Shares of Deere (DE) have jumped nearly 15% today after the maker of agriculture machinery beat earnings forecasts and announced cost cuts. The announcement led to one of my favorite ratings changes of all time: S&P Global Market Intelligence’s Jim Corridore upgraded Deere to Sell from Strong Sell:
We raise our 12-month target price to $80 from $70, 20X our FY 17 (Oct.) EPS estimate of $4.00 (unchanged today), well above Deere’s ten year average and above peers. We raise our FY 16 EPS estimate to $4.51 from $4.11 after Deere July-Qtr. EPS of $1.55 vs. $1.53 beat our $1.11 estimate. Revenues were worse than we expected, but Deere doing a great job cutting costs. EPS comparisons benefited from a 5.5% lower diluted share count. With end market conditions likely to remain unfavorable into calendar 2017, and given high valuation relative to peers and historic norms we remain negative.
Hot Safest Companies To Own In Right Now: DRDGOLD Limited(DRD)
DRDGOLD Limited, incorporated on February 16, 2015, is a surface gold tailings retreatment company. The Company operates in the central Witwatersrand (Wits) basin in Gauteng province and recovers gold from tailings. Ergo Mining Proprietary Limited (Ergo) is the Company’s operating entity. Ergo is a surface retreatment operator. Ergo’s assets cover an area approximately 62 kilometers from east to west and around 25 kilometers from north to south. The Company operates approximately two metallurgical plants, two milling and pump stations, a network of pipelines and the Brakpan tailings facility (BTF).
The Ergo plant has a total retreatment capacity of 1.8 Million tons per month. The Company’s product is dore bars. Ergo is owned by Ergo Mining Operations Proprietary Limited (EMO). The Company extracts gold through a combination of flotation, milling, carbon-in-pulp (CIP) and carbon- in-leach (CIL) processes. As of 30 June, 2015, the Company produced approximately 150,145 ounces of gold. The slime is dislodged and mixed with water and the resulting slurry is pumped to a metallurgical treatment plant for processing. The Crown and City Deep milling and pump stations partly process approximately 600 thousand tons per month. The Knights satellite plant processes approximately 200,000 to 300,000 thousand tons per month from various sites.
- [By Lisa Levin]
In trading on Wednesday, basic materials shares fell by 1.27 percent. Meanwhile, top losers in the sector included McEwen Mining Inc (NYSE: MUX), down 12 percent, and DRDGOLD Ltd. (ADR) (NYSE: DRD), down 7 percent.
Hot Safest Companies To Own In Right Now: Mallinckrodt plc(MNK)
Mallinckrodt public limited company develops, manufactures, markets, and distributes specialty pharmaceutical and biopharmaceutical products, and nuclear imaging agents in the United States, Europe, the Middle East, Africa, and internationally. The companys Specialty Brands segment markets branded pharmaceutical and biopharmaceutical products for autoimmune and rare diseases; immunotherapy and neonatal respiratory critical care therapies; and central nervous system drugs. This segment offers Acthar, an injectable biopharmaceutical drug for various indications, such as neurology, rheumatology, nephrology, and pulmonology; Ofirmev, an intravenous formulation of acetaminophen for pain management; Inomax for inhalation; Therakos, an immunotherapy treatment platform; and Exalgo, a form of hydromorphone. Its Specialty Generics segment provides specialty generic pharmaceuticals and active pharmaceutical ingredients (APIs) consistin g of hydrocodone and hydrocodone-containing tablets; oxycodone and oxycodone-containing tablets; methylphenidate HCl extended-release tablets; and other controlled substances, including acetaminophen products. The companys Nuclear Imaging segment offers Ultra-Technekow DTE, a Tc-99m radioisotope generator; and Octreoscan, a molecular imaging agent for the localization of primary and metastatic neuroendocrine tumors. Mallinckrodt public limited company markets its products to physicians, pharmacists, pharmacy buyers, hospital procurement departments, ambulatory surgical centers, specialty pharmacies, radiologists, and radiology technicians through wholesale drug and specialty pharmaceutical distributors, retail pharmacy chains, hospital networks, ambulatory surgical centers, and governmental agencies. It also sells and distributes APIs directly or through distributors to other pharmaceutical companies; and markets and distributes nuclear imaging products to radio-pharmacies and hospitals. The company is based in Chesterfield, the Un! ited Kingdom.
- [By Ben Levisohn]
Specialty pharmaceuticals Shire (SHPG) and Mallinckrodt (MNK) soared today following their better-than-expected earnings, while Morgan Stanley worried about Valeant Pharmaceutical International’s (VRX) ability to sell its unwanted assets.
- [By Ben Levisohn]
Endos ’16 guidance re-basing, which comes afterPerrigo (MP) provided a similar rebasing (4/25), may provide read-through for companies with high exposure to (1) significant 2014-15 US generic price hikes; (2) disproportionately high 2015 generic gross margins another indicator of price and tough Y/Y comparable. While we expect the broader spec pharma group to trade down on theEndo (MP) print, we see the most direct read-through toAkorn (MP),Perrigo (MP) and TEVA (OP), moderate read-through to Allergan (AGN) (OP) and Mallinckrodt (MNK) (OP) and limited read-through to Mylan (MYL) (OP) and Sandoz who have already reported. Our sector view is that generic price deflation will be most acute in pockets of the market, mainly opioids and one-off niche alternative dosage products while the bigger diversified players seem relatively insulated and 1Q results for Sandoz andMylan provide some support that view.
Top Industrial Disributor Stocks To Invest In Right Now: GAIN Capital Holdings, Inc.(GCAP)
GAIN Capital Holdings, Inc. provides trading services and solutions to retail and institutional customers worldwide. The company operates in three segments: Retail, Institutional, and Futures. It specializes in over-the-counter (OTC) and exchange-traded markets. The company offers access to a range of financial products, including spot foreign exchange (forex), precious metals trading, and contracts for differences (CFD) on currencies, commodities, indices, individual equities, bonds, and interest rate products; and spread bets and OTC options on forex, as well as supports the trading of exchange-traded futures and options. It offers services to retail customers through FOREX.com and Cityindex.com, as well as through introducing brokers and white label partners. The company also provides agency execution services; and access to markets and self-directed trading in foreign exchange, commodities, equities, options, and futures t o institutional customers through an electronic communications network, as well as offers touch services. In addition, it operates GTX platform, an electronic communications network that provides liquidity in spot and forward foreign exchange and precious metals to buy-side and sell-side firms, including banks, brokers, hedge funds, commodity trading advisors, and asset managers. Further, the company provides execution and risk management services for exchange-traded futures and futures options on U.S. and European futures and options exchanges. As of December 31, 2015, it had 173,738 funded retail accounts. GAIN Capital Holdings, Inc. was founded in 1999 and is headquartered in Bedminster, New Jersey.
- [By Monica Gerson]
Gain Capital Holdings Inc (NYSE: GCAP) is estimated to post its quarterly earnings at $0.07 per share on revenue of $100.39 million.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
Hot Safest Companies To Own In Right Now: Rovi Corporation(ROVI)
Rovi Corporation provides digital entertainment technology solutions for the discovery and management of entertainment content. It offers interactive program guides; embedded licensing technologies, such as recommendations and search capability; media recognition technologies; licensing of the company?s database of descriptive information about television, movie, music, books, and game content; and analog content protection technologies and services. The company?s interactive program guides technology is an interactive listing of television or video program information that enables viewers to navigate through, sort, select, and schedule video programming for viewing and recording. The company also provides video delivery solutions, such as compression-decompression technology (codec) to enable distribution of content across the Internet and through recordable media in physical or streamed forms; and media manager, a personal computer application enabling consumers to man a ge personal media files, including music, photos, and video files. In addition, it offers digital copy solution for consumer electronics devices and PC software applications; the Rovi Entertainment Store video delivery solutions; content authoring solutions; and advertising solutions. Rovi Corporation primarily serves companies in the consumer electronics, cable and satellite, entertainment, and online distribution markets. The company was formerly known as Macrovision Solutions Corporation and changed its name to Rovi Corporation in July 2009. Rovi Corporation was founded in 1983 and is headquartered in Santa Clara, California.
- [By Lisa Levin]
TiVo Inc. (NASDAQ: TIVO) shares were also up, gaining 20 percent to $9.22. The New York Times reported that Tivo and Rovi Corporation (NASDAQ: ROVI) are in merger talks.