Well, it looks like Medivation (MDVN) now has five suitors after reports that Amgen (AMGN) is joining Pfizer (PFE), Sanofi (SNY), AstraZeneca (AZN) and Novartis (NVS) in considering a bid. Maxim’s Jason Kolbert and Jason McCarthy offer their thoughts:
Medivation reports tonight at 4:30pm…
We expect the focus to be on the recent proposals from Sanofi (SNY $38.75- NR); Pfizer (PFE $33.40 -NR), AstraZeneca (AZN $28.26-NR) and just today, Amgen (AMGN – $154.18 – NR)…
Medivation is returning to new highs as suitors line up to make acquisition bids. In this scenario what is the right discount rate for modeling purposes?
We believe our model for Xtandi revenues is good, therefore we review our risk rating and determine the following: 30% = $47 15% = $76 10% = $99
With Medivation’s board having now said No to anything less than $65 per share, it suggests to us that the stability and predictability of Xtandi’s revenues is greater than we thought, the risk is lower. Our intermediate risk rating is 15% or $76 fair value.
5 Best Freight Stocks To Watch Right Now: Beazer Homes USA, Inc.(BZH)
Beazer Homes USA, Inc., incorporated on November 24, 1993, is a diversified homebuilder with operations in 16 states within three geographic regions in the United States: West, East and Southeast. The Companys homes are designed to appeal to homeowners at various price points across various demographic segments and are generally offered for sale in advance of their construction.
The Company has three homebuilding segments: West, which includes Arizona, California, Nevada and Texas; East, which includes Delaware, Indiana, Maryland, New Jersey, New York, Pennsylvania, Tennessee (Nashville) and Virginia; and Southeast, which includes Florida, Georgia, North Carolina (Raleigh) and South Carolina. The Company partners with Moen, Certain Teed and DuPont Tyvek. The Company provides information about the active communities through its Internet Website located atwww.beazer.com.
- [By Federico Zaldua]
Beazer Homes USA (BZH), the diversified home-builder which is held by Mario Gabelli from GAMCO Investors, is my top play among single-family and multi-family home builders. While I believe higher interest rates should slow the pace of margin expansion for Beazer, I also believe higher top line growth will more than compensate interest rate effects on net earnings. As a matter of fact, I think gross margins are going to go north of 17.5% by the end of 2014 while top-line should keep on growing at a rate of 25%.
5 Best Freight Stocks To Watch Right Now: The Hain Celestial Group, Inc.(HAIN)
The Hain Celestial Group, Inc. manufactures, markets, distributes, and sells organic and natural products in the United States, the United Kingdom, Canada, and Europe. Its grocery products include infant formula; infant, toddler, and kids foods; diapers and wipes; rice and grain-based products; flour and baking mixes; breads, hot and cold cereals, pasta, condiments, cooking and culinary oils, granolas, granola bars, and cereal bars; canned, chilled fresh, aseptic, and instant soups; Greek-style yogurt; chilies and packaged grains; and chocolates and nut butters, as well as plant-based beverages and frozen desserts, such as soy, rice, almond, and coconut. The companys grocery products also comprise juices, hot-eating, chilled and frozen desserts, cookies, crackers, gluten-free frozen entrees and bars, frozen pastas and ethnic meals, frozen fruits and vegetables, cut fresh fruits, refrigerated and frozen soy protein meat-alter native products, tofu, seitan and tempeh products, jams, fruit spreads and jelly, honey, marmalade, and other food products. In addition, it provides snack products, such as potato, root vegetable, and other vegetable chips, as well as straws, tortilla chips, whole grain chips, pita chips, puffs, and popcorn; specialty teas, including herbal, green, black, wellness, rooibos, and chai tea lattes; ready-to-drink beverages comprising organic kombucha and chai tea lattes; personal care products consisting of skin, hair and oral care, deodorants, baby care items, acne treatment, body washes, and sunscreens; and poultry and protein products, such as turkey and chicken products. The company sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and club, and drug and convenience stores in approximately 70 countries worldwide. The Hain Celestial Group, Inc. was founded in 1993 and is headquartered in Lake Success, New York.
- [By Ben Levisohn]
JPMorgan’s Ken Goldman and Joshua Levine explain why they’re refusing to follow at least six of their fellow analysts and cut their rating on Hain Celestial Group (HAIN) after the natural-products company said it had to delay the release of its earnings due to accounting irregularities:
- [By Motif Investing]
The motif also has received some help from component Hain Celestial Group Inc (NASDAQ: HAIN), which has seen its stock rise 3.2 percent in the past month following the company’s earnings report last month, which underperformed profit expectations but no doubt helped prompt the company to announce a renewed focus on the bottom line.
Top Diversified Bank Companies To Watch For 2017: Yahoo! Inc.(YHOO)
Yahoo! Inc., together with its subsidiaries, provides search and display advertising services on Yahoo properties and affiliate sites worldwide. The company offers Yahoo Search that serves as a guide for users to discover information on the Internet; Yahoo Mail, which connects users to the people and content; and Yahoo Messenger, an instant messaging service, which enables users to connect, communicate, and share experiences in real-time. It also provides digital content products, including Yahoo News, which gives users to discover, consume, and engage around the news, content, and video; Yahoo Sports, which serves audiences of sports enthusiasts; Yahoo Finance that offers a range of financial data, information, and tools; Yahoo Lifestyle to engage users passionate about style and fashion; and Tumblr, which provides a Web platform and mobile applications on iOS and android to create, share, and curate content, as well as Tumbl r messaging that enables users to engage with other users that share their same interests and passions. In addition, the company provides advertiser products, such as Yahoo Gemini, a marketplace for search and native advertising; and BrightRoll, which offers a suite of media-agnostic tools to enable advertisers, publishers, and partners connect with users across ad formats and devices. Further, it offers advertising formats; and digital advertising products, such as Yahoo native, Yahoo video, Yahoo premium, and Yahoo audience ads. Additionally, the company offers Yahoo Mobile Developer suite consisting of Flurry Analytics, Yahoo App Publishing, Yahoo App Marketing, and Tumblr In-App Sharing tools to measure, monetize, advertise, and improve their apps. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California.
- [By Igor Novgorodtsev]
Google has updated its installation policies for AdWords affiliates such as browser toolbar makers which became active for most companies early this year. This change led to a number of articles on Seeking Alpha making a short case for AVG and Perion as well as some rebuttals from me and other authors. The biggest flaw in the "short case" was a failure to recognize that Google is not the only game in town. While Google commands a dominant 68% search market share, Bing (MSFT) with 18% and Yahoo (YHOO) with 11% are desperate to keep pace and do not impose equally onerous terms on its affiliates. Conduit dumped Google for Bing almost three years ago for US users. I speculate that the new company will become a predominantly Bing shop (Yahoo also runs on Bing with revenue sharing) removing remaining headwinds from Google policy changes, which put a dent in Perion’s and Conduit’s revenue this year. If Perion switches to Conduit’s search page and toolbar, the switch to Bing for US users would become immediate and automatic.
- [By Jonas Elmerraji]
It’s been a challenging year for Yahoo! (YHOO), but you wouldn’t know it from this stock’s price action. Yahoo! has rallied more than 47% year-to-date, buoyed by major changes in the firm’s structure — and conspicuous leadership from CEO Marissa Mayer. But Yahoo!’s new logo is a good metaphor for the transformation at the company: The new logo was announced with much excitement, but most users probably wouldn’t have noticed it otherwise.
Arguably paying too much for Tumblr, and still lacking a real unique selling proposition the new Yahoo! looks way too much like the old Yahoo!.
But while this stock built a reputation for being a dot-com era dinosaur, investors neglected the fact that this stock has had a really attractive business all along. Despite some big missteps, Yahoo! remains one of the biggest destinations on the internet, and all those eyes on its Web sites contribute to hefty net profit margins from operations.
Yahoo!’s cash position has been a blessing and a curse for investors in the last few years. A brilliant investment in Alibaba has contributed to a cash and investment position of more than $7.6 billion at last count, covering more than a quarter of YHOO’s market cap. While that does help to reduce risk, Yahoo! either needs to figure out internal investments that yield meaningful rates of return, or give the money back to shareholders.
Just don’t underestimate this stock’s potential in 2013; Yahoo! may be a dinosaur, but at least it’s a T-Rex.
- [By Monica Gerson]
Verizon Communications Inc. (NYSE: VZ) and others are expected to bid around $2 billion to $3 billion for Yahoo! Inc.’s (NASDAQ: YHOO) core Internet business, according to sources as reported by the Wall Street Journal on Friday. That’s about 50% of the previous estimates of $5 billion to $8 billion. Yahoo shares gained 0.25 percent to $36.59 in the after-hours trading session.
- [By Douglas A. McIntyre]
To further show YouTube’s dominance, minutes per view on the site were 521.6 in August. AOL Inc.’s (NYSE: AOL) were 56.8, Microsoft Corp. (NASDAQ: MSFT) sites registered 33 minutes, and Yahoo! Inc. (NASDAQ: YHOO) sites 79.2. Facebook Inc. (NASDAQ: FB) posted a pitiful 21.6.
5 Best Freight Stocks To Watch Right Now: Halliburton Company(HAL)
Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.
- [By Ben Levisohn]
Evercore ISI’s James West and team explain whyHalliburton (HAL) remains their “North American Winner” among oil-field-services stocks:
A Structural Favorite. Halliburton remains one of our favorite stocks in the group and the management team’s relentless pursuit of efficiency and aggressive positioning for the upcycle will likely make the stock one of the top performers in the OFS space. Within the diversified peer group, we believe Halliburtonis best positioned to benefit from the unfolding increase in oilfield services activity in North America, as it remains markedly more levered to North America compared to its competitors. Once the recovery (which is already in a nascent stage) further takes hold, NAM activity will react the quickest and the strongest, which should allow Halliburtonto see higher company-wide revenue growth and margin expansion than its peers. Internationally, and following Baker Hughes’ (BHI) decision to exit some international markets and product lines, we expect the international dominance of Halliburtonand Schlumberger (SLB) (which allowed for +20% margins pre-20 09) to return, with Halliburtonas the primary beneficiary of market share gains and better pricing. In anticipation of the upturn, the company continues to execute and gain market share through the downturn. We see a path to $4.00+ in EPS and a $60+ stock price in the not too distant future.
Shares ofHalliburton have dropped 2.9% to $42.79 at 1:55 p.m. today, while Schlumberger has fallen 2.3% to $78.79, and Baker Hughes has declined 1.7% to $49.14.
- [By Ben Levisohn]
On a great day for theVanEck Vectors Oil Services ETF (OIH) and big holdings like Schlumberger (SLB), Halliburton (HAL), and Baker Hughes (BHI), Weatherford International (WFT) is doing better than most. One reason: Barclays analystsJ. David Anderson andWilliam Thompson upgraded Weatherford to Overweight from Equal Weight. They explain why:
5 Best Freight Stocks To Watch Right Now: Prestige Brand Holdings Inc.(PBH)
Prestige Brands Holdings, Inc., together with its subsidiaries, engages in marketing, selling, and distributing over-the-counter healthcare and household cleaning products primarily in North America. The company?s Over-The-Counter Healthcare segment offers a portfolio of OTC products under nine core OTC brands, including Chloraseptic sore throat remedies, Clear Eyes eye drops, Compound W wart removers, Dramamine motion sickness products, Efferdent and Effergrip denture products, Little Remedies pediatric healthcare products, Luden’s cough drops, PediaCare pediatric healthcare products, and The Doctor?s brand of oral care products. This segment also provides other significant brands that include Dermoplast first-aid products, Murine eye and ear care products, NasalCrom allergy relief product, New-Skin liquid bandage, and Wartner wart removers. Its Household Cleaning segment markets household cleaning products, such as abrasive and non-abrasive tub and tile cleaner, scrubb i ng pads and sponges, dilutables, anti-bacterial hard surface spray for counter tops, and glass cleaners under the Comet, Chore Boy, and Spic and Span brands. Prestige Brands Holdings distributes its products through various retail channels, including drug, food, dollar, and club stores, as well as supermarkets and mass merchandisers. The company was founded in 1996 and is headquartered in Irvington, New York.
- [By Ben Levisohn]
Castor believes the cash has disappeared into working capital, which has grown from 23% to more than 50% since 2008. Comparable company PrestigeBrand (PBH) uses 11%; Unilever(UL) and Colgate-Palmolive(CL) far less.