Michigan Gov. Gretchen Whitmer made a brief statement Thursday after state and federal charges were announced against several people who allegedly plotted to kidnap her. Photo: Fox
Michigan Gov. Gretchen Whitmer made a brief statement Thursday after state and federal charges were announced against several people who allegedly plotted to kidnap her. Photo: Fox
Ray Dalio, founder of the massive Bridgewater Associates investment firm, has been railing against cash all year long, and he doubled down on his stance on Wednesday, telling CNBC that, even amid all the stock market turmoil, it's "not a safe investment."
After a volatile September, the roller coaster hasn’t ended in October. We had a pleasant surprise for investors, when S&P 500 climbed back above 3,400 to start the month. However, markets didn’t like President Trump’s COVID diagnosis, and the resulting drop. The President is out of the hospital, but now the White House and Congressional Democrats are unable to reach agreement on an economic stimulus package. The combination of good news and bad news makes the markets an intriguing mix of risk and reward. Weighing in on current market conditions, Raymond James strategist Tavis C. McCourt noted: "Although there is a lot of noise in the market, fiscal relief likely trumps other variables as a $1.5+ trillion fiscal relief package would likely secure an improving earnings trend through next summer (vaccine), would limit the need for increased state/local taxes, and we believe would be a very good setup for outperformance of economically cyclical companies/industries. Without fiscal relief, the chances of this economic recovery stalling increases with relative performance biased towards "megacap tech" and interest rate sensitives/defensives."With so much going on, investors will be looking at the analysts’ reviews to make sense of the markets and to find out which stocks are showing the highest return potential. With this in mind, Raymond James analysts have tapped several companies that could double their value in the year ahead. Using the latest TipRanks data, we’ve pulled up the details on these three stock picks. The picture emerges of under-the-radar stocks, featuring low points of entry and – in Raymond James’ view – upsides starting at 100%.Mesa Air Group (MESA)The first stock on our list, Mesa Air, is a holding company and an operator of regional feeder airlines. These are the smaller airlines, operating shorter-ranged aircraft and servicing lower-trafficked regions and airports, that connect passengers in low-priority regions with major airlines’ large hubs. Mesa two main airlines, United Express and American Eagle, feed into United and American Airlines, respectively.During 1H20, when most airlines faced the massive financial headwinds of the coronavirus, customers’ fear of travel, and government-imposed economic and travel restrictions, Mesa was conspicuous for remaining profitable. In Q1, the per-share earnings came in at 5 cents; by Q2, that number had doubled to 10 cents. The Q2 number was also up 11% year-over-year. The gains in earnings came even as revenues slid from $180 million in Q1 to $73 million in Q2.Revenues, at the top line, are an easy metric to see, and that big revenue slide helps explain Mesa’s drop in share price. The drop in price, however, presents investors with an opportunity, according to Raymond James analyst and airline expert, Savanthi Syth.“Mesa was the only U.S. airline to report a profit with F3Q20 EPS of $0.10… While cargo demand has shined throughout the current crisis, it is unlikely to be material for Mesa in the near-/medium-term… we continue to believe Mesa will remain an important partner given its low cost structure with the opportunity to take on additional flying from struggling smaller competitors. As such, we still see compelling risk-reward,” Syth opined.These comments support Syth’s Outperform (i.e. Buy) rating, and her $6.50 price target suggests that the stock has room for 111% growth in the coming year. (To watch Syth’s track record, click here)Turning now to the rest of the Street, 3 Buys and no Holds or Sells have been published in the last three months. Therefore, MESA has a Strong Buy consensus rating. With the average price target clocking in at $6.17, the upside potential lands at 101%. (See MESA stock analysis on TipRanks). Newmark Group (NMRK)A public company for just the last three years, Newmark is a major name in the commercial real estate world. The company is an advisory firm, offering high-end customers a full range of services in commercial real estate, including agency leasing, property management and valuation, investment sales, debt and financing sales, and loan servicing. Newmark bills itself as an all-in-one agency for commercial clients, and boasts of property management services for than 400 million leasable square feet of property around the world.Newmark shows a consistent pattern to its earnings, with low results in the first half and high results in the second half. Keeping that in mind, the 1H20 results, did underperform expectation. At 9 cents EPS in Q1 and 10 cents in Q2, EPS missed the forecasts. Still, the company showed a net profit in the first half – and the outlook for Q3 shows EPS climbing back close to historical levels.Share performance, however, has been poor. The stock fell sharply in the mid-winter swoon, caused by the coronavirus economic disruptions and turndown. However, 5-star analyst Patrick O’Shaughnessy, covering Newmark for Raymond James, believes this company is undervalued. “…there are still plenty of unknowns in the CRE market today, particularly within capital markets and leasing activity; however, we believe this heavily discounted valuation is not warranted. Moreover, we believe that the present value of the Nasdaq earn-out, which represents more than half of Newmark's total market cap, is underappreciated by investors, as evidenced by the relatively low correlation between Nasdaq and Newmark," O’Shaughnessy commented. The analyst continued, “Newmark's core franchise is currently trading at ~3.4x our 2020E core EBITDA and ~2.1x our 2021E core EBITDA. This is meaningfully below Newmark's peers, which trade at ~10x and 7x our 2020E and 2021E core EBITDA, respectively. While we do recognize that Newmark's business model does maintain a higher split of capital markets and leasing revenues than its larger peers, we believe that this 65-70% core valuation discount is too large.”Following from those comments, O’Shaughnessy gives Newmark a $10 price target, suggesting a 102% upside, and an Outperform (i.e. Buy) rating. (To watch O’Shaughnessy’s track record, click here)Overall, Newmark has a Moderate Buy rating from the analyst consensus, based on a 1 to 1 split between Buy and Hold reviews. The stock has an average price target of $8, giving it a 62% upside potential from the current share price of $4.93. (See NMRK stock analysis on TipRanks)Echostar Corporation (SATS)Echostar is a major operator or satellite communication infrastructure, providing satcom services to media, private enterprise, and US government and military entities. The company’s subsidiary, Hughes, uses the satellite network to provide broadband services, and delivers network solutions in over 100 countries around the world.Echostar had been feeling financial pain even before the COVID-19 pandemic. The company’s EPS was negative as far back as Q2 2019, and the losses grew worse sequentially through 1Q20. While the second quarter of this year also reported a loss, the sequential improvement was substantial – from a 56-cent loss in Q1 to a 12-cent loss in Q2. That improvement comes along with a generalized surge in networking use.Getting into details, SATS saw $459 million in total Q2 revenues, beating estimates by 5.2%. The second quarter also saw an increase in the subscriber base of 26,000. Echostar now boasts of 1.54 million total subscribers.Raymond James’ Ric Prentiss points out several of Echostar’s major advantages, writing, “We expect the Hughes consumer business (71% of Hughes revenues) to remain resilient in the U.S. and strong in LatAm during the COVID-19 crisis, and Enterprise sales to recover. And of course, the balance sheet is ready with plenty of chips on the table (~$2.5B cash and net debt of -$67M), giving the company strategic optionality in a time when other companies, especially higher levered satellite companies, are cash starved with significant maturities or capex programs.” In line with those comments, Prentiss rates this stock a Strong Buy, and his price target of $57 implies room for an upside of 127% in the next 12 months. Prentiss’ is the only recent review on record for SATS, which is currently trading for $25.10. (To watch Prentiss’ track record, click here)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.
The president has halted talks but is giving mixed messages. When might you get more cash?
If you’re married, you’ll often do better with a joint claiming strategy for Social Security benefits. As I wrote last time, that usually works best if the two spouses are close in age and if one spouse earned considerably more than the other did during their work lives. Divorced and widowed spouses can collect spousal or survivors’ benefits—benefits based on a spouse’s lifetime earnings—with some restrictions.
The Democratic presidential nominee has some plausible ideas for raising business taxes, but a new "minimum" corporate tax is not one of them.
Analyst Katy Huberty raised her fiscal 2021 revenue and profit estimates by 2%. She now sees fiscal 2021 profits of $4.07 a share, which is 20 cents above the Street consensus.
(Bloomberg) -- The stock market faces the possibility of significant declines ahead of the U.S. election as economic and political unpredictability dumbfound strategists, according to Goldman Sachs Group Inc.’s Abby Joseph Cohen.“I’m quite concerned that there could be considerable downside,” depending on “factors that we can’t fit easily into our models,” the senior investment strategist said in an interview on Bloomberg TV. “This includes: What will the Congress do? What will the President say? And of course, the election outcome.”Cohen, who in the 1990s was the most famous equity strategist in America, pointed to “wide gaps” in valuations within the stock market, with the recovery rally since March having been largely driven by a handful of mega-cap technology companies. This, she warned, can make the market more vulnerable to disappointments. Only this week, markets slid after President Donald Trump announced he was halting stimulus talks until after next month’s election.“Those of us who have lived our professional lives really focusing in on the math, I think should feel very humble right now because what we recognize is that the models may not be able to properly reflect all of the volatility not just in the markets, but in the economy, in policy and of course in investor sentiment,” Cohen said.Goldman’s house view is that the S&P 500 Index is currently “modestly” undervalued based on expectations of corporate profit growth and accommodative U.S. Federal Reserve policy actions, the strategist said. She cautioned that “intense” volatility has been rising ahead of the election and all eyes are currently on the fiscal stimulus negotiations.A “blue wave” of wins for Joe Biden’s Democrats could bring more certainty to the government’s fiscal actions, according to Cohen. Investors are now viewing the possibility of a Democratic victory as positive for the longer-term outlook on corporate profits and economic growth in 2021 and beyond, she said.‘Blue Wave’“What we’re seeing from investors over the last several days is that a ‘blue wave’ might not be such a bad thing because it would give us more certainty with regard to policy, particularly with regard to the use of fiscal policy to help our economy at this point,” the strategist said.She echoed the comments of Fed Chair Jerome Powell that more fiscal support is needed to sustain the economic recovery.Cohen said that based on her conversations with investors, market participants are uncertain what Trump’s plans would be for the second term, adding that there’s “disappointment” on infrastructure policy and concern about possible environmental and healthcare actions.U.S. stocks rose on Thursday after Trump advocated a piecemeal approach in a barrage of overnight tweets, and House Speaker Nancy Pelosi signaled openness to a standalone airline-relief bill.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.
A victory by U.S. President Donald Trump in the Nov. 3 election would continue his administration's four-year deregulatory streak, which has delivered at least $40 billion in gains to banks and other financial firms, according to industry estimates. Here are some more key financial rule changes that policy experts said they would expect if the Republican incumbent wins a second term in the White House. Trump's administration could push ahead with its ambitious overhaul of the housing finance market.
Americans may not be optimistic about where things are headed in the coming months but they suggest they might be willing to put some additional money towards improving things.
The billionaire investing guru has shared these money tips for the coronavirus era.
Moderna Inc (NASDAQ: MRNA), which could potentially obtain emergency use authorization for its investigational coronavirus vaccine candidate before the year is out, said it will not enforce patents related to its COVID-19 vaccine during the pandemic.What Happened: The Cambridge, Massachusetts-based company said in a Thursday statement that it will not enforce its COVID-19-related patents against others working on vaccines to combat the virus.To eliminate intellectual property barriers to vaccine development during the pandemic, Moderna said it is willing to license its IP for COVID-19 vaccines by request for the post-pandemic period. The company said it feels obliged to use its resources to bring the pandemic to an end as quickly as possible."Moderna is proud that its mRNA technology is poised to be used to help end the current pandemic," the company said in the statement.Related Link: The Week Ahead In Biotech: Avenue's FDA Decision, Alkermes Adcom Meeting, Aziyo Biologics IPO Why It's Important: Moderna's decision regarding patent non-enforcement goes against the industry norms of innovators fighting tooth-and-nail to protect and safeguard their patents so they can enjoy the associated extended period of exclusivity and profits. Other vaccine developers such as the Pfizer Inc. (NYSE: PFE)-BioNTech SE - ADR (NASDAQ: BNTX) combine are also developing an mRNA vaccine against SARS-CoV-2.Moderna Snags DARPA Funding: Separately, Moderna announced an agreement for a commitment of up to $56 million from the Defense Advanced Research Projects Agency to fund development of a mobile manufacturing protype that leverages existing manufacturing technology that's capable of rapidly producing vaccines and therapeutics.The company also said in a separate release it has regained full rights to the respiratory syncytial virus vaccine, codenamed mRNA-1172, from Merck & Co., Inc. (NYSE: MRK).The vaccine uses a Merck lipid nanoparticle for delivery and entered Phase 1 development in 2019. The agreement provides for Merck completing the Phase 1 study and transitioning the program to Moderna.MRNA Price Action: Moderna shares were trading slightly positive at $72.38 at the time of publication Thursday. Related Link: Attention Biotech Investors: Mark Your Calendar For October PDUFA Dates See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * FDA's COVID-19 Vaccine Guidance Shows 'Substantial' Obligations For Developers: Analyst * Pfizer-BioNTech Establish Lead In Coronavirus Vaccine Race, Kickstarts Regulatory Filing Process In Europe(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Trump administration has blacklisted virtually all of Iran’s financial sector, dealing another blow to an economy that is already reeling under U.S. sanctions. The move will deepen tensions with European nations and others over Iran. Thursday's move hits 18 Iranian banks that had thus far escaped the bulk of re-imposed U.S. sanctions and, more importantly, subjects foreign, non-Iranian financial institutions to penalties for doing business with them.
Once again, volatility is the name of the game. Dramatic headlines involving mixed economic data, President Trump’s COVID-19 hospitalization and the reversal of his previous decision to halt talks regarding the next fiscal stimulus bill have been met with equally dramatic market swings. Since the month kicked off, stocks have been violently jumping between the red and the green.Further complicating matters, the tight race to the White House and new lockdowns in parts of the U.S. are only adding more uncertainty to the mix.All of this is enough to make even Wall Street veterans nervous. So, in times like these, where is an investor to turn? To the analysts who get it right time and time again.Tracking the number of successful ratings and average return per rating for thousands of analysts, TipRanks has identified the best stock pickers on the Street. With this in mind, we took a closer look at two stock picks from the platform’s number one and four rated analysts. Here’s what we found out.nCino (NCNO)As one of the leading multi-tenant SaaS platforms, nCino digitizes and automates the workflows of banks. Following a solid recent showing from the company, TipRanks’ best-performing analyst is pounding the table.5-star analyst Brent Bracelin, of Piper Sandler, was impressed by the company’s second-quarter performance. In the quarter, total revenue hit $48.8 million, representing 52% year-over-year growth and beating the Street’s estimate by $3.6 million. Additionally, subscription revenue of $39.3 million was up 70% year-over-year, compared to a 64% gain in the previous quarter.According to management, Paycheck Protection Program (PPP) activations drove the strong subscription result, with it contributing $3 million to subscription revenue in the quarter. 32 financial institutions purchased seats to manage PPP, including 10 new customers, two with over $25 billion in assets and an expansion within a top 10 U.S. bank.Bracelin believes these results speak to NCNO’s standing in the space. “We view NCNO as a vertical SaaS pure-play well positioned to sustain durable growth, leveraging cloud and AI technologies to modernize the financial services industry,” he explained.That said, NCNO still has plenty of room to grow, in Bracelin’s opinion. “The digital capabilities inherent within the nCino platform aim to improve lending workflows across a potential 28,000 global financial institutions. Across the $63 billion global IT spend, nCino’s current product portfolio stands at roughly $10 billion today... it is just scratching the surface of a large opportunity with 1% penetration,” the analyst commented.On top of the opportunity in the commercial lending space, Bracelin sees “several product levers that could emerge to sustain the company’s high growth over the long-term.” These include broader retail adoption (33 customers using both commercial and retail loan origination), international expansion (8% of revenue) and proliferation of the analytics portfolio: nIQ (part of Visible Equity acquisition in FY20).Everything that NCNO has going for it convinced Bracelin to reiterate his Overweight (i.e. Buy) rating. Along with the call, he continues to attach a $92 price target, suggesting 21% upside potential. (To watch Bracelin’s track record, click here)Looking at the consensus breakdown, 5 Buys and 2 Holds have been issued in the last three months. Therefore, NCNO gets a Moderate Buy consensus rating. Based on the $93.60 average price target, shares could rise 23% in the next year. (See NCNO stock analysis on TipRanks)Medallia (MDLA)As for Wall Street’s fourth-best stock picker, Oppenheimer analyst Brian Schwartz’s focus lands squarely on Medallia, a company that provides experience management solutions focused on customer, employee, product and business experience. With it standing out as the pioneer of the experience management movement, this pro thinks its long-term growth narrative is strong.“As we continue struggling to find ideas with SaaS stocks still looking fully-valued from year-to-date price/performance, we think MDLA offers an attractive entry point as we remain confident in the growth story and that Medallia will remain a leader in the emerging Experience Management category,” Schwartz wrote.After the company strengthened the platform through tech acquisitions, management now wants to slow down M&A to focus on organic growth, and achieve the revenue and operational synergies of the recent M&A period. Since May 2019, MDLA has added nine companies, as well as roughly $18 million to estimated FY2021 revenue.Currently, Wall Street’s estimate for FY2021 subscription revenue assumes there will be less new subscription revenue added than in 2019, despite the business operating at 117%-plus net retention, acquisition revenues, and with its sales and partner capacity scaling. “We can only deduce that the consensus is overly conservative,” Schwartz noted.With the business fundamentals improving and low expectations, Schwartz calls MDLA an “attractive idea.” He added, “We see low estimate risks and good valuation support, and believe that continuing fundamentals upside driven by a macro recovery can reignite an acceleration story in 2021 and trigger better investor sentiment on the name.”It should come as no surprise, then, that Schwartz stayed with the bulls. In addition to an Outperform (i.e. Buy) rating, he left a $40 price target on the stock. Investors could be pocketing a gain of 32%, should this target be met in the twelve months ahead. (To watch Schwartz’s track record, click here)Turning to the rest of the Street, the bulls have it on this one. With 8 Buys and 1 Hold assigned in the last three months, the word on the Street is that MDLA is a Strong Buy. At $39.44, the average price target implies 30.5% upside potential. (See MDLA 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.
IBM is slimming down. CEO Arvind Krishna talks with Yahoo Finance about one of his first big moves as CEO.
Volkswagen AG, a German multinational automotive manufacturing company, said on Wednesday that its electric car sales will probably account 90% of total sales in Norway in 2021 and replace polluting petrol and diesel engines by 2023, Reuters reported citing the auto maker’s local importer.
Shares of GameStop Corp. are up 18% in Thursday afternoon trading after the company announced that it has entered into a multi-year partnership with Microsoft Corp. . Through the partnership, GameStop will use Microsoft's Dynamics 365 portfolio of cloud applications to help run its back-end and in-store operations. GameStop plans to use Dynamics to gain insights into customer preferences. GameStop employees will also use Microsoft Surface tablets while working with customers, and GameStop will use Microsoft Teams for workplace communications. The company said in a release that it's adding Xbox All Access to its offerings, "which provides an Xbox console and 24 months of Xbox Game Pass Ultimate to players with no upfront cost." The company expects both it and Microsoft to benefit from "the customer acquisition and lifetime revenue value of each gamer brought into the Xbox ecosystem." GameStop shares were halted prior to the announcement and have seen resumed trading. The stock has risen 160% over the past three months as the S&P 500 has gained 9%.
The U.S. death toll from the coronavirus illness COVID-19 edged above 211,000 on Wednesday, as doctors and medical experts said President Donald Trump is entering a key phase in the illness which can take a turn for the worse seven to 10 days into the onset of symptoms.
IBM, a company that originally made its name out of its leadership in building myriad enterprise hardware (quite literally: its name is an abbreviation for International Business Machines), is taking one more step away from that legacy and deeper into the world of cloud services. The company today announced that it plans to spin off its managed infrastructure services unit as a separate public company, a $19 billion business in annual revenues, to help it focus more squarely on newer opportunities in hybrid cloud applications and artificial intelligence. Infrastructure services include a range of managed services based around legacy infrastructure and digital transformation related to it.
“We are hearing from our constituents right and left,” one lawmaker said at a Wednesday hearing where IRS Commissioner Charles Rettig testified.
(Bloomberg) -- Workhorse Group Inc. recovered from an early dip after a short seller published a report accusing the startup electric-vehicle manufacturer of “misleading investors” and alleging it’s unlikely to win a key contract to supply postal trucks.The report published Thursday by Fuzzy Panda Research -- a firm that owns a short position in the company’s stock and may stand to gain from a decline in the share price -- alleges Workhorse’s postal-truck prototypes were plagued with problems and exceeded maximum cost guidelines. It also claims a postal driver was injured when a parking brake failed in one of Workhorse’s prototypes.Workhorse is among the final contenders for a U.S. Postal Service contract for a fleet of next-generation delivery trucks that could be worth as much as $6.3 billion after some 163,000 postal trucks currently in service are phased out.Workhorse declined to comment on the report. A USPS spokeswoman said it could not comment on the contract or bidding process.Shares of Workhorse declined 1.2% to $23.91 at 1:08 p.m. in New York after paring an earlier decline of as much as 6.1%. The stock had declined as much as 9% in premarket trading.Nikola Corp., another electric-truck startup, was the target of a similar critical report published last month by short seller Hindenburg Research. That report triggered a collapse in Nikola’s shares even though the company denied allegations of deception.Fuzzy Panda’s report cited information from investigators it sent to two Workhorse facilities in September and anonymous sources, including one that it claimed was “intimately familiar” with the postal-contracting processes and Workhorse’s bid.Workhorse’s onetime partner, VT Hackney Inc., backed out due to chronic “critical failures and breakdowns” in test vehicles, the short-seller report said. It also claims a right-of-first-refusal licensing agreement would make affiliate Lordstown Motors Corp., in which Workhorse owns a 10% stake, the primary beneficiary of any postal contract.Representatives for VT Hackey, now known as ST Engineering Hackney, weren’t available for immediate contact.The report alleges a separate Workhorse contract with United Parcel Service Inc. for as many as 950 trucks is non-binding and unlikely to be fulfilled.(Updates shares and adds USPS response. An earlier version of this story was corrected to show a Workhorse stake in Lordstown Motors)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.