The Crypto Daily – Movers and Shakers

Bloomberg
Tesla Shares Stage Tepid Recovery on ‘Buy the Dip’ Bounce
(Bloomberg) -- Tesla Inc. gained on Wednesday, indicating that investors are buying the dip following a four-day drop that erased the electric-car maker’s year-to-date gains.The day-trader favorite rose as much as 3.7% to $724.86 in New York, rebounding from the 12% slide the previous four sessions. On Tuesday, the stock had slumped as much as 13%, briefly trading below the level when it entered the S&P 500 Index in December, but closed just 2.2% down.The Nasdaq 100 saw a similar rebound on Tuesday as “buy the dip” began trending on Twitter, closing just 0.2% lower after a 3.5% slump in the morning.Other electric-vehicle makers also climbed on Wednesday, with Nikola Corp. gaining as much as 4%, and Lordstown Motors Corp. advancing 4.8%.READ: Dip Buyers Nearly Wipe Out Tech’s Biggest Loss Since Covid PanicCathie Wood, head of Ark Investment Management, was among investors who bought the weakness in Tesla shares, she said in an interview on Bloomberg Radio. A subsequent email from Ark showed that three of the firm’s exchange-traded funds purchased a total 240,548 shares of the automaker on Tuesday.Tesla shares are little changed in 2021, after a 743% rally in 2020.Story Link: Tesla Shares Rally in Premarket Trading on ‘Buy the Dip’ Bounce(Updates stock moves in second, third and fifth paragraphs. A previous version corrected Tesla’s 2020 share gain.)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.
19h ago
Bloomberg
Indebted Turkish Group Looks to Cash In With Plan for Unit’s IPO
(Bloomberg) -- Aydem Holding AS, which underwent Turkey’s second-largest debt restructuring, applied for an initial public offering of its renewable-electricity producer.Garanti Yatirim, Is Yatirim, Turkiye Kalkinma ve Yatirim Bankasi AS and Yapi Kredi Yatirim will lead the offering of shares in Aydem Yenilenebilir Enerji AS, according to an emailed statement on Tuesday. Halk Yatirim, Vakif Yatirim and Ziraat Yatirim will act as co-leaders. There is no certainty that the IPO will take place, the company said.Aydem Holding joins a flurry of small and medium-sized Turkish companies rushing to list on Borsa Istanbul and cash in on a flood of local retail investors. The re-branded company formerly known as Bereket Enerji restructured $5 billion of loans in 2019.If the IPO materializes, it could be the biggest share sale in Turkey since discount grocer Sok Marketler Ticaret AS raised $595 million in mid-2018. Aydem Holding was expecting to raise around $300 million in an offering that could value the unit at as much as $1.5 billion, people familiar with the plans said late last year.Aydem Holding’s statement didn’t specify when or where the listing will take place. It’s already signed up Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc. as global lead bookrunners, people familiar with the plans said in late 2019.The company has 25 power plants with a total capacity of 1,020 megawatts, Idris Kupeli, chief executive of Aydem, said in the statement. “In 2021, we are increasing hybrid energy production plants in a bid to diversify our portfolio,” he said.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.
2d ago
FX Empire
NZD/USD Forex Technical Analysis – .7395 Next Upside Target; Close Below .7344 Forms Reversal Top
The direction of the NZD/USD on Wednesday is being controlled by .7344.
1d ago
Bloomberg
Powell Signals Fed to Keep Buying Bonds Even as Outlook Improves
(Bloomberg) -- Federal Reserve Chairman Jerome Powell signaled that the central bank was nowhere close to pulling back on its support for the pandemic-damaged U.S. economy even as he voiced expectations for a return to more normal, improved activity later this year.“The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved,” he told the Senate Banking Committee Tuesday.He also played down concerns of an inflationary outbreak from another big fiscal stimulus package or from an unleashing of pent-up demand as a growing number of Americans are vaccinated against the virus. And he called the recent run-up in bond yields that has unsettled the stock market “a statement of confidence” in a robust economic outlook.The Fed is currently buying $120 billion of assets per month -- $80 billion of Treasury securities and $40 billion of mortgage-backed debt -- and has pledged to keep up that pace “until substantial further progress” has been made toward its goals of maximum employment and 2% inflation.The chairman “gave absolutely no indication that the Fed is thinking about changing its very dovish policy stance,” Cornerstone Macro analysts Roberto Perli and Benson Durham wrote in a note to clients.Powell’s testimony occurred against the backdrop of growing optimism about the economy as vaccines against the coronavirus are more widely disseminated and expectations of further fiscal stimulus from President Joe Biden and Congress mount.Bond yields have risen on the economy’s better prospects and in anticipation of faster inflation. Some traders have also brought forward their expectations for the Fed’s first interest-rate increase since it slashed rates effectively to zero last year.Powell said it was important to determine what was behind the higher bond yields, namely expectations of a return to a more normal economy.“In a way, it’s a statement on confidence on the part of markets that we will have a robust and ultimately complete recovery,” he said.Market price action was volatile in the aftermath of Powell’s opening statement text release, with 10-year yields initially rising a couple of basis points to 1.3875% session highs, before the move quickly faded and yields dropped back lower by about the same amount.Interest-rate swap markets are pricing the first 25 basis point of Fed hikes around mid-2023, versus the early-2024 time frame priced in at the beginning of this month.Read More: Traders See Earlier Fed Hikes, Even as Goldman Cautions on PaceTechnology company shares led a decline in U.S. stock prices on Tuesday on concern that valuations had gotten out of hand amid higher bond yields and bets on faster inflation. Even with recent weakness, though, the S&P 500 index is still up more than 70% from lows struck last March.Powell said he didn’t have an opinion on whether that constituted an equity market bubble, noting that there were opinions expressed on both sides of that proposition. “No one can really identify” a bubble, he said.Powell allowed that loose monetary policy has played a role in pushing up asset prices. But he said that other forces were also at play, including expectations of faster economic growth.“While we should not underestimate the challenges we currently face, developments point to an improved outlook for later this year,” Powell said. “In particular, ongoing progress in vaccinations should help speed the return to normal activities.”In response to a question, the Fed chair said growth could come in this year at 6%. The economy contracted by 2.5% last year.The economy started 2021 on a strong note, as retail sales and factory output accelerated. In the wake of the firmer data, Bloomberg Economics last week boosted its 2021 growth forecast to 4.6% from 3.5% and said that could rise toward 6%-7% if Biden’s $1.9 trillion aid package is enacted.What Bloomberg Economics Says...Federal Reserve Chair Jerome Powell’s prepared remarks before the Senate Banking Committee showed little if any deviation from the tone of recent public statements. But “no news” is news in and of itself because it shows the Fed to be unwavering in its policy stance, despite rising Treasury yields and an improving tone in much of the economic data.--Carl Riccadonna and Yelena Shulyatyeva, economistsFor the full note, click hereThe jobs market though has softened, with claims filed for unemployment benefits jumping to a four-week high in the most recent reporting period. Payrolls last month barely rose, by 49,000, after a 227,000 decline in December, and while unemployment dropped to 6.3%, that partly reflected more people leaving the workforce.“The high level of joblessness has been especially severe for lower-wage workers and for African Americans, Hispanics, and other minority groups,” Powell said. “The economic dislocation has upended many lives and created great uncertainty about the future.”He reiterated the Fed’s pledge to keep short-term interest rates pinned near zero until the labor market has reached maximum employment and inflation has accelerated to 2% -- and is on track to moderately exceed that level for some time.The personal consumption expenditures price index rose 1.3% in December 2020 from a year earlier, well below the Fed’s 2% inflation target. After stripping out volatile food and energy costs, core inflation clocked in at 1.5%.“I really do not expect that we’ll be in a situation where inflation rises to troubling levels,” Powell said.Temporary InflationHe said inflation will pick up in coming months as current price levels are compared to depressed readings a year ago, when the economy was virtually shut down, but that effect will be temporary.Prices may also be pushed up later in the year by pent-up demand released as a growing number of Americans get vaccinated against the virus. But he said that the increase in inflation was unlikely to be large or long-lasting.Some economists, most prominently former Treasury Secretary Lawrence Summers, have warned that Biden’s $1.9 trillion stimulus plan could lead to an overheating of the economy and much faster inflation -- a concern that administration officials have pushed back on as exaggerated.While Powell studiously refrained from commenting on the Biden package, he did say that there hasn’t been a strong connection between bigger budget deficits and inflation recently.(Adds Powell bubble comments in 13th, 14th 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.
2d ago
MarketWatch
Charlie Munger says it’s ‘really stupid to have a culture which encourages [so] much gambling in stocks’
Warren Buffett’s business partner and vice chairman of Berkshire Hathaway, in a Wednesday interview with Yahoo Finance, said the GameStop chaos was encouraged by a gambling mentality on Wall Street.
13h ago
Bloomberg
HSBC to Prune Investment Bank to Fund Expansion in Asian Wealth
(Bloomberg) -- HSBC Holdings Plc will shift billions of dollars of investment to Asia’s faster growing economies as it looks to become the go-to bank for the region’s wealthy.The London-based bank said it would divert capital from its investment bank in Europe and the U.S. to fund the expansion of its Asian businesses. Europe’s largest lender said it would spend more than $6 billion over the next five years to expand its Asian operations, in particular its wealth management arm.“We are going to stop trying to be everything to everyone,” said Chief Executive Officer Noel Quinn, speaking on a call with analysts. “The new story here is Asia wealth.”The bank said it expected Asia’s share of group capital to rise from about 42% to more than half the total within the next years, a move that is likely to be accompanied by the relocation of several of the company’s top executives from London to Hong Kong.“It’s logical to have more of the management team down there,” Chief Financial Officer Ewen Stevenson said in an interview with Bloomberg Television. “Fifty percent of our revenues, and the bulk of our profits, now come from Asia and certainly the thrust of our growth aspirations are in Asia.”While earnings beat consensus forecasts, adjusted pretax profit halved, the bank said. Despite the profit slump, HSBC said it would resume paying a dividend of $0.15 after British regulators relaxed a ban intended to preserve capital last year after the virus outbreak.The bank also said it was looking to reduce its “office footprint” by 40% over the next years as more of its staff move to hybrid working arrangements pioneereed during the pandemic.The bank said it was largely sticking to cost cutting plans that will reduce its workforce by about 35,000. HSBC said it shrank staff numbers by 11,000 in 2020 and that more shrinkage was inevitable.Analysts at Jefferies said the strategy looked “a bit dull in our view” and pointed to the lack of anything “concrete” in terms of the future of its retail businesses in France and the U.S.Shares were down 2% at 12:26 p.m. in London. Shares in HSBC had risen as much as 6% in Hong Kong on the back of the announcement before paring gains.The bank’s planned Asian investments include $3.5 billion earmarked for its wealth business, which is expected to hire more than 5,000 new wealth planners over the next three to five years. The investment comes at the expense of HSBC’s global banking and markets division, which houses its investment banking operations.Volatility in the markets brought on by the pandemic saw revenue from fixed income trading rise 33% over 2020 to $6.3 billion. But a 2% rise at the equities unit fell well short of its Wall Street rivals, and advisory fees fell 2% to $3.8 billion“We are essentially reducing the amount of capital we have invested in our global banking and markets business globally and reinvesting that capital into wealth and commercial banking,” said Quinn, speaking in a telephone interview with Bloomberg.“Much of our global banking and markets business in the U.S. and Europe were low-return businesses, so you could assume that that capital is coming out of global banking and markets, principally Continental Europe and the U.S., in order to fund the investment in capital we are making into wealth and commercial banking, primarily in Asia, but also in the Middle East.”The bank hopes commercial banking and markets will drive “double-digit growth in profit.” It singled out markets in southeast Asia such as Singapore, as well as China and Hong Kong.China’s crackdown on Hong Kong has increasingly forced HSBC to accept criticism from the U.S. and U.K. as a cost of doing business in the region. Quinn was summoned to testify to British lawmakers this month over the lender’s decision to close the accounts of an exiled Hong Kong democracy activist.Expected credit losses last year hit $8.8 billion, as expected at the low end of a previously announced range of $8 billion to $13 billion. HSBC expects them to be materially lower this year.The bank is targeting getting its cost base down to $31 billion or less in 2022 as well as a $100 billion reduction in gross risk-weighted assets. It doesn’t expect to reach a return on average tangible equity target of between 10% and 12% in 2022, but will now target a return of 10% or above in the medium term.What Bloomberg Intelligence Says:HSBC’s updated guidance, with a more ambitious, $5-5.5 billion cost-savings target combined with robust across-the-board 4Q results are signs the lender has turned the corner, paving the way for what could be a number of significant analyst upgrades, even after its shares’ 50% rally from 2020’s lows.Jonathan Tyce, BI financials analystThe bank divulged little news on its plans for Europe and the U.S.HSBC said it’s in talks on selling its French retail bank and is likely to post a loss on any divestment. It’s exploring “strategic options” for its U.S. retail franchise and wants to focus on high-net worth clients.HSBC has one of the largest U.S. businesses of any non-American bank, partly a result of its ill-fated acquisition of Household International in 2003, the subprime lender that ended up costing the company billions of dollars in writedowns. Quinn said the U.S. retail bank “could be attractive to buyers.”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.
2d ago
MoneyWise
Biden's stimulus checks bill could cut your taxes by $3,100
The legislation, which goes to a vote on Friday, could put thousands back in your pocket.
12h ago
Reuters
Aston Martin says back on the road to profitability after 2020 loss
Aston Martin expects to almost double sales and move back towards profitability this year after sinking deeper into the red in 2020, when the luxury carmaker was hit by the pandemic, changed its boss and was forced to raise cash. The carmaker of choice for fictional secret agent James Bond has had a tough time since floating in 2018, as it failed to meet expectations and burnt through cash, prompting it to seek fresh investment from billionaire Executive Chairman Lawrence Stroll. For 2021, it expects "to see the first steps towards improved profitability" but is still likely to post a pre-tax loss, the carmaker said.
3h ago
Bloomberg
Capital One Starting to Raise Credit Limits in Hunt for Growth
(Bloomberg) -- Capital One Financial Corp. has begun to lift borrowing limits for certain customers as it seeks to restart growth in its sprawling credit-card business.Increases are being offered to existing customers with both prime and subprime credit scores, Chief Executive Officer Richard Fairbank said at a virtual investor conference Wednesday. The company continues to hand out smaller credit lines to new customers.Capital One, the third-largest U.S. credit-card issuer, was among the first banks to cut borrowing limits last year as jobless claims mounted amid the Covid-19 crisis. In recent years, the firm has been investing in improving its technology that has long allowed it to offer cards to people with riskier credit profiles.“This is something that happens one customer at a time,” Fairbank said. “As time has passed and we’ve validated certain things with our models and so on, we’re stepping out a little bit more on the credit lines.”Even with customers allowed to spend more on their cards, Capital One is contending with the fact that consumers have sought to pay down debt throughout the pandemic. That’s hindered loan growth on the firm’s cards.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.
14h ago
MoneyWise
What's the timing on your next stimulus check, once the House approves it?
Here's what still has to happen, following the big vote scheduled for Friday.
11h ago
Bloomberg
Hong Kong’s Richest Property Tycoon Plans U.S. SPAC
(Bloomberg) -- Li Ka-shing, Hong Kong’s richest property tycoon, is planning to raise funds for dealmaking by listing a special purpose acquisition company in the U.S., people with knowledge of the matter said.A company backed by Li’s family is working with advisers on the potential SPAC initial public offering, according to the people, who asked not to be identified because the information is private. They are considering seeking around $400 million, though the exact terms haven’t been finalized, the people said.The blank-check company could file registration documents with the U.S. Securities and Exchange Commission as soon as this week, the people said.Li is lionized by the public in Hong Kong, where he’s been nicknamed “Superman” for his investing prowess. The 92-year-old businessman became famous for his well-timed bets on everything from real estate to social media as he built a corporate empire spanning 50 countries.His family controls CK Hutchison Holdings Ltd., a $29 billion conglomerate that owns one of the world’s biggest port operators and has telecommunications, retail and infrastructure operations across Asia and Europe. They also run CK Asset Holdings Ltd., which is one of Hong Kong’s largest developers and also has investments in hotels, utilities and aircraft leasing. Both companies are now led by Li’s elder son, Victor.Li’s younger son, Richard, has already raised about $900 million via two U.S.-listed SPACs with tech mogul Peter Thiel. Richard is considering setting up a third blank-check company, Bloomberg News reported last week.No final decisions have been made, and details of the transaction could change, the people said. Representatives for Li didn’t immediately respond to emailed queries.(Adds details about Richard Li’s SPAC plans in sixth 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.
9h ago
Yahoo Finance
Charlie Munger says Costco 'has one thing that Amazon does not'
Costco has a leg up on e-commerce behemoth Amazon (AMZN) on at least one measure, according to Charlie Munger, vice chairman of Berkshire Hathaway.
15h ago
Bloomberg
Meme Stock Mania Kicks Up Anew After GameStop Shares Triple
(Bloomberg) -- A flurry of buying that saw GameStop Corp. shares almost quadruple from Tuesday’s close spread to a host of other meme stocks at the center of last month’s day trader-fueled boom and bust.GameStop jumped 104% in Wednesday’s cash session, spurred by a final-hour surge that brought its biggest advance since Jan. 29, the day Robinhood Markets restricted trading in it and 49 other stocks at the height of the frenzy. An equally weighted Bloomberg basket of those rose more than 5%, the most since late January. AMC Entertainment Inc. rallied 18% to push a three-day climb toward 59%. Express Inc. surged 41%, Naked Brand Group gained 31% and Koss Corp. jumped 55%.The activity inflated trading volumes in the meme stocks and caused an outage on Reddit’s WallStreetBets forum, the hub of the January volatility. The tumult continued in late trading, where GameStop rallied another 120% before paring the advance. At $135, the stock is up more than 200% from its close on Tuesday. Express jumped 30% while AMC was up 21%.“It seems like the Reddit crowd is still active and when you see a bit of news like that they’re pressing again,” Keith Gangl, portfolio manager at Gradient Investments, said in a phone interview. “Though I’m not sure how that’ll last,” he added.The sudden revival in left-for-dead stocks recalled an episode last month that captured the attention of Wall Street, regulators and eventually Congress, as members of Reddit’s WallStreetBets forum egged on retail hordes in an attempt to take on professional short sellers.Various explanations circulated as to what spurred the rallies. The GameStop frenzy came after Bloomberg News reported late Tuesday that the company’s chief financial officer Jim Bell was pushed out in a disagreement over strategy to make way for an executive more in line with the vision of activist investor and board member Ryan Cohen, the co-founder of online pet-food retailer Chewy.com. His addition to the board in early January underpinned the first flurry of moves in the stock after capturing the attention of WallStreetBets.The clearinghouse whose demands for increased margin collateral from Robinhood forced the brokerage to restrict trading last month published a white paper Wednesday that laid the grounds for speeding up the stock settlement process. It proposed cutting settlement to one day from two, prompting some chest puffing among the retail crowd on Reddit.The now infamous WallStreetBets forum, which boasts 9.2 million members, saw so much demand that the site would not load. When attempted, a page read “www.reddit.com is currently unable to handle this request” as of 4:43 p.m. in New York.(Updates late trading moves in third 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.
10h ago
MoneyWise
Now that mortgage rates are soaring, are Americans making a big mistake?
Borrowers are backing off, and mortgage demand is falling — but what if rates go higher?
18h ago
The Wall Street Journal
Home Depot, Macy’s Expect Pandemic Trends to Continue, for Now
Home Depot has fared better than Macy’s during the pandemic as consumers have chosen home improvements over new clothes, but they say that could change if the health crisis eases.
2d ago
TipRanks
2 Stocks Trading at Rock-Bottom Prices; Analysts Say ‘Buy’
We’re in a volatile period right now, as stocks slipping after starting the year on a strong note. Big Tech, which boomed during the pandemic lockdowns and the move to remote work, is leading the declines. Investors have taken the measure of the vaccination programs, and now, in fueled by both a belief and a hope that economies will soon return to a more normal footing, they are seeking out those stocks that will gain we revert to a ‘pre-corona’ market situation. There is also inflation to take into account. Oil prices are up this year, and that’s one commodity whose price fluctuations are certain to trickle down the supply chain. Along with rising consumer demand, there’s an expectation that prices are going to increase, at least in the near term. All in all, this is the moment to take the old market advice: buy low and sell high. With stock prices falling for now, and volatility up, the low is covered. The key is finding the stocks that are primed to gain when the bulls start running again. Wall Street’s analyst corps know this, and they are not shying away from recommending stocks that may have hit bottom. Using TipRanks database, we pinpointed two such stocks. Each is down significantly, but each also has enough upside potential to warrant a Buy rating. TechnipFMC Plc (FTI) We’ll start in the hydrocarbon sector, where TechnipFMC operates two divisions in the oil and gas business: subsea, and surface. The company’s projects, until recently, included oil and gas exploration and extraction, rig and platform operations, crude oil refining, petrochemical (ethylene, benzene, naphtha, hydrogen) production, and both on- and offshore liquified natural gas (LNG) plants. Earlier this month, the petrochemical and LNG operations were spun off as Technip Energy, a separate independently traded company. TechnipFMC retains the subsea and surface hydrocarbon activities, allowing the company to better focus its efforts. TechnipFMC may need that focus, as the company has had a difficult time gaining traction in the stock markets. Like most of its peers, TechnipFMC saw share value fall steeply last winter at the height of the coronavirus crisis, but since then the stock has only regained about half of the losses. Over the past 12 months, shares of FTI are down 53%. Q4 results are due out today, after market close, and should shed more light on the company’s full-year performance. The company has reported quarterly earnings in 2020 that are in-line with the previous year’s results. The second quarter showed a year-over-year loss; Q1 and Q3 both showed yoy gains. Covering FTI for JPMorgan, analyst Sean Meakim writes, “Since the spin-off of Technip Energies was placed back in motion on 1/7, after outperforming considerably in the first days, FTI shares are now down… With newfound visibility to an exit from “spin purgatory”, investors are giving FTI another look with some still taking a “wait and see” approach until post-spin... We view the completion of the spin as a re-rating opportunity… allowing for broader investor participation. Monetization of TechnipFMC’s stake in Technip Energies helps the balance sheet and provides optionality on capital allocation.” To this end, Meakim rates FTI an Overweight (i.e. Buy) and his $20 price target suggests the stock has room to more than double in the year ahead, with a 172% upside potential. (To watch Meakim’s track record, click here) Overall, there are 13 recent reviews on FTI, breaking down 8 to 5 in favor of Buy versus Hold. This makes the analyst consensus rating a Moderate Buy, and suggests that Wall Street generally sees opportunity here. Shares are priced at $7.35, and the $12.18 average price target implies a bullish upside of ~65% over the next 12 months. (See FTI stock analysis on TipRanks) CoreCivic, Inc. (CXW) Next up, CoreCivic, is a for-profit provider of detention facilities for law enforcement agencies, primarily the US government. The company owns and operates 65 prisons and detention centers with a total capacity of 90,000 inmates, located in 19 states plus DC. Effective on January 1 of this year, the company completed its switch from an REIT to a taxable C-corporation. The move was made without fanfare, and the company reported its Q4 and full-year 2020 results – which covers the preparation period for the switch – earlier this month. CXW showed a top line of $1.91 billion for the ‘corona year’ of 2020, a small drop (3%) from the $1.98 billion reported in 2019. Full-year earnings came in at 45 cents per share. During the fourth quarter, the company reported paying off some $125 million of its long-term debt; CoreCivic’s current long-term liabilities are listed as $2.3 billion. The company showed liquid assets on hand at the end of 2020 as $113 million in cash, plus $566 million in available credit. The heavy debt load may help explain the company’s share performance, even as revenues and earnings remain positive. The stock is down 50% in the past 12 months, having never really recovered from share price losses incurred in the corona panic last winter. 5-star analyst Joe Gomes, of Noble Capital, covers CoreCivic, and remains sanguine on the stock despite its apparent weaknesses. “We view the fourth quarter as continuation a trend, one across the last three quarters of 2020. In spite of COVID, the large reduction in detainees, the reduction in normal operations of the court system, and other impacts, CoreCivic posted relatively flat revenue and sequential adjusted EPS growth. We believe this illustrates the strength of the Company's operating model,” Gomes noted. In line with his optimistic approach, Gomes keeps his Outperform (i.e. Buy) rating and $15 price target as is. This target puts the upside potential at 97%. (To watch Gomes’ track record, click here) Some stocks fly under the radar, and CXW is one of those. Gomes' is the only recent analyst review of this company, and it is decidedly positive. (See CXW stock analysis on TipRanks) To find good ideas for beaten-down 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. It is very important to do your own analysis before making any investment.
18h ago
Bloomberg
Family Trust-Tied Novo Stock Soars Over 900% After Move to Nasdaq
(Bloomberg) -- Novo Integrated Sciences Inc., a stock controlled by a family trust tied to its chief executive, surged as much as 276% on Wednesday, a day after it switched trading to the Nasdaq.“The uplist to the Nasdaq Capital Market creates the opportunity for the company to have more visibility from a much broader pool of investors and, in turn, increased liquidity,” Robert Mattacchione, the company’s CEO, said in a statement earlier this week.Mentions of the penny stock picked up steam on Twitter and more than 3 million shares traded hands in the first 15 minutes of trading. The stock had climbed as high as $42 in the premarket after closing at $3.99 on Tuesday. Novo’s largest holder, the Mattacchione family trust’s ALMC-ASAP Holdings, had a 54% stake as of Feb. 19, according to Bloomberg data.Novo was formed in 2017 by the merger of Turbine Truck Engines, an over-the-counter-traded clean energy technology company, and Canadian clinic operator Novo Healthnet Ltd. Stocks with a low amount of tradeable shares, in Novo’s case about 5.5 million, can be particularly volatile and are often the target of daytraders.Novo director Robert Oliva picked up more than 9,000 shares earlier this week at $4.31 to $4.45 each, according to a filing.(Updates share moves throughout, adds chart.)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.
20h ago
TipRanks
3 Stocks Goldman Sachs Says Are Ready to Rip Higher
Is the bull market about to take a long breather? Not according to Goldman Sachs. In fact, the firm believes the bull market has a long way to run yet; Chief global equity strategist Peter Oppenheimer recently noted that the market was moving from a “’Hope’ phase to a longer ‘Growth’ phase.” The firm’s economists are expecting the economy to sprout higher by 6.8% in 2021 and believe that by the end of the year the unemployment rate could drop to 4.1%. And there’s enough evidence to suggest the economy is on the mend. Although unemployment rates remain high, claims have dropped since early January and retail sales have bounced back strongly. The drop in Covid-19 cases and a growing vaccinated population are an additional boost. So is the massive federal stimulus. “We’re extremely likely to get a very high growth rate,” Goldman’s chief economist Jan Hatzius added. “Whether it’s a boom or not, I do think it’s a V-shaped recovery.” With this in mind, the firm’s analysts have pinpointed 3 stocks they think are primed to roar ahead. Using the TipRanks database, we can see what the rest of the Street makes of Goldman’s choices. As it happens, these names are all Buy-rated by the analyst consensus as well. Patria Investments (PAX) The first Goldman’s choice is Patria Investments. This Brazilian asset manager is one of the leading investment companies in Latin American, having raised more than $8.7 billion in investment capital since 2015. As of the end of 3Q20, the last for which data is available, the company had total assets under management of $12.7 billion, put into 16 active funds. The direct investment portfolio included more than 55 companies. Last month, Patria made its debut in the US equity markets, listing on the NASDAQ as PAX after its January 22 IPO. The plan had been to raise $400 million in new capital; in the event, the company brought in almost $512 million. The 30.1 million shares put on the market were 3.4 million more than had been called for, and adding to the success, they sold at $17, over the $14 to $16 range expected. After the IPO, Patria was valued at $2.3 billion and that market cap has now reached $2.77 billion. The company has caught the eye of Goldman analyst Tito Labarta, who wrote, “We think Patria is well positioned to benefit from the ongoing “equitization” trends in Brazil, given historically low interest rates as investors search for higher yields… We think Patria is well positioned to grow its AUM at a healthy pace of c.20% per year over the next three years… while distributable earnings (DE) can grow 42% per year, as the company realizes performance fees from closed-end funds over the next few years.” In line with that upbeat outlook, Labarta rates the stock a Buy, and his $28 price target indicates his confidence in 35% upside growth for the next year. (To watch Labarta’s track record, click here) Patria has attracted 5 reviews already in its short time as a publicly traded company, and they break down 3 to 2 in favor of Buy versus Hold. The shares are priced at $20.74 and their $26.60 average price target implies a 12-month upside of ~23%. (See PAX stock analysis on TipRanks) Constellation Brands (STZ) Some companies need an extensive introduction, some we are familiar with. Constellation Brands is in the latter category. The company is the largest beer importer in the US, measured by sales, and consistently among the top three when measured by market share. Constellation’s portfolio includes more than 100 brands of beer, wine, and spirits, and is best known as the US owner of Mexico’s Corona and Modelo beers. In its last reported quarter, 3Q20, STZ showed solid yearly gains. Specifically, the company posted $2.44 billion at the top line, for a 22% year-over-year gain. Non-GAAP EPS was up, too, at $3.09 per share, beating consensus estimates of $2.39. It was the fourth quarter in a row that STZ beat the expectations. The company has gotten into a small spot of trouble, however, around Corona (the beer, not the virus). A lawsuit was filed by Grupo Modelo, the Mexican branch of international beverage giant AB InBev against Constellation, alleging violation of an agreement over use of the Corona brand name. Constellation purchased the US rights to that name in 2013, when AB InBev acquired Grupo Modelo, maker of Corona beer. In 2020, STZ launched Corona Hard Seltzer, and ABI now alleges that STZ’s ownership of the name applies only to beer. Constellation has hit back with filings claiming that it owns all exclusive rights to the Corona brand in the US. Bonnie Herzog, Goldman’s beverage industry expert, notes that Constellation has already won an arbitration session on the Corona issue (after all, Corona Hard Seltzer was launched in February 2020). “While we take no view on the outcome of this litigation, we believe the selloff in STZ’s stock is overdone and has provided a nice entry point especially considering how small Corona Hard Seltzer is to STZ’s total portfolio today,” Herzog noted. "We continue to expect the stock to re-rate higher over the long term driven by faster & more profitable growth." Herzog continues to see STZ as a solid portfolio addition, and maintains her Buy rating and $275 price target. At current levels, this implies ~23% upside on the one-year time frame. (To watch Herzog’s track record, click here) Wall Street generally likes STZ, as shown by the 10 Buy-side reviews compared to just 5 Holds. This gives the stock a Moderate Buy analyst consensus rating. Shares are priced at $223.93, and their $253.20 average price target suggests room for 13% growth. (See STZ stock analysis on TipRanks) Kornit Digital (KRNT) Kornit Digital inhabits an interesting niche in the tech and manufacturing worlds, producing high-speed, industrial-grade, inkjet printers, along with pigmented ink and chemical products. The company’s business customer base comes from the apparel, garment, and textile industries. Textiles make up a huge segment of the world’s economy, finding use in a wide range of sectors and appearing pretty much everywhere we go – so Kornit has no lack of customers, and even the corona crisis could not derail its business for long. This was apparent from the company’s share performance and quarterly finances over the past year. The share price has appreciated 180% in the last 12 months, while revenues, after a dip in Q1:20, have shown sequential gains in every quarter since and year-over-year gains in Q3 and Q4. The fourth quarter results included $72.3 million at the top line, a 45% year-over-year gain. The company beat the estimates on the bottom-line with Non-GAAP EPS of $0.24 coming in $0.02 above the Street’s forecast. Goldman’s Rod Hall attributes Kornit’s strength to “broad-based demand outperformance as the company continues to see tailwinds from the shift to digital printing and e-commerce.” The analyst goes on to note unexpected effects of the COVID pandemic on Kornit’s business: “While we had originally believed that current growth might be unsustainable as we exit COVID we are increasingly convinced that COVID has actually accelerated adoption of personalized fashion enabling technology. We also believe COVID might have driven companies to adopt this technology to reduce physical inventory.” Everything that KRNT has going for it convinced Hall to upgrade the stock from Neutral to Buy. In addition to the call, the analyst boosted his price target from $83 to $135, suggesting 17% upside potential. (To watch Hall’s track record, click here) Kornit holds a unanimous Strong Buy rating from the analyst consensus, having received 6 Buy reviews recently. This stock has appreciated strongly in recent weeks, pushing the share price almost up to the average price target of $124. This leaves room for ~8% upside from the current trading price of $115. (See KRNT 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. It is very important to do your own analysis before making any investment.
12h ago
Bloomberg
JPMorgan Exits Mexico Private Banking, Refers Clients to BBVA
(Bloomberg) -- JPMorgan Chase & Co. is shutting its private banking business in Mexico, according to people with knowledge of the matter, as wealthy clients in some of Latin America’s largest economies move their money to international financial capitals.The biggest U.S. bank signed an agreement to refer local business to BBVA Mexico, the local unit of Banco Bilbao Vizcaya Argentaria SA, said one of the people. Still, the New York-based firm will continue to serve clients from Mexico through its platform outside of the country, one of the people said.The decision to discontinue local wealth management services in Latin America’s second-biggest economy follows a similar move in Brazil last summer in which JPMorgan wound down its local private-banking business and referred Brazilian wealth clients to Banco Bradesco SA.Wealthy families across Latin America have been seeking out money managers in world capitals in recent years, bankers said. In Mexico, the populist policies of President Andres Manuel Lopez Obrador, including a tax crackdown, have pushed some families to transfer more wealth abroad. Offshore accounts represent the majority of JPMorgan’s private-banking business in Mexico, one of the people said.JPMorgan will continue to maintain other businesses in Mexico, including investment banking, trading and treasury services. A company spokesman declined to comment.JPMorgan is the biggest wholesale bank in Mexico among the global giants without retail operations, according to data from banking regulator CNBV. The firm’s other business lines have been growing, one of the people said, and last year the bank increased its capital by $8 billion pesos ($393 million) to 19.5 billion pesos, data show.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.
12h ago
Bloomberg
Dave Portnoy Hurls Insults at Robinhood’s Vlad Tenev in Livestreamed Chat
(Bloomberg) -- Robinhood Markets Chief Executive Officer Vlad Tenev went into his interview with Dave Portnoy looking forward to discussing Bulgarian pizza. Within the first few minutes of their chat, he was called a “rat” by the brash Barstool Sports founder.The insults continued throughout their 40-minute livestreamed discussion on Tuesday night. Portnoy played an edited video that depicted Tenev as a clown, told him that everyone watching “hates your guts” and branded the CEO’s hairstyle at a government hearing last week as “ridiculous.”The source of the acrimony was Robinhood’s decision to curb trading last month during the mania over “meme” stocks such as GameStop Corp. Portnoy, a cult figure for individual investors who follow the mantra that “stocks only go up,” has previously said that he lost about $700,000 after selling his “meme” stock holdings during the market slide that followed Robinhood’s clampdown.The brokerage’s move was a precautionary measure that was necessary, Tenev told Portnoy on Tuesday. “We very likely could have faced a liquidity issue in the future,” he said. “We had to act to protect the firm and our customers.”Portnoy pressed the CEO on why the company failed to allow customers to freely trade and communicate the issues it was facing more clearly. He also asked why Robinhood hadn’t provided more transparency on its liquidity situation.“The L word is a big thing in financial services,” Tenev said. “‘Liquidity issue’ means you can’t meet your capital requirements or your deposit requirements, and you’re essentially dead. That was not the case with Robinhood. We met our capital requirements, we met our deposit requirements.”Those explanations seemed to do little to assuage Portnoy, who has accused Tenev of siding with Wall Street and against individual investors.“You know everybody watching this hates your guts right,” Portnoy said Tuesday.“That’s what I hear,” Tenev responded.Portnoy told Tenev that the no-fee brokerage turned its back to its customers and “killed the little guy” by causing stocks to crater. When he pressed Tenev on why Robinhood didn’t also restrict the selling of shares to freeze the market, the executive responded it was to protect long positions.Tenev said the decision to restrict trading was to meet deposit requirements for clearinghouses and once again that there was no collusion between Robinhood and any hedge fund or market maker. He told Portnoy that until recently he hadn’t heard of Melvin Capital Management, which lost billions closing out its GameStop position and reducing other wagers.Still, the brokerage was witnessing “incredible growth” because of the hype. It was the first time that something going viral on social media transplanted over to the financial markets, and the structure of the system has to be improved to prevent any future scandals, Tenev said.By the end of the interview, the Robinhood CEO, who was wearing a hat that read “Taco Tuesday” on it, said he only wore the hat to cover his hair because Portnoy had made fun of it during the GameStop House Financial Services hearing last week.“Vlad, your hair, it looks normal here,” Portnoy said. “It looked like, your scalp, somebody took a wig and put it on, I mean it was a ridiculous look.”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.
19h ago

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