Last night, Citigroup’s Kate McShane and Corinna Van der Ghinst explained why the “long term outlook still looks good” for Finish Line (FINL) despite supply chain problems, which “linger like an unwanted house guest”:
Jeff Morehead/Associated Press
Supply Chain Problems Linger like an Unwanted House Guest: Mgmt. delivered a solid Q4, hitting its comp and EPS targets while managing through supply chain issues. Q4s strong +4.6% comp may have received an extra lift from lost Q3 sales that were recaptured in Q4, but there are a number of initiatives under way that should be LT comp positives. Although supply chain risk has not been eliminated, we feel good about new leadership and their focus on improving execution. We have a positive outlook given strong brand relations, solid industry growth, success at Macys (M), store remodel/optimization plans, and mgmts focus on returning capital to shareholders.
Top 5 Casino Stocks To Watch For 2016: Whiting Petroleum Corporation(WLL)
Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. As of December 31, 2010, its estimated proved reserves were 304.9 million barrels equivalent of oil; and had interests in 9,698 gross productive wells covering approximately 1,115,000 gross developed acres. The company sells its oil and gas to end users, marketers, and other purchasers. Whiting Petroleum Corporation was founded in 1983 and is Denver, Colorado.
- [By Ben Levisohn]
Stifel’s Michael Scialla and Daniel Guffey warn investors not to chase the biggest gainers among the exploration & production stocks, including Denbury Resources (DNR) and Whiting Petroleum (WLL), and instead stick with more stable fare such as Anadarko Petroleum (APC), Rice Energy (RICE), and Continental Resources (CLR). They explain:
- [By Ben Levisohn]
The $50/Bbl Question Is Answered In our June 2nd note entitled, Rethinking Risk/Reward on High Beta E&Ps, we highlighted that $50/Bbl is a critical level as it is around which many E&Ps have indicated they would begin either utilizing drilled-but-uncompleted (DUC) wells and/or increasing activity. Thus, with the NYMEX strip exceeding ~$50/Bbl in H216 and 2017, the question becomes, What will E&Ps do next? In our note we distinguished which oilier SMID Caps could organically accelerate at current NYMEX strip prices without further leveraging the balance sheet and which would still require higher oil prices. We ranked WPX third, behindOasis Petroleum (OAS) and Whiting Petroleum (WLL) in terms of its ability to accelerate through the drill-bit while keeping the balance sheet intact. For WPX we concluded that without increasing activity beyond our base case assumptions or higher oil prices, leverage would increase by 0.8x in 2017. However with accelerated activity and corresponding higher outspend (via more Williston DUCs and an addtl Permian rig), we forecast WPX could further grow production next year and keep leverage flattish at ~3.5x Net Debt/EBITDAX. We think todays announcements confirm our thesis, as WPX increased 2016 Williston activity and issued equity to facilitate this addtl spend plus potential activity acceleration in 2017/2018 without adding more debt.
- [By Ben Levisohn]
Productivity analysis favors stock picking framework of shale scale + the next rung down. We continue to maintain our Buy ratings on several shale productivity winners such asEOG Resources (CL),Diamondback Energy (CL),PDC Energy (CL),Pioneer Natural Resources and RSP Permian, while increased visibility in a path towards oil price recovery has heightened our confidence in next rung down stocks such as Hess (HES) (CL), Anadarko Petroleum (APC), Encana (ECA), Carrizo Oil & Gas (CRZO) and Whiting Petroleum (WLL). While our well results analysis supports our thesis on these shale scale winners, we note that a number of these higher beta stocks also screened particularly well, further bolstering our view on these equities.
Top 5 Casino Stocks To Watch For 2016: T-Mobile US, Inc.(TMUS)
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, such as smartphones, tablets, and other mobile communication devices, as well as accessories, which are manufactured by various suppliers. It offers services, devices, and accessories through its owned and operated retail stores, as well as through its Websites. T-Mobile US, Inc. also sells its devices and accessories to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. The company provides its services under the T-Mobile and MetroPCS brands. As of December 31, 2014, it provided services to approximately 55 million customers. T-Mobile US, Inc. was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. operates as a subsidiary of Deutsche Telekom AG.
- [By Kimberly Lankford]
All current and new customers will receive at least one share of T-Mobile stock, and customers who refer new members can receive up to 100 extra shares per year. T-Mobile (TMUS) is currently selling at about $42 per shareup 8.6% over the past year and 24% over the past three yearsbut the gift could make tax filing more difficult. It can complicate your tax situation if you have an otherwise simple tax return, says Laurie Ziegler, an enrolled agent and managing member of Sass Accounting LLC, in Saukville, Wis.
- [By Andrea Tse]
Despite Verizon consistently being able to keep churn rates at very low levels over the last decade, rates have edged up compared to five years ago. The company’s churn rate for retail postpaid customers came in at 0.93% and 0.97% for the three months and six months ended June 30. Five years ago during the same period, the figures were at 0.83% and 0.88%, respectively. The latest wireless churn rate data on other telecom companies show T-Mobile USA (TMUS) coming in at 1.6% and 1.8% during those same periods, and AT&T’s arriving at 1.02% and 1.03% and almost rivaling Verizon’s during those respective time frames. In any case, Verizon still has the chance to prove that it’s able to beat its own churn rate lows again in the coming years. [Read: Blackberry Fails at the ‘Vision Thing’]
Top 10 Industrial Conglomerate Stocks To Buy Right Now: Rockwell Medical Technologies Inc.(RMTI)
Rockwell Medical Technologies, Inc. manufactures, sells, and distributes hemodialysis concentrate solutions and dialysis kits primarily in the United States, Latin America, Asia, and Europe. The company?s hemodialysis product duplicates kidney function in patients with failing kidneys, known as end stage renal disease, an advanced stage of chronic kidney disease; and dialysis solutions are used to maintain life, remove toxins, and replace nutrients in the dialysis patient?s bloodstream. Its products include Renal Pure and CitraPure liquid acid concentrate, Dri-Sate dry acid concentrate and mixing systems, RenalPure powder bicarbonate concentrate, and SteriLyte liquid bicarbonate concentrates; and various ancillary products comprising blood tubing, fistula needles, specialized custom kits, dressings, cleaning agents, filtration salts, and other supplies. The company also has a license to manufacture and sell soluble ferric pyrophosphate (SFP), a Phase III clinical trial p r oduct to improve the treatment of dialysis patients with iron deficiency. Rockwell Medical Technologies sells its products to domestic hemodialysis providers through direct sales people and independent sales representation companies, as well as through independent sales agents and distributors internationally. The company was founded in 1995 and is based in Wixom, Michigan.
- [By Lisa Levin]
Thursday morning, the healthcare sector proved to be a source of strength for the market. Leading the sector was strength from Keryx Biopharmaceuticals (NASDAQ: KERX) and Rockwell Medical Inc (NASDAQ: RMTI).
Top 5 Casino Stocks To Watch For 2016: Key Tronic Corporation(KTCC)
Key Tronic Corporation, doing business as KeyTronicEMS Co., together with its subsidiaries, provides electronic manufacturing services (EMS) to original equipment manufacturers primarily in the United States, Mexico, and China. Its EMS services include product design, surface mount technologies for printed circuit board assembly, tool making, precision plastic molding, liquid injection molding, automated tape winding, prototype design, and full product builds. The company also manufactures keyboards and other input devices for personal computers. Key Tronic markets its products and services primarily through its direct sales department aided by field sales people and distributors. The company was founded in 1968 and is headquartered in Spokane Valley, Washington.
- [By Lisa Levin]
Computer Peripherals: This industry rose 2.21% by 10:15 am ET. The top performer in this industry was Key Tronic (NASDAQ: KTCC), which gained 0.3%. Key Tronic’s trailing-twelve-month ROE is 14.57%.
Top 5 Casino Stocks To Watch For 2016: Gilead Sciences, Inc.(GILD)
Gilead Sciences, Inc., a research-based biopharmaceutical company, discovers, develops, and commercializes medicines in areas of unmet medical needs in North America, South America, Europe, and the Asia-Pacific. The companys products include Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost, and Vitekta for the treatment of human immunodeficiency virus (HIV) infection in adults; and Harvoni, Sovaldi, Viread, and Hepsera products for the treatment of liver diseases. It also offers Zydelig, a PI3K delta inhibitor, in combination with rituximab, for the treatment of certain blood cancers; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa, a tablet used for the treatment of chronic angina; Lexiscan/Rapiscan injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging; Cayston, an inhaled antibiotic for the treat ment of respiratory systems in cystic fibrosis patients; and Tamiflu, an oral antiviral capsule for the treatment and prevention of influenza A and B. In addition, the company provides other products, such as AmBisome, an antifungal agent to treat serious invasive fungal infections; and Macugen, an anti-angiogenic oligonucleotide to treat neovascular age-related macular degeneration. Further, it has product candidates in various stages of development for the treatment of HIV/AIDS and liver diseases, such as hepatitis B virus and hepatitis C virus; inflammation/oncology; serious cardiovascular; and respiratory conditions, as well as diabetic nephropathy and ebola. The company markets its products through its commercial teams and/or in conjunction with third-party distributors and corporate partners. Gilead Sciences, Inc. has collaboration agreements with Bristol-Myers Squibb Company, Janssen R&D Ireland, Japan Tobacco Inc., and Galapagos NV. The company was founded in 1987 an d is headquartered in Foster City, California.
- [By Ben Levisohn]
On Tuesday, Baird predicted that Gilead Sciences (GILD) will miss earnings forecasts when it releases its financials on April 28. Barclays’ Geoff Meacham and team, however, foresee an earnings beat from Gilead and Amgen (AMGN) as well, but are more cautious on Biogen (BIIB) and Celgene (CELG). They explain why:
Large-Cap Biotechs Strength in Gilead and Amgen. We think the large caps have generally done a good job of level setting expectations going into the quarter. We see upside to Gilead from outside-the-US Hep C sales, with color on greater access in the U.S. from relaxed fibrosis restrictions potentially driving growth over the balance of 2016. We expect Amgen to also beat expectations albeit driven by Enbrel pricing. We are more cautious on Biogen (Tecfidera pricing headwinds, demand decline) and, to a lesser extent, Celgene given headwinds to Revlimid (pricing, timing of tenders, F/X) and Abraxane/Pomalyst (competition and pricing).
Gilead (Overweight: Above on Revenues and EPS. We are above the Street on 1Q16 total revenues (+$450M; Barclays: $8.4B vs. consensus: $7.95B) and non-GAAP EPS (Barclays: $3.26 vs. First Order Analytics consensus: $3.09). This is primarily driven by the Hepatitis C franchise (+$200M on Sovaldi, +$265 on Harvoni driven by OUS trends. In the U.S., script trends suggest Harvoni has established a base and has ticked up marginally in recent weeks suggesting at least that Zepatier is not making major inroads into its share. We have fine tuned HIV trends (we are ~$80M below consensus) and made minor revisions upwards on the expense side, where we are marginally above the Street.
Shares of Gilead Sciences have gained 1.2% to $98.39 at 1:28 p.m. today, while Amgen has advanced 0.3% to $160.47, Biogen has declined 0.5% to $270.50, and Celgene has fallen 0.6% to $106.96. The iShares Nasdaq Biotechnology ETF (IBB) has risen 0.5% to $282.48.
- [By Ben Levisohn]
Late Tuesday, Gilead Sciences (GILD) won a court ruling in its battle with Merck (MRK) over the intellectual property rights behind its blockbuster hepatitis-C drugs Harvoni and Sovaldi. Gabelli’s Jing He stands by her contention that Gilead is “the most undervalued stock” in biotech:
Gilead Sciences CEO John Milligan Victor J. Blue/Bloomberg News
On June 6, 2016, Mercks jury verdict against Gilead was voided by a federal judge who found that Mercks scientist and lawyer gave untruthful testimony during the trial. On March 24, 2016, a jury ruled against Gilead in Hep C patent suit and ordered the company to pay $200 million in damages to Merck, approximately 4% royalty of $5 billion Hep C US sales…
Patent Litigation and EPS Impact. Gilead proved that when applying for a patent, Merck used confidential information obtained from Pharmasset when Merck was interested in acquiring the company. Based on the judges ruling, we are updating our model by adding back $200 million on our 2016 EBITDA of $21.5 billion, resulting in $0.10 positive impact on our previous 2016 EPS of $12.15. Our projections from 2017-2020 are unchanged, as we assumed no royalty needs to be paid going forward.
Declining but Still Large Hep C Market. Gilead dominates the $23 billion Hep C market with over 90% of patient share in 2015. Its leading drugs, Sovaldi and Harvoni, generated $19.1 billion of revenue in 2015. Sovaldi was acquired from Pharmasset in 2011 for $10.4 billion and became the foundation of Gileads Hep C franchise. We expect Gileads Hep C revenue to decline at 17% through 2020 due to lowering cost-per-patient and shrinking patient population as more patients are cured by these drugs. However, the Hep C market is expected to be $10 billion by 2020, still attractive for companies to take share. Mercks own Hep C drug, Zepatier was approved in January 2016 but generated only $50 million of sales in the first quarter of
- [By Ben Levisohn]
When Merck (MRK) claimed Gilead Sciences (GILD) had infringed on its patents in creating blockbuster hepatitis-C drugs Sovaldi and Harvoni, it asked for royalties of 10% of all sales. While the jury earlier this week found Merck’s patents to be valid, it determined that Gilead would have to pay just $200 million. Leerink’s Geoffrey Porges explains: