Professional Fighters League CEO Peter Murray discusses how the league is adapting to coronavirus disruption by postponing the season to 2021.
Professional Fighters League CEO Peter Murray discusses how the league is adapting to coronavirus disruption by postponing the season to 2021.
Markets thrive on risk, but risk is hard to talk about. It’s easy to fall back on cliches – buy low and sell high, or the bulls and bears make money while the pigs get slaughtered – but those cliches have drifted into common parlance for a reason. They have a grain of truth.Buying low and selling high has always been known as the way to make a profit, from the earliest days of human barter. And whether the market is moving up or down, whether investors follow a bullish or a bearish strategy, it’s possible to turn that profit.So, let’s talk about buying low. While the overall market has recovered nicely from the pandemic swoon of mid-winter, many stocks are still struggling with a depressed share value. Some of them are fundamentally sound – and Wall Street’s analysts have taking note.Using TipRanks database, we pinpointed three such stocks. Each is down at least 60% so far this year, but each also has a Strong Buy consensus rating and at least 40% upside potential for the coming months.Diamondback Energy (FANG)First up is Diamondback Energy, a Texas oil company that has been part of the Permian Basin boom which put Texas once again at the forefront of the North American oil industry. Diamondback is a smaller player in its industry and its operations are entirely within the Permian, where it is producing some 170,000 barrels of oil daily. While this number is up 40,000 barrels from the springtime, Diamondback has been hit hard by low oil prices in recent months and the stock is down 68% year-to-date.The low prices on the open oil market have impacted Diamondback’s bottom line, and earnings have been falling steadily from their $1.93 per share peak in 4Q19. The 1Q20 EPS was $1.45, while Q2 earnings came in at just 15 cents. The company is set to release third quarter figures on November 3, and the outlook calls for 37 cents – an improvement, but still down. However, it’s important to note here that Diamondback has beaten the earnings forecasts in the last three quarters.On a more positive note, company management points out that despite recent low earnings, FANG was able to end Q3 without touching its revolving credit facility – and that the company has over $2 billion in liquid assets available. Combined with rising production, this gives the company a solid footing.JPMorgan analyst Arun Jayaram, looking at the Texas oil sector and Diamondback’s place in it, sees the company as well-positioned to survive in a low-price environment. “We have consistently viewed FANG as one of the top-tier operators in the industry, and given the recent weakness in oil prices, the mgmt. team has made the prudent decision to sharply reduce activity levels. Given a focus on continuous cost reduction, we believe the company has the inventory depth and balance sheet strength to be a relative outperformer through the downturn,” Jayaram wrote.Jayaram rates FANG shares an Overweight (i.e. Buy), and his $48 price target suggests a 68% upside potential by next year. (To watch Jayaram’s track record, click here)Overall, the Strong Buy consensus rating on FANG is based on 11 recent Buys against a single Hold. The stock is selling for $28.58 per share, and its $52.10 average price target is even more bullish than Jayaram’s, implying an upside of 82%. (See FANG stock analysis on TipRanks)ChampionX Corporation (CHX)Next up is ChampionX, an oilfield technology company acquired its current name this past summer, through the merger of Apergy Corporation and ChampionX Holdings. The combined company kept Apergy’s trading history, and took on the new ticker, CHX. This is a midstream company with operations in the drilling, production, pipeline, and water technology segments of the oil industry. It’s a diversified portfolio of operations that gives ChampionX plenty of room to maneuver in a bearish oil market.ChampionX may need all of that maneuvering room, as the shares are down 76% this year. As with Diamondback, the chief culprit is low oil prices cutting into profit margins. Even though, as a midstream and service company, ChampionX does not directly pull the oil out of the ground and sell it, its operations are tied to the end users’ purchase price. In 2Q20, EPS turned sharply negative with a 43-cent per share net loss. This comes even as revenues rose in Q2, to $298 million.Scotiabank analyst Vaibhav Vaishnav sees CHX in a good place after improving its positioning as a services company.“With the merger with Ecolab’s Upstream business, CHX is now among the top two players in the production chemicals business. This business is relatively very stable as it focuses on production rather than drilling and completions activity. Essentially, daily U.S. or international oil production is the primary driver," Vaishnav opined. To this end, Vaishnav rates CHX an Outperform (i.e. Buy) rating. He gives the stock a $12 price target, indicating confidence in 48% upside growth for the coming year. (To watch Vaishnav’s track record, click here)Overall, CHX has 6 Buys and 1 Hold supporting its Strong Buy consensus rating. With a bullish average price target of $14.09, Wall Street’s analysts see a 73% upside potential from the current share price of $8.11. (See CHX stock analysis on TipRanks)Gol Linhas (GOL)From the oil industry, we move to the airline industry. It should come as no surprise that an airline, even a budget carrier, would face serious difficulties in the current environment of social distancing, trade and travel restrictions and disruptions, and economic shutdowns. Gol Linhas is Brazil’s premier low-cost air carrier, and the country’s third-largest airline. The difficulties facing the airline industry are apparent in GOL’s 62% share price decline since the start of the year.The hit Gol Linhas has taken is clear from the revenues and earnings. At the top line, the 17% sequential revenue drop in Q1 deepened to 88% in Q2, when the company brought in just $357 million. Quarterly revenues for GOL were above $3.8 billion before the corona crisis.The drop in revenue brought a serious loss in earnings. The company typically sees a drop off from Q4 to Q1 in earnings, and this year was no exception. The bright spot was, Q1 beat the forecast and beat the year-ago number. Q2, however, was disastrous, with an 81-cent EPS net loss. While not as deep as the $1.10 expected, it was a serious hit for the company. The outlook for Q3 is no better, at minus 80 cents.The long-term, however, looks better for this budget carrier. Deutsche Bank analyst Michael Linenberg sees GOL with several paths forward – although he believes that real returns will not come in until after 2021. "As we believe 2020 and 2021 will not be representative of GOL’s normal earnings potential, we are basing our 12-month PT on our 2022 forecast as GOL and the global airline industry begin to recover from the effects of COVID-19," the 5-star analyst noted.In line with this long-term optimism, Linenberg sets a $10 price target, implying an upside of 40% over the next 12 months. Accordingly, he rates the stock a Buy. (To watch Linenberg’s track record, click here)Wall Street agrees with Linenberg on the long-term potential here, and GOL’s Strong Buy consensus rating is based on a unanimous 5 Buys. (See GOL 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.
My wife and I co-signed her nephew’s student loans so he could attend a small private college. You loaned money to your nephew by co-signing his loan with the expectation that he would finish college, get a job and repay it. In other words, you co-signed the loan so your nephew would make the investment in his own future.
The current day trading boom will end as these frenzies always do: in tears. While we wait for the inevitable crash, let’s review not only why day traders are doomed but also why most people shouldn’t trade, or even invest in, individual stocks. Day trading basically means rapidly buying and selling investments, hoping to profit from small price fluctuations.
At some point over the next century, the stock market will lose more than 20% of its value in a single day. Maybe this doesn’t seem like useful advice, but the fact is that you’re kidding yourself if you think market crashes of such magnitude won’t happen again. This sobering thought coincides with the 33rd anniversary of the 1987 U.S. stock market crash.
If you have any old-fashioned “value” or “equity income” funds in your 401(k), IRA or other retirement accounts, right about now you may be asking yourself, or your financial adviser, some very awkward questions. Strategists divided the stock market cleanly into “value” and “growth” halves. Morningstar (MORN) the fund-research company, says the average U.S. large company “value” mutual fund has lost 8% so far this year, even including reinvested dividends.
Although Americans typically assume they will retire when they want, and on their own terms, many are in for a surprise
The airline is putting the grounded Boeing jetliner back in its flight schedule for a return to service in late December.
While the wealthy and corporations might have to reach deeper into their pockets to pay Uncle Sam, tax-exempt municipal bonds could emerge as a big winner.
Mortgage rates fall to a new all-time low supporting the real estate sector. As a result, dire labor market conditions have yet to hit home-buyer demand.
(Bloomberg) -- During a town hall meeting Thursday, Democratic presidential nominee Joe Biden again assured shale producers that he wouldn’t ban fracking if elected. Then, in virtually the same breath, he touted his $2 trillion clean-energy plan, which aims to edge natural gas out of the power mix within 15 years.The former vice president’s efforts to walk a tightrope on gas reflect the fossil fuel’s precarious place in the economy. For now, it’s an essential part of American life. Biden has been careful not to make an enemy of the industry, especially in the key battleground state of Pennsylvania, home to the largest U.S. shale-gas field. His policies may even, in the short-term, support the gas market.But in the long run, the fuel may prove economically and environmentally untenable within the power sector, a key market for producers. Biden’s climate plan would only accelerate that outcome, with massive investments in wind, solar and battery storage giving those energy sources a leg up. And his goal of a carbon-neutral grid would severely curb, if not destroy, gas’s share of the pie in favor of cheaper, cleaner renewables.“Decarbonization isn’t a debate -- it’s a fossil-fuel death sentence,” said Kevin Book, managing director of ClearView Energy Partners. “It means a resource is going off the grid. That is the inevitable implication.”Gas, like coal a decade ago, is facing economic headwinds. While it’s still the nation’s dominant fuel source, it’s less competitive against renewables than it used to be. Solar and wind are now cheaper than gas-fired power in two-thirds of the world, according to a BloombergNEF report. In the U.S., solar and wind are already less expensive than even the most efficient type of new gas-fired turbine, Lazard Ltd. said Monday.The right combination of federal policies could easily push gas out of the power mix by 2035 or earlier.“This transition is going to happen more quickly than people thought, just as the coal transition has happened faster than people thought it would,” said John Coequyt, the climate policy director at the Sierra Club.To be sure, gas may reap some benefits from a Biden presidency in the near-term. Though his proposal to limit drilling on federal lands could trim production, tighter supplies could lift prices, potentially making gas exports more profitable. Similarly, a thaw in U.S.-China relations could give exporters greater access to a major world market.But higher prices would have the opposite effect in the power sector, where cost is key. Gas-fired electricity generation is already expected to fall 5.7% this winter compared to last year simply because gas prices are higher this season, according to Energy Information Administration projections. And that’s despite forecasts for a colder winter, which would increase electricity demand.The economics put gas in a roughly similar position as coal in the years before President Barack Obama took office.In coal’s case, Obama hastened its decline by imposing new environmental regulations that made coal plants more costly to operate – notably the 2012 Mercury and Air Toxics Standards that limited toxic emissions from plants, and the 2015 Clean Power Plan that curbed carbon emissions.A Biden administration could take a similar tack, imposing new -- and more stringent -- limits on greenhouse gas emissions from power plants. He could also reinstate and possibly strengthen Obama-era rules curbing methane leaks from gas infrastructure, which were repealed by President Donald Trump. Both have the potential to drive up the cost of gas-fired electricity, without banning the fuel.Most analysts agree that Biden wouldn’t explicitly go after the gas industry in the same way that Obama attacked the coal sector. Instead, Biden’s clean-energy policies would make it harder for gas to compete with wind, solar and other renewables.“You might be able to adopt policies that at least give them a theoretical chance to survive, even if they’re going to make it much harder for them to survive,” said David Spence, a professor at the University of Texas School of Law.For now, there isn’t much pressure to close the gas plants already in service. “Existing gas plants will have a role to play for a while,” said Mark Dyson, a principal at the Rocky Mountain Institute. “They’re keeping the lights on while we build as much wind and solar as we can.”And Biden’s proposal leaves the door open for utilities to continue using gas plants that are fitted with carbon-capture systems that trap emissions, said Jonathan Elkind, senior research scholar at Columbia University’s Center on Global Energy Policy.In Thursday’s town hall, Biden stressed the importance of embracing “new technologies,” including carbon capture, as a way to achieve a carbon-free electricity sector while still using some natural gas.Still, utilities might not want to make that kind of investment when the price of renewables continues to fall.“A lot of the path to net-zero by 2035 for power will come from energy efficiency gains, a lot from renewables, and that will squeeze out fossil fuels eventually,” said Katie Bays, an analyst with Sandhill Strategy in Washington.Already, local jurisdictions are moving away from gas in pursuit of their own climate goals. Cities across California have moved to ban natural gas use in homes, while New York blocked a proposed $1 billion pipeline that Governor Andrew Cuomo. Opposition by environmental groups even drove Dominion Energy Inc. to cancel a major pipeline project before selling most of its gas operations in July.Utilities are also preparing for a gas-less future. Besides building renewables, power giants NextEra Energy Inc. and Entergy Corp. are among companies investing in gas turbines that can transition to running on 100% renewable hydrogen.Still, many doubt whether it’s even possible to achieve a carbon-free power grid in 15 years, which is a more ambitious goal than California and New York have set for themselves. Transforming the electric grid would be both costly and complicated and analysts caution against taking the plan too literally.To pay for it, Biden has proposed an increase in the corporate income tax rate to 28% from 21% as well as using stimulus money. But that would require congressional approval, a tall order if Republicans retain control of the Senate.Nevertheless, the push for decarbonization reflected in the Biden plan presents a real, long-term threat to natural gas as a source of electricity.“There would be a huge downside risk for gas demand,” said Carlos Torres Diaz, head of gas and power market research at Rystad Energy AS, in Oslo. “Even if we don’t get to zero.”(Adds Lazard analysis in fifth 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.
The Dow Jones Industrial Average erased a 100 point jump amid coronavirus stimulus hopes Monday. Tech giants Amazon, Apple, Shopify and Tesla advanced.
Shares of GoodRx Holdings Inc. dropped Monday, after the prescription-drug pricing app received a less-than-enthusiastic endorsement from more than half of the Wall Street analysts who initiated research coverage.
Many popular investment options are looking downright grisly in 2020.
The best cybersecurity stocks are well-positioned in cloud-delivered services. Amid Covid-19, more companies are instructing employees to work from home, creating new computer security issues.
Many tech companies have posted massive share gains since the COVID-inflicted March slump. Few, though, have generated as much upside as Nio Limited (NIO). Catching a ride on the EV trend, since March lows, shares of the Chinese EV maker are up by an incredible 1070%.While Deutsche Bank analyst Edison Yu points out there hasn’t been a specific catalyst to send shares higher, the analyst counts several developments that have helped keep up momentum.First of all, in a recent interview, CEO William Li said that he expects Nio will be able to manufacture 150,000 vehicles annually by the end of next year, compared to the 60,000 it can currently produce. In the long term, Nio hopes to boost the figure up to 300,000 a year.Furthermore, the China market is “inflecting faster” than the analyst anticipated, as evidenced by September’s strong sales; Passenger BEV sales were up 70% year-over-year to 100,000 units. This amounts to the highest monthly volume since June 2019, which was the cut-off month for government subsidies.Additionally, Yu believes the fact customers have been waiting several months for deliveries due to excess orders, has caused growing excitement among buyers, whilst the meteoric rise of the homemade brand has resulted in “patriotic buying.” Add a surge in call option volume into the mix and it all results in a “stock on fire.”Still, Yu also points out how sentiment might change. It is the EV maker giant that Nio needs to keep an eye on.“We do see some risk that Tesla could materially cut the price of its locally made (MIC) Model Y from 488k RMB ($73k) to something in the mid-high 300k range ($56-58k). This could potentially hurt near-term sentiment and slow down NIO’s order book momentum considering it would be a direct competitor to NIO’s EC6 and ES6,” the analyst said.Overall, Yu maintains a Buy rating on Nio shares. Yu intends to revisit his valuation "after the company reports quarterly numbers." (To watch Yu’s track record, click here)Overall, based on 7 Buys, 2 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. However, the analysts think the surge needs to pause for a breather, as the $21.72 average price target implies shares will drop by 22% over the coming months. (See Nio 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.
Shares of Nikola Corp. fell 1.2% in premarket trading Monday, even as J.P. Morgan analyst Paul Coster reiterated his overweight rating on the electric vehicle maker as he tried to assuage concerns that a partnership with General Motors Co. could fall apart. Nikola's stock had tumbled 16.1% on Friday, after Nikola Chief Executive Mark Russell reportedly indicated that the company could manage if GM decides to walk away from the deal, but would cancel plans to produce the Badger truck. Coster said he believes Nikola and GM are still likely to enter a strategic partnership by Dec. 3. "Nikola needs access to GM's supply-chain, engineering resource, the Ultium battery and Hydrotec fuel cells to de-risk the Class 8 truck initiative," Coster wrote in a note to clients. "GM needs to realize a return on billions of dollars of investment in Hydrogen fuel cells, and Nikola might be the best available option." Nikola's stock has tumbled 60.0% over the past three months through Friday, while the S&P 500 has gained 8.0%.
Tesla will start shipping made-in-China Model 3 sedans to Europe, a shift from prior plans as electric car rivalries intensify on the continent.
Few companies have such storied history as IBM, which has undergone a massive, multiyear restructuring. Now, with a new chief executive and big push into the cloud, is IBM stock a buy?
Earnings season is set to pick up this week, giving investors a better picture of the state of corporate profitability amid the ongoing coronavirus pandemic.
What’s more critical for the stock market’s health than the outcome of the presidential election? A COVID-19 vaccine, so says Goldman Sachs. With Q3 earnings season kicking into gear this week, the firm believes the virus’ effect on fundamentals should be the focus, as opposed to the race to the White House. “The vaccine represents a more important factor than the election result for the path of equities... The consequences of the semi-frozen economy on an uneven road to recovery will be in Q3 results,” Goldman Sachs’ U.S. equity strategist David Kostin commented. Even though elections are a source of uncertainty, research analysts from Goldman Sachs found just a 4% difference in EPS if President Trump is re-elected or the Democrats come out on top. Based on the firm’s analysis, an increase in fiscal spending that is partly funded by increased tax revenue would “boost economic growth, and help offset the earnings headwind from high tax rates.” Taking this into consideration, our attention turned to two stocks that Goldman Sachs thinks have outsized growth prospects, with the firm’s analysts forecasting at least 90% upside potential for each. Using TipRanks’ database, we found out both tickers also sport a “Strong Buy” consensus rating from the rest of the Street. Athira Pharma (ATHA) Applying cutting-edge approaches to neurodegenerative diseases, Athira Pharma wants to improve the lives of patients from all over the world. Given the potential of its asset in Alzheimer’s disease (AD), Goldman Sachs is pounding the table. ATHA made its public market debut on September 18, with the first trade coming in at 17.4% above the IPO price. Raising $204 million, the company sold 12 million shares instead of the 10 million that was originally expected. Writing for Goldman Sachs, analyst Graig Suvannavejh points to its lead candidate, ATH-1017, which is a small molecule activator of HGF/MET currently being evaluated in a Phase 2/3 trial as a treatment for mild-to-moderate AD, as a key component of his bullish thesis. The analyst doesn’t dispute that AD is a difficult indication to address, but tells clients he has high hopes for ATHA. “We’re fully cognizant of the history of AD drug development, and its well documented past of high failure rates. As such, AD-focused companies like ATHA should be considered as having high risk. However, as there still remains a significant lack of effective drugs for AD, we believe alternative approaches to treating AD have merit,” he explained. In the past, the most common therapeutic approaches to AD have been those focused on the belief that the accumulation of disease-causing proteins in the brain leads to AD. However, AD therapeutics based on targeting amyloid have all failed in clinical trials to demonstrate efficacy, with monoclonal antibody (mAb) approaches that target tau, another protein that aggregates in the brains of AD patients, also failing. So, ATHA’s differentiated approach makes it a stand-out, in Suvannavejh’s opinion. Looking at the therapy’s mechanism of action (MOA), it is based on HGF/MET agonism, a strategy that hasn’t been studied in AD before. Additionally, Suvannavejh argues the FDA’s recent decision to review Biogen’s aducanumab for approval even though it was prematurely discontinued in two large Phase 3 studies due to futility is a “sign of a positive regulatory backdrop.” On top of this, the company is applying a new thinking to AD clinical trials. It will use a non-traditional technique (EEG) in order to measure improvements in the brains of AD subjects, and a novel clinical trial end point (Global Statistical Test/GST) that will evaluate the efficacy. It is based on both the ERP biomarker and more traditional efficacy measures (e.g., ADAS-Cog). Weighing in on this, Suvannavejh stated, “With this entirely innovative way of thinking in mind, we think it’s critical to acknowledge that FDA has already provided its sign off to ATHA’s novel clinical trial plan — which importantly also reduces overall time and costs typically associated with AD drug development. Further, given our view that FDA may be experiencing a sense of urgency to get new AD therapeutics in the hands of patients, their caregivers and physicians, we believe the time is right for a candidate like ATH-1017.” When it comes to the revenue potential for ATH-1017, according to Suvannavejh, neurodegenerative diseases represent one of the highest areas of unmet medical need, with it estimated that more than 5 million people over the age of 65 in the U.S. have AD. This number is expected to nearly triple by 2050, based on research from the Alzheimer’s Association. To this end, the analyst projects risk-unadjusted peak 2035 sales of $10.8 billion. Everything that ATHA has going for it convinced Suvannavejh to initiate coverage with a Buy rating. In addition to the call, he set a $53 price target, suggesting 189% upside potential. (To watch Suvannavejh’s track record, click here) Judging by the consensus breakdown, opinions are anything but mixed. With 4 Buys and no Holds or Sells assigned in the last three months, the word on the Street is that ATHA is a Strong Buy. At $42.50, the average price target implies 132% upside potential. (See Athira Pharma stock analysis on TipRanks) Denali Therapeutics (DNLI) Dedicated to defeating neurodegenerative diseases through rigorous therapeutic development, Denali Therapeutics is attracting significant attention from Wall Street. Ahead of a key data readout, Goldman Sachs has high hopes. As the company gears up to report first proof-of-concept biomarker data for DNL310 in Hunter syndrome by YE20, the firm’s Salveen Richter likes what she’s seeing. DNL310 is a recombinant form of the iduronate 2-sulfatase (IDS) enzyme engineered to cross the blood-brain barrier (BBB) using Denali’s enzyme transport vehicle (ETV) technology, which enables the trafficking of large molecules into the brain. DNLI is set to publish initial data from Cohort A, and management expects the starting dose of 3mg/kg to reduce CSF GAGs by 50% at eight weeks. A second Cohort B will evaluate DNL310 in a broader range of patients, with dose escalation levels based on findings from Cohort A. Richter points out a 50% reduction in CSF GAGs was associated with a decrease in lipid lysosome and neurofilament light (NfL) chain accumulations that are associated with neuronal degeneration and injury. “While this is the first in-human trial for DNL310, we see the pre-clinical data as strongly supportive of the anticipated therapeutic benefit and potential for GAG reduction in the CSF to drive downstream changes in lysosomal lipid and NfL accumulation (i.e. prevent neuronal dysfunction and injury) for improved cognition and function,” Richter commented. It should be noted that the preclinical and early clinical data for JCR Pharmaceuticals’ JR-141, a BBB-penetrant fusion protein that also leverages receptor-mediated transcytosis to traffic iduronate-2-sulfatase (I2S) to the brain, de-risks the approach, in Richter’s opinion. To this end, the five-star analyst believes positive DNL310 biomarker data could serve as proof-of-concept for DNLI’s transport vehicle (TV) technology. The platform’s modularity could allow for various large molecules to be transported across the BBB, for a range of other neurodegenerative indications like Parkinson’s disease (PD) and frontotemporal dementia (FTD). On top of this, DNLI could leverage this delivery platform for antibodies, proteins or enzymes not currently in its own portfolio, with increasing interest on assets from Biogen, according to Richter. In line with her optimistic approach, Richter stayed with the bulls, reiterating a Buy rating. She also bumped up the price target from $41 to $60. Investors could be pocketing a gain of 36%, should this target be met in the twelve months ahead. (To watch Richter’s track record, click here) Looking at the consensus breakdown, 6 Buys and 2 Holds have been issued in the last three months. Therefore, DNLI gets a Strong Buy consensus rating. Based on the $51.17 average price target, shares could surge 16% in the next year. (See Denali Therapeutics stock analysis on TipRanks) 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.