Yahoo! (YHOO) tumbled to the bottom of the S&P 500 today after the internet company reported another data breach,calling into question its merger with Verizon Communications (VZ).
Yahoo!’s Sunnyvale, California campus. Yahoo! Inc.
Yahoo!dropped 6.1% to $38.41 today, while the S&P 500 rose 0.4% to 2,262.03. Verizon Communications advanced 0.4% to $51.82.
Evercore ISI’s Ken Sena and team contend the impact from the hacking is already priced in:
As news further breaks that Verizon could be looking to scrap its proposed $4.83bn acquisition of Yahoo over the latest account hack (this time over 1bn accounts), we are adding that our own checks on the matter suggest that Verizon still sees a strong fit for Yahoo within their digital strategy and Yahoo indicated that Verizon had advanced knowledge of the circumstances pertaining to the recent hacking incident. Now, whether Verizon can find a way to absolve themselves from the liability of the hack, or simply receive a pricing concession, remains less clear. Nevertheless, Yahoos core business represents only 10% of our Yahoo target price of $39. Therefore, assuming a 20% lower value on the core, we are talking a 2% reduction in Yahoo shares. Further, with a 5% sell-off today, which in part reflects weakness in broader China equities, we see the hacking news as priced in. Moreover, as we weigh this news against the potential for a more favorable tax-rate assumption around Yahoos 15% stake in Alibaba (BABA), given some of the President-Elects stated tax reform objectives, we do not see reason to lower our target price on Yahoo! further…Our $39 target price is unchanged.
penny stock blog: SandRidge Mississippian Trust II(SDR)
- [By Paul Ausick]
Sandridge Mississippian Trust II (NYSE: SDR) dropped about 18% Monday to post a new 52-week low of $0.75 after closing at $0.95 on Friday. The 52-week high is $1.79. Volume was around 1.3 million, more than nine times the daily average of around 160,000. The company had no specific news.
penny stock blog: National Grid Transco, PLC(NGG)
- [By Travis Hoium]
National Grid (NYSE:NGG) came out with some interesting information last week, saying 2.4 GW of distributed solar was added in the U.K. between February 2016 and February 2017 and another 1.5 GW is expected in the next year. The U.K. isn’t exactly a hotbed for solar activity, but it’s growing as an important market.
- [By WWW.MONEYSHOW.COM]
Among utilities, National Grid (NGG) is my best pick for 2017, as it’s an almost perfect hedge against uncertainty. It’s insulated from changes in government interest rates. It can be both an inflation hedge and a play on a strong dollar.
- [By Tyler Crowe, Dan Caplinger, and Neha Chamaria]
We asked three of our contributors to highlight a stock they see as a dividend stock to buy in February. They responded with automaker Ford Motors (NYSE:F), oil and gas logistics company Enterprise Products Partners (NYSE:EPD), and electricity transmission specialist National Grid (NYSE:NGG). Here’s a quick run-down as to why investors should take a look at these high-yield stocks.
- [By Lisa Levin]
Tuesday afternoon, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from National Grid plc (ADR) (NYSE: NGG) and Dominion Resources, Inc. (NYSE: D).
penny stock blog: Roadrunner Transportation Systems, Inc(RRTS)
- [By Dan Caplinger]
Tuesday was another down day for the Dow Jones Industrials, which fell more than 100 points to drop further below the 20,000 level. But broader market measures were mixed, and the Nasdaq Composite even managed to gain ground. Continued uncertainty about the impact of new policies from the U.S. federal government have kept markets a bit turbulent, and the beginning of a two-day meeting of the Federal Reserve’s Open Market Committee could set the tone for monetary policy in 2017. Some stocks had bad news that sent them lower today, and among the worst performers were Seadrill (NYSE:SDRL), Roadrunner Transportation Systems (NYSE:RRTS), and Tempur Sealy International (NYSE:TPX). Below, we’ll look more closely at these stocks to tell you why they did so poorly.
penny stock blog: Yingli Green Energy Holding Company Limited(YGE)
- [By Spencer Israel]
Axiom Capital Managing Director Gordon Johnson upgraded the entire alternative energy sector from Market Underweight to Market Overweight and upgraded SolarCity Corp (NASDAQ: SCTY) from Sell to Hold and Trina Solar Limited (ADR) (NYSE: TSL), Yingli Green Energy Holding Co Ltd (ADR) (NYSE: YGE) and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO) from Sell to Buy.
- [By Monica Gerson]
Yingli Green Energy Holding Co Ltd (ADR) (NYSE: YGE) is expected to post a quarterly loss at $1.48 per share on revenue of $372.30 million.
Ameren Corp (NYSE: AEE) is estimated to post its quarterly earnings at $0.38 per share on revenue of $1.51 billion.
- [By Wayne Duggan]
Despite the potentially positive recent developments for solar investors, Johnson remains extremely bearish on solar stocks. Axiom maintains Sell ratings on the following U.S.-listed names:
JA Solar Holdings Co. Ltd. (ADR) (NASDAQ: JASO) Yingli Green Energy Holding Co Ltd (ADR) (NYSE: YGE) Solaredge Technologies Inc (NASDAQ: SEDG) Canadian Solar Inc. (NASDAQ: CSIQ)
Related Link: Politics Here And Abroad: Muted Market Volume Amid Comey’s Testimony And UK’s Election
Image Credit: Screengrab from “Trump Makes Statement On Paris Accord” By The White House [Public domain], via Wikimedia Commons