Stifel’sLawrence Stavitski andBret Ploucha explain why the earlier-than-expected removal of General Electric’s (GE) SIFI designation is good news for the industrial giant:
While the approval for rescission of SIFI status was generally accepted in substance as a formality given the dramatic reduction of GE capital through asset sales, the timing of the news is positive for GE as it brings the company one step closer to GE’s strategy of becoming a more pure play industrial company, setting the stage for GE’s plan for a 90%/10% Industrial/Financial mix in 2018 and beyond. Further, GE continues to close on GECC asset sales and is well on its way of closing its expected $200 billion worth of asset sales by the end of 2016. We reiterate our Buy rating and $34 target price based on 19x our $1.80 2017E EPS estimate. Please see our revised model as of June 30 attached. GE remains one of our top picks given its high quality defensive nature, solid management execution, and significant aftermarket/service stream revenues.
Best Managed Healthcare Stocks To Buy For 2017: SVB Financial Group(SIVB)
SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company offers deposit products, such as traditional deposit and checking accounts, certificates of deposit, money market accounts, and sweep accounts, as well as lockbox and merchant services; and lending products and services, including traditional term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credits, capital call lines of credits, and credit cards. It also provides cash management products and services comprising wire transfer and automated clearing house payment services, collection services, disbursement services, electronic funds transfers, and online banking services. In addition, the company offers foreign exchange services; letters of credit, including export, import, and standby letters of credit; investment services and solutions; brokerage; asset management; investment a dvisory services, such as outsourced treasury services; and non-banking products and services, such as funds management, venture capital/private equity investment, and equity valuation services. Further, it provides private banking services comprising mortgages, home equity lines of credit, restricted stock purchase loans, and other secured and unsecured lending services. As of March 09, 2012, the company operated 26 offices in the United States and 7 offices internationally. It serves customers in the technology, venture capital/private equity, life science, wine, and clean tech industries. The company was founded in 1982 and is headquartered in Santa Clara, California.
- [By Ben Levisohn]
The twenty stocks in Worth’s basket are: Ameriprise Financial (AMP) Bank of America, Banner (BANR), Citigroup, Citizens Financial Group (CFG), East West Bancorp (EWBC), First NBC Bank Holding (FNBC), HFF (HF), KeyCorp(KEY), Legacy Texas Financial Group (LTXB), Lincoln National (LNC), Morgan Stanley, Old National Bancorp (ONB), PacWest Bancorp (PACW), PNC Financial Services Group (PNC), Principal Financial Group (PFG), Stifel Financial (SF), SVB Financial Group (SIVB), TCF Financial (TCB), and Wells Fargo.
Best Managed Healthcare Stocks To Buy For 2017: Zynga Inc.(ZNGA)
Zynga Inc., incorporate on October 26, 2007, is a provider of social game services. The Company develops, markets and operates social games as live services played on mobile platforms, such as iPhone Operating System (iOS) and Android and social networking sites, such as Facebook. The Company operates through developing and monetizing social games segment. The Company has developed various social games, including games in its Slots, Words With Friends, Zynga Poker and FarmVille franchises. The Company also launched various games on mobile and Web, including Words on Tour and FarmVille: Harvest Swap in the Casual category; Black Diamond Casino and Princess Bride Slots in the Social Casino category; Empires & Allies in the Action Strategy category, and Mountain Goat Mountain.
The Company designs its social games to provide players with shared experiences that surprise and delight them. Its games are free to play, span a number of categories and attract a communi ty of players that is demographically and geographically diverse. The Company operates its games as live services and update them with content and features to make them social, develop player engagement and monetization. The Company analyzes the data generated by its players’ game play and social interactions to guide the creation of content and features. The Company operates its games as live services that are available anytime and anywhere. It designs its social games to provide players with access to shared experiences.
The Company invests in various game categories, including Social Casino, which includes Zynga Poker and its Slots games, such as Hit it Rich! Slots, Wizard of Oz Slots, Princess Bride Slots and Black Diamond Casino; Casual, which includes Words With Friends , which launched a localized version in over six languages, including Spanish, French, German and Italian. Games in this category provide chances for competition and allow its players to co nnect with friends and family when they start a game; Action! Strategy, which includes Empires & Allies. Games in this category emphasize on thinking and planning to achieve victory against other players. There is also a social focus as players can connect with friends to achieve a common goal, such as the Alliances feature in Empires & Allies, and Invest Express, which includes games, such as FarmVille, FarmVille 2 and FarmVille 2: Country Escape that allows its players to express their personalities by customizing the appearances of their farms.
The Company competes with DeNA Co. Ltd., Electronic Arts Inc., Gameloft SA, GREE International, Inc., Glu Mobile Inc., King.com Inc., Rovio Mobile Ltd., Supercell Inc., GungHo Online Entertainment, Inc., Kabam, The Walt Disney Company, Activision Blizzard, Inc., Riot Games, Valve, Take-Two Interactive, SEGA of America, Inc. and Tencent Holdings Limited.
- [By Maureen Farrell]
Before Facebook’s IPO, Morgan Stanley’s Silicon Valley-based technology investment banking team had won most of the highest profile social media IPOs, including Zynga (ZNGA), Groupon (GRPN), and LinkedIn (LNKD).
Top 5 Integrated Utility Companies To Own In Right Now: Exxon Mobil Corporation(XOM)
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. It also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products. As of December 31, 2015, the company had approximately 35,909 gross and 30,114 net operated wells. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas.
- [By Ben Levisohn]
Stocks will open lower this morning as oil continued to fall, and shares ofExxonMobil (XOM) andBP (BP) head lower following earnings reports.
sanjeev gupta/European Pressphoto Agency
S&P 500 futures have dropped 0.8%, while Dow Jones Industrial Average futures have fallen 0.8%. Nasdaq Composite futures have declined 0.8%. Oil has dropped 4% to $30.37 a barre.
Mattel (MAT) has climbed 7% to $28.62 after the toy company reported its first quarterly revenue gain in more than two years.
Dow Chemical (DOW) has gained 2.8% to $43.79 after the chemical company beat earnings and revenue forecasts.
Michael Kors (KORS) has soared 19% to $48.20 after the beaten down purveyor of purses and other accessories reported earnings that beat the Street consensus.
ExxonMobil (XOM) has fallen 1.9% to $74.81 even though the oil giant beat earnings forecasts, as BP’s (BP) reported a monster loss that has put a damper on the entire industry. BP has tumbled 8.3% top $29.07.
- [By Javier Hasse]
Finally, some more popular stocks that saw net selling over July included Exxon Mobil Corporation (NYSE: XOM), Sprint Corp (NYSE: S) and LinkedIn Corp (NYSE: LNKD).
- [By Ben Levisohn]
Shares of energy stocks, including ExxonMobil (XOM), Chevron (CVX), Whiting Petroleum (WLL), and Devon Energy (DVN), are surging on reports that OPEC has agreed to to limit the amount of oil its members produce. Bloomberg’s Nayla Razzouk,Grant Smith, and Angelina Rascouetreport:
OPEC agreed to cut production for the first time in eight years, according to a delegate briefed on the matter, sending oil prices more than 6 percent higher as Saudi Arabia and Iran wrong-footed traders who expected a continuation of the pump-at-will policy the group adopted in 2014.
In two days of round-the-clock talks in Algiers, the group agreed to drop production to 32.5 million barrels a day, the delegate said, asking not to be named because the decision isnt yet public. Thats nearly 750,000 barrels a day less than it pumped in August.
The deal will reverberate beyond the Organization of Petroleum Exporting Countries. It will brighten the prospects for the energy industry, from giants like Exxon Mobil Corp. to small U.S. shale firms, and boost the economies of oil-rich countries such as Russia and Saudi Arabia. For consumers, however, it will mean higher prices at the pump.
In a note published last week, RBC’s Helima Croftand team pointed to the possibility ofsuch an outcome:
With OPEC and Russia set to meet on the sidelines of the International Energy Forum in Algiers next week, market participants will be eagerly watching to see if the increasingly cash-strapped sovereign producers will be able to reach the collective output agreement that eluded them in Doha. This time, we believe that the environment is more conducive to some type of deal, and if there is not enough time to iron out all the details in just a few days, the ensuing statement will strongly suggest a willingness to act at the November meeting (assuming that market conditions remain challenging).
Perhaps most compelling, many of
Best Managed Healthcare Stocks To Buy For 2017: Moneygram International, Inc.(MGI)
MoneyGram International, Inc., together with its subsidiaries, provides money transfer and payment services in the United States and internationally. The company operates in two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment provides money transfer and bill payment services primarily to unbanked and underbanked consumers. Its bill payment services allow consumers to make bill payments, pay routine bills, or load and reload prepaid debit cards with cash at an agent location, company-operated locations, or through moneygram.com with a credit or debit card, as well as through kiosks, ATMs, prepaid cards, and direct-to-bank account products. The Financial Paper Products segment provides money orders to consumers through its retail agents and financial institutions; and offers official check outsourcing services for financial institutions. This segment sells its money orders under th e MoneyGram brand and on a private label or co-branded basis with retail and financial institution agents. MoneyGram International, Inc. was founded in 1926 and is headquartered in Dallas, Texas.
- [By Lisa Levin]
Moneygram International Inc (NASDAQ: MGI) shares were also up, gaining 21 percent to $5.74 after the company reported upbeat Q4 earnings.
Equities Trading DOWN
Best Managed Healthcare Stocks To Buy For 2017: Akorn, Inc.(AKRX)
Akorn, Inc., a specialty generic pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals in the United States and internationally. It operates in two segments, Prescription Pharmaceuticals and Consumer Health. The Prescription Pharmaceuticals segment markets generic and branded ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays. This segments generic products include Atropine Sulfate Ophthalmic Solution; Clobetasol Propionate Ointment; Dehydrated Alcohol Injection; Ephedrine Sulfate Injection; Hydralazine Hydrochloride Injection; Lidocaine Ointment; Methylene Blue Injection; Myorisan Soft Gelatin Capsules; Nembutal Sodium Solution; and Progesterone Capsules. The Consumer Health segment markets branded and private label animal health products, as well as OTC products for the treatment of dry eye under the TheraTears brand name. This segment also markets other OTC consumer health products, including Mag-Ox, a magnesium supplement, as well as the Diabetic Tussin line of cough and cold products. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois.
- [By Ben Levisohn]
Shares of Endo International (ENDP) have tumbled 40% today after it said profits would fall well short of analyst expectations thanks, in part, to plunging generic drug prices. Leerink’s Jason Gerberry and team look for specialty pharmaceutical companies that have similar business models–and find Akorn (AKRX), Perrigo (PRGO), and Teva Pharmaceutical Industries (TEVA). They explain:
Best Managed Healthcare Stocks To Buy For 2017: Bonanza Creek Energy, Inc.(BCEI)
Bonanza Creek Energy Inc., an independent energy company, engages in the acquisition, exploration, development, and production of onshore oil and associated liquids-rich natural gas in the United States. The companys oil and liquids weighted assets are located primarily in the Wattenberg Field in Colorado; and the Dorcheat Macedonia Field in southern Arkansas. It also owns and operates oil-producing assets in the North Park Basin in Colorado; and the McKamie Patton Field in Southern Arkansas. Bonanza Creek Energy Inc. was founded in 2010 and is headquartered in Denver, Colorado.
- [By Lisa Levin]
Shares of Bonanza Creek Energy Inc (NYSE: BCEI) were down 39 percent to $1.39. Bonanza Creek Energy has retained Perella Weinberg Partners to advise the company and assist in analyzing and evaluating financial and transactional alternatives, including restructuring options.
- [By Robert Rapier] For those who are unaware, each month there is a joint web chat for subscribers of The Energy Strategist (TES) and MLP Profits. The chat is conducted by Igor Greenwald, managing editor for TES and chief investment strategist for MLP Profits, and myself. This month’s chat took place on Sept. 10.
We place a priority on answering questions about portfolio holdings and recommendations during the chat, but often we get questions about companies we don’t currently recommend. Or, we sometimes get questions or comments about a company that require an extended answer. In these cases we push those questions to the end, and attempt to answer them if time allows. For this past chat there were several questions remaining at the end, which I will address here today. For each company, a brief background is presented for readers who may not be familiar with the company.
Q: What is your view of BCEI at the present price?
Bonanza Creek Energy (NYSE: BCEI) is a Denver-based oil and gas company with operations in Colorado and southern Arkansas. While the Bakken Formation in North Dakota and the Eagle Ford Shale in Texas get more press, oil and gas plays in the Denver-Julesburg Basin have helped turn Colorado into one of the fastest growing energy producing states in the country and the fastest growing oil producer in the Rocky Mountains. Since 2008 oil production in Colorado has risen by an impressive 63 percent to a 50-year high.
BCEI is well-positioned with acreage in the Wattenberg Gas Field north of Denver. The field is one of the largest natural gas plays in the US. Wattenberg represents 60 percent of BCEI’s proved reserves, with 59 percent of those reserves classified as liquid. Of the company’s remaining reserves, 39 percent are located in the oil-bearing Cotton Valley Sands in Southern Arkansas (68 percent liquids) and 1 percent in Colorado’s North Park Basin (100 percent liquids).
BCEI has gr own reserves at a 45