Piper Jaffray’s Joshua Schimmer and team offer their take on the Biogen (BIIB) takeover speculation that sent shares of the biotech giant soaring this afternoon:
Bloomberg News/Scott Eisen
Biogenshares are trading higher on a WSJ report which indicates the company may have interest from prospective pharma buyers. The WSJ is one of the more credible sources for such speculation and is often a publication used to put companies ‘in play’, we believe. Because of its higher bar for sourcing M&A interest such as this, we think the report is a strategy being used to catalyze a potential deal. That said, we believe there are a number of challenges to be overcome for any transaction to materialize. As we have noted recently our outlook on BIIB is more optimistic, and there is now a new dynamic to the investment opportunity…
Top 5 Construction Material Stocks To Own Right Now: Amira Nature Foods Ltd(ANFI)
Amira Nature Foods Ltd. engages in processing, distributing, and marketing packaged Indian specialty rice, primarily basmati rice; and other food products. The company provides various types of basmati rice, specialty rice and value add meals, ready-to-eat snacks, ready to heat meals, edible oils, and organic products for retailers under the Amira brand; and non-basmati rice. It also sells bulk commodities, including wheat, barley, legume, maize, sugar, soybean meal, onion, potato, and millets to trading firms. Amira Nature Foods Ltd. sells its products to buyers in the Asia Pacific, the Middle East, Europe, North Africa, and North America; and distributors and retail chains in India. The company was founded in 1915 and is based in Dubai, the United Arab Emirates.
- [By Roberto Pedone]
Another earnings short-squeeze prospect is packaged specialty rice and other food products distributor Amira Nature Foods (ANFI), which is set to release numbers on next Monday after the market close. Wall Street analysts, on average, expect Amira Nature Foods to report revenue of $132.37 million on earnings of 32 cents per share.
The current short interest as a percentage of the float for Amira Nature Foods is extremely high at 26.6%. That means that out of 17.70 million shares in the tradable float, 4.72 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.2%, or by 356,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of ANFI could easily rip sharply higher post-earnings as the shorts move fast to cover some of their trades.
From a technical perspective, ANFI is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock just recently bounced higher off some near-term support at $15.25 a share. That bounce is starting to push shares of ANFI within range of triggering a near-term breakout trade post-earnings.
If you’re bullish on ANFI, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $17 to $17.98 a share and then above more resistance at $18.52 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 174,102 shares. If that breakout develops post-earnings, then ANFI will set up to re-test or possibly take out its next major overhead resistance levels at $19.86 to $20.29 a share, or even its 52-week high at $25 a share.
I would simply avoid ANFI or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term supp
Top 5 Construction Material Stocks To Own Right Now: NextEra Energy, Inc.(NEE)
NextEra Energy, Inc., through its subsidiaries, generates, transmits, and distributes electric energy in the United States and Canada. The company generates electricity from gas, oil, solar, coal, petroleum coke, nuclear, and wind sources. As of December 31, 2015, it served approximately 9.5 million people through approximately 4.8 million customer accounts in the east and lower west coasts of Florida. The company had approximately 46,400 megawatts of generating capacity. It also leases fiber-optic network capacity and dark fiber to telephone, wireless, and Internet companies. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1984 and is headquartered in Juno Beach, Florida.
- [By Ben Levisohn]
Clinton 15 stock basket (DBUSCLNT): UnitedHealth Group (UNH), Humana (HUM), McKesson (MCK), Aecom (ACM), Quanta Services (PWR), ExxonMobil (XOM), Alcoa (AA), NextEra Energy (NEE), Cree (CREE), First Solar (FSLR), Facebook (FB), Netflix (NFLX), Prudential Financial (PRU), Citigroup (C), Union Pacific (UNP).
Arch Coal, Inc., incorporated on June 20, 1969, is a coal producer. The Company is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company operates, or contracts out the operation of over 10 active mines in the United States. The Company’s segments include the Powder River Basin, with operations in Wyoming, and the Appalachia, with operations in West Virginia, Kentucky, Maryland and Virginia. The Company also sells coal from operations in Colorado and Illinois.
Powder River Basin
The Powder River Basin consists of Black Thunder and Coal Creek mines. Black Thunder is a surface mining complex located on approximately 35,800 acres in Campbell County, Wyoming. The Black Thunder complex extracts steam coal from the Upper Wyodak and Main Wyodak seams. The Black Thunde r mining complex has approximately 1.2 billion tons of proven and probable reserves. The Black Thunder mining complex consists of active pit areas and over three loadout facilities. Coal Creek is a surface mining complex located on approximately 7,400 acres in Campbell County, Wyoming. The Coal Creek mining complex extracts steam coal from the Wyodak-R1 and Wyodak-R3 seams. The Coal Creek mining complex has approximately 153.7 million tons of proven and probable reserves. The Coal Creek complex consists of active pit areas and a loadout facility.
The Company’s mines in Appalachia include Coal-Mac, Lone Mountain, Mountain Laurel, Beckley, Vindex, Sentinel and Leer. Coal-Mac is a surface and underground mining complex located on approximately 46,000 acres in Logan and Mingo Counties, West Virginia. Surface mining operations at the Coal-Mac mining complex extract steam coal primarily from the Coalburg and Stockton seams. The Coal-Mac mining complex has approximately 24.6 million tons of proven and pr! obable reserves.
Lone Mountain is an underground mining complex located on approximately 54,000 acres in Harlan County, Kentucky and Lee County, Virginia. The Lone Mountain mining complex extracts steam and metallurgical coal from the Kellioka, Darby and Owl seams. The Lone Mountain mining complex has approximately 10.2 million tons of proven and probable reserves. The complex consists of approximately three underground mines operating over six continuous miner sections.
Mountain Laurel is an underground and surface mining complex located on approximately 38,200 acres in Logan County and Boone County, West Virginia. Underground mining operations at the Mountain Laurel mining complex extract steam and metallurgical coal from the Cedar Grove and Alma seams. Surface mining operations at the Mountain Laurel mining complex extract coal from a number of different splits of the Five Block, Stockton and Coalburg seams. The complex consists of over one under ground mine operating a longwall and approximately one continuous miner sections, a preparation plant and a loadout facility.
The Beckley mining complex is located on approximately 15,400 acres in Raleigh County, West Virginia. Beckley is extracting low-volatile metallurgical coal in the Pocahontas No. 3 seam. The Vindex mining complex consists of a surface mine located on approximately 40,300 acres in Maryland and West Virginia. Mining operations extract coal from the Upper Freeport, Middle Kittanning, Pittsburgh, Little Pittsburgh and Redstone seams.
The Sentinel mining complex consists of one underground mine, a preparation plant and a loadout facility located on approximately 25,600 acres in Barbour County, West Virginia. Mining operations extract coal from the Clarion coal seam. The Leer complex, located in Taylor County, West Virginia, includes approximately 40.1 million tons of coal reserves. It has both steam and metallurgical quality coal i n the Lower Kittanning seam and is a part of approximately 7! 9,400 acr! es that is considered its Tygart Valley area.
The West Elk is an underground mining complex located on approximately 17,800 acres in Gunnison County, Colorado. The West Elk mining complex extracts steam coal from the E seam. The West Elk mining complex has approximately 53.5 million tons of proven and probable reserves. The West Elk complex consists of a longwall, continuous miner sections and a loadout facility. The Viper mining complex consists of an underground coal mine and a preparation plant located on approximately 46,500 acres in central Illinois near the city of Springfield. Mining operations extract steam coal from the Illinois No. 5 seam, also referred to as the Springfield seam. It has approximately 37.2 million tons of proven and probable reserves.
The Company competes with Alpha Natural Resources, Inc., Cloud Peak Energy, CONSOL Energy Inc. and Peabody Energy Corp.
- [By Robert Weinstein]
Lawsuit after lawsuit, a billion dollars in cost overruns, taxpayer subsidies and the most expensive coal plant to operate causing electric rates to skyrocket, if this becomes the norm. The new project is called Plant Ratcliffe by Southern Co. Plant Ratcliffe is quite the boondoggle, but proponents say it always costs more to build the first one and costs will come down as the technology improves. More plants are in the planning stages and may bring a needed shot in the arm to mining stocks. Alpha Natural Resources (ANR), Walter Energy (WLT), Arch Coal (ACI), Cliffs Natural Resources (CLF), Peabody Energy (BTU), and James River Coal (JRCC) are companies that may benefit from increased demand for coal. Not all coal or coal companies are equal, so it’s crucial to discriminate based on your investment time-horizon goals. With that said, the announcement should have been followed by a deep sell-off in coal and utility related stocks. But something happened. Or, rather, didn’t happen. The above coal stocks didn’t sell off tremendously and are largely moving along with the rest of the market today. This is noteworthy because stocks don’t bottom on good news, they reach a bottom on awful news. Let me explain: When a stock chart continues trending lower, what you’re witnessing is investors throwing in the towel and moving on. Leaving aside bankruptcies for a moment, almost all stocks have a core group of investors that are commonly known as the “strong hands.” A stock is at the bottom when the weak hands are gone. At some point, distressing news (like an unfavorable EPA announcement regarding coal) hits the wire and the related stock or stocks react with little or no movement. This is what we are witnessing right now in coal-related companies.
Top 5 Construction Material Stocks To Own Right Now: MercadoLibre Inc.(MELI)
MercadoLibre, Inc., together with its subsidiaries, hosts online commerce and payments platforms in Latin America. Its services are designed to provide its users with mechanisms to buy, sell, pay for, and collect on e-commerce transactions. The company principally offers MercadoLibre marketplace, an automated online commerce service, which permits businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. Its MercadoLibre marketplace enables registered users to list and purchase motor vehicles, vessels, aircraft, real estate, and other services through online classified listings; and Internet users to browse through various products and services that are listed on its Website and to register with MercadoLibre to list, bid for, and purchase items and services. The company also provides MercadoPago, an integrated online payments solution to facilitate transactions on and off the MercadoLibre marketplace by providing a mechanism that allows its users to send and receive payments online. In addition, it offers MercadoClics advertising program that allows businesses to promote their products and services on the Internet. This program enables users and advertisers to place, display, and/or text advertisements on its Web pages to promote their brands and offerings. Further, the company provides MercadoShops on-line stores solution, a software-as-a-service, which allows users to set-up, manage, and promote their own on-line Webstores. As of December 31, 2010, the company operated online commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Uruguay, and Venezuela; online payments solutions directed towards Argentina, Brazil, Mexico, Venezuela, Chile, and Colombia; and a real estate classified platform that covers various areas in Florida. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.
- [By Roberto Pedone]
Mercadolibre (MELI) operates an online trading site for the Latin American markets. This stock closed up 7.1% at $128.50 in Monday’s trading session.
Monday’s Volume: 814,000
Three-Month Average Volume: 479,008
Volume % Change: 69%
From a technical perspective, MELI ripped higher here right above its 50-day moving average of $117.07 with above-average volume. This move pushed shares of MELI into breakout territory, since the stock took out some near-term overhead resistance at $125.30. Shares of MELI are now quickly moving within range of triggering another big breakout trade. That trade will hit if MELI manages to take out some more near-term overhead resistance at $130.74 with high volume.
Traders should now look for long-biased trades in MELI as long as it’s trending above $125 or $124 and then once it sustains a move or close above $130.74 with volume that’s near or above 479,008 shares. If that breakout triggers soon, then MELI will set up to re-test or possibly take out its 52-week high at $136.52.
- [By Scott Rubin]
Stock gainers included Mercadolibre Inc (NASDAQ: MELI), up almost 14 percent, and Nu Skin Enterprises, Inc. (NYSE: NUS), which added 12 percent. The positive gains in both stocks were due to strong earnings reports. Shares of Liberty Interactive Group (NASDAQ: QVCA) plunged almost 22 percent on Friday due to disappointing sales growth in its fiscal second quarter. Pharmaceutical giant Bristol-Myers Squibb Co (NYSE: BMY) lost 16 percent after a disappointing study involving its Opdivo drug.
Top 5 Construction Material Stocks To Own Right Now: Student Transportation Inc(STB)
Student Transportation Inc., together with its subsidiaries, provides student transportation solutions in North America. The company offers contracted, managed, special needs transportation, direct-to-parent, and charter services. As of October 1, 2015, it operated approximately 13,000 vehicles. The company delivers its services through drivers, dispatchers, maintenance technicians, terminal managers, information technology professionals, and members of local communities. The company was formerly known as Student Transportation of America Ltd. and changed its name to Student Transportation Inc. in November 2009. Student Transportation Inc. was founded in 1997 and is headquartered in Barrie, Canada.
- [By Monica Gerson]
Student Transportation Inc (NASDAQ: STB) is estimated to post its quarterly earnings at $0.04 per share on revenue of $167.40 million.
Exar Corporation (NYSE: EXAR) is projected to post its quarterly earnings at $0.09 per share on revenue of $38.38 million.