Morgan Stanley’s Matthew Harrison expects Gilead Sciences (GILD) to disappoint investors when it releases earnings on July 25. He explains why:
Gilead will announce its 2Q Earnings and hold its conference call on Monday, July 25…Gilead is driven by Hepatitis C virus and HIV sales. We see HCV sales ~$200M below consensus due to continued pricing pressure globally and lower market share in Europe. The pricing pressure comes from a more negative mix shift in the US from greater Veterans Administration volumes (discounts ~75%) and 8 week usage which is 33% less than a full course of drug, a full quarter of the 32% price cut in Japan vs. one month in 1Q16, and a negative mix shift in Europe to lower-priced countries in Southern Europe. Lower market share in Europe is a result of aggressive price competition from AbbVie (ABBV)…
Hot Prefered Companies To Own For 2016: The Blackstone Group L.P.(BX)
The Blackstone Group L.P. (Blackstone), incorporated on March 12, 2007, is a global alternative asset manager. The Company’s alternative asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds and other multi-asset class strategies. The Company’s segments include Private Equity, Real Estate, Hedge Fund Solutions and Credit.
The Company’s Private Equity segment focuses on identifying, managing and creating lasting value for its investors. Its Private Equity segment includes corporate private equity funds; tactical opportunities business, which pursues a global multi-asset class approach to investing in illiquid assets focused on timely opportunities that fall outside the Company’s other alternative fund strategies; strategic partners, which is the Company’s secondary private fund of funds business, and Blackstone Total Alternati ves Solution (BTAS), which is an investment program for eligible high net worth investors. The Company has raised approximately seven general private equity funds, as well as over three specialized corporate private equity funds focusing on energy and communications-related investments.
The Company manages various global, European and Asian focused opportunistic real estate funds, several real estate debt investment funds, a publicly traded real estate investment trust (BXMT), and core and real estate investments. Its real estate opportunity funds are diversified geographically and have made investments in lodging, office buildings, shopping centers, residential and a variety of real estate operating companies. Its debt investment funds target high yield real estate debt related investment opportunities in the public and private markets in the United States and Europe. The Company’s core and funds target stabilized office, multifamily, i ndustrial and retail assets across the world. The Company re! fers to its real estate opportunistic funds as Blackstone Real Estate Partners (BREP) funds, its real estate debt investment funds as Blackstone Real Estate Debt Strategies (BREDS) funds and its core and investment funds as Blackstone Property Partners (BPP) funds.
Hedge Fund Solutions
The Company’s Hedge Fund Solutions group comprises Blackstone Alternative Asset Management (BAAM). It manages a range of commingled funds of hedge funds and customized vehicles. BAAM’s businesses also includes investment platforms that seed new hedge fund talent, purchase ownership interests in established hedge funds, invest in special situation opportunities, create alternative solutions in regulated structures, and trade long and short public equities.
The Company’s credit segment consists of GSO Capital Partners LP (GSO). The funds the Company manages or sub-advises include senior credit-focused funds, distressed debt funds, mezzan ine funds and general credit-focused funds concentrated in the leveraged finance marketplace. GSO also manages separately managed accounts and registered investment companies, including business development companies. The Company’s vehicles have investment portfolios comprising loans and securities spread across the capital structure, including senior debt, subordinated debt, preferred stock and common equity.
- [By Ben Levisohn]
Shares ofBlackstone(BX) have gained 3.4% to $23.61 in pre-open trading after it was raised to Buy from Neutral at Merrill Lynch.
Huntsman (HUN) has gained 2.5% to $19.75 after the chemical company’s shares were raised to Buy from Hold at Jefferies.
- [By Jim Powell]
Steve Halpern: Among your recent recommendations is a housing related play called the Blackstone Group (BX), a private equity firm. Could you explain how that’s related to the housing sector?
Hot Prefered Companies To Own For 2016: CGG(CGG)
CGG SA (CGG), incorporated on March 30, 1984, is a manufacturer of geophysical equipment. The Company is a provider of marine, land and airborne data acquisition services. The Company is a provider of a range of other geoscience services, including data imaging, seismic data characterization, geoscience and petroleum engineering consulting services, and collecting, developing and licensing geological data. The Company’s clients include independent, international and national oil companies. The Company’s business lines include Equipment, Marine Acquisition, Land Acquisition, Multi-Physics, Multi-Client and New Ventures, Subsurface Imaging, GeoSoftware and GeoConsulting. The Company operates through four segments: Contractual Data Acquisition; Geology, Geophysics & Reservoir (GGR); Equipment, and Non-Operated Resources. The Contractual Data Acquisition includes marine, and land and multi-physics. The GGR segment includes the Multi-client business line (development and manage ment of seismic surveys that it undertakes and licenses to a range of clients on a non-exclusive basis) and the Subsurface Imaging and Reservoir business lines (processing and imaging of geophysical data, reservoir characterization, geophysical consulting and software services, geological data library and data management solutions). The Equipment segment consists of its manufacturing and sales activities for seismic equipment used for data acquisition, both on land and marine. The Non-Operated Resources segment consists of the costs of the non-operated marine resources, as well as all the costs of its Transformation Plan.
The Company’s Contractual Data Acquisition activity includes its geophysical acquisition services offering, including land, marine, airborne and seabed. The Company provides a range of marine seismic two dimension (2D) and three dimension (3D) services, focusing on the Gulf of Mexico, the North Sea, West Africa and Brazil, as well as the Asia P acific region. The Company also delivers marine seismic cont! ract data acquisition in frontier areas. The Company operates a fleet of over eight 3D high capacity vessels, a source vessels and a 3D/2D vessel of lower capacity. Its Oceanic Sirius, Oceanic Vega, Geo Caspian, Oceanic Endeavour, CGG Alize, Oceanic Champion, Viking Vision and Geo Celtic, can deploy approximately 10 streamers simultaneously. Its 3D high capacity vessels include Sentinel solid streamers, which provide acquiring surveys in tougher sea conditions, managing the frequency content and signal-to-noise ratio of the recorded data. The Company’s vessels deploy BroadSeis, which is its broadband marine solution.
The Company’s Land Data Acquisition business line is principally focused on the acquisition and onsite processing of seismic data acquired on land areas. The Multi-Physics business line acquisition is principally focused on the acquisition, processing and interpretation of airborne geophysical data on land or offshore, across the world, and on provi ding marine gravity and magnetic acquisition services onboard seismic vessels or independently, as well as the processing and interpretation of such data. Its activities are conducted out of operational centers located in Canada, Brazil, South Africa and Australia. Airborne activity includes the collection, processing and interpretation of data related to the earth’s surface and the soils and rocks beneath, and provides advice based on the results to clients in the mineral, oil and gas, governmental, engineering and environmental management sectors. It acquires electromagnetic, magnetic, radiometric and gravity data using fixed-wing airplanes and helicopter platforms. The Company also provides in-house acquisition and data processing of marine gravity and bathymetry in conjunction with seismic surveys or on a stand-alone basis. It also offers advanced geophysical data processing, interpretation and consulting services in order to provide integrated services for its natural r esource sector clients.
The Company’s GGR segme! nt engage! s in the activities assisting its clients in identifying their exploration targets and characterizing their reservoirs. The Company is engaged in developing and licensing multi-client seismic surveys; processing seismic data; selling seismic data processing and reservoir characterization software (under the geovation, Hampson-Russell, Jason, Insight Earth and Velpro brands); providing geoscience and petroleum engineering consulting services; collecting, developing and licensing geological data, and providing data management services and software to its clients. The Data Management Services (DMS) is a global business providing individual and integrated services in all areas of data asset management and data transformation to clients in or associated with the petroleum business, such as agencies maintaining government petroleum data repositories. The Multi-Client and New Ventures (MCNV) business line utilizes the resources of its other business lines, as well as those of sub-c ontractors to acquire and process seismic data for itself and license that data to its clients. Subsurface Imaging and Reservoir (SIR) conducts its seismic imaging operations out of over seven international centers located in Houston (the United States), Crawley (England), Massy (France), Singapore, Rio (Brazil), Oslo (Norway) and Calgary (Canada) and from over 20 regional and local centers. SIR also sells seismic data processing software, under the geovation brand and sells software for reservoir characterization, interpretation and modeling under the Hampson-Russell, Jason, Insight Earth and Velpro brands.
The Company conducts its equipment development and production operations through Sercel S.A. (Sercel) and its subsidiaries. Sercel is engaged in the development and production of seismic equipment in the land and marine seismic markets. Sercel sells its equipment and offers customer support services, including training across the world. It relates to a range of geophysical equipment for seismic data acquisition, incl! uding sei! smic recording equipment, software and seismic sources either for land (vibrators) or for marine (air guns). Sercel also supplies its clients with integrated solutions. The Company’s product, 428XL, is approximately 400 product series. Its products also include 508XT. Sercel also offers vibroseismic vehicles used as seismic source in land and for vibrator electronic systems VE 464.
The Company competes with PGS, WesternGeco, Polarcus, BGP, Sinopec, Geokinetics, WesternGeco, Global Geophysical Services, Fairfield, TGS, Geospace Technologies Corporation and Ion Geophysical Inc.
- [By Jonas Elmerraji]
First up is French oil service firm CGG Veritas (CGG)
. The Eurozone-based energy stock hasn’t exactly posted blockbuster performance in 2013, but investors who ignore CGG for the final stretch of the year could be making a big mistake. That’s because of a bullish technical pattern that’s emerging in shares right now.
CGG spent most of the last eight months looking anything but bullish. But an ascending triangle pattern is changing that. The pattern is formed by horizontal resistance to the upside at $26, and uptrending support to the below shares. Basically, as CGG bounces in between those two technical levels, it’s getting squeezed closer and closer to a breakout above $26. When that happens, traders have a buy signal.
The ascending triangle pattern in CGG Veritas isn’t exactly textbook. That’s because the setup is forming at the bottom of a downtrend, rather than in the middle of an uptrend but it’s a mistake to get caught up on the textbook pictures of what trading patterns are supposed to look like. On a move through $26, the trading implications are just as actionable.
Top 10 Media Companies To Watch In Right Now: Navidea Biopharmaceuticals, Inc.(NAVB)
Navidea Biopharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of precision immunodiagnostic agents and immunotherapeutics. The company offers Lymphoseek, a receptor-targeted small-molecule radiopharmaceutical used in the evaluation of lymphatic basins that may have cancer involvement in patients; and Manocept platform to target the CD206 mannose receptor expressed on activated macrophages. Its neurological development programs include NAV4694, an Fluorine-18 labeled positron emission tomography imaging agent, which is used as an aid the imaging and evaluation of patients with signs or symptoms of Alzheimers disease and mild cognitive impairment; and NAV5001, an Iodine-123 labeled single photon emission computed tomography imaging agent that is used as an aid in the diagnosis of Parkinsons disease and other movement disorders with potential use as a diagnostic aid in dementi a. Navidea Biopharmaceuticals, Inc. has research and development agreements with University of California. The company was formerly known as Neoprobe Corporation and changed its name to Navidea Biopharmaceuticals, Inc. in January 2012. Navidea Biopharmaceuticals, Inc. was founded in 1983 and is headquartered in Dublin, Ohio.
- [By Monica Gerson]
Navidea Biopharmaceuticals Inc (NYSE: NAVB) shares rose 8.80 percent to $0.950 in pre-market trading as the company reported an unsolicited offer to refinance CRG loan.
Hot Prefered Companies To Own For 2016: comScore Inc.(SCOR)
comScore, Inc. provides a range of digital analytics solutions primarily in the United States, Europe, and Canada. The company offers its customers with information regarding usage of their online properties and those of their competitors, coupled with information on consumer demographic characteristics, attitudes, lifestyles, and offline behavior solutions through its digital media measurement platforms. Its digital media measurement platforms consist of proprietary databases and a computational infrastructure that measures, analyzes, and reports on digital activity. The company also provides audience analytics tools that measure the size, behavior, and characteristics of Internet users on PCs, mobile devices, and tablets, as well as insight into online advertising; and advertising analytics products, such as AdEffx, Media Planner 2.0, and Campaign Essentials, which provide solutions for developing, executing, and evaluating online advertising campaigns, as well as valida ted campaign essentials that provide intelligence regarding validated impressions. In addition, it offers Web analytics products and solutions, as well as Web analytics platform that integrates data from multiple sources, including Web, mobile, video, and social media interactions; and mobile and network analytics products, such as comprehensive market intelligence and network solutions to mobile carriers with information on network optimization and capacity planning, customer experience, and market intelligence. The company serves Internet service providers, investment banks, media and digital agencies, consumer banks, wireless carriers, pharmaceutical makers, credit card issuers, and consumer packaged goods companies. comScore, Inc. was founded in 1999 and is headquartered in Reston, Virginia.
- [By Frank Pallotta]
“As counter-intuitive as it seems, opening a movie over Super Bowl weekend can actually be a smart move for studios,” said Paul Dergarabedian, senior media analyst for comScore (SCOR). “They can take advantage of the fact that audiences may want to strike a balance between staying home all afternoon on Sunday and wanting to get out of the house earlier in the weekend.”
- [By Lisa Levin]
Cyclical consumer goods & services shares gained by 0.25 percent in trading on Friday. Top gainers in the sector included Big Lots, Inc. (NYSE: BIG), Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA), and COMSCORE, Inc. (NASDAQ: SCOR).
Hot Prefered Companies To Own For 2016: PacWest Bancorp(PACW)
PacWest Bancorp, incorporated on March 24, 2008, is a bank holding company for Pacific Western Bank (the Bank). The Company is focused on relationship-based business banking to small, middle-market and venture-backed businesses. The Bank offers a range of loan and deposit products and services through approximately 80 branches located throughout the state of California. The Company provides commercial banking services, and deposit and treasury management services to small and middle-market businesses. It offers products and services under the brand names of Pacific Western, as well as its business groups, CapitalSource Inc. and Square 1 Bank. CapitalSource focuses on providing cash flow, asset-based, equipment and real estate loans and treasury management services to middle market businesses. Square 1 Bank focuses on providing a range of financial products to service entrepreneurial businesses and their venture capital and private equity investors. Square 1 Asset Managemen t, Inc., a subsidiary of the Bank, provides investment advisory and asset management services.
The Company conducts a range of commercial lending activities that includes real estate mortgage, real estate construction and land loans, and commercial and industrial (C&I) loans and leases. Its commercial real estate loans are secured by a range of property types. Its C&I loan offerings are diverse and include various asset-secured loans, equipment-secured loans and leases, cash flow loans (leveraged loans) to finance business acquisitions and recapitalizations, and venture loans to support the operations of entrepreneurial companies during the various phases of their start-up operations. Its C&I loans include cash flow loans, asset-based loans, equipment-secured loans and leases, and venture capital loans. Its real estate lending activities focuses on loans to professional developers and real estate investors for the acquisition, ref inancing and construction of commercial real estate. Its con! sumer loans include personal loans, auto loans, home equity lines of credit, revolving lines of credit, other loans made by banks to individual borrowers, and purchased participation interests in student loans originated and serviced by a third-party lender. The Company’s total loans are approximately $14.48 billion.
The Company’s investment securities are classified as securities available-for-sale. The Company’s investment portfolio consists of obligations of states and political subdivisions (municipal securities), the United States Government agency obligations, and government-sponsored enterprise (GSE) obligations. The Company owns approximately $3.6 billion of investment securities available-for-sale.
Sources of Funds
The Company’s main source of funds to support its revenue-generating assets and to provide a source of low-cost funds and deposit-related fee income are deposits. The Company offers deposit products to businesses and other customers with a range of rates and terms, including demand, money market and time deposits. It also provides international banking services, multi-state deposit services, asset management services, as well as product offerings through other correspondent banks. The Company’s total deposits consist of approximately $10.6 billion in core deposits, approximately $4.2 billion in time deposits and over $0.9 billion in brokered non-maturity deposits. The Company borrows funds on a long-term, short-term or overnight basis from the Federal Home Loan Banks (FHLB), the Federal Reserve Bank of San Francisco (FRBSF) or other financial institutions.
- [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.