Tag Archives: TSLA

Top 10 Warren Buffett Stocks For 2019

Tim Melvin

Having $100 billion in leftover cash is never a bad thing… unless you happen to be the richest investor in the history of the world.

At last weekend’s Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) shareholder meeting – or Warren Buffett cult gathering, as I consider it – the Oracle of Omaha revealed that, even after buying 75 million more shares of Apple Inc. (Nasdaq: AAPL), he still has over $100 billion left in cash.

That’s about 20% of the total value of Berkshire, so it’s a bit of a problem for him.

As he explained to CNBC on Monday, there’s a lot of competition among private equity funds and other financial buyers for companies big enough to move the needle at Berkshire.

That’s not easy to do.

At the same time, neither is buying; prices are just not that attractive right now, and when it comes to spending Berkshire’s money, Buffett is notoriously selective.

Top 10 Warren Buffett Stocks For 2019: Nomura Holdings Inc ADR(NMR)

Advisors’ Opinion:

  • [By Max Byerly]

    Nomura Holdings Inc (NYSE:NMR) was the recipient of a significant increase in short interest in July. As of July 31st, there was short interest totalling 1,044,018 shares, an increase of 57.9% from the July 13th total of 661,211 shares. Based on an average trading volume of 289,934 shares, the days-to-cover ratio is currently 3.6 days.

  • [By Joseph Griffin]

    TheStreet downgraded shares of Nomura (NYSE:NMR) from a c rating to a d+ rating in a research note published on Friday morning.

    A number of other research analysts have also recently issued reports on NMR. Zacks Investment Research raised Nomura from a sell rating to a hold rating in a report on Wednesday, June 27th. ValuEngine raised Nomura from a sell rating to a hold rating in a report on Wednesday, June 20th. Nomura cut Nomura from a buy rating to an outperform rating in a report on Wednesday, May 2nd. Finally, Daiwa Capital Markets cut Nomura from an outperform rating to a neutral rating in a report on Wednesday, August 1st. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $6.50.

  • [By Max Byerly]

    Credit Suisse Group (NYSE: CS) and Nomura (NYSE:NMR) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

  • [By Joseph Griffin]

    Virtu Financial (NASDAQ: VIRT) and Nomura (NYSE:NMR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

  • [By Stephan Byrd]

    Numeraire (CURRENCY:NMR) traded 4.2% higher against the dollar during the 1-day period ending at 23:00 PM ET on August 16th. In the last seven days, Numeraire has traded down 17.7% against the dollar. One Numeraire token can currently be bought for approximately $6.43 or 0.00099985 BTC on popular cryptocurrency exchanges including DDEX, Bittrex and Upbit. Numeraire has a market capitalization of $8.67 million and approximately $71,501.00 worth of Numeraire was traded on exchanges in the last 24 hours.

Top 10 Warren Buffett Stocks For 2019: Acorn International, Inc.(ATV)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of Acorn International, Inc. (NYSE: ATV) got a boost, shooting up 15 percent to $28.6813 after the company declared a special one-time cash dividend of $14.97 per ADS.

  • [By Ethan Ryder]

    Here are some of the headlines that may have impacted Accern’s rankings:

    Get Acorn International alerts:

    Acorn International jumps 7% post Q2 results (seekingalpha.com) Acorn International, Inc. (ATV) CEO Jacob Fisch on Q2 2018 Results – Earnings Call Transcript (seekingalpha.com) Acorn International (ATV) Q2 Revenues Rise 39.4% (streetinsider.com) Acorn International Reports Financial Results for the Second Quarter and First Half of 2018 (finance.yahoo.com) Acorn International to Report Results for the Second Quarter of 2018 (finance.yahoo.com)

    ATV traded up $0.54 during trading on Friday, hitting $22.01. 50 shares of the company’s stock traded hands, compared to its average volume of 6,431. Acorn International has a 12-month low of $13.21 and a 12-month high of $38.86.

  • [By Lisa Levin] Gainers
    Melinta Therapeutics, Inc. (NASDAQ: MLNT) shares surged 20.6 percent to $6.39. WBB Securities upgraded Melinta Therapeutics from Hold to Speculative Buy.
    Shoe Carnival, Inc. (NASDAQ: SCVL) shares climbed 17.2 percent to $30.87 after the company reported upbeat quarterly earnings.
    Acorn International, Inc. (NYSE: ATV) shares rose 15.2 percent to $28.804 after the company declared a special one-time cash dividend of $14.97 per ADS.
    Foot Locker, Inc. (NYSE: FL) gained 15 percent to $53.35 after the company reported better-than-expected results for its first quarter.
    Sears Hometown and Outlet Stores, Inc. (NASDAQ: SHOS) surged 14.2 percent to $2.625.
    ArQule, Inc. (NASDAQ: ARQL) rose 13 percent to $5.12 after gaining 4.86 percent on Thursday.
    Quality Systems, Inc. (NASDAQ: QSII) gained 12.8 percent to $16.97 after the company posted better-than-expected FQ4 results.
    Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE: LOMA) shares rose 12 percent to $12.94.
    ArQule, Inc. (NASDAQ: ARQL) shares rose 12 percent to $5.07.
    Mirati Therapeutics, Inc. (NASDAQ: MRTX) climbed 11.4 percent to $43.50.
    Zai Lab Limited (NASDAQ: ZLAB) gained 11.3 percent to $24.7000.
    Zymeworks Inc. (NASDAQ: ZYME) rose 9.7 percent to $19.64.
    Park City Group, Inc. (NASDAQ: PCYG) climbed 9 percent to $7.90.
    Roku, Inc. (NASDAQ: ROKU) gained 7.9 percent to $38.82 after Citron reversed previously bearish position on the stock.
    Sears Holdings Corporation (NASDAQ: SHLD) shares jumped 7.3 percent to $3.55.
    Deckers Outdoor Corp (NYSE: DECK) rose 3.5 percent to $107.27 after reporting better-than-expected results for its fiscal fourth quarter.

    Check out these big penny stock gainers and losers

Top 10 Warren Buffett Stocks For 2019: Quad Graphics, Inc(QUAD)

Advisors’ Opinion:

  • [By ]

    Cramer was bearish on Chesapeake Energy (CHK) , Adaptimmune Therapeutics (ADAP) , Icahn Enterprises (IEP) , Bristol-Myers Squibb (BMY) , Quad/Graphics (QUAD) , Spectra Energy Partners (SEP) and L Brands (LB) .

  • [By ]

    Quad/Graphics (QUAD) : “They have a 6% yield but they have no growth. I’m taking a pass.”

    Spectra Energy Partners (SEP) : “People are worried about natural gas transit. I’m worried about that 9% yield.”

Top 10 Warren Buffett Stocks For 2019: The York Water Company(YORW)

Advisors’ Opinion:

  • [By Ethan Ryder]

    BidaskClub downgraded shares of York Water (NASDAQ:YORW) from a hold rating to a sell rating in a research report report published on Thursday.

    Separately, Hilliard Lyons raised shares of York Water from an underperform rating to a neutral rating in a research report on Thursday, March 8th.

  • [By Logan Wallace]

    York Water (NASDAQ:YORW) was upgraded by equities research analysts at BidaskClub from a “strong sell” rating to a “sell” rating in a research note issued to investors on Saturday.

Top 10 Warren Buffett Stocks For 2019: Nielsen N.V.(NLSN)

Advisors’ Opinion:

  • [By Joseph Griffin]

    These are some of the news stories that may have impacted Accern’s scoring:

    Get Nielsen alerts:

    Pivotal cuts Nielsen to Hold (seekingalpha.com) Nielsen (NLSN) Stock Rating Lowered by Pivotal Research (americanbankingnews.com) Nielsen Rolls Out Auto Cloud in Collaboration With J.D. Power (zacks.com) [$$] Nielsen Should Get a Break From the Market (finance.yahoo.com) Short Interest in Nielsen Holdings PLC (NLSN) Rises By 20.2% (americanbankingnews.com)

    Shares of NYSE:NLSN opened at $26.15 on Thursday. Nielsen has a 1 year low of $20.53 and a 1 year high of $42.15. The company has a market cap of $7.80 billion, a price-to-earnings ratio of 12.39, a price-to-earnings-growth ratio of 1.17 and a beta of 0.85. The company has a quick ratio of 1.19, a current ratio of 1.18 and a debt-to-equity ratio of 1.96.

  • [By Dan Caplinger]

    Monday was a generally down day on Wall Street, with major benchmarks giving up early-morning gains to finish modestly lower. Most market participants focused the bulk of their attention on deteriorating financial conditions in Turkey, with signs that the plunge in the value of the nation’s currency could have impacts across the globe. For instance, Argentina had to boost a key interest rate by 5 percentage points to 45% in order to defend its own currency, and in the U.S., financial stocks were generally under some pressure as investors tried to assess possible exposure if the Turkish crisis extends outward. Even with those difficulties, some companies had good news that sent their shares higher. Nielsen Holdings (NYSE:NLSN), Diebold Nixdorf (NYSE:DBD), and Antares Pharma (NASDAQ:ATRS) were among the best performers on the day. Here’s why they did so well.

  • [By Joseph Griffin]

    These are some of the news articles that may have effected Accern’s scoring:

    Get GGP alerts:

    Read This Before Trade: Facebook, Inc. (FB), GGP Inc. (GGP) (nmsunews.com) Ggp Inc (GGP)’s Weekly Performance of -0.90% Is Nothing to Write Home About (parkcitycaller.com) Is GGP Inc (NYSE:GGP) A Good Dividend Stock? (finance.yahoo.com) GGP (GGP) Downgraded by Zacks Investment Research to “Hold” (americanbankingnews.com) Dazzling Stocks: GGP Inc. (NYSE:GGP), Nielsen Holdings plc (NYSE:NLSN), AmerisourceBergen Corporation (NYSE … (thestreetpoint.com)

    GGP has been the subject of a number of recent research reports. Royal Bank of Canada restated a “buy” rating and set a $24.00 target price on shares of GGP in a research report on Monday, February 12th. Boenning Scattergood reissued a “buy” rating and issued a $35.00 target price on shares of GGP in a research note on Tuesday, March 27th. Mizuho raised GGP from a “neutral” rating to a “buy” rating and set a $24.00 target price for the company in a research note on Monday, March 19th. Zacks Investment Research upgraded GGP from a “hold” rating to a “buy” rating and set a $23.00 price target on the stock in a report on Wednesday, April 11th. Finally, Barclays cut their price target on GGP from $24.00 to $23.00 and set an “equal weight” rating on the stock in a report on Tuesday, January 30th. Three analysts have rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the company’s stock. GGP currently has an average rating of “Hold” and a consensus price target of $24.92.

  • [By Shane Hupp]

    Botty Investors LLC lifted its position in shares of Nielsen Holdings PLC (NYSE:NLSN) by 27.5% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 19,665 shares of the business services provider’s stock after buying an additional 4,245 shares during the quarter. Botty Investors LLC’s holdings in Nielsen were worth $625,000 at the end of the most recent quarter.

  • [By Max Byerly]

    Nielsen (NYSE:NLSN) was upgraded by Pivotal Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday, The Fly reports.

Top 10 Warren Buffett Stocks For 2019: Tronox Limited(TROX)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Hydrogenics (NASDAQ: HYGS) and Tronox (NYSE:TROX) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

  • [By Joseph Griffin]

    Wolverine Asset Management LLC acquired a new stake in Tronox Ltd (OTCMKTS:TROX) in the second quarter, HoldingsChannel.com reports. The firm acquired 27,200 shares of the basic materials company’s stock, valued at approximately $535,000.

  • [By Maxx Chatsko]

    One factor contributing to the awful start to life as a publicly traded company is simply timing. Venator Materials stock listed on public exchanges just in time to catch the last few months of a multiyear bonanza for titanium dioxide stocks. Shares of Kronos Worldwide, Chemours, and Tronox Ltd (NYSE:TROX) all jumped by triple digits in the three-year period ending in 2017. That helped to soften the blow from their double-digit declines suffered so far in 2018, but the newcomer has no such history to hang its hat on.

  • [By Shane Hupp]

    Tronox (OTCMKTS:TROX) had its target price lowered by equities research analysts at BMO Capital Markets to $13.00 in a report released on Tuesday, The Fly reports. The firm currently has an “outperform” rating on the basic materials company’s stock. BMO Capital Markets’ target price indicates a potential upside of 0.93% from the company’s previous close.

  • [By Max Byerly]

    Shares of Tronox Ltd (OTCMKTS:TROX) traded down 8.6% on Tuesday . The company traded as low as $10.95 and last traded at $11.09. 1,237,777 shares changed hands during trading, a decline of 7% from the average session volume of 1,334,449 shares. The stock had previously closed at $12.14.

  • [By Maxx Chatsko]

    Shares of Tronox (NYSE:TROX) jumped over 20% today after the company announced it had filed a joint motion with the U.S. Federal Trade Commission to delay the appeal schedule regarding the review of its proposed acquisition of Cristal. The move suggests the titanium dioxide manufacturer and the FTC are making progress toward a compromise over the acquisition of the Saudi-based chemicals producer, which has been under intense regulatory scrutiny for two years. 

Top 10 Warren Buffett Stocks For 2019: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Nicholas Rossolillo]

    Tesla’s (NASDAQ:TSLA) quarterly earnings calls break the mold — they’re actually interesting to listen to. The first quarter of 2018 didn’t disappoint as CEO Elon Musk talked about an unwieldy machine on the production line dubbed “fluffer bot,” used words like cockamamie, and created controversy by dismissing Wall Street analysts and turning Q&A over to YouTube channel operator Galileo Russell.

  • [By Chris Johnson]

    Today, we turn our attention to the other three – Alibaba Group Holding Ltd. (NYSE: BABA), Tesla Inc. (Nasdaq: TSLA), and Twitter Inc. (NYSE: TWTR).

  • [By Rich Smith]

    Again, this seems an ambitious schedule for a major urban public transportation project. Still, if Musk can pull it off, the Chicago Loop project could provide a financial boost to Musk’s most famous company, Tesla (NASDAQ:TSLA). TBC has confirmed that it will be buying the pods that will run passengers through Loop’s tunnels from Tesla. Depending on how many pods we’re talking about (and it could be a lot, to accommodate those 80 million O’Hare passengers), that could mean a sizable revenue boost for Tesla, albeit along with attendant capital investment costs to build the new type of vehicle.

  • [By Daniel Sparks]

    Shares of Tesla (NASDAQ:TSLA) were slammed on Friday, falling as much as 6.8%. By 1:05 p.m. EDT, the electric-car company’s stock was down 6.7%.

    The stock’s decline follows a series of tweets from CEO Elon Musk on Thursday night. One tweet mocked the Securities and Exchange Commission, just days after Musk and Tesla agreed to settle with the agency.

  • [By Daniel Sparks]

    Shares of electric-car company Tesla (NASDAQ:TSLA) moved higher Monday, rising as much as 6%. At 11:28 EDT, shares were up 5%. The stock’s gain follows a letter from Tesla CEO Elon Musk to employees over the weekend that said the company was ready to report its best quarter ever.

  • [By Brian Feroldi]

    Last year I shared 10 reasons why I’ve invested in Tesla (NASDAQ:TSLA) for the long term. However, it would be an enormous understatement to say that the last year has been challenging for the company. Between the slower-than-planned Model 3 production ramp up, mounting financial losses, and an endless drumbeat of pessimism from the short-sellers, it’s little wonder that in a recent interview with The New York Times, Elon Musk described it as “the most difficult and painful year of my career.”

Top 10 Warren Buffett Stocks For 2019: Advanced Semiconductor Engineering, Inc.(ASX)

Advisors’ Opinion:

  • [By Joseph Griffin]

    LDK Solar (OTCMKTS:LDKYQ) and ASE Technology (NYSE:ASX) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Top 10 Warren Buffett Stocks For 2019: Superior Drilling Products, Inc.(SDPI)

Advisors’ Opinion:

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Superior Drilling Products (SDPI)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Money Morning News Team]

    Superior Drilling Products Inc. (NYSE: SDPI) is based in Utah and manufactures equipment used in drilling for the natural gas and oil mining sectors.

  • [By Max Byerly]

    Get a free copy of the Zacks research report on Superior Drilling Products (SDPI)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Money Morning Staff Reports]

    However, it’s unlikely Netlist repeats these returns anytime soon. After looking at last week’s top performing penny stocks, we’ll show you a penny stock on the verge of jumping over 230%…

    Penny Stock Current Share Price Last Week’s Gain
    Netlist Inc. (Nasdaq: NLST) $0.83 542.67%
    Mannkind Corp. (Nasdaq: MNKD) $1.80 79.09%
    Fred’s Inc. (Nasdaq: FRED) $2.49 73.68%
    Delcath Systems Inc. (OTCMKTS: DCTH) $3.70 72.63%
    Gemphire Therapeutics Inc. (Nasdaq: GEMP) $1.96 50.71%
    Bellerophon Therapeutics Inc. (Nasdaq: BLPH) $1.05 47.98%
    Cel-Sci Corp. (NYSE: CVM) $3.78 44.78%
    ParkerVision Inc. (OTCMKTS: PRKR) $0.60 29.42%
    Superior Drilling Products Inc. (NYSE: SDPI) $2.63 29.23%
    LiqTech International Inc. (NYSE: LIQT) $1.50 25.20%

    How to Profit off This $11.1 Billion Money Pool: By following a few simple steps, one IRS directive could help set you up to receive checks of up to $1,795 every single month thanks to a genius investment. Learn more…

Top 10 Warren Buffett Stocks For 2019: CryoLife, Inc.(CRY)

Advisors’ Opinion:

  • [By Logan Wallace]

    Cytosorbents (NYSE: CRY) and Cryolife (NYSE:CRY) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

  • [By Joseph Griffin]

    Amedica (NASDAQ:AMDA) and Cryolife (NYSE:CRY) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on CryoLife (CRY)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Stephan Byrd]

    CryoLife (NYSE:CRY) issued an update on its FY18 earnings guidance on Wednesday morning. The company provided EPS guidance of $0.29-0.32 for the period, compared to the Thomson Reuters consensus EPS estimate of $0.31. The company issued revenue guidance of $250-256 million, compared to the consensus revenue estimate of $252.86 million.

Hot Energy Stocks To Watch Right Now

Ny, NY, based Investment company Guardian Life Insurance Co Of America buys iShares Russell 2000 Value, iShares Russell Mid-cap Value, SPDR S&P 500, iShares MSCI Emerging Index Fund, Amazon.com Inc, Broadcom Inc, Facebook Inc, AT&T Inc, Alphabet Inc, Alphabet Inc, sells Invesco DB Agriculture Fund, Invesco DB Oil Fund, Invesco DB Energy Fund, Fitbit Inc, Antero Resources Corp during the 3-months ended 2018-06-30, according to the most recent filings of the investment company, Guardian Life Insurance Co Of America. As of 2018-06-30, Guardian Life Insurance Co Of America owns 517 stocks with a total value of $508 million. These are the details of the buys and sells.

New Purchases: SPY, AVGO, TWTR, TTWO, SIVB, MSCI, ABMD, HFC, FLT, EVRG, Added Positions: IWN, IWS, EFA, IWD, EEM, GLD, MSFT, AAPL, AMZN, FB, Reduced Positions: DISCK, Sold Out: DBA, DBO, DBE, FIT, AR, TWX, TRTN, MON, WYND, CSRA,

For the details of GUARDIAN LIFE INSURANCE CO OF AMERICA’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=GUARDIAN+LIFE+INSURANCE+CO+OF+AMERICA

Hot Energy Stocks To Watch Right Now: Semtech Corporation(SMTC)

Advisors’ Opinion:

  • [By Shane Hupp]

    Media stories about Semtech (NASDAQ:SMTC) have been trending somewhat positive recently, Accern reports. Accern ranks the sentiment of media coverage by analyzing more than 20 million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores closest to one being the most favorable. Semtech earned a media sentiment score of 0.09 on Accern’s scale. Accern also assigned news articles about the semiconductor company an impact score of 44.4405753751248 out of 100, meaning that recent media coverage is somewhat unlikely to have an impact on the company’s share price in the next few days.

  • [By Lee Jackson]

    This is another chip company that the Baird team likes for a 5G infrastructure and small cell play. Semtech Corp. (NASDAQ: SMTC) is a supplier of analog and mixed-signal semiconductor products. It designs, develops and markets a range of products for commercial applications, which are sold into the enterprise computing, communications, consumer and industrial end markets.

  • [By Logan Wallace]

    Semtech Co. (NASDAQ:SMTC) VP Marc Pegulu sold 500 shares of the firm’s stock in a transaction on Friday, July 6th. The shares were sold at an average price of $48.85, for a total value of $24,425.00. Following the completion of the sale, the vice president now owns 15,453 shares in the company, valued at $754,879.05. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

  • [By Ethan Ryder]

    Semtech Co. (NASDAQ:SMTC) SVP James Jungsup Kim sold 8,617 shares of Semtech stock in a transaction on Tuesday, September 18th. The stock was sold at an average price of $60.00, for a total value of $517,020.00. Following the completion of the transaction, the senior vice president now owns 54,842 shares in the company, valued at $3,290,520. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

  • [By Motley Fool Transcription]

    Semtech Corporation (NASDAQ:SMTC)Q2 2019 Earnings Conference CallAug. 29, 2018, 5:00 p.m. ET

    Contents:
    Prepared Remarks Questions and Answers Call Participants
    Prepared Remarks:

    Operator

Hot Energy Stocks To Watch Right Now: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Daniel Sparks]

    Since Tesla (NASDAQ:TSLA) CEO Elon Musk revealed earlier this month he was considering taking the company private at $420 per share, the media narrative about the electric-car maker has shifted. Specifically, headlines about whether the company could live up to ambitious production targets have mostly faded into the rearview mirror as the media debates whether or not Tesla could go private or not.

  • [By ]

    However, on its most recent earnings report, Tesla Inc (TSLA) CEO Elon Musk called moats “lame,” saying, “if your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation.”

  • [By Daniel Sparks]

    Shares of electric-car company Tesla (NASDAQ:TSLA) jumped as much as 5.3% on Wednesday, recovering from a sharp decline on Tuesday. By the end of the trading day on Wednesday, Tesla stock was up about 4.9%.

Hot Energy Stocks To Watch Right Now: Tetra Tech Inc.(TTEK)

Advisors’ Opinion:

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Tetra Tech (TTEK)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    Tetra Tech, Inc. (NASDAQ:TTEK) shares hit a new 52-week high on Friday . The company traded as high as $71.15 and last traded at $70.70, with a volume of 2488 shares. The stock had previously closed at $70.20.

  • [By Ethan Ryder]

    Tri-Tech (OTCMKTS: TRITF) and Tetra Tech (NASDAQ:TTEK) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

  • [By Joseph Griffin]

    Thrivent Financial for Lutherans increased its position in shares of Tetra Tech, Inc. (NASDAQ:TTEK) by 6.4% during the 1st quarter, Holdings Channel reports. The firm owned 37,544 shares of the industrial products company’s stock after purchasing an additional 2,262 shares during the quarter. Thrivent Financial for Lutherans’ holdings in Tetra Tech were worth $1,838,000 as of its most recent SEC filing.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Tetra Tech (TTEK)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Hot Low Price Stocks To Invest In 2019

In my very first MannKind article I offered for my SA readers, I made the following statement:

Wall Street gurus are always smarter than the retail investor that doesn’t do their homework.

I have mentioned several times that MannKind’s (NASDAQ:MNKD) management understands the reality and has done a remarkable job in keeping the company hooked up to a life support system that has allowed them to be one of the few (other than the short-sellers) to benefit from these four years of futility for the retail investors. In recent days, with the flurry of superfluous SEC filings and press releases this has only resulted in the stock falling to a near all-time low price. The time is neigh for this saga becoming history so we can close the books on this financial fiasco. It’s now clear who has done their homework on MannKind!

Hot Low Price Stocks To Invest In 2019: Toll Brothers Inc.(TOL)

Advisors’ Opinion:

  • [By ]

    LG Homes (LGIH) : “I like Lennar (LEN) and I also like Toll Brothers (TOL) .”

    GrubHub (GRUB) : “I’ve been riding this one for a long time. It might be time to take some profits. “

  • [By ]

    In the Lightning Round, Cramer was bullish on T-Mobile US (TMUS) , Lennar (LEN) , Toll Brothers (TOL) , Tyson Foods (TSN) , JB Hunt Transport Services (JBHT) and International Paper (IP) .

  • [By ]

    3. Toll Brothers (NYSE: TOL)
    The Horsham, Pennsylvania-based, $7 billion market cap builder is lower than 7% this year, making it an ideal buy right now.

  • [By Max Byerly]

    Toll Brothers (NYSE:TOL) fell 9.6% during trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $39.40 and last traded at $39.46. 7,725,063 shares were traded during mid-day trading, an increase of 253% from the average session volume of 2,189,076 shares. The stock had previously closed at $43.63.

Hot Low Price Stocks To Invest In 2019: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Paul Ausick]

    Late Monday a report hit the wire that Tesla Inc. (NASDAQ: TSLA) was stopping production of its Model 3 sedan for about a week in order, the company said in a statement, “to improve automation and systematically address bottlenecks in order to increase production rates.” The company reaffirmed that it is on track to reach a production rate of 5,000 Model 3s a week by the end of the second quarter.

  • [By ]

    Once again, Charlie Munger stole the show — this time with a tweak of the inferior executive known as Tesla (TSLA) CEO Elon Musk. Musk, of course, responded sarcastically on Twitter in his child-like manner instead of a 46-year-old executive trying to make his electric car company profitable.

  • [By Paul Ausick]

    When it rains, it pours. Tesla Inc. (NASDAQ: TSLA) is getting rained on and it is indeed pouring. Since reporting first-quarter results on May 2, the stock has dropped more than 5.5%.

  • [By ]

    The waiting list is piling up for this hot piece of technology from Tesla Inc. (TSLA) .

    No, it’s not the Model 3 – or any other car model, for that matter.

Hot Low Price Stocks To Invest In 2019: Payment Data Systems, Inc.(PYDS)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Euronet Worldwide (NASDAQ: EEFT) and Payment Data Systems (NASDAQ:PYDS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

  • [By Joseph Griffin]

    Here are some of the news headlines that may have effected Accern Sentiment Analysis’s rankings:

    Get Payment Data Systems alerts:

    Euronet Worldwide (EEFT) versus Payment Data Systems (PYDS) Financial Comparison (americanbankingnews.com) Payment Data Systems (PYDS) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS (americanbankingnews.com) Payment Data Systems’ (PYDS) CEO Louis Hoch Q1 2018 Results – Earnings Call Transcript (seekingalpha.com) Edited Transcript of PYDS earnings conference call or presentation 15-May-18 9:00pm GMT (finance.yahoo.com) Payment Data Systems Announces Results for the First Quarter of 2018 (finance.yahoo.com)

    NASDAQ:PYDS traded up $0.03 on Friday, reaching $1.75. 66,441 shares of the stock traded hands, compared to its average volume of 170,972. Payment Data Systems has a 12 month low of $1.17 and a 12 month high of $4.10.

  • [By Logan Wallace]

    Net 1 UEPS Technologies (NASDAQ: UEPS) and Payment Data Systems (NASDAQ:PYDS) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Hot Low Price Stocks To Invest In 2019: Boot Barn Holdings, Inc.(BOOT)

Advisors’ Opinion:

  • [By Lisa Levin]

    Breaking news

    Deere & Company (NYSE: DE) reported weaker-than-expected results for its second quarter.
    Applied Materials, Inc. (NASDAQ: AMAT) reported stronger-than-expected results for its second quarter, but issued weak sales outlook for the third quarter.
    Nordstrom, Inc. (NYSE: JWN) reported upbeat results for its first quarter. Comparable-store sales rose 0.6 percent.
    Boot Barn Holdings Inc (NYSE: BOOT) disclosed a 7.2 million common stock offering.

  • [By Motley Fool Staff]

    Henry Boot (NYSE:BOOT) Q4 2018 Earnings Conference CallMay. 15, 2018 4:30 p.m. ET

    Contents:
    Prepared Remarks Questions and Answers Call Participants
    Prepared Remarks:

    Operator

  • [By Lisa Levin]

    Breaking news

    Deere & Company (NYSE: DE) reported weaker-than-expected results for its second quarter.
    Applied Materials, Inc. (NASDAQ: AMAT) reported stronger-than-expected results for its second quarter, but issued weak sales outlook for the third quarter.
    Nordstrom, Inc. (NYSE: JWN) reported upbeat results for its first quarter. Comparable-store sales rose 0.6 percent.
    Boot Barn Holdings Inc (NYSE: BOOT) disclosed a 7.2 million common stock offering.

  • [By Lisa Levin] Gainers
    Sanmina Corp (NASDAQ: SANM) shares rose 15.2 percent to $31.90 in pre-market trading as the company reported stronger-than-expected earnings for its second quarter on Monday.
    Cadence Design Systems, Inc. (NASDAQ: CDNS) rose 12.4 percent to $41.30 in pre-market trading after the company posted upbeat Q1 results and issued a strong Q2 forecast.
    Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE) rose 10.8 percent to $8.75 in pre-market trading.
    Mitel Networks Corporation (NASDAQ: MITL) rose 8.8 percent to $11.05 in pre-market trading after the company agreed to be acquired by affiliates of Searchlight Capital Partners for $2.0 billion.
    Galectin Therapeutics, Inc. (NASDAQ: GALT) rose 7.3 percent to $3.70 in pre-market trading.
    Riot Blockchain, Inc. (NASDAQ: RIOT) shares rose 6.9 percent to $7.00 in pre-market trading after declining 1.50 percent on Monday.
    Hallmark Financial Services, Inc. (NASDAQ: HALL) rose 6.5 percent to $10.68 in pre-market trading.
    Boot Barn Holdings, Inc. (NYSE: BOOT) rose 5.2 percent to $20.40 in pre-market trading after gaining 4.53 percent on Monday.
    New Oriental Education & Technology Group Inc. (NYSE: EDU) rose 5 percent to $91.16 in pre-market trading after reporting Q3 results.
    Shire plc (NASDAQ: SHPG) rose 5 percent to $167.98 in pre-market trading after Bloomberg reported that Takeda is nearing a preliminary agreement to acquire Shire after sweetened bid.
    Outfront Media Inc. (NYSE: OUT) shares rose 5 percent to $19.00 in pre-market trading.
    Geron Corporation (NASDAQ: GERN) rose 4.3 percent to $4.18 in pre-market trading after gaining 5.80 percent on Monday.
    SAP SE (NYSE: SAP) rose 3.7 percent to $109.80 in pre-market trading after the company posted strong quarterly results and raised its outlook for the year.
    Golden Ocean Group Limited (NASDAQ: GOGL) shares rose 3.7 percent to $8.70 in pre-market trading after gaining 1.45 percent on Monday.
    Deutsche Bank Aktiengesellschaft (NYSE: D

Hot Low Price Stocks To Invest In 2019: SL Green Realty Corporation(SLG)

Advisors’ Opinion:

  • [By Max Byerly]

    Get a free copy of the Zacks research report on SL Green Realty (SLG)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Joseph Griffin]

    Swiss National Bank lessened its stake in SL Green Realty (NYSE:SLG) by 13.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 315,900 shares of the real estate investment trust’s stock after selling 51,200 shares during the period. Swiss National Bank owned 0.35% of SL Green Realty worth $30,589,000 as of its most recent SEC filing.

day trading courses

Berkshire Hathaway(NYSE:BRK-A) (NYSE:BRK-B) held its annual meeting last weekend. In this episode of MarketFoolery, host Chris Hill talks with special guest Matt Koppenheffer of Fool Germany about some Volkswagen, some Tesla (NASDAQ:TSLA), and a whole lot of Berkshire. Berkshire just got really interested in Apple (NASDAQ:AAPL), but how is this different from the company’s ill-fated investment in IBM (NYSE:IBM)?

Warren Buffett and Elon Musk took to some verbal sparring about the importance of moats and the ease of running a candy company. Berkshire’s HomeServices branched into Berlin, setting the massive company up for even more growth down the road. Volkswagen is back in the news lately, and it’s still not for anything good — but its stock tells a different story. Tune in to find out more.

A full transcript follows the video.

This video was recorded on May 8, 2018.

Chris Hill: It’sTuesday, May 8th. Welcome to MarketFoolery! I’m Chris Hill. Special guestin the studio today, and by special, I mean,he comes by about once a year. From Fool Germany, it’sMatt Koppenheffer. Good to see you!

day trading courses: HNI Corporation(HNI)

Advisors’ Opinion:

  • [By Lisa Levin]

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

    Wall Street expects Halliburton Company (NYSE: HAL) to report quarterly earnings at $0.42 per share on revenue of $5.75 billion before the opening bell. Halliburton shares fell 0.06 percent to $51.93 in after-hours trading.
    Analysts expect Alphabet Inc. (NASDAQ: GOOGL) to post quarterly earnings at $9.33 per share on revenue of $30.31 billion after the closing bell. Alphabet shares gained 0.24 percent to $1,079.88 in after-hours trading.
    Before the markets open, Lennox International Inc. (NYSE: LII) is projected to report quarterly earnings at $1.09 per share on revenue of $815.16 million. Lennox shares dropped 2.84 percent to close at $197.08 on Friday.
    HNI Corporation (NYSE: HNI) reported retirement of its CEO Stan A. Askren and appointment of Jeffrey D. Lorenger as new CEO. HNI also reported strong earnings for its first quarter. HNI shares fell 3.17 percent to $34.20 in the after-hours trading session.
    Analysts are expecting Hasbro, Inc. (NASDAQ: HAS) to have earned $0.35 per share on revenue of $822.15 million in the latest quarter. Hasbro will release earnings before the markets open. Hasbro shares fell 0.39 percent to $82.49 in after-hours trading.

    Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

day trading courses: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Chris Lange]

    On Wednesday, Tesla Inc. (NASDAQ: TSLA) is also expected to share its latest quarterly earnings. The consensus estimates see a net loss of $3.10 per share on revenue of $3.28 billion. Shares were at $343.75 on Fridays close, in a 52-week range of $242.01 to $389.61. The consensus price target is $314.17.

  • [By Garrett Baldwin]

    Yesterday, the Fed Open Market Committee announced it would not raise interest rates this session. The central bank committee, which is in charge of monetary policy, said that inflation is rising and that the U.S. economy is getting better. Markets are now looking forward to the next meeting on June 12 for the U.S. Federal Reserve to bump rates higher for the second time in 2018. Shares of Tesla Inc. (Nasdaq: TSLA) slumped more than 4.5% after Tesla CEO Elon Musk held an highly unusual earnings call. After announcing that his firm burned through $700 million in cash during the quarter of 2018, Musk refused to take any more questions on the company’s fiscal health, dismissing analysts’ questions as “boring.” Musk instead spent the rest of the quarterly call taking questions from a YouTuber named Gali Russell who had lobbied Musk on Twitter to let him partake in the earnings call. This morning, the U.S. Labor Department reported initial jobless claims rose by 2,000, to 211,000. Analysts had projected 225,000 for the week. The tightening U.S. labor market has now seen the total number of Americans receiving benefits fall to the lowest level since 1973. America’s unemployment rate is sitting at 4.1%, the lowest figure in 17 years. Tomorrow, the Labor Department will release the April jobs report.
    Four Stocks to Watch Today: GPRO, SPOT, CI
    GoPro Inc. (Nasdaq: GPRO) will lead another busy day of earnings reports on Wall Street. The firm will report earnings after the bell Thursday. Wall Street expects that the tech firm is about to report a loss of -$0.40 per share on top of $175.40 billion in revenue. Here’s a way to make a lot of money in a short time during earnings season. Spotify Technology SA(NYSE: SPOT) did not have a very good first earnings report. Shares plunged more than 8% after the firm’s music-streaming forecasts fell well short of expectations. During its earnings report, signals indicated that the firm’s growth could slow despite news that its

  • [By Douglas A. McIntyre]

    Short bets against Tesla Inc. (NASDAQ: TSLA) rose 20% in the period that ended April 13, based on the number of shares shorted. About 30% of Tesla’s shares were sold short. The data come at a time when Tesla is struggling with production issues, safety concerns and worries about its financial health.

  • [By Rich Duprey, Rich Smith, and Travis Hoium]

    Yet Shopify isn’t the only business with compelling arguments in its favor. We asked three of our Motley Fool investors for growth stocks that they like that have the potential to post returns that would put Shopify’s own to shame. They chose gaming specialist Activision Blizzard (NASDAQ:ATVI), electric car maker Tesla (NASDAQ:TSLA), and streaming device maker Roku (NASDAQ:ROKU).

  • [By Nicholas Rossolillo]

    At the moment, Jaguar’s new SUV is Tesla’s (NASDAQ:TSLA) only real competitor. Tesla delivered just over 100,000 vehicles last year, but Jaguar could close in on that number fast. An order for 20,000 I-PACEs, before the car has even started rolling off of showroom floors, is a good start.

  • [By Motley Fool Staff]

    In this segment from the Market Foolery podcast, host Chris Hill and David Kretzmann of Motley Fool Rule Breakers and Supernova discuss the news out of Tesla(NASDAQ:TSLA). They open with the basic numbers from its first-quarter report, which were bad, admittedly — but still better than expected. Its cars may have a “ludicrous speed” option, but that’s not a feature CEO Elon Musk can activate in his factories, and the ramp up of production is still behind schedule.

day trading courses: Textainer Group Holdings Limited(TGH)

Advisors’ Opinion:

  • [By Ethan Ryder]

    Textainer Group (NYSE: TGH) is one of 17 publicly-traded companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Textainer Group to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, profitability, earnings, dividends and risk.

  • [By Shane Hupp]

    Textainer Group (NYSE: TGH) is one of 17 public companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it weigh in compared to its rivals? We will compare Textainer Group to similar companies based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, institutional ownership and risk.

  • [By Shane Hupp]

    These are some of the news stories that may have effected Accern’s scoring:

    Get Textainer Group alerts:

    Head to Head Survey: Textainer Group (TGH) vs. The Competition (americanbankingnews.com) Textainer Group (TGH) Upgraded by ValuEngine to “Buy” (americanbankingnews.com) Financial Comparison: Textainer Group (TGH) vs. The Competition (americanbankingnews.com) Aircastle (AYR) versus Textainer Group (TGH) Head-To-Head Comparison (americanbankingnews.com) Critical Comparison: Textainer Group (TGH) and Its Rivals (americanbankingnews.com)

    Shares of Textainer Group stock opened at $17.85 on Friday. The stock has a market capitalization of $1,019.18, a P/E ratio of 43.54 and a beta of 2.50. Textainer Group has a 1 year low of $9.60 and a 1 year high of $26.50. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 2.28.

  • [By Stephan Byrd]

    Textainer Group (NYSE: TGH) is one of 17 public companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it compare to its competitors? We will compare Textainer Group to related businesses based on the strength of its dividends, analyst recommendations, earnings, institutional ownership, profitability, risk and valuation.

day trading courses: Gladstone Land Corporation(LAND)

Advisors’ Opinion:

  • [By Joseph Griffin]

    Landsec (LON:LAND) announced a dividend on Tuesday, May 15th, Upcoming.Co.Uk reports. Investors of record on Thursday, June 21st will be given a dividend of GBX 14.65 ($0.20) per share on Friday, July 27th. This represents a yield of 1.54%. The ex-dividend date of this dividend is Thursday, June 21st. This is an increase from Landsec’s previous dividend of $9.85. The official announcement can be viewed at this link.

day trading courses: CBRE Group, Inc.(CBG)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of Jeff Ubben’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Jeff+Ubben

    These are the top 5 holdings of Jeff UbbenTwenty-First Century Fox Inc (FOX) – 53,326,334 shares, 18.41% of the total portfolio. Alliance Data Systems Corp (ADS) – 5,877,400 shares, 15.07% of the total portfolio. CBRE Group Inc (CBG) – 24,916,923 shares, 10.92% of the total portfolio. Shares reduced by 13.72%KKR & Co LP (KKR) – 47,750,000 shares, 10.18% of the total portfolio. Shares added by 4.82%Morgan Stanley (MS) – 17,959,620 shares,

Wednesdays Vital Data: Nvidia Corporation (NVDA), Micron Technology, Inc. (MU) and Tesla Inc. (TS

U.S. stock futures are mixed this morning. Overnight, North Korea signaled it would pull out of a summit with the U.S. if President Donald Trump insisted on denuclearization. The uncertainty has shaken Wall Street and looks to put an end to eight straight sessions of gains.

stock market today

Meanwhile, economic data will also be in focus today. April U.S. housing starts and the April reading on  industrial production are slated to hit the Street later this morning.

Ahead of the open, futures on the Dow Jones Industrial Average were down 0.09%. S&P 500 futures were last seen lower by 0.08% and Nasdaq-100 futures have lost 0.05%.

In options activity, volume was anemic on Tuesday. Only about 16.7 million calls and 15.7 million puts changed hands on the session. On the CBOE, the single-session equity put/call volume ratio held at 0.62. The 10-day moving average fell to 0.6, hitting it’s lowest reading since March 15.

Options traders eschewed corporate earnings reports in favor of cryptocurrency speculation on Nvidia Corporation (NASDAQ:NVDA) and Micron Technology, Inc.’s (NASDAQ:MU) recent breakout. Meanwhile, Tesla Inc (NASDAQ:TSLA) was hit with heavy put volume after Morgan Stanley cut its price target.

Let’s take a closer look:

Wednesday’s Vital Options Data: Nvidia Corporation (NVDA), Micron Technology, Inc. (MU) and Tesla Inc. (TSLA)

Nvidia Corporation (NVDA)

Projected decline from crytpocurrency miners continues to plague NVDA stock. In its recent earnings report, Nvidia said it expected to see crypto demand drop by 75% in the second quarter.

By contrast, rival Advanced Micro Devices, Inc. (NASDAQ:AMD) is on the rise despite similar crypto demand concerns. However, AMD reported that only about 10% of its revenue came from cryptocurrency miners, while Nvidia said crypto demand made up 20% of their revenue.

NVDA options traders are either taking profits amid the stock’s decline, or gearing up for a rebound. Volume yesterday rose to 254,000 contracts, or about 1.6 times NVDA’s daily average. Calls accounted for 60% of the day’s activity.

June NVDA options are pointing toward a continued decline for NVDA stock. Currently, the June put/call open interest ratio rests at a lofty perch of 1.17. Peak put OI totals 9,500 contracts at the deep out-of-the-money $220 strike, however, and could be a sign of put selling and premium capture.

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Micron Technology, Inc. (MU)

It’s that time again. Time for MU stock to make another pre-earnings rally into the stratosphere. Micron shares are up nearly 12% since Monday last week, with the shares rallying hard off recent lows below $50. Adding to yesterday’s buying pressure, Stifel raised its price target to $101 from $95, making it the highest among all brokerage targets.

Stifel estimates that estimates that PC DRAM prices are up 6% quarter-over-quarter, with mobile DRAM prices up 4%. Additionally, Stifel noted that “the NAND flash market is growing and far from collapsing as the bear case has it.”

MU reports earnings near the end of next month, and options traders are already gearing up for the rally. Volume yesterday jumped to 231,000 contracts, with calls claiming 70% of the day’s take. The June put/call OI ratio rests at a bullish 0.55, with calls nearly doubling puts for the series.

However, June monthly options will likely expire ahead of earnings. The weekly June 22 series is considerably more bullish. In fact, the put/call OI ratio for this series comes in at a lowly 0.19, with calls more than five times as popular as puts.

Tesla Inc. (TSLA)

Long-time Tesla bull, Morgan Stanley analyst Adam Jonas, just cut his price target on the electric vehicle maker. Jonas lowered his target to $291 from $376, expressing concerns about Tesla’s cash flow situation. Summing up Jonas’ comments, the analyst is betting that Tesla will need to continue to raise cash, projecting that the company will need to raise $3 billion in the third quarter.

TSLA options traders were listening. Volume yesterday rose to 195,000 contracts, with puts making up 53% of the day’s take. Looking out to June, the bears are firmly in control. Specifically, the June put/call OI ratio rests at 1.76, with puts nearly doubling calls in the series.

Peak put OI totals more than 17,000 contracts at the $250 strike. A breach of $250 could lead to a serious round of selling pressure and put TSLA stock deep in bear market territory.

As of this writing, Joseph Hargett held no positions on any of the aforemen

Top 10 China Stocks To Own Right Now

The $3 billion incentive package used to lure Foxconn to Wisconsin to build a giant factory was only the beginning.

Associated sweeteners have now grown to more than $4 billion — adding in the cost of local government incentives and various infrastructure projects, like roads and highways, sewer and power lines.

Foxconn is also being allowed to skip state environmental rules and oversight it would otherwise have had to follow.

Taiwan-based Foxconn is best known as the electronics manufacturer that builds things like iPhones at massive factories in China, where employees not only work but live.

The plan to build the flat screen plant in Wisconsin, announced in July, was hailed at the time by President Trump and Governor Scott Walker as a sign of a rebirth of American manufacturing, winning back jobs that had been going to China for years.

“This is a once-in-a-century opportunity for our state and our country, and Wisconsin is ready,” said Walker at the time of the announcement. Construction on the facility is expected to break ground in 2018.

Top 10 China Stocks To Own Right Now: Equity Residential(EQR)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Equity Residential (NYSE:EQR) by 0.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 196,723 shares of the real estate investment trust’s stock after buying an additional 827 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank owned approximately 0.05% of Equity Residential worth $12,122,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Top 10 China Stocks To Own Right Now: Royal Bank Scotland plc (RBS)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    ARMO BioSciences, Inc. (NASDAQ: ARMO) shares rose 67.5 percent to $49.96 in pre-market trading after Eli Lilly and Company (NYSE: LLY) announced plans to acquire ARMO BioSciences for $50 per share.
    Turtle Beach Corporation (NASDAQ: HEAR) rose 62.8 percent to $11.30 in pre-market trading after the company reported Q1 results and raised its FY18 outlook.
    vTv Therapeutics Inc. (NASDAQ: VTVT) rose 23.4 percent to $2.11 in pre-market trading following announcement that the company will pre-specify new subgroup with the FDA and report Phase 3 Part B results in June.
    Resonant Inc. (NASDAQ: RESN) rose 19.1 percent to $5.00 in pre-market trading after reporting Q1 results.
    RXi Pharmaceuticals Corporation (NASDAQ: RXII) rose 17.7 percent to $2.39 in pre-market trading following Q1 results.
    Clean Energy Fuels Corp. (NASDAQ: CLNE) rose 15.2 percent to $2.20 in pre-market trading after French company Total announced plans to acquire 25 percent stake in Clean Energy Fuels for $83.4 million.
    Everspin Technologies, Inc. (NASDAQ: MRAM) rose 14.6 percent to $8.50 in pre-market trading after the company reported strong results for its first quarter.
    Carvana Co. (NYSE: CVNA) shares rose 11 percent to $27.50 in pre-market trading after reporting upbeat Q1 sales.
    Sunrun Inc. (NASDAQ: RUN) rose 8.9 percent to $10.70 in pre-market trading following upbeat quarterly earnings.
    MediciNova, Inc. (NASDAQ: MNOV) rose 8.1 percent to $11.35 in pre-market trading after the company announced opening of Investigational New Drug Application for MN-166 (ibudilast) in glioblastoma.
    New Gold Inc. (NYSE: NGD) shares rose 7.7 percent to $2.65 in pre-market trading after the company reported that its President and CEO Hannes Portmann left the company. The company named Raymond Threlkeld as successor.
    Otter Tail Corporation (NASDAQ: OTTR) shares rose 7.4 percent to $46.60 in the pre-market trading session.
    Himax Technologies, Inc. (NASDAQ: HIMX) shares rose

Top 10 China Stocks To Own Right Now: Loral Space and Communications Inc.(LORL)

Advisors’ Opinion:

  • [By Max Byerly]

    Loral Space & Communications (NASDAQ:LORL) was downgraded by equities researchers at ValuEngine from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

Top 10 China Stocks To Own Right Now: Helix Energy Solutions Group, Inc.(HLX)

Advisors’ Opinion:

  • [By Dan Caplinger]

    Wall Street suffered a sharp drop on Tuesday, with major benchmarks posting substantial declines in response to a combination of economic factors. The yield on the 10-year Treasury bond climbed above 3% for the first time since 2014, but of greater concern to many market participants were remarks in major corporate earnings reports suggesting that business conditions had likely hit their peak and were poised to deteriorate going forward. With raw materials costs starting to pick up, many manufacturers are reporting inflationary pressures that could hurt profits. Yet even as the broader indexes fell, some individual companies had good news to report. Sanmina (NASDAQ:SANM), Helix Energy Solutions (NYSE:HLX), and Weatherford International (NYSE:WFT) were among the best performers on the day. Here’s why they did so well.

  • [By Matthew DiLallo]

    Shares of Helix Energy Solutions Group Inc (NYSE:HLX) soared 33.3% last month thanks to a combination of higher oil prices, strong first-quarter results, and a string of analyst upgrades.

  • [By Matthew DiLallo]

    Shares of Helix Energy Solutions Group Inc.(NYSE:HLX) surged on Tuesday, rising more than 13% at 10:45 a.m. EDT after the company reported better-than-expected first-quarter results.

  • [By Lisa Levin] Gainers
    Check-Cap Ltd. (NASDAQ: CHEK) shares jumped 104.82 percent to close at $14.87 on Tuesday.
    EVINE Live Inc. (NASDAQ: EVLV) rose 31.25 percent to close at $1.06. The pay-TV home shopping company was named as a potential acquisition target by TechCrunch. According to the publication, Amazon.com, Inc. (NASDAQ: AMZN) is exploring ways of marketing its products and services to consumers beyond the internet.
    SemiLEDs Corporation (NASDAQ: LEDS) shares climbed 27.16 percent to close at $4.26 on Tuesday.
    Atossa Genetics Inc. (NASDAQ: ATOS) gained 27.09 percent to close at $3.80. Atossa Genetics disclosed that it has Received positive interim review from the Independent Safety Committee in Phase 1 Topical endoxifen dose escalation study in men.
    Heidrick & Struggles International, Inc. (NASDAQ: HSII) surged 17.13 percent to close at $37.95 as the company posted upbeat results for its first quarter.
    Santander Consumer USA Holdings Inc. (NYSE: SC) shares gained 15.91 percent to close at $18.21 following upbeat quarterly earnings.
    Riot Blockchain, Inc. (NASDAQ: RIOT) shares jumped 15.73 percent to close at $7.58 on Tuesday after declining 1.50 percent on Monday.
    Sanmina Corp (NASDAQ: SANM) shares gained 14.62 percent to close at $31.75 as the company reported stronger-than-expected earnings for its second quarter on Monday.
    Orchids Paper Products Company (NYSE: TIS) jumped 12.86 percent to close at $7.37. Orchids Paper Products is expected to report its Q1 financial results on Wednesday, April 25, 2018.
    Helix Energy Solutions Group, Inc. (NYSE: HLX) rose 12.8 percent to close at $7.05 following strong quarterly results.
    Avid Bioservices, Inc. (NASDAQ: CDMO) rose 12.72 percent to close at $3.81.
    Genprex, Inc. (NASDAQ: GNPX) gained 12.61 percent to close at $5.00.
    Obalon Therapeutics, Inc. (NASDAQ: OBLN) rose 12.39 percent to close at $3.72.
    NextDecade Corporation (NASDAQ: NEXT) shares climbed 11.88 percent to close at $7

Top 10 China Stocks To Own Right Now: Oshkosh Corporation(OSK)

Advisors’ Opinion:

  • [By Lisa Levin] Companies Reporting Before The Bell
    General Motors Company (NYSE: GM) is projected to report quarterly earnings at $1.24 per share on revenue of $34.66 billion.
    Bristol-Myers Squibb Company (NYSE: BMY) is estimated to report quarterly earnings at $0.85 per share on revenue of $5.24 billion.
    United Parcel Service, Inc. (NYSE: UPS) is expected to report quarterly earnings at $1.55 per share on revenue of $16.44 billion.
    Time Warner Inc. (NYSE: TWX) is projected to report quarterly earnings at $1.74 per share on revenue of $7.91 billion.
    ConocoPhillips (NYSE: COP) is expected to report quarterly earnings at $0.74 per share on revenue of $8.81 billion.
    PepsiCo, Inc. (NYSE: PEP) is expected to report quarterly earnings at $0.93 per share on revenue of $12.4 billion.
    American Airlines Group Inc. (NASDAQ: AAL) is estimated to report quarterly earnings at $0.72 per share on revenue of $10.42 billion.
    Southwest Airlines Co (NYSE: LUV) is expected to report quarterly earnings at $0.74 per share on revenue of $5.01 billion.
    Fiat Chrysler Automobiles N.V. (NYSE: FCAU) is estimated to report quarterly earnings at $0.8 per share on revenue of $34.52 billion.
    Union Pacific Corporation (NYSE: UNP) is projected to report quarterly earnings at $1.66 per share on revenue of $5.38 billion.
    D.R. Horton, Inc. (NYSE: DHI) is expected to report quarterly earnings at $0.85 per share on revenue of $3.76 billion.
    The Hershey Company (NYSE: HSY) is estimated to report quarterly earnings at $1.4 per share on revenue of $1.94 billion.
    Praxair, Inc. (NYSE: PX) is expected to report quarterly earnings at $1.56 per share on revenue of $2.94 billion.
    Altria Group, Inc. (NYSE: MO) is projected to report quarterly earnings at $0.92 per share on revenue of $4.63 billion.
    Shire plc (NASDAQ: SHPG) is estimated to report quarterly earnings at $3.54 per share on revenue of $3.72 billion.
    Oshkosh Corporation (NYSE: OSK) is projected to report quarter
  • [By Shane Hupp]

    Osisko Mining (TSE:OSK) Director Robert Wares purchased 10,000 shares of Osisko Mining stock in a transaction that occurred on Tuesday, May 15th. The shares were bought at an average price of C$2.06 per share, with a total value of C$20,600.00.

Top 10 China Stocks To Own Right Now: LightPath Technologies, Inc.(LPTH)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Euro Tech Holdings Company Limited (NASDAQ: CLWT) shares rose 14.1 percent to $3.65 in the pre-market trading session after reporting 2017 year-end results.
    LightPath Technologies, Inc. (NASDAQ: LPTH) rose 13.3 percent to $2.43 in pre-market trading after reporting a third-quarter earnings beat.
    MYnd Analytics, Inc. (NASDAQ: MYND) rose 10.5 percent to $3.49 in pre-market trading. MYnd Analytics reported a Q2 net loss of $2.7 million on revenue of $459,900.
    SORL Auto Parts, Inc. (NASDAQ: SORL) shares rose 8.4 percent to $5.68 in pre-market trading after reporting upbeat Q1 results.
    Famous Dave's of America, Inc. (NASDAQ: DAVE) shares rose 7.7 percent to $8.40 in pre-market trading after the company reported upbeat earnings for its first quarter on Monday.
    Xenon Pharmaceuticals Inc. (NASDAQ: XENE) rose 7.5 percent to $6.45 in pre-market trading after the company presented XEN901 Phase 1 clinical update and XEN1101 TMS pharmacodynamic Phase 1 data.
    Mimecast Ltd (NASDAQ: MIME) rose 6.5 percent to $43.50 in pre-market trading following a first-quarter sales beat.
    Boxlight Corporation (NASDAQ: BOXL) rose 6 percent to $12.50 in pre-market trading after surging 77.44 percent on Monday.
    Intellia Therapeutics, Inc. (NASDAQ: NTLA) shares rose 6 percent to $26.05 in pre-market trading after climbing 3.58 percent on Monday.
    PPDAI Group Inc. (NASDAQ: PPDF) rose 4.7 percent to $7.20 in pre-market trading following Q1 results.
    Xunlei Limited (NASDAQ: XNET) rose 4.1 percent to $13.88 in pre-market trading after gaining 2.54 percent on Monday.
    Valeant Pharmaceuticals International, Inc. (NYSE: VRX) shares rose 4.5 percent to $21.73 in pre-market trading. Mizuho upgraded Valeant from Neutral to Buy.
    Bovie Medical Corporation (NYSE: BVX) rose 4.1 percent to $3.80 in pre-market trading after reporting a first-quarter sales beat.
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Top 10 China Stocks To Own Right Now: Voyager Therapeutics, Inc.(VYGR)

Advisors’ Opinion:

  • [By Chris Lange]

    Voyager Therapeutics Inc. (NASDAQ: VYGR) will be presenting at the American Society of Gene and Cell Therapy annual meeting taking place May 16 to 19, 2018, in Chicago. The firm will be releasing data from its lead clinical program for Parkinsons disease, its preclinical programs targeting a monogenic form of amyotrophic lateral sclerosis (ALS) called SOD1, Huntingtons disease and Friedreichs ataxia, and its gene therapy vector platform including novel adeno-associated virus capsid optimization efforts and manufacturing capabilities.

  • [By Lisa Levin] Gainers
    The Trade Desk, Inc. (NASDAQ: TTD) jumped 36.2 percent to $71.82 after the company reported upbeat results for its first quarter. The company also issued strong second-quarter and FY18 sales guidance.
    WideOpenWest, Inc. (NYSE: WOW) jumped 30.4 percent to $8.80 after the company reported Q1 results.
    MoSys, Inc. (NASDAQ: MOSY) shares surged 28.6 percent to $1.9541 after the company reported better-than-expected Q1 results and issued strong Q2 forecast.
    Boxlight Corporation (NASDAQ: BOXL) gained 24 percent to $6.39.
    Akcea Therapeutics, Inc. (NASDAQ: AKCA) shares gained 19.1 percent to $24.60. Akcea Therapeutics, an affiliate of Ionis Pharmaceuticals Inc (NASDAQ: IONS) announced that the Endocrinologic and Metabolic Drugs Advisory Committee, which met to discuss the safety and efficacy of subcutaneously injected volanesoren solution for patients with familial chylomicronemia syndrome, voted 12-8 to support its approval.
    Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) shares rose 17 percent to $10.31 after reporting Q3 results.
    ArcBest Corporation (NASDAQ: ARCB) gained 16.8 percent to $43.1457 after reporting upbeat quarterly earnings.
    Amtech Systems, Inc. (NASDAQ: ASYS) rose 16.2 percent to $8.60. Amtech posted Q2 earnings of $0.19 per share on sales of $32.783 million.
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    Noodles & Company (NASDAQ: NDLS) shares rose 10.9 percent to $8.65 following Q1 results.
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    Blink Charging Co. (NASDAQ: BLNK) rose 10.4 percent to $5.739.
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  • [By Max Byerly]

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Top 10 China Stocks To Own Right Now: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By ]

    Tesla Inc. (TSLA) is gearing up for the ninth circle of “Model 3 production hell.”

    In an email to employees Tuesday, Tesla CEO Elon Musk let the cat out of the bag with respect to where Tesla currently sits in its Model 3 production ramp up.

  • [By ]

    That’s not to say that in some areas there’s not too much hype. Cramer said he hates hype, especially today’s analyst quip that shares of Tesla (TSLA) could increase not by 20%, but by 20 times their current value. Hype like that, Cramer said, is madness.

  • [By Wayne Duggan]

    Venture capitalist Tim Draper, who was an early investor in Tesla, Inc. (NASDAQ: TSLA), Skype and Hotmail, over the weekend said bitcoin will be bigger than all three of these companies combined and could even end up being bigger than the internet. Draper also reiterated his 2022 price target of $250,000 for bitcoin.

  • [By Douglas A. McIntyre]

    Short bets against Tesla Inc. (NASDAQ: TSLA) rose 20% in the period that ended April 13, based on the number of shares shorted. About 30% of Tesla’s shares were sold short. The data come at a time when Tesla is struggling with production issues, safety concerns and worries about its financial health.

Top 10 China Stocks To Own Right Now: Centennial Resource Development, Inc. (CDEV)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Amedica Corporation (NASDAQ: AMDA) rose 31.3 percent to $4.11 in pre-market trading after climbing 181.98 percent on Tuesday.
    ZAGG Inc (NASDAQ: ZAGG) rose 18.7 percent to $13.65 in pre-market trading after the company posted better-than-expected Q1 earnings.
    TripAdvisor, Inc. (NASDAQ: TRIP) rose 18.6 percent to $46.00 in pre-market trading after the company reported stronger-than-expected results for its first quarter on Tuesday.
    TransEnterix, Inc. (NYSE: TRXC) shares rose 15 percent to $2.08 in pre-market trading after reporting Q4 results.
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    OPKO Health, Inc. (NASDAQ: OPK) shares rose 6.8 percent to $3.44 in pre-market trading following Q1 beat.
    Tel-Instrument Electronics Corp. (NYSE: TIK) rose 6.7 percent to $3.20 in pre-market trading after surging 25.37 percent on Tuesday.
    KBS Fashion Group Limited (NASDAQ: KBSF) rose 6.4 percent to $5.84 in pre-market trading after jumping 9.36 percent on Tuesday.
    Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) rose 6.6 percent to $8.26 in pre-market trading after reporting Q2 earnings.
    New Relic, Inc. (NYSE: NEWR) rose 6.3 percent to $82.00 in pre-market trading following Q4 results.
    Match Group, Inc. (NASDAQ: MTCH) rose 5.8 percent to $38.43 in pre-market trading after reporting upbeat Q1 earnings.
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    Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

  • [By Lisa Levin] Gainers
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    ZAGG Inc (NASDAQ: ZAGG) rose 26.5 percent to $14.55 after the company posted better-than-expected Q1 earnings.
    OPKO Health, Inc. (NASDAQ: OPK) shares gained 25 percent to $4.0234 following Q1 beat.
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    Sears Holdings Corporation (NASDAQ: SHLD) shares surged 21.7 percent to $3.36. Amazon.com's partnership with Sears started in 2017 with an agreement to sell Kenmore-branded appliances online. On Wednesday, the companies announced an extension of their relationship to now include tire delivery and installations.
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Top 10 China Stocks To Own Right Now: Layne Christensen Company(LAYN)

Advisors’ Opinion:

  • [By Logan Wallace]

    Headlines about Layne Christensen (NASDAQ:LAYN) have been trending somewhat positive recently, Accern Sentiment Analysis reports. Accern ranks the sentiment of media coverage by monitoring more than 20 million blog and news sources in real time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores closest to one being the most favorable. Layne Christensen earned a news sentiment score of 0.15 on Accern’s scale. Accern also gave media coverage about the construction company an impact score of 45.8722865003839 out of 100, indicating that recent media coverage is somewhat unlikely to have an effect on the stock’s share price in the next several days.

L Brands: So Much More Than Victoria’s Secret

Things are looking good if you are a fan of the Victoria’s Secret brand. While the world’s most renowned women’s lingerie brand usually sells its good at a hefty price tag, consumers now get the opportunity to buy these articles at a large discount as new promotions and limited time offerings are being featured in the stores and on the website on a daily basis. While this is great news for the Victoria’s Secret consumer, it is a thorn in the eye of the investors who have placed their money in L Brands, the mother company behind Victoria’s Secret. L Brands shares are down 46% YTD, and some sell-side analysts are convinced that L Brands shares still face more downside.

The question one has to ask however is, whether or not Victoria’s Secret is really the most important entity within the L Brands consortium. Surely, it is undeniable that Victoria’s Secret is the most famous brand within the group, and in terms of revenues, it towers over the other brands. When shifting the focus to operating income, however, it becomes clear that there are other brands in the portfolio that are contributing more to the bottom line than Victoria’s Secret. While most bullish pitches about L brands argue that the problems at Victoria’s Secret are short-term related and that it is a strong brand that is set to make a turnaround, I look at L Brands in a different way. I do not deny the potential of a Victoria’s Secret turnaround, nor do I question the strong brand. The numbers however prove that Victoria’s Secret is in a severely troubled state, and I am of the opinion that actions chosen by management are insufficient. I however believe the case can be made that the Bath & Body Works brand is severely undervalued within the L Brands group and that the market does not fully appreciate the optionality that L Brands has in creating value by spinning off or discontinuing certain parts within the group.

An introduction

L Brands was founded in 1963 when founder and current CEO Les Wexner opened his first “The Limited” store. In 1969, Wexner took the company public and in 1982 Wexner acquired the Victoria’s Secret brand for USD 1 million. After acquiring and spinning of several brands such as Abercrombie & Fitch (ANF) and the sale of its oldest brand “The Limited”, the current L Brands group looks as follows:

Victoria’s Secret: L Brands’ flagship brand and world renowned lingerie brand. Pink: Separate store concept from Victoria’s Secret but grouped under the latter, Pink is a women’s lingerie retailer focused on teenagers, college students and young professionals. Bath & Body Works: Market leading speciality retailer in home fragrances, candles, soaps, La Senza: Women Lingerie retailer, focusing on a younger target audience than Victoria’s Secret. Henri Bendel: Upscale retailer of handbags, accessories, women clothing and fragrances.

I will go in more detail on these segments, but first, let us have a look at the revenue and operating profit contribution of these segments.

As stated in the prologue of this analysis, the Victoria’s Secret brand takes the largest part of the revenue contribution for its account. While revenue contribution declined from 63% of total sales in FY15 to 58% in FY17, the brand still contributes significantly more than the second largest contributor Bath & Body Works. La Senza & Henri Bendel are grouped under the “Other” segment.

Revenues

L Brands revenue distribution – Source: Author calculations/L Brands financial statements

While Victoria’s Secret is the main revenue contributor, it is not the main contributor towards the operating income line. While it historically generated more operating income than Bath & Body Works, the latter has overtaken Victoria’s Secret as main source of operating income. Interesting to note is the negative contribution of the other segment.

operating profit
L Brands operating profit distribution – Source: Author calculations/L Brands financial statements

Let’s take a closer look at the different segments.

Victoria’s Secret

Victoria’s Secret is the iconic women’s underwear brand that is sold globally. It is known for its yearly fashion show that is watched by millions of people in more than 200 countries and for its lingerie models, the “Victoria’s Secret Angels”.

Within L Brands, Victoria’s Secret represents three subgroups: Victoria’s Secret Lingerie, Victoria’s Secret Beauty, and Pink. One could easily assume that Victoria’s Secret Lingerie overshadows the other two in value, but it is important to understand that Victoria’s Secret Beauty features 4 of the top 20 fragrances in the US and that Pink represents a USD 3bn+ sales base with a sales/square feet ratio above the Victoria’s Secret’s shops.

As stated above, Victoria’s Secret is not doing too well at the moment due to a number of factors. The problems started when previous VS CEO Sharen Turney decided to leave the company in February 2016. Founder Lex Wesner took over the CEO role again and decided to restructure the business. The business was split up in the three aforementioned segments and each received its own leader. Denise Landman who has over 15 years of tenure at Pink would resume leading the Pink segment. Jan Singer, who worked for more than a decade at Nike (NKE) was hired to lead the lingerie segment and Greg Unis came over from Coach (TPR) to lead the beauty segment.

A more radical decision was the choice to exit the swimwear industry and other product categories, thereby giving up 1bn USD in sales in order to be able to focus on the core products, bras and panties. VS management was convinced that they could offset the operational deleveraging from the swimwear exit by accelerating the growth in underwear sales. Unfortunately, for the management, the restructuring coincided with the surge of new fashion trends. Bralettes, a more fashion inspired type of bra which offers less support than a structured bra quickly gained popularity. The lack of differentiating power within bralettes and the significantly lower average selling price created the additional problem of negative same store sales.

Some of the promotions on a random day – Source: Victoria’s Secret website

This brought Victoria’s Secret in the position where it is being forced to offer discounts after discount in order to keep its topline up. These promotions include lower prices, free items such as panties and totes, large discounts on combinations, reduced basket size to qualify for free shipping or a combination of those things. While this allows Victoria’s Secret to grow its revenues lines, it is putting significant pressure on the margins and the profitability of the brand.

Just have a look at the operating profit contribution of Victoria’s Secret over the past years

Victoria Secret Operating Profit

Victoria’s Secret operating profit – Source: Author calculations/L Brands financial statements

Furthermore the market seems to be worried about increased competition, the high exposure to B- and C-class malls and the promotional environment.

There is no denying that we are in a promotional environment and Victoria’s Secret is not the only one offering large discounts. In a way, this is related to the aforementioned surge in popularity of bralettes. While constructed bras require some sort of design expertise in order to design bras that are both fashionable and offer the necessary support, bralettes target women with an A- or B-cup size and thus require less support. This handicaps Victoria’s Secret as they cannot really leverage their manufacturing expertise within this segment and are left to compete on the fashion aspect. Needless to say, the amount of players that can compete on fashion is far larger than those that can compete on design. This has allowed players such as American Eagle Outfitters’ Aerie (NYSE:AEO) to enter the market. With no clear differentiating aspects other than brand and fashion, it is impossible for Victoria’s Secret to warrant the same premium pricing that it has for constructed bras. The lack of product differentiation has turned the bralettes market in a market that competes on price and promotions. Whether or not bralettes are here to stay is a topic on which I will not comment. If it turns out that bralettes are more fad than fashion then Victoria’s Secret will be a prime benefactor of the return to constructed bras.

As to the exposure to the B- & C-class malls, I think the market may be overreacting a bit. I think the problems that Victoria’s Secret is facing have much more to do with the promotional environment and current fashion trends than with their mall exposure. Obviously, the fall in mall foot traffic is negatively impacting Victoria’s Secret sales but L Brands has repeatedly stated that their B- and C-class malls are actually the most profitable stores that they have. While the performance between these A-malls and C-malls is almost similar, the rent expense of the latter category is far below the level of the A-malls making these stores more profitable. With 99% of the store base cash flow positive, there is no immediate issue. On the long term, it will be interesting to see how the company will position itself. In recent years, Les Wexner has voiced his belief that the mall environment will remain viable several times. According to him, this is just a phase in which the out of favour chains get replaced by more attractive brands. He stated that he would be indifferent or even happy to see the Nordstrom (NYSE:JWN) and Macy’s (NYSE:M) stores get replaced by Tesla (NASDAQ:TSLA) dealerships, restaurants and other places that attract people (source: 2017 Investor Conference). The company has therefore increased investments in its employees in order to maintain the best associates (which have a tenure of more than 10 years on average) . I have found L Brands’ focus on the digital channels to be insufficient in the recent past but I am pleased to hear that the company is now investing more in the e-commerce segment. Especially since management confirmed that online sales are more profitable than in-store sales.

Performance comparison A-malls vs C-malls – Source: Investor Handout L Brands

Some bears also claim that Victoria’s Secret fails to inspire the younger generation shoppers but a recent study by Goldman Sachs actually reveals Victoria’s Secret as one of the most loved brands for Generation Z members and Millennials.

Bath & Body Works

Bath & Body Works is the leading U.S. speciality retailer for home fragrances, candles, hand sanitzers, soaps and moisturizers. While the total revenue number generated within this segment is much smaller than that of the Victoria’s Secret segment, the B&BW operating margin that is nearly twice as high as the one of VS has resulted in Bath & Body works becoming the main contributor to the operating income line.

B&BW Operating profit
Bath & Body Works operating profit – Source: Author calculations/L Brands financial statements

The thing that attracted my attention within this segment is the continuous strong growth in topline. In the first quarter of 2017, B&BW reported $678m in revenue. Now that the total first quarter sales of 2018 are revealed, we can see that the B&BW segment generated $760m in sales, a 12% increase compared to the previous year. I checked the monthly sales calls for all three months included in this quarter and noticed that unlike the Victoria’s Secret segment, the merchandise margin remained flat compared to the previous year in all three months. The increase in revenue is thus fuelled by market share gains and increased demand instead of additional discounting.

It is clear that the recent store remodels with a White Barn integrated in the Bath & Body Works store is paying off its dividends.

When looking at the high price paid by Natura cosmetics (OTC:OTC:NUACF) for the much lower margin struggling Bodyshop, one could start to wonder how much a high margin, fast growing market leader within this segment could be worth. This is something that will be discussed in the valuation section further down in this analysis.

One could argue that B&BW brand name is less valuable than that of Victoria’s Secret and that this segment has less of a moat than the lingerie division but it is also the case that this segment is higher margin and that it is less fashion-dependable. In all cases, it is clear that Bath & Body Works is a very valuable business.

The international segment

The international segment covers those Victoria’s Secret and Bath & Body Works stores outside North America.

The division can be split up in three sub-segments: the wholly owned stores, the franchise partners and the travel retail stores.

L Brands has chosen to own and operate its own stores in the same way as it does in North America in only two foreign markets, the United Kingdom and China. The margins and other financial metrics for these stores are similar to those in the United States. The wholly owned stores represent 20% of the revenues generated in the international segment.

Travel retail represents 20-25% of the international segment’s revenues. The stores within this sub-segment are those that you can find in the various airports all over the world. The stores operate on a wholesale model that generates above company average margins of around 30%. Management believes that revenues within travel retail can increase by factor 2.5 in 5 years’ time (Source: L Brands Investor Meeting 2016).

The majority of the revenue originates from the franchise partners that operate on a royalty basis. L Brands wishes to cooperate with a limited number of partners that can each manage a large geographical area. Currently 33% of the royalties received are used to support the international sales team while 66% ends up in the operating profit line. The interesting aspect here is that there is significant operating leverage potential as you have a certain fixed cost base within the international sales team expense base.

A lot of the international market is still untapped for L Brands. The company stated that Western Europe has the same potential as the United States, yet is it is mainly untapped. As a European, I would agree with this statement. A quick check with my female colleagues confirmed that which I already discovered on my credit card after my partner takes the liberty to use it: women love the Victoria’s Secret brand and its products. Belgians who wish to order Victoria’s Secret goods however have to order it online, pay international shipping fees if they order for less than $120 and then wait for 10-14days before it arrives. It is also impossible to return goods to a store, which creates additional costs if one wishes to return the goods. Therefore I can’t grasp why L Brands hasn’t looked more aggressively for a partner that can serve these high income Western European markets. One can only imagine how much more Europeans would purchase if they actually had the opportunity to visit a store or to order it from a local distribution centre that provides free one-day shipping and returns.

While the profitability of the international segment is currently depressed due to a rapid store build-out in China and due to Brexit-related problems, it must be noted that the operating margin of this segment was in the low twenties before the China expansion. While it may take 2-3 years before start-up costs fade off and the new stores reach maturity, it should be expected that the international segment will be a large contributor to L Brands operating profit growth.

The ‘Other’-segment

This segment features all of L Brands other ventures, which mainly consist of intimates brand La Senza and high end handbag maker Henri Bendel.

These ventures have a combined revenue base of nearly $600m but sadly for L Brands, have a negative operating income of over $160m. This operating loss is not a one off result due to a one time restructuring or anything like that. The past four years, this segment has posted an operating loss with negative mid twenty operating margins.

Other segment Operating Profit
‘Other Segment’ operating profit – Source: Author calculations/L Brands financial statements

While Les Wexner, who has build out the Victoria’s Secret and Bath & Body Works segments almost from scratch, probably believes that he can also turn these brands in billion dollar ventures, the question remains if Victoria’s Secret can afford to continue to invest in these brands. Not only in terms of time and attention but also in terms of financial resources.

While it is probably impossible to eliminate the entire operating loss as the other divisions would have to take over certain overhead costs, let’s assume that the company can reduce the operating loss by $130m by shutting down Henri Bendel and La Senza. This would have lifted FY2017 operating income from $1,728m to $1,858m, thereby raising the operating margin to 14.7% from the actual 13.7%.

Moreover, shutting down these brands is a very unlikely scenario. While these brands are loss making, they do have value for private equity players. Assuming just a 0.25 EV/sales ratio would bring in $150m for L Brands if one assumes that all debt stays with L brands. A sale would also prevent the company from having to take on any restructuring costs.

Afbeeldingsresultaat voor taylor swift henri bendel

Henri Bendel add – Source: Henri Bendel Twitter Page

The question remains whether or not, CEO Wexner will be open to divesting these brands. Without the pressure of an activist investor, I would not count on an early departure from these brands.

Management

Let us have a closer look at management. As stated earlier, the founder Les Wexner currently serves as CEO and he has a 16% stake in the company. This should align his interest with that of the long term shareholders. It could however also be the case that this large stake is preventing activist investors from coming in and pushing for value creation. Elliott Management Corp’s recent win over Vivendi (OTC:OTCPK:VIVEF) in the Telecom Italia (BIT:TIT) case however shows that a large stake from an opposing shareholder does not have to prevent shareholder activism.

I believe there are both good things and bad things to say about Wexner’s management. It is clear that Les Wexner has delivered outstanding results in the past decades and that he has build one of the most renowned apparel brands in the world. Wexner has bought and sold brands at exactly the right time and he has always been on top in regarding to changes in the retail environment. It can be argued however that ever since he took back the reigns in 2016, he made some questionable decisions. Discontinuing the swimwear division to reignite growth in the lingerie division would probably have awarded Wexner with a lot of credit if it had worked out but things turned out quite differently. Victoria’s Secret discontinued its profitable swimwear line but actually saw lingerie sales declining and the company had to resort to aggressive promotions in order to maintain the top line. I am by no means a retail expert but even I know that continued promotions are very harmful for a premium brand on the long term. Let’s face it, when have you seen significant discounting on top luxury brands such as Hermes (OTC:OTCPK:HESAY)?

It is also quite clear that the almost 81-year old Wexner is not the greatest fan of e-commerce and that he has not awarded enough attention to the digital channel. His view on the mall environment may very well be correct but it does bear some risk.

An important question to ask is how long the almost 81-year old Wexner seeks to continue leading the company. His children are in their late teens and early twenties and it is well possible that Wexner wishes to spend more time with his family now that he has reached a more advanced age. Does this mean that he would be more open to a restructuring of the company, including the divestment of La Senza and Henri Bendel as well as a spinoff of Bath & Body Works? Would he be open to a sale of either Victoria’s Secret or B&BW to a private equity player? Given Wexner’s age, these may become very relevant questions in the coming years.

CFO Stuart Burgdoerfer has an excellent reputation as CFO and he has held leadership roles at some of the world’s top companies such as The home Depot (NYSE:HD), PepsiCo (NASDAQ:PEP) and Pizza Hut (NYSE:QSR).

Interesting to note is that Burgdoerfer recently sold a large amount of shares in an open market sale. He sold his shares at around $39 and $42 per share. While insider selling does not necessarily mean that the management is expecting more bad results, we should certainly assume that this is a possibility. The big question however is whether or not we should expect more bad news in the coming months. Was his open market sale triggered by his knowledge of quarterly results coming in at the lower end of the guidance or does he have knowledge of something more severe, such as a dividend cut coming up? I personally expect no large dividend cuts and I would actually prefer if the dividend was lowered in exchange for more share buybacks.

Insider Open Market Activity- Source Bloomberg Portal

Then there are also the CEOs of the various divisions:

Denise Landman: Pink

While Pink has comped negative comparable sales in the last two months, it is undeniable that she has build out a strong brand with many loyal followers. I am confident that she can continue to grow the brand in the coming years.

Greg Unis: Victoria’s Secret Beauty

Victoria’s Secret Beauty has been one of the strongest performing sections within VS ever since the restructuring. Unis has significantly reduced the number of SKUs within the beauty segment and he is well underway to growing the beauty business.

Jan Singer: Victoria’s Secret Lingerie

If I was Les Wexner, I would be starting to doubt Ms. Singer’s management of the brand. While the swimwear division was cut in order to reignite growth in the lingerie division, the performance of the latter division has been lacklustre with no clear sign of improvement. As an investor, I am particularly annoyed by Ms. Singer’s evasion of any and all questions regarding the turnaround. Regardless on whether the question is about average selling prices, margins, volumes, bralette penetration or any other subject, the answer is nearly always the same. According to Jan Singer, it is all a matter of having that customer connection, having the goods that the client needs in every part of her life, having goods that inspire her. Either Singer does not have any answers on these various questions and she herself is struggling to find solutions or she knows the answers but doesn’t wish to reveal them as they don’t paint a pretty picture about Victoria’s Secret’s future. In both cases, her evasive answers are not exactly inspiring any investors to start buying L Brands stock.

Nick Coe: Bath & Body Works

By now, it should be clear that I consider Bath & Body Works to be the gem within the L Brands group. Coe is doing a wonderful job on expanding the business and the recent results have been better than I expected.

Martin Waters: International division

Good old Martin, the chap with the fancy British accent for those who listen to the calls, is the person in charge of the international division of Victoria’s Secret and Bath & Body Works. While I would like to see a more rapid roll-out of the brands in areas such as Europe, I find Waters to be more knowledgeable and open on all investor calls than Ms. Singer. I would give Martin Waters the benefit of the doubt.

Positive to note is that all the management members are very aligned with the long term shareholders as all executives need to hold three time times their base salary in L Brands stock and the compensation committee has shown to significantly reduce compensation when the results are disappointing.

The financial picture

One of the main questions that investors have at this point is whether or not the dividend is safe. It will be hard to answer before we get more financial details when the Q1 results come out.

Free Cash Flow Overview – Source; L Brands Investor Presentation

As you can see in the table above, the dividend is covered but it was only barely covered in 2017. For 2018, L brands guided slightly higher capex spending of around $750m but it also guided towards $900 million in free cash flow (L_Brands_Q4_2017.pdf) which is more than enough to cover the $686m in dividends. One could start to wonder on whether the Q1 results coming in towards the lower end of the guidance will have any impact on the free cash flow guidance. In any case, it would require a major adjustment for the free cash flow to fall to a level that would require a large dividend cut.

It should also be taken into account that free cash flow will rapidly rise again once the international segment stops its aggressive China expansion.

Let us also have a quick look at the financial leverage

Debt Leverage Overview – Source; L Brands Investor Presentation

When looking at the pure financial net debt, you can calculate that it will come in at around 2.05 times net debt/EBITDA assuming net debt of $4,280m and a 2018E consensus EBITDA of $2,085m.

At the beginning of 2018 lease adjusted net debt/EBITDAR was 3.44x or 4.0x if you use adjusted debt/EBITDAR.

Valuation

Now it’s time to try and put a price on the stock.

In my model I have opted to assume that Victoria’s Secret only makes a minor recovery. I am sure that L Brands bulls will consider my growth numbers far too conservative but if I can prove that L Brands is undervalued using very conservative estimates, then readers should be able to imagine where the stock price could go on a larger recovery.

I assume Victoria’s Secret store sales decline by 4% each year while direct sales grow by 20% in FY18, 15% in FY19, 12.5% in FY20 and then 10% in the outer years. L Brands guides for mid- to high teens direct sales growth in their multi-year plan and VS direct sales grew by 23.4% in Q1 2018.

I expect that operating margins for the segment take a nosedive to a multi-year low of 9.5%. and then steadily recover to 12.5% in FY22. This would assume that VS operating margins never reach the 12.6% operating margin that VS had in its horrible FY17 year, let alone the 18% realized in FY15. I thus consider my estimates to be very conservative.

For B&BW I assume that stores basically grow sales by 3% each year while online sales grow at around 10%. I model slight operating margin pressure to incorporate the possibility of more discounts in this segment. In reality the operating leverage on the higher sales number could easily offset this.

Management guides the international segment to grow low- to mid-twenties percent but I choose to be a bit more conservative in the outer years. I take operating margins of 13.5% in the outer years regardless of the fact that this segment had low twenties operating margins before the China expansion. This should more than offset any bear argument that VS margins have significantly declined since then.

In my model I assume that the other segment does not get divested and that it remains loss making over the entire forecasted period.

I forecast less stock buybacks than guided by the company and less than historically bought by the company as I assume that the company will not want to raise the financial leverage and that there may not be as much cash available after maintaining the dividend.

Then comes the tricky part, what multiple should a company like L Brands be trading at? Looking at trading levels in the past years a 18x-20x multiple should be warranted. Retailers with less known brands and lower margins such as American Eagle Outfitters (NYSE:AEO) trade at 17.8 times the actual earnings. Therefore I believe that a 15x multiple for L Brands is a conservative pick.

Applying that 15x earnings multiple on the $4.37 earnings expected in FY22 brings us to a $65 in 5 years time (I assume that L Brands bulls would actually be very disappointed if L brands only reaches $65 in 5 years time). Together with the assumption that the dividend remains stable at $2.4/share, this would result in a 20% IRR based on Friday’s closing price of $32.33.

Valuation
L Brands Valution – Source: Author’s Own Calculations

Another way to look at the valuation is by looking at the value of Bath & Body Works within L Brands.

Natura Cosmetics bought The Body Shop for 18 times EBIT (Bloomberg displays The Body Shop’s EBIT at 54.8m as last reported result) . Applying that same multiple on B&BW’s FY18E EBIT would value it at an enterprise value greater than the entire L Brands enterprise value.

Valuation 2
Bath & Body Works Valution – Source: Author’s Own Calculations

Using a more conservative EV/EBIT multiple of 10x, in line with American Eagle Outfitters’ 10.64x, followed by subtracting half of L Brands net debt results in an implied share price of $26.63. One could make the case that B&BW should trade at a higher multiple than AEO as B&BW is growing faster, has much higher margins and is the clear leader in its segment, but once again I prefer to use the necessary level of conservatism.

Now that we have the conservative value of Bath & Body Works, let us see what that implies about the value of Victoria’s Secret.

L Brands Equity Value

$9,014m

B&BW Equity Value

$7,510m

Implied VS Equity Value

$1,504m

Remaining Net Debt

$2,150m

Implied VS Enterprise Value

$3,654m

Victoria’s Secret FY18E EBIT

$708m

Implied VS EV/EBIT multiple

5.16

Implied Victoria’s Secret EV/EBIT multiple – Source: Author’s Own Calculations

Even when using my very bearish Victoria’s Secret FY18E operating profit forecast, it becomes clear that given the value of B&BW, Victoria’s Secret would be trading at a mere 5.16x EV/EBIT multiple. Additionally, it assumes that the La Senza and Henri Bendel brands are worth nothing as otherwise you would still have to subtract their value from this already insanely low valuation. I also did not include the operating profit of the international division for both VS and B&BW as this is currently near break-even level but in 1-2 years this will be an asset that is significantly contributing to L brand’s bottom line.

Applying a very conservative 8x EV/EBIT multiple on my very depressed VS EBIT forecast, would still indicate a share price of $12.46 when excluding the international sales.

Valuation 3
Implied Victoria’s Secret Share Price – Source: Author’s Own Calculations

Combining the derived share prices of B&BW and VS results in a $39.09 combined share price, more than 20% above Friday’s close. This is also neglecting any value in the La Senza and Henri Bendel brands as well assuming no recovery in the VS brand and excluding the entire international division for both Victoria’s Secret and Bath & Body Works.

So why would anyone invest in L Brands? The true value of Bath & Body Works is not reflected within L brands market cap. A spin-off or sale could realise this value. L Brands has the optionality to divest its La Senza and Henri Bendel brands, thereby bringing in extra cash in addition to boosting its operating profit. The company currently pays a covered 7.42% dividend. A performance turnaround in the Victoria’s Secret brand due to either a shift back to constructed bras or due to a reduction in discounting by competitors could result in a major upswing for the L Brands stock (just see American Eagle Outfitters price graph). The International segment has significant growth prospects. Victoria’s Secret may opt to re-enter the swimwear market. What are the main risks to this investment case? Margin pressure at Victoria’s Secret may get worse, resulting from additional discounting. Continued promotions may dilute the Victoria’s Secret brand name and the company may never be able to return to the position of the undisputed leader in intimate’s apparel. The case stands and falls with the performance of Bath & Body Works. If performance at B&BW worsens significantly then the dividend may no longer be sustainable. The company may maintain its mall exposure, increasing its vulnerability to decreasing mall foot traffic. Catalysts

On the 24th of May, L Brands will reports its Q1 number. It will be interesting to see the operating margins of the different segments. In the April sales report, L Brands stated that earnings per share would come in towards the lower end of the previous guidance. It will be important to see if management gives any further details. Was it due to lower share repurchases or higher start up costs in China or was it due decreasing profitability within the Victoria’s Secrets segment? The most important question that the investment community will have is whether or not L Brands will change its full year guidance. The stock price is bound to show strong movement, whether it be increasing or decreasing. Therefore it may be optimal for real bargain hunters or for those who want to play it safe, to wait till the earnings release before starting a position.

Conclusion

L Brands is often considered as a synonym of Victoria’s Secret and things aren’t going that well for Victoria’s Secret. Therefore, the L Brands stock has taken a dive of nearly 50% this year. While a recovery of the Victoria’s Secret segment would be the fastest way back up from this point, I don’t feel comfortable predicting such a recovery any time soon. I am convinced that the potential is there but in a world where retailers are struggling, it is impossible to say when exactly the promotional environment will ease. I however believe that L Brands has multiple other levers to value creation. First of all, the value of Bath & Body Works, a fast growing higher margin segment is not reflected in the stock price. Then there is the possibility to divest the loss making La Senza and Henri Bendel brands which could help strengthen the balance sheet and significantly raise the group’s operating income. Another long term contributor will be the International division that is currently not contributing much to the bottom line due to large expenses made in the build-out of the China division. As soon as these new stores start generating revenues, the company will get a large boost from the international division. While a lot of these initiatives are 2-3 years away from being delivered or may not be realised at all depending on the choices that management makes, I believe that we are currently at a price level that doesn’t take any of the aforementioned catalysts into account. L Brands is owner operated with all executives owning a large amount of stock in comparison to their base salary and compensation schemes are focused on long term results. Nevertheless, I would welcome an activist investor that could encourage more value creation at L Brands. In the meantime, Investors can collect a 7.4% dividend yield and wait till the situation plays out. There is a small chance that the dividend gets a small cut but I do not expect a large slash in the dividend.

While this is not the usual type of investment that I make, I have decided to start a small position in L Brands after last Thursday’s correction. I will eagerly wait on the quarterly results and earnings call in order to decide on whether I want to build this up to a full position.

Disclosure: I am/we are long LB.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The Market In 5 Minutes: Trump-ZTE, Xerox-Fujifilm, Steve Eisman And More

The biotech sector saw a modest uptick this week amid a slew of biotech earnings news flow and a deal announced in the space: Link

Retailers have shown greater capital discipline in the hopes of re-invigorating their businesses, but investors must take a cautious stance on the sector, according to Morgan Stanley: Link

President Donald Trump said he was working with Chinese President Xi Jinping to keep ZTE Corp. in business, throwing an extraordinary lifeline to the Chinese telecommunication giant that has been laid low by U.S. moves to cut off its suppliers: Link $

Xerox Corp (NYSE: XRX) said it will back out of its merger deal with Fujifilm Holdings Corp. as it reached a new settlement with two of its biggest shareholders, the latest twist in a months long tug of war over the future of the iconic American company: Link $

U.S. Secretary of State Mike Pompeo said on Sunday that Washington would agree to lift sanctions on North Korea if the country agrees to completely dismantle its nuclear weapons program, a move that would create economic prosperity that “will rival” that of South Korea: Link

HSBC Holdings Plc said on Monday it has performed the world’s first trade finance transaction using a single blockchain platform in a push to boost efficiency in the multi-trillion-dollar funding of international trade: Link

Elon Musk has said the “short burn of the century” is coming soon to investors betting against Tesla Inc (NASDAQ: TSLA). He’s rapidly losing top deputies to help him deliver on that prediction: Link $

Steve Eisman, the Neuberger Berman Group money manager who famously predicted the collapse of subprime mortgages before the 2008 financial crisis, recommended shorting Deutsche Bank AG (NYSE: DB) shares: Link $

Merrill Lynch loaded the dice in Las Vegas — and cheated a local female high roller out of at least $1 million in commissions, according to a gender discrimination lawsuit filed recently: Link

ECONOMIC DATA
St. Louis Fed President James Bullard will speak at 9:40 a.m. ET.
The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.
ANALYST RATINGS
Canaccord upgraded Thomson Reuters (NYSE: TRI) from Hold to Buy
Jefferies upgraded Tailored Brands (NYSE: TLRD) from Hold to Buy
Compass Point downgraded Hilltop Holdings (NYSE: HTH) from Buy to Neutral
Deutsche downgraded Hostess Brands (NASDAQ: TWNK) from Buy to Hold

This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.

6 Most Important Things in Business Today

Many investors believe the price of oil will go higher. According to Reuters:

Oil futures prices have soared past three-year highs, OPECs deal has cut millions of barrels of inventory worldwide and investors are betting in record numbers that prices could rocket past $80 and even hit $90 a barrel this year.

But physical markets for oil shipments tell a different story. Spot crude prices are at their steepest discounts to futures prices in years due to weak demand from refiners in China and a backlog of cargoes in Europe. Sellers are struggling to find buyers for West African, Russian and Kazakh cargoes, while pipeline bottlenecks trap supply in west Texas and Canada.

CBS Corp. (NYSE: CBS) sued its largest shareholder as the pressure on it to merge with Viacom Inc. (NYSE: VIAB) increases. According to The Wall Street Journal:

CBS Corp. moved to break free from the Redstone familys grip and thwart what it fears would be a forced merger with Viacom Inc. escalating a yearslong power struggle over the fate of the two media giants.

CBS filed a lawsuit Monday against the Redstones and their family holding company and invoked a little-known provision in the CBS corporate charter that it claims would allow it to issue voting shares to all stockholders, significantly diluting the voting power that the Redstones have held over CBS for nearly two decades.

After several accidents, Tesla Inc. (NASDAQ: TSLA) looked at changing its autopilot technology. According to The Wall Street Journal:

One idea was sensors to track drivers eyes to ensure they watch the road. Tesla executives questioned the costs of such a system, which typically includes a camera and infrared sensor, and whether it would be ready for deployment, these people said. Another concern was whether the sensors could reliably detect drivers of varying heights.

Another measure the Autopilot team considered was incorporating sensors into the steering wheel to monitor whether drivers hands were touching it at all times, these people said.

Founder Elon Musk may change Tesla’s management structure. According to Bloomberg:

The Tesla Inc. management ranks that Elon Musk told employees hes flattening had already been raising eyebrows by how quickly it was thinning out.

Musk announced a thorough reorganization in a memo to employees Monday, saying Tesla was changing its structure to improve communication, combine functions and get rid of activities that arent vital to the success of the companys mission. Last week, a spokesman confirmed one of only four executive officers named in the companys recent proxy statement was taking time away from the company to recharge.

New taxes set by Seattle could affect a number of local companies, which include Amazon.com Inc. (NASDAQ: AMZN). According to CNBC:

Seattle’s city council on Monday approved a new tax for the city’s biggest companies, including
Amazon, to combat a housing crisis attributed in part to a local economic boom that has driven up real estate costs at the expense of the working class.

Amazon, the city’s largest employer, said after the vote that it would go ahead with planning for a major downtown office building that it earlier had put on hold over its objections to a much stiffer tax plan originally proposed.

Sears Holdings Corp. (NASDAQ: SHLD) took more steps to sell Kenmore. According to CNNMoney:

Sears is getting serious about selling Kenmore.

The struggling retailer announced Monday that it had formed a “special committee” to explore the sale of its in-house appliance brand.

The move comes less than a month after Sears CEO Eddie Lampert wrote a letter to the board urging it to sell the brand. He offered to buy it himself if necessary, along with other assets.

Tesla, Inc. (TSLA) Stake Boosted by Sandy Spring Bank

Sandy Spring Bank grew its holdings in Tesla, Inc. (NASDAQ:TSLA) by 66.2% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 969 shares of the electric vehicle producer’s stock after purchasing an additional 386 shares during the period. Sandy Spring Bank’s holdings in Tesla were worth $258,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of TSLA. Dimensional Fund Advisors LP increased its stake in shares of Tesla by 1.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 102,250 shares of the electric vehicle producer’s stock valued at $34,876,000 after purchasing an additional 1,938 shares during the last quarter. DnB Asset Management AS increased its stake in shares of Tesla by 5.3% in the 4th quarter. DnB Asset Management AS now owns 13,820 shares of the electric vehicle producer’s stock valued at $4,303,000 after purchasing an additional 699 shares during the last quarter. Daiwa SB Investments Ltd. increased its stake in shares of Tesla by 41.3% in the 4th quarter. Daiwa SB Investments Ltd. now owns 1,766 shares of the electric vehicle producer’s stock valued at $550,000 after purchasing an additional 516 shares during the last quarter. Appleton Partners Inc. MA bought a new position in shares of Tesla in the 4th quarter valued at $274,000. Finally, Private Capital Advisors Inc. bought a new position in shares of Tesla in the 4th quarter valued at $318,000. Institutional investors own 58.22% of the company’s stock.

Get Tesla alerts:

In other Tesla news, CEO Elon Musk acquired 33,000 shares of the stock in a transaction dated Monday, May 7th. The stock was purchased at an average cost of $298.50 per share, with a total value of $9,850,500.00. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, Director Kimbal Musk sold 1,875 shares of Tesla stock in a transaction dated Thursday, April 5th. The stock was sold at an average price of $300.00, for a total value of $562,500.00. Following the completion of the transaction, the director now directly owns 150,208 shares of the company’s stock, valued at $45,062,400. The disclosure for this sale can be found here. Insiders have sold a total of 4,728 shares of company stock worth $1,502,822 over the last ninety days. Company insiders own 22.80% of the company’s stock.

Shares of Tesla opened at $301.06 on Friday, according to Marketbeat.com. The stock has a market cap of $52.10 billion, a price-to-earnings ratio of -26.22 and a beta of 1.11. Tesla, Inc. has a 12 month low of $299.15 and a 12 month high of $308.74. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.56 and a current ratio of 0.74.

Tesla (NASDAQ:TSLA) last announced its earnings results on Wednesday, May 2nd. The electric vehicle producer reported ($3.35) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($2.40) by ($0.95). The company had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.30 billion. Tesla had a negative return on equity of 40.72% and a negative net margin of 18.77%. The firm’s quarterly revenue was up 26.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($1.33) earnings per share. equities research analysts forecast that Tesla, Inc. will post -10.94 EPS for the current year.

TSLA has been the topic of several recent research reports. ValuEngine downgraded Tesla from a “sell” rating to a “strong sell” rating in a report on Saturday. Zacks Investment Research raised Tesla from a “hold” rating to a “buy” rating and set a $329.00 price objective on the stock in a report on Tuesday. Bank of America set a $180.00 price objective on Tesla and gave the company a “sell” rating in a report on Thursday, May 3rd. Piper Jaffray set a $369.00 price objective on Tesla and gave the company a “buy” rating in a report on Thursday, May 3rd. Finally, KeyCorp reissued a “hold” rating on shares of Tesla in a report on Thursday, May 3rd. Twelve investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eleven have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $304.63.

About Tesla

Tesla, Inc designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers sedans and sport utility vehicles.

Institutional Ownership by Quarter for Tesla (NASDAQ:TSLA)

Two Billionaires Butt Heads Over the Economic Moat

Elon Musk has added competitive moats to the growing list of things he thinks are lame, but Warren Buffett begs to differ. As the two billionaires challenge each other, we ask the fundamental question: Are moats still important to a high-quality business?

In this episode of Industry Focus: Consumer Goods, Vincent Shen is joined by senior Motley Fool contributor Asit Sharma as they explain what investors need to know about economic moats beforepivoting to the candy industry as an example of one business where moats remain as important as ever.

A full transcript follows the video.

This video was recorded on May 8, 2018.

Vincent Shen:Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. It’sTuesday, May 8th, and I’m your host, Vincent Shen.

Rounding out the cast for today’s consumer and retail discussion,we have senior Motley Fool contributor Asit Sharma, who’s beaming into the Fool HQ studio via Skype. Hey, Asit! Hope all’s well!

Asit Sharma: All is great, Vince! Youmake that sound so technologically advanced. I almost feel like I’m going to materialize in the studio.

Shen:That would be cool. At some point, maybe, we’llhave you hologram into the studio sitting next to me. It’ll be amuch more fun experience that way, for me, at least.

Sharma:Absolutely.

Shen:I’m going to thank you right off the bat forbringing the main topic of this episode to my attention.I hadn’t been following this storyas much. Since you brought it up, it’s come up in the editorial pod and among some of the other Industry Focus hosts, they’ve talked about it.

We’re reaching outside of the consumer and retail sector just for inspiration to kick off this conversation. Asit, please chime in with any thoughts or color you want to add aswe walk through some of the background for the show and the topic today.

Last week,Tesla (NASDAQ:TSLA)reported its first quarter earnings for 2018. There was, of course, a call with analysts to go over the latest results. During the Q&A portion of that call, company founder and CEO Elon Musk spenta few minutes answering typical Wall Street analyst questions before he eventuallylost interest and passed the mic toGalileo Russell, a follower of the company who runs a technology and investing-focused channel on YouTube.

At one point on the earnings call, Galileo starts asking about Tesla’s Supercharger network andwhy the company is open to collaborating with competitors, in terms of letting competitors into the Supercharger networkso they can access Tesla’scharging stations. The company’s built something like over 1,200of them around the world. That’s some of the context ofwhere these comments begin. I’m going to read you the quotes from the earnings call.

This is from Galileo. He says:

I’m just wondering why that isn’t a moat, because as a long-term investor,I feel like the charging infrastructure you guys have built wouldtake years and millions of dollars for another brand to replicate. So I’m just curious about the strategic thinkingbehind opening that up versus keeping it closed.

And Musk responds:

First of all, I think moats are lame. I mean, they’re like nice and sort of quaint in a vestigial way, but if your only defense against invading armies is a moat,you will not last long. What matters is the pace of innovation. That’s afundamental determinant of competitiveness.

Lots ofElon Musk fans and Tesla investors here at the Fool, but at the same time, we have lots of fans and followers of the person who coined the idea of acompetitive or economic moat, and that’s the legendary Warren Buffett.

As it turns out,the annual Berkshire Hathawayannual meeting took placelast weekend, too. At that event, Musk’s comments on moatscame up, so Buffett actually responded. He said, “Certainlyyou should be working on improving your own moat and defending your own moat all the time. And Elon may turn things upside down in some areas. I don’t think he’d want to take us on in candy.”

If you’re wondering why candy entered the conversation,it’s because See’s Candies is part of the Berkshire Hathaway portfolio. They acquired that company, I think, almost 50 years ago. And Buffett has mentionedmultiple times before how See’s is very successful thanks in part to the moat it has from a very strong brand, very loyal customers.

Musk ends upmaking some tongue-in-cheek announcements on Twitterthathe’s going to start a candy company to answer Buffett’schallenge. I’m not going to pay too much attention to some of the shenanigans that come up insocial media. That story ultimately leads us nicelyto our main discussion for today, where we’ll first take a closer look at the concept of aneconomic moat before using the candy industry itself to illustrate how wide some moats can still be, even in a time when we think about innovation and disruption taking placeacross all industries.

Break it down for us, Asit. The moatterminology has been around for 20 years. The concept itself, I think, even longer than that. What’s the core idea behind a moat,and why does Buffett really prioritize it when heevaluates a business?

Sharma:First of all, Vince,it’s a lovely visual and easy metaphor to grasp,the idea that your castle has one barrier, the last line of defense,which is the stream of water which can be quite wide, or it can be narrow. It’svery easy to translate that into economics. Aneconomic moat is a competitive advantage orseries of advantages that allows acompany to earn outsized profits over time.

Basically,over the years, these have fallen into just a few categories, and I’ll list a few for our listeners. Creatingreal or perceived product differentiation is said to be an economic moat. Think of the Big Mac. That was avery different product back decades ago when it was first introduced. It created a lot of differentiation in that fast food burger marketplace. Second,having low cost, being the low-cost leader. BeforeAmazonstarted ramping upseveral years ago, Walmart,for decades, had an advantage as a low-cost retail leader.

Locking in customers bycreating high switching costs. Agreat example of this is Gillette. You often hear about the razor and blade model, andhow great it is when a customer buys a razor, then they’re locked into buying a company’s blades. Gilletteenjoyed this advantage. Once you invest in that razor,you don’t want to spend, in today’s dollars, another $15 to $20, for the competitor’s razor. You’re stuck with the blades, because your investment is sunk. Wemight return to this if we have time this episode,because that model, there’s a great example of disruption inDollar Shave Club.

Andfinally, locking out competitors bycreating high barriers to entry. For me, I think Appleis a great example of this, because the iPhone was a blend of functionality, brand cachet, really high technology when it wasfirst introduced. That produced a sustainable competitive moat for Apple forseveral years.

These are the big categories,illustrations of what creates what Buffett thinks of as an economic moat. I just wanted to refer listeners, I used a condensed summary fromMorningstar. There’s so much on moats, and we at The Motley Fool write about this. These few bullet points, I grabbed them from Morningstar. They’ve built a business around economic moats. It’sone of the criteria Morningstar uses to evaluate stocks. Very few companies that I like outside The Motley Fool that help investors, but Morningstar is pretty good.

Shen: OK.I will say, personally,I like looking at moats as well. In a way, theymanage to present both sides of a story.

On one hand, they encompass a lot of those advantages that you mentioned that a company can leverage year after year for those outsized profits, a sustainable competitive advantage. But on the flip side, at times, when there’s innovation or disruption, they can highlight the path to success that an upstart playertakes advantage of to grow quickly and poach market share.

Aneffective moat will help a company grow and remain profitable, and that will inevitably attract new entrants whomight want a piece of that pie. And over time,if an upstart itself becomes a major entrenched competitor, things comefull circle as it builds out its own moat, only to be challenged eventually by some other innovative, disruptive business.

We talked about a few examples, some theoretical ones and some real-world cases, too, as you were walking through that, Asit. Are there any other big instances or examples of moats that you’d like to call outbefore we dive into this specific example with the candy industry?

Sharma:Let’slook at the consumer goods industry in general, andthen we will drill down.

Shen:Sure,I think that’s a great idea.

Sharma:Justgrabbing market share in a particular business becomes its own economic moat. Wewon’t talk about Mondelz International too much in this episode,but they actually are a serial acquirer of candy brands and chocolate companies. Think Cadbury, think Oreo cookies. Thatitself becomes a business that has a moat around it,simply because they have the cash to pony up and build the market share, which makes it hard for other entrants to come in and disrupt their business. So that’s one last modelwithin consumer goods I wanted to point out before we jump in.

Shen:Sure.I’ll even mention that last week, we looked at an industry on this segment for Industry Focus with wireless carriers, that,as an example, you have the four major wireless carriers. They all essentially share this region. They’ve managed tobuild a giant wall around it, because they all benefit from the fact that there’s a veryhigh barrier to entry for this industry in that it’s a massive investmentrequired to build out a nationwide network.

But each of the carriers, if they each have their own castles with moats around them,sticking with that visual cue, theyfill them differently. In the past,for example, some carriers had early termination fees, longcontract terms, high switching costs to prevent customers from changing their service to a competitor. Now,you see some smaller competitors like T-Mobile, they’ve reduced that friction in switching providers. They’ve shrunk that part of the moat. Inreturn, T-Mobile has widened its own moat differently byusing that branding built around,for example, its Un-Carrier reputation. So you can see how dynamic all that can be.

Focusing now on the debate between Musk and Buffett,the questions we’re really looking at are: 1) is the moat around candy specifically as wide as Buffett thinks, given his reference to See’s Candies? And 2) can Musk really disrupt the industry enough to overcome that moat,if he were to seriously pursue anopportunity like that. He seemed to be tongue-in-cheek joking earlier, but it’d be interesting to see what somebody like him could come up with, given his track record with PayPal, SpaceX, Tesla.

Let’s put the idea of moats to the test: Isthe candy industry actually that tough to crack? What are your thoughts here, Asit?

Sharma:First of all, I want to just point out to listeners how shrewdly intelligentWarren Buffett is. He’s the one who brought upthe idea of Musk challengingBerkshire Hathaway’s moat in candy. He picked the hardest business with, maybe, the widest moat. I’m going to walk through why I think it’s a brilliant example.

Although there may be, for every castle, a knightsitting on a charger pondering on the other side of the moat how to get over that moat. Althoughthat may be true, as you point out, Vince,every castle is different, every moat is different. To me, for the sake ofdefinition, let’s just say that anestablished candy company of any size isgoing to have above what we call the middle market revenue. Myround number is, if you can make $20 million annually in revenue or above, that’s a good working definition for this argument. Now, candy companies,think about it, they sell one of the cheapest commodities on Earth to one of the most finicky customer groups you can imagine, and that’s children — I shouldsay, of all ages. Bear that in mind. It typically takes years, actually decades, to establish a candy brand at scale.I talked aboutMondelz, how they have billions at hand to acquire companies. Onlyyesterday, they forked over $500 million to acquireTate’s Bake Shop. If you’ve got those billions, that’s great. But if you don’t, you have to establish your brand.

Why is it so hard to get to scalein the candy industry? There’s areally problematic cycle in candy, and that’s the cycle of the fad. A fad can last seven years, it can last ten years, it can last 15 years. The margins in candy are so thin, they don’t really justify investing in fads. Let’s say Vince and I decidewe want to go into business together and form acandy company. We go to Wall Street. Despite all ourother fantastic credentials, and whatgreat salesmen we are, [laughs]I think the folks at the other end of the table are going to say, “You know,we don’t want to put $30 million into this project,because this brand that you’ve come up with sounds great,but it may only run for 12 years. And that capital investmentisn’t worth it for us.” Few want to risk millions in capital just to break in via innovation.

Now, the end user, the child or the kid of any age, isreally capricious in his or her tastes. So to break into this business,you have to copy what works. Here’sthe catch with that: Kids like what they like. They don’t respond to close copies of products the way adults do. Adults are thinking about how much something costs, about whether the ingredients are wholesome or not. There’s a whole range of factors thatanyone who’s an adult will consider. A kid loves a Snickers bar and doesn’t want anything different.

Maybe a little bit later in this segment, Vince, we’ll talk about how oldsome of these candy companies are. It’s just another barrier to entry. The suite of candy bars that’s in a grocery aisle that you see when you check out is the same as when I was a kid, and I’ve got a lot of grey on me. I’m sure some of our listeners have anequal amount of grey on them. That hasn’t changed, except for some innovation.

I’ll flip it back to you, Vince.I’d like to talk about the economics of the industry in just a bit, but those are the majorqualitative factors I see. It’s extremely difficult to cross the moat that a candy company owns.

Shen:Yeah.I’ll just say, beyond what you mentioned in terms of very finicky, fickle consumers there, if you’renot one of the industry leaders that has established relationships with your distributors,you have shelf space already at the store, you have to navigate so many things in terms of commodity prices,packaging, the distribution to thousands andthousands of different convenience stores, vending machines,grocery stores, to actually reach a serious scale in the space like you mentioned, beyond that middle market size of $20 million or more in revenue. That’s a really, really tough challenge.

Then,moving on a little bit tosome of that innovation, disruptionelement of it, in terms of what we’re actually seeing in the candy industry, and what somebody who’s a visionary and has some crazy idea for the industry, what they’re grappling with. This is slightly more anecdotal evidence, butI’ll just start by highlighting for listenerswhat the candy industry itself considers to be innovation.I found the 2017 Innovative Award winnersfrom the Sweets & Snacks Expo and theNational Confectionery Association. A fewof the nominees for the chocolate categorylast year were: Caramel Chocolate M&M’s fromMars,Reese’s Crunchy Cookie Cups from TheHershey Company(NYSE:HSY), Oreo Chocolate Candy Bars fromMondelz, which we’ve tried here at Fool HQ, andKinder Joy from Ferrero U.S.A.

The M&M’sactually ended up taking that award. And I don’t know about you, Asit, butcaramel chocolate M&M’s,difference in flavoring, otherwise it’s not something that’s all that different in terms of the final product to me. If those are what the industry nominated as some of the most innovative newproducts for that category, thattells me you don’t have as much space there to disrupt with some crazy new product. Itdoesn’t seem like that would be such an easy step. And whileI do think a major consumer goodscompany could launch an attack on a candy company and eventually overcome part of its moat,I think it comes at a great cost, and there’s no guarantee of long-term success,kind of what we mentioned in terms of the fadshaving a finite life. That would explain whymost companies do acquire their candy businessesinstead of building them up organically.

I’ll pass it back to you to cover some of the examples that you found with candy companies and how far back their origins reach, then we’ll start closing out the discussion with some final thoughts on the moat situation here.

Sharma:Sure. Interesting, theexamples that you cited, Vince, would be familiar to anybody. We talk about staying power, the difficulty of getting into the business, andhow hard, once you’re an incumbent, it is to dislodge you.Mars Bars, Snickers, Three Musketeers, these are all owned by Mars International. Allthese brands were introduced in the 20s and 30s — that is, the 1920s and 1930s. That company was founded in 1911.See’s Candy, which is Warren Buffett’s/Berkshire Hathaway’s chocolate company, chocolates in a box, founded in 1921.Tootsie Roll Industries (NYSE:TR), founded in 1896.Hershey’s, 1894.Haribo, which, if you love jelly beans,that’s very familiar to you, 1921. And one more, Ferrero, which is the Italian chocolate giant, wasformed in 1964.

The issue that anentrant has coming into this business, and why these companies are so fierce to compete against — one is the economics are extremely difficult.I did a Google search yesterdayjust for fun on Tootsie Roll. I came up with a five-pound bag of Tootsie Roll midgees candy — and this is sold off of Amazon — it’s 760 pieces for$5.99. Now, bear in mind,this is through Amazon, meaning thereby you’regetting it cheaper than you would in the grocery store.Tootsie Roll Industries makes a 16% net profit each year. Butthis product is selling for a unit price of $0.007. That meansthe selling price for each of those midgees is seven-tenths of one penny.

And beneath all of that, supply chain mastery, manufacturing prowess,distribution expertise, which Vince mentioned, that you can imagine is a whole other realm of economics expertise. That is,there are two primary ingredients in the candy industry: sugar and cocoa,which are phenomenally hard to keep track of in your own costs. If you enter this business, you have to be a master at hedging commodities, hedging cocoa, hedging corn syrup, hedging sugar. And you have to be an expert at making sure that what you purchase in quantity gets consumed. Ifyou read the 10-K reports, the year-end reports, of Hershey’s or Tootsie Roll Industries, both of which are publicly traded, you’ll find that each year, they finish with zero backlog. That means they’reultimately extremely precise at predicting how much productneeds to go to distributors so that major companies likeWalmart can keep the shelves supplied but no more. So again, this is a business that’s so much more complex than itmight appear on the surface.

Just to recap this idea offiguring out what might sell and then being able to parlay that over decades,I mentioned the Ferrero chocolate company in Italy, the chocolate empire that’s very popular in Europe. They made their money, they built their whole business, on one product,which was the invention of Nutella, which again, is a taste you develop in childhood and for many, stays with you throughout your lives.Asingle product. Sometimes, to me,it seems like blind luck. Youcome up with a great product. Those of you, again, who have a little bit of grey on you will remember the commercials from the 70s and 80s. Your chocolate’s in my peanut butter, your peanut butter’s in my chocolate. A serendipitous combination of ingredients leads to a hitproduct that’s so difficult to create in real life,in terms of experimentation and innovation. If thathappens to you, run out, get the capital, and then build a company that will last for decades upon decades. But again, it’s not a business that, in my opinion,even if you’re Elon Musk, you can just say, “I’mgoing to start a candy company and I’m going to challenge the giants.”

Shen:Yeah. Wrapping upour discussion, then, I think there’s good reason why so many people here at the Fool and other long-term, Foolish-minded investors see a lot of strength and value in companies that have built up economic moats. Wealso know that companies should continue to be working to widen their moats or fill it with flames instead of alligators, or whatever it is, in terms of what differentiates that as competition, thebusiness environment evolves. And even for the candy companies, a mile-long moat might mean little if the castle, for example, itself is shrinking because consumers are moving away from sugary snacksas a result of health and diet consciousness. There’sa lot of moving pieces there.

But I think, if you’re an investor,you’re looking for strong companies to add to your portfolio, that’s a really good part of thedue diligence process, to consider,what are the challenges for that companyin terms of competition? Whathelps them stand apart? Is that sustainable over time? Doesthat allow them to generate outsized profits and sustain that year after year? If they can do that, that’ssomething you should be paying closer attention to.

Asit,any final comments from you before we roll up here?

Sharma: I just wanted to reiterate what you’re saying, Vince. If you look at The Hershey Company, they boughtAmplify Snack Brands last year. That gets them an entry into the salty snacks business. That’sthe maker of SkinnyPop Popcorn. Moats are always widening, they’re always narrowing.

Thepurpose of people like Elon Musk is to be the native disruptor, that knight on the charger who sitscontemplating the moat. The purpose of people like Warren Buffett isto be the owner of the castle inside, figuring out how he can make that moatharder to cross. And ultimately, that dynamic produces great companies to invest in.

At the end of the day, they each have a point. But on this particular issue, wehold them to the Twitter and Warren Buffett’s annual meeting interview, in which he gave the quote that you first read,I believe that Buffett ultimately is right. In the candy business, get a moat,it’s yours to keep, just work on widening it. But there are other businesses, as we’ve seen,especially technology-oriented businesses, whatElon Musk is doing at Tesla, those moats are inherentlysusceptible to innovation and being attacked.

Shen:Alright. Thanks a lot, Asit, for joining us today!

Sharma:A pleasure!

Shen:People on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against any stocks mentioned, so don’t buy or sell anything based solely on what you hear during the program. Thank you for listening and Fool on!

Top 10 Value Stocks To Own For 2019

Investment company Carl Icahn buys Hertz Global Holdings during the 3-months ended 2016-12-31, according to the most recent filings of the investment company, Icahn Capital Management LP. As of 2016-12-31, Icahn Capital Management LP owns 19 stocks with a total value of $22.4 billion. These are the details of the buys and sells.

Added Positions: HTZ, IEP, HLF, Reduced Positions: FCX, NUAN, PYPL,

For the details of Carl Icahn’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Carl+Icahn

These are the top 5 holdings of Carl IcahnIcahn Enterprises LP (IEP) – 129,999,050 shares, 34.82% of the total portfolio. Shares added by 2.30%American International Group Inc (AIG) – 45,644,982 shares, 13.32% of the total portfolio. CVR Energy Inc (CVI) – 71,198,718 shares, 8.08% of the total portfolio. Federal-Mogul Holdings Corp (FDML) – 138,590,141 shares, 6.39% of the total portfolio. Cheniere Energy Inc (LNG) – 32,680,490 shares, 6.05% of the total portfolio. Added: Hertz Global Holdings Inc (HTZ)

Carl Icahn added to the holdings in Hertz Global Holdings Inc by 126.17%. The purchase prices were between $21.34 and $39.66, with an estimated average price of $28.8. The stock is now traded at around $21.91. The impact to the portfolio due to this purchase was 1.57%. The holdings were 29,263,869 shares as of 2016-12-31.

Top 10 Value Stocks To Own For 2019: Fortress Transportation and Infrastructure Investors LLC(FTAI)

Advisors’ Opinion:

  • [By Logan Wallace]

    These are some of the media stories that may have effected Accern Sentiment’s scoring:

    Fortress Transportation and Infrastructure Investors (FTAI) Lifted to B- at TheStreet (americanbankingnews.com) BidaskClub Upgrades Fortress Transportation and Infrastructure Investors (FTAI) to “Buy” (americanbankingnews.com) Active Mover Fortress Transportation and Infrastructure Investors LLC (NYSE: FTAI) (alphabetastock.com) Services Stock Buzz: Fortress Transportation and Infrastructure Investors LLC (FTAI) (stocksgeeks.com) Contrasting H&E Equipment Services (HEES) & Fortress Transportation and Infrastructure Investors (FTAI) (americanbankingnews.com)

    Shares of FTAI opened at $16.25 on Friday. The stock has a market cap of $1,365.03, a PE ratio of 135.42 and a beta of 1.56. Fortress Transportation and Infrastructure Investors has a 12-month low of $14.25 and a 12-month high of $20.13.

Top 10 Value Stocks To Own For 2019: PetroChina Company Limited(PTR)

Advisors’ Opinion:

  • [By Max Byerly]

    ILLEGAL ACTIVITY NOTICE: “Somewhat Favorable News Coverage Somewhat Unlikely to Affect PetroChina (PTR) Stock Price” was reported by Ticker Report and is the sole property of of Ticker Report. If you are accessing this piece on another domain, it was illegally copied and reposted in violation of United States and international copyright law. The original version of this piece can be viewed at https://www.tickerreport.com/banking-finance/3368551/somewhat-favorable-news-coverage-somewhat-unlikely-to-affect-petrochina-ptr-stock-price.html.

  • [By Money Morning News Team]

    PetroChina Co. Ltd. (NYSE ADR: PTR) is China’s largest oil company with a market cap of $216.52 billion. PTR is partially owned by the Chinese government.

Top 10 Value Stocks To Own For 2019: Square, Inc.(SQ)

Advisors’ Opinion:

  • [By Garrett Baldwin]

    But in positive news for Bitcoin holders, Square Inc. (NYSE: SQ) announced today nearly all of its users can buy and sell Bitcoin. This should help increase more awareness about Bitcoin and the cryptocurrency market.

  • [By Garrett Baldwin]

    The optimism comes a day after payment-processing giant Square Inc. (NYSE: SQ) announced it was incorporating Bitcoin into its platform.

    Below is a recap of the top cryptocurrency prices at 12:00 p.m. EST

  • [By Daniel Sparks]

    Shares of financial-technology company Square (NYSE:SQ) have climbed about 4% higher since the company reported its first-quarter results last week. Bullishness toward the stock isn’t surprising, considering how the quarter put the spotlight on the company’saccelerating growth.

  • [By Jon C. Ogg]

    Square Inc. (NYSE: SQ) was reiterated as Overweight and the price target was raised to $55 from $52 at KeyBanc Capital Markets. Square was up 1.6% at $51.46 on Friday and was indicated up 1.4% at $52.20 on Monday. The consensus analyst target is closer to $49.

  • [By Lee Jackson]

    Square Inc. (NYSE: SQ) had the president, CEO, chairman and co-founder, Jack Dorsey, selling shares this past week. Hesurrendered a total of 381,500 shares at a share price of $14.09. The total for the sale was posted at $5,375,764. The company develops and provides payment processing, point-of-sale, financial and marketing services worldwide. Its stock ended last week$13.63. The 52-week trading range is $8.06 to $15.91. The consensus price target is $14.14.

Top 10 Value Stocks To Own For 2019: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Douglas A. McIntyre]

    Either Wall Street is wildly enthusiastic about the future prospects of Tesla Inc. (NASDAQ: TSLA) or pessimistic about Ford Motor Co.’s (NYSE: F). It could be some mix of the two that has brought Tesla’s market cap of $43 billion, which is 88% of Ford’s $49 billion.

  • [By Wayne Duggan]

    Silicon Valley rival Tesla Inc (NASDAQ: TSLA) is holding an event this week to unveil its mass-market Model 3 electric vehicle. Earlier this year, Ford said its first fully electric vehicle with more than 300 miles of range will go into mass production in 2020.

  • [By Nicholas Rossolillo]

    At the moment, Jaguar’s new SUV is Tesla’s (NASDAQ:TSLA) only real competitor. Tesla delivered just over 100,000 vehicles last year, but Jaguar could close in on that number fast. An order for 20,000 I-PACEs, before the car has even started rolling off of showroom floors, is a good start.

Top 10 Value Stocks To Own For 2019: Tuesday Morning Corp.(TUES)

Advisors’ Opinion:

  • [By Monica Gerson]

    Tuesday Morning (NASDAQ: TUES) shares gained 4.87% to create a new 52-week high of $14.63. Tuesday Morning shares have jumped 110.09% over the past 52 weeks, while the S&P 500 index has gained 18.17% in the same period.

  • [By Peter Graham]

    Small cap closeout home decor retailer Tuesday Morning Corporation (NASDAQ: TUES) reported Q4 and fiscal 2017 earnings before the market opened on Thursday. Q4net sales were $223.6 million versus $222.8 million as the Company’s sales comparison to the prior year is impacted by the net closure of 20 stores during the current fiscal year.Comparable store sales increased 1.8% compared to the same period a year ago, and were comprised of a 2.6% increase in customer transactions, partially offset by a 0.8% decrease in average ticket. The Company operated 731 stores at the end of the fiscal year, which is a decrease of 20 stores from the prior year period.The net loss was $17.3 million versusa net loss of $3.9 million.

Top 10 Value Stocks To Own For 2019: Extra Space Storage Inc(EXR)

Advisors’ Opinion:

  • [By Jon C. Ogg]

    Extra Space Storage Inc. (NYSE: EXR) was raised to Buy from Neutral at Merrill Lynch.

    ALSO READ: Jefferies Analysts Out With Top Stock Picks Before Global Tech Conference

    Goodyear Tire & Rubber Co. (NYSE: GT) was reiterated as Buy with a $36 price target (versus a $25.16 close) at Argus. The firm noted that the recent sell-off offers an attractive entry point.

  • [By Stephan Byrd]

    Extra Space Storage, Inc. (NYSE:EXR) hit a new 52-week high and low during trading on Tuesday . The company traded as low as $93.95 and last traded at $93.32, with a volume of 318074 shares changing hands. The stock had previously closed at $93.44.

  • [By Matthew Frankel]

    The final REIT type I like right now is self-storage, particularly Extra Space Storage (NYSE:EXR).

    First, I should mention that this could prove to be the most volatile company on the list. Self-storage isn’t as defensive as retail or healthcare simply because of its lease structure. Generally, you don’t sign a multi-year lease on a storage unit — you just pay each month that you want to keep it. This makes it easier for tenants to vacate the properties during tough times.

Top 10 Value Stocks To Own For 2019: Sportsman's Warehouse Holdings, Inc.(SPWH)

Advisors’ Opinion:

  • [By Logan Wallace]

    Sportsman’s Warehouse (NASDAQ:SPWH) has earned an average rating of “Hold” from the ten research firms that are currently covering the stock, MarketBeat.com reports. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $5.50.

Top 10 Value Stocks To Own For 2019: Waste Management, Inc.(WM)

Advisors’ Opinion:

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Waste Management (WM)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Lisa Levin]

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

    Wall Street expects Avon Products, Inc. (NYSE: AVP) to report quarterly earnings at $0.10 per share on revenue of $1.62 billion before the opening bell. Avon Products shares rose 2.39 percent to $6.00 in after-hours trading.
    Analysts expect MGM Resorts International (NYSE: MGM) to report quarterly earnings at $0.20 per share on revenue of $2.44 billion before the opening bell. MGM shares rose 1.01 percent to $29.90 in after-hours trading.
    Cisco Systems, Inc. (NASDAQ: CSCO) reported better-than-expected results for its second quarter and raised its quarterly dividend to $0.29 per share. Cisco shares rose 2.13 percent to $33.52 in the after-hours trading session.
    Before the markets open, Dean Foods Co (NYSE: DF) is projected to report its quarterly earnings at $0.41 per share on revenue of $2.01 billion. Dean Foods shares rose 0.49 percent to $20.55 in after-hours trading.
    Tripadvisor Inc (NASDAQ: TRIP) posted weaker-than-expected results for its fourth quarter on Wednesday. Tripadvisor shares dropped 5.60 percent to $49.75 in the after-hours trading session.
    Analysts are expecting Waste Management, Inc. (NYSE: WM) to have earned $0.77 per share on revenue of $3.42 billion in the latest quarter. Waste Management will release earnings before the markets open. Waste Management shares rose 2.27 percent to $72.97 in after-hours trading.

    Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

  • [By Brian Feroldi]

    Investors in their 60’s should start to favor low-risk stocks that offer up big dividend payouts. Below are three stocks — Waste Management (NYSE:WM), United Parcel Service (NYSE:UPS), and Welltower (NYSE:HCN) — that perfectly fit that description.

  • [By ]

    For his “Executive Decision” segment, Cramer spoke with Jim Fish, president and CEO of Waste Management (WM) , which just posted an eight-cents-a-share earnings beat, but saw shares decline as investors worry over the impact of trade wars with China on the company’s recycling business.

Top 10 Value Stocks To Own For 2019: Moneygram International, Inc.(MGI)

Advisors’ Opinion:

  • [By Lisa Levin]

    Moneygram International Inc (NASDAQ: MGI) shares were also up, gaining 21 percent to $5.74 after the company reported upbeat Q4 earnings.

    Equities Trading DOWN

  • [By Jim Robertson]

    On Friday, our Under the Radar Moversnewsletter suggested shorting small capmoney transfer services stock Moneygram International (NASDAQ: MGI):

  • [By Ben Levisohn]

    Western Union (WU) soared to the top of the S&P 500 today after MoneyGram International (MGI) received a bid from Euronet Worldwide (EEFT).

    Agence France-Presse/Getty Images

    Shares of Western Union gained 3.5% to $20.27 today, while the S&P 500 fell 0.3% to 2,365.45.MoneyGram International surged 25% to $15.77, while Euronet Worldwide advanced 0.3% to $83.22.

  • [By ]

    Cramer was bearish on Xilinx (XLNX) , Celgene (CELG) , Exelixis (EXEL) , Moneygram (MGI) , Monster Beverage (MNST) , SunCoke Energy Partners (SXCP) and Mattel (MAT) .

  • [By ]

    Moneygram (MGI) : “No, you need quality and this one doesn’t have it.”

    Monster Beverage (MNST) : “I think this one has run out of gas so I’m going to say don’t buy. “

Top 10 Value Stocks To Own For 2019: American Assets Trust, Inc.(AAT)

Advisors’ Opinion:

  • [By Markus Aarnio]

    Owens Realty Mortgage’s competitors include American Assets Trust (AAT), Alexandria Real Estate Equities (ARE) and Boston Properties (BXP). American Assets Trust has seen five insider buy transactions and four insider sell transactions this year. American Assets Trust has a dividend yield of 2.78%. Alexandria Real Estate Equities has seen 14 insider sell transactions this year. Alexandria Real Estate Equities has a dividend yield of 4.10%. Boston Properties has seen one insider buy transaction and four insider sell transactions this year. Boston Properties has a dividend yield of 2.43%.

3 Earnings Season Highlights From Automakers

Earnings season is always hectic, fun, and full of information from all angles of any given industry. This time around, the automotive industry had quite an interesting first quarter: There were some wild comments from Tesla(NASDAQ:TSLA) CEO Elon Musk, as well as a bold decision from Ford Motor Company (NYSE:F), and an intriguing partnership deal fromAptiv (NYSE:APTV). Here’s what investors need to know.

A not-so-boring call

Tesla’s conference calls are never boring, and are generally full of information, hype, and intrigue. This one was no exception, albeit a little more bizarre than analysts expected.

Musk expressed annoyance with the discussion of accounting figures and what he deemed myopic questions — exactly what Wall Street cares about from quarter to quarter. It’s not difficult to understand his frustration, given his ambitions are much grander. Unfortunately, Musk became fed up, telling the operator that “Boring, bonehead questions are not cool. Next?” Musk later replied to another question with: “I’m not here to convince you to buy our stock. Do not buy it if volatility is scary. There you go.”

That’s just a small sample from the unique conference call.

But don’t let those comments overshadow Tesla — a company that has the potential to become an electric-vehicle empire — and some of its interesting figures from the quarter. Among them, Tesla revealed it had more than 450,000 Model 3 reservations at the end of the first quarter, and that it hoped to reach production of 5,000 per week in roughly two months (production hit 2,270 per week during April). And the company said it could begin production of the Model Y small crossover in early 2020.

On the downside, while the future could be incredibly bright, Tesla reported a net loss of $784.6 million and its cash flow was negative $1 billion for the third time in the past four quarters.

What we learned: Musk and Tesla will continue to think big, Wall Street will remain myopic, and the electric-vehicle maker’s conference calls will never be boring.

Farewell, cars

What’s a Detroit automaker without a passenger-car lineup? In 2008, then-CEO of Ford Alan Mulally might have said “shortsighted.” Today, CEO Jim Hackett would say something along the lines of… “a healthier Detroit automaker.”It sounds crazy, and it’s at least risky, but Ford announced it would soon stop selling most of its passenger-car lineup in the U.S. market, which is craving more SUVs, crossovers, and trucks. Only Ford’s Mustang will remain, along with the Focus Active, which will arrive in 2019 as a wagon version in lower volumes.

Ford anticipates that by the end of 2020, light trucks will generate 90% of its North American sales — that’s certainly one way to boost margins. The decision is part of Ford’s strategy to get “fit,” which essentially means to feed the healthy parts of the business and cut costs. On the latter point, last October Ford was aiming at cutting $14 billion in costs; it then updated that by targeting $25.5 billion in savings by 2022.

A blue Ford F-150 towing a boat

Ford’s F-150 hauls big bucks for the company. Image source: Ford Motor Company.

It’s a high-risk, high-reward strategy. UBS analyst Colin Langan estimates Ford loses $800 million annually selling light cars, according to Automotive News, and that would filter down nicely to Ford’s bottom line. However, the company also risks losing a customer base looking for an entry-level-priced vehicle, and of course there’s the risk of consumer demand switching away from larger vehicles. We’ll see how it shakes out.

It’s possible Ford could bend on this strategy. But the decision is certainly the wildest move under Hackett so far, and one of the most interesting takeaways from this earnings season.

The future is now

Many investors haven’t heard of Aptiv yet — formerly Delphi Automotive — but almost certainly will in the decades ahead. Aptiv is uniquely positioned to deliver end-to-end smart-mobility and driverless-vehicle technology solutions. We don’t yet know which service providers (think Uber and Lyft) will win market share, or which automakers (think Ford and General Motors) will develop the best electric fleets or driverless vehicles, or how Silicon Valley will play its angle. But Aptiv will be involved in many aspects as a supplier.

That became even more clear Wednesday when it announced a small project with Lyft. The company said it would launch a fleet of 30 autonomous vehicles in Las Vegas on the Lyft network; passengers will have the ability to hail a self-driving vehicle equipped with Aptiv technology to go between high-demand locations.

It’s projects like this that will enable companies to figure out exactly how they can monetize big data, services, and driverless technology, as those all intersect in the evolving automotive industry. It’s unclear how it will all shake out, how soon this market will become lucrative, and which companies will rise to the top to the benefit of their investors. But this small project between Aptiv and Lyft makes it clear that the future of driverless cars is on its way, soon.

Earnings season is always crazy, and always exciting, and the first quarter of 2018 was no different. When you have a CEO losing patience with financial questions, Detroit’s second-largest automaker giving up on cars in the U.S., and driverless-car projects getting underway, you know it’s going to be an interesting year and decade. The industry is likely to evolve more over the next two decades than it has over the past century — and that could be very lucrative to savvy investors.

Top 10 Blue Chip Stocks To Watch Right Now

During these busy times, it pays to stay on top of the latest profit opportunities, and today’s blog post is a great place to start.

After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 82 big blue chips.

Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Top 10 Blue Chip Stocks To Watch Right Now: Thor Industries Inc.(THO)

Advisors’ Opinion:

  • [By WWW.MONEYSHOW.COM]

    One of the world’s largest makers of recreational vehicles, Thor Industries (THO) is in the right place at the right time.

    Industrywide wholesale RV shipments for the U.S. and Canada surged 15% to nearly 431,00 units in 2016 — the highest annual total in more than 40 years, according to The Recreation Vehicle Industry Association.

  • [By Elizabeth Balboa]

    Supply could come from any number of industry players, including Winnebago Industries, Inc. (NYSE: WGO), Thor Industries, Inc. (NYSE: THO), Polaris Industries Inc. (NYSE: PII) and Camping World Holdings Inc (NYSE: CWH). However, whether it comes from existing inventory and whether suppliers can meet the demand are yet to be seen.

  • [By Lisa Levin]

    Shares of Thor Industries, Inc. (NYSE: THO) got a boost, shooting up 14 percent to $102.70 as the company reported stronger-than-expected results for its first quarter on Monday.

  • [By Lisa Levin]

    Thor Industries, Inc. (NYSE: THO) shares were also up, gaining 11 percent to $151.76 after the company reported stronger-than-expected results for its first quarter on Monday.

Top 10 Blue Chip Stocks To Watch Right Now: Google Inc.(GOOG)

Advisors’ Opinion:

  • [By Chris Lange]

    Alphabet Inc. (NASDAQ: GOOG) released third quarter earnings after markets closed Thursday. With this quarter, Alphabet continues to prove why its the top dog in tech. The company said that it had $9.57 in earnings per share (EPS) and $27.77 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $8.33 in EPS on $27.2 billion in revenue. The same period from last year had $9.06 in EPS and $22.46 billion in revenue.

  • [By ]

    The New York Stock Exchange announced that shares of Amazon.com Inc. (AMZN) , Booking Holdings Inc. (BKNG) , Alphabet Inc. (GOOG) and (GOOGL) and Zion Oil & Gas Inc. (ZNWAA) have been suspended from trading for the remainder of Wednesday, April 25.

  • [By JJ Kinahan]

    This week is packed full of earnings releases. A lot of eyes will be on Thursday when tech giants Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN) and Intel Corporation (NASDAQ: INTC) report after the market closes. The European Central Bank is also meeting that same day, potentially adding some more volatility to the mix. Next week, tech giant Apple Inc. (NASDAQ: AAPL) will open the books after market close on Thursday, Nov. 2. If you have time, make sure to check out today’s market update to see what else is happening.

  • [By Chris Neiger]

    Or perhaps you’ve heard of a Nest programmable thermostat.Alphabet(NASDAQ:GOOG) (NASDAQ:GOOGL)owns Nest, which makes internet-connected thermostats that you can control via a smartphone or tablet, and learns your heating and cooling preferences the more you use it.

Top 10 Blue Chip Stocks To Watch Right Now: Arris Group Inc(ARRS)

Advisors’ Opinion:

  • [By Michael A. Robinson]

    Based in San Francisco, Dedrone also has the backing of Dominic Orr, CEO of Aruba Networks, a unit of Hewlett Packard Enterprise Inc. (NYSE: HPE); and Selina Lo, CEO of Ruckus Wireless, a unit of Arris International PLC (Nasdaq: ARRS).

Top 10 Blue Chip Stocks To Watch Right Now: CTI BioPharma Corp.(CTIC)

Advisors’ Opinion:

  • [By Ashley Moore]

    Here is a list of the top 10 best small-cap stocks based on price gains per share so far in 2017:

    Company (Ticker)Price per Share% Change AquaBounty Technologies Inc. (Nasdaq: AQB)$14.338,646.99%Rennova Health Inc. (Nasdaq: RNVA)$3.133,333.73%China Gengsheng Minerals Inc. (OTCMKTS: CHGS)$0.021,718.18%Sunshine Heart Inc. (Nasdaq: SSH)$3.851,071.43%CTI BioPharma Corp. (Nasdaq: CTIC)$4.30991.76%Catalyst Biosciences Inc. (Nasdaq: CBIO)$6.22853.85%TearLab Corp. (Nasdaq: TEAR)$4.20707.85%Pulmatrix Inc. (Nasdaq: PULM)$3.86566.10%Real Goods Solar Inc. (Nasdaq: RGSE)$1.43498.75%Calithera Biosciences Inc. (Nasdaq: CALA)$11.70281.54%

Top 10 Blue Chip Stocks To Watch Right Now: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Yes, Chipotle is having a great run. It’s gained 27% so far this year, and traded a new 52-week high today. But Chipotle is also expensive–so expensive that the market appears to be treating it like another Amazon.com (AMZN), Tesla (TSLA), Apple (AAPL), or Alphabet (GOOG), Moas wrote in his downgrade today. He explains:

  • [By Stephen Mack]

    But it isn’t Alphabet Inc. (Nasdaq: GOOGL) or Tesla Inc. (Nasdaq: TSLA) that makes the driverless tractor.

    It’s Deere & Co. (NYSE:DE), owner of the iconic John Deere brand. Founded in Illinois in 1837, Deere has spent the last 20 years positioning itself as a leader in autonomous vehicles.

  • [By WWW.THESTREET.COM]

    Watch out Tesla (TSLA) and Elon Musk.

    At the New York International Auto Show, Volvo unveiled a 400-hp plug-in electric hybrid SUV – the XC60.

  • [By ]

    (1) Tesla (TSLA) will reportedly start producing its Model Y sport utility vehicle in November 2019. Can we just say what sane people (not the Tesla fanatics who continue to shred me on Twitter each day) are probably thinking: How in the world is Tesla going to successfully produce another vehicle, a more complex one at that, when it can’t even make money on what’s rolling off its fledgling production lines currently? And how is Tesla going to pull this new vehicle off without an injection of capital? The questions around Tesla’s survival are unending and rightfully so. (2) Who cares if Netflix (NFLX) has decided to pull out of the Cannes Film Festival – you see this company’s stock lately? Netflix has become far and away the best-performing member of the FAANG (Facebook (FB) , Apple (AAPL) , Amazon (AMZN) , Netflix, Alphabet (GOOGL) ) stock club this year. Here are five reasons why. (3) Oil prices are on fire, hovering around three-year highs on heightened geopolitical tensions. That’s bad news for consumer companies such as Walmart (WMT) given the associated rise in gas prices. Prices at the pump are up about 11% from this point last year, and some surveys see prices up at least 14% this summer.   

  • [By ]

    Elon Musk’s recent concession that “humans are underrated” via Twitter (TWTR) reflects a change in philosophy that may well determine whether Tesla Inc. (TSLA) can achieve its projections for the Model 3 — a closely watched benchmark of the company’s ability to reach profitability without having to raise new capital. 

  • [By Dustin Blitchok]

    Prior to Wednesday’s unraveling of the manufacturing council, six executives had resigned:

    On June 1, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk dropped out following Trump’s decision to withdraw the U.S. from the Paris climate accord. “Leaving Paris is not good for America or the world,” Musk tweeted.
    Merck & Co., Inc. (NYSE: MRK) CEO Ken Frazier drew fire from Trump on Twitter after leaving the council. “Now that Ken Frazier of Merck Pharma has resigned from President's Manufacturing Council,he will have more time to LOWER RIPOFF DRUG PRICES!" the president tweeted.
    When Frazier left the council, he said: “I feel a responsibility to take a stand against intolerance and extremism.”
    On Aug. 14, Under Armour Inc (NYSE: UAA) CEO Kevin Plank resigned. “I love our country & company,” Plank said. “I am stepping down from the council to focus on inspiring & uniting through power of sport.”
    Intel Corporation (NASDAQ: INTC) CEO Brian Krzanich left Aug. 14 and said: “I stand with others for equality and improving U.S. competitiveness. Both require improving in today’s environment.”
    Alliance for American Manufacturing President Scott Paul quit Aug. 15, stating: “I’m resigning from the Manufacturing Jobs Initiative because it’s the right thing for me to do.”
    AFL-CIO President Richard Trumka resigned the same day as Paul. “We cannot sit on a council for a president who tolerates bigotry and domestic terrorism,” Trumka said.

    Image: Gage Skidmore, Flickr

Top 10 Blue Chip Stocks To Watch Right Now: Prism Technologies Group, Inc.(PRZM)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of TOWERVIEW LLC’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TOWERVIEW+LLC

    These are the top 5 holdings of TOWERVIEW LLCTejon Ranch Co (TRC) – 2,795,000 shares, 28.55% of the total portfolio. Saga Communications Inc (SGA) – 1,196,723 shares, 28.51% of the total portfolio. Shares reduced by 1.22%Barnes & Noble Inc (BKS) – 2,375,000 shares, 10.25% of the total portfolio. Corning Inc (GLW) – 600,000 shares, 7.56% of the total portfolio. Barnes & Noble Education Inc

  • [By WWW.GURUFOCUS.COM]

    For the details of TOWERVIEW LLC’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=TOWERVIEW+LLC

    These are the top 5 holdings of TOWERVIEW LLCTejon Ranch Co (TRC) – 2,795,000 shares, 28.55% of the total portfolio. Saga Communications Inc (SGA) – 1,196,723 shares, 28.51% of the total portfolio. Shares reduced by 1.22%Barnes & Noble Inc (BKS) – 2,375,000 shares, 10.25% of the total portfolio. Corning Inc (GLW) – 600,000 shares, 7.56% of the total portfolio. Barnes & Noble Education Inc

Top 10 Blue Chip Stocks To Watch Right Now: eHealth Inc.(EHTH)

Advisors’ Opinion:

  • [By Lisa Levin]

    Shares of eHealth, Inc. (NASDAQ: EHTH) got a boost, shooting up 19 percent to $19.04 as the company posted upbeat Q1 results.

    SVB Financial Group (NASDAQ: SIVB) shares were also up, gaining 17 percent to $301.12 following strong quarterly results.

  • [By Lisa Levin] Gainers
    Genprex, Inc. (NASDAQ: GNPX) jumped 46.7 percent to $16.1331. The low-float small-cap clinical stage gene therapy company saw its stock rally nearly 150 percent from Monday through Thursday. Formal news hasn't been announced this week that would support a triple-digit percentage rally (including more than 200 percent at one point on Thursday) but the quiet period following its initial public offering will expire on May 8.
    Celyad SA (NASDAQ: CYAD) shares gained 24.7 percent to $36.17. Celyad reported the publication of THINK study case report of CYAD-01 Induced Complete Remission in relapsed/refractory AML patient in haematologica.
    DMC Global Inc. (NASDAQ: BOOM) shares jumped 23.2 percent to $39.00 after the company reported upbeat Q1 results and issued upbeat Q2 guidance.
    eHealth, Inc. (NASDAQ: EHTH) gained 21.8 percent to $19.58 as the company posted upbeat Q1 results.
    Enova International, Inc. (NYSE: ENVA) climbed 20.4 percent to $27.20 following Q1 results.
    SVB Financial Group (NASDAQ: SIVB) shares jumped 18.2 percent to $304.135 following strong quarterly results.
    Knowles Corporation (NYSE: KN) gained 13.9 percent to $12.70 as the company reported Q1 results.
    Zymeworks Inc. (NYSE: ZYME) gained 13.8 percent to $17.36.
    Cocrystal Pharma, Inc. (NASDAQ: COCP) rose 11.8 percent to $2.336 after declining 25.09 percent on Thursday.
    ImmunoGen, Inc. (NASDAQ: IMGN) shares surged 11.7 percent to $11.75 after the company announced 'successful completion of interim analysis' for FORWARD I Phase 3 mirvetuximab soravtansine trial.
    Eloxx Pharmaceuticals, Inc. (NASDAQ: ELOX) gained 9.5 percent to $12.70.
    Expedia Group, Inc. (NASDAQ: EXPE) shares rose 8.5 percent to $115.3801 after the company reported stronger-than-expected earnings for its first quarter on Thursday.
    Sprint Corporation (NYSE: S) shares rose 8.3 percent to $6.50. The stock moved higher after a Reuters report suggested ongoing merger talks with T-M
  • [By Lisa Levin]

    Shares of eHealth, Inc. (NASDAQ: EHTH) got a boost, shooting up 16 percent to $18.64 as the company posted upbeat Q1 results.

    Enova International, Inc. (NYSE: ENVA) shares were also up, gaining 25 percent to $28.35 following Q1 results.

  • [By Lisa Levin]

    eHealth, Inc. (NASDAQ: EHTH) was down, falling around 32 percent to $9.53. eHealth reported a Q2 net loss of $0.5 million, versus a year-ago net income of $5.8 million. The company also reported weak quarterly revenue.

Top 10 Blue Chip Stocks To Watch Right Now: iShares Core S&P Mid-Cap (IJH)

Advisors’ Opinion:

  • [By WWW.GURUFOCUS.COM]

    For the details of Lubar & Co., Inc’s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Lubar+%26+Co.%2C+Inc

    These are the top 5 holdings of Lubar & Co., IncEnLink Midstream LLC (ENLC) – 1,882,007 shares, 37.97% of the total portfolio. Shares added by 0.40%Hallador Energy Co (HNRG) – 2,788,685 shares, 23.23% of the total portfolio. Vanguard Value ETF – DNQ (VTV) – 77,126 shares, 7.65% of the total portfolio. iShares Core S&P Mid-Cap (IJH) – 38,400 shares, 6.84% of the total portfolio. New PositionVanguard Mid-Cap Value ETF – DNQ (VOE) – 61,550 shares, 6.52% of the tota

Top 10 Blue Chip Stocks To Watch Right Now: ARMOUR Residential REIT, Inc.(ARR)

Advisors’ Opinion:

  • [By Joseph Griffin]

    ARMOUR Residential REIT (NYSE:ARR) was the target of some unusual options trading activity on Thursday. Stock traders acquired 657 call options on the stock. This represents an increase of approximately 1,163% compared to the typical volume of 52 call options.

  • [By Lee Jackson]

    These companies also reported insider buying last week: Armour Residential REIT Inc. (NYSE: ARR), Ducommun Inc. (NYSE: DCO), PJT Partners Inc. (NYSE; PJT), Sonic Automotive Inc. (NYSE: SAH)and Tandy Leather Factory Inc. (NASDAQ: TLF).

  • [By Amanda Alix]

    This development will likely give battered mREITs like Annaly Capital (NYSE: NLY  ) , Armour Residential (NYSE: ARR  ) , and American Capital Agency (NASDAQ: AGNC  ) a huge boost as investors begin to feel less panic regarding a tapering of the current QE3 program. Markets have responded to the Summers announcement by soaring skyward, apparently feeling relief and confidence about the fate of the taper.

  • [By Amanda Alix]

    It was just about one year ago that QE3 made its debut, and mortgage REITs, particularly agency-only players like Annaly Capital (NYSE: NLY  ) , Armour Residential (NYSE: ARR  ) , and American Capital Agency (NASDAQ: AGNC  ) began moaning about the increased competition for mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

Top 10 Blue Chip Stocks To Watch Right Now: Mead Johnson Nutrition Company(MJN)

Advisors’ Opinion:

  • [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.

  • [By WWW.THESTREET.COM]

    The group agreed to sell its food business to McCormick & Company Inc. (MKC)  last week for $4.2 billion. Reckitt said it would use the sale proceeds to reduce debt, which grew by $21 billion through a pair of financing transactions in March led by Bank of America Merrill Lynch, Deutsche Bank and HSBC in order to fund its $18 billion acquisition of infant nutrition group Mead Johnson (MJN) earlier this year.

Hot Performing Stocks To Own For 2019

Facebook is on track for its worst day in more than five years, and it’s dragging the stock market down with it.

The Dow fell as much as 493 points on Monday and is in negative territory for the year. Facebook tumbled 7%, helping to pull the S&P 500 down 1.7% and the Nasdaq 2.2%.

Big tech companies, including Facebook (FB), Amazon (AMZN), Netflix (NFLX)and Google (GOOG), have helped contribute to the market’s climb, but all four dropped Monday. The S&P’s tech sector fell 2.9%. It was the worst performing sector on the index.

Facebook is under pressure from lawmakers in both the United States and the UK after more than 50 million users’ data ended up in the wrong hands.

“When you have real damage to a large enough company, that translates into the indexes as a whole,” Brad McMillan, chief investment officer at Commonwealth Financial Network, said.

Democratic Senator Amy Klobuchar has called on Zuckerberg to appear before Congress to testify about “what Facebook knew about misusing data from 50 million Americans in order to target political advertising and manipulate voters.” John Kennedy, a Republican senator from Louisiana, joined Klobuchar in calling for Zuckerberg to testify.

Hot Performing Stocks To Own For 2019: 2U, Inc.(TWOU)

Advisors’ Opinion:

  • [By Steve Symington]

    2U Inc.(NASDAQ:TWOU)announced first-quarter 2018 results on Thursday after the market closed, highlighting not only the strength of its core Graduate Program business, but also the growing influence of its short-course offerings following its acquisition of GetSmarter last year. Shares were up more than 6% on Friday as of this writing, so let’s settle in to learn more about what drove the online education-platform company this quarter, as well as what investors should be watching in the year ahead.

  • [By David Kretzmann]

    Since its IPO in March 2014, 2U (NASDAQ:TWOU) stock is up over 160% as the company forges partnerships with famous schools, including Georgetown, Yale, Berkeley, and New York University.

Hot Performing Stocks To Own For 2019: Kronos Worldwide Inc(KRO)

Advisors’ Opinion:

  • [By Zacks]

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  • [By Zacks]

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  • [By Monica Gerson]

    Kronos Worldwide, Inc. (NYSE: KRO) is projected to post a quarterly loss at $0.13 per share on revenue of $308.50 million.

    Energen Corporation (NYSE: EGN) is estimated to post a quarterly loss at $0.67 per share on revenue of $122.91 million.

Hot Performing Stocks To Own For 2019: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By Peter Graham]

    The Q4 2016 earnings report for electric vehicle (EV) stock Tesla Motors Inc (NASDAQ: TSLA) is scheduled for after the market closes onWednesday (February 22nd). Tesla Motorsfirst known fatality involving a Model S operating on the Autopilot system along with the controversial deal to buy Elon Musks SolarCity Corp (NASDAQ: SCTY) venture had created headwinds for the stock with thecoming earnings report being thefirst since the acquisition. A UBS analyst Colin Langan also recently commented:We continue to believe SolarCity is an unneeded distraction during a very challenging launch period.

  • [By Teresa Rivas]

    Tesla (TSLA) is rising Monday, thanks to a bullish note from Piper Jaffray.

    Getty Images

    Analyst Alexander Potter and his team boosted their rating on the car maker from Neutral to Overweight, and increasing their price target from $223 to $368. He writes that the call comes after driving a Tesla for seven months and meeting with the company last week.

    He admits that the stocks valuation is rich by any conventional metric, and it could be a bumpy ride, as shares shift around on headlines about the Model 3. Yet ultimately he writes that investors ignore Tesla at their own risk.

    More detail from the note:

    Tesla’s products have a captivating impact on consumers and shareholders alike;this advantage will be difficult to replicate.In the minds of its customers, employees, and shareholders, Tesla isn’t just another company. More so than any stock weve covered, Tesla engenders optimism, freedom, defiance, and a host of other emotions that, in our view, other companies cannot replicate. As they scramble to catch up, we think Tesla’s competitors only make themselves appear more desperate. With this in mind, even if the Model 3 production launch goes badly, we think customers (and more importantly shareholders) will withhold judgment.

    We sympathize with bears – but their (arguably rational) arguments probably wont matter. In many ways, TSLA seems to play by its own rules. The company burns through cash at a rate that better-established companies would likely be crucified for – especially considering TSLA’s rickety balance sheet and penchant for raising equity. Tesla’s production timelines are unreasonably fast, at least based on “expert” opinions in the automotive industry, and the company spurns various industry norms. For instance Tesla has avoided LiDAR in its self-driving systems (which some claim is dangerous), while pursuing a direct sales model that dealersh

  • [By WWW.THESTREET.COM]

    Watch out Tesla (TSLA) and Elon Musk.

    At the New York International Auto Show, Volvo unveiled a 400-hp plug-in electric hybrid SUV – the XC60.