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Top 5 Heal Care Stocks To Buy Right Now

QI just finished reading 6 Reasons to Work Past Retirement Age, which says that for every year you delay taking your Social Security benefits past full retirement age, you get a bump of 8% in your benefit until age 70. My question is, does a person have to delay for a full year for any increase, or is the 8% prorated for each month that a person delays the start of the benefit?

AYou don’t need to wait for a full year to get some credit. Delayed retirement credits are calculated for each month you wait beyond your full retirement age, which is 66 for people born from 1943 to 1954 and gradually rises to age 70 for people born after that. You’ll get an extra 2/3 of 1% for each month you delay after your birthday month, adding up to 8% for each full year you wait until age 70.

Top 5 Heal Care Stocks To Buy Right Now: Power Solutions International, Inc.(PSIX)

Advisors’ Opinion:

  • [By Brent Slava]

    Power Solutions International Inc (NASDAQ: PSIX) shares plunged as much as 30 percent Tuesday on a report the company would be delisting from Nasdaq Inc (NASDAQ: NDAQ).

Top 5 Heal Care Stocks To Buy Right Now: QuickLogic Corporation(QUIK)

Advisors’ Opinion:

  • [By Alex McGuire]

    These are the 10 best penny stocks that have seen the biggest returns over the last week (March 7 – March 14)…

    Penny StockCurrent PriceWeekly Gain (March 7 – March 14)Ocera Therapeutics Inc. (Nasdaq: OCRX)$1.47+147.1%Internap Corp. (Nasdaq: INAP)$3.28+41.4%Soligenix Inc. (Nasdaq: SNGX)$2.94+40%Navios Maritime Partners LP (NYSE: NMM)$2.63+37%QuickLogic Corp. (Nasdaq: QUIK)$2.14+30.5%Adamis Pharmaceuticals Corp. (Nasdaq: ADMP)$4.60+22.7EXCO Resources Inc. (NYSE: XCO)$0.65+20.5%Cyclacel Pharmaceuticals Inc. (Nasdaq: CYCC)$4.38+20.3%Hebron Technology Co. Ltd. (Nasdaq: HEBT)$3.99+19.1%Curis Inc. (Nasdaq: CRIS)$2.85+18.4%

    As a reminder, this is only a tracking metric of penny stocks trading on SEC-regulated exchanges like the Nasdaq and NYSE. Although these top penny stocks are safer than those trading on the pink sheets, we don’t recommend buying any of them without the proper amount of financial research.

  • [By Lisa Levin] Related Mid-Afternoon Market Update: CytomX Therapeutics Climbs Following Bristol-Myers Squibb Partnership; Medgenics Shares Slide 15 Biggest Mid-Day Losers For Monday Cerulean Pharma's (CERU) CEO Chris Guiffre on Cerulean and Dar茅 Proposed Transaction (Transcript) (Seeking Alpha)
    Related Mid-Afternoon Market Update: Cancer Genetics Gains After Q4 Results; Heat Biologics Shares Slide Mid-Day Market Update: Dow Rises Over 50 Points; Tandem Diabetes Care Shares Plunge Tandem Diabetes prices stock offering at $1.25; shares off 19% premarket (Seeking Alpha)
    Cerulean Pharma Inc (NASDAQ: CERU) shares dipped 27 percent to $0.817. Cerulean Pharma shares have dropped 60.28 percent over the past 52 weeks, while the S&P 500 index has gained 15.31 percent in the same period.
    Tandem Diabetes Care Inc (NASDAQ: TNDM) shares tumbled 24.2 percent to $1.17. Tandem Diabetes Care priced 18 million share offering at $1.25 per share.
    Alphatec Holdings Inc (NASDAQ: ATEC) shares fell 21.1 percent to $2.10 as the company reported a $18.9 million private placement.
    Heat Biologics Inc (NASDAQ: HTBX) shares dropped 15.5 percent to $0.870. Heat Biologics priced its 5 million share offering at $0.80 per share.
    Rave Restaurant Group Inc (NASDAQ: RAVE) shares fell 15 percent to $1.76.
    QuickLogic Corporation (NASDAQ: QUIK) shares declined 12.2 percent to $1.58. QuickLogic priced its 10 million share offering at $1.50 per share.
    Orion Engineered Carbons SA (NYSE: OEC) shares dropped 9.5 percent to $19.10. Orion Engineered Carbons reported a 5 million common stock secondary offering.
    Interpace Diagnostics Group Inc (NASDAQ: IDXG) shares fell 8.7 percent to $2.61 after the company reported debt restructuring and agreed to eliminate its royalty and mileston
  • [By Lisa Levin]

    Thursday afternoon, the information technology sector proved to be a source of strength for the market. Leading the sector was strength from QuickLogic Corporation (NASDAQ: QUIK) and Veeco Instruments Inc. (NASDAQ: VECO).

  • [By Lisa Levin]

    QuickLogic Corporation (NASDAQ: QUIK) was down, falling around 10 percent to $2.10. QuickLogic reported a $15 million share offering.

    Commodities

Top 5 Heal Care Stocks To Buy Right Now: Laboratory Corporation of America Holdings(LH)

Advisors’ Opinion:

  • [By Monica Gerson]

    Analysts expect Laboratory Corp. of America Holdings (NYSE: LH) to report its quarterly earnings at $1.96 per share on revenue of $2.19 billion. Laboratory Corp shares rose 0.64 percent to close at $121.77 on Friday.

  • [By Monica Gerson]

    Laboratory Corp. of America Holdings (NYSE: LH) is estimated to report its quarterly earnings at $1.96 per share on revenue of $2.19 billion.

    Roper Technologies Inc (NYSE: ROP) is projected to report its quarterly earnings at $1.46 per share on revenue of $895.87 million.

Top 5 Heal Care Stocks To Buy Right Now: Clarke(t)

Advisors’ Opinion:

  • [By Leo Sun]

    With interest rates set to rise this year, many dividend investors are likely worried that their stocks will slip as bond yields become more attractive. While some dividend stocks will inevitably decline, investors can still find some low-risk income plays that have high yields and cheap valuations. Let’s take a look at three such stocks — AT&T (NYSE:T), Cisco Systems (NASDAQ:CSCO), and Reynolds American (NYSE:RAI).

  • [By WWW.KIPLINGER.COM]

    AT&T Inc. (T) currently yields 4.7% and pays a 48-cents-per-share quarterly dividend. Since 2008, T has been upping its quarterly dividend by $0.01 per year.

  • [By Brian Stoffel]

    It’s important to remember that AT&T (NYSE:T) is more than just the namesake brand. The company also owns DirecTV, and it may soon acquireTime Warner (NYSE:TWX)if regulators approve the deal.

  • [By WWW.THESTREET.COM]

    For those who want a general facsimile of the pay-TV bundle and access to the largest broadcast networks, there’s Sling TV from Dish Network (DISH) , DirecTV Now from   AT&T (T) and Sony’s (SNE) PlayStation Vue. In the coming weeks, they’ll be joined by Alphabet’s (GOOGL) YouTube TV and a still unnamed pay-TV service from Hulu, the video-on-demand service controlled jointly by Disney, Comcast’s (CMCSA) NBCUniversal and 21st Century Fox (FOXA) , along with Time Warner (TWX) holding a 10% stake.

  • [By WWW.MONEYSHOW.COM]

    With a dividend yield of 4.8%, AT&T (T) will continue to be an attractive income investment whether or not the merger with Time Warner (TWX) happens. AT&T recently completed other deals that have increased earnings and strengthened dividend safety.

  • [By Adam Levy]

    As more consumers cut the cord, competition in the pay-TV industry is growing increasingly fierce. That’s led some companies to seek consolidating acquisitions like AT&T (NYSE:T) did last year by buying DIRECTV. Others, meanwhile, have sought to attract subscribers with low-priced bundles and over-the-top packages like DISH Network’s (NASDAQ:DISH) Sling TV.

Top 5 Heal Care Stocks To Buy Right Now: AECOM(ACM)

Advisors’ Opinion:

  • [By Rafi Farber]

    Jack of all trades infrastructure firm AECOM (NYSE: ACM) closed at $27.88 the afternoon everyone thought it would be Clinton by a landslide. Since then, the stock has exploded by 35%. Runs like this for AECOM, while extreme, are not unheard of, as a long-term chart shows quite heavy volatility going back to 2007.

  • [By Jon C. Ogg]

    AECOM (NYSE: ACM) offers architecture and engineering design services and operates through three segments: Design and Consulting Services, Construction Services, and Management Services. It services the transportation, environmental and energy sectors, and it also serves key infrastructure projects such as highways, airports, bridges, wastewater facilities and power transmission and distribution. This puts AECOM right in the major infrastructure investing crosshairs for what you can expect ahead.

  • [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.

     

SA Interview: Merger Arb Investing With Uncorrelated Returns

Uncorrelated Returns manages a global long/short equity hedge fund with particular focus on special situations. We emailed with Uncorrelated Returns about bitcoin, the AT&T (NYSE:T)/Time Warner (NYSE:TWX) deal and an emerging markets internet pair trade.

Seeking Alpha: You focus on special situations in your long/short fund – as special situations investing has been discussed a lot recently in the PRO Weekly Digest, what are examples of the special situations you focus on and more importantly how do you identify and evaluate them?

Uncorrelated Returns: I define special situations in my fund as stocks where mispricing exists because of a specific catalyst or company specific complexity. That means I look at things like merger arbitrage, spin-offs, post-merger integration plays and holding company arbitrage. My mandate is global, so I invest in situations in Europe and Asia as well as the U.S. Given the defined parameters of what Im looking for, I get a steady flow of new ideas from the sell-side, my Bloomberg terminal, Seeking Alpha and a variety of Google alerts.

For merger arbitrage, the potential upside is typically known, so Im evaluating primarily the likelihood of a deal closing, and the downside risk in the event it doesnt. For the former, my starting point is historical precedent, but that is augmented by research into the specific risks (e.g., regulators, CFIUS, shareholder votes) and an assessment of what the potential decision algorithm for each stakeholder is likely to be. Without trying to be overly specific, I try and translate this qualitative judgement into a quantitative probability of closure.

In determining the downside risk (and I follow a similar process with spin-offs etc.), Im really trying to answer the question of what the business is worth on a standalone basis. So I do as much reading as I can on each business to develop a mental model of the economics of the business, its competitive positioning and earnings power. Based on my expectation of earnings, I assign an appropriate valuation multiple to get to a target price. For shorter horizon trades, I tend to lean towards peer valuation multiples, while for longer horizons I might augment this with DCF-type models.

The market is generally pretty efficient, so Ill pull the trigger on an idea only when Im comfortable that there is sufficient reward on offer relative to the risk Im assuming.

SA: Prior to managing a hedge fund you were a highly rated sell-side analyst – how is the buy-side different than the sell-side? What were the best lessons you learned on the sell-side? What do you not miss about it?

UR: The core discipline of researching and valuing a business is the same. However, on the buy-side I have a much greater breadth of coverage (vs. a single sector to follow as an analyst), which by implication means that I cant have the depth of knowledge on every situation that I would have had on the sell-side. Possibly the biggest difference is the level of emotional investment required – as a fund manager I am living and breathing my portfolio constantly, and in my experience its a lot more difficult to switch off than when I was on the sell-side. The upside is I dont have to deal with some of the drudgery of working for a large bank, and dont have to spend as much of my day on the phone marketing my views. I miss writing though, so Seeking Alpha is a bit of an outlet for me!

SA: You made an excellent call on Brocade (NASDAQ:BRCD) – can you discuss your approach to merger arb? How do you narrow down the entire universe of pending deals to a smaller number that you look at more in-depth and finally to a few that you actually act on? How do you evaluate/reduce risk and size positions?

UR: I look at a global universe of announced mergers and acquisitions as my starting point, and quite simply prioritize my research according to the absolute and annualized return embedded in the spread (i.e. the difference between the market price and the transaction price). Typically I gravitate towards deals with double-digit annualized returns. Im happy to trade off duration for higher absolute returns, because the smaller the absolute return the more sensitive the trade is to execution risks.

For most of the deals Im invested in its pretty clear exactly what the key risk is – for instance, for Brocade it was obtaining CFIUS clearance. It would be na茂ve to think one could underwrite these risks with decimal point specificity, so one approach I often take is to back what the market is implying the probability of closure to be, and then subjectively test that for reasonableness. In the Brocade example, I estimated that the market was assigning less that a 2/3rds chance of the deal being completed, which intuitively felt too low to me given all the facts at hand.

Using my own estimates for downside risk and likelihood of deal completion, I calculate an expected value, or probability weighted price. If the expected value is sufficiently higher than the market price, Im happy to invest.

I size my positions using a proprietary formula that primarily uses the expected downside on a deal break to cap my potential loss per position but weighted for the likelihood of the deal closing.

SA: As a follow up, does the DoJ suit create an opportunity in the AT&T/Time Warner deal or is this a legitimate threat to it closing?

UR: It would be na茂ve to suggest a suit by the DoJ is not a material threat to any deal! Nevertheless, I like the risk/reward on TWX. At current levels there is about 18% upside if the deal closes, or 37% annualized if it closes in the middle of the year. The downside risk in my view is hardly overwhelming – TWX will likely earn around $6.50 in 2018; peers like DIS, FOX, CBS and CMCSA trade between 12x and 19x P/E multiples. While not a perfect comparison, putting TWX on a fairly conservative 13x multiple puts the break price at $85, around 6% lower than today. The market is therefore assigning a 1 in 4 chance of the deal completing. Despite its size and political angle, this is a vertical merger with no precedent for being blocked. Im not a lawyer, but my laymans view is that AT&T has a very strong case, and the likelihood of prevailing is significantly higher than 25%. I am long TWX.

SA: Can you walk us through your emerging markets internet pair trade involving Naspers (OTCPK:NPSNY) and Tencent (OTCPK:TCEHY) and how it could generate superior risk-adjusted returns?

UR: Naspers owns 33% of Tencent, the Chinese internet juggernaut. With the massive rally in large cap tech stocks this year, the Naspers share price has struggled to keep up with the gain in Tencent, and as a result trades at close to a 40% discount to the value of its Tencent stake. The rest of the business – a high-quality portfolio of media and internet assets that I believe are worth around $18bn – is valued at negative $40bn. Unlike Altabas (NASDAQ:AABA) holding of Alibaba (NYSE:BABA), there is no material tax leakage to consider for Naspers, so the discount is wildly excessive. The key driver for the discount is technical in nature – a combination of capital outflows from South Africa and significant index reweighting has weighed on Naspers relative to Tencent this year; looking ahead these technical flows should dissipate at a time when the stub assets start to deliver earnings growth ahead of Tencent. I believe this combination of factors should drive a relative rerating of Naspers over the next year. While Im a believer in Tencent, clearly its share performance is correlated with the FANG stocks, and hence the market; a pair trade is likely to be uncorrelated, and should the FANGs roll over, will likely do even better.

SA: What are your thoughts on Bitcoin, especially as now investors can trade futures (and more efficiently express a long or short view)?

UR: With the exception of illicit trade and circumventing foreign exchange controls in emerging markets, Bitcoin strikes me as a solution in search of a problem. The futures market may help dampen some of the volatility weve seen, but its early days. There are a lot of new buyers of Bitcoin purchasing purely on the fear of missing out. I have no view on when the bubble will burst or how high it will soar before it does, but certainly I see no fundamental reason to own any.

SA: Whats one of your highest conviction ideas right now?

UR: I still like Sky (OTCQX:SKYAY), the British satellite TV operator that is being bought by Fox. The stock has appreciated by 10% since I first wrote about it, but still offers a double-digit IRR. The deal is being reviewed by the Competition and Markets Authority in the UK to determine firstly whether Fox would be a fit and proper holder of a broadcast license, and secondly whether ownership limits in the news media would be compromised (given the Murdochs ownership of UK newspapers through News Corporation (NASDAQ:NWS) (NASDAQ:NWSA). On both of these points we remain confident that the deal will clear.

Whats changed since my article is Disneys announced acquisition of Fox. Foxs offer for Sky is unaffected, but should it fail (and Disney completes the Fox deal), a mandatory offer from Disney for Sky will be triggered. So either way, the deal gets done. While the CMA will review the current deal on its existing merits, having Disney in the background removes much of the political heat for the Culture Secretary, so reduces the likelihood of political interference in the process. So the original deal is still attractive, and the presence of Disney provides a credible backstop.

***

Thanks to Uncorrelated Returns for the interview. If you’d like to check out or follow their work, you can find the profile here.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Check with individual articles or authors mentioned for their positions. Uncorrelated Returns is long Sky and TWX.

SeekingAlphaAbout this article:ExpandAuthor payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.Tagged: Investing Ideas, Long Ideas, Services, CATV Systems, Editors’ Picks, Interviews, United KingdomWant to share your opinion on this article? Add a comment.Disagree with this article? Submit your own.To report a factual error in this article, click here

Fridays Vital Data: Time Warner Inc. (TWX), Wells Fargo & Co (WFC) and Vale S.A. (ADR) (VALE

U.S. stock futures are headed for record territory in the last day of trading before Christmas. Wall Street is continuing to cheer the passage of the Republican tax plan, which only needs President Donald Trump’s signature to become law. Already, AT&T Inc. (NYSE:T) and Wells Fargo & Co (NYSE:WFC) have pledged to raise wages and pay out bonuses if the legislation is signed this year.

Friday’s Vital Data: Time Warner Inc. (TWX), Wells Fargo & Co (WFC) and Vale S.A. (ADR) (VALE)Meanwhile, traders will be flooded with data before leaving to spend time with their families. Economic reports today include durable goods orders, core capital orders, personal income, and consumer spending and core inflation for November, as well as November new-home sales and the December consumer sentiment reading.

Heading into the open, futures on the Dow Jones Industrial Average are down 0.01%, S&P 500 futures have added 0.02% and Nasdaq-100 futures have lost 0.02%.

Options volume was below average on Thursday, as many traders appear to have already left for home. Overall, about 15.6 million calls and 11.7 million puts changed hands on the session. The CBOE single-session equity put/call volume ratio heald at 0.56 and the 10-day moving average ticked lower to 0.56, yet another 52-week low.

Drilling down on Thursday’s options activity, Time Warner Inc (NYSE:TWX) attracted several large call blocks yesterday, with one spread betting heavily on a successful buyout from AT&T. Meanwhile, options traders are signaling that Wells Fargo may be an underdog banking stock following the passage of the Republican tax plan, and Vale S.A. (ADR) (NYSE:VALE) trades ex-dividend today.

Friday’s Vital Options Data: Time Warner Inc. (TWX), Wells Fargo & Company (WFC) and Vale S.A. (VALE)investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-300×138.png 300w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-200×92.png 200w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-400×184.png 400w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-109×50.png 109w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2017/12/12-22-2017-Top-Ten-Options-170×78.png 170w” sizes=”(max-width: 546px) 100vw, 546px” />

Time Warner Inc. (TWX)

Since the deal was announced last year, TWX stock has bounced around well below AT&T’s proposed purchase price of $107.50 per share. Uncertainty is the main reason for TWX not rallying to within reach of AT&T’s offer, with Justice Department scrutiny and the current lawsuit remaining a cloud over the deal.

However, optimism that the deal will go through has risen in recent weeks, and TWX options traders are beginning to bet on a positive outcome. TWX volume yesterday rose to over 193,000 contracts, or more than four times the stock’s daily average. Calls gobbled up 73% of the day’s take.

One trader took that optimism to another level, however. According to Trade-Alert.com, blocks totaling 30,000 contracts and marked “spread” traded on each of TWX’s July $82.50 put, $95 call and $105 call. The $95 calls purchased, while both the other contracts were sold. The total outlay for this spread was $1.34, or $134 per trio of contracts.

Assuming these contracts crossed as marked, and were a spread, the trader could pocket $866 per contract if TWX trades at or above $105 when July options expire — a strike that is just below AT&T’s purchase price.

Wells Fargo & Company (WFC)

WFC stock was left behind in the banking sector’s tax-plan driven run higher this year. The shares have added a mere 15% compared to the Financial Select Sector SPDR ETF’s (NYSE:XLF) gain of roughly 30%. But WFC stock traders are beginning to finally come around as the tax plan heads toward implementation. In fact, analysts at Buckingham upgraded WFC to “buy” from “neutral” on the news, lifting WFC’s price target to $75 from $57.

Options traders were also in a bullish mood yesterday. Volume on WFC rose to 145,000 contracts, with calls making up 81% of the day’s take. There is still some acceptance to be had among speculative traders, as the January 2018 put/call open interest ratio rests at an elevated reading of 0.81 for WFC. That reading should drop sharply in the coming weeks, however, as more traders realize the potential upside for WFC stock following the tax plan’s passage.

Vale S.A. (VALE)

It’s ex-dividend day for Vale. The Brazilian mining company is set to pay out a quarterly dividend of 9.8 cents per share on March 22, 2018. Shareholders of record by the close last night are eligible for the dividend payout.

As a result, VALE stock was flooded with call activity yesterday, as options traders sought to capture the quarterly payout. Volume topped 163,000 contracts, and calls accounted for 93% of the overall activity. Options traders typically buy in-the-money calls as a way to gain control of a stock ahead of its ex-dividend date, resulting in heavy dividend-capture activity the day prior.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Dividend Monster AT&T Inc. Is Nearing Major Resistance

AT&T Inc. (NYSE:T) has been on fire, rallying over 15% since November 1. However, T stock price is still down more than 9% so far for 2017. So is it time to get in on this recent momentum or take a pass on the telecom giant?

Let’s look at the chart first.

Trading T Stock Price

AT&T certainly has positives, but its chart is anything but pretty. T stock price made a bullish move when it was able to reclaim the $35 mark. Above that and it was a reasonable long. However, now pushing into the $39 level, T stock enters some serious resistance.

Chart of T stock priceinvestorplace.com/wp-content/uploads/2017/12/T-768×574.png 768w, investorplace.com/wp-content/uploads/2017/12/T-40×30.png 40w, investorplace.com/wp-content/uploads/2017/12/T-200×150.png 200w, investorplace.com/wp-content/uploads/2017/12/T-400×300.png 400w, investorplace.com/wp-content/uploads/2017/12/T-116×87.png 116w, investorplace.com/wp-content/uploads/2017/12/T-100×75.png 100w, investorplace.com/wp-content/uploads/2017/12/T-167×125.png 167w, investorplace.com/wp-content/uploads/2017/12/T-67×50.png 67w, investorplace.com/wp-content/uploads/2017/12/T-78×58.png 78w, investorplace.com/wp-content/uploads/2017/12/T-800×598.png 800w,https://investorplace.com/wp-content/uploads/2017/12/T-160×120.png 160w, investorplace.com/wp-content/uploads/2017/12/T.png 900w” sizes=”(max-width: 300px) 100vw, 300px” />
Click to Enlarge

This isn’t a temporary level, either. This $39 to $40 region has been both support and resistance over the last 20 months or so. To get above it would be a huge win for the bulls. If traders are looking to add T stock to their portfolio now, it may be best to wait. I’d wait for AT&T to either pullback or break through this current level.

Further, you’ll see that the MACD (yellow circle) is nearing a points where, historically speaking, it tends to exhaust itself. Further, the Relative Strength Index (blue circle) is nearing an overbought state. T stock has approached $39 two other times since August with an RSI reading similar to its current levels. The odds favor a pullback or at the very least some consolidation.

The Fundamentals for T Stock

We recently took a look at who the holiday winners might be in the telecom space. Because Verizon Communications Inc. (NYSE:VZ) was strangely not offering a buy-one get-one (BOGO) deal for the new Apple Inc. (NASDAQ:AAPL) iPhone, AT&T and T-Mobile Us Inc (NASDAQ:TMUS) were the likely winners.

AT&T’s BOGO offer wasn’t quite as good at T-Mobile’s, but it was likely enough to still attract new subs. That should bode well for its fourth-quarter results. Let’s hope that’s the case, as expectations for 2017 aren’t that great. Presently, analysts expect sales to contract 2.2% this year before growing just 20 basis points in 2018.

While positive revenue growth forecasts for 2018 are an improvement, it comes at a cost. Earnings growth of 2.5% in 2017 will slip to just 0.3% in 2018. But no one is buying T stock for the earnings and revenue growth. If investors want that, it’s best to look at T-Mobile. (The story we linked to above sheds light as to why.)

Instead, it’s about a low valuation and fat dividend yield. In fact, just a few days ago, T stock increased its quarterly dividend by 2% to 50 cents per share. While 2% is a small bump, the move marks AT&T’s 34th consecutive year of a higher payout. That’s something that many income investors can hang their hat on. They can count on AT&T — which now pays out 5.2% — to continue paying out that dividend for years and years to come.

To make matters even better, T stock price trades at just 13 times 2018 earnings estimates. Despite its near-zero growth, this is a low valuation for such a big, dependable dividend yield.

Bottom Line on T Stock

Through the first nine months of fiscal 2017, AT&T has a free cash flow dividend payout ratio of 70.5%. This figure is up from 66.8% during the same period a year ago. It basically means that 70% of T’s free cash flow covers the dividend. On the plus side, T stock’s dividend is covered simply by the free cash flow generated by the business. On the downside, this figure is up almost 400 basis points year-over-year. This will widen even more with the recent dividend hike.

While that’s something to keep an eye one, so too is AT&T’s pending acquisition of Time Warner Inc (NYSE:TWX). Should the company lock in Time Warner, it will add a whole host of content and free cash flow to its current business. While the roughly $85 billion deal is a biggie, many believe it will be favorable to AT&T.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

 

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Top Heal Care Stocks To Buy Right Now

Great American Parent Explains Annuity Unit to Wall Street

5 Things for Agents to Know About the Senate Health Bill

The EEO-1 Reporting Requirements Are Changing

(Bloomberg) — At least three Republican senators said they would vote to block the Better Care Reconciliation Act bill, the current version of their party’s health care bill, from advancing, endangering Majority Leader Mitch McConnell’s plan to change the Affordable Care Act.

Republican Susan Collins of Maine late Monday said she would vote against a key procedural step, joining Rand Paul of Kentucky and Dean Heller of Nevada.

(Photo: Thinkstock)

Copyright 2017 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Better Care draft Section 206 might, or might not, let states change Affordable Care Act rules.

Top Heal Care Stocks To Buy Right Now: Catalyst Pharmaceuticals, Inc.(CPRX)

Advisors’ Opinion:

  • [By William Romov]

    Before we show you our pick, here are the top 10 penny stocks to watch this week

    Penny Stock Current Share Price Nov. 27-Dec. 1 Gain (as of Dec. 1)
    Pyxis Tankers Inc. (Nasdaq: PXS) $4.10 122.83%
    Ohr Pharmaceuticals Inc. (Nasdaq: OHRP) $1.28 68.42%
    Cerecor Inc. (Nasdaq: CERC) $1.74 47.46%
    Proteostasis Therapeutics Inc. (Nasdaq: PTI) $2.52 37.71%
    UT Starcom Holdings Corp. (Nasdaq: UTSI) $5.20 37.20%
    WMIH Corp. (Nasdaq: WMIH) $0.96 33.46%
    PhaseRx Inc. (Nasdaq: PZRX) $0.90 30.29%
    Bellerophon Therapeutics Inc. (Nasdaq: BLPH) $2.04 29.94%
    EV Energy Partners LP (Nasdaq: EVEP) $0.86 27.76%
    Catalyst Pharmaceuticals Inc. (Nasdaq: CPRX) $4.40 25.71%

    FREE PROFIT ALERTS: Get real-time recommendations on the best penny stock opportunities the moment we release them. Just sign up here, its completely free

  • [By Lisa Levin]

    Shares of Catalyst Pharmaceuticals Inc (NASDAQ: CPRX) got a boost, shooting up 32 percent to $1.54 after the company reported positive data from investigator-sponsored trial of Firdapse.

Top Heal Care Stocks To Buy Right Now: Clarke(t)

Advisors’ Opinion:

  • [By Laurie Kulikowski]

    After a year of stock price fluctuations, the net result is that T’s price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don’t lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock’s price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

     

  • [By Paul Ausick]

    AT&T Inc. (NYSE: T) dropped about 1.4% Tuesday to post a new 52-week low of $35.87 after closing Monday at $36.39. The 52-week high is $43.50. Volume was around 5.8 million shares traded, nearly 10 times the daily average of around 600,000. The company had no specific news.

  • [By Elizabeth Balboa]

    It’s happened to AT&T Inc. (NYSE: T). It’s happened to Citigroup Inc (NYSE: C). It’s happened to Chevron Corporation (NYSE: CVX), General Motors Company (NYSE: GM) and Sears Holdings Corp (NASDAQ: SHLD)'s predecessor Sears, Roebuck & Co.

  • [By Adam Levy]

    Americans are changing the way they watch television. More and more customers are showing interest in over-the-top streaming TV services. Over 200,000 people joined AT&T’s (NYSE:T) DirecTVNow in about one month. DISH Network’s (NASDAQ:DISH) Sling TV has over 1 million subscribers. Sony’s (NYSE:SNE) PlayStation Vue is also very popular.

Top Heal Care Stocks To Buy Right Now: Apache Corporation(APA)

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team say Apache’s (APA) mixed results are a buying opportunity. Find out what they’re telling their investment club members with a free trial subscription to Action Alerts PLUS.

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team say news and caution are weighing on energy and health-care sectors. Find out what they’re telling their investment club members about Apache (APA) , Cimarex (XEC) , Arconic (ARNC) and Allergan (AGN) with a free trial subscription to Action Alerts PLUS.

  • [By Lee Jackson]

    These companies also reported insider buying last week: Apache Corp. (NYSE: APA), Halliburton Co. (NYSE: HAL), Revlon Inc. (NYSE: REV), Valeant Pharmaceuticals International Inc. (NYSE: VRX) and U.S. Steel Corp. (NYSE: X).

Top Heal Care Stocks To Buy Right Now: Costco Wholesale Corporation(COST)

Advisors’ Opinion:

  • [By Teresa Rivas]

    Costco (COST) is lower after hours, following its mixed first-quarter earnings report.

    Costco said that it earned $1.24 a share, a nickel ahead of analysts expectations.

    Its revenue of $28.1 billion was slightly below the $28.3 billion analysts were expecting. However, it was above the $27.5 billion it said that it expected to earn in its Nov. 30 pre-announcement.

    Costco is down 1% to $152.36 after hours, after closing up 1.9% during regular trading. The shares are down 4.7% year to date.

  • [By Dan Caplinger]

    Costco Wholesale (NASDAQ:COST) has produced long-term success that most of its retail peers can only wish they had. Yet even though the company’s warehouse retail business model has proven tougher than expected to emulate, Costco still has had to deal with the negative impact from online competition and a change in the way people like to shop. Costco will release its fiscal second-quarter financial report on Thursday, March 2, and investors want to see continued gains in sales and earnings that will prove that the warehouse retailer’s business is still healthy.

  • [By Dan Caplinger]

    The retail industry has gone through major disruptions lately, and even warehouse giant Costco Wholesale (NASDAQ:COST) hasn’t been immune to the difficult conditions. Yet last quarter, Costco said that it would implement membership-fee increases as of the beginning of June in an attempt to bolster a key source of revenue, and it hoped that improving conditions in the consumer economy would lead to better shopping results.

  • [By Chris Lange]

    Costco Wholesale Corp. (NASDAQ: COST) is seen in many consumers eyes as one of the best values out there, whereas Whole Foods has had trouble shaking its Whole Paycheck moniker. But this could change after the acquisition. The question is how Whole Foods value proposition changes relative to Costco once Amazon is in control. In other words, how much will Whole Foods lower prices?

  • [By Elizabeth Balboa]

    As tech falls, the once-forsaken shares of Gap Inc (NYSE: GPS), Macy’s Inc (NYSE: M), L Brands Inc (NYSE: LB), Costco Wholesale Corporation (NASDAQ: COST) and AT&T Inc. (NYSE: T) are surging.

  • [By Ben Levisohn]

    Costco Wholesale (COST) has risen 9% during the past 12 months of trading, less than half the S&P 500′s 21% gain during the same period. But that underperformance didn’t stop Barron’s Teresa Rivas from urging investors to “put Costco in your shopping cart” in December, or Oppenheimer from calling Costco one of the most intriguing names in large-cap retail last week. Now Goldman Sachs analyst Matthew Fassler and team have added Costco to the firm’s Conviction List, while reiterating their Buy rating. They explain why:

    Getty Images

    We believe the company is on the cusp of the earnings acceleration we cited when we upgraded the stock to Buy last spring, aided by its recent credit card deal both the incremental traffic associated with more attractive cashback incentives and expense cushion associated with new terms. We also like the firms attractive positioning as a low-cost/low-priced operator in the challenging retail environment. Our estimates stand above consensus. The stock is trading below long-run relative P/E averages despite the anticipated earnings recovery. Our $187, 12-month price target implies 14% upside.

    Shares of Costco Wholesale aren’t getting a boost from the upgrade this morning, however. Its shares have dipped 0.2% to $163.98 at 10:17 a.m. today.