Hot Value Stocks For 2018

The US financial sector has been on a solid run of late. Over the last 12 months the S&P 500 Financials Sector has returned 18.9% relative to the S&P 500 Index of 17.9%. Many analysts have formed the view that with the potential for higher market interest rates, this sector has a long runway ahead. So with this in mind I thought that it would be a good time to update my estimates of the intrinsic value of the 3 major diversified banks. Over a series of 4 articles I will value JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC) and Bank of America (NYSE: BAC). In this first article I will set the scene by reviewing the performance of the 3 banks over the last 10 years and compare their current performance to the Sector.

Size of the US Banking Loan Books

When I think about a main-street bank I immediately look at how its loan book has been performing. I think that the loan book is the key to the profitability of the bank. The loan book allows the bank to generate income both from the loan (interest income) and by servicing the loan (non-interest income).

Hot Value Stocks For 2018: Axsome Therapeutics, Inc.(AXSM)

Advisors’ Opinion:

  • [By William Romov]

    Currently trading at $4.85, Manhattan-based Axsome Therapeutics Inc. (Nasdaq: AXSM) makes drugs to treat depression, Alzheimer’s disease, and chronic pain.

  • [By Jim Robertson]

    On Tuesday, ourUnder the Radar Moversnewsletter suggested shorting small cap clinical-stage biopharmaceutical stock Axsome Therapeutics (NASDAQ: AXSM):

  • [By Paul Ausick]

    Axsome Therapeutics Inc. (NASDAQ: AXSM) traded down about 43% Tuesday and posted a new 52-week low of $3.20 after closing Monday at $5.55. The 52-week high is $6.45. Volume was about 3.8 million, about 19 times the daily average of around 220,000 shares. The company will stop a “futile” portion of a trial of its treatment for knee osteoarthritis.

  • [By Lisa Levin]

    Axsome Therapeutics Inc (NASDAQ: AXSM) shares dropped 18 percent to $3.62. Axsome Therapeutics priced 3.74 million shares at $3.74 per share.

    Shares of Canadian Solar Inc. (NASDAQ: CSIQ) were down around 11 percent to $12.10 after the company posted downbeat quarterly earnings and issued a weak forecast.

Hot Value Stocks For 2018: Computer Sciences Corporation(CSC)

Advisors’ Opinion:

  • [By R. Chandrasekaran]

    Some of the outperforming stocks:

    NVDIA Corp (NASDAQ: NVDA) trading up about 5.7 percent with a range between $69.50 and $71.72.
    Amazon.com, Inc. (NASDAQ: AMZN) is gaining about 4 percent. The stock ranged between $770.94 and $787.73.
    Computer Sciences Corporation (NYSE: CSC) is gaining about 3.3 percent with the stock trading between $56.10 and $58.01.
    Microsoft Corporation (NASDAQ: MSFT) is adding about 3 percent with the stock ranging $59.78-$60.52.
    Alphabet Inc (NASDAQ: GOOGL) is gaining about 2.9 percent with the stock trading between $792.90 and $805.
    Intel Corporation (NASDAQ: INTC) is adding approximately 2.9 percent with shares trading in the range of $34.15-$34.60.
    Cisco Systems, Inc. (NASDAQ: CSCO) is gaining about 2.8 percent as the stock traded between $30.61 and $31.05.
    Salesforce.com, inc. (NYSE: CRM) is adding about 2.8 percent with the shares traded in the range of $75.41-$77.00

  • [By Monica Gerson] Related CSC Earnings Scheduled For May 24, 2016 8 Stocks You Should Be Watching Today Computer Sciences' (CSC) CEO Mike Lawrie on Q4 2016 Results – Earnings Call Transcript (Seeking Alpha)
    Related Earnings Scheduled For May 24, 2016 8 Stocks You Should Be Watching Today Hewlett Packard Enterprise Announces Plans for Tax-Free Spin-Off and Merger of Enterprise … (GuruFocus)

    Some of the stocks that may grab investor focus today are:

Hot Value Stocks For 2018: Leading Brands Inc(LBIX)

Advisors’ Opinion:

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares shot up 66 percent to $2.49 following Q1 results. Leading Brands reported Q1 earnings of $0.10 per share on revenue of $3.033 million.

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares dropped 13 percent to $1.99 following Q2 results. Leading Brands posted Q2 EBITDAS of $0.00 per share, compared to $0.09 per share during the same period last year.

  • [By Lisa Levin]

    Leading Brands, Inc (USA) (NASDAQ: LBIX) shares were also up, gaining 145 percent to $3.31 on no formal news from company. The stock rallied 215 percent over Tuesday and Wednesday of this week amid trader speculation stock could be sympathy play on move higher in Helios & Matheson. However, Leading Brands shares sold off 27 percent on Thursday.