airline in the world. However, that cash is more than offset by the company's debt burden. The Audacity of HopeA lot has been made about our country's state of preparedness for the pandemic. For whatever reason, American Airlines made a tactical error in that regard. In early March the company issued guidance that seriously underestimated the lack of demand for its flights. On March 10, CEO Doug Parker stated the airline would reduce domestic capacity by 7.5% in April and international flights by at least 10% through the summer.But less than a week later, the company was forced to provide a revised estimate. At that time, AAL announced it would institute a 30% cut in domestic flights and a 75% reduction in international flights in April. The airline also said those reductions will likely become deeper during May.Investors don't take kindly to downward revisions to begin with. But American was on a short leash with its history of share buybacks that are drawing the ire of investors and Congressional leaders. From July 2014 through 2019, American bought $12.4 billion of its own stock. Would You Buy AAL Stock if There Was no Coronavirus?Right now, AAL stock is a hard pass. It has to be. This is not an alarmist statement that suggests American Airlines will become insolvent. The airline will be ready and able to fly passengers after the travel guidelines are rescinded.But when that will be and how soon consumers will come back are unanswerable questions, at least for now. Our world's response to the virus is a science experiment being played out in real time. Our world's response after the threat recedes will be the subject of doctoral theses for decades.InvestorPlace contributor Nicolas Chahine makes a case that American Airlines may be too much of a bargain to pass up at this price. He may be right, but if you're an investor who is looking at AAL stock, you have to know the consumer response before you consider investing.Starting from an equal playing field, there are other airline stocks that are more attractive.Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.  As of this writing Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Look at American Airlines Stock Through a Wider Lens appeared first on InvestorPlace.

04/03/2020 02:21 PM
Apple Stock Gets a Price Target Cut Based on 5G iPhone Launch Worries

Apple Stock Gets a Price Target Cut Based on 5G iPhone Launch WorriesSeptember is always a big month for Apple (NASDAQ:AAPL), and September 2020 was expected to be even bigger than usual.Source: View Apart / Shutterstock.com Fall is when Apple launches its new flagship iPhones. Even during this era of slowing smartphone sales, the iPhone is a critical driver of Apple stock growth. This September was to be the launch of the iPhone 12, Apple's first model to incorporate 5G connectivity. And that was expected to kick off the big upgrade cycle that has eluded the company over the past several years.With the novel coronavirus disruption, however, analysts for Wedbush Securities have concerns. That led to a big cut in their target price for Apple stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big Plans for the 5G iPhone 12 and Apple StockApple's iPhone business has been sliding for the past several years. In 2018, the company announced it would stop reporting unit sales in an attempt to take the focus off those slipping numbers. Recent predictions of upgrade "super cycles" have failed to materialize. However, it was thought Apple had a real shot this fall. * 7 Telecom Stocks That Are Worth a Close Look After a multi-year legal battle with Qualcomm (NASDAQ:QCOM), Apple finally settled with the smartphone chipmaker last April. That opened the door for 5G modems in iPhones. They wouldn't arrive in time for the iPhone 11, but with 5G networks in their infancy, Apple was fine with sitting last year out.However 5G is a much bigger deal this year. Last October, it was reported that the company was expecting to move 200 million iPhones in 2020 on the strength of a 5G iPhone 12, reclaiming its global No. 2 spot from China's Huawei.With the coronavirus pandemic, that scenario may be jeopardized. And that has significant implications for Apple stock. Wedbush Cuts Apple Price Target Based on iPhone 12 Launch ConcernsOn March 29, Wedbush Securities analysts Daniel Ives and Strecker Backe cut their 12-month price target on Apple stock from $335 to $247.74, citing concerns that the 5G iPhone 12 launch will be delayed.They believe that AAPL was positioned to sell a lot of new iPhones this fall.…this is not any ordinary year for Cook and Cupertino as the company is entering in our opinion one of its most important iPhone upgrade product cycles ever as the drumroll for the 5G super cycle was slated to kick off in the September timeframe…However, the coronavirus pandemic is complicating that picture. The Wedbush analysts are concerned about the potential for Apple's supply chain to be delayed in ramping production up in time for the traditional fall launch. They project this could cause the launch to be pushed to the holiday season, or even into 2021. In their worst case scenario, Apple suppliers don't hit full speed until June. This results in the 5G iPhone 12 launch being pushed as late as mid-2021. This not only delays the expected upgrade super-cycle, Apple could lose customers altogether in China. That country is expected to see a return to normalcy sooner than Western countries which are just beginning their coronavirus lockdowns. Chinese consumers may tire of waiting for the new iPhone and buy competing flagship smartphones that do offer 5G.However, Wedbush does see security in the company's Services division, which it describes as being "Teflon-like and poised to hit roughly $60 billion in FY21…" Is Wedbush Right About Apple Stock?Will Wedbush turn out to be correct about the coronavirus impact on the iPhone 12 launch and sales? Obviously, we won't know the answer to that question until closer to September. At this point, the firm's downgraded $247.74 price target is significantly lower than most of its peers. Among investment analysts surveyed by The Wall Street Journal, the median 12-month price target is $319.44 for AAPL.The one thing Wedbush and most analysts can agree on at this point, is that Apple stock retains a "buy" rating, regardless of what happens in September. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Apple Stock Gets a Price Target Cut Based on 5G iPhone Launch Worries appeared first on InvestorPlace.

04/05/2020 12:10 PM
New changes in law will help those near retirement and others weather coronavirus's financial storm

New changes in law will help those near retirement and others weather coronavirus's financial stormThe government has introduced several temporary changes that could help people shore up their finances and manage their retirement accounts.

04/04/2020 09:46 AM
Mike Khouw's Moderna Options Trade

Mike Khouw's Moderna Options TradeOn CNBC's "Options Action", Mike Khouw shared with the viewers his options trading idea for Moderna Inc (NASDAQ: MRNA), the company that is currently leading the race for a COVID-19 vaccine.The stock is trading close to its all-time high and the options premiums in the name are elevated, so Khouw wants to make a bullish bet by selling the May $30/$28 put spread for a credit of 80 cents. If the stock stays above $30 at the May expiration, Khouw is going to collect the premium. The trade starts to lose money below $29.20 and in case of a pullback to $28 or lower it would reach its maximal loss of $1.20.Extreme market volatility has pulled the rug out from under a lot of traders. Attend the virtual Benzinga Options Boot Camp to learn to trade options in a volatile market and start going after solid trades with absolute confidence. Register for FREE at benzingabootcamp.com before space fills up!See more from Benzinga * Tony Zhang's Nike Trade * Analysts Share Stocks They Would Buy In This Environment: Exxon Mobil, P&G And More * PIMCO CIO Says To Buy What The Fed Is Buying(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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