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Global Stocks Trending in the News for January 2nd, 2019

Jan 02, 2019

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Global Consumer Stocks Trending in the News

  • Amazon (AMZN) is making a big push in India to train shoppers on using its website.  Amazon has added Hindi and videos to its ordering screen to help residents on the Indian countryside, according to a report in the Wall Street Journal today.   Amazon is also adding small stores where shoppers can learn and a fleet of local delivery people what can accept payment when delivering.  Amazon is focused on the interior in Indian where 800 million people live and often d not have access to a retailer.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Amazon (AMZN) plans to expand its Whole Foods stores network into suburbs where it is adding clients, according to a report in the Wall Street Journal.  Additional Whole Foods locations will allow Amazon to expand its Prime Now 2-hour delivery service.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Camping World Holdings Inc. (CWH) shares are falling, extending its YTD loss to more than 70%, after reporting that President Roger Nuttall resigned from his position, effective immediately. Camping World Holdings is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Canada Goose (TSX: GOOS) opened its first store in China this past Friday.  The store is located in Shanghai and has seen heavy crowds since its opening.  This despite the diplomatic tension between Canada and China after Canada detained a Huawei executive at the US’s request.  Canada Goose is not rated in our Global Top Stock Ideas.
  • Michael Kors Holdings (KORS) has changed its name to Capri Holdings.  On Wednesday, January 2nd Capri Holdings will start trading on the NYSE under the symbol CPRI.  Capri Holdings will have about USD$8 billion in sales in 2019.  Michael Kors Holdings is not rated in our Global Top Stock Ideas.
  • Netflix (NFLX) has removed a TV from streaming in Saudi Arabia at the request of regulators there.  Netflix removed a show that is critical of the US-Saudi Arabia relationship after regulators said the show runs afoul of Saudi Arabia’s cybersecurity laws.  Netflix is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Sears Holding Corporation (SHLD) Chairman Eddie Lampert has submitted his highly anticipated USD$4.4bn takeover bid to keep the US retailer from bankruptcy.  The takeover bid is backed by USD$1.3bn in financing from three different financial institutions. Lambert’s takeover bid is the only way for Sears to avoid liquidation. Sears is rated “Top Short” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tesla (TSLA) CEO Elon Musk will visit China in 2019 for the inauguration of Tesla’s production facility there.  Tesla’s factory is known as Gigafactory 3 and is located in Shanghai.  Elon Musk tweeted that he would be in China soon for the event without giving a date.  Tesla is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Weight Watchers (WTW) shares fell over 6% during the last day of year as the most important season for dieting begins.  Weight Watchers has a disappointing 3Q and analysts are generally expecting an improving situation.  DA Davidson Research call the new advertising campaign “fresh and upbeat”.  Weight Watchers should deliver 12% sales growth in 2019, they highlighted in a note to clients today.  Weight Watchers is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology and Communication Services Stocks Trending in the News

  • Akami (AKAM) was downgraded today to market perform from outperform at JP Morgan.  Akami’s price target was cut to USD$73 from USD$86.  Akami will see lower top-line growth than previously expected.  Akami is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Baidu Inc. (BIDU) Chairman Robin Li said in an open letter today that the firm will focus on opportunities in artificial intelligence (AI) technology in 2019. In the open letter, Li highlighted the enormous opportunities for growth and augmentation in the technology. Baidu is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Facebook (FB) Messenger is likely set to introduce a dark mode, according to reports. Jane Machun Wong, a tech tipster, posted a screenshot on Twitter that appears to be a work in progress of a dark mode interface for Facebook Messenger. A dark mode for Facebook Messenger would effectively make the application easier to use at night while saving battery for Android users. Facebook is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Facebook’s (FB) recent data scandal has brought many criticisms of inaction at the Federal Trade Commission, according to a New York Times report today.  Facebook was not responsible for consultant’s misuse of Facebook user data, the Commission rules, rankling many proponents of stronger data protection rules.  Facebook is rated is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Tencent (TCEHY, SEHK: 700) was not the beneficiary of any approval for video games as China published approval for 80 new games titles.  China’s State Administration of Press, Publication, Radio, Film, and Television published the approvals online today.  China suspended approval of all new games earlier this year throwing a cloud of uncertainty over the sector.  Tencent Amazon is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Vodafone (LSE: VOD) Ukraine will begin offering its customers free delivery of LTE-supporting USims. The promotion will last until February 18th, 2019 and will require customers to register on the corporate online site of Vodafone. Vodafone is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. 

Global Industrials Stocks Trending in the News

  • Geely Automotive (SEHK: 175) released the first photos of its new models as it seeks to broaden its automotive offerings.  Geely Automotive released photos of a new coupe SUV that is based on its new modular architecture.  Geely did not give a data it will go on sale nor a price for the vehicle.  Geely Automotive is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • Jet Airways Limited (BSE: 532617) is reportedly in talks with the State Bank of India pertaining to a short-term 15bn rupee loan to meet working capital needs and current payment obligations. Reports by Press Trust of India highlights that Jet Airway’s partner Etihad may guarantee the loan. Jet Airways is rated “Top Buy” in our India All-Cap Global Top Stock Ideas.
  • Nissan’s (TSE: 7201) ousted chairman Carlos Ghosn will remain in jail until January 19th as prosecutors won more detention time for him.  Mr. Ghosn has been detained since November 19th for alleged financial crimes related to his personal finances.  Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas.
  • Tata Steel Ltd (BSE: 500470) has its stock downgraded today by CLSA.  Tata Steel was downgraded to sell from neutral at CLSA.  Tata Steel’s price target was slashed to 460 rupees from 815 rupees, implying an 8.6% downside from its last price.  Tata Steel is not rated in our Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Aflac (AFL) said it will enter reinsurance agreements on certain products with Singapore Life.  Aflac will make an initial USD$20mn minority investment in the concern as Aflac seeks to enter new markets.  Aflac describes the venture as a good example of its ability to leverage digital technology to enter new markets.  Aflac is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Aflac Inc. (AFL) has been downgraded by JPMorgan Chase & Co. to neutral from overweight. JPMorgan Chase & Co. forecasts a price target of USD$51/share for Aflac, implying a 12% upside from Monday’s close. Across industry estimates, Aflac maintains an average price target of USD$46.50. Aflac is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Apollo Global Management’s (APO) USD$20 billion to acquire Arconic Inc (ARCN)is being delayed into 2019 given turmoil in the credit markets, according to a report in the NY Post today.   The report says the Apollo will proceed if markets loosen up.  Apollo Global Management Amazon is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.   Arconic is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Short” in our US Industrials Global Top Stock Ideas.
  • Banca Carige (BIT: CRG) saw its operations placed under temporary administration by the European Central Bank.  Banca Carige saw this happen after it failed to raise additional capital last week.  A team from the ECB will help the bank lower risk and potentially find a partner.  Banca Carige is rated “Unattractive” in our European SMID-Cap Global Top Stock Ideas.
  • Distribuidora Internacional de Alimentacion SA (BME: DIA) has executed a series of agreements following the company obtaining the last pending approval from a financial institution. The agreements will grant DIA will access to additional short-term financing of 215mm euros and 682mm euros of financing through working capital financial instruments. DIA is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas
  • Standard Chartered (LSE: STAN) Bank Hong Kong will charge a minimum brokerage fee of HK$50 for its Hong Kong securities trading service while maintaining its previous brokerage fee of 0.2%. The policy will reportedly have the largest impact on day traders. Standard Chartered Bank Hong Kong is rated “Unattractive” in our United Kingdom All-Cap Global Top Stock Ideas. 

Global Commodities Stocks Trending in the News

  • Pacific Gas and Electric Co. (PCG) worker has been hospitalized following the explosion of a company transformer. California’s Division of Occupational Safety and Health will conduct an official investigation into the matter. PG&E is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Vestas Wind Systems A/S (CPSE: VWS) has received its first order from China State Power Investment Corporation, one of China’s five largest power companies. The order is a 19MW order of 4MW platform turbines. Additionally, the order includes a 5-year Active Output Management 4000 service agreement with delivery and commissioning expected to be completed in 3Q2019. Vestas Wind Systems is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Abbott Labs (ABT) was downgraded to sell from neutral at Citi today.  Abbott Labs’ price target was lowered to USD$68 from USD$72.  Abbott Labs’ price target implies 8% downside from its last close.  Abbott Labs is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Becton, Dickinson & Co (BDX) was named a top large-cap pick at JP Morgan for 2019.  Becton, Dickinson will see 6-7% growth in 2019, growing faster than peers.  Becton, Dickinson will see margin expansion in 2019 in the wake of its acquisition of Bard, 2019 will see full integration of the Bard business.  Becton, Dickinson & Co is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • BioMarin Pharmaceutical Inc. (BMRN) has been downgraded by Raymond James from outperform to market perform. BioMarin currently maintains 22 buy recommendations, 6 hold recommendations, and 0 sell recommendations across industry ratings. Over the last year, analysts have raised BioMarin’s consensus price target by 0.8%. BioMarin is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Heron Therapeutics’ (HRTX) HTX-011, new drug application, has been accepted and granted Priority Review designation by the Food and Drug Administration. The new drug application for HTX-011 contains data from five different Phase 2 trials and two different Phase 3 trials pertaining to postoperative pain treatment. Heron Therapeutics is rated “Top Short” in our US Large-Cap Global Top Stock Ideas. 
  • Omega Healthcare (OHI) announced that it will acquire MedEquities Realty Trust (MRT) in a deal that values MedEquities at USD$600mm in enterprise value. The acquisition will see Omega take on USD$34mm in mortgage loans while diversifying the firm’s property portfolio to 7 different states. Omega Healthcare is rated “Neutral” in our US Large-Cap Global Top Stock Ideas. MedEquities is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Wright Medical Group (WMGI) was chosen as a 2019 top picks among medical technology companies by Piper Jaffray.  Wright Medical Group should see “solid growth” in 2019 in a sector it says “is cheap”.   Wright Medical Group is not rated in our Global Top Stock Ideas.

 

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