The potential breakup of General Electric may unlock more value than previously thought, Melius Research analysts wrote in a note Friday. Past looks at the value of GE's individual businesses — also known as a "sum-of-the-parts" analysis — cast doubt on whether a fire sale of GE's assets would even fetch today's price at $13.28 per share. But Melius found that spinoffs from U.S. industrial companies return twice the value of the broader stock market, revealing a more optimistic forecast for GE. "GE's [sum-of-the-parts] as an example … likely undervalues the assets by 25 percent or more," Melius wrote. Former industrial conglomerates are shedding assets due to pressure from both shareholders and
It would take only a small market drop on Friday to trigger something big — a sell signal from the famous Dow Theory. The first is that the Dow Theory has been beating the market for an awfully long time. The second reason to be on your guard for the possibility of a Dow Theory sell signal: The timing system is widely followed, so a sell signal could generate an avalanche of selling.
Billionaire markets guru Ken Fisher, Chairman of Fisher Investments, reacts to Thursday's 724 point plunge in the Dow Jones Industrial average The stock selloff was sparked by worried over a trade war with China. President Trump announced some $60 billion worth of fresh tariffs on China Thursday. This comes on top of the steel and aluminum tariffs announced earlier this month. "The day was like a perfect storm, sometimes you get a tornado, sometimes you get a snow storm, sometimes you get both. Sometimes, you get both and an earthquake all at the same time" said Ken Fischer. "And today, you got that, where the magnitude of the damage was confused with the size of what would have tariff's imposed
Jim Cramer reveals which stocks you should be eyeing on a down day.
A Department of Justice witness from cable provider Cox Communications Inc. took shots on Thursday at AT&T Inc.'s (T) merger with Time Warner Inc. (TWX) and a "bullet-proof" arbitration clause the merger partners have proposed. Cox Vice President of Content Acquisition Suzanne Fenwick was the first of several Time Warner customers and DirecTV competitors to testify in U.S. District Court in Washington about the bargaining leverage the AT&T would gain by owning a premier film and TV producer alongside the largest U.S. pay-TV company. AT&T's DirecTV and DirecTV Now are "our toughest competition" Fenwick said, pointing out DirecTV's media platforms, aggressive marketing and its market share. Meanwhile,
When it comes to saving for the future, Americans aren't doing great. Those between the ages of 55 and 64 who have retirement savings have a median of $120,000 socked away, Bankrate reports in a new survey, citing data from the Federal Reserve. That's only 12 percent of the $1 million many experts recommend, and it's worth noting that even $1 million doesn't stretch as far as it used to. So how much should Americans be earmarking for retirement in order to be sufficiently funded in their golden years? Financial services company Fidelity recommends putting away 15 percent of your income per year starting at age 25 and investing more than 50 percent of your savings over your lifetime. "The good
Bank of America Corp (NYSE:BAC) is at the mercy of the markets right now. BAC stock is down roughly 8% from its March 12 highs, largely due to political uncertainty. Bank of America is scheduled to release its report ahead of the open on April 16.
(Note: The author of this fundamental analysis is a financial writer and portfolio manager.) The chip sector has been among the hottest groups in the stock market so far in 2018, with the iShares PHLX Semiconductor ETF (SOXX), a proxy for the industry, up by nearly 10 percent on the year. But the group has fallen on hard times recently, with the ETF down about 5 percent since March 12. But stocks such as Intel Corp. (INTC) and Applied Materials Inc. (AMAT) could be set to decline by a total of 11 percent or more from their intraday highs last week. Both stocks have had big runs along with the sector, with Applied Materials rising by nearly 17 percent, and Intel increasing by almost 11 percent
Dell, the largest shareholder in Pivotal, is set to retain a controlling stake after the initial public offering. Pivotal began life as a small software consultancy that worked with companies like Google and Twitter in their earliest days. Pivotal, the $2.8 billion software company that began as a spinoff of EMC and VMware, on Friday filed to go public, adding to a growing list of tech companies seeking to make a Wall Street debut this year.
Here’s what Tesla Inc. shareholders just bought for $2.6 billion: a stronger guarantee that Elon Musk will stick around for at least the next decade. Investors on Wednesday approved what may be the largest compensation deal in history for its chief executive officer, pegged on ambitions to turn Tesla into one of the world’s largest companies as it ventures beyond solar panels and electric cars. If successful, the award could end up being worth more than $50 billion — a sum so large it might just ensure that Musk’s array of other passions and esoteric side projects won’t steal too much time from his work at Tesla.
The House just passed a $1.3 trillion spending bill that protects employee tips. The U.S. House of Representatives and Senate passed a $1.3 trillion spending bill on Thursday, which includes a provision that prevents employers from taking any of their workers’ tips. It all began in December, when the U.S. Department of Labor submitted a rule that would rescind a regulation enacted during the Obama administration that required employers to distribute tips to their tipped employees.
It has been about a month since the last earnings report for Energy Transfer Partners, L.P. ETP. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Energy Transfer Partners delivered fourth-quarter 2017 earnings of 36 cents per limited partner unit, surpassing the Zacks Consensus Estimate of earnings of 28 cents.
A new report by security research firm Global Cyber Alliance finds that some of the most popular tax software providers may leave consumers at risk for identity theft.
Steve Wynn cut his stake in the $18 billion casino company he founded after settling an acrimonious, six-year court fight with his ex-wife, a move that may move the company closer to becoming an acquisition target. Wynn, 76, sold 4.1 million shares in Wynn Resorts Ltd. at $180 a share, according to a regulatory filing Thursday. The sale brings his stake down to 7.8 percent from 12 percent, lower than his ex-wife’s holding in the company.
Keep in mind that during this period Celgene stock has lost about 40% of its value. As a result, Celgene stock took a big hit. By 2022, it will lose its patent protection, resulting in competition from generic drug companies. For the most part, Celgene is in a race to overcome the likely reduction in revenues.
Donald Trump is on the warpath against China over trade: On Thursday afternoon, he announced plans to impose a range of tariffs against hundreds of lines of Chinese-made goods. The surplus flows right back into U.S. Treasuries, to fund our gigantic and ballooning federal deficits, in addition to providing tons of growth capital to stateside industries—all at bargain rates. Hence, the U.S. is extraordinarily dependent on cheap loans from China.
Back in September, I predicted that Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) would make its way above $200. While it’s taken a little longer than I thought, shares of BABA stock are now in touching distance of the $200 mark which begs the question: Can it go even higher? My colleague Tim Biggam said he believes $200 is the top for Alibaba stock, and he may well be right.
Streaming giant Netflix has created its own typeface, just like other tech companies have done. Netflix Sans is the name of the bespoke font, while Apple's is called San Francisco, introduced at its developer conference in 2015. Samsung announced SamsungOne in July 2016. Why? Because it will save Netflix marketing dollars, as using fonts often attracts large licensing fees, according to its brand design lead Noah Nathan. "With the global nature of Netflix's business, font licensing can get quite expensive," he told design website It's Nice That on Wednesday. "Developing this typeface not only created an 'ownable' and unique element for the brand's aesthetic … But saves the company millions of
The stock market's tumble Thursday is leading to panic-like selling in NYSE stocks, according the Arms Index, which is a volume-weighted measure of market breadth used to gauge the intensity of buying and selling. The Arms, which tends to rise above 1.000 when the broader market falls, has climbed to 2.086 in afternoon trade. Many technicians view rises above 2.000 as exhibiting panic-like characteristics. The number of advancing stocks outnumbered decliners 2,119 to 765, a about 2.77 to 1, while volume in declining stocks outpaced advancing volume 394.70 million shares to 68.30 million shares, or about 5.78 to 1. Meanwhile, the Dow Jones Industrial Average DJIA, -2.10% tumbled 492 points, or
U.S. equity markets sank and investors sought out havens in Treasuries and gold futures after reports that President Donald Trump is expected to announce $50 billion of tariffs against China, honing in on more than 100 types of Chinese goods. Here’s how the angst over a trade war is playing out in markets. Boeing Co., Caterpillar Inc. and 3M Co. sank at least 2.7 percent as of 11:38 a.m. in New York, the biggest drops in a Dow Jones Industrial Average that is off 450 points.
GW Pharmaceuticals: "This is cannabinoid. Cannabis is very hot as a concept to invest in. I think the stock's had too big a run. I'm not recommending it anymore. It got up, we liked it a lot lower, that's all I have to say." American Electric Power Co.: "Look, it yields under 4 [percent] now. I would buy more if it went above 4, which, of course, does mean therefore that the stock is going lower. That's where I would buy it." Applied Materials, Inc.: "We spoke to [CEO] Gary Dickerson last week. We spoke to [Lam Research CEO] Martin Anstice the week before. Business is great. Micron reported a good number, not good enough for some. But I've got to tell you, Applied Materials is in the bullpen.
Asian stock markets slumped Friday after Beijing responded to the Trump administration's tariff hikes by saying it may order higher import duties on a range of U.S. goods, ratcheting up fears of a trade war. Stocks plunged Thursday on Wall Street after U.S. President Donald Trump imposed sanctions on goods and investment from China. The Dow Jones industrial average dropped more than 700 points as investors feared that trade tensions between the world's largest economies would escalate.
The Dow Jones Industrial Average was sitting pretty at the end of January. And then it wasn't, as a correction hit. Since then it's gone up and down and up again, and the wild swings don't seem likely to end any time soon. With that in mind, we're keeping a semi-live look on the volatile markets. Here's the latest from Barron's reporters... 4:14 p.m. That got ugly fast. The S&P 500 slumped 2.1% to 2588.26, while the Dow Jones Industrial Average dropped 424.69 points, or 1.8%, to 23,533.20, a 2018 low. The Nasdaq Composite tumbled 2.4% 6992.67. We'll leave you with this thought: "They say bull markets don’t die of old age, but age does take its toll," writes Wellington Shields' Frank Gretz. "This
Shares of General Electric GE slumped more than 1.5% in morning trading Thursday, adding to the conglomerate’s recent losses amid a tariff scare that has seen investors ditch major U.S. industrials and importers. Today, you can download 7 Best Stocks for the Next 30 Days.
Kroger Shares (KR) are surging here, up over +4.2%. The grocer is reportedly in talks with Target on a merger deal, according to Fast Company. This is presumably a move to counter Walmart’s huge presence in the grocery space and Amazon’s advance with Whole Foods.