Shares of Endo International (ENDP) have tumbled 40% today after it said profits would fall well short of analyst expectations thanks, in part, to plunging generic drug prices. Leerink’s Jason Gerberry and team look for specialty pharmaceutical companies that have similar business models–and find Akorn (AKRX), Perrigo (PRGO), and Teva Pharmaceutical Industries (TEVA). They explain:
Endos ’16 guidance re-basing, which comes afterPerrigo (MP) provided a similar rebasing (4/25), may provide read-through for companies with high exposure to (1) significant 2014-15 US generic price hikes; (2) disproportionately high 2015 generic gross margins another indicator of price and tough Y/Y comparable. While we expect the broader spec pharma group to trade down on theEndo (MP) print, we see the most direct read-through toAkorn (MP),Perrigo (MP) and TEVA (OP), moderate read-through to Allergan (AGN) (OP) and Mallinckrodt (MNK) (OP) and limited read-through to Mylan (MYL) (OP) and Sandoz who have already reported. Our sector view is that generic price deflation will be most acute in pockets of the market, mainly opioids and one-off niche alternative dosage products while the bigger diversified players seem relatively insulated and 1Q results for Sandoz andMylan provide some support that view.
Top 10 Information Technology Stocks For 201 6: Simulations Plus, Inc.(SLP)
Simulations Plus, Inc. designs, develops, and markets drug discovery and development software for mechanistic modeling and simulation. It offers GastroPlus that simulates the absorption, pharmacokinetics, and pharmacodynamics of drugs administered to humans and animals; DDDPlus, which simulates in vitro laboratory experiments that measure the rate of dissolution of the drug and additives in a dosage form; and MembranePlus that simulates laboratory experiments. The company also provides PKPlus, a standalone program that provides the functionality needed by pharmaceutical industry scientists to generate the analyses and outputs to satisfy regulatory agency requirements for NCA and compartmental pharmacokinetics; ADMET Predictor, a chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, a molecule drawing program or sketcher that integrates with MedChem Studi o and ADMET Predictor. In addition, it offers MedChem Studio, a tool for data mining and designing new molecules; and KIWI, a cloud-based Web application that organizes, processes, maintains, and communicates the volume of data and results generated by pharmacologists and scientists over the duration of a drug development program. Further, the company provides consulting services ranging from early drug discovery through preclinical and clinical trial data analysis, and reporting to regulatory agencies; and population modeling and simulation contract research services for the pharmaceutical and biotechnology industries. It offers software and services to pharmaceutical, biotechnology, agrochemical, and food companies, as well as regulatory agencies in North America, South America, Europe, Japan, Australia, New Zealand, India, Singapore, and the Peoples Republic of China. Simulations Plus, Inc. was founded in 1996 and is headquartered in Lancaster, California.
- [By Monica Gerson]
Simulations Plus, Inc. (NASDAQ: SLP) is estimated to post its quarterly earnings at $0.07 per share on revenue of $5.00 million.
Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets
- [By Benzinga News Desk]
UBS (NYSE: UBS) Q2 EPS $0.83, Revenue $5.45B; Q2 EPS Up ~4% YoY, Revenue Up ~8% YoY
PNC (NYSE: PNC) Q2 EPS $1.82 vs $1.75 est, Revenue $3.79B vs $3.81B est
Simulations Plus (NASDAQ: SLP) Reports Q3 EPS $0.11 vs. Est. $0.12, Rev. $6.01M vs. Est. $6.57M
Top 10 Information Technology Stocks For 2016: Exxon Mobil Corporation(XOM)
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. It also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products. As of December 31, 2015, the company had approximately 35,909 gross and 30,114 net operated wells. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas.
- [By Todd Shriber, ETF Professor]
ERX has been a decent asset-gathering pace as far as leveraged ETFs go, adding nearly $70 million in new assets this year. Of course, investors should know exactly what ERX is leveraging. To a large extent, it is Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX). The Dow components and two largest U.S. oil companies are over a third of XLE's combined weight.
- [By Paul Ausick]
Exxon Mobil Corp. (NYSE: XOM), the countrys largest producer of natural gas, is down about 0.5%, at $88.36 in a 52-week range of $84.70 to $95.49.
Top Construction Material Companies To Own For 2016: Apollo Global Management, LLC(APO)
Apollo Global Management, LLC is a publicly owned investment manager. It primarily provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. The firm manages client focused portfolios. It launches and manages hedge funds and mutual funds for its clients. The firm also manages real estate funds and private equity funds for its clients. The firm invests in the fixed income and alternative investment markets across the globe. Its alternative investments include investment in private equity and real estate markets. The firm’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, turnaround, corporate restructuring, special situation, acquisition, and industry consolidation transactions. Its fixed income investments include income -oriented senior loan and bond, structured credit, opportunistic credit, non-performing loans and value oriented fixed income securities. The firm seeks to invest in chemicals; commodities; consumer and retail; oil and gas, metals, mining, agriculture, commodities, distribution and transportation; financial and business services; manufacturing and industrial; media distribution, cable, entertainment, and leisure; natural resources, energy, packaging and materials; and satellite and wireless. It seeks to invest in companies based in across North America with a focus on United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. The firm employs a combination of contrarian, value, and distressed strategies to make its investments. It conducts an in-house research to create its investment portfolio. The firm seeks to acquire minority positions in its portfolio companies. The firm seeks to make investments in the range of $200 million and $1.5 billion. Apollo Global Management, ! LLC was founded in 1990 and is headquartered in New York, New York with additional offices in Los Angeles, California; Purchase, New York; Houston, Texas; London, United Kingdom; Frankfurt, Germany; Luxembourg, Luxembourg; Hong Kong, Hong Kong; Singapore, Singapore; and Mumbai, India.
- [By Lisa Levin]
The Fresh Market Inc (NASDAQ: TFM) agreed be acquired by Apollo Global Management LLC (NYSE: APO) for $28.50 per share in cash.
In an approximately $1.4 billion in cash buyout, shareholders are set to receive $28.50 per share. This calculates to an approximately 53 percent premium over the February 10 closing price and an approximately 24 percent premium over last Friday’s closing price.
- [By Chad Tracy]
In 2008, Apollo Global Management (NYSE: APO) co-founder Joshua Harris was on a losing streak.
The firm's $430 million investment in big-box retailer Linens N' Things went south when the company filed for bankruptcy.
Top 10 Information Technology Stocks For 2016: NQ Mobile Inc.(NQ)
NQ Mobile Inc. provides mobile Internet services in the Peoples Republic of China and internationally. The company provides products and services in the areas of mobile security, privacy, optimization, personalized cloud, and family protection. It operates through two segments, Consumer and Enterprise. The company offers NQ Mobile Security, a mobile security product that protects users mobile data from viruses, malware, hackers, and spyware; NQ Mobile Vault, which helps users control pictures, videos, contacts, SMS, and call logs; Android Booster and Super Task Killer that tune users smart devices to achieve optimum performance; NQ Family Guardian, which allows parents to monitor and protect their childrens smart device activities; and cloud security SDK that allows third-party developers to incorporate the function to their applications and products. It also provides mobile entertainment applications and platforms, including Showself Live Video, a live mobile social video platform, which facilitates real-time video shows, enables mobile users to interact and socialize with hosts, and offers a series of in-show mobile games; Showself Desktop, a personalized interactive and programmable mobile desktop application that offers dynamic and themed-wallpaper, and desktop applications; and Showself Music Radar, which provides automatic audio content recognition services, as well as publishes mobile games for third-parties. In addition, NQ Mobile Inc. offers enterprise mobility solutions and services, including system management, application development, business intelligence, and maintenance services, as well as provides advertising and customer support services. The company was formerly known as NetQin Mobile Inc. and changed its name to NQ Mobile Inc. in April 2012. NQ Mobile Inc. was founded in 2005 and is headquartered in Beijing, the Peoples Republic of China.
- [By Belinda Cao]
Oberweis China Opportunities Fund (OBCHX), the best-performing U.S.-based fund investing in Chinese stocks, said Internet companies from NQ Mobile Inc. (NQ) to Qihoo 360 Technology Co. (QIHU) will extend a rally after jumping more than three-fold this year.
Top 10 Information Technology Stocks For 2016: Nuveen Municipal Value Fund Inc.(NUV)
Nuveen Municipal Value Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of the United States. The fund also invests some portion of its portfolio in derivative instruments. It invests in undervalued municipal securities and other related investments the income, exempt from regular federal income taxes that are rated Baa or BBB or better. It employs fundamental analysis with bottom-up stock picking approach to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor?s (S&P) National Municipal Bond Index. Nuveen Municipal Value Fund, Inc. was formed on April 8, 1987 and is domiciled in the United States.
- [By Donald van Deventer]
The latest implied forward rate forecast from Kamakura Corporation shows projected 10-year U.S. Treasury yields differing -0.07% to 0.03% from last week while fixed rate mortgage yields varied by -0.01% to 0.08%. Mortgage yields, determined by the Monday through Wednesday weekly survey of the Federal Home Loan Mortgage Corporation, lag Treasury movements simply because of the 3-day yield calculation used in the Primary Mortgage Market Survey. The 10-year U.S. Treasury yield is projected to rise from 2.92% at Thursday’s close (down 0.06% from last week) to 3.374% (down 0.06% from last week) in one year. The 10-year U.S. Treasury yield in ten years is forecast to reach 4.639%, 1 basis point lower than last week. The 15-year fixed rate mortgage rate is forecast to rise from the effective yield of 3.69% on Thursday (down 0.001% from last week) to 4.222% (down 0.006% from last week) in one year and 6.29% in 10 years, up 0.038% from last week. We explain the background for these calculations in the rest of this note, along with some mortgage servicing rights metrics. The forecast allows investors in exchange traded U.S. Treasury funds (TLT) (TBT), total return bond funds (BOND), municipal bonds (NUV) and exchange traded mortgage funds (REM) to assess likely total returns over the next 120 months. Treasury-related exchange traded funds affected by the forward rates include:
Top 10 Information Technology Stocks For 2016: Werner Enterprises, Inc.(WERN)
Werner Enterprises, Inc., incorporated on September 14, 1982, is a transportation and logistics company. The Company is engaged in transporting truckload shipments of general commodities in both interstate and intrastate commerce. The Company operates through two segments: Truckload Transportation Services (Truckload) and Value Added Services (VAS). The Company also provides logistics services through its VAS division. The Company has a fleet of approximately 7,450 trucks, of which over 6,640 are Company-operated and over 810 are owned and operated by independent contractors. Its VAS division operates over 60 additional intermodal drayage trucks.
Truckload Transportation Services
Truckload segment comprises the One-Way Truckload and Specialized Services units. Its One-Way Truckload unit’s operating fleet includes the regional short-haul (Regional) fleet, which transports a variety of consumer non-durable products and other commodities in truckload quantities within geographic regions across the United States using dry van trailers; the medium-to-long-haul van (Van) fleet, which provides comparable truckload van service over irregular routes, and the expedited (Expedited) fleet, which provides time-sensitive truckload services utilizing driver teams. Its Specialized Services unit provides truckload services for a retail distribution center or manufacturing facility, including services for products requiring specialized trailers, such as flatbed or temperature-controlled trailers.
The Company’s Truckload fleets operate across over 40 contiguous United States’ states pursuant to operating authority, both common and contract, granted by the United States Department of Transportation (DOT) and pursuant to intrastate authority granted by various United States’ states. It also operates in several provinces of Canada and provides through-trailer service into and out of Mexico. The principal types of freight it t ransports include retail store merchandise, consumer product! s, grocery products and manufactured products.
The Company’s VAS segment is a non-asset-based transportation and logistics provider. VAS comprises operating units that provide non-trucking services to its customers, which include truck brokerage (Brokerage) that uses contracted carriers to complete customer shipments; freight management (Freight Management), which offers a range of single-source logistics management services and solutions; the intermodal (Intermodal) unit, which offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation, and Werner Global Logistics international (WGL), which provides complete management of global shipments from origin to destination using a combination of air, ocean, truck and rail transportation modes. Its Brokerage unit has transportation services contracts with approximately 12,920 carriers.
- [By Jake L’Ecuyer]
Equities Trading DOWN
Shares of Outerwall (NASDAQ: OUTR) were down 16.03 percent to $47.00 after the company lowered its forecast for the third quarter and full year. Werner Enterprises (NASDAQ: WERN) shares tumbled 4.71 percent to $23.26 after the company issued a weak third-quarter profit forecast. Bank of America downgraded the stock from Buy to Neutral. Pandora Media (NYSE: P) down, falling 1.71 percent to $23.58 as the company announced its plans to sell 14 million shares of common stock, including 4 million shares from current stockholders.
- [By Monica Gerson]
Werner Enterprises (NASDAQ: WERN) issued a weak third-quarter profit forecast. Werner shares dropped 2.09% to $23.90 in the after-hours trading session.
- [By Michael Flannelly]
Following Werner Enterprises, Inc.’s (WERN) third quarter earnings warning, analysts at KeyBanc downgraded the transportation and logistics company on Tuesday.
The analysts downgraded WERN from “Buy” to “Hold.”
KeyBanc analyst Todd Fowler said, “We downgrade WERN from Buy to HOLD following its negative 3Q pre-ann’ct, which reflected a number of company-specific issues that we expect to limit upside going forward; we would focus investors on other, stronger-performing names within the truckload space, specifically, BUY-rated Swift Transportation Company (SWFT), Marten Transport Ltd. (MRTN), and Knight Transportation Inc. (KNX).”
Werner Enterprises shares were down $1.66, or 6.80%, during pre-market trading on Tuesday. The stock is up 12.64% year-to-date.
- [By Monica Gerson]
Werner Enterprises (NASDAQ: WERN) shares dropped 4.83% to $23.23 in pre-market trading after the company issued a weak third-quarter profit forecast.
Top 10 Information Technology Stocks For 2016: eHealth Inc.(EHTH)
eHealth, Inc. offers Internet-based insurance agency services for individuals, families, and small businesses in the United States. The company also offers technology licensing and Internet advertising services. Its ecommerce platforms organize and present health insurance information in various formats, as well as enables individuals, families, and small businesses to research, analyze, compare, and purchase various health insurance plans. The company offers various medical health insurance coverage plans, such as preferred provider organization, health maintenance organization and indemnity plans, Medicare plans, short-term medical insurance, student health insurance, and health savings account eligible health insurance plans, as well as ancillary plans, such as dental, vision, and life insurance. Its customers access its ecommerce platforms through its Websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, and PlanPrescriber.com, as well as through a network of marketing partners. The company was incorporated in 1997 and is headquartered in Mountain View, California.
- [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 Information Technology Stocks For 2016: Urban Outfitters Inc.(URBN)
Urban Outfitters Inc. operates lifestyle specialty retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brand names in the United States, Canada, and Europe. Its Urban Outfitters stores sell women?s and men?s fashion apparel, footwear, accessories, and gifts, as well as apartment wares, such as rugs, pillows, shower curtains, books, candles, and novelties to young adults aged 18 to 28; and Anthropologie stores provide women?s casual apparel and accessories, shoes, gifts, and decorative items, as well as home furnishings, including furniture, rugs, lighting, antiques, table top items, and bedding to women aged 28 to 45. The company?s Free People stores primarily offer Free People branded merchandise mix of casual women?s apparel, intimates, shoes, accessories, and gifts to young contemporary women aged 25 to 30; Terrain store provides lifestyle home and garden products, antiques, live plants, flowers, wellness products, and accessori es, as well as landscape and design service solutions; and BHLDN store offers a range of weeding collections consisting of wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations. As of January 31, 2012, it operated 197 Urban Outfitters stores, 168 Anthropologie stores, 62 Free People stores, 1 Terrain garden center, and 1 BHLDN store. The company also operates a wholesale business under the Free People brand name that distributes apparel to other retailers and department stores in the United States. In addition, it markets its brands directly to consumers through its e-commerce Websites, including urbanoutfitters.com, anthropologie.com, freepeople.com, urbanoutfitters.co.uk, urbanoutfitters.de, urbanoutfitters.fr, anthropologie.eu, shopterrain.com, and bhldn.com, as well as through its Urban Outfitters, Anthropologie, and Free People catalogs. The company was founded in 1970 and is based in Philadelphia, Pennsylvani a.< /p> Advisors’ Opinion:
- [By Monica Gerson]
Urban Outfitters, Inc. (NASDAQ: URBN) shares rose 8.17 percent to $26.60 in the pre-market trading session. Urban Outfitters reported in-line earnings for its first quarter, but the company exceeded analysts’ sales estimates. Its total comparable sales increased 1 percent for the quarter.
- [By Dan Moskowitz]
Urban Outfitters (NASDAQ: URBN ) is another similar player. However, it targets a wider array of consumers through its various brand stores, including Urban Outfitters (18-28 demographic), Free People (25-30), and Anthropologie (28-45). Like Express, Urban Outfitters is slowly expanding its store base. Also like Express, Urban Outfitters saw an impressive earnings improvement in the second quarter. In this case, EPS increased 21% to $0.51 thanks to optimized inventory and lower merchandise markdowns.
- [By Ben Levisohn]
Urban Outfitters (URBN) has tumbled 8.7% to $25.50 after reporting in an SEC filing that its same-store sales are dropping faster than Street expectations.
- [By Teresa Rivas]
Although Urban Outfitters (URBN) gave up some of its earlier gains, Canaccord Genuity thinks the stock can ultimately rise more than 25%.
Analyst Laura Champine upgraded the stock to Buy from Hold, with a $48 price target. She writes that the market, which has sent the stock down 11% in the past two weeks, has been overacting to the companys announcement earlier this month that sales were trending mid-single-digit positive so far in the quarter. She sees the sales as indicative of sustained market share gains given the challenging apparel environment.
E-commerce penetration of around one-quarter of total sales makes URBN the strongest public specialty apparel retailer online. We expect this channel to sustain rapid growth as management aspirations are at 50% penetration, she writes. Unit growth is above average. We project the store base growing at a five-year CAGR of 7% versus the average retailer we cover at +5%.
Also part of her thesis: The fact that Urban is growing its consolidated store base at a compounded annual rate of 7% over the next five years, ahead of the average 5% for the other retailers in her coverage universe. Champine notes that the Anthropologie brand is in the midst of a turnaround as well, with same-store sales growing 9% in the second quarter.
Top 10 Information Technology Stocks For 2016: Daktronics, Inc.(DAKT)
Daktronics, Inc., together with its subsidiaries, designs, manufactures, and sells various electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation, as well as controllers; LED ribbon board displays; mobile and modular display systems; freeform LED displays, which include architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events, primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms. It also provides message displays; ITS dynamic message signs, incl uding LED displays for road management, mass transit, and aviation applications; and digit and directional displays for use in parking facilities; audio systems for outdoor sports venues. In addition, the company offers static and digital billboards used to display static images which change at regular intervals for the out-of-home (OOH) advertising industry; Visiconn system, a software application for controlling content and playback loops for digital billboard applications; and street furniture comprising advertising light boxes for static, scrolling, and digital OOH campaigns. Further, it provides digit and price displays, such as outdoor time and temperature displays, as well as Fuelight digit displays for the petroleum industry; and maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is based in Brookings, South Dakota.
- [By Monica Gerson]
Daktronics, Inc. (NASDAQ: DAKT) is projected to report its quarterly earnings at $0.08 per share on revenue of $156.17 million.
Guidewire Software Inc (NYSE: GWRE) is estimated to post its quarterly earnings at $0.06 per share on revenue of $92.43 million.
- [By Monica Gerson]
Daktronics, Inc. (NASDAQ: DAKT) is estimated to report its quarterly earnings at $0.08 per share on revenue of $156.17 million. Daktronics shares slipped 0.13 percent to close at $7.97 on Tuesday.
Top 10 Information Technology Stocks For 2016: Blackrock Global(BOE)
BlackRock Global Opportunities Equity Trust (the Trust), incorporated on February 22, 2005, is an investment trust. The Trusts primary investment objective is to seek current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy to seek total return performance and enhance distributions.
Under normal circumstances, the Trust invests its total assets in foreign issuers, issuers that primarily trade in a market located outside the United States or issuers that do business outside the United States. The Trust may invest directly in such securities or synthetically through the use of derivatives. BlackRock Advisors, LLC is an investment advisor of the Trust. The Trust invests in various sectors, such as energy, consumer p roducts, financial institutions, industrials, technology, basic materials, telecommunications, health care, real estate, transportation, aerospace and defense, automotive, building and development, and entertainment and leisure.
- [By Robert Rapier]
Whiting Petroleum (WLL) is one of Continental’s biggest competitors in the Bakken. Whiting is the second-largest oil producer in North Dakota, averaging 82,500 barrels of oil equivalent (BOE) of production in 2012, across more than 700,000 acres of leased land.