Hot India Stocks To Watch For 2016

You’ve probably seen growing numbers of headlines about activist investors and strategies in the financial media, but what do you know about this trend? Let’s take a look at what activist investing involves along with some examples of famous activist investors and themes you can follow.

What are activist strategies?

In most cases, activist strategies involve purchasing large quantities of a company’s stock, gaining access to its board of directors and influencing significant changes to business and operational strategies with the end goal of boosting shareholder value.

Because you need quite a bit of capital to take on activist positions, most activist investors are hedge funds, private equity firms or very wealthy individuals.

Hot India Stocks To Watch For 2016: Regeneron Pharmaceuticals, Inc.(REGN)

 

Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions worldwide. Its marketed products include EYLEA injection for the treatment of neovascular age-related macular degeneration (AMD) and macular edema; ZALTRAP, an injection for intravenous infusion for the treatment of patients with metastatic colorectal cancer; and ARCALYST, an injection for subcutaneous use for the treatment of cryopyrin-associated periodic syndromes comprising familial cold auto-inflammatory syndrome and muckle-wells syndrome in adults and children. The companys trap-based clinical product candidates comprise EYLEA for the treatment of AMD and diabetic macular edema; and ZALTRAP for oncology. Its antibody-based clinical programs include various human monoclonal antibody product candidates, such as REGN727 for low-density lipopro tein cholesterol reduction and for the prevention of cardiovascular events; REGN88 for rheumatoid arthritis and non-infectious uveitis; REGN668 for atopic dermatitis, asthma, nasal polyposis, and eosinophilic esophagitis; REGN2222 for respiratory syncytial virus; REGN1033 for skeletal muscle disorders; and REGN2176-3 and REGN910-3 antibodies for use in ophthalmology. The company is also developing REGN1908-1909, REGN1154, REGN1500, and REGN1193 antibody product candidates; REGN1400, REGN1979, and REGN2810 for oncology; and REGN475 for the treatment of pain. It has collaborations with Sanofi and Mitsubishi Tanabe Pharma Corporation; license and collaboration agreement with Bayer HealthCare; and Avalanche Biotechnologies, Inc., as well as Biomedical Advanced Research and Development Authority of the U.S. Department of Health and Human Services. The company was founded in 1988 and is headquartered in Tarrytown, New York.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Regeneron Pharmaceuticals (REGN) lost a patent case with Amgen (AMGN) and now a judge will have to make a decision regarding an injunction on sales of Praluent. Citigroup’s Robyn Karnauskas and Mohit Bansal provide and update:

    We spoke to Regeneron regarding the timelines of the injunction decision in the PCSK9 patent case and the company noted that the Judges opinion could come in 3-4 months. The hearing on injunction took place last week and the Judge now will have to form an opinion based on the hearing. This typically takes 3-4 months to get the opinion per the company.

    This makes Dupilumab phase 3 data in Atopic Dermatitis next important catalyst. As we noted before, we see $25/sh upside on positive data and $50-$60/sh downside on negative data. Investors are concerned that overhang due to the patent case could limit the upside with Dupilumab phase 3 data. Regeneron has said Dupilumab data would come in 1H16 while Sanofi (SNY) has said SOLO-1/2 data will readout in Q116 while CRONOS will readout in Q216.

    Shares of Regeneron Pharmaceuticals have gained 1.3% to $368.55 at 2:40 p.m. today, while Amgen has advanced 0.6% to $149.36, and Sanofi has climbed 2.8% to $39.84.

  • [By Ben Levisohn]

    Catalysts remain significant for the biotech industry: The biotech industry
    obviously remains open to swings given the political landscape. That said,
    fundamental catalysts for new drugs are also beginning to favor biotech again
    with PCSK9 outcomes studies, new drug launches from Regeneron (REGN), Amgen (AMGN) and Biogen (BIIB) possible in 2017 and key PhIII readouts for Celgene (CELG) and Incyte (INCY) in 2017.

  • [By Ben Levisohn]

    Regeneron Pharmaceuticals (REGN) has dropped 1.5% to $407.65 after getting cut to Market Perform from Outperform at Wells Fargo.

    Boeing (BA) has fallen 2.2% to $129.80 after BofA Merrill Lynch cut the airline manufacturer to Underperform from Neutral.

  • [By Ben Levisohn]

    Do we need to remind you how hard biotech stocks have been hit this year? If you read this blog, probably not, but we’ll do it anyway. The iShares Nasdaq Biotechnology ETF (IBB) has fallen 24%, while Gilead Sciences (GILD) has declined 8.7%, Biogen (BIIB) has fallen 17%, Celgene (CELG) has dropped 16%, and Regeneron Pharmaceuticals (REGN) has plunged 32%. Yet despite these drops–and the decline in valuation that accompanied them–the Janus Equity Team contends nothing has changed for the sector:

Hot India Stocks To Watch For 2016: The Charles Schwab Corporation(SCHW)

 

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, money management, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. It offers brokerage products, such as brokerage accounts; individual retirement accounts; retirement plans for small to large businesses; 529 college savings accounts; designated brokerage accounts; equity incentive plan accounts; and margin loans, as well as access to fixed income securities, equity and debt offerings, options, and futures. The company also provides no-load, proprietary, and other third-party mutual funds, as well as mutual fund trading and clearing services to broker-dealers; and third-party and proprietary exchange-traded funds. In addition, it offers advice solutions, including separately managed accounts, customized personal advice for tailored portfolios, an d specialized planning and full-time portfolio management; and trust custody services, personal trust reporting services, and administrative trustee services. Further, the company provides banking products, such as checking accounts linked to brokerage accounts, savings accounts, certificates of deposit, demand deposit accounts, first lien residential real estate mortgage loans, home equity loans and lines of credit, and personal loans and entity lending collateralized by securities. It serves individuals and institutional clients in the United States, the Commonwealth of Puerto Rico, London, and Hong Kong. The Charles Schwab Corporation was founded in 1971 and is headquartered in San Francisco, California.

Advisors’ Opinion:

  • [By Matthew Smith]

    Although we were not surprised by the move yesterday we did not take an overly aggressive stance in positioning the portfolio to benefit from the Fed not tapering. We were long, but we did not initiate any trades solely for the purpose to benefit from the announcement. We are more interested in the long-term wealth building of portfolios right now and as such believe that readers should look to our recent winners that had pullbacks yesterday as buying opportunities. Specifically, we like Ameritrade (AMTD), Charles Schwab (SCHW) and MetLife (MET) which all saw pullbacks ranging from 2.5% to a bit over 5.5% in yesterday’s session. We highlighted the discount brokers as a sector to watch right before the latest takeoff and our belief is that although rates remain unchanged the brokerage business will continue to perform strongly. The next big move up will be as rates rise, but even if one has to wait for this move it will be well worth it for one’s portfolio.

5 Best Industrial Disributor Stocks To Watch Right Now: Clean Diesel Technologies Inc.(CDTI)

Clean Diesel Technologies, Inc. engages in the manufacture and distribution of emissions control systems and products for heavy duty diesel and light duty vehicle markets. The company operates in two divisions, Heavy Duty Diesel Systems and Catalyst. The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions that are used to reduce exhaust emissions created by on-road, off-road, and stationary diesel and alternative fuel engines, including propane and natural gas. Its products include closed crankcase ventilation systems, diesel oxidation catalysts, diesel particulate filters, Platinum Plus fuel-borne catalysts, ARIS selective catalytic reduction reagents, catalyzed wire mesh diesel particulate filters, alternative fuel products, and exhaust accessories. This division offers its products for original equipment manufacturers of heavy duty diesel equipment, such as mining equipment, vehicles, generator sets, and construction equipment, as well as retrofit customers consisting of school districts, municipalities, and other fleet operators. The Catalyst division produces catalyst formulations using its proprietary MPC technology for gasoline, diesel, and natural gas induced emissions. Its products comprise catalysts for gasoline engines, diesel engines, and energy applications. This division supplies its catalysts to automotive manufacturers and large heavy duty diesel engine manufacturers. The company sells its products through a network of distributors and dealers, and its direct sales force worldwide. Clean Diesel Technologies, Inc. is based in Ventura, California.

Advisors’ Opinion:

  • [By Monica Gerson]

    Clean Diesel Technologies, Inc. (NASDAQ: CDTI) is projected to post a quarterly loss at $0.18 per share on revenue of $10.25 million.

    Sphere 3D Corp. (NASDAQ: ANY) is estimated to post a quarterly loss at $0.11 per share on revenue of $22.10 million.

Hot India Stocks To Watch For 2016: Terex Corporation(TEX)

 

Terex Corporation operates as a lifting and material handling solutions company. Its Aerial Work Platforms segment designs, manufactures, services, and markets aerial work platform equipment, telehandlers, and light towers, as well as related components and replacement parts under Terex and Genie names. The companys Construction segment offers compact construction equipment, including loader backhoes, mini and midi excavators, wheeled excavators, site dumpers, compaction rollers, skid steer loaders, and wheel loaders; and specialty equipment, such as material handlers, concrete mixer trucks, and concrete pavers. Its Cranes segment designs, manufactures, services, refurbishes, and markets mobile telescopic, tower, lattice boom crawler, lattice boom truck, utility equipment, and truck-mounted cranes, as well as related components and replacement parts under Terex name. The companys Material Handling & Port Solutions segment offers industrial cranes, such as universal cranes, process cranes, rope and chain hoists, electric motors, light crane systems, and crane components; and port and rail equipment, including mobile harbor cranes, straddle and sprinter carriers, gantry cranes, reach stackers, empty and full container handlers, general cargo lift trucks, automated stacking cranes, automated guided vehicles, terminal automation software, and related components and replacement parts. Its Materials Processing segment provides materials processing equipment, such as crushers, washing systems, screens, apron feeders, chippers, and related components and replacement parts under the Terex and Powerscreen brands. The company also provides financing solutions to assist customers in the rental, leasing, and acquisition of its products. It serves the construction, infrastructure, quarrying, mining, manufacturing, transportation, energy, and utility industries worldwide. Terex Corporation was founded in 19 25 and is based in Westport, Connecticut.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of Terex (TEX) had surged 32% as of the close of trading last Thursday–but dropped 14% the next day after China’s Zoomlion announced that it wouldn’t be pursuing a purchase of the U.S. crane maker after all. In the aftermath of the scuttled deal, Morgan Stanley’s Mili Pothiwala and Nigel Coe cut Terex to Equal Weight from Overweight:

    Balint Porneczi/Bloomberg News

    On Friday morning, Zoomlion announced it had terminated its bid for its proposed acquisition of Terex for $31/ share. This was a clear negative for Terex shares, which traded down ~15% on Friday to $20, given the absence of an event-driven catalyst (following the sale of MHPS to Konecranes, which we assume will be completed). However, we think that the stock’s current discount to the Machinery group on a P/E basis (20%+) is justified, given a still challenged underlying operating environment for the RemainCo, as well as historically uneven company execution – both of which return to the forefront of the investment debate following the removal of the M&A bull case.

    To which all we can say is: Oops.

    Shares of Terex have dropped 0.5% to $20.78

     

  • [By Ben Levisohn]

    Yesterday, Terex (TEX) announced that it would sell its ports business to Konecranes for $1.3 billion. Today, Baird’s Mircea Dobre and Joseph Grabowski upgraded Terex to Outperform from Neutral, arguing that the sale makes a takeover by China’s Zoomlion that much easier. They explain:

    Balint Porneczi/Bloomberg News

    The sale of MHPS to Konecranes is a positive catalyst on multiple fronts: shareholders got an attractive multiple for what historically has been a challenged business with further upside possible given 25% equity ownership in Konecranes, execution risk is diminished as new CEO can focus on operational improvement without the effort required to integrate the Terex and Konecranes businesses, and finally, the MHPS sale makes it easier for Zoomlion to acquire remaining Terex.

    While our upgrade is not reliant on Zoomlion acquiring Terex, the MHPS transaction could make a firm Zoomlion offer more likely.

    At the margin, a Zoomlion deal appears easier to get done: 1) the remaining businesses fit better with Zoomlions existing product portfolio of construction equipment, cranes, and various commercial and municipal equipment, 2) given the attractive terms of the MHPS sale, the funding hurdle required to acquire Terex is lowered, 3) many of the CFIUS issues center around national security concerns regarding the nations ports, no longer a concern given MHPS sale.

    Dobre and Grabowski also raised their price target on Terex to $30, up from $24. With Terex off 0.1% at $24.88 today, that leaves 21% upside in the stock to Baird’s target.

    In February, I wrote about Chinese demand for U.S. companies, including Terex.

  • [By Ben Levisohn]

    RBC’sSeth Weber and team offer their thoughts on Zoomlion’s revised bid for Terex (TEX):

    Bloomberg News

    After the close today, Terex announced that it is moving forward in its negotiations with Zoomlion Heavy Industry Science and Technology Co. following receipt of a non-binding proposal from the Chinese company to acquire all outstanding shares for $31/share in cash.

  • [By Ben Levisohn]

    Third and a trigger for the change: China becomes an active bidder in the space. Chinas Zoomlion bid for Terex (TEX) ($3.3B) along with Haier/General Electric (GE) ($5.4B) and several ChemChina proposed deals in industrials changes the upside/downside skew, particularly on lower quality/more challenged names. The Terex bid does not appear to be one-off. Chinese outbound M&A announcements rose to record highs in 15; to $112B (up 57% from 2014) in total acquisitions. Industrials formed a large and rising portion, at ~12B completed. Thats roughly equal to the 3 prior years industrials deals combined, and is the highest on record. Energy and materials accounted for ~15% of 15 spend vs. ~83% in 2011. Even lower quality or more currently challenged machinery franchises have distribution which could be highly attractive to new entrants…

Hot India Stocks To Watch For 2016: Cracker Barrel Old Country Store Inc.(CBRL)

Cracker Barrel Old Country Store, Inc., through its subsidiaries, engages in the development and operation of the Cracker Barrel Old Country Store restaurant and retail concept in the United States. Its restaurants provide breakfast, lunch, and dinner. The company?s gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, apparel, toys, music CD?s, cookware, old-fashioned-looking ceramics, figurines, a book-on-audio sale-and-exchange program, and various other gift items, as well as candies, preserves, pies, cornbread mixes, coffee, syrups, pancake mixes, and other food items. As of November 22, 2011, it operated 608 company-owned locations in 42 states. The company was formerly known as CBRL Group, Inc. and changed its name to Cracker Barrel Old Country Store, Inc. in December 2008. Cracker Barrel Old Country Store, Inc. was founded in 1969 and is headquartered in Lebanon, Tennessee.

Advisors’ Opinion:

  • [By Monica Gerson]

    Analysts are expecting Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) to have earned $1.80 per share on revenue of $705.65 million in the latest quarter. Cracker Barrel shares gained 0.67 percent to $152.50 in after-hours trading.

  • [By Jake L’Ecuyer]

    Cracker Barrel Old Country Store (NASDAQ: CBRL) shares tumbled 2.50 percent to $104.32 after the company reported a 1.1% drop in its fiscal fourth-quarter earnings and issued a downbeat Q1 forecast.

Hot India Stocks To Watch For 2016: Avid Technology Inc.(AVID)

Avid Technology, Inc. provides digital media content-creation products and solutions for audio, film, video, broadcast professionals, artists, and creative enthusiasts in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers various software and hardware professional video-editing solutions, including Media Composer product line, which is used to edit television programs, commercials, and films; NewsCutter and iNews Instinct editors for news production; and Avid Symphony Nitris DX and Avid DS, which are used during the online or finishing stage of post production. It also provides Pinnacle Studio and Avid Studio, which provide consumers and entry-level videographers with the ability to create professional-looking videos; broadcast newsroom graphics, ingest, play-to-air, and automation device control solutions that assist broadcasters as they bring programs from concept to air; and Avid ISIS shared storage system to store, share and manage large quantities of digital media assets. In addition, Avid Technology, Inc. offers Pro Tools digital audio software and workstation solutions that facilitate the audio production process; a range of complementary open audio and video control surfaces and consoles; ICON system for tactile control of Pro Tools software and hardware; VENUE, a family of console products for mixing audio for live sound reinforcement. Further, the company provides Fast Track recording interface products to deliver audio quality plus hands-on controls; MIDI keyboards/controllers and digital pianos, which are used by musicians in the recording studio and for live performances; speakers for use with desktop computer systems and in studios; and Sibelius-branded software allows users to create, edit, and publish musical scores. Additionally, it also offers project management, installation, integration, planning, training, and support services. The company was founded in 1987 and is headquartered in Bu rlington, Massachusetts.

Advisors’ Opinion:

  • [By Monica Gerson]

    Avid Technology, Inc. (NASDAQ: AVID) is estimated to post its quarterly earnings at $0.36 per share on revenue of $144.02 million.

    Consolidated Water Co. Ltd. (NASDAQ: CWCO) is expected to post its quarterly earnings at $0.11 per share on revenue of $15.15 million.