China’s richest man isn’t worried about economic slowdown China has dismissed its top market regulator after a series of policy missteps that contributed to a massive stock selloff.
Xiao Gang, chairman of the China Securities Regulatory Commission, was removed from his post, state-run Xinhua news agency reported.
He was replaced by Liu Shiyu, head of the Agricultural Bank of China, a giant bank owned by the Chinese government.
The Shanghai Composite has shed 19% this year after the CSRC implemented a circuit-breaker mechanism to try to protect small investors from big market swings. Instead of offering protection, it created panic selling and had to be withdrawn.
Top 10 Bank Stocks To Watch Right Now: Chipotle Mexican Grill Inc.(CMG)
Advisors’ Opinion:
- [By Brian Withers]
I started investing with my kids in 2004 because I wanted them to experience the benefits and lessons of long-term investing. They loved Chipotle (NYSE:CMG) burritos, so it was no surprise it was one of their stock picks early on in Chipotle’s growth story. I liked the growing store base and superior store-level margins, so we all bought shares.
- [By Asit Sharma]
The great southern writer Flannery O’Connor titled her final short story collectionEverything That Rises Must Converge. But the stock market teaches us that a related, opposing corollary is also often true: Every great stock that falls must converge — with the valuation of its peers, that is.
Take Chipotle Mexican Grill(CMG), which has witnessed its forward one-year price-to-earnings (PE) ratio shrink 35% from nearly 37 to 24 in the span of just 12 weeks, due to its much publicized E. coli and norovirus food contamination crises.
Chipotle’s valuation has converged with former parent McDonald’s Corporation’s forward P/E ratio of 23. It’s also converging with the average for the sleepy, large-cap, consumer-oriented stocks in the S&P 500 Consumer Staples sector, which collectively hold a one-year forward P/E of 20.
This valuation range is compelling because it reflects the market’s assumption that Chipotle will experience a dramatic curbing of growth next year. And from everything we know today, that certainly appears to be the case.
But this temporary convergence is the long-term investor’s opportunity. At the moment, there is no single competitor with Chipotle’s scale and product quality which can quickly step in and supplant the company from the niche it has dominated for several years. If Chipotle can fix its food supply issues, any lost market share is its own to regain.
And the Mexican-themed chain has already proven that it can expand aggressively. The 2016 store opening schedule (still unrevised, although I believe it will be dialed back slightly early this year) calls for an 11.5% expansion of Chipotle’s locations in a single year.
So if Chipotle regains consumer trust — and I believe this very capable management team will succeed in doing so — its stock has the significant possibility to rebound to a much higher multiple, in line with the company’s historic growth potential. This resurgence might not occur in 2016. But Foolish investors know that the best investments take time.
- [By Casey Wilson]
Unfortunately, there were a lot of disappointing companies to choose from. We picked the worst of the worst. Check out our list of the most-hated companies of 2016…
Most-Hated Companies 2016 No. 5: Chipotle Mexican Grill Inc. (NYSE: CMG)
Chipotle’s problems all started in July 2015 with an E. coli outbreak…
- [By Rick Munarriz]
Just when you thought that a return to positive comps would spell an end to the giveaways thatChipotle Mexican Grill(NYSE:CMG)sprinkled through 2016, the former fast-casual darling is back with another online game where everybody’s a winner.
Top 10 Bank Stocks To Watch Right Now: GlaxoSmithKline PLC(GSK)
Advisors’ Opinion:
- [By Sean Williams]
Shares of Innoviva (NASDAQ:INVA), a biotechnology royalty company that develops respiratory therapeutics and is perhaps best known as GlaxoSmithKline’s (NYSE:GSK) development partner for its multiple next-generation COPD and asthma products, fell as much as 11% on Thursday. The reason behind Innoviva’s bad day can be traced to a proxy battle with activist hedge fund Sarissa Capital Management over seats on its board.
- [By WWW.MONEYSHOW.COM]
Donald Trump understands how regulation harms both businesses and consumers, discouraging innovation and raising costs. In a recent news conference, he pledged to “cut regulations by 75%, maybe more.” This is good news indeed for drug companies like GlaxoSmithKline (GSK).
- [By Sean Williams]
Third, in late March, Mylan announced that the Food and Drug Administration had rejected its application to market a generic version of GlaxoSmithKline’s (NYSE:GSK) blockbuster asthma and COPD inhalable drug, Advair. GlaxoSmithKline’s Advair lost patent protection more than six years ago, but only within the past couple of years did the FDA lay out a course for generic drug producers to follow in order to get a generic version of the drug approved. Meanwhile, Glaxo still enjoys blockbuster sales of Advair as generic versions of the drug have yet to hit the market.
- [By Keith Speights]
Gilead’s primary rival in the HIV market is Viiv Healthcare, which is majority-owned byGlaxoSmithKline (NYSE:GSK).The company recently announced positive results from a late-stage clinical study of its HIV drug Tivicay combined with Johnson & Johnson’s Edurant.
- [By WWW.THESTREET.COM]
In the Lightning Round, Cramer was bullish on GlaxoSmithKline (GSK) , Chubb (CB) , XPO Logistics (XPO) , FedEx (FDX) and Nordson (NDSN) .
Cramer was bearish on Prudential (PRU) , Advanced Semiconductor Engineering (ASX) and ZTO Express (ZTO) .
Top 10 Bank Stocks To Watch Right Now: Wells Fargo & Company(WFC)
Advisors’ Opinion:
- [By Jeremy Bowman]
As for individual stocks,Wells Fargo(NYSE:WFC) was the leader among the big banks that posted earnings today, which also includedJPMorgan ChaseandBank of America.
- [By J.B. Maverick]
Stocks in the financial sector should benefit from the Federal Reserve’s interest rate increase, and Wells Fargo & Company (NYSE: WFC) is perhaps the best positioned of the U.S. major money center banks to continue showing good overall returns to investors. As of January 2016, it stands at the head of the pack in terms of ROE at 13%, compared to both its major competitors and to the industry average of 7.8%. Its net margin of 25.2% also substantially outperforms the industry average of 17.5%. Projected EPS growth for 2016 is 8.89%. Wells Fargo also offers the highest dividend yield of the major money center banks, at 3.02%, which is more than twice Bank of America’s 1.48% and six times greater than Citigroup’s lowly 0.5%.
- [By Sarfaraz Khan]
In addition to this, Warren Buffett has also built sizable positions in a number of major US banks.Wells Fargo (NYSE:WFC), U.S. Bancorp (NYSE:USB)and Goldman Sachs (NYSE:GS)have the leading positions in Berkshire Hathaways portfolio. In fact, Wells Fargo is Berkshire Hathaway’s second largest stock holding. In addition to this, Berkshire Hathaway also owns $5 billion worth of Bank of Americas preferred shares and warrants to buy 700 million of the banks ordinary shares at just $7.14 (current price $22.10) anytime until September 2021. These banks are positioned to become the biggest beneficiaries of the increase in interest rates. To get an idea of how this might happen, consider Bank of Americas forecast in which it predicted a $7.5 billion boost to annual net interest income following a 1-percentage-point increase in interest rates.
Top 10 Bank Stocks To Watch Right Now: E*TRADE Financial Corporation(ETFC)
Advisors’ Opinion:
- [By WWW.THESTREET.COM]
Franklin Resources (BEN) : “I’d rather see you in Morgan Stanley (MS) or E*TRADE Financial (ETFC) .”
Kinder Morgan (KMI) : “They are OK now, but there are better ones.”
- [By Dan Caplinger]
Meanwhile, E*Trade (NASDAQ:ETFC) decided to split the difference. Effective March 13, E*Trade’s commission structure will get split in two. Base rate customers will see their commissions fall from $9.99 to $6.95 per trade, matching TD Ameritrade. However, E*Trade created a new structure for active traders, defined as those who execute 30 or more trades every three months. For those customers, E*Trade will have $4.95 per trade commissions, and options charges will fall by a third, to $0.50 per contract. CEO Karl Roessner said that although “an exceptional customer experience is far more important to traders and investors than price, with our new commission structure, we are able to reward our most active equity and derivative traders and investors.”
- [By Jon C. Ogg]
E*Trade Financial Corp. (NASDAQ: ETFC) was up another 1.6% at $32.97. Ithas a total market cap of $9 billion, and over the past five trading days the stock has gained 17%. Shares of Morgan Stanley (NYSE: MS) were last seen at $39.09, up 17% in the past fivetrading days. The market cap is$74.7 billion.
- [By Chris Neiger]
This article will walk your through all the steps for setting up an individual E*TRADE (NASDAQ:ETFC) brokerage account, which should only take about five to 10 minutes to complete. If you want to compare offers from other brokers, or view their features, check out ourbroker comparison page.
Top 10 Bank Stocks To Watch Right Now: PACCAR Inc.(PCAR)
Advisors’ Opinion:
- [By JPMorgan]
We are Neutral on PCAR as the company faces the risk of both lower volume and margin pressure from declining demand in its core NA HD truck business in 2016. However, we believe PCAR should command a premium valuation due to its track record of solid execution. In addition, PCAR pays out a normal and a special dividend which, in total, should equal ~50% of net income and currently offers a yield of 4.1% (JPMe total payout of ~$2.12/share) making it potentially attractive to income-oriented investors.
- [By Jim Cramer]
The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, PACCAR INC’s return on equity exceeds that of both the industry average and the S&P 500.
- [By Vikram Nagarkar]
NVIDIA has also recently announced several partnerships lately, like the one with Microsoft,dubbed Olympus, aimed at maximizing GPU performance for data centers. Then there are also other partnerships in the self-driving cars space, like the one with Bosch, and another one with PACCAR (NASDAQ:PCAR), to develop autonomous trucks. Of course, most of these partnerships will most likely take a while before they can translate to any monetary benefits for NVIDIA. What these deals do, though, is reinforce NVIDIA’s grip over this market, which even pushed Intel (NASDAQ:INTC)to acquire Mobileye (NYSE:MBLY), to build a presence in this space. Mobileye is the company that lost business from Tesla Inc (NASDAQ:TSLA)to NVIDIA last year. Putting that aside, more importantly, the price that Intel is paying to acquire Mobileye has indirectly pointed to the fact that NVIDIA may be significantly undervalued.
- [By Jim Cramer]
The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 16.1% when compared to the same quarter one year prior, going from $371.40 million to $431.20 million.
Top 10 Bank Stocks To Watch Right Now: Datawatch Corporation(DWCH)
Advisors’ Opinion:
- [By Lisa Levin]
Datawatch Corporation (NASDAQ: DWCH) shares were also up, gaining 14 percent to $8.10 after the company reported a narrower-than-expected quarterly loss.
Top 10 Bank Stocks To Watch Right Now: TeleNav Inc.(TNAV)
Advisors’ Opinion:
- [By Lisa Levin]
Telenav Inc (NASDAQ: TNAV) shares were also up, gaining 16 percent to $8.15 after the company reported the settlement of patent lawsuit. The company projects Q2 revenue of $51 million to $52 million and loss of $0.30 per share to $0.28 per share.
Top 10 Bank Stocks To Watch Right Now: Legacy Reserves LP(LGCY)
Advisors’ Opinion:
- [By Lisa Levin]
On Friday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from NGL Energy Partners LP (NYSE: NGL) and Legacy Reserves LP (NASDAQ: LGCY).
- [By Lisa Levin]
On Wednesday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Ocean Rig UDW Inc (NASDAQ: ORIG) and Legacy Reserves LP (NASDAQ: LGCY).
- [By Lisa Levin]
On Wednesday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Willbros Group Inc (NYSE: WG) and Legacy Reserves LP (NASDAQ: LGCY).
- [By Lisa Levin]
Energy shares surged around 1.85 percent in trading on Monday. Top gainers in the sector included Legacy Reserves LP (NASDAQ: LGCY), Whiting Petroleum Corp (NYSE: WLL), and Atwood Oceanics, Inc. (NYSE: ATW).
Top 10 Bank Stocks To Watch Right Now: FLIR Systems, Inc.(FLIR)
Advisors’ Opinion:
- [By Peter Graham]
Oregon based small cap FLIR Systems (NASDAQ: FLIR) was founded in 1978 as a world-leading maker of sensor systems that enhance perception and heighten awareness, helping to save lives, improve productivity, and protect the environment. Through its nearly 3,500 employees, the Company’s vision is to be “The World’s Sixth Sense” by leveraging thermal imaging and adjacent technologies to provide innovative, intelligent solutions for security and surveillance, environmental and condition monitoring, outdoor recreation, machine vision, navigation, and advanced threat detection.
- [By Jim Robertson]
Small cap homeland security and screening stocks like FLIR Systems (NASDAQ: FLIR), OSI Systems (NASDAQ: OSIS),Varex Imaging Corp (NASDAQ: VREX) and Patriot One Technologies (OTCQB: PTOTF) stand to benefit fromTrumps focus on border andinternal security in general. Heres what you need to know about all four:
- [By Teresa Rivas]
Flir Systems(FLIR) was the biggest loser in the S&P 500 on Tuesday, but the stock recouped all its losses Wednesday, and then some.
Getty Images
Flir Systems gained $2.78, or 8.1%, to close at $36.93.
The company’sdisappointing fourth-quarter earnings report was forgotten when it announced that the U.S. Coast Guard awarded it a $50 million contract. Flir will provide marine electronics systems for more than 2,000 Coast Guard vessels for its Scalable Integrated Navigation Systems 2 (SINS-2) program over a five-year period, with the option for extended delivery for an additional five years.
Even before the news, Imperial Capital’sEd Mally was bullish on the stock’s prospects, who raised his price target on the stock by $2, to $38:
Although we believe that some may still consider Flir as just a premier provider of very high-end cameras in the bellies of Bell Helicopters or border towers in a lumpy government sector, this 35-year-old company is a global leader in thousands of infrared detector cores and thermography equipment markets and also provides lower priced products to commercial and consumer security customers as well as other customers.
Flir is up 2% so far this year.
Coty(COTY) was the hottest stock in the S&P 500 yesterday.
- [By Peter Graham]
Oregon based small cap FLIR Systems (NASDAQ: FLIR) was founded in 1978 as a world-leading maker of sensor systems that enhance perception and heighten awareness, helping to save lives, improve productivity, and protect the environment. Through its nearly 3,500 employees, the Company’s vision is to be “The World’s Sixth Sense” by leveraging thermal imaging and adjacent technologies to provide innovative, intelligent solutions for security and surveillance, environmental and condition monitoring, outdoor recreation, machine vision, navigation, and advanced threat detection.
Top 10 Bank Stocks To Watch Right Now: Evoke Pharma, Inc.(EVOK)
Advisors’ Opinion:
- [By Cameron Saucier]
Evoke (Nasdaq: EVOK) is a pharmaceutical company that develops drug candidates intended to treat gastrointestinal diseases. EVOK rose 73% last month after it announced positive guidance from the FDA for Gimoti, a patented nasal delivery drug that is intended to treat gastroparesis in adult women. The positive results were from a second pre-NDA (New Drug Application) meeting Evoke had with the FDA. EVOK is currently trading at $2.67 per share and is down 9.83% as of Jan. 9 YOY.
- [By Lisa Levin]
Losers
DBV Technologies SA – ADR (NASDAQ: DBVT) shares tumbled 50.6 percent to $23.73 after the company disclosed that its peanut allergy trial failed to meet primary endpoint.
Connecture Inc (NASDAQ: CNXR) shares declined 40.8 percent to $0.290. Connecture reported that it will voluntarily delist from the NASDAQ for OTCQX Market.
Walter Investment Management Corp (NYSE: WAC) slipped 19.2 percent to $0.410. On Friday, Walter Investment Management disclosed that it has reached an agreement with term lenders and senior noteholders on financial restructuring.
Eldorado Gold Corp (USA) (NYSE: EGO) shares dropped 15.9 percent to $1.83. Eldorado Gold lowered its production guidance for its Kisladag operation.
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) shares fell 15.4 percent to $1.04.
Future Fintech Group Inc (NASDAQ: FTFT) dropped 13.6 percent to $1.53. Future FinTech reported filing of proxy statement, including proposal for corporate restructuring.
Concordia International Corp (NASDAQ: CXRX) shares fell 12.3 percent to $0.500 after dipping 38.71 percent on Friday.
Aemetis Inc (NASDAQ: AMTX) shares declined 11.3 percent to $0.550
OncoSec Medical Inc (NASDAQ: ONCS) dipped 10.5 percent to $1.12. OncoSec reported a $7.1 million registered direct at-the-market offering at a price of $1.34375 per share.
Evoke Pharma Inc (NASDAQ: EVOK) shares fell 10.35 percent to $3.08 after the company disclosed 'positive' topline results from comparative exposure pharmacokinetic study for Gimoti.
Eiger Biopharmaceuticals Inc (NASDAQ: EIGR) shares dropped 9.4 percent to $11.60 as the company disclosed Phase 2 interim 24-week data with pegylated interferon lambda in Hepatitis Delta Virus infection at the American Association for the Study of Liver Diseases Meeting.
Viking Therapeutics Inc (NASDAQ: VKTX) shares slipped 6.6 percent to $2.80. Viking Therapeutics presented results from proof-of-concept study of VK0214 in in vivo
