Shares of Baker Hughes (BHI) had dropped 6.6% during the first three days of the week after the announcement that it would join forces with General Electric‘s (GE) oil & gas business. Today, however, they’ve rebounded, perhaps suggesting that investors are coming around to the long-term prospects of the deal. In a note released yesterday, FBR’s Thomas Curran and Mark Kelley explain what those are:
Since October 28, 2016, as a correction in oil has stoked the latest retreat in OFS stocks,Baker Hughes has underperformed. Given that both sides of the Street seem to perceive de minimis regulatory risk to deal consummation, we believe Baker Hughes’ sell-off chiefly reflects stock participants’ evaluation of the (1) reshaping ofBaker Hughes’ risk-reward profile and (2) potential of the merged entity. With this deal, we believeBaker Hughes essentially chose to forego pre-2019 optionality that could have yielded more 20172018 upsidesuch as insisting on a takeover premium from General Electric, pursuing other M&A possibilities, or remaining solely focused on its flourishing transformation in exchange for a post-2018 with greater potential. Although we do expect Baker Hughes’ trade-off to eventually be vindicated, the deal has also reinforced our existing 2018-based valuation, in our view, capping the stock at $62 for the next 912 months. Baker Hughes’ 8% decline has also reduced the merged entity’s implied enterprise value by 11%. We think investors are also signaling skepticism about guidance for the merged entity, especially for GE Oil & Gas….
Best Stocks To Own For 2018: Daxor Corporation(DXR)
- [By Logan Wallace]
Daxor Co. (NYSEAMERICAN:DXR) saw a significant growth in short interest in the month of March. As of March 29th, there was short interest totalling 234,045 shares, a growth of 1,257.4% from the March 15th total of 17,242 shares. Based on an average daily trading volume, of 1,214,477 shares, the days-to-cover ratio is presently 0.2 days. Currently, 33.3% of the company’s shares are short sold.
- [By Lee Jackson]
Also last week, the chairman of Daxor Corp. (NYSEMKT: DXR), Joseph Feldschuh, who is also the chief medical officer, boughta block of 172,000 shares of the stock at $8.50 per share. The listed total for the purchase was $1,462,000.
Best Stocks To Own For 2018: 8point3 Energy Partners LP(CAFD)
- [By Laurie Kulikowski]
We highlight CAFD as our top income oriented pick, a relatively safer, more conservatively-run company within our YieldCo coverage. The stock is yielding 7.5% on a FY16E DPS basis, and provides predictable income over the next several years, regardless of new projects beyond the initial portfolio. With two of the strongest companies in the solar industry serving as sponsors, enough liquidity on the balance sheet to fund growth-projects through mid-2016, and additional levers to pull in order to grow DPS if needed (e.g. payout ratio), we believe CAFD is undervalued.
- [By Lisa Levin]
8Point3 Energy Partners LP (NASDAQ: CAFD) was down, falling around 9 percent to $12.05. 8point3 Energy reported Q1 earnings of $0.03 per share on revenue of $9.9 million. First Solar announced plans to review alternatives for the sale of interest in 8point3 Energy Partners. Wells Fargo downgraded 8point3 Energy from Outperform to Market Perform.
- [By Shanthi Rexaline]
Wells Fargo Securities downgraded shares of 8Point3 Energy Partners LP (NASDAQ: CAFD) and lowered its price target on Thursday, citing growth/strategic concerns given future sponsorship uncertainties.
- [By Shanthi Rexaline]
If the Suniva noise is removed, the firm believes First Solar stock becomes a fundamental story of execution and long-term share gains. The firm also noted that the company has found success selling off projects to third parties, as intended, with the management seeing more value in selling to third-parties rather than to 8Point3 Energy Partners LP (NASDAQ: CAFD).
Best Stocks To Own For 2018: Kamada Ltd.(KMDA)
- [By Lisa Levin] Companies Reporting Before The Bell
Tyson Foods, Inc. (NYSE: TSN) is expected to report quarterly earnings at $1.38 per share on revenue of $9.86 billion.
Aecom (NYSE: ACM) is projected to report quarterly earnings at $0.71 per share on revenue of $4.67 billion.
JD.Com Inc(ADR) (NASDAQ: JD) is estimated to report quarterly earnings at $0.11 per share on revenue of $12.60 billion.
58.com Inc (ADR) (NYSE: WUBA) is projected to report quarterly earnings at $0.28 per share on revenue of $383.60 million.
Kamada Ltd (NASDAQ: KMDA) is expected to report quarterly earnings at $0.02 per share on revenue of $25.00 million.
Palatin Technologies, Inc. (NYSE: PTN) is projected to report quarterly earnings at $0.06 per share on revenue of $28.00 million.
TheStreet, Inc. (NASDAQ: TST) is estimated to report a quarterly loss at $0.02 per share on revenue of $15.81 million.
Atlantica Yield PLC (NASDAQ: ABY) is projected to report quarterly earnings at $0.45 per share on revenue of $290.80 million.
Asure Software Inc (NASDAQ: ASUR) is estimated to report quarterly earnings at $0.15 per share on revenue of $15.26 million.
Cyren Ltd (NASDAQ: CYRN) is expected to report quarterly loss at $0.06 per share on revenue of $7.90 million.
Viewray Inc (NASDAQ: VRAY) is estimated to report quarterly loss at $0.12 per share on revenue of $18.58 million.
- [By Lisa Levin]
Shares of Kamada Ltd (NASDAQ: KMDA) were down 21 percent to $5.93 after the company reported the withdrawal of European Marketing Authorization Application for inhaled Alpha-1 Antitrypsin.
Best Stocks To Own For 2018: Renesola Ltd.(SOL)
- [By Monica Gerson]
Wall Street expects ReneSola Ltd. (ADR) (NYSE: SOL) to report a quarterly loss at $0.04 per share on revenue of $256.05 million. ReneSola shares gained 2.50 percent to close at $1.23 on Friday.
- [By Lisa Levin] Gainers
Aimmune Therapeutics Inc (NASDAQ: AIMT) shares jumped 35 percent to $34.64 in response to failed DBVT peanut allergy trial.
Exactech, Inc. (NASDAQ: EXAC) shares surged 30.9 percent to $41.88 after the company agreed to be acquired by TPG Capital for $42 per share in cash.
Dextera Surgical Inc (NASDAQ: DXTR) shares climbed 27.6 percent to $0.238 after surging 40.48 percent on Friday.
Petmed Express Inc (NASDAQ: PETS) jumped 21.8 percent to $44.73 as the company reported better-than-expected Q2 results.
SenesTech Inc (NASDAQ: SNES) shares surged 21.7 percent to $1.95 after the company disclosed that Univar will be marketing and selling ContraPest.
Yulong Eco-Materials Ltd (NASDAQ: YECO) shares gained 18.3 percent to $0.560.
One Horizon Group Inc (NASDAQ: OHGI) shares rose 18 percent to $1.18.
Atossa Genetics Inc (NASDAQ: ATOS) shares climbed 18 percent to $0.566. Atossa Genetics is schedule to host a conference call to announce preliminary results from Phase 1 study of oral Endoxifen on October 25, 2017.
ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 15.3 percent to $2.72
Renren Inc (NYSE: RENN) shares gained 11.9 percent to $10.71 after gaining 2.68 percent on Friday.
Kalvista Pharmaceuticals Inc (NASDAQ: KALV) shares rose 11.8 percent to $12.59. KalVista Pharma 13D filing from Longwood Fund showed registration for an 8.7 percent stake.
Xunlei Ltd (NASDAQ: XNET) shares gained 9.4 percent to $7.20 after surging 25.33 percent on Friday.
VF Corp (NYSE: VFC) shares surged 7.1 percent to $71.09 after the company reported upbeat earnings for its third quarter and raised its FY2017 guidance.
CAI International Inc (NYSE: CAI) rose 6.6 percent to $39.70. Cowen & Co. upgraded CAI from Market Perform to Outperform.
Agenus Inc (NASDAQ: AGEN) shares gained 5.7 percent to $4.58 as the company disclosed that GSK's shingle vaccine received FDA approval.
Deltic Timber Corp (NYSE: DEL) shares climbed 5.6 percent to $94.11
- [By Monica Gerson]
ReneSola Ltd. (ADR) (NYSE: SOL) is estimated to report a quarterly loss at $0.04 per share on revenue of $256.05 million.
America’s Car-Mart, Inc. (NASDAQ: CRMT) is projected to post its quarterly earnings at $0.58 per share on revenue of $149.13 million.
- [By Monica Gerson]
ReneSola Ltd. (ADR) (NYSE: SOL) shares rose 9.76 percent to $1.35 in pre-market trading. ReneSola reported Q1 earnings of $0.06 per share on revenue of $260.7 million.