On Thursday, our Under the Radar Moversnewsletter suggested putting small cap onshore oil stock Evolution Petroleum Corp (NYSEMKT: EPM) into an aggressive short-term portfolio:
The oil property developer fits into the bullish call we (re)made for exploration and production stocks in yesterday’s newsletter, and like the industry chart, the long-term chart of EPM looks like it’s getting increasingly healthier for the long haul
First, the chart. With this week’s strength we can see EPM is trying to punch through the ceiling around $5.97, using the 100-day moving average line as a pushoff point (following the cross of the 100-day line above the 200-day moving average line). What’s missing is volume, but we can do without for the time being.
As for fundamentals. it’s interesting that Evolution Petroleum started to do better in 2014 when oil started to implode. We don’t think this inherently means crude oil prices have to be weak for Evolution Petroleum to thrive. It is evidence, however, that Evolution Petroleum can thrive in various environments. Either way, clearly somebody thinks EPM is headed into a heyday of revenue and earnings. It’s not like they pull the outlook out of a hat. Ironically, I suspect moderated oil prices are the sweet spot for Evolution Petroleum, which is what we’re apt to get for the next several quarters.
Top 10 Small Cap Stocks To Invest In 2018: FuelCell Energy Inc.(FCEL)
Advisors’ Opinion:
- [By Lisa Levin]
FuelCell Energy Inc (NASDAQ: FCEL) shares dropped 33 percent to $1.08. FuelCell Energy priced its $15.4 million underwritten public offering of common stock and warrants.
- [By Peter Graham]
The Q4 2016 earnings report for small cap fuel cell stockFuelCell Energy Inc (NASDAQ: FCEL) is scheduled forbefore the marketopens onThursday (January 12th). At the beginning of December, FuelCell Energy announced a business restructuring to reduce costs and align production levels with current levels of demand in a manner that is consistent with the Companys long-term strategic plan.The Company said it cut 96 jobs, or 17% of its workforce, and has halved production to 25 megawatts a year in order to position for delays in order flow.The Company alsoexpects to take a $3 million charge in fiscal 2017 related to the job cuts.
- [By Peter Graham]
A long term performance chart shows Ballard Power Systemsalong with alternative energy or fuel cell stock peers like small capsFuelCell Energy Inc (NASDAQ: FCEL), Hydrogenics Corporation (NASDAQ: HYGS) and Plug Power Inc (NASDAQ: PLUG) all peaking in 2014 before falling back; but BLDP and PLUG have picked up steam earlier this year:
Top 10 Small Cap Stocks To Invest In 2018: China Metro-Rural Holdings Limited(CNR)
Advisors’ Opinion:
- [By Max Byerly]
Canadian National Railway (NYSE:CNI) (TSE:CNR) – Cormark raised their Q3 2018 earnings per share (EPS) estimates for Canadian National Railway in a research report issued to clients and investors on Tuesday, April 10th. Cormark analyst D. Tyerman now expects that the transportation company will post earnings per share of $1.15 for the quarter, up from their previous estimate of $1.14.
Top 10 Small Cap Stocks To Invest In 2018: Rackspace Hosting Inc(RAX)
Advisors’ Opinion:
- [By Monica Gerson]
Rackspace Hosting, Inc. (NYSE: RAX) reported better-than-expected earnings for the first quarter, but the company missed analysts’ sales estimates. Rackspace shares dropped 7.72 percent to $20.80 in the after-hours trading session.
Top 10 Small Cap Stocks To Invest In 2018: Panera Bread Company(PNRA)
Advisors’ Opinion:
- [By Lisa Levin]
Shares of Panera Bread Co (NASDAQ: PNRA) got a boost, shooting up 14 percent to $312.29 after the company agreed to be acquired by JAB for $7.5 billion.
- [By Billy Duberstein]
In late March, the company informed investors that after a two-year undertaking, it had finally removed all preservatives from its tortillas, making the Chipotle menu completely preservative-free. The company also called out competitors McDonald’s (NYSE: MCD) and Panera Bread (NASDAQ: PNRA) for marketing their menus as “natural,” as Chipotle insisted these other restaurants still use preservatives made in a lab.
- [By WWW.THESTREET.COM]
Then there’s Panera Bread (PNRA) , a company that had lost its way. But after interviewing Panera’s CEO Ron Shaich, Cramer learned that at its new, remodeled “Panera 2.0” stores, the lines were out the door. As the rollout continued, earnings only got stronger. Never underestimate the power of a restaurant redo, Cramer concluded.
- [By Ben Levisohn]
Keurigs plight (actually, JABs) is worsening, with the K-cup market slowing to almost no growth now, and Keurig continuing to lose own brands share. Starbucks (SBUX) echoed the notion of a K-cup market slowdown at its seminar on Wednesday (and is guiding for its [consumer packaged goods, or CPG,] growth below recent trends), but it expects to increase its share of total CPG coffee to 20% from 15%. Come early February it will be a year since the closing of the Keurig deal for JAB Holdings. The pressure on JAB is more significant if we take into account the high leverage of the deal (JAB contributed one fourth of the $12Bn price tag). It is a tough predicament. On the one hand we argue that to make that deal work, they need to buy more (own) brands either from the retail channel (that can be extended to CPG: Dunkin (DNKN)? Panera (PNRA)?), or outright buy CPG brands (like the entire Kraft Heinz portfolio, and or Tata Groups Eight OClock brand). But can/how do they fund these deals? Maybe Mars and Warren Buffett (Mars is involved in office coffee with Starbucks), private equity, and or 3G can help? While this note is not about Positive-rated Mondelez, we have mentioned before a scenario where Kraft Heinz buys Mondelez and partly funds the deal by selling its own CPG coffee business (~$3Bn we say) to JAB as well as divests the Mondelez 20% plus stakes in Keurig (North America) and Jacobs Douwe Egberts (Western Europe), which together at this stage are worth ~$7-8Bn. But, yes, JAB will need deep-pocket partners and generous lenders. Net, JAB needs to do something soon.
Top 10 Small Cap Stocks To Invest In 2018: Achillion Pharmaceuticals Inc.(ACHN)
Advisors’ Opinion:
- [By Paul Ausick]
Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) dropped about 6.9% Friday to post a new 52-week low of $2.69 after closing at $2.89 on Thursday. The 52-week high is $5.66. Volume was around 6.2 million, more than three times the daily average of around 1.9 million. The company had no specific news.
- [By Ben Levisohn]
We updated our annual U.S. Hep C survey in early July, in order to gauge the future for Gilead, AbbVie/Enanta Pharmaceuticals (ENTA), Merck, and J&J/Achillion Pharmaceuticals (ACHN). In conjunction with script trends, physicians indicate that the market for treatment-eligible, easily accessible Hep C patients is shrinking, but that Gilead’s share of the shrinking pie is continuing to grow. With no end to script declines in sight, we are left wondering where the Hep C will bottom…
