Republican strategist Ford O'Connell responds to Goodyear's reversal on its policy forbidding employees from wearing MAGA and All Lives Matter gear but could wear BLM or pride clothing after President Trump called for a boycott.
Republican strategist Ford O'Connell responds to Goodyear's reversal on its policy forbidding employees from wearing MAGA and All Lives Matter gear but could wear BLM or pride clothing after President Trump called for a boycott.
(Bloomberg) -- U.S. equity-index futures dropped alongside most stock markets after an acrimonious American presidential debate highlighted the risk of a contested vote in November. A gauge of the dollar edged higher.S&P 500 futures fell as much as 1.3% in the hours after the chaotic sparring between Donald Trump and Democratic hopeful Joe Biden during which the president suggested vote-by-mail could be rife with fraud. In Europe, declines in industrial-goods and tech shares outweighed gains in utilities.“What we’ve seen from the debate is the reinforcement that if Biden wins, Trump is not going to accept that,” said Chris Weston, head of research at Pepperstone Group Ltd. in Melbourne. “People positioned for an ugly contest afterwards have been validated.”Investment firms were also recalibrating positions on the final day of this quarter. Walt Disney Co. shares fell in pre-market trading after it said 28,000 workers will be let go in its slumping U.S. resort business, marking one of the deepest workforce reductions of the Covid-19 era.Global investors are keeping an eye on news about coronavirus vaccines and on talks in Washington for a new stimulus package that’s set to reach a critical juncture this week. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke Tuesday morning for 50 minutes and are set to speak again Wednesday.Traders are preparing for euro-area inflation data on Friday. Sub-zero headline CPI readings came for France and Germany and put a damper on the euro Wednesday as they ratcheted up the probability of additional easing by the European Central Bank. ECB officials are speaking Wednesday.Earlier in Asia, China Evergrande Group’s bonds and stocks climbed after the developer took a major step toward avoiding a cash crunch. China markets are shut from Thursday for a week of holidays. South Korea is closed Wednesday. Equity gauges in Japan and Australia declined by at least 2%.Here are some key events coming up:A large line up of ECB officials, including President Christine Lagarde, speak Wednesday at the ECB and its Watchers Conference.The EIA crude oil inventory report comes out Wednesday.The September U.S. employment report on Friday will be the last before the November election.These are the main moves in markets:StocksThe Stoxx Europe 600 Index fell 0.3% as of 10:14 a.m. London time.Futures on the S&P 500 Index fell 0.9%.Nasdaq 100 Index futures fell 1.1%.The MSCI Asia Pacific Index decreased 0.6%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.2%.The British pound sank 0.4% to $1.2816.Switzerland’s franc weakened 0.1% to 1.0806 per euro.The offshore yuan was little changed at 6.8182 per dollar.BondsThe yield on 10-year Treasuries decreased less than one basis point to 0.65%.Germany’s 10-year yield advanced less than one basis point to -0.54%.Britain’s 10-year yield increased less than one basis point to 0.188%.New Zealand’s 10-year yield climbed five basis points to 0.519%.CommoditiesWest Texas Intermediate crude decreased 1% to $38.90 a barrel.Gold weakened 0.8% to $1,882.32 an ounce.Natural gas dipped 2.1% to $2.51 per mmbtu.Iron ore surged 4.2% to $121.67 per metric ton.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
USA TODAY reached out to tax attorneys and legal experts to get their reaction to the New York Times report on Trump's taxes. Here's what they said.
Nio Inc - ADR (NYSE: NIO) shares have broken above the $20 level again following positive sell-side commentary Tuesday on the electric vehicle manufacturer. The Nio Analyst: Deutsche Bank Securities analyst Edison Yu reiterated a Buy rating on Nio with a $24 price target. The Nio Takeaways: Compelling evidence exists that consumers are increasingly perceiving Nio as a "high-quality premium brand" with best-in-class technology and service, Yu said in a Tuesday note.Nio's average customer referral rate increased from 52% in 2019 to 62% in the first half of 2020, the analyst said. Recent studies have shown that Nio's favorability among customers is higher than both BMW and Mercedes-Benz, he said -- and that the Chinese EV maker is one of the most reliable battery EVs across all segments based on the number of problems, even ahead of Tesla Inc (NASDAQ: TSLA). Yu said he expects Nio to officially unveil its all-electric sedan, the EE7, later this year, with a revamped hardware sensor suite that will enable level four autonomy by 2022.This should alleviate concerns about the R&D roadmap, the analyst said. As battery electric vehicle adoption increases and word-of-mouth spreads, Nio can take material share in the premium segment as consumers begin to understand the value proposition and quality of its products and services, he said. In the near-term, Deutsche Bank expects record deliveries and margins in the third and fourth quarters thanks to the newly launched EC6 SUV coupe, 100 kilowatt-hour battery pack option and the battery-as-a-service rollout.On Monday, BofA Securities analyst Ming Hsun Lee maintained a Buy rating and $23 price target following the unveiling of Nio's new advanced driver assistance system and other use enhancement strategies at the China Auto Show over the weekend.NIO Price Action: At last check, Nio shares were rallying 10.39% to $20.76. Related Links:Why Nio Has A Shot At Becoming The 'Tesla Of China'Nio Shares Volatile After EV Maker Announces Redemption Of 8.6% Nio China Stake Photo courtesy of Nio. Latest Ratings for NIO DateFirmActionFromTo Sep 2020Deutsche BankInitiates Coverage OnBuy Aug 2020Morgan StanleyUpgradesEqual-WeightOverweight Aug 2020UBSUpgradesSellNeutral View More Analyst Ratings for NIO View the Latest Analyst RatingsSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Chinese EV Maker Nio To Announce New Rapid Charging Service Friday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The best dividend stocks give a powerful boost to income and retirement portfolios. These stocks offer both solid yields and strong performance.
(Bloomberg) -- Billionaire Peter Thiel was a no-show at the investor day leading up to the direct listing for Palantir Technologies Inc., the data-mining company he founded 17 years ago. And no one from the company will ring the bell at Palantir's market debut.Thiel's absence from the Wall Street pomp belies the outsize influence he'll continue to wield long after the company goes public. Thiel will have more control over the company than any other individual or investor group, and an unconventional voting structure will award additional power to Thiel and two other co-founders in perpetuity.Palantir isn’t the first company in Silicon Valley to use super-voting shares to cement control for its founders. Other tech leaders including Mark Zuckerberg, Snap Inc. Chief Executive Officer Evan Spiegel and WeWork CEO Adam Neumann were all given disproportionate control over their companies as they headed to the public markets. But good-governance advocates say that handing so much power to a limited group of people could undermine the standards of accountability meant to be enforced by the market, making it harder for smaller shareholders to exert their will in cases where they believe a company is being poorly run.“They set it up so Peter Thiel can still sort of run it like a private company and still have the advantage of being public,” said Michael Weisbach, a professor at Ohio State University’s Fisher College of Business who specializes in corporate governance and private equity. “They obviously want to keep control of this company and don’t want a bunch of outsiders.”Palantir has been unapologetic about its governance mechanics. Its CEO, co-founder Alex Karp, has repeatedly told would-be backers to pick a “different company” if they don’t like the way it operates.Few expect Palantir’s voting mechanics to derail the company’s planned public listing. This year, Palantir expects to take in more than $1 billion in revenue and, for the first time, turn an adjusted profit, excluding stock compensation. While Weisbach said that its valuation would have been higher without the tightly controlled governance and voting structure, there are optimistic signs about how public investors will receive the company. Banks have reportedly told investors that Palantir could start trading at a market valuation of almost $22 billion. Representatives for Thiel and Palantir declined to comment for this story.Palantir’s technology collects and combines ever-changing data streams into what it calls a single “source of truth,” which its clients can then mine for meaning and use to make decisions. Applications vary widely based on the customer. Merck KGaA uses Palantir’s software to speed drug discovery. United Airlines Holding Inc. uses it to optimize flight routes. And the U.S. government uses it for tasks including identifying roadside bombs in Afghanistan, catching tax cheats and, more controversially, locating people who entered the U.S. illegally for deportation.Longtime Palantir investor Eric Munson of Adit Ventures said that the company’s aggressive voting structure is necessary to ensure Palantir can continue to operate without influence from outside parties who disagree with its business. Some of the company’s work is politically sensitive, he added, and its voting structure will mean that the founders can pick and choose clients whose interests align with those of the U.S., regardless of investor pressure. "I like that there's no ambiguity where the leadership stands,” Munson said. That reasoning has limited purchase with groups like Institutional Shareholder Services, a proxy advisory firm. “The problem is power without accountability,” said Marc Goldstein, the group’s head of U.S research. Goldstein cited Mark Zuckerberg’s control over Facebook as a textbook example of too much control accruing to one man. As a long-serving board member of Facebook, Thiel knows that structure well.“Palantir is talking about how different they are from Silicon Valley, and yet they are taking on the absolutely worst aspect of Silicon Valley with this,” Goldstein said. Palantir has always been tightly held. It has only recently started adding independent board members, and even the independent directors have close links to Thiel, the board chairman. This summer, Palantir appointed three new directors, including 8VC partner Alexander Moore, who was an early Palantir employee, and former journalist Alexandra Wolfe Schiff, who wrote a book called “Valley of the Gods” that was largely about Thiel. Palantir has said it would comply with Securities and Exchange Commission rules that it have a majority of independent directors within one year of going public. Currently, the company says three of its six current board members are independent.Even when it does add more directors, though, power will remain concentrated in the hands of a few people. According to Palantir’s SEC filing, three of the company’s founders—Thiel, Stephen Cohen and Karp—will receive Class F shares entitling them to 49.99% of the company’s voting power, control that will not be directly tied to the number of other shares they own. The structure is highly unusual but not without precedent, according to Weisbach, who said the Ford family set up a similar system more than 60 years ago at Ford Motor Co. That company also established that a percentage of the vote would remain with the family regardless of its financial stake in the company. Even without a mechanism to hand more voting control to the founders, Thiel would still wield substantial influence at Palantir. As the largest investor in the company, he will own 29.8% of all Class B shares, which give the holder 10 votes per share. Thiel owns more Class B shares than any other individual or entity, including Founders Fund, the venture firm Thiel founded. That group, where he still serves as a partner, holds the next highest amount at 12.7%.Thiel also has a stake in several of the entities that have invested in Palantir. Besides his involvement with Founders Fund, Thiel is an investor in funds managed by venture capital firm 8VC and in the merchant bank Disruptive Technology Advisers, which oversees Palantir backer Disruptive Technology Solutions, according to people familiar with the matter who asked not to be identified discussing private information. Henry Hofman, a corporate governance researcher at Morningstar corporate ratings firm Sustainalytics, said the net result was another unfortunate example of Silicon Valley founders grasping for too much control. “Anything that strays away from the one-vote, one-share structure, we see that negatively,” he said. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Spotify co-founder and CEO Daniel Ek is among a group of investors, including Goldman Sachs and Volkswagen, that are backing a high-tech battery company founded by two former Tesla executives.
The first rule that applies to healthcare developers is: "do not mess with the FDA." Case in point: Shares of vaccine maker Inovio (INO) crashed by 33% over the past two trading sessions, as a result of the FDA halting the planned Phase 2/3 clinical trial of its DNA COVID-19 vaccine candidate INO-4800.The study has been put on hold, with the FDA citing the need for more questions regarding the trial. Inovio stated it will address the questions in October, following which, the FDA has 30 days to decide whether the trial can go ahead.Inovio’s shares have been subject to extreme price swings since the company joined the race to develop a coronavirus vaccine. However, after soaring by 860% in the first half of the year, the share price has pulled back significantly. Since closing at $31.69 on June 29, the stock has shed 64% of its value, as concerns it won’t be able to get its vaccine over the finish line have come to the fore.H.C. Wainwright analyst Ram Selvaraju remains skeptical, too, staying on the sidelines for now. The 5-star analyst reiterated a Hold rating on INO shares and cited the company’s market valuation and volatility as the reasons behind the lack of a price target. (To watch Selvaraju’s track record, click here)Selvaraju said, “As a reminder, the company originally planned to start the Phase 2/3 trial this month. We now estimate that the trial could start by the end of 2020 if the FDA reviews the response and lifts the partial clinical hold in a timely manner... We continue to expect the publication of full Phase 1 data set in a scientific journal in the coming months. In addition, the partial clinical hold does not impact the advancement of Inovio’s other candidates in development.”There is similar sentiment among Selvaraju’s colleagues. The stock has a Hold consensus rating based on 2 Buys, 5 Holds and 1 Sell. However, there’s possible upside of 21% over the next 12 months, given the average price target clocks in at $13.71. (See Inovio stock analysis on TipRanks)To find good ideas for healthcare 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 analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Nikola-GM deal doubts are growing after two women accused Nikola founder Trevor Milton of sexual assault. It's unclear if the partnership will close Wednesday. Nikola stock fell.
Stock futures drifted higher Tuesday evening as investors considered the first presidential debate and continued to eye developments among congressional lawmakers for further fiscal stimulus.
When it comes to the market’s wild swings, is the glass half empty or half full? Oppenheimer’s chief investment strategist John Stoltzfus is taking the latter view.Despite the volatility that has ruled the market over the last few weeks, Stoltzfus actually likes what he’s witnessing in both the market and the economy. In particular, he points to U.S. companies that have been outperforming most other markets around the world as exciting plays, with the innovation in the U.S. reflecting a key component of his bullish thesis.“The U.S. is outperforming most of the markets around the world — whether it’s developed markets or emerging markets... We’ve taken out the froth that had come into the market in certain [mega cap] names. It may be a good opportunity to pick up some really good, high quality growth stories that are on sale right now,” Stoltzfus noted.Additionally, the strategist believes the S&P 500 could climb back to its September 2 high point, based on improving economic data. The approval of a COVID-19 vaccine as well as an election outcome that is “friendly to the domestic economy, business, job growth and the taxpayer” could also push the index higher.Turning Stoltzfus’ outlook into tangible recommendations, Oppenheimer analysts are pounding the table on two stocks, with these pros seeing over 100% upside potential in store. Running the tickers through TipRanks’ database, we wanted to find out exactly what makes them so compelling.Brickell Biotech (BBI)Focused on the development of innovative and differentiated therapeutics for the treatment of skin diseases, Brickell Biotech wants to improve the lives of patients everywhere. Given the potential of the company's lead candidate and its $0.82 share price, Oppenheimer thinks that now is the time to pull the trigger.Sofpironium bromide (SB), a prescription treatment for axillary hyperhidrosis (AH, or excessive underarm sweating), is entering U.S. Phase 3 trials. This program will consist of two identical six-week studies, and will evaluate its ability to improve the condition per the objective (gravimetric sweat production) and subjective (HDSM-Ax) co-primary endpoints. Each is expected to last 12 months, and the first will kick off next quarter.Roughly 10 million people in the U.S. suffer from AH, with this condition interfering with daily social and professional activities. Currently, only 2.3 million receive prescription treatment, and some resort to invasive or permanent interventions like Botox, MiraDry or surgery.Oppenheimer’s Leland Gershell argues that more conservative approaches could be used to meet these medical needs. He also believes the recent entry of Eli Lilly’s competing product, Qbrexza, represents a significant step forward. That said, there’s “room for improvement” with this anti-cholinergic approach.Looking at a U.S. Phase 2b trial, the highest dose of BBI's SB gel (15%) demonstrated 46% greater sweat reduction per gravimetric analysis compared to the placebo, with significant reductions in a validated patient-reported outcome instrument seen at all doses. Based on the trial data, efficacy is over 50% better than Qbrexza per label, despite higher baseline severity. In addition, their safety profiles were relatively similar.It should be noted that BBI will market the drug to U.S. dermatologists through a specialty salesforce of 120 representatives. According to Gershell’s estimates, uptake by 110,000 patients per year (just 5% of the currently treated AH population) translates to $200 million in gross sales. The analyst adds that patent issuance could extend market exclusivity to 2040.Adding to the good news, on September 25, BBI announced that Kaken Pharmaceutical, its development partner, got the green light to manufacture SB in Japan for the treatment of AH. Japan is the first country to approve the candidate, with the launch expected later this year.To sum it all up, Gershell stated, “By virtue of its efficacy, tolerability, and antiperspirant-like application, we believe SB offers an attractive profile in a market that offers much room for improved solutions. We encourage risk-tolerant investors to build a position ahead of upcoming newsflow.”To this end, Gershell rates BBI an Outperform (i.e. Buy) along with a $5 price target. This target conveys the analyst’s confidence in BBI's ability to surge 502% from current levels. (To watch Gershell’s track record, click here)Looking at the consensus breakdown, 2 Buys and no Holds or Sells have been published in the last three months. As a result, BBI gets a Moderate Buy consensus rating. The $5 average price target is identical to Gershell’s. (See BBI stock analysis on TipRanks)Aldeyra Therapeutics (ALDX)As for Oppenheimer’s other pick, Aldeyra Therapeutics works to bring new treatment options for immune-related diseases to market. Based on the solid progress of its pipeline, the firm has high hopes for this healthcare name.Representing Oppenheimer, analyst Justin Kim points out that he came away from a recent conversation with the CEO even more confident in ALDX’s long-term growth prospects. Pivotal studies on reactive aldehyde species (RASP) are slated for Q4 2020, evaluating the action of reproxalap, Aldeyra's lead therapy designed to clamp down on overactive inflammation, on tear levels of RASP over a period ranging from 1-2 days to 28 days. “Based on Phase 2a results, we are confident in the ability to replicate results in Q4 2020,” Kim stated.Given the potential of dry eye disease (DED) in the near-term, the analyst expects significant investor focus to land on clinical trial execution (Phase 3 RASP studies and safety study), which would support a potential NDA filing by the end of 2021, in Kim’s opinion. “Despite some volatility in the shares, we see a solid setup emerging as the company initiates its Phase 3 RASP studies in dry eye disease (DED),” he said.Speaking to the potential of RASP as an accepted dry eye endpoint, ALDX has experienced “a watershed moment,” with it facilitating an expedited path to registration (from traditional sign endpoints) and greater likelihood of clinical trial success, based on reproxalap's mechanism of action (MoA) as a RASP-trap, according to Kim.He added, “Moreover, agreement on RASP could have broader implications for a commercial launch in dry eye, a market that we believe will see segmentation as more therapies with targeted MoAs become incorporated into the armamentarium.”“We continue to be impressed by the progress in achieving a potential concurrent filing for dry eye and allergic conjunctivitis (AC), appreciating the importance of a differentiated dry eye agent with action also in AC. As the dry eye therapeutic landscape increases its options, we expect greater segmentation of the heterogeneous patient population potentially beginning with reproxalap's positioning in ‘allergic dry eye’,” the analyst concluded. For the rest of 2020, focus is likely to stay on Phase 3 study designs (assay work/development), execution and the potential readout in DED, which could set the stage for a commercial launch in DED and AC in 2022.If that wasn’t enough, based on the broader pipeline of candidates targeting PVR, inflammatory conditions and COVID-19, Kim sees “a rich environment of catalysts for the shares over the coming 12-18 months.”It should come as no surprise, then, that Kim stayed with the bulls. To this end, he kept an Outperform rating and $15 price target on the stock. Investors could be pocketing a gain of 110%, should this target be met in the twelve months ahead. (To watch Kim’s track record, click here)What does the rest of the Street have to say? Only Buy ratings, 2 to be exact, have been issued in the last three months. So, the consensus rating is a Moderate Buy. In addition, the $23.50 average price target suggests 227% upside potential from current levels. (See ALDX 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.
With technological innovations accelerating, there have been many players emerging -- developing new products for ease of use, storage and efficiency. Two companies in particular, Nvidia Corp. (ticker: NVDA) and Advanced Micro Devices ( AMD), have ascended to the limelight for their unique capabilities and proprietary products. Nvidia has laid the groundwork for graphics processing unit-accelerated computing, a system used in engineering applications driven by the growth in the gaming market's demand for 3D graphics.
An acrimonious debate between Donald Trump and Joe Biden amps up investors' worries about a contested election; Disney to cut 28,000 workers; Boeing moving 787 production to South Carolina.
(Bloomberg) -- A New York Times story based on Donald Trump’s long-sought-after tax data shows he avoided paying income taxes for most of the past two decades and paid only $750 the year he was elected president.That doesn’t mean he isn’t a billionaire.By pairing moneymaking businesses with spectacular money-losers, the Trump Organization has been able to shield profits generated by office properties and “The Apprentice” from tax collectors. It’s a souped-up version of the formula deployed by America’s landlord class for decades. But tax losses are different from operating losses, and the new data don’t necessarily show his business empire is heading into crisis, even if it’s carrying sizable debts.“Your tax return at the end of the day shows income and whatever deductions are claimed against that income. That’s it,” said Thorne Perkin, president at Papamarkou Wellner Asset Management. “It doesn’t necessarily show net worth.”The newspaper’s report described the extent of Trump’s tax-cutting strategies, such as taking deductions for consulting fees to his daughter and for hairstyling, which resulted in paying far less than poorer Americans. Although the report raises questions about the legality of some of the maneuvers, the new details don’t affect the Bloomberg Billionaires Index estimate of his wealth. His net worth is based chiefly on the value of his office and commercial property holdings, minus debts that were already known. The index estimated his net worth at $2.7 billion as of August, down $300 million from mid-2019, hurt by declining prices for certain types of real estate holdings.Trump’s office properties include commercial spaces at Trump Tower, a leasehold on 40 Wall Street in downtown Manhattan and a 30% interest in two office towers co-owned with Vornado Realty Trust. Collectively, the assets are valued at about $1.9 billion, and Trump’s share of the debt that encumbers them is about $670 million -- meaning they constitute almost half of his net worth.Financial records for his golf courses in Europe have long shown that, after including items such as depreciation, they run in the red. The tax data obtained by the Times reveal Trump’s American golf courses operate similarly.Depreciation is crucial for real estate investors. Depending on the type of property at hand, they can write off a portion of its value over a useful lifetime pre-determined by the Internal Revenue Service. That allows investors to claim tax losses on the property even when they’re putting money in their pockets.“You want to show as much losses as you possibly can for your deductions,” said Papamarkou’s Perkin. “That’s a big part of the advantages of real estate investing.”The president’s son, Donald Trump Jr., disputed the Times’s reporting on Tuesday while acknowledging that Trump exploited depreciation, tax credits and other provisions of the tax code.“He’s paying tens of millions in taxes -- now, he’s not going to pay more” than he needs to, the president’s son said in an interview on Fox Business Network. “And by the way, he’s following the tax code that people like Joe Biden, who has been in DC for 47 years, have written. He’s playing by their rules. Joe Biden is taking advantage of the same loopholes.”The Times in a Monday story also revealed that when Trump did pay taxes it was because of cash from his role fronting “The Apprentice” and not as a real-estate developer. He earned $197 million from the show and $230 million from branding, speaking engagements and licensing deals off the back of the fame the series provided. As well as borrowing against Trump Tower and selling stocks and bonds, he plowed some of that money into the money-losing golf courses.Carrying LoansThe tax documents described by the Times aren’t enough to draw conclusions about the profitability of Trump’s empire. But even if his golf courses are bleeding money, they contribute comparatively little to the tally of his fortune -- about $430 million before debt. Prices for golf resorts are down after years of decreasing interest in the sport. Younger generations simply aren’t taking it up as quickly as their elders are leaving it behind.Trump has long been required to disclose a road map to his assets and liabilities. In 2015, then a contender for the Republican party’s nomination for president, he released a financial disclosure listing the lenders behind his loans, ranges for their outstanding balances, when they were issued and when they must be repaid.That several are due in the next few years isn’t unusual in commercial real estate, where most loans run five to 10 years and are refinanced regularly. Unless there is a serious deterioration in the performance of his properties, it’s likely his portfolio can be refinanced before loans mature.Though Trump has carried on this balancing act for years, his re-election could make obtaining new loans harder if potential lenders don’t want to face the prospect of foreclosing on a sitting U.S. president. Conversely, Trump is engaged in a variety of court fights that could accelerate once he leaves office and complicate refinancing. The Covid-19 pandemic also may take a lasting toll on the value of his holdings, making future loans more onerous.His biggest financial vulnerabilities remain his hotel in Washington, where the pandemic has slowed business, and Doral, a sprawling golf resort in Florida. He has taken out nearly $300 million of personally-guaranteed loans from Deutsche Bank AG against these properties. The debts mature in 2023 and 2024, according to his personal financial disclosure.Room to BorrowBut Trump, whose earlier career included a series of bankruptcies, also has a safety valve: the office properties.When he refinanced Trump Tower in 2012 with a $100 million loan, it was appraised at $480 million. A 2015 refinancing of 40 Wall Street fetched a $160 million loan on a $540 million appraisal.That left both properties relatively low-levered for Manhattan real estate, suggesting either a newly learned financial conservatism on Trump’s part or a squeamishness on the part of the lender, Ladder Capital. Ladder, which specializes in loans for commercial property, is Trump’s second-biggest lender after Deutsche Bank.An August appraisal of the buildings by the Bloomberg Billionaires Index, based on current net income and prevailing capitalization rates, was less sanguine, valuing them at $365 million and $375 million respectively. But so long as the pandemic doesn’t crater office values, the properties could carry far more debt, were Trump to need it.(Updates with comments from Trump’s son in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tesla is likely to report third-quarter vehicle deliveries in the first several days of October, with Elon Musk gunning for a new record that will likely have a big impact on Tesla stock.
Space, the final frontier. Throughout history, the expanse that exists beyond Earth has captivated people all over the world, with space exploration continuing to take giant leaps forward since Apollo 11 first landed on the moon.Now, outer space has peaked Wall Street’s interest. Given the high levels of private funding and advances in technology, the pros argue there could be major implications should space become more accessible and less expensive to reach. To this end, new markets such as satellite broadband, high-speed product delivery, reusable rockets and human space travel are emerging.Speaking to the potential opportunity, according to a recent KPMG report, by 2030, the global space industry could reach $600 billion, with it currently worth $350 billion. Bearing this in mind, we used TipRanks’ database to zero in on two space stocks reaching for the stars, so says the Street. Boasting the analyst community’s full support, both tickers have received a “Strong Buy” consensus rating. Virgin Galactic Holdings (SPCE)By offering high-speed point-to-point travel, Virgin Galactic wants to commercialize space travel and revolutionize commercial flight. Given the significant backlog of demand for commercial spaceflight, several members of the Street have high hopes for this space stock.Representing Cowen, analyst Oliver Chen sees SPCE as “uniquely positioned to benefit from the growing consumer interest toward luxury experiences, especially among high-net-worth individuals.” He added, “We believe a substantial growth opportunity lies ahead with the commercial spaceflight business, which already has ~600 reservations, and the development of high-speed point-to-point travel.”Looking at the market opportunity, Chen estimates that this part of the business could push SPCE’s top-line to $1 billion-plus by 2030, growing at a 60%-plus CAGR (2021-2030), with an EBITDA margin of 46%. According to the analyst, there’s a total addressable market (TAM) for commercial spaceflight (suborbital) of roughly 2.4 million individuals with a net worth of $5 million-plus globally.On top of this, SPCE could use its technology to develop additional revenue streams such as high-speed P2P commercial air travel. The development of hypersonic aircrafts would make 85% of the global network pairs accessible in a one-day trip. In addition, the analyst thinks the high-speed P2P opportunity could yield a TAM of $985 billion by 2050, and SPCE's market share could clock in at 20%. “P2P is in very early innings but we believe the company has the resources, capital, and experience to pursue this business line,” Chen noted.Given that the company’s leadership team brings expertise from NASA and Disney to the table, Chen argues SPCE is capable of capitalizing on the opportunity, with solid execution potentially solidifying its status as an experiential luxury brand.The positioning of its commercial space flight offering as a luxury airline experience, which is what consumers are more used to, is likely to give SPCE the first-mover advantage over others like Blue Origin. “Given the high fixed cost of operating a space tourism operation, first-mover advantage looks critical to success; and VG appears better positioned than BO to get it,” Chen mentioned.What else could give SPCE the first-mover advantage? Chen points to SPCE’s 10-plus years of technology developed with $1 billion of investment made to-date and the vertically integrated aerospace development capabilities. What’s more, SPCE has “created competitive moats in a high-barrier-to-entry industry and benefits from strong consumer demand, which should support a premium pricing structure.”Based on all of the above, Chen puts an Outperform (i.e. Buy) rating and $22 price target on the stock. (To watch Chen’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 7 to be exact, have been issued in the last three months. Therefore, the message is clear: SPCE is a Strong Buy. With a $25.43 average price target, shares could rise 22% in the next year. (See Virgin Galactic stock analysis on TipRanks)Aerojet Rocketdyne Holdings (AJRD)Serving customers that include the U.S. Department of Defense (DoD), NASA and other agencies and companies, Aerojet Rocketdyne develops and manufactures advanced propulsion and energetics systems. Given its recent contract awards, multiple analysts believe this company’s long-term growth prospects are strong.5-star analyst Ken Herbert, of Canaccord Genuity, recently met with AJRD’s new CFO, coming away from the discussion with his bullish thesis very much intact. The company expects the space business, which makes up 40% of sales, to be flat to up slightly, due to the recent SLS RS-25 engine order, with the core defense business (60% of sales) set to see steady growth.“While near-term margin upside is limited, we believe the revenue visibility, strong balance sheet and incremental opportunities in both space and defense contribute to a scarcity value for AJRD not reflected in the stock,” Herbert commented.That said, new programs are an essential piece of the puzzle here. Earlier in September, AJRD announced that it will build two elements of the new ground based strategic deterrent (GBSD) nuclear missiles for Northrop Grumman, which received a $13.3 billion, 8.5-year EMD contract to initiate early production of the “Minuteman IV” platform. AJRD is responsible for manufacturing a large solid rocket motor for the missile’s upper stage and the post-boost propulsion system needed to guide the nuclear warheads to their targets through apogee (the highest point of their parabolic flight arc). Weighing in on the deal, Herbert commented, “The program is expected to be substantial to both Aerojet and Northrop, with 400 active and 242 spare ICBMs expected to occupy the existing launch sites in the American West. It has been estimated that the GBSD program will be worth $63 billion during its first 20 years of life, which is likely to be extended given the longevity of the current Minuteman III deterrent.”Adding to the good news, AJRD’s backlog has increased to a record high of $6.8 billion as of Q2 2020, a 48% gain from the prior-year quarter. According to Herbert, a key driver of this growth has been the $1.8 billion NASA contract to construct 18 new RS-25 engines to support at least five additional Artemis lunar missions beyond the three currently planned. “As such, visibility into Aerojet’s business with NASA continues to look promising through 2030. Aerojet has also continued to see backlog growth on THAAD, hypersonics, Standard Missile and GMLRS,” the analyst stated. If that wasn’t enough, Herbert believes missile defense and classified hypersonics programs are likely to see solid backlog growth in the near-term.On top of this, in August, the U.S. Air Force awarded two contracts for the National Security Space Launch (NSSL) program to ULA (a Boeing and Lockheed joint venture) and SpaceX. The implication? “Aerojet Rocketdyne is seen as a winner of the contact outcome, which ensured that the company will continue to provide content on a majority of U.S. military and intelligence launches. AJRD will see its upper stage engine content double on the new ULA Vulcan rocket under this contract, which utilizes a new Centaur upper stage (the Centaur V) powered by two RL10 engines, as opposed to one RL10 on the legacy Atlas V rocket,” Herbert explained.Everything that AJRD has going for it convinced Herbert to reiterate his Buy rating. Along with the call, he maintained a $54 price target, suggesting 34% upside potential. (To watch Herbert’s track record, click here)All in all, other analysts are on the same page. AJRD’s Strong Buy consensus rating breaks down into 3 Buys and no Holds or Sells. Meanwhile, the $56 average price target brings the upside potential to 39%. (See AJRD 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.
Bull or bear market, no investment is a sure thing. Especially in the current financial environment, which remains riddled with uncertainty, finding compelling plays can be challenging for even the most seasoned market watchers. However, this is not to say that investment opportunities with stand-out growth prospects can’t be found.Roth Capital research analyst Zegbeh Jallah pointed to the healthcare sector, in particular, as an area of the market worthy of investor attention.“Biotech had had a strong performance during the midst of the pandemic, and we expect it to remain so, largely driven by solid fundamental catalysts. This is supported by the resumption of preclinical and clinical efforts at many companies, albeit with some new procedures in place,” Jallah noted.Bearing this in mind, our focus turned to two penny stocks from the healthcare space backed by Roth Capital. Along with the stamp of approval, the firm believes that both of these tickers trading for less than $5 per share are primed for a massive rally.Digging a bit deeper, we used TipRanks’ database to find out what makes both so compelling despite the risk involved.Seelos Therapeutics (SEEL)Primarily focused on neurological and psychiatric disorders, Seelos Therapeutics works to bring cutting-edge therapies to market. Currently going for $0.67 apiece, Roth Capital believes that its share price presents investors with an opportunity to get in on the action.Calling SEEL “substantially undervalued,” firm analyst Jonathan Aschoff points to two of the company's pivotal programs, SLS-002 (intranasal racemic ketamine), its treatment for acute suicidal ideation and behavior (ASIB) in patients with major depressive disorder (MDD), and SLS-005 (trehalose), its ALS treatment, as major upside drivers.SLS-002 is set to enter a proof-of-concept (POC) trial, with the FDA “eager for a useful anti-suicide drug.” Aschoff noted, “We firmly believe that, although it is formally called a POC trial, achievement of two endpoints, the primary endpoint of Montgomery-Åsberg depression rating scale (MADRS) and the key secondary endpoint of Sheehan-suicidality tracking scale clinically meaningful change measure (S-STS CMCM), will be enough to allow SEEL to file for approval of a ketamine importantly differentiated by its ability to reduce suicidal ideation.”Aschoff believes it’s likely that SEEL will have already kicked off the 120-patient randomized trial portion when it publishes data from 16 patients dosed with SLS-002. The analyst added, “We also believe that SEEL was given extremely helpful trial design guidance from the FDA due to the clearly evident observation that current national and global affairs are contributing to suicide more strongly now than perhaps ever.”As for SLS-005, the company recently got permission from the FDA to proceed with its registrational Phase 2b/3 ALS trial. Based on data from multiple preclinical studies, treatment with the therapy resulted in the preservation of motor neurons, motor function and prolonged survival.What’s more, SLS-005 has been granted Orphan Drug Designation (ODD) in the U.S. and E.U. for other indications such as Sanfilippo syndrome, spinocerebellar ataxia type 3 (SCA3) and oculopharyngeal muscular dystrophy (OPMD), as well as Fast Track designation for OPMD."We believe that a trial in SCA3 is more likely to come first [...] We anticipate SEEL's SCA3 trial to enroll about 150 patients and evaluate patients by SARA at six months, in which showing stability would be meaningful and showing improvement would be a home run," Aschoff wrote. To this end, Aschoff rates SEEL a Buy along with a $12 price target. This puts the upside potential at a massive 1,715%. (To watch Aschoff’s track record, click here)Turning now to the rest of the Street, 2 Buys and no Holds or Sells have been published in the last three months. Therefore, SEEL has a Moderate Buy consensus rating. With the average price target clocking in at $8, the upside potential lands at 1,111%. (See SEEL stock analysis on TipRanks)Acer Therapeutics (ACER)Developing therapies for rare and life-threatening diseases, Acer Therapeutics wants to address the unmet medical needs of patients. With several catalysts slated for the near-term, Roth Capital thinks its $2.50 share price reflects an attractive entry point.Analyst Jonathan Aschoff, who also covers SEEL for the firm, points out that during a recent meeting with management, the “overwhelmingly focus was on emetine, ACER-001 and Edsivo, and each of these programs are capable of providing at least one meaningful near-term investment catalyst.”Emetine, a potential COVID-19 treatment, is being developed as part of a collaboration with the National Center for Advancing Translational Sciences (NCATS), one of the National Institutes of Health (NIH). Speaking to the therapy’s potential, Aschoff notes that the candidate reactivates the cellular stress response, making it a strong antiviral with nanomolar potency about 50 times greater than remdesivir, Gilead’s COVID-19 treatment. The broad antiviral activity could also allow the drug to be used against future novel viruses, in the analyst’s opinion. ACER is pursuing BARDA and Gates Foundation funding for the program. While Aschoff acknowledges that the company could fund part of the clinical development itself, he argues the program is more likely to progress with external funding. The capital would allow ACER to submit an IND in 1H21 and initiate a Phase 2/3 trial later that year. As a response from BARDA is set to come in Q3 2020, the analyst sees a major possible catalyst.As for ACER-001, its fully taste-masked, immediate-release formulation of sodium phenylbutyrate (NaPB) developed using a microencapsulation process, Aschoff believes ACER is speaking to several larger pharmaceutical companies about partnership opportunities, with plenty of upside in store should an agreement be reached.“We highly favor ACER-001's edge over the competition, given Buphenyl's awful taste and smell and Ravicti's egregious pricing of about $900,000 per year. With ACER-001's taste masking and parity pricing to Buphenyl (about $350,000 per year), ACER-001 is a no brainer, in our view...We believe that FDA buy in on the food effect without requiring addition clinical work would be a meaningful stock catalyst,” the analyst commented.Additionally, Edsivo, ACER’s new chemical entity (NCE) designed for the treatment of vEDS, reflects a key point of strength, in Aschoff’s opinion. Ehlers-Danlos Syndrome (EDS) is a group of hereditary disorders of connective tissue. “We essentially view Edsivo as a call option, with significant share price upside if the FDA allows ACER to amend and refile its NDA after only having to include existing natural history data... Edsivo could generate meaningful U.S. revenue for ACER, about $350 million annually, if approved for vascular Ehlers-Danlos syndrome,” he explained.It should come as no surprise, then, that Aschoff stayed with the bulls. To this end, he left a Buy rating and $10 price target on the stock. Investors could be pocketing a gain of 300%, should this target be met in the twelve months ahead.Looking at the consensus breakdown, opinions are more varied. As 2 Buys and 3 Holds have been issued in the last three months, the word on the Street is that ACER is a Moderate Buy. At $10, the average price target matches Aschoff’s. (See ACER stock analysis on TipRanks)To find good ideas for penny 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.
The massive job reduction was the most eye-opening among several severe cost-cutting measures made by Disney, which has lost billions of dollars in potential revenue because of suspended operations at its amusement parks, live-production units, and cruise lines since COVID-19-imposed closures dating back to March.
“Tim has brought unparalleled innovation and focus to his role as CEO and demonstrated what it means to lead with values and integrity," Apple's board of directors said in a statement. "For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward.” Cook is in the ninth year of his 10-year grant from 2011.
On CNBC's "Fast Money," Tim Seymour said that AT&T Inc. (NYSE: T) has been a real underperformer in the post-COVID-19 rally. He has a long position in the name and he would stay long because of its high dividend yield.Mike Khouw would be a buyer of AT&T because the dividend has proven to be covered. He owns the stock and he thinks that it is currently at a price level where the risk-reward is a lot more favorable.Guy Adami thinks that Coca-Cola Co (NYSE: KO) could rally to $49. He would stay with the stock.Khouw said that Coca-Cola is not a growth stock, but it is probably a safe one. He thinks that the stock has been reasonably constructive and its dividend is supportive.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * 'Fast Money' Traders Weigh In On Verizon And NetApp * 'Fast Money' Traders Give Their Opinion On AT&T(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
On September 16, Snowflake (SNOW), a data storage and query company, did its much hyped IPO. And, no one was disappointed by the hype. The company is growing at a blistering pace and has high profile investors. These two key factors, along with a small amount of stock being issued, helped drive the price of the stock to nearly 3x the IPO price. Now, the stock is considered one of the richest companies trading on the stock market and some are saying to simply stay away. But, is there opportunity in a significantly rich stock, or should you wait to get into the stock once the market has settled down?Here are the key bullet points that you should consider when you think about Snowflake: * Snowflake, executing beautifully, is growing at blistering pace of about 120% annually. * High profile investors have helped to push up valuations. * Limited supply of stock issued may have contributed to sharp rise in price. * Long-term prospects are that the company will continue to grow however, the current valuation is unwarranted. * Pressure on the NASDAQ and other indices will weigh on stock price.The IPO price was a mere $120 the night before the issuing. It never even traded at that price but, instead jumped to above $200 to start, topped $300 and has since settled down.What’s with the growth rates?The company is growing, to say the least. They have an Annualized Run Rate (ARR) of between $480M - $500M and have added some 125% revenue growth to their books since February. These are huge numbers that may continue for a while. And, Snowflake has a retention rate of 158%, meaning that when a company uses its services it is more likely to stay with them and then add on services as time goes by. That is where the hype starts with Snowflake... but, it does not stop there.Granted, Snowflake is a company that is growing and expanding. However, despite the growth rates, the current market valuation for Snowflake is $72 billion whereas in a private offering by the company in February, Snowflake was valued at a mere $12 billion, a huge $60 billion gap. Not much has changed structurally with the company to warrant such a big increase. Even still, if the stock was priced at its IPO level, that would be closer to $30 billion and a lot closer to the reality of what the company could sustain as a valuation. So, there’s a lot baked into this stock price and buying now is high risk.Enter into the equation the world’s most renowned investor: Warren Buffett. The first thing to know about Mr. Buffett is that he has largely shrugged off tech stocks with the 80-something year old saying he basically does not understand tech. But, perhaps Mr. Buffett could not pass up the blistering growth rates because all of a sudden, however, he is in the stock at its IPO price with an agreed purchase of some 6 million shares. Getting a seal-of-approval from Mr. Buffett is usually good for about 8% - 10% bump in the stock price. But, the stock jumped from the $120 IPO price to over $300. There’s more at play than just Mr. Buffett’s involvement, despite how noteworthy this is.There was a limited number of shares issued at about 28 million total (excluding the 6 million issued to Mr. Buffett who famously loves to hold stock positions forever, with minor exceptions). Snowflake raised all of $3 billion in its stock offering. They are not short of cash sitting on some $1 billion. And, they have not mentioned in their S-1 filing what they plan on doing with the funds issued.In fact, just about a year ago, the CEO at the time said that there was no reason why Snowflake would go public. He was fired shortly afterwards and the new CEO, with a knack for taking companies public in short order, was hired. It is almost as if the only reason the company went public was simply to go public.There is a time lock on the issued IPO shares so there will not be a great deal of selling in the company’s stock by these investors. This is going to add to the stock’s price remaining lofty for some time. But, there are external factors that may weigh on the stock, such as the selling in the broader market from both election uncertainty and the economic uncertainty due to the COVID-19 pandemic.Until the election in November gets out of the way, and investors have an idea as to what Washington is going to look like - and what the economic relief package might look like because of that - the markets have been selling more and more lately. But, after this key milestone is passed, it is possible that there will be more sustainable buying in the markets to support the overall market.Something else to consider is competition. Amazon, Microsoft and Google are all direct competitors to Snowflake. What is interesting about Snowflake is that it is both a data storage and query company. But, Snowflake has no infrastructure for data storage. The company leases that out to, of all companies, Amazon, Microsoft and Google, the company’s direct competitors. But, what this does do is allow itself to focus on the more elaborate service it provides, data query. This is the revenue behemoth that is pushing the growth rates for the company. And, with the retention rate of 158%, customers are not only signing on, but adding more and more service (keeping cost of service sold lower). This is helping the bottom line for the company.In the meantime, I would love to own this stock. I just would not be interested in owning this stock at this price. If the market were to sell-off over the next few weeks into the election, and Snowflake’s stock did the same, then this could be a good buying opportunity. But, Snowflake’s stock may stay elevated for a long time as many investors will not be able to sell their shares until the lock-up period expires. When looking at Wall Street’s stance, only one analyst has posted a recent review. Summit analyst Srini Nandury rates SNOW a Sell, and his $175 price target implies a 32% downside from current levels. (See Snowflake 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 content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. The author has no position in the stock mentioned.