Stock Buyback Frenzy: May Be Adverse To Long-Term Objectives

Stock buybacks have been prolific in the past 15 months. This aggressive repurchase strategy might not be as beneficial as the market wants us to believe. Analysts at Ned Davis Research estimates that the S&P 500 would be 19% lower than it currently is today if companies hadn’t repurchased any stocks. In my previous Stock Buyback Frenzy article, I discussed all the advantages and positives implications that stock buybacks could have on you and the stocks you are investing in. In this article I will look at the other side of the stock buybacks, including execs looking for short-term stock[…]

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Stock Buyback Frenzy: How This Will Effect You

Corporate cash reserves have been swelling, as firms repatriated $665 billion back into the US in 2018 and corporate cash flows are hitting all-time highs, partly due to the reduced corporate tax rate. Businesses have reviewed their possible cash allocation options and many are deciding that stock buybacks are the best choice for their investors. So far in Q1, over 80% of S&P 500 companies had reported stock repurchases this past quarter, with an overall repurchase of $180 billion worth of equity. The question that we, as investors may have is, what implications does a stock buyback have on me[…]

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Fundamental Market Overview: Equities, Oil Prices, Interest Rates, Gold Prices and More

Equity Market The S&P 500 just bounced off another all-time high today as stronger than expected earnings continue to boost the market. The S&P 500 has grown 17.5% since the beginning of the year, continuing its momentum from Q1 which was the biggest market rally in almost a decade and has officially gained back everything it lost in the Q4 correction and more. Below you can see the 52-week performance chart for the S&P 500. If this rally is going to continue it wouldn’t be a bad idea to take a look at S&P tracking ETFs like VOO or IVV.[…]

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A Big Deal Reignites Cannabis Stocks

Late last Thursday, during the final trading session of a holiday-shortened week, Canadian Cannabis company Canopy Growth Corp (CGC) announced that it had reached an agreement to purchase 100% of US cannabis investment company Acreage Holdings in a uniquely structured deal. It’s a sign that the industry has come a long way in a very short time since the phrase “big marijuana deal” meant something else entirely… Though the industry seems ripe for consolidation – with huge, established players with cash to spend hungrily eyeing smaller upstarts who have interesting intellectual property or market position – the patchwork of cannabis[…]

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New Age Beverages Corporation (NBEV) Gets a Hold Rating from Maxim Group

In a report released today, Anthony Vendetti from Maxim Group maintained a Hold rating on New Age Beverages Corporation (NBEV). The company’s shares opened today at $5.44. Vendetti said: “NBEV reported 4Q18 revenue above our estimate, we believe due to 10 days of Morinda revenue following its acquisition on 12/21/2018. Operating loss was wider than expected, due primarily to acquisition-related costs. We are adjusting our estimates to account for the addition of Morinda, which we expect to provide about 80% of total NBEV revenue at a historically-stable 80% gross margin, 6% operating margin, and 8% EBITDA margin.” According to TipRanks.com,[…]

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H.C. Wainwright Thinks Madrigal Pharmaceuticals Inc’s Stock is Going to Recover

H.C. Wainwright analyst Ed Arce maintained a Buy rating on Madrigal Pharmaceuticals Inc (MDGL) today and set a price target of $228. The company’s shares opened today at $126.86, close to its 52-week low of $91.56. Arce noted: “We continue to expect the initiation of an additional Phase 3 study by mid-2019 in patients with NAFLD (simple steatosis) and early NASH (no fibrosis) and dyslipidemia. Recall, a prior study in patients with heterozygous familial hypercholesterolemia (HeFH), have demonstrated the pleiotropic activity of resmetirom which includes reducing levels of an array of atherogenic lipids; LDL-C, ApoB, triglycerides, ApoCIII, and Lp(a), liver[…]

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Oppenheimer Maintains a Hold Rating on RH (RH)

In a report released today, Brian Nagel from Oppenheimer maintained a Hold rating on RH (RH). The company’s shares opened today at $112.77. Nagel wrote: “Yesterday (Mar. 28th) after the market close, Perform-rated RH (RH) reported fiscal Q4:18 (Jan. 2019) results and updated guidance for FY19 (Jan. 2020). Shares are trading down markedly, upon indications of a weaker than expected end to last year and beginning of 2019. Management outlined clearly that the combination of macro challenges and some internal issues has weighed upon sales trends at the chain over the past several weeks. As we have indicated, we admire[…]

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Celyad (CYAD) Gets a Buy Rating from H.C. Wainwright

H.C. Wainwright analyst Edward White maintained a Buy rating on Celyad (CYAD) today and set a price target of $52. The company’s shares opened today at $21.09. White wrote: “We base our $52 price target on probability-adjusted revenue forecasts for CYAD-01 in r/r AML, and third-line metastatic for metastatic CRC. We use the net present value of our revenue forecast through 2027, apply a 25% POS for 20% POS for 10% POS for 4x price/sales multiple. We include our year-end 2019 estimated fully diluted net cash of $0.97/share (assuming €1.00 = $1.13) to arrive at our price target. Our P/S[…]

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Bluebird Bio (BLUE) Gets a Hold Rating from Maxim Group

Maxim Group analyst Jason McCarthy maintained a Hold rating on Bluebird Bio (BLUE) today. The company’s shares opened today at $155.27. McCarthy wrote: “Bluebird announced a positive opinion from CHMP recommending conditional marketing authorization for Zytenglo gene therapy for non-β 0 /β 0 transfusion- dependent β-thalassemia (TDT) in the EU. Zytenglo approval would usher in the first gene therapy for TDT and the first approved therapy for bluebird. Following the CHMP opinion, an EU marketing decision is expected in 2Q19. NDA filing in the U.S. is expected later this year.” According to TipRanks.com, McCarthy is ranked 0 out of 5[…]

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