Monthly Archives: February 2017

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A week after Michael Flynn was forced out as national security advisor after lying about discussing sanctions with the Russians, President Donald Trump named Lt. Gen. H.R. McMaster as Flynn’s replacement Monday, reported news sources.

According to McMaster’s Hoover Institution biography, where he is a visiting fellow, he assumed duties as the director, Army Capabilities Integration Center and Deputy Commanding General, U.S. Army Training and Doctrine Command in 2014, served as commander, Combined Joint Inter-Agency Task Force Shafafiyat (Transparency) in Kabul, Afghanistan, as special assistant to the commander, Mulitnational Force-Iraq from in 2007 and 2008, director, Commander’s Advisory Group at the U.S. Central Command in 2003 and 2004, and squadron executive officer and regimental operations officer in the 11th Armored Calvary Regiment from 1997 to 1999. 

McMaster has written extensively on historical and national securities topics and pen ned Dereliction of Duty: Lyndon Johnson, Robert McNamara, the Joint Chiefs of Staff, and the Lies That Led to Vietnam nearly 20 years ago.

trend trading

Two weeks after the election on Nov. 8, markets continue to rally in support of a Trump victory.

As of Nov. 22, the Dow, the S&P 500, and the Nasdaq have all hit lifetime highs.

While most investors focus on the “big guys” in infrastructure, healthcare, and financials, it’s vital not to overlook the “little guys” in the markets – especially small, domestic companies who predominantly trade in U.S. currency. Smaller companies have more room to grow and are highly affected by the expansion of the economy, because the majority (or all) of their business dealings are in America.

The Russell 2000, an index that tracks small-caps stock, has extended its winning streak to 13 sessions – its longest since February 1996.

One Month – Russell 2000 Index

trend trading: Baker Hughes Incorporated(BHI)

Advisors’ Opinion:

  • [By Tyler Crowe]

    Among the year-end numbers, there isn’t that much that pops out as extraordinary. Halliburton ended 2016 with a $6.69 per-share loss. Much of that loss, though, was the $7.4 billion in charges related to asset impairments, goodwill writedowns, and the $4.06 billion it had to charge for the termination of the merger with Baker Hughes (NYSE:BHI). So when looking at the company’s year-end results, do keep in mind that those are heavily skewed by one-time items that probably won’t have much of a material impact on the business in the coming year. Looking at operational income, we see that international markets held up rather well throughout the year, while the North American market suffered.

  • [By Brian Wu]

    GE recently doubled down on its oil and gas business after merging it with Baker Hughes (NYSE:BHI) and took a majority 62.5% stake in the merged entity. The merged entity is now the second-largest oil services business and will help GE take full advantage of increased oil and gas production under the new administration.

  • [By William Patalon III]

    Since the moment it was announced, we’ve been highly bullish on the complicated-but-intriguing deal that would combine the oilfield services unit of General Electric Co. (NYSE: GE) and all of sector rival Baker Hughes Inc. (NYSE: BHI).

  • [By Matthew DiLallo]

    Following a series of M&A announcements in the oilfield-services sector since the onset of the oil market downturn, French oil-field service company Technip and U.S. oilfield equipment company FMC Technologies (NYSE:FTI) hooked up in an all-stock deal valuing the combined company at $13 billion. Shareholders of each company will own 50% of the combined entity, to be named TechnipFMC, which implies a roughly $6.5 billion acquisition valuation for each entity. The transaction, which should close early next year, will “combine Technip’s innovative systems and solutions, state-of-the-art assets, engineering strengths, and project management capabilities with FMC Technologies’ leading technology, manufacturing, and service capabilities.” Further, it should save $400 million in annual costs by 2019. Moreover, it will enable the combined company to compete better against larger oil-field service rivals Baker Hughes (NYSE:BHI), Halliburton (NYSE:HAL), and Schlumberger (NYSE:SL B), which have all gained strength during the downturn either through M&A activities or cost savings initiatives.

trend trading: EnLink Midstream Partners, LP(ENLK)

Advisors’ Opinion:

  • [By WWW.MONEYSHOW.COM]

    EnLink Midstream Partners (ENLK) is sponsored by independent oil and gas exploration giant Devon Energy (DVN), the owner of this acreage.

    These basins offer superior economics and EnLink’s close relationship with Devon provides leveraged exposure to the upstream operator’s accelerating activity in these plays.

trend trading: Sinovac Biotech Ltd.(SVA)

Advisors’ Opinion:

  • [By Monica Gerson]

    Sinovac Biotech Ltd. (NASDAQ: SVA) is expected to post its quarterly earnings.

    Supercom Ltd (NASDAQ: SPCB) is estimated to post its quarterly earnings at $0.15 per share on revenue of $9.03 million.

trend trading: United States Cellular Corporation(USM)

Advisors’ Opinion:

  • [By Monica Gerson]

    United States Cellular Corp (NYSE: USM) is projected to report its quarterly earnings at $0.26 per share on revenue of $975.54 million.

    Koppers Holdings Inc. (NYSE: KOP) is estimated to report its quarterly earnings at $0.09 per share on revenue of $364.50 million.

trend trading: Roche Holding AG (RHHBY)

Advisors’ Opinion:

  • [By SEEKINGALPHA.COM]

    As the graphic below shows, ImmunoGen’s product pipeline is potentially significant. Furthermore, it is impressive to see the involvement and partnerships in these early stage compounds by some of the world’s leading pharmaceutical and biotech companies. This includes firms like Amgen (NASDAQ:AMGN), Roche (OTCQX:RHHBY), Bayer (OTCPK:BAYRY), Sanofi (NYSE:SNY), Eli Lilly (NYSE:LLY), and Novartis (NYSE:NVS).

  • [By SEEKINGALPHA.COM]

    As with INCY, the focus of Regeneron (NASDAQ:REGN) is cutting-edge science to produce superior molecules that have limited competition. Its flagship drug Eylea took on and defeated the incumbent, Lucentis from Roche (OTCQX:RHHBY), by having both a longer activity leading to less frequent injections into the eye and an additional mechanism of action. This provides it partial insulation from pricing pressures; and, REGN has never taken a price increase on Eylea, which has been on the market since late 2011. Eylea is now selling $5 B globally, a number that is rising and that I believe exceeds the pace set by Revlimid and almost every other drug in history (inflation not accounted for, though).

  • [By SEEKINGALPHA.COM]

    Let me first review yesterday’s positive interim Phase 2 results for AIR DNase (alidornase alfa) to treat cystic fibrosis. This phase of the trial was a 28-day switch-over study in cystic fibrosis patients who were previously treated with Roche’s (OTCQX:RHHBY) Pulmozyme (dornase alfa).

  • [By WWW.KIPLINGER.COM]

    EFAV is another low-volatility product, this one centered around the MSCI EAFE Index, an ex-U.S./Canada index that includes companies in developed markets across Europe, Australasia and the Far East. EFAV uses Barras multi-factor risk model to weed out the riskiest MSCI EAFE Index stocks, resulting in a current 230-stock low-vol portfolio stuffed with stable blue chips. Stocks like multinational foods giant Nestle SA (NSRGY) and healthcare giant Roche Holding Ltd. (RHHBY) line EFAVs top holdings, and help throw off a decent yield of about 2.5%.

  • [By SEEKINGALPHA.COM]

    AstraZeneca’s forward EV/EBITDA (2017E) of 9.73 is lower than rivals like Novartis (NYSE:NVS) and Roche (OTCQX:RHHBY) (comparing companies with strong immune-oncology assets). The 10-year range for the company’s EV/EBITDA is 3.6 to 20.9. The dividend yield is also attractive at 4.6%.

hot stocks to buy now

SAN FRANCISCO Tesla Motors CEO Elon Musk is kicking off the new year for1,000 customers with a suite of new Autopilot features on the company’s electric sedans.

The new system being activated on the limited basis is dubbed Autopilot HW2, or Hardware 2, a reference to the Tesla Model S and X vehicles built after October that are loaded with advanced radar, cameras and ultrasonic sensors. The limited dissemination of the Autopilot software upgrade is meant to ensure that any glitches are debugged before a broader rollout.

After initiating the Version 8.1 software update on New Year’s Eve, Musk tweeted that Tesla would then “hold to verify no field issues and upload to rest of fleet next week.”

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USA TODAY

hot stocks to buy now: CSX Corporation(CSX)

Advisors’ Opinion:

  • [By Craig Jones]

    Dan Nathan suggested on CNBC's Options Action a bearish trading idea in CSX Corporation (NASDAQ: CSX). He explained that the stock jumped 80 percent from its 52-week low in February and it gained around 20 percent since the election. It has significantly outperformed the Dow Jones Transportation index in that period and Nathan thinks that it is reasonable to expect a pull back.

  • [By Craig Jones]

    On CNBC's Fast Money Halftime Report, Jon Najarian spoke about unusually high options trading activity in CSX Corporation (NASDAQ: CSX). The stock traded around 15 percent higher since the Presidential election and options traders are betting that it is going to jump additional 8 percent. Traders were buying the February 38 calls on Wednesday for approximately $0.80. Najarian decided to follow the trade and he bought a call spread in CSX. He's going to be in the position for a month or two.

  • [By Ben Levisohn]

    A strange turn of events has sent shares of CSX (CSX)–and other railroads, including Union Pacific (UNP) and Canadian Pacific Railway (CP)–soaring today. It all started when Hunter Harrison announced that he would leave Canadian Pacific ahead of schedule to team up with activist investor for the turnaround of another railway company. That company is thought to be CSX.

    Getty Images

    That activist interest, more than anything CSX revealed in its earnings report on Tuesday, was enough to get Morgan Stanley’sRavi Shanker and team to upgrade its share to Equal Weight from Underweight. They explain:

    The blue-sky potential is likely to continue with the news today that Mr. E. Hunter Harrison will retire from Canadian Pacific and with the WSJ reporting that he is close to teaming up with an activist investor to target CSX…In the near term, given the potential activist interest, the stock is not likely to trade on fundamentals until a resolution, which drives our upgrade from UW to EW. Our PT goes from $24 to $37 or ~18x our FY18e EPS above the peer group but close to the mid-point of the $56 bull scenario and $24 bear scenario amongst the outcomes outlined above.

    Shares of CSX have jumped 18% to$43.55 at 11:35 a.m. today, whileCanadian Pacific Railway has climbed 4% to $151.01, and Union Pacific, which released better-than-expected earnings today, has gained 2.4% to $106.21.

  • [By Ben Levisohn]

    CSX (CSX) soared to the top of the S&P 500 today after railroad operator was upgraded by BMO Capital Markets following its big activist-inspired move last week.

    Agence France-Presse/Getty Images

    CSXgained 3.7% to $45.99 today, while the S&P 500 declined 0.3% to 2,265.20.

    BMO’sFadiChamoun andTarunJoshi explain why they upgraded CSX to Outperform from Market Perform:

    We are upgrading CSX shares to Outperform from Market Perform and raising our target price to $55 from $38. We see upside to around $80 over the medium term. Our constructive thesis is predicated on Mantle Ridge LP being successful in its effort to install Hunter Harrison as CEO of CSX. We believe that the probability of this occurring is fairly high without going down the road of a bruising proxy battle.

    CSX’s market capitalization rose to $43.1 billion today from $41.4 billion yesterday. It reported net income of $2 billion on sales of $11.1 billion in 2016.

  • [By Rich Duprey]

    I ran a screen to identify the best-performing stocks from the S&P 500 in January. The top three performers during the month were Alcoa (NYSE:AA), CSX (NASDAQ:CSX), and NRG Energy (NYSE:NRG). Let’s see why they were the big standouts and whether they can keep it going.

hot stocks to buy now: Genie Energy Ltd.(GNE)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Thursday, utilities shares fell by 0.75 percent. Meanwhile, top losers in the sector included Genie Energy Ltd (NYSE: GNE), down 5 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), down 2 percent.

  • [By Lisa Levin]

    In trading on Tuesday, utilities shares fell by 0.58 percent. Meanwhile, top losers in the sector included Middlesex Water Company (NASDAQ: MSEX), down 2 percent, and Genie Energy Ltd (NYSE: GNE), down 4 percent.

hot stocks to buy now: QCR Holdings Inc.(QCRH)

Advisors’ Opinion:

  • [By Keith Fitz-Gerald]

    My favorite at the moment is QCR Holdings Inc. (NasdaqGM:QCRH).

    Founded in 1993 and headquartered in Moline, IL, the bank has a strong regional lending base in Illinois and Iowa that should grow in line with the broader national economy. I particularly like the fact that the bank considers itself relationship-driven at a time when trust is in short supply.

hot stocks to buy now: Israel Chemicals Shs(ICL)

Advisors’ Opinion:

  • [By Claudia Maedler]

    In Israel, the TA-25 Index (TA-25) gained 1.9 percent at the close in Tel Aviv as Israel Corp. jumped 9 percent, the most since July 2009, to 1,755 shekels. The shares soared along with those of its Israel Chemicals Ltd. (ICL) unit, which advanced 6.4 percent on speculation that a possible change in ownership of Russian potash producer OAO Uralkali could help stabilize prices of the crop nutrient.

Red Robin Gourmet Burgers Q4 Earnings Reports: Improvement?

The Q4 2016 earnings report for small cap gourmet burger stock Red Robin Gourmet Burgers, Inc (NASDAQ: RRGB) is scheduled forafter the marketcloses onTuesday (February 21st). Unlike most other restaurant chains, Red Robin Gourmet Burgersis focused on company-owned restaurantswhich gives it full control over operations along with profits.

A technical chart for Red Robin Gourmet Burgers shows a mix of conflicting trend lines:

A long term performance chart shows more recent burger IPOs like small caps Habit Restaurants Inc (NASDAQ: HABT) and Shake Shack Inc (NYSE: SHAK) underperforming while Red Robin Gourmet Burgers andSonic Corporation (NASDAQ: SONC) have remained in positive territory:

In early November, Red Robin Gourmet Burgersreported financial results for the third quarter ended October 2, 2016. Total revenues increased 4.9% to$297.3 million ascomparable restaurant revenue decreased 3.6% driven by a 2.4% decrease in guest counts and a 1.2% decrease in average guest check.

Restaurant Revenue Performance (1)

Q3 2016 Q3 2015
Average weekly sales per unit:

Company-owned Total (2)

$ 53,387 $

55,780

Company-owned Comparable (2)

$ 53,667 $ 55,694
Franchised units Comparable $ 59,751 $ 60,701
Total operating weeks:
Company-owned units 5,470 4,978
Franchised units 1,032 1,195
_______________________________________________________

The net loss was $1.3 million versus net income of $8.3 million. The CEO commented:

The investments we are making in Everyday Value and improved service are already having a positive impact on our performance versus the competition. We have made significant gains in traffic and guest satisfaction. We look forward to sharing more about these outcomes, as well as our new direction on capital deployment, specifically a significant reduction in planned new unit development.

For the fourth quarter, the Company expects total revenues to grow between 4.0% and 6.0%, driven by increased operating weeks associated with locations opened and acquired in 2015 and 2016, partially offset by lower comparable restaurant revenue between 1.5% and 3.5%. The Company plans to open five new Red Robin restaurants in the fourth quarter.

Finally, here is a quick recap of small cap Red Robin Gourmet Burgers recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page:

12/31/20153/31/20166/30/20169/30/2016
EPS Est. 0.81 1.11 0.8 0.38
EPS Actual 0.86 1.27 0.75 0.38
Difference 0.05 0.16 -0.05 N/A
Surprise % 6.20% 14.40% -6.30% N/A
EPS TrendCurrent Qtr. (Dec 2016)Next Qtr. (Mar 2017)Current YearNext Year
Current Estimate 0.34 1.21 2.77 2.91
7 Days Ago 0.35 1.21 2.77 2.92
30 Days Ago 0.37 1.21 2.8 2.94
60 Days Ago 0.45 1.23 2.88 3.1
90 Days Ago 0.46 1.24 2.89 3.11

Do you like this trading idea and want more trading setups delivered to you every day? Consider investing in a subscription to our SmallCap Network Elite Opportunity (SCN EO) portfolio newsletter or our Under the Radar Movers newsletter where you’ll get more and even better trading setups, investing ideas or tips.

investing for beginners

"You're so lucky Steve… You've gotten to meet and work with all these famous guys…"   When I hear that, I usually say something like, "Yeah, it's hard to believe… I have been pretty fortunate!" And I leave it at that.   But the truth is much different… It's NOT luck. It's NOT good fortune.   There's a secret to doing what I've done. And I will share it with you today…   Maybe there is a bit of "luck" involved… But it didn't happen without me putting myself in luck's line of fire. Let me give you an example of what I mean…   A while back, I knew I was going to have the chance to shake hands with one of my heroes.   When I met him, I could have just said, "Uh, gee, it's nice to meet you. I'm a big fan." But that would have been a missed opportunity.

investing for beginners: Staples, Inc.(SPLS)

Advisors’ Opinion:

  • [By Money Morning Staff Reports]

    Since 2011, Staples Inc. (Nasdaq: SPLS) has cut 16% of its full-time U.S. workforce — down to 44,000 from 53,000 employees five years ago.

    During that same period, the company’s annual sales declined a whopping 9% — down to $22.5 billion from $24.7 billion.

  • [By Brian Feroldi, Anders Bylund, and Cory Renauer]

    Read on to see why a team of Fools think thatStaples (NASDAQ:SPLS), Mattel (NASDAQ:MAT), and GNC Holdings (NYSE:GNC) are all high-yield stocks that should be avoided.

  • [By Javier Hasse]

    Multiple-award-winning Trimaker is the leader in terms of sales in 3D printing in the region, serving clients like Staples, Inc. (NASDAQ: SPLS), Toyota Motor Corp (ADR) (NYSE: TM), Kraft Heinz Co (NASDAQ: KHC) and Telefonica S.A. (ADR) (NYSE: TEF). The company not only manufactures its own 3D printers, but also offers materials and related services.

  • [By Casey Wilson]

    The company was set to merge with its last remaining rival, Staples Inc. (Nasdaq: SPLS), this year, but was denied by a federal judge on May 10 because of antitrust concerns.

investing for beginners: Eastman Kodak Company(KODK)

Advisors’ Opinion:

  • [By William Patalon III]

    The first trade spat that I covered during my newspaper days was one back in the mid-1990s that pitted Eastman Kodak Co. (NYSE: KODK) against Fujifilm Holdings Corp. (OTC ADR: FUJIY).

investing for beginners: Resolute Energy Corporation(REN )

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    Or how about Resolute Energy (REN) , which has a big position in the Permian. Why is that stock not quitting? Same with Diamondback Energy (FANG) . How can that one keep roaring?

  • [By Dustin Parrett]

    Company Name

    Share PriceYTDMarket CapClayton Williams Energy Inc. (NYSE: CWEI)$138.8216.4%2.4BDiamondback Energy Inc. (Nasdaq: FANG)$106.365.42%$9.38BWestern Gas Partners LP (NYSE: WES)$65.6411.71%$9.67BTesoro Logistics LP (NYSE: TLLP)$59.3416.79%$6.25BResolute Energy Corp. (NYSE: REN)$46.0811.87%$931.13MAntero Midstream Partners LP (NYSE: AM)$34.9813.28%$6.4BExterran Corp. (NYSE: EXTN)$33.9942.22%$1.19BDominion Midstream Partners LP (NYSE: DM)$32.9011.34%$2.6BNextEra Energy Partners LP (NYSE: NEP)$31.1922.12%$1.68BArchrock Inc. (NYSE: AROC)$16.0021.21%$1.12B

    While some of these stocks have performed well, we arent recommending this list of natural gas stocks. Thats because we arent interested in stocks that have already peaked at Money Morning; were interested in the next big winner. And we have one that could surge in 2017

investing for beginners: Oxford Industries Inc.(OXM)

Advisors’ Opinion:

  • [By Ben Levisohn]

    Looking at recent historical deals, we arrive at a $18-$23 potential deal range. We analyzed transactions that have been announced over the past four years and involved companies catering to a higher income customer. These deals include Southern Tide (acquired by Oxford Industries (OXM)), Joe’s Jeans (acquired by Sequential Brands Group (SQBG)), prAna (acquired by Columbia Sportswear (COLM)), The Jones Group (acquired by Sycamore Partners [private] and Juicy Couture (acquired by Authentic Brands Group [private]). The average EV/EBITDA multiple of these transactions are 12.9x (in line with KATE’s 5-year historical average of 12.1x) and implies a potential deal range of $22-$23. When taking the average of recent (F13-16) deals implies an ~10.5x EV/EBITDA multiple. When applying the ~10.5x multiples to KATE’s trailing EBITDA, we arrive at an $18- $19 potential share price.

  • [By Lisa Levin]

    Oxford Industries Inc (NYSE: OXM) was down, falling around 11 percent to $64.05. Oxford Industries reported a narrower-than-expected loss for its third quarter. The company projects full-year earnings of $3.50 to $3.65 per share, and revenue of $1.02 billion to $1.03 billion.