Asian currencies were hit Friday by a perceived easing by the European Central Bank, even as the Asian stock market reaction was mostly positive.
Japans Nikkei NIK, +1.19% was up 1.1%, Australias S&P/ASX 200 XJO, +0.31% gained 0.3% and Taiwans Taiex Y9999, +0.18% was up 0.1%.
top stocks to invest in: Transcananda Pipelines Ltd.(TRP)
- [By Ben Levisohn]
In a number of articles recently, following the US recent revival and potential approval of the previously blocked Keystone XL pipeline, a number of estimates have been provided suggesting a pending boom for the US steel industry is on the horizon (and US steel stocks have reacted in kind). In fact, this optimism, we believe, peaked today when a report from one of our competitors was published claiming that, the keystone XL pipeline could increase line pipe demand by 14.7% for 2 years. The problem here, we believe, rests with the facts that: (a) TransCanada (TRP) has already taken, and paid for, the steel to build the Keystone XL pipeline (the steel currently sits in storage facilities in both Regina, Canada and Arkansas, United States), (b) neither US Steel (X; SELL), AK Steel, Steel Dynamics, or Nucor have the ability to make the specialized steel required for the miles of pipe associated with this project, to include both the thickness and pressure requirements , according to this article from Reuters, and (c) assuming some of the pipe does need replacement, this would likely come from international steel makers who are capable of producing the specialized steel (again, as highlighted in this Reuters article).
- [By Paul Ausick]
That includes pipeline companies like Kinder Morgan Inc. (NYSE: KMI), which already operates a pipeline transporting natural gas from Texas into Mexico, and master limited partnerships (MLPs) Energy Transfer Partners L.P. (NYSE: ETP) and TransCanada Corp. (NYSE: TRP), the company that has (so far) failed to get U.S. approval for its Keystone Pipeline expansion from Canada’s oil sands across the U.S. border.
- [By WWW.KIPLINGER.COM]
Energy stocks were driven by a hefty dose of M&A during the third quarter. And that will drive returns for TransCanada Corporation (TRP) during the next one.
top stocks to invest in: Star Bulk Carriers Corp.(SBLK)
- [By James E. Brumley]
When most investors think of potential competitive threats to drybulk shippers like Star Bulk Carriers Corp. (NASDAQ:SBLK) or Euroseas Ltd. (NASDAQ:ESEA), Double Crown Resources Inc (OTCMKTS:DDCC) doesn’t come to mind. Indeed, DDCC doesn’t come to mind for many investors at all, as for all intents and purposes the company it is today didn’t exist until a few months ago. Age, however, has nothing to do with how disruptive it could prove to be for the likes of Euroseas or Star Bulk Carriers. Its underlying idea is brilliant, and it’s only a matter of time before it catches on within the commodity-transportation community.
What if there was a way to remove all the risks and hassle of shipping things like pellets or beans or salt – normally delivered in drybulk vessels – but still utilize all the flexibility of intermodal containers (the big 20-foot boxes that fit on a truck and a train and on top of the deck of a boat)? There is. It’s called Translock2 (Translock Squared). It was designed by Double Crown Resources, and it’s going to revolutionize the way many material companies deliver their goods.
The nearby image is a Translock2 container. It should look familiar – it’s essentially an intermodal container in terms of size and shape, but mechanically is a delivery and dispensing platform for drybulk goods. The design allows commodities like sand or livestock feed to be moved with all the flexibility of intermodal transportation, but without any of the headache of aggregating and splitting up those goods to get them properly shipped to their final destination. With Translock2, drybulk pu rchases are packaged up by the seller at the supply source, and then delivered — just as ordered — all the way to the buyer’s site in the container. No material is lost en route, and no distributor or middleman needs to bother splitting up one large order into smaller ones.
Its development is worth noting, as it explicitly circumvents the need for drybulk ves
- [By Roberto Pedone]
Star Bulk Carriers (SBLK) provides worldwide transportation of drybulk commodities through its vessel-owning subsidiaries for a range of customers and minor bulk cargoes including iron ore, coal, grain, cement and fertilizer. This stock closed up 7.9% at $10.58 in Monday’s trading session.
Monday’s Volume: 243,000
Three-Month Average Volume: 64,367
Volume % Change: 228%
From a technical perspective, SBLK jumped sharply higher here right above some near-term support at $9.47 with above-average volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $5.37 to its recent high of $11.53. During that move, shares of SBLK have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SBLK within range of triggering a near-term breakout trade. That trade will hit if SBLK manages to take out its 52-week high at $11.53 and then once it clears some past resistance at $11.98 with high volume.
Traders should now look for long-biased trades in SBLK as long as it’s trending above near-term support at $9.47 and then once it sustains a move or close above those breakout levels with volume that hits near or above 64,367 shares. If that breakout triggers soon, then SBLK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $14 to $15.
- [By Ben Levisohn]
StarBulk Carriers (SBLK) and Safe Bulkers (SB) have more than tripled during the past 12 months, while Golden Ocean Group (GOGL) has more than doubled. So it must be time for an upgrade right?
That’s exactly what Morgan Stanley did last night, when they upgraded StarBulk Carriers, Safe Bulkers, and Golden Ocean Group to Overweight from Equal Weight, while lifting arguing that the “recovery is still not priced in.” They explain:
These companies have young fleets, mostly larger vessels, low cost structures, high operational and financial leverage to repricing in the dry bulk segment, and ability to start paying dividends in YE2018. Dry bulk stocks have nearly doubled YoY, but are still cheap in historical terms, in our view. The group trades at the historical 100-110% EV/Fleet Value, discounting no further increases in vessel values that are still ~50% below the long-term historical averages, significantly lagging the recent move in charter rates. We still see significant upside as charter rates increase, vessel values normalize, and capital returns to the industry as the group’s overall market cap increases.
Shares of StarBulk Carriers have climbed 16% to $11.72 at 3:50 p.m. today, while Safe Bulkers has jumped 13% to $2.13, and Golden Ocean Group has gained 9.6% to $8.13.
Too bad I recommended buying Golar LNG (GLNG) and avoiding the dry-bulk shippers back in November.
top stocks to invest in: United Natural Foods, Inc.(UNFI)
- [By Peter Graham]
The Q1 2017 earnings report for small cap natural andorganic foods stock United Natural Foods, Inc (NASDAQ: UNFI) is scheduled for after the market closes onWednesday (December 7th). Shares tend to move in tandeem with Whole Foods Market, Inc (NASDAQ: WFM) who accounts for more than 30% of sales and were falling in September on concerns about WFM’s weakness with Wolfe Research’s Scott Mushkin commenting:
- [By Peter Graham]
The Q2 2017 earnings report for small cap natural andorganic foods stock United Natural Foods, Inc (NASDAQ: UNFI) is scheduled for after the market closes onWednesday (March 8th). United Natural Foods shares will tend to move in tandem with Whole Foods Market, Inc (NASDAQ: WFM) who accounts for more than 30% of sales.
top stocks to invest in: Oceaneering International, Inc.(OII)
- [By Monica Gerson]
Oceaneering International (NYSE: OII) is projected to post its quarterly earnings at $0.35 per share on revenue of $641.85 million.
Tennant Company (NYSE: TNC) is estimated to report its quarterly earnings at $0.25 per share on revenue of $180.93 million.
- [By Lisa Levin]
On Friday, energy shares surged by 2.60 percent. Top gainers in the sector included Oceaneering International (NYSE: OII), Willbros Group Inc (NYSE: WG), and Cobalt International Energy, Inc. (NYSE: CIE).
top stocks to invest in: VistaGen Therapeutics, Inc. (VTGN)
- [By SEEKINGALPHA.COM]
Four ideas turned up in this screen that might be of interest (prices as of February 9th close):
Heron Therapeutics (NASDAQ:HRTX) by ONeil Trader – published February 3rd, 2017, $525M Market cap, down ~2% since publication, author’s price target offers 130% upside. HRTX isn’t a generic drug provider, but its CINV franchise vs. the growth of a new drug gives it a similar sort of profile, and arguably a favorable risk/reward; commenters were mostly positive on the thesis. VistaGen Therapeutics (OTC:VTGN) by Logical Assessment – published July 29, 2016, $24M market cap, down 16% since publication, author’s price target offers 100%+ upside. This is obviously deeper into the speculative pile, but if the author’s thesis holds about VistaGen’s unique angle in the antidepressant drug space, comparable deals suggest good upside. (Of course, it’s always dangerous to rely solely on comparables). Dr. Reddy’s Laboratories (NYSE:RDY) by Buddy Lyons – published July 5, 2016, $7.6B m arket cap, down ~13% since publication, author’s price target offers just shy of 100% upside. Dr. Reddy’s is a more obvious comparable to TEVA, with a generics business but also a manufacturing business and a proprietary products branch. The company bought a divestiture package of drugs from TEVA as part of the Allergan/Actavis deal. A big overhang was an FDA warning letter; the FDA is due to reinspect facilities this month or next, which could resolve that one way or another. Lannett (NYSEMKT:LCI) by Lateral Capital Management – published May 27, 2016, $750M market cap, down ~9% since publication, author’s price target offers 75% upside. LCI’s trading had been 90% correlated with Valeant, but Lateral Capital Management argues that the correlation is unjustified. The article does a deep dive into the company’s valuation and credit risk, and was well received at the time, even if the market hasn’t agreed…yet.
I also checked to see if there are any ideas starting to play out on the short si
top stocks to invest in: Medivation Inc.(MDVN)
- [By Ben Levisohn]
Medivation (MDVN) has soared 20% to $80.41 after agreeing to be purchased for $14 billion, or $81.50 a share, by Pfizer (PFE). Pfizer has declined 0.7% to $34.75.
- [By Scott Rubin]
Big gainers on the day included Intersil Corp (NASDAQ: ISIL), which jumped 20 percent on news of a buyout, and Medivation (NASDAQ: MDVN), which added 20 percent on a deal with Pfizer (NYSE: PFE) related to its cancer drug. Cotiviti Holdings Inc (NYSE: COTV) lost around 9 percent in the wake of a mid-day sell-off and Marathon Oil Corporation (NYSE: MRO) fell 7 percent in the wake of a management shakeup.
- [By Ben Levisohn]
Macro considerations have continued to weigh on stocks whenever they’ve shown signs of life and consensus estimates for many of the large cap companies have been declining. With the sector’s underperformance, the delta in the average PEG ratio for biotech growth companies (excluding Medivation (MDVN)) compared to non-biotech growth companies is slightly wider than it’s been for most of the year. As such, we remain constructive on the sector. That said, while valuations are attractive on a relative basis, there remains some uncertainty for the group and we would not be surprised to see the volatility continue…