Celgene Corporation (NASDAQ: CELG) has been correcting a bit over the last week along with the rest of the market.
As opposed to some parts of the market (small caps, core international and certain industry sectors), however, Celgene's “correction” has been as easy to tolerate for the bulls, as one can imagine. Will it continue to be this palatable, or will things begin to sour for this top-performing stock?
What The Bulls See
Strong net profits of 20.92 percent.
Strong annual levered free cash flow of $1.75 billion.
A strong balance sheet with more than $6 billion in cash reserves and a current ratio of 5.44.
Cheap valuation metric: a price-to-earnings ratio of just under 20 versus estimated 2015 revenue growth of 21.6 percent and estimated EPS growth of 32.9 percent.
A stock with a beautiful uptrend in place.
What The Bears See
Expensive valuation metrics: a price-to-book over 13 and a price-to-sales over 10.
A relatively high debt-to-equity ratio of 142.96 percent.
At $95.64, the stock has room to fall short-term, even if the positive trends remain in place: “Correction support” comes into play at the $89.70-$91.30 range and the long-term uptrend line comes into play at around $83.
Technicians still call Celgene's price chart very bullish overall. They note that the stock has two potential short-term Fibonacci retracement support lines at $91.30 and $89.70. If those fail to hold up, the next key level of support would be the July pivot low at $82.90, which happens to also be where Celgene's uptrend line comes into play.
Any hold of support at any of the above levels, however, should lead to a continuation of the recent bullish trading action. The upside target for that move, should it occur, will be the $105-$110 range, depending on how fast Celgene progresses higher.
Cabot Corporation (CBT) and Westmoreland Coal Company (WLB) announced today that they plan to increase activated carbon manufacturing capacity in North America. The joint venture partners plan to double the capacity of their Bienfait, Saskatchewan manufacturing facility to meet the future demand for mercury removal products for use in the coal-fired utility market.
The jointly owned facility will produce an additional 35 million pounds of powdered activated carbon. The Bienfait plant will continue to be served from a co-located mine that is operated by Westmoreland. The additional capacity will be commissioned in 2016.
The expansion will produce Cabot’s benchmark DARCO® Hg family of mercury removal products. Cabot will be responsible for the marketing of these products as well as the technology package, while Westmoreland continues to be the operator of the plant.
“The implementation of new mercury control technology throughout the North American coal-fired power generating fleet, driven by the U.S. Environmental Protection Agency (EPA) Mercury and Air Toxics Standard (MATS), will be a major driver of growth in the activated carbon market,” said Friedrich von Gottberg, senior vice president and president Cabot Purification Solutions. “We anticipate significant demand increases over the next three years as U.S. coal-fired utilities comply with the MATS regulation. Once commissioned, our new capacity will help us expand our market leadership and continue to be a long-term, reliable source of high quality products for our customers in North America.”
“We are pleased with the expansion and deepening of our relationship with Cabot. Our activities in the activated carbon industry enable us to increase our presence in the industrial environmental market,” said Keith Alessi, Chief Executive Officer, Westmoreland.
The third quarter ended today so earnings and accompanying conference call will have a lot to say about where we are headed in the next few months. News both good and bad on the current testing of products of course can have a short term impact.
All stocks do not trade with the market. News that will affect future earnings is what moves companies and good news has propelled this company at least in the short run. I think I bought shares a while back just under $2 and then it tanked for a while because there was really nothing new at the time. Stocks do not move on hope but in starts and stops based on news.
Nice thing is that they have lots of cash flow from existing products to sustain their R&D program. Many of the up and comers do not have that to sustain them. Their market cap is only $36 billion so they have a lot of room to grow before approaching the law of large numbers. In this industry who even knows what that can be.
Dominion welcomes FERC approval of Cove Point LNG Export Project (D) : Co welcomed the Federal Energy Regulatory Commission's approval to site, construct, and operate the Cove Point LNG liquefaction and export project.
Dominion must review and accept the order. Upon completion of that review, the company expects to file an implementation plan describing how it will comply with the conditions set forth in the order. Dominion expects to ask the FERC for a "Notice to Proceed" at that time and plans to begin construction when the notice is received. This process -- from Dominion review through FERC's notice -- is expected to take several weeks.
The construction of the export project, which is estimated to cost between $3.4 billion and $3.8 billion, will create thousands of skilled construction jobs, 75 permanent jobs and an additional $40 million in annual tax revenue to Calvert County. Other economic benefits included millions of dollars of new revenues for Maryland and the federal government as well as a reduction in the nation's trade deficit by billions of dollars annually.
1. Where did you read this?? 2. It could make some sense because they have been getting rid of non-core assets. They have been moving away from natural gas towards oil. However, they just made an aquisition today.
From NI website:
Under the separation plan, how will current NiSource stockholders be treated? NiSource shareholders would retain their current shares of NiSource stock and will receive an equal proportion of shares of stock in CPG (NYSE: COLP). The transaction is expected to be tax-free to NiSource and its shareholders. The actual number of CPG shares that would be distributed to NiSource shareholders will be determined prior to closing, which is expected in mid-2015. In addition to final board authorization, the potential distribution of CPG shares is subject to the satisfaction of a number of conditions, and there is no assurance that such distribution will occur.
How will the separation be financed? Prior to the separation, NiSource plans to reduce its long-term debt with the proceeds from a one-time cash distribution from CPG. CPG plans to fund this payment to NiSource by issuing its own long-term debt. Both NiSource and CPG are anticipated to have capital structures, balance sheets and financial policies consistent with investment-grade credit metrics.
I have not seen that info anywhere. What products are they having trouble with and what is the source of the info? MMM has 5 divisions, Industrial, health Care, Consumer, Safety & Graphics and Electronics and Energy. Plus they manufacture all over the world and some geographic areas are soft, particularly South America and Europe. Each division does their own manufacturing and plants are scattered all over the world.
Based on what. For most of the quarter the Brent / WTI spread has been closing and is now only $4.50. Refining earnings are still the lions share of earnings and are extremely unpredictable. The average analyst's estimate is also pretty high and PSX missed by 19 cents in the 2nd quarter.
Paid pumpers. Wake up and smell the roses. This stock is being taken over and is locked in to .117 x the price of WLL plus or minus a few pennies.
Please if you are going to post do not make up numbers. According to the Bureau of Labor Statistics, Wisconsin gained 5200 jobs in August. In addition the unemployment rate went down to 5.6% a reduction of 2% form 5.8%. The labor force is also expanding. Go to the government site and read the numbers. This site is supposed to be a resource with info about WEC and not political BS.
Actually in some cases fracking helps the water. Overthe last 30 - 40 million years or from the time that the huge oil and gas deposits were formed from the bones of primarily marine animals, 90% of all the oil and gas that was ever there worked its way to the service and evaporated into the atmosphere. That process is still going on and it Pennsylvania there is natural gas in the water. Drilling lateral wells and fracking sucks the gas up the well and keeps it from going into the water supply. Before wells are drilled the water is sampled so that when residents with #$%$ water sue they can compare it to pre drill results.
So today the Market is getting roughed up pretty good. Based on your analogy we should blame CELG because it is down over $2 and therefore it is pulling the market down with it. Bottom line is do not be a cheer leader, stocks have some correlation to the market. So stocks go up and down over the long term based on earnings and cash flow, but can be volitile in the short run based on overall market conditions.
The HealthCare segment at Bayer (BAYRY) announced that its blockbuster eye treatment, Eylea, was approved for yet another indication in Japan. The drug was approved by the Ministry of Health, Labour and Welfare (:MHLW) in Japan for the treatment of myopic choroidal neovascularization (myopic CNV).
Eylea’s approval in the myopic CNV indication was based on encouraging results from the phase III MYRROR study. The drug is already approved in Japan for the treatment of patients suffering from neovascular age-related macular degeneration (wet AMD) and the treatment of macular edema secondary to central retinal vein occlusion (:CRVO).
Earlier in the month, Bayer also submitted the drug in Japan for patients suffering from macular edema secondary to branch retinal vein occlusion (BRVO) (read more: Bayer/Regeneron Looking for Eylea Label Expansion in Japan).
Bayer has a collaboration agreement with Regeneron Pharmaceuticals Inc. (REGN) for the global development of Eylea. Per the terms of the agreement, Regeneron owns the entire U.S. rights pertaining to the eye drug. Bayer is however responsible for marketing Eylea in ex-U.S. markets. The profit earned from the sales of Eylea in those markets is shared equally by the companies. However, in Japan, Regeneron will receive royalties on Eylea’s net sales.
Eylea has been putting up an impressive performance since its launch. The drug is approved in several countries including the U.S. for the wet AMD and CRVO indications. Bayer recorded Eylea sales of #$%$194 million in the second quarter of 2014. We expect the product to continue performing well.
Market spiking this PM and dragging CELG with it. We have continued to inch forward even though the market has been marking time for about a month. I think CELG has modeled their financials out to 2017. As trials start to bring positive news and we move toward the end of the year, we should start to see a new view and add another year to 2018.
Has precipitated a run into the $2.50's. Remember there are traders, shorties, etc in here so we may not see the total effect. But positive info on 3 different pharma products for 3 different medical problems is exciting.
Before starting OTEZLA, patients should inform their doctor if they have a history of depression or suicidal behavior and if these conditions or other mood changes develop or worsen while taking OTEZLA
Almost every new drug has this safety issue associated with it. However, many products have completely different chemistry so I wonder if this is just a general question that doctors ask patience now to protect the drug companies. I would think the biotech products would have less side effects. Of the 1426 patients in the study it would be interesting how many had various side effects and how many had no problems.
Whatever the case it sounds like it is pretty safe and folks with the disease need relief. Since it has been approved for a related medical issue I would think that your prognosis is correct and that we will see a real ramp in sales because doctors who treat Psoriasis are already familiar with the product.
In note published Wednesday morning, Bank of America analyst Doug Leggate added Occidental Petroleum Corporation (NYSE: OXY) to the firm's US1 List and reiterated a Buy rating.
Leggate wrote, "We suggest the combination of share repurchases, competitive debt adjusted per share growth and a prospective sector leading dividend above ~4% can drive a re-rating over the next 12m."
Leggate sees the company using proceeds from asset sales for buying back as much as 13 percent of its outstanding shares, as well as posting another year of "strong" dividend growth. Moreover, he noted this could serve as a catalyst to bring Occidental in line with other large cap dividend stocks.
Looking forward, Leggate has set a $130 price objective and is predicting an EPS from 2014-2016 of $7.27, $8.29 and $9.44, respectively.
Latest Ratings for OXY
Date Firm Action From To
Sep 2014 Barclays Downgrades Overweight Equal-weight
Aug 2014 Simmons & Co. Downgrades Overweight Neutral
Aug 2014 Morgan Stanley Upgrades Equalweight Overweight
Dallas, TX / ACCESSWIRE / September 24, 2014 / The Permian basin, now the nation's most productive, is churning out ever-increasing volumes of crude. As of September 2014, the Permian is producing 1.7 million barrels per day (bpd). That is more than double the 850,000 bpd the area saw in 2007.
Even the more well-known oil producing basins around the country pale in comparison. The Bakken in North Dakota and Montana, which has received so much media attention, produces only around 1 million bpd. And the Eagle Ford, the Permian's neighbor in South Texas, is responsible for 1.5 million bpd in production.
The Permian is king, even if the rest of the world doesn't know it. Despite the lack of media attention, the oil and gas is fully aware of the Permian's potential and they are heading there in droves.
Occidental Petroleum (OXY) just broke ground on a major satellite office it is building in Midland, TX. The location is not random. Midland sits in the heart of the Permian basin and Oxy's new office will house 600 employees. Texas Governor Rick Perry was on hand to inaugurate the occasion. "The men and women of the Midland area who will work at this facility will help Oxy continue to achieve their own great things, and in the process add their own stories to the ongoing tale of our state's economic success," Gov. Perry said at the event.
Oxy is the largest operator in the Permian and recently decided to move its headquarters from California to Houston in order to focus on Texas' abundant oil and gas reserves. The success of the company's acreage in the Permian was enough to convince the company that the Permian was the place to be.