There's no need to worry yet. But investors should start keeping an eye out for bears. Let me explain… Bear markets start with three common conditions… 1. A sudden, sharp rise in interest rates. 2. A peak in margin debt (the amount of money that investors borrow to buy stocks). 3. A dip in the S&P 500 monthly chart to below its 20-month exponential moving average (EMA). I wrote about this in September 2015, when it looked like stocks were rolling over into a bear market. These conditions don't always trigger a bear market. But a bear market has never started without these three things happening.
penny stock trader: Jacobs Engineering Group Inc.(JEC)
- [By Ben Levisohn]
Lee offers 22 stocks that could benefit from the correlation trade: Western Digital (WDC), Xerox (XRX), First Solar, Ford Motor, Best Buy (BBY), PulteGroup (PHM), AutoNation (AN), Textron (TXT), Jacobs Engineering Group (JEC), Mosaic, BB&T (BBT), Fifth Third Bancorp (FITB),Loews (L), Regions Financial (RF), KeyCorp (KEY), Comerica (CMA), Leucadia National (LUK), Zions Bancorp (ZION), Valero Energy (VLO), Marathon Oil, Cardinal Health (CAH), and Pepco Holdings (POM).
penny stock trader: Versar, Inc.(VSR)
- [By Lisa Levin]
Shares of Versar Inc. (NYSE: VSR) were down 36 percent to $1.61. Versar reported a Q3 loss of $1.34 per share on revenue of $36.5 million.
Breitburn Energy Partners LP (NASDAQ: BBEP) was down, falling around 70 percent to $0.0580 as the company filed for Chapter 11 bankruptcy protection.
penny stock trader: CareTrust REIT, Inc.(CTRE)
- [By Monica Gerson]
Caretrust REIT Inc (NASDAQ: CTRE) is estimated to post its quarterly earnings at $0.26 per share on revenue of $22.21 million.
China Lodging Group, Ltd (ADR) (NASDAQ: HTHT) is projected to post its quarterly earnings at $0.41 per share on revenue of $1.39 billion.
penny stock trader: Pinnacle Entertainment Inc.(PNK)
- [By Ben Levisohn]
Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.
First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:
When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.
Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:
With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.
He also likes Wynn Resorts (WYNN), despite its 34% gain.Santarelli writes:
As for WYNN, we believe near-term estimates continue to take a back seat to capital return
penny stock trader: Mead Johnson Nutrition Company(MJN)
- [By Michael Flannelly]
On Tuesday, JP Morgan analysts upgraded children’s nutrition company Mead Johnson Nutrition (MJN), as they believe the company’s top line growth should be valued more highly than the possible cost headwinds and further Chinese regulations.
The analysts upgraded MJN from “Neutral” to “Overweight” and see shares reaching $88. This price target suggests a 16% upside to the stock’s Monday closing price of $76.11.
Mead Johnson Nutrition shares were up 85 cents, or 1.12%, during morning trading on Tuesday. The stock is up 16.71% year-to-date.
penny stock trader: Anadarko Petroleum Corporation(APC)
- [By Matthew DiLallo]
While crude prices stumbled into 2016, they found their footing by mid-year and roared back to life, ending the year up about 42%. Those rising prices lifted most oil stocks. However, a handful of large-cap oil stocks rose above the crowd by outperforming crude’s rally. Those top-tier performers wereContinental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD), and Cimarex Energy (NYSE:XEC):
- [By Matthew DiLallo]
Sanchez Energy’s stock has continued to run higher in 2017 and is up nearly 50% since the start of the year. Fueling that surge is the announcement that the company found an exceptional place to put its liquidity to work. In mid-January, the company unveiled a strategic partnership with a private equity giant, Blackstone Group (NYSE:BX), to acquire Anadarko Petroleum’s (NYSE:APC) Eagle Ford shale assets for $2.3 billion. Under the terms of the deal, Sanchez and Blackstone entered a 50-50 partnership to own the Anadarko assets, which consist of 155,000 net acres that currently produce 67,000 BOE/D and hold more than 4,000 drilling locations that are economic at current prices. Sanchez will finance its share of the deal with cash on hand, a new bank lending arrangement, and a preferred equity issuance to Blackstone’s credit arm.
- [By WWW.KIPLINGER.COM]
One grueling oil rout later and Freeport continues to dig out from under the mess. That digging included a recent asset sale to Anadarko Petroleum Corporation (APC). APC managed to pick up some really awesome assets for around $2 billion that FCX just couldnt make work. That infusion of cash was designed to help pay down the debt.
- [By Lisa Levin]
Shares of Sanchez Energy Corp (NYSE: SN) got a boost, shooting up 28 percent to $11.11. Anadarko Petroleum Corporation (NYSE: APC) announced the sale of Eagleford Shale assets to Sanchez Energy and Blackstone Energy Partners for $2.3 billion.
- [By Dan Caplinger]
Sanchez Energy soared 29% after the energy company reported that it had entered into a strategic partnership with private equity giant Blackstone Energy Partners. The 50/50 venture was formed to purchase a working interest in about 318,000 acres in the lucrative Eagle Ford area of Texas from peer Anadarko Petroleum (NYSE:APC), with the partnership paying $2.3 billion for the assets. The Anadarko property is next to assets that Sanchez already works on in the Eagle Ford, and current production will provide immediate cash flow while extensive proved reserves and resource potential show plenty of future promise.
- [By Ben Levisohn]
Beta Should Lead At The Start of A Rally: Best ideas in the first leg up: Marathon Oil, Devon Energy (DVN), Anadarko Petroleum (APC), and Continental Resources (CLR). If OPEC announces a cut, whether moderate or deep, we expect that in the initial move up, moderate value beta names, like Marathon Oil, Devon Energy, Anadarko Petroleum, andContinental Resources will lead.For a $5 increase in oil prices, we estimate 2017 cash flow per share would increase 12-18% for these stocks vs. the remainder of the group at 12%. Of these four, short interest is modest for all exceptContinental Resources at 25%, among the highest in our universe. Outperformance of these names should be driven by investors adding to long positions, not short covering.