blog

Latest from the Quantamize Blog

Global Stocks Trending in the News for March 12th, 2019

Mar 12, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

 

Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.

Global Consumer Stocks Trending in the News

  • Coca-Cola (KO) was downgraded today at HSBC to hold from buy.  HSBC also cut Coca-Cola’s price target to USD$50 from USD$64.  HSBC comments that Coca-Cola has “both new and unresolved problems."  HSBC sees real challenges in its plans to become a total beverage model company.  Coca-Cola is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas
  • Dick’s Sporting Goods (DKS) fourth quarter revenue was USD$2.49 billion matching consensus of USD$2.48 billion.  Fourth quarter ESP of USD$1.07 beat USD$1.06 consensus.  Fourth quarter same stores sales fell 2.2%, coming better than the 3.3% drop expected.  Dick’s gave 2019 ESP guidance of USD$3.15-3.35.  Dick’s Sporting Goods is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Pandora (CPSE: PNDORA) was cut at Carnegie to sell from hold.  Carnegie also cuts its price target to DK325 from DK360.  Carnegie added, however, that Pandora could trade well below that price target if the coming results confirm a further slowdown in China.  Pandora is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Tesla (TSLA) has backtracked on its plans to close stores and sell only online.  Investors were left confused with the move that came shortly after announcing the closures of its stores and cuts to prices of 6%.  Prices will rise 3% with the announcement.  Tesla CEO Elon Musk is pushing back against the SEC and its claims saying the government is trying to muzzle him.  Also, Tesla is in talks about potentially ordering batteries from Contemporary Amperex Technologies (SZSE:300750) according to press reports.  Tesla reported in its last annual report that it only had one battery supplier and was looking for more.  The batteries would power the Model 3s that Tesla plans to start building at its new factory in China.  Telsa is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  Contemporary Amperex Technologies is not rated in our Global Top Stock Ideas.

Global Information Technology & Communication Services Stocks Trending in the News

  • Alibaba (BABA) continues its push into delivery and logistics.  Alibaba is acquiring a 49% stake in China’s largest delivery company STO Express.  Alibaba will not control the company but as a strategic investor will participate in decision making.  STO Express is one of the 5 largest private logistics companies in China.  Alibaba has invested in 4 of those 5, STO included.  Alibaba is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Alphabet (GOOG.L)Facebook (FB). Amazon (AMZN) and other large tech companies should be broken up by the government because they have become too powerful, according to a report released by Senator Elizabeth Warren today.  She proposed designating these companies “platform utilities” and the creation of regulators to assure small business are not harmed by these companies.  Alphabet is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  Amazon is rated “Neutral” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.  Facebook is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Apple (AAPL) announced a March 25th event at which it is expected to unveil an original video programming platform as well as a new premium magazine subscription service.   In announcing the event, Apple used the tagline “It’s show time.”  Apple is building its services business as iPhone sales lag, the video service is expected to be similar to other video service platforms like Netflix (NFLX).  Apple is rated “Neutral” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  Netflix is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Care.com (CRCM) announced a set of new policies to oversee its members and providers on its site on the wake of the WSJ article criticizing its practices.  Care.com had its buy rating reaffirmed at BTIG after a WSJ article critical of the company sent the shares lower.  The WSJ said Care.com’s lack of background checks and users misunderstandings about the lack of them has led to “tragic outcomes.”  BTIG reaffirmed both its buy rating and USD$26 price target.  BTIG said it understands reputational risk exists but does not see risks of criminal liability.  Care.com is rated “Neutral” in our US SMID-Cap and “Top Short” in our US Information Technology Global Top Stock Ideas
  • Disney (DIS) has the first blockbuster movie of 2019 with the release of “Captain Marvel”.  Disney saw the film earn USD$145 million in the US and USD$453 million in global ticket sales.  2019 has been weak for films so far so this is a welcome arrival for Disney.  Disney is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Facebook (FB) removed ads from Senator Elizabeth Warren that called for the company to be broken up.  Facebook restored the ads only after being called out for the move by Politico.  Facebook said the ads were removed because their corporate logo was used without permission.  The ads have since been restored by Facebook.  Facebook is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas
  • FireEye (FEYE) shares traded notably higher after JPMorgan upgraded the stock to overweight from neutral, citing that it expects FireEye billings to, “accelerate through the course of 2019.” FireEye matins 12 buy, 14 hold, and 1 sell recommendation across analyst forecasts with a consensus price target of USD$20/share. FireEye is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.
  • Momo (MOMO) saw monthly active users in the fourth quarter of 113.3 million users.  Total paid users reached 13 million, up from 7.8 million a year ago.  Momo saw net revenue of 3.84 billion yuan (USD$559 million) in the fourth quarter.  Momo changed its reporting currency to yuan from US dollars to minimize volatility.  Momo gave first quarter revenue guidance of 3.55-3.65 billion yuan.  Momo is rated “Top Buy” in our China All-Cap Global Top Stock Ideas.
  • Nvidia (NVDA) agreed to acquire Mellanox Technologies (MLNX), in a USD$5.8 billion deal.  Mellanox is focused on the technology that speeds data throughout a data center.  Bloomberg earlier reported on the talk and the deal was confirmed by both parties.  Mellanox is based in Israel.  Nvidia is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.  Mellanox is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Oracle (ORCL) was downgraded 2 notches as Nomura to reduce from buy.  Nomura also cut Oracle’s price target to USD$42 from USD$53.  Nomura notes that Oracle is spending on share buybacks at the expense of investing in R&D.  Nomura expects Oracle will return to its average of USD$3 billion per quarter from its present USD$10 billion per quarter, calling its present rate “unsustainable”.  Oracle is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Deutsche Bank (DB:DBK)  CEO Christian Sewing is reportedly dropping his resistance to a merger with Commerzbank (DB:CBK)  this year.  Informal talks between the companies have intensified in recent days, though a formal mandate has yet to be declared.  The German Finance Ministry favors a merger between the 2 as opposed to a merger with a foreign player. Deutsche Bank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.  Commerzbank is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Ping An Insurance (SEHK:2318) reported a 21% hike in profit in 2018.  Ping An’s net income rose to 107.4 billion yuan (USD$16 billion) up from 89.1 billion yuan a year earlier.  Consensus was for 97.5 billion yuan profit in 2018.   Pin An said one of its key goals is to become a world-leading, technology-powered retail financial services group.  Ping An Insurance is rated “Attractive” in our China All-Cap Global Top Stock Ideas.

 

 

We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.
We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

Global Industrials Stocks Trending in the News

  • Boeing’s (BA) problems with the 737-800 Max are growing.  Following China and India yesterday, today countries have grounded the planes in Singapore, Australia and Latin America.  The FAA in the US has declared the jet airworthy and no US airlines have stopped flying the planes.  The investigation into the latest crash has just begun so the groundings are being done out of an abundance of caution.  Boeing is rated “Attractive” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas.
  • General Electric (GE) was in talks to offload its insurance business before the talks were derailed, according to a report by Melius Research today.  GE recently reported it needed to put USD$15 billion into loss reserves for the unit as it continues to look for a buyer for it.  General Electric is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • JetBlue (JBLU) saw its rating cut at Barclays to equal weight from overweight.  Barclays also cut its price target for JetBlue to USD$20 from USD$27.  Barclays writes “there is a lot to like but not much traction” on a number of its initiatives.  JetBlue is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas.

Global Commodities & Power Stocks Trending in the News

  • Newmont Mining Corp. (NEM) successfully defended a hostile bid by Barrick Gold Corp. (TSX: ABX), although for just two years, after agreeing to a joint venture between the two companies’ operations in Nevada. Barrick Gold Corp. CEO Mark Bristow said in an interview Monday, “We won’t be going to buy each other’s shares and enter into any hostilities for the next two years.” Newmont Mining Corp. is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas. Barrick Gold Corp. is rated “Neutral” in our Canada All-Cap Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • Allergan’s (AGN) price target was cut to USD$190 from USD$219 at Guggenheim today.   Despite the target cut Guggenheim maintained its buy rating on Allergan.  Guggenheim generally likes Allergan’s open science platform but believes it will be some time before investors may see consistent delivery of pipeline successes.  Allergan is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Harvest Health & Recreation Inc. (CNSX) will acquire Verano Holdings LLC in the largest M&A deal the US marijuana industry has seen to date. Once combined, the company will have licenses to operate up to 200 facilities across 16 US states and territories, which include 123 retail dispensaries. The acquisition, “will give us a leadership position in one of the largest cannabis markets in the world,” Harvest Health & Recreation Chairman Jason Vedadi said in a public statement. Harvest Health & Recreation is not rated in our Global Top Stock Ideas.

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS