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Edwards Lifesciences on Tuesday reported adjusted earnings of 54 cents per share on $1.22 billion in sales for the first quarter ended March 31. In response, EW stock jumped.
Edwards Lifesciences on Tuesday reported adjusted earnings of 54 cents per share on $1.22 billion in sales for the first quarter ended March 31. In response, EW stock jumped.
(Bloomberg) -- At their highs, five electric-vehicle startups that went public through mergers with special purpose acquisition companies were worth $60 billion. The corrections that followed have been brutal.Three of the companies plumbed new lows this week as short-seller attacks, management turmoil and execution issues lead investors to reconsider their prospects. They’ve lost more than $40 billion of market capitalization combined from their respective peaks.The sliding valuations of Nikola Corp., Fisker Inc., Lordstown Motors Corp., Canoo Inc. and Arrival Ltd. underscore the risks surrounding the blank-check boom. Unlike in a traditional initial public offering, going public via SPAC allows companies to make forward projections to investors during their listings. This was key to ginning up interest in EV companies -- all five are still working on delivering their first vehicles to customers.Here’s a breakdown of what’s happened at each company:NikolaFounder Trevor Milton burst onto the scene last year boasting that he could “out-Elon” Tesla Inc.’s Elon Musk. Days after his battery-electric and hydrogen-powered truck maker debuted on the Nasdaq in June, it was worth almost $29 billion, rivaling Ford Motor Co. at the time.When Bloomberg News reported that Milton had exaggerated the capability of his first truck years before the company went public, it got the attention of Hindenburg Research. The small short-selling firm produced a lengthy report accusing the company of deceiving investors. The U.S. Securities and Exchange Commission opened an investigation, and Milton resigned soon after.Early this year, the company cut its projection for semi-truck production this year to 100 units, one-sixth of its earlier plan. The shares have recovered somewhat since dipping below $10 in April.FiskerThe second EV venture founded by longtime auto designer Henrik Fisker announced its reverse merger a month after Nikola’s listing. While the company was more than two years from starting production, its plan to market an under-$40,000 sport utility vehicle and outsource the manufacturing work to others turned heads. Its market value peaked at almost $8 billion in February.The catalysts for Fisker’s decline to below $3 billion this week have been less clear than some of its peers. The company appeared to lose out as investors grew more bullish about incumbent automakers’ EV prospects. Its shares are surging in early trading after an announcement late Thursday of plans to develop an EV with Foxconn Technology Group and build it in the U.S.Lordstown MotorsThen-Vice President Mike Pence attended Lordstown’s unveiling of its Endurance work truck in June at the factory the company took over from General Motors Co. While it was a risky move championing a company with just 70 full-time employees, the Trump administration was eager to embrace a startup trying to revive an Ohio plant that once employed 10,000 people.Less than six weeks later, Lordstown found a SPAC suitor. Boasts about non-binding orders gave way to another attack by Hindenburg Research, which leveled accusations similar to the ones aimed at Nikola -- that Lordstown had misled investors. The SEC has been looking into the claims. Lordstown is now valued at $1.2 billion, less than a quarter what it was worth in mid February.CanooThe startup founded by a pair of former BMW AG executives unveiled a seven-seat prototype in late 2019, struck a deal early last year to help Hyundai Motor Group develop EVs, then another agreement in August to go public. In January, the Verge reported it had met with Apple Inc. about its car ambitions.That momentum is now long gone. The company announced a hard pivot in its business plans in March, deciding to de-emphasize engineering services for other companies and the subscription business model that was part of its original pitch to investors. It has replaced top executives, including its chief financial officer, and said it hasn’t addressed material weaknesses in its financial controls identified more than a year ago. Last month, one of its co-founders resigned the CEO position.ArrivalThe company pledging to build electric vans and buses as well as so-called microfactories to manufacture them had assembled big-name backers before its SPAC deal, including BlackRock Inc., Hyundai and United Parcel Service Inc.Last week, the London-based company founded by Denis Sverdlov, a former Russian deputy minister, said it will partner with Uber Technologies Inc. to develop an EV that’s purpose-built for ride-hailing. While Arrival shares haven’t sustained the immediate gain following that announcement, the company’s valuation is the highest among the five at $10.5 billion.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The group of rich government creditors known as the Paris Club is willing to delay a $2.4 billion debt payment from Argentina due this month if the nation meets certain conditions, potentially averting a damaging default, according to three people with direct knowledge of negotiations.The club will spare Argentina from default if it misses the May 31 payment in the hope that the country can rework a $45 billion credit with the International Monetary Fund, said one of the people, who asked not to be named because the talks are private. An agreement with the IMF may not come until after Argentina’s midterm elections later this year, the person said, declining to specify the conditions that the group is demanding.The Paris Club secretariat declined to comment, citing its policy not to publicly discuss ongoing negotiations. Argentina’s economy ministry press office didn’t reply to a request of comment.Argentina’s President Alberto Fernandez extended his European tour to meet IMF Managing Director Kristalina Georgieva in Rome on Friday in a bid to drum up support for a delay and renegotiations with the IMF. Argentina has formally asked the Paris Club for more time to make the payment and is expecting to receive a response by the end of the month.Georgieva said in a statement that the face-to-face gathering was “very positive” and that she will consult IMF members on the country’s request for a reform to the organization’s surcharge policy.“The goal is to reach an agreement as soon as possible, though we can’t be thinking of an accord that demands greater efforts from the Argentine people,” Fernandez said after the meeting, which lasted over an hour at the Sofitel hotel in Rome.Argentina dollar-denominated bonds due 2030 edged up 0.4 cents to 35.2 cents on the dollar and bonds due 2038 rose 0.6 cents to 37.3 cents on the dollar, the most in two months. The Argentine peso, which is managed by authorities through capital controls, lost almost 11% this year in the second biggest depreciation among emerging market currencies.Read More: Argentina Urges IMF to Suspend Surcharges on $45 Billion LoanThe deadline comes at a difficult time for the administration in Buenos Aires, with the country in its third year of recession, inflation approaching 50% and unemployment over 10%. While analysts’ estimates of its cash reserves vary, some calculations have put them near zero since September of 2020, limiting Argentina’s capacity to meet its international obligations.International PariahThe temporary Paris Club waiver aims to ease the economic ravages wrought by the pandemic, but it needs to be tied to conditions so it doesn’t turn into a habit, said one of the sources. Argentina has defaulted on its overseas debt nine times in its history.“Nobody wants Argentina to become an international pariah again,” said Rodrigo Olivares-Caminal, a professor in banking and finance law at Queen Mary University of London. “A default would be negative for Argentina and its creditors. But I’m concerned about Argentina’s endemic balance of payment problem.”In May 2014, Argentina reached a deal with the Paris Club to repay a $9.7 billion debt after 13 years in default. The debt was supposed to be repaid over a five-year period, but the country’s latest financial troubles delayed the final payments due this month. Creditors include the U.K., Italy, Spain and Canada.A Paris Club rule known as a “conditionality principle” states that the group only negotiates debt restructuring with debtors that have “a demonstrated track record of implementing reforms under an IMF program,” according to the group’s website. Argentina ceased following guidelines from a program with the IMF after a change of administration in late 2019, and talks for a new plan have stalled.Read More: Paris Club Seizes Pandemic Opportunity to Reclaim Lost Influence(Adds comments from the IMF’s Georgieva in fifth paragraph, updates market reaction in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- With the global inflation debate intensifying, equity investors are fine tuning their portfolios to guard against the impact of price pressures.A preference for companies with the greatest pricing power is one approach adopted by investors from JPMorgan Asset Management to Pictet Wealth Management. While cyclical stocks remain in favor, fund managers are becoming more selective, as pockets of the economically-sensitive asset class may have run too far, too fast.“You hide in pricing power companies -- those companies that will be able to pass higher raw material costs and wages to the end customer,” said Cesar Perez Ruiz, chief investment officer at Pictet Wealth Management in Geneva. “Luxury, concessions companies linked to inflation are some of the sectors that will benefit, but even some cyclical or commodity companies have now more pricing power than several years ago too.”A jump in U.S. consumer prices in April by the most in a decade has intensified an already-heated debate about how long inflationary pressures can last. Higher-than-expected factory prices in China last month and the surge in commodity prices, have added to the concerns.The worries have begun to weigh on stocks. MSCI Inc.’s global equity benchmark slipped 1.6% this week, its biggest drop since February. Technology shares bore the brunt of the weakness as investors bet the return of inflation will bring with it higher interest rates that could hurt stocks with elevated valuations.Wall Street Can’t Agree If Inflation Is Good or Bad for StocksPrice SettersStocks like U.S. railroad companies and paint manufacturers have historically been good at passing on price pressures, though usually with a time lag, according to Richard Saldanha, a portfolio manager at Aviva Investors.Yet there are differing views about how much this applies right now.“Consensus believes that cyclical areas such as banks and industrials are the place to hide in an inflationary environment,” said Caroline Keen, a portfolio manager of JPMorgan Global Growth Fund. “We would counter that banks are generally not price setters and many industrial companies such as autos are struggling with cost increases, with an inability to pass these on to consumers.”Getting PriceyCyclical names are also getting more expensive. Banks now trade around 1.1 times their book value, above the sector’s 10-year average, according to data compiled by Bloomberg. The equivalent for materials stocks is even more extreme after recent surges in commodities like copper and iron ore.That has made UBS Asset Management portfolio manager Max Anderl “slightly wary” of classic inflation hedges like financials or miners after a strong rally this year. “We prefer to look at selected stocks in the IT and media sectors that continue to show exceptionally strong fundamentals but have corrected sharply in this factor rotation,” he said.Ricardo Gil, head of asset allocation at Trea Asset Management in Madrid, has chosen to exit industrial shares in favor of oil stocks and some banks.Idiosyncratic IdeasAnother approach is to sidestep the debate altogether and focus on single stock ideas or non-inflation related investment themes.With reflation bets triggering a sector rotation, equity correlations are falling, which is good news for fund managers looking to beat indexes through stock picking. If most equities are moving in different directions, it’s easier to choose one that stands out from the crowd.The S&P 500 Index’s three-month realized correlation -- a gauge of how closely the top stocks in the U.S. benchmark move relative to each other -- remains well below the average of the last 10 years.“Our way to cope is being overweight in equity alternatives such as Merger Arbitrage and CTAs and focus on idiosyncratic ideas rather than broader sectors,” said Bantleon AG portfolio manager Oliver Scharping.Transitory ShockStill, not everyone believes the world is set for a new era of higher prices and JPMorgan’s Keen isn’t making significant changes to her portfolio despite the recent inflation concerns.The portfolio manager sees inflation as transitory due to year-over-year base effects and temporary supply chain bottlenecks and is conscious of structural deflationary forces that remain in place such as technology, high debt levels and poor demographics.“Loan growth remains muted and fiscal stimulus comes with offsetting tax increases,” Keen said. “So far we have seen no evidence to suggest that we are entering a new inflationary regime.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Ant Group Co.’s profit rose to $3.4 billion in the December quarter after Chinese regulators thwarted its record initial public offering and told it to scale back its sprawling business.Billionaire Jack Ma’s fintech giant contributed nearly 7.2 billion yuan to Alibaba Group Holding Ltd.’s earnings, a company filing showed Thursday. Based on Alibaba’s one-third stake in Ant, that translates to 21.8 billion yuan ($3.4 billion) in profit, up 50% from 14.5 billion yuan in the previous three months. Ant’s earnings lag one quarter behind Alibaba’s. Ant declined to comment.The tally underscores the earnings powers Ant boasted before authorities demanded China’s largest fintech company fold its financial business into a holding company, curtailing its growth prospects. Regulators have issued a battery of proposals that threaten to curb Ant’s dominance in online payments and scale back its expansion into consumer lending and wealth management.While Chairman Eric Jing has promised staff that the company will eventually go public, it’s likely to be worth much less than before the crackdown that saw the IPO halted in November. Fidelity Investments halved its valuation estimate for Ant to about $144 billion in February, compared with $295 billion assigned in August.Ant isn’t alone in facing the clampdown. The government imposed wide-ranging restrictions on the financial divisions of 13 companies including Tencent Holdings Ltd. and ByteDance Ltd. Units of JD.com Inc., Meituan and Didi Chuxing were also among companies summoned to a meeting where regulators handed out stricter compliance requirements in April.The company’s affiliate Alibaba reported its first loss in nine years, vowing to hike spending for expansion next year in technology and community commerce.(Updates with Alibaba profit details in last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The IRS detailed on how it will handle a mixup involving a tax break for jobless benefits that became law a month after many already filed returns.
Two of the world's most prominent billionaires Tesla Inc.'s CEO Elon Musk and Jack Dorsey are facing off over the merits of bitcoin, with the future of the world's No. 1 crypto likely hanging in the balance.
Institutional investors do not take kindly to inflation and they sold. 1. If indexes fall below their moving averages, take action: Traders and investors alike should watch moving averages, especially the 50-, 100-, and 200-day. When the indexes were sliding a few days ago, the S&P 500 (SPX) for example, did not break its 50-day moving average at 4050.
Last week, we witnessed a classic “buy the rumor, sell the news” event with the cryptocurrency Dogecoin (CRYPTO:DOGE). Many Dogecoin enthusiasts were hoping that Tesla (NASDAQ: TSLA) CEO Elon Musk’s stint hosting the television show “Saturday Night Live” would lead to higher prices. After all, Musk has been known to pump the price of this cryptocurrency on Twitter and has been one of its biggest supporters. With so many Dogecoin holders anxious to see what the Dogefather had to say Saturday, the price of cryptocurrency rallied hard into the event to hit a record high of $0.74. Unfortunately, Doge investors learned that sometimes these types of events simply cannot live up to the hype. The price of Doge dropped more than 30% following the premiere of the show after Musk failed to deliver the praise for the cryptocurrency investors were hoping for. Traders can learn a lot from this story, particularly since this “buy the rumor, sell the news” scenario repeats itself time and time again in financial markets. It highlights just how difficult it can be to trade based on the news and should be viewed as a cautionary tale. With that said, perhaps the most important lesson here is that instead of gambling on Dogecoin, why not learn a trading strategy that can deliver real results? For example, Mindful Trader has created a data-driven swing-trading strategy that can potentially help you grow your account. Because he has analyzed and dissected historical stock market price data to test his trading strategy, you won’t have to worry about trying to guess right on binary events like the one mentioned above. Instead, you can use a statistical approach with proven results to take your trading to the next level. Signing up for the Mindful Trader service gives you access to tutorials and all the trading rules he uses for successfully generating returns with stocks and options trading. He also provides data-driven stock picks that he trades himself, which allows you to learn while following his suggestions. Whether you are a beginner trader or a seasoned veteran, Mindful Trader has something for everyone. Since Mindful Trader uses a swing-trading strategy that relies on price movement, not hope, you will always be confident in making a trade. That means you won’t have to trade the news and rely on hype to potentially generate returns like those unfortunate Dogecoin investors mentioned above. Check out this link to learn more about Mindful Trader’s trading strategy and why it’s such a smart alternative to gambling with Dogecoin. See more from BenzingaClick here for options trades from BenzingaThese OTC Securities Had the Most Trading Activity in April3 Advantages to Binary Options Trading with Nadex© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Here's how to tell if dogecoin's rebound is more bark than bite, according to technical analysts following the popular crypto.
The agency is plagued with setbacks that are causing a major backlog of returns.
(Bloomberg) -- JD Logistics Inc. has attracted SoftBank Vision Fund and Temasek Holdings Pte as cornerstone investors in its Hong Kong initial public offering, people with knowledge of the matter said, as the warehousing and shipping firm is set to kick off one of the year’s biggest share sales in the city. Blackstone Group Inc. and Tiger Global also committed to buy stock in the offering, the people said, asking not to be identified because the information is private.SoftBank Vision Fund is set to invest $600 million in the offering, accounting for 40% of the $1.5 billion worth of shares the company has set aside for about seven cornerstone investors, the people said. That would make the prolific investor one of the largest shareholders in the company after its parent, JD.com Inc.Temasek is signing up to buy $220 million worth of stock, the people said. China Chengtong Holdings Group Ltd., Matthews Asia and Oaktree Capital have also agreed to purchase shares, they said.JD Logistics is targeting to raise as much as $3.5 billion in the first-time share sale and is set to start taking orders as soon as next week, the people said. It would be the second-largest IPO in the city this year, after Kuaishou Technology’s $6.2 billion listing in February.Bank of America Corp., Goldman Sachs Group Inc. and Haitong International Securities Group Ltd. are the joint sponsors of the offering, according to its preliminary prospectus.Cornerstone buyers typically agree to hold stock for a set period of time in exchange for early, guaranteed allocation. JD Logistics is still finalizing terms of the offering, and details could change, the people said.An external representative for JD Logistics and representatives for Blackstone, SoftBank Vision Fund and Temasek declined to comment. Representatives for China Chengtong, Matthews and Oaktree did not immediately respond to requests for comment. A representative for Tiger Global didn’t immediately respond to a request for comment outside of U.S. business hours.(Updates with SoftBank Vision Fund response in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The Tesla CEO sent the price of Bitcoin and other cryptocurrencies plummeting. But he may be aiming to turn crypto-mining green in ways that benefit Tesla.
Dogecoin will likely transition from a proof-of-work protocol to proof-of-stake, speculated Alex Mashinsky, the chief executive and founder of The Celsius Network on Friday during a webcast hosted by his lending platform on YouTube.
Anyone with a stock account can now make a savvy, albeit risky, bet on GBTC pricing disparities that were previously exclusive to big players.
Shares of Plug Power Inc. surged Friday, after they hydrogen and fuel cell systems company completed its restatement, removing a "shroud of uncertainty" that has been weighing heavily on the stock the past couple months.
(Bloomberg) -- Stock sales are reaping a windfall for the world’s richest shareholders.Corporate insiders including Amazon.com’s Jeff Bezos and Google co-founder Sergey Brin have ramped up stock sales recently, cashing in on a 14-month long bull market that’s helped boost fortunes to the tune of trillions.U.S. public company insiders offloaded shares worth $24.4 billion this year through the first week of May, with about half sold through trading plans, according to data compiled by Bloomberg. That’s almost as much as the $30 billion total they disposed of in the second half of 2020.Large shareholders frequently sell stock in planned intervals, often through pre-arranged trading programs. Yet the prolonged rally in equities markets has made the value of these disposals, whether planned or opportunistic, strikingly high.There are multiple reasons an investor of any size might be motivated to sell. After the pandemic-defying rally, valuations are increasingly under pressure from rising inflation. Investors are wary the post-Covid recovery could prompt tightening measures from the Federal Reserve. And President Joe Biden’s proposed tax hikes -- including a near doubling of the capital gains rate -- have created uncertainty.Bezos, EllisonWhatever the reason, the sales are flooding the market with yet more liquidity, the consequences of which will ripple through philanthropy, the art market, real estate and other niches.Bezos has sold $6.7 billion worth of Amazon shares this year. While a relative pittance for the world’s richest person, it’s more than two-thirds the value of shares he sold in 2020. Larry Ellison unloaded 7 million Oracle shares in the past week for total proceeds of $552.3 million. Charles Schwab has sold $192 million worth of shares of his eponymous brokerage this year.Brin, who has signaled that he intends to sell as many as 250,000 Alphabet Inc. shares, has disposed of $163 million worth of stock in recent days, his first sales in more than four years, filings show.Mark Zuckerberg and his charitable foundation, the Chan Zuckerberg Initiative, meanwhile, accelerated their sales of Facebook stock in the fall. Zuckerberg or his charity has divested shares at a near-daily clip since November, for a cumulative total exceeding $1.87 billion.The surging markets have exacerbated the concentration risk of the single-stock-dominated fortunes typical of many tech billionaires, said Thorne Perkin, president of Papamarkou Wellner Asset Management.“From a portfolio-management perspective, it makes sense to spread it around,” he said.Covid EconomyAlso among the biggest sellers are some noteworthy beneficiaries of the Covid economy. Zoom Video Communications founder Eric Yuan and used-car retailer Carvana Co.’s Ernest Garcia II have together received more than $1.75 billion from stock sales since March 2020, according to the Bloomberg Billionaires Index. George Kurtz, chief executive officer of cybersecurity firm CrowdStrike, has sold shares worth at least $250 million over that period.Zoom founder Yuan -- the poster child, in many ways, for the coronavirus economy -- has stepped up his sales this year as the firm’s share price slumped. In 2020, he typically offloaded about 140,000 shares a month through a trading plan, which generated more than $350 million over the course of the year.Since March, he’s sold almost 200,000 shares a month on average, yielding him about $185 million. He also donated more than a third of his stake in the San Jose-based company as part of “typical estate planning practices,” according to a spokesman. Some of the cash from his share sales fund donations to unspecified “humanitarian causes.”(Updates with Charles Schwab’s sales in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Lawmakers are looking for quick action to improve an existing forgiveness program.
(Bloomberg) -- Fuel that is so dirty that the global shipping industry banned its use last year is being burned at the highest level in three years in Mexican power plants.With the global shipping industry shunning sulfurous fuel oil to curb emissions, storage tanks in Mexico are overflowing with the stuff, a byproduct of its attempt to produce more gasoline domestically. The solution Mexico has chosen is to push more of it into electricity generation, replacing cleaner-burning natural gas. Consumption of the dirty fuel jumped by almost 50% in the past year to more than a 100,000 barrels a day in March, according to government data.The capital’s air quality has worsened, said Beatriz Olivera Villa, a consultant with Greenpeace in Mexico, in a phone interview from Mexico City. “It’s an unfortunate setback for the country.”Replacing natural gas, which it imports from the U.S., with fuel oil is certain to raise Mexico’s emissions. President Andres Manuel Lopez Obrador has pledged to reduce Mexico’s dependence on fuel imports but is faced with highly inefficient refineries. Historically, it’s been cheaper for Mexico to export the crude it produces to countries with more technologically complex refineries and to import refined fuels like gasoline.State oil company Petroleos Mexicanos produces copious amounts of fuel oil unintentionally because its refineries lack the technology to extract cleaner fuels from the sludge that is leftover during the initial process of turning crude into gasoline. Therefore, the more gasoline the country’s refineries produce, the more extra fuel oil they have to find a home for.“Mexico is creating a market to absorb the excess fuel oil from its refineries,” said Ixchel Castro, an analyst with Wood Mackenzie Ltd.Fuel oil is being burned at the six power plants owned by state utility Comision Federal de Electricidad, or CFE. This year, a government commission responsible for monitoring air quality in the metropolitan area of Mexico City, sounded the alarm twice amid high ozone levels. As a result, cement-makers as well as Pemex’s refinery in Tula and its associated power plant, had to reduce activity.Switching a power plant that uses natural gas to fire a turbine to fuel oil generates 16% more carbon dioxide, according to BloombergNEF calculations.The air-quality monitoring commission estimates the alarm for high ozone levels may sound 7-20 times this year, forcing industries to curtail activity to curb emissions. That compares with one time last year and six times in 2019. Victor Hugo Paramo Figueroa, head of the commission, said the increased use of fuel oil alone doesn’t necessarily translate into more emissions.“We have other culprits, including cars and even an eruption of the Popocatépetl volcano,” he said. “And a rainier season can disperse particles more efficiently, keeping the air quality within acceptable levels.”(Updates with ozone levels and government’s comment in last four paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Despite differing outcomes, shares of GameStop and AMC Entertainment were moving in almost perfect sync on Friday as the two most popular meme stocks experienced very similar choppy trading one day after both experienced major surges.
Recent market volatility is enough to make your head spin, and can cause plenty of confusion for retail investors seeking a solid market strategy. It’s tempting to look to the experts, but that raises another question: which experts are the best to follow? There are plenty to choose from. Wall Street’s corps of professional stock analysts provide frequent and relevant commentary on hundreds of publicly traded stocks, but some investors want to consult opinions that originate a bit closer to the stock in question. For them, following the insiders – corporate officers whose jobs put them in a position to know the inner workings of their companies – can provide valuable stock hints. To make that search easier, the TipRanks Insiders’ Hot Stocks tool gets the footwork started – identifying stocks that have seen informative moves by insiders, highlighting several common strategies used by the insiders, and collecting the data all in one place. Fresh from that database, here are the details on three Strong Buy stocks showing ‘informative buys’ in recent days. Energy Transfer (ET) We'll start with a midstream company in the energy sector. Midstreamers are the companies that move energy sources – crude oil and natural gas, their derivatives, and other fuels – from the wellheads to the refiners and transfer points. It’s a necessary network in the hydrocarbon industry, and Energy Transfer exists right in the middle of it. The company’s transport network spreads across 38 states, connecting the Appalachia, North Dakota, and Texas-Oklahoma-Louisiana regions. Energy Transfer controls pipelines, terminals, and tank farms for oil and gas products. In Q1, ET reported net income of $3.29 billion, up by more than $4 billion from the net loss in the year-ago quarter. Per share, earnings came to $1.21. The company’s cash flow also grew substantially. ET reported $3.91 billion in distributable cash flow, compared to the $1.42 billion in 1Q20, for a gain of 175%. Energy Transfer used that cash flow to fund its dividend, at 15.25 cents per common share and payable on May 19. At that rate, the payment annualizes to 61 cents per share, and gives a strong yield of 6.11%. On the insider front, Ray Washburne, of Energy Transfer’s Board of Directors, made several purchases of ET stock recently. Two of those purchases, totaling 200,000 shares and purchased for approximately $1.9 million. His total holding in the stock now exceeds $4.2 million. Covering this stock for Evercore ISI, analyst Todd Firestone takes note of the sound quarterly report, and believes the company is moving in the right direction. “ET ticks every major investment theme, massive, diversified portfolio, clear path to deleveraging, focus on returns vs. growth, protection from commodity and volume swings, and an unchallenging valuation, trading well behind peers. There are two key takeaways on which we think investors ultimately focus on from [the earnings] results, i) guidance improved independently from the storm with systems operating at or above pre-COVID levels, and ii) the extra earnings are already in the bank and were used to pay down $3.7 Bn in debt,” Firestone wrote. To this end, Firestone gives ET shares an Outperform (i.e. Buy) rating, along with a $14 price target that implies a 38% upside potential for the year ahead. (To watch Firestone’s track record, click here) It’s clear from the unanimous Strong Buy consensus rating that Wall Street agrees with Firestone’s take on this stock. ET has 9 positive reviews on file. The stock is selling for $10.17, and its $12.67 average price target suggests ~25% one-year upside. (See ET stock analysis on TipRanks) New Fortress Energy (NFE) Let’s stick with the energy industry, but shift gears a bit and take a look at the natural gas segment. New Fortress Energy provides funding, construction, and operational maintenance for fully integrated natural gas energy projects in underdeveloped areas around the world. The company defines its mission as bringing clean and affordable energy onto the global marketplace. New Fortress has operations in Jamaica and Puerto Rico, Mexico and Brazil, and Western Ireland. In its report on the first quarter of this year, Fortress showed $145.7 million in total revenues, up 95% year-over-year, although flat from the previous quarter. In other news, the company’s gas projects in Mexico, Nicaragua, and Brazil are all proceeding on schedule. Two previously announced acquisition deals, of Hygo Energy Transition and Golar LNG Partners, were closed during the quarter, at a combined value of $5.1 billion. The company also shored up its liquidity position during the quarter. It completed a private offering of senior secured notes, $1.5 billion in total, due in 2026, and closed a $200 million secured revolving credit facility. Turning to the inside trades, John Mack, COB and Board member of New Fortress, made a series of stock purchases recently, totaling 24,000 shares. At the average price paid of $39.88, these were worth more than $957,000. In a detailed note on New Fortress, Evercore analyst Sean Morgan sees the company developing a solid foundation and improved profitability. “NFE has expanded its regasification capacity at a very rapid rate and has had to acquire third-party LNG cargoes to meet demand at its facilities…. NFE is also working to develop two offshore FLNG projects... The net result of this supply chain integration is to self-provide gas at a fixed price of $3-4/mmbtu, with first gas expected in 2022," Morgan wrote. The analyst continued, "For the upcoming quarter, NFE will see the partial-quarter direct contribution of its newly acquired assets of GMLP and Hygo, as the transaction closed on April 15th. We expect the contribution of GMLP’s assets amid an improving LNG carrier spot rate market to improve the profitability of the company in 2Q21, as NFE also continues to ramp its growing regasification business (including Hygo) and FLNG export projects.” Based on the above, Morgan gives NFE shares an Outperform (i.e. Buy) rating. His price target of $64 implies a 12-month upside potential of 60%. (To watch Morgan’s track record, click here) Overall, of the 5 recent analyst reviews on file for New Fortress, 4 are to Buy and 1 is to Hold, giving the stock its Strong Buy consensus rating. The shares are trading for $40.02 and have an average price target of $53.20, giving them an upside potential of 33% for the coming year. (See NFE stock analysis on TipRanks) Green Brick Partners (GRBK) Last but not least is Green Brick, a Texas-based company in the land-development and home acquisition sector. This is a growth segment of the economy; real estate and home prices have been rising lately. Green Brick invests in land, which it then provides as plots for development projects. The company also provides financing for construction costs. Green Brick’s recent Q1 revenues came in at $234.5 million, up 9.9% year-over-year. On the negative side of the ledger, revenues have been slipping since 3Q20 – but the company typically shows short cycles of rising and falling quarterly revenues, and the overall trend in the past two years has been upwards. EPS has shown a similar patter, and the Q1 print, at 51 cents per share, was up 64% from the year-ago quarter. The strength of the residential real estate sector can be seen by the share performance. GRBK shares have appreciated an impressive 155% in the past 12 months. Turning to the insiders, we find that Harry Brandler, of the company Board, this week purchased 25,000 shares of stock, in a series of transactions totaling over $552,000. It was his second large stock buy this year; the earlier purchase, in March, was 20,000 shares for $428,000. Brandler’s stake in Green Brick now reaches $1.9 million. Analyst Aaron Hecht, in his coverage of Green Brick for JMP Securities, sees the company on firm footing, despite the sequential declines. “The delivery shortfall was not all that unexpected given the company’s massive increase in backlog. Management continues to leverage its exposure to the Dallas-Fort Worth and Atlanta markets and is capitalizing on Millennial home purchases and pandemic-related relocations from urban environments. We believe the current housing cycle has legs through 2022," Hecht noted. The analyst added, “Net new orders totaled 1,082 homes for 1Q21, up 71% yr/yr and a record number of homes for the company…. Sales in the entry-level and first move-up categories, often an indicator of Millennial, homebuyers totaled 36%, which is double the percentage just two years ago.” All in all, Hecht rates GRBK shares as Outperform (i.e. Buy), with a $30 price target to suggest room for a 30% one-year upside. (To watch Hecht’s track record, click here) The recent reviews on Green Brick break down 3 to 1 in favor of Buys versus Holds, and support the Strong Buy analyst consensus rating. The shares are currently priced at $23 and their $32 average price target implies ~40% upside from that level. (See GRBK stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. 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