Remember when companies used to split their stock to keep individual shares affordable? No longer. Credit Suisse strategistsAna Avramovic andVictor Lin note that Church & Dwight (CHD) upcoming stock split will be just the fourth by an S&P 500 stock this year:
路 Stock splits have nearly dried up, at least among large-cap companies.
路 The split of CHD on Friday will be only the 4th of the year, which is the lowest in at least 20 years, excepting the nadir of the crisis in 2009.
路 The consequence of a lack of stock splits is that share prices have risen to all-time highs. The average price of an S&P stock is now about $87. And rising share prices generally mean wider spreads in cents, less posted liquidity, lower volume, and higher odd lot rates.
路 Generally, we recommend that traders should be more aggressive with higher-priced stocks since the midpoint will likely be more volatile and being passive will incur additional risk.
Shares of Church & Dwight have risen 0.8% to $99.85 at 3 p.m. today, while the S&P 500 has gained 0.6% to 2,181.33.
Hot Rising Stocks To Own For 2017: Google Inc.(GOOG)
Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google?s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers And roid, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.
- [By Jim Lowell, Partner and Chief Investment Strategist, Adviser Investments]
If you look at the kinds of holdings he has now—Google (GOOG), Apple (AAPL), Disney (DIS), Coca Cola (KO); these are hardly overlooked or unloved names, but when he bought them, he bought them on the cheap and they have certainly contributed handsomely to his significant outperformance.
Hot Rising Stocks To Own For 2017: Smith & Wesson Holding Corporation(SWHC)
Smith & Wesson Holding Corporation manufactures and sells firearm products in the United States and internationally. The company operates in two segments, firearms and accessories. It offers handguns, including revolvers and pistols; long guns, such as sporting, bolt action, and single shot rifles; hunting rifles; black powder firearms; handcuffs and restraints; and firearm-related products and accessories. The company sells its products under the Smith & Wesson, M&P, Thompson/Center Arms, Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies, Frankford Arsenal Reloading Tools, Lockdown Vault Accessories, Hooyman Premium Tree Saws, BOG-POD, and Golden Rod Moisture Control brands. It also provides metal processing and finishing services comprising tooling, forging, heat treating, finishing, plating, plastic injection molding, and engineering support services to third-party customers; and licensing of tra demarks to third parties. The company serves gun enthusiasts; collectors; hunters; sportsmen; competitive shooters; individuals desiring home and personal protection; law enforcement and security agencies and officers; and military agencies. Smith & Wesson Holding Corporation sells its products through distributors; federal, state, and municipal law enforcement agencies and officers; government and military agencies; businesses; retailers; and consumers. It also operates Websites; and an online retail store that sells hunting and shooting accessories, branded products, apparel, and related shooting supplies. The company was founded in 1852 and is based in Springfield, Massachusetts.
- [By Ben Levisohn]
Shares of Smith & Wesson (SWHC) are soaring after the gun maker beat earnings forecasts and provided optimistic guidance. Wunderlich’s Rommel Dionisio has the details:
Smith & Wesson (SWHC) reported another quarterly beat in 4Q, and surprisingly for a company which has recently under-promised and over-delivered to a significant degree, introduced initial FY17 and 1Q guidance well above current consensus forecasts. Successful recent new firearm product introductions, impressive growth in the recently acquired accessories segment, and stronger than expected gross margin drove 4Q upside, and these factors carry solid fundamental momentum into FY17. Especially given important near-term catalysts, we reiterate our Buy rating and maintain our price target of $32, derived by applying a trailing-year peer average EV/EBITDA multiple of 10x on current years estimates.
What are those catalysts you might ask? Dionisio continues:
We foresee two potential near-term catalysts for the stock. First, the U.S. Army is expected to select three finalists for its landmark handgun contract sometime around August, and we view S&W as the potential front-runner for this contract. Second, the firearms market could see another re-acceleration in demand trends in response to last weeks incident in Orlando, similar to the sharp surge in demand, particularly in handguns, seen just after the Paris and San Bernadino incidents late last year.
Wedbush analyst James Hardiman agrees:
Smith & Wesson shares should benefit from not only a sizeable 4Q beat but also a view among investors that the solid guidance given on Thursday is beatable given what is assumed to be a surge in demand in coming months following the Orlando tragedy. Beyond a short term bump in these shares, however, SWHC faces exceedingly difficult comparisons, and so investors will be watching closely beyond a strong 1Q for signs of sustainable momentum durin
Top 5 Bank Stocks To Buy For 2017: Inovio Pharmaceuticals, Inc.(INO)
Inovio Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops active DNA immunotherapies and vaccines in combination with proprietary electroporation delivery devices to prevent and treat cancers and infectious diseases. Its SynCon immunotherapy design has the ability to break the immune systems tolerance of cancerous cells; and SynCon product design is also intended to facilitate cross-strain protection against known, as well as new unmatched strains of pathogens, such as influenza. It has completed, current or planned clinical programs of its proprietary SynCon immunotherapies for HPV-caused pre-cancers and cancers, influenza, prostate cancer, breast/lung/pancreatic cancer, hepatitis C virus, hepatitis B virus, HIV, Ebola, Middle East Respiratory Syndrome, and Zika virus. The company has collaborative development agreements with GeneOne Life Sciences to co-develop an Ebola vaccine through Phase I clini cal trials; and The Wistar Institute for preventive and therapeutic DNA-based immunotherapy applications, as well as products for cancers and infectious diseases. Inovio Pharmaceuticals, Inc. was founded in 1979 and is headquartered in Plymouth Meeting, Pennsylvania.
- [By Ben Levisohn]
Shares of Inovio Pharmaceuticals(INO) are climbing today after the biotech company announced that it would begin testing a Zika vaccine in Puerto Rico. Maxim’sJason McCarthy andJason Kolbert have the details:
CREDIT: Alex Wild Published Credit: Alex Wild Alex Wild
Inovio announced the initiation of a small clinical study (N=160) of its Zika vaccine, GLS-5700 (being developed with GeneOne Life Sciences), in Puerto Rico. It is estimated by the CDC that the Zika virus could infect more than 25% of the population of Puerto Rico by YE16.The study will evaluate safety, immunogenicity and early signs of efficacy in preventing Zika infection. Data are expected in 2017, and if positive, Inovio will discuss with regulators the best path forward.
In addition, the phase I study of GLS-5700 (N=40) in the U.S. and Canada, which is the first in-human Zika vaccine study, is now fully enrolled. Data evaluating safety and immunogenicity are expected by YE16.
Conclusion. With the Zika virus spreading, including to the U.S., there remains an urgent need for a vaccine. Inovio continues to demonstrate that the company’s DNA-based vaccine approach is safe and can rapidly transition to human studies.
Shares of Inovio Pharmaceuticalshave gained 4.3% to $9.24 at 2:50 p.m. today, while the iShares Nasdaq Biotechnology ETF (IBB) has dipped 0.3% to $284.29.