Interest rates in Germany are -0.94% as I write… Read that closely – that's a NEGATIVE number – roughly negative 1%. Said another way, you will "earn" -0.94% interest per year over two years in Germany today. I put "earn" in quotes because you will actually lose that money each year. It's negative interest. By buying two-year government bonds in Germany, you are guaranteeing that you will lose roughly 1% a year in "interest." What's going on? Lots of things… But it primarily comes down to the basics: supply and demand. There is no supply, and there is lots of demand…
On the demand side, the French are buying German bonds to get money away from the uncertainty around France's presidential election. And the European Central Bank must buy 80 billion euros' worth of German bonds by year-end. There's plenty of demand.
top stocks to invest in: Zion Oil & Gas Inc(ZN)
Advisors’ Opinion:
- [By Lisa Levin]
In trading on Wednesday, energy shares fell by 0.76 percent. Meanwhile, top losers in the sector included Whiting Petroleum Corp (NYSE: WLL), down 6 percent, and Zion Oil & Gas, Inc. (NASDAQ: ZN) down 7 percent.
- [By Lisa Levin]
Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN) got a boost, shooting up 20 percent to $5.07.
Spark Energy Inc (NASDAQ: SPKE) shares were also up, gaining 12 percent to $19.40. Guggenheim upgraded Spark Energy from Neutral to Buy.
- [By Lisa Levin]
Shares of Zion Oil & Gas, Inc. (NASDAQ: ZN) got a boost, shooting up 47 percent to $6.21.
Spark Energy Inc (NASDAQ: SPKE) shares were also up, gaining 10 percent to $19.10. Guggenheim upgraded Spark Energy from Neutral to Buy.
top stocks to invest in: Synta Pharmaceuticals Corp.(SNTA)
Advisors’ Opinion:
- [By Lisa Levin]
Synta Pharmaceuticals Corp. (NASDAQ: SNTA) shares were also up, gaining 61 percent to $0.393. Synta Pharmaceuticals announced plans to merge with privately-held Madrigal Pharmaceuticals.
top stocks to invest in: B&G Foods, Inc.(BGS)
Advisors’ Opinion:
- [By Chris Lange]
B&G Foods Inc. (NYSE: BGS) madewaves late on Friday after the company announced its most recent acquisition. B&G has now acquired Victoria Fine Foods from Huron Capital Partners and other sellers for roughly $70 million in cash.
top stocks to invest in: Fox Factory Holding Corp.(FOXF)
Advisors’ Opinion:
- [By Javier Hasse]
Fox Factory Holding Corp (NASDAQ: FOXF) was down 1.8 percent after posting a 2.16 percent rise over the day.
Finally, Groupon Inc (NASDAQ: GRPN) gained 1.3 percent, continuing with the 3.85 percent spike it experienced on Friday trading.
top stocks to invest in: Terex Corporation(TEX)
Advisors’ Opinion:
- [By Ben Levisohn]
Yesterday, Terex (TEX) announced that it would sell its ports business to Konecranes for $1.3 billion. Today, Baird’s Mircea Dobre and Joseph Grabowski upgraded Terex to Outperform from Neutral, arguing that the sale makes a takeover by China’s Zoomlion that much easier. They explain:
Balint Porneczi/Bloomberg News
The sale of MHPS to Konecranes is a positive catalyst on multiple fronts: shareholders got an attractive multiple for what historically has been a challenged business with further upside possible given 25% equity ownership in Konecranes, execution risk is diminished as new CEO can focus on operational improvement without the effort required to integrate the Terex and Konecranes businesses, and finally, the MHPS sale makes it easier for Zoomlion to acquire remaining Terex.
While our upgrade is not reliant on Zoomlion acquiring Terex, the MHPS transaction could make a firm Zoomlion offer more likely.
At the margin, a Zoomlion deal appears easier to get done: 1) the remaining businesses fit better with Zoomlions existing product portfolio of construction equipment, cranes, and various commercial and municipal equipment, 2) given the attractive terms of the MHPS sale, the funding hurdle required to acquire Terex is lowered, 3) many of the CFIUS issues center around national security concerns regarding the nations ports, no longer a concern given MHPS sale.
Dobre and Grabowski also raised their price target on Terex to $30, up from $24. With Terex off 0.1% at $24.88 today, that leaves 21% upside in the stock to Baird’s target.
In February, I wrote about Chinese demand for U.S. companies, including Terex.
- [By Ben Levisohn]
Third and a trigger for the change: China becomes an active bidder in the space. Chinas Zoomlion bid for Terex (TEX) ($3.3B) along with Haier/General Electric (GE) ($5.4B) and several ChemChina proposed deals in industrials changes the upside/downside skew, particularly on lower quality/more challenged names. The Terex bid does not appear to be one-off. Chinese outbound M&A announcements rose to record highs in 15; to $112B (up 57% from 2014) in total acquisitions. Industrials formed a large and rising portion, at ~12B completed. Thats roughly equal to the 3 prior years industrials deals combined, and is the highest on record. Energy and materials accounted for ~15% of 15 spend vs. ~83% in 2011. Even lower quality or more currently challenged machinery franchises have distribution which could be highly attractive to new entrants…
- [By Ben Levisohn]
Shares of Terex (TEX) had surged 32% as of the close of trading last Thursday–but dropped 14% the next day after China’s Zoomlion announced that it wouldn’t be pursuing a purchase of the U.S. crane maker after all. In the aftermath of the scuttled deal, Morgan Stanley’s Mili Pothiwala and Nigel Coe cut Terex to Equal Weight from Overweight:
Balint Porneczi/Bloomberg News
On Friday morning, Zoomlion announced it had terminated its bid for its proposed acquisition of Terex for $31/ share. This was a clear negative for Terex shares, which traded down ~15% on Friday to $20, given the absence of an event-driven catalyst (following the sale of MHPS to Konecranes, which we assume will be completed). However, we think that the stock’s current discount to the Machinery group on a P/E basis (20%+) is justified, given a still challenged underlying operating environment for the RemainCo, as well as historically uneven company execution – both of which return to the forefront of the investment debate following the removal of the M&A bull case.
To which all we can say is: Oops.
Shares of Terex have dropped 0.5% to $20.78
top stocks to invest in: B2Gold Corp(BTG)
Advisors’ Opinion:
- [By Monica Gerson]
B2Gold Corp (NYSE: BTG) is estimated to post its quarterly earnings at $0.00 per share on revenue of $135.84 million.
Astro-Med, Inc. (NASDAQ: ALOT) is projected to post its quarterly earnings at $0.21 per share on revenue of $25.50 million.
- [By Peter Graham]
The following mining companies are active in Burkina Faso:
Semafo Inc (TSE: SMF; OTCMKTS: SEMFF).SEMAFO operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposit of Siou, and is targeting production start-up of the Boungou Mine in the second half of 2018. SEMAFO’s strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities. SEMAFOs Mana Mine is located 260 kilometers southwest of the capital Ouagadougou. The third-largest mine in the country, it has produced some 1.6 million ounces since its first gold pour in 2008. Since then,the Company hasexpanded the plant four times to a current processing rate of over 7,200 tonnes per day. IAMGOLD Corp (NYSE: IAG). Iamgold has four operating gold mines on three continents with asolid base of strategic assets in North and South America and West Africa that is complemented by development and exploration projects with continued assessment of accretive acquisition opportunities. Iamgold is said to be thelargest private employer in Burkina Faso andhas a high level of exposure in the region with two operating mines in Mali and a mine in northern Burkina Faso near the Mali border. Roxgold Inc (TSE: ROXG; OTCMKTS: ROGFF). Roxgold is a gold mining company with its key asset, the high grade Yaramoko Gold Mine, located in the Hound茅 greenstone region of Burkina Faso, West Africa. The Company declared commercial production on October 1, 2016. The Yaramoko permit covers approximately 196km2 in the Province of Bal茅 in southwestern Burkina Faso. The property is located approximately 200 kilometres southwest from the capital city of Ouagadougou. Yaramoko lies directly south of, and is contiguous to, the SEMAFO Inc property hosting its flagship Mana Gold Mine and lies within the Hounde greenstone belt. Endeavour Mining Corp (TSE: EDV; OTCMKTS: EDVMF). Endeavour is ideally positioned as the majo
- [By Lisa Levin] Related CXW Trump Or Clinton: Who Would Create More Jobs? The 2016 Economics Nobel Prize Winner's Case Against Private Prisons: Contracts Are The Key Wall Street Breakfast: Trump Takes The White House (Seeking Alpha)
Related SAEX 20 Biggest Mid-Day Losers For Friday 22 Stocks Moving In Friday's Pre-Market Session SAExploration wins $35M seismic data deal (Seeking Alpha)
Gainers
Corrections Corp Of America (NYSE: CXW) shares rose 16.3 percent to $16.50 in pre-market trading following Donald Trump's victory.
SAExploration Holdings, Inc. (NASDAQ: SAEX) shares rose 15.4 percent to $7.26 in pre-market trading after the company reported a new $35 million deep water ocean-bottom marine project award.
The GEO Group Inc (NYSE: GEO) shares rose 12.9 percent to $26.95 in pre-market trading following Donald Trump's victory.
Cloud Peak Energy Inc. (NYSE: CLD) rose 12.3 percent to $7.40 in pre-market trading after gaining 0.30 percent on Tuesday.
Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA) rose 11.7 percent to $10.35 in pre-market trading. Ariad Pharmaceuticals disclosed that its Phase 1/2 trial data on investigational drug brigatinib were published in The Lancet Oncology.
AK Steel Holding Corporation (NYSE: AKS) rose 11.2 percent to $6.75 in pre-market trading after gaining 3.23 percent on Tuesday.
Pretium Resources Inc (NYSE: PVG) rose 11 percent to $10.50 in pre-market trading after declining 1.66 percent on Tuesday.
First Majestic Silver Corp (NYSE: AG) rose 9.3 percent to $8.90 in the pre-market trading session. First Majestic reported Q3 earnings of $0.07 per share on revenue of $79.3 million. Silver futures gained 2.2 percent to $18.77 an ounce.
Dicerna Pharmaceuticals Inc (NASDAQ: DRNA) rose 9.2 percent to
