Nov.11 -- Lyft Co-Founder and President John Zimmer discusses profitability, the potential for a vaccine, delivery business and Prop 22. He speaks with Emily Chang on "Bloomberg Technology."
Nov.11 -- Lyft Co-Founder and President John Zimmer discusses profitability, the potential for a vaccine, delivery business and Prop 22. He speaks with Emily Chang on "Bloomberg Technology."
The "Mad Money" host made the bullish case this week for Facebook, Apple, Amazon, Netflix and Google parent Alphabet, even as the "smart money" keeps pushing the idea that it's time to move out of Big Tech and into value plays.
Dividend stocks are the Swiss army knives of the stock market.When dividend stocks go up, you make money. When they don’t go up — you still make money (from the dividend). Heck, even when a dividend stock goes down in price, it’s not all bad news, because the dividend yield (the absolute dividend amount, divided by the stock price) gets richer the more the stock falls in price.Knowing all this, wouldn’t you like to find great dividend stocks? Of course you would. Raymond James analysts have chimed in – and they are recommending two high-yield dividend stocks for investors looking to find protection for their portfolio. These are stocks with a specific set of clear attributes: a dividend yield of 10% and Strong Buy ratings.Kimbell Royalty Partners (KRP)We’ll start with Kimbell Royalty Partners, a land investment company operating in some of the US’ major oil and gas producing regions: the Bakken of North Dakota, Pennsylvania’s Appalachian region, the Colorado Rockies, and several formations in Texas. Kimbell owns mineral rights in more than 13 million acres across these regions, and collects royalties from over 95,000 active wells. Over 40,000 of those wells are in the Permian Basin of Texas, the famous oil formation that has, in the past decade, helped turn the US from a net importer of hydrocarbons to a net exporter.The coronavirus crisis hit Kimbell directly in the pocketbook, knocking down share prices and earnings as economic restrictions, social lockdowns, and the economic downturn all struck at production and demand. The situation has only begun to revive, with the Q3 revenues growing 44% sequentially to reach $24.3 million.Kimbell has long been a reliable dividend payer, with a twist. Where most dividend stocks keep their payouts stable, typically making just adjustment in a year, Kimbell has a history of reevaluating its dividend payment every quarter. The result is a dividend that is rarely predictable – but is always affordable for the company. The last declaration, for the third quarter, was 19 cents per common share, or up 46% from the previous quarter. At that rate, the dividend yields ~10%,Covering the stock for Raymond James, analyst John Freeman noted, “Despite a strong quarterly performance and a nearly 50% distribution raise in 3Q, the market continues to under appreciate the unique value proposition of Kimbell's assets, in our view. Kimbell has a best-in-class 13% base decline, exposure to every major basin and commodity, as well as a very manageable leverage profile…”Regarding the possible anti-hydrocarbon stance of a Biden Administration, Freeman sees little reason for worry, saying, “Investors concerned about a potential Biden presidency (which appears increasingly likely) have little to fear in KRP. The company has less than ~2% of acreage on federal lands, meaning a frac ban on those properties would not have a material impact on KRP's business and might actually help them if it improved the overall supply impact."In line with these comments, Freeman rates KRP a Strong Buy, and his $9 price target implies it has room for 25% growth going forward. (To watch Freeman’s track record, click here)Wall Street appears to agree with Freeman, and the analyst consensus view is also a Strong Buy, based on 5 unanimous positive reviews. This stock is priced at $7.21, and its $11 average target is even more bullish than Freemans, suggesting a one-year upside of ~52%. (See KRP stock analysis on TipRanks)NexPoint Real Estate Finance (NREF)NexPoint inhabits the real estate trust niche, investing in mortgage loans on rental units, both single- and multi-family occupancy, along with self-storage units and office spaces. The company operates in the US, across major metropolitan hubs.NexPoint held its IPO in February this year, just before the coronavirus pandemic inspired an economic crisis. The offering saw 5 million shares sell, and brought in some $95 million in capital. Since then, the shares are down 13%. Earnings, however, have posted gains in each full quarter that the company has reported as a public entity, coming in at 37 cents per share in Q2 and 52 cents in Q3. The Q3 number was 30% above the forecast.The dividend here is also solid. NexPoint started out with a 22-cent per share payment in Q1, and raised it in Q2 to its current level of 40 cents per common share. This annualizes to $1.60, making the yield an impressive ~10%.Stephan Laws, 5-star analyst with Raymond James, is impressed with what he sees here. Laws writes of NexPoint, “Recent investments should drive significant core earnings growth, which is reflected in the increased 4Q guidance range of $0.49-0.53 per share (up from $0.46-0.50 per share). The guidance incorporates the full quarter impact of the new 3Q investments as well as new mezz investments made in October. We are increasing our 4Q and 2021 estimates, and we have increased confidence in our forecast for a 1Q21 dividend increase, which we now forecast at $0.45 per share…”Following these sentiments, Laws puts a Strong Buy rating on NREF. His $18 price target suggest the stock has a 9% upside potential for the year ahead. (To watch Laws’ track record, click here)With 2 recent Buy reviews, the analyst consensus on NREF shares is a Moderate Buy. The stock’s $18 average price target matches Laws’, implying 9% growth. (See NREF stock analysis on TipRanks)To find good ideas for dividend 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.
Think carefully about your choice so you can actually pay off your student debt.
Airlines stocks have shown signs of a turnaround over the last month. Here are three to put on the radar.
Nio stock upgraded at Goldman Sachs as Chinese electric-vehicle maker's battery-swap program gives it an edge.
What kind of stocks stir up controversy like no other? Penny stocks. These tickers trading for less than $5 per share have earned a reputation as some of the most divisive names on Wall Street, with these plays either met with open arms or given the cold shoulder.It’s understandable why some investors are wary. Those opposed are quick to point out that there could be a very real reason these stocks are changing hands for pocket change, with the low share prices often masking obstacles like weak fundamentals or troubling headwinds. That said, others are drawn in by the sheer growth potential of penny stocks. The fact is that even minor share price appreciation can mean huge percentage gains, and thus, serious returns. What’s more, your money goes further with these bargain names.No matter which side you take, one thing is certain, due diligence is necessary before making any investment decisions. That’s where the experts come in, namely the analysts at Roth Capital. These pros bring experience and in-depth knowledge to the table.With this in mind, our focus turned to two penny stocks that have received a thumbs up from Roth Capital analysts. Running the tickers through TipRanks’ database, both have been cheered by the rest of the Street as well, as they boast a “Strong Buy” analyst consensus. Not to mention substantial upside potential is on the table.Cellectar Biosciences (CLRB)Leveraging its patented phospholipid drug conjugates (PDCs) delivery platform, Cellectar Biosciences develops cutting-edge treatments for cancer. Based on the potential of its drug candidate, CLR 131, and its $1.24 share price, Roth Capital thinks that now is the time to get in on the action.Representing the firm, analyst Jonathan Aschoff tells clients that he is optimistic about CLR 131, which is a small-molecule, targeted PDC designed to deliver cytotoxic radiation directly and selectively to cancer cells, in the lymphoplasmacytic lymphoma (LPL)/Waldenstrom's macroglobulinemia (WM) indications. According to Aschoff, following its Type B guidance meeting with the FDA, “CLRB is prepared to initiate its first pivotal CLR 131 trial in LPL/WM after achieving a 100% ORR and 75% major response rate in four patients.” He points out that although CLRB just reported promising results in multiple myeloma (MM) (40% ORR in triple class refractory (TCR) patients at total body doses of at least 60mCi), LPL/WM was selected for the initial pivotal trial based on the very strong initial results and the lower competition for patients.“We view this as a prudent decision because NCCN compedia listing in MM is a mere peer-reviewed publication away, if first approved in LPL/WM. We also note that CLRB has steadily improved its dosing of CLR 131, essentially fractionating the doses so that higher total body doses are well tolerated,” Aschoff further explained. Adding to the good news, the therapy generated activity in preliminary Phase 1 unresectable brain tumors. Aschoff added, “Disease control was shown in two heavily pretreated patients with ependymomas, showing the drug's ability to cross the blood brain barrier, and all doses through 60 mCi/m2 have exhibited a favorable safety profile.”To this end, Aschoff rates CLRB a Buy along with a $10 price target. Investors could be pocketing a gain of 713%, should this target be met in the twelve months ahead. (To watch Aschoff’s track record, click here)Are other analysts in agreement? They are. 5 Buys and no Holds or Sells have been issued in the last three months. So, the message is clear: CLRB is a Strong Buy. Given the $5.48 average price target, shares could soar 345% from current levels. (See CLRB stock analysis on TipRanks)Applied Genetic Technologies (AGTC)With vast gene therapy experience, Applied Genetic Technologies designs and constructs all critical gene therapy elements and brings them together to develop successful treatments for patients. Currently going for $4.50 apiece, Roth Capital believes this stock’s long-term growth narrative is strong.Firm analyst Zegbeh Jallah points out that recently released data for its XLRP gene therapy program, which is expected to enter pivotal studies in Q1 2021, reaffirmed his bullish thesis. “Despite the market not fully appreciating the data given how the stock traded, we continue to believe that the results suggest that AGTC could have a best-in-class therapy, which is supportive of the planned pivotal efforts,” he explained.Providing an update on the results of the Phase 1/2 XLRP study, using the FDA's criteria, AGTC evaluated responses at 12 months in the lower dose groups (2 and 4), and 6 months in the higher dose groups (5 and 6). According to Jallah, “initial responses were observed in dose Groups 2, 3, 4, 5 and 6, with impressive response durability even at 12 months.”On top of this, at 6 months, the dose used in Group 5 resulted in a 43% response rate or a 57% response rate if excluding a patient not meeting the enrollment criteria. In Group 6, a response rate of 50% was observed, or 100% excluding patients not meeting the enrollment criteria.Jallah added, “All measurements were obtained in the 36 perimetry grid, which we believe should make it easier to preselect loci likely to respond. Although BCVA is not the primary endpoint, BCVA improvements, which can capture changes in the central region, were maintained at 12 months.”Even though some investors have expressed concern about Meira’s competing therapy, Jallah believes AGTC’s technology could have a leg up. “Overall, we believe that the data from both companies is strongly indicative of the efficacy potential of gene therapy for inherited retinal disease, and although differences in the study design makes direct comparisons difficult, we believe that AGTC could have a competitive advantage heading into pivotal studies,” he commented.In line with his optimistic approach, Jallah reiterated a Buy rating and $30 price target, indicating 568% upside potential. (To watch Jallah’s track record, click here)All in all, other analysts echo Jallah’s sentiment. 5 Buys and zero Holds or Sells add up to a Strong Buy consensus rating. The average price target of $18.25 is less aggressive than Jallah’s but still leaves room for upside potential of 306%. (See AGTC 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.
Tesla’s valuation has gotten “out of control,” says one strategist.
Nio and Xpeng reported a jump in November sales, and Goldman Sachs hiking its price targets on Nio and Li Auto.
(Bloomberg) -- Biotech’s biggest short bet, vaccine developer Moderna Inc., broke another intraday record for a fourth straight session Tuesday, with one Wall Street strategist comparing the biotech’s volatile trading to bitcoin’s wild swings.Moderna jumped as much as 17% shortly after the market opened Tuesday before nose-diving 10% in the afternoon session. The stock had surged 55% and added more than $21 billion in market value in the prior three trading days after the company revealed positive data and plans to file for approval of its experimental Covid-19 vaccine.“Vaccine stocks trading more like bitcoin than biotech,” Jared Holz, a Jefferies health-care equity strategist wrote in a note to clients. The “unprecedented” moves are likely driven by retail investors and potentially quant models rather than institutional investors, he said as the stock blew past the 12-month price target of all but one analyst.S3 Partners data show Moderna’s short interest is $3.55 billion with 23 million shares shorted. That may lead some to blame part of the gains on short covering, where bearish bettors buy back borrowed stock to close their positions. Holz says that short interest levels are “not nearly high enough to be generating this type of trading action” after Moderna’s stock added at least 10% a day over the past few trading sessions and more then doubled in November.Ihor Dusaniwsky, S3’s managing director of predictive analytics, agreed that short covering wasn’t driving the move with trading volume far exceeding short-side activity. Over the past 30 days, 4.33 million shares worth $302 million were covered, he said. Short-sellers are down $3.09 billion this year in net-of-financing mark-to-market losses with $2.03 billion of that coming in November, he said.‘Vast Majority’The leading shots, including Moderna’s and one from Pfizer Inc. and partner BioNTech SE, use a technology known as messenger RNA. AstraZeneca Plc’s experimental vaccine uses a harmless virus to generate an immune response.“Investors now believe mRNA vaccines will take the vast majority of the U.S. market given growing investor concerns around adenovirus vaccine and in particular the recent AstraZeneca data,” Morgan Stanley analyst Matthew Harrison wrote in research note. Investors may be expecting as much as $15 billion in sales from the Cambridge, Massachusetts-based biotech’s Covid-19 inoculations over the next two years, but its the revenue after 2022 that is sparking the most debate, he said.Bears are expecting multiple vaccines and cheaper pricing while bulls expect higher pricing to prevail after the pandemic winds down. Harrison, who has an overweight rating on Moderna, was bullish on the opportunity for booster shots and the rest of Moderna’s pipeline, though his price target remains $100.The stock dropped to a session low on Tuesday while management was presenting at the Evercore ISI Annual HealthCONx Conference.Earlier Tuesday, European regulators said they would finish assessing Moderna’s shot for a conditional authorization by Jan. 12 while Pfizer Inc. and partner BioNTech SE should get a decision on their shot by Dec. 29.(Updates to add share reversal)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.
Investors are crowding into the stock market right now, and they aren't seeing the big signals that indicate they are about to get caught up in a rough period of selling, says our call of the day from contrarian investor Steven Jon Kaplan.
The Dow Jones backed off highs Tuesday after topping the 30,000 level again, but Apple stock stayed strong after a breakout over a trend line.
The House will vote this week on the Holding Foreign Companies Accountable Act. Will it lead to the delisting of Alibaba stock and other China stocks?
Shares of Nio Inc. and XPeng Inc. reversed course to trade sharply lower, again, even as the China-based electric vehicle makers reported strong growth in November deliveries.
Zoom is getting pounded after reporting strong quarterly earnings. What does it mean for the pandemic playbook? Let's look.
The feasibility of President-elect Joe Biden’s bold plan for sweeping tax increases on the wealthy has been vastly diminished in the absence of big Democratic wins in the U.S. House of Representatives and Senate. Biden’s focus on raising income taxes on the top 1% of earners, for instance, could appeal to some Republicans nodding toward a more populist agenda and get pushed through. “Since it wasn’t a blue wave, it’s much less likely we’ll see sweeping reform,” says Ali Hutchinson, managing director at Brown Brothers Harriman.
If you wait until you are 70 to take your Social Security benefit, you will receive monthly payments that are 32% higher than the benefits you would have received at age 66, which is the retirement age for many Americans. Retirees who wait to claim can get hundreds of dollars more each month than those who take benefits early. About half of Americans take Social Security before full retirement age, often because they can't afford not to.
It's been an impressive November for S&P 500 stocks. And the month served up another reminder of the power in picking top stocks.
With a short history of less than 6 months on the public market, Nikola (NKLA) stock is already an old hand at the volatility game. There have already been many ups and downs, although the electric truck maker’s latest move was a decisively negative one; Shares cratered by 27% on Monday following the announcement that Nikola and General Motors’ proposed partnership was significantly scaled back.Whereas previously talks had centered on GM taking $2 billion’s worth of Nikola stock in return to throwing its considerable weight behind the development of Nikola’s pickup truck, the Badger, the partnership now amounts to not much more than a supply deal. The two companies signed a MoU (memorandum of understanding) in which Nikola will buy GM’s Hydrotec fuel cells for its FCEV trucks on a cost-plus basis.It all seems a far cry from early September when the prospective parentship appeared almost a done deal. Since then, however, Nikola’s founder Trevor Milton resigned amidst allegations of fraud and now Nikola has completely abandoned the Badger initiative to focus on the development of its Class 7 and Class 8 semi-trucks.Deutsche Bank analyst Emmanuel Rosner views the development as “particularly negative for Nikola stock,” while the revised agreement “makes it clear that after months of additional due diligence, GM is not willing to any risk on Nikola.”“By no longer accepting NKLA equity as payment, but instead demanding capital expenditures upfront and regular payments for fuel-cell deliveries, GM essentially no longer wants to be tied to Nikola´s longer term outlook,” the analyst further said.The timing of the announcement coincides with another event which could put NKLA stock under additional near-term pressure. Today, December 1, marks the lock up expiry date when Nikola insiders are eligible to sell 161 million shares previously kept out of circulation. Of these, 92.2 million belong to Milton.Looking beyond the near-term implications, Rosner believes “Nikola's eventual success (or lack thereof) will depend on its ability to build the right partnerships and develop right economics for its hydrogen trucks and network.”For now, due to “large technical selling pressure and execution risk,” Rosner stays on the sidelines with a Hold rating. The analyst has no fixed price target in mind. (To watch Rosner’s track record, click here)What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 3 Buys, 2 Holds and 1 Sell add up to a Moderate Buy consensus. In addition, the $29 average price target indicates 42% upside potential from current levels. (See NKLA 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 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.
Financial advisors need to help these clients with their retirement planning. A job loss for a person nearing retirement may result in cuts to lifestyle expenses or downsizing the dream for the golden years.
Among the Dow Jones stocks, Apple and Microsoft are among the top stocks to buy and watch in December 2020.